<PAGE>
PAPP AMERICA-ABROAD FUND, INC.
A No-Load Fund
FIRST QUARTER REPORT
MARCH 31, 1996
Managed by:
L. Roy Papp & Associates
4400 North 32nd
Street
Suite 280
Phoenix, AZ 85018
(602)956-1115 Local
(800)421-4004
<PAGE>
FACTS ABOUT THE FUND
INVESTMENT OBJECTIVE
The Fund invests with the objective of long-term capital growth in the common
stocks of United States companies that have substantial international activities
and, to a much lesser extent, in the common stocks of foreign enterprises that
are traded publicly in United States securities markets.
THE INVESTMENT ADVISER
The Fund's assets are managed by L. Roy Papp & Associates, the largest
investment counseling firm in Arizona, with over $589 million in total assets
managed for individuals, trusts, corporations, and charitable and educational
institutions. Founded in 1978, the Firm is solely in the investment management
business. The Firm is an independent general partnership. Of its ten general
partners, seven are Chartered Financial Analysts (CFAs).
EXPERIENCED MANAGEMENT
The securities portfolio of the Fund is managed by L. Roy Papp and Rosellen C.
Papp. Mr. Papp, the founder of L. Roy Papp & Associates, has over 40 years
experience in the field of investment management. Prior to founding L. Roy Papp
& Associates, he was a senior partner of a large investment counseling firm in
Chicago, Illinois and the United States Director and Ambassador to the Asian
Development Bank, Manila, Philippines. He received his M.B.A. degree from the
Wharton School, University of Pennsylvania and his A.B. degree from Brown
University.
Rosellen C. Papp, the director of research at L. Roy Papp & Associates, has over
17 years experience in security and financial analysis. She holds a Master of
Management degree in Finance from the Kellogg Graduate School of Management,
Northwestern University and a B.B.A. degree from the University of Michigan. She
is a Chartered Financial Analyst and member of the International Society of
Financial Analysts.
"PURE" NO-LOAD
The Fund is a "pure" no-load fund in that there are no "loading" charges or
sales commissions paid in connection with the purchase of its shares. In
addition, there are no deferred sales loads, no redemption fees, and no 12b-1
fees. The Fund's investment adviser receives an annual management fee of 1%,
which is based on the Fund's average daily net asset value. Other expenses such
as auditing charges, legal fees, and custodial expenses are limited to 1/4% of
the Fund's average daily net asset value; therefore, the Fund's annual expenses
may not exceed 1-1/4%.
SUITABILITY
The Fund is suitable only for long-term investors seeking capital appreciation
and increased dividend income over time. Included are individuals of most ages,
institutional accounts such as pension and profit sharing plans, retirement
accounts such as IRA's, educational accounts for young children, and many
personal trusts. The Fund is not suitable for those with high current income
needs, aggressive investors who desire maximum short-term results and are
willing to assume the attendant risks, and those with relatively short time
horizons who may require their capital in the near-term.
2
<PAGE>
Papp America-Abroad Fund, Inc.
Dear Fellow Shareholder:
Our Fund had a good first quarter of 1996. Per share net asset value rose from
$16.47 on December 31, 1995 to $17.80 on March 31, 1996, an increase of 8.1%.
Since inception, a little more than four years ago, the Fund was up 88.3%,
expressed on a total return basis.
Again the "experts," who predicted a sharp market correction after the
remarkable upsurge in stock prices in 1995, have been disappointed. Of course,
some day they will call it correctly but, in our judgment, there are a number of
good reasons why stocks have been strong. First, corporate earnings have been
rising, largely due to the often painful restructuring and downsizing which has
occurred over the last several years. Second, the Technology Age is upon us and
the United States is the unquestioned leader in creativity and innovation. In
turn, this has led to an enormous participation in the world's economy through
our strongest and best managed companies. Finally, the Cold War is no longer
with us and we need not commit such substantial resources to the military
effort.
Our securities portfolio is structured with these factors in mind. We own a
diverse group of the highest quality technology companies, three large drug
companies, and a wide range of individual stocks selected because of their
dominance in their marketplace. All of these companies have very substantial
international activities. We added four new stocks to the portfolio this
quarter, two of which, Exxon and General Electric, are household names. Arrow
Electronics is the world's largest distributor of industrial electronic
components. Under a new management team, it has rapidly expanded its
international presence through both internal growth and acquisitions. Sigma
Aldrich produces over 76,000 highest quality specialty chemical items used for
research and development by universities and clinical laboratories and is
expanding its overseas business which already accounts for 42% of total sales.
I want to welcome all of you who became interested in our Fund through the
article in Mutual Funds Magazine. We are a small organization and spend no money
on advertising or slick brochures. Because of this, an officer of the Fund will
always be on hand to answer your questions or receive your comments.
Best regards,
/s/ L. Roy Papp
L. Roy Papp, Chairman
April 12, 1996
3
<PAGE>
PAPP AMERICA-ABROAD FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
<TABLE>
<CAPTION>
Number Market
Common Stocks of Shares Value
- --------------------------------------------------------------------------------- ----------- --------
<S> <C> <C>
INDUSTRIAL SERVICES (13.8%)
Air Express International
(Air freight forwarding) 30,000 $ 772,500
Interpublic Group of Companies, Inc.
(Worldwide advertising agencies) 20,500 968,625
Manpower, Inc.
(Provider of nongovernment employment services) 22,500 697,500
----------
2,438,625
----------
HEALTHCARE (11.3%)
Abbott Laboratories
(Healthcare products) 10,900 444,175
Johnson & Johnson
(Healthcare products) 7,000 645,750
Merck & Company
(Ethical drugs and specialty chemicals) 14,500 902,625
----------
1,992,550
----------
COMPUTERS AND SOFTWARE (10.6%)
Hewlett-Packard Company
(Manufacturer of printers, computers, and medical
electronic equipment) 6,000 564,000
Intel Corporation
(Manufacturer of microprocessors, microcontrollers, and
memory chips) 12,000 682,500
Microsoft Corporation*
(Personal computer software) 6,000 618,750
----------
1,865,250
----------
CONSUMER PRODUCTS (9.7%)
Gillette Company
(Shaving and personal care) 16,000 828,000
Procter & Gamble Company
(Household, personal care, and food products) 10,400 881,400
----------
1,709,400
----------
FOOD AND BEVERAGE (8.6%)
CPC International
(International food processor) 9,000 624,375
Coca Cola Company
(Dominant international soft drink company) 10,800 892,350
----------
1,516,725
----------
ELECTRICAL EQUIPMENT (7.2%)
General Electric Co.
(Diversified industrial company) 5,500 428,312
Emerson Electric Company
(Manufacturer of electrical and electronic products and systems) 10,400 839,800
----------
1,268,112
----------
</TABLE>
*Non-income producing security.
4
<PAGE>
PAPP AMERICA-ABROAD FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1996
<TABLE>
<CAPTION>
Number Market
Common Stocks (continued) of Shares Value
- ------------------------------------------------------------------------------ --------- -----------
<S> <C> <C>
DISTRIBUTORS (6.4%)
Arrow Electronics, Inc.
(Distributor of electronic components and computer products) 4,400 $ 206,800
Sigma-Aldrich Corp.
(Develops, manufactures, and distributes specialty chemicals) 16,000 916,000
-----------
1,122,800
-----------
FINANCIAL SERVICES (5.4%)
State Street Boston Corporation
(Provider of U.S. and global securities custodial services) 19,000 950,000
-----------
RESTAURANTS (4.7%)
McDonald's Corporation
(Fast food restaurants and franchising) 17,400 835,200
-----------
TELECOMMUNICATIONS (4.6%)
Motorola, Inc.
(Manufacturer of electronic equipment) 15,200 805,600
-----------
MISCELLANEOUS (17.0%)
Exxon Corp.
(Worldwide integrated oil company) 8,500 693,813
Intermagnetics General*
(Manufacturer of superconductive magnetic systems
and environmentally acceptable refrigerants) 8,200 139,400
Mattel, Inc.
(Toy manufacturer) 34,000 922,250
Reuters Holdings P.L.C.
(International news agency) 5,000 325,625
Verifone, Inc.*
(Supplier of transaction automation systems) 22,000 924,000
-----------
3,005,088
-----------
TOTAL COMMON STOCKS - 99.3% 17,509,350
CASH AND OTHER ASSETS, LESS LIABILITIES - .7% 120,148
-----------
NET ASSETS - 100.0% $17,629,498
===========
NET ASSET VALUE PER SHARE
(Based on 1,003,702 shares outstanding at March 31, 1996) $17.56
===========
*Non-income producing security.
5
</TABLE>
<PAGE>
PAPP AMERICA-ABROAD FUND, INC.
DIRECTORS
James K. Ballinger L. Roy Papp
Amy S. Clague Rosellen C. Papp
Robert L. Mueller Bruce C. Williams
Harry A. Papp
OFFICERS
Chairman - L. Roy Papp President - Harry A. Papp
VICE PRESIDENTS
Victoria S. Cavallero Robert L. Mueller
George D. Clark, Jr. Rosellen C. Papp
Jeffrey N. Edwards Bruce C. Williams
Robert L. Hawley
Secretary - Robert L. Mueller
Assistant Secretary - Barbara D. Perleberg
Treasurer - Rosellen C. Papp
Assistant Treasurer - Julie A. Hein
INVESTMENT ADVISER
L. Roy Papp & Associates
4400 North 32nd Street, Suite 280
Phoenix, Arizona 85018
Telephone: (602) 956-1115
CUSTODIAN
First Interstate Bank of Arizona
100 West Washington Street
Phoenix, Arizona 85003
SHAREHOLDER SERVICES AND TRANSFER AGENT
L. Roy Papp & Associates
4400 North 32nd Street, Suite 280
Phoenix, Arizona 85018
Telephone: (602) 956-1115
(800) 421-4004
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
2 North Central Avenue, Suite 1000
Phoenix, Arizona 85004
LEGAL COUNSEL
Bell, Boyd & Lloyd
70 West Madison Street
Chicago, Illinois 60602
This report is submitted for the general information of the shareholders of the
Fund. The report is not authorized for distribution to prospective investors in
the Fund unless it is accompanied or preceded by a currently effective
prospectus of the Fund. No sales charge to the shareholder or to the new
investor is made in offering the shares of the Fund.
