111 Corcoran
Bond Fund
Semi-Annual Report
November 30, 1993
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to the shareholders of the 111
Corcoran Bond Fund. This report covers the six-month period from June 1, 1993 to
November 30, 1993.
As a shareholder, you will find important information in this report, including
the Fund's Portfolio of Investments and its Financial Statements.
To pursue its objective of achieving income, 111 Corcoran Bond Fund invests
primarily in bonds rated A or better by a nationally recognized statistical
rating organization. You will see that at the end of the report period, the
portfolio was composed of government obligations (52.3%), corporate bonds
(45.1%), and short-term obligations (3.7%).
From the first to the last day of the report period, the Fund's net assets
increased from $31.9 million to $90.3 million. During this period, the Fund paid
dividends of $1.3 million to shareholders.
Thank you for your confidence in 111 Corcoran Bond Fund. We look forward to
continuing to help you pursue income through the Fund.
Sincerely,
Edward C. Gonzales
President
January 15, 1994
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Intermediate and short-term interest rates increased the last half of 1993 which
slowed the progress of the taxable bond market. Nevertheless, the first six
months of the year were strong enough to allow for a good twelve-month return in
the fund. The average maturity of the fund, at year end, was 6.80 years and we
will be increasing this figure in 1994 as we find bonds which we feel represent
good value.
Looking forward into 1994, we feel that rates will probably increase slightly.
There are two conflicting forces at work. First, the inflation numbers currently
being registered would certainly support lower rates; however, at the same time,
the economy is recovering rapidly which will call for more financing in the
private sectors both corporate and individual. We feel the economic forces will
outweigh the good inflation news.
111 CORCORAN BOND FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
SHORT-TERM OBLIGATIONS--3.7%
- --------------------------------------------------------------------------------------
MUTUAL FUNDS--3.7%
-------------------------------------------------------------------
$3,320,044 Goldman Sachs Government Money Market Fund $ 3,320,044
------------------------------------------------------------------- -----------
TOTAL SHORT-TERM OBLIGATIONS (AT AMORTIZED COST) 3,320,044
------------------------------------------------------------------- -----------
CORPORATE BONDS--45.1%
- --------------------------------------------------------------------------------------
AUTO/TRUCK MANUFACTURER--0.3%
-------------------------------------------------------------------
250,000 General Motors Corp., 7.625%, 2/15/97 263,673
------------------------------------------------------------------- -----------
BANKING--2.5%
-------------------------------------------------------------------
750,000 Banc One Corporation, 7.25%, 8/1/2002 800,362
-------------------------------------------------------------------
350,000 Bank America, 7.75%, 7/15/2002 376,729
-------------------------------------------------------------------
500,000 Boatmen's Bank, 7.625%, 10/1/2004 544,160
-------------------------------------------------------------------
500,000 Comerica Corporation, 7.25%, 10/15/2002 528,815
------------------------------------------------------------------- -----------
Total 2,250,066
------------------------------------------------------------------- -----------
CHEMICALS--2.4%
-------------------------------------------------------------------
500,000 DuPont (E.I.) de Nemours & Co., 6.00%, 12/1/2001 499,255
-------------------------------------------------------------------
250,000 Hoechst Celanese Corporation, 9.45%, 6/15/97 256,962
-------------------------------------------------------------------
450,000 ICI Wilmington, 9.50%, 11/15/2000 535,230
-------------------------------------------------------------------
750,000 ICI Wilmington, 8.75%, 5/1/2001 850,867
------------------------------------------------------------------- -----------
Total 2,142,314
------------------------------------------------------------------- -----------
CONSUMER PRODUCTS--4.3%
-------------------------------------------------------------------
500,000 American Brands Co., 8.52%, 2/8/96 532,295
-------------------------------------------------------------------
500,000 Joseph E. Seagram & Sons, 9.75%, 6/15/2000 555,055
-------------------------------------------------------------------
500,000 Philip Morris, 5.95%, 1/23/95 507,260
-------------------------------------------------------------------
500,000 Philip Morris, 9.00%, 5/15/98 558,800
-------------------------------------------------------------------
1,000,000 Philip Morris, 7.125%, 8/15/2002 1,049,730
-------------------------------------------------------------------
750,000 RJR Nabisco Holdings Corp., 8.00%, 1/15/2000 709,005
------------------------------------------------------------------- -----------
Total 3,912,145
------------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- --------------------------------------------------------------------------------------
ENERGY--1.3%
-------------------------------------------------------------------
$ 200,000 Atlantic Richfield Corporation, 5.625%, 5/15/97 $ 199,694
-------------------------------------------------------------------
75,000 Atlantic Richfield Corporation, 7.75%, 12/15/2003 76,041
-------------------------------------------------------------------
500,000 BP America, Inc., 9.375%, 6/1/97 512,430
-------------------------------------------------------------------
147,000 Imperial Oil Limited, 9.75%, 9/15/2009 152,769
-------------------------------------------------------------------
200,000 Pennzoil Co., 6.50%, 1/15/2003 250,000
------------------------------------------------------------------- -----------
Total 1,190,934
------------------------------------------------------------------- -----------
FOREST PRODUCTS--0.8%
-------------------------------------------------------------------
250,000 Temple Inland, Inc., 8.875%, 2/1/96 269,317
-------------------------------------------------------------------
400,000 Temple Inland, Inc., 7.25%, 9/15/2004 418,556
------------------------------------------------------------------- -----------
Total 687,873
------------------------------------------------------------------- -----------
FINANCE--COMMERCIAL--11.8%
-------------------------------------------------------------------
1,000,000 Dow Capital, 5.75%, 9/15/97 1,013,680
-------------------------------------------------------------------
1,000,000 Ford Capital BV, 9.00%, 8/15/98 1,125,480
-------------------------------------------------------------------
500,000 Ford Capital BV, 9.375%, 5/15/2001 591,765
-------------------------------------------------------------------
500,000 Ford Motor Credit Company, 7.125%, 12/1/97 524,355
-------------------------------------------------------------------
500,000 Ford Motor Credit Company, 6.25%, 2/26/98 510,475
-------------------------------------------------------------------
400,000 General Electric Capital Corp., 6.97%, 1/23/98 423,332
-------------------------------------------------------------------
750,000 General Motors Acceptance Corp., 7.00%, 9/15/2002 760,350
-------------------------------------------------------------------
500,000 ITT Financial, 7.375%, 10/15/95 519,190
-------------------------------------------------------------------
100,000 ITT Financial, 7.00%, 1/15/97 103,630
-------------------------------------------------------------------
250,000 Merrill Lynch Corp., 7.75%, 3/1/99 266,045
-------------------------------------------------------------------
500,000 Merrill Lynch Corp., 8.25%, 11/15/99 547,095
-------------------------------------------------------------------
1,500,000 Merrill Lynch Corp., 8.00%, 2/1/2002 1,628,505
-------------------------------------------------------------------
500,000 Merrill Lynch Corp., 7.375%, 8/17/2002 532,800
-------------------------------------------------------------------
150,000 Morgan Stanley, 9.875%, 5/1/95 160,150
-------------------------------------------------------------------
200,000 Morgan Stanley, 7.875%, 12/15/98 216,448
-------------------------------------------------------------------
500,000 Private Expert Funding Corp., 8.90%, 3/15/95 526,555
-------------------------------------------------------------------
250,000 Salomon Brothers Inc., 7.125%, 8/1/99 258,650
-------------------------------------------------------------------
650,000 Salomon Brothers Inc., 7.25%, 1/15/2000 674,921
-------------------------------------------------------------------
250,000 Shearson Lehman Brothers, 8.375%, 4/1/97 268,707
------------------------------------------------------------------- -----------
Total 10,652,133
------------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- --------------------------------------------------------------------------------------
FINANCE--INSURANCE--3.3%
-------------------------------------------------------------------
$ 500,000 Aon Corp., 6.875%, 10/1/99 $ 516,740
-------------------------------------------------------------------
500,000 Cigna Corp., 7.40%, 1/15/2003 526,285
-------------------------------------------------------------------
500,000 Continental Corp., 7.25%, 3/1/2003 510,790
-------------------------------------------------------------------
250,000 Kemper Corp., 8.80%, 11/1/98 272,015
-------------------------------------------------------------------
750,000 Loews Corp., 8.875%, 4/15/2011 889,815
-------------------------------------------------------------------
250,000 Travelers Corp., 7.625%, 1/15/97 266,272
------------------------------------------------------------------- -----------
Total 2,981,917
------------------------------------------------------------------- -----------
FINANCE--RETAIL--0.6%
-------------------------------------------------------------------
250,000 Dean Witter Discover & Co., 6.25%, 3/15/2000 252,127
-------------------------------------------------------------------
250,000 Discover Credit Corporation, 7.68%, 4/22/97 263,737
------------------------------------------------------------------- -----------
Total 515,864
------------------------------------------------------------------- -----------
MACHINERY--0.2%
-------------------------------------------------------------------
198,000 Deere & Co., 8.45%, 3/1/2000 200,073
------------------------------------------------------------------- -----------
METALS--0.6%
-------------------------------------------------------------------
500,000 Reynolds Metals Co., 9.00%, 8/15/2003 580,430
------------------------------------------------------------------- -----------
MULTI-INDUSTRY--1.1%
-------------------------------------------------------------------
300,000 Eastman Kodak Co., 9.875%, 11/1/2004 351,561
-------------------------------------------------------------------
575,000 ITT Corporation, 7.25%, 11/15/96 605,538
------------------------------------------------------------------- -----------
Total 957,099
------------------------------------------------------------------- -----------
OFFICE EQUIPMENT--1.7%
-------------------------------------------------------------------
175,000 Xerox Corporation, 9.20%, 7/15/99 191,677
-------------------------------------------------------------------
610,000 Xerox Corporation, 9.625%, 10/15/2000 658,800
-------------------------------------------------------------------
650,000 Xerox Corporation, 7.15%, 8/1/2004 684,775
------------------------------------------------------------------- -----------
Total 1,535,252
------------------------------------------------------------------- -----------
PUBLISHING--0.9%
-------------------------------------------------------------------
750,000 Knight Ridder, Inc., 8.50%, 9/1/2001 846,382
------------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- --------------------------------------------------------------------------------------
RETAIL--5.0%
-------------------------------------------------------------------
$ 500,000 JC Penney, Inc., 9.375%, 2/1/98 $ 526,240
-------------------------------------------------------------------
200,000 JC Penney, Inc., 9.45%, 4/15/98 211,332
-------------------------------------------------------------------
500,000 May Dept. Stores Co., 9.60%, 6/15/95 537,935
-------------------------------------------------------------------
500,000 Sears Roebuck & Co., 8.50%, 5/15/95 525,455
-------------------------------------------------------------------
500,000 Sears Roebuck & Co., 9.47%, 1/23/96 543,985
-------------------------------------------------------------------
500,000 Sears Roebuck & Co., 9.00%, 9/15/96 544,550
-------------------------------------------------------------------
250,000 Sears Roebuck & Co., 7.75%, 11/22/96 266,482
-------------------------------------------------------------------
230,000 Sears Roebuck & Co., 7.22%, 1/9/97 241,776
-------------------------------------------------------------------
500,000 Sears Roebuck & Co., 6.70%, 7/14/97 517,015
-------------------------------------------------------------------
100,000 Sears Roebuck & Co., 6.00%, 5/1/2000 98,166
-------------------------------------------------------------------
500,000 Wal Mart Stores, Inc., 5.875%, 10/15/2005 487,655
------------------------------------------------------------------- -----------
Total 4,500,591
------------------------------------------------------------------- -----------
TECHNOLOGY--1.2%
-------------------------------------------------------------------
1,000,000 International Business Machines Corp., 7.25%, 11/1/2002 1,050,520
------------------------------------------------------------------- -----------
UTILITIES--5.7%
-------------------------------------------------------------------
500,000 Duke Power, 7.00%, 9/1/2005 527,175
-------------------------------------------------------------------
400,000 Equitable Resources, Inc., 7.50%, 7/1/99 424,340
-------------------------------------------------------------------
750,000 Hydro Quebec, 6.375%, 1/15/2002 748,095
-------------------------------------------------------------------
500,000 National Rural Utilities Corp., 8.50%, 2/15/98 554,695
-------------------------------------------------------------------
1,000,000 Northern States Power, 8.00%, 3/1/2001 1,021,470
-------------------------------------------------------------------
200,000 Public Service Electric & Gas Co., 4.625%, 9/1/94 199,886
-------------------------------------------------------------------
1,000,000 Public Service Electric & Gas Co., 7.875%, 11/1/2001 1,107,940
-------------------------------------------------------------------
500,000 United Telephone Co., 7.25%, 12/15/2004 544,685
------------------------------------------------------------------- -----------
Total 5,128,286
------------------------------------------------------------------- -----------
OTHER--1.5%
-------------------------------------------------------------------
500,000 Montreal Quebec, 6.00%, 11/1/2006 467,380
-------------------------------------------------------------------
890,000 Washington D.C. Metropolitan Area, 7.35%, 7/1/2012 890,000
------------------------------------------------------------------- -----------
Total 1,357,380
------------------------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $41,808,343) 40,752,932
------------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
GOVERNMENT OBLIGATIONS--52.3%
- --------------------------------------------------------------------------------------
FARM CREDIT SYSTEM FINANCIAL ASSISTANCE CORP.--0.7%
-------------------------------------------------------------------
$ 500,000 9.20%, 9/27/2005 $ 592,735
------------------------------------------------------------------- -----------
FEDERAL FARM CREDIT BANKS--1.1%
-------------------------------------------------------------------
1,000,000 4.44%, 4/28/98 965,170
------------------------------------------------------------------- -----------
FEDERAL HOME LOAN BANK--2.8%
-------------------------------------------------------------------
500,000 5.75%, 9/3/97 501,250
-------------------------------------------------------------------
1,000,000 4.06%, 5/11/98 996,340
-------------------------------------------------------------------
500,000 6.00%, 6/2/98 489,375
-------------------------------------------------------------------
500,000 7.47%, 5/18/99 522,160
------------------------------------------------------------------- -----------
Total 2,509,125
------------------------------------------------------------------- -----------
FEDERAL HOME LOAN MORTGAGE CORPORATION--14.9%
-------------------------------------------------------------------
500,000 6.09%, 3/1/2000 514,990
-------------------------------------------------------------------
750,000 5.875%, 3/15/2000 757,942
-------------------------------------------------------------------
1,000,000 5.90%, 4/21/2000 1,012,110
-------------------------------------------------------------------
500,000 9.15%, 8/8/2000 535,530
-------------------------------------------------------------------
500,000 7.00%, 6/15/2001 518,055
-------------------------------------------------------------------
500,000 7.50%, Series 1243, 8/15/2001 523,445
-------------------------------------------------------------------
500,000 7.00%, Series 1228H, 2/15/2002 506,930
-------------------------------------------------------------------
500,000 6.80%, 9/18/2002 519,720
-------------------------------------------------------------------
500,000 6.28%, 7/15/2003 497,065
-------------------------------------------------------------------
500,000 7.50%, Series 1376J, 4/15/2005 526,680
-------------------------------------------------------------------
1,000,000 8.00%, Series 1033G, 1/15/2006 1,039,070
-------------------------------------------------------------------
1,000,000 7.00%, Series 1187H, 12/15/2006 1,017,480
-------------------------------------------------------------------
1,000,000 7.00%, Series 1462D, 2/15/2007 1,018,700
-------------------------------------------------------------------
1,000,000 7.00%, Series 1462D, 8/15/2007 1,019,040
-------------------------------------------------------------------
500,000 7.00%, 8/15/2007 503,785
-------------------------------------------------------------------
1,000,000 6.50%, 9/15/2007 994,750
-------------------------------------------------------------------
400,000 7.00%, Series 1324VE, 8/15/2008 409,076
-------------------------------------------------------------------
1,000,000 7.00%, Series 1477ID, 11/15/2009 1,006,670
-------------------------------------------------------------------
500,000 7.00%, 1/15/2010 504,675
------------------------------------------------------------------- -----------
Total 13,425,713
------------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
GOVERNMENT OBLIGATIONS--CONTINUED
- --------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--18.1%
-------------------------------------------------------------------
$ 920,000 7.70%, 2/12/96 $ 926,670
-------------------------------------------------------------------
100,000 7.05%, 10/10/96 106,329
-------------------------------------------------------------------
1,000,000 8.94%, 12/2/96 1,088,440
-------------------------------------------------------------------
1,275,000 12.201%, 12/29/97 1,502,906
-------------------------------------------------------------------
1,000,000 4.25%, 2/17/98 999,220
-------------------------------------------------------------------
1,500,000 5.65%, 2/23/98 1,521,030
-------------------------------------------------------------------
1,000,000 4.95%, 9/30/98 979,920
-------------------------------------------------------------------
1,500,000 4.75%, 10/26/98 1,461,810
-------------------------------------------------------------------
95,000 7.05%, 12/18/98 99,038
-------------------------------------------------------------------
500,000 6.35%, 8/10/99 522,220
-------------------------------------------------------------------
500,000 6.95%, 9/10/2002 532,385
-------------------------------------------------------------------
1,250,000 7.50%, 11/25/2005 1,287,637
-------------------------------------------------------------------
2,000,000 7.00%, 7/25/2006 2,018,600
-------------------------------------------------------------------
500,000 7.00%, 9/25/2006 499,600
-------------------------------------------------------------------
1,000,000 7.25%, 12/25/2006 1,013,920
-------------------------------------------------------------------
755,000 7.00%, 8/25/2007 758,050
-------------------------------------------------------------------
1,000,000 6.75%, 9/25/2008 990,090
------------------------------------------------------------------- -----------
Total 16,307,865
------------------------------------------------------------------- -----------
SOVEREIGN GOVERNMENT--1.2%
-------------------------------------------------------------------
1,000,000 Ontario Province COA, 7.375%, 1/27/2003 1,058,190
------------------------------------------------------------------- -----------
TENNESSEE VALLEY AUTHORITY--5.3%
-------------------------------------------------------------------
75,000 6.00%, 1/15/97 77,044
-------------------------------------------------------------------
600,000 6.50%, 1/15/99 625,260
-------------------------------------------------------------------
1,000,000 8.375%, 10/1/99 1,142,070
-------------------------------------------------------------------
3,000,000 6.125%, 7/15/2003 2,964,150
------------------------------------------------------------------- -----------
Total 4,808,524
------------------------------------------------------------------- -----------
U.S. TREASURY BILLS--1.6%
-------------------------------------------------------------------
1,500,000 12/2/93 1,499,881
------------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
GOVERNMENT OBLIGATIONS--CONTINUED
- --------------------------------------------------------------------------------------
U.S. TREASURY NOTES--4.9%
-------------------------------------------------------------------
$ 175,000 6.875%, 8/15/94 $ 179,046
-------------------------------------------------------------------
1,975,000 5.625%, 8/31/97 2,027,456
-------------------------------------------------------------------
2,250,000 5.125%, 3/31/98 2,260,530
------------------------------------------------------------------- -----------
Total 4,467,032
------------------------------------------------------------------- -----------
OTHER--1.7%
-------------------------------------------------------------------
500,000 Discover Card, 7.85%, 11/21/2000 542,215
-------------------------------------------------------------------
500,000 Discover Card, 6.20%, 11/15/2003 497,805
-------------------------------------------------------------------
500,000 Sears Credit Account, 8.60%, 5/15/98 542,865
------------------------------------------------------------------- -----------
Total 1,582,885
------------------------------------------------------------------- -----------
TOTAL GOVERNMENT OBLIGATIONS (IDENTIFIED COST, $46,150,395) 47,217,120
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $91,278,782) $91,290,096+
------------------------------------------------------------------- -----------
</TABLE>
+ The cost for federal tax purposes amounts to $91,278,782. The net unrealized
appreciation of investments on a federal income tax basis amounts to $11,314
which is comprised of $964,323 appreciation and $953,009 depreciation at
November 30, 1993.
Note: The categories of investments are shown as a percentage of net assets
($90,324,027) at November 30, 1993.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments, at value (Note 2A) (identified and tax cost,
$91,278,782) $91,290,096
- ---------------------------------------------------------------------------------
Interest receivable 1,293,896
- ---------------------------------------------------------------------------------
Receivable for investments sold 239,634
- ---------------------------------------------------------------------------------
Receivable for Fund shares sold 82,118
- ---------------------------------------------------------------------------------
Prepaid/deferred expenses (Note 2E) 21,870
- --------------------------------------------------------------------------------- -----------
Total assets 92,927,614
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $2,015,209
- --------------------------------------------------------------------
Dividends payable 422,493
- --------------------------------------------------------------------
Payable for Fund shares repurchased 5,725
- --------------------------------------------------------------------
Payable to Custodian 37,389
- --------------------------------------------------------------------
Accrued expenses and other liabilities 122,771
- -------------------------------------------------------------------- ----------
Total liabilities 2,603,587
- --------------------------------------------------------------------------------- -----------
NET ASSETS for 8,765,167 shares of beneficial interest outstanding $90,324,027
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid-in capital $90,368,763
- ---------------------------------------------------------------------------------
Unrealized appreciation of investments 11,314
- ---------------------------------------------------------------------------------
Accumulated undistributed net realized loss on investments (56,050)
- --------------------------------------------------------------------------------- -----------
Total $90,324,027
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Price Per Share:
($90,324,027 / 8,765,167 shares of beneficial interest outstanding) $10.30
- --------------------------------------------------------------------------------- -----------
Computation of Offering Price:
Offering Price Per Share (100/95.5 of $10.30)* $10.79
- --------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------------------------------------------
Interest income (Note 2B) $1,459,931
- -----------------------------------------------------------------------------------
EXPENSES:
- -----------------------------------------------------------------------
Investment advisory fee (Note 5) $165,909
- -----------------------------------------------------------------------
Trustees' fees 2,636
- -----------------------------------------------------------------------
Administrative personnel and services (Note 5) 33,246
- -----------------------------------------------------------------------
Custodian fees 5,505
- -----------------------------------------------------------------------
Portfolio recordkeeping, transfer and dividend disbursing agent fees
(Note 5) 40,369
- -----------------------------------------------------------------------
Legal fees 3,626
- -----------------------------------------------------------------------
Printing and postage 7,396
- -----------------------------------------------------------------------
Insurance premiums 2,664
- -----------------------------------------------------------------------
Registration 20,773
- -----------------------------------------------------------------------
Auditing 7,634
- -----------------------------------------------------------------------
Taxes 27,080
- -----------------------------------------------------------------------
Miscellaneous 3,919
- ----------------------------------------------------------------------- --------
Total expenses 320,757
- -----------------------------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 5) 165,909
- ----------------------------------------------------------------------- --------
Net expenses 154,848
- ----------------------------------------------------------------------------------- ----------
Net investment income 1,305,083
- ----------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -----------------------------------------------------------------------------------
Net realized loss on investment transactions (identified cost basis)-- (40,283)
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation on investments (295,932)
- ----------------------------------------------------------------------------------- ----------
Net realized and unrealized loss on investments (336,215)
- ----------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $ 968,868
- ----------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
--------------------------
1994** 1993*
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------------
Net investment income $ 1,305,083 $ 1,098,039
- -------------------------------------------------------------------
Change in unrealized appreciation of investments (295,932) 307,247
- -------------------------------------------------------------------
Net realized loss from investment transactions ($40,283 net loss,
and $5,891 net gain, respectively, as computed for federal tax
purposes) (Note 2C) (40,283) (9,761)
- ------------------------------------------------------------------- ----------- -----------
Change in net assets resulting from operations 968,868 1,395,525
- ------------------------------------------------------------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- -------------------------------------------------------------------
Dividends to shareholders from net investment income (1,305,083) (1,098,039)
- -------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions -- (6,006)
- ------------------------------------------------------------------- ----------- -----------
Change in net assets from distributions to shareholders (1,305,083) (1,104,045)
- ------------------------------------------------------------------- ----------- -----------
FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- -------------------------------------------------------------------
Proceeds from sale of shares 61,066,278 34,694,409
- -------------------------------------------------------------------
Net asset value of shares issued to shareholders electing to
receive payment of dividends in Fund shares 74,884 43,730
- -------------------------------------------------------------------
Cost of shares redeemed (2,409,223) (3,201,316)
- ------------------------------------------------------------------- ----------- -----------
Change in net assets from Fund share transactions 58,731,939 31,536,823
- ------------------------------------------------------------------- ----------- -----------
Change in net assets 58,395,724 31,828,303
- -------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------
Beginning of period 31,928,303 100,000
- ------------------------------------------------------------------- ----------- -----------
End of period $90,324,027 $31,928,303
- ------------------------------------------------------------------- ----------- -----------
</TABLE>
* For the period from April 7, 1992 (the start of business) to May 31, 1993.
** Six months ended November 30, 1993 (unaudited).
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
-----------------------
1994*** 1993**
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.13 $ 10.00
- --------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------------------
Net investment income 0.30 0.488
- --------------------------------------------------------------------
Net realized and unrealized gain/(loss) on investments 0.17 0.133
- -------------------------------------------------------------------- ------ -------
Total from investment operations 0.47 0.621
- -------------------------------------------------------------------- ------ -------
LESS DISTRIBUTIONS
- --------------------------------------------------------------------
Dividends to shareholders from net investment income (0.30 ) (0.488)
- --------------------------------------------------------------------
Distributions to shareholders from net realized gain on investment
transactions -- (.003)
- -------------------------------------------------------------------- ------ -------
Total Distributions (0.30 ) (0.491)
- -------------------------------------------------------------------- ------ -------
NET ASSET VALUE, END OF PERIOD $10.30 $ 10.13
- -------------------------------------------------------------------- ------ -------
TOTAL RETURN* 4.78 % 6.28%
- --------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------------------
Expenses 0.70 %(a) 0.70%(a)
- --------------------------------------------------------------------
Net investment income 5.90 %(a) 6.00%(a)
- --------------------------------------------------------------------
Expense adjustment (b) 0.75 %(a) 0.78%(a)
- --------------------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------------------
Net assets, end of period (000 omitted) $90,324 $31,928
- --------------------------------------------------------------------
Portfolio turnover rate 16 % 59%
- --------------------------------------------------------------------
</TABLE>
* Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
** Reflects operations for the period from July 15, 1992 (date of initial
public investment) to May 31, 1993. For the period from April 7, 1992 (start
of business) to July 14, 1992, net investment income aggregating $0.0845 per
share ($846) was distributed to the Trust's administrator.
*** Six months ended November 30, 1993 (unaudited).
(a) Computed on an annualized basis.
(b) This expense decrease is reflected in both the expense and net investment
income ratios shown above (Note 5).
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The 111 Corcoran Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company with two
portfolios. The financial statements included herein present only those of the
111 Corcoran Bond Fund (the "Fund"). The financial statements of the other
portfolio are presented separately. The assets of each portfolio are segregated
and a shareholder's interest is limited to the portfolio in which shares are
held.
(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.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--U.S. government obligations generally are valued at the mean
between the over-the-counter bid and asked prices as furnished by an independent pricing
service. Corporate bonds (and other fixed income securities/asset backed securities) are
valued at the last sale price on national securities exchanges on that day, if available.
Otherwise, corporate bonds (and other fixed income securities/asset-backed securities)
are valued at the mean between the bid and asked prices provided by an independent
pricing service. Short-term obligations are generally valued at the mean between bid and
asked prices as furnished by an independent pricing service. Short-term obligations with
maturities of sixty days or less are valued at amortized cost, which approximates value.
B. INCOME--Interest income is recorded on the accrual basis and includes discount earned,
less any premium, on short-term obligations, and original issue discount on all other
debt securities.
C. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its taxable income, including any net
realized gains on investments. Accordingly, no provision for federal tax is necessary.
Additionally, net capital losses of $15,652 attributable to security transactions
incurred after October 31, 1992, are treated as arising on June 1, 1993, the first day of
the Fund's next taxable year.
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. The Fund records when-issued securities and maintains
security positions such that sufficient liquid assets will be available to make payment
for the securities purchases. Securities purchased on a when-issued or delayed delivery
basis are marked to market daily and begin earning interest on the settlement date.
</TABLE>
111 CORCORAN BOND FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
E. DEFERRED EXPENSES--The costs incurred by the Fund with respect to registration of its
shares in its first fiscal year, excluding the initial expense of registering the shares,
have been deferred and are being amortized using the straight-line method over a period
of five years from the Fund's commencement date.
F. OTHER--Investment transactions are accounted for on the date of the transaction.
</TABLE>
(3) DIVIDENDS
Dividends from net investment income are declared daily and paid monthly.
Distributions of any net realized capital gains are made at least once every
twelve months. Dividends and capital gain distributions, if any, are recorded on
the ex-dividend date.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of Trustees ("Trustees") to issue an
unlimited number of full and fractional shares of beneficial interest (without
par value). Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
----------------------
1994** 1993*
- ----------------------------------------------------------------------- --------- ---------
<S> <C> <C>
Shares outstanding, beginning of period 3,152,130 10,000
- -----------------------------------------------------------------------
Shares sold 5,837,296 3,455,710
- -----------------------------------------------------------------------
Shares issued to shareholders electing to receive payment of
distributions in Fund shares 7,226 4,382
- -----------------------------------------------------------------------
Shares redeemed (231,485) (317,962)
- ----------------------------------------------------------------------- --------- ---------
Shares outstanding, end of period 8,765,167 3,152,130
- ----------------------------------------------------------------------- --------- ---------
</TABLE>
* For the period from April 7, 1992 (start of business) to May 31, 1993.
** Six months ended November 30, 1993.
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Central Carolina Bank, the Fund's investment adviser ("Adviser"), receives for
its services an annual investment advisory fee equal to .75 of 1% of the Fund's
average daily net assets. The Adviser may voluntarily choose to waive a portion
of its fee or reimburse certain operating expenses of the Fund. The Adviser can
terminate any voluntary waiver of its fee or reimbursement of expenses at any
time at its sole discretion. For the six-month period ended November 30, 1993,
the Adviser earned $165,909, all of which was voluntarily waived.
Federated Administrative Services ("FAS") provides the Fund with certain
administrative personnel and services, and receives for its services an annual
fee equal to .15 of 1% on the first $250 million of
111 CORCORAN BOND FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
average aggregate daily net assets of the Trust; .125 of 1% on the next $250
million; .10 of 1% on the next $250 million; and .075 of 1% on average aggregate
daily net assets in excess of $750 million. FAS may voluntarily choose to waive
a portion of its fee. For the six-month period ended November 30, 1993, FAS
earned $33,246.
Organization expenses of ($46,033) were borne initially by FAS. The Fund has
agreed to reimburse FAS during the five year period from July 15, 1992, the date
the Trust's portfolio became effective. For the six-month period ended November
30, 1993, the Fund paid FAS $3,115.
Federated Services Company ("FSC"), the Fund's portfolio recordkeeper, transfer
agent and dividend disbursing agent, earned $40,369 for the six-month period
ended November 30, 1993.
Certain Officers and Trustees of the Trust are also Officers and Directors of
the companies mentioned in this Note to the financial statements.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
six-month period ended November 30, 1993 were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES $63,486,421
- ------------------------------------------------------------------------------- -----------
SALES $ 6,584,899
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- -----------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman and Treasurer
William J. Copeland Edward C. Gonzales
James E. Dowd President and Treasurer
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer Joseph S. Machi
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts John W. McGonigle
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
C. Grant Anderson
Assistant Secretary
</TABLE>
Mutual funds are not obligations of or insured by any bank nor are they insured
by the federal government or any of its agencies. Investment in these shares
involves risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
111 Corcoran
North Carolina
Municipal
Securities Fund
Semi-Annual Report
November 30, 1993
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to the shareholders of the 111
Corcoran North Carolina Municipal Securities Fund. This report covers the
six-month period from June 1, 1993 to November 30, 1993.
As a shareholder, you will find important information in this report, including
the Fund's Portfolio of Investments and its Financial Statements.
To pursue its objective of providing income that is exempt from North Carolina
state income tax, 111 Corcoran North Carolina Municipal Securities Fund invests
primarily in a portfolio of North Carolina municipal securities. You will see
that at the end of the report period, long-term North Carolina municipal
securities made up 94.7% of the Fund's portfolio.
From the first to the last day of the report period, the Fund's net assets
increased from $28.1 million to $38.8 million. During this period, the Fund paid
tax-free dividends of $712,425 to shareholders. (Income may be subject to the
federal alternative minimum tax.)
Thank you for your confidence in 111 Corcoran North Carolina Municipal
Securities Fund. We look forward to continuing to help you pursue tax-fee income
through the Fund.
Sincerely,
Edward C. Gonzales
President
January 15, 1994
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The North Carolina tax-exempt bond market held up quite well in late 1993 as
taxable issues declined. There was not a big supply of new municipal issues and
the prospect of higher tax rates in 1994 brought in some new buyers. We were
quite pleased with the overall results of the fund for the entire year.
In 1994, we are looking for a smaller supply of North Carolina municipal issues
than last year. With low rates in 1993, there was a large volume of refunding
issues that probably will not be present in 1994. Thus, we would look for
municipals to out-perform taxable issues, although we are still looking for
slightly higher rates. On the demand side, there have been numerous new North
Carolina municipal bond mutual funds started recently, which will absorb a lot
of the supply of new issues.
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--3.6%
- ----------------------------------------------------------------------
$ 200,000 Person County, NC, Daily VRDN NR $ 200,000
--------------------------------------------------------
500,000 Person County, NC, Weekly VRDN NR 500,000
--------------------------------------------------------
700,000 Winston-Salem, NC, Weekly VRDN NR 700,000
-------------------------------------------------------- -----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(AT AMORTIZED COST) 1,400,000
-------------------------------------------------------- -----------
LONG-TERM MUNICIPAL SECURITIES--94.7%
- ----------------------------------------------------------------------
NORTH CAROLINA--92.8%
--------------------------------------------------------
250,000 Alamance County, NC, 5.90%, 5/1/2006 AA 270,843
--------------------------------------------------------
550,000 Alamance County, NC, 4.80%, 4/1/2008 (4/1/2003 @ 102) AA 534,952
--------------------------------------------------------
550,000 Alamance County, NC, 4.90%, 4/1/2010 AA 537,262
--------------------------------------------------------
350,000 Buncombe County, NC, 5.20% GO Bonds, 5/1/2008 (5/1/2003
@ 102) AA 351,750
--------------------------------------------------------
500,000 Buncombe County, NC, 5.30% Revenue Bonds
(FGIC Insured), 7/1/2007 AAA 505,380
--------------------------------------------------------
865,000 Cabarrus County, NC, 4.80% (FGIC Insured), 3/1/2010
(3/1/2003 @ 102) NR 824,535
--------------------------------------------------------
500,000 Catawba Hospital, 5.95%, 10/1/2005 (10/1/2002 @ 102) AAA 538,460
--------------------------------------------------------
400,000 Charlotte-Mecklenburg Hospital Authority, NC, 6.375%
OID, 1/1/2009 AA 432,260
--------------------------------------------------------
350,000 Charlotte-Mecklenburg Hospital Authority, NC, 5.75% OID
Healthcare System Revenue (Original Issue Yield: 5.75%),
1/1/2012 (1/1/2002 @ 102) AA 357,770
--------------------------------------------------------
250,000 Charlotte, NC, 6.50%, 2/1/2008 (2/1/2001 @ 102) AAA 280,848
--------------------------------------------------------
250,000 Charlotte, NC, 6.50%, 2/1/2008 (2/1/2001 @ 102) AAA 280,848
--------------------------------------------------------
250,000 Charlotte, NC, 6.20%, GO Bonds, 6/1/2015
(6/1/2002 @ 102) AAA 272,220
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 250,000 Charlotte, NC, 5.70% GO Bonds, 3/1/2005
(3/1/2002 @ 101.5) AAA $ 269,118
--------------------------------------------------------
375,000 Durham, NC, 5.75%, 2/1/2006 (2/1/2002 @ 102) AA1 401,921
--------------------------------------------------------
100,000 Durham, NC, 5.75% GO Bonds, 2/1/2008
(2/1/2002 @ 102) AA1 105,822
--------------------------------------------------------
750,000 Cleveland County, NC, 5.10% GO Bonds, 6/1/2006 (6/1/2003
@ 101.5) AAA 765,293
--------------------------------------------------------
295,000 Cleveland County, NC, 5.70% (AMBAC Insured),
San. Dist., 3/1/2006 AAA 311,417
--------------------------------------------------------
225,000 Cleveland County, NC, 5.70% (AMBAC Insured),
San. Dist., 3/1/2008 (3/1/2002 @ 102) AAA 236,401
--------------------------------------------------------
125,000 Cleveland County Special District, NC, 6.00%
(AMBAC Insured), 3/1/2008 (3/1/2002 @ 102) AAA 134,050
--------------------------------------------------------
600,000 Concord, NC, Utilities System, 6.00% (MBIA Insured),
12/1/2010 (12/1/2002 @ 102) AAA 639,690
--------------------------------------------------------
500,000 Concord, NC, Utilities System, 5.75% (MBIA Insured),
12/1/2017 (12/1/2002 @ 102) AAA 512,200
--------------------------------------------------------
365,000 Craven County, NC, 6.20%, 6/1/99 A1 399,408
--------------------------------------------------------
600,000 Cumberland County, NC, 5.80%, 2/1/2007
(2/1/2003 @ 102) AAA 651,330
--------------------------------------------------------
470,000 Duplin County, NC, 5.30% GO Bonds, 4/1/2007
(6/1/2003 @ 102) AAA 482,643
--------------------------------------------------------
500,000 Durham & Wake Counties Special Airport District, NC,
5.75%, 4/1/2002 AAA 546,640
--------------------------------------------------------
100,000 Durham County, NC, 5.40%, 2/1/98 AAA 105,438
--------------------------------------------------------
350,000 Durham County, NC, 5.20%, 3/1/2004 (3/1/2002 @ 102) AAA 366,905
--------------------------------------------------------
250,000 Durham County, NC, 5.20%, 3/1/2005 (3/1/2002 @ 101.5) AAA 260,805
--------------------------------------------------------
225,000 East Carolina University, 5.375%, 11/1/2001 AAA 237,521
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 200,000 East Carolina University, 5.375%, 11/1/2003
(11/1/2002 @ 102) AAA $ 209,786
--------------------------------------------------------
500,000 Fayetteville, NC, Public Works Commission, 4.60%,
3/1/2005 (3/1/2003 @ 102) AAA 485,415
--------------------------------------------------------
250,000 Fayetteville, NC, Public Works Commission, 5.90%,
3/1/2007 (3/1/2002 @ 102) AAA 267,648
--------------------------------------------------------
600,000 Forsyth County, NC, 6.25%, 3/1/2005 (3/1/2001 @ 102) AA1 661,596
--------------------------------------------------------
250,000 Forsyth County, NC, 5.60%, 8/1/2007 (8/1/2002 @ 102) AA1 263,865
--------------------------------------------------------
150,000 Forsyth County, NC, 5.40%, 6/1/2005 (6/1/2002 @ 101.5) AA1 157,617
--------------------------------------------------------
750,000 Gastonia, NC, 5.25%, GO Bonds, 4/1/2006
(4/1/2003 @ 101.5) AAA 771,225
--------------------------------------------------------
500,000 Goldsboro, NC, 5.285%, 6/1/2005 (6/1/2003 @ 101) A1 513,475
--------------------------------------------------------
500,000 Goldsboro, NC, 5.50% GO Bonds, 6/1/2008
(6/1/2003 @ 102) A1 512,570
--------------------------------------------------------
650,000 Goldsboro, NC, 5.50% GO Bonds, 6/1/2009
(6/1/2003 @ 102) A1 665,691
--------------------------------------------------------
100,000 Granville County, NC, 6.00%, 2/1/2002 A 108,656
--------------------------------------------------------
500,000 Greensboro, NC, 6.30%, 3/1/2012 (3/1/2002 @ 102) AA1 546,555
--------------------------------------------------------
250,000 Greensboro, NC, 6.25%, 3/1/2008 (3/1/2002 @ 102) AA1 273,865
--------------------------------------------------------
500,000 Greensboro, NC, 5.20%, 5/1/2006 (5/1/2003 @ 102) AA 518,050
--------------------------------------------------------
475,000 Greenville, NC, 4.80%, 3/1/2003 AA 476,724
--------------------------------------------------------
50,000 Guilford County, NC, 6.20%, 2/1/2005 (2/1/2001 @ 102) AA1 54,943
--------------------------------------------------------
350,000 Henderson County, NC, 6.50% GO Bonds, 6/1/2007
(6/1/2001 @ 102) A1 386,180
--------------------------------------------------------
250,000 Henderson County, NC, 6.50%, 6/1/2009 (6/1/2001 @ 102) A1 274,032
--------------------------------------------------------
250,000 Iredell County, NC, Statesville School Project, 6.125%
OID, 6/1/2007 (6/1/2001 @ 102) AAA 271,845
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 675,000 Lee County, NC, 6.00% GO Bonds, 2/1/2004
(2/1/2002 @ 101) A1 $ 731,828
--------------------------------------------------------
100,000 Lee County, NC, 6.00%, 2/1/2005 (2/1/2002 @ 101.5) A1 108,123
--------------------------------------------------------
250,000 Mecklenburg County, NC, 5.00%, 3/1/96 AAA 259,305
--------------------------------------------------------
125,000 Mecklenburg County, NC, 5.00%, 3/1/97 AAA 130,279
--------------------------------------------------------
500,000 Mecklenburg County, NC, 4.25%, 4/1/2006 AAA 473,700
--------------------------------------------------------
280,000 Mecklenburg County, NC, 4.70%, 4/1/2007
(4/1/2003 @ 102) AAA 274,274
--------------------------------------------------------
150,000 Mecklenburg County, NC, 6.25%, 1/1/2010
(1/1/2002 @ 102) AAA 168,353
--------------------------------------------------------
750,000 Moore County, NC, 4.80%, 6/1/2006 A1 737,543
--------------------------------------------------------
250,000 Mooresville Grade School District, 6.30%, COPS
(AMBAC Insured), 10/1/2009 (10/1/2002 @ 102) AAA 270,815
--------------------------------------------------------
200,000 New Hanover County, NC, 7.10%, 6/1/2008 AA 222,522
--------------------------------------------------------
300,000 North Carolina Educational Authority (Elon College
Project), 6.375%, 1/1/2007 (1/1/2002 @ 102) AAA 326,796
--------------------------------------------------------
200,000 North Carolina Medical Care Commission 5.95%,
(Presbyterian Hospital), 10/1/2007 (10/2/2002 @ 102) AA 207,916
--------------------------------------------------------
500,000 North Carolina Medical Care Commission,
(Mission Hospital Project), 5.50%, 10/1/2011 AAA 502,545
--------------------------------------------------------
480,000 North Carolina Eastern Municipal Power Agency,
6.00% OID Revenue Bonds (FGIC Insured), 1/1/2009
(1/1/2003 @ 102) AAA 509,525
--------------------------------------------------------
750,000 North Carolina Eastern Municipal Power Agency, 7.25% OID
Revenue Bonds, 1/1/2021 (1/1/97 @ 102) AAA 872,869
--------------------------------------------------------
500,000 North Carolina Eastern Municipal Power Agency, 9.278%
Revenue Bonds (RIB), 1/1/2025 AAA 550,625
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 250,000 North Carolina Municipal Power Agency Catawba, 6.00%,
1/1/2008 AAA $ 271,085
--------------------------------------------------------
250,000 North Carolina Municipal Power Agency Catawba, 10.50%,
1/1/2010 AAA 368,730
--------------------------------------------------------
500,000 North Carolina Municipal Power Agency Catawba, 6.20% OID
Revenue Bonds, 1/1/2018 (1/1/96 @ 101) AAA 532,580
--------------------------------------------------------
190,000 North Carolina State, 5.75%, 3/1/99 AAA 204,759
--------------------------------------------------------
225,000 North Carolina State, 6.10%, 3/1/99 AAA 245,941
--------------------------------------------------------
100,000 North Carolina State, 6.10%, 3/1/2005 (3/1/2002 @ 101.5) AAA 109,634
--------------------------------------------------------
535,000 North Carolina State, 6.20%, 3/1/2009 (3/1/2002 @ 102) AAA 591,950
--------------------------------------------------------
500,000 Orange County, NC, 5.10% GO Bonds, 6/1/2000 AA1 526,535
--------------------------------------------------------
250,000 Person County, NC, 5.40%, 2/1/2009 (2/1/2003 @ 102) A1 257,168
--------------------------------------------------------
250,000 Pitt County, NC, 6.05%, COPS (FGIC Insured), 4/1/98 AAA 268,142
--------------------------------------------------------
500,000 Pitt County, NC, 5.10% GO Bonds, 2/1/2006
(2/1/2003 @ 102) AA 507,210
--------------------------------------------------------
500,000 Pitt County, NC, 5.10% GO Bonds, 2/1/2007
(2/1/2003 @ 102) AA 502,825
--------------------------------------------------------
500,000 Randolph County, NC, 6.20%, 5/1/2005
(5/1/2002 @ 101.5) A1 551,920
--------------------------------------------------------
250,000 Rocky Mount, NC, 6.10% GO Bonds, 5/1/2005
(5/1/2002 @ 101.5) A 270,450
--------------------------------------------------------
350,000 Rocky Mount, NC, 6.10%, 5/1/2006 A 377,647
--------------------------------------------------------
250,000 Rowan County, NC, 5.25%, 12/1/99 A 257,247
--------------------------------------------------------
500,000 Rowan County, NC, 6.25%, COPS, 12/1/2007 A 515,070
--------------------------------------------------------
500,000 Rutherford County, NC, 5.00%, 6/1/2002 AAA 518,570
--------------------------------------------------------
275,000 Rutherford County, NC, 5.70%, 6/1/2009 AAA 299,010
--------------------------------------------------------
450,000 Shelby, NC, 5.00%, 3/1/2010 AA 436,329
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 150,000 Union County, NC, 5.80%, 3/1/2004 (3/1/2002 @ 101) A1 $ 160,911
--------------------------------------------------------
500,000 Union County, NC, 5.80%, 3/1/2006 (3/1/2002 @ 102) A1 533,385
--------------------------------------------------------
500,000 University of North Carolina at Charlotte, 5.00% Revenue
Bonds, 1/1/2007 AAA 489,635
--------------------------------------------------------
100,000 University of North Carolina at Greensboro, 5.60% (MBIA
Insured), 4/1/2008 (4/1/2002 @ 102) AAA 104,296
--------------------------------------------------------
500,000 Wake County, NC, 6.90% Revenue Bonds (Carolina Power &
Light Co.), 4/1/2009 (4/1/2000 @ 102) A2 540,985
--------------------------------------------------------
100,000 Washington, NC, 6.10% GO Water Bonds (MBIA Insured),
2/1/2008 (2/1/2002 @ 102) AAA 106,544
--------------------------------------------------------
375,000 Watauga County, NC, 4.70% GO Bonds, 6/1/2012
(6/1/2003 @ 102) AA 338,422
--------------------------------------------------------
75,000 Wayne County, NC, 5.90%, 2/1/2004 (2/1/2002 @ 101) A 80,497
--------------------------------------------------------
410,000 Winston-Salem, NC, 5.25%, COPS (Series A), 10/1/96 AA1 429,413
--------------------------------------------------------
260,000 Winston-Salem, NC, 6.20%, 4/1/2005 (4/1/2002 @ 101.5) AA1 289,650
-------------------------------------------------------- -----------
Total 36,067,026
-------------------------------------------------------- -----------
</TABLE>
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT ISSUE OR S&P* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ----------------------------------------------------------------------
PUERTO RICO--1.9%
--------------------------------------------------------
$ 500,000 Puerto Rico Electric & Power, 5.75% (FSA Insured),
7/1/2007 (7/1/2002 @ 101.5) AAA $ 532,200
--------------------------------------------------------
200,000 Puerto Rico, Floating Rate Revenue Bonds (RIB),
(MBIA Insured), 1/1/2015 AAA 210,750
-------------------------------------------------------- -----------
Total 742,950
-------------------------------------------------------- -----------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $35,568,127) 36,809,976
-------------------------------------------------------- -----------
CASH & CASH EQUIVALENTS--2.9%
- ----------------------------------------------------------------------
99,999 North Carolina Daily Tax-Free Inc. 99,999
--------------------------------------------------------
1,043,800 PNC, NC 1,043,800
-------------------------------------------------------- -----------
TOTAL CASH & CASH EQUIVALENTS (AT NET ASSET VALUE) 1,143,799
-------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $38,111,926) $39,353,775+
-------------------------------------------------------- -----------
</TABLE>
* See Notes to Portfolio of Investments.
+ The cost of investments for federal tax purposes amounts to $38,111,926. The
net unrealized appreciation of investments on a federal tax basis amounts to
$1,241,849, which is comprised of $1,349,495 appreciation and $107,646
depreciation at November 30, 1993.
Note: The categories of investments are shown as a percentage of net assets
($38,864,259) at November 30, 1993.
111 CORCORAN NORTH CAROLINA
MUNICIPAL SECURITIES FUND
- --------------------------------------------------------------------------------
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
COPS -- Certificates of Participation
FGIC -- Financial Guaranty Insurance Co.
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Investors Assurance
NR -- Not Rated
OID -- Original Issue Discount
RIB -- Residual Interest Bond
VRDNs -- Variable Rate Demand Notes
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
NOTES TO PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1993
- --------------------------------------------------------------------------------
EXPLANATORY NOTES TO CREDIT RATINGS
The three highest ratings of Moody's Investors Service, Inc. ("Moody's") for
Municipal Bonds are Aaa, Aa, and A. Bonds rated Aaa are judged to be of the
"best quality." The rating of Aa is assigned to bonds which are of "high quality
by all standards," but as to which margins of protection or other elements make
long-term risks appear somewhat larger than Aaa-rated bonds. The Aaa and
Aa-rated bonds comprise what are generally known as "high-grade bonds." Bonds
which are rated A by Moody's possess many favorable investment attributes and
are considered "upper medium-grade obligations." Factors giving security to
principal and interest of A-rated bonds are considered adequate, but elements
may be present which suggest a susceptibility to impairment sometime in the
future. The bonds in the A group which Moody's believes possess the strongest
investment attributes are designated by the symbol A1.
Standard & Poor's Corporation ("Standard & Poor's) highest rating for municipal
commercial paper is A-1. Short-term municipal commercial paper rated A-1 is the
best quality.
The three highest ratings of Standard & Poor's for municipal bonds are AAA
(Prime), AA (High Grade), and A (Good Grade). Bonds rated AAA have the highest
rating assigned by Standard & Poor's to a debt obligation. The capacity to pay
interest and repay principal is extremely strong. Bonds rated AA have a very
strong capacity to pay interest and repay principal, and differ from the highest
rated issues only by a small degree. Bonds rated A have a strong capacity to pay
interest and repay principal, although they are somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than bonds
in higher rated categories. The ratings AA to A may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.
NR indicates the bonds are not currently rated by Moody's or Standard & Poor's.
However, management considers them to be of comparable quality to the
above-mentioned quality ratings.
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments, at value (Note 2A) (identified and tax cost,
$38,111,926) $39,353,775
- ---------------------------------------------------------------------------------
Interest receivable 610,429
- ---------------------------------------------------------------------------------
Receivable for Fund shares sold 311,877
- ---------------------------------------------------------------------------------
Receivable for investments sold 222,730
- ---------------------------------------------------------------------------------
Prepaid/deferred expenses (Note 2E) 16,729
- --------------------------------------------------------------------------------- -----------
Total assets 40,515,540
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $1,318,237
- --------------------------------------------------------------------
Payable to bank 129,169
- --------------------------------------------------------------------
Dividends payable 118,749
- --------------------------------------------------------------------
Accrued expenses and other liabilities 85,126
- -------------------------------------------------------------------- ----------
Total liabilities 1,651,281
- --------------------------------------------------------------------------------- -----------
NET ASSETS for 3,662,549 shares of beneficial interest outstanding $38,864,259
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid-in capital $37,558,659
- ---------------------------------------------------------------------------------
Unrealized appreciation of investments 1,241,849
- ---------------------------------------------------------------------------------
Accumulated undistributed net realized gain on investments 63,751
- --------------------------------------------------------------------------------- -----------
Total $38,864,259
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Price Per Share:
($38,864,259 / 3,662,549 shares of beneficial interest outstanding) $10.61
- --------------------------------------------------------------------------------- -----------
Computation of Offering Price:
Offering Price Per Share (100/95.5 of $10.61)* $11.11
- --------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest income (Note 2B) $ 825,478
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee (Note 5) $121,128
- ----------------------------------------------------------------------
Trustees' fees 2,021
- ----------------------------------------------------------------------
Administrative personnel and services (Note 5) 25,833
- ----------------------------------------------------------------------
Custodian fees 7,279
- ----------------------------------------------------------------------
Portfolio recordkeeping, transfer and dividend disbursing
agent fees (Note 5) 41,465
- ----------------------------------------------------------------------
Legal fees 3,509
- ----------------------------------------------------------------------
Auditing fees 7,388
- ----------------------------------------------------------------------
Registration fees 12,576
- ----------------------------------------------------------------------
Printing and postage 6,926
- ----------------------------------------------------------------------
Insurance premiums 2,531
- ----------------------------------------------------------------------
Miscellaneous 3,525
- ---------------------------------------------------------------------- --------
Total expenses 234,181
- ----------------------------------------------------------------------
Deduct--Waiver of investment advisory fee (Note 5) 121,128
- ---------------------------------------------------------------------- --------
Net expenses 113,053
- --------------------------------------------------------------------------------- ----------
Net investment income 712,425
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investment transactions (identified cost basis)-- 70,375
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 541,761
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 612,136
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,324,561
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
--------------------------
1994** 1993*
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------------------
OPERATIONS--
- ------------------------------------------------------------------
Net investment income $ 712,425 $ 637,476
- ------------------------------------------------------------------
Change in unrealized appreciation of investments 541,761 700,088
- ------------------------------------------------------------------
Net realized gain/loss from investment transactions ($70,375 net
gain and $6,624 net loss, as computed for federal tax purposes)
(Note 2C) 70,375 (6,624)
- ------------------------------------------------------------------ ----------- -----------
Change in net assets resulting from operations 1,324,561 1,330,940
- ------------------------------------------------------------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- ------------------------------------------------------------------
Dividends to shareholders from net investment income (712,425) (637,476)
- ------------------------------------------------------------------ ----------- -----------
FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- ------------------------------------------------------------------
Proceeds from sales of shares 12,309,012 29,520,071
- ------------------------------------------------------------------
Net asset value of shares issued to shareholders electing to
receive payment of dividends in Fund shares 95,741 45,674
- ------------------------------------------------------------------
Cost of shares redeemed (2,303,815) (2,108,024)
- ------------------------------------------------------------------ ----------- -----------
Change in net assets from Fund share transactions 10,100,938 27,457,721
- ------------------------------------------------------------------ ----------- -----------
Change in net assets 10,713,074 28,151,185
- ------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------
Beginning of period 28,151,185 --
- ------------------------------------------------------------------ ----------- -----------
End of period $38,864,259 $28,151,185
- ------------------------------------------------------------------ ----------- -----------
</TABLE>
* For the period from July 22, 1992 (date of initial public investment) to May
31, 1993.
** Six months ended November 30, 1993 (unaudited)
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
---------------------
1994*** 1993**
------- -------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.36 $ 10.00
- ----------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------
Net investment income 0.24 0.37
- ----------------------------------------------------------------
Net realized and unrealized gain/(loss) on investments 0.25 0.36
- ---------------------------------------------------------------- ------ -------
Total from investment operations 0.49 0.73
- ----------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------
Dividends to shareholders from net investment income (0.24 ) (0.37)
- ---------------------------------------------------------------- ------ -------
NET ASSET VALUE, END OF PERIOD $10.61 $ 10.36
- ---------------------------------------------------------------- ------ -------
TOTAL RETURN* 4.70 % 7.37%
- ----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------
Expenses 0.70 %(a) 0.70%(a)
- ----------------------------------------------------------------
Net investment income 4.41 %(a) 4.51%(a)
- ----------------------------------------------------------------
Expense adjustment (b) 0.75 %(a) 0.99%(a)
- ----------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------
Net assets, end of period (000 omitted) $38,864 $28,151
- ----------------------------------------------------------------
Portfolio turnover rate 8 % 17%
- ----------------------------------------------------------------
</TABLE>
* Based on net asset value which does not reflect the sales load or redemption
fee, if applicable.
** Reflects operations for the period from July 22, 1992 (date of initial
public investment) to May 31, 1993.
*** Six months ended November 30, 1993 (unaudited).
(a) Computed on an annualized basis.
(b) This expense decrease is reflected in both the expense and net investment
income ratios shown above (Note 5).
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
The 111 Corcoran Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company with two
portfolios. The financial statements included herein present only those of the
111 Corcoran North Carolina Municipal Securities Fund (the "Fund"). The
financial statements of the other Portfolio are presented separately. The assets
of each Portfolio are segregated and a shareholder's interest is limited to the
Portfolio in which shares are held.
(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.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Municipal bonds are valued by an independent pricing service
taking into consideration yield, liquidity, risk, credit, quality, coupon maturity, type
of issue, or any other factors or market data it deems relevant in determining valuations
for normal institutional size trading units of debt securities. The independent pricing
service does not rely exclusively on quoted prices. Debt securities with remaining
maturities of sixty days or less are stated at cost, which approximates value.
Since the Fund invests a substantial portion of its assets in issuers located in one
state, it will be more susceptible to factors adversely affecting issuers in that state,
than would be a comparable general tax--exempt mutual fund. The risk associated with such
factors is mitigated, however, by the fact that at November 30, 1993, 13.1% of the
securities in the portfolio of investments are backed by letters of credit or bond
insurance of various financial institutions and financial guaranty assurance agencies.
The aggregate percentage of that portion of the Fund's portfolio which is credit-enhanced
by a given financial institutional or agency ranges from 1.3% to 4.1% of total
investments.
B. INCOME--Interest income is recorded on the accrual basis and includes discount earned,
less any premium.
C. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its taxable income. Accordingly, no provision
for federal tax is necessary.
At May 31, 1993, the Fund, for federal tax purposes, had a capital loss carryforward of
$852 which will reduce the Fund's taxable income arising from a future net realized gain
on investments, if any, to the extent permitted by the Internal Revenue Code, and thus
will reduce the amount of the
</TABLE>
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
distributions to shareholders which would otherwise be necessary to relieve the Fund of
any liability for federal tax. Pursuant to the Code, such capital loss carryforward will
expire in 2001.
Additionally, net capital losses of $5,772 attributable to security transactions incurred
after October 31, 1992, are treated as arising on June 1, 1993, the first day of the
Fund's next taxable year.
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. The Fund records a when-issued security and the related
liability on the trade date. Until the securities are received and paid for, the Fund
will maintain security positions such that sufficient liquid assets will be available to
make payment for the securities purchased. Securities purchased on a when-issued or
delayed delivery basis are marked to market daily and begin earning interest on the
settlement date.
E. DEFERRED EXPENSES--The costs incurred by the Fund with respect to registration of its
shares in its first fiscal year, excluding the initial expense of registering the shares,
have been deferred and are being amortized using the straight-line method over a period
of five years from the Fund's commencement date.
F. OTHER--Investment transactions are accounted for on the date of the transaction.
</TABLE>
(3) DIVIDENDS
Dividends from net investment income are declared daily and paid monthly.
Distributions of any net realized capital gains are made at least once every
twelve months. Dividends and capital gain distributions, if any, are recorded on
the ex-dividend date.
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Board of Trustees ("Trustees") to issue an
unlimited number of full and fractional shares of beneficial interest (without
par value). Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
YEAR ENDED MAY 31,
----------------------
1994** 1993*
- ---------------------------------------------------------------------- --------- ---------
<S> <C> <C>
Shares outstanding, beginning of period 2,716,198 --
- ----------------------------------------------------------------------
Shares sold 1,153,316 2,919,252
- ----------------------------------------------------------------------
Shares issued to shareholders electing to receive payment of
distributions in Fund shares 9,035 4,477
- ----------------------------------------------------------------------
Shares redeemed (216,000) (207,531)
- ---------------------------------------------------------------------- --------- ---------
Shares outstanding, end of period 3,662,549 2,716,198
- ---------------------------------------------------------------------- --------- ---------
</TABLE>
* For the period from July 22, 1992 (date of initial public investment) to May
31, 1993.
** Six months ended November 30, 1993.
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Central Carolina Bank, the Fund's investment adviser ("Adviser"), receives for
its services an annual investment advisory fee equal to .75 of 1% of the Fund's
average daily net assets. The Adviser may voluntarily choose to waive a portion
of its fee or reimburse certain operating expenses of the Fund. The Adviser can
terminate any voluntary waiver of its fee or reimbursement of expenses at any
time at its sole discretion. For the six-month period ended November 30, 1993,
the Adviser earned $121,128, all of which was voluntarily waived.
Federated Administrative Services ("FAS") provides the Fund with administrative
personnel and services, and receives for its services an annual fee equal to .15
of 1% on the first $250 million of average aggregate daily net assets of the
Trust; .125 of 1% on the next $250 million; .10 of 1% on the next $250 million;
and .075 of 1% on the average aggregate daily net assets in excess of $750
million. FAS may voluntarily choose to waive a portion of its fee. For the
six-month period ended November 30, 1993, FAS earned $25,833.
Organizational expenses of $43,033 were borne initially by FAS. The Fund has
agreed to reimburse FAS during the five year period from July 15, 1992, the date
the Trust's portfolio became effective. For the six-month period ended November
30, 1993, the Fund paid FAS $2,869.
Federated Services Company ("FSC"), the Fund's portfolio recordkeeper, transfer
agent and dividend disbursing agent, earned $41,465 for the six-month period
ended November 30, 1993.
Certain Officers and Trustees of the Trust are also Officers and Directors of
the companies mentioned in this Note to the financial statements.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
six-month period ended November 30, 1993, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
PURCHASES $12,316,234
- ------------------------------------------------------------------------------- -----------
SALES $ 2,364,867
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Edward C. Gonzales
James E. Dowd President and Treasurer
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr. Vice President
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
Gregor F. Meyer Joseph S. Machi
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts John W. McGonigle
Vice President and Secretary
John A. Staley, IV
Vice President
David M. Taylor
Assistant Treasurer
C. Grant Anderson
Assistant Secretary
</TABLE>
Mutual funds are not obligations of or insured by any bank nor are they insured
by the federal government or any of its agencies. Investment in these shares
involves risk, including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Fund's prospectus which contains facts concerning its
objective and policies, management fees, expenses and other information.
