PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present your Semi-Annual Report to Shareholders for 111 Corcoran
Bond Fund. It covers the six-month period ended November 30, 1995.
This report contains important information that includes an Investment Review by
the Fund's portfolio manager, a complete listing of the Fund's Portfolio of
Investments, and its Financial Statements.
To help your investment earn income, 111 Corcoran Bond Fund invests primarily in
U.S. government bonds and corporate bonds rated A or better by a nationally
recognized rating agency.* At the end of the report period, the Fund's assets
were primarily invested in government obligations (68.1%), followed by corporate
bonds (29.2%), and short-term obligations (2.2%).
During the six-month period ended November 30, 1995, 111 Corcoran Bond Fund
achieved a total return of 5.70% based on net asset value.** The Fund paid a
total of $0.33 in income per share, while its share price rose from $10.00 on
the first day of the period to $10.23 on the last day of the period. The fund's
net assets stood at $89.2 million at the end of the period.
Thank you for selecting 111 Corcoran Bond Fund as a way to put your money to
work pursuing income. We will continue to keep you informed about your Fund's
progress.
Sincerely,
LOGO
Edward C. Gonzales
President
January 15, 1996
* Ratings are according to Standard & Poor's Ratings Group.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Total return for the
period ended November 30, 1995, which reflects the Fund's sales charge was
0.96%.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
After a nominal selloff in July and August the bond market had an almost
uninterrupted rally that took yields to their yearly lows. The 10-year treasury
yield closed under 5.60% after trading at 7.85% earlier in the year.
Total returns of bonds in 1995 were quite good and we were pleased with the
fund's total return of 5.70%*, for the six months ended November 30, 1995.
We are cautiously optimistic about 1996. Inflation continues to be under control
and the economy is growing slowly. Additionally, the Federal Reserve Board has
shown it will accommodate the economy with lower rates.
Long term, the trend in rates still appears to be lower. The population is aging
dramatically and this sector typically spends less and saves more. Thus the
supply and demand for credit is favorable for lower interest rates.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
111 CORCORAN BOND FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
LONG-TERM INVESTMENTS--97.2%
- --------------------------------------------------------------------------------
CORPORATE BONDS--29.2%
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--.6%
----------------------------------------------------------------
$ 500,000 Sears Credit Account Trust, 8.60%, 1991B, 5/15/1998 $ 505,655
---------------------------------------------------------------- -----------
AUTO/TRUCK MANUFACTURER--1.3%
----------------------------------------------------------------
1,000,000 Ford Motor Co., 9.00%, 9/15/2001 1,133,950
---------------------------------------------------------------- -----------
BANKING--1.7%
----------------------------------------------------------------
1,500,000 Bankers Trust NY Corp., 7.25%, 1/15/2003 1,557,525
---------------------------------------------------------------- -----------
CONSUMER PRODUCTS--4.5%
----------------------------------------------------------------
1,000,000 Joseph E. Seagram & Sons, Inc., 9.75%, 6/15/2000 1,019,790
----------------------------------------------------------------
1,000,000 Philip Morris Cos., Inc., 9.00%, 1/1/2001 1,121,470
----------------------------------------------------------------
1,000,000 Philip Morris Cos., Inc., 7.125%, 8/15/2002 1,040,220
----------------------------------------------------------------
750,000 RJR Nabisco Inc., 8.00%, 1/15/2000 794,092
---------------------------------------------------------------- -----------
Total 3,975,572
---------------------------------------------------------------- -----------
FINANCE--COMMERCIAL--2.2%
----------------------------------------------------------------
1,750,000 Ford Capital BV, 9.375%, 5/15/2001 2,003,418
---------------------------------------------------------------- -----------
FINANCE--INSURANCE--2.6%
----------------------------------------------------------------
500,000 AON Corp., 6.875%, 10/1/1999 514,705
----------------------------------------------------------------
500,000 Cigna Corp., 7.40%, 1/15/2003 524,870
----------------------------------------------------------------
1,000,000 Continental Corp., 7.25%, 3/1/2003 1,022,950
----------------------------------------------------------------
250,000 Kemper Corp., 8.80%, 11/1/1998 266,900
---------------------------------------------------------------- -----------
Total 2,329,425
---------------------------------------------------------------- -----------
FINANCIAL SECURITIES--5.0%
----------------------------------------------------------------
2,000,000 Bear Stearns Cos., Inc., 6.625%, 1/15/2004 2,008,120
----------------------------------------------------------------
500,000 Merrill Lynch & Co., Inc., 4.75%, 6/24/1996 497,150
----------------------------------------------------------------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS--CONTINUED
- --------------------------------------------------------------------------------
FINANCIAL SECURITIES--CONTINUED
----------------------------------------------------------------
$1,000,000 Merrill Lynch & Co., Inc., 6.25%, 10/15/2008 $ 969,020
----------------------------------------------------------------
1,000,000 Salomon, Inc., 6.875%, 12/15/2003 979,590
---------------------------------------------------------------- -----------
Total 4,453,880
---------------------------------------------------------------- -----------
INDUSTRIAL--1.7%
----------------------------------------------------------------
1,500,000 Hanson Overseas BV, 6.75%, 9/15/2005 1,532,745
---------------------------------------------------------------- -----------
METALS--0.7%
----------------------------------------------------------------
500,000 Reynolds Metals Co., 9.00%, 8/15/2003 576,680
---------------------------------------------------------------- -----------
MULTI-INDUSTRY--1.0%
----------------------------------------------------------------
750,000 Loews Corp., 8.875%, 4/15/2011 877,972
---------------------------------------------------------------- -----------
OIL--0.7%
----------------------------------------------------------------
500,000 Pennzoil Co., conv. deb., 6.50%, 1/15/2003 616,250
---------------------------------------------------------------- -----------
RETAIL--1.1%
----------------------------------------------------------------
500,000 Sears Roebuck & Co., 9.47%, 1/23/1996 503,340
----------------------------------------------------------------
500,000 Sears Roebuck & Co., MTN, 6.70%, 7/14/1997 506,635
---------------------------------------------------------------- -----------
Total 1,009,975
---------------------------------------------------------------- -----------
UTILITIES--6.1%
----------------------------------------------------------------
1,000,000 Gulf States Utilities Co., 6.77%, 8/1/2005 997,750
----------------------------------------------------------------
750,000 Hydro Quebec, 6.375%, 1/15/2002 755,303
----------------------------------------------------------------
1,000,000 Pacific Gas & Electric Co., 7.75%, 6/30/2004 1,087,600
----------------------------------------------------------------
1,500,000 Southwestern Bell Telephone Co., 7.375%, 5/1/2012 1,548,690
----------------------------------------------------------------
1,000,000 West Penn Power Co., 7.875%, 12/1/2004 1,064,060
---------------------------------------------------------------- -----------
Total 5,453,403
---------------------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $25,275,322) 26,026,450
---------------------------------------------------------------- -----------
GOVERNMENT OBLIGATIONS--68.1%
- --------------------------------------------------------------------------------
FARM CREDIT SYSTEM FINANCIAL ASSISTANCE CORP.--0.6%
----------------------------------------------------------------
500,000 9.20%, 9/27/2005 564,685
---------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
GOVERNMENT OBLIGATIONS--CONTINUED
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK--8.8%
----------------------------------------------------------------
$ 750,000* 3.54%, Structured Note, 12/2/1995 $ 700,103
----------------------------------------------------------------
500,000* 4.125%, Structured Note, 12/3/1995 472,945
----------------------------------------------------------------
1,000,000 5.738%, Structured Note, 12/23/1995 974,250
----------------------------------------------------------------
1,000,000* 3.598%, Structured Note, 2/25/1996 923,110
----------------------------------------------------------------
1,800,000* 5.05%, Structured Note, 3/1/1996 1,791,342
----------------------------------------------------------------
1,000,000 6.25%, Step-up, 5/11/1998 1,012,900
----------------------------------------------------------------
1,000,000 6.30%, Structured Note, 11/28/2000 1,004,688
----------------------------------------------------------------
1,000,000 6.33%, 11/20/2001 1,003,750
---------------------------------------------------------------- -----------
Total 7,883,088
---------------------------------------------------------------- -----------
FEDERAL HOME LOAN MORTGAGE CORPORATION--28.9%
----------------------------------------------------------------
1,000,000* 4.75%, Structured Note, 9/20/1996 978,220
----------------------------------------------------------------
1,000,000 5.90%, 4/21/2000 990,870
----------------------------------------------------------------
1,000,000 5.69%, 11/29/2000 981,870
----------------------------------------------------------------
500,000 6.80%, 9/18/2002 500,475
----------------------------------------------------------------
217,649 5.00%, Series 1194F, 11/15/2005 214,452
----------------------------------------------------------------
1,500,000 7.50%, Series 1143VD, 1/15/2006 1,568,640
----------------------------------------------------------------
1,000,000 6.00%, Series 13669G, 5/15/2006 984,390
----------------------------------------------------------------
1,000,000 8.00%, Series 1033G, 1/15/2006 1,053,190
----------------------------------------------------------------
2,500,000 6.25%, Series 1506G, 10/15/2006 2,481,400
----------------------------------------------------------------
4,000,000 8.00%, Series 1171G, 11/15/2006 4,288,880
----------------------------------------------------------------
1,250,000 6.00%, Series 1337C, 12/15/2006 1,236,900
----------------------------------------------------------------
1,000,000 7.00%, Series 1187H, 12/15/2006 1,024,320
----------------------------------------------------------------
84,445 6.50%, Series 1422E, 2/15/2007 84,832
----------------------------------------------------------------
1,000,000 7.00%, Series 1338J, 2/15/2007 1,020,300
----------------------------------------------------------------
1,500,000 6.25%, Series 1553E, 4/15/2007 1,505,775
----------------------------------------------------------------
1,000,000 7.00%, Series 1341K, 8/15/2007 1,025,170
----------------------------------------------------------------
1,000,000 7.00%, Series 1458J, 8/15/2007 1,033,120
----------------------------------------------------------------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
GOVERNMENT OBLIGATIONS--CONTINUED
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--CONTINUED
----------------------------------------------------------------
$1,000,000 6.50%, Series 1551E, 9/15/2007 $ 1,018,070
----------------------------------------------------------------
176,459 6.50%, Series 1452C, 12/15/2007 171,447
----------------------------------------------------------------
1,000,000 7.00%, Series 1465GA, 2/15/2008 1,029,290
----------------------------------------------------------------
400,000 7.00%, Series 1324VE, 8/15/2008 413,064
----------------------------------------------------------------
1,000,000 7.00%, Series 1477ID, 11/15/2009 1,026,190
----------------------------------------------------------------
595,000 7.00%, Series 1468M, 1/15/2010 611,606
----------------------------------------------------------------
500,000 7.00%, Series 1228H, 2/15/2022 502,565
---------------------------------------------------------------- -----------
Total 25,745,036
---------------------------------------------------------------- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--11.7%
----------------------------------------------------------------
1,700,000* 6.40%, Structured Note, 12/2/1995 1,698,980
----------------------------------------------------------------
1,275,000* 9.4865%, Structured Note, 12/29/1995 1,320,518
----------------------------------------------------------------
250,000* Principal Strip, 11/22/2001 (Callable 11/22/1996 @ 100) 236,883
----------------------------------------------------------------
2,000,000 7.30%, 10/28/2002 2,042,720
----------------------------------------------------------------
2,000,000 6.625%, 4/10/2003 2,006,040
----------------------------------------------------------------
1,000,000 6.48%, 2/18/2004 992,620
----------------------------------------------------------------
2,000,000 8.25%, 10/12/2004 2,146,620
---------------------------------------------------------------- -----------
Total 10,444,381
---------------------------------------------------------------- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--REMICS--14.3%
----------------------------------------------------------------
1,000,000 7.00%, REMIC, Series 199479G, 11/25/2004 1,040,870
----------------------------------------------------------------
1,450,000 7.50%, REMIC, Series 199248G, 11/25/2005 1,487,091
----------------------------------------------------------------
1,000,000 7.00%, REMIC, Series 199270H, 4/25/2006 1,016,770
----------------------------------------------------------------
1,000,000 7.50%, REMIC, Series 199336J, 5/25/2006 1,057,140
----------------------------------------------------------------
2,000,000 7.00%, REMIC, Series 1993139KD, 7/25/2006 2,072,900
----------------------------------------------------------------
1,000,000 8.00%, REMIC, Series 1991150G, 11/25/2006 1,061,010
----------------------------------------------------------------
1,000,000 7.25%, REMIC, Series 199250J, 12/25/2006 1,030,850
----------------------------------------------------------------
1,000,000 7.00%, REMIC, Series 199253G, 4/25/2007 1,022,220
----------------------------------------------------------------
1,000,000 6.00%, REMIC, Series 1993209H, 3/25/2008 974,590
----------------------------------------------------------------
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
GOVERNMENT OBLIGATIONS--CONTINUED
- --------------------------------------------------------------------------------
FEDERAL NATIONAL ASSOCIATION--REMICS--CONTINUED
----------------------------------------------------------------
$1,000,000 6.75%, REMIC, Series 199333H, 9/25/2008 $1,000,170
----------------------------------------------------------------
1,000,000 7.00%, REMIC, Series 1992124D, 4/25/2010 1,027,150
---------------------------------------------------------------- -----------
Total 12,790,761
---------------------------------------------------------------- -----------
MORTGAGE-BACKED SECURITIES--1.4%
----------------------------------------------------------------
1,250,000* CMC CMO, 5.76%, Series 1994CA14, 12/25/95 1,203,750
---------------------------------------------------------------- -----------
SOVEREIGN GOVERNMENT--2.4%
----------------------------------------------------------------
2,000,000 Ontario Province CDA, 7.375%, 1/27/2003 2,135,080
---------------------------------------------------------------- -----------
TOTAL GOVERNMENT OBLIGATIONS (IDENTIFIED COST, $59,203,679) 60,766,781
---------------------------------------------------------------- -----------
TOTAL LONG-TERM INVESTMENTS (IDENTIFIED COST, $84,479,001) 86,793,231
---------------------------------------------------------------- -----------
MUTUAL FUND SHARES--2.2%
- --------------------------------------------------------------------------------
1,940,144 Goldman Sachs Money Market Fund (at net asset value) 1,940,144
---------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $86,419,145) $88,733,375+
---------------------------------------------------------------- -----------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $86,419,145. The
net unrealized appreciation of investments on a federal tax basis amounts to
$2,314,230 which is comprised of $3,062,728 appreciation and $748,498
depreciation at November 30, 1995.
Note: The categories of investments are shown as a percentage of net assets
($89,281,913) at November 30, 1995.
* Current rate and next reset are shown.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
CMO -- Collateralized Mortgage Obligation
MTN -- Medium Term Note
REMIC -- Real Estate Mortgage Investment Conduit
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $86,419,145) $88,733,375
- --------------------------------------------------------------------------------
Income receivable 1,035,460
- --------------------------------------------------------------------------------
Receivable for shares sold 23,418
- --------------------------------------------------------------------------------
Deferred expenses 7,242
- -------------------------------------------------------------------------------- -----------
Total assets 89,799,495
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Income distribution payable $479,147
- ---------------------------------------------------------------------
Payable to Bank 23,331
- ---------------------------------------------------------------------
Accrued expenses 15,104
- --------------------------------------------------------------------- --------
Total liabilities 517,582
- -------------------------------------------------------------------------------- -----------
Net Assets for 8,731,228 shares outstanding $89,281,913
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $90,918,022
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 2,314,230
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,959,883)
- --------------------------------------------------------------------------------
Undistributed net investment income 9,544
- -------------------------------------------------------------------------------- -----------
Total Net Assets $89,281,913
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- --------------------------------------------------------------------------------
Net Asset Value Per Share ($89,281,913 / 8,731,228 shares outstanding) $10.23
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.50 of $10.23)* $10.71
- -------------------------------------------------------------------------------- -----------
</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, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $3,015,483
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $ 329,279
- ---------------------------------------------------------------------
Administrative personnel and services fee 65,861
- ---------------------------------------------------------------------
Custodian fees 5,479
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 13,018
- ---------------------------------------------------------------------
Directors'/Trustees' fees 2,334
- ---------------------------------------------------------------------
Auditing fees 8,602
- ---------------------------------------------------------------------
Legal fees 1,326
- ---------------------------------------------------------------------
Portfolio accounting fees 16,402
- ---------------------------------------------------------------------
Share registration costs 3,918
- ---------------------------------------------------------------------
Printing and postage 3,896
- ---------------------------------------------------------------------
Insurance premiums 4,172
- ---------------------------------------------------------------------
Miscellaneous 6,782
- --------------------------------------------------------------------- ---------
Total expenses 461,069
- ---------------------------------------------------------------------
Waiver--
- ---------------------------------------------------------------------
Waiver of investment advisory fee (329,279)
- --------------------------------------------------------------------- ---------
Net expenses 131,790
- --------------------------------------------------------------------------------- ----------
Net investment income 2,883,693
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 310,666
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 1,692,812
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 2,003,478
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $4,887,171
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
NOVEMBER 30, YEAR ENDED
1995 MAY 31,
(UNAUDITED) 1995
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $2,883,693 $ 6,245,751
- --------------------------------------------------------------
Net realized gain (loss) on investments ($310,666 net gain and
$2,849,640 net loss, respectively, as computed for federal tax
purposes) 310,666 (2,910,851)
- --------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,692,812 5,763,658
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from operations 4,887,171 9,098,558
- -------------------------------------------------------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Distributions from net investment income (2,883,693) (6,237,478)
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from distributions to
shareholders (2,883,693) (6,237,478)
- -------------------------------------------------------------- ----------- -----------
SHARE TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 7,343,736 8,941,154
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 101,894 283,034
- --------------------------------------------------------------
Cost of shares redeemed (7,281,937) (22,793,571)
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from share transactions 163,693 (13,569,383)
- -------------------------------------------------------------- ----------- -----------
Change in net assets 2,167,171 (10,708,303)
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 87,114,742 97,823,045
- -------------------------------------------------------------- ----------- -----------
End of period (including undistributed net investment income
of $9,544 and $9,544, respectively) $89,281,913 $87,114,742
- -------------------------------------------------------------- ----------- -----------
</TABLE>
(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>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED NOVEMBER 30,
NOVEMBER 30, -----------------------------------
1995 1995 1994 1993(A)
------------ ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $ 9.63 $10.13 $10.00
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------
Net investment income 0.33 0.66 0.63 0.49
- -----------------------------------------
Net realized and unrealized gain (loss)
on investments 0.23 0.37 (0.50) 0.13
- ----------------------------------------- --------- ------ ------ ------
Total from investment operations 0.56 1.03 0.13 0.62
- ----------------------------------------- --------- ------ ------ ------
LESS DISTRIBUTIONS
- -----------------------------------------
Distributions from net investment
income (0.33) (0.66) (0.63) (0.49)
- ----------------------------------------- --------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.23 $10.00 $ 9.63 $10.13
- ----------------------------------------- --------- ------ ------ -------
TOTAL RETURN(B) 5.70% 11.32% 1.21% 6.28%
- -----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------
Expenses 0.30%* 0.34% 0.50% 0.70%*
- -----------------------------------------
Net investment income 6.57%* 6.98% 6.32% 6.00%*
- -----------------------------------------
Expense waiver/reimbursement(c) 0.75%* 0.75% 0.75% 0.78%*
- -----------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------
Net assets, end of period (000 omitted) $89,282 $87,115 $97,823 $31,928
- -----------------------------------------
Portfolio turnover 14% 37% 76% 59%
- -----------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 15, 1992 (date of initial
public investment) to May 31, 1993.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
111 Corcoran Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The Trust consists of two diversified portfolios and one non-diversified
portfolio. The financial statements included herein present only those of 111
Corcoran Bond Fund (the "Fund"), a diversified portfolio. The financial
statements of the other portfolios 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. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Short-term securities with remaining maturities of
sixty days or less at the time of purchase may be valued at amortized cost,
which approximates fair market value. Investments in other open-end
investment companies are valued at net asset value. All other securities
are valued at prices provided by an independent pricing service.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal taxes are necessary.
At May 31, 1995, the Fund, for federal tax purposes, had a capital loss
carryforward of $2,897,993, which will reduce the Fund's taxable income
arising from future net realized gain on investments, if any, to the extent
permitted by the Code, and thus will reduce the amount of the 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 carryforwards will expire as
follows:
<TABLE>
<CAPTION>
EXPIRATION YEAR EXPIRATION AMOUNT
- ---------------- -------------------
<S> <C>
2002 $ 48,353
2003 $2,849,640
</TABLE>
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
Additionally, net capital losses of $1,285,410 attributable to security
transactions incurred after October 31, 1994 are treated as arising on June
1, 1995, the first day of the Fund's next taxable year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains 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.
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 its shares, have been deferred and are being
amortized using the straight-line method not to exceed a period of five
years from the Fund's commencement date.
OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1995 1995
- ------------------------------------------------------------- ------------ -----------
<S> <C> <C>
Shares sold 733,706 936,690
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 10,161 29,807
- -------------------------------------------------------------
Shares redeemed (167,973) (2,416,497)
- ------------------------------------------------------------- ----------- ----------
Net change resulting from share transactions 575,894 (1,450,000)
- ------------------------------------------------------------- ----------- ----------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Central Carolina Bank and Trust Company, the Fund's
investment adviser (the "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 any portion of its fee. The
Adviser can modify or terminate this voluntary waiver at any time at its sole
discretion.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
TRANSFER AND DIVIDEND DISBURSING AGENT AND PORTFOLIO ACCOUNTING FEES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund for which it receives
111 CORCORAN BOND FUND
- --------------------------------------------------------------------------------
a fee. This fee is based on the size, type, and number of accounts and
transactions made by shareholders.
FServ also maintains the Fund's accounting records for which it receives a fee.
The fee is based on the level of the Fund's average net assets for the period,
plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $46,033 were borne initially
by FAS. The Fund has agreed to reimburse FAS for the organizational expenses
during the five year period following May 1, 1992 (date the Fund became
effective). For the six months ended November 30, 1995, the Fund paid $6,230
pursuant to this agreement.
GENERAL--Certain of the Officers and Trustees of the Fund are Officers and
Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six
months ended November 30, 1995, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
Purchases $12,758,702
- ------------------------------------------------------------------------------- -----------
Sales $11,567,616
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. John W. McGonigle
Edward C. Gonzales Executive Vice President and Secretary
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
John E. Murray, Jr. Joseph S. Machi
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts David M. Taylor
Assistant Treasurer
C. Grant Anderson
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including 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.
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present your Semi-Annual Report to Shareholders for 111 Corcoran
Equity Fund. It covers the six-month period ended November 30, 1995.
This report contains important information that includes an Investment Review by
the Fund's portfolio manager, a complete listing of the Fund's Portfolio of
Investments, and its Financial Statements.
To help your investment grow in value over the long term, 111 Corcoran Equity
Fund invests in a diversified portfolio of high-quality stocks. The Fund's
portfolio includes stocks issued by many household names whose products and
services you may use every day.
During the six-month period, the economy was very favorable for stocks. As a
result, 111 Corcoran Equity Fund delivered a strong total return of 11.42% based
on net asset value for the period ended November 30, 1995.* The Fund paid a
total of $0.09 in income per share, while its share price rose from $11.48 on
the first day of the period to $12.70 on the last day of the period. The Fund's
net assets stood at $27.2 million at the end of the period.
Thank you for selecting 111 Corcoran Equity Fund as an investment that can help
your money grow over the long term. We will continue to keep you informed about
your Fund's progress.
Sincerely,
LOGO
Edward C. Gonzales
President
January 15, 1996
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Total return for the
period ended November 30, 1995, which reflects the Fund's sales charge was
6.41%.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
The U.S. financial markets turned in a strong performance for the period ended
November 30, 1995. The economic environment remains promising for stocks, with
economic growth at moderate levels, and inflation and interest rates relatively
low.
111 Corcoran Equity Fund delivered a total return of 11.42% based on net asset
value for the six-month period ended November 30, 1995.* The Fund benefited from
its concentration in financial stocks. However, a minimal exposure to technology
stocks and a decline in basic material stocks during October-November period
penalized the Fund's short-term performance.
As of November 30, 1995, 93.9% of the Fund's market value was invested in stocks
while the remaining was concentrated in short term obligations. Total Fund net
assets were approximately $27 million. The Fund's ten largest holdings were:
<TABLE>
<S> <C>
Columbia/HCA Healthcare Corp. 3.3%
ITT Corporation 3.1%
AT&T Corp. 3.1%
American Express Co. 2.9%
General Motors Corp. 2.7%
Jefferson-Pilot Corp. 2.6%
General Electric Co. 2.5%
Johnson & Johnson 2.4%
Questar Corp. 2.4%
Raychem Corp. 2.3%
</TABLE>
With low inflation and stable interest rates, the outlook for stock is quite
positive. Fund management continues to find opportunities in attractively valued
companies that offer earnings growth with significant income potential.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
111 CORCORAN EQUITY FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--94.4%
- --------------------------------------------------------------------------------
AEROSPACE--1.9%
----------------------------------------------------------------
11,000 Allied Signal Inc. $ 519,750
---------------------------------------------------------------- -----------
AUTOMOBILE--4.6%
----------------------------------------------------------------
15,000 General Motors Corp. 727,500
----------------------------------------------------------------
11,000 General Motors Corp., Class H 522,500
---------------------------------------------------------------- -----------
Total 1,250,000
---------------------------------------------------------------- -----------
CHEMICALS--9.3%
----------------------------------------------------------------
8,500 Air Products & Chemicals, Inc. 471,750
----------------------------------------------------------------
6,000 Dow Chemical Co. 425,250
----------------------------------------------------------------
8,000 duPont E.I. de Nemours & Co. 532,000
----------------------------------------------------------------
4,000 Eastman Kodak Co. 272,000
----------------------------------------------------------------
9,000 Grace W.R. & Co. 546,750
----------------------------------------------------------------
10,000 Praxair, Inc. 291,250
---------------------------------------------------------------- -----------
Total 2,539,000
---------------------------------------------------------------- -----------
CONSUMER GOODS--7.4%
----------------------------------------------------------------
10,000 General Electric Co. 672,500
----------------------------------------------------------------
5,000 Georgia-Pacific Corp. 388,750
----------------------------------------------------------------
10,000 PepsiCo, Inc. 552,500
----------------------------------------------------------------
4,600 Procter & Gamble Co. 397,325
---------------------------------------------------------------- -----------
Total 2,011,075
---------------------------------------------------------------- -----------
ELECTRONICS--4.2%
----------------------------------------------------------------
13,000 AMP, Inc. 521,625
----------------------------------------------------------------
12,000 Raychem Corp. 624,000
---------------------------------------------------------------- -----------
Total 1,145,625
---------------------------------------------------------------- -----------
ENTERTAINMENT--2.0%
----------------------------------------------------------------
9,000 Disney Walt Co. 541,125
---------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------
FINANCE--4.7%
----------------------------------------------------------------
18,700 American Express Co. $ 794,750
----------------------------------------------------------------
6,000 Morgan J.P. & Co., Inc. 471,000
---------------------------------------------------------------- -----------
Total 1,265,750
---------------------------------------------------------------- -----------
HEALTH CARE--8.2%
----------------------------------------------------------------
6,500 Abbott Labs 264,063
----------------------------------------------------------------
17,000 Columbia/HCA Healthcare 877,625
----------------------------------------------------------------
7,500 Johnson & Johnson 649,688
----------------------------------------------------------------
8,000 SmithKline Beecham PLC 426,000
---------------------------------------------------------------- -----------
Total 2,217,376
---------------------------------------------------------------- -----------
INSURANCE--10.6%
----------------------------------------------------------------
4,000 Chubb Corp. 389,000
----------------------------------------------------------------
21,000 Equitable Companies, Inc. 522,375
----------------------------------------------------------------
7,000 ITT Corp. 858,375
----------------------------------------------------------------
10,000 Jefferson-Pilot Corp. 711,250
----------------------------------------------------------------
10,000 Providian Corp. 401,250
---------------------------------------------------------------- -----------
Total 2,882,250
---------------------------------------------------------------- -----------
METALS--1.1%
----------------------------------------------------------------
5,000 Aluminum Co. of America 292,500
---------------------------------------------------------------- -----------
MORTGAGE--2.3%
----------------------------------------------------------------
4,000 Federal Home Loan Mortgage Corp. 308,000
----------------------------------------------------------------
2,950 Federal National Mortgage Association 323,025
---------------------------------------------------------------- -----------
Total 631,025
---------------------------------------------------------------- -----------
OFFICE EQUIPMENT--2.1%
----------------------------------------------------------------
5,800 International Business Machines 560,425
---------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------
OIL SERVICE--16.1%
----------------------------------------------------------------
8,500 Amoco Corp. $ 575,875
----------------------------------------------------------------
5,000 British Petroleum PLC 478,125
----------------------------------------------------------------
10,000 Chevron Corp. 493,750
----------------------------------------------------------------
6,000 Exxon Corp. 464,250
----------------------------------------------------------------
15,000 Foster Wheeler Corp. 592,500
----------------------------------------------------------------
14,000 Halliburton Co. 607,250
----------------------------------------------------------------
5,000 Mobil Corp. 521,875
----------------------------------------------------------------
20,000 Questar Corp. 647,500
---------------------------------------------------------------- -----------
Total 4,381,125
---------------------------------------------------------------- -----------
PAPER PRODUCTS--1.2%
----------------------------------------------------------------
7,000 Champion International Corp. 329,875
---------------------------------------------------------------- -----------
RESTAURANTS--1.5%
----------------------------------------------------------------
9,000 McDonald's Corp. 401,625
---------------------------------------------------------------- -----------
RETAIL--4.3%
----------------------------------------------------------------
20,000 * Federated Department Stores, Inc. 582,500
----------------------------------------------------------------
15,000 Sears Roebuck & Co. 590,625
---------------------------------------------------------------- -----------
Total 1,173,125
---------------------------------------------------------------- -----------
TELECOMMUNICATIONS--7.0%
----------------------------------------------------------------
12,800 AT&T Corp. 844,800
----------------------------------------------------------------
10,000 * Airtouch Communications, Inc. 291,250
----------------------------------------------------------------
12,500 GTE Corp. 532,812
----------------------------------------------------------------
4,000 Motorola, Inc. 245,000
---------------------------------------------------------------- -----------
Total 1,913,862
---------------------------------------------------------------- -----------
TRANSPORTATION--1.7%
----------------------------------------------------------------
3,000 CSX Corp. 262,875
----------------------------------------------------------------
2,700 Norfolk Southern Corp. 212,625
---------------------------------------------------------------- -----------
Total 475,500
---------------------------------------------------------------- -----------
</TABLE>
111 CORCORAN EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ---------- ---------------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
- --------------------------------------------------------------------------------
UTILITIES--4.2%
----------------------------------------------------------------
12,000 Houston Industries, Inc. $ 549,000
----------------------------------------------------------------
20,000 Public Service Co. of North Carolina, Inc. 327,500
----------------------------------------------------------------
9,000 WMX Technologies, Inc. 265,500
---------------------------------------------------------------- -----------
Total 1,142,000
---------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST, $22,540,277) 25,673,013
---------------------------------------------------------------- -----------
MUTUAL FUND SHARES--2.4%
- --------------------------------------------------------------------------------
655,201 Goldman Sachs Money Market Fund (at net asset value) 655,201
- -------------------------------------------------------------------------------- -----------
U.S. GOVERNMENT SECURITY--3.7%
- --------------------------------------------------------------------------------
$1,000,000 Federal Home Loan Mortgage Discount Note, 5.63%, 12/1/95
(at amortized cost) 1,000,000
---------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $24,195,478) $27,328,214+
---------------------------------------------------------------- -----------
</TABLE>
* Non-income producing securities.
+ The cost of investments for federal tax purposes amounts to $24,195,478. The
net unrealized appreciation of investments on a federal tax basis amounts to
$3,132,736, which is comprised of $3,194,981 appreciation and $62,245
depreciation at November 30, 1995.
Note: The categories of investments are shown as a percentage of net assets
($27,205,249) at November 30, 1995.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $24,195,478) $27,328,214
- --------------------------------------------------------------------------------
Income receivable 92,117
- --------------------------------------------------------------------------------
Receivable for investments sold 475,474
- --------------------------------------------------------------------------------
Receivable for shares sold 139,995
- --------------------------------------------------------------------------------
Deferred expenses 6,380
- -------------------------------------------------------------------------------- -----------
Total assets 28,042,180
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for investments purchased $663,519
- ---------------------------------------------------------------------
Payable to Bank 139,964
- ---------------------------------------------------------------------
Accrued expenses 33,448
- --------------------------------------------------------------------- --------
Total liabilities 836,931
- -------------------------------------------------------------------------------- -----------
Net Assets for 2,142,619 shares outstanding $27,205,249
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $23,333,043
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 3,132,736
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments 684,520
- --------------------------------------------------------------------------------
Undistributed net investment income 54,950
- -------------------------------------------------------------------------------- -----------
Total Net Assets $27,205,249
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE AND REDEMPTION PROCEEDS PER SHARE:
Net Asset Value Per Share ($27,205,249 / 2,142,619 shares outstanding) $12.70
- -------------------------------------------------------------------------------- -----------
COMPUTATION OF OFFERING PRICE:
Offering Price Per Share (100/95.50 of $12.70)* $13.30
- -------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------
Dividends $ 269,473
- ----------------------------------------------------------------------------------------
Interest 40,894
- ---------------------------------------------------------------------------------------- ----------
Total income 310,367
- ----------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------
Investment advisory fee $110,773
- ----------------------------------------------------------------------------
Administrative personnel and services fee 25,000
- ----------------------------------------------------------------------------
Custodian fees 6,120
- ----------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 9,767
- ----------------------------------------------------------------------------
Directors'/Trustees' fees 1,705
- ----------------------------------------------------------------------------
Auditing fees 5,421
- ----------------------------------------------------------------------------
Legal fees 1,467
- ----------------------------------------------------------------------------
Portfolio accounting fees 16,109
- ----------------------------------------------------------------------------
Share registration costs 6,204
- ----------------------------------------------------------------------------
Printing and postage 2,523
- ----------------------------------------------------------------------------
Insurance premiums 1,741
- ----------------------------------------------------------------------------
Miscellaneous 2,135
- ---------------------------------------------------------------------------- --------
Total expenses 188,965
- ----------------------------------------------------------------------------
Waiver--
- ----------------------------------------------------------------------------
Waiver of investment advisory fee (26,064)
- ---------------------------------------------------------------------------- --------
Net expenses 162,901
- ---------------------------------------------------------------------------------------- ----------
Net investment income 147,466
- ---------------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------------
Net realized gain on investments 644,786
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 1,997,523
- ---------------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 2,642,309
- ---------------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $2,789,775
- ---------------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
NOVEMBER 30, 1995 PERIOD ENDED
(UNAUDITED) MAY 31, 1995*
----------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------
Net investment income $ 147,466 $ 128,312
- --------------------------------------------------------
Net realized gain on investments ($644,786 and $39,734
net gains, respectively, as computed for federal tax
purposes) 644,786 39,734
- --------------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,997,523 1,135,213
- -------------------------------------------------------- --------------- -------------
Change in net assets resulting from operations 2,789,775 1,303,259
- -------------------------------------------------------- --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------
Distributions from net investment income (182,016) (38,812)
- -------------------------------------------------------- --------------- -------------
SHARE TRANSACTIONS--
- --------------------------------------------------------
Proceeds from sale of shares 3,326,531 24,299,699
- --------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 8,605 2,285
- --------------------------------------------------------
Cost of shares redeemed (3,318,522) (985,555)
- -------------------------------------------------------- --------------- -------------
Change in net assets resulting from share
transactions 16,614 23,316,429
- -------------------------------------------------------- --------------- -------------
Change in net assets 2,624,373 24,580,876
- --------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------
Beginning of period 24,580,876 --
- -------------------------------------------------------- --------------- -------------
End of period (including undistributed net investment
income of $54,950 and $89,500, respectively) $27,205,249 $24,580,876
- -------------------------------------------------------- --------------- -------------
</TABLE>
* For the period from December 5, 1994 (date of initial public investment) to
May 31, 1995.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
NOVEMBER 30, 1995 PERIOD ENDED
(UNAUDITED) MAY 31, 1995(A)
----------------- ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.48 $ 10.00
- -------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------
Net investment income 0.07 0.11
- -------------------------------------------------------
Net realized and unrealized gain (loss) on
investments 1.24 1.44
- ------------------------------------------------------- ----------- ----------
Total from investment operations 1.31 1.55
- ------------------------------------------------------- ----------- ----------
LESS DISTRIBUTIONS
- -------------------------------------------------------
Distributions from net investment income (0.09) (0.07)
- ------------------------------------------------------- ----------- ----------
NET ASSET VALUE, END OF PERIOD $ 12.70 $ 11.48
- ------------------------------------------------------- ----------- ----------
TOTAL RETURN(B) 11.42% 15.55%
- -------------------------------------------------------
Ratios to average net assets
- -------------------------------------------------------
Expenses 1.25%* 1.25%*
- -------------------------------------------------------
Net investment income 1.13%* 3.00%*
- -------------------------------------------------------
Expense waiver/reimbursement(c) 0.20%* 1.42%*
- -------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------
Net assets, end of period (000 omitted) $27,205 $24,581
- -------------------------------------------------------
Portfolio turnover 38% 4%
- -------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from December 5, 1994 (date of initial
public investment) to May 31, 1995.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
111 Corcoran Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The Trust consists of two diversified portfolios and one non-diversified
portfolio. The financial statements included herein present only those of 111
Corcoran Equity Fund (the "Fund"), a diversified portfolio. The financial
statements of the other portfolios 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. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Short-term securities with remaining maturities of
sixty days or less at the time of purchase may be valued at amortized cost,
which approximates fair market value. Investments in other open-end
investment companies are valued at net asset value. All other securities
are valued at prices provided by an independent pricing service.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Interest income and expenses are accrued daily. Bond premium and discount,
if applicable, are amortized as required by the Internal Revenue Code, as
amended (the "Code").
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal taxes are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains 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.
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 its shares, have been deferred and are being
amortized using the straight-line method not to exceed a period of five
years from the Fund's commencement date.
OTHER--Investment transactions are accounted for on the trade date.
111 CORCORAN EQUITY FUND
- --------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
NOVEMBER 30, 1995 MAY 31, 1995*
- ------------------------------------------------------ ------------------ --------------
<S> <C> <C>
Shares sold 275,200 2,229,804
- ------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 719 210
- ------------------------------------------------------
Shares redeemed (273,592) (89,732)
- ------------------------------------------------------ -------------- ------------
Net change resulting from share transactions 2,327 2,140,282
- ------------------------------------------------------ -------------- ------------
</TABLE>
* For the period from December 5, 1994 (date of initial public investment) to
May 31, 1995.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Central Carolina Bank and Trust Company, the Fund's
investment adviser (the "Adviser"), receives for its services an annual
investment advisory fee equal to .85 of 1% of the Fund's average daily net
assets. The Adviser may voluntarily choose to waive any portion of its fee. The
Adviser can modify or terminate this voluntary waiver at any time at its sole
discretion.
Under the terms of an investment sub-advisory agreement between the Adviser and
Franklin Street Advisers, Inc. (the "Sub-Adviser"), the Sub-Adviser furnishes
certain investment advisory services to the Adviser. The Sub-Adviser receives
from the Adviser an annual fee equal to .65 of 1% of the Fund's average daily
net assets payable from the Advisory fee. The Sub-Adviser may voluntarily choose
to waive any portion of its fee.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
TRANSFER AND DIVIDEND DISBURSING AGENT AND PORTFOLIO ACCOUNTING FEES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Fund for which it receives a fee. This fee is based on the size, type, and
number of accounts and transactions made by shareholders.
FServ also maintains the Fund's accounting records for which it receives a fee.
The fee is based on the level of the Fund's average net assets for the period,
plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $26,368 were borne initially
by FAS. The Fund has agreed to reimburse FAS for the organizational expenses
during the five year period
111 CORCORAN EQUITY FUND
- --------------------------------------------------------------------------------
following December 2, 1994 (date the Fund became effective). For the six months
ended November 30, 1995, the Fund paid $1,167 pursuant to this agreement.
GENERAL--Certain of the Officers and Trustees of the Fund are Officers and
Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six
months ended November 30, 1995, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
Purchases $11,370,910
- ------------------------------------------------------------------------------- -----------
Sales $ 9,286,119
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. John W. McGonigle
Edward C. Gonzales Executive Vice President and Secretary
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
John E. Murray, Jr. Joseph S. Machi
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts David M. Taylor
Assistant Treasurer
C. Grant Anderson
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including 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.
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present your Semi-Annual Report to Shareholders for 111 Corcoran
North Carolina Municipal Securities Fund. It covers the six-month period ended
November 30, 1995.
This report contains important information that includes an Investment Review by
the Fund's portfolio manager, a complete listing of the Fund's Portfolio of
Investments, and its Financial Statements.
To help your money earn double-tax-free income--exempt from federal regular
income tax and North Carolina state income tax--the Fund invests primarily in a
portfolio of high-quality bonds issued by North Carolina municipalities.* All
bonds in the Fund's portfolio are rated A or higher by nationally recognized
rating agencies.**
During the six-month period ended November 30, 1995, 111 Corcoran North Carolina
Municipal Securities Fund achieved a double-tax-free total return of 4.40% based
on net asset value.+ The Fund paid a total of $0.24 in income per share, while
its share price rose from $10.44 on the first day of the period to $10.65 on the
last day of the period. The Fund's net assets stood at $37.2 million at the end
of the period.
Thank you for selecting this Fund as a way to put your money to work pursuing
double-tax-free income. We will continue to keep you informed about your Fund's
progress.
Sincerely,
LOGO
Edward C. Gonzales
President
January 15, 1996
* Income may be subject to the federal alternative minimum tax.
** Ratings are according to Standard & Poor's Ratings Group.
+ Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Total return for the
period ended November 30, 1995, which reflects the Fund's sales charge was
0.28%.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
Municipal bonds moved in tandem with the treasury market during the last 6
months of 1995. The tax-free market continues to be historically cheap versus
the taxable bond market. We feel this is due to the "flat tax" discussions in
Washington.
The total returns generated by bond funds were quite good and the 111 Corcoran
North Carolina Municipal Securities Fund participated with a total return of
4.40%*, for the six months ended November 30, 1995.
Going into 1996 we are cautiously optimistic as inflation continues to be under
control and municipals represent good value. One element that does concern us is
the big increase in the amount of North Carolina Municipal debt coming to market
versus 1995.
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
(A) MUNICIPAL SECURITIES--96.1%
- ------------------------------------------------------------------------
NORTH CAROLINA--94.2%
--------------------------------------------------------
$ 500,000 Alamance County, NC, 4.70% GO Bonds, 4/1/2007 Aa $ 493,445
--------------------------------------------------------
550,000 Alamance County, NC, 4.90% GO Bonds, 4/1/2010 Aa 539,038
--------------------------------------------------------
250,000 Alamance County, NC, 5.90% GO Bonds, 5/1/2006 Aa 270,085
--------------------------------------------------------
500,000 Burke County, NC, 6.30% GO Bonds (MBIA Insured),
3/1/2006 AAA 545,745
--------------------------------------------------------
865,000 Cabarrus County, NC, 4.80% GO Bonds (FGIC Insured),
3/1/2010 AAA 831,335
--------------------------------------------------------
250,000 Catawba County, NC, 5.70% GO Bonds, 6/1/2003 Aa 270,162
--------------------------------------------------------
500,000 Catawba County, NC, 5.75% GO Bonds, 6/1/2007 Aa 538,400
--------------------------------------------------------
500,000 Catawba County, NC, 5.85% Hospital Revenue Bonds (AMBAC
Insured), 10/1/2004 AAA 540,680
--------------------------------------------------------
500,000 Catawba County, NC, 5.95% Hospital Revenue Bonds (AMBAC
Insured), 10/1/2005 AAA 540,520
--------------------------------------------------------
750,000 Charlotte, NC, 5.30% GO Bonds, 4/1/2008 AAA 779,947
--------------------------------------------------------
500,000 Charlotte, NC, 5.50% GO Bonds (Series A), 7/1/2004 AAA 532,670
--------------------------------------------------------
500,000 Charlotte, NC, 6.50% (Prefunded 2/1/2001 @ 102) AAA 559,730
--------------------------------------------------------
400,000 Charlotte-Mecklenburg Hospital Authority, NC, 6.375%
Health Care System Revenue Refunding Bonds, 1/1/2009 AA 421,244
--------------------------------------------------------
365,000 Craven County, NC, 6.20% GO Bonds, 6/1/1999 A1 390,327
--------------------------------------------------------
600,000 Cumberland County, NC, 5.80% GO Bonds (MBIA Insured),
2/1/2007 AAA 642,072
--------------------------------------------------------
470,000 Duplin County, NC, 5.30% GO Bonds (MBIA Insured),
4/1/2007 AAA 485,552
--------------------------------------------------------
500,000 Durham & Wake Counties Special Airport District, NC,
5.75%, 4/1/2002 AAA 540,525
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 500,000 Fayetteville, NC, Public Works Commission, 4.60% Revenue
Bonds (FGIC Insured), 3/1/2005 AAA $ 494,220
--------------------------------------------------------
250,000 Fayetteville, NC, Public Works Commission,
5.90% Revenue Bonds (FSA Insured), 3/1/2007 AAA 266,520
--------------------------------------------------------
600,000 Forsyth County, NC, 6.25% GO Bonds, 3/1/2005 AA+ 653,808
--------------------------------------------------------
500,000 Greensboro, NC, 6.30% GO Bonds, 3/1/2012 AAA 538,330
--------------------------------------------------------
1,000,000 Guilford County, NC, 5.40% GO Bonds, 4/1/2009 AA+ 1,037,040
--------------------------------------------------------
350,000 Henderson County, NC, 6.50% GO Bonds, 6/1/2007 A1 383,600
--------------------------------------------------------
500,000 Iredell County, NC, 5.50% COP (FGIC Insured), 6/1/2001 AAA 526,745
--------------------------------------------------------
350,000 Iredell County, NC, 6.125% COP
(Statesville School Project)/(FGIC Insured), 6/1/2007 AAA 378,028
--------------------------------------------------------
675,000 Lee County, NC, 6.00%, 2/1/2004 A+ 729,365
--------------------------------------------------------
500,000 Lincoln County, NC, 5.10% GO Bonds (FGIC Insured),
6/1/2007 AAA 508,935
--------------------------------------------------------
500,000 Mecklenburg County, NC, 5.90% GO Bonds, 3/1/2004 AAA 542,240
--------------------------------------------------------
250,000 Moore County, NC, 4.80% (AMBAC Insured), 6/1/2006 AAA 249,692
--------------------------------------------------------
500,000 Mooresville Grade School District, 6.30% COP
(AMBAC Insured), 10/1/2009 AAA 543,275
--------------------------------------------------------
500,000 Morganton, NC, 5.60% Water & Sewer GO Bonds
(FGIC Insured), 6/1/2007 AAA 533,305
--------------------------------------------------------
500,000 Morganton, NC, 5.70% Water & Sewer GO Bonds
(FGIC Insured), 6/1/2012 AAA 526,975
--------------------------------------------------------
1,000,000 New Hanover County, NC, 5.40% GO Bonds, 3/1/2009 A+ 1,027,100
--------------------------------------------------------
200,000 New Hanover County, NC, 7.10% GO Bonds
(Prerefunded 6/1/1999 @102) A+ 222,376
--------------------------------------------------------
500,000 North Carolina Eastern Municipal Power Agency,
6.00% Revenue Bonds (Series B), 1/1/2006 A 510,970
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 300,000 North Carolina Educational Facilities Authority, 6.375%
Revenue Bonds (Elon College Project)/
(Connie Lee Insured), 1/1/2007 AAA $ 325,596
--------------------------------------------------------
200,000 North Carolina Medical Care Commission, 5.95% Revenue
Bonds (Presbyterian Hospital), 10/1/2007 AA 209,780
--------------------------------------------------------
1,125,000 North Carolina Municipal Power Agency Catawba, 10.50%
Revenue Bonds, 1/1/2010 AAA 1,594,834
--------------------------------------------------------
500,000 North Carolina Municipal Power Agency Catawba, 6.00%
Revenue Bonds, 1/1/2004 A 525,770
--------------------------------------------------------
500,000 North Carolina Municipal Power Agency, 5.25% Revenue
Bonds (AMBAC Insured), 1/1/2008 AAA 509,170
--------------------------------------------------------
500,000 North Carolina Municipal Power Agency, 5.75% Revenue
Bonds (AMBAC Insured), 1/1/2002 AAA 533,065
--------------------------------------------------------
535,000 North Carolina State, 6.20% (Prerefunded 3/1/2002 @ 102) AAA 598,371
--------------------------------------------------------
500,000 North Carolina State, 6.60% (Prerefunded 1/1/1996 @
101.5) AAA 512,915
--------------------------------------------------------
500,000 Pitt County, NC, 5.10% GO Bonds, 2/1/2007 Aa 512,165
--------------------------------------------------------
250,000 Pitt County, NC, 6.05% COP (FGIC Insured), 4/1/1998 AAA 261,448
--------------------------------------------------------
500,000 Randolph County, NC, 6.20% GO Bonds, 5/1/2005 A+ 545,965
--------------------------------------------------------
365,000 Rocky Mount, NC, 6.30% GO Bonds, 5/1/2009 A+ 392,426
--------------------------------------------------------
500,000 Rowan County, NC, 5.60% GO Bonds (FGIC Insured),
5/1/2011 AAA 520,555
--------------------------------------------------------
500,000 Rowan County, NC, 5.60% GO Bonds
(MBIA Insured), 4/1/2009 AAA 526,765
--------------------------------------------------------
500,000 Rutherford County, NC, 5.10% GO Bonds (MBIA Insured),
6/1/2008 AAA 508,565
--------------------------------------------------------
500,000 Rutherford County, NC, 5.70% GO Bonds
(MBIA Insured/Prerefunded 6/1/2002 @ 102) AAA 546,925
--------------------------------------------------------
500,000 Union County, NC, 5.80% GO Bonds, 3/1/2006 A+ 534,265
--------------------------------------------------------
</TABLE>
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
NORTH CAROLINA--CONTINUED
--------------------------------------------------------
$ 500,000 Union County, NC, 6.50% GO Bonds, 4/1/2005 A+ $ 553,435
--------------------------------------------------------
500,000 Union County, NC, 6.50% GO Bonds, 4/1/2006 A+ 546,950
--------------------------------------------------------
500,000 University of North Carolina at Charlotte, 5.00% Revenue
Bonds (MBIA Insured), 1/1/2007 AAA 503,325
--------------------------------------------------------
500,000 Wake County, NC, 4.20% GO Bonds, 4/1/1998 AAA 504,130
--------------------------------------------------------
500,000 Wake County, NC, 6.90% Revenue Bonds (Carolina Power &
Light Co.), 4/1/2009 A2 543,835
--------------------------------------------------------
1,185,000 Wilmington, NC, 4.80% GO Bonds, 3/1/2008 A+ 1,166,692
--------------------------------------------------------
500,000 Wilmington, NC, 6.30% GO Bonds, 3/1/2005 A+ 549,760
--------------------------------------------------------
500,000 Wilmington, NC, 6.40% Water & Sewer GO Bonds, 3/1/2007 A+ 549,735
--------------------------------------------------------
800,000 Winston-Salem, NC, 5.40% GO Bonds, 6/1/2009 AAA 828,360
--------------------------------------------------------
500,000 Winston-Salem, NC, 5.40% GO Bonds, 6/1/2011 AAA 514,045
--------------------------------------------------------
1,000,000 Winston-Salem, NC, 6.25% Water & Sewer GO Bonds,
6/1/2005 AA+ 1,099,290
-------------------------------------------------------- -----------
Total 35,112,138
-------------------------------------------------------- -----------
PUERTO RICO--1.9%
--------------------------------------------------------
500,000 Puerto Rico Electric Power Authority, 5.75% Revenue
Bonds (FSA Insured), 7/1/2007 AAA 529,830
--------------------------------------------------------
200,000 Puerto Rico, Floating Rate Revenue Bonds (RIB)/(MBIA
Insured), 1/16/2015 AAA 200,250
-------------------------------------------------------- -----------
Total 730,080
-------------------------------------------------------- -----------
TOTAL MUNICIPAL SECURITIES (IDENTIFIED COST,
$34,526,215) 35,842,218
-------------------------------------------------------- -----------
</TABLE>
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
SHARES RATING* VALUE
- ---------- -------------------------------------------------------- -------- -----------
<C> <S> <C> <C>
MUTUAL FUND SHARES--0.5%
- ------------------------------------------------------------------------
5,600 North Carolina Daily Tax-Free Income Money Market Fund $ 5,600
--------------------------------------------------------
177,900 PNC North Carolina Money Market Fund 177,900
-------------------------------------------------------- -----------
TOTAL MUTUAL FUND SHARES (AT NET ASSET VALUE) 183,500
-------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $34,709,715) $36,025,718+
-------------------------------------------------------- -----------
</TABLE>
+ The cost of investments for federal tax purposes amounts to $34,709,715. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $1,316,003 which is comprised of $1,349,038 appreciation
and $33,035 depreciation at November 30, 1995.
(a) At November 30, 1995, .6% of the total investments at market value were
subject to alternative minimum tax.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings.
Note: The categories of investments are shown as a percentage of net assets
($37,296,079) at November 30, 1995.
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificates of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Investors Assurance
RIB -- Residual Interest Bond
</TABLE>
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $34,709,715) $36,025,718
- --------------------------------------------------------------------------------
Income receivable 636,475
- --------------------------------------------------------------------------------
Receivable for investments sold 794,527
- --------------------------------------------------------------------------------
Receivable for shares sold 20,573
- --------------------------------------------------------------------------------
Deferred expenses 6,971
- -------------------------------------------------------------------------------- -----------
Total assets 37,484,264
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Income distribution payable $144,003
- ---------------------------------------------------------------------
Payable to Bank 19,960
- ---------------------------------------------------------------------
Accrued expenses 24,222
- --------------------------------------------------------------------- --------
Total liabilities 188,185
- -------------------------------------------------------------------------------- -----------
Net Assets for 3,503,210 shares outstanding 37,296,079
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $36,495,482
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 1,316,003
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (516,446)
- --------------------------------------------------------------------------------
Undistributed net investment income 1,040
- -------------------------------------------------------------------------------- -----------
Total Net Assets $37,296,079
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
- --------------------------------------------------------------------------------
Net Asset Value Per Share ($37,296,079 / 3,503,210 shares outstanding) $10.65
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.50 of $10.65)* $11.15
- -------------------------------------------------------------------------------- -----------
</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, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $ 979,159
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------
Investment advisory fee $ 142,448
- ---------------------------------------------------------------------
Administrative personnel and services fee 28,491
- ---------------------------------------------------------------------
Custodian fees 2,469
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 14,133
- ---------------------------------------------------------------------
Directors'/Trustees' fees 2,970
- ---------------------------------------------------------------------
Auditing fees 8,376
- ---------------------------------------------------------------------
Legal fees 2,002
- ---------------------------------------------------------------------
Portfolio accounting fees 21,166
- ---------------------------------------------------------------------
Share registration costs 5,650
- ---------------------------------------------------------------------
Printing and postage 5,903
- ---------------------------------------------------------------------
Insurance premiums 2,047
- ---------------------------------------------------------------------
Miscellaneous 6,325
- --------------------------------------------------------------------- ---------
Total expenses 241,980
- ---------------------------------------------------------------------
Waiver--
- ---------------------------------------------------------------------
Waiver of investment advisory fee (142,448)
- --------------------------------------------------------------------- ---------
Net expenses 99,532
- --------------------------------------------------------------------------------- ----------
Net investment income 879,627
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 264,416
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 474,472
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 738,888
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,618,515
- --------------------------------------------------------------------------------- ----------
</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>
SIX MONTHS
ENDED
NOVEMBER 30, YEAR ENDED
1995 MAY 31,
(UNAUDITED) 1995
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 879,627 $ 2,038,748
- --------------------------------------------------------------
Net realized gain on investments ($264,416 and $0,
respectively, as computed for federal tax purposes) 264,416 (771,122)
- --------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 474,472 1,445,684
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from operations 1,618,515 2,712,310
- -------------------------------------------------------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Distributions from net investment income (879,627) (2,037,708)
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from distributions to
shareholders (879,627) (2,037,708)
- -------------------------------------------------------------- ----------- -----------
SHARE TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 2,162,269 4,742,618
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 109,368 303,412
- --------------------------------------------------------------
Cost of shares redeemed (5,517,516) (11,781,966)
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from share transactions (3,245,879) (6,735,936)
- -------------------------------------------------------------- ----------- -----------
Change in net assets (2,506,991) (6,061,334)
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 39,803,070 45,864,404
- -------------------------------------------------------------- ----------- -----------
End of period (including undistributed net investment income
of $1,040 and $1,040, respectively) $37,296,079 $39,803,070
- -------------------------------------------------------------- ----------- -----------
</TABLE>
(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>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED MAY 31,
NOVEMBER 30, ---------------------------------
1995 1995 1994 1993(A)
------------ ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.44 $10.17 $10.36 $10.00
- ----------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------
Net investment income 0.24 0.48 0.47 0.37
- ----------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.21 0.27 (0.18) 0.36
- ---------------------------------------------- --------- ------ ------ ------
Total from investment operations 0.45 0.75 0.29 0.73
- ---------------------------------------------- --------- ------ ------ ------
LESS DISTRIBUTIONS
- ----------------------------------------------
Distributions from net investment income (0.24) (0.48) (0.47) (0.37)
- ----------------------------------------------
Distributions from net realized gain on
investments -- -- (0.01) --
- ----------------------------------------------
Total distributions (0.24) (0.48) (0.48) (0.37)
- ---------------------------------------------- --------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $10.65 $10.44 $10.17 $10.36
- ---------------------------------------------- --------- ------ ------ -------
TOTAL RETURN(B) 4.40% 7.71% 2.68% 7.37%
- ----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------
Expenses 0.52%* 0.57% 0.69% 0.70%*
- ----------------------------------------------
Net investment income 4.63%* 4.82% 4.42% 4.51%*
- ----------------------------------------------
Expense waiver/reimbursement(c) 0.75%* 0.75% 0.75% 0.99%*
- ----------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------
Net assets, end of period (000 omitted) $37,296 $39,803 $45,864 $28,152
- ----------------------------------------------
Portfolio turnover 29% 47% 24% 17%
- ----------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from July 22, 1992 (date of initial
public investment) to May 31, 1993.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
111 Corcoran Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act") as an open-end, management investment company.
The Trust consists of two diversified and one non-diversified portfolios. The
financial statements included herein are only those of 111 Corcoran North
Carolina Municipal Securities Fund (the "Fund"), a non-diversified portfolio.
The financial statements of the other portfolios 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. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Short-term securities with remaining maturities of
sixty days or less at the time of purchase may be valued at amortized cost,
which approximates fair market value. All other securities are valued at
prices provided by an independent pricing service. Investments in other
open-end regulated investment companies are valued at net asset value.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
At May 31, 1995, the Fund, for federal tax purposes, had a capital loss
carryforward of $272,995, which will reduce the Fund's taxable income
arising from future net realized gain on investments, if any, to the extent
permitted by the Code, and thus will reduce the amount of the 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 2003.
Additionally, net capital losses of $507,733 attributable to security
transactions incurred after October 31, 1994 are treated as arising on the
first day of the Fund's current taxable year.
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains 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.
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 its 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.
CONCENTRATION OF CREDIT RISK--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 of that state than would be a
comparable tax-exempt mutual fund that invests nationally. In order to
reduce the credit risk associated with such factors, at November 30, 1995,
34.9% 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 value of investments insured by
or supported (backed) by a letter of credit from any one institution or
agency did not exceed 12.7% of total investments.
OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1995 1995
- ------------------------------------------------------------- ------------ ----------
<S> <C> <C>
Shares sold 206,776 478,316
- -------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 10,474 30,434
- -------------------------------------------------------------
Shares redeemed (528,374) (1,203,315)
- ------------------------------------------------------------- ----------- ----------
Net change resulting from share transactions (311,124) (694,565)
- ------------------------------------------------------------- ----------- ----------
</TABLE>
111 CORCORAN NORTH CAROLINA MUNICIPAL
SECURITIES FUND
- --------------------------------------------------------------------------------
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Central Carolina Bank, the Fund's investment adviser,
(the "Adviser"), receives for its services an annual investment advisory fee
equal to .75 of 1% of the Fund's average daily net assets.
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. This fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT AND PORTFOLIO ACCOUNTING
FEES--Federated Services Company ("FServ") serves as transfer and dividend
disbursing agent for the Fund for which it receives a fee. This fee is based on
the size, type, and number of accounts and transactions made by shareholders.
FServ also maintains the Fund's accounting records for which it receives a fee.
The fee is based on the level of the Fund's average net assets for the period,
plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of $43,033 were borne initially
by FAS. The Fund has agreed to reimburse FAS for the organizational expenses
during the five year period following effective date. For the period ended
November 30, 1995, the Fund paid $5,737 pursuant to this agreement.
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended November 30, 1995, were as follows:
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
Purchases $10,829,150
- ------------------------------------------------------------------------------- -----------
Sales $14,246,194
- ------------------------------------------------------------------------------- -----------
</TABLE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. John W. McGonigle
Edward C. Gonzales Executive Vice President and Secretary
Peter E. Madden Richard B. Fisher
Gregor F. Meyer Vice President
John E. Murray, Jr. Joseph S. Machi
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts David M. Taylor
Assistant Treasurer
C. Grant Anderson
Assistant Secretary
</TABLE>
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including 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
