<PAGE>
OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
- ------------------------------------------
61 Broadway, New York, New York 10006
Shareholder Inquiries
[LOGO]
Forum Financial Corp.
P.O. Box 446, Portland, Maine 04112
207-879-0001
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ANNUAL REPORT June 30, 1996
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August 15, 1996
Dear Shareholder:
For the year ending 6/30/96, the Oak Hall Capital Fund's total return was 20.12%
compared to 24.00% for the Russell 2000, the index against which we are most
frequently measured. Our average annual total return since inception (6/30/92)
was 12.74% versus 15.88% for the Russell.
Our sector weightings continue to be weighted in favor of natural resources,
particularly gold and energy. Oil and gas stocks have been among the top
performing groups since the beginning of this calendar year, although they were
laggards prior to that and brought down our overall numbers. The outlook at
present is very positive with growth in energy demand outstripping supplies for
the foreseeable future. We intend to maintain this exposure based on the
positive outlook.
The gold sector has been more problematic. Although bullion prices broke out
early this year to a new multiyear high at $413/oz., they soon retreated in a
protracted correction through early July and brought most of the mining shares
down with them. The performance of our gold shares was outstanding through May
of this year when the Fund's net asset value peaked at $14.58 per share. After
that, the correction we have spoken about has erased many of the earlier gains.
We remain positive on gold's fundamentals and believe prices made an important
bottom in July. We believe that most of our holdings are in companies whose cash
flow and asset values will grow irrespective of the gold price.
The remainder of the portfolio is invested in typical Oak Hall value/contrarian
stocks. These are undervalued securities in which managements are attempting to
refocus business strategy and thereby attract renewed investment interest. For
example, we hold shares of WMS Industries, the leading factor in home video
entertainment. The company also owns casinos in Puerto Rico and has just entered
the slot machine business. Management and shareholders have been frustrated by
the lack of performance over the last three years and believe the values are
substantially higher than the current price of 20. In order to bring out the
values, management will spin off the casinos and sell a portion of the home
video business to the public. We believe these steps will demonstrate values
well above the current share price.
The recent correction in high tech and NASDAQ stocks during June and July did
not leave us unscathed. However, valuations and sentiment in the market now seem
far more realistic than before. We have high confidence in our investments in
terms of valuation and upside potential and believe that we are well positioned
to produce satisfactory investment results in the coming year.
John Hathaway
President and Chief Investment Officer
Oak Hall-Registered Trademark- Capital Advisors, L.P.
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
ANNUAL REPORT
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The following chart reflects a comparison in the change in value of a
$10,000 investment in the Oak Hall Equity Fund, including reinvested dividends
and distributions, and the performance of the Russell 2000 Index. It is
important to keep in mind the Russell 2000 Index excludes the effect of any
fees. Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. Past performance is not predictive nor a guarantee of
future results.
OAK HALL EQUITY FUND VS. RUSSELL 2000 INDEX
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN VALUE ON
<S> <C> <C> <C> <C>
Since
One Year Inception 6/30/1996
Oak Hall Equity 20.12% 12.74% $16,038
Russell 2000 22.27% 15.88% $18,486
w/o div reinvest
Oak Hall Equity Russell 2000
7/23/1992 $10,000 $10,000
7/31/1992 $9,791 $10,000
8/31/1992 $9,791 $9,694
9/30/1992 $9,870 $9,906
10/31/1992 $9,780 $10,213
11/30/1992 $10,218 $10,979
12/31/1992 $10,695 $11,349
1/31/1993 $10,834 $11,714
2/28/1993 $11,033 $11,421
3/31/1993 $11,979 $11,770
4/30/1993 $12,267 $11,435
5/31/1993 $14,049 $11,923
6/30/1993 $14,227 $11,983
7/31/1993 $14,894 $12,142
8/31/1993 $14,407 $12,641
9/30/1993 $13,730 $12,989
10/31/1993 $14,894 $13,308
11/30/1993 $14,446 $12,859
12/31/1993 $15,173 $13,279
1/31/1994 $15,378 $13,696
2/28/1994 $15,098 $13,647
3/31/1994 $14,711 $12,926
4/30/1994 $14,227 $13,002
5/31/1994 $14,034 $12,857
6/30/1994 $13,496 $12,420
7/31/1994 $13,453 $12,623
8/31/1994 $13,830 $13,326
9/30/1994 $14,411 $13,282
10/31/1994 $14,013 $13,231
11/30/1994 $13,302 $12,696
12/31/1994 $13,410 $13,038
1/31/1995 $12,197 $12,873
2/28/1995 $12,444 $13,409
3/31/1995 $12,845 $13,640
4/30/1995 $12,786 $13,942
5/31/1995 $12,998 $14,182
6/30/1995 $13,352 $14,918
7/31/1995 $13,928 $15,777
8/31/1995 $14,694 $16,104
9/30/1995 $14,718 $16,392
10/31/1995 $14,671 $15,660
11/30/1995 $15,083 $16,317
12/31/1995 $14,741 $16,748
1/31/1996 $15,531 $16,730
2/29/1996 $15,944 $17,252
3/31/1996 $15,791 $17,604
4/30/1996 $16,569 $18,545
5/31/1996 $17,111 $19,276
6/30/1996 $16,038 $18,486
</TABLE>
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STONE BRIDGE FUNDS, INC.
2
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1996
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<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
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<C> <S> <C>
COMMON STOCK (97.4%)
AMUSEMENT & RECREATION SERVICES (1.1%)
6,500 Premier Parks, Inc.......................................... $ 141,374
-----------
BUSINESS SERVICES (5.3%)
30,600 Advo, Inc................................................... 317,476
10,400 Primark Corporation*........................................ 339,301
-----------
656,777
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CHEMICALS & ALLIED PRODUCTS (1.3%)
9,400 Scotts Company (The) -- Class A*............................ 164,500
-----------
COMMUNICATIONS (3.9%)
15,100 Renaissance Communications Corporation*..................... 486,975
-----------
ELECTRIC, GAS, & SANITARY SERVICES (2.5%)
10,900 Petroleum Geo-Services A/S, ADR*............................ 309,288
-----------
ELECTRONIC & ELECTRICAL EQUIPMENT (2.2%)
5,800 Teleflex, Inc............................................... 276,947
-----------
FABRICATED METAL PRODUCTS (4.0%)
7,400 Alliant Techsystems, Inc.*.................................. 348,724
5,100 Newell Company.............................................. 156,186
-----------
504,910
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FOOD & KINDRED PRODUCTS (3.7%)
100,000 EPL Technologies, Inc.*+.................................... 458,356
-----------
FURNITURE & FIXTURES (3.3%)
13,500 Herman Miller, Inc.......................................... 413,435
-----------
HEALTH CARE (0.4%)
2,200 Sunrise Assisted Living, Inc.*.............................. 52,800
-----------
HOLDING & OTHER INVESTMENT OFFICES (1.3%)
7,900 Allied Capital Commercial Corporation....................... 156,112
5 Presidio Capital Corporation................................ 102
-----------
156,214
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INDUSTRIAL & COMMERCIAL MACHINERY (2.4%)
15,900 Wang Laboratories, Inc.*.................................... 300,115
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<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
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<C> <S> <C>
INSURANCE AGENTS, BROKERS, & SERVICES (2.5%)
15,500 E.W. Blanch Holdings, Inc................................... $ 308,064
-----------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (1.8%)
11,000 Champion Enterprises, Inc................................... 229,625
2,575 Ehlco Liquidating Trust..................................... 387
-----------
230,012
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MEDICAL SUPPLIES & SERVICES (0.5%)
3,000 Trex Medical Corporation*................................... 56,625
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METAL MINING (18.2%)
500 Agnico-Eagle Mines, Ltd..................................... 8,125
80,000 Canyon Resources Corporation*............................... 220,000
100,000 Dakota Mining Corporation*.................................. 206,250
98,100 Dayton Mining Corporation*.................................. 588,598
7,600 Freeport McMoran, Inc....................................... 269,800
30,000 Golden Star Resources, Ltd.*................................ 435,000
75,000 Great Central Mines N.L.*................................... 205,418
9,515 Homestake Mining Company.................................... 162,942
50,000 Royal Oak Mines, Inc.*...................................... 184,375
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2,280,508
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MISCELLANEOUS MANUFACTURING INDUSTRIES (6.9%)
35,200 WMS Industries, Inc.*....................................... 866,800
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MISCELLANEOUS RETAIL (2.6%)
71,500 Ongard Systems, Inc.*+...................................... 322,644
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OIL & GAS EXTRACTION (16.9%)
5,000 Apache Corporation.......................................... 164,375
6,900 Coflexip-Sponsored, ADR*.................................... 119,889
34,634 Forest Oil Corporation...................................... 471,892
21,015 Global Natural Resources, Inc.*............................. 344,121
7,000 Louisiana Land & Exploration Company........................ 403,375
110,100 Miramar Mining Corporation*................................. 605,550
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2,109,202
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</TABLE>
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STONE BRIDGE FUNDS, INC.
3
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1996
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<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
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<C> <S> <C>
PRINTING & PUBLICATIONS (2.9%)
3,400 Belo (A.H.) Corporation..................................... $ 126,650
9,700 John H. Harland Company..................................... 238,860
-----------
365,510
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RETAIL SALES (1.1%)
8,300 Zale*....................................................... 140,063
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SAVINGS INSTITUTION, FEDERALLY CHARTERED (1.8%)
17,200 Dime Bancorp, Inc.*......................................... 223,600
-----------
TRANSPORTATION EQUIPMENT (3.1%)
21,700 Avondale Industries, Inc.*.................................. 390,600
-----------
TRANSPORTATION SERVICES (2.2%)
14,500 Stolt-Nielsen S.A., ADR..................................... 270,063
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WATER TRANSPORTATION (5.5%)
20,000 Sea Containers, Ltd. Class A................................ 380,000
7,000 Tidewater, Inc.............................................. 307,126
-----------
687,126
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TOTAL COMMON STOCK (COST $10,956,914) .......................................... $12,172,508
-----------
FLOATING RATE NOTES -- CORPORATE (2.6%)
$500,000 Transamerican Refining, 0% Coupon, due 2/15/02 ............. 320,000
-----------
TOTAL FLOATING RATE NOTES -- CORPORATE
(COST $320,000) ............................................................... $ 320,000
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<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
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<C> <S> <C>
SHORT-TERM HOLDINGS (0.0%)
50 1784 U.S. Treasury Money Market Fund ....................... $ 50
206 Dreyfus Government Cash Management Fund .................... 206
580 Forum Daily Assets Treasury Fund ........................... 580
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836
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TOTAL SHORT-TERM HOLDINGS (COST $836) .......................................... 836
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WARRANTS (0.0%)
2 Anacomp, Inc.*.............................................. 7
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TOTAL WARRANTS (COST $0) ....................................................... $ 7
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TOTAL INVESTMENTS (100.00%) (COST $11,286,499) ................................. $12,493,351
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-----------
</TABLE>
* Non-Income Producing
+ Restricted
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STONE BRIDGE FUNDS, INC.
4
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
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<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $11,286,499)...... $12,493,351
Interest, dividends and other receivables..... 12,972
Receivable for securities sold................ 22,970
Receivable for shares issued.................. 1,146
Organization costs, net of amortization....... 11,155
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Total assets...................................... 12,541,594
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LIABILITIES:
Payable for securities purchased.............. 161,485
Accrued advisory fees......................... 6,064
Accrued management fees....................... 2,574
Accrued fees and other expenses............... 114,299
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Total liabilities................................. 284,422
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NET ASSETS........................................ $12,257,172
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COMPONENTS OF NET ASSETS:
Capital paid in............................... $13,739,359
Net unrealized appreciation................... 1,206,852
Accumulated net realized loss................. (2,689,039)
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NET ASSETS........................................ $12,257,172
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SHARES OUTSTANDING................................ 900,879
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NET ASSET VALUE PER SHARE......................... $ 13.61
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</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS STONE BRIDGE FUNDS, INC.
5
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996
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<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend...................................... $ 93,483
Interest...................................... 33,032
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Total income...................................... 126,515
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EXPENSES:
Advisory...................................... 110,257
Administration................................ 36,752
Distribution.................................. 2,288
Transfer agent................................ 28,787
Accounting.................................... 40,000
Professional fees............................. 25,734
Legal......................................... 29,831
Amortization of organization costs............ 11,155
Filing........................................ 18,585
Other......................................... 55,555
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Total expenses.................................... 358,944
Advisory fees waived.......................... (64,502)
----------
Net expenses...................................... 294,442
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NET INVESTMENT LOSS............................... (167,927)
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments.............. 1,994,837
Net change in unrealized appreciation......... 982,857
----------
NET GAIN ON INVESTMENTS........................... 2,977,694
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INCREASE IN NET ASSETS FROM OPERATIONS............ $2,809,767
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</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS STONE BRIDGE FUNDS, INC.
6
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1995 AND 1996
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<TABLE>
<CAPTION>
AMOUNT SHARES
----------- ---------
<S> <C> <C>
NET ASSETS--June 30, 1994......................... $35,469,525
OPERATIONS:
Net investment loss........................... (59,338)
Net realized loss on investments and written
option transactions.......................... (4,889,942)
Net change in unrealized depreciation of
investments, written option transactions, and
short sale................................... 4,364,265
-----------
(585,015)
-----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized capital gain..................... (1,944,286)
-----------
CAPITAL SHARE TRANSACTIONS:
Sale of shares................................ 1,314,380 106,848
Reinvested dividends.......................... 1,917,656 168,511
----------- ---------
3,232,036 275,359
Cost of shares repurchased.................... (19,773,107) (1,655,543)
----------- ---------
(16,541,071) (1,380,184)
----------- ---------
---------
NET ASSETS--June 30, 1995......................... $16,399,153
-----------
OPERATIONS:
Net investment loss........................... (167,927)
Net realized gain on investments.............. 1,994,837
Net change in unrealized appreciation of
investments.................................. 982,857
-----------
2,809,767
-----------
CAPITAL SHARE TRANSACTIONS:
Sale of shares................................ 2,632,932 204,931
Shares repurchased............................ (9,584,680) (751,248)
----------- ---------
(6,951,748) (546,317)
----------- ---------
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NET ASSETS--June 30, 1996......................... $12,257,172
-----------
-----------
</TABLE>
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SEE NOTES TO FINANCIAL STATEMENTS STONE BRIDGE FUNDS, INC.
7
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
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NOTE 1. SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Stone Bridge Funds, Inc. (the "Company") is registered as an open-end management
investment company. The Company consists of two active investment portfolios.
Included in this report is Oak Hall-Registered Trademark- Equity Fund (the
"Fund"), a diversified portfolio that commenced operations on July 13, 1992. The
Fund's financial statements are prepared in accordance with generally accepted
accounting principles ("GAAP") which permits management to make certain
estimates and assumptions at the date of the financial statements and are based,
in part, on the following accounting policies.
A) VALUATION OF SECURITIES
Securities held by the Fund for which market quotations are readily
available are valued using the last reported sales price provided by
independent pricing services. If no sales are reported, the mean of the
last bid and asked price is used. In the absence of readily available
market quotations, securities are valued at fair value determined
pursuant to procedures adopted by the Board of Directors. Securities with
a maturity of 60 days or less are valued at amortized cost.
B) PURCHASES AND REDEMPTIONS OF SHARES
Purchases and redemptions of the Fund's shares will be effected at the
time of determination of the next net asset value following the receipt
of any purchase or redemption order.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME
Realized gains and losses on investments sold are recorded on the basis
of specific identification. Interest income is accrued as earned and
dividend income is recorded on ex-date.
D) DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income and net capital gains, if any,
are declared and paid at least annually based on their tax basis.
E) ORGANIZATION COSTS
The costs incurred by the Fund in connection with its organization have
been capitalized and are being amortized on a straight-line basis over a
five year period beginning on the commencement of the Fund's operations.
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STONE BRIDGE FUNDS, INC.
8
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
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F) FEDERAL TAXES
No provision for Federal income taxes is required because the Fund has
qualified and intends to continue to qualify as a regulated investment
company under the Internal Revenue Code. The Fund distributes all of its
taxable income to its shareholders.
<TABLE>
<S> <C>
Carryforward expiring in 2003................................ $1,903,766
Carryforward expiring in 2004................................ 966,142
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Total Carryforward........................................... $2,869,908
---------
---------
</TABLE>
NOTE 2. INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES AND OTHER TRANSACTIONS
WITH AFFILIATES
The investment adviser to the Fund is Oak Hall-Registered Trademark- Capital
Advisors, L.P. (the "Adviser"). Pursuant to an Investment Advisory Agreement,
the Adviser receives an advisory fee from the Fund at an annual rate of 0.75% of
the average daily net assets of the Fund. The Adviser has agreed to reimburse
the Fund for certain expenses that exceed the limits applicable to the Fund
under the laws of any state.
The administrator and distributor of the Fund is Forum Financial Services, Inc.
("Forum"). Pursuant to an Administration and Distribution Agreement, Forum
receives a fee from the Fund at an annual rate of 0.25% of the average daily net
assets of the Fund. Forum may delegate to other persons responsibility for
certain services under this Agreement. In addition, certain legal expenses of
$8,929 were charged to the Fund by Forum.
Forum Financial Corp. ("FFC") serves as the Fund's transfer agent and dividend
disbursing agent, and fund accountant. For its services in these capacities, FFC
receives $12,000 plus certain shareholder account fees and $36,000 plus certain
adjustments based on the type and volume of portfolio transactions,
respectively. Forum and FFC are affiliated Companies.
During the period ended June 30, 1996, the Fund placed a portion of its
brokerage transactions through American Securities Corporation, an affiliate of
the Adviser, for which brokerage commissions of $10,095 were paid.
NOTE 3. DISTRIBUTION PLAN
The Company has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Investment Company Act of 1940 with respect to the Fund. Under the
Plan, the Fund may reimburse Forum for the distribution expenses incurred by
Forum on behalf of the Fund. The Fund may not reimburse Forum for any
distribution expenses in any fiscal year of the Fund in excess of 0.20% of the
average daily net assets of the Fund.
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STONE BRIDGE FUNDS, INC.
9
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
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NOTE 4. PURCHASES AND SALES OF SECURITIES
Purchases and sales (excluding short-term investments and written options) of
securities during the period ended June 30, 1996 amounted to $21,675,563 and
$28,100,054, respectively. Unrealized appreciation and depreciation as of June
30, 1996 were $1,686,381 and $504,727, respectively. The cost of investments for
Federal income tax purposes at June 30, 1996 is $11,311,697.
NOTE 5. CAPITAL SHARE TRANSACTIONS
The Company has 20 billion shares of $0.001 par value stock authorized of which
2 billion is allocated to the Fund.
NOTE 6. RESTRICTED SECURITIES
At June 30, 1996 the Fund held investments that were purchased through private
offerings and cannot be resold without prior registration under the Securities
Act of 1933 or pursuant to an exemption therefrom. The acquisition dates, cost,
fair values, and their percentage of total investments, at June 30, 1996, are as
follows:
<TABLE>
<CAPTION>
% OF TOTAL
INVESTMENTS ACQUISITION DATE COST FAIR VALUE INVESTMENTS
- ---------------------------------------------------------- ---------------------- ---------- ---------- ---------------
<S> <C> <C> <C> <C>
EPL Technologies, Inc..................................... September 21, 1995 $ 200,000 $ 458,356 3.7%
Ongard Systems, Inc....................................... September 29, 1995 250,250 322,644 2.6
--
---------- ----------
Total................................................. $ 450,250 $ 781,000 6.3%
--
--
---------- ----------
---------- ----------
</TABLE>
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STONE BRIDGE FUNDS, INC.
10
<PAGE>
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
FINANCIAL HIGHLIGHTS
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SELECTED DATA FOR A SHARE OUTSTANDING
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1994 1993(c)
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Beginning Net Asset Value Per Share....... $ 11.33 $ 12.55 $ 14.30 $ 10.00
----------- ----------- ----------- -------------
Net Investment Loss....................... (0.32)(d) (0.03)(d) (0.09) --
Net Realized and Unrealized Gain/(Loss) on
Investments.............................. 2.60 (0.10) (0.52) 4.31
Distributions from Net Realized Gains..... -- (1.09) (1.14) (0.01)
----------- ----------- ----------- -------------
Ending Net Asset Value Per Share.......... $ 13.61 $ 11.33 $ 12.55 $ 14.30
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
Ratios to Average Net Assets:
Expenses (a).......................... 2.00% 2.00% 2.01% 1.23%(b)
Net investment loss................... (1.14)% (.23)% (.96)% (.07)%(b)
Total Return.............................. 20.12% (1.07)% (5.14)% 45.12%(b)
Portfolio Turnover Rate................... 157.01% 115.33% 168.61% 187.94%
Average Commission Rate................... $ 0.0601(e) N/A N/A N/A
Net Assets at End of Period (000's
omitted)................................. $ 12,257 $ 16,399 $ 35,470 $ 12,581
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
(a) During the period, various fees and expenses were
waived and reimbursed, respectively. Had such
waiver and reimbursement not occurred, the ratio
of expenses to average net assets would have
been: 2.44 % -- 2.17 % 5.91 %(b)
(b) Annualized.
(c) For the period July 13, 1992 (commencement of
operations) through June 30, 1993.
(d) Calculated using the weighted average shares
outstanding.
(e) Amount represents the average commission per
share paid to brokers on the purchase or sale of
equity securities.
</TABLE>
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STONE BRIDGE FUNDS, INC.
11
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OAK HALL-REGISTERED TRADEMARK- EQUITY FUND
REPORT OF INDEPENDENT AUDITORS
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The Shareholders and
Board of Directors
Stone Bridge Funds, Inc.
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Oak Hall-Registered Trademark- Equity Fund (one
of the portfolios constituting Stone Bridge Funds, Inc.) as of June 30, 1996,
the related statements of operations for the year then ended, and of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the three years in the period then ended and for the
period July 23, 1992 (commencement of operations) to June 30, 1993. These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the Oak
Hall-Registered Trademark- Equity Fund portfolio of Stone Bridge Funds, Inc. as
of June 30, 1996, the results of its operations, the changes in its net assets,
and the financial highlights for the respective stated periods, in conformity
with generally accepted accounting principles.
Deloitte & Touche LLP
New York, New York
August 16, 1996
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STONE BRIDGE FUNDS, INC.
12
<PAGE>
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INVESTMENT ADVISOR
Oak Hall-Registered Trademark- Capital Advisors, Inc.
122 East 42nd Street--24th Floor
New York, New York 10168
CUSTODIAN
The First National Bank of Boston
P.O. Box 1959
Boston, Massachussets 02105
DIRECTORS
John Y. Keffer
Joseph J. Nicholson
David B. Pinter
Max J. Schwartz
Seymour G. Siegel
OFFICERS
John Y. Keffer, CHAIRMAN AND PRESIDENT
Max Berueffy, VICE PRESIDENT AND
SECRETARY
Michael D. Martins, TREASURER AND ASSISTANT
SECRETARY
Lynn Y. Kelley, ASSISTANT TREASURER
David I. Goldstein, ASSISTANT SECRETARY
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO
SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A
COPY OF THE OAK HALL-REGISTERED TRADEMARK- EQUITY FUND PROSPECTS.
OAK HALL-REGISTERED TRADEMARK-
EQUITY FUND
ANNUAL REPORT
June 30, 1996
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