Selected Funds
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
Dear Shareholder:
As the stock market touches on an all time high, we can only comment
"what a difference one year makes." Interest rates have dropped and the
outlook for inflation is relatively benign. Corporate profits appear to be on
solid footing and should remain the dominating factor of the stock
market's performance in the near term.
1995 has proven to be a strong year for Selected American Shares, rising
22.05% over the past six months versus the S&P 500's 20.25% gain. Our
belief in the financial service's industry paid off handsomely as the stock
prices of these investments rebounded strongly off their 1994 lows. The
"greying of America" demographic trend should continue to benefit these
companies for the next decade. We will continue to invest in those
companies that will profit from this.
Selected Special Shares appreciated 20.16% for the first six months of
1995 versus 20.25% for the S&P 500. We believe that there are many
opportunities to buy selective companies at more favorable price/earnings
multiples of future growth than that paid for the S&P 500. We are in an
especially innovative period in world history and that technological
change provides significant investment opportunities. Moreover, lower
interest rates should favor rising multiples for equities.
With respect to the U.S. Government Income Fund, during the first half of
1995, the bond market experienced a rally of great intensity. The yield on
the 30 year bond fell 1.3 points, driving the yield from 7.9% to 6.6%. The
yield on the 2 year bond fell even more, 1.9 points, causing the yield to
fall from 7.7% to 5.8%. We believe that investors in a government bond
fund are looking for income and a degree of safety. Safety in a government
securities fund means some protection from huge swings in the net asset
value due to interest rate fluctuations. We are gradually positioning the
fund to have a relatively even distribution of maturities over an
intermediate range. This structure is designed to provide some stability, a
valuable commodity when investing.
Sincerely,
Robert J. Greenebaum Martin H. Proyect
Chairman President
August 16, 1994
<PAGE>
<TABLE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED AMERICAN SHARES, INC.
<CAPTION>
VALUE
SHARES (NOTE 1)
______________________________________________________________________________________________________
______________________________________________________________________________________________________
COMMON STOCK - (87.89%)
AGRICULTURE - (1.73%)
<C> <S> <C>
695,755 Archer Daniels Midland Co................................................... $ 12,958,437
AUTOMOBILES - (2.16%) ------------
345,000 General Motors Corp......................................................... 16,171,875
------------
BANKS AND SAVING AND LOAN ASSOCIATIONS - (8.27%)
250,000 Banc One Corp............................................................... 8,062,500
402,154 First Bank Systems, Inc..................................................... 16,488,314
183,800 Golden West Financial Corp.................................................. 8,661,575
150,000 Northern Trust Corp......................................................... 6,037,500
125,000 Wells Fargo & Co............................................................ 22,531,250
------------
61,781,139
------------
BUILDING - (0.92%)
500,000 Manville Corp.<F1>.......................................................... 6,875,000
------------
CHEMICALS - (1.56%)
330,000 Lubrizol Corp............................................................... 11,673,750
------------
COMPUTER PRODUCTS - (5.91%)
134,000 Hewlett-Packard Co.......................................................... 9,983,000
540,000 Intel Corp.................................................................. 34,188,750
------------
44,171,750
CONSUMER PRODUCTS - (0.56%) ------------
120 000 Seagram Co. Ltd. (The)...................................................... 4,155,000
ELECTRONICS - (3.41%) ------------
190,300 Texas Instruments, Inc...................................................... 25,476,413
ENERGY - (4.25%) ------------
265,000 Amerada Hess Corp........................................................... 12,951,875
255,000 Burlington Resources, Inc................................................... 9,403,125
250,000 Panhandle Eastern Corp...................................................... 6,093,750
50,000 Texaco Inc.................................................................. 3,281,250
------------
31,730,000
ENTERTAINMENT - (0.56%) ------------
75,000 Disney (Walt) Co. (The)..................................................... 4,171,875
FINANCIAL - (13.65%) ------------
595,000 American Express Co......................................................... 20,899,375
99,031 Dean Witter, Discover & Co.................................................. 4,654,457
86,000 Equifax, Inc................................................................ 2,870,250
275,000 Federal Home Loan Mortgage Corp............................................. 18,906,250
235,000 Morgan (J.P.) & Co., Inc.................................................... 16,479,375
253,600 Morgan Stanley Group Inc.................................................... 20,541,600
403,333 Travelers Group Inc......................................................... 17,645,819
------------
101,997,126
------------
<PAGE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED AMERICAN SHARES, INC. - Continued
VALUE
SHARES (NOTE 1)
______________________________________________________________________________________________________
______________________________________________________________________________________________________
COMMON STOCK - Continued
FOOD AND BEVERAGE - (2.91%)
250,000 Coca-Cola Company........................................................... $ 15,937,500
250,000 Tyson Foods, Inc., Class A.................................................. 5,781,250
------------
21,718,750
------------
HEALTH CARE - (6.14%)
200,000 Gillette Co., (The)......................................................... 8,925,000
150,000 Johnson & Johnson........................................................... 10,143,750
150,000 Pfizer Inc.................................................................. 13,856,250
150,000 Warner-Lambert Co........................................................... 12,956,250
------------
45,881,250
INSURANCE - (16.62%) ------------
261,000 Allstate Corp. (The)........................................................ 7,732,125
150,000 American International Group,Inc............................................ 17,100,000
302,850 Aon Corporation............................................................. 11,281,162
125,000 Berkley (W.R.) Corp......................................................... 4,437,500
210,000 Chubb Corp.................................................................. 16,826,250
376,100 Equitable Companies Inc..................................................... 7,851,087
151,100 Geico Corp.................................................................. 8,556,038
130,200 General Re Corp............................................................. 17,430,525
68,300 MBIA, Inc................................................................... 4,541,950
300,000 National Re Corp............................................................ 10,050,000
225,000 Progressive Corp.(Ohio)..................................................... 8,634,375
147,500 SunAmerica, Inc............................................................. 7,522,500
47,700 UNUM Corp................................................................... 2,235,938
------------
124,199,450
PAPER PRODUCTS - (1.59%) ------------
206,000 Union Camp Corp............................................................. 11,922,250
PUBLISHING - (3.77%) ------------
236,200 Gannett Co., Inc............................................................ 12,813,850
250,000 Tribune Co.................................................................. 15,343,750
------------
28,157,600
------------
RAILROAD - (1.54%)
333,600 Illinois Central Corp....................................................... 11,509,200
REAL ESTATE - (6.80%) ------------
359,600 Centerpoint Properties Corporation.......................................... 7,416,750
41,500 Federal Realty Investment Trust............................................. 897,437
665,800 Host Marriott Corp.<F1>..................................................... 7,074,125
100,000 Kimco Realty Corp........................................................... 3,800,000
50,000 Merry Land & Investment Co., Inc............................................ 1,018,750
100,000 Mid-America Apartment Communities, Inc...................................... 2,500,000
272,500 Saul Centers, Inc........................................................... 4,360,000
<PAGE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED AMERICAN SHARES, INC. - Continued
VALUE
SHARES/PRINCIPAL (NOTE 1)
______________________________________________________________________________________________________
______________________________________________________________________________________________________
COMMON STOCK - Continued
REAL ESTATE - Continued
35,000 Sovran Self Storage Inc.<F1>................................................ $ 805,000
60,000 Storage Equities, Inc....................................................... 982,500
75,000 Storage USA, Inc............................................................ 2,128,125
406,900 Vornado Realty Trust........................................................ 14,190,638
150,000 Weingarten Realty Investors................................................. 5,662,500
------------
50,835,825
RETAIL - (3.79%) ------------
65,000 The Gap, Inc................................................................ 2,266,875
165,000 Harcourt General, Inc....................................................... 7,012,500
130,000 Sears, Roebuck & Co......................................................... 7,783,750
217,600 Tandy Corp.................................................................. 11,288,000
------------
28,351,125
------------
TELECOMMUNICATIONS - (1.75%)
150,000 AirTouch Communications, Inc.<F1>........................................... 4,275,000
400,000 MCI Communications Corp..................................................... 8,800,000
------------
13,075,000
------------
Total Common Stock - (identified cost $513,478,610)......................... 656,812,815
------------
CONVERTIBLE PREFERRED STOCK - (8.50%)
50,000 Banc One Pfd. - Ser. C Conv. Pfd............................................ 2,912,500
50,000 Barnett Banks Inc., Ser. A Conv.Pfd......................................... 4,850,000
89,595 Citicorp, Ser. 15 Conv. Pfd................................................. 14,256,804
89,000 Delta Air Lines, Inc., Depository Shares, $3.50, Ser. C Conv. Pfd........... 5,206,500
50,000 First Bank Systems, Inc., Ser. 1991-A Conv. Pfd3,........................... 500,000
829,000 News Corp. Ltd. (The), Sponsored ADR Pfd.................................... 16,580,000
10,000 Norwest Corp., Depository Shares, $3.50, Ser. B Conv. Pfd................... 795,000
81,700 Salomon Inc. - Hewlett-Packard Company, ELK, 5.25%,01/01/97................. 7,843,200
99,000 SunAmerica Inc., Depository Shares, $2.78, Ser. D Conv. Pfd................. 4,554,000
22,500 Travelers Group Inc., 5.50%, Ser. B Conv. Pfd............................... 1,406,250
30,000 Unocal Corp., 3.50%, Conv. Pfd.<F1>......................................... 1,605,000
------------
Total Convertible Preferred Stock - (identified cost $54,381,293)........... 63,509,254
------------
CONVERTIBLE BONDS - (3.43%)
$4,000,000 AMR Corp., Conv. Sub. Qrtly Income Cap. Secs., 6.125%,11/01/94.............. 4,160,000
1,800,000 Amoco Corp., Sub. Deb., Ser. A Exchangeable, 7.375%,09/01/13................ 2,286,000
2,500,000 Bank of New York Co., Inc., Conv. Sub. Deb., 7.50%, 08/15/01................ 5,175,000
8,300,000 Centerpoint Properties Corp., Conv. Sub. Deb., 8.22%, 01/15/04.............. 9,296,000
4,000,000 Chevron Corp., Exchangeable Sr. Deb., 6.50%, 01/15/03....................... 4,740,000
------------
Total Convertible Bonds - (identified cost $24,011,202)..................... 25,657,000
------------
<PAGE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED AMERICAN SHARES, INC. - Continued
VALUE
PRINCIPAL (NOTE 1)
______________________________________________________________________________________________________
______________________________________________________________________________________________________
SHORT TERM - (0.34%)
$2,550,000 Lehman Brothers Repurchase Agreement, 6.17%, 07/03/95, dated 06/30/95,
repurchase value of $2,551,311 (collateralized by $2,545,000 par value
U.S. Treasury Notes, 6.25%, 02/15/03, market value $2,550,000)
- (identified cost $2,550,000)........................................... $ 2,550,000
------------
TOTAL INVESTMENTS - (100.16%) - (identified cost $594,421,105) - <F2>.... 748,529,069
LIABILITIES LESS OTHER ASSETS - (0.16%).................................. (1,189,451)
------------
NET ASSETS - (100%).................................................... $747,339,618
------------
------------
<FN>
<F1> Non-Income Producing Security
<F2> Aggregate cost for Federal Income Tax purposes is $594,421,105. At June 30, 1995
unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:
Unrealized appreciation........................................................ $157,772,117
Unrealized depreciation........................................................ (3,664,153)
------------
Net unrealized appreciation.................................................... $154,107,964
------------
------------
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED SPECIAL SHARES, INC.
<CAPTION>
VALUE
SHARES (NOTE 1)
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
COMMON STOCK - (97.03%)
AUTOMOTIVE - (3.43%)
<C> <S> <C>
25,000 Cooper Tire & Rubber Company................................................ $ 609,375
20,000 General Motors Corp., Class H............................................... 790,000
12,000 OEA, Inc.................................................................... 355,500
10,000 TBC Corporation<F1>......................................................... 107,500
-----------
1,862,375
-----------
CHEMICALS - (4.33%)
18,000 Engelhard Corporation....................................................... 771,750
30,00O OM Group, Inc............................................................... 855,000
60,000 Terra Industries, Inc....................................................... 727,500
-----------
2,354,250
CONSTRUCTION & ENGINEERING - (0.97%) -----------
24,000 Jacobs Engineering Group, Inc.<F1>.......................................... 528,000
ENERGY - (5.86%) -----------
30,000 Camco International, Inc.................................................... 701,250
40,000 Energy Ventures, Inc.<F1>................................................... 720,000
35,000 Enron Global Power & Pipelines<F1>.......................................... 831,250
20,000 Triton Energy Corporation<F1>............................................... 927,500
-----------
3,180,000
-----------
ENTERTAINMENT - (2.65%)
10,000 Cinar Films, Inc., Class B<F1>.............................................. 98,125
24,045 Gaylord Entertainment Company............................................... 607,136
23,000 Regal Cinemas, Inc.<F1>..................................................... 736,000
-----------
1,441,261
-----------
FINANCIAL SERVICES - (8.28%)
15,000 Alex Brown, Inc............................................................. 622,500
20,000 Collective Bancorp, Inc..................................................... 405,000
35,000 Schwab (Charles) Corp....................................................... 1,518,125
25,000 TCF Financial Corporation................................................... 1,187,500
5,000 United Asset Management Corporation......................................... 178,125
25,000 Washington Mutual, Inc...................................................... 585,938
-----------
4,497,188
HEALTHCARE PRODUCTS - (6.60%) -----------
10,000 Genentech, Inc.<F1>......................................................... 486,250
21,500 Guidant Corporation<F1>..................................................... 516,000
15,000 Merck & Company, Inc........................................................ 735,000
10,00O Ostex International, Inc.<F1>............................................... 232,500
20,000 Pyxis Corporation<F1>....................................................... 452,500
18,000 Roche Holding, Ltd. - Sponsored ADR......................................... 1,159,260
-----------
3,581,510
-----------
<PAGE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED SPECIAL SHARES, INC. - Continued
VALUE
SHARES (NOTE 1)
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
COMMON STOCK _ Continued
HEALTHCARE SERVICES - (6.44%)
40,000 Apria Healthcare Group, Inc.<F1>............................................ $ 1,130,000
28,300 Community Health Systems,Inc.<F1>........................................... 958,663
10,000 Health Care & Retirement Corp. of America<F1>............................... 292,500
10,000 Healthsource, Inc.<F1>...................................................... 350,000
15,000 PacificCare Health Systems, Inc., Class B<F1>............................... 765,000
-----------
3,496,163
-----------
HOUSEHOLD PRODUCTS/FURNISHINGS - (1.59%)
20,000 Duracell International, Inc................................................. 865,000
-----------
INDUSTRIAL PRODUCTS - (5.46%)
5,000 Augat, Inc.................................................................. 102,500
25,000 Chase Brass Industries,Inc.<F1>............................................. 293,750
15,300 Illinois Tool Works,Inc..................................................... 841,500
5,000 KEMET Corporation<F1>....................................................... 262,500
5,000 Minerals Technologies, Inc.................................................. 180,000
25,000 Molex Inc., Class A......................................................... 912,500
20,000 X-Rite, Inc................................................................. 370,000
-----------
2,962,750
INFORMATION PROCESSING - OFFICE EQUIPMENT - (3.24%) -----------
15,000 Xerox Corporation........................................................... 1,758,750
INFORMATION PROCESSING - SOFTWARE - (0.53%) -----------
7,500 Oracle Systems Corporation<F1>.............................................. 289,687
INSURANCE - (1.66%) -----------
15,000 Horace Mann Educators Corporation........................................... 345,000
10,000 Markel Corporation<F1>...................................................... 557,500
-----------
902,500
METALS - (2.22%) -----------
18,000 Nucor Corporation........................................................... 963,000
20,000 Universal Stainless & Alloy Products,Inc.<F1>............................... 242,500
-----------
1,205,500
PACKAGING - (2.29%) -----------
10,000 Sealed Air Corporation<F1>.................................................. 440,000
26,250 Sonoco Products Company..................................................... 649,687
10,000 United States Can Company<F1>............................................... 156,250
-----------
1,245,937
PAPER & FOREST PRODUCTS - (1.43%) -----------
25,000 Chesapeake Corporation...................................................... 778,125
RESTAURANTS - (2.50%) -----------
10,000 Cracker Barrel Old Country Store, Inc....................................... 206,250
38,000 Lone Star Steakhouse and Saloon, Inc.<F1>................................... 1,151,875
-----------
1,358,125
-----------
<PAGE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED SPECIAL SHARES, INC. - Continued
VALUE
SHARES (NOTE 1)
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
COMMON STOCK - Continued
RETAIL - (9.19%)
40,500 Eckerd Corporation <F1>..................................................... $ 1,296,000
15,000 Kohl's Corporation<F1>...................................................... 684,375
10,000 Lowe's Companies, Inc....................................................... 298,750
30,000 OfficeMax, Inc.<F1>......................................................... 836,250
25,000 Tiffany & Company........................................................... 850,000
28,000 Viking Office Products,Inc.<F1>............................................. 1,025,500
-----------
4,990,875
SERVICES - TEMPORARY HELP - (3.59%) -----------
15,000 Norrell Corporation......................................................... 285,000
40,500 On Assignment, Inc.<F1>..................................................... 769,500
35,000 Robert Half International,Inc.<F1>.......................................... 896,875
-----------
1,951,375
TECHNOLOGY - SEMICONDUCTORS/EQUIPMENT - (15.57%) -----------
15,000 Applied Materials, Inc...................................................... 1,299,375
15,000 Cypress Semiconductor Corporation<F1>....................................... 607,500
23,000 Fusion Systems Corporation<F1>.............................................. 787,750
10,000 Intel Corp.................................................................. 633,125
7,000 KLA Instruments Corporation<F1>............................................. 540,750
15,000 LAM Research Corporation.................................................... 960,000
40,000 LSI Logic Corporation<F1>................................................... 1,565,000
34,000 Tencor Instruments<F1>...................................................... 1,394,000
5,000 Texas Instruments, Inc...................................................... 669,375
-----------
8,456,875
TECHNOLOGY - OTHER - (5.30%)
23,000 Loral Corporation........................................................... 1,190,250
42,000 Thermo Electron Corporation<F1>............................................. 1,690,500
-----------
2,880,750
TELECOMMUNICATIONS - (0.93%) -----------
10,000 Boston Technology, Inc.<F1>................................................. 186,250
1,500 MobilMedia Corporation<F1>.................................................. 30,750
15,000 PairGain Technologies, Inc.<F1>............................................. 286,875
-----------
503,875
TRANSPORTATION - (2.97%) -----------
10,000 Bombardier, Inc. Class B.................................................... 243,260
30,000 Celadon Group, Inc.<F1>..................................................... 457,500
32,500 Fritz Companies, Inc.<F1>................................................... 909,656
-----------
1,610,416
-----------
Total Common Stock - (identified cost $42,041,707)...................... 52,701,287
-----------
<PAGE>
SELECTED FUNDS
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED SPECIAL SHARES, INC. - Continued
VALUE
PRINCIPAL (NOTE 1)
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
SHORT TERM - (4.63%)
$2,515,000 Lehman Brothers Repurchase Agreement, 6.14%,07/03/95, dated 06/30/95,
repurchase value of $2,516,293 (collateralized by $2,510,000 par value
U.S. Treasury Notes, 6.25%, 02/15/03, market value $2,515,000)
- (identified cost $2,515,000)............................................ $ 2,515,000
-----------
TOTAL INVESTMENTS - (101.66%) - (identified cost $44,556,707) - <F2>.......... 55,216,287
LIABILITIES LESS OTHER ASSETS - (1.66%)...................................... (902,867)
-----------
NET ASSETS - (100%)...................................................... $54,313,420
-----------
<FN> -----------
<F1> Non-Income Producing Security.
<F2> Aggregate cost for Federal Income Tax purposes is $44,556,707. At June 30, 1995
unrealized appreciation (depreciation) of securities for Federal Income Tax purposes
is as follows:
Unrealized appreciation................................................. $11,196,194
Unrealized depreciation................................................. (536,614)
Net unrealized appreciation........................................ $10,659,580
------------
------------
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
SELECTED CAPITAL PRESERVATION TRUST
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED U.S. GOVERNMENT INCOME FUND
<CAPTION>
VALUE
PRINCIPAL (NOTE 1)
__________________________________________________________________________________________________
__________________________________________________________________________________________________
ADJUSTABLE RATE MORTGAGES - (2.69%)
<C> <S> <C>
$105,100 Government National Mortgage Association, Pool No.008257,
6.125%, 06/20/17.......................................................... $ 105,462
32,949 Government National Mortgage Association, Pool No.008901,
6.00%, 01/20/22........................................................... 33,469
34,805 Government National Mortgage Association, Pool No. 008299,
7.125%, 09/20/23.......................................................... 35,447
34,330 Government National Mortgage Association, Pool No.008360,
7.00%, 01/20/24........................................................... 34,867
----------
Total ARM - (identified cost $194,664)................................. 209,245
----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - (12.34%)
147,526 9.00%, 09/01/10, Pool No.309702............................................ 153,358
263,571 8.00%, 09/01/21, Pool No.D2-7906............................................ 270,161
336,665 8.00%, 10/01/21, Pool No.D2-733434.......................................... 4,658
187,569 8.00%, 06/01/22, Pool No.D2-0670............................................ 191,995
----------
Total FHLMC - (identified cost $945,224)............................... 960,172
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - (9.76%)
288,652 8.00%, 04/01/99, Pool No. 50594............................................. 295,508
14,287 10.00%, 07/01/05, Pool No. 98835............................................ 14,966
22,201 10.00%, 08/01/05, Pool No. 99903............................................ 23,256
378,404 8.50%, 04/01/17, Pool No. 44500............................................. 393,275
15,562 8.50%, 07/01/17, Pool No. 51539............................................. 16,175
16,241 8.50%, 04/01/21, Pool No. 117725............................................ 16,749
----------
Total FNMA - (identified cost $743,879)................................ 759,929
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - (20.67%)
77,414 10.00%, 09/15/01, Pool No. 265.............................................. 75,104
75,862 9.00%, 04/15/16, Pool No. 147............................................... 80,383
96,827 9.00%, 05/15/16, Pool No. 161............................................... 102,419
236,470 9.00%, 06/15/16, Pool No. 157............................................... 250,124
12,327 9.00%, 07/15/16, Pool No. 162............................................... 13,040
126,889 9.00%, 07/15/16, Pool No. 162............................................... 134,450
146,155 9.00%, 11/15/16, Pool No. 179............................................... 154,595
104,921 9.00%, 06/15/17, Pool No. 225............................................... 110,879
95,009 9.00%, 08/15/17, Pool No. 209............................................... 100,404
38,736 9.00%, 05/15/18, Pool No. 235............................................... 40,900
92,878 9.00%, 08/15/18, Pool No. 258............................................... 98,066
237,877 9.00%, 08/15/19, Pool No. 227............................................... 250,925
189,004 8.50%, 10/15/19, Pool No. 277............................................... 197,277
----------
Total GNMA - (identified cost $1,538,287)................................... 1,608,566
----------
MEDIUM TERM NOTES - (12.55%)
500,000 Federal Home Loan Mortgage Corporation, 6.615%, 03/03/04.................... 487,360
500,000 Federal National Mortgage Association, 6.42%,12/01/08....................... 489,200
----------
Total Medium Term Notes - (identified cost $948,728)........................ 976,560
<PAGE>
SELECTED CAPITAL PRESERVATION TRUST
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED U.S. GOVERNMENT INCOME FUND - Continued
VALUE
PRINCIPAL (NOTE 1)
__________________________________________________________________________________________________
__________________________________________________________________________________________________
REAL ESTATE MORTGAGE INVESTMENT CONDUITS - (34.14%)
$500,000 Federal Home Loan Mortgage Corporation, 1992 CL 1340 H,7.50%,08/15/07....... $ 512,965
127,846 Federal Home Loan Mortgage Corporation, CL 1487 H,6.00%, 03/15/23........... 124,610
500,000 Federal National Mortgage Association, 1993 CL 11 O,7.35%, 02/25/08......... 504,530
500,000 Federal National Mortgage Association, 1993 CL 47 C,7.00%, 04/25/08......... 485,310
500,000 United States Department of Veteran Affairs, Mortgage Trust 1992-1,
7.75%, 07/15/17........................................................... 509,375
----------
Total REMIC - (identified cost $2,595,401).................................. 2,656,320
----------
SHORT TERM - (6.43%)
500,000 Federal Home Loan Bank Discount Note, 5.90%, 07/03/95
(identified cost $500,000)................................................ 500,000
TOTAL INVESTMENTS - (98.58%) - (identified cost $7,466,183) - <F1>.......... 7,670,792
OTHER ASSETS LESS LIABILITIES - (1.42%)..................................... 110,163
----------
NET ASSETS - (100%).................................................... $7,780,955
----------
----------
<FN>
<F1> Aggregate cost for Federal Income Tax purposes is $7,466,183. At June 30, 1995
unrealized appreciation (depreciation) of securities for Federal Income
Tax purposes is as follows:
Unrealized appreciation.................................................... $237,281
Unrealized depreciation.................................................... (32,672)
----------
Net unrealized depreciation........................................... $ 204,609
-----------
-----------
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
SELECTED CAPITAL PRESERVATION TRUST
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED DAILY GOVERNMENT FUND
<CAPTION> VALUE
PRINCIPAL (NOTE 1)
_____________________________________________________________________________________________________
_____________________________________________________________________________________________________
FEDERAL FARM CREDIT BANK - (3.62%)
<S> <C> <C>
$ 1,830,000 5.79%, 07/12/95 Discount Note............................................ $ 1,827,351
2,970,000 5.86%, 07/13/95 Discount Note............................................ 2,965,166
------------
Total Federal Farm Credit Bank - (identified cost $4,792,517).................... 4,792,517
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - (50.17%)
8,925,000 5.90%, 07/05/95 Discount Note............................................ 8,922,075
3,675,000 5.86%, 07/06/95 Discount Note............................................ 3,673,205
3,845,000 5.92%, 07/07/95 Discount Note............................................ 3,842,471
2,840,000 6.03%, 07/10/95 Discount Note............................................ 2,836,670
1,800,000 5.85%, 07/12/95 Discount Note............................................ 1,797,368
6,390,000 5.88%, 07/20/95 Discount Note............................................ 6,372,257
3,495,000 5.88%, 07/27/95 Discount Note............................................ 3,481,300
1,850,000 5.85%, 08/02/95 Discount Note............................................ 1,840,981
4,280,000 5.92%, 08/03/95 Discount Note............................................ 4,258,181
1,000,000 5.85%, 08/04/95 Discount Note............................................ 9,948,000
5,665,000 5.88%, 08/07/95 Discount Note............................................ 5,633,190
1,350,000 5.88%, 08/11/95 Discount Note............................................ 1,341,401
1,572,000 5.82%, 08/15/95 Discount Note............................................ 1,561,072
1,530,000 5.87%, 08/17/95 Discount Note............................................ 1,518,774
4,500,000 5.80%, 08/30/95 Discount Note............................................ 4,457,950
1,800,000 5.74%, 09/14/95 Discount Note............................................ 1,779,049
3,175,000 5.79%, 09/25/95 Discount Note............................................ 3,132,374
------------
Total Federal Home Loan Mortgage Corporation - (identified cost $66,396,318)..... 66,396,318
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - (46.50%)
4,215,000 5.85%, 07/11/95 Discount Note............................................ 4,209,521
1,875,000 5.875%, 07/13/95 Discount Note......................................... 1,871,939
1,500,000 5.99%, 07/17/95 Discount Note............................................ 1,496,506
2,915,000 5.90%, 07/18/95 Discount Note............................................ 2,907,834
12,555,000 5.90%, 07/19/95 Discount Note............................................ 12,522,044
5,000,000 5.91%, 07/24/95 Discount Note............................................ 4,982,763
5,000,000 6.14%, 07/25/95 Discount Note............................................ 4,981,147
1,400,000 5.75%, 07/27/95 Discount Note............................................ 1,394,633
4,045,000 5.85%, 08/09/95 Discount Note............................................ 4,020,679
5,000,000 5.89%, 08/11/95 Discount Note............................................ 4,968,096
1,705,000 5.88%, 08/14/95 Discount Note............................................ 1,693,304
2,975,000 5.89%, 08/15/95 Discount Note............................................ 2,954,070
1,345,000 5.84%, 08/29/95 Discount Note............................................ 1,332,563
1,240,000 5.73%, 09/14/95 Discount Note............................................ 1,225,592
3,035,000 5.79%, 09/15/95 Discount Note............................................ 2,998,878
2,440,000 5.78%, 09/20/95 Discount Note............................................ 2,409,051
<PAGE>
SELECTED CAPITAL PRESERVATION TRUST
SCHEDULE OF INVESTMENTS AT JUNE 30, 1995 (Unaudited)
SELECTED DAILY GOVERNMENT FUND _ Continued
VALUE
PRINCIPAL (NOTE 1)
____________________________________________________________________________________________________
____________________________________________________________________________________________________
FEDERAL NATIONAL MORTGAGE ASSOCIATION _ Continued
$ 2,025,000 5.78%, 09/22/95 Discount Note............................................. $ 1,998,665
3,620,000 5.73%, 09/28/95 Discount Note............................................. 3,569,872
------------
Total Federal National Mortgage Association - (identifiedcost $61,537,157)........ 61,537,157
------------
REPURCHASE AGREEMENT _ (0.24%)
315,000 Lehman Brothers Repurchase Agreement, 6.17%, 07/03/95, dated 06/30/95,
repurchase value of $315,162 (collateralized by $295,000 par value
U.S. Treasury Bonds, 7.25%, 08/15/22, market value $315,000)
- (identified cost $315,000)............................................ 315,000
------------
TOTAL INVESTMENTS - (100.53%) - (identified cost $133,040,992) - <F1>.................. 133,040,992
LIABILITIES LESS OTHER ASSETS - (0.53%)................................................ ( 701,801)
------------
NET ASSETS - (100%).................................................................. $132,339,191
------------
------------
<FN>
<F1> Aggregate cost for Federal income tax purposes is $133,040,992.
</FN>
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
SELECTED FUNDS
STATEMENT OF ASSETS AND LIABILITIES
At June 30, 1995 (Unaudited)
____________________________________________________________________________________________________
____________________________________________________________________________________________________
<CAPTION>
U.S.
AMERICAN SPECIAL GOVERNMENT DAILY
SHARES SHARES, INCOME GOVERNMENT
INC. INC. FUND Fund
________ _______ ___________ ___________ ____________
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
(see schedules of investments).............. $ 748,529,069 $ 55,216,287 $ 7,670,792 $ 133,040,992
Cash.......................................... 1,743,831 184,767 64,687 2,445
Receivables:
Dividends and interest...................... 2,371,897 21,458 57,795 162
Capital stock sold.......................... 520,904 19,100 _ 118,294
Investment securities sold.................. 2,103,352 279,091 4,251 _
Due from adviser............................ _ - 8,469 _
Prepaid expenses.............................. 67,827 19,800 10,120 9,301
_____________ ____________ ___________ _____________
Total assets.............................. 755,336,880 55,740,503 7,816,114 133,171,194
_____________ ____________ ___________ _____________
LIABILITIES:
Payables:
Capital stock reacquired.................... 210,729 9,753 _ 101,241
Investment securities purchased............. 6,925,225 1,337,098 _ _
Accrued expenses.............................. 861,308 80,232 13,914 103,659
Payable to adviser............................ _ _ _ 277,077
Distributions payable......................... _ _ 21,245 350,026
_____________ _____________ ___________ _____________
Total liabilities......................... 7,997,262 1,427,083 35,159 832,003
_____________ _____________ ___________ _____________
NET ASSETS:..................................... $ 747,339,618 $ 54,313,420 $ 7,780,955 $ 132,339,191
_____________ ____________ ___________ _____________
_____________ ____________ ___________ _____________
SHARES OUTSTANDING (NOTE 5)..................... 47,165,634 5,114,429 865,020 132,339,191
_____________ ____________ ___________ _____________
_____________ ____________ ___________ _____________
NET ASSET VALUE, offering and
redemption price per share (Net
assets ./. shares outstanding).............. $ 15.85 $ 10.62 $ 9.00 $ 1.00
__________ __________ _________ __________
__________ __________ _________ __________
NET ASSETS CONSIST OF:
Paid-in capital............................... $ 594,783,356 $ 40,563,235 $ 7,577,189 $ 132,339,191
Accumulated net investment income (deficit)... (285,937) _ _ _
Accumulated net realized
gain (loss)................................. (1,265,765) 3,090,605 (843) _
Unrealized appreciation
on investments.............................. 154,107,964 10,659,580 204,609 _
_____________ ____________ ___________ _____________
$ 747,339,618 $ 54,313,420 $ 7,780,955 $ 132,339,191
_____________ ____________ ___________ _____________
_____________ ____________ ___________ _____________
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
SELECTED FUNDS
STATEMENT OF OPERATIONS
For the six months ended June 30, 1995 (Unaudited)
<CAPTION>
U.S.
AMERICAN SPECIAL GOVERNMENT DAILY
SHARES SHARES INCOME GOVERNMENT
INC. INC. FUND FUND
________ ________ __________ __________
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends.................................. $ 7,825,870 $ 210,824 $ _ $ _
Interest................................... 1,032,210 65,679 318,246 3,798,016
____________ __________ ___________ _____________
Totalincome............................ 8,858,080 276,503 318,246 3,798,016
____________ __________ ___________ _____________
Expenses:
Management fees (Note 2)................... 2,058,011 173,909 20,596 187,228
Custodian fees 118,885 21,434 11,536 29,724
Transfer agent fees........................ 389,281 68,012 6,795 46,728
Audit fees................................. 13,584 6,053 3,537 11,977
Legal fees................................. 76,467 14,938 1,077 20,197
Reports to shareholders.................... 52,784 7,553 534 4,940
Directors fees and expenses................ 101,003 10,557 1,422 17,890
Registration and filing fees............... 43,865 15,967 10,172 45,763
Miscellaneous.............................. 63,953 8,143 2,321 7,419
Commissions paid under
distribution plan (Note 3)............... 805,421 62,148 10,298 156,023
____________ ___________ ___________ _____________
Total expenses......................... 3,723,254 388,714 68,288 527,889
Reimbursement of expenses by
adviser (Note 2)......................... _ _ (8,469) (54,263)
____________ ___________ ___________ _____________
Net expenses........................... 3,723,254 388,714 59,819 473,626
____________ ___________ ___________ _____________
Net investment income (loss)........... 5,134,826 (112,211) 258,427 3,324,390
____________ ___________ ___________ _____________
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from
investment transactions.................. (832,077) 3,117,788 4,908 _
Net increase in unrealized
appreciation of investments
during the period........................ 122,507,416 5,949,246 550,560 _
____________ __________ ___________ _____________
Net realized and unrealized
gain (loss) on investments........... 121,675,339 9,067,034 555,468 _
____________ __________ ___________ _____________
Net increase in net
assets resulting from
operations............................. $126,810,165 $8,954,823 $ 813,895 $ 3,324,390
____________ __________ ___________ _____________
____________ __________ ___________ _____________
</TABLE>
See Notes to Financial Statements
<PAGE>
<TABLE>
SELECTED FUNDS
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended June 30, 1995 (Unaudited)
________________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________________
<CAPTION>
U.S.
AMERICAN SPECIAL GOVERNMENT DAILY
SHARES SHARES INCOME GOVERNMENT
INC. INC. FUND FUND
________ _______ __________ __________
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ 5,134,826 $ (112,211) $ 258,427 $ 3,324,390
Net realized gain (loss) from
investment transactions...................... (832,077) 3,117,788 4,908 _
Net increase in unrealized
appreciation of investments.................. 122,507,416 5,949,246 550,560 _
Net increase in net
assets resulting from operations............. 126,810,165 8,954,823 813,895 3,324,390
_____________ ___________ ___________ ____________
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income.......................... (5,420,763) _ (258,427) (3,324,390)
Realized gains from investment
transactions................................. _ (716,144) (25,186) _
CAPITAL SHARE
TRANSACTIONS
(NOTE 5)....................................... 96,546,237 (1,199,923) (3,012,237) 10,453,368
_____________ ___________ ____________ ____________
Total increase (decrease)
in net assets.............................. 217,935,639 7,038,756 (2,481,955) 10,453,368
NET ASSETS:
Beginning of period............................ 529,403,979 47,274,664 10,262,910 121,885,823
_____________ ___________ ___________ ____________
End of period (including
accumulated deficit in net
investment income for
American Shares of $(285,937)................ $ 747,339,618 $54,313,420 $ 7,780,955 $132,339,191
_____________ ___________ ___________ ____________
_____________ ___________ ___________ ____________
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
SELECTED FUNDS
STATEMENT OF CHANGES IN NET ASSETS
For the year ended December 31, 1994
__________________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________________
<CAPTION>
U.S.
AMERICAN SPECIAL GOVERNMENT DAILY
SHARES SHARES INCOME GOVERNMENT
INC. INC. FUND FUND
_________ ________ __________ ___________
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................ $ 6,752,031 $ (133,507) $ 529,002 $ 1,628,403
Net realized gain from
investment transactions................... 26,863,975 3,157,926 19,435 _
Net decrease in unrealized
appreciation of investments.............. (48,149,370) (4,390,260) (794,831) _
_____________ ___________ ___________ ____________
Net increase (decrease) in net
assets resulting from operations.......... (14,533,364) (1,365,841) (246,394) 1,628,403
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income....................... (6,752,031) _ (529,002) (1,628,403)
Realized gains from investment transactions. (31,189,684) (4,574,351) _ _
Paid-in Capital............................. (443,937) _ _ _
CAPITAL SHARE
TRANSACTIONS
(NOTE 5).................................... 130,931,017 (42,063) 702,090 113,154,297
_____________ ___________ ___________ ____________
Total increase (decrease)
in net assets........................... 78,012,001 (5,982,255) (73,306) 113,154,297
NET ASSETS:
Beginning of period......................... 451,391,978 53,256,919 10,336,216 8,731,526
_____________ ___________ ___________ ____________
End of period............................... $ 529,403,979 $47,274,664 $10,262,910 $121,885,823
_____________ ___________ ___________ ____________
_____________ ___________ ___________ ____________
</TABLE>
See Notes to Financial Statements.
<PAGE>
SELECTED FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Selected Funds consist of Selected American Shares, Inc.,
Selected Special Shares, Inc. and the Selected Capital Preservation Trust.
The Companies and Trust are registered under the Investment Company Act
of 1940, as amended, as diversified, open-end management investment
companies. The Selected Capital Preservation Trust operates as a series
fund, consisting of the U.S. Government Income Fund and Daily Government
Fund. The Trust accounts separately for the assets, liabilities and
operations of each series. Selected/Venture Advisers, L.P. became
investment adviser effective May 1, 1993. Prior to May 1, 1993, Selected
Financial Services, Inc. was the investment manager. The following is a
summary of significant accounting policies followed by the Funds in the
preparation of financial statements.
A. VALUATION OF SECURITIES - Securities listed on national securities
exchanges are valued at the last reported sales price on the day of
valuation. Securities traded in the over the counter market and listed
securities for which no sale was reported on that date are stated at the
last quoted bid price. Securities for which market quotations are not
readily available are valued at fair value as determined by the Boards of
Directors/Trustees. The Daily Government Fund uses the amortized cost
method of valuing investment securities which represents fair value as
determined by the Board of Trustees.
B. FEDERAL INCOME TAXES - It is each Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its income to
shareholders.
C. Other - Securities transactions are accounted for on the trade date
(date the order to buy or sell is executed) with gain or loss on the sale of
securities being determined based upon identified cost. Interest income is
recorded on the accrual basis. Dividends and distributions to shareholders
are recorded on the ex-dividend date.
Note 2 - Investment Advisory Fees
Advisory fees are paid monthly to the investment adviser. The rate
for American Shares, Inc. is .65% on the first $500 million of average
daily net assets, .60% on the next $500 million and .55% of average daily
net assets in excess of $1 billion. The rate for Special Shares, Inc. is .70%
on the first $50 million of average daily net assets, .675% on the next
$100 million, .65% on the next $100 million and .60% of average daily net
assets in excess of $250 million. The rate for the U.S. Government Income
Fund is .50% of 1% of average daily net assets. The rate for the Daily
Government Fund is based upon daily net assets at an annual rate of .30%.
The Adviser will reimburse each Fund for any expenses (including the fee
under the agreement but excluding interest, taxes, brokerage fees,
payments made to the Distributor under any Rule 12b-1 Distribution Plan
and, where permitted, extraordinary expenses) in excess of the most
restrictive applicable expense limitation prescribed by any statute or
regulatory authority of any jurisdiction in which each Fund's shares are
qualified for offer and sale. The Adviser believes that the most
restrictive expense limitations presently applicable are 2 1/2% for the
first $30 million of average net assets, 2% for the next $70 million of
average net assets and 1 1/2% for any additional average net assets. The
Adviser has voluntarily agreed to reimburse the U.S. Government Income
Fund and the Daily Fund for any expenses in excess of 1.44% and .75%,
respectively, of average net assets.
Note 3 - Distribution
For services under the distribution agreement, the Funds pay a fee of
.25% of average daily net assets. For the six months ended June 30, 1995,
for American Shares, Inc., Special Shares Inc., U.S. Government Income and
Daily Government Funds, the Funds incurred distribution services fees
totaling $805,421, $62,148, $10,298, and $156,023, respectively.
<PAGE>
SELECTED FUNDS
NOTES TO FINANCIAL STATEMENTS - Continued
June 30, 1995 (Unaudited)
__________________________________________________________________________
__________________________________________________________________________
Note 4 - Purchases and Sales of Securities
Purchases and sales of investment securities (excluding short-term
securities) during the six months ended June 30, 1995 for American
Shares, Inc., Special Shares, Inc. and U.S. Government Income Fund were as
follows:
<TABLE>
<CAPTION>
AMERICAN SPECIAL U.S. GOVERNMENT
SHARES, INC. SHARES, INC. INCOME FUND
____________ ____________ _______________
<S> <C> <C> <C>
Cost of purchases................. $ 186,021,075 $ 33,658,150 $ 4,533,405
Proceeds of sales................. $ 90,876,063 $ 28,278,757 $ 7,668,891
</TABLE>
Note 5 - Capital Stock
At June 30, 1995, there were 100 million shares of capital stock of
Selected American Shares, Inc. ($1.25 par value per share) authorized. At
June 30, 1995, there were 100 million shares of capital stock of Selected
Special Shares, Inc. ($0.25 par value per share) authorized. At June 30,
1995, there were unlimited shares of capital stock of Selected Capital
Preservation Trust ($0.10 par value per share) authorized. Transactions in
capital stock were as follows:
<TABLE>
Six months ended
June 30, 1995 (Unaudited)
<CAPTION>
U.S.
AMERICAN SPECIAL GOVERNMENT DAILY
SHARES SHARES INCOME GOVERNMENT
INC. INC. FUND FUND
________ _______ __________ ___________
<S> <C> <C> <C> <C>
Shares sold........................... 9,057,969 176,024 40,135 76,472,984
Shares issued in reinvestment
of distributions.................... 328,223 69,714 26,495 3,159,018
__________ ________ ________ ___________
9,386,192 245,738 66,630 79,632,002
Shares redeemed....................... (2,673,515) (373,948) (416,133) (69,178,634)
__________ ________ ________ ___________
Net increase (decrease)............. 6,712,677 (128,210) (349,503) 10,453,368
__________ ________ ________ ___________
__________ ________ ________ ___________
Proceeds from shares sold............. $130,076,177 $ 1,710,888 $ 357,996 $76,472,984
Proceeds from shares issued in
reinvestment of distributions....... 4,941,743 658,831 231,986 3,159,018
____________ ___________ ___________ ___________
135,017,920 2,369,719 589,982 79,632,002
Cost of shares redeemed............... (38,471,683) (3,569,642) (3,602,219) (69,178,634)
____________ ___________ ___________ ___________
Net increase (decrease)............. $ 96,546,237 $(1,199,923) $(3,012,237) $10,453,368
____________ ___________ ___________ ___________
____________ ___________ ___________ ___________
</TABLE>
<PAGE>
SELECTED FUNDS
NOTES TO FINANCIAL STATEMENTS - Continued
June 30, 1995 (Unaudited)
________________________________________________________________________________
________________________________________________________________________________
Note 5 - Capital Stock - (continued)
<TABLE>
Year ended
December 31, 1994
<CAPTION> ----------------------------------------------------------------------------
U.S.
AMERICAN SPECIAL GOVERNMENT DAILY
SHARES SHARES INCOME GOVERNMENT
INC. INC. FUND FUND
________ _______ __________ __________
<S> <C> <C> <C> <C>
Shares sold.................................. 16,923,819 939,546 355,338 211,405,719
Shares issued in connection with the
acquisitionof Selected Daily Income
Fund (Note 6)............................ _ _ _ 20,857,578
Shares issued in reinvestment
of distributions........................... 2,609,127 455,007 48,701 1,384,606
__________ ___________ ________ ____________
19,532,946 1,394,553 404,039 233,647,903
Shares redeemed.............................. (10,019,942) (1,371,205) (313,474) (120,493,606)
__________ ___________ ________ ____________
Net increase (decrease).................. 9,513,004 23,348 90,565 113,154,297
__________ ___________ ________ ____________
__________ ___________ ________ ____________
Proceeds from shares sold.................... $ 239,594,107 $ 9,353,457 $ 3,031,765 $211,405,719
Proceeds from shares issued in connection
with the acquisition of Selected Daily
Income Fund (Note 6)....................... _ _ - 20,857,578
Proceeds from shares issued in
reinvestment of distributions.............. 34,897,106 4,209,023 427,420 1,384,606
_____________ ___________ ___________ ____________
274,491,213 13,562,480 3,459,185 233,647,903
Cost of shares redeemed...................... (143,560,196) (13,604,543) (2,757,095) (120,493,606)
_____________ ___________ ___________ ____________
Net increase (decrease).................. $ 130,931,017 $ (42,063) $ 702,090 $113,154,297
_____________ ___________ ___________ ____________
_____________ ___________ ___________ ____________
</TABLE>
Note 6 - REORGANIZATION OF SELECTED DAILY INCOME FUND
On April 23, 1994 the shareholders of Selected Daily Income Fund
("Income") approved a Plan of Reorganization ("the Plan"). The Plan
provided for the transfer of the assets and liabilities of Income to
Selected Daily Government Fund. The transaction was effected on April
29, 1994, in a tax-free exchange by issuing 20,839,994 shares of Selected
Daily Government Fund for an equal number of shares of Income at a value
of $1.00 per share. There was no unrealized appreciation or depreciation
at that date. The aggregate net assets of Income and Selected Daily
Government Fund immediately before the acquisition were $20,839,994
and $6,140,964, respectively.
<PAGE>
SELECTED FUNDS
FINANCIAL HIGHLIGHTS
AMERICAN SHARES, INC.
The following financial information represents selected data for
each share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
Six
Months
Ended
June 30,
1995 Year ended December 31,
-----------------------------------------------------------------------
(Unaudited) 1994 1993<F2> 1992 1991 1990
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $13.09 $ 14.59 $ 17.13 $ 18.43 $ 12.79 $ 13.81
Income From Investment Operations
---------------------------------
Net Investment Income.................. .11 .20 .24 .19 .23 .26
Net Gains or Losses on Securities
(both realized and unrealized)....... 2.77 (.66) .70 .89 5.65 (.81)
------ ------- ------- ------- ------- -------
Total From Investment Operations..... 2.88 (.46) .94 1.08 5.88 (.55)
Less Distributions
------------------
Dividends (from net investment
income).............................. (.12) (.20) (.24) (.19) (.23) (.35)
Distributions (from capital gains)..... _ (.83) (3.24) (2.19) _ (.04)
Distributions in Excess of Net
Investment Income.................... _ (.01) _ _ (.01) (.08)
------ ------- ------- ------- ------- -------
Total Distributions.................. (.12) (1.04) (3.48) (2.38) (.24) (.47)
------ ------- ------- ------- ------- -------
Net Asset Value, End of Period........... $15.85 $ 13.09 $ 14.59 $ 17.13 $ 18.43 $ 12.79
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total Return............................. 22.05% (3.20)% 5.42% 5.78% 46.37% (3.90)%
------------
Ratios/Supplemental Data
------------------------
Net Assets, End of Period
(000 omitted)........................ 747,340 529,404 451,392 580,889 711,905 400,597
Ratio of Expenses to Average
Net Assets........................... 1.16%<F3> 1.26% 1.01%<F1> 1.17% 1.19% 1.35%
Ratio of Net Income to Average
Net Assets........................... 1.59%<F3> 1.42% 1.37% .95% 1.41% 2.04%
Portfolio Turnover Rate................ 14% 23% 79% 50% 21% 48%
<FN>
<F1> Had the Adviser not absorbed certain expenses, the ratio of expenses
for the year ended December 31, 1993 would have been 1.22%.
<F2> Effective May 1, 1993, Selected/Venture Advisers, L.P. became the
investment adviser. Until May 1, 1993, Selected Financial Services, Inc.
was the investment adviser.
<F3> Annualized
</FN>
</TABLE>
<PAGE>
SELECTED FUNDS
FINANCIAL HIGHLIGHTS
SPECIAL SHARES, INC.
The following financial information represents selected data for
each share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
Six
Months
Ended
June 30,
1995 Year ended December 31,
----------------------------------------------------------------------
(Unaudited) 1994 1993<F2><F3> 1992<F3> 1991<F3> 1990<F3>
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period...... $ 9.02 $ 10.20 $ 10.40 $ 10.16 $ 9.04 $ 9.95
Income From Investment Operations
---------------------------------
Net Investment Income................... (.02) (.03) _ .07 .12 .17
Net Gains or Losses on Securities
(both realized and unrealized)........ 1.76 (.22) 1.10 .78 2.11 (.85)
------- ------- ------- ------- ------ ------
Total From Investment Operations...... 1.74 (.25) 1.10 .85 2.23 (.68)
Less Distributions
------------------
Dividends (from net investment
income)................................ _ _ _ (.07) (.13) (.20)
Distributions (from capital gains)....... (.14) (.93) (1.30) (.54) (.98) (.03)
------- ------- ------- ------- ------ ------
Total Distributions.................... (.14) (.93) (1.30) (.61) (1.11) (.23)
------- ------- ------- ------- ------ ------
Net Asset Value, End of Period............. $ 10.62 $ 9.02 $ 10.20 $ 10.40 $10.16 $ 9.04
------- ------- ------- ------- ------ ------
------- ------- ------- ------- ------ ------
Total Return............................... 20.16% (2.56)% 10.81% 8.43% 25.53% (6.87)%
------------
Ratios/Supplemental Data
------------------------
Net Assets, End of Period
(000 omitted).......................... 54,313 47,275 53,257 57,605 60,216 50,474
Ratio of Expenses to Average
Net Assets............................. 1.56%<F4> 1.41%<F1> 1.24%<F1> 1.41% 1.39% 1.41%
Ratio of Net Income to Average
Net Assets............................. (.45)%<F4> (.27)% (.07)% .56% 1.11% 1.81%
Portfolio Turnover Rate.................. 60% 99% 100% 41% 74% 87%
<FN>
<F1> Had the former manager not absorbed certain expenses, the ratio of
expenses for the year ended December 31, 1992 would have been 1.47%.
Had the Adviser not absorbed certain expenses, the ratio of expenses for
the years ended December 31, 1993 and December 31, 1994 would have
been 1.51% and 1.62%, respectively.
<F2>Effective May 1, 1993, Selected/Venture Advisers, L.P. became the
investment adviser. Until May 1, 1993, Selected Financial Services, Inc.
was the investment adviser.
<F3>Per share data has been restated to give effect to a 2 for 1 stock
split to shareholders of record as of the close of January 4, 1994.
<F4>Annualized
</FN>
</TABLE>
<PAGE>
SELECTED FUNDS
FINANCIAL HIGHLIGHTS
SELECTED U.S. GOVERNMENT INCOME FUND
The following financial information represents selected data for
each share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
Six
Months
Ended
June 30,
1995 Year ended December 31,
--------------------------------------------------------------------
(Unaudited) 1994 1993<F2> 1992 1991 1990
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 8.45 $ 9.20 $ 9.31 $ 9.70 $ 9.22 $ 9.20
Income From Investment Operations
---------------------------------
Net Investment Income.................. .27 .50 .56 .61 .60 .63
Net Gains or Losses on Securities
(both realized and unrealized)....... .58 (.75) .21 (.13) .58 .11
------ ------ ------ ------ ------ ------
Total From Investment Operations..... .85 (.25) .77 .48 1.18 .74
Less Distributions
------------------
Dividends (from net investment
income).............................. (.27) (.50) (.56) (.61) (.60) (.63)
Distributions (from capital gains)..... (.03) _ (.32) (.26) _ _
Distributions in Excess of Net
Investment Income.................... _ _ _ _ (.10) (.09)
------ ------ ------ ------ ------ ------
Total Distributions.................. (.30) (.50) (.88) (.87) (.70) (.72)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period........... $ 9.00 $ 8.45 $ 9.20 $ 9.31 $ 9.70 $ 9.22
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total Return............................. 10.12% (2.71)% 7.99% 5.11% 13.46% 8.53%
------------
Ratios/Supplemental Data
------------------------
Net Assets, End of Period
(000 omitted)........................ 7,781 10,263 10,336 13,945 22,019 21,153
Ratio of Expenses to Averag
Net Assets........................... 1.44%<F3><F1> 1.42%<F1> 1.34%<F1> 1.44%<F1> 1.41% 1.44%
Ratio of Net Income to Average
Net Assets........................... 6.27%<F3> 5.70% 5.85% 6.26%<F1> 6.51% 6.95%
Portfolio Turnover Rate................ 60% 65% 29% 53% 36% 29%
<FN>
<F1> Had the former manager not absorbed certain expenses, the ratio of
expenses would have been 1.72% for the year ended December 31, 1992 and
1.59% for the year ended December 31, 1989. Had the Adviser not absorbed
certain expenses, the ratio of expenses for the years ended December 31,
1993 and December 31, 1994 would have been 1.88% and 1.69%,
respectively. Had the Adviser not absorbed certain expenses, the ratio of
expenses for the six months ended June 30, 1995 would have been 1.66%.
<F2> Effective May 1, 1993, Selected/Venture Advisers, L.P. became the
investment adviser. Until May 1, 1993, Selected Financial Services, Inc.
was the investment adviser.
<F3> Annualized
</FN>
</TABLE>
<PAGE>
SELECTED FUNDS
FINANCIAL HIGHLIGHTS
SELECTED DAILY GOVERNMENT FUND
The following financial information represents selected data for
each share of capital stock outstanding throughout each period:
<TABLE>
Six
Months
Ended
June 30,
1995 Year ended December 31,
-------------------------------------------------------------------------
(Unaudited) 1994 1993<F2> 1992 1991 1990
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income From Investment Operations
---------------------------------
Net Investment Income................ .026 .034 .023 .030 .054 .074
Less Distributions
------------------
Dividends (from net
investment income)................. (.026) (.034) (.023) (.030) (.054) (.074)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total Return........................... 5.46% 3.51% 2.34% 3.07% 5.51% 7.66%
------------
Ratios/Supplemental Data
------------------------
Net Assets, End of Period
(000 omitted)...................... 132,339 121,886 8,732 6,626 30,706 174,914
Ratio of Expenses to Average
Net Assets......................... .75%<F3><F1> .75%<F1> .75%<F1> .75%<F1> .68% .63%
Ratio of Net Income to Average
Net Assets......................... 5.32%<F3> 3.44% 2.31% 3.02%<F1> 5.37% 7.39%
<FN>
<F1> Had the former manager not absorbed certain expenses, the ratio of
expenses for the year ended December 31, 1992 would have been 1.23%.
Had the Adviser not absorbed certain expenses, the ratio of expenses for
the years ended December 31, 1993 and December 31, 1994 would have
been 2.29% and 1.07%, respectively. Had the Adviser not absorbed certain
expenses, the ratio of expenses for the six months ended June 30, 1995
would have been 0.85%.
<F2> Effective May 1, 1993, Selected/Venture Advisers, L.P. became the
investment adviser. Until May 1, 1993, Selected Financial Services, Inc.
was the investment adviser.
<F3> Annualized
</FN>
</TABLE>
<PAGE>
SELECTED
FUNDS
124 East Marcy Street Santa Fe, New Mexico 87501
-------------------------------------------------
-------------------------------------------------
Directors Officers
William P. Barr Robert J. Greenebaum
Floyd A. Brown Chairman
William G. Cole Martin H. Proyect
Shelby M.C. Davis President
Robert J. Greenebaum Shelby M.C. Davis
Walter E. Hoadley Executive Vice President
James J. McMonagle Carl R. Luff
Martin H. Proyect Vice President, Treasurer
Larry Robinson & Assistant Secretary
Louis R. Proyect
Vice President
& Secretary
Raymond O. Padilla
Vice President
& Assistant Secretary
Eileen R. Street
Assistant Treasurer
& Assistant Secretary
Investment Adviser & Distributor
Selected/Venture Advisers, L.P.
124 East Marcy Street
Santa Fe, New Mexico 87501
Transfer Agent & Custodian
Investors Fiduciary Trust Company
P.O. Box 419782
Kansas City, MO 64141-6782
Counsel
D'Ancona & Pflaum
30 North LaSalle Street
Chicago, Illinois 60602
--------------------------------------------
--------------------------------------------
For more information about the Selected
Funds, including management fee,charges and
expenses, see the current prospectus which
must precede or accompany this report.
--------------------------------------------
--------------------------------------------
9508-60 SF70
