MAXUS LAUREATE FUND
STATEMENT OF ASSETS & LIABILITIES
DECEMBER 31, 1996
Assets:
Investment Securities at Market Value
(Identified Cost - $3,061,059) $3,166,923
Cash 76,894
Receivables:
Investment Securities Sold 0
Dividends and Interest 10,260
Other Assets 6,782
----------
Total Assets $3,260,859
Liabilities
Payables:
Investment Securities Purchased $0
Shareholder Distributions 71,412
Accrued Expenses 26,483
Other 7,240
----------
Total Liabilities $105,135
Net Assets $3,155,724
Net Assets Consist of:
Capital Paid In $3,068,647
Accumulated Realized Gain (Loss) on Investments - Net (18,787)
Unrealized Appreciation in Value
of Investments Based on Identified Cost - Net 105,864
----------
Net Assets, for 291,667 Shares Outstanding $3,155,724
Net Asset Value and Redemption Price
Per Share ($3,155,724/291,667 shares) $10.82
Offering Price Per Share $10.82
STATEMENT OF OPERATIONS
DECEMBER 31, 1996
Investment Income:
Dividends $61,168
Interest 5,675
-------
Total Investment Income $66,843
Expenses:
Accounting and Pricing 13,378
Amortization of Organization Expense 6,530
Audit 6,237
Custody 1,068
Distribution Plan Expenses 10,472
Legal 9,719
Management Fees (Note 2) 21,014
Registration 1,890
Trustee Fees (Note 3) 1,500
Printing & Miscellaneous 10,231
------
Total Expenses 82,039
Net Investment Income (Loss) (15,196)
Realized and Unrealized Gain (Loss) on Investments
Realized Gain (Loss) on Investments 251,661
Capital Gains from Mutual Funds 52,691
Unrealized Gain (Loss) from Appreciation
(Depreciation) on Investments 113,913
--------
Net Realized and Unrealized Gain
(Loss) on Investments $418,265
Net Increase (Decrease) in Net Assets from Operations $403,069
========
The accompanying notes are an integral
part of the financial statements
<PAGE>
MAXUS LAUREATE FUND
STATEMENT OF CHANGES IN NET ASSETS
01/01/96 01/01/95
to to
12/31/96 12/31/95
From Operations:
Net Investment Income (Loss) $(15,196) $(28,773)
Net Realized Gain (Loss) on Investments 304,352 263,105
Net Unrealized Appreciation (Depreciation) 113,913 (12,316)
------- --------
Increase (Decrease) in Net Assets from 403,069 222,016
Operations
From Distributions to Shareholders
Net Investment Income (Loss) 0 0
Net Realized Gain (Loss) from Security Transactions (289,117) (163,629)
--------- ---------
Net Increase (Decrease) from Distributions (289,117) (163,629)
From Capital Share Transactions:
Proceeds From Sale of 171,326 Shares 121,069 1,869,913
Net Asset Value of 20,120 shares issued on 217,705 147,644
Reinvestment of Dividends
Cost of 53,559 Shares Redeemed (555,837) (815,064)
---------- ---------
1,531,781 (546,351)
Net Increase (Decrease) in Net Assets 1,645,733 (487,964)
Net Assets at Beginning of Period (including
undistributed net investment income
of 0 and $0, respectively) 1,509,991 1,997,955
Net Assets at End of Period (including undistributed
net investment income of $0 and $0, respectively) $3,155,724 $1,509,991
========== ==========
FINANCIAL HIGHLIGHTS
Selected data for a share of common
stock outstanding throughout the period:
01/01/96 01/01/95 01/01/94 05/01/93
to to to to
12/31/96 12/31/95 12/31/94 12/31/93*
---------------------------------------
Net Asset Value -
Beginning of Period $9.82 $9.62 $9.96 $10.00
Net Investment Income (0.08) (0.19) (0.08) (0.07)
Net Gains or (Losses) on Securities
(realized and unrealized) 2.14 1.57 (0.26) 1.16
---- ---- ------ ----
Total from Investment Operations 2.06 1.38 (0.34) 1.09
Dividends
(from net investment income) 0.00 0.00 0.00 0.00
Distributions
(from capital gains) (1.06) (1.18) 0.00 (1.13)
Return of Capital 0.00 0.00 0.00 0.00
------ ------ ---- ------
Total Distributions (1.06) (1.18) 0.00 (1.13)
Net Asset Value -
End of Period $10.82 $9.82 $9.62 $9.96
Total Return 21.03% 14.41% (3.41)% 8.62%
Ratios/Supplemental Data
Net Assets -
End of Period (Thousands) 3,156 1,510 1,998 2,114
Ratio of Expenses to Average Net Assets 3.92% 3.85% 3.60% 2.42%
Ratio of Net Income to Average Net Assets (0.73)% (1.69)% (0.87)% (0.66)%
Portfolio Turnover Rate 1267% 1377% 469% 152%
* Weighted Average Used
The accompanying notes are an integral
part of the financial statements
<PAGE>
MAXUS LAUREATE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
1.) Significant Accounting Policies
The Fund is a diversified, open-end management investment company, organized as
a Trust under the laws of the State of Ohio by a Declaration of Trust dated
February 10, 1993. Significant accounting policies of the Fund are presented
below:
SECURITY VALUATION:
The Fund intends to invest exclusively in other open-end management investment
companies (mutual funds). The investments in mutual funds are carried at market
value. The market quotation used for mutual funds is the net asset value on the
date on which the valuation is made.
SECURITY TRANSACTION TIMING:
Security transactions are recorded on the dates transactions are entered into
(the trade dates). Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded as earned. The
fund uses the identified cost basis in computing gain or loss on sale of
investment securities. Discounts and premiums on securities purchased are
amortized over the life of the respective securities.
INCOME TAXES:
It is the Fund's policy to distribute annually, prior to the end of the calendar
year, dividends sufficient to satisfy excise tax requirements of the Internal
Revenue Service. This Internal Revenue Service requirement may cause an excess
of distributions over the book year-end accumulated income. In addition, it is
the Fund's policy to distribute annually, after the end of the calendar year,
any remaining net investment income and net realized capital gains.
ESTIMATES:
The preparation of financial statements in conformity with generally accepted
accounting principles requires managment to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilites at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
2.) Investment Advisory Agreement
The Fund has entered into an investment advisory and administration agreement
with Maxus Asset Management Inc, a wholly owned subsidiary of Resource
Management Inc. The Investment Advisor receives from the Fund as compensation
for its services to the Fund an annual fee of 1% on the first $150,000,000 of
the Fund's net assets, and 0.75% of the Fund's net assets in excess of
$150,000,000.
3.) Related Party Transactions
Resource Management, Inc. has three wholly owned subsidiaries which provide
services to the Fund. These subsidiaries are Maxus Asset Management Inc, Maxus
Securities Corp, and Maxus Information Systems Inc. Maxus Asset Management was
paid $21,014 in investment advisory fees during the twelve months ended December
31, 1996. Maxus Securities, who served as the national distributor of the Fund's
shares, was reimbursed $10,472 for distribution expenses. Maxus Information
Systems, who provides accounting and shareholder services, received fees
totaling $13,378 for services rendered to the Fund for the twelve months ended
December 31, 1996. Maxus Securities is a registered broker-dealer. Maxus
Securities effected substantially all of the investment portfolio transactions
for the Fund. The fees collected by Maxus Securities represent transaction
charges imposed by the custodian. Maxus Securities pays these charges to the
custodian without a mark-up.
At December 31, 1996, Maxus Securities Corp owned 10,000 shares in the Fund.
Certain officers and/or trustees of the Fund are officers and/or directors of
the Investment Advisor and Administrator. Each director who is not an
"affiliated person" receives an attendance fee of $100 per meeting.
<PAGE>
MAXUS LAUREATE FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
4.) Capital Stock And Distribution
At December 31, 1996 an indefinite number of shares of capital stock ($.10 par
value) were authorized, and paid-in capital amounted to $3,068,647. Transactions
in common stock were as follows:
Shares sold 171,326
Shares issued to shareholders in
reinvestment of dividends 20,120
-------
191,446
Shares redeemed (53,559)
-------
Net Increase (Decrease) 137,887
Shares Outstanding:
Beginning of Period 153,780
-------
End of Period 291,667
=======
Distributions to shareholders are recorded on the ex-dividend date. Payments in
excess of net investment income or of accumulated net realized gains reported in
the financial statements are due primarily to book/tax differences. Payments due
to permanent differences have been charged to paid in capital. Payments due to
temporary differences have been charged to distributions in excess of net
investment income or realized gains.
5.) Organization Costs
Organization costs are being amortized on a straight line basis over a five year
period.
6.) Purchases And Sales Of Securities
During the twelve months ended December 31, 1996 purchases and sales of
investment securities other than U.S. Government obligations and short-term
investments aggregated $28,017,701 and $26,517,116 respectively.
7.) Financial Instruments Disclosure
There are no reportable financial instruments which have any off-balance sheet
risk as of December 31, 1996.
8.) Security Transactions
For Federal income tax purposes, the cost of investments owned at December 31,
1996 was the same as identified cost. At December 31, 1996, the composition of
unrealized appreciation (the excess of value over tax cost) and depreciation
(the excess of tax cost over value) was as follows:
Appreciation (Depreciation) Net Appreciation (Depreciation)
129,141 (23,277) 105,864
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Directors:
Maxus Laureate Fund
We have audited the accompanying statement of assets and liabilities of Maxus
Laureate Fund, including the schedule of portfolio investments, as of December
31, 1996, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the periods then
ended, and financial highlights for each of the three years in the periods then
ended and for the period from May 1, 1993 (commencement of operations) to
December 31, 1993. These financial statements and financial highlights are the
responsibility of the Fund'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 investments and cash held by
the custodian as of December 31, 1996, by correspondence with the custodian and
brokers. 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Maxus
Laureate Fund as of December 31, 1996, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
periods then ended, and the financial highlights for each of the three years in
the periods then ended and for the period from May 1, 1993 to December 31, 1993,
in conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
January 15, 1997
<PAGE>
THE MAXUS FUNDS
28601 Chagrin Boulevard, Cleveland, Ohio 44122
(216) 292-3434
INVESTMENT ADVISOR
Maxus Asset Management Inc
28601 Chagrin Boulevard
Cleveland, Ohio 44122
BOARD OF TRUSTEES
Richard A. Barone
N. Lee Dietrich
Sanford A. Fox, D.D.S.
Burton D. Morgan
Michael A. Rossi
Robert A. Schenkelberg, Jr.
F. Carl Walter
OFFICERS
Richard A. Barone, Chairman
James C. Onorato, Vice-President
Robert W. Curtin, Secretary
CUSTODIAN
Star Bank, N. A.
425 Walnut Street
P. O. Box 1118
Cincinnati, Ohio 45201-1118
TRANSFER AGENT
Maxus Information Systems Inc
28601 Chagrin Boulevard
Cleveland, Ohio 44122
DISTRIBUTOR
Maxus Securities Corp
28601 Chagrin Boulevard
Cleveland, Ohio 44122
LEGAL COUNSEL
Benesch, Friedlander, Coplan & Aronoff
2300 BP America Building
200 Public Square
Cleveland, Ohio 44114-2378
AUDITOR
McCurdy & Associates CPA's Inc
27955 Clemens Road
Westlake, Ohio 44145
