<PAGE>
AMERICAN SELECT
PORTFOLIO
* * *
SEMIANNUAL REPORT
1995
[Photo]
[Photo]
[Photo]
[Photo]
<PAGE>
TABLE OF CONTENTS
FUND PERFORMANCE.......................... 1
LETTER TO SHAREHOLDERS.................... 2
FINANCIAL STATEMENTS AND NOTES............ 9
INVESTMENTS IN SECURITIES................. 23
SHAREHOLDER UPDATE........................ 31
AMERICAN SELECT PORTFOLIO
American Select Portfolio is a diversified, closed-end management investment
company. The fund's primary objective is to provide a high level of current
income, and its secondary objective is to seek capital appreciation. To realize
its objectives, the fund emphasizes investments in mortgage-related assets that
directly or indirectly represent a participation in or are secured by and
payable from mortgage loans. It may also invest in asset-backed securities, U.S.
government securities, corporate debt securities, municipal obligations,
unregistered securities, mortgage-backed derivative securities and mortgage
servicing rights. The fund may also borrow by entering into reverse repurchase
agreements and may purchase securities through the sale-forward (dollar-roll)
program. Use of these investments and investment techniques may cause the
fund's net asset value (NAV) to fluctuate to a greater extent than would be
expected from interest rate movements alone. As with other mutual funds, there
can be no assurance the fund will achieve its objectives. The fund's credit
rating was downgraded from Af to BBBf by Standard & Poor's Corporation (S&P) on
December 29, 1994.* Fund shares trade on the New York Stock Exchange under the
symbol SLA.
*THE FUND IS RATED BBBf, WHICH MEANS INVESTMENTS IN THE FUND HAVE AN OVERALL
CREDIT QUALITY OF BBB. CREDIT QUALITIES ARE ASSESSED BY STANDARD & POOR'S
MUTUAL FUNDS RATING GROUP. S&P DOES NOT EVALUATE THE MARKET RISK OF AN
INVESTMENT WHEN ASSIGNING A CREDIT RATING. SEE STANDARD & POOR'S CORPORATE AND
MUNICIPAL RATING DEFINITIONS FOR AN EXPLANATION OF BBB.
THE FUND HAS ALSO BEEN GIVEN A MARKET RISK RATING BY S&P, WHICH WE CANNOT
PUBLISH DUE TO NASD REGULATIONS. RISK RATINGS EVALUATE VARIOUS INVESTMENT RISKS
THAT CAN AFFECT THE PERFORMANCE OF A BOND FUND AND INDICATE THE FUND'S OVERALL
STABILITY AND SENSITIVITY TO CHANGING MARKET CONDITIONS. THESE RATINGS ARE
AVAILABLE BY CALLING S&P AT 1-800-424-FUND.
<PAGE>
FUND PERFORMANCE
AVERAGE ANNUALIZED TOTAL RETURNS FOR THE PERIODS ENDED MAY 31, 1995
[Graph]
The average annual total returns for American Select Portfolio are based on the
change in its net asset value (NAV), assume all distributions were reinvested
and do not reflect sales charges. NAV-based performance is used to measure
investment management results.
Average annual total returns based on the change in market price for the
one-year and since inception periods ended May 31, 1995, were 5.97% and -7.82%,
respectively. These figures assume reinvestment of distributions and do not
reflect sales charges.
The Lehman Brothers Mutual Fund Government/Mortgage Index is comprised of all
U.S. government agency and Treasury securities and agency mortgage-backed
securities. Developed by Lehman Brothers for comparative use by the mutual fund
industry, this index is unmanaged and does not include any fees or expenses in
its total return figure.
The Lipper Closed-End U.S. Mortgage Funds Average represents the average total
return, with distributions reinvested, of similar closed-end mutual funds as
characterized by Lipper Analytical Services.
Past performance does not guarantee future results. The return and principal
value of your investment will fluctuate so that shares, when sold, may be worth
more or less than their original cost.
1
<PAGE>
AMERICAN SELECT PORTFOLIO
[Photo]
Mike Jansen, (above) IS PRIMARILY RESPONSIBLE FOR THE MANAGEMENT OF AMERICAN
SELECT PORTFOLIO. HE HAS 14 YEARS OF FINANCIAL EXPERIENCE.
John Wenker, (below) ASSISTS WITH THE MANAGEMENT OF AMERICAN SELECT PORTFOLIO.
HE HAS NINE YEARS OF FINANCIAL EXPERIENCE.
July 10, 1995
[Photo]
Dear Shareholders:
DECLINING INTEREST RATES HAVE FOSTERED AN IMPROVEMENT IN THE NET ASSET VALUE AND
MARKET PRICE OF AMERICAN SELECT PORTFOLIO (SLA) OVER THE PAST SIX MONTHS. SLA's
net asset value (NAV) total return for the six-month period ended May 31, 1995,
was 12.94%. The fund's market price return for that period was 14.07%.* (All
returns include reinvested distributions and do not include sales charges.)
Unfortunately, the fund's market price continues to trade at a discount to its
NAV. I believe this is due to the fund's erratic performance over the past year,
which was largely related to the fund's holdings of mortgage-backed derivative
securities. For performance comparison purposes, during the six-month period
ended May 31, 1995, the Lehman Brothers Mutual Fund Government/Mortgage Index
return was 11.01% and the Lipper Closed-End U.S. Mortgage Funds Average return
was 13.39%.
AS I MENTIONED IN LAST JANUARY'S ANNUAL REPORT, WE HAVE REDUCED THE INTEREST
RATE SENSITIVITY OF THE FUND. To do so, we suspended the sale-forward program,
reduced the amount of borrowing and allowed some of the fund's mortgage-backed
derivatives to pay off. We redirected these investments into mortgage loans and
Treasury securities, investments that should be less sensitive to changes in
interest rates.
* PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE RETURN AND PRINCIPAL
VALUE OF YOUR INVESTMENT WILL FLUCTUATE SO THAT SHARES, WHEN SOLD, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
2
<PAGE>
[Graph]
INVESTMENT CATEGORIES REFLECT PERCENTAGE OF TOTAL ASSETS
TO PROVIDE GREATER NAV AND INCOME STABILITY, WE RECENTLY SOLD MOST OF THE
PORTFOLIO'S MORTGAGE-BACKED DERIVATIVE SECURITIES. While there is no definition
for derivatives that is universally agreed upon, as of June 30 the fund no
longer owned any inverse floaters, principal-only strips, interest-only strips,
inverse interest-only securities or Z-bonds. (Please note that the portfolio
composition at left is as of May 31.) The fund still holds some subordinated
mortgage-backed securities which, although are referred to as derivatives in the
fund's prospectus, are not typically considered derivatives in the securities
market nor are they perceived by us to have the same volatility characteristics
as the derivative securities we sold. We currently do not intend to sell these
subordinated bonds and may make additional investments in these securities in
the future. While the derivative securities we sold offer potentially greater
income than more traditional mortgage securities, their prices and income can
also be much more volatile, as we experienced in 1994. The prices of SLA's
mortgage-backed derivative securities dropped significantly last year and
accounted for a disproportionate share of the fund's poor performance during
1994. This year, the prices of these derivative securities improved in response
to the recovery of the bond market. Yet the income from some of these
securities, such as the inverse floaters, declined. Consequently, we selectively
sold these derivatives at improved prices and invested the proceeds into
mortgage loans.
3
<PAGE>
[Graph]
LOWER PORTFOLIO EARNINGS HAVE CAUSED THE FUND TO RELY ON ITS DIVIDEND RESERVE TO
PAY ITS 9.3 CENTS PER SHARE MONTHLY DIVIDEND. On June 30, the fund's monthly
earnings were approximately 8.5 cents per share, and its accumulated
undistributed net investment income (dividend reserve) was approximately 22
cents per share. The dividend reserve may continue to decline in the coming
months depending on the direction of interest rates. In the future, we intend to
maintain a small dividend reserve in the fund. So should the dividend reserve
continue to decline, the fund's dividend committee will make gradual changes to
the dividend to bring it in line with the fund's earnings. Once the dividend
reserve reaches our targeted range, the dividend committee will set a dividend
level that it believes is sustainable, given the fund's income level at that
time. Of course, the dividend is not fixed and may fluctuate. Keep in mind that
any reduction in the dividend reserve reduces the fund's NAV penny
for penny.
ALTHOUGH THE DERIVATIVE SECURITIES WE SOLD WERE AT IMPROVED PRICES, WE REALIZED
LOSSES THAT MAY KEEP THE FUND FROM RETURNING TO ITS NAV LEVELS OF EARLY LAST
YEAR. We are currently managing significantly less per share from SLA's original
offering price of $15, due to the fund's realized losses since inception and its
initial offering and underwriting expenses. (See chart at left.) While the NAV
could one day return to the $14 to $15 range, it would most likely take many
years because of the fund's realized losses. Even though the NAV of the fund had
improved to $12.51 on May 31, 1995, from a low of $11.35 on February 2, 1995,
you should not expect future increases, should they occur, to be as significant.
4
<PAGE>
[Graph]
WE DO NOT PLAN TO INVEST IN INVERSE FLOATERS, PRINCIPAL-ONLY STRIPS,
INTEREST-ONLY STRIPS, INVERSE INTEREST-ONLY SECURITIES OR Z-BONDS IN THE FUTURE.
We intend to focus our efforts on mortgage loans, which have consistently
performed well for the fund. Also, we do not have any immediate plans to
reinstate the sale-forward (dollar-roll) program. In the event that we will
again invest in these types of mortgage-backed derivatives or reinstate the
sale-forward program, we will notify you in advance.
GOING FORWARD, THE FUND'S INVESTMENTS WILL BE MORE FOCUSED ON MORTGAGE LOANS AND
TREASURY SECURITIES. As of the end of June, 78% of the fund's total assets were
invested in multifamily (apartment) loans, 2% in single family (home) loans, 1%
in private mortgage-backed securities, and 17% in Treasuries. We intend to
maintain the fund's investments in mortgage loans and Treasuries at
approximately these levels. We will also continue to use borrowing in the fund
through reverse repurchase agreements, which as of June 30 accounted for 27% of
the fund's total assets, and invest the proceeds in Treasury securities. Keep in
mind that while borrowing can potentially increase the fund's income, it can
also increase the fund's NAV volatility, which can in turn be reflected in the
fund's market price.
OUR STRATEGY FOR INVESTING IN MORTGAGE LOANS REMAINS THE SAME. We purchase
apartment loans that meet our strict underwriting standards. For instance, these
loans are purchased at a level that we believe the property value exceeds the
mortgage amount by a wide margin. In addition, we require borrowers to have a
significant amount of their own money (equity) at risk. Any losses from these
loans will first go against the borrowers' investment (equity). By assuming and
managing the real estate
5
<PAGE>
risk of these loans, these investments offer potentially much greater yields
than those offered by securities backed by mortgages, which frequently are
guaranteed or backed by a letter of credit.
TO A MUCH SMALLER EXTENT, WE ALSO INVEST IN HOME LOANS, WHICH WE PURCHASE AT A
DISCOUNT. We can purchase home loans at a discount for a number of reasons.
Lenders find it difficult to sell loans that do not conform to industry
standards. For example, many buyers will not purchase loans that have missing
loan documents, unusual loan terms, delinquent payments or loans in bankruptcy
or default. Unlike many buyers, we agree to purchase loan pools that may include
such mortgages. Based on our credit analysis, we purchase these mortgages below
what we believe to be the market value of the home backing the mortgage. For
example, a loan with delinquent payments will typically be purchased at a deep
discount to our estimated market value because of its greater potential for
default. If we purchase the mortgage loans at an appropriate price, mortgage
defaults will not have a negative impact on the fund. Of course, depending on
the purchase price of the loan, we could recognize losses.
NOW THAT WE ARE FOCUSING EVEN MORE ON MORTGAGE LOANS, WE BELIEVE THE FUND'S
PRIMARY RISKS ARE CREDIT RISK AND THE OTHER RISKS ASSOCIATED WITH INVESTMENTS IN
REAL ESTATE. By selling most of the fund's mortgage-backed derivative
securities, the fund has less market risk (the risk associated with changes in
interest rates). But because most of the mortgages we purchase are not backed by
the U.S. government or one of its agencies, they are subject to credit risk or
the risk of failure to make payments. Apart from credit risk,
6
<PAGE>
these mortgages are also subject to property risk (physical condition and value
of the property), prepayment risk (the risk that mortgages will be prepaid and
the proceeds will have to be invested in lower-yielding loans), and the legal
risks associated with holding any mortgage. As part of our strategy to manage
the real estate risks of our apartment loans, we perform a detailed inspection
of each property; study the competing properties in the area; interview the
property manager; and obtain engineering and environmental reports from experts.
The apartment mortgages we purchase are backed by property located throughout
the country, which helps reduce the potential impact of a regional economic
recession or natural disaster.
THE HOME LOANS WE BUY ARE GENERALLY OLDER MORTGAGES SECURED BY SMALLER HOMES
LOCATED THROUGHOUT THE UNITED STATES. These loans usually have an established
history of timely payments and are less likely to be delinquent. As part of our
home loan risk analysis, we review the loan's legal documents, review the
borrower's mortgage payment history, assess the local market, and assess the
property value. We perform a drive-by assessment of the property or we have a
local real estate agent do the assessment for us when it is difficult or
impossible for us to perform the assessment ourselves. Our risk analysis has
helped the fund avoid recognizing any net losses on its investments in mortgage
loans.
7
<PAGE>
THE CREDITWORTHINESS OF THE FUND'S LOANS ARE ANALYZED BY STANDARD & POOR'S
CORPORATION (S&P), WHICH ISSUES A CREDIT RATING FOR THE FUND'S ENTIRE PORTFOLIO.
The final step of our risk analysis is a credit rating by S&P. Each quarter we
submit a report of the fund's loans to S&P for review. SLA has had a credit
rating of BBBf since December 29, 1994. Prior to that, its credit rating was
A-f.
Keep in mind that S&P does not evaluate the market risk of an investment when
assigning a credit rating.
NOW THAT THE FUND IS FOCUSING EVEN MORE ON MORTGAGE LOANS, I BELIEVE IT WILL BE
LESS VOLATILE AND EARN MORE CONSISTENT INCOME LEVELS THAN IN THE PAST. I hope
this will attract more buyers to the fund and help narrow the current gap
between the NAV and market price. Going forward, we intend to follow the
investment strategy we have implemented during the past few months. If you have
questions about your investment in American Select Portfolio, don't hesitate to
contact your investment professional.
Sincerely,
/s/ Mike Jansen
Mike Jansen
Portfolio Manager
8
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities at market value* (note 2)
(including a repurchase agreement of $7,390,000) ....... $ 224,617,282
Open interest rate swap transactions at market value (note
2) ..................................................... 36,041
Cash in bank on demand deposit ........................... 639,037
Receivable for investment securities sold ................ 6,919,977
Accrued interest receivable .............................. 1,781,308
----------------
Total assets ......................................... 233,993,645
----------------
LIABILITIES:
Open option contracts written at market value (premium
received of $92,109) (note 6) .......................... 562,422
Reverse repurchase agreements payable .................... 65,000,000
Payable for fund shares retired .......................... 35,792
Accrued investment management fee ........................ 70,287
Accrued administrative fee ............................... 28,114
Accrued interest ......................................... 207,294
Other accrued expenses ................................... 22,737
----------------
Total liabilities .................................... 65,926,646
----------------
Net assets applicable to outstanding capital stock ....... $ 168,066,999
----------------
----------------
REPRESENTED BY:
Capital stock - authorized 1 billion shares of $0.01 par
value; outstanding, 13,438,367 shares ................ $ 134,384
Additional paid-in capital ............................... 189,356,041
Undistributed net investment income ...................... 3,057,474
Accumulated net realized loss on investments ............. (24,225,752)
Unrealized depreciation of investments ................... (255,148)
----------------
Total - representing net assets applicable to
outstanding capital stock ........................ $ 168,066,999
----------------
----------------
Net asset value per share of outstanding capital stock ... $ 12.51
----------------
----------------
* Investments in securities at identified cost ........... $ 224,438,158
----------------
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1995
<TABLE>
<S> <C>
INCOME:
Interest (net of interest expense of $2,335,752) ....... $ 8,443,955
----------------
EXPENSES (NOTE 3):
Investment management fee ................................ 396,871
Administrative fee ....................................... 158,748
Custodian, accounting and transfer agent fees ............ 83,260
Reports to shareholders .................................. 19,323
Mortgage servicing fees .................................. 109,570
Directors' fees .......................................... 5,833
Audit and legal fees ..................................... 59,206
Other expenses ........................................... 26,998
----------------
Total expenses ....................................... 859,809
----------------
Net investment income ................................ 7,584,146
----------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized loss on investments (note 4) ................ (12,432,464)
Net realized gain on closed or expired option contracts
written (note 6) ....................................... 41,914
----------------
Net realized loss on investments ....................... (12,390,550)
Net change in unrealized appreciation or depreciation of
investments ............................................ 24,283,313
----------------
Net gain on investments ................................ 11,892,763
----------------
Net increase in net assets resulting from
operations ....................................... $ 19,476,909
----------------
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED MAY 31, 1995
<TABLE>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest income ........................................ $ 8,443,955
Expenses ................................................. (859,809)
----------------
Net investment income ................................ 7,584,146
----------------
Adjustments to reconcile net investment income to net cash
provided by operating activities:
Change in accrued interest receivable .................. (212,696)
Net amortization of bond discount and premium .......... (32,349)
Change in accrued fees and expenses .................... (5,094)
----------------
Total adjustments .................................... (250,139)
----------------
Net cash provided by operating activities ............ 7,334,007
----------------
CASH FLOWS FROM INVESTMENT ACTIVITIES:
Proceeds from sales of investments ....................... 44,640,458
Purchases of investments ................................. (38,077,364)
Net purchases of short-term securities ................... (5,757,000)
Net premiums received for option contracts written ....... 130,039
----------------
Net cash provided by investment activities ........... 936,133
----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions paid to shareholders ....................... (7,589,297)
Retirement of fund shares ................................ (1,208,127)
----------------
Net cash used by financing activities ................ (8,797,424)
----------------
Net decrease in cash ....................................... (527,284)
Cash at beginning of period ................................ 1,166,321
----------------
Cash at end of period .................................... $ 639,037
----------------
----------------
Supplemental disclosure of cash flow information:
Cash paid for interest on reverse
repurchase agreements ................................ $ 2,304,725
----------------
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended 5/31/95 Year Ended
(Unaudited) 11/30/94
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income .................................. $ 7,584,146 16,509,450
Net realized loss on investments ......................... (12,390,550) (10,842,749)
Net change in unrealized appreciation or depreciation of
investments ............................................ 24,283,313 (19,368,250)
---------------- ----------------
Net increase (decrease) in net assets resulting from
operations ........................................... 19,476,909 (13,701,549)
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ............................... (7,589,297) (15,304,416)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Payments for retirement of 108,400 and 59,900 shares,
respectively (note 7) .................................. (1,173,601) (637,852)
---------------- ----------------
Total increase (decrease) in net assets .............. 10,714,011 (29,643,817)
Net assets at beginning of period .......................... 157,352,988 186,996,805
---------------- ----------------
Net assets at end of period .............................. $ 168,066,999 157,352,988
---------------- ----------------
---------------- ----------------
Undistributed net investment income ...................... $ 3,057,474 3,062,625
---------------- ----------------
---------------- ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
American Select Portfolio Inc. (the fund) is registered under
the Investment Company Act of 1940 (as amended) as a
diversified, closed-end management investment company. The fund
commenced operations on September 21, 1993, upon completion of
its initial public offering of common stock. Shares of the fund
are listed on the New York Stock Exchange under the symbol SLA.
(2) SIGNIFICANT
ACCOUNTING
POLICIES
INVESTMENTS IN SECURITIES
The fund's mortgage-related investments such as whole loans,
participation mortgages and mortgage servicing rights are
initially valued at cost and their values are subsequently
monitored and adjusted pursuant to a pricing model designed to
reflect the present value of the projected stream of cash flows
on such investments. The pricing model takes into account a
number of relevant factors including the projected rate of
prepayments, the projected rate and severity of defaults, the
delinquency profile, the age of the underlying mortgages, the
historical payment record thereon, the expected yield at
purchase, changes in prevailing interest rates and changes in
the real or perceived liquidity of whole loans, participation
mortgages or mortgage servicing rights as the case may be.
Certain elements of the pricing model involve subjective
judgment. Additionally, certain other factors will be considered
in the determination of the valuation of investments in
multifamily loans, including but not limited to, results of
annual inspections of the multifamily property by the adviser or
a servicing agent retained by the adviser, reviews of annual
unaudited financial statements of the multifamily property,
monitoring of local and other economic conditions and their
impact on local real estate values and analyses of rental
vacancy rates at the multifamily property. Subjective
adjustments to the valuation of such investments in multifamily
loans may be made based upon the adviser's analysis of such
information. The actual values realized upon the sale of whole
loans, participation mortgages and mortgage servicing rights can
only be determined in negotiations between the fund and third
parties.
The values of other fixed income securities are determined using
pricing services or prices quoted by independent brokers.
Exchange-listed options are valued at the last sales price and
open financial futures contracts are valued at the last
settlement price. When
13
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
market quotations for other fixed income securities are not
readily available, such securities are valued at fair value
according to methods selected in good faith by the board of
directors.
Securities transactions are accounted for on the date the
securities are purchased or sold. Realized gains and losses are
calculated on the identified-cost basis. Interest income,
including amortization of bond discount and premium computed on
a level-yield basis, is accrued daily. Costs associated with
acquiring whole loans, participation mortgages and mortgage
servicing rights are capitalized and included in the cost basis
of the loans purchased.
OPTION TRANSACTIONS
For hedging purposes, the fund may buy and sell put and call
options, write covered call options on portfolio securities and
may write cash-secured puts. The risk in writing a call option
is that the fund gives up the opportunity for profit if the
market price of the security increases and the option is
exercised. The risk in writing a put option is that the fund may
incur a loss if the market price of the security decreases and
the option is exercised. The risk in buying an option is that
the fund pays a premium whether or not the option is exercised.
The fund also has the additional risk of not being able to enter
into a closing transaction if a liquid secondary market does not
exist. The fund also may write over-the-counter options where
the completion of the obligation is dependent upon the credit
standing of the other party.
Option contracts are valued daily and unrealized appreciation or
depreciation is recorded. The fund will realize a gain or loss
upon expiration or closing of the option transaction. When an
option is exercised, the proceeds on the sale of a written call
option, the purchase cost of a written put option or the
security cost of a purchased put or call option is adjusted by
the amount of premium received or paid.
FUTURES TRANSACTIONS
In order to gain exposure to or protect against changes in the
market, the fund may buy and sell financial futures contracts
and related options. Risks of entering into futures contracts
and related
14
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
options include the possibility there may be an illiquid market
and that a change in the value of the contract or option may not
correlate with changes in the value of the underlying
securities.
Upon entering into a futures contract, the fund is required to
deposit either cash or securities in an amount (initial margin)
equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by the fund
each day. The variation margin payments are equal to the daily
changes in the contract value and are recorded as unrealized
gains and losses. The fund recognizes a realized gain or loss
when the contract is closed or expires.
INTEREST RATE TRANSACTIONS
To preserve a return or spread on a particular investment or
portion of its portfolio, to create synthetic adjustable-rate
mortgage securities or for other nonspeculative purposes, the
funds may enter into various hedging transactions, such as
interest rate swaps and the purchase or sale of interest rate
caps and floors. Interest rate swaps involve the exchange of
commitments to pay or receive interest, e.g., an exchange of
floating-rate payments for fixed rate payments. The purchase of
an interest rate cap entitles the purchaser, to the extent that
a specified index exceeds a predetermined interest rate, to
receive payments of interest on a contractually based notional
principal amount from the party selling the interest rate cap.
The purchase of an interest rate floor entitles the purchaser,
to the extent that a specified index falls below a predetermined
interest rate, to receive payments of interest on a
contractually based notional principal amount from the party
selling the interest rate floor.
If forecasts of interest rates and other market factors are
incorrect, investment performance will diminish compared to what
performance would have been if these investment techniques were
not used. Even if the forecasts are correct, there is risk that
the positions may correlate imperfectly with the asset or
liability being hedged. Other risks of entering into these
transactions are that a liquid secondary market may not always
exist, or that another party to a transaction may not perform.
15
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
For interest rate swaps, caps and floors, the fund records as an
increase or decrease to interest income, the current net amount
due to or owed by the fund. Interest rate swap, cap and floor
valuations are based on prices quoted by independent brokers.
These valuations represent the present value of all future cash
settlement amounts based on implied forward interest rates.
As of May 31, 1995, SLA had entered into the following interest
rate swap agreement. The terms provide for the interest rate
differential to be settled on a monthly basis.
<TABLE>
<CAPTION>
Swap Rate Paid by Rate Received Floating Net
Counter- Notional the Fund at by the Fund Rate Termination Unrealized
Party Principal 5/31/95 at 5/31/95 Index Date Gain
- --------- ------------ -------------- ------------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Morgan 1-Month
Stanley $ 15,000,000 6.08%(a) 6.06%(b) LIBOR 3/15/99 $ 36,041
-----------
-----------
</TABLE>
(a) Fixed Rate
(b) Floating Rate
WHOLE LOANS AND PARTICIPATION MORTGAGES
Whole loans and participation mortgages may bear a greater risk
of loss arising from a default on the part of the borrower of
the underlying loans than do traditional mortgage-backed
securities. This is because whole loans and participation
mortgages, unlike most mortgage-backed securities, generally are
not backed by any government guarantee or private credit
enhancement. Such risk may be greater during a period of
declining or stagnant real estate values. In addition,
individual loans underlying whole loans and participation
mortgages may be larger than those underlying mortgage-backed
securities. At May 31, 1995, no loans were considered by the
fund to be delinquent as to the timely monthly payment of
principal and interest. The fund does not record past due
interest as income until received.
There may be certain costs and delays in the event of a
foreclosure. Also, there is no assurance that the subsequent
sale of the property will produce an amount equal to the sum of
the unpaid principal balance of the loan upon default as well as
the accrued unpaid interest and all foreclosure expenses. In
this case, the fund may
16
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
suffer a loss. Real estate acquired through foreclosure, if any,
is recorded at estimated fair value. At May 31, 1995, the fund
owned no real estate. Additionally, with respect to
participation mortgages, the fund generally will not be able to
unilaterally enforce its rights in the event of a default but,
rather, will depend on the cooperation of the other
participation holders.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have been purchased by
the fund on a forward-commitment or when-issued basis can take
place a month or more after the transaction date. During this
period, such securities do not earn interest, are subject to
market fluctuation and may increase or decrease in value prior
to their delivery. The fund maintains, in a segregated account
with its custodian, assets with a market value equal to the
amount of its purchase commitments. The purchase of securities
on a when-issued or forward-commitment basis may increase the
volatility of the fund's NAV to the extent the fund makes such
purchases while remaining substantially fully invested. As of
May 31, 1995, the fund had no outstanding when-issued or forward
commitments.
In connection with its ability to purchase securities on a
when-issued or forward-commitment basis, the fund may enter into
mortgage "dollar rolls" in which the fund sells securities for
delivery in the current month and simultaneously contracts with
the same counterparty to repurchase similar (same type, coupon
and maturity) but not identical securities on a specified future
date. As an inducement to "roll over" its purchase commitments,
the fund receives negotiated fees. For the six months ended May
31, 1995, the fund earned no such fees.
FEDERAL TAXES
The fund intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and
not be subject to federal income tax. Therefore, no income tax
provision is required.
Net investment income and net realized gains (losses) may differ
for financial statement and tax purposes primarily because of
losses deferred due to "wash sale" and "straddle" transactions,
the timing
17
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
of recognition of income on certain interest-only securities and
the non-deductibility of excise tax payments made. The character
of distributions made during the year from net investment income
or net realized gains may therefore differ from their ultimate
characterization for federal income tax purposes. In addition,
due to the timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the
income or realized gains (losses) were recorded by the fund.
DISTRIBUTIONS
The fund pays monthly distributions from net investment income,
and realized capital gains, if any, will be distributed on an
annual basis. These distributions are recorded as of the close
of business on the ex-dividend date. Such distributions are
payable in cash or, pursuant to the fund's dividend reinvestment
plan, reinvested in additional shares of the fund's capital
stock. Under the plan, fund shares will be purchased in the open
market. However, if the market price plus commission exceeds the
net asset value by 5% or more, the fund will issue new shares at
a discount of up to 5% from the current market price.
REPURCHASE AGREEMENTS
For repurchase agreements entered into with certain
broker-dealers, the fund, along with other affiliated registered
investment companies, may transfer uninvested cash balances into
a joint trading account, the daily aggregate of which is
invested in repurchase agreements secured by U.S. government and
agency obligations. Securities pledged as collateral for all
individual and joint repurchase agreements are held by the
fund's custodian bank until maturity of the repurchase
agreement. Provisions for all agreements ensure that the daily
market value of the collateral is in excess of the repurchase
amount in the event of default.
(3) EXPENSES
The fund has entered into the following agreements with Piper
Capital Management Incorporated (the adviser and the
administrator):
The investment advisory agreement provides the adviser with a
monthly investment management fee based on the fund's average
18
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
weekly net assets computed at the per annum rate of 0.50%. For
its fee, the advisor will provide investment advice and, in
general, will conduct the management and investment activity of
the fund.
The administration agreement provides the administrator with a
monthly fee in an amount equal to an annualized rate of 0.20% of
the fund's average weekly net assets. For its fee, the
administrator will provide regulatory, reporting and
record-keeping services for the fund.
When acquiring whole loans and participation mortgages, the fund
enters into mortgage servicing agreements with mortgage
servicers. For a fee, mortgage servicers maintain loan records
such as insurance and taxes and the proper allocation of
payments between principal and interest.
In addition to the advisory, administrative and mortgage
servicing fees, the fund is responsible for paying most other
operating expenses, including outside directors' fees and
expenses, custodian fees, registration fees, printing and
shareholder reports, transfer agent fees and expenses, legal,
auditing and accounting services, organizational costs,
insurance, interest, fees to outside parties retained to assist
in conducting due diligence, taxes, and other miscellaneous
expenses.
(4) SECURITIES
TRANSACTIONS
Cost of purchases and proceeds from sales of securities (other
than short-term securities) aggregated $38,109,713 and
$51,560,435, respectively, for the six months ended May 31,
1995.
(5) CAPITAL LOSS
CARRYOVER
For federal income tax purposes, the fund had a capital loss
carryover at November 30, 1994 of $11,835,202, which, if not
offset by subsequent capital gains, will expire in the years
2001 and 2002. It is unlikely the board of directors will
authorize a distribution of any net realized capital gains until
the available capital loss carryover has been offset or expires.
19
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(6) OPTION
CONTRACTS
WRITTEN
The number of contracts and premium amounts associated with call
option contracts written for the six months ended May 31, 1995,
were as follows:
<TABLE>
<CAPTION>
Number of Premium
Contracts Amount
------------- ---------
<S> <C> <C>
Balance at 11/30/94.......................... 10 $ 3,984
Opened..................................... 375 160,000
Closed or expired.......................... (165) (65,781)
Exercised.................................. (20) (6,094)
----- ---------
Balance at 5/31/95........................... 200 $ 92,109
----- ---------
----- ---------
</TABLE>
(7) RETIREMENT OF
FUND SHARES
The fund's board of directors has approved a plan to repurchase
shares of the fund in the open market and retire those shares.
Repurchases may only be made when the previous day's closing
market price was at a discount from net asset value. Daily
repurchases are limited to 25% of the previous four weeks
average daily trading volume on the New York Stock Exchange.
Under the current plan, cumulative repurchases in the fund
cannot exceed 3% of the total shares originally issued. The
board of directors will review the plan every six months and may
change the amount which may be repurchased. The plan was last
reviewed and reapproved by the board of directors on May 19,
1995. Pursuant to the plan, the fund has cumulatively
repurchased and retired 168,300 shares as of May 31, 1995, which
represents 1.24% of the shares originally issued.
20
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(8) FINANCIAL
HIGHLIGHTS
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each period
are as follows:
<TABLE>
<CAPTION>
Period
from
Six Months Year 9/21/93*
Ended 5/31/95 Ended to
(Unaudited) 11/30/94 11/30/93
------------- -------- ---------
<S> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ........... $ 11.62 13.74 14.07
------ -------- ---------
Operations:
Net investment income .......................... 0.56 1.22 0.22
Net realized and unrealized gain (loss) on
investments .................................. 0.89 (2.21) (0.46)
------ -------- ---------
Total from operations ........................ 1.45 (0.99) (0.24)
------ -------- ---------
Distributions to shareholders from:
Net investment income ............................ (0.56) (1.13) (0.09)
------ -------- ---------
Net asset value, end of period ............... $ 12.51 11.62 13.74
------ -------- ---------
------ -------- ---------
Per-share market value, end of period .......... $ 11.25 10.38 14.38
------ -------- ---------
------ -------- ---------
SELECTED INFORMATION
Total return, net asset value** .................. 12.85% (7.48%) (1.75%)
Total return, market value*** .................... 14.07% (20.78%) (3.54%)
Net assets at end of year (in millions) ........ $ 168 157 187
Ratio of expenses to average weekly net
assets+++ ...................................... 1.08+ 1.12% 0.79%+
Ratio of net investment income to average weekly
net assets ..................................... 9.56+ 9.61% 8.23%+
Portfolio turnover rate (excluding short-term
securities) .................................... 18% 110% 9%
Amount of borrowings outstanding at end of period
(in millions) TRIANGLE ...................... $ 65 65 --
Per-share amount of borrowings outstanding at end
of period .................................... $ 4.83 4.80 --
Per-share asset coverage of borrowings outstanding
at end of period++ ........................... $ 17.34 16.42 --
</TABLE>
* COMMENCEMENT OF OPERATIONS.
** BASED ON THE CHANGE IN NET ASSET VALUE OF A SHARE DURING THE PERIOD. ASSUMES
REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE.
*** BASED ON THE CHANGE IN MARKET PRICE OF A SHARE DURING THE PERIOD. ASSUMES
REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE FUND'S
DIVIDEND REINVESTMENT PLAN.
+ ADJUSTED TO AN ANNUAL BASIS.
++ REPRESENTS THE FUND'S NET ASSETS (EXCLUDING BORROWINGS) DIVIDED BY SHARES
OUTSTANDING.
+++ INCLUDES 0.05% FROM FEDERAL EXCISE TAXES IN FISCAL 1994.
TRIANGLE SECURITIES PURCHASED ON A WHEN-ISSUED BASIS FOR WHICH LIQUID, HIGH
GRADE DEBT OBLIGATIONS ARE MAINTAINED IN A SEGREGATED ACCOUNT ARE NOT
CONSIDERED BORROWINGS. SEE FOOTNOTE 2 IN THE NOTES TO FINANCIAL
STATEMENTS.
21
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(9) QUARTERLY DATA
DOLLAR AMOUNTS
<TABLE>
<CAPTION>
Net Realized Net Increase in Distributions
and Unrealized Net Assets from Net
Total Investment Net Investment Gains on Resulting from Investment
Income Income Investments Operations Income
---------------- --------------- --------------- --------------- ------------------
<S> <C> <C> <C> <C> <C>
2/28/95 $ 4,240,439 3,836,581 3,106,333 6,942,914 (3,802,341)
5/31/95 4,203,516 3,747,565 8,786,430 12,533,995 (3,786,956)
---------------- --------------- --------------- --------------- ------------------
$ 8,443,955 7,584,146 11,892,763 19,476,909 (7,589,297)
---------------- --------------- --------------- --------------- ------------------
---------------- --------------- --------------- --------------- ------------------
</TABLE>
PER-SHARE AMOUNTS
<TABLE>
<CAPTION>
Net Realized and Net Increase in Net Distributions
Net Investment Unrealized Gains Assets Resulting from Net Investment Quarter End
Income on Investments from Operations Income Net Asset Value
------------------- ----------------- ------------------- --------------------- ---------------
<S> <C> <C> <C> <C> <C>
2/28/95 $ 0.28 0.23 0.51 (0.28) 11.85
5/31/95 0.28 0.66 0.94 (0.28) 12.51
----- ----- ----- -----
$ 0.56 0.89 1.45 (0.56)
----- ----- ----- -----
----- ----- ----- -----
</TABLE>
22
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN SELECT PORTFOLIO
MAY 31, 1995
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- ---------- -----------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
U.S. GOVERNMENT SECURITIES (12.3%):
U.S. Treasury Note, 6.88%, 3/31/00
(cost: $20,094,992) ............................... $ 20,000,000(b)(d) 20,662,600
-----------
MORTGAGE-BACKED SECURITIES (6.0%):
COLLATERALIZED MORTGAGE OBLIGATIONS (C) (6.0%):
PRIVATE FIXED RATE (1.6%):
8.60%, Chemical Mortgage Securities, Series 1991-1,
Subordinated Class B, 9/25/21 ....................... 478,426(g) 455,406
9.25%, FBS Mortgage Corporation, Series 1991-B,
Subordinated Class D, 11/1/31 ....................... 966,889(g) 930,026
9.35%, GMBS Inc., Series 1990-4, Subordinated Class S,
10/25/20 ............................................ 496,952(g) 480,335
9.25%, Salomon Brothers Mortgage Securities VII,
Series 1990-1, Class G-1, 8/25/20 ................... 480,160(g) 460,721
9.25%, Salomon Brothers Mortgage Securities VII,
Series 1990-1, Class G-2, 8/25/20 ................... 463,320(g) 444,708
-----------
2,771,196
-----------
U.S. AGENCY INVERSE FLOATER (4.4%):
7.90%, FHLMC, Series 1552, Class LA, LIBOR,
8/15/23 ............................................. 1,798,410 1,402,760
7.87%, FHLMC, Series 1609, Class LB, COFI,
11/15/23 ............................................ 1,884,513 1,261,399
6.80%, FHLMC, Series 1659, Class SE, COFI, 1/15/09 ... 1,844,004 1,548,964
7.35%, FNMA, Series 1994-36, Class SA, COFI,
3/25/24 ............................................. 1,946,994 1,499,185
7.19%, FNMA, Series 1994-37, Class SC, COFI,
3/25/24 ............................................. 2,393,276 1,610,975
-----------
7,323,283
-----------
Total Mortgage-Backed Securities
(cost: $12,478,847) ................................ 10,094,479
-----------
WHOLE LOANS (E,F,G) (110.9%):
MULTIFAMILY LOANS (107.6%):
Aldrich Apartments, 9.75%, 5/31/01 ................... 793,459 808,773
Allumbaugh Square Apartments, 9.81%, 4/1/99 .......... 1,769,953(b) 1,789,953
Arbor Glen Apartments, 9.63%, 5/1/99 ................. 1,288,031 1,315,724
Ashewood Apartments, 10.25%, 4/1/99 .................. 1,309,582(b) 1,341,143
Autumn Chase Apartments, 9.93%, 5/1/09 ............... 3,072,825 3,144,422
Braesforest Apartments, 9.00%, 4/1/01 ................ 993,764 996,746
Brandywine II Apartments, 10.31%, 7/1/01 ............. 3,585,957 3,711,466
Brentwood Highlands Apartments, 8.63%, 4/1/01 ........ 4,463,932(b) 4,416,615
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
23
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN SELECT PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- ---------- -----------
<S> <C> <C>
Briarcliff Apartments, 9.25%, 5/1/01 ............... $ 668,397 680,362
Bridge Court Apartments, 10.13%, 5/1/09 .............. 1,840,855 1,840,855
Bryant Square Apartments, 8.75%, 4/1/01 .............. 1,398,972(b) 1,389,319
Candlelite Apartments, 8.75%, 3/1/01 ................. 1,545,724(b) 1,542,787
Cape Cod Apartments, 8.75%, 1/1/01 ................... 1,535,919 1,533,307
Casa Del Vista Apartments, 8.75%, 1/1/01 ............. 2,130,468(b) 2,116,194
Centre Court Apartments, 8.75%, 1/1/01 ............... 1,182,382(b) 1,174,579
Chapel Hill Apartments, 9.88%, 8/1/01 ................ 920,945 941,297
Chouteau Trace/Bay Apartments, 8.75%, 4/1/01 ......... 2,499,213(b) 2,481,969
Collegeview Apartments, 10.00%, 8/1/01 ............... 1,191,549 1,221,457
Collegeview Towers, 10.00%, 8/1/01 ................... 4,580,346 4,695,313
Concordia Place Apartments, 9.38%, 5/1/01 ............ 990,416 1,008,046
Continental Gardens Apartments, 8.90%, 3/1/04 ........ 1,984,836(b) 1,985,829
Country Club Apartments, 8.75%, 1/1/01 ............... 2,080,922 2,077,384
Country Village Apartments, 8.75%, 4/1/01 ............ 1,344,863(b) 1,335,584
El Conquistador Apartments, 8.75%, 4/1/01 ............ 2,606,132(b) 2,601,180
El Portal Apartments, 9.94%, 7/1/01 .................. 2,331,368 2,386,388
Emerald Shores Apartments, 8.75%, 2/1/01 ............. 3,176,860(b) 3,106,334
Evergreen Square Apartments, 8.75%, 12/1/00 .......... 2,203,359 2,107,733
Evergreen Village Apartments, 8.75%, 11/1/00 ......... 4,035,555 4,029,502
Fairway Hills Apartments, 8.50%, 12/1/98 ............. 1,659,001 1,646,392
Foothills West Apartments, 8.75%, 2/1/01 ............. 2,173,479(b) 2,169,350
Garcia Apartments, 9.88%, 6/1/01 ..................... 1,393,183 1,430,939
Glen Hollow Apartments, 9.00%, 4/1/01 ................ 5,586,868(b) 5,603,629
Goose Creek Apartments, 9.63%, 5/1/01 ................ 3,211,783 3,264,777
Green Acres Apartments, 8.75%, 1/1/01 ................ 1,379,446(b) 1,377,239
Greenwood Apartments, 9.25%, 5/1/01 .................. 618,886 626,870
Heritage Apartments, 9.25%, 4/1/01 ................... 2,051,567 2,057,721
Heritage Green Apartments, 8.75%, 3/1/01 ............. 1,421,707(b) 1,419,006
Hickory Ridge Apartments, 10.06%, 8/1/99 ............. 1,235,203 1,268,183
Hidden Colony Apartments, 9.00%, 4/1/01 .............. 3,317,181(b) 3,327,133
High Vista Apartments, 9.00%, 4/1/01 ................. 4,245,793(b) 4,279,760
Jackson Manor Townhomes, 9.38%, 5/1/01 ............... 671,100 683,247
Kingston Square Apartments, 8.75%, 4/1/01 ............ 4,167,175(b) 4,159,257
La Arboleda Apartments, 8.75%, 1/1/01 ................ 4,135,089(b) 4,128,060
Lakeville Apartments, 8.50%, 2/1/99 .................. 2,230,013(b) 2,036,894
Lasalle Crossing Apartments, 8.75%, 1/1/01 ........... 2,893,472(b) 2,888,554
Meadow Glen Apartments, 9.00%, 1/1/01 ................ 1,417,648 1,428,847
Mount Vernon Apartments, 8.75%, 1/1/01 ............... 951,207 945,119
Old Orchard Apartments, 8.75%, 12/1/00 ............... 9,760,336 9,723,458
Parc Du Lac Apartments, 8.50%, 2/1/99 ................ 5,352,032(b) 5,310,286
Park Apartments, 8.75%, 2/1/01 ....................... 1,338,595(b) 1,336,186
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
24
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN SELECT PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- ---------- -----------
<S> <C> <C>
Philippe Landing Apartments, 10.06%, 5/1/99 ........ $ 3,277,219 3,312,285
Quail Bluff Apartments, 9.75%, 4/1/99 ................ 2,876,878(b) 2,906,510
Revere Apartments, 8.75%, 4/1/01 ..................... 814,106(b) 812,559
Rush Creek Apartments, 8.19%, 4/1/99 ................. 2,565,707 2,574,687
Shadowood Apartments, 8.50%, 3/1/99 .................. 5,256,440(b) 5,214,388
Sherwood Lake Apartments, 10.13%, 8/1/01 ............. 2,433,097 2,501,954
Sierra Vista Apartments, 9.50%, 2/1/01 ............... 1,377,438(b) 1,408,155
Skyline Place Apartments, 8.75%, 4/1/01 .............. 4,368,374(b) 4,337,795
Somerset Place Apartments, 9.00%, 4/1/04 ............. 2,345,276 2,345,980
Stonegate Apartments, 10.38%, 8/1/01 ................. 844,373 873,927
Sunset Rill Apartments, 10.38%, 5/1/99 ............... 3,084,415 3,175,406
Sunview Apartments, 9.88%, 2/1/01 .................... 1,840,992 1,890,883
Terrace Gardens Apartments, 9.80%, 5/1/04 ............ 2,486,774 2,573,811
The Oaks of Lake Bluff Apartments, 8.75%, 4/1/01 ..... 2,779,874(b) 2,760,693
Timber Forest Apartments, 8.75%, 2/1/01 .............. 1,189,867(b) 1,181,776
Tralee Terrace Apartments, 10.13%, 5/1/09 ............ 2,089,620 2,089,620
Trinity Place Apartments, 8.75%, 4/1/01 .............. 610,580 609,419
Waterford Apartments, 9.80%, 1/1/19 .................. 4,618,300(b) 4,779,017
Westmont Apartments, 9.75%, 7/1/01 ................... 2,189,009 2,231,257
White Oaks Apartments, 8.75%, 1/1/01 ................. 837,521(b) 836,181
Willow Brooke Apartments, 8.75%, 4/1/01 .............. 4,839,960(b) 4,806,564
Willow Creek Apartments, 9.00%, 1/1/01 ............... 3,782,047(b) 3,793,015
Willow Creek Apartments, 8.75%, 4/1/01 ............... 1,292,109(b) 1,289,654
Willows Apartments, 10.00%, 6/1/01 ................... 3,580,864 3,670,744
-----------
180,867,448
-----------
SINGLE FAMILY LOANS (3.3%):
President Homes 94-1A, Sales Inventory, 10.00%,
2/28/24 ............................................. 490,098 456,526
President Homes 94-1A, Warehouse Inventory, 10.00%,
2/28/24 ............................................. 313,972 282,574
President Homes 94-1B, Sales Inventory, 10.00%,
3/29/24 ............................................. 1,204,570 1,122,057
President Homes 94-1B, Warehouse Inventory, 10.00%,
3/29/24 700,941 630,847
President Homes 94-1C, Sales Inventory, 10.00%,
4/30/24 ............................................. 201,072 187,298
President Homes 94-1C, Warehouse Inventory, 10.00%,
4/30/24 ............................................. 508,667 457,800
President Homes 94-1D, Sales Inventory, 10.00%,
5/7/24 .............................................. 619,505 577,069
President Homes 94-1D, Warehouse Inventory, 10.00%,
5/7/24 . 1,137,686 1,023,918
President Homes 94-1E, Sales Inventory, 10.00%,
6/2/24 .............................................. 98,811 92,042
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
25
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
AMERICAN SELECT PORTFOLIO
(CONTINUED)
<TABLE>
<CAPTION>
Principal Market
Name of Issuer Amount Value (a)
- --------------------------------------------------------- ---------- -----------
<S> <C> <C>
President Homes 94-1E, Warehouse Inventory,
10.00%, 6/2/24 .................................... $ 858,472 772,624
-----------
5,602,755
-----------
Total Whole Loans
(cost: $184,474,319) ............................... 186,470,203
-----------
SHORT-TERM SECURITIES (4.4%):
Repurchase agreement with Morgan Stanley in a joint
trading account, collateralized by U.S. government
agency securities, acquired on 5/31/95, accrued
interest at repurchase date of $1,184, 5.85%, 6/1/95
(cost: $7,390,000) .................................. 7,390,000 7,390,000
-----------
Total Investments in Securities
(cost: $224,438,158) (h) ......................... $ 224,617,282
-----------
-----------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(A) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS.
(B) ON MAY 31, 1995, SECURITIES VALUED AT $118,105,747 WERE PLEDGED AS
COLLATERAL FOR THE FOLLOWING OUTSTANDING REVERSE REPURCHASE AGREEMENTS:
<TABLE>
<CAPTION>
NAME
OF BROKER AND
ACQUISITION ACCRUED DESCRIPTION
AMOUNT DATE RATE* DUE INTEREST OF COLLATERAL
----------- ----------- ----- -------- -------- -------------
<S> <C> <C> <C> <C> <C>
$28,500,000 3/15/95 6.98% 3/15/96 $ 93,872 (1)
16,000,000 4/03/95 6.98% 3/15/96 52,700 (1)
1,500,000 4/15/95 6.98% 3/15/96 4,941 (1)
4,000,000 4/24/95 6.13% 3/15/96 11,569 (2)
6,000,000 4/10/95 6.13% 3/15/96 17,354 (3)
5,000,000 5/22/95 6.13% 3/15/96 15,289 (4)
4,000,000 5/09/95 6.13% 3/15/96 11,569 (5)
----------- --------
$65,000,000 $207,294
----------- --------
----------- --------
</TABLE>
*INTEREST RATE IS AS OF MAY 31, 1995. RATES ARE BASED ON THE LONDON INTERBANK
OFFERED RATE (LIBOR) AND RESET MONTHLY.
26
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
<TABLE>
<S> <C>
NAME OF BROKER AND DESCRIPTION OF COLLATERAL:
(1) MORGAN STANLEY; ALLUMBAUGH SQUARE APARTMENTS, 9.81%, 4/1/99,
$1,769,953 PAR
ASHEWOOD APARTMENTS, 10.25%, 4/1/99, $1,309,582 PAR
BRENTWOOD HIGHLANDS APARTMENTS, 8.63%, 4/1/01, $4,463,932 PAR
BRYANT SQUARE APARTMENTS, 8.75%, 4/1/01, $1,398,972 PAR
CANDLELITE APARTMENTS, 8.75%, 3/1/01, $1,545,724 PAR
CASA DEL VISTA APARTMENTS, 8.75%, 1/1/01, $2,130,468 PAR
CENTRE COURT APARTMENTS, 8.75%, 1/1/01, $1,182,382 PAR
CHOUTEAU TRACE/BAY APARTMENTS, 8.75%, 4/1/01, $2,499,213 PAR
CONTINENTAL GARDENS APARTMENTS, 8.90%, 3/1/04, $1,984,836 PAR
COUNTRY VILLAGE APARTMENTS, 8.75%, 4/1/01, $1,344,863 PAR
EL CONQUISTADOR APARTMENTS, 8.75%, 4/1/01, $2,606,132 PAR
EMERALD SHORES APARTMENTS, 8.75%, 2/1/01, $3,176,860 PAR
FOOTHILLS WEST APARTMENTS, 8.75%, 2/1/01, $2,173,479 PAR
GLEN HOLLOW APARTMENTS, 9.00%, 4/1/01, $5,586,868 PAR
GREEN ACRES APARTMENTS, 8.75%, 1/1/01, $1,379,446 PAR
HERITAGE GREEN APARTMENTS, 8.75%, 3/1/01, $1,421,707 PAR
HIDDEN COLONY APARTMENTS, 9.00%, 4/1/01, $3,317,181 PAR
HIGH VISTA APARTMENTS, 9.00%, 4/1/01, $4,245,793 PAR
KINGSTON SQUARE APARTMENTS, 8.75%, 4/1/01, $4,167,175 PAR
LA ARBOLEDA APARTMENTS, 8.75%, 1/1/01, $4,135,089 PAR
LAKEVILLE APARTMENTS, 8.50%, 2/1/99, $2,230,013 PAR
LASALLE CROSSING APARTMENTS, 8.75%, 1/1/01, $2,893,472 PAR
PARC DU LAC APARTMENTS, 8.50%, 2/1/99, $5,352,032 PAR
PARK APARTMENTS, 8.75%, 2/1/01, $1,338,595 PAR
QUAIL BLUFF APARTMENTS, 9.75%, 4/1/99, $2,876,878 PAR
REVERE APARTMENTS, 8.75%, 4/1/01, $814,106 PAR
SHADOWOOD APARTMENTS, 8.50%, 3/1/99, $5,256,440 PAR
SIERRA VISTA APARTMENTS, 9.50%, 2/1/01, $1,377,438 PAR
SKYLINE PLACE APARTMENTS, 8.75%, 4/1/01, $4,368,374 PAR
THE OAKS OF LAKE BLUFF APARTMENTS, 8.75%, 4/1/01, $2,779,874 PAR
TIMBER FOREST APARTMENTS, 8.75%, 2/1/01, $1,189,867 PAR
WATERFORD APARTMENTS, 9.80%, 1/1/19, $4,618,300 PAR
WHITE OAKS APARTMENTS, 8.75%, 1/1/01, $837,521 PAR
WILLOW BROOKE APARTMENTS, 8.75%, 4/1/01, $4,839,960 PAR
WILLOW CREEK APARTMENTS, 9.00%, 1/1/01, $3,782,047 PAR
WILLOW CREEK APARTMENTS, 8.75%, 4/1/01, $1,292,109 PAR
(2) MORGAN STANLEY; U.S. TREASURY NOTE, 6.88%, 3/31/03, $4,000,000 PAR
(3) MORGAN STANLEY; U.S. TREASURY NOTE, 6.88%, 3/31/03, $6,500,000 PAR
(4) MORGAN STANLEY; U.S. TREASURY NOTE, 6.88%, 3/31/03, $5,250,000 PAR
(5) MORGAN STANLEY; U.S. TREASURY NOTE, 6.88%, 3/31/03, $4,250,000 PAR
</TABLE>
<TABLE>
<S> <C>
(C) DESCRIPTIONS OF CERTAIN COLLATERALIZED MORTGAGE OBLIGATIONS ARE AS
FOLLOWS:
LIBOR - LONDON INTERBANK OFFERED RATE.
COFI (11TH DISTRICT) - COST OF FUNDS INDEX OF THE FEDERAL RESERVE'S
11TH DISTRICT.
INVERSE FLOATER - REPRESENTS SECURITIES THAT PAY INTEREST AT RATES
THAT INCREASE (DECREASE) WITH A DECLINE (INCREASE) IN THE SPECIFIED
INDEX. THE INTEREST RATE PAID BY THE INVERSE FLOATER WILL GENERALLY
CHANGE AT A MULTIPLE OF ANY CHANGE IN THE INDEX. INTEREST RATES
DISCLOSED ARE IN EFFECT ON MAY 31, 1995.
</TABLE>
27
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
<TABLE>
<S> <C>
(D) ISSUE IS IDENTIFIED IN CONNECTION WITH THE FOLLOWING OPEN CALL
OPTIONS WRITTEN:
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF EXERCISE EXPIRATION MARKET
TYPE OF CONTRACT CALLS PRICE DATE VALUE
- -------------------------------- --------- -------- ---------- --------
<S> <C> <C> <C> <C>
U.S. TREASURY NOTE
6.88%, 3/31/00 147.50 99.89 6/1/95 $488,594
U.S. TREASURY NOTE
6.88%, 3/31/00 52.50 101.95 6/1/95 73,828
--------- --------
200.00 $562,422
--------- --------
--------- --------
</TABLE>
<TABLE>
<S> <C>
(E) INTEREST RATE AND MATURITY DATE DISCLOSED REPRESENT THE WEIGHTED
AVERAGE COUPON AND WEIGHTED AVERAGE MATURITY FOR THE UNDERLYING
MORTGAGE LOANS AS OF MAY 31, 1995.
(F) FOR INVESTMENT SCHEDULE PRESENTATION, MULTIFAMILY MORTGAGES PURCHASED
ARE SUMMARIZED BY THE PROPERTY NAME AND LOCATION TO WHICH THEY APPLY.
SINGLE FAMILY MORTGAGES ARE SUMMARIZED BY THE INSITITUTION FROM WHICH
THEY WERE PURCHASED AND DESCRIBE THE NUMBER OF LOANS AND GEOGRAPHICAL
LOCATION.
MULTIFAMILY LOANS:
ALDRICH APARTMENTS - MINNEAPOLIS, MN
ALLUMBAUGH SQUARE APARTMENTS - BOISE, ID
ARBOR GLEN APARTMENTS - COLLEGE PARK, GA
ASHEWOOD APARTMENTS - DENVER, CO
AUTUMN CHASE APARTMENTS - JACKSONVILLE, FL
BRAESFOREST APARTMENTS - HOUSTON, TX
BRANDYWINE II APARTMENTS - WILMINGTON, DE
BRENTWOOD HIGHLANDS APARTMENTS - BRENTWOOD, TN
BRIARCLIFF APARTMENTS - ATLANTA, GA
BRIDGE COURT APARTMENTS - OWATONNA, MN
BRYANT SQUARE APARTMENTS - EDMUND, OK
CANDLELITE APARTMENTS - GRANDVIEW, MO
CAPE COD APARTMENTS - OKLAHOMA CITY, OK
CASA DEL VISTA APARTMENTS - CARSON CITY, NV
CENTRE COURT APARTMENTS - NORTH CANTON, OH
CHAPEL HILL APARTMENTS - KANSAS CITY, MO
CHOUTEAU TRACE/BAY APARTMENTS - PONTOON BEACH, IL
COLLEGEVIEW APARTMENTS - POUGHKEEPSIE, NY
COLLEGEVIEW TOWERS - POUGHKEEPSIE, NY
CONCORDIA PLACE APARTMENTS - AUSTIN, TX
CONTINENTAL GARDENS APARTMENTS - GRAND ISLAND, NE
COUNTRY CLUB APARTMENTS - EL RENO, OK
COUNTRY VILLAGE APARTMENTS - MORTON, IL
EL CONQUISTADOR APARTMENTS - TUCSON, AZ
EL PORTAL APARTMENTS - SWEETWATER, FL
EMERALD SHORES APARTMENTS - PHOENIX, AZ
EVERGREEN SQUARE APARTMENTS - BUFFALO, MN
EVERGREEN VILLAGE APARTMENTS - DENVER, CO
FAIRWAY HILLS APARTMENTS - RAPID CITY, SD
FOOTHILLS WEST APARTMENTS - EL PASO, TX
GARCIA APARTMENTS - MIAMI, FL
</TABLE>
28
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
<TABLE>
<S> <C>
GLEN HOLLOW APARTMENTS - CHARLOTTE, NC
GOOSE CREEK APARTMENTS - BLOOMINGTON, IL
GREEN ACRES APARTMENTS - MASSILLON, OH
GREENWOOD APARTMENTS - ATLANTA, GA
HERITAGE APARTMENTS - TULSA, OK
HERITAGE GREEN APARTMENTS - NEWARK, OH
HICKORY RIDGE APARTMENTS - HOPKINSVILLE, TN
HIDDEN COLONY APARTMENTS - DORAVILLE, GA
HIGH VISTA APARTMENTS - EL PASO, TX
JACKSON MANOR TOWNHOMES - GREENVILLE, TX
KINGSTON SQUARE APARTMENTS - KNOXVILLE, TN
LA ARBOLEDA APARTMENTS - SAN ANTONIO, TX
LAKEVILLE APARTMENTS - LAKEVILLE, MN
LASALLE CROSSING APARTMENTS - SHERMAN, TX
MEADOW GLEN APARTMENTS - MIDWEST CITY, OK
MOUNT VERNON APARTMENTS - OKLAHOMA CITY, OK
OLD ORCHARD APARTMENTS - GRAND RAPIDS, MI
PARC DU LAC APARTMENTS - NEW ORLEANS, LA
PARK APARTMENTS - COLORADO SPRINGS, CO
PHILIPPE LANDING APARTMENTS - SAFETY HARBOR, FL
QUAIL BLUFF APARTMENTS - OKLAHOMA CITY, OK
REVERE APARTMENTS - REVERE, MA
RUSH CREEK APARTMENTS - HOUSTON, TX
SHADOWOOD APARTMENTS - NASHVILLE, TN
SHERWOOD LAKE APARTMENTS - TAMPA, FL
SIERRA VISTA APARTMENTS - BOISE, ID
SKYLINE PLACE APARTMENTS - DALLAS, TX
SOMERSET PLACE APARTMENTS - TUCSON, AZ
STONEGATE APARTMENTS - WINDSOR, CO
SUNSET RILL APARTMENTS - KNOXVILLE, TN
SUNVIEW APARTMENTS - RAYMOND, NH
TERRACE GARDENS APARTMENTS - DENVER, CO
THE OAKS OF LAKE BLUFF APARTMENTS - LAKE BLUFF, IL
TIMBER FOREST APARTMENTS - PLANO, TX
TRALEE TERRACE APARTMENTS - COON RAPIDS, MN
TRINITY PLACE APARTMENTS - DEL CITY, OK
WATERFORD APARTMENTS - ZION, IL
WESTMONT APARTMENTS - NASHVILLE, TN
WHITE OAKS APARTMENTS - MASSILLON, OH
WILLOW BROOKE APARTMENTS - TAMPA, FL
WILLOW CREEK APARTMENTS - LITTLE ROCK, AR
WILLOW CREEK APARTMENTS - MIDWEST CITY, OK
WILLOWS APARTMENTS - BAKERSFIELD, CA
</TABLE>
29
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
<TABLE>
<S> <C>
SINGLE FAMILY LOANS:
PRESIDENT HOMES, SALES INVENTORY - 15 SINGLE FAMILY LOANS LOCATED
THROUGHOUT THE MIDWESTERN STATES.
PRESIDENT HOMES, WAREHOUSING INVENTORY - 23 SINGLE FAMILY LOANS
LOCATED THROUGHOUT THE MIDWESTERN STATES.
(G) SECURITIES PURCHASED AS PART OF A PRIVATE PLACEMENT WHICH HAVE NOT
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE
SECURITIES ACT OF 1933.
(H) ALSO APPROXIMATES THE COST FOR FEDERAL INCOME TAX PURPOSES. THE
AGGREGATE GROSS UNREALIZED APPRECIATION AND DEPRECIATION OF
INVESTMENTS IN SECURITIES BASED ON THIS COST WERE AS FOLLOWS:
</TABLE>
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION .... $ 3,145,106
GROSS UNREALIZED DEPRECIATION ...... (3,400,254)
----------
NET UNREALIZED DEPRECIATION .... $ (255,148)
----------
----------
</TABLE>
30
<PAGE>
- --------------------------------------------------------------------------------
SHAREHOLDER UPDATE
ANNUAL MEETING RESULTS
An annual meeting of the fund's shareholders was held on August 22, 1994. Each
matter voted upon at the meeting, as well as the number of votes cast for,
against or withheld, the number of absentions, and the number of broker
non-votes with respect to such matter, are set forth below.
1. The fund's shareholders elected the following eight directors:
<TABLE>
<CAPTION>
Shares Shares Withholding
Voted "For" Authority to Vote
----------- ------------------
<S> <C> <C>
David T. Bennett..... 8,349,742 194,055
Jaye F. Dyer......... 8,350,904 192,892
William H. Ellis..... 8,351,412 192,384
Karol D. Emmerich.... 8,346,212 197,584
Luella G. Goldberg... 8,348,198 195,598
John T. Golle*....... 8,335,101 208,695
Edward J. Kohler*.... 8,349,732 194,064
George Latimer....... 8,335,252 208,545
<FN>
* MR. KOHLER RESIGNED AS DIRECTOR OF THE FUND, EFFECTIVE NOVEMBER 30, 1994.
MR. GOLLE RESIGNED AS DIRECTOR OF THE FUND, EFFECTIVE JUNE 1, 1995.
</TABLE>
2. The fund's shareholders ratified the selection by a majority of the
independent members of the fund's Board of Directors of KPMG Peat
Marwick LLP as the independent public accountants for the fund for the
fiscal year ending November 30, 1994. The following votes were cast
regarding this matter:
<TABLE>
<CAPTION>
Shares Shares Voted Broker
Voted "For" "Against" Absentions Non-Votes
- ----------- --------------- ----------- -----------
<S> <C> <C> <C>
8,163,811 64,354 315,631 --
</TABLE>
SHARE REPURCHASE PROGRAM
Your fund's board of directors has reapproved the fund's share repurchase
program, which enables the fund to "buy back" shares of its common stock in the
open market. Repurchases may only be made when the previous day's closing market
price per share was at a discount from net asset value. Repurchases cannot
exceed 3% of the fund's originally issued shares.
WHAT EFFECT WILL THIS PROGRAM HAVE ON SHAREHOLDERS?
- - We do not expect any adverse impact on the adviser's ability to manage the
fund.
- - Because repurchases will be at a price below net asset value, remaining shares
outstanding may experience a slight increase in net asset value.
31
<PAGE>
- --------------------------------------------------------------------------------
SHAREHOLDER UPDATE
- - Although the effect of share repurchases on market price is less certain, the
board of directors believes the program may have a favorable effect on the
market price of fund shares.
- - We do not anticipate any material increase in the fund's expense ratio.
WHEN WILL SHARES BE REPURCHASED?
Share repurchases may be made from time to time and may be discontinued at any
time. Share repurchases are not mandatory when fund shares are trading at a
discount from net asset value; all repurchases will be at the discretion of the
fund's investment adviser. The board of directors will consider whether to
continue the share repurchase program on at least a semiannual basis and will
notify shareholders of its determination in the next semiannual or annual
report.
HOW WILL SHARES BE REPURCHASED?
We expect to finance the repurchase of shares by liquidating portfolio
securities or using current cash balances. We do not anticipate borrowing in
order to finance share repurchases.
32
<PAGE>
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
<TABLE>
<S> <C>
DIRECTORS David T. Bennett, CHAIRMAN, HIGHLAND HOMES, INC.,
USL PRODUCTS, INC., AND KIEFER BUILT, INC., OF
COUNSEL,
GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A.
Jaye F. Dyer, PRESIDENT, DYER MANAGEMENT COMPANY
William H. Ellis, PRESIDENT, PIPER JAFFRAY COMPANIES INC.,
PIPER CAPITAL MANAGEMENT INCORPORATED
Karol D. Emmerich, PRESIDENT, THE PARACLETE GROUP
Luella G. Goldberg, DIRECTOR, TCF FINANCIAL,
RELIASTAR CORP., HORMEL FOODS CORP.
George Latimer, DIRECTOR, SPECIAL ACTIONS OFFICE, OFFICE
OF THE SECRETARY, DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
OFFICERS William H. Ellis, CHAIRMAN OF THE BOARD
Michael P. Jansen, PRESIDENT
Worth Bruntjen, SENIOR VICE PRESIDENT
Marijo A. Goldstein, SENIOR VICE PRESIDENT
Robert H. Nelson, SENIOR VICE PRESIDENT
John G. Wenker, SENIOR VICE PRESIDENT
James A. Berman, VICE PRESIDENT
Kevin A. Jansen, VICE PRESIDENT
Thomas McGlinch, VICE PRESIDENT
Charles N. Hayssen, TREASURER
David E. Rosedahl, SECRETARY
INVESTMENT Piper Capital Management Incorporated
ADVISER 222 SOUTH NINTH STREET, MINNEAPOLIS, MN 55402
TRANSFER AGENT Investors Fiduciary Trust Company
AND RECORD 127 WEST 10TH STREET, KANSAS CITY, MO 64105-1716
KEEPER
LEGAL COUNSEL Dorsey & Whitney P.L.L.P.
220 SOUTH SIXTH STREET, MINNEAPOLIS, MN 55402
CUSTODIAN First Trust
180 EAST FIFTH STREET, ST. PAUL, MN 55101
</TABLE>
33
<PAGE>
Bulk Rate
U.S. Postage
PAID
Permit No. 3008
Mpls., MN
PIPER CAPITAL
MANAGEMENT
PIPER CAPITAL MANAGEMENT INCORPORATED
222 SOUTH NINTH STREET
MINNEAPOLIS, MN 55402-3804
PIPER JAFFRAY INC, 241-95 SLA-02 FUND SPONSOR AND NASD MEMBER.
THIS DOCUMENT IS PRINTED ON PAPER MADE FROM
100% TOTAL RECOVERED FIBER, INCLUDING 15% POST-CONSUMER WASTE.
241-95 SLA-02
STAPLES
