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DELAFIELD
FUND, INC.
Semi-Annual Report
March 31, 1995
(Unaudited)
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<PAGE>
1
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DELAFIELD 600 FIFTH AVENUE, NEW YORK, N.Y. 10020
FUND, INC. (212) 830-5200
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Dear Shareholder:
We are pleased to present the semi-annual report of Delafield Fund, Inc. for the
period ended March 31, 1995.
The Delafield Fund's net asset value per share on March 31, 1995 was $11.49. The
Fund had net assets of $13,028,543 and 168 active shareholders. After adjusting
for dividend payments of $0.21 per share, the Fund registered an increase of
18.09% since inception. The Fund held 48 companies, with the top ten holdings
accounting for 27% of total net assets overall. Equity investments comprised 82%
of the $13.0 million portfolio on March 31, 1995
We thank you for your support and look forward to serving your needs.
Sincerely,
/s/ J. Dennis Delafield /s/ Vincent Sellecchia
J. Dennis Delafield Vincent Sellecchia
Chairman President
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DELAFIELD FUND, INC.
STATEMENT OF NET ASSETS
MARCH 31, 1995
(UNAUDITED)
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<TABLE>
<CAPTION>
Value
Shares (Note 1)
Common Stocks (82.17%)
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<S> <C> <C>
Banking (6.67%)
California Federal Bank, Federal Savings Bank* 15,000 $ 159,375
Mellon Bank Corporation 10,000 407,500
Boatman's Bancshares, Inc. 10,000 302,500
869,375
Chemicals/Pharmaceutical (1.04%)
Mallinckrodt Group 3,000 101,250
Huntingdon International Holdings p.l.c. 10,000 33,750
135,000
Consumer Products and Services (1.92%)
Bush Industries 20,000 250,000
Energy (7.99%)
Energy Service Company* 15,000 211,875
J Ray McDermott S.A. 12,000 324,000
McDermott International, Inc. 6,100 166,987
Oryx Energy Co.* 12,000 151,500
Louisiana Land & Exploration Company 5,000 186,875
1,041,237
Food and Beverage (2.78%)
Dole Food Company, Inc. 12,500 362,500
Industrial Products (13.47%)
AMETEK, Inc. 18,000 326,250
Chemfab Corporation* 15,000 224,062
Federal Mogul Corporation 10,000 180,000
Harsco Corporation 7,500 330,000
Sheldahl, Inc.* 15,000 180,000
Sundstrand Corp. 6,000 302,250
Westinghouse Electric 15,000 211,875
1,754,437
Industrial Services (4.49%)
Commerce Clearing House 10,000 170,000
Moore Corporation 7,000 136,500
Univar Corp. 25,000 278,125
584,625
Insurance (Life) (11.72%)
Life Partners Group 10,000 196,250
PennCorp Financial Group, Inc. 20,000 352,500
Provident Life and Accident Insurance
Company of America (Class A) 2,000 45,750
</TABLE>
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See Notes to Financial Statements.
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3
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<TABLE>
<CAPTION>
Value
Shares (Note 1)
Common Stocks (Continued)
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<S> <C> <C>
Insurance (Life) (Continued)
Provident Life and Accident Insurance
Company of America (Class B) 16,000 $ 362,000
Security-Connecticut Corp. 10,000 248,750
UNUM Corporation 7,100 321,275
1,526,525
Insurance (Prop/Casualty) (5.95%)
Allmerica Property & Casualty 18,500 353,813
Citizens Corporation 5,000 83,750
TIG Holdings 15,000 337,500
775,063
Insurance (Reinsurance) (3.27%)
Re Capital Corporation 10,000 183,750
Zurich Reinsurance Centre Holdings, Inc.* 8,000 243,000
426,750
Natural Resources (2.18%)
Cyprus Amax Mineral Company 10,000 283,750
Office Equipment (2.52%)
Recognition International Inc.* 20,000 135,000
Wang Laboratories, Inc.* 15,000 194,063
329,063
Real Estate (3.45%)
Catellus Development Corp. 30,000 172,500
Kimco Realty Corp. 3,000 115,125
RPS Realty Corp. 35,000 161,875
449,500
Retail (4.36%)
Dress Barn, Inc.* 25,000 243,750
The Limited, Inc. 14,000 323,750
567,500
Telecommunications (1.14%)
M/A-Com, Inc.* 15,000 148,125
Textiles/Apparel (6.45%)
Delta Woodside Industries, Inc. 10,000 83,750
Farah Manufacturing* 31,000 236,375
Fruit of the Loom, Inc.* 10,000 262,500
Haggar Corp. 12,000 258,000
840,625
</TABLE>
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See Notes to Financial Statements.
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DELAFIELD FUND, INC.
STATEMENT OF NET ASSETS
MARCH 31, 1995 (CONTINUED)
(UNAUDITED)
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<TABLE>
<CAPTION>
Value
Shares (Note 1)
Common Stocks (Continued)
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<S> <C> <C>
Miscellaneous (2.77%)
Florida East Coast Industries 1,500 $ 110,625
Gilbert Associates, Inc. 20,000 250,000
360,625
Total Common Stocks (Cost $9,629,609) $ 10,704,700
Corporate Bonds (1.58%)
AMETEK, Inc. 9.750%
debentures, due 03/15/2004 200,000 206,000
Total Corporate Bonds (Cost $200,000) $ 206,000
<CAPTION>
Face Value
Amount (Note 1)
U.S.Government Obligations (6.10%)
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<S> <C> <C>
U.S. Treasury Notes, 4.625%, due 02/29/96 $ 300,000 295,125
U.S. Treasury Notes, 7.000%, due 04/15/99 500,000 500,000
Total U.S. Government Obligations (Cost $796,657) $ 795,125
<CAPTION>
Short-Term Investments (12.34%)
Repurchase Agreements (12.34%)
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<S> <C> <C>
Morgan (J.P.) Securities, Inc., 6.050%, due 04/03/95
(Collateralized by $1,438,000
U.S. Treasury Notes, 8.875%, due 08/15/17) $ 1,608,000 1,608,000
Total Short-Term Investments (Cost $1,608,000) $ 1,608,000
Total Investments (102.19%) (Cost $12,234,266+) 13,313,825
Liabilities in Excess of Cash and Other Assets (-2.19%) ( 285,282)
Net Assets (100.00%), 1,134,385 shares outstanding (Note 3) $ 13,028,543
Net asset value, offering and redemption price per share. $ 11.49
* Non-income producing.
+ Aggregate cost for federal income tax purposes isidentical. Aggregate
unrealized appreciation and depreciation, based on cost for Federal income
tax purposes, are $1,234,444 and $154,885 respectively.
</TABLE>
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See Notes to Financial Statements.
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5
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DELAFIELD FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
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<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest..................................................................... $ 1,681
Dividends.................................................................... 6,599
Total income.............................................................. 138,280
Expenses: (Note 2)
Investment management fee.................................................... 21,942
Custodian, shareholder servicing and related shareholder expenses............ 17,358
Legal, compliance and filing fees............................................ 13,137
Audit and accounting......................................................... 21,614
Directors' fees and expenses................................................. 3,764
Amortization of organization costs........................................... 4,335
Other........................................................................ 299
Total expenses............................................................ 82,449
Net investment income..................................................... 55,831
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments........................................ 231,622
Net unrealized appreciation(depreciation) of investments....................... 641,773
Net gain (loss) on investments.................................. 873,395
Increase (decrease) in net assets from operations.............................. $ 929,226
</TABLE>
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DELAFIELD FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
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<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
November 19, 1993
Six Months Ended (Inception) to
March 31, 1995 September 30, 1994
Operations:
<S> <C> <C>
Net investment income........................................... $ 55,831 $ 53,186
Net realized gain on investments................................ 231,622 113,563
Net change in unrealized appreciation (depreciation)............ 641,773 437,786
Increase (decrease) in net assets from operations........... 929,226 604,535
Distributions from:
Net investment income.......................................... ( 56,015) ( 53,384)
Net realized gain on investments............................... ( 144,553) --
Capital share transactions (Note 3)............................ 2,641,750 9,006,984
Total increase (decrease)................................... 3,370,408 9,558,135
Net assets:
Beginning of period............................................ 9,658,135 100,000
End of period.................................................. $ 13,028,543 $ 9,658,135
</TABLE>
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See Notes to Financial Statements.
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DELAFIELD FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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1. Summary of Accounting Policies
Delafield Fund, Inc. is a no-load, diversified, open-end management investment
company registered under the Investment Company Act of 1940. Its financial
statements are prepared in accordance with generally accepted accounting
principles for investment companies as follows:
a) Valuation of Securities -
Securities traded on a national securities exchange or admitted to trading
on the National Association of Securities Dealers Inc. Automated Quotations
National List are valued at the last reported sales price on the last
business day of the fiscal period. Common stocks for which no sale was
reported on that date and over-the-counter securities, are valued at the
mean between the last reported bid and asked prices. United States
Government obligations and other debt instruments having sixty days or less
remaining until maturity are stated at amortized cost. Debt instruments
having a remaining maturity of more than sixty days will be valued at the
highest bid price obtained from a dealer maintaining an active market in
that security or on the basis of prices obtained from a pricing service
approved as reliable by the Board of Directors. All other investment
assets, including restricted and not readily marketable securities, are
valued in such manner as the Board of Directors in good faith deems
appropriate to reflect their fair market value.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income to its shareholders. Therefore, no provision for
federal income tax is required.
c) General -
Securities transactions are recorded on the trade date basis. Interest
income is accrued as earned and dividend income is recorded on the
ex-dividend date. Realized gains and losses from securities transactions
are recorded on the identified cost basis. Dividends and capital gain
distributions to shareholders are recorded on the ex-dividend date. It is
the Fund's policy to take possession of securities as collateral under
repurchase agreements and to determine on a daily basis that the value of
such securities plus accrued interest are sufficient to cover the value of
the repurchase agreements.
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management, L.P. ("The Manager") equal to .80% of the
Fund's average daily net assets. The Manager is required to reimburse the Fund
for its expenses (exclusive of interest, taxes, brokerage, and extraordinary
expenses) to the
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DELAFIELD FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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2. Investment Management Fees and Other Transactions with Affiliates (Continued)
extent that such expenses, including the management fee, for any fiscal year
exceed 2 1/2% of the first $30 million of its average net assets, 2% of the next
$70 million of its average net assets and 1 1/2% of its average net assets in
excess of $100 million. No such reimbursement was required for the period ended
March 31, 1995.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .20% of the Fund's average daily net assets.
Pursuant to a Distribution Plan adopted under Securities Exchange Commission
Rule 12b-1, the Fund and Reich & Tang Distributors L.P. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement. For
its services under the Shareholder Servicing Agreement, the Distributor recives
from the Fund an annual fee equal to .25% of the Fund's average daily net asets.
There were no additional expenses borne by the Fund pursuant to the Distribution
Plan.
During the period ended March 31, 1995, the Manager and the Distributor
voluntarily waived investment management fees, administration fees and
shareholder servicing fees of $19,408, $10,338 and $12,922 respectively.
Brokerage commissions paid during the period to New England Investment
Companies, L.P. amounted to $7,335.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$1,500 per annum plus $250 per meeting attended.
3. Capital Stock
At March 31, 1995 20,000,000,000 shares of $.001 par value stock were authorized
and capital paid in amounted to $11,748,734. Transactions in capital stock were
as follows:
<TABLE>
<CAPTION>
Six Months November 19, 1993
Ended (Inception) To
March 31, 1995 September 30, 1994
--------------------------------- ------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Sold................................. 260,231 2,841,665 896,231 9,145,032
Issued on reinvestment of dividends 20,822 220,362 5,041 53,002
Redeemed............................. ( 39,502) ( 420,277) ( 18,438) ( 191,050)
Net increase (decrease).............. ( 241,551) 2,641,750 882,834 9,006,984
</TABLE>
4. Investment Transactions
Purchases and sales of investment securities, other than U.S. Government direct
and agency obligations and short-term investments, totaled $5,940,449 and
$2,463,485 respectively. Accumulated undistributed net realized gains at March
31, 1995 amounted to $220,632.
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<TABLE>
<CAPTION>
5. Selected Financial Information
November 19, 1993
Six Months (Inception date)
Ended to
March 31, 1995 September 30, 1994
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C>
Net asset value, beginning of period...... $ 10.82 $ 10.00
----------- -----------
Income from investment operations
Net investment income................... 0.05 0.07
Net realized and unrealized
gains (losses) on investments.......... 0.83 0.82
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Total from investment operations.......... 0.88 0.89
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Less distributions:
Dividends from net investment income... ( .05) ( .07)
Distribution from net realized gains on investments ( 0.16) ---
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Total distributions....................... ( 0.21) ( .07)
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Net asset value, end of period............ $ 11.49 $ 10.82
=========== ===========
Total Return.............................. 8.41%+ 8.93%+
=========== ===========
<CAPTION>
Ratios/Supplemental Data
<S> <C> <C>
Net assets, end of period(000)............ $ 13,028 $ 9,658
Ratios to average net assets:
Expenses............................... 1.60%*++ 1.78%*++
Net investment income.................. 1.08%++ 0.96%*++
Portfolio turnover rate.................... 29.59 42.84
* Annualized
+ Not Annualized
++ Net of investment management, administration, and shareholder servicing
fees waived equivalent to .83% and 1.12%, respectively, of average net
assets.
</TABLE>
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[This Page Intentionally Left Blank.]
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This report is submitted for the general information
of the shareholders of the Fund. It is not authorized
for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective
prospectus, which includes information regarding the
Fund's objectives and policies, experience of its
management, marketability of shares, and other
information.
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Delafield Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
Dividend Disbursing Agent
Supervised Service Company
811 Main Street
Kansas City, MO 64105
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