Interactive Investments
Semi-Annual Report
June 30,1996
Table of Contents
1996 Results 1
Portfolio Discussion 2
Portfolio Detail 3
Statement of Purchases & Sales 3
Statement of Surplus 3
Statement of Remuneration 3
Financial Statements 4
1996: First Six Month
The Technology Value Fund gained 38.5% during the first six
months of 1996. Most of this appreciation occured during
the second quarter, when the fund gained 29.6%, outpacing
all other funds.
Relative to our peer group, science and technology funds,
TVF's performance ranked #2 for Q1, #1 for Q2, #1 year-to-
date, and #1 for the past twelve months. The fund was #2
among all funds over the past twelve-months.
(Source: Lipper Analytical)
Long-Term Performance
The chart below shows TVFs monthly performance since
inception versus the three most commonly referenced market
indices, The Dow Jones Industrial Average, Standard & Poor's
500 index and the NASDAQ composite.
As always, past performance is not a guarantee of future
results.
By any measure, TVFs first-half performance was good.
Although thats great news for our investors, we must
caution that such returns are well above any reasonable
long-term expectation.
We are happy to characterize the first half of 1996 as a
good example of TVFs investment style, good analysis and
good inputs producing superior results.
The Technology Value Fund
Performance vs. Market Indicies
1/1/96 - 5/20/94 -
6/30/96 6/30/96
TVF 38.5% 179.7%
DJIA 10.5% 50.1%
S&P 500 8.9% 47.4%
NASDAQ 12.6% 63.1%
Relative Performance: Technology Value Fund vs. Market
Indices
<GRAPH>
Portfolio Discussion
During the first half of 1996, TVF more than quadrupled in
size. Strong cash inflows and a turbulent market afforded us
ample opportunity to adjust our sector weightings.
The chart below shows the Funds holdings by sector as of
6/30/96. Our weighting in semiconductors fell from 30.5% to
12.6%. We suffered losses in Altera and C-Cube microsystems,
while profitably adding to our Intel position. Our
investment in the semiconductor capital equipment sector
fell from 12.2% to 7.6%. We established a new position in
Opal.
Our investment in the computer peripherals sector fell from
10.9% to zero when we liquidated our investment in Iomega.
The 3.6% weighting in the networking sector represents a new
position in Cisco Systems.
Although we increased our position in Ikos Systems by more
than one-half, the total portfolio grew, reducing our EDA
weighting from 7.9% to 5.8%.
Our weighting in medical stocks contracted from 27.2% to
21.7%. We established a new position in Arterial Vascular,
and added to our positions in Everest Medical, Medcath,
MiniMed and Target Therapeutics. Corvita was acquired by
Johnson & Johnson.
Finally, our weighting in software contracted from 6.8% to
1.8%.
Looking forward, technology issues are temporarily out of
favor on Wall Street. This once again gives us opportunities
to invest in great companies at distressed prices - the
precise scenario we thrive on.
Fund Holdings by Sector as of 6/30/96
<GRAPH>
Technology Value Fund 6/30/96
Security Shares Price Cost Basis G/L Balance
Adobe 3,500 35 7/8 141,875 -16,313 125,563
Altera 3,000 38 105,425 8,575 114,000
Amgen 4,000 54 182,175 33,825 216,000
Applied Materials 5,800 30 1/2 244,906 -68,006 176,900
Arterial Vascular 3,000 36 1/4 99,525 9,225 108,750
Boston Scientific 1,336 45 37,174 22,946 60,120
C-Cube Micro. 5,000 33 195,375 -30,375 165,000
Centocor 6,000 29 7/8 204,800 -25,550 179,250
Cirrus Logic 2,000 17 1/2 48,938 -13,938 35,000
Cisco Systems 7,000 56 5/8 349,788 46,588 396,375
Daw Technology 10,000 5 68,500 -18,500 50,000
Endosonics 10,000 17 7/8 153,813 24,938 178,750
Everest Medical 25,000 4 3/4 95,738 23,012 118,750
IKOS 30,000 21 1/8 428,938 204,813 633,750
Informix 3,000 22 1/2 67,188 313 67,500
Intel 7,200 73 7/16 506,938 21,813 528,750
Lam Research 4,000 26 177,450 -73,450 104,000
Lattice Semi 10,000 24 1/8 319,125 -77,875 241,250
MedCath 4,000 12 131,088 -83,088 48,000
Medtronic 9,000 56 459,300 44,700 504,000
Mentor 4,000 25 1/2 44,875 57,125 102,000
Mini-Med 20,000 29 3/4 480,726 114,274 595,000
Novellus 3,000 36 173,338 -65,338 108,000
Opal Inc. 30,000 12 3/4 432,125 -49,625 382,500
Quality Semi 10,000 6 5/8 84,000 -17,750 66,250
Target Ther. 5,900 41 303,333 -61,433 241,900
Vitesse 1,000 24 8,875 15,125 24,000
Xilinx 6,000 31 3/4 157,421 33,079 190,500
- -Cash- 5,097,575 1 5,097,575 0 5,097,575
Total Investments 10,824,771 59,110 10,859,432
Statement of Aggregate Purchases & Sales of Investment
Securities
Aggregate Purchases $4,476,146
Aggregate Sales $3,132,694
Statement of Aggregate Remuneration
Regular compensation to trustees of the Fund: None.
Special compensation to trustees of the Fund: $400
($100 per meeting for each outside trustee as reimbursement
for out-of-pocket meeting expenses.)
Regular compensation to officers of the Fund: None.
Compensation to person affiliated with officers of the Fund:
None.
Statement of Surplus
For the first half of 1996, from January 1, 1996 through
June 30, 1996, Interactive Investment's Technology Value
Fund did not maintain any surplus accounts.
Interactive Investments Statement of Assets and Liabilities
June 30, 1996
ASSETS
Cash in Bank $ 58
Accrued interest receivable 18,680
Investment securities, at value 10,776,069
(cost $10,716,959)
Total assets 10,794,807
LIABILITY and accrued expenses 17,036
Total liabilities 17,036
NET ASSETS at value 10,777,771
NET ASSETS COMPRISED OF:
Paid-in capital $ 8,539,629
Net unrealized gain on investments 59,110
Dividend distributions in excess of net
investment income and realized gains
on investments (22,198)
Undistributed Net Investment Income 2,201,230
Total Net Assets $10,777,771
Statement of Operations
For Six-Months Ending June 30, 1996
INVESTMENT INCOME - interest and dividends earned $
34,330
EXPENSES - investment advisory fees 58,676
NET INVESTMENT INCOME (LOSS) (24,346)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Realized gains from security transactions -
Proceeds from sales 3,013,970
Cost of securities sold 788,394
Realized gains 2,225,576
Sub-total 2,201,230
Increases in the amount of unrealized appreciation -
December 31, 1995 (549,516)
June 30, 1996 59,110
Increase (490,406)
NET RESULTS FROM OPERATIONS $1,710,824
