<PAGE> 1
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
CENTURA FEDERAL SECURITIES INCOME FUND
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
December 15, 1995
Dear Shareholder:
This mid-year report covering the period May 1, 1995 through October 31,
1995 reflects the extraordinarily strong capital markets we have experienced in
both stocks and bonds. Each of our three Funds, the Centura Equity Growth Fund,
the Centura Federal Securities Income Fund, and the Centura North Carolina
Tax-Free Bond Fund, will be addressed here along with our best estimate for the
future.
ECONOMIC/CAPITAL MARKETS COMMENTARY
The six month period covered here has been as beneficial to investors as
any we are likely to experience. Corporate America has produced record profits,
inflation has remained modest by modern standards, we are near full employment,
and our position as the technological leader of the world grows stronger
sequentially. As 1995 draws to a close, however, we are not without concerns and
are adjusting portfolios accordingly. The ebullient equity markets of 1995 will,
we feel, face slowing profit growth in 1996 and may well develop into a two
tiered, "haves" and "have nots" type of scenario. Additional support from
continued falling interest rates (which we expect) will be sorely needed.
Successful resolution of the balanced budget stalemate in Washington sometime
before year-end should be followed by loosening by the Federal Reserve to
replace federal spending stimulus already declining.
CENTURA EQUITY GROWTH FUND
Market rotation continues, with the current tendency away from both
cyclicals and technology -- whose performance earlier this year has been
exceptional. Weightings in cyclicals and basic industry have been reduced but
not eliminated. We retain confidence in selected financials, aerospace, and
increasingly those companies involved in health care. The tone of the Fund has
become more defensive, but we do not expect a full-scale bear market to evolve.
CENTURA FEDERAL SECURITIES INCOME FUND
The bond market has continued to rally as investors have correctly
anticipated lower rates by the Federal Reserve due to a slowing economy and an
expected balanced budget. The Federal Securities Income Fund has participated in
the rally due to the extension of maturities to the 10 year area. The Fund
continues to be over 78% invested in U.S. Treasuries and roughly 20% in U.S.
Government Agencies.
<PAGE> 2
We are quite pleased with the success brought on by the extension of
allowable maturities in light of the recent decline in rates. Our risk-adjusted
return is right where we believe our shareholders expect us to be.
CENTURA NORTH CAROLINA TAX-FREE FUND
At the Fund's mid-year point, October 31, 1995, the municipal market has a
general direction of lower interest rates and rising bond prices. After periods
of nonmovement in the municipal market, we have begun to see better prices in
municipal bonds due to less fear of a major tax change. We have continued to
extend the Fund's maturity since extending the maximum maturity range allowable
from 10 years to 15 years.
The Fund continues to have a very high Moody's Investment Service rating on
its bonds. The average rating is AA1, and the Fund continues to hold a large
number of Unlimited Tax General Obligation Bonds. With the high quality of North
Carolina debt, we believe we can maintain the Funds high average quality along
with a representative yield.
CAPITAL MARKET OUTLOOK
The future at this juncture seems to indicate stronger performance in bonds
than in equities as companies adjust to a GDP of 2.5-3.0% and slower profit
growth. Timely action on the part of the Federal Reserve will be important as
will continued corporate restructuring to maintain margins with lower demand. We
remain optimistic, but cautionary.
Your support and confidence has been constant and very much appreciated
during the past period as our new funds have grown. You may expect our continued
best efforts to deliver superior returns.
Sincerely,
/s/ D. CARLISLE WHITLOCK
- -------------------------
D. Carlisle Whitlock
Senior Vice President &
Senior Trust Officer
Centura Bank
2
<PAGE> 3
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- (UNAUDITED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- 96.4%
AEROSPACE -- 7.3%
67,200 Boeing Co................................................. $ 3,148,025 $ 4,410,000
100,000 Precision Castparts Corp.................................. 2,139,836 3,575,000
----------- ------------
5,287,861 7,985,000
----------- ------------
BUSINESS EQUIPMENT & SERVICES -- 4.3%
36,000 Xerox Corp................................................ 3,740,114 4,671,000
----------- ------------
CHEMICALS -- 7.0%
110,000 Cabot Corp................................................ 3,301,090 5,225,000
100,000 Engelhard Corp............................................ 2,421,536 2,487,500
----------- ------------
5,722,626 7,712,500
----------- ------------
CAPITAL GOODS -- 4.8%
130,000 Briggs & Stratton......................................... 4,564,798 5,248,750
----------- ------------
CAPITAL GOODS/TECHNOLOGY -- 4.2%
51,500 United Technologies Corp.................................. 4,522,200 4,570,625
----------- ------------
CONSUMER CYCLICALS -- 2.1%
105,000 Gentex Corp*.............................................. 2,469,875 2,336,250
----------- ------------
CONSUMER & INDUSTRIAL PRODUCTS -- 3.8%
66,000 General Electric Co....................................... 3,141,520 4,174,500
----------- ------------
CONSUMER STAPLE PRODUCTS -- 3.3%
103,000 Millipore Corp............................................ 2,841,518 3,643,625
----------- ------------
ELECTRICAL EQUIPMENT -- 3.6%
100,000 Amp Inc................................................... 3,847,316 3,925,000
----------- ------------
ENERGY -- 3.1%
100,000 Tosco Corp................................................ 3,507,474 3,450,000
----------- ------------
ENVIRONMENTAL CONTROL -- 3.9%
70,000 Molten Metal Technology Corp.*............................ 1,427,000 2,695,000
100,000 Newpark Resources Inc..................................... 1,728,663 1,587,500
----------- ------------
3,155,663 4,282,500
----------- ------------
FOREST PRODUCTS & PAPERS -- 4.0%
100,000 Bowater Inc............................................... 3,927,688 4,425,000
----------- ------------
FINANCIAL SERVICES -- 7.0%
107,000 American Express Company.................................. 2,958,922 4,346,875
60,000 Household International Inc............................... 2,751,265 3,375,000
----------- ------------
5,710,187 7,721,875
----------- ------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
SHARES/ MARKET
PRINCIPAL COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
HEALTHCARE MANAGEMENT -- 2.3%
80,000 Medaphis Corp.*........................................... $ 2,298,183 $ 2,540,000
----------- ------------
HOLDINGS CO. -- DIVERSIFIED -- 1.7%
120,000 ACX Technologies, Inc.*................................... 2,239,438 1,860,000
----------- ------------
INSURANCE -- 7.3%
150,000 Provident Life & Accident................................. 3,503,250 4,012,500
60,000 Jefferson Pilot Corp...................................... 3,092,260 3,960,000
----------- ------------
6,595,510 7,972,500
----------- ------------
IRON FOUNDRY -- 1.7%
160,300 Intermet Corp.*........................................... 1,318,537 1,863,488
----------- ------------
MINING -- 6.4%
100,000 Potash Corp............................................... 3,246,552 6,962,500
----------- ------------
PHARMACEUTICALS -- 3.1%
60,200 Allergan Inc.............................................. 1,680,352 1,768,375
33,600 Rhone-Poulenc Rorer Inc................................... 1,515,024 1,583,400
----------- ------------
3,195,376 3,351,775
----------- ------------
RAW MATERIALS -- 4.4%
100,000 Nucor Inc................................................. 5,994,600 4,812,500
----------- ------------
RETAIL -- SPECIALTY LINE -- 3.3%
144,000 Autozone Inc.*............................................ 3,393,725 3,564,000
----------- ------------
TECHNOLOGY -- 6.7%
80,000 Applied Materials Inc..................................... 4,322,500 4,010,000
50,000 Computer Sciences Corp.*.................................. 2,602,510 3,343,750
----------- ------------
6,925,010 7,353,750
----------- ------------
TRUCKING & LEASING -- 1.1%
111,000 Celadon Group Inc.*....................................... 1,515,552 1,165,500
----------- ------------
TOTAL COMMON STOCKS....................................... 89,161,323 105,592,638
----------- ------------
U.S. TREASURY BILL -- 1.8%
2,000,000 U.S. Treasury Bill, due 11/30/95.......................... 1,991,703 1,991,703
----------- ------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
SHARES/ MARKET
PRINCIPAL COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
MONEY MARKET FUNDS -- 1.4%
904,759 Financial Square Prime Obligations Portfolio.............. $ 904,759 $ 904,759
637,589 Temp Investment Fund...................................... 637,589 637,589
----------- ------------
TOTAL MONEY MARKET FUNDS.................................. 1,542,348 1,542,348
----------- ------------
TOTAL INVESTMENTS -- 99.6%................................ $92,695,374+ $109,126,689
============
ASSETS IN EXCESS OF OTHER LIABILITIES -- 0.4%............. 436,844
------------
NET ASSETS -- 100.0%...................................... $109,563,533
=============
</TABLE>
- ---------------
* Non-income producing security.
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
5
<PAGE> 6
CENTURA FUNDS, INC.
CENTURA FEDERAL SECURITIES INCOME FUND
PORTFOLIO OF INVESTMENTS -- (UNAUDITED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ------------ ------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 17.2%
FEDERAL HOME LOAN BANK -- 5.0%
7.89%, 12/23/97........................................ $2,000,000 $ 2,000,000 $ 2,084,959
7.02%, 07/06/99........................................ 3,000,000 2,990,156 3,114,360
------------ ------------
4,990,156 5,199,319
------------ ------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.9%
7.35%, 06/01/05........................................ 2,000,000 2,000,000 2,013,459
------------ ------------
FEDERAL FARM CREDIT BANK -- 5.3%
Medium Term Note 7.61%, 03/16/98....................... 3,000,000 3,000,000 3,019,739
5.79%, 03/01/99........................................ 2,500,000 2,420,474 2,483,350
------------ ------------
5,420,474 5,503,089
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 5.0%
7.29%, 09/22/99........................................ 2,000,000 1,980,523 2,046,480
7.40%, 07/01/04........................................ 3,000,000 3,176,309 3,211,229
------------ ------------
5,156,832 5,257,709
------------ ------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS................. 17,567,462 17,973,576
------------ ------------
U.S. TREASURY NOTES -- 78.6%
9.375%, 04/15/96....................................... 5,000,000 5,047,470 5,084,649
7.875%, 07/15/96....................................... 2,000,000 2,019,193 2,031,339
6.875%, 10/31/96....................................... 3,000,000 3,017,758 3,037,260
6.125%, 12/31/96....................................... 3,000,000 2,998,310 3,020,280
6.875%, 04/30/97....................................... 2,000,000 2,013,799 2,036,420
5.500%, 09/30/97....................................... 5,000,000 4,924,770 4,991,650
5.250%, 07/31/98....................................... 5,000,000 4,847,636 4,946,750
7.125%, 10/15/98....................................... 5,000,000 5,046,431 5,193,850
5.125%, 12/31/98....................................... 5,000,000 4,757,317 4,918,750
6.375%, 01/15/99....................................... 5,000,000 4,953,778 5,097,050
7.000%, 04/15/99....................................... 5,000,000 5,013,407 5,193,150
6.000%, 10/15/99....................................... 5,000,000 4,865,796 5,043,450
8.500%, 02/15/00....................................... 5,000,000 5,169,814 5,505,400
7.125%, 02/29/00....................................... 5,000,000 4,977,031 5,249,800
5.750%, 08/15/03....................................... 5,000,000 4,861,708 4,934,800
7.875%, 11/15/04....................................... 5,000,000 5,359,989 5,635,400
6.500%, 05/15/05....................................... 5,000,000 5,122,913 5,175,750
6.500%, 08/15/05....................................... 5,000,000 4,976,564 5,178,700
------------ ------------
TOTAL U.S. TREASURY NOTES................................ 79,973,684 82,274,448
------------ ------------
MONEY MARKET FUND -- 3.4%
Goldman Sachs Institutional Treasury Instrument
Portfolio............................................ 3,537,836 3,537,836 3,537,836
------------ ------------
TOTAL INVESTMENTS -- 99.2%............................... $101,078,982+ $103,785,860
=============
ASSETS IN EXCESS OF OTHER LIABILITIES -- 0.8%............ 886,054
------------
NET ASSETS -- 100%....................................... $104,671,914
=============
</TABLE>
- ---------------
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
6
<PAGE> 7
CENTURA FUNDS, INC.
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
PORTFOLIO OF INVESTMENTS -- (UNAUDITED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL MARKET
RATINGS* AMOUNT COST VALUE
- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
NORTH CAROLINA MUNICIPAL OBLIGATIONS -- 97.9%
Aa/AA- Alamance County UTGO, 5.70%, 05/01/96........ $ 350,000 $ 352,182 $ 353,490
Aa/AA- Buncombe County UTGO, Refunding, 5.00%,
03/01/01................................... 1,000,000 1,014,367 1,027,500
Aa/AA- Catawba County UTGO, 4.60%, 05/01/03......... 1,000,000 1,004,377 1,008,750
Aa/AA- Catawba County UTGO, 4.60%, 06/01/05......... 1,000,000 982,464 998,750
Aaa/AAA Charlotte Convention Facility Project COPS,
(AMBAC), 6.55%, 12/01/02................... 1,000,000 1,060,494 1,108,750
Aa/AA Charlotte Mecklenberg Hospital Authority
Health Care System Revenue,
5.20%, 01/01/97............................ 200,000 200,811 203,000
Aa/AA Charlotte Mecklenberg Hospital Authority
Health Care System Revenue,
6.00%, 01/01/04............................ 1,000,000 996,716 1,073,750
Aaa/AAA Cleveland County UTGO, (FGIC),
5.10%, 06/01/07............................ 1,000,000 1,000,000 993,750
Aaa/AAA Concord Utility System Revenue, (MBIA),
4.80%, 12/01/03............................ 500,000 500,000 504,375
Aaa/AAA Concord Utility System Revenue, (MBIA),
4.90%, 12/01/04............................ 500,000 500,000 505,000
Aaa/AAA Cumberland County Civic Center Project,
Series A, COPS, (AMBAC), 6.20%, 12/01/07... 1,535,000 1,550,833 1,673,150
Aaa/AAA Durham County UTGO, 5.40%, 02/01/99.......... 1,200,000 1,224,482 1,243,500
Aaa/AAA Durham & Wake Counties Special Airport
District UTGO, Refunding, 5.75%,
04/01/00................................... 300,000 309,599 317,250
Aa1/AAA Durham UTGO, Revenue, 5.80%, 02/01/03........ 750,000 772,218 807,188
Aaa/AAA Fayetteville Public Works, Series A, Revenue,
(AMBAC), 5.15%, 03/01/07................... 500,000 493,640 505,625
Aaa/AAA Fayetteville Public Works, Series A, Revenue,
(AMBAC), 5.25%, 03/01/08................... 1,280,000 1,274,161 1,299,200
Aa1/AA+ Forsyth County Public Improvement UTGO,
5.60%, 08/01/09............................ 1,000,000 1,009,446 1,036,250
Aaa/AAA Gaston County UTGO, (MBIA),
5.70%, 03/01/04............................ 850,000 863,993 913,750
Aaa/AAA Gaston County UTGO, (MBIA),
5.70%, 03/01/05............................ 1,000,000 1,032,813 1,075,000
Aaa/AAA Gastonia County UTGO, (FGIC), 5.20%,
04/01/01................................... 700,000 699,260 726,250
Aa1/AAA Greensboro Public Improvement, Series B,
UTGO, 5.40%, 04/01/04...................... 1,000,000 996,460 1,047,500
Aa/AA- Greenville Sanitation & Sewer UTGO, Revenue,
4.80%, 03/01/06............................ 600,000 599,250 592,500
Aa1/AA+ Guilford County UTGO, 4.90%, 04/01/01........ 1,000,000 1,023,738 1,025,000
Aaa/AAA Mecklenberg County UTGO, 5.20%, 03/01/99..... 500,000 504,509 515,625
Aaa/AAA Mecklenberg County Public Improvement UTGO,
5.40%, 04/01/01............................ 500,000 508,142 525,000
Aaa/AAA Morganton Water & Sewer UTGO, Revenue,
(FGIC), 5.60%, 06/01/08.................... 900,000 916,232 942,750
Aa/A+ New Hanover County Solid Waste UTGO,
Refunding, 4.80%, 09/01/07................. 1,000,000 960,924 970,000
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
CENTURA FUNDS, INC.
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL MARKET
RATINGS* AMOUNT COST VALUE
- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
NORTH CAROLINA MUNICIPAL OBLIGATIONS -- (CONTINUED)
Aaa/AAA North Carolina Municipal Power Agency #1,
Catawba Electric Revenue, (MBIA), 5.25%,
01/01/09................................... $1,500,000 $ 1,415,610 $ 1,470,000
Aaa/AAA North Carolina Capital Improvement, Series A,
UTGO, 4.70%, 02/01/02...................... 1,000,000 988,610 1,011,250
Aaa/AAA North Carolina Capital Improvement, Series A,
UTGO, 4.70%, 02/01/04...................... 950,000 947,005 952,375
A1/A+ Onslow County UTGO, 5.60%, 03/01/05.......... 1,000,000 1,021,715 1,051,250
Aa1/AA+ Orange County UTGO, Refunding, 5.10%,
06/01/03................................... 1,050,000 1,053,175 1,092,000
Aaa/AAA Piedmont Triad Airport Authority, Airport
Revenue, Refunding Series A, (MBIA), 6.50%,
07/01/01................................... 1,000,000 1,077,963 1,098,750
Aa/AA- Pitt County UTGO, Refunding,
5.10%, 02/01/06............................ 1,000,000 1,011,924 1,018,750
Aa/AA- Pitt County Memorial Hospital Revenue,
5.375%, 12/01/10........................... 1,500,000 1,477,922 1,494,375
Aaa/AAA Raleigh UTGO, 6.40%, 03/01/02................ 1,250,000 1,359,736 1,379,688
A1/A+ Union County NC, UTGO, 6.50%, 04/01/07....... 1,500,000 1,635,575 1,620,000
Aaa/AAA Wake County UTGO, Refunding, 4.20%,
04/01/00................................... 500,000 495,220 498,125
Aaa/AAA Wake County UTGO, Refunding, 4.30%,
02/01/02................................... 1,250,000 1,168,265 1,239,061
Aaa/AAA Wake County Hospital Revenue, (MBIA),
4.50%, 10/01/03............................ 1,200,000 1,124,105 1,167,000
A/A Wilkes County UTGO, Refunding, 5.20%,
06/01/05................................... 1,275,000 1,275,000 1,295,718
Aa/AA+ Winston-Salem Water & Sewer System, Revenue,
6.30%, 06/01/06............................ 1,000,000 1,089,394 1,088,750
----------- -----------
TOTAL MUNICIPAL OBLIGATIONS.................. 39,492,330 40,469,745
----------- -----------
MONEY MARKET FUND -- 1.1%
Institutional Liquid Assets Tax Exempt
Fund....................................... 218,846 218,846 218,846
North Carolina Municipal Money Market Fund... 252,213 252,213 252,213
----------- -----------
TOTAL MONEY MARKET FUNDS..................... 471,059 471,059
----------- -----------
TOTAL INVESTMENTS -- 99.0%................... $39,963,389+ $40,940,804
============
ASSETS IN EXCESS OF OTHER
LIABILITIES -- 1.0%........................ 408,299
-----------
NET ASSETS -- 100.0%......................... $41,349,103
============
</TABLE>
- ---------------
* See page 9 for Credit Ratings.
+ The cost for federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
8
<PAGE> 9
CENTURA FUNDS, INC.
FOOTNOTES TO PORTFOLIOS -- (UNAUDITED)
OCTOBER 31, 1995
* Credit Ratings (unaudited) given by Moody's Investors Service Inc. and
Standard & Poor's Corporation.
<TABLE>
<CAPTION>
MOODY'S STANDARD & POOR'S
------- -----------------
<C> <C> <S>
Aaa AAA Instrument judged to be of the highest quality and carrying
the smallest amount of investment risk.
Aa AA Instrument judged to be of high quality by all standards.
A A- Instrument judged to be adequate by all standards.
NR NR Not Rated. In the opinion of the Investment Adviser,
instrument judged to be of comparable investment quality to
rated securities which may be purchased by the Fund.
</TABLE>
Items which possess the strongest investment attributes of their category are
given that letter rating followed by a number. Moody's applies numerical
modifiers to designate relative standing within the generic ratings categories.
The Standard & Poor's ratings may be modified by the addition of a plus or minus
sign to show relative standing within the major rating categories.
ABBREVIATIONS USED IN THE PORTFOLIOS:
<TABLE>
<S> <C>
AMBAC....................... American Municipal Bond Assurance Corporation
COPS........................ Certificates of Participation
FGIC........................ Financial Guaranty Insurance Corporation
GO.......................... General Obligation
MBIA........................ Municipal Bond Insurance Association
UTGO........................ Unlimited Tax General Obligation
</TABLE>
Investment percentages shown are calculated as a percentage of net assets.
Institutions shown in parenthesis have entered into credit support agreement
with the issuer.
See accompanying notes to financial statements.
9
<PAGE> 10
CENTURA FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- (UNAUDITED)
OCTOBER 31, 1995
<TABLE>
<CAPTION>
CENTURA CENTURA CENTURA
EQUITY GROWTH FEDERAL SECURITIES NORTH CAROLINA
FUND INCOME FUND TAX-FREE BOND FUND
------------- ------------------ ------------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost -- $92,695,374, $101,078,982, and
$39,963,389, respectively) (Note 2a).................. $ 109,126,689 $ 103,785,860 $ 40,940,804
Cash.................................................... 112,476 -- --
Dividends and interest receivable....................... 68,431 1,505,201 546,524
Receivable for Fund shares sold......................... 381,103 56,000 8,000
Unamortized organization cost (Note 2e)................. 26,403 34,920 11,640
Receivable from adviser................................. -- -- 15,367
Prepaid expenses........................................ 4,497 3,693 6,536
------------- ------------------ ------------------
Total Assets........................................ 109,719,599 105,385,674 41,528,871
------------- ------------------ ------------------
LIABILITIES:
Payable for Fund shares purchased....................... -- 25,149 100
Payable to custodian for Fund disbursements............. -- 568,214 125,710
Investment advisory fee payable......................... 64,808 26,518 --
Administration fee payable.............................. 13,888 13,259 --
Transfer agency fee payable............................. 6,209 1,851 1,670
12B-1 Distribution fee payable.......................... 3,103 225 672
Accrued expenses and other expenses..................... 68,058 78,544 51,616
------------- ------------------ ------------------
Total Liabilities................................... 156,066 713,760 179,768
------------- ------------------ ------------------
NET ASSETS.............................................. $ 109,563,533 $ 104,671,914 $ 41,349,103
============= ============= ============
NET ASSETS:
Shares of beneficial interest outstanding
(par value $.001 per share)
450,000,000 shares authorized (Note 9).............. $ 9,188 $ 10,210 $ 4,019
Additional paid-in capital............................ 92,720,408 101,996,020 40,074,116
Over-distributed net investment income................ (27,550) -- --
Accumulated net realized capital gain/(loss) on
investments......................................... 430,172 (41,194) 293,553
Net unrealized appreciation on investments (Note 7)... 16,431,315 2,706,878 977,415
------------- ------------------ ------------------
$ 109,563,533 $ 104,671,914 $ 41,349,103
============= ============= ============
CLASS A:
Net Assets............................................ $ 2,780,505 $ 348,881 $ 2,239,784
Shares Outstanding.................................... 233,010 34,040 217,685
Net Asset Value Per Share............................. $11.93 $10.25 $10.29
------ ------ ------
------ ------ ------
Maximum Offering Price Per Share ($11.93/.955,
$10.25/.9725 and $10.29/.9725, respectively)........ $12.49 $10.54 $10.58
------ ------ ------
------ ------ ------
CLASS B:
Net Assets............................................ $ 3,183,667 $ 170,047 $ 319,784
Shares Outstanding.................................... 267,753 16,593 31,090
Net Asset Value Per Share............................. $11.89 $10.25 $10.29
------ ------ ------
------ ------ ------
CLASS C:
Net Assets............................................ $ 103,599,361 $ 104,152,986 $ 38,789,535
Shares Outstanding.................................... 8,687,382 10,159,782 3,770,443
Net Asset Value Per Share............................. $11.93 $10.25 $10.29
------ ------ ------
------ ------ ------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
CENTURA FUNDS, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED OCTOBER 31, 1995
<TABLE>
<CAPTION>
CENTURA
CENTURA CENTURA NORTH
EQUITY FEDERAL CAROLINA
GROWTH SECURITIES TAX-FREE
FUND INCOME FUND BOND FUND
----------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest........................................ $ 230,744 $3,277,439 $ 925,852
Dividends....................................... 591,518 -- --
----------- ----------- ----------
Total income................................. 822,262 3,277,439 925,852
----------- ----------- ----------
EXPENSES:
Advisory (Note 3)............................... 357,660 150,075 66,987
Administrative services (Note 4)................ 76,641 75,037 28,709
Fund accounting (Note 5)........................ 16,341 16,948 20,377
Registration.................................... 15,138 17,123 7,378
Custodian (Note 5).............................. 12,757 11,770 6,118
Reports to shareholders......................... 9,935 10,312 4,842
Audit........................................... 6,367 7,800 2,730
Shareholder services (Note 5)................... 17,694 3,429 3,014
Directors fees & expenses....................... 3,739 3,739 3,739
Legal........................................... 6,844 6,846 2,948
Insurance....................................... 4,284 4,806 1,811
Amortization of organization expenses........... 3,713 4,913 1,638
12B-1 Distribution fee-class A (Note 5)......... 2,195 358 1,974
12B-1 Distribution fee-class B (Note 5)......... 11,531 838 1,389
Miscellaneous................................... 40,036 31,777 29,579
----------- ----------- ----------
Total expenses before waivers................ 584,875 345,771 183,233
Less: Expenses waived by
Adviser/Administrator (Notes 3 and 4)...... -- -- (95,696)
----------- ----------- ----------
Net expenses.................................... 584,875 345,771 87,537
----------- ----------- ----------
Net investment income (Note 2d)................... 237,387 2,931,668 838,315
----------- ----------- ----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS:
Net realized gain on investments................ 2,532,141 224,140 431,237
Net change in unrealized appreciation on
investments (Note 7)......................... 7,753,501 2,500,089 745,110
----------- ----------- ----------
Net realized and unrealized gains on
investments.................................. 10,285,642 2,724,229 1,176,347
----------- ----------- ----------
Net increase in net assets resulting
from operations................................. $10,523,029 $5,655,897 $2,014,662
========== ========== =========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
CENTURA FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (UNAUDITED)
<TABLE>
<CAPTION>
CENTURA FEDERAL SECURITIES
CENTURA EQUITY GROWTH FUND INCOME FUND
---------------------------------- ----------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS JUNE 1, 1994* MONTHS JUNE 1, 1994*
ENDED THROUGH ENDED THROUGH
OCTOBER 31, 1995 APRIL 30, 1995 OCTOBER 31, 1995 APRIL 30, 1995
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Net investment income......... $ 237,387 $ 515,377 $ 2,931,668 $ 4,728,278
Net realized gain/(loss) on
investments................. 2,532,141 (2,101,969) 224,140 (265,334)
Net change in unrealized
depreciation on
investments................. 7,753,501 8,677,814 2,500,089 206,789
------------ ----------- ------------ ------------
Net increase in net assets
resulting from operations..... 10,523,029 7,091,222 5,655,897 4,669,733
------------ ----------- ------------ ------------
DISTRIBUTIONS FROM NET
INVESTMENT INCOME:
Class A..................... (2,931) (4,155) (7,960) (9,413)
Class B..................... (12) (2,648) (4,047) (2,099)
Class C..................... (261,994) (508,706) (2,919,661) (4,716,766)
------------ ----------- ------------ ------------
Total distributions from net
investment income (Note
2d)......................... (264,937) (515,509) (2,931,668) (4,728,278)
------------ ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares:
Class A..................... 1,684,900 1,039,671 108,658 247,553
Class B..................... 1,682,862 1,363,221 63,916 104,640
Class C..................... 17,921,044 87,017,254 13,552,315 102,532,024
------------ ----------- ------------ ------------
Total proceeds from sales of
shares...................... 21,288,806 89,420,146 13,724,889 102,884,217
------------ ----------- ------------ ------------
Proceeds of shares issued in
reinvestment of dividends:
Class A..................... 2,902 4,155 7,941 9,387
Class B..................... 11 2,648 3,994 2,097
Class C..................... 189,338 398,366 1,704,230 2,763,205
------------ ----------- ------------ ------------
Total proceeds of shares
issued in reinvestment of
dividends................... 192,251 405,169 1,716,165 2,774,689
------------ ----------- ------------ ------------
Cost of shares redeemed:
Class A..................... (16,236) (171,707) (22,238) (21,587)
Class B..................... (41,478) (127,493) (20,487) --
Class C..................... (8,452,030) (9,801,033) (7,623,101) (11,439,650)
------------ ----------- ------------ ------------
Total cost of shares
redeemed.................... (8,509,744) (10,100,233) (7,665,826) (11,461,237)
------------ ----------- ------------ ------------
Net increase in net assets from
capital share transactions
(Note 8)...................... 12,971,313 79,725,082 7,775,228 94,197,669
------------ ----------- ------------ ------------
Total increase in net
assets...................... 23,229,405 86,300,795 10,499,457 94,139,124
NET ASSETS:
Beginning of period........... 86,334,128 33,333 94,172,457 33,333
------------ ----------- ------------ ------------
End of period+................ $109,563,533 $ 86,334,128 $104,671,914 $ 94,172,457
============ =========== ============ ============
</TABLE>
+ Net assets at October 31, 1995 and April 30, 1995, for the Centura Equity
Growth Fund include overdistributed net investment income of $27,550 and $132,
respectively.
* Fund commenced investment operations on June 1, 1994.
See accompanying notes to financial statements.
12
<PAGE> 13
CENTURA FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS -- (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
CENTURA
NORTH CAROLINA
TAX-FREE BOND FUND
------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS JUNE 1, 1994*
ENDED THROUGH
OCTOBER 31, 1995 APRIL 30, 1995
----------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income...................................... $ 838,315 $ 1,299,735
Net realized gain/(loss) on investments.................... 431,237 (137,684)
Net change in unrealized depreciation on investments....... 745,110 232,305
----------- -----------
Net increase in net assets resulting
from operations............................................ 2,014,662 1,394,356
----------- -----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME:
Class A.................................................. (31,764) (18,457)
Class B.................................................. (5,062) (8,666)
Class C.................................................. (801,489) (1,272,612)
----------- -----------
Total distributions from net
investment income (Note 2d).............................. (838,315) (1,299,735)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares:
Class A.................................................. 1,768,864 759,168
Class B.................................................. 137,724 280,551
Class C.................................................. 8,639,090 43,283,109
----------- -----------
Total proceeds from sales of shares........................ 10,545,678 44,322,828
----------- -----------
Proceeds of shares issued in
reinvestment of dividends:
Class A.................................................. 31,764 16,577
Class B.................................................. 2,284 2,959
Class C.................................................. 14,371 53,208
----------- -----------
Total proceeds of shares issued in
reinvestment of dividends................................ 48,419 72,744
----------- -----------
Cost of shares redeemed:
Class A.................................................. (27,314) (351,699)
Class B.................................................. (104,505) (20,586)
Class C.................................................. (5,878,297) (8,562,467)
----------- -----------
Total cost of shares redeemed.............................. (6,010,116) (8,934,752)
----------- -----------
Net increase in net assets from
capital share transactions (Note 8)........................ 4,583,981 35,460,820
----------- -----------
Total increase in net assets............................... 5,760,328 35,555,441
NET ASSETS:
Beginning of period........................................ 35,588,775 33,334
----------- -----------
End of period.............................................. $41,349,103 $35,588,775
=========== ===========
</TABLE>
* Fund commenced investment operations on June 1, 1994.
See accompanying notes to financial statements.
13
<PAGE> 14
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (UNAUDITED)
OCTOBER 31, 1995
1. DESCRIPTION -- Centura Funds, Inc. (the "Company") is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company, organized under the laws of the State of Maryland on March
1, 1994. The company currently consists of three separate investment portfolios:
Centura Equity Growth Fund, Centura Federal Securities Income Fund, and Centura
North Carolina Tax-Free Bond Fund (collectively, the "Funds"). The Funds
commenced operations on June 1, 1994, and prior to that date had no operations
other than organization matters.
The Funds each have three classes of shares known as Class A, Class B and
Class C. Class A shares are offered with a maximum front-end sales charge of
4.50% for the Centura Equity Growth Fund, 2.75% for the Centura Federal
Securities Income Fund and 2.75% for the Centura North Carolina Tax-Free Bond
Fund. Class B shares are offered with a contingent deferred sales charge
("CDSC") declining from a maximum in the first year after purchase of 4.50% for
Centura Equity Growth Fund and 2.75% for each of the other Funds to a minimum in
the fifth year after purchase of 0.90% for Centura Equity Growth Fund and 0.55%
for each of the other Funds. This charge is imposed if shareholders redeem their
shares within five years from the date of purchase. The CDSC is waived in
certain cases. On the seventh anniversary of their purchase date, Class B shares
convert automatically to Class A shares, which bear a lower Service and
Distribution Fee. The front-end sales charge is not applied to certain
categories of investors in Class A shares. Class C shares are offered to
accounts managed by the Adviser's Trust Department and to non-profit
Institutions who invest at least $100,000, and there is no sales charge or
contingent deferred sales charge imposed on this Class.
2. SIGNIFICANT ACCOUNTING POLICIES -- The following is a summary of the
significant accounting policies followed by the Funds:
a. Security Valuation Securities listed on an exchange are valued on the
basis of the last sale prior to the time the valuation is made. If there has
been no sale since the immediately previous valuation, then the current bid
price is used. Quotations are taken from the exchange where the security is
primarily traded. Over-the-counter securities are valued on the basis of the bid
price at the close of business on each business day. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by or at the direction of the Board of Directors. Notwithstanding the
above, bonds and other fixed-income securities are valued by using market
quotations and may be valued on the basis of prices provided by a pricing
service approved by the Board of Directors. Short-term securities with remaining
maturities of 60 days or less are valued at amortized cost.
b. Investment Transactions Transactions are recorded on the trade date.
Identified cost of investments sold is used for both financial statement and
Federal income tax purposes. Interest income, including the amortization of
discount or premium, is recorded as accrued. Dividends are recorded on the
ex-dividend date.
c. Federal Income Taxes Each Fund's policy is to qualify as a "regulated
investment company" under Subchapter M of the Internal Revenue Code of 1986, as
amended. By so
14
<PAGE> 15
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1995
qualifying, the Funds will not be subject to Federal income taxes to the extent
that they distribute taxable and tax-exempt income for their fiscal year. The
Funds also intend to meet the distribution requirements to avoid the payment of
an excise tax.
d. Dividends To Shareholders Centura Equity Growth Fund declares and pays
dividends of substantially all of its net investment income monthly. Centura
Federal Securities Income Fund and Centura North Carolina Tax-Free Bond Fund
declare dividends of substantially all of their net investment income daily and
pay those dividends monthly. Each Fund will distribute, at least annually,
substantially all net capital gains, if any, earned by such Fund. Distributions
to shareholders are recorded on the ex-dividend date. The amount of dividends
and distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains.
e. Organization Expenses Costs incurred in connection with the
organization and initial registration of the Company, which have been allocated
among the Funds, have been deferred and are being amortized over a sixty-month
period, beginning with each Fund's commencement of operations.
f. Determination of Net Asset Value and Allocation of Expenses Expenses
directly attributable to a Fund are charged to that Fund; other expenses are
allocated proportionately among each Fund within the Company in relation to the
net assets of each Fund or on another reasonable basis. In calculating net asset
value per share of each class, investment income, realized and unrealized gains
and losses and expenses other than class specific expenses, are allocated daily
to each class of shares based upon the proportion of net assets of each class at
the beginning of each day. Class specific expenses, as determined under
applicable law and regulatory policy, are borne by the class incurring the
expense.
3. ADVISER -- Centura Bank is the Fund's Adviser.
Pursuant to the Advisory Contracts, the Adviser manages the investments of
the Funds and continuously reviews, supervises and administers the Funds'
investments. The Adviser is responsible for placing orders for the purchase and
sale of investment securities directly with brokers and dealers selected at its
discretion. The terms of the Advisory Contracts provide for annual fees at the
following percentages of average daily net assets:
Centura Equity Growth Fund, 0.70% of average daily net assets
Centura Federal Securities Income Fund, 0.30% of average daily net assets
Centura North Carolina Tax-Free Bond Fund, 0.35% of average daily net assets
15
<PAGE> 16
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1995
For the six months ended October 31, 1995, Centura Bank was entitled to and
voluntarily waived advisory fees as listed below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- -------
<S> <C> <C>
Centura Equity Growth Fund........................................ $357,660 --
Centura Federal Securities Income Fund............................ 150,075 --
Centura North Carolina Tax-Free Bond Fund......................... 66,987 $66,987
</TABLE>
4. ADMINISTRATOR -- The Funds have entered into Administrative Services
Contracts with Furman Selz Incorporated ("Furman Selz"). Furman Selz provides
management and administrative services necessary for the operations of the
Funds, furnishes office space and facilities required to conduct the business of
the Funds and pays the compensation of the Company's officers affiliated with
Furman Selz. The terms of the Administrative Services Contracts provide for
annual fees of 0.15% of average daily net assets of each Fund.
For the six months ended October 31, 1995, Furman Selz was entitled to
administrative services fees as listed below:
<TABLE>
<CAPTION>
FURMAN FURMAN
SELZ SELZ
ENTITLED WAIVED
-------- -------
<S> <C> <C>
Centura Equity Growth Fund......................................... $ 76,641 --
Centura Federal Securities Income Fund............................. 75,037 --
Centura North Carolina Tax-Free Bond Fund.......................... 28,709 $28,709
</TABLE>
5. OTHER TRANSACTIONS WITH AFFILIATES -- Furman Selz is transfer agent for
the Funds. Under a Transfer Agency Agreement, Furman Selz provides personnel and
facilities to perform shareholder servicing and transfer agency related
services. Furman Selz receives a per account fee and reimbursement for out of
pocket expenses in connection with shareholder servicing. For the six months
ended October 31, 1995, Furman Selz earned transfer agent fees and out-of-pocket
expenses of $17,694, $3,429 and $3,014 for the Equity Growth Fund, Federal
Securities Income Fund and North Carolina Tax-Free Bond Fund, respectively.
Furman Selz also provides fund accounting services to the Funds. The Funds
each pay $2,500 per month to Furman Selz for performing fund accounting. Furman
Selz is also reimbursed for out of pocket expenses relating to fund accounting.
For the six months ended October 31, 1995, Furman Selz earned $16,341 for the
Equity Growth Fund, $16,948 for the Federal Securities Income Fund and $20,377
for the North Carolina Tax-Free Bond Fund.
Centura Funds Distributor, Inc. acts as the Funds' Distributor. The
Distributor is an affiliate of the Funds' Administrator, Furman Selz
Incorporated ("Furman Selz"), and was formed specifically to distribute the
Funds. (See "The Administrator".)
Each of the Funds has adopted a service and distribution plan ("Plan") with
respect to its Class A and Class B shares. The Plans provide that each class of
shares will pay the Distributor a fee calculated as a percentage of the value of
average daily net assets of that class as
16
<PAGE> 17
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1995
reimbursement for its costs incurred in financing certain distribution and
shareholder service activities related to that class.
CLASS A PLAN. The Class A Plan provides for payments by each Fund to the
Distributor at an annual rate not to exceed 0.50% of the Fund's average net
assets attributable to its Class A shares. Such fees may include a Service Fee
totalling up to 0.25% of the average annual net assets attributable to a Fund's
Class A shares. Service Fees are paid to securities dealers and other financial
institutions for maintaining shareholder accounts and providing related services
to shareholders. During the current fiscal year the Adviser has undertaken to
limit 12b-1 fees for Class A shares to 0.25%. For the six months ended October
31, 1995, Centura Funds Distributor, Inc. earned distribution fees for Class A
of $2,195, $358 and $1,974 for the Equity Growth Fund, Federal Securities Income
Fund and North Carolina Tax-Free Bond Fund, respectively. In addition, the
Distributor also retains a portion of the front-end sales charge.
CLASS B PLAN. The Class B Plan provides for payments by the Fund to the
Distributor at an annual rate not to exceed 1.00% of the Fund's average net
assets attributable to its Class B shares. Such fees may include a Service Fee
totalling up to 0.25% of the average annual net assets attributable to a Fund's
Class B shares. For the six months ended October 31, 1995, Centura Funds
Distributor, Inc. earned distribution fees for Class B of $11,531, $838 and
$1,389 for the Equity Growth Fund, Federal Securities Income Fund and North
Carolina Tax-Free Bond Fund, respectively. The Distributor also receives the
proceeds of any CDSC imposed on redemptions of Class B shares.
Centura Bank acts as custodian for the Funds. For furnishing custodial
services, Centura Bank is paid a monthly fee with respect to the Funds at an
annual rate based on a percentage of average daily net assets plus certain
transaction and out-of-pocket expenses. For the six months ended October 31,
1995, Centura Bank earned custodian fees and out-of-pocket expenses of $12,757,
$11,770 and $6,118 for the Equity Growth Fund, Federal Securities Income Fund
and North Carolina Tax-Free Bond Fund, respectively.
6. CONCENTRATION OF CREDIT RISK -- The Centura North Carolina Tax-Free Bond
Fund invests substantially all of its assets in a varied portfolio of debt
obligations issued by the State of North Carolina and its authorities and
agencies. The issuers' abilities to meet their obligations may be affected by
economic or political developments in the State of North Carolina.
17
<PAGE> 18
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1995
7. SECURITY TRANSACTIONS -- The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the six months ended
October 31, 1995 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
COMMON STOCKS AND BONDS OBLIGATIONS
---------------------------- ------------------------------
COST OF PROCEEDS FROM COST OF PROCEEDS FROM
SECURITIES SECURITIES SECURITIES SECURITIES
PURCHASED SOLD PURCHASED SOLD
----------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Centura Equity Growth Fund........ $44,361,563 $30,632,595 -- --
Centura Federal Securities Income
Fund............................ -- -- $ 24,460,313 $19,990,305
Centura North Carolina Tax-Free
Bond Fund....................... 22,836,347 18,233,198 -- --
</TABLE>
Unrealized appreciation and depreciation at October 31, 1995, based on cost
of securities for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ -------------
<S> <C> <C> <C>
Centura Equity Growth Fund.................... $ 18,987,666 $ (2,556,351) $16,431,315
Centura Federal Securities Income Fund........ 2,706,878 0 2,706,878
Centura North Carolina Tax-Free Bond Fund..... 1,006,635 (29,220) 977,415
</TABLE>
8. FEDERAL INCOME TAXES -- At April 30, 1995, the Equity Growth Fund,
Federal Securities Income Fund and North Carolina Tax Free Bond Fund had net
capital loss carryovers of approximately $1,456,300, $43,600 and $15,400,
respectively, which will be available through April 2003 to offset future
capital gains as provided by the regulations. To the extent that these carryover
losses are used to offset future capital gains, the gains so offset would not be
distributed to shareholders.
18
<PAGE> 19
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
OCTOBER 31, 1995
9. CAPITAL SHARE TRANSACTIONS -- The Company is authorized to issue 450
million shares of capital stock with a par value of $.001. Transactions in
shares of the Funds for the six months ended October 31, 1995 and the period
ended April 30, 1995, respectively were as follows:
<TABLE>
<CAPTION>
CENTURA EQUITY GROWTH FUND CENTURA EQUITY GROWTH FUND
------------------------------ ------------------------------
FOR THE PERIOD
FOR SIX MONTHS JUNE 1, 1994*
ENDED THROUGH
OCTOBER 31, 1995 APRIL 30, 1995
------------------------------ ------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------- ------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Beginning Balance..................... 90,488 127,357 7,847,477 1,111 1,111 1,111
------- ------- ---------- ------- ------- ----------
Shares sold........................... 143,575 144,012 1,534,988 106,840 138,458 8,813,192
Shares issued in reinvestment of
dividends from net investment
income.............................. 255 1 16,367 413 318 39,707
Shares redeemed....................... (1,308) (3,617) (711,450) (17,876) (12,530) (1,006,533)
------- ------- ---------- ------- ------- ----------
Net increase in shares................ 142,522 140,396 839,905 89,377 126,246 7,846,366
------- ------- ---------- ------- ------- ----------
Closing Balance.............. 233,010 267,753 8,687,382 90,488 127,357 7,847,477
======== ======== ========== ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
CENTURA FEDERAL SECURITIES CENTURA FEDERAL SECURITIES
INCOME FUND INCOME FUND
------------------------------ ------------------------------
FOR THE PERIOD
FOR SIX MONTHS JUNE 1, 1994*
ENDED THROUGH
OCTOBER 31, 1995 APRIL 30, 1995
------------------------------ ------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------- ------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Beginning Balance..................... 24,778 11,869 9,409,781 1,111 1,111 1,111
------- ------- ---------- ------- ------- ----------
Shares sold........................... 10,660 6,332 1,334,395 24,889 10,545 10,288,015
Shares issued in reinvestment of
dividends from net investment
income.............................. 780 392 167,343 951 213 279,771
Shares redeemed....................... (2,178) (2,000) (751,737) (2,173) 0 (1,159,116)
------- ------- ---------- ------- ------- ----------
Net increase in shares................ 9,262 4,724 750,001 23,667 10,758 9,408,670
------- ------- ---------- ------- ------- ----------
Closing Balance.............. 34,040 16,593 10,159,782 24,778 11,869 9,409,781
======== ======== ========== ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
CENTURA NORTH CAROLINA CENTURA NORTH CAROLINA
TAX-FREE BOND FUND TAX-FREE BOND FUND
------------------------------ ------------------------------
FOR THE PERIOD
FOR SIX MONTHS JUNE 1, 1994*
ENDED THROUGH
OCTOBER 31, 1995 APRIL 30, 1995
------------------------------ ------------------------------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C
------- ------- ---------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Beginning Balance..................... 42,947 27,561 3,495,234 1,111 1,111 1,112
------- ------- ---------- ------- ------- ----------
Shares sold........................... 174,307 13,484 850,896 76,112 28,313 4,357,097
Shares issued in reinvestment of
dividends from net investment
income.............................. 3,114 223 1,408 1,686 302 5,402
Shares redeemed....................... (2,683) (10,178) (577,095) (35,962) (2,165) (868,377)
------- ------- ---------- ------- ------- ----------
Net increase in shares................ 174,738 3,529 275,209 41,836 26,450 3,494,122
------- ------- ---------- ------- ------- ----------
Closing Balance.............. 217,685 31,090 3,770,443 42,947 27,561 3,495,234
======== ======== ========== ======== ======== ==========
</TABLE>
* Fund commenced investment operations on June 1, 1994.
19
<PAGE> 20
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CENTURA CENTURA
EQUITY GROWTH FEDERAL SECURITIES
FUND INCOME FUND
------------------------------------------------------- -------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
OCTOBER 31, 1995 APRIL 30, 1995 OCTOBER 31, 1995 APRIL 30, 1995
-------------------------- ------------------------- -------------------------- -------------------------
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
A B C A B CLASS C A B C A B CLASS C
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset
Value,
Beginning of
Period....... $10.70 $10.69 $ 10.70 $10.00 $10.00 $ 10.00 $ 9.97 $ 9.97 $ 9.97 $10.00 $10.00 $ 10.00
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Income from
Investment
Operations:
Net
Investment
Income/(Loss)... 0.02 (0.03) 0.03 0.06 0.03 0.07 0.29 0.25 0.30 0.52 0.45 0.54
Net Realized
and
Unrealized
Loss on
Securities... 1.23 1.23 1.23 0.70 0.69 0.70 0.28 0.28 0.28 (0.03) (0.03) (0.03)
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Total from
Investment
Operations... 1.25 1.20 1.26 0.76 0.72 0.77 0.57 0.53 0.58 0.49 0.42 0.51
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Less
Distributions:
Dividends
from Net
Investment
Income..... (0.02) -- (0.03) (0.06) (0.03) (0.07) (0.29) (0.25) (0.30) (0.52) (0.45) (0.54)
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Net Asset
Value, End of
Period....... $11.93 $11.89 $ 11.93 $10.70 $10.69 $ 10.70 $10.25 $10.25 $ 10.25 $ 9.97 $ 9.97 $ 9.97
======= ======= ========= ======= ======= ======== ======= ======= ========= ======= ======= ========
Total Return
(not
reflecting
sales
load)........ 10.19% 9.69% 10.17% 7.64% 7.23% 7.71% 3.07% 2.74% 3.18% 5.02% 4.32% 5.28%
======= ======= ========= ======= ======= ======== ======= ======= ========= ======= ======= ========
Ratios/Supplemental
Data:
Net Assets,
End of
Period
(000's).... $2,781 $3,184 $103,599 $ 968 $1,362 $84,004 $ 349 $ 170 $104,153 $ 247 $ 118 $93,807
Ratio of
Expenses to
Average Net
Assets*.... 1.37% 2.12% 1.12% 1.29% 2.03% 1.04% 0.94% 1.69% 0.69% 0.86% 1.61% 0.63%
Ratios of
Expenses
before
Waivers/Reimbursements
to Average
Net
Assets*.... 1.37% 2.12% 1.12% 1.32% 2.06% 1.07% 0.94% 1.69% 0.69% 0.89% 1.64% 0.66%
Ratio of Net
Investment
Income to
Average Net
Assets*.... 0.21% (0.54)% 0.49% 0.63% 0.00% 0.79% 5.60% 4.82% 5.88% 5.58% 4.86% 5.97%
Portfolio
Turnover
Rate......... 32% 32% 32% 44% 44% 44% 21% 21% 21% 42% 42% 42%
</TABLE>
* Annualized
20
<PAGE> 21
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (UNAUDITED) (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CENTURA
NORTH CAROLINA
TAX-FREE BOND FUND
---------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED
OCTOBER 31, 1995 APRIL 30, 1995
--------------------------------- ---------------------------------
CLASS CLASS CLASS CLASS
A B CLASS C A B CLASS C
------ ------ ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............ $ 9.98 $ 9.98 $ 9.98 $10.00 $10.00 $ 10.00
------ ------ ------- ------ ------ -------
Income from Investment Operations:
Net Investment Income/(Loss)................... 0.21 0.17 0.23 0.39 0.32 0.41
Net Realized and Unrealized Loss on
Securities................................... 0.31 0.31 0.31 (0.02) (0.02) (0.02)
------ ------ ------- ------ ------ -------
Total from Investment Operations............... 0.52 0.48 0.54 0.37 0.30 0.39
------ ------ ------- ------ ------ -------
Less Distributions:
Dividends from Net Investment Income........... (0.21) (0.17) (0.23) (0.39) (0.32) (0.41)
------ ------ ------- ------ ------ -------
Net Asset Value, End of Period.................. $10.29 $10.29 $ 10.29 $ 9.98 $ 9.98 $ 9.98
======= ======= ======== ======= ======= ========
Total Return (not reflecting sales load)........ 2.74% 2.42% 2.85% 3.77% 3.09% 4.08%
======= ======= ======== ======= ======= ========
Ratios/Supplemental Data:
Net Assets, End of Period (000's).............. $2,240 $ 320 $38,790 $ 429 $ 275 $34,885
Ratio of Expenses to
Average Net Assets*.......................... 0.68% 1.44% 0.44% 0.42% 0.99% 0.41%
Ratio of Expenses before Waivers/
Reimbursements to Average Net Assets*........ 1.19% 1.94% 0.94% 0.92% 1.49% 0.91%
Ratio of Net Investment Income to Average Net
Assets*...................................... 4.05% 3.40% 4.42% 4.46% 3.89% 4.64%
Portfolio Turnover Rate......................... 49% 49% 49% 121% 121% 121%
</TABLE>
* Annualized
21
<PAGE> 22
CENTURA FUNDS, INC.
CENTURA FUNDS, INC.
BOARD OF DIRECTORS AND OFFICERS
Leslie H. Garner, Jr.*
Chairman of the Board
James H. Speed, Jr.*
Director
Frederick E. Turnage*
Director
Lucy Hancock Bode+
Director
John J. Pileggi
Vice President and Treasurer
Joan V. Fiore
Secretary
Gordon M. Forrester
Assistant Treasurer
Sheryl Hirschfeld
Assistant Secretary
* Audit Committee Members
+ "Interested person" as that term is defined in the Investment Company Act of
1940.
<PAGE> 23
[CENTURA LOGO]
(C) 1994 CENTURA BANKS, INC.
FOR ADDITIONAL INFORMATION ON THE
CENTURA FUNDS, CALL
1-800-44-CENTURA
(800-442-3688).
INVESTMENT CENTURA BANK
ADVISER AND 131 NORTH CHURCH STREET
CUSTODIAN ROCKY MOUNT, NC 27802
ADMINISTRATOR FURMAN SELZ INCORPORATED
AND SPONSOR 230 PARK AVENUE
NEW YORK, NEW YORK 10169
CENTURA FUNDS DISTRIBUTOR, INC.
DISTRIBUTOR 230 PARK AVENUE
NEW YORK, NEW YORK 10169
DECHERT PRICE & RHOADS
COUNSEL 1500 K STREET, N.W.
WASHINGTON, D.C. 20005
THE FINANCIAL STATEMENTS INCLUDED HEREIN HAVE BEEN TAKEN FROM THE RECORDS OF
THE COMPANY WITHOUT EXAMINATION BY THE INDEPENDENT ACCOUNTANTS AND
ACCORDINGLY THEY DO NOT EXPRESS AN OPINION THEREON.
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF CENTURA FUNDS. ITS
USE IN CONNECTION WITH ANY OFFERING OF THE FUNDS' SHARES IS AUTHORIZED ONLY
IN CASE OF A CONCURRENT OR PRIOR DELIVERY OF THE FUNDS' CURRENT PROSPECTUS.
INVESTMENTS IN MUTUAL FUNDS INVOLVE RISK, INCLUDING POSSIBLE LOSS OF
PRINCIPAL. CENTURA FUNDS ARE NOT DEPOSITS, GUARANTEED BY OR OBLIGATIONS OF
CENTURA BANK OR ITS AFFILIATES AND ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY.
CNSA10-94
[GRAPHICS]
CENTURA FUNDS
CENTURA EQUITY
GROWTH FUND
CENTURA FEDERAL
SECURITIES INCOME
FUND
CENTURA NORTH
CAROLINA TAX-FREE
BOND FUND
SEMI-ANNUAL REPORT
OCTOBER 31, 1995
