<PAGE> 1
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
CENTURA FEDERAL SECURITIES INCOME FUND
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
June 17, 1996
Dear Shareholder,
The past twelve months have been positive ones for the Centura Funds family
as regards both performance and growth. We are grateful for your confidence and
support and are pleased to submit this April 30, 1996, year-end report for your
study. Addressed in these remarks are the Centura Equity Growth Fund, the
Centura Federal Securities Income Fund, and the Centura North Carolina Tax-Free
Bond Fund.
ECONOMIC/CAPITAL MARKETS COMMENTARY
During the twelve months which ended April 30, we experienced above
expectation equity performances and later, during calendar 1996, a reversal of
the lower interest rates experienced throughout calendar 1995. This divergence
of returns leaves us with considerable discomfort given existing economic and
political realities. Inflationary fears we feel have been overdone, the economy
continues to progress at an acceptable pace (in the eyes of the Federal Reserve)
and corporate earnings are not falling as precipitously as many have predicted.
Giving credit where due we attribute the near-full employment, moderate growth,
and low inflationary environment primarily to the Federal Reserve's leadership.
CENTURA EQUITY GROWTH FUND
As expressed above, the domestic equity markets (and our Fund) have been
largely unaffected by this year's (January - April 1996) backup in rates. The
Fund remains heavily invested in mid-cap stocks and its twelve month return
relative to both the S&P 500 and the S&P Mid Cap Indexes has been gratifying. As
regards industry sectors, we are heavily weighted in basic industries,
financials, technology, and capital goods-technology. The recent addition of two
biotech issues, though both are relatively small, highlights our optimism
towards this group taken as a whole. The three primary legs supporting equities,
1-) corporate share repurchases, 2-) massive inflows into equities by way of
mutual funds, and 3-) a reasonable level of interest rates, continue to suggest
reasonable upward pressure on equity markets.
CENTURA FEDERAL SECURITIES INCOME FUND
The past 12 months have been volatile for the bond market. We have seen the
30 year U.S. Treasury Bond go from the 7.30% range to 6% at year end 1995 and
back to the 7% area in April 1996. Due to the shorter maturities of the Federal
Securities Fund, we have not experienced commensurate volatility in price. We
strive to maintain the stability of the Fund using maturities no greater than 10
years. The Fund continues to be invested with a minimum of 70% in U.S.
Treasuries securities and the remainder in agencies. The total return YTD ending
4/30/96 was (Class C) 6.5%.
<PAGE> 2
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
In this the second year of the Fund's existence, we have continued to
experience some of the turbulence we went through the previous year. The fear of
inflation has provided the municipal markets with reason to seek higher rates on
new and existing holdings. We have continued to keep the average maturity the
same as last year, around eight years. The Fund continues to have an average
bond rating of Aa1 by Moody's Investment Service. The Fund's goal is to continue
its relative stable unit value while keeping the average life between five and
ten years with high quality bonds.
CAPITAL MARKET OUTLOOK
Having been pleasantly surprised with equity performance during the past
year, at this level we are somewhat cautious in the near-term while waiting for
fundamentals-earnings growth, interest rates, commodity prices, and equity money
flows to sort themselves out. Adding more difficulty to any outlook is the
confusion that election year politics injects. Increasingly, we expect the clash
of opposing philosophies as regards social security, a balanced budget, and an
aging population to influence markets. Regarding fixed income, we continue to
expect that rates can decline from current levels (30 year U.S. Treasury yield =
6.99%) though not likely to the 6% level we enjoyed in January. Longer term, we
feel that corporate equity repurchases, demographic trends funding equity
purchases, and a vibrant, but not overheated domestic economy, gives us much
enthusiasm as regards returns from both stocks and bonds.
We extend our gratitude for your patronage during the past year.
Sincerely,
/s/ D. CARLISLE WHITLOCK
- ---------------------------
D. Carlisle Whitlock
Senior Vice President &
Senior Trust Officer
Centura Bank
2
<PAGE> 3
EQUITY GROWTH FUND
A $10,000 investment in the Equity
Growth Fund, Class A, with a maximum
sales load of 4.50%, made on the
inception date would have increased
to $13,849 (as of April 30, 1996).
The graph on the right shows how this
compares to our benchmark over the
same period. Total return for the
life of the Fund was 38.49%,
reflecting the sales load. Without
the sales load, the return would have
been 45.01%. The S&P 500 represents
an unmanaged portfolio and does not
reflect the costs and expenses of
actually obtaining and managing the
underlying securities, nor does it
reflect a sales load.
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Class A S & P 500
<S> <C> <C>
6/1/94 9550.00 10000.00
7/94 9028.00 10075.00
10/94 9196.00 10461.00
1/95 9291.00 10494.00
4/95 10279.00 11555.00
7/95 11576.00 12701.00
10/95 11481.00 13223.00
1/96 12637.00 14548.00
4/96 13849.00 15042.00
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class A.................................. 28.65% 18.51%
S & P 500................................ 30.18% 23.76%
</TABLE>
A $10,000 investment in the Equity
Growth Fund, Class B, with a maximum
deferred sales load of 4.50%, made on
the inception date would have
increased to $13,695 (as of April 30,
1996). The graph on the right shows
how this compares to our benchmark
over the same period. Total return
for the life of the Fund was 36.95%,
reflecting the deferred sales load.
Without the deferred sales load, the
return would have been 43.40%. The
S&P 500 represents an unmanaged
portfolio and does not reflect the
costs and expenses of actually
obtaining and managing the underlying
securities, nor does it reflect a
sales load.
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Class B S & P 500
<S> <C> <C>
6/1/94 10000.00 10000.00
7/94 9457.00 10075.00
10/94 9682.00 10461.00
1/95 9770.00 10494.00
4/95 10784.00 11555.00
7/95 12119.00 12701.00
10/95 12000.00 13223.00
1/96 13183.00 14548.00
4/96 13695.00 15042.00
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class B.................................. 27.71% 17.84%
S & P 500................................ 30.18% 23.76%
</TABLE>
A $10,000 investment in the Equity
Growth Fund, Class C, made on the
inception date would have increased
to $14,538 (as of April 30, 1996).
The graph on the right shows how this
compares to our benchmark over the
same period. Total return for the
life of the Fund was 45.38%. The S&P
500 represents an unmanaged portfolio
and does not reflect the costs and
expenses of actually obtaining and
managing the underlying securities.
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) Class C S & P 500
<S> <C> <C>
6/1/94 10000.00 10000.00
7/94 9454.00 10075.00
10/94 9632.00 10461.00
1/95 9735.00 10494.00
4/95 10771.00 11555.00
7/95 12126.00 12701.00
10/95 12042.00 13223.00
1/96 13249.00 14548.00
4/96 14538.00 15042.00
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class C.................................. 34.97% 21.54%
S & P 500................................ 30.18% 23.76%
</TABLE>
3
<PAGE> 4
FEDERAL SECURITIES INCOME FUND
A $10,000 investment in the Federal
Securities Income Fund, Class A, with a
maximum sales load of 2.75%, made on
the inception date would have increased
to $10,847 (as of April 30, 1996). The
graph on the right shows how this
compares to our benchmark over the same
period. Total return for the life of
the Fund was 8.47%, reflecting the
sales load. Without the sales load, the
return would have been 11.54%. The
Lehman Brothers Intermediate Government
Bond Index represents an unmanaged
portfolio which does not reflect the
costs and expenses of actually
obtaining and managing the underlying
securities. It also does not reflect a
sales load.
<TABLE>
<CAPTION>
Lehman
Brothers
Intermediate
Government
Measurement Period Bond
(Fiscal Year Covered) Class A Index
<S> <C> <C>
6/1/94 9725.00 10000.00
7/94 9827.00 10133.00
10/94 9787.00 10080.00
1/95 9888.00 10233.00
4/95 10213.00 10609.00
7/95 10516.00 10983.00
10/95 10800.00 11270.00
1/96 11122.00 11617.00
4/96 10847.00 11408.00
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class A.................................. 3.28% 4.35%
Lehman Brothers Intermediate Government
Bond Index............................. 7.53% 7.12%
</TABLE>
A $10,000 investment in the Federal
Securities Income Fund, Class B, with a
maximum deferred sales load of 2.75%,
made on the inception date would have
increased to $10,693 (as of April 30,
1996). The graph on the right shows how
this compares to our benchmark over the
same period. Total return for the life
of the Fund was 6.93%, reflecting the
deferred sales load. Without the
deferred sales load, the return would
have been 9.95%. The Lehman Brothers
Intermediate Government Bond Index
represents an unmanaged portfolio which
does not reflect the costs and expenses
of actually obtaining and managing the
underlying securities. It also does not
reflect a sales load.
<TABLE>
<CAPTION>
Lehman
Brothers
Intermediate
Government
Measurement Period Bond
(Fiscal Year Covered) Class B Index
<S> <C> <C>
6/1/94 10000.00 10000.00
7/94 10095.00 10133.00
10/94 10034.00 10080.00
1/95 10118.00 10233.00
4/95 10432.00 10609.00
7/95 10720.00 10983.00
10/95 10989.00 11270.00
1/96 11296.00 11617.00
4/96 10501.00 11408.00
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class B.................................. 2.50% 3.56%
Lehman Brothers Intermediate Government
Bond Index............................. 7.53% 7.12%
</TABLE>
A $10,000 investment in the Federal
Securities Income Fund, Class C, made
on the inception date would have
increased to $11,209 (as of April 30,
1996). The graph on the right shows how
this compares to our benchmark over the
same period. Total return for the life
of the Fund was 12.09%. The Lehman
Brothers Intermediate Government Bond
Index represents an unmanaged portfolio
which does not reflect the costs and
expenses of actually obtaining and
managing the underlying securities. It
also does not reflect a sales load.
<TABLE>
<CAPTION>
Lehman
Brothers
Intermediate
Government
Measurement Period Bond
(Fiscal Year Covered) Class C Index
<S> <C> <C>
6/1/94 10000.00 10000.00
7/94 10111.00 10133.00
10/94 10075.00 10080.00
1/95 10186.00 10233.00
4/95 10528.00 10609.00
7/95 10846.00 10983.00
10/95 11147.00 11270.00
1/96 11486.00 11617.00
4/96 11209.00 11408.00
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class C.................................. 6.47% 6.13%
Lehman Brothers Intermediate Government
Bond Index............................. 7.53% 7.12%
</TABLE>
4
<PAGE> 5
NORTH CAROLINA TAX-FREE BOND FUND
A $10,000 investment in the North
Carolina Tax-Free Bond Fund, Class
A, with a maximum sales load of
2.75%, made on the inception date
would have increased to $10,649 (as
of April 30, 1996). The graph on the
right shows how this compares to our
benchmark over the same period. Total
return for the life of the Fund was
6.49%, reflecting the sales load.
Without the sales load, the return
would have been 9.50%. The Lehman
Brothers Municipal Bond Index does
not reflect a sales load.
<TABLE>
<CAPTION>
Lehman Brothers
Measurement Period Municipal Bond
(Fiscal Year Covered) Class A Index
<S> <C> <C>
6/1/94 9725 10000
7/94 9758 10121
10/94 9597 10185
1/95 9786 10513
4/95 10092 10957
7/95 10364 11314
10/95 10626 11697
1/96 10910 12096
4/96 10649 11828
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class A.................................. 2.60% 3.35%
Lehman Brothers Municipal Bond Index..... 7.95% 9.16%
</TABLE>
A $10,000 investment in the North
Carolina Tax-Free Bond Fund, Class
B, with a maximum deferred sales load
of 2.75%, made on the inception date
would have increased to $10,499 (as
of April 30, 1996). The graph on the
right shows how this compares to our
benchmark over the same period. Total
return for the life of the Fund was
4.99%, reflecting the sales load.
Without the sales load, the return
would have been 7.96%. The Lehman
Brothers Municipal Bond Index does
not reflect a sales load.
<TABLE>
<CAPTION>
Lehman
Brothers
Measurement Period Municipal
(Fiscal Year Covered) Class B Bond Index
<S> <C> <C>
6/1/94 10000 10000
7/94 10022 10121
10/94 9838 10185
1/95 10014 10513
4/95 10309 10957
7/95 10567 11314
10/95 10813 11697
1/96 11080 12096
4/96 10499 11828
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class B.................................. 1.84% 2.58%
Lehman Brothers Municipal Bond Index..... 7.95% 9.16%
</TABLE>
A $10,000 investment in the North
Carolina Tax-Free Bond Fund, Class
C, made on the inception date would
have increased to $11,008 (as of
April 30, 1996). The graph on the
right shows how this compares to our
benchmark over the same period. Total
return for the life of the Fund was
10.08%. The Lehman Brothers Municipal
Bond Index does not reflect a sales
load.
<TABLE>
<CAPTION>
Lehman
Brothers
Measurement Period Municipal
(Fiscal Year Covered) Class C Bond Index
<S> <C> <C>
6/1/94 10000 10000
7/94 10043 10121
10/94 9884 10185
1/95 10086 10513
4/95 10408 10957
7/95 10696 11314
10/95 10971 11697
1/96 11271 12096
4/96 11008 11828
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN 1 YEAR SINCE INCEPTION
------------------------------------------ ------ ---------------
<S> <C> <C> <C>
Class C.................................. 5.78% 5.14%
Lehman Brothers Municipal Bond Index..... 7.95% 9.16%
</TABLE>
In the opinion of the Fund's advisor, the Lehman Brothers Municipal Bond Index
most accurately represents the performance of the municipal market. However,
there are substantial differences between the index and the Fund. First, the
index covers municipal bonds nationwide, whereas the fund invests only in North
Carolina tax exempt bonds. Second, the index does not reflect the costs and
expenses of actually obtaining the underlying bonds. Finally, the index
represents an unmanaged portfolio whereas the Fund is professionally managed.
5
<PAGE> 6
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- --------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 95.4%
AEROSPACE -- 7.5%
80,000 Boeing Co. .............................................. $ 4,077,433 $ 6,570,000
100,000 Precision Castparts Corp. ............................... 2,139,836 4,337,500
------------ ------------
6,217,269 10,907,500
------------ ------------
CHEMICALS -- 7.2%
220,000 Cabot Corp. ............................................. 3,301,090 5,885,000
125,000 Engelhard Corp. ......................................... 2,974,973 3,140,625
70,000 Mississippi Chemical Corp. .............................. 1,430,625 1,408,750
------------ ------------
7,706,688 10,434,375
------------ ------------
CAPITAL GOODS -- 4.0%
130,000 Briggs & Stratton Corp. ................................. 4,564,798 5,898,750
------------ ------------
CAPITAL GOODS/TECHNOLOGY -- 7.6%
51,500 United Technologies Corp. ............................... 4,522,201 5,690,750
250,000 Lexmark International Group Inc. Class A*................ 4,270,964 5,406,250
------------ ------------
8,793,165 11,097,000
------------ ------------
CONSUMER CYCLICALS -- 2.8%
105,000 Gentex Corp.............................................. 2,469,875 4,147,500
------------ ------------
CONSUMER & INDUSTRIAL PRODUCTS -- 3.5%
66,000 General Electric Co. .................................... 3,141,520 5,115,000
------------ ------------
CONSUMER STAPLE PRODUCTS -- 4.3%
150,000 Millipore Corp. ......................................... 4,566,572 6,281,250
------------ ------------
ELECTRICAL EQUIPMENT -- 3.1%
100,000 Amp Inc. ................................................ 3,847,316 4,475,000
------------ ------------
ENERGY -- 4.2%
113,100 Tosco Corp. ............................................. 4,075,359 6,050,850
------------ ------------
ENVIRONMENTAL CONTROL -- 4.8%
80,000 Molten Metal Technology Corp.*........................... 1,783,250 2,580,000
141,250 Newpark Resources Inc.*.................................. 2,358,663 4,431,719
------------ ------------
4,141,913 7,011,719
------------ ------------
FINANCIAL SERVICES -- 6.4%
107,000 American Express Company................................. 2,958,922 5,189,500
60,000 Household International Inc. ............................ 2,751,265 4,147,500
------------ ------------
5,710,187 9,337,000
------------ ------------
HEALTHCARE MANAGEMENT -- 3.2%
100,000 Medaphis Corp.*.......................................... 3,348,977 4,612,500
------------ ------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
CENTURA FUNDS, INC.
CENTURA EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- --------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
INSURANCE -- 6.7%
90,000 Jefferson Pilot Corp..................................... $ 3,092,260 $ 4,747,500
150,000 Provident Companies Inc.................................. 3,503,250 5,081,250
------------ ------------
6,595,510 9,828,750
------------ ------------
MINING -- 4.8%
100,000 Potash Corp.............................................. 3,246,552 7,050,000
------------ ------------
PHARMACEUTICALS -- 6.1%
50,000 Guilford Pharmaceuticals Inc.*........................... 1,066,570 1,275,000
65,000 Rhone-Poulenc Rorer Inc.................................. 3,100,173 4,030,000
75,000 Watson Pharmaceuticals Inc.*............................. 2,917,500 3,562,500
------------ ------------
7,084,243 8,867,500
------------ ------------
RAW MATERIALS -- 3.9%
100,000 Nucor Inc................................................ 5,994,600 5,625,000
------------ ------------
RETAIL-SPECIALTY LINE -- 2.5%
99,000 Autozone Inc.*........................................... 2,333,525 3,613,500
------------ ------------
TECHNOLOGY -- 8.1%
100,000 Applied Materials Inc.*.................................. 5,061,900 4,000,000
75,000 Computer Sciences Corp.*................................. 4,469,010 5,550,000
75,000 Madge Networks N.V.*..................................... 2,115,925 2,212,500
------------ ------------
11,646,835 11,762,500
------------ ------------
TEXTILES -- 3.7%
200,000 Unifi Inc................................................ 4,709,400 5,375,000
------------ ------------
TRUCKING & LEASING -- 1.0%
111,000 Celadon Group Inc.*...................................... 1,515,552 1,470,750
------------ ------------
TOTAL COMMON STOCKS...................................... 101,709,856 138,961,444
------------ ------------
U.S. TREASURY BILL -- 2.7%
4,000,000 U.S. Treasury Bill due 5/30/96........................... 3,984,445 3,984,445
------------ ------------
MONEY MARKET FUNDS -- 4.8%
3,264,880 Financial Square Prime Obligations Portfolio............. 3,264,880 3,264,880
3,635,190 Temp Investment Fund..................................... 3,635,190 3,635,190
------------ ------------
TOTAL MONEY MARKET FUNDS................................. 6,900,070 6,900,070
------------ ------------
TOTAL INVESTMENTS -- 102.9%.............................. $112,594,371+ $149,845,959
=============
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS -- (2.9)%....................................... (4,197,558)
------------
NET ASSETS -- 100.0%..................................... $145,648,401
=============
</TABLE>
- ---------------
* Non-income producing securities.
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
7
<PAGE> 8
CENTURA FUNDS, INC.
CENTURA FEDERAL SECURITIES INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT COST VALUE
---------- ------------ ------------
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 21.6%
FEDERAL HOME LOAN BANK -- 4.6%
7.89%, 12/23/97........................................ $2,000,000 $ 2,000,000 $ 2,066,640
7.02%, 07/06/99........................................ 3,000,000 2,990,156 3,056,670
------------ ------------
4,990,156 5,123,310
------------ ------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.8%
7.35%, 06/01/05........................................ 2,000,000 2,000,000 1,936,960
------------ ------------
FEDERAL FARM CREDIT BANK -- 7.9%
5.94%, 01/23/01........................................ 3,000,000 2,998,125 2,900,279
5.79%, 03/01/99........................................ 1,141,304 1,109,903 1,121,377
6.04%, 01/19/06........................................ 5,000,000 5,036,075 4,664,999
------------ ------------
9,144,103 8,686,655
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 7.3%
7.29%, 09/22/99........................................ 2,000,000 1,982,692 2,026,060
7.40%, 07/01/04........................................ 3,000,000 3,168,584 3,086,370
7.47%, 05/03/06........................................ 3,000,000 3,000,000 2,962,680
------------ ------------
8,151,276 8,075,110
------------ ------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS................. 24,285,535 23,822,035
------------ ------------
U.S. TREASURY NOTES -- 72.6%
6.125%, 12/31/96....................................... 5,000,000 5,008,486 5,021,000
6.875%, 04/30/97....................................... 5,000,000 5,044,437 5,057,599
5.500%, 09/30/97....................................... 5,000,000 4,945,388 4,975,600
5.250%, 07/31/98....................................... 5,000,000 4,876,626 4,912,400
7.125%, 10/15/98....................................... 5,000,000 5,039,042 5,112,749
5.125%, 12/31/98....................................... 5,000,000 4,794,120 4,872,849
6.375%, 01/15/99....................................... 5,000,000 4,959,223 5,023,350
7.000%, 04/15/99....................................... 5,000,000 5,011,541 5,103,600
6.000%, 10/15/99....................................... 5,000,000 4,881,330 4,963,000
8.500%, 02/15/00....................................... 5,000,000 5,152,629 5,357,899
7.125%, 02/29/00....................................... 5,000,000 4,977,031 5,127,499
5.250%, 01/31/01....................................... 2,000,000 1,977,365 1,908,420
5.750%, 08/15/03....................................... 5,000,000 4,868,700 4,753,850
7.875%, 11/15/04....................................... 5,000,000 5,345,211 5,377,100
6.500%, 05/15/05....................................... 5,000,000 5,118,049 4,932,799
6.500%, 08/15/05....................................... 5,000,000 4,976,562 4,931,000
5.625%, 02/15/06....................................... 3,000,000 2,832,606 2,780,970
------------ ------------
TOTAL U.S. TREASURY NOTES................................ 79,808,346 80,211,684
------------ ------------
MONEY MARKET FUND -- 4.8%
Goldman Sachs Institutional Treasury Instrument
Portfolio............................................ 5,327,978 5,327,978 5,327,978
------------ ------------
TOTAL INVESTMENTS -- 99.0%............................... $109,421,859+ $109,361,697
=============
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.0%... 1,115,980
------------
NET ASSETS -- 100%....................................... $110,477,677
=============
</TABLE>
- ---------------
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
8
<PAGE> 9
CENTURA FUNDS, INC.
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
<TABLE>
<CAPTION>
CREDIT PRINCIPAL MARKET
RATINGS* AMOUNT COST VALUE
- -------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
NORTH CAROLINA MUNICIPAL OBLIGATIONS -- 96.2%
Aa/AA- Alamance County UTGO, 5.70%, 05/01/96......... $ 350,000 $ 350,000 $ 350,014
Aa/AA- Buncombe County UTGO, Refunding, 5.00%,
03/01/01.................................... 1,000,000 1,013,163 1,020,000
Aa/AA- Catawba County UTGO, 4.60%, 06/01/03.......... 1,000,000 1,004,127 993,750
Aa/AA- Catawba County UTGO, 4.60%, 06/01/05.......... 1,000,000 983,187 982,500
Aaa/AAA Charlotte UTGO, Refunding, 5.10%, 06/01/09.... 1,500,000 1,492,740 1,464,375
Aa/AA Charlotte Mecklenberg Hospital Authority
Health Care System, Revenue, Refunding,
5.20%, 01/01/97............................. 200,000 200,261 201,630
Aa/AA Charlotte Mecklenberg Hospital Authority
Health Care System, Revenue, Refunding,
6.00%, 01/01/04............................. 1,000,000 996,867 1,058,750
Aaa/AAA Cleveland County UTGO, (FGIC), Refunding,
5.10%, 06/01/07............................. 1,000,000 1,000,000 976,250
Aaa/AAA Concord Utility System, Revenue, (MBIA),
4.80%, 12/01/03............................. 500,000 500,000 493,125
Aaa/AAA Concord Utility System, Revenue, (MBIA),
4.90%, 12/01/04............................. 500,000 500,000 492,500
Aaa/AAA Cumberland County Civic Center Project, Series
A, COPS, (AMBAC), 6.20%, 12/01/07........... 1,535,000 1,550,374 1,630,937
Aaa/AAA Durham County UTGO, 5.40%, 02/01/99........... 1,200,000 1,220,898 1,234,500
Aa1/AAA Durham City UTGO, 5.00%, 02/01/11............. 1,540,000 1,540,000 1,451,450
Aaa/AAA Fayetteville Public Works, Series A, Revenue,
(AMBAC), 5.25%, 03/01/08.................... 1,280,000 1,274,326 1,252,800
Aa1/AAA Forsyth County Public Improvement UTGO, 4.75%,
02/01/10.................................... 1,000,000 994,920 930,000
Aa1/AAA Forsyth County Public Improvement UTGO, 4.75%,
02/01/11.................................... 1,000,000 968,770 917,500
Aaa/AAA Gaston County UTGO, (MBIA),
5.70%, 03/01/04............................. 850,000 863,318 892,500
Aaa/AAA Gaston County UTGO, (MBIA),
5.70%, 03/01/05............................. 1,000,000 1,031,465 1,046,250
Aaa/AAA Gastonia UTGO, (FGIC), 5.20%, 04/01/01........ 700,000 699,260 717,500
Aa1/AAA Greensboro Public Improvement, Series B, UTGO,
5.40%, 04/01/04............................. 1,000,000 996,460 1,027,500
Aa1/AA+ Guilford County UTGO, Refunding, 4.90%,
04/01/01.................................... 1,000,000 1,021,793 1,013,750
Aaa/AAA Mecklenberg County GO, 4.70%, 03/01/00........ 1,000,000 1,010,462 1,010,000
Aaa/AAA Mecklenberg County GO, 4.70%, 03/01/02........ 1,000,000 1,004,998 1,005,000
Aa/A+ New Hanover County Solid Waste UTGO,
Refunding, 4.80%, 09/01/07.................. 1,000,000 949,953 952,500
Aaa/AAA North Carolina Municipal Power Agency #1,
Catawba Electric Revenue, (MBIA) (IBC),
Refunding, 5.25%, 01/01/09.................. 1,500,000 1,415,610 1,481,250
Aaa/AAA North Carolina Capital Improvement, Series A,
UTGO, 4.70%, 02/01/02....................... 1,000,000 988,610 1,001,250
Aaa/AAA North Carolina Capital Improvement, Series A,
UTGO, 4.70%, 02/01/04....................... 950,000 947,005 938,125
A1/A+ Onslow County UTGO, 5.60%, 03/01/05........... 1,000,000 1,020,802 1,032,500
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
CENTURA FUNDS, INC.
CENTURA NORTH CAROLINA TAX-FREE BOND FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
<TABLE>
<CAPTION>
CREDIT PRINCIPAL MARKET
RATINGS* AMOUNT COST VALUE
- -------- ---------- ----------- -----------
<S> <C> <C> <C>
NORTH CAROLINA MUNICIPAL OBLIGATIONS -- (CONTINUED)
Aa1/AA+ Orange County UTGO, Refunding, 5.10%,
06/01/03.................................... $1,050,000 $ 1,052,995 $ 1,074,937
Aa/AA- Pitt County UTGO, Refunding,
5.10%, 02/01/06............................. 1,000,000 1,011,468 1,000,000
Aaa/AAA Raleigh UTGO, Refunding, 6.40%, 03/01/02...... 1,250,000 1,351,077 1,354,688
Aa/AA University of North Carolina, Utility System
Revenue, Refunding, 5.00%, 08/01/09......... 1,460,000 1,432,263 1,388,825
Aa/AA University of North Carolina at Chapel Hill,
Hospital Revenue, 4.35%, 02/15/02........... 1,000,000 1,000,000 981,250
Aa/AA University of North Carolina at Chapel Hill,
Hospital Revenue, 4.45%, 02/15/03........... 1,000,000 1,000,000 978,750
Aaa/AAA Wake County UTGO, Refunding, 4.50%, 02/01/06.. 2,000,000 2,000,000 1,922,500
Aaa/AAA Wake County Hospital Revenue, (MBIA),
4.50%, 10/01/03............................. 1,200,000 1,124,517 1,165,500
A/A Wilkes County UTGO, Refunding, 5.20%,
06/01/05.................................... 1,275,000 1,275,000 1,271,813
Aa/AA+ Winston-Salem Water & Sewer System, Revenue,
6.30%, 06/01/06............................. 1,000,000 1,084,894 1,078,750
----------- -----------
TOTAL MUNICIPAL OBLIGATIONS................... 39,871,583 39,785,219
----------- -----------
MONEY MARKET FUNDS -- 4.8%
Institutional Liquid Assets Tax Exempt Fund... 968,472 968,472 968,472
North Carolina Municipal Money Market Fund.... 1,003,140 1,003,140 1,003,140
----------- -----------
TOTAL MONEY MARKET FUNDS...................... 1,971,612 1,971,612
----------- -----------
TOTAL INVESTMENTS -- 101.0%................... $41,843,195+ $41,756,831
============
LIABILITIES IN EXCESS OF CASH AND OTHER
ASSETS -- (1.0)%............................ (427,611)
-----------
NET ASSETS -- 100.0%.......................... $41,329,220
============
</TABLE>
- ---------------
* See page 8 for Credit Ratings.
+ The cost for Federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
10
<PAGE> 11
CENTURA FUNDS, INC.
FOOTNOTES TO PORTFOLIOS
APRIL 30, 1996
* 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.
11
<PAGE> 12
CENTURA FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1996
<TABLE>
<CAPTION>
CENTURA CENTURA
CENTURA FEDERAL NORTH
EQUITY SECURITIES CAROLINA
GROWTH INCOME TAX-FREE
FUND FUND BOND FUND
------------- ------------------ ------------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
(identified cost -- $112,594,371,
$109,421,859, and $41,843,195,
respectively) (Note 2a)................... $149,845,959 $109,361,697 $ 41,756,831
Cash........................................ -- -- 86,176
Dividends and interest receivable........... 81,325 1,709,793 545,787
Receivable for Fund shares sold............. 102,487 443 --
Unamortized organization cost (Note 2e)..... 22,730 30,061 10,021
Other assets................................ 12,500 -- --
------------- ------------------ ------------------
Total Assets............................ 150,065,001 111,101,994 42,398,815
------------- ------------------ ------------------
LIABILITIES:
Payable for investments purchased........... 4,134,300 -- 1,013,094
Payable for Fund shares purchased........... 69 -- 100
Payable to custodian for Fund
disbursements............................. 106,428 510,847 --
Investment advisory fee payable............. 81,371 27,184 17,500
Administration fee payable.................. 17,437 13,592 16,500
Transfer agency fee payable................. 8,535 1,719 1,695
12B-1 Distribution fee payable.............. 5,886 274 995
Accrued expenses and other expenses......... 62,574 70,701 19,711
------------- ------------------ ------------------
Total Liabilities....................... 4,416,600 624,317 1,069,595
------------- ------------------ ------------------
NET ASSETS.................................. $145,648,401 $110,477,677 $ 41,329,220
============== ================= ===================
NET ASSETS:
Shares of beneficial interest outstanding
(par value $.001 per share)
450,000,000 shares authorized (Note
9)...................................... $ 10,180 $ 11,040 $ 4,118
Additional paid-in capital................ 105,460,769 110,487,788 41,049,883
Accumulated net realized capital
gain/(loss) on investments.............. 2,925,864 39,011 361,583
Net unrealized appreciation (depreciation)
on investments (Note 7)................. 37,251,588 (60,162) (86,364)
------------- ------------------ ------------------
$145,648,401 $110,477,677 $ 41,329,220
============== ================= ===================
CLASS A:
Net Assets................................ $ 5,740,390 $ 526,374 $ 3,927,049
Shares Outstanding........................ 401,069 52,606 391,286
Net Asset Value Per Share................. $14.31 $10.01 $10.04
======= ========= =========
Maximum Offering Price Per Share
($14.31/.955, $10.01/.9725 and
$10.04/.9725, respectively)............. $14.98 $10.29 $10.32
======= ========= =========
CLASS B:
Net Assets................................ $ 6,193,920 $ 176,326 $ 392,677
Shares Outstanding........................ 434,840 17,625 39,131
Net Asset Value Per Share................. $14.24 $10.01 $10.04
======= ========= =========
CLASS C:
Net Assets................................ $133,714,091 $109,774,977 $ 37,009,494
Shares Outstanding........................ 9,344,335 10,969,624 3,687,751
Net Asset Value Per Share................. $14.31 $10.01 $10.04
======= ========= =========
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 13
CENTURA FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1996
<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........................................ $ 447,689 $6,743,376 $1,877,603
Dividends....................................... 1,362,901 -- --
----------- ----------- ----------
Total income................................. 1,810,590 6,743,376 1,877,603
----------- ----------- ----------
EXPENSES:
Advisory (Note 3)............................... 802,888 312,098 138,274
Administrative services (Note 4)................ 172,047 156,049 59,260
Fund accounting (Note 5)........................ 32,848 33,981 41,369
Registration.................................... 13,842 9,917 5,297
Custodian (Note 5).............................. 28,109 24,580 12,503
Reports to shareholders......................... 22,666 8,799 7,872
Audit........................................... 12,872 15,500 6,205
Shareholder services (Note 5)................... 38,623 7,326 6,452
Directors fees & expenses....................... 7,920 7,920 7,920
Legal........................................... 13,754 12,851 4,910
Insurance....................................... 8,569 9,611 3,623
Amortization of organization expenses........... 7,386 9,772 3,257
12B-1 Distribution fee-class A (Note 5)......... 7,215 888 5,259
12B-1 Distribution fee-class B (Note 5)......... 33,942 1,696 3,168
Miscellaneous................................... 24,609 29,253 19,510
----------- ----------- ----------
Total expenses before waivers................ 1,227,290 640,241 324,879
Less: Expenses waived by
Adviser/Administrator (Notes 3 and 4)...... -- -- (142,535)
----------- ----------- ----------
Net expenses.................................... 1,227,290 640,241 182,344
----------- ----------- ----------
Net investment income (Note 2d)................... 583,300 6,103,135 1,695,259
----------- ----------- ----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS:
Net realized gain on investments................ 5,486,387 304,345 792,820
Net change in unrealized
appreciation/(depreciation) on
investments (Note 7)......................... 28,573,774 (266,951) (318,669)
----------- ----------- ----------
Net realized and unrealized gains on
investments.................................. 34,060,161 37,394 474,151
----------- ----------- ----------
Net increase in net assets resulting
from operations................................. $34,643,461 $6,140,529 $2,169,410
========== ========== =========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 14
CENTURA FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CENTURA FEDERAL SECURITIES
CENTURA EQUITY GROWTH FUND INCOME FUND
------------------------------- -------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR JUNE 1, 1994* FOR THE YEAR JUNE 1, 1994*
ENDED THROUGH ENDED THROUGH
APRIL 30, 1996 APRIL 30, 1995 APRIL 30, 1996 APRIL 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Net investment income.................. $ 583,300 $ 515,377 $ 6,103,135 $ 4,728,278
Net realized gain/(loss) on
investments.......................... 5,486,387 (2,101,969) 304,345 (265,334)
Net change in unrealized appreciation/
(depreciation) on investments........ 28,573,774 8,677,814 (266,951) 206,789
------------ ----------- ------------ ------------
Net increase in net assets resulting from
operations............................. 34,643,461 7,091,222 6,140,529 4,669,733
------------ ----------- ------------ ------------
DISTRIBUTIONS FROM NET INVESTMENT INCOME:
Class A.............................. (9,804) (4,155) (19,788) (9,413)
Class B.............................. (1,144) (2,648) (8,208) (2,099)
Class C.............................. (572,220) (508,706) (6,075,139) (4,716,766)
------------ ----------- ------------ ------------
Total distributions from net
investment income (Note 2d).......... (583,168) (515,509) (6,103,135) (4,728,278)
------------ ----------- ------------ ------------
DISTRIBUTIONS FROM CAPITAL GAINS:
Class A.............................. (12,445) -- -- --
Class B.............................. (14,106) -- -- --
Class C.............................. (432,003) -- -- --
------------ ----------- ------------ ------------
Total distributions from capital
gains................................ (458,554) -- -- --
------------ ----------- ------------ ------------
Total Distributions...................... (1,041,722) (515,509) (6,103,135) (4,728,278)
------------ ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares:
Class A.............................. 3,996,812 1,039,671 296,512 247,553
Class B.............................. 3,972,644 1,363,221 112,249 104,640
Class C.............................. 34,342,658 87,017,254 28,545,692 102,532,024
------------ ----------- ------------ ------------
Total proceeds from sales of shares.... 42,312,114 89,420,146 28,954,453 102,884,217
------------ ----------- ------------ ------------
Proceeds of shares issued in
reinvestment of dividends:
Class A.............................. 22,225 4,155 19,767 9,387
Class B.............................. 15,094 2,648 8,047 2,097
Class C.............................. 712,210 398,366 3,621,321 2,763,205
------------ ----------- ------------ ------------
Total proceeds of shares issued in
reinvestment of dividends............ 749,529 405,169 3,649,135 2,774,689
------------ ----------- ------------ ------------
Cost of shares redeemed:
Class A.............................. (127,873) (171,707) (31,434) (21,587)
Class B.............................. (168,362) (127,493) (61,464) --
Class C.............................. (17,052,874) (9,801,033) (16,242,864) (11,439,650)
------------ ----------- ------------ ------------
Total cost of shares redeemed.......... (17,349,109) (10,100,233) (16,335,762) (11,461,237)
------------ ----------- ------------ ------------
Net increase in net assets from
capital share transactions (Note 8).... 25,712,534 79,725,082 16,267,826 94,197,669
------------ ----------- ------------ ------------
Total increase in net assets........... 59,314,273 86,300,795 16,305,220 94,139,124
NET ASSETS:
Beginning of period.................... 86,334,128 33,333 94,172,457 33,333
------------ ----------- ------------ ------------
End of period+......................... $145,648,401 $ 86,334,128 $110,477,677 $ 94,172,457
============ =========== ============ ============
</TABLE>
* Fund commenced investment operations on June 1, 1994.
See accompanying notes to financial statements.
14
<PAGE> 15
CENTURA FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
<TABLE>
<CAPTION>
CENTURA
NORTH CAROLINA
TAX-FREE BOND FUND
--------------------------------
FOR THE PERIOD
FOR THE YEAR JUNE 1, 1994*
ENDED THROUGH
APRIL 30, 1996 APRIL 30, 1995
-------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income.......................................... $ 1,695,259 $ 1,299,735
Net realized gain/(loss) on investments........................ 792,820 (137,684)
Net change in unrealized appreciation/(depreciation) on
investments.................................................. (318,669) 232,305
----------- -----------
Net increase in net assets resulting
from operations................................................ 2,169,410 1,394,356
----------- -----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME:
Class A...................................................... (82,525) (18,457)
Class B...................................................... (10,750) (8,666)
Class C...................................................... (1,601,984) (1,272,612)
----------- -----------
Total distributions from net
investment income (Note 2d).................................. (1,695,259) (1,299,735)
----------- -----------
DISTRIBUTIONS FROM CAPITAL GAINS:
Class A...................................................... (17,195) --
Class B...................................................... (2,298) --
Class C...................................................... (274,060) --
----------- -----------
Total distributions from capital gains......................... (293,553) --
----------- -----------
Total Distributions.............................................. (1,988,812) (1,299,735)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares:
Class A...................................................... 3,531,762 759,168
Class B...................................................... 231,490 280,551
Class C...................................................... 12,172,633 43,283,109
----------- -----------
Total proceeds from sales of shares............................ 15,935,885 44,322,828
----------- -----------
Proceeds of shares issued in
reinvestment of dividends:
Class A...................................................... 100,014 16,577
Class B...................................................... 9,265 2,959
Class C...................................................... 45,725 53,208
----------- -----------
Total proceeds of shares issued in
reinvestment of dividends.................................... 155,004 72,744
----------- -----------
Cost of shares redeemed:
Class A...................................................... (94,372) (351,699)
Class B...................................................... (122,233) (20,586)
Class C...................................................... (10,314,437) (8,562,467)
----------- -----------
Total cost of shares redeemed.................................. (10,531,042) (8,934,752)
----------- -----------
Net increase in net assets from
capital share transactions (Note 8)............................ 5,559,847 35,460,820
----------- -----------
Total increase in net assets................................... 5,740,445 35,555,441
NET ASSETS:
Beginning of period............................................ 35,588,775 33,334
----------- -----------
End of period.................................................. $ 41,329,220 $ 35,588,775
=========== ===========
</TABLE>
* Fund commenced investment operations on June 1, 1994.
See accompanying notes to financial statements.
15
<PAGE> 16
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996
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 Centura Equity Growth Fund seeks to achieve its investment objective of
long-term capital appreciation by investing in a diversified portfolio comprised
mainly of publicly traded common and preferred stocks and securities convertible
into or exchangeable for common stock.
The Centura Federal Securities Fund seeks to achieve its investment
objective of providing relatively high current income consistent with relative
stability of principal and safety by investing primarily in securities issued by
the U.S. Government, its agencies and instrumentalities.
The Centura North Carolina Tax-Free Bond Fund seeks to achieve its
investment objective of providing relatively high current income that is free of
both Federal and North Carolina personal income tax together with relative
safety of principal by investing primarily in a portfolio of high quality
municipal securities.
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
16
<PAGE> 17
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
APRIL 30, 1996
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 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
17
<PAGE> 18
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
APRIL 30, 1996
the beginning of each day. Class specific expenses, as determined under
applicable law and regulatory policy, are borne by the class incurring the
expense.
g. Use of Estimates Estimates and assumptions are required to be made
regarding assets, liabilities, and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ from these amounts.
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
For the year ended April 30, 1996, Centura Bank was entitled to and
voluntarily waived advisory fees as listed below:
<TABLE>
<CAPTION>
ENTITLED WAIVED
-------- -------
<S> <C> <C>
Centura Equity Growth Fund........................................ $802,888 --
Centura Federal Securities Income Fund............................ 312,098 --
Centura North Carolina Tax-Free Bond Fund......................... 138,274 $99,774
</TABLE>
4. ADMINISTRATOR -- The Funds have entered into Administrative Services
Contracts with Furman Selz LLC ("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 year ended April 30, 1996, 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........................................ $172,047 --
Centura Federal Securities Income Fund............................ 156,049 --
Centura North Carolina Tax-Free Bond Fund......................... 59,260 $42,761
</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
18
<PAGE> 19
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
APRIL 30, 1996
account fee and reimbursement for out of pocket expenses in connection with
shareholder servicing. For the year ended April 30, 1996, Furman Selz earned
transfer agent fees and out-of-pocket expenses of $38,623, $7,326 and $6,452 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 year ended April 30, 1996, Furman Selz earned $32,848 for the Equity
Growth Fund, $33,981 for the Federal Securities Income Fund and $41,369 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, and was
formed specifically to distribute the Funds. (See "The Administrator".)
Each of the Funds has adopted a service and distribution plan (the "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 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 year ended April 30, 1996,
Centura Funds Distributor, Inc. earned distribution fees for Class A of $7,215,
$888 and $5,259 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 year ended April 30, 1996, Centura Funds Distributor,
Inc. earned distribution fees for Class B of $33,942, $1,696 and $3,168 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 year
19
<PAGE> 20
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
APRIL 30, 1996
ended April 30, 1996, Centura Bank earned custodian fees and out-of-pocket
expenses of $28,109, $24,580 and $12,503 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.
7. SECURITY TRANSACTIONS -- The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the year ended April
30, 1996, 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........ $72,011,207 $48,687,615 -- --
Centura Federal Securities Income
Fund............................ -- -- $ 45,355,781 $34,414,547
Centura North Carolina Tax-Free
Bond Fund....................... 35,280,510 30,592,407 -- --
</TABLE>
Unrealized appreciation and depreciation at April 30, 1996, based on cost
of securities for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Centura Equity Growth Fund.................... $ 38,749,765 $ (1,498,177) $ 37,251,588
Centura Federal Securities Income Fund........ 1,057,575 (1,117,737) (60,162)
Centura North Carolina Tax-Free Bond Fund..... 416,579 (502,943) (86,364)
</TABLE>
20
<PAGE> 21
CENTURA FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
APRIL 30, 1996
8. 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 year ended April 30, 1996, and the period ended
April 30, 1995, respectively were as follows:
<TABLE>
<CAPTION>
CENTURA EQUITY GROWTH FUND CENTURA EQUITY GROWTH FUND
------------------------------ ------------------------------
FOR THE PERIOD
JUNE 1, 1994*
FOR YEAR ENDED THROUGH
APRIL 30, 1996 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........................... 318,467 319,526 2,792,574 106,840 138,458 8,813,192
Shares issued in reinvestment of
dividends from net investment
income.............................. 1,775 1,215 57,537 413 318 39,707
Shares redeemed....................... (9,661) (13,258) (1,353,253) (17,876) (12,530) (1,006,533)
------- ------- ---------- ------- ------- ----------
Net increase in shares................ 310,581 307,483 1,496,858 89,377 126,246 7,846,366
------- ------- ---------- ------- ------- ----------
Closing Balance.............. 401,069 434,840 9,344,335 90,488 127,357 7,847,477
======== ======== ========== ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
CENTURA FEDERAL SECURITIES CENTURA FEDERAL SECURITIES
INCOME FUND INCOME FUND
------------------------------ ------------------------------
FOR THE PERIOD
JUNE 1, 1994*
FOR YEAR ENDED THROUGH
APRIL 30, 1996 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........................... 28,969 10,998 2,798,588 24,889 10,545 10,288,015
Shares issued in reinvestment of
dividends from net investment
income.............................. 1,936 788 354,575 951 213 279,771
Shares redeemed....................... (3,077) (6,030) (1,593,320) (2,173) 0 (1,159,116)
------- ------- ---------- ------- ------- ----------
Net increase in shares................ 27,828 5,756 1,559,843 23,667 10,758 9,408,670
------- ------- ---------- ------- ------- ----------
Closing Balance.............. 52,606 17,625 10,969,624 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
JUNE 1, 1994*
FOR YEAR ENDED THROUGH
APRIL 30, 1996 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........................... 347,776 22,572 1,197,604 76,112 28,313 4,357,097
Shares issued in reinvestment of
dividends from net investment
income.............................. 9,761 904 4,473 1,686 302 5,402
Shares redeemed....................... (9,198) (11,906) (1,009,560) (35,962) (2,165) (868,377)
------- ------- ---------- ------- ------- ----------
Net increase in shares................ 348,339 11,570 192,517 41,836 26,450 3,494,122
------- ------- ---------- ------- ------- ----------
Closing Balance.............. 391,286 39,131 3,687,751 42,947 27,561 3,495,234
======== ======== ========== ======== ======== ==========
</TABLE>
* Fund commenced investment operations on June 1, 1994.
21
<PAGE> 22
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS
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
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 1996 APRIL 30, 1995 APRIL 30, 1996 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>
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).0.03 (0.06) 0.07 0.06 0.03 0.07 0.57 0.50 0.60 0.52 0.45 0.54
Net Realized
and
Unrealized
Gain/(Loss)
on
Securities... 3.67 3.65 3.65 0.70 0.69 0.70 0.04 0.04 0.04 (0.03) (0.03) (0.03)
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Total from
Investment
Operations... 3.70 3.59 3.72 0.76 0.72 0.77 0.61 0.54 0.64 0.49 0.42 0.51
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Less
Distributions:
Dividends
from Net
Investment
Income..... (0.05) (0.00) (0.07) (0.06) (0.03) (0.07) (0.57) (0.50) (0.60) (0.52) (0.45) (0.54)
Distributions
from
Capital
Gains...... (0.04) (0.04) (0.04) -- -- -- -- -- -- -- -- --
------ ------ -------- ------ ------ ------- ------ ------ -------- ------ ------ -------
Total
Distributions. (0.09) (0.04) (0.11) (0.06) (0.03) (0.07) (0.57) (0.50) (0.60) (0.52) (0.45) (0.54)
======= ======= ========= ======= ======= ======== ======= ======= ========= ======= ======= ========
Net Asset
Value, End of
Period....... $14.31 $14.24 $ 14.31 $10.70 $10.69 $ 10.70 $10.01 $10.01 $ 10.01 $ 9.97 $ 9.97 $ 9.97
======= ======= ========= ======= ======= ======== ======= ======= ========= ======= ======= ========
Total Return
(not
reflecting
sales
load)........ 34.72% 33.73% 34.97% 7.64% 7.23% 7.71% 6.20% 5.40% 6.47% 5.02% 4.32% 5.28%
======= ======= ========= ======= ======= ======== ======= ======= ========= ======= ======= ========
Ratios/Supplemental
Data:
Net Assets,
End of
Period
(000's).... $5,740 $6,194 $133,714 $ 968 $1,362 $84,004 $ 526 $ 176 $109,775 $ 247 $ 118 $93,807
Ratio of
Expenses to
Average Net
Assets*.... 1.26% 2.02% 1.04% 1.29% 2.03% 1.04% 0.85% 1.61% 0.61% 0.86% 1.61% 0.63%
Ratios of
Expenses
before
Waivers/Reimbursements
to Average
Net
Assets*.... 1.26% 2.02% 1.04% 1.32% 2.06% 1.07% 0.85% 1.61% 0.61% 0.89% 1.64% 0.66%
Ratio of Net
Investment
Income to
Average Net
Assets*.... 0.27% (0.48)% 0.55% 0.63% 0.00% 0.79% 5.61% 4.84% 5.88% 5.58% 4.86% 5.97%
Portfolio
Turnover
Rate......... 46% 46% 46% 44% 44% 44% 34% 34% 34% 42% 42% 42%
</TABLE>
* Annualized
22
<PAGE> 23
CENTURA FUNDS, INC.
FINANCIAL HIGHLIGHTS -- (CONTINUED)
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CENTURA
NORTH CAROLINA
TAX-FREE BOND FUND
---------------------------------------------------------------------------
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
APRIL 30, 1996 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)................... 0.42 0.34 0.44 0.39 0.32 0.41
Net Realized and Unrealized Gain/(Loss) on
Securities................................... 0.13 0.13 0.13 (0.02) (0.02) (0.02)
------ ------ ------- ------ ------ -------
Total from Investment Operations............... 0.55 0.47 0.57 0.37 0.30 0.39
------ ------ ------- ------ ------ -------
Less Distributions:
Dividends from Net Investment Income........... (0.42) (0.34) (0.44) (0.39) (0.32) (0.41)
Distributions from Capital Gains............... (0.07) (0.07) (0.07) -- -- --
------ ------ ------- ------ ------ -------
Total Distributions............................ (0.49) (0.41) (0.51) (0.39) (0.32) (0.41)
------ ------ ------- ------ ------ -------
Net Asset Value, End of Period.................. $10.04 $10.04 $ 10.04 $ 9.98 $ 9.98 $ 9.98
======= ======= ======== ======= ======= ========
Total Return (not reflecting sales load)........ 5.50% 4.72% 5.78% 3.77% 3.09% 4.08%
======= ======= ======== ======= ======= ========
Ratios/Supplemental Data:
Net Assets, End of Period (000's).............. $3,927 $ 393 $37,009 $ 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*........ 1.04% 1.80% 0.80% 0.92% 1.49% 0.91%
Ratio of Net Investment Income to Average
Net Assets*.................................. 3.98% 3.30% 4.32% 4.46% 3.89% 4.64%
Portfolio Turnover Rate......................... 80% 80% 80% 121% 121% 121%
</TABLE>
* Annualized
23
<PAGE> 24
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholders
Centura Funds, Inc.
We have audited the accompanying statements of assets and liabilities of
Centura Equity Growth Fund, Centura Federal Securities Income Fund and Centura
North Carolina Tax-Free Bond Fund, separate portfolios of Centura Funds, Inc.,
including the portfolios of investments, as of April 30, 1996, and the related
statements of operations for the year then ended, and the statements of changes
in net assets, and the financial highlights for the year then ended and for the
period June 1, 1994 (commencement of operations) through April 30, 1995. These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1996, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Centura Equity Growth Fund, Centura Federal Securities Income Fund and Centura
North Carolina Tax-Free Bond Fund as of April 30, 1996, the results of their
operations, the changes in their net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
MCGLADREY & PULLEN LLP
New York, New York
June 6, 1996
24
<PAGE> 25
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
J. Franklin Martin+
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> 26
[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 LLC
AND SPONSOR 230 Park Avenue
New York, New York 10169
DISTRIBUTOR Centura Funds Distributor, Inc.
230 Park Avenue
New York, New York 10169
COUNSEL Dechert Price & Rhoads
INDEPENDENT 1500 K Street, N.W.
Washington, D.C. 20005
INDEPENDENT McGladrey & Pullen LLP
ACCOUNTANTS 555 Fifth Avenue
New York, NY 10017
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 to use
in connection with any offering of the Funds shares 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.
CNSAT0-94
C
E CENTURA EQUITY
N GROWTH FUND
T
U CENTURA FEDERAL
R SECURITIES INCOME
A FUND
F CENTURA NORTH
U CAROLINA TAX-FREE
N BOND FUND
D
S
ANNUAL REPORT
APRIL 30, 1996
