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Previous: MORGAN STANLEY RUSSIA & NEW EUROPE FUND INC, PRE 14A, 1999-02-24 |
Next: EAST END MUTUAL FUNDS INC, 485BPOS, 1999-02-24 |
East End Mutual Funds, Inc.
Capital Appreciation Series
736 West End Avenue, Suite 3A
New York, New York 10025
1 800 289 6336
SEMI ANNUAL REPORT TO SHAREHOLDERS
February 24,1998
Dear Shareholder:
The Fund had a 6.32% total return for the six months ended
December 31,1998. This return compares favorably with that of
the Standard and Poor's 500 Index of 7.04% and the Russell 3000
of 5.78%.
This performance was accomplished in spite of the first default
of a government in many years - by Russia. It had a dramatic but
negative effect on stock markets all over the world. In August
and again in October we witnessed the selling of securities
regardless of price. This selling was done by unregulated hedge
funds which received margin calls on their holdings forcing them
to sell, depressing the markets. These hedge funds received
redemption requests by their investors which further lowered
the prices of stocks in general.
The Manager of the Fund stood fast and did not participate in
this panic selling, thereby saving the Fund from realizing
losses. From the low of October 8,1998 to the high of December
31,1998 the Fund gained 48.45%.
Going forward the Manager anticipates the markets return to
normal conditions and to participate in bargains generated by
the debacle of 1998.
Sincerely,
Aristides Matsis
President and
Portfolio Manager
<PAGE>
EAST END MUTUAL FUNDS, INC.-CAPITAL APPRECIATION SERIES
Schedule of Investments
December 31,1998
Unaudited
COMMON STOCKS- 90.2% Shares Value
Telecommunication - 6.4%
Vocaltec * 500 5,625
Northern Telecom 168 8,421
14,046
Internet - 11.0%
Netscape Communications * 185 11,239
Ascend Communications * 199 13,084
24,323
Consumer Products - 7.6%
Ralston Purina 270 8,674
Nike 200 8,113
16,787
Computer Peripherals - 13.4%
Iomega 3,420 25,009
Western Digital 310 4,669
29,678
Medical Products - 5.0%
Theragenics 660 11,096
Semiconductors Mfg. - 7.2%
Intel 135 16,006
Retail - 22.8%
Home Depot 234 14,317
Wal Mart 165 13,437
TJX 390 11,310
Cost Co 157 11,334
50,398
Computer Services - 3.0%
Inacom 450 6,638
Pharmaceuticals - 5.1%
Bristol Myers 85 11,374
Software Medical - 3.9%
HBO & Co. * 300 8,606
Healthcare HMO - 1.9%
Oxford Health Care * 280 4,165
Education Software - 2.9%
Learning Co. * 250 6,484
Total Investments - 90.2% 199,601
Cash and Other Asset Less Liabilities - 9.8% 21,587
221,188
* Non Income producing during the year.
<PAGE>
EAST END MUTUAL FUNDS, INC.-CAPITAL APPRECIATION SERIES
Statement of Assets and Liabilities
December 31,1998
Unaudited
ASSETS
Investments in securities at value
(cost -$195,262.43) $ 199,601
U.S. Government Securities Short Term 21,587
Deferred Organization Costs 28,989
Total Assets 250,177
LIABILITIES
Due to Manager for Deferred Organization Costs 28,989
Total Liabilities 28,989
NET ASSETS 221,188
Net Assets Consist of:
Capital paid-in 216,850
Net Unrealized Appreciation of Investments 4,338
NET ASSETS $ 221,188
NET ASSET VALUE PER SHARE
(based on 22,904 shares outstanding-
authorized shares with $.001 per share par value) $ 10.01
<PAGE>
EAST END MUTUAL FUNDS, INC.- CAPITAL APPRECIATION SERIES
Statement of Operations
December 31,1998
Unaudited
INVESTMENT INCOME
Income
Dividends $ 706
Total Income 706
Expenses
Investment management fees 1,143
Custodian fees 1,200
Bank charges 31
Total expenses 2,374
Net Investment Loss (1,668)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments -
Change in net unrealized appreciation 4,339
Net realized and unrealized gain on investments 4,339
Net increase in net assets resulting from operations 4,339
<PAGE>
EAST END MUTUAL FUNDS, INC.- CAPITAL APPRECIATION SERIES
Statement of Changes in Net Assets
(Unaudited)
Six Months Year Ended
Ended
Dec. 31,1998 Jun.30,1998
INCREASE (DECREASE)
IN NET ASSETS
From Operations:
Net Investment Loss $ (1,668) $ (6,107)
Net realized gain
(loss) on investments - 16,584
Change in net unrealized
depreciation on investments 4,339 (29,403)
Net increase (decrease) in
net assets resulting from
operations 2,671 (18,926)
Distributions to shareholders
from: Net Investment income - -
Net realized gain - -
Total distributions - -
Share Transactions
Net proceeds from sales of shares - 5,173
Reinvestment of distributions - -
Cost of shares redeemed - (11,514)
Net (decrease) increase in net assets
resulting from share transactions - ( 6,341)
Total decrease in net assets - (25,267)
Net Assets
Beginning of year 209,872 235,139
End of year 221,188 209,872
Other information
Shares:
Sold - 479
Issued in reinvestment of
distributions - -
Redeemed - ( 1,117)
Net (decrease) increase - ( 638)
<PAGE>
EAST END MUTUAL FUNDS, INC.- CAPITAL APPRECIATION SERIES
Financial Highlights
Unaudited
Six Months Year Ended June 30,
Ended
12/31/98 1998 1997 1996
PER SHARE DATA:
Net Asset Value
Beginning of Period $ 9.50 10.34 13.73 10.48
Income From Investment
Operations
Net Investment (Loss)Gain 0.196 (0.290) (0.370) (0.007)
Net Realized and Unrealized
Gain (Loss) on Investments 0.120 (0.550) (2.083) (3.335)
Total From Investment
Operations 0.316 (0.840) (2.453) 3.328
Less Distributions:
Distributions From
Net Realized gain - - 0.937 0.078
Total Distributions - - 0.937 0.078
Net Asset Value End
of Period $ 10.10 9.50 10.34 13.73
Total Return 6.32% (8.124)% (17.870)% 31.760%
Ratios/Supplemental Data:
Ratio of Expenses (After
Reimbursement) to
Average Net Assets(%) 1.280% 3.057% 4.840% 2.770%
Ratio of Net Investment
Loss to Average Net Assets (0.899)% (2.658)% (3.670)% (0.910)%
Portfolio Turnover Rate (%) 0 86.840 26.980 65.810
Average Commission Rate (%) 0 0.080 0.050 0.060
Net Assets,End of Period $221,188 209,872 235,139 284,414
<PAGE>
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