SEMI-ANNUAL REPORT
APRIL 30, 1998
HAVEN CAPITAL MANAGEMENT, INC.
Investment Adviser
THE
HAVEN
FUND
(photo)
<PAGE>
LETTER TO INVESTORS
June 1998
THE
HAVEN
FUND
Dear Shareholder,
The Fund's total return for the fiscal half-year ended April 30 was 14.0%. This
compares with increases in the Standard & Poor's 500 Stock Index of 22.5% and
the Lipper Growth Fund Index of 18.2%. For the three months ended January 31,
the Fund was held back primarily by its energy holdings (which suffered from the
sharp fall in the commodity prices of oil and gas) and secondarily by weakness
in the technology sector of the stock market. We did not believe these weak
areas reflected any fundamental long-term changes, and they have not. For the
three months ended April 30, the Fund's total return was 14.2%, as compared with
13.8% for the Standard & Poor's 500 Stock Index and 12.8% for the Lipper Growth
Fund Index. The Fund thus out-performed the comparatives in its second fiscal
quarter.
We continue to maintain a conservative posture (i.e., maintaining higher than
average cash positions and purchasing companies with relatively low P/E ratios)
that contrasts with the general sentiment as reflected in the U.S. stock market.
The stock market is by nearly every measure at record high valuation levels. To
us this means it is time to be cautious, and at this time we continue to
maintain our cautious posture. If the stock market keeps "soaring," to use a
word favored by journalists, we expect our performance to be somewhat muted. On
the other hand if a stock market "correction" occurs, we hope our declines will
also be muted. In the quarter-year ended October 31 the Fund declined only -0.8%
versus -3.8% for the S&P 500 Stock Index.
The Fund's five stocks which performed best in the half-year ended April 30
were: Lowe's Companies, an expanding building materials retailer; EMC Corp., the
leading manufacturer of stand-alone computer memories; Commerce Bancorp of New
Jersey, a medium-sized regional bank; United Healthcare, a leading health
maintenance organization (HMO); and Valeo, a French auto parts manufacturer
which is gaining global market share (North America included).
THE HAVEN FUND | SEMI-ANNUAL REPORT |
<PAGE>
The Fund's laggards for the half-year were: Gulf Canada Resources, an oil and
gas producer; New Holland N.V., a multinational manufacturer of agricultural
equipment; Silicon Graphics, a manufacturer of high-performance computer work
stations; The Sports Authority, a retailer; and Ocean Energy, another oil and
gas producer. Of these five the two where we have had doubts about the
fundamentals are Silicon Graphics and The Sports Authority. However, Silicon
Graphics' top management was replaced in March, so we think it sensible to watch
for results. In the case of The Sports Authority, management made some mistakes
and the volatility of the athletic shoe business turned out to be worse than
expected. On May 6 the company agreed to merge with Woolworth, so the issue has
in effect become moot.
We welcome new shareholders and thank all for your continued support.
Sincerely,
/s/ Colin C. Ferenbach
Colin C. Ferenbach
President
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
The chart below assumes an initial gross investment of $10,000 made on June 27,
1984 and shows how the Fund and its predecessor have performed. The Fund began
operations on June 23, 1994. Results for the period prior to that date reflect
the performance of HCM Partners, L.P., a limited partnership that was managed by
Haven Capital Management, Inc., the Fund's investment adviser, from 1984 to
1994. On June 23, 1994 the Fund acquired the assets of the Partnership in
exchange for shares of the Fund. Although the Partnership was managed by the
same individuals who manage the Fund, and the Fund is managed in a manner that
is in all material respects equivalent to the management of the Partnership, the
information below should not be viewed as an indication of the future
performance of the Fund. It includes information regarding the Partnership's
operations for periods before the Fund's registration statement became
effective. The Partnership was not registered under the Investment Company Act
of 1940 and therefore was not subject to certain investment restrictions that
are imposed by that Act. If the Partnership had been registered, its
performance might have been adversely affected. In addition, the expenses borne
by the Fund are higher than those borne by the Partnership.
Growth of a $10,000 Investment for the Fund and the Partnership
6/27/84 10/31/84 10/31/89 10/31/94 4/30/98
- ---------------------------------------------------------------------------
The Haven Fund 10,000 10,707 22,183 38,856 77,946
S&P 500 Stock Index 10,000 11,007 26,959 43,698 103,861
Lipper Growth Fund Index 10,000 10,650 23,733 38,299 83,439
- ---------------------------------------------------------------------------
- -----------------------------------------------------
Average Annual Total Return of the Fund
FOR PERIODS ENDED APRIL 30, 1998
- -----------------------------------------------------
One Since
Year Inception*
- -----------------------------------------------------
The Haven Fund 33.1% 22.9%
- -----------------------------------------------------
S&P 500 Stock Index 41.1% 29.8%
- -----------------------------------------------------
Lipper Growth Fund Index 34.9% 23.9%
- -----------------------------------------------------
*June 23, 1994
- -----------------------------------------------------
- ------------------------------------------------------------------------
Average Annual Total Return of the Fund and Partnership
FOR PERIODS ENDED APRIL 30, 1998
- ------------------------------------------------------------------------
One Five Ten Since
Year Year Year Inception*
- ------------------------------------------------------------------------
The Haven Fund 33.1% 18.5% 16.1% 16.0%
- ------------------------------------------------------------------------
S&P 500 Stock Index 41.1% 23.2% 18.9% 19.0%
- ------------------------------------------------------------------------
Lipper Growth Fund Index 34.9% 19.7% 16.3% 16.9%
- ------------------------------------------------------------------------
*June 27, 1984
- ------------------------------------------------------------------------
The S&P 500 Stock Index is an unmanaged index of 500 selected common stocks,
most of which are listed on the New York Stock Exchange. The index is heavily
weighted toward stocks with large market capitalizations and represents
approximately two-thirds of the total market value of all domestic common
stocks.
The Lipper Growth Fund Index is an unmanaged index comprised of the largest 30
of the 864 funds in the Lipper Growth Fund category as of April 30, 1998. Funds
included in the category are, by definition, those which normally invest in
companies whose long-term earnings are expected to grow significantly faster
than the stocks represented in the major unmanaged stock indices.
A direct investment in either the S&P 500 Stock Index or the Lipper Growth Fund
Index is not possible.
Total return calculations reflect fee waivers in effect for 1995 and 1994. In
the absence of fee waivers, total return performance would be reduced. Total
return is based on net change in NAV assuming reinvestment of distributions.
Investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost. Past performance is no guarantee of future results.
THE HAVEN FUND | SEMI-ANNUAL REPORT |
<PAGE>
STATEMENT OF NET ASSETS
April 30, 1998 (Unaudited)
Number
of Shares Value
- ------------------------------------------------------------
COMMON STOCKS 93.17%
AUTO PARTS 4.67%
75,000 Detroit Diesel Corp.<F1> $ 1,725,000
25,000 Valeo SA - (FR) 2,484,310
-----------
4,209,310
-----------
BANKS 11.76%
42,000 Commerce Bancorp, Inc./NJ 2,409,750
30,000 First Commerce Corp. 2,441,250
60,000 HSBC Holdings plc. - (GB) 1,893,026
10,000 Morgan (J.P.) & Co., Inc. 1,312,500
30,000 Wachovia Corp. 2,548,125
-----------
10,604,651
-----------
BUILDING & HOUSING 1.85%
40,000 Owens Corning 1,662,500
-----------
CHEMICALS 3.85%
20,000 du Pont (E.I.) de Nemours & Co. 1,456,250
40,000 Praxair, Inc. 2,012,500
-----------
3,468,750
-----------
CONSUMER NON-DURABLES 3.45%
50,000 Alberto-Culver Co. 1,337,500
35,000 Kimberly-Clark Corp. 1,776,250
-----------
3,113,750
-----------
DRUG & HOSPITAL SUPPLIES 9.56%
20,000 Abbott Laboratories 1,462,500
20,000 Elan Corp. plc. - (IRL)<F1> 1,242,500
25,000 Johnson & Johnson 1,784,375
45,000 Stryker Corp. 2,025,000
30,000 United Healthcare Corp. 2,107,500
-----------
8,621,875
-----------
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
STATEMENT OF NET ASSETS (CONT'D.)
April 30, 1998 (Unaudited)
Number
of Shares Value
- ------------------------------------------------------------
COMMON STOCKS 93.17% (cont'd.)
ELECTRICAL EQUIPMENT 3.77%
11,500 Grainger (W.W.), Inc. $ 1,252,781
75,000 Molex, Inc. 2,146,875
-----------
3,399,656
-----------
ELECTRONICS 12.41%
40,000 Computer Associates International, Inc. 2,342,500
40,000 Electronic Data Systems Corp. 1,720,000
80,000 EMC Corp./Mass.<F1> 3,690,000
30,000 Hewlett-Packard Co. 2,259,375
90,000 Silicon Graphics, Inc.<F1> 1,175,625
-----------
11,187,500
-----------
FURNISHINGS & APPLIANCES 1.73%
30,000 Leggett & Platt, Inc. 1,558,125
-----------
INSURANCE 3.34%
40,000 Mid Ocean Limited - (BER) 3,015,000
-----------
MACHINERY 5.46%
1,250 Bucher Holding AG - (CH) 1,441,724
85,000 New Holland N.V. - (NETH) 2,082,500
60,000 Omniquip International, Inc. 1,402,500
-----------
4,926,724
-----------
MISCELLANEOUS INDUSTRIALS 1.74%
30,000 Avery Dennison Corp. 1,571,250
-----------
OIL - INTERNATIONAL 9.36%
275,000 Gulf Canada Resources Ltd. - (CAN)<F1> 1,460,938
130,000 Ocean Energy, Inc.<F1> 3,185,000
36,000 Royal Dutch Petroleum Co. - (NETH) 2,036,250
30,000 Total SA - (FR) 1,762,500
-----------
8,444,688
-----------
THE HAVEN FUND | SEMI-ANNUAL REPORT |
<PAGE>
STATEMENT OF NET ASSETS (CONT'D.)
April 30, 1998 (Unaudited)
Number
of Shares Value
- ------------------------------------------------------------
COMMON STOCKS 93.17% (cont'd.)
OIL WELL EQUIPMENT & SERVICES 2.30%
25,000 Schlumberger, Ltd. - (NETH ANT) $ 2,071,875
-----------
PAINTS & RELATED PRODUCTS 1.98%
50,000 Sherwin-Williams Co. 1,781,250
-----------
RAILROAD 1.90%
70,000 Wisconsin Central
Transportation Corporation* 1,715,000
-----------
REAL ESTATE INVESTMENT TRUST 1.99%
50,000 General Growth Properties, Inc. 1,793,750
-----------
RETAILING 10.27%
50,000 Borders Group, Inc.<F1> 1,606,250
40,000 Circuit City Stores - Circuit City Group 1,625,000
30,000 Lowe's Companies, Inc. 2,098,125
100,000 Sports Authority (The), Inc.<F1> 1,756,250
90,000 Viking Office Products, Inc.<F1> 2,176,875
-----------
9,262,500
-----------
TELECOMMUNICATIONS 1.78%
70,000 Andrew Corp.<F1> 1,601,250
-----------
Total Common Stocks
(cost $51,820,499) 84,009,404
-----------
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
STATEMENT OF NET ASSETS (CONT'D.)
April 30, 1998 (Unaudited)
Par (000)/Shares Value
- ---------------------------------------------------------------------------
COMMERCIAL PAPER 6.87%
$ 3,400 American Express Credit Corp., 5.53%, 5/4/98 $ 3,398,433
2,800 General Electric Capital Corp., 5.50%, 5/4/98 2,798,717
(cost $6,197,150) -----------
6,197,150
-----------
SHORT-TERM INVESTMENT 0.05%
47,606 Temporary Investment Fund
(cost $47,606) 47,606
-----------
TOTAL INVESTMENTS 100.09%
(cost $58,065,255<F2>) $90,254,160
-----------
Other Liabilities in Excess of Assets (0.09)% (87,008)
-----------
Net Assets applicable to 5,548,658 Shares of Common
Stock issued and outstanding 100.00% $90,167,152
===========
Net Asset Value, offering and redemption price
per share ($90,167,152 / 5,548,658) $16.25
======
The aggregate unrealized appreciation (depreciation) on a tax basis is as
follows:
Gross appreciation.........................$32,940,924
Gross depreciation......................... (752,019)
-----------
Net appreciation...........................$32,188,905<F2>
===========
<F1> Non-income producing securities.
<F2> Also cost for federal income tax purposes.
See Notes to Financial Statements.
COUNTRY ABBREVIATIONS
(BER) - Bermuda (GB) - Great Britain
(CAN) - Canada (IRL) - Ireland
(FR) - France (NETH) - Netherlands
(GER) - Germany (NETH ANT) - Netherlands Antilles
(CH) - Switzerland
THE HAVEN FUND | SEMI-ANNUAL REPORT |
<PAGE>
TOP TEN STOCK HOLDINGS
- --------------------------------------------------
29.4% of the Fund
- --------------------------------------------------
EMC Corp./Mass. 4.1%
- --------------------------------------------------
Ocean Energy, Inc. 3.5%
- --------------------------------------------------
Mid Ocean Limited - (BER) 3.3%
- --------------------------------------------------
Wachovia Corp. 2.8%
- --------------------------------------------------
Valeo SA - (FR) 2.8%
- --------------------------------------------------
First Commerce Corp. 2.7%
- --------------------------------------------------
Commerce Bancorp, Inc. / NJ 2.7%
- --------------------------------------------------
Computer Associates International, Inc. 2.6%
- --------------------------------------------------
Hewlett-Packard Co. 2.5%
- --------------------------------------------------
Viking Office Products, Inc. 2.4%
- --------------------------------------------------
TOTAL 29.4%
- --------------------------------------------------
PERCENT OF TOTAL EQUITIES
BY COUNTRY
(Unaudited)
- -----------------------------
Ireland 1.5%
- -----------------------------
Canada 1.7%
- -----------------------------
Switzerland 1.7%
- -----------------------------
Great Britain 2.3%
- -----------------------------
Netherlands Antilles 2.5%
- -----------------------------
Bermuda 3.6%
- -----------------------------
Netherlands 4.9%
- -----------------------------
France 5.1%
- -----------------------------
United States 76.8%
- -----------------------------
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1998 (Unaudited)
INVESTMENT INCOME:
Dividends $ 481,154
Interest 161,891
- ---------------------------------------------------------------------------
Total Investment Income 643,045
- ---------------------------------------------------------------------------
OPERATING EXPENSES:
Investment advisory fees 249,231
Distribution fees 79,649
Administration and accounting fees 57,249
Amortization of organizational costs 25,137
Transfer agent fees 23,955
Legal fees 15,328
Custodian fees 14,514
Trustees' fees and expenses 14,025
Audit fees 12,160
Printing fees 11,574
Insurance fees 9,328
Blue Sky fees 6,907
Miscellaneous expenses 3,567
- ---------------------------------------------------------------------------
Total Expenses 522,624
- ---------------------------------------------------------------------------
Net Investment Income 120,421
- ---------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) FROM:
Investments 5,662,937
Foreign currency transactions (4,901)
NET INCREASE IN UNREALIZED APPRECIATION ON:
Investments 5,258,361
Translation of assets and liabilities in foreign currency 2,459
- ---------------------------------------------------------------------------
Net realized and unrealized gain from
investments and foreign currency 10,918,856
- ---------------------------------------------------------------------------
Net increase in net assets resulting from operations $11,039,277
===========================================================================
See Notes to Financial Statements.
THE HAVEN FUND | SEMI-ANNUAL REPORT |
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997
- ------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 120,421 $ 606,048
Net realized gain on investments and foreign
currency transactions 5,658,036 7,911,410
Net change in unrealized appreciation
on investments and translation of
other assets and liabilities denominated
in foreign currencies 5,260,820 8,411,721
- ------------------------------------------------------------------------------
Net increase in net assets from operations 11,039,277 16,929,179
- ------------------------------------------------------------------------------
DIVIDENDS PAID TO SHAREHOLDERS:
From net investment income (244,888) (542,627)
From net realized gains (7,848,458) (6,502,581)
- -----------------------------------------------------------------------------
Total dividends paid to shareholders (8,093,346) (7,045,208)
- -----------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 2,020,224 7,649,818
Value of shares issued in reinvestment of dividends 5,877,615 4,399,820
Cost of shares redeemed (5,445,194) (4,260,734)
- ------------------------------------------------------------------------------
Increase in net assets from capital
share transactions 2,452,645 7,788,904
- ------------------------------------------------------------------------------
Total increase in net assets 5,398,576 17,672,875
- ------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 84,768,576 67,095,701
- ------------------------------------------------------------------------------
End of period $90,167,152 $84,768,576
==============================================================================
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
(For a Share Outstanding APRIL 30, 1998 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
Throughout each Period) (UNAUDITED) 1997 1996 1995 1994<F1>
- ----------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.83 $14.04 $11.67 $10.65 $10.00
- ----------------------------------------------------------------------------------------------------------------------
INCREASE FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.06 0.08 0.12 0.04
Net realized and unrealized gains on
investments and foreign currency
transactions 1.96 3.13 3.07 1.28 0.61
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.99 3.19 3.15 1.40 0.65
LESS DISTRIBUTIONS:
Dividends paid to shareholders:
From net investment income (0.05) (0.05) (0.08) (0.15) _
From net realized gains (1.52) (1.35) (0.70) (0.23) _
- ----------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders (1.57) (1.40) (0.78) (0.38) _
NET ASSET VALUE, END OF PERIOD $16.25 $15.83 $14.04 $11.67 $10.65
======================================================================================================================
TOTAL RETURN 14.00% 24.90% 28.25% 13.65% 6.50%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (in 000s) $90,167 $84,769 $67,096 $55,579 $45,332
Ratios of expenses to average net assets 1.26% 1.33% 1.59% 1.53%<F2> 1.20%<F2><F3>
Ratios of net investment income to
average net assets 0.23% 0.78% 0.58% 1.14%<F2> 1.10%<F2><F3>
Portfolio turnover rate 49% 57% 67% 77% 27%
Average commission rate paid $0.0448 $0.0633 $0.0591 _ _
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> The Haven Fund commenced operations on June 23, 1994.
<F2> Without fee waivers, the ratio of operating expenses to average daily net
assets would have been 1.51% and 1.43% (annualized) and the ratio of net
investment income to average daily net assets would have been 1.03% and
0.86% (annualized).
<F3> Annualized.
See Notes to Financial Statements.
THE HAVEN FUND | SEMI-ANNUAL REPORT |
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
The Haven Capital Management Trust (the "Trust") is an investment company
registered under the Investment Company Act of 1940, as amended. It is organized
as a Delaware business trust and is an open-ended, diversified, management
series investment company which currently consists of The Haven Fund (the
"Fund").
2. SIGNIFICANT ACCOUNTING POLICIES
a)PORTFOLIO VALUATION: Securities for which market quotations are readily
available are valued at market value, which is determined by using the last
reported sale price, or if no sales are reported, and in the case of certain
securities traded over-the-counter, the mean between the last reported bid and
asked prices. Short-term obligations having remaining maturities of 60 days or
less are valued at either amortized cost or original cost plus accrued interest
receivable, both of which approximate market value. All other securities and
assets, including any restricted and/or illiquid securities, will be valued at
their fair market value as determined pursuant to procedures adopted by the
Trustees.
b) FOREIGN CURRENCY TRANSACTIONS: Transactions denominated in foreign
currencies are recorded in the Fund's records at the current prevailing exchange
rate. Asset and liability accounts that are denominated in a foreign currency
are adjusted to reflect the current exchange rate at the end of the period.
Transaction gains or losses resulting from changes in the exchange rate during
the reporting period or upon settlement of the foreign currency transaction are
reported in operations for the current period. Foreign security and currency
transactions may involve certain considerations and risks not typically
associated with those of U.S. dollar-denominated transactions.
c) SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
recorded on trade-date. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on an accrual
basis.
Realized gains or losses on sales of investments are determined on the
identified cost basis for financial reporting and income tax purposes.
d) DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income are
declared and paid semi-annually. Any net realized capital gains will be
distributed annually. Income distributions and capital gain distributions are
determined in accordance with federal tax regulations which may differ from
generally accepted accounting principles. The differences primarily relate to
investments in forward contracts and certain securities sold at a loss or gain.
e) FEDERAL TAXES: The Fund is a separate entity for federal income tax
purposes. It is the Fund's policy to qualify as a regulated investment company
by complying with the requirements of the Internal Revenue Code applicable to
regulated investment companies, and to pay out most of its net investment income
and net capital gains to its shareholders. Therefore, no federal income or
excise tax provision is required.
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONT'D.)
f) ORGANIZATION COSTS: Costs incurred in connection with the Fund's
organization and registration are amortized on a straight-line basis over the
period of benefit, not to exceed 60 months.
g) USE OF ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
3. FINANCIAL INSTRUMENTS
The Fund may trade financial instruments with off-balance sheet risk in the
normal course of the investing activities and to assist in managing exposure to
market risks such as interest rates and foreign currency exchange rates. The
financial instruments include written options, forward foreign currency exchange
contracts and futures contracts. The notional or contractual amounts of these
instruments represent the investment the Fund has in particular classes of
financial instruments and do not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions are considered.
At April 30, 1998, the Fund did not hold any financial instruments with off-
balance sheet risk.
4.FEES AND RELATED PARTY TRANSACTIONS
a) INVESTMENT ADVISORY FEES: Under an agreement between the Trust on behalf of
the Fund and Haven Capital Management, Inc. (the "Adviser"), the Adviser serves
as the Fund's investment adviser. For investment advisory services, the Adviser
receives monthly fees at the annual rate of 0.60% of the Fund's average daily
net assets.
b) TRUSTEES' FEES: Fees were paid to the Trustees and/or Officers of the Fund
for the six months ended April 30, 1998, but no fees were paid to any Trustee
and/or Officer of the Fund who is also an employee of the Adviser.
c) DISTRIBUTION FEES: The Trust, on behalf of the Fund, has adopted a Plan of
Distribution (the "Plan") pursuant to Rule 12b-1 under the Investment Company
Act of 1940, as amended. Under the Plan, the Fund may spend no more each year
than 0.25% of its average daily net assets to finance activity primarily
intended to result in the sale of shares.
Pursuant to the Distribution Agreement, as compensation for its services, the
Fund pays Sunstone Distribution Services, LLC, payable monthly in arrears, at
the annual rate of 0.10% per annum of the Fund's average daily net assets;
provided that such compensation shall be subject to a minimum monthly fee of
$7,083 (exclusive of out-of-pocket expenses). The Fund also pays Hewes
Communications, Inc. a monthly fee of $3,500 (exclusive of out-of-pocket
expenses) as compensation for services under the Plan.
THE HAVEN FUND | SEMI-ANNUAL REPORT |
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONT'D.)
d) ADMINISTRATOR AND TRANSFER AGENT FEES: As compensation for its
administrative and accounting services, the Fund pays PFPC a fee, at the annual
rate of 0.10% of the Fund's average daily net assets, with a minimum
monthly fee of $8,333 (exclusive of out-of-pocket expenses). As transfer agent
of the Fund, PFPC receives a minimum monthly fee of $3,000 (exclusive of out-of-
pocket expenses).
e) CUSTODIAN FEES: PNC Bank and Chase Manhattan Bank, N.A., serve as custodian
and sub-custodian for the Fund's U.S. and foreign assets, respectively. As
compensation for its custodian services, the Fund pays PNC Bank a minimum
monthly fee of $1,500 (exclusive of out-of-pocket expenses).
5.CAPITAL STOCK
The Fund is authorized to issue unlimited shares of common stock, par value
$.001 per share. Transactions in shares of the Fund for the six months ended
April 30, 1998, and the year ended October 31, 1997, were as follows:
1998 1997
- ----------------------------------------------------------------------------
Sale of shares 134,401 527,437
Shares issued to shareholders in
reinvestment of dividends 406,474 323,802
Shares repurchased (348,448) (273,510)
- ----------------------------------------------------------------------------
Net increase 192,427 577,729
Shares outstanding:
Beginning of period 5,356,231 4,778,502
- ----------------------------------------------------------------------------
End of period 5,548,658 5,356,231
============================================================================
6. COMPONENTS OF NET ASSETS
At April 30, 1998, Net Assets consisted of the following:
- ----------------------------------------------------------------------------
Capital paid-in $52,300,243
Accumulated net realized gain on investments
and foreign currency transactions 5,584,344
Undistributed net investment income 93,054
Net unrealized appreciation of investments 32,188,905
Net unrealized appreciation on foreign
currency transactions 606
- ----------------------------------------------------------------------------
$90,167,152
============================================================================
7. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 1998, the cost of securities purchased and
proceeds from securities sold, excluding short-term obligations, were
$19,171,924 and $26,540,058, respectively.
| SEMI-ANNUAL REPORT | THE HAVEN FUND
<PAGE>
| THIS PAGE INTENTIONALLY LEFT BLANK. |
<PAGE>
THE HAVEN FUND
P.O. BOX 8903
WILMINGTON, DE 19899-8903
FOR FUND INFORMATION,
PRICES AND LITERATURE, CALL
1-800-844-4836
FOR ACCOUNT BALANCES AND
OTHER INFORMATION ABOUT YOUR HAVEN FUND ACCOUNT, CALL
1-800-850-7163
THIS REPORT IS SUBMITTED FOR THE GENERAL INFORMATION OF SHAREHOLDERS OF THE
HAVEN FUND. IT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS
UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS FOR THE HAVEN FUND.
THE PROSPECTUS INCLUDES MORE COMPLETE INFORMATION ABOUT MANAGEMENT FEES AND
EXPENSES, INVESTMENT OBJECTIVES, RISKS AND OPERATING POLICIES OF THE HAVEN FUND.
PLEASE READ THE PROSPECTUS CAREFULLY.
HA4100698
<PAGE>
