<PAGE> 1
[FUNDS IV TRUST LOGO]
February 23, 1996
Dear Shareholder:
On behalf of everyone at FUNDS IV Trust, we are pleased to send you this
semi-annual report on the financial condition of the FUNDS IV Trust for the six
months ended December 31, 1995. Included are investment summaries and detailed
financial information for the FUNDS IV Funds and each portfolio of investments.
An overview of economic factors has been included to assist in your financial
investments.
ECONOMIC REVIEW AND MARKET OUTLOOK
STOCK AND BOND MARKETS SURGE IN 1995
Modest economic growth and contained inflationary pressures encouraged
investors to buy both stocks and bonds during the second half of 1995. Bond
prices were pushed higher as long-term Treasury yields fell below 6.0%. The
rally in bonds was further fueled by the Federal Reserve Board's action of
cutting the Fed funds rate 25 basis points to a target of 5.5%. The bond market
also benefited from investor optimism that Congress and the president would come
to an agreement that would eventually balance the budget and reduce the federal
deficit.
The bond market rally helped fuel a strong equity market as well. The drop
in rates not only helped to directly boost profits for a host of financial and
utility issues, but also increased the price investors were willing to pay for
the future earnings of stocks in general. This had an especially powerful impact
on selected stocks whose future cash flows were deemed to be most predictable.
BUDGET ACCORD COULD MEAN LOWER INTEREST RATES IN 1996
We are cautiously constructive on the bond market going into 1996. However,
counting on another drop in long-term interest rates like that seen in the
second half of 1995 is not recommended. However, short-term rates (the so-called
"front-end" of the yield curve) could play catch-up in 1996. Though we believe
the economy will continue to experience slow growth and low inflation during
1996, we think the market will need another catalyst to move rates lower. The
direction of interest rates for 1996 will be largely dependent on the fiscal
policy agreed upon by Congress and the president. If an agreement can be reached
that will result in a viable budget that contains provisions for balancing the
budget over a reasonable time and reducing the massive federal deficit, interest
rates should move lower. However, if an agreement is not reached over the near
term, we may experience a sharp drop in bond prices resulting in higher interest
rates.
While earnings growth in 1996 is not forecast to match the robust gains
seen in 1995, a high single-digit percentage year-to-year profit increase would
be supportive of additional gains in stocks. Despite 1995's market surge and the
more subdued 1996 profit outlook, most stocks still have valuations that seem
reasonable in the context of today's low interest-rate environment.
Finally, three sources of demand may help stocks in 1996: 1) continued
inflow into stock mutual funds from individuals whose stock exposure is still
well below historical extremes; 2) continued merger and buyback activity on the
heels of 1995 when $400 billion in stock effectively left the market;
<PAGE> 2
and 3) a resurgence in demand from underinvested foreigners, likely to be
emboldened by a further rise in the U.S. dollar.
A cautionary word about fixed income return expectations for 1996:
It is very unlikely and we do not anticipate that fixed income market
returns in 1996 will match or even approach the double-digit total returns
generated in 1995 given the current low level of interest rates. We would
anticipate, even in a somewhat favorable economic and market environment, that
fixed income returns in 1996 are likely to equal coupon return plus one or two
percent price appreciation.
A cautionary word about equity return expectations for 1996:
It is not likely, nor do we expect to see equity market index returns in
1996 that match or even approach those generated by the Standard & Poor 500
Stock Index in 1995. The 37.5% return in 1995 was the best showing for the S&P
500 in 37 years and was exceptional by any measure. We believe, if 1996 proves
to be a positive market environment for stocks, that the annual return on
equities is likely to approximate the normalized long-term annual return rate
for large company stocks, as reported by Ibbottson Associates, of 10.2%.
CASH RESERVE MONEY MARKET FUND
For the six months ended December 31, 1995, the Service Class of The FUNDS
IV Cash Reserve Money Market Fund ranked 59 out of 136 Institutional Money Funds
as reported by Lipper Analytical Services with an annualized total return of
5.77%.
On July 6, 1995 in response to waning inflation, the Federal Reserve
lowered interest rates by 25 basis points. The Fund achieved its healthy
performance during this environment of falling interest rates by investing in
longer-term fixed rate obligations and maintaining a longer average maturity. On
July 6, 1995 the Fund's weighted average maturity was 73 days.
During the end of the fourth quarter, the economy began to show signs of a
slowdown. In order to simulate the economy, on December 19, 1995, the Federal
Reserve lowered interest rates by 25 basis points. The Fund was well positioned
for this additional rate cut, as the portfolio strategy included maintaining a
longer weighted average maturity. On December 19, 1995, the Fund's weighted
average maturity was 76 days. And on December 31, 1995 it was 71 days.
The Fund's above average performance can be attributed primarily to
investing in longer-term obligations (such as six month commercial paper and
bankers' acceptances) during this period of compelling economic fundamentals of
slower growth and low inflation.
We believe your Fund is well positioned to continue to achieve above
average performance results for 1996.
Michael W. Fields C.I.U.--Fixed Income AMR Investment Services, Inc.
SHORT-TERM TREASURY INCOME FUND
The FUNDS IV Short-Term Treasury Income Fund's objective is to provide
investors with as high a level of current income as is consistent with liquidity
and safety of principal.
The Fund is invested exclusively in short-term U.S. Treasury securities,
and U.S. Treasury backed money market reserves. The weighted average maturity of
the Fund will generally range between two and three years, depending upon the
returns generated by the short-term U.S. Treasury securities. For the six-month
period ended December 31, 1995, the Fund generated a total return to investors
of 4.3%,
<PAGE> 3
and ended the period with a weighted average maturity of 2.9 years. During the
last six months of 1995, the yield on three-year U.S. Treasury Notes rose to a
high of 6.2% in August, before ending the year at the low of 5.25%. The duration
of the Fund (a key measure of the price sensitivity of a portfolio of
fixed-income securities) ranged from a defensively positioned low of 101% of the
index duration in August when interest rates were rising, to a high of 121% of
the index duration in October when interest rates continued their downward
trend. The Fund ended the year 1995 with a duration of 110% of the index. Our
proprietary Bond Risk Modes score is used to guide changes in overall Fund
strategy and duration relative to the benchmark index. For the six-month period
ended December 31, 1995, the Fund performance trailed slightly the Lehman Mutual
Fund Short (1-5) year U.S. Treasury Index by approximately 20 basis points after
all fees and expenses.
The portfolio manager for The Short-Term Treasury Income Fund is Ms. Janet
L. Mullen.
INTERMEDIATE BOND INCOME FUND
The FUNDS IV Intermediate Bond Income Fund's objective is to provide
investors with a high level of current income as is consistent with managing for
total return by investing in a portfolio of intermediate maturity government and
investment grade corporate securities.
The Intermediate Bond Income Fund produced a total return of 5.02% for the
six months July 1, 1995 to December 31, 1995. The principal factor impacting
Fund performance during the period was changes in the levels of interest rates.
During the first half of the fiscal year, the Net Asset Value (NAV) per share
rose as bond prices moved higher in response to falling interest rates. Holdings
within the Fund generally performed well although Fund performance modestly
trailed the 5.23% return of its benchmark index, the Lehman Intermediate
Government/Corporate Bond Index. The Fund's solid performance is attributed to
its relatively longer duration and maturity structure during a period of
declining interest rates.
At December 31, 1995, the Fund had approximately 96% of its net assets
invested in U.S. Government obligations and corporate securities rated "A" or
higher by Moody's Investor Services, Inc. and/or Standard and Poor's
Corporation.
On December 31, 1995 the average maturity of the portfolio was 6.1 years
and the average portfolio quality rating at the end of the period was "AAA".
The portfolio manager for The Intermediate Bond Income Fund is Mr. Brad D.
Eppard.
BOND INCOME FUND
The FUNDS IV Bond Income Fund's objective is to provide investors with as
high a level of current income as is consistent with managing for total return
by investing in fixed income securities comprised primarily of Treasuries and
investment grade corporate bonds. The major difference between the FUNDS IV Bond
Income Fund and the FUNDS IV Intermediate Bond Income Fund is the Bond Income
Fund's higher exposure to bonds with maturities longer than 10 years.
The Bond Income Fund produced a total return net of expenses of 6.80% for
the six months July 1, 1995 to December 31, 1995, performing well versus its
benchmark index, the Lehman Government/Corporate Bond Index which returned 6.66%
for the same period. The Fund is managed for total return in an effort to
enhance Fund performance. The principal factor impacting Fund performance during
the period was changes in the levels of interest rates. Net Asset Value (NAV)
per share rose as bond prices rebounded strongly as interest rates fell on
economic weakness and reduced inflationary fears.
<PAGE> 4
On December 31, 1995 the average maturity of the portfolio was 9.2 years
and the Fund had approximately 97% of its net assets invested in U.S. Government
obligations and corporate securities rated "A" or higher by Moody's Investor
Services, Inc. and/or Standard and Poor's Corporation resulting in an average
portfolio quality rating at the end of the period of "AAA".
The portfolio manager for The Bond Income Fund is Mr. Brad D. Eppard.
STOCK APPRECIATION FUND
The objective of The FUNDS IV Stock Appreciation Fund is to seek long-term
capital appreciation through investment in a diversified portfolio of common
stocks. Permissible investments include U.S. common stocks and foreign stocks
represented by American Depository Receipts (ADR's). Stocks are selected based
on a number of factors that include fundamental business outlook, valuation
relative to other companies in the same industry, and the company's own
historical norms and earnings momentum. Substantial short-term cash reserves (up
to 35%) may be held as a defensive measure when stock market risk appears high.
At December 31, 1995, the Fund held modest levels of cash and cash
equivalents. The Fund held approximate market weightings in the energy, health
care, raw materials, technology, transportation, and utilities sectors. The Fund
held higher than market weightings in the capital goods, consumer services,
consumer durables, and finance sectors, while maintaining less than market
weightings in the consumer non-durable, miscellaneous, and retail sectors. On
average, the Fund's holdings sell at a price equal to their intrinsic value as
determined by the Investment Adviser (the S&P 500 Index, meanwhile is selling at
a 11% discount) and are displaying positive earnings momentum. The average
projected growth rate for the stocks in the Fund is 12% (versus the S&P 500 of
10%). The average price/earnings multiple is about equivalent to the market's.
The current dividend yield of 2.0% slightly trails the S&P 500 of 2.3%. The
dollar weighted median market capitalization for the Fund is $20.1 billion. The
average return on equity is 20.0% (versus 17.4% for the S&P 500).
The portfolio manager of The Stock Appreciation Fund is Mr. Paul D. Worth.
AGGRESSIVE STOCK APPRECIATION FUND
The objective of The FUNDS IV Aggressive Stock Appreciation Fund is to
aggressively seek long-term capital appreciation through investment in a
diversified portfolio of common stocks. Permissible investments include U.S.
common stocks and foreign stocks represented by American Depository Receipts
(ADR's). While the Fund will always hold a broad array of larger capitalization
stocks (stocks with market capitalization of approximately $4 billion and
greater), there will often be an emphasis on investing in mid-capitalization
issues, and to a much lesser extent, smaller-capitalization stocks
(approximately $1 billion and under). Stocks are selected based on a number of
factors including fundamental business outlook, valuation relative to other
companies in the same industry, and the company's own historical norms and
earnings momentum. In addition, the Fund may hold considerable positions
(relative to the market) in broadly-defined economic sectors whose growth
potential is not reflected in current stock prices. Substantial short-term cash
reserves may be held during defensive periods when stock market risk appears
high.
At December 31, 1995, the Fund was fully-invested as it had been through
much of the second half of the calendar year. The Fund held approximate market
weightings in the consumer durables, technology, and transportation sectors. The
Fund held higher than market weightings in the capital goods, consumer services,
finance, raw materials, and retail sectors, while maintaining less than market
weightings the in consumer non-durable, miscellaneous, energy, health care, and
utilities sectors. On
<PAGE> 5
average, the Fund's holdings sell at a price equal to their intrinsic value as
determined by the Investment Adviser (the S&P 500 Index, meanwhile is selling at
a 11% discount) and are displaying positive earnings momentum. The average
projected growth rate for the stocks in the Fund is 15% (versus the S&P 500 of
10%). The average price/earnings multiple is 22.1 (versus the S&P 500 of 17.4).
The current dividend yield of 1.3% is less than the S&P 500 2.3%. The dollar
weighted median market capitalization for the Fund is $5.6 billion. The average
return on equity is 18.0% (versus 17.4% for the S&P 500). The Fund remains
well-exposed to selected stocks in the mid-capitalization area of the market, an
area which provides a particularly compelling reward/risk tradeoff -- compared
to the large-cap segment -- given the valuation of secondary stocks relative to
their growth prospects.
The portfolio manager for The Aggressive Stock Appreciation Fund is Mr.
Paul D. Worth.
VALUE STOCK APPRECIATION FUND
The objective of The FUNDS IV Value Stock Appreciation Fund is to seek
long-term capital appreciation and dividend income through investment in a
diversified portfolio of common stocks (and securities convertible into common
stocks) of domestic companies. The Fund may also invest, to a far lesser extent,
in securities of foreign companies, primarily through securities represented by
American Depository Receipts (ADR's).
The Fund employs a "value style" of equity management. Stocks are selected
for purchase when they sell at a discount to their underlying "intrinsic" value.
We determine a stock's intrinsic value by discounting its expected future
dividends to the present value of such dividends. This process of calculating a
stock's intrinsic value is frequently referred to as a "dividend discount
model". Holdings are often characterized by stocks with relatively low
price/earnings ratios, and/or low price/cash flow ratios. Another characteristic
may be higher-than-average dividend yield. Quite often, the stocks will fall
into categories of being under-owned or "out of favor". Equity investments are
selected from a pool of high-quality large, medium, and small capitalization
stocks. The determination of high-quality is based on the Investment Adviser's
assessment of a company's financial strength, size and earnings variability.
Stocks are purchased with the long-term time horizon in mind and are generally
sold when their market price rises above intrinsic value and/or their underlying
fundamentals begin to deteriorate.
At December 31, 1995, the Fund held modest levels of cash and cash
equivalents as was the case throughout the first half of the calendar year. On
average, the Fund's holdings sell at a 21% discount to their intrinsic value as
determined by the Investment Adviser (the S&P 500 Index, meanwhile is selling at
a 11% discount) and are displaying positive earnings momentum. The average
growth rate for the stocks in the Fund is 10% (versus the S&P 500 of 10%). The
average price/earnings multiple is about equivalent to the market's. The current
dividend yield of 3.0% slightly exceeds the S&P 500 of 2.3%. Two of the Fund's
other key characteristics remain superior to the market. The average return on
assets is 9.5% (versus 3.0% for the S&P 500) and average return on equity is
25.2% (versus 17.4% for the S&P 500).
The portfolio manager for The Value Stock Appreciation Fund is Mr. Stuart
Hopkins.
<PAGE> 6
(This Page Intentionally Left Blank)
<PAGE> 7
FUNDS IV TRUST
THE CASH RESERVE MONEY MARKET FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS** AMOUNT (NOTE 2A)
- ---------- ----------- ------------
<S> <C> <C> <C>
CORPORATE NOTES -- 53.0%
BANKING SERVICES -- 16.2%
TBW-1/D-1 BanPonce Corp. VR Medium Term Note 6.00%,
02/16/96(a)........................................ $13,000,000 $ 13,000,000
TBW-1/D-1 BanPonce Corp. VR Medium Term Note 5.91%,
12/18/96(a)........................................ 3,000,000 3,000,000
A-1/P-1 Chemical Banking Corp. VR Medium Term Note 6.24%,
04/15/96(a)........................................ 5,410,000 5,414,240
TBW-1/P-1 Shawmut Bank Connecticut, N.A. VR Medium Term Note
5.68%, 03/25/96(a)................................. 5,000,000 5,000,000
TBW-1/P-1 Shawmut Bank Connecticut, N.A. VR Medium Term Note
5.90%, 05/10/96(a)................................. 8,000,000 8,000,000
TBW-1/P-1 Wells Fargo & Co. VR Medium Term Note 5.79%,
01/19/96(a)........................................ 13,000,000 12,999,871
----------
47,414,111
----------
BUSINESS CREDIT -- 5.1%
P-1/TBW-1 Heller Financial, Inc. VR Demand Master Note 5.94%,
10/25/96(a)........................................ 15,000,000 15,000,000
----------
PERSONAL CREDIT -- 9.4%
P-1/F-1 American Honda Finance Corp. VR Medium Term Note
5.93%, 02/06/96(a)................................. 14,000,000 14,000,000
P-1/F-1 General Motors Acceptance Corp. VR Medium Term Note
6.01%, 02/22/96(a)................................. 5,500,000 5,499,732
P-1/F-1 General Motors Acceptance Corp. VR Medium Term Note
6.03%, 03/01/96(a)................................. 8,000,000 7,999,611
----------
27,499,343
----------
SECURITIES FIRMS -- 22.3%
A-1/P-1 Bear Stearns Cos., Inc. VR Medium Term Note 5.68%,
01/17/96(a)........................................ 13,000,000 13,000,000
A-1+/P-1 Goldman Sachs Group Limited Partnership Promissory
Note 5.81%, 03/04/96(b)............................ 16,000,000 16,000,000
TBW-1/A-1 Lehman Brothers Holdings, Inc. VR Demand Master Note
5.99%, 08/22/96(a)................................. 14,000,000 14,000,000
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
1
<PAGE> 8
FUNDS IV TRUST
THE CASH RESERVE MONEY MARKET FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS** AMOUNT (NOTE 2A)
- --------- ---------- -----------
<S> <C> <C> <C>
CORPORATE NOTES -- (CONTINUED)
SECURITIES FIRMS -- (CONTINUED)
A-1+/P-1 Merrill Lynch & Co., Inc. VR Medium Term Note 5.79%,
01/14/97(a)........................................ $16,000,000 $ 15,996,597
A-1+/P-1 Morgan Stanley Group, Inc. VR Medium Term Note 6.19%,
07/02/96(a)........................................ 6,000,000 6,007,422
------------
65,004,019
------------
TOTAL CORPORATE NOTES................................ 154,917,473
------------
COMMERCIAL PAPER -- 7.0%
BANKING SERVICES -- 1.7%
TBW-1/P-1 A B Spintab, 5.79% 04/17/96.......................... 5,000,000 4,916,035
------------
SECURITIES FIRMS -- 5.3%
TBW-1/A1 PaineWebber Group, Inc., 5.68% 08/23/96.............. 16,000,000 15,430,778
------------
TOTAL COMMERCIAL PAPER............................... 20,346,813
------------
YANKEE CERTIFICATES OF DEPOSIT -- 19.9%
A-1/P-1 Banca CRT Financial Corp. VR 5.68%, 09/24/96(a)...... 14,000,000 14,000,000
A-1/P-1 Industrial Bank of Japan, Ltd. New York 6.20%,
02/15/96........................................... 14,000,000 14,000,000
TBW1/P-1 Merita Bank New York VR Demand Deposit 5.875%,
10/18/96(a)........................................ 15,000,000 15,000,000
TBW-1/P-1 Postipankki Bank, Ltd. VR Demand Deposit 5.81%,
09/20/96(a)........................................ 15,000,000 15,000,000
------------
TOTAL YANKEE CERTIFICATES OF DEPOSIT................. 58,000,000
------------
BANKERS' ACCEPTANCES -- 19.9%
A-1/P-1 Bank of Tokyo, Ltd. Los Angeles 6.08%, 02/23/96...... 10,000,000 9,912,108
A-1/P-1 Dai-Ichi Kangyo Bank, Ltd. New York 6.19%,
04/15/96........................................... 10,000,000 9,831,417
A-1/P-1 Dai-Ichi Kangyo Bank, Ltd. Los Angeles 5.86%,
05/20/96........................................... 5,000,000 4,889,167
A-1/P-1 Industrial Bank of Japan, Ltd. New York 5.88%,
04/30/96........................................... 2,000,000 1,961,800
A-1/P-1 Mitsubishi Bank, Ltd. New York 6.04%, 04/04/96....... 6,000,000 5,908,193
A-1/P-1 Mitsubishi Bank, Ltd. New York 5.80%, 05/22/96....... 10,000,000 9,777,533
A-1/P-1 Sanwa Bank, Ltd. New York 6.07%, 02/06/96............ 5,000,000 4,970,100
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
2
<PAGE> 9
FUNDS IV TRUST
THE CASH RESERVE MONEY MARKET FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS** AMOUNT (NOTE 2A)
- --------- ------------ ------------
<S> <C> <C> <C>
BANKERS' ACCEPTANCES -- (CONTINUED)
A-1/P-1 Sanwa Bank, Ltd. New York 5.87%, 02/20/96............ $ 5,000,000 $ 4,960,278
A-1/P-1 Sanwa Bank, Ltd. New York 5.87%, 03/15/96............ 6,000,000 5,929,700
------------
TOTAL BANKERS' ACCEPTANCES........................... 58,140,296
------------
TIME DEPOSIT -- 0.2%
A-1/P-1 Bank Brussels Lambert Cayman 5.875%, 01/02/96........ 460,867 460,867
------------
TOTAL INVESTMENTS -- 100.0% (COST $291,865,449)+..... 291,865,449
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.0%........ (62,493)
------------
NET ASSETS -- 100.0%................................. $291,802,956
============
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
3
<PAGE> 10
FUNDS IV TRUST
THE SHORT-TERM TREASURY INCOME FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
---------- ------------ -----------
<S> <C> <C> <C>
U.S. TREASURY NOTES -- 98.0%
8.00%, 01/15/97....................................... $1,000,000 $ 1,015,686 $ 1,027,950
5.50%, 07/31/97....................................... 2,000,000 1,992,613 2,010,700
7.375%, 11/15/97...................................... 750,000 751,681 778,365
5.125%, 04/30/98...................................... 825,000 811,591 823,597
5.375%, 05/31/98...................................... 250,000 242,931 250,910
8.25%, 07/15/98....................................... 200,000 207,084 214,264
5.875%, 08/15/98...................................... 700,000 701,436 711,207
7.125%, 10/15/98...................................... 1,000,000 1,011,629 1,048,690
5.50%, 11/15/98....................................... 4,000,000 4,018,354 4,029,200
6.50%, 04/30/99....................................... 500,000 502,073 518,655
6.75%, 05/31/99....................................... 1,500,000 1,471,500 1,567,485
7.75%, 11/30/99....................................... 1,500,000 1,551,360 1,626,525
6.375%, 01/15/00...................................... 1,750,000 1,750,000 1,815,572
7.75%, 01/31/00....................................... 1,000,000 1,005,051 1,087,250
------------ -----------
TOTAL U.S. TREASURY NOTES............................. 17,032,989 17,510,370
------------ -----------
MONEY MARKET FUND*** -- 0.5%
Federated U.S. Treasury Cash Reserve Fund............. 97,768 97,768 97,768
------------ -----------
TOTAL INVESTMENTS -- 98.5%............................ $ 17,130,757 17,608,138
==========
OTHER ASSETS LESS LIABILITIES -- 1.5%................. 259,403
-----------
NET ASSETS -- 100.0%.................................. $17,867,541
==========
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
4
<PAGE> 11
FUNDS IV TRUST
THE INTERMEDIATE BOND INCOME FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS* AMOUNT COST (NOTE 2A)
- -------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
U.S. TREASURY NOTES -- 49.0%
5.875%, 07/31/97.......................... $ 2,000,000 $ 2,014,718 $ 2,021,020
5.125%, 03/31/98.......................... 6,000,000 5,970,371 5,993,819
6.125%, 05/15/98.......................... 7,000,000 7,071,523 7,143,639
8.875%, 11/15/98.......................... 7,000,000 7,657,756 7,668,989
6.75%, 05/31/99........................... 10,000,000 9,974,365 10,449,899
7.50%, 10/31/99........................... 8,000,000 8,156,978 8,593,440
7.75%, 02/15/01........................... 5,000,000 5,156,448 5,523,700
6.375%, 08/15/02.......................... 8,000,000 7,667,295 8,401,439
7.875%, 11/15/04.......................... 7,000,000 7,626,352 8,105,860
------------- ------------
TOTAL U.S. TREASURY NOTES................. 61,295,806 63,901,805
------------- ------------
U.S. GOVERNMENT AGENCY OBLIGATION -- 3.0%
Federal Farm Credit Bank Medium Term Note
8.13%, 01/17/96(c)...................... 3,850,000 3,852,526 3,850,000
------------- ------------
CORPORATE BONDS AND NOTES -- 46.4%
AEROSPACE/DEFENSE -- 3.1%
A+/A2 International Lease Finance Corp. Medium
Term Note 8.26%, 02/15/05............... 3,500,000 3,768,566 3,981,250
------------- ------------
BANKING SERVICES -- 5.5%
A-/A3 First Union Corp. 6.55%, 10/15/05(c)...... 4,000,000 3,971,070 4,115,000
A/A2 NationsBank Corp. 7.50%, 02/15/97......... 3,000,000 2,998,492 3,067,500
------------- ------------
6,969,562 7,182,500
------------- ------------
CONSUMER PRODUCTS -- 0.3%
A-/A3 International Paper Co. 9.70%, 03/15/00... 400,000 431,302 457,500
------------- ------------
ELECTRONICS -- 2.4%
AA/Aa3 Motorola, Inc. 6.50%, 09/01/05(c)......... 3,000,000 3,000,000 3,150,000
------------- ------------
FINANCIAL SERVICES -- 22.8%
AA-/Aa3 Associates Corp. of North America 7.50%,
05/15/99................................ 3,000,000 2,993,066 3,161,250
A/A3 AT&T Capital Corp. Medium Term Note 7.59%,
01/31/97................................ 3,500,000 3,513,982 3,578,750
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
5
<PAGE> 12
FUNDS IV TRUST
THE INTERMEDIATE BOND INCOME FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS* AMOUNT COST (NOTE 2A)
- -------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
AA/A2 Capital Holdings Corp. Medium Term Note
8.90%, 10/20/99......................... $ 500,000 $ 526,989 $ 548,125
A/A2 Dean Witter Discover & Co. 5.00%,
04/01/96................................ 2,000,000 1,985,922 1,997,500
A+/A1 Ford Motor Credit Co. 9.00%, 09/15/01..... 1,500,000 1,587,685 1,715,625
A+/A1 Ford Motor Credit Co. Global Bond 6.25%,
02/26/98................................ 2,000,000 1,997,926 2,027,500
A/A2 Ford Motor Credit Co. Medium Term Note
8.00%, 12/02/96......................... 275,000 278,016 281,188
AAA/Aaa General Electric Capital Corp. Medium Term
Note 7.85%, 01/17/97.................... 4,500,000 4,506,611 4,612,500
BBB+/A3 General Motors Acceptance Corp. Medium
Term Note 7.875%, 02/28/97.............. 3,000,000 3,050,213 3,078,750
A/A2 Household Finance Corp. 6.375%,
06/30/00................................ 4,000,000 3,930,552 4,070,000
AA/Aa3 National Rural Utilities Cooperative
Finance Corp. 6.50%, 09/15/02........... 4,000,000 3,991,364 4,110,000
A+/A1 Texaco Capital Inc. 9.00%, 11/15/96....... 500,000 510,143 515,625
------------- ------------
28,872,469 29,696,813
------------- ------------
RETAIL -- DEPARTMENT STORES -- 5.8%
A+/A1 J.C. Penney Co. 6.875%, 06/15/99.......... 3,500,000 3,445,583 3,622,500
AA/Aa1 Wal-Mart Stores, Inc. 5.50%, 03/01/98..... 550,000 534,516 550,000
AA/Aa1 Wal-Mart Stores, Inc. 8.625%, 04/01/01.... 3,000,000 3,108,116 3,371,250
------------- ------------
7,088,215 7,543,750
------------- ------------
SECURITIES FIRMS -- 3.2%
A/Baa1 Lehman Brothers Holdings, Inc. 7.375%,
05/15/07................................ 4,000,000 4,117,515 4,165,000
------------- ------------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
6
<PAGE> 13
FUNDS IV TRUST
THE INTERMEDIATE BOND INCOME FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS* AMOUNT COST (NOTE 2A)
- -------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
TELECOMMUNICATIONS -- 3.3%
AA-/A1 GTE North, Inc. Series A 6.00%,
01/15/04................................ $ 4,000,000 $ 3,861,194 $ 3,990,000
AA/A1 Southwestern Bell Telephone Co. 8.30%,
06/01/96................................ 300,000 302,243 303,375
------------- ------------
4,163,437 4,293,375
------------- ------------
TOTAL CORPORATE BONDS AND NOTES........... 58,411,066 60,470,188
------------- ------------
MONEY MARKET FUND*** -- 0.4%
Federated Prime Obligations Money
Market Fund............................. 627,245 627,245 627,245
------------- ------------
TOTAL INVESTMENTS -- 98.8%................ $ 124,186,643 128,849,238
===========
OTHER ASSETS LESS LIABILITIES -- 1.2%..... 1,521,721
------------
NET ASSETS -- 100.0%...................... $130,370,959
===========
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
7
<PAGE> 14
FUNDS IV TRUST
THE BOND INCOME FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS* AMOUNT COST (NOTE 2A)
- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 76.3%
U.S. TREASURY BONDS -- 20.9%
7.25%, 05/15/16......................... $2,750,000 $ 2,819,293 $ 3,140,197
8.125%, 08/15/19........................ 1,000,000 996,038 1,257,460
7.625%, 02/15/25........................ 1,500,000 1,714,325 1,833,450
---------- -----------
5,529,656 6,231,107
---------- -----------
U.S. TREASURY NOTES -- 55.4%
5.875%, 07/31/97........................ 2,000,000 2,016,141 2,021,020
5.125%, 03/31/98........................ 1,000,000 995,062 998,970
6.125%, 05/15/98........................ 3,000,000 3,053,867 3,061,560
7.75%, 12/31/99......................... 1,000,000 1,068,550 1,085,720
7.125%, 02/29/00........................ 3,000,000 3,123,224 3,195,870
6.375%, 08/15/02........................ 2,000,000 1,920,813 2,100,360
5.75%, 08/15/03......................... 1,500,000 1,485,524 1,520,175
7.875%, 11/15/04........................ 1,000,000 1,089,479 1,157,980
6.50%, 08/15/05......................... 1,250,000 1,300,841 1,332,687
---------- -----------
16,053,501 16,474,342
---------- -----------
TOTAL U.S. TREASURY OBLIGATIONS......... 21,583,157 22,705,449
---------- -----------
CORPORATE BONDS AND NOTES -- 20.9%
BANKING SERVICES -- 3.4%
A-/A3 First Union Corp. 6.55%, 10/15/05(c).... 500,000 496,384 514,375
A/A2 NationsBank Corp. 7.50%, 02/15/97....... 500,000 499,749 511,250
---------- -----------
996,133 1,025,625
---------- -----------
FINANCIAL SERVICES -- 9.7%
AA-/Aa3 Associates Corp. of North America 7.50%,
05/15/99.............................. 500,000 498,845 526,875
A/A3 AT&T Capital Corp. Medium Term Note
7.59%, 01/31/97....................... 500,000 501,998 511,250
A/A2 Dean Witter Discover & Co. 6.25%,
03/15/00.............................. 300,000 295,429 303,750
A+/A1 Ford Motor Credit Co. Global Bond 6.25%,
02/26/98.............................. 500,000 499,481 506,875
AAA/Aaa General Electric Capital Corp. Medium
Term Note 7.85%, 01/17/97............. 500,000 500,734 512,500
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
8
<PAGE> 15
FUNDS IV TRUST
THE BOND INCOME FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL VALUE
RATINGS* AMOUNT COST (NOTE 2A)
- --------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
CORPORATE BONDS AND NOTES -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
AA/Aa3 National Rural Utilities Cooperative
Finance Corp. 6.50%, 09/15/02......... $ 500,000 $ 498,921 $ 513,750
---------- -----------
2,795,408 2,875,000
---------- -----------
OIL/GAS -- 2.5%
AAA/Aa2 Shell Oil Co. 6.70%, 08/15/02........... 700,000 715,617 731,500
---------- -----------
RETAIL -- DEPARTMENT STORES -- 3.6%
A+/A1 J.C. Penney Co. 6.875%, 06/15/99........ 500,000 492,227 517,500
AA/Aa1 Wal-Mart Stores, Inc. 8.625%,
04/01/01.............................. 500,000 518,020 561,875
---------- -----------
1,010,247 1,079,375
---------- -----------
SECURITIES FIRMS -- 1.7%
A/Baa1 Lehman Brothers Holdings, Inc. 7.375%,
05/15/07.............................. 500,000 514,689 520,624
---------- -----------
TOTAL CORPORATE BONDS AND NOTES......... 6,032,094 6,232,124
---------- -----------
MONEY MARKET FUND*** -- 2.1%
Federated Prime Obligations Money Market
Fund.................................. 620,058 620,058 620,058
---------- -----------
TOTAL INVESTMENTS -- 99.3%.............. $28,235,309 29,557,631
==========
OTHER ASSETS LESS LIABILITIES -- 0.7%... 208,774
-----------
NET ASSETS -- 100.0%.................... $29,766,405
===========
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
9
<PAGE> 16
FUNDS IV TRUST
THE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- -------- ------------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- 98.2%
AEROSPACE/DEFENSE -- 3.9%
26,000 Boeing Co. ............................................ $ 1,409,725 $ 2,037,750
21,000 Lockheed Martin Corp. ................................. 1,198,854 1,659,000
51,000 Raytheon Co. .......................................... 1,743,775 2,409,750
------------- ------------
4,352,354 6,106,500
------------- ------------
AUTO & TRUCKS -- 3.6%
155,000 Ford Motor Co. ........................................ 4,716,391 4,495,000
20,000 General Motors Corp. .................................. 985,250 1,057,500
------------- ------------
5,701,641 5,552,500
------------- ------------
BANKING SERVICES -- 3.0%
29,500 First Interstate Bancorp .............................. 2,305,834 4,026,750
12,500 Mellon Bank Corp. ..................................... 667,727 671,875
------------- ------------
2,973,561 4,698,625
------------- ------------
BEVERAGES -- 2.3%
38,000 The Coca-Cola Co. ..................................... 1,905,478 2,821,500
14,000 PepsiCo, Inc. ......................................... 721,700 782,250
------------- ------------
2,627,178 3,603,750
------------- ------------
BROADCASTING -- 3.6%
11,000 Capital Cities/ABC, Inc. .............................. 980,013 1,357,125
127,500 Heritage Media Corp.++................................. 2,941,422 3,267,188
25,000 Tele-Communications, Inc. Class A++.................... 422,877 496,875
10,000 Viacom, Inc. Class B++................................. 497,450 473,750
------------- ------------
4,841,762 5,594,938
------------- ------------
CHEMICALS -- 4.0%
18,500 Air Products & Chemicals, Inc. ........................ 948,081 975,875
28,500 Cabot Corp. ........................................... 1,411,117 1,535,438
22,700 DuPont (E.I.) de Nemours & Co. ........................ 1,370,513 1,586,163
34,000 IMC Global, Inc. ...................................... 943,444 1,389,750
21,500 Morton International, Inc. ............................ 623,715 771,312
------------- ------------
5,296,870 6,258,538
------------- ------------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
10
<PAGE> 17
FUNDS IV TRUST
THE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- -------- ------------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
COMPUTERS -- 3.8%
66,000 Comdisco, Inc. ........................................ $ 976,000 $ 1,493,250
65,000 Compaq Computer Corp.++................................ 3,108,403 3,120,000
14,000 International Business Machines Corp. ................. 1,358,945 1,284,500
------------- ------------
5,443,348 5,897,750
------------- ------------
COMPUTER SOFTWARE & SERVICES -- 0.5%
9,000 Microsoft Corp.++ ..................................... 543,375 789,750
------------- ------------
COSMETICS/PERSONAL CARE -- 0.5%
15,000 Gillette Co. .......................................... 551,063 781,875
------------- ------------
ELECTRICAL EQUIPMENT -- 0.8%
60,000 Baldor Electric Co. ................................... 915,000 1,207,500
------------- ------------
ELECTRONICS -- 3.0%
22,000 General Electric Co. .................................. 1,475,100 1,584,000
8,500 Hewlett-Packard Co. ................................... 529,325 711,875
35,000 Intel Corp. ........................................... 2,156,640 1,986,250
18,000 Teradyne, Inc.++....................................... 270,000 450,000
------------- ------------
4,431,065 4,732,125
------------- ------------
ENTERTAINMENT -- 0.7%
18,000 The Walt Disney Co. ................................... 920,100 1,062,000
------------- ------------
FINANCIAL SERVICES -- 10.2%
38,000 ADVANTA Corp. Class B.................................. 1,272,000 1,382,250
69,000 American Express Co. .................................. 2,080,338 2,854,875
41,000 Citicorp............................................... 2,102,754 2,757,250
26,000 Donaldson, Lufkin & Jenrette Securities, Inc.++ ....... 785,405 812,500
30,000 Equifax, Inc. ......................................... 431,250 641,250
20,500 Federal National Mortgage Association.................. 1,979,881 2,544,562
36,000 J.P. Morgan & Co., Inc. ............................... 2,317,650 2,889,000
50,000 Lehman Brothers Holdings, Inc. ........................ 1,124,100 1,062,500
25,000 MBNA Corp. ............................................ 975,750 921,875
------------- ------------
13,069,128 15,866,062
------------- ------------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
11
<PAGE> 18
FUNDS IV TRUST
THE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- -------- ------------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
FOOD PROCESSING -- 3.8%
47,000 Philip Morris Cos., Inc. .............................. $ 3,119,610 $ 4,253,500
50,000 Sara Lee Corp. ........................................ 1,444,063 1,593,750
------------- ------------
4,563,673 5,847,250
------------- ------------
FOOTWEAR -- 3.4%
76,000 Nike, Inc. Class B..................................... 3,318,751 5,291,500
------------- ------------
FOREST PRODUCTS & PAPERS -- 0.4%
15,000 Champion International Corp. .......................... 825,255 630,000
------------- ------------
HOLDING COMPANIES -- 2.0%
26,000 ITT Corp. ............................................. 2,997,366 3,061,500
------------- ------------
HOMEBUILDERS -- 1.0%
75,000 Clayton Homes, Inc. ................................... 1,155,570 1,603,125
------------- ------------
HOUSEHOLD PRODUCTS -- 0.6%
10,500 Procter & Gamble Co. .................................. 654,150 871,500
------------- ------------
INSURANCE -- 3.1%
34,100 American International Group, Inc. .................... 2,370,422 3,154,250
11,200 General Re Corp. ...................................... 1,411,710 1,736,000
------------- ------------
3,782,132 4,890,250
------------- ------------
LEISURE -- 0.7%
32,000 The Coleman Co., Inc.++................................ 1,078,025 1,124,000
------------- ------------
MACHINERY -- 3.4%
75,000 Case Corp. ............................................ 2,718,495 3,431,250
14,500 Caterpillar, Inc. ..................................... 902,831 851,875
30,000 Deere & Co. ........................................... 874,544 1,057,500
------------- ------------
4,495,870 5,340,625
------------- ------------
MISCELLANEOUS MANUFACTURING -- 1.1%
26,000 Eastman Kodak Co. ..................................... 1,279,584 1,742,000
------------- ------------
MEDICAL SERVICES -- 1.5%
45,000 Columbia/HCA Healthcare Corp. ......................... 1,754,425 2,283,750
------------- ------------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
12
<PAGE> 19
FUNDS IV TRUST
THE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- -------- ------------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
METALS -- 2.0%
29,000 Aluminum Co. of America................................ $ 1,355,937 $ 1,533,375
50,000 Kennametal, Inc. ...................................... 1,754,886 1,587,500
------------- ------------
3,110,823 3,120,875
------------- ------------
MINING -- 0.8%
50,000 Barrick Gold Corp. .................................... 1,109,875 1,318,750
------------- ------------
OIL/GAS -- 8.3%
44,000 Amoco Corp. ........................................... 2,645,832 3,162,500
75,000 Chevron Corp. ......................................... 3,612,000 3,937,500
39,000 Exxon Corp. ........................................... 2,600,012 3,124,875
8,000 Mobil Corp. ........................................... 665,000 896,000
8,000 Royal Dutch Petroleum Co. New York Shares ADR.......... 921,118 1,129,000
16,600 Tosco Corp. ........................................... 518,750 632,875
------------- ------------
10,962,712 12,882,750
------------- ------------
OIL/GAS EQUIPMENT -- 0.7%
44,000 Baker Hughes, Inc. .................................... 859,100 1,072,500
------------- ------------
PHARMACEUTICALS -- 8.6%
12,500 Allergan, Inc. ........................................ 325,000 406,250
10,000 Amgen, Inc.++.......................................... 504,810 593,750
20,000 Bristol-Myers Squibb Co. .............................. 1,268,054 1,717,500
12,000 Johnson & Johnson...................................... 740,536 1,027,500
26,000 Eli Lilly & Co. ....................................... 1,138,830 1,462,500
102,000 Merck & Co., Inc. ..................................... 4,718,909 6,706,500
11,500 Pfizer, Inc. .......................................... 424,344 724,500
13,500 Schering-Plough........................................ 477,552 739,125
------------- ------------
9,598,035 13,377,625
------------- ------------
RESTAURANTS/FOOD SERVICES -- 0.6%
20,000 McDonald's Corp. ...................................... 690,688 902,500
------------- ------------
RETAIL -- DEPARTMENT STORES -- 0.5%
32,000 Wal-Mart Stores, Inc. ................................. 858,416 716,000
------------- ------------
RETAIL -- GROCERY -- 1.0%
42,000 Kroger Co.++........................................... 1,390,725 1,575,000
------------- ------------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
13
<PAGE> 20
FUNDS IV TRUST
THE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- --------- ------------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- SPECIALTY LINE -- 1.9%
26,500 CompUSA, Inc.++....................................... $ 1,101,101 $ 824,812
65,000 OfficeMax, Inc.++..................................... 1,295,346 1,454,375
9,750 PETsMART, Inc.++ ..................................... 227,500 302,250
14,000 Walgreen Co. ......................................... 350,350 418,250
------------- ------------
2,974,297 2,999,687
------------- ------------
TELECOMMUNICATIONS -- 7.5%
40,000 AT&T Corp. ........................................... 2,284,050 2,590,000
97,000 GTE Corp. ............................................ 3,136,725 4,268,000
9,000 Motorola, Inc. ....................................... 723,082 513,000
76,000 SBC Communications, Inc. ............................. 3,573,975 4,370,000
------------- ------------
9,717,832 11,741,000
------------- ------------
TOYS -- 0.3%
14,500 Mattel, Inc. ......................................... 329,150 445,875
------------- ------------
TRANSPORTATION -- 0.7%
10,000 Conrail, Inc. ........................................ 597,300 700,000
2,500 UAL Corp.++........................................... 369,187 446,250
------------- ------------
966,487 1,146,250
------------- ------------
UTILITIES -- ELECTRIC -- 4.4%
28,500 California Energy Co., Inc.++......................... 513,996 555,750
20,000 CILCORP., Inc. ....................................... 592,500 847,500
29,000 Duke Power Co. ....................................... 1,112,149 1,373,875
125,000 Unicom Corp. ......................................... 3,651,338 4,093,750
------------- ------------
5,869,983 6,870,875
------------- ------------
TOTAL COMMON STOCKS................................... 126,009,369 153,007,100
------------- ------------
MONEY MARKET FUND*** -- 0.5%
$793,631 Federated Prime Obligations Money Market Fund......... 793,631 793,631
------------- ------------
TOTAL INVESTMENTS -- 98.7%............................ $ 126,803,000 153,800,731
===========
OTHER ASSETS LESS LIABILITIES -- 1.3%................. 1,974,625
------------
NET ASSETS -- 100.0%.................................. $155,775,356
===========
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
14
<PAGE> 21
FUNDS IV TRUST
THE AGGRESSIVE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ----------- ------------ -----------
<C> <S> <C> <C>
COMMON STOCKS -- 99.4%
AEROSPACE/DEFENSE -- 2.1%
3,000 Lockheed Martin Corp................................... $ 144,750 $ 237,000
18,100 Rockwell International Corp............................ 845,784 957,038
------------ -----------
990,534 1,194,038
------------ -----------
AUTO & TRUCKS -- 1.1%
20,500 Ford Motor Co. ........................................ 664,856 594,500
------------ -----------
BANKING SERVICES -- 5.8%
11,300 First Interstate Bancorp............................... 1,018,417 1,542,450
10,500 Mellon Bank Corp. ..................................... 560,891 564,375
26,000 State Street Boston Corp. ............................. 1,008,270 1,170,000
------------ -----------
2,587,578 3,276,825
------------ -----------
BROADCASTING -- 6.4%
4,900 Capital Cities/ABC, Inc. .............................. 439,870 604,537
80,000 Heritage Media Corp.++................................. 1,840,608 2,050,000
5,000 International Family Entertainment, Inc. Class B++..... 73,125 81,875
17,700 Viacom, Inc. Class B++................................. 879,024 838,538
------------ -----------
3,232,627 3,574,950
------------ -----------
CHEMICALS -- 7.5%
10,000 Air Products & Chemicals, Inc.......................... 512,476 527,500
21,000 Cabot Corp............................................. 988,636 1,131,375
5,000 Eastman Chemical Co. .................................. 270,423 313,125
36,000 IMC Global, Inc. ...................................... 903,984 1,471,500
6,150 Monsanto Co. .......................................... 514,294 753,375
------------ -----------
3,189,813 4,196,875
------------ -----------
COMPUTER SOFTWARE & SERVICES -- 1.1%
11,000 Computer Associates International, Inc. ............... 404,093 625,625
------------ -----------
COMPUTERS -- 7.4%
75,000 Comdisco, Inc. ........................................ 1,250,791 1,696,875
37,000 Compaq Computer Corp.++................................ 1,786,395 1,776,000
7,300 International Business Machines Corp. ................. 721,461 669,775
------------ -----------
3,758,647 4,142,650
------------ -----------
ELECTRICAL EQUIPMENT -- 1.0%
25,200 Baldor Electric Co. ................................... 384,300 507,150
------------ -----------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
15
<PAGE> 22
FUNDS IV TRUST
THE AGGRESSIVE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ----------- ------------ -----------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRONICS -- 2.3%
500 Advanced Micro Devices, Inc.++ ........................ $ 17,025 $ 8,250
3,400 Hewlett-Packard Co. ................................... 233,586 284,750
15,000 Intel Corp. ........................................... 915,228 851,250
6,000 Teradyne, Inc.++....................................... 90,000 150,000
------------ -----------
1,255,839 1,294,250
------------ -----------
ENTERTAINMENT -- 1.3%
31,500 Grand Casinos, Inc.++ ................................. 855,256 732,375
------------ -----------
FINANCIAL SERVICES -- 12.0%
19,000 ADVANTA Corp. Class B.................................. 662,802 691,125
18,000 American Express Co. .................................. 583,534 744,750
18,500 Citicorp............................................... 952,358 1,244,125
34,000 Donaldson, Lufkin & Jenrette Securities, Inc.++........ 1,035,843 1,062,500
30,000 Equifax, Inc. ......................................... 431,250 641,250
10,000 Federal National Mortgage Association.................. 1,093,132 1,241,250
51,000 Lehman Brothers Holdings, Inc. ........................ 1,137,620 1,083,750
------------ -----------
5,896,539 6,708,750
------------ -----------
FOOD PROCESSING -- 1.2%
7,500 Philip Morris Cos., Inc. .............................. 513,219 678,750
------------ -----------
FOOTWEAR -- 3.9%
31,500 Nike, Inc. Class B..................................... 1,593,930 2,193,187
------------ -----------
FOREST PRODUCTS & PAPERS -- 1.7%
16,000 Champion International Corp. .......................... 923,211 672,000
7,975 Rayonier, Inc. ........................................ 278,821 266,166
------------ -----------
1,202,032 938,166
------------ -----------
HOLDING COMPANIES -- 1.4%
6,800 ITT Corp. ............................................. 743,661 800,700
------------ -----------
HOMEBUILDERS -- 2.6%
69,000 Clayton Homes, Inc. ................................... 1,040,840 1,474,875
------------ -----------
INSURANCE -- 0.5%
2,000 General Re Corp. ...................................... 225,750 310,000
------------ -----------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
16
<PAGE> 23
FUNDS IV TRUST
THE AGGRESSIVE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ----------- ------------ -----------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
LEISURE -- 1.6%
25,000 The Coleman Co., Inc.++................................ $ 833,128 $ 878,125
------------ -----------
MACHINERY -- 3.6%
14,900 Atchison Casting Corp.++............................... 247,713 178,800
40,000 Case Corp. ............................................ 1,426,205 1,830,000
------------ -----------
1,673,918 2,008,800
------------ -----------
MEDICAL SERVICES -- 0.9%
9,680 Columbia/HCA Healthcare Corp. ......................... 325,875 491,260
------------ -----------
METALS -- 3.5%
16,500 Aluminum Co. of America................................ 933,328 872,438
34,000 Kennametal, Inc. ...................................... 1,185,177 1,079,500
------------ -----------
2,118,505 1,951,938
------------ -----------
MINING -- 0.9%
19,700 Barrick Gold Corp. .................................... 450,336 519,587
------------ -----------
MISCELLANEOUS MANUFACTURING -- 0.1%
2,400 Hillenbrand Industries, Inc. .......................... 78,600 81,300
------------ -----------
OIL/GAS -- 2.4%
12,500 Amoco Corp. ........................................... 746,950 898,438
11,500 Tosco Corp. ........................................... 359,375 438,437
------------ -----------
1,106,325 1,336,875
------------ -----------
OIL/GAS EQUIPMENT -- 1.5%
35,000 Baker Hughes, Inc. .................................... 686,693 853,125
------------ -----------
PHARMACEUTICALS -- 7.6%
7,000 Allergan, Inc. ........................................ 202,475 227,500
25,600 Amgen, Inc.++ ......................................... 1,005,894 1,520,000
7,000 Johnson & Johnson...................................... 431,243 599,375
28,600 Merck & Co., Inc. ..................................... 1,544,988 1,880,450
------------ -----------
3,184,600 4,227,325
------------ -----------
PUBLISHING & PRINTING -- 2.0%
55,000 Bowne & Co., Inc. ..................................... 1,102,093 1,100,000
------------ -----------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
17
<PAGE> 24
FUNDS IV TRUST
THE AGGRESSIVE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ----------- ------------ -----------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL -- SPECIALTY LINE -- 7.4%
37,000 CompUSA, Inc.++........................................ $ 1,507,220 $ 1,151,625
33,500 Corporate Express, Inc.++ ............................. 804,000 1,009,188
46,000 OfficeMax, Inc.++...................................... 959,605 1,029,250
29,950 PETsMART, Inc.++....................................... 774,330 928,450
------------ -----------
4,045,155 4,118,513
------------ -----------
TELECOMMUNICATIONS -- 3.7%
11,000 Motorola, Inc. ........................................ 836,033 627,000
25,000 SBC Communications, Inc. .............................. 1,113,838 1,437,500
------------ -----------
1,949,871 2,064,500
------------ -----------
TOYS -- 1.0%
17,812 Mattel, Inc. .......................................... 404,332 547,719
------------ -----------
TRANSPORTATION -- 2.0%
10,000 Conrail, Inc. ......................................... 583,350 700,000
2,300 UAL Corp.++............................................ 337,171 410,550
------------ -----------
920,521 1,110,550
------------ -----------
UTILITIES -- ELECTRIC -- 1.9%
43,000 California Energy Co., Inc.++.......................... 786,991 838,500
5,500 CILCORP, Inc. ......................................... 162,937 233,061
------------ -----------
949,928 1,071,561
------------ -----------
TOTAL COMMON STOCKS.................................... 48,369,394 55,604,844
------------ -----------
MONEY MARKET FUND*** -- 1.9%
$1,063,125 Federated Prime Obligations Money Market Fund.......... 1,063,125 1,063,125
------------ -----------
TOTAL INVESTMENTS -- 101.3%............................ $ 49,432,519 56,667,969
==========
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.3%)........ (722,563)
-----------
NET ASSETS -- 100.0%................................... $55,945,406
==========
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
18
<PAGE> 25
FUNDS IV TRUST
THE VALUE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ----------- ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS -- 93.4%
AEROSPACE/DEFENSE -- 5.9%
16,224 Raytheon Co. .......................................... $ 569,493 $ 766,584
14,395 Rockwell International Corp. .......................... 567,628 761,136
---------- ----------
1,137,121 1,527,720
---------- ----------
AUTO PARTS -- 2.8%
17,890 Genuine Parts Co. ..................................... 696,484 733,490
---------- ----------
BEVERAGES -- 2.3%
8,095 The Coca-Cola Co. ..................................... 430,047 601,054
---------- ----------
BREWERY -- 2.7%
10,345 Anheuser-Busch Cos., Inc. ............................. 566,609 691,822
---------- ----------
CHEMICAL -- 1.8%
10,460 PPG Industries, Inc. .................................. 384,355 478,545
---------- ----------
ELECTRONICS -- 5.4%
10,320 General Electric Co. .................................. 544,730 743,040
11,825 Intel Corp. ........................................... 537,428 671,069
---------- ----------
1,082,158 1,414,109
---------- ----------
FINANCIAL SERVICES -- 8.7%
6,410 Federal National Mortgage Association.................. 701,282 795,641
9,230 J.P. Morgan & Co., Inc. ............................... 603,158 740,708
20,210 MBNA Corp. ............................................ 714,482 745,244
---------- ----------
2,018,922 2,281,593
---------- ----------
FOOD PROCESSING -- 6.8%
12,700 General Mills Inc. .................................... 725,607 733,425
11,560 Philip Morris Cos., Inc. .............................. 709,495 1,046,180
---------- ----------
1,435,102 1,779,605
---------- ----------
FOREST PRODUCTS & PAPERS -- 1.9%
10,500 Union Camp Corp. ...................................... 560,009 500,063
---------- ----------
INSURANCE -- 5.5%
8,078 American International Group, Inc. .................... 600,101 747,215
7,070 Chubb Corp. ........................................... 570,244 684,023
---------- ----------
1,170,345 1,431,238
---------- ----------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
19
<PAGE> 26
FUNDS IV TRUST
THE VALUE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2A)
- ----------- ---------- ----------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
MISCELLANEOUS MANUFACTURING -- 2.3%
9,085 Minnesota Mining & Manufacturing Co. .................. $ 480,369 $ 601,881
---------- ----------
OIL/GAS -- 9.9%
20,775 Ashland, Inc. ......................................... 700,770 729,722
4,713 Atlantic Richfield Co. ................................ 543,334 521,965
8,452 Exxon Corp. ........................................... 619,859 677,216
4,635 Royal Dutch Petroleum Co. New York Shares ADR.......... 567,860 654,114
---------- ----------
2,431,823 2,583,017
---------- ----------
PERSONAL CARE -- 2.3%
12,300 Tambrands, Inc. ....................................... 511,987 587,325
---------- ----------
PHARMACEUTICALS -- 8.5%
13,775 Abbott Laboratories.................................... 478,681 575,106
8,000 Bristol-Myers Squibb Co. .............................. 490,000 687,000
14,545 Merck & Co., Inc. ..................................... 585,436 956,334
---------- ----------
1,554,117 2,218,440
---------- ----------
PUBLISHING & PRINTING -- 4.6%
11,610 Dun & Bradstreet Corp. ................................ 619,592 751,747
21,805 John H. Harland Co. ................................... 480,436 455,179
---------- ----------
1,100,028 1,206,926
---------- ----------
RESTAURANTS/FOOD SERVICES -- 1.7%
9,804 McDonald's Corp. ...................................... 329,660 442,405
---------- ----------
RETAIL -- DEPARTMENT STORES -- 3.4%
10,586 May Department Stores Co. ............................. 444,729 447,258
19,345 Wal-Mart Stores, Inc. ................................. 459,668 432,844
---------- ----------
904,397 880,102
---------- ----------
TELECOMMUNICATIONS -- 4.8%
16,995 GTE Corp. ............................................. 614,440 747,780
8,975 SBC Communications, Inc. .............................. 408,138 516,062
---------- ----------
1,022,578 1,263,842
---------- ----------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
20
<PAGE> 27
FUNDS IV TRUST
THE VALUE STOCK APPRECIATION FUND
Portfolio of Investments (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL VALUE
AMOUNT COST (NOTE 2A)
- ---------- ------------ -----------
<C> <S> <C> <C>
COMMON STOCKS -- (CONTINUED)
TEXTILES -- 1.9%
9,400 VF Corp. .............................................. $ 479,931 $ 495,850
---------- ----------
TOBACCO -- 2.9%
22,535 UST, Inc. ............................................. 657,850 752,106
---------- ----------
TRANSPORTATION -- 1.5%
17,518 Alexander & Baldwin, Inc. ............................. 385,396 402,914
---------- ----------
UTILITIES -- 5.8%
26,675 Central & South West Corp. ............................ 736,117 743,566
16,869 Consolidated Natural Gas Co. .......................... 671,585 765,431
---------- ----------
1,407,702 1,508,997
---------- ----------
TOTAL COMMON STOCKS.................................... 20,746,990 24,383,044
---------- ----------
U.S. TREASURY BILLS -- 7.2%
$1,000,000 5.27% 01/25/96 (d)..................................... 996,533 996,533
900,000 5.33% 03/07/96 (d)..................................... 891,312 891,599
---------- ----------
TOTAL U.S. TREASURY BILLS.............................. 1,887,845 1,888,132
---------- ----------
TOTAL INVESTMENTS -- 100.6%............................ $ 22,634,835 26,271,176
==========
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.6%)........ (170,820)
----------
NET ASSETS -- 100.0%................................... $26,100,356
==========
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
21
<PAGE> 28
FUNDS IV TRUST
Footnotes to Portfolios (unaudited)
* Long-Term Credit Ratings given by Standard & Poor's Corp. and Moody's
Investors Services, Inc. (unaudited).
<TABLE>
<CAPTION>
Standard & Poor's Moody's
- ----------------- --------
<S> <C> <C>
AAA Aaa Instrument judged to be of the best 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.
BBB Baa Instrument judged to be of moderate quality by all
standards.
</TABLE>
Items which possess the strongest investment attributes of their category
are given that letter rating following by a number. The Standard & Poor's
Corp. may modify the ratings by the addition of a plus or minus sign to show
relative standing within the major rating categories.
U.S. Government issues have assumed ratings of AAA/Aaa.
** Short-Term Credit Ratings given by the following Nationally Recognized
Statistical Rating Organizations which represent instrument of the highest
quality (unaudited):
<TABLE>
<CAPTION>
Duff & Phelps Fitch Investor IBCA Moody's Investors Standard & Poor's Thompson
Credit Rating Services, Inc. Ltd. Services, Inc. Corp. BankWatch
- -------------- --------------- ---- ------------------ ------------------ ----------
<S> <C> <C> <C> <C> <C>
D-1 F-1 A1 P-1 A-1 TBW-1
</TABLE>
*** Money Market Funds have credit ratings of AAA/Aaa.
+ The cost of securities for Federal income tax purposes is substantially the
same.
++ Non-income producing security.
(a) Maturity date shown is the final maturity date; rate shown represents the
yield to next interest reset date.
(b) Security restricted as to resale. The total value of restricted security is
5.45% of net assets.
(c) Maturity date shown is the first callable date or put date.
(d) Rate shown is yield to maturity on date of purchase.
INVESTMENT PERCENTAGES SHOWN ARE CALCULATED AS A PERCENTAGE OF NET ASSETS.
ABBREVIATIONS USED IN THE PORTFOLIOS:
<TABLE>
<CAPTION>
<S> <C>
ADR American Depository Receipts
VR Variable Rate
</TABLE>
See accompanying notes to financial statements.
22
<PAGE> 29
FUNDS IV TRUST
Statement of Assets and Liabilities (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
THE THE THE
CASH RESERVE SHORT-TERM INTERMEDIATE THE
MONEY MARKET TREASURY BOND INCOME BOND INCOME
FUND INCOME FUND FUND FUND
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$291,865,449, $17,130,757, $124,186,643 and
$28,235,309, respectively) (Note 2A)......... $291,865,449 $17,608,138 $128,849,238 $29,557,631
Cash........................................... -- 70,456 27,853 --
Interest receivable............................ 1,533,634 269,581 2,201,751 541,114
Unamortized organizational costs (Note 2E)..... 16,690 15,708 16,937 16,937
Other assets................................... 15,759 997 6,918 696
------------ ----------- ------------ -----------
Total assets................................. 293,431,532 17,964,880 131,102,697 30,116,378
------------ ----------- ------------ -----------
LIABILITIES:
Payable to Custodian........................... -- -- -- 186,164
Dividend payable............................... 1,465,491 81,134 630,844 124,542
Investment Advisory fee payable (Note 3)....... 53,444 9,504 44,261 17,212
Administrative services fee payable (Note 4)... 40,083 -- 16,598 3,908
Shareholder servicing fee payable (Note 5)..... 13,361 746 5,533 1,199
Custodian fee payable (Note 6)................. 8,016 448 3,320 719
Fund accounting fee payable (Note 4)........... 3,319 2,463 5,219 3,004
Transfer agent fee payable (Note 6)............ 718 805 2,332 904
Other accrued expenses......................... 44,144 2,239 23,631 12,321
------------ ----------- ------------ -----------
Total liabilities............................ 1,628,576 97,339 731,738 349,973
------------ ----------- ------------ -----------
NET ASSETS....................................... $291,802,956 $17,867,541 $130,370,959 $29,766,405
============ =========== ============= ===========
COMPOSITION OF NET ASSETS:
Shares of beneficial interest outstanding (par
value of $0.001 per share); unlimited number
of shares authorized......................... $ 291,802 $ 1,729 $ 12,544 $ 2,770
Additional paid-in capital..................... 291,510,160 17,341,681 125,125,823 28,314,324
Accumulated undistributed net realized gain on
investment transactions...................... 994 46,750 569,997 126,989
Net unrealized appreciation on investments..... -- 477,381 4,662,595 1,322,322
----------- ----------- ------------- -----------
Net assets applicable to shares of beneficial
interest outstanding........................... $291,802,956 $17,867,541 $130,370,959 $29,766,405
=========== =========== ============= ===========
SHARES OF BENEFICIAL INTEREST:
SERVICE CLASS:
Shares of beneficial interest outstanding.... 291,795,947 1,728,339 12,543,678 2,769,079
=========== =========== ============= ===========
Net asset value, maximum offering price and
redemption price per share outstanding..... $1.00 $10.33 $10.39 $10.75
====== ======= ====== =======
PREMIUM CLASS:
Shares of beneficial interest outstanding.... 6,015 603 605 605
====== ======= ====== =======
Net asset value, maximum offering price and
redemption price per share outstanding..... $1.00 $10.33 $10.39 $10.75
====== ======= ====== =======
</TABLE>
See accompanying notes to financial statements.
23
<PAGE> 30
FUNDS IV TRUST
Statement of Assets and Liabilities (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
THE
THE AGGRESSIVE THE
STOCK STOCK VALUE STOCK
APPRECIATION APPRECIATION APPRECIATION
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost $126,803,000,
$49,432,519 and $22,634,835, respectively) (Note 2A)...... $153,800,731 $56,667,969 $26,271,176
Cash........................................................ 127,986 -- --
Receivable for investments sold............................. 2,018,733 -- --
Dividends and interest receivable........................... 330,589 59,723 55,907
Unamortized organizational costs (Note 2E).................. 16,937 16,937 31,546
Other assets................................................ 7,519 2,672 1,510
------------ ------------ ------------
Total Assets.............................................. 156,302,495 56,747,301 26,360,139
------------ ------------ ------------
LIABILITIES:
Payable to Custodian........................................ -- 294,278 196,926
Payable for investments purchased........................... 389,827 431,548 --
Investment Advisory fee payable (Note 3).................... 84,802 34,850 29,621
Administrative services fee payable (Note 4)................ 19,570 7,017 3,275
Shareholder servicing fee payable (Note 5).................. 6,523 2,339 1,092
Custodian fee payable (Note 6).............................. 3,914 1,403 655
Fund accounting fee payable (Note 4)........................ 3,225 3,128 3,605
Transfer agent fee payable (Note 6)......................... 1,801 2,036 1,892
Other accrued expenses...................................... 17,477 25,296 22,717
------------ ------------ ------------
Total Liabilities......................................... 527,139 801,895 259,783
------------ ------------ ------------
NET ASSETS.................................................... $155,775,356 $55,945,406 $26,100,356
============= ============ ============
COMPOSITION OF NET ASSETS:
Shares of beneficial interest outstanding (par value of
$0.001
per share); unlimited number of shares authorized......... $ 12,702 $ 4,793 $ 2,173
Additional paid-in capital.................................. 128,344,045 48,765,572 22,313,734
Accumulated undistributed (distributions in excess of) net
investment income......................................... 736 3,017 (338)
Accumulated undistributed net realized gain (loss) on
investment transactions................................... 420,142 (63,426) 148,446
Net unrealized appreciation on investments.................. 26,997,731 7,235,450 3,636,341
------------ ------------ ------------
Net assets applicable to shares of beneficial interest
outstanding................................................. $155,775,356 $55,945,406 $26,100,356
============= ============ ============
SHARES OF BENEFICIAL INTEREST:
SERVICE CLASS:
Shares of beneficial interest outstanding................. 12,701,079 4,792,709 2,172,900
========== ========== ==========
Net asset value, maximum offering price and redemption
price per share outstanding............................. $12.26 $11.67 $12.01
====== ======= =======
PREMIUM CLASS:
Shares of beneficial interest outstanding................. 576 575 6
====== ======= =======
Net asset value, maximum offering price and redemption
price per share outstanding............................. $12.26 $11.67 $12.01
====== ======= =======
</TABLE>
See accompanying notes to financial statements.
24
<PAGE> 31
FUNDS IV TRUST
Statement of Operations (unaudited)
For the Six Months Ended December 31, 1995
<TABLE>
<CAPTION>
THE THE THE
CASH RESERVE SHORT-TERM INTERMEDIATE THE
MONEY MARKET TREASURY BOND INCOME BOND INCOME
FUND INCOME FUND FUND FUND
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
Interest.................................... $9,005,131 $ 516,732 $4,418,633 $ 648,210
---------- -------- ---------- ----------
EXPENSES:
Investment Advisory (Note 3)................ 299,764 24,589 265,658 40,077
Administrative services (Note 4)............ 224,823 12,294 99,622 15,029
Shareholder servicing (Note 5).............. 74,941 4,098 33,208 5,010
Custodian (Note 6).......................... 44,964 2,459 19,924 3,006
Audit....................................... 16,552 2,258 14,202 7,993
Reports to shareholders..................... 16,415 904 7,859 1,023
Fund accounting (Note 4).................... 16,336 15,619 19,768 17,310
Legal....................................... 11,493 714 6,327 675
Registration................................ 8,613 1,951 9,808 3,997
Trustees.................................... 7,580 408 3,786 575
Insurance................................... 7,063 168 3,555 493
Amortization of organization expenses (Note
2E)....................................... 2,334 3,417 2,187 2,187
Transfer agent (Note 6)..................... 1,321 1,998 7,902 1,867
Miscellaneous............................... 4,419 1,244 4,292 1,620
---------- -------- ---------- ----------
Net expenses before waivers............... 736,618 72,121 498,098 100,862
Expenses waived by Administrator
(Note 4)................................ -- (12,294) -- (9,129)
---------- -------- ---------- ----------
Net expenses................................ 736,618 59,827 498,098 91,733
---------- -------- ---------- ----------
NET INVESTMENT INCOME......................... 8,268,513 456,905 3,920,535 556,477
---------- -------- ---------- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment
transactions.............................. 4,409 60,019 1,624,973 282,201
Net change in unrealized appreciation of
investments............................... -- 182,446 934,023 684,355
---------- -------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS................................. 4,409 242,465 2,558,996 966,556
---------- -------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $8,272,922 $ 699,370 $6,479,531 $1,523,033
========== ======== ========== ==========
</TABLE>
See accompanying notes to financial statements.
25
<PAGE> 32
FUNDS IV TRUST
Statement of Operations (unaudited) (continued)
For the Six Months Ended December 31, 1995
<TABLE>
<CAPTION>
THE
THE AGGRESSIVE THE
STOCK STOCK VALUE STOCK
APPRECIATION APPRECIATION APPRECIATION
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
NET INVESTMENT INCOME:
INCOME:
Dividends.................................................... $ 1,416,676 $ 320,689 $ 290,616
Interest..................................................... 107,885 51,568 94,147
----------- ---------- ----------
1,524,561 372,257 384,763
----------- ---------- ----------
EXPENSES:
Investment Advisory (Note 3)................................. 471,690 192,062 75,914
Administrative services (Note 4)............................. 108,851 38,671 17,519
Shareholder servicing (Note 5)............................... 36,284 12,890 5,839
Custodian (Note 6)........................................... 21,770 7,734 3,506
Fund accounting (Note 4)..................................... 18,325 17,715 17,249
Audit........................................................ 12,050 14,023 12,356
Registration................................................. 8,207 4,816 3,616
Legal........................................................ 8,053 2,615 924
Reports to shareholders...................................... 8,011 3,994 1,330
Transfer agent (Note 6)...................................... 6,630 4,665 3,162
Trustees..................................................... 3,651 2,157 596
Insurance.................................................... 3,367 1,187 65
Amortization of organization expenses (Note 2E).............. 2,187 2,187 769
Miscellaneous................................................ 3,500 3,432 2,104
----------- ---------- ----------
Net expenses before waivers................................ 712,576 308,148 144,949
Expenses waived by Administrator (Note 4).................. -- -- (14,244)
----------- ---------- ----------
Net expenses................................................. 712,576 308,148 130,705
----------- ---------- ----------
NET INVESTMENT INCOME.......................................... 811,985 64,109 254,058
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investment transactions................. 3,676,587 1,699,432 297,905
Net change in unrealized appreciation on investments......... 11,986,554 2,422,408 2,200,899
----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................ 15,663,141 4,121,840 2,498,804
----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $ 16,475,126 $4,185,949 $2,752,862
=========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
26
<PAGE> 33
FUNDS IV TRUST
Statement of Changes in Net Assets (unaudited)
<TABLE>
<CAPTION>
THE CASH RESERVE THE SHORT-TERM
MONEY MARKET FUND(a) TREASURY INCOME FUND(b)
---------------------------- ----------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income......................... $ 8,268,513 $ 11,878,855 $ 456,905 $ 630,124
Net realized gain on investment
transactions................................ 4,409 -- 60,019 1,144
Net change in unrealized appreciation on
investments................................. -- -- 182,446 294,935
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.................................. 8,272,922 11,878,855 699,370 926,203
------------ ------------ ------------ ------------
Distributions to Shareholders From:
Net Investment Income:
Service Class............................... (8,268,348) (11,878,590) (456,735) (629,853)
Premium Class............................... (165) (265) (170) (271)
------------ ------------ ------------ ------------
(8,268,513) (11,878,855) (456,905) (630,124)
------------ ------------ ------------ ------------
Net Realized Capital Gain:
Service Class............................... (3,415) -- (14,408) --
Premium Class............................... -- -- (5) --
------------ ------------ ------------ ------------
(3,415) -- (14,413) --
------------ ------------ ------------ ------------
Transactions in Shares of Beneficial Interest:
Proceeds from sales of shares:
Service Class............................... 244,582,629 504,606,671 3,465,608 19,068,124
Premium Class............................... -- -- -- --
------------ ------------ ------------ ------------
244,582,629 504,606,671 3,465,608 19,068,124
------------ ------------ ------------ ------------
Net asset value of shares issued in
reinvestment of distributions:
Service Class............................. 5,088 7,113 321,815 535,484
Premium Class............................. 137 263 147 269
------------ ------------ ------------ ------------
5,225 7,376 321,962 535,753
------------ ------------ ------------ ------------
Cost of shares redeemed:
Service Class............................... (227,454,913) (229,956,257) (1,426,022) (4,633,246)
Premium Class............................... -- -- -- --
------------ ------------ ------------ ------------
(227,454,913) (229,956,257) (1,426,022) (4,633,246)
------------ ------------ ------------ ------------
Net increase in net assets derived from
transactions in shares of beneficial
interest...................................... 17,132,941 274,657,790 2,361,548 14,970,631
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS...................... 17,133,935 274,657,790 2,589,600 15,266,710
NET ASSETS:
Beginning of period........................... 274,669,021 11,231 15,277,941 11,231
------------ ------------ ------------ ------------
End of period................................. $291,802,956 $274,669,021 $17,867,541 $ 15,277,941
============= ============ ============= ============
</TABLE>
(a) Fund commenced operations on August 19, 1994.
(b) Fund commenced operations on August 26, 1994.
See accompanying notes to financial statements.
27
<PAGE> 34
FUNDS IV TRUST
Statement of Changes in Net Assets (unaudited) (continued)
<TABLE>
<CAPTION>
THE INTERMEDIATE THE BOND
BOND INCOME FUND(a) INCOME FUND(a)
---------------------------- ----------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income......................... $ 3,920,535 $ 6,011,113 $ 556,477 $ 777,560
Net realized gain (loss) on investment
transactions................................ 1,624,973 (1,054,976) 282,201 (155,212)
Net change in unrealized appreciation on
investments................................. 934,023 3,728,572 684,355 637,967
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.................................. 6,479,531 8,684,709 1,523,033 1,260,315
------------ ------------ ------------ ------------
Distributions to Shareholders From:
Net Investment Income:
Service Class............................... (3,920,352) (6,010,821) (556,302) (777,262)
Premium Class............................... (182) (292) (175) (298)
------------ ------------ ------------ ------------
(3,920,534) (6,011,113) (556,477) (777,560)
------------ ------------ ------------ ------------
Transactions in Shares of Beneficial Interest:
Proceeds from sales of shares:
Service Class............................... 18,680,087 151,855,281 16,515,140 18,704,493
Premium Class............................... -- -- -- --
------------ ------------ ------------ ------------
18,680,087 151,855,281 16,515,140 18,704,493
------------ ------------ ------------ ------------
Net asset value of shares issued in
reinvestment of distributions:
Service Class............................. 3,070,055 5,850,294 385,069 756,287
Premium Class............................. 150 290 144 295
------------ ------------ ------------ ------------
3,070,205 5,850,584 385,213 756,582
------------ ------------ ------------ ------------
Cost of shares redeemed:
Service Class............................... (23,261,225) (31,067,797) (1,083,576) (6,971,989)
Premium Class............................... -- -- -- --
------------ ------------ ------------ ------------
(23,261,225) (31,067,797) (1,083,576) (6,971,989)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets derived
from transactions in shares of beneficial
interest...................................... (1,510,933) 126,638,068 15,816,777 12,489,086
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS...................... 1,048,064 129,311,664 16,783,333 12,971,841
NET ASSETS:
Beginning of period........................... 129,322,895 11,231 12,983,072 11,231
------------ ------------ ------------ ------------
End of period................................. $130,370,959 $129,322,895 $29,766,405 $ 12,983,072
============ ============ ============ ============
</TABLE>
(a) Fund commenced operations on August 26, 1994.
See accompanying notes to financial statements.
28
<PAGE> 35
FUNDS IV TRUST
Statement of Changes in Net Assets (unaudited) (continued)
<TABLE>
<CAPTION>
THE STOCK THE AGGRESSIVE STOCK
APPRECIATION FUND(a) APPRECIATION FUND(a)
---------------------------- ----------------------------
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income......................... $ 811,985 $ 1,820,788 $ 64,109 $ 424,601
Net realized gain (loss) on investment
transactions................................ 3,676,587 (2,494,115) 1,699,432 (1,059,218)
Net change in unrealized appreciation on
investments................................. 11,986,554 15,011,177 2,422,408 4,813,042
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.................................. 16,475,126 14,337,850 4,185,949 4,178,425
------------ ------------ ------------ ------------
Distributions to Shareholders From:
Net Investment Income:
Service Class............................... (811,345) (1,820,567) (61,085) (424,543)
Premium Class............................... (37) (88) (7) (58)
------------ ------------ ------------ ------------
(811,382) (1,820,655) (61,092) (424,601)
------------ ------------ ------------ ------------
Net Realized Capital Gain:
Service Class............................... (762,295) -- (703,555) --
Premium Class............................... (35) -- (85) --
------------ ------------ ------------ ------------
(762,330) -- (703,640) --
------------ ------------ ------------ ------------
Transactions in Shares of Beneficial Interest:
Proceeds from sales of shares:
Service Class............................... 23,029,862 141,795,146 11,686,641 52,202,929
Premium Class............................... -- -- -- --
------------ ------------ ------------ ------------
23,029,862 141,795,146 11,686,641 52,202,929
------------ ------------ ------------ ------------
Net asset value of shares issued in
reinvestment of distributions:
Service Class............................. 1,498,145 1,792,471 724,851 415,956
Premium Class............................. 72 88 88 57
------------ ------------ ------------ ------------
1,498,217 1,792,559 724,939 416,013
------------ ------------ ------------ ------------
Cost of shares redeemed:
Service Class............................... (14,899,474) (24,870,794) (4,098,609) (12,172,779)
Premium Class............................... -- -- -- --
------------ ------------ ------------ ------------
(14,899,474) (24,870,794) (4,098,609) (12,172,779)
------------ ------------ ------------ ------------
Net increase in net assets derived from
transactions in shares of beneficial
interest...................................... 9,628,605 118,716,911 8,312,971 40,446,163
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS...................... 24,530,019 131,234,106 11,734,188 44,199,987
NET ASSETS:
Beginning of period........................... 131,245,337 11,231 44,211,218 11,231
------------ ------------ ------------ ------------
End of period................................. $155,775,356 $131,245,337 $55,945,406 $ 44,211,218
============= ============= ============= ============
Undistributed net investment income............. $736 $133 $3,017 --
===== ==== ======= ====
</TABLE>
(a) Fund commenced operations on August 26, 1994.
See accompanying notes to financial statements.
29
<PAGE> 36
FUNDS IV TRUST
Statement of Changes in Net Assets (unaudited) (continued)
<TABLE>
<CAPTION>
THE VALUE STOCK
APPRECIATION FUND(a)
----------------------------
SIX MONTHS PERIOD
ENDED ENDED
DECEMBER 31, JUNE 30,
1995 1995
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income.................................................... $ 254,058 $ 181,162
Net realized gain on investment transactions............................. 297,905 223,397
Net change in unrealized appreciation on investments..................... 2,200,899 1,435,442
------------ ------------
2,752,862 1,840,001
------------ ------------
Distributions to Shareholders From:
Net Investment Income:
Service Class.......................................................... (254,370) (181,187)
Premium Class.......................................................... (1) --
------------ ------------
(254,371) (181,187)
------------ ------------
Net Realized Capital Gain:
Service Class.......................................................... (372,855) --
Premium Class.......................................................... (1) --
------------ ------------
(372,856) --
------------ ------------
Transactions in Shares of Beneficial Interest:
Proceeds from sales of shares:
Service Class.......................................................... 5,069,341 19,959,592
Premium Class.......................................................... -- --
------------ ------------
5,069,341 19,959,592
------------ ------------
Net asset value of shares issued in reinvestment of distributions:
Service Class.......................................................... 608,762 180,830
Premium Class.......................................................... 1 --
------------ ------------
608,763 180,830
------------ ------------
Cost of shares redeemed:
Service Class.......................................................... (2,392,934) (1,109,805)
Premium Class.......................................................... -- --
------------ ------------
(2,392,934) (1,109,805)
------------ ------------
Net increase in net assets derived from transactions in shares of
beneficial interest...................................................... 3,285,170 19,030,617
------------ ------------
NET INCREASE IN NET ASSETS................................................. 5,410,805 20,689,431
NET ASSETS:
Beginning of period...................................................... 20,689,551 120
------------ ------------
End of period............................................................ $26,100,356 $ 20,689,551
============= ============
Distributions in excess of net investment income........................... $(338) $(25)
====== ====
</TABLE>
(a) Fund commenced operations on February 10, 1995.
See accompanying notes to financial statements.
30
<PAGE> 37
FUNDS IV TRUST
Notes to Financial Statements (unaudited)
December 31, 1995
1. DESCRIPTION AND ORGANIZATION
FUNDS IV Trust (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust was organized as a Delaware business trust on May 2, 1994 and
currently consists of eleven portfolios: The U.S. Treasury Reserve Money Market
Fund, The Cash Reserve Money Market Fund, The Short-Term Treasury Income Fund,
The Intermediate Bond Income Fund, The Bond Income Fund, The Stock Appreciation
Fund, The Aggressive Stock Appreciation Fund, The Value Stock Appreciation Fund,
The U.S. Intermediate Tax Exempt Fund, The Kansas Intermediate Tax Exempt Fund,
and The International Equity Fund (each, a "Fund", collectively, the "Funds").
Each Fund comprises two classes of shares, the Service Class and the Premium
Class. The capitalization of the Trust consists solely of an unlimited number of
shares of beneficial interest with a par value of $0.001 each.
Currently, seven of the Funds are active. The Cash Reserve Money Market
Fund commenced operations on August 19, 1994; The Short-Term Treasury Income
Fund, The Intermediate Bond Income Fund, The Bond Income Fund, The Stock
Appreciation Fund, and The Aggressive Stock Appreciation Fund commenced
operations on August 26, 1994. The Value Stock Appreciation Fund commenced
operations on February 10, 1995. As of December 31, 1995, The U.S. Treasury
Reserve Money Market Fund, The U.S. Intermediate Tax Exempt Fund, The Kansas
Intermediate Tax Exempt Fund, and The International Equity Fund had not
commenced operations.
Prior to the commencement of operations, none of the Funds had any
operations other than organization matters and the sale to FUNDS IV Distributor,
Inc. ("FFD"), the Trust's Distributor, of shares of beneficial interest
representing the initial capital of the Funds.
Each class of shares outstanding bears the same dividend, liquidation and
other rights and conditions, except that the Service Class shares and the
Premium Class shares may bear separate shareholder servicing expenses, different
transfer agency and printing and postage expenses. Each class of shares has
exclusive voting rights with respect to matters affecting only that class.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements:
A) SECURITY VALUATION: The Funds (except The Cash Reserve Money Market
Fund) value investments at the last sales price on the securities
exchange on which such securities are primarily traded. Over-the-counter
securities, or exchange traded securities for which there are no
transactions, are valued at the current bid price. Bonds and other fixed
income securities may be valued on the basis of prices provided by a
pricing service approved by the Board of Trustees. In the absence of
market quotations, investments are valued at fair value as determined in
good faith by, or at the direction of the Board of Trustees. Short-term
securities which mature in 60 days or less are valued at amortized cost,
if their term to
31
<PAGE> 38
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
maturity at purchase was 60 days or less, or by amortizing their value
on the 61st day prior to maturity, if their original term to maturity at
purchase exceeded 60 days.
Investment securities of The Cash Reserve Money Market Fund are
valued using the amortized cost method which approximates current market
value. Under this method, securities are valued at cost when purchased
and, thereafter, a constant proportionate amortization of any discount
or premium is recorded until maturity of the security.
B) INVESTMENT TRANSACTIONS AND INCOME: Investment transactions are
recorded on the trade date. Identified cost of investments sold is used
to calculate gain and loss on sales for both financial statement and
Federal income tax purposes. Interest income, including the
amortization of discount or premium, is recorded as earned. Dividend
income is recorded on the ex-dividend date.
C) DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS TO SHAREHOLDERS: Dividends from
net investment income are declared daily and paid monthly, generally on
the first business day of each month, for The Cash Reserve Money Market
Fund, The Short-Term Treasury Income Fund, The Intermediate Bond Income
Fund, and The Bond Income Fund. In the case of The Stock Appreciation
Fund, The Aggressive Stock Appreciation Fund, and The Value Stock
Appreciation Fund, dividends are paid at least annually. Each Fund will
distribute, at least annually, substantially all net capital gains, if
any, earned by the Fund. 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.
D) FEDERAL INCOME TAXES: Each Fund is a separate taxable entity for Federal
income tax purposes, qualified and intends to continue to qualify as a
"regulated investment company" under Subchapter M of the Internal
Revenue Code of 1986, as amended. By so qualifying, each Fund will not
be subject to Federal income taxes to the extent that it distributes all
of its "investment company taxable income" as defined in the Code, and
net capital gains, if any, to its shareholders. Each Fund also intends
to meet the distribution requirements to avoid the payment of an excise
tax. Accordingly, no provision for Federal income taxes is required.
E) ORGANIZATIONAL COSTS: Costs incurred in connection with the
organization and initial registration of each Fund have been deferred
and are being amortized on a straight-line basis for a five-year period
beginning with the commencement of operations of each Fund. In the
event that any of the initial shares of the Funds owned by FFD are
redeemed during the amortization period, the redemption proceeds will
be reduced by a pro rata portion of any unamortized deferred
organization expenses in the same proportion as the number of initial
32
<PAGE> 39
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
shares being redeemed bears to the number of initial shares outstanding
at the time of redemption.
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 Trust
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 and expenses, other than class-specific expenses, are
allocated daily to each class of shares based upon the proportion of
net assets of each class at the beginning of each day (for daily
dividend Funds, based on the value of outstanding settled shares).
3. INVESTMENT ADVISERS
BANK IV KANSAS, N.A. ("BANK IV") provides investment advisory services to
the Funds (except The Cash Reserve Money Market Fund). BANK IV is a wholly-owned
subsidiary of Fourth Financial Corporation ("Fourth Financial") and it acts as
the investment adviser to a wide variety of trusts, individuals, institutions
and corporations.
On January 31, 1996, Fourth Financial, the corporate parent of BANK IV (the
investment adviser to the Funds) merged, pursuant to an Agreement and Plan of
Merger (the "Merger Agreement") with Boatmen's Bancshares, Inc. ("Boatmen's").
The Merger Agreement provides, among other things, for the merger of Fourth
Financial with and into a wholly-owned subsidiary of Boatmen's (the "Merger").
The Merger resulted in one of the nation's 30 largest bank holding
companies, with estimated assets of over $40 billion. As of September 30, 1995,
Fourth Financial was the nation's 71st largest bank holding company, with assets
of over $7.5 billion, and Boatmen's was the nation's 30th largest bank holding
company with assets of approximately $33 billion. Boatmen's and its subsidiaries
provide a broad range of financial services to individuals and businesses
through offices in nine states. Boatmen's manages or otherwise oversees the
investment of over $45 billion in assets belonging to a wide range of clients,
including the Pilot Family of Funds.
On January 15, 1996, the Trustees of Funds IV Trust approved the assignment
of the Trust's advisory contract with BANK IV that is deemed to occur upon the
consummation of this Merger.
AMR Investment Services, Inc. ("AMR") provides investment advisory services
to The Cash Reserve Money Market Fund. AMR is a wholly-owned subsidiary of AMR
Corporation, the parent company of American Airlines, Inc. It was organized in
1986 to provide business management, advisory, administrative, and asset
management consulting services.
Pursuant to the separate Advisory Agreements, BANK IV and AMR act as
Investment Advisers and, subject to the supervision and direction of the Trust's
Board of Trustees, direct the investments of the Funds in accordance with their
investment objectives and policies, make investment decisions and place orders
to purchase and sell securities for the Funds. As compensation for their
investment advisory services, the Advisers are each entitled to receive from the
respective Funds they advise a
33
<PAGE> 40
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
monthly fee at an annual percentage rate of the average daily net assets of the
Funds as indicated below:
<TABLE>
<S> <C>
The Cash Reserve Money Market Fund................................... 0.200%
The Short-Term Treasury Income Fund.................................. 0.300%
The Intermediate Bond Income Fund.................................... 0.400%
The Bond Income Fund................................................. 0.400%
The Stock Appreciation Fund.......................................... 0.650%
The Aggressive Stock Appreciation Fund............................... 0.745%
The Value Stock Appreciation Fund.................................... 0.650%
</TABLE>
For the six months ended December 31, 1995, BANK IV and AMR were entitled
to and received investment advisory fees as indicated below:
<TABLE>
<CAPTION>
BANK IV AMR
-------- --------
<S> <C> <C>
The Cash Reserve Money Market Fund....................... -- $299,764
The Short-Term Treasury Income Fund...................... $ 24,589 --
The Intermediate Bond Income Fund........................ 265,658 --
The Bond Income Fund..................................... 40,077 --
The Stock Appreciation Fund.............................. 471,690 --
The Aggressive Stock Appreciation Fund................... 192,062 --
The Value Stock Appreciation Fund........................ 75,914 --
</TABLE>
4. ADMINISTRATOR
Furman Selz LLC, formerly Furman Selz Incorporated ("Furman Selz") serves
as the Trust's Administrator. Pursuant to a Administrative Services Contract
between the Trust and Furman Selz, Furman Selz provides management and
administrative services for the operation of the Funds, furnishes office space
and certain facilities required for conducting the business of the Funds and
pays the compensation of the Trust's officers affiliated with Furman Selz.
As compensation for its administrative services, Furman Selz receives a
monthly fee at an annual rate of 0.15% of each Fund's average daily net assets.
For the six months ended December 31, 1995, Furman Selz was entitled to and
voluntarily waived administrative services fees as indicated below:
<TABLE>
<CAPTION>
FURMAN SELZ
------------------
ENTITLED WAIVED
-------- -------
<S> <C> <C>
The Cash Reserve Money Market Fund........................ $224,823 --
The Short-Term Treasury Income Fund....................... 12,294 $12,294
The Intermediate Bond Income Fund......................... 99,622 --
The Bond Income Fund...................................... 15,029 9,129
The Stock Appreciation Fund............................... 108,851 --
The Aggressive Stock Appreciation Fund.................... 38,671 --
The Value Stock Appreciation Fund......................... 17,519 14,244
</TABLE>
34
<PAGE> 41
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
In addition, Furman Selz also provides fund accounting services for the
Funds pursuant to a Fund Accounting Agreement between the Trust and Furman Selz.
As compensation for its accounting services, Furman Selz receives from each Fund
an annual fee of $30,000 plus out-of-pocket expenses.
Currently, California is the only state imposing limitations on the
expenses of the Funds. If, in any fiscal year, the total expenses of a Fund
(excluding taxes, interest, distribution expenses, brokerage commissions,
certain portfolio transaction expenses, other expenditures which are capitalized
in accordance with generally accepted accounting principles and extraordinary
expenses, but including the advisory and administrative services fees) exceed
the expense limitations applicable to that Fund imposed by the securities
regulations, BANK IV, or AMR (with respect to The Cash Reserve Money Market Fund
only), and Furman Selz will reimburse the Funds for a portion of the excess with
BANK IV or AMR paying 60% and Furman Selz the remaining 40% of the excess.
Aggregate annual expenses shall not normally exceed 2 1/2% of the first $30
million of the average net assets, 2% of the next $70 million of the average net
assets, and 1 1/2% of the remaining average net assets. For the six months ended
December 31, 1995, there were no reimbursements required as a result of these
expense limitations for the Funds.
5. SERVICE ORGANIZATIONS
The Trust contracts with banks, trust companies, brokers-dealers, or other
financial organizations ("Service Organizations") to provide certain
administrative services for the Funds. Such services, which are described more
fully in the Statement of Additional Information, may include, among other
things: (i) maintaining shareholder accounts and records; (ii) processing
purchase and redemption transactions; (iii) providing periodic statements
showing a shareholder's account balance; and (iv) furnishing periodic and annual
statements, annual reports, prospectuses, and other communications from the
Funds to shareholders.
Each Service Organization has agreed to transmit a schedule to its clients
of any additional fees or conditions that may be applicable to the investment of
the Funds' shares.
For the services provided, the Funds may pay fees to Service Organizations
at an annual rate of up to 0.05% of the average daily net asset value of the
Funds' Service Class shares owned by shareholders with whom the Service
Organization has a servicing relationship. The Premium Class shares may bear an
additional shareholder servicing charge of up to 0.50%, annually, of the average
daily net assets. For the six months ended December 31, 1995, Service Class
shares and Premium Class shares incurred shareholder servicing fees of 0.05%.
35
<PAGE> 42
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
For the six months ended December 31, 1995, BANK IV earned shareholder
servicing fees as indicated below:
<TABLE>
<S> <C>
The Cash Reserve Money Market Fund................................. $74,941
The Short-Term Treasury Income Fund................................ 4,098
The Intermediate Bond Income Fund.................................. 33,208
The Bond Income Fund............................................... 5,010
The Stock Appreciation Fund........................................ 36,284
The Aggressive Stock Appreciation Fund............................. 12,890
The Value Stock Appreciation Fund.................................. 5,839
</TABLE>
6. OTHER TRANSACTIONS WITH AFFILIATES
The Trust retains FFD, a subsidiary of Furman Selz, to serve as principal
underwriter for the shares of the Funds pursuant to a Distribution Contract. FFD
will use its best efforts to maintain a broad distribution of the Funds' shares
among bona fide investors and may enter into selling group agreements with
responsible dealers as well as sell the Funds' shares to individual investors.
Pursuant to a Services Agreement between the Trust and Furman Selz, Furman
Selz acts as transfer agent for the Funds and assists the Trust with certain
transfer and dividend disbursing agent functions. For these transfer agent
services, Furman Selz receives a fee of $15 per account per year plus
out-of-pocket expenses.
For the six months ended December 31, 1995, Furman Selz earned transfer
agent fees as indicated below:
<TABLE>
<S> <C>
The Cash Reserve Money Market Fund.................................. $ 202
The Short-Term Treasury Income Fund................................. 1,291
The Intermediate Bond Income Fund................................... 5,546
The Bond Income Fund................................................ 1,327
The Stock Appreciation Fund......................................... 5,606
The Aggressive Stock Appreciation Fund.............................. 4,204
The Value Stock Appreciation Fund................................... 1,216
</TABLE>
BANK IV serves as the Trust's custodian and receives a monthly fee at an
annual rate of 0.03% of each Fund's average daily net assets.
For the six months ended December 31, 1995, BANK IV earned custodian fees
as indicated below:
<TABLE>
<S> <C>
The Cash Reserve Money Market Fund................................. $44,964
The Short-Term Treasury Income Fund................................ 2,459
The Intermediate Bond Income Fund.................................. 19,924
The Bond Income Fund............................................... 3,006
The Stock Appreciation Fund........................................ 21,770
The Aggressive Stock Appreciation Fund............................. 7,734
The Value Stock Appreciation Fund.................................. 3,506
</TABLE>
36
<PAGE> 43
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
7. PORTFOLIO SECURITY TRANSACTIONS
The cost of securities purchased ("purchases") and proceeds from securities
sold ("sales"), (excluding short-term securities) for the six months ended
December 31, 1995 were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT
COMMON STOCKS AND BONDS OBLIGATIONS
------------------------- -------------------------
PURCHASES SALES PURCHASES SALES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
The Short-Term Treasury Income Fund.......... -- -- $10,822,297 $ 8,584,797
The Intermediate Bond Income Fund............ $34,208,695 $ 3,238,593 57,893,398 59,523,839
The Bond Income Fund......................... 3,520,508 2,921,520 26,633,742 11,771,312
The Stock Appreciation Fund.................. 57,926,289 50,117,284 -- --
The Aggressive Stock Appreciation Fund....... 29,137,639 21,285,390 -- --
The Value Stock Appreciation Fund............ 8,720,475 3,866,082 -- --
</TABLE>
Unrealized appreciation (depreciation) at December 31, 1995 based on cost
of securities for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
AGGREGATE UNREALIZED UNREALIZED UNREALIZED
COST APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
The Short-Term Treasury Income Fund......... $ 17,130,757 $ 477,381 -- $ 477,381
The Intermediate Bond Income Fund........... 124,186,643 4,665,121 $ 2,526 4,662,595
The Bond Income Fund........................ 28,235,309 1,322,322 -- 1,322,322
The Stock Appreciation Fund................. 126,803,000 28,645,516 1,647,785 26,997,731
The Aggressive Stock Appreciation Fund...... 49,432,519 8,723,946 1,488,496 7,235,450
The Value Stock Appreciation Fund........... 2,634,835 3,769,737 133,396 3,636,341
</TABLE>
8. CAPITAL SHARE TRANSACTIONS
The Trust is authorized to issue an unlimited number of shares of
beneficial interest with a par value of $0.001 each. Transactions in shares of
the Funds for the periods from commencement of operation through June 30, 1995
and the six months ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
THE CASH RESERVE MONEY MARKET FUND
-----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
---------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
------------ ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold..................................... 244,582,629 -- 504,606,671 --
Shares issued in reinvestment of
distributions................................. 5,088 137 7,113 263
------------ ------- ------------ -------
244,587,717 137 504,613,784 263
Shares redeemed................................. (227,454,913) -- (229,956,257) --
------------ ------- ------------ -------
Net increase in shares.......................... 17,132,804 137 274,657,527 263
Beginning of period............................. 274,663,143 5,878 5,616 5,615
------------ ------- ------------ -------
End of period................................... 291,795,947 6,015 274,663,143 5,878
=========== ======= =========== =======
</TABLE>
37
<PAGE> 44
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
THE SHORT-TERM TREASURY INCOME FUND
-----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
---------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
------------ ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold..................................... 338,801 -- 1,909,207 --
Shares issued in reinvestment of
distributions................................. 31,516 14 53,737 28
------------ ------- ------------ -------
370,317 14 1,962,944 28
Shares redeemed................................. (139,548) -- (465,936) --
------------ ------- ------------ -------
Net increase in shares.......................... 230,769 14 1,497,008 28
Beginning of period............................. 1,497,570 589 562 561
------------ ------- ------------ -------
End of period................................... 1,728,339 603 1,497,570 589
=========== ======= =========== =======
</TABLE>
<TABLE>
<CAPTION>
THE INTERMEDIATE BOND INCOME FUND
----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
--------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
----------- ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold...................................... 1,770,293 -- 15,236,808 --
Shares issued in reinvestment of distributions... 362,206 14 589,850 30
----------- ------- ------------ -------
2,132,499 14 15,826,658 30
Shares redeemed.................................. (2,274,716) -- (3,141,325) --
----------- ------- ------------ -------
Net increase (decrease) in shares................ (142,217) 14 12,685,333 30
Beginning of period.............................. 12,685,895 591 562 561
----------- ------- ------------ -------
End of period.................................... 12,543,678 605 12,685,895 591
========== ======= =========== =======
</TABLE>
<TABLE>
<CAPTION>
THE BOND INCOME FUND
----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
--------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
----------- ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold...................................... 1,580,403 -- 1,872,843 --
Shares issued in reinvestment of distributions... 36,948 14 76,453 30
----------- ------- ------------ -------
1,617,351 14 1,949,296 30
Shares redeemed.................................. (102,123) -- (696,007) --
----------- ------- ------------ -------
Net increase in shares........................... 1,515,228 14 1,253,289 30
Beginning of period.............................. 1,253,851 591 562 561
----------- ------- ------------ -------
End of period.................................... 2,769,079 605 1,253,851 591
========== ======= =========== =======
</TABLE>
38
<PAGE> 45
FUNDS IV TRUST
Notes to Financial Statements (unaudited) (continued)
December 31, 1995
<TABLE>
<CAPTION>
THE STOCK APPRECIATION FUND
----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
--------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
----------- ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold...................................... 1,970,695 -- 14,137,595 --
Shares issued in reinvestment of distributions... 123,349 6 174,961 9
----------- ------- ------------ -------
2,094,044 6 14,312,556 9
Shares redeemed.................................. (1,268,660) -- (2,437,423) --
----------- ------- ------------ -------
Net increase in shares........................... 825,384 6 11,875,133 9
Beginning of period.............................. 11,875,695 570 562 561
----------- ------- ------------ -------
End of period.................................... 12,701,079 576 11,875,695 570
========== ======= =========== =======
</TABLE>
<TABLE>
<CAPTION>
THE AGGRESSIVE STOCK APPRECIATION FUND
----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
--------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
----------- ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold...................................... 1,021,036 -- 5,220,643 --
Shares issued in reinvestment of distributions... 63,346 8 41,285 6
----------- ------- ------------ -------
1,084,382 8 5,261,928 6
Shares redeemed.................................. (356,614) -- (1,197,549) --
----------- ------- ------------ -------
Net increase in shares........................... 727,768 8 4,064,379 6
Beginning of period.............................. 4,064,941 567 562 561
----------- ------- ------------ -------
End of period.................................... 4,792,709 575 4,064,941 567
========== ======= =========== =======
</TABLE>
<TABLE>
<CAPTION>
THE VALUE STOCK APPRECIATION FUND
----------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995
--------------------- ----------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
----------- ------- ------------ -------
<S> <C> <C> <C> <C>
Shares sold...................................... 439,343 -- 1,978,935 --
Shares issued in reinvestment of distributions... 50,807 -- 16,932 --
----------- ------- ------------ -------
490,150 -- 1,995,867 --
Shares redeemed.................................. (209,739) -- (103,384) --
----------- ------- ------------ -------
Net increase in shares........................... 280,411 -- 1,892,483 --
Beginning of period.............................. 1,892,489 6 6 6
----------- ------- ------------ -------
End of period.................................... 2,172,900 6 1,892,489 6
========== ======= =========== =======
</TABLE>
39
<PAGE> 46
FUNDS IV TRUST
Financial Highlights (unaudited)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE CASH RESERVE MONEY MARKET FUND
------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------- -------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
-------- ------- -------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- -------- -------
Income from Investment Operations:
Net investment income............................... 0.03 0.03 0.05 0.05
-------- ------- -------- -------
Less Distributions:
Dividends from net investment income................ (0.03) (0.03 ) (0.05) (0.05 )
-------- ------- -------- -------
Net Asset Value, End of Period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== =======
Total Return**........................................ 2.80% 2.80% 4.74% 4.74%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands)............ $291,797 $6 $274,663 $6
Ratios of Net Expenses to Average Net Assets+....... 0.49% 0.49% 0.50% 0.50%
Ratios of Expenses Before Effect of Waivers+........ 0.49% 0.99% 0.54% 1.04%
Ratios of Net Investment Income to
Average Net Assets+.............................. 5.51% 5.51% 5.40% 5.40%
- ---------------
* Fund commenced operations on August 19, 1994.
** Total return not annualized.
+ Annualized.
</TABLE>
40
<PAGE> 47
FUNDS IV TRUST
Financial Highlights (unaudited) (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE SHORT-TERM TREASURY INCOME FUND
----------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------ ------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................... $ 10.20 $10.20 $ 10.00 $10.00
------- ------- ------- -------
Income from Investment Operations:
Net investment income................................. 0.28 0.28 0.47 0.47
Net realized and unrealized gain on securities........ 0.14 0.14 0.20 0.20
------- ------- ------- -------
Total from Investment Operations...................... 0.42 0.42 0.67 0.67
------- ------- ------- -------
Less Distributions From:
Net investment income................................. (0.28) (0.28) (0.47) (0.47)
Net realized capital gain............................. (0.01) (0.01) -- --
------- ------- ------- -------
Total Distributions................................... (0.29) (0.29) (0.47) (0.47)
------- ------- ------- -------
Net Asset Value, End of Period.......................... $ 10.33 $10.33 $ 10.20 $10.20
======= ======= ======= =======
Total Return**.......................................... 4.23% 4.23% 6.95% 6.95%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands).............. $17,862 $6 $15,272 $6
Ratios of Net Expenses to Average Net Assets+......... 0.73% 0.73% 0.75% 0.75%
Ratios of Expenses Before Effect of Waivers+.......... 0.88% 1.38% 1.04% 1.54%
Ratios of Net Investment Income to
Average Net Assets+................................ 5.56% 5.56% 5.65% 5.65%
Portfolio Turnover Rate............................... 53.77% 53.77% 83.28% 83.28%
- ---------------
* Fund commenced operations on August 26, 1994.
** Total return not annualized.
+ Annualized.
</TABLE>
41
<PAGE> 48
FUNDS IV TRUST
Financial Highlights (unaudited) (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE INTERMEDIATE BOND INCOME FUND
------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------- -------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
-------- ------- -------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................... $ 10.19 $10.19 $ 10.00 $10.00
-------- ------- -------- -------
Income from Investment Operations:
Net investment income................................ 0.30 0.30 0.51 0.51
Net realized and unrealized gain on securities....... 0.20 0.20 0.19 0.19
-------- ------- -------- -------
Total from Investment Operations..................... 0.50 0.50 0.70 0.70
-------- ------- -------- -------
Less Distributions:
Dividends from net investment income................. (0.30) (0.30) (0.51) (0.51)
-------- ------- -------- -------
Net Asset Value, End of Period......................... $ 10.39 $10.39 $ 10.19 $10.19
======== ======= ======== =======
Total Return**......................................... 5.02% 5.02% 7.26% 7.26%
Ratios/Supyplemental Data:
Net Assets, End of Period (in thousands)............. $130,365 $6 $129,317 $6
Ratios of Net Expenses to Average Net Assets+........ 0.75% 0.75% 0.75% 0.75%
Ratios of Expenses Before Effect of Waivers+......... 0.75% 1.25% 0.77% 1.27%
Ratios of Net Investment Income to Average Net
Assets+ ........................................... 5.89% 5.89% 6.10% 6.10%
Portfolio Turnover Rate.............................. 71.77% 71.77% 107.54% 107.54%
- ---------------
* Fund commenced operations on August 26, 1994.
** Total return not annualized.
+ Annualized.
</TABLE>
42
<PAGE> 49
FUNDS IV TRUST
Financial Highlights (unaudited) (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE BOND INCOME FUND
----------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------ ------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................... $ 10.35 $10.35 $ 10.00 $10.00
------- ------- ------- -------
Income from Investment Operations:
Net investment income................................. 0.29 0.29 0.52 0.52
Net realized and unrealized gain on securities........ 0.40 0.40 0.35 0.35
------- ------- ------- -------
Total from Investment Operations...................... 0.69 0.69 0.87 0.87
------- ------- ------- -------
Less Distributions:
Dividends from net investment income.................. (0.29) (0.29) (0.52) (0.52)
------- ------- ------- -------
Net Asset Value, End of Period.......................... $ 10.75 $10.75 $ 10.35 $10.35
======= ======= ======= =======
Total Return**.......................................... 6.80% 6.80% 9.05% 9.05%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands).............. $29,760 $6 $12,977 $6
Ratios of Net Expenses to Average Net Assets+......... 0.91% 0.91% 0.96% 0.96%
Ratios of Expenses Before Effect of Waivers+.......... 1.00% 1.50% 1.11% 1.61%
Ratios of Net Investment Income to Average Net
Assets+ ............................................ 5.51% 5.51% 6.21% 6.21%
Portfolio Turnover Rate............................... 76.67% 76.67% 149.36% 149.36%
- ---------------
* Fund commenced operations on August 26, 1994.
** Total return not annualized.
+ Annualized.
</TABLE>
43
<PAGE> 50
FUNDS IV TRUST
Financial Highlights (unaudited) (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE STOCK APPRECIATION FUND
------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------- -------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
-------- ------- -------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................. $ 11.05 $11.05 $ 10.00 $10.00
-------- ------- -------- -------
Income from Investment Operations:
Net investment income............................... 0.07 0.07 0.16 0.16
Net realized and unrealized gain on securities...... 1.27 1.27 1.05 1.05
-------- ------- -------- -------
Total from Investment Operations.................... 1.34 1.34 1.21 1.21
-------- ------- -------- -------
Less Distributions From:
Net investment income............................... (0.07) (0.07) (0.16) (0.16)
Net realized capital gains.......................... (0.06) (0.16) -- --
-------- ------- -------- -------
Total Distributions................................. (0.13) (0.13) (0.16) (0.16)
-------- ------- -------- -------
Net Asset Value, End of Period........................ $ 12.26 $12.26 $ 11.05 $11.05
======== ======= ======== =======
Total Return**........................................ 12.11% 12.11% 12.19% 12.19%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands)............ $155,768 $7 $131,239 $6
Ratios of Net Expenses to Average Net Assets+....... 0.98% 0.98% 1.00% 1.00%
Ratios of Expenses Before Effect of Waivers+........ 0.98% 1.48% 1.02% 1.52%
Ratios of Net Investment Income to
Average Net Assets+.............................. 1.12% 1.12% 1.89% 1.89%
Portfolio Turnover Rate............................. 35.63% 35.63% 46.37% 46.37%
- ---------------
* Fund commenced operations on August 26, 1994.
** Total return not annualized.
+ Annualized.
</TABLE>
44
<PAGE> 51
FUNDS IV TRUST
Financial Highlights (unaudited) (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE AGGRESSIVE STOCK APPRECIATION FUND
----------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------ ------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................... $ 10.87 $10.87 $ 10.00 $10.00
------- ------- ------- -------
Income from Investment Operations:
Net investment income................................. 0.02 0.02 0.10 0.10
Net realized and unrealized gain on securities........ 0.94 0.94 0.87 0.87
------- ------- ------- -------
Total from Investment Operations...................... 0.96 0.96 0.97 0.97
------- ------- ------- -------
Less Distributions From:
Net investment income................................. (0.02) (0.02) (0.10) (0.10)
Net realized capital gains............................ (0.14) (0.14) -- --
------- ------- ------- -------
Total Distributions................................... (0.16) (0.16) (0.10) (0.10)
------- ------- ------- -------
Net Asset Value, End of Period.......................... $ 11.67 $11.67 $ 10.87 $10.87
======= ======= ======= =======
Total Return**.......................................... 8.89% 8.89% 9.81% 9.81%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands).............. $55,939 $6 $44,205 $6
Ratios of Net Expenses to Average Net Assets+......... 1.19% 1.19% 1.23% 1.23%
Ratios of Expenses Before Effect of Waivers+.......... 1.19% 1.69% 1.23% 1.73%
Ratios of Net Investment Income to
Average Net Assets+................................ 0.25% 0.25% 1.27% 1.27%
Portfolio Turnover Rate............................... 42.91% 42.91% 72.11% 72.11%
- ---------------
* Fund commenced operations on August 26, 1994.
** Total return not annualized.
+ Annualized.
</TABLE>
45
<PAGE> 52
FUNDS IV TRUST
Financial Highlights (unaudited) (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
THE VALUE STOCK APPRECIATION FUND
----------------------------------------
SIX MONTHS ENDED PERIOD ENDED
DECEMBER 31, 1995 JUNE 30, 1995*
------------------ ------------------
SERVICE PREMIUM SERVICE PREMIUM
CLASS CLASS CLASS CLASS
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................... $ 10.93 $10.93 $ 10.00 $10.00
------- ------- ------- -------
Income from Investment Operations:
Net investment income................................. 0.13 0.13 0.10 0.10
Net realized and unrealized gain on securities........ 1.25 1.25 0.93 0.93
------- ------- ------- -------
Total from Investment Operations...................... 1.38 1.38 1.03 1.03
------- ------- ------- -------
Less Distributions From:
Net investment income................................. (0.13) (0.13) (0.10) (0.10)
Net realized capital gain............................. (0.17) (0.17) -- --
------- ------- ------- -------
Total Distributions................................... (0.30) (0.30) (0.10) (0.10)
------- ------- ------- -------
Net Asset Value, End of Period.......................... $ 12.01 $12.01 $ 10.93 $10.93
======= ======= ======= =======
Total Return**.......................................... 12.64% 12.64% 10.32% 10.32%
Ratios/Supplemental Data:
Net Assets, End of Period (in thousands).............. $26,100 -- $20,690 --
Ratios of Net Expenses to Average Net Assets+......... 1.15% 1.15% 1.18% 1.18%
Ratios of Expenses Before Effect of Waivers+.......... 1.24% 1.74% 1.33% 1.83%
Ratios of Net Investment Income to Average Net
Assets+ ............................................ 2.17% 2.17% 2.52% 2.52%
Portfolio Turnover Rate............................... 19.38% 19.38% 16.74% 16.74%
- ---------------
* Fund commenced operations on February 10, 1995.
** Total return not annualized.
+ Annualized.
</TABLE>
46
<PAGE> 53
(This Page Intentionally Left Blank)
<PAGE> 54
(This Page Intentionally Left Blank)
<PAGE> 55
FUNDS IV TRUST
BOARD OF TRUSTEES
<TABLE>
<S> <C>
JOHN J. PILEGGI+ CHAIRMAN OF THE BOARD
Senior Managing Director, Furman Selz LLC
G.L. BEST* Vice President of Finance and Administration,
Williams Energy Ventures
TERRY L. CARTER* Senior Vice President, QuikTrip Corporation
ARTHUR B. KRAUSE Executive Vice President and Chief Financial Officer,
Sprint Corporation
GEORGE MILEUSNIC* Chief Financial Officer, The Coleman Company, Inc.
PATRICK J. RYAN* Vice Chairman, Oklahoma Gas and Electric Company
</TABLE>
* Member of Audit and Nominating Committees
+ Trustee who is an "interested person" of the
Trust, as that term is defined in the
Investment Company Act of 1940.
- --------------------------------------------------------------------------------
OFFICERS
<TABLE>
<S> <C>
JOHN J. PILEGGI President
DONALD E. BROSTROM Vice President and Treasurer
JOAN V. FIORE Secretary
THERESA DONOVAN Assistant Secretary
SHERYL HIRSCHFELD Assistant Secretary
</TABLE>
<PAGE> 56
FUNDS IV
Address for:
TRUST CLIENTS OF BANK IV
- ------------------------
P.O. Box 1122
Wichita, KS 67201-1122
INVESTMENT ADVISERS
- -------------------
BANK IV Kansas, N.A.
100 North Broadway
Wichita, Kansas 67202
AMR Investment Services, Inc.
4333 Amon Carter Blvd., MD 5645
Fort Worth, Texas 76155
(Cash Reserve Money Markey Fund Only)
ADMINISTRATOR
- -------------
Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
- -----------
FUNDS IV Distributor, Inc.
230 Park Avenue
New York, New York 10169
CUSTODIAN
- ---------
BANK IV Kansas, N.A.
100 North Broadway
Wichita, Kansas 67202
COUNSEL
- -------
Baker & McKenzie
805 Third Avenue
New York, New York 10022
FUNDS IV Distributor, Inc. is not a bank, and shares of FUNDS IV Trust are not
deposits or obligations of, or endorsed or guaranteed by, BANK IV Kansas, N.A.
or its affiliates, nor are they federally insured by the Federal Deposit
Insurance Corporation ("FDIC"), the Federal Reserve Board or any other
agency. Shares of the Funds involve investment risk, including possible loss
of principal. There is no assurance that the Cash Reserve Money Market Fund
will be able to maintain a stable net asset value of $1.00 per share.
FF 1295
FUNDS IV
FUNDS IV Trust
A Family of Mutual Funds
SEMI-ANNUAL REPORT
December 31, 1995
Investment Advisers
BANK IV KANSAS, N.A.
AMR INVESTMENT SERVICES, INC.
(Cash Reserve Money Market Fund Only)
