<PAGE>
Corporate Data
Transfer and Dividend Disbursing Agent
ChaseMellon
Shareholder Services
Overpeck Center
85 Challenger Road
Richfield Park, New Jersey 07660
Custodian
UMB Bank, N.A.
Legal Counsel
Bell, Boyd & Lloyd
Address of Company
200 West Madison Street
Suite 3510
Chicago, Illinois 60606
312-236-9190 or 800-BKF-1891
Web Site
www.bakerfentress.com
Baker, Fentress & Company
Report to Shareholders
INVESTING
WITH A
LONG-TERM
PERSPECTIVE
FIRST QUARTER
MARCH 31, 1999
The Company's Report to Shareholders is printed on recycled paper. We encourage
recycling and use of recycled products.
<PAGE>
To Our Shareholders
The strength of the U.S. stock market's continued advance remained extremely
narrow through the first quarter of 1999. BKF's net asset value total return
over this period was up 2.9%, while our market value total return was down 1.6%.
Comparable market returns were:
S&P 500 Index 5.0%
Russell 1000 Value Index 1.9%
Large Cap Value
Mutual Funds (1) 1.0%
(1) Source: This is the mean total return for 529 mutual
funds categorized as large cap value funds by
Morningstar, Inc.
The market value total return for the first quarter was negatively impacted
by a widening of our discount from 22.5% to 24.9% during the 1st quarter.
The recent market advance has been dominated by large cap growth,
technology, and Internet stocks at the expense of more modestly valued sectors.
The Baker Fentress public portfolio remains focused on a large cap value style.
This approach may not keep pace during certain steep market advances, but we
believe our strategy should result in solid risk-adjusted total returns over an
entire market cycle.
We believe that our performance should be measured in terms of total
return, instead of per share price appreciation. This is illustrated by the
following chart. It compares the BKF total return based on net asset value,
including reinvested dividends, to simple per share price appreciation over the
three years ended March 31, 1999. The total return over this three-year period
was 33.2%, compared to a decline of 18.6% if you only factor in price
appreciation.
BKF TOTAL RETURN VS. PRICE APPRECIATION
THREE YEARS ENDED MARCH 31, 1999
[CHART]
Baker, Fentress & Company
Shareholder value with and without dividends reinvested
3/31/96-3/31/99
<TABLE>
<CAPTION>
Date Price appreciation Total return
<S> <C> <C>
3/31/96
4/30/96 4.05% 4.05%
5/31/96 5.41% 6.47%
6/30/96 3.38% 4.42%
7/31/96 -3.38% -2.40%
8/31/96 -0.68% 0.33%
9/30/96 3.38% 4.42%
10/31/96 0.68% 1.69%
11/30/96 -6.76% 6.88%
12/31/96 -8.78% 4.55%
1/31/97 -4.05% 9.98%
2/28/97 -4.05% 9.98%
3/31/97 -3.38% 10.75%
4/30/97 -2.70% 11.52%
5/31/97 0.00% 15.83%
6/30/97 6.78% 23.86%
7/31/97 12.16% 29.92%
8/31/97 7.43% 24.44%
9/30/97 12.84% 30.70%
10/31/97 8.45% 25.62%
11/30/97 -2.36% 29.53%
12/31/97 -1.35% 30.87%
1/31/98 -1.35% 30.87%
2/28/98 4.39% 38.49%
3/31/98 1.35% 48.67%
4/30/98 0.00% 46.69%
5/31/98 0.68% 47.68%
6/30/98 -1.01% 45.20%
7/31/98 -0.68% 45.70%
8/31/98 -10.47% 31.32%
9/30/98 -11.82% 29.34%
10/31/98 -7.49% 35.78%
11/30/98 -13.85% 40.91%
12/31/98 -17.29% 35.38%
1/31/99 -18.55% 36.49%
2/28/99 -18.58% 33.17%
3/31/99 -18.58% 33.17%
</TABLE>
NEW BAKER FENTRESS WEB SITE
At the beginning of April, we introduced a new web site. You can locate it on
the Internet at www.bakerfentress.com. The site contains:
. Daily net asset value information
. Market value total return over the last 12 months
. Summary financial information
. Descriptions of our major holdings
. Recent shareholder reports
. How to request additional information from the Company or ask us
questions via e-mail
We welcome you to our new home on the Internet and are interested in your
feedback.
Baker, Fentress & Company 1st Quarter Report 1999 1
<PAGE>
To Our Shareholders (continued)
REVISED DISTRIBUTION SCHEDULE
Beginning this year, we plan to make four distributions per year, compared to
two, as has been our practice in recent years. We believe shareholders will
appreciate a more frequent payment cycle. Our first ordinary income dividend of
$0.30 per share is payable June 15, 1999 to shareholders of record on May 14. We
plan to make a capital gain distribution in August, followed by the second
income dividend in November and a second capital gain distribution in December.
Next year we plan to make payments in March, June, October and December.
LEVCO
Total assets under Levco's management as of March 31, 1999 were $8.5 billion
compared to $8.3 billion at the end of 1998. Unaudited total revenues for the
three months ended March 31, 1999 were $11.6 million compared to $10.7 million
for the first quarter of 1998.
Early in April, Jessica Bibliowicz announced her resignation from Levco and
from the board of directors of the Company. During her time at Levco, the firm
developed and expanded its retail marketing, institutional marketing, and client
servicing areas and also increased the depth of its investment management team.
We believe that the infrastructure of the firm is solid and extend our best
wishes to Jessica in her new endeavors.
CONSOLIDATED-TOMOKA
Consolidated-Tomoka Land Co. (AMEX symbol: CTO) completed the sale of its citrus
business, Lake Placid Groves, on April 7, 1999. The sale for $30.9 million
generated a capital gain of approximately $8.0 million and cash flow of $22.0
million after income taxes.
The cash proceeds from the sale have been invested in short-term investments.
The eventual use of these funds is still under consideration by CTO's Board of
Directors. Now that this sale is complete, CTO will be able to concentrate its
efforts on the development of its land holdings in the Daytona Beach area.
PORTFOLIO SECTOR WEIGHTINGS
THREE YEARS ENDED MARCH 31,1999
[Chart Appears Here]
NEW TRANSFER AGENT
Beginning in May, ChaseMellon Shareholder Services will become our transfer
agent. We hope this change will result in improved shareholder service. You will
be receiving some information within the next couple of weeks concerning new
contact information.
2 Baker, Fentress & Company 1st Quarter Report 1999
<PAGE>
QUARTERLY PORTFOLIO INFORMATION
Beginning with this quarterly report, we will include expanded portfolio
information we hope you will find useful. It appears immediately following this
letter.
ANNUAL SHAREHOLDERS' MEETING
We held our annual meeting in Chicago on April 22, 1999 to re-elect five
directors and ratify the appointment of Ernst & Young LLP as our auditors for
1999. The results of this meeting can be found on page 8 of this report.
James P. Gorter
Chairman of the Board
John A. Levin
President and CEO
INDUSTRY SECTOR WEIGHTINGS--PUBLIC PORTFOLIO
<TABLE>
<CAPTION>
AS OF MARCH 31, 1999
Percent
of NAV*
--------
<S> <C>
Basic Materials......... 3.2%
Capital Goods........... 12.8
Communication Services.. 4.6
Consumer Cyclical....... 9.0
Consumer Staples........ 14.2
Energy.................. 5.6
Financials.............. 15.9
Health Care............. 3.0
Technology.............. 14.8
Utilities............... 9.2
Cash Equivalents........ 7.7
--------
Total................... 100.0%
========
</TABLE>
*Public Portfolio only
PUBLIC PORTFOLIO STATISTICS
<TABLE>
<CAPTION>
AS OF MARCH 31, 1999
Weighted Average
- ----------------
<S> <C>
P/E Ratio--Last 4 quarters............... 22.6x
Earnings Growth Rate--Last 5 years...... 13.0%
Price to Book Ratio..................... 2.7x
Market Cap.............................. 36.0 billion
</TABLE>
TOP TEN HOLDINGS - TOTAL PORTFOLIO
AS OF MARCH 31, 1999
Our top ten holdings as a percent of net assets at
March 31, 1999 were:
<TABLE>
<S> <C>
1. Levin Management (with its subsidiaries,
including Levco) Investment advisor.................... 14.7%
2. Consolidated-Tomoka, Florida real estate............... 8.8
3. Citadel Communications, Radio broadcasting............. 7.8
4. Tribune, Publishing and broadcasting................... 3.3
5. MediaOne Group, Communication services................. 2.9
6. Texas Instruments, Electronic components
and semiconductors..................................... 2.3
7. XL Capital, Insurance.................................. 2.0
8. Hewlett-Packard, Computer technology................... 1.8
9. KeySpan Energy, Electric and gas utility............... 1.8
10. Potomac Electric Power, Electric and gas utility....... 1.8
-----
Total............................................... 47.2%
=====
</TABLE>
Baker, Fentress & Company 1st Quarter Report 1999 3
<PAGE>
Statement of Investments
<TABLE>
<CAPTION>
March 31, 1999 - Unaudited Shares Value
------- -----------
INVESTMENTS IN UNAFFILIATED ISSUERS -- 61.08%
Common Stock -- 54.99%
<S> <C> <C>
Basic Materials -- 2.09%
E.I. du Pont de Nemours and Company........... 65,000 $ 3,774,095
Getchell Gold Corporation (b)................. 26,900 704,457
Monsanto Company.............................. 244,300 11,222,653
Minerals Technologies Inc..................... 14,700 705,600
-----------
16,406,805
-----------
Capital Goods -- 6.95%
The Boeing Company............................ 96,436 3,278,824
Cable Design Technologies Corporation (b)..... 95,940 1,055,340
Cordant Technologies Inc...................... 17,100 680,802
Crown Cork & Seal Company, Inc................ 19,800 565,547
General Electric Company...................... 80,000 8,850,000
Lockheed Martin Corporation................... 120,600 4,552,650
Owens-Illinois, Inc. (b)...................... 309,800 7,745,000
Raychem Corporation........................... 23,300 525,718
Sundstrand Corporation........................ 191,595 13,315,852
Tenneco Inc................................... 166,600 4,654,471
United Technologies Corporation............... 67,800 9,182,696
-----------
54,406,900
-----------
Communication Services -- 2.62%
Bell Atlantic Corporation..................... 222,000 11,474,736
BellSouth Corporation......................... 143,700 5,757,053
Loral Space & Communications Ltd. (b)......... 225,775 3,259,739
-----------
20,491,528
-----------
Consumer Cyclical -- 5.84%
Beazer Homes USA, Inc. (b).................... 33,000 693,000
The Black & Decker Corporation................ 184,200 10,211,680
TRW Inc....................................... 190,670 8,675,485
Tribune Company............................... 400,100 26,181,743
-----------
45,761,908
-----------
Consumer Staples -- 7.68%
Chancellor Media Corporation (b).............. 202,100 9,523,962
Cumulus Media Inc., Class A (b)............... 70,000 822,500
The Walt Disney Company....................... 128,900 4,012,012
Fox Entertainment Group, Inc. (b)............. 87,800 2,381,575
Interstate Bakeries Corporation............... 31,900 687,860
Loews Cineplex Entertainment Corporation (b).. 75,000 745,350
MediaOne Group, Inc. (b)...................... 353,000 22,393,437
Nabisco Holdings Corp......................... 199,920 8,309,275
Pepsico, Inc.................................. 35,100 1,375,499
Ralston Purina Company........................ 370,500 9,887,904
-----------
60,139,374
-----------
</TABLE>
See accompanying Notes to Statement of Investments
4 Baker, Fentress & Company 1st Quarter Report 1999
<PAGE>
Statement of Investments
<TABLE>
<CAPTION>
March 31, 1999 - Unaudited Shares Value
-------- -----------
<S> <C> <C>
INVESTMENTS IN UNAFFILIATED ISSUERS (Continued)
Energy -- 3.60%
Conoco Inc. (b) .......................................... 200,200 $ 4,917,513
Schlumberger N.V. ........................................ 38,700 2,329,276
Sempra Energy ............................................ 551,343 10,579,169
Unocal Corporation ....................................... 280,000 10,325,000
-----------
28,150,958
-----------
Financials -- 10.40%
Ace Ltd. ................................................. 216,800 6,761,558
Aetna Life Insurance and Annuity Company ................. 68,600 5,693,800
BankAmerica Corporation .................................. 60,987 4,307,207
The Bank of New York Company, Inc. ....................... 268,600 9,652,947
W.R. Berkley Corporation ................................. 65,500 1,604,750
Crescent Real Estate Equities Company .................... 35,000 752,500
CRIIMI MAE Inc. .......................................... 278,700 749,146
Fairfax Financial Holdings Ltd. (Stock Purchase Rights) .. 78,000 19,500
Financial Federal Corporation ............................ 24,000 456,000
First Investors Financial Services Group, Inc. (b) ....... 292,600 1,755,600
Indymac Mortgage Holdings, Inc. .......................... 147,250 1,601,344
Mellon Bank Corporation .................................. 5,300 372,988
NAC Re Corp .............................................. 10,475 562,382
Northern Trust Corporation ............................... 41,800 3,712,383
PartnerRe Ltd. ........................................... 131,200 5,313,600
Prison Realty Corporation ................................ 52,100 908,520
Pxre Corporation ......................................... 51,000 918,000
Risk Capital Holdings, Inc. (b) .......................... 14,200 214,775
Scottish Annuity & Life Holdings, Ltd. (b) ............... 146,550 1,428,863
Security Capital U.S. Realty (b) ......................... 983,528 7,720,692
Superior National Insurance Group, Inc. (b) .............. 46,800 889,200
Terra Nova Holdings Ltd., Class A ........................ 51,700 1,130,938
Tokio Marine & Fire Insurance Company, Limited (ADR) ..... 125,000 7,015,625
UICI (b) ................................................. 96,500 2,171,250
Vail Banks, Inc. (b) ..................................... 26,000 312,000
Vesta Insurance Group, Inc. .............................. 7,500 38,438
XL Capital Ltd., Class A ................................. 252,991 15,369,200
-----------
81,433,206
-----------
Health Care -- 2.05%
Johnson & Johnson ........................................ 90,800 8,489,800
Paracelsus Healthcare Corporation (b)(c) ................. 535,443 588,987
Pfizer Inc. .............................................. 50,000 6,937,500
-----------
16,016,287
-----------
</TABLE>
See accompanying Notes to Statement of Investments
Baker, Fentress & Company 1st Quarter Report 1999 5
<PAGE>
Statement of Investments
<TABLE>
<CAPTION>
March 31, 1999 - Unaudited Shares, Contracts, or
Principal Amount Value
--------------------- ------------
INVESTMENTS IN UNAFFILIATED ISSUERS (continued)
Technology -- 7.78%
<S> <C> <C>
Adobe Systems Incorporated........................................ 8,700 $ 493,725
First Data Corporation............................................ 217,700 9,306,675
Harris Corporation................................................ 15,900 455,137
International Business Machines Corporation....................... 74,900 13,276,025
Koninklijke Philips Electronics N.V............................... 152,000 12,530,576
Schawk, Inc....................................................... 72,100 702,975
Seagate Technology, Inc. (b)...................................... 214,500 6,341,264
Texas Instruments Incorporated.................................... 179,300 17,795,525
------------
60,901,902
------------
Utilities -- 5.98%
Duke Energy Corporation........................................... 152,440 8,355,618
KeySpan Energy Corporation........................................ 563,620 14,160,953
Potomac Electric Power Company.................................... 607,800 14,093,666
The Williams Companies, Inc....................................... 258,400 10,206,800
------------
46,817,037
------------
Total common stock (Cost $349,129,660)......................... 430,525,905
------------
Preferred Stock -- 3.27%
Crown Cork & Seal Company, Inc., 4.50%............................ 188,300 5,131,175
Loral Space & Communications Ltd. (b)............................. 63,100 2,997,250
The News Corporation Limited...................................... 439,700 12,091,750
Owens-Illinois, Inc., 4.75%....................................... 148,500 5,411,043
------------
Total preferred stock (Cost $25,777,920)....................... 25,631,218
------------
Convertible Bonds -- 1.82%
Hewlett-Packard Company, Zero Coupon Bond
due 10/14/2017 (e).............................................. $22,785,000 12,588,713
Hewlett-Packard Company, Zero Coupon Bond
due 10/14/2017.................................................. $ 3,000,000 1,657,500
------------
Total convertible bonds (Cost $14,402,980)..................... 14,246,213
------------
Purchased Put Options -- 0.03%
Expiration Date/
Strike Price
----------------
S&P 500 Index..................................................... Apr 99/1175 1,250 156,250
S&P 500 Index..................................................... May 99/1175 65 69,875
------------
Total purchased put options (Cost $3,681,697).................. 226,125
------------
Limited Partnerships -- 0.97%
Golder, Thoma, Cressey Fund II Limited Partnership (c)(d)......... 512,831
Penta Japan Domestic Partners, L.P................................ 7,010,343
Phillips-Smith Specialty Retail Group Limited Partnership (c)(d).. 27,732
------------
Total limited partnerships (Cost $5,202,088)................... 7,550,906
------------
Total investments in unaffiliated issures (Cost $398,194,345).... 478,180,367
------------
</TABLE>
See accompanying Notes to Statement of Investments
6 Baker, Fentress & Company 1st Quarter Report 1999
<PAGE>
Statement of Investments
<TABLE>
<CAPTION>
March 31, 1999 - Unaudited Shares or
Principal Amount Value
---------------- ------------
INVESTMENTS IN CONTROLLED AFFILIATES -- 24.82%
<S> <C> <C>
Wholly-Owned Subsidiary -- 14.69%
Levin Management Co., Inc - investment management
Common Stock (b)(c)(d).................................................... 1,000 $ 50,000,000
10.25% Notes due 06/28/1999 (c)(d)........................................ $65,000,000 65,000,000
------------
Total wholly-owned subsidiary (Cost $120,645,890)......................... 115,000,000
------------
Publicly Traded -- 8.78%
Consolidated-Tomoka Land Co., Common Stock (majority-owned) -
development of Florida real estate (Cost $5,030,627)....................... 5,000,000 68,750,000
------------
Other -- 1.35%
DuroLite International, Inc. - manufacturer and distributor of
specialized lighting products
Convertible Preferred Stock (b)(c)(d)...................................... 2,500 1,667,250
12% Subordinated Note due 11/03/2004 (c)(d)................................ $ 8,000,000 7,872,750
DuroLite Europe Holdings, Inc. - subsidiary of DuroLite International, Inc.
23% Promissory Note due 08/20/1999 (c)(d).................................. $ 498,895 498,895
Stock Purchase Warrant expiring 08/20/2008 (b)(c)(d)....................... 1,105 --
E-Sales, Inc. - diversified environmental services marketing organization
Convertible Preferred Stock (b)(c)(d)...................................... 500,000 500,000
------------
Total other (Cost $11,500,000)............................................ 10,538,895
------------
Total investments in controlled affiliates (Cost $137,176,517)............... 194,288,895
------------
INVESTMENTS IN NON-CONTROLLED AFFILIATES -- 7.81%
Publicly Traded
Citadel Communications Corporation - radio broadcasting
Common Stock (b)(c)....................................................... 1,839,511 61,163,727
------------
Total investments in non-controlled affiliates (Cost $1,528,790)............. 61,163,727
------------
MONEY MARKET SECURITIES -- 3.19%
U.S. Treasury bills - 4.304% due 04/08/1999.................................. $25,000,000 24,977,500
------------
Total investments in money market securities (Cost $24,976,667).............. 24,977,500
------------
Total Investments -- 96.90% (Cost $561,876,319)...................................... 758,610,489
------------
Cash and Other Assets, Less Liabilities -- 3.10%..................................... 24,258,617
------------
NET ASSETS -- 100.00%................................................................ $782,869,106
============
</TABLE>
See accompanying Notes to Statement of Investments
Baker, Fentress & Company 1st Quarter Report 1999 7
<PAGE>
Notes to Statement of Investments
-------------
(a) Based on the cost of investments of $510,971,637 for federal income
tax purposes at March 31, 1999, net unrealized appreciation was
$247,638,852, which consisted of gross unrealized appreciation of
$278,328,347 and gross unrealized depreciation of $30,689,495.
(b) Non-income producing security.
(c) Securities subject to legal or contractual restrictions on sale are
valued at cost on the dates of acquisition and at a fair value
determined in good faith by the board of directors of the Company as
of March 31, 1999, based upon all factors deemed relevant by the
board. The quantitative and qualitative factors considered by the
board of directors may include, but are not limited to, type of
securities, nature of business, marketability, restrictions on
disposition, market price of unrestricted securities of the same issue
(if any), comparative valuation of securities of publicly traded
companies in the same or similar industries, valuation of recent
mergers and acquisitions of similar companies, current financial
condition and operating results, sales and earnings growth, operating
revenues, competitive conditions, and current and prospective
conditions in the overall stock market.
The values determined by the board of directors may not reflect
amounts that could be realized upon immediate sale, nor amounts that
ultimately may be realized. Accordingly, the fair values included in
the statement of investments may differ from the values that would
have been used had a ready market existed for these securities, and
such differences could be significant. The aggregate value of
restricted securities was $187,832,172, or 23.99% of net assets, at
March 31, 1999.
(d) There were no unrestricted securities of the same issue outstanding on
March 31, 1999 or the dates of acquisition.
(e) Security exempt from registration requirements under Rule 144A of the
Securities Act of 1933 which permits resales of eligible securities
issued in private placements and other transactions to "Qualified
Institutional Investors".
Annual Meeting of Shareholders
The Annual Meeting of Shareholders was held on April 22, 1999. The results of
all matters voted on by shareholders were as follows:
A proposal to approve and ratify the selection of Ernst & Young LLP as the
Company's independent auditors for 1999 was approved with 35,171,533 votes for,
359,608 votes against, and 129,110 votes abstaining.
In addition, shareholders re-elected five directors, as follows:
<TABLE>
<CAPTION>
Nominee For Withheld
----------------- ---------- --------
<S> <C> <C>
Eugene V. Fife 34,981,244 679,007
J. Barton Goodwin 34,979,066 681,185
James P. Gorter 34,977,172 683,079
John A. Levin 34,882,415 777,836
Burton G. Malkiel 34,975,457 684,794
</TABLE>
The term of office of the following directors continued after the meeting:
Frederick S. Addy, Bob D. Allen, David D. Grumhaus, Jeffrey A. Kigner, David D.
Peterson, William H. Springer, and Dean J. Takahashi.
8 Baker, Fentress & Company 1st Quarter Report 1999
<PAGE>
Portfolio Changes Exceeding $2.5 Million
Quarter Ended March 31, 1999 - Unaudited
Purchases Cost
- --------- -----------
First Union Corporation................... $ 7,957,311
XL Capital Ltd., Class A.................. 7,719,714
Johnson & Johnson......................... 7,249,499
Seagate Technology, Inc................... 6,287,472
BellSouth Corporation..................... 6,143,092
Unocal Corporation........................ 5,737,189
Crown Cork & Seal Company, Inc............ 5,473,911
Tenneco Inc............................... 5,066,989
The Walt Disney Company................... 4,244,300
Ralston Purina Company.................... 4,050,097
Potomac Electric Power Company............ 3,709,123
S&P 500 Index Put Option Apr 99/1175...... 3,531,877
The News Corporation Limited.............. 3,383,439
Nabisco Holdings Corp..................... 3,247,265
Chancellor Media Corporation.............. 2,988,183
Amerada Hess Corporation.................. 2,667,736
-----------
$79,457,197
===========
Sales Proceeds
- ----- -----------
Citadel Communications Corporation.... $10,302,012
Eli Lilly and Company................. 8,859,156
First Union Corporation............... 8,047,051
Genentech, Inc........................ 7,993,658
Sealed Air Corporation, $2.00 Series A 7,645,612
Chancellor Media Corporation.......... 7,359,580
Amerada Hess Corporation.............. 5,766,427
Texas Instruments Incorporated........ 4,495,806
United Technologies Corporation....... 4,266,878
The Williams Companies, Inc........... 3,681,912
J.C. Penney Company, Inc.............. 3,639,448
-----------
$72,057,540
===========
Baker Fentress at a Glance
Baker, Fentress & Company (BKF), founded in 1891, is a domestic equity
closed-end fund that invests for total return with an emphasis on capital
appreciation. The Company's principal investments include:
. Publicly traded companies with a focus on long-term
appreciation and capital preservation
. Levin Management Co., Inc., a wholly-owned
subsidiary, and its subsidiaries, including
John A. Levin & Co., Inc. (Levco)
. A majority interest in Consolidated-Tomoka Land Co.
Levco manages the Company's portfolio of publicly traded securities. The
balance of the portfolio is internally managed by the Company's officers under
the supervision of its board of directors.
The Company has a policy of distributing annually to shareholders amounts
equal to at least 8% of the Company's average net assets.
Selected Data
As of March 31, 1999
Total net assets................. $782,869,106
Net investment income (YTD)...... $ 4,582,123
Net realized capital gain (YTD).. $ 21,275,531
Unrealized appreciation.......... $196,734,170
Shares outstanding............... 39,029,101
Per Share
Net asset value.............. $ 20.06
Market price................. $ 15.0625
Baker, Fentress & Company 1st Quarter Report 1999 9
<PAGE>
Directors and Officers
BOARD OF DIRECTORS
Frederick S. Addy Jeffrey A. Kigner
Bob D. Allen John A. Levin
Eugene V. Fife Burton G. Malkiel
J. Barton Goodwin David D. Peterson
James P. Gorter William H. Springer
David D. Grumhaus Dean J. Takahashi
OFFICERS
James P. Gorter Chairman of the Board
John A. Levin President and Chief Executive Officer
James P. Koeneman Executive Vice President and Secretary
Scott E. Smith Executive Vice President
Julie A. Heironimus Treasurer and Assistant Secretary
Beverly J. Friedberg Assistant Treasurer
10 Baker, Fentress & Company 1st Quarter Report 1999
<PAGE>
Baker, Fentress & Company 1st Quarter Report 1999 11
