<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to____________
Commission file number 0-24412
MACC Private Equities Inc.
(Exact name of registrant as specified in its charter)
Delaware 42-1421406
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
101 Second Street SE, Suite 800, Cedar Rapids, Iowa 52401
(Address of principal executive offices)
(Zip Code)
(319) 363-8249
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since
last report)
Please indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
At March 31, 1998, the registrant had issued and outstanding 1,246,392
shares of common stock.
Page 1 of 17
Exhibit Index appears at page 14
<PAGE> 2
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page
Condensed Consolidated Balance
Sheets (Unaudited) at March 31,
1998, and September 30, 1997.................................. 3
Condensed Consolidated Statements of
Operations (Unaudited) for the three
months ended March 31, 1998, and
March 31, 1997, and the six months
ended March 31, 1998 and March 31, 1997....................... 4
Condensed Consolidated Statements
of Cash Flows (Unaudited) for the six
months ended March 31, 1998, and
the six months ended March 31, 1997........................... 5
Notes to Condensed Consolidated
Financial Statements.......................................... 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results Of Operations.............. 7
PART II. OTHER INFORMATION............................................. 11
Item 2. Changes in Securities......................................... 11
Item 4. Submission of Matters to a
Vote of Security Holders...................................... 11
Item 6. Exhibits and Reports on Form 8-K.............................. 12
Signatures..................................................... 13
EXHIBIT INDEX.......................................................... 14
2
<PAGE> 3
PART 1 -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MACC PRIVATE EQUITIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
------------ ------------
<S> <C> <C>
Assets
Loans and investments in portfolio securities at market
or fair value, cost of $23,085,659 $ 22,591,436 18,424,612
U.S. treasury bills, at cost, which approximates market 1,500,533 2,928,924
Certificates of deposit 1,977,801 1,756,801
Cash 1,213,848 756,754
Other assets, net 798,469 1,035,331
Deferred income taxes 501,000 1,093,000
------------ ------------
Total assets $ 28,583,087 25,995,422
============ ============
Liabilities and stockholders' equity
Liabilities:
Debentures payable, net of discount $ 11,248,922 10,244,478
Accrued interest 281,126 259,662
Accounts payable and other liabilities 114,611 111,440
------------ ------------
Total liabilities 11,644,659 10,615,580
------------ ------------
Stockholders' equity:
Common stock, $.01 par value per share;
4,000,000 shares authorized;
1,246,392 shares issued and 12,464 10,396
outstanding, 1,039,615 in 1997
(See Note 2)
Additional paid-in-capital 15,312,381 15,312,381
Net investment loss (213,058) (239,290)
Net realized gain on investments 2,275,863 2,551,781
Unrealized depreciation on investments (449,222) (2,255,426)
------------ ------------
Total stockholders' equity $ 16,938,428 15,379,842
------------ ------------
Total liabilities and stockholders' equity $ 28,583,087 25,995,422
============ ============
Net assets per share (See Note 2) $ 13.59 $ 12.34
============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE> 4
MACC PRIVATE EQUITIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
For the three For the six For the three For the six
months ended months ended months ended months ended
March 31, March 31, March 31, March 31,
1998 1998 1997 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment income:
Interest $ 461,491 890,537 435,551 853,822
Dividends 28,875 106,918 13,741 24,941
Other 62,935 115,096 10,702 49,189
----------- ----------- ----------- -----------
Total income 553,301 1,112,551 459,994 927,952
----------- ----------- ----------- -----------
Operating expenses:
Interest 240,537 464,428 223,899 449,280
Management fees 165,622 328,587 171,146 342,292
Professional fees 51,075 99,617 71,206 134,206
Other 120,720 176,588 99,434 170,592
----------- ----------- ----------- -----------
Total operating expenses 577,954 1,069,220 565,685 1,096,370
----------- ----------- ----------- -----------
Investment (expense) income,
net before income tax
(expense) benefit (24,653) 43,331 (105,691) (168,418)
Income tax benefit (expense) 9,900 (17,100) 79,000 79,000
----------- ----------- ----------- -----------
Investment (expense) income, net (14,753) 26,231 (26,691) (89,418)
----------- ----------- ----------- -----------
Realized and unrealized gain on investments:
Net realized (loss) gain on investments (19,999) 310,505 658,619 661,053
Net change in unrealized appreciation/
depreciation on investments 2,119,283 1,761,204 (383,053) (398,716)
----------- ----------- ----------- -----------
Net gain on investments
before income tax expense 2,099,284 2,071,709 275,566 262,337
Income tax expense (585,900) (574,900) (117,000) (117,000)
----------- ----------- ----------- -----------
Net gain on investments 1,513,384 1,496,809 158,566 145,337
----------- ----------- ----------- -----------
Net change in net assets
from operations $ 1,498,631 1,523,040 131,875 55,919
=========== =========== =========== ===========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE> 5
MACC PRIVATE EQUITIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
For the six For the six
months ended months ended
March 31, March 31,
1998 1997
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Increase in net assets from operations $ 1,523,040 55,919
----------- -----------
Adjustments to reconcile increase in
net assets from operations to net cash
provided by (used in) operating activities:
Change in provision for doubtful accounts (4,202) (4,644)
Net realized and unrealized loss on investments (2,071,709) (262,337)
Deferred income taxes 592,000 38,000
Other 12,706 11,183
Change in assets and liabilities:
Other assets 277,802 48,147
Accrued interest, accounts payable,
and other liabilities 4,636 (123,671)
----------- -----------
Total adjustments (1,188,767) (293,322)
----------- -----------
Net cash provided by (used in) operating activities 334,273 (237,403)
----------- -----------
Cash flows from investing activities:
Proceeds from disposition of and payments on
loans and investments in portfolio securities 1,134,832 1,404,997
Purchases of loans and investments in
portfolio securities (3,209,948) (3,761,062)
Proceeds from disposition of other investments 3,638,173 12,841,180
Purchases of other investments (2,982,940) (8,330,424)
----------- -----------
Net cash (used in) provided by investing activities (1,419,883) 2,154,691
----------- -----------
Cash flows from financing activities -
Dividend payment (9,454) (16,241)
Proceeds from issuance of long term debentures 1,000,000 0
----------- -----------
Net cash provided by (used in) financing activities 990,546 (16,241)
----------- -----------
Net (decrease) increase in cash and cash equivalents (95,064) 1,901,047
Cash and cash equivalents at beginning of period 2,902,406 5,066,011
----------- -----------
Cash and cash equivalents at end of period $ 2,807,342 6,967,058
=========== ===========
Supplemental disclosures of cash flow information -
Cash paid during the period for interest $ 438,520 438,520
=========== ===========
Assets received in lieu of cash $ 0 214,400
=========== ===========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE> 6
MACC PRIVATE EQUITIES INC.
Notes to Condensed Consolidated Financial Statements
March 31, 1998, September 30, 1997, and March 31, 1997
(1) Basis of Presentation
The accompanying condensed consolidated financial statements, which
include the accounts of MACC Private Equities Inc. and its wholly-owned
subsidiary MorAmerica Capital Corporation (the "Corporation") have been prepared
in accordance with generally accepted accounting principles for investment
companies. All significant intercompany accounts and transactions have been
eliminated in consolidation.
The financial statements included herein have been prepared in
accordance with generally accepted accounting principles for interim financial
information and instructions to Form 10-Q and Article 6 of Regulation S-X. The
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto of MACC Private Equities Inc. and its
Subsidiary as of and for the year ended September 30, 1997. The information
reflects all adjustments consisting of normal recurring adjustments which are,
in the opinion of management, necessary for a fair presentation of the results
of operations for the interim periods. The results of the interim period
reported are not necessarily indicative of results to be expected for the year.
(2) Common Stock
During the quarter ended March 31, 1998, the Corporation declared a 20%
stock dividend effected in the form of a stock split resulting in the issuance
of 206,777 shares of Common stock to its shareholders. Cash of $9,454.50 was
paid for fractional shares. The September 30, 1997 net assets per share is
computed as if the stock dividend occurred at that date.
[Remainder of page intentionally left blank]
6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This section contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 (the "1995
Act"). Such statements are made in good faith by the Corporation pursuant to the
safe-harbor provisions of the 1995 Act. In connection with these safe-harbor
provisions, the Corporation has identified in its Annual Report to Shareholders
for the fiscal year ended September 30, 1997, important factors which could
cause actual results to differ materially from those contained in any
forward-looking statement made by or on behalf of the Corporation. The
Corporation further cautions that such factors are not exhaustive or exclusive.
The Corporation does not undertake to update any forward-looking statement which
may be made from time to time by or on behalf of the Corporation.
RESULTS OF OPERATIONS
Second Quarter and Six Months Ended March 31, 1998, Compared to Second
Quarter and Six Months Ended March 31, 1997
Total investment income includes the Corporation's income from
interest, dividends and fees. Net investment income/expense represents total
investment income minus operating and interest expenses, net of applicable
income taxes. The main objective of portfolio company investments is to achieve
capital appreciation, realized gains, and unrealized appreciation in the
portfolio. These are not included in net investment income. However, another one
of the Corporation's long-term goals is to achieve net investment income and
increased earnings stability in future years. In this regard, a significant
proportion of new portfolio investments are structured so as to provide a
current yield through interest or dividends. The Corporation also earns interest
on short term investments of cash funds.
During the current year second quarter total investment income of
$553,301 was approximately 20% greater than total investment income of $459,994
for the prior year second quarter. In the current year second quarter as
compared to the prior year second quarter, interest income increased $25,940,
dividend income increased $15,134, and other income increased $52,233. The
increase in investment income for the current year second quarter was largely
due to the increased investment in new portfolio companies. The Corporation
received an insurance settlement of $19,180 and a $27,847 payment from escrow in
one portfolio company previously sold. The increase in other income for the
current year second quarter was largely attributable to these two non-recurring
items. Dividends were received on two portfolio companies as these newer
investments began to declare dividends. The increase in interest income is
attributable primarily to the significant percentage of new and follow-on
portfolio investments made by the Corporation that were structured as
subordinated debentures.
7
<PAGE> 8
During the current year six-month period, total income of $1,112,551 increased
20% over total income of $927,952 in the prior year six-month period. For the
current year six-month period as compared to the prior year six-month period,
interest income increased from $853,822 to $890,537, dividend income increased
from $24,941 to $106,918 and other income increased from $49,189 to $115,096. As
indicated above, the increase in investment income is primarily due to the
increased investment in new portfolio companies.
Total operating expenses for the second quarter and six-month period of
the current year total $577,954 and $1,069,220, respectively, an increase and a
decrease of approximately 2%, respectively, as compared to total operating
expenses for the prior year second quarter of $565,685 and six-month period of
$1,096,370. Interest increased by $16,638 due to the additional $1,000,000 in
new SBA Guaranteed Debentures borrowed in December 1997. Professional fees
decreased by $20,131, and other expenses, which includes administrative expenses
associated with being a public corporation, increased by $21,286.
During the current year second quarter and six-month period, the
Corporation recorded net realized gain on investments before income taxes of
($19,999) and $310,505, respectively, as compared with net realized gain on
investments before income taxes during the prior year second quarter and
six-month period of $658,619 and $661,053, respectively. Management does not
attempt to maintain a comparable level of realized gains from year to year or
quarter to quarter but instead attempts to maximize total investment portfolio
appreciation through realizing gains in the disposition of securities and
investing in new portfolio investments. The Corporation anticipates that further
gains will be achieved in 1998 and that the Corporation will exceed its
forecasted year end net asset value.
The Corporation recorded net change in unrealized
appreciation/depreciation on investments of $2,119,283 and $1,761,204,
respectively, during the current year second quarter and six-month period, as
compared to ($383,053) and ($398,716) during the prior year second quarter and
six-month period. Net change in unrealized appreciation/depreciation on
investments represents the change for the period in the unrealized appreciation
on the Corporation's total investment portfolio net of unrealized depreciation
on the Corporation's total portfolio investment. Generally, when the Corporation
increases the fair value of a portfolio investment above its cost, the
unrealized appreciation item for the portfolio as a whole increases, and when
the Corporation decreases the fair value of a portfolio investment below its
cost, the unrealized depreciation item for the portfolio as a whole increases.
When the Corporation sells an appreciated portfolio investment for a gain,
unrealized appreciation for the portfolio as a whole decreases as the gain is
realized. Similarly, when the Corporation sells a depreciated portfolio
investment for a loss, unrealized depreciation for the portfolio as a whole
decreases as the loss is realized. The net change in unrealized
appreciation/depreciation on investments of $2,119,283 recorded during the
current year second quarter is the result of valuation adjustments taken at the
semi-annual valuation review of the portfolio. Approximately $882,166 of this
adjustment reflects the appropriate realized value recorded by the Corporation
on an exchange subsequent to March 31, 1998 of equity in one company for a
publicly traded stock. This amount will be a realized gain in the third quarter.
8
<PAGE> 9
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
To date, the Corporation has relied upon several sources to fund its
investment activities, including the Corporation's U.S. treasury bills, cash
equivalents and cash, and the Small Business Investment Company ("SBIC") capital
program operated by the Small Business Administration (the "SBA").
The Corporation, through its wholly-owned subsidiary, MorAmerica
Capital, from time to time may seek to procure additional capital through the
SBIC capital program to provide a portion of its future investment capital
requirements. At present, there is availability of capital for the next three
years in commitment periods of up to five years through the SBIC capital program
and the Corporation anticipates that there will be capital available in future
periods. The Corporation also believes that recently enacted federal legislation
which permits SBICs to obtain debt financing from federal home loan banks may
provide an additional future source of debt financing for the Corporation.
As of March 31, 1998, the Corporation's U.S. treasury bills,
certificates of deposit and cash totaled $4,692,182. The Corporation borrowed
$1,000,000 in new SBA Guaranteed Debentures in December 1997 and obtained a
commitment for an additional $1,000,000 in March 1998. The Corporation believes
that its existing U.S. treasury bills, certificates of deposit and cash,
together with the proceeds from the additional $1,000,000 in SBA guaranteed
debentures and other anticipated cash flows, will provide adequate funds for the
Corporation's anticipated cash requirements during the current fiscal year,
including portfolio investment activities and administrative expenses. The
Corporation has planned $7,000,000 in new and follow-on investment activities
during the current fiscal year, of which $3,209,948 was invested during the
first six months of the current fiscal year.
Liquidity for the next two years will not be impacted by principal
payments on the Corporation's debentures payable because there are no scheduled
principal payments until 2000. Debentures payable are composed of $11,290,000 in
principal amount of SBA-guaranteed debentures issued by the Corporation's
subsidiary, MorAmerica Capital, which mature as follows: $2,450,000 in 2000,
$5,690,000 in 2001, $2,150,000 in 2003 and $1,000,000 in 2007. It is anticipated
MorAmerica Capital would be able to roll over this debt with new ten year
debentures when it matures. MorAmerica Capital is applying for a 5 year
commitment of leverage from SBA which will include commitments to refinance
these debentures for another 10 year term.
The Corporation anticipates that it may seek additional capital, either
in the form of additional SBA-guaranteed debentures issued by MorAmerica Capital
or in the form of common stock of the Corporation, to fund growth of the
Corporation, to meet principal payments, if necessary, as the outstanding
SBA-guaranteed debentures become due and payable and for other corporate
purposes.
9
<PAGE> 10
PORTFOLIO ACTIVITY
During the six months ended March 31, 1998, the Corporation invested
$3,209,948 in eight portfolio companies, consisting of $2,718,172 invested in
three new portfolio companies and $491,776 invested in follow-on investments in
five existing portfolio companies. The Corporation's investment level objectives
for fiscal year 1998 call for total new and follow-on investments of $7,000,000.
Based upon the total amount of new and follow-on investments made during the six
months ended March 31, 1998, the Corporation anticipates that it will achieve
its investment level objectives for the current fiscal year. However, management
views investment level objectives for any given year as secondary in importance
to the Corporation's overriding concern of investing in only those portfolio
companies which satisfy the Corporation's investment criteria.
DETERMINATION OF NET ASSET VALUE
The net asset value per share of the Corporation's outstanding common
stock is determined quarterly, as soon as practicable after and as of the end of
each calendar quarter, by dividing the value of total assets minus total
liabilities by the total number of shares outstanding at the date as of which
the determination is made.
In calculating the value of total assets, securities that are traded in
the over-the-counter market or on a stock exchange are valued in accordance with
the current valuation policies of the Small Business Administration ("SBA").
Under SBA regulations, publicly traded equity securities are valued by taking
the average of the closing prices (or bid prices in the case of over-the-counter
equity securities) for the valuation date and the preceding two days. This
policy differs from the Securities and Exchange Commission's guidelines which
utilize only a one day price measurement. The Corporation's use of SBA valuation
procedures did not result in a material variance as of March 31, 1998, from
valuations using the Securities and Exchange Commission's guidelines.
All other investments are valued at fair value as determined in good
faith by the Board of Directors. The Board of Directors has determined that all
other investments will be valued initially at cost, but such valuation will be
subject to semi-annual adjustments if the Board of Directors determines in good
faith that cost no longer represents fair value.
10
<PAGE> 11
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
There are no items to report.
ITEM 2. CHANGES IN SECURITIES
At its Annual Meeting on February 24, 1998, the Board of Directors
declared a stock dividend of 20% payable to shareholders of record as of March
13, 1998 and payable on March 31, 1998. On March 31, 1998 total outstanding
shares increased from 1,039,615 to 1,246,392.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
There are no items to report.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS
On February 24, 1998, the Company's 1998 Annual Meeting of Shareholders
(the "Meeting") was held in Cedar Rapids, Iowa. A quorum of 681,357 shares, or
approximately 65.549% of issued and outstanding shares as of December 31, 1997,
were represented in person or by proxy at the Meeting. The shareholders
considered four proposals at the Meeting.
With respect to the first proposal, by a vote of 656,742 shares in
favor of and 24,615 shares against, the shareholders elected two directors to
serve until 2001 Annual Meeting of Shareholders or until their respective
successors shall be elected and qualified. These directors and the votes cast in
favor of and withheld with respect to each are as follows:
Director For Withheld
Michael W. Dunn 656,283 25,074
James L. Miller 653,853 27,504
With regard to the second proposal, the shareholders voted to ratify
the appointment of KPMG Peat Marwick LLP as independent auditors for the Company
for Fiscal Year 1998 by a vote of 652,415 in favor of ratification and 16,024
against ratification, with 12,918 shares abstaining.
11
<PAGE> 12
The third proposal, to approve for a one-year period the policy and
practice of the Corporation of issuing up to 300,000 shares of Common stock of
the Corporation at not less than 90% of net asset value per share, was approved
by the shareholders. With respect to this third proposal, the shareholders voted
545,553 in favor of the proposal and 42,322 against the proposal, with 47,559
shares abstaining.
The fourth proposal, to approve certain proposed amendments to the
Investment Advisory Agreements of the Corporation and MorAmerica Capital, was
approved by the stockholders. With respect to this fourth proposal, the
shareholders voted 583,193 in favor of the proposal and 34,786 against the
proposal, with 57,096 shares abstaining.
ITEM 5. OTHER INFORMATION
There are no items to report.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
(27) Financial Data Schedule
No other exhibits are applicable.
(b) Reports on Form 8-K
The Company filed no reports on Form 8-K during the three months ended
March 31, 1998.
12
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MACC PRIVATE EQUITIES INC.
Date: 5/12/98 By:/s/ David Schroder
------------------------------------
David Schroder, President
Date: 5/12/98 By:/s/ Robert A. Comey
------------------------------------
Robert A. Comey, Treasurer
13
<PAGE> 14
EXHIBIT INDEX
Exhibit Description Page
(27) Financial Data Schedule 15
14
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 24,586,192
<INVESTMENTS-AT-VALUE> 24,091,969
<RECEIVABLES> 0
<ASSETS-OTHER> 798,469
<OTHER-ITEMS-ASSETS> 3,692,649
<TOTAL-ASSETS> 28,583,087
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 11,248,922
<OTHER-ITEMS-LIABILITIES> 395,737
<TOTAL-LIABILITIES> 11,644,659
<SENIOR-EQUITY> 12,464
<PAID-IN-CAPITAL-COMMON> 15,312,381
<SHARES-COMMON-STOCK> 1,246,392
<SHARES-COMMON-PRIOR> 1,039,615
<ACCUMULATED-NII-CURRENT> (213,058)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,275,863
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (449,222)
<NET-ASSETS> 16,938,428
<DIVIDEND-INCOME> 106,918
<INTEREST-INCOME> 890,537
<OTHER-INCOME> 115,096
<EXPENSES-NET> 1,086,320
<NET-INVESTMENT-INCOME> 26,231
<REALIZED-GAINS-CURRENT> (264,395)
<APPREC-INCREASE-CURRENT> 1,761,204
<NET-CHANGE-FROM-OPS> 1,523,040
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 206,777
<NET-CHANGE-IN-ASSETS> 1,558,586
<ACCUMULATED-NII-PRIOR> (239,290)
<ACCUMULATED-GAINS-PRIOR> 2,551,781
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>