THE BRAMWELL GROWTH FUND
SEMI-ANNUAL REPORT - DECEMBER 1995
745 FIFTH AVENUE
NEW YORK, NEW YORK 10151
Dear Fellow Shareholders:
Investment Results - Quarter Ended December 1995
The Bramwell Growth Fund appreciated 32.6% for the calendar year 1995 to $13.55
net asset value per share after payment of a $0.036145 per share dividend on
December 28th. Since inception, August 1, 1994, the Fund's cumulative return
was 36.0% resulting in a compound average annual rate of return of 24.2% for the
period. During the quarter ended December 31, 1995, the Fund declined 0.8%.
Investment results compared to those of the S&P 500 Stock Index and the Lipper
Growth Fund Index were:
Comparative Investment March Q June Q Sept. Q Dec. Q One Since
Returns 1995 1995 1995 1995 Year Inception<F1>
------- ------ ------- ------ ------ ------------
The Bramwell Growth Fund 8.2% 10.9% 11.4% (0.8)% 32.6% 24.2%
S&P 500 Stock Index<F2> 9.8 9.4 8.0 6.0 37.5 26.0
Lipper Growth Fund Index <F3> 7.2 10.7 9.1 1.5 31.5 22.0
Bramwell Growth Fund S&P 500 Stock Index Lipper Growth Fund Index
-------------------- -------------------- ------------------------
8/1/94 10,000 10,000 10,000
9/30/94 10,220 10,086 10,243
12/31/94 10,259 10,082 10,074
3/31/95 11,100 11,067 10,802
6/30/95 12,311 12,118 11,958
9/30/95 13,713 13,083 13,044
12/31/95 13,599 13,866 13,245
This chart assumes an initial investment of $10,000 made on 8/1/94 (inception).
Returns shown include the reinvestment of all dividends and are net of expenses.
The annual expense ratio is capped at 1.75%. Past performance is not predictive
of future performance. Investment returns and principal value will fluctuate, so
that shares, when redeemed, may be worth more or less than the original cost.
<F1> Compound average annual return since inception 8/1/94. Cumulative return
since inception through December 31, 1995 for The Bramwell Growth Fund was 36.0%
compared to 38.7% for the S&P 500 Stock Index and 32.5% for the Lipper Growth
Fund Index.
<F2> The S&P 500 Stock Index is an unmanaged index of 500 selected
common stocks, most of which are listed on the New York Stock Exchange. The
Index is adjusted for dividends, weighted towards stocks with large market
capitalizations and represents approximately two-thirds of the total market
value of all domestic common stocks.
<F3> The Lipper Growth Fund Index is an index made up of the 30 largest
mutual funds in the Lipper Analytical Services,Inc. growth objective grouping.
Funds comprising the Index are equal weighted and returns include the
reinvestment of dividends and are net of expenses.The Fund ended December
with net assets of $137.9 million and close to 14,000 shareholders,
compared to $13.4 million and 2,173 shareholders at the end of December 1994.
COMMENTARY
Calendar 1995 was an exceptional year for the U.S. equity markets. Long-term
interest rates fell two percentage points and corporate profits rose more than
15%. The Dow Jones Industrial Average broke records throughout the year and
closed over 5000. In the fourth quarter, however, economic growth decelerated
to an estimated Gross Domestic Product (GDP) rate of 2% from a 3.2% rate in the
third quarter and investors took profits in technology stocks and moved to
larger capitalization companies as evidenced by the strong performance of the
S&P 500 Stock Index during the period. The Bramwell Growth Fund ended December
1995 with more than 60% of its assets invested in companies with market
capitalizations under $5 billion that we believe are generally more attractively
valued relative to their future growth prospects than are larger capitalization
stocks.
OUTLOOK
While the 1995 equity markets benefited from declining interest rates and
double-digit gains in corporate profits, we anticipate that 1996 equity markets
will continue to benefit from ongoing declines in global interest rates and, to
a lesser extent, more modest gains in corporate profits. We look for 1996
economic growth to continue at about a 2% annual rate and for S&P 500 Stock
Index profits to slow to mid-single digits compared to more than 15% growth in
1995. Consumer spending is expected to remain cautious, given slow overall job
expansion; capital spending is expected to moderate but pick up in the second
half as new communications and computer technologies come to market; exports
should benefit from improving conditions for our major trading partners:
Canada, Japan and Mexico. European economies are expected to be sluggish.
Inflation is expected to continue to slow to less than 2%, given global
outsourcing and competition, greater productivity driven by technology, a
stronger U.S. dollar and bipartisan efforts to constrain the federal deficit.
Interest rates are expected to continue to decline in view of lower inflation
than anticipated and the current wide spread between the Fed Funds rate of 5.5%
and inflation. We continue to believe that the Federal Reserve has room to
lower the Fed Funds rate by one to two percentage points just to bring it more
in line with the historical average spread to inflation. Lower interest rates
would not only lower the cost of debt, but would also encourage higher
price/earnings ratios and positively impact the stock market. The resulting
lower cost of capital, in turn, would stimulate economic expansion and job
creation. Also, lower returns on money market funds would encourage money to
flow into equities as investors endeavor to capture higher returns. Current
slower-than-expected economic growth and lower-than-expected inflation increase
the likelihood of short-term interest rates declining.
Despite smaller profit gains anticipated broad universe of companies with
innovative products and services that will grow more rapidly and are
attractively valued relative to the S&P 500 Stock Index with an estimated 7.5%
secular growth rate and a price/earnings ratio of 15 times forward 12-month
earnings. With the recent break in technology stocks, many companies with
earnings growth prospects of 15% or more, or two or more times that of the S&P
500 Stock Index, are now selling at less than 10 times estimated 1996 earnings
and at discounts to future growth compared to the S&P 500 Stock Index selling at
two times secular earnings growth. Many fast-growing companies are also selling
at favorable valuations to growth compared to large capitalization growth stocks
that are oftentimes selling at 20 or more times 1996 estimated earnings and at
one and a half times their future earnings growth rates. We believe that such
market breaks in above-average growth companies provide selected opportunities
to enhance our Fund's long-term investment returns.
Although our views are subject to change, we also like various investment themes
wherein we currently believe the outlook for individual companies may largely
transcend a slow overall economy:
- - Financial Services: Favorable demographics as aging baby boomers expand the
market for financial products: insurance (Allstate), mutual fund processing (DST
Systems) and investment management and global custody (Northern Trust).
- - Geographic Plays: The Pacific Northwest is growing faster than the rest of the
United States as technology companies, in particular, expand in the region and
as trade with the Pacific Rim continues to grow. Portfolio companies include
Red Lion (lodging) and Washington Mutual (banking). Non-Japan Asia is growing
2-3 times faster than the United States. Companies with above-average
exposure to this part of the world are Applied Materials (semiconductor
equipment), AVX (capacitors) and Molex (connectors).
- - Global Expansion: Rising personal income and an expanding middle class,
especially in emerging countries, create opportunities for global brands:
Johnson & Johnson, Procter & Gamble and even Tiffany.
- - Innovation: Companies that create their own growth and markets by introducing
new products and services are: Merck (drugs) and Thermo Electron (multiple new
technologies).
- - Intellectual Property: Companies with proprietary data and knowledge that can
leverage their know-how across various media include: Dow Jones (financial
publishing), Gaylord Entertainment (country western music) and Pixar
(computerized animation software).
- - Outsourcing: The need to improve productivity and global competitiveness
continues to drive outsourcing for manufacturing components (AVX, Illinois Tool
Works, Molex), information processing (First Data, General Motors E) and non-
permanent employees (On Assignment, Robert Half).
INVESTMENT APPROACH
The Bramwell Growth Fund seeks to achieve long-term capital growth by investing
in companies believed to be positioned to benefit from the long-term payoff on
research, product development, capital spending and market expansion. Up to 25%
of the Fund's assets may be invested in foreign securities, and although the
Fund will normally be invested in equities, the Fund may hold short-term money
market or United States Government securities if market conditions warrant.
Portfolio selection is largely based on primary research and is company-specific
within the context of a macroeconomic and political framework. In the long
term, we believe that equity investment in innovative and strategic
ally positioned companies provides greater aftertax returns, preservation of
global wealth, and participation in worldwide economic growth than either cash
or bonds.
FUND INVESTMENT
The minimum initial investment for a Regular account is $1,000 and $500 for an
IRA or Gift to Minor account. Subsequent investment minimums are $100 for
Regular and IRA accounts and $50 for a Gift to Minor account. Equity markets
are inherently volatile and investors are encouraged to invest over time. In
the long term, the rewards of ownership are anticipated to more than compensate
for the risk of day-to-day price fluctuations. An Automatic Investment Plan,
with initial and subsequent investment minimums of $50 per month, is available
upon request to facilitate regular investment. The Fund's net asset value
is available each evening after 6:00 p.m. (EST) by calling 1-800-BRAMCAP
(1-800-272-6227). Please also call this number if you need assistance
or additional information.
Sincerely,
/s/ Elizabeth R. Bramwell
Elizabeth R. Bramwell, CFA
President and Chief Investment Officer
January 25, 1996
The outlook and opinions expressed above represent the views of the investment
adviser as of January 25, 1996, and are subject to change as market and economic
events unfold.
Top Ten Equity Holdings
December 31, 1995
Eckerd 3.7% AVX 2.2%
Allstate 3.1 Johnson & Johnson 2.2
Walgreen 2.7 LSI Logic 2.0
General Motors E 2.4 Merck 1.9
Thermo Electron 2.2 Illinois Tool Works 1.8
Top Ten Industry Sectors
December 31, 1995
Industrial Products 15.7% Insurance 5.8%
Retailing 13.5 Health Care 5.5
Technology 13.2 Food & Beverage 3.8
Information Processing 9.7 Entertainment 3.6
Financial Services 7.0 Communications 3.4
PORTFOLIO OF INVESTMENTS - DECEMBER 31, 1995 (UNAUDITED)
Shares Value
------- -------
COMMON STOCKS - 97.8%
Apparel - 1.2%
Cutter & Buck, Inc. <F2> 25,000 $ 212,500
Oakley, Inc. <F3> 23,000 782,000
Sola International, Inc. <F3> 25,000 631,250
----------
1,625,750
Automotive - 2.8%
Case Corporation 45,000 2,058,750
Chrysler Corporation 20,000 1,107,500
General Motors Corporation, Class H 15,000 736,875
----------
3,903,125
Communications - 3.4%
Ericsson (L.M.) Telephone Company 25,000 487,500
Infinity Broadcasting Corporation< F3> 10,800 402,300
Microwave Power Devices, Inc. <F3> 5,000 55,625
Nokia Corp. - ADR 43,000 1,671,625
Pairgain Technologies, Inc. <F3> 12,000 657,000
StrataCom, Inc. <F3> 20,000 1,470,000
----------
4,744,050
Entertainment - 3.6%
Cinar Films, Inc., Class B <F3> 30,000 453,750
Gaylord Entertainment Company 55,750 1,547,062
Pixar, Inc. <F3> 20,500 591,938
Regal Cinemas, Inc. <F3> 82,500 2,454,375
----------
5,047,125
Financial Services - 7.0%
Charles Schwab Corporation (The) 35,000 704,375
Collective Bancorp, Inc. 40,000 1,015,000
Dow Jones & Company, Inc. 55,000 2,193,125
J.P. Morgan & Company, Inc. 10,000 802,500
Northern Trust Company 25,000 1,400,000
Norwest Corporation 65,000 2,145,000
Washington Mutual, Inc. 50,000 1,443,750
----------
9,703,750
Food-& Beverage - 3.8%
Coca-Cola Company (The) 12,000 891,000
CPC International, Inc. 35,700 2,449,912
Hershey Foods Corporation 25,000 1,625,000
Pepsi Cola Puerto Rico Bottling Company 20,000 230,000
----------
5,195,912
Health Care Products - 4.8%
Ballard Medical Products 51,500 920,563
Johnson & Johnson 35,100 3,005,437
Merck & Company, Inc. 40,000 2,630,000
Oncogene Science, Inc. <F3> 10,000 95,000
----------
6,651,000
Health Care Services - 0.7%
Healthsource, Inc. <F3> 16,400 590,400
United HealthCare Corporation 5,000 327,500
----------
917,900
Household Products & Furnishings - 2.2%
Gillette Company (The) 14,000 729,750
Procter & Gamble Company 27,000 2,241,000
----------
2,970,750
Industrial Products - 15.7%
AMP Inc. 40,400 1,550,350
AVX Corp. <F3> 115,000 3,047,500
C.P. Clare Corporation <F3> 50,000 1,025,000
Emerson Electric Company 20,900 1,708,575
General Electric Company 33,000 2,376,000
Illinois Tool Works, Inc. 43,000 2,537,000
KEMET Corporation <F3> 26,000 620,750
Kennametal, Inc. 35,400 1,123,950
Kent Electronics Corporation <F3> 15,000 875,625
Methode Electronics, Inc. - A 52,500 748,125
Minerals Technologies, Inc. 30,000 1,095,000
Molex Inc., Class A 80,687 2,471,039
Vishay Intertechnology Group, Inc. <F3> 50,500 1,590,750
Waters Corporation 14,900 271,925
X-Rite, Inc. 40,000 565,000
----------
21,606,589
Information Processing:
Office Equipment - 4.2%
Danka Business Systems PLC-ADR 41,000 1,517,000
Hewlett-Packard Company 30,000 2,512,500
Silicon Graphics, Inc. 38,000 1,045,000
Sun Microsystems, Inc. 16,000 730,000
----------
5,804,500
Information Processing:
Services - 4.4%
Ciber, Inc. 14,000 327,250
DST Systems, Inc. <F3> 33,000 940,500
First Data Corporation 22,929 1,533,377
General Motors Corp., Class E 63,000 3,276,000
-----------
6,077,127
Information Processing:
Software - 1.1%
Oracle Systems Corporation <F3> 10,000 423,750
SAP AG-ADR 20,000 1,033,800
----------
1,457,550
Insurance - 5.8%
Allstate Corporation 105,300 4,330,463
Berkley (W.R.) Corporation 4,000 215,000
Chubb Corporation 25,000 2,418,750
Horace Mann Educators Corporation 34,000 1,062,500
----------
8,026,713
Lodging - 1.4%
Micros Systems, Inc. <F3> 20,000 985,000
Red Lion Hotels, Inc. <F3> 55,600 973,000
----------
1,958,000
Metals - 0.6%
OM Group, Inc. 20,000 662,500
Universal Stainless & Alloy Products, Inc. <F3> 20,000 212,500
----------
875,000
Packaging - 1.0%
Sealed Air Corporation <F3> 15,000 421,875
Sonoco Products Company 36,750 964,688
----------
1,386,563
Restaurants - 1.9%
Lone Star Steakhouse & Saloon, Inc. <F3> 56,000 2,149,000
McDonalds Corporation 10,000 451,250
----------
2,600,250
Retailing - 13.5%
Eckerd Corporation <F3> 115,000 5,131,875
Just For Feet, Inc. <F3> 45,000 1,608,750
Kohl's Corporation <F3> 38,000 1,995,000
OfficeMax, Inc. <F3> 30,000 671,250
Staples, Inc. <F3> 50,000 1,218,750
Sunglass Hut International 35,000 831,250
Talbots, Inc. (The) 85,100 2,446,625
Tiffany & Co. 18,400 926,900
Walgreen Company 125,000 3,734,375
-----------
18,564,775
Services: Temporary Help - 2.7%
Interim Services, Inc. <F3> 35,000 1,216,250
On Assignment, Inc. <F3> 30,000 982,500
Robert Half International, Inc. <F3> 35,000 1,465,625
-----------
3,664,375
Technology:
Semiconductors/Equipment - 9.7%
Analog Devices, Inc. <F3> 50,000 1,768,750
Applied Materials, Inc. <F3> 60,000 2,362,500
Cisco Systems, Inc. <F3> 33,000 2,462,625
Fusion Systems Corporation <F3> 36,000 1,008,000
Intel Corporation 15,000 851,250
Lam Research Corporation <F3> 20,000 915,000
LSI Logic Corporation <F3> 83,000 2,718,250
Tencor Instruments <F3> 55,000 1,340,625
-----------
13,427,000
Technology: Other - 3.5%
Loral Corporation 32,000 1,132,000
Thermo Electron Corporation <F3> 58,650 3,049,800
ThermoLase Corporation* 25,000 646,875
----------
4,828,675
Transportation - 2.8%
Bombardier, Inc., Class B 90,000 1,187,820
Fritz Companies, Inc. <F3> 20,000 830,000
Kansas City Southern Industries, Inc. 40,000 1,830,000
----------
3,847,820
Total Common Stocks
(Cost $121,660,757) 134,884,299
-----------
Principal
Amount
----------
CONVERTIBLE BONDS - 1.0%
Analog Devices,
3.50%, Due 12/1/00 $ 50,000 54,000
Magna International,
5.00%, Due 10/15/02 500,000 510,000
Starbucks Corporation,
4.25%, Due 11/1/02 500,000 532,500
Thermo Electron,
4.25%, Due 1/3/03 250,000 272,812
---------
Total Convertible Bonds
(Cost $1,298,750) 1,369,312
---------
Principal
Amount Value
---------- ----------
Variable Rate Demand Notes - 2.1%
General Mills, Inc. $ 832,000 $ 832,000
Pitney Bowes, Inc. 1,390,000 1,390,000
Southwestern Bell Corporation 53,500 53,500
Wisconsin Electric Power Co. 609,000 609,000
----------
Total Variable Rate Demand Notes
(Cost $2,884,500) 2,884,500
----------
Total Investments---100.9%
(Cost $125,844,007) 139,138,111
Liabilities, less Cash and Other Assets - (0.9)% (1,252,648)
Net Assets - 100.0%
(10,174,633 shares outstanding) $137,885,463
============
Net Asset Value, Offering and
Redemption Price per Share $13.55
======
<F5> Non-income producing security.
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
ASSETS:
Investments at market value (cost $125,844,007) $139,138,111
Receivable for investments sold 622,419
Dividends and interest receivable 130,285
Organizational costs, net of accumulated amortization 124,845
Prepaid expenses 45,411
------------
Total Assets 140,061,071
------------
LIABILITIES:
Payable for securities purchased 1,989,615
Accrued investment advisory fees 115,001
Accrued expenses 70,992
------------
Total Liabilities 2,175,608
------------
NET ASSETS $137,885,463
============
NET ASSETS CONSIST OF:
Capital stock $122,826,325
Undistributed net realized gain on investments 1,765,034
Net unrealized appreciation on investments 13,294,104
------------
NET ASSETS $137,885,463
============
CAPITAL STOCK, $.0001 par value
Authorized 200,000,000
Issued and outstanding 10,174,633
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE $13.55
======
See notes to financial statements.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED)
INVESTMENT INCOME:
Dividends $ 416,359
Interest 216,296
----------
Total Investment Income 632,655
----------
EXPENSES:
Investment advisory fees 540,073
Distribution fees 135,018
Fund administration and accounting fees 71,926
Shareholder servicing fees 47,074
Federal and state registration fees 45,349
Custody fees 16,865
Amortization of organizational expenses 13,099
Reports to shareholders 12,547
Directors' fees 12,364
Legal fees 11,416
Insurance 9,248
Audit fees 6,266
Miscellaneous 2,288
Pricing 1,649
----------
Total Expenses 925,182
----------
NET INVESTMENT LOSS (292,527)
----------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment transactions 2,041,004
Change in unrealized appreciation on investments 6,069,635
----------
Net Gain on Investments 8,110,639
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $7,818,112
==========
See notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
Six Months For the Period
Ended August 1, 1994 <F5>
December 31, 1995 to
(Unaudited) June 30, 1995
---------------- ------------------
OPERATIONS:
Net investment loss $ (292,527) $ (23,655)
Net realized gain on
investments 2,041,004 90,406
Change in unrealized
appreciation on
investments 6,069,635 7,224,469
----------- -----------
Net increase in net assets
resulting from
operations 7,818,112 7,291,220
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from 7,445,434
and 5,234,360 shares issued 99,488,593 56,905,122
Net asset value of 22,178
and 1,115 shares issued
to holders in reinvest-
ment of dividends 298,517 11,842
Cost of 2,354,553 and
183,941 shares redeemed (31,594,726) (2,054,484)
------------ -----------
Net increase 68,192,384 54,862,480
------------ -----------
DIVIDENDS PAID FROM:
Net investment income - (12,357)
Net realized gains (366,376) -
------------ -----------
TOTAL INCREASE IN NET ASSETS 75,644,120 62,141,343
NET ASSETS:
Beginning of period 62,241,343 100,000
------------ -----------
End of period $137,885,463 $62,241,343
============ ===========
<F5> Commencement of Operations
See notes to financial statements.
FINANCIAL HIGHLIGHTS
Six Months For the Period
Ended August 1, 1994 <F6>
December 31, 1995 to
(Unaudited) June 30, 1995
----------------- ------------------
Net asset value, beginning of period $12.30 $10.00
Income from investment operations:
Net investment loss (0.03) - <F7>
Net realized and unrealized
gains on securities 1.32 2.31
------ ------
Total from investment operations 1.29 2.31
------ ------
Less distributions:
Dividends from net investment income - (0.01)
Distributions from capital gains (0.04) -
------ -------
Total distributions (0.04) (0.01)
------ -------
Net asset value, end of period $13.55 $12.30
====== ======
Total return <F8> 10.5% 23.1%
Supplemental data and ratios:
Net assets, end of period $137,885,463 $62,241,343
Ratio of expenses to
average net assets <F9> 1.71% 1.75%<F8>
Ratio of net loss to
average net assets <F9> (0.54)% (0.11)%<F10>
Portfolio turnover rate 53% 80%
<F6> Commencement of Operations
<F7> Less than $(0.01)
<F8> Not annualized
<F9> Annualized
<F10> Net of reimbursements and waivers. Absent reimbursements and waivers of
expenses by adviser, the ratios of expenses and net investment loss to average
net assets for the period August 1, 1994 to June 30, 1995, would have been 2.68%
and (1.04)%, respectively.
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
The Bramwell Funds, Inc. (the "Company") was incorporated on June 3, 1994 and
is registered as an open-end, management investment company organized as a
series fund under the Investment Company Act of 1940 (the "1940 Act"). The
Bramwell Growth Fund (the "Fund"), which commenced operations on August 1,
1994, is a separate diversified portfolio of the Company. The Fund issued and
sold 10,000 shares ("initial shares") of its common stock at $10 per share to
Bramwell Capital Management, Inc. ("BramCap"). BramCap is the Fund's
investment adviser.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
a) Investment Valuation - A security listed or traded on a recognized stock
exchange or quoted on Nasdaq is valued at its last sale price prior to the time
when assets are valued on the principal exchange on which the security is traded
or on Nasdaq. If no sale is reported on the valuation date, the most current
bid price will be used. All other securities for which over-the-counter market
quotations are readily available are valued at the most current bid price. Debt
securities which will mature in more than 60 days are valued at prices furnished
by a pricing service approved by the Board of Directors. Whenever a furnished
price is significantly different from the previous day's furnished price,
BramCap will review to determine that the price is appropriate. Securities
which will mature in 60 days or less are valued at amortized cost, which
approximates market value. Variable rate demand notes are valued at cost which
approximates market value. These notes are unsecured and could present credit
risk to the extent the issuer defaults on its payment obligation. The
creditworthiness of the issuer is monitored and these notes have been determined
to present minimal credit risk by BramCap. Any securities for which market
quotations are not readily available are valued at their fair value as
determined in good faith by the Board of Directors.
b) Federal Income Taxes - The Company's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies and to distribute all its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
c) Distributions to Shareholders - Dividends from net investment income are
declared and paid annually in December. Distributions of net realized capital
gains, if any, will be declared at least annually. Distributions to
shareholders are recorded on the ex-dividend date. The Fund may periodically
make reclassifications among certain of its capital accounts as a result of the
timing and characterization of certain income and capital gains distributions
determined annually in accordance with federal tax regulations which may differ
from generally accepted accounting principles. Accordingly, at June 30, 1995,
reclassifications were recorded from accumulated net investment losses to reduce
capital stock by $8,540 and undistributed net realized gain on investments by
$27,472.
d) Organizational Costs - The costs incurred in connection with the
organization, initial registration and public offering of shares of the Fund
aggregated $153,472. These costs are being amortized over the period of
benefit, reflecting anticipated future asset levels of the Fund, but not to
exceed 60 months from the Fund's commencement of operations.
e) Other - Investment transactions are accounted for on the trade date. The
Fund determines the gain or loss realized from the investment transactions by
comparing the original cost of the security lot sold with the net sale proceeds.
Dividend income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis.
3. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments for the Fund, for the six months ended December 31, 1995 were
$122,796,994 and $52,961,240, respectively. There were no purchases or sales of
U.S. Government securities. At December 31, 1995, gross unrealized appreciation
and depreciation of investments were as follows:
Appreciation $18,639,649
Depreciation (5,345,545)
-----------
Net appreciation on investments $13,294,104
===========
4. INVESTMENT ADVISORY AGREEMENT
The Fund has an agreement with BramCap, with whom certain officers and a
director of the Fund are affiliated, to furnish investment advisory services to
the Fund. Under the terms of this agreement, the Fund will pay BramCap a monthly
fee at the annual rate of 1.00% on average daily net assets. The Fund's
investment adviser has voluntarily agreed to limit the total expenses of the
Fund (excluding interest, taxes, brokerage and extraordinary expenses) to an
annual rate of 1.75% of the Fund's average net assets until June 30, 1996.
After such date, the expense limitation may be terminated or revised at any
time.
5. DISTRIBUTION PLAN
The Fund has adopted a Service and Distribution Plan (the "Plan") pursuant to
Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Fund in
connection with the distribution of its shares at an annual rate, as determined
from time to time by the Board of Directors, of up to 0.25% of the Fund's
average daily net assets.
The Bramwell Growth Fund
745 Fifth Avenue
New York, New York 10151
1-800-BRAMCAP
(1-800-272-6227)
Board of Directors
- ----------------------------
Elizabeth R. Bramwell, CFA
President, Chief Investment and Financial Officer
The Bramwell Funds, Inc.
J. Sinclair Armstrong
Counsel
Whitman Breed Abbott & Morgan
Former Commissioner and Chairman
Securities and Exchange Commission
Isabel H. Benham
President, Board of Trustees
John W. Barringer III National Railroad Library
George F. Keane
President Emeritus and Senior Investment Adviser
The Common Fund, Inc.
James C. Sargent
Counsel
Opton, Handler, Gottlieb, Feiler, Landau & Hirsch
Former Commissioner
Securities and Exchange Commission
Martha R. Seger, Ph.D.
Chairman
Martha Seger & Associates
Former Governor
Federal Reserve Board
Officers
Elizabeth R. Bramwell, CFA
President, Chief Investment and Financial Officer
Mary F. McCollum
Secretary and Treasurer
Margaret A. Bancroft
Assistant Secretary
Investment Adviser
Bramwell Capital Management, Inc.
Administrator
Sunstone Financial Group, Inc.
Counsel
Dechert Price & Rhoads
Independent Certified Public Accountants
Coopers & Lybrand L.L.P.
Custodian, Transfer Agent and Dividend Disbursing Agent
Firstar Trust Company
This financial statement is submitted for the general information of the
shareholders of The Bramwell Growth Fund. It is not authorized for distribution
to prospective investors unless preceded or accompanied by an effective
prospectus.
SEMI-ANNUAL REPORT
December 31, 1995
The Bramwell Growth Fund
Elizabeth R. Bramwell, CFA
President and Chief Investment Officer
The Bramwell Funds, Inc.
1-800-BRAMCAP
1-800-272-6227
