Sunstone Financial Group, Inc.
207 East Buffalo Street, Suite 400
Milwaukee, WI 53202
July 26, 1996
Via EDGAR
Securities and Exchange Commission
Division of Investment Management
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: The Bramwell Growth Fund (the Fund);
(Registration Nos.: 33-79742; 811-8546
Gentleman:
On behalf of the Fund and pursuant to Rule 30b2-1 and Section 24(b) under the
Investment Company Act of 1940, as amended, we hereby file the Annual Report to
shareholders for the period ended June 30, 1996.
If you have any questions concerning this filing, please do not hesitate to
contact me.
Very Truly Yours,
/s/ Mike Yanke
Mike Yanke
Sunstone Financial Group, Inc.
Client Services and Accounting Manager
MEY/jv
Encl.
ANNUAL REPORT - JUNE 1996
The Bramwell Growth Fund
ELIZABETH R. BRAMWELL, CFA
President and Chief Investment Officer
The Bramwell Funds, Inc.
1-800-BRAMCAP
(1-800-272-6227)
The Bramwell Growth Fund
Annual Report-June 1996
745 Fifth Avenue
New York, New York 10151
Dear Fellow Shareholders:
Investment Results - Fiscal Year Ended June 1996
The Bramwell Growth Fund ended the June 1996 fiscal year with a 19.0% annual
gain. Since inception, August 1, 1994, the Fund's cumulative return was 46.5%
resulting in a compound average annual rate of return of 22.1% for the period.
In the June quarter, the Fund advanced 3.1% to $14.60 per share. Investment
results compared to those of the S&P 500 Stock Index and the Lipper Growth Funds
Index were:
COMPARATIVE INVESTMENT JUNE Q CALENDAR ONE SINCE
RETURNS 1996 YEAR-TO-DATE YEAR INCEPTION <F1>
---------------------- ------ ------------- ----- ----------------
THE BRAMWELL GROWTH FUND 3.1% 7.7% 19.0% 22.1%
S&P 500 Stock Index <F2> 4.4 10.0 25.9 24.7
Lipper Growth Funds Index <F3> 3.3 8.0 20.7 21.2
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.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/1/94 9/30/94 12/31/95 3/31/95 6/30/95 9/30/95 12/31/95 3/31/96 6/30/96
------ ------- -------- ------- ------- ------- -------- ------- -------
Bramwell Growth Fund 10,000 10,220 10,259 11,100 12,311 13,713 13,599 14,211 14,653
S&P 500 Stock Index 10,000 10,203 10,089 10,818 11,975 13,062 13,380 13,983 14,449
Lipper Growth Funds Index 10,000 10,086 10,082 11,067 12,118 13,080 13,866 14,613 15,259
<FN>
<F1> Compound average annual return since inception 8/1/94. Cumulative return
since inception through June 30, 1996 for The Bramwell Growth Fund was 46.5%
compared to 52.6% for the S&P 500 Stock Index and 44.5% for the Lipper Growth
Funds 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 Funds 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 equally weighted and returns include the reinvestment
of dividends and are net of expenses.
</TABLE>
The Fund ended June with net assets of $141.5 million and some 15,500
shareholders compared to $62.2 million and slightly over 6,500 shareholders at
the end of June 1995.
Commentary
Continuing gains in stocks of selected retailers, consumer products, and
companies providing outsourced financial data processing and temporary personnel
positively affected June quarter results. We continue to view outsourcing as a
secular trend that provides various investment opportunities. On the other
hand, the spectre of higher interest rates, given a stronger than expected job
market, negatively impacted small cap stocks. Also, declines in semiconductor
equipment and capacitor stocks, where slowing demand has become extended,
negatively impacted results. We have adjusted the portfolio accordingly. The
Fund ended the June quarter with a median market capitalization of $1.7 billion,
and we continue to focus on mid-cap companies, i.e., those with market
capitalizations of $1 to $5 billion, where we think that there are numerous
opportunities for an optimum mix of growth and liquidity, especially given the
market correction.
Outlook
Second quarter growth in Gross Domestic Product (GDP) is generally believed to
have been an above-trend 4% and, in our opinion, reflects (1) some redeployment
of appreciated financial assets into physical assets (e.g., housing and
automobiles); and (2) the deployment of high-powered capital raised in the
equity markets into research, development and capital spending, thereby
stimulating job creation.
Going forward, we look for GDP growth to slow to 2-3% and for moderate inflation
of some 3%. Some of the recent strength in job creation reflects hiring for
one-time events such as the Olympics and election campaigns. Furthermore, job
creation in June of 239,000 was only in line with population growth. We think
that the U.S. economy can grow more than 2.5% without meaningfully increased
inflation given global technological change coupled with free markets driving
efficiency and competitive pricing. A stronger economy with more people working
would also increase tax revenues and lower unemployment expenditures and thereby
favorably impact the federal deficit and interest rates as well as facilitate
consumer and business debt repayment. In other words, we think good news about
economic growth is good news.
We expect that the Federal Reserve is likely to take a cautious position on
raising interest rates given volatile crosscurrents in corporate profits and the
economy. The expectation of higher rates is largely priced into the market and
has already impacted the ability of emerging companies, generally perceived as
the primary creators of jobs and innovation, to raise money in the equity
markets. Mortgage rates have risen and are likely to slow the housing market;
capital spending is decelerating to historical levels as spending on technology,
which accounts for about half of capital spending, takes a breather. Political
uncertainty, especially with regard to future tax and health care policy, may
also dampen the economy.
We continue to believe that there are numerous companies with innovative
products and services as well as global opportunities that transcend the general
economy and provide attractive investments for our Fund. The stock market
correction has enhanced potential investment returns and enabled the Fund to
cautiously buy selected stocks at more attractive valuations for the long term.
When the market moves on the upside, we want to be positioned to benefit.
Investment Approach
The Bramwell Growth Fund seeks to achieve long-term capital growth by investing
in companies believed to be positioned to benefit from such factors as 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.
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 so that
more shares can be bought for the same amount than when they are higher priced.
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
July 22, 1996
The outlook and opinions expressed above represent the views of the investment
adviser as of July 22, 1996, and are subject to change as market and economic
events unfold.
TOP TEN INDUSTRY SECTORS
JUNE 30, 1996
-----------------------------------------------
Retailing 17.5%
Industrial Products 9.9
Information Processing 9.2
Healthcare 7.1
Temporary Help Services 5.9
Insurance 5.4
Communications 5.3
Technology 5.3
Entertainment 5.1
Apparel 4.7
TOP TEN EQUITY HOLDINGS
JUNE 30, 1996
---------------------------------------------
Eckerd 3.9%
Walgreen 3.1
Regal Cinemas 2.8
Allstate 2.6
Johnson & Johnson 2.5
General Electric 2.5
Thermo Electron 2.2
Procter & Gamble 2.1
Robert Half 2.1
Red Lion Hotels 1.9
The Bramwell Growth Fund
PORTFOLIO OF INVESTMENTS - JUNE 30, 1996
Shares Value
------ -----
COMMON STOCKS - 97.00%
Apparel - 4.70%
Cutter & Buck, Inc.<F4> 25,000 $ 303,125
Donna Karan International, Inc. 1,000 28,000
Gap (The) Inc. 40,000 1,285,000
Nike, Inc. 20,000 2,055,000
Oakley, Inc.<F4> 40,000 1,820,000
Sola International, Inc.<F4> 40,000 1,150,000
----------
6,641,125
Automotive/Heavy
Equipment - 2.39%
Case Corporation 20,000 960,000
Deere & Company 38,000 1,520,000
General Motors Corporation, Class H 15,000 901,875
----------
3,381,875
Communications - 5.34%
Asia Satellite Telecommunications - ADS<F4> 500 14,875
Lucent Technologies, Inc.<F4> 55,500 2,102,062
MFS Communications Company, Inc.<F4> 30,000 1,128,750
OzEmail Ltd. - ADS<F4> 16,000 206,000
U.S. Satellite Broadcasting Company<F4> 57,500 2,170,625
WorldCom, Inc.<F4> 35,000 1,938,125
----------
7,560,437
Construction & Engineering - 0.69%
Fluor Corporation 15,000 980,625
Energy - 0.51%
Carbo Ceramics, Inc.<F4> 6,500 143,000
Diamond Offshore Drilling, Inc.<F4> 10,000 572,500
----------
715,500
Entertainment - 5.10%
Cinar Films, Inc., Class B<F4> 30,000 652,500
Gaylord Entertainment Company 58,537 1,653,670
Harman International Industries 10,000 492,500
Pixar, Inc.<F4> 25,500 497,250
Regal Cinemas, Inc.<F4> 85,500 3,911,625
----------
7,207,545
Shares Value
------ -----
Financial Services - 4.60%
Charles Schwab Corporation (The) 40,000 $ 980,000
Collective Bancorp, Inc. 40,000 945,000
Dow Jones & Company, Inc. 15,000 626,250
MSB Bancorp, Inc. 17,000 293,250
Northern Trust Company 35,000 2,021,250
Washington Mutual, Inc. 55,000 1,643,125
----------
6,508,875
Food & Beverage - 2.85%
CPC International, Inc. 35,700 2,570,400
Hershey Foods Corporation 20,000 1,467,500
----------
4,037,900
Healthcare - 7.05%
Ballard Medical Products 57,900 1,107,337
BioChem Pharmaceuticals, Inc. - ADR<F4> 10,000 375,000
Guidant Corporation<F4> 31,000 1,526,750
Johnson & Johnson 70,200 3,474,900
Merck & Company, Inc. 40,000 2,585,000
Neurex Corporation<F4> 35,500 776,563
Urocor, Inc.<F4> 10,000 122,500
----------
9,968,050
Household Products &
Furnishings - 2.11%
Procter & Gamble Company 33,000 2,990,625
Industrial Products - 9.89%
C.P. Clare Corporation<F4> 40,000 1,030,000
Emerson Electric Company 24,900 2,250,337
General Electric Company 40,000 3,460,000
Illinois Tool Works, Inc. 40,000 2,705,000
Kennametal, Inc. 35,400 1,203,600
Kent Electronics Corporation<F4> 20,000 625,000
Methode Electronics, Inc. - A 45,500 773,500
Molex Inc., Class A 50,687 1,488,931
X-Rite, Inc. 30,000 457,500
----------
13,993,868
Shares Value
------ -----
COMMON STOCKS - 97.00% (cont'd.)
Information Processing:
Office Equipment - 2.52%
Hewlett-Packard Company 25,000 $2,490,625
Xerox Corporation 20,000 1,070,000
----------
3,560,625
Information Processing:
Services - 6.24%
Automatic Data Processing, Inc. 55,000 2,124,375
Computer Sciences Corporation<F4> 30,000 2,242,500
Continuum Company, Inc.<F4> 35,100 2,035,800
DST Systems, Inc.<F4> 16,000 512,000
First Data Corporation 20,929 1,666,472
Paychex, Inc. 5,000 240,625
----------
8,821,772
Information Processing:
Software - 0.43%
Microsoft Corporation<F4> 5,000 600,625
Insurance - 5.41%
Allstate Corporation 80,000 3,650,000
American International Group, Inc. 25,000 2,465,625
Berkley (W.R.) Corporation 21,500 897,625
Horace Mann Educators Corporation 20,000 635,000
----------
7,648,250
Lodging - 2.53%
Micros Systems, Inc.<F4> 30,500 850,188
Red Lion Hotels, Inc.<F4> 130,000 2,730,000
----------
3,580,188
Metals - 0.69%
OM Group, Inc. 25,000 981,250
Packaging - 1.09%
Sealed Air Corporation<F4> 15,000 504,375
Sonoco Products Company<F4> 36,750 1,042,781
----------
1,547,156
Shares Value
------ -----
Restaurants - 2.11%
Landry's Seafood Restaurants, Inc.<F4> 10,000 $ 247,500
Lone Star Steakhouse and Saloon, Inc.<F4> 70,000 2,642,500
Quality Dining, Inc. 3,000 98,250
----------
2,988,250
Retailing - 17.48%
Albertsons, Inc. 60,300 2,494,912
Eckerd Corporation<F4> 245,000 5,543,125
Home Depot, Inc. (The) 30,000 1,620,000
Just For Feet, Inc.<F4> 44,000 2,326,500
Kohl's Corporation<F4> 50,000 1,831,250
OfficeMax, Inc.<F4> 65,400 1,561,425
PETsMART, Inc.<F4> 5,000 238,750
Saks Holdings, Inc.<F4> 10,100 344,663
Staples, Inc.<F4> 80,000 1,560,000
Sunglass Hut International<F4> 35,000 853,125
Tiffany & Co. 27,400 2,000,200
Walgreen Company 130,000 4,355,000
----------
24,728,950
Technology:
Semiconductors & Equipment - 1.04%
Fusion Systems Corporation<F4> 30,000 742,500
Intel Corporation 10,000 734,375
----------
1,476,875
Technology: Other - 4.30%
Affinity Technology Group, Inc.<F4> 20,000 170,000
C-Cube Microsystems, Inc.<F4> 15,000 495,000
Conductus, Inc.<F4> 20,000 212,500
Loral Space & Communications Ltd. 25,000 340,625
Thermo Electron Corporation<F4> 75,475 3,141,647
ThermoLase Corporation<F4> 25,000 681,250
ThermoQuest Corporation<F4> 30,000 416,250
Waters Corporation<F4> 18,900 623,700
----------
6,080,972
Shares Value
------ -----
COMMON STOCKS - 97.00% (cont'd.)
Temporary Help Services - 5.86%
Interim Services, Inc.<F4> 55,000 $ 2,365,000
Labor Ready, Inc.<F4> 21,000 588,000
Manpower, Inc. 20,100 788,925
On Assignment, Inc.<F4> 41,000 1,527,250
Registry (The), Inc.<F4> 3,000 87,750
Robert Half International, Inc.<F4> 105,000 2,926,875
----------
8,283,800
Transportation - 2.07%
Bombardier, Inc., Class B 80,000 1,198,000
Kansas City Southern Industries, Inc. 40,400 1,732,150
----------
2,930,150
Total Common Stocks
(Cost $113,792,550) 137,215,288
-----------
Principal
Amount Value
------ -----
VARIABLE RATE DEMAND NOTES - 5.02%
General Mills, Inc. $2,455,000 $ 2,455,000
Pitney Bowes, Inc. 483,000 483,000
Southwestern Bell Corporation 997,000 997,000
Warner Lambert 2,046,000 2,046,000
Wisconsin Electric Power Co. 1,119,000 1,119,000
----------
Total Variable Rate Demand Notes
(Cost $7,100,000) 7,100,000
----------
TOTAL INVESTMENTS - 102.02%
(Cost $120,892,550) 144,315,288
Liabilities less Cash
and Other Assets - (2.02)% (2,860,372)
----------
NET ASSETS - 100.00%
(9,691,468 shares outstanding) $141,454,916
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $14.60
======
<F4> Non-income producing security.
The Bramwell Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
ASSETS:
Investments at market value (cost $120,892,550) $144,315,288
Receivable for investments sold 148,750
Organizational costs, net 109,541
Dividends and interest receivable 102,068
Receivable from adviser 33,139
Cash 893
------------
Total Assets 144,709,679
------------
LIABILITIES:
Payable for securities purchased 3,002,777
Accrued expenses 134,794
Accrued investment advisory fees 117,192
------------
Total Liabilities 3,254,763
------------
NET ASSETS $141,454,916
============
NET ASSETS CONSIST OF:
Capital stock $116,733,332
Undistributed net realized gain on investments 1,298,846
Net unrealized appreciation on investments 23,422,738
------------
NET ASSETS $141,454,916
============
CAPITAL STOCK, $.0001 par value
Authorized 500,000,000
Issued and outstanding 9,691,468
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE $14.60
======
STATEMENT OF OPERATIONS
For the Year Ended June 30, 1996
INVESTMENT INCOME:
Dividends $ 1,009,097
Interest 336,319
------------
Total Investment Income 1,345,416
------------
EXPENSES:
Investment advisory fees 1,238,851
Distribution fees 309,708
Shareholder servicing fees 184,855
Fund administration and accounting fees 159,329
Federal and state registration fees 94,559
Professional fees 51,807
Reports to shareholders 46,012
Custody fees 45,115
Directors' fees 25,731
Other 55,808
------------
Total expenses before waiver 2,211,775
Less: Waiver of fees by adviser (43,737)
------------
Net Expenses 2,168,038
------------
NET INVESTMENT LOSS (822,622)
------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment transactions 2,409,292
Change in unrealized appreciation on investments 16,198,269
------------
Net Gain on Investments 18,607,561
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $17,784,939
============
See notes to financial statements.
The Bramwell Growth Fund
STATEMENT OF CHANGES IN NET ASSETS
For the Period
Year August 1, 1994<F5>
Ended to
June 30, 1996 June 30, 1995
------------- -------------
OPERATIONS:
Net investment loss $ (822,622) $ (23,655)
Net realized gain on
investments 2,409,292 90,406
Change in unrealized
appreciation on
investments 16,198,269 7,224,469
------------ -----------
Net increase in net assets
resulting from
operations 17,784,939 7,291,220
------------ -----------
CAPITAL SHARE
TRANSACTIONS 61,795,014 54,862,480
------------ -----------
DIVIDENDS PAID FROM:
Net investment income - (12,357)
Net realized gains (366,380) -
------------ -----------
Total dividends paid (366,380) (12,357)
------------ -----------
TOTAL INCREASE IN
NET ASSETS 79,213,573 62,141,343
NET ASSETS:
Beginning of period 62,241,343 100,000
------------ -----------
End of period $141,454,916 $62,241,343
============ ===========
<F5> Commencement of operations
FINANCIAL HIGHLIGHTS
For the Period
Year August 1, 1994<F5>
Ended to
June 30, 1996 June 30, 1995
------------- -------------
Net asset value, beginning
of period $12.30 $10.00
Income from investment
operations:
Net investment loss (0.08) - <F6>
Net realized and unrealized
gains on investments 2.42 2.31
------- ------
Total from investment
operations 2.34 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 $14.60 $12.30
======= ======
Total return 19.0% 23.1%
Supplemental data
and ratios:
Net assets, end of period $141,454,916 $62,241,343
Ratio of expenses to
average net assets<F7><F8> 1.75% 1.75%
Ratio of net investment loss to
average net assets <F7><F8> (0.66)% (0.11)%
Portfolio turnover rate 118% 80%
Average commission rate paid on
portfolio investment
transactions $0.060 N/A
<F5> Commencement of operations
<F6> Less than $(0.01)
<F7> 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 year ended June 30, 1996 and the period August 1, 1994 to
June 30, 1995, would be 1.79% and (0.70)% and 2.68% and (1.04)%, respectively.
<F8> Annualized for the period August 1, 1994 to June 30, 1995
See notes to financial statements.
The Bramwell Growth Fund
NOTES TO FINANCIAL STATEMENTS
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 dis-
tributions determined annually in accordance with federal tax regulations which
may differ from generally accepted accounting principles. Accordingly, at June
30, 1996, reclassifications were recorded from accumulated net investment losses
to reduce capital stock by $15,622 and undistributed net realized gain on
investments by $807,000.
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 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. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Fund for the year ended June 30, 1996 and the
period August 1, 1994 to June 30, 1995, were as follows:
June 30, 1996
----------------------------------
Shares Dollars
------ -------
Shares sold 10,437,428 $141,226,265
Dividends reinvested 22,178 298,517
Shares redeemed (5,829,712) (79,729,768)
----------- ------------
4,629,894 $61,795,014
========= ===========
June 30, 1995
----------------------------------
Shares Dollars
------ -------
Shares sold 5,234,360 $56,905,122
Dividends reinvested 1,155 11,842
Shares redeemed (183,941) (2,054,484)
--------- -----------
5,051,574 $54,862,480
========= ===========
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments for the Fund, for the year ended June 30, 1996 were $198,648,856 and
$138,348,347, respectively. There were no purchases or sales of long-term U.S.
Government securities. At June 30, 1996, based on aggregate cost for federal
income tax purposes of $121,543,343, gross unrealized appreciation and
depreciation of investments were as follows:
Appreciation $25,836,046
Depreciation (3,064,101)
------------
Net appreciation on investments $22,771,945
============
For the fiscal year ended June 30, 1996, 100% of dividends paid qualifies for
the dividends received deduction available to corporate shareholders.
5. 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, 1997.
After such date, the expense limitation may be terminated or revised at any
time.
6. 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.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
The Bramwell Funds, Inc.
We have audited the accompanying statement of assets and liabilities of The
Bramwell Funds, Inc. - The Bramwell Growth Fund, including the schedule of
investments, as of June 30, 1996, and the related statement of operations for
the year then ended and the statements of changes in net assets and the
financial highlights for the year ended June 30, 1996 and for the period from
August 1, 1994 to June 30, 1995. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material mistatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Bramwell Funds, Inc. - The Bramwell Growth Fund, as of June 30, 1996, and the
results of its operations for the year then ended and the changes in its net
assets and the financial highlights for the year ended June 30, 1996 and for the
period from August 1, 1994 to June 30, 1995, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Milwaukee, Wisconsin
July 22, 1996
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
Director & Secretary
The Reed Foundation, Inc.
Retired Partner
Whitman, Breed, Abbott & Morgan
Former Commissioner & Chairman
Securities & Exchange Commission
Isabel H. Benham
Director, Board of Trustees
John W. Barringer III National Railroad Library
George F. Keane
Chairman
Trigen Energy Corp.
President Emeritus
The Common Fund, Inc.
James C. Sargent
Counsel
Opton, Handler, Gottlieb, Feiler & Katz
Former Commissioner
Securities & 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.
