ANNUAL REPORT
JUNE 30, 1997
(PICTURE)
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 1997
745 Fifth Avenue
New York, New York 10151
DEAR FELLOW SHAREHOLDERS:
INVESTMENT RESULTS - FISCAL YEAR ENDED JUNE 30, 1997
The equity markets broadened in the June 1997 quarter and THE BRAMWELL GROWTH
FUND gained 19.3% to close at $17.53 net asset value per share - outperforming
the S&P 500 Index. For the fiscal year ending in June, the Fund appreciated
22.2% and from inception, August 1, 1994, the cumulative return was 79.1% and
the compound average annual return was 22.1%. Investment results compared to
those of various other indices were as follows:
COMPARATIVE INVESTMENT JUNE Q CALENDAR ONE SINCE
RETURNS 1997 YEAR-TO-DATE YEAR INCEPTION(a)
- ---------------------------------------------------------------------------
THE BRAMWELL GROWTH FUND 19.3% 16.7% 22.2% 22.1%
S&P 500 Stock Index (b) 17.4 20.5 34.7 28.0
Lipper Growth Funds Index (c) 15.8 15.4 25.6 22.7
Lipper Mid-Cap Funds Index (d) 15.9 8.2 12.1 21.5
<TABLE>
8/1/94 12/31/94 6/30/95 12/31/95 6/30/96 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
THE BRAMWELL GROWTH FUND 10,000 10,259 12,311 13,599 14,653 15,342 17,906
S&P 500 Stock Index 10,000 10,082 12,118 13,866 15,259 17,054 20,556
Lipper Growth Funds Index 10,000 10,089 11,975 13,380 14,449 15,723 18,144
Lipper Mid-Cap Funds Index 10,000 10,532 12,242 14,016 15,737 16,301 17,636
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.
(a) Compound average annual return since inception 8/1/94. Cumulative return since inception through June 30, 1997 for The Bramwell
Growth Fund was 79.1% compared to 105.6% for the S&P 500 Stock Index, 81.4% for the Lipper Growth Funds Index and 76.4% for the
Lipper Mid-Cap Funds Index. (b) 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. (c) The Lipper
Growth Funds Index is comprised of the 30 largest funds which by prospectus or portfolio practice, normally invest in companies with
long-term earnings expected to grow significantly faster than the earnings of the stocks represented in the major unmanaged stock
indices. (d) The Lipper Mid-Cap Funds Index is comprised of the 30 largest funds which by prospectus or portfolio practice, invest
primarily in companies with market capitalizations less than $5 billion at the time of purchase. Funds in the Lipper Growth Funds
and Lipper Mid-Cap Funds Indices are equal weighted and returns include the reinvestment of all dividends and are net of expenses.
</TABLE>
Since June 30 through August 1, 1997, The Bramwell Growth Fund's THIRD BIRTHDAY,
the Fund returned 9.4% compared to 7.2% for the S&P 500 Index. For the Fund's
first three years through August 1, 1997, the Fund appreciated 95.9%
cumulatively and the compound average annual return was 25.1%.
COMMENTARY
For the fiscal year ended June 30, 1997, the macroeconomic backdrop for equities
was favorable: steady economic growth, low inflation, moderate interest rates,
and higher employment levels. Large capitalization stocks, especially the
largest twenty-five companies in the S&P 500 Index, led performance in the first
nine months, but equity appreciation came from a broadening universe in the June
quarter as the likelihood of the Federal Reserve raising interest rates
diminished in the face of a slowing economy and minimal inflation. The Consumer
Price Index rose only 0.1% in June, the lowest rate since the mid-1960s.
June quarter profits were strong, and with flat to lower interest rates,
price/earnings ratios expanded, especially for smaller capitalization stocks.
Historically, when the market moves on the upside, compressed gains are
generally made in the first few months, and in the case of the Fund, the average
annual return from inception improved from 16.4% at the end of March to 22.1% at
the end of June. For the Fund, financial stocks performed well as did
technology, pharmaceutical, and other globally positioned companies. Computer
Sciences, a laggard in the March quarter, rebounded, and along with Dell
Computer, General Electric, Walgreen, Robert Half, Microsoft, Illinois Tool
Works and On Assignment, added the greatest dollar value to the Fund's
portfolio. Some 40% of the Fund's assets at the beginning of the June quarter
were invested in equities with market capitalizations under $5 billion. These
smaller companies hampered relative performance in the first nine months of the
fiscal year but enhanced performance in the June quarter, when, for example,
some 7% of the portfolio appreciated to market capitalizations above the $5
billion level.
The Fund seeks to invest in companies that are expected to benefit from
investment spending for research, plant and market expansion, which may or may
not be immediately reflected in the equity market, and seeks to invest in
companies that are perceived to be attractively valued relative to their future
growth prospects. We estimate that the 1997 and 1998 earnings growth rates for
our portfolio approximate 21% for which we are paying 100% and 85%,
respectively. This compares favorably to paying some 200% for estimated growth
of 8-10% over the same time period for the S&P 500 Index. Longer term, we expect
stock prices to move with profit growth, and when interest and inflation rates
are flat to declining, price/earnings multiple expansion is likely to occur as
well.
OUTLOOK
The macroeconomic outlook for the capital markets remains favorable. We
anticipate annual Gross Domestic Product growth of 3.0-3.5% going forward, less
than the revised 4.9% rate for the first calendar quarter but still solid and
reflecting higher employment levels, real wage increases of 2.2%, the highest
since the early 1970s, wealth effect from a rising stock market, global market
expansion, and spending for new technology. We anticipate inflation staying
around 2% given global competitive capitalism, technology-driven productivity
gains, increased capacity, deregulation, and a strong dollar. We expect interest
rates to remain about the same given low inflation and a declining federal
deficit as the result of higher tax revenues stemming from higher profit and
employment levels.
Low inflation and stable interest rates should continue to encourage equity
market outperformance from a broader universe of small and mid-cap stocks where
valuations are likely to be more attractive than for the largest S&P 500 Index
stocks, and in fact, where we are finding many new investment ideas. We also
continue to look for effective users of technology across industries. Technology
facilitates economies of scale and we believe that the financial services
industry, in particular, can use technology to broaden distribution and cross
market products and services, consolidate, and reduce redundant costs. Advances
in computing and communications, e.g., the Internet, are driving demand for
product upgrades and new business opportunities. Emerging countries continue to
provide new markets for existing products, ranging from household items to
financial services to technology. Assuming political stability and free markets,
we may be entering a period of synchronized global growth presenting numerous
investment opportunities for our Fund.
FUND INVESTMENT
The minimum initial investment for a Regular account is $1,000 and for an IRA or
Gift to Minor account $500. 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 to smooth
the effects of volatility. 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
August 1, 1997
The outlook and opinions expressed above represent the views of the investment
adviser as of August 1, 1997, and are subject to change as market and economic
events unfold.
TOP TEN INDUSTRY SECTORS
JUNE 30, 1997
---------------------------
Financial Services 18.7%
Information Processing 16.3
Industrial Products 12.1
Retailing 8.9
Healthcare 7.7
Temporary Help 6.5
Insurance 5.3
Electronics 3.8
Household Products 3.2
Energy 2.8
TOP TEN EQUITY HOLDINGS
JUNE 30, 1997
---------------------------
Computer Sciences 3.7%
Walgreen 3.4
Dell Computer 3.3
Illinois Tool Works 3.2
General Electric 3.1
Robert Half 2.6
Washington Mutual 2.6
Intel 2.6
Microsoft 2.5
American International Group 2.4
THE BRAMWELL GROWTH FUND
PORTFOLIO OF INVESTMENTS - JUNE 30, 1997
SHARES VALUE
----- -----
COMMON STOCKS - 97.99%
APPAREL - 1.74%
Cutter & Buck, Inc.* 45,000 $ 731,250
Nike, Inc. 25,000 1,459,375
------------
2,190,625
AUTOMOTIVE & HEAVY
EQUIPMENT - 0.95%
Lear Corporation* 27,000 1,198,125
CHEMICALS - 1.32%
OM Group, Inc. 50,000 1,656,250
COMMUNICATIONS - 1.27%
WorldCom, Inc.* 50,000 1,600,000
ELECTRONICS - 3.77%
Black Box Corporation* 20,000 805,000
Ingram Micro, Inc.* 20,100 484,913
Intel Corporation 23,000 3,261,687
Kent Electronics Corporation* 5,500 201,781
------------
4,753,381
ENERGY - 2.75%
Camco International, Inc. 5,000 273,750
Diamond Offshore Drilling, Inc.* 20,000 1,557,500
Global Marine, Inc.* 40,000 930,000
Rowan Companies, Inc.* 25,000 704,687
------------
3,465,937
ENTERTAINMENT &
LEISURE TIME - 2.62%
Cinar Films, Inc., Class B* 30,000 975,000
Regal Cinemas, Inc.* 70,250 2,318,250
------------
3,293,250
FINANCIAL SERVICES - 18.75%
American Express 35,000 2,607,500
Charles Schwab Corporation (The) 35,000 1,424,062
Chase Manhattan Corporation 23,000 2,232,438
Citicorp 7,000 843,937
First Union Corporation 30,000 2,775,000
ING Groep N.V. - ADS 10,000 463,750
Merrill Lynch & Co., Inc. 20,000 1,192,500
MSB Bancorp, Inc. 17,000 342,125
SHARES VALUE
------ -----
FINANCIAL SERVICES - 18.75% (CONT'D.)
NationsBank Corporation 45,000 $ 2,902,500
Northern Trust Company 55,000 2,660,625
Norwest Corporation 25,000 1,406,250
Travelers Group, Inc. 15,000 945,938
Washington Mutual, Inc. 55,000 3,286,250
Zions Bancorporation 14,000 526,750
------------
23,609,625
FOOD & BEVERAGE - 1.98%
CPCInternational, Inc. 15,000 1,384,687
Hershey Foods Corporation 20,000 1,106,250
------------
2,490,937
HEALTHCARE - 7.69%
Alkermes, Inc.* 15,000 217,500
Biacore International, AB - ADS* 25,000 290,625
BioChem Pharmaceuticals, Inc. - ADR* 35,000 778,750
Closure Medical Corporation* 10,000 192,500
CYTYC Corporation* 15,000 406,875
Elan Corporation, PLC* 10,000 452,500
Eli Lilly & Company 5,000 546,563
Johnson & Johnson 35,200 2,266,000
Merck & Company, Inc. 20,000 2,070,000
Neurex Corporation* 30,500 430,813
Pfizer, Inc. 17,000 2,031,500
------------
9,683,626
HOME & OFFICE FURNITURE - 2.27%
Herman Miller, Inc. 25,000 900,000
Knoll, Inc.* 10,000 237,500
Leggett & Platt, Inc. 40,000 1,720,000
------------
2,857,500
HOUSEHOLD PRODUCTS - 3.19%
Colgate-Palmolive Company 40,000 2,610,000
Procter & Gamble Company 10,000 1,412,500
------------
4,022,500
INDUSTRIAL PRODUCTS - 12.10%
Emerson Electric Company 50,800 2,797,175
Fastenal Company 5,000 245,000
General Electric Company 60,000 3,922,500
Illinois Tool Works, Inc. 80,000 3,995,000
Mineral Technologies, Inc. 40,000 1,500,000
Molex Inc., Class A 57,108 1,991,642
PORTFOLIO OF INVESTMENTS - JUNE 30, 1997 (CONTINUED)
SHARES VALUE
----- -----
COMMON STOCKS - 97.99% (CONT'D.)
INDUSTRIAL PRODUCTS - 12.10% (CONT'D.)
Shaw Group, Inc.* 15,000 $ 243,750
ThermoQuest Corporation* 35,000 542,500
------------
15,237,567
INFORMATION PROCESSING:
OFFICE EQUIPMENT - 5.79%
Compaq Computer Corporation* 21,000 2,084,250
Dell Computer Corporation* 35,000 4,110,312
Gateway 2000, Inc.* 20,000 648,750
International Business Machines Corp. 5,000 450,938
------------
7,294,250
INFORMATION PROCESSING:
SERVICES - 6.68%
APAC TeleServices, Inc.* 33,000 641,437
Automatic Data Processing, Inc. 23,000 1,081,000
Claremont Technology Group, Inc.* 60,000 1,425,000
Computer Sciences Corporation* 65,029 4,690,217
Paychex, Inc. 15,000 570,000
------------
8,407,654
INFORMATION PROCESSING:
SOFTWARE - 3.84%
Baan Company N.V.* 4,000 275,500
Great Plains Software, Inc.* 300 8,100
McAfee Associates, Inc.* 10,000 631,250
Microsoft Corporation* 25,000 3,159,375
Seachange International, Inc.* 27,000 762,750
------------
4,836,975
INSURANCE - 5.28%
Allstate Corporation 35,000 2,555,000
American International Group, Inc. 20,000 2,987,500
Conseco, Inc. 30,000 1,110,000
------------
6,652,500
PACKAGING - 0.57%
Sealed Air Corporation* 15,000 712,500
RETAILING - 8.89%
Amazon.com, Inc.* 10,000 185,000
Home Depot, Inc. (The) 25,000 1,723,438
Just For Feet, Inc.* 42,000 732,375
Kohl's Corporation* 45,000 2,382,187
SHARES VALUE
----- -----
RETAILING - 8.89% (CONT'D.)
Tiffany & Co. 40,800 $ 1,884,450
Walgreen Company 80,000 4,290,000
------------
11,197,450
TEMPORARY HELP - 6.54%
Interim Services, Inc.* 54,900 2,443,050
Labor Ready, Inc.* 36,000 364,500
On Assignment, Inc.* 50,000 1,950,000
Registry, (The) Inc.* 4,000 184,000
Robert Half International, Inc.* 70,000 3,294,375
------------
8,235,925
TOTAL COMMON STOCKS
(Cost $83,155,721) 123,396,577
------------
PRINCIPAL
AMOUNT VALUE
--------- -----
VARIABLE RATE
DEMAND NOTES - 1.37%
American Family Financial Services $276,000 $ 276,000
General Mills, Inc. 418,000 418,000
Johnson Controls, Inc. 552,000 552,000
Pitney Bowes Credit Corp. 382,000 382,000
Wisconsin Electric Power Corp. 92,000 92,000
------------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $1,720,000) 1,720,000
------------
TOTAL INVESTMENTS - 99.36%
(Cost $84,875,721) 125,116,577
CASH AND OTHER ASSETS
LESS LIABILITIES - 0.64% 807,474
------------
NET ASSETS - 100.00%
(7,185,143 shares outstanding) $125,924,051
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $17.53
======
*Non-income producing security
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997
ASSETS:
Investments at value (cost $84,875,721) $125,116,577
Receivable for investments sold 916,825
Organizational costs, net of accumulated
amortization 78,841
Dividends and interest receivable 58,220
Prepaids and other assets 19,041
------------
Total Assets 126,189,504
------------
LIABILITIES:
Accrued investment advisory fee 121,163
Accrued expenses 118,619
Accrued distribution fees 25,671
------------
Total Liabilities 265,453
------------
NET ASSETS $125,924,051
============
NET ASSETS CONSIST OF:
Capital stock $ 77,776,273
Undistributed net realized gain on investments 7,906,922
Net unrealized appreciation on investments 40,240,856
------------
NET ASSETS $125,924,051
============
CAPITAL STOCK, $.0001 par value
Authorized 500,000,000
Issued and outstanding 7,185,143
NET ASSET VALUE, REDEMPTION PRICE
AND OFFERING PRICE PER SHARE $17.53
======
See notes to financial statements.
STATEMENT OF OPERATIONS
For the Year Ended June 30, 1997
INVESTMENT INCOME:
Dividends $ 939,619
Interest 207,056
------------
Total Investment Income 1,146,675
------------
EXPENSES:
Investment advisory fees 1,274,930
Distribution fees 318,732
Shareholder servicing fees 210,438
Fund administration and accounting fees 158,120
Reports to shareholders 63,235
Professional fees 52,878
State registration fees 42,850
Custody fees 41,904
Directors' fees 32,787
Amortization of organizational costs 30,700
Other 29,639
------------
Total expenses before waiver 2,256,213
Waiver of fees by adviser (25,071)
------------
Net Expenses 2,231,142
------------
NET INVESTMENT LOSS (1,084,467)
------------
REALIZED AND UNREALIZED GAIN:
Net realized gain on investment transactions 8,927,153
Change in unrealized appreciation on investments 16,818,118
------------
Net Gain on Investments 25,745,271
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $24,660,804
===========
See notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS
Year Year
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
OPERATIONS:
Net investment loss $ (1,084,467) $ (822,622)
Net realized gain on
investments 8,927,153 2,409,292
Change in unrealized
appreciation on
investments 16,818,118 16,198,269
------------- -------------
Net increase in net assets
resulting from
operations 24,660,804 17,784,939
------------- -------------
CAPITAL SHARE
TRANSACTIONS (37,872,592) 61,795,014
------------- -------------
DIVIDENDS PAID FROM:
Net realized gains (2,319,077) (366,380)
------------- -------------
TOTAL (DECREASE)
INCREASE IN
NET ASSETS (15,530,865) 79,213,573
NET ASSETS:
Beginning of period 141,454,916 62,241,343
------------- -------------
END OF PERIOD $125,924,051 $141,454,916
============ ============
See notes to financial statements.
FINANCIAL HIGHLIGHTS
For the Period
Year Year August 1, 1994<F1>
Ended Ended to
Selected Per-Share Data<F2> June 30, 1997 June 30, 1996 June 30, 1995
- -------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING
OF PERIOD $14.60 $12.30 $10.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment loss (0.15) (0.08) --<F3>
Net realized and unrealized
gains on securities 3.35 2.42 2.31
------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS 3.20 2.34 2.31
LESS DISTRIBUTIONS:
Dividends from net investment
income -- -- --
Distributions from capital gains (0.27) (0.04) (0.01)
------- ------- -------
TOTAL DISTRIBUTIONS (0.27) (0.04) (0.01)
------- ------- -------
NET ASSET VALUE, END OF PERIOD $17.53 $14.60 $12.30
======= ======= =======
TOTAL RETURN 22.2% 19.0% 23.1%<F4>
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period $125,924,051 $141,454,916 $62,241,343
Ratio of expenses to average
net assets<F5> 1.75% 1.75% 1.75%<F6>
Ratio of net investment loss
to average net assets<F5> (0.85)% (0.66)% (0.11)%<F6>
Portfolio turnover rate 82% 118% 80%<F4>
Average commission rate paid
on portfolio investment
transactions<F7> $0.0600 $0.0600 N/A
<F1> Commencement of operations
<F2> Information presented relates to a share of capital stock of the Fund
outstanding for the entire period.
<F3> Less than $(0.01)
<F4> Not annualized
<F5> 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 years ended June 30, 1997 and June 30, 1996 and
the period August 1, 1994 to June 30, 1995, would be 1.77% and (0.87)%;
1.79% and (0.70)%; and 2.68% and (1.04)%, respectively.
<F6> Annualized
<F7> Disclosure required, effective for reporting periods beginning after
September 1, 1995.
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
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. Bramwell Capital
Management, Inc. ("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
("GAAP"). The presentation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amount of revenue and expenses during the reporting period. Actual
results could differ from those estimates and assumptions.
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. 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, 1997,
reclassifications were recorded from accumulated net investment losses to reduce
capital stock by $1,084,467.
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.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 years ended June 30, 1997 and 1996,
were as follows:
1997
----
Shares Dollars
------ -------
Shares sold 2,379,335 $ 35,774,589
Dividends reinvested 130,340 1,982,469
Shares redeemed (5,016,000) (75,629,650)
----------- ------------
(2,506,325) $(37,872,592)
=========== ============
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
=========== =============
4. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments for the Fund, for the year ended June 30, 1997 were $101,548,278 and
$141,112,260, respectively. There were no purchases or sales of long-term U.S.
government securities. At June 30, 1997, based on aggregate cost for federal
income tax purposes of $84,907,848, gross unrealized appreciation and
depreciation of investments were as follows:
Appreciation $41,328,833
Depreciation (1,120,104)
-----------
Net appreciation on investments $40,208,729
===========
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, 1999.
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 portfolio of
investments, as of June 30, 1997, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods indicated. 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 misstatement. 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, 1997 by correspondence with the custodian. 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, 1997, and the
results of its operations for the year then ended and the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Milwaukee, Wisconsin
July 18, 1997
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.
