<PAGE> 1
FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(Last amended by 34-32231, eff 6/3/93.)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
------------------
or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period to
------------- -------------
Commission File Number 0-24432
-------
THE AMERICAS GROWTH FUND, INC.
- - -------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
MARYLAND 65-0604786
- - ----------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Indentification No.)
incorporation or organization)
701 Brickell Avenue, Suite 2000, Miami, Florida 33131
- - -------------------------------------------------------------------------------
(Address of principal executive offices)
(305) 374-3575
- - -------------------------------------------------------------------------------
(Issuer's telephone number)
- - -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 of 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: 1,265,100
Transitional Small Business Disclosure Format (Check one): Yes ; No X
----- -----
<PAGE> 2
INDEX
THE AMERICAS GROWTH FUND, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet as of September 30, 1995. (Unaudited)
Statements of Operations for the three months and nine months ended
September 30, 1995.
(Unaudited)
Statement of Changes in Net Assets for the nine months ended
September 30, 1995.
(Unaudited)
Statement of Cash Flows for the nine months ended
September 30, 1995.
(Unaudited)
Notes to Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations, Liquidity and Capital Resources
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signature
<PAGE> 3
THE AMERICAS GROWTH FUND, INC.
BALANCE SHEET
SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments at market or fair value:
Investments in U.S. Treasury Bills $ 4,438,000
Investments in common stock warrants/options 26,700
Investments in notes receivable 100,000
-----------
Total investments (amortized cost of $4,516,500) 4,564,700
Cash and cash equivalents 600,300
Note receivable, related party less allowance
for doubtful collection of $10,000 12,600
Prepaid expenses 1,700
Furniture and equipment, net 10,800
Organizational costs, net 6,000
Deposits 1,100
Deferred tax asset 2,100
Interest receivable 2,900
-----------
5,202,200
-----------
Liabilities:
Accounts payable 7,400
Accrued directors fees 10,800
Deferred tax liability 5,400
-----------
23,600
-----------
$ 5,178,600
-----------
Commitment and transactions with related parties
Net assets:
Preferred stock, $.01 par value, 2,000,000
shares authorized, no shares issued $ -
Common stock, $.01 par value, 10,000,000 shares
authorized, 1,265,100 shares issued and outstanding 12,700
-----------
Capital in excess of par 5,141,300
-----------
Undistributed operating income and investment gains:
Accumulated operating income (2,100)
Realized gains on investments 12,500
Unrealized appreciation on investments 14,200
-----------
24,600
Net assets applicable to outstanding common shares -----------
(equivalent to $4.09 per share, based on outstanding
common shares of 1,265,100) $ 5,178,600
===========
</TABLE>
Read the accompanying notes.
<PAGE> 4
THE AMERICAS GROWTH FUND, INC.
STATEMENTS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, 1995 SEPTEMBER 30, 1995
------------------ ------------------
<S> <C> <C>
Interest income $ 73,800 $ 216,600
----------- -----------
Expenses:
Consulting fees to affiliate 9,000 27,000
Salaries 22,900 67,900
Other 44,300 130,800
----------- -----------
76,200 225,700
----------- -----------
Investment loss before income tax (benefit) (2,400) (9,100)
Income tax (benefit) 400 (1,000)
----------- -----------
Net investment loss (2,800) (8,100)
----------- -----------
Realized gain from sales of investments 10,300 14,100
Less income tax applicable to
realized gain on investments 800 1,600
----------- -----------
9,500 12,500
----------- -----------
Increase (decrease) in unrealized appreciation
(depreciation) of investments (1,700) 21,800
Income tax (benefit) applicable to increase
(decrease) in unrealized appreciation
(depreciation) of investments (2,300) 2,500
----------- -----------
600 19,300
----------- -----------
Net increase in net assets
resulting from operations $ 7,300 $ 23,700
=========== ===========
Per-share amounts:
Net investment income $ - $ (0.01)
Net realized gains on investments 0.01 0.01
Net unrealized gains on investments - 0.02
----------- -----------
$ 0.01 $ 0.02
=========== ===========
Weighted average number of shares used
in per-share computations 1,265,100 1,265,100
=========== ===========
</TABLE>
Read the accompanying notes.
<PAGE> 5
THE AMERICAS GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<S> <C>
Net investment loss $ (8,100)
Net realized gains from sales
of investments 12,500
Net increase in unrealized appreciation
of investments 19,300
-------------
Increase in net assets 23,700
Net assets at beginning of period 5,154,900
-------------
Net assets at end of period $ 5,178,600
-------------
=============
</TABLE>
Read the accompanying notes.
<PAGE> 6
THE AMERICAS GROWTH FUND, INC.
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<S> <C> <C>
Cash flows from operating activities:
Sources of cash:
Interest $ 24,000
Proceeds from sale of common stock 1,600
-----------
25,600
-----------
Uses of cash:
Payroll 67,900
Consulting fees to affiliate 27,000
Operating expenses 120,300
-----------
215,200
-----------
Cash used in operating activities $ (189,600)
Cash flows from investing activities:
Sources of cash:
Proceeds from sale of U.S. Treasury Bills 6,500,000
Proceeds from sale of common stock 100,000
-----------
6,600,000
-----------
Uses of cash:
Purchase of equipment 3,400
Purchase of note with warrants 50,000
Purchase of U.S. Treasury Bills 6,814,000
Note receivable, related party 22,600
Note receivable, other 50,000
-----------
6,940,000
-----------
Cash used in investing activities (340,000)
-----------
Decrease in cash and cash equivalents (529,600)
Cash and cash equivalents at beginning of period 1,129,900
-----------
Cash and cash equivalents at end of period $ 600,300
===========
</TABLE>
Read the accompanying notes.
<PAGE> 7
THE AMERICAS GROWTH FUND, INC.
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<S> <C> <C>
Reconciliation of net increase in net assets
resulting from operations to cash used in
operating activities:
Net increase in net assets resulting from operations $ 23,700
Adjustments to reconcile net increase in net assets
resulting from operations to cash used in operating
activities:
Accretion of discount on U.S. Treasury Bills $ (189,700)
Allowance for doubtful collections, related party 10,000
Amortization and depreciation 1,900
Unrealized appreciation on investments (21,800)
Realized gain on investments (12,500)
Provision for deferred income taxes, net 3,100
Changes in assets and liabilities:
Prepaid expenses (900)
Interest receivable (2,900)
Accounts payable 100
Accrued payroll taxes (8,900)
Accrued directors fees 8,300
-----------
Total adjustments (213,300)
-----------
Cash used in operating activities $ (189,600)
===========
</TABLE>
Read the accompanying notes.
<PAGE> 8
THE AMERICAS GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
1. ORGANIZATION:
The Americas Growth Fund, Inc. (the "Company") was incorporated under
the laws of the State of Maryland on June 3, 1994. The Company is a
nondiversified, closed-end management investment company and has filed
with the Securities and Exchange Commission ("SEC") a notification of
election to be treated as a "business development company" as that
term is defined in the Investment Company Act of 1940, as amended.
2. SIGNIFICANT ACCOUNTING POLICIES:
UNCONSOLIDATED SUBSIDIARIES:
The Company has a majority owned subsidiary, Americas Growth
Partners, Inc. which is neither an investment company nor a business
development company. Accordingly, the accounts of such subsidiary
are not included with those of the Company.
SECURITIES VALUATION:
Investments in unrestricted securities that are traded in the
over-the-counter market are generally valued at the closing bid
price on the last day of the period. Restricted securities are
valued at fair value as determined by the Board of Directors.
CASH AND CASH EQUIVALENTS:
For purposes of the financial statements, the Company considers all
highly liquid investments purchased with original maturities of
three months or less to be cash equivalents.
FURNITURE AND EQUIPMENT:
Furniture and equipment are stated at cost less accumulated
depreciation. Depreciation is computed using the straight-line
method over the estimated useful lives of the related assets.
ORGANIZATIONAL COSTS:
Organizational costs are stated net of accumulated amortization and
are being amortized using the straight-line method over five years.
INCOME TAXES:
The Company is not entitled to the special treatment available to
regulated investment companies and is taxed as a regular corporation
for federal and state income tax purposes. The aggregate cost of
securities at September 30, 1995 for federal income tax purposes and
financial reporting purposes was the same.
PER SHARE AMOUNTS:
Per share amounts are computed by dividing the net investment income
(loss) and net realized and unrealized gains (losses) on investments
by the weighted average number of shares outstanding throughout the
year.
<PAGE> 9
THE AMERICAS GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
3. CONCENTRATION OF CREDIT RISK:
Financial instruments that potentially subject the Company to
concentration of credit risk consist principally of cash and cash
equivalents. During the year the Company had deposits with financial
institutions which exceed the $100,000 limit covered by the Federal
Deposit Insurance Corporation. Management regularly monitors their
balances and attempts to keep this potential risk to a minimum by
maintaining their accounts with financial institutions they believe
are of good quality.
4. INITIAL PUBLIC OFFERING:
On August 30, 1994, in connection with the Registration Statement on
Form N-2 which became effective with the Securities and Exchange
Commission on August 19, 1994, the Company completed its initial
public offering of 1,100,000 shares of common stock at $5 per share
resulting in net proceeds before issuance costs to the Company of
approximately $4,785,000.
On September 21, 1994, the underwriters of the Company's initial
public offering exercised their overallotment option to purchase
165,000 shares of common stock at $5 per share resulting in additional
net proceeds before issuance costs to the Company of approximately
$717,800.
5. INVESTMENTS:
<TABLE>
<CAPTION>
VALUE
PRINCIPAL SEPTEMBER 30,
AMOUNT TYPE OF ISSUE AND NAME OF ISSUER 1995
------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY BILLS (85.7% OF NET ASSETS
AT SEPTEMBER 30, 1995)
$1,415,780 U.S. Treasury bill, $1,500,000 face value,
matures February 8, 1996 $ 1,470,700
$1,974,605 U.S. Treasury bill, $2,000,000 face value,
matures December 7, 1995 1,979,600
$ 493,755 U.S. Treasury bill, $500,000 face value,
matures November 30, 1995 495,400
$ 471,030 U.S. Treasury bill, $500,000 face value,
matures January 11, 1996 492,300
-------------
Total U.S. Treasury Bills $ 4,438,000
=============
</TABLE>
<PAGE> 10
THE AMERICAS GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
5. INVESTMENTS (CONTINUED):
<TABLE>
<CAPTION>
NUMBER OF
WARRANTS VALUE
SEPTEMBER 30, SEPTEMBER 30,
1995 TYPE OF ISSUE AND NAME OF ISSUER 1995
----------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK WARRANTS (0.5% OF NET ASSETS
AT SEPTEMBER 30, 1995):
Restricted:
1 Greg Manning Auctions, Inc. $ 26,700
Golf Reservations of America, Inc.
2 Class A -
2 Class B -
-------------
Total warrants $ 26,700
=============
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
OF NOTES VALUE
SEPTEMBER 30, SEPTEMBER 30,
1995 TYPE OF ISSUE AND NAME OF ISSUER 1995
--------------------------------------------------------------------------------------------
<S> <C> <C>
NOTES (1.9% OF NET ASSETS AT SEPTEMBER 30, 1995):
$ 50,000 Golf Reservations of America, Inc. $ 50,000
$ 50,000 Approved Financial Corporation 50,000
-------------
Total notes $ 100,000
=============
</TABLE>
<PAGE> 11
THE AMERICAS GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
5. INVESTMENTS (CONTINUED):
In November 1994, the Company purchased in a private placement for an
aggregate consideration of $100,000, 50,000 shares of Greg Manning
Auctions, Inc. ("Manning") restricted common stock and a warrant
entitling the holder to purchase 50,000 shares of Manning restricted
common stock at $1.55 per share through November 3, 1995. The Company
received certain registration rights with respect to the common stock
and the common stock underlying the warrant. The stock was sold in
March.
The Company agreed to loan up to $200,000 to Golf Reservations of
America, Inc. ("Golf") pursuant to two 10% promissory notes. As of
September 30, 1995, the balance was $50,000. In connection with the
notes, the Company received warrants to purchase 80,000 shares of
Golf's common stock at an exercise price of $2.60 per share.
On July 6, 1995, the Company entered in to a joint venture agreement
to market commercial loans to businesses that derive, or are in a
position to derive, a substantial portion of their revenue from the
Caribbean or Latin America. The loans are to be secured by qualified
first or second mortgages. On August 1, 1995, the Company provided a
$200,000 credit facility bearing interest at prime. As of September
30, 1995, $50,000 has been utilized. The Company advanced an
additional $50,000 on the facility during October, 1995. In
consideration for providing the credit facility and for its management
consulting services, the Company will receive a twenty-five percent
(25%) interest in the joint venture's revenue received from points on
applicable loans and an option to purchase twenty five percent (25%)
of the joint venture for $200,000.
6. CASH AND CASH EQUIVALENTS:
<TABLE>
<CAPTION>
NUMBER OF COST AND
SHARES VALUE
SEPTEMBER 30, SEPTEMBER 30,
1995 TYPE OF ISSUE AND NAME OF ISSUER 1995
-------------------------------------------------------------------------------------------
<S> <C> <C>
CASH AND CASH EQUIVALENTS (11.6% OF
NET ASSETS AT SEPTEMBER 30, 1995):
487,400 Money market fund, Cortland Trust, Inc. $ 487,400
102,800 Money market fund, Smith Barney 102,800
- Checking account with bank 10,100
-------------
Total cash and cash equivalents $ 600,300
=============
</TABLE>
<PAGE> 12
THE AMERICAS GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
7. FURNITURE AND EQUIPMENT:
Furniture and equipment are comprised of the following at September
30, 1995:
<TABLE>
<S> <C>
Furniture and fixtures $ 1,500
Computer equipment 10,200
---------
11,700
Less accumulated depreciation 900
---------
$ 10,800
=========
</TABLE>
8. INCOME TAXES:
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax
purposes. The deferred tax liability is the result of an unrealized
appreciation on investments and using accelerated depreciation methods
for income tax purposes.
The significant components of deferred tax assets and liabilities on
the balance sheet at September 30, 1995 are:
<TABLE>
<S> <C>
Deferred tax asset:
Allowance for doubtful collection $ 2,000
Section 179 expense carryover 100
---------
2,100
---------
Deferred tax liability:
Unrealized appreciation
on investments 3,800
Depreciation 1,600
---------
5,400
---------
Net deferred tax liability $ (3,300)
=========
</TABLE>
<PAGE> 13
THE AMERICAS GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
8. INCOME TAXES (CONTINUED):
Significant components of the provision for income taxes attributable
to continuing operations in 1995 are as follows:
<TABLE>
<S> <C>
Current:
Federal $ -
State -
---------
-
---------
Deferred:
Federal 2,700
State 400
---------
3,100
---------
Provision for income taxes $ 3,100
=========
</TABLE>
9. COMMITMENT:
The Company leases its office space pursuant to a noncancelable
operating lease expiring in September, 1995. Rent expense for the
period ended September 30, 1995 amounted to approximately $14,800.
10. TRANSACTIONS WITH RELATED PARTIES:
The Company entered into an employment agreement with the president of
the Company. The agreement is for three years expiring in July, 1997.
Compensation is $90,000 per year with cost of living increases each
year. The Company paid the president $67,900 pursuant to this
agreement during the nine months ended September 30, 1995.
The Company advanced funds to Americas Growth Partners, Inc. The
balance due at September 30, 1995 is approximately $22,600 less an
allowance for doubtful collections of $10,000. The note has ten (10%)
percent interest and is payable March, 1997. The Americas Growth
Partners, Inc. is an immaterial unconsolidated eighty (80%) percent
owned subsidiary.
11. PROFIT SHARING PLAN:
The Company provides an employee profit sharing plan which provides
for a performance fee equal to twenty percent (20%) of net income.
For the period from inception (June 3, 1994) through September 30,
1995, no fees were accrued or paid.
<PAGE> 14
PART I - FINANCIAL INFORMATION (CONTINUED)
Item 2. Management's Discussion and Analysis of
Results of Operations, Liquidity
RESULTS OF OPERATIONS
Three Months Ended September 30, 1995
As a result of operations, net assets increased approximately $7,300
(or approximately .1% of net assets) during the quarter ended September 30,
1995. The Company was inactive, except for matters relating to its
organization and registration under the 1940 Act, for the period from inception
(June 3, 1994) through August 30, 1994. The net increase in net assets
resulting from operations for the quarter ended September 30, 1995 primarily
resulted from an increase in realized gain from sales of investments of $9,500.
The Company recognized investment income (which consisted entirely of
interest income) of approximately $73,800 for the quarter ended September 30,
1995.
Expenses aggregated approximately $76,200 during the three months
ended September 30, 1995 which included salaries, accounting fees, consulting
fees, legal fees, rent and administrative expenses.
Nine months Ended September 30, 1995
As a result of operations, net assets increased approximately $23,700
(or approximately .5% of net assets) during the nine months ended September 30,
1995. The Company was inactive, except for matters relating to its
organization and registration under the 1940 Act, for the period from inception
(June 3, 1994) through August 30, 1994. The net increase in net assets
resulting from operations for the nine months ended September 30, 1995
primarily resulted from an increase in unrealized appreciation of investments
of $19,300 and a realized gain from sales of investments of $12,500.
The Company recognized investment income (which consisted entirely of
interest income) of approximately $216,600 for the nine months ended September
30, 1995.
Expenses aggregated approximately $225,700 during the nine months
ended September 30, 1995 which included salaries, accounting fees, consulting
fees, legal fees, rent and administrative expenses.
<PAGE> 15
PART I - FINANCIAL INFORMATION (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1995, the Company had cash and cash equivalents of
approximately $600,300 and U.S. Treasury Bills of approximately $4,438,000.
The increase in capital resources of approximately $5,038,300 was primarily due
to the closing of the Company's initial public offering on August 30, 1994 and
the exercise of the underwriter's overallotment option on September 21, 1994
providing net proceeds to the Company of approximately $4,785,000 and $717,800,
respectively, before deducting other offering costs of $349,300. The increase
in capital resources for the nine months ended September 30, 1995 was primarily
due to realized gains of $12,500. As of September 30, 1995, the Company had
liabilities of approximately $23,600.
<PAGE> 16
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
The Company is not a party to any material pending legal proceedings.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted to a vote of security holders during the quarter
covered by this report.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 27 - Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K
None
<PAGE> 17
SIGNATURE
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.
THE AMERICAS GROWTH FUND, INC.
By: Leonard J. Sokolow
--------------------------------------
Leonard J. Sokolow,
Chairman of the Board, President and
Chief Financial Officer
(Principal Executive, Financial and
Accounting Officer)
Date: November 6, 1995
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF THE AMERICAS GROWTH FUND, INC. FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 4,516,500
<INVESTMENTS-AT-VALUE> 4,564,700
<RECEIVABLES> 15,500
<ASSETS-OTHER> 622,000
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,202,200
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23,600
<TOTAL-LIABILITIES> 23,600
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,141,300
<SHARES-COMMON-STOCK> 1,265,100
<SHARES-COMMON-PRIOR> 1,265,100
<ACCUMULATED-NII-CURRENT> (2,100)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,500
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14,200
<NET-ASSETS> 5,178,600
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 216,600
<OTHER-INCOME> 0
<EXPENSES-NET> 225,700
<NET-INVESTMENT-INCOME> (8,100)
<REALIZED-GAINS-CURRENT> 12,500
<APPREC-INCREASE-CURRENT> 19,300
<NET-CHANGE-FROM-OPS> 23,700
<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> 0
<NET-CHANGE-IN-ASSETS> 23,700
<ACCUMULATED-NII-PRIOR> 900
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 27,000
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 225,700
<AVERAGE-NET-ASSETS> 5,166,750
<PER-SHARE-NAV-BEGIN> 4.07
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> .03
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 4.09
<EXPENSE-RATIO> 4.4
<AVG-DEBT-OUTSTANDING> 21,700
<AVG-DEBT-PER-SHARE> .02
</TABLE>
