CROFT LEOMINSTER INC.
VALUE FUND
SEMI-ANNUAL REPORT
OCTOBER 31, 1998
<PAGE>
December 17, 1998
Dear Shareholder,
From 1/1/98 to 11/30/98, your Croft-Leominster Value Fund has declined
5.4%*.
It has been a challenging market. Investors continue to seek liquidity and
pour money into the largest capitalization stocks which have increased to
historically high valuations. In the current market, this strategy has provided
good returns. However, in the longer run, we believe that many of these
companies will not be able to support the high valuations at which they
currently trade.
The average decline from 52 week highs for stocks in the broad indices has
been significant. As of October 31, 1998, NASDAQ listed stocks were off on
average 43.7%, New York Stock Exchange stocks were off 31.6% and S&P 500 stocks
were off 22.6%. Today, nearly all of the positive performance of the S&P 500 is
attributable to the largest 20 names (30% of the market capitalization). This is
also true for the NASDAQ where the top 9 out of 1400 companies are the most
responsible for positive performance.
This dichotomy, where larger-cap, growth stocks significantly outperform
value stocks, has not occurred since the Bull and Bear markets in the early
1970s. When this reversed, value stocks outperformed growth stocks by an
extremely large margin from 1975-1984.**
The risk vs. return ratio has been too excessive for us to invest in the
largest cap stocks. We do not invest for the short-run. We are committed to the
style of value investing. We will continue to invest for the long run in
companies based on their fundamentals and look for companies selling at
discounts to their inherent values. Over time, a value-oriented strategy has
produced better returns with less downside risk. Unfortunately this year has
been the exception. We continue to adhere to our value style as indicated below:
VALUE FUND S&P 500***
Estimated 1999 Price/Earnings 12.8x 25.2x
Estimated Growth Rate 11.1% 8.0%
Current Price/Book Value 2.4x 4.4x
In this difficult environment, we have taken actions that we feel are
beneficial:
Through tax loss selling, we have eliminated distributions for the 1998
calendar (tax) year. Thus, there will be no income or capital gain taxes for
you, our investors. A distribution will be made in the 1999 calendar (tax) year.
We also took advantage of the late Summer market tumble to increase our
positions in several of our favorite stocks. The Fund's largest holding, SPX
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<PAGE>
Corp., is one such company. We believe this company is misunderstood and
undervalued on Wall Street. It trades at 12.4x 1999 est. earnings per share
which is a significant discount to its peers. The company has a strong
management that is intensely shareholder oriented. In addition, they are in the
process of integrating an acquisition, GSX. With cost savings from the merger
and the value oriented style of management, we believe SPX Corp. is a premier
company. Earnings should grow at a 15% annual rate.
Another example is CBS Corp. Investors have been slow to recognize the
transformation of CBS (Westinghouse) from an industrial company into a media
powerhouse. The stock currently trades at a significant discount to its net
assets value. The recent IPO of its radio and advertising segments should
enhance the valuation placed on the company. We are very impressed with the
actions of the CBS management team.
Going forward, we continue to like the Financial sector (banks, brokers,
insurance and financial services). These came under fire earlier this year due
to global economic concerns and questions about lending practices. Several of
the companies that we own were not immune to this fallout. However, they still
are a very attractive long-term investment. Future industry fundamentals remain
strong. Financial companies feature above average growth potential and are
relatively inexpensive to the overall market.
We have moved some assets into small and mid-capitalization stocks. As a
group, these stocks trade at compelling values. Because of investors' desire for
liquidity, small and mid-cap stocks have been neglected. Our diversification
should protect us from any specific risks associated with investing in these
stocks. We feel it is only a matter of time before investors return to small and
mid-cap stocks.
Croft-Leominster would like to thank you for your confidence and trust in
us during these anxious times. We will continue to stand by our value oriented
convictions.
Sincerely,
Kent G. Croft
* Past performance is not indicative of future performance. Investment return
and principal will fluctuate. An investor's shares, when redeemed, may be
worth more or less than the original value.
** Source: Dreman Value Mgt, L.L.C.
*** The Standard and Poor's 500 (S&P 500), is an unmanaged index that is widely
recognized indicator of the overall market. Comments about the Value Fund
Portfolio and the S&P 500 are as of 12/17/98.
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<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- ------ ------------
<C> <S> <C>
COMMON STOCKS - 94.60%
BANKS, S&L'S AND BROKERS - 18.61%
500 Astoria Financial Corp. .................... $ 21,500
810 Bank One Corp. ............................. 39,589
2,600 Bank United Corp. Cl A ..................... 103,594
2,800 Bay View Capital Corp. ..................... 48,300
1,300 Crestar Financial Corp. .................... 85,637
2,600 Dime Bancorp Inc. Cl B ..................... 61,912
8,600 Hibernia Corp. Cl A ........................ 143,513
3,200 Mellon Bank Corp. .......................... 192,400
600 Mercantile Bankshares Corp. ................ 19,575
400 PNC Bank Corp. ............................. 20,000
2,427 Provident Bankshares Corp. ................. 61,889
2,100 Summit Bancorp ............................. 79,669
4,776 Washington Mutual Inc. ..................... 178,801
----------
1,056,379
----------
BASIC MATERIALS - 0.48%
4,200 National Steel Corp. Cl B .................. 27,037
----------
BUILDING & CONSTRUCTION - 3.93%
6,150 Owens Corning .............................. 223,322
----------
BUSINESS SERVICES AND TRANSPORTATION - 6.54%
5,900 Kansas City Southern Industries Inc. ....... 227,887
3,000 Union Pacific Corp. ........................ 142,875
----------
370,762
----------
CAPITAL EQUIPMENT - 1.19%
700 Xerox Corp. ................................ 67,812
----------
CHEMICALS - 5.51%
2,000 Crompton & Knowles Corp. ................... 32,125
5,600 Geon Co. ................................... 121,450
700+ International Specialty Products Inc. ...... 9,406
4,600 Lyondell Chemical Co. ...................... 77,625
2,900 Morton International Inc. .................. 72,138
----------
312,744
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- ------ ------------
<C> <S> <C>
CLOSED END FUNDS - BRAZIL - 0.16%
18,000 Brazilian Smaller Co. Investment Trust ..... $ 9,000
----------
CLOSED END FUNDS - GERMANY - 0.36%
1,500 Emerging Germany Fund Inc. ................. 20,156
----------
CLOSED END FUNDS - GLOBAL - 0.05%
529 AIM Eastern Europe Fund .................... 3,075
CLOSED END FUNDS - INDIA - 0.36%
534+ India Growth Fund Inc....................... 4,005
1,400+ Jardine Fleming India Fund ................. 7,788
600+ Morgan Stanley India Invt. Fund............. 4,050
700+ The India Fund Inc. ....................... 4,331
----------
20,174
----------
CLOSED END FUNDS - LATIN AMERICA - 0.36%
700 Argentina Fund Inc. ........................ 6,781
400 Latin America Equity Fund .................. 3,075
1,200 Latin America Investment Fund .............. 10,650
----------
20,506
----------
CONSUMER CYCLICALS - 11.57%
5,150 Federal-Mogul Corp. ........................ 279,066
1,500 Koninklijke (Royal) Philips Electronics .... 82,312
5,426 SPX Corp. .................................. 295,380
----------
656,758
----------
CONSUMER NON-DURABLES - 3.50%
1,400 Corn Products International Inc. ........... 39,900
7,000 International Multifoods Corp. ............. 145,687
600 Whitman Corp. .............................. 12,863
----------
198,450
----------
CONSUMER SERVICES - 1.96%
100 Midas Inc. ................................. 2,769
3,958 Viad Corp. ................................. 108,598
----------
111,367
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- ------ ------------
<C> <S> <C>
FINANCIAL SERVICES - 5.40%
1,000 Capital One Financial Corp. ................ $ 101,750
2,650 Citigroup Inc. ............................. 124,716
1,100 DVI Inc. ................................... 17,188
3,000 Waddell & Reed Financial Inc. Cl A ......... 62,812
----------
306,466
----------
HEALTHCARE - 0.51%
2,000+ Quorum Health Group Inc..................... 29,000
----------
INSURANCE - 5.30%
3,300 Ace Ltd. ................................... 111,788
900 Conseco Inc. ............................... 31,219
1,200 Hartford Financial Services Group Inc. .... 63,750
1,400+ Highlands Insurance Group Inc. ............. 14,525
3,500 TIG Holdings Inc............................ 48,781
700 Torchmark Corp. ............................ 30,625
----------
300,688
----------
MEDIA & ENTERTAINMENT - 4.70%
3,500+ Big City Radio Inc.......................... 17,062
8,400 CBS Inc. ................................... 234,675
825+ Westwood One Inc. .......................... 14,850
----------
266,587
----------
MULTI-INDUSTRY - 0.35%
1,200+ Alpine Group Inc. ......................... 20,250
----------
NATURAL GAS - 5.71%
8,000+ Bellwether Exploration Co................... 55,000
12,200+ Comstock Resources Inc...................... 60,238
34,500+ Gothic Energy Corp. ........................ 20,484
1,300+ Mallon Resources Corp....................... 10,725
29,708+ Meridian Resources Corp..................... 124,402
24,200+ Panaco Inc. ................................ 43,863
1,600+ Titan Exploration Inc. ..................... 9,400
----------
324,112
----------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-6-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- ------ ------------
<C> <S> <C>
OIL - 2.30%
39,300+ Equity Oil Co. ............................. $ 71,231
6,000+ Santa Fe Energy Resources Inc. ............. 48,750
2,100 Wiser Oil................................... 10,500
---------
130,481
---------
PAPER & FOREST PRODUCTS - 5.45%
6,300 Boise Cascade Corp.......................... 176,400
13,900+ Stone Container Corp. ...................... 132,919
---------
309,319
---------
PHARMACEUTICALS - 2.17%
1,400 American Home Products Corp. ............... 68,250
700 Warner Lambert Co. ......................... 54,863
---------
123,113
---------
POLLUTION CONTROL - 1.79%
17,600+ Infinity Corp. ............................. 19,250
3,900+ U.S. Filter Corp. .......................... 82,631
---------
101,881
---------
REAL ESTATE INVESTMENT TRUSTS - 0.23%
459 Starwood Hotels & Resorts Trust ............ 12,995
---------
TECHNOLOGY - 1.71%
4,300+ Advanced Micro Devices Inc. ............... 97,019
---------
TELEPHONE & CELLULAR - 4.40%
2,700+ MCI Worldcom Inc. .......................... 149,175
2,565+ Qwest Communications International Inc. .... 100,356
---------
249,531
---------
TOTAL COMMON STOCK
(Cost $5,311,765).................................... 5,368,984
---------
MUTUAL FUNDS - 0.02%
147+ Schroder All Asia (Cost $1,629)............. 1,016
---------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-7-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- ------ ------------
<C> <S> <C>
SHORT TERM INVESTMENTS - 4.62%
100,000 General Electric Capital Corp., 5.08%, due 11/16/98 $ 100,000
162,123 Star Treasury Fund (Cost $162,123) ......... 162,123
---------
262,123
---------
TOTAL INVESTMENTS
(Cost $5,575,518).......................... 99.24% 5,632,123
Other assets in excess of liabilities............... 0.76% 43,407
------- ---------
TOTAL NET ASSETS 100.00% $5,675,530
======= ==========
<FN>
(1) Federal Tax Information: At October 31, 1998 the net unrealized appreciation
based on cost for Federal Income tax purposes of $5,575,518 was as follows:
Aggregate gross unrealized appreciation for all investments for
which there was an excess of value over cost........ $ 669,146
Aggregate gross unrealized depreciation for all investments for
which there was an excess of cost over value........ (612,541)
----------
Net unrealized appreciation............................... $ 56,605
==========
+ Non-income producing security
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-8-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
ASSETS:
<S> <C>
Investments in securities, at value
(cost $5,575,518) (Note 2) .............................. $ 5,632,123
Receivable for securities sold .................................. 37,863
Dividends and interest receivable ............................... 6,276
Due from advisor (Note 3) ....................................... 993
Other assets .................................................... 2,940
-----------
Total Assets ............................................ 5,680,195
-----------
LIABILITIES:
Payables:
For redemptions ...........................$ 3,941
Accrued expenses .......................... 724
-----------
Total Liabilities ....................................... 4,665
-----------
Net Assets .............................................. $ 5,675,530
===========
NET ASSETS CONSIST OF:
Additional paid in capital .............................. $ 5,949,899
Accumulated net investment loss ......................... (9,078)
Accumulated net realized loss from
investment transactions ................................. (321,896)
Net unrealized appreciation on
investments ..................................... 56,605
-----------
Net Assets .............................................. $ 5,675,530
===========
Net asset value and redemption price per share
($5,675,530/419,374 shares of capital stock outstanding)
(Note 4) ........................................................ $ 13.53
===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-9-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
STATEMENT OF OPERATIONS
For the six months ended October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
INVESTMENT INCOME:
<S> <C>
Dividends .................................................... $ 28,179
Interest ..................................................... 7,651
-----------
35,830
Expenses:
Investment advisory fee (Note 3) ............................. 26,624
Administration fee ........................................... 9,799
Legal fee .................................................... 7,804
Transfer agent fee ........................................... 6,354
Audit fee .................................................... 3,425
Insurance .................................................... 3,150
Custody fee .................................................. 2,944
Distribution fee (Note 3) .................................... 2,833
Printing ..................................................... 1,915
Registration ................................................. 1,260
Trustee fee .................................................. 252
Other ........................................................ 465
-----------
Total expenses ....................................... 66,825
Less: Expense reimbursement ......................... (24,339)
-----------
Net expenses ......................................... 42,486
-----------
Net investment income (loss) ......................... (6,656)
-----------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS (Note 2)
Net realized loss from investment transactions ............... (427,598)
Net change in unrealized appreciation of investments ......... (912,418)
-----------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS .............. (1,340,016)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ......... $(1,346,672)
===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-10-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the six months For the year
ended ended
October 31, 1998 April 30, 1998
---------------- --------------
(Unaudited)
<S> <C> <C>
Net investment income (loss) ........................ $ (6,656) $ 175
Net realized gain (loss) from investment transactions (427,598) 393,287
Net change in unrealized appreciation of investments (912,418) 773,296
----------- ----------
Net increase (decrease) in net assets resulting
from operations ..................................... (1,346,672) 1,166,758
Distributions from net investment income ............ 0 0
Distributions from net gain on investments .......... 0 (414,496)
Net capital share transactions (Note 4) ............. 1,758,965 2,446,934
----------- ----------
Net increase in net assets .......................... 412,293 3,199,196
NET ASSETS:
Beginning of period ................................. 5,263,237 2,064,041
----------- ----------
End of period (including undistributed net investment
income of $0 and $175, respectively) ................ $ 5,675,530 $ 5,263,237
=========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-11-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
The Croft-Leominster Value Fund (the "Fund"), is a managed portfolio of the
Croft Funds Corporation, is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management company. The Fund is one of a
series of Funds of the Croft Funds Corporation, which also includes the
Croft-Leominster Income Fund. The Fund's investment objective is to seek growth
of capital. It invest primarily (under normal market conditions, at least 65% of
its total assets) in common stocks which are believed by the Adviser to be
undervalued and have good prospects for capital appreciation.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
SECURITY VALUATION - Securities which are traded on any exchange or on the
NASDAQ over-the-counter market are valued at the last quoted sale price.
Investments for which no sale is reported are valued at the last bid price.
FEDERAL INCOME TAXES - The Fund intends to comply with requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its net investment income as dividends to its
shareholders. The Fund intends to distribute its net long-term capital gains and
its net short-term capital gains at least once a year. Therefore no provision
for income taxes is required.
OTHER - The Fund follows industry practice and records security
transactions on the trade date. The specific identification method is used for
determining gains or losses for financial statement and income tax purposes.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on an accrual basis.
ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 3. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Croft-Leominster Inc. (the "Adviser") as its investment
adviser. Under the terms of the management agreement, the Adviser receives a
fee, computed daily and payable monthly at the annual rate of .94% of the Fund's
average daily net asset value. Until December 31, 2001, the Adviser guarantees
that the overall expense ratio for the Fund, which exclude ordinary brokerage
commission incurred in the purchase or sale of portfolio securities, will not
exceed 1.50%. As a result, for the six months ended October 31, 1998, the
Adviser accrued reimbursements to the Fund of $24,339.
-12-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
(Unaudited)
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
(CONTINUED)
Pursuant to a plan of Distribution the Fund pays a distribution fee of up
to .25% of the average daily net assets to broker-dealers for distribution
assistance, and to financial institutions and intermediaries such as banks,
savings and loan associations, insurance companies and investment counselors as
compensation for services rendered or expenses incurred in connection with
distribution assistance. For the six months ended October 31, 1998 the Fund
accrued distribution fees of $2,833.
NOTE 4. CAPITAL SHARE TRANSACTIONS
At October 31, 1998 there was 30,000,000, $0.001 par value shares of
capital stock authorized for the Croft Funds Corporation, and capital paid-in
amounted to $5,949,899 for the Fund.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
For the six months For the year
ended ended
October 31, 1998 April 30, 1998
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold .................... 119,911 $ 1,887,128 131,285 $ 2,117,741
Shares issued in reinvestment of
dividends .............. 0 0 26,843 399,689
Shares redeemed ................ (9,511) (128,163) (4,150) (70,496)
------- ----------- ------- -----------
Net increase ................... 110,400 $ 1,758,965 153,978 $ 2,446,934
======= =========== ======= ===========
</TABLE>
NOTE 5. INVESTMENT TRANSACTIONS
Purchases and sales, excluding short term securities, for the six months
ended October 31, 1998 aggregated $2,794,443, and $1,076,770, respectively for
the Fund.
NOTE 6. DISTRIBUTIONS TO SHAREHOLDERS
During the six month period ended October 31, 1998, no distributions were
declared.
NOTE 7. FINANCIAL INSTRUMENT DISCLOSURE
There are no reportable financial instruments that have any off balance
sheet risk as of October 31, 1998.
-13-
<PAGE>
CROFT FUNDS CORPORATION
CROFT-LEOMINSTER VALUE FUND
FINANCIAL HIGHLIGHTS
(For a fund share outstanding throughout each period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the
six months
ended For the For the May 4, 1995
October 31, year ended year ended through
1998 April 30, April 30, April 30,
(Unaudited) 1998 1997 1996*
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 17.03 $ 13.32 $ 11.74 $ 10.00
Income (loss) from investment operations
Net investment income .......................... (0.02) 0.00 0.04 0.10
Net realized and unrealized gain on
investments ............................ (3.48) 5.49 2.11 1.75
Total from investment operations ............... (3.50) 5.49 2.15 1.85
Less distributions
Dividends from net investment income ........... 0.00 0.00 (0.05) (0.07)
Distribution from realized gains from security
transactions ........................... 0.00 (1.78) (0.52) (0.04)
Total distributions ............................ 0.00 (1.78) (0.57) (0.11)
Net asset value, end of period ................. $ 13.53 $ 17.03 $ 13.32 $ 11.74
Total return** ................................. (20.55%) 43.14% 18.71% 18.57%
Ratios/supplemental data
Net assets end of period (in 000's) ............ 5,676 5,263 2,064 1,255
Ratio of expenses to average net assets
before reimbursement ................... 2.36%^ 2.75% 5.40% 1.50%^
Ratio of expenses to average net assets
after reimbursement .................... 1.50%^ 1.50% 1.50% 1.50%^
Ratio of net investment income (loss) to average
net assets ............................. (0.23%)^ 0.00% 0.34% 0.89%^
Portfolio turnover rate ........................ 20.17% 80.98% 105.72% 65.38%
<FN>
- ---------------
* Commencement of operations
** Based on net asset value per share
+ Disclosure of this rate is required by the SEC on a prospective basis
beginning with the Fund's 1996 fiscal year end.
^ Annualized
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
-14-
<PAGE>
CROFT LEOMINSTER INC.
VALUE FUND
1-800-746-3322
