<PAGE> 1
CRANBROOK FUNDS
CONSISTING OF THE
CRANBROOK MONEY MARKET FUND
AND
CRANBROOK TREASURY FUND
-----------------------
ANNUAL REPORT TO SHAREHOLDERS
OCTOBER 31, 1995
-----------------------
INVESTMENT ADVISOR AND PORTFOLIO
MANAGER:
Cranbrook Capital Management, Inc.
CRANBROOK CAPITAL MANAGEMENT LOGO
-----------------------
ADMINISTRATOR, UNDERWRITER AND
DISTRIBUTOR:
FIRST OF MICHIGAN LOGO
-----------------------
CUSTODIAN:
NBD BANK LOGO
NBD Bank
Detroit, Michigan 48226
-----------------------
Principal Office of the Trust:
100 Renaissance Center/25th Floor
Detroit, Michigan 48243
-----------------------
This report is not to be distributed unless
preceded or accompanied by a prospectus.
-----------------------
Phone Number of the Trust (313) 259-4321
24 Hour Yield Information (800) 482-2417
Outside of Michigan (800) 521-1098
Purchase and Redemption Orders:
Outside of Michigan (800) 521-1264
Within Michigan (800) 482-2560
Dear Shareholder,
We are pleased to present this
annual report of the Cranbrook
Funds as of October 31, 1995.
As of October 31, 1995, the
Cranbrook Money Market Fund had
net assets of approximately $413
million; a 19% increase since
March 1, 1995 (date of
inception). In addition, the
Cranbrook Treasury Fund had net
assets of approximately $58
million as of October 31, 1995,
which is an increase of 23% since
March 1, 1995 (date of
inception).
For the eight months ended
October 31, 1995, the Money
Market Fund had a net annualized
yield of 5.36% and the Treasury
Fund had a net annualized yield
of 5.20%.
We thank you for your continued
confidence in the Cranbrook Funds
and we hope you are pleased with
the investment results.
CONRAD W. KOSKI
President
December 20, 1995
<PAGE> 2
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost
(Notes 2 and 4):
Repurchase agreements................... $ 73,845,000
Other (cost $336,920,285)............... 337,571,672
------------
Total investments..................... $411,416,672
Cash...................................... 5,672
Interest receivable....................... 1,884,118
Prepaid expenses.......................... 34,852
------------
Total assets $413,341,314
------------
LIABILITIES (NOTE 3):
Accrued administrator fee................. $ 85,877
Accrued investment advisor fee............ 77,289
Accrued transfer and dividend disbursing
fees.................................... 28,704
Accounts payable and accrued expenses..... 38,081
Dividends payable......................... 292,888
------------
Total liabilities..................... $ 522,839
------------
Total net assets...................... $412,818,475
===========
NET ASSETS:
Shares of beneficial interest, an
unlimited number of shares authorized,
412,818,475 shares outstanding, par
value $.10 per share.................... $ 41,281,848
Additional paid-in capital................ 371,536,627
------------
Total net assets...................... $412,818,475
===========
NET ASSET VALUE:
Offering and redemption price per share on
412,818,475 shares of beneficial
interest outstanding.................... $1.00
===========
</TABLE>
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE EIGHT MONTHS ENDED OCTOBER 31, 1995
<TABLE>
<S> <C>
TOTAL INVESTMENT INCOME (NOTE 2)............ $15,248,879
-----------
EXPENSES (NOTES 2 AND 3):
Administrator fee........................... $ 634,209
Investment advisor fee...................... 570,788
Transfer and dividend disbursing fees....... 280,035
Custodial fees.............................. 85,412
Insurance................................... 57,842
Postage and printing........................ 29,850
Registration and filing fees................ 28,856
Professional fees........................... 24,376
Other....................................... 28,068
-----------
Total expenses............................ $ 1,739,436
-----------
NET INVESTMENT INCOME....................... $13,509,443
==========
RATIO OF TOTAL EXPENSES TO TOTAL INVESTMENT
INCOME.................................... 11.41%
==========
</TABLE>
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EIGHT MONTHS
ENDED
OCTOBER 31, 1995
-----------------
<S> <C>
FROM OPERATIONS:
Net investment income........................................ $ 13,509,443
Dividends declared (Note 2).................................. (13,509,443)
----------------
Change in net assets from operations....................... $ --
----------------
FROM SHARE TRANSACTIONS (at $1.00 per share):
Proceeds from sale of shares................................. $ 1,133,540,267
Asset value of shares issued in reinvestment of dividends.... 13,312,245
----------------
$ 1,146,852,512
Payments for shares redeemed................................. (734,034,037)
----------------
Change in net assets from share transactions............... $ 412,818,475
----------------
NET CHANGE IN NET ASSETS....................................... $ 412,818,475
NET ASSETS:
Beginning of period.......................................... --
----------------
End of period................................................ $ 412,818,475
================
</TABLE>
See accompanying notes to financial statements.
1
<PAGE> 3
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
SCHEDULE OF INVESTMENTS -- OCTOBER 31, 1995
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST
AMOUNT AGENCIES -- 4.14% (NOTE 2)
- ---------- ------------
<C> <S> <C>
8,050,000 Student Loan Marketing Assoc.,
Floating Rate Note,
6.13%, due 5/1/96..................... $ 8,069,332
3,000,000 Federal Home Loan Mortgage Corp.,
Floating Rate Note,
6.20%, due 6/7/96..................... 3,005,238
5,950,000 Federal Home Loan Mortgage Corp.,
5.80%, due 7/25/96.................... 5,947,911
------------
$ 17,022,481
------------
CERTIFICATES OF DEPOSIT -- 7.29%
5,000,000 National Bank of Detroit,
5.73%, due 11/20/95................... $ 5,000,000
5,000,000 Huntington Bank,
5.80%, due 11/27/95................... 4,999,996
5,000,000 Standard Federal Bank,
6.10%, due 12/6/95.................... 5,000,000
5,000,000 Bayerische Hypotheken Bank,
5.81%, due 1/18/96.................... 5,000,310
5,000,000 Dresdner Bank AG,
7.00%, due 2/5/96..................... 5,000,000
5,000,000 Standard Federal Bank,
6.10%, due 3/12/96.................... 5,000,000
------------
$ 30,000,306
------------
COMMERCIAL PAPER -- 30.77%
5,000,000 International Nederlander Funding
Corp.,
5.75%, due 11/6/95.................... $ 4,996,007
4,100,000 Hyundai Motor Finance Co.,
5.77%, due 11/18/95................... 4,095,400
3,790,000 Franklin Resources Inc.,
5.75%, due 11/10/95................... 3,784,561
5,000,000 Franklin Resources Inc.,
5.75%, due 11/10/95................... 4,992,812
7,500,000 Echlin Inc.,
5.75%, due 11/14/95................... 7,484,427
5,000,000 Explorer Pipeline Inc.,
5.77%, due 11/20/95................... 4,984,774
5,000,000 American Trading & Production Corp.,
5.74%, due 11/21/95................... 4,984,056
6,000,000 Island Finance Norwest,
5.74%, due 11/21/95................... 5,980,867
13,356,000 Allomon Funding Corp.,
5.75%, due 11/27/95................... 13,300,144
5,000,000 National Bank of Canada,
5.71%, due 11/27/95................... 4,979,380
5,000,000 Allomon Funding Corp.,
5.75%, due 12/4/95.................... 4,973,646
4,000,000 Associates Corp. of North America,
5.70%, due 12/4/95.................... 3,979,100
10,000,000 Franklin Resources Inc.,
5.75%, due 12/7/95.................... 9,942,500
5,000,000 Cofco Credit Co.,
5.62%, due 12/11/95................... 4,968,778
8,580,000 Echlin Inc.,
5.72%, due 12/11/95................... 8,525,469
5,000,000 International Nederlander Funding
Corp.,
5.69%, due 12/11/95................... 4,968,389
5,000,000 International Nederlander Funding
Corp.,
5.72%, due 12/15/95................... 4,965,044
5,000,000 Cofco Credit Co.,
5.74%, due 12/18/95................... 4,962,531
5,000,000 National Bank of Canada,
5.70%, due 12/18/95................... 4,962,792
5,000,000 Hanson Finance PLC,
5.63%, due 1/12/96.................... 4,943,700
5,000,000 National Bank of Canada,
5.78%, due 1/22/96.................... 4,934,172
5,000,000 National Bank of Canada,
5.56%, due 3/4/96..................... 4,904,244
------------
$126,612,793
------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 4
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
SCHEDULE OF INVESTMENTS -- OCTOBER 31, 1995
(CONTINUED)
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST
AMOUNT REPURCHASE AGREEMENTS -- 17.95% (NOTE 2)
- ---------- ------------
<C> <S> <C>
13,915,000 First Chicago Capital Corporation,
5.98%, due 11/1/95 (secured by
Transamerica Corporation
commercial paper due 12/8/95, held
at Chemical Bank, NY)............. $ 13,915,000
13,225,000 First Chicago Capital Corporation,
5.98%, due 11/1/95 (secured by
Island Finance commercial paper
due 12/4/95, held at Chemical
Bank, NY)......................... 13,225,000
6,705,000 First Chicago Capital Corporation,
5.98%, due 11/1/95 (secured by
Equitable Resources Inc.
commercial paper due 11/16/95,
held at Chemical Bank, NY)........ 6,705,000
40,000,000 Greenwich Capital Corporation,
5.77%, due 11/2/95 (secured by
various U.S. Government Agency
securities ranging in maturity
from 11/5/95 to 11/5/25 at various
interest rates ranging from 0.00%
to 15.00%, all held at Chemical
Bank, NY)......................... 40,000,000
------------
$ 73,845,000
------------
BANKERS ACCEPTANCES -- 2.88%
6,000,000 First National Bank of Chicago,
5.70%, due 11/27/95............... $ 5,975,300
6,000,000 American Express,
5.61%, due 3/8/96................. 5,880,320
------------
$ 11,855,620
------------
TIME DEPOSITS -- 21.17%
7,500,000 Banc One of Dayton,
5.95%, due 1/2/96................. $ 7,500,000
10,000,000 Bayerische Landesbank,
5.95%, due 1/2/96................. 10,000,000
10,000,000 Morgan Guaranty Trust,
6.07%, due 1/3/96................. 10,000,000
11,500,000 Boatmans Credit Card Bank
of New Mexico,
Floating Rate Note,
5.70%, due 1/26/96................ 11,498,570
10,000,000 Norwest Corp.,
Floating Rate Note,
5.88%, due 5/23/96................ 10,000,000
10,000,000 First Bank System,
Floating Rate Note,
5.88%, due 6/3/96................. 10,000,000
10,000,000 Banc One of Columbus,
6.00%, due 9/12/96................ 10,000,000
8,000,000 Society National Bank of Cleveland,
6.88%, due 10/15/96............... 8,080,838
10,000,000 American Express Centurion Bank,
5.95%, due 10/25/96............... 10,000,000
------------
$ 87,079,408
------------
MEDIUM TERM NOTES -- 15.80%
3,300,000 Ford Motor Credit Co.,
6.13%, due 12/1/95................ $ 3,300,326
5,000,000 General Electric Capital Corp.,
4.40%, due 12/7/95................ 4,992,543
4,000,000 Hanson Overseas,
5.50%, due 1/15/96................ 3,994,950
6,100,000 Anaheim, CA., Credit Suisse,
5.90%, due 2/1/96................. 6,100,000
5,000,000 General Electric Capital Corp.,
6.95%, due 3/1/96................. 5,013,126
5,000,000 Household Finance Corp.,
6.91%, due 3/19/96................ 5,014,126
4,000,000 Sears Euro Accounts,
8.75%, due 4/15/96................ 4,046,634
4,900,000 Dean Witter Discover,
6.26%, due 4/30/96................ 4,900,000
4,000,000 AT&T Capital Corp.,
Floating Rate Note,
5.55%, due 5/24/96................ 3,992,821
10,000,000 Merrill Lynch,
Floating Rate Note,
5.88%, due 7/12/96................ 10,000,000
5,000,000 General Electric Credit Corp.,
5.68%, due 9/12/96................ 4,996,602
3,640,073 Case Equipment Loan Trust,
5.83%, due 9/15/96................ 3,640,073
5,000,000 Dean Witter Discover,
Floating Rate Note,
6.08%, due 11/15/96............... 5,009,863
------------
$ 65,001,064
------------
Total Investments.................. $411,416,672
============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 5
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost
(Notes 2 and 4):
Repurchase agreements.................... $20,626,000
Other (cost $37,016,196)................. 37,292,218
-----------
Total investments...................... $57,918,218
Cash....................................... 1,860
Interest receivable........................ 103,674
Prepaid expenses........................... 14,830
-----------
Total assets........................... $58,038,582
-----------
LIABILITIES (NOTE 3):
Accrued administrator fee.................. $ 12,133
Accrued investment advisor fee............. 10,920
Accrued transfer and dividend disbursing
fees..................................... 1,855
Accounts payable and accrued expenses...... 11,140
Dividends payable.......................... 39,202
-----------
Total liabilities...................... $ 75,250
-----------
Total net assets....................... $57,963,332
==========
NET ASSETS:
Shares of beneficial interest, an unlimited
number of shares authorized, 57,963,332
shares outstanding, par value $.10 per
share.................................... $ 5,796,333
Additional paid-in capital................. 52,166,999
-----------
Total net assets....................... $57,963,332
==========
NET ASSET VALUE:
Offering and redemption price per share on
57,963,332 shares of beneficial interest
outstanding.............................. $1.00
==========
</TABLE>
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
STATEMENT OF OPERATIONS
FOR THE EIGHT MONTHS ENDED OCTOBER 31, 1995
<TABLE>
<S> <C>
TOTAL INVESTMENT INCOME (NOTE 2)............ $2,321,070
----------
EXPENSES (NOTES 2 AND 3):
Administrator fee........................... $ 98,976
Investment advisor fee...................... 89,078
Custodial fees.............................. 63,177
Transfer and dividend disbursing fees....... 17,874
Other....................................... 5,098
----------
Total expenses............................ $ 274,203
----------
NET INVESTMENT INCOME....................... $2,046,867
=========
RATIO OF TOTAL EXPENSES TO TOTAL
INVESTMENT INCOME......................... 11.81%
=========
</TABLE>
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EIGHT MONTHS
ENDED
OCTOBER 31, 1995
----------------
<S> <C>
FROM OPERATIONS:
Net investment income........................................... $ 2,046,867
Dividends declared (Note 2)..................................... (2,046,867)
---------------
Change in net assets from operations.......................... $ --
---------------
FROM SHARE TRANSACTIONS (at $1.00 per share):
Proceeds from sale of shares.................................... $ 178,869,473
Asset value of shares issued in reinvestment of dividends....... 2,041,690
---------------
$ 180,911,163
Payments for shares redeemed.................................... (122,947,831)
---------------
Change in net assets from share transactions.................. $ 57,963,332
---------------
NET CHANGE IN NET ASSETS.......................................... $ 57,963,332
NET ASSETS:
Beginning of period............................................. --
---------------
End of period................................................... $ 57,963,332
===============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 6
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1995
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST
AMOUNT U.S. GOVERNMENT OBLIGATIONS -- 64.39% (NOTE 2)
- ----------- ------------
<C> <S> <C>
10,000,000 U.S. Treasury Bill,
5.07%, due 11/24/95................................................... $ 9,965,724
5,000,000 U.S. Treasury Bill,
5.17%, due 12/14/95................................................... 4,968,526
2,500,000 U.S. Treasury Bill,
5.26%, due 1/4/96..................................................... 2,476,089
5,000,000 U.S. Treasury Note,
4.00%, due 1/31/96.................................................... 4,979,201
5,000,000 U.S. Treasury Bill,
5.30%, due 2/8/96..................................................... 4,926,369
5,000,000 U.S. Treasury Note,
4.63%, due 2/15/96.................................................... 4,984,498
5,000,000 U.S. Treasury Note,
5.50%, due 4/30/96.................................................... 4,991,810
------------
$ 37,292,218
------------
REPURCHASE AGREEMENTS -- 35.61%
5,600,000 Greenich Capital Corp. Tri Party,
5.90%, due 11/1/95 (secured by various U.S. Treasuries ranging in
interest rates from 0.00% to 15.00% with maturities from 11/5/95 to
11/1/25, all held at Chemical Bank, NY)............................... $ 5,600,000
5,600,000 Daiwa Tri Party,
5.875%, due 11/1/95 (secured by various U.S. Treasuries ranging in
interest rates from 0.00% to 15.00% with maturities from 11/5/95 to
11/1/25, all held at Bank of New York)................................ 5,600,000
4,426,000 Merrill Lynch Tri Party,
5.82%, due 11/1/95 (secured by various U.S. Treasuries ranging in
interest rates from 0.00% to 15.00% with maturities from 11/5/95 to
11/1/25, all held at Chemical Bank, NY)............................... 4,426,000
5,000,000 Lehman Brothers Tri Party,
5.85%, due 11/1/95 (secured by GNMA 8.5%, due 3/15/22, held at
Chemical Bank, NY).................................................... 5,000,000
------------
$ 20,626,000
------------
Total Investments...................................................... $ 57,918,218
============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 7
CRANBROOK FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1995
(1) ORGANIZATION
Cranbrook Money Market Fund (the "Money Market Portfolio") and Cranbrook
Treasury Fund (the "Treasury Portfolio") (collectively, the "Portfolios") are
separate series of Cranbrook Funds (the "Fund"), which is an unincorporated
business trust organized under Massachusetts law on November 30, 1994 and which
commenced operations on March 1, 1995. Each Portfolio of the Fund is an
open-end, diversified management investment company and the Fund is registered
with the Securities and Exchange Commission under the Investment Company Act of
1940, as amended (the "1940 Act").
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed
by the Fund.
Investments
Each Fund utilizes the amortized cost method to determine the carrying
value of investment securities. Under this method, investment securities are
valued for both financial reporting and Federal tax purposes at cost and any
discount or premium is amortized from the date of acquisition to maturity. The
use of this method results in a carrying value which approximates market value,
which is determined based upon quoted market prices or dealer quotes.
Investment security purchases and sales are accounted for on a trade date
basis.
The Fund invests in securities subject to repurchase agreements. Such
transactions are entered into only with institutions included on the Federal
Reserve System's list of institutions with whom the Federal Reserve open market
desk conducts business. The investment advisor, Cranbrook Capital Management
Inc. (CCM), acting under the supervision of the Trustees, has established the
following additional policies and procedures relating to the Fund's investments
in securities subject to repurchase agreements: 1) the value of the underlying
collateral is required to equal or exceed 102% of the funds advanced under the
repurchase agreement including accrued interest; 2) collateral is marked to
market daily by CCM to assure its value remains at least equal to 102% of the
repurchase agreement amount; and 3) funds are not disbursed by the Fund or its
agent unless collateral is presented or acknowledged by a Federal Reserve book
entry.
Investment Income
Interest income is recorded daily on the accrual basis adjusted for
amortization of premium and accretion of discount.
Federal Income Taxes
It is the Fund's policy to comply with the requirements of Subchapter M of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its income to its shareholders. Therefore, no Federal income
tax provision is required in the accompanying financial statements.
Shareholder Dividends
On each business day the New York Stock Exchange is open, each Fund's net
investment income is declared at the close of the Exchange as a daily dividend
to shareholders of record prior to such close.
Each Fund calculates its dividends based on its daily net investment
income. For this purpose, the net investment income of a Fund consists of (1)
accrued interest income plus or minus amortized purchase discount or premium,
(2) plus or minus all realized gains and losses on disposition of Fund assets
and (3) minus accrued expenses allocated to that Fund. Expenses of the Fund are
accrued daily.
6
<PAGE> 8
CRANBROOK FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1995
(CONTINUED)
Expenses
Expenses (including management fees -- see Note 3) are charged to income
daily as a percentage of the respective Fund's net assets. The following is a
summary of expense rates in effect during the period:
<TABLE>
<CAPTION>
MONEY MARKET FUND GOVERNMENT FUND
EFFECTIVE DATE ANNUAL RATE ANNUAL RATE
-------------- ------------------ -----------------
<S> <C> <C>
March 1 .655% .675%
June 9 .705% .705%
</TABLE>
The Fund monitors the rate at which expenses are charged to ensure that a
proper amount of expense is charged to income each year. This percentage is
subject to revision if there is a change in the estimate of the future net
assets of the Funds or a change in expectations as to the level of actual
expenses.
(3) TRANSACTIONS WITH AFFILIATES
First of Michigan Corporation (FoM) is the Administrator of the Fund and
underwriter and distributor of its shares. Pursuant to the Administration and
Distribution Agreement dated December 15, 1994, the Fund pays FoM a fee for
services performed and facilities furnished by FoM. Fees are computed daily and
payable monthly at an annual rate of .25% of the Fund's first $500 million of
average net assets; .225% of the next $500 million of average net assets; and
.20% of average net assets in excess of $1 billion.
CCM is the investment advisor and portfolio manager pursuant to the
Advisory Agreement dated December 15, 1994. For such services the Fund pays CCM
a fee, computed daily and payable monthly, at an annual rate of .225% of the
Fund's first $500 million of average net assets; and .20% of average net assets
in excess of $500 million.
Certain states in which shares of the Fund are offered may impose an
expense limitation based upon net assets. CCM and FoM have agreed that they will
each reimburse the Fund in equal amounts such portions of the above fees as may
be required to satisfy any expense limitations imposed. No such reimbursement
was required for the eight months ended October 31, 1995.
Pursuant to the foregoing arrangements, for the eight months ended October
31, 1995, FoM earned $634,209 and $98,976 and CCM earned $570,788 and $89,078 in
fees for the Money Market Fund and the Treasury Fund, respectively, under the
Administration and Distribution Agreement and Advisory Agreement.
FoM was also compensated for its services as the Fund's Transfer and
Dividend Distribution Agent and NBD Bank ("NBD") was compensated for its
services as the Fund's Custodian. FoM and NBD are also reimbursed for certain
out of pocket expenses incurred on behalf of the Fund. For the eight months
ended October 31, 1995, the Money Market Fund and the Treasury Fund incurred
expenses of $367,165 and $81,355, respectively, for the above service fees and
out of pocket expenses of FoM and NBD.
Certain officers and Trustees of the Fund are also officers of FoM.
7
<PAGE> 9
CRANBROOK FUNDS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1995
(CONTINUED)
(4) INVESTMENT SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment securities,
including repurchase agreements, during the period aggregated $10,298,619,167
and $10,228,313,800 respectively, for the Money Market Fund and $3,774,463,022
and $3,764,573,653, respectively, for the Treasury Fund.
------------------------
FINANCIAL HIGHLIGHTS
The financial highlights presents a per share analysis of net investment
income and distributions from net investment income for the Funds. Additional
quantitative measures expressed in ratio form analyze important relationships
between certain items presented in the financial statements. These financial
highlights have been derived from the financial statements of the Funds and
other information for the period presented.
<TABLE>
<CAPTION>
MONEY MARKET FUND
-----------------
EIGHT MONTHS
ENDED
OCTOBER 31, 1995
-----------------
<S> <C>
Net investment income............................................... $ 0.0357
Distributions from net investment income............................ $ (0.0357)
Net Asset Value per share at beginning and end of period............ $ 1.00
Total Return........................................................ 5.37%(a)
Net assets, end of period........................................... $ 412,818,475
Ratios to average net assets:
Net investment income............................................. 5.36%(a)
Expenses.......................................................... 0.69%(a)
</TABLE>
<TABLE>
<CAPTION>
TREASURY FUND
-----------------
EIGHT MONTHS
ENDED
OCTOBER 31, 1995
-----------------
<S> <C>
Net investment income............................................... $ 0.0347
Distributions from net investment income............................ $ (0.0347)
Net Asset Value per share at beginning and end of period............ $ 1.00
Total Return........................................................ 5.20%(a)
Net assets, end of period........................................... $ 57,963,332
Ratios to average net assets:
Net investment income............................................. 5.20%(a)
Expenses.......................................................... 0.70%(a)
</TABLE>
- -------------------------
(a) Annualized for periods less than one year.
8
<PAGE> 10
REPORT OF INDEPENDENT AUDITORS
TO THE TRUSTEES AND SHAREHOLDERS OF CRANBROOK FUNDS
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments of the Cranbrook Funds, comprised of the
Cranbrook Money Market Fund and the Cranbrook Treasury Fund, as of October 31,
1995, and the related statements of operations, the statements of changes in net
assets and the financial highlights for the period presented. 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
October 31, 1995, 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
each of the Funds comprised of the Cranbrook Funds as of October 31, 1995 and
the results of their operations and the changes in their net assets and the
financial highlights for the period referred to above in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Detroit, Michigan,
December 1, 1995
9
<PAGE> 11
LOGO
MEMBERS:
New York Stock Exchange, Inc.
EXECUTIVE OFFICES
DETROIT, MI 48243-1182
100 Renaissance Center/26th Floor
(313) 259-2600
NEW YORK, NY 10005-3794
100 Wall Street/21st Floor
(212) 344-1144
MICHIGAN OFFICES
<TABLE>
<S> <C> <C>
ADRIAN 49221-2703 GRAND BLANC 48439-5058 MT. CLEMENS 48043-8600
123 East Maumee Street 2240 East Hill Road/Suite A 7 North Main Street
(517) 263-8570 (810) 694-2980 Suite 108
(810) 469-4930
ANN ARBOR 48104-2200 GRAND RAPIDS 49503-2373
301 East Liberty Street 300 Ottawa, N.W. PORT HURON 48059-4101
(313) 747-8040 Suite 200 3899 24th Avenue
(616) 774-0141 (810) 987-1500
AUBURN HILLS 48326-2563
2701 University Drive GROSSE POINTE 48230-1559 SAGINAW 48602-3210
Suite 425 16980 Kercheval 3210 Davenport Avenue
(810) 475-1700 (313) 886-1200 (517) 792-2346
BATTLE CREEK 49017-3611 GROSSE POINTE WOODS ST. JOSEPH 49085-1259
29 West Michigan Mall 48236-1821 2900 South State Street
(616) 962-4034 20155 Mack Avenue (616) 983-2587
(313) 884-9600
BAY CITY 48708-5731 SOUTHFIELD 48076-4241
723 Washington Avenue HARBOR SPRINGS 49740-1532 26555 Evergreen Road
(517) 894-5757 115 East Third Street (810) 358-3290
(616) 526-2193
BIRMINGHAM 48009-5301 SOUTHGATE 48195-1300
280 North Woodward HOLLAND 49423-3546 13219 Eureka Road
(810) 647-1400 100 East Eighth Street (313) 285-2000
Suite 280
BLOOMFIELD HILLS 48304-2862 (616) 392-7986 STERLING HEIGHTS 48313-1149
1533 North Woodward 12900 Hall Road/Suite 100
Suite 150 JACKSON 49201-1227 (810) 726-5000
(810) 540-2787 333 Louis Glick Hwy., West
(517) 782-0405 TRAVERSE CITY 49684-5552
COLDWATER 49036-1966 10850 Traverse Highway
150 North Willowbrook Road KALAMAZOO 49007-3923 (616) 947-2200
Suite 300 259 East Michigan Avenue
(517) 278-7189 (616) 382-2600 TROY 48084-3510
1719 West Big Beaver Road
DEARBORN 48124-1979 LAPEER 48446-3810 (810) 643-9100
23400 Michigan Avenue 25 West Nepessing
(313) 277-0300 (810) 664-0050 WEST BLOOMFIELD 48322-2394
6230 Orchard Lake Road
EAST LANSING 48823-2433 MIDLAND 48640-5189 Suite 230
1427 West Saginaw 200 East Main Street (810) 855-2100
(517) 332-8000 (517) 631-0620
FRANKENMUTH 48734-1532
108 West School Street
(517) 652-3251
</TABLE>
Customers of First of Michigan Corporation are protected by an excess
SIPC policy underwritten by the Aetna Casualty and Surety Company. This policy
provides $9.5 million of protection for customers' securities and is in excess
of the $500,000 protection provided by the Securities Investor Protection
Corporation. This affords our clients total coverage of $10 million for their
securities, per account, of which $100,000 in cash coverage is provided by the
Securities Investor Protection Corporation.
LOGO
<PAGE> 12
Exhibit Index
Exhibit Number Description
- -------------- -----------
27.1 Financial Data Schedule
27.2 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<SERIES>
<NUMBER> 1
<NAME> CRANBROOK MONEY MARKET FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> MAR-01-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 410,765,285
<INVESTMENTS-AT-VALUE> 411,416,672
<RECEIVABLES> 1,884,118
<ASSETS-OTHER> 40,524
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 413,341,314
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 522,839
<TOTAL-LIABILITIES> 522,839
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 371,536,627
<SHARES-COMMON-STOCK> 412,818,475
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 412,818,475
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15,248,879
<OTHER-INCOME> 0
<EXPENSES-NET> 1,739,436
<NET-INVESTMENT-INCOME> 13,509,443
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,509,443
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,133,540,267
<NUMBER-OF-SHARES-REDEEMED> 734,034,037
<SHARES-REINVESTED> 13,312,245
<NET-CHANGE-IN-ASSETS> 412,818,475
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 570,788
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,739,436
<AVERAGE-NET-ASSETS> 377,896,627
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 00357
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 00357
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<SERIES>
<NUMBER> 2
<NAME> CRANBROOK TREASURY FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> MAR-01-1995
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 57,642,196
<INVESTMENTS-AT-VALUE> 57,918,218
<RECEIVABLES> 103,674
<ASSETS-OTHER> 16,690
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 58,038,582
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 75,250
<TOTAL-LIABILITIES> 75,250
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,166,999
<SHARES-COMMON-STOCK> 57,963,332
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 57,963,332
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,321,070
<OTHER-INCOME> 0
<EXPENSES-NET> 274,203
<NET-INVESTMENT-INCOME> 2,046,867
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,046,867
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 178,869,473
<NUMBER-OF-SHARES-REDEEMED> 122,947,831
<SHARES-REINVESTED> 2,041,690
<NET-CHANGE-IN-ASSETS> 57,963,332
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 89,078
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 274,203
<AVERAGE-NET-ASSETS> 58,997,349
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 00347
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 00347
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
