<PAGE> 1
CRANBROOK FUNDS
CONSISTING OF THE
CRANBROOK MONEY MARKET FUND
AND
CRANBROOK TREASURY FUND
------------------------
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1996
------------------------
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
April 30, 1996, semi-annual
report of the Cranbrook Funds.
As of April 30, 1996, the
Cranbrook Money Market Fund had
net assets of approximately $430
million and the Cranbrook
Treasury Fund had net assets of
over $57 million.
For the six months ended April
30, 1996, the Money Market Fund
had a net annualized yield of
4.95% and the Treasury Fund had a
net annualized yield of 4.74%.
Thank you for your continued
confidence in the Cranbrook Funds
and we hope you are pleased with
the investment results.
/s/ CONRAD W. KOSKI
CONRAD W. KOSKI
President
June 17, 1996
<PAGE> 2
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost
(Notes 2 and 4):
Repurchase agreements................... $ 32,706,000
Other................................... 395,880,983
------------
Total investments..................... $428,586,983
Interest receivable....................... 1,514,768
Prepaid expenses.......................... 75,745
------------
Total assets $430,177,496
------------
LIABILITIES (NOTE 3):
Accrued administrator fee................. $ 89,948
Accrued investment advisor fee............ 80,950
Accrued transfer and dividend disbursing
fees.................................... 31,879
Accounts payable and accrued expenses..... 28,732
Dividends payable......................... 282,170
------------
Total liabilities..................... $ 513,679
------------
Total net assets...................... $429,663,817
============
NET ASSETS:
Shares of beneficial interest, an
unlimited number of shares authorized,
429,663,817 shares outstanding, par
value $.10 per share.................... $ 42,966,382
Additional paid-in capital................ 386,697,435
------------
Total net assets...................... $429,663,817
============
NET ASSET VALUE:
Offering and redemption price per share on
429,663,817 shares of beneficial
interest outstanding.................... $1.00
============
</TABLE>
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
TOTAL INVESTMENT INCOME (NOTE 2)............ $12,060,294
-----------
EXPENSES (NOTES 2 AND 3):
Administrator fee........................... $ 532,478
Investment advisor fee...................... 479,221
Transfer and dividend disbursing fees....... 225,786
Custodial fees.............................. 84,383
Professional fees........................... 43,081
Postage and printing........................ 34,806
Insurance................................... 29,476
Registration and filing fees................ 17,024
Other....................................... 21,014
-----------
Total expenses............................ $ 1,467,269
-----------
NET INVESTMENT INCOME....................... $10,593,025
===========
RATIO OF TOTAL EXPENSES TO TOTAL INVESTMENT
INCOME.................................... 12.17%
===========
</TABLE>
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1996
(UNAUDITED)
-----------------
<S> <C>
FROM OPERATIONS:
Net investment income............................................... $ 10,593,025
Dividends declared (Note 2)......................................... (10,593,025)
-------------
Change in net assets from operations.............................. $ --
-------------
FROM SHARE TRANSACTIONS (at $1.00 per share):
Proceeds from sale of shares........................................ $ 679,067,771
Asset value of shares issued in reinvestment of dividends........... 10,505,790
-------------
$ 689,573,561
Payments for shares redeemed........................................ (672,728,219)
-------------
Change in net assets from share transactions...................... $ 16,845,342
-------------
NET CHANGE IN NET ASSETS.............................................. $ 16,845,342
NET ASSETS:
Beginning of period................................................. 412,818,475
-------------
End of period....................................................... $ 429,663,817
=============
</TABLE>
See accompanying notes to financial statements.
1
<PAGE> 3
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND
SCHEDULE OF INVESTMENTS -- APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST
AMOUNT AGENCIES -- 5.73% (NOTE 2)
- ---------- ------------
<C> <S> <C>
8,050,000 Student Loan Marketing Assoc.,
Floating Rate Note,
5.85%, due 5/1/96................. $ 8,050,000
3,000,000 Federal Home Loan Mortgage Corp.,
Floating Rate Note,
5.795%, due 6/7/96................ 3,000,885
5,000,000 Federal National Mortgage Assoc.,
Medium Term Note,
5.50%, due 6/12/96................ 5,000,802
4,992,691 Small Business Administration,
Variable Rate Note,
6.00%, due 1/25/21................ 4,999,693
3,484,459 Small Business Administration,
Variable Rate Note,
6.00%, due 1/25/21................ 3,490,791
------------
$ 24,542,171
------------
CERTIFICATES OF DEPOSIT -- 5.83%
5,000,000 Bayerische Hypotheken Und
Landesbank,
5.18%, due 5/3/96................. $ 4,999,988
5,000,000 Rabo (Ned),
5.34%, due 8/2/96................. 4,999,421
10,000,000 Standard Federal Bank,
5.70%, due 9/4/96................. 10,000,000
5,000,000 Standard Federal Bank,
5.75%, due 12/5/96................ 5,000,000
------------
$ 24,999,409
------------
COMMERCIAL PAPER -- 53.08%
5,000,000 Nestle Capital Corporation,
5.28%, due 5/1/96................. $ 5,000,000
5,000,000 Winn Dixie Stores Inc.,
5.05%, due 5/6/96................. 4,996,493
5,000,000 Smith Barney Inc.,
5.30%, due 5/8/96................. 4,994,847
5,000,000 Walt Disney Company,
5.21%, due 5/9/96................. 4,994,211
5,000,000 Nynex Corp.,
5.42%, due 5/9/96................. 4,993,978
6,500,000 Nynex Corp.,
5.15%, due 5/10/96................ 6,491,631
5,500,000 Internationale Nederlanden
Funding Corp.,
5.36%, due 5/10/96................ 5,492,630
5,000,000 Echlin Inc.,
5.35%, due 5/10/96................ 4,993,312
3,527,000 First Chicago NBD Corp.,
5.37%, due 5/13/96................ 3,520,687
5,000,000 Island Finance Norwest Co.,
5.28%, due 5/14/96................ 4,990,467
5,000,000 Franklin Resources Inc.,
5.35%, due 5/15/96................ 4,989,597
COMMERCIAL PAPER -- 53.08%
5,000,000 Ford Motor Credit Co.,
5.33%, due 5/16/96................ $ 4,988,896
5,000,000 Allomon Funding Corp.,
5.35%, due 5/16/96................ 4,988,854
3,500,000 Nynex Corp.,
5.18%, due 5/17/96................ 3,491,942
5,050,000 Harley Davidson Dealer Funding
Corp.,
5.34%, due 5/20/96................ 5,035,767
5,000,000 Briarcliff Capital Corp.,
5.33%, due 5/20/96................ 4,985,935
5,000,000 IBM Credit Corp.,
5.28%, due 5/20/96................ 4,986,067
5,060,000 First Chicago NBD Corp.,
5.35%, due 5/21/96................ 5,044,960
5,000,000 IBM Credit Corp.,
5.30%, due 5/29/96................ 4,979,389
5,000,000 CAF Barclays LOC,
5.30%, due 5/30/96................ 4,978,653
5,000,000 Nynex Corp.,
5.32%, due 6/3/96................. 4,975,617
5,000,000 American Trading & Production
Corp.,
5.30%, due 6/4/96................. 4,974,972
5,000,000 Echlin Inc.,
5.29%, due 6/4/96................. 4,975,019
5,000,000 Pitney Bowes Capital Corp.,
5.26%, due 6/5/96................. 4,974,430
5,000,000 Explorer Pipeline Co.,
5.30%, due 6/5/96................. 4,974,236
5,000,000 Explorer Pipeline Co.,
5.30%, due 6/6/96................. 4,973,500
10,000,000 Bank of America Corp.,
5.38%, due 6/11/96................ 10,000,000
5,000,000 Harley Davidson Dealer Funding
Corp.,
5.32%, due 6/11/96................ 4,969,705
5,300,000 Allomon Funding Corp.,
5.35%, due 6/12/96................ 5,266,919
5,000,000 American Trading & Production
Corp.,
5.35%, due 6/13/96................ 4,968,049
5,000,000 National Australia Ltd.,
5.28%, due 6/17/96................ 4,965,533
5,000,000 Allomon Funding Corp.,
5.32%, due 6/17/96................ 4,965,272
5,000,000 Pitney Bowes Inc.,
5.31%, due 6/18/96................ 4,964,600
5,000,000 Pemex Capital Inc.,
5.33%, due 6/19/96................ 4,963,726
5,000,000 Island Finance Norwest,
5.31%, due 6/21/96................ 4,962,387
5,000,000 Petroleo Brasileiro SA,
LOC Barclays Bank PLC,
5.31%, due 6/24/96................ 4,960,175
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 4
CRANBROOK FUNDS
CRANBROOK MONEY MARKET FUND (CONTINUED)
SCHEDULE OF INVESTMENTS -- APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COMMERCIAL PAPER -- 53.08% COST
AMOUNT (CONTINUED) (NOTE 2)
- ---------- ------------
<C> <S> <C>
5,000,000 Internationale Nederlanden
Funding Corp.,
5.28%, due 6/24/96................ $ 4,960,400
5,000,000 American Trading & Production
Corp.,
5.35%, due 6/27/96................ 4,957,646
5,000,000 Echlin Inc.,
5.28%, due 7/8/96................. 4,950,133
4,009,000 Franklin Resources Inc.,
5.35%, due 7/12/96................ 3,966,104
5,000,000 Abbey National North America,
5.05%, due 7/26/96................ 4,939,680
5,000,000 Sinochem American CP Inc.,
LOC Credit Suisse,
5.30%, due 7/26/96................ 4,936,694
5,000,000 Walt Disney Co.,
5.29%, due 8/14/96................ 4,922,854
5,000,000 JP Morgan & Company Inc.,
5.00%, due 9/3/96................. 4,913,194
5,300,000 Banco Real S A Grand Cayman,
LOC Barclays,
5.31%, due 10/2/96................ 5,179,610
------------
$227,498,771
------------
REPURCHASE AGREEMENTS -- 7.63%
32,706,000 Greenwich Capital Tri Party,
5.375%, due 5/1/96 (secured by
various Government National
Mortgage Association securities
with maturities ranging from
9/1/00 to 12/1/25 at various
interest rates ranging from 6.50%
to 9.50%, all held at Chemical
Bank)............................. $ 32,706,000
------------
$ 32,706,000
------------
BANKERS ACCEPTANCES -- 2.31%
5,000,000 American Express Co.,
5.30%, due 6/25/96................ $ 4,959,514
5,000,000 American Express Bank Ltd.,
5.22%, due 7/25/96................ 4,940,854
------------
$ 9,900,368
------------
TAXABLE MUNICIPALS -- 5.06%
10,000,000 Anaheim CA,
5.333%, due 5/1/96................ 10,000,000
11,700,000 Trover Clinic PSC,
LOC Rabo Bank, Floating
Rate Note,
5.438%, due 5/30/96............... 11,700,000
------------
$ 21,700,000
------------
MEDIUM TERM NOTES -- 20.36%
10,000,000 Norwest Corp., Medium
Term Floating Rate Note,
5.58%, due 5/23/96................ $ 10,000,000
4,000,000 AT&T Capital Corp.,
Medium Term Floating Rate Note,
5.29%, due 5/24/96................ 3,999,195
10,000,000 First Bank Systems FSB,
Medium Term Floating Rate Note,
5.58%, due 6/3/96................. 10,000,000
10,000,000 Merrill Lynch & Co.,
Medium Term Floating Rate Note,
5.59%, due 7/12/96................ 10,000,000
5,000,000 General Electric Credit Corp.,
Medium Term Note,
5.68%, due 9/12/96................ 4,998,559
5,583,851 Case Equipment Loan Trust,
Asset Backed Certificate,
5.00%, due 9/15/96................ 5,581,516
8,000,000 Society National Bank,
Medium Term Note,
6.875%, due 10/15/96.............. 8,038,682
10,000,000 American Express Centurion Bank,
Medium Term Note,
5.95%, due 10/25/96............... 10,000,000
5,000,000 Dean Witter Discover,
Floating Rate Unsecured Note,
5.54%, due 11/15/96............... 5,005,139
2,000,000 General Electric Capital Corp.,
Debenture,
8.75%, due 11/26/96............... 2,041,013
4,400,000 Ford Motor Credit Corp.,
Medium Term Note,
9.30%, due 2/18/97................ 4,518,177
5,000,000 IBM Credit Corp.,
Medium Term Note,
5.00%, due 2/24/97................ 4,995,223
7,912,000 Household Finance Corp.,
7.50%, due 3/15/97................ 8,062,760
------------
$ 87,240,264
------------
Total Investments.................. $428,586,983
============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 5
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments, at amortized cost
(Notes 2 and 4):
Repurchase agreements.................... $25,134,000
Other.................................... 31,671,531
-----------
Total investments...................... $56,805,531
Cash....................................... 3,371
Interest receivable........................ 342,093
Prepaid expenses........................... 20,943
-----------
Total assets........................... $57,171,938
-----------
LIABILITIES (NOTE 3):
Accrued administrator fee.................. $ 12,899
Accrued investment advisor fee............. 11,608
Accrued transfer and dividend disbursing
fees..................................... 1,895
Accounts payable and accrued expenses...... 12,563
Dividends payable.......................... 36,149
-----------
Total liabilities...................... $ 75,114
-----------
Total net assets....................... $57,096,824
===========
NET ASSETS:
Shares of beneficial interest, an unlimited
number of shares authorized, 57,096,824
shares outstanding, par value $.10 per
share.................................... $ 5,709,682
Additional paid-in capital................. 51,387,142
-----------
Total net assets....................... $57,096,824
===========
NET ASSET VALUE:
Offering and redemption price per share on
57,096,824 shares of beneficial interest
outstanding.............................. $1.00
===========
</TABLE>
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
TOTAL INVESTMENT INCOME (NOTE 2)............ $1,687,500
----------
EXPENSES (NOTES 2 AND 3):
Administrator fee........................... $ 76,832
Investment advisor fee...................... 69,148
Custodial fees.............................. 36,248
Transfer and dividend disbursing fees....... 13,747
Professional fees........................... 7,602
Registration and filing fees................ 6,239
Postage and printing........................ 6,142
Insurance................................... 5,202
Other....................................... 3,047
----------
Total expenses............................ $ 224,207
----------
NET INVESTMENT INCOME....................... $1,463,293
==========
RATIO OF TOTAL EXPENSES TO TOTAL
INVESTMENT INCOME......................... 13.29%
==========
</TABLE>
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 1996
(UNAUDITED)
-----------------
<S> <C>
FROM OPERATIONS:
Net investment income................................................. $ 1,463,293
Dividends declared (Note 2)........................................... (1,463,293)
-------------
Change in net assets from operations................................ $ --
-------------
FROM SHARE TRANSACTIONS (at $1.00 per share):
Proceeds from sale of shares.......................................... $ 81,025,069
Asset value of shares issued in reinvestment of dividends............. 1,466,346
-------------
$ 82,491,415
Payments for shares redeemed.......................................... (83,357,923)
-------------
Change in net assets from share transactions........................ $ (866,508)
-------------
NET CHANGE IN NET ASSETS................................................ $ (866,508)
NET ASSETS:
Beginning of period................................................... 57,963,332
-------------
End of period......................................................... $ 57,096,824
=============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 6
CRANBROOK FUNDS
CRANBROOK TREASURY FUND
SCHEDULE OF INVESTMENTS -- APRIL 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
AMORTIZED
PRINCIPAL COST
AMOUNT U.S. GOVERNMENT OBLIGATIONS -- 50.71% (NOTE 2)
- ---------- ------------
<C> <S> <C>
7,500,000 U.S. Treasury Note,
7.375%, due 5/15/96.................................................... $ 7,505,308
5,000,000 U.S. Treasury Bill,
5.01%, due 7/11/96..................................................... 4,953,776
2,500,000 U.S. Treasury Note,
4.375%, due 8/15/96.................................................... 2,496,057
3,000,000 U.S. Treasury Strip,
5.18%, due 8/15/96..................................................... 2,955,506
6,000,000 U.S. Treasury Strip,
7.25%, due 11/15/96.................................................... 5,831,365
5,000,000 U.S. Treasury Note,
6.625%, due 3/31/97.................................................... 5,062,544
------------
$ 28,804,556
------------
REPURCHASE AGREEMENTS -- 44.24%
5,000,000 Lehman Brothers Tri Party,
5.34%, due 5/1/96 (secured by U.S. Treasury securities due 2/15/06 at
5.625%, all held at Chemical Bank)..................................... $ 5,000,000
5,500,000 Greenwich Capital Corp. Tri Party,
5.375%, due 5/1/96 (secured by various Government National Mortgage
Association securities with maturities ranging from 9/1/01 to 12/1/25
at various interest rates ranging from 7.00% to 13.50%, all held at
Chemical Bank)......................................................... 5,500,000
5,500,000 Daiwa Securities Tri Party,
5.30%, due 5/1/96 (secured by U.S. Treasury securities due 11/15/07 at
7.875%, all held at Bank of New York).................................. 5,500,000
3,134,000 Merrill Lynch Tri Party,
5.30%, due 5/1/96 (secured by various Government National Mortgage
Association securities with maturities ranging from 8/15/23 to 2/1/31
at various interest rates ranging from 6.00% to 8.50%, all held at
Chemical Bank)......................................................... 3,134,000
6,000,000 Dean Witter Tri Party,
5.08%, due 5/2/96 (secured by various U.S. Treasury securities with
maturities ranging from 1/9/97 to 10/15/98 at various interest rates
ranging from 0.00% to 7.125%, all held at Bank of New York)............ 6,000,000
------------
$ 25,134,000
------------
AGENCIES -- 5.05%
2,862,961 Small Business Administration, Variable Rate Note,
6.00%, due 1/25/21..................................................... $ 2,866,975
------------
$ 2,866,975
------------
Total Investments....................................................... $ 56,805,531
============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 7
CRANBROOK FUNDS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996
(UNAUDITED)
(1) ORGANIZATION
Cranbrook Money Market Fund and Cranbrook Treasury Fund are separate series
of Cranbrook Funds (the "Fund"), which is an unincorporated business trust that
was organized under Massachusetts law on November 30, 1994 and which commenced
operations on March 1, 1995. Each series 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.
(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.
Some of the Fund's investments in securities are 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 (CONTINUED)
APRIL 30, 1996
(UNAUDITED)
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 TREASURY FUND
EFFECTIVE DATE ANNUAL RATE ANNUAL RATE
- -------------- ------------------ -----------------
<S> <C> <C>
November 1 .705% .705%
December 6 .685% .735%
</TABLE>
The Fund monitors the rate at which expenses are charged to ensure that a
proper amount of expense is charged to income each period. 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 six months ended April 30, 1996.
Pursuant to the foregoing arrangements under the Administration and
Distribution Agreement and Advisory Agreement, for the six months ended April
30, 1996, FoM earned $532,478 and $76,832 and CCM earned $479,221 and $69,148 in
fees from the Money Market Fund and the Treasury Fund, respectively.
FoM is also compensated for its services as the Fund's Transfer and
Dividend Distribution Agent and NBD Bank ("NBD") is 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 six months ended April
30, 1996, the Money Market Fund and the Treasury Fund incurred expenses of
$303,275 and $58,042, 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 (CONTINUED)
APRIL 30, 1996
(UNAUDITED)
(4) INVESTMENT SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment securities,
including repurchase agreements, during the period aggregated $5,537,456,353 and
$5,525,268,688 respectively, for the Money Market Fund and $3,178,457,578 and
$3,179,958,813, 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
-----------------
SIX MONTHS ENDED
APRIL 30, 1996
(UNAUDITED)
-----------------
<S> <C>
Net investment income............................................... $ 0.0248
Distributions from net investment income............................ $ (0.0248)
Net Asset Value per share at beginning and end of period............ $ 1.00
Total Return........................................................ 4.96%(a)
Net assets, end of period........................................... $ 429,663,817
Ratios to average net assets:
Net investment income............................................. 4.95%(a)
Expenses.......................................................... 0.69%(a)
</TABLE>
<TABLE>
<CAPTION>
TREASURY FUND
-----------------
SIX MONTHS ENDED
APRIL 30, 1996
(UNAUDITED)
-----------------
<S> <C>
Net investment income............................................... $ 0.0237
Distributions from net investment income............................ $ (0.0237)
Net Asset Value per share at beginning and end of period............ $ 1.00
Total Return........................................................ 4.74%(a)
Net assets, end of period........................................... $ 57,096,824
Ratios to average net assets:
Net investment income............................................. 4.74%(a)
Expenses.......................................................... 0.73%(a)
</TABLE>
- -------------------------
(a) Annualized for periods less than one year.
8
<PAGE> 10
[FIRST OF MICHIGAN LOGO]
MEMBERS:
New York Stock Exchange, Inc.
EXECUTIVE OFFICES
DETROIT, MI 48243-1182 NEW YORK, NY 10005-3794
100 Renaissance Center/26th Floor 100 Wall Street/21st Floor
(313) 259-2600 (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 E. Hill Rd./Suite A 7 N. Main St./Suite 108
(517) 263-8570 (810) 694-2980 (810) 469-4930
ANN ARBOR 48104-2200 GRAND RAPIDS 49503-2373 PORT HURON 48059-4101
301 E. Liberty St. 300 Ottawa, N.W. 3899 24th Ave.
(313) 747-8040 (616) 774-0141 (810) 987-1500
AUBURN HILLS 48326-2563 GROSSE POINTE 48230-1559 SAGINAW 48602-3210
2701 University Dr./Suite 425 16980 Kercheval 3210 Davenport Ave.
(810) 475-1700 (313) 886-1200 (517) 792-2346
BATTLE CREEK 49017-3611 GROSSE POINTE WOODS 48236-1821 ST. JOSEPH 49085-1259
29 W. Michigan Mall 20155 Mack Avenue 2900 S. State St.
(616) 962-4034 (313) 884-9600 (616) 983-2587
BAY CITY 48708-5731 HARBOR SPRINGS 49740-1532 SOUTHFIELD 48076-4241
723 Washington Ave. 115 E. Third St. 26555 Evergreen Rd.
(517) 894-5757 (616) 526-2193 (810) 358-3290
BIRMINGHAM 48009-5301 HOLLAND 49423-3546 SOUTHGATE 48195-1300
280 N. Woodward 100 E. Eighth St./Suite 280 13219 Eureka Rd.
(810) 647-1400 (616) 392-7986 (313) 285-2000
BLOOMFIELD HILLS 48304-2862 JACKSON 49201-1227 STERLING HEIGHTS 48313-1149
1533 N. Woodward/Suite 150 333 Louis Glick Hwy., West 12900 Hall Road/Suite 100
(810) 540-2787 (517) 782-0405 (810) 726-5000
COLDWATER 49036-1966 KALAMAZOO 49007-3923 TRAVERSE CITY 49684-5552
150 N. Willowbrook Rd./Suite 300 259 E. Michigan Ave. 10850 Traverse Hwy.
(517) 278-7189 (616) 382-2600 (616) 947-2200
DEARBORN 48124-1979 LAPEER 48446-3810 TROY 48084-3510
23400 Michigan Ave. 25 W. Nepessing 1719 W. Big Beaver Rd.
(313) 277-0300 (810) 664-0050 (810) 643-9100
EAST LANSING 48823-2433 MIDLAND 48640-5189 WEST BLOOMFIELD 48322-2394
1427 W. Saginaw 200 E. Main St. 6230 Orchard Lake Rd./Suite 230
(517) 332-8000 (517) 631-0620 (810) 855-2100
FRANKENMUTH 48734-1532
108 W. School Street
(517) 652-3251
</TABLE>
Customers of First of Michigan Corporation are protected by an excess
[SIPC SIPC policy underwritten by the Aetna Casualty and Surety Company.
LOGO] 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.
<PAGE> 11
EXHIBIT INDEX
Exhibit
No. Description Page
- ------- ----------- ----
27.1 Cranbrook Money Market Fund Financial Data Schedule
27.2 Cranbrook Treasury Fund Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> CRANBROOK MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 427,860,745
<INVESTMENTS-AT-VALUE> 428,586,983
<RECEIVABLES> 1,514,768
<ASSETS-OTHER> 75,745
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 430,177,496
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 513,679
<TOTAL-LIABILITIES> 513,679
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 386,697,435
<SHARES-COMMON-STOCK> 429,663,817
<SHARES-COMMON-PRIOR> 352,661,090
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 429,663,817
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 12,060,294
<OTHER-INCOME> 0
<EXPENSES-NET> 1,467,269
<NET-INVESTMENT-INCOME> 10,593,025
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 10,593,025
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 679,067,771
<NUMBER-OF-SHARES-REDEEMED> 672,728,219
<SHARES-REINVESTED> 10,505,790
<NET-CHANGE-IN-ASSETS> 16,845,342
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 479,221
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,467,269
<AVERAGE-NET-ASSETS> 428,006,121
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .025
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .025
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> CRANBROOK TREASURY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 56,784,016
<INVESTMENTS-AT-VALUE> 56,805,531
<RECEIVABLES> 342,093
<ASSETS-OTHER> 24,314
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57,171,938
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 75,114
<TOTAL-LIABILITIES> 75,114
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51,387,142
<SHARES-COMMON-STOCK> 57,096,824
<SHARES-COMMON-PRIOR> 64,068,415
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 57,096,824
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,687,500
<OTHER-INCOME> 0
<EXPENSES-NET> 224,207
<NET-INVESTMENT-INCOME> 1,463,293
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,463,293
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 81,025,069
<NUMBER-OF-SHARES-REDEEMED> 83,357,923
<SHARES-REINVESTED> 1,466,346
<NET-CHANGE-IN-ASSETS> (866,508)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 69,148
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 224,207
<AVERAGE-NET-ASSETS> 61,758,591
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .024
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .024
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .73
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
