(JEFFERSON GROWTH & INCOME FUND LOGO)
SEMI-ANNUAL REPORT
APRIL 30, 1996
June 1996
Dear Fellow Shareholders,
I am pleased to report that since our first fiscal year end of October 31,
1995, the net asset value of Class A shares has grown from $10.04 to $10.55 and
the net asset value of Class B shares has grown from $10.03 to $10.52 as of
April 30, 1996. In addition, shareholders received quarterly dividends of $.074
and $.065 on Class A shares, and $.055 and $.051 on Class B shares.
The Fund has also enjoyed substantial growth in assets since our last report.
At October 31, 1995, fund assets totalled $1.4 million. Assets have grown during
the last six months to over $2.6 million, an increase of over 85% for the
period.
As you can see from the schedule of investments contained inside this report,
we continue to own a wide range of quality companies. Our equity exposure has
risen since the last report from about 37% of the portfolio to about 55% of the
portfolio at the end of the period. The balance of the portfolio contains high
quality corporate bonds, notes and money market instruments.
Six months ago we voiced some concern about the possibility of a corporate
earnings slowdown and the potential negative effect that could have on share
values. Since then, analysts have been revising more earnings estimates downward
than upward. In addition, since the beginning of the year long term interest
rates have risen nearly one percent from 5.9% to 6.9%. A continued rise in long
term interest rates could potentially add additional risk in what seems, by most
historic measures, to be an overvalued market. This situation continues to keep
the structure of our portfolio defensive.
Uniplan, Inc., the investment adviser to the Fund, uses a disciplined
investment approach when selecting stocks. Since our last report, a number of
new stock opportunities have been added to the Fund portfolio. The most
significant expansion of holdings was in the domestic energy sector. We remain
confident that the disciplined approach will continue to deliver exciting
investment opportunities with superior long-term risk adjusted returns while
minimizing portfolio risk.
Sincerely,
/s/ Richard Imperiale
Richard Imperiale
Chairman
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)
ASSETS:
Investments, at value (cost $2,824,765) $2,891,513
Income receivable 11,814
Receivable for shares issued 3,164
Organization costs, net of accumulated amortization 64,163
Other assets 1,230
----------
Total Assets 2,971,884
----------
LIABILITIES:
Payable to Distributor 58,583
Payable for securities purchased 249,254
Call options written, at value (Premiums received $2,029)
See accompanying schedule 3,375
Accrued expenses 37,684
Other 1,225
----------
Total Liabilities 350,121
----------
NET ASSETS $2,621,763
----------
----------
NET ASSETS CONSIST OF:
Capital stock $2,521,665
Undistributed net investment income 5,293
Undistributed accumulated net realized gains on investments 29,403
Unrealized net appreciation on investments 65,402
----------
Total Net Assets $2,621,763
----------
----------
CLASS A:
Net assets $2,380,649
Shares outstanding (unlimited number issued) 225,617
Net asset value and redemption price per share $10.55
----------
----------
Maximum offering price per share $11.16
----------
----------
CLASS B:
Net assets $241,114
Shares outstanding (unlimited number issued) 22,923
Net asset value and offering price per share $10.52
----------
----------
Redemption price per share, assuming maximum
contingent deferred sales charge $9.99
----------
----------
See notes to the financial statements.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
Dividend income $15,008
Interest income 25,178
---------
40,186
EXPENSES:
Investment advisory fees 6,061
Administration fees 17,945
Shareholder servicing and accounting costs 30,418
Distribution fees -- Class A 2,526
Distribution fees -- Class B 725
Custody fees 5,011
Federal and state registration fees 2,590
Professional fees 9,227
Reports to shareholders 4,986
Amortization of organization costs 1,416
Trustees' fees and expenses 2,731
Other 2,039
----------
Total expenses before waiver and reimbursement 85,675
Less: Waiver of expenses and reimbursement
from Distributor (73,333)
----------
Net Expenses 12,342
----------
NET INVESTMENT INCOME 27,844
----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments 29,403
Change in unrealized appreciation on investments 64,598
---------
Net gain on investments 94,001
---------
NET INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS $121,845
---------
---------
See notes to the financial statements.
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
SIX MONTHS SEPTEMBER 1, 1995 1<F1>
ENDED THROUGH
APRIL 30, 1996 OCTOBER 31, 1995
--------------- -----------------
OPERATIONS:
Net investment income $27,844 $5,050
Net realized gain on investments 29,403 --
Change in unrealized appreciation
on investments 64,598 804
---------- ----------
Net increase in net assets resulting
from operations 121,845 5,854
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,210,917 1,406,112
Shares issued to owners in reinvestment
of dividends 27,358 --
---------- -----------
1,238,275 1,406,112
Shares redeemed (122,723) --
----------- -----------
Net Increase 1,115,552 1,411,966
DISTRIBUTIONS TO SERIES A SHAREOWNERS:
From net investment income (25,454) --
From net realized gains -- --
DISTRIBUTIONS TO SERIES B SHAREOWNERS:
From net investment income (2,146) --
From net realized gains -- --
TOTAL INCREASE IN NET ASSETS 1,209,797 --
NET ASSETS:
Beginning of period 1,411,966 --
----------- -----------
End of period (including undistributed net
investment income of $5,293
and $5,050, respectively) $2,621,763 $1,411,966
----------- -----------
----------- -----------
1 <F1>Commencement of operations.
See notes to the financial statements.
FINANCIAL HIGHLIGHTS
SEPTEMBER 1,
(UNAUDITED) 1995 1<F2>
SIX MONTHS ENDED THROUGH
APRIL 30, 1996 OCTOBER 31, 1995
---------------- -----------------
CLASS A CLASS B CLASS A CLASS B
------- ------- ------- -------
Per share data:
Net asset value, beginning of period $10.04 $10.03 $10.00 $10.00
Income from investment operations:
Net investment income 0.12 0.09 0.04 0.03
Net realized and unrealized
gains on securities 0.53 0.51 -- --
------ ------ ------ ------
Total from investment operations 0.65 0.60 0.04 0.03
Less Distributions:
Dividends from net investment income (0.14) (0.11) -- --
Distributions from capital gains -- -- -- --
------- ------ ------ ------
Total distributions (0.14) (0.11) -- --
Net asset value, end of period $10.55 $10.52 $10.04 $10.03
------- ------ ------- ------
------- ------ ------- ------
Total Return 2,<F3>3<F4> 6.50% 5.96% 0.40% 0.30%
Supplemental data and ratios:
Net assets, in thousands,
end of period $2,381 $241 $1,279 $133
Ratio of net expenses to average
net assets4<F5> 1.15% 1.90% 1.15% 1.90%
Ratio of net investment income
to average net assets 4<F5> 2.82% 2.11% 3.09% 2.59%
Portfolio turnover rate 55.42%5<F6> 55.42%5<F6>--6<F9> --6<F9>
Average commission rate $.1061 $.1061 -- --
1 <F2>Commencement of operations.
2 <F3>Not annualized.
3 <F4>The total return calculation does not reflect the 5.5% front end sales
charge for Class A or the 5% CDSC on Class B.
4 <F5>Annualized.
5 <F6>Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
6 <F9>During this period, there were no sales of securities.
See notes to the financial statements.
SCHEDULE OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED)
NUMBER
OF SHARES VALUE
- --------- ------
COMMON STOCKS -- 55.2%*<F7>
AUTO PARTS -- 1.1%*<F7>
1,000 Exide Corporation $28,125
-------
BANK & BANK HOLDING COMPANIES -- 1.5%*<F7>
1,000 KeyCorp 38,625
-------
BIO-TECHNOLOGY -- 0.5%*<F7>
2,200 Interpore International+<F8> 13,750
-------
BUSINESS - MACHINES & SOFTWARE -- 3.7%*<F7>
1,000 Honeywell, Inc. 52,625
900 Pitney-Bowes, Inc. 43,875
-------
96,500
-------
BUSINESS SERVICES -- 1.3%*<F7>
1,000 Deluxe Corporation 35,000
-------
COMMUNICATIONS & MEDIA -- 1.2%*<F7>
1,000 New York Times Co.- Class A 32,500
-------
CONSUMER DURABLE -- 2.3%*<F7>
800 Eastman Kodak Company 61,200
-------
ELECTRIC -- 2.1%*<F7>
1,000 CMS Energy Corporation 29,125
900 Consolidated Edison Company of New York, Inc. 26,437
-------
55,562
-------
ELECTRONICS -- 1.1%*<F7>
1,000 KLA Instruments Corporation+<F8> 28,875
-------
ENERGY -- 1.2%*<F7>
1,000 Panenergy Corporation 32,625
-------
ENTERTAINMENT & LEISURE -- 1.0%*<F7>
2,650 Innkeepers USA Trust 25,506
-------
FINANCIAL SERVICES -- 0.5%*<F7>
500 A.G. Edwards & Sons 11,750
-------
FOOD, BEVERAGE & TOBACCO -- 6.9%*<F7>
1,000 American Brands, Inc. 41,625
1,000 Archer-Daniels-Midland Company 18,875
1,000 Dole Food Company 40,000
4,050 Morningstar Group, Inc.+<F8> 40,500
2,000 Whole Foods Market, Inc.+<F8> 40,750
---------
181,750
---------
HEALTH CARE SERVICES -- 1.9%*<F7>
1,000 Health Images, Inc. 9,375
2,000 Horizon/CMS Healthcare Corp.+<F8> 26,500
1,000 Meridian Diagnostics, Inc. 9,500
2,000 Northstar Health Services, Inc.+<F8> 4,750
--------
50,125
--------
INSURANCE -- 1.7%*<F7>
1,600 PartnerRe Ltd. 45,200
--------
METALS & MINING -- 0.6%*<F7>
500 Freeport-McMoRan Copper & Gold, Inc. 5% Series 14,188
--------
MISCELLANEOUS -- 5.7%*<F7>
1,000 National Golf Properties, Inc. 24,625
1,500 Public Storage, Inc. 30,750
1,100 Rhone-Poulenc Rorer, Inc. 68,200
1,000 Silicon Valley Group, Inc.+<F8> 26,750
--------
150,325
--------
OIL & GAS - DOMESTIC -- 8.3%*<F7>
1,500 El Paso Natural Gas Company 55,500
1,200 Occidental Petroleum Corporation 30,900
500 Phillips Petroleum Company 20,750
550 Schlumberger 48,538
1,050 Sun Company, Inc. 32,550
1,500 Washington Energy Company 29,063
---------
217,301
---------
OIL & GAS - INTERNATIONAL -- 1.6%*<F7>
1,000 Imperial Oil Ltd. 40,500
---------
REAL ESTATE -- 2.2%*<F7>
1,625 Manufactured Home Communities, Inc. 30,672
1,000 Spieker Properties, Inc. 26,000
---------
56,672
---------
TELEPHONE -- 3.5%*<F7>
1,100 GTE Corporation 47,712
1,500 MCI Communications Corporation 44,156
---------
91,868
---------
TRANSPORTATION -- 3.3%*<F7>
1,000 Kansas City Southern Industries, Inc. 48,500
1,300 Southwest Airlines Company 38,675
---------
87,175
---------
TRAVEL & RECREATION -- 2.0%*<F7>
2,000 Hospitality Properties Trust 51,000
--------
Total Common Stocks
(Cost $1,376,080) 1,446,122
---------
CONVERTIBLE PREFERRED STOCKS -- 3.3%*<F7>
Consumer Durables -- 1.0%*<F7>
500 Battle Mountain Gold Company 25,250
---------
Manufacturing -- 2.3%*<F7>
2,350 Oasis Residential, Inc. Convertible Preferred 2.25% 61,688
---------
Total Convertible Preferred Stock
(Cost $89,993) 86,938
---------
LONG-TERM INVESTMENTS -- 3.4%*<F7>
CORPORATE BONDS -- 3.4%*<F7>
BANK & BANK HOLDING COMPANIES -- 0.6%*<F7>
$ 15,000 CitiCorp Notes, 8.75%, 11/01/96 $15,221
--------
FINANCE COMPANY -- 2.8%*<F7>
75,000 Commonwealth Edison Company of
New York, Inc., 5.75%, 12/01/96 74,725
--------
Total Long-Term Investments
(Cost $90,185) 89,946
--------
SHORT-TERM INVESTMENTS -- 48.4%*<F7>
MASTER LEASE AGREEMENTS -- 0.4%*<F7>
TELECOMMUNICATIONS -- 0.4%*<F7>
AT&T Corporation Master Lease Agreements,
3,271 4.75%, 07/01/96 3,264
5,873 4.85%, 10/30/96 5,833
--------
9,097
--------
MEDIUM TERM NOTES -- 3.8%*<F7>
FINANCE COMPANY -- 3.8%*<F7>
100,000 Salomon Brothers, Inc., 6.34%, 09/18/96 100,178
--------
U.S. GOVERNMENT -- 11.4%*<F7>
300,000 U.S. Treasury Bill, 4.71%, 06/06/96 298,566
--------
VARIABLE RATE DEMAND NOTES,
DUE UPON DEMAND -- 32.8%*<F7>
DRUGS -- 5.7%*<F7>
126,000 Lilly (Eli) & Co., 4.88% 126,000
23,000 Warner-Lambert, 5.00% 23,000
--------
149,000
--------
FOOD -- 8.1%*<F7>
126,000 General Mills, Inc., 5.02% 126,000
86,666 Sara Lee Corporation, 5.01% 86,666
--------
212,666
--------
TECHNOLOGY -- 9.6%*<F7>
126,000 American Family, 5.03% 126,000
126,000 Pitney Bowes Credit Corporation, 5.03% 126,000
---------
252,000
---------
UTILITIES -- 9.4%*<F7>
121,000 Southwestern Bell Telephone Company, 5.01% 121,000
126,000 Wisconsin Electric Power Company, 5.07% 126,000
--------
247,000
--------
Total Short-Term Investments
(Cost $1,268,507) 1,268,507
----------
Total Investments
(Cost $2,824,765) $2,891,513
----------
----------
*<F7>Calculated as a percentage of net assets.
+<F8>Non-income producing.
See notes to the financial statements.
SCHEDULE OF CALL OPTIONS WRITTEN
APRIL 30, 1996 (UNAUDITED)
CONTRACTS (100 SHARES PER CONTRACT) VALUE
- ----------------------------------- ------
5 Schlumberger
Expiration August 1996, Exercise Price $85 $3,375
-------
TOTAL CALL OPTIONS WRITTEN
(Premiums received $2,029) $3,375
-------
-------
See notes to the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED)
1). ORGANIZATION
The Jefferson Growth & Income Fund (the "Fund") is a mutual fund created by
The Jefferson Fund Group Trust (the "Trust") which was organized as a business
trust under the laws of Delaware on January 20, 1995. The Fund is one of a
series issued by the Trust, which is an open-end management company registered
under the Investment Company Act of 1940, as amended. The objectives of The
Jefferson Growth &Income Fund are to produce long-term capital appreciation and
current income principally through investing in equity securities.
Between the date of organization and the commencement of operations on
September 1, 1995, the Fund had no operations other than incurring
organizational expenses. These costs aggregated $65,659, which were paid by
Rodman & Renshaw, Inc. and are being amortized over the period of benefit, but
not to exceed sixty months from the date the Fund commenced operations.
The Trust is authorized to issue an unlimited number of shares without par
value. The Trust has issued two classes of shares in the Fund: Class A and
Class B. The Class A shares are subject to a service organization fee of 0.25%
pursuant to Rule 12b-1 and a front-end sales charge imposed at the time of
purchase in accordance with the Fund's prospectus. The maximum front-end sales
charge is 5.50% of the offering price or 5.82% of the net asset value. The
Class B shares are subject to a service organization fee of 0.25% and
distribution fees of 0.75% pursuant to Rule 12b-1. Certain of the Class B shares
are subject to a contingent deferred sales charge (CDSC), upon redemption from
the Fund within seven years from the time of the original purchase. Each class
of shares of the Fund has identical rights and privileges.
2). SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements. These policies are in
conformity with generally accepted accounting principles.
a). Investment Valuation - Securities which are traded on a national or
recognized stock exchange are valued at the last sale price on the securities
exchange on which such securities are primarily traded. Exchange-traded
securities for which there were no transactions that day are valued at the most
recent bid prices. Securities traded on only over-the-counter markets are
valued on the basis of closing over-the-counter bid prices. Instruments with a
remaining maturity of 60 days or less are valued on an amortized cost basis.
Securities for which market quotations are not readily available, and securities
which are restricted as to resale are valued at fair value as determined by the
investment adviser under the supervision of the Board of Trustees. Portfolio
securities which are primarily traded on foreign securities exchanges are
generally valued at the preceding closing values of such securities on their
respective exchanges, except when an occurrence subsequent to the time a value
was so established is likely to have changed such value.
b). Federal Income Taxes - Provision for federal income taxes or excise taxes
has not been made since the Fund has elected to be taxed as a "regulated
investment company" and intends to distribute substantially all taxable income
to its shareowners and otherwise comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies.
c). Income and Expenses - The Fund is charged for those expenses that are
directly attributable to the portfolio, such as advisory, administration and
certain shareowner service fees. Net investment income other than class specific
expenses, and realized and unrealized gains and losses are allocated daily to
each class of shares based upon the relative net asset value of outstanding
shares at the beginning of the day (after adjusting for the current capital
share activity of the respective class).
d). Distributions to Shareowners - Dividends from net investment income are
declared and paid on a calendar quarter basis. Distributions of net realized
capital gains, if any, will be declared at least annually.
e). Written Option Accounting - When the Fund sells an option, an amount equal
to the premium received by the Fund is included in the Statement of Assets and
Liabilities as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the current value of the option
written. When an option expires on its stipulated expiration date or the Fund
enters into a closing purchase transaction, the Fund realizes a gain or loss if
the cost of the closing purchase transaction differs from the premium received
when the option was sold without regard to any unrealized gain or loss on the
underlying security, and the liability related to such option is eliminated.
When an option is exercised, the Fund realizes a gain or loss from the sale of
the underlying security, and the proceeds from such sale are increased by the
premium originally received.
f). Futures Contracts - The Fund may utilize futures contracts to a limited
extent for hedging purposes. The primary risks associated with the use of
futures contracts include an imperfect correlation between the change in market
value of the securities held by the Fund and the prices of futures contracts and
the possibility of an illiquid market. Futures contracts are valued based upon
their quoted daily settlement prices. Changes in initial settlement value are
accounted for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
g). Use of 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.
h). Other - Investment and shareowner transactions are accounted for no later
than the first business day after trade date. The Fund determines the gain or
loss realized form the investment transactions by comparing the original cost of
the security lot sold with the net sale proceeds. Dividend income in recognized
on the ex-dividend date and interest income is recognized on an accrual basis.
3). CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Fund were as follows.
CLASS A
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- -----------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
Shares sold $1,033,160 100,108 $1,273,808 127,362
Shares issued to owners in
reinvestment of dividends 25,211 2,447 -- --
Shares redeemed (44,195) (4,300) -- --
---------- ------- ---------- -------
Net increase $1,014,176 98,255 $1,273,808 127,362
CLASS B
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1996 OCTOBER 31, 1995
---------------- -----------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
Shares sold $177,757 17,037 $132,304 13,245
Shares issued to owners in
reinvestment of dividends 2,147 207 -- --
Shares redeemed (78,528) (7,566) -- --
-------- ------ -------- ------
Net increase $101,376 9,678 $132,304 13,245
4). INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the period ended April 30, 1996, were as follows:
PURCHASES SALES
---------- -------
U.S. Government -- --
Other $1,530,623 $623,643
At April 30, 1996, gross unrealized appreciation and depreciation of
investments for federal income tax purposes was as follows:
Appreciation $105,831
(Depreciation) (40,429)
---------
Net unrealized appreciation
on investments $65,402
---------
---------
At April 30, 1996, the cost of investments for federal income tax purposes
was $2,824,765.
5). INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Trust has entered into an investment advisory agreement with Uniplan,
Inc. (the "Adviser"). Pursuant to its Advisory Agreement with the Fund, the
Adviser is entitled to receive a fee, calculated daily and payable monthly, at
the annual rate of 0.60% as applied to the Fund's daily net assets.
The Trust has entered into a distribution and servicing agreement with Rodman
& Renshaw, Inc. (the "Distributor"). The Trust has adopted a Class A Servicing
Fee plan whereby the Fund pays the Distributor servicing fees of up to 0.25%
annually, calculated as a percentage of the Fund's average daily net assets
attributable to Class A shares. Pursuant to the Class B distribution and
servicing agreement, the Fund is authorized to pay the Distributor a
distribution fee in an amount not to exceed on an annual basis 0.75% of the
average daily net assets of the Class B shares of the Fund and a service fee in
an amount not to exceed on an annual basis 0.25% of the average daily net asset
value of the Class B shares of the Fund. The Distributor may bear various
promotional and sales related expenses, including the cost of printing and
mailing prospectuses to persons other than shareowners.
Under the distribution agreement, if the aggregate annual operating expenses
(excluding interest, taxes, brokerage commissions and other costs incurred in
connection with the purchase or sale of portfolio securities, and extraordinary
items) exceed 1.15% and 1.90% of average net assets for Class A and Class B
shares respectively, the Distributor will reimburse the Fund for the amount of
such excess. Accordingly, for the period ended April 30, 1996, the Distributor
reimbursed the Fund $73,333.
INVESTMENT ADVISER
Uniplan, Inc.
839 N. Jefferson Street
Milwaukee, WI 53202
(800) 261-9785
ADMINISTRATOR, TRANSFER AGENT, DIVIDEND
Paying Agent & Custodian
Firstar Trust Company
615 E. Michigan Street
Milwaukee, WI 53202
DISTRIBUTOR
Rodman & Renshaw, Inc.
233 South Wacker Drive
Suite 4500
Chicago, IL 60606
LEGAL COUNSEL
Foley & Lardner
330 N. Wabash Avenue
Suite 3300
Chicago, IL 60611
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
411 East Wisconsin
Milwaukee, WI 53202
