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Small Cap Equity Portfolio
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PORTFOLIO OF INVESTMENTS June 30, 1995 (unaudited)
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ISSUER SHARES VALUE
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COMMON STOCKS -- 64.5%
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Consumer Services - 2.7 %
Bally Entertainment Corp... 2,500 $ 30,625
----------
ELECTRONICS/TECHNICAL SERVICES - 16.9%
Asyst Technologies Inc.* .. 900 33,412
Exar Corp.*................ 1,100 32,450
Network General Corporation.* 1,100 29,975
Opti Inc.*................. 1,300 29,575
Planar Systems*............ 1,500 33,375
Vmark Software Inc.* ...... 1,700 30,175
----------
188,962
----------
ENERGY MINERALS - 5.2%
KCS Energy Inc. ........... 1,400 29,925
Lomak Petroleum Inc.* ..... 3,700 28,213
----------
58,138
----------
FINANCE - 5.7%
First Empire State Corp.... 200 34,300
Roosevelt Financial Group Inc. 1,800 30,038
----------
64,338
==========
HEALTH SERVICES/TECHNOLOGY - 12.6%
American Homepatient Inc.*. 1,000 29,750
Community Health Systems*.. 800 27,100
Mariner Health Group Inc.*. 2,400 27,000
Molecular Dynamics*........ 4,000 27,500
Sierra Health Services, Inc.* 1,200 29,400
----------
140,750
----------
INDUSTRIAL SERVICES - 2.6%
Input/Output Inc.* ........ 800 28,800
----------
PRODUCER MANUFACTURING - 10.8%
Applied Power Inc. Cl "A".. 1,100 31,762
Blount Inc................. 700 31,237
Brockway Standard Holdings* 2,000 29,250
Hardinge Inc.*............. 1,500 28,688
----------
120,937
----------
RETAIL TRADE - 5.6%
Borders Group Inc.*........ 2,100 30,187
Sports & Recreation Inc.*.. 2,500 32,813
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63,000
----------
UTILITIES - 2.4%
Petersburg Long
Distance Inc. ADRs*....... 4,600 27,025
----------
TOTAL COMMON STOCK
(Identified Cost $718,083) 722,575
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SHORT-TERM OBLIGATIONS -- 40.1%
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PRINCIPAL
AMOUNT
---------
United States Treasury Bill
due 7/13/95,.............. $450,000 449,228
----------
TOTAL INVESTMENTS.......... 104.6% 1,171,803
(Identified Cost $1,167,311)
OTHER ASSETS,
LESS LIABILITIES.......... (4.6) (51,018)
------ ----------
NET ASSETS................. 100.0% $1,120,785
===== ==========
* Non income producing
See notes to financial statements
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Small Cap Equity Portfolio
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STATEMENT OF ASSETS AND LIABILITIES June 30, 1995 (unaudited)
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ASSETS:
Investments at value (Note 1A) (Identified Cost, 1,167,311) ..... $1,171,803
Cash ............................................................ 19,269
Interest receivable and other assets ............................ 100
----------
Total assets ................................................ 1,191,172
----------
LIABILITIES:
Payable for investments purchased ............................... 70,387
----------
NET ASSETS ...................................................... $1,120,785
==========
REPRESENTED BY:
Paid-in capital for beneficial interests ........................ $1,120,785
==========
See notes to financial statements
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Small Cap Equity Portfolio
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STATEMENT OF OPERATIONS
For the Period June 21, 1995 (commencement of operations) to June 30, 1995
(unaudited)
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INVESTMENT INCOME:
Interest Income ....................................... $1,105
EXPENSES:
Custodian fees........................................... $ 400
Auditing fees............................................ 300
Legal fees............................................... 200
Investment advisory fees (Note 2)........................ 180
Trustee fees............................................. 100
Administrative fees (Note 3)............................. 12
Miscellaneous............................................ 100
------
Total expenses......................................... 1,292
Less expense assumed by the Administrator:............... (1,100)
Less aggregate amount waived by Investment
Adviser and Administrator (Notes 2 and 3)............... (192)
------
Net Expenses........................................... -0-
------
Net investment income.................................. 1,105
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from investment transactions.... --
Unrealized appreciation (depreciation) of investments --
Beginning of period................................... --
End of period......................................... 4,492
------
Net change in unrealized appreciation (depreciation).... 4,492
------
Net realized and unrealized gain (loss) on investments 4,492
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $5,597
======
See notes to financial statements
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Small Cap Equity Portfolio
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STATEMENT OF CHANGES IN NET ASSETS
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JUNE 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
JUNE 30, 1995
(UNAUDITED)
-----------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income......................................... $ 1,105
Net realized gain on investment transactions.................. --
Net change in unrealized appreciation (depreciation) of
investments................................................. 4,492
----------
Net increase in net assets resulting from operations...... 5,597
----------
CAPITAL TRANSACTIONS:
Proceeds from contributions................................... 1,115,188
Value of withdrawals.......................................... --
----------
Net increase in net assets from capital transactions...... 1,115,188
----------
NET INCREASE IN NET ASSETS: .................................. 1,120,785
NET ASSETS:
Beginning of period........................................... --
----------
End of period................................................. $1,120,785
----------
See notes to financial statements
<PAGE>
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Small Cap Equity Portfolio
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FINANCIAL HIGHLIGHTS
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JUNE 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
JUNE 30, 1995
(UNAUDITED)
-----------------
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (000 omitted)........................ $1,121
Ratio of expenses to average net assets........................ -0-
Ratio of net investment income to average net assets........... 4.61%*
Portfolio turnover............................................. -0-
Note: If agents of the Portfolio had not voluntarily waived a
portion of their fees for the periods indicated, the ratios would have been
as follows:
RATIOS:
Expenses to average net assets................................. 2.50%*
Net investment income to average net assets.................... 2.11%*
* Annualized
See notes to financial statements
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Small Cap Equity Portfolio
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NOTES TO FINANCIAL STATEMENTS (unaudited)
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(1) SIGNIFICANT ACCOUNTING POLICIES
Small Cap Equity Portfolio (the "Portfolio"), a separate series of The Premium
Portfolios (the "Portfolio Trust"), is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company which was organized as a trust under the laws of the State of New York.
The Declaration of Trust permits the Trustees to issue beneficial interests in
the Portfolio. The Investment Adviser of the Portfolio is Citibank N.A.
(Citibank"). Signature Financial Group (Grand Cayman), Ltd. ("SFG") acts as the
Portfolio's Administrator.
The significant accounting policies consistently followed by the Portfolio are
in conformity with generally accepted accounting principles and are as follows:
A. INVESTMENT SECURITY VALUATIONS -- Equity securities listed on securities
exchanges or reported through the NASDAQ system are valued at last sale prices.
Unlisted securities or listed securities for which last sales prices are not
available are valued at last quoted bid prices. Debt securities (other than
short-term obligations maturing in sixty days or less), are valued on the basis
of valuations furnished by pricing services which take into account appropriate
factors such as institutional-size trading in similar groups of securities,
yield, quality, coupon rate, maturity, type of issue, and other market data,
without exclusive reliance on quoted prices or exchange or over-the-counter
prices, since such valuations are believed to reflect more accurately the fair
value of the securities. Short-term obligations, maturing in sixty days or less,
are valued at amortized cost, which approximates market value. Securities, if
any, for which there are no such valuations or quotations are valued at fair
value as determined in good faith by or under guidelines established by the
Trustees.
B. INCOME -- Interest income consists of interest accrued and discount earned,
adjusted for amortization of premium or discount on long-term debt
securities when required for U.S. federal income tax purposes. Dividend income
is recorded on the ex-dividend date.
C. U.S. FEDERAL INCOME TAXES -- The Portfolio is considered a partnership under
the U.S. Internal Revenue Code. Accordingly, no provision for federal income
taxes is necessary.
D. EXPENSES -- The Portfolio bears all costs of its operations other than
expenses specifically assumed by Citibank and SFG. Expenses incurred by the
Portfolio Trust with respect to any two or more portfolios or series are
allocated in proportion to the average net assets of each portfolio, except when
allocations of direct expenses to each portfolio can otherwise be made fairly.
Expenses directly attributable to a portfolio are charged to that portfolio.
E. OTHER -- Investment transactions are accounted for on the date the
investments are purchased or sold. Realized gains and losses are determined on
the identified cost basis.
(2) INVESTMENT ADVISORY FEES
The investment advisory fee paid to Citibank, as compensation for overall
investment management services, amounted to $180 all of which was voluntarily
waived for the period June 21, 1995 (Commencement of Operations) to June 30,
1995. The investment advisory fee is computed at the annual rate of 0.75% of the
Portfolio's average daily net assets.
(3) ADMINISTRATIVE FEE
Under the terms of an Administrative Services Agreement, the administrative fee
paid to the Administrator, as compensation for overall administrative services
and general office facilities, is computed at an annual rate of 0.05% of the
Portfolio's average daily net assets. The administrative fee amounted to $12 all
of which was voluntarily waived for the period June 21, 1995 (Commencement of
Operations) to June 30, 1995. Citibank acts as Sub-Administrator and performs
such duties and receives such compensation from SFG as from time to time is
agreed to by SFG and Citibank. The Portfolio pays no compensation directly to
any Trustee or any officer who is affiliated with the Administrator, all of whom
receive remuneration for their services to the Portfolio from the Administrator
or its affiliates. Certain of the officers and a Trustee of the Portfolio are
officers or directors of the Administrator or its affiliates.
(4) PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, other than short-term obligations,
aggregated $718,083 and $-0-, respectively, for the period June 21, 1995
(Commencement of Operations) to June 30, 1995
(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation (depreciation) in value of the investment
securities owned at June 30, 1995, as computed on a federal income tax basis,
are as follows:
Aggregate cost...................... $1,167,311
==========
Gross unrealized appreciation....... $ 19,061
Gross unrealized depreciation....... (14,569)
----------
Net unrealized appreciation......... $ 4,492
==========
(6) LINE OF CREDIT
The Portfolio, along with the other Landmark Funds, entered into an ongoing
agreement with a bank which allows the Funds collectively to borrow up to $40
million for temporary or emergency purposes. Interest on the borrowings, if any,
is charged to the specific fund executing the borrowing at the base rate of the
bank. In addition, the $15 million committed portion of the line of credit
requires a quarterly payment of a commitment fee based on the average daily
unused portion of the line of credit. For the period June 21, 1995 (Commencement
of Operations) to June 30, 1995, no commitment fee was allocated to the
Portfolio. Since the line of credit was established, there have been no
borrowings.
