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Previous: STATE STREET CORP, 4, 2000-08-22 |
Next: TAB PRODUCTS CO, DEF 14A, 2000-08-22 |
STRALEM FUND
Stralem Fund
Stralem Equity Fund
FINANCIAL STATEMENTS
JUNE 30, 2000
(unaudited)
<PAGE>
<TABLE>
<CAPTION>
STRALEM FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000
(unaudited)
Stralem Stralem Equity
Fund Fund
---- ----
ASSETS
Investments, at market value
<S> <C> <C>
Common stocks $31,517,166 22,590,616
United States Government obligations 30,246,696 --
Money market mutual funds 1,149,322 4,487,055
-----------
62,913,184 27,077,671
Receivable for shares sold 14,989 --
Interest and dividends receivable 432,661 30,612
Prepaid expenses and other 3,053 26,637
----------- -----------
63,363,887 27,134,920
LIABILITIES
Payable for shares reacquired 8,000 --
Accrued expenses 163,960 99,783
----------- -----------
171,960 99,783
----------- -----------
Net assets applicable to outstanding shares of
beneficial interest $63,191,927 $27,035,137
=========== ===========
Net asset value per share - based on 3,657,871
shares (Fund) and 261,596 shares (Equity Fund)
of beneficial interest outstanding
(offering price and redemption price) $17.28 $103.35
=========== ===========
See notes to financial statements
</TABLE>
2
<PAGE>
STRALEM FUND
PORTFOLIO OF INVESTMENTS IN SECURITIES
JUNE 30, 2000
(unaudited)
Number of Shares Market Value
---------------- ------------
Common Stocks (50.09%)
Computer and Peripherals (5.96%)
14,900 Hewlett-Packard Co. $1,860,636
*20,800 Sun Microsystems 1,891,500
Computer Software and Service (8.29%)
30,100 Automatic Data Processing 1,612,231
*14,800 Microsoft Corp. 1,184,000
*28,800 Oracle Corp. 2,421,000
Electrical Equipment (5.31%)
27,400 Emerson Electric Co. 1,654,275
31,800 General Electric Company 1,685,400
Insurance (1.53%)
20,000 MBIA, Inc. 963,750
Home Appliance (1.87%)
25,200 Whirlpool Corp. 1,174,950
Medical Supplies (5.81%)
17,200 Johnson & Johnson 1,752,250
38,200 Medtronic Inc. 1,902,838
Office Equipment and Supplies (1.76%)
53,300 Xerox Corp. 1,105,975
Personal Care (2.24%)
24,200 Bristol-Myers Squibb 1,409,650
Pharmaceuticals (2.70%)
22,200 Merck & Co. Inc. 1,701,075
Precision Instrument (.67%)
* 5,682 Agilent Technologies, Inc. 419,048
Restaurant (2.06%)
39,400 McDonalds Corp. 1,297,738
Retail Stores (3.91%)
32,600 The Gap 1,018,750
25,000 Wal-Mart Stores, Inc. 1,440,625
Semiconductor (3.83%)
18,000 Intel Corp. 2,406,375
Telecommunications Equipment (2.70%)
28,700 Lucent Technologies 1,700,475
Telecommunications Service (1.45%)
18,000 Bell Atlantic Corp. 914,625
------------
(cost $14,355,377) 31,517,166
============
3
<PAGE>
PORTFOLIO OF INVESTMENTS IN SECURITIES (continued)
JUNE 30, 2000
(unaudited)
Face Value Market Value
---------- ------------
United States Government obligations (48.08%)
Treasury bonds and notes (44.12%)
$ 2,000,000 February 15, 2006; 5.625% $ 1,940,000
$ 13,000,000 May 15, 2009; 5.50% 12,439,375
$ 2,500,000 November 15, 2016; 7.5% 2,817,969
$ 4,500,000 August 15, 2022; 7.25% 5,055,469
$ 6,000,000 August 15, 2028; 5.50% 5,503,125
Treasury bills (3.96%)
$ 1,500,000 July 27, 2000 1,498,271
$ 1,000,000 August 17, 2000 992,487
------------
(cost $28,883,025) 30,246,696
------------
Money market mutual funds (1.83%)
Short-Term Income Fund 1,149,322
------------
$ 62,913,184
============
* Nonincome producing
See notes to financial statements
4
<PAGE>
STRALEM EQUITY FUND
PORTFOLIO OF INVESTMENTS IN SECURITIES
JUNE 30, 2000
(unaudited)
Number of Shares Market Value
---------------- ------------
Common stocks (83.43%)
Computer and Peripherals (7.58%)
7,700 Hewlett-Packard Co. $ 961,538
*12,000 Sun Microsystems 1,091,250
Computer Software and Service (7.36%)
*10,400 Microsoft Corp. 832,000
*13,800 Oracle Corp. 1,160,063
Electrical Equipment (7.22%)
16,300 Emerson Electric Co. 984,113
18,300 General Electric Company 969,900
Electric Utility (central) (2.45%)
32,900 Northern States Power Co. 664,169
Electric Utility (East) (11.64%)
20,000 Carolina Power & Light Energy, Inc. 638,750
21,000 Consolidated Edison, Inc. 622,125
20,600 Constellation Energy Group, Inc. 670,788
22,300 GPU, Inc. 603,494
26,400 Southern Co. 615,450
Insurance (3.42%)
19,200 MBIA, Inc. 925,200
Home Appliance (3.03%)
17,600 Whirlpool Corp. 820,600
Medical Supplies (8.66%)
12,900 Johnson & Johnson 1,314,188
20,700 Medtronic Inc. 1,031,119
Office Equipment and Supplies (3.44%)
44,900 Xerox Corp. 931,675
Personal Care (3.51%)
16,300 Bristol-Myers Squibb 949,475
Petroleum (4.85%)
7,700 Chevron Corp. 653,056
12,400 Texaco, Inc. 660,300
Pharmaceuticals (4.07%)
14,400 Merck & Co. Inc. 1,103,400
Precision Instrument (.80%)
*2,955 Agilent Technologies Inc. 217,931
Restaurant (3.35%)
27,500 McDonalds Corp. 905,781
----------
subtotal 19,326,365
----------
5
<PAGE>
STRALEM EQUITY FUND
PORTFOLIO OF INVESTMENTS IN SECURITIES (continued)
JUNE 30, 2000
(unaudited)
Number of Shares Market Value
---------------- ------------
Balance brought forward $19,326,365
Retail Stores (6.15%)
21,800 The Gap 681,250
17,100 Wal-Mart Stores, Inc. 985,388
Semiconductor (3.85%)
7,800 Intel Corp. 1,042,763
Thrift (2.05%)
13,700 Federal Home Loan Mortgage Corp. 554,850
----------
(cost $22,033,453) 22,590,616
----------
Money Market Mutual Funds (16.57%)
Short-term Income Fund 4,487,055
-----------
$27,077,671
===========
*Nonincome producing
See notes to financial statements
6
<PAGE>
STRALEM FUND
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2000
(unaudited)
STRALEM STRALEM
FUND EQUITY FUND *
---- -----------
Investment income:
Interest $ 948,821 $ 80,766
Dividends 151,397 155,810
------------ ----------
1,100,218 236,576
------------ ----------
Expenses:
Investment advisory 303,184 155,656
Legal fees 13,510 26,072
Auditing fees 12,194 9,683
Administration expenses 12,376 ---
Directors' fees 806 674
Taxes 1,456 1,312
Miscellaneous 5,355 4,073
------------ ----------
348,881 197,470
------------ ----------
Net investment income 751,337 39,106
------------ ----------
Net realized gain from security
transactions 5,738,121 ---
Net increase (decrease)
in unrealized appreciation of
investments (3,778,948) 557,163
------------ ----------
Net gain on investments 1,959,173 557,163
------------ ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 2,710,510 $ 596,269
============ =========
* Period from January 18, 2000 (Commencement of Operations) to June 30, 2000
See notes to financial statements
7
<PAGE>
<TABLE>
<CAPTION>
STRALEM FUND
STATEMENT OF CHANGES IN NET ASSETS
STRALEM STRALEM
FUND EQUITY
---- ------
FUND *
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED
JUNE 30, 2000 DECEMBER 31, 1999 JUNE 30, 2000
-------------- ----------------- -------------
(unaudited) (unaudited)
<S> <C> <C> <C>
Operations: ____
Net investment income $751,337 $1,246,260 $39,106
Net realized gain from security transactions 5,738,121 1,943,052
Net increase (decrease) in unrealized
appreciation of investments (3,778,948) 5,830,174 557,163
----------- --------- -------
2,710,510 9,019,486 596,269
---------- ---------- -------
____ ____
____ ____
Distributions to shareholders:
Investment income (1,234,581)
Realized gains ---------- (1,943,052)
------------ ----------
---------- (3,177,633) ----------
-----------
Capital share transactions: ____
Proceeds from shares sold 4,972,656 13,173,478 26,538,875
Proceeds from reinvestment of dividends 2,205,366 3,298,315 ____
Cost of shares redeemed (12,489,725) (5,182,756) (100,007)
------------- ----------- ---------
(5,311,703) 11,289,037 26,438,868
----------- ---------- ----------
____
Increase (decrease) in net assets (2,601,193) 17,130,890 27,035,137
Net assets at January 1 65,793,120 48,662,230
---------- ----------- ----------
Net assets at end of period $63,191,927 $65,793,120 $27,035,137
=========== =========== ===========
Accumulated undistributed net investment
income at end of period $ 928,757 $ 177,420 $ 39,106
=========== =========== ===========
Number of Trust Shares: ____
Sold 304,142 850,551 262,546
Issued on reinvestment of dividends 133,902 217,567
Redeemed ( 752,214) ( 309,443) ( 950)
---------- ------------ -----------
Net increase (decrease) in shares outstanding 314,170 758,675 261,596
========== ============ ===========
*Period from January 18, 2000 (Commencement of Operations) to June 30, 2000
See notes to financial statements
</TABLE>
8
<PAGE>
STRALEM FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(unaudited)
NOTE A - ORGANIZATION
Stralem Fund (the "Fund") and Stralem Equity Fund (the "Equity Fund") are
separate operating series of Stralem Fund (the "Trust"), a Delaware business
trust formed under the laws of the State of Delaware with authority to issue an
unlimited number of shares of beneficial interest. Stralem Equity Fund commenced
operations on January 18, 2000.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) Security valuation:
Investment in securities traded on a national exchange are valued at the
last reported sales price on the last business day of the period.
Securities traded over-the-counter are valued on the basis of the average
of the last reported bid prices. United States Treasury bonds, notes and
bills are valued at market value.
(2) Federal income taxes:
Each Fund intends to qualify as a regulated investment company as defined
under the Internal Revenue Code and intends to distribute to its
shareholders substantially all of its taxable income and capital gains.
Therefore only nominal income tax provisions are required.
(3) Other:
Security transactions are accounted for on a trade date basis and
dividend income is recorded on the ex-dividend date. Dividends to
shareholders are recorded on the ex-dividend date.
NOTE C - Investment Advisory AgreementS
The Fund has an investment advisory contract with Stralem & Company Incorporated
(the "Investment Advisor") that provides for a quarterly fee of 1/4 of 1%
(equivalent to approximately 1% annually) of the average weekly net asset value
of the Fund for the first $50,000,000 of net asset value decreasing to quarterly
rate .1875 of 1% for the next $50,000,000 and .125 of 1% thereafter (equivalent
to approximately 3/4 of 1% and 1/2 of 1%, respectively, annually). In addition,
the Fund reimburses the Investment Advisor for its expenses attributable to the
administration of the Fund, including a proportionate part of the compensation
of the employees of the Investment Advisor who perform services, other than
investment advisory services, for the Fund. Such reimbursement is limited by the
contract to $25,000 per annum.
The Equity Fund has an investment advisory contract with the Investment Advisor
that provides for a quarterly fee of 1/4 of 1.50% (equivalent to approximately
1.50% annually) of the average weekly net asset value of the Fund for the first
$100,000,000 of net asset value decreasing to quarterly rate .3125 of 1% for the
next $100,000,000 and .25 of 1% thereafter (equivalent to approximately 1.25%
and 1%, respectively, annually). In addition, the Equity Fund reimburses the
Investment Advisor for its expenses attributable to the administration of the
Fund, including a proportionate part of the compensation of the employees of the
Investment Advisor who perform services, other than investment advisory
services, for the Equity Fund. The Investment Advisor waived such reimbursement
for the current year 2000.
Certain officers and a director of the Trust are also officers of the Investment
Advisor.
9
<PAGE>
STRALEM FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(unaudited)
NOTE C - Other Matters
Fund Equity Fund
---- -----------
(1) Unrealized appreciation at June 30, 2000 $ 19,740,577 $ 1,638,631
Unrealized depreciation at June 30, 2000 (1,215,117) (1,081,468)
------------ -----------
$ 18,525,460 $ 557,163
============ ===========
(2) During the period ended June 30, 2000, there were purchase and sale
transactions (excluding short-term securities) as follows:
Purchases Sales
--------- -----
Fund $17,200,070 $19,105,602
Equity Fund 22,033,402 0
10
<PAGE>
<TABLE>
<CAPTION>
STRALEM FUND
CONDENSED FINANCIAL INFORMATION
(for a share outstanding for the six months ended June 30, 2000 and throughout the year 1999)
STRALEM FUND STRALEM EQUITY FUND *
------------ ---------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED
June 30, 2000 December 31, 1999 June 30, 2000
------------- ----------------- -------------
(unaudited) (unaudited)
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 16.56 $ 15.14 $100.00
--------- --------- -------
Income from investment operations
Net investment income .21 .32 .19
Net gains on securities .51 1.90 3.16
--------- --------- -------
Total from investment income .72 2.22 3.35
--------- --------- -------
Less distributions: __ __
Dividends from net investment income __ (.31) __
Dividends from capital gains __ (.49) __
Total distributions (.80) -------
-------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 17.28 $ 16.56 $103.35
======== ======== =======
Total return 4.35% 14.69% 3.35%
Ratios/supplemental data:
Net assets, end of period (in thousands) $63,192 $65,793 $27,035
Ratio of expenses to average net assets 1.08% (1) 1.35% 1.85% (1)
Ratio of net investment income to average
net assets 2.33% (1) 1.97% .37% (1)
Portfolio turnover rate 58.00% (1) 20.00% 0% (1)
</TABLE>
* Period from January 18, 2000 (Commencement of Operations) to June 30, 2000
(1) Annualized
See notes to financial statements
11
<PAGE>
STRALEM FUND
OFFICERS
PHILIPPE E. BAUMANN, PRESIDENT
PHILIPPE LABAUNE, VICE PRESIDENT
HIRSCHEL B. ABELSON, SECRETARY & TREASURER
JOANN PACCIONE, ASSISTANT TREASURER/SECRETARY
TRUSTEES
PHILIPPE E. BAUMANN
KENNETH D. PEARLMAN
MICHAEL T. RUBIN
JEAN PAUL RUFF
INVESTMENT ADVISOR
STRALEM & COMPANY INCORPORATED
405 PARK AVENUE
NEW YORK, NEW YORK 10022
OFFICE
405 PARK AVENUE
NEW YORK, NEW YORK 10022
TELEPHONE (212) 888-8123
FAX (212) 888-8152
This report is prepared for the information of the Fund's shareholders. It is
not authorized for distribution to prospective investors in the Fund unless
it is preceded or accompanied by a current prospectus which describes the
Fund's objectives, policies and other important information.
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