<PAGE>
[LOGO]
<TABLE>
<S> <C>
Growth/Value Fund Shareholder Inquiries:
Aggressive Growth Fund Forum Financial Corp.
Intermediate Bond Fund P.O. Box 446
Kentucky Tax-Free Fund Portland, Maine 04112
Money Market Fund 207-879-0001
800-811-8258
</TABLE>
<TABLE>
<S> <C>
- -----------------------------------------
April 12, 1996
</TABLE>
Dear Shareholder:
Today there are about as many mutual funds as there are publicly traded common
stocks. Total assets invested in funds now exceed $2.75 trillion. In the past
ten years, the growth and diversity of funds has been eye-catching. In the wake
of this growth, why launch the Trans Adviser Funds, yet another of many?
Most successful mutual fund endeavors begin with a sound investment strategy. We
believe that Trans Adviser has the right combination of targeted investment
strategies divided among its five individual funds. The Trans Adviser Funds can
therefore provide investors with ample asset allocation vehicles for their
investment objectives.
In our view, a satisfied shareholder is one who attains realistic investment
objectives within the limitations of rising and falling capital markets. Trans
Adviser seeks to achieve these objectives with an investment management team
that produces quality fundamental research and converts its research conclusions
into the management of each fund. Our money managers have a combination of
qualifications, experience, and commitment that is second to none among all
mutual fund manager advisors. Economic, sector, and company analysis are an
integral part of the process that we believe is capable of yielding competitive,
risk-adjusted returns without undue risk.
We are pleased to present the semi-annual report for Trans Adviser Funds, Inc.
for the period ending February 29, 1996. We appreciate this opportunity to
review the achievements of our initial operations. We believe the best possible
shareholder is a well-informed shareholder. We therefore encourage you to review
this report. Should you have any questions regarding your account, please
contact your broker-dealer, trust department, or our shareholder servicing
agent, Forum Financial Corp. We also invite you to contact a representative of
the funds at our Louisville, Kentucky or Nashville, Tennessee offices.
Today, the assets invested in the Trans Adviser family of funds exceed $100
million. The Funds are distributed through nine independent broker dealers. In
the coming months, we look forward to continued growth, and will strive for
superior performance for your investment. Thank you for choosing to invest in
Trans Adviser Funds and for the support you have shown the Trans Adviser family
of mutual funds in its young life.
[LOGO]
[LOGO]
<TABLE>
<S> <C>
GORDON B. DAVIDSON THOMAS A. TRANTUM
Chairman of the Board President
</TABLE>
<PAGE>
GROWTH/VALUE FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ---------- ---------------------------------- ------------
<C> <S> <C>
COMMON STOCK (88.4%):
AMUSEMENT AND RECREATION SERVICES (7.0%):
7,500 Harrah's Entertainment, Inc.*..... $ 203,437
2,000 ITT Corporation*.................. 120,750
7,500 Promus Hotel Corporation*......... 195,000
------------
519,187
------------
AUTOMOTIVE DEALERS AND GASOLINE SERVICE
STATIONS (2.6%):
7,500 Autozone, Inc.*................... 193,125
------------
BUSINESS SERVICES (4.1%):
10,000 ADT Ltd.*......................... 147,500
3,000 Sun Microsystems, Inc.*........... 157,500
------------
305,000
------------
CHEMICALS AND ALLIED PRODUCTS (6.4%):
2,000 Bristol-Myers Squibb Company...... 170,250
2,000 Merck & Company, Inc.............. 132,500
3,000 Schering-Plough Corporation....... 168,375
------------
471,125
------------
COMMUNICATIONS (3.5%):
7,500 Tele-Communications, Inc.*........ 157,500
5,000 US West Media Group*.............. 104,375
------------
261,875
------------
DEPOSITORY INSTITUTIONS (11.0%):
3,500 BankAmerica Corporation........... 249,375
7,000 First Chicago NBD Corporation..... 303,625
4,000 First Tennessee National
Corporation..................... 126,000
5,000 Signet Banking Corporation........ 130,000
------------
809,000
------------
EATING AND DRINKING PLACES (2.5%):
3,000 McDonald's Corporation............ 150,000
2,000 Morrison Restaurants, Inc......... 33,500
------------
183,500
------------
ELECTRICAL EQUIPMENT (2.9%):
5,000 AMP, Inc.......................... 213,125
------------
FOOD STORES (1.3%):
2,500 Kroger Company*................... 92,812
------------
FOOD AND KINDRED PRODUCTS (1.1%):
15,000 Monterey Pasta Company*........... 78,750
------------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ---------- ---------------------------------- ------------
<C> <S> <C>
GENERAL MERCHANDISE STORES (2.5%):
4,000 Sears, Roebuck and Company........ $ 181,500
------------
HEALTH SERVICES (10.8%):
5,000 Living Centers of America, Inc.*.. 202,500
3,000 Columbia HCA Healthcare
Corporation..................... 164,250
2,345 Healthsouth Rehabilitation
Corporation*.................... 82,075
1,000 Quorum Health Group, Inc.*........ 24,625
6,000 Tenet Healthcare Corporation*..... 134,250
5,000 Vencor, Inc.*..................... 186,875
------------
794,575
------------
INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER
EQUIPMENT (2.3%):
8,000 Western Digital Corporation*...... 167,000
------------
INSURANCE CARRIERS (1.4%):
2,000 ITT Hartford Group, Inc........... 103,000
------------
MEASURING, ANALYZING, AND CONTROLLING
INSTRUMENTS (2.9%):
3,000 Eastman Kodak Company............. 214,500
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.7%):
2,000 ITT Industries, Inc............... 52,500
------------
MOTION PICTURES (1.8%):
2,000 The Walt Disney Company........... 131,000
------------
NONDEPOSITORY CREDIT INSTITUTIONS (4.6%):
3,000 American Express Company.......... 138,000
7,500 Capital One Financial
Corporation..................... 200,625
------------
338,625
------------
PHARMECEUTICAL PREPARATIONS (2.7%):
2,000 American Home Products
Corporation..................... 197,000
------------
TRANSPORT EQUIPMENT (2.8%):
2,500 Boeing Company.................... 202,812
------------
TRANSPORTATION BY AIR (3.3%):
8,000 Southwest Airlines Company........ 246,000
------------
</TABLE>
See notes to financial statements. 2 TRANS ADVISER FUNDS, INC.
<PAGE>
GROWTH/VALUE FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- --------- ------------------------------ ----------
WHOLESALE TRADE--DURABLE GOODS (10.2%):
<C> <S> <C>
4,000 Arrow Electronics, Inc.*...... $ 197,000
4,000 Avnet, Inc.................... 199,500
2,500 Lockheed Martin Corporation... 190,625
7,000 Sybron International
Corporation-Wisconsin*...... 162,750
----------
749,875
----------
Total Common Stock
(cost $5,914,343)...................... 6,505,886
----------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- --------- ------------------------------ ----------
<C> <S> <C>
CASH MANAGEMENT ACCOUNTS (11.6%):
427,717 1784 U.S. Treasury Money
Market Fund................. $ 427,717
427,084 Forum Daily Assets Treasury
Fund........................ 427,084
----------
Total Cash Management Accounts
(cost $854,801)........................ 854,801
----------
Total Investments (100.0%)
(cost $6,769,144)...................... $7,360,687
----------
----------
</TABLE>
*Non-income producing security
See notes to financial statements. 3 TRANS ADVISER FUNDS, INC.
<PAGE>
AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ---------- ---------------------------------- ------------
<C> <S> <C>
COMMON STOCK (86.6%):
AMUSEMENT AND RECREATION SERVICES (9.3%):
3,000 Harrah's Entertainment, Inc.*..... $ 81,375
4,000 Promus Hotel Corporation*......... 104,000
------------
185,375
------------
BUSINESS SERVICES (9.1%):
5,000 Cerplex Group*.................... 31,250
2,000 Landmark Graphics Corporation*.... 45,000
2,000 Sun Microsystems, Inc.*........... 105,000
------------
181,250
------------
COMMUNICATIONS (2.1%):
2,000 US West Media Group*.............. 41,750
------------
DEPOSITORY INSTITUTIONS (6.7%):
1,000 BankAmerica Corporation........... 71,250
2,000 First Tennessee National
Corporation..................... 63,000
------------
134,250
------------
EATING AND DRINKING PLACES (4.9%):
2,000 Quality Dining, Inc.*............. 57,000
5,000 Shoney's, Inc.*................... 41,875
------------
98,875
------------
FOOD STORES (0.9%):
500 Kroger Company*................... 18,562
------------
FOOD AND KINDRED PRODUCTS (1.3%):
5,000 Monterey Pasta Company*........... 26,250
------------
GENERAL MERCHANDISE STORES (2.6%):
2,000 Consolidated Stores
Corporation*.................... 52,000
------------
HEALTH SERVICES (12.5%):
2,000 Living Centers of America, Inc.*.. 81,000
2,000 Quorum Health Group, Inc.*........ 49,250
2,000 Tenet Healthcare Corporation*..... 44,750
2,000 Vencor, Inc.*..................... 74,750
------------
249,750
------------
HOLDING AND OTHER INVESTMENT OFFICES (1.5%):
1,000 Felcor Suite Hotels, Inc.......... 30,625
------------
HOME FURNITURE, FURNISHINGS, AND EQUIPMENT
STORES (2.5%):
2,000 Movie Gallery, Inc.*.............. 49,500
------------
<CAPTION>
SECURITY
SHARES DESCRIPTION VALUE
- ---------- ---------------------------------- ------------
<C> <S> <C>
INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER
EQUIPMENT (6.6%):
6,000 Smart Modular Technologies*....... $ 90,750
2,000 Western Digital Corporation*...... 41,750
------------
132,500
------------
MISCELLANEOUS RETAIL (1.7%):
2,000 Friedman's, Inc. Class A*......... 33,500
------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.7%):
2,000 Capital One Financial
Corporation..................... 53,500
------------
OIL AND GAS EXTRACTION (5.6%):
10,000 Pride Petroleum Services, Inc.*... 111,875
------------
PROFESSIONAL SERVICES(5.7%):
6,000 SCB Computer Technology, Inc.*.... 114,000
------------
TRANSPORTATION (3.0%):
3,000 United Transnet Inc.*............. 60,375
------------
TRANSPORTATION BY AIR (3.1%):
2,000 Southwest Airlines Company........ 61,500
------------
TRANSPORTATION SERVICES (2.5%):
5,000 Simon Transportation Services*.... 50,000
------------
WHOLESALE TRADE--DURABLE GOODS (2.3%):
2,000 Sybron International
Corporation-Wisconsin*.......... 46,500
------------
Total Common Stock
(cost $1,590,243)........................... 1,731,937
------------
CASH MANAGEMENT ACCOUNTS (13.4%):
133,497 1784 U.S. Treasury Money Market
Fund............................ 133,497
133,873 Forum Daily Assets Treasury
Fund............................ 133,873
------------
Total Cash Management Accounts
(cost $267,370)............................. 267,370
------------
Total Investments (100.0%)
(cost $1,857,613)........................... $ 1,999,307
------------
------------
</TABLE>
*Non-income producing security
See notes to financial statements. 4 TRANS ADVISER FUNDS, INC.
<PAGE>
INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (10.3%):
$ 300,000 Federal Home Loan Mortgage
Corporation, Series 1072,
Class G, 7.00%, due
5/15/06...................... $ 304,658
800,000 Federal Home Loan Mortgage
Corporation, Series 1720,
Class E, 7.50%, due
12/15/09..................... 816,423
-------------
Total Collateralized Mortgage Obligations
(cost $1,128,875).......................... 1,121,081
-------------
DISCOUNT NOTES--AGENCY (13.5%):
76,000 Federal Farm Credit Bank, 5.24%
yield, due 3/1/96............ 76,000
302,000 Federal Farm Credit Bank, 5.24%
yield, due 3/5/96............ 301,827
850,000 Federal Home Loan Mortgage
Corporation, 5.42% yield, due
3/1/96....................... 850,000
245,000 Federal National Mortgage
Association, 5.31% yield, due
3/6/96....................... 244,822
-------------
Total Discount Notes--Agency
(cost $1,472,649).......................... 1,472,649
-------------
FIXED RATE BONDS--CORPORATE (57.9%):
686,000 Alabama Power Company, 8.30%,
due 7/1/22................... 706,825
400,000 Anheuser Busch Companies, Inc.,
7.00%, due 9/1/05............ 406,071
140,000 Anheuser-Busch Companies, Inc.,
8.75%, due 12/01/99.......... 152,870
250,000 B.P. America, 6.50%, due
12/15/99..................... 252,470
250,000 Baltimore Gas & Electric
Company, 5.125%, due
4/15/96...................... 249,854
50,000 Berkley W.R. Corporation,
9.875%, due 5/15/08.......... 61,325
55,000 The Chase Manhattan
Corporation, 8.00%, due
5/15/04...................... 57,110
135,000 Citicorp, 10.50%, due 2/1/16... 137,439
140,000 Commonwealth Edison Company,
9.50%, due 5/1/16............ 147,285
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
FIXED RATE BONDS--CORPORATE, CONTINUED:
$ 250,000 Florida Power & Light Company,
7.875%, due 1/1/07........... $ 256,681
160,000 Florida Power & Light Company,
8.00%, due 8/25/22........... 166,109
100,000 Ford Motor Credit Company,
5.83%, due 6/29/98........... 99,876
160,000 Ford Motor Credit Company,
7.50%, due 1/15/03........... 168,089
160,000 GTE of Southeast, 8.00%, due
12/3/01...................... 162,792
69,000 Georgia Power Company First
Mortgage Bonds, 7.95%, due
2/1/23....................... 69,866
250,000 Greyhound Financial
Corporation, 7.82%, due
1/27/03...................... 264,024
300,000 Inco Ltd., 9.60%, due 6/15/22.. 333,343
75,000 Jersey Central Power & Light
Company, 9.20%, due 7/1/21... 84,962
46,000 Kaiser Permanente, 9.55%, due
7/15/05...................... 55,434
56,000 Kraft Inc., 8.50%, due
2/15/17...................... 58,427
200,000 Michigan Bell Telephone
Company, 6.375%, due
2/1/05....................... 196,051
60,000 Pacific Gas & Electric Company,
6.625%, due 6/1/00........... 59,778
419,000 Pennsylvania Power & Light
Company, 9.25%, due
10/1/19...................... 462,579
120,000 Public Service Electric and Gas
Company, 8.75%, due
11/1/21...................... 130,044
35,000 Rohm & Haas Company, 9.80%, due
4/15/20...................... 44,780
50,000 Sara Lee Corporation, 8.75%,
due 5/15/16.................. 52,517
200,000 Southern California Edison,
7.375%, due 12/15/03......... 204,999
85,000 Southwestern Public Service
Company, 8.20%, due
12/1/22...................... 90,789
</TABLE>
See notes to financial statements. 5 TRANS ADVISER FUNDS, INC.
<PAGE>
INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
FIXED RATE BONDS--CORPORATE, CONTINUED:
<C> <S> <C>
$ 60,000 U.S. Leasing International,
6.625%, due 5/15/03.......... $ 60,082
150,000 US Life Corporation, 9.15%, due
6/15/99...................... 151,292
130,000 Union Electric Company, 8.00%,
due 12/15/22................. 136,143
500,000 Unocal Corporation, 6.70%, due
10/15/07..................... 492,086
250,000 Washington Gas Light Company,
6.50%, due 1/14/97........... 252,057
65,000 Wisconsin Electric Power
Company, 7.75%, due
1/15/23...................... 66,250
-------------
Total Fixed Rate Bonds--Corporate
(cost $6,314,487).......................... 6,290,299
-------------
FIXED RATE NOTES--AGENCY (13.3%):
500,000 Federal Home Loan Bank, 6.62%,
due 12/6/00.................. 497,542
450,000 Federal Home Loan Bank, 8.25%,
due 4/4/05................... 451,262
150,000 Federal National Mortgage
Association, 6.17%, due
12/2/03...................... 144,793
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
FIXED RATE NOTES--AGENCY, CONTINUED:
$ 265,000 Tennessee Valley Authority,
6.875%, due 1/15/02.......... $ 268,887
50,000 Tennessee Valley Authority,
6.875%, due 8/1/02........... 50,620
30,000 Tennessee Valley Authority,
8.05%, due 7/15/24........... 29,851
-------------
Total Fixed Rate Notes--Agency
(cost $1,452,300).......................... 1,442,955
-------------
TREASURY NOTES (4.7%):
500,000 U.S. Treasury Notes, 6.50%, due
8/15/05...................... 511,875
-------------
Total Treasury Notes
(cost $510,156)............................ 511,875
-------------
CASH MANAGEMENT ACCOUNTS (0.3%):
35,761 Forum Daily Assets Treasury
Fund......................... 35,763
-------------
Total Cash Management Accounts
(cost $35,763)............................. 35,763
-------------
Total Investments (100.0%)
(cost $10,914,230)......................... $ 10,874,622
-------------
-------------
</TABLE>
See notes to financial statements. 6 TRANS ADVISER FUNDS, INC.
<PAGE>
KENTUCKY TAX-FREE FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
MUNICIPAL BONDS (100.0%):
AIRPORT REVENUE (5.5%):
$ 500,000 Kenton County Airport Revenue,
8.75%, due 3/1/15............ $ 533,680
50,000 Lexington-Fayette Urban County,
Kentucky Airport Corporation
First Mortgage Revenue,
7.75%, due 4/1/08............ 55,125
435,000 Louisville & Jefferson County,
Kentucky Airport Authority
Revenue, 5.25%, due 7/1/09... 427,931
-------------
Total Airport Revenue
(cost $1,011,246).......................... 1,016,736
-------------
ECONOMIC DEVELOPMENT REVENUE (15.9%):
100,000 Covington, Kentucky Municipal
Properties Corporation
Revenue, 8.25%, due 8/1/10... 112,375
360,000 Kentucky State Property &
Building Community Revenue,
5.05%, due 5/1/05............ 366,750
65,000 Kentucky State Property &
Building Community Revenue,
6.00%, due 8/1/97............ 67,031
70,000 Kentucky State Property &
Building Community Revenue,
6.50%, due 12/1/99........... 75,425
455,000 Kentucky State Property &
Building Project #51, 6.30%,
due 8/1/01................... 494,812
100,000 Kentucky State Turnpike
Authority Economic
Development Revenue, 6.50%,
due 7/1/07................... 113,875
245,000 Kentucky State Turnpike
Authority Economic
Development Revenue, 7.25%,
due 5/15/10.................. 275,931
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
ECONOMIC DEVELOPMENT REVENUE, CONTINUED:
$ 150,000 Kentucky State Turnpike
Authority Economic
Development Revenue,
Revitalization Projects,
7.00%, due 5/15/99........... $ 163,125
750,000 Louisville & Jefferson County,
Kentucky Visitors &
Convention Commission,
6.625%, due 7/1/15........... 727,500
500,000 State of Kentucky Property &
Buildings Common Revenue,
Project #57, AMBAC insured,
5.50%, due 11/1/15........... 498,750
50,000 State of Kentucky Property &
Buildings Common Revenue,
Project #27, Prerefunded
11/1/96 at 102,
collateralized in U.S.
Government securities, 7.10%,
due 5/1/08................... 52,181
-------------
Total Economic Development Revenue
(cost $2,940,928).......................... 2,947,755
-------------
EDUCATION FACILITIES REVENUE (18.5%):
350,000 Fayette County Kentucky School
Building Revenue, 5.25%, due
10/1/09...................... 348,250
365,000 Fayette County Kentucky School
Building Revenue, 5.25%, due
10/1/10...................... 359,981
200,000 Hopkins County, Kentucky School
District Finance Corporation
School Building Revenue,
5.70%, due 6/1/06............ 211,750
495,000 Jefferson County, Kentucky
School District Finance
Corporation School Building
Revenue, 4.875%, due
1/1/11....................... 467,775
750,000 Jefferson County, Kentucky
School District Finance
Corporation School Building
Revenue, MBIA Insured, 5.00%,
due 2/1/07................... 752,812
</TABLE>
See notes to financial statements. 7 TRANS ADVISER FUNDS, INC.
<PAGE>
KENTUCKY TAX-FREE FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
EDUCATION FACILITIES REVENUE, CONTINUED:
<C> <S> <C>
$ 70,000 Lexington-Fayette Urban County
Government, Kentucky School
Buildings Revenue, 6.80%, due
10/1/01...................... $ 78,050
480,000 Oldham County, Kentucky School
District Finance Corporation
School Building, 5.50%, due
7/1/15....................... 393,000
785,000 Pendleton County, Kentucky
School District Finance
Corporation School Building
Revenue, 5.05%, 12/1/15...... 735,938
70,000 University of Louisville,
Kentucky Revenue, Series G,
6.25%, due 5/1/99............ 72,887
-------------
Total Education Facilities Revenue
(cost $3,417,998).......................... 3,420,443
-------------
GENERAL OBLIGATIONS--BOND BANK (1.6%):
305,000 Fern Creek, Kentucky Fire
Protection District Holding
Company Revenue, 5.75%,
1/15/14...................... 297,375
-------------
Total General Obligations--Bond Bank
(cost $295,140)............................ 297,375
-------------
HEALTH CARE REVENUE (18.1%):
1,035,000 Kentucky Economic Development
Finance Authority Hospital
Revenue, Baptist Hospital,
7.20%, due 9/1/99............ 1,157,906
1,600,000 Kentucky Economic Development
Finance Authority Health
Facilities Revenue, The
Medical Center at Scottsville
Project, Series A, 9.00%, due
11/1/24...................... 1,704,000
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
HEALTH CARE REVENUE, CONTINUED:
$ 500,000 Kentucky Economic Development
Finance Authority Hospital
Facilities Revenue, Baptist
Healthcare System Project,
MBIA insured, 5.00%, due
8/15/24...................... $ 453,750
40,000 McCracken County, Kentucky
Revenue, Lourdes Hospital
Inc., 6.00%, due 11/1/96..... 40,679
-------------
Total Health Care Revenue
(cost $3,326,574).......................... 3,356,335
-------------
HOUSING REVENUE (11.5%):
750,000 Boone County, Kentucky Public
Properties Corporation
Revenue, 5.15%, due
12/1/12...................... 725,625
475,000 Boone County, Kentucky Public
Properties Corporation
Revenue, 5.125%, due
12/1/10...................... 461,938
300,000 Florence, Kentucky Public
Property Corporation, 5.20%,
due 3/1/13................... 288,375
270,000 Greater Kentucky Housing
Assistance Corporation
Mortgage Revenue, FHA/
Section 8 Assisted Project,
Series A, MBIA/FHA insured,
6.25%, due 7/1/22............ 272,025
100,000 Jefferson County, Kentucky
Capital Projects Corporation
Revenue, 0.000%, due
8/15/99...................... 85,249
190,000 Kentucky Housing Corporation
Housing Revenue, Series B,
5.75%, due 8/1/05............ 191,187
100,000 Kentucky State Property &
Building Commission Revenue
Project 30, 7.00%, 12/1/96... 102,593
-------------
Total Housing Revenue
(cost $2,127,618).......................... 2,126,992
-------------
</TABLE>
See notes to financial statements. 8 TRANS ADVISER FUNDS, INC.
<PAGE>
KENTUCKY TAX-FREE FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
INDUSTRIAL DEVELOPMENT REVENUE (2.8%):
<C> <S> <C>
$ 500,000 Clark County, Kentucky
Industrial Building Revenue,
Southern Wood Project, 7.00%,
due 12/1/08.................. $ 515,000
-------------
Total Industrial Development Revenue
(cost $512,207)............................ 515,000
-------------
JAIL FACILITIES REVENUE (0.6%):
100,000 Kentucky Local Correctional
Facilities Construction
Authority Revenue, 7.00%, due
11/1/97...................... 107,250
-------------
Total Jail Facilities Revenue
(cost $106,574)............................ 107,250
-------------
OTHER REVENUE (10.1%):
500,000 Kentucky Higher Education
Student Loan Corporation
Insured Student Loan Revenue,
6.40%, due 6/1/00............ 536,875
350,000 Kentucky Higher Education
Student Loan Corporation
Insured Student Loan Revenue,
Series D, 6.35%, due
12/1/97...................... 361,375
300,000 Lexington-Fayette Urban County
Public Facilities Revenue,
7.90%, due 7/1/06............ 322,500
475,000 Lexington-Fayette Urban County
Government, Kentucky Sewer
System Revenue, 6.85%, due
7/1/98....................... 511,219
120,000 Puerto Rico Public Buildings
Authority Guaranteed Revenue,
Series K, collateralized in
U.S. Government securities,
6.875%, due 7/1/21........... 138,600
-------------
Total Other Revenue
(cost $1,865,134).......................... 1,870,569
-------------
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
POLLUTION CONTROL REVENUE (10.6%):
$ 295,000 Ashland, Kentucky Solid Waste
Revenue, 7.20%, callable
10/1/01 @ 102., 7.20%, due
10/1/01...................... $ 313,806
100,000 Kentucky State Pollution
Abatement & Water Reserve
Finance Authority Revenue,
Escrowed in U.S. Government
securities, 7.40%, due
8/1/02....................... 116,250
235,000 Jefferson County, Kentucky
Pollution Control Revenue,
Louisville Gas & Electric
Company PJ-A, 7.45%, due
6/15/15...................... 259,969
500,000 Kentucky Infrastructure
Authority Revenue, Wastewater
Revolving Fund Project,
Series D, 5.50%, due
6/1/12....................... 498,125
50,000 Louisville & Jefferson County,
Kentucky Sewer District,
Sewer & Drain System, 6.50%,
due 5/15/00.................. 54,063
500,000 Meade County Kentucky Pollution
Control Revenue, 6.00%, due
7/1/96....................... 503,560
200,000 Trimble County, Kentucky
Pollution Control Revenue
Unrefunded Balance Series A,
7.625%, due 11/1/20.......... 224,500
-------------
Total Pollution Control Revenue
(cost $1,597,352).......................... 1,970,273
-------------
TRANSPORTATION REVENUE (3.5%):
100,000 Kentucky State Turnpike
Authority Resource Recovery,
6.00%, due 7/1/09............ 100,125
605,000 Kentucky State Turnpike
Authority Resource Recovery,
6.125%, due 7/1/97........... 649,619
-------------
Total Transportation Revenue
(cost $751,328)............................ 749,744
-------------
</TABLE>
See notes to financial statements. 9 TRANS ADVISER FUNDS, INC.
<PAGE>
KENTUCKY TAX-FREE FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
UTILITIES REVENUE (1.3%):
<C> <S> <C>
$ 200,000 Owensboro, Kentucky Electric
Light & Power Revenue,
Deferred Current Interest,
Series A, 0.00% converting on
1/1/96 to 10.25%, due 1/1/09,
Prerefunded 1/1/00 at 102.... $ 237,753
-------------
Total Utilities Revenue
(cost $239,611)............................ 237,753
-------------
Total Investments (100.0%)
(cost $18,551,723)......................... $ 18,616,225
-------------
-------------
</TABLE>
See notes to financial statements. 10 TRANS ADVISER FUNDS, INC.
<PAGE>
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
DISCOUNT NOTES--AGENCY (47.2%):
$ 879,000 Federal Farm Credit Bank, 5.22%
yield, due 3/1/96............ $ 879,000
2,645,000 Federal Farm Credit Bank, 5.22%
yield, due 3/7/96............ 2,642,739
3,090,000 Federal Farm Credit Bank, 5.25%
yield, due 3/13/96........... 3,084,690
88,000 Federal Farm Credit Bank, 5.24%
yield, due 3/5/96............ 87,950
1,895,000 Federal Home Loan Bank, 5.23%
yield, due 3/4/96............ 1,894,190
3,500,000 Federal Home Loan Bank, 5.24%
yield, due 3/6/96............ 3,497,497
4,170,000 Federal Home Loan Mortgage
Corporation, 5.42% yield, due
3/1/96....................... 4,170,000
5,410,000 Federal National Mortgage
Association, 5.21% yield, due
3/4/96....................... 5,407,690
1,635,000 Federal National Mortgage
Association, 5.21% yield, due
3/1/96....................... 1,635,000
3,255,000 Federal National Mortgage
Association, 5.22% yield, due
3/8/96....................... 3,251,753
710,000 Federal National Mortgage
Association, 5.32% yield, due
3/6/96....................... 709,487
-------------
Total Discount Notes--Agency................. 27,259,996
-------------
FIXED RATE NOTES--AGENCY (4.3%):
500,000 Federal Home Loan Bank, 8.10%,
due 3/25/96.................. 500,764
2,000,000 Tennessee Valley Authority,
4.375%, due 3/4/96........... 1,999,773
-------------
Total Fixed Rate Notes--Agency............... 2,500,537
-------------
FIXED RATE NOTES--CORPORATE (46.7%):
100,000 Albertson's, Inc., 4.90%, due
3/22/96...................... 99,960
500,000 American Express Credit
Corporation, 7.75%, due
3/1/97....................... 511,848
100,000 American General Finance
Corporation, 5.00%, due
6/15/96...................... 99,738
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
FIXED RATE NOTES--CORPORATE, CONTINUED:
$ 70,000 Associates Corporation of North
America, 6.875%, due
1/15/97...................... $ 70,806
165,000 Associates Corporation of North
America, 7.50%, due
10/15/96..................... 166,743
55,000 Bankers Trust New York
Corporation, 7.25%, due
11/1/96...................... 55,543
190,000 Bausch & Lomb, Inc., 6.80%, due
12/12/96..................... 191,484
100,000 British Petroleum America,
Inc., 10.15%, due 3/15/96.... 100,151
140,000 Burlington Northern
Corporation, 9.00%, due
4/1/96....................... 146,561
190,000 CIGNA Corporation, 8.00%, due
9/1/96....................... 192,263
125,000 CIT Group Holdings, Inc.,
4.75%, due 3/15/96........... 124,932
300,000 CNA Financial Corporation,
8.625%, due 3/1/96........... 300,000
479,000 CSX Corporation, 8.40%, due
8/1/96....................... 484,118
80,000 Caterpillar Financial Services
Corporation, 4.94%, due
4/30/96...................... 79,862
20,000 The Chase Manhattan
Corporation, 7.875%, due
1/15/97...................... 20,381
176,000 Citicorp, 8.75%, due 11/1/96... 179,357
250,000 Commercial Credit Company,
8.00%, due 9/1/96............ 252,484
500,000 Commercial Credit Company,
8.125%, due 3/1/97........... 512,875
499,204 Conrail Inc., 5.01%, due
4/1/96....................... 498,808
1,214,000 Dean Witter Discover & Company,
5.00%, due 4/1/96............ 1,213,103
50,000 Deere & Company, 8.25%, due
6/1/96....................... 50,316
667,000 Dupont Corporation, 8.45%, due
10/15/96..................... 678,859
430,000 Exxon Capital Corporation,
7.875%, due 4/15/96.......... 431,051
</TABLE>
See notes to financial statements. 11 TRANS ADVISER FUNDS, INC.
<PAGE>
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
FIXED RATE NOTES--CORPORATE, CONTINUED:
<C> <S> <C>
$ 25,000 Farmers Group, 8.25%, due
7/15/96...................... $ 25,238
500,000 First Interstate Bancorp,
10.50%, due 3/1/96........... 500,000
150,000 Ford Capital B.V., 9.00%, due
6/1/96....................... 151,189
95,000 Ford Motor Credit Corporation,
7.875%, due 1/15/97.......... 96,837
45,000 Ford Motor Credit Corporation,
7.875%, due 10/15/96......... 45,506
492,000 Ford Motor Credit Corporation,
8.00%, due 10/1/96........... 497,906
1,040,000 Ford Motor Credit Corporation,
8.25%, due 5/15/96........... 1,045,112
527,000 Ford Motor Credit Corporation,
8.625%, due 4/15/96.......... 528,854
225,000 Ford Motor Credit Corporation,
8.875%, due 3/15/96.......... 225,270
500,000 G.E. Capital Credit
Corporation, 7.46%, due
9/27/96...................... 504,588
555,000 G.E. Capital Credit
Corporation, 8.75%, due
11/26/96..................... 566,518
789,000 General Electric Company,
7.875%, due 5/1/96........... 791,587
400,000 General Motors Acceptance
Corporation, 7.65%, due
2/4/97....................... 406,817
550,000 General Motors Acceptance
Corporation, 8.00%, due
10/1/96...................... 556,792
990,000 General Motors Acceptance
Corporation, 8.25%, due
8/1/96....................... 1,000,421
450,000 General Motors Acceptance
Corporation, 8.45%, due
8/13/96...................... 455,057
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
FIXED RATE NOTES--CORPORATE, CONTINUED:
$ 215,000 General Motors Acceptance
Corporation, 8.625%, due
7/15/96...................... $ 217,115
1,175,000 Georgia Power Company First
Mortgage Bonds, 4.75%, due
3/1/96....................... 1,175,000
100,000 Gillette Company, 4.75%, due
8/15/96...................... 99,511
50,000 Household Finance Corporation,
7.80%, due 11/1/96........... 50,706
140,000 International Lease Finance
Corporation, 6.625%, due
6/1/96....................... 140,326
25,000 International Lease Finance
Corporation, 7.90%, due
10/1/96...................... 25,317
480,000 Morgan Stanley & Co. Inc.,
8.875%, due 4/1/96........... 481,292
420,000 National City Corporation,
8.375%, due 3/15/96.......... 420,367
638,000 NationsBank Corporation, 4.75%,
due 8/15/96.................. 635,098
75,000 Northern Illinois Gas, 4.50%,
due 3/15/96.................. 74,954
50,000 Northern Illinois Gas, 5.50%,
due 2/1/97................... 49,975
135,000 Pacific Northwest Bell
Telephone Company, 7.50%, due
12/1/96...................... 136,524
255,000 PepsiCo, Inc., 7.875%, due
8/15/96...................... 257,266
1,050,000 Philip Morris Companies, Inc.,
8.875%, due 7/1/96........... 1,060,418
904,000 Philip Morris Corporation,
8.75%, due 12/1/96........... 923,476
250,000 Quaker Oats Company, 8.85%, due
11/15/96..................... 254,459
370,000 Ralston Purina Company, 9.00%,
due 6/15/96.................. 373,578
930,000 Sears Roebuck & Company, 8.55%,
due 8/1/96................... 940,824
1,582,000 Sears Roebuck & Company, 9.00%,
due 9/16/96.................. 1,608,131
75,000 Security Pacific Corporation,
7.75%, due 12/1/96........... 75,962
</TABLE>
See notes to financial statements. 12 TRANS ADVISER FUNDS, INC.
<PAGE>
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (continued)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
FIXED RATE NOTES--CORPORATE, CONTINUED:
<C> <S> <C>
$ 580,000 Southwestern Bell Telephone
Company, 8.30%, due 6/3/96... $ 583,501
179,000 Textron Inc., 9.25%, due
3/15/96...................... 187,397
55,000 Travelers Group, 8.375%, due
12/15/96..................... 56,156
1,295,000 U.S. West Capital Funding,
8.00%, due 10/15/96.......... 1,311,742
25,000 Union Electric Company, 5.50%,
due 3/1/97................... 24,976
250,000 Virginia Electric & Power
Company, 7.25%, due 3/1/97... 253,948
580,000 Wal-Mart Stores, Inc., 8.00%,
due 5/1/96................... 582,057
<CAPTION>
FACE SECURITY
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<C> <S> <C>
FIXED RATE NOTES--CORPORATE, CONTINUED:
$ 445,000 Waste Management, Inc., 4.625%,
due 4/14/96.................. $ 444,326
645,000 Waste Management, Inc., 7.875%,
due 8/15/96.................. 651,083
56,000 Wells Fargo and Company, 8.20%,
due 11/1/96.................. 56,781
-------------
Total Fixed Rate Notes--Corporate............ 27,011,201
-------------
MUNICIPAL BONDS (1.8%):
1,000,000 State of Connecticut General
Obligation Temporary Notes,
8.90%, due 8/1/96............ 1,014,400
-------------
Total Municipal Bonds........................ 1,014,400
-------------
Total Investments (100.0%)................... $ 57,786,134
-------------
-------------
</TABLE>
See notes to financial statements. 13 TRANS ADVISER FUNDS, INC.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
AGGRESSIVE BOND KENTUCKY MONEY MARKET
GROWTH/VALUE FUND GROWTH FUND FUND TAX-FREE FUND FUND
----------------- -------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value................... $ 7,360,687 $ 1,999,307 $ 10,874,622 $ 18,616,225 $ 57,786,134
Cash.................................... 1,439,433 653,853 249 336,846 --
Interest, dividends and other
receivables........................... 9,125 3,548 156,777 295,182 736,914
Receivable for securities sold.......... -- -- -- -- 172,326
Receivable for shares issued............ 104,563 3,373 -- 77,774 --
Organization costs, net of
amortization.......................... 29,112 29,112 29,112 29,112 29,112
----------------- -------------- --------------- ------------- -------------
Total assets.............................. 8,942,920 2,689,193 11,060,760 19,355,139 58,724,486
----------------- -------------- --------------- ------------- -------------
LIABILITIES:
Payable for securities purchased........ 872,362 60,370 588,270 1,519,303 615,674
Administration fees payable............. 2,083 -- 2,647 2,500 5,843
Accrued expenses and other payables..... 7,476 -- -- 9,396 28,306
Dividends payable....................... -- -- 49,964 69,214 192,620
----------------- -------------- --------------- ------------- -------------
Total liabilities......................... 881,921 60,370 640,881 1,600,413 842,443
----------------- -------------- --------------- ------------- -------------
NET ASSETS................................ $ 8,060,999 $ 2,628,823 $ 10,419,879 $ 17,754,726 $ 57,882,043
----------------- -------------- --------------- ------------- -------------
----------------- -------------- --------------- ------------- -------------
COMPONENTS OF NET ASSETS:
Capital paid in......................... $ 7,486,891 $ 2,497,634 $ 10,460,932 $ 17,645,459 $ 57,881,523
Undistributed net investment loss....... (7,418) (3,702) -- -- --
Unrealized appreciation (depreciation).. 591,543 141,694 (39,608) 64,502 --
Accumulated net realized gains
(losses).............................. (10,017) (6,803) (1,445) 44,765 520
----------------- -------------- --------------- ------------- -------------
NET ASSETS................................ $ 8,060,999 $ 2,628,823 $ 10,419,879 $ 17,754,726 $ 57,882,043
----------------- -------------- --------------- ------------- -------------
----------------- -------------- --------------- ------------- -------------
SHARES OUTSTANDING........................ 711,123 249,478 1,043,215 1,722,318 57,881,521
NET ASSET VALUE PER SHARE................. $ 11.34 $ 10.54 $ 9.99 $ 10.31 $ 1.00
COST OF INVESTMENTS....................... $ 6,769,144 $ 1,857,613 $ 10,914,230 $ 18,551,723 $ 57,786,134
</TABLE>
See notes to financial statements. 14 TRANS ADVISER FUNDS, INC.
<PAGE>
STATEMENTS OF OPERATIONS
PERIOD ENDED FEBRUARY 29, 1996 *
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE INTERMEDIATE KENTUCKY MONEY
GROWTH/VALUE GROWTH BOND TAX-FREE MARKET
FUND FUND FUND FUND FUND
----------------- -------------- --------------- ----------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income............................. $ 5,881 $ 2,087 $ 216,658 $ 274,576 $ 933,103
Dividend income............................. 22,187 3,162 -- -- --
----------------- -------------- --------------- ----------- ----------
Total income.................................. 28,068 5,249 216,658 274,576 933,103
----------------- -------------- --------------- ----------- ----------
EXPENSES:
Advisory.................................... 18,226 4,605 13,215 18,398 32,485
Administration.............................. 10,417 10,417 10,417 10,833 24,364
Transfer agent.............................. 14,917 11,405 17,685 23,017 51,113
Custodian................................... 427 307 1,551 1,040 5,514
Legal....................................... 1,184 266 2,293 3,022 11,339
Accounting.................................. 15,000 15,000 15,000 18,600 15,000
Trustees.................................... 482 110 985 995 3,997
Registration................................ 5,864 3,117 9,167 5,506 27,501
Amortization of organization costs.......... 2,647 2,647 2,647 2,647 2,647
Other....................................... 2,295 1,147 3,337 6,133 11,957
----------------- -------------- --------------- ----------- ----------
Total expenses................................ 71,459 49,021 76,297 90,191 185,917
Expenses reimbursed and fees waived......... (35,973) (40,070) (59,259) (51,362) (80,055)
----------------- -------------- --------------- ----------- ----------
Net expenses.................................. 35,486 8,951 17,038 38,829 105,862
----------------- -------------- --------------- ----------- ----------
NET INVESTMENT INCOME (LOSS).................. (7,418) (3,702) 199,620 235,747 827,241
----------------- -------------- --------------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investments..... (10,017) (6,803) (1,445) 44,765 520
Net change in unrealized appreciation
(depreciation)............................ 591,543 141,694 (39,608) 64,502 --
----------------- -------------- --------------- ----------- ----------
Net gain (loss) on investments................ 581,526 134,891 (41,053) 109,267 520
----------------- -------------- --------------- ----------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS........ $ 574,108 $ 131,189 $ 158,567 $ 345,014 $ 827,761
----------------- -------------- --------------- ----------- ----------
----------------- -------------- --------------- ----------- ----------
</TABLE>
* See note 1 of notes to financial statements for commencement of operations.
See notes to financial statements. 15 TRANS ADVISER FUNDS, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
PERIOD ENDED FEBRUARY 29, 1996 *
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AGGRESSIVE INTERMEDIATE KENTUCKY MONEY
GROWTH/VALUE GROWTH BOND TAX-FREE MARKET
FUND FUND FUND FUND FUND
----------------- -------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSETS--September 1, 1995........... -- -- -- -- --
----------------- -------------- --------------- ------------- ---------------
OPERATIONS:
Net investment income (loss).......... $ (7,418) $ (3,702) $ 199,620 $ 235,747 $ 827,241
Net realized gain (loss) on
investments......................... (10,017) (6,803) (1,445) 44,765 520
Net change in unrealized appreciation
(depreciation)...................... 591,543 141,694 (39,608) 64,502 --
----------------- -------------- --------------- ------------- ---------------
574,108 131,189 158,567 345,014 827,761
----------------- -------------- --------------- ------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income................. -- -- (199,620) (235,747) (827,241)
----------------- -------------- --------------- ------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Sale of shares........................ 7,601,317 2,551,860 10,707,416 18,671,280 188,894,580
Reinvested dividends.................. -- -- 1,687 139,548 25,307
Cost of shares repurchased............ (114,426) (54,226) (248,171) (1,165,369) (131,038,364)
----------------- -------------- --------------- ------------- ---------------
7,486,891 2,497,634 10,460,932 17,645,459 57,881,523
----------------- -------------- --------------- ------------- ---------------
NET ASSETS--February 29, 1996........... $ 8,060,999 $ 2,628,823 $ 10,419,879 $ 17,754,726 $ 57,882,043
----------------- -------------- --------------- ------------- ---------------
----------------- -------------- --------------- ------------- ---------------
</TABLE>
* See note 1 of notes to financial statements for commencement of operations.
See notes to financial statements. 16 TRANS ADVISER FUNDS, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Trans Adviser Funds, Inc. (the "Company") is an open-end management investment
company incorporated under the laws of the State of Maryland. The Company
currently consists of five operational non-diversified investment portfolios,
the Growth/Value Fund, the Aggressive Growth Fund, the Intermediate Bond Fund,
the Kentucky Tax-Free Fund, and the Money Market Fund (each a "Fund" and
collectively the "Funds"). The Funds commenced investment operations on the
following dates:
<TABLE>
<S> <C>
Growth/Value Fund September 29, 1995
Aggressive Growth Fund September 29, 1995
Intermediate Bond Fund October 3, 1995
Kentucky Tax-Free Fund September 27, 1995
Money Market Fund September 29, 1995
</TABLE>
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION-All securities held by the Money Market Fund are valued
utilizing the amortized cost method, which approximates market value, in
accordance with Rule 2a-7 under the Investment Company Act of 1940. Securities,
other than short-term, held by the other Funds (the "Bond and Equity Funds") for
which market quotations are readily available are valued using the last reported
sales price provided by independent pricing services. If no sales are reported,
the mean of the last bid and ask price is used. In the absence of readily
available market quotations, securities are valued at fair value as determined
by the Board of Directors. Securities with a maturity of 60 days or less held by
the Bond and Equity Funds are valued at amortized cost.
PREMIUM AMORTIZATION AND DISCOUNT ACCRETION-In all Funds other than the Kentucky
Tax-Free Fund, if a fixed income investment is purchased at a premium, the
premium is not amortized. The Kentucky Tax-Free Fund amortizes premium on fixed
income investments to the maturity (or first call) date using the yield to
maturity method. If a fixed income investment is purchased at a discount (other
than original issue discount), the discount is not accreted. Original issue
discount on fixed income investments is accreted daily using yield to maturity
method.
INTEREST AND DIVIDEND INCOME AND DISTRIBUTIONS TO SHAREHOLDERS-Interest income
is accrued as earned. Dividends on securities held by the Funds are recorded on
the ex-dividend date. Distributions of net investment income are declared daily
and paid monthly for the Money Market Fund, the Kentucky Tax-Free Fund, and the
Intermediate Bond Fund, and declared and paid annually for the Growth/Value Fund
and the Aggressive Growth Fund. Net capital gain, if any, is distributed at
least annually to shareholders.
Distributions from net investment income and realized capital gains are based on
their tax basis. The significant difference between financial statement amounts
available for distribution and distributions made in accordance with income tax
regulations are primarily attributable to the deferral of post-October losses
and wash sales.
ORGANIZATION COSTS-The costs incurred by the Funds in connection with their
organization, in amounts of $31,759 for each Fund, have been capitalized and are
being amortized using the straight-line method over a five year period beginning
on the commencement of each Fund's investment operations. Certain of these costs
were paid by Forum Financial Services, Inc. and have been reimbursed by the
respective Funds.
FEDERAL INCOME TAXES-Each Fund intends to qualify as a regulated investment
company and distribute all of its taxable income. Therefore, no Federal income
tax provision is required.
OTHER-Realized gains and losses on investments sold are recorded on the basis of
identified cost. Security transactions are accounted for on a trade date basis.
17 TRANS ADVISER FUNDS, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser of the Funds is Trans Financial Bank, N.A. (the
"Adviser"). The Adviser receives an advisory fee from Growth/Value Fund and
Aggressive Growth Fund at an annual rate of 1.00% of the respective Fund's
average daily net assets. The Adviser receives an advisory fee from Intermediate
Bond Fund and Kentucky Tax-Free Fund at an annual rate of 0.40% of the
respective Fund's average daily net assets. The Adviser receives an advisory fee
from Money Market Fund at an annual rate of 0.20% of the Fund's average daily
net assets. Pursuant to an agreement between the Adviser and Mastrapasqua and
Associates, Inc. ("M&A") (the "Sub-Adviser"), the Adviser may delegate certain
of its advisory responsibilities to the Sub-Adviser and pay the Sub-Adviser a
fee.
The Adviser has agreed to reimburse each Fund for certain operating expenses
(exclusive of interest, taxes, brokerage fees, fees and other expenses paid
pursuant to any distribution plan and organization expenses, all to the extent
permitted by applicable state law or regulation) which in any year exceed the
limits prescribed by any state in which the Fund's shares are qualified for
sale. The Funds' annual expenses are estimated and accrued daily, and any
related reimbursements are made monthly by the Adviser.
The administrator of the Company is Forum Financial Services, Inc. ("Forum"), a
registered broker-dealer and a member of the National Association of Securities
Dealers, Inc. For its administrative services Forum receives a fee for each Fund
equal to the greater of $25,000 per year or 0.15% of the annual average daily
net assets of each Fund. Forum also acts as the Company's distributor pursuant
to a separate Distribution Agreement with the Company. Forum receives no
compensation under that agreement. In addition, certain legal expenses were
charged to the Company by Forum. The amounts of legal expenses for Growth/Value
Fund, Aggressive Growth Fund, Intermediate Bond Fund, Kentucky Tax-Free Fund,
and Money Market Fund were: $756, $170, $1,458, $2,063, and $7,229,
respectively.
Forum Financial Corp. ("FFC"), an affiliate of Forum, serves as the Company's
transfer agent and dividend disbursing agent, and for those services receives an
annual fee equal to the greater of $12,000 per year for each Fund, an annual
shareholder account fee of $25 per shareholder, additional class charges, and
out of pocket expenses billed at cost. FFC also serves as the Company's fund
accountant and is compensated for those services at an amount of $36,000 per
year per Fund plus certain amounts based upon the number and types of portfolio
transactions within each Fund.
For the period ended February 29, 1996, fees waived and expenses reimbursed by
the Adviser were as follows:
<TABLE>
<CAPTION>
EXPENSES
FEES WAIVED REIMBURSED
------------- ------------
<S> <C> <C>
Growth/Value Fund........................................................ $ 18,226 $ 17,747
Aggressive Growth Fund................................................... 4,605 35,465
Intermediate Bond Fund................................................... 13,215 46,044
Kentucky Tax-Free Fund................................................... 18,398 32,964
Money Market Fund........................................................ 32,485 47,570
</TABLE>
18 TRANS ADVISER FUNDS, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
NOTE 4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales (including maturities) of securities
(excluding short-term investments) during the period ended February 29, 1996
were as follows:
<TABLE>
<CAPTION>
COST OF PURCHASES PROCEEDS FROM SALES
------------------ ---------------------
<S> <C> <C>
Growth/Value Fund......................................... $ 6,012,045 $ 87,683
Aggressive Growth Fund.................................... 1,731,243 134,196
Intermediate Bond Fund.................................... 13,147,299 627,635
Kentucky Tax-Free Fund.................................... 24,791,718 6,389,168
</TABLE>
The cost of investments for federal income tax purposes is the same as for
financial reporting purposes. Unrealized appreciation and depreciation as of
February 29, 1996 were as follows:
<TABLE>
<CAPTION>
UNREALIZED APPRECIATION UNREALIZED DEPRECIATION
----------------------- -----------------------
<S> <C> <C>
Growth/Value Fund.................................. $ 644,934 $ 53,391
Aggressive Growth Fund............................. 185,370 43,676
Intermediate Bond Fund............................. 24,861 64,469
Kentucky Tax-Free Fund............................. 143,430 78,928
</TABLE>
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions of fund shares for the period ended February 29, 1996 are
summarized in the following table:
<TABLE>
<CAPTION>
GROWTH/VALUE AGGRESSIVE INTERMEDIATE KENTUCKY TAX- MONEY MARKET
FUND GROWTH FUND BOND FUND FREE FUND FUND
------------- ------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C>
Sale of Shares......... 721,855 255,032 1,067,684 1,820,466 188,894,578
Shares Issued on
Reinvested
Dividends............. -- -- 239 14,607 25,307
Shares Repurchased..... 10,732 5,554 24,708 112,755 131,038,364
</TABLE>
19 TRANS ADVISER FUNDS, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
FEBRUARY 29, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECTED PER SHARE DATA AND
RATIOS FOR A SHARE OUTSTANDING AGGRESSIVE INTERMEDIATE KENTUCKY MONEY
THROUGHOUT THE PERIOD ENDED GROWTH/VALUE GROWTH BOND TAX-FREE MARKET
FEBRUARY 29, 1996.(A) FUND FUND FUND FUND FUND
----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Beginning Net Asset Value Per
Share....................... $10.00 $10.00 $10.00 $10.00 $1.00
----------- ----------- ------------ ------------ ------------
Net Investment Income
(Loss)(d)................... (0.02) (0.03) 0.25 0.24 0.21
Net Realized and Unrealized
Gain (Loss) on
Investments................. 1.36 0.57 (0.01) 0.31 --
----------- ----------- ------------ ------------ ------------
Distributions from Net
Investment Income........... -- -- (0.25) (0.24) (0.21)
----------- ----------- ------------ ------------ ------------
Ending Net Asset Value Per
Share....................... $11.34 $10.54 $9.99 $10.31 $1.00
----------- ----------- ------------ ------------ ------------
----------- ----------- ------------ ------------ ------------
Ratios to Average Net Assets:
Expenses(b)................. 1.95%(c) 1.95%(c) 0.52%(c) 0.88%(c) 0.65%(c)
Net Investment Income
(Loss).................... (0.40)%(c) (0.79)%(c) 6.12%(c) 5.33%(c) 5.03%(c)
Total Return.................. 13.40% 5.40% 2.40% 5.55% 2.16%
Portfolio Turnover Rate....... 2.25% 14.72% 1.71% 59.14% N/A
Net Assets at End of Period
(000's omitted)............. $8,061 $2,629 $10,420 $17,755 $57,882
</TABLE>
(a) See note 1 of notes to financial statements for commencement of operations.
(b) During the period, various fees and expenses were waived and reimbursed. Had
such waiver and reimbursement not occurred, the ratio of expenses to average
net assets would have been:
<TABLE>
<S> <C> <C> <C> <C> <C>
3.87 %(c) 10.51 %(c) 2.34 %(c) 2.04 %(c) 1.13 %(c)
</TABLE>
(c) Annualized.
(d) Using weighted average shares outstanding.
See notes to financial statements. 20 TRANS ADVISER FUNDS, INC.
<PAGE>
TRANS ADVISER FUNDS
P.O. Box 90001
Bowling Green, KY 42102-9001
ADVISER
Trans Financial Bank
P.O. Box 90001
Bowling Green, KY 42102-9001
SUB-ADVISER
Mastrapasqua & Associates, Inc.
1801 West End Avenue
Nashville, TN 37203
ADMINISTRATOR/DISTRIBUTOR
Forum Financial Services, Inc.
Two Portland Square
Portland, ME 04101
TRANSFER AGENT
Forum Financial Corp.
Two Portland Square
Portland, ME 04101
LEGAL COUNSEL
Kramer, Levin, Naftalis, Nessen,
Kamin & Frankel
919 Third Avenue
New York, NY 10022
AUDITORS
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110
Table of Contents
<TABLE>
<CAPTION>
Page
<S> <C>
Schedule of Investments:
Growth/Value Fund......................... 2
Aggressive Growth Fund.................... 4
Intermediate Bond Fund.................... 5
Kentucky Tax-Free Fund.................... 7
Money Market Fund......................... 11
Statements of Assets and Liabilities........ 14
Statements of Operations.................... 15
Statements of Changes in Net Assets......... 16
Notes to Financial Statements............... 17
Financial Highlights........................ 20
</TABLE>
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO OTHERS
WHO HAVE RECEIVED A COPY OF THE TRANS ADVISER FUNDS, INC. PROSPECTUS.
[LOGO]
GROWTH/VALUE FUND
AGGRESSIVE GROWTH FUND
INTERMEDIATE BOND FUND
KENTUCKY TAX-FREE FUND
MONEY MARKET FUND
SEMI ANNUAL REPORT
FEBRUARY 29, 1996
(UNAUDITED)
NOT FDIC INSURED
