-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HnKubgnfIK6N3UJWj6Y/Sg4qnadRLw/BPObYct/OCgJbs1vrNoKe396xQBFt6/jh nqZqBP3WnixU0kaBV0Ws8g== 0000898531-97-000042.txt : 19970228 0000898531-97-000042.hdr.sgml : 19970228 ACCESSION NUMBER: 0000898531-97-000042 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970227 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BURRIDGE FUNDS CENTRAL INDEX KEY: 0001022100 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07801 FILM NUMBER: 97545591 BUSINESS ADDRESS: STREET 1: 115 SOUTH LASALLE STREET CITY: CHICAGO STATE: IL ZIP: 60603 BUSINESS PHONE: 3122877434 N-30D 1 BURRIDGE FUNDS SEMIANNUAL BURRIDGE CAPITAL DEVELOPMENT FUND SEMI-ANNUAL REPORT DECEMBER 31, 1996 STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1996 (UNAUDITED) ASSETS Investments, at market value (cost: $194,520) $193,263 Prepaid expenses 24,469 Other assets 60,384 -------- Total assets 278,116 -------- LIABILITIES Payable for securities purchased 94,472 Payable to adviser 83,317 Accrued expenses and liabilities 1,556 -------- Total liabilities 179,345 -------- NET ASSETS $98,771 ======== NET ASSETS CONSIST OF: Shares of beneficial interest (no par value, unlimited amount of shares authorized, 10,000 shares issued and outstanding, and paid-in capital) 100,000 Accumulated net investment income 28 Net unrealized (depreciation) on investments (1,257) -------- Total net assets $98,771 ======== Net asset value per share $9.88 ===== The accompanying notes to the financial statements are an integral part of this statement. SCHEDULE OF INVESTMENTS DECEMBER 31, 1996 (UNAUDITED) Shares Market Value ------- ------------ COMMON STOCKS 94.4% CONSUMER DISCRETIONARY 23.0% 110 Boston Chicken, Inc.* $3,946 115 Circus Circus Enterprises* 3,953 120 Dollar General Corporation 3,840 60 Nike, Inc. - Class B 3,585 125 Pep Boys - Manny, Moe & Jack 3,844 125 Starbucks Corporation * 3,578 --------- 22,746 --------- FINANCIAL SERVICES 20.2% 160 Equitable Companies, Inc. 3,940 60 Franklin Resources, Inc. 4,103 100 Green Tree Financial Corp. 3,863 95 MBNA Corporation 3,943 335 Mercury Finance Co. 4,104 --------- 19,953 --------- HEALTH CARE 8.0% 120 Elan Corp. PLC - ADR * 3,990 80 Shared Medical Systems Corp. 3,940 --------- 7,930 --------- PRODUCER DURABLES 11.5% 115 Molex, Inc. - Class A 4,097 65 Novellus Systems, Inc.* 3,522 70 Solectron Corp. * 3,736 --------- 11,355 --------- TECHNOLOGY 23.5% 75 Andrew Corp. * 3,980 115 EMC Corp. * 3,809 185 Informix Corp. * 3,769 70 Nokia Corp. Class A - ADR * 4,034 85 Symbol Technologies, Inc. * 3,761 60 Texas Instruments, Inc. 3,825 --------- 23,178 --------- TRANSPORTATION 8.2% 75 Magna International, Inc. 4,181 175 Southwest Airlines Co. 3,872 --------- 8,053 --------- Total Common Stocks (Cost $94,472) 93,215 --------- Principal Market Value --------- ------------ SHORT-TERM INVESTMENTS 101.3% U.S. TREASURY OBLIGATIONS 101.2% 100,000 U.S. Treasury Bill, 4.85%, 1/02/97 $99,990 VARIABLE RATE DEMAND NOTE 0.1% 58 Wisconsin Electric, 5.55%, due upon demand 58 --------- Total Short-Term Investments (Cost $100,048) 100,048 --------- TOTAL INVESTMENTS (COST $194,520) 193,263 --------- LIABILITIES, LESS OTHER ASSETS (95.7)% (94,492) --------- TOTAL NET ASSETS 100.0% $98,771 ========= *non-income producing The accompanying notes to financial statements are an integral part of this statement. STATEMENT OF OPERATIONS (UNAUDITED) Dec. 27, 1996 (1) through Dec. 31, 1996 ----------------- INCOME Interest $49 -------- EXPENSES Investment advisory fee 14 Registration fees 734 Administration fee 349 Shareholder servicing fees 279 Legal and audit fees 385 Printing expense 41 Accounting fee 283 Custodian fees 77 Amortization of deferred costs 233 Trustees' fees and expenses 96 Other operating expenses 157 ------- Total expenses before waiver 2,648 Less: reimbursement from adviser (2,627) -------- Net expenses 21 -------- Net investment income 28 ======== NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain on investments - Net change in unrealized (depreciation) on investments (1,257) -------- Net gain(loss) on investments (1,257) -------- NET DECREASE IN ASSETS RESULTING FROM OPERATIONS $(1,229) ======== (1)Inception of Fund. The accompanying notes to the financial statements are an integral part of this statement. STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED) Dec. 27, 1996 (1) through Dec. 31, 1996 ----------------- OPERATIONS: Net investment income $28 Net realized gain on investments - Net change in unrealized (depreciation) on investments (1,257) -------- Net decrease in net assets resulting from operations (1,229) -------- DISTRIBUTIONS TO SHAREHOLDERS: Distributions from net investment income - Distributions from net realized capital gains - -------- Total distributions - -------- CAPITAL SHARE TRANSACTIONS: Proceeds from shares issued (10,000 shares) 100,000 Increase in shares issued in reinvested distributions - Cost of shares redeemed - -------- Net increase in assets derived from capital share transactions 100,000 -------- Net increase in net assets 98,771 -------- NET ASSETS: Beginning of period - -------- End of period (including accumulated net investment income of $28) $98,771 ======== (1)Inception of Fund. The accompanying notes to the financial statements are an integral part of this statement. FINANCIAL HIGHLIGHTS (UNAUDITED) Dec. 27, 1996 (1) through Dec. 31, 1996 ----------------- Net asset value at beginning of period $10.00 Income from investment operations: Net investment income 0.00 Net realized and unrealized (loss) on securities (0.12) --------- Total from investment operations (0.12) Less distribution: Dividends from net investment income 0.00 Distributions from realized gains on securities 0.00 -------- Total distributions 0.00 -------- Net asset value at end of period $9.88 ======== Total return (1.20%)(2) Ratios/Supplemental Data: Net assets at end of period $98,771 Ratio of net expenses to average net assets 1.50%(3) Net investment income to average net assets 2.10%(3) Portfolio turnover rate 0.00% Average commission rate per share $0.0400 (1)Inception of Fund. (2)Not annualized. (3)Annualized. Without expense reimbursements of $2,627 for the period December 27, 1996 through December 31, 1996, the ratio of expenses to average net assets would have been 194.06%, and the ratio of net investment income to average net assets would have been (191.02)%. The accompanying notes to financial statements are an integral part of this statement. NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) 1) ORGANIZATION Burridge Funds (the "Trust") was created on August 30, 1996 as a Massachusetts Business Trust under the laws of the Commonwealth of Massachusetts. Burridge Capital Development Fund (the "Fund") is the sole series issued by the Trust, which is an open-end management investment company registered under the Investment Company Act of 1940 (the "Act"), as amended. The Fund issued and sold 10,000 shares of beneficial interest at $10 per share on November 18, 1996. The Fund commenced operations on December 27, 1996. The objective of the Fund is long-term capital appreciation. The costs incurred in connection with the organization, initial registration and public offering of shares, aggregating $60,616, were advanced to the Fund and are payable to the Adviser. These costs are being amortized over the period of benefit, but not to exceed sixty months from the Fund's commencement of operations. The Fund's initial shareholders have agreed that if any of the initial shares are redeemed during the first sixty months of the Fund's operations by any holder thereof, the proceeds of the redemption will be reduced by the pro rata share of the anamortized organization expenses as of the date of the redemption. The pro rata share by which the redemption proceeds shall redeemed shall be derived by dividing the number of original shares redeemed by the total number of original shares outstanding at the time of redemption. 2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with generally accepted accounting principles. a) Investment Valuation - Securities which are traded on a securities exchange (including options on indexes so traded) or securities listed on the Nasdaq National Market are valued at the last sale price on the exchange or market where primarily traded or listed or, if there is no recent sale price available, at the mean between the most recent bid and asked prices. Securities not so traded or listed are valued at the mean between the most recent bid and asked prices if market quotations are available. Money market instruments maturing in 60 days or less are normally valued at amortized cost. Securities or other assets for which market quotations are not readily available will be valued at a fair value as determined in good faith by the Trust's Board of Trustees. b) Federal Income Taxes - No provision for federal income taxes or excise taxes has been made since the Fund intends to elect to be taxed as a "regulated investment company" and intends to distribute substantially all taxable income to its shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. c) Distributions to Shareholders - Dividends from net investment income are declared and paid at least annually. Distributions of net realized capital gains, if any, will be declared at least annually. d) 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. e) Other - Investment and shareholder transactions are accounted for no later than the first business day after trade date. The Fund determines the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sales proceeds. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Generally accepted accounting principles require that permanent differences between financial and tax reporting be reclassified to capital stock. 3). CAPITAL SHARE TRANSACTIONS Transactions in shares of the Fund were as follows: December 27, 1996 to December 31, 1996 --------------------- Amount Shares ------- ------- Shares sold $100,000 10,000 Shares issued to owners in reinvestment of dividends -- -- Shares redeemed -- -- --------- --------- Net increase $100,000 10,000 4). INVESTMENT TRANSACTIONS The aggregate purchases and sales of securities, excluding short-term investments, for the Fund for the period December 27, 1996 through December 31, 1996, were as follows: Purchases Sales -------- ------ U. S. Government -- -- Other $94,472 -- At December 31, 1996, gross unrealized appreciation and depreciation of investments for federal income tax purposes was as follows: Appreciation $465 (Depreciation) (1,722) -------- Net unrealized (depreciation) on investments $(1,257) -------- At December 31, 1996, the cost of investments for federal income tax purposes was $194,520. 5). INVESTMENT ADVISORY AND OTHER AGREEMENTS The Fund has entered into an investment advisory agreement with The Burridge Group LLC (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 1.00% on the first $500 million of average daily net assets, 0.85% on the next $500 million of average daily net assets, and 0.75% on the average daily net assets over $1 billion. The Adviser has voluntarily undertaken to limit the Fund's expenses (including the advisory fee but excluding extraordinary costs or expenses not incurred in the ordinary course of the Fund's operations) to 1.50% of the Fund's average daily net assets. Firstar Trust Company, a subsidiary of Firstar Corporation, a publicly held bank holding company, serves as custodian, transfer agent, administrator and accounting services agent for the Fund. SHAREHOLDER SERVICES: Burridge Funds c/o Firstar Trust Company P.O. Box 701 Milwaukee, WI 53201-9388 (888) BURRIDGE (1-888-287-7434) INVESTMENT ADVISER: The Burridge Group LLC Chicago, IL DISTRIBUTOR: Funds Distributor, Inc. Boston, MA CUSTODIAN, ADMINISTRATOR AND TRANSFER AGENT: Firstar Trust Company Milwaukee, WI INDEPENDENT AUDITORS: Arthur Andersen LLP Chicago, IL LEGAL COUNSEL: Bell, Boyd & Lloyd Chicago, IL This report is submitted for the information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. -----END PRIVACY-ENHANCED MESSAGE-----