-----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, K7aHiSgFV2w2Wk4YO1Is6EzR0Ucq2cXd8sUvs0JUllbHd69RqeELai/CKL2ckSvD pk4/6Ap3M5tTYdxIjbY3vw== 0000922423-96-000116.txt : 19960306 0000922423-96-000116.hdr.sgml : 19960306 ACCESSION NUMBER: 0000922423-96-000116 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960305 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BEACON HILL MUTUAL FUND INC CENTRAL INDEX KEY: 0000010578 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 046109264 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01281 FILM NUMBER: 96531198 BUSINESS ADDRESS: STREET 1: 75 FEDERAL ST STREET 2: STE 403 CITY: BOSTON STATE: MA ZIP: 02110-1904 BUSINESS PHONE: 6174820795 MAIL ADDRESS: STREET 1: 75 FEDERAL ST STREET 2: STE 403 CITY: BOSTON STATE: MA ZIP: 02110-1904 N-30D 1 SEMI-ANNUAL FINANCIAL REPORT TO SHAREHOLDER [LOGO] BEACON HILL MUTUAL FUND, INC. A NO-LOAD FUND Financial Report For the Six Months Ended December 31, 1995 (unaudited) DEAR SHAREHOLDER: Beacon Hill Mutual Fund posted a double digit gain during first half of the Fund's fiscal year. The net asset value of your shares increased 13.0% during the six months ended December 31, 1995. The stock market, which is best represented by the S&P 500 Index, gained 14.4% during this same six month period and the Dow Jones Industrial Average gained 13.7%. See Financial Highlights for additional information concerning performance. Following up on our commitment to upgrade the administration of your fund to meet current mutual fund industry standards, we have modernized our new account application and have added an Automatic Monthly Investment program. Automatic Monthly Investing offers you the option of purchasing additional Beacon Hill Mutual Fund shares by automatically transferring funds from your checking or savings account on a monthly basis. There is no charge for this service, but you must agree to transfer a minimum of $50 per month. We would be happy to discuss Automatic Monthly Investing with you and to send you the appropriate application upon request. As I reported to you during 1995, we are working diligently to increase shareholder value and to grow the Fund through performance and additional funding. We are also committed to maintaining the high level of fundamental research that has served you well for many years past. These efforts will continue. I am sure we will continue to enjoy a prosperous and fruitful association together and as always we are availalble to answer any of your questions. Your recommendation of Beacon Hill Mutual Fund to friends, relatives and other associates is appreciated. Sincerely, /s/ Bernard Zimmerman Bernard Zimmerman President February 20, 1996 BEACON HILL MUTUAL FUND, INC. INVESTMENT PORTFOLIO DECEMBER 31, 1995 (UNAUDITED) NUMBER VALUE OF SHARES (NOTE 2) --------- -------- COMMON STOCKS BEVERAGES (10.1%) 9,000 PepsiCo, Inc. .................... $ 502,875 ---------- ELECTRICAL EQUIPMENT (4.9%) 3,000 Emerson Electric Company ......... 245,250 ---------- FOOD PROCESSING (6.5%) 6,000 Heinz (H. J.) Company ............ 198,750 4,000 Sara Lee Corp. ................... 127,500 ---------- 326,250 ---------- HOSPITAL SUPPLIES (13.6%) 8,000 Abbott Labs ...................... 334,000 4,000 Johnson & Johnson ................ 342,500 ---------- 676,500 ---------- HOUSEHOLD PRODUCTS (10.0%) 6,000 Procter & Gamble Company ......... 498,000 ---------- PHARMACEUTICALS (20.5%) 2,000 American Home Products Corp. ..... 194,000 5,000 Bristol-Myers Squibb ............. 429,375 6,000 Merck & Co. Inc. ................. 394,500 ---------- 1,017,875 ---------- PUBLISHING AND SPECIALTY RETAILING (8.4%) 10,000 Harcourt General Inc. ............ $ 418,750 ---------- RETAIL -- DRUG (2.4%) 4,000 Walgreen Co. ..................... 119,500 ---------- RETAIL -- FOOD (4.0%) 7,000 Weis Markets, Inc. ............... 197,750 ---------- WHOLESALE -- FOOD (7.2%) 11,000 Sysco Corp. ...................... 357,500 ---------- TOTAL INVESTMENTS IN COMMON STOCKS (87.6%) (identified cost, $579,150) .... 4,360,250 EXCESS OF OTHER ASSETS OVER TOTAL LIABILITIES (12.4%) ...... 614,681 ---------- NET ASSETS (100%) ............ $4,974,931 ========== See notes to financial statements. STATEMENTS OF CHANGES IN NET ASSETS SIX MONTHS ENDED DECEMBER 31, YEAR ENDED 1995 JUNE 30, (UNAUDITED) 1995 --------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Investment loss -- net ............ $ (22,108) $ (41,564) Realized gain on sale of investments ..................... -- 235,070 Increase in unrealized appreciation of investments .................. 584,500 828,784 ---------- ---------- Net increase in net assets from operations ...................... 562,392 1,022,290 CAPITAL GAIN DISTRIBUTION ............. -- (232,467) CAPITAL SHARE TRANSACTIONS (Note 3) ... 118,578 (703,456) ---------- ---------- TOTAL INCREASE IN NET ASSETS .......... 680,970 86,367 NET ASSETS: Beginning of period ............... 4,293,961 4,207,594 ---------- ---------- End of period (including accumulated net investment loss of $467,236 and $445,128) ...... $4,974,931 $4,293,961 ========== ========== FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEAR ENDED JUNE 30 DECEMBER 31, 1995* ------------------------------------------------------- (UNAUDITED) 1995* 1994* 1993* 1992* 1991 ------------------ ------ ------ ------ ------ ------ NET ASSET VALUE, BEGINNING OF PERIOD ......... $32.86 $27.17 $30.52 $31.83 $31.51 $30.09 ------ ------ ------ ------ ------ ------ INCOME FROM INVESTMENT OPERATIONS: Net investment loss ........................ (0.16) (0.30) (0.17) (0.21) (0.32) (0.24) Net gains (losses) on securities (both realized and unrealized) ........... 4.43 7.88 (1.53) (0.51) 2.00 3.46 ------ ------ ------ ------ ------ ------ Total from investment operations ....... 4.27 7.58 (1.70) (0.72) 1.68 3.22 LESS DISTRIBUTIONS FROM REALIZED CAPITAL GAINS .............................. -- (1.89) (1.65) (0.59) (1.36) (1.80) ------ ------ ------ ------ ------ ------ NET ASSET VALUE, END OF PERIOD ............... $37.13 $32.86 $27.17 $30.52 $31.83 $31.51 ====== ====== ====== ====== ====== ====== CUMULATIVE TOTAL RETURN ...................... 13.0% 28.2% (5.6%) (2.2)% 5.3% 10.7% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) ... $4,975 $4,294 $4,208 $5,253 $5,039 $4,367 Ratio of expenses to average net assets** .. 3.5%*** 3.0% 2.7% 2.6% 2.8% 3.5% Ratio of net loss to average net assets .... (1.0%)*** (1.0%) (0.6%) (0.7%) (1.0%) (1.2%) Portfolio turnover rate .................... 0.0% 0.0% 0.0% 2.5% 5.5% 3.3% *December 31, 1995 and June 30, 1995, 1994, 1993 and 1992 per share figures are based on average shares outstanding during the period. **For the six months ended December 31, 1995, the Fund's expenses are calculated without reduction for fees paid indirectly. ***Computed on an annualized basis.
See notes to financial statements. STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 (UNAUDITED) ASSETS: Investments (Note 2): Common stocks, at value (identified cost, $579,150) ... $4,360,250 Cash .................................................... 630,918 Dividends receivable .................................... 6,190 Other assets ............................................ 410 ---------- Total assets .................................... 4,997,768 ---------- LIABILITIES: Payable to affiliate -- management fees (Note 4) ........ 12,047 Accrued expenses ........................................ 10,790 ---------- Total liabilities ............................... 22,837 ---------- NET ASSETS -- Equivalent to $37.13 per share based on 133,986 shares of capital stock outstanding at December 31, 1995 (Note 3) ................................................. $4,974,931 ========== NET ASSETS CONSIST OF: Paid-in capital ......................................... $1,658,869 Accumulated net investment loss ......................... (467,236) Undistributed net realized gain on investments .......... 2,198 Unrealized appreciation of investments .................. 3,781,100 ---------- Total ........................................... $4,974,931 ========== NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE ..................................................... $37.13 ====== STATEMENT OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED) INVESTMENT INCOME: Income -- dividends ................................. $ 45,970 Expenses: Management fees (Note 4) ........... $22,818 Transfer agent fees ................ 17,800 Custodian fees ..................... 13,538 Legal fees (Note 4) ................ 10,080 Printing ........................... 6,511 Audit fees ......................... 5,796 Other expenses ..................... 3,057 ------- Total expenses ................. 79,600 Less fees paid indirectly (Note 2) ..... (11,522) 68,078 ------- ---------- Investment loss -- net .................. (22,108) INCREASE IN UNREALIZED APPRECIATION OF INVESTMENTS ...... 584,500 --------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .... $ 562,392 ========= See notes to financial statements. NOTES TO FINANCIAL STATEMENTS SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED) 1. BUSINESS AND ORGANIZATION Beacon Hill Mutual Fund, Inc. (the "Fund") is organized as a Massachusetts corporation and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end, management investment company. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Valuation of Securities -- Investments in common stocks traded on a national securities exchange are valued at the last reported sales price on the last business day of the accounting period; common stocks traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last reported bid price. Security Transactions and Income -- Security transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. For purposes of determining net realized gains and losses, the Fund uses the identified-cost method of accounting for investment securities. Federal Income Taxes -- No provision has been made for federal income taxes as it is the Fund's policy to distribute substantially all of its taxable income and comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. The identified cost of investments owned at December 31, 1995 was the same for both accounting and federal income tax purposes. Fees Paid Indirectly -- The Fund's custodian bank calculates its fee based on the Fund's average daily net assets. The fee is reduced according to a fee arrangement, which provides for custody fees to be reduced based on a formula developed to measure the value of cash deposited with the custodian by the Fund. This amount is shown as a reduction of expenses on the statement of operations. 3. CAPITAL STOCK At December 31, 1995, there were 1,500,000 shares of $1.00 par value capital stock authorized. Transactions in capital stock were as follows: SIX MONTHS ENDED DECEMBER 31, 1995 YEAR ENDED JUNE 30, (UNAUDITED) 1995 --------------------- --------------------- SHARES AMOUNT SHARES AMOUNT ------- ----------- ------- ----------- Shares sold .................. 4,999 $ 175,126 17,357 $ 514,443 Shares issued for reinvestment of distributions ........... -- -- 7,102 222,338 Shares redeemed .............. (1,672) (56,548) (48,647) (1,440,237) ------ ----------- ------- ----------- Net increase (decrease) ...... 3,327 $ 118,578 (24,188) $ (703,456) ====== =========== ======= =========== 4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund's management contract with Beacon Hill Management, Inc. (the "Company") provides for investment advice and other services. The management fee is computed on a quarterly basis at a rate of 0.25% of the average of the net asset values of the Fund at the close of business on the last business day of each month throughout the quarter, or at an approximate annual rate of 1%. Management fees aggregated $22,818 for the six months ended December 31, 1995. The Clerk of the Fund is an of-counsel attorney to the firm of Nutter, McClennen & Fish, LLP, the Fund's legal counsel. During the six months ended December 31, 1995, the Fund incurred $10,080 in legal fees payable to Nutter, McClennen & Fish, LLP. The President and Treasurer of the Fund also serves in that capacity for the Company, and is a director in both organizations. 5. FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES The cost and unrealized appreciation in value of the investment securities owned at December 31, 1995, as computed on a federal income tax basis, are as follows: (UNAUDITED) --------- Aggregate cost ........................................... $ 579,150 ========== Gross and net unrealized appreciation .................... $3,781,100 ========== 6. INVESTMENT TRANSACTIONS There were no purchases or sales of investments for the six months ended December 31, 1995. BEACON HILL MUTUAL FUND, INC. 75 FEDERAL STREET, BOSTON, MA 02110-1904 Board of Directors EUGENE F. DEMARK FRANCIS M. TROTTA NICHOLAS A. SICA BERNARD ZIMMERMAN Officers BERNARD ZIMMERMAN, President and Treasurer IRVING J. HELMAN, Clerk Investment Adviser BEACON HILL MANAGEMENT, INC. 75 Federal Street Boston, Massachusetts 02110-1904 Counsel NUTTER, MCCLENNEN & FISH, LLP One International Place Boston, Massachusetts 02110-2699 Custodian, Dividend Disbursing and Transfer Agent STATE STREET BANK & TRUST CO. P.O. Box 8500 Boston, Massachusetts 02266-8500 1-(800) 343-0529 Auditors DELOITTE & TOUCHE LLP 125 Summer Street Boston, Massachusetts 02110-1617 This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. The report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus. -----END PRIVACY-ENHANCED MESSAGE-----