-----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, SpzM9q+s6095wiTN91Z+9b3leib72grXDFDuDCnf3JcuVOtRX+CsbeAcmSfnU7FR zUEHPrZV2HqSB6RK5GOX2A== 0000014170-96-000018.txt : 19960928 0000014170-96-000018.hdr.sgml : 19960928 ACCESSION NUMBER: 0000014170-96-000018 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960723 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIDGES INVESTMENT FUND INC CENTRAL INDEX KEY: 0000014170 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 476027880 STATE OF INCORPORATION: NE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01209 FILM NUMBER: 96597809 BUSINESS ADDRESS: STREET 1: 8401 W DODGE RD STREET 2: SUITE 256 CITY: OMAHA STATE: NE ZIP: 68114 BUSINESS PHONE: 4023974700 MAIL ADDRESS: STREET 1: 8401 WEST DODGE ROAD STREET 2: SUITE 256 CITY: OMAHA STATE: NE ZIP: 68114 N-30D 1 BRIDGES INVESTMENT FUND, INC. SECOND QUARTER OR SEMI-ANNUAL SHAREHOLDER REPORT 1996 CONTENTS OF REPORT Pages 1 - 2 Shareholder Letter Exhibit 1 Portfolio Transactions from April 1, 1996, through June 30, 1996 Exhibit 2 Quarter-to-Quarter Changes in Financial Data Pages F1-F14 Unaudited Financial Statements for the Six Months Ended June 30, 1996 This report has been prepared for the information of the shareholders of Bridges Investment Fund, Inc. and is under no circumstances to be construed as an offering of shares of the Fund. Such offering is made only by Prospectus, a copy of which may be obtained by inquiry to the Fund's office. Shareholder Letter 1 July 22, 1996 July 22, 1996 Dear Shareholder: Second Quarter and First Half, 1996 Review - - - ------------------------------------------ The net asset value per share of the Fund was $23.42 on June 30, 1996. This price was 3.4% above the $22.66 net asset value per share at March 31, 1996, and up 8.7% from the year-end 1995 valuation of $21.54. The cash amounts distributed from 1996 investment income were $.1325 per share. Thus, the total value improvement from the First Half of 1996 operations was $2.0125 per share derived by adding $1.88 in price appreciation and $.1325 in dividend income. This $2.0125 per share increase in value, when compared to the beginning net asset value of $21.54, resulted in a 9.3% total return for the Fund for the First Six Months of 1996. The generally rising trend of prices for common stocks continued during the Second Quarter of 1996. The positive trend for stock prices was sustained by favorable earnings reports. Bond prices were somewhat weaker in response to higher interest rates during the First Half of 1996. Fund Operations - - - --------------- The net assets of the Fund were $27,108,210 on June 30, 1996, representing the highest value for any calendar quarter reporting date. Net assets advanced $1,082,906 from the March 31, 1996, total of $26,025,304, an increase of 4.2% Shareholder Letter 2 July 22, 1996 for the Second Quarter of 1996. For the First Six Months of 1996, net assets are up $3,055,464 or 12.7% from the $24,052,746 at December 31, 1995. On a trailing twelve month basis (June 30, 1995 to June 30, 1996) net assets grew from $21,416,325 to $27,108,210 -- a 26.6% improvement. There were 1,157,425 shares of capital stock outstanding on June 30, 1996. This level of shares outstanding represented a record high for any three month accounting statement period. The net gain in shares outstanding for the First Six Months of 1996 was 40,805 units, which resulted in a 3.6% advance in comparison to the 1,116,620 shares outstanding at the end of 1995. Net investment income was $308,288 for the First Six Months of 1996, compared to $308,520 for the same period in 1995. Net realized gains on investments for the First Six Months of 1996 were $13,137 compared to $19,328 for the same time frame in 1995. The net increase in unrealized appreciation was $1,986,619 for the First Six Months in 1996, compared to $2,818,482 achieved during the first two calendar quarters of 1995. Please refer to Exhibits 1 and 2 and pages F-1 through F-14 for specific details covering the Fund's recent portfolio transactions; the historical data with respect to capital gains distributions; and other financial statement information as of June 30, 1996. Dividend - - - -------- On July 9, 1996, the Board of Directors declared a $.1325 per share dividend on the shares of capital stock outstanding on the July 9, 1996 record date with this income distribution amount to be payable on or about July 22, Shareholder Letter 3 July 22, 1996 1996. This dividend is payable from net investment income earned during the April - June, 1996 Quarter. The Outlook - - - ----------- The U.S. industrial economy has raised its growth pace during the First Half of 1996 in comparison to the Last Half of 1995. Prospects for the balance of 1996 appear to be solid. However, the upward progress of corporate earnings is likely to be much less dynamic and somewhat more erratic than has been true of the exceptional profits growth for the 1992 - 1995 period. Equity valuations are above normal, but not speculatively high for those companies where consistent earnings improvements are achieved. This statement assumes that interest rates and inflationary prices will stay within the ranges established in recent years. With respect to consumer price inflation, particular attention should be paid to prices for energy, food, and newly negotiated wage rates in union contracts. The benign trends for the 1990's may be about to change adversely towards higher price levels and annualized rates of change than currently in effect. This possible scenario would be likely to depress price-earnings ratio valuations, thereby causing stock price vulnerability. Overall, the near term outlook continues to be positive without the potential for major gains that was present one to three years ago. The longer term trends remain on track with normal upbeat expectations. Shareholder Letter 4 July 22, 1996 Appreciation The Fund concluded 33 years of operations on June 30, 1996 on a very positive note, as described on page one of this letter and in the financial statements and Exhibits. On behalf of the Board of Directors and the Management of the Fund, I want to thank you once again for your investment in and support of our Fund through your investment in our shares and through the referral of other investors to our Fund from time to time. Cordially yours, Edson L. Bridges II President ELBII:elc Exhibit 1 ---------- PORTFOLIO TRANSACTIONS DURING THE PERIOD FROM APRIL 1, 1996, THROUGH JUNE 30, 1996
Bought or Held After Securities Received Transaction ---------- --------- ----------- Common Stocks Unless $1,000 Par $1,000 Par Described Otherwise Value (M) Value (M) or Shares or Shares American International Group 400 1,000 Amgen, Inc. 500 1,000 (1) Electronic Data Systems Corp. 4,223 4,223 First National of Nebraska 5 225 (2) GAP, Inc. 7,000 14,000 (3) HNC Software, Inc. 1,000 2,000 (4) Johnson & Johnson 5,000 10,000 (5) Monsanto Company 14,000 17,500 (6) PepsiCo, Inc. 12,000 24,000 Various issues of Commercial 33,675M 2,685M Paper Notes Purchased during 2nd Qtr., 1996 Sold or Held After Securities Exchanged Transaction ---------- --------- ----------- $1,000 Par $1,000 Par Common Stocks Unless Value (M) Value (M) Described Otherwise or Shares or Shares Burlington Northern Santa Fe 3,191 -- (7) General Motors Class E 4,223 -- (8) U.S. Treasury Notes 200M -- 9.375% due 04/15/96 Various issues of Commercial Paper 33,160M -- Notes maturing during 2nd Qtr., 1996 (1) - Received in exchange for 4,223 shares of General Motors Class E on June 10, 1996. (2) - Received 7,000 shares in a 2-for-1 stock split on April 11, 1996. (3) - Received 1,000 shares in a 2-for-1 stock split on April 4, 1996. (4) - Received 5,000 shares in a 2-for-1 stock split on June 12, 1996. (5) - Received 14,000 shares in a 5-for-1 stock split on June 6, 1996. (6) - Received 12,000 shares in a 2-for-1 stock split on May 29, 1996. (7) - Exchanged for 4,223 shares of Electronic Data Systems Corp. on June 10, 1996. (8) - Matured 200M at par on April 15, 1996.
Exhibit 2 -------- BRIDGES INVESTMENT FUND, INC. ---------------------------- HISTORICAL FINANCIAL INFORMATION
Valuation Net Shares Net Asset Dividend/ Capital Date Assets Outstanding Value/Share Share Gains/Share - - - ----------- ------ ----------- ----------- -------- ----------- 07-01-63 $ 109,000 10,900 $10.00 $ - $ - 09-30-63 109,764 10,900 10.07 - - 12-31-63 159,187 15,510 10.13 .07 - 03-31-64 202,354 19,105 10.59 .07 - 06-30-64 253,932 23,438 10.83 .07 - 09-30-64 310,307 28,286 10.97 .07 - 12-31-64 369,149 33,643 10.97 .07 - 03-31-65 434,523 38,531 11.28 .075 .028 06-30-65 491,068 44,667 10.99 .07 - 09-30-65 558,913 47,710 11.71 .07 - 12-31-65 621,241 51,607 12.04 .07 - 03-31-66 661,711 55,652 11.89 .085 - 06-30-66 643,920 57,716 11.16 .07 - 09-30-66 592,628 58,610 10.11 .07 - 12-31-66 651,282 59,365 10.97 .07 - 03-31-67 728,115 60,181 12.10 .085 - 06-30-67 753,075 61,364 12.27 .07 - 09-30-67 823,967 62,810 13.12 .07 - 12-31-67 850,119 64,427 13.20 .07 - 03-31-68 812,416 65,607 12.38 .105 - 06-30-68 1,013,629 72,214 14.04 .07 - 09-30-68 1,046,852 72,633 14.41 .07 - 12-31-68 1,103,734 74,502 14.81 .07 - 03-31-69 1,083,278 77,393 14.00 .15 - 06-30-69 1,030,784 79,169 13.02 .07 - 09-30-69 1,063,290 83,291 12.77 .07 - 12-31-69 1,085,186 84,807 12.80 .07 - 03-31-70 1,061,534 87,349 12.15 .16 - 06-30-70 843,133 88,367 9.54 .07 - 09-30-70 959,114 89,417 10.73 .07 - 12-31-70 1,054,162 90,941 11.59 .07 - 03-31-71 1,168,919 91,819 12.73 .16 - 06-30-71 1,198,777 92,573 12.94 .07 - 09-30-71 1,200,753 92,723 12.95 .07 - 12-31-71 1,236,601 93,285 13.26 .07 - 03-31-72 1,285,684 93,661 13.73 .14 .08 06-30-72 1,228,951 93,834 13.10 .07 - 09-30-72 1,208,454 92,258 13.10 .07 - 12-31-72 1,272,570 93,673 13.59 .07 - 03-31-73 1,152,089 96,695 11.91 .13 .07 06-30-73 1,073,939 97,943 10.96 .07 - 09-30-73 1,131,789 99,353 11.39 .07 - 12-31-73 1,025,521 100,282 10.23 .07 - 03-31-74 988,697 101,763 9.72 .14 - 06-30-74 863,820 101,578 8.50 .07 - 09-30-74 667,051 101,292 6.59 .07 - 12-31-74 757,545 106,909 7.09 .07 - 03-31-75 909,125 106,162 8.56 .14 - 06-30-75 1,028,687 106,517 9.66 .07 - 09-30-75 954,187 107,651 8.86 .07 - 12-31-75 1,056,439 111,619 9.46 .07 - 03-31-76 1,230,953 115,167 10.69 .16 - 06-30-76 1,265,767 117,506 10.77 .07 - 09-30-76 1,313,363 121,229 10.83 .07 - 12-31-76 1,402,661 124,264 11.29 .08 - 03-31-77 1,335,592 126,714 10.54 .188 .062 06-30-77 1,456,451 134,575 10.82 .08 - 09-30-77 1,450,573 139,402 10.41 .08 - 12-31-77 1,505,147 145,252 10.36 .08 - 03-31-78 1,418,417 146,380 9.69 .211 .049 06-30-78 1,523,758 145,470 10.47 .09 - 09-30-78 1,672,364 150,729 11.10 .09 - 12-31-78 1,574,097 153,728 10.24 .09 - 03-31-79 1,724,695 162,627 10.61 .204 .051 06-30-79 1,773,427 163,640 10.84 .09 - 09-30-79 1,913,242 167,426 11.43 .09 - 12-31-79 1,872,059 165,806 11.29 .09 - 03-31-80 1,769,935 170,882 10.36 .25 .0525 06-30-80 1,974,288 169,675 11.64 .10 - 09-30-80 2,204,689 173,549 12.70 .10 - 12-31-80 2,416,997 177,025 13.65 .10 - 03-31-81 2,424,976 184,148 13.17 .29 .0868 06-30-81 2,356,007 186,307 12.65 .11 - 09-30-81 2,128,956 183,447 11.61 .11 - 12-31-81 2,315,441 185,009 12.52 .12 - 03-31-82 2,165,531 194,140 11.15 .39 .19123 06-30-82 2,074,816 190,067 10.92 .13 - 09-30-82 2,262,073 189,837 11.92 .13 - 12-31-82 2,593,411 195,469 13.27 .13 - 03-31-83 2,815,081 209,390 13.44 .40 .2500 06-30-83 3,030,744 212,068 14.29 .15 - 09-30-83 3,210,564 223,059 14.39 .15 - 12-31-83 3,345,988 229,238 14.60 .15 - 03-31-84 3,279,542 247,700 13.24 .32 .5000 06-30-84 3,322,155 262,695 12.65 .16 - 09-30-84 3,554,876 263,783 13.48 .16 - 12-31-84 3,727,899 278,241 13.40 .16 - 03-31-85 4,058,327 300,068 13.52 .22 .6800 06-30-85 4,351,707 305,496 14.24 .16 - 09-30-85 4,260,686 310,379 13.73 .16 - 12-31-85 4,962,325 318,589 15.58 .16 - 03-31-86 5,663,449 347,479 16.30 .208 .86227 06-30-86 6,174,120 365,531 16.89 .16 - 09-30-86 6,392,215 399,871 15.99 .16 - 12-31-86 6,701,786 407,265 16.46 .16 - 03-31-87 8,766,205 491,228 17.85 .196 .79447 06-30-87 9,214,305 509,569 18.08 .16 - 09-30-87 9,921,139 530,566 18.70 .16 - 12-31-87 7,876,275 525,238 15.00 .14 .24513 03-31-88 8,649,901 565,608 15.29 .16 - 06-30-88 9,027,829 574,563 15.71 .15 - 09-30-88 8,986,977 575,956 15.60 .16 - 12-31-88 8,592,807 610,504 14.07 .38 1.10967 03-31-89 9,103,009 618,331 14.72 - - 06-30-89 9,531,124 614,861 15.50 .16 - 09-30-89 10,815,006 652,207 16.58 .16 - 12-31-89 10,895,182 682,321 15.97 .35 0.53769 03-31-90 11,000,740 695,558 15.82 - - 06-30-90 11,521,748 696,414 16.54 .16 0.02646 09-30-90 10,534,037 706,268 14.92 .16 - 12-31-90 11,283,448 744,734 15.15 .35 0.40297 03-31-91 12,685,391 759,477 16.70 - - 06-30-91 12,485,281 766,387 16.29 .16 - 09-30-91 13,225,379 780,213 16.95 .16 - 12-31-91 14,374,679 831,027 17.30 .34 0.29292 03-31-92 14,428,305 851,349 16.95 - - 06-30-92 14,691,191 863,019 17.02 .15 - 09-30-92 15,940,013 910,936 17.50 .16 - 12-31-92 17,006,789 971,502 17.51 .325 0.15944 03-31-93 18,071,613 1,008,275 17.92 - - 06-30-93 17,621,101 992,755 17.75 .15 - 09-30-93 17,949,559 999,163 17.96 .15 - 12-31-93 17,990,556 1,010,692 17.80 .3125 0.17075 03-31-94 17,777,177 1,021,219 17.41 - - 06-30-94 17,953,364 1,033,984 17.36 .14 - 09-30-94 18,472,176 1,036,473 17.82 .15 - 12-31-94 18,096,297 1,058,427 17.10 .30 0.17874 03-31-95 19,835,494 1,072,309 18.50 - - 06-30-95 21,416,325 1,076,463 19.90 .14 - 09-30-95 22,527,409 1,082,829 20.80 .14 - 12-31-95 24,052,746 1,116,620 21.54 .295 0.19289 03-31-96 26,025,304 1,148,429 22.66 - - 06-30-96 27,108,210 1,157,425 23.42 .1325 -
F-1 BRIDGES INVESTMENT FUND, INC. ---------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- JUNE 30, 1996 ------------- (Unaudited)
Number Market Title of Security of Shares Value ----------------- --------- ----- (Note 1) COMMON STOCKS (73.7%) Aircraft - Manufacturing (1.9%) - The Boeing Co. 6,000 $ 522,750 ----------- Amusements - Recreation - Sporting Goods (0.8%) NIKE, Inc. 2,000 $ 205,500 ------------ Banking and Finance (5.7%) - First National of Nebraska, Inc. 225 $ 877,500 NationsBank Corporation 3,000 247,875 Norwest Corporation 6,000 209,250 State Street Boston Corp. 4,000 204,000 ----------- $ 1,538,625 ----------- Beverages - Soft Drinks (3.1%) - PepsiCo, Inc. 24,000 $ 852,000 ----------- Building Materials - Forest Products (0.8%) - Georgia Pacific Corp. 3,000 $ 213,000 ----------- Chemicals (7.9%) - The Dow Chemical Company 7,000 $ 532,000 Du Pont (E.I.) De Nemours & Company 4,000 316,500 Eastman Kodak Company 7,000 544,250 Monsanto Company 17,500 568,750 Morton International, Inc. 5,000 186,250 ----------- $ 2,147,750 ----------- Computers - Hardware and Software (6.2%) - Cisco Systems, Inc.* $ 113,250 2,000 Electronic Data Systems Corp. 4,223 226,986 HNC Software, Inc.* 92,500 2,000 Hewlett-Packard Co. 6,000 597,750 International Business Machines Corporation 1,000 99,000 Microsoft Corporation* 480,500 4,000 Sun Microsystems, Inc.* 58,875 1,000 ----------- $ 1,668,861 ----------- * Nonincome-producing security
F-2 BRIDGES INVESTMENT FUND, INC. ----------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- (Continued) JUNE 30, 1996 ------------- (Unaudited)
Number Market Title of Security of Shares Value ----------------- --------- ------ (Note 1) COMMON STOCKS (Continued) Drugs - Medicines - Cosmetics (7.2%) - Abbott Laboratories 8,000 $ 348,000 Amgen, Inc.* 54,000 1,000 Bristol-Myers Squibb Co. 3,000 270,000 Elan Corporation PLC ADR* 114,500 2,000 Johnson & Johnson 10,000 495,000 Merck & Co., Inc. 10,000 646,250 Perrigo Company* 33,750 3,000 ----------- $ 1,961,500 ----------- Electrical Equipment and Supplies (2.0%) - General Electric Co. 6,000 $ 520,500 Linear Technology Corporation 1,000 30,000 ----------- $ 550,500 ----------- Electronics (2.9%) - Intel Corporation 4,000 $ 293,752 Motorola, Inc. 8,000 502,000 ----------- $ 795,752 ----------- Finance - Real Estate (1.9%) - Federal Home Loan Mortgage Corporation 6,000 $ 513,000 ----------- Finance - Services (0.4%) - First USA, Inc. 2,000 $ 110,000 ----------- Food - Miscellaneous Products (3.8%) - Philip Morris Companies, Inc. 10,000 $ 1,040,000 ----------- Forest Products & Paper (0.8%) Kimberly-Clark Corporation 3,000 $ 231,750 ----------- Insurance - Multiline (1.5%) - American International Group, Inc. 1,000 $ 98,625 General Re Corp. 2,000 304,500 ----------- $ 403,125 ----------- Insurance - Municipal Bond (0.9%) - MBIA, Inc. 3,000 $ 233,625 ----------- * Nonincome-producing security
F-3 BRIDGES INVESTMENT FUND, INC. ----------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- (Continued) JUNE 30, 1996 ------------- (Unaudited)
Number Market Title of Security of Shares Value ----------------- --------- ------ (Note 1) COMMON STOCKS (Continued) Lumber and Wood Products (0.8%) - Weyerhaeuser Company 5,000 $ 212,500 ----------- Machinery - Construction & Mining (0.7%) - Caterpillar, Inc. 3,000 $ 203,250 ----------- Metal Products - Miscellaneous (1.0%) - Nucor Corporation 5,500 $ 278,438 ----------- Motion Pictures and Theatres (1.6%) - Walt Disney Co. 7,000 $ 440,125 ----------- Petroleum Producing (6.5%) - Amoco Corporation 5,000 $ 360,625 Atlantic Richfield Company 2,000 236,500 Chevron Corporation 10,000 590,000 Exxon Corporation 4,000 347,500 Mobil Corporation 2,000 224,750 ----------- $ 1,759,375 ----------- Printing and Engraving (0.7%) - Deluxe Corp. 5,000 $ 177,500 ----------- Publishing - Newspapers (1.0%) - Gannett Co., Inc. 4,000 $ 283,000 ----------- Publishing - Electronic (1.6%) - Reuters Holdings PLC 6,000 $ 435,000 ----------- Restaurants - Food Service (0.5%) - Apple South, Inc. 3,500 $ 93,625 Brinker International, Inc.* 45,000 ----------- 3,000 $ 138,625 ----------- Retail Stores - Apparel and Clothing (1.7%) - Gap, Inc. 14,000 $ 449,750 ----------- * Nonincome-producing security
F-4 BRIDGES INVESTMENT FUND, INC. ----------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- (Continued) JUNE 30, 1996 ------------- (Unaudited)
Number Market Title of Security of Shares Value ----------------- --------- ------ (Note 1) COMMON STOCKS (Continued) Retail Stores - Department (2.3%) - Dayton Hudson Corporation 3,500 $ 360,938 Wal-Mart Stores, Inc. 10,000 253,750 ----------- $ 614,688 ----------- Retail Stores - Variety (1.0%) - Albertson's Inc. 6,500 $ 268,937 ----------- Telecommunications (4.3%) - A T & T Corp. 5,000 $ 310,000 GTE Corporation 10,000 447,500 Sprint Corporation 8,000 336,000 360 Communications Company* 63,984 2,666 ----------- $ 1,157,484 ----------- Transportation - Railroads (1.0%) - Union Pacific Corporation 4,000 $ 279,500 ----------- Utilities - Telecommunications (0.5%) - U S West Communications Group 4,000 $ 128,000 ----------- Waste Management (0.7%) - WMX Technologies, Inc. 5,500 $ 180,125 ----------- TOTAL COMMON STOCKS (Cost - $11,255,270) $19,994,035 ----------- PREFERRED STOCKS (0.7%) Transportation - Aircraft (0.7%) - Delta Air Lines $3.50 Series C Convertible Preferred 3,000 $ 189,000 ----------- TOTAL PREFERRED STOCKS (Cost - $150,645) $ 189,000 ----------- TOTAL STOCKS (Cost - $11,405,915) $20,183,035 ----------- * Nonincome-producing security
F-5 BRIDGES INVESTMENT FUND, INC. ----------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- (Continued) JUNE 30, 1996 ------------- (Unaudited)
Principal Market Title of Security Amount Value ----------------- --------- ------ (Note 1) DEBT SECURITIES (24.9%) Broadcast - Radio and Television (0.2%)- Comcast Corporation 3.375% Step-Up Convertible Subordinated Debentures due September 9, 2005 $ 50,000 $ 46,937 ----------- Food - Miscellaneous Products (0.4%) - Super Valu Stores, Inc. 8.875% Promissory Notes, due June 15, 1999 $100,000 $ 105,708 ----------- U.S. Government (11.2%) - U.S. Treasury, 8.875% Notes, due November 15, 1997 200,000 207,437 U.S. Treasury, 9.000% Notes, due May 15, 1998 200,000 210,063 U.S. Treasury, 9.125% Notes, due May 15, 1999 200,000 214,500 U.S. Treasury, 8.750% Notes, due August 15, 2000 200,000 216,562 U.S. Treasury, 8.000% Notes, due May 15, 2001 200,000 212,625 U.S. Treasury, 7.500% Notes, due May 15, 2002 200,000 209,438 U.S. Treasury, 10.750% Bonds due February 15, 2003 200,000 244,000 U.S. Treasury, 7.250% Notes, due May 15, 2004 200,000 207,125 U.S. Treasury, 7.50% Notes, due February 15, 2005 200,000 210,187 U.S. Treasury, 9.375% Bonds, due February 15, 2006 200,000 237,438
F-6 BRIDGES INVESTMENT FUND, INC. ----------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- (Continued) JUNE 30, 1996 ------------- (Unaudited)
Principal Market Title of Security Amount Value ----------------- ---------- ------ (Note 1) DEBT SECURITIES (Continued) U.S. Government - (Continued) - - - ------------------------------- U.S. Treasury, 7.625% Bonds, due February 15, 2007 200,000 207,375 U.S. Treasury, 8.75% Bonds, due November 15, 2008 200,000 221,875 U.S. Treasury, 9.125% Bonds, due May 15, 2009 200,000 227,437 U.S. Treasury, 7.500% Bonds, due November 15, 2016 200,000 209,813 ----------- $ 3,035,875 ----------- Household Appliances and Utensils (0.4%) - Maytag Corp., 9.75% Notes, due May 15, 2002 $100,000 $ 112,666 ----------- Office Equipment and Supplies (0.4%) - Xerox Corporation, 9.750% Notes, due March 15, 2000 $100,000 $ 109,250 ----------- Retail Stores - Broad Line Chains (0.5%) - Costco Wholesale Corporation 5.750% Convertible Subordinated Debentures, due May 15, 2002 $150,000 $ 139,125 ----------- Retail Stores - Department (1.0%) - Dillard Department Stores, Inc. 7.850% Debentures, due October 1, 2012 $150,000 $ 153,804 Sears Reobuck & Co. 9.375% Debentures, due November 1, 2011 100,000 116,531 ----------- $ 270,335 ----------- Textiles - Miscellaneous (0.4%) - Guilford Mills, Inc. 6.000% Convertible Subordinated Debentures due September 15, 2012 $100,000 $ 97,750 -----------
F-7 BRIDGES INVESTMENT FUND, INC. ---------------------------- SCHEDULE OF PORTFOLIO INVESTMENTS ---------------------------------- (Continued) JUNE 30, 1996 ------------- (Unaudited)
Principal Market Title of Security Amount Value ----------------- --------- ------- (Note 1) DEBT SECURITIES (Continued) Transportation - Railroads (0.5%) - Union Pacific Corporation 6.00% Notes, due September 1, 2003 $ 150,000 $ 139,219 ------------ Commercial Paper - Short Term (9.9%) - Ford Motor Credit Corp. Commercial Paper Note 5.35% due July 2, 1996 $1,300,000 $ 1,300,000 General Electric Credit Corp. Commercial Paper Note 5.35% due July 2, 1996 $ 385,000 385,000 Prudential Funding Corp. Commercial Paper Note 5.35% due July 2, 1996 $1,000,000 $ 1,000,000 ------------ $ 2,685,000 ------------ TOTAL DEBT SECURITIES (Cost - $6,695,518) $ 6,741,865 ------------ TOTAL INVESTMENTS IN SECURITIES (Cost - $18,101,433) (99.3%) $26,924,900 CASH AND RECEIVABLES LESS TOTAL LIABILITIES (0.7%) 183,310 ----------- NET ASSETS, June 30, 1996 (100.0%) $27,108.210 ============ The accompanying notes to financial statements are an integral part of this schedule.
F-8 BRIDGES INVESTMENT FUND, INC. ---------------------------- STATEMENT OF ASSETS AND LIABILITIES ---------------------------------- JUNE 30, 1996 ------------- (Unaudited)
ASSETS Amount Investments, at market value (Note 1) Common and preferred stocks (cost $11,405,915) $20,183,035 Debt securities (cost $6,695,518) 6,741,865 ---------- Total Investments $26,924,900 Cash 111,270 Receivables Dividends and interest 117,807 Subscriptions to capital stock 8,204 ------- TOTAL ASSETS $27,162,181 =========== LIABILITIES Accrued operating expenses 53,971 ----------- TOTAL LIABILITIES $ 53,971 ----------- NET ASSETS Capital stock, $1 par value - Authorized 3,000,000 shares, less 663,062 shares redeemed; 1,820,487 shares issued; 1,157,425 shares outstanding (Note 6) $ 1,157,425 Paid-in surplus - Excess over par value of amounts received from sale of 1,820,487 shares, less amounts paid out in redeeming 663,062 shares (Note 6) 16,961,732 ---------- Net capital paid in on shares $18,119,157 Accumulated undistributed net investment income 155,532 Accumulated net realized gain on investment transactions 4,074 Net unrealized appreciation on investments (Note 1) 8,823,468 Accumulated undistributed equilization amount (Note 1) 5,979 ----------- TOTAL NET ASSETS $27,108,210 =========== TOTAL LIABILITIES AND NET ASSETS $27,162,181 =========== NET ASSET VALUE PER SHARE (Note 5) $23.42 ====== OFFERING PRICE PER SHARE (Note 5) $23.42 ====== REDEMPTION PRICE PER SHARE (Note 5) $23.42 ====== The accompanying notes to financial statements are an integral part of this statement.
F-9 BRIDGES INVESTMENT FUND, INC. ---------------------------- STATEMENT OF OPERATIONS ------------------------ FOR THE SIX MONTHS ENDED JUNE 30, 1996 -------------------------------------- (Unaudited)
INVESTMENT INCOME (Note 1) Amount Interest $221,089 Dividends 202,499 ------- Total Investment Income $423,588 EXPENSES Management fees (Note 2) $ 65,756 Custodian fees 17,289 Professional services 5,450 Insurance 4,698 Bookkeeping services 5,261 Printing and supplies 7,912 Dividend disbursing and transfer agent fees (Note 3) 5,387 Computer programming 2,250 Taxes and licenses 532 Foreign Taxes Paid 765 -------- Total Expenses $ 115,300 --------- NET INVESTMENT INCOME $ 308,288 --------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS, NET (Note 1) Net realized gain on transactions in investment securities $ 13,137 Net increase in unrealized appreciation of investments 1,986,619 --------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS $1,999,756 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,308,044 ========== The accompanying notes to financial statements are an integral part of this statement.
F-10 BRIDGES INVESTMENT FUND, INC. ---------------------------- STATEMENTS OF CHANGES IN NET ASSETS ----------------------------------- FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995 ---------------------------------------------- (Unaudited)
1996 1995 ---- ---- INCREASE IN NET ASSETS Operations - Net investment income $ 308,288 $ 308,520 Net realized gain/(loss) on transactions in investment securities (Note 1) 13,137 19,328 Net increase (decrease) in unrealized appreciation of investments (Note 1) 1,986,619 2,818,482 ----------- ----------- Net increase in net assets resulting from operations $ 2,308,044 $ 3,146,330 Net equalization credits (Note 1) 1,779 (2,093) Distributions to shareholders from - Net investment income (Note 7) (152,756) (147,222) Net realized gain from investment transactions - - Equalization (Note 1) - - Net capital share transactions (Note 6) 898,397 323,013 ----------- ----------- Total Increase in Net Assets $ 3,055,464 $ 3,320,028 NET ASSETS: Beginning of year 24,052,746 18,096,297 ---------- ----------- End of year (including accumulated undistributed net investment income of $161,511 and $162,441, respectively) $27,108,210 $21,416,325 ========== =========== The accompanying notes to financial statements are an integral part of these statements.
F-11 BRIDGES INVESTMENT FUND, INC. ---------------------------- NOTES TO FINANCIAL STATEMENTS ------------------------------ JUNE 30, 1996 ------------- (Unaudited) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ------------------------------------------ Bridges Investment Fund, Inc. (Fund) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The primary investment objective of the Fund is long term capital appreciation. In pursuit of that objective, the Fund invests primarily in common stocks. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investments - ----------- Security transactions are recorded on the trade date at purchase cost or sales proceeds. Dividend income is recognized on the ex- dividend date, and interest income is recognized on an accrual basis. Securities owned are reflected in the accompanying statement of assets and liabilities and the schedule of portfolio investments at quoted market value. Quoted market value represents the last recorded sales price on the last business day of the calendar year for securities traded on a national securities exchange. If no sales were reported on that day, quoted market value represents the closing bid price. The cost of investments reflected in the statement of assets and liabilities and the schedule of portfolio investments is the same as the basis used for Federal income tax purposes. The difference between cost and quoted market value of securities is reflected separately as unrealized appreciation (depreciation) as applicable.
1996 1995 Net Change ---- ---- ---------- Net unrealized appreciation (depreciation): Aggregate gross unrealized appreciation on securities $9,032,573 $5,110,945 Aggregate gross unrealized depreciation on securities (209,105) (205,656) Net $8,823,468 $4,905,289 $3,918,179 ========== ========== ==========
The net realized gain (loss) from the sales of securities is determined for income tax and accounting purposes on the basis of the cost of specific securities. F-12 B. Federal Income Taxes - -------------------- It is the Fund's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, including the distribution of substantially all taxable income including net realized gains on sales of investments. Therefore, no provision is made for Federal income taxes. C. Distribution To Shareholders - ---------------------------- The Fund accrues dividends to shareholders on the ex-dividend date. D. Equalization - ------------ The Fund uses the accounting practice of equalization by which a portion of the proceeds from sales and costs of redemption of capital shares, equivalent on a per share basis to the amount of undistributed net investment income on the date of the transactions, is credited or charged to undistributed income. As a result, undistributed net investment income per share is unaffected by sales or redemption of capital shares. (2) INVESTMENT ADVISORY CONTRACT ---------------------------- Under an Investment Advisory Contract, Bridges Investment Counsel, Inc. (Investment Adviser) furnishes investment advisory services and performs certain administrative functions for the Fund. In return, the Fund has agreed to pay the Investment Adviser a fee computed on a quarterly basis at the rate of 1/8 of 1% of the average net asset value of the Fund during the quarter, equivalent to 1/2 of 1% per annum. Certain officers and directors of the Fund are also officers and directors of the Investment Adviser. These officers do not receive any compensation from the Fund other than that which is received indirectly through the Investment Adviser. The contract between the Fund and the Investment Adviser provides that total expenses of the Fund in any year, exclusive of stamp and other taxes, but including fees paid to the Investment Adviser, shall not exceed, in total, a maximum of 1 and 1/2% of the average month end net asset value of the Fund for the year. Amounts, if any, expended in excess of this limitation are reimbursed by the Investment Adviser as specifically identified in the Investment Advisory Contract. F-13 (3) DIVIDEND DISBURSING AND TRANSFER AGENT -------------------------------------- Effective October 1, 1987, dividend disbursing and transfer agent services are provided by Bridges Investor Services, Inc. (Transfer Agent). The fees paid to the Transfer Agent are intended to approximate the cost to the Transfer Agent for providing such services. Certain officers and directors of the Fund are also officers and directors of the Transfer Agent. (4) SECURITY TRANSACTIONS --------------------- The cost of long term investment purchases during the first six months ended June 30, was: 1996 1995 ---- ---- United States government obligations $ 493,695 $ 199,496 Other Securities 890,290 24,472 --------- --------- Total Cost $1,383,985 $ 223,968 ========== ========== Net proceeds from sales of long term investments during the first six months ended June 30, were: 1996 1995 ---- ---- United States government obligations $ 423,527 $ 200,000 Other Securities 695,583 368,238 --------- --------- Total Net Proceeds $1,119,110 $ 568,238 ========== ========== Total Cost Basis of Securities Sold $1,105,973 $ 548,910 ========== ========== (5) NET ASSET VALUE --------------- The net asset value per share represents the effective price for all subscriptions and redemptions. F-14 (6) CAPITAL STOCK ------------- Shares of capital stock issued and redeemed are as follows: 1996 1995 ---- ---- Shares sold 53,861 44,416 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 12,389 15,434 ------ ------ 66,250 59,850 Shares redeemed 25,445 41,813 ------- ------ Net increase 40,805 18,037 ======= ====== Value of capital stock issued and redeemed is as follows: 1996 1995 ---- ---- Shares sold $1,172,684 $ 813,446 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 302,602 276,255 ---------- ---------- $1,475,286 $1,089,701 Shares redeemed 576,889 766,688 --------- ---------- Net increase $ 898,397 $ 323,013 ========== ========== (7) DISTRIBUTION TO SHAREHOLDERS ---------------------------- On July 9, 1996 a distribution of $.1325 per share aggregating $153,876.35 was declared to shareholders of record on July 9, 1996, to be payable on July 22, 1996. (8) DERIVATIVE FINANCIAL INSTRUMENTS -------------------------------- In October, 1994, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 119, Disclosure about Derivative Financial Investments and Fair Value of Financial Instruments. The Fund has not entered into any such investment or investment contracts. A covered call option contract is a form of a financial derivative instrument. The Fund's investment and policy restrictions do permit the Fund to sell or write covered call option contracts under certain circumstances and limitations as set forth in the Fund's prospectus. However, the Fund has never entered into a covered call option under those circumstances. -----END PRIVACY-ENHANCED MESSAGE-----