-----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, B3BrwvsxbjKs5ihKA9eJxrFU2qIiGn1gZd8OJB8jRFnq/Gl0EbUci4fQn0Lz9c7h Z1NHrYjCzIzpaTL3VKA2HQ== 0000014170-97-000006.txt : 19970430 0000014170-97-000006.hdr.sgml : 19970430 ACCESSION NUMBER: 0000014170-97-000006 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970429 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIDGES INVESTMENT FUND INC CENTRAL INDEX KEY: 0000014170 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 476027880 STATE OF INCORPORATION: NE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-01209 FILM NUMBER: 97589524 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-30B-2 1 BRIDGES INVESTMENT FUND, INC. FIRST QUARTER 1997 CONTENTS OF REPORT Pages 1 - 3 Shareholder Letter Exhibit 1 Portfolio Transactions from January 1, 1997, through March 31, 1997 Exhibit 2 Quarter-to-Quarter Changes in Financial Data Exhibit 3 Reports to Stockholders of Management Companies Pages F1-F14 Unaudited Financial Statements for the Three Months Ended March 31, 1997 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. BRIDGES INVESTMENT FUND, INC. 8401 West Dodge Road Omaha, Nebraska 68114 Telephone 402-397-4700 Facsimile 402-397-8617 Directors Frederick N. Backer Edson L. Bridges II Edson L. Bridges III N. P. Dodge, Jr. John W. Estabrook Jon D. Hoffmaster John J. Koraleski Roger A. Kupka Gary L. Petersen Roy A. Smith L.B. Thomas Officers Edson L. Bridges II - Chairman and Chief Executive Officer Edson L. Bridges III - President Douglas P. Person - Vice President Rosemary M. Teckmeyer - Vice President Mary Ann Mason - Secretary Kathleen J. Stranik - Assistant Secretary Nancy K. Dodge - Treasurer Auditor Arthur Andersen LLP 1700 Farnam Street Omaha, Nebraska 68102 Corporate Counsel Baird, Holm, McEachen, Pedersen, Hamann & Strasheim 1500 Woodmen Tower Omaha, Nebraska 68102 April 25, 1997 Dear Shareholder: First Quarter Review - -------------------- The net asset value per share of the Fund was $24.99 on March 31, 1997. This price was 1.7% higher than the $24.56 net asset value per share at year- end, 1996. The $24.99 price was the highest end of the quarter valuation achieved in the history of the Fund. The Dow Jones Industrial Average and the Standard & Poor's 500 Composite Index both advanced to new all time high points during the First Quarter of 1997 in response to a stronger than expected U.S. economy and the potential improvements for corporate earnings related to that trend. Operations - ---------- The net assets of the Fund were $30,255,441 on March 31, 1997, representing the highest value for any calendar quarter reporting date in the history of the Fund. Net assets grew $1,005,953 from the 1996 year ending total of $29,249,488, an increase of 3.4% for the First Quarter of 1997. There were 1,210,627 shares of capital stock outstanding on March 31, 1997. 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 Quarter of 1997 was 19,796, which constituted a 1.7% advance over the 1,190,831 shares outstanding at the end of 1996. Net investment income was $163,218 for the First Quarter of 1997 compared to $153,898 for the same period one year ago, Net realized gains were $107,499 on the securities portfolio for the Fund for the quarter ending March 31, 1997. There were $22,002 in net realized losses in the Fund's portfolio for the comparable period in 1996. The Fund's unaudited financial statements, appearing on pages F-1 through F-14, provide the Schedule of Portfolio Investments, the Statement of Assets and Liabilities, the Statement of Operations, and the Notes to Financial Statements as of March 31, 1997. These documents constitute our basic report to you. Please refer to Exhibits 1 and 2 for the Fund's portfolio transactions in the current quarter and the historical information on our operations with respect to net assets, shares outstanding, net asset value per share, dividends, and capital gains distributions. Required Reports - ---------------- Rule 30 d-1 (6) of the General Rules and Regulations under the Investment Company Act of 1940, as amended by the Securities and Exchange Commission, requires certain reports to stockholders with respect to any matter that was submitted to a shareholder vote during the period covered by the shareholder report. The Annual Meeting of Shareholders of the Fund was held on February 18, 1997. The information required to be reported with respect to this meeting appears in Exhibit 3. A similar presentation will be made each time there is an annual or special meeting, and, in the instance of this report, the same information will be republished in January, 1998 to fulfill requirements in connection with proxy solicitation for the next annual meeting. Cash Distribution On April 11, 1997, the Board of Directors declared a $.1325 per share dividend on the shares of capital stock outstanding on April 11, 1997 -- the record date for this income distribution. The dividend amount will be payable on or about April 25, 1997. This dividend is payable from net investment income earned during the January - March, 1997, Quarter. Prospectus - ----------- This letter transmits the 1997 edition of the Fund's Prospectus that became effective on April 25, 1997. The Prospectus is Part A of a three segment filing with the Securities and Exchange Commission in Washington, D.C. Part B is the Statement of Additional Information, and Part C contains Other Information. The Fund will mail Part A with this letter. Please notify Mrs. Mary Ann Mason, Secretary of the Fund, if you wish to receive Part B and/or Part C, and she will mail copies of the 1997 revisions in these documents to you. The Annual Report for 1996 is an integral part of the Prospectus offering for 1997. Each shareholder has been mailed or personally received an Annual Report for 1996 with their proxy statement in January, 1997 or when he or she made an original purchase transaction in the Fund subsequent to the January 23, 1997 date of issuance for this report. Any person who desires another copy of the Annual Report for 1996 should request that document from Mrs. Mason. New Officers - ------------ Mr. Edson L. Bridges II was elected Chairman and Chief Executive Officer, and Mr. Edson L. Bridges III was elected President of the Fund at the April 11, 1997 meeting of the Board of Directors where all other officers were re-elected to their regular positions. Mr. Bridges II turned the portfolio management responsibilities for the Fund over to Mr. Bridges III at the close of business on that date. Mr. Bridges III, known within our organization as Ted, has served for many years as the back-up portfolio manager to Edson. A good number of the common stocks within the present portfolio of the Fund have been Ted's research selections. Edson will serve as the back-up portfolio manager to Ted for the next twelve months. As Chairman, Edson will focus upon the non-portfolio business matters for the Fund for which he has normally exercised responsibility. This change in assignments for the two top officers was made at the request of Mr. Bridges II to provide the maximum benefit to the Fund's portfolio from the knowledge and experience accumulated by Mr. Bridges III over a considerable period of time. Both senior officers of the Fund believe their new positions reflect a seamless change for the succession of management that will continue a partnership that utilizes their best personal strengths for the foreseeable future. Outlook - ------- The forward tilt to the U.S. economy is still intact after six years of recovery that began in February, 1991. The word tilt was used to create a contrast with a normal cyclical advance that usually materalizes into a boom or burst of energy in the last phase before a recession. Our 1997 economy is not in the typical post-World War II pattern. The Fund's management expects sufficiently positive business conditions to keep the corporate profit environment on a generally positive path. The preference by investors for common stocks is likely to remain strong because the relative potential for total returns is expected to be higher for equities than for fixed income securities. The preference for common stocks in U.S. markets has developed an environment for above average price to earnings ratios for many securities. To some degree, stock price levels are, or will be, vulnerable to profit taking or defensive moves by some equity owners. However, trading volume in stocks remains high, and, at this point in time, the market top for the mid-1990's upward phase may not have been reached. Concluding Thoughts The Fund's management will continue to emphasize stock selection based upon consistent earnings growth over long periods of time. Our attention will be upon outstanding opportunities for companies and industries with less concern about the overall economic and market environment. The Board of Directors and the management of the Fund have followed a set of investment objectives and principles that have produced consistently positive returns to the shareholders. We are grateful for your investment in our Fund, and we expect to continue to merit your commitment to our shares as we faithfully execute these successful investment strategies. Sincerely yours, Edson L. Bridges II, CFA Chairman Edson L. Bridges III, CFA President ELBII:elc EXHIBIT 1 BRIDGES INVESTMENT FUND, INC. PORTFOLIO TRANSACTIONS DURING THE PERIOD FROM JANUARY 1, 1997, THROUGH MARCH 31, 1997
Bought or Held After Received Transaction $1,000 Par $1,000 Par Securities Value (M) Value (M) Common Stocks Unless or Shares or Shares Described Otherwise (1) Bristol Myers Squibb 3,000 6,000 Capital One Financial 5,000 5,000 (2) Federal Home Loan Mortgage 18,000 24,000 (3) NCR 312 312 (4) Nations Bank Corporation 3,000 6,000 Transaction Systems Architects 2,500 6,500 West Teleservices 2,000 13,000 Various issues of Commercial 36,495M 3,270M Paper Notes Purchased during 1st Qtr., 1997 Sold or Held After Exchanged Transaction Securities $1,000 Par $1,000 Par Common Stocks Unless Value (M) Value (M) Described Otherwise or Shares or Shares First USA 4,000 -- Various issues of Commercial Paper 36,145M -- Notes maturing during 1st Qtr., 1997 (1) - Received 3,000 shares from a 2-for-1 stock split on March 1, 1997 (2) - Received 18,000 shares from a 4-for-1 stock split on January 13, 1997 (3) - Received in a 1-for-16 stock distribution from A T & T (4) - Received 3,000 shares from a 2-for-1 stock split on February 28, 1997
Exhibit 2 BRIDGES INVESTMENT FUND, INC. HISTORICAL FINANCIAL INFORMATION
Net Shares Net Asset Dividend/ Capital Valuation Assets Outstanding Value/Share Share Gains/Share Date 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 - EXHIBIT 2 - HISTORICAL FINANCIAL INFORMATION Valuation Net Shares Net Asset Dividend/ Capital Date Assets Outstanding Value/Share Share Gains/Share 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 - EXHIBIT 2 - HISTORICAL FINANCIAL INFORMATION Valuation Net Shares Net Asset Dividend/ Capital Date Assets Outstanding Value/Share Share Gains/Share 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 - 09-30-96 27,451,784 1,165,788 23.55 .1325 - 12-31-96 29,249,488 1,190,831 24.56 .285 0.25730 03-31-97 30,255,441 1,210,627 24.99 - -
Exhibit 3 BRIDGES INVESTMENT FUND, INC. REPORTS TO STOCKHOLDERS OF MANAGEMENT COMPANIES In Accordance With Rule 30d-1(b) of the General Rules and Regulations Promulgated Under The Investment Company Act of 1940 as Amended "If any matter was submitted during the period covered by the shareholder report to a vote of the shareholders, through the solicitation of proxies or otherwise, furnish the following information:" (1) Annual Meeting held on February 18, 1997, at 11:00 a.m. (2) Election of Directors for one year terms (All Directors Stand for Annual Election):
- - - - - -Votes Cast - - - - - - Withhold For All Authority Names of Directors Nominees To Vote For Elected at Meeting Except All Nominees For Frederick N. Backer 1,057,757 None None Edson L. Bridges II 1,057,757 None None Edson L. Bridges III 1,057,757 None None N. P. Dodge, Jr. 1,057,757 None None John W. Estabrook 1,057,757 None None Jon D. Hoffmaster 1,057,757 None None John J. Koraleski 1,057,757 None None Roger D. Kupka 1,057,757 None None Gary L. Petersen 1,057,757 None None Roy A. Smith 1,057,757 None None L.B. Thomas 1,057,757 None None
(3) A brief description for each matter voted upon at the meeting:
Matters Voted Upon For Against Abstain (a) For a proposed investment 1,057,392 None 365 advisory contract which continues the employment of Bridges Investment Counsel, Inc. as investment adviser to the Fund for the period from April 17, 1997 through April 17, 1998 (b) For the ratification of the 1,046,483 None 11,274 selection of Arthur Andersen LLP as independent auditors of the Fund for the Fiscal Year ending December 31, 1997
F-1 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 1997 (Unaudited)
Number Market of Shares Value Title of Security COMMON STOCKS - (73.4%) Aircraft - Manufacturing - 2.0% The Boeing Co. 6,000 $ 591,750 Amusements - Recreation - Sporting Goods 0.8% NIKE, Inc. 4,000 $ 247,500 Banking and Finance - 5.6% First National of Nebraska, Inc. 230 $ 793,500 NationsBank Corporation 6,000 333,000 Norwest Corporation 6,000 277,500 State Street Boston Corp. 4,000 277,500 ----------- $ 1,681,500 ----------- Beverages - Soft Drinks - 2.6% PepsiCo, Inc. 24,000 $ 777,000 Building Materials - Forest Products - 0.7% Georgia Pacific Corp. 3,000 $ 217,500 Chemicals - 7.2% The Dow Chemical Company 7,000 $ 559,125 Du Pont (E.I.) De Nemours & Company 4,000 424,000 Eastman Kodak Company 7,000 532,000 Monsanto Company 12,000 459,000 Morton International, Inc. 5,000 211,250 ----------- $ 2,185,375 ----------- Computers - Hardware and Software - 6.9% Cisco Systems, Inc.* 2,000 $ 96,250 Electronic Data Systems Corp. 4,223 169,448 HNC Software, Inc.* 2,000 52,250 Hewlett-Packard Co. 12,000 640,500 International Business Machines Corporation 1,000 137,250 Microsoft Corporation* 8,000 733,504 NCR Corporation* 312 10,959 Sun Microsystems, Inc.* 2,000 57,750 Transaction System Architects* 6,500 178,750 ----------- $ 2,076,661 ----------- Commercial Services - 0.1% MemberWorks, Inc.* 2,000 $ 32,500 * Nonincome-producing security F-2 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 1997 (Unaudited) Number Market of Shares Value Title of Security COMMON STOCKS (Continued) Drugs - Medicines - Cosmetics - 7.8% Abbott Laboratories 8,000 $ 449,000 Amgen, Inc.* 1,000 55,875 Bristol-Myers Squibb Co. 6,000 354,000 Elan Corporation PLC ADR* 4,000 136,500 Johnson & Johnson 10,000 528,750 Merck & Co., Inc. 10,000 842,500 ----------- $ 2,366,625 ----------- Electrical Equipment and Supplies - 2.0% General Electric Co. 6,000 $ 595,500 Electronics - 3.4% Intel Corporation 4,000 $ 556,500 Motorola, Inc. 8,000 484,000 ----------- $ 1,040,500 ----------- Finance - Real Estate - 2.2% Federal Home Loan Mortgage Corporation 24,000 $ 654,000 Finance - Services - 0.6% Capital One Financial Corporation 5,000 $ 186,250 Food - Miscellaneous Products - 3.8% Philip Morris Companies, Inc. 10,000 $ 1,141,250 Forest Products & Paper - 1.0% Kimberly-Clark Corporation 3,000 $ 298,500 Insurance - Multiline - 1.4% American International Group, Inc. 1,000 $ 117,375 General Re Corp. 2,000 316,000 ----------- $ 433,375 ----------- Insurance - Municipal Bond - 1.0% MBIA, Inc. 3,000 $ 287,625 * Nonincome-producing security F-3 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 1997 (Unaudited) Number Market of Shares Value Title of Security COMMON STOCKS (Continued) Lumber and Wood Products - 0.7% Weyerhaeuser Company 5,000 $ 223,125 Machinery - Construction & Mining - 0.8% Caterpillar, Inc. 3,000 $ 240,750 Metal Products - Miscellaneous - 0.8% Nucor Corporation 5,500 $ 251,625 Motion Pictures and Theatres - 1.7% Walt Disney Co. 7,000 $ 510,125 Petroleum Producing - 7.2% Amoco Corporation 5,000 $ 433,125 Atlantic Richfield Company 2,000 270,000 Chevron Corporation 10,000 696,250 Exxon Corporation 4,000 431,000 Mobil Corporation 2,000 261,250 Union Pacific Resources Group 3,387 90,602 ----------- $ 2,182,227 ----------- Printing and Engraving - 0.5% Deluxe Corp. 5,000 $ 161,250 Publishing - Newspapers - 1.1% Gannett Co., Inc. 4,000 $ 343,500 Publishing - Electronic - 1.2% Reuters Holdings PLC 6,000 $ 349,128 Restaurants - Food Service - 0.2% Apple South, Inc. 3,500 $ 45,937 Retail Stores - Apparel and Clothing - 1.5% Gap, Inc. 14,000 $ 469,000 Retail Stores - Building Materials and Home Improvement - 0.5% Home Depot, Inc. 3,000 $ 160,500 * Nonincome-producing security F-4 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 1997 (Unaudited) Number Market of Shares Value Title of Security COMMON STOCKS (Continued) Retail Stores - Department - 1.4% Dayton Hudson Corporation 10,500 $ 438,375 Retail Stores - Variety - 0.7% Albertson's Inc. 6,500 $ 221,000 Telecommunications - 4.2% A T & T Corp. 5,000 $ 176,250 GTE Corporation 10,000 466,250 Lucent Technologies, Inc. 1,620 85,050 Sprint Corporation 8,000 363,000 West Teleservices Corporation* 13,000 167,375 ----------- $ 1,257,925 ----------- Transportation - Railroads - 0.8% Union Pacific Corporation 4,000 $ 227,000 Utilities - Telecommunications - 0.4% U S West Communications Group 4,000 $ 135,500 Waste Management - 0.6% WMX Technologies, Inc. 5,500 $ 168,438 TOTAL COMMON STOCKS (Cost - $11,607,493) $22,198,816 PREFERRED STOCKS (0.4%) Telecommunications - (0.4%) AirTouch Communications, Inc. 4.25% Series C 3,000 $ 131,250 Convertible Preferred Total Preferred Stocks (Cost - $137,925) $ 131,250 Total Stocks (Cost - $11,745,418) $22,330,066 *Nonincome-producing security F-5 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 1997 (Unaudited) Principal Market Amount Value Title of Security DEBT SECURITIES (25.4%) Broadcast - Radio and Television (0.1%)- Comcast Corporation 3.375% Step-Up Convertible Subordinated Debentures due September 9, 2005 $ 50,000 $ 46,688 Food - Miscellaneous Products (0.3%) - Super Valu Stores, Inc. 8.875% Promissory Notes, due June 15, 1999 $100,000 $ 103,563 U.S. Government (11.2%) - U.S. Treasury, 8.875% Notes, due November 15, 1997 200,000 203,500 U.S. Treasury, 9.000% Notes, due May 15, 1998 200,000 206,000 U.S. Treasury, 9.125% Notes, due May 15, 1999 200,000 210,312 U.S. Treasury, 8.750% Notes, due August 15, 2000 200,000 212,438 U.S. Treasury, 8.000% Notes, due May 15, 2001 200,000 209,000 U.S. Treasury, 7.500% Notes, due May 15, 2002 200,000 206,187 U.S. Treasury, 10.750% Bonds due February 15, 2003 200,000 237,188 U.S. Treasury, 7.250% Notes, due May 15, 2004 300,000 305,906 U.S. Treasury, 7.50% Notes, due February 15, 2005 300,000 310,219 U.S. Treasury, 9.375% Bonds, due February 15, 2006 200,000 231,875 F-6 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 1997 (Unaudited) Principal Market Amount Value Title of Security DEBT SECURITIES (Continued) U.S. Government - (Continued) U.S. Treasury, 7.625% Bonds, due February 15, 2007 300,000 307,781 U.S. Treasury, 8.75% Bonds, due November 15, 2008 200,000 217,938 U.S. Treasury, 9.125% Bonds, due May 15, 2009 200,000 223,000 U.S. Treasury, 7.500% Bonds, due November 15, 2016 300,000 308,437 ----------- $ 3,389,781 ----------- Household Appliances and Utensils (0.4%) - Maytag Corp., 9.75% Notes, due May 15, 2002 $100,000 $ 110,569 Office Equipment and Supplies (0.4%) - Xerox Corporation, 9.750% Notes, due March 15, 2000 $100,000 $ 107,414 Retail Stores - Broad Line Chains (0.5%) - Costco Wholesale Corporation 5.750% Convertible Subordinated Debentures, due May 15, 2002 $150,000 $ 145,312 Retail Stores - Department (0.9%) - Dillard Department Stores, Inc. 7.850% Debentures, due October 1, 2012 $150,000 $ 152,519 Sears Roebuck & Co. 9.375% Debentures, due November 1, 2011 100,000 114,712 ----------- $ 267,231 ----------- Textiles - Miscellaneous (0.3%) - Guilford Mills, Inc. 6.000% Convertible Subordinated Debentures due September 15, 2012 $100,000 $ 106,000 F-7 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 1997 (Unaudited) Principal Market Amount Value Title of Security DEBT SECURITIES (Continued) Transportation - Railroads (0.5%) - Union Pacific Corporation 6.00% Notes, due September 1, 2003 $ 150,000 $ 138,724 Commercial Paper - Short Term (10.8%) - American Express Credit Corp. Commercial Paper Note 5.55% due April 1, 1997 $1,540,000 $ 1,540,000 Ford Motor Credit Corp. Commercial Paper Note 5.5% due April 1, 1997 $1,540,000 $ 1,540,000 Prudential Funding Corp. Commercial Paper Note 5.4% due April 1, 1997 $ 190,000 $ 190,000 ----------- $ 3,270,000 ----------- TOTAL DEBT SECURITIES (Cost - $7,702,768) $ 7,685,282 TOTAL INVESTMENTS IN SECURITIES (Cost - $19,448,186) (99.2%) $30,015,348 CASH AND RECEIVABLES LESS TOTAL LIABILITIES (0.8%) 240,093 ----------- NET ASSETS, March 31, 1997 (100.0%) $30,255,441 =========== The accompanying notes to financial statements are an integral part of this schedule.
F-9 BRIDGES INVESTMENT FUND, INC. STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1997 (Unaudited)
AMOUNT AMOUNT INVESTMENT INCOME Interest $120,095 Dividends 108,948 -------- Total Investment Income $229,043 EXPENSES Management fees $ 38,327 Custodian fees 10,007 Professional services 2,725 Insurance 2,349 Bookkeeping services 3,609 Printing and supplies 4,413 Dividend disbursing and transfer agent fees 3,004 Computer programming 1,125 Taxes and licenses 266 ------- Total Expenses $ 65,825 --------- NET INVESTMENT INCOME $ 163,218 --------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS, NET Net realized gain on transactions in investment securities $ 107,499 Net increase in unrealized appreciation of investments 227,369 -------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS $ 334,868 ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 498,086 ========== 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 YEAR ENDED MARCH 31, 1997 AND 1996 (Unaudited)
1997 1996 INCREASE IN NET ASSETS Operations - Net investment income $ 163,218 $ 153,898 Net realized gain/(loss) on transactions in investment securities 107,499 (22,002) Net increase in unrealized appreciation of investments 227,369 1,143,789 ----------- ---------- Net increase in net assets resulting from operations $ 498,086 $1,275,685 Net equalization credits 1,252 1,192 Distributions to shareholders from - Net investment income - - Net realized gain from investment transactions - - Equalization - - Net capital share transactions 506,615 695,681 ----------- ---------- Total Increase in Net Assets $ 1,005,953 $1,972,558 NET ASSETS: Beginning of year 29,249,488 24,052,746 ---------- ---------- End of year (including accumulated undistributed net investment income of $169,202 and $159,289 respectively) $30,255,441 $26,025,304 =========== =========== The accompanying notes to financial statements are an integral part of these statements.
F-11 BRIDGES INVESTMENT FUND, INC. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (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.
1997 1996 Net Change Net unrealized appreciation (depreciation): Aggregate gross unrealized appreciation on securities $10,868,820 $8,172,188 Aggregate gross unrealized depreciation on securities (301,658) (191,551) Net $10,567,162 $7,980,637 $2,586,525
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. The gain computed on the basis of average cost would have been substantially the same as that reflected in the accompanying statement of operations. 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. E. 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. (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 years ended March 31, was:
1997 1996 United States government obligations $ - $ 493,695 Other Securities 310,716 806,978 Total Cost $ 310,716 $1,300,673
Net proceeds from sales of long-term investments during the years ended March 31, were:
1997 1996 United States government obligations $ - $ 223,527 Other Securities 211,481 446,090 Total Net Proceeds $ 211,481 $ 669,617 Total Cost Basis of Securities Sold $ 103,982 $ 691,619
(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:
1997 1996 Shares sold 36,077 35,667 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 5,782 6,680 41,859 42,347 Shares redeemed 22,063 10,538 Net increase 19,796 31,809
Value of capital stock issued and redeemed is as follows:
1997 1996 Shares sold $ 918,980 $ 786,721 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 147,024 144,137 $1,066,004 $ 930,858 Shares redeemed 559,389 235,177 Net increase $ 506,615 $ 695,681
(7) DISTRIBUTION TO SHAREHOLDERS ---------------------------- On April 11, 1997 a distribution of $.1325 per share aggregating $160,379.48 was declared to shareholders of record on April 11, 1997, to be payable on April 25, 1997. (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. -----END PRIVACY-ENHANCED MESSAGE-----