Page 1
|
Shareholder Letter
|
|
Exhibit 1
|
Portfolio Transactions During the Period From January 1, 2011
|
|
Pages 2 – 3
|
through June 30, 2011
|
|
Exhibit 2
|
Selected Historical Financial Information
|
|
Pages 4 – 5
|
||
Page 6
|
Expense Example
|
|
Page 7
|
Allocation of Portfolio Holdings
|
|
Pages 8 – 20
|
Financial Statements
|
|
Pages 21 – 24
|
Additional Disclosures
|
Sincerely,
|
|
![]() |
|
Edson L. Bridges III, CFA
|
|
President and Chief Executive Officer
|
Bought or
|
Held After
|
|||||||||
Securities
|
Received
|
Transactions
|
||||||||
Common Stock Unless
|
$1,000 Par
|
$1,000 Par
|
||||||||
Described Otherwise
|
Value (M)
|
Value (M)
|
||||||||
or Shares
|
or Shares
|
|||||||||
Aflac, Inc.
|
2,000 | 10,000 | ||||||||
Amazon.com, Inc.
|
1,000 | 4,000 | ||||||||
Anadarko Petroleum Corporation
|
4,000 | 24,000 | ||||||||
Autodesk, Inc.
|
15,000 | 15,000 | ||||||||
Bank of America Corporation
|
15,000 | 50,000 | ||||||||
Chesapeake Energy Corporation
|
5,000 | 60,000 | ||||||||
Chevron Corporation
|
3,000 | 23,000 | ||||||||
Chicago Bridge & Iron Company
|
10,000 | 20,000 | ||||||||
Cognizant Technology Solutions Corporation
|
7,000 | 7,000 | ||||||||
Credicorp Limited
|
1,000 | 8,000 | ||||||||
EMC Corporation
|
30,000 | 30,000 | ||||||||
1 |
Eaton Corporation
|
17,000 | 17,000 | |||||||
General Electric Company
|
10,000 | 55,000 | ||||||||
iShares S&P MidCap 400 Index Fund
|
11,000 | 21,000 | ||||||||
iShares S&P SmallCap 600 Index Fund
|
12,000 | 22,000 | ||||||||
Perrigo Company
|
12,000 | 12,000 | ||||||||
Praxair, Inc.
|
8,000 | 8,000 | ||||||||
Priceline.com, Incorporated
|
1,500 | 1,500 | ||||||||
Schlumberger Limited
|
10,000 | 10,000 | ||||||||
Stanley Black & Decker Inc.
|
5,000 | 5,000 |
Sold or
|
Held After
|
|||||||||
Securities
|
Exchanged
|
Transactions
|
||||||||
Common Stock Unless
|
$1,000 Par
|
$1,000 Par
|
||||||||
Described Otherwise
|
Value (M)
|
Value (M)
|
||||||||
or Shares
|
or Shares
|
|||||||||
Abbott Laboratories
|
20,000 | — | ||||||||
Allergan, Inc.
|
2,000 | 15,000 | ||||||||
Altria Group, Inc.
|
30,000 | 25,000 | ||||||||
American Capital Ltd.
|
40,000 | — | ||||||||
Best Buy Co., Inc.
|
25,000 | 25,000 | ||||||||
Capital One Financial Corporation
|
5,000 | 45,000 | ||||||||
2 |
Cardinal Health, Inc.
|
250,000 | — | |||||||
6.75% due 2/15/2011
|
||||||||||
Cisco Systems, Inc.
|
20,000 | 30,000 | ||||||||
CME Group Inc.
|
500 | 2,500 | ||||||||
Credicorp Limited
|
1,000 | 7,000 | ||||||||
Dolby Laboratories Inc.
|
11,000 | — | ||||||||
Express Scripts, Inc.
|
8,000 | 42,000 | ||||||||
Hewlett-Packard Company
|
20,000 | — | ||||||||
Mastercard, Inc.
|
1,000 | 12,000 | ||||||||
McDonald’s Corporation
|
2,000 | 15,000 | ||||||||
Microsoft Corporation
|
25,000 | — | ||||||||
PepsiCo, Inc.
|
10,000 | 15,000 | ||||||||
Procter & Gamble Company (The)
|
10,000 | — | ||||||||
Research In Motion Limited
|
10,000 | — | ||||||||
Roper Industries, Inc.
|
3,000 | 15,000 | ||||||||
Stryker Corporation
|
13,500 | — | ||||||||
Transocean Ltd.
|
10,000 | — | ||||||||
Visa Inc.
|
3,000 | 17,000 | ||||||||
Waters Corporation
|
1,000 | 9,000 |
Valuation
|
Net
|
Shares
|
Net Asset
|
Dividend/
|
Capital
|
||||||||||||||||||
Date
|
Assets
|
Outstanding
|
Value/Share
|
Share
|
Gains/Share
|
||||||||||||||||||
07-01-63 | $ | 109,000 | 10,900 | $ | 10.00 | $ | — | $ | — | ||||||||||||||
12-31-63 | 159,187 | 15,510 | 10.13 | .07 | — | ||||||||||||||||||
12-31-64 | 369,149 | 33,643 | 10.97 | .28 | — | ||||||||||||||||||
12-31-65 | 621,241 | 51,607 | 12.04 | .285 | . | 028 | |||||||||||||||||
12-31-66 | 651,282 | 59,365 | 10.97 | .295 | — | ||||||||||||||||||
12-31-67 | 850,119 | 64,427 | 13.20 | .295 | — | ||||||||||||||||||
12-31-68 | 1,103,734 | 74,502 | 14.81 | .315 | — | ||||||||||||||||||
12-31-69 | 1,085,186 | 84,807 | 12.80 | .36 | — | ||||||||||||||||||
12-31-70 | 1,054,162 | 90,941 | 11.59 | .37 | — | ||||||||||||||||||
12-31-71 | 1,236,601 | 93,285 | 13.26 | .37 | — | ||||||||||||||||||
12-31-72 | 1,272,570 | 93,673 | 13.59 | .35 | . | 08 | |||||||||||||||||
12-31-73 | 1,025,521 | 100,282 | 10.23 | .34 | . | 07 | |||||||||||||||||
12-31-74 | 757,545 | 106,909 | 7.09 | .35 | — | ||||||||||||||||||
12-31-75 | 1,056,439 | 111,619 | 9.46 | .35 | — | ||||||||||||||||||
12-31-76 | 1,402,661 | 124,264 | 11.29 | .38 | — | ||||||||||||||||||
12-31-77 | 1,505,147 | 145,252 | 10.36 | .428 | . | 862 | |||||||||||||||||
12-31-78 | 1,574,097 | 153,728 | 10.24 | .481 | . | 049 | |||||||||||||||||
12-31-79 | 1,872,059 | 165,806 | 11.29 | .474 | . | 051 | |||||||||||||||||
12-31-80 | 2,416,997 | 177,025 | 13.65 | .55 | . | 0525 | |||||||||||||||||
12-31-81 | 2,315,441 | 185,009 | 12.52 | .63 | . | 0868 | |||||||||||||||||
12-31-82 | 2,593,411 | 195,469 | 13.27 | .78 | . | 19123 | |||||||||||||||||
12-31-83 | 3,345,988 | 229,238 | 14.60 | .85 | . | 25 | |||||||||||||||||
12-31-84 | 3,727,899 | 278,241 | 13.40 | .80 | . | 50 | |||||||||||||||||
12-31-85 | 4,962,325 | 318,589 | 15.58 | .70 | . | 68 | |||||||||||||||||
12-31-86 | 6,701,786 | 407,265 | 16.46 | .688 | . | 86227 | |||||||||||||||||
12-31-87 | 7,876,275 | 525,238 | 15.00 | .656 | 1. | 03960 | |||||||||||||||||
12-31-88 | 8,592,807 | 610,504 | 14.07 | .85 | 1. | 10967 | |||||||||||||||||
12-31-89 | 10,895,182 | 682,321 | 15.97 | .67 | . | 53769 | |||||||||||||||||
12-31-90 | 11,283,448 | 744,734 | 15.15 | .67 | . | 40297 | |||||||||||||||||
12-31-91 | 14,374,679 | 831,027 | 17.30 | .66 | . | 29292 | |||||||||||||||||
12-31-92 | 17,006,789 | 971,502 | 17.51 | .635 | . | 15944 | |||||||||||||||||
12-31-93 | 17,990,556 | 1,010,692 | 17.80 | .6225 | . | 17075 | |||||||||||||||||
12-31-94 | 18,096,297 | 1,058,427 | 17.10 | .59 | . | 17874 | |||||||||||||||||
12-31-95 | 24,052,746 | 1,116,620 | 21.54 | .575 | . | 19289 | |||||||||||||||||
12-31-96 | 29,249,488 | 1,190,831 | 24.56 | .55 | . | 25730 | |||||||||||||||||
12-31-97 | 36,647,535 | 1,262,818 | 29.02 | .5075 | . | 30571 | |||||||||||||||||
12-31-98 | 48,433,113 | 1,413,731 | 34.26 | .44 | 2. | 11648 | |||||||||||||||||
12-31-99 | 69,735,684 | 1,508,154 | 46.24 | .30 | . | 91088 | |||||||||||||||||
12-31-00 | 71,411,520 | 1,850,301 | 38.59 | .40 | . | 80880716 | |||||||||||||||||
12-31-01 | 60,244,912 | 1,940,494 | 31.05 | .26 | — | ||||||||||||||||||
12-31-02 | 45,854,541 | 1,989,769 | 23.05 | .20 | — | ||||||||||||||||||
12-31-03 | 62,586,435 | 2,016,560 | 31.04 | .24 | — | ||||||||||||||||||
12-31-04 | 74,281,648 | 2,230,038 | 33.31 | .305 | — | ||||||||||||||||||
12-31-05 | 80,715,484 | 2,305,765 | 35.01 | .2798 | — | ||||||||||||||||||
12-31-06 | 82,754,479 | 2,336,366 | 35.42 | .2695 | — | ||||||||||||||||||
12-31-07 | 77,416,617 | 2,258,380 | 34.28 | .2364 | 2. | 5735 | |||||||||||||||||
12-31-08 | 49,448,417 | 2,257,410 | 21.91 | .2603 | — | ||||||||||||||||||
12-31-09 | 67,435,343 | 2,303,377 | 29.28 | .17 | — | ||||||||||||||||||
12-31-10 | 75,014,486 | 2,307,301 | 32.51 | .126 | — |
Valuation
|
Net
|
Shares
|
Net Asset
|
Dividend/
|
Capital
|
||||||||||||||||||
Date
|
Assets
|
Outstanding
|
Value/Share
|
Share
|
Gains/Share
|
||||||||||||||||||
06-30-10 | $ | 61,747,862 | 2,299,232 | $ | 26.86 | $ | .05 | $ | — | ||||||||||||||
06-30-11 | 77,853,396 | 2,310,574 | 33.69 | .06 | — |
Expenses Paid
|
|||
Beginning
|
Ending
|
During Period*
|
|
Account Value
|
Account Value
|
January 1, 2011 –
|
|
January 1, 2011
|
June 30, 2011
|
June 30, 2011
|
|
Actual
|
$1,000.00
|
$1,038.10
|
$4.42
|
Hypothetical (5% return before expenses)
|
1,000.00
|
1,020.46
|
4.38
|
*
|
Expenses are equal to the Fund’s annualized expense ratio of 0.87%, multiplied by the average account value over the period, multiplied by 181/365 to reflect the one-half year period.
|
Common Stock
|
$ | 70,373,375 | |||
Corporate Bonds
|
2,266,496 | ||||
Exchange Traded Funds
|
3,664,740 | ||||
Short-Term Investments
|
1,716,948 | ||||
Total
|
$ | 78,021,559 |
Title of Security
|
Shares
|
Cost
|
Value
|
|||||||||
COMMON STOCKS – 90.39%
|
||||||||||||
Amusement, Gambling, and Recreation Industries – 0.50%
|
||||||||||||
The Walt Disney Co.
|
10,000 | $ | 336,300 | $ | 390,400 | |||||||
Beverage and Tobacco Product Manufacturing – 3.92%
|
||||||||||||
Altria Group, Inc.
|
25,000 | $ | 478,400 | $ | 660,250 | |||||||
PepsiCo, Inc.
|
15,000 | 657,954 | 1,056,450 | |||||||||
Philip Morris International, Inc.
|
20,000 | 685,363 | 1,335,400 | |||||||||
$ | 1,821,717 | $ | 3,052,100 | |||||||||
Chemical Manufacturing – 5.80%
|
||||||||||||
Allergan, Inc.
|
15,000 | $ | 593,458 | $ | 1,248,750 | |||||||
Perrigo Co.
|
12,000 | 891,115 | 1,054,440 | |||||||||
Praxair, Inc.
|
8,000 | 758,391 | 867,120 | |||||||||
Teva Pharmaceutical Industries, Ltd. – ADR
|
28,000 | 911,242 | 1,350,160 | |||||||||
$ | 3,154,206 | $ | 4,520,470 | |||||||||
Computer and Electronic Product Manufacturing – 10.87%
|
||||||||||||
Apple, Inc. (a)
|
12,000 | $ | 1,380,553 | $ | 4,028,040 | |||||||
Cisco Systems, Inc.
|
30,000 | 735,598 | 468,300 | |||||||||
EMC Corp. (a)
|
30,000 | 776,088 | 826,500 | |||||||||
QUALCOMM, Inc.
|
40,000 | 1,541,688 | 2,271,600 | |||||||||
Waters Corp. (a)
|
9,000 | 472,047 | 861,660 | |||||||||
$ | 4,905,974 | $ | 8,456,100 | |||||||||
Couriers and Messengers – 2.16%
|
||||||||||||
FedEx Corp.
|
10,000 | $ | 688,396 | $ | 948,500 | |||||||
United Parcel Service, Inc.
|
10,000 | 671,348 | 729,300 | |||||||||
$ | 1,359,744 | $ | 1,677,800 | |||||||||
Credit Intermediation and Related Activities – 10.04%
|
||||||||||||
Bank Of America Corporation
|
50,000 | $ | 780,750 | $ | 548,000 | |||||||
Capital One Financial Corp.
|
45,000 | 1,362,267 | 2,325,150 | |||||||||
Credicorp Ltd.
|
7,000 | 647,997 | 602,700 | |||||||||
JPMorgan Chase & Co.
|
30,000 | 1,320,491 | 1,228,200 | |||||||||
Visa, Inc.
|
17,000 | 1,256,513 | 1,432,420 | |||||||||
Wells Fargo & Co.
|
60,000 | 1,444,347 | 1,683,600 | |||||||||
$ | 6,812,365 | $ | 7,820,070 | |||||||||
Data Processing, Hosting and Related Services – 1.10%
|
||||||||||||
Rackspace Hosting, Inc. (a)
|
20,000 | $ | 478,448 | $ | 854,800 | |||||||
Electrical Equipment, Appliance, and Component Manufacturing – 1.08%
|
||||||||||||
Emerson Electric Co.
|
15,000 | $ | 820,875 | $ | 843,750 | |||||||
Electronics and Appliance Stores – 1.01%
|
||||||||||||
Best Buy Co., Inc.
|
25,000 | $ | 829,496 | $ | 785,250 |
Title of Security
|
Shares
|
Cost
|
Value
|
|||||||||
COMMON STOCKS (Continued)
|
||||||||||||
Food Services and Drinking Places – 1.62%
|
||||||||||||
McDonald’s Corp.
|
15,000 | $ | 974,095 | $ | 1,264,800 | |||||||
General Merchandise Stores – 1.21%
|
||||||||||||
Target Corp.
|
20,000 | $ | 614,615 | $ | 938,200 | |||||||
Health and Personal Care Stores – 2.91%
|
||||||||||||
Express Scripts, Inc. (a)
|
42,000 | $ | 850,874 | $ | 2,267,160 | |||||||
Heavy and Civil Engineering Construction – 2.25%
|
||||||||||||
Chicago Bridge & Iron Co. – ADR
|
20,000 | $ | 667,122 | $ | 778,000 | |||||||
Fluor Corp.
|
15,000 | 579,555 | 969,900 | |||||||||
$ | 1,246,677 | $ | 1,747,900 | |||||||||
Insurance Carriers and Related Activities – 2.59%
|
||||||||||||
Aflac, Inc.
|
10,000 | $ | 569,975 | $ | 466,800 | |||||||
Berkshire Hathaway, Inc. (a)
|
20,000 | 678,649 | 1,547,800 | |||||||||
$ | 1,248,624 | $ | 2,014,600 | |||||||||
Leather and Allied Product Manufacturing – 0.58%
|
||||||||||||
NIKE, Inc.
|
5,000 | $ | 424,432 | $ | 449,900 | |||||||
Machinery Manufacturing – 6.13%
|
||||||||||||
Caterpillar, Inc.
|
20,000 | $ | 1,131,201 | $ | 2,129,200 | |||||||
General Electric Co.
|
55,000 | 697,938 | 1,037,300 | |||||||||
Roper Industries, Inc.
|
15,000 | 714,293 | 1,249,500 | |||||||||
Stanley Black & Decker, Inc.
|
5,000 | 360,606 | 360,250 | |||||||||
$ | 2,904,038 | $ | 4,776,250 | |||||||||
Management of Companies and Enterprises – 1.11%
|
||||||||||||
The Goldman Sachs Group, Inc.
|
6,500 | $ | 908,626 | $ | 865,085 | |||||||
Mining (except Oil and Gas) – 1.82%
|
||||||||||||
BHP Billiton Ltd. – ADR
|
15,000 | $ | 1,122,662 | $ | 1,419,450 | |||||||
Nonstore Retailers – 1.05%
|
||||||||||||
Amazon.com, Inc. (a)
|
4,000 | $ | 583,033 | $ | 817,960 | |||||||
Oil and Gas Extraction – 7.83%
|
||||||||||||
Anadarko Petroleum Corp.
|
24,000 | $ | 1,598,009 | $ | 1,842,240 | |||||||
Apache Corp.
|
20,000 | 1,502,797 | 2,467,800 | |||||||||
Chesapeake Energy Corp.
|
60,000 | 1,649,240 | 1,781,400 | |||||||||
$ | 4,750,046 | $ | 6,091,440 | |||||||||
Other Information Services – 3.25%
|
||||||||||||
Google, Inc. (a)
|
5,000 | $ | 2,233,768 | $ | 2,531,900 | |||||||
Petroleum and Coal Products Manufacturing – 3.04%
|
||||||||||||
Chevron Corp.
|
23,000 | $ | 1,061,445 | $ | 2,365,320 |
Title of Security
|
Shares
|
Cost
|
Value
|
|||||||||
COMMON STOCKS (Continued)
|
||||||||||||
Professional, Scientific, and Technical Services – 7.45%
|
||||||||||||
Celgene Corp. (a)
|
15,000 | $ | 839,322 | $ | 904,800 | |||||||
Cognizant Technology Solutions Class A (a)
|
7,000 | 526,265 | 513,380 | |||||||||
Mastercard, Inc.
|
12,000 | 2,060,959 | 3,616,080 | |||||||||
priceline.com, Inc. (a)
|
1,500 | 648,071 | 767,895 | |||||||||
$ | 4,074,617 | $ | 5,802,155 | |||||||||
Publishing Industries (except Internet) – 0.74%
|
||||||||||||
Autodesk, Inc. (a)
|
15,000 | $ | 602,959 | $ | 579,000 | |||||||
Rail Transportation – 3.35%
|
||||||||||||
Union Pacific Corp.
|
25,000 | $ | 1,460,063 | $ | 2,610,000 | |||||||
Securities, Commodity Contracts, and Other Financial
|
||||||||||||
Investments and Related Activities – 2.10%
|
||||||||||||
CME Group, Inc.
|
2,500 | $ | 705,185 | $ | 728,975 | |||||||
T. Rowe Price Group, Inc.
|
15,000 | 725,747 | 905,100 | |||||||||
$ | 1,430,932 | $ | 1,634,075 | |||||||||
Support Activities for Mining – 1.11%
|
||||||||||||
Schlumberger Ltd.
|
10,000 | $ | 882,188 | $ | 864,000 | |||||||
Telecommunications – 1.44%
|
||||||||||||
DIRECTV (a)
|
22,000 | $ | 780,297 | $ | 1,118,040 | |||||||
Transportation Equipment Manufacturing – 1.12%
|
||||||||||||
Eaton Corp.
|
17,000 | $ | 923,522 | $ | 874,650 | |||||||
Water Transportation – 1.21%
|
||||||||||||
Carnival Corp.
|
25,000 | $ | 951,168 | $ | 940,750 | |||||||
TOTAL COMMON STOCKS (Cost $50,547,806)
|
$ | 50,547,806 | $ | 70,373,375 | ||||||||
Principal
|
||||||||||||
Amount
|
Cost
|
Value
|
||||||||||
CORPORATE BONDS – 2.91%
|
||||||||||||
Beverage and Tobacco Product Manufacturing – 0.34%
|
||||||||||||
Reynolds American, Inc.
|
||||||||||||
7.250%, 06/01/2012
|
$ | 250,000 | $ | 251,379 | $ | 264,074 | ||||||
Broadcasting (except Internet) – 0.30%
|
||||||||||||
Comcast Corp.
|
||||||||||||
6.500%, 01/15/2017
|
$ | 200,000 | $ | 199,592 | $ | 233,102 | ||||||
Building Material and Garden Equipment and Supplies Dealers – 0.29%
|
||||||||||||
Home Depot, Inc.
|
||||||||||||
5.400%, 03/01/2016
|
$ | 200,000 | $ | 185,919 | $ | 223,483 |
Principal
|
||||||||||||
Title of Security
|
Amount
|
Cost
|
Value
|
|||||||||
CORPORATE BONDS (Continued)
|
||||||||||||
Credit Intermediation and Related Activities – 0.34%
|
||||||||||||
MBNA Corporation
|
||||||||||||
7.500%, 03/15/2012
|
$ | 250,000 | $ | 251,725 | $ | 261,735 | ||||||
Funds, Trusts, and Other Financial Vehicles – 0.39%
|
||||||||||||
Spectra Energy Capital, LLC
|
||||||||||||
8.000%, 10/01/2019
|
$ | 250,000 | $ | 267,579 | $ | 305,816 | ||||||
General Merchandise Stores – 0.49%
|
||||||||||||
JC Penney Corp., Inc.
|
||||||||||||
7.400%, 04/01/2037
|
$ | 400,000 | $ | 400,942 | $ | 389,999 | ||||||
Machinery Manufacturing – 0.39%
|
||||||||||||
Applied Materials, Inc.
|
||||||||||||
7.125%, 10/15/2017
|
$ | 250,000 | $ | 253,479 | $ | 301,627 | ||||||
Oil and Gas Extraction – 0.37%
|
||||||||||||
Anadarko Petroleum Corp.
|
||||||||||||
7.625%, 03/15/2014
|
$ | 250,000 | $ | 242,768 | $ | 286,660 | ||||||
TOTAL CORPORATE BONDS (Cost $2,053,383)
|
$ | 2,053,383 | $ | 2,266,496 | ||||||||
Shares
|
Cost
|
Value
|
||||||||||
EXCHANGE TRADED FUNDS – 4.71%
|
||||||||||||
Funds, Trusts, and Other Financial Vehicles – 4.71%
|
||||||||||||
iShares S&P MidCap 400 Index Fund
|
21,000 | $ | 1,909,405 | $ | 2,051,700 | |||||||
iShares S&P SmallCap 600 Index Fund
|
22,000 | 1,514,738 | 1,613,040 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $3,424,143)
|
$ | 3,424,143 | $ | 3,664,740 | ||||||||
SHORT-TERM INVESTMENT – 2.21%
|
||||||||||||
Mutual Fund – 2.21%
|
||||||||||||
SEI Daily Income Trust Treasury Fund, 0.010%
|
1,716,948 | $ | 1,716,948 | $ | 1,716,948 | |||||||
TOTAL SHORT-TERM INVESTMENT (Cost $1,716,948)
|
$ | 1,716,948 | $ | 1,716,948 | ||||||||
TOTAL INVESTMENTS (Cost $57,742, 280) – 100.22%
|
$ | 78,021,559 | ||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS – (0.22)%
|
(168,163 | ) | ||||||||||
TOTAL NET ASSETS – 100.00%
|
$ | 77,853,396 |
ASSETS:
|
||||
Investments in securities, at fair value (cost: $57,742,280)
|
$ | 78,021,559 | ||
Cash
|
1,000 | |||
Receivables
|
||||
Dividends and interest
|
97,062 | |||
Fund shares issued
|
66 | |||
Prepaid Expenses
|
3,811 | |||
TOTAL ASSETS
|
$ | 78,123,498 | ||
LIABILITIES:
|
||||
Payables
|
||||
Advisory fees
|
$ | 96,078 | ||
Distribution to shareholders
|
8,404 | |||
Fund shares redeemed
|
89,949 | |||
Payable to directors
|
11,674 | |||
Accrued expenses
|
63,997 | |||
TOTAL LIABILITIES:
|
$ | 270,102 | ||
TOTAL NET ASSETS
|
$ | 77,853,396 | ||
NET ASSETS CONSIST OF:
|
||||
Capital stock
|
$ | 57,603,474 | ||
Accumulated undistributed net investment income
|
19,103 | |||
Accumulated undistributed net realized loss on investments
|
(48,460 | ) | ||
Unrealized appreciation on investments
|
20,279,279 | |||
TOTAL NET ASSETS
|
$ | 77,853,396 | ||
SHARES OUTSTANDING (UNLIMITED SHARES OF NO PAR VALUE AUTHORIZED)
|
2,310,574 | |||
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
|
$ | 33.69 |
INVESTMENT INCOME:
|
||||
Dividend income (net of foreign tax withheld of $986)
|
$ | 417,764 | ||
Interest income
|
74,985 | |||
Total investment income
|
$ | 492,749 | ||
EXPENSES:
|
||||
Advisory fees
|
$ | 192,451 | ||
Administration fees
|
43,391 | |||
Dividend disbursing and transfer agent fees
|
23,897 | |||
Fund accounting fees
|
20,759 | |||
Professional Services
|
20,404 | |||
Independent director’s expenses and fees
|
11,674 | |||
Other
|
9,673 | |||
Printing and supplies
|
7,877 | |||
Custody fees
|
6,155 | |||
Total expenses
|
$ | 336,281 | ||
NET INVESTMENT INCOME
|
$ | 156,468 | ||
NET REALIZED AND UNREALIZED GAIN / (LOSS) ON INVESTMENTS
|
||||
Net realized gain on investments
|
1,480,555 | |||
Net change in unrealized appreciation on investments
|
1,234,301 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
|
2,714,856 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$ | 2,871,324 |
2011
|
2010
|
|||||||
OPERATIONS:
|
||||||||
Net investment income
|
$ | 156,468 | $ | 119,016 | ||||
Net realized gain/(loss) on investments
|
1,480,555 | (138,216 | ) | |||||
Net increase/(decrease) in unrealized appreciation on investments
|
1,234,301 | (5,429,534 | ) | |||||
Net increase/(decrease) in net assets resulting from operations
|
$ | 2,871,324 | $ | (5,448,734 | ) | |||
Net equalization of debits/credits:
|
250 | (41 | ) | |||||
Distributions to shareholders:
|
||||||||
From net investment income
|
(138,565 | ) | (115,162 | ) | ||||
Total distributions
|
$ | (138,565 | ) | $ | (115,162 | ) | ||
Capital Share Transactions:
|
||||||||
Net increase in net assets from capital share transactions
|
105,901 | (123,544 | ) | |||||
Total increase in net assets
|
$ | 2,838,910 | $ | (5,687,481 | ) | |||
NET ASSETS:
|
||||||||
Beginning of the period
|
$ | 75,014,486 | $ | 67,435,343 | ||||
End of the period (including undistributed net investment
|
||||||||
income of $19,103 and $4,570, respectively)
|
$ | 77,853,396 | $ | 61,747,862 |
For a Fund share outstanding throughout the period
|
||||||||||||||||||||||||
For the Six
|
||||||||||||||||||||||||
Months Ended
|
||||||||||||||||||||||||
June 30, 2011
|
Years Ended December 31,
|
|||||||||||||||||||||||
(Unaudited)
|
2010
|
2009
|
2008
|
2007
|
2006
|
|||||||||||||||||||
Net asset value, beginning of period
|
$ | 32.51 | $ | 29.28 | $ | 21.91 | $ | 34.28 | $ | 35.42 | $ | 35.01 | ||||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||||||
Net investment income1
|
0.08 | 0.14 | 0.17 | 0.25 | 0.23 | 0.27 | ||||||||||||||||||
Net realized and unrealized gain/(loss) on investments
|
1.16 | 3.22 | 7.37 | (12.36 | ) | 1.44 | 0.41 | |||||||||||||||||
Total from investment operations
|
1.24 | 3.36 | 7.54 | (12.11 | ) | 1.67 | 0.68 | |||||||||||||||||
Less dividends and distributions:
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.06 | ) | (0.13 | ) | (0.17 | ) | (0.25 | ) | (0.24 | ) | (0.27 | ) | ||||||||||||
Distributions from net realized gains
|
— | — | — | — | (2.57 | ) | — | |||||||||||||||||
Distributions from tax return of capital
|
— | — | — | (0.01 | ) | — | — | |||||||||||||||||
Total dividends and distributions
|
(0.06 | ) | (0.13 | ) | (0.17 | ) | (0.26 | ) | (2.81 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period
|
$ | 33.69 | $ | 32.51 | $ | 29.28 | $ | 21.91 | $ | 34.28 | $ | 35.42 | ||||||||||||
Total return
|
3.81 | %2 | 11.50 | % | 34.61 | % | (35.47 | %) | 4.72 | % | 1.96 | % | ||||||||||||
Supplemental data and ratios:
|
||||||||||||||||||||||||
Net assets, end of period (in thousands)
|
$ | 77,853 | $ | 75,014 | $ | 67,435 | $ | 49,448 | $ | 77,417 | $ | 82,754 | ||||||||||||
Ratio of net expenses to average net assets:
|
0.87 | %3 | 0.90 | % | 1.02 | % | 0.77 | % | 0.80 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assets:
|
0.41 | %3 | 0.42 | % | 0.63 | % | 0.86 | % | 0.64 | % | 0.78 | % | ||||||||||||
Portfolio turnover rate
|
13.3 | % | 26.3 | % | 18.2 | % | 23.4 | % | 39.0 | % | 19.0 | % |
1
|
Net investment income per share is calculated using the ending balances prior to consideration or adjustment for permanent book-to-tax differences.
|
2
|
Not annualized.
|
3
|
Annualized.
|
Level 1 –
|
Unadjusted quoted prices in active markets for identical investments
|
|
Level 2 –
|
Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
Level 3 –
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
Equity
|
|||||||||||||||||
Manufacturing
|
$ | 25,381,680 | $ | — | $ | — | $ | 25,381,680 | |||||||||
Finance and Insurance
|
11,468,745 | — | — | 11,468,745 | |||||||||||||
Mining
|
8,374,890 | — | — | 8,374,890 | |||||||||||||
Retail Trade
|
4,808,570 | — | — | 4,808,570 | |||||||||||||
Information
|
5,083,740 | — | — | 5,083,740 | |||||||||||||
Transportation and Warehousing
|
5,228,550 | — | — | 5,228,550 | |||||||||||||
Professional, Scientific
|
|||||||||||||||||
and Technical Services
|
5,759,015 | — | — | 5,759,015 | |||||||||||||
Accommodation and Food Services
|
1,264,800 | — | — | 1,264,800 | |||||||||||||
Management of Companies
|
865,085 | — | — | 865,085 | |||||||||||||
Construction
|
1,747,900 | — | — | 1,747,900 | |||||||||||||
Arts and Entertainment
|
|||||||||||||||||
and Recreation
|
390,400 | — | — | 390,400 | |||||||||||||
Total Equity
|
70,373,375 | — | — | 70,373,375 | |||||||||||||
Exchange Traded Funds
|
|||||||||||||||||
Finance and Insurance
|
3,664,740 | — | — | 3,664,740 | |||||||||||||
Fixed Income
|
|||||||||||||||||
Corporate Bonds
|
— | 2,266,496 | — | 2,266,496 | |||||||||||||
Total Fixed Income
|
— | 2,266,496 | — | 2,266,496 | |||||||||||||
Short-Term Investments
|
1,716,948 | — | — | 1,716,948 | |||||||||||||
Total Investments in Securities
|
$ | 75,755,063 | $ | 2,266,496 | $ | — | $ | 78,021,559 |
2011
|
2010
|
||||||||
Non U.S. government securities
|
$ | 10,236,602 | $ | 9,263,714 |
2011
|
2010
|
||||||||
Non U.S. government securities
|
$ | 10,833,230 | $ | 9,946,650 |
2011
|
2010
|
||||||||
Shares sold
|
41,145 | 72,441 | |||||||
Shares issued to shareholders in reinvestment of net investment income
|
3,584 | 3,554 | |||||||
44,729 | 75,995 | ||||||||
Shares redeemed
|
(41,457 | ) | (80,140 | ) | |||||
Net increase
|
3,272 | (4,145 | ) |
2010
|
2009
|
||||||||
Shares sold
|
$ | 1,382,125 | $ | 2,150,147 | |||||
Shares issued to shareholders in reinvestment of net investment income
|
121,713 | 100,869 | |||||||
$ | 1,503,838 | $ | 2,251,016 | ||||||
Shares redeemed
|
(1,397,937 | ) | (2,374,560 | ) | |||||
Net increase
|
$ | 105,901 | $ | (123,544 | ) |
Ordinary
|
Long-Term
|
||||||||
Income
|
Capital Gain
|
||||||||
12/31/10
|
$ | 290,649 | $ | — | |||||
12/31/09
|
385,351 | — |
Federal tax cost of investments
|
$ | 56,054,775 | |||
Unrealized appreciation
|
$ | 21,263,249 | |||
Unrealized depreciation
|
$ | (2,249,536 | ) | ||
Net unrealized appreciation
|
$ | 19,013,713 |
Net unrealized appreciation
|
$ | 19,013,713 | |||
Undistributed ordinary income
|
$ | 950 | |||
Undistributed long term gains
|
$ | — | |||
Distributable earnings
|
$ | 950 | |||
Other accumulated loss
|
$ | (1,497,750 | ) | ||
Total accumulated capital earnings
|
$ | 17,516,913 |
Name, Age,
|
||
Position with
|
||
Fund and Term
|
||
of Office
|
Principal Occupation(s) and Directorships*
|
|
Nathan Phillips
|
Mr. Dodge is the Executive Vice President of N.P. Dodge Company. He has worked at N.P. Dodge Company
|
|
Dodge III(1) Age: 47
|
since October, 1993. Mr. Dodge is also a principal officer and director of a number of subsidiary and affiliated
|
|
companies in the property management, insurance, and real estate syndication fields. Mr. Dodge became a
|
||
Director
|
Director of Lauritzen Corp. in 2008 and of First State Bank of Loomis in 2003.
|
|
(2010 – present)
|
||
John J. Koraleski
|
Mr. Koraleski was elected Chairman on April 13, 2005. Mr. Koraleski is Executive Vice President-Marketing &
|
|
Age: 60
|
Sales of the Union Pacific Railroad Company headquartered in Omaha, Nebraska. Mr. Koraleski was employed
|
|
by Union Pacific in June, 1972, where he has served in various capacities. He was promoted to his present
|
||
Chairman
|
position in March, 1999. As the Executive Vice President-Marketing & Sales, Mr. Koraleski is responsible for
|
|
(2005 – present)
|
all sales, marketing, and commercial activities for the railroad and its Union Pacific Distribution Services
|
|
subsidiary. He is a member of the Railroad’s Operating Committee. Prior to his current officer position with
|
||
Director
|
the Railroad, Mr. Koraleski was the Railroad’s Chief Financial Officer, Controller of Union Pacific Corporation.
|
|
(1995 – present)
|
In those positions, he was responsible for the Railroad’s Information Technologies and Real Estate Departments. Mr. Koraleski has been designated as the Lead Independent Director of the Fund.
|
|
Adam M. Koslosky
|
Mr. Koslosky is the President and Chief Executive Officer of Magnolia Metal Corporation. Magnolia Metal
|
|
Age: 54
|
Corporation is a bronze bearing manufacturer located in Omaha, Nebraska. Mr. Koslosky commenced his
|
|
career with Magnolia Metal Corporation in 1978. Mr. Koslosky also is a general partner of Mack Investments,
|
||
Director
|
Ltd., a privately held investment company located in Omaha, Nebraska. He has been a Director of Nebraska
|
|
(2007 – present)
|
Methodist Hospital Foundation since 1993. Mr. Koslosky has been determined to be an “audit committee financial expert” within the meaning of the Sarbanes Oxley Act of 2002 and the regulations related thereto by the Fund’s Board of Directors. Mr. Koslosky serves as the Chairman of the Fund’s Audit Committee.
|
Name, Age,
|
||
Position with
|
||
Fund and Term
|
||
of Office
|
Principal Occupation(s) and Directorships*
|
|
Michael C. Meyer
|
Mr. Meyer is currently the Vice President of Asset Management of Tenaska, Inc. Tenaska is a privately held
|
|
Age: 52
|
energy company that develops, constructs, owns and operates large-scale non-utility power plants. Tenaska also
|
|
markets natural gas, electricity and biofuels products and provides associated energy risk management services;
|
||
Director
|
provides management and operation services to private equity partnerships; and engages in natural gas
|
|
(2008 – present)
|
exploration production and associated transportation systems. Prior to his current position, Mr. Meyer was Vice President, International Asset Management with responsibility for managing Tenaska’s international business and has been employed at Tenaska since 1995. In his 30-plus years of financial and operations management experience in the banking and energy industries, Mr. Meyer has held positions with the United States Treasury Department’s Office of the Comptroller of the Currency, the Farm Credit System and the First National Bank of Omaha.
|
|
Gary L. Petersen
|
Mr. Petersen is the retired President of Petersen Manufacturing Co. Inc. of DeWitt, Nebraska. Mr. Petersen
|
|
Age: 68
|
commenced employment with the company in February, 1966. He became President in May, 1979, and retired
|
|
in June, 1986. Petersen Manufacturing Co. Inc. produced a broad line of hand tools for national and worldwide
|
||
Director
|
distribution under the brand names Vise-Grip, Unibit, Prosnip, and Punch Puller. Mr. Petersen serves as
|
|
(1987 – present)
|
Chairman of the Fund’s Administration and Nominating Committee.
|
|
Robert Slezak
|
Mr. Slezak is currently an independent management consultant and has been since November 1999. Prior to
|
|
Age: 53
|
that, Mr. Slezak served as Vice President, Chief Financial Officer and Treasurer of the Ameritrade Holding
|
|
Corporation from January 1989 to November 1999 and as a director from October 1996 to September 2002.
|
||
Director
|
Mr. Slezak currently serves as a member of the board of directors of United Western Bancorp, Inc. and Xanadoo
|
|
(2008 – present)
|
Company, a provider of wireless communication services.
|
Name, Age,
|
||
Position with
|
||
Fund and Term
|
||
of Office
|
Principal Occupation(s) and Directorships*
|
|
Edson L.
|
Mr. Bridges has been a full-time member of the professional staff of Bridges Investment Counsel, Inc. since
|
|
Bridges III, CFA
|
August 1983. Mr. Bridges has been responsible for securities research and the investment management for an
|
|
Age: 53
|
expanding base of discretionary management accounts, including the Fund, for more than ten years. Mr.
|
|
Bridges was elected President of Bridges Investment Fund, Inc. on April 11, 1997, and he assumed the position
|
||
President
|
of Portfolio Manager at the close of business on that date. Mr. Bridges became Chief Executive Officer of the
|
|
(1997 – present)
|
Fund on April 13, 2004. Mr. Bridges has been Executive Vice President of Bridges Investment Counsel, Inc.
|
|
since February, 1993, and he is a Director of that firm. Mr. Bridges is an officer and a Director of Bridges
|
||
Chief Executive
|
Investor Services, Inc. and Provident Trust Company. Since December 2000, Mr. Bridges has been President,
|
|
Officer
|
Chief Executive Officer, and Director of Bridges Investment Management, Inc. Mr. Bridges became a Director
|
|
(2004 – present)
|
of Stratus Fund, Inc., an open-end, regulated investment company located in Lincoln, Nebraska, in October,
|
|
1990 and is Chairman of the Audit Committee of the Stratus Fund.
|
||
Director
|
||
(1991 – present)
|
Name, Age,
|
||
Position with
|
||
Fund and Term
|
||
of Office
|
Principal Occupation(s) and Directorships*
|
|
Robert W.
|
Mr. Bridges is a Director and Senior Equity Analyst at Sterling Capital Management LLC. Sterling Capital
|
|
Bridges, CFA
|
Management LLC, located in Charlotte, North Carolina, is an investment management company founded in
|
|
Age: 45
|
1970. Mr. Bridges commenced his career with Sterling Capital Management, LLC in 1996 and served in a
|
|
variety of capacities including client service, systems integration, and compliance before assuming his current
|
||
Director
|
position in 2000. Mr. Bridges has been a Director of Bridges Investment Counsel, Inc. since December 2006.
|
|
(2007 – present)
|
Prior to joining Sterling, Mr. Bridges served in accounting, research analysis and several other roles for Bridges Investment Counsel, Inc. for six years. Mr. Bridges earned his B.S. in Business from Wake Forest University, and became a CFA charter holder in 2003.
|
|
Additional Officers of the Fund
|
||
Name, Age,
|
||
Position with
|
||
Fund and Term
|
||
of Office
|
Principal Occupation(s) and Directorships*
|
|
Edson L.
|
Mr. Bridges was elected Chairman Emeritus on April 15, 2006. Mr. Bridges had previously served as
|
|
Bridges II, CFA
|
Chairman, Vice-Chairman, Chief Executive Officer, and President of the Fund. Mr. Bridges was replaced by
|
|
Age: 79
|
Edson L. Bridges III as Chief Executive Officer of the Fund on April 13, 2004. In September, 1959, Mr.
|
|
Bridges became associated with the predecessor firm to Bridges Investment Counsel, Inc. and is presently the
|
||
Chairman Emeritus
|
President, Director, and Chief Compliance Officer of Bridges Investment Counsel, Inc. Mr. Bridges is also
|
|
(2006 – present)
|
President and Director of Bridges Investor Services, Inc. Mr. Bridges is President and Director of Provident
|
|
Trust Company, chartered to conduct business on March 11, 1992, and, since December 2000, Director of
|
||
Vice-Chairman
|
Bridges Investment Management, Inc.
|
|
(2005 – 2006)
|
||
Chairman
|
||
(1997 – 2005)
|
||
Chief Executive Officer
|
||
(1997 – 2004)
|
||
Director
|
||
(1963 – 2007)
|
||
Nancy K. Dodge
|
Ms. Dodge has been an employee of Bridges Investment Counsel, Inc. since January, 1980 and Bridges
|
|
Age: 50
|
Investment Management, Inc. since 1994. Her career has progressed through the accounting department of that
|
|
Firm, to her present position as Senior Vice President of Investor Support and Fund Services. Ms. Dodge is the
|
||
Treasurer
|
person primarily responsible for overseeing day to day operations for the Fund, and she is also the key person
|
|
(1986 – present)
|
for handling relations with shareholders, the custodian bank, transfer agent, and the auditor. Ms. Dodge is a
|
|
Senior Vice President of Bridges Investment Management, Inc., a Vice President and Director of Bridges
|
||
Chief Compliance
|
Investor Services, Inc., and a Vice President and Trust Officer for Provident Trust Company. Ms. Dodge was
|
|
Officer
|
appointed Chief Compliance Officer of the Fund, as of November 21, 2006.
|
|
(2006 – present)
|
Name, Age,
|
||
Position with
|
||
Fund and Term
|
||
of Office
|
Principal Occupation(s) and Directorships*
|
|
Brian
|
Mr. Kirkpatrick is a Senior Vice President of Bridges Investment Counsel and has been an employee of Bridges
|
|
Kirkpatrick, CFA
|
Investment Counsel, Inc. since August 24, 1992 and Bridges Investment Management, Inc. since 1994. Mr.
|
|
Age: 39
|
Kirkpatrick has been a full-time member of the professional staff of Bridges Investment Counsel, Inc.,
|
|
responsible for securities research, and the investment management for an expanding base of discretionary
|
||
Executive Vice
|
management accounts, including the Fund, for several years. Mr. Kirkpatrick was appointed Sub Portfolio
|
|
President
|
Manager of the Fund on April 12, 2005. Mr. Kirkpatrick is Senior Vice President, Director of Research and
|
|
(2006 – present)
|
Chief Compliance Officer and a director of Bridges Investment Management, Inc., and a Vice President for Provident Trust Company.
|
|
Vice President
|
||
(2000 – 2006)
|
||
Mary Ann Mason
|
Ms. Mason has been an employee of Bridges Investment Counsel, Inc. since June 1981 and currently is Senior
|
|
Age: 59
|
Vice President, Corporate Secretary and Treasurer of such entity. She is Senior Vice President, Corporate
|
|
Secretary, and Treasurer of Bridges Investment Management, Inc. and the Secretary, Treasurer and Director of
|
||
Secretary
|
Bridges Investor Services, Inc. Ms. Mason also acts as Vice President, Secretary and Treasurer for Provident
|
|
(1987 – present)
|
Trust Company.
|
|
Linda Morris
|
Ms. Morris has been an employee of Bridges Investment Counsel, Inc. since August, 1992 and Bridges
|
|
Age: 44
|
Investment Management, Inc. since 1994. Her career with Bridges Investment Counsel, Inc. has been largely in
|
|
the client accounting area. Ms. Morris was elected Assistant Treasurer of the Fund in April, 1999. Ms. Morris is
|
||
Assistant Treasurer
|
also Associate Director of Accounting for Bridges Investment Counsel, Inc. and a Trust Assistant for Provident
|
|
(1999 – present)
|
Trust Company.
|
|
Trinh Wu
|
Ms. Wu has been an employee of Bridges Investment Counsel, Inc. and Bridges Investment Management, Inc.
|
|
Age: 54
|
since February 1, 1997. Ms. Wu has functioned as the lead accountant for the day to day operation of the Fund.
|
|
Ms. Wu currently is the Senior Accountant of Bridges Investment Counsel, Inc. Prior to employment at Bridges
|
||
Controller
|
Investment Counsel, Inc., Ms. Wu performed operating and accounting activities for 17 years in the Estate and
|
|
(2001 – present)
|
Trust Department of the predecessor institutions to U.S. Bank, N.A. Nebraska. Ms. Wu was elected to the position of Controller of the Fund at the October 16, 2001 meeting of the Board of Directors.
|
Directors
|
||
Edson L. Bridges III
|
||
Robert W. Bridges
|
||
Nathan Phillips Dodge III
|
||
John J. Koraleski
|
||
Adam M. Koslosky
|
||
Michael C. Meyer
|
||
Gary L. Petersen
|
||
Robert Slezak
|
Officers
|
|||
John J. Koraleski
|
Chairman and Lead Independent Director
|
||
Edson L. Bridges II
|
Chairman Emeritus
|
||
Edson L. Bridges III
|
President and Chief Executive and
|
||
Investment Officer
|
|||
Brian M. Kirkpatrick
|
Executive Vice President
|
||
Mary Ann Mason
|
Secretary
|
||
Nancy K. Dodge
|
Treasurer and Chief Compliance Officer
|
||
Linda J. Morris
|
Assistant Treasurer
|
||
Trinh Wu
|
Controller
|
Independent Registered Public Accounting Firm
|
||
Deloitte & Touche LLP
|
||
555 East Wells Street, Suite 1400
|
||
Milwaukee, Wisconsin 53202
|
Corporate Counsel
|
Counsel to Independent Directors
|
||
Baird, Holm, LLP
|
Koley Jessen P.C.
|
||
Attorneys at Law
|
Attorneys at Law
|
||
1500 Woodmen Tower
|
One Pacific Place, Suite 800
|
||
Omaha, Nebraska 68102
|
1125 South 103 Street
|
||
Omaha, Nebraska 68124
|
|||
Special Counsel
|
Distributor
|
||
Ballard, Spahr, Andrews & Ingersoll, LLP
|
Quasar Distributors, LLC
|
||
1225 Seventeenth Street, Suite 2300
|
615 East Michigan Street
|
||
Denver, Colorado 80202
|
Milwaukee, Wisconsin 53202
|
(a)
|
The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
(a)
|
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Incorporated by reference to the Registrant’s Form N-CSR filed March 3, 2008.
|
(b)
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.
|
1.
|
I have reviewed this report on Form N-CSR of Bridges Investment Fund, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 18, 2011
|
/s/ Edson L. Bridges
Edson L. Bridges III
President, Chief Executive Officer, Chief Investment Officer
|
1.
|
I have reviewed this report on Form N-CSR of Bridges Investment Fund, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 18, 2011
|
/s/ Brian M. Kirkpatrick
Brian M. Kirkpatrick
Executive Vice President
|
1.
|
I have reviewed this report on Form N-CSR of Bridges Investment Fund, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 18, 2011
|
/s/ Nancy K. Dodge
Nancy K. Dodge
Treasurer, Chief Compliance Officer
|
/s/ Edson L. Bridges
Edson L. Bridges III
President, CEO, CIO
Bridges Investment Fund, Inc.
|
/s/ Brian M. Kirkpatrick
Brian M. Kirkpatrick
Executive Vice President
Bridges Investment Fund, Inc.
|
Dated: August 18, 2011
|
Dated: August 18, 2011
|
/s/ Nancy K. Dodge
Nancy K. Dodge
Treasurer, CCO
Bridges Investment Fund, Inc.
|
Dated: August 18, 2011
|
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