-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, pFru3UsJA1tjFYScAXU4MVfNJkEpk0aPac6mewyw7Bx1/zD/pEb0shkRxBca9Og9 UVPVndofG9V/gJZEEhzWSg== 0000928385-95-000232.txt : 19950801 0000928385-95-000232.hdr.sgml : 19950801 ACCESSION NUMBER: 0000928385-95-000232 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950531 FILED AS OF DATE: 19950731 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ABT UTILITY INCOME FUND INC CENTRAL INDEX KEY: 0000037618 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 591550401 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02533 FILM NUMBER: 95557632 BUSINESS ADDRESS: STREET 1: 340 ROYAL PALM WAY STREET 2: 3RD FLOOR CITY: PALM BEACH STATE: FL ZIP: 33480 BUSINESS PHONE: 4078321078 MAIL ADDRESS: STREET 1: 340 ROYAL PALM WAY STREET 2: 3RD FLOOR CITY: PALM BEACH STATE: FL ZIP: 33480 FORMER COMPANY: FORMER CONFORMED NAME: ABT UTILITY INCOME FUND INC/FL DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: TAX MANAGED FUND FOR UTILITY SHARES INC DATE OF NAME CHANGE: 19841211 FORMER COMPANY: FORMER CONFORMED NAME: FLORIDA LIQUID ASSESTS CO DATE OF NAME CHANGE: 19780228 N-30D 1 FORM N-30D ABT UTILITY INCOME FUND, INC. Schedule of Investments (Unaudited) May 31, 1995 - --------------------------------------------------------------------------------
Shares Value ----------- ------------- COMMON STOCKS -- 95.6% Oil - Integrated 20,000 Atlantic Richfield Co. $ 2,322,500 4.2% 40,000 Chevron Corp. 1,965,000 ------------- 4,287,500 ------------- Utilities - Electric 90,000 American Electric Power Co., Inc. 3,082,500 41.0% 75,000 Central & South West Corp. 1,931,250 82,500 Cinergy Corp. 2,196,563 25,000 Delmarva Power & Light 503,125 80,000 Entergy Corp. 1,980,000 100,000 FPL Group, Inc. 3,925,000 70,000 General Public Utilities Corp. 2,100,000 100,000 Houston Industries, Inc. 4,312,500 237,000 Northeast Utilities 5,658,375 20,000 *Powergen PLC ADR(Partially Paid) 270,000 90,400 Public Service Co. of Colorado 2,960,600 171,000 Public Service Enterprise Group, Inc. 5,087,250 100,000 Texas Utilities Co. 3,612,500 60,000 Utilicorp United, Inc. 1,710,000 80,000 Western Resources, Inc. 2,520,000 ------------- 41,849,663 ------------- Utilities - Natural Gas 60,000 Enron Corp. 2,190,000 7.8% 170,000 MCN Corp. 3,187,500 75,000 Williams Cos., Inc. 2,550,000 ------------- 7,927,500 ------------- Utilities - 74,000 AT&T Corp. 3,755,500 Telecommunications 55,000 Bell Atlantic Corp. 3,066,250 23.7% 20,000 BellSouth Corp. 1,227,500 95,000 Frontier Corp. 2,161,250 150,000 GTE Corp. 5,006,250 20,000 NYNEX Corp. 835,000 100,000 Southern New England Telecommunications Corp. 3,362,500 70,000 Sprint Corp. 2,345,000 60,000 U.S. West Inc. 2,475,000 ------------- 24,234,250 ------------- Other 50,000 Chemed Corp. 1,693,750 18.9% 115,000 Hanson PLC 2,185,000 125,300 IES Industries, Inc. 2,772,262 115,000 Meditrust 3,665,625 60,000 Philip Morris Cos., Inc. 4,372,500 80,000 Storage Trust Reality 1,610,000 22,500 Storage USA Inc. 638,438 55,000 UST Inc. 2,390,000 ------------- 19,327,575 ------------- Total Common Stocks (Cost $91,383,532) 97,626,488
Shares Value ----------- ------------- CONVERTIBLE PREFERRED STOCKS -- 1.6% 30,000 Glendale Federal Bank, Series E, 8.75% 1,095,000 20,000 Oasis Residential, CV PFD, 9.00% 507,500 2,000 Sprint Corp., PFD, 8.25% 66,500 ------------- Total Convertible Preferred Stocks (Cost $1,589,000) $1,669,000 Face Amount ----------- CORPORATE BONDS -- 3.0% $ 1,000,000 Duke Power Co., 7.00%, 9/01/05 1,003,546 1,000,000 Pacific Telephone & Telegraph, 7.25%, 2/01/08 982,500 1,000,000 Virgina Electric & Power, 7.57%, 12/09/02 1,040,339 ------------- Total Corporate Bonds (Cost $2,759,242) 3,026,385 ------------- TOTAL INVESTMENTS (Cost $95,731,774) - 100.2% 102,321,873 Other Assets, less liabilities - (0.2)% (230,306) ------------- TOTAL NET ASSETS - 100.00% $102,091,567 =============
*Non-income producing See notes to financial statements
ABT UTILITY INCOME FUND, INC. Statement of Assets and Liabilities (Unaudited) May 31, 1995 - ------------------------------------------------------------------------ ASSETS Investments in securities at value (cost $95,731,774) $ 102,321,873 Receivables: Investment securities sold 1,550,582 Capital stock sold 26,647 Dividends 614,995 Interest 73,110 --------------- Total assets 104,587,207 --------------- LIABILITIES Payables: Investment securities purchased 1,136,213 Capital stock repurchased 475,270 Accrues expenses 98,796 Other liabilities 785,361 --------------- Total liabilities 2,495,640 --------------- NET ASSETS Source of Net Assets: Net capital paid in on shares of capital stock $ 99,920,227 Undistributed net investment income 270,335 Accumulated net realized gain (loss) (4,689,094) Net unrealized appreciation 6,590,099 -------------- Total net assets $ 102,091,567 =============== Shares outstanding (Note 2) 8,812,319 Net asset value and redemption price per share (total net assets divided by shares outstanding) $11.59 Offering price per share (net asset value divided by 95.25%)* $12.17 Statement of Operations (Unaudited) Six months ended May 31, 1995 - ------------------------------------------------------------------------ INVESTMENT INCOME Income: Dividends $ 2,975,171 Interest 134,549 -------------- Total income 3,109,720 -------------- Expenses: Investment advisory fees (Note 3) 252,294 Distribution Fees (Note 3) 75,688 Transfer agent fees and expenses 107,223 Administrative fees 43,585 Accounting fees 27,421 Custodian fees 11,837 Registration fees and expenses 18,386 Directors' fees and expenses 23,012 Insurance 11,135 Audit fees and expenses 11,477 Printing and shareholder communications 7,480 Legal fees and expenses 9,974 Other 14,644 -------------- Total expenses 614,156 -------------- Net investment gain 2,495,564 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments $ (1,726,748) Change in unrealized appreciation 9,814,256 -------------- Net gain on investments 8,087,508 Net increase in net assets from operations $10,583,072 ==============
*The sales charge is 4.75% on a single sale of less than $100,000, reduced on sales of $100,000 or more and certain other sales. See notes to financial statements ABT UTILITY INCOME FUND, INC. Statements of Changes in Net Assets (Unaudited) - --------------------------------------------------------------------------------
Six month ended Year ended May 31, 1995 November 30, 1994 --------------- ----------------- Change in net assets from operations Net investment income $ 2,495,564 $ 5,770,318 Net realized gain (loss) on investments (1,726,748) (2,962,346) Unrealized appreciation (depreciation) for the period 9,814,256 (17,252,068) --------------- --------------- Net increase (decrease) in net assets from operations 10,583,072 (14,444,096) --------------- --------------- Distributions to shareholders from: Net investment income (2,782,968) (6,649,221) Net realized gain 0 (6,791,278) Fund share transactions (Note 2 ) Net proceeds from sale of shares 883,924 3,908,680 Proceeds from distributions reinvested 2,073,544 10,351,847 Cost of shares redeemed (11,056,805) (26,643,987) --------------- --------------- Net increase (decrease) in net assets from Fund share transactions (8,099,337) (12,383,460) --------------- --------------- Total increase (decrease) (299,233) (40,268,055) Net Assets: Beginning of period 102,390,800 142,658,855 --------------- --------------- End of period $ 102,091,567 $ 102,390,800 =============== ===============
See notes to financial statements ABT UTILITY INCOME FUND, INC. Financial Highlights (Unaudited) - --------------------------------------------------------------------------------
Six Months Years ended November 30, Per share operating performance Ended ---------------------------------------------------- (For a share outstanding throughout the period) May 31, 1995 1994 1993 1992+ 1991 1990+ - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 10.73 $ 13.38 $ 12.85 $ 12.42 $ 12.09 $ 13.38 - ----------------------------------------------------------------------------------------------------------------------------------- Income from investment operations Net investment income 0.27 0.57 0.64 0.63 0.59 0.66 Net realized and unrealized gain (loss) 0.89 (1.93) 0.77 0.71 0.85 (0.76) -------- -------- -------- -------- -------- -------- Total from investment operations 1.16 (1.36) 1.41 1.34 1.44 (0.10) -------- -------- -------- -------- -------- -------- Less distributions Dividends from net investment income (0.30) (0.65) (0.63) (0.61) (0.65) (0.74) Distributions from net realized gains (0.64) (0.25) (0.30) (0.46) (0.45) -------- -------- -------- -------- -------- -------- (0.30) (1.29) (0.88) (0.91) (1.11) (1.19) -------- -------- -------- -------- -------- -------- Change in net asset value for period 0.86 (2.65) 0.53 0.43 0.33 (1.29) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 11.59 $ 10.73 $ 13.38 $ 12.85 $ 12.42 $ 12.09 - ----------------------------------------------------------------------------------------------------------------------------------- Total Return* 10.97% (11.00)% 11.23% 11.48% 12.80% (0.82)% Ratios/supplemental data Net assets, end of year $ 102,092 $ 102,391 $ 142,659 $ 140,294 $ 146,309 $ 140,678 Ratio to average net assets of: Expenses 1.22%** 1.05% 1.09% 1.17% 1.24% 1.25% Net investment income 4.95%** 4.77% 4.63% 5.10% 5.42% 5.31% Portfolio Turnover 27%** 50% 29% 47% 38% 33% - -----------------------------------------------------------------------------------------------------------------------------------
+ Based on the average of the number of shares outstanding during the year. * Does not reflect sales load. ** Annualized. See notes to financial statements ABT UTILITY INCOME FUND, INC. NOTES TO FINANCIAL STATEMENTS May 31, 1995 - -------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ABT Utility Income Fund, Inc. (the Fund) is a Maryland corporation. The Fund is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The following is a summary of significant accounting policies followed in the preparation of it financial statements. (a) VALUATION OF INVESTMENTS. Securities listed or trade on a recognized national stock exchange or NASDAQ are valued at the last reported sales prices on the principal exchange on which the securities are traded. Over-the-counter securities and listed securities for which no sale is reported are valued at the last current bid price. Securities for which market quotations are not readily available are valued at fair value as determined by management and approved in good faith by the Board of Directors. Securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value. (b) INVESTMENT TRANSACTIONS AND RELATED INVESTMENT INCOME. Investment transactions are accounted for on trade date basis. Interest income is recorded on a daily basis and dividend income is recorded on ex-dividend date. (c) INCOME TAXES. It is the Fund's intention to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no provision has been made for federal income taxes. Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations. 2. TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST As of May 31, 1995, there were 400 millions shares at $0.10 par value authorized. Transactions are summarized as follows:
Six months ended Year ended May 31, November 30, 1995 1994 ------------ -------------- Shares sold 80,881 328,593 Shares issued on reinvestment of distributions 190,736 853,590 Shares redeemed (1,005,983) (2,293,836) ------------ -------------- Net increase (decrease) in shares outstanding (734,366) (1,111,653) ============ ==============
3. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund pays monthly an investment advisory fee to Palm Beach Capital Management, Inc. (the Adviser) [formerly Palm Beach Capital Management, Ltd.] equal on an annual basis to 0.50% of the average daily net assets of the Fund. ABT Financial Services, Inc. (ABT), an affiliate of the Adviser, serves as the Fund's principal underwriter and distributor. During the six months ended May 31, 1995, ABT received $ for underwriting concessions on sales of shares and $ in commissions as broker. The Fund has adopted a distribution plan (12b-1 Plan) pursuant to which the Fund reimburses ABT monthly (subject to a limit of 0.25% per annum of the Fund's average daily net assets) for ABT's costs and expenses in connection with any activity that is primarily intended to result in a sale of Fund shares. Such distribution fees are set forth in the Statement of Operations. During the year ended November 30, 1994, The Bank of New York provided administrative and accounting services for the Fund, for which they received the fees shown in the Statement of Operations. ABT UTILITY INCOME FUND NOTES TO FINANCIAL STATEMENTS May 31, 1995 - -------------------------------------------------------------------------------- Effective December 1, 1994, administrative and accounting services are being provided by the Adviser, and all fees for these services will be paid to the Adviser. Certain officers and a director of the Fund are also officers and/or directors of the Adviser and ABT. 4. INVESTMENT TRANSACTIONS During the six months ended May 31, 1995, the cost of purchases and the proceeds from sales of investment securities other than short-term obligations were $13,597,175 and $20,557,845, The cost of securities for federal income tax purposes is the same as that shown in the investment portfolio. Realized gains and losses are reported on an identified cost basis. At May 31, 1995, the aggregate gross unrealized appreciation and depreciation of portfolio securities, based on cost for federal income tax purposes, was as follows: Unrealized appreciation Unrealized depreciation -------------- Net unrealized appreciation $ 6,590,099 ==============
5. CAPITAL LOSS CARRYFORWARD At November 30, 1994, the Fund had a net realized capital loss carry forward of $2,962,346, which may be utilized to offset future capital gains. Unless utilized, such loss carryforward expires in 2002. 6. RECLASSIFICATION During the year ended November 30, 1994, the Fund adopted AICPA Statement of Position, Determination, Disclosure and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies. Accordingly, cumulative permanent book and tax basis differences have been reclassified as of the beginning of the fiscal year to reflect a decrease in undistributed net investment income, and increase in accumulated net realized gain of $132,215. These reclassifications did not affect net investment income, net realized gain or net assets for the year ended November 30, 1994. 7. REORGANIZATION On March 3, 1995, the Adviser and certain of its affiliates entered into an Asset Purchase Agreement with First Union National Bank (First Union) pursuant to which First Union would acquire subtantially all of the assets of the Adviser (the Acquisition). On March 15, 1995, in connection with the Acqisition, the Fund, entered into an Agreement and Plan of Reorganization (the Plan) with First Union Funds, on behalf of First Union Utility Portfolio (the Portfolio). The Plan provides that the Fund will transfer substantially all of its assets in exchange for Class A shares of beneficial interest of the Portfolio, a diversified series of First Union Funds, on a tax-free basis. It is anticipated that the Plan will be consummated at the close of business on June 30, 1995.
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