-----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, IS4wLMLO0zvVkEARmdHF2I+Pu1OKLCKycYVOTtHaoc0vf2jbnuB5gTBgeg0wgMg4 Kv2M0OtfIw4WcnrCTCk1iA== 0000912057-96-010928.txt : 19960530 0000912057-96-010928.hdr.sgml : 19960530 ACCESSION NUMBER: 0000912057-96-010928 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960529 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAIRS & POWER GROWTH FUND INC CENTRAL INDEX KEY: 0000061628 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 416019924 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-00802 FILM NUMBER: 96573332 BUSINESS ADDRESS: STREET 1: 332 MINNESOTA ST STE W-2062 STREET 2: FIRST NATIONAL BANK BUILDING CITY: ST PAUL STATE: MN ZIP: 55101 BUSINESS PHONE: 6122228478 MAIL ADDRESS: STREET 1: FIRST NATIONAL BANK BUILDING W-2062 STREET 2: 332 MINNESOTA STREET CITY: ST PAUL STATE: MN ZIP: 55101 FORMER COMPANY: FORMER CONFORMED NAME: MAIRS & POWER FUND INC DATE OF NAME CHANGE: 19680607 N-30B-2 1 N-30B-2 - -------------------------------- ------------------ MAIRS AND POWER GROWTH FUND, INC. ------------------ 1ST QUARTER REPORT March 31, 1996 May 22, 1996 To Our Shareholders: On March 31, 1996, the net asset value per share of Mairs and Power Growth Fund was $58.84, a 3.9% increase from the year end valuation. This compares with returns of 5.4% for the Standard & Poor's 500 Stock Index and 9.8% for the Dow Jones Industrial Average. For the five year period ended March 31, the Fund registered an average annual return of 18%. In a study of mutual funds performance by CDA/ Wiesenberger, the Fund ranked 29th out of 320 Long-Term Growth Funds for the five year period. A WALL STREET JOURNAL article appearing on April 16 listed Mairs and Power Growth Fund as one of 30 midsize-company funds ranked as best funds to buy now. The Fund was one of five funds featured in a SUNDAY NEW YORK TIMES article on May 19 entitled, "Small Funds that Pack a Punch." The U.S. economy experienced stronger growth in the first quarter with G.D.P. advancing at an annual rate of 2.8%. The strength was broad-based led by rising employment, higher personal income, increased retail sales and improved consumer sentiment. Inflation remains well contained with the Consumer Price Index having risen just 2.9% over the past twelve months despite a recent spike in energy costs. Commodity prices have risen in recent months reflecting both higher grain and energy prices. This in turn has caused fear of higher inflation rates and has resulted in rising interest rates. We believe that these fears may be exaggerated. Labor costs account for about 70% of the cost of production while commodity costs account for less than 10%. Clearly, labor costs are the single most important determinant of U.S. inflation. Unit labor costs show little change with modestly rising wages offset, in large measure, by improving business productivity, which advanced at a 2.6% annual rate in the first quarter. Unit labor costs inched up at a 0.6% rate in the quarter, showing that inflation is under control. Corporate profits continued to perform well in the first quarter with operating earnings for all U.S. corporations rising about 8%. We believe that this rate of increase will continue through the balance of the year as profit margins continue to benefit from several years of corporate restructuring made necessary in order to strengthen America's competitive position in world markets. As a consequence, rising exports have been the major contributor to U.S. economic growth over the past five years, a period in which U.S. growth has out-distanced that of both Japan and Western Europe. The stock market has also performed well since the first of the year despite rising interest rates. Moderate economic growth coupled with continuing strong earnings provide a favorable environment for investors and we believe these conditions should prevail throughout the year. Valuations are generally in line with other periods of modest inflation and speculative activity has been largely confined to the new issue market. From a purely historical perspective, the stock market has not experienced a meaningful decline in the months immediately preceding a U.S. presidential election in this century. Therefore, we are constructive on our outlook for the balance of the year. George A. Mairs SCHEDULE OF INVESTMENTS AT MARCH 31, 1996 - --------------------------------------------------------------------------------
NUMBER OF MARKET SHARES COMMON STOCK COST VALUE - --------- ------------------------------------------ ------------ ------------ CHEMCAL 3.3% 96,000 Ecolab, Inc. $ 1,458,350 $ 2,880,000 ------------ ------------ CONSUMER 12.0% 83,000 Darden Restaurants 676,113 1,120,500 56,000 General Mills, Inc. 1,581,433 3,269,000 51,000 Hormel Foods 1,270,927 1,338,750 85,810 Jostens, Inc. 1,382,493 1,919,999 85,000 The Toro Company 1,715,582 2,730,625 ------------ ------------ 6,626,548 10,378,874 ------------ ------------ DRUGS AND HOSPITAL SUPPLIES 9.4% 22,000 Baxter International, Inc. 398,146 995,500 5,500 Caremark International Inc. 40,230 138,188 30,000 Johnson & Johnson 507,824 2,767,500 63,000 Pfizer Inc. 846,111 4,236,750 ------------ ------------ 1,792,311 8,137,938 ------------ ------------ FINANCIAL 14.2% 73,000 First Bank System, Inc. 1,201,913 4,352,625 120,000 Norwest Corporation 867,200 4,410,000 64,000 St. Paul Companies, Inc. 1,632,340 3,552,000 ------------ ------------ 3,701,453 12,314,625 ------------ ------------ INFORMATION SERVICES 3.9% 50,000 DeLuxe Corp. 499,872 1,568,750 107,500 Merrill Corporation 1,255,455 1,800,625 ------------ ------------ 1,755,327 3,369,375 ------------ ------------ MEDICAL DEVICES 11.0% 113,000 Medtronic, Incorporated 846,234 6,737,625 75,000 St. Jude Medical, Inc. 2,194,685 2,798,437 ------------ ------------ 3,040,919 9,536,062 ------------ ------------ NATURAL RESOURCES 2.7% 50,000 Weyerhaeuser Company 1,564,914 2,306,250 ------------ ------------ RETAILING 5.3% 38,000 Dayton Hudson Corporation 1,697,872 3,225,250 44,000 SUPERVALU Inc. 967,086 1,358,500 ------------ ------------ 2,664,958 4,583,750 ------------ ------------ TECHNOLOGY 14.0% 50,025 Emerson Electric Co. 1,906,456 4,039,519 25,000 Honeywell Inc. 845,247 1,381,250 92,000 MTS Systems Corporation 1,839,898 3,450,000 70,000 National Computer Systems Inc. 1,236,063 1,417,500 105,750 T S I Inc. 473,049 1,877,062 ------------ ------------ 6,300,713 12,165,331 ------------ ------------ TELECOMMUNICATIONS 4.9% 123,000 ADC Telecommunications Inc. 534,015 4,243,500 ------------ ------------ OTHER INDUSTRIALS 13.8% 250,000 BMC Industries, Inc. 511,107 5,375,000 153,000 Graco Inc. 1,342,369 2,983,500 55,000 Minnesota Mining & Manufacturing Company 1,629,300 3,554,375 ------------ ------------ 3,482,776 11,912,875 ------------ ------------ TOTAL COMMON STOCKS 94.5% $ 32,922,284 $ 81,828,580 Other Assets in Excess of Liabilities 5.5% 4,797,557 TOTAL NET ASSETS 100% $ 86,626,137 ------------ ------------
STATEMENT OF NET ASSETS AT MARCH 31, 1996 - -------------------------------------------------------------------------------- ASSETS Common stocks as annexed, at market value (cost $32,922,824).......................... $ 81,828,580 Cash.................................................................................. 5,385,529 Dividends and interest receivable..................................................... 97,380 Receivables for securities sold, not yet delivered.................................... 0 Prepaid expense....................................................................... 31,952 ------------ $ 87,343,441 LIABILITIES Accrued management fee........................................ $ 43,291 Accrued custodian and transfer agent fee...................... 11,285 Payable for securities purchased, not yet received............ 662,728 717,304 ------------ ------------ NET ASSETS Equivalent to $58.84 per share on 1,472,206 shares outstanding........................ $ 86,626,137 ------------ ------------
- -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS FOR THE THREE MONTHS ENDED MARCH 31, 1996 NET ASSETS, December 31, 1995......................................................... $ 70,536,880 Net investment income, per statement below.................... $ 199,782 Net accrued income in price of shares sold and repurchased.... 3,985 ------------ 203,767 Distribution to shareholders.................................. 0 203,767 ------------ Fund shares issued and repurchased: Received for 250,816 shares issued.......................... 14,419,095 Paid for 23,935 shares repurchased.......................... 1,373,924 13,045,171 ------------ Increase in unrealized net appreciation (depreciation) of investments................. 2,840,319 Net gain or (loss) realized from sales of securities.................................. 0 Distribution from net realized gain................................................... 0 ------------ NET ASSETS, March 31, 1996............................................................ $ 86,626,137 ------------ ------------
- -------------------------------------------------------------------------------- STATEMENT OF NET INVESTMENT INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1996 INVESTMENT INCOME Dividends............................................................................. $ 333,033 Interest.............................................................................. 46,794 ------------ 379,827 EXPENSES Management fee (Note B)....................................... $ 123,243 Fees and expenses of custodian, transfer agent and dividend disbursing agent (Note B).................................... 31,122 Legal and auditing fees and expenses.......................... 4,948 Insurance..................................................... 2,006 Other Fees and Expenses....................................... 18,726 180,045 ------------ ------------ NET INVESTMENT INCOME................................................................. $ 199,782 ------------ ------------
NOTE A: No provision has been made for Federal income taxes as it is the intention of the Fund to comply with the provisions of the Internal Revenue Code available to investment companies and to make distributions of income and security profits which will be sufficient to relieve it from all or substantially all income taxes. NOTE B: The investment advisory fee was paid to Mairs and Power, Inc., which is owned by individuals who are directors and officers of the Fund, for its services as investment adviser. Investment advisory fees are paid to the adviser pursuant to an advisory agreement approved by the Directors of the Fund. The advisor fee is computed each month and is 1/20th of one percent of the net asset value of the Fund on the last valuation day of the month. The transfer agent fee was also paid to Mairs and Power, Inc. which serves as transfer agent. Directors of the Fund not affiliated with Mairs and Power, Inc. received no compensation during this period. No compensation was paid to any other director or officer of the Fund. SUPPLEMENTARY INFORMATION: Purchases and sales of investment securities during the three months ended March 31, 1996 aggregated $11,257,450 and $-0- respectively. --------------------------------------------------------------------- MAIRS AND POWER GROWTH FUND, INC. --------------------------- A NO-LOAD FUND W-2062 FIRST NATIONAL BANK BUILDING, 332 MINNESOTA STREET, ST. PAUL, MINNESOTA 55101 612-222-8478 SHAREHOLDER INFORMATION: 800-304-7404 SUMMARY OF FINANCIAL INFORMATION - -------------------------------------------------------------------------------- This table covers a period of generally rising common stock prices. The results shown should not be considered as a representation of the dividend income or capital gain or loss which may result from an investment made in the Fund today.
PER SHARE ------------------------------------------------- DISTRIBUTIONS DIVIDENDS OF REALIZED FROM NET SHARES TOTAL NET NET ASSET SECURITIES INVESTMENT DATES OUTSTANDING ASSETS VALUE GAINS INCOME - -------------------- ------------ ------------ ------------- ----------------- --------------- Dec. 31, 1976 1,078,864 $ 13,821,528 $ 12.81 $ 0.26 Dec. 31, 1977 1,057,928 13,145,624 12.43 0.33 Dec. 31, 1978 998,265 13,282,487 13.31 0.35 Dec. 31, 1979 914,635 14,104,765 15.42 0.45 Dec. 31, 1980 840,882 14,540,014 17.29 0.55 Dec. 31, 1981 861,678 13,148,158 15.26 $ 0.74 0.60 Dec. 31, 1982 850,942 16,784,217 19.72 0.58 0.50 Dec. 31, 1983 881,592 18,972,177 21.52 0.70 0.48 Dec. 31, 1984 872,069 17,304,204 19.84 0.76 0.46 Dec. 31, 1985 856,738 21,553,457 25.16 0.86 0.46 Dec. 31, 1986 893,850 22,235,453 24.88 2.74 0.40 Dec. 31, 1987 914,139 19,816,097 21.68 2.29 0.48 Dec. 31, 1988 929,039 20,630,251 22.21 1.21 0.41 Dec. 31, 1989 866,584 22,630,081 26.11 1.83 0.43 Dec. 31, 1990 867,432 22,501,587 25.94 0.70 0.42 Dec. 31, 1991 904,023 31,440,529 34.78 1.58 0.39 Dec. 31, 1992 956,814 34,363,306 35.91 1.16 0.40 Dec. 31, 1993 1,006,285 39,081,010 38.84 1.22 0.43 Dec. 31, 1994 1,064,019 41,889,850 39.37 0.98 0.65 Dec. 31, 1995 1,245,325 70,536,880 56.64 1.51 0.56 Mar. 31, 1996 1,472,206 86,626,137 58.84
No adjustment has been made for any income tax payable by shareholders on capital gain distributions accepted in shares. This report is not to be used in connection with the offering of shares of the Fund unless accompanied or preceded by an effective Prospectus. Please call or write if you desire further information. AVERAGE ANNUAL TOTAL RETURNS -- THE AVERAGE ANNUAL TOTAL RETURNS FOR THE FUND (PERIODS ENDED MARCH 31, 1996) ARE AS FOLLOWS: 1 YEAR: +39.5% 5 YEARS: +18.0% 10 YEARS: +14.7% PAST INVESTMENT RESULTS SHOULD NOT BE TAKEN AS NECESSARILY REPRESENTATIVE OF FUTURE PERFORMANCE. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. OFFICERS AND DIRECTORS - -------------------------------------------------------------------------------- George A. Mairs, III William B. Frels Peter G. Robb Kathleen M. Kellerman President and Secretary and Vice-President and Treasurer Director Director Director Litton E.S. Field Donald E. Garretson J. Thomas Simonet Director Director Director
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