-----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, LtOHiY1c8eQs4/t0z87Z4fY6JlMalHPkxBNP5maOCNE4BwD+J4dzwZCvfmrcBtR1 D3OYeZHUBFyDbhh0eHw32A== 0000789289-97-000010.txt : 19970305 0000789289-97-000010.hdr.sgml : 19970305 ACCESSION NUMBER: 0000789289-97-000010 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19970304 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLANCHARD FUNDS CENTRAL INDEX KEY: 0000789289 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133333918 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04579 FILM NUMBER: 97550162 BUSINESS ADDRESS: STREET 1: 41 MADSON AVE 24TH FL CITY: NEW YORK STATE: NY ZIP: 10010 BUSINESS PHONE: 2127797979 MAIL ADDRESS: STREET 1: 41 MADISON AVENUE 24TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10010 FORMER COMPANY: FORMER CONFORMED NAME: BLANCHARD STRATEGIC GROWTH FUND DATE OF NAME CHANGE: 19901225 N-30D 1 BLANCHARD GLOBAL GROWTH FUND (A PORTFOLIO OF THE BLANCHARD GROUP OF FUNDS) ADDENDUM TO THE ANNUAL REPORTS DATED SEPTEMBER 30, 1996 BLANCHARD GLOBAL GROWTH FUND Addendum to Annual Report for the period ended September 30, 1996 Omitted from the most recent Annual Report for Blanchard Global Growth Fund, were the results of the last Special Meeting of Shareholders of Blanchard Global Growth Fund. The Shareholders of Blanchard Global Growth Fund (`BGGF''), voted to approve the following items: A NEW SUB-ADVISORY CONTRACT BETWEEN VIRTUS CAPITAL MANAGEMENT, INC. AND MELLON CAPITAL MANAGEMENT CORPORATION, A DELAWARE CORPORATION, ON BEHALF OF BGGF. The motion was duly adopted with 3,265,780 shares having voted to approve the proposed Agreement, 94,571 having voted negatively and 139,948 shares having abstained from voting. THE REVISION OF THE AMENDMENT TO THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION OF BGGF, CONCERNING COMMODITIES. The motion was duly adopted with 2,987,549 shares having voted to approve the proposed Agreement, 240,566 having voted negatively and 175,067 shares having abstained from voting. THE REVISION OF THE AMENDMENT TO THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION OF BGGF, CONCERNING BUYING ON MARGIN. The motion was duly adopted with 2,852,146 shares having voted to approve the proposed Agreement, 323,192 having voted negatively and 97,116 shares having abstained from voting. March 4, 1997 FEDERATED INVESTORS Federated Investors Tower Pittsburgh, PA 15222-3779 Federated Securities Corp. is the distributor of the Fund and is a subsidiary of Federated Investors. Cusip 093265106 G01687-13 (3/97) President's Message July 1, 1996 Dear Shareholder, I'm pleased to present the Annual Report for the Blanchard Global Growth Fund for the fiscal year ended April 30, 1996. This report provides you with complete financial information for the Fund, including a performance update from Fiduciary Trust International*, a list of investments included in the Fund, and the FundOs financial statements. If you would like the most recent performance update for your Fund, or if you have other questions, please call Investors' Services at 1-800-829-3863. Thank you for your confidence in the Blanchard Group of Funds as a way to put your money to work for you. We remain committed to delivering the highest level of personal service. Sincerely, Edward C. Gonzales President * Effective May 28, 1996, the FundOs sub-manager changed to Mellon Capital Management Corp. Dear Shareholders, Your Blanchard Global Growth Fund showed a total return of 19.68% for its fiscal year ended April 30, 1996. This return exceeded the average return of international equity funds, domestic and international bond funds, and lagged only U.S. equity funds, according to Lipper Analytical Services, Inc. As a conservative, diversified asset allocation fund, your Blanchard Global Growth Fund fulfilled its objective and gave a solid absolute return. Naturally, past performance is no guarantee of future performance. As with all mutual funds, investment return and principal value will vary with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost. Additionally, foreign investments entail special currency, credit, interest rate and political risks not associated with domestic investments and equities typically carry higher price volatility than bonds. Here's a closer look at how we employed the Fund's global asset allocation strategy to provide you with a positive total return while diversifying risk throughout the past fiscal year. The Value of a $10,000 Investment in the Blanchard Global Growth Fund inception 6/1/86 through 4/30/96 as compared to the Standard & PoorOs 500 for the same period. Avg. Annual Returns through 4/30/96 Blanchard Global Growth Fund* 1 year 19.68% 5 year 8.55% since inception (6/1/86) 8.75% [GRAPH] *The average annual returns quoted reflect reinvestment of distributions, but do not reflect the deduction of the one-time account opening fee. If reflected, the returns would be lower. Total return includes changes in principal value. Average annual return is total return annualized and compounded. Past performance is no guarantee of future results. *Reflects deduction of the one-time $75 account opening fee. +Source: The Standard & Poor's 500 is an unmanaged composite index of the U.S. Stock Market performance. Investments cannot be made in an index. This chart is for comparative purposes only and is not intended to reflect on future performance of the Blanchard Global Growth Fund or the index. The Year In Review The Fund's most heavily weighted asset class throughout the year was U.S. stocks, and these were the primary driver of the Fund's performance. Due to the desire for diversification, our commitment to U.S. stocks hovered around 50% throughout the year. Foreign and emerging market equities, which accounted for about 25% of the portfolio, significantly lagged in 1995, but turned in a solid performance in 1996. U.S. and international fixed income made up about 20% of the portfolio. They did reasonably well in 1995, but have lagged this year. We stayed with a tiny position in gold and cash for the entire fiscal year and those were correct allocations. A Look Ahead It has been our pleasure at Fiduciary Trust International to serve as the Chief Asset Allocation Strategist for your Blanchard Global Growth Fund. However, after receiving shareholder approval on May 24, 1996, Mellon Capital Management Corp. of San Francisco has taken over that responsibility for us. The portfolio management team of your Blanchard Global Growth Fund will now be led by the very able Charles J. Jacklin, Senior Vice President and Director of Asset Allocation Strategies for Mellon Capital Management Corp. Thank you for investing in the Blanchard Global Growth Fund. We wish you the very best in the months and years ahead. Sincerely, Jeremy Biggs Chief Investment Officer Fiduciary Trust International Chief Asset Allocation Strategist of the Blanchard Global Growth Fund BLANCHARD GLOBAL GROWTH FUND PORTFOLIO OF INVESTMENTS APRIL 30, 1996 - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- U.S. EQUITY SECURITIES SECTOR--45.3% -------------------------------------------------------------------------------- AUTOMOTIVE & RELATED--1.8% -------------------------------------------------------------------------------- 15,000 Chrysler Corp. $ 941,250 -------------------------------------------------------------------------------- 7,000 Harley Davidson, Inc. 308,875 -------------------------------------------------------------------------------- ------------- Total 1,250,125 -------------------------------------------------------------------------------- ------------- BANKING--4.3% -------------------------------------------------------------------------------- 10,000 Citicorp 787,500 -------------------------------------------------------------------------------- 20,000 Mellon Bank Corp. 1,075,000 -------------------------------------------------------------------------------- 15,000 NationsBank Corp. 1,196,250 -------------------------------------------------------------------------------- ------------- Total 3,058,750 -------------------------------------------------------------------------------- ------------- CHEMICALS & RELATED--6.1% -------------------------------------------------------------------------------- 10,000 Du Pont (E.I.) de Nemours & Co. 803,750 -------------------------------------------------------------------------------- 14,000 Grace (W.R.) & Co. 1,085,000 -------------------------------------------------------------------------------- 8,000 Monsanto Co. 1,212,000 -------------------------------------------------------------------------------- 35,000 Morton International, Inc. 1,238,125 -------------------------------------------------------------------------------- ------------- Total 4,338,875 -------------------------------------------------------------------------------- ------------- CONSUMER & RELATED--3.3% -------------------------------------------------------------------------------- 25,000 Home Depot, Inc. 1,184,375 -------------------------------------------------------------------------------- 15,000 Eastman Kodak Co. 1,147,500 -------------------------------------------------------------------------------- ------------- Total 2,331,875 -------------------------------------------------------------------------------- ------------- CONSUMER NON-DURABLES--1.3% -------------------------------------------------------------------------------- 15,000 PepsiCo, Inc. 952,500 -------------------------------------------------------------------------------- ------------- ELECTRONICS & ELECTRICAL--3.1% -------------------------------------------------------------------------------- 20,000 Avnet, Inc. 1,055,000 15,000 General Electric Co. 1,162,500 -------------------------------------------------------------------------------- ------------- Total 2,217,500 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- U.S. EQUITY SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- ENTERTAINMENT & LEISURE--5.1% -------------------------------------------------------------------------------- 45,000 Carnival Corp., Class A $ 1,305,000 -------------------------------------------------------------------------------- 18,000 Disney (Walt) Co. 1,116,000 -------------------------------------------------------------------------------- 30,000 Time Warner, Inc. 1,226,250 -------------------------------------------------------------------------------- ------------- Total 3,647,250 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--2.2% -------------------------------------------------------------------------------- 20,000 American Express Co. 970,000 -------------------------------------------------------------------------------- 20,000 Capital One Financial Corp. 590,000 -------------------------------------------------------------------------------- ------------- Total 1,560,000 -------------------------------------------------------------------------------- ------------- FOOD, BEVERAGE & TOBACCO--1.9% -------------------------------------------------------------------------------- 15,000 Philip Morris Cos., Inc. 1,351,875 -------------------------------------------------------------------------------- ------------- HEALTH CARE--1.5% -------------------------------------------------------------------------------- 20,000 Columbia/HCA Healthcare Corp. 1,062,500 -------------------------------------------------------------------------------- ------------- INDUSTRIAL & RELATED--1.7% -------------------------------------------------------------------------------- 20,000 Motorola, Inc. 1,225,000 -------------------------------------------------------------------------------- ------------- INSURANCE--1.2% -------------------------------------------------------------------------------- 30,100 Washington National Corp. 831,513 -------------------------------------------------------------------------------- ------------- METALS & MINING--1.5% -------------------------------------------------------------------------------- 11,000 Canyon Resources Corp. 40,562 -------------------------------------------------------------------------------- 70,000 Santa Fe Pacific Gold 1,041,250 -------------------------------------------------------------------------------- ------------- Total 1,081,812 -------------------------------------------------------------------------------- ------------- PHARMACEUTICALS--4.3% -------------------------------------------------------------------------------- 20,000 Pfizer, Inc. 1,377,500 -------------------------------------------------------------------------------- 20,000 Pharmacia & Upjohn, Inc. 765,000 -------------------------------------------------------------------------------- 8,000 Warner-Lambert Co. 894,000 -------------------------------------------------------------------------------- ------------- Total 3,036,500 -------------------------------------------------------------------------------- ------------- TECHNOLOGY--1.3% -------------------------------------------------------------------------------- 20,000 Compaq Computer Corp. 932,500 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- U.S. EQUITY SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- TELECOMMUNICATIONS--3.5% -------------------------------------------------------------------------------- 30,000 (a)Airtouch Communications, Inc. $ 937,500 -------------------------------------------------------------------------------- 22,000 SBC Communications, Inc. 1,100,000 -------------------------------------------------------------------------------- 25,000 (a)Tele-Communications, Inc., Class A 478,125 -------------------------------------------------------------------------------- ------------- Total 2,515,625 -------------------------------------------------------------------------------- ------------- UTILITIES--1.2% -------------------------------------------------------------------------------- 20,000 GTE Corp. 867,500 -------------------------------------------------------------------------------- ------------- TOTAL UNITED STATES (IDENTIFIED COST $30,505,423) 32,261,700 -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--22.9% ------------------------------------------------------------------------------------------------ AUSTRALIA--0.5% -------------------------------------------------------------------------------- METALS & MINING--0.3% -------------------------------------------------------------------------------- 30,000 Western Mining Corporation Holdings Ltd. 218,696 -------------------------------------------------------------------------------- ------------- PRINTING & PUBLISHING--0.2% -------------------------------------------------------------------------------- 28,863 News Corporation Ltd., Pfd. 148,510 -------------------------------------------------------------------------------- ------------- TOTAL AUSTRALIA 367,206 -------------------------------------------------------------------------------- ------------- CANADA--4.7% -------------------------------------------------------------------------------- METALS & MINING--4.7% -------------------------------------------------------------------------------- 80,000 Cambior, Inc. 1,116,416 -------------------------------------------------------------------------------- 190,000 Eldorado Corp., Ltd. 1,137,348 -------------------------------------------------------------------------------- 135,000 TVX Gold, Inc. 1,070,878 -------------------------------------------------------------------------------- ------------- Total 3,324,642 -------------------------------------------------------------------------------- ------------- TOTAL CANADA 3,324,642 -------------------------------------------------------------------------------- ------------- FRANCE--1.3% -------------------------------------------------------------------------------- ELECTRONICS & ELECTRICAL--0.2% -------------------------------------------------------------------------------- 600 Legrand 116,691 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.4% -------------------------------------------------------------------------------- 2,500 AXA 148,960 --------------------------------------------------------------------------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- FRANCE--CONTINUED -------------------------------------------------------------------------------- FINANCIAL SERVICES--CONTINUED -------------------------------------------------------------------------------- 1,300 Societe Generale, Paris $ 150,943 -------------------------------------------------------------------------------- ------------- Total 299,903 -------------------------------------------------------------------------------- ------------- MULTI-INDUSTRY--0.2% -------------------------------------------------------------------------------- 1,000 Primagaz Cie 107,209 -------------------------------------------------------------------------------- ------------- OIL & RELATED--0.3% -------------------------------------------------------------------------------- 3,200 Total SA-B 217,173 -------------------------------------------------------------------------------- ------------- TEXTILE & APPAREL--0.3% -------------------------------------------------------------------------------- 1,122 Castorama Dubois Investisse 214,738 -------------------------------------------------------------------------------- ------------- TOTAL FRANCE 955,714 -------------------------------------------------------------------------------- ------------- GERMANY--0.8% -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--0.2% -------------------------------------------------------------------------------- 200 Siemens AG 109,517 -------------------------------------------------------------------------------- ------------- MACHINERY--0.2% -------------------------------------------------------------------------------- 380 Mannesmann AG 129,819 -------------------------------------------------------------------------------- ------------- MEDICAL PRODUCTS & RELATED--0.3% -------------------------------------------------------------------------------- 1,350 Fresenius, Vorzugsaktien 208,995 -------------------------------------------------------------------------------- ------------- UTILITIES & RELATED--0.2% -------------------------------------------------------------------------------- 2,750 Veba AG 136,701 -------------------------------------------------------------------------------- ------------- TOTAL GERMANY 585,032 -------------------------------------------------------------------------------- ------------- HONG KONG--1.6% -------------------------------------------------------------------------------- CONSTRUCTION--0.1% -------------------------------------------------------------------------------- 35,000 New World Infrastructure 77,823 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.7% -------------------------------------------------------------------------------- 175,932 First Pacific Co. Ltd. 234,258 -------------------------------------------------------------------------------- 17,976 HSBC Holdings 268,403 -------------------------------------------------------------------------------- ------------- Total 502,661 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- HONG KONG--CONTINUED -------------------------------------------------------------------------------- REAL ESTATE--0.6% -------------------------------------------------------------------------------- 30,000 Cheung Kong $ 214,272 -------------------------------------------------------------------------------- 23,000 Sun Hung Kai Properties 219,281 -------------------------------------------------------------------------------- ------------- Total 433,553 -------------------------------------------------------------------------------- ------------- RETAIL--0.1% -------------------------------------------------------------------------------- 115,000 Giordano International Ltd. 106,296 -------------------------------------------------------------------------------- ------------- TOTAL HONG KONG 1,120,333 -------------------------------------------------------------------------------- ------------- INDIA--0.2% -------------------------------------------------------------------------------- HOTELS--0.1% -------------------------------------------------------------------------------- 2,300 Indian Hotels Co. Ltd, GDR 66,700 -------------------------------------------------------------------------------- ------------- TEXTILE & APPAREL--0.1% -------------------------------------------------------------------------------- 4,700 Indian Rayon & Industries Ltd., GDR 72,850 -------------------------------------------------------------------------------- ------------- TOTAL INDIA 139,550 -------------------------------------------------------------------------------- ------------- INDONESIA--0.1% -------------------------------------------------------------------------------- MACHINERY--0.1% -------------------------------------------------------------------------------- 48,000 PT Bukaka Teknik Utama 82,280 -------------------------------------------------------------------------------- ------------- IRELAND--0.2% -------------------------------------------------------------------------------- HOUSING & CONSTRUCTION--0.2% -------------------------------------------------------------------------------- 14,089 CRH PLC 126,786 -------------------------------------------------------------------------------- ------------- ITALY--0.3% -------------------------------------------------------------------------------- TELECOMMUNICATIONS--0.3% -------------------------------------------------------------------------------- 91,000 Telecom Italia Mobile 200,992 -------------------------------------------------------------------------------- ------------- JAPAN--6.6% -------------------------------------------------------------------------------- CHEMICALS & RELATED--0.7% -------------------------------------------------------------------------------- 28,000 Daicel Chemical Industries 186,836 -------------------------------------------------------------------------------- 12,000 Sekisui Chemical Co. 151,427 --------------------------------------------------------------------------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- JAPAN--CONTINUED -------------------------------------------------------------------------------- CHEMICALS & RELATED--CONTINUED -------------------------------------------------------------------------------- 20,000 Sumitomo Bakelite Co., Ltd. $ 160,604 -------------------------------------------------------------------------------- ------------- Total 498,867 -------------------------------------------------------------------------------- ------------- ELECTRONICS & ELECTRICAL EQUIPMENT--1.6% -------------------------------------------------------------------------------- 9,000 Canon Inc. 178,959 -------------------------------------------------------------------------------- 7,000 Canon Sales Co., Inc. 196,071 -------------------------------------------------------------------------------- 23,000 Hitachi Ltd. 248,458 -------------------------------------------------------------------------------- 15,000 Minebea Co. 137,804 -------------------------------------------------------------------------------- 3 NTT Data Communications Systems Co. 104,966 -------------------------------------------------------------------------------- 2,000 Rohm Co 127,336 -------------------------------------------------------------------------------- 6,000 Yamatake-Honeywell 113,570 -------------------------------------------------------------------------------- ------------- Total 1,107,164 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--1.0% -------------------------------------------------------------------------------- 11,000 Daiwa Securities 169,304 -------------------------------------------------------------------------------- 134,000 Nikkei 300 Stock Index List Fund 403,518 -------------------------------------------------------------------------------- 7,000 Nomura Securities Co. Ltd. 152,574 -------------------------------------------------------------------------------- ------------- Total 725,396 -------------------------------------------------------------------------------- ------------- HOUSING & CONSTRUCTION--0.1% -------------------------------------------------------------------------------- 13,000 Taisei Corp. 100,664 -------------------------------------------------------------------------------- ------------- INDUSTRIAL & RELATED--0.7% -------------------------------------------------------------------------------- 34,000 Mitsubishi Heavy Industries Ltd. 303,580 -------------------------------------------------------------------------------- 58,000 NKK Corp. 181,865 -------------------------------------------------------------------------------- ------------- Total 485,445 -------------------------------------------------------------------------------- ------------- INSURANCE--0.4% -------------------------------------------------------------------------------- 28,000 Sumitomo Marine & Fire 266,603 -------------------------------------------------------------------------------- ------------- MACHINERY--0.6% -------------------------------------------------------------------------------- 16,000 Komatsu Ltd. 154,486 --------------------------------------------------------------------------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- JAPAN--CONTINUED -------------------------------------------------------------------------------- MACHINERY--CONTINUED -------------------------------------------------------------------------------- 6,000 Mori Seiki Co. $ 137,087 -------------------------------------------------------------------------------- 9,000 Takuma Co., Ltd. 138,521 -------------------------------------------------------------------------------- ------------- Total 430,094 -------------------------------------------------------------------------------- ------------- REAL ESTATE--0.3% -------------------------------------------------------------------------------- 14,000 Mitsubishi Estate Co., Ltd. 196,740 -------------------------------------------------------------------------------- ------------- RETAIL--0.5% -------------------------------------------------------------------------------- 7,000 Credit Saison Co. Ltd. 173,319 -------------------------------------------------------------------------------- 11,000 Hankyu Department Stores, Inc. 160,891 -------------------------------------------------------------------------------- ------------- Total 334,210 -------------------------------------------------------------------------------- ------------- TEXTILE & APPAREL--0.5% -------------------------------------------------------------------------------- 11,000 Onward Kashiyama Co. Ltd. 186,129 -------------------------------------------------------------------------------- 17,000 Nisshinbo Industries 188,519 -------------------------------------------------------------------------------- ------------- Total 374,648 -------------------------------------------------------------------------------- ------------- TRANSPORTATION--0.2% -------------------------------------------------------------------------------- 40,000 Kawasaki Kisen Kaisha Ltd. 147,603 -------------------------------------------------------------------------------- ------------- TOTAL JAPAN 4,667,434 -------------------------------------------------------------------------------- ------------- KOREA--0.1% -------------------------------------------------------------------------------- AUTOMOBILE--0.1% -------------------------------------------------------------------------------- 2,066 Hyundai Motor Service Co., Pfd. 50,173 -------------------------------------------------------------------------------- ------------- MEXICO--0.3% -------------------------------------------------------------------------------- CONSTRUCTION--0.1% -------------------------------------------------------------------------------- 11,000 Empresas ICA Sociedad Controladora S.A., ADR 59,663 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.1% -------------------------------------------------------------------------------- 3,700 Alfa, S.A. de C.V., Class A 54,031 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- MEXICO--CONTINUED -------------------------------------------------------------------------------- METALS & MINING--0.1% -------------------------------------------------------------------------------- 15,000 Industrias Penoles S.A. $ 63,190 -------------------------------------------------------------------------------- ------------- TOTAL MEXICO 176,884 -------------------------------------------------------------------------------- ------------- NETHERLANDS--1.0% -------------------------------------------------------------------------------- CONSUMER & RELATED--0.3% -------------------------------------------------------------------------------- 1,000 Heineken NV 209,279 -------------------------------------------------------------------------------- ------------- ELECTRONICS & ELECTRICAL--0.2% -------------------------------------------------------------------------------- 4,375 Philips Electronics 154,472 -------------------------------------------------------------------------------- ------------- INSURANCE--0.2% -------------------------------------------------------------------------------- 3,700 Aegon N.V. 176,201 -------------------------------------------------------------------------------- ------------- RETAIL--0.3% -------------------------------------------------------------------------------- 4,050 Ahold NV 199,723 -------------------------------------------------------------------------------- ------------- TOTAL NETHERLANDS 739,675 -------------------------------------------------------------------------------- ------------- PHILIPPINES--0.1% -------------------------------------------------------------------------------- BANKING--0.1% -------------------------------------------------------------------------------- 3,500 Metro Bank and Trust Co. 94,287 -------------------------------------------------------------------------------- ------------- SPAIN--0.1% -------------------------------------------------------------------------------- REAL ESTATE--0.1% -------------------------------------------------------------------------------- 6,000 Vallehermoso SA 108,491 -------------------------------------------------------------------------------- ------------- SWEDEN--0.6% -------------------------------------------------------------------------------- HOUSING & CONSTRUCTION--0.2% -------------------------------------------------------------------------------- 3,500 Svedala Industri 125,413 -------------------------------------------------------------------------------- ------------- INSURANCE--0.2% -------------------------------------------------------------------------------- 2,600 Scania AB, Class A 72,077 -------------------------------------------------------------------------------- 2,600 Scania AB, Class B 71,886 -------------------------------------------------------------------------------- ------------- Total 143,963 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- SWEDEN--CONTINUED -------------------------------------------------------------------------------- PHARMACEUTICALS--0.2% -------------------------------------------------------------------------------- 3,300 Astra AB, Class A $ 146,713 -------------------------------------------------------------------------------- ------------- TOTAL SWEDEN 416,089 -------------------------------------------------------------------------------- ------------- SWITZERLAND--0.6% -------------------------------------------------------------------------------- INSURANCE--0.1% -------------------------------------------------------------------------------- 170 Winterthur Schweizerische Versicherungs-Gesellschaft 106,661 -------------------------------------------------------------------------------- ------------- MACHINERY--0.2% -------------------------------------------------------------------------------- 95 BBC Brown Boveri 114,465 -------------------------------------------------------------------------------- ------------- MEDICAL PRODUCTS & RELATED--0.3% -------------------------------------------------------------------------------- 30 Roche Holding AG 235,946 -------------------------------------------------------------------------------- ------------- TOTAL SWITZERLAND 457,072 -------------------------------------------------------------------------------- ------------- UNITED KINGDOM--3.8% -------------------------------------------------------------------------------- AEROSPACE--0.3% -------------------------------------------------------------------------------- 14,128 British Aerospace PLC 185,134 -------------------------------------------------------------------------------- ------------- BANKING--0.4% -------------------------------------------------------------------------------- 15,915 Bank of Ireland 114,996 -------------------------------------------------------------------------------- 18,028 National Westminster Bank PLC 166,222 -------------------------------------------------------------------------------- ------------- Total 281,218 -------------------------------------------------------------------------------- ------------- CONSUMER & RELATED--0.3% -------------------------------------------------------------------------------- 23,400 Compass Group 192,681 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--1.3% -------------------------------------------------------------------------------- 60,000 Hanson PLC, ADR 907,500 -------------------------------------------------------------------------------- ------------- FOOD & BEVERAGE--0.2% -------------------------------------------------------------------------------- 14,300 Allied Domecq PLC 110,538 -------------------------------------------------------------------------------- ------------- HEALTH CARE--0.2% -------------------------------------------------------------------------------- 16,401 Smithkline Beecham Corp., Class A 173,935 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- UNITED KINGDOM--CONTINUED -------------------------------------------------------------------------------- MACHINERY--0.4% -------------------------------------------------------------------------------- 29,000 Chubb Security $ 166,107 -------------------------------------------------------------------------------- 8,800 Siebe PLC 113,792 -------------------------------------------------------------------------------- ------------- Total 279,899 -------------------------------------------------------------------------------- ------------- OIL RELATED--0.0% -------------------------------------------------------------------------------- 277 British Petroleum Co. PLC 2,500 -------------------------------------------------------------------------------- ------------- RETAIL--0.2% -------------------------------------------------------------------------------- 6,380 Thorn EMI 176,955 -------------------------------------------------------------------------------- ------------- TELECOMMUNICATIONS--0.3% -------------------------------------------------------------------------------- 27,500 Carlton Communications PLC 192,910 -------------------------------------------------------------------------------- ------------- TRANSPORTATION--0.2% -------------------------------------------------------------------------------- 51,000 British Airways Capital, Conv. Bond, 9.75%, 6/15/2005 170,565 -------------------------------------------------------------------------------- ------------- TOTAL UNITED KINGDOM 2,673,835 -------------------------------------------------------------------------------- ------------- TOTAL FOREIGN SECURITIES SECTOR (IDENTIFIED COST $13,419,834) 16,286,475 -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--9.4% ------------------------------------------------------------------------------------------------ ARGENTINA--0.3% -------------------------------------------------------------------------------- CONSUMER GOODS & RELATED--0.1% -------------------------------------------------------------------------------- 1,750 (a)Quilmes Industrial (Quinsa), Societe Ano, ADR 20,781 -------------------------------------------------------------------------------- 3,500 Quilmes Industrial SA 42,000 -------------------------------------------------------------------------------- ------------- Total 62,781 -------------------------------------------------------------------------------- ------------- UTILITIES & RELATED--0.2% -------------------------------------------------------------------------------- 19,176 Compania Naviera Perez Companc SA, Class B 119,286 -------------------------------------------------------------------------------- ------------- TOTAL ARGENTINA 182,067 -------------------------------------------------------------------------------- ------------- BRAZIL--1.1% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.5% -------------------------------------------------------------------------------- 7,837 Cia Acos Especiais Itabira-Acesita., ADR 58,777 -------------------------------------------------------------------------------- 3,207 Companhia Energetica de Minas Gerais, ADR 83,031 --------------------------------------------------------------------------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- BRAZIL--CONTINUED -------------------------------------------------------------------------------- BASIC INDUSTRY--CONTINUED -------------------------------------------------------------------------------- 7,400 Companhia Vale Do Rio Doce, ADR $ 135,365 -------------------------------------------------------------------------------- 2,000 Usiminas USI SD MG, Pfd. 22,990 -------------------------------------------------------------------------------- 6,600 Usinas Siderurgicas de Minas Gerais, ADR 75,834 -------------------------------------------------------------------------------- ------------- Total 375,997 -------------------------------------------------------------------------------- ------------- CAPITAL GOODS--0.1% -------------------------------------------------------------------------------- 7,481 (a)(b)Rhodia-Ster S.A., GDR 62,580 -------------------------------------------------------------------------------- ------------- INDUSTRIAL SERVICES--0.0% -------------------------------------------------------------------------------- 1,154,088 Cia Acos Especiais Itabira-Acesita., Pfd. 4,979 -------------------------------------------------------------------------------- ------------- RETAIL--0.1% -------------------------------------------------------------------------------- 8,000,000 (a)Lojas Arapua S.A., Preference 82,250 -------------------------------------------------------------------------------- ------------- TELECOMMUNICATIONS--0.4% -------------------------------------------------------------------------------- 5,450 Telecomunicacoes Brasileras, ADR 294,981 -------------------------------------------------------------------------------- ------------- TOTAL BRAZIL 820,787 -------------------------------------------------------------------------------- ------------- CHILE--0.2% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.1% -------------------------------------------------------------------------------- 17,000 Antofagasta Holdings PLC 89,568 -------------------------------------------------------------------------------- ------------- RETAIL & RELATED--0.1% -------------------------------------------------------------------------------- 3,200 (a)Santa Isabel S.A., ADR 92,400 -------------------------------------------------------------------------------- ------------- TOTAL CHILE 181,968 -------------------------------------------------------------------------------- ------------- COLOMBIA--0.2% -------------------------------------------------------------------------------- BANKING--0.1% -------------------------------------------------------------------------------- 3,000 Banco Industrial Colombiano, ADR 58,875 -------------------------------------------------------------------------------- ------------- BASIC INDUSTRY--0.1% -------------------------------------------------------------------------------- 3,500 Cementos Diamante S.A., GDR 68,250 -------------------------------------------------------------------------------- ------------- TOTAL COLOMBIA 127,125 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- ECUADOR--0.1% -------------------------------------------------------------------------------- CONSTRUCTION--0.1% -------------------------------------------------------------------------------- 514 (b)LA Cemento Nacional C.A., GDR $ 80,698 -------------------------------------------------------------------------------- ------------- HONG KONG--0.0% -------------------------------------------------------------------------------- MULTI-INDUSTRY--0.0% -------------------------------------------------------------------------------- 60,000 (a)(b)Star Paging International Holding, Ltd. Warrants, 12/31/1996 776 -------------------------------------------------------------------------------- ------------- HUNGARY--0.0% -------------------------------------------------------------------------------- CONSUMER GOODS & RELATED--0.0% -------------------------------------------------------------------------------- 2,100 (a)(b)Kekut Asvanyiz, GDR 14,858 -------------------------------------------------------------------------------- ------------- INDIA--0.5% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.1% -------------------------------------------------------------------------------- 5,040 Gujarat Ambuja Cements, GDR 58,565 -------------------------------------------------------------------------------- ------------- CONSUMER GOODS & RELATED--0.1% -------------------------------------------------------------------------------- 3,500 (a)(b)DCW, Ltd., GDR 16,625 -------------------------------------------------------------------------------- 7,700 (a)Dr. Reddy's Laboratories, GDR 73,150 -------------------------------------------------------------------------------- ------------- Total 89,775 -------------------------------------------------------------------------------- ------------- INVESTMENT COMPANIES--0.3% -------------------------------------------------------------------------------- 5,149 (a)IS Himalayan Fund N.V. 79,809 -------------------------------------------------------------------------------- 14,400 (a)Indian Opportunities Fund Ltd. 158,400 -------------------------------------------------------------------------------- ------------- Total 238,209 -------------------------------------------------------------------------------- ------------- TOTAL INDIA 386,549 -------------------------------------------------------------------------------- ------------- INDONESIA--0.7% -------------------------------------------------------------------------------- BANKING--0.1% -------------------------------------------------------------------------------- 78,750 PT Bank Dagang Nasional 78,463 -------------------------------------------------------------------------------- ------------- BASIC INDUSTRY--0.1% -------------------------------------------------------------------------------- 62,000 PT Gadjah Tunggal 36,533 -------------------------------------------------------------------------------- ------------- CAPITAL GOODS--0.2% -------------------------------------------------------------------------------- 3,100 (a)PT Indosat, ADR 108,113 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- INDONESIA--CONTINUED -------------------------------------------------------------------------------- CHEMICALS--0.0% -------------------------------------------------------------------------------- 34,000 Keramika Indonesia Associates $ 24,041 -------------------------------------------------------------------------------- ------------- CONSUMER GOODS & RELATED--0.0% -------------------------------------------------------------------------------- 35,000 (b)PT Concord Benefit Enterprise 14,624 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.3% -------------------------------------------------------------------------------- 60,000 (a)PT Andayani Megah, Foreign Shares 41,140 -------------------------------------------------------------------------------- 35,400 PT Bank International Indonesia 174,080 -------------------------------------------------------------------------------- ------------- Total 215,220 -------------------------------------------------------------------------------- ------------- TOTAL INDONESIA 476,994 -------------------------------------------------------------------------------- ------------- ISRAEL--0.1% -------------------------------------------------------------------------------- FINANCIAL SERVICES--0.1% -------------------------------------------------------------------------------- 8,600 (a)Ampal-American Israel Corp. Warrants, 01/31/1999 2,687 -------------------------------------------------------------------------------- 6,400 (a)Ampal-American Israel Corp., Class A 37,600 -------------------------------------------------------------------------------- ------------- Total 40,287 -------------------------------------------------------------------------------- ------------- TELECOMMUNICATIONS--0.0% -------------------------------------------------------------------------------- 1,075 Koor Industries Ltd., ADR 20,156 -------------------------------------------------------------------------------- ------------- TOTAL ISRAEL 60,443 -------------------------------------------------------------------------------- ------------- KOREA--0.8% -------------------------------------------------------------------------------- CAPITAL GOODS--0.3% -------------------------------------------------------------------------------- 6,336 (a)Anam Industrial Co., Ltd. 144,916 -------------------------------------------------------------------------------- 6,000 (a)(b)Daewoo Heavy Industries, Pfd. 42,480 -------------------------------------------------------------------------------- ------------- Total 187,396 -------------------------------------------------------------------------------- ------------- CONSTRUCTION & HOUSING--0.1% -------------------------------------------------------------------------------- 9,000 (a)Kumho Construction & Engineering Co., Pfd. 64,761 -------------------------------------------------------------------------------- ------------- ELECTRONICS & ELECTRICAL--0.0% -------------------------------------------------------------------------------- 14 (a)Samsung Electronics GDS--1/2 NV Com 1,047 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- KOREA--CONTINUED -------------------------------------------------------------------------------- TRANSPORTATION--0.1% -------------------------------------------------------------------------------- 2,283 (a)(b)Dong Bang Forwarding Co. $ 65,124 -------------------------------------------------------------------------------- ------------- UTILITIES & RELATED--0.3% -------------------------------------------------------------------------------- 3,200 (a)Korea Electric Power Corp. 135,278 -------------------------------------------------------------------------------- 2,239 (a)Yukong Ltd. 83,432 -------------------------------------------------------------------------------- ------------- Total 218,710 -------------------------------------------------------------------------------- ------------- TOTAL KOREA 537,038 -------------------------------------------------------------------------------- ------------- LUXEMBOURG--0.1% -------------------------------------------------------------------------------- INDUSTRIAL SERVICES--0.1% -------------------------------------------------------------------------------- 120,000 Siam Sindhorn, Conv. Bond, Series WW, 2.00%, 7/31/2000 99,600 -------------------------------------------------------------------------------- ------------- MALAYSIA--1.0% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.2% -------------------------------------------------------------------------------- 19,000 United Engineers Ltd. 130,309 -------------------------------------------------------------------------------- ------------- CONSUMER GOODS & RELATED--0.1% -------------------------------------------------------------------------------- 10,000 Edaran Otomobil Nasional 85,429 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.5% -------------------------------------------------------------------------------- 24,000 Commerce Asset Holdings Bhd 163,639 -------------------------------------------------------------------------------- 47,000 Renong Berhad 81,811 -------------------------------------------------------------------------------- 48,000 (a)Westmont Industries Berhad 103,959 -------------------------------------------------------------------------------- ------------- Total 349,409 -------------------------------------------------------------------------------- ------------- RETAIL--0.2% -------------------------------------------------------------------------------- 105,000 LARUT Consolidated Berhad 168,451 -------------------------------------------------------------------------------- ------------- TOTAL MALAYSIA 733,598 -------------------------------------------------------------------------------- ------------- MEXICO--0.8% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.0% -------------------------------------------------------------------------------- 35,200 (a)(b)Cemex SA, Class B, Warrants, 07/26/1996 369 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- MEXICO--CONTINUED -------------------------------------------------------------------------------- CONSUMER BASICS--0.0% -------------------------------------------------------------------------------- 83,000 (a)(b)Cifra SA de CV Warrants, 03/08/1996 $ 2,117 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.5% -------------------------------------------------------------------------------- 3,200 (a)(b)Ceteco Holdings NV, ADR 135,215 -------------------------------------------------------------------------------- 16,200 (a)(b)Grupo Carso SA de CV Warrants, 05/03/1996 486 -------------------------------------------------------------------------------- 4,900 (a)Grupo Carso SA de CV, ADR 74,936 -------------------------------------------------------------------------------- 38,000 Grupo Financiero Banamex, Class B 87,558 -------------------------------------------------------------------------------- 1,140 (a)Grupo Financiero Banamex, Class L 2,341 -------------------------------------------------------------------------------- 9,800 (a)Grupo Industrial Durango, S.A. de C.V. Sponsored ADR 75,950 -------------------------------------------------------------------------------- ------------- Total 376,486 -------------------------------------------------------------------------------- ------------- INDUSTRIAL & RELATED--0.3% -------------------------------------------------------------------------------- 11,000 Apasco SA de CV 59,663 -------------------------------------------------------------------------------- 18,700 Corporacion Industrial Sanluis, S.A. de C.V.--CPO 109,733 -------------------------------------------------------------------------------- 500 Corporacion Industrial Sanluis, S.A. de C.V., ADR 17,625 -------------------------------------------------------------------------------- ------------- Total 187,021 -------------------------------------------------------------------------------- ------------- TOTAL MEXICO 565,993 -------------------------------------------------------------------------------- ------------- NETHERLANDS--0.3% -------------------------------------------------------------------------------- FOOD & BEVERAGE--0.3% -------------------------------------------------------------------------------- 2,200 Nutricia Vereenigde Bedrijven N.V. 235,086 -------------------------------------------------------------------------------- ------------- INDUSTRIAL SERVICES--0.0% -------------------------------------------------------------------------------- 1,130 IS Himalayan Fund N.V. Warrants, 12/31/1996 429 -------------------------------------------------------------------------------- ------------- TOTAL NETHERLANDS 235,515 -------------------------------------------------------------------------------- ------------- PERU--0.2% -------------------------------------------------------------------------------- REAL ESTATE--0.1% -------------------------------------------------------------------------------- 260,000 (a)(b)Peru Real Estate S.A. 93,600 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- PERU--CONTINUED -------------------------------------------------------------------------------- TELECOMMUNICATIONS--0.1% -------------------------------------------------------------------------------- 41,275 Telefonica Del Peru CPT, Class B $ 92,283 -------------------------------------------------------------------------------- ------------- TOTAL PERU 185,883 -------------------------------------------------------------------------------- ------------- PHILIPPINES--0.1% -------------------------------------------------------------------------------- OIL RELATED--0.1% -------------------------------------------------------------------------------- 700,000 (a)Belle Corp. 102,981 -------------------------------------------------------------------------------- ------------- POLAND--0.7% -------------------------------------------------------------------------------- BANKING--0.3% -------------------------------------------------------------------------------- 5,310 Bank Rozwoju Eksportu S.A. 126,737 -------------------------------------------------------------------------------- 730 Bank Slaski S.A. 54,603 -------------------------------------------------------------------------------- ------------- Total 181,340 -------------------------------------------------------------------------------- ------------- BASIC INDUSTRY--0.1% -------------------------------------------------------------------------------- 12,824 (a)Mostostal Export 37,597 -------------------------------------------------------------------------------- ------------- CAPITAL GOODS--0.1% -------------------------------------------------------------------------------- 3,000 (a)Debica S.A. 71,039 -------------------------------------------------------------------------------- ------------- CONSUMER GOODS & RELATED--0.1% -------------------------------------------------------------------------------- 785 Zyweic Powowarskiew PLZ 64,913 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.1% -------------------------------------------------------------------------------- 12,000 Elektrim Spolka Akcyina S.A. 76,677 -------------------------------------------------------------------------------- ------------- TOTAL POLAND 431,566 -------------------------------------------------------------------------------- ------------- RUSSIA--0.1% -------------------------------------------------------------------------------- TELECOMMUNICATIONS--0.1% -------------------------------------------------------------------------------- 10,060 (a)Petersburg Long Distance, Inc. 50,300 -------------------------------------------------------------------------------- ------------- SINGAPORE--0.2% -------------------------------------------------------------------------------- BANKING--0.1% -------------------------------------------------------------------------------- 200 (a)Slovenia Kredit Bank 41,646 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- SINGAPORE--CONTINUED -------------------------------------------------------------------------------- FINANCIAL SERVICES--0.1% -------------------------------------------------------------------------------- 135,000 (b)China North Industries Investment Ltd. $ 78,300 -------------------------------------------------------------------------------- ------------- TOTAL SINGAPORE 119,946 -------------------------------------------------------------------------------- ------------- SOUTH AFRICA--0.9% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.1% -------------------------------------------------------------------------------- 9,000 Sasol Ltd. 95,000 -------------------------------------------------------------------------------- ------------- ENTERTAINMENT--0.1% -------------------------------------------------------------------------------- 61,000 Sun International (South Africa) Ltd. 76,815 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.2% -------------------------------------------------------------------------------- 6,000 Barlow Limited 69,097 -------------------------------------------------------------------------------- 310 (a)Dimension Data Holdings Ltd. 431 -------------------------------------------------------------------------------- 4,500 Free State Consolidated Gold Mines Ltd. 48,958 -------------------------------------------------------------------------------- 6,000 Malbak Limited 29,167 -------------------------------------------------------------------------------- ------------- Total 147,653 -------------------------------------------------------------------------------- ------------- INDUSTRIAL & RELATED--0.1% -------------------------------------------------------------------------------- 400 Anglo American Coal Corp. Ltd. 30,093 -------------------------------------------------------------------------------- 900 Anglo American Industrial Corp., Ltd. 41,042 -------------------------------------------------------------------------------- ------------- Total 71,135 -------------------------------------------------------------------------------- ------------- INSURANCE--0.1% -------------------------------------------------------------------------------- 25,000 LibLife Strategic Investments Ltd. 82,465 -------------------------------------------------------------------------------- ------------- PHARMACEUTICALS--0.1% -------------------------------------------------------------------------------- 3,900 South African Druggists Ltd. 37,014 -------------------------------------------------------------------------------- ------------- RETAIL--0.1% -------------------------------------------------------------------------------- 9,914 (a)JD Group, Ltd. 48,193 -------------------------------------------------------------------------------- ------------- TECHNOLOGY--0.1% -------------------------------------------------------------------------------- 5,300 Q Data Ltd. 67,477 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
VALUE IN U.S. SHARES DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- SOUTH AFRICA--CONTINUED -------------------------------------------------------------------------------- TELECOMMUNICATIONS--0.0% -------------------------------------------------------------------------------- 140,000 Telkom Sa Ltd., Deb., Series 7, 13%, 6/30/1996 $ 32,278 -------------------------------------------------------------------------------- ------------- TOTAL SOUTH AFRICA 658,030 -------------------------------------------------------------------------------- ------------- SRI LANKA--0.0% -------------------------------------------------------------------------------- FINANCIAL SERVICES--0.0% -------------------------------------------------------------------------------- 1,360 (a)Sri Lanka Growth Fund Warrants, 03/01/1998 272 -------------------------------------------------------------------------------- ------------- TAIWAN--0.0% -------------------------------------------------------------------------------- BASIC INDUSTRY--0.0% -------------------------------------------------------------------------------- 1,904 (a)Tuntex Distinct Corp., GDR 15,470 -------------------------------------------------------------------------------- ------------- THAILAND--0.6% -------------------------------------------------------------------------------- CONSUMER GOODS & RELATED--0.2% -------------------------------------------------------------------------------- 19,000 (a)Hana Microelectronics Co., Ltd. 109,133 -------------------------------------------------------------------------------- ------------- FINANCIAL SERVICES--0.1% -------------------------------------------------------------------------------- 40,000 MDX Public Co., Ltd.,--Foreign 62,588 -------------------------------------------------------------------------------- ------------- TRANSPORTATION--0.2% -------------------------------------------------------------------------------- 20,000 Precious Shipping, Ltd. 109,331 -------------------------------------------------------------------------------- ------------- UNASSIGNED--0.1% -------------------------------------------------------------------------------- 16,800 TPI Polene Co., Ltd. 92,503 -------------------------------------------------------------------------------- ------------- TOTAL THAILAND 373,555 -------------------------------------------------------------------------------- ------------- TURKEY--0.3% -------------------------------------------------------------------------------- BASIC GOODS--0.1% -------------------------------------------------------------------------------- 701,000 Eregli Demir Ve Celik Fabrikalari T.A.S. 76,358 -------------------------------------------------------------------------------- ------------- CONSUMER GOODS & RELATED--0.2% -------------------------------------------------------------------------------- 213 Koc Yatirim Ve Sanayi Mamulleri Pazarlama S.A. 53 -------------------------------------------------------------------------------- 99,600 Migros Turk 113,783 -------------------------------------------------------------------------------- ------------- Total 113,836 -------------------------------------------------------------------------------- ------------- TOTAL TURKEY 190,194 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
SHARES OR VALUE PRINCIPAL IN U.S. AMOUNT DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- EMERGING MARKETS SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- URUGUAY--0.1% -------------------------------------------------------------------------------- FINANCIAL SERVICES--0.1% -------------------------------------------------------------------------------- 4,200 (a)Banco Comercial S.A., GDR $ 64,050 -------------------------------------------------------------------------------- ------------- TOTAL EMERGING MARKETS SECTOR (IDENTIFIED COST $3,192,025) 6,696,256 -------------------------------------------------------------------------------- ------------- PRECIOUS METALS SECTOR/METAL MINING SECURITIES--1.4% ----------------------------------------------------------------------------------------------- CANADA--1.4% -------------------------------------------------------------------------------- 137,400 (a)Dayton Mining Corp. 961,800 -------------------------------------------------------------------------------- ------------- TOTAL PRECIOUS METALS SECTOR/METAL MINING SECURITIES (IDENTIFIED COST $755,789) 961,800 -------------------------------------------------------------------------------- ------------- U.S. FIXED INCOME SECURITIES SECTOR--6.7% ------------------------------------------------------------------------------------------------ GOVERNMENT/AGENCY--6.7% -------------------------------------------------------------------------------- $ 412,967 FNMA Pool 303630, 6.00%, 11/1/2002 399,670 -------------------------------------------------------------------------------- 496,776 GNMA Pool 352309, 6.50%, 3/15/2024 467,004 -------------------------------------------------------------------------------- 303,063 GNMA Pool 386475, 6.50%, 5/15/2024 284,900 -------------------------------------------------------------------------------- 320,000 United States Treasury Bond, 10.75%, 05/15/2003 393,900 -------------------------------------------------------------------------------- 350,000 United States Treasury Bond, 10.75%, 08/15/2005 187,362 -------------------------------------------------------------------------------- 375,000 United States Treasury Bond, 7.50%, 11/15/2024 396,210 -------------------------------------------------------------------------------- 700,000 United States Treasury Note, 5.125%, 11/30/1998 683,067 -------------------------------------------------------------------------------- 510,000 United States Treasury Note, 5.625%, 10/31/1997 508,088 -------------------------------------------------------------------------------- 130,000 United States Treasury Note, 5.75%, 10/31/2000 126,790 -------------------------------------------------------------------------------- 100,000 United States Treasury Note, 6.125%, 05/15/1998 100,125 -------------------------------------------------------------------------------- 400,000 United States Treasury Note, 6.25%, 02/15/2003 393,000 -------------------------------------------------------------------------------- 130,000 United States Treasury Note, 6.25%, 05/31/2000 129,431 -------------------------------------------------------------------------------- 160,000 United States Treasury Note, 7.125%, 09/30/1999 164,000 -------------------------------------------------------------------------------- 380,000 United States Treasury Note, 7.875%, 08/15/2001 403,988 -------------------------------------------------------------------------------- 350,000 United States Treasury Receipt IO Strip, 02/15/2005 194,594 -------------------------------------------------------------------------------- ------------- TOTAL U.S. FIXED INCOME SECURITIES SECTOR (IDENTIFIED COST $4,992,123) 4,832,129 -------------------------------------------------------------------------------- -------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
FOREIGN VALUE CURRENCY IN U.S. PAR AMOUNT DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN FIXED INCOME SECURITIES SECTOR--9.2% ----------------------------------------------------------------------------------------------- AUSTRALIA--0.2% -------------------------------------------------------------------------------- 150,000 Australian Government, Bond, 7.50%, 7/15/2005 $ 109,256 -------------------------------------------------------------------------------- ------------- DENMARK--0.8% -------------------------------------------------------------------------------- 3,310,000 Denmark--Bullet, Bond, 8.00%, 3/15/2006 591,560 -------------------------------------------------------------------------------- ------------- FRANCE--2.2% -------------------------------------------------------------------------------- 230,000 France O.A.T., Deb., 9.50%, 4/25/2000 320,292 -------------------------------------------------------------------------------- 5,100,000 French Treasury Bill, 5.75%, 3/12/1998 1,010,910 -------------------------------------------------------------------------------- 1,200,000 French Treasury Bill, 7.00%, 11/12/1999 246,827 -------------------------------------------------------------------------------- ------------- Total 1,578,029 -------------------------------------------------------------------------------- ------------- GERMANY--1.6% -------------------------------------------------------------------------------- 1,140,000 Deutschland Republic, Bond, 6.00%, 1/5/2006 727,235 -------------------------------------------------------------------------------- 550,000 Deutschland Republic, Deb., 6.25%, 1/4/2024 323,267 -------------------------------------------------------------------------------- 165,000 Germany (Fed Republic), 6.50%, 7/15/2003 111,013 -------------------------------------------------------------------------------- ------------- Total 1,161,515 -------------------------------------------------------------------------------- ------------- ITALY--1.1% -------------------------------------------------------------------------------- 880,000,000 Buoni Poliennali Del Tes, Deb., 10.5%, 4/15/1998 579,775 -------------------------------------------------------------------------------- 310,000,000 Italy (Republic of), Deb., 10.50%, 4/1/2005 208,605 -------------------------------------------------------------------------------- ------------- Total 788,380 -------------------------------------------------------------------------------- ------------- SPAIN--1.3% -------------------------------------------------------------------------------- 104,600,000 Bonos Y Oblig. Del Estado, 12.25%, 3/25/2000 926,927 -------------------------------------------------------------------------------- ------------- SWEDEN--0.4% -------------------------------------------------------------------------------- 1,600,000 Sweden (Kingdom of), 10.25%, 5/5/2000 259,467 -------------------------------------------------------------------------------- ------------- UNITED KINGDOM--1.6% -------------------------------------------------------------------------------- 280,000 UK Treasury, 8.00%, 12/7/2000 431,507 -------------------------------------------------------------------------------- 190,000 UK Treasury, 9.75%, 8/27/2002 314,438 --------------------------------------------------------------------------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
FOREIGN CURRENCY PAR AMOUNT OR CONTRACTS VALUE OR PRINCIPAL IN U.S. AMOUNT DOLLARS - -------------- -------------------------------------------------------------------------------- ------------- FOREIGN FIXED INCOME SECURITIES SECTOR--CONTINUED ----------------------------------------------------------------------------------------------- UNITED KINGDOM--CONTINUED -------------------------------------------------------------------------------- 280,000 United Kingdom Treasury, 6.75%, 11/26/2004 $ 390,147 -------------------------------------------------------------------------------- ------------- Total 1,136,092 -------------------------------------------------------------------------------- ------------- TOTAL FOREIGN FIXED INCOME SECURITIES SECTOR (IDENTIFIED COST $6,761,921) 6,551,226 -------------------------------------------------------------------------------- ------------- OPTIONS--0.0% ------------------------------------------------------------------------------------------------ 1,206,900 (a)Euro Style Put option on Denmark, expires 7/2/1996 strike at 1.49 (IDENTIFIED COST $11,892) 23,336 -------------------------------------------------------------------------------- ------------- (C)REPURCHASE AGREEMENT--4.6% ----------------------------------------------------------------------------------------------- 3,239,218 Merrill Lynch, Pierce, Fenner and Smith, Inc., 5.25%, dated 4/30/1996, due 5/1/1996 (AT AMORTIZED COST) 3,239,218 -------------------------------------------------------------------------------- ------------- TOTAL INVESTMENTS (IDENTIFIED COST $62,878,225)(D) $ 70,852,140 -------------------------------------------------------------------------------- -------------
(a) Non-income producing security. (b) Denotes a restricted security which is subject to restrictions on resale under Federal and International Securities laws. At the end of the period, these securities amounted to $607,852 which represents 0.9% of net assets. (c) The repurchase agreement is fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investment in the repurchase agreement is through participation in a joint account with other Federated funds. (d) The cost of investments for federal tax purposes amounts to $63,064,217. The net unrealized appreciation of investments on a federal tax basis amounts to $7,787,923 which is comprised of $10,608,516 appreciation and $2,820,593 depreciation at April 30, 1996. Note: The categories of investments are shown as a percentage of net assets ($71,181,571) at April 30, 1996. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- The following acronyms are used throughout this portfolio: ADR--American Depositary Receipt FNMA--Federal National Mortgage Association GDR--Global Depository Receipts GNMA--Government National Mortgage Association IO--Interest Only LTD--Limited PLC--Public Limited Company STRIP--Separate Trading of Registered Interest & Principal of Securities (See Notes which are an integral part of the Financial Statements) BLANCHARD GLOBAL GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 - -------------------------------------------------------------------------------- ASSETS: - -------------------------------------------------------------------------------------------------- Total investments in securities, at value (identified cost $62,878,225 and tax cost $63,064,217) $ 70,852,140 - -------------------------------------------------------------------------------------------------- Cash 1,035,794 - -------------------------------------------------------------------------------------------------- Cash denominated in foreign currencies (at cost, $4,280) 4,280 - -------------------------------------------------------------------------------------------------- Income receivable 350,548 - -------------------------------------------------------------------------------------------------- Receivable for investments sold 1,588,619 - -------------------------------------------------------------------------------------------------- Receivable for shares sold 56,200 - -------------------------------------------------------------------------------------------------- Net receivable for forward foreign currency exchange contracts sold 29,903 - -------------------------------------------------------------------------------------------------- ------------- Total assets 73,917,484 - -------------------------------------------------------------------------------------------------- LIABILITIES: - ----------------------------------------------------------------------------------- Payable for investments purchased $ 2,322,252 - ----------------------------------------------------------------------------------- Payable for shares redeemed 145,107 - ----------------------------------------------------------------------------------- Payable for foreign taxes withheld 9,368 - ----------------------------------------------------------------------------------- Net payable for forward foreign currency exchange contracts purchased 51,260 - ----------------------------------------------------------------------------------- Accrued expenses 207,926 - ----------------------------------------------------------------------------------- ------------- Total liabilities 2,735,913 - -------------------------------------------------------------------------------------------------- ------------- NET ASSETS FOR 6,171,216 shares outstanding $ 71,181,571 - -------------------------------------------------------------------------------------------------- ------------- NET ASSETS CONSIST OF: - -------------------------------------------------------------------------------------------------- Paid in capital $ 57,826,852 - -------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency 7,936,892 - -------------------------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions 5,518,509 - -------------------------------------------------------------------------------------------------- Distributions in excess of net investment income (100,682) - -------------------------------------------------------------------------------------------------- ------------- Total Net Assets $ 71,181,571 - -------------------------------------------------------------------------------------------------- ------------- NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE: - -------------------------------------------------------------------------------------------------- $71,181,571 / 6,171,216 shares outstanding $11.53 - -------------------------------------------------------------------------------------------------- -------------
(See Notes which are an integral part of the Financial Statements) BLANCHARD GLOBAL GROWTH FUND STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1996 - -------------------------------------------------------------------------------- INVESTMENT INCOME: - ------------------------------------------------------------------------------------------------------------------ Dividends (net of foreign taxes withheld of $48,141) $ 1,333,099 - --------------------------------------------------------------------------------------------------- Interest (net of foreign taxes withheld of $14,614) 953,991 - --------------------------------------------------------------------------------------------------- ------------- Total income 2,287,090 - --------------------------------------------------------------------------------------------------- EXPENSES: - --------------------------------------------------------------------------------------- Management fee $ 783,420 - --------------------------------------------------------------------------------------- Administrative personnel and services fee 70,488 - --------------------------------------------------------------------------------------- Custodian fees 129,589 - --------------------------------------------------------------------------------------- Transfer and dividend disbursing agent fees and expenses 165,518 - --------------------------------------------------------------------------------------- Directors'/Trustees' fees 19,217 - --------------------------------------------------------------------------------------- Auditing fees 37,322 - --------------------------------------------------------------------------------------- Legal fees 17,601 - --------------------------------------------------------------------------------------- Portfolio accounting fees 87,019 - --------------------------------------------------------------------------------------- Distribution services fee 586,707 - --------------------------------------------------------------------------------------- Share registration costs 12,884 - --------------------------------------------------------------------------------------- Printing and postage 78,742 - --------------------------------------------------------------------------------------- Insurance premiums 415 - --------------------------------------------------------------------------------------- Miscellaneous 2,308 - --------------------------------------------------------------------------------------- ---------- Total expenses 1,991,230 - --------------------------------------------------------------------------------------------------- ------------- Net investment income 295,860 - --------------------------------------------------------------------------------------------------- ------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY: - --------------------------------------------------------------------------------------------------- Net realized gain on investments and foreign currency transactions 8,019,815 - --------------------------------------------------------------------------------------------------- Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency 5,636,916 - --------------------------------------------------------------------------------------------------- ------------- Net realized and unrealized gain on investments and foreign currency 13,656,731 - --------------------------------------------------------------------------------------------------- ------------- Change in net assets resulting from operations $ 13,952,591 - --------------------------------------------------------------------------------------------------- -------------
(See Notes which are an integral part of the Financial Statements) BLANCHARD GLOBAL GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
YEAR ENDED APRIL 30, 1996 1995 INCREASE (DECREASE) IN NET ASSETS: - ----------------------------------------------------------------------------- OPERATIONS-- - ----------------------------------------------------------------------------- Net investment income $ 295,860 $ 745,393 - ----------------------------------------------------------------------------- Net realized gain (loss) on investments and foreign currency transactions ($5,881,028 net gain and $293,056 net loss, respectively, as computed for federal tax purposes) 8,019,815 (3,163,377) - ----------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency 5,636,916 786,906 - ----------------------------------------------------------------------------- ---------------- ---------------- Change in net assets resulting from operations 13,952,591 (1,631,078) - ----------------------------------------------------------------------------- ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS-- - ----------------------------------------------------------------------------- Distributions from net investment income (295,860) -- - ----------------------------------------------------------------------------- Distributions in excess of net investment income (274,732) -- - ----------------------------------------------------------------------------- Distributions in excess of net realized gains on investments and foreign currency transactions -- (2,156,307) - ----------------------------------------------------------------------------- ---------------- ---------------- Change in net assets resulting from distributions to shareholders (570,592) (2,156,307) - ----------------------------------------------------------------------------- ---------------- ---------------- SHARE TRANSACTIONS-- - ----------------------------------------------------------------------------- Proceeds from sale of shares 5,765,409 17,005,687 - ----------------------------------------------------------------------------- Net asset value of shares issued to shareholders in payment of distributions declared 548,261 2,049,709 - ----------------------------------------------------------------------------- Cost of shares redeemed (35,601,975) (37,985,576) - ----------------------------------------------------------------------------- ---------------- ---------------- Change in net assets resulting from share transactions (29,288,305) (18,930,180) - ----------------------------------------------------------------------------- ---------------- ---------------- Change in net assets (15,906,306) (22,717,565) - ----------------------------------------------------------------------------- NET ASSETS: - ----------------------------------------------------------------------------- Beginning of period 87,087,877 109,805,442 - ----------------------------------------------------------------------------- ---------------- ---------------- End of period $ 71,181,571 $ 87,087,877 - ----------------------------------------------------------------------------- ---------------- ----------------
(See Notes which are an integral part of the Financial Statements) BLANCHARD GLOBAL GROWTH FUND FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
YEAR ENDED APRIL 30, 1996 1995 1994 1993 1992 1991 1990 1989 1988 NET ASSET VALUE, BEGINNING OF PERIOD $ 9.71 $ 10.04 $ 10.00 $ 9.92 $ 9.64 $ 9.62 $ 10.11 $ 9.68 $ 10.51 - ------------------------------ INCOME FROM INVESTMENT OPERATIONS - ------------------------------ Net investment income 0.04 0.08 0.03 0.25 0.33 0.30 0.30 0.22 0.14 - ------------------------------ Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.86 (0.19) 1.29 0.32 0.26 0.14 0.09 0.49 (0.21) - ------------------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- Total from investment operations 1.90 (0.11) 1.32 0.57 0.59 0.44 0.39 0.71 (0.07) - ------------------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- LESS DISTRIBUTIONS - ------------------------------ Distributions from net investment income (0.04) -- -- (0.30) (0.31) (0.21) (0.38) (0.10) (0.12) - ------------------------------ Distributions in excess of net investment income(b) (0.04) -- -- -- -- -- -- -- -- - ------------------------------ Distributions from net realized gains and foreign currency transactions -- -- (1.28) (0.19) -- (0.21) (0.50) (0.18) (0.64) - ------------------------------ Distributions in excess of net realized gains and foreign currency transactions(b) -- (0.22) -- -- -- -- -- -- -- - ------------------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- Total distributions (0.08) (0.22) (1.28) (0.49) (0.31) (0.42) (0.88) (0.28) (0.76) - ------------------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 11.53 $ 9.71 $ 10.04 $ 10.00 $ 9.92 $ 9.64 $ 9.62 $ 10.11 $ 9.68 - ------------------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- TOTAL RETURN(C) 19.68% (1.04%) 12.91% 6.08% 6.24% 4.61% 3.74% 7.54% (0.57%) - ------------------------------ RATIOS TO AVERAGE NET ASSETS - ------------------------------ Expenses 2.54% 2.51% 2.61% 2.40% 2.31% 2.36% 2.28% 2.29% 2.28% - ------------------------------ Net investment income 0.38% 0.76% 0.67% 1.72% 2.31% 2.84% 2.86% 2.27% 1.42% - ------------------------------ SUPPLEMENTAL DATA - ------------------------------ Net assets, end of period (000 omitted) $71,182 $87,088 $109,805 $84,780 $128,047 $193,593 $233,300 $244,048 $246,569 - ------------------------------ Portfolio turnover 91% 221% 166% 138% 109% 78% 88% 85% 120% - ------------------------------ 1987(A) NET ASSET VALUE, BEGINNING OF PERIOD $ 8.00 - ------------------------------ INCOME FROM INVESTMENT OPERATIONS - ------------------------------ Net investment income 0.01 - ------------------------------ Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.50 - ------------------------------ ----------- Total from investment operations 2.51 - ------------------------------ ----------- LESS DISTRIBUTIONS - ------------------------------ Distributions from net investment income -- - ------------------------------ Distributions in excess of net investment income(b) -- - ------------------------------ Distributions from net realized gains and foreign currency transactions -- - ------------------------------ Distributions in excess of net realized gains and foreign currency transactions(b) -- - ------------------------------ ----------- Total distributions -- - ------------------------------ ----------- NET ASSET VALUE, END OF PERIOD $ 10.51 - ------------------------------ ----------- TOTAL RETURN(C) 31.38% - ------------------------------ RATIOS TO AVERAGE NET ASSETS - ------------------------------ Expenses 3.10% - ------------------------------ Net investment income 0.34%* - ------------------------------ SUPPLEMENTAL DATA - ------------------------------ Net assets, end of period (000 omitted) $149,018 - ------------------------------ Portfolio turnover 70% - ------------------------------
* Computed on an annualized basis. (a) Represents period from June 1, 1986 (commencement of the Fund's operations) to April 30, 1987. (b) Distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These distributions do not represent a return of capital for federal income tax purposes. (c) Based on net asset value. (See Notes which are an integral part of the Financial Statements) BLANCHARD GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS APRIL 30, 1996 - -------------------------------------------------------------------------------- (1) ORGANIZATION Blanchard Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Trust consists of eight portfolios. The financial statements included herein are only those of Blanchard Global Growth Fund (the "Fund"), a non-diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund's investment objective is long-term capital growth. (2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. INVESTMENT VALUATIONS--U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Foreign government and corporate bonds are valued at the last sales price reported on a national exchange. If the last sales price is not available the securities are valued at the mean of the latest bid and ask price as furnished by an independent pricing service. Listed foreign and domestic equity securities are valued at the last sale price reported on a national securities exchange. Short-term foreign and domestic securities are valued at the prices provided by an independent pricing service. However, short-term foreign and domestic securities with remaining maturities of sixty days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in open-end regulated investment companies are valued at net asset value. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Fund's pricing committee. REPURCHASE AGREEMENTS--It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement transaction. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Certain dividends from foreign securities may be recorded after the ex-dividend date based upon when information becomes available to the Fund. Distributions in excess of net investment income were the result of certain book and tax timing differences. These distributions do not represent a return of capital for federal income tax purposes. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for foreign currency transactions, options, passive foreign investment company adjustments, and forward contracts. The following reclassifications have been made to the financial statements.
INCREASE (DECREASE) UNDISTRIBUTED NET INVESTMENT ACCUMULATED INCOME/ACCUMULATED NET REALIZED DISTRIBUTIONS IN EXCESS OF PAID-IN CAPITAL GAIN/LOSS NET INVESTMENT INCOME $(126,092) $ 1,596,742 $ (1,470,650)
Net investment income, net realized gains/losses, and net assets were not affected by this reclassification. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provisions for federal tax are necessary. Withholding taxes on foreign interest and dividends have been provided for in accordance with the Fund's understanding of the applicable country's tax rules and rates. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. CONCENTRATION OF CREDIT RISK--The Fund invests in securities of non-U.S. issuers. The political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations. Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings. FOREIGN CURRENCY COMMITMENTS--The Fund may enter into foreign currency commitments for the delayed delivery of securities or foreign currency exchange transactions. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge the fund's securities against currency fluctuations. Risks may arise upon entering these transactions from the potential inability of counter-parts to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purpose as unrealized until the settlement date. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- At April 30, 1996, the Fund had outstanding foreign currency commitments as set forth below:
CONTRACTS UNREALIZED SETTLEMENT CONTRACTS TO IN EXCHANGE AT APPRECIATION DATE DELIVER/RECEIVE FOR VALUE (DEPRECIATION) CONTRACTS PURCHASED French Franc 4/30/96 1,133,013 220,968 219,258 (1,710) - --------------------------- Pound Sterling 5/1/96 100,313 151,223 151,007 (216) - --------------------------- Pound Sterling 5/7/96 76,506 115,486 115,168 (318) - --------------------------- Austrian Schilling 5/15/96 1,241,000 123,606 115,401 (8,205) - --------------------------- Austrian Schilling 5/15/96 1,186,000 114,556 110,286 (4,270) - --------------------------- Australian Dollar 5/16/96 87,000 65,362 68,277 2,915 - --------------------------- Canadian Dollar 6/18/96 793,000 579,678 582,941 3,263 - --------------------------- Deutsche Mark 5/20/96 880,000 584,329 575,475 (8,854) - --------------------------- Deutsche Mark 5/20/96 1,537,000 1,020,991 1,005,120 (15,871) - --------------------------- Deutsche Mark 5/20/96 92,000 60,033 60,164 131 - --------------------------- Danish Krone 5/13/96 1,248,000 216,272 211,582 (4,690) - --------------------------- Danish Krone 5/13/96 1,575,000 271,941 267,002 (4,919) - --------------------------- Spanish Peseta 7/11/96 42,660,000 342,830 334,002 (8,828) - --------------------------- Spanish Peseta 7/11/96 12,500,000 99,000 97,867 (1,133) - --------------------------- Spanish Peseta 7/11/96 16,593,000 131,201 129,913 (1,288) - --------------------------- French Franc 6/17/96 3,773,000 741,257 731,705 (9,552) - --------------------------- French Franc 6/17/96 2,719,000 532,084 527,302 (4,782) - --------------------------- Pound Sterling 7/9/96 142,000 216,266 213,528 (2,738) - --------------------------- Pound Sterling 7/9/96 105,000 159,148 157,890 (1,258) - --------------------------- Italian Lira 7/19/96 1,422,755,000 896,675 903,945 7,270 - --------------------------- Japanese Yen 5/9/96 92,926,000 867,154 889,483 22,329 - --------------------------- Swedish Krona 6/11/96 60,000 8,995 8,835 (160) - --------------------------- European Currency Unit 5/13/96 277,000 348,710 340,334 (8,376) - --------------------------- --------------- ------------ ----------------- $ 7,867,765 $ 7,816,505 $ (51,260) --------------- ------------ -----------------
BLANCHARD GLOBAL GROWTH FUND - --------------------------------------------------------------------------------
CONTRACTS UNREALIZED SETTLEMENT CONTRACTS TO IN EXCHANGE AT APPRECIATION DATE DELIVER/RECEIVE FOR VALUE (DEPRECIATION) CONTRACTS SOLD Australian Dollar 5/6/96 148,727 $ 116,751 $ 116,833 $ (82) - ------------------------- Deutsche Mark 4/30/96 91,914 59,898 60,039 (141) - ------------------------- French Franc 4/30/96 496,715 97,481 96,123 1,358 - ------------------------- Japanese Yen 5/7/96 9,709,211 92,363 92,818 (455) - ------------------------- South African Rand 5/9/96 146,021 33,460 33,801 (341) - ------------------------- Austrian Schilling 5/15/96 1,186,000 120,528 110,285 10,243 - ------------------------- Canadian Dollar 6/18/96 280,000 204,768 205,830 (1,062) - ------------------------- Deutsche Mark 5/20/96 3,066,000 2,036,898 2,005,009 31,889 - ------------------------- Deutsche Mark 5/20/96 1,128,000 749,303 737,656 11,647 - ------------------------- Danish Krone 5/13/96 1,364,000 238,837 231,248 7,589 - ------------------------- Danish Krone 5/13/96 2,043,000 357,762 346,364 11,398 - ------------------------- Spanish Peseta 7/11/96 144,622,000 1,151,999 1,132,302 19,697 - ------------------------- French Franc 6/17/96 5,457,000 1,074,213 1,058,288 15,925 - ------------------------- French Franc 6/17/96 5,230,000 1,023,463 1,014,264 9,199 - ------------------------- Pound Sterling 7/9/96 347,000 528,481 521,790 6,691 - ------------------------- Pound Sterling 7/9/96 245,000 370,262 368,411 1,851 - ------------------------- Pound Sterling 7/9/96 100,000 150,590 150,372 218 - ------------------------- Italian Lira 7/19/96 1,185,178,000 744,085 753,002 (8,917) - ------------------------- Japanese Yen 7/9/96 195,580,000 1,842,487 1,887,448 (44,961) - ------------------------- Japanese Yen 7/9/96 211,478,800 1,991,326 2,040,879 (49,553) - ------------------------- Swedish Krona 6/11/96 993,000 147,231 146,220 1,011 - ------------------------- Swedish Krona 6/11/96 954,000 141,093 140,477 616 - ------------------------- European Currency Unit 5/13/96 277,000 346,416 340,333 6,083 - ------------------------- --------------- ------------- ----------------- $ 13,619,695 $ 13,589,792 $ 29,903 --------------- ------------- -----------------
OPTIONS CONTRACTS--The Fund may write option contracts. A written option obligates the Fund to deliver (a call), or to receive (a put), the contract amount upon exercise by the holder of the option. The value of the option contract is recorded as a liability and unrealized gain or loss is measured by the difference between the current value and the premium received. For the period ended April 30, 1996, the Fund had a realized loss of $89,540 on written options. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- The following is a summary of the Fund's written option activity:
NUMBER OF AGGREGATE CONTRACTS CONTRACTS FACE VALUE Outstanding at April 30, 1995 -- $ -- - ----------------------------------------------------------------------------------- Contracts opened 1,932,125 11,065 - ----------------------------------------------------------------------------------- Contracts closed 1,932,125 11,065 - ----------------------------------------------------------------------------------- ------------- ------------- Outstanding at April 30, 1996 -- $ -- - ----------------------------------------------------------------------------------- ------------- -------------
The Funds may purchase put options on foreign currencies to increase a Fund's gross income and for the purpose of protecting against declines in the U.S. dollar value of foreign currency denominated portfolio securities and against increases in the U.S. dollar cost of such securities to be acquired. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is execised. Additionally, the Fund bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put options purchased are accounted for in the same manner as portfolio securities. FOREIGN CURRENCY TRANSLATION--The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. Differences between income and expense amounts recorded and collected or paid are adjusted when reported by the custodian bank. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. RESTRICTED SECURITIES--Restricted securities are securities that may only be resold upon registration under federal or international securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Trustees. The Fund will not incur any registration costs upon such resales. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- Additional information on each restricted security held at April 30, 1996 is as follows:
Security Acquisition Date(s) Acquisition Cost Cemex SA, Class B, Warrants 9/18/95 $ 84,499 Ceteco Holdings NV, ADR 7/1/94-8/18/94 74,423 China North Industries Investment Ltd. 10/3/94 140,576 Cifra SA De CV Warrants 8/3/94 64,989 Daewoo Heavy Industries, Pfd. 9/15/95 49,952 DCW, Ltd., GDR 10/24/94-10/27/94 71,500 Dong Bang Forwarding Co. 2/3/95-5/29/95 74,380 Grupo Carso SA de CV Warrants 4/15/95-9/15/94 43,548 Kekut Asranyiz, GDR 9/18/95 110,580 LA Cemento Nacional C.A., GDR 9/24/94 91,503 Peru Real Estate S.A. 3/15/95-4/19/95 198,449 PT Concord Benefit Enterprise 9/19/95 57,798 Rhodia-Ster S.A. 12/20/94-9/25/95 91,642 Star Paging International Holding, Ltd. Warrants 9/19/95 3,877
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 amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. OTHER--Investment transactions are accounted for on the trade date. (3) SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in shares were as follows:
YEAR ENDED APRIL 30, 1996 1995 Shares sold 559,635 1,720,511 - ----------------------------------------------------------------------------- Shares issued to shareholders in payment of distributions declared 52,311 219,892 - ----------------------------------------------------------------------------- Shares redeemed (3,413,086) (3,905,000) - ----------------------------------------------------------------------------- ---------------- ---------------- Net change resulting from share transactions (2,801,140) (1,964,993) - ----------------------------------------------------------------------------- ---------------- ----------------
BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- (4) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEE--Virtus Capital Management, Inc., the Fund's manager, (the "Manager"), receives for its services an annual management fee equal to 1.00% of the Fund's first $150 million of average daily net assets, 0.875% of the Fund's average daily net assets in excess of $150 million but not exceeding $300 million and 0.75% of the Fund's average daily net assets in excess of $300 million. Virtus Capital Management Inc. became the Fund's manager on July 12, 1995. Prior to July 12, 1995, Sheffield Management Company served as the Fund's investment adviser and received for its services an annual management fee equal to 1.00% of the Fund's first $150 million of average daily net assets, 0.875% of the Fund's average daily net assets in excess of $150 million but not exceeding $300 million and 0.75% of the Fund's average daily net assets in excess of $300 million. For the period ended April 30, 1996, the managers earned fees as follows:
AMOUNT OF MANAGER NAME FEE EARNED Sheffield Management Company $ 171,279 - ---------------------------------------------------------------------------------------------- Virtus Capital Management Inc. $ 612,141 - -----------------------------------------------------------------------------------------------
Under the terms of a sub-advisory agreement between the Manager and Shuffro Rose & Ehrman (U.S. Equity Sector), Fiduciary Trust International, Inc. (Foreign Equities Sector and Foreign Fixed Income Sector), Investment Advisors, Inc. (U.S. Fixed Income Sector), Cavelti Capital Management, Ltd. (Precious Metals Securities and Bullion Sector), and Martin Currie Inc. (Emerging Markets Sector), (the "Portfolio Advisers"). The Portfolio Advisers receive an annual fee from the Adviser equal to approximately 35% of the advisory fee paid to the Manager by the Fund. As of May 24, 1996, Mellon Capital Management Corp. became the Fund's sole sub-advisor. For the year ended April 30, 1996, the Fund paid brokerage commissions of $40,660 to Shufro, Rose and Ehrman. ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund with certain administrative personnel and services. The fee paid to FAS is based on the level of average aggregate net assets of the Trust for the period. FAS may voluntarily choose to waive a portion of its fee. DISTRIBUTION SERVICES FEE--The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will reimburse Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Fund shares. The Plan provides that the Fund may incur distribution expenses up to 0.75% of the average daily net assets of the Fund, annually, to reimburse FSC. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- FSC became the Fund's principal distributor on July 12, 1995. Prior to July 12, 1995. Sheffield Investments, Inc. served as the Funds principal distributor and received for its services an annual distribution fee equal to 0.75% of the Fund's average daily net assets.
AMOUNT OF DISTRIBUTOR NAME FEE EARNED Sheffield Investments, Inc. $ 128,620 - --------------------------------------------------------------------------------------------------- Federated Securities Corp. 458,087 - ---------------------------------------------------------------------------------------------------
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--Federated Services Company ("FServ"), through its subsidiary, Federated Shareholder Services Company serves as transfer and dividend disbursing agent for the Fund. The fee paid to FServ is based on the size, type, and number of accounts and transactions made by shareholders. FServ became the Fund's transfer agent on October 15, 1995. Prior to October 15, 1995, United States Trust Company of New York served as the Fund's transfer agent for which it received a fee. For the year ended April 30, 1996, the transfer agents earned fees as follows:
AMOUNT OF TRANSFER AGENT FEE EARNED United States Trust Company of New York $ 147,968 - --------------------------------------------------------------------------------------------------- Federated Services Company $ 17,550 - ---------------------------------------------------------------------------------------------------
PORTFOLIO ACCOUNTING FEES--FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. FServ became the Fund's portfolio accountant on October 15, 1995. Prior to October 15, 1995, Mutual Fund Services Company served as the Fund's portfolio accountant for which it received a fee. For the year ended April 30, 1996, the portfolio accountants earned fees as follows:
AMOUNT OF PORTFOLIO ACCOUNTANT FEE EARNED Mutual Funds Services Company $ 47,045 - --------------------------------------------------------------------------------------------------- Federated Services Company $ 39,974 - ---------------------------------------------------------------------------------------------------
CUSTODIAN FEES--Signet Trust Co. is the Fund's custodian. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses. Signet Trust Company became the Fund's custodian on October 15, 1995. Prior to October 15, 1995, United States Trust Company of New York served as the Fund's custodian for which it received a fee. BLANCHARD GLOBAL GROWTH FUND - -------------------------------------------------------------------------------- For the year ended April 30, 1996, the custodians earned fees as follows:
AMOUNT OF CUSTODIAN FEE EARNED United States Trust Company of New York $ 94,981 - --------------------------------------------------------------------------------------------------- Signet Trust Company $ 34,608 - ---------------------------------------------------------------------------------------------------
DIRECTORS'/TRUSTEES' FEES--Prior to the acquisition of the Sheffield Management Company by Virtus Capital Management, Inc., the independent directors/trustees for the Trust participated in an unfunded noncontributory pension plan (the "Plan") covering all independent directors/trustees of the Trust who served as an independent director/trustee for at least five years at the time of retirement. Benefits under this plan were based on an annual amount equal to 75% of the directors/ trustees fees at the time of retirement, plus 5% for each year of service in excess of five years of service but not in excess of ten years of service. The net pension expense included in Directors'/ Trustees' Fees in the Statement of Operations for the year ended April 30, 1996 was $15,542. GENERAL--Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. (5) INVESTMENT TRANSACTIONS Purchases and sales of investments, excluding short-term securities, for the period ended April 30, 1996, were as follows: - -------------------------------------------------------------------------------------------------- PURCHASES $ 69,972,176 - -------------------------------------------------------------------------------------------------- -------------- SALES $ 108,282,076 - -------------------------------------------------------------------------------------------------- --------------
INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- To the Board of Trustees of BLANCHARD FUNDS and the Shareholders of BLANCHARD GLOBAL GROWTH FUND: We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Blanchard Global Growth Fund as of April 30, 1996, and the related statements of operations and changes in net assets, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statement of changes in net assets for the year ended April 30, 1995 and the financial highlights for the nine years in the period ended April 30, 1995 were audited by other auditors, whose reports thereon dated June 20, 1995, expressed an unqualified opinion. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of the securities owned as of April 30, 1996 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 1996 financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Blanchard Global Growth Fund as of April 30, 1996, the results of its operations, the changes in its net assets and its financial highlights for the year then ended in conformity with generally accepted accounting principles. DELOITTE & TOUCHE LLP Pittsburgh, Pennsylvania June 19, 1996 TRUSTEES OFFICERS - -------------------------------------------------------------------------------- John F. Donahue John F. Donahue Thomas G. Bigley Chairman John T. Conroy, Jr. Edward C. Gonzales William J. Copeland President and Treasurer James E. Dowd J. Christopher Donahue Lawrence D. Ellis, M.D. Executive Vice President Edward L. Flaherty, Jr. John W. McGonigle Edward C. Gonzales Executive Vice President and Secretary Peter E. Madden Joseph S. Machi Gregor F. Meyer Vice President and Assistant Treasurer John E. Murray, Jr. Richard B. Fisher Wesley W. Posvar Vice President Marjorie P. Smuts C. Grant Anderson Assistant Secretary
This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contain facts concerning its objective and policies, management fees, expenses and other information. [This Page Intentionally Left Blank] Portfolio Adviser Mellon Capital Management Corp.* Blanchard Global Growth Fund *Effective May 28, 1996. The Blanchard Group of Funds are available through Signet Financial Services, Inc., and are advised by Virtus Capital Management, Inc., an affiliate of Signet Financial Services, Inc. Investment products available through Signet Financial Services, Inc., are not deposits, obligations of, or guaranteed by Signet Bank, Signet Financial Services, Inc., any bank or other financial institution, and are not insured by the FDIC or any Federal Agency. In addition, they involve risk, including possible loss of principal invested. Federated Securities Corp. is the distributor of the Fund. (2021) CUSIP 093265106 G01684-01 (6/96) Blanchard Global Growth Fund Annual Report April 30, 1996 Managed by: Virtus Capital Management -----END PRIVACY-ENHANCED MESSAGE-----