-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IdFSF6q6XuXgkL4SVmRyfzZ1xU/rkAoKtI3r9mwGvq4qzMsJ/olH3k2jWEkeRcq4 6IBTjBiABS7KPFxmwC2OpA== 0000950007-95-000090.txt : 199507050000950007-95-000090.hdr.sgml : 19950705 ACCESSION NUMBER: 0000950007-95-000090 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950703 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: 95551850 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 ANNUAL REPORT Dear Shareholders, Enclosed please find the Annual Report for your Blanchard Global Growth Fund for the fiscal year ending April 30, 1995. As a global asset allocation manager, we can almost always find some market in the world that is acting well. In 1994, as a result of an increasingly globalized economy, this was not the case, as almost all worldwide markets were in a state of flux. As the fiscal year progressed, we made a defensive allocation to cash, so that in the third quarter of 1994 we held 30% of the Fund's portfolio in cash while waiting for markets to calm and for opportunities to appear. We saw such an opportunity materialize early in 1995 and, in February and March, redeployed much of our cash into the U.S. stock market. This brought the U.S. equity position up to 50%, which is close to the maximum that we can hold. With the rally we have had so far this year in U.S. equities, this has worked out well for us. Our second largest position has been in foreign equity markets, though we (over, please) The following information was represented as a line graph The Value of a $10,000 Investment in the Blanchard Global Growth Fund inception 6/1/86 through 4/30/95 as compared to the Standard & Poor's 500 for the same period ----------------------------------- Avg. Annual Returns through 4/30/95 Blanchard Global Growth Fund* ----------------------------------- 1 year -1.04% ----------------------------------- 5 year 5.67% ----------------------------------- since inception 7.59% -----------------------------------
FYE 4/30/87 FYE 4/30/88 FYE 4/30/89 FYE 4/30/90 FYE 4/30/91 FYE 4/30/92 FYE 4/30/93 GGF 31.38% -0.57% 7.54% 3.74% 4.61% 6.24% 6.08% S&P 500 18.10% -6.40% 22.80% 10.50% 17.60% 14.00% 6.60% $9,925 $13,039 $12,965 $13,943 $14,464 $15,131 $16.075 $17,053 $10,000 $11,810 $11,054 $13,575 $15,000 $17,640 $20,109 $21,437
Reflects deduction of $75 acct opening fee Blanchard Standard Global & Poor's Growth Fund 500(D) *The average annual returns quoted above do not reflect the deduction of the account opening fee and assume reinvestment of distributions. If fee was 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. (D)Source: Standard & Poor's 500 is an unmanaged composite index of the U.S. Stock Market performance. ^Reflects deduction of the one-time $75 account opening fee. This chart is for comparative purposes only and is not intended to reflect on future performance of the BGGF or the index. are still a bit early on these investments, as the weak dollar has hurt overseas markets by suppressing exports in Europe and Japan. Even so, we are maintaining our exposure to foreign markets as we expect they will outperform the U.S. stock market in the second half of the year. During 1994, our allocation to the precious metals sector was minimal. We have only recently begun moving into these markets to any degree. Again, while we may be a bit early on this allocation, we are comfortable taking a position at this level due to the extremely favorable supply and demand equation in gold markets. In 1994, in light of the Fed's aggressive series of interest rate increases, we made substantial reductions in our bond holdings, both in the U.S. and abroad. While we are not planning to move heavily back into bonds at any time soon, if we were to do so, it would most likely be in foreign bonds as we believe they currently present a greater opportunity than U.S. issues. To sum up, we believe that the global economy is currently in a sustained growth phase. As a result of this view, we have used the Fund's diversification and flexibility to move out of cash and back into equities, positioning the portfolio to seek a higher level of growth. With approximately 80% of the portfolio in a combination of U.S. and foreign stocks, we are well positioned to take advantage of such a growth scenario. Sincerely, JB:ml Jeremy Biggs Chief Investment Officer Fiduciary Trust International Chief Asset Allocation Strategist of the Blanchard Global Growth Fund Distributed by Sheffield Investments, Inc. (1551) 00ARSL0695 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS April 30, 1995 (Left Column) Shares Value ------ ----- U.S. EQUITY SECURITIES SECTOR (49.58%) Aerospace (0.84%) *Coltec Industries ............................. 40,000 $ 730,000 ----------- Automotive & Related (3.24%) Chevron Corp. ................................. 12,000 568,500 Chrysler Corp. ................................ 20,000 862,500 Cummins Engine Company Inc. ........................................ 15,000 671,250 Harley Davidson, Inc. ......................... 30,000 716,250 ----------- 2,818,500 ----------- Banking (4.03%) Citicorp ...................................... 25,000 1,159,375 First Tennessee National Corp. ................ 10,000 425,000 Nationsbank Corp. ............................. 20,000 1,000,000 Provident Bancorp ............................. 15,000 506,250 UJB Financial Corp. ........................... 15,000 410,625 ----------- 3,501,250 ----------- Broadcast, Radio & TV (0.36%) Comcast Corp. Class A Special ..................................... 20,000 315,000 ----------- Chemicals & Related (4.91%) EI duPont de Nemours & Co. .................... 17,000 1,119,875 Mallinckrodt Group Inc. ....................... 30,000 1,080,000 Monsanto Co. .................................. 10,000 832,500 Morton International .......................... 40,000 1,240,000 ----------- 4,272,375 ----------- Consumer & Related (7.03%) Craftmade International ....................... 10,000 82,500 Eastman Kodak Co. ............................. 30,000 1,725,000 Edison Brothers Stores Inc. ................... 70,000 1,050,000 Home Depot .................................... 25,000 1,043,750 Lancaster Colony Corp. ........................ 20,000 695,000 Mattel, Inc. .................................. 35,000 831,250 Sara Lee Corp. ................................ 25,000 696,875 ----------- 6,124,375 ----------- Electronics & Electrical (5.38%) Avnet, Inc. ................................... 25,000 1,112,500 Baker Hughes Inc. ............................. 30,000 675,000 General Electric Co. .......................... 20,000 1,120,000 Intel, Inc. ................................... 10,000 1,023,750 Mark IV Industries, Inc. ...................... 42,000 756,000 ----------- 4,687,250 ----------- Energy Related (4.44%) Brush Wellman Inc. ............................ 20,000 395,000 Burlington Resources Inc. ..................... 30,000 1,173,750 Cooper Industries, Inc. ....................... 13,000 507,000 El Paso Natural Gas ........................... 30,000 877,500 Tenneco, Inc. ................................. 20,000 917,500 ----------- 3,870,750 ----------- (Right Column) Shares Value ------ ----- Entertainment & Leisure (2.40%) Carnival Cruise Lines Class A ................. 40,000 $ 995,000 Time Warner, Inc. ............................. 30,000 1,098,750 ----------- 2,093,750 ----------- Financial Services (2.47%) American Express Co. .......................... 40,000 1,390,000 Cash America Investment, Inc. ........................................ 100,000 762,500 ----------- 2,152,500 ----------- Food, Beverage, & Tobacco (1.56%) Philip Morris Co., Inc. ....................... 20,000 1,355,000 ----------- Health Care (0.69%) *National Health Labs .......................... 40,000 600,000 ----------- Industrial & Related (2.02%) Minnesota Mining & Manufacturing ............................... 20,000 1,192,500 Motorola, Inc. ................................ 10,000 568,750 ----------- 1,761,250 ----------- Insurance (0.63%) Washington National Corp. ..................... 30,100 553,088 ----------- Oil & Related (0.47%) *Reading & Bates Corp. ......................... 50,000 412,500 ----------- Pharmaceuticals (2.80%) Pfizer, Inc. .................................. 18,000 1,559,250 Warner Lambert Co. ............................ 11,000 877,250 ----------- 2,436,500 ----------- Recreation & Related (0.40%) *Leslie's Poolmart ............................. 20,000 345,000 ----------- Retail (1.99%) J.C. Penney, Inc. ............................. 20,000 875,000 The Limited ................................... 40,000 855,000 ----------- 1,730,000 ----------- Telecommunications (3.92%) *Airtouch Communications ....................... 40,000 1,075,000 AT&T Corp. .................................... 15,000 761,250 SBC Communications ............................ 25,000 1,103,125 *TeleCommunications A Shares .................................... 25,000 478,125 ----------- 3,417,500 ----------- TOTAL U.S. EQUITY SECURITIES SECTOR (IDENTIFIED COST $40,542,572) ................................ 43,176,588 ----------- 3 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 (Left Column) Shares Value ------ ----- FOREIGN SECURITIES SECTOR (18.88%) AUSTRALIA (0.63%) Machinery (0.17%) Broken Hill Proprietary ....................... 10,479 $ 152,543 ----------- Metals & Mining (0.13%) Western Mining Corp. .......................... 20,000 113,253 ----------- Paper Products (0.17%) Amcor Ltd. (ORD) .............................. 20,000 147,026 ----------- Publishing/Printing (0.16%) News Corporation Ltd. ......................... 31,320 138,371 ----------- TOTAL AUSTRALIA .......................... 551,193 ----------- CANADA (0.10%) Metals & Mining (0.10%) *Cominco Ltd. .................................. 5,000 83,655 ----------- FRANCE (2.32%) Consumer Goods & Related (0.30%) L'Oreal ....................................... 990 260,272 ----------- Electronics & Electrical (0.27%) Legrand ....................................... 160 231,451 ----------- Financial Services (0.52%) AXA ........................................... 4,600 242,243 Credit Local de France ........................ 2,500 212,820 ----------- 455,063 ----------- Food, Beverage, & Household (0.31%) LVMH Moet Hennessy ............................ 1,410 267,848 ----------- Housing & Construction (0.47%) Colas ......................................... 600 107,883 Compagnie de Saint Gobain ..................... 2,310 298,488 ----------- 406,371 ----------- Machinery (0.26%) Valeo (ORD) ................................... 4,050 230,394 ----------- Multi-Industry (0.05%) Primagaz cie Gaz .............................. 250 46,831 ----------- Textile & Apparel (0.14%) Castorama Dubois .............................. 720 119,074 ----------- TOTAL FRANCE ............................................ 2,017,304 ----------- GERMANY (1.47%) Chemicals & Related (0.27%) Linde AG ...................................... 402 230,915 ----------- Machinery (0.36%) Mannesmann .................................... 1,155 314,243 ----------- Medical Products & Related (0.58%) Fresenius (PFD) ............................... 445 282,234 Wella (PFD) ................................... 300 223,784 ----------- 506,018 ----------- Utilities & Related (0.26%) Veba AG ....................................... 615 228,935 ----------- TOTAL GERMANY ........................................... 1,280,111 ----------- (Right Column) Shares Value ------ ----- HONG KONG (0.60%) Airlines (0.15%) Swire Pacific Ltd., Class A ................... 20,000 $ 133,704 ----------- Banking (0.07%) Hong Kong & Shanghai Bank ..................... 5,431 62,968 ----------- Financial Services (0.14%) First Pacific ................................. 150,000 123,046 ----------- Real Estate (0.08%) Cheung Kong Hldgs. Ltd. ....................... 15,000 63,170 ----------- Utilities (0.16%) China Light & Power ........................... 12,000 56,582 Citic Pacific Ltd. ............................ 35,000 85,680 ----------- 142,262 ----------- TOTAL HONG KONG ......................................... 525,150 ----------- IRELAND (0.14%) Housing & Construction (0.14%) CRH PLC ....................................... 20,000 123,656 ----------- JAPAN (5.51%) Automotive (0.30%) Mabuchi Motor Co. Ltd. ........................ 4,000 264,160 ----------- Banking (0.60%) Mitsubishi Bank Ltd. ......................... 7,000 171,585 Mitsubishi Trust and Banking ................. 20,000 345,074 ----------- 516,659 ----------- Chemicals & Related (0.46%) Daicel Chemical Industry ..................... 35,000 204,902 Sekisui Chemical ............................. 16,000 199,905 ----------- 404,807 ----------- Electronics & Electrical Equipment (1.15%) Canon Sales Co. ............................... 10,000 264,160 Hitachi Zosen ................................. 50,000 239,767 Minebea Co., Ltd. ............................. 35,000 259,460 *Yaskawa Electric Corp. ........................ 50,000 239,766 ----------- 1,003,153 ----------- Financial Services (0.43%) Daiwa Securities Co. .......................... 15,000 189,196 Japan Securities Finance Co., Ltd ......................................... 12,000 188,482 ----------- 377,678 ----------- Housing & Construction (0.49%) Taisei Corp. Ltd. ............................. 25,000 172,834 Tostem Corp. .................................. 7,000 254,045 ----------- 426,879 ----------- Industrial & Related (0.55%) Asahi Glass Co. ............................... 20,000 261,780 Nippon Steel Corp. ............................ 55,000 218,586 ----------- 480,366 ----------- 4 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 (Left Column) Shares Value ------ ----- Machinery (0.60%) Autobacs Seven ................................ 3,200 $ 333,936 Mori Spiki .................................... 10,000 186,817 ----------- 520,753 ----------- Real Estate (0.25%) Mitsubishi Estate Co. ......................... 18,000 216,326 ----------- Retail (0.44%) Ito Yokado Company, Ltd. ...................... 4,000 215,611 Jusco Ltd. .................................... 8,000 163,732 ----------- 379,343 ----------- Telecommunications (0.24%) DDI Corp. ..................................... 24 211,328 ----------- TOTAL JAPAN ............................................. 4,801,452 ----------- MEXICO (0.06%) Retail (0.06%) *Fotoluz Corp. ................................. 115,000 53,711 ----------- NETHERLANDS (1.64%) Electronics & Electrical (0.27%) Philips Electronics ........................... 6,200 236,403 ----------- Insurance (0.27%) Aegon NV ...................................... 3,030 235,164 ----------- Publishing/Printing (0.49%) Verenigde Ned. Uitg. .......................... 1,950 218,034 Wolters Kluwer ................................ 2,600 211,503 ----------- 429,537 ----------- Transportation (0.61%) Koninklijke Ahold NV .......................... 7,350 252,795 Koninklijke PTT Nederland NV .................. 7,950 277,016 ----------- 529,811 ----------- TOTAL NETHERLANDS ....................................... 1,430,915 ----------- NORWAY (0.23%) Multi-Industry (0.23%) Orkla AS ...................................... 4,600 197,278 ----------- SWEDEN (0.67%) Automotive (0.23%) Volvo Class B Free Shares ..................... 10,500 197,089 ----------- Consumer Related (0.21%) Autoliv AB .................................... 4,000 180,966 ----------- Industrial (0.23%) Saab Swedish Steel Class A .................... 4,600 202,734 ----------- TOTAL SWEDEN ............................................ 580,789 ----------- SWITZERLAND (1.53%) Consumer Related (0.20%) Merkur Hldgs. ................................. 670 181,776 ----------- Electronics & Electrical (.20%) Sulzer Gebrueder AG ........................... 300 171,421 ----------- Insurance (0.21%) Winterthur Schweiz ............................ 320 180,616 ----------- (Right Column) Shares Value ------ ----- Machinery (0.31%) BBC Brown Boveri Ltd. ......................... 275 $ 271,329 ----------- Medical Products & Related (0.31%) PSC Roche Hldgs. .............................. 45 270,283 ----------- Metals & Mining (0.30%) Alusuisse Lonza Hldgs ......................... 470 261,179 ----------- TOTAL SWITZERLAND ..................................... 1,336,604 ----------- UNITED KINGDOM (3.98%) Banking (0.19%) Bank of Ireland ............................... 30,000 162,193 ----------- Beverages (0.19%) Guinness PLC .................................. 22,500 169,977 ----------- Consumer Related (0.82%) Cadbury Schweppes PLC ......................... 35,000 252,019 Compass Group PLC ............................. 40,000 214,971 Greencore Group PLC ........................... 17,000 120,084 WM Morrison ................................... 55,000 128,323 ----------- 715,397 ----------- Electrical Equipment (0.40%) Powergen PLC .................................. 22,000 68,675 Siebe PLC ..................................... 30,452 275,865 ----------- 344,540 ----------- Entertainment & Leisure (0.17%) Granada Group ................................. 17,000 155,781 ----------- Health Care (0.44%) Smithkline Beecham Class A .................... 32,000 253,073 Takare (ORD) .................................. 40,000 128,081 ----------- 381,154 ----------- Housing & Construction (0.14%) CRH PLC ....................................... 20,000 121,806 ----------- Machinery (0.16%) Chubb Security PLC ............................ 29,000 140,455 ----------- Multi-Industry (0.29%) BTR PLC ....................................... 48,000 254,103 ----------- Oil Related (0.31%) British Petroleum PLC ......................... 37,223 268,026 ----------- Retail (0.33%) Thorne-Emi PLC 15,538 284,268 Telecommunications (0.28%) Carlton Communications PLC..................... 16,000 243,033 ----------- Transportation (0.26%) Principal --------- British Airways Conv. Bond 9.75%, 6/15/05 ..............................L 79,000 224,677 ----------- TOTAL UNITED KINGDOM .................................. 3,465,410 ----------- TOTAL FOREIGN SECURITIES SECTOR (IDENTIFIED COST $15,019,502) ....................... 16,447,228 ----------- 5 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 (Left Column) Shares Value ------ ----- EMERGING MARKETS SECTOR (12.69%) ARGENTINA (0.58%) Consumer Goods & Related (0.33%) BAESA (ADR) ................................... 5,900 $ 162,250 Quilmes Industrial S.A. ....................... 6,500 123,500 ----------- 285,750 ----------- Utilities & Related (0.25%) Compania Naviera Perez Companc "B" Shares .......................... 26,970 110,032 YPF Sociedad Anonima .......................... 5,400 109,350 ----------- 219,382 ----------- TOTAL ARGENTINA ....................................... 505,132 ----------- BRAZIL (1.72%) Basic Industries (0.94%) Acesita PN (ADR) .............................. 12,864 197,635 Compania Vale Do Rio Doce (ADR) ....................................... 4,600 192,400 Usiminas (ADR) ................................ 34,600 417,546 ----------- 807,581 ----------- Capital Goods (0.20%) *Rhodia Ster (GDR) ............................. 12,781 173,869 ----------- Energy Related (0.16%) *Electrobras "B" Shares ........................ 165,000 44,434 *Electrobas Common ............................. 345,500 95,310 ----------- 139,744 ----------- Industrial & Related (0.20%) *Cemig (ADR) ................................... 7,307 170,748 ----------- Telecommunications (0.22%) Telebras (ADR) ................................ 5,450 194,917 ----------- TOTAL BRAZIL .......................................... 1,486,859 ----------- CHILE (0.54%) Basic Industries (0.19%) Antofagasta Holdings .......................... 28,000 130,656 *Sociedad Quimica Y Minera (ADR) ....................................... 1,000 34,875 ----------- 165,531 ----------- Capital Goods (0.28%) Madeco S.A. (ADR) ............................. 5,300 154,363 Maderas Y Sinteticos Sociedad (ADS) ................................ 5,000 87,500 ----------- 241,863 ----------- Financial Services (0.07%) Banco O'Higgins (ADR) ......................... 3,500 63,875 ----------- TOTAL CHILE ........................................... 471,269 ----------- (Right Column) Shares Value ------ ----- CHINA (0.15%) Financial Services *China North Industries Investment Ltd. Class A ..................... 135,000 $ 135,000 ----------- COLOMBIA (0.44%) Banking (0.12%) (D)Banco Ganadero S.A. (ADS) ..................... 3,400 63,742 Banco Ganadero (GDR) .......................... 2,300 43,590 ----------- 107,332 ----------- Basic Industries (0.32%) Cementos Diamante (GDS) ....................... 12,700 277,749 ----------- TOTAL COLOMBIA ........................................ 385,081 ----------- ECUADOR (0.23%) Construction (0.23%) Cemento Nacional de Ecuador (GDR) ....................................... 864 203,040 ----------- HONG KONG (0.39%) Banking (0.16%) Dao Heng Group Ltd. ........................... 56,000 143,237 ----------- Multi Industry (0.04%) Champion Technology Holdings .................................... 399,000 30,411 *Star Paging Int'l. Wts. 12/31/96 .................................... 60,000 372 ----------- 30,783 ----------- Real Estate (0.04%) *Jardine Strategic Holdings, Inc. (PFD) .................................. 10,965 37,281 ----------- Shipping (.15%) *Shanghai Hai Xing Shipping Co. Ltd. Class "H" .......................... 700,000 130,216 ----------- TOTAL HONG KONG ..................................... 341,517 ----------- HUNGARY (0.11%) Capital Goods (0.09%) *Matav Rt. ...................................... 450 79,646 ----------- Consumer Goods & Related (0.02%) *Kekkut Asvanyiz Rt. (GDR) ...................... 2,100 18,213 ----------- TOTAL HUNGARY ......................................... 97,859 ----------- INDIA (1.08%) Basic Industries (0.34%) Principal Gujarat Ambuja Cements Ltd. Conv. Bond --------- 3.5%, 6/30/99 .............................. $70,000 90,125 Shares ------ *Hindalco Industries Ltd. (GDR) .................................. 3,700 96,200 United Phosphorus (GDR) ....................... 4,500 109,125 ----------- 295,450 ----------- 6 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 (Left Column) Shares Value ------ ----- Consumer Goods & Related (0.20%) *DCW Limited (GDR) ............................. 3,500 $ 45,500 *Dr. Reddy's Laboratories Ltd. (GDR) ....................................... 12,200 128,100 ----------- 173,600 ----------- Investment Companies (0.54%) *Himalayan Fund ................................. 8,149 111,641 *Himalayan Fund Bonus Wts. 12/31/96 ................................ 1,130 706 *Indian Opportunities Fund Ltd. ................. 27,282 360,673 ----------- 473,020 ----------- TOTAL INDIA ........................................... 942,070 ----------- INDONESIA (0.40%) Chemicals (0.03%) *PT Keramika Indonesia Assoc. .................. 34,000 28,930 ----------- Capital Goods (0.09%) *PT Argha Karya Prima .......................... 32,000 22,929 *PT Indonesia Satellite (ADR) .................. 1,600 57,800 ----------- 80,729 ----------- Consumer Goods & Related (0.15%) PT Concord Benefit Textile Co. ................................. 35,000 69,749 *PT Kalbe Farma ................................ 7,500 26,702 PT Texmaco Jaya ............................... 57,600 30,954 ----------- 127,405 ----------- Financial Services (0.13%) Bank International Indonesia .................. 35,400 82,436 *PT Andyani Megah .............................. 30,000 26,870 ----------- 109,306 ----------- TOTAL INDONESIA 346,370 ----------- ISRAEL (0.28%) Financial Services (0.13%) *Ampal American Israel Wts. 1/31/99 ................................ 8,600 4,842 *Ampal American Israel Class A ................. 6,400 40,800 *PEC Israel Economic Corp. ..................... 2,500 69,063 ----------- 114,705 ----------- Investment Companies (0.09%) First Israel Fund ............................. 6,700 80,400 ----------- Multi-Industry (0.06%) Scitex Ltd. ................................... 2,241 51,263 ----------- TOTAL ISRAEL 246,368 ----------- (Right Column) Shares Value ------ ----- KOREA (1.37%) Capital Goods (0.13%) *Anam Industrial Co., Ltd. (PFD) ....................................... 5,000 $ 62,898 *Dae Woo Heavy (PFD) ........................... 6,000 50,764 ----------- 113,662 ----------- Consumer Goods & Related (0.01%) *Kia Motors Corp. .............................. 281 4,349 ----------- Construction & Housing (0.07%) *Kumho Construction & Energy Co. Ltd. Pfd. ............................... 9,000 63,160 ----------- Electrical & Electronics (0.16%) *Samsung Electronics ........................... 1,694 138,644 ----------- Financial Services (0.24%) *Commercial Bank of Korea ...................... 12,000 124,352 *Hanshin Securities Co., Ltd. (PFD) ....................................... 3,000 37,975 *Jin Heung Mutual Svgs. & Finance ..................................... 1,500 42,697 ----------- 205,024 ----------- Industrial & Related (0.14%) Hyundai Motor Service Co. (PFD) ....................................... 4,066 106,670 *Sammi Steel Co., Ltd. (PFD) ................... 2,000 12,068 ----------- 118,738 ----------- Oil & Related (0.02%) Principal Ssangyong Oil Refining --------- 3.0%, 12/31/04 .............................. $20,000 14,050 ----------- Retail & Related (0.10%) Shares ------ *Midopa Co. .................................... 7,000 87,230 ----------- Transportation (0.08%) *Dong Bang Forwarding Co. ...................... 1,700 69,351 ----------- Utilities & Related (0.42%) *Korea Electric Power Corp. (GDR) ....................................... 7,700 281,800 *Yukong Ltd. ................................... 2,000 88,673 ----------- 370,473 ----------- TOTAL KOREA ........................................... 1,184,681 ----------- MALAYSIA (0.42%) Consumer Goods & Related (0.06%) Edaran Otomobile Nasional (BHD) ....................................... 7,000 49,858 ----------- Financial Services (0.10%) Westmont Berhad ............................... 20,000 86,605 ----------- Industrial & Related (0.26%) Aokam Perdana Berhad .......................... 51,400 230,894 ----------- TOTAL MALAYSIA ....................................... 367,357 ----------- 7 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 (Left Column) Shares Value ------ ----- MEXICO (0.61%) Basic Industries (0.01%) *Cemex "B" Wts. 7/29/96 ........................ 35,200 $ 282 ----------- Consumer Goods & Related (0.01%) *Cifra S.A. Wts 8/03/96 ........................ 83,000 2,490 ----------- Financial Services (0.41%) *Ceteco (ADS) .................................. 7,400 174,862 *Grupo Carso S.A. (ADR)......................... 10,000 108,526 *Grupo Carso Wts. 5/3/96 ....................... 16,200 17,172 *Grupo Financiero Banamex Wts. 6/29/95 ................................ 35,300 4,413 Kimberly Clark de Mexico (ADR) ....................................... 3,000 61,976 ----------- 366,949 ----------- Telecommunications (0.18%) *Millicom International Cellular ............... 6,400 159,200 *Telefonos de Mexico BZW Wts. July 1995 .......................... 10,700 1,070 ----------- 160,270 ----------- TOTAL MEXICO .......................................... 529,991 ----------- PAKISTAN (0.01%) Basic Industries (0.01%) *D.G. Khan Cement Ltd. ......................... 4,043 5,573 ----------- PERU (1.18%) Capital Goods (0.31%) Cementos Lima "C" Shares ...................... 7,000 155,174 Cementos Norte Pacasmayo ...................... 9,966 34,672 *Southern Peru Copper, Class "T" Shares ............................ 17,374 77,881 ----------- 267,727 ----------- Financial Services (0.27%) Banco Wiese (ADR) ............................. 7,712 69,410 *Banco Wiese "C" Shares ........................ 1 2 Banco de Credito del Peru ..................... 78,805 165,202 ----------- 234,614 ----------- Telecommunications (0.27%) *Compania Peruana de Telephonos .................................. 128,275 215,127 *La Neuva Com de Telefonos ..................... 30,014 24,365 ----------- 239,492 ----------- Real Estate (0.33%) *Peru Real Estate S.A. "B" Shares ...................................... 350,000 290,500 ----------- TOTAL PERU ......................................... 1,032,333 ----------- PHILIPPINES (0.06%) Financial Services (0.06%) *Filinvest Land Inc. ........................... 195,500 54,785 ----------- (Right Column) Shares Value ------ ----- POLAND (0.53%) Banking (0.14%) Bank Rozwoju Exsportu S.A. (PDR) .................................. 8,310 $ 122,451 ----------- Basic Industries (0.09%) *Mostostal Exports (PDR) ....................... 13,412 75,315 ----------- Capital Goods (0.15%) *Debica S.A. (PDR) ............................. 5,000 63,333 *Polifarb Ciezyn (PDR) ......................... 13,000 71,904 ----------- 135,237 ----------- Consumer Goods & Related (0.07%) Zwyeic Brewing Company (PDR) ....................................... 785 59,659 ----------- Financial Services (0.08%) Elektrim Trading Company (PDR) ....................................... 18,000 68,779 ----------- TOTAL POLAND 461,441 ----------- RUSSIA (0.06%) Telecommunications (0.06%) *Petersburg Long Distance Inc. ................. 10,060 51,558 ----------- SINGAPORE (0.33%) Basic Industries (0.13%) Clipsal Industries Hldgs., Ltd. ............... 53,000 114,480 ----------- Capital Goods (0.20%) GP Batteries Intl. Ltd. ....................... 25,000 60,000 *Sembawang Maritime Ltd. ....................... 27,000 113,307 ----------- 173,307 ----------- TOTAL SINGAPORE 287,787 ----------- SLOVENIA (0.07%) Banking (0.07%) *Slovenia Kredit Bank (IDR) .................... 200 58,454 ----------- SOUTH AFRICA (0.72%) Basic Industries (0.20%) *Iscor Ltd. .................................... 73,602 91,322 Sasol Ltd. .................................... 9,000 87,047 ----------- 178,369 ----------- Consumer Goods & Related (0.19%) *JD Group ...................................... 15,000 54,922 South African Breweries Ltd. .................. 4,000 110,535 ----------- 165,457 ----------- Financial Services (0.09%) Barlow Rand Ltd. .............................. 4,000 40,345 *Nedcor Ltd. ................................... 3,200 39,130 ----------- 79,475 ----------- Metals & Mining (0.10%) Samancor Ltd. ................................. 6,500 90,259 ----------- Real Estate (0.14%) Safmarine & Rennie Hldgs. Ltd. ........................................ 38,000 118,135 ----------- TOTAL SOUTH AFRICA .................................... 631,695 ----------- 8 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 (Left Column) Shares Value ------ ----- SRI LANKA (0.05%) Financial Services (0.05%) *Sri Lankan Growth ............................. 6,800 $ 43,350 *Sri Lankan Growth Wts. 3/1/98 ................................. 1,360 2,040 ----------- 45,390 ----------- TOTAL SRI LANKA ....................................... 45,390 ----------- TAIWAN (0.74%) Basic Industries (0.13%) *Tuntex Distinct (GDS) ......................... 9,524 111,907 ----------- Construction (0.16%) Principal Pacific Construction Conv. --------- Bond 2.13% 10/1/98 .......................... $150,000 140,993 ----------- Industrial & Related (0.01%) Shares ------ Asia Cement Corp. ............................. 190 3,800 ----------- Investment Companies (0.44%) *Taiwan Opportunities Fund Ltd. ................................... 37,500 387,000 ----------- TOTAL TAIWAN .......................................... 643,700 ----------- THAILAND (0.51%) Consumer Goods & Related (0.08%) *Hana Microelectronics ......................... 19,000 71,458 ----------- Financial Services (0.32%) General Finance & Securities .................. 36,000 143,444 MDX Co. Ltd. .................................. 40,000 82,944 Siam City Credit Finance & Securities ................................ 16,000 48,790 ----------- 275,178 ----------- Transportation (0.11%) Precious Shipping Corp. ....................... 10,000 107,339 ----------- TOTAL THAILAND 453,975 ----------- TURKEY (0.01%) Consumer Goods & Related (0.01%) Koc Yatirim ................................... 172 55 ----------- URUGUAY (0.10%) Financial Services (0.10%) Banco Commercial S.A. ......................... 6,600 85,800 ----------- TOTAL EMERGING MARKETS SECTOR (IDENTIFIED COST $12,742,396) .............................. 11,055,140 ----------- PRECIOUS METALS SECTOR (6.63%) METAL MINING SECURITIES (6.63%) CANADA (2.06%) *Dayton Mining Corp. ........................... 125,000 386,100 Franco Nevada Mining Ltd. ..................... 8,500 425,078 *Prime Resources Group, Inc. ................... 90,000 620,518 TVX Gold, Inc. ................................ 50,000 363,119 ----------- TOTAL CANADA .......................................... 1,794,815 ----------- (Right Column) Shares Value ------ ----- UNITED STATES (4.57%) Ashanti Gold Fields (GDR) ....................................... 28,000 $ 672,000 *Canyon Resources Corp. ....................................... 172,000 354,750 Homestake Mining .............................. 40,000 675,000 *Kinross Gold Corp. ............................ 100,000 600,000 Newmont Mining Corp. .......................... 16,000 670,000 Placer Dome, Inc. ............................. 13,000 308,750 Santa Fe Pacific Gold Corp. ....................................... 55,000 694,375 ----------- TOTAL UNITED STATES ................................ 3,974,875 ----------- TOTAL PRECIOUS METALS SECTOR (IDENTIFIED COST $5,846,039) ...................................... 5,769,690 ----------- U.S. FIXED INCOME SECURITIES SECTOR (8.66%) U.S. GOVERNMENT AND AGENCY ISSUES (8.66%) Principal (c)Government National --------- Mortgage Association TBA 9.0%, 6/01/09 ............................... $670,000 695,125 (c)Government National Mortgage Association TBA 10.0%, 5/01/19 .............................. 450,000 483,047 Government National Mortgage Association 6.5%, 2024 ................................ 1,861,337 1,701,034 U.S. Treasury Bond 7.50%, 11/15/24 ............................. 1,300,000 1,319,093 (b)U.S. Treasury Note 7.625%, 4/30/96 ............................. 1,680,000 1,700,474 U.S. Treasury Note 6.125%, 7/31/96 ............................. 840,000 837,112 U.S. Treasury Note 11.125%, 8/15/03 ............................ 650,000 813,109 ----------- TOTAL U.S. FIXED INCOME SECURITIES SECTOR (IDENTIFIED COST $7,467,790) ......................................... 7,548,994 ----------- OPTIONS (0.01%) Contracts *Nikkei 225 Call, --------- Expires 9/8/95 Strike @ 19.83 (IDENTIFIED COST $89,480) .................................... 60 853 ----------- 9 BLANCHARD GLOBAL GROWTH FUND-PORTFOLIO OF INVESTMENTS (continued) April 30, 1995 Princial Value -------- ----- SHORT-TERM SECURITIES (3.82%) Associates Corp. of N.A. 5.80%, 5/1/95 ...............................$2,000,000 $ 2,000,000 U.S. Treasury Bill 6.08%, 11/16/95 ............................. 630,000 609,767 U.S. Treasury Bill 6.21%, 1/11/96 .............................. 750,000 718,816 ----------- TOTAL SHORT-TERM SECURITIES (AMORTIZED COST $3,322,569) ......................................... 3,328,583 ----------- TOTAL INVESTMENTS (IDENTIFIED COST $85,030,348) (a)(100.27%) ........................... 87,327,076 LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS (-0.27%) ..................................... (239,199) ----------- NET ASSETS (100%) ..................................... $87,087,877 =========== (Right Column) (a) The aggregate cost for federal income tax purposes is $85,120,015; the gross unrealized appreciation is $6,289,481 and the gross unrealized depreciation is $4,082,420; resulting in net unrealized appreciation of $2,207,061. (b) Security partially segregated to collateralize forward currency contracts and when issued securities. Total market value segregated is $1,690,352. (c) When-issued security (TBA is defined as "to be announced") * Non-income producing. (D) Registered under SEC rule 144-A, resale restricted as to qualified institutional buyers; represents 0.20% of net assets. SCHEDULE OF OPEN FORWARD CURRENCY CONTRACTS AS OF APRIL 30, 1995
Currency Unrealized Currency Sold Amount Purchased Amount Delivery Date Appreciation - ---------------------------------------------------------------------------------------------------- British Pounds 18,217 USD 29,365 May 1, 1995 $ 54 Swiss Francs 44,105 USD 39,100 May 2, 1995 624 ---- Total Unrealized Appreciation $678 ====
See notes to financial statements. 10 BLANCHARD GLOBAL GROWTH FUND Statement of Assets and Liabilities April 30, 1995 Assets: Investments in securities, at value (Identified Cost $85,030,348) ....................................... $87,327,076 Cash .................................................................. 1,516,999 Receivables for: Investments sold .................................................... 2,109,290 Shares of beneficial interest sold .................................. 4,353 Interest ............................................................ 156,305 Dividends ........................................................... 131,655 Forward currency contracts .......................................... 678 Foreign withholding tax reclaimable ................................. 4,985 ----------- Total assets 91,251,341 ----------- Liabilities: Payables for: Shares of beneficial interest repurchased ........................... 195,072 Investments purchased ............................................... 3,746,085 Foreign currency due to custodian (identified cost $72,424) ......... 71,957 Accrued expenses and other liabilities ................................ 150,350 ----------- Total liabilities ............................................... 4,163,464 ----------- Net assets ...................................................... $87,087,877 ----------- Net assets are comprised of: Paid in capital (unlimited authorized shares of beneficial interest, $.01 par value, 8,972,356 shares outstanding) ....................... $87,241,249 Undistributed net investment income ................................... 1,644,700 Accumulated realized loss-net ......................................... (4,098,048) Unrealized net appreciation of investments and net currency translation adjustments ............................................. 2,299,976 ----------- Net assets ...................................................... $87,087,877 =========== Net asset value per share ....................................... $9.71 =====
See notes to financial statements. 11 BLANCHARD GLOBAL GROWTH FUND Statement of Operations For the Year Ended April 30, 1995 Investment income: Interest .................................................................................... $ 2,203,012 Dividends (net of $42,820 foreign withholding tax) .......................................... 1,011,758 ----------- Total income .......................................................................... 3,214,770 ----------- Expenses Investment management fee (note 2) .......................................................... 983,753 Plan of distribution fees (note 3) .......................................................... 704,436 Transfer agent fees ......................................................................... 252,300 Custodian fees .............................................................................. 141,871 Trustees' fees, retirement plan curtailment and other expenses (note 5) ..................... 118,674 Professional fees ........................................................................... 100,393 Accounting fees ............................................................................. 76,975 Shareholder reports and notices ............................................................. 44,976 Registration fees ........................................................................... 31,165 Other ....................................................................................... 14,834 ----------- Total expenses ........................................................................ 2,469,377 ----------- Net investment income ....................................................................... 745,393 ----------- Realized and unrealized gain (loss)-net (note 1): Realized gain (loss) on: Investments in securities-net (net of $42,557 capital gains tax) ............. $ (722,130) Forward currency contracts and foreign exchange transactions-net ........................................................... (2,370,796) Options (70,451) (3,163,377) ----------- Change in unrealized appreciation or depreciation on: Investments-net .............................................................. 352,187 Forward currency contract and translation of other assets and liabilities denominated in foreign currency-net .................................................... 434,719 786,906 ----------- ----------- Net realized and unrealized losses .......................................................... (2,376,471) ----------- Net decrease in net assets resulting from operations ........................................ $(1,631,078) ===========
See notes to financial statements. 12 BLANCHARD GLOBAL GROWTH FUND Statement of Changes in Net Assets April 30, 1995
For the For the Year Ended Year Ended April 30, 1995 April 30, 1994 -------------- -------------- Increase (decrease) in net assets: Operations: Investment income-net............................................ $ 745,393 $ 634,410 Realized gain (loss)-net......................................... (3,163,377) 10,101,136 Change in unrealized appreciation or depreciation-net............ 786,906 (1,424,538) ----------- ------------ Net increase (decrease) in net assets resulting from operations.. (1,631,078) 9,311,008 ----------- ------------ Dividends and distributions to shareholders from: Realized gains (losses)-net...................................... - (10,259,170) Distribution in excess of net realized gains .................... (2,156,307) - ----------- ------------ (2,156,307) (10,259,170) ----------- ------------ Transactions in shares of beneficial interest- net increase (decrease) (note 6)................................. (18,930,180) 25,973,929 ----------- ------------ Net increase (decrease) in net assets.............................. (22,717,565) 25,025,767 Net assets: Beginning of period................................................ 109,805,442 84,779,675 ----------- ------------ End of year (including undistributed and overdistributed net investment income of $1,644,700 and $334,578, respectivel........ $87,087,877 $109,805,442 =========== ============
See notes to financial statements. 13 BLANCHARD GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 1995 NOTE 1-Organization and Accounting Policies: Blanchard Global Growth Fund (the "Fund") is a series of Blanchard Funds which was organized as a Massachusetts business trust on January 24, 1986. The Fund is a registered, open-end non-diversified management investment company under the Investment Company Act of 1940 (the "Act"). The Fund had no operations before June 1, 1986 other than the sale of 12,589 shares of beneficial interest for $100,714 to eight parties who are also shareholders or affiliates of shareholders of Sheffield Management Company (the "Manager"). The following is a summary of the significant accounting policies followed by the Fund: A. Valuation of Investments-Portfolio securities traded on domestic or foreign exchanges are valued at the 4 PM EST price on that date, or if no sale is made on that day, at the closing bid price (or the mean price in cases where a mean is reported instead of the closing bid). In cases where a security is traded on more than one exchange, it is valued at the quotation on the exchange determined to be the primary market for such security by the Trustees or the Manager. All other portfolio securities for which over-the-counter market quotations are readily available are valued at the latest available bid prices. Short-term debt securities which mature in 60 days or less are valued at amortized cost if their original maturity was 60 days or less. Short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark to market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Bullion investments are valued at the closing spot price based on dealer or exchange quotations. All other securities and other assets of the Fund are valued at fair value as determined in good faith by the Trustees. Foreign currency exchange rates are determined when such rates are made available to the Fund at times prior to the close of the New York Stock Exchange. The abilities of the issuers of debt securities held by the Fund to meet their obligations may be affected by economic or political developments in a particular country, industry or region. B. Accounting for Investments and Investment Income Transactions-Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined on the identified cost method. Dividend income and other distributions are recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the Fund is informed after the ex-dividend date. Interest income is accrued daily. Premiums or discounts on debt securities are amortized or accreted as adjustments to interest income over the lives of such securities. C. Foreign Currency Translation-The books and records of the Fund are maintained in U.S. dollars as follows: (1) the foreign currency market value of investment securities, forward currency contracts, and other assets and liabilities denominated in foreign currencies are translated at the exchange rates at the end of the period; and (2) purchases, sales, income and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. The Fund does not separately identify that portion of the results of operations of the Fund that arise as a result of changes in the exchange rates from the fluctuations that arise from 14 BLANCHARD GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS (continued) changes in market prices of equity investments during the year. However, in accordance with the requirements of the Internal Revenue Code, the Fund isolates the effect of changes in foreign exchange rates from the fluctuations arising from changes in market prices of foreign debt obligations sold, and such foreign exchange losses, which amounted to $425,760, in fiscal 1995, are included in ordinary income for federal income tax purposes and in realized gain (loss) on forward currency contracts and foreign exchange transactions-net in the Statement of Operations. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability. The Fund may enter into forward currency contracts to protect the U.S. dollar value of securities and related receivables and payables against changes in future foreign rates. Forward currency contracts are valued based upon the current forward rates. Fluctuations in the value of such contracts are recorded as unrealized gains or losses; realized gains or losses include net gains or losses on contracts which have settled. The Fund generally enters into a forward currency contract as a hedge against foreign exchange rate fluctuation upon the purchase or sale of a security denominated in a foreign currency. The Fund maintains, as collateral, U.S. Government or other highly liquid debt obligations in an amount equal to or greater than its net obligation for forward currency contracts. Risks may arise as a result of the potential inability of the counterparties to meet the terms of their contracts. Any capital or foreign currency loss incurred after October 31 through the end of the Fund's taxable year is deemed to arise on the first day of the Fund's next taxable year, if so elected. The Fund elected to defer a net capital loss of [ ] and net currency loss of [ ] incurred during the year in fiscal 1995. Future distributions may be impacted by the deferred net capital and currency losses, as well as other differences between book and taxable income. E. Dividends and Distributions to Shareholders-The Fund records dividends and distributions to its shareholders on the record date. The amount of dividends and distributions from net investment income and net realized capital gains is determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income or net realized capital gains for financial reporting purposes but not for tax purposes are reported as distributions or dividends in excess of net investment income or net realized capital gains. To the extent they exceed net realized capital gains or net investment income for tax purposes, they are reported as distributions of paid-in capital. F. Other-Certain expenses of the Blanchard Group of Funds are allocated among the Funds based upon their relative average net assets during the year. NOTE 2-Investment Management Agreement: Pursuant to a management agreement (the "Agreement"), the Manager manages the Fund and the investment of the Fund's assets, subject at all times to the supervision of the Fund's Trustees. In addition to providing overall business management and administrative services, the Manager selects, monitors and evaluates the Portfolio Mangers and the Allocation Strategist described below. The Manager receives from the Fund an advisory fee payable monthly at an annual rate of 1% of the first $150 million of the Fund's average daily net assets, .875% of the Fund's average daily net assets in excess of $150 million but not exceeding $300 million and .75% of the Fund's average daily net assets in excess of $300 million. 15 BLANCHARD GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS (continued) Expenses of the Fund, exclusive of taxes, interest, brokerage commissions, distribution fees, extraordinary expenses and certain other excludable expenses for which a waiver has been obtained, are subject to the expenses limitation imposed by one state in which shares of the Fund are offered for sale. For the year ended April 30, 1995, the Fund's expenses did not exceed the above limitation. Certain officers and/or Trustees of the Fund are officers/directors of the Manager. The Manager has sub-advisory agreements with Shufro, Rose and Ehrman (U.S. Equity Securities Sector), Fiduciary Trust International, Inc. (Foreign Securities Sector), Cavelti Capital Management, Ltd. (Precious Metals Sector), Investment Advisers, Inc. (U.S. Fixed Income Securities Sector), Fiduciary Trust International, Inc. (Foreign Fixed Income Sector), and Martin Currie Inc. (Emerging Markets Sector) (formerly managed by Morgan Stanley Asset Management, Inc.) (collectively, the "Portfolio Managers") to serve as the Portfolio Managers for their respective sectors of the Fund. The Manager has an agreement with Fiduciary Trust International, Inc. to be the Allocation Strategist of the Fund. All fees for such services are paid by the Manager. The Manager has advised the Fund that the aggregate amount of fees paid to the Portfolio Managers and Allocation Strategist was $373,411 for the year ended April 30, 1995. NOTE 3-Distribution Agreement and Plan: Pursuant to a Distribution Agreement, Sheffield Investments, Inc. (the "Distributor"), an affiliated company of the Manager, acts as principal distributor of the Fund's shares. The Distributor has the exclusive right to distribute Fund shares directly or through other broker-dealers. The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act which provides that the Fund may finance activities which are primarily intended to result in the sale of the Fund's shares, including but not limited to advertising, printing of prospectuses and reports for other than existing shareholders, preparation and distribution of advertising material and sales literature, and payments to dealers and shareholder servicing agents who enter into agreements with the Manager or Distributor. Pursuant to the Plan, the Fund may pay distribution fees not to exceed .75% per annum of the Fund's average daily net assets. Payments under the Plan will be made for expenses actually incurred by the Distributor. Provided that the Plan continues in effect, any cumulative expenses incurred by the Distributor on or after May 1, 1988, but not yet reimbursed by the Fund, may be reimbursed through future distribution fees from the Fund. The Distributor has advised the Fund that at April 30, 1995, the unreimbursed distribution expenses amounted to $39,441. If the Plan is terminated or discontinued in accordance with its terms, the obligation of the Fund to make payments to the Distributor pursuant to the Plan will cease and the Fund will not be required to make any payments past the date the Plan is terminated. NOTE 4-Acquisition Agreement: Sheffield Management Company (the "Manager") and Sheffield Investments, Inc. (the "Distributor"), have entered into an acquisition agreement (the "Acquisition Agreement") with Signet Banking Corporation and two of its subsidiaries ("Signet"), dated February 15, 1995, pursuant to which Sheffield will sell to Signet the assets relating to, and the ability to succeed to contracts with, the Blanchard Funds, including Blanchard Global Growth Fund (collectively, the "Funds"). The transactions contemplated by the Acquisition Agreement which have been approved by the Board of Trustees of the Funds are conditioned upon the approval of the shareholders of each 16 BLANCHARD GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS (continued) Fund, of (1) a new investment management agreement with Signet, (2) a new distribution agreement with Federated Securities Corp., and (3)certain other conditions. No material changes are contemplated in the operation of the Funds and no management or distribution and administration fee increases are being proposed. NOTE 5-Security Transactions and Transactions with Affiliates: Purchases and sales of portfolio securities for the year ended April 30, 1995, excluding short-term investments, aggregated $192,426,251 and $207,676,868, respectively, including purchases and sales of U.S. Government obligations of $45,646,200 and $51,504,331, respectively. For the year ended April 30, 1995, the Fund paid brokerage commissions of $186,095 to Shufro, Rose and Ehrman. The Distributor has advised the Fund that it received $75 from shareholders as account opening fees for the year ended April 30, 1995. The Manager has advised the Fund that, for the year ended April 30, 1995, it incurred costs, which were reimbursed by the Fund, amounting to $108,373 for performing internal accounting and transfer agency functions for the Fund. The Funds have adopted an unfunded noncontributory pension plan (the "Plan") covering all independent directors/trustees of the Funds who will have served as an independent director/trustee for at least five years at the time of retirement. Benefits under this plan are based on an annual amount equal to 75% of the retainer fee 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. Net periodic pension expense included in Trustees' fees, retirement plan curtailment and other expenses in the Statement of Operations for the year ended April 30, 1995 was $25,539. As indicated in Note 4, the Manager has entered into an agreement which provides for the acquisition of the Manager by Signet. Following the acquisition, the independent directors/trustees of the Funds will not stand for re-election. As a result, the Plan was curtailed and additional pension expense of $77,069 was recorded to reflect the previously unrecognized prior service costs of independent directors/trustees. Included in accrued expenses and other liabilities at April 30, 1995 is $102,608 of accrued pension expense. NOTE 6-Shares of Beneficial Interest:
For the Year Ended For the Year Ended April 30, 1995 April 30, 1994 ------------------ ------------------ Shares Amount Shares Amount ------ ------ ------ ------ Sold ............................. 1,720,51 $ 17,005,687 4,135,745 $ 43,740,249 Reinvestment of dividends and distributions .................. 219,892 2,049,709 949,799 9,754,435 ---------- ------------ --------- ------------ 1,940,403 19,055,396 5,085,544 53,494,684 Repurchased ...................... (3,905,396) (37,985,576) (2,622,307) (27,520,755) ---------- ------------ --------- ------------ Net increase (decrease) .......... (1,964,993) $(18,930,180) 2,463,237 $ 25,973,929 ========== ============ ========= ============
NOTE 7-Federal Income Tax: Any capital loss incurred after October 31 through the end of the Fund's taxable year is deemed to arise on the first day of the Fund's next taxable year, if so elected. The Fund elected to defer a net capital loss of $1,793,511 and a currency loss of $136,506 incurred during such period in fiscal 1995. 17 BLANCHARD GLOBAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS (continued) As of April 30, 1995, the Fund had temporary book/tax differences primarily attributable to wash sales and post-October capital less deferrals. To reflect reclassifications arising from permanent book/tax differences for the year ended April 30, 1995, paid-in-capital was charged $452,281, accumulated net investment income was credited $1,233,886 and accumulated realized loss-net was debited $781,605. At April 30, 1995, the Fund had a net capital loss carryover of $293,056, which is available through April 30, 2003 to offset future capital gains. To the extent that these carryover losses are used to offset future capital gains, it is probable that the gains so offset will not be distributed to shareholders. NOTE 8-Financial Highlights: Selected ratios and per share data for a share of beneficial interest outstanding:
For the Year Ended April 30, ----------------------------------------------- Per Share Operating Performance: 1995 1994 1993 1992 1991 ---- ---- ---- ---- ---- Net asset value, beginning of year .................. $10.04 $10.00 $ 9.92 $ 9.64 $ 9.62 ------ ------ ------ ------ ------ Income from investment operations: Net investment income ............................. .08 .03 .25 .33 .30 Net gains or losses on investments (both realized and unrealized) ........................ (.19) 1.29 .32 .26 .14 ------ ------ ------ ------ ------ Net income (loss) from investment operations .................. (.11) 1.32 .57 .59 .44 ------ ------ ------ ------ ------ Less dividends and distributions: Dividends from investment income-net .............. - (.00) (.30) (.31) (.21) Distributions from realized gains-net ............. - (1.28) (.19) - (.21) Distributions in excess of net realized gains ..... (.22) - - - - ------ ------ ------ ------ ------ Change in net asset value ..................... (.33) .04 .08 .28 .02 Net asset value, end of year ........................ $ 9.71 $10.04 $10.00 $ 9.92 $ 9.64 ====== ====== ====== ====== ====== Total return ........................................ (1.04%) 12.91% 6.08% 6.24% 4.61% Ratios/Supplemental Data: Net assets, end of year ($ Million) ............... $ 87 $110 $85 $128 $194 Ratio of expenses to average net assets ........... 2.51% 2.61% 2.40% 2.31% 2.36% Ratio of net investment income of average net assets .............................. .76% .67% 1.72% .31% 2.84% Portfolio turnover ................................ 221% 166% 138% 109% 78%
18 BLANCHARD GLOBAL GROWTH FUND REPORT OF INDEPENDENT ACCOUNTANTS To the Trustees and Shareholders of Blanchard Global Growth Fund In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Blanchard Global Growth Fund (the "Fund") at April 30, 1995, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 1995 by correspondence with the custodian and brokers and the application of alternative procedures where confirmations were not received, provide a reasonable basis for the opinion expressed above. PRICE WATERHOUSE LLP 1177 Avenue of the Americas New York, New York 10036 June 20, 1995 19 (Left Column) Portfolio Advisers Lombard Order International Portfolio Mot., Ltd. WLO Global Management Custodian and Transfer Agent United States Trust Company of New York Independent Accountants Price Waterhouse LLP Legal Counsel Kramer, Levin, Naftalis, Nessen, Kamin & Frankel Blanchard Short-Term Global Income Fund 41 Madison Ave., 24th Floor New York, NY 10010-2267 (Right Column) Blanchard Short-Term Global Income Fund Annual Report April 30, 1995 Managed by: Sheffield Management Company 41 Madison Ave., 24th Floor New York, NY 10010-2267 1-800-922-7771 -----END PRIVACY-ENHANCED MESSAGE-----