-----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, NXpzm3gSuNr+aLQVHCpacFxvm5xQV4Av8SDQdIvuzTXxfKdyS4AIk4E7Q2Tqw5/b 3AKql55uy9QLZZR9rCsjTA== 0000912057-96-020857.txt : 19960923 0000912057-96-020857.hdr.sgml : 19960923 ACCESSION NUMBER: 0000912057-96-020857 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960712 FILED AS OF DATE: 19960920 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIPER FUNDS INC CENTRAL INDEX KEY: 0000806177 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04905 FILM NUMBER: 96632909 BUSINESS ADDRESS: STREET 1: 222 S 9TH ST - STE 1300 STREET 2: PIPER JEFFRAY TOWER CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 6123426288 MAIL ADDRESS: STREET 1: 222 S 9TH ST - STE 1300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: PIPER JAFFRAY INVESTMENT TRUST INC DATE OF NAME CHANGE: 19940520 FORMER COMPANY: FORMER CONFORMED NAME: PIPER JAFFRAY FUNDS INC DATE OF NAME CHANGE: 19870127 N-30D 1 FORM N-30D - -------------------------------------------------------------------------------- FINANCIAL STATEMENTS STATEMENT OF OPERATIONS FOR THE PERIOD FROM OCTOBER 1, 1995 TO JULY 12, 1996* INCOME: Interest ............................................... $ 7,252 ---------------- EXPENSES (NOTE 5): Investment management fee ................................ 479 Distribution fees ........................................ 240 Custodian, accounting and transfer agent fees ............ 15,656 Shareholder account servicing fees ....................... 90 Registration fees ........................................ 5,030 Reports to shareholders .................................. 7,548 Directors' fees .......................................... 1,333 Audit and legal fees ..................................... 12,325 Other expenses ........................................... 3,693 ---------------- Total expenses ....................................... 46,394 Less expenses waived by the advisor ...................... (45,514) ---------------- Net expenses before expenses paid indirectly ........... 880 Less expenses paid indirectly ............................ (19) ---------------- Total net expenses ................................... 861 ---------------- Net investment income ................................ 6,391 ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized loss on investments (note 3) ................ (1,870) Net change in unrealized appreciation or depreciation of investments ............................................ (567) ---------------- Net loss on investments ................................ (2,437) ---------------- Net increase in net assets resulting from operations ....................................... $ 3,954 ---------------- ---------------- *THE FUND DISTRIBUTED ALL ITS NET ASSETS TO SHAREHOLDERS AND CEASED OPERATIONS ON JULY 12, 1996.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- FINANCIAL STATEMENTS STATEMENTS OF CHANGES IN NET ASSETS
Period Ended Period Ended 7/12/96* 9/30/95** ---------------- ---------------- OPERATIONS: Net investment income .................................. $ 6,391 4,106 Net realized gain (loss) on investments .................. (1,870) 403 Net change in unrealized appreciation or depreciation of investments . (567) 567 ---------------- ---------------- Net increase in net assets resulting from operations ... 3,954 5,076 ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income ............................... (6,350) (4,106) ---------------- ---------------- From net realized gains .................................. (403) -- ---------------- ---------------- Total distributions .................................. (6,753) (4,106) ---------------- ---------------- CAPITAL SHARE TRANSACTIONS (NOTE 4): Proceeds from sales ...................................... 70,948 195,285 Proceeds from issuance of shares for reinvestment of distributions .......................................... 7,452 2,867 Payments for shares redeemed ............................. (219,711) (56,012) ---------------- ---------------- Increase (decrease) in net assets from capital share transactions ......................................... (141,311) 142,140 ---------------- ---------------- Total increase (decrease) in net assets .............. (144,110) 143,110 Net assets at beginning of year ............................ 144,110 1,000 ---------------- ---------------- Net assets at end of year ................................ $ -- 144,110 ---------------- ---------------- ---------------- ---------------- * PERIOD FROM OCTOBER 1, 1995 TO JULY 12, 1996. THE FUND DISTRIBUTED ALL ITS NET ASSETS AND CEASED OPERATIONS ON JULY 12, 1996. ** COMMENCEMENT OF OPERATIONS WAS APRIL 10, 1995.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (1) ORGANIZATION Piper Funds Inc. (the company) is registered under the Investment Company Act of 1940 (as amended) as a single, open-end investment management company. The company's articles of incorporation permit the board of directors to create additional series in the future. The company currently has 13 series, including Short-Intermediate Bond Fund (the fund), which is classified as a diversified series. The fund commenced operations on April 10, 1995, when its shares were first offered for sale to the public and ceased operations and distributed all its net assets to shareholders on July 12, 1996. The fund invested primarily in a broad range of investment-quality debt securities with remaining maturities of five years or less. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS IN SECURITIES The values of certain fixed income securities were provided by an independent pricing service, which determined these valuations at a time earlier than the close of the Exchange. Fixed income securities for which prices were not available from an independent pricing service but where an active market existed were valued using market quotations obtained from one or more dealers that made markets in the securities. Short-term securities with maturities of 60 days or less were valued at amortized cost, which approximated market value. Securities transactions were accounted for on the date the securities were purchased or sold. Realized gains and losses were calculated on the identified-cost basis. Interest income, including amortization of bond discount and premium computed on a level-yield basis, was accrued daily. FEDERAL TAXES The fund complied with the requirements of the Internal Revenue Code applicable to regulated investment companies and was not subject to federal income tax. Therefore, no income tax provision was required. DISTRIBUTIONS TO SHAREHOLDERS Distributions to shareholders from net investment income were declared daily and paid monthly. Distributions were paid in cash or reinvested in additional shares. REPURCHASE AGREEMENTS For repurchase agreements entered into with certain broker-dealers, the fund, along with other affiliated registered investment companies, transferred uninvested cash balances into a joint trading account, the daily aggregate of which was invested in repurchase agreements secured by U.S. government or agency obligations. Securities pledged as collateral for all individual and joint repurchase agreements were held by the fund's custodian bank until maturity of the repurchase agreement. Provisions for all agreements ensured that the daily market value of the collateral was in excess of the repurchase amount, including accrued interest, to protect the fund in the event of a default. (3) INVESTMENT SECURITY TRANSACTIONS Cost of purchases and proceeds from sales of securities, other than temporary investments in short-term securities, for the period from October 1, 1995 to July 12, 1996 aggregated $88,270 and $223,802, respectively. During the period from October 1, 1995 to July 12, 1996, no brokerage commissions were paid to Piper Jaffray Inc., an affiliated broker. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (4) CAPITAL SHARE TRANSACTIONS Transactions in shares of the fund for the period from October 1, 1995 to July 12, 1996, and the period from inception (April 10, 1995) to September 30, 1995, were as follows:
1996: Sold ...................................... 6,973 Issued for reinvested distributions ....... 738 Redeemed .................................. (21,994) --------- Decrease ............................... (14,283) --------- --------- 1995: Sold ...................................... 19,569 Issued for reinvested distributions ....... 284 Redeemed .................................. (5,570) --------- Increase ............................... 14,283 --------- ---------
(5) EXPENSES The company entered into an investment management agreement with Piper Capital Management Incorporated (Piper Capital) under which Piper Capital managed the fund's assets and furnished related office facilities, equipment, research and personnel. The agreement required the fund to pay Piper Capital a monthly fee equal to an annualized rate of 0.40% of average daily net assets. The fund also paid Piper Jaffray Inc. (Piper Jaffray), the fund's distributor, a monthly fee for providing shareholder services and distribution-related services. The fee was limited to 0.20% , all of which represented a servicing fee. The company also entered into shareholder servicing agreements under which Piper Jaffray and Piper Trust Company performed various transfer and dividend disbursing agent services for accounts held at the respective company. The fees, which were paid monthly to Piper Jaffray and Piper Trust Company for providing these services, were equal to an annual rate of $7.50 per active shareholder account and $1.60 per closed account. In addition to the investment management, distribution and shareholder account servicing fees, the fund was responsible for paying most other operating expenses including: outside directors' fees and expenses; custodian fees; registration fees; printing and shareholder reports; transfer agent fees and expenses; legal, auditing and accounting services; insurance; interest; taxes and other miscellaneous expenses. For the period from October 1, 1995 to July 12, 1996, Piper Capital voluntarily limited total fees and expenses, including the distribution and servicing fees, but excluding interest and income tax expenses, to an annual rate of 0.75% of average daily net assets. Expenses paid indirectly represented a reduction of custodian fees for earnings on cash balances maintained by the fund. No sales charges were received by Piper Jaffray for distributing the fund's shares for the period from October 1, 1995 to July 12, 1996. - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (6) FINANCIAL HIGHLIGHTS Per-share data for a share of capital stock outstanding throughout each period and selected information for each period are as follows: SHORT-INTERMEDIATE BOND FUND
Period ended Period ended July 12, September 30, 1996(e) 1995(c) ------------- -------------- PER-SHARE DATA Net asset value, beginning of period ...... $ 10.09 10.00 ------ ------ Operations: Net investment income ..................... 0.40 0.28 Net realized and unrealized gains (losses) on investments .......................... (0.14) 0.09 ------ ------ Total from operations ................... 0.26 0.37 ------ ------ Distributions to shareholders from: Net investment income ..................... (0.40) (0.28) Liquidation of net assets of the fund ....... (9.92)(e) -- Net realized gains on investments ........... (0.03) -- ------ ------ Total distributions to shareholders ..... (10.35) (0.28) ------ ------ Net asset value, end of period ............ $ 0.00 10.09 ------ ------ ------ ------ SELECTED INFORMATION Total return(a) ............................. 2.56% 3.73% Net assets at end of period (in millions) ............................... $ 0.0 0.1 Ratio of expenses to average daily net assets(b) ................................. 0.73%(d) --(d) Ratio of net investment income to average daily net assets(b) ....................... 5.30%(d) 6.12%(d) Portfolio turnover rate (excluding short-term securities) ............................... 60% 31%
(A) TOTAL RETURN IS BASED ON THE CHANGE IN NET ASSET VALUE DURING THE PERIOD, ASSUMES REINVESTMENT OF ALL DISTRIBUTIONS AND DOES NOT REFLECT A SALES CHARGE. (B) DURING THE YEARS REFLECTED ABOVE, THE ADVISOR AND DISTRIBUTOR VOLUNTARILY WAIVED FEES AND EXPENSES. HAD THE FUND PAID ALL EXPENSES AND THE MAXIMUM DISTRIBUTION FEE BEEN IN EFFECT, THE RATIOS OF EXPENSES AND NET INVESTMENT INCOME TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 38.47%/(32.44%) AND 23%/(16.88%) IN THE PERIODS ENDED JULY 12, 1996, AND SEPTEMBER 30, 1995, RESPECTIVELY. EXPENSE RATIOS REFLECT THE EFFECT OF GROSS EXPENSES PAID INDIRECTLY BY THE FUND. (C) COMMENCEMENT OF OPERATIONS WAS APRIL 10, 1995. (D) ADJUSTED TO AN ANNUAL BASIS. (E) PERIOD FROM OCTOBER 1, 1995 TO JULY 12, 1996. THE FUND DISTRIBUTED ALL ITS NET ASSETS TO SHAREHOLDERS AND CEASED OPERATIONS ON JULY 12, 1996. - -------------------------------------------------------------------------------- INDEPENDENT AUDITORS' REPORT THE BOARD OF DIRECTORS AND SHAREHOLDERS PIPER FUNDS INC.: We have audited the accompanying statement of operations for the period from October 1, 1995 to July 12, 1996, the statements of changes in net assets for the period from April 10, 1995, commencement of operations, to September 30, 1995 and the period from October 1, 1995 to July 12, 1996 and the financial highlights presented in note 6 to the financial statements of Short-Intermediate Bond Fund (a fund within Piper Funds Inc.). These financial statements and the financial highlights are the responsibility of the fund's management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. We conducted our audits 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 the 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. 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 audits provide a reasonable basis for our opinion. In our opinion, the financial statements and the financial highlights referred to above present fairly, in all material respects, the results of operations, the changes in net assets and the financial highlights of Short-Intermediate Bond Fund for the periods stated in the first paragraph above, in conformity with generally accepted accounting principles. As described in note 1 to the financial statements, Short-Intermediate Bond Fund distributed all its net assets and ceased operations on July 12, 1996. KPMG Peat Marwick LLP Minneapolis, Minnesota August 16, 1996 - -------------------------------------------------------------------------------- DIRECTORS AND OFFICERS DIRECTORS David T. Bennett, CHAIRMAN, HIGHLAND HOMES, INC., USL PRODUCTS, INC., KIEFER BUILT, INC., OF COUNSEL, GRAY, PLANT, MOOTY, MOOTY & BENNETT, P.A. Jaye F. Dyer, PRESIDENT, DYER MANAGEMENT COMPANY William H. Ellis, PRESIDENT, PIPER JAFFRAY COMPANIES INC., PIPER CAPITAL MANAGEMENT INCORPORATED Karol D. Emmerich, PRESIDENT, THE PARACLETE GROUP Luella G. Goldberg, DIRECTOR, TCF FINANCIAL, RELIASTAR FINANCIAL CORP., HORMEL FOODS CORP. George Latimer, CHIEF EXECUTIVE OFFICER, NATIONAL EQUITY FUNDS OFFICERS William H. Ellis, CHAIRMAN OF THE BOARD Paul A. Dow, PRESIDENT Robert H. Nelson, VICE PRESIDENT AND TREASURER Susan S. Miley, SECRETARY INVESTMENT ADVISER Piper Capital Management Incorporated 222 SOUTH NINTH STREET, MINNEAPOLIS, MN 55402-3804 CUSTODIAN AND Investors Fiduciary Trust Company TRANSFER AGENT 127 WEST 10TH STREET, KANSAS CITY, MO 64105-1716 LEGAL COUNSEL Dorsey & Whitney LLP 220 SOUTH SIXTH STREET, MINNEAPOLIS, MN 55402 INDEPENDENT KPMG Peat Marwick LLP AUDITORS 4200 NORWEST CENTER, MINNEAPOLIS, MN 55402 -----END PRIVACY-ENHANCED MESSAGE-----