N-30D 1 0001.txt LABORADOR FUND
LABRADOR MUTUAL FUND STATEMENT OF NET ASSETS As of June 30, 2000 (Unaudited) Number Market of Shares Value Common Stocks - 98.9% Banks - 0.7% Firstar Corp. 200 $ 4,200 Wells Fargo & Company 200 7,812 Computers Hardware - 11.0% Hewlett-Packard Company 1,000 124,312 Juniper Hetworks, Inc. * 400 58,225 Computers Systems - 29.2% Cisco Systems Inc.* 2,400 152,550 International Business Machine 700 76,694 Sun Microsystems* 2,800 254,800 Drugs & Healthcare - 17.7% Johnson & Johnson 400 40,000 Medimmune, Inc. * 1,200 88,800 Medtronic, Inc. 1,600 79,700 Merck & Company Inc. 600 45,525 Schering-Plough Corporation 800 40,250 Electric Equipment - 1.7% Agilent Technologies Inc. * 381 29,028 Financial Services - 1.7% CMGI, Inc. 600 27,488 Food & Beverage - 1.3% Coca Cola 300 17,175 Congra, Inc. 200 3,813 Insurance - 3.5% American International Group Inc. 500 58,875 Machinery & Medal Processing - 0.7% Illinois Tool Works 200 11,400 Marketing Service - 4.3% Omicom Group Inc. 800 71,200 Number Market of Shares Value Other Consumer Goods - 6.2% General Electric Company 1,200 $ 61,200 Gillette Company 400 13,700 Proctor & Gamble Company 300 16,800 Xerox Corporation 600 12,000 Other Financials -3.2% Automatic Data Processing, Inc. 1,000 53,561 Pharmaceutical - 4.5% Abbot Laboratories 600 26,475 Pfizer, Inc. 1,000 47,500 Retail - 1.3% Walgreen Company 700 22,269 Semiconductors-Electric - 6.4% Intel Corporation 800 106,950 Software Products - 1.4% Microsoft Corp. * 300 24,000 Telecommunications - 3.9% Lucent Technology 1,100 64,350 ------- Total Common Stocks (Cost $1,006,943) 1,640,652 --------- Money Market - 1.6% ------------------- Firstar Treasury Fund 5.44% (a) (Cost $26,916) 26,916 -------- Total Investments - 100.5% (Cost $1,033,859) 1,667,568 Other Assets and Liabilities, Net - (0.5)% (8,419) ------------------------------------------ ------- Net Assets - 100% $1,659,149 ========== *Non-income producing security. (a) Variable rate security; the coupon rate shown represents the rate at June 30, 2000. The accompanying notes are an integral part of these financial statements.
LABRADOR MUTUAL FUND STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2000 (Unaudited) ASSETS: Investments, at market value (cost $1,033,859) .......... $ 1,667,568 Receivables: Dividends ......................................... 852 ...................................Interest 63 ....Expense Reimbursement by Manager.................. 13,137 Other assets.......................................... 500 ------------- Total assets ......................................... 1,682,120 LIABILITIES: Accrued 12B-1 Fees ..................................... 618 Accrued Administration Fees ............................ 7,137 Accrued Auditing Fees .................................. 1,876 Accrued Custodian Fees ................................. 872 Accrued Fund Accounting Fees ........................... 2,284 Accrued Insurance ...................................... 3,459 Accrued Legal Fees ..................................... 802 Accrued Advisor Fees ................................... 2,367 Acrued Transfer Agent Fees .............................. 3,556 -------- ........................Total liabilities 22,971 ------ NET ASSETS ................................................... $ 1,659,149 ========== Net assets consist of: Paid-in capital ......................................... 1,115,985 Accumulated undistributed net realized loss on investments (90,545) Net unrealized appreciation on ....................................... investments 633,709 Net assets ................................................... $ 1,659,149 ========== Shares of capital stock outstanding (no par value, unlimited shares authorized)............................. 112,288 Net asset value, offering and redemption, price per share ......................... $ 14.78 The accompanying notes are an integral part of these financial statements.
LABRADOR MUTUAL FUND STATEMENT OF OPERATIONS For the six months ended June 30, 2000 (Unaudited) INVESTMENT INCOME: Interest ................................................ $ 543 Dividends ............................................... 3,989 ----- Total investment income ............................ 4,532 EXPENSES: 12B-1 Expense .......................................... 2,028 Administration Expense ................................. 2,118 Auditing Expense ....................................... 377 Custodian Expense ...................................... 2,420 Fund Accounting Expense ................................ 9,075 Insurance Expense....................................... 1,159 Legal Expense .......................................... 252 Management Expense ..................................... 12,169 Postage Expense......................................... 50 Pricing Expense ........................................ 756 Report Printing Expense................................. 403 Miscellaneous Expense .................................. 125 Transfer Agent Expense .................................. 7,560 ------- .................................... Total expenses 38,492 ------ Less: Expense reimbursement from Manager................................(19,243) -------- Total net expenses.......................................... 19,249 NET INVESTMENT LOSS ......................................... (14,717) ---------- REALIZED AND UNREALIZED GAIN .........................................ON INVESTMENTS: Net realized change in investment........................ (17,258) Net change in unrealized appreciation on investments ........................ 77,337 ------- Net gain on investments ................................. 60,079 ------- INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................... $45,362 ======== The accompanying notes are an integral part of these financial statements.
LABRADOR MUTUAL FUND STATEMENTS OF CHANGES IN NET ASSETS Six months Year Ended Ended June 30, 2000 December 31, (Unaudited) 1999 ---------- ---- INCREASE IN NET ASSETS Operations: Net investment loss..................................... $(14,717) $(23,088) Net change in realized appreciation on investments....... (17,258) (33,042) Net change in unrealized appreciation on investments................ 77,337 364,115 ----------- ------- Increase in net assets from operations .................. 45,362 307,985 ----------- ------- Capital share transactions: Proceeds from shares sold ............ 24,967 40,114 Cost of shares repurchased............................... (38,000) (68,500) ---------- ------------ Net decrease in net assets from capital share transactions ......................... (13,033) (28,386) --------- ------------ TOTAL INCREASE IN NET ASSETS ................................. 32,329 279,599 --------- ----------- NET ASSETS: Beginning of period ..................................... 1,626,820 1,347,221 End of period (including accumulated net investment loss of $14, 717 for the period ended June 30, 2000).......... $ 1,659,149 $1,1626,820 ========= ========== OTHER INFORMATION: Share transactions: Sold .................................................... 1,783 3,313 Repurchased ............................................. (2,596) (5,237) ------- ------- NET DECREASE IN SHARES OUTSTANDING .......................... (813) (1,924) ======= ======= The accompanying notes are an integral part of these financial statements.
LABRADOR MUTUAL FUND FINANCIAL HIGHLIGHTS Six Months Ended Year Period June 30, Ended Ended 2000 Dec.31, Dec.31, (Unaudited) 1999 1998(a) ----------- ---- ------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period.......................... $14.38 $11.71 $10.00 Loss from investment operations:.............................. Net investment income loss.............................. (0.13) (0.20) (0.02) Net realized and unrealized gain on investments................................ 0.53 2.87 1.73 ---- ---- Total from investment operations 0.40 2.67 1.71 Net asset value, end of period ............................... $ 14.78 $ 14.38 $11.71 ===== ===== ===== TOTAL RETURN................................................. 2.78% 26.70% 17.10%(c) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period ............................... $1,659,149 $1,626,820 $1,347,221 Ratio of expenses to average net assets: Before reimbursement of expenses by Manager........... 4.80%(b) 5.33% 5.78% (b) After reimbursement of expenses by Manager ............ 2.40%(b) 2.40% 2.40% (b) Ratio of net investment income to average net assets: Before reimbursement of expenses by Manager ........... (4.23)%(b) (4.55)% (4.80)%(b) After reimbursement of expenses by Manager ............ (1.83)%(b) (1.59)% (0.81)%(b) Portfolio turnover ...................................... 33.04% 9.56% 0.00% (a) For the period September 24, 1998 (inception date of fund) to December 31,1998. (b) Annualized. (c) For the period ended December 31, 1998 total return was revised to reflect actual total return.
NOTES TO FINANCIAL STATEMENTS ----------------------------- (Unaudited) Note 1 - General The Labrador Mutual Fund, (the "Trust") which has a similarly named portfolio called the Labrador Mutual Fund ("the Fund") is a mutual fund that invests principally in securities of companies which, in the opinion of the Fund's management, conduct their business in a socially responsible manner. Capital growth and current income are the primary and secondary investment objectives. Investment advisory and management services are provided to the Fund by Labrador Investment Advisers, Inc., (the "Manager"). Note 2 - Significant Accounting Policies The following is a summary of the significant accounting policies followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles. A) Security Valuations Shares of the Fund are sold on a continuous basis. Net asset value per share is determined as of the close of regular trading on the floor of the New York Stock Exchange (currently 4:00 p.m., New York time) on each business day. The Fund's investments are valued based on market value or, where market quotations are not readily available, based on fair value as determined in good faith by, or in accordance with procedures established by, the Fund's Board of Trustees. The Fund's net asset value per share is determined by dividing the sum of the market value of all securities and all other assets of the Fund, less liabilities of the Fund, by the total number of the Fund's shares outstanding. B) Securities Transactions and Investment Income Securities transactions are recorded on a trade basis. The cost of securities sold is determined using the first-in-first-out method. Interest income is recorded on the accrual basis and dividend income is recorded on the ex-dividend date. C) Dividends and Distributions to Shareholders The Fund ordinarily pays dividends from its net investment income and distributes net realized securities gains, if any, once a year, but it may make distributions on a more frequent basis to comply with the distribution requirements of the Code, in all events in a manner consistent with the provisions of the 1940 Act. Dividends are automatically reinvested in additional Fund shares at net asset value, unless the shareholder has elected to receive payment in cash. All expenses are accrued daily and deducted before declaration of dividends to investors. However, to the extent that net realized gains of the Fund could be reduced by any capital loss carry-overs, such gains will not be distributed. D) Federal Income Taxes The Fund has elected to be treated as a "regulated investment company" under Sub-chapter M of the Internal Revenue Code so long as such qualification is in the best interest of its shareholders. Such qualifications relevies the Fund of any liability for Federal income tax to the extent its earnings are distributed in accordance with applicable provisions of the Code. The Fund intends to make sufficient distributions prior to the end of each calendar year to avoid liability for a 4.0% Federal excise tax on undistributed income. Accordingly, no provisions for federal income taxes have been made in the accompanying financial statements. The Fund intends to utilize provisions of the federal income tax laws which allows it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. NOTES TO FINANCIAL STATEMENTS ----------------------------- (Unaudited) D) Federal Income Taxes Net realized gains or losses may differ for financial and tax reporting purposes for the Fund primarily as a result of losses from wash sales which are not recognized for tax purposes until the corresponding shares are sold. E) Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 3 - Agreements and Other Transactions with Affiliates Under a plan adopted by the Fund's Board of Trustees pursant to Rule 12b-1 under the 1940 Act (the "Plan"), the Fund pays Unified Management Corporation a shareholder servicing and distribution fee at the annual rate of 0.25% of the average daily net assets of the Fund. Such fee will be used in its entirety by Unified Management Corporation to make payments for administration, shareholder services and distribution assistance, including, but not limited to: (i) compensation to securities dealers and other organizations (each, a "Service Organization" and collectively, the "Service Organizations"), for providing distribution assistance with respect to assets invested in the Fund, (ii) compensation to Service Organization for providing administration, accounting and other shareholder services with respect to Fund shareholders, and (iii) otherwise promoting the sale of shares of the Fund, including paying for the preparation of advertising and sales literature and the printing and distribution of such promotional materials to prospective investors. The fees paid to Unified Management Corporation under the Plan are payable without regard to actual expenses incurred. The Fund understands that third parties also may charge fees to their clients who are beneficial owners of Fund shares in connection with their client accounts. These fees would be in addition to any amounts which may be received by them from Unified Management Corporation under the Plan. The Board of Trustees provides broad supervision over the affairs of the Fund. Pursuant to a Management Agreement between the Fund and the Manager and subject to the authority of the Board of Trustees, the Manager manages the Fund's investments and is responsible for the overall management of the business affairs of the Fund. The Manager continually conducts investment research and supervision for the Fund and is responsible for the purchase or sale of portfolio instruments, for which it receives an annual fee from the Fund. The Fund is authorized to pay the Manager a monthly fee equal to an annual average rate of 1.50% of its average daily net assets, minus the amount by which the Fund's total expenses (excluding brokerage, taxes, interest and extraordinary expenses) exceeds 2.40%. The Manager has undertaken, until such time as it gives investors 60 days notice to the contrary, to waive it's investment advisory fee to the extent Total Fund Operating Expenses (excluding brokerage, taxes, interest and extraordinary expenses) exceed 2.40%. At June 30, 2000 the Manager owed the Fund $13,137 in net reimbursement. Note 4- Investment Transactions For the six months ended June 30, 2000, purchases and sales of of investment securities, excluding short-term investments, were $262,119 and $287,796 respectively. NOTES TO FINANCIAL STATEMENTS ----------------------------- (Unaudited) Note 5- Unrealized Appreciation (Depreciation) At June 30, 2000, the composition of gross unrealized appreciation (depreciation) of investment securities is as follows: Appreciation Depreciation Net Appreciation The Labrador Mutual Fund $ 716,515 ($82,806) $ 633,709 Note 6- Shares of Beneficial Interest The Fund is authorized to issue an unlimited number of shares of beneficial interest with no par value. At June 30, 2000, Labrador Investment Adviser and its affiliates owned 2,167 shares of the Fund.