-----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, QBCH+YVoi1qi5fHLN8UT50FnPBTqCom5xtLc4BAgfIS/p/1HQ5f58ZNJ82MMUk+l OKBaL2LFLYYX8aeVzEprmQ== 0000912057-96-008734.txt : 19960510 0000912057-96-008734.hdr.sgml : 19960510 ACCESSION NUMBER: 0000912057-96-008734 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960509 SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANS ADVISER FUNDS INC CENTRAL INDEX KEY: 0000947789 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09068 FILM NUMBER: 96558609 BUSINESS ADDRESS: STREET 1: 500 EAST MAIN ST CITY: BOWLING GREEN STATE: KY ZIP: 42101 BUSINESS PHONE: 5027457525 MAIL ADDRESS: STREET 1: 500 EAST MAIN ST CITY: BOWLING GREEN STATE: KY ZIP: 42102-9001 N-30D 1 N-30D [LOGO] Growth/Value Fund Shareholder Inquiries: Aggressive Growth Fund Forum Financial Corp. Intermediate Bond Fund P.O. Box 446 Kentucky Tax-Free Fund Portland, Maine 04112 Money Market Fund 207-879-0001 800-811-8258
- ----------------------------------------- April 12, 1996
Dear Shareholder: Today there are about as many mutual funds as there are publicly traded common stocks. Total assets invested in funds now exceed $2.75 trillion. In the past ten years, the growth and diversity of funds has been eye-catching. In the wake of this growth, why launch the Trans Adviser Funds, yet another of many? Most successful mutual fund endeavors begin with a sound investment strategy. We believe that Trans Adviser has the right combination of targeted investment strategies divided among its five individual funds. The Trans Adviser Funds can therefore provide investors with ample asset allocation vehicles for their investment objectives. In our view, a satisfied shareholder is one who attains realistic investment objectives within the limitations of rising and falling capital markets. Trans Adviser seeks to achieve these objectives with an investment management team that produces quality fundamental research and converts its research conclusions into the management of each fund. Our money managers have a combination of qualifications, experience, and commitment that is second to none among all mutual fund manager advisors. Economic, sector, and company analysis are an integral part of the process that we believe is capable of yielding competitive, risk-adjusted returns without undue risk. We are pleased to present the semi-annual report for Trans Adviser Funds, Inc. for the period ending February 29, 1996. We appreciate this opportunity to review the achievements of our initial operations. We believe the best possible shareholder is a well-informed shareholder. We therefore encourage you to review this report. Should you have any questions regarding your account, please contact your broker-dealer, trust department, or our shareholder servicing agent, Forum Financial Corp. We also invite you to contact a representative of the funds at our Louisville, Kentucky or Nashville, Tennessee offices. Today, the assets invested in the Trans Adviser family of funds exceed $100 million. The Funds are distributed through nine independent broker dealers. In the coming months, we look forward to continued growth, and will strive for superior performance for your investment. Thank you for choosing to invest in Trans Adviser Funds and for the support you have shown the Trans Adviser family of mutual funds in its young life. [LOGO] [LOGO] GORDON B. DAVIDSON THOMAS A. TRANTUM Chairman of the Board President
GROWTH/VALUE FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
SECURITY SHARES DESCRIPTION VALUE - ---------- ---------------------------------- ------------ COMMON STOCK (88.4%): AMUSEMENT AND RECREATION SERVICES (7.0%): 7,500 Harrah's Entertainment, Inc.*..... $ 203,437 2,000 ITT Corporation*.................. 120,750 7,500 Promus Hotel Corporation*......... 195,000 ------------ 519,187 ------------ AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS (2.6%): 7,500 Autozone, Inc.*................... 193,125 ------------ BUSINESS SERVICES (4.1%): 10,000 ADT Ltd.*......................... 147,500 3,000 Sun Microsystems, Inc.*........... 157,500 ------------ 305,000 ------------ CHEMICALS AND ALLIED PRODUCTS (6.4%): 2,000 Bristol-Myers Squibb Company...... 170,250 2,000 Merck & Company, Inc.............. 132,500 3,000 Schering-Plough Corporation....... 168,375 ------------ 471,125 ------------ COMMUNICATIONS (3.5%): 7,500 Tele-Communications, Inc.*........ 157,500 5,000 US West Media Group*.............. 104,375 ------------ 261,875 ------------ DEPOSITORY INSTITUTIONS (11.0%): 3,500 BankAmerica Corporation........... 249,375 7,000 First Chicago NBD Corporation..... 303,625 4,000 First Tennessee National Corporation..................... 126,000 5,000 Signet Banking Corporation........ 130,000 ------------ 809,000 ------------ EATING AND DRINKING PLACES (2.5%): 3,000 McDonald's Corporation............ 150,000 2,000 Morrison Restaurants, Inc......... 33,500 ------------ 183,500 ------------ ELECTRICAL EQUIPMENT (2.9%): 5,000 AMP, Inc.......................... 213,125 ------------ FOOD STORES (1.3%): 2,500 Kroger Company*................... 92,812 ------------ FOOD AND KINDRED PRODUCTS (1.1%): 15,000 Monterey Pasta Company*........... 78,750 ------------ SECURITY SHARES DESCRIPTION VALUE - ---------- ---------------------------------- ------------ GENERAL MERCHANDISE STORES (2.5%): 4,000 Sears, Roebuck and Company........ $ 181,500 ------------ HEALTH SERVICES (10.8%): 5,000 Living Centers of America, Inc.*.. 202,500 3,000 Columbia HCA Healthcare Corporation..................... 164,250 2,345 Healthsouth Rehabilitation Corporation*.................... 82,075 1,000 Quorum Health Group, Inc.*........ 24,625 6,000 Tenet Healthcare Corporation*..... 134,250 5,000 Vencor, Inc.*..................... 186,875 ------------ 794,575 ------------ INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER EQUIPMENT (2.3%): 8,000 Western Digital Corporation*...... 167,000 ------------ INSURANCE CARRIERS (1.4%): 2,000 ITT Hartford Group, Inc........... 103,000 ------------ MEASURING, ANALYZING, AND CONTROLLING INSTRUMENTS (2.9%): 3,000 Eastman Kodak Company............. 214,500 ------------ MISCELLANEOUS MANUFACTURING INDUSTRIES (0.7%): 2,000 ITT Industries, Inc............... 52,500 ------------ MOTION PICTURES (1.8%): 2,000 The Walt Disney Company........... 131,000 ------------ NONDEPOSITORY CREDIT INSTITUTIONS (4.6%): 3,000 American Express Company.......... 138,000 7,500 Capital One Financial Corporation..................... 200,625 ------------ 338,625 ------------ PHARMECEUTICAL PREPARATIONS (2.7%): 2,000 American Home Products Corporation..................... 197,000 ------------ TRANSPORT EQUIPMENT (2.8%): 2,500 Boeing Company.................... 202,812 ------------ TRANSPORTATION BY AIR (3.3%): 8,000 Southwest Airlines Company........ 246,000 ------------
See notes to financial statements. 2 TRANS ADVISER FUNDS, INC. GROWTH/VALUE FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
SECURITY SHARES DESCRIPTION VALUE - --------- ------------------------------ ---------- WHOLESALE TRADE--DURABLE GOODS (10.2%): 4,000 Arrow Electronics, Inc.*...... $ 197,000 4,000 Avnet, Inc.................... 199,500 2,500 Lockheed Martin Corporation... 190,625 7,000 Sybron International Corporation-Wisconsin*...... 162,750 ---------- 749,875 ---------- Total Common Stock (cost $5,914,343)...................... 6,505,886 ---------- SECURITY SHARES DESCRIPTION VALUE - --------- ------------------------------ ---------- CASH MANAGEMENT ACCOUNTS (11.6%): 427,717 1784 U.S. Treasury Money Market Fund................. $ 427,717 427,084 Forum Daily Assets Treasury Fund........................ 427,084 ---------- Total Cash Management Accounts (cost $854,801)........................ 854,801 ---------- Total Investments (100.0%) (cost $6,769,144)...................... $7,360,687 ---------- ----------
*Non-income producing security See notes to financial statements. 3 TRANS ADVISER FUNDS, INC. AGGRESSIVE GROWTH FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
SECURITY SHARES DESCRIPTION VALUE - ---------- ---------------------------------- ------------ COMMON STOCK (86.6%): AMUSEMENT AND RECREATION SERVICES (9.3%): 3,000 Harrah's Entertainment, Inc.*..... $ 81,375 4,000 Promus Hotel Corporation*......... 104,000 ------------ 185,375 ------------ BUSINESS SERVICES (9.1%): 5,000 Cerplex Group*.................... 31,250 2,000 Landmark Graphics Corporation*.... 45,000 2,000 Sun Microsystems, Inc.*........... 105,000 ------------ 181,250 ------------ COMMUNICATIONS (2.1%): 2,000 US West Media Group*.............. 41,750 ------------ DEPOSITORY INSTITUTIONS (6.7%): 1,000 BankAmerica Corporation........... 71,250 2,000 First Tennessee National Corporation..................... 63,000 ------------ 134,250 ------------ EATING AND DRINKING PLACES (4.9%): 2,000 Quality Dining, Inc.*............. 57,000 5,000 Shoney's, Inc.*................... 41,875 ------------ 98,875 ------------ FOOD STORES (0.9%): 500 Kroger Company*................... 18,562 ------------ FOOD AND KINDRED PRODUCTS (1.3%): 5,000 Monterey Pasta Company*........... 26,250 ------------ GENERAL MERCHANDISE STORES (2.6%): 2,000 Consolidated Stores Corporation*.................... 52,000 ------------ HEALTH SERVICES (12.5%): 2,000 Living Centers of America, Inc.*.. 81,000 2,000 Quorum Health Group, Inc.*........ 49,250 2,000 Tenet Healthcare Corporation*..... 44,750 2,000 Vencor, Inc.*..................... 74,750 ------------ 249,750 ------------ HOLDING AND OTHER INVESTMENT OFFICES (1.5%): 1,000 Felcor Suite Hotels, Inc.......... 30,625 ------------ HOME FURNITURE, FURNISHINGS, AND EQUIPMENT STORES (2.5%): 2,000 Movie Gallery, Inc.*.............. 49,500 ------------ SECURITY SHARES DESCRIPTION VALUE - ---------- ---------------------------------- ------------ INDUSTRIAL AND COMMERCIAL MACHINERY AND COMPUTER EQUIPMENT (6.6%): 6,000 Smart Modular Technologies*....... $ 90,750 2,000 Western Digital Corporation*...... 41,750 ------------ 132,500 ------------ MISCELLANEOUS RETAIL (1.7%): 2,000 Friedman's, Inc. Class A*......... 33,500 ------------ NONDEPOSITORY CREDIT INSTITUTIONS (2.7%): 2,000 Capital One Financial Corporation..................... 53,500 ------------ OIL AND GAS EXTRACTION (5.6%): 10,000 Pride Petroleum Services, Inc.*... 111,875 ------------ PROFESSIONAL SERVICES(5.7%): 6,000 SCB Computer Technology, Inc.*.... 114,000 ------------ TRANSPORTATION (3.0%): 3,000 United Transnet Inc.*............. 60,375 ------------ TRANSPORTATION BY AIR (3.1%): 2,000 Southwest Airlines Company........ 61,500 ------------ TRANSPORTATION SERVICES (2.5%): 5,000 Simon Transportation Services*.... 50,000 ------------ WHOLESALE TRADE--DURABLE GOODS (2.3%): 2,000 Sybron International Corporation-Wisconsin*.......... 46,500 ------------ Total Common Stock (cost $1,590,243)........................... 1,731,937 ------------ CASH MANAGEMENT ACCOUNTS (13.4%): 133,497 1784 U.S. Treasury Money Market Fund............................ 133,497 133,873 Forum Daily Assets Treasury Fund............................ 133,873 ------------ Total Cash Management Accounts (cost $267,370)............................. 267,370 ------------ Total Investments (100.0%) (cost $1,857,613)........................... $ 1,999,307 ------------ ------------
*Non-income producing security See notes to financial statements. 4 TRANS ADVISER FUNDS, INC. INTERMEDIATE BOND FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- COLLATERALIZED MORTGAGE OBLIGATIONS (10.3%): $ 300,000 Federal Home Loan Mortgage Corporation, Series 1072, Class G, 7.00%, due 5/15/06...................... $ 304,658 800,000 Federal Home Loan Mortgage Corporation, Series 1720, Class E, 7.50%, due 12/15/09..................... 816,423 ------------- Total Collateralized Mortgage Obligations (cost $1,128,875).......................... 1,121,081 ------------- DISCOUNT NOTES--AGENCY (13.5%): 76,000 Federal Farm Credit Bank, 5.24% yield, due 3/1/96............ 76,000 302,000 Federal Farm Credit Bank, 5.24% yield, due 3/5/96............ 301,827 850,000 Federal Home Loan Mortgage Corporation, 5.42% yield, due 3/1/96....................... 850,000 245,000 Federal National Mortgage Association, 5.31% yield, due 3/6/96....................... 244,822 ------------- Total Discount Notes--Agency (cost $1,472,649).......................... 1,472,649 ------------- FIXED RATE BONDS--CORPORATE (57.9%): 686,000 Alabama Power Company, 8.30%, due 7/1/22................... 706,825 400,000 Anheuser Busch Companies, Inc., 7.00%, due 9/1/05............ 406,071 140,000 Anheuser-Busch Companies, Inc., 8.75%, due 12/01/99.......... 152,870 250,000 B.P. America, 6.50%, due 12/15/99..................... 252,470 250,000 Baltimore Gas & Electric Company, 5.125%, due 4/15/96...................... 249,854 50,000 Berkley W.R. Corporation, 9.875%, due 5/15/08.......... 61,325 55,000 The Chase Manhattan Corporation, 8.00%, due 5/15/04...................... 57,110 135,000 Citicorp, 10.50%, due 2/1/16... 137,439 140,000 Commonwealth Edison Company, 9.50%, due 5/1/16............ 147,285 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE BONDS--CORPORATE, CONTINUED: $ 250,000 Florida Power & Light Company, 7.875%, due 1/1/07........... $ 256,681 160,000 Florida Power & Light Company, 8.00%, due 8/25/22........... 166,109 100,000 Ford Motor Credit Company, 5.83%, due 6/29/98........... 99,876 160,000 Ford Motor Credit Company, 7.50%, due 1/15/03........... 168,089 160,000 GTE of Southeast, 8.00%, due 12/3/01...................... 162,792 69,000 Georgia Power Company First Mortgage Bonds, 7.95%, due 2/1/23....................... 69,866 250,000 Greyhound Financial Corporation, 7.82%, due 1/27/03...................... 264,024 300,000 Inco Ltd., 9.60%, due 6/15/22.. 333,343 75,000 Jersey Central Power & Light Company, 9.20%, due 7/1/21... 84,962 46,000 Kaiser Permanente, 9.55%, due 7/15/05...................... 55,434 56,000 Kraft Inc., 8.50%, due 2/15/17...................... 58,427 200,000 Michigan Bell Telephone Company, 6.375%, due 2/1/05....................... 196,051 60,000 Pacific Gas & Electric Company, 6.625%, due 6/1/00........... 59,778 419,000 Pennsylvania Power & Light Company, 9.25%, due 10/1/19...................... 462,579 120,000 Public Service Electric and Gas Company, 8.75%, due 11/1/21...................... 130,044 35,000 Rohm & Haas Company, 9.80%, due 4/15/20...................... 44,780 50,000 Sara Lee Corporation, 8.75%, due 5/15/16.................. 52,517 200,000 Southern California Edison, 7.375%, due 12/15/03......... 204,999 85,000 Southwestern Public Service Company, 8.20%, due 12/1/22...................... 90,789
See notes to financial statements. 5 TRANS ADVISER FUNDS, INC. INTERMEDIATE BOND FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE BONDS--CORPORATE, CONTINUED: $ 60,000 U.S. Leasing International, 6.625%, due 5/15/03.......... $ 60,082 150,000 US Life Corporation, 9.15%, due 6/15/99...................... 151,292 130,000 Union Electric Company, 8.00%, due 12/15/22................. 136,143 500,000 Unocal Corporation, 6.70%, due 10/15/07..................... 492,086 250,000 Washington Gas Light Company, 6.50%, due 1/14/97........... 252,057 65,000 Wisconsin Electric Power Company, 7.75%, due 1/15/23...................... 66,250 ------------- Total Fixed Rate Bonds--Corporate (cost $6,314,487).......................... 6,290,299 ------------- FIXED RATE NOTES--AGENCY (13.3%): 500,000 Federal Home Loan Bank, 6.62%, due 12/6/00.................. 497,542 450,000 Federal Home Loan Bank, 8.25%, due 4/4/05................... 451,262 150,000 Federal National Mortgage Association, 6.17%, due 12/2/03...................... 144,793 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE NOTES--AGENCY, CONTINUED: $ 265,000 Tennessee Valley Authority, 6.875%, due 1/15/02.......... $ 268,887 50,000 Tennessee Valley Authority, 6.875%, due 8/1/02........... 50,620 30,000 Tennessee Valley Authority, 8.05%, due 7/15/24........... 29,851 ------------- Total Fixed Rate Notes--Agency (cost $1,452,300).......................... 1,442,955 ------------- TREASURY NOTES (4.7%): 500,000 U.S. Treasury Notes, 6.50%, due 8/15/05...................... 511,875 ------------- Total Treasury Notes (cost $510,156)............................ 511,875 ------------- CASH MANAGEMENT ACCOUNTS (0.3%): 35,761 Forum Daily Assets Treasury Fund......................... 35,763 ------------- Total Cash Management Accounts (cost $35,763)............................. 35,763 ------------- Total Investments (100.0%) (cost $10,914,230)......................... $ 10,874,622 ------------- -------------
See notes to financial statements. 6 TRANS ADVISER FUNDS, INC. KENTUCKY TAX-FREE FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- MUNICIPAL BONDS (100.0%): AIRPORT REVENUE (5.5%): $ 500,000 Kenton County Airport Revenue, 8.75%, due 3/1/15............ $ 533,680 50,000 Lexington-Fayette Urban County, Kentucky Airport Corporation First Mortgage Revenue, 7.75%, due 4/1/08............ 55,125 435,000 Louisville & Jefferson County, Kentucky Airport Authority Revenue, 5.25%, due 7/1/09... 427,931 ------------- Total Airport Revenue (cost $1,011,246).......................... 1,016,736 ------------- ECONOMIC DEVELOPMENT REVENUE (15.9%): 100,000 Covington, Kentucky Municipal Properties Corporation Revenue, 8.25%, due 8/1/10... 112,375 360,000 Kentucky State Property & Building Community Revenue, 5.05%, due 5/1/05............ 366,750 65,000 Kentucky State Property & Building Community Revenue, 6.00%, due 8/1/97............ 67,031 70,000 Kentucky State Property & Building Community Revenue, 6.50%, due 12/1/99........... 75,425 455,000 Kentucky State Property & Building Project #51, 6.30%, due 8/1/01................... 494,812 100,000 Kentucky State Turnpike Authority Economic Development Revenue, 6.50%, due 7/1/07................... 113,875 245,000 Kentucky State Turnpike Authority Economic Development Revenue, 7.25%, due 5/15/10.................. 275,931 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- ECONOMIC DEVELOPMENT REVENUE, CONTINUED: $ 150,000 Kentucky State Turnpike Authority Economic Development Revenue, Revitalization Projects, 7.00%, due 5/15/99........... $ 163,125 750,000 Louisville & Jefferson County, Kentucky Visitors & Convention Commission, 6.625%, due 7/1/15........... 727,500 500,000 State of Kentucky Property & Buildings Common Revenue, Project #57, AMBAC insured, 5.50%, due 11/1/15........... 498,750 50,000 State of Kentucky Property & Buildings Common Revenue, Project #27, Prerefunded 11/1/96 at 102, collateralized in U.S. Government securities, 7.10%, due 5/1/08................... 52,181 ------------- Total Economic Development Revenue (cost $2,940,928).......................... 2,947,755 ------------- EDUCATION FACILITIES REVENUE (18.5%): 350,000 Fayette County Kentucky School Building Revenue, 5.25%, due 10/1/09...................... 348,250 365,000 Fayette County Kentucky School Building Revenue, 5.25%, due 10/1/10...................... 359,981 200,000 Hopkins County, Kentucky School District Finance Corporation School Building Revenue, 5.70%, due 6/1/06............ 211,750 495,000 Jefferson County, Kentucky School District Finance Corporation School Building Revenue, 4.875%, due 1/1/11....................... 467,775 750,000 Jefferson County, Kentucky School District Finance Corporation School Building Revenue, MBIA Insured, 5.00%, due 2/1/07................... 752,812
See notes to financial statements. 7 TRANS ADVISER FUNDS, INC. KENTUCKY TAX-FREE FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- EDUCATION FACILITIES REVENUE, CONTINUED: $ 70,000 Lexington-Fayette Urban County Government, Kentucky School Buildings Revenue, 6.80%, due 10/1/01...................... $ 78,050 480,000 Oldham County, Kentucky School District Finance Corporation School Building, 5.50%, due 7/1/15....................... 393,000 785,000 Pendleton County, Kentucky School District Finance Corporation School Building Revenue, 5.05%, 12/1/15...... 735,938 70,000 University of Louisville, Kentucky Revenue, Series G, 6.25%, due 5/1/99............ 72,887 ------------- Total Education Facilities Revenue (cost $3,417,998).......................... 3,420,443 ------------- GENERAL OBLIGATIONS--BOND BANK (1.6%): 305,000 Fern Creek, Kentucky Fire Protection District Holding Company Revenue, 5.75%, 1/15/14...................... 297,375 ------------- Total General Obligations--Bond Bank (cost $295,140)............................ 297,375 ------------- HEALTH CARE REVENUE (18.1%): 1,035,000 Kentucky Economic Development Finance Authority Hospital Revenue, Baptist Hospital, 7.20%, due 9/1/99............ 1,157,906 1,600,000 Kentucky Economic Development Finance Authority Health Facilities Revenue, The Medical Center at Scottsville Project, Series A, 9.00%, due 11/1/24...................... 1,704,000 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- HEALTH CARE REVENUE, CONTINUED: $ 500,000 Kentucky Economic Development Finance Authority Hospital Facilities Revenue, Baptist Healthcare System Project, MBIA insured, 5.00%, due 8/15/24...................... $ 453,750 40,000 McCracken County, Kentucky Revenue, Lourdes Hospital Inc., 6.00%, due 11/1/96..... 40,679 ------------- Total Health Care Revenue (cost $3,326,574).......................... 3,356,335 ------------- HOUSING REVENUE (11.5%): 750,000 Boone County, Kentucky Public Properties Corporation Revenue, 5.15%, due 12/1/12...................... 725,625 475,000 Boone County, Kentucky Public Properties Corporation Revenue, 5.125%, due 12/1/10...................... 461,938 300,000 Florence, Kentucky Public Property Corporation, 5.20%, due 3/1/13................... 288,375 270,000 Greater Kentucky Housing Assistance Corporation Mortgage Revenue, FHA/ Section 8 Assisted Project, Series A, MBIA/FHA insured, 6.25%, due 7/1/22............ 272,025 100,000 Jefferson County, Kentucky Capital Projects Corporation Revenue, 0.000%, due 8/15/99...................... 85,249 190,000 Kentucky Housing Corporation Housing Revenue, Series B, 5.75%, due 8/1/05............ 191,187 100,000 Kentucky State Property & Building Commission Revenue Project 30, 7.00%, 12/1/96... 102,593 ------------- Total Housing Revenue (cost $2,127,618).......................... 2,126,992 -------------
See notes to financial statements. 8 TRANS ADVISER FUNDS, INC. KENTUCKY TAX-FREE FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- INDUSTRIAL DEVELOPMENT REVENUE (2.8%): $ 500,000 Clark County, Kentucky Industrial Building Revenue, Southern Wood Project, 7.00%, due 12/1/08.................. $ 515,000 ------------- Total Industrial Development Revenue (cost $512,207)............................ 515,000 ------------- JAIL FACILITIES REVENUE (0.6%): 100,000 Kentucky Local Correctional Facilities Construction Authority Revenue, 7.00%, due 11/1/97...................... 107,250 ------------- Total Jail Facilities Revenue (cost $106,574)............................ 107,250 ------------- OTHER REVENUE (10.1%): 500,000 Kentucky Higher Education Student Loan Corporation Insured Student Loan Revenue, 6.40%, due 6/1/00............ 536,875 350,000 Kentucky Higher Education Student Loan Corporation Insured Student Loan Revenue, Series D, 6.35%, due 12/1/97...................... 361,375 300,000 Lexington-Fayette Urban County Public Facilities Revenue, 7.90%, due 7/1/06............ 322,500 475,000 Lexington-Fayette Urban County Government, Kentucky Sewer System Revenue, 6.85%, due 7/1/98....................... 511,219 120,000 Puerto Rico Public Buildings Authority Guaranteed Revenue, Series K, collateralized in U.S. Government securities, 6.875%, due 7/1/21........... 138,600 ------------- Total Other Revenue (cost $1,865,134).......................... 1,870,569 ------------- FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- POLLUTION CONTROL REVENUE (10.6%): $ 295,000 Ashland, Kentucky Solid Waste Revenue, 7.20%, callable 10/1/01 @ 102., 7.20%, due 10/1/01...................... $ 313,806 100,000 Kentucky State Pollution Abatement & Water Reserve Finance Authority Revenue, Escrowed in U.S. Government securities, 7.40%, due 8/1/02....................... 116,250 235,000 Jefferson County, Kentucky Pollution Control Revenue, Louisville Gas & Electric Company PJ-A, 7.45%, due 6/15/15...................... 259,969 500,000 Kentucky Infrastructure Authority Revenue, Wastewater Revolving Fund Project, Series D, 5.50%, due 6/1/12....................... 498,125 50,000 Louisville & Jefferson County, Kentucky Sewer District, Sewer & Drain System, 6.50%, due 5/15/00.................. 54,063 500,000 Meade County Kentucky Pollution Control Revenue, 6.00%, due 7/1/96....................... 503,560 200,000 Trimble County, Kentucky Pollution Control Revenue Unrefunded Balance Series A, 7.625%, due 11/1/20.......... 224,500 ------------- Total Pollution Control Revenue (cost $1,597,352).......................... 1,970,273 ------------- TRANSPORTATION REVENUE (3.5%): 100,000 Kentucky State Turnpike Authority Resource Recovery, 6.00%, due 7/1/09............ 100,125 605,000 Kentucky State Turnpike Authority Resource Recovery, 6.125%, due 7/1/97........... 649,619 ------------- Total Transportation Revenue (cost $751,328)............................ 749,744 -------------
See notes to financial statements. 9 TRANS ADVISER FUNDS, INC. KENTUCKY TAX-FREE FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- UTILITIES REVENUE (1.3%): $ 200,000 Owensboro, Kentucky Electric Light & Power Revenue, Deferred Current Interest, Series A, 0.00% converting on 1/1/96 to 10.25%, due 1/1/09, Prerefunded 1/1/00 at 102.... $ 237,753 ------------- Total Utilities Revenue (cost $239,611)............................ 237,753 ------------- Total Investments (100.0%) (cost $18,551,723)......................... $ 18,616,225 ------------- -------------
See notes to financial statements. 10 TRANS ADVISER FUNDS, INC. MONEY MARKET FUND SCHEDULE OF INVESTMENTS FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- DISCOUNT NOTES--AGENCY (47.2%): $ 879,000 Federal Farm Credit Bank, 5.22% yield, due 3/1/96............ $ 879,000 2,645,000 Federal Farm Credit Bank, 5.22% yield, due 3/7/96............ 2,642,739 3,090,000 Federal Farm Credit Bank, 5.25% yield, due 3/13/96........... 3,084,690 88,000 Federal Farm Credit Bank, 5.24% yield, due 3/5/96............ 87,950 1,895,000 Federal Home Loan Bank, 5.23% yield, due 3/4/96............ 1,894,190 3,500,000 Federal Home Loan Bank, 5.24% yield, due 3/6/96............ 3,497,497 4,170,000 Federal Home Loan Mortgage Corporation, 5.42% yield, due 3/1/96....................... 4,170,000 5,410,000 Federal National Mortgage Association, 5.21% yield, due 3/4/96....................... 5,407,690 1,635,000 Federal National Mortgage Association, 5.21% yield, due 3/1/96....................... 1,635,000 3,255,000 Federal National Mortgage Association, 5.22% yield, due 3/8/96....................... 3,251,753 710,000 Federal National Mortgage Association, 5.32% yield, due 3/6/96....................... 709,487 ------------- Total Discount Notes--Agency................. 27,259,996 ------------- FIXED RATE NOTES--AGENCY (4.3%): 500,000 Federal Home Loan Bank, 8.10%, due 3/25/96.................. 500,764 2,000,000 Tennessee Valley Authority, 4.375%, due 3/4/96........... 1,999,773 ------------- Total Fixed Rate Notes--Agency............... 2,500,537 ------------- FIXED RATE NOTES--CORPORATE (46.7%): 100,000 Albertson's, Inc., 4.90%, due 3/22/96...................... 99,960 500,000 American Express Credit Corporation, 7.75%, due 3/1/97....................... 511,848 100,000 American General Finance Corporation, 5.00%, due 6/15/96...................... 99,738 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE NOTES--CORPORATE, CONTINUED: $ 70,000 Associates Corporation of North America, 6.875%, due 1/15/97...................... $ 70,806 165,000 Associates Corporation of North America, 7.50%, due 10/15/96..................... 166,743 55,000 Bankers Trust New York Corporation, 7.25%, due 11/1/96...................... 55,543 190,000 Bausch & Lomb, Inc., 6.80%, due 12/12/96..................... 191,484 100,000 British Petroleum America, Inc., 10.15%, due 3/15/96.... 100,151 140,000 Burlington Northern Corporation, 9.00%, due 4/1/96....................... 146,561 190,000 CIGNA Corporation, 8.00%, due 9/1/96....................... 192,263 125,000 CIT Group Holdings, Inc., 4.75%, due 3/15/96........... 124,932 300,000 CNA Financial Corporation, 8.625%, due 3/1/96........... 300,000 479,000 CSX Corporation, 8.40%, due 8/1/96....................... 484,118 80,000 Caterpillar Financial Services Corporation, 4.94%, due 4/30/96...................... 79,862 20,000 The Chase Manhattan Corporation, 7.875%, due 1/15/97...................... 20,381 176,000 Citicorp, 8.75%, due 11/1/96... 179,357 250,000 Commercial Credit Company, 8.00%, due 9/1/96............ 252,484 500,000 Commercial Credit Company, 8.125%, due 3/1/97........... 512,875 499,204 Conrail Inc., 5.01%, due 4/1/96....................... 498,808 1,214,000 Dean Witter Discover & Company, 5.00%, due 4/1/96............ 1,213,103 50,000 Deere & Company, 8.25%, due 6/1/96....................... 50,316 667,000 Dupont Corporation, 8.45%, due 10/15/96..................... 678,859 430,000 Exxon Capital Corporation, 7.875%, due 4/15/96.......... 431,051
See notes to financial statements. 11 TRANS ADVISER FUNDS, INC. MONEY MARKET FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE NOTES--CORPORATE, CONTINUED: $ 25,000 Farmers Group, 8.25%, due 7/15/96...................... $ 25,238 500,000 First Interstate Bancorp, 10.50%, due 3/1/96........... 500,000 150,000 Ford Capital B.V., 9.00%, due 6/1/96....................... 151,189 95,000 Ford Motor Credit Corporation, 7.875%, due 1/15/97.......... 96,837 45,000 Ford Motor Credit Corporation, 7.875%, due 10/15/96......... 45,506 492,000 Ford Motor Credit Corporation, 8.00%, due 10/1/96........... 497,906 1,040,000 Ford Motor Credit Corporation, 8.25%, due 5/15/96........... 1,045,112 527,000 Ford Motor Credit Corporation, 8.625%, due 4/15/96.......... 528,854 225,000 Ford Motor Credit Corporation, 8.875%, due 3/15/96.......... 225,270 500,000 G.E. Capital Credit Corporation, 7.46%, due 9/27/96...................... 504,588 555,000 G.E. Capital Credit Corporation, 8.75%, due 11/26/96..................... 566,518 789,000 General Electric Company, 7.875%, due 5/1/96........... 791,587 400,000 General Motors Acceptance Corporation, 7.65%, due 2/4/97....................... 406,817 550,000 General Motors Acceptance Corporation, 8.00%, due 10/1/96...................... 556,792 990,000 General Motors Acceptance Corporation, 8.25%, due 8/1/96....................... 1,000,421 450,000 General Motors Acceptance Corporation, 8.45%, due 8/13/96...................... 455,057 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE NOTES--CORPORATE, CONTINUED: $ 215,000 General Motors Acceptance Corporation, 8.625%, due 7/15/96...................... $ 217,115 1,175,000 Georgia Power Company First Mortgage Bonds, 4.75%, due 3/1/96....................... 1,175,000 100,000 Gillette Company, 4.75%, due 8/15/96...................... 99,511 50,000 Household Finance Corporation, 7.80%, due 11/1/96........... 50,706 140,000 International Lease Finance Corporation, 6.625%, due 6/1/96....................... 140,326 25,000 International Lease Finance Corporation, 7.90%, due 10/1/96...................... 25,317 480,000 Morgan Stanley & Co. Inc., 8.875%, due 4/1/96........... 481,292 420,000 National City Corporation, 8.375%, due 3/15/96.......... 420,367 638,000 NationsBank Corporation, 4.75%, due 8/15/96.................. 635,098 75,000 Northern Illinois Gas, 4.50%, due 3/15/96.................. 74,954 50,000 Northern Illinois Gas, 5.50%, due 2/1/97................... 49,975 135,000 Pacific Northwest Bell Telephone Company, 7.50%, due 12/1/96...................... 136,524 255,000 PepsiCo, Inc., 7.875%, due 8/15/96...................... 257,266 1,050,000 Philip Morris Companies, Inc., 8.875%, due 7/1/96........... 1,060,418 904,000 Philip Morris Corporation, 8.75%, due 12/1/96........... 923,476 250,000 Quaker Oats Company, 8.85%, due 11/15/96..................... 254,459 370,000 Ralston Purina Company, 9.00%, due 6/15/96.................. 373,578 930,000 Sears Roebuck & Company, 8.55%, due 8/1/96................... 940,824 1,582,000 Sears Roebuck & Company, 9.00%, due 9/16/96.................. 1,608,131 75,000 Security Pacific Corporation, 7.75%, due 12/1/96........... 75,962
See notes to financial statements. 12 TRANS ADVISER FUNDS, INC. MONEY MARKET FUND SCHEDULE OF INVESTMENTS (continued) FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE NOTES--CORPORATE, CONTINUED: $ 580,000 Southwestern Bell Telephone Company, 8.30%, due 6/3/96... $ 583,501 179,000 Textron Inc., 9.25%, due 3/15/96...................... 187,397 55,000 Travelers Group, 8.375%, due 12/15/96..................... 56,156 1,295,000 U.S. West Capital Funding, 8.00%, due 10/15/96.......... 1,311,742 25,000 Union Electric Company, 5.50%, due 3/1/97................... 24,976 250,000 Virginia Electric & Power Company, 7.25%, due 3/1/97... 253,948 580,000 Wal-Mart Stores, Inc., 8.00%, due 5/1/96................... 582,057 FACE SECURITY AMOUNT DESCRIPTION VALUE - ------------ ------------------------------- ------------- FIXED RATE NOTES--CORPORATE, CONTINUED: $ 445,000 Waste Management, Inc., 4.625%, due 4/14/96.................. $ 444,326 645,000 Waste Management, Inc., 7.875%, due 8/15/96.................. 651,083 56,000 Wells Fargo and Company, 8.20%, due 11/1/96.................. 56,781 ------------- Total Fixed Rate Notes--Corporate............ 27,011,201 ------------- MUNICIPAL BONDS (1.8%): 1,000,000 State of Connecticut General Obligation Temporary Notes, 8.90%, due 8/1/96............ 1,014,400 ------------- Total Municipal Bonds........................ 1,014,400 ------------- Total Investments (100.0%)................... $ 57,786,134 ------------- -------------
See notes to financial statements. 13 TRANS ADVISER FUNDS, INC. STATEMENTS OF ASSETS AND LIABILITIES FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
INTERMEDIATE AGGRESSIVE BOND KENTUCKY MONEY MARKET GROWTH/VALUE FUND GROWTH FUND FUND TAX-FREE FUND FUND ----------------- -------------- --------------- ------------- ------------- ASSETS: Investments, at value................... $ 7,360,687 $ 1,999,307 $ 10,874,622 $ 18,616,225 $ 57,786,134 Cash.................................... 1,439,433 653,853 249 336,846 -- Interest, dividends and other receivables........................... 9,125 3,548 156,777 295,182 736,914 Receivable for securities sold.......... -- -- -- -- 172,326 Receivable for shares issued............ 104,563 3,373 -- 77,774 -- Organization costs, net of amortization.......................... 29,112 29,112 29,112 29,112 29,112 ----------------- -------------- --------------- ------------- ------------- Total assets.............................. 8,942,920 2,689,193 11,060,760 19,355,139 58,724,486 ----------------- -------------- --------------- ------------- ------------- LIABILITIES: Payable for securities purchased........ 872,362 60,370 588,270 1,519,303 615,674 Administration fees payable............. 2,083 -- 2,647 2,500 5,843 Accrued expenses and other payables..... 7,476 -- -- 9,396 28,306 Dividends payable....................... -- -- 49,964 69,214 192,620 ----------------- -------------- --------------- ------------- ------------- Total liabilities......................... 881,921 60,370 640,881 1,600,413 842,443 ----------------- -------------- --------------- ------------- ------------- NET ASSETS................................ $ 8,060,999 $ 2,628,823 $ 10,419,879 $ 17,754,726 $ 57,882,043 ----------------- -------------- --------------- ------------- ------------- ----------------- -------------- --------------- ------------- ------------- COMPONENTS OF NET ASSETS: Capital paid in......................... $ 7,486,891 $ 2,497,634 $ 10,460,932 $ 17,645,459 $ 57,881,523 Undistributed net investment loss....... (7,418) (3,702) -- -- -- Unrealized appreciation (depreciation).. 591,543 141,694 (39,608) 64,502 -- Accumulated net realized gains (losses).............................. (10,017) (6,803) (1,445) 44,765 520 ----------------- -------------- --------------- ------------- ------------- NET ASSETS................................ $ 8,060,999 $ 2,628,823 $ 10,419,879 $ 17,754,726 $ 57,882,043 ----------------- -------------- --------------- ------------- ------------- ----------------- -------------- --------------- ------------- ------------- SHARES OUTSTANDING........................ 711,123 249,478 1,043,215 1,722,318 57,881,521 NET ASSET VALUE PER SHARE................. $ 11.34 $ 10.54 $ 9.99 $ 10.31 $ 1.00 COST OF INVESTMENTS....................... $ 6,769,144 $ 1,857,613 $ 10,914,230 $ 18,551,723 $ 57,786,134
See notes to financial statements. 14 TRANS ADVISER FUNDS, INC. STATEMENTS OF OPERATIONS PERIOD ENDED FEBRUARY 29, 1996 * - --------------------------------------------------------------------------------
AGGRESSIVE INTERMEDIATE KENTUCKY MONEY GROWTH/VALUE GROWTH BOND TAX-FREE MARKET FUND FUND FUND FUND FUND ----------------- -------------- --------------- ----------- ---------- INVESTMENT INCOME Interest income............................. $ 5,881 $ 2,087 $ 216,658 $ 274,576 $ 933,103 Dividend income............................. 22,187 3,162 -- -- -- ----------------- -------------- --------------- ----------- ---------- Total income.................................. 28,068 5,249 216,658 274,576 933,103 ----------------- -------------- --------------- ----------- ---------- EXPENSES: Advisory.................................... 18,226 4,605 13,215 18,398 32,485 Administration.............................. 10,417 10,417 10,417 10,833 24,364 Transfer agent.............................. 14,917 11,405 17,685 23,017 51,113 Custodian................................... 427 307 1,551 1,040 5,514 Legal....................................... 1,184 266 2,293 3,022 11,339 Accounting.................................. 15,000 15,000 15,000 18,600 15,000 Trustees.................................... 482 110 985 995 3,997 Registration................................ 5,864 3,117 9,167 5,506 27,501 Amortization of organization costs.......... 2,647 2,647 2,647 2,647 2,647 Other....................................... 2,295 1,147 3,337 6,133 11,957 ----------------- -------------- --------------- ----------- ---------- Total expenses................................ 71,459 49,021 76,297 90,191 185,917 Expenses reimbursed and fees waived......... (35,973) (40,070) (59,259) (51,362) (80,055) ----------------- -------------- --------------- ----------- ---------- Net expenses.................................. 35,486 8,951 17,038 38,829 105,862 ----------------- -------------- --------------- ----------- ---------- NET INVESTMENT INCOME (LOSS).................. (7,418) (3,702) 199,620 235,747 827,241 ----------------- -------------- --------------- ----------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments..... (10,017) (6,803) (1,445) 44,765 520 Net change in unrealized appreciation (depreciation)............................ 591,543 141,694 (39,608) 64,502 -- ----------------- -------------- --------------- ----------- ---------- Net gain (loss) on investments................ 581,526 134,891 (41,053) 109,267 520 ----------------- -------------- --------------- ----------- ---------- INCREASE IN NET ASSETS FROM OPERATIONS........ $ 574,108 $ 131,189 $ 158,567 $ 345,014 $ 827,761 ----------------- -------------- --------------- ----------- ---------- ----------------- -------------- --------------- ----------- ----------
* See note 1 of notes to financial statements for commencement of operations. See notes to financial statements. 15 TRANS ADVISER FUNDS, INC. STATEMENTS OF CHANGES IN NET ASSETS PERIOD ENDED FEBRUARY 29, 1996 * - --------------------------------------------------------------------------------
AGGRESSIVE INTERMEDIATE KENTUCKY MONEY GROWTH/VALUE GROWTH BOND TAX-FREE MARKET FUND FUND FUND FUND FUND ----------------- -------------- --------------- ------------- --------------- NET ASSETS--September 1, 1995........... -- -- -- -- -- ----------------- -------------- --------------- ------------- --------------- OPERATIONS: Net investment income (loss).......... $ (7,418) $ (3,702) $ 199,620 $ 235,747 $ 827,241 Net realized gain (loss) on investments......................... (10,017) (6,803) (1,445) 44,765 520 Net change in unrealized appreciation (depreciation)...................... 591,543 141,694 (39,608) 64,502 -- ----------------- -------------- --------------- ------------- --------------- 574,108 131,189 158,567 345,014 827,761 ----------------- -------------- --------------- ------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income................. -- -- (199,620) (235,747) (827,241) ----------------- -------------- --------------- ------------- --------------- CAPITAL SHARE TRANSACTIONS: Sale of shares........................ 7,601,317 2,551,860 10,707,416 18,671,280 188,894,580 Reinvested dividends.................. -- -- 1,687 139,548 25,307 Cost of shares repurchased............ (114,426) (54,226) (248,171) (1,165,369) (131,038,364) ----------------- -------------- --------------- ------------- --------------- 7,486,891 2,497,634 10,460,932 17,645,459 57,881,523 ----------------- -------------- --------------- ------------- --------------- NET ASSETS--February 29, 1996........... $ 8,060,999 $ 2,628,823 $ 10,419,879 $ 17,754,726 $ 57,882,043 ----------------- -------------- --------------- ------------- --------------- ----------------- -------------- --------------- ------------- ---------------
* See note 1 of notes to financial statements for commencement of operations. See notes to financial statements. 16 TRANS ADVISER FUNDS, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 1996 - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION Trans Adviser Funds, Inc. (the "Company") is an open-end management investment company incorporated under the laws of the State of Maryland. The Company currently consists of five operational non-diversified investment portfolios, the Growth/Value Fund, the Aggressive Growth Fund, the Intermediate Bond Fund, the Kentucky Tax-Free Fund, and the Money Market Fund (each a "Fund" and collectively the "Funds"). The Funds commenced investment operations on the following dates: Growth/Value Fund September 29, 1995 Aggressive Growth Fund September 29, 1995 Intermediate Bond Fund October 3, 1995 Kentucky Tax-Free Fund September 27, 1995 Money Market Fund September 29, 1995
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SECURITY VALUATION-All securities held by the Money Market Fund are valued utilizing the amortized cost method, which approximates market value, in accordance with Rule 2a-7 under the Investment Company Act of 1940. Securities, other than short-term, held by the other Funds (the "Bond and Equity Funds") for which market quotations are readily available are valued using the last reported sales price provided by independent pricing services. If no sales are reported, the mean of the last bid and ask price is used. In the absence of readily available market quotations, securities are valued at fair value as determined by the Board of Directors. Securities with a maturity of 60 days or less held by the Bond and Equity Funds are valued at amortized cost. PREMIUM AMORTIZATION AND DISCOUNT ACCRETION-In all Funds other than the Kentucky Tax-Free Fund, if a fixed income investment is purchased at a premium, the premium is not amortized. The Kentucky Tax-Free Fund amortizes premium on fixed income investments to the maturity (or first call) date using the yield to maturity method. If a fixed income investment is purchased at a discount (other than original issue discount), the discount is not accreted. Original issue discount on fixed income investments is accreted daily using yield to maturity method. INTEREST AND DIVIDEND INCOME AND DISTRIBUTIONS TO SHAREHOLDERS-Interest income is accrued as earned. Dividends on securities held by the Funds are recorded on the ex-dividend date. Distributions of net investment income are declared daily and paid monthly for the Money Market Fund, the Kentucky Tax-Free Fund, and the Intermediate Bond Fund, and declared and paid annually for the Growth/Value Fund and the Aggressive Growth Fund. Net capital gain, if any, is distributed at least annually to shareholders. Distributions from net investment income and realized capital gains are based on their tax basis. The significant difference between financial statement amounts available for distribution and distributions made in accordance with income tax regulations are primarily attributable to the deferral of post-October losses and wash sales. ORGANIZATION COSTS-The costs incurred by the Funds in connection with their organization, in amounts of $31,759 for each Fund, have been capitalized and are being amortized using the straight-line method over a five year period beginning on the commencement of each Fund's investment operations. Certain of these costs were paid by Forum Financial Services, Inc. and have been reimbursed by the respective Funds. FEDERAL INCOME TAXES-Each Fund intends to qualify as a regulated investment company and distribute all of its taxable income. Therefore, no Federal income tax provision is required. OTHER-Realized gains and losses on investments sold are recorded on the basis of identified cost. Security transactions are accounted for on a trade date basis. 17 TRANS ADVISER FUNDS, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 1996 - -------------------------------------------------------------------------------- NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES The investment adviser of the Funds is Trans Financial Bank, N.A. (the "Adviser"). The Adviser receives an advisory fee from Growth/Value Fund and Aggressive Growth Fund at an annual rate of 1.00% of the respective Fund's average daily net assets. The Adviser receives an advisory fee from Intermediate Bond Fund and Kentucky Tax-Free Fund at an annual rate of 0.40% of the respective Fund's average daily net assets. The Adviser receives an advisory fee from Money Market Fund at an annual rate of 0.20% of the Fund's average daily net assets. Pursuant to an agreement between the Adviser and Mastrapasqua and Associates, Inc. ("M&A") (the "Sub-Adviser"), the Adviser may delegate certain of its advisory responsibilities to the Sub-Adviser and pay the Sub-Adviser a fee. The Adviser has agreed to reimburse each Fund for certain operating expenses (exclusive of interest, taxes, brokerage fees, fees and other expenses paid pursuant to any distribution plan and organization expenses, all to the extent permitted by applicable state law or regulation) which in any year exceed the limits prescribed by any state in which the Fund's shares are qualified for sale. The Funds' annual expenses are estimated and accrued daily, and any related reimbursements are made monthly by the Adviser. The administrator of the Company is Forum Financial Services, Inc. ("Forum"), a registered broker-dealer and a member of the National Association of Securities Dealers, Inc. For its administrative services Forum receives a fee for each Fund equal to the greater of $25,000 per year or 0.15% of the annual average daily net assets of each Fund. Forum also acts as the Company's distributor pursuant to a separate Distribution Agreement with the Company. Forum receives no compensation under that agreement. In addition, certain legal expenses were charged to the Company by Forum. The amounts of legal expenses for Growth/Value Fund, Aggressive Growth Fund, Intermediate Bond Fund, Kentucky Tax-Free Fund, and Money Market Fund were: $756, $170, $1,458, $2,063, and $7,229, respectively. Forum Financial Corp. ("FFC"), an affiliate of Forum, serves as the Company's transfer agent and dividend disbursing agent, and for those services receives an annual fee equal to the greater of $12,000 per year for each Fund, an annual shareholder account fee of $25 per shareholder, additional class charges, and out of pocket expenses billed at cost. FFC also serves as the Company's fund accountant and is compensated for those services at an amount of $36,000 per year per Fund plus certain amounts based upon the number and types of portfolio transactions within each Fund. For the period ended February 29, 1996, fees waived and expenses reimbursed by the Adviser were as follows:
EXPENSES FEES WAIVED REIMBURSED ------------- ------------ Growth/Value Fund........................................................ $ 18,226 $ 17,747 Aggressive Growth Fund................................................... 4,605 35,465 Intermediate Bond Fund................................................... 13,215 46,044 Kentucky Tax-Free Fund................................................... 18,398 32,964 Money Market Fund........................................................ 32,485 47,570
18 TRANS ADVISER FUNDS, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 1996 - -------------------------------------------------------------------------------- NOTE 4. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales (including maturities) of securities (excluding short-term investments) during the period ended February 29, 1996 were as follows:
COST OF PURCHASES PROCEEDS FROM SALES ------------------ --------------------- Growth/Value Fund......................................... $ 6,012,045 $ 87,683 Aggressive Growth Fund.................................... 1,731,243 134,196 Intermediate Bond Fund.................................... 13,147,299 627,635 Kentucky Tax-Free Fund.................................... 24,791,718 6,389,168
The cost of investments for federal income tax purposes is the same as for financial reporting purposes. Unrealized appreciation and depreciation as of February 29, 1996 were as follows:
UNREALIZED APPRECIATION UNREALIZED DEPRECIATION ----------------------- ----------------------- Growth/Value Fund.................................. $ 644,934 $ 53,391 Aggressive Growth Fund............................. 185,370 43,676 Intermediate Bond Fund............................. 24,861 64,469 Kentucky Tax-Free Fund............................. 143,430 78,928
NOTE 5. CAPITAL SHARE TRANSACTIONS Transactions of fund shares for the period ended February 29, 1996 are summarized in the following table:
GROWTH/VALUE AGGRESSIVE INTERMEDIATE KENTUCKY TAX- MONEY MARKET FUND GROWTH FUND BOND FUND FREE FUND FUND ------------- ------------- ------------ -------------- -------------- Sale of Shares......... 721,855 255,032 1,067,684 1,820,466 188,894,578 Shares Issued on Reinvested Dividends............. -- -- 239 14,607 25,307 Shares Repurchased..... 10,732 5,554 24,708 112,755 131,038,364
19 TRANS ADVISER FUNDS, INC. FINANCIAL HIGHLIGHTS FEBRUARY 29, 1996 - --------------------------------------------------------------------------------
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING AGGRESSIVE INTERMEDIATE KENTUCKY MONEY THROUGHOUT THE PERIOD ENDED GROWTH/VALUE GROWTH BOND TAX-FREE MARKET FEBRUARY 29, 1996.(A) FUND FUND FUND FUND FUND ----------- ----------- ------------ ------------ ------------ Beginning Net Asset Value Per Share....................... $10.00 $10.00 $10.00 $10.00 $1.00 ----------- ----------- ------------ ------------ ------------ Net Investment Income (Loss)(d)................... (0.02) (0.03) 0.25 0.24 0.21 Net Realized and Unrealized Gain (Loss) on Investments................. 1.36 0.57 (0.01) 0.31 -- ----------- ----------- ------------ ------------ ------------ Distributions from Net Investment Income........... -- -- (0.25) (0.24) (0.21) ----------- ----------- ------------ ------------ ------------ Ending Net Asset Value Per Share....................... $11.34 $10.54 $9.99 $10.31 $1.00 ----------- ----------- ------------ ------------ ------------ ----------- ----------- ------------ ------------ ------------ Ratios to Average Net Assets: Expenses(b)................. 1.95%(c) 1.95%(c) 0.52%(c) 0.88%(c) 0.65%(c) Net Investment Income (Loss).................... (0.40)%(c) (0.79)%(c) 6.12%(c) 5.33%(c) 5.03%(c) Total Return.................. 13.40% 5.40% 2.40% 5.55% 2.16% Portfolio Turnover Rate....... 2.25% 14.72% 1.71% 59.14% N/A Net Assets at End of Period (000's omitted)............. $8,061 $2,629 $10,420 $17,755 $57,882
(a) See note 1 of notes to financial statements for commencement of operations. (b) During the period, various fees and expenses were waived and reimbursed. Had such waiver and reimbursement not occurred, the ratio of expenses to average net assets would have been: 3.87 %(c) 10.51 %(c) 2.34 %(c) 2.04 %(c) 1.13 %(c)
(c) Annualized. (d) Using weighted average shares outstanding. See notes to financial statements. 20 TRANS ADVISER FUNDS, INC. TRANS ADVISER FUNDS P.O. Box 90001 Bowling Green, KY 42102-9001 ADVISER Trans Financial Bank P.O. Box 90001 Bowling Green, KY 42102-9001 SUB-ADVISER Mastrapasqua & Associates, Inc. 1801 West End Avenue Nashville, TN 37203 ADMINISTRATOR/DISTRIBUTOR Forum Financial Services, Inc. Two Portland Square Portland, ME 04101 TRANSFER AGENT Forum Financial Corp. Two Portland Square Portland, ME 04101 LEGAL COUNSEL Kramer, Levin, Naftalis, Nessen, Kamin & Frankel 919 Third Avenue New York, NY 10022 AUDITORS KPMG Peat Marwick LLP 99 High Street Boston, MA 02110 Table of Contents
Page Schedule of Investments: Growth/Value Fund......................... 2 Aggressive Growth Fund.................... 4 Intermediate Bond Fund.................... 5 Kentucky Tax-Free Fund.................... 7 Money Market Fund......................... 11 Statements of Assets and Liabilities........ 14 Statements of Operations.................... 15 Statements of Changes in Net Assets......... 16 Notes to Financial Statements............... 17 Financial Highlights........................ 20
THIS REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A COPY OF THE TRANS ADVISER FUNDS, INC. PROSPECTUS. [LOGO] GROWTH/VALUE FUND AGGRESSIVE GROWTH FUND INTERMEDIATE BOND FUND KENTUCKY TAX-FREE FUND MONEY MARKET FUND SEMI ANNUAL REPORT FEBRUARY 29, 1996 (UNAUDITED) NOT FDIC INSURED -----END PRIVACY-ENHANCED MESSAGE-----