Activa Mutual Fund Trust – ‘N-30D’ for 6/30/97

As of:  Wednesday, 8/13/97   ·   For:  6/30/97   ·   Accession #:  912057-97-27561   ·   File #:  811-02168

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Annual or Semi-Annual Report Mailed to Shareholders   —   Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to                13±    49K 
                          Shareholders                                           

N-30D
1st “Page” of 8
TOC
↑Top
Previous
Next
↓Bottom
Just 1st
 
                                                                    ------------
                                                                   BULK RATE
AMWAY MUTUAL FUND, INC.                                             U.S. POSTAGE
7575 Fulton Street East                                                 PAID    
Ada, Michigan  49355-7150                                             ADA, MI   
                                                                    PERMIT 100
                                                                    ------------

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

AMWAY 
MUTUAL  
FUND, 
INC.
SEMI-ANNUAL 
REPORT
1997

AMWAY 
MUTUAL
FUND

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

N-30D
2nd “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 2nd
AMWAY MUTUAL FUND, INC. 

Dear Shareholders:                                                              

   I am pleased to provide you with the Semi-Annual Report to Shareholders for
Amway Mutual Fund, Inc., for the six months ended June 30, 1997.  During the    
first six months of calendar year 1997, we have continued to experience another 
extraordinarily successful period for investments in stocks with performance    
well surpassing historical norms.  Your Fund participated in that performance   
with a total return of 13.9%.  The market continues to thrive due to several    
factors including relatively low and stable interest rates, economic growth, a  
low inflation rate and a stable global environment.                             

  Ark Investment Management, the sub-adviser for the Fund, has an investment
style which continues to reflect a strong value discipline in the investment    
process.  When considering Ark's investment strategy of maximizing value, the   
Fund has continued to perform well in the rising markets.  Conversely, one of   
the primary objectives of the value strategy is to position the Fund to perform 
well in a declining market.  During any market declines, they will be looking to
take advantage of any downturns in the market by acquiring attractive long-term 
issues at a lower price, and on the other hand, they will be selling any issues 
that appear to be over valued during upward trends in the market.               

We continue to feel that investments in stocks will be rewarded over the
long term.  We will always use our best efforts to provide you with excellent   
long term results.                                                              

Sincerely,                                                                      

James J. Rosloniec                                                              
President                                                                       

DIRECTORS                                                                       
Richard A. DeWitt                                                               
Allan D. Engel                                                                  
Donald H. Johnson                                                               
Walter T. Jones                                                                 
James J. Rosloniec                                                              

TRANSFER AGENT                                                                  
Amway Stock Transfer Co.                                                        
7575 Fulton Street, East                                                        
Ada, Michigan  49355-7150                                                       

CUSTODIAN                                                                       
Michigan National Bank                                                          
77 Monroe Center                                                                
Grand Rapids, Michigan  49501                                                   

AUDITORS                                                                        
BDO Seidman, LLP                                                                
99 Monroe Avenue, N.W.                                                          
Grand Rapids, Michigan  49503                                                   

LEGAL MATTERS                                                                   
John Dougherty                                                                  
Attorney at Law                                                                 
Suite 500                                                                       
1155 Connecticut Ave., N.W.                                                     
Washington, DC  20036                                                           

INVESTMENT ADVISOR                                                              
Amway Management Company                                                        
7575 Fulton Street, East                                                        
Ada, Michigan  49355-7150                                                       

SUB-ADVISOR                                                                     
Ark Asset Management Co., Inc.                                                  
One New York Plaza                                                              
New York, NY 10004                                                              

                                                                 August 26, 1997

2                                                                               

N-30D
3rd “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 3rd
AMWAY MUTUAL FUND, INC. 
SCHEDULE OF INVESTMENTS 
JUNE 30, 1997 
(UNAUDITED) 

                                                  SHARES OR       MARKET
COMMON STOCK-98.46%                                   PAR VALUE       VALUE     
                                                  ---------       ------
                                                                   $

APPAREL AND ACCESSORY STORES-1.33%                                              
Gap (The), Inc.                                        45,900      1,784,362

BANKING-3.33%                                                                   
Bankers Trust NY Corp.                                 12,800      1,113,600
Chase Manhattan Corp. (New)                            10,200        990,038
First Chicago NBD Corp.                                15,800        955,900
Wells Fargo & Co.                                       5,200      1,401,400
                                                                ------------
                                                                   4,460,938
                                                                ------------

BUSINESS SERVICES-3.94%                                                         
Nynex Corp.                                            46,300      2,668,038
Xerox Corp.                                            33,000      2,602,875
                                                                ------------
                                                                   5,270,913
                                                                ------------
CHEMICALS & ALLIED PRODUCTS-4.08%                                               
 American Home Products                                17,600      1,346,400
 Bristol-Meyers Squibb Co.                             11,000        891,000
 Dupont (E.I.) De Nemours & Co.                        36,500      2,294,937
 Grace (W.R.) & Co. Del (New)                           2,100        115,763
 Hercules, Inc.                                        16,900        809,087
                                                                ------------
                                                                   5,457,187
                                                                ------------

COMMUNICATION-8.22%                                                             
AT&T Corp.                                             47,700      1,672,481
Fluor Corp.                                            14,000        772,625
GTE Corp.                                              61,900      2,715,863
SBC Communications, Inc.                               23,400      1,447,875
TCI Series - A TCI Group                             *139,200      2,066,250
USWest Media Group                                    *37,000        749,250
Viacom, Inc. Class B                                  *52,700      1,581,000
                                                                ------------
                                                                  11,005,344
                                                                ------------

ELECTRIC & ELECTRONIC EQUIPMENT-4.97%                                           
Alliedsignal, Inc.                                     21,200      1,780,800
AMP Inc.                                               54,300      2,267,025
Raytheon Co.                                           32,300      1,647,300
Rockwell International Corp. (New)                     16,300        961,700
                                                                ------------
                                                                   6,656,825
                                                                ------------

ELECTRIC, GAS, & SANITARY SERVICES-4.48%                                        
Enron Corp.                                            58,600      2,391,613
Texas Utilities Co.                                    60,600      2,086,912
Waste Management, Inc.                                 47,000      1,509,875
                                                                ------------
                                                                   5,988,400
                                                                ------------

FABRICATED METAL PRODUCTS-1.34%                                                 
Masco Corp.                                            42,800      1,786,900
                                                                ------------

FOOD AND KINDRED PRODUCTS-4.56%                                                 
Anheuser-Busch Cos., Inc.                              57,100      2,394,631
Archer-Daniels-Midland                                133,676      3,141,386
CPC International, Inc.                                 6,100        563,107
                                                                ------------
                                                                   6,099,124
                                                                ------------

FOOD STORES-1.42%                                                               
Albertson's, Inc.                                      51,900      1,894,350

GENERAL MERCHANDISE STORES-6.25%                                                
Dillard's, Inc.                                        67,500      2,337,187
Federated Department Stores                           *50,200      1,744,450
May Dept. Stores Co.                                   37,800      1,786,050
Sears, Roebuck & Company                               46,300      2,488,625
                                                                ------------
                                                                   8,356,312
                                                                ------------

HEALTH SERVICES-4.37%                                                           
Columbia/HCA Healthcare Corp.                          99,100      3,895,869
Humana, Inc.                                          *52,500      1,214,062
United Healthcare Corp.                                14,100        733,200
                                                                ------------
                                                                   5,843,131
                                                                ------------

HOLDING AND OTHER INVESTMENT OFFICES-1.24%                                      
American General Corp.                                 34,800      1,661,700
                                                                ------------
INSTRUMENTS AND RELATED PRODUCTS-1.67%                                          
Eastman Kodak Co.                                      29,100      2,233,425
                                                                ------------

INSURANCE CARRIERS-10.27%                                                       
Aetna Inc.                                             23,200      2,375,100
Allstate Corp.                                         37,800      2,759,400
Chubb Corp.                                            37,200      2,487,750
General RECorporation                                  18,600      3,385,200
Loews Corp.                                            21,200      2,122,650
Unum Corp.                                             14,600        613,200
                                                                ------------
                                                                  13,743,300
                                                                ------------

LUMBER AND WOOD PRODUCTS-0.59%                                                  
Georgia-Pacific Corp.                                   9,300        793,987
                                                                ------------

The accompanying notes are an integral part of these financial statements.

                                                                               3

N-30D
4th “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 4th
AMWAY MUTUAL FUND, INC. 
SCHEDULE OF INVESTMENTS 
JUNE 30, 1997 
(UNAUDITED) 

                                                  SHARES OR       MARKET
COMMON STOCK-98.46%                                   PAR VALUE       VALUE     
(CONTINUED)                                           ---------       ------    
                                                                   $
MACHINERY, EXCEPT ELECTRICAL-6.76%                                              
Digital Equipment Corp.                               *19,400        687,488
Dresser Industries, Inc.                               56,300      2,097,175
Hewlett-Packard Co.                                    17,400        974,400
International Business Machines                        47,500      4,283,906
Seagate Technology                                    *28,600      1,006,362
                                                                ------------
                                                                   9,049,331
                                                                ------------

METAL MINING-1.82%                                                              
 Newmont Mining Corp.                                  62,400      2,433,600
                                                                ------------

MISCELLANEOUS MANUFACTURING INDUSTRIES-0.00%                                    
Jan Bell Marketing Warrants                              *762              8
                                                                ------------
OIL AND GAS EXTRACTION-6.94%                                                    
Baker Huges, Inc.                                      39,100      1,512,681
Burlington Resources                                   23,300      1,028,113
Occidental Petroleum Corp.                            107,100      2,684,194
Tenneco, Inc.                                          11,300        510,619
Union Pacific Resources                                56,100      1,395,487
Unocal Corp.                                           55,700      2,161,856
                                                                ------------
                                                                   9,292,950
                                                                ------------

PAPER & ALLIED PRODUCTS-3.23%                                               
Champion International Corp.                           28,900      1,596,725
James River Corp.                                      35,700      1,320,900
Kimberly-Clark Corp.                                   28,200      1,402,950
                                                                ------------
                                                                   4,320,575
                                                                ------------

PETROLEUM & COAL PRODUCTS-2.64%                                                 
Amerada Hess Corp.                                     31,600      1,755,775
Atlantic Ritchfield Company                            16,300      1,149,150
Texaco, Inc.                                            5,800        630,750
                                                                ------------
                                                                   3,535,675
                                                                ------------

PRIMARY METAL INDUSTRIES-1.56%                                              
Aluminum Co. of America                                27,700      2,087,887
                                                                ------------

PRINTING AND PUBLISHING-0.45%                                                   
Gannett Co.                                             6,100        602,375
                                                                ------------

RAILROAD TRANSPORTATION-3.98%                                                   
Burlington Northern Santa Fe                           26,900      2,417,638
CSX Corp.                                              52,500      2,913,750
                                                                ------------
                                                                   5,331,388
                                                                ------------

RUBBER AND MISC. PLASTICS PRODUCTS-0.40%                                        
Goodyear Tire & Rubber Co.                              8,400        531,825
                                                                ------------

SECURITY & COMMODITY BROKERS & SERVICES-0.93%                                   
Morgan Stanley, Dean Witter                            29,000      1,248,812
                                                                ------------

STONE, CLAY & GLASS PRODUCTS-1.64%                                              
PPG Industries                                         37,800      2,197,125
                                                                ------------

TRANSPORTATION EQUIPMENT-6.05%                                                  
Chrysler Corp.                                         82,400      2,703,750
Ford Motor Co.                                         73,100      2,759,525
Lockheed Martin Corp.                                  25,400      2,630,488
                                                                ------------
                                                                   8,093,763
                                                                ------------
Total Common Stock-98.46%                                       $131,761,512
Cash (Michigan National Bank Money Market                                       
 Account)-1.38%                                                 $  1,849,460
All Other Assets Less Liabilities-(0.16%)                         $    208,846  
                                                                ------------
NET ASSETS-100.00%                                                $133,819,818  
                                                                ------------
                                                                ------------

*Non-dividend producing as of June 30, 1997.                                    

The accompanying notes are an integral part of these financial statements.

4                                                                               

N-30D
5th “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 5th
AMWAY MUTUAL FUND, INC. 
STATEMENT OF ASSETS 
AND LIABILITIES FOR 
THE SIX MONTHS ENDED
JUNE 30, 1997 
(UNAUDITED) 

ASSETS:                                                                         

Investments in securities, at market                                        
(identified cost $114,882,002)                                        
   (Notes 1-A, and 3)                                           $131,761,512
Cash                                                               1,849,460
Receivables:                                                                
   Securities sold                                                   722,347
   Dividends                                                         260,429
   Miscellaneous                                                      15,528
   Interest                                                            9,330
   Capital stock sold                                                  4,249
Prepaid insurance                                                      7,566
                                                                ------------
      TOTAL ASSETS                                               134,630,421
                                                                ------------

LIABILITIES:                                                                    
Accounts payable:                                                           
   Securities purchased                                              551,876
   Advisory fee (Note 4)                                             172,356
   Capital stock redeemed                                             64,204
   Transfer agent fee (Note 4)                                        22,167
                                                                ------------
      TOTAL LIABILITIES                                              810,603

NET ASSETS:                                                                     
Capital stock (20,000,000 shares of $1.00                                       
par value authorized), amount paid in                                       
on 15,410,309 shares outstanding (Note 2)        $107,467,815               
Undistributed net investment income                     728,380                 
Accumulated net realized gain on investments          8,744,113                 
Net unrealized appreciation on investments           16,879,510                 
                                  ------------
Net assets equivalent to $8.68 per share                          $133,819,818  
                                                                ------------
                                                                ------------

COMPUTATION OF MAXIMUM OFFERING PRICE OF THE                                    
FUND'S SHARES-as of June 30, 1997:                                              
Net asset value per share                                                   
   ($133,819,818 DIVIDED BY 15,410,309)                               $ 8.68
Offering price per share (net asset value                                   
plus sales commission)                                                      
   (1000/970 X $8.68)                                                 $ 8.95

AMWAY MUTUAL FUND, INC. 
STATEMENT OF OPERATIONS 
FOR THE SIX MONTHS ENDED
JUNE 30, 1997 
(UNAUDITED) 

INVESTMENT INCOME:                                                              
Income:                                                                     
   Dividends                                                    $  1,184,835
   Interest                                                           91,530
   Securities Litigation Settlement                                   31,232
                                                                ------------
      Total income                                                 1,307,597

Expenses:                                                                   
Advisory fee (Note 4)                         $    342,628            
Transfer agent fee (Note 4)                        127,353            
Custodian fee                                       24,653            
Shareholder Communications                          20,815            
Data processing service (Note 5)                    15,380            
Audit fees                                          10,740            
Corporate taxes                                     10,317            
Insurance                                            9,021            
Registration fees                                    5,430            
Legal services                                       4,525            
                                  ------------

      Total expenses                                                 570,862
    Fees paid indirectly (Note 5)                                     (15,380)
                                                                ------------
      Net Expenses                                                   555,482
                                                                ------------
         NET INVESTMENT INCOME                                       752,115
                                                                ------------

REALIZED AND UNREALIZED GAIN ON INVESTMENTS:                                    
Net realized gain (Note 3)                                         8,784,730
Unrealized appreciation on investments:                               
Beginning of year                             9,913,786         
June 30, 1997                                16,879,510         
                                  ------------

Net change in unrealized appreciation                                       
   on investments:                                                 6,965,724
                                                                ------------
         NET GAIN ON INVESTMENTS                                  15,750,454
                                                                ------------
NET INCREASE IN NET ASSETS RESULTING                      
            FROM OPERATIONS                                      $16,502,569
                                                                ------------
                                                                ------------

      The accompanying notes are an integral part of these financial statements.

                                                                               5

N-30D
6th “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 6th
AMWAY MUTUAL FUND, INC. 
STATEMENT OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                                                    Six Months Ended     Year Ended    
                                                                      June 30, 1997   December 31, 1996
                                                                       (Unaudited)       (Audited)     
                                                                       -----------       ---------     
                                                                                                       
NET ASSETS FROM OPERATIONS:                                                                            
  Investment income-net                                               $    752,115      $  1,146,351   
  Realized gain on investments-net                                       8,784,730        17,657,371   
  Increase in unrealized appreciation-net                                6,965,724         1,783,552   
                                                                      ------------      ------------   
     Net increase in net assets resulting from operations               16,502,569        20,587,274   
DISTRIBUTIONS TO SHAREHOLDERS:                                                                         
  Investment income-net                                                         --        (1,149,246)  
  Realized gain from investment transactions-net                                --       (17,613,452)  
                                                                      ------------      ------------   
     Total distributions to shareholders                                        --       (18,762,698)  
                                                                      ------------      ------------   
CAPITAL SHARE TRANSACTIONS: (Notes 2 and 4)                                                            
  Net proceeds from sale of shares                                      16,324,342        31,252,559   
  Net asset value of shares issued to shareholders in                                                  
  reinvestment of investment income and realized gain from                                             
  security transactions                                                         --        18,195,824   
                                                                        16,324,342        49,448,383   
  Payment for shares redeemed                                          (12,334,495)      (15,193,852)  
                                                                      ------------      ------------   

     Increase in net assets derived from capital share transactions      3,989,847        34,254,531   
        Total increase                                                  20,492,416        36,079,107   

NET ASSETS:                                                                                            
  Beginning of period                                                  113,327,402        77,248,295   
                                                                      ------------      ------------   
  End of period (includes undistributed (over-distributed) net                                         
     investment income of $728,380 and ($23,735), respectively)       $133,819,818      $113,327,402   
                                                                      ------------      ------------   
                                                                      ------------      ------------   


     AMWAY MUTUAL FUND, INC.
     NOTES TO FINANCIAL STATEMENTS
     (UNAUDITED)

NOTE 1-SIGNIFICANT ACCOUNTING POLICIES                                          

The company is registered under the Invested Company Act of 1940 as a   
diversified, open-end management investment company.                    

(A)  SECURITY VALUATION-Investments in securities listed or admitted to 
    trading on a national securities exchange are valued at their last
     reported sale price before the time of valuation.  If a security is
      traded only in the over-the-counter market, or if no sales have been
      reported for a listed security on that day, it will be valued at the
        mean between the current closing bid and asked prices.  Securities for
  which market quotations are not readily available, including any
        restricted securities, (none at June 30, 1997) and other assets of the
     Fund are valued at fair market value as determined in good faith by
the Fund's Board of Directors.                                

(B)  FEDERAL INCOME TAXES-The Fund's policy is to comply with the       
   requirements of the Internal Revenue Code applicable to regulated
      investment companies and to make distributions of income and capital
      gains sufficient to relieve it from substantially all Federal income
taxes.                                                        

(C)  SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME-Security       
      transactions are accounted for on the trade date and dividend income
      is recorded on the ex-dividend date.  Interest income is recorded on
the accrual basis.  Realized gains and losses from security   
transactions and unrealized appreciation and depreciation of  
investments are reported on a specific identification basis.  
      Dividends and distributions to shareholders are recorded by the Fund
on the ex-dividend date.                                      

      The accompanying notes are an integral part of these financial statements.

6                                                                               

N-30D
7th “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 7th
AMWAY MUTUAL FUND, INC. 
NOTES TO FINANCIAL STATEMENTS 
(UNAUDITED) (CONTINUED) 

NOTE 2-CAPITAL STOCK                                                            

 At June 30, 1997, there were 20,000,000 shares of $1.00 par value capital
stock authorized.  Transactions in capital stock were as follows:               

                                 Six Months           Year
                                    Ended              Ended
                                       June 30, 1997     December 31, 1996
                                       -------------     -----------------
Shares:                                                           
   Outstanding, beginning of period   14,871,253          10,399,006
                  ----------
   Sold                                2,097,680           3,924,168
   Issued in payment of dividends             --           2,435,854
                                      ----------          ----------
                                       2,097,680           6,360,022
   Redeemed                            1,558,624           1,887,775
                                      ----------          ----------
   Net increase for the period           539,056           4,472,247
                                      ----------          ----------
   Outstanding, end of period         15,410,309          14,871,253
                                      ----------          ----------
                                      ----------          ----------

NOTE 3-INVESTMENT TRANSACTIONS                                                  

  At June 30, 1997, for federal income tax purposes, the cost of investments
owned was $114,887,303.  Aggregate gross unrealized gains on securities in which
there was an excess of market value over tax cost was $18,385,681.  Aggregate   
gross unrealized losses on securities in which there was an excess of tax cost  
over market value was $1,511,471.  Net unrealized gains for tax purposes was    
$16,874,210 at June 30, 1997.                                                   

Realized gains from sales of investments were determined on the basis of
specific identification.  For tax purposes gains of $8,774,238 were realized on 
investments.                                                                    

For the period ended June 30, 1997, cost of purchases and proceeds from 
sales of investments, other than corporate short-term notes, aggregated         
$68,585,066 and $64,341,175, respectively.                                      

NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES           

The investment advisory and service contract between the Fund and Amway 
Management Company provides for an annual investment advisory and management    
fee, computed daily and payable quarterly, of .55 of 1% of total net assets.    
The advisory fees incurred by the Fund amounted to $342,628 for the period ended
June 30, 1997.  Under the Principal Underwriter Agreement between the Fund and  
Amway Management Company, the adviser receives a net commission for the         
distribution of the Fund's shares.  This commission amounted to $464,420 for the
period ended June 30, 1997.                                                     

Amway Stock Transfer Co. acts as the Fund's agent for transfer of the   
Fund's shares and disbursement of the Fund's distributions.  The transfer agent 
fee incurred by the Fund amounted to $127,353 for the period ended June 30,     
1997.                                                                           

A beneficial shareholder of Amway Management Company and Amway Stock    
Transfer Company is also a beneficial shareholder of approximately 19% (as of   
June 30, 1997) of the outstanding capital shares of the Fund.                   

The officers serve without compensation from the Fund.  Directors' fees,
amounting to $7,500 for the period ended June 30, 1997 were paid by Amway       
Management Company, the Fund's investment adviser.  The director's payments     
consist of an annual retainer plus a per meeting fee.                           

  The accompanying notes are an integral part of these financial statements.

                                                                               7

N-30D
Last “Page” of 8
TOC
1st
Previous
Next
↓Bottom
Just 8th
AMWAY MUTUAL FUND, INC. 
NOTES TO FINANCIAL STATEMENTS 
(UNAUDITED) (CONTINUED) 

NOTE 5-DATA PROCESSING SERVICE                                                  

   Portfolio accounting services for the Fund in the amount of $15,380 for the
period ended June 30, 1997 are paid for through the use of directed brokerage   
commissions.                                                                    

NOTE 6-MATERIAL ISSUANCE OF STOCK                                               

 A certain class of distributors of Amway Corporation and Amway of Canada,
Ltd. ("corporations") received from each corporation part of its distributor's  
profit-sharing bonus in Amway Mutual Fund, Inc. common stock shares. On January 
9, 1997, the corporations purchased 1,657,275 Amway Mutual Fund shares valued at
$12,777,588 (based on the net asset value of $7.71 per share) and transferred   
the shares to these distributors.                                               

AMWAY MUTUAL FUND, INC. 
SUPPLEMENTARY INFORMATION 
(Selected data for each share of capital stock outstanding  
throughout each period.)

                                                                [Download Table]


                                                    Six Months   Year Ended  
       Financial Highlights                           Ended        December  
          (Introduction)                          June 30, 1997    31, 1996  
                                                   (Unaudited)    (Audited)  
                                                    ----------    ---------  
                                                                             
Net Asset Value, Beginning of Period               $       7.62  $       7.43
    Income From Investment Operations                                        
    Net Investment Income                                   .05           .10
    Net Gain (Loss) on Securities (both realized                             
      and unrealized)                                      1.01          1.59
                                                   ------------  ------------
    Total From Investment Operations                       1.06          1.69
    Less Distributions                                                       
    Dividends (from net investment income)                   --           .09
    Distributions (from capital gains)                       --          1.41
    Returns of Capital                                       --            --
                                                   ------------  ------------
    Total Distributions                                      --          1.50
                                                   ------------  ------------
Net Asset Value, End of Period                     $       8.68  $       7.62
                                                   ------------  ------------
                                                   ------------  ------------
Total Return*                                            13.91%        23.18%
                                                   ------------  ------------
                                                   ------------  ------------
Ratios/Supplemental Data                                                     
Net Assets, End of Period                           133,819,818   113,327,402
Ratio of Expenses to Average Net Assets                     .5%          1.0%
Ratio of Net Income to Average Net Assets                   .6%          1.2%
Portfolio Turnover Rate                                   53.2%        100.4%
Average commission rate per share                  $      .0583  $      .0600


*The 3% sales charge is not reflected in the total return and the six months    
ended June 30, 1997 is not annualized but an aggregate total return for the     
period.                                                                         

This report is prepared for the information of shareholders. It is      
authorized for distribution to prospective investors only if preceded or        
accompanied by an effective Prospectus.                                         

      The accompanying notes are an integral part of these financial statements.

8                                                                               

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘N-30D’ Filing		Date		First		Last			Other Filings
		8/26/97		2
		8/19/97
Filed on:		8/13/97
For Period End:		6/30/97		2		8			NSAR-A
		1/9/97		8
		12/31/96		6		7			24F-2NT,  N-30D,  NSAR-B
									List all Filings