-----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, FHPKmh9v7Yvf/lTGaHERRQA41vBmRvFYDAYcPo9Dm93aXqouIvwK0KHSxi8wSLPX pR0+PXMvVv0RCi9LisbwHQ== 0000950149-97-001364.txt : 19970715 0000950149-97-001364.hdr.sgml : 19970715 ACCESSION NUMBER: 0000950149-97-001364 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970714 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENECA FUNDS CENTRAL INDEX KEY: 0001005020 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07455 FILM NUMBER: 97640052 BUSINESS ADDRESS: STREET 1: 909 MONTGOMERY STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94133 BUSINESS PHONE: 4156771570 MAIL ADDRESS: STREET 1: 909 MONTGOMERY STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94133 N-30D 1 SENECA FUNDS SEMI-ANNUAL REPORT DATED 3/31/97 1 [SENECA FUNDS LOGO] SEMI-ANNUAL REPORT MARCH 31, 1997 2 Mission Statement Teamwork and dedication are the cornerstones of our success The pursuit of excellence is our motivation Honesty, professionalism and ethical values guide our actions Commitment and hard work are the means of achievement Quality and action supercede quantity and intentions Good judgment is the result of experience Our goal is the continual attainment of higher levels of service Our clients are our partners in success 3 Dear Fellow Shareholders, It is my pleasure to write to you as the Seneca Funds complete their first full year of operation as of March 31, 1997. Overall, fund assets have grown to $68.8 million, up over 250% from the end of our first fiscal year on September 30, 1996. The Seneca Funds' client base also continues to expand with over 1,500 shareholders today. Notable milestones in our first year included having several of the Seneca Funds in the NASDAQ pricing list published daily in the Wall Street Journal. In addition, the financial press has chronicled the exemplary performance results of the Seneca Funds. Articles in Barron's, Fortune, Investors Business Daily, Money, Mutual Funds and other magazines continue to highlight the disciplined investment philosophy successfully utilized by our team of twenty professionals at the Seneca Funds. This consistent, disciplined approach has helped us navigate the difficult periods in the capital markets, such as the beginning of 1997. With the Federal Reserve raising interest rates in March, and inflation fears roiling the markets, the equity markets suffered a decline of nearly 10%. Fixed Income and Real Estate securities also declined. While this has been a difficult quarter, the Seneca Funds continue to perform well, with positive returns in three of our four funds. Only our Earnings Driven Growth ("EDGE"(sm)) Fund, which invests in smaller companies, experienced a decline, as did the entire small capitalization market. Over the past year, the Seneca Funds' performance results rank among the leaders in each of their respective categories according to Morningstar. With the fundamental tenets of this bull market intact - moderate inflation, improved corporate earnings and continued capital inflows - our outlook continues to be positive. On behalf of all of the professionals here at the Seneca Funds, we thank you for your continued support, and appreciate the trust you have placed in us by becoming a shareholder in the Seneca Funds. Please feel free to contact us at (800) 990-9331 if we can answer any questions or provide any additional information. Sincerely, Gail P. Seneca President The Seneca Funds 4 SENECA FUNDS SENECA GROWTH FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - -------------------------------------------------- ------- ----------- COMMON STOCKS -- 85.5% ADVERTISING -- (1.3%) Outdoor Systems, Incorporated (1)............. 13,220 $ 394,948 ----------- AEROSPACE -- (1.4%) United Technologies Corporation............... 5,510 414,628 ----------- AIRLINES -- (1.2%) UAL Corporation (1)........................... 5,830 377,493 ----------- CHEMICALS -- (5.3%) Air Products & Chemicals, Incorporated........ 9,260 628,522 Clorox Company................................ 5,150 577,444 E.I. Dupont de Nemours & Company.............. 3,780 400,680 ----------- 1,606,646 ----------- COMMERCIAL SERVICES -- (0.4%) Envoy Corporation New (1)..................... 5,600 130,900 ----------- COMPUTERS -- (1.7%) International Business Machines Corporation... 3,780 519,277 ----------- COMPUTER SOFTWARE -- (4.7%) Intel Corporation............................. 5,510 766,579 Microsoft Corporation (1)..................... 6,850 628,059 ----------- 1,394,638 ----------- CONSUMER NON-DURABLE -- (4.6%) Colgate-Palmolive Company..................... 8,010 797,996 Johnson & Johnson............................. 11,570 611,764 ----------- 1,409,760 ----------- DRUGS & HEALTH CARE -- (8.2%) Eli Lilly & Company........................... 10,020 824,145 HEALTHSOUTH Corporation (1)................... 29,270 559,789 McKesson Corporation.......................... 3,800 243,200 Merck & Company, Incorporated................. 10,235 862,299 ----------- 2,489,433 -----------
See notes to financial statements. 1 5 SENECA FUNDS SENECA GROWTH FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - -------------------------------------------------- ------- ----------- COMMON STOCKS (CONTINUED) ELECTRIC UTILITIES -- (0.9%) Texas Utilities Company....................... 8,110 277,768 ----------- ELECTRICAL EQUIPMENT -- (5.2%) General Electric Company...................... 9,280 921,040 Honeywell, Incorporated....................... 9,430 640,061 ----------- 1,561,101 ----------- ELECTRONICS -- (3.2%) Emerson Electric Company...................... 6,000 270,000 Motorola, Incorporated........................ 11,460 691,897 ----------- 961,897 ----------- FINANCIAL SERVICES -- (10.9%) American Express Company...................... 8,250 493,969 BankAmerica Corporation....................... 5,880 592,410 Charles Schwab Corporation.................... 15,607 497,473 Chase Manhattan Corporation New............... 5,580 522,427 Citicorp...................................... 6,310 683,057 Federal National Mortgage Association......... 14,350 518,394 ----------- 3,307,730 ----------- FOOD & BEVERAGES -- (8.7%) General Mills, Incorporated................... 12,640 785,260 Hershey Foods Corporation..................... 13,410 670,500 PepsiCo, Incorporated......................... 19,180 625,748 Safeway, Incorporated (1)..................... 11,950 554,181 ----------- 2,635,689 ----------- FORESTRY -- (1.3%) Georgia Pacific Corporation................... 5,350 387,875 ----------- HOTELS & RESTAURANTS -- (1.7%) HFS, Incorporated (1)......................... 8,520 501,615 ----------- INSURANCE -- (4.4%) Aetna, Incorporated........................... 8,040 690,435 Allstate Corporation.......................... 10,740 637,687 ----------- 1,328,122 -----------
See notes to financial statements. 2 6 SENECA FUNDS SENECA GROWTH FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - -------------------------------------------------- ------- ----------- COMMON STOCKS (CONTINUED) MANUFACTURING -- (1.2%) Illinois Tool Works, Incorporated............. 4,560 372,210 ----------- OIL -- (7.2%) Atlantic Richfield Company.................... 6,000 810,000 Mobil Corporation............................. 6,370 832,081 Royal Dutch Petroleum Company................. 3,090 540,750 ----------- 2,182,831 ----------- PETROLEUM SERVICES -- (1.6%) Schlumberger Limited.......................... 4,530 485,843 ----------- REAL ESTATE -- (1.6%) Arden Realty Group, Incorporated.............. 3,400 92,650 Brandywine Realty Trust....................... 20,000 405,000 ----------- 497,650 ----------- RETAIL TRADE -- (2.6%) TJX Companies, Incorporated................... 18,660 797,715 ----------- TELECOMMUNICATIONS -- (6.2%) Bell Atlantic Corporation..................... 15,580 948,432 BellSouth Corporation......................... 22,260 940,485 ----------- 1,888,917 ----------- TOTAL COMMON STOCKS -- (COST $25,835,026)......... 25,924,686 -----------
See notes to financial statements. 3 7 SENECA FUNDS SENECA GROWTH FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE VALUE - -------------------------------------------------- ----------- SHORT TERM INVESTMENT -- (12.1%) REPURCHASE AGREEMENT (Cost $3,688,660) State Street Bank and Trust Company, 4.25%, to be repurchased at $3,689,095 on 04/01/97 (collateralized by $3,650,000 par value U.S. Treasury Note 7.25% due 05/15/16 with a value of $3,767,096)........................ 3,688,660 ----------- TOTAL INVESTMENTS -- (COST $29,523,686*).......... 97.6% 29,613,346 OTHER ASSETS LESS LIABILITIES..................... 2.4% 725,758 ----- ----------- NET ASSETS........................................ 100.0% $30,339,104 ===== ===========
- --------------- (1) Non-income producing security. * At March 31, 1997, the aggregate cost of investment in securities and repurchase agreements for income tax purposes was $29,523,686. Net unrealized appreciation aggregated $89,660, of which $1,122,577 related to appreciated investment securities and $1,032,917 related to depreciated investment securities. See notes to financial statements. 4 8 SENECA FUNDS SENECA MID-CAP "EDGE"(SM) FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - ------------------------------------------------- ------- ----------- COMMON STOCKS -- 94.3% ADVERTISING SERVICES -- (2.9%) Outdoor Systems, Incorporated (1)............ 10,160 $ 303,530 ----------- AIRLINES -- (1.3%) US Airways Group, Incorporated (1)........... 5,800 142,100 ----------- AEROSPACE -- (3.0%) Precision Castparts Corporation.............. 6,100 311,100 ----------- APPAREL MANUFACTURER -- (6.2%) Fruit of the Loom, Incorporated (1).......... 5,910 245,265 Jones Apparel Group, Incorporated (1)........ 4,100 152,213 Tommy Hilfiger Corporation (1)............... 4,950 258,637 ----------- 656,115 ----------- AUTO PARTS -- (0.8%) Miller Industries, Incorporated (1).......... 6,950 83,400 ----------- BROADCASTING -- (2.0%) Evergreen Media Corporation Class A (1)...... 7,185 209,712 ----------- CHEMICALS -- (4.9%) BetzDearborn, Incorporated................... 3,730 235,456 Praxair, Incorporated........................ 6,220 279,122 ----------- 514,578 ----------- COMMERCIAL SERVICES -- (3.1%) Envoy Corporation New (1).................... 7,820 182,793 TeleSpectrum Worldwide, Incorporated (1)..... 11,640 138,225 ----------- 321,018 ----------- COMPUTER SOFTWARE -- (4.8%) Intel Corporation............................ 1,930 268,511 Parametric Technology Company (1)............ 5,270 237,809 ----------- 506,320 -----------
See notes to financial statements. 5 9 SENECA FUNDS SENECA MID-CAP "EDGE"(SM) FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - ------------------------------------------------- ------- ----------- COMMON STOCKS (CONTINUED) COMPUTERS -- (3.8%) Read-Rite Corporation (1).................... 8,990 $ 226,997 Sun Microsystems, Incorporated (1)........... 6,020 173,828 ----------- 400,825 ----------- DRUGS & HEALTH CARE -- (5.3%) McKesson Corporation......................... 4,470 286,080 PacifiCare Health Systems, Incorporated (1)........................................ 1,790 154,387 Teva Pharmaceutical Industries Limited....... 2,110 117,105 ----------- 557,572 ----------- ELECTRIC UTILITY -- (0.8%) Texas Utilities Company...................... 2,470 84,598 ----------- ELECTRONICS -- (7.9%) Altera Corporation (1)....................... 7,470 321,210 Applied Materials, Incorporated (1).......... 5,000 231,875 Maxim Integrated Products, Incorporated (1)........................................ 4,950 239,456 Sanmina Corporation (1)...................... 810 36,248 ----------- 828,789 ----------- FINANCIAL SERVICES -- (11.3%) Charles Schwab Corporation................... 9,103 290,158 CMAC Investment Corporation.................. 7,340 244,972 Coast Savings Financial, Incorporated (1).... 7,510 297,584 Comerica, Incorporated....................... 6,290 354,599 ----------- 1,187,313 ----------- HOME FURNISHINGS -- (2.4%) Furniture Brands International, Incorporated (1)........................................ 16,670 250,050 ----------- HOTELS & RESTAURANTS -- (2.5%) HFS, Incorporated (1)........................ 4,490 264,349 ----------- HUMAN RESOURCES -- (0.4%) AccuStaff, Incorporated (1).................. 2,850 47,738 -----------
See notes to financial statements. 6 10 SENECA FUNDS SENECA MID-CAP "EDGE"(SM) FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - ------------------------------------------------- ------- ----------- COMMON STOCKS (CONTINUED) INSURANCE -- (2.4%) SunAmerica, Incorporated..................... 6,770 $ 254,721 ----------- LEISURE -- (3.0%) Callaway Golf Company........................ 3,630 103,909 Carnival Corporation......................... 5,700 210,900 ----------- 314,809 ----------- MACHINERY -- (1.4%) JLG Industries, Incorporated................. 7,650 150,131 ----------- MEDICAL PRODUCTS -- (1.8%) IDEXX Laboratories, Incorporated (1)......... 6,390 89,460 Nitinol Medical Technologies, Incorporated (1)........................................ 12,150 97,200 ----------- 186,660 ----------- OIL -- (4.9%) Seacor Holdings (1).......................... 5,340 286,358 Vintage Petroleum, Incorporated.............. 7,560 226,800 ----------- 513,158 ----------- RETAIL TRADE -- (8.1%) CVS Corporation.............................. 4,340 200,182 Footstar, Incorporated (1)................... 11,590 343,354 TJX Companies, Incorporated.................. 7,080 302,670 ----------- 846,206 ----------- SOFTWARE -- (5.3%) HNC Software, Incorporated (1)............... 11,430 298,609 Peoplesoft, Incorporated (1)................. 6,340 253,600 ----------- 552,209 ----------- THEATERS -- (1.9%) Regal Cinemas, Incorporated (1).............. 7,235 195,345 ----------- WATER TREATMENT SYSTEMS -- (2.1%) U.S. Filter Corporation (1).................. 7,060 217,977 ----------- TOTAL COMMON STOCKS -- (COST $10,324,942)........ 9,900,323 -----------
See notes to financial statements. 7 11 SENECA FUNDS SENECA MID-CAP "EDGE"(SM) FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE VALUE - ------------------------------------------------- ----------- SHORT TERM INVESTMENT -- (4.1%) REPURCHASE AGREEMENT(Cost $427,726) State Street Bank and Trust Company, 4.25%, to be repurchased at $427,777 on 04/01/97 (collateralized by $425,000 par value U.S. Treasury Note 7.25% due 05/15/16 with a value of $438,634)......................... $ 427,726 ----------- TOTAL INVESTMENTS -- (COST $10,752,668*)......... 98.4% 10,328,049 OTHER ASSETS LESS LIABILITIES.................... 1.6% 170,936 ----- ----------- NET ASSETS....................................... 100.0% $10,498,985 ===== ===========
- --------------- (1) Non-income producing security. * At March 31, 1997, the aggregate cost of investment in securities and repurchase agreements for income tax purposes was $10,752,668. Net unrealized depreciation aggregated $(424,619), of which $437,670, related to appreciated investment securities and $862,289, related to depreciated investment securities. See notes to financial statements. 8 12 SENECA FUNDS SENECA BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AND TITLE OF ISSUE RATE DATE AMOUNT VALUE - ------------------------------ -------- ---------- --------- ---------- CORPORATE BONDS -- 77.0% AIRLINES -- (5.0%) Alaska Airlines, Incorporated............ 9.500% 04/12/2010 121,979 $ 128,078 United Airlines, Incorporated............ 10.110% 02/19/2006 23,107 25,307 United Airlines, Incorporated............ 9.760% 05/27/2006 93,012 101,156 United Airlines, Incorporated............ 9.020% 04/19/2012 94,463 99,085 ---------- 353,626 ---------- ASSET BACKED -- (4.8%) Chrysler Financial Corporation Grantor Trust, Series 11A, Class A....................... 8.900% 08/15/1997 96,684 97,325 General Electric Capital Mortgage Services, Incorporated, Series 1994-21, Class B1....... 6.500% 08/25/2009 35,224 32,934 General Motors Acceptance Corporation Series 1994-A, Class A......... 6.300% 06/15/1999 50,415 50,607 Olympic Automobile Receivable Trust Series 1996-B.................. 6.900% 02/15/2004 120,000 120,361 Standard Credit Card Master Trust I, Series 1993-2, Class A......... 5.950% 10/07/2004 40,000 37,575 ---------- 338,802 ---------- BROADCASTING -- (8.3%) Chancellor Broadcasting Corporation............. 12.500% 10/01/2004 50,000 56,250 Chancellor Broadcasting Corporation............. 9.375% 10/01/2004 75,000 75,187 Commodore Media, Incorporated............ 7.500% 05/01/2003 150,000 163,500 Jacor, Incorporated....... 10.125% 06/15/2006 100,000 101,000 SFX Broadcasting, Incorporated............ 10.750% 05/15/2006 100,000 104,250
See notes to financial statements. 9 13 SENECA FUNDS SENECA BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AND TITLE OF ISSUE RATE DATE AMOUNT VALUE - ------------------------------ -------- ---------- --------- ---------- CORPORATE BONDS (CONTINUED) BROADCASTING (CONTINUED) Young Broadcasting Corporation............. 11.750% 11/15/2004 75,000 $ 80,625 ---------- 580,812 ---------- COMMERCIAL SERVICES -- (1.5%) Iron Mountain, Incorporated............ 10.125% 10/01/2006 100,000 103,250 ---------- DRUGS & HEALTH CARE -- (0.5%) Abbey Healthcare Group.... 9.500% 11/01/2002 25,000 26,000 Quorum Health Group, Incorporated............ 11.875% 12/15/2002 5,000 5,481 ---------- 31,481 ---------- DEFENSE -- (1.4%) Tracor, Incorporated...... 8.500% 03/01/2007 100,000 97,500 ---------- ENERGY -- (7.3%) El Paso Tenneco........... 9.140% 12/31/2001 300,000 300,000 SFP Pipeline Holdings..... 11.160% 08/15/2010 175,000 211,496 ---------- 511,496 ---------- FINANCE & BANKING -- (16.1%) Aetna Services, Incorporated............ 7.625% 08/15/2026 75,000 72,088 Countrywide Capital Incorporated............ 8.000% 12/15/2026 200,000 192,527 Countrywide Funding....... 5.900% 04/22/1999 30,000 29,942 Bear Stearns Company, Incorporated............ 5.520% 08/26/1997 60,000 59,969 Dollar Financial Group.... 10.875% 11/15/2006 150,000 151,500 Donaldson Lufkin & Jenrette................ 6.875% 11/01/2005 50,000 47,585 Lehman Brothers Holdings................ 8.800% 03/01/2015 80,000 87,234 Security Capital Pacific Trust................... 7.900% 02/15/2016 200,000 189,874 Societe Generale New York.................... 7.400% 06/01/2006 90,000 89,021
See notes to financial statements. 10 14 SENECA FUNDS SENECA BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AND TITLE OF ISSUE RATE DATE AMOUNT VALUE - ------------------------------ -------- ---------- --------- ---------- CORPORATE BONDS (CONTINUED) FINANCE & BANKING (CONTINUED) Wells Fargo Capital A..... 8.125% 12/01/2026 100,000 $ 96,942 Wells Fargo Capital B..... 7.950% 12/01/2026 125,000 119,194 ---------- 1,135,876 ---------- GAMES, TOYS -- (2.2%) Mattel, Incorporated...... 10.125% 08/15/2002 150,000 156,938 ---------- GROCERY STORES -- (1.3%) Smith's Food & Drug Centers, Incorporated... 8.640% 07/02/2012 100,000 94,500 ---------- HOTELS -- (8.5%) Caesars World............. 8.875% 08/15/2002 220,000 229,900 California Hotels Finance................. 11.000% 12/01/2002 75,000 78,750 Casino America............ 11.500% 11/15/2001 75,000 80,133 John Q. Hammons Hotels.... 8.875% 02/15/2004 30,000 29,475 John Q. Hammons Hotels.... 9.750% 10/01/2005 100,000 101,750 Wyndham Hotel Corporation............. 10.500% 05/15/2006 75,000 78,938 ---------- 598,946 ---------- INDUSTRIAL -- (0.5%) MVE, Incorporated......... 12.500% 02/15/2002 30,000 32,100 ---------- MULITMEDIA -- (8.0%) Cablevision Industries Corporation............. 9.250% 04/01/2008 90,000 93,432 Continental Cablevision... 10.625% 06/15/2002 115,000 122,007 Continental Cablevision... 8.875% 09/15/2005 100,000 107,619 Continental Cablevision... 8.300% 05/15/2006 30,000 31,107 News Corporation Limited................. 0.000% 06/15/1999 200,000 172,000 Time Warner, Incorporated............ 9.125% 01/15/2013 35,000 37,178 ---------- 563,343 ----------
See notes to financial statements. 11 15 SENECA FUNDS SENECA BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AND TITLE OF ISSUE RATE DATE AMOUNT VALUE - ------------------------------ -------- ---------- --------- ---------- CORPORATE BONDS (CONTINUED) OFFICE SUPPLIES -- (1.6%) Corporate Express, Incorporated............ 9.125% 03/15/2004 75,000 $ 74,062 Scotsman Group............ 9.500% 12/15/2000 40,000 40,900 ---------- 114,962 ---------- REAL ESTATE -- (5.2%) ERP Operating Limited Partnership............. 7.570% 08/15/2026 150,000 149,979 Spieker Properties, Incorporated............ 8.000% 07/19/2005 100,000 101,179 Property Trust America.... 6.875% 02/15/2008 5,000 4,742 Washington REIT........... 7.125% 08/13/2003 110,000 108,202 ---------- 364,102 ---------- THEATERS -- (4.8%) Cobb Theaters, Incorporated............ 10.625% 03/01/2003 100,000 103,250 Plitt Theaters, Incorporated............ 10.875% 06/15/2004 75,000 76,313 United Artists Theatre Circuit, Incorporated Sr. Secured Notes, Series B................ 11.500% 05/01/2002 150,000 157,688 ---------- 337,251 ---------- TOTAL CORPORATE BONDS -- (COST $5,429,286)......... 5,414,985 ---------- U.S. GOVERNMENT AGENCIES -- (8.8%) COLLATERALIZED MORTGAGE OBLIGATION -- (8.5%) Federal Home Loan Mortgage Corporation, REMIC, Series 151, Class E..... 9.000% 09/15/2020 35,227 35,814 Federal Home Loan Mortgage Corporation, REMIC, Series 1032, Class E.... 8.750% 12/15/2020 36,590 37,643
See notes to financial statements. 12 16 SENECA FUNDS SENECA BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AND TITLE OF ISSUE RATE DATE AMOUNT VALUE - ------------------------------ -------- ---------- --------- ---------- U.S. GOVERNMENT AGENCIES (CONTINUED) COLLATERALIZED MORTGAGE OBLIGATION (CONTINUED) Federal Home Loan Mortgage Corporation, REMIC, Series 1142, Class H.... 7.950% 12/15/2020 300,000 $ 305,126 Federal National Mortgage Association, REMIC, Series 1989-80, Class E....................... 9.000% 09/25/2018 88,782 91,112 Federal National Mortgage Association, REMIC, Series 1990-4, Class G....................... 8.750% 05/25/2017 90,070 92,473 Federal National Mortgage Association, I.O........ 2.844% 10/25/2023 722,764 33,880 ---------- 596,048 ---------- MORTGAGE-BACKED PASS-THROUGH SECURITY -- (0.3%) Government National Mortgage Association, Pool #408215............ 7.000% 02/15/2026 24,037 22,940 ---------- TOTAL U.S. GOVERNMENT AGENCIES -- (COST $622,868)........................................ 618,988 ---------- FOREIGN BONDS -- (2.4%) CORPORATE -- (2.0%) NAV Canada................ 6.450% 06/01/2004 200,000 143,100 ---------- GOVERNMENT -- (0.4%) Republic of Brazil........ 6.500% 01/01/2001 26,100 25,545 ---------- TOTAL FOREIGN BONDS -- (COST $170,711)............. 168,645 ---------- SHARES ------ PREFERRED STOCK -- 2.3% -- (COST $159,750) Microsoft Corporation, Pfd Series A................ 2,000 162,250 ----------
See notes to financial statements. 13 17 SENECA FUNDS SENECA BOND FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - ------------------------------ --------- ---------- OPTIONS -- 0.2% (COST $12,546) Canadian Dollar Put Option, Expire 3/98.................................. 206,324 $ 13,700 ---------- WARRANTS -- 0.0% (COST $0) MVE, Incorporated, Expire 2/02................. 30 0 ---------- TOTAL INVESTMENTS IN SECURITIES -- (COST $6,395,161)...................................... 6,378,568 ---------- SHORT TERM INVESTMENTS -- 5.0% (Cost $351,649) INTEREST MATURITY PRINCIPAL RATE DATE AMOUNT -------- ---------- --------- COMMERCIAL PAPER Airtouch Communications... 6.85% 04/01/1997 300,000 300,000 ---------- REPURCHASE AGREEMENT State Street Bank and Trust Company, 4.25%, to be repurchased at $51,655 on 04/01/97 (collateralized by $52,000 par value U.S. Treasury Note 7.25% due 05/15/16, with a value of $53,668)............................ 51,649 ---------- TOTAL SHORT TERM INVESTMENTS....................... 351,649 ---------- TOTAL INVESTMENTS -- (COST $6,746,810*)............ 95.7% 6,730,217 OTHER ASSETS LESS LIABILITIES...................... 4.3% 306,364 ----- ---------- NET ASSETS......................................... 100.0% $7,036,581 ===== ==========
- --------------- * At March 31, 1997, the aggregate cost of investment in securities and repurchase agreements for income tax purposes was $6,746,810. Net unrealized depreciation aggregated $(16,593), of which $49,097 related to appreciated investment securities and $65,690 related to depreciated investment securities. See notes to financial statements. 14 18 SENECA FUNDS SENECA REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - ----------------------------------------------- ------- ----------- COMMON STOCKS -- 95.6% FINANCIAL SERVICES -- 3.0% Federal National Mortgage Association...... 11,000 $ 397,375 Green Tree Financial Corporation........... 7,700 259,875 ----------- 657,250 ----------- HOTELS AND RESTAURANTS -- 4.7% Circus Circus Entertainment(1)............. 19,400 504,400 Host Marriott Corporation(1)............... 29,000 493,000 ----------- 997,400 ----------- REAL ESTATE DEVELOPMENT -- 3.8% Catellus Development Corporation(1)........ 52,400 799,100 ----------- REAL ESTATE INVESTMENT TRUSTS -- 84.1% Ambassador Apartments, Incorporated........ 20,300 507,500 American General Hospitality Corporation... 18,000 490,500 Apartment Investment and Management Company Class A.................................. 17,470 508,814 Avalon Properties, Incorporated............ 13,100 360,250 Bedford Property Investors, Incorporated... 17,000 335,750 Cali Realty Corporation.................... 26,000 832,000 CarrAmerica Realty Corporation............. 10,000 307,500 CBL & Associates Properties, Incorporated............................. 7,000 171,500 Centerpoint Properties..................... 19,700 603,312 Developers Diversified Realty Corporation.............................. 12,200 460,550 Equity Residential Properties Trust........ 19,900 883,062 Evans Withycombe Residential, Incorporated............................. 28,000 577,500 Felcor Suite Hotels, Incorporated.......... 19,275 708,356 First Industrial Realty Trust, Incorporated............................. 14,000 442,750 Glenborough Realty Trust, Incorporated..... 13,000 260,000 Highwoods Properties, Incorporated......... 14,975 501,662 Irvine Apartment Communities, Incorporated............................. 13,436 381,247 Liberty Property Trust..................... 29,550 723,975 Manufactured Home Communities.............. 27,700 605,938 Pacific Gulf Properties, Incorporated...... 31,750 690,562 Patriot American Hospitality, Incorporated............................. 46,360 1,124,230 Prentiss Properties Trust.................. 16,200 411,075
See notes to financial statements. 15 19 SENECA FUNDS SENECA REAL ESTATE SECURITIES FUND SCHEDULE OF INVESTMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED)
NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE - ----------------------------------------------- ------- ----------- (CONTINUED)REAL ESTATE INVESTMENT TRUSTS (CONTINUED) Redwood Trust, Incorporated................ 14,800 $ 684,600 Security Capital Atlantic, Incorporated.... 16,800 373,800 Security Capital Pacific Trust............. 23,600 575,250 Simon Debartolo Group, Incorporated........ 20,615 623,604 Speiker Properties, Incorporated........... 32,000 1,248,000 Sunstone Hotel Investors, Incorporated..... 28,900 379,313 The Macerich Company....................... 20,000 560,000 Thornburg Mortgage Asset Association....... 23,700 450,300 TriNet Corporate Realty Trust, Incorporated............................. 21,500 679,938 Urban Shopping Centers, Incorporated....... 15,000 450,000 ----------- 17,912,838 ----------- TOTAL COMMON STOCKS -- (COST $19,409,477)...... 20,366,588 ----------- SHORT TERM INVESTMENT -- 7.5% REPURCHASE AGREEMENT (Cost $1,593,315) State Street Bank and Trust Company, 4.25%, to be repurchased at $1,593,503 on 04/01/97 (collateralized by $1,575,000 par value U.S. Treasury Note 7.25% due 05/15/16, with a value of $1,625,528).... 1,593,315 ----------- TOTAL INVESTMENTS -- (COST $21,002,792*)....... 103.1% 21,959,903 OTHER ASSETS LESS LIABILITIES.................. (3.1)% (666,509) ----- ----------- NET ASSETS..................................... 100.0% $21,293,394 ===== ===========
- --------------- (1) Non-income producing security. * At March 31, 1997, the aggregate cost of investment in securities and repurchase agreements for income tax purposes was $21,002,792. Net unrealized appreciation aggregated $957,111, of which $1,448,436 related to appreciated investment securities and $491,326 related to depreciated investment securities. See notes to financial statements. 16 20 SENECA FUNDS STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 1997 (UNAUDITED)
MID-CAP REAL ESTATE "EDGE"(SM) SECURITIES GROWTH FUND FUND BOND FUND FUND ----------- ----------- ---------- ----------- ASSETS Investments in securities, at value (Note 2)............. $25,924,686 $ 9,900,323 $6,378,568 $20,366,588 Short Term Investments....... 3,688,660 427,726 351,649 1,593,315 Cash......................... -- -- -- 12,593 Dividends and interest receivable................. 20,798 7,105 128,520 107,537 Receivable for securities sold....................... 409,177 150,890 29,500 -- Receivable for Fund shares sold....................... 1,388,364 201,953 390,853 100,602 Deferred organizational costs (Note 5)................... 40,740 41,112 40,740 40,740 Due from Investment Manager (Note 3)................... 13,644 40,853 47,053 64,839 ----------- ----------- ---------- ----------- TOTAL ASSETS............... 31,486,069 10,769,962 7,366,883 22,286,214 LIABILITIES Payable for securities purchased.................. 1,083,551 227,237 305,438 915,332 Payable for fund shares redeemed................... 1,000 4,141 1,341 18,948 Trustees fees payable (Note 3)......................... 2,476 2,475 2,476 2,476 Distribution fees payable (Note 3)................... 1,726 1,784 -- 1,071 Other accrued expenses....... 58,212 35,340 21,047 54,993 ----------- ----------- ---------- ----------- TOTAL LIABILITIES.......... 1,146,965 270,977 330,302 992,820 ----------- ----------- ---------- ----------- NET ASSETS................. $30,339,104 $10,498,985 $7,036,581 $21,293,394 =========== =========== ========== =========== NET ASSETS Capital paid-in.............. $30,006,228 $11,413,652 $7,033,332 $19,928,855 Undistributed net investment income..................... (7,768) (58,848) (14,604) (8,326) Accumulated net realized gain (loss) on investments...... 250,984 (431,200) 34,446 415,754 Net unrealized appreciation (depreciation) of investments................ 89,660 (424,619) (16,593) 957,111 ----------- ----------- ---------- ----------- NET ASSETS................. $30,339,104 $10,498,985 $7,036,581 $21,293,394 =========== =========== ========== =========== INVESTMENTS IN SECURITIES, AT COST....................... $25,835,026 $10,324,942 $6,395,161 $19,409,477 INSTITUTIONAL SHARES: Net Assets................. $26,253,892 $ 8,112,750 $7,036,581 $18,780,885 Total shares outstanding... 1,992,400 661,953 701,807 1,457,227 Net asset value, offering and redemption price per Institutional share........ $ 13.18 $ 12.26 $ 10.03 $ 12.89 =========== =========== ========== ===========
See notes to financial statements. 17 21 SENECA FUNDS STATEMENTS OF ASSETS AND LIABILITIES MARCH 31, 1997 (CONTINUED) (UNAUDITED)
MID-CAP REAL ESTATE "EDGE"(SM) SECURITIES GROWTH FUND FUND BOND FUND FUND ----------- ----------- ---------- ----------- ADMINISTRATIVE SHARES: Net Assets................. $ 4,085,212 $ 2,386,235 $ -- $ 2,512,509 Total shares outstanding... 311,837 194,011 -- 195,261 Net asset value, offering and redemption price per Administrative share....... $ 13.10 $ 12.30 $ -- $ 12.87 =========== =========== ========== ===========
See notes to financial statements. 18 22 SENECA FUNDS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
MID-CAP REAL ESTATE GROWTH "EDGE"(SM) BOND SECURITIES FUND FUND FUND FUND --------- ----------- --------- ----------- INVESTMENT INCOME Dividends..................... $ 116,385 $ 12,519 $ 1,013 $ 267,257 Interest...................... 70,075 33,209 230,033 51,719 --------- ----------- --------- ---------- TOTAL INCOME................ 186,460 45,728 231,046 318,976 ========= =========== ========= ========== EXPENSES Management fee(Note 3)........ 74,087 42,872 14,502 55,447 Administrative fee(Note 3).... 32,973 32,338 32,582 32,752 Transfer agent fees........... 27,653 29,662 12,042 19,905 Custodian fees................ 22,080 20,838 19,048 21,560 Distribution fees(Note 3)..... 2,036 2,867 139 1,324 Registration and filing fees........................ 9,930 8,410 8,090 8,694 Audit fees.................... 8,945 8,945 7,445 7,445 Legal fees.................... 12,638 12,638 12,638 12,638 Trustees fees................. 4,979 4,979 4,979 4,979 Amortization of organization expenses(Note 5)............ 23,663 23,505 23,663 23,663 Other......................... 1,942 1,950 2,192 2,392 --------- ----------- --------- ---------- Expenses before waiver and reimbursement............... 220,926 189,004 137,320 190,799 Fees waived and expenses reimbursed by Investment Manager (Note 3)............ (75,835) (109,069) (106,399) (70,123) --------- ----------- --------- ---------- TOTAL EXPENSES.............. 145,091 79,935 30,921 120,676 --------- ----------- --------- ---------- NET INVESTMENT INCOME....... 41,369 (34,207) 200,125 198,300 --------- ----------- --------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investments................. 302,111 (431,241) 35,346 422,877 Change in net unrealized appreciation of investments................. (529,759) (1,442,394) (66,198) 892,945 --------- ----------- --------- ---------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS....... (227,648) (1,873,635) (30,852) 1,315,822 --------- ----------- --------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $(186,279) $(1,907,842) $ 169,273 $1,514,122 ========= =========== ========= ==========
See notes to financial statements. 19 23 SENECA FUNDS STATEMENTS OF CHANGES IN NET ASSETS
MID-CAP GROWTH "EDGE" (SM) FUND FUND --------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED PERIOD ENDED PERIOD MARCH 31, ENDED MARCH 31, ENDED 1997 SEPTEMBER 30, 1997 SEPTEMBER 30, (UNAUDITED) 1996* (UNAUDITED) 1996* ------------ ------------- ------------ ------------- INCREASE IN NET ASSETS From operations: Net investment income............. $ 41,369 $ 32,326 $ (34,207) $ 4,615 Net realized gain (loss) on investments........ 302,111 965,464 (431,241) 77,414 Change in net unrealized appreciation of investments........ (529,759) 619,419 (1,442,394) 1,017,775 ----------- ----------- ----------- ----------- Net (decrease) increase in net assets resulting from operations.... (186,279) 1,617,209 (1,907,842) 1,099,804 Dividends and Distributions to shareholders from Net investment income: Administrative Shares........... (328) -- (7) -- Institutional Shares........... (99,420) -- (47,399) -- Net realized gains: Administrative Shares........... (18,738) -- (12,055) -- Institutional Shares........... (997,853) -- (65,318) -- Net increase from Fund share transactions (Note 6)............. 18,255,796 11,743,717 3,748,457 7,658,345 ----------- ----------- ----------- ----------- TOTAL INCREASE... 16,953,178 13,360,926 1,715,836 8,758,149 Net Assets Beginning of period............. 13,385,926 25,000 8,783,149 25,000 ----------- ----------- ----------- ----------- End of period (a).... $30,339,104 $13,385,926 $10,498,985 $ 8,783,149 =========== =========== =========== =========== (a) Including undistributed net investment income............. $ (7,768) $ 50,611 $ (58,848) $ 22,765
- --------------- * The Growth, Mid-Cap "EDGE"(SM), Bond, and Real Estate Securities Funds commenced investment operations on March 8, 1996, March 8, 1996, March 7, 1996, and March 12, 1996, respectively. See notes to financial statements. 20 24 SENECA FUNDS STATEMENTS OF CHANGES IN NET ASSETS
REAL ESTATE BOND SECURITIES FUND FUND -------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED PERIOD ENDED PERIOD MARCH 31, ENDED MARCH 31, ENDED 1997 SEPTEMBER 30, 1997 SEPTEMBER 30, (UNAUDITED) 1996* (UNAUDITED) 1996* ----------- ------------- ------------ ------------- INCREASE IN NET ASSETS From operations: Net investment income............. $ 200,125 $ 93,149 $ 198,300 $ 8,501 Net realized gain (loss) on investments........ 35,346 13,694 422,877 (2,568) Change in net unrealized appreciation of investments........ (66,198) 49,605 892,945 64,166 ---------- ----------- ----------- ----------- Net increase in net assets resulting from operations.... 169,273 156,448 1,514,122 70,099 Dividends and Distributions to shareholders from Net investment income: Administrative Shares........... (2,145) (1,994) (14,219) (1,227) Institutional Shares........... (232,011) (90,013) (210,788) (7,178) Net realized gains: Administrative Shares........... (672) -- (194) -- Institutional Shares........... (13,922) -- (4,361) -- Net increase from Fund share transactions (Note 6)............. 2,993,464 4,033,153 18,713,271 1,208,869 ---------- ----------- ----------- ----------- TOTAL INCREASE... 2,913,987 4,097,594 19,997,831 1,270,563 Net Assets Beginning of period............. 4,122,594 25,000 1,295,563 25,000 ---------- ----------- ----------- ----------- End of period (a).... $7,036,581 $ 4,122,594 $21,293,394 $ 1,295,563 ========== =========== =========== =========== (a) Including undistributed net investment income............. $ (14,604) $ 19,427 $ (8,326) $ 18,381
- --------------- * The Growth, Mid-Cap "EDGE"(SM), Bond, and Real Estate Securities Funds commenced investment operations on March 8, 1996, March 8, 1996, March 7, 1996, and March 12, 1996, respectively. See notes to financial statements. 21 25 SENECA FUNDS FINANCIAL HIGHLIGHTS INSTITUTIONAL SHARES
MID-CAP GROWTH FUND "EDGE"(SM) FUND -------------------------- -------------------------- SIX MONTHS SIX MONTHS ENDED PERIOD ENDED PERIOD MARCH 31, ENDED MARCH 31, ENDED 1997 SEPTEMBER 30, 1997 SEPTEMBER 30, (UNAUDITED) 1996* (UNAUDITED) 1996* ----------- ------------- ----------- ------------- Net Asset Value at Beginning of Period........................ $ 13.74 $ 10.00 $ 14.97 $ 10.00 ----------- ----------- ---------- ---------- Income from Investment Operations: Net Investment Income (Loss) (1)................... (0.01) 0.03 (0.03) 0.01 Net Realized and Unrealized Gain on Investments.......... 0.29 3.71 (2.51) 4.96 ----------- ----------- ---------- ---------- Total from Investment Operations................... 0.28 3.74 (2.54) 4.97 ----------- ----------- ---------- ---------- Distributions to Shareholders from Net Investment Income..... (0.07) -- (0.07) -- Net Realized Gains............. (0.77) -- (0.10) -- ----------- ----------- ---------- ---------- Total Distribution............. (0.84) -- (0.17) -- ----------- ----------- ---------- ---------- Net Asset Value at End of Period......................... $ 13.18 $ 13.74 $ 12.26 $ 14.97 =========== =========== ========== ========== Total Return (2)................ 2.09% 37.40% (17.15)% 49.70% Ratios & Supplemental Data Net Assets at End of Period.... $26,253,892 $12,919,525 $8,112,750 $ 7,427,656 Ratio of Operating Expenses to Average Net Assets (3)....... 1.30% 0.81% 1.34% 0.90% Ratio of Operating Expenses to Average Net Assets (3)(4).... 1.93% 3.49% 3.19% 5.73% Ratio of Net Investment Income (Loss) to Average Net Assets (3).......................... 0.46% 0.76% (.49)% 0.27% Portfolio Turnover Rate........ 72.23% 87.66% 112.29% 72.34% Average Commission Rate (5).... $ 0.0598 $ 0.0598 $ 0.0591 $ 0.0595
- --------------- * The Growth, Mid-Cap "EDGE"(SM), Bond, and Real Estate Securities Funds commenced investment operations on March 8, 1996, March 8, 1996, March 7, 1996, and March 12, 1996, respectively. (1)-(5) See page 23. See notes to financial statements. 22 26 SENECA FUNDS FINANCIAL HIGHLIGHTS INSTITUTIONAL SHARES (CONTINUED) (1) Net investment income (loss) is after waiver of certain fees and reimbursement of certain expenses by the Investment Manager (see Note 3 to the financial statements). If the Investment Manager had not waived fees and reimbursed expenses, net investment income (loss) per share would have been as follows for the six months ended March 31, 1997 and the period ended September 30, 1996, respectively: $(0.02) and $(0.09) for the Growth Fund; $(0.19) and $(0.19) for the Mid-Cap "EDGE"(SM) Fund. (2) Total return represents total return for the period indicated. The total return would have been lower if certain fees and expenses had not been waived or reimbursed by the advisor. (3) Annualized. (4) If the Investment Manager had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been as indicated. (5) The average commission paid is applicable for the Funds that invest greater than 10% of average net assets in equity securities transactions on which commissions are charged. See notes to financial statements. 23 27 SENECA FUNDS FINANCIAL HIGHLIGHTS INSTITUTIONAL SHARES
REAL ESTATE BOND FUND SECURITIES FUND -------------------------- --------------------------- SIX MONTHS SIX MONTHS ENDED PERIOD ENDED PERIOD MARCH 31, ENDED MARCH 31, ENDED 1997 SEPTEMBER 30, 1997 SEPTEMBER 30, (UNAUDITED) 1996* (UNAUDITED) 1996* ----------- ------------- ------------ ------------- Net Asset Value at Beginning of Period................... $ 10.09 $ 10.00 $ 11.10 $ 10.00 ---------- ----------- ----------- ----------- Income from Investment Operations: Net Investment Income (1).... 0.32 0.31 -- 0.13 Net Realized and Unrealized Gain on Investments........ 0.03 0.08 1.97 1.10 ---------- ----------- ----------- ----------- Total from Investment Operations................. 0.35 0.39 1.97 1.23 ---------- ----------- ----------- ----------- Distributions to Shareholders from Net Investment Income........ (0.39) (0.30) (0.17) (0.13) Net Realized Gains........... (0.02) -- (0.01) -- ---------- ----------- ----------- ----------- Total Distribution........... (0.41) (0.30) (0.18) (0.13) ---------- ----------- ----------- ----------- Net Asset Value at End of Period....................... $ 10.03 $ 10.09 $ 12.89 $ 11.10 ========== =========== =========== =========== Total Return (2)........... 3.47% 4.02% 17.70% 12.39% Ratios & Supplemental Data Net Assets at End of Period..................... $7,036,581 $ 3,926,664 $18,780,885 $ 1,073,080 Ratio of Operating Expenses to Average Net Assets (3)........................ 1.09% 0.56% 1.79% 1.00% Ratio of Operating Expenses to Average Net Assets (3)(4)..................... 4.71% 9.31% 2.69% 53.04% Ratio of Net Investment Income (Loss) to Average Net Assets (3)............. 6.99% 7.54% 3.11% 4.39% Portfolio Turnover Rate...... 63.27% 52.82% 63.99% 30.70% Average Commission Rate (5)........................ N/A N/A $ 0.0564 $ 0.0564
- --------------- * The Growth, Mid-Cap "EDGE"(SM), Bond, and Real Estate Securities Funds commenced investment operations on March 8, 1996, March 8, 1996, March 7, 1996, and March 12, 1996, respectively. (1)-(5) See page 25. See notes to financial statements. 24 28 SENECA FUNDS FINANCIAL HIGHLIGHTS INSTITUTIONAL SHARES (CONTINUED) (1) Net investment income is after waiver of certain fees and reimbursement of certain expenses by the Investment Manager (see Note 3 to the financial statements). If the Investment Manager had not waived fees and reimbursed expenses, net investment income (loss) per share would have been as follows for the six months ended March 31, 1997 and the period ended September 30, 1996, respectively: $0.16 and $(0.05) for the Bond Fund; $0.00 and $(1.45) for the Real Estate Securities Fund. (2) Total return represents total return for the period indicated. The total return would have been lower if certain fees and expenses had not been waived or reimbursed by the advisor. (3) Annualized. (4) If the Investment Manager had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been as indicated. (5) The average commission paid is applicable for the Funds that invest greater than 10% of average net assets in equity securities transactions on which commissions are charged. See notes to financial statements. 25 29 SENECA FUNDS FINANCIAL HIGHLIGHTS ADMINISTRATIVE SHARES
MID-CAP GROWTH FUND "EDGE"(SM) FUND -------------------------- -------------------------- SIX MONTHS SIX MONTHS ENDED PERIOD ENDED PERIOD MARCH 31, ENDED MARCH 31, ENDED 1997 SEPTEMBER 30, 1997 SEPTEMBER 30, (UNAUDITED) 1996* (UNAUDITED) 1996* ----------- ------------- ----------- ------------- Net Asset Value at Beginning of Period................... $ 13.63 $ 10.00 $ 14.94 $ 10.00 ---------- -------- ---------- ---------- Income from Investment Operations: Net Investment Income (Loss) (1)....................... (0.03) -- (0.08) (0.01) Net Realized and Unrealized Gain on Investments....... 0.27 3.63 (2.46) 4.95 ---------- -------- ---------- ---------- Total from Investment Operations................ 0.24 3.63 (2.54) 4.94 ---------- -------- ---------- ---------- Distributions to Shareholders from Net Investment Income....... -- -- -- -- Net Realized Gains.......... (0.77) -- (0.10) -- ---------- -------- ---------- ---------- Total Distribution.......... (0.77) -- (0.10) -- ---------- -------- ---------- ---------- Net Asset Value at End of Period...................... $ 13.10 $ 13.63 $ 12.30 $ 14.94 ========== ========= ========== =========== Total Return (2).......... 1.80% 36.30% (17.02)% 49.30% Ratios & Supplemental Data Net Assets at End of Period.................... $4,085,212 $ 466,401 $2,386,235 $ 1,355,493 Ratio of Operating Expenses to Average Net Assets (3)....................... 2.25% 1.46% 2.05% 1.55% Ratio of Operating Expenses to Average Net Assets (3)(4).................... 3.93% 14.01% 4.75% 9.73% Ratio of Net Investment Income (Loss) to Average Net Assets (3)............ (0.44)% 0.16% (1.19)% (0.46)% Portfolio Turnover Rate..... 72.23% 87.66% 112.29% 72.34% Average Commission Rate (5).................. $ 0.0598 $ 0.0598 $ 0.0591 $ 0.0595
- --------------- * The Growth, Mid-Cap "EDGE"(SM), Bond, and Real Estate Securities Funds commenced investment operations on March 8, 1996, March 8, 1996, March 7, 1996, and March 12, 1996, respectively. (1)-(5) See page 27. See notes to financial statements. 26 30 SENECA FUNDS FINANCIAL HIGHLIGHTS ADMINISTRATIVE SHARES (CONTINUED) (1) Net investment income (loss) is after waiver of certain fees and reimbursement of certain expenses by the Investment Manager (see Note 3 to the financial statements). If the Investment Manager had not waived fees and reimbursed expenses, net investment income (loss) per share would have been as follows for the six months ended March 31, 1997 and the period ended September 30, 1996, respectively: $(0.16) and $(0.34) for the Growth Fund; $(0.27) and $(0.20) for Mid-Cap "EDGE"(SM) Fund. (2) Total return represents total return for the period indicated. The total return would have been lower if certain fees and expenses had not been waived or reimbursed by the advisor. (3) Annualized. (4) If the Investment Manager had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been as indicated. (5) The average commission paid is applicable for the Funds that invest greater than 10% of average net assets in equity securities transactions on which commissions are charged. See notes to financial statements. 27 31 SENECA FUNDS FINANCIAL HIGHLIGHTS ADMINISTRATIVE SHARES
REAL ESTATE BOND FUND SECURITIES FUND --------------------------- --------------------------- SIX MONTHS PERIOD ENDED PERIOD ENDED PERIOD DECEMBER 26, ENDED MARCH 31, ENDED 1996** SEPTEMBER 30, 1997 SEPTEMBER 30, (UNAUDITED) 1996* (UNAUDITED) 1996* ------------ ------------- ------------ ------------- Net Asset Value at Beginning of Period........................ $ 10.09 $ 10.00 $ 11.08 $ 10.00 -------- --------- ---------- --------- Income from Investment Operations: Net Investment Income (Loss) (1)......................... 0.06 0.29 (0.03) 0.13 Net Realized and Unrealized Gain on Investments......... 0.21 0.09 1.95 1.08 -------- --------- ---------- --------- Total from Investment Operations.................. 0.27 0.38 1.92 1.21 -------- --------- ---------- --------- Distributions to Shareholders from Net Investment Income......... (0.11) (0.29) (0.12) (0.13) Net Realized Gains............ (0.02) -- (0.01) -- -------- --------- ---------- --------- Total Distribution............ (0.13) (0.29) (0.13) (0.13) -------- --------- ---------- --------- Net Asset Value at End of Period........................ $ 10.23 $ 10.09 $ 12.87 $ 11.08 ======== ========= ========== ========= Total Return(2)............. 2.70% 3.86% 17.34% 12.22% Ratios & Supplemental Data Net Assets at End of Period... $250,425 $ 195,930 $2,512,509 $ 222,483 Ratio of Operating Expenses to Average Net Assets (3)...... 1.30% 1.21% 2.54% 1.65% Ratio of Operating Expenses to Average Net Assets (3)(4)... 6.02% 39.23% 5.58% 73.01% Ratio of Net Investment Income to Average Net Assets (3)... 2.35% 6.46% 2.24% 4.61% Portfolio Turnover Rate....... 63.27% 52.82% 63.99% 30.70% Average Commission Rate (5)... N/A N/A $ 0.0564 $ 0.0564
- --------------- * The Growth, Mid-Cap "EDGE"(SM), Bond, and Real Estate Securities Funds commenced investment operations on March 8, 1996, March 8, 1996, March 7, 1996, and March 12, 1996, respectively. ** As of December 26, 1996, the Bond Fund Administrative Shares merged with Bond Fund Institutional Shares. (1)-(5) See page 29. See notes to financial statements. 28 32 SENECA FUNDS FINANCIAL HIGHLIGHTS ADMINISTRATIVE SHARES (CONTINUED) (1) Net investment income (loss) is after waiver of certain fees and reimbursement of certain expenses by the Investment Manager (see Note 3 to the financial statements). If the Investment Manager had not waived fees and reimbursed expenses, net investment income (loss) per share would have been As follows for the six months ended March 31, 1997 and the period ended September 30, 1996, respectively: $(0.06) and $(1.41) for the Bond Fund; $(0.35) and $(1.96) for the Real Estate Securities Fund. (2) Total return represents total return for the period indicated. The total return would have been lower if certain fees and expenses had not been waived or reimbursed by the advisor. (3) Annualized. (4) If the Investment Manager had not waived fees and reimbursed expenses, the ratio of operating expenses to average net assets would have been as indicated. (5) The average commission paid is applicable for the Funds that invest greater than 10% of average net assets in equity securities transactions on which commissions are charged. See notes to financial statements. 29 33 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (UNAUDITED) NOTE 1 -- ORGANIZATION Seneca Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was organized as a Delaware business trust on December 18, 1995 and was declared effective as March 1, 1996. The Trust consists of four series: Seneca Growth Fund, Seneca Mid-Cap "EDGE"(sm) Fund, Seneca Bond Fund and Seneca Real Estate Securities Fund (individually, the "Fund," and collectively, the "Funds.") The Board of Trustees has authorized each Fund to issue two classes of common shares: Administrative Shares and Institutional Shares. NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES VALUATION OF INVESTMENTS: Equity securities traded on a national securities exchange are valued at their last sales price on the exchange on which they are traded most extensively; or if no sales are reported, at the mean between the most recent high bid and the most recent low asked quotations (the "Calculated Mean") on such exchange. Securities traded on the National Association of Securities Dealers Automated Quotation ("Nasdaq") system will be valued at the most recent sales price reported on such system on the valuation date or, if there are no sales reported, the Calculated Mean based on quotations reported on Nasdaq. Securities not quoted on Nasdaq but traded in an over-the-counter market will be valued at the most recent sale price if the sales price for any sales of the security on the valuation date are reported on such market or, if there are no such sales, the Calculated Mean based on quotations reported on such market. In each case, if there is no Calculated Mean, the value shall be the most recent bid quotation on the relevant market. Fixed income securities, other than those having a maturity of 60 days or less, are valued on the basis of quotes obtained from brokers or pricing services. Short-term investments having a maturity of 60 days or less will be valued at amortized cost. If, in the Investment Manager's opinion, the fair market value of an investment cannot be determined pursuant to the foregoing procedures, the value will be an amount that, in the opinion of the Trustees, 30 34 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) represents the fair market value determined based on all available information. REPURCHASE AGREEMENTS: Each Fund may enter into repurchase agreements. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed upon price. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. Securities pledged as collateral for the repurchase agreement are held by the Fund's Custodian until maturity date of the repurchase agreement. The Fund's risk is the ability of the seller to pay the agreed-upon price on delivery date. The Trustees have established criteria to evaluate the creditworthiness of parties with whom the Funds may enter into repurchase agreements. The Funds limit the repurchase agreements to securities issued by the United States Government, its agencies, and its instrumentalities. The market value of the underlying security throughout the term of the agreement will always equal or exceed the agreed-upon repurchase price. SECURITY TRANSACTIONS, INVESTMENT INCOME and EXPENSES: Investment security transactions are recorded as of trade date. Realized gains and losses on investment security sales are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date. Interest income and expenses are recorded daily on an accrual basis. Fund expenses not directly attributable to a specific fund are allocated evenly among all funds. Fund expenses that are not related to the distribution of shares of a particular class or to services provided specifically to a particular class are allocated between the classes on the basis of relative average daily net assets of each class. Expenses that relate to the distribution or services provided to a particular class are allocated to that class. Investment income and realized and unrealized gains/losses are allocated between the classes on the basis of net assets of each class. DIVIDENDS AND DISTRIBUTIONS: Dividends from net investment income on shares of the Seneca Bond Fund are determined at 31 35 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) the fund level and are declared and paid monthly. Dividends from net investment income on shares of the Seneca Real Estate Securities Fund are determined at the class level and are declared and paid quarterly. Dividends from net investment income on shares of the Seneca Growth Fund and Seneca Mid-Cap "EDGE"(SM) Fund are determined at the class level and are declared and paid annually. Each Fund distributes net realized capital gains, if any, at least annually. FEDERAL INCOME TAXES: Each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, by distributing to shareholders substantially all of its taxable income. Therefore, no Federal income or excise tax provision is required. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for market discount, losses deferred due to wash sales and excise tax regulations. Income and capital gain distribution requirements are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatment for organizational expenses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital paid-in. Undistributed net investment income and accumulated net realized gain (loss) may include temporary book and tax basis differences which will reverse in a subsequent period. ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates. 32 36 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) NOTE 3 -- AGREEMENTS AND TRANSACTIONS WITH AFFILIATES The Trust has an Investment Management Agreement with GMG/Seneca Capital Management LLC ("GMG/Seneca"), under which GMG/Seneca manages the investments of each Fund. For its services, GMG/Seneca receives a fee from each Fund at an annual percentage of the average daily net assets of each Fund. Such investment management fees are 0.70%, 0.80%, 0.50%, and 0.85% for the Growth Fund, Mid-Cap "EDGE"(SM) Fund, Bond Fund, and Real Estate Securities Fund, respectively. The Trust has a Distribution and Services Agreement (the "Agreement") with Genesis Merchant Group Securities LLC ("GMG Securities"), and Seneca Distributors LLC ("Seneca Distributors"), affiliates of GMG/Seneca, under which GMG Securities and Seneca Distributors serve as the distributors and principal underwriters of each Fund's shares. Pursuant to the Agreement, GMG Securities and Seneca Distributors receive an aggregate fee from each Fund at an annual rate of 0.25% of the average daily net assets attributable to the Administrative Shares of each Fund. The Trust has an Administrative Services Agreement with GMG/Seneca pursuant to which GMG/Seneca is responsible for the day-to-day administrative functions of the Trust. For these services, GMG/Seneca receives a fee from each Fund at an annual rate of 0.08% of the first $125 million, 0.06% of the next $125 million, and 0.04% thereafter, subject to certain minimums which GMG/Seneca has agreed to waive through March 31, 1997. GMG/Seneca has entered into an agreement with State Street Bank & Trust Company ("State Street") to provide most of the administrative functions for the Trust. GMG/Seneca had agreed to voluntarily waive its Management and Administrative fees and reimburse other operating expenses of each Fund (other than certain extraordinary or non-recurring expenses) until the earlier of March 31, 1997, or such time as the Trust's aggregate assets exceeded $60 million, to the extent necessary to prevent the 33 37 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) expenses for each Fund and class from exceeding the following percentages of average daily net assets:
ADMINISTRATIVE INSTITUTIONAL FUND CLASS CLASS ----------------------------------- -------------- ------------- Seneca Growth Fund................. 1.50% 0.85% Seneca Mid-Cap "EDGE"(SM) Fund..... 1.60 0.95 Seneca Bond Fund................... 1.30 0.65 Seneca Real Estate Securities Fund............................. 1.70 1.05
These percentages were in effect from October 1, 1996 through January 31, 1997 at which time the aggregate assets of the Trust exceeded $60 million. From February 1, 1997 to March 31, 1997, GMG/Seneca voluntarily waived its Management and Administrative fees and reimbursed other operating expenses of each Fund to the extent necessary to prevent the expenses for each Fund and class from exceeding the following percentages of average daily net assets:
ADMINISTRATIVE INSTITUTIONAL FUND CLASS CLASS ----------------------------------- -------------- ------------- Seneca Growth Fund................. 2.55% 1.95% Seneca Mid-Cap "EDGE"(SM) Fund..... 2.70 2.10 Seneca Bond Fund................... -- 1.85 Seneca Real Estate Securities Fund............................. 3.05 2.35
For the Six Months ended March 31, 1997, GMG/Seneca waived and reimbursed expenses as follows:
MANAGEMENT FEES ADMINISTRATIVE EXPENSES WAIVED FEES WAIVE REIMBURSED TOTAL ---------- -------------- ---------- -------- Seneca Growth Fund.... $ -- $ -- $ 75,835 $ 75,835 Seneca Mid-Cap "EDGE"(SM)Fund...... -- -- 109,069 109,069 Seneca Bond Fund...... 8,081 8,082 90,236 106,399 Seneca Real Estate Securities Fund..... -- -- 70,123 70,123
34 38 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) Each Trustee of the Trust who is not an interested person receives a fee of $2,500 for each regular, quarterly meeting attended and is reimbursed for expenses incurred in connection with such attendance. NOTE 4 -- INVESTMENT TRANSACTIONS Purchases and proceeds from sales and maturities of investments, excluding short term securities, for the Trust, for the six months ended March 31, 1997 were as follows:
NON- NON- GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT PURCHASES PURCHASES SALES SALES ----------- ---------- ----------- ---------- Seneca Growth Fund............... $27,294,602 $ -- $12,914,121 $ -- Seneca Mid-Cap "EDGE"(SM) Fund.... 14,305,804 -- 10,385,569 -- Seneca Bond Fund..... 5,103,693 903,238 2,952,400 499,998 Seneca Real Estate Securities Fund.... 24,824,038 -- 5,953,827 953,148
NOTE 5 -- ORGANIZATION COSTS The Trust bears all costs in connection with its organization. The organization costs are amortized on a straight-line basis over a period of sixty months from the commencement of investment operations. The costs associated with state registration of shares will be amortized on a straight-line basis over a period of twelve months. If any of the initial shares are redeemed before the end of the amortization period, the proceeds of the redemption will be reduced by the pro rata share of unamortized organization and state registration costs. 35 39 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) NOTE 6 -- CAPITAL STOCK TRANSACTIONS Capital stock transactions for the period from commencement of investment operations through March 31, 1997 are as follows: GROWTH FUND (1)
SIX MONTHS ENDED YEAR ENDED MARCH 31, 1997 SEPTEMBER 30, 1996 ----------------------- --------------------- SHARES AMOUNT SHARES AMOUNT --------- ----------- ------- ----------- INSTITUTIONAL SHARES Shares sold............ 998,065 $13,770,510 944,161 $11,381,366 Shares issued upon reinvestment of dividends............ 83,095 1,095,100 -- -- Shares redeemed........ (28,865) (396,824) (5,306) (70,645) --------- ----------- ------- ----------- Net increase........... 1,052,295 $14,468,786 938,855 $11,310,621 ========= =========== ======= ===========
SIX MONTHS ENDED YEAR ENDED MARCH 31, 1997 SEPTEMBER 30, 1996 ----------------------- --------------------- SHARES AMOUNT SHARES AMOUNT --------- ----------- ------- ----------- ADMINISTRATIVE SHARES Shares sold............ 313,127 $ 4,279,057 55,186 $ 721,427 Shares issued upon reinvestment of dividends............ 1,364 17,844 -- -- Shares redeemed........ (36,876) (509,891) (22,214) (288,331) --------- ----------- ------- ----------- Net increase........... 277,615 $ 3,787,010 32,972 $ 433,096 ========= =========== ======= ===========
- --------------- (1) Fund commenced investment operations on March 8, 1996. 36 40 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) NOTE 6 -- CAPITAL STOCK TRANSACTIONS (CONTINUED) MID-CAP "EDGE"(SM) FUND (1)
SIX MONTHS ENDED YEAR ENDED SEPTEMBER MARCH 31, 1997 30, 1996 ---------------------- -------------------- SHARES AMOUNT SHARES AMOUNT -------- ----------- ------- ---------- INSTITUTIONAL SHARES Shares sold............. 274,410 $ 3,787,647 509,221 $6,613,122 Shares issued upon reinvestment of dividends............. 7,880 109,784 -- -- Shares redeemed......... (116,432) (1,590,930) (14,376) (188,718) -------- ----------- ------- ---------- Net increase............ 165,858 $ 2,306,501 494,845 $6,424,404 ======== =========== ======= ==========
SIX MONTHS ENDED YEAR ENDED SEPTEMBER MARCH 31, 1997 30, 1996 ---------------------- -------------------- SHARES AMOUNT SHARES AMOUNT -------- ----------- ------- ---------- ADMINISTRATIVE SHARES Shares sold............. 279,608 $ 3,872,343 104,231 $1,422,572 Shares issued upon reinvestment of dividends............. 851 11,877 -- -- Shares redeemed......... (177,204) (2,442,264) (14,725) (188,631) -------- ----------- ------- ---------- Net increase............ 103,255 $ 1,441,956 89,506 $1,233,941 ======== =========== ======= ==========
- --------------- (1) Fund commenced investment operations on March 8, 1996. 37 41 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) NOTE 6 -- CAPITAL STOCK TRANSACTIONS (CONTINUED) BOND FUND (2)
SIX MONTHS ENDED YEAR ENDED SEPTEMBER MARCH 31, 1997 30, 1996 -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT ------- ---------- ------- ---------- INSTITUTIONAL SHARES Shares sold............... 283,688 $2,888,961 385,776 $3,831,086 Shares merged (4)......... 23,704 250,425 -- -- Shares issued upon reinvestment of dividends............... 23,453 237,759 8,635 85,975 Shares redeemed........... (18,245) (190,184) (6,454) (64,905) ------- ---------- ------- ---------- Net increase.............. 312,600 $3,186,961 387,957 $3,852,156 ======= ========== ======= ==========
PERIOD ENDED YEAR ENDED SEPTEMBER DECEMBER 26, 1996 30, 1996 -------------------- -------------------- SHARES AMOUNT SHARES AMOUNT ------- ---------- ------- ---------- ADMINISTRATIVE SHARES Shares sold............... 7,990 $ 82,034 18,065 $ 179,966 Shares issued upon reinvestment of dividends............... 140 1,437 104 1,031 Shares merged (4)......... (24,954) (250,425) -- -- Shares redeemed........... (2,595) (26,543) -- -- ------- ---------- ------- ---------- Net increase/(decrease)... (19,419) $ (193,497) 18,169 $ 180,997 ======= ========== ======= ==========
- --------------- (2) Fund commenced investment operations on March 7, 1996. (4) As of December 26, 1996, the Bond Fund Administration Shares merged with Bond Fund Institutional Shares in a tax free transaction. 38 42 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) NOTE 6 -- CAPITAL STOCK TRANSACTIONS (CONTINUED) REAL ESTATE SECURITIES FUND (3)
SIX MONTHS ENDED YEAR ENDED SEPTEMBER MARCH 31, 1997 30, 1996 ------------------------ -------------------- SHARES AMOUNT SHARES AMOUNT --------- ------------ ------- ---------- INSTITUTIONAL SHARES Shares sold............ 2,128,334 $ 26,301,415 94,875 $1,001,801 Shares issued upon reinvestment of dividends............ 16,751 212,830 583 6,370 Shares redeemed........ (784,566) (10,011,974) -- -- --------- ----------- ------- ---------- Net increase........... 1,360,519 $ 16,502,271 95,458 $1,008,171 ========= =========== ======= ==========
SIX MONTHS ENDED YEAR ENDED SEPTEMBER MARCH 31, 1997 30, 1996 ----------------------- -------------------- SHARES AMOUNT SHARES AMOUNT --------- ----------- ------- ---------- ADMINISTRATIVE SHARES Shares sold............. 178,852 $ 2,258,992 18,779 $ 200,099 Shares issued upon reinvestment of dividends............. 1,033 13,157 56 599 Shares redeemed......... (4,709) (61,149) -- -- --------- ----------- ------- ---------- Net increase............ 175,176 $ 2,211,000 18,835 $ 200,698 ========= =========== ======= ==========
- --------------- (3) Fund commenced investment operations on March 12, 1996. 39 43 SENECA FUNDS NOTES TO FINANCIAL STATEMENTS MARCH 31, 1997 (CONTINUED) (UNAUDITED) NOTE 7 -- SHARES OF BENEFICIAL INTEREST At March 31, 1997, certain shareholders were record owners of more than 10% of total outstanding shares of the following Funds:
PERCENTAGE NUMBER OF OF NAME OF PORTFOLIO SHAREHOLDERS SHARES OWNED - ---------------------------------------- ------------- ------------ Growth Fund............................. -- -- Mid-Cap "EDGE"(SM) Fund................. 1 24% Bond Fund............................... 2 23% Real Estate Securities Fund............. 2 34%
40 44 (THIS PAGE INTENTIONALLY LEFT BLANK) 45 (THIS PAGE INTENTIONALLY LEFT BLANK) 46 DIRECTORY OF FUNDS' SERVICE PROVIDERS ADMINISTRATOR: State Street Bank & Trust Company P.O. 9110 Boston, MA 02209-9110 CUSTODIAN & TRANSFER AGENT: Investors Fiduciary Trust Company 811 Main Street Kansas City, MO 64105-2005 AUDITOR: Deloitte & Touche LLP 50 Fremont Street San Francisco, CA 94105-2230 COUNSEL: Howard Rice, Nemernvski, Canady, Falk & Rabkin Three Embarcadero Center, 6th Floor San Francisco, CA 94111-4065 DISTRIBUTOR: Seneca Distributors LLC Genesis Merchant Group Securities LLC 909 Montgomery Street, Suite 600 San Francisco, CA 94133-4625 INVESTMENT ADVISOR: GMG/Seneca Capital Management LLC 909 Montgomery Street, Suite 500 San Francisco, CA 94133-4625 47 [SENECA FUNDS LOGO] P.O. Box 419565 Kansas City, MO 64141-6565 (800) 990-9331 http://www.senecafunds.com -----END PRIVACY-ENHANCED MESSAGE-----