Attached on the following pages is a copy of the registrant’s semi-annual report as of October 31, 2019 transmitted to stockholders.
P.O. Box 634, New City, N.Y. 10956
(212) 239-0515
SEMI-ANNUAL REPORT
Dear Shareholder:
This semi-annual report of Tridan Corp. covers the six-month period from May 1, 2019 to October 31, 2019. As part of this report, we enclose the unaudited financial report for that six-month period and for the corresponding period in 2018.
A schedule of the company’s portfolio holdings at October 31, 2019, consisting entirely of municipal obligations, is included in the financial report. The company invests exclusively in non-voting securities. The company files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The company’s Forms N-Q are available on the Commission’s website at http://www.sec.gov. They may be reviewed and copied at the Commission’s Public Reference Room in Washington D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
The net asset value per share at October 31, 2019 was $12.35, compared with $11.77 at October 31, 2018. Net investment income per share was $0.08 for the six-month period ended October 31, 2019, compared with $0.09 for the six-month period ended October 31, 2018.
At the company’s last annual meeting on July 16, 2019, the reappointment of Mazars USA LLP as the company’s auditors for the fiscal year ending April 30, 2020 was ratified by the shareholders as follows:
Shares Voted For | | | 2,949,003.9987 | |
Shares Voted Against | | | 305.4345 | |
Shares Abstaining | | | 10.0000 | |
Tridan Corp.
December 17, 2019
Page – 2 –
Also at the last annual meeting, the incumbent directors, all of whom are named below, were all reelected to serve as directors until the next annual meeting of shareholders, or until their successors are elected and have qualified.
| | | Shares Voted For | | | Shares Withheld | |
| | | | | | | |
| Peter Goodman | | | 2,949,045.2042 | | | | 274.2290 | |
| Mark Goodman | | | 2,949,045.2042 | | | | 274.2290 | |
| Paul Kramer | | | 2,948,739.7697 | | | | 579.6635 | |
| Russell J. Stoever | | | 2,948,739.7697 | | | | 579.6635 | |
| Joan G. Rall | | | 2,948,739.7697 | | | | 579.6635 | |
During the six-month period ended October 31, 2019, no director or officer received any compensation from the company except for fees of $6,000 paid to each director, plus an additional $2,500 to Paul Kramer as chairman of the audit committee. All executive officers of the company as a group (two persons) received compensation (comprised solely of said directors’ fees) aggregating $12,000 during said period (which excludes professional fees paid to the law firm of the company’s Secretary, Robert Birnbaum).
At its meeting on June 13, 2019, the Board of Directors unanimously approved the renewal of the company’s investment advisory agreement with J.P. Morgan Investment Management Inc. (“Morgan”) for the period July 1, 2019 to June 30, 2020. The board considered a variety of material factors and conclusions with respect thereto that formed the basis for the board’s approval, as discussed below.
Throughout the year, the directors received and analyzed a substantial quantity of comprehensive information and written materials, including ongoing analysis of Tridan’s existing portfolio and Morgan’s recommendations in light of its forecasts for the economy, employment trends, business conditions, federal rate moves, interest trends including comparisons between tax-exempt and taxable bonds, appropriate maturities, quality, yields, diversification, etc. The directors subject Morgan’s portfolio management to scrutiny at each board meeting, including examination of transactions completed since the prior meeting and an overview of the entire portfolio. Written materials received by the directors before and during each meeting include reports, statistics, charts, graphs, performance records, comparisons with other funds and the like. Morgan is constantly questioned at great length regarding its views, its recommendations and its performance.
Tridan Corp.
December 17, 2019
Page – 3 –
In addition to the foregoing, as requested by Tridan’s corporate counsel pursuant to Section 15(c) of the Investment Company Act of 1940, Morgan submitted its audited financial statements and detailed information regarding Morgan’s business, personnel and operations, advisory services, compensation matters, portfolio strategy, investment performance, sources of information, fee comparisons, compliance programs, and other matters of significance to the relationship between Tridan and its investment adviser, all of which material was furnished to each director. The directors reviewed all of this material and discussed the same at length, as well as their own views on Morgan’s previous performance and relationship with Tridan, with particular attention to the following areas:
Investment Performance
At each meeting, the directors receive, review and discuss with Morgan’s representatives various data showing Tridan’s portfolio characteristics, including market value, average duration, credit quality, coupon, estimated annual income and yield statistics, and breakdown information regarding duration, credit, and investment sectors. Morgan’s quarterly presentation also includes the portfolio performance over three months, year to date, one year, three years and five years, compared with the JPMorgan NY Tax Free Bond Fund, Sanford Bernstein NY Muni Fund, and Barclays 1-17 Year NY Muni Bond Index. Based on their review, the directors all agreed that Tridan’s relative investment performance has been satisfactory.
Nature, Extent and Quality of Service
The board’s analysis of the nature, extent and quality of Morgan’s services to Tridan was based on knowledge gained over time from discussions with management and at the board’s regular meetings. In addition, the directors reviewed materials contained in Morgan’s response to Tridan’s 15(c) Questionnaire pursuant to the Investment Company Act of 1940, and its Form ADV under the Investment Advisers Act of 1940 concerning, among much other information, the qualifications, education and experience of Morgan’s personnel involved in rendering those services. As Tridan’s investment adviser, Morgan manages the investment of the Company’s assets, including purchases and sales of securities, and arranges for the periodic transfer of cash required to pay expenses and make distributions to shareholders. Morgan also provides clerical and bookkeeping services, and prepares and issues periodic reports and statements. Its affiliate maintains custody of Tridan’s securities and provides access thereto upon request. The board considered its adviser’s performance of these administrative and support services, including monitoring adherence to the company’s investment policies, guidelines and restrictions, Morgan’s responsiveness to requests by Tridan’s counsel for periodic information, reports and certifications required for compliance with securities laws and regulations, and maintaining and monitoring their respective compliance programs in light of today’s extensive regulatory requirements. The board concluded that the nature, extent and quality of the services provided by Morgan to the company have been and continue to be appropriate and beneficial.
Tridan Corp.
December 17, 2019
Page – 4 –
Fees
Under its Investment Advisory Agreement with Morgan, Tridan pays an annual fee, computed and payable quarterly, equal to 0.28% (28 basis points) of its net assets under management. The agreement requires Morgan to bear all expenses incurred by it in connection with its activities under the agreement, without any reimbursement from the company. In addition, the annual charge made to Tridan for maintaining custody of the company’s securities, and for custodial-related services rendered by Morgan and its affiliates, is 0.02% (2 basis points) of the assets held in the custody account. In light of the nature, extent and quality of the services received by Tridan from Morgan and its affiliated companies, and comparing the management fees charged by Morgan to other fixed-income investment companies managed by it, all of which are many times larger than Tridan, the Board considers Morgan’s management fee to Tridan to be reasonable.
After full consideration of the above factors, the Board concluded unanimously that renewal of the investment advisory agreement with J.P. Morgan Investment Management Inc. was in the best interest of Tridan and its shareholders.
| | Sincerely, |
| | |
| | TRIDAN CORP. |
| | |
| | Peter Goodman, President |
Tridan Corp.
Financial Statements
October 31, 2019 and 2018
Tridan Corp.
Contents
October 31, 2019 and 2018
| Page(s) |
| | |
| Accountant’s Compilation Report | 1 |
| | |
| Financial Statements | |
| | |
Statements of Assets and Liabilities October 31, 2019 and 2018 | 2 |
| | |
Schedules of Investments in Municipal Obligations October 31, 2019 and 2018 | 3-7 |
| | |
Statements of Operations Six Months Ended October 31, 2019 and 2018 | 8 |
| | |
Statements of Changes in Net Assets Six Months Ended October 31, 2019 and the Year Ended April 30, 2019 | 9 |
| | |
Notes to Financial Statements | 10-16 |
Accountants’ Compilation Report
To the Shareholders and Board of Directors
Tridan Corp.
Management is responsible for the accompanying financial statements of Tridan Corp., (a corporation) which comprise the statements of assets and liabilities and schedules of investments in municipal obligations as of October 31, 2019 and 2018, and the related statements of operations for the six months ended October 31, 2019 and 2018 and the related statement of changes in net assets for the six months ended October 31, 2019, and year ended April 30, 2019, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements.
The statement of changes in net assets for the year ended April 30, 2019 was derived from financial statements that were audited by another accounting firm. Their report, dated June 21, 2019, expressed an unqualified opinion thereon, but they have not performed any auditing procedures since that date.
A statement of cash flows for the six months ended October 31, 2019 and 2018, has not been presented. Accounting principles generally accepted in the United States of America require that such a statement be presented when financial statements purport to present financial position and results of operations.
We are not independent with respect to Tridan Corp.
PKF O’CONNOR DAVIES, LLP
300 Tice Boulevard, Suite 315, Woodcliff Lake, NJ 07677 I Tel: 201.712.9800 I Fax: 201.712.0988 I www.pkfod.com
PKF O’Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
TRIDAN CORP.
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2019 AND 2018
| | | 2019 | | | 2018 | |
| Assets | | | | | | |
Investments in municipal obligations, at fair value (original cost - $36,993,110 and $37,976,893, respectively) (amortized cost - $34,704,018 and $35,682,556 respectively) | | $ | 36,320,795 | | | $ | 35,524,157 | |
| Cash and cash equivalents | | | 1,046,609 | | | | 34,453 | |
| Prepaid expenses and other current assets | | | 2,576 | | | | 2,576 | |
| Accrued interest receivable | | | 448,608 | | | | 504,408 | |
| | | | | | | | | |
| Total assets | | $ | 37,818,588 | | | $ | 36,065,594 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Accrued investment advisory fees | | $ | 38,730 | | | $ | 38,374 | |
| Accrued fees - affiliate | | | 19,984 | | | | 19,806 | |
| Accrued other | | | 12,565 | | | | 12,980 | |
| Common stock redemption payable | | | 4,182 | | | | 10,482 | |
| | | | | | | | | |
| Total liabilities | | | 75,461 | | | | 81,642 | |
| | | | | | | | | |
| Net assets | | $ | 37,743,127 | | | $ | 35,983,952 | |
| Analysis of net assets | | | | | | | | |
| Common stock | | $ | 63,982 | | | $ | 63,982 | |
| Paid-in capital | | | 37,816,314 | | | | 37,816,314 | |
| Treasury stock | | | (1,729,650 | ) | | | (1,712,479 | ) |
| Distributable earnings: | | | | | | | | |
| Over distributed net investment income | | | (24,292 | ) | | | (22,011 | ) |
| Undistributed capital losses | | | - | | | | (3,451 | ) |
| Unrealized appreciation (depreciation) of investments, net | | | 1,616,773 | | | | (158,403 | ) |
| | | | | | | | | |
Net assets [equivalent to $12.35 and $11.77 per share, respectively, based on 3,055,037.3667 shares and 3,056,439.9257 shares of common stock outstanding, respectively] | | $ | 37,743,127 | | | $ | 35,983,952 | |
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
OCTOBER 31, 2019 AND 2018
| | | 2019
| | | 2018
| |
| | | | | | Amortized Cost | | | | | | | | | Amortized Cost | | | | |
| New York Municipal Bonds | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
N.Y.S. Dormitory Authority Revs Non St Supported Debt St Johns Univ - Insd 5.25% due July 1, 2021 | | $ | 1,000,000 | | | $ | 1,014,156 | | | $ | 1,067,820 | | | $ | 1,000,000 | | | $ | 1,022,490 | | | $ | 1,075,500 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
State of NY Dormitory Auth Personal Inc Tax Rev Ref Educ. 5.50 % due March 15, 2025 | | | 500,000 | | | | 524,966 | | | | 610,020 | | | | 500,000 | | | | 529,608 | | | | 584,915 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Mt Transportation Auth Ny Revenue 5.0% due November 15, 2027 | | | 1,250,000 | | | | 1,489,462 | | | | 1,565,275 | | | | 1,250,000 | | | | 1,519,212 | | | | 1,432,725 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NY St Urban Dev Corp Rev Ref Pers Income Tax 5.0% due March 15, 2031 | | | 750,000 | | | | 867,539 | | | | 919,155 | | | | 750,000 | | | | 877,872 | | | | 849,585 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NYS Dorm Auth Revs (Par Call October 01, 2026) 5.0% due October 01, 2033 | | | 1,000,000 | | | | 1,125,740 | | | | 1,211,230 | | | | 1,000,000 | | | | 1,143,902 | | | | 1,119,740 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NYS Dorm Auth Revs 5.0% due July 01, 2029 | | | - | | | | - | | | | - | | | | 1,250,000 | | | | 1,454,945 | | | | 1,410,350 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Triboro NY Bridge & Tunnel 5.0% due November 15, 2035 | | | 1,015,000 | | | | 1,162,904 | | | | 1,238,148 | | | | 1,015,000 | | | | 1,172,116 | | | | 1,137,632 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Erie County NY Fiscal Stability Sales Tax 5.00% due June 15, 2024 | | | 165,000 | | | | 189,923 | | | | 194,147 | | | | 165,000 | | | | 195,313 | | | | 188,168 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
City of New York NY Transitional Finance Auth Rev Sub Future Tax Secured (Par Call November 1, 2019 @100): 5.00% due November 1, 2020 | | | 130,000 | | | | 130,723 | | | | 130,000 | | | | 500,000 | | | | 508,928 | | | | 514,901 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
5.00% due November 1, 2021 | | | - | | | | - | | | | - | | | | 1,000,000 | | | | 1,014,379 | | | | 1,029,070 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NY City Transitional Financial Authority Rev Future Tax (Par Call November 1, 2022 @100) 5.00% due November 1, 2026 | | | 550,000 | | | | 573,517 | | | | 610,676 | | | | 550,000 | | | | 581,335 | | | | 601,117 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Brookhaven NY Limited Tax 4.0% due March 15, 2023 | | | 1,000,000 | | | | 1,094,764 | | | | 1,099,390 | | | | 1,000,000 | | | | 1,122,636 | | | | 1,073,280 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Erie Count Indvl Dev Agency 5.0% due May 1, 2025 | | | 750,000 | | | | 892,415 | | | | 904,545 | | | | 750,000 | | | | 915,830 | | | | 863,745 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NYC NY Cultural Res-Museum of Modern Art 4.0% due February 1, 2023 | | | 400,000 | | | | 436,157 | | | | 437,824 | | | | 400,000 | | | | 447,247 | | | | 428,864 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Schnectady CNTY NY Various Purposes LTD Tax 5.0% due December 15, 2020 | | | - | | | | - | | | | - | | | | 800,000 | | | | 860,210 | | | | 848,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Schnectady CNTY NY Various Purposes LTD Tax 5.0% due December 15, 2022 | | | 300,000 | | | | 329,868 | | | | 337,047 | | | | 300,000 | | | | 339,423 | | | | 332,403 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Harrison NY REF Public Impt LTD Tax 5.0% due December 15, 2023 | | | 100,000 | | | | 117,582 | | | | 116,249 | | | | 100,000 | | | | 120,923 | | | | 112,761 | |
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
OCTOBER 31, 2019 AND 2018
| | | 2019 | | | 2018 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Saratoga County NY Ref LTD Tax 5.0% due July 15, 2023 | | $ | 100,000 | | | $ | 117,282 | | | $ | 114,389 | | | $ | 100,000 | | | $ | 121,039 | | | $ | 112,346 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
SNT Lawrence CNTY NY REF Limited Tax (Par Call May 15, 2025) 5.0% due May 15, 2026 | | | 105,000 | | | | 118,001 | | | | 124,598 | | | | 105,000 | | | | 120,290 | | | | 118,776 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NYC NY TR Cultural Res- Museum of Modern Art 4.0% due April 01, 2026 | | | 500,000 | | | | 567,742 | | | | 587,975 | | | | 500,000 | | | | 578,673 | | | | 545,505 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Middele CTRY NY central School District- AT Centereach 5.0% due August 01, 2020 | | | 150,000 | | | | 154,271 | | | | 154,544 | | | | 150,000 | | | | 159,940 | | | | 157,744 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Laurens NY Central School District (Par Call June 15, 2025) 4.0% due June 15, 2028 | | | 305,000 | | | | 326,429 | | | | 342,143 | | | | 305,000 | | | | 330,237 | | | | 326,585 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Nassau County Gen Impt Unltd Tax (Par Call October 1, 2020 @100) 4.00% due October 1, 2022 | | | 550,000 | | | | 552,527 | | | | 563,464 | | | | 550,000 | | | | 556,590 | | | | 565,417 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Brookhaven NY REF Unlimited Tax 5.00% due March 15, 2025 | | | 500,000 | | | | 580,384 | | | | 603,405 | | | | 500,000 | | | | 595,338 | | | | 576,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NY ST Environmental FACS 5.00% due June 15, 2026 | | | 1,300,000 | | | | 1,499,461 | | | | 1,608,581 | | | | 1,300,000 | | | | 1,529,545 | | | | 1,517,295 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Brookhaven New York Unlimited Tax 5.00% due November 15, 2019 | | | - | | | | - | | | | - | | | | 450,000 | | | | 460,446 | | | | 464,337 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
State of NY Dormitory Auth State Pers. Inc. Tax 5.5% due March 15, 2026
| | | 200,000 | | | | 232,047 | | | | 251,024 | | | | 200,000 | | | | 237,072 | | | | 237,042 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| State of NY Dormitory Auth Lease Rev (Par Call August 15, 2020 @100) 5.00 % due August 15, 2023 | | | 420,000 | | | | 420,048 | | | | 432,990 | | | | 420,000 | | | | 421,028 | | | | 441,004 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
New York, New York Unlimited Tax (Par Call August 1, 2020 @100) 5.00 % due August 1, 2023 | | | 510,000 | | | | 515,573 | | | | 524,759 | | | | 510,000 | | | | 522,942 | | | | 534,327 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Port Authority of NY and NJ 5.375 % due March 1, 2028 | | | 150,000 | | | | 152,612 | | | | 178,744 | | | | 150,000 | | | | 152,925 | | | | 171,403 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Util. Debt Securitization (Par Call June 15, 2024 @100) 5.00% due December 15, 2026 | | | 500,000 | | | | 561,025 | | | | 592,865 | | | | 500,000 | | | | 574,070 | | | | 567,775 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Erie County NY Fiscal Stability Sales Tax (Par Call June 15, 2027 @100) 5.00% due June 15, 2029 | | | 1,000,000 | | | | 1,184,552 | | | | 1,260,820 | | | | 1,000,000 | | | | 1,208,756 | | | | 1,159,110 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Greece NY Central School District Unlimited Tax (Par Call December 15, 2022 @100) 5.0% due December 15, 2023 | | | 500,000 | | | | 532,160 | | | | 557,335 | | | | 500,000 | | | | 541,802 | | | | 550,895 | |
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
OCTOBER 31, 2019 AND 2018
| | | 2019
| | | 2018
| |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Rensselaer Cnty, NY Limited Tax 5.00% due September 1, 2024 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Mattituck-Cutchogue NY Central School District Unlimited Tax (Par Call July 15, 2025 @100) 5.0% Unlimited tax due July 15, 2026 | | | | | | | | | | | | | | | | | | | 325,082 | | | | 319,600 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Mattituck-Cutchogue NY (Par Call July 15, 2025 @100) 5.0% Unlimited tax due July 15, 2027 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Putnam County NY Limited Tax (Par Call January 15, 2026 @100) 5.0% due January 15, 2027 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Halfmoon NY Pub Imp Limited Tax (Par Call June 15, 2025 @100) 5.0% due June 15, 2027 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Gates Chili NY Central School Unlimited Tax (Par Call June 15, 2025 @100) 5.0% due June 15, 2027 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Western Nassau Cty Water Auth (Par Call April 1, 2025 @100) 5.0% due April 1, 2028 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Starpoint NY Central School District Ref Unlimited Tax 5.0% due June 15, 2020 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Wantagh New York UN Free School 5.00% due September 1, 2021 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Central Islip New York Union Free School School District Ref Unlimited Tax 5.00% due July 15, 2022 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Rockville Center NY Limited Tax 4.0% due June 15, 2022 | | | 200,000 | | | | 213,258 | | | | 216,128 | | | | 200,000 | | | | 216,804 | | | | 212,026 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Brentwood New York UN Free School 5.00% due January 15, 2023 | | | 430,000 | | | | 449,598 | | | | 482,886 | | | | 430,000 | | | | 456,398 | | | | 476,788 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Connetquot New York Central School District Unlimited Tax 5.0% due January 15, 2024 | | | 400,000 | | | | 422,452 | | | | 463,736 | | | | 400,000 | | | | 427,780 | | | | 450,568 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Syosset New York Central School District Unlimited Tax 5.0% due December 15, 2022 | | | 735,000 | | | | 775,518 | | | | 820,999 | | | | 735,000 | | | | 786,261 | | | | 808,108 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Syosset New York Central School District Unlimited Tax 5.0% due December 15, 2022 | | | 125,000 | | | | 131,188 | | | | 140,436 | | | | 125,000 | | | | 133,772 | | | | 138,605 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Onondaga County NY Ref Unlimited Tax (Par Call March 15, 2024 @100) 5.0% due March 15, 2025 | | | 285,000 | | | | 310,398 | | | | 333,062 | | | | 285,000 | | | | 316,199 | | | | 322,267 | |
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
OCTOBER 31, 2019 AND 2018
| | | 2019
| | | 2018
| |
| | | | | | Amortized Cost | | | | | | | | | Amortized Cost | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| North Babylon NY Un Free School Dist Ref Unlimited Tax (Par Call August 1, 2022 @100) 5.0% due August 1, 2023 | | $ | 250,000 | | | $ | 265,912 | | | $ | 276,788 | | | $ | 250,000 | | | $ | 271,685 | | | $ | 273,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Battery Park City NY Authority SR-Ser A (Par Call November 1, 2023 @100) 5.0% due November 1, 2029 | | | 140,000 | | | | 147,071 | | | | 160,685 | | | | 140,000 | | | | 149,296 | | | | 156,835 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Buffalo & Ft. Erie NY Pub Bridge Auth Toll Bridge Sys Rev 5.0% due January 1, 2025 | | | 410,000 | | | | 450,048 | | | | 482,943 | | | | 410,000 | | | | 457,745 | | | | 463,698 | |
| | | | | | | | | | | | | | | | | | | | | | | �� | | |
| Bayport Blue Point NY Un Free School Dist Ref Unlimited Tax 5.0% due September 15, 2024 | | | 250,000 | | | | 278,398 | | | | 295,750 | | | | 250,000 | | | | 284,215 | | | | 284,355 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Saratoga Springs NY Ref Public Imports-Unlimited Tax (Par Call February 15, 2023 @100) 5.0% due February 15, 2025 | | | 225,000 | | | | 245,209 | | | | 252,441 | | | | 225,000 | | | | 250,528 | | | | 249,071 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Build NYC Resource Corp.NY Rev United Jewish Appeal (Par Call July 1, 2024 @100) 5.0% due July 1, 2025 | | | 320,000 | | | | 354,102 | | | | 374,048 | | | | 320,000 | | | | 361,026 | | | | 361,094 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Tompkins County NY Public Impt Ser B Limited Tax (Par Call December 15, 2024 @100) 5.0% due December 15, 2027 | | | 500,000 | | | | 561,378 | | | | 595,340 | | | | 500,000 | | | | 573,338 | | | | 566,565 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Util Debt Securitization Auth NY Restructuring Ser TE (Par Call December 15, 2023 @100) 5.0% due December 15, 2028 | | | 500,000 | | | | 523,073 | | | | 576,000 | | | | 500,000 | | | | 529,123 | | | | 557,160 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Rhinebeck New York Central School District Unlimited Tax (Par Call June 15, 2023 @100) 4.0% due June 15, 2025 | | | 535,000 | | | | 558,488 | | | | 585,547 | | | | 535,000 | | | | 564,954 | | | | 561,440 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Riverhead NY Limited Tax 4.0% due June 1, 2021 | | | 1,005,000 | | | | 1,029,553 | | | | 1,050,054 | | | | 1,005,000 | | | | 1,044,738 | | | | 1,050,386 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Bethlehem, NY Central School District Unlimited Tax 4.00% due January 15, 2021 | | | 500,000 | | | | 509,667 | | | | 517,255 | | | | 500,000 | | | | 517,633 | | | | 519,235 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Plainview Old Bethpage New York Central School District Ref Unlimited Tax 5.00% due December 15, 2020 | | | 250,000 | | | | 254,177 | | | | 260,932 | | | | 250,000 | | | | 257,877 | | | | 265,160 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Queensbury New York Union Free School 4.00% due December 15, 2018 | | | - | | | | - | | | | - | | | | 225,000 | | | | 225,524 | | | | 225,573 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| N.Y.S. Dormitory Authority Revs City University Sys Ref Cons 5th Gen 5.5% due July 1, 2019 | | | - | | | | - | | | | - | | | | 1,000,000 | | | | 1,005,325 | | | | 1,024,080 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Sachem Central School District NY Holbrook Ref Unlimited Tax 5.25% due October 15, 2019 | | | - | | | | - | | | | - | | | | 500,000 | | | | 504,597 | | | | 515,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| New York, New York Unlimited Tax (Par Call August 1, 2019 @100) 5.00 % due August 1, 2026 | | | 350,000 | | | | 349,884 | | | | 351,012 | | | | 350,000 | | | | 350,593 | | | | 357,791 | |
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
OCTOBER 31, 2019 AND 2018
| | | 2019
| | | 2018
| |
| | | | | | Amortized Cost | | | | | | | | | Amortized Cost | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| City of New York Municipal Fin Auth Wtr & Swr Rev (Par Call June 15, 2019 @100) 5.00% due June 15, 2027 | | $ | - | | | $ | - | | | $ | - | | | $ | 500,000 | | | $ | 501,892 | | | $ | 509,023 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Longwood NY Central School District Suffolk 5.00% due March 15, 2019 | | | - | | | | - | | | | - | | | | 185,000 | | | | 187,749 | | | | 187,157 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NYS Dorm Auth Persnl Inc Tax 5.0% due August 15, 2026 | | | 500,000 | | | | 605,851 | | | | 601,220 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Met Transportation Auth NY Revenue 5.0% due November 15, 2027 | | | 300,000 | | | | 346,061 | | | | 360,600 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NY ST Dorm Auth Revenues Non St 5.0% due October 1, 2029 | | | 1,090,000 | | | | 1,339,570 | | | | 1,370,664 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NY City Transitional Fin Auth Rev Future (Par Call February 1, 2026 @100) 5.00 % due February 1, 2031 | | | 1,000,000 | | | | 1,162,204 | | | | 1,197,870 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Long Island NY Power Auth Elec 5.0% due September 1, 2034 | | | 1,000,000 | | | | 1,217,971 | | | | 1,241,414 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
NYS dorm Sales Tax 5.0% due March 15, 2035 | | | 1,250,000 | | | | 1,444,009 | | | | 1,542,675 | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 31,260,000 | | | $ | 34,704,018 | | | $ | 36,320,795 | | | $ | 32,400,000 | | | $ | 35,682,556 | | | $ | 35,524,157 | |
TRIDAN CORP.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 2019 AND 2018
| Investment income | | 2019 | | | 2018 | |
| | | | | | | | | |
| Interest | | $ | 749,266 | | | $ | 779,058 | |
| Amortization of bond premium and discount - net | | | (297,909 | ) | | | (303,270 | ) |
| | | | | | | | | |
| Total investment income | | | 451,357 | | | | 475,788 | |
| | | | | | | | | |
| Expenses | | | | | | | | |
| | | | | | | | | |
| Investment advisory fees | | | 55,809 | | | | 54,554 | |
| Professional fees | | | 70,260 | | | | 70,295 | |
| Director’s fees | | | 32,500 | | | | 38,500 | |
| Administrative and accounting expenses | | | 36,000 | | | | 36,000 | |
| Insurance and other expenses | | | 4,221 | | | | 7,461 | |
| | | | | | | | | |
| Total expenses | | | 198,790 | | | | 206,810 | |
| | | | | | | | | |
| Net investment income | | | 252,567 | | | | 268,978 | |
| | | | | | | | | |
| Realized and unrealized gain (loss) on investments | | | | | | | | |
| Net realized gain on investments | | | 8,583 | | | | 12,760 | |
| Net unrealized appreciation (depreciation) on investments | | | 571,362 | | | | (379,523 | ) |
| | | | | | | | | |
| Net realized and unrealized income (loss) on investments | | | 579,945 | | | | (366,763 | ) |
| | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 832,512 | | | $ | (97,785 | ) |
TRIDAN CORP.
STATEMENTS OF CHANGES IN NET ASSETS
| | | Six Months Ended October 31, 2019 | | | Year Ended April 30, 2019 | |
| Increase in net assets resulting from operations | | | | | | |
| Net investment income | | $ | 252,567 | | | $ | 571,090 | |
| | | | | | | | | |
| Net realized gain on investments | | | 8,583 | | | | 31,067 | |
| | | | | | | | | |
| Unrealized appreciation on investments | | | 571,362 | | | | 824,290 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | | 832,512 | | | | 1,426,447 | |
| | | | | | | | | |
| Distributions to shareholders from | | | | | | | | |
| Net investment income | | | (281,884 | ) | | | (564,620 | ) |
| Capital gains | | | (23,438 | ) | | | (16,210 | ) |
| Redemptions of shares | | | | | | | | |
419.7855 shares (October 2019) and 2,296.3490 shares (April 2019), respectively | | | (5,201 | ) | | | (27,370 | ) |
| | | | | | | | | |
| Total increase | | | 521,989 | | | | 818,247 | |
| | | | | | | | | |
| Net assets | | | | | | | | |
| Beginning of period | | | 37,221,138 | | | | 36,402,891 | |
| | | | | | | | | |
| End of period | | $ | 37,743,127 | | | $ | 37,221,138 | |
Tridan Corp.
Notes to Financial Statements
October 31, 2019 and 2018
| 1. | Significant Accounting Policies |
The following is a summary of the significant accounting policies followed by Tridan Corp. (the “Company”), a closed-end, non-diversified management investment company, registered under the Investment Company Act of 1940.
Basis of Presentation
The accompanying financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). The Company is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification 946, Financial Services - Investment Companies.
Acquisition and Valuation of Investments
Investment transactions are accounted for on the date the securities are purchased/sold (trade date) and interest on securities acquired/sold is included in income from/to the settlement date. Short-term investments are stated at cost, which is equivalent to fair value.
Fair values for the Company’s investments in municipal obligations have been determined based on the bid price of the obligation. Securities for which quotations are not readily available are valued at fair value as determined by the board of directors. There were no securities valued by the board of directors, for which quotations were not readily available, as of October 31, 2019 and 2018.
Amortization of Bond Premium or Discount
In determining investment income, bond premiums or discounts are amortized over the Earliest of the Call date or Maturity date based on ASC 310-20-35-33.
Income Taxes
It is the Company’s policy to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. The Company also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no income tax provision would be required.
The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Company’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Tridan Corp.
Notes to Financial Statements
October 31, 2019 and 2018
The Company identifies its major tax jurisdictions as U.S. Federal, New York State and New York City where the Company makes significant investments. Generally, the Company’s tax returns are subject to examination by Federal, state and local authorities for a period of three years from the later of the due date of such returns or the actual date the returns were filed.
Interest income from municipal investments is exempt from Federal and state income taxes.
Distributions to Shareholders
Dividends to shareholders from net investment income, if any, are paid quarterly. Distributions of capital gains, if any, are made at least annually, and as required to comply with Federal excise tax requirements. Dividends to shareholders are determined in accordance with tax regulations and are recorded on the ex-dividend date.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with original maturities of 90 days or less to be cash equivalents.
Use of Estimates
The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Significant estimates are used in determining the fair value of investments.
Concentration of Credit Risk
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and investments. The Company maintains all of its cash on deposit in one financial institution. At October 31, 2019 and 2018, there were no cash and cash equivalents held in excess of federally insured limits. The value of the Company’s investments may be subject to possible risks involving, among other things, the continued creditworthiness of the various state and local government agencies and public financing authorities underlying its investments.
Tridan Corp.
Notes to Financial Statements
October 31, 2019 and 2018
Fair value of Financial Instruments `
The carrying amounts for accrued interest receivables and accrued liabilities reflected in the financial statements approximate fair value because of the short maturities of these items. The Company accounts for its investments in municipal obligations in accordance with the accounting guidance for investment companies (FASB ASC 946). See Note 1 “Acquisition and Valuation of Investments” for a description of the valuation methodology which is unchanged as of October 31, 2019 and 2018. FASB ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value and expands disclosures about the use of fair value measurements. The valuation techniques required by FASB ASC 820 are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions.
The levels of the fair value hierarchy are as follows:
| | Level 1 – | Unadjusted quoted prices in active markets for identical assets or liabilities that a company has the ability to access. |
| | Level 2 – | Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risks, yield curves, default rates, and similar data. |
| | Level 3 – | Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing a company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. |
The Company’s investments in municipal obligations are all considered Level 2 instruments.
The following table presents the Company’s financial assets that are measured at fair value as of October 31, 2019 and 2018:
| | Quoted Prices for Identical Instruments in Non-Active Markets (Level 2) | |
| | 2019
| | | 2018
| |
| | | | | | | |
Investments in municipal obligations | | $ | 36,320,795 | | | $ | 35,524,157 | |
Tridan Corp.
Notes to Financial Statements
October 31, 2019 and 2018
The Company utilizes quoted market prices for it securities owned, when available. Instruments classified as Level 2 are valued using industry-standard models or other valuation methodologies calibrated to observable market inputs. These models consider various assumptions regarding the security or securities with similar characteristics, such as trade data, bid price or spread, two sided markets, quotes, benchmark curves, and market data feeds, as well as other measurements.
| 2. | Cash and Cash Equivalents |
Cash and cash equivalents consist of the following:
| | | 2019 | | | 2018 | |
| | | | | | | |
| Cash and cash equivalents | | $ | 1,046,609 | | | $ | 34,453 | |
Accrued liabilities consist of the following at:
| | | 2019 | | | 2018 | |
| | | | | | | |
| Accrued investment advisory and custodian fees (a) | | $ | 38,730 | | | $ | 38,374 | |
Accrued fees - affiliate (b)
| | $ | 19,984 | | | $ | 19,806 | |
| Accrued other: | | | | | | | | |
| Accrued audit fees (c) | | $ | $12,565 | | | $ | $12,980 | |
| Accrued administrative and stock redemptions | | | 4,182 | | | | 10,482 | |
| | | $ | 16,747 | | | $ | 23,462 | |
| | (a) | The Company utilizes the services of J.P. Morgan Investment Management, Inc. as its investment advisor and J.P. Morgan Chase Bank N.A. as its custodian for its investments. The annual advisory fee is .28 of one percent and the custody fee is .02 of one percent of the net assets under management. The fee is computed and payable quarterly, based on the aggregate fair value of the net assets on the last day of each fiscal quarter. |
| (b) | For the six months ending October 31, 2019 and 2018, the Company incurred legal fees of approximately $46,000 for both periods, respectively, for professional fees paid to the law firm of which an officer of the Company is a member. |
| (c) | For the six months ending October 31, 2019 and 2018 the Company incurred audit fees of approximately $24,000 for both periods, respectively. |
Notes to Financial Statements
October 31, 2019 and 2018
| 4. | Investment Transactions |
Purchases and sales of investments in municipal obligations (excluding short-term and demand investments) amounted to approximately $3,183,000 and $2,728,000, respectively, for the six months ended October 31, 2019, and $4,668,000 and $3,682,000, respectively, for the six months ended October 31, 2018.
The U.S. Federal income tax basis (aggregate cost) of the Company’s investments, at October 31, 2019 and 2018 was approximately $34,704,000 and $35,683,000, respectively. Net unrealized appreciation (depreciation) at October 31, 2019 and 2018, for U.S. Federal income tax purposes was approximately $1,617,000 and $(158,000), respectively.
| 5. | Common Stock, Share Redemption Plan and Net Asset Values |
At October 31, 2019 and 2018, there were 6,000,000 shares of $0.02 par value common stock authorized of which 3,199,100 had been issued aggregating $63,982.
The Company has a share redemption plan applicable to 21,586 shares and 22,988 shares, respectively, of outstanding common stock, at October 31, 2019 and 2018. The plan permits eligible shareholders or their estates to have their shares redeemed upon reaching age 65 or upon death. Shares are redeemed at the net asset value per share, as of the end of the Company’s fiscal quarter in which the request for redemption is received. At October 31, 2019 and 2018, there were 114,731.7468 shares ($1,364,774) and 113,329.1878 shares ($1,347,604), respectively, which have been redeemed under this plan.
The net asset value per share is calculated by dividing the aggregate fair value of all assets less the aggregate fair value of all liabilities by the number of common shares outstanding at the end of the period.
The net asset values per share and the shares outstanding are as follows:
| | 2019
| | | 2018
| |
| | | | | | | |
| | $ | 12.35 | | | $ | 11.77 | |
| Shares outstanding at: | | | | | | | | |
| October 31, 2019 | | | 3,055,037.3667 | |
| October 31, 2018 | | | 3,056,439.9257 | |
Tridan Corp.
Notes to Financial Statements
October 31, 2019 and 2018
During the six months ended October 31, 2019 and 2018, distributions of $305,323 ($.10 per share), $305,755 ($.10 per share), respectively were declared and paid to shareholders, Distributions for the year ended April 30, 2019 amounted to $580,830 ($.19 per share). Substantially all of the distributions were exempt from Federal income taxes except for $23,439 and $16,210 of capital gain distributions during the six months ended October 31, 2019 and 2018, respectively and $16,210 for the year ended April 30, 2019.
The tax character of distributions paid during the six months ending October 31, 2019 and 2018 and for the year ending April 30, 2019 is as follows:
| | | Six Months Ended | | | | |
| Distributions paid from investment income: | | 2019 | | | 2018 | | | 2019 | |
| Tax-exempt investment income, net | | $ | 281,884 | | | $ | 289,544 | | | $ | 564,620 | |
| Capital gains | | | 23,438 | | | | 16,211 | | | | 16,210 | |
| | | $ | 305,322 | | | $ | 305,755 | | | $ | 580,830 | |
As of October 31, 2019, 2018 and April 30, 2019, the components of distributable earnings on a tax basis were as follows:
| | | Six Months Ended | | | | |
| | 2019 | | | 2018 | | | 2019 | |
Over-distributed tax-exempt investment income, net | | $ | (24,292 | ) | | $ | (22,011 | ) | | $ | 5,025 | |
| Over-Undistributed capital gains (losses) | | | - | | | | (3,451 | ) | | | 14,856 | |
| Unrealized appreciation of investments, net | | | 1,616,773 | | | | (158,403 | ) | | | 1,045,411 | |
| | | $ | 1,592,481 | | | $ | (183,065 | ) | | $ | 1,065,292 | |
Capital loss carryforwards as of October 31, 2019 and 2018 were $-0- and $3,451, respectively. The Company had no capital reclassification related to permanent book/tax differences for the six months ending October 31, 2019 and 2018 and for the year ended April 30, 2019. There were no significant differences between total GAAP basis net investment income and net realized gain, and actual distributions for the six months ended October 31, 2019 and 2018 and for the year ended April 30, 2019.
Tridan Corp.
Notes to Financial Statements
October 31, 2019 and 2018
Selected per share data and ratios are as follows:
| | | Six Months Ended October 31, | |
| | | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | |
| Per share operating performance: (For a share of common stock outstanding throughout the year): | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.18 | | | $ | 11.91 | | | $ | 12.28 | | | $ | 12.60 | | | $ | 12.52 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | .08 | | | | .09 | | | | .10 | | | | .11 | | | | .12 | |
| Net realized and unrealized gain (loss) on investments | | | .19 | | | | (.05 | ) | | | (.02 | ) | | | (.15 | ) | | | (.02 | ) |
| Total from investment operations | | | .27 | | | | (.04 | ) | | | .08 | | | | (.04 | ) | | | .10 | |
| Less distributions: | | | | | | | | | | | | | | | | | | | | |
| Dividends (from net investment income) | | | (.09 | ) | | | (.09 | ) | | | (.12 | ) | | | (.12 | ) | | | (.19 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Capital gains | | | (.01 | ) | | | (.01 | ) | | | (.00 | ) | | | (.00 | ) | | | (.00 | ) |
| Total distributions | | | (.10 | ) | | | (.10 | ) | | | (.12 | ) | | | (.12 | ) | | | (.19 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net asset value - end of year | | $ | 12.35 | | | $ | 11.77 | | | $ | 12.24 | | | $ | 12.44 | | | $ | 12.43 | |
| Per share value - end of year | | $ | 12.35 | | | $ | 11.77 | | | $ | 12.24 | | | $ | 12.44 | | | $ | 12.43 | |
| | | | | | | | | | | | | | | | | | | | | |
| *Total investment return | | | 0.05 | % | | | (0.03 | )% | | | (0.06 | )% | | | (0.04 | )% | | | (0.02 | )% |
| | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (in 000s) | | $ | 37,743 | | | $ | 35,984 | | | $ | 37,429 | | | $ | 38,051 | | | $ | 38,451 | |
| Ratio of expenses to average net assets | | | 1.08 | % | | | 1.14 | % | | | 1.09 | % | | | 1.11 | % | | | 1.09 | % |
| Ratio of net investment income to average net assets | | | 1.37 | % | | | 1.49 | % | | | 1.63 | % | | | 1.75 | % | | | 2.01 | % |
| Portfolio turnover rate | | | 8.63 | % | | | 12.90 | % | | | 5.55 | % | | | 7.05 | % | | | 1.68 | % |
| Average (simple) number of shares outstanding (in thousands) | | | 3,055 | | | | 3,059 | | | | 3,059 | | | | 3,060 | | | | 3,092 | |
* Total investment return is calculated by dividing the change in market value of a share of common stock during the year, assuming the reinvestment of dividends on the payment date, by the per share market value at the beginning of the year and has been recalculated for all prior periods presented.
Not required in this report.
Not required in this report.
Not required in this report.
Not required in this report.
Not applicable, because the registrant invests exclusively in non-voting securities.
No change in the portfolio managers identified in the registrant’s most recent annual report on Form N-CSR.
Not applicable, because the registrant has no equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934.
The registrant does not have in place procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Pursuant to the requirements of the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Pursuant to the requirements of the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
