UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04014
Meridian Fund, Inc.® |
(Exact name of registrant as specified in charter)
60 E. Sir Francis Drake Boulevard |
Suite 306 |
Larkspur, CA 94939 |
(Address of principal executive offices) (Zip code)
Gregg B. Keeling |
60 E. Sir Francis Drake Boulevard |
Suite 306 |
Larkspur, CA 94939 |
(Name and address of agent for service)
registrant’s telephone number, including area code: 415-461-8770
Date of fiscal year end: June 30
Date of reporting period: December 31, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. | Reports to Stockholders. |
The Report to Shareholders is attached herewith.
MERIDIAN FUND, INC.
January 3, 2012
To Our Shareholders:
The broader stock market indices posted strong fourth quarter results but ended 2011 relatively flat. The S&P 500 index finished essentially unchanged for the year, the NASDAQ down 1.8% and the Russell 2000, which includes smaller companies, dropped 5.5%. Concerns over Europe, U.S. growth and government debt levels were mainly offset by continued corporate earnings growth and low interest rates. The year’s best performing sectors included consumer nondurables, health care and utility stocks. Basic material, financial and industrial companies were among the worst performing groups. The yield on the ten-year Treasury bond declined significantly from 3.30% to 1.87% during 2011. This drop, in our opinion, was due to sluggish economic growth and a flight to safety by investors.
We begin 2012 with the economy growing at a modest pace, historically low interest rates and moderate inflation. GDP grew at a revised 1.8% during the third quarter and is expected to have accelerated somewhat during the quarter just ended. Manufacturing and consumer spending are growing, while construction and employment have recently improved from depressed levels. There remains, however, considerable uncertainty. The viability of the European Union in its current form is questionable and a number of the members will likely experience negative growth in 2012. The U.S. Government, it appears, will not deal with long term deficit reduction, entitlement reform, tax policy, health care or other measures to promote economic growth until 2013, if then. We believe the economy will continue to expand this year, but at a subpar pace compared to other recoveries since World War II.
Long-term investment results, history clearly shows, are improved by buying good companies or mutual funds consistently over an extended period of time. We welcome those new shareholders who joined the Meridian Funds during the quarter and appreciate the continued confidence of our existing shareholders.
We wish you a happy, healthy and prosperous New Year.
Richard F. Aster, Jr.
We are deeply saddened to announce that on February 16, 2012,
prior to the issuance of this Semi-Annual report,
Richard F. Aster, Jr. passed away.
Please see the subsequent event footnote in this report to shareholders.
Meridian Equity Income Fund® (MEIFX)
The Meridian Equity Income Fund’s net asset value per share at December 31, 2011 was $10.22. This represents an increase of 5.6% year to date. The Fund’s total return and average annual compound rate of return since inception January 31, 2005 were 32.8% and 4.2%, respectively. On December 15, 2011, the Equity Income Fund paid an income dividend of $0.21 per share. At the close of the quarter, total net assets were $32,867,976 and were invested 5.3% in cash and other assets net of liabilities and 94.7% in stocks. At the close of the quarter there were 516 shareholders in the Equity Income Fund.
Our basic strategy remains unchanged. The Fund continues to seek to invest in companies with above-average dividend yields, along with strong financial returns and that have, in our opinion, the ability to grow dividends. The severe downturn in the economy and corporate profits resulted in dividend cuts for companies which previously were considered safe. Dividends for good companies, however, have stabilized and are beginning to grow again as the economy improves. The Fund is diversified with 60 holdings representing 59 different industry groups. At the end of the December 2011 quarter, the portfolio’s average holding had a five-year average return on equity of 18.8% and an average dividend yield of 3.7%, both measures substantially higher than the average S&P 500 stock. The yield compares favorably also to the 1.9% yield on the ten-year Treasury bond. The average holding has a market capitalization of $38.8 billion, a debt to capital ratio of 39.4% and earnings per share that are projected to increase 9.05% annually during the next several years. We believe these financial characteristics will lead to positive long-term returns for the Fund.
During the quarter we purchased shares of Allstate, Emerson Electric, KLA-Tencor and Walgreen. We sold our positions in Avon, Chubb, Hubbell and VF Corp.
Kimberly-Clark is a leading manufacturer of products for the household, personal use and health care markets. Product categories include diapers, paper towels, napkins, Kleenex, surgical drapes and gowns and exam gloves among others. The company has leading brands in all its sectors and the business is recession resistant. The shares yield 3.85% with a history of dividend growth supported by strong cash flow. Earnings and dividends are expected to grow in the high single digits. The balance sheet is strong and Kimbery’s return on capital is among the highest in the industry. These characteristics, in our opinion, should result in positive investment returns for investors.
Meridian Growth Fund® (MERDX)
The Meridian Growth Fund’s net asset value per share at December 31, 2011 was $41.63. This represents an increase of 1.1% year to date. The Fund’s total return and average annual compound rate of return since inception August 1, 1984 were 2,392.3% and 12.5%, respectively. On December 15, 2011, the Growth Fund paid an income dividend of $0.07 per share, a short term capital gain of $0.02 and a long term capital gain distribution of $3.25 per share. At the close of the quarter, total net assets were $2,450,027,270 and were invested 5.4% in cash, cash equivalents and other assets net of liabilities and 94.6% in stocks. At the close of the quarter there were 96,879 shareholders in the Growth Fund.
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There are some positives for investors. First, it isn’t difficult to find small and mid-sized growth stocks that sell at reasonable valuations at this point. Second, companies have reduced their cost structures, improved their balance sheets and have significant earnings leverage in a reasonable growth environment. Finally, most investors remain cautious with regards to investing in stocks, which resulted in significant withdrawals from U.S. stock funds during this past year. This historically has been a positive indicator. Our portfolio remains diversified in small and mid-sized growth companies which are, for the most part, market leaders, have strong returns on capital, solid growth prospects and sell at reasonable valuations. We hold fifty-four positions. Our heaviest areas of concentration remain the technology and consumer sectors.
We purchased shares in LPL Investment Holdings and sold our position in BMC Software during the quarter ended December 31, 2011.
SBA Communications is the third largest wireless communication tower operator in the US. The tower industry has an attractive business model with recurring revenue from inflation adjusted contracts, high renewal rates and low maintenance expenditure. The industry will benefit from the continued build out of next generation or 4G wireless infrastructure by wireless carriers over the next few years to support the explosion in mobile data usage, driven by the proliferation of smartphones and tablets. The company is expected to generate double-digit top line growth over the next few years with strong operating margin leverage, given the low variable cost structure of the business. SBA Communications has an experienced management team with a strong track record. The stock sells at a reasonable valuation given the company’s strong cash earnings growth and stable revenue profile.
Meridian Value Fund® (MVALX)
The Meridian Value Fund’s net asset value per share at December 31, 2011 was $28.08. This represents a decrease of 2.4% year to date. The Fund’s total return and average annual compound rate of return since June 30, 1995 were 691.1% and 13.4%, respectively. The comparable period returns for the S&P 500 with dividends were 210.5% and 7.1%, respectively. On December 15, 2011, the Value Fund paid an income dividend of $0.13 per share. At the close of the quarter, total net assets were $721,035,953 and were invested 5.0% in cash, cash equivalents and other assets net of liabilities and 95.0% in stocks. At the close of the quarter there were 35,908 shareholders in the Value Fund.
Our investment strategy remains unchanged. We continue to seek out-of-favor companies typically having experienced an extended period of declining earnings. In recent years most earnings problems have been related to poor economic conditions. With some stability in the economy, albeit tenuous, we now see more companies that meet our strategy for company-specific reasons. These investments are the traditional strength and point of differentiation of the Meridian Value Fund. We seek to gradually shift the portfolio to more of these investments and expect that this should bode well for a return to the Fund’s historically strong performance levels. We hold 50 positions, representing 33 industry groups. We continue to
3
invest in companies of all market capitalizations and our largest areas of concentration are technology, retail and transportation.
During the quarter we purchased shares of Lennox International. We sold our positions in Heartland Express, Kohl’s and Sealed Air.
Hawaiian Electric Industries, Inc., one of our larger holdings, is the dominant electric utility in Hawaii. The company also owns American Savings Bank, the second largest bank in Hawaii, which contributes roughly one third of earnings. Earnings declined as years of strong economic growth in Hawaii spurred high demand for electricity that outstripped the company’s infrastructure, leading to elevated operating and maintenance costs. Bank earnings declined during the financial crisis, although conservative management cushioned the blow significantly compared to most banks. Earnings growth has resumed as rate increases now cover some of the increased utility operating costs. Further relief should come in 2012 and beyond due to an improved rate adjustment mechanism that encourages conservation and as new generating capacity comes online and earns double-digit returns on investment. The bank is also showing improved performance as the resilient Hawaiian economy outperforms the mainland. We expect earnings to grow from estimates of $1.43 per share in 2011 to $2.35 per share or more over the next 3 to 5 years. We believe the stock is a compelling value at less than 11 times normalized earnings and with a current dividend yield close to 5%.
Miscellaneous
You can sign up for E-mail Alerts on our website at www.meridianfund.com. When you sign up for E-mail Alerts you will receive notification of news items, shareholder reports, SEC filings and other information regarding the Meridian Funds.
The Meridian Funds are no-load and there are no transaction fees or commissions charged when you purchase shares directly through our transfer agent, BNY Mellon Investment Servicing (US) Inc. This is a very cost-effective way to purchase shares of the Meridian Funds if you do not need the services of a broker-dealer or if you make multiple purchases.
The information provided in this report should not be considered investment advice or a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in a particular Fund’s portfolio at the time you receive this report or that securities sold have not been repurchased. Securities discussed are presented as illustrations of companies that fit a particular Fund’s investment strategy and do not represent a Fund’s entire portfolio and in the aggregate may represent only a small percentage of a Fund’s portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that investment decisions Fund management makes in the future will be profitable or will equal the investment performance of the securities discussed herein. Management’s views presented herein and any discussion of a particular Fund’s portfolio holdings or performance are as of December 31, 2011 and are subject to change without notice.
4
Meridian Equity Income Fund
Summary of Portfolio Holdings
December 31, 2011 (Unaudited)
Portfolio Holdings by Category (% of total net assets) | ||||||||
Media | 3.2 | % | $ | 1,048,524 | ||||
Banking-Commercial | 1.7 | 569,472 | ||||||
Consumer Products-Household | 1.7 | 562,734 | ||||||
Hypermarkets & Super Centers | 1.7 | 556,664 | ||||||
Industrial Conglomerates | 1.7 | 555,210 | ||||||
Energy | 1.7 | 553,280 | ||||||
Soft Drinks | 1.7 | 550,664 | ||||||
Industrial Machinery | 1.6 | 541,513 | ||||||
Health Care Technology | 1.6 | 539,325 | ||||||
Home Improvement Retail | 1.6 | 538,112 | ||||||
Software & Services | 1.6 | 537,372 | ||||||
Chemicals-Specialty | 1.6 | 535,190 | ||||||
Oil & Gas-Storage & Transportation | 1.6 | 535,050 | ||||||
Leisure & Amusement | 1.6 | 532,032 | ||||||
Insurance-Multi-Line | 1.6 | 529,013 | ||||||
Health Care Products | 1.6 | 528,562 | ||||||
Air Freight & Logistics | 1.6 | 528,066 | ||||||
Media-Broadcasting & Cable TV | 1.6 | 527,631 | ||||||
Semiconductors | 1.6 | 527,472 | ||||||
Household-Home Furnishings | 1.6 | 525,888 | ||||||
Aerospace & Defense | 1.6 | 525,850 | ||||||
Distribution & Wholesale | 1.6 | 525,402 | ||||||
Insurance Brokers | 1.6 | 524,770 | ||||||
Data Processing & Outsourced Services | 1.6 | 523,914 | ||||||
Food & Meats-Packaged | 1.6 | 523,040 | ||||||
Brewers | 1.6 | 522,480 | ||||||
Independent Power Producers & Energy | 1.6 | 519,677 | ||||||
REITs-Diversified | 1.6 | 519,355 | ||||||
Semiconductor Equipment Manufacturing | 1.6 | 517,964 | ||||||
Insurance-Property & Casualty | 1.6 | 517,559 | ||||||
Pharmaceuticals | 1.6 | 517,098 | ||||||
Electronic Equipment Manufacturing | 1.6 | 515,376 |
5
Meridian Equity Income Fund
Summary of Portfolio Holdings (continued)
December 31, 2011 (Unaudited)
Paper & Forest Products | 1.6 | % | $ | 515,040 | ||||
Apparel Retail | 1.6 | 514,585 | ||||||
Food Retail | 1.6 | 513,376 | ||||||
Chemicals-Diversified | 1.6 | 512,736 | ||||||
Diversified Financial Services | 1.6 | 511,885 | ||||||
Health Care Equipment & Supplies | 1.6 | 511,128 | ||||||
Telecommunication Services-Integrated | 1.6 | 510,451 | ||||||
Metal & Glass Containers | 1.6 | 510,160 | ||||||
Retail-Drug Store | 1.6 | 509,124 | ||||||
Restaurants | 1.5 | 508,172 | ||||||
Construction & Engineering | 1.5 | 506,736 | ||||||
Environmental Facilities & Services | 1.5 | 506,678 | ||||||
Steel | 1.5 | 506,496 | ||||||
Food Distributors | 1.5 | 504,476 | ||||||
Paper & Packaging | 1.5 | 504,288 | ||||||
Tobacco | 1.5 | 503,253 | ||||||
Asset Management & Custody Banks | 1.5 | 502,980 | ||||||
Office Supplies | 1.5 | 501,429 | ||||||
Electric Utilities | 1.5 | 497,198 | ||||||
Railroads | 1.5 | 495,448 | ||||||
Commercial Printing | 1.5 | 493,723 | ||||||
Computer Hardware | 1.5 | 493,148 | ||||||
Banking-Regional Banks | 1.5 | 492,063 | ||||||
Retail | 1.5 | 491,213 | ||||||
Diversified Capital Markets | 1.5 | 490,158 | ||||||
Office Services & Supplies | 1.5 | 483,894 | ||||||
Electrical Components & Equipment | 1.4 | 461,241 | ||||||
Cash & Other Assets, Less Liabilities | 5.3 | 1,742,638 | ||||||
|
|
|
| |||||
100.0 | % | $ | 32,867,976 | |||||
|
|
|
|
6
Meridian Growth Fund
Summary of Portfolio Holdings
December 31, 2011 (Unaudited)
Portfolio Holdings by Category (% of total net assets) | ||||||||
Retail | 16.4 | % | $ | 402,035,472 | ||||
Tech-Software | 10.4 | 254,670,475 | ||||||
Technology | 6.1 | 149,086,466 | ||||||
Energy | 5.6 | 138,037,998 | ||||||
Banking-Commercial | 4.8 | 118,369,931 | ||||||
Brokerage & Money Management | 4.2 | 102,809,913 | ||||||
Restaurants | 4.1 | 101,259,085 | ||||||
U.S. Government Obligations | 4.1 | 99,996,850 | ||||||
Industrial Conglomerates | 3.6 | 88,976,355 | ||||||
Insurance Brokers | 3.5 | 85,113,120 | ||||||
Industrial Services | 3.3 | 79,832,908 | ||||||
Health Care Products | 3.1 | 76,126,616 | ||||||
Distribution & Wholesale | 2.8 | 67,855,702 | ||||||
Cellular Communications | 2.6 | 63,473,400 | ||||||
Building Products | 2.6 | 63,419,778 | ||||||
Flooring & Carpets | 2.6 | 62,597,115 | ||||||
Chemicals-Specialty | 2.5 | 61,500,451 | ||||||
Consumer Services | 2.3 | 57,398,037 | ||||||
Electronic Equipment Manufacturing | 2.1 | 50,688,400 | ||||||
Air Freight & Logistics | 2.0 | 48,500,736 | ||||||
Leisure & Amusement | 1.9 | 47,565,831 | ||||||
Real Estate Management & Services | 1.7 | 42,428,676 | ||||||
Health Care Technology | 1.6 | 38,795,536 | ||||||
Trucking | 1.6 | 38,570,906 | ||||||
Furniture & Fixtures | 1.4 | 33,735,825 | ||||||
Health Care Information Services | 1.3 | 31,192,175 | ||||||
Automotive Wholesale Services | 0.5 | 13,552,870 | ||||||
Cash & Other Assets, Less Liabilities | 1.3 | 32,436,643 | ||||||
|
|
|
| |||||
100.0 | % | $ | 2,450,027,270 | |||||
|
|
|
|
7
Meridian Value Fund
Summary of Portfolio Holdings
December 31, 2011 (Unaudited)
Portfolio Holdings by Category (% of total net assets) | ||||||||
Leisure & Amusement | 8.1 | % | $ | 58,260,958 | ||||
Diversified Financial Services | 7.8 | 55,773,497 | ||||||
Technology | 6.1 | 44,236,866 | ||||||
Railroads | 5.5 | 39,554,988 | ||||||
Energy | 5.2 | 37,661,228 | ||||||
Retail | 4.9 | 35,036,212 | ||||||
Industrial | 3.8 | 27,000,127 | ||||||
Industrial Products | 3.7 | 26,748,818 | ||||||
Industrial Services | 3.6 | 25,586,070 | ||||||
Automotive Wholesale Services | 3.3 | 23,411,264 | ||||||
Utilities | 3.0 | 21,673,218 | ||||||
Consulting Services | 2.9 | 20,853,742 | ||||||
Tech-Software | 2.9 | 20,821,380 | ||||||
Household Appliances | 2.8 | 20,380,724 | ||||||
Business Services | 2.8 | 20,224,610 | ||||||
Banking | 2.6 | 18,834,504 | ||||||
Transportation | 2.6 | 18,813,938 | ||||||
Insurance Brokers | 2.5 | 18,115,720 | ||||||
Office Services & Supplies | 2.2 | 15,839,818 | ||||||
Agriculture | 2.2 | 15,632,617 | ||||||
U.S. Government Obligations | 1.7 | 11,999,622 | ||||||
Storage | 1.6 | 11,557,048 | ||||||
Brokerage & Money Management | 1.5 | 11,119,325 | ||||||
Banking-Commercial | 1.5 | 11,054,063 | ||||||
Pharmaceuticals | 1.5 | 10,974,096 | ||||||
REITs-Diversified | 1.5 | 10,895,031 | ||||||
Semiconductors | 1.4 | 10,339,288 | ||||||
Home Improvement Retail | 1.4 | 10,060,729 | ||||||
Metals | 1.3 | 9,385,564 | ||||||
Aerospace & Defense | 1.1 | 8,176,031 | ||||||
Environmental Facilities & Services | 1.0 | 7,333,582 | ||||||
Air Freight & Logistics | 1.0 | 7,177,929 | ||||||
Health Care Services | 1.0 | 7,030,499 | ||||||
Restaurants | 0.7 | 5,296,336 | ||||||
Cash & Other Assets, Less Liabilities | 3.3 | 24,176,511 | ||||||
|
|
|
| |||||
100.0 | % | $ | 721,035,953 | |||||
|
|
|
|
8
Meridian Fund, Inc.
Disclosure of Fund Expenses (Unaudited)
For the Six Month Period July 1, 2011 to December 31, 2011
We believe it is important for you to understand the impact of fees and expenses on your investment. All mutual funds have operating expenses. As a shareholder of the Fund, you incur ongoing costs, which generally include costs for portfolio management and administrative services, and other Fund expenses. Operating expenses, which are deducted from a Fund’s gross income, directly reduce the investment return of the portfolio. A Fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period and assume reinvestment of all dividends and distributions.
Beginning Account Value 7/1/11 | Ending Account Value 12/31/11 | Expense Ratio(1) | Expenses Paid During Period(2) | |||||||||||||
Actual Fund Return | ||||||||||||||||
(See explanation below) | ||||||||||||||||
Meridian Equity Income Fund | $ | 1,000.00 | $ | 983.70 | 1.25 | %(4) | $ | 6.20 | ||||||||
Meridian Growth Fund | $ | 1,000.00 | $ | 946.50 | 0.83 | % | $ | 4.04 | ||||||||
Meridian Value Fund | $ | 1,000.00 | $ | 953.40 | 1.14 | % | $ | 5.57 | ||||||||
Hypothetical 5% Return(3) | ||||||||||||||||
(See explanation below) | ||||||||||||||||
Meridian Equity Income Fund | $ | 1,000.00 | $ | 1,018.75 | 1.25 | %(4) | $ | 6.31 | ||||||||
Meridian Growth Fund | $ | 1,000.00 | $ | 1,020.85 | 0.83 | % | $ | 4.19 | ||||||||
Meridian Value Fund | $ | 1,000.00 | $ | 1,019.30 | 1.14 | % | $ | 5.76 |
(1) | Annualized, based on the Fund’s most recent fiscal half-year expenses. |
(2) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183, the number of days in the most recent fiscal half-year, then divided by 366. |
(3) | Before expenses. |
(4) | See note 2 to Financial Statements. |
9
Meridian Fund, Inc.
Disclosure of Fund Expenses (Unaudited) (continued)
For the Six Month Period July 1, 2011 to December 31, 2011
The table above illustrates your Fund’s costs in two ways:
Actual Fund Return: This section helps you to estimate the actual expenses that you paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, the third column shows the period’s annualized expense ratio, and the last column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund at the beginning of the period. You may use the information here, together with your account value, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period.”
Hypothetical 5% Return: This section is intended to help you compare your Fund’s costs with those of other mutual funds. It assumes that the Fund had a return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case, because the return used is not the Fund’s actual return, the results do not apply to your investment. You can assess your Fund’s costs by comparing this 5% Return hypothetical example with the 5% Return hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as short-term redemption and exchange fees or sales and service charges you may pay third party broker/dealers. Had these transactional costs been included, your costs would have been higher. Therefore, the hypothetical section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
10
Meridian Equity Income Fund
Schedule of Investments
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 94.7% |
| |||||||
AEROSPACE & DEFENSE - 1.6% |
| |||||||
Lockheed Martin Corp. | 6,500 | $ | 525,850 | |||||
AIR FREIGHT & LOGISTICS - 1.6% |
| |||||||
United Parcel Service, Inc. Class B | 7,215 | 528,066 | ||||||
APPAREL RETAIL - 1.6% |
| |||||||
American Eagle Outfitters, Inc. | 33,655 | 514,585 | ||||||
ASSET MANAGEMENT & CUSTODY BANKS - 1.5% |
| |||||||
Federated Investors, Inc. Class B | 33,200 | 502,980 | ||||||
BANKING-COMMERCIAL - 1.7% |
| |||||||
Bank of Hawaii Corp. | 12,800 | 569,472 | ||||||
BANKING-REGIONAL BANKS - 1.5% |
| |||||||
Cullen/Frost Bankers, | 9,300 | 492,063 | ||||||
BREWERS - 1.6% |
| |||||||
Molson Coors Brewing Co. Class B | 12,000 | 522,480 | ||||||
CHEMICALS-DIVERSIFIED - 1.6% |
| |||||||
EI du Pont de Nemours & Co. | 11,200 | 512,736 | ||||||
CHEMICALS-SPECIALTY - 1.6% |
| |||||||
RPM International, Inc. | 21,800 | 535,190 | ||||||
COMMERCIAL PRINTING - 1.5% |
| |||||||
R. R. Donnelley & Sons Co. | 34,215 | 493,723 |
Shares | Value | |||||||
COMPUTER HARDWARE - 1.5% |
| |||||||
Diebold, Inc. | 16,400 | $ | 493,148 | |||||
CONSTRUCTION & ENGINEERING - 1.5% |
| |||||||
Mine Safety Appliances | 15,300 | 506,736 | ||||||
CONSUMER PRODUCTS-HOUSEHOLD - 1.7% |
| |||||||
Kimberly-Clark Corp. | 7,650 | 562,734 | ||||||
DATA PROCESSING & OUTSOURCED |
| |||||||
Paychex, Inc. | 17,400 | 523,914 | ||||||
DISTRIBUTION & WHOLESALE - 1.6% |
| |||||||
Genuine Parts Co. | 8,585 | 525,402 | ||||||
DIVERSIFIED CAPITAL MARKETS - 1.5% |
| |||||||
NYSE Euronext | 18,780 | 490,158 | ||||||
DIVERSIFIED FINANCIAL SERVICES - 1.6% |
| |||||||
Broadridge Financial Solutions, Inc. | 22,700 | 511,885 | ||||||
ELECTRIC UTILITIES - 1.5% |
| |||||||
PPL Corp. | 16,900 | 497,198 | ||||||
ELECTRICAL COMPONENTS & EQUIPMENT - 1.4% |
| |||||||
Emerson Electric Co. | 9,900 | 461,241 | ||||||
ELECTRONIC EQUIPMENT MANUFACTURING - 1.6% |
| |||||||
Molex, Inc. | 21,600 | 515,376 | ||||||
ENERGY - 1.7% |
| |||||||
Chevron Corp. | 5,200 | 553,280 | ||||||
ENVIRONMENTAL FACILITIES & SERVICES - 1.5% |
| |||||||
Waste Management, Inc. | 15,490 | 506,678 |
The accompanying notes are an integral part of the financial statements.
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Meridian Equity Income Fund
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS (continued) |
| |||||||
FOOD DISTRIBUTORS - 1.5% |
| |||||||
SYSCO Corp. | 17,200 | $ | 504,476 | |||||
FOOD & MEATS-PACKAGED - 1.6% |
| |||||||
Kraft Foods, Inc. Class A | 14,000 | 523,040 | ||||||
FOOD RETAIL - 1.6% |
| |||||||
Safeway, Inc. | 24,400 | 513,376 | ||||||
HEALTH CARE EQUIPMENT & SUPPLIES - 1.6% |
| |||||||
Hillenbrand, Inc. | 22,900 | 511,128 | ||||||
HEALTH CARE PRODUCTS - 1.6% |
| |||||||
Abbott Laboratories | 9,400 | 528,562 | ||||||
HEALTH CARE TECHNOLOGY - 1.6% |
| |||||||
Medtronic, Inc. | 14,100 | 539,325 | ||||||
HOME IMPROVEMENT RETAIL - 1.6% |
| |||||||
Home Depot, Inc. (The) | 12,800 | 538,112 | ||||||
HOUSEHOLD-HOME FURNISHINGS - 1.6% |
| |||||||
Leggett & Platt, Inc. | 22,825 | 525,888 | ||||||
HYPERMARKETS & SUPER CENTERS - 1.7% |
| |||||||
Wal-Mart Stores, Inc. | 9,315 | 556,664 | ||||||
INDEPENDENT POWER PRODUCERS & ENERGY - 1.6% |
| |||||||
Constellation Energy Group, Inc. | 13,100 | 519,677 | ||||||
INDUSTRIAL CONGLOMERATES - 1.7% |
| |||||||
General Electric Co. | 31,000 | 555,210 | ||||||
INDUSTRIAL MACHINERY - 1.6% |
| |||||||
Eaton Corp. | 12,440 | 541,513 |
Shares | Value | |||||||
INSURANCE BROKERS - 1.6% |
| |||||||
Willis Group Holdings Plc | 13,525 | $ | $524,770 | |||||
INSURANCE-MULTI-LINE - 1.6% |
| |||||||
Allstate Corp. (The) | 19,300 | 529,013 | ||||||
INSURANCE-PROPERTY & CASUALTY - 1.6% |
| |||||||
Mercury General Corp. | 11,345 | 517,559 | ||||||
LEISURE & AMUSEMENT - 1.6% |
| |||||||
Carnival Corp. | 16,300 | 532,032 | ||||||
MEDIA - 3.2% |
| |||||||
Meredith Corp. | 15,400 | 502,810 | ||||||
Time Warner, Inc. | 15,100 | 545,714 | ||||||
|
| |||||||
1,048,524 | ||||||||
MEDIA-BROADCASTING & CABLE TV - 1.6% |
| |||||||
Time Warner Cable, Inc. | 8,300 | 527,631 | ||||||
METAL & GLASS CONTAINERS - 1.6% |
| |||||||
Greif, Inc. Class A | 11,200 | 510,160 | ||||||
OFFICE SUPPLIES - 1.5% |
| |||||||
Staples, Inc. | 36,100 | 501,429 | ||||||
OFFICE SERVICES & SUPPLIES - 1.5% |
| |||||||
Pitney Bowes, Inc. | 26,100 | 483,894 | ||||||
OIL & GAS-STORAGE & TRANSPORTATION -1.6% |
| |||||||
Spectra Energy Corp. | 17,400 | 535,050 | ||||||
PAPER & FOREST PRODUCTS - 1.6% |
| |||||||
International Paper Co. | 17,400 | 515,040 |
The accompanying notes are an integral part of the financial statements.
12
Meridian Equity Income Fund
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS (continued) |
| |||||||
PAPER & PACKAGING - 1.5% |
| |||||||
Sonoco Products Co. | 15,300 | $ | 504,288 | |||||
PHARMACEUTICALS - 1.6% |
| |||||||
Johnson & Johnson | 7,885 | 517,098 | ||||||
RAILROADS - 1.5% |
| |||||||
Norfolk Southern Corp. | 6,800 | 495,448 | ||||||
REITS-DIVERSIFIED - 1.6% |
| |||||||
Kimco Realty Corp. REIT | 31,980 | 519,355 | ||||||
RESTAURANTS - 1.5% |
| |||||||
McDonald’s Corp. | 5,065 | 508,172 | ||||||
RETAIL - 1.5% |
| |||||||
Mattel, Inc. | 17,695 | 491,213 | ||||||
RETAIL-DRUG STORE - 1.6% |
| |||||||
Walgreen Co. | 15,400 | 509,124 | ||||||
SEMICONDUCTORS - 1.6% |
| |||||||
Microchip Technology, | 14,400 | 527,472 | ||||||
SEMICONDUCTOR EQUIPMENT |
| |||||||
KLA-Tencor Corp. | 10,735 | 517,964 | ||||||
SOFT DRINKS - 1.7% |
| |||||||
Coca-Cola Co. (The) | 7,870 | 550,664 | ||||||
SOFTWARE & SERVICES - 1.6% |
| |||||||
Microsoft Corp. | 20,700 | 537,372 |
Shares | Value | |||||||
STEEL - 1.5% |
| |||||||
Nucor Corp. | 12,800 | $ | 506,496 | |||||
TELECOMMUNICATION SERVICES-INTEGRATED - 1.6% |
| |||||||
AT&T, Inc. | 16,880 | 510,451 | ||||||
TOBACCO - 1.5% |
| |||||||
Reynolds American, Inc. | 12,150 | 503,253 | ||||||
TOTAL INVESTMENTS - 94.7% |
| 31,125,338 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES - 5.3% |
| 1,742,638 | ||||||
|
| |||||||
NET ASSETS - 100.0% |
| $ | 32,867,976 | |||||
|
|
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
13
Meridian Growth Fund
Schedule of Investments
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 94.6% |
| |||||||
AIR FREIGHT & LOGISTICS - 2.0% |
| |||||||
Expeditors International of Washington, Inc. | 1,184,100 | $ | 48,500,736 | |||||
AUTOMOTIVE WHOLESALE SERVICES - 0.5% |
| |||||||
Copart, Inc.* | 283,000 | 13,552,870 | ||||||
BANKING - COMMERCIAL - 4.8% |
| |||||||
Bank of Hawaii Corp. | 1,178,000 | 52,409,220 | ||||||
CVB Financial Corp. | 1,361,200 | 13,652,836 | ||||||
East West Bancorp, Inc. | 2,648,500 | 52,307,875 | ||||||
|
| |||||||
118,369,931 | ||||||||
BROKERAGE & MONEY MANAGEMENT - 4.2% |
| |||||||
Affiliated Managers | 508,000 | 48,742,600 | ||||||
LPL Investment | 216,000 | 6,596,640 | ||||||
T. Rowe Price Group, | 833,550 | 47,470,673 | ||||||
|
| |||||||
102,809,913 | ||||||||
BUILDING PRODUCTS - 2.6% |
| |||||||
Valspar Corp. | 1,627,400 | 63,419,778 | ||||||
CELLULAR COMMUNICATIONS - 2.6% |
| |||||||
SBA Communications Corp. | 1,477,500 | 63,473,400 | ||||||
CHEMICALS-SPECIALTY - 2.5% |
| |||||||
RPM International, Inc. | 2,505,110 | 61,500,451 | ||||||
CONSUMER SERVICES - 2.3% |
| |||||||
Rollins, Inc. | 2,583,170 | 57,398,037 | ||||||
DISTRIBUTION & WHOLESALE - 2.8% |
| |||||||
United Stationers, Inc. . | 902,100 | 29,372,376 | ||||||
Watsco, Inc. | 586,100 | 38,483,326 | ||||||
|
| |||||||
67,855,702 |
Shares | Value | |||||||
ELECTRONIC EQUIPMENT |
| |||||||
AMETEK, Inc. | 1,204,000 | $ | 50,688,400 | |||||
ENERGY - 5.6% |
| |||||||
Continental Resources, | 601,000 | 40,092,710 | ||||||
Core Laboratories NV (Netherlands) | 232,900 | 26,538,955 | ||||||
FMC Technologies, Inc.* | 575,960 | 30,082,391 | ||||||
Noble Energy, Inc. | 437,800 | 41,323,942 | ||||||
|
| |||||||
138,037,998 | ||||||||
FLOORING & CARPETS - 2.6% |
| |||||||
Mohawk Industries, | 1,045,900 | 62,597,115 | ||||||
FURNITURE & FIXTURES - 1.4% |
| |||||||
Herman Miller, Inc. | 1,828,500 | 33,735,825 | ||||||
HEALTH CARE INFORMATION SERVICES - 1.3% |
| |||||||
Cerner Corp.* | 509,260 | 31,192,175 | ||||||
HEALTH CARE PRODUCTS - 3.1% |
| |||||||
DENTSPLY International, Inc. | 1,446,300 | 50,606,037 | ||||||
Edwards Lifesciences Corp.* | 360,970 | 25,520,579 | ||||||
|
| |||||||
76,126,616 | ||||||||
HEALTH CARE TECHNOLOGY - 1.6% |
| |||||||
IDEXX Laboratories, | 504,100 | 38,795,536 | ||||||
INDUSTRIAL CONGLOMERATES - 3.6% |
| |||||||
Cooper Industries Plc | 548,800 | 29,717,520 | ||||||
Pall Corp. | 1,036,900 | 59,258,835 | ||||||
|
| |||||||
88,976,355 |
The accompanying notes are an integral part of the financial statements.
14
Meridian Growth Fund
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS (continued) |
| |||||||
INDUSTRIAL SERVICES - 3.3% |
| |||||||
Ritchie Bros. Auctioneers, Inc. (Canada) | 1,095,600 | $ | 24,190,848 | |||||
Waste Connections, Inc. | 1,679,000 | 55,642,060 | ||||||
|
| |||||||
79,832,908 | ||||||||
INSURANCE BROKERS - 3.5% |
| |||||||
Brown & Brown, Inc. | 1,129,550 | 25,561,716 | ||||||
Willis Group Holdings Plc (United Kingdom) | 1,534,830 | 59,551,404 | ||||||
|
| |||||||
85,113,120 | ||||||||
LEISURE & AMUSEMENT - 1.9% |
| |||||||
Royal Caribbean Cruises, | 1,920,300 | 47,565,831 | ||||||
REAL ESTATE MANAGEMENT & SERVICES - 1.7% |
| |||||||
Jones Lang LaSalle, Inc. | 692,600 | 42,428,676 | ||||||
RESTAURANTS - 4.1% |
| |||||||
Arcos Dorados Holdings, Inc. Class A (Argentina) | 2,328,540 | 47,804,926 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,060,388 | 53,454,159 | ||||||
|
| |||||||
101,259,085 | ||||||||
RETAIL - 16.4% |
| |||||||
Advance Auto Parts, | 876,600 | 61,037,658 | ||||||
Bed Bath & Beyond, Inc.* | 932,000 | 54,028,040 | ||||||
CarMax, Inc.* | 1,789,350 | 54,539,388 | ||||||
Coach, Inc. | 928,900 | 56,700,056 | ||||||
Family Dollar Stores, | 1,037,700 | 59,833,782 | ||||||
Mattel, Inc. | 2,082,700 | 57,815,752 | ||||||
PetSmart, Inc. | 1,132,400 | 58,080,796 | ||||||
|
| |||||||
402,035,472 | ||||||||
TECHNOLOGY - 6.1% |
| |||||||
Autodesk, Inc.* | 1,064,900 | 32,298,417 | ||||||
Open Text Corp.* | 453,700 | 23,202,218 | ||||||
Trimble Navigation, | 1,036,200 | 44,971,080 |
Shares | Value | |||||||
TECHNOLOGY (continued) |
| |||||||
Zebra Technologies Corp. | 1,358,713 | $ | 48,614,751 | |||||
|
| |||||||
149,086,466 | ||||||||
TECHSOFTWARE - 10.4% |
| |||||||
Advent Software, Inc.* | 1,575,476 | 38,378,595 | ||||||
Blackbaud, Inc. | 1,814,600 | 50,264,420 | ||||||
Citrix Systems, Inc.* | 454,400 | 27,591,168 | ||||||
MICROS Systems, Inc.*. | 800,700 | 37,296,606 | ||||||
Nuance Communications, Inc.* | 907,400 | 22,830,184 | ||||||
Solera Holdings, Inc. | 1,028,900 | 45,827,206 | ||||||
Teradata Corp.* | 669,600 | 32,482,296 | ||||||
|
| |||||||
254,670,475 | ||||||||
TRUCKING - 1.6% |
| |||||||
J.B. Hunt Transport Services, Inc. | 855,800 | 38,570,906 | ||||||
TOTAL COMMON STOCKS - 94.6% (Cost $1,876,276,328) |
| 2,317,593,777 | ||||||
|
| |||||||
U.S. GOVERNMENT OBLIGATIONS - 4.1% |
| |||||||
U.S. Treasury Bill @ .021%** |
| 99,996,850 | ||||||
TOTAL U.S. GOVERNMENT OBLIGATIONS |
| 99,996,850 | ||||||
|
| |||||||
TOTAL INVESTMENTS - 98.7% |
| 2,417,590,627 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES - 1.3% |
| 32,436,643 | ||||||
|
| |||||||
NET ASSETS - 100.0% |
| $ | 2,450,027,270 | |||||
|
|
* | Non-income producing securities |
** | Annualized yield at date of purchase |
The accompanying notes are an integral part of the financial statements.
15
Meridian Value Fund
Schedule of Investments
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS - 95.0% |
| |||||||
AEROSPACE & DEFENSE - 1.1% |
| |||||||
Orbital Sciences Corp.*. | 562,700 | $ | 8,176,031 | |||||
AGRICULTURE - 2.2% |
| |||||||
Monsanto Co. | 223,100 | 15,632,617 | ||||||
AIR FREIGHT & LOGISTICS - 1.0% |
| |||||||
UTi Worldwide, Inc. . | 540,100 | 7,177,929 | ||||||
AUTOMOTIVE WHOLESALE SERVICES - 3.3% |
| |||||||
LKQ Corp.* | 778,300 | 23,411,264 | ||||||
BANKING - 2.6% |
| |||||||
Wells Fargo & Co. | 683,400 | 18,834,504 | ||||||
BANKING-COMMERCIAL - 1.5% |
| |||||||
CVB Financial Corp. . | 1,102,100 | 11,054,063 | ||||||
BROKERAGE & MONEY MANAGEMENT - 1.5% |
| |||||||
TD Ameritrade Holding Corp. | 710,500 | 11,119,325 | ||||||
BUSINESS SERVICES - 2.8% |
| |||||||
Cintas Corp. | 581,000 | 20,224,610 | ||||||
CONSULTING SERVICES - 2.9% |
| |||||||
Huron Consulting Group, Inc.*. | 538,300 | 20,853,742 | ||||||
DIVERSIFIED FINANCIAL SERVICES - 7.8% |
| |||||||
Broadridge Financial Solutions, Inc. | 997,900 | 22,502,645 | ||||||
Equifax, Inc. . | 444,000 | 17,200,560 | ||||||
Heartland Payment Systems, Inc. | 659,700 | 16,070,292 | ||||||
|
| |||||||
55,773,497 |
Shares | Value | |||||||
ENERGY - 5.2% |
| |||||||
Apache Corp. . | 77,500 | $ | 7,019,950 | |||||
EOG Resources, Inc. | 219,700 | 21,642,647 | ||||||
Ultra Petroleum Corp.*. | 303,700 | 8,998,631 | ||||||
|
| |||||||
37,661,228 | ||||||||
ENVIRONMENTAL FACILITIES & SERVICES - 1.0% |
| |||||||
Waste Management, Inc. | 224,200 | 7,333,582 | ||||||
HEALTH CARE SERVICES - 1.0% |
| |||||||
ICON Plc ADR* (Ireland) | 410,900 | 7,030,499 | ||||||
HOME IMPROVEMENT RETAIL - 1.4% |
| |||||||
Sherwin-Williams Co. (The) | 112,700 | 10,060,729 | ||||||
HOUSEHOLD APPLIANCES - 2.8% |
| |||||||
Stanley Black & Decker, Inc. | 301,490 | 20,380,724 | ||||||
INDUSTRIAL - 3.8% |
| |||||||
Aecon Group, Inc. (Canada) | 633,600 | 6,627,456 | ||||||
Flowserve Corp. | 125,300 | 12,444,796 | ||||||
Lennox International, Inc. | 234,900 | 7,927,875 | ||||||
|
| |||||||
27,000,127 | ||||||||
INDUSTRIAL PRODUCTS - 3.7% |
| |||||||
Cummins, Inc. | 84,400 | 7,428,888 | ||||||
General Cable Corp.* | 135,400 | 3,386,354 | ||||||
Lincoln Electric Holdings, Inc. | 407,300 | 15,933,576 | ||||||
|
| |||||||
26,748,818 | ||||||||
INDUSTRIAL SERVICES - 3.6% |
| |||||||
Ritchie Bros. Auctioneers, Inc. (Canada) | 390,700 | 8,626,656 | ||||||
W.W. Grainger, Inc. | 90,600 | 16,959,414 | ||||||
|
| |||||||
25,586,070 | ||||||||
INSURANCE BROKERS - 2.5% |
| |||||||
Willis Group Holdings Plc (United Kingdom) | 466,900 | 18,115,720 |
The accompanying notes are an integral part of the financial statements.
16
Meridian Value Fund
Schedule of Investments (continued)
December 31, 2011 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS (continued) |
| |||||||
LEISURE & AMUSEMENT - 8.1% |
| |||||||
Bally Technologies, Inc.* | 457,100 | $ | 18,082,876 | |||||
Carnival Corp. | 673,200 | 21,973,248 | ||||||
International Speedway Corp. Class A | 337,100 | 8,545,485 | ||||||
Polaris Industries, Inc. | 172,550 | 9,659,349 | ||||||
|
| |||||||
58,260,958 | ||||||||
METALS - 1.3% |
| |||||||
Newmont Mining Corp. . | 156,400 | 9,385,564 | ||||||
OFFICE SERVICES & SUPPLIES - 2.2% |
| |||||||
Steelcase, Inc. Class A | 2,123,300 | 15,839,818 | ||||||
PHARMACEUTICALS - 1.5% |
| |||||||
BioMarin Pharmaceutical, Inc.* | 319,200 | 10,974,096 | ||||||
RAILROADS - 5.5% |
| |||||||
GATX Corp. | 449,800 | 19,638,268 | ||||||
Union Pacific Corp. | 188,000 | 19,916,720 | ||||||
|
| |||||||
39,554,988 | ||||||||
REITS-DIVERSIFIED - 1.5% |
| |||||||
Host Hotels & Resorts, Inc. REIT | 737,646 | 10,895,031 | ||||||
RESTAURANTS - 0.7% |
| |||||||
Denny’s Corp.* | 1,408,600 | 5,296,336 | ||||||
RETAIL - 4.9% |
| |||||||
Costco Wholesale Corp. | 216,100 | 18,005,452 | ||||||
Mattel, Inc. . | 613,500 | 17,030,760 | ||||||
|
| |||||||
35,036,212 | ||||||||
SEMICONDUCTORS - 1.4% |
| |||||||
Power Integrations, Inc. | 311,800 | 10,339,288 | ||||||
STORAGE - 1.6% |
| |||||||
Mobile Mini, Inc.* | 662,295 | 11,557,048 | ||||||
TECHNOLOGY - 6.1% |
| |||||||
Autodesk, Inc.* | 551,200 | 16,717,896 | ||||||
eBay, Inc.* | 307,800 | 9,335,574 |
Shares | Value | |||||||
TECHNOLOGY (continued) |
| |||||||
Zebra Technologies Corp. Class A* | 508,200 | $ | 18,183,396 | |||||
|
| |||||||
44,236,866 | ||||||||
TECH-SOFTWARE - 2.9% |
| |||||||
Citrix Systems, Inc.* | 137,950 | 8,376,324 | ||||||
Compuware Corp.* | 1,495,800 | 12,445,056 | ||||||
|
| |||||||
20,821,380 | ||||||||
TRANSPORTATION - 2.6% |
| |||||||
Alexander & Baldwin, Inc. | 460,900 | 18,813,938 | ||||||
UTILITIES - 3.0% |
| |||||||
Hawaiian Electric Industries, Inc. | 818,475 | 21,673,218 | ||||||
TOTAL COMMON STOCKS - 95.0% |
| 684,859,820 | ||||||
|
| |||||||
U.S. GOVERNMENT OBLIGATIONS - 1.7% |
| |||||||
U.S. Treasury Bill @ .021%** |
| 11,999,622 | ||||||
TOTAL U.S. GOVERNMENT OBLIGATIONS |
| 11,999,622 | ||||||
|
| |||||||
TOTAL INVESTMENTS - 96.7% |
| 696,859,442 | ||||||
CASH AND OTHER ASSETS, LESS LIABILITIES - 3.3% |
| 24,176,511 | ||||||
|
| |||||||
NET ASSETS - 100.0% |
| $ | 721,035,953 | |||||
|
|
ADR - American Depository Receipt
REIT - Real Estate Investment Trust
* | Non-income producing securities |
** | Annualized yield at date of purchase |
The accompanying notes are an integral part of the financial statements.
17
Meridian Fund, Inc.
Statements of Assets and Liabilities
December 31, 2011 (Unaudited)
Equity Income Fund | Growth Fund | Value Fund | ||||||||||
ASSETS | ||||||||||||
Investments (Cost $29,153,185, $1,976,273,178 and $583,773,595, respectively) | $ | 31,125,338 | $ | 2,417,590,627 | $ | 696,859,442 | ||||||
Cash | 1,700,753 | 27,851,985 | 22,594,008 | |||||||||
Receivable for: | ||||||||||||
Capital shares purchased | 50 | 3,005,738 | 24,815 | |||||||||
Securities sold | 124,337 | 7,912,644 | 2,794,474 | |||||||||
Dividends | 86,729 | 1,779,219 | 869,760 | |||||||||
Interest | 2 | 67 | 32 | |||||||||
Prepaid expenses | 35,731 | 28,110 | 9,004 | |||||||||
|
|
|
|
|
| |||||||
TOTAL ASSETS | 33,072,940 | 2,458,168,390 | 723,151,535 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES | ||||||||||||
Payable for: | ||||||||||||
Capital shares sold. | 194 | 2,809,716 | 917,547 | |||||||||
Securities purchased | 170,554 | 3,589,368 | 435,505 | |||||||||
Accrued expenses: | ||||||||||||
Investment advisory fees | 21,192 | 1,519,337 | 595,166 | |||||||||
Other payables and accrued expenses | 13,024 | 222,699 | 167,364 | |||||||||
|
|
|
|
|
| |||||||
TOTAL LIABILITIES | 204,964 | 8,141,120 | 2,115,582 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 32,867,976 | $ | 2,450,027,270 | $ | 721,035,953 | ||||||
|
|
|
|
|
| |||||||
Capital shares issued and outstanding, par value $0.01 (500,000,000, 500,000,000 and 500,000,000 shares authorized, respectively) | 3,216,850 | 58,853,128 | 25,673,656 | |||||||||
|
|
|
|
|
| |||||||
Net asset value per share (offering and redemption price). | $ | 10.22 | $ | 41.63 | $ | 28.08 | ||||||
|
|
|
|
|
| |||||||
Net Assets consist of: | ||||||||||||
Paid in capital | $ | 35,565,328 | $ | 2,007,131,035 | $ | 815,673,209 | ||||||
Accumulated net realized gain (loss) | (4,852,194 | ) | 2,400,177 | (209,126,674 | ) | |||||||
Net unrealized appreciation on investments | 1,972,153 | 441,317,449 | 113,085,847 | |||||||||
Undistributed (distributions in excess of) net investment income | 182,689 | (821,391 | ) | 1,403,571 | ||||||||
|
|
|
|
|
| |||||||
$ | 32,867,976 | $ | 2,450,027,270 | $ | 721,035,953 | |||||||
|
|
|
|
|
|
The accompanying notes are an integral part of the financial statements.
18
Meridian Fund, Inc.
Statements of Operations
For the Six Months Ended December 31, 2011 (Unaudited)
Equity Income Fund | Growth Fund | Value Fund | ||||||||||
INVESTMENT INCOME | ||||||||||||
Dividends | $ | 583,106 | $ | 12,283,413 | $ | 5,681,388 | ||||||
Foreign tax withholding | — | (62,087 | ) | (22,996 | ) | |||||||
Interest | 395 | 20,096 | 7,247 | |||||||||
|
|
|
|
|
| |||||||
Total investment income | 583,501 | 12,241,422 | 5,665,639 | |||||||||
|
|
|
|
|
| |||||||
EXPENSES | ||||||||||||
Investment advisory fees | 149,722 | 8,885,757 | 3,736,469 | |||||||||
Custodian fees | 7,022 | 145,337 | 44,203 | |||||||||
Directors’ fees and expenses | 887 | 43,490 | 13,508 | |||||||||
Pricing fees | 15,695 | 136,881 | 54,913 | |||||||||
Professional fees | 32,391 | 58,743 | 44,652 | |||||||||
Registration and filing fees | 17,934 | 28,504 | 20,613 | |||||||||
Reports to shareholders | — | 193,063 | 136,085 | |||||||||
Transfer agent fees | 6,787 | 296,605 | 205,364 | |||||||||
Miscellaneous expenses | 220 | 14,256 | 6,163 | |||||||||
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| |||||||
Total expenses | 230,658 | 9,802,636 | 4,261,970 | |||||||||
Fees waived by Adviser (Note 2) | (27,959 | ) | — | — | ||||||||
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|
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| |||||||
Net expenses | 202,699 | 9,802,636 | 4,261,970 | |||||||||
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| |||||||
Net investment income | 380,802 | 2,438,786 | 1,403,669 | |||||||||
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|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||
Net realized gain on investments | 775,879 | 33,069,999 | 18,518,554 | |||||||||
Net change in unrealized appreciation/depreciation on investments | (1,841,021 | ) | (182,966,214 | ) | (65,538,109 | ) | ||||||
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| |||||||
Net realized and unrealized loss on investments | (1,065,142 | ) | (149,896,215 | ) | (47,019,555 | ) | ||||||
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| |||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (684,340 | ) | $ | (147,457,429 | ) | $ | (45,615,886 | ) | |||
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The accompanying notes are an integral part of the financial statements.
19
Meridian Fund, Inc.
Statements of Changes in Net Assets
Equity Income Fund | Growth Fund | |||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 380,802 | $ | 623,868 | $ | 2,438,786 | $ | 3,697,464 | ||||||||
Net realized gain on investments | 775,879 | 1,390,957 | 33,069,999 | 183,214,046 | ||||||||||||
Net change in unrealized appreciation/depreciation on investments | (1,841,021 | ) | 4,992,670 | (182,966,214 | ) | 431,052,677 | ||||||||||
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|
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| |||||||||
Net increase (decrease) in net assets from operations | (684,340 | ) | 7,007,495 | (147,457,429 | ) | 617,964,187 | ||||||||||
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DISTRIBUTIONS TO SHAREHOLDERS |
| |||||||||||||||
Distributions from ordinary income. | (666,723 | ) | (617,600 | ) | (3,952,962 | ) | (3,004,679 | ) | ||||||||
Distributions from net realized capital gains | — | — | (179,544,634 | ) | (345,185 | ) | ||||||||||
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Net distributions | (666,723 | ) | (617,600 | ) | (183,497,596 | ) | (3,349,864 | ) | ||||||||
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| |||||||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Proceeds from sales of shares | 476,670 | 4,344,602 | 292,311,926 | 944,903,617 | ||||||||||||
Reinvestment of distributions | 661,090 | 611,890 | 177,473,379 | 3,175,566 | ||||||||||||
Redemption fees | 388 | 218 | 103,569 | 237,068 | ||||||||||||
Less: redemptions of shares | (2,562,707 | ) | (639,833 | ) | (303,988,406 | ) | (386,114,353 | ) | ||||||||
�� |
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Increase (decrease) resulting from capital share transactions | (1,424,559 | ) | 4,316,877 | 165,900,468 | 562,201,898 | |||||||||||
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| |||||||||
Total increase (decrease) in net assets | (2,775,622 | ) | 10,706,772 | (165,054,557 | ) | 1,176,816,221 | ||||||||||
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| |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 35,643,598 | 24,936,826 | 2,615,081,827 | 1,438,265,606 | ||||||||||||
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End of period | $ | 32,867,976 | $ | 35,643,598 | $ | 2,450,027,270 | $ | 2,615,081,827 | ||||||||
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Undistributed (distributions in excess of) net investment income at end of period | $ | 182,689 | $ | 468,610 | $ | (821,391 | ) | $ | 692,785 | |||||||
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The accompanying notes are an integral part of the financial statements.
20
Meridian Fund, Inc.
Statements of Changes in Net Assets
Value Fund | ||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | |||||||
OPERATIONS | ||||||||
Net investment income | $ | 1,403,669 | $ | 3,256,620 | ||||
Net realized gain on investments | 18,518,554 | 115,450,037 | ||||||
Net change in unrealized appreciation/depreciation on investments. | (65,538,109 | ) | 110,782,863 | |||||
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|
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| |||||
Net increase (decrease) in net assets from operations | (45,615,886 | ) | 229,489,520 | |||||
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| |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Distributions from ordinary income | (3,256,481 | ) | (2,508,893 | ) | ||||
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| |||||
Net distributions | (3,256,481 | ) | (2,508,893 | ) | ||||
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| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||
Proceeds from sales of shares | 8,665,783 | 41,931,473 | ||||||
Reinvestment of distributions | 3,188,213 | 2,443,388 | ||||||
Redemption fees | 3,260 | 6,091 | ||||||
Less: redemptions of shares | (111,260,912 | ) | (204,985,104 | ) | ||||
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| |||||
Decrease resulting from capital share transactions | (99,403,656 | ) | (160,604,152 | ) | ||||
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| |||||
Total increase (decrease) in net assets | (148,276,023 | ) | 66,376,475 | |||||
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| |||||
NET ASSETS | ||||||||
Beginning of period | 869,311,976 | 802,935,501 | ||||||
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| |||||
End of period | $ | 721,035,953 | $ | 869,311,976 | ||||
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| |||||
Undistributed net investment income at end of period | $ | 1,403,571 | $ | 3,256,383 | ||||
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The accompanying notes are an integral part of the financial statements.
21
Meridian Equity Income Fund
Financial Highlights
Selected data for each share of capital stock outstanding throughout each period
For the Six Months Ended December 31, 2011 (Unaudited) | For the Fiscal Year Ended June 30, | For the fiscal period from January 31, 2005 through June 30, 2005+ | ||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||
Net Asset Value — Beginning of Period | $ | 10.61 | $ | 8.51 | $ | 6.88 | $ | 10.37 | $ | 13.14 | $ | 11.05 | $ | 10.10 | $ | 10.00 | ||||||||||||||||
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| |||||||||||||||||
Income (Loss) from Investment Operations | ||||||||||||||||||||||||||||||||
Net Investment Income | 0.12 | 1 | 0.20 | 1 | 0.19 | 1 | 0.22 | 1 | 0.24 | 1 | 0.18 | 0.15 | 0.06 | |||||||||||||||||||
Net Gains (Losses) on Investments (both realized and unrealized) | (0.30 | ) | 2.11 | 1.63 | (2.96 | ) | (2.25 | ) | 2.19 | 0.93 | 0.04 | |||||||||||||||||||||
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Total From Investment Operations | (0.18 | ) | 2.31 | 1.82 | (2.74 | ) | (2.01 | ) | 2.37 | 1.08 | 0.10 | |||||||||||||||||||||
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Less Distributions | ||||||||||||||||||||||||||||||||
Distributions from Net Investment Income | (0.21 | ) | (0.21 | ) | (0.19 | ) | (0.22 | ) | (0.22 | ) | (0.17 | ) | (0.12 | ) | 0.00 | |||||||||||||||||
Distributions from Net Realized Capital Gains | 0.00 | 0.00 | 0.00 | (0.53 | ) | (0.54 | ) | (0.11 | ) | (0.01 | ) | 0.00 | ||||||||||||||||||||
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Total Distributions | (0.21 | ) | (0.21 | ) | (0.19 | ) | (0.75 | ) | (0.76 | ) | (0.28 | ) | (0.13 | ) | 0.00 | |||||||||||||||||
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Net Asset Value — End of Period | $ | 10.22 | $ | 10.61 | $ | 8.51 | $ | 6.88 | $ | 10.37 | $ | 13.14 | $ | 11.05 | $ | 10.10 | ||||||||||||||||
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Total Return | (1.63% | )2 | 27.30% | 26.44% | (26.75% | ) | (15.84% | ) | 21.61% | 10.75% | 1.00% | 2 | ||||||||||||||||||||
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Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s) | $ | 32,868 | $ | 35,644 | $ | 24,937 | $ | 20,719 | $ | 33,519 | $ | 43,188 | $ | 25,451 | $ | 8,412 | ||||||||||||||||
Ratio of Expenses to Average Net Assets |
| |||||||||||||||||||||||||||||||
Before fees waived | 1.42% | 3 | 1.25% | 1.30% | 1.43% | 1.25% | 5 | 1.29% | 1.67% | 3.96% | 3 | |||||||||||||||||||||
After fees waived6 | 1.25% | 3 | 1.25% | 4 | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 3 | |||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets |
| |||||||||||||||||||||||||||||||
After fees waived | 2.35% | 3 | 2.04% | 2.27% | 2.73% | 2.02% | 1.64% | 1.80% | 2.11% | 3 | ||||||||||||||||||||||
Portfolio Turnover Rate | 20% | 2 | 29% | 63% | 49% | 62% | 37% | 60% | 25% | 2 |
+ | The Fund commenced investment operations on January 31, 2005. |
1 | Per share net investment income has been calculated using the average daily shares method. |
2 | Not Annualized. |
3 | Annualized. |
4 | Includes fees waived, which were less than 0.01%. |
5 | The Advisor recouped $4,849 during the fiscal year ended June 30, 2008, representing previously reimbursed expenses. Had such payment not been made, the expense ratio would have been 1.24%. |
6 | See note 2 to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
22
Meridian Growth Fund
Financial Highlights
Selected data for each share of capital stock outstanding throughout each period
For the Six Months Ended December 31, 2011 (Unaudited) | For the Fiscal Year Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value — Beginning of Period | $ | 47.61 | $ | 33.94 | $ | 27.89 | $ | 33.60 | $ | 42.74 | $ | 38.54 | $ | 35.77 | $ | 35.38 | $ | 27.24 | $ | 28.10 | $ | 31.30 | |||||||||||||||||||||||||||||||||
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Income (Loss) from Investment Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss) | 0.04 | 1 | 0.08 | 1 | 0.08 | 1 | 0.15 | 1 | 0.05 | 1 | 0.04 | (0.01 | ) | (0.07 | ) | (0.04 | ) | (0.08 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||
Net Gains (Losses) on Investments (both realized | (2.68 | ) | 13.67 | 6.11 | (4.68 | ) | (5.56 | ) | 7.29 | 3.58 | 1.02 | 9.10 | (0.11 | ) | (0.24 | ) | |||||||||||||||||||||||||||||||||||||||
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Total From Investment Operations | (2.64 | ) | 13.75 | 6.19 | (4.53 | ) | (5.51 | ) | 7.33 | 3.57 | 0.95 | 9.06 | (0.19 | ) | (0.36 | ) | |||||||||||||||||||||||||||||||||||||||
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Less Distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions from Net Investment Income | (0.07 | ) | (0.07 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.01 | ) | 0.00 | 0.00 | 0.00 | (0.06 | ) | 0.00 | |||||||||||||||||||||||||||||||||||||
Distributions from Net Realized Capital Gains | (3.27 | ) | (0.01 | ) | 0.00 | (1.09 | ) | (3.58 | ) | (3.12 | ) | (0.80 | ) | (0.56 | ) | (0.92 | ) | (0.61 | ) | (2.84 | ) | ||||||||||||||||||||||||||||||||||
Distributions from Paid in Capital Distribution | 0.00 | 0.00 | (0.02 | ) | (0.00 | )2 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
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Total Distributions | (3.34 | ) | (0.08 | ) | (0.14 | ) | (1.18 | ) | (3.63 | ) | (3.13 | ) | (0.80 | ) | (0.56 | ) | (0.92 | ) | (0.67 | ) | (2.84 | ) | |||||||||||||||||||||||||||||||||
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Net Asset Value — End of Period | $ | 41.63 | $ | 47.61 | $ | 33.94 | $ | 27.89 | $ | 33.60 | $ | 42.74 | $ | 38.54 | $ | 35.77 | $ | 35.38 | $ | 27.24 | $ | 28.10 | |||||||||||||||||||||||||||||||||
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Total Return | (5.35% | )3 | 40.51% | 22.18% | (13.01% | ) | (13.80% | ) | 19.69% | 10.08% | 2.65% | 33.65% | (0.20% | ) | 0.42% | ||||||||||||||||||||||||||||||||||||||||
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Ratios/Supplemental Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s) | $ | 2,450,027 | $ | 2,615,082 | $ | 1,438,266 | $ | 1,197,656 | $ | 1,516,015 | $ | 2,066,750 | $ | 1,689,374 | $ | 1,693,564 | $ | 1,273,302 | $ | 448,393 | $ | 310,659 | |||||||||||||||||||||||||||||||||
Ratio of Expenses to Average Net Assets | 0.83% | 4 | 0.81% | 0.84% | 0.86% | 0.84% | 0.84% | 0.85% | 0.86% | 0.88% | 0.95% | 1.02% | |||||||||||||||||||||||||||||||||||||||||||
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.21% | 4 | 0.18% | 0.24% | 0.52% | 0.13% | 0.11% | (0.03% | ) | (0.21% | ) | (0.21% | ) | (0.47% | ) | (0.62% | ) | ||||||||||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 12% | 3 | 26% | 37% | 35% | 39% | 40% | 29% | 32% | 19% | 27% | 26% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Distribution includes a return of capital that rounds to less than $.01 per share. |
3 | Not Annualized. |
4 | Annualized. |
The accompanying notes are an integral part of the financial statements.
23
Meridian Value Fund
Financial Highlights
Selected data for each share of capital stock outstanding throughout each period
For the Six Months Ended December 31, 2011 (Unaudited) | For the Fiscal Year Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||||||||||||||||||
Net Asset Value — Beginning of Period | $ | 29.59 | $ | 22.80 | $ | 20.53 | $ | 29.43 | $ | 38.79 | $ | 36.14 | $ | 38.11 | $ | 40.35 | $ | 31.65 | $ | 30.34 | $ | 30.98 | ||||||||||||||||||||||
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Income (Loss) from Investment Operations | ||||||||||||||||||||||||||||||||||||||||||||
Net Investment Income (Loss) | 0.05 | 1 | 0.10 | 1 | 0.07 | 1 | 0.22 | 1 | 0.15 | 1 | 0.41 | 0.18 | 0.19 | 0.00 | (0.03 | ) | (0.05 | ) | ||||||||||||||||||||||||||
Net Gains (Losses) on Investments (both realized and unrealized) | (1.43 | ) | 6.77 | 2.45 | (7.80 | ) | (3.12 | ) | 7.74 | 2.45 | 2.96 | 8.70 | 1.34 | (0.51 | ) | |||||||||||||||||||||||||||||
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Total From Investment Operations. | (1.38 | ) | 6.87 | 2.52 | (7.58 | ) | (2.97 | ) | 8.15 | 2.63 | 3.15 | 8.70 | 1.31 | (0.56 | ) | |||||||||||||||||||||||||||||
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Less Distributions | ||||||||||||||||||||||||||||||||||||||||||||
Distributions from Net Investment Income . | (0.13 | ) | (0.08 | ) | (0.25 | ) | 0.00 | (0.35 | ) | (0.41 | ) | (0.32 | ) | (0.28 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||
Distributions from Net Realized Capital Gains | 0.00 | 0.00 | 0.00 | (1.32 | ) | (6.04 | ) | (5.09 | ) | (4.28 | ) | (5.11 | ) | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||||
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Total Distributions | (0.13 | ) | (0.08 | ) | (0.25 | ) | (1.32 | ) | (6.39 | ) | (5.50 | ) | (4.60 | ) | (5.39 | ) | 0.00 | 0.00 | (0.08 | ) | ||||||||||||||||||||||||
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Net Asset Value — End of Period | $ | 28.08 | $ | 29.59 | $ | 22.80 | $ | 20.53 | $ | 29.43 | $ | 38.79 | $ | 36.14 | $ | 38.11 | $ | 40.35 | $ | 31.65 | $ | 30.34 | ||||||||||||||||||||||
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Total Return | (4.66% | )2 | 30.13% | 12.20% | (25.72% | ) | (8.82% | ) | 23.90% | 7.35% | 8.00% | 27.49% | 4.32% | (1.78% | ) | |||||||||||||||||||||||||||||
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Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net Assets, End of Period (000’s) | $ | 721,036 | $ | 869,312 | $ | 802,936 | $ | 831,572 | $ | 1,319,186 | $ | 1,819,440 | $ | 1,686,874 | $ | 2,271,478 | $ | 2,226,590 | $ | 1,456,552 | $ | 1,297,207 | ||||||||||||||||||||||
Ratio of Expenses to Average Net Assets | 1.14% | 3 | 1.09% | 1.09% | 1.12% | 1.09% | 1.08% | 1.09% | 1.08% | 1.09% | 1.11% | 1.12% | ||||||||||||||||||||||||||||||||
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.38% | 3 | 0.37% | 0.27% | 0.97% | 0.44% | 0.59% | 0.49% | 0.48% | 0.01% | (0.12% | ) | (0.22% | ) | ||||||||||||||||||||||||||||||
Portfolio Turnover Rate | 10% | 2 | 38% | 45% | 87% | 61% | 75% | 58% | 59% | 81% | 60% | 54% |
1 | Per share net investment income (loss) has been calculated using the average daily shares method. |
2 | Not Annualized. |
3 | Annualized. |
The accompanying notes are an integral part of the financial statements.
24
Meridian Fund, Inc.
Notes to Financial Statements
For the Six Months Ended December 31, 2011 (Unaudited)
1. | Organization and Significant Accounting Policies: Meridian Fund, Inc. (the “Meridian Funds”) is comprised of the Meridian Equity Income Fund (the “Equity Income Fund”), the Meridian Growth Fund (the “Growth Fund”) and the Meridian Value Fund (the “Value Fund”). The Equity Income Fund, the Growth Fund and the Value Fund (each a “Fund” and collectively, the “Funds”) are registered under the Investment Company Act of 1940, as no-load, diversified, open-end management investment companies. The Equity Income Fund began operations and was registered on January 31, 2005. The Growth Fund began operations and was registered on August 1, 1984. The Value Fund began operations on February 10, 1994 and was registered on February 7, 1994. |
The primary investment objective of the Equity Income Fund is to seek long-term growth of capital along with income as a component of total return.
The primary investment objective of the Growth Fund is to seek long-term growth of capital.
The primary investment objective of the Value Fund is to seek long-term growth of capital.
The following is a summary of significant accounting policies for all of the Funds:
a. | Investment Valuations: Marketable securities are valued at the closing price or last sales price on the principal exchange or market on which they are traded; or, if there were no sales that day, at the last reported bid price. Securities and other assets for which reliable market quotations are not readily available or for which a significant event has occurred since the time of the most recent market quotation, will be valued at their fair value as determined by Aster Investment Management Company, Inc. (the “Adviser”) under the guidelines established by, and under the general supervision and responsibility of, the Funds’ Board of Directors (the “Board”). Short-term debt securities with original or remaining maturities in excess of 60 days are valued at the mean of their quoted bid and asked prices. Short-term debt securities with 60 days or less to maturity are valued at amortized cost which approximates fair market value. |
b. | Federal Income Taxes: It is the Funds’ policy to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute all of their taxable income to their shareholders; therefore, no federal income tax provision is required. |
c. | Security Transactions: Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses on security transactions are determined on the basis of specific identification for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. |
d. | Cash and Cash Equivalents: All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. Available funds are automatically swept into a Cash Reserve account, which preserves capital with a consistently competitive rate of return. Interest accrues daily and is credited by the third business day of the following month. |
e. | Expenses: Expenses arising in connection with a Fund are charged directly to that Fund. Expenses common to the Funds are generally allocated to each Fund in proportion to their relative net assets. |
25
Meridian Fund, Inc.
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2011 (Unaudited)
f. | Use of Estimates: The preparation of financial statements in accordance with accounting principals generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and revenue and expenses at the date of the financial statements. Actual amounts could differ from those estimates. |
g. | Distributions to Shareholders: The Funds record distributions to shareholders on the ex-dividend date. The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. |
Distributions which exceed net investment income and net realized capital gains are reported as distributions in excess of net investment income or distributions in excess of net realized capital gains for financial reporting purposes but not for tax purposes. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital.
h. | Guarantees and Indemnification: Under the Funds’ organizational documents, its Officers and Directors are indemnified against certain liability arising out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote. |
i. | Fair Value Measurements: As described in Note 1.a. above, the Funds utilize various methods to determine and measure the fair value of investment securities on a recurring basis. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: |
Level 1 - quoted prices in active markets for identical securities;
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
Level 3 - significant unobservable inputs (including the Fund’s determinations as to the fair value of investments).
26
Meridian Fund, Inc.
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2011 (Unaudited)
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The summary of inputs used to value the Funds’ securities as of December 31, 2011 is as follows:
Valuation Inputs | Equity Income Fund | Growth Fund | Value Fund | |||||||||
Level 1 - Quoted Prices* | $ | 31,125,338 | $ | 2,317,593,777 | $ | 684,859,820 | ||||||
Level 2 - Other Significant Observable Inputs** | — | 99,996,850 | 11,999,622 | |||||||||
Level 3 - Significant Unobservable Inputs | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total Market Value of Investments | $ | 31,125,338 | $ | 2,417,590,627 | $ | 696,859,442 | ||||||
|
|
|
|
|
|
* | Level 1 investments are comprised of common stock with industry classifications as defined on the Schedule of Investments. |
** | Level 2 investments are limited to U.S. Treasury Securities. |
During the six months ended December 31, 2011 there were no reportable transfers between levels requiring disclosure in conformity with Financial Accounting Standards Board Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about Fair Value Measurements.”
In May 2011 the Financial Accounting Standards Board issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”)”. ASU No. 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-04 and its impact on the financial statements.
2. | Related Parties: The Funds have entered into management agreements with the Adviser. Certain Officers and/or Directors of the Funds are also Officers and/or Directors of the Adviser. Beneficial ownership in the Funds by Richard F. Aster, Jr., President, as of December 31, 2011 were as follows: |
Equity Income Fund | 71.52 | % | ||
Growth Fund | 0.98 | % | ||
Value Fund | 2.89 | % |
The Adviser receives from the Equity Income Fund, as compensation for its services, an annual fee of 1% of the first $10,000,000 of the Equity Income Fund’s net assets, 0.90% of the next $20,000,000 of the Equity Income Fund’s net assets, 0.80% of the next $20,000,000 of the Equity Income Fund’s net assets and 0.70% of the Equity Income Fund’s net assets in excess of $50,000,000. The fee is paid monthly in arrears and calculated based on that month’s daily average net assets.
27
Meridian Fund, Inc.
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2011 (Unaudited)
The Adviser receives from the Growth Fund, as compensation for its services, an annual fee of 1% of the first $50,000,000 of the Growth Fund’s net assets and 0.75% of the Growth Fund’s net assets in excess of $50,000,000. The fee is paid monthly in arrears and calculated based on that month’s daily average net assets.
The Adviser receives from the Value Fund, as compensation for its services, an annual fee of 1% of the Value Fund’s net assets. The fee is paid monthly in arrears and calculated based on that month’s daily average net assets.
The Adviser voluntarily agreed to waive its fee and reimburse expenses, to the extent that total annual operating expenses for the Equity Income Fund exceeds 1.25%. The Investment Adviser has voluntarily agreed to limit the operating expenses of the Growth and Value Funds to 2.50%. With respect to these limits, the Adviser waived fees in the amount of $27,959 for the Equity Income Fund but did not waive fees for the Growth and Value Funds, during the six months ended December 31, 2011.
For a period not to exceed three years from the date on which a waiver or reimbursement of expenses in excess of the expense limitation is made by the Adviser, the Equity Income Fund will carry forward, and may repay the Adviser such amounts; provided the Fund is able to effect such reimbursement and maintain the expense limitation.
At December 31, 2011, the balance of carried forward recoupable expenses along with the year of expiration for the Equity Income Fund was:
Amount | Expiration | |||
$44,638 | 2012 | |||
12,855 | 2013 | |||
1,193 | 2014 | |||
27,959 | 2015 |
Subject to the approval of the Board, the Fund will repay the Adviser the amount of its reimbursement for the Equity Income Fund for up to three years following the reimbursement to the extent the Equity Income Fund’s expenses drop below 1.25%, after giving effect to repayment by the Fund. Either the Fund or the Adviser can modify or terminate this arrangement at any time.
28
Meridian Fund, Inc.
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2011 (Unaudited)
3. | Capital Shares Transactions: Transactions in capital shares for the six months ended December 31, 2011 and the fiscal year ended June 30, 2011 were as follows: |
Equity Income Fund | ||||||||
December 31, | June 30, | |||||||
2011 | 2011 | |||||||
Increase in Fund shares: | ||||||||
Shares sold | 48,265 | 430,560 | ||||||
Shares issued from reinvestment of distributions | 66,844 | 62,694 | ||||||
|
|
|
| |||||
115,109 | 493,254 | |||||||
Shares redeemed | (256,281 | ) | (64,601 | ) | ||||
|
|
|
| |||||
Net increase (decrease) | (141,172 | ) | 428,653 | |||||
|
|
|
| |||||
Growth Fund | ||||||||
December 31, | June 30, | |||||||
2011 | 2011 | |||||||
Increase in Fund shares: | ||||||||
Shares sold | 6,772,874 | 21,278,458 | ||||||
Shares issued from reinvestment of distributions | 4,380,978 | 72,106 | ||||||
|
|
|
| |||||
11,153,852 | 21,350,564 | |||||||
Shares redeemed | (7,232,717 | ) | (8,799,381 | ) | ||||
|
|
|
| |||||
Net increase | 3,921,135 | 12,551,183 | ||||||
|
|
|
| |||||
Value Fund | ||||||||
December 31, | June 30, | |||||||
2011 | 2011 | |||||||
Increase in Fund shares: | ||||||||
Shares sold | 319,094 | 1,509,297 | ||||||
Shares issued from reinvestment of distributions | 117,473 | 86,096 | ||||||
|
|
|
| |||||
436,567 | 1,595,393 | |||||||
Shares redeemed | (4,139,678 | ) | (7,430,764 | ) | ||||
|
|
|
| |||||
Net decrease | (3,703,111 | ) | (5,835,371 | ) | ||||
|
|
|
|
29
Meridian Fund, Inc.
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2011 (Unaudited)
4. | Compensation of Directors and Officers: Directors and Officers of the Funds who are Directors and/or Officers of the Adviser receive no compensation from the Funds. For the six months ended December 31, 2011, Directors of the Funds who are not interested persons, as defined in the Investment Company Act of 1940, receive compensation in the amount of $13,000 per year, to be paid after the annual October meeting of the Board, and that, upon the election of each Independent Director, a portion of such compensation could be invested in any of the Meridian Funds, at each Independent Director’s discretion. |
5. | Investment Transactions: The cost of investments purchased and the proceeds from sales of investments, excluding short-term securities and U.S. government obligations, for the six months ended December 31, 2011, were as follows: |
Purchases | Proceeds from Sales | |||||||
Equity Income Fund | $ | 6,272,667 | $ | 7,862,335 | ||||
Growth Fund | 263,306,126 | 280,310,469 | ||||||
Value Fund | 69,895,189 | 167,645,949 |
6. | Distribution Information: Income and long-term capital gains distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax character of distributions made during the fiscal year ended June 30, 2011 is as follows: |
2011 Taxable Distributions | ||||||||||||
Ordinary Income | Net Long-Term Capital Gain | Total Distributions | ||||||||||
Equity Income Fund | $ | 617,600 | $ | — | $ | 617,600 | ||||||
Growth Fund | 3,004,679 | 345,185 | 3,349,864 | |||||||||
Value Fund | 2,508,893 | — | 2,508,893 |
7. | Federal Income Taxes Information: Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (tax years ended June 30, 2008-2011), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. |
The aggregate cost of investments, unrealized appreciation and depreciation which are book figures that approximate federal income tax basis, at December 31, 2011 were as follows:
Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation | |||||||||||||
Equity Income Fund | $ | 29,153,185 | $ | 3,091,524 | $ | (1,119,371 | ) | $ | 1,972,153 | |||||||
Growth Fund | 1,976,273,178 | 472,338,409 | (31,020,960 | ) | 441,317,449 | |||||||||||
Value Fund | 583,773,595 | 142,194,522 | (29,108,675 | ) | 113,085,847 |
30
Meridian Fund, Inc.
Notes to Financial Statements (continued)
For the Six Months Ended December 31, 2011 (Unaudited)
As of June 30, 2011 the Funds had capital loss carry forwards available to offset future realized capital gains through the indicated expiration dates:
Amount | Expires | |||||||
Equity Income Fund | $ | 5,605,965 | 2018 | |||||
Value Fund | 225,567,072 | 2018 |
Under the Regulated Investment Company Modernization Act of 2010, the eight-year limit on the carry forward and use of capital losses was eliminated and capital losses incurred by the Funds after June 30, 2011 will not be subject to expiration. In addition, losses incurred after June 30, 2011 will retain their character as either a short-term or long-term capital loss on the first day of the next taxable year and must be utilized prior to the losses incurred in pre-enactment taxable years.
8. | Subsequent Events: Management evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and notes the following item: |
Management is deeply saddened to announce the untimely passing on February 16, 2012 of Richard F. Aster, Jr., President of the Adviser and President, Director and portfolio manager of the Funds. The following members of the investment management team at the Adviser have assumed the management responsibilities for the Funds indicated below. Each of these individuals previously assisted in the management of the Funds.
Fund | Co-Portfolio Managers | |
Meridian Equity Income Fund® | James England James O’Connor | |
Meridian Growth Fund® | James England William Tao | |
Meridian Value Fund® | James England James O’Connor |
Messrs. England, O’Connor and Tao have served as key members of the investment management team at the Adviser since 2001, 2004 and 2007, respectively. The background and experiences of each of the Portfolio Managers are described in the Funds’ Prospectus and Statement of Additional Information, as supplemented.
31
Meridian Fund, Inc.
Additional Information
For the Six Months Ended December 31, 2011 (Unaudited)
1. | Proxy Voting Record and Proxy Voting Policies and Procedures: A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities along with information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (i) without charge, upon request, by calling (800) 446-6662; (ii) on our website at http://www.meridianfund.com; and (iii) on the Securities and Exchange Commission (“SEC”) website at http://www.sec.gov. |
2. | Information on Form N-Q: The Company files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Company’s Form N-Q is available on the SEC’s website at http://www.sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) 732-0330. |
32
Disclosure Regarding Approval of Investment Advisory
Agreements (unaudited)
The Directors of the Funds, including a majority of the Independent Directors, unanimously approved the continuance of the Investment Advisory Agreements between the Meridian Growth Fund, the Meridian Value Fund and the Meridian Equity Income Fund and the Adviser at a meeting held on October 5, 2011.
In preparation for the meeting, the Directors received and evaluated information supplied by the Adviser in response to a request letter addressed to Fund Management by counsel, at the Board of Directors’ request, which identified items that should be provided in order for the Directors to gain reasonable assurance that they have sufficiently considered all relevant and required information related to approval of the Advisory Agreements. The Directors examined and considered, among other items, performance and expense information of other retail and institutional investment companies with similar objectives, derived from data compiled by an independent third-party provider, as well as other information received from the Adviser periodically throughout the course of the year. The Independent Directors of the Funds also met in a private session at which no representatives of the Adviser were present prior to voting to approve the Advisory Agreements with respect to each of the Funds. In the process of making their determinations, the Directors considered factors they believed materially related to the selection of the Adviser, the approval of the fee structures and amounts paid under the Advisory Agreements. The Directors based their determinations on a comprehensive consideration of all information presented to, and/or requested by, them and such determinations were not disproportionately influenced by any single controlling factor. The Directors evaluated all information available to them for each of the series Funds, and their determinations were made separately in respect of each Fund. Some of the factors considered are discussed in more detail below.
The Directors considered the nature, extent and quality of the investment research and portfolio management functions of the Adviser and the resources dedicated by the Adviser and the resources expected to continue to be dedicated in performing services for the Funds. The Directors also considered the respective investment strategies of the Funds and noted favorably the Adviser’s demonstrated ability, over time, to achieve a competitive rate of return for long-term investors. The quality of other services, including the Adviser’s assistance in the coordination of the activities of the Funds relating to other service providers, fund administration and compliance programs also was considered. In addition, the Directors considered the consistency of the Funds’ service quality, in light of their on-going experience as Directors of the Funds. Based on the above factors, together with those referenced below, the Directors concluded that, in all material respects, they were satisfied with the nature, extent and quality of services provided, and expected to be provided, to the Funds under the Advisory Agreements.
At their regular meeting, the Directors reviewed the current and long-term performance of the Funds. The Directors noted that, while the Meridian Value Fund’s one- and three-year performance trailed the performance index comprising all retail and institutional funds within its investment category as determined by an independent third-party provider (“performance universe”) over the longer five- and ten-year periods the Meridian Value Fund outperformed its performance universe. The Directors also
33
Disclosure Regarding Approval of Investment Advisory Agreements (unaudited) (continued)
noted that the Meridian Equity Income Fund and the Meridian Growth Fund outperformed their respective performance universe over each of the applicable one-, three-, five- and ten-year time periods. In addition to the information reviewed by the Directors during their meeting, the Directors received detailed monthly performance reports for the Funds throughout the year. These reports present the Funds’ performance in comparison to both broad market and peer group indices. Based upon their review, the Directors concluded that the Adviser’s management of the Funds’ investment portfolios has resulted in consistently competitive performance overall and, in particular, solid returns for long-term investors.
The Directors considered the direct and indirect costs incurred by the Adviser in providing investment management services for the Funds. In light of the changes in assets under management for each Fund during relevant time periods, the Directors concluded that economies of scale currently being realized do not warrant the implementation of additional breakpoints for any of the Funds. While intending to monitor future growth in Fund assets, and to the extent that economies of scale are realized, the Directors believe that current advisory fee levels reflect an equitable sharing of benefits with shareholders.
The Directors also considered the profits being realized by the Adviser from its relationship with the Funds. The Directors, in exercising their business judgment, with consideration duly given to, among other things, the nature and quality of services provided, the consistently solid long-term performance of the Funds, investment industry practices and comparable funds’ average fee expense, determined using independent third party data, did not deem the profits the Adviser received from providing services to the Funds to be unreasonable. The Directors recognized that it is difficult to make comparisons of profitability from investment advisory contracts. This is because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the type of clients it advises, its business mix, and numerous assumptions regarding allocations and the adviser’s capital and management structure.
The Directors additionally considered certain benefits the Adviser realizes due to its relationship with the Funds. In particular, the Adviser has arrangements under which certain brokers may provide industry research to the Adviser’s portfolio managers through the use of a portion of the brokerage commissions generated from the Adviser’s trading activities on behalf of the Funds. Under this arrangement, the Directors believe that the Funds’ shareholders benefit as well from these research products paid for through broker commissions and soft dollar arrangements.
After an evaluation of the above-described factors, and based on their deliberations and analysis of the information provided and alternatives considered, the Directors, including all of the Independent Directors, unanimously approved the continuance of the Advisory Agreements.
34
MERIDIAN FUND, INC.
This report is submitted for
the information of shareholders of
Meridian Fund, Inc. It is not
authorized for distribution to
prospective investors unless
preceded or accompanied by an
effective prospectus.
Officers and Directors
JOHN EMRICH
MICHAEL S. ERICKSON
JAMES B. GLAVIN
RONALD ROTTER
MICHAEL STOLPER
Directors
GREGG B. KEELING
Chief Financial Officer
Treasurer, Secretary and
Chief Compliance Officer
Custodian
THE BANK OF NEW YORK MELLON
New York, New York
Transfer Agent and Disbursing Agent
BNY MELLON INVESTMENT SERVICING (US) INC.
King of Prussia, Pennsylvania
(800) 446-6662
Counsel
GOODWIN PROCTER LLP
Washington, D.C.
Independent Registered Public Accounting Firm
PRICEWATERHOUSECOOPERS LLP
San Francisco, California
MERIDIAN EQUITY INCOME FUND®
MERIDIAN GROWTH FUND®
MERIDIAN VALUE FUND®
SEMI-ANNUAL REPORT
60 E. Sir Francis Drake Blvd.
Wood Island, Suite 306
Larkspur, CA 94939
www.meridianfund.com
Telephone (800) 446-6662
December 31, 2011
Item 2. | Code of Ethics. |
Not applicable.
Item 3. | Audit Committee Financial Expert. |
Not applicable.
Item 4. | Principal Accountant Fees and Services. |
Not applicable.
Item 5. | Audit Committee of Listed registrants. |
Not applicable.
Item 6. | Investments. |
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. | Controls and Procedures. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Exhibits. |
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and 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.
(registrant) Meridian Fund, Inc.® | ||
By (Signature and Title)* | /s/ Gregg B. Keeling | |
Gregg B. Keeling, Acting President, CFO & Treasurer | ||
(principal executive officer and principal financial officer) |
Date March 2, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and 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.
By (Signature and Title)* | /s/ Gregg B. Keeling | |
Gregg B. Keeling, Acting President, CFO & Treasurer | ||
(principal executive officer and principal financial officer) |
Date March 2, 2012
* | Print the name and title of each signing officer under his or her signature. |