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 811-4204
PC&J Preservation Fund
(Exact name of registrant as specified in charter)
120 West Third Street, Suite 300, Dayton, OH 45402-1819
(Address of principal executive offices) (Zip code)
PC&J Service Corp., 120 West Third Street, Suite 300, Dayton, OH
45402-1819
-----
(Name and address of agent for service)
Registrant's telephone number, including area code: 937-223-0600
Date of fiscal year end: December 31
Date of reporting period: June 30, 2003
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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Sec. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
PC&J PRESERVATION FUND
Semi-Annual Report
to Shareholders
June 30, 2003
The PC&J Preservation Fund is a registered investment company under the
Investment Company Act of 1940 and, for your protection, is regulated by the
Securities and Exchange Commission. The enclosed 2003 Semi-Annual Report is for
your information and is provided to you in compliance with ongoing Securities
and Exchange Commission regulations. This report requires no action on your
part. Please give us a call if you have any questions.
_________/s/____
James Johnson
Secretary
________/s/_____
Kathleen Carlson
Treasurer
PC&J PRESERVATION FUND
FINANCIAL HIGHLIGHTS
The information contained in the table below for the years ended December 31,
2002, 2001, 2000, and 1999 have been derived from data contained in financial
statements examined by Deloitte & Touche, independent certified public
accountants. The information for the six months ended June 30, 2003 have been
derived from data contained in the unaudited financial statements but which are
believed to include all adjustments necessary for a fair presentation. Such
information should be read in conjunction with the enclosed financial
statements.
Selected Data for Each Share of Capital 2003 2002 2001 2000 1999
Stock Outstanding Throughout the Period (Unaudited)
NET ASSET VALUE-BEGINNING OF PERIOD $ 11.06 $ 10.96 $ 10.88 $ 10.54 $ 11.37
Income from investment operations:
Net investment income 0.26 0.54 0.62 0.63 0.61
Net realized and unrealized
gain (loss) on securities (0.07) 0.11 0.06 0.35 (0.76)
TOTAL FROM INVESTMENT OPERATIONS 0.19 0.65 0.68 0.98 (0.15)
Less dividends:
From net investment income (0.00) (0.55) (0.60) (0.63) (0.61)
From net realized gain
on investments (0.00) (0.00) (0.00) (0.00) (0.07)
From return of capital (0.01)
TOTAL DIVIDENDS (0.00) (0.55) (0.60) (0.64) (0.68)
NET ASSET VALUE-END OF PERIOD $ 11.25 $ 11.06 $ 10.96 $ 10.88 $ 10.54
TOTAL RETURN 1.72% 5.98% 6.25% 9.35% (1.32%)
RATIOS TO AVERAGE NET ASSETS
Expenses 1.00%* 1.00% 1.00% 1.00% 1.00%
Net investment income 4.65%* 4.64% 5.31% 5.40% 5.37%
Portfolio turnover rate 22.44%* 53.92% 46.56% 35.10% 36.25%
Net assets at end of period (000's) $ 18,148 $18,647 $18,440 $18,839 $19,684
* Annualized
PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 2003
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- --------------------------------------------- -------- --------- --------- ----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS:
Maturity of 1 - 5 years: 1.6%
Federal National Mortgage Assn. Note,
7.500%, due 7-25-07 4.00 290,000 $ 291,178
Maturity of 5 - 10 years: 13.9
Federal Home Loan Bks. Step Up Note,
4.250%, due 12-21-09 6.50 1,600,000 1,632,000
Federal National Mortgage Assn. Note,
7.550%, due 8-04-10 7.00 400,000 402,250
Federal National Mortgage Assn. Note,
0.000%, due 7-19-11 8.00 500,000 489,735
2,523,985
Maturity of 10 - 20 years: 26.2
Federal Home Loan Bks. Step Up Note,
4.000%, due 5-07-15 11.75 750,000 750,000
Federal Home Loan Mortgage Corp.
Step up Note, 3.500%, due 12-05-17 14.50 1,500,000 1,500,000
Federal Home Loan Bks.,
4.250%, due 6-04-18 15.00 2,000,000 2,010,000
Federal Home Loan Bks.,
4.250%, due 7-16-18 15.00 500,000 499,219
4,759,219
----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $7,546,959) 41.7 7,574,382
PREFERRED STOCK:
Seagram Joseph & Sons 0.50 (1) 20,000 515,182
TOTAL PREFERRED STOCK
(Cost $528,561) 2.8 515,182
See notes to financial statements.
PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2003
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- ----------------------------------------- -------- -------- --------- ----------
TAXABLE MUNICIPAL OBLIGATIONS:
Maturity of less than 1 year: 1.4%
Philadelphia, PA Industrial Dev. Taxable
Bonds, 6.488%, due 06-15-04 1.00 248,091 $ 256,680
Maturity of 1 - 5 years: 9.6
Hamilton OH Northern School Districts
Gas Rv, 7.270%, due 08-01-04 1.00 150,000 156,411
Rome, NY Hsg. Dev. Taxable Bonds,
6.500%, due 1-01-05 1.50 55,000 55,323
Cleveland, OH Airport Taxable Bonds,
6.490%, due 1-01-06 2.50 365,000 394,028
Chicago Heights, IL GO Taxable
Bonds, 7.350%, due 12-01-07 4.50 170,000 197,258
Minneapolis, MN Cmty. Dev. Taxable
Bonds, 10.400%, due 12-01-07 4.50 435,000 448,363
Oklahoma City, OK Airport Taxable
Bonds, 6.950%, due 7-01-08 5.00 475,000 495,321
1,746,704
Maturity of 5 - 10 years: 14.1
Dayton, OH Hsg. Improvement Taxable
Bonds, 6.250%, due 11-01-08 5.25 140,000 141,996
Texas State Water Finl. Asst. Taxable
Bonds, 6.550%, due 8-01-09 6.00 400,000 401,296
Dayton, OH Econ. Dev. Taxable
Bonds, 6.380%, due 12-01-09 6.50 500,000 569,495
Baltimore, MD Taxable
Bonds, 8.400%, due 7-01-11 8.00 475,000 479,750
Mississippi State GO Taxable
Bonds, 6.750%, due 11-01-12 9.25 300,000 315,420
Denver, CO School Dist. Taxable Bonds,
6.940%, due 12-15-12 9.50 500,000 578,100
St. Cloud, MN Taxable Bonds,
6.700%, due 02-01-13 9.50 70,000 70,000
2,556,057
See notes to financial statements.
PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS (Continued)
JUNE 30, 2003
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- ----------------------------------------- -------- -------- --------- ----------
Maturity of 10 - 20 years: 17.3%
Dayton, OH Taxable Bonds,
6.500%, due 11-01-13 10.25 250,000 $ 253,115
Sacramento CA Redev. Agency Taxable
Bonds, 6.375%, due 11-01-13 10.25 200,000 219,986
Jackson Cnty., MS GO Taxable Bonds,
8.250%, due 03-01-14 10.75 135,000 146,910
Baltimore, MD Economic Dev. Lease,
9.500%, due 08-01-14 11.00 625,000 640,806
Jackson Cnty., MS GO Taxable Bonds,
8.250%, due 03-01-15 11.75 210,000 228,526
Ohio State Taxable Bonds,
7.600%, due 10-01-16 13.25 750,000 845,925
Palmdale, CA Redev. Taxable Bonds,
7.900%, due 09-01-17 14.25 225,000 265,120
Connecticut St. Dev. Auth. Rev. Taxable
Bonds, 8.750%, due 10-15-19 16.25 500,000 546,120
3,146,508
Maturity of 20 - 30 years: 3.2
Broward Cnty. FL Professional Sports
Fac., 8.110%, due 9-01-28 25.25 500,000 574,375
TOTAL TAXABLE MUNICIPAL
OBLIGATIONS (Cost $8,009,075) 45.6 8,280,324
U.S. CORPORATE OBLIGATIONS:
Maturity of less than 1 year: 7.1
Citigroup Global Markets Holdings Inc.
Notes, 4.000%, due 9-30-03 0.25 250,000 $ 250,085
Lehman Brothers Holdings Inc.
Notes, 7.250%, due 10-15-03 0.25 500,000 508,573
General Motors Corp.
Notes, 7.625%, due 6-15-04 1.00 500,000 524,476
1,283,134
TOTAL U.S. CORPORATE OBLIGATIONS
(Cost $1,271,804) 7.1 1,283,134
See notes to financial statements.
PC&J PRESERVATION FUND
SCHEDULE OF INVESTMENTS (Concluded)
JUNE 30, 2003
(UNAUDITED)
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- ------------------------------------- -------- -------- --------- -----------
TOTAL U.S. GOVERNMENT AND
AGENCY, PREFERRED STOCK,
TAXABLE MUNICIPAL AND
U.S. CORPORATE OBLIGATIONS
(Cost $17,356,399) 97.2% $17,653,022
SHORT-TERM OBLIGATIONS 4.2
First American Treasury Obligation 7,997
Federated Prime Obligations MM Fund 750,000
TOTAL SHORT-TERM OBLIGATIONS
(Cost $757,997) 757,997
TOTAL INVESTMENTS
(Cost $18,114,396) (2) 101.4% $18,411,019
(1) Years to call date
(2) Represents cost for federal income tax and book purposes and differs from
market value by net unrealized appreciation. (See Note D)
See notes to financial statements.
PC&J PRESERVATION FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2003
(UNAUDITED)
ASSETS
Investments in securities, at market value
(Cost basis - $18,114,396) (Notes A& D) $18,411,020
Receivables - Interest 222,157
Receivables - Fund shares sold 29,362
Total assets 18,662,539
LIABILITIES:
Accrued expenses (Note B) (14,827)
Payables - Securities Purchased (499,219)
Total liabilities (514,046)
NET ASSETS $18,148,493
SHARES OUTSTANDING (Unlimited authorization - no par value):
Beginning of year 1,686,211
Net (decrease) (Note C) (73,361)
End of period 1,612,850
NET ASSET VALUE, offering price and redemption price per share $ 11.25
NET ASSETS CONSIST OF:
Paid in capital $17,607,467
Net unrealized appreciation on investments 296,624
Undistributed net income 427,131
Accumulated net realized loss on investments (182,729)
Net Assets $18,148,493
See notes to financial statements.
PC&J PRESERVATION FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003
(UNAUDITED)
INVESTMENT INCOME - Interest (Note A): $ 513,464
EXPENSES (Note B):
Investment advisory fee 45,095
Management fee 45,094
Other 326
Total expenses 90,515
NET INVESTMENT INCOME 422,949
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (Note D):
Change in net realized loss on investments (30,304)
Change in unrealized depreciation of investments (80,562)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (110,866)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 312,083
See notes to financial statements.
PC&J PRESERVATION FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months For the Year
Ended Ended
June 30, 2003 December 31,2002
(Unaudited)
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 422,949 $ 866,249
Change in net realized gain (loss) on investments (30,304) 9,957
Change in unrealized appreciation (depreciation) of investments (80,562) 208,131
Net increase in net assets from operations 312,083 1,084,337
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income 0 (889,996)
Dividends from net realized gain on investments 0 0
Net (decrease) in assets from dividends to shareholders 0 (889,996)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (Note C) (810,978) 13,071
Total increase (decrease) in net assets (498,895) 207,412
NET ASSETS:
Beginning of period 18,647,388 18,439,976
End of period $18,148,493 $18,647,388
See notes to financial statements.
PC&J PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PC&J Preservation Fund (the "Fund") commenced operations on April 30, 1985, as a
"no-load, open-end, diversified" investment company. It is organized as an Ohio
business trust and is registered under the Investment Company Act of 1940. The
investment objective of the Fund is preservation of capital through investment
in fixed-income obligations.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America (GAAP) requires management to
make estimates or assumptions that affect the reported amounts of assets and
liabilities, disclosures of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
(1) Security Valuations - Fixed income securities are generally valued by
using market quotations, or a matrix methodology (including prices furnished by
a pricing service) when the Adviser believes such prices accurately reflect the
fair market value of such securities. The matrix pricing methodology utilizes
yield spreads relating to securities with similar characteristics to determine
prices for normal institutional-size trading units of debt securities without
regard to sale or bid prices. If the Adviser decides through the due diligence
process that the market quotation does not accurately reflect current value or
that prices cannot be readily estimated using the matrix methodology, or when
restricted or illiquid securities are being valued, securities are valued at
fair value as determined in good faith under the direction of the Board of
Trustees of the Fund.
(2) Federal Income Taxes - The Fund has elected to be treated as a regulated
investment company and intends to comply with the requirements under Subchapter
M of the Internal Revenue Code and to distribute all of its net investment
income and net realized gains on security transactions. Accordingly, no
provision for federal income taxes has been made in the accompanying financial
statements. The Fund has a capital loss carry forward of $152,425, which can be
carried forward through 2008.
(3) Other - Security transactions are accounted for on the date the
securities are purchased or sold, (trade date). All premiums and discounts are
amortized or accreted for financial and tax reporting purposes as required by
AICPA financial accounting standards. Realized gains and losses on sales are
determined using the specific lot method. Dividends to shareholders from net
investment income and net realized capital gains are declared and paid annually.
Interest income is accrued daily. Paydown gains and losses on mortgage and
asset-backed securities are presented as interest income.
B. INVESTMENT ADVISORY AGREEMENT AND MANAGEMENT AGREEMENT
The Fund has an investment advisory agreement with Parker Carlson &
Johnson, Inc. (the "Adviser"), wherein the Fund pays the Adviser a monthly
advisory fee, accrued daily, based on an annual rate of one-half of one percent
of the daily net assets of the Fund. Investment advisory fees were $45,095 for
the six months ended June 30, 2003.
The Fund has a management agreement with PC&J Service Corp., (the "Service
Corp."), which is wholly owned by the shareholders of the Adviser. The Fund pays
Service Corp. for the overall management of the Fund's business affairs,
exclusive of the services provided by the Adviser, and functions as the Fund's
transfer and dividend disbursing agent. Service Corp. pays all expenses of the
Fund (with certain exclusions) and is entitled to a monthly fee, accrued daily,
based on an annual rate of one-half of one percent of the daily net assets of
the Fund. Management fees were $45,094 for the six months ended June 30, 2003.
Certain officers and trustees of the Fund are officers and directors, or both,
of the Adviser and of Service Corp.
PC&J PRESERVATION FUND
NOTES TO FINANCIAL STATEMENTS - (Concluded)
(UNAUDITED)
C. CAPITAL SHARE TRANSACTIONS
For the Six Months Ending For the Year Ending
June 30, 2003 December 31, 2002
(Unaudited) (Unaudited)
Shares Dollars Shares Dollars
Subscriptions 214,557 $ 2,390,323 142,241 $ 1,598,350
Reinvestment of dividends 0 0 80,542 889,996
214,557 2,390,323 222,783 2,488,346
--------- ------------ --------- ------------
Redemptions (287,918) (3,201,301) (218,922) (2,475,275)
Net increase (decrease) (73,361) $ (810,978) 3,861 $ 13,071
D. INVESTMENT TRANSACTIONS
Securities purchased and sold (excluding short-term obligations and long-term
U.S. Government securities) for the six months ended June 30, 2003, aggregated
$686,671 and $1,847,650, respectively. Purchases and sales of long-term U.S.
Government Securities for the six months ended June 30, 2003, aggregated
$3,248,281 and $2,000,000, respectively.
At June 30, 2003, gross unrealized appreciation on investments was $395,169 and
gross unrealized depreciation on investments was $98,545 for a net unrealized
appreciation of $296,624 for financial reporting and federal income tax
purposes.
E. FEDERAL TAX DISCLOSURE
Tax Character of Distributions Paid
For the Year Ended December 31, 2002 For the Year Ended December 31, 2001
------------------------------------ ------------------------------------
Ordinary Income Capital Gains Total Distribution Ordinary Income Capital Gains Total Distribution
889,996 $ 0 $ 889,996 $ 961,012 $ 0 $ 961,012
Tax Basis of Distributable Earnings
As of December 31, 2002
Undistributed
Ordinary Undistributed Unrealized
Income Capital Gains Appreciation
4,027 $ 0 $ 377,186
The difference between book basis and tax basis undistributed ordinary income is
attributable to the classification of gains (losses) on paydowns.
PC&J PRESERVATION FUND
FUND TRUSTEES DISCLOSURE
(UNAUDITED)
The responsibility for management of the Fund is vested in its Board of
Trustees, which, among other things, is empowered by the Fund's Declaration of
Trust to elect officers of the Fund and contract with and provide for the
compensation of agents, consultants and other professionals to assist and advise
in such management.
The following table provides information regarding each Trustee who is not an
"interested person" of the Trust, as defined in the Investment Company Act of
1940.
NUMBER OF PORTFOLIOS
POSITION(S) IN LENGTH OF IN FUND COMPLEX**
NAME, AGE AND ADDRESS FUND COMPLEX** TIME SERVED OVERSEEN BY TRUSTEE
- ------------------------------ -------------- ------------- --------------------
Donald N. Lorenz
26 Misty Morning Drive
Hilton Head Island, S.C. 29926 Trustee since
Year of Birth: 1935 Trustee 1987 2
- ------------------------------ -------------- ------------- --------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------------------ -----------------------------------
Retired since December 1998; from December 1980 to
December 1998, Vice President-Finance and Treasurer,
Price Brothers Company (concrete pipe products) None
- ------------------------------------------------------ -----------------------------------
NUMBER OF PORTFOLIOS
POSITION(S) IN LENGTH OF IN FUND COMPLEX**
NAME, AGE AND ADDRESS FUND COMPLEX** TIME SERVED OVERSEEN BY TRUSTEE
- ----------------------- -------------- ------------------ --------------------
Robert S. Neff
4466 Blairgowrie Circle
Kettering, Ohio 45429
Year of Birth: 1931 Trustee Trustee since 2003 2
- ----------------------- -------------- ------------------ --------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD BY TRUSTEE
- -------------------------------------------------------- -----------------------------------
Since June 2001, Consultant to Neff Packaging Solutions
Inc.; from June 1980 to June 2001, Chairman and CEO of
Neff Packaging Solutions Inc. (paper container
manufacturer) None
- -------------------------------------------------------- -----------------------------------
NUMBER OF PORTFOLIOS
POSITION(S) IN LENGTH OF IN FUND COMPLEX**
NAME, AGE AND ADDRESS FUND COMPLEX** TIME SERVED OVERSEEN BY TRUSTEE
- --------------------- -------------- ------------- --------------------
Laura B. Pannier
629 Woodbourne Trail
Dayton, Ohio 45459 Trustee since
Year of Birth: 1954 Trustee 2003 2
- --------------------- -------------- ------------- --------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD BY TRUSTEE
- -------------------------------------------------- -----------------------------------
Not presently employed; from May 1988 to May 1997,
partner with Deloitte & Touche LLP None
- -------------------------------------------------- -----------------------------------
PC&J PRESERVATION FUND
FUND TRUSTEES DISCLOSURE (Concluded)
(UNAUDITED)
The following table provides information regarding each Trustee who is an
"interested person" of the Trust, as defined in the Investment Company Act of
1940, and each officer of the Trust.
NUMBER OF PORTFOLIOS
POSITION(S) HELD LENGTH OF IN FUND COMPLEX**
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED OVERSEEN BY TRUSTEE
- --------------------- ---------------- ------------- --------------------
Leslie O. Parker III*
300 Old Post Office
120 West Third Street President President and
Dayton, Ohio 45402 and Trustee since
Year of Birth: 1940 Trustee 1985 2
- --------------------- ---------------- ------------- --------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ----------------------------------------- -----------------------------------
Chairman of Adviser since September 1982. None
- ----------------------------------------- -----------------------------------
NUMBER OF PORTFOLIOS
POSITION(S) HELD LENGTH OF IN FUND COMPLEX**
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED OVERSEEN BY TRUSTEE
- ------------------------- ---------------- ------------- --------------------
Kathleen A. Carlson, CFA*
300 Old Post Office
120 West Third Street Treasurer and
Dayton, Ohio 45402 Treasurer and Trustee since
Year of Birth: 1955 Trustee 1985 2
- ------------------------- ---------------- ------------- --------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ----------------------------------------- -----------------------------------
President and Treasurer of Adviser since
September 1982 None
- ----------------------------------------- -----------------------------------
NUMBER OF PORTFOLIOS
POSITION(S) HELD LENGTH OF IN FUND COMPLEX**
NAME, AGE AND ADDRESS WITH TRUST TIME SERVED OVERSEEN BY TRUSTEE
- ---------------------- ---------------- ------------- --------------------
James M. Johnson, CFA*
300 Old Post Office
120 West Third Street Secretary and
Dayton, Ohio 45402 Secretary and Trustee since
Year of Birth: 1952 Trustee 1985 2
- ---------------------- ---------------- ------------- --------------------
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS OTHER DIRECTORSHIPS HELD BY TRUSTEE
- ------------------------------------------ -----------------------------------
Secretary of Adviser since September 1982. None
- ------------------------------------------ -----------------------------------
* Mr. Parker, Ms. Carlson and Mr. Johnson are "interested persons" of the Fund
because they are officers of the Fund and officers and shareholders of the
Adviser, and own in the aggregate a controlling interest in the Adviser and PC&J
Service Corp., the Fund's transfer agent.
**As of December 31, 2002, the term "Fund Complex" refers to the PC&J
Performance Fund and the PC&J Preservation Fund.
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 COMPANIES. Not applicable.
ITEM 6. RESERVED.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END FUNDS.
Not applicable.
ITEM 8. RESERVED.
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of August 19, 2003, the disclosure controls and procedures are
reasonably designed to ensure that the information required in filings on Forms
N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no significant changes in the registrant's internal control
over financial reporting that occurred during the registrant's last fiscal
half-year that have materially affected, or are reasonably likely to materially
affect the registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed
herewith.
(b) Certification required by Item 10(b) of Form N-CSR is filed herewith.
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.
PC&J Preservation Fund
By_______________/s/_________________
Kathleen A. Carlson, Treasurer
Date: August 21, 2003
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__________________/s/_________________
Leslie O. Parker III, President
Date: August 21, 2003
By_______________/s/___________________
Kathleen A. Carlson, Treasurer
Date: August 21, 2003
Exhibit 99.CERT
CERTIFICATIONS
I, Leslie O. Parker III, certify that:
1. I have reviewed this report on Form N-CSR of PC&J Preservation Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation;
c) disclosed in this report any change in the registrant's internal control
over financial reporting that occurred during the registrant's most recent
fiscal half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
Date: August 21, 2003
___________/s/__________
Leslie O. Parker III
President
I, Kathleen A. Carlson, certify that:
1. I have reviewed this report on Form N-CSR of PC&J Preservation Fund;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation;
c) disclosed in this report any change in the registrant's internal control
over financial reporting that occurred during the registrant's most recent
fiscal half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
Date:August 21, 2003
___________/s/________
Kathleen A. Carlson
Treasurer
EX-99.906CERT
CERTIFICATION
Leslie O. Parker, Chief Executive Officer, and Kathleen Carlson, Chief
Financial Officer of PC&J Preservation Fund (the "Registrant"), each certify to
the best of his or her knowledge that:
1. The Registrant's periodic report on Form N-CSR for the period ended June
30, 2003 (the "Form N-CSR") fully complies with the requirements of Sections
15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Form N-CSR fairly presents, in all
material respects, the financial condition and results of operations of the
Registrant.
Chief Executive Officer Chief Financial Officer
PC&J Preservation Fund PC&J Preservation Fund
_________/s/____________ ___________/s/_________
Leslie O. Parker III Kathleen A. Carlson
Date:August 21, 2003 Date: August 21, 2003
A signed original of this written statement required by Section 906 of the
Sarbanes-Oxley Act of 2002 has been provided to PC&J Preservation Fund and will
be retained by PC&J Preservation Fund and furnished to the Securities and
Exchange Commission (the "Commission") or its staff upon request.
This certification is being furnished to the Commission solely pursuant to 18
U.S.C. Sec. 1350 and is not being filed as part of the Form N-CSR filed with the
Commission.