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
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PC&J Preservation Fund
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(Exact name of registrant as specified in charter)
120 West Third Street, Suite 300, Dayton, Ohio 45402-1819
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(Address of principal executive offices) (Zip code)
PC&J Service Corp.,120 West Third Street, Suite 300, Dayton, OH 45402-1819
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(Name and address of agent for service)
Registrant's telephone number, including area code: 937-223-0600
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Date of fiscal year end: 12-31-
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Date of reporting period: 12-31-2003
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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. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
PC&J PRESERVATION FUND
ANNUAL REVIEW
Unaudited
INTRODUCTION
The PC&J Preservation Fund is a registered investment company under the
Investment Company Act of 1940. The enclosed 2003 Annual Report is for your
information and is provided to you in compliance with ongoing Securities and
Exchange Commission regulations. Please give us a call if you have any
questions.
MANAGEMENT REVIEW AND ANALYSIS
Priming the pump worked. Eleven interest rate cuts, increased government
spending and two rounds of tax cuts got the economy rolling in the third quarter
of 2003. Statistically speaking, the recession ended in 2001 because consumer
and government spending kept the growth rate in gross domestic spending
positive. Realistically speaking, it wasn't until the third quarter's pick up
in capital spending and manufacturing activity that economists could comfortably
proclaim a recovery. For much of the year we worried about the consumer
sector pulling in their reins before the business sector got out of the gate.
An unexpected drop in interest rates in the summer produced another round of
mortgage refinancing that gave consumers some additional purchasing power. This
allowed them to hang in there, while businesses regrouped and finally began to
release orders.
Average Annual Total Returns
1 Yr. 5 Yrs 10 Yrs
Preservation Fund 2.63% 4.51% 5.30%
Lehman Index 4.67% 6.58% 6.87%
Treasury Bills (3mth) 1.01% 3.31% 4.21%
Looking at the beginning and ending points for the ten-year treasury yield you'd
think it was a boring year for bond investors. On the contrary, interest rates
began the year at levels not seen in 40 years and managed to go lower as
investors worried we were not going to see the much anticipated recovery in
capital spending, and mortgage financiers readied themselves for another
refinancing round. Starting at 4.0 percent, ten-year treasuries dropped to 3.1
percent. Then just as quickly as they fell, they rose to a high of 4.6 percent,
producing some wild swings in bond prices over the year. In the end, the
ten-year treasury was up only 25 basis points, finishing 2003 at 4.25 percent.
Since rates ended the year only a bit higher than where they began, bond
investors earned the income and didn't suffer the price erosion many of us
expected with a recovery in the economy. The returns generally matched up with
the maturity structures of the investments. The PC&J Preservation Fund, with a
relatively short average maturity, provided a 2.6 percent return, which was
higher than the return from short-term treasuries and lower than the longer-term
Lehman Index.
Although the Federal Reserve continues to promise restraint and inflation
remains subdued, we are concerned about a rise in rates and the harm that would
do to bond prices. The slope of the yield curve measured by the 240
basis-point difference between the 2-year and 10-year treasuries supports an
expanding economy. We believe this will lead to higher rates sooner rather than
later. And from 2003's activity, we can see that these changes can happen very
quickly. Looking out over a longer timeframe, the strategy of maintaining a
lower risk posture than the Lehman Index, through a lower average duration, has
led to returns that are more consistent over time.
Growth of $10,000 Investment
PRESERVATION LEHMAN G/C TREASURY B
GROWTH GROWTH GROWTH
1993 10,000 10,000 10,000
1994 9,760 9,660 10,390
1995 11,244 11,428 11,013
1996 11,553 11,736 11,598
1997 12,405 12,851 12,216
1998 13,441 14,136 12,839
1999 13,264 13,783 13,433
2000 14,504 15,416 14,241
2001 15,410 16,727 14,723
2002 16,332 18,573 14,955
2003 16,761 19,441 15,106
TOTAL RETURNS AND THE GROWTH OF A $10,000 INVESTMENT ARE BASED ON PAST
PERFORMANCE AND ARE NOT AN INDICATION OF FUTURE PERFORMANCE. THE VALUE OF YOUR
SHARES WILL FLUCTUATE AND MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST AT
THE TIME OF REDEMPTION. THE RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
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PC&J PRESERVATION FUND
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SCHEDULE OF INVESTMENTS
DECEMBER 31, 2003
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- ------------------------------------ ---------- ---------- ---------- ------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS:
Maturity of 5 - 10 years: 11.7%
Federal Home Loan Bks Step Up Note,
4.250%, due 12-21-09 6.00 $1,600,000 $1,625,024
Federal National Mortgage Assn. Note,
0.000%, due 07-19-11 7.50 500,000 493,185
2,118,209
Maturity of 10 - 20 years: 32.6
Federal Home Loan Bks Step Up Note,
4.000%, due 05-07-15 11.25 750,000 745,013
Federal Home Loan Mortgage Corp.,
3.500%, due 12-05-17 14.00 1,500,000 1,485,825
Federal Home Loan Banks,
4.250%, due 06-04-18 14.50 2,000,000 1,952,220
Federal Home Loan Banks,
4.250%, due 07-16-18 14.50 500,000 461,295
Federal Home Loan Bks Step Up Note,
4.999%, due 09-21-18 14.75 750,000 750,630
Federal Home Loan Mortgage Corp.,
4.250%, due 11-05-18 14.75 500,000 503,315
5,898,298
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $8,072,321) 44.3 8,016,507
U.S. CORPORATE OBLIGATIONS:
Maturity of less than 1 year: 2.8
General Motors Corp.,
7.625%, due 06-15-04 .50 500,000 513,347
TOTAL U.S. CORPORATE OBLIGATIONS
(Cost $512,599) 2.8 513,347
See notes to financial statements.
PC&J PRESERVATION FUND
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SCHEDULE OF INVESTMENTS (Continued)
DECEMBER 31, 2003
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- ------------------------------------- ---------- --------- ---------- ------
TAXABLE MUNICIPAL OBLIGATIONS:
Maturity of less than 1 year: 2.3%
Rome, NY Hsg. Dev. Taxable Bonds,
6.500%, due 01-01-04 (1) .00 $ 15,000 $ 15,000
Philadelphia, PA Industrial Dev. Taxable
Bonds, 6.488%, due 06-15-04 .50 237,579 240,556
Hamilton OH Northern School Districts
Gas Rv, 7.270%, due 08-01-04 .50 150,000 153,293
408,849
Maturity of 1 - 5 years: 8.8
Cleveland, OH Airport Taxable Bonds,
6.490%, due 01-01-06 2.00 365,000 392,718
Chicago Heights, IL GO Taxable
Bonds, 7.350%, due 12-01-07 4.00 170,000 192,093
Minneapolis, MN Cmty. Dev. Taxable
Bonds, 10.400%, due 12-01-07 4.00 360,000 370,908
Oklahoma City, OK Airport Taxable
Bonds, 6.950%, due 07-01-08 4.50 475,000 486,205
Dayton, OH Taxable Hsng Improvement
Bonds, 6.250%, due 11-01-08 4.75 140,000 142,450
1,584,374
Maturity of 5 - 10 years: 13.6
Dayton, OH Econ. Dev. Taxable
Bonds, 6.380%, due 12-01-09 6.00 500,000 555,175
Baltimore, MD Taxable
Bonds, 8.400%, due 07-01-11 7.50 475,000 478,563
Mississippi State GO Taxable
Bonds, 6.750%, due 11-01-12 8.75 300,000 311,019
Denver, CO School Dist. Taxable Bonds,
6.940%, due 12-15-12 9.00 500,000 575,170
St. Cloud, MN Taxable Bonds,
6.700%, due 02-01-13 9.00 70,000 70,000
Dayton, OH Taxable Bonds,
6.500%, due 11-01-13 9.75 250,000 254,375
Sacramento, CA Redev. Agency Taxable
Bonds, 6.375%, due 11-01-13 9.75 200,000 215,212
2,459,514
See notes to financial statements.
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PC&J PRESERVATION FUND
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SCHEDULE OF INVESTMENTS (Concluded)
DECEMBER 31, 2003
PERCENT YEARS
OF NET TO PRINCIPAL MARKET
SECURITY ASSETS MATURITY AMOUNT VALUE
- ----------------------------------- ---------- ----------- ---------- ------
Maturity of 10 - 20 years: 11.1%
Jackson Cnty., MS GO Taxable Bonds,
8.250%, due 03-01-14 10.25 $ 135,000 $ 143,830
Jackson Cnty., MS GO Taxable Bonds,
8.250%, due 03-01-15 11.25 210,000 223,736
Ohio State Taxable Bonds,
7.600%, due 10-01-16 12.75 750,000 853,890
Palmdale, CA Redev. Taxable Bonds,
7.900%, due 09-01-17 13.75 225,000 259,544
Connecticut St. Dev. Auth. Rev. Taxable
Bonds, 8.750%, due 10-15-19 15.75 500,000 530,125
2,011,125
Maturity of 20 - 30 years: 3.1
Broward Cnty., FL Professional Sports
Fac., 8.110%, due 09-01-28 24.75 500,000 563,450
TOTAL TAXABLE MUNICIPAL
OBLIGATIONS (Cost $6,790,607) 38.9 7,027,312
TOTAL U.S. GOVERNMENT AND
AGENCY, TAXABLE MUNICIPAL AND
U.S. CORPORATE OBLIGATIONS
(Cost $15,375,527) 86.0 $15,557,166
SHORT-TERM OBLIGATIONS 13.1
First American Treasury Obligations 16,782
Federated Prime Obligations 2,350,000
TOTAL SHORT-TERM OBLIGATIONS
(Cost $2,366,782) 2,366,782
TOTAL INVESTMENTS
(Cost $17,742,309) (2) 99.1% $17,923,948
(1) Call date
(2) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation. (See Note D)
See notes to financial statements.
PC&J PRESERVATION FUND
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STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 2003
ASSETS:
Investments in securities, at market value
(Cost basis - $17,742,309) (Notes A& D) $17,923,948
Receivables - Interest 171,389
Receivables - Fund shares sold 712
Total assets 18,096,049
LIABILITIES:
Accrued expenses (Note B) (15,184)
Total liabilities (15,184)
NET ASSETS $18,080,865
SHARES OUTSTANDING (Unlimited authorized shares - no par value):
Beginning of year 1,686,211
Net decrease (Note C) (23,899)
End of year 1,662,312
NET ASSET VALUE, offering price and redemption price per share $ 10.88
NET ASSETS CONSIST OF:
Paid in capital $18,142,393
Net unrealized appreciation on investments 181,639
Undistributed net investment income 7,543
Accumulated net realized loss on investments (250,710)
Net Assets $18,080,865
See notes to financial statements.
PC&J PRESERVATION FUND
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STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
INVESTMENT INCOME - Interest (Note A): $ 934,216
EXPENSES (Note B):
Investment advisory fee 89,881
Management fee 89,881
Other 327
Total expenses 180,089
NET INVESTMENT INCOME 754,127
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (Note D):
Net realized loss on investments (98,697)
Change in unrealized depreciation of investments (195,547)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (294,244)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 459,883
See notes to financial statements.
PC&J PRESERVATION FUND
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STATEMENTS OF CHANGES IN NET ASSETS
For The Years Ended December 31,
2003 2002
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income $ 754,127 $ 866,249
Net realized gain (loss) on investments (98,697) 9,957
Change in unrealized appreciation/depreciation of
investments (195,547) 208,131
Net increase in net assets from operations 459,883 1,084,337
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (750,354) (889,996)
From net realized gain on investments 0 0
Net decrease in assets from distributions
to shareholders (750,354) (889,996)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS (Note C) (276,052) 13,071
Total increase (decrease) in net assets (566,523) 207,412
NET ASSETS:
Beginning of year 18,647,388 18,439,976
End of year $18,080,865 $18,647,388
UNDISTRIBUTED NET INVESTMENT INCOME $ 7,543 $ 4,182
See notes to financial statements.
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PC&J PRESERVATION FUND
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NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2003
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 by the Adviser, in conformity with
guidelines adopted by and subject to review by the Board of Trustees.
(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, or substantially all, of
its net investment income and net realized gains on security transactions.
Accordingly, no provision for federal income or excise taxes has been made in
the accompanying financial statements. The Fund has a capital loss carry
forward of $250,864, of which $152,425 can be carried forward through 2008 and
$98,439 through 2011.
(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 $89,881 for
the year ended December 31, 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 $89,881 for the year ended December 31, 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
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NOTES TO FINANCIAL STATEMENTS (Concluded)
FOR THE YEAR ENDED DECEMBER 31, 2003
C. CAPITAL SHARE TRANSACTIONS
For the Year Ended For the Year Ended
December 31, 2003 December 31, 2002
Shares Dollars Shares Dollars
--------- ------------ --------- ------------
Subscriptions 354,324 $ 3,961,862 142,241 $ 1,598,350
Reinvestment of distributions 68,966 750,354 80,542 889,996
423,290 4,712,216 222,783 2,488,346
--------- ------------ --------- ------------
Redemptions (447,189) (4,988,268) (218,922) (2,475,275)
Net increase (decrease) (23,899) $ (276,052) 3,861 $ 13,071
D. INVESTMENT TRANSACTIONS
Securities purchased and sold (excluding short-term obligations and long-term
U.S. Government securities) for the year ended December 31, 2003, aggregated
$686,670 and $4,278,274, respectively. Purchases and sales of long-term U.S.
Government Securities for the year ended December 31, 2003, aggregated
$4,495,469 and $2,690,000, respectively.
At December 31, 2003, gross unrealized appreciation on investments was $321,941
and gross unrealized depreciation on investments was $140,302 for a net
unrealized appreciation of $181,639 for
financial reporting and federal income tax purposes.
E. FEDERAL TAX DISCLOSURE
Tax Character of Distributions Paid
For the Year Ended December 31, 2003 For the Year Ended December 31, 2002
- ------------------------------------ ------------------------------------
Ordinary Income Capital Gains Total Distribution Ordinary Income Capital Gains Total Distribution
- ---------------- -------------- ------------------- ---------------- -------------- -------------------
$ 750,354 $ 0 $ 750,354 $ 889,996 $ 0 $ 889,996
Tax Basis of Distributable Earnings
As of December 31, 2003
Undistributed Ordinary Income Undistributed Capital Gains Unrealized Appreciation
- ------------------------------ ---------------------------- ------------------------
$ 7,543 $ 0 $ 181,639
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
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FINANCIAL HIGHLIGHTS
Selected Data for Each Share of Capital For The Years Ended December 31,
Stock Outstanding Throughout the Year 2003 2002 2001 2000 1999
-------- -------- -------- -------- --------
NET ASSET VALUE-BEGINNING OF YEAR $ 11.06 $ 10.96 $ 10.88 $ 10.54 $ 11.37
Income from investment operations:
Net investment income 0.47 0.54 0.62 0.63 0.61
Net realized and unrealized
gain (loss) on securities (0.18) 0.11 0.06 0.35 (0.76)
TOTAL FROM INVESTMENT OPERATIONS 0.29 0.65 0.68 0.98 (0.15)
Less distributions:
From net investment income (0.47) (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 DISTRIBUTIONS (0.47) (0.55) (0.60) (0.64) (0.68)
NET ASSET VALUE-END OF YEAR $ 10.88 $ 11.06 $ 10.96 $ 10.88 $ 10.54
TOTAL RETURN 2.63% 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 4.19% 4.64% 5.31% 5.40% 5.37%
Portfolio turnover rate 30.80% 53.92% 46.56% 35.10% 36.25%
Net assets at end of period (000's) $18,081 $18,647 $18,440 $18,839 $19,684
See notes to financial statements.
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees
PC&J Preservation Fund
We have audited the accompanying statement of assets and liabilities of PC&J
Preservation Fund (the "Fund"), including the schedule of investments, as of
December 31, 2003, and the related statements of operations for the year then
ended and of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation
of securities owned as of December 31, 2003, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of PC&J
Preservation Fund as of December 31, 2003, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Columbus, Ohio
February 10, 2004
PC&J PRESERVATION FUND
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FUND TRUSTEES DISCLOSURE
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
Year of Birth: 1935 Trustee Trustee since 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 Trustee since
Year of Birth: 1931 Trustee 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 PERFORMANCE FUND
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FUND TRUSTEES DISCLOSURE (Concluded)
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, 2003, the term "Fund Complex" refers to the PC&J
Performance Fund and the PC&J Preservation Fund.
The Statement of Additional Information includes additional information about
the Trustees and is available without charge upon request, by calling toll free
at (888) 223-0600.
ITEM 2. CODE OF ETHICS.
(a) As of the end of the period covered by this report, the registrant has
adopted a code of ethics that applies to the registrant's principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party.
(b) For purposes of this item, "code of ethics" means written standards that
are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual or
apparent conflicts of interest between personal and professional relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in reports
and documents that a registrant files with, or submits to, the Commission and in
other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) Amendments: During the period covered by the report, there have not
been any amendments to the provisions of the code of ethics.
(d) Waivers: During the period covered by the report, the registrant has
not granted any express or implicit waivers from the provisions of the code of
ethics.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) The registrant's board of trustees has determined that Laura B. Pannier
is an audit committee financial expert. Ms. Pannier is independent for purposes
of this Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES
-----------
FY 2002 $ 12,800
FY 2003 $ 13,250
(b) AUDIT-RELATED FEES
-------------------
Registrant Parker Carlson & Johnson
---------- ---------------------------
FY 2002 $ None $ None
FY 2003 $ None $ None
Nature of the fees: N/A
(c) TAX FEES
---------
Registrant Parker Carlson & Johnson
---------- ---------------------------
FY 2002 $ 1,500 $ None
FY 2003 $ 1,500 $ None
Nature of the fees: Federal and Excise Tax Returns
(d) ALL OTHER FEES
----------------
Registrant Parker Carlson & Johnson
---------- ---------------------------
FY 2002 $ 250 $ None
FY 2003 $ 250 $ None
Nature of the fees: NSAR - Internal Control Letter
N1A - Review
(e) (1) AUDIT COMMITTEE'S PRE-APPROVAL POLICIES
------------------------------------------
The Audit Committee shall pre-approve all audit services and, when
appropriate, any non-audit services provided by the independent auditors to the
Trust, and pre-approve, when appropriate, any non-audit services provided by the
independent auditors to the Trust's investment adviser, or any entity
controlling, controlled by, or under common control with the investment adviser
and that provides ongoing services to the Trust if the engagement relates
directly to the operations and financial reporting of the Trust.
The Committee shall have the following duties and powers:
to review the fees charged by the auditors for audit and non-audit
services;
to consider the controls applied by the auditors and any measures
taken by management in an effort to assure that all items requiring pre-approval
by the Committee are identified and referred to the Committee in a timely
fashion; and
to consider whether the non-audit services provided by the Trust's
auditor to the Trust's investment adviser or any adviser affiliate that provides
ongoing services to the Trust, which services were not pre-approved by the
Committee, are compatible with maintaining the auditors' independence.
(2) PERCENTAGES OF SERVICES APPROVED BY THE AUDIT COMMITTEE
--------------------------------------------------------------
Registrant Parker Carlson & Johnson
---------- ---------------------------
Audit-Related Fees: None None
Tax Fees: 100 % None
All Other Fees: 100 % None
(f) During audit of registrant's financial statements for the most recent
fiscal year, less than 50 percent of the hours expended on the principal
accountant's engagement were attributed to work performed by persons other than
the principal accountant's full-time, permanent employees.
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's investment
adviser (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment adviser),
and any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant:
Registrant Parker Carlson & Johnson
---------- ---------------------------
FY 2002 $ 1,750 $ None
FY 2003 $ 1,750 $ None
(h) The principal accountant does not provide services to the Registrant's
Investment Adviser.
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END FUNDS. Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable
to Annual Reports for the period ended December 31, 2003.
ITEM 10. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures as of December 31, 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 11. EXHIBITS.
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 Carlson, Treasurer
Date February 18, 2004
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 February 18, 2004
By
/s/_______________________________
Kathleen Carlson, Treasurer
Date February 18, 2004
EX-99.CODE ETH
THE PC&J MUTUAL FUNDS
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
I. COVERED OFFICERS/PURPOSE OF THE CODE
This code of ethics (this "Code") for The PC&J Mutual Funds (the "Company")
applies to the Company's Principal Executive Officer, Principal Financial
Officer, Compliance Officer and Director of Operations (the "Covered Officers"
each of whom is set forth in Exhibit A) for the purpose of promoting:
- - honest and ethical conduct, including the ethical handling of actual or
apparent conflicts of interest between personal and professional relationships;
- - full, fair, accurate, timely and understandable disclosure in reports and
documents that the Company files with, or submits to, the Securities and
Exchange Commission ("SEC") and in other public communications made by the
Company;
- - compliance with applicable laws and governmental rules and regulations;
- - the prompt internal reporting of violations of this Code to an appropriate
person or persons identified in this Code; and
- - accountability for adherence to this Code.
Each Covered Officer should adhere to a high standard of business ethics
and should be sensitive to situations that may give rise to actual as well as
apparent conflicts of interest.
II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS
OF INTEREST
OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private
interests interfere with the interests of, or the Covered Officer's service to,
the Company. For example, a conflict of interest would arise if a Covered
Officer, or a member of the Covered Officer's family, receives improper personal
benefits as a result of the Covered Officer's position with the Company.
Certain conflicts of interest arise out of the relationships between Covered
Officers and the Company and already are subject to conflict of interest
provisions in the Investment Company Act of 1940 ("Investment Company Act") and
the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example,
Covered Officers may not individually engage in certain transactions (such as
the purchase or sale of securities or other property) with the Company because
of their status as "affiliated persons" of the Company. This Code does not, and
is not intended to, repeat or replace any compliance programs and procedures of
the Company or the investment adviser designed to prevent, or identify and
correct, violations of the Investment Company Act and the Investment Advisers
Act.
Although typically not presenting an opportunity for improper personal benefit,
conflicts arise from, or as a result of, the contractual relationship between
the Company and the investment adviser or the administrator of which a Covered
Officer is also an officer or employee. As a result, this Code recognizes that
the Covered Officers will, in the normal course of their duties, whether
formally for the Company and/or for the adviser or the administrator, be
involved in establishing policies and implementing decisions that will have
different effects on the adviser or the administrator and the Company. The
participation of the Covered Officers in such activities is inherent in the
contractual relationship between the Company and the adviser or the
administrator and is consistent with the performance by the Covered Officers of
their duties as officers of the Company. Thus, if performed in conformity with
the provisions of the Investment Company Act and the Investment Advisers Act,
such activities will be deemed to have been handled ethically. In addition, it
is recognized by the Company's Board of Trustees ("Board") that the Covered
Officers may also be officers or employees of one or more investment companies
covered by other codes.
Other conflicts of interest are covered by this Code, even if such conflicts of
interest are not subject to provisions in the Investment Company Act and the
Investment Advisers Act. The following list provides examples of conflicts of
interest under this Code, but Covered Officers should keep in mind that these
examples are not exhaustive. The overarching principle is that the personal
interest of a Covered Officer should not be placed improperly before the
interest of the Company.
Each Covered Officer must:
- - not use personal influence or personal relationships improperly to
influence investment decisions or financial reporting by the Company whereby the
Covered Officer would benefit personally to the detriment of the Company;
- - not cause the Company to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than the benefit of
the Company;
- - not use material non-public knowledge of portfolio transactions made or
contemplated for the Company to trade personally or cause others to trade
personally in contemplation of the market effect of such transactions;
- - report at least annually any affiliations or other relationships related
to conflicts of interest that the Company's Trustees and Officers Questionnaire
covers.
There are some conflict of interest situations that should always be
discussed with the compliance officer of the Company appointed by the Board (the
"Compliance Officer"), if material. Examples of these include:
- - service as a director on the board of any public company;
- - the receipt of any non-nominal gifts;
- - the receipt of any entertainment from any company with which the Company
has current or prospective business dealings unless such entertainment is
business-related, reasonable in cost, appropriate as to time and place, and not
so frequent as to raise any questions of impropriety;
- - any ownership interest in, or any consulting or employment relationship
with, any of the Company's service providers, other than its investment adviser,
principal underwriter, administrator or any affiliated person thereof; and
- - a direct or indirect financial interest in commissions, transaction
charges or spreads paid by the Company for effecting portfolio transactions or
for selling or redeeming shares other than an interest arising from the Covered
Officer's employment, such as compensation or equity ownership.
III. DISCLOSURE AND COMPLIANCE
- - Each Covered Officer should familiarize himself with the disclosure
requirements generally applicable to the Company.
- - Each Covered Officer should not knowingly misrepresent, or cause others to
misrepresent, facts about the Company to others, whether within or outside the
Company, including to the Company's directors and auditors, and to governmental
regulators and self-regulatory organizations.
- - Each Covered Officer should, to the extent appropriate within the Covered
Officer's area of responsibility, consult with other officers and employees of
the Company and of the adviser or the administrator with the goal of promoting
full, fair, accurate, timely and understandable disclosure in the reports and
documents the Company files with, or submits to, the SEC and in other public
communications made by the Company.
- - It is the responsibility of each Covered Officer to promote compliance
with the standards and restrictions imposed by applicable laws, rules and
regulations.
IV. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
- - upon adoption of this Code (or thereafter as applicable, upon becoming a
Covered Officer), affirm in writing to the Board , in substantially the form set
forth on Exhibit B, that the Covered Officer has received, read, and understands
----------
this Code;
- - annually thereafter affirm to the Board, in substantially the form set
forth on Exhibit C, that the Covered Officer has complied with the requirements
----------
of this Code;
- - not retaliate against any other Covered Officer or any employee of the
Company or their affiliated persons for reports of potential violations that are
made in good faith; and
- - notify the Compliance Officer for the Company promptly if the Covered
Officer knows of any violation of this Code. Failure to do so is itself a
violation of this Code.
The Compliance Officer for the Company is responsible for applying this Code to
specific situations in which questions are presented under it and has the
authority to interpret this Code in any particular situation. However, any
approvals or waivers sought by a Covered Officer will be considered by the Audit
Committee (the "Committee"), which will make recommendations to the Board.
The Company will follow these procedures in investigating and enforcing
this Code:
- - the Compliance Officer for the Company will take all appropriate action to
investigate any potential violations reported to the Compliance Officer;
- - the Compliance Officer will review with the outside legal counsel to the
Company the findings and conclusions of such investigation;
- - if, after such investigation and review, the Compliance Officer believes
that no violation has occurred, the Compliance Officer is not required to take
any further action;
- - any matter that the Compliance Officer believes is a violation will be
reported to the Committee;
- - if the Committee concurs that a violation has occurred, it will inform and
make a recommendation to the Board, which will consider appropriate action,
which may include review of, and appropriate modifications to, applicable
policies and procedures (including changes to this Code); notification of the
violation to appropriate personnel of the investment adviser or the
administrator or its board; or a recommendation to take disciplinary action
against the Covered Officer, which may include, without limitation, dismissal;
- - the Board will be responsible for granting waivers, as appropriate; and
- - any changes to or waivers of this Code will, to the extent required, be
disclosed as provided by SEC rules.
V. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Company for
purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms
applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Company, the Company's adviser, principal
underwriter, the administrator or other service providers govern or purport to
govern the behavior or activities of the Covered Officers who are subject to
this Code, they are superseded by this Code to the extent that they overlap or
conflict with the provisions of this Code. The Company's and its investment
adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the
Investment Company Act are separate requirements applying to the Covered
Officers and others, and are not part of this Code.
VI. AMENDMENTS
Any amendments to this Code, other than amendments to Exhibit A, must be
approved or ratified by a majority vote of the Board, including a majority of
independent trustees.
VII. CONFIDENTIALITY
To the extent possible, all records, reports and other information
prepared, maintained or acquired pursuant to this Code will be treated as
confidential, it being understood that it may be necessary or advisable, that
certain matters be disclosed to third parties (e.g., to the board of directors
or officers of the adviser or the administrator).
VIII. INTERNAL USE
This Code is intended solely for the internal use by the Company and does
not constitute an admission, by or on behalf of the Company, as to any fact,
circumstance, or legal conclusion.
EXHIBIT A
- ----------
PERSONS COVERED BY THIS CODE OF ETHICS
President
Treasurer
Compliance Officer
Director of Operations
EXHIBIT B
- ----------
PC&J MUTUAL FUNDS
COVERED OFFICERS AFFIRMATION OF UNDERSTANDING
In accordance with Section IV of the Code of Ethics for Principal Executive and
Senior Financial Officers (the "Code"), the undersigned Covered Officers of the
Company (as defined in the Code) hereby affirm to the Board that the Covered
Officers have received, read, and understand the Code.
Date: February 3, 2004
/s/_________________________________________
President
Date: February 3, 2004
/s/_________________________________________
Treasurer and Compliance Officer
Date: February 3, 2004
/s/_________________________________________
Director of Operations
EXHIBIT C
- ----------
PC&J MUTUAL FUNDS
COVERED OFFICERS ANNUAL AFFIRMATION
For the period December 31,____ to December 31, ____
In accordance with Section IV of the Code of Ethics for Principal Executive and
Senior Financial Officers (the "Code"), the undersigned Covered Officers of the
Company (as defined in the Code) hereby affirm to the Board that the Covered
Officers, at all times during the period for which this affirmation is given,
have complied with each of the requirements of the Code.
Date: ___________________ _________________________________________
President
Date: ___________________ _________________________________________
Treasurer and Compliance Officer
Date: ___________________ _________________________________________
Director of Operations
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) and internal control
over financial reporting (as defined in Rule 30a-3(d) 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) designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and
procedures and 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; and
d) 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: February 18, 2004
-------------------
/s/____________________________
Leslie O. Parker III
President
I, Kathleen 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) and internal control
over financial reporting (as defined in Rule 30a-3(d) 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) designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and
procedures and 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; and
d) 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: February 18, 2004
-------------------
/s/____________________________
Kathleen Carlson
Treasurer
EX-99.906CERT
CERTIFICATION
Leslie O. Parker III, 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
December 31, 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 Trust PC&J Preservation Fund Trust
/s/_____________________________ /s/_______________________________
Leslie O. Parker III Kathleen Carlson
Date: February 18, 2004 Date: February 18, 2004
------------------- -------------------
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 Trust and
will be retained by PC&J Preservation Fund Trust 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. 1350 and is not being filed as part of the Form N-CSR filed with the
Commission.