UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SEMI-ANNUAL SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 239-0515

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TRIDAN CORP.

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P.O. Box 634, New City, N.Y. 10956

(212) 239-0515

SEMI-ANNUAL REPORT

December 22, 2016

Dear Shareholder:

This semi-annual report of Tridan Corp. covers the six-month period from May 1, 2016 to October 31, 2016.  As part of this report, we enclose the unaudited financial report for that six-month period and for the corresponding period in 2015.

A schedule of the company’s portfolio holdings at October 31, 2016, consisting entirely of municipal obligations, is included in the financial report.  The company invests exclusively in non-voting securities.  The company files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q.  The company’s Forms N-Q are available on the Commission’s website at http://www.sec.gov.  They may be reviewed and copied at the Commission’s Public Reference Room in Washington D.C., and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

The net asset value per share at October 31, 2016 was $12.44, compared with $12.43 at October 31, 2015.  Net investment income per share was $.11 for the six-month period ended October 31, 2016, compared with $.12 for the six-month period ended October 31, 2015.

At the company’s last annual meeting on July 19, 2016, the reappointment of WeiserMazars LLP as the company’s auditors for the fiscal year ending April 30, 2017 was ratified by the shareholders as follows:

 

Also at the last annual meeting, the incumbent directors, all of whom are named below, were all reelected to serve as directors until the next annual meeting of shareholders, or until their successors are elected and have qualified.

During the six-month period ended October 31, 2016, no director or officer received any compensation from the company except for fees of $6,000 paid to each director, plus an additional $2,500 to Paul Kramer as chairman of the audit committee.  All executive officers of the company as a group (two persons) received compensation (comprised solely of said directors’ fees) aggregating $12,000 during said period (which excludes professional fees paid to the law firm of which I. Robert Harris, secretary of the company, is a member).

At its meeting on June 16, 2016, the Board of Directors unanimously approved the renewal of the company’s investment advisory agreement with J.P. Morgan Investment Management Inc. for the period July 1, 2016 to June 30, 2017.  The board considered a variety of material factors and conclusions with respect thereto that formed the basis for the board’s approval, as discussed below.

Throughout the year, the directors received and analyzed a substantial quantity of comprehensive information and written materials, including ongoing analysis of Tridan's existing portfolio and Morgan's recommendations in light of its forecasts for the economy, employment trends, business conditions, federal rate moves, interest trends including comparisons between tax-exempt and taxable bonds, appropriate maturities, quality, yields, diversification, etc.  The directors subject Morgan's portfolio management to scrutiny at each board meeting, including examination of transactions completed since the prior meeting and an overview of the entire portfolio.  Written materials received by the directors before and during each meeting include reports, statistics, charts, graphs, performance records, comparisons with other funds and the like.  Morgan is constantly questioned at great length regarding its views, its recommendations and its performance.

 

In addition to the foregoing, as requested by Tridan’s corporate counsel pursuant to Section 15(c) of the Investment Company Act of 1940, Morgan submitted its audited financial statements and detailed information regarding Morgan's business, personnel and operations, advisory services, compensation matters, portfolio strategy, investment performance, sources of information, fee comparisons, compliance programs, and other matters of significance to the relationship between Tridan and its investment adviser, all of which material was furnished to each director.  The directors reviewed all of this material and discussed the same at length, as well as their own views on Morgan’s previous performance and relationship with Tridan, with particular attention to the following areas:

At each meeting, the directors receive, review and discuss with Morgan’s representatives various data showing Tridan’s portfolio characteristics, including market value, average duration, credit quality, coupon, estimated annual income and yield statistics, and breakdown information regarding duration, credit, and investment sectors.  Morgan’s quarterly presentation also includes the portfolio performance over three months, year to date, one year, three years, five years and ten years, compared with the Lipper NY Intermediate Muni Debt Funds, JPMorgan NY Tax Free Bond Fund, Sanford Bernstein NY Muni Fund, and Barclays 1-17 Year NY Muni Bond Index.  Based on their review, the directors all agreed that Tridan’s relative investment performance has been satisfactory.

The board’s analysis of the nature, extent and quality of Morgan’s services to Tridan was based on knowledge gained over time from discussions with management and at the board’s regular meetings.  In addition, the directors reviewed materials contained in Morgan’s response to Tridan’s 15(c) Questionnaire pursuant to the Investment Company Act of 1940, and its Form ADV under the Investment Advisers Act of 1940 concerning, among much other information, the qualifications, education and experience of Morgan’s personnel involved in rendering those services.  As Tridan’s investment adviser, Morgan manages the investment of the Company’s assets, including purchases and sales of securities, and arranges for the periodic transfer of cash required to pay expenses and make distributions to shareholders.  Morgan also provides clerical and bookkeeping services, and prepares and issues periodic reports and statements.  Its affiliate maintains custody of Tridan’s securities and provides access thereto upon request.  The board considered its adviser’s performance of these administrative and support services, including monitoring adherence to the company’s investment policies, guidelines and restrictions, Morgan’s responsiveness to requests by Tridan’s counsel for periodic information, reports and certifications required for compliance with securities laws and regulations, and maintaining and monitoring their respective compliance programs in light of today’s extensive regulatory requirements.  The board concluded that the nature, extent and quality of the services provided by Morgan to the company have been and continue to be appropriate and beneficial.

 

Under its Investment Advisory Agreement with Morgan, Tridan pays an annual fee, computed and payable quarterly, equal to 0.28% (28 basis points) of its net assets under management.  The agreement requires Morgan to bear all expenses incurred by it in connection with its activities under the agreement, without any reimbursement from the company.  In addition, the annual charge made to Tridan for maintaining custody of the company’s securities, and for custodial-related services rendered by Morgan and its affiliates, is 0.02% (2 basis points) of the assets held in the custody account.  In light of the nature, extent and quality of the services received by Tridan from Morgan and its affiliated companies, and comparing the management fees charged by Morgan to other fixed-income investment companies managed by it, all of which are many times larger than Tridan, the Board considers Morgan’s management fee to Tridan to be reasonable.

After full consideration of the above factors, the board concluded unanimously that renewal of the investment advisory agreement with J.P. Morgan Investment Management Inc. was in the best interest of Tridan and its shareholders.

 

Tridan Corp. Contents October 31, 2016 and 2015

	Page(s)
Accountant’s Compilation Report	1
Financial Statements
Statements of Assets and Liabilities October 31, 2016 and 2015	3
Schedules of Investments in Municipal Obligations October 31, 2016 and 2015	4-9
Statements of Operations Six Months Ended October 31, 2016 and 2015	10
Statements of Changes in Net Assets Six Months ended October 31, 2016 and the Year Ended April 30, 2016	11
Notes to Financial Statements	11-17

		2016				2015
Assets
Investments in municipal obligations, at fair value (original cost - $37,773,993 and $37,155,238, respectively) (amortized cost - $35,792,599 and $35,240,432, respectively)		$	37,702,132			$	37,290,665
Cash and cash equivalents			321,586				726,983
Prepaid expenses and other current assets			6,294				6,294
Accrued interest receivable			482,169				506,452
Total assets		$	38,512,181			$	38,530,394
Liabilities
Accrued investment advisory fees		$	39,733			$	39,716
Accrued fees - affiliate			18,718				18,812
Accrued other			12,775				13,414
Common stock redemption payable			389,284				7,401
Total liabilities			460,510				79,343
Net assets		$	38,051,671			$	38,451,051
Analysis of net assets
Common stock, at $.02 par value, 6,000,000 shares authorized		$	63,982			$	63,982
Paid-in capital			37,816,314				37,816,314
Treasury stock			(1,674,181	)			(1,268,115	)
Distributable earnings:
Over distributed net investment income			(53,708	)			(207,109	)
Undistributed capital gains (losses)			(10,267	)			(4,252	)
Unrealized appreciation of investments, net			1,909,531				2,050,231
Net assets [equivalent to $ 12.44 and $12.43 per share, respectively, based on 3,059,643.6822 shares and 3,092,268.8867 shares of common stock outstanding, respectively]		$	38,051,671			$	38,451,051

		2016												2015
		Principal Amount				Amortized Cost				Fair Value				Principal Amount				Amortized Cost				Fair Value
Insured
N.Y. Bond Bank Agency
SCH Purpose Revenue
5.0% due December 1,2019		$	300,000			$	336,928			$	334,758			$	-			$	-			$	-
N.Y.S. Dormitory Authority Revs
Non St Supported Debt St Johns Univ - Insd
5.25% due July 1, 2021			1,000,000				1,039,157				1,179,270				1,000,000				1,047,490				1,194,380
N.Y.S. Dormitory Authority Revs
City University Sys Ref Cons 5th Gen
5.5% due July 1, 2019			1,000,000				1,024,010				1,117,550				1,000,000				1,033,353				1,157,020
N.Y.S. Dormitory Authority Revs
5.5% due May 15, 2018			1,155,000				1,176,197				1,236,254				1,155,000				1,190,038				1,292,041
Sachem Central School District
NY Holbrook Ref Unlimited Tax
5.25% due October 15, 2019			500,000				513,941				561,370				500,000				518,614				579,445
State of NY Dormitory Auth
Personal Inc Tax Rev Ref Educ.
5.50 % due March 15, 2025			500,000				538,892				643,080				500,000				543,535				640,145
			4,455,000				4,629,125				5,072,282				4,155,000				4,333,030				4,863,031
Revenue Backed
City of New York NY Municipal Water
Fin Auth Wtr. & Sewer Rev Fiscal 2009
(Par Call June 15, 2018 @100)
5.625% due June 15, 2024			1,000,000				996,873				1,076,850				1,000,000				995,540				1,126,160
N.Y.S. Dormitory Authority Revs
Non St Supported Debt Insd Sien College
(Par Call July 1, 2016 @100)
5.0% due July 1, 2020			1,000,000				1,007,539				1,003,690				1,000,000				1,013,707				1,031,790
City of New York NY Transitional Finance
Auth Rev Sub Future Tax Secured
(Par Call November 1, 2019 @100):
5.00% due November 1, 2020			500,000				521,222				559,515				500,000				527,366				576,346
5.00% due November 1, 2021			1,000,000				1,040,330				1,119,030				1,000,000				1,053,306				1,152,690
NY City Transitional Financial Authority
Rev Future Tax
(Par Call November 1, 2022 @100)
5.00% due November 1, 2026			550,000				596,970				665,676				550,000				604,788				654,869
Brookhaven NY Limited Tax
4.0% due March 15, 2023			1,000,000				1,178,380				1,166,050				-				-				-
Erie Count Indvl Dev
Agency
5.0% due May 1, 2025			750,000				949,124				941,993
NYC NY Cultural Res-Museum
of Modern Art
4.0% due February 1, 2023			400,000				469,427				464,164
Longwood NY Central School District
Suffolk
5.00% due March 15, 2019			185,000				202,617				202,706				-				-				-
Schnectady CNTY NY Various Purposes
LTD Tax
5.0% due January 15, 2020			800,000				916,851				928,616				-				-				-

		2016				2015
Investment income
Interest		$	794,054			$	824,688
Amortization of bond premium and discount - net			(249,731	)			(228,185	)
Total investment income			544,323				596,503
Expenses
Investment advisory fees			58,212				57,686
Professional fees			69,625				69,700
Director's fees			38,500				38,500
Administrative and accounting expenses			36,000				36,000
Insurance and other expenses			8,885				8,571
Total expenses			211,222				210,457
Net investment income			333,101				386,046
Realized and unrealized gain (loss) on investments
Net realized gain on investments			-				-
Net unrealized appreciation (depreciation) on investments			(472,495	)			(65,505	)
Net realized and unrealized gain (loss) on investments			(472,495	)			(65,505	)
Net increase (decrease) in net assets resulting from operations		$	(139,394	)		$	320,541

		Six Months Ended October 31, 2016				Year Ended April 30, 2016
Increase (decrease) in net assets resulting from operations
Net investment income		$	333,101			$	762,792
Net realized (loss) on investments			-				(6,015	)
Unrealized appreciation ( depreciation) on investments			(472,495	)			266,290
Net increase (decrease) in net assets resulting from operations			(139,394	)			1,023,067
Distributions to shareholders from
Net investment income			(370,913	)			(773,215	)
Redemptions of shares
31,317.5065 shares (October 2016) and			(389,595	)
2,252.8695 shares (April 2016), respectively							(28,206	)
Total increase (decrease)			(899,902	)			221,646
Net assets
Beginning of period			38,951,573				38,729,927
End of period		$	38,051,671			$	38,951,573

		Quoted Prices for Identical Instruments in Non-active Markets (Level 2)
		October 31,
		2016				2015
Investments in municipal obligations		$	37,702,132			$	37,290,665
Total investments at fair value		$	37,702,132			$	37,290,665

		October 31,
		2016				2015
Cash – demand deposits		$	321,586			$	726,983

		October 31,
		2016				2015
Accrued investment advisory and custodian fees (a)		$	39,733			$	39,716
Accrued fees - affiliate (b)		$	18,718			$	18,812
Accrued other:
Accrued audit fees (c)		$	12,500			$	11,750
Accrued administrative and accounting expenses			275				1,664
		$	12,775			$	13,414

		October 31,
		2016				2015
Net asset value		$	12.44			$	12.43

Shares outstanding at:
October 31, 2016			3,059,643.6822
October 31, 2015			3,092,268.8867

		Six Months Ended October 31,								Year Ended April 30,
		2016				2015				2016
Distributions paid from Investment income:
Tax-exempt investment income, net		$	370,913			$	587,681			$	773,215
Capital gains			-				-				-
		$	370,913			$	587,681			$	773,215

		Six Months Ended October 31,								Year Ended April 30,
		2016				2015				2016
Over-distributed tax-exempt investment Income, net		$	(53,708	)		$	(207,109	)		$	(15,895	)
Over-distributed taxable investment income			-				-				-
Undistributed capital gains (losses)			(10,267	)			(4,252	)			(10,267	)
Unrealized appreciation of investments, net			1,909,531				2,050,231				2,382,026
		$	1,845,556			$	1,838,870			$	2,355,864

		For the Six Months Ended October 31,
		2016				2015				2014				2013				2012
Per share operating performance:
(For a share of common stock Outstanding throughout the  period):
Net asset value -beginning of year		$	12.60			$	12.52			$	12.56			$	12.88			$	12.89
Income from investment operations:
Net investment income			.11				.12				.13				.13				.14
Net realized and unrealized gain (loss) on investments			(.15	)			(.02	)			.04				(.32	)			.05
Total from investment operations			(.04	)			.10				.17				(.19	)			.19
Less distributions:
Dividends (from net investment income)			(.12	)			(.19	)			(.19	)			(.18	)			(.19	)
Capital gains			(.00	)			(.00	)			(.00	)			(.01	)			(.00	)
Total distribution			(.12	)			(.19	)			(.19	)			(.19	)			(.19	)
Net asset value - end of year		$	12.44			$	12.43			$	12.53			$	12.50			$	12.89
Per share market value – end of period		$	12.44			$	12.43			$	12.53			$	12.50			$	12.89
Total investment return			(0.04	%)			(0.02	%)			(0.80	%)			(1.94	%)			(1.08	)%
Ratios/Supplemental Data:
net assets end of period (in 000s)		$	38,051			$	38,451			$	38,769			$	38,685			$	39,915
Ratio of expenses to average net assets			1.11	%			1.09	%			1.09	%			1.09	%			1.07	%
Ratio of net investment income To average net assets			1.75	%			2.01	%			2.07	%			2.06	%			2.15	%
Portfolio turnover rate			7.05	%			1.68	%			5.76	%			5.12	%			3.38	%
Average (simple) number of shares outstanding (in thousands)			3,060				3,092				3,094				3,095				3,100