(LOGO)
FRONTEGRA FUNDS
ANNUAL REPORT
Frontegra Growth Fund
FRONTEGRA ASSET MANAGEMENT, INC.
--------------
June 30, 1999
(LOGO)
FRONTEGRA FUNDS
TABLE OF CONTENTS
Shareholder Letter 1
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Investment Highlights 4
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Schedule of Investments 5
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Statement of Assets and Liabilities 8
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Statements of Operations 9
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Statements of Changes in Net Assets 10
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Financial Highlights 11
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Notes to Financial Statements 12
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Report of Independent Auditors 15
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This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors unless
accompanied or preceded by an effective Prospectus for the Fund. The Prospectus
includes more complete information about management fees and expenses,
investment objectives, risks and operating policies of the Fund. Please read the
Prospectus carefully.
(LOGO)
FRONTEGRA FUNDS
DEAR FELLOW SHAREHOLDERS:
This report reflects a shortened fiscal year (November 1, 1998 to June 30, 1999)
as we are realigning the Frontegra Growth Fund's (the "Fund") fiscal quarters to
calendar quarters. The Fund's fiscal year now ends on June 30 rather than
October 31.
Our Fund's abbreviated fiscal year was a very good period for equity investors.
The Fund increased by 28.58%, which significantly outperformed the broad market
but modestly trailed the gain in the large capitalization growth index.
Frontegra Growth Fund 28.58%
Russell 1000 Large-Cap Growth Index 29.57%
S&P 500 Large-Cap Index 25.97%
S&P Mid-Cap Index 25.76%
S&P Small-Cap Index 18.04%
Your top performers during the shortened fiscal year ending June 30 are the same
companies that we discussed at length in the Fund's April report.
TOP PERFORMERS (11/1/98 - 6/30/99) RETURN
--------------------------------------------------
Nortel Networks 103%
Amgen 93%
Liberty Media 93%
First Data 84%
Cendant 79%
Microsoft 70%
Lucent 62%
MCI WorldCom 60%
Tyco International 60%
Dayton Hudson 55%
SECTOR EXPOSURE VS. MAJOR GROWTH SECTORS
The consistent earnings growth and strong stock performance within the
technology and healthcare sectors have resulted in these two areas becoming
dominant within our investment universe - as well as within our major
performance benchmark. In fact, technology and healthcare stocks now account for
over 60% of the Russell 1000 Growth Index. It follows that our ability to
provide strong relative performance will be heavily impacted by our stock
selection and weighting decisions within these two key growth sectors.
In our April letter we highlighted the Fund's strong performance since the
market correction in the fall of 1998. At that time, we were able to take
advantage of the market's pullback to purchase various high-quality technology
companies at excellent prices. Since that time, our technology holdings have
produced returns of 60-90%. This performance significantly outpaced the overall
market and was dramatically better than the healthcare sector, which was up only
12% during the same period.
(LOGO)
FRONTEGRA FUNDS
Figure 1 provides a visual representation of the relative performance of
technology stocks versus pharmaceutical stocks over the past five years. Note
that over the last nine months, the technology sector has significantly
outperformed the pharmaceutical sector.
S&P TECHNOLOGY STOCKS VS. S&P PHARMACEUTICAL STOCKS
RELATIVE PERFORMANCE INDEX
30-Jun-1994 1.00
01-Jul-1994 1.00
05-Jul-1994 0.99
06-Jul-1994 0.98
07-Jul-1994 0.99
08-Jul-1994 0.99
11-Jul-1994 1.01
12-Jul-1994 1.04
13-Jul-1994 1.05
14-Jul-1994 1.04
15-Jul-1994 1.02
18-Jul-1994 1.03
19-Jul-1994 1.02
20-Jul-1994 1.01
21-Jul-1994 1.02
22-Jul-1994 1.03
25-Jul-1994 1.01
26-Jul-1994 1.01
27-Jul-1994 1.02
28-Jul-1994 1.02
29-Jul-1994 1.03
01-Aug-1994 1.04
02-Aug-1994 1.00
03-Aug-1994 1.01
04-Aug-1994 1.00
05-Aug-1994 1.01
08-Aug-1994 1.01
09-Aug-1994 1.01
10-Aug-1994 0.99
11-Aug-1994 1.00
12-Aug-1994 0.99
15-Aug-1994 0.98
16-Aug-1994 0.97
17-Aug-1994 0.97
18-Aug-1994 0.98
19-Aug-1994 0.98
22-Aug-1994 0.97
23-Aug-1994 0.98
24-Aug-1994 0.98
25-Aug-1994 1.00
26-Aug-1994 1.00
29-Aug-1994 1.00
30-Aug-1994 1.01
31-Aug-1994 1.00
01-Sep-1994 0.99
02-Sep-1994 0.99
06-Sep-1994 0.99
07-Sep-1994 1.00
08-Sep-1994 1.00
09-Sep-1994 1.00
12-Sep-1994 0.99
13-Sep-1994 1.00
14-Sep-1994 1.01
15-Sep-1994 1.01
16-Sep-1994 1.02
19-Sep-1994 1.00
20-Sep-1994 1.00
21-Sep-1994 1.00
22-Sep-1994 0.99
23-Sep-1994 0.98
26-Sep-1994 0.98
27-Sep-1994 0.96
28-Sep-1994 0.95
29-Sep-1994 0.96
30-Sep-1994 0.96
03-Oct-1994 0.94
04-Oct-1994 0.94
05-Oct-1994 0.95
06-Oct-1994 0.95
07-Oct-1994 0.96
10-Oct-1994 0.97
11-Oct-1994 0.97
12-Oct-1994 0.97
13-Oct-1994 0.96
14-Oct-1994 0.96
17-Oct-1994 0.96
18-Oct-1994 0.97
19-Oct-1994 0.98
20-Oct-1994 0.98
21-Oct-1994 0.98
24-Oct-1994 0.98
25-Oct-1994 0.99
26-Oct-1994 1.00
27-Oct-1994 0.99
28-Oct-1994 1.00
31-Oct-1994 1.00
01-Nov-1994 1.00
02-Nov-1994 1.00
03-Nov-1994 1.00
04-Nov-1994 0.99
07-Nov-1994 0.98
08-Nov-1994 0.99
09-Nov-1994 0.98
10-Nov-1994 0.96
11-Nov-1994 0.96
14-Nov-1994 0.97
15-Nov-1994 0.98
16-Nov-1994 0.98
17-Nov-1994 0.98
18-Nov-1994 0.98
21-Nov-1994 0.99
22-Nov-1994 0.98
23-Nov-1994 0.98
25-Nov-1994 0.98
28-Nov-1994 0.97
29-Nov-1994 0.97
30-Nov-1994 0.96
01-Dec-1994 0.95
02-Dec-1994 0.96
05-Dec-1994 0.97
06-Dec-1994 0.96
07-Dec-1994 0.96
08-Dec-1994 0.95
09-Dec-1994 0.95
12-Dec-1994 0.95
13-Dec-1994 0.95
14-Dec-1994 0.94
15-Dec-1994 0.95
16-Dec-1994 0.95
19-Dec-1994 0.94
20-Dec-1994 0.94
21-Dec-1994 0.95
22-Dec-1994 0.96
23-Dec-1994 0.95
27-Dec-1994 0.96
28-Dec-1994 0.96
29-Dec-1994 0.98
30-Dec-1994 0.97
03-Jan-1995 0.96
04-Jan-1995 0.97
05-Jan-1995 0.97
06-Jan-1995 0.98
09-Jan-1995 1.00
10-Jan-1995 1.02
11-Jan-1995 1.01
12-Jan-1995 1.03
13-Jan-1995 1.03
16-Jan-1995 1.02
17-Jan-1995 1.02
18-Jan-1995 1.02
19-Jan-1995 1.02
20-Jan-1995 1.00
23-Jan-1995 0.99
24-Jan-1995 1.00
25-Jan-1995 0.98
26-Jan-1995 0.96
27-Jan-1995 0.95
30-Jan-1995 0.93
31-Jan-1995 0.92
01-Feb-1995 0.94
02-Feb-1995 0.95
03-Feb-1995 0.96
06-Feb-1995 0.95
07-Feb-1995 0.95
08-Feb-1995 0.96
09-Feb-1995 0.97
10-Feb-1995 0.98
13-Feb-1995 0.98
14-Feb-1995 0.98
15-Feb-1995 0.99
16-Feb-1995 1.00
17-Feb-1995 0.97
21-Feb-1995 0.98
22-Feb-1995 0.97
23-Feb-1995 0.96
24-Feb-1995 0.96
27-Feb-1995 0.96
28-Feb-1995 0.97
01-Mar-1995 0.97
02-Mar-1995 0.97
03-Mar-1995 0.99
06-Mar-1995 0.98
07-Mar-1995 0.98
08-Mar-1995 0.98
09-Mar-1995 0.99
10-Mar-1995 0.99
13-Mar-1995 0.99
14-Mar-1995 0.99
15-Mar-1995 0.98
16-Mar-1995 0.98
17-Mar-1995 0.96
20-Mar-1995 0.96
21-Mar-1995 0.97
22-Mar-1995 0.97
23-Mar-1995 0.97
24-Mar-1995 0.98
27-Mar-1995 0.99
28-Mar-1995 0.99
29-Mar-1995 0.99
30-Mar-1995 1.00
31-Mar-1995 1.00
03-Apr-1995 0.99
04-Apr-1995 0.97
05-Apr-1995 0.98
06-Apr-1995 0.98
07-Apr-1995 0.99
10-Apr-1995 1.00
11-Apr-1995 0.99
12-Apr-1995 1.00
13-Apr-1995 0.99
17-Apr-1995 1.00
18-Apr-1995 1.00
19-Apr-1995 1.01
20-Apr-1995 1.01
21-Apr-1995 1.01
24-Apr-1995 1.02
25-Apr-1995 1.04
26-Apr-1995 1.05
27-Apr-1995 1.06
28-Apr-1995 1.05
01-May-1995 1.04
02-May-1995 1.04
03-May-1995 1.05
04-May-1995 1.05
05-May-1995 1.04
08-May-1995 1.05
09-May-1995 1.05
10-May-1995 1.06
11-May-1995 1.06
12-May-1995 1.10
15-May-1995 1.12
16-May-1995 1.12
17-May-1995 1.13
18-May-1995 1.13
19-May-1995 1.12
22-May-1995 1.13
23-May-1995 1.14
24-May-1995 1.12
25-May-1995 1.11
26-May-1995 1.10
30-May-1995 1.07
31-May-1995 1.06
01-Jun-1995 1.07
02-Jun-1995 1.06
05-Jun-1995 1.06
06-Jun-1995 1.04
07-Jun-1995 1.05
08-Jun-1995 1.06
09-Jun-1995 1.06
12-Jun-1995 1.06
13-Jun-1995 1.06
14-Jun-1995 1.07
15-Jun-1995 1.08
16-Jun-1995 1.08
19-Jun-1995 1.11
20-Jun-1995 1.13
21-Jun-1995 1.10
22-Jun-1995 1.10
23-Jun-1995 1.10
26-Jun-1995 1.10
27-Jun-1995 1.09
28-Jun-1995 1.08
29-Jun-1995 1.09
30-Jun-1995 1.10
03-Jul-1995 1.10
05-Jul-1995 1.11
06-Jul-1995 1.14
07-Jul-1995 1.19
10-Jul-1995 1.19
11-Jul-1995 1.17
12-Jul-1995 1.20
13-Jul-1995 1.19
14-Jul-1995 1.20
17-Jul-1995 1.22
18-Jul-1995 1.17
19-Jul-1995 1.11
20-Jul-1995 1.14
21-Jul-1995 1.13
24-Jul-1995 1.16
25-Jul-1995 1.17
26-Jul-1995 1.17
27-Jul-1995 1.17
28-Jul-1995 1.14
31-Jul-1995 1.12
01-Aug-1995 1.11
02-Aug-1995 1.10
03-Aug-1995 1.11
04-Aug-1995 1.11
07-Aug-1995 1.12
08-Aug-1995 1.13
09-Aug-1995 1.14
10-Aug-1995 1.13
11-Aug-1995 1.15
14-Aug-1995 1.15
15-Aug-1995 1.17
16-Aug-1995 1.20
17-Aug-1995 1.21
18-Aug-1995 1.20
21-Aug-1995 1.16
22-Aug-1995 1.17
23-Aug-1995 1.17
24-Aug-1995 1.15
25-Aug-1995 1.14
28-Aug-1995 1.11
29-Aug-1995 1.12
30-Aug-1995 1.12
31-Aug-1995 1.13
01-Sep-1995 1.13
05-Sep-1995 1.16
06-Sep-1995 1.16
07-Sep-1995 1.17
08-Sep-1995 1.17
11-Sep-1995 1.17
12-Sep-1995 1.17
13-Sep-1995 1.16
14-Sep-1995 1.13
15-Sep-1995 1.10
18-Sep-1995 1.10
19-Sep-1995 1.11
20-Sep-1995 1.10
21-Sep-1995 1.06
22-Sep-1995 1.05
25-Sep-1995 1.04
26-Sep-1995 1.02
27-Sep-1995 1.02
28-Sep-1995 1.06
29-Sep-1995 1.04
02-Oct-1995 1.03
03-Oct-1995 1.00
04-Oct-1995 0.96
05-Oct-1995 0.98
06-Oct-1995 0.97
09-Oct-1995 0.95
10-Oct-1995 0.96
11-Oct-1995 0.98
12-Oct-1995 0.99
13-Oct-1995 0.98
16-Oct-1995 0.98
17-Oct-1995 1.02
18-Oct-1995 1.03
19-Oct-1995 1.02
20-Oct-1995 1.00
23-Oct-1995 1.00
24-Oct-1995 1.00
25-Oct-1995 0.98
26-Oct-1995 1.00
27-Oct-1995 1.02
30-Oct-1995 1.05
31-Oct-1995 1.04
01-Nov-1995 1.03
02-Nov-1995 1.06
03-Nov-1995 1.07
06-Nov-1995 1.06
07-Nov-1995 1.02
08-Nov-1995 1.01
09-Nov-1995 1.04
10-Nov-1995 1.05
13-Nov-1995 1.04
14-Nov-1995 1.00
15-Nov-1995 0.99
16-Nov-1995 1.00
17-Nov-1995 0.99
20-Nov-1995 0.97
21-Nov-1995 0.96
22-Nov-1995 0.97
24-Nov-1995 0.98
27-Nov-1995 0.97
28-Nov-1995 1.00
29-Nov-1995 0.99
30-Nov-1995 0.97
01-Dec-1995 0.97
04-Dec-1995 0.96
05-Dec-1995 0.94
06-Dec-1995 0.93
07-Dec-1995 0.93
08-Dec-1995 0.95
11-Dec-1995 0.95
12-Dec-1995 0.93
13-Dec-1995 0.92
14-Dec-1995 0.89
15-Dec-1995 0.88
18-Dec-1995 0.87
19-Dec-1995 0.92
20-Dec-1995 0.92
21-Dec-1995 0.91
22-Dec-1995 0.91
26-Dec-1995 0.91
27-Dec-1995 0.91
28-Dec-1995 0.89
29-Dec-1995 0.90
02-Jan-1996 0.92
03-Jan-1996 0.90
04-Jan-1996 0.88
05-Jan-1996 0.89
08-Jan-1996 0.89
09-Jan-1996 0.85
10-Jan-1996 0.88
11-Jan-1996 0.90
12-Jan-1996 0.89
15-Jan-1996 0.86
16-Jan-1996 0.86
17-Jan-1996 0.86
18-Jan-1996 0.88
19-Jan-1996 0.90
22-Jan-1996 0.92
23-Jan-1996 0.91
24-Jan-1996 0.90
25-Jan-1996 0.90
26-Jan-1996 0.89
29-Jan-1996 0.88
30-Jan-1996 0.87
31-Jan-1996 0.87
01-Feb-1996 0.89
02-Feb-1996 0.89
05-Feb-1996 0.91
06-Feb-1996 0.93
07-Feb-1996 0.91
08-Feb-1996 0.91
09-Feb-1996 0.91
12-Feb-1996 0.90
13-Feb-1996 0.90
14-Feb-1996 0.90
15-Feb-1996 0.90
16-Feb-1996 0.92
20-Feb-1996 0.94
21-Feb-1996 0.95
22-Feb-1996 0.96
23-Feb-1996 0.96
26-Feb-1996 0.97
27-Feb-1996 0.97
28-Feb-1996 0.96
29-Feb-1996 0.94
01-Mar-1996 0.90
04-Mar-1996 0.88
05-Mar-1996 0.89
06-Mar-1996 0.88
07-Mar-1996 0.87
08-Mar-1996 0.88
11-Mar-1996 0.90
12-Mar-1996 0.90
13-Mar-1996 0.93
14-Mar-1996 0.94
15-Mar-1996 0.95
18-Mar-1996 0.98
19-Mar-1996 0.98
20-Mar-1996 0.94
21-Mar-1996 0.91
22-Mar-1996 0.92
25-Mar-1996 0.90
26-Mar-1996 0.89
27-Mar-1996 0.91
28-Mar-1996 0.91
29-Mar-1996 0.91
01-Apr-1996 0.90
02-Apr-1996 0.90
03-Apr-1996 0.91
04-Apr-1996 0.90
08-Apr-1996 0.91
09-Apr-1996 0.92
10-Apr-1996 0.95
11-Apr-1996 0.95
12-Apr-1996 0.92
15-Apr-1996 0.94
16-Apr-1996 0.96
17-Apr-1996 0.95
18-Apr-1996 0.95
19-Apr-1996 0.94
22-Apr-1996 0.97
23-Apr-1996 0.99
24-Apr-1996 1.02
25-Apr-1996 1.02
26-Apr-1996 1.02
29-Apr-1996 1.00
30-Apr-1996 1.01
01-May-1996 1.01
02-May-1996 1.02
03-May-1996 1.03
06-May-1996 1.04
07-May-1996 1.03
08-May-1996 1.02
09-May-1996 1.03
10-May-1996 1.03
13-May-1996 1.04
14-May-1996 1.04
15-May-1996 1.04
16-May-1996 1.02
17-May-1996 1.02
20-May-1996 1.02
21-May-1996 1.02
22-May-1996 1.01
23-May-1996 1.00
24-May-1996 0.98
28-May-1996 0.99
29-May-1996 0.98
30-May-1996 0.97
31-May-1996 0.99
03-Jun-1996 0.98
04-Jun-1996 0.97
05-Jun-1996 0.96
06-Jun-1996 0.95
07-Jun-1996 0.95
10-Jun-1996 0.95
11-Jun-1996 0.96
12-Jun-1996 0.97
13-Jun-1996 0.96
14-Jun-1996 0.94
17-Jun-1996 0.94
18-Jun-1996 0.93
19-Jun-1996 0.94
20-Jun-1996 0.93
21-Jun-1996 0.93
24-Jun-1996 0.94
25-Jun-1996 0.92
26-Jun-1996 0.91
27-Jun-1996 0.93
28-Jun-1996 0.93
01-Jul-1996 0.94
02-Jul-1996 0.93
03-Jul-1996 0.92
05-Jul-1996 0.92
08-Jul-1996 0.93
09-Jul-1996 0.93
10-Jul-1996 0.91
11-Jul-1996 0.88
12-Jul-1996 0.88
15-Jul-1996 0.86
16-Jul-1996 0.88
17-Jul-1996 0.90
18-Jul-1996 0.90
19-Jul-1996 0.89
22-Jul-1996 0.88
23-Jul-1996 0.85
24-Jul-1996 0.87
25-Jul-1996 0.91
26-Jul-1996 0.92
29-Jul-1996 0.91
30-Jul-1996 0.92
31-Jul-1996 0.93
01-Aug-1996 0.92
02-Aug-1996 0.93
05-Aug-1996 0.92
06-Aug-1996 0.92
07-Aug-1996 0.95
08-Aug-1996 0.95
09-Aug-1996 0.94
12-Aug-1996 0.93
13-Aug-1996 0.92
14-Aug-1996 0.93
15-Aug-1996 0.92
16-Aug-1996 0.92
19-Aug-1996 0.91
20-Aug-1996 0.91
21-Aug-1996 0.91
22-Aug-1996 0.92
23-Aug-1996 0.92
26-Aug-1996 0.92
27-Aug-1996 0.92
28-Aug-1996 0.93
29-Aug-1996 0.93
30-Aug-1996 0.93
03-Sep-1996 0.94
04-Sep-1996 0.94
05-Sep-1996 0.92
06-Sep-1996 0.92
09-Sep-1996 0.92
10-Sep-1996 0.92
11-Sep-1996 0.92
12-Sep-1996 0.93
13-Sep-1996 0.95
16-Sep-1996 0.96
17-Sep-1996 0.98
18-Sep-1996 0.99
19-Sep-1996 0.98
20-Sep-1996 0.99
23-Sep-1996 0.98
24-Sep-1996 0.99
25-Sep-1996 1.00
26-Sep-1996 0.97
27-Sep-1996 0.97
30-Sep-1996 0.96
01-Oct-1996 0.95
02-Oct-1996 0.97
03-Oct-1996 0.95
04-Oct-1996 0.95
07-Oct-1996 0.98
08-Oct-1996 0.96
09-Oct-1996 0.97
10-Oct-1996 0.98
11-Oct-1996 0.99
14-Oct-1996 0.98
15-Oct-1996 0.99
16-Oct-1996 0.99
17-Oct-1996 0.95
18-Oct-1996 0.95
21-Oct-1996 0.94
22-Oct-1996 0.93
23-Oct-1996 0.94
24-Oct-1996 0.94
25-Oct-1996 0.95
28-Oct-1996 0.96
29-Oct-1996 0.93
30-Oct-1996 0.95
31-Oct-1996 0.95
01-Nov-1996 0.95
04-Nov-1996 0.94
05-Nov-1996 0.95
06-Nov-1996 0.94
07-Nov-1996 0.95
08-Nov-1996 0.94
11-Nov-1996 0.96
12-Nov-1996 0.96
13-Nov-1996 0.96
14-Nov-1996 0.97
15-Nov-1996 0.97
18-Nov-1996 0.97
19-Nov-1996 1.00
20-Nov-1996 1.00
21-Nov-1996 0.99
22-Nov-1996 1.00
25-Nov-1996 0.99
26-Nov-1996 0.99
27-Nov-1996 1.00
29-Nov-1996 1.01
02-Dec-1996 1.03
03-Dec-1996 1.03
04-Dec-1996 1.04
05-Dec-1996 1.05
06-Dec-1996 1.04
09-Dec-1996 1.05
10-Dec-1996 1.05
11-Dec-1996 1.06
12-Dec-1996 1.06
13-Dec-1996 1.04
16-Dec-1996 1.03
17-Dec-1996 1.04
18-Dec-1996 1.07
19-Dec-1996 1.05
20-Dec-1996 1.03
23-Dec-1996 1.02
24-Dec-1996 1.03
26-Dec-1996 1.04
27-Dec-1996 1.03
30-Dec-1996 1.02
31-Dec-1996 1.03
02-Jan-1997 1.03
03-Jan-1997 1.05
06-Jan-1997 1.05
07-Jan-1997 1.06
08-Jan-1997 1.06
09-Jan-1997 1.05
10-Jan-1997 1.06
13-Jan-1997 1.06
14-Jan-1997 1.06
15-Jan-1997 1.04
16-Jan-1997 1.04
17-Jan-1997 1.04
20-Jan-1997 1.06
21-Jan-1997 1.06
22-Jan-1997 1.04
23-Jan-1997 1.05
24-Jan-1997 1.04
27-Jan-1997 1.05
28-Jan-1997 1.05
29-Jan-1997 1.04
30-Jan-1997 1.03
31-Jan-1997 1.03
03-Feb-1997 1.03
04-Feb-1997 1.02
05-Feb-1997 1.00
06-Feb-1997 0.98
07-Feb-1997 0.99
10-Feb-1997 0.96
11-Feb-1997 0.96
12-Feb-1997 0.96
13-Feb-1997 0.95
14-Feb-1997 0.95
18-Feb-1997 0.94
19-Feb-1997 0.95
20-Feb-1997 0.95
21-Feb-1997 0.94
24-Feb-1997 0.94
25-Feb-1997 0.95
26-Feb-1997 0.95
27-Feb-1997 0.94
28-Feb-1997 0.96
03-Mar-1997 0.95
04-Mar-1997 0.98
05-Mar-1997 0.95
06-Mar-1997 0.95
07-Mar-1997 0.93
10-Mar-1997 0.92
11-Mar-1997 0.93
12-Mar-1997 0.94
13-Mar-1997 0.95
14-Mar-1997 0.96
17-Mar-1997 0.93
18-Mar-1997 0.93
19-Mar-1997 0.90
20-Mar-1997 0.93
21-Mar-1997 0.91
24-Mar-1997 0.90
25-Mar-1997 0.90
26-Mar-1997 0.94
27-Mar-1997 0.94
31-Mar-1997 0.97
01-Apr-1997 0.95
02-Apr-1997 0.95
03-Apr-1997 0.96
04-Apr-1997 0.96
07-Apr-1997 0.98
08-Apr-1997 1.00
09-Apr-1997 1.01
10-Apr-1997 0.98
11-Apr-1997 0.98
14-Apr-1997 0.98
15-Apr-1997 0.95
16-Apr-1997 0.94
17-Apr-1997 0.95
18-Apr-1997 0.95
21-Apr-1997 0.94
22-Apr-1997 0.93
23-Apr-1997 0.96
24-Apr-1997 0.98
25-Apr-1997 0.96
28-Apr-1997 0.96
29-Apr-1997 0.97
30-Apr-1997 0.99
01-May-1997 1.00
02-May-1997 1.01
05-May-1997 1.01
06-May-1997 0.99
07-May-1997 1.01
08-May-1997 1.02
09-May-1997 1.01
12-May-1997 1.00
13-May-1997 0.99
14-May-1997 0.98
15-May-1997 0.99
16-May-1997 0.98
19-May-1997 0.97
20-May-1997 1.00
21-May-1997 1.02
22-May-1997 1.02
23-May-1997 1.02
27-May-1997 1.04
28-May-1997 1.05
29-May-1997 1.04
30-May-1997 1.01
02-Jun-1997 1.02
03-Jun-1997 0.99
04-Jun-1997 0.98
05-Jun-1997 0.99
06-Jun-1997 0.98
09-Jun-1997 0.98
10-Jun-1997 0.97
11-Jun-1997 0.96
12-Jun-1997 0.94
13-Jun-1997 0.94
16-Jun-1997 0.96
17-Jun-1997 0.98
18-Jun-1997 0.98
19-Jun-1997 0.96
20-Jun-1997 0.95
23-Jun-1997 0.96
24-Jun-1997 0.94
25-Jun-1997 0.94
26-Jun-1997 0.94
27-Jun-1997 0.92
30-Jun-1997 0.93
01-Jul-1997 0.92
02-Jul-1997 0.93
03-Jul-1997 0.93
07-Jul-1997 0.94
08-Jul-1997 0.95
09-Jul-1997 0.98
10-Jul-1997 0.97
11-Jul-1997 0.98
14-Jul-1997 1.00
15-Jul-1997 1.02
16-Jul-1997 1.07
17-Jul-1997 1.05
18-Jul-1997 1.05
21-Jul-1997 1.04
22-Jul-1997 1.04
23-Jul-1997 1.05
24-Jul-1997 1.05
25-Jul-1997 1.06
28-Jul-1997 1.07
29-Jul-1997 1.06
30-Jul-1997 1.07
31-Jul-1997 1.07
01-Aug-1997 1.09
04-Aug-1997 1.10
05-Aug-1997 1.11
06-Aug-1997 1.12
07-Aug-1997 1.13
08-Aug-1997 1.13
11-Aug-1997 1.14
12-Aug-1997 1.15
13-Aug-1997 1.17
14-Aug-1997 1.15
15-Aug-1997 1.16
18-Aug-1997 1.15
19-Aug-1997 1.16
20-Aug-1997 1.15
21-Aug-1997 1.15
22-Aug-1997 1.14
25-Aug-1997 1.16
26-Aug-1997 1.16
27-Aug-1997 1.15
28-Aug-1997 1.14
29-Aug-1997 1.14
02-Sep-1997 1.13
03-Sep-1997 1.13
04-Sep-1997 1.13
05-Sep-1997 1.13
08-Sep-1997 1.14
09-Sep-1997 1.14
10-Sep-1997 1.14
11-Sep-1997 1.14
12-Sep-1997 1.11
15-Sep-1997 1.08
16-Sep-1997 1.09
17-Sep-1997 1.10
18-Sep-1997 1.10
19-Sep-1997 1.10
22-Sep-1997 1.09
23-Sep-1997 1.10
24-Sep-1997 1.10
25-Sep-1997 1.10
26-Sep-1997 1.09
29-Sep-1997 1.09
30-Sep-1997 1.09
01-Oct-1997 1.09
02-Oct-1997 1.09
03-Oct-1997 1.09
06-Oct-1997 1.08
07-Oct-1997 1.07
08-Oct-1997 1.07
09-Oct-1997 1.08
10-Oct-1997 1.08
13-Oct-1997 1.08
14-Oct-1997 1.06
15-Oct-1997 1.05
16-Oct-1997 1.04
17-Oct-1997 1.03
20-Oct-1997 1.03
21-Oct-1997 1.03
22-Oct-1997 1.01
23-Oct-1997 0.99
24-Oct-1997 0.98
27-Oct-1997 0.98
28-Oct-1997 0.99
29-Oct-1997 0.98
30-Oct-1997 0.95
31-Oct-1997 0.97
03-Nov-1997 0.98
04-Nov-1997 0.98
05-Nov-1997 0.97
06-Nov-1997 0.96
07-Nov-1997 0.96
10-Nov-1997 0.95
11-Nov-1997 0.95
12-Nov-1997 0.94
13-Nov-1997 0.94
14-Nov-1997 0.94
17-Nov-1997 0.97
18-Nov-1997 0.96
19-Nov-1997 0.95
20-Nov-1997 0.96
21-Nov-1997 0.94
24-Nov-1997 0.94
25-Nov-1997 0.94
26-Nov-1997 0.95
28-Nov-1997 0.96
01-Dec-1997 0.97
02-Dec-1997 0.95
03-Dec-1997 0.94
04-Dec-1997 0.92
05-Dec-1997 0.95
08-Dec-1997 0.96
09-Dec-1997 0.92
10-Dec-1997 0.90
11-Dec-1997 0.88
12-Dec-1997 0.87
15-Dec-1997 0.85
16-Dec-1997 0.86
17-Dec-1997 0.86
18-Dec-1997 0.85
19-Dec-1997 0.86
22-Dec-1997 0.86
23-Dec-1997 0.84
24-Dec-1997 0.85
26-Dec-1997 0.85
29-Dec-1997 0.86
30-Dec-1997 0.85
31-Dec-1997 0.86
02-Jan-1998 0.88
05-Jan-1998 0.87
06-Jan-1998 0.87
07-Jan-1998 0.86
08-Jan-1998 0.86
09-Jan-1998 0.86
12-Jan-1998 0.84
13-Jan-1998 0.86
14-Jan-1998 0.85
15-Jan-1998 0.86
16-Jan-1998 0.85
20-Jan-1998 0.83
21-Jan-1998 0.84
22-Jan-1998 0.84
23-Jan-1998 0.84
26-Jan-1998 0.84
27-Jan-1998 0.84
28-Jan-1998 0.85
29-Jan-1998 0.85
30-Jan-1998 0.86
02-Feb-1998 0.87
03-Feb-1998 0.89
04-Feb-1998 0.90
05-Feb-1998 0.90
06-Feb-1998 0.91
09-Feb-1998 0.90
10-Feb-1998 0.90
11-Feb-1998 0.90
12-Feb-1998 0.90
13-Feb-1998 0.90
17-Feb-1998 0.89
18-Feb-1998 0.89
19-Feb-1998 0.90
20-Feb-1998 0.90
23-Feb-1998 0.90
24-Feb-1998 0.89
25-Feb-1998 0.90
26-Feb-1998 0.91
27-Feb-1998 0.90
02-Mar-1998 0.89
03-Mar-1998 0.88
04-Mar-1998 0.89
05-Mar-1998 0.86
06-Mar-1998 0.86
09-Mar-1998 0.83
10-Mar-1998 0.83
11-Mar-1998 0.83
12-Mar-1998 0.85
13-Mar-1998 0.85
16-Mar-1998 0.85
17-Mar-1998 0.84
18-Mar-1998 0.85
19-Mar-1998 0.85
20-Mar-1998 0.84
23-Mar-1998 0.85
24-Mar-1998 0.86
25-Mar-1998 0.89
26-Mar-1998 0.90
27-Mar-1998 0.90
30-Mar-1998 0.89
31-Mar-1998 0.89
01-Apr-1998 0.89
02-Apr-1998 0.88
03-Apr-1998 0.87
06-Apr-1998 0.85
07-Apr-1998 0.84
08-Apr-1998 0.86
09-Apr-1998 0.87
13-Apr-1998 0.86
14-Apr-1998 0.88
15-Apr-1998 0.91
16-Apr-1998 0.91
17-Apr-1998 0.84
20-Apr-1998 0.89
21-Apr-1998 0.91
22-Apr-1998 0.93
23-Apr-1998 0.92
24-Apr-1998 0.92
27-Apr-1998 0.93
28-Apr-1998 0.92
29-Apr-1998 0.93
30-Apr-1998 0.91
01-May-1998 0.93
04-May-1998 0.92
05-May-1998 0.93
06-May-1998 0.94
07-May-1998 0.93
08-May-1998 0.93
11-May-1998 0.92
12-May-1998 0.93
13-May-1998 0.93
14-May-1998 0.92
15-May-1998 0.91
18-May-1998 0.89
19-May-1998 0.89
20-May-1998 0.87
21-May-1998 0.88
22-May-1998 0.88
26-May-1998 0.88
27-May-1998 0.88
28-May-1998 0.88
29-May-1998 0.88
01-Jun-1998 0.86
02-Jun-1998 0.88
03-Jun-1998 0.87
04-Jun-1998 0.87
05-Jun-1998 0.86
08-Jun-1998 0.86
09-Jun-1998 0.86
10-Jun-1998 0.84
11-Jun-1998 0.84
12-Jun-1998 0.83
15-Jun-1998 0.83
16-Jun-1998 0.84
17-Jun-1998 0.83
18-Jun-1998 0.82
19-Jun-1998 0.83
22-Jun-1998 0.85
23-Jun-1998 0.87
24-Jun-1998 0.87
25-Jun-1998 0.87
26-Jun-1998 0.87
29-Jun-1998 0.88
30-Jun-1998 0.89
01-Jul-1998 0.90
02-Jul-1998 0.87
06-Jul-1998 0.87
07-Jul-1998 0.87
08-Jul-1998 0.89
09-Jul-1998 0.90
10-Jul-1998 0.89
13-Jul-1998 0.91
14-Jul-1998 0.89
15-Jul-1998 0.91
16-Jul-1998 0.90
17-Jul-1998 0.91
20-Jul-1998 0.92
21-Jul-1998 0.92
22-Jul-1998 0.91
23-Jul-1998 0.92
24-Jul-1998 0.90
27-Jul-1998 0.91
28-Jul-1998 0.92
29-Jul-1998 0.91
30-Jul-1998 0.92
31-Jul-1998 0.92
03-Aug-1998 0.92
04-Aug-1998 0.92
05-Aug-1998 0.92
06-Aug-1998 0.94
07-Aug-1998 0.94
10-Aug-1998 0.93
11-Aug-1998 0.92
12-Aug-1998 0.93
13-Aug-1998 0.91
14-Aug-1998 0.92
17-Aug-1998 0.92
18-Aug-1998 0.93
19-Aug-1998 0.92
20-Aug-1998 0.93
21-Aug-1998 0.91
24-Aug-1998 0.90
25-Aug-1998 0.90
26-Aug-1998 0.88
27-Aug-1998 0.87
28-Aug-1998 0.86
31-Aug-1998 0.85
01-Sep-1998 0.86
02-Sep-1998 0.87
03-Sep-1998 0.84
04-Sep-1998 0.85
08-Sep-1998 0.86
09-Sep-1998 0.86
10-Sep-1998 0.86
11-Sep-1998 0.87
14-Sep-1998 0.86
15-Sep-1998 0.85
16-Sep-1998 0.87
17-Sep-1998 0.86
18-Sep-1998 0.86
21-Sep-1998 0.86
22-Sep-1998 0.85
23-Sep-1998 0.87
24-Sep-1998 0.86
25-Sep-1998 0.88
28-Sep-1998 0.88
29-Sep-1998 0.87
30-Sep-1998 0.85
01-Oct-1998 0.84
02-Oct-1998 0.84
05-Oct-1998 0.79
06-Oct-1998 0.79
07-Oct-1998 0.80
08-Oct-1998 0.80
09-Oct-1998 0.84
12-Oct-1998 0.85
13-Oct-1998 0.82
14-Oct-1998 0.83
15-Oct-1998 0.85
16-Oct-1998 0.84
19-Oct-1998 0.85
20-Oct-1998 0.85
21-Oct-1998 0.87
22-Oct-1998 0.87
23-Oct-1998 0.86
26-Oct-1998 0.88
27-Oct-1998 0.88
28-Oct-1998 0.89
29-Oct-1998 0.88
30-Oct-1998 0.88
02-Nov-1998 0.88
03-Nov-1998 0.87
04-Nov-1998 0.90
05-Nov-1998 0.89
06-Nov-1998 0.89
09-Nov-1998 0.91
10-Nov-1998 0.91
11-Nov-1998 0.93
12-Nov-1998 0.92
13-Nov-1998 0.92
16-Nov-1998 0.91
17-Nov-1998 0.92
18-Nov-1998 0.91
19-Nov-1998 0.91
20-Nov-1998 0.90
23-Nov-1998 0.91
24-Nov-1998 0.92
25-Nov-1998 0.92
27-Nov-1998 0.93
30-Nov-1998 0.92
01-Dec-1998 0.95
02-Dec-1998 0.93
03-Dec-1998 0.94
04-Dec-1998 0.95
07-Dec-1998 0.98
08-Dec-1998 0.97
09-Dec-1998 0.98
10-Dec-1998 0.98
11-Dec-1998 0.98
14-Dec-1998 0.97
15-Dec-1998 0.99
16-Dec-1998 0.98
17-Dec-1998 0.99
18-Dec-1998 1.03
21-Dec-1998 1.07
22-Dec-1998 1.04
23-Dec-1998 1.05
24-Dec-1998 1.05
28-Dec-1998 1.05
29-Dec-1998 1.01
30-Dec-1998 1.01
31-Dec-1998 1.01
04-Jan-1999 1.03
05-Jan-1999 1.05
06-Jan-1999 1.07
07-Jan-1999 1.08
08-Jan-1999 1.10
11-Jan-1999 1.15
12-Jan-1999 1.13
13-Jan-1999 1.12
14-Jan-1999 1.11
15-Jan-1999 1.14
19-Jan-1999 1.18
20-Jan-1999 1.18
21-Jan-1999 1.17
22-Jan-1999 1.16
25-Jan-1999 1.18
26-Jan-1999 1.19
27-Jan-1999 1.15
28-Jan-1999 1.17
29-Jan-1999 1.18
01-Feb-1999 1.17
02-Feb-1999 1.14
03-Feb-1999 1.15
04-Feb-1999 1.11
05-Feb-1999 1.10
08-Feb-1999 1.12
09-Feb-1999 1.10
10-Feb-1999 1.10
11-Feb-1999 1.13
12-Feb-1999 1.08
16-Feb-1999 1.06
17-Feb-1999 1.04
18-Feb-1999 1.04
19-Feb-1999 1.05
22-Feb-1999 1.06
23-Feb-1999 1.07
24-Feb-1999 1.06
25-Feb-1999 1.06
26-Feb-1999 1.01
01-Mar-1999 1.02
02-Mar-1999 1.00
03-Mar-1999 1.01
04-Mar-1999 1.00
05-Mar-1999 1.00
08-Mar-1999 1.03
09-Mar-1999 1.03
10-Mar-1999 1.03
11-Mar-1999 1.02
12-Mar-1999 1.00
15-Mar-1999 1.00
16-Mar-1999 1.01
17-Mar-1999 1.03
18-Mar-1999 1.04
19-Mar-1999 1.03
22-Mar-1999 1.02
23-Mar-1999 1.02
24-Mar-1999 1.04
25-Mar-1999 1.06
26-Mar-1999 1.07
29-Mar-1999 1.08
30-Mar-1999 1.08
31-Mar-1999 1.09
01-Apr-1999 1.10
05-Apr-1999 1.14
06-Apr-1999 1.15
07-Apr-1999 1.14
08-Apr-1999 1.12
09-Apr-1999 1.11
12-Apr-1999 1.06
13-Apr-1999 1.04
14-Apr-1999 1.07
15-Apr-1999 1.12
16-Apr-1999 1.10
19-Apr-1999 1.11
20-Apr-1999 1.10
21-Apr-1999 1.09
22-Apr-1999 1.11
23-Apr-1999 1.14
26-Apr-1999 1.19
27-Apr-1999 1.16
28-Apr-1999 1.17
29-Apr-1999 1.17
30-Apr-1999 1.19
03-May-1999 1.17
04-May-1999 1.16
05-May-1999 1.16
06-May-1999 1.12
07-May-1999 1.14
10-May-1999 1.19
11-May-1999 1.20
12-May-1999 1.21
13-May-1999 1.19
14-May-1999 1.19
17-May-1999 1.21
18-May-1999 1.23
19-May-1999 1.22
20-May-1999 1.19
21-May-1999 1.20
24-May-1999 1.21
25-May-1999 1.20
26-May-1999 1.24
27-May-1999 1.22
28-May-1999 1.21
01-Jun-1999 1.20
02-Jun-1999 1.22
03-Jun-1999 1.19
04-Jun-1999 1.19
07-Jun-1999 1.23
08-Jun-1999 1.21
09-Jun-1999 1.24
10-Jun-1999 1.26
11-Jun-1999 1.25
14-Jun-1999 1.25
15-Jun-1999 1.25
16-Jun-1999 1.30
17-Jun-1999 1.29
18-Jun-1999 1.31
21-Jun-1999 1.36
22-Jun-1999 1.32
23-Jun-1999 1.35
24-Jun-1999 1.30
25-Jun-1999 1.31
28-Jun-1999 1.33
29-Jun-1999 1.31
30-Jun-1999 1.29
The recent strength in technology stocks has resulted in P/E ratios that are two
or three times their normal levels. Given that our earnings growth expectations
have not changed, we are using this opportunity to reduce the Fund's exposure to
stocks in technology-related industries. We have used some of the profits to add
to our healthcare holdings, primarily through increased exposure to the major
pharmaceutical companies. We have confidence that these companies will continue
to produce strong earnings growth while the current stock prices, which are
somewhat depressed resulting from investor concerns about potential problems
related to Medicare reform, represent a good relative value.
LARGEST SECTOR EXPOSURES
Healthcare 19.5%
Consumer Staples 13.5%
Telecommunications 11.4%
Financial 10.8%
Information Services & Software 12.0%
We are also finding opportunities to buy attractive stocks in the consumer
staples area. Many investors are currently staying away from global consumer
growth stocks because they have recently had difficulty maintaining historical
growth rates. We believe these companies are well positioned to regain their
former "darling" status as the world economy strengthens, and have been adding
to positions.
(LOGO)
FRONTEGRA FUNDS
THE FUND'S TEN LARGEST HOLDINGS (6/30/99)
NAME TICKER POSITION SIZE
-------------------------------------------------------
Bristol-Myers BMY 4.5%
Tyco International TYC 3.8%
First Data Corp. FDC 3.6%
Microsoft MSFT 3.6%
Eli Lilly LLY 3.5%
Schering-Plough SGP 3.3%
Cendant CD 2.9%
Dayton Hudson DH 2.9%
Nortel Networks NT 2.8%
Intel INTC 2.8%
SUMMARY
We are encouraged by the strong recent performance of the Fund and continue to
believe that we will be able to outperform by remaining true to our investment
objectives regardless of the valuation levels of the overall market or any one
sector. The portfolio is positioned defensively versus the index to avoid
losses resulting from a correction in the sectors that we believe are
excessively priced - namely the high P/E technology and Internet related
companies. In addition, we have taken significant positions in healthcare and
consumer staple companies, which we believe are poised for strong relative
performance over the foreseeable future.
We thank you once again for your continued support and we encourage you to
e-mail or write with comments or questions about your Fund.
Sincerely,
/s/Daniel T. Murphy, CFA /s/Brian A. Hellmer, CFA /s/Stephen L. Hawk, Ph.D.
Daniel T. Murphy, CFA Brian A. Hellmer, CFA Stephen L. Hawk, Ph.D.
President and Chief Senior Vice President and Chairman and
Investment Officer Director of Research Chief Executive Officer
Northern Capital Northern Capital Northern Capital
Management Management Management
[email protected] [email protected] [email protected]
INVESTMENT HIGHLIGHTS
Growth of a $100,000 Investment
Frontegra S&P 500/R Russell 1000
Growth Stock Growth
Fund Index Index
--------- ----------- ------------
3/18/98 100,000 100,000 100,000
3/31/98 101,100 101,523 101,743
4/30/98 99,200 102,544 103,151
5/31/98 98,000 100,782 100,224
6/30/98 102,000 104,875 106,362
7/31/98 97,300 103,758 105,658
8/31/98 81,100 88,757 89,801
9/30/98 85,800 94,443 96,700
10/31/98 92,900 102,125 104,471
11/30/98 99,600 108,315 112,418
12/31/98 108,939 114,556 122,555
1/31/99 116,148 119,346 129,752
2/28/99 110,841 115,637 123,825
3/31/99 113,144 120,264 130,347
4/30/99 115,046 124,922 130,513
5/31/99 112,543 121,972 126,501
6/30/99 119,452 128,742 135,363
- ----------------------------
Portfolio Total Return
FOR THE PERIOD ENDED 6/30/99
- ----------------------------
ONE YEAR 17.11%
AVERAGE ANNUAL
SINCE COMMENCEMENT 14.84%
- ----------------------------
This chart assumes an initial gross investment of $100,000 made on 3/18/98
(commencement of operations). Past performance is not predictive of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than the original cost. In the absence
of existing fee waivers, total return would be reduced.
The S&P 500 Stock Index includes 500 common stocks, most of which are listed on
The New York Stock Exchange. The Index is a market capitalization-weighted index
representing approximately two-thirds of the total market value of all domestic
common stocks.
The Russell 1000 Growth Index is comprised of those securities in the Russell
1000 Index which have higher price-to-book ratios and higher forecasted growth
values. The Russell 1000 Index is comprised of the 1000 largest securities in
the Russell 3000 Index. The Russell 3000 Index is comprised of the 3000 largest
U.S. companies based on market capitalization.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
SCHEDULE OF INVESTMENTS
June 30, 1999
Number of Shares Value
- ---------------------------------------------------------------------------
COMMON STOCKS 99.4%
Aerospace 1.5%
1,575 The Boeing Co. $69,595
---------
Consumer Staples 13.5%
1,050 Avery Dennison Corp. 63,394
1,950 Bestfoods 96,525
825 The Clorox Co. 88,120
800 The Coca-Cola Co. 50,000
1,775 Fort James Corp. 67,228
1,725 Gillette Co. 70,725
3,350 Kroger Co.<F1> 93,591
4,100 Sara Lee Corp. 93,019
---------
622,602
---------
Financial 10.8%
362 American International Group, Inc. 42,377
1,000 The Chase Manhattan Corp. 86,625
1,977 Citigroup Inc. 93,908
755 Fannie Mae 51,623
2,200 Household International, Inc. 104,225
1,675 MBNA Corp. 51,297
2,000 Washington Mutual, Inc. 70,750
---------
500,805
---------
Healthcare 19.5%
2,500 Abbott Laboratories 113,750
1,550 Baxter International Inc. 93,969
2,950 Bristol-Meyers Squibb Co. 207,791
2,250 Eli Lilly and Co. 161,156
1,400 Merck & Co. 103,600
650 Pfizer Inc. 71,337
2,850 Schering-Plough Corp. 151,050
---------
902,653
---------
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
SCHEDULE OF INVESTMENTS (continued)
June 30, 1999
Number of Shares Value
- ---------------------------------------------------------------------------
Information Services & Software 12.0%
1,750 Dell Computer Corp.<F1> $ 64,750
1,250 EMC Corp.<F1> 68,750
3,425 First Data Corp. 167,611
1,850 Microsoft Corp.<F1> 166,847
2,262 Oracle Corp.<F1> 83,977
---------
551,935
---------
Leisure & Entertainment 4.8%
2,434 AT&T Corp-Liberty Media Group<F1> 89,449
925 Time Warner, Inc. 67,987
2,150 The Walt Disney Company 66,247
---------
223,683
---------
Multi-Sector Companies 7.7%
775 E. I. Du Pont de Nemours and Co. 52,942
1,125 General Electric Co. 127,125
1,850 Tyco International Ltd. 175,288
---------
355,355
---------
Oil & Gas 1.3%
975 Royal Dutch Petroleum Co. 58,744
---------
Retailing & Restaurants 10.6%
1,750 CVS Corp. 88,812
6,605 Cendant Corp.<F1> 135,403
1,000 Costco Companies, Inc.<F1> 80,062
2,075 Dayton Hudson Corp. 134,875
750 The Home Depot, Inc. 48,328
---------
487,480
---------
Technology 4.8%
2,155 Intel Corp. 128,222
1,400 Lucent Technologies Inc. 94,413
---------
222,635
---------
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
SCHEDULE OF INVESTMENTS (continued)
June 30, 1999
Number of Shares Value
- ---------------------------------------------------------------------------
Telecommunications 11.4%
1,550 Ameritech Corp. $113,925
1,793 AT&T Corp. 100,072
1,650 CenturyTel, Inc. 65,587
1,225 Motorola, Inc. 116,069
1,500 Nortel Networks Corp. 130,219
---------
525,872
---------
Waste Services 1.5%
1,275 Waste Management, Inc. 68,531
---------
TOTAL COMMON STOCKS
(cost $4,013,565) 4,589,890
---------
Principal Amount
- ----------------
SHORT-TERM INVESTMENT 1.8%
$82,554 UMB Bank Money Market Fiduciary 82,554
---------
TOTAL SHORT-TERM INVESTMENT
(cost $82,554) 82,554
---------
TOTAL INVESTMENTS 101.2%
(cost $4,096,119) 4,672,444
Liabilities, less Other Assets (1.2)% (53,205)
---------
NET ASSETS 100.0% $4,619,239
==========
<F1> Non-income producing
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1999
ASSETS:
Investments at value (cost $4,096,119) $4,672,444
Interest and dividends receivable 4,488
Receivable from adviser 18,470
----------
Total assets 4,695,402
----------
LIABILITIES:
Payable for investments purchased 52,433
Accrued investment advisory fee 2,934
Accrued expenses 20,796
----------
Total liabilities 76,163
----------
NET ASSETS $4,619,239
==========
NET ASSETS CONSIST OF:
Paid in capital $4,030,170
Accumulated net investment income 3,778
Accumulated net realized gain on investments 8,966
Net unrealized appreciation on investments 576,325
----------
NET ASSETS $4,619,239
==========
CAPITAL STOCK, $0.01 PAR VALUE
Authorized 100,000,000
Issued and outstanding 387,268
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $11.93
======
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
STATEMENTS OF OPERATIONS
EIGHT MONTHS ENDED PERIOD ENDED
JUNE 30, OCTOBER 31,
1999 1998<F1>
------------ ------------
INVESTMENT INCOME:
Dividends (net of $234 and $23 foreign
withholding taxes, respectively) $20,771 $7,599
Interest 1,616 1,964
-------- --------
22,387 9,563
-------- --------
EXPENSES:
Fund administration and accounting fees 38,102 35,105
Investment advisory fees 18,609 7,231
Audit fees 10,001 6,549
Legal fees 9,541 5,072
Shareholder servicing 8,567 10,390
Federal and state registration fees 6,672 3,560
Custody fees 5,665 6,940
Reports to shareholders 3,786 5,269
Directors' fees and related expenses 2,000 333
Pricing 1,173 1,340
Insurance 556 -
Other 423 601
-------- --------
Total expenses before waiver 105,095 82,390
Waiver and reimbursement of
expenses by adviser (86,486) (75,313)
-------- --------
Net expenses 18,609 7,077
-------- --------
NET INVESTMENT INCOME 3,778 2,486
-------- --------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS:
Net realized gains (losses) on investments 104,466 (95,500)
Change in net unrealized appreciation/
depreciation on investments 659,763 (83,438)
-------- --------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS 764,229 (178,938)
-------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $768,007 $(176,452)
======== ==========
<F1> Commenced operations on March 18, 1998
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS
EIGHT MONTHS ENDED PERIOD ENDED
JUNE 30, OCTOBER 31,
1999 1998<F1>
------------ ------------
OPERATIONS:
Net investment income $3,778 $2,486
Net realized gains (losses) on investments 104,466 (95,500)
Change in net unrealized
appreciation/depreciation on investments 659,763 (83,438)
---------- ----------
Net increase (decrease) in net assets
resulting from operations 768,007 (176,452)
---------- ----------
DISTRIBUTIONS PAID FROM:
Net investment income (3,813) -
---------- ----------
Net decrease in net assets resulting
from distributions paid (3,813) -
---------- ----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,563,725 2,533,745
Shares issued to holders in
reinvestment of distributions 3,813 -
Shares redeemed (55,261) (14,525)
---------- ----------
Net increase in net assets resulting from
capital share transactions 1,512,277 2,519,220
---------- ----------
TOTAL INCREASE IN NET ASSETS 2,276,471 2,342,768
---------- ----------
NET ASSETS:
Beginning of period 2,342,768 -
---------- ----------
End of period (includes undistributed net
investment income of $3,778 and
$3,813, respectively) $4,619,239 $2,342,768
========== ==========
<F1> Commenced operations on March 18, 1998
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
FINANCIAL HIGHLIGHTS
EIGHT MONTHS ENDED PERIOD ENDED
JUNE 30, OCTOBER 31,
1999 1998<F1>
------------ ------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.29 $10.00
INCOME (LOSS) FROM
INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.01
Net realized and unrealized gains
(losses) on investments 2.64 (0.72)
-------- --------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS 2.65 (0.71)
-------- --------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) -
-------- --------
TOTAL DISTRIBUTIONS PAID (0.01) -
-------- --------
NET ASSET VALUE, END OF PERIOD $11.93 $9.29
======== ========
TOTAL RETURN<F2> 28.58% (7.10)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (in thousands) $4,619 $2,343
Ratio of expenses to average
net assets<F3><F4> 0.80% 0.80%
Ratio of net investment income to average
net assets<F3><F4> 0.16% 0.28%
Portfolio turnover rate<F2> 106% 67%
<F1> Commenced operations on March 18, 1998
<F2> Not annualized for periods less than a full year
<F3> Net of waivers and reimbursements by Adviser. Without waivers and
reimbursements of expenses, the ratio of expenses to average net assets
would have been 4.52% and 9.23%, and the ratio of net investment loss to
average net assets would have been (3.56)% and (8.15)% for the periods
ended June 30, 1999 and October 31, 1998, respectively.
<F4> Annualized
See notes to financial statements.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(1) ORGANIZATION
Frontegra Funds, Inc. ("Frontegra") was incorporated on May 24, 1996, as a
Maryland corporation and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company
issuing its shares in series, each series representing a distinct portfolio
with its own investment objectives and policies. Frontegra consists of
three series: the Frontegra Growth Fund (the "Fund"), the Frontegra Total
Return Bond Fund and the Frontegra Opportunity Fund. The Fund is sub-
advised by Northern Capital Management, Inc. The Fund commenced operations
on March 18, 1998.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
(a) Investment Valuation
Securities (other than short-term instruments) for which market
quotations are readily available are valued at the last trade price on
the national securities exchange on which such securities are
primarily traded. Securities for which there were no transactions on a
given day or securities not listed on a national securities exchange
are valued at the most recent bid price. Securities maturing within 60
days or less when purchased are valued by the amortized cost method.
Any securities for which market quotations are not readily available
are valued at their fair value as determined in good faith by Northern
Capital Management, Inc. pursuant to guidelines established by the
Board of Directors.
(b) Federal Income Taxes
No federal income tax provision has been made since the Fund intends
to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all
investment company net taxable income and net capital gains to
shareholders in a manner which results in no tax cost to the Fund.
(c) Distributions to Shareholders
Dividends from net investment income and distributions of net realized
gains, if any, will be declared and paid at least annually.
Distributions to shareholders are recorded on the ex-dividend date.
The character of distributions made during the period from net
investment income or net realized gains may differ from the
characterization for federal income tax purposes due to differences in
the recognition of income, expense and gain items for financial
statement and tax purposes. Where appropriate, reclassifications
between net asset accounts are made for such differences that are
permanent in nature.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1999
(d) Other
Investment transactions are accounted for on the trade date. The Fund
determines the gain or loss realized from investment transactions by
comparing the original cost of the security lot sold with the net sale
proceeds. Dividend income is recognized on the ex-dividend date and
interest income is recognized on an accrual basis.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements, and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
(3) INVESTMENT ADVISER
The Fund has an agreement with Frontegra Asset Management, Inc. (the
"Adviser"), with whom certain officers and directors of the Fund are
affiliated, to furnish investment advisory services to the Fund. Under the
terms of this agreement, the Fund will pay the Adviser a monthly fee at the
annual rate of 0.80% of the Fund's average daily net assets. Pursuant to an
expense cap agreement dated February 26, 1999, the Adviser has agreed to
waive its management fee and/or reimburse the Fund's operating expenses
(exclusive of brokerage, interest, taxes and extraordinary expenses) to
ensure that the Fund's operating expenses do not exceed 0.80% of the Fund's
average daily net assets. The term of this expense cap agreement is twelve
months.
The Adviser has retained Northern Capital Management, Inc. as the Fund's
sub-adviser. Northern Capital Management has full discretion over all
investment decisions on a day-to-day basis.
(4) CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Fund were as follows:
EIGHT MONTHS ENDED PERIOD ENDED
JUNE 30, 1999 OCTOBER 31, 1998<F1>
------------- -------------
Shares sold 139,727 253,765
Shares issued to holders in
reinvestment of distributions 351 -
Shares redeemed (5,018) (1,557)
-------- --------
Net increase in shares outstanding 135,060 252,208
======== ========
<F1> Commenced operations on March 18, 1998
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 1999
(5) INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the eight months ended June 30, 1999, are
summarized below:
Purchases $5,157,143
Sales $3,654,253
There were no purchases or sales of U.S. government securities.
At June 30, 1999, gross unrealized appreciation and depreciation of
investments, based on cost for federal income tax purposes of $4,117,205,
were as follows:
Appreciation $678,631
Depreciation (123,392)
--------
Net appreciation on investments $555,239
========
For the eight months ended June 30, 1999, 100% of dividends paid from
taxable income (including short-term capital gains) qualify for the
dividends received deduction available to corporate shareholders.
(LOGO)
FRONTEGRA FUNDS
Frontegra Growth Fund
REPORT OF INDEPENDENT AUDITORS
June 30, 1999
To the Board of Directors and Shareholders of the Frontegra Funds, Inc./Fontegra
Growth Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of the Frontegra Growth Fund (the "Fund") as of
June 30, 1999, and the related statements of operations for the eight months
then ended and period ended October 31, 1998, the statements of changes in net
assets and the financial highlights for the periods indicated therein. 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 generally accepted auditing
standards. 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 investments owned as of
June 30, 1999, 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 the
Frontegra Growth Fund at June 30, 1999, the results of its operations for the
eight months then ended and period ended October 31, 1998, the statements of
changes in net assets and the financial highlights for the periods indicated
therein, in conformity with generally accepted accounting principles.
/s/Ernst & Young, LLP
Chicago, Illinois
July 21, 1999
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FRONTEGRA FUNDS, INC.
c/o Sunstone Financial Group, Inc.
P.O. Box 2142, Milwaukee, Wisconsin 53201-2142
FG-408-0899
