<PAGE> 1
THE FLEX-FUNDS
MANAGING MARKET RISK.(SM)
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* *
* SEMIANNUAL REPORT *
* 1995 *
* *
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The Money Market Fund
The Muirfield Fund
The Growth Fund
The Short-Term Global Income Fund
The Bond Fund
The Total Return Utilities Fund
------------------------------------------
(LOGO)
Managing Market Risk.sm
* * * * *
THE MUIRFIELD FUND HAS RECEIVED
A 5-STAR RATING FROM
MORNINGSTAR, INC.
See inside front cover
for more information.
<PAGE> 2
<TABLE>
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THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
Table of Contents
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SHAREHOLDER COMMUNICATION FINANCIAL INFORMATION
<S> <C> <C>
FINANCIAL OVERVIEW THE FLEX-FUNDS
1 A Letter from the President 20 Statements of Assets and Liabilities
2 Flex-funds Performance Report 21 Statements of Operations
PORTFOLIO MANAGER COMMENTARY 22 Statements of Changes in Net Assets
4 The Money Market Fund 23 Financial Highlights
5 The Muirfield Fund 26 Notes to Financial Statements
6 The Growth Fund THE PORTFOLIOS
7 The Short-Term Global Income Fund 29 Statements of Assets and Liabilities
8 The Bond Fund 30 Statements of Operations
9 The Total Return Utilities Fund 31 Statements of Changes in Net Assets
PORTFOLIOS 32 Financial Highlights
10 The Money Market Portfolio 34 Notes to Financial Statements
12 The Mutual Fund Portfolio
13 The Growth Stock Portfolio
16 The Short-Term Global Portfolio
17 The Bond Portfolio
18 The Utilities Stock Portfolio
ON THE COVER: The Muirfield Fund has received a 5-star rating from independent mutual fund monitor Morningstar, Inc. Morningstar
proprietary ratings reflect historical risk-adjusted performance as of July 31, 1995. The ratings are subject to change every month.
Morningstar ratings are calculated from the fund's three-, five-, and ten-year average annual returns in excess of 90-day Treasury
bill returns with appropriate fee adjustments, and a risk factor that reflects fund performance below 90-day T-bill returns. Ten
percent of the funds in an investment category receive five stars, 22.5% receive four stars, 35% receive three stars, 22.5% receive
two stars, and 10% receive one star. The Muirfield Fund is categorized as an Asset Allocation Fund by Morningstar. As of June 30,
1995, The Muirfield Fund had a 4-star rating from Morningstar. Past performance is no guarantee of future results.
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FLEX-FUNDS TOTAL RETURNS 1985 to 1995
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AVERAGE ANNUAL
TOTAL RETURNS (%)
Fund Years Since
(Inception) 1995 (ytd) 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 5 10 Inception
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Money Market Fund 2.95 4.10 2.98 3.70 6.12 8.21 9.32 7.59 6.62 6.75 6.10(1) 4.78 6.23 6.28
(3/27/85)
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The Muirfield Fund 13.92 2.70 8.11 6.91 29.83 2.33 13.95 6.20(2) n/a n/a n/a 11.44 n/a 11.93
(8/10/88)
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The Growth Fund 12.92 -0.69 7.21 6.35 21.46 4.31 10.17 -5.79 7.61 11.81 6.90(3) 9.81 7.99 7.79
(3/20/85)
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The Short-Term
Global Income Fund 3.87 2.14 0.03 0.52(4) n/a n/a n/a n/a n/a n/a n/a n/a n/a 2.11
(5/27/92)
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The Bond Fund 11.52 -0.99 8.21 3.26 15.30 8.35 8.75 2.74 -0.62 12.58 9.59(5) 8.24 7.42 7.64
(5/9/85)
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The Total Return
Utilities Fund -1.20(6) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
(6/21/95)
====================================================================================================================================
All performance figures above represent total returns and average annual total returns for the periods ended 6/30/95. Investment
performance represents total return and assumes reinvestment of all dividend and capital gain distributions. The performance data
shown above represents past performance and does not necessarily indicate future performance results. The investment return and
principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their
original cost. The Investment Adviser waived a portion of its management fees to reduce the operating expenses of The Money Market,
Short-Term Global Income, and Bond Funds during each of the periods shown above. The Money Market Fund will seek to maintain a
constant net asset value of $1.00 per share, although there is no guarantee that it will be able to do so. Investments in The Money
Market Fund are neither insured nor guaranteed by the U.S. Government. (1) Represents total return from 3/27/85 to 12/31/85.
(2) Represents total return from 8/10/88 to 12/31/88. (3) Represents total return from 3/20/85 to 12/31/85. (4) Represents total
return from 5/27/92 to 12/31/92. (5) Represents total return from 5/9/85 to 12/31/85. (6) Represents total return from 6/21/95 to
6/30/95.
</TABLE>
<PAGE> 3
A LETTER FROM THE PRESIDENT
ROBERT S. MEEDER, SR.
PRESIDENT
Dear Shareholders:
Our investment strategy, which we label Defensive Investing, dictates
that we continuously monitor our investment discipline to identify a market top
in a bull market and a market bottom in a bear market. At some point, a bull or
bear market cycle ends and either risk or opportunity follows. The current bull
market cycle (intermediate term) is over seven months old. Most market analysts
view the period from 1982 to the present as one of the longest bull markets in
history. There have been three major bull markets this century: the 1920s, the
1950s-60s and now.
For the first seven months of this year, the market's strength has
provided rewards for our shareholders, and we are pleased the gains have
continued since June 30th. But I'm uncomfortable with the stock market's nearly
straight-up rise ... particularly since the twenty month declining trend of
interest rates may be coming to an end.
My concern is also fueled by the amount of money that is pouring into
equity mutual funds. More than $1 trillion is now invested in equity funds.
That's twice the amount that was invested in equity mutual funds in February of
1993. Granted, the market is 35% - 40% higher today (depending on what market
index you measure), but net additions to mutual funds may amount to 60 - 65% of
that increase, or more than $300 billion. That's about $10 billion a month.
Can net positive cash flow continue at such a pace? If the flow of new
assets into stock funds declines, what impact will that have on the supply and
demand forces of the market? The buy-side bias which pushed stock prices higher
over the last two years could change. If that scenario develops, then the
market's positive dynamics of the last year could reverse.
Another concern of mine relates to the growing attitude of many
investors that "this time it's different." Recently, I attended an investment
meeting where the thought was expressed that dividend yield is probably no
longer important and "total return" is the measure of stock selection. Total
return has always been one of the criteria of portfolio evaluation, but when
double-digit total return is assumed and common stock dividend yields are about
2 1/2% for the overall market, stock appreciation assumptions become
considerably higher than historical norms. This condition may be more
acceptable when interest rates are relatively low, but when rates start rising,
decisions about investment alternatives begin to adjust.
Trying to be more of a historian than an "ol' fuddy duddy," I believe
there are some comparisons today with the latter stages of the bull market of
the 1960s. At that time, dividend yields were historically low (but higher than
today), Price-to-Earnings ratios were relatively high (higher than today), and
the vogue for "total return" investing was popular with institutions who
invested in the "nifty fifty" (perhaps a comparison to technology stocks
today). The bubble finally burst. Economic activity declined, the yield curve
flattened, inflation increased, manufacturing labor cost increased, mutual fund
assets grew at a much faster rate than
CONTINUED ON PAGE 2
PAGE 1
<PAGE> 4
FROM THE PRESIDENT
CONTINUED
usual, and speculation and overvalued measurements were at high levels. Between
the late sixties and 1974 the stock market lost over one half of its value.
No two periods exactly duplicate one another, and today's
over-valuation and mutual fund popularity have different dynamics than those
that occurred thirty years ago. But, I do feel caution, rather than euphoria,
is currently appropriate. Realistic expectations help make happy relationships.
We trust The Flex-funds have developed such a relationship with our
shareholders.
At this moment, the stock market looks like it will continue to rise
and The Muirfield, Growth, and Total Return Utilities Funds are positioned to
take advantage of this strength. But rest assured that when the "worm turns"
your investment management team will do its best to protect your investments.
Sincerely,
/s/ Robert S. Meeder, Sr.
--------------------------
Robert S. Meeder, Sr.
President
July 24, 1995
FLEX-FUND PERFORMANCE REPORT:
We firmly believe that the purpose of reports like this one is to keep
you informed about the progress of your investment with The Flex-funds. Our
goal, therefore, is to provide you with a clear, concise examination of fund
performance. Continuing the effort we began in our 1995 First Quarter Report,
we have created the fund-by-fund performance charts shown below and at right to
review the progress of each of The Flex-funds.
The charts show the total return of each Flex-fund for the year ended
June 30, 1995 and the average annual total returns for the three and five year
periods (if available) ended June 30. In the case of The Money Market Fund, we
have shown the average annual total return since March 31, 1985 - the nearest
month-end to the Fund's inception on March 27, 1985.
TOTAL RETURN refers to the actual total percentage change in value of
an investment over an established time period, assuming reinvestment of all
dividend and capital gain distributions.
AVERAGE ANNUAL TOTAL RETURN is based on an investment's total return
over a number of years and represents the return that would have been achieved
if the investment performed at a constant rate each year.
One of the best ways to evaluate the performance of your mutual fund
investments is to examine how the long-term performance of your fund stacks up
against the competition. You may, therefore, compare the average annual total
return of your fund versus the average return of a group of similar funds.
Independent mutual fund monitors like Morningstar, Inc. and Lipper Analytical
Services, Inc. provide data for such a comparison.
The bar charts below and at right show the performance of each of The
Flex-funds for
<TABLE>
THE MONEY MARKET FUND
Average Annual Total Return (%)
1 year Inception
------ ---------
<S> <C> <C>
THE MONEY MARKET FUND 5.38 6.27
The Average Taxable Money Market Fund(2) 5.24 5.81
</TABLE>
PAGE 2
<PAGE> 5
HOW WE STACK UP AGAINST THE COMPETITION
various periods versus a comparable Morningstar or Lipper fund average. Fund
performance is measured against the average fund in categories in which
each of The Flex-funds is placed by fund monitors. For example, The Muirfield
Fund and The Growth Fund are classified by Morningstar as Asset Allocation
Funds, therefore we have compared their performance to the performance of
Morningstar's average Asset Allocation fund. Periods for fund performance
vary, based on the age of the fund and the availability of data.
FOR MORE PERFORMANCE DATA, REFER TO THE TABLE ON THE INSIDE FRONT COVER
OF THIS REPORT, OR TO THE BAR GRAPHS SHOWN WITH EACH PORTFOLIO MANAGER'S
COMMENTS ON THE FOLLOWING PAGES. REMEMBER, THESE CHARTS REPRESENT PAST
PERFORMANCE ONLY, AND SHOULD NOT BE CONSTRUED AS AN INDICATION OF FUTURE
PERFORMANCE RESULTS.
<TABLE>
THE MUIRFIELD FUND
Average Annual Total Return
1 year 3 years 5 years
----- ------- -------
<S> <C> <C> <C>
THE MUIRFIELD FUND 16.23 11.07 11.44
The Average Asset
Allocation Fund(1) 14.03 9.54 9.58
THE GROWTH FUND
Average Annual Total Return
1 year 3 years 5 years
----- ------- -------
<S> <C> <C> <C>
THE GROWTH FUND 15.15 8.01 9.81
The Average Asset
Allocation Fund(1) 14.03 9.54 9.58
THE SHORT-TERM GLOBAL INCOME FUND
Average Annual Total Return
1 year 3 years
----- -------
<S> <C> <C>
THE SHORT-TERM GLOBAL INCOME FUND 5.39 1.76
The Average Short-Term World
Income Fund(1) 2.43 1.27
THE BOND FUND
Average Annual Total Return
1 year 3 years 5 years
----- ------- -------
<S> <C> <C> <C>
THE BOND FUND 13.74 7.52 8.24
The Average General Corporate
Bond Fund(1) 10.60 7.52 9.00
<FN>
(1) According to Morningstar, Inc. (2) According to Lipper Analytical Services, Inc.
</TABLE>
PAGE 3
<PAGE> 6
THE MONEY MARKET PORTFOLIO
THE MONEY MARKET FUND
PHILIP A. VOELKER
PORTFOLIO MANAGER
A well-timed move to lengthen the average maturity of The Money Market
Fund allowed the Fund to boost its performance during an otherwise quiet
quarter for money market yields.
The Money Market Fund's total return for the second quarter of 1995
made it the 11th best performing fund of 278 taxable money market funds
monitored by Lipper Analytical Services, Inc. For the 12-months ended June 30,
1995, The Money Market Fund was the 12th best of Lipper's 254 taxable money
market funds.
As of June 30, The Money Market Fund had a 30-day annualized compound
yield of 5.96%.
At the close of the second quarter, the assets of The Money Market Fund
were invested according to the pie chart above.
A STRATEGIC DECISION
The Money Market Fund was able to capture higher yields on longer-term
securities due to a strategic decision to extend the fund's average maturity.
At the close of the first quarter, the average maturity of The Money Market
Fund was 37 days. By the end of the second quarter, we had extended the average
maturity of the Fund to 81 days.
In contrast to the long average maturity of The Flex-funds Money Market
Fund, the average maturity of Morningstar's average Taxable Money Market Fund
was just 43 days as of June 30, 1995. In general, The Flex-funds Money Market
Fund will maintain an average maturity of 45 days or more when we perceive that
rates are declining and 30 days or less when interest rates are rising.
Early in the second quarter, interest rates on most fixed income
securities were declining. In the early stages of this declining interest rate
trend, we acted to purchase securities with maturities in the 90 to 360 day
range. By extending the average maturity of The Money Market Portfolio, we
pushed back the date when we would have to reinvest the assets of the Fund at
lower interest rates. Money market funds that did not act as quickly to extend
their average maturities were forced to reinvest assets at lower rates.
Interest rates declined during the second quarter in large part due to
an expectation that the Federal Reserve Board might lower the Federal Funds
rate. The Federal Funds rate is the interest rate that banks charge one another
for overnight loans. Changes in the Fed Funds rate often have a ripple effect
throughout the fixed income market.
A VALUABLE CHOICE
As evidenced most recently by our actions during the second quarter and
the results we were able to achieve as a consequence of those actions, we
believe The Money Market Fund is a very attractive choice for money fund
investors, or anyone in search of a valuable cash management tool.
<TABLE>
THE MONEY MARKET PORTFOLIO
AS OF JUNE 30, 1995
<S> <C>
U.S. Government Obligations 6.7%
Repurchase Agreements 7.6%
Corporate Obligations 38.4%
Commercial Paper 47.3%
</TABLE>
<TABLE>
RECENT FUND PERFORMANCE
<CAPTION>
Total Return (%)
3 months 1 year
<S> <C> <C>
THE MONEY MARKET FUND 1.48 5.38
Lipper Average Taxable Money Market Fund 1.35 4.91
</TABLE>
PAGE 4
<PAGE> 7
THE MUTUAL FUND PORTFOLIO
THE MUIRFIELD FUND
ROBERT S. MEEDER, JR.
PORTFOLIO MANAGER
At the midpoint of one of the strongest years for the stock market in
recent history, The Muirfield Fund remains a consistent performer.
The Muirfield Fund capitalized on a rapidly rising stock market
environment during the second quarter of 1995 and offered returns that exceeded
those available from the average Asset Allocation mutual fund, according to
Morningstar, Inc.
For the six months ended June 30, 1995, The Muirfield Fund provided a
total return of 13.92%, compared to a return of 12.48% from Morningstar's
average Asset Allocation fund. For more information about the returns offered
by The Muirfield Fund, see the chart below.
<TABLE>
RECENT FUND PERFORMANCE
<CAPTION>
Total Return (%)
3 months 6 months 1 year
<S> <C> <C> <C>
THE MUIRFIELD FUND 8.63 13.92 16.23
Morningstar Asset Allocation
Fund Average 6.84 12.48 14.03
</TABLE>
The Muirfield Fund achieved these results by including in its portfolio
a selection of growth mutual funds invested in mid- to small-capitalization
stocks. The Muirfield Fund also favored mutual funds with heavy weightings in
technology and financial stocks.
As of June 30, 1995, The Muirfield Fund's assets were invested
according to the chart at right.
<TABLE>
THE MUTUAL FUND PORTFOLIO
AS OF JUNE 30, 1995
<S> <C>
Stock Market Exposure 100%
</TABLE>
THE FLEX EQUITY FUNDS
Muirfield, Growth Funds Join in Market's Strength During 2nd Quarter
The Muirfield Fund and The Growth Fund participated in the stock
market's gains during the second quarter, while remaining alert for signs that
the level of risk present in the stock market was growing.
The Funds were in partially defensive positions as the second quarter
opened. Beginning in mid-March, The Muirfield Fund and The Growth Fund were 50%
invested in money market instruments based on concerns that arose in our
evaluation of the level of risk present in the stock market. (See Why We Became
Partially Defensive on page 5 of The Flex-funds First Quarter Report)
The Funds maintained a partially defensive position until the first
week of May when we increased their stock market exposure to 80%. By the first
week of June, The Muirfield Fund and The Growth Fund were again 100% exposed to
the stock market.
We returned to a fully-invested position because the elements of our
discipline that had caused us to become concerned about the level of risk in
the stock market were no longer pertinent. In fact, there were very few items
in place to indicate a need for
CONTINUED ON PAGE 6
PAGE 5
<PAGE> 8
THE GROWTH STOCK PORTFOLIO
THE GROWTH FUND
ROBERT S. MEEDER, JR.
PORTFOLIO MANAGER
Certainly stocks were the security of choice for many investors through
the first six months of 1995 and as a stock mutual fund, the Growth Fund
joined in the market's advance.
The Growth Fund provided returns better than those available from the
average Asset Allocation mutual fund through June 30, 1995, according to
Morningstar, Inc.
For the six month ended June 30, 1995, The Growth Fund provided a total
return of 12.92% compared to a return of 12.48% from the Morningstar's average
Asset Allocation fund (for more informationm about the returns offered by The
Growth Fund, See the chart below.)
<TABLE>
RECENT FUND PERFORMANCE
<CAPTION>
Total Return (%)
3 months 6 months 1 year
<S> <C> <C> <C>
THE GROWTH FUND 6.72 12.92 15.15
Morningstar Asset Allocation
Fund Average 6.84 12.48 14.03
</TABLE>
The Growth Fund concentrated its investments during the second quarter
closed, the Fund was 100% exposed to the stock market through a combination of
30 Dow Jones Industrial Average stocks and S&P 500 futures contracts.
As of June 30, 1995, The Growth Fumnd's assets were invested according
to the chart at right.
<TABLE>
THE GROWTH STOCK PORTFOLIO
AS OF JUNE 30, 1995
<S> <C>
Stock Market Exposure 100%
</TABLE>
caution with regard to the stock market.
Specifically, negative divergences no longer existed between major
stock market indexes, like the Dow Jones Industrial Average and the Standard &
Poor's 500 Index, and other market averages, like the NASDAQ Composite Index
and the Dow Jones Transportation Index. Moreover, the number of stocks making
new highs and the ratio of advancing stocks to declining stocks all began to
expand in a manner consistent with the strength shown by the Dow Jones
Industrials and the S&P 500. A positive interest rate environment, in which
interest rates are falling and bond prices are rising, also developed during
the second quarter.
SO FAR THIS YEAR
In the midst of the rapidly rising stock market of 1995, it is easy to
forget that markets also decline, often with equal zeal.
Through the second quarter of 1995, The Muirfield Fund and The Growth
Fund have provided attractive results for their shareholders. More importantly,
the manager of the Funds remains committed to actively monitoring the market
environment so that investors in both Funds can continue to share in the stock
market's advance and be protected from the potential downside that certainly
lies somewhere ahead.
PAGE 6
<PAGE> 9
THE SHORT-TERM GLOBAL PORTFOLIO
THE SHORT-TERM GLOBAL INCOME FUND
JOSEPH A. ZARR
PORTFOLIO MANAGER
The Short-Term Global Income Fund again managed to find value for its
shareholders despite difficult foreign fixed income markets.
The primary reason for The Short-Term Global Income Fund's achievement
was its ability to maintain domestic fixed income investments in combination
with global securities. As foreign currency markets languished, the Fund
invested in more profitable 3-year U.S. Treasuries.
For the six months ended June 30, 1995, the Fund provided investors
with a total return of 3.87%, compared with a total return for the same period
of 3.33% from the average Short-Term World Income Fund, according to
Morningstar, Inc.
As of June 30, 1995, The Short-Term Global Income Fund's assets were
invested according to the pie chart above.
AN OPPORTUNITY IN BONDS
The investment by The Short-Term Global Income Fund in 3-year U.S.
Treasuries came in marked contrast to the Fund's investments throughout 1994,
when the domestic bond market was racked with short-term interest rate
increases. Most of the opportunity that developed in 1994 came from the foreign
fixed income markets. The Short-Term Global Income Fund did not invest the
domestic portion of its assets in 3-year U.S. Treasuries during 1994 due to
rising interest rates and falling bond prices throughout the year. However, we
maintained the belief that an opportunity for investment in short-term U.S.
bonds would again present itself.
That opportunity did indeed develop beginning with the first quarter of
this year and continuing through June 30, 1995.
AN ADVANTAGE FOR YOU
The flexible portfolio structure of The Short-Term Global Income Fund
represents an advantage for Fund shareholders. As an illustration of this
flexibility, consider the changes that have taken place in the Portfolio over
the past year.
When the 3-year U.S. Treasury market encountered difficulty during
1994, the Fund concentrated its investments overseas and in U.S. money market
instruments.
Likewise, as the 3-year U.S. Treasury market rebounded in the first
half of 1995 while the foreign fixed income markets entered the doldrums, The
Short-Term Global Income Fund was able to capitalize on strength in the
domestic bond market.
As the year unfolds, we remain watchful for opportunities in both the
domestic bond market and the foreign fixed income market. Until the foreign
fixed income markets improve, we are committed to the strategy that has allowed
us to earn competitive returns for our shareholders so far in 1995.
<TABLE>
THE SHORT-TERM GLOBAL PORTFOLIO
AS OF JUNE 30, 1995
<S> <C>
Corporate Obligations 5.0%
Commercial Paper 2.6%
3-Year U.S. Treasuries 52.6%
U.S. Gov't. Obligations 16.5%
Repurchase Agreements 23.3%
</TABLE>
<TABLE>
RECENT FUND PERFORMANCE
<CAPTION>
Total Return (%)
3 months 6 months 1 year
<S> <C> <C> <C>
SHORT-TERM GLOBAL INCOME FUND 2.38 3.87 5.39
Morningstar Short-Term World
Income Fund Average 3.05 3.33 2.43
</TABLE>
PAGE 7
<PAGE> 10
THE BOND PORTFOLIO
%
THE BOND FUND
G. ROBERT KINCHELOE
PORTFOLIO MANAGER
The Bond Fund maintained its investments in 10-year U.S. Treasuries
throughout the second quarter and, as a result, provided shareholders with
attractive returns through the first half of 1995.
Through June 30, 1995, The Bond Fund has provided a total return of
11.52%. This compares favorably to a return of 10.08% from the average
Corporate Bond fund, per Morningstar, Inc.
As of June 30, 1995, the assets of The Bond Fund were invested
according to the chart at right.
<TABLE>
THE BOND PORTFOLIO
AS OF JUNE 30, 1995
<S> <C>
Repurchase Agreements 9.0%
Futures Contracts 0.1%
U.S. Gov't. Obligations 90.9%
</TABLE>
DECLINING INTEREST RATES
Interest rates on intermediate to long-term U.S. Treasury Bonds
declined for the quarter based on a mixture of economic news and anticipation
that the Federal Reserve Board would cut interest rates at its July meeting.
Yields on 10-year Treasury Bonds began the quarter at approximately 7.20% and
sank to a low of 6.04% by late June, before closing on June 30 at 6.21%.
Remember, bond yields react inversely to bond prices; as bond yields decrease,
bond prices increase and vice versa.
This declining interest rate trend remained a positive element for our
bond discipline. Other positives for the second quarter bond market were
evident in the fact that Real Rates of Return remained at acceptable levels
based on relatively low levels of inflation. In addition, the Yield Ratio
remained in positive territory based on the fact that 10-year Treasuries
continued to offer an acceptable, but narrowing, advantage in yield over U.S.
Treasury Bills.
HOW THE FUND WAS INVESTED
The Bond Fund began the second quarter with 80% of the Portfolio
invested in 10-year U.S. Treasuries. By late May, the 20% of the Portfolio held
in money market instruments was also shifted to 10-year bonds. This final
portion of the Portfolio was held in money market instruments through much of
the first quarter in anticipation of an opportunity to invest the assets during
a low-risk market environment. When that opportunity developed, we acted
quickly to capture it.
YOUR FLEXIBLE ADVANTAGE
The Bond Fund was defensively invested in money market instruments for
much of 1994 and, as a result, protected investors from the significant losses
endured by some fixed income funds. As the bond market has improved over the
course of 1995, The Bond Fund has likewise proved its ability to participate in
an advancing bond market, as it did during the second quarter.
<TABLE>
RECENT FUND PERFORMANCE
<CAPTION>
Total Return (%)
3 months 6 months 1 year
<S> <C> <C> <C>
THE BOND FUND 7.60 11.52 13.74
Morningstar General Corporate
Bond Fund Average 5.69 10.08 10.60
</TABLE>
PAGE 8
<PAGE> 11
THE UTILITIES STOCK PORTFOLIO
THE TOTAL RETURN UTILITIES FUND
LOWELL G. MILLER, J.D.
PORTFOLIO MANAGER
The Total Return Utilities Fund commenced operations in the final days of
June, opening what we believe will be a profitable and satisfying new era for
investors in The Flex-funds family.
From its inception on June 22 through the end of the second quarter on
June 30, the Fund held a 75% investment in stocks and a 25% investment in money
market instruments. The Total Return Utilities Fund established positions
amounting to 21% of its portfolio in shares of electricity providers, 25% in
gas distributors and pipelines, 4% in water, 16% in telephones, 6% in
mixed-service utilities, and 4% in independent power providers and
miscellaneous other stocks. As the third quarter unfolds, we intend to increase
our exposure to these stocks by reducing our investments in money market
instruments.
In general, the utilities stock market was very strong during much of the
second quarter. There was especially strong demand for the large electric
utilities that generally comprise the Dow Jones Utility Average, which climbed
over nine percent for the quarter. This advance was inspired by falling bond
rates and a generalized excitement regarding financial assets. Rates on
long-term bonds are not always a decisive indication of utility price
performance, but when changes are extreme you can expect utility prices to
follow.
THE UTILITIES STOCK PORTFOLIO
AS OF JUNE 30, 1995
<TABLE>
<S> <C>
Independent Power Providers, Other Stocks 4%
Water 4%
Mixed Service 6%
Telephones 16%
Money Market Instruments 25%
Gas Distributors 25%
Electricity Providers 21%
</TABLE>
CHANGES AFOOT?
There are some changes occurring at the regulatory level with regard to
providers of electricity and telephone services. The net result of these
changes, in our view, is that the markets affected will be less stable than
they were in the past, but that the demand for utility services will rise.
In a less regulated environment, outstanding management is presented with
chances for growth that would not otherwise have been available, and good
managers have a chance to shine. We hope to add as much of that "shine" to our
portfolio as possible. But in a world where cable companies may soon be able to
offer telephone service and phone companies may one day be selling movies, we
also need to expand our definitions and include more companies in our universe
of interest.
Clearly, changes are afoot and some investors will react with fear. But
we are excited by the opportunities ahead.
PAGE 9
<PAGE> 12
<TABLE>
MONEY MARKET PORTFOLIO
Portfolio of Investments as of June 30, 1995
<CAPTION>
====================================================================================================
FACE VALUE AMOUNT
(NOTES 1 AND 3)
----------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER - 47.3%
AES Shady Point, 6.60%, due 7/18/95 $ 1,207,000 $ 1,203,680
American Honda Finance, 6.10%, due 10/30/95 9,000,000 8,819,120
CS First Boston, 6.00%, due 7/26/95 8,000,000 7,969,333
Cargill Financial, 5.83%, due 9/19/95 5,000,000 4,936,842
Duff & Phelps, 5.75%, due 12/06/95 3,500,000 3,412,792
Duff & Phelps, 6.10%, due 9/19/95 5,000,000 4,933,917
Ford Motor Credit Corporation, 6.10%, due 9/11/95 5,000,000 4,940,694
GTE Finance Corporation, 5.97%, due 7/14/95 1,700,000 1,696,899
McCormick & Company Incorporated, 6.50%, due 7/17/95 2,000,000 1,994,944
Melville Corporation, 6.08%, due 12/07/95 2,690,000 2,618,673
Merrill Lynch, 5.95%, due 11/30/95 9,000,000 8,776,875
New England Power, 6.10%, due 7/07/95 1,050,000 1,049,288
Sears Roebuck Company, 6.15%, due 12/19/95 5,000,000 4,855,646
Southern California Edison, 6.12%, due 10/16/95 9,000,000 8,839,350
Southern California Gas, 6.20%, due 8/21/95 10,000,000 9,915,611
Tambrands, 6.04%, due 11/02/95 1,900,000 1,861,109
Toyota Motor Corporation, 6.32%, due 10/06/95 3,395,000 3,338,380
----------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $81,163,153) 81,163,153
====================================================================================================
CORPORATE OBLIGATIONS - 38.4%
American Telephone & Telegraph Corporation, 6.84%, due 10/23/95 500,000 500,897
*Bank One Capital Demand Note, 6.07%,
next redemption date 7/13/95 3,727,000 3,727,000
Barnett Bank, 10.00%, due 1/08/96 3,500,000 3,562,304
Bausch & Lomb, 6.70%, due 11/21/95 8,000,000 8,014,875
*Bear Stearns Floating Rate Note, 6.21%, due 3/01/96 10,000,000 10,000,000
*Best Sands Corporation Floating Rate Note,
6.20%, next redemption date 7/06/95 1,050,000 1,050,000
CIT Financial, 5.875%, due 12/01/95 175,000 174,688
CIT Group Holdings, 5.65%, due 11/15/95 500,000 498,952
*Care Life Project Floating Rate Note, 6.20%,
next redemption date 7/06/95 1,375,000 1,375,000
Conrail, 5.20%, due 2/12/96 1,000,000 994,941
Dow Capital Corporation, 8.25%, due 2/15/96 65,000 65,732
Dow Chemical Corporation, 4.625%, due 10/15/95 100,000 99,513
*Exxon Shipping Floating Rate Note, 6.05%,
next redemption date 7/03/95 7,000,000 7,000,000
Ford Motor Credit Corporation, 8.25%, due 5/15/96 1,200,000 1,222,292
Ford Motor Credit Corporation, 8.25%, due 7/15/96 171,000 174,717
*General Motors Acceptance Corporation Floating Rate Note,
6.235%, next redemption date 7/08/95 10,000,000 10,000,000
*Hancor Incorporated Floating Rate Note, 6.20%,
next redemption date 7/06/95 1,000,000 1,000,000
Household International, 9.00%, due 9/01/95 250,000 250,940
ITT Corporation, 5.25%, due 2/15/96 1,000,000 994,853
ITT Financial, 8.375%, due 8/01/95 100,000 100,132
Lockheed Corporation, 4.875%, due 2/15/96 85,000 84,234
Paccar Financial, 4.77%, due 10/10/95 2,000,000 1,993,021
Pacific Gas, 4.20%, due 10/10/95 1,000,000 992,512
</TABLE>
PAGE 10
<PAGE> 13
<TABLE>
<S> <C> <C>
Philip Morris Companies, 8.875%, due 7/01/96 1,000,000 1,027,345
Philip Morris Companies, 9.25%, due 9/25/95 300,000 301,670
*Presrite Corporation Floating Rate Note, 6.20%,
next redemption date 7/06/95 3,050,000 3,050,000
*Rockside Road Properties Floating Rate Note, 6.35%,
next redemption date 7/06/95 2,000,000 2,000,000
Smith Barney Holding Company, 5.375%, due 6/01/96 4,180,000 4,155,116
Unilever Corporation, 8.00%, due 5/28/96 450,000 458,558
WMX Technologies, 4.875%, due 6/15/96 215,000 212,788
Weyerhaeuser Corporation, 9.25%, due 11/15/95 800,000 808,722
----------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(Cost $65,890,802) 65,890,802
====================================================================================================
U.S. TREASURY BILLS - 0.1%
U.S. Treasury Bill, 6.66%, due 1/11/96 68,000 65,584
----------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY BILLS
(Cost $65,584) 65,584
====================================================================================================
U.S. GOVERNMENT OBLIGATIONS - 6.6%
*Student Loan Marketing Association Floating Rate Note,
5.70%, due 11/10/98, next redemption date 7/05/95 5,000,000 5,000,000
*Student Loan Marketing Association Floating Rate Note,
5.75%, due 8/03/99, next redemption date 7/05/95 4,350,000 4,355,979
*Student Loan Marketing Association Floating Rate Note,
5.68%, due 11/24/97, next redemption date 7/05/95 2,000,000 1,999,505
----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $11,355,484) 11,355,484
====================================================================================================
REPURCHASE AGREEMENTS - 7.6%
(Collateralized by U.S. Government Obligations)
Paine Webber, dated 6/30/95, 6.20%, due 7/03/95 11,863,000 11,863,000
Star Bank N.A., dated 6/30/95, 5.875%, due 7/03/95 1,308,000 1,308,000
----------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,171,000) 13,171,000
====================================================================================================
TOTAL INVESTMENTS - 100%
(Cost $171,646,023) $171,646,023
====================================================================================================
<FN>
*Floating Rate as of 6/30/95.
See Notes to Financial Statements.
</TABLE>
PAGE 11
<PAGE> 14
MUTUAL FUND PORTFOLIO
Portfolio of Investments as of June 30, 1995
<TABLE>
<CAPTION>
====================================================================================================
SHARES OR VALUE
FACE AMOUNT (NOTES 1 AND 3)
----------------------------------------------------------------------------------------------------
<S> <C> <C>
MUTUAL FUNDS - 89.9%
Acorn International Fund 60 $942
Baron Asset Fund 42,662 1,100,256
Constellation Fund 81 1,714
Charles Schwab Money Market Fund 586,521 586,521
Crabbe Huson Special Fund 72,833 1,045,157
Fidelity Growth & Income Fund 122,942 2,972,732
Fidelity Contra Fund 81,587 2,982,825
Fidelity Equity Portfolio Growth Fund 293,020 10,419,797
Fidelity Over-The-Counter Fund 354,867 10,351,479
Founders Growth Fund 72,727 1,033,455
Mutual Shares Fund 102,979 9,277,336
Neuberger Berman Manhattan Fund 323,774 3,943,566
Neuberger Focus Fund 387,385 10,319,924
Neuberger Guardian Fund 455,732 10,112,695
Neuberger Partners Fund 240,768 5,333,004
PBHG Growth Fund 1,222 22,588
T. Rowe Price New Era Fund 114 2,571
T. Rowe Price New Horizons Fund 551,701 10,101,651
Twentieth Century Vista Fund 78,125 1,057,030
Weingarten Equity Fund 409,481 7,608,150
----------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(Cost $80,153,431) 88,273,393
====================================================================================================
U.S.TREASURY BILLS - 3.1%
*U.S. Treasury Bill, 5.58%, due 7/20/95 $3,000,000 2,992,095
U.S. Treasury Bill, 6.66%, due 1/11/96 25,200 24,463
----------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY BILLS
(Cost $3,016,400) 3,016,558
====================================================================================================
*Pledged $2,230,000 face amount as collateral on futures contracts
----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 7.1%
(Collateralized by U.S. Government Obligations)
Paine Webber, dated 6/30/95, 6.20%, due 7/03/95 7,002,000 7,002,000
----------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,002,000) 7,002,000
----------------------------------------------------------------------------------------------------
CONTRACTS
FUTURES CONTRACTS - (0.1%)
Long, S&P 500 futures contracts
face amount $10,395,850 expiring in September, 1995. 38 (27,400)
----------------------------------------------------------------------------------------------------
NET PAYABLE FOR FUTURES CONTRACTS SETTLEMENTS (27,400)
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100%
(Cost $90,171,831) $98,264,551
====================================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 12
<PAGE> 15
<TABLE>
GROWTH STOCK PORTFOLIO
Portfolio of Investments as of June 30, 1995
<CAPTION>
===========================================================================
INDUSTRIES/CLASSIFICATIONS SHARES OR VALUE
FACE AMOUNT (NOTES 1 AND 3)
---------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 40.6%
AEROSPACE/DEFENSE - (1.5%)
Boeing Company 5,900 $369,488
---------------------------------------------------------------------------
ALUMINUM - (1.2%)
Aluminum Company of America 5,900 295,738
---------------------------------------------------------------------------
AUTO AND TRUCK - (1.2%)
General Motors 5,900 276,562
---------------------------------------------------------------------------
BANKING - (1.7%)
J.P. Morgan & Company, Inc. 5,900 413,738
---------------------------------------------------------------------------
BEVERAGE - (1.6%)
Coca Cola 5,900 376,125
---------------------------------------------------------------------------
CHEMICAL (BASIC) - (2.5%)
Dupont 5,900 405,625
Union Carbide 5,900 196,913
---------------------------------------------------------------------------
602,538
---------------------------------------------------------------------------
CHEMICAL (DIVERSIFIED) - (1.4%)
Minnesota Mining & Manufacturing 5,900 337,775
---------------------------------------------------------------------------
COMPUTER AND PERIPHERALS - (2.4%)
International Business Machines 5,900 566,400
---------------------------------------------------------------------------
DRUG - (1.2%)
Merck & Company, Inc. 5,900 289,100
---------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - (1.8%)
General Electric Company 5,900 332,612
Westinghouse Electric Corporation 5,900 86,287
---------------------------------------------------------------------------
418,899
---------------------------------------------------------------------------
FINANCIAL SERVICES - (.9%)
American Express 5,900 207,237
---------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - (1.8%)
Proctor & Gamble 5,900 424,062
---------------------------------------------------------------------------
MACHINERY (CONSTRUCTION & MINING) - (1.6%)
Caterpillar Inc. 5,900 379,075
---------------------------------------------------------------------------
MULTIFORM - (3.0%)
Allied-Signal Inc. 5,900 262,550
United Technologies 5,900 460,938
---------------------------------------------------------------------------
723,488
---------------------------------------------------------------------------
</TABLE>
PAGE 13
<PAGE> 16
<TABLE>
<S> <C> <C>
-----------------------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS - (2.1%)
International Paper 5,900 505,925
-----------------------------------------------------------------------------------------------
PETROLEUM (INTEGRATED) - (4.5%)
Chevron Corporation 5,900 275,087
Exxon 5,900 416,688
Texaco 5,900 387,187
-----------------------------------------------------------------------------------------------
1,078,962
-----------------------------------------------------------------------------------------------
PRECISION INSTRUMENT - (1.5%)
Eastman Kodak 5,900 357,688
-----------------------------------------------------------------------------------------------
RECREATION - (1.4%)
Walt Disney Company 5,900 328,187
-----------------------------------------------------------------------------------------------
RESTAURANT - (1.0%)
McDonalds Corporation 5,900 230,838
-----------------------------------------------------------------------------------------------
RETAIL STORE - (1.8%)
Sears 5,900 353,262
Woolworth Corporation 5,900 89,238
-----------------------------------------------------------------------------------------------
442,500
-----------------------------------------------------------------------------------------------
STEEL (INTEGRATED) - (.4%)
Bethlehem Steel 5,900 95,875
-----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES - (1.3%)
American Telephone & Telegraph 5,900 313,437
-----------------------------------------------------------------------------------------------
TIRE AND RUBBER - (1.0%)
Goodyear Tire & Rubber 5,900 243,375
-----------------------------------------------------------------------------------------------
TOBACCO - (1.8%)
Philip Morris Companies, Inc. 5,900 438,813
-----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $9,390,655) 9,715,825
===============================================================================================
U.S. TREASURY BILLS - 8.4%
*U.S. Treasury Bill, 5.58%, due 7/20/95 $2,000,000 1,994,730
U.S. Treasury Bill, 6.66%, due 1/11/96 6,700 6,504
-----------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY BILLS
(Cost $2,001,192) 2,001,234
===============================================================================================
*Pledged $985,000 face amount as collateral on futures contracts
-----------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 20.9%
Federal Agricultural Mortgage Association Discount Note,
6.00%, due 7/05/95 5,000,000 4,998,333
-----------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $4,998,333) 4,998,333
===============================================================================================
</TABLE>
PAGE 14
<PAGE> 17
<TABLE>
<S> <C> <C>
REPURCHASE AGREEMENTS - 30.2%
(Collateralized by U.S. Government Obligations)
Smith Barney, dated 6/30/95, 6.00%, due 7/03/95 4,235,000 4,235,000
Paine Webber, dated 6/30/95, 6.20%, due 7/03/95 2,996,000 2,996,000
-----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $7,231,000) 7,231,000
===============================================================================================
CONTRACTS
FUTURES CONTRACTS - (0.1%)
Long, S&P 500 futures contracts
face amount $14,225,900 expiring in September, 1995. 52 (22,001)
-----------------------------------------------------------------------------------------------
NET PAYABLE FOR FUTURES CONTRACTS SETTLEMENTS (33,800)
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100%
(Cost $23,621,180) $23,924,391
===============================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 15
<PAGE> 18
<TABLE>
SHORT-TERM GLOBAL PORTFOLIO
Portfolio of Investments as of June 30, 1995
<CAPTION>
================================================================================================
FACE AMOUNT VALUE
(NOTES 1 AND 3)
------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S.TREASURY - 55.3%
U.S. Treasury Note, 7.25%, due 2/15/98 $1,300,000 $1,343,266
U.S. Treasury Note, 6.125%, due 5/15/98 600,000 604,125
*U.S. Treasury Bill, 5.68%, due 8/17/95 100,000 99,290
U.S. Treasury Bill, 6.66%, due 1/11/96 1,200 1,165
------------------------------------------------------------------------------------------------
TOTAL U.S.TREASURY BILLS
(Cost $2,022,542) 2,047,846
================================================================================================
*Pledged $41,000 face amount as collateral on futures contracts
------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 13.8%
Federal Agricultural Mortgage Association Discount Note, 510,000 509,830
6.00%, due 7/05/95
------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $509,830) 509,830
================================================================================================
COMMERCIAL PAPER - 2.6%
Tambrands, 6.04%, due 11/02/95 100,000 97,953
------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $97,953) 97,953
================================================================================================
CORPORATE OBLIGATIONS - 5.0%
Associates Corporation, 8.875%, due 8/01/95 185,000 185,338
------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(Cost $185,338) 185,338
================================================================================================
REPURCHASE AGREEMENTS - 23.3%
(Collateralized by U.S. Government Obligations)
Paine Webber, dated 6/30/95, 6.20%, due 7/03/95 464,000 464,000
Smith Barney, dated 6/30/95, 6.00%, due 7/03/95 400,000 400,000
------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $864,000) 864,000
================================================================================================
CONTRACTS
FUTURES CONTRACTS - 0.0%
Long, French Franc futures contracts
face amount $514,750 expiring in September, 1995. 5 250
------------------------------------------------------------------------------------------------
NET PAYABLE FOR FUTURES CONTRACTS SETTLEMENTS 250
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100%
(Cost $3,679,663) $3,705,217
================================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 16
<PAGE> 19
<TABLE>
BOND PORTFOLIO
Portfolio of Investments as of June 30, 1995
<CAPTION>
===============================================================================================
FACE AMOUNT VALUE
(NOTES 1 AND 3)
-----------------------------------------------------------------------------------------------
<S> <C> <C>
U.S.TREASURY OBLIGATIONS - 90.9%
U.S. Treasury Note, 7.50%, due 2/15/2005 $6,450,000 $7,027,477
U.S. Treasury Note, 6.50%, due 5/15/2005 6,000,000 6,129,375
U.S. Treasury Bill, 5.59%, due 9/07/95 50,000 49,481
U.S. Treasury Bill, 6.66%, due 1/11/96 3,900 3,786
-----------------------------------------------------------------------------------------------
TOTAL U.S.TREASURY OBLIGATIONS
(Cost $12,709,088) 13,210,119
===============================================================================================
*Pledged $47,000 face amount as collateral on futures contracts
REPURCHASE AGREEMENTS - 9.0%
(Collateralized by U.S. Government Obligations)
Paine Webber, dated 6/30/95, 6.20%, due 7/03/95 1,316,000 1,316,000
-----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,316,000) 1,316,000
===============================================================================================
CONTRACTS
FUTURES CONTRACTS - 0.1%
Long, 10 Year Bond futures contracts
face amount $660,563 expiring in September, 1995. 6 2,625
-----------------------------------------------------------------------------------------------
NET RECEIVABLE FOR FUTURES CONTRACTS SETTLEMENTS 2,625
-----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100%
(Cost $14,025,088) $14,528,744
===============================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 17
<PAGE> 20
<TABLE>
UTILITIES STOCK PORTFOLIO
Portfolio of Investments as of June 30, 1995
<CAPTION>
===============================================================================================
INDUSTRIES/CLASSIFICATIONS SHARES OR FACE AMOUNT
FACE VALUE (NOTES 1 AND 3)
-----------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 59.4%
ELECTRIC/GAS UTILITY - (8.1%)
MDU Resources Group Incorporated 1,600 $47,600
Montana Power Company 1,800 41,400
Nipsco Industries Incorporated 1,900 64,600
Utilicorp United Incorporated 1,700 47,813
-----------------------------------------------------------------------------------------------
201,413
-----------------------------------------------------------------------------------------------
ELECTRIC UTILITY - (12.4%)
AES Corporation 2,200 41,800
Cinergy Corporation 2,000 52,500
Ipalco Enterprises Incorporated 1,500 47,813
KU Energy Corporation 1,300 36,237
LG&E Energy Corporation 1,300 50,700
Pacificorp 2,000 37,500
Teco Energy Incorporated 2,000 43,750
-----------------------------------------------------------------------------------------------
310,300
-----------------------------------------------------------------------------------------------
DIVERSIFIED UTILITY - (2.6%)
Citizens Utilities Company Class B 5,400 64,125
-----------------------------------------------------------------------------------------------
64,125
-----------------------------------------------------------------------------------------------
NATURAL GAS (DISTRIBUTOR) - (15.5%)
Bay State Gas Company 1,700 41,862
Brooklyn UN Gas Company 2,800 73,500
Consolidated Natural Gas Company 1,400 52,850
MCN Corporation 3,500 69,125
Nicor Incorporated 1,800 48,375
Panhandle Eastern Corporation 1,000 24,375
UGI Corporation 1,700 35,913
Wicor Incorporated 1,500 42,187
-----------------------------------------------------------------------------------------------
388,187
-----------------------------------------------------------------------------------------------
OIL/GAS (DOMESTIC) - (4.3%)
Sante Fe Pacific Pipeline Partners 1,000 36,375
Williams Companies Incorporated 2,000 69,750
-----------------------------------------------------------------------------------------------
106,125
-----------------------------------------------------------------------------------------------
</TABLE>
PAGE 18
<PAGE> 21
<TABLE>
<S> <C> <C>
TELECOMMUNICATION SERVICES - (14.0%)
Alltel Corporation 1,500 38,063
American Telephone & Telegraph 1,000 53,125
Bell Atlantic Corporation 800 44,800
Cincinnati Bell Incorporated 1,700 42,925
Comsat Corporation 1,000 19,625
Frontier Corporation 1,000 24,000
GTE Corporation 1,000 34,125
Nynex Corporation 300 12,075
Sprint Corporation 1,200 40,350
U.S. West Incorporated 1,000 41,625
---------------------------------------------------------------------------------------------------
350,713
---------------------------------------------------------------------------------------------------
WATER UTILITY - (2.5%)
American Water Works Incorporated 2,000 63,500
---------------------------------------------------------------------------------------------------
63,500
---------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,501,189) 1,484,363
===================================================================================================
U.S. GOVERNMENT OBLIGATIONS - 9.6%
Federal Agricultural Mortgage Association Discount Note, $240,000 239,920
6.00%, due 7/05/95
---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $239,920) 239,920
===================================================================================================
REPURCHASE AGREEMENTS - 31.0%
(Collateralized by U.S. Government Obligations)
Paine Webber, dated 6/30/95, 6.20%, due 7/03/95 410,000 410,000
Smith Barney, dated 6/30/95, 6.00%, due 7/03/95 365,000 365,000
---------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $775,000) 775,000
===================================================================================================
TOTAL INVESTMENTS - 100%
(Cost $2,516,109) $2,499,283
===================================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 19
<PAGE> 22
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE THE
THE SHORT-TERM TOTAL
MONEY THE THE GLOBAL THE RETURN
MARKET MUIRFIELD GROWTH INCOME BOND UTILITIES
FUND FUND FUND FUND FUND FUND
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
----------------------------------------------------------------------------------------------------------------------------------
Investment in corresponding portfolio $128,248,789 $95,399,819 $23,913,479 $3,758,147 $14,755,968 $1,787,544
----------------------------------------------------------------------------------------------------------------------------------
Receivable for capital stock issued - 207,391 5,702 717 39,631 202,500
----------------------------------------------------------------------------------------------------------------------------------
Unamortized organizational costs - - - 3,398 - 24,143
----------------------------------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 34,204 1,230 15,990 731 2,732 1,709
----------------------------------------------------------------------------------------------------------------------------------
Total Assets 128,282,993 95,608,440 23,935,171 3,762,993 14,798,331 2,015,896
==================================================================================================================================
LIABILITIES
----------------------------------------------------------------------------------------------------------------------------------
Payable for capital stock redeemed - 52,758 10,500 383 45,472 -
----------------------------------------------------------------------------------------------------------------------------------
Dividends payable 41,252 - - - - -
----------------------------------------------------------------------------------------------------------------------------------
Other accrued liabilities 31,511 28,857 15,722 - 5,100 24,960
----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 72,763 81,615 26,222 383 50,572 24,960
==================================================================================================================================
NET ASSETS $128,210,230 $95,526,825 $23,908,949 $3,762,610 $14,747,759 $1,990,936
==================================================================================================================================
CAPITAL STOCK OUTSTANDING 128,210,230 15,840,457 1,649,686 398,362 707,002 161,238
==================================================================================================================================
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICES PER SHARE $1.00 $6.03 $14.49 $9.45 $20.86 $12.35
==================================================================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 20
<PAGE> 23
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
STATEMENTS OF OPERATION
SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE THE
THE SHORT-TERM TOTAL
MONEY THE THE GLOBAL THE RETURN
MARKET MUIRFIELD GROWTH INCOME BOND UTILITIES
FUND FUND FUND FUND FUND FUND*
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income from
corresponding portfolio:
Interest $4,624,187 $1,315,489 $618,354 $135,327 $461,553 $1,819
-----------------------------------------------------------------------------------------------------------------------------------
Dividends - 60,166 36,247 - - 847
-----------------------------------------------------------------------------------------------------------------------------------
Expenses (155,812) (436,377) (142,256) (13,829) (37,797) (1,354)
-----------------------------------------------------------------------------------------------------------------------------------
Total Net Investment Income From
Corresponding Portfolio 4,468,375 939,278 512,345 121,498 423,756 1,312
===================================================================================================================================
Fund Expenses:
-----------------------------------------------------------------------------------------------------------------------------------
Legal fees 641 591 549 570 549 11
Audit fees 2,030 2,187 1,647 1,373 1,510 72
Printing 19,445 9,150 4,365 204 1,935 66
Postage 10,745 4,804 2,317 366 1,177 22
Transfer agent fees 51,823 38,897 10,482 1,943 4,811 121
Aministrative fee 19,178 11,349 2,891 658 1,691 -
Trustees fees and expenses 2,165 2,165 2,165 2,196 2,165 143
Registration and filing fees 10,065 4,227 4,100 1,650 2,527 220
Insurance 4,609 1,679 627 190 289 -
Distribution plan 55,004 48,125 21,662 4,082 12,943 -
Amortization of organizational costs - - - 855 - 146
Other expenses 6,479 3,426 1,133 366 824 17
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses 182,184 126,600 51,938 14,453 30,421 818
-----------------------------------------------------------------------------------------------------------------------------------
Expenses reimbursed by adviser (41,601) - - - - (1,709)
-----------------------------------------------------------------------------------------------------------------------------------
Total Expenses - net 140,583 126,600 51,938 14,453 30,421 (891)
===================================================================================================================================
INVESTMENT INCOME - NET 4,327,792 812,678 460,407 107,045 393,335 2,203
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS - NET:
-----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures - 1,935,258 1,840,116 5,417 (84,740) -
Net realized gain - other - 626,060 42,823 19,226 703,848 -
Unrealized appreciation (depreciation) of
investments - 8,194,118 450,538 31,834 503,840 (16,825)
-----------------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS - 10,755,436 2,333,477 56,477 1,122,948 (16,825)
===================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $4,327,792 $11,568,114 $2,793,884 $163,522 $1,516,283 ($14,622)
===================================================================================================================================
<FN>
* For the period June 21, 1995 to June 30, 1995
</TABLE>
See Notes to Financial Statements.
PAGE 21
<PAGE> 24
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
for the six months ended June 30, 1995 (unaudited) and the year ended December 31, 1994
<CAPTION>
THE THE THE
MONEY MARKET MUIRFIELD GROWTH
FUND FUND FUND
Six months Year Six months Year Six months Year
ended ended ended ended ended ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Investment income - net $ 4,327,792 $ 6,663,610 $ 812,678 2,097,085 $ 460,407 469,324
Net realized gain (loss) on investments - - 2,561,318 302,942 1,882,939 705,535
Net change in unrealized appreciation
(depreciation) of investments - - 8,194,118 (252,061) 450,538 (1,392,719)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 4,327,792 6,663,610 11,568,114 2,147,966 2,793,884 (217,860)
-----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
investment income - net (4,327,792) (6,663,610) (784,374) (2,097,066) (442,477) (469,410)
Tax return of capital
Net realized gain from investment - - - - - -
transactions - - - (368,544) - -
-----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from dividends and distributions (4,327,792) (6,663,610) (784,374) (2,465,620) (442,477) (469,410)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions (36,627,929) 1,624,085 10,373,643 (618,420) (3,307,867)
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (36,627,929) (35,192,215) 12,407,825 10,055,989 1,732,987 (3,995,137)
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - Beginning of period 164,838,159 200,030,374 83,229,000 73,063,011 22,175,962 26,171,099
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - End of period $128,210,230 $164,838,159 $95,526,825 $83,119,000 $23,908,949 $22,175,962
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THE THE THE TOTAL
SHORT-TERM BOND RETURN
GLOBAL INCOME FUND UTILITIES
FUND FUND
for the
period
6/21/95*
Six months Year Six months Year Six months
ended ended ended ended ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Investment income - net $ 107,045 243,984 $ 393,335 470,988 $ 2,203
Net realized gain (loss) on investments 24,643 (147,617) 619,108 (614,416) -
Net change in unrealized appreciation
(depreciation) of investments 31,834 (5,068) 503,840 (5,626) (16,825)
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 163,522 91,299 1,516,283 (149,054) (14,622)
---------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
investment income - net (107,045) (95,836) (393,335) (470,968)
Tax return of capital - (132,344) - - -
Net realized gain from investment - - - - -
transactions - - - - -
---------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from dividends and distributions (107,045) (228,160) (393,335) (470,968) -
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from capital share
transactions (227,507) (10,661,268) 641,983 465,458 2,005,558
---------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (171,030) (10,798,149) 1,764,931 (154,564) 1,990,936
---------------------------------------------------------------------------------------------------------------------
NET ASSETS - Beginning of period 3,933,640 14,731,789 12,982,828 13,137,392 -
---------------------------------------------------------------------------------------------------------------------
NET ASSETS - End of period $3,762,610 $ 3,933,640 $14,747,759 $12,982,828 $1,990,936
---------------------------------------------------------------------------------------------------------------------
<FN>
*Date of Commencement of Operations. (1) Including undistributed net investment income on June 30, 1995 and December 31, 1994,
respectively, of $28,304 and $0 in The Muirfield Fund; of $0 and $17,930 in The Growth Fund; and $2,203 in The Total Return
Utilities Fund; including undistributed net realized capital gains (losses) from the sale of securities on June 30, 1995 and
December 31, 1994, respectively, of $2,561,318 and $0 in The Muirfield Fund; $(1,756,905) and $(3,639,844) in The Growth Fund;
$(1,296,443) and $(1,915,551) in The Bond Fund; $(146,177) and $170,820) in The Short-Term Global Income Fund.
See Notes to Financial Statements.
</TABLE>
PAGE 22
<PAGE> 25
<TABLE>
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for an average share outstanding during each period
===========================================================================================================================
THE MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Net Investment income 0.03 0.04 0.03 0.04 0.06 0.08
---------------------------------------------------------------------------------------------------------------------------
Net Gains or Losses on Securities
(both realized and unrealized)
---------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations 0.03 0.04 0.03 0.04 0.06 0.08
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) (0.03) (0.04) (0.03) (0.04) (0.06) (0.08)
---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Returns of Capital - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.03) (0.04) (0.03) (0.04) (0.06) (0.08)
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===========================================================================================================================
TOTAL RETURN 5.88%(1) 4.10% 2.98% 3.70% 6.12% 8.21%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 128,210 164,838 200,030 245,259 316,951 247,481
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.40%(1) 0.37% 0.37% 0.35% 0.38% 0.38%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 5.80%(1) 4.02% 2.94% 3.68% 5.96% 7.92%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets,
before waiver and reimbursement of fees* 0.63%(1) 0.57% 0.57% 0.56% 0.56% 0.55%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets,
before waiver and reimbursement of fees* 5.57%(1) 3.82% 2.74% 3.47% 5.78% 7.75%
---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Annualized *Includes fees waived in corresponding portfolio
</TABLE>
<TABLE>
===========================================================================================================================
THE MUIRFIELD FUND
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $5.34 $5.36 $6.25 $6.43 $5.22 $5.84
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Net Investment income 0.05 0.14 (0.01) 0.06 0.07 0.22
---------------------------------------------------------------------------------------------------------------------------
Net Gains or Losses on Securities
(both realized and unrealized) 0.69 0.00 0.45 0.34 1.41 (0.10)
---------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations 0.74 0.14 0.44 0.40 1.48 0.12
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) (0.05) (0.14) (0.02) (0.06) (0.27) (0.10)
---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) - (0.02) (1.31) (0.52) - (0.64)
---------------------------------------------------------------------------------------------------------------------------
Returns of Capital - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.16) (1.33) (0.58) (0.27) (0.74)
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $6.03 $5.34 $5.36 $6.25 $6.43 $5.22
===========================================================================================================================
TOTAL RETURN 28.07%(1) 2.70% 8.11% 6.91% 29.83% 2.33%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 95,527 83,119 73,063 55,280 43,276 29,482
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.27%(1) 1.22% 1.26% 1.40% 1.50% 1.52%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 1.84%(1) 2.55% -0.13% 1.05% 1.25% 4.46%
---------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate N/A N/A N/A 324.14% 107.05% 648.96%
---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Annualized
</TABLE>
PAGE 23
<PAGE> 26
<TABLE>
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for an average share outstanding during each period
===========================================================================================================================
THE GROWTH FUND
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.08 $13.45 $12.70 $12.05 $10.21 $10.33
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Net Investment income 0.28 0.27 0.09 0.18 0.34 0.57
---------------------------------------------------------------------------------------------------------------------------
Net Gains or Losses on Securities
(both realized and unrealized) 1.40 (0.37) 0.82 0.58 1.84 (0.12)
---------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations 1.68 (0.10) 0.91 0.76 2.18 0.45
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) (0.27) (0.27) (0.16) (0.11) (0.34) (0.57)
---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Returns of Capital - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.27) (0.27) (0.16) (0.11) (0.34) (0.57)
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.49 $13.08 $13.45 $12.70 $12.05 $10.21
===========================================================================================================================
TOTAL RETURN 26.05%(1) 0.69% 7.21% 6.35% 21.46% 4.31%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 23,909 22,176 26,171 25,534 32,654 24,664
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.69%(1) 1.63% 1.51% 1.51% 1.42% 1.46%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 4.01%(1) 1.95% 1.31% 1.31% 2.98% 4.90%
---------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate N/A N/A N/A 39.03% 265.32% 435.80%
---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Annualized
</TABLE>
<TABLE>
===========================================================================================================================
THE SHORT-TERM GLOBAL INCOME FUND
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended YEAR ENDED FOR THE PERIOD
June 30, 1995 December 31, MAY 27, 1992*
(Unaudited) 1994 1993 TO DEC. 31, 1992
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $9.32 $9.41 $9.76 $10.00
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Net Investment Income 0.23 0.29 0.43 0.30
---------------------------------------------------------------------------------------------------------------------------
Net Gains or Losses on Securities
(both realized and unrealized) 0.13 (0.09) (0.43) (0.24)
---------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations 0.36 0.20 0.00 0.06
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) (0.23) - (0.12) (0.30)
---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) - - - -
---------------------------------------------------------------------------------------------------------------------------
Returns of Capital - (0.17) - (0.35)
---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.23) (0.29) (0.35) (0.30)
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.45 $9.32 $9.41 $9.76
===========================================================================================================================
TOTAL RETURN 7.80%(1) 2.14% 0.03% 0.52%(1)
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 3,763 3,934 14,732 34,805
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.27%(1) 1.08% 0.82% 0.85%(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 4.82%(1) 3.17% 4.42% 4.85%(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets,
before waiver of fees (2) 1.67%(1) 1.32% 0.82% 0.90%(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets,
before waiver of fees (2) 4.42%(1) 2.93% 4.42% 4.80%(1)
---------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate N/A N/A N/A N/A
---------------------------------------------------------------------------------------------------------------------------
<FN>
*Date of Inception (1) Annualized (2) Includes fees waived in corresponding portfolio
</TABLE>
PAGE 24
<PAGE> 27
<TABLE>
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
FINANCIAL HIGHLIGHTS
Selected per share data and ratios for an average share outstanding during each period
===========================================================================================================================
BOND FUND
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JUNE 30, 1995 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $19.25 $20.18 $19.46 $19.84 $18.37 $18.24
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Net Investment income 0.58 0.72 0.86 0.99 1.23 1.33
---------------------------------------------------------------------------------------------------------------------------
Net Gains or Losses on Securities
(both realized and unrealized) 1.61 (0.93) 0.71 (0.38) 1.47 0.13
---------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations 2.19 (0.21) 1.57 0.61 2.70 1.46
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) (0.58) (0.72) (0.85) (0.99) (1.23) (1.33)
---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Returns of Capital - - - - - -
---------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.58) (0.72) (0.85) (0.99) (1.23) (1.33)
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.86 $19.25 $20.18 $19.46 $19.84 $18.37
===========================================================================================================================
TOTAL RETURN 23.23%(1) -0.99% 8.21% 3.26% 15.30% 8.35%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 14,748 12,983 13,137 11,100 9,316 5,493
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.00%(1) 1.00% 0.99% 1.00% 0.94% 0.99%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 5.77%(1) 3.71% 4.25% 5.13% 6.59% 7.33%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets,
before waiver of fees* 1.15%(1) 1.14% 1.09% 1.21% 1.23% 1.36%
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets,
before waiver of fees* 5.62%(1) 3.57% 4.15% 4.92% 6.30% 6.96%
---------------------------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate N/A N/A N/A 100.53% 213.65% 500.38%
---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Annualized * Includes fees waived in corresponding portfolio
</TABLE>
<TABLE>
===========================================================================================================================
TOTAL RETURN UTILITIES FUND
---------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD JUNE 21, 1995*
TO JUNE 30, 1995 (UNAUDITED)
<S> <C>
Net Asset Value, Beginning of Period $12.50
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Net Investment income 0.02
---------------------------------------------------------------------------------------------------------------------------
Net Gains or Losses on Securities (both realized and unrealized) (0.17)
---------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations (0.15)
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
---------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) -
---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) -
---------------------------------------------------------------------------------------------------------------------------
Returns of Capital -
---------------------------------------------------------------------------------------------------------------------------
Total Distributions 0.00
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.35
===========================================================================================================================
TOTAL RETURN -43.80%(1)
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 1,99(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.25(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 7.14%(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets, before reimbursement of expenses 6.79%(1)
---------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets, before reimbursement of expenses 1.60%(1)
---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Annualized *Date of Inception. See Notes to Financial Statements.
</TABLE>
PAGE 25
<PAGE> 28
THE FLEX-FUNDS
Notes to Financial Statements, June 30, 1995
1. ORGANIZATION
The Flex-funds Trust was organized in 1982 and is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company which is presently comprised of six separate funds (the "Funds")
offering six separate series. Each Fund seeks to achieve its investment
objective by investing all of its assets in a corresponding open-end management
investment company (each a "Portfolio" and collectively the "Portfolios")
having the same investment objective as the Fund. The Money Market, Muirfield,
Growth, Bond, Short-Term Global Income, and Total Return Utilities Funds, the
Portfolios into which they invest and the percentage of each portfolio owned
by the respective Fund at June 30, 1995 is shown below:
<TABLE>
<CAPTION>
APPROXIMATE
PERCENTAGE
PORTFOLIO HELD
BY FUND AT
FUND PORTFOLIO JUNE 30, 1995
============================================================================================
<S> <C> <C>
Money Market Fund Money Market Portfolio 74.38%
--------------------------------------------------------------------------------------------
Muirfield Fund Mutual Fund Portfolio 97.12%
--------------------------------------------------------------------------------------------
Growth Fund Growth Stock Portfolio 100.00%
--------------------------------------------------------------------------------------------
Short-Term Global Income Fund Short-Term Global Portfolio 100.00%
--------------------------------------------------------------------------------------------
Bond Fund Bond Portfolio 100.00%
--------------------------------------------------------------------------------------------
Total Return Utilities Fund Utilities Stock Portfolio 100.00%
--------------------------------------------------------------------------------------------
</TABLE>
The financial statements of the Portfolios, including the Portfolio of
Investments, are included elsewhere in this report and should be read in
conjunction with the financial statements of each respective Fund.
2. SIGNIFICANT ACCOUNTING POLICES
Valuation of Investments - Valuation of securities by the Portfolios is
discussed at Note 1 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report (See page 36).
Income Taxes - It is the Funds' policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of their taxable income to their shareholders. Therefore, no
Federal income tax provision is required.
Distributions to Shareholders - Dividends to shareholders are recorded on the
ex-dividend date.
Organizational Costs - The costs related to the organization of each of the
five Funds have been deferred and are being amortized by each Fund on a
straight-line basis over a five-year period. Such costs for The Growth, Bond,
Muirfield and Money Market Funds have been fully amortized.
3. INVESTMENT ADVISORY, AND OTHER AGREEMENTS WITH AFFILIATES
R. Meeder & Associates (RMA), a wholly-owned subsidiary of Muirfield
Investors, Inc. (MII), provides each Portfolio with investment management,
research, statistical and advisory services. Miller/Howard Investments, Inc.
(Subadviser) serves as the Utilities Stock Portfolio's Subadviser under an
Investment Subadvisory Agreement between RMA and the Subadviser.
RMA has agreed to reimburse each Fund for the amount by which annual expenses
of the Fund and its respective Portfolio (excluding interest, taxes, brokerage
fees, and extraordinary expenses) exceed the most restrictive expense
limitation imposed by any State in which such Fund's shares are sold. Such
reimbursement is limited to the total fee charged by RMA. The investment
advisory fees waived at June 30, 1995 were at the request of RMA and were not
the result of the aforementioned expense limitations.
PAGE 26
<PAGE> 29
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
Mutual Funds Service Co., (MFS), a wholly-owned subsidiary of MII, serves as
stock transfer, dividend disbursing and shareholder services agent for all of
the Trust's separate Funds. Subject to a $4,000 annual minimum fee The Growth,
Muirfield, and Total Return Utilities Funds each incur an annual fee equal to
the greater of $15 per shareholder account, or .10% of each Fund's average net
assets, payable monthly. In The Bond and Short-Term Global Income Funds, the
annual fee is the greater of $15 per shareholder account, or .06% of each
Fund's average net assets, payable monthly. In The Money Market Fund, the
annual fee is the greater of $20 per shareholder account, or .06% of the Fund's
average net assets, payable monthly.
MFS also provides the Trust with certain administrative services. Each Fund
incurs an annual fee, payable monthly, of .03% of each Fund's average net
assets.
The Funds have adopted distribution expense plans pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (the "Plans"). Pursuant to the Plans, the
Funds may annually incur certain expenses associated with the distribution of
fund shares in amounts not to exceed 20/100 of 1% of each Fund's average net
assets, with the exception of The Total Return Utilities Fund whose amount
cannot exceed 25/100 of 1% of average net assets.
Certain officers and/or trustees of the Funds and each Portfolio are officers
and/or directors of MII, RMA and MFS.
4. COMMITMENTS AND CONTINGENCIES
Fidelity Bond and Errors and Omissions insurance coverage for the Trust and
its officers and Trustees has been obtained through ICI Mutual Insurance Company
(ICI Mutual), an industry-sponsored mutual insurance company. As of June 30,
1995, the Trust has made payments of $29,620, in addition to the annual
premiums paid, for the initial capital reserves of ICI Mutual.
The Trust is also committed to provide $51,055 should ICI Mutual experience
the need for additional capital contributions.
Total assets of $105,000 invested in U.S. Treasury Bills are held in
segregated accounts which collateralizes a standby letter of credit in
connection with the Trust's participation in ICI Mutual.
5. CAPITAL SHARE TRANSACTIONS
At June 30, 1995, an indefinite number of shares of $0.10 par value stock were
authorized in each of the Funds, and paid-in capital amounted to $128,210,230
in The Money Market Fund, $84,743,544 in The Muirfield Fund, $24,892,837 in The
Growth Fund, $15,545,987 in The Bond Fund, $3,876,537 in The Short-Term Global
Income Fund, and $2,005,558 in The Total Return Utilities Fund (See the chart
on the following pages for more information concerning capital stock
transactions).
6. DISTRIBUTIONS
The Money Market, Bond and Short-Term Global Income Funds declare dividends
daily and distribute monthly all of their net investment income. The Total
Return Utilities Fund declares as dividends and distributes monthly
substantially all of its net investment income. The Muirfield and Growth Funds
declare as dividends and distribute quarterly substantially all of their net
investment income. Net realized capital gains for all Funds, if any, are
distributed annually after deduction of prior years' loss carryforwards.
Dividends from net investment income and any distributions of realized capital
gains are distributed in cash or reinvested in additional shares of the Funds
at net asset value.
At June 30, 1995, The Growth, Bond and Short-Term Global Income Funds had
available for Federal income tax purposes unused capital loss carryforwards.
The amount in The Growth Fund is approximately $1,756,904 which will expire in
1996. The amount in The Bond Fund is approximately $1,296,443 which will
expire in the years 1995 through 2002. The amount in The Short-Term Global
Income Fund is approximately $146,177 which will expire in the years 2000
through 2002.
PAGE 27
<PAGE> 30
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
<TABLE>
Transactions in capital stock were as follows:
SHARES AMOUNT
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 06/30/95 ENDED ENDED 06/30/95 ENDED
(UNAUDITED) 12/31/94 (UNAUDITED) 12/31/94
=================================================================================================================
<S> <C> <C> <C> <C>
MONEY MARKET FUND:
-----------------------------------------------------------------------------------------------------------------
Shares sold 179,012,155 449,948,057 $179,012,155 $449,948,057
-----------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of dividends 4,109,710 6,091,045 4,109,710 6,091,045
-----------------------------------------------------------------------------------------------------------------
Total 183,121,865 456,039,102 $183,121,865 $456,039,102
-----------------------------------------------------------------------------------------------------------------
Shares redeemed (219,749,794) (491,231,317) (219,749,794) (491,231,317)
-----------------------------------------------------------------------------------------------------------------
Net (decrease) (36,627,929) (35,192,215) $(36,627,929) $(35,192,215)
=================================================================================================================
=================================================================================================================
MUIRFIELD FUND:
-----------------------------------------------------------------------------------------------------------------
Shares sold 1,556,470 6,427,244 $8,746,901 $34,666,417
-----------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of dividends 137,463 457,656 776,388 2,445,383
-----------------------------------------------------------------------------------------------------------------
Total 1,693,933 6,884,900 $9,523,289 $37,111,800
-----------------------------------------------------------------------------------------------------------------
Shares redeemed (1,404,842) (4,956,807) (7,899,204) (26,738,157)
-----------------------------------------------------------------------------------------------------------------
Net increase 289,091 1,928,093 $1,624,085 $10,373,643
=================================================================================================================
=================================================================================================================
GROWTH FUND:
-----------------------------------------------------------------------------------------------------------------
Shares sold 50,802 104,872 $703,989 $1,412,121
-----------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of dividends 31,054 35,330 436,878 462,346
-----------------------------------------------------------------------------------------------------------------
Total 81,856 140,202 $1,140,867 1,874,467
-----------------------------------------------------------------------------------------------------------------
Shares redeemed (127,898) (389,689) (1,759,287) (5,182,334)
-----------------------------------------------------------------------------------------------------------------
Net (decrease) (46,042) (249,487) $(618,420) $(3,307,867)
=================================================================================================================
=================================================================================================================
SHORT-TERM GLOBAL INCOME FUND:
-----------------------------------------------------------------------------------------------------------------
Shares sold 123,339 108,911 $1,150,492 $1,014,828
-----------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of dividends 9,637 22,129 90,202 206,803
-----------------------------------------------------------------------------------------------------------------
Total 132,976 131,040 $1,240,694 1,221,631
-----------------------------------------------------------------------------------------------------------------
Shares redeemed (156,697) (1,273,867) (1,468,201) (11,882,899)
-----------------------------------------------------------------------------------------------------------------
Net increase (23,721) (1,142,827) $(227,507) $(10,661,268)
=================================================================================================================
=================================================================================================================
BOND FUND:
-----------------------------------------------------------------------------------------------------------------
Shares sold 82,850 109,576 $1,641,863 $2,137,786
-----------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of dividends 17,148 21,062 343,338 408,279
-----------------------------------------------------------------------------------------------------------------
Total 99,998 130,638 $1,985,201 2,546,065
-----------------------------------------------------------------------------------------------------------------
Shares redeemed (67,477) (107,118) (1,343,218) (2,080,607)
-----------------------------------------------------------------------------------------------------------------
Net increase 32,521 23,520 $641,983 $465,458
=================================================================================================================
=================================================================================================================
TOTAL RETURN UTILITIES FUND:
-----------------------------------------------------------------------------------------------------------------
Shares sold 161,238 $2,005,558
-----------------------------------------------------------------------------------------------------------------
Shares issued in reinvestment
of dividends 0 0
-----------------------------------------------------------------------------------------------------------------
Total 161,238 2,005,558
-----------------------------------------------------------------------------------------------------------------
Shares redeemed 0 0
-----------------------------------------------------------------------------------------------------------------
Net increase 161,238 $2,005,558
=================================================================================================================
PAGE 28
</TABLE>
<PAGE> 31
<TABLE>
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1995
(UNAUDITED)
====================================================================================================================================
<CAPTION> THE THE THE THE THE
MONEY MUTUAL GROWTH SHORT-TERM THE UTILITIES
MARKET FUND STOCK GLOBAL BOND STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at market value* $158,475,023 $91,289,951 $16,715,392 $2,840,967 $13,210,119 $1,724,283
------------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements* 13,171,000 7,002,000 7,231,000 864,000 1,316,000 775,000
------------------------------------------------------------------------------------------------------------------------------------
Cash 1,417 1,154 834 558 748 577
------------------------------------------------------------------------------------------------------------------------------------
Receivable for futures contracts settlement - - - 250 2,625 -
------------------------------------------------------------------------------------------------------------------------------------
Interest receivable 976,948 11,500 3,679 48,191 237,022 1,241
------------------------------------------------------------------------------------------------------------------------------------
Dividends receivable - 22,787 19,607 - - -
------------------------------------------------------------------------------------------------------------------------------------
Prepaid/Other assets 3,756 1,364 326 55 203 -
------------------------------------------------------------------------------------------------------------------------------------
Organization cost 10,020 13,090 10,020 9,547 10,020 44,620
------------------------------------------------------------------------------------------------------------------------------------
Total Assets 172,638,164 98,341,846 23,980,858 3,763,568 14,776,737 2,545,721
====================================================================================================================================
LIABILITIES:
Payable for securities purchased - - - - - 712,104
------------------------------------------------------------------------------------------------------------------------------------
Payable for futures contracts settlement - 24,700 33,800 - - -
------------------------------------------------------------------------------------------------------------------------------------
Payable to investment advisor 21,899 73,718 20,876 - 3,707 374
------------------------------------------------------------------------------------------------------------------------------------
Other accrued liabilities 16,838 13,437 9,822 4,956 8,654 45,600
------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 38,737 111,855 64,498 4,956 12,361 758,078
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $172,599,427 $98,229,991 $23,916,360 $3,758,612 $14,764,376 $1,787,643
====================================================================================================================================
*Securities at cost 171,646,023 90,171,831 23,621,180 3,679,663 14,025,088 2,516,109
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
PAGE 29
<PAGE> 32
<TABLE>
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
<CAPTION>
STATEMENTS OF OPERATION
SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
====================================================================================================================================
THE THE THE THE THE
MONEY MUTUAL GROWTH SHORT-TERM THE UTILITIES
MARKET FUND STOCK GLOBAL BOND STOCK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO*
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME - NET:
Interest $6,090,162 $1,316,516 $618,357 $135,330 $461,557 $2,666
------------------------------------------------------------------------------------------------------------------------------------
Dividends - 61,067 36,248 - - -
------------------------------------------------------------------------------------------------------------------------------------
Total Income 6,090,162 1,377,583 654,605 135,330 461,557 2,666
Expenses:
Investment advisory fees 321,771 395,186 114,775 8,850 27,381 374
------------------------------------------------------------------------------------------------------------------------------------
Legal fees 433 549 387 387 387 17
------------------------------------------------------------------------------------------------------------------------------------
Audit fees 7,869 5,765 4,758 4,209 4,575 220
------------------------------------------------------------------------------------------------------------------------------------
Custodian fees 9,234 6,067 3,114 916 1,706 99
------------------------------------------------------------------------------------------------------------------------------------
Accounting fees 30,646 23,482 13,634 3,734 8,723 220
------------------------------------------------------------------------------------------------------------------------------------
Trustees fees and expenses 2,513 2,397 2,397 1,830 2,397 143
------------------------------------------------------------------------------------------------------------------------------------
Insurance 3,416 1,331 445 125 234 -
------------------------------------------------------------------------------------------------------------------------------------
Amortization of organization cost 2,496 2,727 2,496 2,379 2,496 270
------------------------------------------------------------------------------------------------------------------------------------
Other expenses 250 249 248 250 250 11
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 378,628 437,753 142,254 22,680 48,149 1,354
------------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees waived (173,832) - - (8,850) (10,352) -
------------------------------------------------------------------------------------------------------------------------------------
Total Expenses - net 204,796 437,753 142,254 13,830 37,797 1,354
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME (LOSS) - NET 5,885,366 939,830 512,351 121,500 423,760 1,312
====================================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on futures contracts - 1,941,409 1,840,126 5,417 (84,741) -
------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) - other - 630,876 42,823 19,226 703,854 -
------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) of investments - 8,243,528 450,540 31,836 503,844 (16,827)
------------------------------------------------------------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS - 10,815,813 2,333,489 56,479 1,122,957 (16,827)
====================================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5,885,366 $11,755,643 $2,845,840 $177,979 $1,546,717 ($15,515)
====================================================================================================================================
* For the period June 21, 1995 to June 30, 1995
</TABLE>
See Notes to Financial Statements.
PAGE 30
<PAGE> 33
<TABLE>
THE FLEX -FUNDS 1995 SEMIANNUAL REPORT
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
for the six months ended June 30, 1995 (unaudited) and the year ended December 31, 1994
====================================================================================================================================
THE THE THE
MONEY MARKET MUTUAL FUND GROWTH STOCK
PORTFOLIO PORTFOLIO PORTFOLIO
Six months Year Six months Year Six months Year
ended ended ended ended ended ended
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95 12/31/94
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income (loss) - net $5,885,366 $8,115,651 $939,830 $2,272,777 $512,351 $566,496
Net realized gain (loss) on investments - - 2,572,285 302,941 1,882,949 705,537
5Net change in unrealized appreciation
(depreciation) of investments - - 8,243,528 (252,062) 450,540 (1,392,790)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 5,885,366 8,115,651 11,755,643 2,323,656 2,845,840 (121,757)
------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS OF INVESTORS'
BENEFICIAL INTERESTS:
Contributions 394,926,910 733,486,217 11,359,013 26,769,231 728,190 1,440,673
Withdrawals (452,736,125) (717,226,708) (8,069,368) (27,503,563) (1,826,217) (5,322,563)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from transactions of
investors' beneficial interests (57,809,215) 16,259,509 3,289,645 (744,332) (1,098,027) (3,881,890)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (51,923,849) 24,375,160 15,045,288 1,579,324 1,747,813 (4,003,647)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - Beginning of year 224,523,276 200,148,116 83,184,703 81,605,379 22,168,547 26,172,194
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - End of period $172,599,427 $224,523,276 $98,229,991 $83,184,703 $23,916,360 $22,168,547
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
THE THE THE
SHORT-TERM BOND UTILITIES
GLOBAL PORTFOLIO PORTFOLIO STOCK PORTFOLIO
for the period
Six months Year Six months Year 6/21/95*
ended ended ended ended to
6/30/95 12/31/94 6/30/95 12/31/94 6/30/95
<S> <C> <C> <C> <C> <C>
====================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS:
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Investment income (loss) - net $121,500 $279,212 $423,760 $526,976 $1,312
Net realized gain (loss) on investments 24,643 (147,601) 619,113 (614,421) -
5Net change in unrealized appreciation
(depreciation) of investments 31,836 (5,068) 503,844 (5,626) (16,827)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 177,979 126,543 1,546,717 (93,071) (15,515)
------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS OF INVESTORS'
BENEFICIAL INTERESTS:
Contributions 1,149,224 1,025,710 1,609,619 2,140,676 1,803,158
Withdrawals (1,503,454) (11,962,648) (1,399,932) (2,217,176) -
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from transactions of
investors' beneficial interests (354,230) (10,936,938) 209,687 (76,500) 1,803,158
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (176,251) (10,810,395) 1,756,404 (169,571) 1,787,643
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - Beginning of year 3,934,863 (14,745,258) 13,007,972 13,177,543 -
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - End of period $3,758,612 $3,934,863 $14,764,376 $13,007,972 $1,787,6??
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Date of inception
See Notes to Financial Statements.
PAGE 31
<PAGE> 34
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Ratios/Supplemental Data
===========================================================================================================
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, 1995 DECEMBER 31, MAY 1, 1992
(UNAUDITED) 1994 1993 TO DEC. 31, 1992
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 172,599 224,523 200,148 244,272
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.21%(1) 0.19% 0.19% 0.18%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 5.97%(1) 4.28% 3.09% 3.60%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets,
before waiver of fees 0.38%(1) 0.39% 0.40% 0.40%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets,
before waiver of fees 5.80%(1) 4.08% 2.88% 3.38%(1)
-----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate N/A N/A N/A N/A
-----------------------------------------------------------------------------------------------------------
(1) Annualized
===========================================================================================================
MUTUAL FUND PORTFOLIO
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 1993
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 98,230 83,185 81,605
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.99%(1) 1.01% 1.03%
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 2.12%(1) 2.76% 0.09%
-----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 92.50% 168.17% 279.56%
-----------------------------------------------------------------------------------------------------------
(1) Annualized
===========================================================================================================
GROWTH STOCK PORTFOLIO
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, 1995 DECEMBER 31, MAY 1, 1992
(UNAUDITED) 1994 1993 TO DEC. 31, 1992
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 23,916 22,169 26,172 25,556
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.24%(1) 1.23% 1.23% 1.22%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 4.46%(1) 2.35% 0.99% 2.04%(1)
-----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 102.78% 102.76% 99.54% 129.44%
-----------------------------------------------------------------------------------------------------------
(1) Annualized
===========================================================================================================
SHORT-TERM GLOBAL PORTFOLIO
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, 1995 DECEMBER 31, MAY 1, 1992
(UNAUDITED) 1994 1993 TO DEC. 31, 1992
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period 3,759 3,935 14,745 34,809
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.62%(1) 0.62% 0.64% 0.66%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 5.48%(1) 3.62% 4.58% 3.88%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets,
before waiver of fees 1.02%(1) 0.86% 0.64% 0.72%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets,
before waiver of fees 5.08%(1) 3.38% 4.58% 3.82%(1)
-----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 146.85% 0.00% 780.99% 380.28%
-----------------------------------------------------------------------------------------------------------
(1) Annualized
</TABLE>
PAGE 32
<PAGE> 35
<TABLE>
THE FLEX-FUNDS 1995 SEMIANNUAL REPORT
<CAPTION>
===========================================================================================================
BOND PORTFOLIO
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED FOR THE PERIOD
JUNE 30, 1995 DECEMBER 31, MAY 1, 1992
(UNAUDITED) 1994 1993 TO DEC. 31, 1992
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period (000) 14,764 13,008 13,178 11,126
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.55%(1) 0.56% 0.60% 0.58%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 6.19%(1) 4.15% 4.62% 5.40%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets,
before waiver of fees 0.70%(1) 0.70% 0.71% 0.80%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets,
before waiver of fees 6.04%(1) 4.01% 4.51% 5.18%(1)
-----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 139.92% 707.57% 235.74% 132.53%
-----------------------------------------------------------------------------------------------------------
(1) Annualized
===========================================================================================================
UTILITIES STOCK PORTFOLIO
-----------------------------------------------------------------------------------------------------------
FOR THE PERIOD
JUNE 21, 1995* TO
JUNE 30, 1995
(UNAUDITED)
-----------------------------------------------------------------------------------------------------------
Net Assets, End of Period 1,788
-----------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 3.62%(1)
-----------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 4.21%(1)
-----------------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 0.00%
-----------------------------------------------------------------------------------------------------------
(1) Annualized
* Date of Inception
See Notes to Financial Statements.
</TABLE>
PAGE 33
<PAGE> 36
THE FLEX-FUNDS
1995 SEMIANNUAL REPORT
THE MONEY MARKET PORTFOLIO
THE MUTUAL FUND PORTFOLIO
THE GROWTH STOCK PORTFOLIO
THE BOND PORTFOLIO
THE SHORT-TERM GLOBAL PORTFOLIO
THE UTILITIES STOCK PORTFOLIO
JUNE 30, 1995
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Each separate Portfolio (the "Portfolios") is registered under the Investment
Company Act of 1940, as amended, as a no-load, open-end management investment
company which was organized as a trust under the laws of the State of New York.
Each Declaration of Trust permits the Trustees, who are the same for all the
Portfolios, to issue beneficial interests in each Portfolio. The following is
a summary of significant accounting policies followed by the Portfolios.
Investments - Money market securities held in the Money Market Portfolio are
valued at amortized cost, which approximates market value in accordance with
Rule 2a-7 of the Investment Company Act of 1940. Money market securities held
in the five remaining Portfolios maturing more than sixty days after the
valuation date are valued at the last sales price as of the close of business
on the day of valuation, or, lacking any sales, at the most recent bid price or
yield equivalent as obtained from dealers that make markets in such securities.
When such securities are valued within sixty days or less to maturity, the
difference between the valuation existing on the sixty-first day before
maturity and maturity value is amortized on a straight-line basis to maturity.
Securities maturing within sixty days from their date of acquisition are valued
at amortized cost.
Securities which are traded on stock exchanges are valued at the last sales
price as of the close of business of the New York Stock Exchange on the day of
valuation, or, lacking any sales, at the closing bid prices. Securities
traded on the over-the-counter market are valued at the most recent bid price
or yield equivalent as obtained from one or more dealers that make markets in
such securities. Mutual funds are valued at the daily redemption value
determined by the underlying fund. Valuations in The Bond and Short-Term
Global Portfolios are determined as of 3:00 p.m. Eastern time.
Repurchase Agreements - It is the Portfolios' policy to take possession of the
collateral for repurchase agreements before payment is made to the seller.
Market value of the collateral at the date of purchase must be at least 100% of
the amount of the repurchase agreement.
Options & Futures - Each Portfolio except the Money Market Portfolio may engage
in transactions in financial futures contracts and options as a hedge against
the change in market value of the securities held in the portfolio, or which it
intends to purchase. The expectation is that any gain or loss on such
transactions will be substantially offset by any gain or loss on the securities
in the underlying portfolio or on those which are being considered for
purchase.
To the extent that the Portfolio enters into futures contracts on an index or
group of securities the Portfolio exposes itself to an indeterminate liability
and will be required to pay or receive a sum of money measured by the change in
the market value of the index. Upon entering into a futures contract the
Portfolio is required to deposit either cash or securities in an amount
("initial margin" ) equal to a certain percentage of the contract value.
Subsequent payments ("variation margin") equal to changes in the daily
settlement price or last sale on the exchanges were they trade are paid or
received each day and are recorded as a gain or loss on futures contracts.
In the case of the Short-Term Global Portfolio, futures and options contracts
entered into will typically be futures and options on futures of a foreign
currency. The Portfolio is presently engaging only in the buying and selling
of futures contracts on foreign currencies. The expectation is that the
Portfolio will be able to participate in interest rate differentials between
the U.S. dollar and foreign currencies by investing in futures on the foreign
currencies in
PAGE 34
<PAGE> 37
THE FLEX-FUNDS
1995 SEMIANNUAL REPORT
lieu of investing in short-term foreign debt instruments. At the same time, the
Portfolio will take advantage of the favorable transaction cost associated
with the purchase of a futures contract in lieu of a cash instrument. To the
extent that the Portfolio enters into futures contracts on foreign currencies,
the Portfolio exposes itself to a liability, which at a maximum cannot exceed
the value given for the contracts, and will be required to pay or receive a sum
of money measured by the change in the market value of that currency's index.
Call and put option contracts involve the payment of a premium for the right to
purchase or sell an individual security or index aggregate at a specified price
until the expiration of the contract. Such transactions expose the Portfolio
to the loss of the premium paid if the Portfolio does not sell or exercise the
contract prior to the expiration date. In the case of a call option,
sufficient cash or money market instruments will be segregated to complete the
purchase. Options are valued on the basis of the daily settlement price or
last sale on the exchanges where they trade and the changes in value are
recorded as an unrealized gain or loss until sold, exercised or expired.
Income Taxes - It is the Portfolios' policy to comply with the requirements of
the Internal Revenue Code applicable to it. Therefore, no Federal income tax
provision is required.
Organizational Costs - The costs related to the organization of each of the six
Portfolios have been deferred and are being amortized by each Portfolio on a
straight-line basis over a five-year period.
Other - The Portfolios follow industry practice and record security
transactions on the trade date. Gains and losses on security transactions are
determined on the specific identification basis. Dividend income is recognized
on the ex-dividend date, and interest income (including amortization of premium
and discount) is recognized as earned.
2. INVESTMENT ADVISORY, AND OTHER AGREEMENTS WITH AFFILIATES
R. Meeder & Associates (RMA), a wholly-owned subsidiary of Muirfield Investors,
Inc. (MII), provides the Portfolios with investment management, research,
statistical and advisory services, and pays certain other expenses of the
Portfolios. Miller/Howard Investments, Inc. (Subadviser) serves as the
Utilities Stock Portfolio's Subadviser under an Investment Subadvisory
Agreement between RMA and the Subadviser. For such services the Portfolios pay
monthly a fee based upon the average daily value of each Portfolios' net assets
at the following annual rates: Mutual Fund, Growth Stock, and Utilities Stock
Portfolios, 1% of average net assets up to $50 million, 0.75% of average net
assets exceeding $50 million up to $100 million and 0.60% of average net assets
exceeding $100 million; Bond and Short-Term Global Income Portfolios, 0.40% of
average net assets up to $100 million and 0.20% of average net assets exceeding
$100 million; Money Market Portfolio, 0.40% of average net assets up to $100
million and 0.25% of average net assets exceeding $100 million. During the six
months ended June 30, 1995, RMA voluntarily waived a portion of its investment
advisory fees in the Money Market and Bond Portfolios, and all of its
investment advisory fees in the Short-Term Global Income Portfolio.
Mutual Funds Service Co., (MFS), a wholly-owned subsidiary of MII, serves as
accounting services agent for all of the Portfolios. The minimum annual fee
for all such services for the Mutual Fund, Growth Stock, Bond, Short-Term
Global, and Utilities Stock Portfolios is $7,500. Subject to the applicable
minimum fee, each Portfolio's annual fee, payable monthly, is computed at the
rate of 0.15% of the first $10 million, 0.10% of the next $20 million, 0.02% of
the next $50 million, and 0.01% in excess of $80 million of the respective
Portfolio's average net assets. In The Money Market Portfolio the minimum
annual fee for accounting services is $30,000. Subject to the applicable
minimum fee, The Money Market Fund's annual fee, payable monthly, is computed
at the rate of 0.15% of the first $10 million, 0.10% of the next $20 million,
0.02% of the next $50 million and 0.01% in excess of $80 million of the
Portfolio's average net assets.
Certain officers and/or trustees of each Portfolio are officers and/or
directors of MII, RMA and MFS.
PAGE 35
<PAGE> 38
3. PURCHASES AND SALES OF INVESTMENTS
Purchases and sales of investments, excluding short-term investments and U.S.
Government and agency obligations for the six months ended June 30, 1995 are as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
--------------------------------------------------------------------
Mutual Fund Portfolio $97,012,407 $17,900,654
--------------------------------------------------------------------
Growth Stock Portfolio $ 9,390,655 $ 0
--------------------------------------------------------------------
Utilities Stock Portfolio $ 1,501,189 $ 0
--------------------------------------------------------------------
</TABLE>
As of June 30, 1995, the aggregate cost of investments for financial reporting
purposes approximated the cost for Federal income tax purposes and net
unrealized appreciation (depreciation) for Federal income tax purposes was
comprised of the following:
<TABLE>
<CAPTION> NET UNREALIZED
GROSS UNREALIZED GROSS UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
OF INVESTMENTS OF INVESTMENTS OF INVESTMENTS
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------
Mutual Fund Portfolio $ 8,165,286 $ (45,166) $ 8,120,120
---------------------------------------------------------------------------------------------
Growth Stock Portfolio $ 383,357 $ (58,145) $ 325,212
---------------------------------------------------------------------------------------------
Short-Term Global Portfolio $ 26,142 $ (838) $ 25,304
---------------------------------------------------------------------------------------------
Bond Portfolio $ 518,835 $ (17,804) $ 501,031
---------------------------------------------------------------------------------------------
Utilities Stock Portfolio $ 2,705 $ (19,531) $ (16,826)
---------------------------------------------------------------------------------------------
</TABLE>
PAGE 36
<PAGE> 39
MANAGER AND INVESTMENT ADVISER
R. Meeder & Associates
6000 Memorial Drive
P.O. Box 7177
Dublin, Ohio 43017
BOARD OF TRUSTEES
Milton S. Bartholemew
Dr. Roger D. Blackwell
John M. Emery
Richard A. Farr
William L. Gurner
Robert S. Meeder, Sr.
Robert S. Meeder, Jr.
Russel G. Means
Lowell G. Miller
Walter L. Ogle
Neil P. Ramsey
Philip A. Voelker
CUSTODIAN
Star Bank, N.A., Cincinnati
Cincinnati, Ohio 45201
TRANSFER AGENT AND
DIVIDEND DISBURSING AGENT
Mutual Funds Service Co.
6000 Memorial Drive
Dublin, Ohio 43017
AUDITORS
KPMG Peat Marwick LLP
Columbus, Ohio 43215
IF YOU HAVE ANY QUESTIONS ABOUT THE
INFORMATION CONTAINED IN THIS REPORT,
CALL THE FLEX-FUNDS AT 800-325-3539 (FLEX)
<PAGE> 40
THE FLEX-FUNDS BULK RATE
P.O. BOX 7177 U.S. POSTAGE
DUBLIN, OH 43017 PAID
COLUMBUS, OH
PERMIT NO 1213
