THE FLEX-FUNDS
THE MONEY MARKET FUND
2000 SEMI-ANNUAL REPORT June 30, 2000
THE FLEX-FUNDS
P.O. Box 7177, Dublin OH 43017
(800)325-FLEX Fax(614)766-6669
www.flexfunds.com * [email protected]
<PAGE>
To obtain a prospectus containing more complete information about The Money
Market Fund, including other fees and expenses that apply to a continued
investment in The Money Market Fund, you may call The Flex-funds at
(800)325-3539 or write P.O. Box 7177, Dublin OH 43017. Please read the
prospectus carefully before investing.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. All performance figures
represents total returns and average annual total returns for the periods ended
6/30/00. Investment performance represents total return and assumes reinvestment
of all dividend and capital gain distributions. The investment value and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. The
Investment Advisor waived a portion of its management fees and/or reimbursed
expenses in order to reduce the operating expenses of The Money Market Fund.
An investment in The Money Market Fund is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other governmental agency. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund. Yield quotations more
closely reflect the current earnings of The Money Market Fund than do total
return quotations.
<PAGE>
The Flex-funds 2000 Semi-Annual Report
THE MONEY MARKET FUND
As of June 30, The Flex-funds Money Market Fund ranked in the top 10% of
all general purpose money market funds for period and average annual total
return for all periods monitored by Lipper, Inc. The Fund ranked in the top 6%
(#21 of 364) for 12-month total return, top 7% (#16 of 244) for 5-year average
annual total return, and top 5% (#6 of 137) for 10-year average annual total
return.*
The big news in the first half of 2000 was the 1.00% cumulative increase in
the Fed Funds rate by the Federal Reserve Board, spread out over 3 rate hikes.
Rapid economic growth led Alan Greenspan to a bias towards tightening short-term
interest rates. In anticipation, the Fund shortened its average maturity from 60
to 45 days and increased its exposure to floating rate instruments. Quality was
also a central issue during the quarter, as investors fled to the highest
quality issues on occasional fears of a sharp stock market decline.
The Fund's yields increased as a result of the Federal Reserve Board's
action to increase short-term interest rates and increased demand for funds from
businesses and consumers. On May 31, one-year LIBOR interest rates peaked at
7.50% then settled down to 7.11% by June 30. Since one-year LIBOR is very
sensitive to demands for borrowing, its decline prompted us to extend the
average maturity during June to as high as 72 days. At June 30th, the Fund's
average maturity was 68 days.
The Federal Reserve left short-term rates unchanged at their last meeting
in late June. The decision was undoubtedly based upon recent indications of a
slowing economy. The next meetings are scheduled for August and October while
the presidential campaigns are in full swing. If the Federal Reserve takes any
action in the next six months, it will most likely occur in August so the Fed.
No matter what the Fed does at its next meetings, it is apparent that we are
closer to the end than to the beginning of this cycle of rising interest rates.
* The Investment Advisor waived a portion of its management fees and/or
reimbursed expenses in order to reduce the operating expenses of the Fund for
each period shown above. Without such waivers, the Fund's rankings may have been
lower.
[PHOTO] Philip A. Voelker, Portfolio Manager
YEAR TO DATE PERFORMANCE
------------------------
PERIOD & AVERAGE ANNUAL TOTAL RETURNS
as of 6/30/00
THE MONEY AVERAGE MONEY
MARKET FUND MARKET FUND(1)
Year to Date........................ 2.92% 1.27%
One Year............................ 5.57% 4.72%
Five Years.......................... 5.35% 4.93%
Ten Years........................... 5.07% 4.73%
Since Inception(2).................. 5.98% n/a
1 According to Lipper Inc.
2 Inception Date 3/27/85
CURRENT & EFFECTIVE YIELDS
as of 6/30/00
7-day Simple Yield.................. 6.24%
7-day Compound Yield................ 6.42%
PORTFOLIO HOLDINGS as of June 30, 2000
[GRAPH] The following information was presented as a pie chart:
1) Commercial Paper 64%
2) Variable Rate Notes 17%
3) Repurchase Agreements 15%
4) Certificates of Deposit 4%
<PAGE>
Money Market Portfolio
Portfolio of Investments as of June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
COUPON/YIELD MATURITY FACE AMOUNT AMORTIZED COST
<S> <C> <C> <C> <C>
COMMERCIAL PAPER - 63.8%
Allegheny Energy, Inc. 6.69% 09/07/00 $50,000,000 $49,386,750
American Honda Finance 6.60% 09/13/00 7,000,000 6,907,600
AT&T Corp. 6.61% 11/15/00 50,000,000 48,760,625
Bank of America Corp. 6.70% 12/06/00 50,000,000 48,548,333
British Telecommunications PLC 6.00% 07/31/00 50,000,000 49,766,666
Catholic Healthcare Partners*** 6.75% 10/04/00 11,488,000 11,287,678
Credit Suisse First Boston, Inc.*** 6.03% 08/18/00 50,000,000 49,614,750
Daimler Chrysler AG Holdings 6.23% 10/18/00 75,000,000 73,611,229
Deutsche Bank Financial 6.61% 11/06/00 50,000,000 48,843,250
Duff & Phelps Utility & Corp.*** 6.72% 11/20/00 12,500,000 12,173,333
Duff & Phelps Utility & Corp.*** 6.68% 11/03/00 11,193,000 10,937,538
E.I. duPont De Nemours Co. 5.98% 08/28/00 20,000,000 19,813,955
E.I. duPont De Nemours Co. 6.02% 10/04/00 50,000,000 49,222,417
General Electric Capital Corp. 6.66% 03/06/01 50,000,000 47,724,500
Household Finance Corp. 6.63% 12/13/00 50,000,000 48,499,042
Johnson & Johnson*** 5.79% 07/05/00 25,000,000 24,991,958
Merrill Lynch & Co. 6.01% 07/26/00 60,000,000 59,769,617
Monsanto Co. 5.95% 07/06/00 30,000,000 29,985,125
Motorola, Inc. 6.65% 09/18/00 50,000,000 49,288,819
National Rural Utilities 6.05% 08/07/00 25,000,000 24,852,952
Standard Life Funding 6.17% 08/10/00 25,000,000 24,837,180
Toronto Dominion Holdings 6.64% 09/19/00 50,000,000 49,280,667
Xerox Credit Corp. 6.18% 07/12/00 25,000,000 24,961,375
TOTAL COMMERCIAL PAPER
(Cost$863,065,360 ) 863,065,360
CORPORATE OBLIGATIONS - 17.4%
American General Corp. 9.63% 07/15/00 3,000,000 3,002,944
American Honda Finance Corp.*** 6.89%* 08/21/00 10,000,000 10,005,791
Aquarium Holdings KY*** 6.69%* 07/06/00 13,208,000 13,208,000
Austin Printing Co., Inc.*** 6.76%* 07/06/00 2,515,000 2,515,000
AT&T Corp.*** 6.73%* 08/07/00 10,000,000 10,001,249
Bank One Corp.*** 6.84%* 08/18/00 10,000,000 10,001,464
Bath Technologies, Inc.*** 6.79%* 07/06/00 1,460,000 1,460,000
Bath Technologies, Inc.*** 6.76%* 07/06/00 4,400,000 4,400,000
Beaver Creek Enterprise*** 6.76%* 07/06/00 2,150,000 2,150,000
Branch Banking and Trust 7.06%* 08/30/00 10,000,000 10,011,591
Care Life Project*** 6.76%* 07/06/00 3,600,000 3,600,000
Clark Grave Vault Co.*** 6.69%* 07/06/00 2,250,000 2,250,000
Coughlin Family Prop., Inc.*** 6.69%* 07/06/00 3,405,000 3,405,000
Damascus-Bishop Tire*** 6.76%* 07/06/00 9,500,000 9,500,000
Danis Construction Co.*** 6.69%* 07/06/00 5,000,000 5,000,000
D.E.D.E. Realty*** 6.69%* 07/06/00 3,575,000 3,575,000
Doren, Inc.*** 6.76%* 07/06/00 200,000 200,000
Espanola/Nambe*** 6.76%* 07/06/00 1,905,000 1,905,000
Ford Motor Credit Co. 6.30%* 10/02/00 900,000 900,000
Ford Motor Credit Co. 10.13% 11/15/00 1,000,000 1,010,324
GTE Corp. 6.83%* 09/11/00 40,000,000 39,986,264
General Motors Acceptance Corp. 5.63% 09/11/00 85,000 84,008
Gordon Flesch Co. Project*** 6.76%* 07/06/00 1,000,000 1,000,000
Hancor, Inc.*** 6.76%* 07/06/00 500,000 500,000
IBM Corp. 6.04% 08/07/00 3,000,000 2,999,380
Isaac Tire, Inc.*** 6.69%* 07/06/00 955,000 955,000
Jackson Tube Service, Inc.*** 6.69%* 07/06/00 4,800,000 4,800,000
J.W. Harris Co., Inc.*** 6.69%* 07/06/00 4,100,000 4,100,000
K.L. Morris, Inc.*** 6.69%* 07/06/00 2,165,000 2,165,000
Luken-Woodlawn LLC*** 6.69%* 07/06/00 3,655,000 3,655,000
Merrill Lynch & Co. 6.35% 07/24/00 250,000 250,039
MetLife Insurance Co.**** 6.34%* 07/03/00 20,000,000 20,000,000
Miami Valley Steel*** 6.76%* 07/06/00 2,050,000 2,050,000
Mubea, Inc.*** 6.76%* 07/06/00 11,925,000 11,925,000
Ohio Presbyterian Retirement Services*** 6.76%* 07/06/00 6,245,000 6,245,000
O.K.I. Supply Co.*** 6.69%* 07/06/00 2,000,000 2,000,000
Osco Industries, Inc.*** 6.76%* 07/06/00 2,400,000 2,400,000
Presrite Corp.*** 6.76%* 07/06/00 1,360,000 1,360,000
Pro Tire, Inc.*** 6.69%* 07/06/00 1,145,000 1,145,000
R.I. Lampus Co.*** 6.76%* 07/06/00 1,780,000 1,780,000
RSD Technology LLC*** 6.76%* 07/06/00 5,365,000 5,365,000
Seariver Maritime, Inc.*** 6.60%* 07/03/00 6,000,000 6,000,000
SGS Tool Company*** 6.76%* 07/06/00 1,440,000 1,440,000
Surgery Financing Co.*** 6.76%* 07/06/00 6,240,000 6,240,000
<PAGE>
White Castle Project*** 6.76%* 07/06/00 8,250,000 8,250,000
TOTAL CORPORATE OBLIGATIONS
(Cost $234,796,054 ) 234,796,054
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.1%
Federal Home Loan Bank Note 5.30% 12/01/00 1,000,000 993,123
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $993,123 ) 993,123
U.S. TREASURY OBLIGATIONS - 0.0%
** U.S. Treasury Bill 5.64% 01/04/01 63,100 61,272
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $61,272 ) 61,272
CERTIFICATES OF DEPOSIT - 3.7%
Wilmington Trust Co. 6.92% 10/03/00 50,000,000 50,001,248
TOTAL CERTIFICATES OF DEPOSIT
(Cost $50,001,248 ) 50,001,248
REPURCHASE AGREEMENTS - 15.0%
State Street Securities LLC, 6.40%, 07/03/00, (Collateralized by 6.40% 07/03/00 30,037,000 30,037,000
$30,335,000 Federal Home Loan Bank Note, 5.875%, 08/15/01,
market value - $30,638,350)
Smith Barney Securities LLC, 7.19%, 07/03/00, (Collateralized by 7.185% 07/03/00 173,794,000 173,794,000
$178,397,271 various commercial papers, 6.58 - 6.63%,
07/03/00 - 09/25/00, market value - $177,270,008)
TOTAL REPURCHASE AGREEMENTS
(Cost $203,831,000 ) 203,831,000
TOTAL INVESTMENTS - 100.0%
(Cost $1,352,748,057)(a) $1,352,748,057
TRUSTEE DEFERRED COMPENSATION***** SHARES VALUE
Flex-funds Highlands Growth Fund 783 $16,985
Flex-funds Muirfield Fund 1,587 9,874
Flex-funds Total Return Utilities Fund 404 8,281
Meeder Advisor International Equity Fund 631 9,483
TOTAL TRUSTEE DEFERRED COMPENSATION
(Cost $44,623 ) $44,623
<FN>
(a) Cost for federal income tax and financial reporting purposes are the
same.
* Variable rate security. Interest rate is as of June 30, 2000. Maturity
date reflects the next rate change date.
** Pledged as collateral on Letter of Credit.
*** Security is restricted as to resale to institutional investors, but
has been deemed liquid in accordance with guidelines approved by the
Board of Trustees.
**** Illiquid security. The sale or disposition of such security would not
be possible in the ordinary course of business within seven days at
approximately the value at which the Fund has valued the security.
***** Assets of affiliates to the Money Market Portfolio held for the
benefit of the Portfolio's Trustees in connection with the Trustee
Deferred Compensation Plan.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 2000 (UNAUDITED)
MONEY
MARKET
FUND
Assets
Investments in corresponding portfolio, at value $224,551,105
Receivable from investment advisor 27,191
Other assets 95,035
Total Assets 224,673,331
Liabilities
Dividends payable 1,212,230
Accrued 12b-1 distribution fees 51,670
Accrued transfer agent and administrative fees 15,658
Other accrued liabilities 1,012
Total Liabilities 1,280,570
Net Assets 223,392,761
Net Assets
Capital 223,392,761
Total Net Assets $223,392,761
Capital Stock Outstanding 223,392,761
(indefinite number of shares authorized, $0.10 par value)
Net Asset Value, Offering and Redemption Price Per Share $1.00
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
UNAUDITED
MONEY
MARKET
FUND
Net Investment Income from Corresponding Portfolio
Interest $7,492,711
Expenses net of waivers and/or reimbursements (225,489)
Total Net Investment Income from Corresponding Portfolio 7,267,222
Fund Expenses
Administrative 61,133
Transfer agent 76,023
Audit 889
Legal 1,277
Printing 23,239
Distribution plan 97,813
Postage 21,094
Registration and filing 29,303
Insurance 981
Other 3,422
Total Expenses 315,174
Expenses reimbursed by investment advisor (40,798)
Net Expenses 274,376
Net Investment Income (Loss) 6,992,846
Net Realized and Unrealized Gain (Loss) from Investments
Net Increase (Decrease) in Net Assets Resulting from Operations $6,992,846
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999
MONEY MARKET FUND
<TABLE>
<CAPTION>
Six months
ended Year
June 30, 2000 ended
(unaudited) December 31, 1999
Increase (Decrease) in Net Assets
Operations
<S> <C> <C>
Net investment income (loss) $6,992,846 $10,553,903
Net increase in net assets resulting from operations 6,992,846 10,553,903
Dividends and Distributions to Shareholders from
Net investment income (6,992,846) (10,553,903)
Net decrease in net assets resulting from dividends and distributions (6,992,846) (10,553,903)
Capital Transactions
Issued 279,095,604 621,768,406
Reinvested 5,679,605 10,405,355
Redeemed (293,405,681) (554,405,825)
Net increase in net assets resulting from capital transactions (8,630,472) 77,767,936
Total Increase (Decrease) in Net Assets (8,630,472) 77,767,936
Net Assets - Beginning of Period 232,023,233 154,255,297
Net Assets - End of Period $223,392,761 $232,023,233
Share Transactions
Issued 279,095,604 621,768,406
Reinvested 5,679,605 10,405,355
Redeemed (293,405,681) (554,405,825)
Change in shares (8,630,472) 77,767,936
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
THE MONEY MARKET FUND
<TABLE>
<CAPTION>
Six months Year Year Year Year Year
ended ended ended ended ended ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<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 0.030 0.049 0.052 0.053 0.05 0.06
Total from Investment Operations 0.030 0.049 0.052 0.053 0.05 0.06
Less Dividends and Distributions
From net investment income (0.030) (0.049) (0.052) (0.053) (0.05) (0.06)
Total Dividends and Distributions (0.030) (0.049) (0.052) (0.053) (0.05) (0.06)
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return 2.92%(3) 4.96% 5.31% 5.38% 5.27% 5.85%
Ratios/Supplemental Data
Net assets, end of period ($000) $223,393 $232,023 $154,255 $169,335 $119,947 $141,087
Ratio of expenses to average net assets 0.41%(2) 0.41% 0.40% 0.40% 0.40% 0.40%
Ratio of net investment income to average net assets 5.73%(2) 4.88% 5.19% 5.26% 5.15% 5.70%
Ratio of expenses to average net assets before 0.55%(2) 0.54% 0.59% 0.59% 0.58% 0.64%
reimbursement/waiver of fees(1)
Ratio of net investment income to average net assets 5.59%(2) 4.75% 5.00% 5.07% 4.97% 5.46%
before reimbursement/waiver of fees(1)
<FN>
(1) Ratio includes fees waived in corresponding portfolio.
(2) Annualized.
(3) Not annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MONEY MARKET FUND SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
1. ORGANIZATION
The Flex-funds Trust (the "Trust") was organized in 1982 and is registered under
the Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Trust offers five separate series,
and it is presently comprised of five separate funds including The Money Market
Fund (the "Fund"). The Fund invests all of its investable assets in a
corresponding open-end management investment company (the "Portfolio") having
the same investment objective as the Fund. The Fund, the Portfolio into which
the Fund invests and the percentage of each Portfolio owned by the Fund is as
follows:
PERCENTAGE OF PORTFOLIO
OWNED BY FUND AS OF JUNE
FUND PORTFOLIO 30, 2000
The Money Market Fund Money Market Portfolio 17%
The financial statements of the Portfolio, including the Portfolio of
Investments, are included elsewhere in this report and should be read in
conjunction with the financial statements of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
VALUATION OF INVESTMENTS
The Fund values its investment in the corresponding Portfolio at fair value.
Valuation of securities held by the Portfolio is further described at Note 2 of
the Portfolios' Notes to Financial Statements which are included elsewhere in
this report.
INCOME TAXES
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income and net capital gains
to its shareholders. Therefore, no Federal income tax provision is required.
DISTRIBUTIONS TO SHAREHOLDERS
The Fund declares dividends from net investment income on a daily basis and pays
such dividends on a monthly basis. The Fund distributes net capital gains, if
any, on an annual basis.
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. Permanent book and tax basis
differences have been reclassified among the components of net assets.
INVESTMENT INCOME & EXPENSES
The Fund records daily its proportionate share of the Portfolio's income,
expenses, and realized and unrealized gains and losses. In addition, the Fund
accrues its own expenses. Expenses incurred by the Trust that do not
specifically relate to an individual Fund of the Trust are allocated to the
Funds based on each Fund's relative net assets or other appropriate basis.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management ("MAM"), a wholly-owned subsidiary of Muirfield
Investors, Inc. ("MII"), provides the Portfolio with investment management,
research, statistical and advisory services.
Mutual Funds Service Co. ("MFSCo"), a wholly-owned subsidiary of MII, serves as
stock transfer, dividend disbursing and shareholder services agent for the Fund.
In compensation for such services, the Fund pays MFSCo an annual fee equal to
the greater of $20 per active shareholder account or 0.06% of the Fund's average
daily net assets. MFSCo is entitled to receive an annual minimum fee of $4,000
from the Fund.
MFSCo provides the Trust with certain administrative services. In compensation
for such services, the Fund pays MFSCo an annual fee equal to 0.05% of the
Fund's average daily net assets.
MAM has voluntarily agreed to reimburse the Fund for the amount by which annual
expenses of the Fund including expenses allocated from its respective Portfolio
(excluding interest, taxes, brokerage fees, and extraordinary expenses) exceed
0.41% of average daily net assets of the Fund on an annual basis. Such
reimbursement is limited to the total of fees charged the Fund by MAM and MFSCo.
Pursuant to Rule 12b-1 of the Act, the Fund has adopted a Distribution Plan (the
"Plan"). Under the provisions of the Plan, the Fund may incur certain expenses
associated with the distribution of fund shares in amounts not to exceed 0.20%
of the average daily net assets of the Fund on an annual basis.
Certain officers of the Funds and trustees of the Trust and the Portfolios are
also officers or directors of MII, MAM and MFSCo.
<PAGE>
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 2000 (UNAUDITED)
Money
Market
Portfolio
Assets
Investments, at market value* $1,148,917,057
Repurchase agreements, at cost* 203,831,000
Trustee deferred compensation investments, at market value 44,623
Cash 675
Receivable from corresponding Fund 1,821,618
Interest and dividend receivable 2,394,824
Prepaid expenses/other assets 146,658
Total Assets 1,357,156,455
Liabilities
Payable for Trustee Deferred Compensation Plan 44,623
Payable to investment advisor 192,239
Accrued fund accounting fees 15,903
Other accrued liabilities 15,464
Total Liabilities 268,229
Total Net Assets $1,356,888,226
Net Assets
Capital 1,356,888,226
Total Net Assets $1,356,888,226
*Securities at cost $1,352,748,057
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
Money
Market
Portfolio
Net Investment Income
Interest $44,887,494
Total Net Investment Income 44,887,494
Expenses
Investment advisor 1,912,928
Accounting 92,102
Trustee 16,890
Audit 6,489
Custodian 53,143
Legal 1,181
Insurance 69,622
Other 3,713
Total Expenses 2,156,068
Investment advisor fees waived (807,397)
Total Net Expenses 1,348,671
Net Investment Income (Loss) 43,538,823
Realized and Unrealized Gain (Loss) from Investments
Net Increase (Decrease) in Net Assets Resulting from Operations $43,538,823
* Operations commenced on February 29, 2000.
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Six months
ended Year
6/30/00 ended
(unaudited) 12/31/99
Increase (Decrease) in Net Assets
Operations
<S> <C> <C>
Net investment income (loss) $43,538,823 $59,927,411
Net increase in net assets resulting from operations 43,538,823 59,927,411
Transactions of Investors' Beneficial Interests
Contributions 3,324,388,039 6,273,721,231
Withdrawals (3,115,235,238) (6,027,721,363)
Net increase (decrease) in net assets resulting from
transactions of investors' beneficial interests 209,152,801 245,999,868
Total Increase (Decrease) in Net Assets 252,691,624 305,927,279
Net Assets - Beginning of Period 1,104,196,602 798,269,323
Net Assets - End of Period $1,356,888,226 $1,104,196,602
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS
Ratios/ Supplementary Data
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO Six months Year Year Year Year Year
ended ended ended ended ended ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period ($000) $1,356,888 $1,104,197 $798,269 $587,019 $352,930 $256,126
Ratio of expenses to average net assets 0.18%(1) 0.18% 0.18% 0.18% 0.19% 0.21%
Ratio of net investment income to average net assets 5.90%(1) 5.07% 5.39% 5.47% 5.34% 5.87%
Ratio of expenses to average net assets 0.29%(1) 0.30% 0.30% 0.31% 0.33% 0.37%
before waiver of fees
Ratio of net investment income to average net assets 5.79%(1) 4.95% 5.27% 5.34% 5.20% 5.70%
before waiver of fees
<FN>
(1) Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE MONEY MARKET FUND SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
1. ORGANIZATION
The Money Market Fund (the "Fund") invests all of its investable assets in a
corresponding open-end management investment company (a "Portfolio") having the
same investment objective as the Fund. The Portfolio is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a no-load, open-end
management investment company which was organized as a trust under the laws of
the State of New York. The Declaration of Trust permits the Trustees to issue
beneficial interests in the Portfolio.
The investment objective of the Money Market Portfolio is to seek current income
and stable net asset values through investment in a portfolio of money market
instruments. The financial statements of the Fund are included elsewhere in this
report.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
INVESTMENTS
Money market securities held in the Portfolio are valued at amortized cost,
which approximates market value.
REPURCHASE AGREEMENTS
The Portfolio may engage in repurchase agreement transactions whereby the
Portfolio takes possession of an underlying debt instrument subject to an
obligation of the seller to repurchase the instrument from the Portfolio and an
obligation of the Portfolio to resell the instrument at an agreed upon price and
term. At all times, the Portfolio maintains the value of collateral, including
accrued interest, at least 100% of the amount of the repurchase agreement, plus
accrued interest. If the seller defaults or the fair value of the collateral
declines, realization of the collateral by the Portfolios may be delayed or
limited.
DEFERRED TRUSTEE COMPENSATION
Under a Deferred Compensation Plan (the "Plan") non-interested Trustees may
elect to defer receipt of a portion of their annual compensation. Under the
Plan, deferred amounts are invested in the shares of the Flex-funds and Meeder
Advisor Funds. Deferred amounts remain in the Portfolios until distributed in
accordance with the Plan.
LETTER OF CREDIT
The Portfolio has pledged as collateral a U.S. Government Security, cash or
other high-grade debt security solely for the benefit of ICI Mutual Insurance
Co. for the Portfolio's fidelity bond coverage.
INCOME TAXES
The Portfolio will be treated as a partnership for Federal income tax purposes.
As such, each investor in the Portfolio will be subject to taxation on its share
of the Portfolio's ordinary income and capital gains. It is the Portfolio's
policy to comply with the requirements of the Internal Revenue Code applicable
to it. Therefore, no Federal income tax provision is required.
SECURITIES TRANSACTIONS
The Portfolio records security transactions on the trade date. Interest income
(including amortization of premium and accretion of discount) is recognized as
earned.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management ("MAM"), a wholly-owned subsidiary of Muirfield
Investors, Inc. ("MII"), provides the Portfolio with investment management,
research, statistical and advisory services. For such services the Portfolio
pays monthly a fee at the following annual rates: 0.40% of average daily net
assets up to $100 million and 0.25% of average daily net assets exceeding $100
million. During the six months ended June 30, 2000, MAM voluntarily waived a
portion of its investment advisory fees in the Portfolio.
Mutual Funds Service Co. ("MFSCo"), a wholly-owned subsidiary of MII, serves as
accounting services agent for the Portfolio. In compensation for such services,
each Portfolio pays MFSCo an annual fee equal to the greater of:
a. 0.15% of the first $10 million of average daily net assets,
0.10% of the next $20 million of average daily net assets,
0.02% of the next $50 million of average daily net assets, and
0.01% in excess of $80 million of average daily net assets, or
b. $30,000.
Certain officers and trustees of the Portfolios are also officers or directors
of MII, MAM and MFSCo.
4. SECURITIES TRANSACTIONS
As of June 30, 2000, the aggregate cost basis of investments for Federal income
tax was $1,352,748,057
