MONITREND
MUTUAL FUND
GROWTH & INCOME
GOLD
GOVERNMENT INCOME
GROWTH
GAMING & LEISURE
TECHNOLOGY
PIA ADJUSTABLE RATE GOVERNMENT SECURITIES
SERIES
Monitrend
MUTUAL FUND
ANNUAL REPORT - November 30, 1996
<PAGE>
MONITREND
MUTUAL FUND
GROWTH & INCOME
GOLD
GOVERNMENT INCOME
GROWTH
GAMING & LEISURE
TECHNOLOGY
PIA ADJUSTABLE RATE GOVERNMENT SECURITIES
SERIES
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996
GROWTH & INCOME FUND
<C> <S> <C>
Shares Value
- ------- -----
COMMON STOCKS 93.91%
Aerospace & Defense .75%
480 Ball Corporation ........... $ 11,760
Airlines 3.33%
190 AMR Corporation Delaware*... 17,338
220 Delta Airlines.............. 16,555
730 Southwest Airlines.......... 18,068
------
51,961
--------
Automobiles & Trucks 6.55%
500 Chrysler Corp.............. 17,750
230 Echlin Inc................. 7,734
480 Ford Motor Co.............. 15,720
290 General Motors Corp........ 16,711
280 Goodyear Tire & Rubber Co.. 13,580
240 Paccar Inc................. 16,020
150 TRW Inc.................... 14,606
-------
102,121
--------
Banking 7.96%
400 BancOne Corp............... 19,050
200 Bankamerica Corp........... 20,600
190 Citicorp................... 20,757
580 MBNA Corp.................. 23,417
280 Mellon Bank Corp........... 20,230
430 Norwest Corp............... 20,103
--------
$124,157
--------
Building Maintenance 1.10%
320 Dover Corporation......... 17,080
------
Business Machines 2.64%
335 Hewlett-Packard Co......... 18,048
145 International Business
Machines................ 23,109
------
41,157
------
Capital Goods 3.11%
380 Crane Co.................. 17,765
425 Deere & Co................ 18,966
280 Tandy Corporation......... 11,795
--------
48,526
--------
Chemicals 3.65%
160 Dow Chemical Co............ 13,400
200 Eastman Chemical Co........ 11,425
250 Great Lakes Chemical Corp.. 13,406
220 Raychem Corp............... 18,755
--------
56,986
--------
Consumer Durables 0.80%
250 Whirlpool Corp. 12,500
--------
Consumer Products 1.77%
280 American Brands Inc......... 13,370
500 American Greetings
Corp "A" ................ 14,156
--------
27,526
--------
Drugs 3.51%
760 Humana Inc.*............... 14,345
290 Merck & Co. Inc............ 24,070
400 Millipore Corp............. 16,350
------
54,765
-------
Electronics 2.92%
360 AMP Inc.................... 13,770
250 Intel Corp................. 31,703
--------
45,473
--------
See notes to financial statements
<PAGE>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996 (continued)
GROWTH & INCOME FUND (continued)
Shares Value
- ------- -----
Energy/Raw Materials 3.78%
380 Coastal Corp............... $ 18,287
830 Oryx Energy Co.*........... 17,223
310 Trinova.................... 11,315
400 USX Corp. (USX-US Steel)... 12,050
--------
58,875
--------
Engineering/Construction 1.97%
480 Browning Ferris Inds Inc... 12,900
225 Caterpillar Inc............ 17,803
--------
30,703
--------
Finance 10.17%
280 American Express Co........ 14,630
280 Beneficial Corp............ 17,395
630 Block, H&R Inc............. 18,427
330 Corestates Financial Corp.. 17,779
190 Federal Home Loan
Mortgage Corp............ 21,707
480 Federal National
Mortgage Assn............ 19,800
250 Golden West Financial Corp. 16,875
250 Merrill Lynch & Co. Inc.... 20,063
150 Transamerica Corp.......... 11,906
------
158,582
-------
Food & Beverages 2.81%
150 Kimberly Clark Corp........ 14,662
155 Philip Morris Cos Inc...... 15,984
620 Wendy's Intl. Inc.......... 13,253
-------
43,899
-------
Forest Products 0.83%
280 Weyerhaeuser Co............ 12,880
-------
Healthcare 1.68%
337 Columbia/HCA Healthcare
Corp................... 13,480
570 Tenet Healthcare Corp.*... 12,754
-------
26,234
-------
Home Building & Supplies 1.59%
280 Owens-Corning*............ 12,005
420 Pulte Homes Corp.......... 12,863
------
24,868
-------
Insurance 8.57%
300 Allstate Corp............... 18,075
157 American Int'l Group........ 18,055
300 Chubb Corp.................. 16,275
100 General RE Corp............. 16,875
230 Loews Corp.................. 21,333
380 Safeco Corp................. 15,865
280 Torchmark Corp.............. 14,560
280 Travelers Inc............... 12,600
-------
133,638
-------
Manufacturing 1.05%
700 ITT Industries Inc......... 16,363
-------
Medical Equipment 1.75%
770 Biomet Inc................. 12,753
330 Mallinckrodt Inc........... 14,520
-------
27,273
-------
Miscellaneous 3.20%
540 Dana Corporation........... 16,807
200 Johnson Controls Inc....... 15,500
540 UST Inc.................... 17,618
-------
49,925
-------
<PAGE>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996 (continued)
GROWTH & INCOME FUND (continued)
Shares Value
- ------- -----
Non-Ferrous Metals 1.75%
400 Asarco Inc................. $10,900
360 Timken Co.................. 16,425
-------
27,325
-------
Oil & Gas 3.72%
190 Amoco Corp................. 14,749
520 Sun Oil Co................. 13,000
280 Tenneco Inc................ 14,280
700 USX Marathon Group......... 16,012
-------
58,041
-------
Packaging/Paper Products 0.94%
950 Stone Container Corp....... 14,606
-------
Railroads 0.75%
130 Burlington Northern
Santa Fe Corp............ 11,684
-------
Retail 3.10%
380 Hasbro Inc................. 15,628
770 Limited Inc................ 13,860
810 Price/Costco Inc........... 18,883
-------
48,371
-------
Semiconductor/Computer 1.16%
600 LSI Logic Corporation*..... 18,075
-------
Telecommunications 2.80%
610 MCI Communications Corp.... 18,643
330 Sprint Corp................ 13,819
360 US West Inc.
Communications Group.... 11,250
-------
43,712
-------
Transportation 2.76%
340 CSX Corp................... 15,895
320 Federal Express*........... 14,160
430 Ryder System Inc........... 13,061
------
43,116
------
Utilities 1.44%
510 Panenergy Corp............. 22,440
------
TOTAL COMMON STOCKS
(cost $1,136,440)........ 1,464,622
---------
SHORT TERM INVESTMENTS 4.68%
73,000 Star Treasury Fund
(cost $73,000)............ 73,000
------
TOTAL INVESTMENTS 98.59%
(cost $1,209,440)........ 1,537,622
Other assets less liabilities............1.41% 21,937
---------
TOTAL NET ASSETS ......................100.00% 1,559,559
=========
GOLD FUND
Shares Value
- ------- -----
COMMON STOCKS 95.59%
Gold & Precious Metal 95.59%
13,000 Amax Gold Inc.*........... 78,000
5,000 Alta Gold Co.*............ 19,531
6,000 Barrick Gold Corp......... 180,000
6,000 Battle Mountain Gold Co... 43,500
3,500 Coeur D'Alene Mines Corp.. 51,187
12,500 Canyon Resources Corp.*... 32,031
5,000 Crown Resources Corp.*.... 27,500
See notes to Financial Statements
<PAGE>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996 (continued)
GOLD FUND (continued)
Shares Value
- ------- -----
13,300 Dayton, Inc.*............ $ 72,583
20,000 El Callao Mining Corp.*.. 24,057
2,000 Euro-Nevada Mining*...... 54,945
8,000 Gold Corp Inc.*.......... 70,000
10,000 Golden Queen
Mining Ltd.*........... 17,820
10,000 Homestake Mining Co...... 151,250
4,000 Miramar Mining Corp.*.... 19,305
3,500 Newmont Mining Corp...... 167,562
25,000 Omni Resources Inc.*..... 14,850
4,500 Placer Dome Inc.......... 106,313
2,500 Pioneer Group............ 60,469
10,000 Richmont Mines Inc.*..... 43,065
10,000 River Gold Mines Ltd.*... 29,700
5,000 Santa Fe Pacific
Gold Corp............. 57,500
30,000 South American Gold &
Copper Ltd.*.......... 42,991
4,000 Stillwater Mining Co.*... 69,500
8,000 USMX Inc.*............... 12,000
99,500 Venoro Gold Corp.,
Class "A" *........... 17,731
------
1,463,390
---------
Non-Ferrous Metal 0.00%
100,000 Banner Mining Corp.*..... 0
---------
TOTAL COMMON STOCKS
(cost $1,706,649)..... 1,463,390
---------
SHORT TERM INVESTMENTS 4.63%
70,886 Star Treasury Fund
(cost $70,886)........ 70,886
---------
TOTAL INVESTMENTS ....................100.22%
(cost $1,777,535) 1,534,276
Other assets less liabilities......... (0.22)% (3,409)
---------
TOTAL NET ASSETS .....................100.00% 1,530,868
=========
GOVERNMENT INCOME FUND
Principal
Value Value
- ------- -----
LONG TERM INVESTMENTS 74.43%
Asset Backed 12.34%
30,000 Prudential 1993-59 A5 7.125%
due 12/25/20............ $ 29,700
75,000 Structured Asset Sec 6.87%
due 08/25/26............ 74,719
45,000 W.R. Berkley, 9.875%
due 05/15/08............ 55,158
---------
159,577
---------
Corporate 8.64%
100,000 Westvaco 10.125%,
due 06/01/19............ 111,640
---------
Government Agencies 17.30%
158,957 FNMA CMO 11.00%, due
04/25/07................ 158,799
22,734 GNMA 9.50%, due 09/15/19... 24,893
39,324 GNMA Arm Pool 8927 6.50%,
due 07/20/26............. 39,987
---------
223,679
---------
U.S. Government Securities 36.15%
180,000 U.S. Treasury Notes 6.50%
due 05/15/05............ 185,569
290,000 U.S. Treasury Bond 6.25%
due 08/15/23............ 281,753
---------
467,322
---------
TOTAL LONG TERM INVESTMENTS
(cost $933,180) 962,218
---------
SHORT TERM INVESTMENTS 4.54%
15,000 U.S. Treasury Bill, due
05/29/97................... 14,628
44,000 Star Treasury Fund......... 44,000
---------
TOTAL SHORT TERM INVESTMENTS
(cost $58,593).......... 58,628
---------
<PAGE>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996 (continued)
GOVERNMENT INCOME FUND (continued)
Principal
Value Value
- ------- -----
TOTAL INVESTMENTS......................78.97%
(cost $991,773)........... $1,020,846
Other assets less liabilities..........21.03% 271,915
---------
TOTAL NET ASSETS......................100.00% 1,292,761
---------
GROWTH FUND
Shares Value
- ------- -----
COMMON STOCKS 94.43%
Auto Parts 2.76%
800 Autozone Inc.*............. 19,700
Biotechnology 5.10%
600 Quintriles Trans
Nat'l.Corp.*........... 36,450
Building Supplies 2.92%
400 Home Depot Inc............. 20,850
Clothing & Apparel 2.04%
1,000 Urban Outfitters Inc.*.... 14,625
Communication 12.07%
730 Ascend Communications
Inc.*.................. 51,967
1,090 Hummingbird
Communication Ltd.*.... 34,403
--------
86,370
--------
Computer Hardware 11.50%
400 CDW Computer Centers Inc.*. 26,650
800 Cabletron Systems Inc.*.... 32,300
400 Sun Microsystems*.......... 23,275
--------
82,225
--------
Computer Software 16.06%
800 Cisco Systems Inc.*........ 54,350
1,000 Informix Corp.*............ 23,687
750 Oracle Corp.*.............. 36,844
-------
114,881
-------
Drugs and Hospital Supplies 12.33%
1,000 Arterial Vascular
Engineering*............. 17,062
1,400 Gulf South Medical Supply*. 40,775
780 Watson
Pharmaceutical Inc.*..... 30,371
-------
88,208
-------
Manufacturing 6.54%
1,260 Sawtek, Inc.*.............. 46,778
-------
Miscellaneous 4.84%
1,100 P-Com Inc.*................ 34,650
Retail 8.41%
1,080 Bed Bath & Beyond Inc.*.... 28,283
800 Kohl's Corp.*.............. 31,900
-------
60,183
-------
Technology 9.86%
660 CBT Group*................ 37,950
730 Synopsis*................. 32,576
-------
70,526
-------
TOTAL COMMON STOCKS
(cost $410,315)........ 675,446
-------
SHORT TERM INVESTMENTS 3.50%
25,000 Star Treasury Fund
(cost $25,000)......... 25,000
-------
<PAGE>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996 (continued)
GROWTH FUND (continued)
Shares Value
- ------- -----
TOTAL INVESTMENTS...................... 97.93%
(cost $435,315)......... $ 700,446
Other assets less liabilities............2.07% 14,840
-------
TOTAL NET ASSETS.......................100.00% 715,286
=======
GAMING AND LEISURE FUND
Shares Value
- ------- -----
COMMON STOCKS 30.72%
Casino/Hotel 12.77%
1,000 Casino America Inc.*......... 3,500
700 Harrah's Entertainment Inc.*. 12,425
500 Harvey's Casino Resorts...... 8,312
500 Station Casinos Inc.*........ 5,313
-------
29,550
-------
Casinos 4.54%
700 Rio Hotel & Casino Inc.*.... 10,500
-------
Supplies 3.49%
1,000 Paul-son Gaming Inc.*....... 8,062
-------
Technology 3.85%
675 Casino Data Systems*........ 8,902
-------
Video Games Manufacturers 6.07%
3,000 Alliance Gaming Corp.*...... 10,594
500 Mikohn Gaming Corp.*........ 3,437
-------
14,031
-------
TOTAL COMMON STOCKS
(cost $111,100).......... $ 71,045
-------
SHORT TERM INVESTMENTS 8.65%
20,000 Star Treasury Fund
(cost $20,000)........... 20,000
-------
TOTAL INVESTMENTS........................39.37%
(cost $131,100).......... 91,045
Other assets less liabilities............60.63% 140,200
-------
TOTAL NET ASSETS..................... 100.00% 231,245
=======
TECHNOLOGY FUND (continued)
Shares Value
- ------- -----
COMMON STOCKS 87.95%
Biotechnology 4.03%
1,000 Cor Therapeutics Inc*....... 10,563
2,000 Sugen, Inc.*................ 25,125
-------
35,688
-------
Communications 4.32%
800 Level One
Communications Inc.*..... 27,500
600 Octel Communications
Corp.*................... 10,800
------
38,300
------
Computers 17.87%
2,000 Adaptive Solutions Inc.*.... 2,469
500 Adobe Systems Inc........... 19,781
2,000 Diamond Multimedia
Systems Inc.*............ 25,500
200 Intel Corp.................. 25,362
1,000 Read-Rite Corp.............. 22,187
1,000 Seagate Technology Inc.*.... 39,500
See notes to financial statements
<PAGE>
MONITREND MUTUAL FUND
Schedule of Investments - November 30, 1996 (continued)
TECHNOLOGY FUND (continued)
Shares Value
- ------- -----
1,000 Sequent Computer
Systems Inc.*........... $ 16,937
1,000 Sonic Solutions*........... 6,688
--------
158,424
--------
Medical Devices 9.85%
2,000 Abaxis Inc.*................ 6,812
300 Biocircuits Corp.*.......... 853
5,000 Cytel Corp.*................ 19,219
400 Human Genome Sciences Inc.*. 14,700
5,000 InSite Vision Inc.*......... 21,719
1,500 Sequana Therapeutics Inc.*.. 24,000
--------
87,303
--------
Pharmaceuticals 22.93%
1,000 Amylin Pharmaceuticals
Inc.*.................... 12,062
5,000 Anergen Inc.*............... 16,562
1,500 Arris Pharmaceuticals
Corp.*................... 19,594
4,000 Celtrix Pharmaceuticals
Inc.*.................... 8,500
1,200 Chiron Corp.*............... 23,325
2,000 Cocensys Inc.*.............. 12,125
800 Cortex Pharmaceuticals
Inc.*.................... 4,050
2,000 Corvas International Inc.*.. 8,250
1,500 Isis Pharmaceuticals*....... 24,375
1,500 Ligand Pharmaceutical Inc.*. 18,094
2,000 Ribozyme Pharmaceuticals
Inc.*.................... 22,875
1,800 Vical Inc.*................. 33,525
--------
203,337
--------
Semi-Conductors 24.45%
800 Applied Materials Inc.*..... 30,600
1,000 Cirrus Logic Inc.*.......... 19,687
2,000 Cypress Semiconductors Corp. 24,500
2,500 Genus Inc.*................. 17,188
2,500 Intergrated Device
Tech Inc.*............... 31,094
6,000 Mattson Technology Inc.*.... 62,625
2,000 Plasma & Materials
Technologies Inc.*...... 31,000
--------
216,694
--------
Software 3.16%
4,000 Ross Systems Inc.* ........ 28,000
--------
Telecommunications 1.34%
2,500 Euphonix Inc.* ............ 11,875
--------
TOTAL COMMON STOCKS
(cost $667,624)........... 779,621
--------
SHORT TERM INVESTMENTS 2.80%
24,823 Star Treasury Fund
(cost $24,823) ........... 24,823
--------
TOTAL INVESTMENTS .....................90.75%
(cost $692,447).......... 804,444
COMMON STOCKS SOLD SHORT
(200) Qualcomm Inc........(.94%) (8,375)
Other assets less liabilities..........10.19% 90,295
--------
TOTAL NET ASSETS .....................100.00% 886,364
=======
See notes to financial statements
LONG TERM INVESTMENTS 75.23%
Adjustable Rate Securities 68.90%
16,741 Bear Stearns 1987-2B,
due 02/20/15............... $ 16,762
500,000 FHLB L-1998, due 01/15/98..... 491,562
77,734 FHLMC 1300 FA, due 07/15/04... 77,734
632,760 FHLMC 609231, due 02/01/24.... 646,997
572,175 FHLMC ARM 755204, due 08/01/15 589,341
250,000 FHLMC CMO 1210 F, due 01/15/18 251,563
27,189 FHLMC CMO 1492FD, due 03/15/23 26,645
11,000,000 GNMA ARM 80013, due 11/20/26.. 11,285,312
206,451 GNMA ARM 8927, due 07/20/26... 209,935
495,811 GNMA ARM 8951, due 08/20/26... 504,178
-----------
14,100,029
-----------
Collateralized Mortgage Obligations 4.69%
100,000 FNMA 92-143 G, 6.75%,
due 10/25/18............... 100,375
24,462 FNMA CMO 90-91 E, 7.30%,
due 01/25/16............... 24,462
847,680 FNMA CMO 91-113 F, 5.189%,
due 03/25/02............... 835,230
-----------
960,067
-----------
Miscellaneous 1.52%
55,852 FNMA 91-121 F, due 09/25/98... 55,887
56,724 FNMA 91-79, due 07/25/98...... 56,830
200,000 Prudential Home Ser 1993-59,
due 12/25/20............... 198,000
-----------
310,717
-----------
U.S. Treasury Notes 0.12%
25,000 U.S. Treasury Note 8.50%,
due 05/15/97............... $ 25,367
-----------
TOTAL LONG TERM INVESTMENTS
(cost $15,304,875)............. 15,396,179
-----------
SHORT TERM INVESTMENTS 23.73%
175,000 Star Treasury Fund............ 175,000
4,900,000 U.S. Treasury Bill,
due 10/16/97............... 4,680,549
-----------
TOTAL SHORT TERM INVESTMENTS
(cost $4,851,390)............. 4,855,549
-----------
TOTAL INVESTMENTS.......................... 98.96%
(cost $20,156,265)............ 20,251,728
Other assets less liabilities............... 1.04% 212,444
-----------
TOTAL NET ASSETS.......................... 100.00% $20,464,172
===========
<FN>
* Non income producing security
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Statement of Assets and Liabilities - November 30, 1996
<S> <C> <C> <C>
GROWTH & GOVERNMENT
INCOME GOLD INCOME
Assets
Investments in securities, at value (See Note 5).......... $1,537,622 $1,534,276 $1,020,846
Cash...................................................... 26,882 4,000 265,333
Receivable for securities sold............................ 19,531 0 0
Receivable for fund shares sold .......................... 0 0 380
Income receivable......................................... 3,615 1,279 13,684
Due from investment advisers ............................. 3,163 2,835 7,129
Prepaid expenses and other................................ 0 0 0
--------- --------- ---------
Total Assets ........................................ 1,590,813 1,542,390 1,307,372
--------- --------- ---------
Liabilities
Securities sold short, at value........................... 0 0 0
Payable for securities purchased ......................... 0 0 0
Accrued expenses and other................................ 31,254 11,522 8,906
Dividends payable......................................... 0 0 5,705
Due to investment advisers................................ 0 0 0
--------- ------- -------
Total Liabilities.................................... 31,254 11,522 14,611
--------- ------- -------
Net Assets
Capital stock, no par value; unlimited shares authorized;
shares outstanding*.................................... 1,356,488 3,875,133 1,574,439
Undistributed net investment income....................... 174 0 71
Accumulated net realized gain (loss) on investments....... (125,285) (2,101,006) (310,822)
Net unrealized appreciation (depreciation) on
investments............................................ 328,182 (243,259) 29,073
--------- --------- ---------
Net Assets........................................... $1,559,559 $1,530,868 $1,292,761
========= ========= =========
Calculation of Maximum Offering Price
Net asset value and redemption price per share........... $ 26.64 $ 8.29 $ 13.59
Maximum sales charge
(4.50% of offering price; 1.25% for PIA Adjustable
Rate Series).......................................... 1.26 .39 .64
--------- --------- -------
Offering price to public................................. $ 27.90 $ 8.68 $ 14.23
========= ========= =======
*Shares outstanding...................................... 58,539 184,624 95,121
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Statement of Assets and Liabilities - November 30, 1996
<S> <C> <C> <C> <C>
PIA
GAMING & ADJUSTABLE RATE
GROWTH LEISURE TECHNOLOGY GOVERNMENT SECURITIES
Assets
Investments in securities, at value (See Note 5).......... $700,446 $ 91,045 $ 804,444 $20,251,728
Cash...................................................... 19,662 136,869 74,406 199,090
Receivable for securities sold............................ 0 0 0 0
Receivable for fund shares sold .......................... 0 0 0 0
Income receivable......................................... 90 85 100 99,395
Due from investment advisers ............................. 3,948 4,125 3,410 0
Prepaid expenses and other................................ 0 4,063 19,092 5,815
------- ------- ------- ----------
Total Assets ......................................... 724,146 236,187 901,452 20,556,028
------- ------- ------- ----------
Liabilities
Securities sold short, at value........................... 0 0 8,375 0
Payable for securities purchased ......................... 0 0 0 83,202
Accrued expenses and other................................ 8,860 4,942 6,713 6,620
Dividends payable......................................... 0 0 0 0
Due to investment advisers................................ 0 0 0 2,034
----- ----- ------ ------
Total Liabilities.................................... 8,860 4,942 15,088 91,856
----- ----- ------ ------
Net Assets
Capital stock, no par value; unlimited shares authorized;
shares outstanding*.................................... 422,714 335,353 747,771 20,352,952
Undistributed net investment income....................... 0 0 0 0
Accumulated net realized gain (loss) on investments....... 27,441 (64,053) 28,148 15,757
Net unrealized appreciation (depreciation) on
investments............................................ 265,131 (40,055) 110,445 95,463
-------- ------- ------- ----------
Net Assets........................................... $ 715,286 $ 231,245 $ 886,364 $20,464,172
-------- ------- ------- ----------
Calculation of Maximum Offering Price
Net asset value and redemption price per share............ $19.63 $ 7.19 $ 20.51 $ 10.21
Maximum sales charge
(4.50% of offering price; 1.25% for PIA Adjustable
Rate Series)............................................ .92 .34 .97 .13
Offering price to public.................................. $20.55 $7.53 $21.48 $ 10.34
*Shares outstanding....................................... 36,442 32,161 43,226 2,003,642
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Statement of Operations -For the Year Ended November 30, 1996
<S> <C> <C> <C>
GROWTH & GOVERNMENT
INCOME GOLD INCOME
Investment Income
Interest............................................. $ 2,129 $ 3,188 $ 63,292
Dividends............................................ 31,795 4,871 0
Other income ........................................ 106 169 104
------ ----- ------
Total investment income 34,030 8,228 63,396
------ ----- ------
Expenses
Distributor fees (Note 4)............................ 11,998 11,658 795
Adviser & sub-adviser fees (Note 3).................. 9,258 12,617 3,924
Transfer agent fees ................................. 9,327 9,378 9,485
Administrative fees (Note 3)......................... 14,407 16,325 15,582
Custodian fees ...................................... 1,654 1,679 1,663
Audit fees .......................................... 8,620 8,019 7,722
Legal fees .......................................... 5,440 7,565 5,587
Registration fees ................................... 7,170 3,877 4,510
Trustees' fees ...................................... 0 1,298 539
Insurance expense ................................... 1,187 1,080 569
Printing expense..................................... 3,743 1,003 3,228
Amortization of deferred organization expenses....... 0 0 0
Postage expense...................................... 1,035 975 932
Other expenses....................................... 1,949 2,330 1,477
------ ------ ------
Total expenses....................................... 75,788 77,804 56,014
Less: Expense reimbursement from adviser and
sub-adviser ...................................... (42,311) (47,852) (45,409)
------ ------ ------
Net expenses......................................... 33,477 29,952 10,605
------ ------ ------
Net Investment Income (Loss)......................... 553 (21,724) 52,791
------ ------ ------
Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on Investments.............. 212,958 214,071 (16,768)
Net Change in Unrealized Appreciation on Investments. 106,973 (126,563) 7,296
------- ------- ------
Net Gain (Loss) on Investments....................... 319,931 87,508 (9,472)
======== ======== =======
Net Increase (Decrease) in Net Assets Resulting from
Operations ....................................... $ 320,484 $ 65,784 $ 43,319
======== ========= =========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Statement of Operations -For the Year Ended November 30, 1996
<S> <C> <C> <C> <C>
PIA
GAMING & ADJUSTABLE RATE
GROWTH LEISURE TECHNOLOGY GOVERNMENT SECURITIES
Investment Income
Interest............................................... $ 664 $ 925 $1,054 $ 324,249
Dividends.............................................. 115 130 106 0
Other income .......................................... 104 105 432 0
----- ----- ----- -------
Total investment income........................... 883 1,160 1,592 324,249
----- ----- ----- -------
Expenses
Distributor fees (Note 4).............................. 4,103 2,576 5,154 2,377
Adviser & sub-adviser fees (Note 3).................... 5,136 4,318 5,770 18,898
Transfer agent fees ................................... 8,995 8,883 9,139 8,901
Administrative fees (Note 3)........................... 15,637 15,841 16,238 15,435
Custodian fees......................................... 1,686 1,558 1,711 1,905
Audit fees ............................................ 7,316 3,514 5,487 3,058
Legal fees ............................................ 5,788 5,721 5,895 5,404
Registration fees...................................... 5,827 3,503 2,422 2,276
Trustees' fees ....................................... 1,144 891 1,501 0
Insurance expense...................................... 458 552 199 453
Printing expense....................................... 3,082 2,257 3,215 3,170
Amortization of deferred organization expenses......... 0 2,039 2,039 0
Postage expense........................................ 825 810 812 723
Other expenses......................................... 310 307 835 2,238
------ ------ ------ ------
Total expenses ........................................ 60,307 52,770 60,417 64,838
Less: Expense reimbursement from adviser
and sub-adviser .................................... (48,756) (43,630) (46,897) (40,863)
------ ------ ------- ------
Net expenses .......................................... 11,551 9,140 13,520 23,975
------ ------ ------ ------
Net Investment Income (Loss)........................... (10,668) (7,980) (11,928) 300,274
------ ----- ------ -------
Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on Investments ............... 89,453 49,534 20,751 19,098
Net Change in Unrealized Appreciation on Investments... 41,380 (10,287) 87,955 87,797
------- ------ ------- -------
Net Gain (Loss) on Investments......................... 130,833 39,247 108,706 106,895
------- ------ ------- -------
Net Increase (Decrease) in Net Assets Resulting from
Operations............................................. $ 120,165 $ 31,267 $ 96,778 $407,169
======= ======= ======= =======
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Statement of Changes in Net Assets
GOVERNMENT
GROWTH & INCOME GOLD INCOME
For the For the For the For the For the For the
year ended year ended year ended year ended year ended year ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss).......... $ 553 $ 1,430 $(21,724) $ (7,698) $ 52,791 $ 56,283
Net realized gain (loss) on
investments........................ 212,958 394,222 214,071 (87,795) (16,768) (12,593)
Net change in unrealized appreciation
on investments..................... 106,973 (24,831) (126,563) 115,564 7,296 90,339
------- ------- ------- ------- ------
Net increase (decrease) in net assets
resulting from operations.......... 320,484 370,821 65,784 20,071 43,319 134,029
------- ------- ------- ------- ------
Net equalization (debits) credits..... 0 0 0 0 1,072 (369)
------- ------- ------- ------- ------ -------
Dividends Paid to Shareholders
Dividends from net investment income.. (1,285) (8,456) 0 0 (54,239) (55,964)
Dividends from capital gain........... 0 0 0 0 0 0
------ ------- ------- ------- ------ --------
(1,285) (8,456) 0 0 (54,239) (55,964)
------ ------- ------- ------- ------ --------
Fund Share Transactions
Net proceeds from shares sold......... 326,564 4,071 2,501,816 20,240 453,736 154,436
Dividends reinvested.................. 1,195 7,890 0 0 39,722 50,369
Payment for shares redeemed........... (464,611) (570,935) (1,457,789) (893,434) (137,564) (217,388)
-------- ------- --------- ------- ------- -------
Net increase (decrease) in net assets
from fund share transactions....... (136,852) (558,974) 1,044,027 (873,194) 355,894 (12,583)
-------- ------- --------- ------- ------- -------
Net increase (decrease) in net assets. 182,347 (196,609) 1,109,811 (853,123) 346,046 65,113
NET ASSETS, Beginning of Period....... 1,377,212 1,573,821 421,057 1,274,180 946,715 881,602
-------- --------- --------- --------- --------- -------
NET ASSETS, End of Period.............$1,559,559 $1,377,212 $1,530,868 $ 421,057 $1,292,761 $ 946,715
======== ========= ========= ======== ========= =======
Changes in Shares Outstanding
Shares sold........................... 13,949 228 266,932 3,947 34,168 11,849
Shares issued on reinvestment
of dividends....................... 56 472 0 0 2,948 3,790
Shares redeemed....................... (19,771) (30,797) (153,575) (149,906) (10,221) (16,488)
-------- ------- --------- ------- ------- -------
Net increase (decrease) in
shares outstanding................. (5,766) (30,097) 113,357 (145,959) 26,895 (849)
======== ========= ========= ======== =========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
Statement of Changes in Net Assets
PIA
ADJUSTABLE RATE
GROWTH GAMING & LEISURE TECHNOLOGY GOVERNMENT SECURITIES
For the For the For the For the For the For the For the For the
year ended year ended year ended year ended year ended year ended year ended period ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1996 1995 1996 1995 1996 1995 1996 1995*
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operations
Net investment income (loss).......$ (10,668) $ (11,564) $ (7,980) $ (14,108) $ (11,928) $ (5,180) $ 300,274 $ 128,588
Net realized gain (loss) on
investments....................... 89,453 6,015 49,534 (61,506) 20,751 32,371 19,098 26,187
Net change in unrealized appreciation
on investments.................... 41,380 169,154 (10,287) 169,021 87,955 32,568 87,797 9,128
------- ------- ------ ------ ------ ------ ------- -------
Net increase (decrease) in net assets
resulting from operations.........120,165 163,605 31,267 93,407 96,778 59,759 407,169 163,903
------- ------- ------ ------ ------ ------ ------- -------
Net equalization (debits) credits.... 0 0 0 0 0 0 0 0
------- ------- ------ ------ ------ ------ ------- -------
Dividends Paid to Shareholders
Dividends from net investment income. 0 0 0 0 0 (6,614) (300,274) (128,588)
Dividends from capital gain.......... 0 0 0 0 (28,439) 0 (29,522) (860)
------- ------- ------ ------ ------ ------ ------- -------
Dividends from net investment income. 0 0 0 0 (28,439) (6,614) (329,796) (129,448)
------- ------- ------ ------ ------ ------ ------- -------
Fund Share Transactions
Net proceeds from shares sold........ 246,344 20,782 55,339 25,438 604,440 57,649 17,827,441 3,149,716
Dividends reinvested................. 0 0 0 0 28,186 6,320 247,478 98,158
Payment for shares redeemed..........(177,649) (268,364) (255,567) (542,841) (95,434) (119,766) (1,093,071 (1,919,246)
-------- ------- ------ ------ ------ ------ ------- -------
Net increase (decrease) in net assets
from fund share transactions...... 68,695 (247,582) (200,228) (517,403) 537,192 (55,797) 16,981,848 1,328,628
-------- ------- ------ ------ ------ ------ ------- -------
Net increase (decrease) in net assets 188,860 (83,977) (168,961) (423,996) 605,531 (2,652) 17,059,221 1,363,083
NET ASSETS, Beginning of Period...... 526,426 610,403 400,206 824,202 280,833 283,485 3,404,951 2,041,868
------- ------- ------ ------- ------- ------- ---------- ---------
NET ASSETS, End of Period............$715,286 $ 526,426 $ 231,245 $ 400,206 $ 886,364 $ 280,833 $20,464,172 $3,404,951
======= ======= ======= ======= ======= ======= ========== =========
Changes in Shares Outstanding
Shares sold.......................... 13,446 1,749 7,403 3,912 30,965 3,426 1,751,176 313,157
Shares issued on reinvestment
of dividends...................... 0 0 0 0 1,551 452 24,510 9,771
Shares redeemed...................... (11,283) (22,376) (34,577) (79,221) (5,056) (7,868) (108,439) (191,073)
------- ------- ------ ------- ------- ------- ---------- ---------
Net increase (decrease) in
shares outstanding................ 2,163 (20,627) (27,174) (75,309) 27,460 (3,990) 1,667,247 (131,855)
======= ======= ======= ======= ======= ======= ========== =========
<FN>
* Commencement of operations April 22, 1994.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
MONITREND MUTUAL FUND
Notes to Financial Statements - November 30, 1996
Note 1. Organization
Monitrend Mutual Fund (the "Fund") is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Trust was organized as a Massachusetts business trust on January 6,
1984 and consists of seven series of shares: the Growth & Income Series, the
Gold Series, the Government Income Series, the Growth Series, the Gaming and
Leisure Series, the Technology Series and the PIA Adjustable Rate Government
Securities Series (collectively the "Series"), each of which has separate assets
and liabilities and differing investment objectives. The investment objective
for each of the series are: (1) the Growth & Income Series, to maximize total
return through a combination of capital appreciation and income; (2) the Gold
Series, long-term growth of capital through investing primarily in equity
securities of domestic and foreign companies engaged in activities related to
gold and precious metals; (3) the PIA - Monitrend Government Income Series,
growth of capital, whether over the short or long-term, income and preservation
of capital; (4) the Growth Series, long-term growth of capital; (5) the Gaming
and Leisure Series, long-term growth of capital through investing primarily in
equity securities of companies engaged in activities related to the gaming and
leisure industry; (6) the Technology Series, long-term growth of capital through
investing primarily in equity securities of companies that its investment
adviser believes can produce products or services that provide or benefit from
advances in technology; (7) the PIA Adjustable Rate Government Securities Fund
Series, to provide a high level of current income, consistent with low
volatility of principal through investing in adjustable rate securities issued
or guaranteed by the U.S. Government, its agencies or instrumentalities.
Note 2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Series in the preparation of its financial statements.
Security Valuation--Portfolio securities that are listed on the
national securities exchanges are valued at the last sale price as of 4:20 p.m.,
Eastern time, or, in the absence of recorded sales, at the average of readily
available closing bid and asked prices on such exchanges. Unlisted securities
are valued at the average of the quoted bid and asked prices in the
over-the-counter market. Securities and other assets for which market quotations
are not readily available are valued at fair market value as determined in good
faith by the Adviser under procedures established by and under the general
supervision and responsibility of the Fund's Board of Trustees. Short-term
investments which mature in less than 60 days are valued at amortized cost
(unless the Board of Trustees determines that this method does not represent
fair market value). Short-term investments which mature after 60 days are valued
at market. Stock Index Futures, which are traded on commodities exchanges, are
valued at their last sales price as of the close of such commodities exchanges
(which is currently 4:15 p.m., Eastern time).
Options--When the Growth & Income or Gold Series ("Growth & Income/Gold")
writes a call, an amount equal to the premium received by Growth & Income/Gold
is included in Growth & Income/Gold's Statement of Assets and Liabilities and
as an equivalent liability. The amount of the liability is subsequently marked
to market to reflect the current market value of the option written. If an
option which Growth & Income/Gold has written either expires on its stipulated
expiration date, or Growth & Income/Gold enters into a closing purchase
transaction, Growth & Income/Gold realizes a gain (or loss if the cost of a
closing purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying security,
and the liability related to such option is extinguished. If a call option which
Growth & Income/Gold has written is exercised, Growth & Income/Gold realizes a
capital gain or loss from the sale of the underlying security and the proceeds
from such sale are increased by the premium originally received.
The premium paid by Growth & Income/Gold for the purchase of a call or
a put option is included in the asset section of Growth & Income/Gold's
Statement of Assets and Liabilities as an investment and is subsequently
adjusted to the current market value of the option. If an option which Growth &
Income/Gold has purchased expires on its stipulated expiration date, Growth &
Income/Gold will realize a loss in the amount of the cost of the option. If
Growth & Income/Gold enters into a closing sale transaction, Growth &
Income/Gold will realize a gain or loss depending on whether the sales proceeds
from the closing sale transaction are greater or less than the cost of the
option. If Growth & Income/Gold exercises a put option, it will realize a gain
or loss from the sale of the underlying security and the proceeds from such sale
will be decreased by the premium originally paid. If Growth & Income/Gold
exercises a call option, the cost of the security which Growth & Income/Gold
purchases upon exercise will be increased by the premium originally paid.
Stock Index Futures--The Growth & Income Series ("Growth & Income") may from
time to time enter into Stock Index Futures contracts as a hedge to provide
protection against adverse movements in the prices of securities in the
portfolio. A stock index assigns relative values to the common stocks included
in the index, and the index fluctuates with changes in the market value of the
common stocks so included. Upon entering into a stock index futures contract,
Growth & Income is required to pledge to the clearing broker an amount of cash
and/or securities equal to approximately 5% of the contract amount. This
amount is known as the "initial margin". Pursuant to the stock index futures
contract, Growth & Income agrees to take or make delivery of an amount of cash
equal to a specified dollar amount times the difference between the stock index
value at the close of the day and the price at which the futures contract was
originally struck. Such payments, known as the "variation margin", are recorded
by Growth & Income as unrealized gains or losses. When the futures contract
expires or is closed by Growth & Income, Growth & Income realizes a gain or
loss.
<PAGE>
MONITREND MUTUAL FUND
Notes to Financial Statements - November 30, 1996 (continued)
Financial Instruments with Off Balance Sheet Risk--Futures contracts
involve elements of market risk and credit risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The contract amounts of
these futures contracts reflect the extent of Growth & Income's exposure to off
balance sheet risk.
The predominant market risk is that movements in the prices of Growth &
Income's portfolio securities being hedged may not correlate perfectly with the
movement in the prices of the future contracts. The lack of correlation could
render Growth & Income's hedging strategy unsuccessful and could result in a
loss to Growth & Income.
Growth & Income purchases futures contracts only on exchanges. The exchange
acts as the counterparty to Growth & Income's futures transactions; therefore
Growth & Income's credit risk is limited to the failure of the exchange.
Treasury Bond Futures--The Government Income Series ("Government") may from
time to time enter into Treasury Bond futures contracts as a hedge to provide
protection against adverse movements in the prices of securities in the
portfolio. A Treasury Bond future assigns relative values to a $100,000 par
value of a 30 year U.S. Treasury Bond with an 8% coupon, and the value
fluctuates with changes in the market value of the government security so
included. Upon entering into a Treasury Bond futures contract, Government is
required to pledge to the clearing broker an amount of cash and/or securities
equal to approximately 5% of the contract amount. This amount is known as the
"initial margin". Pursuant to the Treasury Bond futures contract, Government
agrees to take or make delivery of an amount of cash equal to a specified dollar
amount times the difference between the treasury bond futures value at the close
of the day and the price at which the futures contract was originally struck.
Such payments, known as the "variation margin", are recorded by Government as
unrealized gains or losses. When the futures contract expires or is closed by
Government, Government realizes a gain or loss.
Federal Income Taxes--It is the Fund's policy to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable net income to its shareholders. Therefore the
Series paid no Federal income taxes and no Federal income tax provision was
required. At November 30, 1996, Growth & Income had a capital loss carry
forward of $1,172,145 expiring as follows: $330 in 1997, $414,384 in 1998,
$739,182 in 1999 and $18,249 in 2002. Gold had a capital loss carryover of
$2,099,578 expiring as follows: $193,276 in 1998, $95,110 in 1999, $335,282 in
2000, $348,419 in 2001, $1,039,696 in 2002 and $87,795 in 2003. Government had
a capital loss carry forward of $310,821 expiring as follows: $281,460 in 1998,
$12,593 in 2003 and $16,768 in 2004. The Gaming and Leisure Series ("Gaming")
had a capital loss carry forward of $64,053 expiring as follows: $2,547 in
2002 and $61,506 in 2003.
Other--Securities transactions are recorded no later than the first business
day after the trade date. Discounts and premiums on securities purchased are
amortized over the life of the respective security. Realized gains and losses
on sales of securities are calculated on the identified cost basis. Dividend
income is recorded on the ex-dividend date. Interest income is recorded on an
accrual basis.
Use of Estimates--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
Note 3. Investment Advisory and Administration Agreements
The Growth & Income Series has an investment advisory agreement with MidCap
Associates, Inc. ("MidCap") and a sub-advisory agreement with Monitrend
Investment Management, Inc. ("MIMI"). Growth & Income pays both MidCap and MIMI
a fee computed daily and payable monthly, at the following annual rate based
upon daily net assets:
<TABLE>
<S> <C> <C> <C>
Advisory Sub-Advisory Total
Assets Fee Rate Fee Rate Fee Rate
0 to $20 million .................. 0.250% 0.3875% 0.625%
$20 million to $150 million ....... 0.3875% 0.250% 0.625%
$150 million to $250 million ...... 0.300% 0.200% 0.500%
Over $250 million ................. 0.225% 0.150% 0.375%
</TABLE>
<PAGE>
MONITREND MUTUAL FUND
Notes to Financial Statements - November 30, 1996 (continued)
The Gold Series has both an advisory agreement and a sub-advisory agreement
with MIMI. Under the agreements, the Gold Series pays MIMI fees computed daily
and payable monthly, at the following annual rates based upon daily net assets:
<TABLE>
<S> <C> <C> <C>
Advisory Sub-Advisory Total
Assets Fee Rate Fee Rate Fee Rate
0 to $10 million ............. 0.900% 0.100% 1.000%
$10 million to $50 million.... 0.850% 0.150% 1.000%
$50 million to $75 million.... 0.750% 0.125% 0.875%
$75 million to $100 million... 0.640% 0.110% 0.750%
$100 million to $150 million.. 0.535% 0.090% 0.625%
$150 million to $250 million.. 0.425% 0.075% 0.500%
Over $250 million ............ 0.320% 0.055% 0.375%
</TABLE>
The Growth Series has an investment advisory agreement with MIMI. Growth pays
MIMI a fee computed daily and payable monthly, at the following annual rate
based upon daily net assets:
<TABLE>
<S> <C>
Assets Fee Rate
0 to $50 million....................... 1.000%
$50 million to $75 million............. 0.875%
$75 million to $100 million............ 0.750%
$100 million to $150 million........... 0.625%
$150 million to $250 million.......... 0.500%
Over $250 million...................... 0.375%
</TABLE>
Under a sub-advisory agreement between MIMI and sub-adviser (Robert L.
Bender, Inc.), MIMI is responsible for compensating the sub-adviser.
The Government Income Series has investment advisory agreements with MIMI
and Pacific Income Advisers, Inc. ("Pacific") at the following rates, based on
daily net assets:
<TABLE>
<S> <C> <C> <C>
MIMI's Pacific's Total
Assets Rate Rate Rate
0 to $50 million ........... 0.20% 0.20% 0.40%
Over $50 million............ 0.10% 0.30% 0.40%
</TABLE>
In the event that the average daily net assets of Government for any month is
less than $10 million, the total fee for that month will be paid to MIMI and
Pacific will receive no fee.
The Gaming and Leisure Series has an investment advisory agreement with MIMI.
Gaming pays MIMI a fee computed daily and payable monthly at the annual rate of
1.25% of daily net assets. A sub-advisory agreement with Lucky Management Corp.
was terminated on 12/31/94.
The Technology Series has an investment advisory agreement with MIMI.
Technology pays MIMI a fee computed daily and payable monthly at the annual
rate of 1% of daily net assets. Under a sub-advisory agreement between MIMI and
sub-adviser (Negative Beta Associates, Inc.), MIMI is responsible for
compensating the sub-adviser.
The PIA Adjustable Rate Government Securities Series ("Adjustable
Rate Series") has an investment advisory agreement with Pacific. The Adjustable
Rate Series pays Pacific a fee, computed daily and payable monthly, at the
annual rate of 0.35% of the Adjustable Rate Fund's daily net assets.
During the year ended November 30, 1996 the advisers agreed to reimburse the
series for expenses (except distribution fees) in excess of 1.45% of average
net assets (for the Growth & Income, Gold, Growth and Technology Series), 1.00%
of average net assets for the Government Series, 1.90% of average net assets of
the Gaming Series and 0.40% of average net assets of the Adjustable Rate Series.
As a result, the advisers accrued reimbursement to the Growth & Income Series
($33,053), Gold Series ($35,235), Growth Series ($43,620), Technology Series
($41,127), Government Series ($41,485), Gaming Series ($39,312) and Adjustable
Rate Series ($23.999) in addition to foregoing their advisory fees.
The Series has a fund accounting and administrative agreement with American
Data Services, Inc. ("ADS"). ADS receives a fee, computed daily and payable
monthly, at an annual rate of .1% of average daily net assets, subject to a
monthly minimum.
<PAGE>
MONITREND MUTUAL FUND
Notes to Financial Statements - November 30, 1996 (continued)
Note 4. Distribution Agreement and Plan
Syndicated Capital, Inc. serves as the Distributor of each Series's shares.
The Distributor has advised each Series that during the year ended November 30,
1996, it retained no portion of the sales charges on sales of shares of the
Series. The President and sole shareholder of the Distributor is also the
Chairman and majority shareholder of the Adviser, as well as a trustee of the
Series.
The Series has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940. The Plan authorizes the Series
to reimburse the Distributor for marketing expenses incurred in distributing
shares of the Series, including the cost of printing sales material and making
payments to dealers in the Series's shares, in any fiscal year, subject to a
limit of .99% of each Series average net assets in that fiscal year except for
the Government Income Series for which the limit is .10% and the PIA Series
which the limit is .05%. The Distributor will bear such expenses beyond this
limitation. For the period ended November 30, 1996, the following amounts were
paid or accrued for such expenses: Growth & Income ($11,998), Gold ($11,658),
Growth ($4,103), Gaming ($2,576), Technology ($5,154), Government ($796) and
Adjustable Rate ($2,377).
Note 5. Purchases and Sales of Securities
The cost of purchases and sales of investment securities (other than
short-term investments) for the year ended November 30, 1996, were as follows:
<TABLE>
<S> <C> <C>
Purchases Sales
Growth & Income Series ........ $ 1,130,945 $1,305,139
Gold Series ................... 1,348,128 359,423
Government Series.............. 1,138,355 1,034,652
Growth Series ................. 239,768 203,376
Gaming Series.................. 5,103 279,963
Technology Series.............. 574,449 72,858
Adjustable Rate Series......... 25,275,510 766,647
</TABLE>
<PAGE>
MONITREND MUTUAL FUND
Notes to Financial Statements - November 30, 1996 (continued)
Unrealized appreciation and depreciation on investments at November 30, 1996,
based on cost for Federal income taxes, are as follows:
<TABLE>
<S> <C> <C> <C>
Unrealized Unrealized
Appreciation Depreciation Net
Growth & Income Series ..... $ 339,432 $ (11,250) $ 328,182
Gold Series ................ 30,598 (273,857) (243,259)
Government Series .......... 29,073 0 29,073
Growth Series............... 279,999 (14,868) 265,131
Gaming Series............... 2,981 (43,036) (40,055)
Technology Series........... 149,090 (38,645) 110,445
Adjustable Rate Series...... 96,069 (606) 95,463
</TABLE>
Note 6. Subsequent Events
Subsequent to November 30, 1996, the Funds, with the approval of their
shareholders, entered in new investment advisory and sub-advisory agreements as
follows:
<TABLE>
<S> <C> <C>
Fund Investment Adviser Sub-Adviser
PIA Adjustable Rate Fund Pacific -
Gaming & Leisure Fund Murphy Investment -
Management, Inc.
Growth & Income Fund Murphy Investment -
Management, Inc.
Government Income Fund Pacific Camborne Investment Corp.
Gold Fund Orrell and Company, Inc. -
Technology Fund Murphy Investment -
Management, Inc.
Growth Fund Pacific -
</TABLE>
The agreements are substantially the same as the combination of the Funds'
current advisory and sub-advisory agreements.
On December 27, 1996, the Board of Trustees approved a proposal to begin the
process to change the name of the Trust to Monterey Mutual Fund.
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND, GROWTH & INCOME SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C>
For the Year Ended November 30,
1996 1995 1994 1993 1992
-----------------------------------------------
Net asset value, beginning
of period.......................................... $21.42 $16.67 $17.20 $18.53 $19.20
------ ------ ------ ------ ------
Income from investment operations
Net investment income.............................. 0.01 0.02 0.09 0.07 0.16
Net realized and unrealized gain (loss)
on investments..................................... 5.23 4.82 (0.58) (1.22) (0.67)
------ ------ ------ ------ ------
Total from investment operations................... 5.24 4.84 (0.49) (1.15) (0.51)
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income............... (0.02) (0.09) (0.04) (0.18) (0.16)
------ ------ ------ ------ ------
Total distributions................................ (0.02) (0.09) (0.04) (0.18) (0.16)
------ ------ ------ ------ ------
Net asset value, end of period..................... $ 26.64 $ 21.42 $ 16.67 $ 17.20 $ 18.53
------ ------ ------ ------ ------
Total return**..................................... 24.49% 29.19% (2.86%) (6.26%) (2.68%)
====== ===== ===== ====== =====
Ratios/supplemental data
Net assets, end of period
(in 000's)......................................... 1,560 1,377 1,573 2,538 6,149
Ratio of expenses to average net
assets#............................................ 2.26% 2.44% 2.44% 2.44% 2.44%
Ratio of net investment income (loss) to
average net assets................................. 0.04% 0.10% 0.46% 0.21% 0.57%
Portfolio turnover rate............................ 80.93% 151.86% 0.00% 1.59% 4.52%
Average commission rate per share.................. $.13859
<FN>
** Excluding sales charge.
& On a per share basis, includes taxes of $.01 and 0.01% expenses of average
net assets.
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratios of expenses to average net assets would have been 5.11%,
6.08%, 5.46%, 4.39% and 3.46%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND, GOLD SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C>
For the Year Ended November 30,
1996* 1995* 1994 1993 1992
----------------------------------------------------
Net asset value, beginning
of period..................................... $ 5.91 $ 5.87 $ 11.94 $ 9.84 $ 14.49
----- ----- ----- ----- ------
Income from investment operations
Net investment income......................... (0.15) (0.09) (0.15) (0.09) 0.01
Net realized and unrealized gain (loss)
on investments................................ 2.53 0.13 (5.92) 2.20 (4.66)
----- ----- ----- ----- ------
Total from investment operations.............. 2.38 0.04 (6.07) 2.11 (4.65)
----- ----- ----- ----- ------
Less distributions
Dividends from net investment
income........................................ 0.00 0.00 0.00 (0.01) 0.00
----- ----- ----- ----- ------
Total distributions .......................... 0.00 0.00 0.00 (0.01) 0.00
----- ----- ----- ----- ------
Net asset value, end of period ............... $ 8.29 $ 5.91 $ 5.87 $ 11.94 $ 9.84
===== ===== ====== ===== ======
Total return**................................ 40.27% 0.68% (50.84%) 21.47% (32.09%)
Ratios/supplemental data
Net assets, end of period
(in 000's).................................... 1,531 421 1,274 3,147 2,493
Ratio of expenses to average
net assets#................................... 2.37% 2.44% 2.45% 2.43% 2.45%
Ratio of net investment income
(loss) to average net assets.................. (1.72%) (1.57)% (1.26%) (0.84%) 0.06%
Portfolio turnover rate....................... 35.70% 15.57% 229% 969% 626%
Average commission rate per share............ $ .05482
<FN>
** Based on average shares outstanding.
** Excluding sales charge.
# Net of expense reimbursement. If the expense reimbursement had
not been in effect, the ratios of expenses to average net assets would
have been 6.15%, 12.52%, 5.58%, 4.55% and 4.71%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND, GOVERNMENT INCOME SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C>
For the Year Ended November 30,
1996 1995 1994 1993 1992
----------------------------------------------------
Net asset value, beginning
of period ...................................... $ 13.88 $ 12.76 $ 14.16 $ 13.13 $ 13.90
------ ------ ------ ------ ------
Income from investment operations
Net investment income............................. 0.73 0.81 0.87 0.72 0.56
Net realized and unrealized gain (loss)
on investments.................................. (.28) 1.12 (1.39) 1.08 (0.68)
------ ------ ------ ------ ------
Total from investment operations.................. .45 1.93 (0.52) 1.80 (0.12)
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income ............. (0.74) (0.81) (0.88) (0.77) (0.65)
------ ------ ------ ------ ------
Total distributions............................... (0.74) (0.81) (0.88) (0.77) (0.65)
------ ------ ------ ------ ------
Net asset value, end of period ................... $ 13.59 $ 13.88 $ 12.76 $ 14.16 $ 13.13
------ ------ ------ ------ ------
Total return**.................................... 3.42% 15.56% (3.75%) 13.96% (0.93%)
Ratios/supplemental data
Net assets, end of period
(in 000's)...................................... 1,293 947 882 1,280 1,893
Ratio of expenses to average
net assets#..................................... 1.07% 1.10% 1.10% 1.10% 2.17%
Ratio of net investment income
(loss) to average net assets.................... 5.35% 6.04% 6.47% 5.14% 4.32%
Portfolio turnover rate .......................... 129.17% 91.03% 66.36% 118% 159%
Average commission rate per share ................ $ .00
<FN>
** Excluding sales charge.
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratios of expenses to average net assets would have been 5.68%,
5.73%, 5.52%, 3.66% and 3.86%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND, GROWTH SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C> <C>
Year ended Year ended Year ended Year ended April 1
Nov. 30, Nov. 30, Nov. 30, Nov. 30, thru Nov. 30,
1996* 1995* 1994 1993 1992
Net asset value, beginning of period....... $ 15.36 $ 11.12 $ 13.35 $ 13.59 $ 12.00
------- ------ ------ ------ ------
Income from investment operations
Net investment (loss)...................... (0.37) (0.24) (0.52) (0.20) (0.04)
Net realized and unrealized gain (loss)
on investments........................... 4.64 4.48 (1.71) (0.04) 1.63
------- ------ ------ ------ ------
Total from investment operations........... 4.27 4.24 (2.23) (0.24) 1.59
------- ------ ------ ------ ------
Less distributions
Dividends from net investment income....... 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ------ ------
Total distributions........................ 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ------ ------
Net asset value, end of period............. $19.63 $ 15.36 $ 11.12 $ 13.35 $ 13.59
====== ======= ======= ======= ========
Total return** 27.80% 38.13% (16.70%) (1.77%) 13.25%
Ratios/supplemental data
Net assets, end of period (in 000's)...... 715 526 610 1,261 557
Ratio of expenses to average net assets#.. 2.25% 2.44% 2.44% 2.44% 2.44%+
Ratio of net investment income (loss)
to average net assets.................. (2.07%) 2.21% (2.22%) (2.02%) (1.31%)+
Portfolio turnover rate................... 41.22% 23.75% 26.57% 26% 3%
Average commission rate per share......... $ .10548
<FN>
+ Annualized.
* Based on average shares outstanding.
** Excluding sales charge.
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratio of expenses to average net assets would have been 11.73%,
11.44%, 8.52%, 6.44% and 12.12%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND, GAMING AND LEISURE SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C>
Year ended Year ended Year ended Oct.21 thru
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1996* 1995* 1994 1993
-------------------------------------------------------------
Net asset value, beginning of period ...... $ 6.74 $ 6.12 $ 7.99 $ 8.00
----- ----- ----- -----
Income from investment operations
Net investment (loss)...................... (0.17) (0.15) (0.08) (0.01)
Net realized and unrealized gain
on investments............................. 0.62 0.77 (1.79) 0.00
----- ----- ----- -----
Total from investment operations 0.45 0.62 (1.87) (0.01)
----- ----- ----- -----
Less distributions
Dividends from net investment income...... 0.00 0.00 0.00 0.00
----- ----- ----- -----
Total distributions ...................... 0.00 0.00 0.00 0.00
----- ----- ----- -----
Net asset value, end of period............ $ 7.19 $ 6.74 $ 6.12 $ 7.99
===== ===== ===== =====
Total return**............................ 6.67% 10.13% (23.40%) (0.13%)
Ratios/supplemental data
Net assets, end of period (in 000's).... 231 400 824 634
Ratio of expenses to average net assets... 2.65% 2.89% 2.89% 2.70%+
Ratio of net investment income
(loss) to average net assets#............. (2.31%) (2.18%) (1.18%) (2.03%)+
Portfolio turnover rate................... 2.79% 36.89% 26.58% 0%
Average commission rate per share......... $.09613
<FN>
+ Annualized.
* Based on average shares outstanding.
** Excluding sales charge.
# Net of expense reimbursement. If the expense reimbursement had not been
in effect, the ratio of expenses to average net assets would have been
15.28%, 9.96%, 6.40% and 5.19%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND, TECHNOLOGY SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C> <C>
Year ended Year ended Year ended Oct.21 thru
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1996* 1995* 1994 1993
-------------------------------------------------------------
Net asset value, beginning of period....... $ 17.81 $ 14.35 $ 14.82 $ 15.00
------ ------ ------ ------
Income from investment operations
Net investment (loss)...................... (0.40) (0.32) (0.18) (0.01)
Net realized and unrealized (loss)
on investments............................. 4.86 4.19 (0.29) (0.17)
------ ------ ------ ------
Total from investment operations .......... 4.46 3.87 (0.47) (0.18)
------ ------ ------ ------
Less distributions
Dividends from net investment income....... 0.00 0.00 0.00 0.00
Dividends from Capital Gains............... (1.76) (0.41) 0.00 0.00
------ ------ ------ ------
Total distributions........................ (1.76) (0.41) 0.00 0.00
------ ------ ------ ------
Net asset value, end of period............. $ 20.51 $ 17.81 $ 14.35 $ 14.82
====== ====== ====== ======
Total return**............................. 26.32% 26.95% (3.17%) (1.20%)
Ratios/supplemental data
Net assets, end of period (in 000's)....... 886 281 283 38
Ratio of expenses to average net assets#... 2.34% 2.44% 2.44% 1.70%+
Ratio of net investment income (loss) to
average net assets......................... (2.06%) (1.97%) (1.79%) (1.63%)+
Portfolio turnover rate.................... 17.33% 40.77% 29.26% 0%
Average commission rate per share.......... $.07989
<FN>
+ Annualized.
* Based on average shares outstanding.
** Excluding sales charge.
# Net of expense reimbursement. If the expense reimbursement had not been in
effect, the ratio of expenses to average net assets would have been 10.44%,
18.74%, 11.19% and 30.48%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
MONITREND MUTUAL FUND
PIA ADJUSTABLE RATE GOVERNMENT SERIES
Financial Highlights
(For a share outstanding throughout each period)
<S> <C> <C> <C>
Year ended Year ended April 22,1994 thru
Nov. 30, Nov. 30, Nov. 30,
1996 1995 1994
Net asset value, beginning of period............... $ 10.12 $ 9.98 $ 10.00
-------- ------- --------
Income from investment operations
Net investment (loss).............................. 0.56 0.57 0.27
Net realized and unrealized gain
on investments..................................... 0.19 0.14 (0.02)
-------- ------- --------
Total from investment operations................... 0.75 0.71 0.25
-------- ------- --------
Less distributions
Dividends from net investment income.............. (0.56) (0.57) (0.27)
Dividends from Capital Gains...................... (0.10) 0.00 0.00
-------- ------- --------
Total distributions............................... (0.66) (0.57) (0.27)
-------- ------- --------
Net asset value, end of period.................... $10.21 $10.12 $ 9.98
======== ====== =======
Total return** 7.68% 7.50% 2.50%
Ratios/supplemental data
Net assets, end of period (in 000's)............. 20,464 3,405 2,041
Ratio of expenses to
average net assets# ............................. 0.44% 0.46% 0.44%+
Ratio of net investment income (loss) to
average net assets............................... 5.51% 5.71% 4.68%+
Portfolio turnover rate ......................... 21.54% 163.55% 209.94%+
Average commission rate per share................ $.00
<FN>
+ Annualized.
** Excluding sales charge.
# Net of expense reimbursement. If the expense reimbursement had not been
in effect, the ratio of expenses to average net assets would have been 1.19%,
2.01% and 3.46%, respectively.
</FN>
</TABLE>
See notes to financial statements
<PAGE>
INDEPENDENT AUDITOR'S REPORT
The Board of Trustees and Shareholders of
Monitrend Mutual Fund
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments of the Government Income Series, the PIA
Adjustable Rate Government Securities Series, the Growth Series, the Growth &
Income Series, the Gold Series, the Technology Series, and the Gaming & Leisure
Series, series of Monitrend Mutual Fund as of November 30, 1996 and the related
statements of operations and changes in net assets and financial highlights for
the periods indicated in the accompanying financial statements. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1996, by correspondence with the custodian and with brokers as to
securities purchased but not received, or other auditing procedures where
confirmations from brokers were not received. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of the Government Income Series, the PIA Adjustable Rate Government
Securities Series, the Growth Series, the Growth & Income Series, the Gold
Series, the Technology Series and the Gaming & Leisure Series, series of
Monitrend Mutual Fund as of November 30, 1996 and the results of their
operations, the changes in their net assets, and their financial highlights for
the periods indicated, in conformity with generally accepted accounting
principles.
/s/ McGladrey & Pullen, LLP
New York, New York
December 26, 1996, except for
Note 6, as to which
the date is January 29, 1997
<PAGE>
MONITREND MUTUAL FUND
Performance Results - Year Ended November 30, 1996
(All performance measurements reflect the maximum sales load charges for each
period shown.)
PIA ADJUSTABLE RATE SERIES GOVERNMENT INCOME SERIES
Average Annual Total Returns Average Annual Total Returns
1 Year 6.20% 1 Year (1.24%)
*Inception 6.23% *Inception 5.98%
Value on 11/30/96 Value on 11/30/96
PIA Adj.Rate $11,709 PIA Adj.Rate $12,680
Lehman Index $12,339 Lehman Index $13,382
[GRAPH SHOWN HERE] [GRAPH SHOW HERE]
MONITREND MUTUAL FUND
Performance Results - Year Ended November 30, 1996
(All performance measurements reflect the maximum sales load charges for each
period shown.)
GOLD SERIES GROWTH SERIES
Average Annual Total Returns Average Annual Total Returns
1 Year 33.96% 1 Year 22.05%
5 Years (11.18)% *Inception 10.03%
*Inception (8.39)%
Value on 11/30/96 Value on 11/30/96
GOLD $4,615 Growth $15,622
S&P 500 $36,252 S&P 500 $20,643
[GRAPH SHOWN HERE] [GRAPH SHOWN HERE]
The Gold Fund portfolio was The Growth Fund invested in companies
positioned over the past year to that met our requirements for long
take advantage of continued growth term growth and matched the market
in the North American gold mining as measured by the S&P 500.
industry. Strong gains in a number The Fund manager will continue
of the Fund's junior exploration to seek investment opportunities
and development holdings enabled the with long term potential.
Fund to post a gain of 40.27% (33.96%
after maximum sales charge) for the
fiscal year ended 11/30/96 versus a
loss of 0.76% for the XAU (Philadelphia
Stock Exchange gold and silver mining
share index) over the same period. The
Gold Fund's advisor anticipates
maintaining a core position of senior
producers in addition to a mix of
mid-tier and junior producers with
impressive growth profiles. In order
to participate in the global search
for gold that is currently underway
in the mining industry, the fund will
maintain a 5% to 10% portfolio exposure
to promising junior exploration and
development companies.
See notes to financial statements
<PAGE>
The PIA Adjustable Rate Fund was Bond yields drifted higher,
able to withstand the rise in interest as inflationary fears resurfaced
rates in 1996 due to its short in 1996. The Government
duration securities. Mortgage Backed Income Fund sought to
Securities performed extremely well capitalize on torques of
and the Fund was able to identify the yield curve.
opportunities as they arose.
See notes to financial statements
<PAGE>
MONITREND MUTUAL FUND
Performance Results - Year Ended November 30, 1996
(All performance measurements reflect the maximum sales load charges for each
period shown.)
GAMING & LEISURE SERIES TECHNOLOGY SERIES
Average Annual Total Returns Average Annual Total Returns
1 Year 1.88% 1 Year 20.63%
*Inception (4.87)% *Inception 13.17%
Value on 11/30/96 Value on 11/30/96
Gaming $8,561 Technology $14,704
S&P 500 $17,530 S&P 500 $17,530
[GRAPH SHOWN HERE] [GRAPH SHOWN HERE]
This sector of the stock market Electronics and computer technology
performed poorly in 1996. The stocks were weak for the first three
Gaming & Leisure Fund increased quarters of 1996 due to the
its cash position to control the continuing liquidation of excess
risk associated with this sector, personal computer inventory. The
which performed poorly in 1996. December quarter marked a resurgence
Most new gambling initiatives were that we believe will continue into
defeated in the November elections. 1997. Biotechnology stocks fell
Fund shareholders voted to convert to in midyear and remained depressed
a biotechnology fund as a better way until the closing few weeks of 1996.
to achieve the objective of capital The Fund increased its commitment
appreciation. to medical and biotechnology in
anticipation of a strong 1997 based
on several new drug approvals.
See notes to financial statements
<PAGE>
MONITREND MUTUAL FUND
Performance Results - Year Ended November 30, 1996
(All performance measurements reflect the maximum sales load charges for each
period shown.)
GROWTH & INCOME SERIES
Average Annual Total Returns
1 Year 18.88%
5 Years 6.58%
*Inception (4.71)%
Value on 11/30/96
Growth & Income $15,015
S&P 500 $36,252
[GRAPH SHOWN HERE]
The Fund performed well in 1996 as
the stock market continued to rally.
Shareholders are voting on a proposal
to pursue the growth with income
objective by investing in convertible
securities of technology companies.
This should provide participation
in a fast-growing sector of the economy
with higher current income and lower
risk than that associated with common
stocks.
See notes to financial statement
<PAGE>
Monitrend Mutual Funds
Distributed by:
Syndicated Capital, Inc.
1299 Ocean Avenue, Suite 210
Santa Monica, CA 90401
