<PAGE>
- -------------------------------------------------------------------------------
FAMILY OF FUNDS
- -------------------------------------------------------------------------------
Dear Fellow Shareholders: January 16, 1996
1995 was a banner year for the financial markets. Both the Dow Jones Industrial
Average and the S & P 500 Index recorded their best annual gains since 1958. The
NASDAQ Composite turned in its second-best performance in its twenty-four year
existence.
The market gains can be attributed to the Federal Reserve Board orchestrating a
rare "soft landing" that led to modest economic growth, declining interest
rates, and low inflation. This environment propelled corporate profitability to
record levels as companies benefited from improved operating rates, stable
pricing and stronger balance sheets.
In terms of sector performance last year, the best performing groups were
financial, technology and healthcare. The under-performing groups were basic
industry, retail, energy and transportation. In the last few months of the year,
the larger capitalization stocks significantly out performed the smaller
companies as investors shifted out of the hot technology and financial sectors
to the energy-related and drug groups to take advantage of rising oil prices and
a promising pipeline of new drugs.
MARKET OUTLOOK/INVESTMENT STRATEGY
We remain bullish on stocks, although they are unlikely to surpass the
spectacular returns of 1995. In our view, the economy is poised for modest
growth, low inflation and stable interest rates. The Federal Reserve policy is
expected to ease in 1996, with the bulk of the move to occur in the first part
of the year. This type of economic environment should be positive for the
financial markets. Two limiting factors for the stock market are a slowdown in
corporate earnings growth and/or consumer spending levels, which affects about
two-thirds of economic activity. A sharp drop in spending could kick off a
recession, but based on current economic conditions, this appears unlikely in
1996.
As for 1996 being a Presidential election year, history suggests a "no fear"
attitude. Not since 1960 has the stock market been down in an election year.
Most gains have been in the 10-15% range.
The technology sector has been undergoing a significant reappraisal over the
last few weeks. We believe this to be a normal market pullback after this
sector's huge advance. We do not expect the correction to be long lasting and
believe it to be a buying opportunity.
We favor sectors with above average revenue growth potential trading at below
average price-earnings multiples relative to their two year growth rates.
Favored groups would include financials, computer service companies,
telecommunications, food and healthcare. We also look for the small cap issues
to gain the momentum this sector lost in the fourth quarter.
We appreciate your support of the Monetta Family of Funds and look forward to a
profitable 1996.
Sincerely,
ROBERT S. BACARELLA
President and Founder
Page 1
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PERFORMANCE HIGHLIGHTS
<S> <C>
Monetta Fund.......................... 3
Monetta Mid-Cap Equity Fund........... 4
Monetta Large-Cap Equity Fund......... 5
Monetta Balanced Fund................. 6
Monetta Intermediate Bond Fund........ 7
Monetta Government Money Market Fund.. 8
INDEPENDENT AUDITORS REPORT 10
SCHEDULE OF INVESTMENTS
Monetta Fund.......................... 11
Monetta Mid-Cap Equity Fund........... 14
Monetta Large-Cap Equity Fund......... 16
Monetta Balanced Fund................. 18
Monetta Intermediate Bond Fund........ 20
Monetta Government Money Market Fund.. 21
FINANCIAL STATEMENTS
Statements of Assets and Liabilities.. 22
Statements of Operations.............. 24
Statements of Changes in Net Assets... 26
Notes to Financial Statements......... 29
</TABLE>
FOOTNOTE:
Past performance is no guarantee of future results. The principal value and
return on your investment will fluctuate and on redemption may be worth more or
less than your original cost.
References to individual securities are the views of the Adviser at the date of
this report and may change. References are not a recommendation to buy or sell
any security.
Page 2
<PAGE>
MONETTA FUND PERIOD ENDED 12/31/95
Investment Objective: Market
Capitalization Range: Total Net Assets:
Capital Appreciation/Income $50 million - $1 billion $363 million
- -------------------------------------------------------------------------------
PERFORMANCE:
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
Since Incep.
------------
1 Year 5 Years (5/6/86)
------ ------- ------------
<S> <C> <C> <C>
MONETTA FUND 28.0% 14.7% 12.5%
RUSSELL 2500 31.7 21.0 11.9
NASDAQ COMPOSITE* 39.9 23.0 11.0
S &P 500* 37.5 16.6 14.0
</TABLE>
*Source Lipper Analytical Services, Inc.
<TABLE>
<CAPTION>
Measurement Period
(Fiscal Year Covered) MONETTA FUND RUSSELL 2500 S & P NASDAQ
- -------------------- ------------ ------------ ------- -------
<S> <C> <C> <C> <C>
6/86 $10,100 $10,533 $10,590 $10,130
9/86 9,474 9,505 9,849 8,783
12/86 9,815 9,631 10,400 8,765
3/87 11,297 11,753 12,615 10,834
6/87 11,376 11,823 13,246 10,736
9/87 11,012 12,402 14,121 11,262
12/87 9,966 9,180 10,943 8,402
3/88 10,584 10,651 11,567 9,544
6/88 11,928 11,374 12,331 10,079
9/88 12,202 11,281 12,368 9,928
12/88 12,263 11,266 12,751 9,789
3/89 12,643 12,137 13,656 10,464
6/89 13,655 13,058 14,858 11,228
9/89 14,297 14,012 16,448 12,227
12/89 14,125 14,568 16,793 11,787
3/90 14,888 14,163 16,289 11,316
6/90 16,634 14,721 17,299 12,040
9/90 13,425 11,485 14,929 8,994
12/90 15,735 12,401 16,258 9,785
3/91 18,645 15,559 18,632 12,672
6/91 19,205 15,529 18,576 12,558
9/91 21,797 16,864 19,560 13,964
12/91 24,522 18,192 21,204 15,598
3/92 24,679 18,971 20,673 16,144
6/92 23,100 18,109 21,066 15,127
9/92 23,786 18,604 21,719 15,717
12/92 25,862 21,137 22,827 18,294
3/93 24,147 22,138 23,010 18,642
6/93 24,326 22,602 23,102 19,071
9/93 26,219 24,200 23,702 20,673
12/93 25,991 24,632 24,247 20,962
3/94 25,305 24,086 23,324 20,062
6/94 23,933 23,221 23,415 19,050
9/94 25,618 24,886 23,560 20,624
12/94 24,375 24,360 24,555 20,292
3/95 26,725 26,160 26,945 22,053
6/95 28,572 28,623 29,512 25,189
9/95 32,129 31,374 31,870 28,160
12/95 31,204 32,231 33,764 28,392
</TABLE>
The graph above to the right compares the changes in value of a $10,000
investment in the Monetta Fund, the S & P 500 Composite Index, and the NASDAQ
Composite Index and the Russell 2500 Stock Index. The S & P 500 and the Russell
2500 indices are a broad measure representative of the general market, while the
NASDAQ measures performance of stocks in the over-the-counter market. Please
refer to footnote on the botton of page 2.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
<S> <C>
TOP 5 HOLDINGS** % OF NET ASSETS
Genzyme Corp. 3.2%
Glenayre Technologies Inc. 2.6
Clear Channel Communications 2.4
American Oncology Resources 2.3
Reynolds & Reynolds 2.1
----
TOTAL TOP 5 HOLDINGS 12.6%
====
</TABLE>
**excluding short-term investments
- --------------------------------------------------------------------------------
COMMENTARY:
Over the past year the performance of Monetta Fund surged with the overall stock
market advance. The Fund posted a 28% return, its second best annual return
since inception.
Through most of the year, the Fund benefited from its investments in Technology
and Healthcare sectors. The Fund's best performing technology holdings were
Ascend Communications, U.S. Robotics, Altera Corporation and Teradyne Inc. The
healthcare component of the Fund was dominated with those companies that would
benefit from a capitated medical environment. The best performing Fund
securities in this sector were Oxford Health Plans, Physician Sales & Services,
HBO & Co. and Phycor, Inc.
During the year the Fund was very active as securities were sold in accordance
with our sell discipline. Net realized gains totaled approximately $62 million,
which resulted in a three dollar short-term capital gain dividend paid in the
fourth quarter.
As we enter 1996 the economy continues to advance at a moderate pace, however we
are detecting some concerns over consumer spending power. This suggests a more
cautious approach to investing, emphasizing those sectors/companies that will
generate solid earning momentum and accelerating revenue growth. As such, the
Fund is positioned to concentrate on those companies generating strong earning
results such as: Glenayre Technologies, Inc., which manufactures
telecommunication equipment; American Oncology Resources, a leading physician
practice management company focused on oncology; and General Nutrition Company,
which operates a chain of health products stores.
The Fund's above average cash position provides a cushion in the event of a
short-term market sell-off and an opportunity to purchase superior growth
companies at a discount to their growth rates.
Page 3
<PAGE>
<TABLE>
<CAPTION>
MONETTA MID-CAP EQUITY FUND PERIOD ENDED 12/31/95
<S> <C> <C>
Investment Objective: Market
Capitalization Range: Total Net Assets:
Capital Appreciation $1 billion - $5 billion $14.2 million
- -----------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE: AVERAGE ANNUAL TOTAL RETURN
Since Incep.
---------------
1 Year 2 Years (3/1/93)
------ ------- ---------------
MONETTA MID-CAP
EQUITY FUND 24.5% 12.8% 21.2%
S & P 400* 31.0 12.4 13.8
S & P 500* 37.5 18.0 15.4
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period MIDCAP S & P
(Fiscal Year Covered) EQUITY FUND 400 INDEX S & P 500 LEHMAN
- ------------------- ----------- --------- --------- ------
<S> <C> <C> <C> <C>
3/1/93 10,000 10,000 10,000 10,007
3/93 11,670 10,220 10,080 10,018
6/93 11,880 10,455 10,120 10,255
9/93 13,120 10,978 10,383 10,486
12/93 13,540 11,274 10,622 10,504
3/94 13,475 10,793 10,218 10,291
6/94 13,109 10,399 10,258 10,229
9/94 13,887 11,103 10,759 10,313
12/94 13,835 10,817 10,757 10,302
3/95 14,835 11,692 11,804 10,754
6/95 16,536 12,723 12,929 11,292
9/95 17,603 13,965 13,955 11,479
12/95 17,233 14,165 14,785 11,883
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Mid-Cap Equity Fund to the S & P 500 and 400.
The S & P 500 and 400 indices are a broad measure representative of the general
market. Please refer to footnote on the bottom of page 2.
- -------------------------------------------------------------------------------
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
[Pie Chart Appears Here]
TOP 5 HOLDINGS** % OF NET ASSETS
<S> <C>
Paychex 2.8%
American Oncology Resources 2.7
Analog Devices 2.5
Coleman Inc. 2.5
Kohl's Corp. 2.4
------
TOTAL TOP 5 HOLDINGS 12.9%
======
</TABLE>
**excluding short-term investments
- -------------------------------------------------------------------------------
COMMENTARY:
For the one-year period ended December 31, 1995, the Monetta Mid-Cap Equity Fund
posted a 24.5% return. And while past performance is no guarantee of future
results, the Fund continues to do well on a long-term basis, generating an
annualized return, since inception (March 1993) of 21.2%, significantly
outperforming the major stock market indices.
Through much of the year, the Fund was underweighted in the top performing
Technology sector. However, the Fund's weightings in the Industrial and
Financial sectors produced competitive investment returns last year.
The Fund's top performing securities last year were Discreet Logic, Inc.,
Cascade Communication, 3Com Corporation and Analog Devices.
The Fund's financial investments benefited from the declining interest rate
environment as gains were realized on the following issues Money Store,
Beneficial Corporation, and Mercury Finance Corporation.
In addition, the Fund benefited from its investments in a diverse group of
industries. Some of the better performers were Harman International,
Kennametal, Inc. and Value Jet Airlines, Inc.
Looking ahead, the manager believes the Fund's current emphasis in Industrial,
Financial, and Consumer Related sectors should remain intact. Any significant
weakness in the Technology or Healthcare areas would be considered buying
opportunities as the long-term attractiveness of these industries is appealing.
<PAGE>
MONETTA LARGE-CAP EQUITY FUND PERIOD ENDED 12/31/95
Investment Objective: Market
Capitalization Range: Total Net Assets:
Capital Appreciation $5 billion + $1.1 million
- ------------------------------------------------------------------------------
PERFORMANCE:
TOTAL RETURN QUARTER ENDING
Since Incep. (9/1/95) 12/31/95
--------------------- --------------
MONETTA LARGE-CAP EQUITY FUND 5.7% 5.8%
S & P 500* 10.5 6.0
*Source Lipper Analytical Services, Inc.
The S & P 500 is a broad measure representative of the general market. Please
refer to footnote on the bottom of page 2.
- ------------------------------------------------------------------------------
PORTFOLIO COMPOSITION:
[Pie chart appears here showing % of holdings.]
TOP 5 HOLDINGS** % OF NET ASSETS
Amgen, Inc. 4.4%
United Technologies 4.4
General Motors Corp. - Class E 4.4
Norwest Corp. 4.3
Worldcom Inc. 3.9
-----
TOTAL TOP 5 HOLDINGS 21.4%
=====
**excluding short-term investments
- ------------------------------------------------------------------------------
COMMENTARY:
Monetta Large-Cap Equity Fund was launched on September 1, 1995. From its
inception through December 31, 1995, the Fund posted a 5.7% return.
The Fund has benefited from its holdings in the Technology and Basic Industry
sectors. The Fund's best performing issues were Computer Associates, Amgen Inc.,
First Interstate Bank and Pfizer, Inc.
At year-end approximately 90% of the Fund was invested in established growth
companies. Technology continues to be the dominate theme for the Fund,
especially the semiconductor and telecommunication sectors.
At this point, it appears the economy is poised for modest growth. With
inflationary risk receding, the previous degree of restrictive Federal Reserve
monetary policy is no longer needed. This suggests a stable interest rate
environment which should continue to benefit the Financial and Industrial
sectors of the market.
Page 5
<PAGE>
MONETTA BALANCED FUND PERIOD ENDED 12/31/95
Investment Objective: Market Average
Capitalization Range: Maturity: Total Net Assets:
Capital Appreciation/Income $50 million + 4.9 years $410 thousand
- --------------------------------------------------------------------------------
PERFORMANCE:
TOTAL RETURN QUARTER ENDING
Since Incep. (9/1/95) 12/31/95
--------------------- --------
MONETTA BALANCED FUND 6.2% 7.2%
S & P 500* 10.5 6.0
LEHMAN GOVT/CORP BOND INDEX* 7.3 4.7
*Source Lipper Analytical Services, Inc.
The S & P 500 is broad measure representative of the general market, while the
Lehman Government/Corporate Bond Index measures that specific segment of the
bond market. Please refer to footnote on the bottom of page 2.
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION:
[Pie chart appears here showing % of holdings.]
TOP 5 HOLDINGS % OF NET ASSETS
U.S. Treasury Bill
Due 1/25/96 24.3%
U.S. Treasury Notes
Due 10/31/00 9.9
First Tennessee Nat'l 3.0
Intel Corp. 2.8
Greenpoint Financial Corp. 2.6
-----
TOTAL TOP 5 HOLDINGS 42.6%
=====
- --------------------------------------------------------------------------------
COMMENTARY:
Monetta Balanced Fund was launched on September 1, 1995. Since inception through
year-end the Fund appreciated 6.2%.
At year-end approximately 64% of the Fund was invested in common stocks and 36%
in the fixed income markets.
This is a conservatively managed fund as the fixed income sector are invested
primarily in short-term Treasury Bills. The common stock portion of the Fund is
invested in solid growth stocks representing all market capitalization ranges.
Approximately half of the stock portfolio is invested in the larger
capitalization growth companies with the balance split between mid-cap
and small-cap issues.
The Fund will continue to maintain an asset composition in line with its primary
investment objective of capital appreciation and income.
During 1996, the Fund will continue to seek growth companies with the potential
of generating upside earning surprises. The average maturity of the fixed income
portfolio is not expected to change materially, as long as interest rates remain
in a narrow yield range.
Page 6
<PAGE>
- ------------------------------
MONETTA INTERMEDIATE BOND FUND PERIOD ENDED 12/31/95
- ------------------------------
Investment Objective: 30-Day SEC Average
Yield: Maturity: Total Net Assets:
Income 5.95% 5.5 Years $3.6 million
- -------------------------------------------------------------------------------
PERFORMANCE: AVERAGE ANNUAL TOTAL RETURN
Since Incep.
------------
1 Year 2 Years (3/5/93)
------ ------- --------
MONETTA INTERMEDIATE
BOND FUND 14.8% 6.6% 7.6%
LEHMAN GOV/CORP
INTERMEDIATE
BOND INDEX* 15.3 6.4 6.3
*Source Lipper Analytical Services, Inc.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
INTERMEDIATE
BOND S & P
DATE FUND S & P 400 500 LEHMAN
- ---- ------------ --------- ----- ------
<S> <C> <C> <C> <C>
X
3/1/93 10,000 10,000 10,000 10,007
3/93 10,000 10,220 10,080 10,028
6/93 10,399 10,455 10,120 10,255
9/93 10,732 10,978 10,383 10,486
12/93 10,817 11,274 10,622 10,504
3/94 10,585 10,793 10,218 10,291
6/94 10,494 10,399 10,258 10,229
9/94 10,613 11,103 10,759 10,313
12/94 10,705 10,817 10,757 10,302
3/95 11,270 11,692 11,804 10,754
6/95 11,866 12,723 12,929 11,292
9/95 12,046 13,965 13,955 11,479
12/95 12,282 14,165 14,785 11,883
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Intermediate Bond Fund to the Lehman
Government/Corporate Intermediate Bond Index. The Lehman Government/Corporate
Intermediate Bond Index measures that specific segment of the bond market.
Please refer to footnote on the bottom of page 2.
- -------------------------------------------------------------------------------
PORTFOLIO COMPOSITION:
MATURITY PROFILE
1 Year or Less 15.7%
1-3 Years 5.9
[Pie Chart appears here 4-6 Years 31.8
showing % of holdings.] 7-10 Years 45.9
Over 10 Years 0.6
-----
100.0%
=====
- -------------------------------------------------------------------------------
COMMENTARY:
For the one-year period ended December 31, 1995 the Monetta Intermediate Bond
Fund was up 14.8%, slightly below the 15.3% return of the Lehman
Government/Corporate Intermediate Bond Index.
The Fund was managed conservatively during the year as maturities were shortened
during market rallies and assets were reinvested in the U.S. Treasury market.
The average maturity of the Fund during the year was approximately four years.
At year-end over half of the Fund was invested in Treasury Notes and Government
Agency issues with a weighted maturity of 7.1 years. Corporate Bonds,
representing 31% of the Fund, generally outperformed the Treasury securities
with similar maturities as investors worries over a possible recession
diminished.
In the coming months, we do not anticipate any major changes in the Fund's asset
mix or average duration. Based on the assumption of moderate economic growth, we
anticipate a relatively stable interest rate environment during 1996.
Page 7
<PAGE>
MONETTA GOVERNMENT MONEY MARKET FUND PERIOD ENDED 12/31/95
Investment Objective: 7-Day Yield: Average Days Total Net
to Maturity: Assets:
Income and Capital Preservation 5.38% 78 Days $4.4 million
- -------------------------------------------------------------------------------
PERFORMANCE:
AVERAGE ANNUAL TOTAL RETURN
1 Year 2 Years Since Incep. (3/1/93)
------ ------- ---------------------
MONETTA GOVERNMENT MONEY MARKET FUND 5.9%** 5.0%** 4.2%**
LIPPER U.S. GOV'T MONEY MARKET
FUNDS AVG.* 5.3 4.4 3.9
*Source Lipper Analytical Services, Inc.
**Total returns are net of advisory fees waived and voluntary absorption of the
Funds' operating expenses by the Advisor. Please refer to footnote on the
bottom of page 34.
An investment in the Monetta Government Money Market Fund is neither insured or
guaranteed by the U.S. Government. There can be no assurance that the Fund will
be able to maintain a stable $1.00 per share net asset value. Please refer to
footnote on the bottom of page 2.
- -------------------------------------------------------------------------------
PORTFOLIO COMPOSITION:
[Pie chart appears here showing % of holdings.]
ALLOCATION % OF NET ASSETS
U.S. Treasuries 53.4%
Government Agencies 46.3
Total Investments 99.9
Other Assets & Liabilities 0.1
------
TOTAL 100.0%
======
- -------------------------------------------------------------------------------
COMMENTARY:
According to Lipper Analytical Services, Inc., Monetta Government Money Market
Fund ranked second for 1995 in its category of 105 Government Money Market Funds
with a one year return of 5.9%.
Throughout most of the year we maintained a bullish outlook. This was due to
economic growth, low inflation and declining interest rates. As a result, the
Fund average maturity during the year was in excess of 70 days, capitalizing
on declining interest rates.
As of December 31, 1995, the Fund's 7-day yield was 5.38% down from the third
quarter yield of 5.75%. Approximately 53% of the Fund's assets are invested
in U.S. Treasury securities, with the balance in government agencies.
We believe the Federal Reserve Board will be accommodative in 1996 and therefore
we expect a relatively stable interest rate environment next year.
Page 8
<PAGE>
This page intentionally left blank
Page 9
<PAGE>
Independent Auditors' Report
The Board of Directors and Trustees and the Shareholders of
Monetta Fund, Inc. and Monetta Trust:
We have audited the accompanying statements of assets and liabilities of Monetta
Fund, Inc. and Monetta Trust (comprising, respectively, the Mid-Cap Equity Fund,
Large-Cap Equity Fund, Balanced Fund, Intermediate Bond Fund and Government
Money Market Fund), collectively referred to as the "Funds", including the
schedules of investments, as of December 31, 1995, and the related statements of
operations for the period then ended, the statements of changes in net assets
for each of the periods presented in the two-year period then ended, and the
financial highlights for each of the periods presented in the ten-year period
then ended. These financial statements and financial highlights are the
responsibility of the Funds' 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
December 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Monetta Fund, Inc. and each of the respective funds constituting the Monetta
Trust as of December 31, 1995, the results of their operations for the period
then ended, the changes in their net assets for each of the periods presented in
the two-year period then ended, and the financial highlights for each of the
periods presented in the ten-year period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Chicago, Illinois
January 16, 1996
Page 10
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
------------------------
MONETTA FUND
------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMMON STOCKS -76.4%
- ------------------------------------------------------------------
CONSUMER RELATED - 19.5% $70,634
- ------------------------------------------------------------------
BROADCASTING/CABLE TV - 4.2%
*200,000 Clear Channel
Communications $ 8,825
*220,000 Lin Television Corp 6,545
-------
15,370
-------
MISCELLANEOUS SERVICES - 2.8%
*235,000 ATC Environmental 2,762
*1,250,000 Aura Systems Inc. 7,031
-------
9,793
-------
RESTAURANTS & LODGING - 2.5%
*225,000 DAKA International, Inc. 6,187
*116,000 IHOP Corp. 3,016
-------
9,203
-------
RETAIL TRADES - 10.0%
*100,000 CDW Computer Centers 4,050
*300,000 General Nutrition Cos., Inc. 6,900
*100,000 Nautica 4,375
*200,000 Officemax, Inc. 4,475
*150,000 Proffitt's, Inc. 3,938
120,000 St. John's Knits Inc. 6,375
*180,000 Starbucks Corp. 3,780
*100,000 Sunglass Hut International 2,375
-------
36,268
-------
</TABLE>
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
- ------------------------------------------------------------------
FINANCIAL RELATED - 13.3% $48,268
- ------------------------------------------------------------------
FINANCIAL SERVICES - 13.3%
*100,000 American Travelers Corp. 2,812
175,000 First Security Corp. 6,738
150,000 Firstar Corp. 5,944
*200,000 Glendale Federal Bank 3,500
375,000 Money Store 5,859
*210,000 PC Quote Inc. 3,334
*100,000 PMT Services, Inc. 3,025
100,000 Paychex Inc. 4,987
200,000 Reynolds & Reynolds 7,775
*150,000 Verifone Inc. 4,294
-------
48,268
-------
- ------------------------------------------------------------------
MEDICAL RELATED - 20.9% $75,825
- ------------------------------------------------------------------
PHARMACEUTICALS - 5.5%
*185,000 Genzyme Corp. $11,539
*400,003 ICN Pharmaceuticals, Inc. 7,700
*100,000 Quidel Corp. 713
-------
19,952
-------
PHYSICIAN SERVICES - 9.3%
*150,000 American Medical
Response 4,875
*175,000 American Oncology
Resources 8,509
*80,000 Compdent Corp. 3,320
*71,700 IDX Systems Corp. 2,492
*225,000 Occusystems, Inc. 4,500
*150,000 Phamis, Inc. 4,462
</TABLE>
Page 11
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
------------------------
MONETTA FUND (CONTINUED)
------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
*290,000 Sheriden Healthcare 3,516
*50,000 United Dental Care Inc. 2,063
-------
33,737
-------
MEDICAL SUPPLY - 6.1%
*77,000 ICU Medical Inc. 1,309
*225,000 Inamed Corp. 1,997
*185,000 Laser Vision Centers Inc. 2,683
120,000 Mentor Corp. 2,760
*150,000 Patterson Dental Co. 4,050
150,000 Physician Sales & Services 4,275
*150,000 Summit Technology Inc. 5,062
-------
22,136
-------
- ------------------------------------------------------------------
TECHNOLOGY RELATED - 22.7% $82,345
- ------------------------------------------------------------------
SEMICONDUCTORS - 6.3%
*120,000 Altera Corporation $ 5,970
*150,000 Cypress Semiconductor
Corp. 1,912
*160,000 Integrated Circuit Systems 1,980
*155,000 Kulicke & Soffa Industries 3,604
*300,000 S3, Inc. 5,288
*100,000 Sierra Semiconductor Corp. 1,387
*100,000 Ultra Tech. Stepper 2,575
-------
22,716
-------
COMPUTER SOFTWARE - 3.2%
*100,000 Davidson & Associates 2,200
*166,500 Maxis Inc. 6,327
*96,700 Meta Group 2,961
-------
11,488
-------
</TABLE>
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMPUTERS & OFFICE EQUIPMENT - 4.4%
*100,000 FTP Software 2,900
*105,000 Hutchinson Tech 4,436
*150,000 Informix Corp. 4,500
*18,800 Natural Microsystems Corp. 573
*150,000 Read-Rite Corp. 3,488
-------
15,897
-------
TELECOMMUNICATIONS SERVICES & EQUIP. - 8.9%
*100,000 Anicom Inc. 1,063
*70,000 Ascend
Communications, Inc. 5,679
*150,000 Glenayre Technologies, Inc. 9,337
*100,000 Madge Networks 4,475
*70,500 Shiva Corp. 5,129
*145,000 Sync Research 6,561
-------
32,244
-------
TOTAL COMMON STOCKS
(COST $267,667)(a) 277,072
VARIABLE DEMAND NOTES - 0.5%
89,800 American Family - 5.49% 90
1,100,000 Eli Lily - 5.32% 1,100
17,700 General Mills - 5.53% 18
370,200 Sara Lee - 5.47% 370
170,500 Southwestern Bell - 5.72% 170
-------
TOTAL DEMAND NOTES 1,748
-------
</TABLE>
Page 12
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
------------------------
MONETTA FUND (CONTINUED)
------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMMERCIAL PAPER - 21.9%
7,700,000 AT & T Corp. - 5.68%
Due 01/02/96 7,699
10,500,000 Philip Morris - 5.60%
Due 01/03/96 10,497
3,000,000 Philip Morris - 5.60%
Due 01/04/96 2,999
12,000,000 GE Capital - 5.72%
Due 01/05/96 11,992
11,000,000 GE Capital - 5.72%
Due 01/08/96 10,988
10,000,000 Cargil - 5.72%
Due 01/09/96 9,987
5,000,000 AT & T Corp. - 5.72%
Due 01/10/96 4,993
5,000,000 Cargil Inc. - 5.75%
Due 01/11/96 4,992
5,000,000 Duke Power - 5.78%
Due 01/12/96 4,991
10,500,000 Merrill Lynch - 5.70%
Due 01/16/96 10,475
--------
TOTAL COMMERCIAL PAPER 79,613
--------
</TABLE>
<TABLE>
<CAPTION>
Quoted
Market
Value
(In Thousands)
--------------
<S> <C>
TOTAL SHORT-TERM INVESTMENTS 81,361
--------
TOTAL INVESTMENTS - 98.8%
(COST $349,028)(a) 358,433
--------
OTHER ASSETS LESS LIABILITIES - 1.2% 4,287
--------
NET ASSETS - 100% $362,720
========
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $27,729 and aggregate gross unrealized depreciation is $18,324,
resulting in net unrealized appreciation of $9,405 (in thousands).
* Non-income producing security.
Page 13
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
-------------------------------
MONETTA MID-CAP EQUITY FUND
-------------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMMON STOCKS - 91.2%
- ------------------------------------------------------------------
CONSUMER RELATED - 14.7% $2,090
- ------------------------------------------------------------------
RECREATION & ENTERTAINMENT - 3.3%
*10,000 Coleman, Inc. $ 351
4,000 Hasbro Inc. 124
-------
475
-------
FOOD PROCESSING - 5.5%
15,000 Flowers Industries, Inc. 182
*10,000 Smithfield Foods 317
12,000 Whitman Co. 279
-------
778
-------
RETAIL TRADES - 5.9%
*14,000 General Nutrition 322
*6,600 Kohl's Corp. 347
*8,000 Starbucks Corp. 168
-------
837
-------
- ------------------------------------------------------------------
FINANCIAL RELATED - 24.0% $3,411
- ------------------------------------------------------------------
FINANCIAL SERVICES - 24.0%
4,300 AON Corp. $ 214
*15,100 Boston Fed Bancorp Inc. 177
3,500 Comerica, Inc. 140
5,000 Compass Bancorp 165
3,500 Crestar Financial Corp. 207
*15,000 Dime Bancorp Inc. 174
2,700 Fifth Third Bancorp 198
5,000 First Tennessee National 303
</TABLE>
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
12,000 Green Tree Financial Corp. 317
10,000 Greenpoint Financial Corp. 267
12,000 Mercury Finance Co. 159
5,000 PHH Corp. 234
8,000 Paychex Inc. 399
10,000 Roosevelt Financial Group 194
10,000 Southern National Corp. 263
-------
3,411
-------
- ------------------------------------------------------------------
INDUSTRIAL RELATED - 37.8% $5,374
- ------------------------------------------------------------------
INDUSTRIAL/ELECTRONICS PRODUCTS - 21.7%
18,000 Ametek, Inc. 338
14,000 Albany International Corp. -
Class A 254
10,000 Applied Power Inc.
Class A 300
3,000 Consolidated Papers Inc. 168
10,000 Danaher Corp. 318
*10,000 Lydall, Inc. 228
8,000 Millipore Corp. 329
2,625 Molex, Inc. 83
6,000 Sigma Aldrich Corp. 297
14,400 Tri Mas Corp. 272
3,000 Williamette Inds. 169
7,000 York International Corp. 329
-------
3,085
-------
RETAIL MANUFACTURERS/DISTRIBUTION - 8.2%
6,000 Alco Standard Corp. 274
6,000 Avery Dennison Corp 301
8,000 Black & Decker Corp 282
12,000 Newell Co. 310
-------
1,167
-------
</TABLE>
Page 14
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
-------------------------------
MONETTA MID-CAP EQUITY FUND
(CONTINUED)
-------------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
TRANSPORTATION - 1.8%
*18,000 Knight Transportation 252
-------
ENERGY RESOURCES & SERVICES - 1.8%
4,000 Kerr McGee Corp. 254
-------
HOUSING - 2.1%
8,000 Oakwood Homes 307
-------
MINING & MINERAL RELATED - 2.2%
5,000 Vigoro Corp. 309
-------
- ------------------------------------------------------------------
MEDICAL RELATED - 5.1% $728
- ------------------------------------------------------------------
PHARMACEUTICALS - 2.4%
*7,500 Forest Laboratories $ 339
-------
PHYSICIAN SERVICES - 2.7%
*8,000 American Oncology
Resources 389
-------
- ------------------------------------------------------------------
TECHNOLOGY RELATED - 9.6% $1,365
- ------------------------------------------------------------------
SEMICONDUCTORS - 4.3%
*10,000 Analog Devices 354
6,000 Watkins-Johnson Co. 262
-------
616
-------
</TABLE>
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMPUTERS & OFFICE EQUIPMENT - 0.7%
*4,000 Read-Rite Corp. 92
-------
TELECOMMUNICATIONS SERVICES & EQUIP. - 4.6%
*4,500 Bay Networks Inc. $185
*5,000 DSC Communications Corp. 185
*3,000 Tellabs, Inc. 111
*5,000 Worldcom, Inc. 176
-------
657
-------
TOTAL COMMON STOCKS
(COST $12,675)(a) 12,968
-------
VARIABLE DEMAND NOTES - 17.2%
521,800 Eli Lilly - 5.32% 522
468,800 General Mills - 5.58% 469
373,400 Sara Lee - 5.47% 373
585,300 Southwestern Bell - 5.72% 585
502,600 Warner Lambert - 5.46% 503
-------
TOTAL DEMAND NOTES 2,452
-------
TOTAL INVESTMENTS - 108.4%
(COST $15,127)(a) 15,420
-------
OTHER ASSETS LESS LIABILITIES - (8.4%) (1,204)
-------
NET ASSETS - 100% $14,216
=======
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $615 and aggregate gross unrealized depreciation is $322,
resulting in net unrealized appreciation of $293 (in thousands).
*Non-income producing security
Page 15
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
-------------------------------
MONETTA LARGE-CAP EQUITY
FUND
-------------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMMON STOCKS - 89.8%
- ------------------------------------------------------------------
CONSUMER RELATED - 7.7% $83
- ------------------------------------------------------------------
FOOD PROCESSING - 4.3%
400 Philip Morris $36
300 Seagram Co., Ltd. 10
-------
46
-------
RETAIL MANUFACTURERS/DISTRIBUTORS - 3.4%
800 Alco Standard Corp. 37
-------
- ------------------------------------------------------------------
FINANCIAL RELATED - 12.5% $134
- ------------------------------------------------------------------
FINANCIAL SERVICES - 12.5%
400 American Int'l Group 37
300 Federal Nat'l Mortgage 37
100 First Interstate Bank 14
1,400 Norwest Corp. 46
-------
134
-------
- ------------------------------------------------------------------
INDUSTRIAL RELATED - 19.3% $207
- ------------------------------------------------------------------
INDUSTRIAL/ELECTRONICS PRODUCTS - 19.3%
800 Allied Signal, Inc. 38
500 Boeing Co. 39
600 Eastman Kodak 40
800 Rockwell Int'l. 42
500 United Technologies 48
-------
207
-------
</TABLE>
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
- ------------------------------------------------------------------
MEDICAL RELATED - 18.6% $199
- ------------------------------------------------------------------
PHARMACEUTICALS - 14.7%
200 American Home Products $ 19
*800 Amgen, Inc. 48
200 Bristol-Myers Squibb Co. 17
200 Eli Lilly & Co. 11
200 Johnson & Johnson Co. 17
200 Pfizer, Inc. 13
600 Schering Plough 33
-------
158
-------
PHYSICIAN SERVICES - 3.8%
800 Columbia Healthcare 41
-------
- ------------------------------------------------------------------
TECHNOLOGY RELATED - 31.7% $340
- ------------------------------------------------------------------
SEMICONDUCTORS - 4.3%
500 Intel Corp. 28
*700 Teradyne, Inc. 18
-------
46
-------
COMPUTERS & OFFICE EQUIPMENT - 3.3%
200 Hewlett Packard 17
200 Int'l Business Machines 18
-------
35
-------
COMPUTER SOFTWARE - 17.7%
*100 Arbor Software Corp. $ 4
*400 Cisco Systems, Inc. 30
400 Computer Associates 23
900 General Motors Corp. -
Class E 47
</TABLE>
Page 16
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
------------------------
MONETTA LARGE-CAP EQUITY
FUND (CONTINUED)
------------------------
<TABLE>
<CAPTION>
<S> <C>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
*400 Microsoft 35
*100 Network Appliance Inc. 4
*700 Oracle Systems 30
*400 People Soft 17
------
190
------
Telecommunications Services & Equip. - 6.4%
*600 DSC Communications Corp. 22
*100 Sync Research 5
*1,200 Worldcom Inc. 42
------
69
------
Total Common Stocks
(Cost $900)(a) 963
------
Variable Demand Notes - 20.6%
50,400 American Family - 5.49% 50
49,000 Eli Lilly - 5.32% 49
4,500 General Mills - 5.58% 5
25,000 Pitney Bowes - 5.49% 25
45,200 Sara Lee - 5.47% 45
30,900 Southwestern Bell - 5.72% 31
15,400 Warner Lambert - 5.46% 15
------
Total Demand Notes 220
------
Total Investments - 110.4%
(Cost $1,120)(a) 1,183
------
Other Assets Less Liabilities - (10.4)% (111)
------
Net Assets - 100% $1,072
======
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $72 and aggregate gross unrealized depreciation is $9, resulting
in net unrealized appreciation of $63 (in thousands).
* Non-income producing security.
Page 17
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
-----------------------------
MONETTA BALANCED FUND
-----------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
COMMON STOCKS - 64.4%
- ---------------------------------------------------------
Consumer Related - 3.9% $16
- ---------------------------------------------------------
Food Processing - 0.7%
*100 Boston Beer Co. - Class A $ 3
---
Retail Trades - 3.2%
*400 General Nutrition Co. 9
*200 Starbucks Corp. 4
---
13
---
- ---------------------------------------------------------
Financial - 18.5% $76
- ---------------------------------------------------------
Financial Services - 18.5%
100 American Int'l Group $ 9
*400 Bostonfed Bancorp Inc. 5
*600 Dime Bancorp Inc. 7
200 First Tennessee Nat'l 12
300 Green Tree Financial Corp. 8
400 Greenpoint Financial Corp. 11
500 Mercury Finance Co. 6
200 Paychex Inc. 10
400 Roosevelt Fin'l Group Inc. 8
---
76
---
</TABLE>
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
- ---------------------------------------------------------
Industrial - 12.4% $51
- ---------------------------------------------------------
Energy Resources & Services - 1.5%
100 Kerr McGee Corp. 6
---
Housing - 1.0%
100 Oakwood Homes 4
---
Industrial/Electronics Products - 3.6%
100 Allied Signal, Inc. 5
100 United Technologies 10
---
15
---
Retail Manufacturers/Distribution - 6.3%
200 Alco Standard Corp. 9
200 Avery Dennison Corp. 10
200 Black & Decker Corp. 7
---
26
---
- ---------------------------------------------------------
Medical - 10.1% $41
- ---------------------------------------------------------
Pharmaceuticals - 4.9%
*100 Amgen, Inc. 6
100 Johnson & Johnson Co. 9
100 Schering Plough 5
---
20
---
Physician Services - 5.2%
*200 American Oncology
Resources 10
100 Columbia Healthcare 5
*100 Henry Schein Inc. 3
*100 IDX Systems Corp. 3
---
21
---
</TABLE>
Page 18
<PAGE>
Schedule of Investments
December 31, 1995
================================================================================
-----------------------------
MONETTA BALANCED FUND
(CONTINUED)
-----------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
- -----------------------------------------------------------
Technology - 19.5% $80
- -----------------------------------------------------------
Semiconductors - 2.7%
200 Intel Corp. 11
---
Computers & Office Equipment - 4.4%
100 Hewlett Packard $ 9
100 Int'l Business Machines 9
---
18
---
Computer Software - 7.8%
*100 Arbor Software Corp. 5
*100 Corestaff Inc. 4
100 General Motors Corp. -
Class E 5
*100 Meta Group 3
*100 Metatools Inc. 2
*100 Microsoft 9
*100 Network Appliance Inc. 4
---
32
---
Telecommunication Services & Equip. - 4.6%
*100 Bay Networks Inc. 4
*100 Sync Research 4
300 Worldcom Inc. 11
---
19
---
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
(In Thousands) (In Thousands)
- -------------- --------------
<S> <C>
Total Common Stocks
(Cost $243)(a) 264
----
U.S. Treasury Bills - 24.4%
100,000 Due 01/25/96 100
----
U.S. Treasury Notes - 9.8%
40,000 5.75% Due 10/31/00 40
----
Variable Demand Notes - 9.0%
9,900 Eli Lilly - 5.32% 10
5,900 General Mills - 5.58% 6
8,400 Sara Lee - 5.47% 8
12,600 Southwestern Bell - 5.72% 13
----
Total Demand Notes 37
----
Total Investments - 107.6%
(Cost $420)(a) 441
----
Other Assets Less
Liabilities - (7.6%) (31)
----
Net Assets - 100% $410
====
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $26 and aggregate gross unrealized depreciation is $5, resulting
in net unrealized appreciation of $21 (in thousands).
*Non-income producing security.
Page 19
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1995
================================================================================
--------------------------
MONETTA INTERMEDIATE
BOND FUND
--------------------------
<TABLE>
<CAPTION>
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
- --------- --------------
<S> <C>
TREASURY NOTES - 46.5%
100,000 7.00% Due 04/15/99 105
100,000 6.87% Due 07/31/99 105
100,000 7.12% Due 09/30/99 106
200,000 5.50% Due 04/15/00 202
100,000 7.50% Due 11/15/01 110
200,000 6.37% Due 08/15/02 210
200,000 5.75% Due 08/15/03 203
200,000 5.87% Due 02/15/04 204
200,000 6.50% Due 05/15/05 213
200,000 6.50% Due 08/15/05 213
-------
1,671
-------
GOVERNMENT AGENCY - 1.2%
40,000 Sheboygan, WI TIF#6
8.25% Due 03/15/03 43
-------
CORPORATE BONDS - 30.9%
100,000 Delta Airlines, 7.73%
Due 05/14/97 102
50,000 American Airlines, 8.70%
Due 01/15/98 53
50,000 Salomon, Inc., 9.37%
Due 04/15/98 53
100,000 Kroger Co., 9.00%
Due 08/15/99 102
100,000 Chase Manhattan Corp. 8.80%
Due 02/01/00 103
50,000 ADT Operations, 8.25%
Due 08/01/00 53
50,000 American Standard, 9.87%
Due 06/01/01 54
100,000 Harrah's Jazz, 14.25%
Due 11/15/01(b) 29
100,000 Albany Int'l, Corp., 5.25%
Due 03/15/02 90
50,000 Dayton-Hudson, 9.75%
Due 07/01/02 59
100,000 IBM Corp., 7.25%,
Due 11/01/02 107
100,000 RJR Nabisco, Inc., 8.62%,
Due 12/01/02 104
100,000 Webb, Del E., 9.75%,
Due 03/01/03 103
100,000 Salomon, Inc., 6.75%,
Due 01/15/06 98
-------
1,110
-------
FEDERAL HOME BANK LOAN - 2.8%
100,000 6.44% Due 11/28/05 100
-------
MORTGAGE OBLIGATIONS - 0.6%
21,177 GNMA, 8.50%, Due 07/15/21 22
-------
CLOSED-END BOND FUND - 1.0%
4,500 Putnam Master Income Trust 36
-------
DEMAND NOTES - 15.4%
84,700 Eli Lilly - 5.32% 85
132,300 General Mills - 5.58% 132
83,300 Pitney Bowes - 5.49% 83
125,000 Sara Lee - 5.47% 125
125,900 Southwest Bell - 5.72% 126
-----
551
-----
TOTAL INVESTMENTS - 98.4%
(COST: $3,542)(a)
3,533
-------
OTHER ASSETS LESS LIABILITIES - 1.6% 56
--------
NET ASSETS - 100% $3,589
========
</TABLE>
(a) Cost is identical for book and tax purposes, the aggregate gross unrealized
appreciation is $80 and aggregate gross unrealized depreciation is $89,
resulting in net unrealized depreciation of $9 (in thousands).
(b) Harrah's Jazz filed a voluntary bankruptcy petition under Chapter 11 on
November 22. Therefore the Fund ceased accruing interest on that date.
Harrah's Jazz is required to submit a petition for reorganization by March 21,
1996.
Page 20
<PAGE>
SCHEDULE OF INVESTMENTS
December 31, 1995
================================================================================
------------------------
MONETTA GOVERNMENT
MONEY MARKET FUND
------------------------
<TABLE>
<CAPTION>
Shares or Value
Principal (In Thousands)
Amount ------------
- ------------
<S> <C>
GOVERNMENT OBLIGATIONS - 53.4%
U.S. TREASURY BILLS - 53.4%
760,000 Due 01/11/96 $ 759
130,000 Due 03/21/96 129
1,260,000 Due 04/04/96 1,243
225,000 Due 11/14/96 215
-----
2,346
-----
GOVERNMENT AGENCIES - 46.6%
FEDERAL FARM CREDIT DISCOUNT NOTE - 0.9%
40,000 5.55% Due 03/26/96 39
-----
FEDERAL AGRICULTURE MORTGAGE CORP
DISCOUNT NOTE - 3.1%
135,000 5.55% Due 01/03/96 135
-----
FEDERAL HOME LOAN BANK
DISCOUNT NOTES - 17.4%
160,000 5.54% Due 01/24/96 159
240,000 5.50% Due 03/01/96 238
135,000 5.39% Due 05/01/96 133
240,000 5.46% Due 07/26/96 232
----
762
----
FEDERAL NATIONAL MORTGAGE ASSOCIATION
DISCOUNT NOTES - 13.9%
495,000 5.67% Due 01/12/96 494
70,000 5.44% Due 02/20/96 69
50,000 5.52% Due 07/15/96 49
----
612
----
FEDERAL HOME LOAN MORTGAGE
CORP DISCOUNT NOTE - 11.2%
500,000 5.47% Due 03/07/96 495
----
TOTAL INVESTMENTS - 99.9% (a) 4,389
-----
OTHER ASSETS LESS LIABILITIES - 0.1% 4
-----
NET ASSETS - 100% $4,393
======
</TABLE>
(a) Cost is identical for book and tax purposes.
Page 21
<PAGE>
Statements of Assets and Liabilities
December 31, 1995
(In Thousands)
<TABLE>
<CAPTION>
=========================================================================================
Monetta Mid-Cap
Fund Equity Fund
----------------------
<S> <C> <C>
Assets
Investments in common stocks at market value (cost:
$349,028; $15,127; $1,120; $420; $3,542; $4,389)(Note 1) $358,433 $15,420
Cash 0 10
Interest and dividends receivable 27 18
Receivable for securities sold 13,841 247
- -----------------------------------------------------------------------------------------
Total assets 372,301 15,695
- -----------------------------------------------------------------------------------------
Liabilities
Payables:
Custodial bank 165 0
Investment advisory fees (Note 2) 307 12
Investments purchased 9,019 1,464
Accrued expenses 90 3
- -----------------------------------------------------------------------------------------
Total liabilities 9,581 1,479
- -----------------------------------------------------------------------------------------
Net assets $362,720 $14,216
- -----------------------------------------------------------------------------------------
Analysis of net assets
Paid in capital (b) 354,376 14,177
Accumulated undistributed net realized gain (loss) (1,061) (254)
Net unrealized appreciation (depreciation) on investments 9,405 293
- -----------------------------------------------------------------------------------------
Net assets $362,720 $14,216
- -----------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per
share (23,265 shares of capital stock and 1,188; 101.416;
38.66; 350.356; 4,393 shares of beneficial interest
outstanding respectively) $ 15.59 $ 11.96
=========================================================================================
</TABLE>
See accompanying notes to financial statements
(a) Rounds to less than $1,000
(b) Amount for Monetta Fund represents $233 of $0.01 par value and $354,143 of
additional paid in capital, 100 million shares are authorized. Each fund of
Monetta Trust has an unlimited number of no par value shares of beneficial
interest authorized.
Page 22
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================================
Large-Cap Balanced Intermediate Government Money
Fund Fund Bond Fund Market Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in common stocks at market value (cost:
$349,028; $15,127; $1,120; $420; $3,542; $4,389)(Note 1) $1,183 $ 441 $3,533 $4,389
Cash (a) 1 0 6
Interest and dividends receivable 2 (a) 61 (a)
Receivable for securities sold 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets 1,185 442 3,594 4,395
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payables:
Custodial bank 0 0 3 0
Investment advisory fees (Note 2) 1 (a) 1 0
Investments purchased 111 31 0 0
Accrued expenses 1 1 1 2
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 113 32 5 2
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets $1,072 $ 410 $3,589 $4,393
- ---------------------------------------------------------------------------------------------------------------------------------
Analysis of net assets
Paid in capital (b) 1,017 393 3,580 4,393
Accumulated undistributed net realized gain (loss) (8) (4) 18 0
Net unrealized appreciation (depreciation) on investments 63 21 (9) 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets $1,072 $ 410 $3,589 $4,393
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per
share (23,265 shares of capital stock and 1,188; 101.416;
38.66; 350.356; 4,393 shares of beneficial interest
outstanding respectively) $10.57 $10.61 $10.24 $ 1.00
=================================================================================================================================
</TABLE>
Page 23
<PAGE>
Statements of Operations
December 31, 1995
(In Thousands)
================================================================================
<TABLE>
<CAPTION>
Mid-Cap
Monetta Equity
Fund Fund
------------------------------
<S> <C> <C>
Investment income and expenses:
Investment income:
Interest $ 4,041 $ 114
Dividends 1,100 112
Miscellaneous income 476 0
- ------------------------------------------------------------------------------------------
Total investment income 5,617 226
- ------------------------------------------------------------------------------------------
Expenses:
Investment advisory fee (Note 2) 3,648 134
Custodial fees and bank cash management fee 105 12
Transfer and shareholder servicing agent fee 1,217 21
Other 0 (a)
- ------------------------------------------------------------------------------------------
Total expenses 4,970 167
Expenses waived and reimbursed 0 0
- ------------------------------------------------------------------------------------------
Expenses net of waived and reimbursed expenses 4,970 167
- ------------------------------------------------------------------------------------------
Net investment income 647 59
- ------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 903,424 29,873
Cost of securities sold 841,762 27,389
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 61,662 2,484
- ------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments:
Beginning of period (17,513) (23)
End of period 9,405 293
- ------------------------------------------------------------------------------------------
Net change in net unrealized appreciation/depreciation
on investments during the period 26,918 316
- ------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 88,580 2,800
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 89,227 $2,859
==========================================================================================
</TABLE>
See accompanying notes to financial statements
(a) Rounds to less than $1,000
Page 24
<PAGE>
================================================================================
<TABLE>
<CAPTION>
Intermediate Government
Large-Cap Balanced Bond Money Market
Fund Fund Fund Fund
------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income and expenses:
Investment income:
Interest $ 3 $ 2 $ 220 $ 207
Dividends 3 1 3 0
Miscellaneous income 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
Total investment income 6 3 223 207
- ------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fee (Note 2) 3 1 20 13
Custodial fees and bank cash management fee 2 1 3 4
Transfer and shareholder servicing agent fee 1 1 4 4
Other (a) 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
Total expenses 6 3 27 21
Expenses waived and reimbursed 0 0 17 19
- ------------------------------------------------------------------------------------------------------------------------
Expenses net of waived and reimbursed expenses 6 3 10 2
- ------------------------------------------------------------------------------------------------------------------------
Net investment income (a) (a) 213 205
- ------------------------------------------------------------------------------------------------------------------------
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 332 121 2,160 16,792
Cost of securities sold 340 125 2,077 16,792
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (8) (4) 83 0
- ------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments:
Beginning of period 0 0 (165) 0
End of period 63 21 (9) 0
- ------------------------------------------------------------------------------------------------------------------------
Net change in net unrealized appreciation/depreciation
on investments during the period 63 21 156 0
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 55 17 239 0
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 55 $17 $452 $205
========================================================================================================================
</TABLE>
Page 25
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
December 31, 1995
(In Thousands)
=======================================================================================================================
Monetta Mid-Cap Equity
Fund Fund
--------------------- ---------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/95 12/31/94 12/31/95 12/31/94
=======================================================================================================================
<S> <C> <C> <C> <C>
From investment activities:
Operations:
Net investment income $ 647 $ (648) $ 59 $ 64
Net realized gain (loss) on investments 61,662 (3,144) 2,484 488
Net change in net unrealized appreciation
(depreciation) on investments during the period 26,918 (22,651) 316 (298)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 89,227 (26,443) 2,859 254
Distribution from net investment income (647) 0 (59) (64)
Distribution in excess of net investment income (59,578) (1,654) (2,897) (498)
Distribution from net realized gains on securities 0 0 (19) 0
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
investment activities 29,002 (28,097) (116) (308)
=======================================================================================================================
From capital transactions (Note 3):
Proceeds from shares sold 22,913 44,169 2,203 3,474
Net asset value of shares issued through
dividend reinvestment 59,595 1,632 2,930 554
Cost of shares repurchased (113,702) (177,077) (2,538) (1,824)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital transactions (31,194) (131,276) 2,595 2,204
=======================================================================================================================
Total increase (decrease) in net assets (2,192) (159,373) 2,479 1,896
- -----------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 364,912 524,285 11,737 9,841
- -----------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 362,720 $ 364,912 $14,216 $11,737
=======================================================================================================================
</TABLE>
See accompanying notes to financial statements
(a) Rounds to less than $1,000
Page 26
<PAGE>
<TABLE>
<CAPTION>
=======================================================================================================================
Large-Cap Equity Balanced
Fund Fund
--------------------- ---------------------
Period Period
Ended Ended
12/31/95 12/31/95
=======================================================================================================================
<S> <C> <C> <C> <C>
From investment activities:
Operations:
Net investment income $ (a) $ (a)
Net realized gain (loss) on investments (8) (4)
Net change in net unrealized appreciation
(depreciation) on investments during the period 63 21
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 55 17
Distribution from net investment income (a) (a)
Distribution in excess of net investment income 0 (a)
Distribution from net realized gains on securities 0 0
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
investment activities 55 17
=======================================================================================================================
From capital transactions (Note 3):
Proceeds from shares sold 1,019 445
Net asset value of shares issued through
dividend reinvestment (a) (a)
Cost of shares repurchased (2) (52)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital transactions 1,017 393
=======================================================================================================================
Total increase (decrease) in net assets 1,072 410
- -----------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 0 0
- -----------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,072 $410
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================================================
Intermediate Bond Government Money
Fund Market Fund
--------------------- ---------------------
Year Year Year Year
Ended Ended Ended Ended
12/31/95 12/31/94 12/31/95 12/31/94
=======================================================================================================================
<S> <C> <C> <C> <C>
From investment activities:
Operations:
Net investment income $ 213 $ 173 $ 205 $ 92
Net realized gain (loss) on investments 83 (28) 0 0
Net change in net unrealized appreciation
(depreciation) on investments during the period 156 (173) 0 0
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 452 (28) 205 92
Distribution from net investment income (215) (171) (205) (92)
Distribution in excess of net investment income (38) (11) 0 0
Distribution from net realized gains on securities 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
investment activities 199 (210) 0 0
=======================================================================================================================
From capital transactions (Note 3):
Proceeds from shares sold 701 697 4,068 2,559
Net asset value of shares issued through
dividend reinvestment 229 167 196 89
Cost of shares repurchased (550) (603) (3,186) (1,192)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital transactions 380 261 1,078 1,456
=======================================================================================================================
Total increase (decrease) in net assets 579 51 1,078 1,456
- -----------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period 3,010 2,959 3,315 1,859
- -----------------------------------------------------------------------------------------------------------------------
Net assets at end of period $3,589 $3,010 $ 4,393 $ 3,315
=======================================================================================================================
</TABLE>
Page 27
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
Page 28
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES:
Monetta Fund, Inc. ("Monetta Fund") is an open-end diversified management
investment company registered under the Investment Company Act of 1940, as
amended. The primary objective of Monetta Fund is capital appreciation by
investing primarily in equity securities believed to have growth potential. The
Fund generally invests in companies with a market capitalization range of $50
million to $1 billion.
Monetta Trust ("the Trust") is an open-end diversified management investment
company registered under the Investment Company Act of 1940, as amended. The
following funds are series of the Trust:
Mid-Cap Equity Fund. The primary objective of this fund is long-term capital
growth by investing in common stocks believed to have above average growth
potential. The Fund typically invests in companies within a market
capitalization range of $1 billion to $5 billion.
Large-Cap Equity Fund. The primary objective of this fund is to seek long-term
capital growth by investing in common stocks believed to have above average
growth potential. The Fund typically invests in companies with market
capitalization of greater than $5 billion.
Balanced Fund. The objective of this fund is to seek a favorable total rate of
return through capital appreciation and current income consistent with
preservation of capital, derived from investing in a portfolio of equity and
fixed income securities.
Intermediate Bond Fund. The objective of this fund is to seek high current
income consistent with the preservation of capital by investing primarily in
marketable debt securities.
Government Money Market Fund. The primary objective of this fund is to seek
maximum current income consistent with safety of capital and maintenance of
liquidity. The Fund invests in U. S. Government securities maturing in thirteen
months or less from the date of purchase and repurchase agreements for U. S.
Government securities. U. S. Government securities include securities issued or
guaranteed by the U.S. Government or by its agencies or instrumentalities.
Monetta Family of Funds is comprised of Monetta Fund, Inc. and each of the
Trust Series and are collectively referred to as the "Funds". The following is a
summary of significant accounting policies followed by the Funds in the
preparation of their financial statements in accordance with generally accepted
accounting principles:
(a) Securities Valuation
Investments are stated at market value based on the last reported sale price on
national securities exchanges, or the NASDAQ Market, on the last business day of
the period. Listed securities and securities traded on the over-the-counter
markets that did not trade on the last business day are valued at the mean
between the quoted bid and asked prices. Short-term securities, including all
securities held by the Government Money Market Fund, are stated at amortized
cost, which is substantially equivalent to market value.
Page 29
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
(b) Federal Income Taxes
It is each 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 taxable income to its shareholders. Accordingly, no
provision for federal income taxes is required.
The Funds intend to utilize provisions of the federal income tax laws which
allow them to carry a realized capital loss forward for eight years following
the year of the loss and offset such losses against any future realized capital
gains. At December 31, 1995, the Large-Cap Fund had an accumulated capital loss
carry forward for tax purposes of $1,591 which will expire on December 31, 2003.
Net realized losses of the funds may differ for financial statements and tax
purposes because of the deferral of post October 31 losses for tax purposes.
(c) General
Security transactions are accounted for on a trade date basis. Daily realized
gains and losses from security transactions are reported on the first-in, first-
out cost basis. Interest income is recorded daily on the accrual basis and
dividend income on the ex-dividend date.
(d) Distributions of incomes and gains
Distributions to shareholders are recorded by the Funds (except for the
Government Money Market Fund) on the ex-dividend date. The Government Money
Market Fund declares dividends daily and automatically reinvests such dividends
daily. Due to inherent differences in the characterization of short-term capital
gains under generally accepted accounting principles and for federal income tax
purposes, the amount of distributable net investment income for book and federal
income tax purposes may differ. These differences are permanent in nature, and
may result in distributions in excess of book basis net investment income for
certain periods.
2. RELATED PARTIES:
Robert S. Bacarella is an officer and director of the Funds and also an
officer, director and majority shareholder of the investment adviser, Monetta
Financial Services, Inc. "Adviser". For twelve months ended December 31, 1995,
remuneration required to be paid to any director or trustee has been absorbed by
the Adviser.
Each Fund pays an investment advisory fee to the Adviser, based on that
Fund's individual net assets, payable monthly at the annual rate of 1% for
Monetta Fund, Mid-Cap and Large-Cap Equity Funds; 0.65% for Balanced Fund; 0.60%
for Intermediate Bond Fund and 0.35% for the Government Money Market Fund. From
these fees the Adviser pays all the Fund's ordinary operating expenses other
than the advisory fee and charges of the Fund's custodian and transfer agent.
Investment advisory fees waived through December 31, 1995, for the Intermediate
Bond Fund were $17,132 of total fees of $19,834. Investment advisory fees waived
through December 31, 1995 for the Government Money Market Fund were $12,563.
Custodian and transfer agent charges of $6,111 for the period ending December
31, 1995 for the Government Money Market Fund were absorbed by the Adviser.
Additionally, brokerage commissions of $70,235 were paid by the Monetta Fund to
Monetta Brokerage, Inc. during 1995.
Page 30
<PAGE>
Notes to Financial Statements
December 31, 1995
Shares Owned
by the Advisor
==================================
Shares % of Fund
------ ---------
Mid-Cap Fund 7,347 0.6%
Large-Cap Fund 10,004 9.9%
Balanced Fund 19,883 51.3%
Intermediate Bond Fund 69,318 19.8%
Government Money Market Fund 1,062,110 24.2%
3. CAPITAL STOCK AND SHARE UNITS:
There are 100,000,000 shares of $0.01 par value capital stock authorized for
Monetta Fund. There is an unlimited number of no par value shares of beneficial
interest authorized for each series of the Trust.
<TABLE>
<CAPTION>
==========================================================================================================
Monetta Mid-Cap Large-Cap Balanced Intermediate Government
(In Thousands) Fund Equity Fund Equity Fund Fund Bond Fund Money Market
==========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1994 Beginning shares 33,741 785 - - 286 1,859
- ----------------------------------------------------------------------------------------------------------
Shares sold 2,898 276 - - 70 2,560
Shares issued upon
dividend reinvestment 104 46 - - 17 89
Shares redeemed (11,603) (145) - - (60) (1,193)
==========================================================================================================
Net increase (decrease) in
shares outstanding (8,601) 177 - - 27 1,456
==========================================================================================================
1995 Beginning shares 25,140 962 - - 313 3,315
- ----------------------------------------------------------------------------------------------------------
Shares sold 1,400 161 101 44 69 4,068
Shares issued upon
dividend reinvestment 3,779 249 (a) (a) 22 196
Shares redeemed (7,054) (184) (a) (5) (54) (3,186)
==========================================================================================================
Net increase (decrease) in
shares outstanding (1,875) 226 101 39 37 1,078
==========================================================================================================
Ending Shares 23,265 1,188 101 39 350 4,393
==========================================================================================================
</TABLE>
(a) Rounds to less than $1,000
4. PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities for the period
ending December 31, 1995, excluding short-term securities were: Monetta Fund
$797,769,176 and $903,424,497; Mid-Cap Fund $29,441,667 and $29,873,302;
Large-Cap Fund $1,239,640 and $331,924; Balanced Fund $408,253 and $121,069;
and Intermediate Bond Fund $2,190,691 and $2,160,247.
Page 31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
================================================================================
5. FINANCIAL HIGHLIGHTS:
MONETTA FUND
Financial highlights for Monetta Fund for a share of capital stock outstanding
throughout the period is presented below:
<TABLE>
<CAPTION>
1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period $14.515 $15.539 $15.992 $15.731
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .029 (.026) (.028) .006
Net realized and unrealized gain (loss) on investments 4.075 (.938) .105 .855
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations: 18.619 (.964) .077 .861
Less:
Distributions from net investment income (.028) 0 0 (.006)
Distributions in excess of net investment income (3.000) (.060) (.475) (.594)
Distributions from net realized gains on securities 0 0 (.055) 0
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (3.028) (.060) (.530) (.600)
===========================================================================================================================
Net asset value at end of period $15.591 $14.515 $15.539 $15.992
===========================================================================================================================
Total return 28.0% (6.21)% 0.49% 5.49%
Ratio to average net assets
Expenses* 1.36% 1.35% 1.38% 1.45%
Net investment income* 0.18% (0.15)% (0.19)% .16%
Portfolio turnover 272.0% 191.27% 226.85% 126.60%
Net assets (in millions) $ 362.7 $ 364.9 $ 524.3 $ 408.0
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
*If certain expenses had not been assumed by the investment advisor in 1989,
the ratios of expenses and net investment income to average net assets would
have been 1.83% and 1.92%, respectively.
The per share ratios are calculated using the weighted average number of shares
outstanding during the period.
Page 32
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
================================================================================
<TABLE>
<CAPTION>
5/6/86
Through
1991 1990 1989 1988 1987 12/31/86
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $10.963 $10.441 $ 9.933 $ 9.649 $ 9.670 $10.000
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .081 .103 .219 .106 .113 .115
Net realized and unrealized gain (loss) on investments 6.037 1.106 1.274 2.158 .016 (.335)
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations: 6.118 1.209 1.493 2.264 .129 (.220)
Less:
Distributions from net investment income (.081) (.103) (.219) (.106) (.150) (.110)
Distributions in excess of net investment income (1.208) (.584) (.766) (1.874) 0 0
Distributions from net realized gains on securities (.061) 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (1.350) (.687) (.985) (1.980) (.150) (.110)
===========================================================================================================================
Net asset value at end of period $15.731 $10.963 $10.441 $ 9.933 $ 9.649 $ 9.670
===========================================================================================================================
Total return 55.90% 11.37% 15.20% 23.07% 1.54% (2.20)%
Ratio to average net assets
Expenses* 1.42% 1.50% 1.57% 1.50% 2.31% 1.27%
Net investment income* .93% 1.09% 2.18% .96% 1.33% 2.45%
Portfolio turnover 153.80% 206.51% 258.42% 170.43% 333.47% 80.02%
Net assets (in millions) $ 57.1 $ 6.1 $ 3.5 $ 2.6 $ 2.1 $ 1.9
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
- --------------------------------------------------------------------------------
Financial highlights for each Fund of the Trust for a share outstanding
throughout the period is presented below:
<TABLE>
<CAPTION>
Mid-Cap Large-Cap
Equity Equity
Fund Fund
---------------------------- ---------
3/1/93 9/1/95
Through Through
12/31/95 12/31/94 12/31/93 12/31/95
----------------------------------------
<S> <C> <C> <C> <C>
Net asset value at
beginning of period* $12.199 $12.537 $10.000 $10.000
- --------------------------------------------------------------------------------
Net investment income 0.059 0.071 0.006 0.005
Net realized and unrealized
gain (loss) on investments 2.874 0.193 3.531 0.570
- -------------------------------------------------------------------------------
Total from investment operations 2.933 0.264 3.537 0.575
Less:
Distributions from net investment
income (0.050) (0.069) (0.006) (0.004)
Distributions in excess of net
investment income (2.990) (0.533) (0.994) 0
Distributions from net realized
gains on securities (0.130) 0 0 0
- --------------------------------------------------------------------------------
Total distributions (3.170) (0.602) (1.000) (0.004)
================================================================================
Net asset value at end of period $11.962 $12.199 $12.537 10.571
================================================================================
Total return* 24.54% 2.17% 35.40% 5.74%
Ratios to average net assets:
Expenses** 1.25% 1.30% 1.12% 0.69%
Net investment income** 0.44% 0.57% 0.07% 0.05%
Portfolio turnover 254.35% 209.97% 128.12% 38.20%
Net assets (in thousands) $14,216 $11,736 $ 9,841 $ 1,072
================================================================================
</TABLE>
*Ratios and total return for the year of inception are calculated from the date
of inception to the end of the period.
**If certain investment advisory fees and charges of the Trust's custodian and
transfer agent had not been assumed by the investment advisor, the ratios of
expenses and net income to average net assets would be as follows: for the
Intermediate Bond Fund, expenses would have been 0.75%, 0.88% and 0.75% for
1995, 1994 and 1993 respectively. For the Government Money Market Fund,
expenses would have been 0.59%, 0.66% and 0.69%, for 1995, 1994 and 1993
respectively. For the Intermediate Bond Fund, net investment income would have
been 5.46%, 5.34% and 3.66% for 1994 and 1993 respectively. For the Government
Money Market Fund, the investment income would have been 5.17%, 3.39% and 1.66%
for 1995, 1994 and 1993 respectively.
The per share ratios are calculated using the weighted average number of shares
outstanding during the period.
Page 34
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Intermediate Government
Balanced Bond Money Market
Fund Fund Fund
-------- ----------------------------- -----------------------------
9/1/95 3/5/93 3/1/93
Through Through Through
12/31/95 12/31/95 12/31/94 12/31/93 12/31/95 12/31/94 12/31/93
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period* $10.000 $9.624 $10.345 $10.000 $1.000 $1.000 $1.000
- ----------------------------------------------------------------------------------------------------------------
Net investment income 0.009 0.655 0.589 0.357 0.059 0.040 0.023
Net realized and unrealized
gain (loss) on investments 0.602 0.740 (0.690) 0.447 0 0 0
- ----------------------------------------------------------------------------------------------------------------
Total from investment operations 0.611 1.395 (0.101) 0.804 0.059 0.040 0.023
Less:
Distributions from net investment
income (0.004) (0.655) (0.580) (0.357) (0.059) (0.040) (0.023)
Distributions in excess of net
investment income (0.002) (0.120) (0.040) (0.102) 0 0 0
Distributions from net realized
gains on securities 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------
Total distributions (0.006) (0.775) (0.620) (0.459) (0.059) (0.040) (0.023)
================================================================================================================
Net asset value at end of period 10.605 10.244 $9.624 $10.345 $1.000 $1.000 $1.000
================================================================================================================
Total return* 6.16% 14.84% (1.04)% 8.17% 5.87% 4.04% 2.21%
Ratios to average net assets:
Expenses** 0.91% 0.27% 0.28% 0.28% 0.07% 0.0% 0.03%
Net investment income** 0.08% 5.94% 5.94% 4.13% 5.69% 4.04% 2.32%
Portfolio turnover 54.78% 75.07% 94.48% 32.26% N/A N/A N/A
Net assets (in thousands) $410 $3,589 $3,010 $2,959 $4,393 $3,315 $1,859
================================================================================================================
</TABLE>
Page 35
<PAGE>
================================================================================
Annual Report
December 31, 1995
MONETTA FAMILY OF FUNDS
Monetta Fund, Inc.
Monetta Mid-Cap Equity Fund
Monetta Large-Cap Equity Fund
Monetta Balanced Fund
Monetta Intermediate Bond Fund
Monetta Government Money
Market Fund
Monetta Funds
1776-A South Naperville Road
Suite 207
Wheaton, Illinois 60187
1-800-MONETTA
================================================================================
