MONETTA FAMILY OF FUNDS
Dear Fellow Shareholders January 19, 1998
With this report, I am pleased to present the Monetta Family of Funds Annual
Report.
1997, by almost any measure, was a terrific year for the equity markets. The
investment climate was ideal as corporate earnings growth remained robust,
inflation reached a 23-year low, and the Federal Reserve maintained a stable
interest rate environment.
Small-cap stocks ended another year with great absolute returns (20%+) but well
behind the returns of the mid-cap and large-cap sectors which increased 30%+.
The best performing industry sectors last year were financial services,
consumer staples, utilities, and auto/transportation. In general, both
technology and healthcare sectors suffered in 1997, primarily due to lower
earnings expectations.
Overall, we were very pleased with our Funds' performance last year. The
bottom-up stock selection process, coupled with the team investment approach,
was the cornerstone of our strong performance record from last year. I am very
proud of our experienced, knowledgeable, and dedicated portfolio management
team that desires nothing but the best returns for our shareholders.
The major fund highlights from last year include:
The Monetta Small-Cap Equity Fund posted a superior 47.2% investment
return since inception
(February 1, 1997).
The Monetta Fund's 26.2% return was an impressive return, well ahead of
its benchmark indices, the Russell 2000 and the NASDAQ Composite, which
had returns of 22.4% and 21.6%, respectively.
The Monetta Mid-Cap Equity Fund appreciated 29.1%, a competitive return
versus its benchmark index, the S&P 400, which had a return of 32.3%.
The Monetta Large-Cap Equity Fund also posted a very solid return of
26.6%, exceeding the average growth fund return of 25.3%, as tracked by
Lipper Analytical Services.
The conservatively-managed Monetta Balanced Fund appreciated 21.2%
versus the average return of 19.0% for the Balanced Funds category, as
reported by Lipper Analytical Services.
The Monetta Intermediate Bond Fund's return of 8.9% exceeded its
benchmark index, the Lehman Govt./Corp. Intermediate Bond Index, which
returned 7.9%, seeking shorter duration, less volatility, and higher
income yield than its peers.
The risk-averse Monetta Government Money Market Fund's return of 5.15%
continues to make it a strong performing fund in the U.S. Government
Money Market Fund category, as reported by Lipper Analytical Services.
We also launched Monetta's internet site under http://www.monetta.com. The
site provides basic information about the firm with quarterly updates. In the
near future, we will be adding a daily NAV update section and interactive
programs to help shareholders with asset diversification decisions.
We thank you for the trust you have placed in us, and we look forward to
working even harder to continue to deliver results that you, as shareholders,
deserve and expect.
Best personal regards,
Robert S. Bacarella
President and Founder
<TABLE>
<CAPTION>
Table of Contents
Performance Highlights
<S> <C>
Monetta Fund 3
Monetta Small-Cap Equity Fund 4
Monetta Mid-Cap Equity Fund 5
Monetta Large-Cap Equity Fund 6
Monetta Balance Fund 7
Monetta Intermediate Bond Fund 8
Monetta Government Money Market Fund 9
Independent Auditors Report 10
Schedule of Investments
Monetta Fund 11
Monetta Small-Cap Equity Fund 14
Monetta Mid-Cap Equity Fund 16
Monetta Large-Cap Equity Fund 18
Monetta Balance Fund 20
Monetta Intermediate Bond Fund 22
Monetta Government Money Market Fund 23
Financial Statements
Statements of Assets & Liabilities 24
Statement of Operations 26
Statement of Changes in Net Assets 28
Notes to Financial Statements 30
</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. Historically, small company stocks have been
more volatile than large company stocks, U.S. Government Bonds, and Treasury
Bills. An investment in the Government Money Market Fund is neither insured nor
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.
References to individual securities are the views of the Advisor at the date of
this report and may change. References are not a recommendation to buy or sell
any security. Fund holdings are subject to change.
Since indices are unmanaged, it is not possible to invest in them.
Sources for performance data include Lipper Analytical Services, Inc., and
Frank Russell Company.
Page 2
MONETTA FUND PERIOD ENDED 12/31/97
Monetta Fund:
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation/Income $50 million - $1 billion $163 million
<TABLE>
<CAPTION>
Performance:
1 Year 5 Years 10 Years
<S> <C> <C> <C>
Monetta Fund 26.2% 9.1% 14.9%
Russell 2000* 22.4% 16.4% 15.8%
NASDAQ Composite* 21.6% 18.3% 16.9%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Monetta Russell Nasdq
(Fiscal Period Covered) Equity Fund 2000
<S> <C> <C> <C>
3/88 10,620 11,907 11,603
6/88 11,963 12,692 12,390
9/88 12,242 12,573 11,732
12/88 12,305 12,489 11,541
3/89 12,689 13,452 12,308
6/89 13,702 14,308 13,173
9/89 14,352 15,274 14,311
12/89 14,178 14,518 13,763
3/90 14,938 14,197 13,179
6/90 16,705 14,745 13,988
9/90 13,483 11,127 10,424
12/90 15,790 11,686 11,311
3/91 18,714 15,161 14,592
6/91 19,275 14,926 14,400
9/91 21,883 16,143 15,942
12/91 24,614 17,068 17,742
3/92 24,772 18,348 18,269
6/92 23,192 17,096 17,054
9/92 23,880 17,586 17,649
12/92 25,965 20,210 20,484
3/93 24,244 21,074 20,883
6/93 24,423 21,534 21,301
9/93 26,323 23,417 23,081
12/93 26,094 24,031 23,506
3/94 25,405 23,393 22,498
6/94 24,028 22,482 21,363
9/94 25,720 24,043 23,127
12/94 24,472 23,594 22,755
3/95 26,832 24,681 24,730
6/95 28,686 26,995 28,246
9/95 32,260 29,661 31,577
12/95 31,331 30,304 31,837
3/96 31,813 31,850 33,327
6/96 32,799 33,443 35,857
9/96 32,740 33,556 37,126
12/96 31,837 35,302 39,068
3/97 29,525 33,476 36,970
6/97 35,596 38,903 46,639
9/97 42,711 44,693 51,010
12/97 40,174 43,195 47,521
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Fund, the Russell 2000 Stock Index, and the NASDAQ
Composite Index with dividend and capital gains reinvested. The Russell 2000
Stock Index is a broad measure representative of the general market, while the
NASDAQ measures performance of stocks in the over-the-counter market. Since
the S & P 500 and the Russell 2500 are not appropriate indices, they are no
longer reflected on the above graph. Had they been reflected, the value of a
$10,000 investment at the end of 10 years per the S & P 500 and the Russell
2500 indices would be $51,223 and $47,805, respectively. Please refer to
footnote at bottom of Page 2.
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Jones Medical Industries, Inc. 1.6%
Transcrypt Int'l, Inc. 1.5%
Newpark Resources, Inc. 1.5%
AFC Cable Systems, Inc. 1.4%
ScanSource, Inc. 1.4%
Total Top 5 Holding 7.4%
</TABLE>
Commentary:
The Monetta Fund posted an impressive return of 26.2% for the year ended
December 31, 1997. This compares favorably with the 22.4% return of the
Russell 2000 index during this time period.
Throughout 1997, we have communicated to you in our quarterly reports that we
have focused on early- stage growth companies that offer the best opportunity
for price appreciation, without the requisite risk often associated with late-
stage growth companies. We felt strongly that by avoiding companies that are
nearing the apex of their growth, which are often over-owned institutionally,
we could demonstrate strong performance with reduced volatility. It is with
great pleasure that we report that the implementation of this strategy was
successful in 1997. While the major indices reported strong gains in 1997, it
was a very volatile market which we used to our advantage by dollar-averaging
into our better securities.
The Fund posted very strong returns in historically volatile groups such as
technology and healthcare through a disciplined investment approach. We had a
number of holdings, such as Medquist, Inc., Transcrypt Int'l, Inc., and
Smallworldwide PLC, that posted returns of over 75%. While we let our strong
performers appreciate as company fundamentals improved, we were quick to sell
stocks which reported deteriorating fundamentals or reached our predetermined
price targets.
Entering 1998, we plan to continue to focus on adding value to the investment
process through intensive due diligence on prospective investments and careful
monitoring of existing stocks. Our greatest strength is being able to identify
the best and brightest companies early in their growth phase, and we will
continue to exploit this strength going forward.
Page 3
MONETTA SMALL-CAP EQUITY FUND PERIOD ENDED 12/31/97
Monetta Small-Cap Equity Fund
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation under $1 billion $2.5 million
<TABLE>
<CAPTION>
Performance: Fourth Since Inception
Quarter 2/1/97
<S> <C> <C>
Monetta Small-Cap Equity Fund (2.5)% 47.2%
Russell 2000* (3.4)% 20.0%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performane Graph Appears Here]
<TABLE>
<CAPTION>
Small-Cap Russell
Month Fund 2000
<S> <C> <C>
1/31/97 10,000 10,000
2/28/97 10,150 9,758
3/31/97 9,490 9,297
4/30/97 9,260 9,323
5/31/97 10,840 10,360
6/30/97 11,820 10,804
7/31/97 12,900 11,307
8/31/97 13,710 11,566
9/30/97 15,090 12,412
10/31/97 14,950 11,867
11/30/97 14,791 11,790
12/31/97 14,717 11,996
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Small-Cap Equity Fund and the Russell 2000 Stock
Index with dividend and capital gains reinvested.The Russell 2000 index is a
broad measure representative of the general market. Please refer to footnote at
bottom of Page 2.
PORTFOLIO COMPOSITION
<TABLE>
<CAPTION>
Top 5 Equity Holdings % of Net Assets
<S> <C>
CHS Electronics, Inc. 3.4%
QuadraMed Corp. 3.3%
Jones Medical Industries, Inc. 3.0%
ANADIGICS, Inc. 3.0%
JPM Co. 3.0%
Total Top 5 Holdings 15.7%
</TABLE>
Commentary:
The Monetta Small-Cap Fund continues to perform exceptionally well, posting a
return of 47.2% from inception on February 1, 1997, through December 31, 1997.
This compares exceptionally well versus the Russell 2000 index, which returned
20.0% during the same period.
In 1997, the Fund recorded strong gains across all industry sectors. We
experienced an extraordinary breadth of strong individual stock performance
which drove the superior returns we enjoyed in 1997. The top performing
securities were: QuadraMed Corp., which provides decision-support software for
healthcare providers; Medquist, Inc., a provider of medical transcription
services; Transcrypt Int'l., Inc., provides information security products to
the cellular market; and Remec, Inc., a manufacturer of telecommunications
equipment. Generally, the Fund was fully invested throughout the year, ending
the year with approximately 97% invested in common stocks.
As small-cap stocks badly lagged the major market indices in 1997, we are
especially pleased to report a 47.2% return for the Fund. While small-cap
stocks recovered in mid-1997, they again lagged the major market indices in the
fourth quarter of 1997. Industry experts are currently stating that the
substantially higher earnings growth rates associated with small-cap stocks,
coupled with much lower relative valuations versus large-cap stocks, portends
well for small-cap funds as we enter 1998. The Monetta Small-Cap Fund continues
to be well positioned to benefit from a narrowing of this valuation discrepancy
in 1998.
Page 4
MONETTA MID-CAP EQUITY FUND PERIOD ENDED 12/31/97
Monetta Mid-Cap Equity Fund:
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation $1 billion - $5 billion $21.9 million
<TABLE>
<CAPTION>
Performance:
AVERAGE ANNUAL TOTAL RETURN
Since Inception
1 Year 3 Years 3/1/93
<S> <C> <C> <C>
Monetta Mid-Cap Equity Fund 29.1% 26.8% 23.4%
S & P 400* 32.3% 27.3% 18.5%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Mearsurement Period Mid-Cap S & P 400
(Fiscal Year Covered)
<S> <C> <C>
3/1/93 10,000 10,000
3/93 11,670 10,220
6/93 11,880 10,455
9/93 13,120 10,978
12/93 13,540 11,274
3/94 13,475 10,793
6/94 13,109 10,399
9/94 13,887 11,103
12/94 13,835 10,817
3/95 14,835 11,692
6/95 16,536 12,723
9/95 17,603 13,965
12/95 17,233 14,165
3/96 18,717 15,037
6/96 19,106 15,470
9/96 19,855 15,920
12/96 21,402 16,885
3/97 21,314 16,634
6/97 24,277 19,085
9/97 27,761 22,145
12/97 27,639 22,329
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Mid-Cap Equity Fund to the S & P 400. The S & P 400
index is a broad measure representative of the general market. Since the S & P
500 is not an appropriate index, it is no longer reflected on the above graph.
Had it been reflected, the value of a $10,000 investment since inception per
the S & P 500 index would be $24,240. Please refer to footnote at bottom of
Page 2.
PORTFOLIO COMPOSITION TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Allied Waste Industries, Inc. 3.2%
USA Waste Services, Inc. 3.0%
Sante Fe Int'l Corp. 2.8%
Newpark Resources, Inc. 2.4%
Watson Pharmaceuticlas 2.4%
Total Top 5 Holdings 13.8%
</TABLE>
Commentary:
The 29.1% 1997 return of the Monetta Mid-Cap Fund represented another very
strong performance year. The Fund ranked in the top 17th percentile of all mid-
cap funds tracked by Lipper Analytical Services, while moderately lagging the
return of the S&P 400 index, which rose 32.3%. Since inception (March 1, 1993),
the Fund has generated an average annual investment return of 23.4%.
The average one-year return for the Mid-Cap Funds category, as reported by
Lipper Analytical Services, was 19.6%. This wide divergence between the typical
mid-cap fund and the S&P 400 index is largely explained by sector weightings.
Financial stocks comprise a significant portion of the index, and returns for
this sector soared in 1997 due to declining interest rates and takeover
activity. At the same time, technology and other traditional growth sectors
struggled. Many mid-cap funds were underweighted in interest-sensitive issues
and overweighted in growth issues.
The Monetta Mid-Cap Fund benefited from the shift in investor sentiment away
from the large-cap issues to the mid-cap sector. The Fund's performance was
enhanced by its sector weightings in the consumer, industrial, and financial
areas. Also, by steering clear of over-owned, fully-valued technology stocks
(especially early in the year), the Fund gained substantial ground on the
market indices and is now positioned to selectively add to this depressed
sector.
We find no shortage of attractive mid-cap ideas that fit our criteria of strong
and improving earnings growth at price levels that leave room for ample
appreciation. We continue to manage risk via careful analysis and stock
selection, and seek to produce favorable returns while holding volatility below
that of the market.
Page 5
Monetta Large-Cap Equity Fund:
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation $5 billion + $4.3 million
<TABLE>
<CAPTION>
Performance: Since Inception
1 Year 2 Year 9/1/95
<S> <C> <C> <C>
Monetta Large-Cap Equity Fund 26.6% 27.4% 26.0%
S & P 500* 33.4% 28.0% 29.0%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Mearsurement Perod Large-Cap S & P 500
(Fiscal Year End)
<S> <C> <C>
9/95 10,000 10,482
12/95 10,574 11,105
3/96 11,344 11,701
6/96 11,923 12,225
9/96 12,864 12,603
12/96 13,555 13,653
3/97 13,842 14,020
6/97 15,621 16,465
9/97 17,333 17,699
12/97 17,167 18,207
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Large-Cap Equity Fund to the S & P 500. The S & P 500
Composite index is a broad measure representative of the general market. Please
refer to footnote at bottom of Page 2.
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Eaton Corp. 3.1%
Aluminum Company of America 3.0%
AMF Bowling, Inc. 2.9%
Sante Fe Int'l Corp. 2.9%
Hertz Corp. 2.8%
Total Top 5 Holdings 14.7%
</TABLE>
Commentary:
The Monetta Large-Cap Fund produced another strong total return of 26.6% in
1997. The performance of the Fund exceeded the 25.3% return of the average
growth fund tracked by Lipper Analytical Services, but trailed the 33.4% return
of its primary benchmark, the S&P 500 index.
The S&P 500 produced stellar returns during 1997 as large capitalization stocks
once again outperformed small. However, even among large stocks, the gains were
not evenly spread. A handful of big stocks continued to produce the bulk of the
gains as investors sought the "safety" of consistent, predictable earnings
growth. This trend was further augmented by money flowing into the U.S. from
troubled Southeast Asia and looking for "name brands" and a liquid haven.
Our strategy does not involve blindly holding these "nifty fifty" market
leaders. We think many of these "safe" stocks are highly susceptible to any
market or company-specific hiccup due to severe overvaluation and potential
slowing of earnings growth rates.
We continue to manage risk by utilizing research-intensive, bottom-up stock
picking to identify rapidly-growing companies while also insisting upon
attractive valuations. Our knowledge of what a company is worth enables strong
returns to be produced while avoiding the volatility associated with trend
chasing. Our strong absolute returns and better-than-average performance in the
growth fund category validate this strategy. Financial services, consumer
cyclicals, and oil service were particularly strong industry groups for us in
1997. Top performing stocks included Halliburton, Equitable Cos., Household
Int'l., EMC Corp., Home Depot, CVS Corp., and Schlumberger.
Page 6
MONETTA BALANCED FUND PERIOD ENDED 12/31/97
Monetta Balance Fund:
Investment Objective: Market Capitalization Range:
Capital Appreciation/Income $50 million +
Average Maturity: Total Net Assets:
6.8 Years $12.1 million
<TABLE>
<CAPTION>
Performance:
AVERAGE ANNUAL TOTAL RETURN
Since Inception
1 Year 2 Year 9/1/95
<S> <C> <C> <C>
Monetta Balanced Fund 21.2% 23.5% 23.0%
Benchmark* 25.1% 20.4% 21.6%
</TABLE>
*Source Lipper Analytical Services, Inc
[Performane Graph Appears Here]
<TABLE>
<CAPTION>
Monetta
Measurement Period Balance
(Fiscal Year End) Fund Benchmark
<S> <C> <C>
9/95 10,000 10,313
12/95 10,616 10,919
3/96 11,131 11,220
6/96 11,913 11,577
9/96 12,547 11,887
12/96 13,369 12,682
3/97 13,358 12,888
6/97 14,642 14,615
9/97 16,431 15,554
12/97 16,205 16,014
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Balanced Fund to the Benchmark with dividends and
capital gains reinvested.
*The Benchmark is a composite blend of two indices, 65% S & P 500 (stock
index), and 35% Lehman Govt/Corp Bond (bond index). It is a hypothetical
benchmark.
Please refer to footnote at bottom of Page 2.
PORTFOLIO COMPOSITION TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Imperial Credit Com. Mrtg. Invt. 1.2%
USAWaste Serv. Inc. 1.2%
Eaton Corp. 1.2%
Aluminum Company of America 1.2%
Allied Waste Industries Inc. 1.2%
Total Top 5 Holdings 6.0%
</TABLE>
Commentary:
The Monetta Balanced Fund added to its stellar past record with a 21.2% return
in 1997. This placed it in the top 27th percentile of all balanced funds for
the year, as rated by Lipper Analytical Services. For the two years ending
December 31, 1997, the Fund's annual return of 23.5% ranked it in the top 2% of
all balanced funds tracked by Lipper Analytical Services.
Stocks comprised 62% of the Fund's assets at year-end. The stock portion is
diversified by sector and size with 40% in small-cap issues, 30% in mid-cap
issues, and 30% in large-cap issues. Each stock is owned in one of our other
equity mutual funds and, therefore, is consistent with our analytical criteria
of rapid earnings growth, substantial appreciation potential, and limited risk.
Based on the capitalization weightings, we currently find the most compelling
investments in the small-cap arena.
At year-end, high-grade corporate and U.S. treasury securities comprised 34% of
assets, and cash was 4% of assets. The fixed income segment benefited from a
late-year rally in bonds which provided capital gains to augment the
approximately 6% yield of the fixed income portfolio. The average maturity was
6.8 years, fairly consistent throughout the year.
In summary, stock selection added significant value to the portfolio, with our
average stock up 31% for the year. The fixed income portion produced modest
capital gains to augment the income produced. The stock portion of the Balanced
Fund continues to provide for participation in rising equity markets while its
fixed income components cushion against inevitable market volatility, making
the Balanced Fund an ideal choice for the conservative investor.
Page 7
MONETTA INTERMEDIATE BOND FUND PERIOD ENDED 12/31/97
Monetta Intermediate Bond Fund:
Investment Objective: 30-Day SEC Yield: Average Maturity:
Capital Appreciation/Income 5.25% 4.5 Years
Total Net Assets:
$3.9 million
<TABLE>
<CAPTION>
Fund/Benchmark
AVERAGE ANNUAL TOTAL RETURN
Since Inception
1 Year 3 Years (3/1/93)
<S> <C> <C> <C>
Monetta Intermediate Bond Fund 8.91% 10.00% 7.62%
Lehman Govt/Corp 7.87% 8.98% 6.14%
Intermediate Bond Index*
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performane Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Monetta Intermediate
(Fiscal Year Covered) Bond Fund Lehman
<S> <C> <C>
3/1/93 10,000 10,007
3/93 10,000 10,028
6/93 10,399 10,255
9/93 10,732 10,486
12/93 10,817 10,504
3/94 10,585 10,291
6/94 10,494 10,229
9/94 10,613 10,313
12/94 10,705 10,302
3/95 11,270 10,754
6/95 11,866 11,292
9/95 12,046 11,479
12/95 12,282 11,883
3/96 12,245 11,784
6/96 12,428 11,859
9/96 12,702 12,068
12/96 13,074 12,364
3/97 13,041 12,350
6/97 13,485 12,715
9/97 13,908 13,058
12/97 14,238 13,338
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta 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 at bottom of Page 2.
PORTFOLIO COMPOSITION MATURITY PROFILE:
<TABLE>
<CAPTION>
Maturity Profile:
<S> <C>
1 Year or Less 12.7%
1 - 3 Years 9.2%
4 - 6 Years 55.3%
7 - 10 Years 22.4%
Over 10 Years .4%
</TABLE>
Commentary:
The 1997 return scorecard for the Monetta Intermediate Bond Fund was an
impressive one despite a roller coaster fixed income environment. The Fund's
return of 8.9% ranked it in the top 36th percentile among the Intermediate
Investment Grade Debt category, as measured by Lipper Analytical Services. The
Fund outperformed its primary benchmark, the Lehman Government Corporate
Intermediate Bond Index, by 104 basis points for the year.
The Fund's 30-day SEC yield at 12/31/97 was 5.25%. During the year, the Fund
paid out an annualized income return of 6.22%.
The global bond markets began 1997 with a sentiment that would have made
Charles Dickens proud - great expectations - but ended with perhaps the
greatest divergence of market opinion in this decade. The Federal Reserve
caused some mild angst during the first three quarters of the year, highlighted
by the March discount rate hike; but spread volatility was the lowest in three
decades in the higher-quality sectors. The fourth quarter took away Fed
uncertainty but left us with more negative surprises from Asia, a few European
short-term rate hikes, a flattening U.S. Treasury curve, and sloppy sector swap
spreads. The U.S. bond market responded positively to this sentiment change;
and, suddenly, the road to total return Oz became a lot more enjoyable as the
Fund ended 1997 on a positive note.
There is no doubt that 1998 will debut with many questions and few answers,
although there seems to be one given - global economic growth will suffer in
1998 as the Asian drama continues to play itself out. There is no miracle cure
for this dilemma. Global economic policy-making and capital markets will
continue to converge as they have done throughout the 1990s.
There are several factors that we will be monitoring closely during 1998 -
European Monetary Union, financial industry consolidation, asset
securitization, and declines in global government issuances, just to name a
few. We believe that the economy is arguably in the best shape since the 1960s
and expect both investment grade and high-yield valuations to improve modestly
during 1998 - at least in the first half - as rates continue to trend lower.
The Fund is currently maintaining a core strategy of overweighting higher
yielding sectors of the corporate market but will not hesitate to adjust
maturity and sector characteristics closer to the primary benchmark as the
anticipated improvement in rates continues.
Page 8
MONETTA GOVERNMENT MONEY MARKET FUND PERIOD ENDED 12/31/97
Monetta Government Money Market:
Investment Objective: 7-Day Yield: Average Days to Maturity:
Income and Capital Preservation 5.05% 41 Days
Total Net Assets:
$4.5 million
<TABLE>
<CAPTION>
Fund/Benchmark Since Inception
1 Year 3 Years (3/1/93)
<S> <C> <C> <C>
Monetta Government Money
Market Fund 5.15%** 5.36%** 4.64%**
Lipper US Gov't Money
Market Funds Avg.* 4.90% 4.98% 4.28%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Money Market Lipper
(Fiscal Year Covered) Average
<S> <C> <C>
3/1/93 10,000 10,000
3/93 10,013 10,023
6/93 10,072 10,088
9/93 10,147 10,154
12/93 10,224 10,222
3/94 10,301 10,290
6/94 10,396 10,374
9/94 10,507 10,475
12/94 10,637 10,597
3/95 10,788 10,738
6/95 10,950 10,885
9/95 11,110 11,030
12/95 11,262 11,174
3/96 11,401 11,309
6/96 11,539 11,440
9/96 11,683 11,579
12/96 11,832 11,711
3/97 11,977 11,846
6/97 12,126 11,988
9/97 12,281 12,135
12/97 12,441 12,284
</TABLE>
**Total returns are net of advisory fees waived and voluntary absorption of all
or part of the Fund's operating expenses by the Advisor. Had the advisory fee
not been waived, the 7-day SEC yield would have been 4.67%, versus 5.05%. 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 at bottom of Page 2.
<TABLE>
<CAPTION>
<S> <C>
Government Agencies 99.6%
Short-Term Investments, Net .4%
Total 100.0%
</TABLE>
Commentary:
For the twelve months ending December 31, 1997, the Monetta Government Money
Market Fund posted an impressive return of 5.15%. The Fund was ranked 14th of
118 funds in the U.S. Government money market funds category, as measured by
Lipper Analytical Services. The average return of the Lipper U.S. Government
Fund category was 4.90%. As of December 31, 1997, the Fund's seven-day yield
was 5.05%, with an average maturity of 41 days.
Money market yields were reasonably constant over the past six months but
slightly higher for the year as evidenced by the 60-89 day Federal Farm Credit
yield curve, which increased from 5.32% early in the year to 5.52% on December
31, 1997.
For the year, the Fund maintained an average maturity of 62 days. The
flattening of the yield curve did not warrant a longer maturity risk given the
anticipated return. In 1998, it appears that the Federal Reserve will provide
additional liquidity and ease of monetary policy in response to slower economic
growth and moderate inflation expectation. Two major factors for this belief
are a soft landing scenario for the Asian crisis and good news on the budget
deficit which could reduce short-end government financing needs. Going forward,
we do not anticipate any major change in the Fund's characteristics until
current events begin to acknowledge Federal Reserve easing.
Page 9
Independent Auditors' Report
The Boards 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 Small-Cap
Equity Fund, 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, 1997, 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, 1997, 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, 1997; 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 19, 1998
Page 10
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 95.7%
<S> <C>
CONSUMER RELATED - 35.4% $57,844
Broadcasting/Cable TV - 3.0%
*27,273 Chancellor Media Corp - CL A $ 2,035
*40,000 Metro Networks, Inc. 1,310
*153,500 VDI Media 1,478
4,823
Food Processing - 0.9%
*50,700 WSMP, Inc. 1,470
Recreation/Entertainment - 2.7%
*47,800 AMF Bowling, Inc. 1,195
*27,000 Avis Rent A Car, Inc 862
*40,000 Budget Group, Inc. - CL A 1,383
*50,000 Dollar Thrifty 1,025
4,465
Restaurants/Lodging - 6.0%
*95,300 Ark Restaurants Corp. 1,120
*85,000 BridgeStreet Accommodations 863
*100,000 Hospitality Worldwide Services 1,313
70,000 Innkeepers USA Trust 1,085
*51,500 Landry's Seafood Restaurants,Inc. 1,236
*71,000 Logan's Roadhouse Inc. 1,101
*40,000 Outback Steakhouse, Inc. 1,150
30,000 Patriot American Hospitality,Inc. 864
*43,000 Schlotzsky's, Inc. 629
*50,000 Shells Seafood Restaurants, Inc. 487
9,848
Retail Manufactures & Distribution - 9.7%
*100,000 CHS Electronics, Inc. 1,712
*44,000 Central Garden & Pet Co. 1,155
*50,000 Galey & Lord, Inc. 894
*40,000 Hirsch Int'l Corp. - CL A 880
*110,000 Home Products Int'l, Inc. 1,293
*50,000 Industrial Distribution Group,Inc. 785
*52,500 Mohawk Industries, Inc. 1,152
*28,500 Performance Food Group Co. 677
*70,000 Quaker Fabric Corp. 1,373
*108,000 Styling Technology Corp. 1,755
*25,500 Suiza Foods Corp. 1,519
*50,500 Tefron Ltd. 1,161
*23,000 Triangle Pacific Corp. 779
30,000 Wolverine World Wide, Inc. 679
15,814
Retail Trades - 3.9%
*35,000 Dominick's Supermarkets, Inc. 1,278
*75,000 Furniture Brands Int'l, Inc. 1,538
*40,000 Guitar Center, Inc. 920
*25,000 Stage Stores, Inc. 934
*48,300 The Buckle, Inc. 1,654
6,324
Miscellaneous - 9.2%
*45,000 American Business Info.,Inc.-CL A 461
*35,000 American Business Info.,Inc.-CL B 359
*100,000 American Eco Corp. 1,081
*50,000 CKS Group, Inc. 706
*25,000 Consolidated Graphics, Inc. 1,166
*101,000 FirstService Corp. 758
*53,000 Forensic Technologies Int'l Corp. 662
*80,000 MAXIMUS, Inc. 1,935
*125,000 May & Speh, Inc. 1,687
40,000 Norrell Corp. 795
*20,000 QuickResponse Services, Inc. 740
*50,000 SOS Staffing Services, Inc. 944
*35,000 Superior Services, Inc. 1,011
*65,500 Vestcom Int'l, Inc. 1,465
*60,000 Warrantech Corp. 585
*40,000 Waste Industries, Inc. 745
15,100
FINANCIAL RELATED -7.3% $12,016
Financial Services - 7.3%
*40,000 Affiliated Managers Group, Inc. $ 1,160
*60,000 Annaly Mortgage Management, Inc. 660
*60,000 BA Merchant Services, Inc. 1,065
30,000 Excel Realty Trust, Inc. 945
55,000 Fidelity National Fin'l, Inc. 1,712
*47,300 First Int'l Bancorp, Inc. 573
*40,000 Golf Trust of America, Inc. 1,160
*100,000 Imperial Credit Commercial
Mortgage Investment Corp. 1,462
*65,000 LINC Capital, Inc. 1,276
60,000 Ocwen Asset Investment Corp. 1,230
*30,000 Trammell Crow Co. 773
12,016
Page 11
SCHEDULE OF INVESTMENTS DECEMBER 31, 197
Schedule of Investments December 31, 1997
MONETTA FUND (CONTINUED)
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
INDUSTRIAL RELATED - 22.9% $37,358
ENERGY RESOURCES & SERVICES - 3.8%
*60,000 HANOVER COMPRESSOR CO. $ 1,226
*60,000 ITEQ, INC. 690
*140,000 NEWPARK RESOURCES, INC. 2,450
*50,000 THE HOUSTON EXPLORATION CO. 919
*100,000 TITAN EXPLORATION, INC. 950
6,235
HOUSING - 0.7%
*65,625 AMERICAN HOMESTAR CORP. 1,083
INDUSTRIAL & ELECTRONICS PRODUCTS - 14.3%
*75,350 AFC CABLE SYSTEMS, INC. 2,242
*79,000 ADVANCED LIGHTING TECH., INC. 1,501
30,000 APPLIED POWER, INC. 2,070
*50,000 BALLANTYNE OF OMAHA, INC. 900
*50,000 BERG ELECTRONICS CORP. 1,137
63,000 CHART INDUSTRIES, INC. 1,437
*60,000 FIBERMARK, INC. 1,290
*30,000 GENRAD, INC. 906
*100,000 JPM CO. 2,125
*50,000 KELLSTROM INDUSTRIES, INC. 1,237
70,000 MASCOTECH, INC. 1,286
*39,000 METTLER-TOLEDO INT'L, INC. 673
20,000 PRECISION CASTPARTS CORP. 1,206
*24,600 SPS TECHNOLOGIES, INC. 1,073
70,000 SPARTECH CORP. 1,059
*66,000 TOTAL CONTROL PRODUCTS, INC. 809
*60,000 TRIDENT INT'L, INC. 780
*40,000 U.S. FILTER CORP. 1,198
*60,000 WPI GROUP, INC. 442
23,371
TRANSPORTATION - 3.5%
27,000 EXPEDITORS INT'L OF
WASHINGTON, INC. 1,040
*100,000 MILLER INDUSTRIES, INC. 1,075
*85,000 RAILAMERICA, INC. 547
*51,000 SIMON TRANSPORTATION
SERVICES, INC. 1,224
*30,000 SWIFT TRANSPORTATION CO., INC. 971
25,000 USFREIGHTWAYS CORP. 812
5,669
MISCELLANEOUS - 0.6%
*40,000 NICHOLS RESEARCH CORP. 1,000
MEDICAL RELATED - 13.4% $21,900
MEDICAL SUPPLIES - 2.1%
50,000 BALLARD MEDICAL PRODUCTS $ 1,212
*110,000 GRAHAM-FIELD HEALTH
PRODUCTS, INC. 1,836
*30,000 MERIDIAN DIAGNOSTICS, INC. 304
3,352
MEDICAL TECHNOLOGY - 2.3%
55,000 ADAC LABORATORIES 1,086
*30,000 COHR, INC. 382
*40,000 OEC MEDICAL SYSTEMS, INC. 798
*80,000 STERIGENICS INT'L, INC. 1,520
3,786
PHARMACEUTICALS - 5.7%
*113,000 CHIREX, INC. 1,992
70,000 JONES MEDICAL IND., INC. 2,677
*30,000 MEDICIS PHARMACEUTICAL
CORP. - CL A 1,534
*156,366 PHARMERICA, INC. 1,622
*23,100 PRIORITY HEALTHCARE CORP. 349
*110,000 VIVUS, INC. 1,169
9,343
PHYSICIAN SERVICES - 3.3%
*71,000 CASTLE DENTAL CENTERS, INC. 550
*27,500 HEALTHWORLD CORP. 332
91,300 HOOPER HOLMES, INC. 1,330
*61,000 MEDQUIST, INC. 2,120
*72,500 SHERIDAN HEALTHCARE, INC. 1,087
5,419
TECHNOLOGY RELATED -16.7% $27,336
COMPUTER SOFTWARE & SYSTEMS - 2.1%
*30,000 PLATINUM TECHNOLOGY, INC. $ 848
*30,000 PROGRAMMER'S PARADISE, INC. 281
*35,000 QUADRAMED CORP. 963
*40,900 SMALLWORLDWIDE PLC 894
*119,000 STORAGE DIMENSIONS, INC. 446
3,432
PAGE 12
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA FUND (CONTINUED)
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
COMPUTER & OFFICE EQUIPMENT - 2.2%
*37,500 ASIA ELECTRONICS HOLDING CO.,INC. 233
*50,500 NORSTAN, INC. 1,200
*112,000 SCANSOURCE, INC. 2,240
3,673
SEMICONDUCTORS - 4.0%
*55,100 ATMI, INC. 1,336
*83,400 AAVID THERMAL
TECHNOLOGIES, INC. 2,002
*150,000 AEROFLEX, INC. 1,312
*45,000 AMERICAN TECHNICAL
CERAMICS CORP. 681
*40,000 ANADIGICS, INC. 1,205
6,536
TELECOMMUNICATIONS & EQUIPMENT - 8.4%
*55,200 AMERILINK CORP. 1,421
*63,000 AXSYS TECHNOLOGIES, INC. 1,162
*102,000 CMC INDUSTRIES, INC. 599
*125,400 COMDIAL CORP. 1,160
*85,000 DYCOM INDUSTRIES, INC. 1,833
*24,000 ELECTROMAGNETIC SCIENCES, INC. 486
*60,000 MASTEC, INC. 1,373
*74,000 P-COM, INC. 1,277
*56,000 REMEC, INC. 1,260
*100,000 RMH TELESERVICES, INC. 637
*100,000 TRANSCRYPT INT'L, INC. 2,487
13,695
TOTAL COMMON STOCKS
(COST $133,229) (A) 156,454
VARIABLE DEMAND NOTES - 2.6%
3,779,700 AMERICAN FAMILY - 5.64% 3,780
489,800 WARNER LAMBERT - 5.64% 490
TOTAL VARIABLE DEMAND NOTES 4,270
COMMERCIAL PAPER - 3.1%
3,000,000 MERRILL LYNCH
5.820% DUE 01/14/98 2,993
2,000,000 MERRILL LYNCH
5.800% DUE 01/23/98 1,993
TOTAL COMMERCIAL PAPER 4,986
TOTAL SHORT-TERM INVESTMENTS 9,256
TOTAL INVESTMENTS - 101.4%
(COST $142,485) (A) 165,710
OTHER ASSETS LESS LIABILITIES - (1.4)% 2,295
NET ASSETS - 100.0% $163,415
</TABLE>
(A) FOR TAX PURPOSES, COST IS $142,557; THE AGGREGATE GROSS UNREALIZED
APPRECIATION IS $30,713; AND AGGREGATE GROSS UNREALIZED DEPRECIATION IS
$7,560, RESULTING IN NET UNREALIZED APPRECIATION OF $23,153
(IN THOUSANDS).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
* NON-INCOME PRODUCING SECURITY.
PAGE 13
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA SMALL-CAP EQUITY FUND
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 96.8%
<S> <C>
CONSUMER RELATED - 31.3% $790
BROADCASTING/CABLE TV - 2.3%
*6,000 VDI MEDIA $58
RECREATION/ENTERTAINMENT - 2.2%
*2,200 AMF BOWLING, INC. 55
RESTAURANTS/LODGING - 4.4%
*4,000 ARK RESTAURANTS CORP. 47
*5,000 HOSPITALITY WORLDWIDE SERVICES 66
113
RETAIL MANUFACTURES & DISTRIBUTION - 8.1%
*5,000 CHS ELECTRONICS, INC. 86
*4,500 HOME PRODUCTS INT'L, INC. 53
*4,000 STYLING TECHNOLOGY CORP. 65
204
MISCELLANEOUS - 14.3%
*4,000 FORENSIC TECH INT'L CORP. 50
*3,000 MAXIMUS, INC. 73
*5,000 MAY & SPEH, INC. 67
*3,000 SOS STAFFING SERVICE, INC. 57
*3,000 VESTCOM INT'L, INC. 67
*2,500 WASTE INDUSTRIES, INC. 46
360
FINANCIAL RELATED - 10.2% $256
FINANCIAL SERVICES - 10.2%
*1,500 AFFILIATED MGRS GROUP, INC. $ 43
*2,000 ANNALY MORTGAGE MANAGEMENT,INC. 22
*1,800 FIRST INT'L BANCORP, INC. 22
*4,000 IMPERIAL CREDIT COMMERCIAL
MORTGAGE INVESTMENT CORP. 58
*3,000 LINC CAPITAL, INC. 59
*2,000 TRAMMELL CROW CO. 52
256
INDUSTRIAL RELATED - 11.2% $281
ENERGY RESOURCES & SERVICES - 2.8%
*4,000 NEWPARK RESOURCES, INC. $ 70
INDUSTRIAL & ELECTRONICS PRODUCTS - 7.1%
*3,500 JPM CO. 74
*1,000 SPS TECHNOLOGIES, INC. 44
*5,000 TOTAL CONTROL PRODUCTS, INC. 61
179
TRANSPORTATION - 1.3%
*5,000 RAILAMERICA, INC. 32
MEDICAL RELATED - 12.7% $321
MEDICAL SUPPLIES - 2.5%
*3,800 GRAHAM-FIELD HEALTH PROD,INC. 63
MEDICAL TECHNOLOGY - 2.6%
*3,500 STERIGENICS INT'L, INC. 67
PHARMACEUTICALS - 5.5%
*1,500 CHIREX, INC. 26
*2,000 JONES MEDICAL IND., INC. 77
*700 MEDICIS PHARMACEUTICAL
CORP. CL A 36
139
PHYSICIAN SERVICES - 2.1%
*1,500 MEDQUIST, INC. 52
TECHNOLOGY RELATED - 31.4% $790
COMPUTER SOFTWARE & SYSTEMS - 3.3%
*3,000 QUADRAMED CORP. $82
COMPUTER & OFFICE EQUIPMENT - 2.4%
*3,000 SCANSOURCE, INC. 60
SEMICONDUCTORS - 8.3%
*3,000 AAVID THERMAL TECHNOLOGIES,INC. 72
*7,000 AEROFLEX, INC. 61
*2,500 ANADIGICS, INC. 76
209
PAGE 14
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA SMALL-CAP EQUITY FUND (CONTINUED)
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
TELECOMMUNICATIONS & EQUIPMENT - 17.4%
*2,000 AMERILINK CORP. 52
*3,000 AXSYS TECHNOLOGIES, INC. 55
*3,000 BRIGHTPOINT, INC. 42
*5,000 CMC INDUSTRIES, INC. 29
*6,000 COMDIAL CORP. 56
*2,000 DYCOM INDUSTRIES, INC. 43
*3,300 REMEC, INC. 74
*8,000 RMH TELESERVICES, INC. 51
*1,500 TRANSCRYPT INT'L, INC. 37
439
TOTAL COMMON STOCKS
(COST $2,321) (A) 2,438
VARIABLE DEMAND NOTES - 4.9%
71,600 JOHNSON CONTROLS - 5.57% 72
51,400 WARNER LAMBERT - 5.64% 51
TOTAL VARIABLE DEMAND NOTES 123
TOTAL INVESTMENTS - 101.7%
(COST $2,444) (A) 2,561
OTHER ASSETS LESS LIABILITIES - (1.7)% (43)
NET ASSETS - 100.0% $2,518
</TABLE>
(A) COST IS IDENTICAL FOR BOOK AND TAX PURPOSES; THE AGGREGATE GROSS
UNREALIZED APPRECIATION IS $252, AND AGGREGATE GROSS UNREALIZED DEPRECIATION
IS $135, RESULTING IN NET UNREALIZED APPRECIATION OF $117 (IN THOUSANDS).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
* NON-INCOMING PRODUCING SECURITY.
PAGE 15
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA MID-CAP EQUITY FUND
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 93.4%
<S> <C>
CONSUMER RELATED - 27.7% $6,062
FOOD PROCESSING - 1.6%
6,000 DEAN FOODS CO. $357
RECREATION/ENTERTAINMENT - 7.3%
*20,000 AMF BOWLING, INC. 500
*12,000 BUDGET GROUP, INC. 415
*10,000 GALILEO INT'L, INC. 276
10,000 HERTZ CORP. - CL A 402
1,593
RESTAURANTS/LODGING - 1.2%
6,000 CKE RESTAURANTS, INC. 253
RETAIL MANUFACTURES & DISTRIBUTION - 3.1%
*25,000 CHS ELECTRONICS, INC. 428
8,000 HASBRO, INC. 252
680
RETAIL TRADES - 8.3%
20,000 AMERICAN STORES CO. 411
*14,000 AUTOZONE, INC. 406
6,000 DILLARD'S INC. 211
4,500 NORDSTROM, INC. 272
*18,000 PROFFITT'S, INC. 512
1,812
MISCELLANEOUS - 6.2%
*30,000 ALLIED WASTE INDUSTRIES, INC. 700
*17,000 USA WASTE SERVICES, INC. 667
1,367
FINANCIAL RELATED - 12.4% $2,726
FINANCIAL SERVICES - 12.4%
*10,000 AFFILIATED MANAGERS GROUP,INC. $290
10,000 BANK UNITED CORP. - CL A 489
*7,000 DIME BANCORP, INC. 212
*10,000 HARTFORD LIFE, INC. 453
*20,000 IMPERIAL CREDIT COMMERCIAL
MORTGAGE INVESTMENT CORP. 293
*7,700 NATIONWIDE FINANCIAL
SERVICES, INC. CL A 278
*10,000 SECURITY CAPITAL GROUP,INC.-CL B 325
*15,000 TRAMMELL CROW CO. 386
2,726
INDUSTRIAL RELATED - 31.4% $6,867
ENERGY RESOURCES & SERVICES - 9.5%
*10,000 HANOVER COMPRESSOR CO. $ 204
*10,000 INPUT/OUTPUT, INC. 297
*30,000 NEWPARK RESOURCES, INC. 525
*15,000 SANTE FE INT'L CORP. 611
8,000 TIDEWATER, INC. 441
2,078
HOUSING - 0.9%
6,000 OAKWOOD HOMES CORP. 199
INDUSTRIAL & ELECTRONICS PRODUCTS - 14.9%
7,000 APPLIED POWER, INC. - CL A 483
19,000 COOPER TIRE AND RUBBER CO. 463
*13,000 GULFSTREAM AEROSPACE CORP. 380
10,000 HARNISCHFEGER INDUSTRIES, INC. 353
25,000 MASCOTECH, INC. 460
*15,000 METTLER-TOLEDO INT'L, INC. 259
7,000 PRECISION CASTPARTS CORP. 422
*15,000 US FILTER CORP. 449
3,269
MINING/MINERAL RESOURCES - 3.3%
*7,000 ALUMAX, INC. 238
8,000 REYNOLDS METALS CO. 480
718
TRANSPORTATION - 1.7%
4,500 CNF TRANSPORTATION, INC. 173
6,000 SWIFT TRANSPORTATION CO., INC. 194
367
MISCELLANEOUS - 1.1%
4,000 CUMMINS ENGINE 236
PAGE 16
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA MID-CAP EQUITY FUND (CONTINUED)
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
MEDICAL RELATED -10.0% $2,193
PHARMACEUTICALS - 7.8%
*6,500 ELAN CORP. PLC - ADR $ 333
10,000 JONES MEDICAL INDUSTRIES, INC. 382
*20,000 PHARMERICA, INC. 207
*25,000 VIVUS, INC. 266
*16,000 WATSON PHARMACEUTICALS, INC. 519
1,707
PHYSICIAN SERVICES - 2.2%
*18,000 PHYCOR, INC. 486
TECHNOLOGY RELATED - 11.9% $2,621
COMPUTER SOFTWARE & SYSTEMS - 2.4%
*15,000 PLATINUM TECHNOLOGY, INC. $ 424
*5,000 SYMANTEC CORP. 109
533
COMPUTER & OFFICE EQUIPMENT - 1.8%
*10,000 JABIL CIRCUIT, INC. 398
SEMICONDUCTORS - 0.5%
*6,000 LSI LOGIC CORP. 119
TELECOMMUNICATIONS & EQUIPMENT - 7.2%
11,000 CORNING, INC. 408
8,000 HARRIS CORP. 367
*15,000 MASTEC, INC. 343
*10,000 NEWBRIDGE NETWORKS CORP. 349
*6,000 P-COM, INC. 104
1,571
TOTAL COMMON STOCKS
(COST $18,428) (A) 20,469
VARIABLE DEMAND NOTES - 3.1%
362,000 AMERICAN FAMILY - 5.64% 362
320,100 PITNEY BOWES - 5.57% 320
TOTAL VARIABLE DEMAND NOTES 682
COMMERCIAL PAPER - 4.6%
1,000,000 MERRILL LYNCH & CO.
5.810% DUE 01/21/98 997
TOTAL SHORT-TERM INVESTMENTS 1,679
TOTAL INVESTMENTS - 101.1%
(COST $20,107) (A) 22,148
OTHER ASSETS LESS LIABILITIES (1.1)% (240)
NET ASSETS - 100.0% $21,908
</TABLE>
(A) COST IS IDENTICAL FOR BOOK AND TAX PURPOSES; THE AGGREGATE GROSS
UNREALIZED APPRECIATION IS $3,174, AND AGGREGATE GROSS UNREALIZED
DEPRECIATION IS $1,133, RESULTING IN NET UNREALIZED APPRECIATION OF $2,041
(IN THOUSANDS).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
* NON-INCOME PRODUCING SECURITY.
PAGE 17
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA LARGE-CAP EQUITY FUND
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 92.2%
<S> <C>
CONSUMER RELATED - 27.5% $1,173
RECREATION/ENTERTAINMENT - 7.7%
*5,000 AMF BOWLING, INC. $ 125
*3,000 GALILEO INT'L, INC. 83
3,000 HERTZ CORP. 121
329
RETAIL MANUFACTURES & DISTRIBUTION - 3.8%
2,000 ESTEE LAUDER CO. 103
1,200 KIMBERLY-CLARK CORP. 59
162
RETAIL TRADES - 6.3%
4,400 AMERICAN STORES CO. 90
*2,500 AUTOZONE, INC. 73
*9,000 KMART CORP. 104
267
MISCELLANEOUS - 9.7%
*4,000 ALLIED WASTE INDUSTRIES, INC. 93
2,000 BROWNING-FERRIS INDUSTRIES, INC. 74
1,000 COASTAL CORP. 62
1,100 TIME WARNER, INC. 68
*3,000 USA WASTE SERVICES, INC. 118
415
FINANCIAL RELATED - 15.1% $644
FINANCIAL SERVICES - 15.1%
1,800 EQUITABLE COMPANIES, INC. $ 89
1,100 FLEET FINANCIAL GROUP, INC. 82
*2,000 HARTFORD LIFE, INC. 91
*600 HOUSEHOLD INT'L, INC. 76
*2,600 NATIONWIDE FINANCIAL SVCS.,INC. 94
CL A
500 SLM HOLDING CORP. 70
*2,000 SECURITY CAPITAL GROUP B 65
1,200 WASHINGTON MUTUAL, INC. 77
644
INDUSTRIAL RELATED - 29.6% $1,266
ENERGY RESOURCES & SERVICES - 7.4%
1,000 DIAMOND OFFSHORE DRILLING, INC. $ 48
*3,000 SANTE FE INT'L CORP. 122
2,000 TRANSOCEAN OFFSHORE, INC. 96
2,100 UNION PACIFIC RESOURCES GROUP,INC. 51
317
INDUSTRIAL & ELECTRONICS PRODUCTS - 10.7%
2,500 COOPER TIRE AND RUBBER CO. 61
1,500 EATON CORP. 134
1,600 HARNISCHFEGER INDUSTRIES, INC. 56
1,000 PRECISION CASTPARTS CORP. 60
*3,000 US FILTER CORP. 90
1,000 WHIRLPOOL CORP. 55
456
MINING/MINERAL RESOURCES - 6.6%
1,800 ALUMINUM COMPANY OF AMERICA 127
1,000 NUCOR CORP. 48
1,800 REYNOLDS METALS CO. 108
283
MISCELLANEOUS - 4.9%
1,000 CUMMINS ENGINE 59
1,200 INTERNATIONAL PAPER CO. 52
2,500 TENNECO, INC. 99
210
MEDICAL RELATED - 5.2% $221
PHARMACEUTICALS - 1.8%
*1,500 ELAN CORP. PLC - ADR $77
PHYSICIAN SERVICES - 3.4%
*4,000 MEDPARTNERS, INC. 90
*2,000 PHYCOR, INC. 54
144
TECHNOLOGY RELATED - 14.8% $629
COMPUTER & OFFICE EQUIPMENT - 1.5%
900 XEROX CORP. $ 66
SEMICONDUCTORS - 2.0%
*1,800 ALTERA CORP. 59
*1,200 LSI LOGIC CORP. 24
83
PAGE 18
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA LARGE-CAP EQUITY FUND (CONTINUED)
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
TELECOMMUNICATIONS & EQUIPMENT - 11.3%
*2,200 AIRTOUCH COMMUNICATIONS, INC. 91
1,800 CINCINNATI BELL, INC. 56
2,800 CORNING INC. 104
2,200 HARRIS CORP. 101
900 MOTOROLA, INC. 51
*2,200 NEWBRIDGE NETWORKS CORP. 77
480
TOTAL COMMON STOCKS
(COST $3,734) (A) 3,933
VARIABLE DEMAND NOTES - 3.1%
133,000 JOHNSON CONTROLS - 5.57% 133
COMMERCIAL PAPER - 4.7%
200,000 MERRILL LYNCH
5.840% DUE 01/16/98 200
TOTAL SHORT-TERM INVESTMENTS 333
TOTAL INVESTMENTS - 100.0%
(COST $4,067) (A) 4,266
OTHER ASSETS LESS LIABILITIES (1)
NET ASSETS - 100.0% $4,265
</TABLE>
(A) COST IS IDENTICAL FOR BOOK AND TAX PURPOSES; THE AGGREGATE GROSS
UNREALIZED APPRECIATION IS $391, AND AGGREGATE GROSS UNREALIZED
DEPRECIATION IS $192, RESULTING IN NET UNREALIZED APPRECIATION
OF $199 (IN THOUSANDS).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
* NON-INCOME PRODUCING SECURITY.
PAGE 19
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA BALANCED FUND
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCKS - 61.5%
<S> <C>
CONSUMER RELATED - 20.4% $2,464
BROADCASTING/CABLE TV - 0.8%
*10,000 VDI MEDIA $96
FOOD PROCESSING - 0.7%
1,500 DEAN FOODS CO. 89
RECREATION/ENTERTAINMENT - 3.9%
5,000 AMF BOWLING, INC. 125
4,000 BUDGET GROUP, INC. - CL A 138
3,000 GALILEO INT'L, INC. 83
3,000 HERTZ CORP. 121
467
RESTAURANTS/LODGING - 1.7%
*6,000 ARK RESTAURANTS CORP. 70
*6,000 BRIDGESTREET ACCOMMODATIONS 61
*6,000 HOSPITALITY WORLDWIDE SERVICES 79
210
RETAIL MANUFACTURES & DISTRIBUTION - 6.1%
*7,000 CHS ELECTRONICS, INC 120
1,500 ESTEE LAUDER CO. 77
*4,000 HIRSCH INT'L CORP. - CL A 88
*5,000 INDUSTRIAL DISTRIBUTION GROUP,INC. 78
1,800 KIMBERLY-CLARK CORP. 89
*3,000 QUAKER FABRIC CORP. 59
*7,000 STYLING TECHNOLOGY CORP. 114
*5,000 TEFRON LTD. 115
740
RETAIL TRADES - 2.4%
4,000 AMERICAN STORES CO. 82
*3,000 AUTOZONE, INC. 87
*10,000 KMART CORP. 116
285
MISCELLANEOUS - 4.8%
*6,000 ALLIED WASTE INDUSTRIES, INC. 140
*2,500 AMERICAN BUSINESS INFO., INC. 26
CL A
*2,500 AMERICAN BUSINESS INFO., INC. 25
CL B
*10,000 FIRSTSERVICE CORP 75
*3,500 MAXIMUS, INC. 85
*6,000 MAY & SPEH, INC. 81
*3,700 USA WASTE SERVICES, INC. 145
577
FINANCIAL RELATED - 8.7% $1,046
FINANCIAL SERVICES - 8.7%
*3,500 AFFILIATED MANAGERS GROUP, INC. $101
*6,000 ANNALY MORTGAGE MANAGEMENT, INC. 66
*2,000 EQUITABLE COMPANIES, INC. 100
*900 FIRST INT'L BANCORP, INC. 11
*3,000 GOLF TRUST OF AMERICA, INC. 87
*10,000 IMPERIAL CREDIT COMMERCIAL
MORTGAGE INVESTMENT CORP. 146
*7,000 LINC CAPITAL, INC. 137
*1,900 NATIONWIDE FINANCIAL SVCS., INC. 69
CL A
5,000 OCWEN ASSET INVESTMENT CORP. 103
*3,000 SECURITY CAPITAL GROUP B 97
*5,000 TRAMMELL CROW CO. 129
1,046
INDUSTRIAL RELATED - 15.8% $1,900
ENERGY RESOURCES & SERVICES - 4.1%
*7,000 NEWPARK RESOURCES, INC. $ 123
*3,400 SANTE FE INT'L CORP. 138
2,000 TIDEWATER, INC. 110
2,500 TRANSOCEAN OFFSHORE, INC. 121
492
INDUSTRIAL & ELECTRONICS PRODUCTS - 8.3%
*4,000 ADVANCED LIGHTING TECH., INC. 76
4,000 COOPER TIRE AND RUBBER CO. 98
1,600 EATON CORP. 143
*3,000 GULFSTREAM AEROSPACE CORP. 88
1,200 HARNISCHFEGER INDUSTRIES, INC. 42
*4,000 JPM CO. 85
6,000 MASCOTECH, INC. 110
*6,000 METTLER-TOLEDO INT'L INC. 104
1,400 PRECISION CASTPARTS CORP. 84
*8,500 TOTAL CONTROL PRODUCTS, INC. 104
*2,000 U.S. FILTER CORP. 60
994
MINING/MINERAL RESOURCES - 1.9%
2,000 ALUMINUM COMPANY OF AMERICA 141
1,500 REYNOLDS METALS CO. 90
231
TRANSPORTATION - 0.5%
*10,000 RAILAMERICA, INC. 64
MISCELLANEOUS - 1.0%
3,000 TENNECO, INC. 119
PAGE 20
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA BALANCED FUND (CONTINUED)
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
MEDICAL RELATED - 6.2% $744
MEDICAL TECHNOLOGY - 1.5%
*7,000 COHR, INC. $ 89
*5,000 STERIGENICS INT'L INC. 95
184
PHARMACEUTICALS - 3.1%
*7,200 CHIREX INC. 127
*7,000 PHARMERICA, INC. 73
*7,000 VIVUS, INC. 74
*3,000 WATSON PHARMACEUTICALS, INC. 97
371
PHYSICIAN SERVICES - 1.6%
*10,000 CASTLE DENTAL CENTERS, INC. 77
*5,000 MEDPARTNERS, INC. 112
189
TECHNOLOGY RELATED - 10.4% $1,263
COMPUTER SOFTWARE & SYSTEMS - 0.3%
*10,000 STORAGE DIMENSIONS, INC. $ 38
COMPUTER & OFFICE EQUIPMENT - 1.0%
*6,000 SCANSOURCE, INC. 120
SEMICONDUCTORS - 2.9%
*5,000 AAVID THERMAL TECHNOLOGIES, INC. 120
*13,000 AEROFLEX, INC. 114
*4,000 ANADIGICS, INC. 120
354
TELECOMMUNICATIONS & EQUIPMENT - 6.2%
*6,000 AXSYS TECHNOLOGIES, INC. 111
*7,000 CMC INDUSTRIES, INC. 41
*6,000 COMDIAL CORP. 56
3,000 CORNING, INC. 111
*3,000 DYCOM INDUSTRIES, INC. 65
2,000 HARRIS CORP. 92
*2,300 NEWBRIDGE NETWORKS CORP. 80
*12,000 RMH TELESERVICES, INC. 76
*4,800 TRANSCRYPT INT'L, INC. 119
751
TOTAL COMMON STOCKS
(COST $7,130) (A) 7,417
VARIABLE DEMAND NOTES - 4.8%
449,200 JOHNSON CONTROLS - 5.57% 449
122,000 PITNEY BOWES - 5.57% 122
TOTAL VARIABLE DEMAND NOTES 571
U.S. TREASURY NOTES - 13.9%
100,000 6.000% DUE 10/15/99 101
900,000 5.750% DUE 11/15/00 902
220,000 6.250% DUE 02/15/03 225
300,000 5.750% DUE 08/15/03 300
150,000 5.875% DUE 02/15/04 151
TOTAL U.S. TREASURY NOTES 1,679
CORPORATE BONDS - 9.5%
450,000 CHASE MANHATTAN
9.750% DUE 11/01/01 504
300,000 ONT GLOBAL BOND
7.375% DUE 01/27/03 315
300,000 BANK UNITED CORP.
8.875% DUE 05/01/07 328
TOTAL CORPORATE BONDS 1,147
GOVERNMENT OBLIGATIONS - 6.6%
775,000 HUD HOUSING URBAN DEVELOPMENT
6.410% DUE 08/01/05 792
MORTGAGE OBLIGATIONS - 3.4%
400,000 GREEN TREE HOME IMPV. MORTG.
6.780% DUE 06/15/28 409
TOTAL INVESTMENTS - 99.7%
(COST $11,664) (A) 12,015
OTHER ASSETS LESS LIABILITIES - 0.3% 39
NET ASSETS - 100.0% $12,054
</TABLE>
(A) FOR TAX PURPOSES, COST IS $11,664; THE AGGREGATE GROSS UNREALIZED
APPRECIATION IS $870; AND AGGREGATE GROSS UNREALIZED
DEPRECIATION IS $519; RESULTING IN NET UNREALIZED APPRECIATION OF $351
IN THOUSANDS).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
* NON-INCOME PRODUCING SECURITY.
PAGE 21
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA INTERMEDIATE BOND FUND
QUOTED
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
<TABLE>
<CAPTION>
TREASURY NOTES - 23.6%
<S> <C>
200,000 5.500% DUE 04/15/00 $ 199
210,000 6.625% DUE 04/30/02 217
100,000 6.000% DUE 07/31/02 101
200,000 5.750% DUE 08/15/03 200
200,000 6.500% DUE 05/15/05 209
926
MUNICIPAL TAXABLE BOND - 1.1%
40,000 SHEBOYGAN, WI TIF #6
8.250% DUE 03/15/03 43
CORPORATE BONDS - 63.3%
50,000 AMERICAN AIRLINES, 8.700%
DUE 01/15/98 50
50,000 SALOMON INC., 9.375%
DUE 04/15/98 51
200,000 AHMANSON, 6.530%
DUE 06/01/98 201
150,000 INT'L LEASE FINANCE, 6.690%
DUE 04/30/00 152
110,000 PACIFIC GAS & ELECTRIC, 8.750%
DUE 01/01/01 118
150,000 FIRST CHICAGO CORP., 11.250%
DUE 02/20/01 172
50,000 AMERICAN STANDARD, 9.875%
DUE 06/01/01 52
300,000 CHASE MANHATTAN, 9.750%
DUE 11/01/01 336
150,000 SMITHKLINE BEECH, 6.625%
DUE 01/28/02 151
175,000 ASSOCIATES CORP NA, 6.875%
DUE 06/20/02 178
50,000 DAYTON HUDSON, 9.750%
DUE 07/01/02 56
100,000 NATIONAL RURAL UTILITY, 6.500%
DUE 09/15/02 101
100,000 IBM CORP., 7.250%
DUE 11/01/02 105
100,000 RJR NABISCO INC., 8.625%
DUE 12/01/02 106
100,000 ONT-GLOBAL BOND, 7.375%
DUE 01/27/03 105
125,000 TEXACO CAPITAL, 8.500%
DUE 02/15/03 138
100,000 WEBB, DEL E., 9.750%
DUE 03/01/03 103
100,000 SALOMON INC., 6.750%
DUE 01/15/06 101
100,000 BANK UNITED CORP., 8.875%
DUE 05/01/07 109
100,000 LCI INT'L. INC., 7.250%
DUE 06/15/07 104
2,489
U.S. GOVERNMENT AGENCIES - 9.1%
250,000 HUD HOUSING URBAN DEVELOPMENT
6.360% DUE 08/01/04 254
100,000 FEDERAL HOME LOAN BANK
6.440% DUE 11/28/05 103
357
MORTGAGE OBLIGATIONS - 0.3%
12,845 GNMA, 8.500%
DUE 07/15/21 14
VARIABLES DEMAND NOTES - 0.9%
35,000 WARNER LAMBERT - 5.64% 35
TOTAL INVESTMENTS - 98.3%
(COST $3,807) (A) 3,864
OTHER ASSETS AND LIABILITIES - 1.7% 69
NET ASSETS - 100.0% $3,933
</TABLE>
(A)COST IS IDENTICAL FOR BOOK AND TAX PURPOSES; THE AGGREGATE GROSS UNREALIZED
APPRECIATION IS $57, AND AGGREGATE GROSS UNREALIZED DEPRECIATION IS LESS THAN
$1 THOUSAND, RESULTING IN NET UNREALIZED APPRECIATION OF $57 (IN THOUSANDS).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
PAGE 22
SCHEDULE OF INVESTMENTS DECEMBER 31, 1997
MONETTA GOVERNMENT MONEY MARKET FUND
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (IN THOUSANDS)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS - 99.6%
FEDERAL HOME LOAN BANK DISC. NOTES-54.3%
<S> <C>
325,000 DUE 01/05/98 $ 325
210,000 DUE 01/26/98 209
230,000 DUE 02/05/98 229
700,000 DUE 02/17/98 695
385,000 DUE 02/24/98 382
310,000 DUE 03/02/98 307
280,000 DUE 03/18/98 277
2,424
FEDERAL NATIONAL MORTGAGE ASSOC. DISC. NOTE - 23.8%
640,000 DUE 01/16/98 638
425,000 DUE 02/05/98 423
1,061
FEDERAL HOME LOAN MORTGAGE
CORP. DISCOUNT NOTE - 21.5%
340,000 DUE 01/21/98 339
627,000 DUE 03/06/98 621
960
TOTAL INVESTMENTS - 99.6% 4,445
(COST $4,445) (A)
OTHER ASSETS LESS LIABILITIES - 0.4% 19
NET ASSETS - 100.0% $4,464
</TABLE>
(A) COST IS IDENTICAL FOR BOOK AND TAX PURPOSES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
PAGE 23
STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
SMALL-CAP MID-CAP
MONETTA EQUITY EQUITY
FUND FUND FUND
ASSETS:
<S> <C> <C> <C>
INVESTMENTS AT MARKET VALUE (COST: $142,485;
$2,444; $20,107; $4,067;$11,664; $3,807;
$4,445) (NOTE 1) $165,710 $2,561 $22,148
CASH 0 4 5
Interest and dividends
receivable 119 1 13
Receivable for securities sold 497 0 0
Total Assets 166,326 2,566 22,166
Liabilities:
Payables:
Custodial bank 438 0 0
Investment advisory fees (Note 2) 166 1 14
Distribution and service 0 1 39
charges payable
Investments purchased 2,173 42 195
Fund shares redeemed 0 0 0
Accrued expenses 134 4 10
Total Liabilities 2,911 48 258
Net assets $163,415 $2,518 $21,908
Analysis of net assets:
Paid in capital (b) 134,815 2,371 18,098
Accumulated undistributed
net investment income 0 0 0
Accumulated undistributed
net realized gain 5,375 30 1,769
Net unrealized appreciation
on investments 23,225 117 2,041
Net Assets $163,415 $2,518 $21,908
Net asset value, offering price, and redemption
price per share (9,460 shares of capital stock
and 181; 1,463; 319; 856; 377; 4,464 shares of
beneficial interest issued and outstanding
respectively)
$17.27 $13.90 $14.98
</TABLE>
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
(b) Amount for Monetta Fund represents $95 of $0.01 par value and $134,720 of
additional paid in capital, 100 million
shares are authorized. Each fund of Monetta Trust has an unlimited number
of no par value share of beneficial interest authorized.
Page 24
<TABLE>
<CAPTION>
Large-Cap Intermediate Government
Equity Balanced Bond Money Market
Fund Fund Fund Fund
<S> <C> <C> <C>
$4,266 $12,015 $3,864 $4,445
5 115 1 23
5 64 73 (a)
0 0 0 0
4,276 12,194 3,938 4,468
0 0 0 0
2 4 1 0
5 11 2 0
0 117 0 0
0 1 0 0
4 7 2 4
11 140 5 4
$4,265 $12,054 $3,933 $4,464
3,796 11,251 3,875 4,464
0 2 (a) 0
270 450 1 0
199 351 57 0
$4,265 $12,054 $3,933 $4,464
$13.36 $14.08 $10.45 $1.00
</TABLE>
Page 25
STATEMENTS OF OPERATIONS DECEMBER 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap
Monetta Equity Equity
Fund Fund* Fund
<S> <C> <C> <C>
Investment income and expenses:
Investment income:
Interest $ 956 $ 4 $ 83
Dividend 481 2 110
Other income 622 0 2
Total Investment Income 2,059 6 195
Expenses:
Investment advisory fee (Note 2) 1,665 7 153
Distribution expense 0 2 46
Custodial fees and bank cash 52 4 10
management fee
Transfer and shareholder servicing 738 4 42
agent fee
Other 0 0 0
Total Expenses 2,455 17 251
Expenses waived and reimbursed 0 0 0
Expenses net of waived and reimbursed 2,455 17 251
expenses
Net investment income (loss) (396) (11) (56)
Realized and unrealized gain on investments:
Realized gains on investments:
Proceeds from sales 208,690 1,389 26,852
Cost of securities sold 177,021 1,249 20,468
Net realized gain on investments 31,669 140 6,384
Net unrealized appreciation (depreciation) on investments:
Beginning of period 18,128 0 3,183
End of period 23,225 117 2,041
Net change in net unrealized appreciation (depreciation) on
investments during the period 5,097 117 (1,142)
Net realized and unrealized gain on 36,766 257 5,242
investments
Net increase in net assets from $36,370 $246 5,186
operatations
</TABLE>
* For period from 2/1/97 through 12/31/97.
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
Page 26
<TABLE>
<CAPTION>
Large-Cap Intermediate Government
Equity Balanced Bond Money Market
Fund Fund Fund Fund
<C> <C> <C> <C>
$ 21 $ 205 $ 202 $ 288
33 35 0 0
0 (a) (a) (a)
54 240 202 288
28 34 11 14
9 20 7 5
4 8 2 3
15 22 7 19
(a) (a) 0 0
56 84 27 41
0 0 (7) (20)
56 84 20 21
(2) 156 182 267
4,061 8,877 2,702 28,385
3,230 7,706 2,684 28,385
831 1,171 18 0
210 115 (13) 0
199 351 57 0
(11) 236 70 0
820 1,407 88 0
$818 $1,563 $270 $267
</TABLE>
Page 27
STATEMENTS OF CHANGES IN NET ASSETS DECEMBER 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap
Monetta Equity Equity
Fund Fund Fund
1997 1996 1997** 1997 1996
From investment activities:
Operations:
<S> <C> <C> <C> <C> <C>
Net investment income (loss) $ (396) $ (1,489) $ (11) $ (56) $ 52
Net realized gain (loss) on 31,669 (1,995) 140 6,384 423
investments
Net change in net unrealized appreciation
(depreciation) on investments
during the period 5,097 8,722 117 (1,142) 2,890
Net increase (decrease) in net assets
from operations 36,370 5,238 246 5,186 3,365
Distribution from net investment
income 0 0 0 (a) (52)
Distribution from short-term
capital gains, net (b) (15,860) 0 (99) (1,696) 0
Distribution from net (6,981) 0 0 (3,032) 0
realized gains
Increase (decrease) in net assets
from investment activities 13,529 5,238 147 458 3,313
From capital transactions (Note 3):
Proceeds from shares sold 13,641 19,940 2,498 5,590 5,820
Net asset value of shares issued
through dividend reinvestment 22,534 (a) 95 4,686 50
Cost of shares redeemed (97,806) (176,381) (222) (6,164) (6,061)
Increase (decrease) in net assets
from capital transactions (61,631) (156,441) 2,371 4,112 (191)
Total increase (decrease)
in net assets (48,102) (151,203) 2,518 4,570 3,122
Net assets at beginning
of period 211,517 362,720 0 17,338 14,216
Net assets at end of period* $163,415 $211,517 $2,518 $21,908 17,338
</TABLE>
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
(b) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
* Including undistributed net investment income at the beginning and end of
the period of $1 thousand and $0, respectively, for the Mid-Cap Equity Fund,
and $0 and $2 thousand, respectively, for the Balanced Fund.
** For period from 2/1/97 through 12/31/97.
Page 28
<TABLE>
<CAPTION>
Large-Cap Intermediate Government
Equity Balanced Bond Money Market
Fund Fund Fund Fund
1997 1996 1997 1996 1997 1996 1997 1996
<S> <C> <C> <C> <C> <C> <C> <C>
$ (2) $ 5 $ 156 $ 13 $ 182 $ 190 $ 267 $ 292
831 160 1,171 76 18 (4) 0 0
(11) 147 236 94 70 (4) 0 0
818 312 1,563 183 270 182 267 292
0 (4) (154) (13) (181) (190) (267) (292)
(296) 0 (676) 0 (14) (17) 0 0
(275) (141) (56) (61) (a) 0 0 0
247 167 677 109 75 (25) 0 0
2,135 1,496 9,742 1,941 1,371 653 6,338 15,949
559 144 618 72 170 175 252 268
(964) (591) (1,319) (196) (452) (1,623) (8,358) (14,378)
1,730 1,049 9,041 1,817 1,089 (795) (1,768) 1,839
1,977 1,216 9,718 1,926 1,164 (820) (1,768) 1,839
2,288 1,072 2,336 410 2,769 3,589 6,232 4,393
$4,265 $2,288 $12,054 $2,336 $3,933 $2,769 $4,464 $6,232
</TABLE>
Page 29
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
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:
Small-Cap Equity Fund. The primary objective of this fund is capital
appreciation. The Fund typically invests in companies with a market
capitalization of less than $1 billion.
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 is 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.
(b) Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Funds' management to make estimates and
assumptions that affect reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements and the results of operations during the reporting period. Actual
results could differ from those estimates.
Page 30
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
(c) 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.
(d) 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. Bond Discount/Premium is
amortized on a straight-line basis over the life of each applicable security.
Other income primarily represents income received, as a member of a class of
plaintiffs, from the favorable settlement of class action suits, which arose in
connection with security holdings of the Funds in prior periods.
(e) 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.
For federal income tax purposes, a net operating loss is offset against net
short-term gains. During the year, Monetta Fund, Inc., Monetta Large-Cap
Equity Fund, Monetta Mid-Cap Equity Fund, and Monetta Small-Cap Equity Fund had
net operating losses of $396,527; $1,798; $55,953; and $11,097; which were
offset against short-term gains. This created a permanent book and tax
difference as these losses have been reclassified from undistributed net
investment income to accumulated net realized gains.
Distributions from net realized gains for book purposes may include short-term
capital gains, which are included as ordinary income for tax purposes.
For the year ended December 31, 1997, the Monetta Fund, Inc., paid capital
gains of $6,588,219, which are taxed at a rate of 28%, and $392,868, which are
taxed at a rate of 20%; Monetta Large-Cap Equity Fund paid capital gains of
$173,032, which are taxed at a rate of 28%, and $102,371, which are taxed at a
rate of 20%; Monetta Mid-Cap Equity Fund paid capital gains of $1,666,014,
which are taxed at a rate of 28%, and $1,366,393, which are taxed at a rate of
20%; Monetta Balanced Fund paid capital gains of $45,619, which are taxed at a
rate of 28%, and $10,262, which are taxed at a rate of 20%; and Monetta
Intermediate Bond Fund paid capital gains of $154, which are taxed at a rate of
20%.
Page 31
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
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 advisor, Monetta
Financial Services, Inc. ("Advisor"). For the twelve months ended December 31,
1997, remuneration required to be paid to all interested director or trustee
has been absorbed by the Advisor. Fees paid to outside Directors or Trustees
have been absorbed by the respective Funds.
Each Fund pays an investment advisory fee to the Advisor, based on that
Fund's individual net assets, payable monthly at the annual rate of 1% for
Monetta Fund, 0.75% for Small-Cap, Mid-Cap, and Large-Cap Equity Funds; 0.40%
for Balanced Fund; 0.35% for Intermediate Bond Fund; and 0.25% for the
Government Money Market Fund. From these fees the Advisor pays all the Fund's
ordinary operating expenses other than the advisory fee, distribution charges
(Trust only) and charges of the Fund's custodian and transfer agent.
Investment advisory fees waived for the twelve months ended December 31, 1997
for the Intermediate Bond Fund were $6,929 of total fees of $11,485.
Investment advisory fees waived and expenses paid by the Advisor through
December 31, 1997 for the Government Money Market Fund were $13,868 and $6,008,
respectively. Additionally, brokerage commissions of $7,750; $750; $50; and
$100 were paid by the Monetta Fund, the Mid-Cap Equity Fund, the Large-Cap
Equity Fund and the Balanced Fund, respectively, to Monetta Investment
Services, L.L.C. (formerly Monetta Brokerage, Inc.) during the twelve months
ended December 31, 1997.
<TABLE>
<CAPTION>
Shares Owned by the Advisor
Shares % of Fund
<S> <C> <C>
Monetta Fund 3,338 0.04
Small-Cap Fund 17,946 9.91
Mid-Cap Fund 9,407 0.64
Large-Cap Fund 12,850 4.03
Balanced Fund 59,914 7.00
Intermediate Bond Fund 78,755 20.92
Government Money Market Fund 512,032 11.47
</TABLE>
Page 32
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
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>
Small- Mid- Large-
Cap Cap Cap Inter. Money
Monetta Equity Equity Equity Balanced Bond Market
(In Thousands) Fund Fund* Fund Fund Fund Fund Fund
<C> <C> <C> <C> <C> <C> <C> <C>
1996 Beginning Shares 23,265 1,188 101 39 350 4,393
Shares sold 1,270 436 123 157 64 15,949
Shares issued upon
dividend reinvestment 0 3 12 6 17 268
Shares redeemed (11,183) (457) (49) (17) (160) (14,378)
Net increase (decrease) in
shares outstanding (9,913) (18) (86) (146) (79) (1,839)
1997 Beginning shares 13,352 0 1,170 187 185 271 6,232
Shares sold 752 190 341 161 723 133 6,338
Shares issued upon
dividend reinvestment 1,289 7 315 42 43 17 252
Shares redeemed (5,933) (16) (363) (71) (95) (44) (8,358)
Net increase (decrease) in
shares outstanding (3,892) 181 293 132 671 106 (1,768)
Ending shares 9,460 181 1,463 319 856 377 4,464
</TABLE>
*Inception date February 1, 1997
4. PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities for the
twelve months ended December 31, 1997, excluding short-term securities
were: Monetta Fund $147,063,889 and $208,690,377; Small-Cap Fund $3,569,614
and $1,388,673; Mid-Cap Fund $25,355,859 and $26,851,639; Large-Cap Fund
$5,182,296 and $4,061,223; Balanced Fund $26,512,475 and $8,876,986; and
Intermediate Bond Fund $6,082,855 and $2,701,992. The cost of purchases
and proceeds from the sales of government securities included in the
preceding numbers were as follows: Balanced Fund $3,603,212 and $1,931,063;
and Intermediate Bond Fund $1,670,617 and $2,020,879.
5. DISTRIBUTION PLAN:
The Trust and its shareholders have adopted a service and distribution
plan (the "Plan") pursuant to Rule 12b-1 under the Investment Company Act
of 1940. The Plan permits the participating Funds to pay certain expenses
associated with the distribution of their shares. Annual fees under the
Plan of up to .25% for the Small-Cap, Mid-Cap, Large-Cap, Balanced, and
Intermediate Funds and up to .10% for the Government Money Market Fund are
accrued daily. The distributor is Funds Distributor, Inc.
Page 33
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
6. FINANCIAL HIGHLIGHTS:
MONETTA FUND
Financial highlights for Monetta Fund for a share of capital stock outstanding
throughout the period is presented below:
1997 1996 1995 1994
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Net asset value at beginning $ 15.842 $ 15.591 $ 14.515 $ 15.539
of period
Net investment income (loss) (.041) (.079) .029 (.026)
Net realized and unrealized gain (loss)
on investments 4.223 .330 4.075 (.938)
Total from investment operations: 4.182 .251 4.104 (.964)
Less:
Distributions from net investment 0 0 (.028) 0
income
Distributions from short-term (1.910) 0 (3.000) (.060)
capital gains, net (a)
Distributions from net realized (.840) 0 0 0
gains
Total distributions (2.750) 0 (3.028) (.060)
Net asset value at end of period $ 17.274 $ 15.842 $ 15.591 $ 14.515
Total return 26.18% 1.60% 28.02% (6.21)%
Ratio to average net assets:
Expenses* 1.48% 1.38% 1.36% 1.35%
Net investment income* (0.24)% (.51)% .18% (.15)%
Avg. comm. paid-per equity
trade (b) $ 0.062 $ 0.063
Portfolio turnover 97.8% 204.8% 272.0% 191.3%
Net assets ($ millions) $ 163.4 $ 211.5 $ 362.7 $ 364.9
</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.
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
(b)Represents the average commissions paid on equity transactions entered into
during the period where commissions were applicable. This disclosure is not
applicable for periods prior to 1996.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except distributions which are based on
shares outstanding at record date.
Page 34
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989 1988
<S> <C> <C> <C> <C> <C>
$15.992 $15.731 $10.963 $10.441 $9.933 $9.649
(.28) .006 .081 .103 .219 .106
.105 .855 6.037 1.106 1.274 2.158
.077 .861 6.118 1.209 1.493 2.264
0 (.006) (.081) (.103) (.219) (.106)
(.475) (.594) (1.208) (.584) (.766) (1.874)
(.055) 0 (.061) 0 0 0
(.530) (.600) (1.350) (.687) (.985) (1.980)
$15.539 $15.992 $15.731 $10.963 $10.441 $9.933
0.49% 5.49% 55.90% 11.37% 15.20% 23.07%
1.38% 1.45% 1.42% 1.50% 1.57% 1.50%
(.19)% .16% .93% 1.09% 2.18% .96%
226.9% 126.6% 153.8% 206.5% 258.4% 170.4%
$524.3 $408.0 $57.1 $6.1 $3.5 $2.6
</TABLE>
Page 35
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
Financial highlights for each Fund of the Trust for a share outstanding
throughout the period are as follows:
Small-Cap
Equity Fund
(Inception 2/1/97)
<TABLE>
<CAPTION>
1997
<S> <C>
Net asset value at beginning of period $ 10.000
Net investment income (loss) (0.148)
Net realized and unrealized gain (loss) on investments 4.878
Total from investment operations 4.730
Less:
Distributions from net investment income 0
Distributions from short-term capital gains, net (a) (.830)
Distributions from net realized gains 0
Total distributions (.830)
Net asset value at end of period $ 13.900
Total return* 47.17%
Ratios to average net assets:
Expenses 1.75%
Net investment income (1.13)%
Avg. comm paid-per equity trade (b) $ 0.056
Portfolio turnover 138.8%
Net assets ($ thousands) $2,518
</TABLE>
* Ratios and total return for the year of inception are calculated from the
date of inception to the end of the period.
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
(b)Represents the average commissions paid on equity transactions entered into
during the period where commissions were applicable. This disclosure is not
applicable for periods prior to 1996.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except distributions which are based on
shares outstanding at record date.
Page 36
Mid-Cap Large-Cap
Equity Fund Equity Fund
<TABLE>
<CAPTION>
3/1/93 9/1/95
Through Through
1997 1996 1995 1994 12/31/93 1997 1996 12/31/95
<C> <C> <C> <C> <C> <C> <C> <C>
$14.814 $11.962 $12.199 $12.537 $10.000 $12.266 $10.571 $10.000
(.045) .044 .059 .071 .006 (.007) .023 .005
4.296 2.852 2.874 .193 3.531 3.250 2.928 .570
4.251 2.896 2.933 .264 3.537 3.243 2.951 .575
0 (.044) (.050) (.069) (.006) 0 (.023) (.004)
(1.452) 0 (2.990) (.533) (.994) (1.113) (1.188) 0
(2.638) 0 (.130) 0 0 (1.037) (.045) 0
(4.090) (.044) (3.170) (.602) (1.000) (2.150) (1.256) (.004)
$14.975 $14.814 $11.962 $12.199 $12.537 $13.359 $12.266 $10.571
29.14% 24.20% 24.54% 2.17% 35.40% 26.64% 28.20% 5.74%
1.26% 1.23% 1.25% 1.30% 1.12% 1.51% 1.51% 0.69%
(.28)% 0.32% 0.44% 0.57% 0.07% (.05)% 0.31% 0.05%
$0.068 $0.066 $0.058 $0.051
137.8% 93.3% 254.4% 210.0% 128.1% 123.2% 152.7% 38.2%
$21,908 $17,338 $14,216 $11,736 $9,841 $4,265 $2,288 $1,072
</TABLE>
Page 37
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
Monetta Trust Continued:
<TABLE>
<CAPTION>
Balanced
Fund
9/1/95
Through
1997 1996 12/31/95
<S> <C> <C> <C>
Net asset value at beginning of period $12.643 $10.605 $10.000
Net investment income .264 .132 .009
Net realized and unrealized gain (loss)
on investments 2.398 2.598 .602
Total from investment operations 2.662 2.730 .611
Less:
Distributions from net investment income (.224) (.132) (.004)
Distributions from short-term
capital gains, net (a) (.927) (.560) (.002)
Distributions from net realized gains (.076) 0 0
Total distributions (1.227) (.692) (.006)
Net asset value at end of period $14.078 $12.643 $10.605
Total return* 21.21% 25.94% 6.16%
Ratios to average net assets:
Expenses - Net 1.02% 1.40% 0.91%
Expenses - Gross (b) N/A N/A N/A
Net investment income 1.88% 1.54% 0.08%
Net investment income - gross (b) N/A N/A N/A
Avg. comm paid-per equity trade (c) $0.060 $0.056
Portfolio turnover 115.9% 117.8% 54.8%
Net assets ($ thousands) $12,054 $2,336 $410
</TABLE>
* Ratios and total return for year of inception are calculated from date of
inception to the end of the period.
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
(b) Ratios of expenses and net income adjusted to reflect investment advisory
fees and charges of the Trust's custodian and transfer agent assumed by the
investment advisor.
(c)Represents the average commissions paid on equity transactions entered into
during the period where commissions were
applicable. This disclosure is not applicable for periods prior to 1996.
The per share rates are calculated using the weighted average number of
shares outstanding during the period, except distributions which are based
on shares outstanding at record date.
Page 38
Intermediate Government Money
Bond Fund Market Fund
<TABLE>
<CAPTION>
3/5/93 3/1/93
Through Through
1997 1996 1995 1994 12/31/93 1997 1996 1995 1994 12/31/93
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$10.208 $10.244 $9.624 $10.345 $10.000 $1.000 $1.000 $1.000 $1.000 $1.000
.599 .612 .655 .589 .357 .050 .049 .059 .040 .023
.278 .019 .740 (.690) .447 0 0 0 0 0
.877 .631 1.395 (.101) .804 .050 .049 .059 .040 .023
(.592) (.612) (.655) (.580) (.357) (.050) (.049) (.059) (.040) (.023)
(.047) (.055) (.120) (.040) (.102) 0 0 0 0 0
(.001) 0 0 0 0 0 0 0 0 0
(.640) (.667) (.775) (.620) (.459) (.050) (.049) (.059) (.040) (.023)
$10.445 $10.208 $10.244 $9.624 $10.345 $1.000 $1.000 $1.000 $1.000 $1.000
8.91% 6.46% 14.84% (1.04)% 8.17% 5.15% 5.06% 5.87% 4.04% 2.21%
0.65% 0.55% 0.27% 0.28% 0.28% 0.39% 0.31% 0.07% 0.0% 0.03%
0.87% 0.85% 0.75% 0.88% 0.75% 0.76% 0.67% 0.59% 0.66% 0.69%
5.82% 5.75% 5.94% 5.94% 4.13% 5.02% 4.95% 5.69% 4.04% 2.32%
5.60% 5.45% 5.46% 5.34% 3.66% 4.65% 4.59% 5.17% 3.39% 1.66%
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
96.7% 28.9% 75.1% 94.5% 32.3% N/A N/A N/A N/A N/A
$3,933 $2,769 $3,589 $3,010 $2,959 $4,464 $6,232 $4,393 $3,315 $1,859
</TABLE>
Page 39
Annual Report
December 31, 1997
MONETTA FAMILY OF MUTUAL FUNDS
Monetta Fund, Inc.
Monetta Small-Cap Equity Fund
Monetta Mid-Cap Equity Fund
Monetta Large-Cap Equity Fund
Monetta Balanced Fund
Monetta Intermediate Bond Fund
Monetta Government Money Market Fund
NO-LOAD
MUTUAL FUNDS
Monetta Family of Mutual Funds
1776-A South Naperville Road
Suite 100
Wheaton, Illinois 60187
1-800-MONETTA (666-3882)
www.monetta.com
Distributed by Funds Distributor, Inc.
