Monetta Family of Mutual Funds
No-Load
Monetta Fund
Monetta Trust
Small-Cap Equity Fund
Mid-Cap Equity Fund
Large-Cap Equity Fund
Balanced Fund
Intermediate Bond Fund
Government Money Market Fund
1-800-MONETTA
www.monetta.com
LOGO APPEARS HERE
Semi-Annual Report
June 30, 1999
Table of Contents
<TABLE>
<CAPTION>
Performance Highlights
<S> <C>
Monetta Fund 4
Monetta Small-Cap Equity Fund 5
Monetta Mid-Cap Equity Fund 6
Monetta Large-Cap Equity Fund 7
Monetta Balanced Fund 8
Monetta Intermediate Bond Fund 9
Monetta Government Money Market 10
Schedule of Investments
Monetta Fund 11
Monetta Small-Cap Equity Fund 13
Monetta Mid-Cap Equity Fund 14
Monetta Large-Cap Equity Fund 15
Monetta Balanced Fund 17
Monetta Intermediate Bond Fund 18
Monetta Government Money Market Fund 19
Financial Statements
Statements of Assets & Liabilities 20
Statements of Operations 21
Statements of Changes in Net Assets 22
Notes to Financial Statements 24
</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 not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
Government Agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to loose money by investing in
the Fund.
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>
Dear Fellow Shareholders June 30, 1999
During the first half of 1999 the gains in the U.S. equity market were fairly
broad based. In June, small and mid-cap securities began to outperform large
- -cap issues which narrowed the year-to-date performance variance. Since year
- -end, large-cap stocks as measured by the S&P 500, Index posted a 12.4%
return versus 6.9% for the S&P 400 Mid-Cap Index and 9.3% for the Small-Cap
Russell 2000 Index.
During the second quarter 1999, interest rates continued their upward trend
on fears of higher inflation and tighter monetary policy. As a result, fixed
income year-to-date performance returns were generally negative. For
example, the 10-year and 30-year treasuries declined 6.4% and 10.7%
respectively.
On June 30, the Federal Reserve's decision to raise short-term
rates by only 25 basis points and shift to a neutral bias was greeted with a
sigh of relief. The financial markets rallied on the news as market pundits
had expected a higher rate increase.
Since year-end there has been significant market rotation between
market sectors and capitalization. In April and May, investors shifted from
growth to value stocks and in June, back toward growth stocks. Although there
has been a great deal of news about valuation concerns in the large-cap area,
these stocks continued to perform well.
Our current expectation is for continued economic growth in the second half
of 1999, albeit at a slower pace. We believe the market's overvaluation,
especially in the large-cap area, will act as a ceiling over significant
upward movement. However, we also expect that strong corporate earnings
will provide support on the downside resulting in a narrow trading range
over the next few months. We expect stock prices to regain their upward
momentum as valuation levels are based on `01 earnings estimates.
There continues to be a great deal of concern over the "Millennium
Bug" and its potential impact on financial markets. There is little doubt that
the foreign effort to prepare for Y2K is lagging behind that of U.S. based
companies. The U.S. industries that appear to be the most prepared are the
financials and telecommunications areas. The energy and utility sectors have
made good progress with healthcare sector bringing up the rear.
No one can predict the magnitude of the Y2K problem or if there will be a
problem at all. But based on implementation studies we have seen, domestic
companies may be considered a "safe haven" for those concerned about Y2K
compliance. This could result in an unexpected year-end rally in the U.S.
markets as there is a "flight to quality" due to Y2K concerns.
Thank you for being a part of the Monetta Family of Mutual Funds.
Best Regards,
Robert S. Bacarella
President and Founder
<Page 3>
Monetta Fund Period ended 06/30/99
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation/Income $50 million - $1 billion $103.8 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
1 Year 5 Year 10 Year
<S> <C> <C> <C>
Monetta Fund (8.5)% 9.1% 10.5%
Russell 2000* 1.5% 15.4% 12.4%
</TABLE>
*Source Frank Russell Company
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Monetta Russell
Equity Fund 2000
<S> <C> <C>
9/89 10474 10675
12/89 10347 10147
3/90 10902 9923
6/90 12192 10305
9/90 9840 7777
12/90 11523 8167
3/91 13658 10596
6/91 14067 10432
9/91 15971 11283
12/91 17964 11929
3/92 18079 12823
6/92 16925 11949
9/92 17428 12291
12/92 18949 14125
3/93 17693 14729
6/93 17824 15050
9/93 19211 16366
12/93 19044 16795
3/94 18541 16350
6/94 17536 15713
9/94 18770 16804
12/94 17860 16490
3/95 19582 17250
6/95 20935 18867
9/95 23543 20730
12/95 22865 21179
3/96 23217 22260
6/96 23937 23374
9/96 23894 23453
12/96 23235 24673
3/97 21548 23397
6/97 25978 27190
9/97 31171 31236
12/97 29319 30190
3/98 32545 33226
6/98 29625 31678
9/98 22663 25295
12/98 26670 29420
3/99 23675 27826
6/99 27099 32152
</TABLE>
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. The graph to the right compares the
change in value of a $10,000 investment in the Monetta Fund and the Russell 2000
Stock Index, with dividend and capital gains reinvested. The Russell 2000
Stock Index is a broad measure representative of the general market.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION:
<S> <C>
Technology 44.8%
Consumer 23.1%
Medical 12.2%
Industrial 11.1%
Financial 2.8%
S/T Investments (A) 6.0%
</TABLE>
(A) Short-Term Investments Net of Other Assets and Liabilities
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Aeroflex, Inc. 4.1%
Consolidated Graphics, Inc. 3.5%
Quanta Services, Inc. 3.5%
D&K Healthcare Resources, Inc. 3.2%
Medicis Pharmaceutical Corp. CL A 2.2%
Total Top 5 Holdings 16.5%
</TABLE>
COMMENTARY
The Monetta Fund posted a return of 1.6% during the first half of 1999, versus
a return of 9.3% for the benchmark Russell 2000 Index. The Russell 2000 Index
was extremely volatile in the first half of 1999. After declining 5.4% in the
first quarter, it jumped 15.6% in the second quarter, besting both the S&P 500
and Dow Jones indices which returned 7.1% and 12.1%, respectively for the same
period.
The underperformance of the Monetta Fund occurred in the first quarter
of 1999. In the second quarter, it posted a 14.5% return which was in line with
the Russell 2000 return of 15.6%. The first quarter variance was due to an
underweighting in internet stocks, which performed extremely well in the index,
and poor performances by five stocks; Brightpoint, Vestcom, Consolidated
Graphics, Medicis Pharmaceutical and VDI Media, the last three of which were
among our top five holdings as of December 31, 1998. In early 1999,
Brightpoint, Vestcom and VDI Media reported poor fourth quarter 1998 results
causing the stocks to be punished severely. Given the poor outlook for 1999,
these stocks were sold. Consolidated Graphics and Medicis Pharmaceutical
continue to perform very well, but the groups in which they reside are
currently out of favor.
A number of holdings posted very strong returns in 1999.
In particular our technology and telecommunications stocks did extremely well,
many of which were up 35% or more. Applied Micro Circuits, TriQuint
SemiConductor and Primus Telecommunications were among the strongest
performers.
Stock trading liquidity continues to be an issue for small-cap
stocks. Investors are seeking the larger more liquid small-cap stocks and
eschewing illiquid stocks at the lower end of the market capitalization
range.
After the miserable relative performance of small-cap versus large-cap
stocks since 1997, it was certainly gratifying to see the small-cap Russell
2000 index outperform the Dow Jones and S&P 500 indices during the second
quarter of 1999. Given the painfully long period of relative underperformance
by the Russell 2000 Index, we feel that small-cap stocks are still very
inexpensive on a number of valuation parameters versus large-cap stocks.
We are encouraged by our Fund's strong second quarter performance and start
to the third quarter.
<Page 4>
Monetta Small-Cap Equity Fund Period ended 06/30/99
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation under $1 billion $3.3million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year 2/1/97
<S> <C> <C>
Monetta Small-Cap Equity Fund 4.2% 21.4%
Russell 2000* 1.5% 10.7%
</TABLE>
*Source Frank Russell Company.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Small-Cap Russell
Measurement Period Fund 2000
<S> <C> <C>
12/96 10000 10000
3/97 9490 9297
6/97 11820 10804
9/97 15089 12412
12/97 14716 11996
3/98 15956 13203
6/98 15317 12588
9/98 12237 10051
12/98 14278 11690
3/99 13223 11057
6/99 15930 12776
</TABLE>
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. The graph 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.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION:
<S> <C>
Technology 35.8%
Consumer 25.2%
Medical 16.2%
Financial 8.4%
Industrial 8.0%
S/T Investments (A) 6.4%
</TABLE>
(A) Short-Term Investments Net of Other Assets and Liabilities
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
D&K Healthcare Resources, Inc. 8.6%
Consolidated Graphics, Inc. 7.5%
Aeroflex, Inc. 7.1%
Medicis Pharmaceutical Corp. - CL A 4.1%
Carey International, Inc. 3.7%
Total Top 5 Holdings 31.0%
</TABLE>
COMMENTARY
The Monetta Small-Cap Equity Fund recorded a strong 11.6% gain during the first
half of 1999, versus a return of 9.3% for the benchmark Russell 2000 Index.
Inception-to-date, the Monetta Small-Cap Equity Fund posted an annualized
return of 21.4%, which significantly outperformed the Russell 2000 benchmark
return of 10.7%.
A number of holdings posted very strong returns in 1999.
Leading the way were our technology and telecommunications stocks which
performed exceptionally well. A number of stocks posted gains of greater than
30% during the first half of 1999, including Aeroflex, Applied Micro Circuits
and Primus Telecommunications Group. It was particularly gratifying to see
Aeroflex perform well as it is one of our larger holdings. Aeroflex supplies
microelectronic circuits to Motorola, Lucent and other high growth large
technology companies.
Detracting from our strong first half performance were
disappointing returns on several health care holdings, including Medicis
Pharmaceutical (down 57%) and D&K Healthcare Resources (down 12%). Medicis
gave back its strong 41% gain in 1998 and D&K has languished despite posting
impressive financial results.
The Small-Cap Equity Fund, like the Monetta Fund, invests in small-cap
equities. Due to the small asset base in the Small-Cap Fund trading
liquidity is not an issue, and we generally hold between 25 and 35
positions in the fund. We expanded our technology and telecommunications
holdings in 1999. Early in the year we felt that these stocks would perform
well due to a bottoming in the semiconductor industry and the explosion in the
telecommunications sector resulting from deregulation and the internet. These
stocks did in fact perform well, helping the fund post strong first half
returns.
In general, small-cap stocks recorded a strong second quarter in 1999
and are still very inexpensive relative to large-cap stocks. We are excited
about the opportunities this investment class offers, and look forward to
reporting our progress to you in the future.
<Page 5>
Monetta Mid-Cap Equity Fund Period ended 06/30/99
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation $1 billion - $5 billion $16.1 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year 5 Year 3/1/93
<S> <C> <C> <C>
Monetta Mid-Cap Equity Fund 4.4% 18.5% 19.3%
S&P 400* 17.2% 22.3% 18.3%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Mid-Cap Russell
Measurement Period Fund 2000
<S> <C> <C>
3/1/93 10000 10000
3/93 11670 10220
6/93 11880 10455
9/93 13120 10978
12/93 13540 11274
3/94 13475 10793
6/94 13109 10399
9/94 13887 11103
12/94 13835 10817
3/95 14835 11692
6/95 16536 12723
9/95 17603 13965
12/95 17233 14165
3/96 18717 15037
6/96 19106 15470
9/96 19855 15920
12/96 21402 16885
3/97 21314 16634
6/97 24277 19085
9/97 27761 22145
12/97 27639 22329
3/98 30239 24787
6/98 29362 24257
9/98 22920 20800
12/98 27408 26472
3/99 27154 24783
6/99 30639 28290
</TABLE>
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. 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.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION:
<S> <C>
Technology 34.5%
Consumer 34.1%
Financial 11.2%
Medical 8.3%
Industrial 2.9%
S/T Investments (A) 9.0%
</TABLE>
(A) short-Term Investments Net of Other Assets and Liabilities
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Qualcomm, Inc. 3.6%
Valassis Communications, Inc. 3.4%
Biogen, Inc. 3.2%
Intimate Brands, Inc. 3.1%
Aflac, Inc. 3.0%
Total Top 5 Holdings 16.3%
</TABLE>
COMMENTARY
The Mid-Cap Fund posted a 12.9% second quarter return, resulting in a year-to-
date investment return of 11.8%. This six month return compares favorably to
the S&P 400 Index return of 6.9%.
Performance was helped by the overweighting in the consumer discretionary and
technology sectors. Specifically, our best performing stocks in the
technology sectors were: Qualcomm, Inc., Verio, Inc., At Home Corporation,
and Echostar Communications. In the retail area our top performers included:
Intimate Brands, Inc., Abercrobmie & Fitch Co., and Tiffany & Co. Network
Associates, Inc. was our biggest disappointment as growth rates fell below
expectations and was eliminated from the Fund.
We were very active in adding new companies to the Fund as we increased sector
weighting in the technology and consumer areas. New additions included: Exodus
Communications, Inc. which provides internet systems and network management
capabilities to customers and Black & Decker Corp., a manufacturer of power
tools and accessories. We also trimmed positions in the internet area due to
valuation concerns and emphasized investments in those companies with high
recurring revenue components such as Cintas Corp. and Outdoor Systems, Inc.
Infinity Broadcasting recently announced the buy out of Outdoor Systems, Inc.
in a stock transaction. At current price levels we also favor the brokerage
firms such as Paine Webber Group, Donaldson Lufkin Jennette, Inc., and E-Trade
Group.
There continues to be a large valuation disparity between the large-cap
stocks and the rest of the market. Many mid-cap stocks are trading at
attractive valuations and also are liquid enough to attract institutional
ownership. We continue to be focused on identifying and investing in mid-cap
stocks with strong growth characteristics and positive earnings momentum.
<Page 6>
Monetta Large-Cap Equity Fund Period ended 06/30/99
Investment Objective: Market Capitalization Range: Total Net Assets:
Capital Appreciation $5 billion + $6.5 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year 3 Year 9/1/95
<S> <C> <C> <C>
Monetta Large-Cap Equity Fund 27.1% 24.3% 24.1%
S&P 500* 22.8% 29.1% 28.5%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Large-Cap S&P 500
Fund
<S> <C> <C>
9/95 10000 10482
12/95 10574 11105
3/96 11344 11701
6/96 11923 12225
9/96 12864 12603
12/96 13555 13653
3/97 13842 14020
6/97 15621 16465
9/97 17333 17699
12/97 17167 18207
3/98 18413 20745
6/98 18008 21433
9/98 14165 19307
12/98 18716 23441
3/99 21543 24608
6/99 22880 26343
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. 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.
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Consumer 31.8%
Technology 29.5%
Financial 17.7%
Industrial 11.9%
Medical 5.2%
S/T Investments (A) 3.9%
</TABLE>
(A) Short-Term Investments Net of Other Assets and Liabilities
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Int'l Business Machines, Corp. 4.0%
FDX Corp. 3.3%
Clear Channel Communications 3.2%
Lucent Technologies, Inc. 3.1%
Kohl's Corp. 3.0%
Total Top 5 Holdings 16.6%
</TABLE>
COMMENTARY
The Large-Cap Fund was up 6.2% during the second quarter, increasing the year-
to-date investment performance to 22.3%. This significantly outperformed the
S&P 500 Index, which was up 12.4% year-to-date.
Performance was helped by our overweighted position in the technology
sectors. Technology holdings included: Cisco Systems, EMC Corp., IBM, MCI
Worldcom, and Nextel Communications.
The largest contributors to performance since year-end were: American Online,
Inc., and Yahoo, Inc., benefiting from the strong growth of the internet area;
Cisco Systems, Inc. driven by new products in the volume voice business and
high-end ISP market; and Clear Channel Communication, Inc. a leading global
media company.
The two weakest performing stocks were in the healthcare area, Watson
Pharmaceuticals, Inc. and Cardinal Health, Inc. Both securities were sold
due to company specific issues that we believe could limit near term price
appreciation.
Securities added to the portfolio were primarily in the energy
healthcare and consumer discretionary industries. These included: Exxon Corp.
and Halliburton in the oil sector, Amgen, Inc. and Pfizer, Inc. in the
healthcare area, and a few defensive issues such as Carnival Corp., a cruise
line and Mc Donald's Corp., one of the largest fast-food restaurant chains.
The Fund continues to be focused on large-cap growth stocks which we expect to
benefit from moderate economic growth. These large-cap securities may also be
a primary beneficiary of the current Y2K concerns. Investors worried about the
Y2K compliance may flock to the "safe haven" of U.S. companies that appear to
be most prepared to handle the "Millennium Bug".
<Page 7>
Monetta Balanced Fund Period ended 06/30/99
Investment Objective: Market Capitalization Range: Average Maturity:
Capital Appreciation $50 million 8.2 Years
Total Net Assets:
$8.4 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year 3 Year 9/1/95
<S> <C> <C> <C>
Monetta Balanced Fund 16.9% 18.4% 19.5%
S&P 500* 22.8% 29.1% 28.5%
Lehman Gov't/Corp. Bond* 2.7% 7.2% 6.6%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Balanced S&P 500* Gov't/Corp.
Fund Bond*
<S> <C> <C> <C>
9/95 10000 10482 10000
12/95 10616 11105 10573
3/96 11131 11701 10326
6/96 11931 12225 10374
9/96 12547 12603 10557
12/96 13369 13653 10880
3/97 13358 14020 10786
6/97 14642 16465 11179
9/97 16431 17699 11570
12/97 16205 18207 11941
3/98 17321 20745 12123
6/98 16923 21433 12351
9/98 15004 19307 12962
12/98 17602 23441 12979
3/99 18952 24608 12823
6/99 19782 26343 12682
</TABLE>
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. The graph above to the right compares
the change in value of a $10,000 investment in the Monetta Balanced Fund to
the S&P 500 Index and the Lehman Gov't/Corp. Bond with dividends and capital
gains reinvested.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Technology 26.8%
Consumer 20.2%
Financial 8.1%
Industrial 4.9%
Medical 1.1%
Fixed Income (A) 38.9%
</TABLE>
(A) Fixed Income Net of Other Assets and Liabilities
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Int'l Business Machine Corp. 6.2%
Citigroup, Inc. 4.3%
MCI Worldcom, Inc. 4.1%
Clear Channel Communications 4.1%
Lucent Technologies, Inc. 4.0%
Total Top 5 Holdings 22.7%
</TABLE>
COMMENTARY
During the second quarter, the Balanced Fund was up 4.4%, increasing the year-
to-date investment performance to 12.4%. All of the Fund's appreciation was
from the equity holdings as the fixed income holdings declined due to concerns
over higher inflationary expectations.
At June 30, approximately 61% of the Fund was invested in common stocks, 34%
in bonds and 5% in cash equivalents. In the equity area the Fund is heavily
weighted toward the larger cap growth stocks which represent approximately
90% of the stock portfolio.
Since year-end the largest contributors to performance were IBM, which
reported a positive 2nd quarter earnings surprise and higher gross margins;
Lucent, which announced the purchase of Ascend Communications, Inc., an
accretive acquisition; and Best Buy, which benefited from a robust digital
product cycle and favorable competitive environment.
The fixed income portion was down modestly since year- end as our high
quality, intermediate term securities declined with rising interest rates.
Trading activity during the quarter was moderate. Mc Donald's
Corp. was a new purchase, the Citigroup, Inc. position was increased and
American Online, Inc. was trimmed to realized profits.
We continue to focus on quality growth companies, leaders in their respective
industries with solid competitive advantages. The fixed income strategy is
to remain positioned in high quality corporate bond sector and primarily in
intermediate term maturities.
<Page 8>
Monetta Intermediate Bond Fund Period ended 06/30/99
Investment Objective: 30-Day SEC Yield: Average Maturity:
Capital Appreciation/Income 6.18% 5.1 Years
Total Net Assets:
$10.8 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year 5 Year 3/1/93
<S> <C> <C> <C>
Monetta Intermediate Bond Fund 4.23% 7.95% 7.04%
Lehman Gov't/Corp
Interm. Bond Index* 4.19% 7.04% 5.90%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Monetta Intermediate Lehman Gov't/Corp. Int.
Measurement Period Bond Fund Bond Index*
<S> <C> <C>
3/1/93 10000 10007
3/93 10000 10028
6/93 10399 10255
9/93 10732 10486
12/93 10817 10504
3/94 10585 10291
6/94 10494 10229
9/94 10613 10313
12/94 10705 10302
3/95 11270 10754
6/95 11866 11292
9/95 12046 11479
12/95 12282 11883
3/96 12245 11784
6/96 12428 11859
9/96 12702 12068
12/96 13074 12364
3/97 13041 12350
6/97 13485 12715
9/97 13908 13058
12/97 14238 13338
3/98 14443 13546
6/98 14748 13800
9/98 15382 14420
12/98 15431 14463
3/99 15548 14436
6/99 15371 14378
</TABLE>
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. The graph above 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.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Corporate Bonds 77.2%
U.S. Treasuries 6.9%
Government Agencies 6.9%
Government Obligations 0.1%
S/T Investments - Net (A) 8.9%
(A) Short-Term Investments Net of Other Assets and Liabilities
MATURITY PROFILE:
</TABLE>
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
1 Year or Less 11.0%
1-3 Years 10.9%
4-6 Years 51.4%
7-10 Years 22.0%
Over 10 Years 4.7%
Total 100.0%
</TABLE>
COMMENTARY
The Monetta Intermediate Bond Fund declined (0.39%) for the six month period
ending June 30, 1999 and gained 4.23% over the twelve month period ending June
30, 1999. This compares with the Lipper Intermediate Investment Grade Debt
Funds category return of (1.60%) and 2.00 % respectively. For the five years
ending June 30, 1999, the Fund generated a cumulative return of 46.64% ranking
9th in its Lipper category out of 119 funds. For one-year the Fund also ranked
9th out of 254 funds.
During the first 6 months of the year there were no major changes to the
investment strategy. The Fund continues to minimize interest rate risk
versus the Lehman Intermediate Government Corporate Benchmark while
overweighting the higher yielding sectors of the corporate bond market.
The first half of 1999 was a challenging one for the fixed income markets.
Since year end, U.S. Treasury yields increased by 90-114 basis points across the
maturity curve. The Federal Reserve raised the discount rate 25 basis points
for the first time since 1997 to counteract inflation fears caused by a strong
domestic economy and optimism for a global rebound.Corporate bonds outperformed
nicely in the first quarter as spreads tightened against comparable Treasuries.
Unfortunately, concerns over Fed tightening and a heavy supply of new issues
caused corporate spreads to widen and much of the first quarter gains were lost
in the second quarter.
Our outlook for the second half of 1999 is cautious near term but positive
longer term. The Fed will cast a heavy shadow until the economy begins to
show signs of slowing and corporate bond issuance subsides. We are
optimistic that the Fed is becoming more comfortable with a higher economic
growth rate as productivity gains continue to damper inflation expectations.
The supply issue is global but should resolve itself by the beginning of the
fourth quarter as corporations scramble to complete their financing
requirements early to avoid having to deal with potential Y2K problems in
late 1999.
We believe that the Fund performance will benefit from a slower economy and
moderate corporate bond supply as we approach year-end.
<Page 9>
Monetta Government Money Market Fund Period ended 06/30/99
Investment Objective: 7-Day Yield: Average Days to Maturity:
Income and Capital Preservation 4.60% 36 Days
Total Net Assets:
$4.4 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year 5 Year 3/1/93
<S> <C> <C> <C>
Monetta Government
Money Market Fund 4.99% 5.20% 4.74%
Lipper US Gov't Money
Market Funds Avg.* 4.51% 4.86% 4.41%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Money Market Lipper Average
<S> <C> <C>
3/1/93 10000 10000
3/93 10013 10023
6/93 10072 10088
9/93 10147 10154
12/93 10224 10222
3/94 10301 10290
6/94 10396 10374
9/94 10507 10475
12/94 10637 10597
3/95 10788 10738
6/95 10950 10885
9/95 11110 11030
12/95 11262 11174
3/96 11401 11309
6/96 11539 11440
9/96 11683 11579
12/96 11832 11711
3/97 11977 11846
6/97 12126 11988
9/97 12281 12135
12/97 12441 12284
3/98 12599 12433
6/98 12760 12585
9/98 12927 12738
12/98 13091 12894
3/99 13244 13045
6/99 13397 13180
</TABLE>
Past performance is no guarantee of future results. **Total returns are net
of advisory and distribution fees waived and voluntary absorption of all or
part of the Fund's operating expenses by the Advisor. Had fees not been
waived, the 7-day SEC yield would have been 4.25%, versus 4.60% on June 30,
1999. Aninvestment 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.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Government Agencies 98.9%
S/T Investments Net (A) 1.1%
</TABLE>
(A) Short-Term Investments Net of Other Assets and Liabilities
ALLOCATION:
<TABLE>
<CAPTION>
<S> <C>
Government Agencies 98.9%
S/T Investments Net (A) 1.1%
Total 100.0%
</TABLE>
COMMENTARY
The Government Money Market Fund posted an impressive return of 2.33% for the
first six months of 1999, increasing the one-year return to 4.99%. The returns
compare favorably to the Lipper U.S. Government Money Market Funds category,
ranking the fund 1st of 118 funds in this category for the year ended June 30,
1999, and ranked 5th of 87 Funds for the five-year return.
Based on yield spreads, we continued to overweight the Agency Discount Note
sector versus Government Bills. Also, the average maturity of the fund
remains short, less than 40 days, in anticipation of tightening Federal
Reserve Monetary Policy.
The Fed 25 basis point increase in the discount rate on June 30 was a
pleasant surprise. Most investors were expecting a higher increase in rates
due to concerns over accelerating economic growth. The Fed has not committed
to further tightening, but to quote Mr. Greenspan, "the FOMC did not believe
its recent modest tightening would put risks of inflation going forward
completely into balance". This suggests higher interest rates in our future.
We remain concerned over the near term direction of interest rates and
therefore intend to maintain a defensive position. As rates increase we will
extend maturities, monitoring closely the yield spread relationship between
Treasury Bills and Agency Notes.
The Monetta Government Money Market Fund is the most conservative
of the Monetta Family of Mutual Funds. Its primary objectives are the
preservation of capital and liquidity. The investment emphasis is on stability
and conservatism.
<Page 10>
Schedule of Investments (unaudited) June 30, 1999
MONETTA FUND
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 94.0%
<S> <C>
Consumer Related - 23.1% $23,951
Broadcasting/Cable TV - 5.0%
*15,000 Adelphia Communications Corp. - CL A $ 954
*40,000 CSG Systems Int'l, Inc. 1,048
*32,000 Metro Networks, Inc. 1,708
*16,000 Pegasus Communications Corp. 631
*13,000 United Int'l Holdings - CL A 879
5,220
Food Processing - 0.4%
*20,000 Celestial Seasonings, Inc. 430
Recreation/Entertainment - 1.1%
*40,000 Avis Rent A Car, Inc. 1,165
Restaurants/Lodging - 1.1%
*30,000 Outback Steakhouse, Inc. 1,179
Retail Manufacturers & Distribution - 2.4%
*105,000 Home Products Int'l, Inc. 892
*58,000 Performance Food Group Co. 1,577
2,469
Retail Trades - 2.3%
*29,000 Ames Department Stores, Inc. 1,323
*20,000 99 Cents Only Stores 999
2,322
Miscellaneous - 10.8%
*35,000 AHL Services, Inc. 873
*72,800 Consolidated Graphics, Inc. 3,640
*80,000 FirstService Corp. 1,220
*50,000 F.Y.I., Inc. 1,569
*43,500 MAXIMUS, Inc. 1,251
*15,000 QRS Corp. 1,170
*37,500 Valassis Communications, Inc. 1,373
*20,000 Vestcom Int'l, Inc. 70
11,166
Industrial Related - 11.1% $11,497
Energy Resources & Services - 1.0%
35,000 Diamond Offshore Drilling, Inc. $993
Industrial & Electronics Products - 3.9%
10,000 CTS Corp. 700
*17,000 Kulicke & Soffa Industries, Inc. 456
63,000 Spartech Corp. 1,992
*25,000 SPS Technologies, Inc. 938
4,086
Transportation - 4.4%
*23,000 CSK Auto Corp. 621
*75,000 Carey Int'l, Inc. 1,847
77,000 Expeditors Int'l of Washington,Inc. 2,098
4,566
Miscellaneous - 1.8%
10,000 Ball Corp. 422
*80,000 Waste Industries, Inc. 1,430
1,852
Financial Related - 2.8% $2,939
Financial Services - 2.8%
*10,000 The Bisys Group, Inc. $ 585
17,000 Factset Research Systems, Inc. 963
*33,000 Jones Lang LaSalle, Inc. 984
10,000 Metris Companies, Inc. 407
2,939
Medical Related - 12.2% $12,611
Pharmaceuticals - 8.7%
30,000 ALPharma, Inc. - CL A $1,067
137,900 D & K Healthcare Resources, Inc. 3,292
39,000 Jones Pharma, Inc. 1,536
*12,000 Medimmune, Inc. 813
*90,000 Medicis Pharmaceutical Corp. - CL A 2,284
8,992
Physician Services - 1.9%
*45,000 MedQuist, Inc. 1,969
Miscellaneous - 1.6%
*20,000 FPIC Insurance Group, Inc. 970
*25,000 Sylvan Learning Systems, Inc. 680
1,650
</TABLE>
<Page 11>
Schedule of Investments (unaudited) June 30, 1999
MONETTA FUND (Con't)
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
Technology Related - 44.8% $46,553
Computer Software and Systems - 5.6%
*57,500 Apex, Inc. $41,179
*30,000 M-Systems Flash Disk Pioneers Ltd. 181
*25,000 National Computer Systems, Inc. 844
*60,000 Symantec Corp. 1,530
*15,000 3DFX Interactive, Inc. 234
*40,000 WebTrends Corp. 1,845
5,813
Computer/Office Equipment - 0.6%
*30,000 ScanSource, Inc. 649
Semiconductors - 11.7%
*20,000 Applied Micro Circuits Corp. 1,645
*215,000 Aeroflex, Inc. 4,246
*22,200 ATMI, Inc. 660
*21,000 Novellus Systems, Inc. 1,433
*14,000 Qlogic Corp. 1,848
*18,000 TriQuint SemiConductor, Inc. 1,023
*20,000 Vitesse Semiconductor Corp. 1,349
12,204
Telecommunications/Equipment - 14.2%
*24,000 Antec Corp. 770
*40,000 Dycom Industries, Inc. 2,240
*18,800 E-TEK Dynamics, Inc. 894
*40,000 Genesys TelecommunicationsLabs, Inc. 1,000
*13,200 Hyperion Telecommunications,Inc. - CL A 248
*10,000 Int'l Telecommunication Systems, Inc. 160
*35,000 Omnipoint Corp. 1,013
*5,000 Polycom, Inc. 195
*44,000 Primus Telecommunications Group, Inc. 987
*35,000 Powertel, Inc. 1,046
*82,200 Quanta Services, Inc. 3,617
*10,000 Sawtek, Inc. 459
*31,250 Superior Telecom, Inc. 781
*33,000 Time Warner Telecom, Inc. - CL A 957
*12,000 Excel Switching Corp. 359
14,726
Miscellaneous - 12.7%
*35,000 Abovenet Communications, Inc. 1,413
*55,000 Acxiom Corp. 1,372
*20,000 Black Box Corp. 1,003
*29,000 C-Cube MicroSystems, Inc. 919
*20,000 Earthlink Network, Inc. 1,229
*30,000 Entrust Technologies, Inc. 997
*15,000 Metzler Group, Inc. 414
*15,000 Pacific Internet Ltd. 711
*15,000 Catalina Marketing Corp. 1,380
*30,000 Sanmina Corp. 2,276
*20,000 Sterling Commerce, Inc. 730
*20,000 Sportsline USA, Inc. 717
13,161
Total Common Stocks
(Cost $77,666) (a) 97,551
Variable Demand Notes - 2.1%
2,199,400 Firstar Bank Milwaukee,
N.A. - 4.73% 2,199
Commercial Paper - 2.9%
3,000,000 Albertson's - 5.02%
Due 07/28/99 2,989
Total Short-Term Investments 5,188
Total Investments - 99.0%
(Cost $82,854) (a) 102,739
Other Assets Less Liabilities - 1.0% 1,082
Net Assets - 100.0% $103,821
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $23,490, and aggregate gross unrealized
depreciation is $3,605, resulting in net unrealized appreciation of $19,885
(in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<Page 12>
Schedule of Investments (unaudited) June 30, 1999
MONETTA SMALL-CAP EQUITY FUND
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 93.6%
<S> <C>
Consumer Related - 25.2% $841
Broadcasting/Cable TV - 4.0%
*1,000 Jones Intercable, Inc. - CL A $ 49
*1,000 Metro Networks, Inc. 53
*800 Pegasus Communications Corp. 32
134
Recreation/Entertainment - 2.9%
*2,000 Avis Rent A Car, Inc. 58
*600 SFX Entertainment, Inc. - CL A 40
98
Retail Trades - 6.6%
*2,500 Ames Department Stores, Inc. 114
*2,500 Coach USA, Inc. 105
219
Miscellaneous 11.7%
*2,500 AHL Services, Inc. 62
*5,000 Consolidated Graphics,Inc. 250
*1,000 QRS Corp. 78
390
Industrial Related - 8.0% $268
Industrial & Electronics Products - 1.9%
2,000 Spartech Corp. $ 63
Transportation - 6.1%
*5,000 Carey Int'l, Inc. 123
3,000 Expeditors Int'l of Washington, Inc. 82
205
Financial Related - 8.4% $280
Financial Services - 8.4%
*1,300 The Bisys Group, Inc. $ 76
1,000 Factset Research Systems, Inc. 57
2,000 Metris Companies, Inc. 81
*4,000 Trammell Crow Co. 66
280
Medical Related - 16.2% $538
Pharmaceuticals - 12.7%
12,000 D & K Healthcare Resources, Inc. $287
*5,400 Medicis Pharmaceutical Corp. - CL A 137
424
Physician Services - 2.0%
*1,500 MedQuist, Inc. 66
Miscellaneous - 1.5%
*1,000 FPIC Insurance Group, Inc. 48
Technology Related - 35.8% $1,194
Computer Software and Systems - 5.9%
*1,000 Citrix Systems, Inc. $ 57
1,900 National Computer Systems, Inc. 64
*3,000 Symantec Corp. 76
197
Semiconductors - 9.6%
*1,000 Applied Micro Circuits Corp. 82
*12,000 Aeroflex, Inc. 237
319
Telecommunications/Equipment 16.1%
*1,000 E-TEK Dynamics, Inc. 48
*2,000 Genesys TelecommunicationsLabs, Inc. 50
*600 Gilat Satellite Networks Ltd. 31
*4,000 HyperionInc. - CL A 75
*3,000 Omnipoint Corp. 87
*5,000 Primus Telecommunications Group,Inc. 112
*1,500 Powertel, Inc. 45
*2,000 Quanta Services, Inc. 88
536
Miscellaneous - 4.2%
*2,000 Acxiom Corp. 50
*2,200 Metzler Group, Inc. 61
*1,875 Tetra Tech, Inc. 31
142
Total Common Stock (Cost $2,378) (a) 3,121
Variable Demand Notes - 9.3%
143,800 Firstar Bank Milwaukee,
N.A. - 4.73% 144
77,400 Pitney Bowes - 4.67% 77
89,200 Warner Lambert - 4.70% 89
310
Total Investments - 102.9% (Cost $2,688) (a) 3,431
Other Assets Less Liabilities (2.9)% (98)
Net Assets - 100% $3,333
</TABLE>
SMALL-CAP FOOTNOTE:
(a) Cost is identical for book and tax purposes; the
aggregate gross unrealized appreciation is $762, and aggregate gross
unrealized depreciation is $19, resulting in net unrealized appreciation of
$743 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<Page 13>
Schedule of Investments (unaudited) June 30, 1999
MONETTA MID-CAP EQUITY FUND
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCK - 91.0%
<S> <C>
Consumer Related - 34.1% $5,479
Broadcasting/Cable TV - 4.1%
*3,000 Echostar Communications Corp. - CL A $ 460
4,000 Media General, Inc. - CL A 204
664
Recreation/Entertainment - 2.3%
7,000 Galileo Int'l, Inc. 374
Restaurants/Lodging - 4.0%
*5,000 Brinker Int'l, Inc. 136
*7,500 Outback Steakhouse, Inc. 295
*5,000 U.S. Foodservice 213
644
Retail Manufacturers & Distribution - 1.6%
4,000 Black & Decker Corp. 253
Retail Trades - 16.3%
*8,000 Abercrombie & Fitch Co. CL A 384
*4,000 Bed Bath & Beyond, Inc. 154
*4,000 Best Buy Company, Inc. 270
*7,000 Dollar Tree Stores, Inc. 308
6,000 Family Dollar Stores, Inc. 144
8,000 Flowers Industries, Inc. 174
10,500 Intimate Brands, Inc. 497
*7,500 Office Depot, Inc. 166
*5,000 Saks, Inc. 144
1,200 Tiffany & Co. 116
*3,500 Tommy Hilfiger Corp. 257
2,614
Miscellaneous - 5.8%
*5,000 American Power Conversion Corp. 101
2,000 Cintas Corp. 134
*4,000 Outdoor Systems, Inc. 146
*15,000 Valassis Communications, Inc. 549
930
Industrial Related - 2.9% $469
Energy Resources & Services - 1.7%
2,000 Noble Affiliates, Inc. $ 56
2,000 Transocean Offshore, Inc. 53
*2,000 Smith Int'l, Inc. 87
*2,000 Weatherford Int'l, Inc. 73
269
Industrial & Electronics Products - 1.2%
*3,000 Solectron Corp. 200
Financial Related - 11.2% $1,806
Financial Services - 11.2%
10,000 Aflac, Inc. $ 479
10,000 Conseco, Inc. 304
5,000 Charter One Financial, Inc. 139
5,000 CityNational Corp. 187
3,000 Donaldson Lufkin & Jenrette, Inc. 181
*10,500 Fiserv, Inc. 329
4,000 Paine Webber Group, Inc. 187
1,806
Medical Related - 8.3% $1,335
Medical Supplies - 0.0%
*895 Genzyme Surgical Products $ 4
Medical Technology - 1.5%
*5,000 Centocor, Inc. 233
Pharmaceuticals 5.3%
*8,000 Biogen, Inc. 515
*6,000 Elan Corp. PLC 166
*5,000 Watson Pharmaceuticals, Inc. 175
856
Physician Services - 1.5%
*5,000 Genzyme Corp. 242
Technology Related - 34.5% $5,535
Computer Software and Systems - 13.6%
*8,000 Ceridian Corp. $ 262
*8,000 Citrix Systems, Inc. 452
*4,000 Electronic Arts, Inc. 217
*2,000 NCR Corp. 98
*10,000 Novell, Inc. 265
*6,000 PSINet, Inc. 262
*4,000 Synopsys, Inc. 221
*5,000 Unisys Corp. 195
*3,000 Verio, Inc. 208
2,180
</TABLE>
<Page 14>
Schedule of Investments (unaudited) June 30, 1999
MONETTA MID-CAP EQUITY FUND (Con't)
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
Semiconductors - 2.7%
*6,000 Altera Corp. 221
*3,000 Teradyne, Inc. 215
436
Telecommunications/Equipment - 9.0%
*6,000 Comverse Technology, Inc. 453
*4,000 Qualcomm, Inc. 574
*6,000 QwestCommunications Int'l, Inc. 199
6,000 Symbol Technologies, Inc. 221
1,447
Miscellaneous - 9.2%
*6,000 E*Trade Group, Inc. 240
*3,000 ExodusCommunications, Inc 360
*3,000 Lycos, Inc. 276
4,000 Linear Technology Corp. 269
*10,000 Snyder Communications, Inc. 327
1,472
Total Common Stocks
(Cost $11,382) (a) 14,624
Variable Demand Notes - 7.1%
413,700 American Family - 4.70% 414
734,200 Firstar Bank Milwaukee,
N.A. - 4.73% 734
1,148
Total Investments - 98.1%
(Cost $12,530) (a) 15,772
Other Assets Less Liabilities - 1.9% 300
Net Assets - 100.0% $16,072
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $3,435, and aggregate gross unrealized depreciation is $193,
resulting in net unrealized appreciation of $3,242 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
MONETTA LARGE-CAP EQUITY FUND
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
CONSUMER STOCKS - 96.1%
Consumer Related - 31.8% $2,074
Broadcasting/Cable TV - 7.4%
*3,000 CBS Corp. $ 130
3,000 Clear Channel Communications, Inc. 207
2,000 Time Warner, Inc. 147
484
Recreation/Entertainment 2.2%
3,000 Carnival Corp. 146
Restaurants/Lodging - 1.9%
*3,000 McDonald's Corp. 124
Retail Trades - 16.0%
*2,000 Best Buy Co., Inc. 135
2,000 Dayton Hudson Corp. 130
3,000 Gap, Inc. 151
2,500 Home Depot, Inc. 161
*2,500 Kohls Corp. 193
2,000 Nike, Inc. - CL B 127
*3,000 Wal Mart Stores, Inc. 145
1,042
Miscellaneous - 4.3%
1,200 General Electric Co. 136
1,500 Tyco Int'l Ltd. 142
278
Industrial Related - 11.9% $774
Chemicals - 1.2%
2,000 Monsanto Corp. $79
Energy Resources & Services - 5.7%
2,000 Halliburton Co. 91
2,500 Schlumberger Ltd. 159
1,500 Exxon Corp. 116
366
Transportation - 3.3%
*4,000 FDX Corp. 217
</TABLE>
<Page 15>
Schedule of Investments (unaudited) June 30, 1999
MONETTA LARGE-CAP EQUITY FUND (Con't)
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
Miscellaneous - 1.7%
*2,000 General Motors - CL H 112
Financial Related - 17.7% $1,154
Financial Services - 17.7%
1,000 American Int'l Group, Inc. $ 117
1,200 American Express Co. 156
3,750 Citigroup, Inc. 178
*1,000 The Goldman Sachs Group, Inc. 72
2,000 Merrill Lynch & Co., Inc. 160
2,000 Banc One Corp. 119
2,000 Providian Financial Corp. 187
1,500 The CharlesSchwab Corp. 165
1,154
Medical Related - 5.2% $338
Pharmaceuticals - 5.2%
*2,000 Amgen, Inc. $ 122
1,000 Pfizer, Inc. 110
2,000 Schering-Plough Corp. 106
338
Technology - 29.5% $1,921
Computer Software and Systems - 11.3%
*1,000 America Online, Inc. $ 111
*2,000 Cisco Systems, Inc. 129
2,000 EMC Corp. 110
2,000 Int'l Business Machines Corp. 258
*1,400 Microsoft Corp. 126
734
Semiconductors - 1.8%
2,000 Intel Corp. 119
Telecommunications/Equipment - 13.8%
3,000 Lucent Technologies, Inc. 202
*1,500 Nextlink Communications, Inc. 112
*2,500 Nextel Communications, Inc. - CL A 125
2,500 AT & T Corp. 140
1,000 Texas Instruments, Inc. 145
*2,000 MCI Worldcom, Inc. 172
896
Miscellaneous - 2.6%
*1,000 Yahoo! Inc. 172
Total Common Stocks
(Cost $4,818)(a) $6,261
Variable Demand Notes - 4.5%
6,200 American Family - 4.70% 6
289,300 Firstar Bank Milwaukee,
N.A. - 4.73% 289
295
Total Investments 100.6%
(cost $5,113) (a) 6,556
Other Assets Less Liabilities (0.6%) (42)
Net Assets - 100% $6,514
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $1,516, and aggregate gross unrealized depreciation is $73 ,
resulting in net unrealized appreciation of $1,443 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security
<Page 16>
Schedule of Investments (unaudited) June 30, 1999
MONETTA BALANCED FUND
Shares or Quoted
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 61.1%
<C> <C>
Consumer Related - 20.2% $1,692
Broadcasting/Cable TV - 4.1%
5,000 Clear Channel Communications,Inc. $ 345
Restaurants/Lodging - 1.5%
3,000 McDonald's Corp. 124
Retail Trades - 14.6%
*3,000 Best Buy Co., Inc. 203
4,000 Dayton Hudson Corp. 260
3,000 Home Depot, Inc. 193
2,000 Nike, Inc. - CL B 127
*4,000 Starbucks Corp. 150
6,000 Wal Mart Stores, Inc. 290
1,223
Industrial Related - 4.9% $408
Energy Resources & Services - 2.3%
3,000 Schlumberger Ltd. $191
Transportation - 2.6%
*4,000 FDX Corp. 217
Financial Related - 8.1% $676
Financial Services - 8.1%
7,500 Citigroup, Inc. $356
4,000 Merrill Lynch & Co., Inc. 320
676
Medical Related - 1.1% $95
Pharmaceuticals -1.1%
*4,000 D & K Healthcare Resources, Inc. $95
Technology Related - 26.8% $2,245
Computer Software and Systems - 10.3%
*1,500 America Online, Inc. $ 166
4,000 Int'l Business Machines Corp. 517
*2,000 Microsoft Corp. 180
863
Semiconductors - 4.7%
*8,000 Aeroflex, Inc. 158
4,000 Intel Corp. 238
396
Telecommunications/Equipment - 9.7%
5,000 Lucent Technologies, Inc. 337
*4,000 Qwest Communications Int'l, Inc. 132
*4,000 MCI Worldcom, Inc. 345
814
Miscellaneous - 2.1%
*1,000 Yahoo! Inc. 172
Total Common Stocks
(Cost $3,385) (a) $5,116
Variable Demand Notes - 5.2%
134,700 American Family - 4.70% 135
298,700 Firstar Bank Milwaukee,
N.A. 4.73% 299
434
Corporate Bonds - 29.0%
300,000 Bank United Corp. 301
8.875% Due 05-01-07
300,000 Chase Manhattan Corp. 322
9.750% Due 11-01-01
300,000 East Coast Power LLC 275
7.066% Due 03-31-12
375,000 Eli Lilly & Co. 403
8.375% Due 02-07-05
300,000 Merck & Co., Inc. 303
6.750% Due 09-19-05
300,000 US Central Credit Union 295
6.000% Due 05-21-03
175,000 Tyco Int'l Group 163
6.125% Due 01-15-09
50,000 Worldcom, Inc. 362
7.550% Due 04-01-04
2,424
Mortgage Obligations - 4.7%
400,000 Green Tree Home Imprv. Mortg.
6.780% Due 06-15-28 397
Total Investments - 100%
(Cost $6,737) (a) 8,371
Other Assets Less Liabilities --
Net Assets - 100% $8,371
</TABLE>
BALANCED FUND FOOT NOTE:
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $1,737, and aggregate gross unrealized
depreciation is $103, resulting in net unrealized appreciation of $1,634
(in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<Page 17>
Schedule of Investments (unaudited) June 30, 1999
MONETTA INTERMEDIATE BOND FUND
Shares or
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
Treasury Notes - 6.9%
200,000 5.5% 4/15/00 $ 200
175,000 8.875% 05/15/00 180
350,000 6.00% 07/31/02 354
734
Corporate Bonds - 77.2%
340,000 Pacific Gas & Electric
8.75% 01/01/01 352
450,000 Chase Manhattan Corp.
9.75% 11/01/01 483
350,000 Cox Enterprises, Inc.
6.625% 06/14/02 350
100,000 Webb (DEL E.)
9.75% 3/1/03 100
500,000 Lehman Bros Holdings
7.00% 05/15/03 497
505,000 US Central Credit Union
6.00% 05/21/03 498
300,000 John Deere Credit
6.125% 05/30/03 292
260,000 National Rural Utilities
6.00% 01/15/04 255
500,000 WorldCom, Inc.
7.55% 04/01/04 518
300,000 The Money Store
8.375% 04/15/04 322
500,000 Associates Corp., NA
5.8% 04/20/04 483
400,000 Eli Lilly & Co.
8.375% 02/07/05 430
500,000 Newcourt Credit Group
6.875% 02/16/05 484
465,000 Union Pacific Co.
7.60% 05/01/05 476
490,000 Merck & Co., Inc.
6.75% 09/19/05 495
300,000 Bank United Corp.
8.875% 05/01/07 301
480,000 LCI Int'l, Inc.
7.25% 06/15/07 473
350,000 Calenergy Co., Inc.
7.63% 10/15/07 353
200,000 Jones Intercable
10.50% 03/01/08 215
500,000 Tyco Int'l Group
6.125% 01/15/09 465
500,000 East Coast Power, LLC
7.066% 03/31/12 459
8,301
U.S. Government Agencies - 6.9%
250,000 HUD Housing Urban Development
6.36% 08/01/04 251
500,000 Fannie Mae
5.75% 06/15/05 491
742
Mortgage Obligations - 0.1%
12,585 GNMA 8 1/2 7/15/21 13
Variable Demand Notes - 7.6%
497,400 Firstar Bank Milwaukee,N.A. -4.73% 497
160,600 American Family-4.70% 161
160,200 Warner Lambert-4.70% 160
818
Total Investments 98.7%
(Cost $10,898) (a) 10,608
Other Assets Less Liabilities - 1.3% 145
Net Assets-100.0% $10,753
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $4, and aggregate gross unrealized depreciation is $294,
resulting in net unrealized depreciation of $290 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security
<Page 18>
Schedule of Investments (unaudited) June 30, 1999
MONETTA GOVERNMENT MONEY MARKET FUND
Shares or
Principal Market Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
Federal Home Loan Bank - 17.0%
130,000 Due 07/21/99 $ 130
625,000 Due 08/04/99 622
752
Federal National Mortgage Assoc. - 36.4%
200,000 Due 07/07/99 200
530,000 Due 07/16/99 529
270,000 Due 08/05/99 269
620,000 Due 09/10/99 614
1,611
Federal Home Loan Mortgage Corp. - 45.5%
621,000 Due 07/02/99 621
850,000 Due 08/12/99 845
550,000 Due 08/23/99 546
2,012
Total Investments - 98.9%
(Cost $4,375) (a) 4,375
Other Assets Less Liabilities - 1.1% 51
Net Assets - 100.0% $4,426
</TABLE>
(a) Cost is identical for book and tax purposes.
See accompanying notes to financial statements.
<Page 19>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1999 (unaudited)
(In Thousands)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap Large-Cap
Monetta Equity Equity Equity Balanced
Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Assets:
Investments at market
value(cost: $82,854;
$2,688; $12,530; $5,113;
$6,737; $10,898; $4,375)
(Note 1) $102,739 $3,431 $15,772 $6,556 $8,371
Cash 0 0 0 0 0
Interest and dividends
receivable 19 2 5 5 54
Receivable for securities
sold 3,055 0 422 0 0
Fund shares sold 0 0 0 1 0
Total Assets 105,813 3,433 16,199 6,562 8,425
Liabilities:
Payables:
Custodial bank 358 3 25 32 38
Investment advisory
fees (Note 2) 82 2 10 4 3
Distribution and service
charges payable 0 2 17 4 6
Investments purchased 1,415 81 63 0 0
Fund shares redeemed 0 0 0 0 1
Accrued expenses 137 12 12 8 7
Total Liabilities 1,992 100 127 48 55
Net Assets 103,821 3,333 16,072 6,514 8,370
Analysis of net assets:
Paid in capital (b) 93,766 2,9211 2,263 4,980 6,084
Accumulated undistributed
net investment income
(loss) 324 (32) (66) (22) 3
Accumulated undistributed
net realized gain (loss)(10,154) (299) 633 113 649
Net unrealized
appreciation on
investments 19,885 743 3,242 1,443 1,634
Net Assets $103,821 $3,333 $16,072 $6,514 $8,370
Net asset value, offering
price, and redemption
price per share (6,830
shares of capital stock
and 223; 1,060; 396; 519;
1,040; 4,426 shares of
beneficial interest
issued and outstanding
respectively) $15.20 $14.95 $15.17 $16.43 $16.14
</TABLE>
<TABLE>
<CAPTION>
Intermediate Governement
Bond Money Market
Fund Fund
<S> <C> <C>
Assets:
Investments at market
value (cost: $82,854;
$2,688; $12,530; $5,113;
$6,737; $10,898; $4,375)
(Note 1) $10,608 $4,375
Cash 0 54
Interest and dividends
receivable 164 0
Receivable for securities
sold 0 0
Fund shares sold
Total Assets 10,774 4,429
Liabilities:
Payables:
Custodial bank
Investment advisory
fees (Note 2) 1 0
Distribution and service
charges payable 5 0
Investments purchased 0 0
Fund shares redeemed 0 0
Accrued expenses 3 3
Total Liabilities 21 3
Net Assets 10,753 4,426
Analysis of net assets:
Paid in capital (b) 10,924 4,426
Accumulated undistributed
net investment income
(loss) 2 0
Accumulated undistributed
net realized gain (loss)
Net unrealized
appreciation on
investments (289) 0
Net Assets $10,753 $4,426
Net asset value, offering
price, and redemption
price per share (6,830
shares of capital stock
and 223; 1,060; 396; 519;
1,040; 4,426 shares of
beneficial interest
issued and outstanding
respectively) $10.34 $1.00
</TABLE>
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
(b) Amount for Monetta Fund represents $68 of $0.01 par value and $93,698 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 20>
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1999 (unaudited)
(In Thousands)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap Large-Cap
Monetta Equity Equity Equity Balanced
Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Investment income and
expenses:
Investment income:
Interest $202 $7 $22 $9 $109
Dividend 39 1 18 11 11
Other income 857 0 (a) 0 0
Total investment income 1,098 8 40 20 120
Expenses:
Investment advisory fee
(Note 2) 520 12 61 19 20
Distribution expense 0 4 21 6 13
Custodial fees and bank
cash management fee 22 2 6 2 4
Transfer and shareholder
servicing agent fee 232 22 18 15 11
Total expenses 774 40 106 42 48
Expenses waived and
reimbursed 0 (a) 0 0 0
Expenses net of waived and
reimbursed expenses 774 40 106 42 48
Net investment income (loss) 324 (32) (66) (22) 72
Realized and unrealized gain
(loss) on investments:
Realized gain (loss) on
investments:
Proceeds from sales 134,757 5,396 21,271 2,573 13,103
Cost of securities sold 132,597 5,040 20,253 2,195 11,534
Net realized gain (loss) on
investments 2,160 356 1,018 378 1,569
Net unrealized appreciation
on investments:
Beginning of period 22,489 755 2,452 837 2,067
End of period 19,885 743 3,242 1,443 1,634
Net change in net unrealized
appreciation (depreciation)
on investments during the
period (2,604) (12) 790 606 (433)
Net realized and unrealized
gain (loss) on investments (444) 344 1,808 984 1,136
Net increase (decrease) in
net assets from operations $(120) $312 $1,742 $962 $1,208
</TABLE>
<TABLE>
<CAPTION>
Intermediate Government
Bond Money Market
Fund Fund
<S> <C> <C>
Investment income and
expenses:
Investment income: $271 $103
Interest $271 $103
Dividend 0 0
Other income (a) (a)
Total investment income 271 103
Expenses:
Investment advisory fee (Note 2) 16 5
Distribution expense 11 2
Custodial fees and bank
cash management fee 3 1
Transfer and shareholder
servicing agent fee 4 4
Total expenses 34 12
Expenses waived and
reimbursed expenses 25 5
Net investment income (loss) 246 98
Realized and unrealized gain
(loss) on investments:
Realized gain (loss) on
investments:
Proceeds from sales 10,894 10,098
Cost of securities sold 10,794 10,098
Net realized gain (loss) on
investments 100 0
Net unrealized appreciation on
investments:
Beginning of period 96 0
End of period (289) 0
Net change in net unrealized
appreciation (depreciation)
on investments during the
period (385) 0
Net realized and unrealized
gain (loss) on investments (285) 0
Net increase (decrease) in
net assets from operations $(39) $98
</TABLE>
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
<Page 21>
Statements of Changes in Net Assets
Six Months Ended June 30, 1999 (unaudited) and Year Ended December 31, 1998
(In Thousands)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap
Monetta Equity Equity
Fund Fund Fund
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
From investment activities:
Operations:
Net investment income (loss) $324 $(925) $(32) $(70) $(66) $31
Net realized gain (loss) on
investments 2,160 (12,315) 356 (655) 1,018 (385)
Net change in net unrealized
appreciation (depreciation)
on investments during the
period (2,604) (736) (12) 638 790 411
Net increase (decrease) in net
assets from operations (120) (13,976) 312 (87) 1,742 57
Distribution from net
investment income 0 0 0 0 0 (31)
Distribution from short-term
capital gains, net (b) 0 (2,369) 0 (30) 0 (741)
Distribution from net realized
gains (0) (3,088) 0 0 0 (1,028)
Increase (decrease) in net
assets from investment
activities (120) (19,433) 312 (117) 1,742 (1,743)
From capital transactions
(Note 3):
Proceeds from shares sold 2,995 11,137 223 2,479 303 5,180
Net asset value of shares
issued through dividend
reinvestment 0 5,350 0 29 0 1,770
Cost of shares redeemed (23,743) (35,780) (1,182) (929) (4,893)(8,195)
Increase (decrease) in net
assets from capital
transactions (20,748) (19,293) (959) 1,579 (4,590)(1,245)
Total increase (decrease)
in net assets (20,868) (38,726) (647) 1,462 (2,848)(2,988)
Net assets at beginning
of period 124,689 163,415 3,980 2,518 18,920 21,908
Net assets at end of period $103,821 $124,689 $3,333 $3,980 $16,072$18,920
Accumulated undistributed
net investment income (loss) 324 0 (32) 0 (66) 0
</TABLE>
See accompanying notes to financial statements.(a) Rounds to less than $1,000.
(b) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
<Page 22>
Statements of Changes in Net Assets
Six Months Ended June 30, 1999 (unaudited) and Year Ended December 31, 1998
(In Thousands)
<TABLE>
<CAPTION>
Large-Cap Intermediate
Equity Balanced Bond
Fund Fund Fund
1999 1998 1999 1998 1999 1998
<S> <C> <C> <C> <C> <C> <C>
From investment activities:
Operations:
Net investment income (loss)$(22) $(21) $72 $300 $246 $264
Net realized gain (loss) on
investments 378 (265) 1,569 (919) 100 62
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 606 638 (433) 1,716 (385) 39
Net increase (decrease) in net
assets from operations 962 352 1,208 1,097 (39) 365
Distribution from net
investment income 0 0 (71) (300) (244) (264)
Distribution from short-term
capital gains, net (b) 0 (208) 0 (395) 0 (23)
Distribution from net realized
gains 0 (62) 0 (56) 0 (23)
Increase (decrease) in net
assets from investment
activities 962 82 1,137 346 (283) 55
From capital transactions
(Note 3):
Proceeds from shares sold 2,360 829 836 4,715 6,805 3,943
Net asset value of shares
issued through dividend
reinvestment 0 264 64 404 204 257
Cost of shares redeemed (993) (1,255) (8,156) (3,030) (2,649) (1,512)
Increase (decrease) in net
assets from capital
transactions 1,367 (162) (7,256) 2,089 4,360 2,688
Total increase (decrease)
in net assets 2.329 (80) (6,119) 2,435 4,077 2,743
Net assets at beginning
of period 4,185 4,265 14,489 12,054 6,676 3,933
Net assets at end of period $6,514 $4,185 $8,370 $14,489 $10,753 $6,676
Accumulated undistributed
net investment income loss (22) 0 3 2 2 (a)
</TABLE>
<TABLE>
<CAPTION>
Government
Money Market
Fund
1999 1998
<S> <C> <C>
From investment activities:
Operations:
Net investment income (loss) $98 $241
Net realized gain (loss) on
investments 0 0
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 0 0
Net increase (decrease) in net
assets from operations 98 241
Distribution from net
investment incom (98) (241)
Distribution from short-term
capital gains, net (b) 0 0
Distribution from net realized
gains 0 0
Increase (decrease) in net
assets from investment
activities 0 0
From capital transactions
(Note 3):
Proceeds from shares sold 2,772 5,724
Net asset value of shares
issued through dividend
reinvestment 95 233
Cost of shares redeemed (2,536) (6,326)
Increase (decrease) in net
assets from capital
transactions 331 (369)
Total increase (decrease)
in net assets 331 (369)
Net assets at beginning
of period 4,095 4,464
Net assets at end of period $4,426 $4,095
Accumulated undistributed
net investment income (loss) 0 0
</TABLE>
<Page 23>
Notes To Financial Statements June 30, 1999
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.
The Monetta Family of Mutual 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.
(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.
<Page 24>
Notes To Financial Statements June 30, 1999
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, 1998, the Funds have accumulated capital loss carry
forwards for tax purposes, which will expire on December 31, 2006, of: Monetta
Fund, Inc., $8,865,094; Monetta Small-Cap Equity Fund, $463,923; Monetta Mid-
Cap Equity Fund, $286,883; Monetta Large-Cap Equity Fund, $262,422; and Monetta
Balanced Fund, $916,270.
Net realized gains or losses differ for financial reporting and tax purposes
as a result of losses from wash sales, post October 31 losses which are not
recognized for tax purposes until the first day of the following fiscal year,
and losses and gains from real estate investment trusts.
(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.
(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-tern 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.
Distributions from net realized gains for book purposes may include short-
term capital gains, which are included as ordinary income for tax purposes.
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 six months ended June 30, 1999,
renumerations required to be paid to all interested directors or trustees 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 1.0% for Monetta
Fund; 0.75% for the Small-Cap, Mid-Cap, and Large-Cap Equity Funds; 0.40% for
the 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
Funds' ordinary operating expenses other than the advisory fee, distribution
charges (Trust only) and charges of the Funds' custodian and transfer agent.
Investment advisory fees waived for the six months ended June 30, 1999, for the
Intermediate Bond Fund were $9,097 of total fees of $15,920. Investment
advisory fees waived, and 12B-1 fees waived through June 30, 1999, for the
Government Money Market Fund were $5,282, and $2,113, respectively.
Additionally, brokerage commissions of $660 and $200, were paid by the Monetta
Fund and Mid-Cap Fund, respectively to Monetta Investment Services, L.L.C.
during the six months ended June 30, 1999.
<Page 25>
Notes To Financial Statements June 30, 1999
Monetta Financial Services, Inc., as of June 30, 1999 owned 32,815 shares or
3.2% of the Intermediate Bond Fund, 222,994 shares or 8.1% of the
Small-Cap Equity Fund, 39,900 shares or 7.7% of the Balanced Fund and 7,395
shares or 1.9% of the Large-Cap Equity Fund. Monetta Financial Services, Inc.
owns less than 1% of the Monetta Fund, the Mid-Cap Equity Fund, and the
Government Money Market Fund.
3. CAPITAL STOCK AND SHARE UNITS:
There are 100,000,000 shares of $0.01 par value capital stock authorized for
the Monetta Fund. There is an unlimited number of no par value shares of
beneficial interest authorized for each series of the Trust.
<TABLE>
<CAPTION>
Gov't
Small-Cap Mid-Cap Large-Cap Intermediate Money
Monetta Equity Equity Equity Balanced Bond Market
(In Thousands) Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
1998 beginning
shares 9,460 181 1,463 319 856 377 4,464
Shares sold 702 184 375 63 329 369 5,724
Shares issued
upon dividend
reinvestment 412 2 144 23 31 24 233
Shares
redeemed (2,241) (70) (588) (94) (215) (143) (6,326)
Net increase
(decrease)
in shares
outstanding (1,127) 116 (69) (8) (215) 145 (369)
1999 beginning
shares 8,333 297 1,394 311 1,001 627 4,095
Shares sold 217 17 22 152 53 644 2,772
Shares issued
upon dividend
reinvestment 0 0 0 0 4 19 95
Shares
redeemed (1,720) (91) (356) (67) (539) (250) (2,536)
Net increase (decrease)
in shares
outstanding (1,503) (74) (334) 85 (482) 413 331
Ending shares 6,830 223 1,060 396 519 1,040 4,426
</TABLE>
4. PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities for the six
months ended June 30, 1999, excluding short-term securities were: Monetta
Fund, $74,788,491 and $94,771,767; Small-Cap Fund, $4,427,411 and $5,396,188;
Mid-Cap Fund, $9,874,180 and $15,676,677; Large-Cap Fund, $3,845,111 and
$2,573,637; Balanced Fund, $3,097,048 and $10,471,569; and Intermediate Bond
Fund, $9,844,523 and $6,204,729. The cost of purchases and proceeds from the
sales of government securities included in the preceding numbers were as
follows: Balanced Fund, $0 and $286,239; and Intermediate Bond Fund,
$1,884,733 and $1,943,412.
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
0.25% for the Small-Cap, Mid-Cap, Large-Cap, Balanced, and Intermediate Bond
Funds and up to 0.10% for the Government Money Market Fund are accrued daily.
The distributor is Funds Distributor, Inc.
<Page 26>
Notes To Financial Statements June 30, 1999
6. FINANCIAL HIGHLIGHTS:
Financial highlights for Monetta Fund for a share of capital stock
outstanding throughout the period is presented below:
<TABLE>
<CAPTION>
MONETTA FUND
Six Months
Ended 6/30/99
(unaudited) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $14.964 $17.274 $15.842 $15.591 $14.515 $15.539
Net investment income (loss)0.043 (0.104) (0.041) (0.079) 0.029 (0.026)
Net realized and
unrealized gain (loss)
on investments 0.194 (1.554) 4.223 0.330 4.075 (0.938)
Total from investment
operations: 0.237 (1.658) 4.182 0.251 4.104 (0.964)
Less:
Distributions from net
investment income 0.000 0.000 0.000 0.000 (0.028) 0.000
Distributions from short-term
capital gains, net (a) 0.000 (0.283) (1.910) 0.000 (3.000) (0.060)
Distributions from net
realized gains 0.000 (0.369) (0.840) 0.000 0.000 0.000
Total distributions 0.000 (0.652) (2.750) 0.000 (3.028) (0.060)
Net asset value at end of
period $15.201 $14.964 $17.274 $15.842 $15.591 $14.515
Total return 1.60% (9.03%) 26.18% 1.60% 28.02% (6.21%)
Ratio to average net assets:
Expenses 1.50% 1.36% 1.48% 1.38% 1.36% 1.35%
Net investment income 0.31% (0.64%) (0.24%) (0.51%) 0.18% (0.15%)
Portfolio turnover 77.0% 107.5% 97.8% 204.8% 272.0% 191.3%
Net assets ($ millions) $103.89 $124.7 $163.4 $211.5 $362.7 $364.9
</TABLE>
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
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 27>
Notes To Financial Statements June 30, 1999
Financial highlights for each Fund of the Trust for a share outstanding
throughout the period are as follows:
<TABLE>
<CAPTION>
Small-Cap Equity Fund
Six Months 2/1/97
Ended 6/30/99 Through
(unaudited) 1998 12/31/97
<S> <C> <C> <C>
Net asset value at beginning of
period $13.396 $13.900 $10.000
Net investmentincome (loss) (0.128) (0.272) (0.148)
Net realized and unrealized
gain (loss) on investments 1.679 (0.136) 4.878
Total from investment operations 1.551 (0.408) 4.730
Less:
Distributions from net
investment income 0.000 0.000 0.000
Distributions from short-term
capital gains, net (a) 0.000 (0.096) (0.830)
Distributions from net
realized gains 0.000 0.000 0.000
Total distributions 0.000 (0.096) (0.830)
Net asset value at end of period $14.947 $13.396 $13.900
Total return* 11.57% (2.81)% 47.17%
Ratios to average net assets:2.50%
Expenses* 2.50% 2.39% 1.75%
Net investment income* (0.99)% (2.04)% (1.13)%
Portfolio turnover 147.9% 200.4% 138.8%
Net assets ($ thousands) $3,333 $3,980 $2,518
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap Equity Fund
Six Months
Ended 6/30/99
(unaudited) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $13.571 $14.975 $14.814 $11.962 $12.199 $12.537
Net investment income (loss) (0.055) 0.022 (0.045) 0.044 0.059 0.071
Net realized and unrealized
gain (loss) on investments 1.651 (0.266) 4.296 2.852 2.874 0.193
Total from investment
operations 1.596 (0.244) 4.251 2.896 2.933 0.264
Less:
Distributions from net
investment income 0.000 (0.022) 0.000 (0.044) (0.050) (0.069)
Distributions from short-term
capital gains, net (a) 0.000 (0.477) (1.452) 0.000 (2.990) (0.533)
Distributions from net
realized gains 0.000 (0.661) (2.638) 0.000 (0.130) 0.000
Total distributions 0.000 (1.160) (4.090) (0.044) (3.170) (0.602)
Net asset value at end of
period $15.167 $13.571 $14.975 $14.814 $11.962 $12.199
Total return* 11.79% (0.85)% 29.14% 24.20% 24.54% 2.17%
Ratios to average net assets:
Expenses* 1.30% 1.21% 1.26% 1.23% 1.25% 1.30%
Net investment income* (0.40)% 0.15% (0.28)% 0.32% 0.44% 0.57%
Portfolio turnover 62.5% 237.6% 137.8% 93.3% 254.4% 210.0%
Net assets ($ thousands) $16,072 $18,920 $21,908 $17,338 $14,216 $11,736
</TABLE>
(a)Distributions of short-term capital gains are included as ordinary
income for tax purposes.
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 28>
Notes To Financial Statements June 30, 1999
<TABLE>
<CAPTION>
Large-Cap Equity Fund
Six Months 9/9/95
Ended 6/30/99 Through
(unaudited) 1998 1997 1996 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $13.437 $13.359 $12.266 $10.571 $10.000
Net investment income (loss)(0.068) (0.068) (0.007) 0.023 0.005
Net realized and unrealized
gain (loss) on investments 3.060 1.074 3.250 2.928 0.570
Total from investment
operations 2.992 1.006 3.243 2.951 0.575
Less:
Distributions from net
investment income 0.000 0.000 0.000 (0.023) (0.004)
Distributions from
short-term capital
gains, net (a) 0.000 (0.714) (1.113) (1.188) 0.000
Distributions from
net realized gains 0.000 (0.214) (1.037) (0.045) 0.000
Total distributions 0.000 (0.928) (2.150) (1.256) (0.004)
Net asset value at end of
period $16.429 $13.437 $13.359 $12.266 $10.571
Total return* 22.25% 8.99% 26.64% 28.20% 5.74%
Ratios to average net assets:
Expenses* 1.69% 1.86% 1.51% 1.51% 0.69%
Net investment income* (0.45)% (0.52)% (0.05)% 0.31% 0.05%
Portfolio turnover 52.9% 207.5% 123.2% 152.7% 38.2%
Net assets ($ thousands) $6,514 $4,185 $4,265 $2,288 $1,072
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund
Six Months 9/1/95
Ended 6/30/99 Through
(unaudited) 1998 1997 1996 12/31/95
<S> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $14.476 $14.078 $12.643 $10.605 $10.000
Net investment income (loss)0.108 0.290 0.264 0.132 0.009
Net realized and unrealized gain
(loss) on investments 1.684 0.838 2.398 2.598 0.602
Total from investment
operations 1.792 1.128 2.662 2.730 0.611
Less:
Distributions from net
investment income (0.130) (0.286) (0.224) (0.132) (0.004)
Distributions from short-term
capital gains, net (a) 0.000 (0.389) (0.927) (0.560) (0.002)
Distributions from net
realized gains 0.000 (0.055) (0.076) 0.000 0.000
Total distributions (0.130) (0.730) (1.227) (0.692) (0.006)
Net asset value at end of
period $16.138 $14.476 $14.078 $12.643 $10.605
Total return* 12.38% 8.59% 21.21% 25.94% 6.16%
Ratios to average net assets:
Expenses* 0.94% 0.84% 1.02% 1.40% 0.91%
Net investment income* 0.71% 2.06% 1.88% 1.54% 0.08%
Portfolio turnover 30.6% 127.7% 115.9% 117.8% 54.8%
Net assets ($ thousands) $8,370 $14,489 $12,054 $2,336 $410
</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.The per share
ratios are calculated using the weighted average number of shares
outstanding during the period, except distributions that are based on shares
outstanding at record date.
<Page 29>
Notes To Financial Statements June 30, 1999
<TABLE>
<CAPTION>
Intermediate Bond Fund
Six Months
Ended 6/30/99
(unaudited) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $10.652 $10.445 $10.208 $10.244 $9.624 $10.345
Net investment income 0.282 0.592 0.599 0.612 0.655 0.589
Net realized and
unrealized gain
(loss) on investments (0.326) 0.269 0.278 0.019 0.740 (0.690)
Total from investment
operations (0.044) 0.861 0.877 0.631 1.395 (0.101)
Less:
Distributions from
net investment income(0.270) (0.577) (0.592) (0.612) (0.655)(0.580)
Distributions from
short-term capital
gains, net (a) 0.000 (0.038) (0.047) (0.055) (0.120)(0.040)
Distributions from net
realized gains 0.000 (0.039) (0.001) 0.000 0.000 0.000
Total distributions (0.270) (0.654) (0.640) (0.667) (0.775)(0.620)
Net asset value at
end of period $10.338 $10.652 $10.445 $10.208 $10.244$9.624
Total return (0.39)% 8.38% 8.91% 6.46% 14.84% (1.04)%
Ratios to average net assets:
Expenses - Net 0.56% 0.55% 0.65% 0.55% 0.27% 0.28%
Expenses - Gross (b) 0.66% 0.75% 0.87% 0.85% 0.75% 0.88%
Net investment
income-Net 2.67% 5.59% 5.82% 5.75% 5.94% 5.94%
Net investment
income-Gross (b) 2.57% 5.39% 5.60% 5.45% 5.46% 5.34%
Portfolio turnover 69.9% 52.0% 96.7% 28.9% 75.1% 94.5%
Net assets
($ thousands) $10,753 $6,676 $3,933 $2,769 $3,589 $3,010
</TABLE>
<TABLE>
<CAPTION>
Government Money Market Fund
Six Months
Ended 6/30/99
(unaudited) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value at
beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Net investment income 0.023 0.051 0.050 0.049 0.059 0.040
Net realized and unrealized
gain (loss) on investments 0.000 0.000 0.000 0.000 0.000 0.000
Total from investment
operations
Less:
Distributions from net
investment income (0.023) (0.051)(0.050)(0.049)(0.059)(0.040)
Distributions from short-term
capital gains, net (a) 0.000 0.000 0.000 0.000 0.000 0.000
Distributions from net
realized gains 0.000 0.000 0.000 0.000 0.000 0.000
Total distributions (0.023) (0.051)(0.050)(0.049)(0.059)(0.040)
Net asset value at end
of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
Total Return 2.33% 5.24% 5.15% 5.06% 5.87% 4.04%
Ratios to average net assets:
Expenses - Net 0.245 0.32% 0.39% 0.31% 0.07% 0.0%
Expenses - Gross (b) 0.42% 0.68% 0.76% 0.67 0.59% 0.66%
Net investment income - Net 2.30% 5.11% 5.02% 4.95% 5.69% 4.04%
Net investment income -
Gross (b) 2.13% 4.76% 4.65% 4.59% 5.17% 3.39%
Portfolio turnover N/A N/A N/A N/A N/A N/A
Net assets ($ thousands) $4,426 $4,095 $4,464 $6,232 $4,393 $3,315
</TABLE>
(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.
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 30>
