<PAGE> 1
SEMI-ANNUAL REPORT
JUNE 30, 1997
YOUR FOUNDATION FOR INVESTMENT STRENGTH
[Photo]
The
Kent
Funds(R)
<PAGE> 2
MESSAGE TO SHAREHOLDERS
Dear Kent Funds Shareholder:
I am pleased to present the Semi-Annual Report of The Kent Funds for the
period ended June 30, 1997. We urge you to review the sections of the report
that deal with your Kent Fund holdings as well as Kent Funds you may not yet
own. The portfolio review of each fund gives you insight into our managers'
views of the financial markets and how their funds are positioned to attempt to
exploit those market conditions. Each Kent Fund follows a distinct, disciplined
investment approach providing you with broad investment choices across our fund
family. We hope you consider The Kent Funds as you review your investment
strategy.
Our report begins with our Economic Outlook. This feature is intended to
provide our view of the economy and how it relates to our investment philosophy
and current strategies. If you have any questions about your investments in The
Kent Funds or would like to learn more about them, contact your investment
representative or call us at 1-800-633-KENT (5368).
Sincerely,
/s/ James F. Duca
James F. Duca, II
President
<PAGE> 3
INVESTMENT ADVISER
Old Kent Bank
One Vandenberg Center
Grand Rapids, MI 49503
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
This report is submitted for the general information of shareholders of The Kent
Funds. It is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective prospectus for the funds, which contains
more information concerning the funds' investment policies as well as fees and
expenses and other pertinent information. Please read the prospectus carefully
before investing.
The performance indices used for comparison in this report are unmanaged
indices. Unlike actual mutual fund performance, the performance of an index does
not reflect any management fees, other expenses or sales charges. A direct
investment in the unmanaged index is not possible.
Shares of the funds are not deposits or obligations of, or
guaranteed or endorsed by, Old Kent Bank or any of its affiliates.
Shares of the funds are not federally insured by the U.S. Government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board
FDIC or any other agency. Investment return and principal value will vary
as a result of market conditions and other factors, so that shares of
the funds, when redeemed, may be worth more or less than their
original cost. An investment in the funds involves investment risks,
including the possible loss of principal. There can be no assurance
that the money market funds will be able to sustain a stable net asset
value of $1.00 per share.
1
<PAGE> 4
ECONOMIC OUTLOOK
REAL ECONOMIC ACTIVITY
An Upbeat Appraisal.
The current business expansion has now entered its seventh year, making it
the third longest running expansion in the post-War era. Economic policy has
brought the United States to a new era--an era of stable money and lower income
tax rates that has made our economic expansions less volatile and longer lived.
Over the past 184 months, our economy has experienced only eight months of
recession. The extended nature of the current and the previous business
expansions has created an environment characterized by little quarter-to-quarter
risk of unsettling economic imbalances, which supports higher consumer
confidence, greater capital investments, and higher common stock prices.
Consistent with this theme, Alan Greenspan, chairman of the Federal
Reserve, gave the most positive assessment of the U.S. economy he has ever
delivered in his recent testimony before Congress. He characterized the
economy's recent performance as "exceptional" and noted that inflation "has
shown little tendency to rebound." Mr. Greenspan suggested that "the economy may
be experiencing an upward shift in its longer range output potential."
Productivity played a prominent role in Mr. Greenspan's remarks, particularly as
he attempted to explain the "surprisingly benign combination of output and
prices that has marked the business expansion of the last six years."
<TABLE>
<CAPTION>
REAL ECONOMIC ACTIVITY*
1997
1st Qtr 2nd Qtr
------- -------
<S> <C> <C>
Gross Domestic Product 4.9% 2.2%
Personal Consumption
Expenditures 5.3% 0.8%
Disposable Personal Income 6.8% 4.0%
Domestic Private Final
Sale 5.0% 2.9%
*Annualized
</TABLE>
Slowdown in Consumer Spending.
Economic activity expanded at a more sustainable pace of 2.2 percent during
the second quarter; down from a revised, but still brisk, 4.9 percent rate for
the first quarter. Nearly all of the slowdown resulted from weaker consumer
outlays and a further deterioration in the nation's trade deficit. The growth
that did occur last quarter was driven by business capital spending, while
inflation continued to decline to levels not seen in 35 to 40 years.
A more reticent consumer resulted in consumer spending gaining at a rate of
only 0.8 percent after soaring 5.3 percent during the first quarter. The splurge
in consumer outlays during the winter months pushed the personal savings rate to
a new low for the postwar period of 3.7 percent, forcing consumers to pull back.
Consumer spending was also negatively impacted by the rise in mortgage rates
over the months of March and April, which closed the door on refinancings as a
means of enhancing consumers' cash flow.
Durable goods outlays, particularly on automobiles, were most negatively
affected. Furniture purchases were the strongest component of consumer spending,
reflecting the pickup in new and existing home sales over the past two quarters.
Reflecting the squeeze on discretionary income from the sharp rise in
installment debt burdens over the past two to three years, outlays for
nondurable goods, which includes items such as food and clothing, experienced a
very unusual drop last quarter.
While the low savings rate and high debt burdens will work together to hold
the consumer back,
<TABLE>
<CAPTION>
CONSUMER SPENDING*
SECOND QUARTER 1997
<S> <C>
Durable Goods -5.7%
Motor Vehicles -17.1%
Furniture 7.9%
Nondurable Goods -2.1%
Food -2.3%
Apparel -5.8%
Services 3.7%
Medical Care 3.7%
*Annualized
</TABLE>
2
<PAGE> 5
ECONOMIC OUTLOOK
consumer spending is expected to rebound to the 3.0 to 3.5
percent range over the second half of the year for the following reasons:
- Income growth remains strong, with real disposable personal income
having grown at a 3.8 percent rate during the first half of the year.
- Employment gains remain strong with nonfarm payrolls rising 2.5
million persons, or 2.1 percent, over the past year. o Consumer
confidence readings are near ebullient levels, and buying plans are on
the rise.
- The stock market is buoyant and could provide a wealth effect for
consumers should they choose to spend some of their new found wealth.
- Refinance activity has picked up sharply over the May-to-July period,
which will give consumers' discretionary cash flow a boost.
The foreign trade sector subtracted another 1.2 percentage points off the
economy's growth rate last quarter, despite a robust 14.4 percent rise in
exports. Exports are being driven by our commanding position in the technology
sector. The trade deficit continues to balloon, however, as imports surged at a
21.8 percent rate. The competitive advantage of inexpensive labor found in many
emerging countries today, particularly China, has caused a flood of less
expensive imported goods to capture a growing market share in the United States.
Equipment Outlays Continue to Lead the Economy.
Once again, the strongest sector of the economy was business capital
spending, which rose at a 15.1 percent pace. Structure outlays rebounded from a
small drop in the first quarter. The more than three-year-long recovery in
structure outlays continues as commercial and industrial construction has now
risen in ten out of the past thirteen quarters.
Equipment purchases continue to be the major driving force behind business
capital spending, however, growing at a 10.0 percent annualized rate since the
beginning of the current expansion. Almost two thirds of the advance in
equipment purchases has been on high-technology equipment, which has grown at an
amazing 16.6 percent annual rate over the past six years. Spending on computers
alone has increased almost sevenfold. The main motivation behind the surge in
equipment purchases is the desire of businesses to improve their competitiveness
by increasing productivity, restraining costs and boosting quality. The fact
that the price of high-technology equipment has been declining while labor
compensation has been rising is an added incentive to invest in equipment.
Residential construction outlays rose in the second quarter, basically
getting back to their year-ago levels after declining during the second half of
1996. The rise in mortgage rates through September of last year took the wind
out of the sails of the housing industry. The subsequent drop in mortgage rates,
along with the strong employment and income gains, have breathed some life back
into home building. The highs for the housing industry appear to have been
reached for this business cycle, and expenditures are expected to vary within a
few percentage points of the current level depending on the level of mortgage
rates.
No End to the Expansion in Sight.
The economy has entered its seventh year of expansion, with no end in
sight. The key to prolonging the expansion is the economy's growth rate settling
into a slower, more sustainable pace similar to that which was experienced
during the second quarter. The Federal Reserve's policy of holding the line
against a buildup of inflation pressures lowers the odds of an expansion-ending
spike upwards in
<TABLE>
<CAPTION>
BUSINESS CAPITAL SPENDING*
1997
1st Qtr 2nd Qtr
------- -------
<S> <C> <C>
Structures -2.1% 2.3%
Producers' Durable
Equipment 6.7% 20.4%
High Technology
Equipment 17.3% 16.6%
Computers 32.8% 32.8%
*Annualized
</TABLE>
3
<PAGE> 6
ECONOMIC OUTLOOK
short-term interest rates. There are few, if any, signs of an
unintended inventory buildup as inventory-to-sales ratios are holding at or near
all-time lows. A rebound in consumer spending with continued strong demand for
capital investments is expected to move the economy's growth rate slightly
higher to the 2.5 to 3.0 percent range over the second half of the year.
INFLATION
Best Inflation Readings in 35 to 40 Years.
The U.S. economy is enjoying the best of both worlds--growth with little or
no inflation. Benign inflation has certainly been the hallmark of the current
business expansion, which features low core rates of inflation for consumer
goods and falling core rates of inflation for producer prices after six years of
expansion. The Producer Price Index declined every month over the January to
June period. Such steady price deflation is remarkable and eclipses the longest
running previously recorded streak of five straight monthly drops in 1952. The
best overall inflation gauge, the Gross Domestic Purchases Price Index inched up
at just a 0.6 percent rate last quarter, its smallest rise since 1959. With the
median age in the U.S. at 34.9 years, half of the people in the country have
never seen inflation rates as low as those recorded this Spring.
Never has inflation been so low at such an advanced stage of a business
cycle. The root cause of the unusually tepid rate of inflation at a time when
business and economic theory anticipate an upswing is the continuing,
unprecedented and intense level of global competition. Businesses have been
forced to sharpen their focus on becoming even more efficient and productive in
order to expand their markets beyond local, regional and national borders in
order to grow.
On the other side of the coin, the end of the Cold War has given many
foreign competitors new access to U.S. markets. Historically, free trade during
peace-time has dramatically increased competition as each country attempts to
exploit and export its unique array of competitive advantages. This subsequently
has stimulated technological innovation on the part of those businesses that
find themselves under attack as they attempt to retain their market share. One
key competitive advantage found in many emerging countries today is inexpensive
labor, which is being imported into the United States through less expensive
imported goods. This process of free trade spurs technological change and
productivity enhancements, reinforcing the current low inflation environment.
The outlook for inflation remains very positive and is expected to remain near
two percent for the remainder of this year and into 1998.
JOSEPH T. KEATING
Chief Investment Officer
The information contained herein is based on Commerce Department data released
July 30, 1997.
<TABLE>
<CAPTION>
INFLATION MEASURES
SECOND QUARTER 1997
<S> <C>
Gross Domestic Purchase
Price Index 0.6%
Consumer Price Index 1.0%
CPI less Food and Energy 2.4%
Producer Price Index -3.9%
PPI less Food and Energy -1.2%
*Annual Rate
</TABLE>
4
<PAGE> 7
PORTFOLIO REVIEWS
THE KENT GROWTH AND INCOME FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER, AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
The six months that ended June 30, 1997, were eventful ones in the
financial markets. Relatively rapid economic growth early in the period created
concern that rising inflation could scuttle the financial markets. As a result,
the Federal Reserve raised short-term interest rates, hoping to slow economic
growth and quell the inflation threat. They were successful: Economic growth did
slow during the second quarter to 2.2%; inflation fears subsided; and fixed
income yields stabilized.
We also continued to see strong money flows from retirement accounts and
other sources into individual common stocks and mutual funds. Mergers,
acquisitions and stock repurchases also boosted demand for stocks. Moreover,
investors were willing to pay for the anticipation of continued earnings growth,
especially in the case of large, well-established companies.
For the six months ended June 30, the Fund's Institutional and Investment
shares had total returns of 14.7% and 14.6%, respectively. That compares with
returns of 15.9% for the average of growth and income funds tracked by Lipper
Analytical Services and 20.6% for the S&P 500 Composite Stock Price Index. The
S&P 500 Index is an unmanaged index generally representative of the U.S. stock
market.
FOCUS ON LARGE-COMPANY SHARES
Most of the gains in the stock market came from shares of large companies,
with internationally oriented companies showing the best results. The Fund
focused on such companies, sticking close to the S&P 500 and large-company
issues with global markets. We increased the percentage of our total assets
invested in technology and health-care stocks by 1% to 2% each because those
sectors offered good values. We raised the money to make those investments by
decreasing our holdings in utilities and energy stocks, as growth prospects in
those sectors were not especially favorable.
The Fund matches the S&P 500 in terms of sector weightings. However, many
of the Fund's investments have relatively high dividend yields, which help
smooth out their returns over time. Those yields also could help to support the
Fund's shares in the event of a correction--which seems possible given the
strong gains among the most popular largecompany shares. In fact, the Fund's
beta stood at 0.80 on June 30, 1997--which suggests that the Fund is likely to
be only about 80% as volatile as the stocks that make up the S&P 500 Index.
OPPORTUNITIES AHEAD
We'll continue to invest in companies with strong growth prospects when
their shares appear undervalued based on factors such as price/earnings and
price/book ratios. We expect economic growth to remain in the 2% area during the
second half of this year. That should present opportunities in industrial areas
such as paper and precious metals. Already, many of those companies'
fundamentals have shifted to offer positive earnings outlooks--and their shares
in many cases are attractively valued.
THE KENT GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
-------------------
<S> <C>
Computer & Technology 11.1%
Consumer Staples 11.8%
Utilities 12.2%
Conglomerates 4.6%
Retail 6.5%
Oil/Energy 11.1%
Other 14.7%
Basic Materials 7.5%
Medical 8.3%
Finance 12.2%
</TABLE>
Portfolio composition is subject to change.
5
<PAGE> 8
PORTFOLIO REVIEWS
THE KENT GROWTH AND INCOME FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INVESTMENT CLASS
(inception: 11/2/92) (inception: 12/1/92)
------------------------------------------------------------------
<S> <C> <C>
One Year 25.85% 25.53%
Three Years 25.00% 24.76%
Life of Fund 17.93% 17.29%
</TABLE>
- --------------------------------------------------------------------------------
Growth of $10,000 Investment Comparison
<TABLE>
<CAPTION>
11/7/92 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Growth and Income Fund
Institutional Class Shares
Standard & Poor's Composite Index of 500 Stocks
</TABLE>
<TABLE>
<CAPTION>
12/1/92 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Growth and Income Fund
Investment Class Shares
Standard & Poor's Composite Index of 500 Stocks
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Standard & Poor's
Composite Index of 500 Stocks is an unmanaged index of 500 selected common
stocks, most of which are listed on the New York Stock Exchange. Total return is
based on changes in net asset value, assuming reinvestment of all dividends and
capital gains distributions. Certain fees were being waived. Had these waivers
not been in effect, total returns would have been lower.
6
<PAGE> 9
PORTFOLIO REVIEWS
THE KENT INTERNATIONAL GROWTH FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER, AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
The Kent International Growth Fund performed in line with the developed,
foreign markets represented by the Morgan Stanley Capital International Europe,
Australia and Far East (EAFE) Index, which is an unmanaged index generally
representative of foreign stocks, during the six-month period ended June 30. The
Fund's Institutional and Investment shares returned 11.2% and 11.0%,
respectively, for the period. Meanwhile, the EAFE Index returned 11.2%, and the
average of international funds tracked by Lipper Analytical Services returned
13.9%--aided in part by strong gains from many emerging markets in which our
Fund does not invest.
ERRATIC PERFORMANCE IN
FOREIGN MARKETS
The Fund invests in the stocks of individual countries based on the
countries' relative weightings in the EAFE Index and the countries' relative
gross domestic products (GDPs). During the period, the Fund's weighting remained
stable, with about 62% of its holdings in Europe and 38% in the Pacific Rim.
Economic growth in foreign markets was above average but sporadic during
the period, which led to uneven performance among international stocks. Common
stocks from Continental Europe gained 16.8% during the first six months of the
year (this excludes the United Kingdom). The Fund's 45% stake in those markets
helped performance relative to the EAFE index, with its smaller 38% weighting in
that region.
The Fund held only 17% of its assets in the United Kingdom, versus a 20%
weighting for the EAFE index. That also helped the Fund's relative performance,
since the U.K.'s stock market gained only 9.2% for the six months ended June 30.
The Pacific Rim underperformed slightly during the first half of the year,
returning only 7.2%. However, the Japanese market gained 23.7% during the second
quarter. The Fund shared in those gains thanks to its sizable stake in the
Japanese stock market -- 32.1% of assets at the end of the period.
GROWTH POTENTIAL
The Kent International Growth Fund remains a well-diversified fund, with
investments in 873 securities at the end of the recent period. We aim to reduce
country risk by maintaining country weightings close to the Fund's index, and to
lessen specific company risk by holding a broad range of companies.
That strategy has the potential to produce solid long-term gains. Moreover,
we believe that the outlook for developed countries' stock markets is positive,
due in part to attractive valuations that compare very favorably to those in the
U.S. stock market. Lower inflation, improving economic growth rates in many
countries, particularly those on the European continent, and solid earnings
prospects for firms in those regions offer three more reasons to consider
investing in foreign stock markets now.
International investing involves increased risk and volatility.
The Kent International Growth Fund
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
-------------------
<S> <C>
Japan 32.1%
Germany 11.7%
Other 18.3%
United Kingdom 16.8%
Netherlands 3.5%
Italy 4.2%
Switzerland 4.9%
France 8.5%
</TABLE>
Portfolio composition is subject to change.
9
<PAGE> 10
PORTFOLIO REVIEWS
THE KENT INTERNATIONAL GROWTH FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
(inception: 12/4/92) (inception: 12/4/92)
------------------------------------------------------------------
<S> <C> <C>
One Year 12.48% 12.21%
Three Years 10.14% 9.90%
Life of Fund 14.19% 13.92%
</TABLE>
Growth of $10,000 Investment Comparison With the Morgan Stanley Capital
International Europe, Australia and Far East Index, the Morgan Stanley Capital
International Europe Index and the Morgan Stanley Capital International Pacific
Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
12/4/92 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent International Growth Fund
Institutional Class Shares
Morgan Stanley Capital International Europe,
Australia and Far East Index
Morgan Stanley Capital International Europe Index
Morgan Stanley Capital International Pacific Index
</TABLE>
<TABLE>
<CAPTION>
12/4/92 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent International Growth Fund
Investment Class Shares
Morgan Stanley Capital International Europe,
Australia and Far East Index
Morgan Stanley Capital International Europe Index
Morgan Stanley Capital International Pacific Index
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Morgan Stanley
Capital International Europe, Australia and Far East Index is composed of a
sample of companies representative of the market structure of 20 European and
Pacific Basin countries. The Morgan Stanley Capital International Europe Index
and the Morgan Stanley Capital International Pacific Index are unmanaged indices
of stocks in their respective regions. Total return is based on changes in net
asset value, assuming reinvestment of all dividends and capitals gain
distributions. Certain fees were being waived. Had these waivers not been in
effect, total returns would have been lower. Investors are reminded that, while
investing globally can be rewarding, investments in foreign securities involve
certain risks and considerations in addition to those inherent with investing in
U.S. companies, such as currency fluctuations and political instability.
10
<PAGE> 11
PORTFOLIO REVIEWS
THE KENT SMALL COMPANY GROWTH FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER, AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
Although small-company shares did not keep up with large-company stocks
during the six months ended June 30, the Kent Small Company Growth Fund
performed very well relative to its benchmark. Some aggressively managed small
company funds suffered serious losses early in the period and have yet to
recover fully. But our value-oriented, well-diversified approach helped the Fund
weather the small company sector's turbulence and then delivered strong gains as
small company shares rallied in the second quarter.
The Fund's Institutional and Investment shares returned 15.7% and 15.7%,
respectively, for the six-month period ended June 30, 1997. Over the same
period, the average of small-cap growth funds tracked by Lipper Analytical
Services returned 6.0%, and the Russell 2000 Index returned 10.2%. The Russell
2000 Index is an unmanaged index that is generally representative of 2000
small-capitalization stocks in the U.S. stock market.
FINDING VALUE IN TECHNOLOGY STOCKS
As technology stocks faltered during the first quarter, many mutual funds
reduced their investment in the sector. But in March we increased the Fund's
technology weighting, and, consequently, the Fund participated strongly in the
technology rally that followed. The Fund's technology investments included
shares of companies such as electronics manufacturer Dynamics Corp.
The Fund continues to be broadly diversified, with a recent count of 682
securities in its portfolio. At the end of June, the Fund had an average beta of
0.90 when compared to the Russell 2000 Index, which indicates that the Fund is
only about 90% as volatile as the Index.
ATTRACTIVE OUTLOOK FOR
SMALL-COMPANY SHARES
We believe that the outlook for the small company sector is positive. In
particular, valuations of small company shares are attractive compared to those
of large company stocks. Moreover, we expect gains in small company stocks to
spread across the market into economically sensitive sectors such as capital
goods. We will continue to maintain a well-diversified portfolio in a wide range
of industries to take advantage of such opportunities.
Small-capitalization funds typically carry additional risks, since smaller
companies generally have a higher risk of failure and by definition, are not as
well established as "blue chip" companies. Historically, smaller companies'
stocks have experienced a greater degree of market volatility than average.
THE KENT SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1997
-------------------
<S> <C>
Finance 16.6%
Oil/Energy 5.8%
Industrial Products 7.1%
Utilities 5.6%
Other 18.9%
Retail 8.4%
Medical 5.5%
Basic Materials 7.6%
Computer & Technology 17.2%
Consumer Discretionary 7.3%
</TABLE>
Portfolio composition is subject to change.
7
<PAGE> 12
PORTFOLIO REVIEWS
THE KENT SMALL COMPANY GROWTH FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INVESTMENT CLASS
(inception: 11/2/92) (inception: 12/4/92)
------------------------------------------------------------------
<S> <C> <C>
One Year 22.71% 22.45%
Three Years 20.90% 20.68%
Life of Fund 18.17% 16.69%
</TABLE>
Growth of $10,000 Investment Comparison
With the Russell 2000 Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/2/92 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Small Company Growth Fund
Institutional Class Shares
Russell 2000 Index
</TABLE>
<TABLE>
<CAPTION>
12/4/92 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Small Company Growth Fund
Investment Class Shares
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Russell 2000
Index is an unmanaged index of the smallest 2,000 companies in the Russell 3000
Index, as ranked by total market capitalization. The Russell 2000 is widely
regarded in the industry to accurately capture the universe of small-cap stocks.
Total return is based on changes in net asset value, assuming reinvestment of
all dividends and capital gains distributions. Certain fees were being waived.
Had these waivers not been in effect, total returns would have been lower.
8
<PAGE> 13
PORTFOLIO REVIEWS
THE KENT INDEX EQUITY FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER, AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
Strong money flowing from retirement plans, such as 401(k) plans, and other
sources into common stocks and mutual funds bolstered the performance of the S&P
500 and the Fund during the six months ended June 30. Investors were willing to
pay for the anticipation of continued earnings growth. There was a great deal of
merger and acquisition activity, and many firms repurchased their shares.
Moreover, during the second quarter, fixed-income yields stabilized, and
inflation concerns abated. All of those factors also helped strengthen demand
for common stocks.
For the six months ended June 30, 1997, Institutional and Investment shares
of The Kent Index Equity Fund had total returns of 20.2% and 20.1%,
respectively. During the same period, the average of growth and income funds
tracked by Lipper Analytical Services returned 15.9%, and the Standard & Poor's
500 Composite Stock Price Index, an unmanaged index generally representative of
the U.S. stock market, had a total return of 20.6%.
In a low-inflation environment, investors are rewarding unit volume growth,
which translates into strong earnings growth. The combination of market
dominance and extensive worldwide distribution that only a handful of companies
possess has caused the bulk of the gains in the equity market to be confined to
a limited number of companies. In fact, it takes only 26 companies to account
for half of the gain in the S&P 500 so far this year.
Selected large-company issues that have enjoyed tremendous run-ups over the
past 30 months appear somewhat overvalued compared to international and
small-company stocks. But the combination of solid economic growth, stable
interest rates and low inflation is expected to preclude a major bear market.
Thus, any correction in the large-company sector might provide opportunities to
invest in stocks of large companies, especially those with exposure to overseas
markets.
THE KENT INDEX EQUITY FUND
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
-------------------
<S> <C>
Consumer Staples 13.0%
Oil/Energy 9.4%
Other 12.1%
Utilities 8.6%
Computer & Technology 14.2%
Basic Materials 5.2%
Finance 15.2%
Retail 5.5%
Conglomerates 5.4%
Medical 11.4%
</TABLE>
Portfolio composition is subject to change.
11
<PAGE> 14
PORTFOLIO REVIEWS
THE KENT INDEX EQUITY FUND
Average Annual Returns as of June 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
(inception: 11/2/92) (inception: 11/25/92)
------------------------------------------------------------------
<S> <C> <C>
One Year 33.87% 33.47%
Three Years 27.92% 27.65%
Life of Fund 19.54% 18.99%
</TABLE>
Growth of $10,000 Investment Comparison With the Standard & Poor's Composite
Index of 500 Stocks
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/2/92 - 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Index Equity Fund
Institutional Class Shares $23,787
Standard & Poor's Composite Index
of 500 Stocks $22,988
</TABLE>
<TABLE>
<CAPTION>
11/25/92 - 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Index Equity Fund
Investment Class Shares $23,021
Standard & Poor's Composite Index
of 500 Stocks $22,???
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Standard & Poor's
Composite Index of 500 Stocks is an unmanaged index of 500 selected common
stocks, most of which are listed on the New York Stock Exchange. Total return is
based on changes in net asset value assuming reinvestment of all dividends and
capital gains distributions. Certain fees were waived. Had these waivers not
been in effect total returns would have been lower.
12
<PAGE> 15
PORTFOLIO REVIEWS
THE KENT SHORT TERM BOND FUND
BY MITCHELL STAPLEY,
PORTFOLIO MANAGER
Bond yields rose during the first three months of 1997, in part because
investors were concerned that strong economic growth would boost inflation.
Those fears reflected strong gross domestic product (GDP) growth of 4.9% during
the first quarter. Yields began falling in April, but the yield on two-year
Treasury notes still finished the six month period at 6.04%, up from 5.94% at
the beginning of 1997.
Since bond prices decline when yields rise, even short-term securities
suffered modest price declines. The Fund's Institutional and Investment Shares
during the period ended June 30 delivered total returns of 2.6% and 2.5%,
respectively. By comparison, the Lehman Brothers 1-3 Year Government Bond Index,
an unmanaged index generally representative of the short-term government bond
market, posted a 2.9% total return.
STRONG AFTER-INFLATION YIELDS
Inflation remained low during the period, with the Producer Price Index
declining for six consecutive months. This environment of strong economic growth
and rising fixed income yields coupled with low inflation provided an
opportunity to extend the Fund's average maturity, locking in higher
after-inflation yields for shareholders. We extended the Fund's average maturity
from 2.5 years at the beginning of the period to around 2.7 years when yields
peaked in April. As yields declined during the rest of the period, the Fund's
average maturity fell to 2.4 years by the end of June.
The credit quality of the Fund's portfolio remained high, with an average
rating of AA2. Most of the Fund's new purchases were Treasury securities.
However, we added some high-quality corporate bonds to the portfolio in March,
when corporate bonds' yield advantage over Treasury securities temporarily
increased. At the end of the period, the Fund held roughly 70% of its assets in
corporate securities and 30% in U.S. government and agency obligations.
OPPORTUNITIES GOING FORWARD
We are late in the current economic cycle, and rising numbers of personal
bankruptcies, credit card defaults among consumers and late credit card payments
will work to hold back consumer spending in the months ahead.
That said, we do not expect a recession soon. Instead, we believe the
economy should grow at a moderate pace of perhaps 2.5 to 3.0 percent
(annualized) in the third and fourth quarters of 1997. Inflation is expected to
remain low, and interest rates probably will continue to decline. Bond yields
likely will fall further, perhaps to as low as 6.25% by the end of the year. The
Fund's average maturity is expected to remain longer than that of its index to
take advantage of falling bond yields.
What's more, the federal budget deficit should continue to shrink, meaning
the Treasury will not need to issue a large amount of new debt in the
marketplace. That lack of new supply also should support bond prices during the
second half of the year.
THE KENT SHORT TERM BOND FUND
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
<S> <C>
U.S. Government & Agency
Obilgations 31.4%
Corporate Notes & Bonds 61.5%
Cash Equivalents Net Other
Assets & Liabilities 7.1%
</TABLE>
Portfolio composition is subject to change.
THE KENT SHORT TERM BOND FUND+
SEC 30-Day Yields as of June 30, 1997
- -------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
<S> <C> <C>
5.64% 5.49%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 1997. Yield calculations represent past performance and will fluctuate.
13
<PAGE> 16
PORTFOLIO REVIEWS
THE KENT SHORT TERM BOND FUND+
Average Annual Returns as of June 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
(inception: 11/2/92) (inception: 12/4/92)
------------------------------------------------------------------
<S> <C> <C>
One Year 6.08% 5.89%
Three Years 5.99% 5.84%
Life of Fund 4.74% 4.59%
</TABLE>
Growth of $10,000 Investment Comparison
With the Lehman Brothers 1-3 Year Government Bond Index, Consumer Price Index
and 91-Day Treasury Bill
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/2/92 - 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Short Term Bond Fund
Institutional Class Shares $12,795
The Lehman Brothers 1 - 3
Year Government Bond Index $12,411
Consumer Price Index
91-Day Treasury Bill $12,391
</TABLE>
<TABLE>
<CAPTION>
12/4/92 - 12/31/92 12/31/93 12/31/94 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C>
The Kent Short Term Bond Fund $12,814
Investment Class Shares
The Lehman Brothers 1 - 3 $12,354
Year Government Bond Index
Consumer Price Index $12,281
91-Day Treasury Bill
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Lehman Brothers
1-3 Year Government Bond Index is an unmanaged index of U.S. Treasury issues and
publicly issued debt of U.S. Government agencies with maturities of one to three
years. The 91-day Treasury Bill return tracks the investment returns paid on
U.S. Treasury bills maturing in 91 days. The Consumer Price Index is an
unmanaged index measuring price increases in a standardized "market basket" of
consumer products. Total return is based on changes in net asset value, assuming
reinvestment of all dividends and capital gains distributions.
+ Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 5.61%
for Institutional Shares and 5.36% for Investment Shares.
14
<PAGE> 17
PORTFOLIO REVIEWS
THE KENT INTERMEDIATE BOND FUND
BY MITCHELL STAPLEY,
PORTFOLIO MANAGER
Bond yields rose during much of the recent six-month period due to strong
economic growth in the first quarter and an increase in interest rates by the
Federal Reserve in March. Rising yields caused intermediate bonds to lose value
during the period's first three months, although prices recovered somewhat
beginning in April when yields peaked and started to decline. The yield on the
10-year Treasury note started the six months at 6.42%, rose to as high as 6.98%
in mid-April and fell back to 6.45% at the end of June.
For the six months ended June 30, the Fund's Institutional and Investment
Shares posted total returns of 2.6% and 2.5%, respectively. That compares to a
2.8% return for the Fund's comparative index, The Lehman Brothers Intermediate
Government/Corporate Bond Index, an unmanaged index generally representative of
the government and corporate bond market.
AN EMPHASIS ON QUALITY
We increased the Fund's average maturity early in the period to take
advantage of the higher yields that were available. For example, we bought
Treasury bonds that mature in around 20 years during March and early April. That
boosted the Fund's total return as fixed income yields declined during the
second quarter. As yields fell, we shortened the average maturity from its peak
of 6.8 years in April to 5.8 years on June 30, 1997. We did that by selling off
longer term issues and replacing those investments with shorter term issues such
as 18-month Treasury securities.
The Fund maintained a very high average credit rating of AAA. However, when
stock prices suffered losses in March, corporate bond prices also declined. That
created attractive opportunities to invest in the corporate sector, which
performed better late in the period.
THE OUTLOOK
The Fund will continue to maintain a relatively long average maturity. We
believe that yields will continue to decline over the next few months if the
economy's annualized growth rate remains in the 2.5 to 3.0 percent range and if
inflation remains under control. In the event that yields temporarily increase,
we will extend the Fund's average maturity further to lock in higher yields for
shareholders. We will continue to hold government issues and selected
high-quality corporate issues. But corporate bonds as a group are expensive now,
so we will be very selective with our investments in that segment of the
market.
THE KENT INTERMEDIATE BOND FUND
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
-------------------
<S> <C>
Cash Equivalents
Net Other Assets & Liabilities 5.3%
Corporate Notes & Bonds 26.0%
U.S.Government & Agency Obligations 68.7%
</TABLE>
Portfolio composition is subject to change.
THE KENT INTERMEDIATE BOND FUND+
SEC 30-Day Yields as of June 30, 1997
- -------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
<S> <C> <C>
5.84% 5.59%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 1997. Yield calculations represent past performance and will
fluctuate.
15
<PAGE> 18
PORTFOLIO REVIEWS
THE KENT INTERMEDIATE BOND FUND+
Average Annual Returns as of June 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
(inception: 11/2/92) (inception: 11/25/92)
------------------------------------------------------------------
<S> <C> <C>
One Year 6.94% 6.67%
Three Years 7.24% 7.02%
Life of Fund 5.78% 5.61%
</TABLE>
Growth of $10,000 Investment Comparison
With the Lehman Brothers Intermediate Government/Corporate Bond Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/2/92 11/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Intermediate Bond Fund
Institutional Class Shares $ 12,998
The Lehman Brothers Intermediate
Government/Corporate Bond Index $ 13,279
</TABLE>
<TABLE>
<CAPTION>
11/2/92 11/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C> <C>
The Kent Intermediate Bond Fund $12,864
Investment Class Shares
The Lehman Brothers Intermediate
Government/Corporate Bond Index $13,329
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Lehman Brothers
Intermediate Government/Corporate Bond Index is an unmanaged index comprised of
U.S. Treasury issues, publicly issued debt of U.S. Government agencies,
corporate debt guaranteed by the U.S. Government and all publicly issued, fixed
rate, nonconvertible investment-grade dollar-denominated, SEC-registered
corporate debt. Total return is based on changes in net asset value, assuming
reinvestment of all dividends and capital gains distributions.
+ Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 5.81%
for Institutional Shares and 5.56% for Investment Shares.
16
<PAGE> 19
PORTFOLIO REVIEWS
THE KENT INCOME FUND
BY MITCHELL STAPLEY,
PORTFOLIO MANAGER
As a long-term bond fund designed to produce a higher level of income, The
Kent Income Fund maintains a relatively long average maturity to provide
shareholders with a high level of current yield. As a result, the Fund may
provide strong positive total returns when yields decline. By the same token,
the Fund's returns may lag when yields rise. The yield on the 30-year Treasury
bond rose from 6.68% at the beginning of 1997 to 7.17% in April, before
declining to 6.74% at the end of June. The Fund's Institutional and Investment
Shares gained 2.4% and 2.2%, respectively, for the period ended June 30, 1997.
That compares to a 2.5% return for the Lehman Brothers Long Government/Corporate
Bond Index., an unmanaged index generally representative of government and
corporate bonds that have longer maturities.
FINDING OPPORTUNITIES
IN SEVERAL SECTORS
As bond yields rose, we extended the Fund's average maturity from 14.2
years on January 1 to 14.9 years in mid-April. As yields began falling during
the second quarter, we reduced the Fund's average maturity to 14.1 years, where
it stood at the end of the period. We invested primarily in Treasury issues
during the period, maintaining a very high average credit rating of AAA for the
fund. As illustrated in the pie chart, as of June 30, the Fund held roughly
two-thirds of its assets in U.S. Government and agency obligations, with almost
one-third in corporate issues and the remainder in cash.
We found opportunities in new securities issued by high-quality banks such
as HSBC America and Great Western. Also, we purchased some additional corporate
issues in March, when a decline in stock prices depressed the corporate bond
sector. Yields on selected corporate bonds became attractive in that environment
for long-term investors.
LOOKING AHEAD
In an attempt to provide a high level of income, the Fund maintains a
relatively long average maturity. We think that economic growth will remain in
the 2.5 to 3.0 percent range over the next few quarters and that inflation will
remain low. We believe that in such an environment, bond yields may continue to
decline, and bond prices should rise, helping to boost the Fund's total return.
We will maintain the Fund's high credit quality and will look for opportunities
to purchase corporate issues when their yields become attractive relative to
Treasury yields.
THE KENT INCOME FUND
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
-------------------
<S> <C>
U.S. Government & Agency Obligations 64.1%
Corporate Notes & Bonds 32.0%
Cash Equivalents Net Other Assets & Liabilities 3.9%
</TABLE>
Portfolio composition is subject to change.
THE KENT INCOME FUND+
SEC 30-Day Yields as of June 30, 1997
- -------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
<S> <C> <C>
6.26% 6.00%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 1997. Yield calculations represent past performance and will
fluctuate.
17
<PAGE> 20
Portfolio Reviews
THE KENT INCOME FUND+
Average Annual Returns as of June 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
(inception: 3/17/95) (inception: 3/17/95)
-------------------------------------------------------------------
<S> <C> <C>
One Year 7.93% 7.90%
Life of Fund 7.94% 7.70%
</TABLE>
Growth of $10,000 Investment Comparison
With the Lehman Brothers Government/Corporate Bond Index
and the Lehman Brothers Long Government/Corporate Bond Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3/17/95 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C>
The Kent Income Fund
Institutional Class Shares $11,915
The Lehman Brothers
Government/Corporate Bond Index $12,008
The Lehman Brothers Long
Government/Corporate Bond Index $12,514
</TABLE>
<TABLE>
<CAPTION>
3/17/95 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C>
The Kent Income Fund
Investment Class Shares $11,855
The Lehman Brothers
Government/Corporate Bond Index $12,008
The Lehman Brothers Long
Government/Corporate Bond Index $12,514
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Lehman Brothers
Government/Corporate Bond Index and the Lehman Brothers Long
Government/Corporate Bond Index are unmanaged indices comprised of U.S. Treasury
issues, debt of U.S. Government agencies, corporate debt guaranteed by the U.S.
Government and all publicly issued, fixed-rate, nonconvertible investment-grade
dollar-denominated, SEC-registered corporate debt. Total return is based on
changes in net asset value, assuming the reinvestment of dividends and capital
gains distributions.
+ Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 6.23%
for Institutional Shares and 5.97% for Investment Shares.
18
<PAGE> 21
PORTFOLIO REVIEWS
THE KENT LIMITED TERM TAX-FREE FUND
BY ALLAN J. MEYERS,
CO-PORTFOLIO MANAGER, AND
MICHAEL J. MARTIN,
CO-PORTFOLIO MANAGER
During the six months ended June 30, we reduced the Fund's average maturity
target from between one and five years to between one and three years. Over that
period, the Fund's Institutional and Investment Shares returned 2.1% and 2.0%,
respectively. That compares to the total return of 2.16% for the Lehman Brothers
Three-Year General Obligation Municipal Bond Index, an unmanaged index comprised
of municipal bonds which have an average maturity of around three years.
ADOPTING A SHORTER AVERAGE MATURITY
The Fund's average maturity began the year at 3.9 years. In February
however, we changed the average maturity's target to the one- to three-year
sector of the yield curve. The Fund seeks to provide a higher yield than a money
market fund, with less volatility than a fund with a longer average maturity. By
the end of June, the average maturity of the Fund was 2.8 years.
We purchased some higher yielding issues during the period, reflecting our
goal to boost the Fund's overall income level. During the period, the Fund
maintained a AA1 average credit quality.
GOING FORWARD
We don't expect yields on tax-free securities to rise or fall sharply
during the second half of 1997. If the Federal Reserve does raise interest rates
before the end of the year, the Fund will take the opportunity to pick up
additional income by purchasing higher yielding securities. If rates decline
however, the Fund will benefit from its slightly long average maturity relative
to its benchmark.
For now, we are maintaining the Fund's average maturity between 2.7 and 3.0
years, close to the top of its maturity range. We will continue to invest in
carefully chosen higher yielding securities that have the potential to offer
additional income without jeopardizing the Fund's strong credit quality.
The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
THE KENT LIMITED TERM TAX-FREE FUND
<TABLE>
<CAPTION>
Distribution of Net Assets
as of June 30, 1997
-------------------
<S> <C>
Other 10.4%
Mountain 8.6%
Pacific 6.5%
South 22.7%
North Central 37.4%
East 14.4%
</TABLE>
Portfolio composition is subject to change.
THE KENT LIMITED TERM TAX-FREE FUND
Tax Equivalent Yields+ as of June 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Tax Bracket Institutional Class Investment Class
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
28.0% 5.14% 4.93%
31.0% 5.36% 5.14%
36.0% 5.78% 5.55%
39.6% 6.13% 5.88%
</TABLE>
+Based on an SEC 30-day yield on 6/30/97 of 3.70% for the Institutional Class
and 3.55% for the Investment Class. SEC 30-day yield is computed based on net
income during the 30-day period ended June 30, 1997. Yield calculations
represent past performance and will fluctuate.
Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 3.68%
for Institutional Shares and 3.42% for Investment Shares.
19
<PAGE> 22
PORTFOLIO REVIEWS
The Kent Limited Term Tax-Free Fund
Average Annual Returns as of June 30, 1997
- ------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Investment Class
(inception: 9/1/94) (inception: 11/1/94)
------------------------------------------------------------------
<S> <C> <C>
One Year 4.94% 4.80%
Life of Fund 4.64% 5.21%
</TABLE>
Growth of $10,000 Investment Comparison
With the Lehman Brothers One-Year General Obligation Municipal Bond Index
and the Lehman Brothers Three-Year General Obligation Municipal Bond Index
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
9/1/94 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C>
The Kent Limited Term Tax-Free Fund
Institutional Class Shares $11,371
The Lehman Brothers One-Year
General Obligation Municipal Bond Index
The Lehman Brothers Three-Year
General Obligation Municipal Bond Index
</TABLE>
<TABLE>
<CAPTION>
11/1/94 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C>
The Kent Limited Term Tax-Free Fund
Investment Class Shares $11,449
The Lehman Brothers One-Year
General Obligation Municipal Bond Index
The Lehman Brothers Three-Year
General Obligation Municipal Bond Index
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ
based on differences in expenses for each class of shares. Return figures and
investment values are quoted after deducting all expenses. The Lehman Brothers
One-Year General Obligation Municipal Bond Index and the Lehman Brothers
Three-Year General Obligation Municipal Bond Index are unmanaged indices of debt
instruments issued by municipalities. Total return is based on changes in net
asset value, assuming reinvestment of all dividends and capital gains
distributions.
20
<PAGE> 23
PORTFOLIO REVIEWS
THE KENT INTERMEDIATE TAX-FREE FUND
BY ALLAN J. MEYERS,
PORTFOLIO MANAGER
During the six months ended June 30, we pursued our typical strategy:
increase the Fund's average maturity while yields are rising, to lock in higher
yields at attractive prices. Second, reduce the maturity while yields are
falling and bond prices are rising to less attractive levels.
The strategy kept us busy, since yields did rise and fall considerably, over
the six-month period, based on changing opinions about the potential for higher
inflation. For example, the yield on a 10-year AAA-rated general obligation
municipal bond began the year at 4.80%, rose to a high of 5.15% by the end of
March and fell back to 4.85% by the end of June.
For the six months ended June 30, the Fund's Institutional and Investment
Shares posted total returns of 2.4% and 2.3%, respectively. That compares to a
total return of 2.3% for the Lehman Brothers Five-Year General Obligation
Municipal Bond Index, an unmanaged index of municipal bonds with maturities
of around five years.
OPPORTUNITIES IN A VOLATILE MARKET
At the beginning of the year, the Fund's average maturity stood at 7.8
years. We increased that average maturity to a high of 8.1 years as bond yields
rose through the end of April. As yields declined in May and June, we decreased
the Fund's average maturity to 7.4 years by the end of the period.
While yields were rising, we bought securities in the longer end of the
yield curve, such as an MBIA-insured Utah Water Finance Agency bond yielding
5.60%, which matures in October 2017. We also purchased securities in the 10-to
15-year range, such as Pennsylvania State Higher Education Drexel University
bonds, which mature in 2006 and 2007.
The Fund's average credit rating remains high at AA. This is a reflection
of our investment style. We attempt to deliver consistently strong long-term
returns by holding high-quality bonds, rather than subjecting our shareholders
to unwanted credit risks.
LOOKING AHEAD
Over the next six months, we expect low inflation with a steady economic
growth rate of around 2.5 to 3.0 percent. If the Federal Reserve decides to
raise interest rates before the end of the year as a precaution against
inflation, we will pursue bonds in the 10- to 15-year maturity sector of the
yield curve, purchasing high-quality, liquid bonds. If the Federal Reserve does
not raise interest rates, our portfolio's relatively long 7.4-year average
maturity should help its performance, since longer term issues generally provide
better returns in an environment of stable or falling yields.
<TABLE>
<CAPTION>
THE KENT INTERMEDIATE TAX-FREE FUND
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1997
- -------------------
<S> <C>
North Central 31.4%
East 19.4%
Other 10.6%
Mountain 2.8%
Pacific 12.4%
South 23.4%
Portfolio composition is subject to change.
</TABLE>
The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
<TABLE>
<CAPTION>
THE KENT INTERMEDIATE TAX-FREE FUND
TAX EQUIVALENT YIELDS+ AS OF JUNE 30,1997
- -----------------------------------------
Tax Bracket Institutional Class Investment Class
-------------------------------------------------------------------
<C> <C> <C>
28.0% 5.75% 5.40%
31.0% 6.00% 5.64%
36.0% 6.47% 6.08%
39.6% 6.85% 6.44%
+ Based on an SEC 30-day yield on 6/30/97 of 4.14% for the Institutional Class
and 3.89% for the Investment Class. SEC 30-day yield is computed based on net
income during the 30-day period ended June 30, 1997. Yield calculations
represent past performance and will fluctuate.
Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 4.12%
for Institutional Shares and 3.86% for Investment Shares.
</TABLE>
21
<PAGE> 24
PORTFOLIO REVIEWS
<TABLE>
<CAPTION>
THE KENT INTERMEDIATE TAX-FREE FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1997
- ------------------------------------------
Institutional Class Investment Class
(inception: 12/16/92) (inception: 12/18/92)
---------------------------------------------------------------------------------
<S> <C> <C>
One Year 6.34% 6.07%
Three Years 6.20% 5.96%
Life of Fund 5.31% 5.13%
</TABLE>
<TABLE>
<CAPTION>
GROWTH OF $10,000 INVESTMENT COMPARISON
WITH THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION MUNICIPAL BOND INDEX
AND THE LEHMAN BROTHERS FIVE-YEAR GENERAL OBLIGATION MUNICIPAL BOND INDEX
- -------------------------------------------------------------------------------
12/16/92-12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C>
The Lehman Brothers Three-Year General
Obligation Municipal Bond Index $12,792
The Kent Intermediate Tax-free Fund
Institutional Class Shares $12,647
The Lehman Brothers Five-Year General
Obligation Municipal Bond Index $12,430
<CAPTION>
12/16/92-12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C>
The Lehman Brothers Three-Year General
Obligation Municipal Bond Index $12,792
The Kent Intermediate Tax-free Fund
Investment Class Shares $12,646
The Lehman Brothers Five-Year General
Obligation Municipal Bond Index $12,430
<FN>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be
worth more or less than the original cost. Performance for each class will
differ based on differences in expenses for each class of shares. Return
figures and investment values are quoted after deducting all expenses. The
Lehman Brothers Three-Year General Obligation Municipal Bond Index and the
Lehman Brothers Five-Year General Obligation Municipal Bond Index are
unmanaged indices of debt instruments issued by municipalities. Total return
is based on changes in net asset value, assuming reinvestment of all dividends
and capital gains distributions.
</TABLE>
22
<PAGE> 25
PORTFOLIO REVIEWS
THE KENT TAX-FREE INCOME FUND
BY ALLAN J. MEYERS,
PORTFOLIO MANAGER
The tax-exempt bond market was relatively volatile during the six months
that ended June 30. At the beginning of the year, investors were concerned that
the Federal Reserve would have to increase interest rates to ward off inflation.
Yields in the municipal and taxable bond markets rose during this time.
The Federal Reserve did increase the Federal funds rate in March, boosting
it from 5.25% to 5.5%. By the second quarter, however, there were signs that the
economy's growth rate was beginning to slow. Retail sales and the Producer Price
Index both declined, and inflation fears abated. As a result, bond yields
declined by the end of June. The yield on a 30-year AAA rated general obligation
municipal bond started the year at 5.45% and rose to 5.75% by the end of March,
then declined to 5.45% at the end of the period.
For the six months ended June 30, total returns for the Fund's
Institutional and Investment Shares were 2.8% and 2.8%, respectively. That
compares with a total return of 3.2% for the Lehman Brothers Municipal Bond
Index, an unmanaged index generally representative of municipal bonds.
TAKING PROFITS IN LONG-TERM ISSUES
We increased the Fund's average maturity from 12.9 years at the beginning
of 1997 to a high of 13.7 years in April to take advantage of rising yields.
When yields fell during May and June, we ultimately reduced the Fund's average
maturity to 12.3 years in order to take profits on the longer term issues we had
purchased earlier.
When bond yields were rising, we bought higher yielding bonds, such as an
FGIC-insured Texas State Turnpike Authority bond due January 2023 yielding
5.75%. We don't necessarily limit our holdings to insured bonds, but such
investments reflect our orientation toward high-quality issues. The Fund's AA
average credit rating remains unchanged from the end of 1996.
MARKET OUTLOOK
We expect inflation to remain low during the second half of 1997. We also
expect the economy's growth rate to remain steady at around 2.5 to 3.0 percent.
The Federal Reserve may raise interest rates another 25 basis points before the
end of the year. But any such move would be more an insurance policy against
inflation than a significant tightening of monetary policy.
Based on that outlook, we expect the benchmark 30-year AAA-rated general
obligation municipal bond yield to remain within a trading range of 5.2% and 6%.
When yields move toward the lower end of that range, we will systematically
reduce the Fund's average maturity. When yields rise toward 6%, we will increase
the average maturity of the Fund to capture those higher yields for our
shareholders.
The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
<TABLE>
<CAPTION>
THE KENT TAX-FREE INCOME FUND
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1997
- -------------------
<S> <C>
North Central 41.3%
East 11.9%
Other 6.1%
Mountain 7.9%
Pacific 15.3%
South 17.5%
Portfolio composition is subject to change.
</TABLE>
<TABLE>
<CAPTION>
THE KENT TAX-FREE INCOME FUND
TAX EQUIVALENT YIELDS+ AS OF JUNE 30, 1997
- ------------------------------------------
Tax Bracket Institutional Class Investment Class
------------------------------------------------------------------
<C> <C> <C>
28.0% 6.04% 5.68%
31.0% 6.30% 5.93%
36.0% 6.80% 6.39%
39.6% 7.20% 6.77%
+ Based on an SEC 30-day yield on 6/30/97 of 4.35% for the Institutional Class
and 4.09% for the Investment Class. SEC 30-day yield is computed based on net
income during the 30-day period ended June 30, 1997. Yield calculations
represent past performance and will fluctuate
Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 4.32%
for Institutional Shares and 4.07% for Investment Shares.
</TABLE>
23
<PAGE> 26
<TABLE>
<CAPTION>
PORTFOLIO REVIEWS
THE KENT TAX-FREE INCOME FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30,1997
- -----------------------------------------
Institutional Class Investment Class
(inception: 3/17/95) (inception: 4/1/95)
----------------------------------------------------------------
<S> <C> <C>
One Year 7.52% 7.31%
Life of Fund 6.71% 6.51%
</TABLE>
<TABLE>
<CAPTION>
GROWTH OF $10,000 INVESTMENT COMPARISON WITH THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
- -------------------------------------------------------------------------------------
3/17/95 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C>
THE LEHMAN BROTHERS MUNCIPAL BOND INDEX $11,822
THE KENT TAX-FREE INCOME FUND INSTITUTIONAL
CLASS SHARES $11,586
- ------------------------------------------------------------------------------------------------
<CAPTION>
4/1/95 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C>
THE LEHMAN BROTHERS MUNCIPAL BOND INDEX $11,822
THE KENT TAX-FREE INCOME FUND INSTITUTIONAL
CLASS SHARES $11,526
- ------------------------------------------------------------------------------------------------
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be
worth more or less than the original cost. Performance for each class will
differ based on differences in expenses for each class of shares. Return
figures and investment values are quoted after deducting all expenses. The
Lehman Brothers Municipal Bond Index is an unmanaged index of general
obligation municipal debt instruments. Total return is based on changes in net
asset value, assuming reinvestment of all dividends and capital gains
distributions.
</TABLE>
24
<PAGE> 27
PORTFOLIO REVIEWS
THE KENT MICHIGAN MUNICIPAL BOND FUND
BY ALLAN J. MEYERS,
PORTFOLIO MANAGER
The supply of municipal bonds in Michigan was very tight during the first
few months of 1997. But those conditions changed toward the end of the six-month
period, as we saw more and more new issues coming to the market. This put some
downward pressure on prices, providing good investment opportunities for the
Fund. Michigan's economy also continues to be very strong. For example, the
state's unemployment level in May fell to 4%--the lowest monthly number since
1970.
For the six months ended June 30, the Fund's Institutional and Investment
Shares delivered total returns of 2.1% and 2.0%, respectively. That compares to
a 2.2% total return for the Lehman Brothers Three-Year General Obligation
Municipal Bond Index, an unmanaged index generally representative of
government-backed municipal bonds with maturities of around three years.
EXTENDING THE AVERAGE MATURITY
During the first half of the year, we modified the way we manage this Fund.
We will now maintain the Fund's average maturity between three and five years,
rather than between one and five years, to give shareholders an opportunity to
earn higher income levels in this segment of the market.
We extended the Fund's average maturity slightly, from 3.8 years at the
beginning of the year to a high of 4.4 years in April, taking advantage of
rising bond yields to lock in higher yields for shareholders. We then reduced
the average maturity to 4.2 years by the end of June as yields fell and bond
prices rose to less attractive levels.
As the supply of new issues grew, we bought securities such as a Michigan
State Hospital Finance Agency Mercy Health Services Bond, which offered an
extremely attractive 5.45% yield.
LOOKING AHEAD
We expect new bond issuance in Michigan to increase during the second half
of the year, with an especially large number of new school bond issues. The new
issuances will offer us additional opportunities to purchase high-quality
Michigan municipal bonds. Meanwhile, if fixed-income yields are stable, we
probably will not reduce the Fund's average maturity much below four years. If
yields increase and bond prices fall, we will be inclined to move the average
maturity out closer to the five-year mark to take advantage of the higher
yields.
The Fund's income may be subject to the federal alternative minimum tax and
to certain state and local taxes.
<TABLE>
<CAPTION>
THE KENT MICHIGAN MUNICIPAL BOND FUND
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1997
- -------------------
<S> <C>
Michigan Municipal
Securities 99.5%
Cash Equivalents & Net Other Assets
& Liabilities 0.5%
Portfolio composition is subject to change.
</TABLE>
<TABLE>
<CAPTION>
THE KENT MICHIGAN MUNICIPAL BOND FUND
TAX EQUIVALENT YIELDS+ AS OF JUNE 30, 1997
- ------------------------------------------
Tax Bracket Institutional Class Investment Class
-----------------------------------------------------------------
<C> <C> <C>
28.0% 5.96% 5.75%
31.0% 6.22% 6.00%
36.0% 6.70% 6.47%
39.6% 7.10% 6.85%
+ Based on an SEC 30-day yield on 6/30/97 of 4.29% for the Institutional Class
and 4.14% for the Investment Class. SEC 30-day yield is computed based on net
income during the 30-day period ended June 30, 1997. Yield calculations
represent past performance and will fluctuate.
Certain fees were being waived. Had these waivers not been in effect, total
return would have been lower, and the 30-day SEC yields would have been 4.26%
for Institutional Shares and 4.01% for Investment Shares.
</TABLE>
25
<PAGE> 28
PORTFOLIO REVIEWS
<TABLE>
<CAPTION>
THE KENT MICHIGAN MUNICIPAL BOND FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1997
- ------------------------------------------
Institutional Class Investment Class
(inception: 5/3/93) (inception: 5/11/93)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year 4.96% 4.80%
Three Years 4.74% 4.60%
Life of Fund 4.10% 3.92%
</TABLE>
<TABLE>
<CAPTION>
GROWTH OF $10,000 INVESTMENT COMPARISON
WITH THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION MUNICIPAL BOND INDEX
- -------------------------------------------------------------------------------
5/3/93 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C>
THE LEHMAN BROTHERS THREE-YEAR GENERAL
OBLIGATION MUNICIPAL BOND INDEX $13.122
THE KENT MICHIGAN MUNICIPAL BOND FUND
INSTITUTIONAL CLASS SHARES $11,820
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
5/11/93 12/31/93 12/31/94 12/31/95 12/31/96 6/30/97
<S> <C> <C> <C> <C> <C> <C>
THE LEHMAN BROTHERS THREE-YEAR GENERAL
OBLIGATION MUNICIPAL BOND INDEX $13.122
THE KENT MICHIGAN MUNICIPAL BOND FUND
INVESTMENT CLASS SHARES $11,720
- ----------------------------------------------------------------------------------------------------------------
<FN>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate, so that shares, when redeemed, may be
worth more or less than the original cost. Performance for each class will
differ based on differences in expenses for each class of shares. Return
figures and investment values are quoted after deducting all expenses. The
Lehman Brothers Three-Year General Obligation Municipal Bond Index is an
unmanaged index of debt obligations issued by municipalities. Total return is
based on changes in net asset value, assuming reinvestment of dividends and
capital gains distributions.
</TABLE>
26
<PAGE> 29
The Kent GROWTH AND INCOME FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS -- 96.7%
AEROSPACE/DEFENSE EQUIPMENT -- 1.5%
195,000 Raytheon Co..................... $ 9,945,000
------------
AEROSPACE & DEFENSE -- 1.4%
48,374 Boeing Co....................... 2,566,845
50,000 Lockheed Martin Corp............ 5,178,125
20,000 Northrop Grumman Corp........... 1,756,250
------------
9,501,220
------------
APPLIANCES -- HOUSEHOLD -- 1.0%
140,000 Maytag Corp..................... 3,657,500
60,400 Whirlpool Corp.................. 3,295,575
------------
6,953,075
------------
AUTOMOTIVE -- DOMESTIC -- 2.2%
121,500 Ford Motor Co................... 4,586,625
181,100 General Motors Corp............. 10,085,006
------------
14,671,631
------------
AUTO/TRUCK -- ORIGINAL EQUIPMENT -- 0.2%
61,700 Navistar International Corp.*... 1,064,325
------------
AUTO/TRUCK -- REPLACEMENT PARTS -- 0.4%
30,000 Echlin, Inc..................... 1,080,000
52,950 Genuine Parts Co................ 1,793,681
------------
2,873,681
------------
BANKS -- MAJOR REGIONAL -- 4.6%
81,200 Banc One Corp................... 3,933,125
36,500 BankBoston Corp................. 2,630,281
48,000 CoreStates Financial Corp....... 2,580,000
15,000 First Union Corp................ 1,387,500
30,400 KeyCorp......................... 1,698,600
47,500 National City Corp.............. 2,493,750
50,000 Norwest Corp.................... 2,812,500
115,900 PNC Bank Corp................... 4,824,338
34,300 Republic NY Corp................ 3,687,250
76,900 Wachovia Corp................... 4,484,231
------------
30,531,575
------------
BANKS -- MONEY CENTER -- 2.5%
111,700 Bankers Trust New York Corp..... 9,717,900
63,100 J.P. Morgan & Co................ 6,586,063
------------
16,303,963
------------
BEVERAGES -- ALCOHOLIC -- 1.5%
124,700 Anheuser-Busch Cos., Inc........ 5,229,606
120,600 Seagram Co., Ltd................ 4,854,150
------------
10,083,756
------------
BUILDING PRODUCTS -- WOOD -- 0.7%
160,500 Louisiana-Pacific Corp.......... 3,390,562
29,600 Weyerhaeuser Co................. 1,539,200
------------
4,929,762
------------
BUILDING -- RESIDENTIAL/COMMERCIAL -- 0.1%
22,300 Pulte Corp...................... 770,744
------------
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CABLE TELEVISION -- 0.2%
87,700 Tele-Communications, Inc., Class
A*.............................. $ 1,304,538
------------
CHEMICALS -- DIVERSIFIED -- 1.1%
43,500 Dow Chemical Co................. 3,789,938
55,900 PPG Industries, Inc............. 3,249,187
------------
7,039,125
------------
CHEMICALS -- SPECIALTY -- 0.4%
55,100 Great Lakes Chemical Corp....... 2,885,862
------------
COMPUTERS -- LOCAL AREA NETWORK -- 0.9%
110,500 Cabletron Systems, Inc.*........ 3,128,531
378,900 Novell, Inc.*................... 2,628,619
------------
5,757,150
------------
COMPUTERS -- MICRO -- 0.4%
186,300 Apple Computer, Inc.*........... 2,654,775
------------
COMPUTERS -- MINI -- 0.9%
131,900 Digital Equipment Corp.*........ 4,674,206
100,000 Silicon Graphics, Inc.*......... 1,500,000
------------
6,174,206
------------
COMPUTERS -- SERVICES -- 0.8%
118,100 Automatic Data Processing,
Inc............................. 5,550,700
------------
COMPUTERS -- STORAGE DEVICES -- 0.5%
103,800 Seagate Technology, Inc.*....... 3,652,463
------------
CONSUMER PRODUCTS -- MISCELLANEOUS -- 0.7%
111,900 American Greetings Corp., Class
A............................... 4,154,287
10,000 Jostens, Inc.................... 263,750
------------
4,418,037
------------
CONTAINERS -- METAL & GLASS -- 0.2%
40,000 Ball Corp....................... 1,202,500
------------
DIVERSIFIED OPERATIONS -- 4.4%
30,000 FMC Corp.*...................... 2,383,125
90,200 General Electric Co............. 5,896,825
72,800 Minnesota Mining & Manufacturing
Co.............................. 7,425,600
99,700 Rockwell International Corp..... 5,882,300
86,700 Tenneco, Inc.................... 3,917,756
59,200 Textron, Inc.................... 3,929,400
------------
29,435,006
------------
ELECTRONIC COMPONENTS --
SEMICONDUCTORS -- 0.4%
18,600 Intel Corp...................... 2,637,712
------------
ELECTRONIC -- CONNECTORS -- 0.6%
73,500 Thomas & Betts Corp............. 3,863,344
------------
ELECTRONIC COMPONENTS --
MISCELLANEOUS -- 0.0%
1,800 Raychem Corp.................... 133,875
------------
FINANCIAL -- INVESTMENT BROKERS -- 0.6%
70,000 Salomon, Inc.................... 3,893,750
------------
</TABLE>
Continued
27
<PAGE> 30
The Kent GROWTH AND INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL -- LEASING COMPANY -- 0.1%
30,000 Ryder Systems, Inc.............. $ 990,000
------------
FINANCIAL -- MORTGAGE &
RELATED SERVICES -- 0.3%
50,000 Green Tree Financial Corp....... 1,781,250
------------
FINANCIAL -- SAVINGS & LOAN -- 0.3%
40,000 H.F. Ahmanson & Co.............. 1,720,000
------------
FOOD ITEMS -- WHOLESALE -- 0.9%
153,500 Fleming Cos., Inc............... 2,763,000
101,000 Supervalu, Inc.................. 3,484,500
------------
6,247,500
------------
FOOD -- FLOUR & GRAIN -- 0.8%
238,900 Archer-Daniels-Midland Co....... 5,614,150
------------
FOOD -- DIVERSIFIED -- 3.5%
20,000 CPC International, Inc.......... 1,846,250
71,100 General Mills, Inc.............. 4,630,388
57,700 Kellogg Co...................... 4,940,562
29,900 Quaker Oats Co.................. 1,341,763
58,300 Sara Lee Corp................... 2,426,737
37,300 Unilever NV, ADR................ 7,984,531
------------
23,170,231
------------
GLASS PRODUCTS -- 0.3%
30,600 Corning, Inc.................... 1,702,125
------------
INSURANCE -- BROKERS -- 0.6%
55,400 Marsh & McLennan Cos., Inc...... 3,954,175
------------
INSURANCE -- LIFE -- 0.9%
58,887 American General Corp........... 2,811,854
40,000 Torchmark Corp.................. 2,850,000
------------
5,661,854
------------
INSURANCE -- MULTI-LINE -- 0.8%
32,000 Aetna, Inc...................... 3,276,000
17,100 MBIA, Inc....................... 1,929,094
------------
5,205,094
------------
INSURANCE -- PROPERTY & CASUALTY -- 1.4%
18,300 General Re Corp................. 3,330,600
31,300 Lincoln National Corp........... 2,014,937
20,000 Safeco Corp..................... 933,750
115,000 USF&G Corp...................... 2,772,000
------------
9,051,287
------------
INSTRUMENTS -- CONTROL -- 0.8%
127,300 General Signal Corp............. 5,553,463
------------
INSTRUMENTS -- SCIENTIFIC -- 0.4%
123,100 EG&G, Inc....................... 2,769,750
------------
MACHINE TOOLS & RELATED PRODUCTS -- 0.5%
120,000 Cincinnati Milacron, Inc........ 3,112,500
------------
MACHINERY -- ELECTRICAL -- 0.2%
13,000 W.W. Grainger, Inc.............. 1,016,437
------------
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MACHINERY -- FARM -- 0.1%
15,700 Briggs & Stratton Corp.......... $ 785,000
------------
MACHINERY -- GENERAL INDUSTRIAL -- 0.4%
55,100 Cooper Industries, Inc.......... 2,741,225
------------
MEDICAL INSTRUMENTS -- 0.5%
128,000 Biomet, Inc..................... 2,384,000
20,000 St. Jude Medical, Inc........... 780,000
------------
3,164,000
------------
MEDICAL PRODUCTS -- 1.4%
104,700 Allergan, Inc................... 3,330,769
52,000 Baxter International, Inc....... 2,717,000
83,300 Mallinckrodt, Inc............... 3,248,700
------------
9,296,469
------------
MEDICAL -- DRUGS -- 4.2%
73,700 Abbott Laboratories............. 4,919,475
113,800 Alza Corp.*..................... 3,293,088
177,400 Bristol-Myers Squibb Co......... 14,369,400
144,500 Pharmacia & Upjohn, Inc......... 5,021,375
------------
27,603,338
------------
MEDICAL -- HEALTH MAINTENANCE
ORGANIZATION -- 0.3%
86,100 Humana, Inc.*................... 1,991,063
------------
MEDICAL -- HOSPITALS -- 0.5%
80,000 Columbia/HCA Healthcare Corp.... 3,145,000
------------
MEDICAL/DENTAL SUPPLIES -- 1.2%
84,200 Bausch & Lomb, Inc.............. 3,967,925
107,600 C.R. Bard, Inc.................. 3,907,225
------------
7,875,150
------------
METAL -- GOLD -- 0.9%
128,400 Barrick Gold Corp............... 2,824,800
150,700 Echo Bay Mines Ltd.............. 847,688
50,500 Newmont Mining Corp............. 1,969,500
------------
5,641,988
------------
METAL -- MISCELLANEOUS -- 0.3%
76,800 Cyprus Amax Minerals Co......... 1,881,600
------------
METAL -- NON-FERROUS -- 0.8%
30,000 Asarco, Inc..................... 918,750
18,500 Phelps Dodge Corp............... 1,575,969
35,000 Reynolds Metals Co.............. 2,493,750
------------
4,988,469
------------
METAL -- PROCESSING & FABRICATION -- 0.2%
44,800 Timken Co....................... 1,593,200
------------
MOTION PICTURES & SERVICES -- 0.4%
82,200 King World Productions, Inc..... 2,877,000
------------
OFFICE AUTOMATION & EQUIPMENT -- 0.6%
55,400 Pitney Bowes, Inc............... 3,947,250
------------
</TABLE>
Continued
28
<PAGE> 31
The Kent GROWTH AND INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
OFFICE SUPPLIES & FORMS -- 0.6%
59,200 IKON Office Solutions, Inc...... $ 1,476,300
134,200 Moore Corp., Ltd................ 2,642,063
------------
4,118,363
------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.2%
41,000 McDermott International, Inc.... 1,196,688
------------
OIL REFINING & MARKETING -- 0.8%
43,200 Ashland, Inc.................... 2,003,400
106,100 Sun Co., Inc.................... 3,289,100
------------
5,292,500
------------
OIL -- INTERNATIONAL INTEGRATED -- 1.9%
20,000 Chevron Corp.................... 1,478,750
177,800 Exxon Corp...................... 10,934,700
------------
12,413,450
------------
OIL -- PRODUCTION/PIPELINE -- 0.1%
9,600 Columbia Gas System, Inc........ 626,400
------------
OIL -- U.S. EXPLORATION & PRODUCTION -- 0.5%
160,500 Oryx Energy Co.*................ 3,390,562
------------
OIL -- U.S. INTEGRATED -- 7.3%
50,000 Amerada Hess Corp............... 2,778,125
159,100 Amoco Corp...................... 13,831,756
133,600 Atlantic Richfield Co........... 9,418,800
47,900 Kerr-McGee Corp................. 3,035,663
55,900 Pennzoil Co..................... 4,290,325
163,200 Phillips Petroleum Co........... 7,140,000
95,100 Unocal Corp..................... 3,691,069
136,800 USX-Marathon Group.............. 3,950,100
------------
48,135,838
------------
PAPER & RELATED PRODUCTS -- 2.4%
202,700 International Paper Co.......... 9,843,619
25,000 Mead Corp....................... 1,556,250
80,600 Union Camp Corp................. 4,030,000
10,000 Westvaco Corp................... 314,375
------------
15,744,244
------------
PHOTOGRAPHY EQUIPMENT & SUPPLIES -- 0.8%
90,100 Polaroid Corp................... 5,000,550
------------
POLLUTION CONTROL -- 0.2%
87,800 Safety-Kleen Corp............... 1,481,625
------------
PUBLISHING -- BOOKS -- 0.1%
14,000 McGraw-Hill Cos., Inc........... 823,375
------------
PUBLISHING -- NEWSPAPERS -- 1.4%
65,200 Gannett, Inc.................... 6,438,500
28,500 Knight-Ridder, Inc.............. 1,398,281
25,000 New York Times Co., Class A..... 1,262,500
------------
9,099,281
------------
RETAIL -- APPAREL/SHOES -- 0.6%
196,500 Limited, Inc.................... 3,979,125
------------
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- DISCOUNT -- 4.4%
218,500 Toys 'R' Us, Inc.*.............. $ 7,647,500
635,600 Wal-Mart Stores, Inc............ 21,491,225
------------
29,138,725
------------
RETAIL -- MAJOR DEPARTMENT STORES -- 0.2%
30,400 J.C. Penney, Inc................ 1,586,500
------------
RETAIL -- RESTAURANTS -- 0.1%
20,000 Wendy's International, Inc...... 518,750
------------
STEEL -- PRODUCERS -- 1.2%
125,100 Inland Steel Industries, Inc.... 3,268,237
137,500 USX-U.S. Steel Group, Inc....... 4,821,094
------------
8,089,331
------------
TELECOMMUNICATION EQUIPMENT -- 4.3%
125,000 General Instrument Corp.*....... 3,125,000
23,000 Harris Corp..................... 1,932,000
252,900 Motorola, Inc................... 19,220,400
187,900 Scientific-Atlanta, Inc......... 4,110,312
------------
28,387,712
------------
TEXTILE -- APPAREL -- 0.6%
30,000 Fruit of the Loom, Inc. -- Class
A*.............................. 930,000
68,600 Russell Corp.................... 2,032,275
10,000 V.F. Corp....................... 851,250
------------
3,813,525
------------
TOBACCO -- 2.9%
81,100 Fortune Brands, Inc............. 3,026,044
206,500 Philip Morris Cos., Inc......... 9,163,437
240,700 U.S.T., Inc..................... 6,679,425
------------
18,868,906
------------
TOOLS -- HAND HELD -- 0.1%
12,500 Snap-On, Inc.................... 492,187
------------
TOYS/GAME/HOBBY -- 0.3%
78,800 Hasbro, Inc..................... 2,235,950
------------
TRANSPORTATION -- RAILROAD -- 2.0%
45,000 CSX Corp........................ 2,497,500
68,400 Norfolk Southern Corp........... 6,891,300
53,000 Union Pacific Corp.............. 3,736,500
------------
13,125,300
------------
UTILITIES -- ELECTRIC POWER -- 8.1%
23,600 American Electric Power, Inc.... 991,200
107,700 Baltimore Gas & Electric Co..... 2,874,244
136,000 Consolidated Edison Co. of New
York, Inc....................... 4,003,500
115,800 Detroit Edison Co............... 3,198,975
67,400 Dominion Resources Inc. of
Virginia........................ 2,468,525
78,100 Edison International............ 1,942,738
45,000 Entergy Corp.................... 1,231,875
25,000 FPL Group, Inc.................. 1,151,562
20,000 General Public Utilities
Corp............................ 717,500
19,400 Houston Industries, Inc......... 415,888
</TABLE>
Continued
29
<PAGE> 32
The Kent GROWTH AND INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- ELECTRIC POWER (CONTINUED)
161,200 Niagara Mohawk Power Corp.*..... $ 1,380,275
28,500 Northern States Power Co........ 1,474,875
98,000 Ohio Edison Co.................. 2,137,625
267,000 Pacific Gas & Electric Co....... 6,474,750
125,700 PacifiCorp...................... 2,765,400
215,900 Peco Energy Corp................ 4,533,900
211,900 Public Service Enterprise Group,
Inc............................. 5,297,500
88,900 Texas Utilities Co.............. 3,061,494
219,000 Unicom Corp..................... 4,872,750
64,700 Union Electric Co............... 2,438,381
------------
53,432,957
------------
UTILITIES -- GAS DISTRIBUTION -- 0.3%
20,000 Eastern Enterprises............. 693,750
33,700 ONEOK, Inc...................... 1,084,719
------------
1,778,469
------------
<CAPTION>
MARKET
SHARES VALUE
- ----------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- TELEPHONE -- 3.5%
40,000 Alltel Corp..................... $ 1,337,500
545,800 AT&T Corp....................... 19,137,113
201 SBC Communications, Inc......... 12,437
67,400 US WEST Communications Group.... 2,540,137
------------
23,027,187
------------
TOTAL COMMON STOCKS............. 639,109,843
(cost $506,590,416) ------------
INVESTMENT COMPANIES -- 2.7%
7,564,121 Dreyfus Cash Management Money
Market Fund..................... 7,564,121
10,477,574 Federated Prime Value
Obligations Money Market Fund... 10,477,574
------------
TOTAL INVESTMENT COMPANIES...... 18,041,695
(cost $18,041,695) ------------
TOTAL INVESTMENTS -- 99.4%................... 657,151,538
(cost $524,632,111)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.6%........................ 4,066,942
------------
TOTAL NET ASSETS -- 100.0%................... $ 661,218,480
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $661,218,480.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $141,358,985
Unrealized depreciation............... (8,839,668)
------------
Net unrealized appreciation........... $132,519,427
============
</TABLE>
* Non-income producing security.
ADR American Depository Receipt
See Notes to Financial Statements.
30
<PAGE> 33
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- 97.7%
ADVERTISING -- 0.6%
53,400 Catalina Marketing Corp.*........ $ 2,569,875
63,500 True North Communications,
Inc.............................. 1,571,625
------------
4,141,500
------------
AEROSPACE/DEFENSE EQUIPMENT -- 1.3%
43,400 AAR Corp......................... 1,402,362
52,800 Aviall, Inc.*.................... 739,200
48,700 Banner Aerospace, Inc.*.......... 432,213
13,600 Curtiss-Wright Corp.............. 792,200
20,900 ECC International Corp.*......... 109,725
16,200 EDO Corp......................... 129,600
44,000 Fairchild Corp., Class A*........ 792,000
97,600 Hexcel Corp.*.................... 1,683,600
59,275 Rohr, Inc.*...................... 1,300,345
48,000 UNC, Inc.*....................... 702,000
14,400 Whitehall Corp.*................. 268,200
24,600 Whittaker Corp.*................. 273,675
------------
8,625,120
------------
AEROSPACE/DEFENSE -- 0.6%
34,900 Alliant Techsystems, Inc.*....... 1,919,500
37,800 Logicon, Inc..................... 2,003,400
34,700 Talley Industries, Inc.*......... 312,300
------------
4,235,200
------------
AGRICULTURAL OPERATIONS -- 0.0%
27,900 Orange Co., Inc.................. 216,225
------------
APPLIANCES -- HOUSEHOLD -- 0.3%
109,000 Fedders Corp..................... 619,938
20,000 National Presto Industries,
Inc.............................. 806,250
65,200 Royal Appliance Manufacturing
Co.*............................. 558,275
20,500 Toastmaster, Inc................. 69,187
------------
2,053,650
------------
AUDIO/VIDEO PRODUCTION -- 0.6%
48,280 Harman International Industries,
Inc.............................. 2,033,795
157,269 Zenith Electronics Corp.*........ 1,857,740
------------
3,891,535
------------
AUTO/TRUCK -- ORIGINAL EQUIPMENT -- 1.1%
58,300 Arvin Industries, Inc............ 1,588,675
60,000 Detroit Diesel Corp.*............ 1,436,250
8,600 Raytech Corp.*................... 48,375
54,800 Smith (A.O.) Corp................ 1,948,825
21,200 Sparton Corp.*................... 251,750
45,500 Standard Products Co............. 1,148,875
60,875 Titan International, Inc......... 1,072,922
------------
7,495,672
------------
AUTO/TRUCK -- REPLACEMENT -- 0.6%
39,300 SPX Corp......................... 2,547,131
35,700 Standard Motor Products, Inc..... 490,875
37,125 Wynn's International, Inc........ 1,053,422
------------
4,091,428
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BANKS -- MAJOR REGIONAL -- 0.0%
10,546 First Banks America, Inc.*....... $ 139,735
------------
BANKS -- NORTHEAST -- 0.3%
60,500 First Commonwealth Financial
Corp............................. 1,285,625
18,900 Sterling Bancorp................. 352,012
------------
1,637,637
------------
BANKS -- SOUTHEAST -- 0.7%
37,500 Centura Banks, Inc............... 1,720,313
70,800 Colonial Bancgroup, Inc.......... 1,716,900
49,500 F & M National Corp.............. 1,287,000
------------
4,724,213
------------
BANKS -- WEST -- 0.4%
113,100 City National Corp............... 2,721,469
------------
BUILDING -- 0.8%
62,500 Calmat Co........................ 1,343,750
62,400 Centex Construction Products,
Inc.............................. 1,216,800
40,800 Dravo Corp.*..................... 443,700
32,700 Lone Star Industries, Inc........ 1,481,719
14,800 Puerto Rican Cement Co., Inc..... 481,925
------------
4,967,894
------------
BUILDING -- HEAVY CONSTRUCTION -- 0.5%
23,300 Dycom Industries, Inc.*.......... 320,375
88,700 Morrison Knudsen Corp.*.......... 1,208,538
37,700 Stone & Webster, Inc............. 1,609,319
------------
3,138,232
------------
BUILDING -- MAINTENANCE & SERVICE -- 0.2%
51,400 ABM Industries, Inc.............. 992,662
------------
BUILDING -- MOBILE/MANUFACTURING & RECREATIONAL
VEHICLES -- 0.4%
30,500 Cavalier Homes, Inc.............. 305,000
40,600 Coachmen Industries, Inc......... 695,275
28,500 Skyline Corp..................... 701,813
24,100 Thor Industries, Inc............. 599,488
68,900 Winnebago Industries, Inc........ 490,912
------------
2,792,488
------------
BUILDING -- RESIDENTIAL/COMMERCIAL -- 0.7%
21,000 Beazer Homes USA, Inc.*.......... 336,000
19,000 Continental Home Holding Corp.... 334,875
87,800 Kaufman & Broad Home Corp........ 1,541,988
52,900 MDC Holdings, Inc................ 479,406
23,900 M/I Schottenstein Homes, Inc.*... 268,875
42,900 Ryland Group Inc................. 605,962
81,400 Standard-Pacific Corp............ 834,350
------------
4,401,456
------------
BUILDING & CONSTRUCTION --
MISCELLANEOUS -- 0.6%
10,800 Ameron International Corp........ 611,550
27,200 Congoleum Corp., Class A*........ 319,600
23,600 Elcor Corp....................... 657,850
</TABLE>
Continued
31
<PAGE> 34
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BUILDING & CONSTRUCTION --
MISCELLANEOUS (CONTINUED)
11,600 International Aluminum Corp...... $ 307,400
32,800 Nortek, Inc.*.................... 791,300
39,300 Ply-Gem Industries, Inc.......... 709,856
44,000 Robertson-Ceco Corp.*............ 374,000
31,900 Waxman Industries, Inc.*......... 151,525
------------
3,923,081
------------
BUILDING PRODUCTS -- AIR CONDITIONING/
HEAT -- 0.2%
24,100 Mestek, Inc.*.................... 497,063
25,575 Watsco, Inc...................... 639,375
------------
1,136,438
------------
BUILDING PRODUCTS -- DOORS & TRUSSES -- 0.2%
23,400 Morgan Products, Ltd.*........... 175,500
100,500 Premdor, Inc.*................... 942,187
------------
1,117,687
------------
BUILDING PRODUCTS -- LIGHTING/FIXTURES -- 0.1%
27,500 Thomas Industries, Inc........... 790,625
------------
BUILDING PRODUCTS -- RETAIL/WHOLESALE -- 0.4%
26,300 Hughes Supply, Inc............... 1,052,000
108,100 Payless Cashways, Inc.*.......... 94,588
69,700 Rexel, Inc.*..................... 1,289,450
------------
2,436,038
------------
BROADCAST -- RADIO/TELEVISION -- 0.0%
12,000 Gray Communications Systems,
Inc.............................. 269,250
------------
BUSINESS INFORMATION -- 0.5%
14,900 Duff & Phelps Credit Rating
Co............................... 452,587
53,400 Metromail Corp.*................. 1,321,650
68,800 Primark Corp.*................... 1,831,800
------------
3,606,037
------------
BUSINESS SERVICES -- 1.2%
56,600 ADVO, Inc.*...................... 919,750
49,800 Caribiner International, Inc.*... 1,624,725
33,600 Fair Issac & Co., Inc............ 1,497,300
50,000 Franklin Covey Co.*.............. 1,265,625
50,600 Interim Services, Inc.*.......... 2,251,700
15,200 Union Corp.*..................... 399,000
------------
7,958,100
------------
CABLE TELEVISION -- 0.8%
53,500 Bet Holdings, Inc., Class A*..... 1,752,125
93,125 International Family
Entertainment, Class B*.......... 3,201,172
------------
4,953,297
------------
CHEMICALS -- DIVERSIFIED -- 0.6%
54,000 ChemFirst, Inc................... 1,464,750
60,100 General Chemical Group, Inc...... 1,607,675
50,900 Rexene Corp...................... 792,131
------------
3,864,556
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CHEMICALS -- FIBER -- 0.1%
50,313 Schawk, Inc., Class A............ $ 437,094
------------
CHEMICALS -- PLASTICS -- 0.6%
61,100 Geon Co.......................... 1,237,275
63,500 Spartech Corp.................... 825,500
34,945 Tredegar Industries, Inc......... 1,939,448
------------
4,002,223
------------
CHEMICALS -- SPECIALTY -- 1.1%
45,100 Bush Boake Allen, Inc.*.......... 1,403,737
26,800 Chemed Corp...................... 1,003,325
24,000 LeaRonal, Inc.................... 684,000
61,300 Lilly Industries, Inc., Class
A................................ 1,233,663
29,100 McWhorter Technologies, Inc.*.... 694,762
132,400 NL Industries, Inc............... 1,919,800
18,500 Oil-Dri Corp..................... 297,156
------------
7,236,443
------------
COAL -- 0.5%
45,600 Ashland Coal, Inc................ 1,299,600
22,800 Pittston Co., Minerals Group..... 266,475
77,100 Zeigler Coal Holding Co.......... 1,802,213
------------
3,368,288
------------
COMPUTERS -- GRAPHICS -- 0.1%
105,366 Chyron Corp.*.................... 474,147
12,800 STB Systems, Inc.*............... 419,200
------------
893,347
------------
COMPUTERS -- INTEGRATED SYSTEMS -- 0.3%
86,900 Cerner Corp.*.................... 1,824,900
------------
COMPUTERS -- MAINFRAME -- 0.1%
34,200 Control Data Systems, Inc.*...... 508,725
------------
COMPUTERS -- MEMORY DEVICES -- 0.4%
62,411 Applied Magnetics Corp.*......... 1,412,049
49,300 Hutchinson Technology, Inc.*..... 1,207,850
49,400 Syquest Technology, Inc.*........ 112,694
------------
2,732,593
------------
COMPUTERS -- MICRO -- 0.5%
118,000 AST Research, Inc.*.............. 623,187
105,700 Data General Corp.*.............. 2,748,200
------------
3,371,387
------------
COMPUTERS -- OPTICAL RECOGNITION -- 0.2%
52,800 BancTec, Inc.*................... 1,369,500
------------
COMPUTERS -- PERIPHERAL EQUIPMENT -- 1.0%
35,700 Analogic Corp.................... 1,213,800
35,550 Davox Corp.*..................... 1,270,913
31,100 ENCAD, Inc.*..................... 1,290,650
24,300 MICROS Systems, Inc.*............ 1,020,600
69,500 Mylex Corp.*..................... 660,250
28,500 Par Technology Corp.*............ 256,500
24,200 Printronix, Inc.*................ 363,000
34,900 QMS, Inc.*....................... 91,612
</TABLE>
Continued
32
<PAGE> 35
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS -- PERIPHERAL EQUIPMENT (CONTINUED)
12,462 TransAct Technologies, Inc.*..... $ 176,026
12,400 Tridex Corp.*.................... 41,850
------------
6,385,201
------------
COMPUTERS -- SERVICES -- 1.1%
38,100 Analysts International Corp...... 1,276,350
20,400 BTG, Inc.*....................... 306,000
24,500 Broadway & Seymour, Inc.*........ 309,313
57,600 Computer Task Group, Inc......... 2,145,600
64,950 Computer Horizons Corp.*......... 2,224,537
106,300 PSINet, Inc.*.................... 797,250
------------
7,059,050
------------
COMPUTERS -- SOFTWARE -- 2.0%
86,400 BDM International, Inc.*......... 1,987,200
60,700 Bell & Howell Co.*............... 1,870,319
210,000 Computervision Corp.*............ 971,250
60,000 Excalibur Technologies Corp.*.... 322,500
149,500 Learning Co., Inc.*.............. 1,401,563
44,900 Media 100, Inc.*................. 207,662
135,000 Physician Computer Network,
Inc.*............................ 911,250
68,400 Platinum Software, Inc.*......... 709,650
29,400 Project Software & Development,
Inc.*............................ 426,300
25,100 Rainbow Technologies, Inc.*...... 473,763
15,800 Software Spectrum, Inc.*......... 205,400
87,000 Spectrum HoloByte, Inc.*......... 424,125
88,500 SPS Transaction Services,
Inc.*............................ 1,637,250
41,200 State of the Art, Inc.*.......... 453,200
51,900 Viewlogic Systems, Inc.*......... 759,037
27,700 Vmark Software, Inc.*............ 214,675
------------
12,975,144
------------
CONSUMER PRODUCTS -- MISCELLANEOUS -- 0.5%
46,100 Department 56, Inc.*............. 1,022,844
49,900 Ekco Group, Inc.................. 290,044
60,600 Mikasa, Inc.*.................... 863,550
30,000 Oneida, Ltd...................... 800,625
------------
2,977,063
------------
CONTAINERS -- METAL/GLASS -- 0.3%
34,700 United States Can Corp.*......... 494,475
43,700 Zero Corp........................ 1,147,125
------------
1,641,600
------------
CONTAINERS -- PAPER & PLASTIC -- 0.1%
37,400 ACX Technologies, Inc.*.......... 841,500
19,000 Artra Group, Inc.*............... 84,313
------------
925,813
------------
COSMETICS & TOILETRIES -- 0.3%
137,800 Playtex Products, Inc.*.......... 1,291,875
45,400 Windmere-Durable Holding, Inc.... 743,425
------------
2,035,300
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
DIVERSIFIED OPERATIONS -- 2.1%
24,800 Allied Products Corp............. $ 821,500
27,400 Bairnco Corp..................... 219,200
70,600 Carlisle Cos., Inc............... 2,462,175
40,300 Clarcor, Inc..................... 997,425
29,100 Core Industries, Inc............. 720,225
15,900 Craig Corp.*..................... 252,413
10,400 Dynamics Corp. of America........ 647,400
90,800 Gencorp, Inc..................... 2,099,750
78,400 Griffon Corp.*................... 1,073,100
35,100 LSB Industries, Inc.............. 144,787
31,300 Manitowoc Co., Inc............... 1,463,275
17,900 Nashua Corp.*.................... 194,663
37,900 Standex International Corp....... 1,137,000
81,300 Triarc Cos., Inc.*............... 1,656,487
------------
13,889,400
------------
ELECTRONIC COMPONENTS --
SEMICONDUCTORS -- 1.5%
67,000 Cyrix Corp.*..................... 1,432,125
70,600 Dallas Semi-Conductor Corp....... 2,771,050
34,100 Integrated Circuit Systems,
Inc.*............................ 773,644
84,300 PMC-Sierra, Inc.*................ 2,212,875
29,600 Unitrode Corp.*.................. 1,491,100
65,900 Zilog, Inc.*..................... 1,252,100
------------
9,932,894
------------
ELECTRONIC MEASURING INSTRUMENTS -- 0.6%
29,100 Fluke Corp....................... 1,724,175
78,300 GenRad, Inc.*.................... 1,771,538
32,500 Microtest, Inc.*................. 130,000
------------
3,625,713
------------
ELECTRONIC PARTS -- DISTRIBUTION -- 1.2%
29,418 Bell Industries, Inc.*........... 459,656
81,900 Kent Electronics Corp.*.......... 3,004,706
56,500 Marshall Industries*............. 2,104,625
29,200 Nu Horizons Electronics Corp.*... 239,075
23,501 Sterling Electronics Corp.*...... 299,638
42,000 Wyle Electronics................. 1,659,000
------------
7,766,700
------------
ELECTRONIC PRODUCTS -- MISCELLANEOUS -- 0.7%
16,200 Acme Electric Corp.*............. 107,325
43,900 Aeroflex, Inc.*.................. 224,987
23,500 American Precision Industries.... 455,312
31,300 Electronic Retailing Systems
International, Inc.*............. 176,063
26,400 Franklin Electronic Publishers,
Inc.*............................ 257,400
31,700 Kollmorgen Corp.................. 501,256
27,500 Kopin Corp.*..................... 429,688
80,600 MagneTek, Inc.*.................. 1,339,975
43,100 Recoton Corp.*................... 562,994
19,700 SL Industries, Inc............... 192,075
25,300 Three-Five Systems, Inc.*........ 376,337
------------
4,623,412
------------
</TABLE>
Continued
33
<PAGE> 36
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ELECTRONIC -- MILITARY -- 0.1%
13,800 Aydin Corp.*..................... $ 172,500
30,400 ESCO Electronics Corp............ 383,800
33,100 United Industrial Corp........... 295,831
------------
852,131
------------
ELECTRONIC -- MANUFACTURING &
MACHINERY -- 1.0%
56,000 Integrated Process Equipment
Corp.*........................... 1,417,500
50,100 Kulicke & Soffa Industries,
Inc.*............................ 1,626,684
38,600 PRI Automation, Inc.*............ 1,464,388
34,600 SpeedFam International, Inc.*.... 1,241,275
27,600 Watkins-Johnson Co............... 848,700
------------
6,598,547
------------
ELECTRONIC -- MISCELLANEOUS COMPONENTS -- 2.9%
24,100 ACT Manufacturing, Inc.*......... 1,006,175
67,300 BMC Industries, Inc.............. 2,305,025
17,000 CTS Corp......................... 1,171,938
46,800 California Amplifier, Inc.*...... 210,600
63,900 Computer Products, Inc.*......... 1,597,500
24,100 Del Global Technologies Corp.*... 204,850
25,800 Hadco Corp.*..................... 1,689,900
34,200 Innovex, Inc..................... 996,075
55,200 Littlefuse, Inc.*................ 1,559,400
61,300 Oak Industries, Inc.*............ 1,762,375
47,500 OEA, Inc......................... 1,876,250
37,700 Park Electrochemical Corp........ 991,981
31,700 Photronics Corp.*................ 1,513,675
17,600 Plexus Corp.*.................... 982,300
23,500 RadiSys Corp.*................... 934,125
17,900 Reptron Electronics, Inc.*....... 429,600
------------
19,231,769
------------
ENERGY -- ALTERNATIVE SOURCES -- 0.1%
31,000 Trigen Energy Corp............... 775,000
------------
ENGINEERING -- RESEARCH & DEVELOPMENT
SERVICES -- 0.1%
17,800 Corrpro Cos., Inc.*.............. 169,100
24,190 URS Corp.*....................... 317,494
------------
486,594
------------
FERTILIZERS -- 0.2%
63,636 Mississippi Chemical Corp........ 1,320,447
------------
FINANCIAL -- CONSUMER LOANS -- 0.4%
98,100 Arcadia Financial Ltd............ 901,294
45,400 Student Loan Corp................ 1,926,663
------------
2,827,957
------------
FINANCIAL -- INVESTMENT BANKERS -- 2.2%
22,600 Advest Group, Inc.*.............. 536,750
33,550 Inter-Regional Financial Group,
Inc.............................. 1,423,778
16,700 Interstate/Johnson Lane, Inc..... 392,450
30,200 Jefferies Group, Inc............. 1,721,400
41,800 Legg Mason, Inc.................. 2,249,362
23,900 McDonald & Co. Investments,
Inc.............................. 1,096,413
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL -- INVESTMENT BANKERS (CONTINUED)
56,350 Morgan Keegan, Inc............... $ 1,127,000
48,800 Piper Jaffray Cos., Inc.......... 1,000,400
91,470 Quick & Reilly Group, Inc........ 2,126,677
84,337 Raymond James Financial, Inc..... 2,308,725
34,400 Sherwood Group, Inc.*............ 580,500
12,480 Stifel Financial Corp............ 148,200
------------
14,711,655
------------
FINANCIAL -- INVESTMENT MANAGEMENT
COS. -- 0.4%
24,000 Atalanta Sosnoff Capital Corp.... 265,500
85,300 Insignia Financial Group, Inc.,
Class A*......................... 1,546,062
114,800 Phoenix Duff & Phelps Corp....... 846,650
------------
2,658,212
------------
FINANCIAL -- LEASING COMPANIES -- 0.6%
29,300 DVI, Inc.*....................... 424,850
70,350 Interpool, Inc................... 1,037,663
77,430 National Auto Credit, Inc.*...... 687,191
16,500 PS Group Holdings, Inc........... 212,438
116,500 Rollins Truck Leasing Corp....... 1,732,938
------------
4,095,080
------------
FINANCIAL -- MISCELLANEOUS SERVICES -- 0.1%
13,600 Hallwood Group, Inc.*............ 340,000
17,500 Stewart Information Services
Corp............................. 360,938
27,400 Transmedia Network, Inc.......... 109,600
------------
810,538
------------
FINANCIAL -- MORTGAGE & RELATED
SERVICES -- 0.6%
56,000 CMAC Investment Corp............. 2,674,000
40,900 North American Mortgage Co....... 968,819
------------
3,642,819
------------
FINANCIAL -- SMALL BUSINESS INVESTMENT CO. &
COMMERCIAL -- 0.6%
51,000 PEC Israel Economic Corp.*....... 1,224,000
82,000 Safeguard Scientifics, Inc.*..... 2,608,625
------------
3,832,625
------------
FINANCIAL -- SAVINGS & LOAN -- 2.2%
46,200 Coast Savings Financial, Inc.*... 2,099,212
55,650 Commercial Federal Corp.......... 2,066,006
72,630 Downey Financial Corp............ 1,715,884
20,526 First Republic Bancorp, Inc.*.... 477,229
41,250 Firstbank Puerto Rico............ 1,067,344
28,800 Firstfed Financial Corp.*........ 894,600
101,700 Glendale Federal Bank*........... 2,656,913
48,450 New York Bancorp, Inc............ 1,683,638
16,100 PonceBank........................ 310,931
67,773 Westcorp......................... 1,245,329
------------
14,217,086
------------
FOOD -- FLOUR & GRAIN -- 0.2%
48,900 International Multi-Foods
Corp............................. 1,228,612
------------
</TABLE>
Continued
34
<PAGE> 37
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FOOD -- MEAT PRODUCTS -- 0.3%
81,800 Hudson Foods, Inc., Class A...... $ 1,334,362
75,000 Pilgrim's Pride Corp............. 885,938
------------
2,220,300
------------
FOOD -- MISCELLANEOUS/DIVERSIFIED -- 0.5%
29,151 Chock Full O'Nuts Corp.*......... 213,167
21,500 Earthgrains Co................... 1,409,594
78,800 Smucker (J.M.) Co., Class B...... 1,708,975
------------
3,331,736
------------
FOOD -- SUGAR & REFRIGERATED -- 0.2%
71,300 Savannah Foods & Industries,
Inc.............................. 1,252,206
------------
FOOD ITEMS -- WHOLESALE -- 0.3%
73,025 Rykoff-Sexton, Inc............... 1,702,395
------------
FURNITURE -- 0.4%
34,887 Bush Industries, Inc............. 828,566
15,600 Chromcraft Revington, Inc.*...... 446,550
45,700 O'Sullivan Industries*........... 756,906
36,250 Rowe Furniture Corp.............. 271,875
24,100 Shelby Williams Industries,
Inc.............................. 328,363
------------
2,632,260
------------
GLASS PRODUCTS -- 0.2%
40,800 Libbey, Inc...................... 1,428,000
------------
HOTELS & MOTELS -- 1.0%
17,200 Hammons (John Q.) Hotels,
Inc.*............................ 159,100
53,300 Marcus Corp...................... 1,355,819
103,400 Prime Hospitality Corp.*......... 2,042,150
66,500 Red Roof Inns, Inc.*............. 1,197,000
48,900 Wyndham Hotel Corp.*............. 1,580,081
------------
6,334,150
------------
INDUSTRIAL -- AUTOMOTIVE/ROBOTICS -- 0.4%
28,400 Esterline Technologies Corp.*.... 999,325
76,000 Gerber Scientific, Inc........... 1,501,000
35,500 Medar, Inc.*..................... 181,938
------------
2,682,263
------------
INSURANCE -- ACCIDENT & HEALTH -- 0.5%
54,200 Penncorp Financial Group, Inc.... 2,086,700
21,350 RLI Corp......................... 777,941
16,100 Westbridge Capital Corp.*........ 155,969
------------
3,020,610
------------
INSURANCE -- BROKERS -- 0.7%
37,900 Acordia, Inc..................... 1,516,000
46,500 Arthur J. Gallagher & Co......... 1,755,375
35,900 Blanch (E.W.) Holdings, Inc...... 958,081
36,900 Hilb, Rogal & Hamilton Co........ 627,300
------------
4,856,756
------------
INSURANCE -- LIFE -- 2.1%
111,700 American Annuity Group, Inc...... 2,010,600
37,200 American Heritage Life Investment
Corp............................. 1,227,600
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INSURANCE (CONTINUED)
35,300 Amvestors Financial Corp......... $ 661,875
51,510 Delphi Financial Group*.......... 1,983,135
66,600 John Alden Financial Corp........ 1,394,437
38,500 Life Re Corp..................... 1,795,062
41,600 Reinsurance Group of America,
Inc.............................. 2,392,000
23,300 Security-Connecticut Corp........ 1,282,956
33,300 Washington National Corp......... 949,050
------------
13,696,715
------------
INSURANCE -- MULTI-LINE -- 1.0%
46,500 Enhance Financial Services Group,
Inc.............................. 2,040,188
49,300 FBL Financial Group Inc., Class
A................................ 1,861,075
39,809 Fidelity National Financial,
Inc.............................. 671,777
50,000 Mutual Risk Management Ltd....... 2,293,750
------------
6,866,790
------------
INSURANCE -- PROPERTY & CASUALTY -- 3.8%
40,400 Acceptance Insurance Cos.*....... 919,100
37,400 Capital Re Corp.................. 2,022,300
41,900 Capsure Holdings Corp............ 542,081
76,800 Crawford & Co., Class A.......... 1,180,800
31,100 Executive Risk, Inc.............. 1,617,200
30,800 First American Financial Corp.... 1,201,200
62,715 Fremont General Corp............. 2,524,279
37,890 Frontier Insurance Group, Inc.... 2,453,377
40,667 Guaranty National Corp........... 976,008
93,500 HCC Insurance Holdings, Inc...... 2,495,281
42,700 Integon Corp..................... 1,064,831
31,000 MMI Cos., Inc.................... 809,875
30,600 NYMAGIC, Inc..................... 631,125
33,500 Orion Capital Corp............... 2,470,625
49,900 Sphere Drake Holdings, Ltd....... 427,269
26,308 Titan Holdings, Inc.............. 624,815
49,050 Vesta Insurance Group, Inc....... 2,121,413
47,900 Zenith National Insurance Co..... 1,296,294
------------
25,377,873
------------
INSTRUMENTS -- CONTROL -- 0.4%
79,000 BW/IP Holdings, Inc.............. 1,604,687
55,700 Imo Industries, Inc.*............ 327,238
39,600 Pacific Scientific Co............ 524,700
------------
2,456,625
------------
INSTRUMENTS -- SCIENTIFIC -- 0.5%
31,900 Dionex Corp.*.................... 1,634,875
49,100 Dynatech Corp.*.................. 1,755,325
------------
3,390,200
------------
LASERS -- SYSTEMS/COMPONENTS -- 0.5%
27,900 Coherent, Inc.*.................. 1,241,550
12,700 Cyberoptics Corp.*............... 200,025
28,600 Electro Scientific Industries,
Inc.*............................ 1,197,625
37,800 VISX, Inc.*...................... 897,750
------------
3,536,950
------------
</TABLE>
Continued
35
<PAGE> 38
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
LEISURE & RECREATION PRODUCTS -- 0.7%
24,700 Coastcast Corp.*................. $ 327,275
36,500 Huffy Corp....................... 533,813
45,030 K2, Inc.......................... 1,426,888
54,500 Outboard Marine Corp............. 967,375
68,000 Sturm, Ruger & Co., Inc.......... 1,334,500
------------
4,589,851
------------
LEISURE & RECREATION SERVICES -- 0.4%
30,300 Carmike Cinemas, Inc., Class
A*............................... 992,325
308,800 Cineplex Odeon Corp.*............ 559,700
21,200 GC Cos., Inc.*................... 975,200
------------
2,527,225
------------
LEISURE & RECREATION -- GAMING -- 0.8%
104,000 Aztar Corp.*..................... 734,500
132,100 Boyd Gaming Corp.*............... 759,575
110,950 Grand Casinos, Inc.*............. 1,636,513
25,500 Harveys Casinos Resorts.......... 447,844
25,300 Jackpot Enterprises, Inc......... 287,787
42,700 Showboat, Inc.................... 744,580
62,700 Trump Hotels & Casino Resorts,
Inc.*............................ 674,025
------------
5,284,824
------------
LINEN SUPPLY & RELATED -- 0.2%
24,800 Angelica Corp.................... 434,000
55,500 Unifirst Corp.................... 1,110,000
------------
1,544,000
------------
MACHINE TOOLS & RELATED PRODUCTS -- 0.4%
36,500 Applied Power, Inc., Class A..... 1,884,313
23,600 Brown & Sharpe Manufacturing Co.,
Class A*......................... 356,950
14,100 Gleason Corp..................... 655,650
------------
2,896,913
------------
MACHINERY -- CONSTRUCTION/MINING -- 0.3%
14,100 Christiana Cos., Inc.*........... 562,237
55,400 CMI Corp., Class A............... 221,600
42,050 Commercial Intertech Corp........ 586,072
28,700 Terex Corp.*..................... 552,475
------------
1,922,384
------------
MACHINERY -- ELECTRIC UTILITIES -- 0.2%
35,857 Kuhlman Corp..................... 1,156,388
------------
MACHINERY -- FARM -- 0.1%
26,000 Alamo Group, Inc................. 541,125
------------
MACHINERY -- GENERAL INDUSTRIAL -- 1.4%
27,000 Chart Industries, Inc............ 739,125
61,700 Global Industrial Technologies,
Inc.*............................ 1,264,850
46,925 Graco, Inc....................... 1,413,616
65,025 Idex Corp........................ 2,145,825
23,700 Katy Industries, Inc............. 352,538
75,433 Paxar Corp.*..................... 1,423,798
11,570 Portec, Inc...................... 135,948
24,400 Scotsman Industries, Inc......... 695,400
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MACHINERY -- GENERAL INDUSTRIAL (CONTINUED)
10,100 Sequa Corp., Class B*............ $ 628,725
7,400 Twin Disc, Inc................... 212,750
------------
9,012,575
------------
MACHINERY -- MATERIAL HANDLING -- 0.2%
62,600 Interlake Corp.*................. 281,700
21,600 Nacco Industries, Class A........ 1,219,050
------------
1,500,750
------------
MEDICAL INSTRUMENTS -- 0.5%
72,900 Acuson Corp.*.................... 1,676,700
43,260 Elscint, Ltd.*................... 373,118
41,100 Graham-Field Health Products,
Inc.............................. 559,987
33,400 OEC Medical Systems, Inc.*....... 594,938
------------
3,204,743
------------
MEDICAL PRODUCTS -- 0.5%
45,800 BEC Group, Inc.*................. 206,100
72,300 Haemonetics Corp.*............... 1,382,737
21,900 Maxxim Medical, Inc.*............ 380,513
83,900 Owens & Minor, Inc............... 1,253,256
------------
3,222,606
------------
MEDICAL -- BIOMEDICAL/GENETIC -- 0.3%
29,200 Biowhittaker, Inc.*.............. 324,850
37,100 Diagnostic Products Corp......... 1,170,969
45,489 Molecular Biosystems, Inc.*...... 409,401
------------
1,905,220
------------
MEDICAL -- DRUGS -- 0.4%
73,423 ICN Pharmaceuticals, Inc......... 2,106,322
36,260 Vitalink Pharmacy Services,
Inc.............................. 693,473
------------
2,799,795
------------
MEDICAL -- GENERIC DRUGS -- 0.2%
58,900 Alpharma, Inc., Class A.......... 938,719
49,400 Pharmaceutical Resources,
Inc.*............................ 135,850
------------
1,074,569
------------
MEDICAL -- HEALTH MAINTENANCE ORGANIZATION --
0.6%
36,800 PHP Healthcare Corp.*............ 483,000
50,800 Rightchoice Managed Care, Inc.,
Class A*......................... 688,975
46,100 Sierra Health Services, Inc.*.... 1,440,625
17,800 United American Healthcare*...... 106,800
35,600 United Wisconsin Services,
Inc.............................. 1,199,275
------------
3,918,675
------------
MEDICAL -- HOSPITALS -- 0.4%
7,200 Comprehensive Care Corp.*........ 87,300
39,000 Healthplan Services Corp.*....... 736,125
40,400 Pediatrix Medical Group, Inc.*... 1,850,825
------------
2,674,250
------------
MEDICAL -- NURSING HOMES -- 1.2%
14,400 Advocat, Inc.*................... 163,800
62,670 Grancare, Inc.*.................. 677,619
</TABLE>
Continued
36
<PAGE> 39
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MEDICAL -- NURSING HOMES (CONTINUED)
58,100 Integrated Health Services,
Inc.............................. $ 2,236,850
50,800 Living Centers of America,
Inc.*............................ 2,006,600
68,750 Multicare Cos., Inc.*............ 1,882,031
45,200 Regency Health Services, Inc.*... 694,950
------------
7,661,850
------------
MEDICAL -- OUTPATIENT/HOME CARE -- 0.7%
109,300 Coram Healthcare Corp.*.......... 266,419
55,500 Genesis Health Ventures, Inc.*... 1,873,125
165,100 NovaCare, Inc.*.................. 2,290,762
------------
4,430,306
------------
MEDICAL -- WHOLESALE DRUG -- 0.1%
31,000 Bindley Western Industries,
Inc.............................. 711,062
------------
MEDICAL/DENTAL SUPPLIES -- 0.7%
73,600 Ballard Medical Products......... 1,476,600
31,700 Cooper Cos., Inc.*............... 737,025
18,800 Isomedix, Inc.*.................. 294,925
51,000 Sunrise Medical, Inc.*........... 771,375
45,200 West Co., Inc.................... 1,293,850
------------
4,573,775
------------
METAL -- GOLD -- 0.4%
93,000 Agnico-Eagle Mines, Ltd.......... 895,125
337,000 Campbell Resources, Inc.*........ 210,625
71,600 Glamis Gold, Ltd................. 519,100
130,700 Hecla Mining Co.*................ 702,512
------------
2,327,362
------------
METAL -- IRON -- 0.5%
32,200 Cleveland-Cliffs, Inc............ 1,312,150
107,300 National Steel Corp., Class B*... 1,803,981
------------
3,116,131
------------
METAL -- MISCELLANEOUS -- 0.3%
43,100 Brush Wellman, Inc............... 902,406
43,000 Nord Resources Corp.*............ 134,375
20,000 Tremont Corp.*................... 877,500
23,206 Zemex Corp.*..................... 179,847
------------
2,094,128
------------
METAL -- NON-FERROUS -- 0.2%
131,400 Kaiser Aluminum Corp.*........... 1,609,650
------------
METAL -- SILVER -- 0.2%
55,600 Coeur d'Alene Mines Corp.*....... 719,325
515,872 Sunshine Mining & Refining
Co.*............................. 354,662
------------
1,073,987
------------
METAL PRODUCTS -- DISTRIBUTION -- 0.3%
31,950 Applied Industrial Technology,
Inc.............................. 1,150,200
41,850 Reliance Steel & Aluminum Co..... 1,088,100
------------
2,238,300
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
METAL PRODUCTS -- FASTENERS -- 0.2%
15,900 SPS Technologies, Inc.*.......... $ 1,128,900
13,700 TransTechnology Corp............. 311,675
------------
1,440,575
------------
METAL -- PROCESSING & FABRICATION -- 0.7%
23,400 Amcast Industrial Corp........... 585,000
26,000 Ampco-Pittsburgh Corp............ 381,875
27,300 Chase Industries, Inc.*.......... 665,437
40,733 Commercial Metals Co............. 1,313,639
23,300 Fansteel, Inc.*.................. 171,838
24,300 Huntco, Inc., Class A............ 346,275
35,800 Wolverine Tube, Inc.*............ 997,925
------------
4,461,989
------------
OFFICE AUTOMATION & EQUIPMENT -- 0.2%
17,000 Daisytek International Corp.*.... 673,625
34,300 In Focus Systems, Inc.*.......... 878,938
------------
1,552,563
------------
OFFICE SUPPLIES & FORMS -- 0.6%
44,500 American Business Products,
Inc.............................. 1,012,375
29,100 CSS Industries, Inc.*............ 920,287
44,700 Ennis Business Forms, Inc........ 430,238
43,400 Hunt Manufacturing Co............ 813,750
40,700 New England Business Service,
Inc.............................. 1,070,919
------------
4,247,569
------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.5%
44,200 Daniel Industries, Inc........... 682,337
82,700 Varco International, Inc.*....... 2,667,075
------------
3,349,412
------------
OIL REFINING & MARKETING -- 0.6%
34,400 Getty Realty Corp................ 606,300
30,600 Giant Industries, Inc............ 483,863
92,900 Quaker State Corp................ 1,416,725
69,400 Tesoro Petroleum Corp.*.......... 1,027,988
21,600 Tokheim Corp.*................... 245,700
21,900 World Fuel Services Corp......... 479,062
------------
4,259,638
------------
OIL & GAS -- DRILLING -- 0.3%
169,100 Parker Drilling Co.*............. 1,881,238
80,220 Zapata Corp.*.................... 396,086
------------
2,277,324
------------
OIL -- FIELD SERVICES -- 0.5%
63,000 Oceaneering International,
Inc.*............................ 1,165,500
39,500 RPC Energy Services, Inc.*....... 582,625
27,800 Seitel, Inc.*.................... 1,056,400
63,500 Unit Corp.*...................... 662,781
------------
3,467,306
------------
OIL -- PRODUCTION/PIPELINE -- 0.4%
79,900 Aquila Gas Pipeline Corp......... 1,113,606
91,300 Kaneb Services, Inc.*............ 336,669
</TABLE>
Continued
37
<PAGE> 40
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
OIL -- PRODUCTION/PIPELINE (CONTINUED)
74,500 Western Gas Resources, Inc....... $ 1,452,750
------------
2,903,025
------------
OIL -- U.S. EXPLORATION & PRODUCTION -- 2.6%
59,400 Berry Petroleum Co., Class A..... 1,128,600
61,900 Cabot Oil & Gas Corp., Class A... 1,090,987
75,000 Cross Timers Oil Co.............. 1,443,750
45,700 HS Resources, Inc.*.............. 645,513
62,400 KCS Energy, Inc.................. 1,271,400
75,600 Louis Dreyfus Natural Gas*....... 1,228,500
173,600 Mesa, Inc.*...................... 998,200
97,700 Newfield Exploration Co.*........ 1,954,000
32,000 Nuevo Energy Co.*................ 1,312,000
85,100 Snyder Oil Corp.................. 1,563,713
32,100 Stone Energy Corp.*.............. 878,737
39,160 Swift Energy Co.*................ 934,945
51,900 Vintage Petroleum, Inc........... 1,595,925
73,700 Wainoco Oil Corp.*............... 313,225
25,440 Wilshire Oil Co. of Texas........ 135,150
24,300 Wiser Oil Co..................... 448,031
------------
16,942,676
------------
OIL -- U.S. INTEGRATED -- 0.1%
13,300 Howell Corp...................... 266,000
25,700 USX-Delhi Group.................. 337,313
------------
603,313
------------
PAPER & RELATED PRODUCTS -- 0.3%
31,500 Paragon Trade Brands, Inc.*...... 537,469
36,300 Pope & Talbot, Inc............... 596,681
31,460 Republic Group, Inc.............. 633,132
------------
1,767,282
------------
PHOTOGRAPHY EQUIPMENT & SUPPLIES -- 0.1%
37,700 CPI Corp......................... 791,700
------------
POLLUTION CONTROL -- 1.2%
108,100 Allwaste, Inc.*.................. 1,026,950
81,000 American Waste Services, Inc.,
Class A*......................... 131,625
109,900 Calgon Carbon Corp............... 1,524,863
61,300 Dames & Moore, Inc............... 758,587
32,000 Imco Recycling, Inc.............. 604,000
24,275 International Technology
Corp.*........................... 185,097
164,100 Laidlaw Environmental Services,
Inc.............................. 492,300
47,100 Lydall, Inc.*.................... 994,988
72,600 OHM Corp.*....................... 612,563
34,700 Osmonics, Inc.*.................. 639,781
33,500 Zurn Industries, Inc............. 963,125
------------
7,933,879
------------
PRECIOUS METALS -- JEWELRY -- 0.1%
38,100 Handy & Harman................... 661,987
------------
PRINTING -- COMMERCIAL -- 0.0%
51,800 American Banknote Corp.*......... 239,575
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PROTECTION -- SAFETY -- 0.5%
63,200 Borg-Warner Security Corp.*...... $ 1,129,700
52,700 Wackenhut Corrections Corp.*..... 1,534,888
32,725 Wackenhut Corp., Class A......... 785,400
------------
3,449,988
------------
PUBLISHING -- BOOKS -- 0.3%
44,600 Nelson (Thomas), Inc............. 618,825
37,100 Wiley (John) & Sons, Class A..... 1,256,762
------------
1,875,587
------------
PUBLISHING -- PERIODICALS -- 0.2%
114,100 American Media, Inc., Class A*... 798,700
54,200 Playboy Enterprises, Inc.*....... 626,688
------------
1,425,388
------------
REAL ESTATE OPERATIONS -- 0.2%
51,700 Grubb & Ellis Co.*............... 885,362
46,300 Webb (Del) Corp.................. 752,375
------------
1,637,737
------------
RETAIL/WHOLESALE -- AUTO PARTS -- 0.1%
45,000 Discount Auto Parts, Inc.*....... 877,500
29,100 Hi-Lo Automotive, Inc.*.......... 83,663
------------
961,163
------------
RETAIL -- APPAREL/SHOES -- 0.9%
62,700 Ann Taylor Stores Corp.*......... 1,222,650
110,400 Burlington Coat Factory Warehouse
Corp.*........................... 2,152,800
133,300 CML Group, Inc................... 241,606
35,600 Cole (Kenneth) Productions, Inc.,
Class A*......................... 580,725
28,300 Gottschalks, Inc.*............... 233,475
89,400 Hartmarx Corp.*.................. 737,550
71,800 Starter Corp.*................... 323,100
47,900 Syms Corp.*...................... 476,006
------------
5,967,912
------------
RETAIL -- CONSUMER ELECTRONICS -- 0.1%
91,000 Handleman Co..................... 580,125
30,000 Intertan, Inc.*.................. 110,625
24,400 Rex Stores Corp.*................ 247,050
------------
937,800
------------
RETAIL -- DISCOUNT -- 1.2%
14,200 Alexander's, Inc.*............... 999,325
73,900 Duty Free International, Inc..... 1,385,625
35,000 Hills Stores Co.*................ 120,312
66,800 Mac Frugal's Bargains --
Close-Outs, Inc.*................ 1,820,300
87,000 Shopko Stores, Inc............... 2,218,500
54,900 Smart & Final, Inc............... 1,345,050
------------
7,889,112
------------
</TABLE>
Continued
38
<PAGE> 41
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- HOME FURNISHINGS -- 0.8%
101,400 Bombay Co., Inc.*................ $ 507,000
39,000 Ethan Allen Interiors, Inc....... 2,223,000
80,200 Levitz Furniture, Inc.*.......... 115,288
99,040 Pier One Imports, Inc............ 2,624,560
------------
5,469,848
------------
RETAIL -- JEWELRY -- 0.3%
118,800 Claire's Stores, Inc............. 2,079,000
------------
RETAIL -- MAIL ORDER -- 0.3%
63,900 National Media Corp.*............ 415,350
18,250 Sport Supply Group, Inc.......... 122,047
46,500 Stanhome, Inc.................... 1,528,687
------------
2,066,084
------------
RETAIL -- MISCELLANEOUS/DIVERSIFIED -- 1.9%
78,400 AmeriCredit Corp.*............... 1,646,400
78,000 Cash America Intl., Inc.......... 819,000
30,900 Cole National Corp., Class A*.... 1,359,600
50,000 Fabri-Centers of America, Inc.,
Class A*......................... 1,362,500
126,800 Furniture Brands International,
Inc.*............................ 2,456,750
66,281 General Host Corp.*.............. 227,841
58,500 Hancock Fabrics, Inc............. 804,375
67,500 Jenny Craig, Inc.*............... 468,281
53,700 JumboSports, Inc................. 204,731
58,550 Russ Berrie & Co., Inc........... 1,284,441
32,800 Tandycrafts, Inc.*............... 155,800
83,850 The Sports Authority, Inc.*...... 1,629,834
------------
12,419,553
------------
RETAIL -- MAJOR DEPARTMENT STORES -- 0.2%
44,500 Carson Pirie Scott & Co.*........ 1,412,875
------------
RETAIL -- RESTAURANTS -- 1.4%
22,300 Chart House Enterprises, Inc.*... 170,038
72,900 CKE Restaurants, Inc............. 2,305,462
26,800 Cooker Restaurant Corp........... 286,425
105,500 Foodmaker, Inc.*................. 1,727,563
15,500 J. Alexander's Corp.............. 124,000
61,200 Luby's Cafeteria, Inc............ 1,220,175
17,300 Morton's Restaurant Group,
Inc.*............................ 343,837
28,300 Piccadilly Cafeterias, Inc....... 300,688
53,300 Sbarro, Inc...................... 1,479,075
75,300 Sizzler International, Inc.*..... 221,194
15,300 Spaghetti Warehouse, Inc.*....... 91,800
68,500 TCBY Enterprises, Inc............ 432,406
33,775 UNO Restaurant Corp.*............ 238,536
------------
8,941,199
------------
RETAIL -- REGIONAL DEPARTMENT STORES -- 0.1%
86,100 Value City Department Stores,
Inc.*............................ 699,563
------------
RETAIL -- SUPERMARKET -- 0.1%
41,483 Carr-Gottstein Foods Co.*........ 207,415
29,300 Penn Traffic Co.*................ 230,737
------------
438,152
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RUBBER -- TIRES -- 0.0%
24,500 China Tire Holdings, Ltd......... $ 217,438
------------
RUBBER & PLASTICS -- 0.2%
24,000 Furon Co......................... 753,000
36,100 Lamson & Sessions Co.*........... 300,081
------------
1,053,081
------------
SCHOOLS -- 0.4%
27,100 Berlitz International, Inc.*..... 675,806
68,400 ITT Educational Services,
Inc.*............................ 1,697,175
------------
2,372,981
------------
SHOES & RELATED APPAREL -- 0.8%
25,175 Barry (R.G.) Corp.*.............. 305,247
48,700 Brown Group, Inc................. 910,081
45,300 Converse, Inc.*.................. 1,002,263
11,900 Fuqua Enterprises, Inc.*......... 252,875
66,200 Genesco, Inc.*................... 939,212
29,900 Timberland Co., Class A*......... 1,943,500
------------
5,353,178
------------
SOAP & CLEANING -- 0.4%
53,100 Church & Dwight Co., Inc......... 1,420,425
21,600 NCH Corp......................... 1,350,000
------------
2,770,425
------------
STEEL -- PIPES & TUBES -- 0.2%
37,500 NS Group, Inc.*.................. 445,313
36,700 Quanex Corp...................... 1,126,231
------------
1,571,544
------------
STEEL -- PRODUCERS -- 0.8%
247,700 Armco, Inc.*..................... 959,837
77,600 Birmingham Steel Corp............ 1,202,800
77,900 Chaparral Steel Co............... 1,163,631
58,800 Rouge Steel Co., Class A......... 992,250
113,700 Weirton Steel Corp.*............. 341,100
68,600 WHX Corp.*....................... 523,075
------------
5,182,693
------------
STEEL -- SPECIALTY -- 0.8%
100,200 J & L Specialty Steel, Inc....... 1,202,400
40,100 Lukens, Inc...................... 754,381
41,500 Material Sciences Corp.*......... 640,656
68,100 Oregon Steel Mills, Inc.......... 1,357,744
52,530 RMI Titanium Co.*................ 1,431,443
------------
5,386,624
------------
TELECOMMUNICATION EQUIPMENT -- 1.3%
70,300 American Mobile Satellite
Corp.*........................... 720,575
37,200 C-COR Electronics, Inc.*......... 372,000
27,600 Centigram Communications Corp.*.. 357,075
42,000 CommNet Cellular, Inc.*.......... 1,459,500
68,100 General DataComm Industries,
Inc.*............................ 485,212
26,385 Intellicall, Inc.*............... 122,031
</TABLE>
Continued
39
<PAGE> 42
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATION EQUIPMENT (CONTINUED)
57,300 InterVoice, Inc.*................ $ 526,444
69,400 Network Equipment Technologies,
Inc.*............................ 1,249,200
28,900 Plantronics, Inc.*............... 1,448,613
20,300 Tech-Sym Corp.*.................. 677,513
35,200 Telco Systems, Inc.*............. 312,400
100,500 Telular Corp.*................... 358,031
45,900 Titan Corp.*..................... 195,075
------------
8,283,669
------------
TEXTILE -- APPAREL -- 0.9%
55,300 Authentic Fitness Corp........... 698,162
26,500 Chic by H.I.S., Inc.*............ 175,563
66,500 Delta Woodside Industries,
Inc.............................. 448,875
27,600 Farah, Inc.*..................... 175,950
57,650 Kellwood Co...................... 1,599,787
23,900 Oxford Industries, Inc........... 678,162
73,300 Phillips-Van Heusen Corp......... 1,099,500
40,900 Salant Corp.*.................... 122,700
81,000 Tultex Corp.*.................... 496,125
39,200 Worldtex, Inc.*.................. 313,600
------------
5,808,424
------------
TEXTILE -- HOME FURNISHINGS -- 0.2%
21,700 Crown Crafts, Inc................ 227,850
24,300 Fieldcrest Cannon, Inc.*......... 461,700
28,900 Pillowtex Corp................... 633,994
------------
1,323,544
------------
TEXTILE -- PRODUCTS -- 0.6%
74,300 Cone Mills Corp.*................ 594,400
38,500 Dyersburg Corp................... 327,250
31,900 Galey & Lord, Inc.*.............. 598,125
57,450 Guilford Mills, Inc.............. 1,195,678
28,625 Johnston Industries, Inc......... 182,484
76,500 Polymer Group Inc.*.............. 1,233,562
------------
4,131,499
------------
TOBACCO -- 0.5%
50,300 Brooke Group, Ltd................ 176,050
12,000 Culbro Corp.*.................... 1,670,250
34,200 Schweitzer-Mauduit
International.................... 1,282,500
25,740 Standard Commercial Corp......... 447,232
------------
3,576,032
------------
TOOLS -- HAND HELD -- 0.3%
19,200 Starrett (L.S.) Co., Class A..... 612,000
33,400 Toro Co.......................... 1,265,025
------------
1,877,025
------------
TOYS/GAME/HOBBY -- 0.1%
45,400 Galoob (Lewis) Toys, Inc.*....... 856,925
------------
TRANSPORTATION -- AIR FREIGHT -- 0.6%
57,300 Airborne Freight Corp............ 2,399,437
51,200 Pittston Burlington Group........ 1,440,000
------------
3,839,437
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION -- AIRLINE -- 0.2%
37,600 Alaska Airgroup, Inc.*........... $ 963,500
41,400 Worldcorp, Inc.*................. 106,088
------------
1,069,588
------------
TRANSPORTATION -- EQUIPMENT & LEASING -- 0.4%
60,000 Fruehauf Trailer Corp.*.......... 600
38,300 Greenbrier Cos., Inc............. 433,269
102,300 Westinghouse Air Brake Co........ 2,046,000
------------
2,479,869
------------
TRANSPORTATION -- SHIPPING -- 0.6%
17,950 International Shipholding
Corp............................. 306,272
31,800 Maritrans, Inc................... 246,450
110,900 OMI Corp.*....................... 1,060,481
30,000 Sea Containers, Ltd., Class B.... 701,250
47,200 Teekay Shipping Corp............. 1,631,350
47,400 Todd Shipyards Corp.*............ 195,525
------------
4,141,328
------------
TRANSPORTATION -- TRUCKING -- 0.0%
23,900 Matlack Systems, Inc.*........... 200,162
UTILITIES -- ELECTRIC POWER -- 2.1%
39,200 Black Hills Corp................. 1,117,200
44,100 Central Hudson Gas & Electric
Corp............................. 1,518,694
88,200 Central Maine Power Co........... 1,091,475
31,500 Central Vermont Public Service
Corp............................. 348,469
32,500 CILCORP, Inc..................... 1,338,594
54,000 Commonwealth Energy Systems
Co............................... 1,292,625
41,400 Empire District Electric Co...... 716,737
13,100 Green Mountain Power Corp........ 310,306
26,000 Interstate Power Co.............. 744,250
48,400 Northwestern Public Service
Co............................... 1,040,600
37,100 Orange & Rockland Utilities...... 1,247,487
21,000 St. Joseph Light & Power Co...... 343,875
29,700 TNP Enterprises, Inc............. 688,669
81,320 Tucson Electric Power Co.*....... 1,179,140
32,700 United Illuminating Co........... 1,009,612
------------
13,987,733
------------
UTILITIES -- GAS DISTRIBUTION -- 2.5%
43,250 Atmos Energy Corp................ 1,038,000
36,400 Bay State Gas Co................. 969,150
24,850 Cascade Natural Gas Corp......... 406,919
10,100 Chesapeake Utilities Corp........ 171,700
24,200 Connecticut Energy Corp.......... 586,850
27,000 Connecticut Natural Gas Corp..... 594,000
29,500 Energen Corp..................... 993,781
8,700 Energynorth, Inc................. 196,838
57,100 Indiana Energy, Inc.............. 1,395,381
47,500 Laclede Gas Co................... 1,033,125
44,900 New Jersey Resources Corp........ 1,408,737
</TABLE>
Continued
40
<PAGE> 43
The Kent SMALL COMPANY GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- GAS DISTRIBUTION (CONTINUED)
17,700 North Carolina Natural Gas....... $ 590,737
24,800 NUI Corp......................... 556,450
29,000 Pennsylvania Enterprises, Inc.... 741,312
51,100 Public Service Co. of North
Carolina......................... 980,481
29,100 South Jersey Industries, Inc..... 647,475
46,305 Southern Union Co.*.............. 1,059,227
66,500 Southwest Gas Corp............... 1,288,438
67,000 Southwestern Energy Co........... 871,000
28,300 Yankee Energy System, Inc........ 693,350
------------
16,222,951
------------
UTILITIES -- WATER SUPPLY -- 0.8%
18,600 Aquarion Co...................... 502,200
16,900 California Water Service Co...... 743,600
20,400 E'town Corp...................... 629,850
49,650 Philadelphia Suburban Corp....... 949,556
21,200 Southern California Water........ 519,400
86,200 United Water Resources, Inc...... 1,670,125
------------
5,014,731
------------
WIRE & CABLE PRODUCTS -- 0.3%
53,400 Barnes Group, Inc................ 1,575,300
22,800 Insteel Industries, Inc.......... 185,250
24,680 Keystone Consolidated
Industries*...................... 268,395
------------
2,028,945
------------
TOTAL COMMON STOCKS.............. 644,910,960
(cost $468,784,194) ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL
AMOUNT
- -----------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS -- 0.1%
$500,000 U.S. Treasury Bill,
12/26/97 (b).................... $ 487,445
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS..................... 487,445
(cost $487,215) ------------
INVESTMENT COMPANIES -- 1.9%
6,743,337 Dreyfus Cash Management Money
Market Fund..................... 6,743,337
5,825,192 Federated Prime Value
Obligations Money Market Fund... 5,825,192
------------
TOTAL INVESTMENT COMPANIES...... 12,568,529
(cost $12,568,529) ------------
TOTAL INVESTMENTS............................ 657,966,934
(cost $481,840,287)(a) - 99.7%
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.3%........................ 2,120,845
------------
TOTAL NET ASSETS -- 100.0%................... $660,087,779
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $660,087,779.
* Non-income producing securities.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $207,056,595
Unrealized depreciation............... (30,929,948)
Net unrealized appreciation........... ------------
$176,126,647
</TABLE> ============
(b) Security has been deposited as initial margin on open futures contract.
At June 30, 1997, the Portfolio's open future contracts were as follows:
<TABLE>
<CAPTION>
# OF OPENING CURRENT MARKET
CONTRACTS CONTRACT TYPE POSITION VALUE
- --------- ------------------- ---------- ----------
<S> <C> <C> <C>
20 Russell 2000 Index, 15,993,200 15,956,000
9/18/97
</TABLE>
See Notes to Financial Statements.
41
<PAGE> 44
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- 98.1%
AUSTRALIA -- 2.7%
48,793 Amcor Ltd........................ $ 321,667
21,400 Australian Gas Light Co., Ltd.... 125,047
57,858 Australian National Industries
Ltd.............................. 70,217
85,762 Boral Ltd........................ 267,915
17,019 Brambles Industries Ltd.......... 333,927
166,816 Broken Hill Proprietary Co.,
Ltd.............................. 2,434,778
39,301 Burns, Philp & Co., Ltd.......... 72,428
42,367 Coca-Cola Amatil Ltd............. 545,911
83,501 Coles Myer Ltd................... 430,999
42,816 Crown Ltd.*...................... 68,321
72,118 CSR Ltd.......................... 277,158
21,387 Email Ltd........................ 75,944
9,000 Faulding (F.H.) & Co., Ltd....... 51,241
151,036 Foster's Brewing Group Ltd....... 278,344
84,616 General Property Trust Units..... 167,983
44,993 GIO Australia Holdings Ltd....... 138,196
93,004 Goodman Fielder Ltd.............. 135,863
15,900 Great Central Mines Ltd.......... 30,041
28,900 Hardie (James) Industries Ltd.... 92,014
21,770 ICI Australia Ltd................ 212,831
19,100 Leighton Holdings Ltd............ 92,305
19,067 Lend Lease Corp., Ltd............ 399,951
120,015 M.I.M. Holdings Ltd.............. 176,221
123,990 National Australia Bank Ltd...... 1,762,057
17,377 Newcrest Mining Ltd.............. 47,632
161,783 News Corp., Ltd.................. 769,613
120,557 Normandy Mining Ltd.............. 134,569
52,805 North Ltd........................ 199,771
75,500 Pacific Dunlop Ltd............... 221,717
65,388 Pioneer International Ltd........ 250,804
11,700 Plutonic Resources Ltd........... 36,287
21,458 QBE Insurance Group Ltd.......... 128,601
48,055 QCT Resources Ltd................ 58,680
15,593 RGC Ltd.......................... 56,655
25,236 Rio Tinto Ltd.................... 426,884
8,400 Rothmans Holdings Ltd............ 51,727
44,541 Santos Ltd....................... 185,858
9,200 Schroders Property Fund.......... 16,403
13,544 Smith (Howard) Ltd............... 127,845
43,632 Southcorp Holdings Ltd........... 162,126
24,000 Stockland Trust Group............ 62,569
40,300 Sydney Harbour Casino Holdings
Ltd.*............................ 62,796
22,300 TABCORP Holdings Ltd............. 120,283
84,486 Westfield Trust Units............ 172,155
151,612 Westpac Banking Corp., Ltd....... 905,228
86,385 WMC Ltd.......................... 540,369
------------
13,299,931
------------
AUSTRIA -- 1.7%
1,000 Austria Mikro Systeme
International AG................. 84,822
23,650 Bank Austria AG.................. 1,311,638
100 Bank Austria AG, Participating
Certificates..................... 2,667
1,400 Bau Holding AG................... 101,052
3,800 Boehler-Uddeholm AG.............. 294,739
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
AUSTRIA (CONTINUED)
11,220 Creditanstalt-Bankverein......... $ 655,209
2,780 EA-Generali AG................... 731,220
7,200 Flughafen Wien AG................ 304,184
600 Lenzing AG*...................... 35,234
4,100 Mayr-Melnhof Karton AG........... 210,668
3,100 Oesterreichische
Brau-Beteiligungs AG............. 183,305
12,669 Oesterreichische
Elektrizitaetswirtschafts
AG -- Class...................... 892,492
900 Oesterreichische Luftverskehrs
AG*.............................. 145,339
11,140 OMV AG........................... 1,427,274
4,775 Radex-Heraklith
Industriebeteiligungs AG......... 202,122
100 Steyr-Daimler-Puch AG............ 2,137
6,100 VA Technologie AG................ 1,116,541
2,333 Wienerberger Baustoffindustrie
AG............................... 479,310
------------
8,179,953
------------
BELGIUM -- 1.4%
1,000 Barco NV......................... 202,782
1,925 Cimenteries CBR Cementbedrijven.. 176,704
4,400 Delhaize-Le Lion SA.............. 231,321
5,500 Electrabel SA.................... 1,179,555
4,100 Fortis AG........................ 847,371
1,583 Generale de Banque SA............ 609,862
1,700 Gevaert NV....................... 159,833
2,000 Groupe Bruxelles Lambert SA...... 335,466
1,252 Kredietbank NV................... 504,979
2,297 PetroFina SA*.................... 870,560
1,350 Royale Belge..................... 392,419
851 Solvay SA........................ 501,841
1,368 Tractebel........................ 570,793
1,422 Union Miniere SA*................ 133,300
------------
6,716,786
------------
DENMARK -- 2.0%
28 Aarhus Oliefabrik AS -- Class
A................................ 1,394
9 Aarhus Oliefabrik AS -- Class
B................................ 455
6,360 Carlsberg AS -- Class A.......... 350,098
5,205 Carlsberg AS -- Class B.......... 287,304
10,095 Danisco AS....................... 618,119
10,147 Den Danske Bank.................. 988,575
39 D/S 1912 -- Class B.............. 1,396,908
29 D/S Svendborg AS -- Class B...... 1,500,140
8,215 FLS Industries AS -- Class B..... 278,760
42 GN Store Nord AS................. 4,466
2,190 ISS International Service System
AS, Series B*.................... 78,607
1,185 Korn-OG Foderstof Kompagniet AS.. 37,887
134 Lauritzen (J.) Holding AS*....... 13,439
111 NKT Holding AS................... 7,533
14,846 Novo Nordisk AS -- Class B....... 1,621,017
6,974 Ostasiatiske Kompagni AS*........ 165,128
84 Radiometer AS -- Class B......... 4,333
320 SAS Danmark AS................... 3,740
327 Sophus Berendsen AS -- Class A... 47,097
</TABLE>
Continued
42
<PAGE> 45
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
DENMARK (CONTINUED)
3,506 Sophus Berendsen AS -- Class B... $ 507,601
2,780 Superfos AS...................... 68,339
26,100 Tele Danmark AS -- Class B....... 1,357,998
9,693 Unidanmark AS -Class A........... 545,264
------------
9,884,202
------------
FINLAND -- 0.5%
800 Amer Group Ltd.*................. 14,401
1,300 Cultor OY, Series 2.............. 68,326
1,500 Instrumentarium Group, Series
B................................ 56,023
500 Kone Corp. -- Class B............ 59,681
36,906 Merita Ltd. -- Class A........... 122,919
8,200 Metra OY -- Class B.............. 247,061
11,600 Nokia AB -- Class A.............. 866,272
5,900 Nokia AB -- Class K.............. 439,582
800 Pohjola Insurance Group, Series
B................................ 23,719
433 Rauma OY......................... 9,920
750 Stockmann AB -- Class B.......... 39,852
15,560 UPM-Kymmene Corp................. 359,474
------------
2,307,230
------------
FRANCE -- 8.4%
2,550 Accor SA......................... 382,222
17,137 Alcatel Alsthom.................. 2,148,351
32,300 Axa -- UAP....................... 2,010,863
22,000 Banque Nationale de Paris........ 907,590
1,466 Bouygues......................... 120,732
1,900 Canal Plus*...................... 370,231
4,098 Carrefour SA..................... 2,979,127
498 Chargeurs International SA....... 28,722
500 Club Mediterranee SA*............ 35,463
1,972 Compagnie Bancaire SA............ 251,919
9,133 Compagnie de Saint Gobain........ 1,333,174
346,340 Compagnie de Suez SA............. 852,439
13,164 Compagnie Financiere de
Paribas -- Class A............... 910,346
50 Compagnie Generale de Geophysique
SA*.............................. 4,871
12,918 Compagnie Generale des Eaux...... 1,656,849
320 Comptoirs Modernes............... 168,968
500 CPR (Compagnie Parisenne de
Reescompte)...................... 36,289
844 Credit National.................. 48,001
1,050 Dollfus-Mieg & Cie*.............. 17,920
28,967 Elf Aquitane SA.................. 3,128,135
2,000 Eridania Beghin-Say SA........... 299,782
500 Essilor International............ 134,987
4,000 Etablissements Economiques du
Casino Guichard-Perrach.......... 198,197
1,050 Finextel......................... 17,768
7,621 Groupe Danone.................... 1,260,445
200 GTM ENTREPOSE SA................. 10,019
5,075 Havas SA......................... 366,085
1,195 Imetal SA........................ 158,562
7,421 Lafarge SA....................... 462,000
5,400 Lagardere SCA.................... 157,007
7,673 L'Air Liquide.................... 1,219,381
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FRANCE (CONTINUED)
2,200 Legrand SA....................... $ 387,843
7,109 L'OREAL*......................... 2,998,139
9,220 LVMH (Moet Hennessy Louis
Vuitton)......................... 2,481,308
9,500 Michelin -- Class B Registered... 571,042
3,050 Moulinex*........................ 83,641
1,350 Nord-Est SA...................... 29,801
498 Pathe SA......................... 98,905
3,500 Pernod Ricard.................... 180,636
2,248 Pinault-Printemps-Redoute SA..... 1,081,319
1,300 Primagaz Cie..................... 115,143
1,450 Promodes......................... 565,336
3,962 PSA Peugeot Citroen.............. 383,315
34,900 Rhone-Poulenc -- Class A......... 1,426,689
200 Sagem SA......................... 101,687
11,023 Sanofi SA........................ 1,081,471
10,700 Schneider SA..................... 570,090
2,600 SEFIMEG.......................... 166,072
3,200 SEITA............................ 101,381
1,600 Sidel SA......................... 124,001
918 Simco SA......................... 72,865
2,200 Societe BIC SA................... 360,113
192 Societe Eurafrance SA............ 78,815
9,947 Societe Generale................. 1,111,447
510 Sodexho Alliance SA.............. 261,388
5,833 Suez Lyonnaise des Eaux.......... 588,175
9,425 Thomson CSF...................... 243,052
25,700 Total SA -- Class B.............. 2,600,233
800 Unibail.......................... 74,945
27,600 Union des Assurances de Paris.... 696,236
572 Union Immobiliere de France...... 39,459
19,300 Usinor Sacilor................... 348,462
5,538 Valeo SA......................... 344,301
2,100 Worms et Compagnie............... 124,478
------------
41,168,233
------------
GERMANY -- 11.1%
4,100 Adidas AG........................ 458,815
2,040 AGIV-AG*......................... 46,711
25,970 Allianz AG....................... 5,551,585
178 AMB Aachener & Muenchener
Beteiligungs AG, Bearer.......... 158,333
366 AMB Aachener & Muenchener
Beteiligungs AG, Registered...... 331,862
69,880 BASF AG.......................... 2,580,597
80,840 Bayer AG......................... 3,117,556
23,320 Bayerische Hypotheken-und
Weschel-Bank AG.................. 705,943
24,480 Bayerische Vereinsbank AG........ 1,003,063
7,860 Beiersdorf AG, Series ABC........ 424,003
2,970 Bilfinger & Berger Bau AG........ 124,934
4,870 Continental AG................... 121,014
58,970 Daimler-Benz AG.................. 4,802,112
7,320 Degussa AG....................... 387,312
57,260 Deutsche Bank AG................. 3,364,884
34,680 Deutsche Lufthansa AG............ 667,714
251,800 Deutsche Telekom AG.............. 6,191,919
</TABLE>
Continued
43
<PAGE> 46
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
GERMANY (CONTINUED)
3,830 Deutz AG*........................ $ 37,365
1,630 Douglas Holding AG............... 65,479
50,960 Dresdner Bank AG................. 1,786,855
2,480 FAG Kugelfischer Georg Schaefer
AG............................... 46,254
3,700 Heidelberger Zement AG........... 358,845
4,730 Hochtief AG...................... 211,726
791 Karstadt AG...................... 285,980
765 Linde AG......................... 594,866
761 MAN AG........................... 237,139
4,080 Mannesmann AG.................... 1,823,964
15,600 Merck KGaA....................... 680,388
8,239 Metro AG*........................ 898,353
916 Muenchener Rueckversicherungs-
Gesellschaft AG.................. 2,596,816
1,331 Preussag AG...................... 391,845
796 PWA Papierwerke Waldhof-
Aschaffenburg AG................. 136,128
38,650 RWE AG........................... 1,663,526
5,500 SAP AG........................... 1,104,082
6,200 Schering AG...................... 664,641
64,170 Siemens AG....................... 3,846,442
2,834 Thyssen AG....................... 682,261
55,990 VEBA AG.......................... 3,164,940
2,312 Viag AG.......................... 1,056,799
3,093 Volkswagen AG.................... 2,346,552
------------
54,719,603
------------
HONG KONG -- 2.0%
96,666 Bank of East Asia Ltd............ 403,020
128,000 Cathay Pacific Airways........... 265,177
104,000 Cheung Kong Holdings Ltd......... 1,026,941
73,400 China Light & Power Co., Ltd..... 415,921
50,000 Hang Lung Development Co......... 91,645
87,800 Hang Seng Bank Ltd............... 1,252,297
4,600 Hong Kong Aircraft Engineering
Co., Ltd......................... 16,744
471,145 Hong Kong Telecommunications
Ltd.............................. 1,125,063
144,250 Hong Kong & China Gas Co., Ltd... 288,601
28,500 Hong Kong & Shanghai Hotels
Ltd.............................. 45,432
162,000 Hopewell Holdings Ltd............ 102,462
159,000 Hutchison Whampoa Ltd............ 1,375,063
38,000 Hysan Development Co., Ltd....... 112,078
26,000 Johnson Electric Holdings Ltd.... 77,524
7,200 Lai Sun Garment International
Ltd.............................. 8,829
11,000 Miramar Hotel & Investment
Ltd.............................. 20,233
69,462 New World Development Co., Ltd... 414,229
714 Regal Hotels International....... 194
58,000 Shangri-La Asia Ltd.............. 69,624
32,258 Shun Tak Holdings Ltd............ 19,778
130,000 South China Morning Post Holdings
Ltd.............................. 127,529
108,100 Sun Hung Kai Properties Ltd...... 1,301,144
59,000 Swire Pacific Ltd. -- Class A.... 531,186
33,270 Tai Cheung Holdings Ltd.......... 26,411
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HONG KONG (CONTINUED)
16,000 Television Broadcasts Ltd........ $ 71,870
85,000 Wharf Holdings Ltd............... 368,646
20,995 Wing Lung Bank................... 133,873
------------
9,691,514
------------
ITALY -- 4.1%
100,763 Assicurazioni Generali........... 1,829,901
162,400 Banca Commerciale Italiana....... 335,967
54,694 Banco Ambrosiano Veneto SpA...... 157,508
38,900 Banco Ambrosiano Veneto SpA di
Risp, (Non-convertible).......... 56,698
18,400 Banco Popolare di Milano......... 110,140
16,432 Benetton Group SpA............... 262,197
26,000 Bulgari SpA...................... 147,000
11,300 Burgo (Cartiere) SpA............. 62,627
1,900 Cementir SpA..................... 1,185
202,900 Credito Italiano SpA............. 370,860
57,400 Edison SpA....................... 285,229
914,900 ENI SpA.......................... 5,175,382
10,400 Falck, Acciaierie & Ferriere
Lombarde SpA..................... 39,180
375,580 Fiat SpA......................... 1,350,896
63,400 Fiat SpA di Risp,
(Non-convertible)................ 119,050
7,900 Impregilo SpA*................... 5,195
76,900 Istituto Bancario San Paolo di
Torino........................... 559,971
54,300 Istituto Mobiliare Italiano
SpA.............................. 488,269
457,400 Istituto Nazionale delle
Assicurazioni.................... 696,248
15,350 Italcementi SpA*................. 95,627
900 Italcementi SpA di Risp, (Non-
convertible)*.................... 2,195
59,900 Italgas SpA...................... 193,623
14,000 La Rinascente SpA................ 77,714
38,500 Magneti Marelli SpA.............. 64,940
106,400 Mediaset SpA..................... 451,176
43,075 Mediobanca SpA................... 261,260
11,400 Mondadori (Arnoldo) Editore SpA.. 65,794
451,862 Montedison SpA*.................. 297,966
12,800 Montedison SpA di Risp, (Non-
convertible)*.................... 8,275
328,900 Olivetti Group SpA*.............. 93,074
134,100 Parmalat Finanziaria SpA......... 189,545
132,900 Pirelli SpA...................... 328,833
20,900 Pirelli SpA di Risp, (Non-
convertible)..................... 29,787
29,762 Riunione Adriatica di Sicurta
SpA.............................. 235,262
10,923 Riunione Adriatica di Sicurta SpA
di Risp, (Non-convertible)....... 54,631
9,900 Sasib SpA........................ 33,630
19,400 Sirti SpA........................ 111,794
62,600 Snia BPD SpA..................... 56,474
900 Snia BPD SpA di Risp, (Non-
convertible)..................... 590
10,800 Societa Assicuratrice Industriale
(SAI) SpA........................ 83,531
759,260 Telecom Italia Mobile SpA........ 2,454,264
</TABLE>
Continued
44
<PAGE> 47
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ITALY (CONTINUED)
141,660 Telecom Italia Mobile SpA di
Risp, (Non-convertible).......... $ 253,098
759,260 Telecom Italia SpA............... 2,271,310
141,660 Telecom Italia SpA di Risp, (Non-
convertible)..................... 280,156
------------
20,048,052
------------
JAPAN -- 31.6%
11,000 Acom Co., Ltd.................... 530,630
5,940 Advantest Corp................... 456,803
54,000 Ajinomoto Co., Inc............... 580,442
12,000 Alps Electric Co., Ltd........... 167,788
27,000 Amada Co., Ltd................... 238,312
22,000 Aoki Corp.*...................... 25,955
5,000 Aoyama Trading Co., Ltd.......... 160,797
3,100 Arabian Oil Co., Ltd............. 104,570
196,000 Asahi Bank Ltd................... 1,670,016
32,000 Asahi Breweries Ltd.............. 478,196
122,000 Asahi Chemical Industry Co.,
Ltd.............................. 730,315
99,000 Asahi Glass Co., Ltd............. 986,280
44,000 Ashikaga Bank Ltd................ 161,496
2,000 Autobacs Seven Co., Ltd.......... 158,700
322,000 Bank of Tokyo -- Mitsubishi
Ltd.............................. 6,472,077
96,000 Bank of Yokohama Ltd............. 541,117
67,000 Bridgestone Corp................. 1,557,458
14,000 Brother Industries Ltd........... 60,438
71,000 Canon, Inc....................... 1,935,855
19,000 Casio Computer Co., Ltd.......... 165,542
58,000 Chiba Bank Ltd................... 345,678
41,000 Chichibu Onoda Cement Corp....... 160,876
10,000 Chiyoda Corp.*................... 48,152
17,000 Chugai Pharmaceutical Co.,
Ltd.............................. 153,019
23,000 Citizen Watch Co., Ltd........... 177,681
51,000 Cosmo Oil Co., Ltd............... 244,237
10,350 Credit Saison Co., Ltd........... 253,255
3,000 CSK Corp......................... 113,781
19,000 Daicel Chemical Industries
Ltd.............................. 73,556
42,000 Daido Steel Co., Ltd............. 135,804
53,000 Daiei, Inc....................... 340,426
5,000 Daifuku Co., Ltd................. 65,979
19,000 Daiichi Pharmaceutical Corp...... 335,401
18,000 Daikin Industries Ltd............ 163,593
14,000 Daimaru, Inc..................... 80,626
56,000 Dainippon Ink & Chemicals,
Inc.............................. 241,755
63,000 Dainippon Printing Co., Ltd...... 1,425,937
8,000 Dainippon Screen Manufacturing
Co., Ltd......................... 75,505
7,000 Daito Trust Construction Co.,
Ltd.............................. 82,583
43,000 Daiwa House Industry Co., Ltd.... 526,086
7,000 Daiwa Kosho Lease Co., Ltd....... 54,199
113,000 Daiwa Securities Co., Ltd........ 892,703
27,000 Denki Kagaku Kogyo Kabushiki
Kaisha........................... 74,561
73,000 Denso Corp....................... 1,747,968
20,000 Ebara Corp....................... 300,620
22,000 Eisai Co., Ltd................... 417,198
19,100 Fanuc Ltd........................ 734,423
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
200,000 Fuji Bank, Ltd................... $ 3,006,204
43,000 Fuji Photo Film Co., Ltd......... 1,732,325
24,000 Fujikura Ltd..................... 224,417
25,000 Fujita Corp...................... 43,695
8,000 Fujita Kanko, Inc................ 100,673
155,000 Fujitsu Ltd...................... 2,153,718
46,000 Furukawa Electric Co., Ltd....... 293,052
38,000 Gunma Bank Ltd................... 342,043
12,000 Gunze Ltd........................ 54,741
61,000 Hankyu Corp...................... 337,438
13,000 Hankyu Department Store Co....... 137,464
32,000 Haseko*.......................... 51,175
18,000 Higo Bank........................ 118,605
2,000 Hirose Electric Co., Ltd......... 137,377
230,000 Hitachi Ltd...................... 2,572,751
71,000 Hitachi Zosen Corp............... 282,933
49,000 Hokuriku Bank.................... 168,286
68,000 Honda Motor Co., Ltd............. 2,050,161
8,000 House Foods Industry............. 141,921
9,000 Hoya Corp........................ 401,118
17,000 Inax Corp........................ 127,467
175,000 Industrial Bank of Japan......... 2,722,187
15,000 Isetan Co........................ 186,140
120,000 Itochu Corp...................... 647,033
12,000 Itoham Foods..................... 66,276
30,000 Ito-Yokado Co., Ltd.............. 1,743,423
149,000 Japan Airlines Co.*.............. 678,397
78,000 Japan Energy Corp................ 204,492
9,000 JGC Corp......................... 62,134
66,000 Joyo Bank........................ 365,096
26,000 JUSCO Co., Ltd................... 879,315
81,000 Kajima Corp...................... 474,971
13,000 Kamigumi Co., Ltd................ 73,276
14,000 Kandenko Co., Ltd................ 132,133
26,000 Kanebo Ltd.*..................... 47,715
18,000 Kaneka Corp...................... 112,942
81,900 Kansai Electric Power Co, Inc.... 1,581,744
50,000 Kao Corp......................... 694,748
117,000 Kawasaki Heavy Industries Ltd.... 544,971
30,000 Kawasaki Kisen Kaisha Ltd.*...... 60,561
274,000 Kawasaki Steel Corp.............. 893,140
36,000 Keihin Electric Express Railway
Co., Ltd......................... 169,256
10,000 Kikkoman Corp.................... 65,979
19,000 Kinden Corp...................... 268,985
137,000 Kinki Nippon Railway Co.......... 838,067
88,000 Kirin Brewery Co., Ltd........... 915,144
3,000 Kissei Pharmaceutical Co.,
Ltd.............................. 66,067
9,000 Kokuyo Co........................ 243,817
83,000 Komatsu Ltd...................... 674,561
4,000 Komori Corp...................... 95,080
25,000 Konica Corp...................... 159,705
10,000 Koyo Seiko Co., Ltd.............. 80,049
119,000 Kubota Corp...................... 583,405
35,000 Kumagai Gumi Co., Ltd............ 58,420
24,000 Kuraray Co., Ltd................. 239,098
9,000 Kurita Water Industries Ltd...... 239,885
</TABLE>
Continued
45
<PAGE> 48
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
15,000 Kyocera Corp..................... $ 1,192,869
31,000 Kyowa Hakko Kogyo Co............. 232,439
15,000 Lion Corp........................ 68,688
5,000 Maeda Road Construction.......... 43,039
11,000 Makita Corp...................... 161,496
126,000 Marubeni Corp.................... 572,577
27,000 Marui Co., Ltd................... 558,420
146,000 Matsushita Electric Industrial
Co., Ltd......................... 2,947,303
15,000 Meiji Milk Products Co., Ltd..... 68,557
27,000 Meiji Seika Co................... 148,650
31,000 Minebea Co., Ltd................. 330,508
185,000 Mitsubishi Chemical Corp......... 604,649
132,000 Mitsubishi Corp.................. 1,649,567
181,000 Mitsubishi Electric Corp......... 1,013,903
109,000 Mitsubishi Estate Co., Ltd....... 1,581,229
35,000 Mitsubishi Gas Chemical Co....... 143,144
233,000 Mitsubishi Heavy Industries
Ltd.............................. 1,789,801
12,000 Mitsubishi Logistics Corp........ 171,983
85,000 Mitsubishi Materials Corp........ 340,208
32,000 Mitsubishi Oil Co., Ltd.......... 142,620
17,000 Mitsubishi Paper Mills........... 66,556
44,000 Mitsubishi Rayon Co., Ltd........ 181,491
110,000 Mitsubishi Trust & Banking
Corp............................. 1,739,928
58,000 Mitsui Engineering & Shipbuilding
Co., Ltd.*....................... 126,715
68,000 Mitsui Fudosan Co., Ltd.......... 938,914
51,000 Mitsui Marine & Fire Insurance
Co., Ltd......................... 369,029
36,000 Mitsui Mining & Smelting Co...... 160,133
79,000 Mitsui OSK Lines, Ltd.*.......... 162,929
55,000 Mitsui Toatsu Chemicals, Inc..... 151,403
101,000 Mitsui Trust & Banking Co.,
Ltd.............................. 763,480
132,000 Mitsui & Co...................... 1,268,898
34,000 Mitsukoshi Ltd................... 242,157
5,000 Mori Seiki Co.................... 80,398
19,000 Murata Manufacturing Co., Ltd.... 757,144
20,000 Mycal Corp....................... 288,386
1,000 Nagase & Co...................... 7,926
57,000 Nagoya Railroad Co., Ltd......... 235,113
35,000 Nankai Electric Railway Co....... 178,624
131,000 NEC Corp......................... 1,831,687
24,000 NGK Insulators Ltd............... 264,266
15,000 NGK Spark Plug Co., Ltd.......... 163,856
32,000 Nichido Fire & Marine Insurance
Co............................... 233,785
16,000 Nichirei Corp.................... 79,839
17,000 Nihon Cement Co., Ltd............ 81,412
30,000 Nikon Corp....................... 505,986
6,000 Nippon Comsys Corp............... 89,137
90,000 Nippon Express Co., Ltd.......... 719,654
40,000 Nippon Fire & Marine Insurance
Co............................... 216,027
38,000 Nippon Light Metal Co., Ltd...... 138,478
16,000 Nippon Meat Packers, Inc......... 206,939
103,000 Nippon Oil Co., Ltd.............. 564,371
71,000 Nippon Paper Industries Co....... 411,369
MARKET
SHARES VALUE
- ---------- ------------
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
1,000 Nippon Sharyo Ltd................ $ 6,458
22,000 Nippon Sheet Glass Co., Ltd...... 81,133
17,000 Nippon Shinpan Co................ 61,505
10,000 Nippon Shokubai Kabushiki Kaisha
Co............................... 79,525
583,000 Nippon Steel Corp................ 1,864,703
874 Nippon Telegraph & Telephone
Corp............................. 8,401,641
88,000 Nippon Yusen Kabushiki Kaisha.... 342,218
19,000 Nishimatsu Construction.......... 132,832
212,000 Nissan Motor Co., Ltd............ 1,647,015
16,000 Nisshinbo Industries, Inc........ 145,416
9,000 Nissin Food Products Co., Ltd.... 234,379
10,000 Nitto Denko Corp................. 194,879
297,000 NKK Corp......................... 638,486
136,000 Nomura Securities Co., Ltd....... 1,877,829
8,000 Noritake Co., Ltd................ 72,009
40,000 NSK Ltd.......................... 257,625
33,000 NTN Corp......................... 184,855
59,000 Obayashi Corp.................... 395,464
52,000 Odakyu Electric Railway Co....... 309,010
87,000 Oji Paper Co., Ltd............... 539,046
7,000 Okuma Corp....................... 61,784
13,000 Okumura Corp..................... 68,959
18,000 Olympus Optical Co., Ltd......... 162,020
19,000 Omron Corp....................... 403,478
12,000 Onward Kashiyama Co., Ltd........ 199,248
24,000 Orient Corp...................... 97,946
4,000 Orix Corp........................ 296,775
214,000 Osaka Gas Co., Ltd............... 615,276
1,100 Oyo Corp......................... 42,777
18,000 Penta-Ocean Construction......... 58,201
12,000 Pioneer Electronic Corp.......... 291,532
8,000 QP Corp.......................... 71,310
9,000 Rohm Co., Ltd.................... 928,078
290,000 Sakura Bank Ltd.................. 2,225,115
13,000 Sankyo Aluminum Industry Co...... 42,034
37,000 Sankyo Co., Ltd.................. 1,244,866
16,000 Sanwa Shutter Corp............... 145,416
164,000 Sanyo Electric Co................ 736,660
24,000 Sapporo Breweries Ltd............ 199,668
13,000 Sato Kogyo Co., Ltd.............. 27,266
9,000 Secom Co., Ltd................... 661,452
6,700 Sega Enterprises Ltd............. 222,494
8,000 Seino Transportation............. 86,691
15,000 Seiyu Ltd........................ 120,467
46,000 Sekisui Chemical Co., Ltd........ 466,311
59,000 Sekisui House Ltd................ 598,095
27,000 77 Bank.......................... 261,907
95,000 Sharp Corp....................... 1,311,719
2,000 Shimachu Co...................... 60,124
10,000 Shimano, Inc..................... 209,735
66,000 Shimizu Corp..................... 396,242
28,000 Shin-Etsu Chemical Co., Ltd...... 743,861
25,000 Shionogi & Co., Ltd.............. 194,005
29,000 Shiseido Co., Ltd................ 478,983
67,000 Shizuoka Bank.................... 767,019
</TABLE>
Continued
46
<PAGE> 49
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
74,000 Showa Denko Kabushiki Kaisha*.... $ 194,005
5,000 Skylark Co., Ltd................. 76,466
4,000 SMC Corp......................... 338,372
23,000 Snow Brand Milk Products Co.,
Ltd.............................. 118,588
27,200 Sony Corp........................ 2,374,621
217,000 Sumitomo Bank Ltd................ 3,565,148
137,000 Sumitomo Chemical Co............. 621,367
89,000 Sumitomo Corp.................... 847,767
59,000 Sumitomo Electric Industries
Ltd.............................. 989,950
12,000 Sumitomo Forestry Co., Ltd....... 132,133
63,000 Sumitomo Heavy Industries,
Ltd.............................. 254,907
50,000 Sumitomo Marine & Fire Insurance
Co............................... 410,731
266,000 Sumitomo Metal Industries Ltd.... 757,808
40,000 Sumitomo Metal Mining Co......... 283,142
23,000 Sumitomo Osaka Cement Co., Ltd... 72,359
76,000 Taisei Corp...................... 352,670
28,000 Taisho Pharmaceutical Co......... 756,095
11,000 Takara Shuzo..................... 79,498
7,000 Takara Standard Co............... 61,173
21,000 Takashimaya Co., Ltd............. 286,288
65,000 Takeda Chemical Industries....... 1,829,065
69,000 Teijin Ltd....................... 325,614
14,000 Teikoko Oil Co., Ltd............. 62,763
64,000 Tobu Railway Co., Ltd............ 295,866
700 Toho Co.......................... 115,616
41,500 Tohoku Electric Power............ 739,841
171,000 Tokai Bank....................... 1,763,348
131,000 Tokio Marine & Fire Insurance
Co............................... 1,717,207
12,000 Tokyo Broadcasting System........ 246,439
11,000 Tokyo Dome Corp.................. 148,038
94,000 Tokyo Electric Power Co.......... 1,979,725
13,200 Tokyo Electron Ltd............... 632,142
238,000 Tokyo Gas Co., Ltd............... 661,400
11,000 Tokyo Steel Manufacturing Co..... 123,045
5,000 Tokyo Style...................... 69,475
22,000 Tokyotokeiba..................... 63,445
92,000 Tokyu Corp....................... 571,633
58,000 Toppan Printing Co., Ltd......... 912,348
118,000 Toray Industries, Inc............ 842,489
42,000 Tosoh Corp.*..................... 142,410
18,000 Tostem Corp...................... 498,645
26,400 Toto Ltd......................... 325,299
17,600 Toyo Seikan Kaisha Ltd........... 390,667
49,000 Toyobo Ltd....................... 129,747
23,000 Toyoda Automatic Loom Works...... 522,590
261,000 Toyota Motor Corp................ 7,709,340
59,000 Ube Industries Ltd............... 171,694
5,000 Uni-Charm........................ 178,275
25,000 Unitika Ltd.*.................... 50,249
13,000 Uny Co., Ltd..................... 254,479
8,000 Wacoal Corp...................... 99,275
14,000 Yamaguchi Bank................... 210,434
13,000 Yamaha Corp...................... 238,574
91,000 Yamaichi Securities Co., Ltd..... 271,179
MARKET
SHARES VALUE
- ---------- ------------
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
27,000 Yamanouchi Pharmaceutical Co.,
Ltd.............................. $ 726,732
26,000 Yamato Transport Co., Ltd........ 324,915
15,000 Yamazaki Baking Co., Ltd......... 264,791
83,000 Yasuda Trust & Banking........... 317,696
18,000 Yokogawa Electric Corp........... 156,515
------------
155,401,480
------------
MALAYSIA -- 0.8%
16,000 AMMB Holdings Berhad............. 99,524
180,000 Amsteel Corp. Berhad............. 137,638
130,000 Golden Hope Plantations Berhad... 223,534
22,500 Highlands & Lowlands Berhad...... 34,410
63,000 Kuala Lumpur Kepong Berhad....... 156,002
55,000 Magnum Corp. Berhad.............. 82,805
45,500 Malayan Banking Berhad........... 477,713
92,400 Malaysia Mining Corp. Berhad..... 101,040
58,000 Multi-Purpose Holdings Berhad.... 81,347
13,500 Perlis Plantations Berhad........ 39,580
22,000 Perusahaan Otomobil Nasional
Berhad........................... 102,853
13,000 Rashid Hussain Berhad............ 82,409
44,000 Resorts World Berhad............. 132,488
23,000 RHB Capital Berhad............... 72,900
10,300 Rothmans of Pall Mall (Malaysia)
Berhad........................... 101,204
51,000 Selangor Properties Berhad....... 48,899
11,500 Shell Refining Co. (Malaysia)
Berhad........................... 36,450
93,040 Sime Darby Berhad................ 309,641
120,000 Telekom Malaysia Berhad.......... 561,013
112,000 Tenega Nasional Berhad........... 545,799
32,326 United Engineers (Malaysia)
Ltd.............................. 233,095
17,000 YTL Corp. Berhad................. 52,536
------------
3,712,880
------------
NETHERLANDS -- 2.0%
66,684 ABN Amro Holding NV.............. 1,245,652
4,383 Akzo Nobel NV.................... 601,753
38,430 Elsevier NV...................... 643,337
2,952 Getronics NV..................... 95,521
2,670 Heineken NV...................... 456,510
1,950 IHC Caland NV.................... 106,789
40,887 ING Groep NV..................... 1,888,548
3,862 KLM Royal Dutch Air Lines NV..... 119,251
6,475 Koninklijke Ahold N.V............ 547,261
1,305 Koninklijke Hoogovens NV CVA..... 72,865
5,120 Koninklijke KNP BT NV............ 116,808
1,133 Koninklijke Pakhoed NV........... 40,016
23,344 Koninklijke Royal PTT Nederland
NV............................... 917,403
976 Oce NV........................... 126,127
16,840 Philips Electronics NV........... 1,208,430
126,588 Royal Dutch Petroleum Co......... 6,596,483
1,107 Stad Rotterdam NV................ 50,680
</TABLE>
Continued
47
<PAGE> 50
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
NETHERLANDS (CONTINUED)
255 Stork NV......................... $ 10,412
9,031 Unilever NV CVA.................. 1,904,541
3,211 Wolters Kluwer NV CVA............ 391,681
------------
17,140,068
------------
NEW ZEALAND -- 0.5%
262,600 Brierley Investments Ltd......... 256,279
169,581 Carter Holt Harvey Ltd........... 437,884
400 Ceramco Corp., Ltd............... 396
10,298 Fisher & Paykel Industries
Ltd.............................. 40,131
36,411 Fletcher Challenge Building...... 109,318
37,441 Fletcher Challenge Energy........ 112,918
85,152 Fletcher Challenge Forests....... 123,499
72,922 Fletcher Challenge Paper......... 176,434
53,700 Lion Nathan Ltd.................. 135,750
185,365 Telecom Corp. of New Zealand
Ltd.............................. 942,205
------------
2,334,814
------------
NORWAY -- 1.4%
10,500 Aker RGI ASA, Series A........... 206,535
2,100 Aker RGI ASA, Series B........... 37,004
14,100 Bergesen d.y. ASA -- Class A..... 334,164
1,400 Bergesen d.y. ASA -- Class B..... 33,084
61,300 Christiania Bank Og
Kreditkasse...................... 208,498
1,000 Dyno Industrier ASA.............. 25,817
15,650 Hafslund ASA, Series A........... 94,061
10,326 Hafslund ASA, Series B........... 56,138
8,950 Kvaerner ASA, Series A........... 542,199
2,200 Leif Hoegh & Co. ASA............. 47,481
60,850 Norsk Hydro ASA.................. 3,316,464
3,200 Norske Skogindustrier ASA --
Class A.......................... 111,026
16,050 Nycomed ASA, Series A............ 236,778
10,326 Nycomed ASA, Series B............ 147,397
10,500 Orkla ASA, Series A.............. 774,506
8,300 Petroleum Geo-Services ASA*...... 400,216
73,500 Storebrand ASA*.................. 438,743
1,200 Unitor ASA....................... 17,211
------------
7,027,322
------------
SINGAPORE -- 0.8%
53,600 City Developments Ltd............ 524,810
65,000 DBS Land Ltd..................... 205,476
12,750 Development Bank of Singapore
Ltd.............................. 160,506
12,000 Fraser & Neave Ltd............... 85,603
29,600 Haw Par Brothers International
Ltd.............................. 66,659
11,000 Inchcape Berhad.................. 39,620
2,000 Jurong Shipyard Ltd.............. 8,672
8,000 Keppel Corp., Ltd.*.............. 35,528
2,000 Keppel Corp., Ltd., Class A*..... 8,672
60,750 NatSteel Ltd..................... 154,653
59,000 Neptune Orient Lines Ltd......... 52,817
31,898 Oversea-Chinese Banking Corp.,
Ltd.............................. 330,168
1,000 Overseas Union Enterprise Ltd.... 4,616
1,100 Shangri-La Hotel Ltd............. 3,293
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SINGAPORE (CONTINUED)
91,000 Singapore Airlines Ltd........... $ 814,631
6,000 Singapore Press Holdings Ltd..... 50,355
10,320 Singapore Press Holdings Ltd.
(Foreign)........................ 207,865
471,000 Singapore Telecommunications
Ltd.............................. 869,630
7,000 Straits Trading Co., Ltd......... 15,274
8,000 United Industrial Corp., Ltd..... 6,043
29,350 United Overseas Bank Ltd......... 301,741
52,000 United Overseas Land Ltd......... 70,553
------------
4,017,185
------------
SPAIN -- 2.7%
400 Acerinox SA...................... 75,093
17,727 Autopistas Concesionaria Espanola
SA............................... 241,069
21,147 Banco Bilbao Vizcaya SA.......... 1,721,150
12,671 Banco Central Hispanoamericano
SA............................... 464,382
45,096 Banco Santander SA............... 1,392,097
10,100 Corporacion Bancaria de Espana
SA............................... 566,567
675 Corporacion Financiera Alba SA... 85,781
2,300 Corporacion Mapfre............... 122,608
3,400 Dragados & Construcciones SA..... 70,742
400 Ebro Agricolas, Compania de
Alimentacion SA.................. 7,819
1,650 El Aguila SA*.................... 7,898
100 Empresa Nacional de Celulosas
SA............................... 1,768
24,470 Empresa Nacional de Electricidad
SA............................... 2,058,161
700 Ercros SA*....................... 714
752 Fomento de Construcciones y
Contratas SA..................... 96,077
3,456 Gas Natural SDG SA............... 756,433
86,924 Iberdrola SA..................... 1,099,331
248 Inmobiliaria Metropolitana Vasco
Central SA....................... 8,997
200 Inmobiliaria Urbis SA*........... 1,924
820 Portland Valderrivas SA.......... 67,130
500 Prosegur, CIA de Seguridad SA.... 6,120
28,298 Repsol SA........................ 1,198,725
2,498 Sarrio SA........................ 9,851
3,400 Sociedade General de Aguas de
Barcelona SA..................... 139,403
2,806 Tabacalera SA, Series A.......... 150,918
88,875 Telefonica de Espana............. 2,574,334
23,666 Union Electrica Fenosa SA........ 215,628
5,400 Uralita SA....................... 60,400
2,361 Vallehermoso SA.................. 63,813
1,221 Viscofan Industria Navarra de
Envolturas Celulosicassa SA...... 28,601
------------
13,293,534
------------
SWEDEN -- 1.5%
39,000 ABB AB, Series A................. 547,244
28,500 ABB AB, Series B................. 398,067
76,400 Astra AB, Series A............... 1,422,796
13,333 Astra AB, Series B............... 237,092
</TABLE>
Continued
48
<PAGE> 51
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SWEDEN (CONTINUED)
8,250 Atlas Copco AB, Series A......... $ 215,522
500 Atlas Copco AB, Series B......... 12,965
3,700 Electrolux AB, Series B.......... 267,007
300 Esselte AB, Series B............. 7,061
1,850 Granges AB*...................... 24,883
4,400 Scancem AB -- Class A............ 176,401
12,000 Skandia Forsakrings AB........... 442,296
100 Skanska AB, Series B............. 4,423
9,300 SKF AB, Series A................. 229,722
10,100 SKF AB, Series B................. 261,239
14,500 Stora Kopparbergs Bergslags
Aktiebolag, Series A............. 234,404
3,250 Stora Kopparbergs Bergslags
Aktiebolag, Series B............. 52,959
3,800 Svenska Cellusoa AB, Series B.... 80,842
6,300 Svenska Handlesbanken -- Class
B................................ 185,764
54,600 Telefonaktiebolaget LM Ericsson,
Series B......................... 2,150,140
7,960 Trelleborg AB, Series B.......... 130,739
19,000 Volvo AB, Series B............... 508,641
------------
7,590,207
------------
SWITZERLAND -- 4.8%
450 ABB AG, Bearer Shares............ 682,169
390 Adecco SA........................ 149,810
40 Alusuisse-Lonza Holding AG,
Bearer........................... 41,019
225 Alusuisse-Lonza Holding AG,
Registered....................... 233,357
11,720 Credit Suisse Group,
Registered....................... 1,507,357
5 Danzas Holding AG, Registered.... 977
30 Fischer (Georg) AG, Bearer....... 41,774
436 Holderbank Financiere Glarus
AG............................... 412,418
65 Jelmoli Holding AG, Bearer....... 40,574
325 Jelmoli Holding AG, Registered... 42,357
2,468 Nestle SA, Registered............ 3,260,533
461 Novartis AG, Bearer.............. 737,423
3,879 Novartis AG, Registered.......... 6,210,872
439 Roche Holding AG................. 3,976,400
94 Roche Holding AG, Bearer......... 1,292,794
220 Sairgroup*....................... 246,884
15 Schindler Holding AG,
Participating Certificates....... 18,778
4,380 Schweizerische Bankverein,
Registered*...................... 1,173,228
715 Schweizerische
Rueckversicherungs-Gesellschaft,
Registered....................... 1,012,776
81 SGS Societe Generale de
Surveillance Holding SA.......... 173,351
182 Sulzer AG, Registered............ 156,052
1,179 UBS -- Union Bank of Switzerland,
Bearer........................... 1,350,571
260 Valora Holding AG*............... 55,287
2,350 Zurich Versicherungsgesellschaft,
Registered....................... 936,550
------------
23,753,311
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM -- 16.6%
91,937 Abbey National PLC............... $ 1,254,689
10,902 AMEC PLC......................... 27,307
1,100 Amstrad PLC...................... 5,218
17,957 Anglian Water PLC................ 194,706
12,736 Argos PLC........................ 116,051
43,404 Arjo Wiggins Appleton PLC........ 127,138
57,800 Associated British Foods PLC..... 498,779
116,806 Barclays PLC..................... 2,317,251
171 Barratt Developments PLC......... 700
67,527 Bass PLC......................... 823,784
236,240 B.A.T. Industries PLC............ 2,113,312
19,014 BBA Group PLC.................... 112,340
571,016 BG PLC........................... 2,100,256
25,913 BICC Group PLC................... 76,119
48,524 Blue Circle Industries PLC....... 345,643
30,948 BOC Group PLC.................... 538,246
58,068 Boots Co., PLC................... 679,881
25,431 Bowthorpe PLC.................... 137,767
37,736 BPB PLC.......................... 203,799
27,566 British Aerospace PLC............ 613,161
62,219 British Airways PLC.............. 708,807
28,409 British Land Co., PLC............ 267,611
434,688 British Petroleum Co., PLC....... 5,400,565
112,200 British Sky Broadcasting Group
PLC.............................. 821,632
102,716 British Steel PLC................ 254,716
480,466 British Telecommunications PLC... 3,566,394
261,939 BTR PLC.......................... 895,867
171 Burmah Castrol PLC............... 2,896
169,616 Cable & Wireless PLC............. 1,559,663
65,202 Cadbury Schweppes PLC............ 581,102
56,913 Caradon PLC...................... 190,388
16,062 Caradon PLC -- Class B*.......... 25,930
43,042 Carlton Communications PLC....... 363,547
571,016 Centrica PLC*.................... 696,126
36,816 Coats Viyella PLC................ 78,123
800 Cobham PLC....................... 9,586
45,241 Commercial Union PLC............. 475,486
21,004 Courtaulds PLC................... 118,155
3,534 Courtaulds Textiles PLC.......... 18,027
4,808 De La Rue PLC.................... 29,527
6,722 Delta PLC........................ 30,933
32,574 Electrocomponents PLC............ 243,145
27,781 EMI Group PLC.................... 498,192
24,138 English China Clays PLC.......... 82,957
21,296 FKI PLC.......................... 60,253
185,160 General Electric Co., PLC........ 1,106,301
23,000 GKN PLC.......................... 395,995
267,838 Glaxo Wellcome PLC............... 5,527,460
60,492 Granada Group PLC................ 795,347
141,877 Grand Metropolitan PLC........... 1,373,073
2,436 Great Portland Estates PLC....... 8,433
68,616 Great Universal Stores PLC....... 694,322
146 Guardian Royal Exchange PLC...... 656
126,161 Guinness PLC..................... 1,234,623
35,421 Hammerson PLC.................... 275,597
42,127 Hanson PLC....................... 209,284
15,900 Harrisons & Crosfield PLC........ 29,373
</TABLE>
Continued
49
<PAGE> 52
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
27,842 Hepworth PLC..................... $ 109,820
205,989 HSBC Holdings PLC................ 6,178,643
18,984 IMI PLC.......................... 108,371
51,551 Imperial Chemical Industries
PLC.............................. 716,829
10,804 Johnson Matthey PLC.............. 104,111
43,973 Kingfisher PLC................... 499,111
43,589 Ladbroke Group PLC............... 170,481
3,446 Laird Group PLC.................. 20,044
34,945 Land Securities PLC.............. 492,897
40,782 LASMO PLC........................ 176,132
80,107 Legal & General Group PLC........ 542,621
3,101 Lex Service PLC.................. 19,431
418,478 Lloyds TSB Group PLC............. 4,290,275
40,589 Lonrho PLC....................... 86,129
91,724 LucasVarity PLC.................. 317,525
215,326 Marks & Spencer PLC.............. 1,784,669
8,499 Marley PLC....................... 17,681
13,249 MEPC PLC......................... 108,708
13,726 Mercury Asset Management Group
PLC.............................. 281,212
9,297 Meyer International PLC.......... 65,296
110,369 National Grid Group PLC.......... 403,193
73,066 National Power PLC............... 634,772
11,226 Next PLC......................... 126,767
13,207 Ocean Group PLC.................. 115,947
36,473 Pearson PLC...................... 422,183
40,525 Peninsular & Oriental Steam
Navigation Co.................... 404,671
30,432 Pilkington PLC................... 69,388
19,913 Provident Financial PLC.......... 184,597
127,933 Prudential Corp., PLC............ 1,238,124
16,186 Racal Electronic PLC............. 65,191
53,800 Rank Group PLC................... 340,697
17,647 Redland PLC...................... 100,005
72,596 Reed International PLC........... 703,182
113,455 Reuters Holdings PLC............. 1,195,251
24,358 Rexam PLC........................ 102,766
70,482 Rio Tinto PLC.................... 1,227,578
6,254 RMC Group PLC.................... 101,535
95,889 Rolls-Royce PLC.................. 366,255
52,967 Royal Bank of Scotland Group
PLC.............................. 493,216
101,127 Royal & Sun Alliance Insurance
Group PLC........................ 745,593
77,228 Rugby Group PLC.................. 155,522
69,423 Safeway PLC...................... 401,504
120,023 Sainsbury (J) PLC................ 728,105
12,579 Schroders PLC.................... 343,547
74,183 Scottish Power PLC............... 482,740
39,461 Scottish & Newcastle PLC......... 424,589
83,403 Sears PLC........................ 93,001
16,318 Sedgwick Group PLC............... 33,676
23,972 Slough Estates PLC............... 118,892
211,765 SmithKline Beecham PLC........... 3,896,225
12,464 Smiths Industries PLC............ 159,624
24,609 Southern Electric PLC............ 181,028
25,910 St. James's Place Capital PLC.... 56,490
MARKET
SHARES VALUE
- ---------- ------------
COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
39,582 T & N PLC........................ $ 94,862
54,248 Tarmac PLC....................... 112,856
23,280 Tate & Lyle PLC.................. 172,996
56,510 Taylor Woodrow PLC............... 166,468
142,679 Tesco PLC........................ 877,417
17,099 Thames Water PLC................. 197,355
26,219 Thorn PLC........................ 75,054
30,233 TI Group PLC..................... 263,408
23,478 Transport Development Group PLC.. 67,794
9,334 Unigate PLC...................... 75,110
62,187 Unilever PLC..................... 1,781,716
34,161 United Biscuits (Holdings) PLC... 116,267
33,914 United Utilities PLC............. 372,807
11,415 Vickers PLC...................... 39,041
200,168 Vodafone Group PLC............... 974,434
23,173 Williams PLC..................... 124,571
28,938 Willis Corroon Group PLC......... 62,369
31,929 Wilson Connolly Holdings PLC..... 85,289
30,094 Wimpey (George) PLC.............. 67,615
29,792 Wolseley PLC..................... 232,296
72,169 Zeneca Group PLC................. 2,385,403
------------
81,467,207
------------
TOTAL COMMON STOCKS.............. 481,753,512
(cost $373,510,033) ------------
PREFERRED STOCKS -- 0.6%
AUSTRALIA -- 0.1%
112,105 News Corp., Ltd., Limited Voting
Shares........................... 438,391
------------
AUSTRIA -- 0.1%
2,600 Bank Austria AG.................. 83,549
5,433 Creditanstalt-Bankverein......... 218,454
------------
302,003
------------
GERMANY -- 0.4%
168 MAN AG, Non-Voting............... 42,614
19,640 RWE AG........................... 685,837
3,800 Sap AG, Non-Voting............... 783,973
527 Volkswagen AG.................... 294,872
------------
1,807,296
------------
ITALY -- 0.0%
82,200 Fiat SpA......................... 151,694
------------
UNITED KINGDOM -- 0.0%
26,660 Southern Electric B Shares*...... 13,311
------------
TOTAL PREFERRED STOCKS........... 2,712,695
(cost $2,209,289) ------------
RIGHTS & WARRANTS -- 0.0%
AUSTRIA -- 0.0%
26,250 Bank Austria AG, Rights*......... 79,839
------------
BELGIUM -- 0.0%
568 Generale de Banque SA,
Warrants*........................ 6,099
------------
</TABLE>
Continued
50
<PAGE> 53
The Kent INTERNATIONAL GROWTH FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
RIGHTS & WARRANTS (CONTINUED)
FRANCE -- 0.0%
12,918 Compagnie Generale des Eaux,
Warrants......................... $ 7,745
------------
ITALY -- 0.0%
14,000 La Rinascente, Rights*........... 2,304
------------
TOTAL RIGHTS & WARRANTS.......... 95,987
------------
(cost $0)
INVESTMENT COMPANIES -- 0.9%
UNITED STATES -- 0.9%
2,419,396 Dreyfus Cash Management Money
Market Fund...................... 2,419,396
1,973,822 Federated Prime Obligations
Fund............................. 1,973,822
------------
TOTAL INVESTMENT COMPANIES....... 4,393,218
(cost $4,393,218) ------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
TOTAL INVESTMENTS -- 99.6%................... $488,955,412
(cost $380,112,540)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.4%........................ 2,116,175
------------
TOTAL NET ASSETS -- 100.00%.................. $491,071,587
=============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $491,071,587.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $125,621,244
Unrealized depreciation............... (16,778,372)
------------
Net unrealized appreciation........... $108,842,872
============
</TABLE>
* Non-income producing security.
At June 30, 1997, the International Growth Fund's open forward foreign currency
exchange contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
DELIVERY CONTRACT CONTRACT CONTRACT MARKET APPRECIATION
CURRENCY DATE PRICE** AMOUNT** VALUE VALUE (DEPRECIATION)
- ------------------------------------- ------------- -------- --------- --------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Short Contracts:
Hong Kong Dollar................... 07/07/97 7.7490 (614,982) $ (79,363) $ (79,380) $ (18)
Malaysian Ringgit.................. 07/03/97 2.5212 (133,343) (52,889) (52,830) 59
U.S. Dollar........................ 07/03/97 1.0000 (44,088) (44,088) (44,088) 0
U.S. Dollar........................ 07/08/97 1.0000 (79,602) (79,602) (79,602) 0
-------- -------- -----
Total Short Contracts: $(255,941) $(255,900) $ 41
======== ======== =====
Long Contracts:
Singapore Dollar................... 07/03/97 1.4277 62,944 $ 44,088 $ 44,021 $ (66)
Malaysian Ringgit.................. 07/08/97 2.5212 200,692 79,602 79,513 (88)
U.S. Dollar........................ 07/03/97 1.0000 52,889 52,889 52,889 0
U.S. Dollar........................ 07/07/97 1.0000 79,363 79,363 79,363 0
-------- -------- -----
$ 255,941 $ 255,786 $ (155)
======== ======== =====
</TABLE>
- ---------------
** Contract price is in local currency.
See Notes to Financial Statements.
51
<PAGE> 54
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- 97.8%
ADVERTISING -- 0.1%
4,000 Interpublic Group of Companies,
Inc.............................. $ 245,250
------------
AEROSPACE/DEFENSE EQUIPMENT -- 0.2%
11,400 Raytheon Co...................... 581,400
------------
AEROSPACE & DEFENSE -- 1.2%
34,672 Boeing Co........................ 1,839,783
3,000 General Dynamics Corp............ 225,000
9,294 Lockheed Martin Corp............. 962,510
10,100 McDonnell Douglas Corp........... 691,850
2,800 Northrop Grumman Corp............ 245,875
------------
3,965,018
------------
AGRICULTURAL OPERATIONS -- 0.1%
4,000 Pioneer Hi-Bred International,
Inc.............................. 320,000
------------
APPLIANCES -- HOUSEHOLD -- 0.1%
4,700 Maytag Corp...................... 122,787
3,600 Whirlpool Corp................... 196,425
------------
319,212
------------
AUTOMOTIVE -- DOMESTIC -- 1.6%
33,138 Chrysler Corp.................... 1,087,341
57,300 Ford Motor Co.................... 2,163,075
35,100 General Motors Corp.............. 1,954,631
------------
5,205,047
------------
AUTO/TRUCK -- ORIGINAL EQUIPMENT -- 0.3%
5,000 Dana Corp........................ 190,000
3,700 Eaton Corp....................... 323,056
3,520 Navistar International Corp.*.... 60,720
3,750 PACCAR, Inc...................... 174,141
6,000 TRW, Inc......................... 340,875
------------
1,088,792
------------
AUTO/TRUCK -- REPLACEMENT PARTS -- 0.1%
3,000 Echlin, Inc...................... 108,000
8,625 Genuine Parts Co................. 292,172
------------
400,172
------------
BANKS -- MAJOR REGIONAL -- 4.8%
20,744 Banc One Corp.................... 1,004,787
7,100 BankBoston Corp.................. 511,644
18,600 Bank of New York Co., Inc........ 809,100
9,600 Barnett Banks, Inc............... 504,000
5,100 Comerica, Inc.................... 346,800
10,300 CoreStates Financial Corp........ 553,625
6,400 First Bank System, Inc........... 546,400
15,053 First Chicago NBD Corp........... 910,707
13,825 First Union Corp................. 1,278,813
12,607 Fleet Financial Group, Inc....... 797,393
10,800 KeyCorp.......................... 603,450
12,500 Mellon Bank Corp................. 564,063
10,600 National City Corp............... 556,500
35,188 NationsBank Corp................. 2,269,626
18,000 Norwest Corp..................... 1,012,500
15,500 PNC Bank Corp.................... 645,187
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BANKS -- MAJOR REGIONAL (CONTINUED)
2,600 Republic New York Corp........... $ 279,500
10,600 SunTrust Banks, Inc.............. 583,662
7,100 U.S. Bancorp..................... 455,288
7,800 Wachovia Corp.................... 454,837
4,300 Wells Fargo & Co................. 1,158,850
------------
15,846,732
------------
BANKS -- MIDWEST -- 0.1%
5,100 Fifth Third Bancorp.............. 418,359
------------
BANKS -- MONEY CENTER -- 2.4%
34,148 BankAmerica Corp................. 2,204,680
3,800 Bankers Trust New York Corp...... 330,600
20,758 Chase Manhattan Corp............. 2,014,823
22,300 Citicorp......................... 2,688,544
8,900 J.P. Morgan & Co................. 928,937
------------
8,167,584
------------
BEVERAGES -- ALCOHOLIC -- 0.6%
1,800 Adolph Coors Co., Class B........ 47,925
23,870 Anheuser-Busch Cos., Inc......... 1,001,048
3,300 Brown-Forman Corp., Class B...... 161,081
17,900 Seagram Co., Ltd................. 720,475
------------
1,930,529
------------
BEVERAGES -- SOFT DRINKS -- 3.3%
119,400 Coca-Cola Co..................... 8,328,150
73,800 PepsiCo, Inc..................... 2,772,113
------------
11,100,263
------------
BUILDING PRODUCTS -- RETAIL/WHOLESALE -- 0.6%
23,421 Home Depot, Inc.................. 1,614,585
8,300 Lowe's Cos., Inc................. 308,138
------------
1,922,723
------------
BUILDING PRODUCTS -- WOOD -- 0.2%
5,300 Louisiana-Pacific Corp........... 111,962
9,550 Weyerhaeuser Co.................. 496,600
------------
608,562
------------
BUILDING & CONSTRUCTION -- MISCELLANEOUS --
0.2%
2,000 Armstrong World Industries,
Inc.............................. 146,750
7,800 Masco Corp....................... 325,650
2,600 Owens Corning.................... 112,125
------------
584,525
------------
BUILDING -- HEAVY CONSTRUCTION -- 0.1%
4,100 Fluor Corp....................... 226,269
2,000 Foster Wheeler Corp.............. 81,000
------------
307,269
------------
BUILDING -- MAINTENANCE & SERVICE -- 0.0%
3,100 Ecolab, Inc...................... 148,025
------------
BUILDING -- MOBILE/MANUFACTURING & RECREATIONAL
VEHICLES -- 0.0%
1,700 Fleetwood Enterprises, Inc....... 50,681
------------
</TABLE>
Continued
52
<PAGE> 55
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
BUILDING -- RESIDENTIAL/COMMERCIAL -- 0.0%
1,400 Centex Corp...................... $ 56,875
1,840 Kaufman & Broad Home Corp........ 32,315
1,200 Pulte Corp....................... 41,475
------------
130,665
------------
BUSINESS INFORMATION -- 0.2%
8,065 Cognizant Corp................... 326,632
8,265 Dun & Bradstreet Corp............ 216,956
------------
543,588
------------
BUSINESS SERVICES -- 0.0%
5,000 H&R Block, Inc................... 161,250
------------
CABLE TELEVISION -- 0.4%
15,700 Comcast Corp., Class A........... 335,587
32,000 Tele-Communications, Inc., Class
A*............................... 476,000
29,200 US WEST Media Group*............. 591,300
------------
1,402,887
------------
CHEMICALS -- DIVERSIFIED -- 2.2%
2,600 B.F. Goodrich Co................. 112,612
11,200 Dow Chemical Co.................. 975,800
3,800 Eastman Chemical Co.............. 241,300
54,400 E.I. DuPont de Nemours & Co...... 3,420,400
4,800 Hercules, Inc.................... 229,800
28,500 Monsanto Co...................... 1,227,281
8,700 PPG Industries, Inc.............. 505,688
3,000 Rohm & Haas Co................... 270,187
6,000 Union Carbide Corp............... 282,375
3,900 W.R. Grace & Co.................. 214,988
------------
7,480,431
------------
CHEMICALS -- SPECIALTY -- 0.5%
5,300 Air Products & Chemicals, Inc.... 430,625
6,937 Engelhard Corp................... 145,243
2,900 Great Lakes Chemical Corp........ 151,887
6,700 Morton International, Inc........ 202,256
3,200 Nalco Chemical Co................ 123,600
7,600 Praxair, Inc..................... 425,600
4,800 Sigma-Aldrich Corp............... 168,300
------------
1,647,511
------------
COMPUTERS -- LOCAL AREA NETWORK -- 1.0%
12,400 3COM Corp.*...................... 558,000
9,600 Bay Networks, Inc.*.............. 255,000
7,500 Cabletron Systems, Inc.*......... 212,344
32,000 Cisco Systems, Inc.*............. 2,148,000
16,700 Novell, Inc.*.................... 115,856
------------
3,289,200
------------
COMPUTERS -- MAINFRAME -- 1.3%
5,900 Amdahl Corp.*.................... 51,625
47,800 International Business Machines
Corp............................. 4,310,963
8,400 Unisys Corp.*.................... 64,050
------------
4,426,638
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS -- MEMORY DEVICES -- 0.3%
11,900 EMC Corp.*....................... $ 464,100
11,800 Seagate Technology, Inc.*........ 415,212
------------
879,312
------------
COMPUTERS -- MICRO -- 0.7%
6,100 Apple Computer, Inc.*............ 86,925
13,200 Compaq Computer Corp.*........... 1,310,100
1,900 Data General Corp.*.............. 49,400
8,100 Dell Computer Corp.*............. 951,244
------------
2,397,669
------------
COMPUTERS -- MINI -- 1.2%
7,400 Digital Equipment Corp.*......... 262,238
48,900 Hewlett-Packard Co............... 2,738,400
8,500 Silicon Graphics, Inc.*.......... 127,500
17,800 Sun Microsystems, Inc.*.......... 662,494
5,600 Tandem Computers, Inc.*.......... 113,400
------------
3,904,032
------------
COMPUTERS -- SERVICES -- 0.7%
14,100 Automatic Data Processing,
Inc.............................. 662,700
3,900 Ceridian Corp.*.................. 164,775
3,700 Computer Sciences Corp.*......... 266,863
6,900 Equifax, Inc..................... 256,594
21,600 First Data Corp.................. 949,050
1,200 Shared Medical Systems Corp...... 64,800
------------
2,364,782
------------
COMPUTERS -- SOFTWARE -- 3.1%
3,400 Adobe Systems, Inc............... 119,212
2,300 Autodesk, Inc.................... 88,119
17,512 Computer Associates
International, Inc............... 975,200
2,300 Intergraph Corp.*................ 19,550
57,700 Microsoft Corp.*................. 7,291,837
31,450 Oracle Corp.*.................... 1,584,294
6,100 Parametric Technology Corp.*..... 259,631
------------
10,337,843
------------
CONSUMER PRODUCTS -- MISCELLANEOUS -- 0.2%
3,600 American Greetings Corp., Class
A................................ 133,650
1,895 Jostens, Inc..................... 49,981
7,700 Newell Co........................ 305,113
7,200 Rubbermaid, Inc.................. 214,200
3,000 Tupperware Corp.................. 109,500
------------
812,444
------------
CONTAINERS -- METAL & GLASS -- 0.1%
1,500 Ball Corp........................ 45,094
6,200 Crown Cork & Seal Co., Inc....... 331,312
------------
376,406
------------
CONTAINERS -- PAPER & PLASTIC -- 0.0%
2,600 Bemis Co., Inc................... 112,775
------------
</TABLE>
Continued
53
<PAGE> 56
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
COSMETICS & TOILETRIES -- 1.0%
2,700 Alberto-Culver Co., Class B...... $ 75,600
6,400 Avon Products, Inc............... 451,600
26,832 Gillette Co...................... 2,542,332
5,300 International Flavors &
Fragrances, Inc.................. 267,650
------------
3,337,182
------------
DIVERSIFIED OPERATIONS -- 5.3%
8,520 Allegheny Teledyne, Inc.......... 230,040
13,600 AlliedSignal, Inc................ 1,142,400
2,250 Crane Co......................... 94,078
1,800 FMC Corp.*....................... 142,988
157,900 General Electric Co.............. 10,322,713
5,700 ITT Industries, Inc.............. 146,775
4,000 Johnson Controls, Inc............ 164,250
20,000 Minnesota Mining & Manufacturing
Co............................... 2,040,000
2,200 National Service Industries,
Inc.............................. 107,113
10,300 Rockwell International Corp...... 607,700
8,200 Tenneco, Inc..................... 370,538
7,900 Textron, Inc..................... 524,362
11,400 United Technologies Corp......... 946,200
30,600 Westinghouse Electric Corp....... 707,625
4,900 Whitman Corp..................... 124,031
------------
17,670,813
------------
ELECTRICAL COMPONENTS -- SEMICONDUCTORS -- 2.2%
6,800 Advanced Micro Devices, Inc.*.... 244,800
39,400 Intel Corp....................... 5,587,413
6,800 LSI Logic Corp.*................. 217,600
10,100 Micron Technology, Inc........... 403,369
6,800 National Semiconductor Corp.*.... 208,250
9,200 Texas Instruments, Inc........... 773,375
------------
7,434,807
------------
ELECTRONIC COMPONENTS -- MISCELLANEOUS -- 0.0%
2,100 Raychem Corp..................... 156,187
------------
ELECTRONIC MANUFACTURING MACHINES -- 0.2%
8,700 Applied Materials, Inc.*......... 616,069
------------
ELECTRONIC MEASURING INSTRUMENTS -- 0.0%
1,600 Tektronix, Inc................... 96,000
------------
ELECTRONIC -- CONNECTORS -- 0.2%
10,536 AMP, Inc......................... 439,878
2,600 Thomas & Betts Corp.............. 136,663
------------
576,541
------------
ENGINES -- INTERNAL COMBUSTION -- 0.0%
1,800 Cummins Engine Co., Inc.......... 127,013
------------
FINANCIAL -- CONSUMER LOANS -- 0.4%
2,600 Beneficial Corp.................. 184,762
4,700 Household International, Inc..... 551,956
16,125 MBNA Corp........................ 590,578
------------
1,327,296
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL -- INVESTMENT BANKERS -- 0.4%
15,900 Merrill Lynch & Co., Inc......... $ 948,037
5,200 Salomon, Inc..................... 289,250
4,400 Schwab (Charles) Corp............ 179,025
------------
1,416,312
------------
FINANCIAL -- LEASING COMPANY -- 0.0%
3,800 Ryder Systems, Inc............... 125,400
------------
FINANCIAL -- MISCELLANEOUS SERVICES -- 0.9%
22,800 American Express Co.............. 1,698,600
27,616 Morgan Stanley Dean Witter
Discover & Co.................... 1,189,214
------------
2,887,814
------------
FINANCIAL -- MORTGAGE & RELATED
SERVICES -- 1.1%
5,000 Countrywide Credit Industries,
Inc.............................. 155,937
33,500 Federal Home Loan Mortgage
Corp............................. 1,151,563
51,100 Federal National Mortgage
Assoc............................ 2,229,237
6,500 Green Tree Financial Corp........ 231,563
------------
3,768,300
------------
FINANCIAL -- SAVINGS & LOAN -- 0.2%
2,800 Golden West Financial Corp....... 196,000
6,600 Great Western Financial Corp..... 354,750
4,800 H.F. Ahmanson & Co............... 206,400
------------
757,150
------------
FOOD ITEMS -- WHOLESALE -- 0.1%
1,800 Fleming Cos., Inc................ 32,400
3,200 Supervalu, Inc................... 110,400
8,400 Sysco Corp....................... 306,600
------------
449,400
------------
FOOD -- CANNED -- 0.6%
22,400 Campbell Soup Co................. 1,120,000
17,700 H.J. Heinz Co.................... 816,412
------------
1,936,412
------------
FOOD -- CONFECTIONARY -- 0.2%
7,400 Hershey Foods Corp............... 409,313
5,600 Wm. Wrigley Jr. Co............... 375,200
------------
784,513
------------
FOOD -- FLOUR & GRAIN -- 0.2%
25,703 Archer-Daniels-Midland Co........ 604,020
------------
FOOD -- DIVERSIFIED -- 1.8%
11,525 ConAgra, Inc..................... 739,041
6,900 CPC International, Inc........... 636,956
7,800 General Mills, Inc............... 507,975
10,000 Kellogg Co....................... 856,250
6,600 Quaker Oats Co................... 296,175
5,080 Ralston Purina Group............. 417,512
23,100 Sara Lee Corp.................... 961,538
7,700 Unilever NV, ADR................. 1,648,281
------------
6,063,728
------------
</TABLE>
Continued
54
<PAGE> 57
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
FUNERAL SERVICES & RELATED -- 0.1%
11,500 Service Corp. International...... $ 378,062
------------
GLASS PRODUCTS -- 0.2%
11,000 Corning, Inc..................... 611,875
------------
HOTELS & MOTELS -- 0.4%
12,000 Hilton Hotels Corp............... 318,750
7,600 HFS, Inc.*....................... 440,800
5,600 ITT Corp.*....................... 341,950
6,100 Marriott International, Inc...... 374,387
------------
1,475,887
------------
INSURANCE -- ACCIDENT & HEALTH -- 0.1%
8,000 Aon Corp......................... 414,000
------------
INSURANCE -- BROKERS -- 0.2%
8,000 Marsh & McLennan Cos., Inc....... 571,000
------------
INSURANCE -- LIFE -- 0.6%
11,598 American General Corp............ 553,805
8,800 Conseco, Inc..................... 325,600
3,450 Jefferson-Pilot Corp............. 241,069
4,500 Providian Financial Corp.*....... 144,562
3,400 Torchmark Corp................... 242,250
3,182 TransAmerica Corp................ 297,716
6,800 UNUM Corp........................ 285,600
------------
2,090,602
------------
INSURANCE -- MULTI-LINE -- 1.5%
7,270 Aetna, Inc....................... 744,266
3,600 CIGNA Corp....................... 639,000
5,700 Hartford Financial Services
Group, Inc....................... 471,675
5,500 Loews Corp....................... 550,687
2,100 MBIA, Inc........................ 236,906
5,700 MGIC Investment Corp............. 273,244
30,878 Travelers Group, Inc............. 1,947,244
------------
4,863,022
------------
INSURANCE -- PROPERTY & CASUALTY -- 2.2%
21,199 Allstate Corp.................... 1,547,527
22,580 American International Group,
Inc.............................. 3,372,888
8,400 Chubb Corp....................... 561,750
3,900 General Re Corp.................. 709,800
5,000 Lincoln National Corp............ 321,875
6,100 Safeco Corp...................... 284,794
4,000 St. Paul Cos., Inc............... 305,000
5,300 USF&G Corp....................... 127,200
------------
7,230,834
------------
INSTRUMENTS -- CONTROL -- 0.2%
2,422 General Signal Corp.............. 105,660
6,100 Honeywell, Inc................... 462,837
------------
568,497
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
INSTRUMENTS -- SCIENTIFIC -- 0.1%
2,300 EG&G, Inc........................ $ 51,750
2,100 Millipore Corp................... 92,400
2,100 Perkin-Elmer Corp................ 167,081
------------
311,231
------------
LEISURE & RECREATION PRODUCTS -- 0.0%
4,800 Brunswick Corp................... 150,000
------------
LEISURE & RECREATION/GAMING -- 0.0%
4,900 Harrah's Entertainment, Inc.*.... 89,425
------------
MACHINE TOOLS & RELATED PRODUCTS -- 0.0%
1,900 Cincinnati Milacron, Inc......... 49,281
1,500 Giddings & Lewis, Inc............ 31,313
------------
80,594
------------
MACHINERY -- CONSTRUCTION/MINING -- 0.4%
9,100 Caterpillar, Inc................. 977,112
5,200 Ingersoll-Rand Co................ 321,100
------------
1,298,212
------------
MACHINERY -- ELECTRICAL -- 0.4%
21,400 Emerson Electric Co.............. 1,178,338
2,500 W.W. Grainger, Inc............... 195,469
------------
1,373,807
------------
MACHINERY -- FARM -- 0.3%
1,300 Briggs & Stratton Corp........... 65,000
3,600 Case Corp........................ 247,950
12,300 Deere & Co....................... 674,963
------------
987,913
------------
MACHINERY -- GENERAL INDUSTRIAL -- 0.5%
1,300 Aeroquip-Vickers, Inc............ 61,425
5,700 Cooper Industries, Inc........... 283,575
5,400 Dover Corp....................... 332,100
2,422 Harnischfeger Industries, Inc.... 100,513
12,000 Illinois Tool Works, Inc......... 599,250
3,550 Parker-Hannifin Corp............. 215,441
------------
1,592,304
------------
MACHINERY -- MATERIAL HANDLING -- 0.0%
400 NACCO Industries, Inc., Class
A................................ 22,575
------------
MACHINERY -THERMAL PROCESSOR -- 0.1%
7,200 Thermo Electron Corp.*........... 244,800
------------
MEDICAL INSTRUMENTS -- 0.4%
5,400 Biomet, Inc...................... 100,575
11,500 Medtronic, Inc................... 931,500
4,400 St. Jude Medical, Inc............ 171,600
3,500 U.S. Surgical Corp............... 130,375
------------
1,334,050
------------
MEDICAL PRODUCTS -- 0.5%
3,200 Allergan, Inc.................... 101,800
13,400 Baxter International, Inc........ 700,150
9,400 Boston Scientific Corp.*......... 577,512
</TABLE>
Continued
55
<PAGE> 58
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
MEDICAL PRODUCTS (CONTINUED)
3,600 Guidant Corp..................... $ 306,000
3,500 Mallinckrodt, Inc................ 136,500
------------
1,821,962
------------
MEDICAL -- BIOMEDICAL/GENETIC -- 0.2%
12,800 Amgen, Inc.*..................... 744,000
------------
MEDICAL -- DRUGS -- 7.7%
37,200 Abbott Laboratories.............. 2,483,100
4,100 Alza Corp.*...................... 118,644
31,000 American Home Products Corp...... 2,371,500
48,100 Bristol-Myers Squibb Co.......... 3,896,100
26,700 Eli Lilly & Co................... 2,918,644
58,100 Merck & Co, Inc.................. 6,013,350
31,100 Pfizer, Inc...................... 3,716,450
24,430 Pharmacia & Upjohn, Inc.......... 848,943
35,200 Schering-Plough Corp............. 1,685,200
13,100 Warner-Lambert Co................ 1,627,675
------------
25,679,606
------------
MEDICAL -- HEALTH MEDICAL ORGANIZATION -- 0.2%
7,800 Humana, Inc.*.................... 180,375
9,000 United Healthcare Corp........... 468,000
------------
648,375
------------
MEDICAL -- HOSPITAL -- 0.5%
32,149 Columbia/HCA Healthcare Corp..... 1,263,858
14,500 Tenet Healthcare Corp.*.......... 428,656
------------
1,692,514
------------
MEDICAL -- NURSING HOMES -- 0.1%
4,800 Beverly Enterprises, Inc.*....... 78,000
3,100 Manor Care, Inc.................. 101,138
------------
179,138
------------
MEDICAL -- OUTPATIENT/HOME CARE -- 0.1%
16,500 HEALTHSOUTH Corp.*............... 411,469
------------
MEDICAL -- WHOLESALE DRUG -- 0.0%
2,500 Cardinal Health, Inc............. 143,125
------------
MEDICAL/DENTAL SUPPLIES -- 1.4%
2,700 Bausch & Lomb, Inc............... 127,237
5,900 Becton, Dickinson & Co........... 298,688
2,700 C.R. Bard, Inc................... 98,044
64,100 Johnson & Johnson................ 4,126,437
------------
4,650,406
------------
MEDIA CONGLOMERATES -- 1.3%
26,960 Time Warner, Inc................. 1,300,820
17,000 Viacom, Inc., Class B*........... 510,000
32,500 Walt Disney Co................... 2,608,125
------------
4,418,945
------------
METAL -- GOLD -- 0.3%
17,900 Barrick Gold Corp................ 393,800
11,100 Battle Mountain Gold Co.......... 63,131
6,700 Echo Bay Mines Ltd............... 37,687
7,100 Homestake Mining Co.............. 92,744
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
METAL -- GOLD (CONTINUED)
7,515 Newmont Mining Corp.............. $ 293,085
11,500 Placer Dome, Inc................. 188,313
------------
1,068,760
------------
METAL -- MISCELLANEOUS -- 0.1%
4,500 Cyprus Amax Minerals Co.......... 110,250
8,000 Inco, Ltd........................ 240,500
------------
350,750
------------
METAL -- NON-FERROUS -- 0.6%
10,950 Alcan Aluminum Ltd............... 379,828
8,400 Aluminum Co. of America.......... 633,150
2,100 Asarco, Inc...................... 64,313
9,700 Freeport-McMoRan Copper & Gold,
Inc., Class B.................... 301,912
3,000 Phelps Dodge Corp................ 255,563
3,500 Reynolds Metals Co............... 249,375
------------
1,884,141
------------
METAL -- PROCESSING & FABRICATION -- 0.1%
3,000 Timken Co........................ 106,688
4,625 Worthington Industries, Inc...... 84,695
------------
191,383
------------
MOVIE/TELEVISION PRODUCTION & DISTRIBUTION --
0.0%
1,850 King World Productions, Inc...... 64,750
------------
OFFICE AUTOMATION & EQUIPMENT -- 0.5%
7,000 Pitney Bowes, Inc................ 498,750
15,567 Xerox Corp....................... 1,227,847
------------
1,726,597
------------
OFFICE SUPPLIES & FORMS -- 0.2%
5,000 Avery-Dennison Corp.............. 200,625
4,000 Deluxe Corp...................... 136,500
6,344 IKON Office Solutions, Inc....... 158,203
1,500 John H. Harland Co............... 34,219
4,600 Moore Corp., Ltd................. 90,563
------------
620,110
------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.2%
7,000 Baker Hughes, Inc................ 270,812
8,500 Dresser Industries, Inc.......... 316,625
2,600 McDermott International, Inc..... 75,887
------------
663,324
------------
OIL REFINING & MARKETING -- 0.1%
3,600 Ashland, Inc..................... 166,950
3,474 Sun Co., Inc..................... 107,694
------------
274,644
------------
OIL & GAS -- DRILLING -- 0.5%
4,100 Rowan Cos., Inc.*................ 115,569
11,900 Schlumberger Ltd................. 1,487,500
------------
1,603,069
------------
</TABLE>
Continued
56
<PAGE> 59
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
OIL-FIELD SERVICES -- 0.2%
6,100 Halliburton Co................... $ 483,425
2,600 Western Atlas, Inc.*............. 190,450
------------
673,875
------------
OIL -- INTERNATIONAL INTEGRATED -- 5.8%
31,500 Chevron Corp..................... 2,329,031
119,600 Exxon Corp....................... 7,355,400
37,800 Mobil Corp....................... 2,641,275
103,200 Royal Dutch Petroleum Co., ADR... 5,611,500
12,700 Texaco, Inc...................... 1,381,125
------------
19,318,331
------------
OIL -- PRODUCTION/PIPELINE -- 0.5%
5,050 Coastal Corp..................... 268,597
2,700 Columbia Gas System, Inc......... 176,175
12,300 Enron Corp....................... 501,994
3,400 ENSERCH Corp..................... 75,650
4,100 Sonat, Inc....................... 210,125
7,600 Williams Cos., Inc............... 332,500
------------
1,565,041
------------
OIL -- U.S. EXPLORATION & PRODUCTION -- 0.2%
6,000 Burlington Resources, Inc........ 264,750
1,200 Helmerich & Payne, Inc........... 69,150
5,100 Oryx Energy Co.*................. 107,738
4,772 Santa Fe Energy Resources,
Inc.*............................ 70,089
12,223 Union Pacific Resources Group,
Inc.............................. 304,047
------------
815,774
------------
OIL -- U.S. INTEGRATED -- 1.7%
4,500 Amerada Hess Corp................ 250,031
23,800 Amoco Corp....................... 2,069,112
15,500 Atlantic Richfield Co............ 1,092,750
2,300 Kerr-McGee Corp.................. 145,763
1,700 Louisiana Land & Exploration
Co............................... 97,112
15,900 Occidental Petroleum Corp........ 398,494
2,300 Pennzoil Co...................... 176,525
12,700 Phillips Petroleum Co............ 555,625
12,000 Unocal Corp...................... 465,750
13,900 USX-Marathon Group............... 401,363
------------
5,652,525
------------
PAINTS & RELATED PRODUCTS -- 0.1%
8,300 Sherwin-Williams Co.............. 256,263
------------
PAPER & RELATED PRODUCTS -- 1.2%
2,308 Boise Cascade Corp............... 81,501
4,600 Champion International Corp...... 254,150
4,400 Georgia-Pacific Corp............. 375,650
14,524 International Paper Co........... 705,322
4,200 James River Corp. of Virginia.... 155,400
26,940 Kimberly-Clark Corp.............. 1,340,265
2,500 Mead Corp........................ 155,625
1,400 Potlatch Corp.................... 63,350
4,746 Stone Container Corp............. 67,927
2,700 Temple-Inland, Inc............... 145,800
3,300 Union Camp Corp.................. 165,000
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
PAPER & RELATED PRODUCTS (CONTINUED)
4,950 Westvaco Corp.................... $ 155,616
2,700 Willamette Industries, Inc....... 189,000
------------
3,854,606
------------
PHOTOGRAPHY EQUIPMENT & SUPPLIES -- 0.4%
15,800 Eastman Kodak Co................. 1,212,650
2,189 Polaroid Corp.................... 121,489
------------
1,334,139
------------
POLLUTION CONTROL -- 0.4%
10,200 Browning-Ferris Industries,
Inc.............................. 339,150
15,100 Laidlaw, Inc., Class B........... 208,569
6,099 Pall Corp........................ 141,802
2,800 Safety-Kleen Corp................ 47,250
22,200 WMX Technologies, Inc............ 713,175
------------
1,449,946
------------
PRINTING -- COMMERCIAL -- 0.1%
7,000 R.R. Donnelley & Sons Co......... 256,375
------------
PROTECTION -- SAFETY -- 0.2%
8,100 Tyco International Ltd........... 563,456
------------
PUBLISHING -- BOOKS -- 0.1%
4,800 McGraw-Hill Cos., Inc............ 282,300
------------
PUBLISHING -- NEWSPAPERS -- 0.6%
4,600 Dow Jones & Co., Inc............. 184,863
6,800 Gannett, Inc..................... 671,500
4,400 Knight-Ridder, Inc............... 215,875
4,600 New York Times Co., Class A...... 232,300
4,600 Times Mirror Co., Class A........ 261,338
5,900 Tribune Co....................... 283,569
------------
1,849,445
------------
PUBLISHING -- PERIODICALS -- 0.0%
2,600 Meredith Corp.................... 75,400
------------
RETAIL/WHOLESALE -- AUTO PARTS -- 0.1%
7,300 AutoZone, Inc.*.................. 172,006
2,900 Pep Boys-Manny, Moe & Jack....... 98,781
------------
270,787
------------
RETAIL/WHOLESALE -- COMPUTERS -- 0.0%
2,664 Tandy Corp....................... 149,184
------------
RETAIL -- APPAREL/SHOES -- 0.4%
5,100 Charming Shoppes, Inc.*.......... 26,616
5,300 CVS Corp......................... 271,625
13,200 Gap, Inc......................... 513,150
13,078 Limited, Inc..................... 264,829
3,800 Nordstrom, Inc................... 186,438
7,400 TJX Cos., Inc.................... 195,175
------------
1,457,833
------------
RETAIL -- CONSUMER ELECTRONICS -- 0.1%
4,700 Circuit City Stores, Inc......... 167,144
------------
</TABLE>
Continued
57
<PAGE> 60
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- DISCOUNT -- 1.7%
10,150 Costco Cos., Inc.*............... $ 333,681
10,400 Dayton-Hudson Corp............... 553,150
23,400 Kmart Corp.*..................... 286,650
13,750 Toys 'R' Us, Inc.*............... 481,250
109,100 Wal-Mart Stores, Inc............. 3,688,944
6,500 Woolworth Corp.*................. 156,000
------------
5,499,675
------------
RETAIL -- DRUG STORE -- 0.3%
1,900 Longs Drug Stores Corp........... 49,756
5,900 Rite Aid Corp.................... 294,263
11,900 Walgreen Co...................... 638,137
------------
982,156
------------
RETAIL -- MAIL ORDER -- 0.2%
19,700 CUC International, Inc.*......... 508,506
------------
RETAIL -- MAJOR DEPARTMENT STORES -- 0.7%
3,416 Harcourt General, Inc............ 162,687
11,900 J.C. Penney, Inc................. 621,031
11,400 May Department Stores Co......... 538,650
18,875 Sears, Roebuck & Co.............. 1,014,531
------------
2,336,899
------------
RETAIL -- RESTAURANTS -- 0.6%
7,400 Darden Restaurants, Inc.......... 67,063
33,200 McDonald's Corp.................. 1,603,975
6,300 Wendy's International, Inc....... 163,406
------------
1,834,444
------------
RETAIL -- REGIONAL DEPARTMENT STORES -- 0.2%
5,500 Dillard Department Stores,
Inc.............................. 190,437
10,000 Federated Department Stores,
Inc.*............................ 347,500
1,800 Mercantile Stores Co., Inc....... 113,288
------------
651,225
------------
RETAIL -- SUPERMARKETS -- 0.5%
12,100 Albertson's, Inc................. 441,650
7,000 American Stores Co............... 345,625
2,900 Giant Food Inc., Class A......... 93,888
1,800 Great Atlantic & Pacific Tea Co.,
Inc.............................. 48,937
12,200 Kroger Co.*...................... 353,800
7,200 Winn-Dixie Stores, Inc........... 268,200
------------
1,552,100
------------
RUBBER -- TIRES -- 0.2%
3,800 Cooper Tire & Rubber Co.......... 83,600
7,500 Goodyear Tire & Rubber Co........ 474,844
------------
558,444
------------
SHOES & RELATED APPAREL -- 0.3%
13,900 Nike, Inc., Class B.............. 811,413
2,700 Reebok International Ltd......... 126,225
2,400 Stride Rite Corp................. 30,900
------------
968,538
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SOAP & CLEANING PREPARATIONS -- 1.8%
2,500 Clorox Co........................ $ 330,000
14,200 Colgate-Palmolive Co............. 926,550
32,600 Procter & Gamble Co.............. 4,604,750
------------
5,861,300
------------
STEEL -- PRODUCERS -- 0.2%
5,200 Armco, Inc.*..................... 20,150
5,400 Bethlehem Steel Corp.*........... 56,362
2,400 Inland Steel Industries, Inc..... 62,700
4,200 Nucor Corp....................... 240,450
4,140 USX-U.S. Steel Group, Inc........ 145,159
------------
524,821
------------
TELECOMMUNICATION EQUIPMENT -- 2.0%
4,355 Andrew Corp.*.................... 122,484
5,600 DSC Communications Corp.*........ 124,600
6,600 General Instrument Corp.*........ 165,000
1,900 Harris Corp...................... 159,600
30,823 Lucent Technologies, Inc......... 2,221,182
28,600 Motorola, Inc.................... 2,173,600
12,500 Northern Telecom Ltd............. 1,137,500
3,700 Scientific-Atlanta, Inc.......... 80,937
8,700 Tellabs, Inc.*................... 486,113
------------
6,671,016
------------
TELECOMMUNICATION -- CELLULAR -- 0.2%
24,200 AirTouch Communications, Inc.*... 662,475
------------
TEXTILE -- APPAREL -- 0.2%
3,700 Fruit of the Loom, Inc., Class
A*............................... 114,700
3,400 Liz Claiborne, Inc............... 158,525
1,800 Russell Corp..................... 53,325
3,100 VF Corp.......................... 263,888
------------
590,438
------------
TEXTILES -- HOME FURNISHINGS -- 0.0%
1,000 Springs Industries, Inc. Class
A................................ 52,750
------------
TOBACCO -- 1.7%
8,300 Fortune Brands, Inc.............. 309,694
116,900 Philip Morris Cos., Inc.......... 5,187,437
8,800 U.S.T., Inc...................... 244,200
------------
5,741,331
------------
TOOLS -- HAND HELD -- 0.1%
4,500 Black & Decker Corp.............. 167,344
2,950 Snap-On, Inc..................... 116,156
4,300 The Stanley Works................ 172,000
------------
455,500
------------
TOYS/GAME/HOBBY -- 0.2%
6,200 Hasbro, Inc...................... 175,925
14,047 Mattel, Inc...................... 475,842
------------
651,767
------------
TRANSPORTATION -- AIR FREIGHT -- 0.1%
5,500 Federal Express Corp.*........... 317,625
------------
</TABLE>
Continued
58
<PAGE> 61
The Kent INDEX EQUITY FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
TRANSPORTATION -- AIRLINE -- 0.3%
4,400 AMR Corp.*....................... $ 407,000
3,500 Delta Air Lines, Inc............. 287,000
7,000 Southwest Airlines Co............ 181,125
3,800 US Airways Group, Inc.*.......... 133,000
------------
1,008,125
------------
TRANSPORTATION -- RAILROAD -- 0.8%
7,400 Burlington Northern Santa Fe
Corp............................. 665,075
10,508 CSX Corp......................... 583,194
6,000 Norfolk Southern Corp............ 604,500
11,900 Union Pacific Corp............... 838,950
------------
2,691,719
------------
TRANSPORTATION -- TRUCKING -- 0.0%
1,900 Caliber System, Inc.............. 70,775
------------
UTILITIES -- ELECTRIC POWER -- 2.4%
9,100 American Electric Power Co....... 382,200
7,100 Baltimore Gas & Electric Co...... 189,481
7,300 Carolina Power & Light Co........ 261,887
10,200 Central & South West Corp........ 216,750
7,635 CINergy Corp..................... 265,793
11,300 Consolidated Edison Co. of New
York, Inc........................ 332,644
7,000 Detroit Edison Co................ 193,375
8,850 Dominion Resources, Inc.......... 324,131
17,306 Duke Power Co.................... 829,606
19,900 Edison International............. 495,013
11,400 Entergy Corp..................... 312,075
8,800 FPL Group, Inc................... 405,350
5,800 General Public Utilities Corp.... 208,075
11,300 Houston Industries, Inc.......... 242,244
7,000 Niagara Mohawk Power Corp.*...... 59,938
3,300 Northern States Power Co......... 170,775
7,300 Ohio Edison Co................... 159,231
19,700 Pacific Gas & Electric Co........ 477,725
14,200 PacifiCorp....................... 312,400
10,700 Peco Energy Co................... 224,700
7,900 PP&L Resources, Inc.............. 157,506
11,200 Public Service Enterprise Group,
Inc.............................. 280,000
32,800 Southern Co...................... 717,500
10,800 Texas Utilities Co............... 371,925
10,400 Unicom Corp...................... 231,400
4,900 Union Electric Co................ 184,669
------------
8,006,393
------------
UTILITIES -- GAS DISTRIBUTION -- 0.2%
4,600 Consolidated Natural Gas Co...... 247,537
1,000 Eastern Enterprises.............. 34,688
2,400 Nicor, Inc....................... 86,100
6,700 NorAm Energy Corp................ 102,175
1,300 ONEOK, Inc....................... 41,844
4,000 Pacific Enterprises.............. 134,500
1,700 People's Energy Corp............. 63,644
------------
710,488
------------
<CAPTION>
MARKET
SHARES VALUE
- ---------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- TELEPHONE -- 5.8%
9,000 Alltel Corp...................... $ 300,937
26,400 Ameritech Corp................... 1,793,550
78,256 AT&T Corp........................ 2,743,851
21,100 Bell Atlantic Corp............... 1,600,963
47,800 BellSouth Corp................... 2,216,725
7,900 Frontier Corp.................... 157,506
46,000 GTE Corp......................... 2,018,250
33,100 MCI Communications Corp.......... 1,267,109
21,200 NYNEX Corp....................... 1,221,650
43,909 SBC Communications, Inc.......... 2,716,869
20,700 Sprint Corp...................... 1,089,336
23,100 US WEST Communications Group..... 870,581
43,000 WorldCom, Inc.*.................. 1,376,000
------------
19,373,327
------------
TOTAL COMMON STOCKS.............. 326,412,552
(cost $192,361,684) ------------
INVESTMENT COMPANIES -- 2.1%
3,200,000 Dreyfus Cash Management Money
Market Fund...................... 3,200,000
3,854,861 Federated Prime Value Obligations
Money Market Fund................ 3,854,861
------------
TOTAL INVESTMENT COMPANIES....... 7,054,861
------------
(cost $7,054,861)
TOTAL INVESTMENTS -- 99.9%................... 333,467,413
(cost $199,416,545)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.1%........................ 169,544
------------
TOTAL NET ASSETS -- 100.0%................... $333,636,957
=============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $333,636,957.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $136,775,460
Unrealized depreciation...............
(2,724,592)
------------
Net unrealized appreciation...........
$134,050,868
============
</TABLE>
(b) Security has been deposited as initial margin on open future contracts.
* Non-income producing security.
ADR American Depository Receipt.
At June 30, 1997, the Portfolio's open future contracts were as follows:
<TABLE>
<CAPTION>
# OF OPENING CURRENT MARKET
CONTRACTS CONTRACT TYPE POSITION VALUE
- --------- --------------- ---------- ----------
<S> <C> <C> <C>
S & P 500
14 September 1997 $6,114,490 $6,231,750
</TABLE>
See Notes to Financial Statements.
59
<PAGE> 62
The Kent SHORT TERM BOND FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<S> <C> <C>
CORPORATE NOTES & BONDS -- 60.5%
BANKING -- 6.1%
$ 5,000,000 ABN Amro Bank, 6.63%,
10/31/01....................... $ 4,965,775
5,000,000 Chase Manhattan Corp., 7.50%,
12/1/97........................ 5,029,550
------------
9,995,325
------------
BROKERS -- 8.9%
5,000,000 Goldman Sachs Group, L.P.,
6.10%, 4/15/98 (b)............. 4,982,150
6,000,000 Morgan Stanley Group, Inc.,
Medium Term Note, 6.50%,
3/30/01........................ 5,953,200
3,750,000 Salomon, Inc., 6.50%, 3/1/00... 3,731,100
------------
14,666,450
------------
COMPUTER HARDWARE MANUFACTURING -- 3.0%
5,000,000 International Business Machines
Corp., 6.38%, 11/1/97.......... 5,007,650
------------
FINANCE -- 26.4%
4,000,000 American Express Credit, 6.50%,
8/1/00......................... 3,993,960
5,329,000 Associates Corp. N.A., 5.25%,
3/30/00........................ 5,155,381
4,000,000 Ford Motor Credit Co., 6.38%,
9/15/99........................ 3,994,760
5,000,000 General Motors Acceptance
Corp., Medium Term Note, 8.25%,
1/23/98........................ 5,058,200
5,000,000 Household Finance Corp., 7.28%,
7/22/99........................ 5,079,100
5,000,000 MCN Investment Corp., 6.89%,
1/16/02........................ 4,996,150
5,000,000 New England Education, Loan
Marketing Corp., Medium Term
Note, 6.13%, 7/17/98 5,000,050
5,000,000 Norwest Financial, Inc., 7.88%,
2/15/02........................ 5,214,499
5,000,000 Smith Barney Holdings, Inc.,
5.88%, 2/1/01.................. 4,874,200
------------
43,366,300
------------
PHARMACEUTICALS -- 3.1%
5,000,000 American Home Products Corp.,
7.70%, 2/15/00................. 5,144,450
------------
RETAIL -- 3.4%
5,500,000 Sears, Roebuck & Co., 8.45%,
11/1/98........................ 5,648,830
------------
TELECOMMUNICATIONS -- 3.6%
6,000,000 Southwestern Bell Telephone
Co., Medium Term Note, 6.13%,
3/12/01........................ 5,891,400
------------
TRANSPORTATION -- 3.0%
5,000,000 Ryder System, Inc., Medium Term
Note, 7.88%, 11/24/97.......... 5,030,050
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- -------------
<S> <C> <C>
CORPORATE NOTES & BONDS (CONTINUED)
UTILITIES -- 3.0%
$ 5,000,000 Georgia Power Co., First
Mortgage, 6.13%, 9/1/99........ $ 4,970,100
------------
TOTAL CORPORATE NOTES & BONDS.. 99,720,555
(cost $100,191,917) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.0%
FEDERAL HOME LOAN MORTGAGE CORP. -- 3.0%
5,000,000 4.65%*, 3/11/98................ 4,984,550
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................... 4,984,550
(cost $5,000,000) ------------
U.S. GOVERNMENT OBLIGATIONS -- 27.8%
U.S. TREASURY NOTES -- 27.8%
5,000,000 5.13%, 11/30/98................ 4,943,750
13,500,000 7.50%, 10/31/99................ 13,883,940
16,500,000 6.63%, 7/31/01................. 16,654,605
10,000,000 7.50%, 11/15/01................ 10,420,300
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS.................... 45,902,595
(cost $45,346,602) ------------
INVESTMENT COMPANIES -- 7.0%
5,064,237 Dreyfus Cash Management Money
Market Fund.................... 5,064,237
6,520,806 Federated Prime Value
Obligations Money Market Fund.. 6,520,806
------------
TOTAL INVESTMENT COMPANIES..... 11,585,043
(cost $11,585,043) ------------
TOTAL INVESTMENTS............................ 162,192,743
(cost $162,123,562) (a) - 98.3%
OTHER ASSETS IN EXCESS OF LIABILITIES 1.7%... 2,872,249
------------
TOTAL NET ASSETS -- 100.0%................... $ 165,064,992
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $165,064,992.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................ $ 1,021,625
Unrealized depreciation................ (952,444)
------------
Net unrealized appreciation............ $ 69,181
============
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects final maturity date.
See Notes to Financial Statements.
60
<PAGE> 63
The Kent INTERMEDIATE BOND FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
CORPORATE NOTES & BONDS -- 23.6%
BANKING -- 6.9%
$ 6,000,000 Bank of Montreal-Chicago,
7.80%, 4/1/07.................. $ 6,244,320
5,500,000 Bank of New York Co., Inc.,
7.88%, 11/15/02................ 5,750,360
5,000,000 J.P. Morgan & Co., 7.63%,
9/15/04........................ 5,189,750
5,000,000 MBNA America Bank, N.A., 7.25%,
9/15/02........................ 5,039,200
5,000,000 NCNB Corp., 9.38%, 9/15/09..... 5,800,750
8,000,000 Royal Bank of Scotland, 6.38%,
2/1/11......................... 7,319,520
9,350,000 Societe Generale New York,
7.40%, 6/1/06.................. 9,448,269
7,000,000 Societe Generale New York,
9.88%, 7/15/03................. 8,007,300
------------
52,799,469
------------
BROKERS -- 1.3%
5,000,000 Salomon, Inc., 7.25%, 5/1/01... 5,058,000
5,000,000 Salomon, Inc., Medium Term
Note, 6.22%*, 2/15/99.......... 5,017,850
------------
10,075,850
------------
FINANCE -- 14.6%
5,000,000 Associates Corp., N.A., Medium
Term Note, 6.52%, 10/11/02..... 4,928,400
11,000,000 Caterpillar Financial Services,
6.95%, 11/1/00................. 11,095,920
15,000,000 Chrysler Finance, 6.28%,
6/23/99........................ 14,988,300
5,000,000 First Union Institutional
Capital I, 8.04%, 12/1/26,
Callable 12/1/06 @ 104.02...... 4,986,700
10,000,000 Ford Capital, Guaranteed Notes,
9.88%, 5/15/02................. 11,251,000
8,400,000 Ford Motor Credit Corp., Medium
Term Note, 9.03%, 12/30/09,
Callable 12/30/04 @ 100........ 9,223,956
5,000,000 General Electric Capital Corp.,
6.66%*, 5/1/18, Callable 5/1/00
@ 100.......................... 5,013,450
5,000,000 Homeside Lending Inc., 6.88%,
6/30/02........................ 4,998,350
5,000,000 Household Finance Corp., 8.00%,
8/1/04......................... 5,252,850
8,000,000 HSBC America Capital II, 8.38%,
5/15/27, Callable 5/15/07 @
104.19(b)...................... 8,102,080
5,000,000 Lehman Brothers, Inc., 7.38%,
1/15/07........................ 4,992,550
10,000,000 New England Education, Loan
Marketing Corp., Medium Term
Note, 6.13%, 7/17/98........... 10,000,100
5,000,000 Sears Roebuck Acceptance Corp.,
Medium Term Note, 6.86%,
8/6/01......................... 5,021,250
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
CORPORATE NOTES & BONDS (CONTINUED)
FINANCE (CONTINUED)
$ 5,000,000 Smith Barney Holdings, Inc.,
5.63%, 11/15/03................ $ 4,896,150
8,000,000 Smith Barney Holdings, Inc.,
7.38%, 5/15/07................. 8,065,200
------------
112,816,256
------------
TELECOMMUNICATIONS -- 0.8%
6,000,000 Bell Canada, 7.75%, 4/1/06..... 6,264,540
------------
TOTAL CORPORATE NOTES & BONDS.. 181,956,115
(cost $185,694,050) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.3%
FEDERAL HOME LOAN BANK -- 0.6%
5,000,000 6.49%, 1/8/04.................. 4,960,150
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 2.5%
5,000,000 4.65%*, 3/11/98................ 4,984,550
10,410,000 8.12%, 1/31/05................. 11,228,121
3,000,000 7.22%, 6/14/06................. 3,070,770
------------
19,283,441
------------
FEDERAL NATIONAL MORTGAGE ASSOC. -- 2.2%
7,950,000 7.35%, 3/28/05................. 8,224,514
9,100,000 6.00%, 1/8/04.................. 8,619,338
------------
16,843,852
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................... 41,087,443
(cost $36,325,737) ------------
U.S. GOVERNMENT OBLIGATIONS -- 63.0%
U.S. TREASURY BONDS -- 8.9%
30,000,000 9.13%, 5/15/09................. 34,068,600
32,000,000 7.50%, 11/15/16................ 34,194,880
------------
68,263,480
------------
U.S. TREASURY NOTES -- 54.1%
46,000,000 6.00%, 9/30/98................. 46,050,140
35,000,000 6.38%, 5/15/99................. 35,175,000
76,250,000 7.75%, 1/31/00................. 79,026,262
30,000,000 6.88%, 3/31/00................. 30,487,500
24,000,000 8.75%, 8/15/00................. 25,668,720
33,500,000 6.25%, 8/31/00................. 33,478,895
70,300,000 6.38%, 3/31/01................. 70,399,123
56,000,000 6.50%, 5/31/01................. 56,306,320
26,000,000 6.25%, 2/15/03................. 25,796,940
12,900,000 7.50%, 2/15/05................. 13,649,748
------------
416,038,648
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS.................... 484,302,128
(cost $487,746,118) ------------
</TABLE>
Continued
61
<PAGE> 64
The Kent INTERMEDIATE BOND FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
YANKEE CERTIFICATES OF DEPOSIT -- $1.3%
10,000,000 Potash Corp., 7.13%, 6/15/07... $ 9,942,400
------------
TOTAL YANKEE CERTIFICATES OF
DEPOSIT........................ 9,942,400
(cost $10,026,500) ------------
INVESTMENT COMPANIES -- 5.2%
13,096,808 Dreyfus Cash Management Money
Market Fund.................... 13,096,808
27,170,569 Federated Prime Value
Obligations Money Market Fund.. 27,170,569
------------
TOTAL INVESTMENT COMPANIES..... 40,267,377
(cost $40,267,377) ------------
TOTAL INVESTMENTS -- 98.4%................... 757,555,463
(cost $760,059,782)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.6%........................ 12,156,741
TOTAL NET ASSETS -- 100.0%................... $769,712,204
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $769,712,204.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................ $ 4,116,351
Unrealized depreciation................ (6,620,670)
-----------
Net unrealized depreciation............ $(2,504,319)
===========
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects final maturity date.
Continued
62
<PAGE> 65
The Kent INCOME FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
CORPORATE NOTES & BONDS -- 30.9%
BANKING -- 14.0%
$ 2,700,000 Bank of Montreal-Chicago,
7.80%, 4/1/07.................. $ 2,809,944
2,000,000 Bank of New York, 8.50%,
12/15/04....................... 2,165,600
2,000,000 BankAmerica Corp., 7.20%,
4/15/06........................ 2,011,480
2,000,000 Chase Manhattan Corp., 7.13%,
3/1/05......................... 2,013,360
2,000,000 Fleet Financial Group, 8.63%,
1/15/07........................ 2,177,800
2,000,000 Midland Bank PLC, 7.63%,
6/15/06........................ 2,059,700
3,000,000 National City Bank of
Cleveland, 7.25%, 7/15/10...... 3,010,800
5,000,000 NCNB Corp., 10.20%, 7/15/15.... 6,217,300
2,250,000 PNC Bank, N.A., 7.88%,
4/15/05........................ 2,344,545
2,000,000 Republic New York Corp., 7.00%,
3/22/11........................ 1,955,600
3,000,000 Royal Bank of Scotland, 6.38%,
2/1/11......................... 2,744,820
4,600,000 Societe Generale New York,
7.40%, 6/1/06.................. 4,648,346
2,000,000 Swiss Bank Corp. -- New York,
7.38%, 7/15/15................. 1,986,580
------------
36,145,875
------------
BROKERS -- 1.6%
2,000,000 Lehman Brothers Holdings, Inc.,
8.75%, 3/15/05................. 2,164,660
2,000,000 Salomon, Inc., 6.75%,
2/15/03........................ 1,957,700
------------
4,122,360
------------
FINANCE -- 6.3%
2,000,000 Discover Credit, 9.26%,
3/20/12........................ 2,347,800
2,000,000 Ford Motor Credit Corp., Medium
Term Note, 9.03%, 12/30/09,
Callable 12/30/04 @ 100........ 2,196,180
2,000,000 General Motors Acceptance
Corp., 9.13%, 7/15/01.......... 2,161,920
3,500,000 Great Western Financial Trust
II, 8.21%, 2/1/27, Callable
2/1/07 @ 104.1................. 3,490,270
2,000,000 HSBC America Capital II, 8.38%,
5/15/27, Callable 5/15/07 @
104.19(b)...................... 2,025,520
4,000,000 St. Paul Cos., Inc., 7.25%,
8/9/07......................... 4,052,280
------------
16,273,970
------------
GAS TRANSMISSION -- 1.0%
2,500,000 Enserch Corp., 7.13%,
6/15/05........................ 2,490,350
------------
INDUSTRIAL GOODS & SERVICES -- 2.1%
3,000,000 Engelhard Corp., 7.38%,
8/1/06......................... 3,060,690
2,000,000 IMC Global, Inc., 9.45%,
12/15/11....................... 2,290,000
------------
5,350,690
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
CORPORATE NOTES & BONDS (CONTINUED)
INSURANCE -- 0.8%
$ 2,000,000 Travelers Capital III, 7.63%,
12/1/36........................ $ 1,959,480
------------
OIL & GAS -- 2.3%
5,000,000 Philips Petroleum Co., 9.38%,
2/15/11........................ 5,879,950
------------
RETAIL -- 2.0%
4,965,173 Fred Meyer, Inc., Lease Trust,
8.50%, 7/15/17 (b)............. 5,045,062
------------
UTILITIES -- 0.8%
2,000,000 Pacific Gas & Electric, 6.25%,
3/1/04......................... 1,935,160
------------
TOTAL CORPORATE NOTES & BONDS.. 79,202,897
(cost $78,714,885) ------------
FOREIGN GOVERNMENT AGENCIES -- 0.4%
CANADA -- 0.4%
1,000,000 Hydro-Quebec, 9.41%, 3/23/00... 1,066,750
------------
TOTAL FOREIGN GOVERNMENT
AGENCIES....................... 1,066,750
(cost $1,059,483) ------------
MUNICIPAL BONDS -- 0.8%
CALIFORNIA -- 0.8%
2,000,000 San Bernardino County Financing
Authority, Pension Obligation
Revenue, 6.99%, 8/1/10 (Insured
by MBIA)....................... 1,962,500
------------
TOTAL MUNICIPAL BONDS.......... 1,962,500
(cost $2,030,920) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 3.0%
FEDERAL HOME LOAN MORTGAGE CORP. -- 1.0%
2,500,000 7.22%, 6/14/06................. 2,558,975
------------
FEDERAL NATIONAL MORTGAGE ASSOC. -- 2.0%
5,000,000 7.40%, 7/1/04.................. 5,211,700
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS.................... 7,770,675
(cost $7,520,354) ------------
U.S. GOVERNMENT OBLIGATIONS -- 59.2%
U.S. TREASURY BONDS -- 57.2%
9,500,000 10.75%, 8/15/05................ 11,981,875
12,200,000 9.13%, 5/15/09................. 13,854,564
25,000,000 10.38%, 11/15/12............... 31,734,250
41,800,000 9.25%, 2/15/16................. 52,295,562
19,550,000 7.25%, 5/15/16................. 20,386,936
2,985,000 7.50%, 11/15/16................ 3,189,741
7,500,000 8.75%, 8/15/20................. 9,113,700
3,750,000 7.13%, 2/15/23................. 3,862,500
------------
146,419,128
------------
</TABLE>
Continued
63
<PAGE> 66
The Kent INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (CONTINUED)
U.S. TREASURY NOTES -- 2.0%
$ 5,000,000 6.63%, 5/15/07................. $ 5,041,400
------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS.................... 151,460,528
(cost $150,971,920) ------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------ ------------------------------- ------------
<S> <C> <C>
INVESTMENT COMPANIES -- 3.8%
$ 9,805,904 Dreyfus Cash Management Money
Market Fund.................... $ 9,805,904
TOTAL INVESTMENT COMPANIES..... 9,805,904
(cost $9,805,904) ------------
TOTAL INVESTMENTS -- 98.1%................... 251,269,254
(Cost $250,103,466)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.9%........................ 4,801,455
------------
TOTAL NET ASSETS -- 100.0%................... $256,070,709
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $256,070,709.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................ $ 2,783,242
Unrealized depreciation................ (1,617,454)
-----------
Net unrealized appreciation............ $ 1,165,788
===========
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
MBIA Municipal Bond Insurance Association
See Notes to Financial Statements.
64
<PAGE> 67
The Kent LIMITED TERM TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS -- 98.0%
ALASKA -- 2.8%
$ 500,000 Alaska State Housing Finance
Corp., Series A, 4.35%, 6/1/98
(Insured by MBIA)............... $ 500,865
530,000 Alaska State Housing Finance
Corp., Series A, 4.60%, 12/1/00
(Insured by MBIA)............... 533,975
-------------
1,034,840
-------------
ARIZONA -- 3.1%
1,000,000 Arizona State University
Revenue, Prerefunded 7/1/01 @
102, 7.10%, 7/1/16.............. 1,116,250
-------------
CALIFORNIA -- 3.4%
1,000,000 University of California
Revenue, Multiple Purpose
Projects, Series B, 9.00%,
9/1/03 (Insured by MBIA)........ 1,232,500
-------------
CONNECTICUT -- 2.9%
1,000,000 Connecticut State, Series C, GO,
5.38%, 8/15/02.................. 1,040,000
-------------
DISTRICT OF COLUMBIA -- 2.8%
1,000,000 District of Columbia, GO, 5.10%,
12/1/99 (Insured by MBIA)....... 1,015,000
-------------
ILLINOIS -- 9.2%
1,000,000 Chicago Metropolitan Water
Reclamation District, Working
Cash Fund, GO, 5.90%, 12/1/04... 1,067,500
500,000 Chicago Metropolitan, Water
Reclamation District, Capital
Improvement, GO, 6.20%,
1/1/98.......................... 505,890
1,000,000 Illinois Educational Facilities
Authority Revenue, Loyola
University, Series A, 6.30%,
7/1/98 (Insured by MBIA)........ 1,020,040
745,000 University of Illinois, Health
Services Facilities, Series A,
4.90%, 10/1/01 (Insured by
AMBAC).......................... 751,519
-------------
3,344,949
-------------
KENTUCKY -- 2.8%
1,000,000 Kentucky State Property &
Buildings, Commission, Project
No. 53, 5.80%, 10/1/98.......... 1,017,500
-------------
LOUISIANA -- 2.8%
1,000,000 Louisiana State Gas & Fuels Tax
Revenue, Series A, 7.00%,
11/15/98 (Insured by FGIC)...... 1,036,250
-------------
MARYLAND -- 2.8%
1,000,000 Washington Suburban Sanitation
District, Water Revenue, Series
A, 6.13%, 6/1/98................ 1,021,030
-------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 19.3%
$ 1,235,000 Detroit, GO, Prerefunded 4/1/01
@ 102, 8.00%, 4/1/11............ $ 1,407,900
1,000,000 Detroit, Self-Insurance, Series
A, GO, 5.20%, 5/1/98............ 1,005,150
500,000 Michigan State Hospital Finance
Authority, Genesys Health
Systems, Series A, 6.40%,
10/1/97......................... 502,010
1,600,000 Michigan State Hospital Finance
Authority, Sisters of Mercy
Health Corp., Series P, 4.60%,
8/15/02, (Insured by MBIA)...... 1,600,000
1,000,000 Michigan State Housing
Development Authority, Rental
Housing Revenue, 5.15%, 10/1/00
(Insured by MBIA)............... 1,013,750
1,500,000 University of Michigan, Hospital
Revenue, Series A, 4.05%*,
12/1/19......................... 1,500,000
-------------
7,028,810
-------------
NEVADA -- 3.1%
1,090,000 Las Vegas, GO, 6.75%, 8/1/98
(Insured by MBIA)............... 1,123,125
-------------
NEW JERSEY -- 3.1%
1,000,000 New Jersey Economic Development
Authority, Series A, Market
Transition Facility Revenue,
7.00%, 7/1/03 (Insured by
MBIA)........................... 1,118,750
-------------
NEW YORK -- 2.8%
1,000,000 New York State Dormitory
Authority, State University
Educational Facilities, 4.70%,
5/15/99......................... 1,005,000
-------------
OHIO -- 2.9%
565,000 Cleveland-Cuyahoga County Port
Authority, Rock & Roll Hall of
Fame, Refunding, Subordinate
Bonds, 4.30%, 12/1/98........... 565,706
500,000 Cleveland-Cuyahoga County Port
Authority, Rock & Roll Hall of
Fame, Refunding, Subordinate
Bonds, 4.90%, 12/1/00........... 501,250
-------------
1,066,956
-------------
OKLAHOMA -- 3.2%
1,115,000 Tulsa Industrial Authority
Revenue, University of Tulsa,
Series A, 5.50%, 10/1/00
(Insured by MBIA)............... 1,152,631
-------------
PENNSYLVANIA -- 2.8%
1,000,000 Pennsylvania State, First
Series, GO, 5.00%, 5/1/99....... 1,013,750
-------------
</TABLE>
Continued
65
<PAGE> 68
The Kent LIMITED TERM TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30,1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
PUERTO RICO -- 2.8%
$ 1,000,000 Puerto Rico Commonwealth, GO,
5.00%, 7/1/98................... $ 1,008,000
-------------
TEXAS -- 12.9%
1,000,000 Harris County Flood Control
District, Series C, GO,
Prerefunded 11/1/99 @ 100,
6.50%, 11/1/10 (Insured by
MBIA)........................... 1,048,750
1,000,000 Houston Independent School
District, GO, Public Property
Finance Contractual Obligation,
6.25%, 7/15/99.................. 1,038,750
1,500,000 Houston Water & Sewer System
Revenue, Junior Lien, Series C,
4.75%, 12/1/97 (Insured by
MBIA)........................... 1,506,645
1,000,000 Pasadena Independent School
District, GO, Prerefunded
8/15/01 @ 100, 6.75%, 8/15/05
(Insured by FGIC)............... 1,085,000
-------------
4,679,145
-------------
UTAH -- 2.7%
1,000,000 Utah Water Finance Agency
Revenue, Pooled Loan Financing
Program, Series A, 4.05%,
10/1/98......................... 1,000,000
-------------
VIRGINIA -- 4.2%
1,500,000 Norfolk, GO, 5.13%, 6/1/01...... 1,535,625
-------------
WISCONSIN -- 2.8%
1,000,000 Green Bay, Series A, GO, 5.10%,
4/1/00.......................... 1,020,000
-------------
WYOMING -- 2.8%
1,000,000 Campbell County School District,
No. 001 Gillette, GO, 5.15%,
6/1/02.......................... 1,025,000
-------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TOTAL MUNICIPAL BONDS........... $ 35,635,111
(cost $35,162,476) -------------
INVESTMENT COMPANIES -- 0.7%
$ 267,955 Dreyfus Tax-Exempt Cash
Management Fund................. 267,955
-------------
TOTAL INVESTMENT COMPANIES...... 267,955
(cost $267,955) -------------
TOTAL INVESTMENTS -- 98.7%................... 35,903,066
(cost $35,430,431) (a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.3%........................ 490,198
-------------
TOTAL NET ASSETS -- 100.0%................... $ 36,393,264
=============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $36,393,264.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $ 473,298
Unrealized depreciation............... (663)
------------
Net unrealized appreciation........... $ 472,635
=============
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects final maturity date.
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Corp.
GO General Obligation
MBIA Municipal Bond Insurance Association
</TABLE>
See Notes to Financial Statements.
66
<PAGE> 69
The Kent INTERMEDIATE TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS -- 96.4%
ALASKA -- 3.2%
$1,520,000 Alaska Municipal Bond Bank
Authority, Series A, GO, 4.75%,
10/1/99......................... $ 1,523,800
1,000,000 Anchorage Electric Utility,
Revenue Bond, Senior Lien,
5.50%, 12/1/03 (Insured by
MBIA), Callable 6/1/03 @ 102.... 1,040,000
1,000,000 Anchorage, GO, 6.30%, 7/1/99
(Insured by MBIA)............... 1,038,750
5,000,000 North Slope Boro, Series B, GO,
7.50%, 6/30/01 (Insured by
FSA)............................ 5,512,500
------------
9,115,050
------------
ARIZONA -- 2.4%
1,500,000 Pima County Unified School
District, No. 1 Tucson, Series
B, GO, ETM, 6.80%, 7/1/00....... 1,601,250
5,000,000 Salt River Project Agricultural
Improvement & Power District
Electric System, Series A,
5.63%, 1/1/06................... 5,243,750
------------
6,845,000
------------
CALIFORNIA -- 6.0%
3,400,000 California State, GO, 6.60%,
2/1/10.......................... 3,863,250
3,000,000 Orange County, Series A, 6.00%,
6/1/10 (Insured by MBIA)........ 3,240,000
2,000,000 Riverside County Transportation
Commission, Sales Tax Revenue,
Series A, 5.60%, 6/1/05 (Insured
by AMBAC)....................... 2,117,500
2,000,000 Turlock Irrigation District
Revenue, Series A, 6.00%, 1/1/06
(Insured by MBIA)............... 2,172,500
4,850,000 University of California
Revenue, Multiple Purpose
Projects, Series B, 9.00%,
9/1/03 (Insured by MBIA)........ 5,977,625
------------
17,370,875
------------
COLORADO -- 1.8%
4,000,000 Arapahoe County, School District
No. 5, Cherry Creek, Series A,
GO, 5.25%, 12/15/02............. 4,135,000
1,000,000 Colorado Springs Utility
Revenue, Series A, 6.50%,
11/15/03, Callable 11/15/01 @
102............................. 1,085,000
------------
5,220,000
------------
CONNECTICUT -- 1.5%
4,000,000 Connecticut State, Series A,
6.00%, 5/15/02.................. 4,260,000
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
FLORIDA -- 2.8%
$1,000,000 Broward County School District,
GO, 5.20%, 2/15/03.............. $ 1,020,000
1,140,000 Gainesville Utilities System
Revenue, Series A, Prerefunded
10/1/02 @ 102, 6.50%, 10/1/22... 1,256,850
1,350,000 Jacksonville Excise Tax Revenue
Bonds, 4.75%, 10/1/01 (Insured
by FGIC)........................ 1,360,125
2,000,000 Lakeland Electric & Water
Revenue, 5.90%, 10/1/07......... 2,157,500
1,000,000 Tampa Guaranteed Entitlement
Revenue, 6.60%, 10/1/00 (Insured
by AMBAC)....................... 1,067,500
1,000,000 Tampa Utility Tax & Special
Revenue, 6.30%, 10/1/00 (Insured
by AMBAC)....................... 1,057,500
------------
7,919,475
------------
GEORGIA -- 4.4%
2,670,000 Atlanta Airport Facilities
Revenue, Series B (AMT), 5.50%,
1/1/03 (Insured by AMBAC)....... 2,756,775
1,000,000 Georgia State Tollway Authority
Revenue, Georgia 400 Project,
6.25%, 7/1/00................... 1,057,500
4,000,000 Georgia State, Series B, GO,
5.95%, 3/1/08................... 4,350,000
4,000,000 Georgia State, Series F, GO,
6.50%, 12/1/01.................. 4,335,000
------------
12,499,275
------------
HAWAII -- 1.2%
1,025,000 Honolulu City & County, Series
A, GO, 5.60%, 1/1/05............ 1,073,688
1,000,000 Honolulu City & County, Series
D, GO, ETM, 6.50%, 12/1/00...... 1,068,750
1,150,000 Maui County, Series A, GO,
Prerefunded 12/1/00 @ 101,
6.80%, 12/1/03 (Insured by
AMBAC).......................... 1,249,187
------------
3,391,625
------------
ILLINOIS -- 5.9%
2,000,000 Chicago Metropolitan, Water
Reclamation District, Capital
Improvement, GO, 6.80%,
1/1/03.......................... 2,135,000
3,000,000 Chicago Metropolitan, Water
Reclamation District, Capital
Improvement, GO, 5.50%,
12/1/10......................... 3,071,250
4,270,000 DuPage & Will Counties,
Community School District No.
204, GO, 4.95%, 12/30/01
(Insured by FGIC)............... 4,339,387
</TABLE>
Continued
67
<PAGE> 70
The Kent INTERMEDIATE TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
$4,000,000 Illinois Development Finance
Authority, Pollution Control
Revenue, Commonwealth Edison,
5.30%, 1/15/04 (Insured by
MBIA)........................... $ 4,090,000
3,135,000 Northwest Suburban Municipal
Joint Action, Water Agency,
Water Supply System, Series A,
5.25%, 5/1/04 (Insured by
MBIA)........................... 3,170,269
------------
16,805,906
------------
INDIANA -- 3.2%
3,000,000 Indiana Municipal Power Supply
Agency, Series B, 6.00%, 1/1/13
(Insured by MBIA)............... 3,198,750
2,000,000 Indiana Municipal Power Supply
System Revenue, Series B, 5.88%,
1/1/10 (Insured by MBIA)........ 2,115,000
1,000,000 Indiana Transportation Finance
Authority, Highway Revenue,
Series A, 5.75%, 6/1/12 (Insured
by AMBAC)....................... 1,040,000
1,000,000 Purdue University Dormitory
System Revenue, Series A, 6.40%,
7/1/99 (Insured by AMBAC)....... 1,038,750
1,000,000 Purdue University Student Fee
Revenue, Series D, 6.50%,
7/1/03, Callable 1/1/00 @ 103... 1,072,500
500,000 St. Joseph County Educational
Facilities Revenue, University
of Notre Dame, 6.50%, 3/1/26.... 566,250
------------
9,031,250
------------
KENTUCKY -- 0.4%
1,000,000 Kentucky State Property &
Buildings, Prerefunded 8/1/05 @
100, 6.00%, 8/1/10.............. 1,056,250
------------
LOUISIANA -- 2.6%
4,000,000 Louisiana State, Series A, GO,
5.30%, 8/1/04 (Insured by
MBIA)........................... 4,120,000
3,000,000 Louisiana State, Series A, GO,
6.00%, 4/15/07 (Insured by
FGIC)........................... 3,243,750
------------
7,363,750
------------
MASSACHUSETTS -- 4.5%
5,000,000 Massachusetts Bay Transportation
Authority, Series A, 5.00%,
3/1/02.......................... 5,093,750
4,000,000 Massachusetts State Turnpike
Authority, Series A, Bond
Anticipation Note, 5.00%,
6/1/99.......................... 4,055,000
3,750,000 Massachusetts State, Special
Obligation Revenue, Series A,
5.25%, 6/1/08 (Insured by
AMBAC).......................... 3,825,000
------------
12,973,750
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 19.1%
$4,000,000 Battle Creek Downtown
Development Authority, Tax
Increment Revenue, 7.30%,
5/1/10, Callable 5/1/04 @ 102... $ 4,469,999
2,100,000 Caledonia Community Schools, GO,
Prerefunded 5/1/02 @ 102, 6.70%,
5/1/22 (Insured by AMBAC)....... 2,331,000
3,000,000 Detroit Sewage Disposal Revenue,
Series B, 6.00%, 7/1/09 (Insured
by MBIA)........................ 3,236,250
1,750,000 Detroit Water Supply System,
5.70%, 7/1/00 (Insured by
FGIC)........................... 1,813,438
6,000,000 Detroit Water Supply System,
Permanent Linked Bonds, 5.25%,
7/1/13.......................... 5,857,499
1,000,000 Detroit Water Supply System,
Second Lien, Series A, 5.20%,
7/1/08 (Insured by MBIA)........ 1,016,250
3,000,000 Detroit, GO, Distributable State
Aid, 5.70%, 5/1/01 (Insured by
AMBAC).......................... 3,116,250
2,840,000 Grand Ledge Public Schools
District, GO, 5.35%, 5/1/10
(Insured by MBIA)............... 2,889,700
1,700,000 Greater Detroit Resource
Recovery Authority, Series A,
5.50%, 12/13/04 (Insured by
AMBAC).......................... 1,772,250
2,000,000 Kalamazoo Hospital Finance
Authority, Refunding &
Improvement, Bronson Methodist
Hospital, 5.35%, 5/15/06
(Insured by MBIA)............... 2,055,000
2,000,000 Michigan State Comprehensive
Transportation, Series B, 5.50%,
5/15/02......................... 2,082,500
1,475,000 Michigan State Environmental
Protection, Prerefunded 11/15/99
@ 102, 7.10%, 11/15/09.......... 1,594,844
1,450,000 Michigan State Hospital Finance
Authority, St. John Hospital &
Medical Center, 5.00%, 5/15/06
(Insured by AMBAC).............. 1,457,250
1,000,000 Michigan State South Central
Power Agency, Power Supply
System.......................... 1,061,250
2,300,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Ford
Motor Co. Project, Series A,
7.10%, 2/1/06................... 2,642,125
2,500,000 Michigan State Trunk Line,
Series A, 5.50%, 10/1/02........ 2,612,500
</TABLE>
Continued
68
<PAGE> 71
The Kent INTERMEDIATE TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$3,500,000 Michigan State Underground
Storage Tank Financial Assurance
Authority, Series I, 6.00%,
5/1/05 (Insured by AMBAC)....... $ 3,771,250
1,340,000 Michigan State University,
Series A, 4.80%, 2/15/08........ 1,314,875
2,000,000 Northville Public Schools,
Series A, GO, 7.00%, 5/1/08..... 2,155,000
1,575,000 South Redford School District,
5.25%, 5/1/09 (Insured by
FGIC)........................... 1,582,875
2,800,000 University of Michigan, Hospital
Revenue, Series A, 4.05%*,
12/1/19......................... 2,800,000
2,400,000 University of Michigan, Hospital
Revenue, Series A, 4.05%*,
12/1/27......................... 2,400,000
1,000,000 Western Michigan University
Revenue, GO, 5.40%, 11/15/01
(Insured by FGIC)............... 1,038,750
------------
55,070,855
------------
MINNESOTA -- 0.4%
1,000,000 Minneapolis Community
Development Agency, Tax
Increment Revenue, 7.00%, 9/1/00
(Insured by MBIA)............... 1,078,750
------------
NEVADA -- 1.0%
2,500,000 Clark County School District,
Group 2, GO, Prerefunded 5/1/00
@ 102, 7.20%, 5/1/01 (Insured by
FGIC)........................... 2,731,250
------------
NEW JERSEY -- 4.7%
6,000,000 New Jersey Economic Development
Authority, Market Transition
Facility Revenue, Senior Lien,
7.00%, 7/1/04 (Insured by
MBIA)........................... 6,795,000
2,000,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System, Series A,
6.00%, 12/15/06 (Insured by
MBIA)........................... 2,167,500
1,375,000 New Jersey State, Series D, GO,
5.25%, 2/15/01.................. 1,411,094
3,000,000 Ocean County Utilities
Authority, Wastewater Revenue,
Refunding, GO, 6.00%, 1/1/07.... 3,228,750
------------
13,602,344
------------
NEW YORK -- 2.7%
1,130,000 Metropolitan Transportation
Authority, Series M, 5.50%,
7/1/08 (Insured by FGIC)........ 1,182,263
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$3,660,000 New York State Urban Development
Corp., Refunding,
SyracuseUniversity Center,
5.50%, 1/1/15................... $ 3,627,975
3,000,000 Triborough Bridge & Tunnel
Authority, General Purpose,
Series Y, 5.50%, 1/1/17......... 3,030,000
------------
7,840,238
------------
NORTH CAROLINA -- 0.7%
2,000,000 North Carolina Municipal Power,
Agency No. 1, Catawba Electric
Revenue, 5.90%, 1/1/03.......... 2,075,000
------------
OHIO -- 0.8%
2,125,000 Columbus, Sewer Improvement, GO,
6.30%, 9/15/99.................. 2,220,625
------------
OKLAHOMA -- 0.7%
2,000,000 Tulsa Industrial Authority,
University of Tulsa, Series A,
6.00%, 10/1/16 (Insured by
MBIA)........................... 2,132,500
------------
PENNSYLVANIA -- 3.4%
4,355,000 Chartiers Valley Joint School
District Authority, School
Revenue, ETM, 6.15%, 3/1/07..... 4,719,731
1,600,000 Pennsylvania State Higher
Educational Facilities
Authority, College & University
Revenue, Drexel University,
5.50%, 5/1/06 (Insured by
MBIA)........................... 1,654,000
1,805,000 Pennsylvania State Higher
Educational Facilities
Authority, College & University
Revenue, Drexel University,
5.50%, 5/1/07 (Insured by
MBIA)........................... 1,870,431
1,475,000 Pennsylvania State, Series A,
GO, Prerefunded 5/1/00 @ 101.5,
7.00%, 5/1/05................... 1,596,688
------------
9,840,850
------------
PUERTO RICO -- 2.6%
2,000,000 Puerto Rico Commonwealth Highway
& Transportation Authority,
Highway Revenue, Series X,
4.90%, 7/1/01................... 2,020,000
3,055,000 Puerto Rico Commonwealth,
Aqueduct & Sewer Authority,
6.00%, 7/1/06................... 3,276,488
2,000,000 Puerto Rico Electric Power
Authority Revenue, Series W,
5.00%, 7/1/98................... 2,016,000
------------
7,312,488
------------
</TABLE>
Continued
69
<PAGE> 72
The Kent INTERMEDIATE TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
RHODE ISLAND -- 2.6%
$1,000,000 Providence, GO, 6.70%, 1/15/02,
Callable 1/15/00 @ 102 (Insured
by MBIA)........................ $ 1,073,750
3,025,000 Rhode Island State, Series A,
GO, 5.50%, 8/1/04 (Insured by
MBIA)........................... 3,164,906
2,000,000 State Depositors Economic
Protection Corp., Series A,
Special Obligation, 6.15%,
8/1/99 (Insured by MBIA)........ 2,070,000
1,000,000 State Depositors Economic
Protection Corp., Series B,
Special Obligation, 5.20%,
8/1/03 (Insured by MBIA)........ 1,026,250
------------
7,334,906
------------
TENNESSEE -- 0.5%
1,230,000 Tennessee State, Series B, GO,
6.20%, 6/1/01................... 1,311,488
------------
TEXAS -- 9.5%
1,000,000 Austin Independent School
District, GO, 6.20%, 8/1/99..... 1,041,250
2,245,000 Dallas Independent School
District, GO, 5.40%, 8/15/03.... 2,337,606
1,055,000 Hays Consolidated Independent
School District, 6.00%,
9/1/02.......................... 1,130,169
1,190,000 Hays Consolidated Independent
School District, 6.00%,
9/1/04.......................... 1,283,713
1,500,000 Houston Water & Sewer System,
Junior Lien, Series C, 5.75%,
12/1/03 (Insured by MBIA)....... 1,584,375
1,000,000 Houston Water & Sewer System,
Prior Lien, Series A, 7.00%,
12/1/01 (Insured by AMBAC)...... 1,100,000
3,000,000 Lower Colorado River Authority,
4.90%, 1/1/07................... 2,981,250
1,050,000 Round Rock Independent School
District, GO, 5.25%, 2/15/05.... 1,081,500
2,800,000 Texas Municipal Power Agency,
5.60%, 9/1/01 (Insured by
MBIA)........................... 2,919,000
5,595,000 Texas State Public Finance
Authority, Series A, 6.50%,
10/1/04......................... 6,224,437
4,450,000 Texas State, Series A, GO,
5.70%, 10/1/03.................. 4,711,437
1,015,000 University of Texas, Series A,
6.60%, 8/15/02.................. 1,113,963
------------
27,508,700
------------
VIRGINIA -- 1.1%
3,000,000 Norfolk, GO, 5.20%, 6/1/08...... 3,037,500
------------
WASHINGTON -- 5.0%
2,695,000 Tacoma Electric System,
Refunding, 6.00%, 1/1/06
(Insured by AMBAC).............. 2,890,388
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- -------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
WASHINGTON (CONTINUED)
$2,000,000 Washington State Public Power
Supply System, Nuclear Project
No. 1 Bond Revenue, Series C,
7.25%, 7/1/00 (Insured by
FGIC)........................... $ 2,147,500
8,000,000 Washington State, Series A, GO,
5.50%, 9/1/05................... 8,310,000
850,000 Washington State, Series III-H,
Motor Vehicle Fuel Tax, G,
5.75%, 9/1/12................... 898,875
------------
14,246,763
------------
WEST VIRGINIA -- 0.4%
1,095,000 West Virginia School Building
Authority Revenue, Capital
Improvement, Series A, 6.70%,
7/1/00 (Insured by MBIA)........ 1,162,069
------------
WISCONSIN -- 1.3%
1,025,000 Milwaukee Metropolitan Sewer
District, Series A, GO, 6.60%,
10/1/99......................... 1,077,531
1,500,000 Milwaukee Metropolitan Sewer
District, Series A, GO, 6.70%,
10/1/00......................... 1,603,125
1,000,000 Wisconsin State Public Power
Supply System, Series A, 7.00%,
7/1/01 (Insured by AMBAC)....... 1,087,500
------------
3,768,156
------------
TOTAL MUNICIPAL BONDS........... 276,126,688
(cost $266,184,277) ------------
INVESTMENT COMPANIES -- 2.1%
5,951,566 Dreyfus Tax-Exempt Cash
Management Fund................. 5,951,566
------------
TOTAL INVESTMENT COMPANIES...... 5,951,566
(cost $5,951,566) ------------
TOTAL INVESTMENTS -- 98.5%................... 282,078,254
(cost $272,135,843)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.5%........................ 4,289,364
------------
TOTAL NET ASSETS -- 100.0%................... $ 286,367,618
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $286,367,618.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............... $ 10,203,880
Unrealized depreciation............... (261,469)
------------
Net unrealized appreciation........... $ 9,942,411
=============
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects final maturity date.
Continued
70
<PAGE> 73
The Kent INTERMEDIATE TAX-FREE FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corp.
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Corp.
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Insurance Association
</TABLE>
See Notes to Financial Statements.
71
<PAGE> 74
The Kent TAX-FREE INCOME FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS -- 97.5%
ARIZONA -- 1.4%
$ 1,500,000 Arizona State University
Revenue, Prerefunded 7/1/02 @
101, 7.00%, 7/1/15 (Insured by
AMBAC).......................... $ 1,680,000
------------
CALIFORNIA -- 9.9%
1,000,000 Anaheim Public Financing
Authority, Lease Revenue, Public
Improvements Project, Series A,
6.00%, 9/1/24 (Insured by
FSA)............................ 1,061,250
1,400,000 California State, GO, 7.00%,
6/1/05.......................... 1,608,250
2,000,000 California State, GO, 6.25%,
9/1/12.......................... 2,212,500
3,000,000 Northern California Power Agency
Revenue, Geothermal Project,
Series A, 5.50%, 7/1/05 (Insured
by AMBAC)....................... 3,150,000
2,000,000 Orange County, Series A, 6.00%,
6/1/10 (Insured by MBIA)........ 2,160,000
1,380,000 Turlock Irrigation District
Revenue, Series A, 6.00%, 1/1/07
(Insured by MBIA)............... 1,500,750
------------
11,692,750
------------
COLORADO -- 1.8%
2,000,000 Denver City & County Airport
Revenue, Series C, (AMT), 6.75%,
11/15/22, Callable 11/15/02 @
102............................. 2,112,500
------------
FLORIDA -- 1.4%
1,400,000 Port Everglades Authority, Port
Improvement, ETM, 7.125%,
11/1/16......................... 1,655,500
------------
GEORGIA -- 0.9%
1,000,000 Georgia State, Series B, GO,
5.95%, 3/1/08................... 1,087,500
------------
HAWAII -- 2.7%
2,000,000 Hawaii State, Series CB, GO,
5.75%, 1/1/07................... 2,125,000
1,000,000 Honolulu City & County, Series
A, GO, 5.75%, 4/1/10............ 1,048,750
------------
3,173,750
------------
ILLINOIS -- 7.9%
2,000,000 Chicago Metropolitan, Water
Reclamation District, Capital
Improvement, GO, 5.50%,
12/1/10......................... 2,047,500
1,000,000 Chicago Public Building
Commission, Series A, ETM,
7.00%, 1/1/20 (Insured by
MBIA)........................... 1,187,500
2,000,000 Chicago School Finance
Authority, Series A, GO, 4.90%,
6/1/05 (Insured by MBIA)........ 1,980,000
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
ILLINOIS (CONTINUED)
$ 2,000,000 DuPage & Will Counties,
Community School District No.
204, GO, 4.95%, 12/30/01
(Insured by FGIC)............... $ 2,032,500
1,000,000 Illinois State Sales Tax, Series
S, 5.00%, 6/15/08............... 985,000
1,000,000 Will County Forest Preserve
District, GO, 5.90%, 12/1/03,
Callable 12/1/02 @ 100 (Insured
by AMBAC)....................... 1,060,000
------------
9,292,500
------------
INDIANA -- 5.5%
2,000,000 Indiana Municipal Power Supply
Agency, Series B, 6.00%, 1/1/13
(Insured by MBIA)............... 2,132,500
2,250,000 Indiana State Office Building
Commission, Capital Complex,
Government Center Parking
Facilities, Series A, 4.80%,
7/1/03 (Insured by AMBAC)....... 2,252,813
1,000,000 Indiana Transportation Finance
Authority, Highway Revenue,
Series A, 5.75%, 6/1/12 (Insured
by AMBAC)....................... 1,040,000
1,000,000 Marion County Hospital Authority
Revenue, Community Hospital,
Indianapolis Project, ETM,
6.00%, 5/1/06................... 1,067,500
------------
6,492,813
------------
IOWA -- 2.0%
2,055,000 Iowa Finance Authority Private
College Revenue, Drake
University Project, 6.50%,
12/1/11 (Insured by MBIA)....... 2,309,306
------------
KENTUCKY -- 1.1%
1,315,000 Louisville & Jefferson County,
Metropolitan Sewer District,
Sewer & Drain System Revenue,
Series A, 5.25%, 5/15/27,
Callable 5/15/07 @ 101
(Insured by MBIA)............... 1,257,469
------------
LOUISIANA -- 2.7%
3,000,000 Louisiana State Gas & Fuels Tax
Revenue, Series A, 7.25%,
11/15/00, Callable 11/15/99 @
102............................. 3,240,000
------------
MARYLAND -- 1.7%
2,000,000 Prince Georges County,
Consolidated Public Improvement,
GO, 5.00%, 1/1/02 (Insured by
MBIA)........................... 2,045,000
------------
</TABLE>
Continued
72
<PAGE> 75
The Kent TAX-FREE INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MASSACHUSETTS -- 2.5%
$ 1,000,000 Massachusetts State Industrial
Finance Agency, Resource
Recovery Revenue, Refusetech,
Inc. Project, Series A, 5.25%,
7/1/99 (Insured by FSA)......... $ 1,018,750
1,000,000 Massachusetts State Water,
Resource Authority, Series B,
5.00%, 12/1/25 (Insured by
MBIA)........................... 920,000
1,000,000 Massachusetts State, Series B,
GO, 5.40%, 11/1/06.............. 1,041,250
------------
2,980,000
------------
MICHIGAN -- 22.8%
2,000,000 Battle Creek Downtown
Development Authority, Tax
Increment Revenue, 7.30%,
5/1/10, Callable 5/1/04 @ 102... 2,235,000
1,300,000 Berkley School District, GO,
7.00%, 1/1/07 (Insured by
FGIC)........................... 1,503,125
2,000,000 Detroit Sewage Disposal Revenue,
Series B, 6.00%, 7/1/09 (Insured
by MBIA)........................ 2,157,500
1,000,000 Detroit Water Supply System,
Series B, 5.10%, 7/1/07 (Insured
by MBIA)........................ 1,011,250
930,000 Kent County Airport Facility,
Kent County International
Airport, (AMT), 5.50%, 1/1/07,
Callable 1/1/05 @ 102........... 969,525
2,365,000 Michigan State Hospital Finance
Authority, Detroit Medical
Center, Series B, 5.00%, 8/15/06
(Insured by AMBAC).............. 2,373,869
2,000,000 Michigan State Hospital Finance
Authority, Henry Ford Health,
Series A, 5.25%, 11/15/20
(Insured by AMBAC).............. 1,902,500
2,000,000 Michigan State Hospital Finance
Authority, Sisters of Mercy,
Series P, 5.25%, 8/15/21
(Insured by MBIA)............... 1,867,500
1,300,000 Michigan State Housing
Development Authority, Rental
Housing Revenue, Series A,
5.15%, 4/1/02 (Insured by
AMBAC).......................... 1,317,875
1,000,000 Michigan State South Central
Power Agency, Power Supply
System Revenue, 5.80%, 11/1/05
(Insured by MBIA)............... 1,061,250
2,000,000 Michigan State Trunk Line,
5.50%, 11/1/16, (Insured by
FGIC)........................... 1,975,000
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 1,000,000 Michigan State Underground
Storage Tank Financial Assurance
Authority, Series I, 6.00%,
5/1/05 (Insured by AMBAC)....... $ 1,077,500
2,000,000 Michigan State University
Revenue, General, Series A,
5.50%, 8/15/22.................. 1,957,500
5,550,000 Midland County, Economic
Development Corp., Dow Chemical,
Series B, 4.00%*, 12/1/15....... 5,549,999
------------
26,959,393
------------
MISSOURI -- 0.4%
500,000 Missouri State Health &
Education Facilities, Lake of
Ozarks General Hospital, 6.50%,
2/15/21, Callable 2/15/06 @
102............................. 512,500
------------
NEBRASKA -- 0.9%
1,075,000 Omaha Public Power District,
5.10%, 2/1/08................... 1,087,094
------------
NEVADA -- 3.6%
1,805,000 Clark County School District,
GO, 5.75%, 6/15/10, Callable
6/15/06 @ 101 (Insured by
FGIC)........................... 1,868,175
2,000,000 Nevada State, Nevada Municipal
Bond Bank, Series A, GO, 8.00%,
11/1/05......................... 2,430,000
------------
4,298,175
------------
NEW JERSEY -- 2.8%
1,500,000 New Jersey Economic Development
Authority, Market Transition
Facility Revenue, Senior Lien,
7.00%, 7/1/04 (Insured by
MBIA)........................... 1,698,750
1,500,000 New Jersey State Transportation
Trust Fund Authority,
Transportation System, Series A,
6.00%, 12/15/06 (Insured by
MBIA)........................... 1,625,625
------------
3,324,375
------------
NEW YORK -- 2.4%
1,350,000 New York City Municipal Water &
Sewer Revenue, 5.50%, 6/15/24,
Callable 6/15/06 @ 101.......... 1,304,438
1,500,000 New York City Transportation
Authority, Transportation
Facilities Revenue, Livingston
Plaza Project, 5.40%, 1/1/18
(Insured by FSA)................ 1,492,500
------------
2,796,938
------------
</TABLE>
Continued
73
<PAGE> 76
The Kent TAX-FREE INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OKLAHOMA -- 1.8%
$ 1,000,000 Grand River Dam Authority,
5.75%, 6/1/08 (Insured by
FSA)............................ $ 1,067,500
1,000,000 Tulsa Industrial Authority,
University of Tulsa, Series A,
6.00%, 10/1/16 (Insured by
MBIA)........................... 1,066,250
------------
2,133,750
------------
PENNSYLVANIA -- 1.7%
2,000,000 Pennsylvania State, First
Series, GO, 5.375%, 5/15/16
(Insured by FGIC)............... 1,982,500
------------
PUERTO RICO -- 0.9%
1,000,000 Puerto Rico Commonwealth Highway
& Transportation Authority,
Highway Revenue, Series X,
4.90%, 7/1/01................... 1,010,000
------------
RHODE ISLAND -- 0.8%
1,000,000 Convention Center Authority,
Series B, 5.00%, 5/15/09
(Insured by MBIA)............... 990,000
------------
SOUTH CAROLINA -- 1.0%
1,200,000 Myrtle Beach Water & Sewer
Revenue, 4.90%, 3/1/02 (Insured
by MBIA)........................ 1,213,500
------------
TENNESSEE -- 1.1%
1,225,000 Tennessee Housing Development
Agency, Mortgage Finance, Series
C, (AMT), 5.95%, 7/1/09,
Callable 7/1/05 @ 102 (Insured
by MBIA)........................ 1,263,281
------------
TEXAS -- 8.3%
2,000,000 Austin Independent School
District, GO, 5.00%, 8/1/01..... 2,037,500
1,000,000 Brownsville Utility System,
6.25%, 9/1/11 (Insured by
AMBAC).......................... 1,095,000
1,000,000 Harris County, Certificates of
Obligation, 6.00%, 12/15/11..... 1,085,000
2,000,000 Texas City Industrial
Development Corp., Marine
Terminal Revenue, Arco Pipeline
Co. Project, 7.375%, 10/1/20.... 2,490,000
1,000,000 Texas State Turnpike Authority,
President George Bush Turnpike,
5.25%, 1/1/23, Callable 1/1/06 @
102 (Insured by FGIC)........... 956,250
2,000,000 Texas State, Series A, GO,
5.70%, 10/1/03.................. 2,117,500
------------
9,781,250
------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
UTAH -- 2.5%
$ 2,175,000 Intermountain Power Agency, Utah
Power Supply, Series D, 5.00%,
7/1/23.......................... $ 1,965,656
1,000,000 St. George, Parks & Recreational
Facilities, GO, 5.375%, 8/1/21,
Callable 8/1/07 @ 101 (Insured
by FGIC)........................ 978,750
------------
2,944,406
------------
VIRGINIA -- 1.0%
1,230,000 Norfolk, State Aid, GO, 5.40%,
6/1/12, Callable 6/1/04 @ 101... 1,234,613
------------
WASHINGTON -- 4.0%
1,000,000 Douglas County Public Utility
District No. 001, Electric
Distribution System, 5.90%,
1/1/11, Callable 1/1/05 @ 102
(Insured by MBIA)............... 1,031,250
2,500,000 Port Seattle, Limited GO (AMT),
5.35%, 5/1/04................... 2,568,750
1,000,000 Washington State, Motor Vehicle
Fuel Tax, R-92D, GO, 6.25%,
9/1/07.......................... 1,106,250
------------
4,706,250
------------
TOTAL MUNICIPAL BONDS........... 115,257,113
(cost $111,788,418) ------------
INVESTMENT COMPANIES -- 2.8%
3,293,570 Dreyfus Tax-Exempt Cash
Management Fund................. 3,293,570
------------
TOTAL INVESTMENT COMPANIES...... 3,293,570
(cost $3,293,570) ------------
TOTAL INVESTMENTS -- 100.3%.................. 118,550,683
(cost $115,081,988)(a)
LIABILITIES IN EXCESS OF OTHER ASSETS
(0.3)%..................................... (369,581)
------------
TOTAL NET ASSETS -- 100.0%................... $118,181,102
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $118,181,102.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................. $3,554,340
Unrealized depreciation................. (85,945)
----------
Net unrealized appreciation............. $3,468,695
==========
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects final maturity date.
74
<PAGE> 77
The Kent TAX-FREE INCOME FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Corp.
FSA Financial Security Assurance
GO General Obligation
MBIA Municipal Bond Insurance Association
</TABLE>
See Notes to Financial Statements.
75
<PAGE> 78
The Kent MICHIGAN MUNICIPAL BOND FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS -- 101.0%
MICHIGAN -- 98.6%
$ 1,990,000 Allegan Sanitary Sewer System
(AMT), 5.45%, 11/1/02........... $ 2,004,925
1,220,000 Auburn Hills Local Development
Authority, Tax Increment
Revenue, Series A, 6.75%,
11/1/97 (LOC: Dai-Ichi Kangyo
Bank Ltd.)...................... 1,229,138
2,000,000 Battle Creek Downtown
Development Authority, Tax
Increment Revenue, 6.90%,
5/1/04.......................... 2,175,000
745,000 Bay City School District, GO,
5.50%, 5/1/98................... 755,303
1,000,000 Bay City, Electric Utility
Revenue, 5.15%, 1/1/07 (Insured
by AMBAC)....................... 1,007,500
1,000,000 Chippewa Valley School District,
GO, Prerefunded 5/1/01 @ 101.5,
6.375%, 5/1/05 (Insured by
FGIC)........................... 1,081,250
1,445,000 Chippewa Valley School District,
Series A, GO, 5.60%, 5/1/99..... 1,479,319
1,700,000 Clintondale Community School
District, GO, 4.65%, 5/1/03..... 1,689,375
2,000,000 Dearborn School District, GO,
Prerefunded 5/1/00 @ 102,
6.625%, 5/1/09 (Insured by
MBIA)........................... 2,157,500
1,000,000 Dearborn School District, GO,
Prerefunded 5/1/00 @ 102,
6.375%, 5/1/10 (Insured by
MBIA)........................... 1,072,500
1,075,000 Dearborn Sewage Disposal System,
7.00%, 4/1/99 (Insured by
MBIA)........................... 1,124,719
965,000 Dearborn Sewage Disposal System,
6.90%, 4/1/02 (Insured by
MBIA)........................... 1,057,881
2,000,000 Detroit Convention Facility,
Cobo Hall Expansion Project,
4.00%, 9/30/97.................. 1,999,160
2,800,000 Detroit Sewage Disposal, Series
A, 4.85%, 7/1/01 (Insured by
FGIC)........................... 2,834,999
2,000,000 Detroit Sewage Disposal, Series
A, 4.30%, 7/1/01 (Insured by
MBIA)........................... 1,985,000
720,000 Detroit Water Supply System,
4.30%, 7/1/00 (Insured by
FGIC)........................... 717,300
580,000 Detroit, Distributable State
Aid, GO, 5.60%, 5/1/00 (Insured
by AMBAC)....................... 597,400
1,000,000 Detroit, GO, 5.00%, 4/1/04...... 1,007,500
750,000 Detroit, GO, 6.00%, 4/1/06...... 801,563
2,000,000 East China Township School
District, GO, 6.00%, 5/1/02,
Callable 5/1/01 @ 102........... 2,092,500
1,000,000 Eastern Michigan University, GO,
5.80%, 6/1/01 (Insured by
AMBAC).......................... 1,046,250
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 445,000 Farmington Hills, Economic
Development Corp. Revenue,
Botsford Continuing Care, Series
A, 5.10%, 2/15/04 (Insured by
MBIA)........................... $ 450,006
470,000 Farmington Hills, Economic
Development Corp. Revenue,
Botsford Continuing Care, Series
A, 5.20%, 2/15/05 (Insured by
MBIA)........................... 476,463
1,915,000 Flint Hospital Building
Authority, Hurley Medical
Center, Series A, 7.00%,
7/1/97.......................... 1,915,000
1,000,000 Grand Haven Area Public Schools,
GO, 5.45%, 5/1/04 (Insured by
MBIA)........................... 1,042,500
1,250,000 Greater Detroit Resource
Recovery Authority, Series B,
5.00%, 12/13/02 (Insured by
AMBAC).......................... 1,273,438
1,500,000 Haslett Public School District,
GO, Prerefunded 5/1/00 @ 101,
7.50%, 5/1/20................... 1,636,875
1,000,000 Holland Electric Revenue,
Prerefunded 7/1/99 @ 100, 6.40%,
7/1/02.......................... 1,042,500
1,100,000 Holland Electric Revenue,
Prerefunded 7/1/99 @ 100, 6.50%,
7/1/03.......................... 1,148,125
675,000 Hudsonville Public Schools,
Series B, GO, 4.50%, 5/1/98
(Insured by FGIC)............... 678,726
1,250,000 Huron Valley School District,
GO, Prerefunded 5/1/01 @ 102,
7.10%, 5/1/08 (Insured by
FGIC)........................... 1,389,063
1,810,000 Kalamazoo Hospital Finance
Authority, Refunding &
Improvement, Bronson Methodist
Hospital, 4.95%, 5/15/02
(Insured by MBIA)............... 1,834,888
1,000,000 Kalamazoo Hospital Finance
Authority, Refunding &
Improvement, Bronson Methodist
Hospital, 5.25%, 5/15/05
(Insured by MBIA)............... 1,022,500
1,295,000 Kenowa Hills Public Schools, GO,
5.50%, 5/1/05................... 1,354,894
500,000 Kent County Airport Facility,
Kent County International
Airport, (AMT), 5.25%, 1/1/04... 512,500
505,000 Kent County Airport Facility,
Kent County International
Airport, (AMT), 5.30%, 1/1/05... 519,519
1,150,000 Kent Hospital Finance Authority,
Butterworth Hospital, Series A,
4.90%, 1/15/05.................. 1,139,938
</TABLE>
Continued
76
<PAGE> 79
MICHIGAN MUNICIPAL BOND FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 2,000,000 Lake Orion Community School
District, GO, 6.20%, 5/1/04
(Insured by AMBAC).............. $ 2,172,500
1,020,000 Michigan Municipal Bond
Authority, Local Government Loan
Program, Qualified School,
6.35%, 5/15/01.................. 1,086,300
1,000,000 Michigan Municipal Bond
Authority, Local Government Loan
Program, Series B, 6.90%, 5/1/99
(Insured by FGIC)............... 1,046,250
1,000,000 Michigan Municipal Bond
Authority, Pooled Projects,
Series B, 5.10%, 10/1/04........ 1,022,500
2,000,000 Michigan Municipal Bond
Authority, State Revolving Fund,
5.50%, 10/1/06.................. 2,087,500
1,000,000 Michigan Municipal Bond
Authority, State Revolving Fund,
5.50%, 10/1/99.................. 1,026,250
2,000,000 Michigan Public Power Agency,
Belle River Project, Series A,
5.30%, 1/1/00................... 2,040,000
750,000 Michigan Public Power Agency,
Belle River Project, Series A,
5.70%, 1/1/03................... 784,688
1,000,000 Michigan State Building
Authority, Series II, 6.10%,
10/1/01......................... 1,060,000
3,000,000 Michigan State Comprehensive
Transportation, Series B, 5.63%,
5/15/03, Callable 7/1/02 @
102............................. 3,127,499
1,855,000 Michigan State Hospital Finance
Authority, Bay Medical Center,
Series A, 5.38%, 7/1/06 (Insured
by FSA)......................... 1,915,288
2,000,000 Michigan State Hospital Finance
Authority, McLaren Healthcare,
Series A, 5.75%, 10/15/03....... 2,080,000
1,500,000 Michigan State Hospital Finance
Authority, Mercy Health
Services, Series S, 6.00%,
8/15/06......................... 1,605,000
1,000,000 Michigan State Hospital Finance
Authority, Oakwood Hospital
Obligation Group, Prerefunded
7/1/00 @ 102, 6.95%, 7/1/02
(Insured by FGIC)............... 1,090,000
1,060,000 Michigan State Hospital Finance
Authority, Sisters of Mercy
Health Corp., Series J, 7.15%,
2/15/99......................... 1,105,050
2,800,000 Michigan State Hospital Finance
Authority, Sisters of Mercy
Health Corp., Series J,
Prerefunded 2/15/01 @ 102,
7.38%, 2/15/11.................. 3,121,999
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 1,000,000 Michigan State Hospital Finance
Authority, Sisters of Mercy
Health Corp., Series P, 4.60%,
8/15/02, (Insured by MBIA)...... $ 1,000,000
1,150,000 Michigan State Hospital Finance
Authority, St. John Hospital &
Medical Center, 4.50%, 5/15/01,
(Insured by AMBAC).............. 1,148,563
1,000,000 Michigan State Hospital Finance
Authority, St. John Hospital &
Medical Center, 5.00%, 5/15/05,
(Insured by AMBAC).............. 1,007,500
2,680,000 Michigan State Housing
Development Authority, Rental
Housing Revenue, Series A (AMT),
5.25%, 10/1/01 (Insured by
MBIA)........................... 2,720,199
885,000 Michigan State Strategic Fund,
Industrial Development Revenue,
Grand Rapids Motel Co. Project,
(AMT), 5.25%*, 6/1/98........... 887,292
2,300,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Detroit Edison, 4.00%*, 7/7/97
(LOC: Barclays Bank PLC)........ 2,300,000
415,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Lutheran Social Services
Project, 4.40%, 9/1/98 (LOC:
First of America)............... 415,519
2,000,000 Michigan State Underground
Storage, Tank Financial
Assurance Authority, Series I,
5.00%, 5/1/00 (Insured by
AMBAC).......................... 2,035,000
1,270,000 Michigan State Underground
Storage, Tank Financial
Assurance Authority, Series I,
6.00%, 5/1/06 (Insured by
AMBAC).......................... 1,373,188
1,100,000 Midland County, Economic
Development Corp., Dow Chemical,
Series B, 4.00%*, 12/1/15....... 1,100,000
1,000,000 Mount Clemens Community School
District, GO, Prerefunded 5/1/02
@ 102, 6.60%, 5/1/20 (Insured by
MBIA)........................... 1,106,250
1,000,000 Oakland County, Community
College, Prerefunded 5/1/02 @
100, 6.65%, 5/1/11.............. 1,106,250
1,580,000 Oakland County, Economic
Development Corp. Revenue,
Boardwalk Shopping Center,
Limited Obligation Revenue,
4.75%*, 1/1/09, Mandatory put
7/1/98.......................... 1,581,359
</TABLE>
Continued
77
<PAGE> 80
The Kent MICHIGAN MUNICIPAL BOND FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 600,000 Oakland County, Economic
Development Corp. Revenue, Sugar
Tree Shopping Center, 4.75%*,
1/1/14, Mandatory put 7/1/98.... $ 598,212
3,000,000 Okemos Public School District,
Series I, GO, 6.90%, 5/1/11,
Prerefunded 5/1/01 @ 102........ 3,303,749
3,200,000 Plymouth-Canton Community School
District, Series B, GO,
Prerefunded 5/1/01 @ 101, 6.80%,
5/1/17.......................... 3,487,999
750,000 Reeths-Puffer Schools, GO,
6.25%, 5/1/02 (Insured by
FGIC)........................... 804,375
735,000 Reeths-Puffer Schools, GO,
6.75%, 5/1/01 (Insured by
FGIC)........................... 792,881
1,600,000 Rochester Community School
District, Prerefunded 5/1/98 @
101, 7.25%, 5/1/03.............. 1,659,136
2,000,000 Rockford Public Schools, GO,
Prerefunded 5/1/00 @ 101,
7.375%, 5/1/19.................. 2,177,500
1,000,000 South Lyon Community Schools,
GO, Prerefunded 5/1/98 @ 102,
7.80%, 5/1/14................... 1,051,510
3,000,000 University of Michigan, Hospital
Revenue, Series A, 4.05%*,
12/1/19......................... 2,999,999
1,000,000 University of Michigan,
Intercollegiate Athletic
Revenue, 3.85%*, 6/1/00......... 1,000,000
2,035,000 Walled Lake Consolidated School
District, GO, 4.70%, 5/1/01..... 2,055,350
2,235,000 Walled Lake Consolidated School
District, GO, 4.80%, 5/1/02..... 2,262,938
2,000,000 Walled Lake Consolidated School
District, Series II, GO,
Prerefunded 5/1/00 @ 102, 7.10%,
5/1/05.......................... 2,180,000
945,000 Warren Consolidated School
District, GO, 6.00%, 5/1/01..... 995,794
1,000,000 Warren Consolidated School
District, GO, Prerefunded 5/1/02
@ 102, 6.625%, 5/1/21........... 1,105,000
1,025,000 Washtenaw Community College, GO,
4.70%, 4/1/03 (Insured by
FGIC)........................... 1,023,719
550,000 Wayne County Downriver System
Sewer Disposal, GO, 3.75%,
5/1/98.......................... 545,512
550,000 Wayne County Downriver System
Sewer Disposal, GO, 3.75%,
5/1/99.......................... 534,875
550,000 Wayne County Downriver System
Sewer Disposal, GO, 3.75%,
5/1/00.......................... 523,188
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 1,750,000 Western Michigan University,
Series A, Prerefunded 7/15/01 @
102, 6.50%, 7/15/21 (Insured by
AMBAC).......................... $ 1,914,063
1,000,000 Wyandotte Electric Revenue,
6.20%, 10/1/03 (Insured by
MBIA)........................... 1,073,750
1,150,000 Ypsilanti School District,
4.50%, 5/1/00 (Insured by
FGIC)........................... 1,152,875
------------
124,747,386
------------
PUERTO RICO -- 2.4%
3,000,000 Puerto Rico Commonwealth Highway
& Transportation Authority,
Highway Revenue, Series X,
4.90%, 7/1/01................... 3,030,000
------------
TOTAL MUNICIPAL BONDS........... 127,777,386
(cost $126,002,615) ------------
INVESTMENT COMPANIES -- 0.9%
1,178,689 Dreyfus Tax-Exempt Cash
Management Fund................. 1,178,689
------------
TOTAL INVESTMENT COMPANIES...... 1,178,689
(cost $1,178,689)
TOTAL INVESTMENTS -- 101.9%.................. 128,956,075
(cost $127,181,304)(a)
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.9%)........................... (2,462,579)
------------
TOTAL NET ASSETS -- 100.0%................... $126,493,496
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $126,493,496.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation................. $1,830,446
Unrealized depreciation................. (55,675)
----------
Net unrealized appreciation............. $1,774,771
==========
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects final maturity date.
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Corp.
FSA Financial Security Assurance
GO General Obligation
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
</TABLE>
See Notes to Financial Statements.
Continued
78
<PAGE> 81
The Kent MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ ------------------------------- ------------
<S> <C> <C>
BANK NOTES -- 1.7%
$ 5,000,000 First Chicago NBD Corp., 5.82%,
10/20/97....................... $ 5,000,601
5,000,000 Huntington National Bank,
5.77%, 9/2/97.................. 4,999,915
------------
TOTAL BANK NOTES............... 10,000,516
(amortized cost $10,000,516) ------------
BANKERS ACCEPTANCES -- 14.5%
4,655,174 Chase Manhattan Bank, N.A.,
5.58%, 7/21/97................. 4,640,743
5,000,000 Chase Manhattan Bank, N.A.,
5.60%, 8/4/97.................. 4,973,556
5,699,322 Chase Manhattan Bank, N.A.,
5.59%, 9/30/97................. 5,618,789
7,863,495 Chase Manhattan Bank, N.A.,
5.61%, 10/20/97................ 7,727,476
5,000,000 Corestates Bank, 5.60%,
8/1/97......................... 4,975,889
10,000,000 J. P. Morgan & Co., 5.71%,
1/6/98......................... 9,992,024
5,000,000 Mellon Bank, N.A., 5.52%,
7/15/97........................ 4,989,267
5,000,000 Mellon Bank, N.A., 5.66%,
11/25/97....................... 4,884,442
5,000,000 Mellon Bank, N.A., 5.59%,
12/10/97....................... 4,874,225
7,000,000 National City Bank, 5.52%,
7/17/97........................ 6,982,827
5,000,000 Republic National Bank of New
York, 5.34%, 7/9/97............ 4,994,067
5,000,000 Suntrust Bank, N.A., 5.57%,
7/7/97......................... 4,995,358
4,037,084 Suntrust Bank, N.A., 5.55%,
7/22/97........................ 4,024,014
7,000,000 Suntrust Bank, N.A., 5.56%,
8/5/97......................... 6,962,161
5,000,000 Wachovia Bank of Georgia, N.A.,
5.55%, 7/9/97.................. 4,993,833
------------
TOTAL BANKERS ACCEPTANCES...... 85,628,671
(amortized cost $85,628,671) ------------
COMMERCIAL PAPER -- 42.5%
5,000,000 ABN Amro Bank, 5.72%,
10/15/97....................... 4,915,789
5,000,000 Armstrong World Industries,
5.60%, 7/11/97................. 4,992,222
4,700,000 Banque National De Paris
Canada, 5.64%, 7/2/97.......... 4,699,264
4,090,000 Becton Dickinson, 6.15%,
7/1/97......................... 4,090,000
5,000,000 Becton Dickinson, 5.31%,
7/30/97........................ 4,978,613
5,000,000 Becton Dickinson, 5.63%,
9/3/97......................... 4,949,956
5,000,000 Cargill, Inc., 6.15%, 7/1/97... 4,999,999
5,000,000 Cargill, Inc., 5.55%,
10/14/97....................... 4,919,063
5,000,000 Cargill, Inc., 5.55%,
10/30/97....................... 4,906,729
5,000,000 Daimler Benz N.A. Corp., 5.55%,
7/7/97......................... 4,995,375
4,000,000 Daimler Benz N.A. Corp., 5.38%,
7/18/97........................ 3,989,838
5,000,000 Daimler Benz N.A. Corp., 5.59%,
9/9/97......................... 4,945,653
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ ------------------------------- ------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$ 5,000,000 Daimler Benz N.A. Corp., 5.73%,
9/17/97........................ $ 4,937,925
5,000,000 Daimler Benz N.A. Corp., 5.55%,
9/26/97........................ 4,932,938
5,000,000 Dresdner US Finance, Inc.,
5.50%, 7/1/97.................. 5,000,000
5,000,000 E.I. Dupont De Nemours & Co.,
5.60%, 11/4/97................. 4,902,000
5,000,000 Ford Motor Credit Co., 5.56%,
10/21/97....................... 4,913,511
5,000,000 Ford Motor Credit Co., 5.57%,
10/22/97....................... 4,912,582
5,000,000 General Electric Capital Corp.,
5.72%, 9/26/97................. 4,930,883
5,000,000 General Electric Capital Corp.,
5.56%, 10/22/97................ 4,912,739
5,000,000 General Electric Capital Corp.,
5.57%, 11/19/97................ 4,890,921
5,000,000 General Motors Acceptance
Corp., 6.20%, 7/1/97........... 5,000,000
5,000,000 General Motors Acceptance
Corp., 5.63%, 7/8/97........... 4,994,526
5,000,000 General Motors Acceptance
Corp., 5.58%, 11/20/97......... 4,889,950
5,000,000 General Motors Acceptance
Corp., 5.70%, 12/8/97.......... 4,873,333
5,000,000 General Motors Acceptance
Corp., 5.60%, 12/17/97......... 4,868,556
4,350,000 GTE Corp., 5.56%, 7/17/97...... 4,339,251
5,000,000 H.J. Heinz Co., 5.57%,
7/1/97......................... 5,000,000
5,000,000 H.J. Heinz Co., 5.55%,
7/14/97........................ 4,989,979
5,000,000 Household Finance Corp., 5.61%,
7/2/97......................... 4,999,221
5,000,000 Household Finance Corp., 5.57%,
7/21/97........................ 4,984,528
5,000,000 Household Finance Corp., 5.54%,
10/28/97....................... 4,908,436
5,000,000 Philip Morris, 5.55%,
8/11/97........................ 4,968,396
5,000,000 Pitney Bowes Credit Corp.,
5.65%, 9/23/97................. 4,934,083
5,000,000 Schering Corp, 5.66%,
10/14/97....................... 4,917,458
5,000,000 Societe Generale, 5.62%,
7/17/97........................ 4,987,511
3,219,000 Southern New England
Telecommunications, 5.56%,
8/4/97......................... 3,202,097
5,000,000 Southwestern Bell Telephone,
5.53%, 7/28/97................. 4,979,263
5,000,000 Southwestern Bell Telephone,
5.53%, 8/26/97................. 4,956,989
5,000,000 Toyota Motor Credit Corp.,
5.55%, 7/28/97................. 4,979,188
5,000,000 Toyota Motor Credit Corp.,
5.56%, 8/15/97................. 4,965,250
20,000,000 Unilever Capital Corp., 6.30%,
7/1/97......................... 19,999,999
17,320,000 Walt Disney Co., 6.10%,
7/1/97......................... 17,319,999
</TABLE>
Continued
79
<PAGE> 82
The Kent MONEY MARKET FUND
Fund PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ ------------------------------- ------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
$ 5,000,000 Walt Disney Co., 5.22%,
7/24/97........................ $ 4,982,910
4,800,000 Weyerhauser Co., 5.56%,
7/9/97......................... 4,794,069
5,000,000 Weyerhauser Co., 5.57%,
7/24/97........................ 4,982,207
------------
TOTAL COMMERCIAL PAPER......... 250,533,199
(amortized cost $250,533,199) ------------
DEMAND NOTES -- 8.8%
3,000,000 City of Cloquet, Minnesota
Taxable Industrial Bond, Series
1996B, 5.75%, 7/2/97, (LOC:
Credit Suisse)................. 3,000,000
4,700,000 CS Manufacturing, Inc., 5.75%*,
7/2/97, (LOC: NBD Bank)........ 4,700,000
5,915,000 FC Bellevue, Inc, 5.70%*,
7/3/97, (LOC: National City
Bank Cleveland, Ohio).......... 5,915,000
5,000,000 First Metro Title Co., 5.68%*,
7/3/97, (LOC: Michigan National
Bank).......................... 5,000,000
4,790,000 Harry W. Albright, Jr., 5.68%*,
7/3/97......................... 4,790,000
3,000,000 La Mirada, CA, Industrial
Development Authority, 5.75%*,
7/2/97, (LOC: First National
Bank, Chicago)................. 3,000,000
5,000,000 Labelle Capital Funding,
L.L.C., 5.68%*, 7/3/97, (LOC:
First of America
Bank-Michigan)................. 5,000,000
8,530,000 PRD Finance, L.L.C., 5.69%*,
7/3/97, (LOC: First of America
Bank).......................... 8,530,000
5,000,000 Sheperd Capital, L.L.C.,
5.68%*, 7/3/97, (LOC: Comerica
Bank).......................... 5,000,000
1,275,000 The Economic Development Corp.
of the County of Marquette,
5.75%*, 7/3/97, Pioneer
Laboratories, Inc. Project..... 1,275,000
6,000,000 Zeigler Realty, L.L.C, 5.68%*,
7/3/97, (LOC: First of America
Bank).......................... 6,000,000
------------
TOTAL DEMAND NOTES............. 52,210,000
(amortized cost $52,210,000) ------------
EURO CERTIFICATES OF DEPOSIT -- 7.6%
5,000,000 Bayerische Landesbank, 5.53%,
7/14/97........................ 5,000,018
5,000,000 Bayerische Landesbank, 5.58%,
9/8/97......................... 4,999,773
5,000,000 Bayerische Vereinsbank, 5.64%,
9/17/97........................ 4,999,991
5,000,000 Commerzbank Group, 5.59%,
9/5/97......................... 4,999,549
5,000,000 National Westminster Bank,
5.69%, 7/3/97.................. 5,000,002
5,000,000 National Westminster Bank,
5.66%, 10/1/97................. 4,999,978
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ ------------------------------- ------------
<S> <C> <C>
EURO CERTIFICATES OF DEPOSIT (CONTINUED)
$ 5,000,000 Rabobank Nederland, 5.48%,
7/7/97......................... $ 4,999,976
5,000,000 Toronto Dominion, 5.48%,
7/7/97......................... 5,000,000
5,000,000 Toronto Dominion, 5.40%,
8/21/97........................ 4,996,812
------------
TOTAL EURO CERTIFICATES OF
DEPOSIT........................ 44,996,099
(amortized cost $44,996,099) ------------
FUNDING AGREEMENTS -- 1.7%
5,000,000 Allstate Financial Corp.,
5.83%*, 3/1/98................. 5,000,000
5,000,000 Allstate Financial Corp.,
5.83%*, 5/1/98................. 5,000,000
------------
TOTAL FUNDING AGREEMENTS....... 10,000,000
(amortized cost $10,000,000) ------------
YANKEE CERTIFICATES OF DEPOSIT -- 14.0%
5,000,000 ABN Amro Bank, 5.45%, 8/18/97.. 5,000,287
5,000,000 Bank of Nova Scotia, 5.74%,
7/30/97........................ 5,000,000
5,000,000 Bank of Nova Scotia, 5.72%,
8/20/97........................ 5,000,000
5,000,000 Banque National De Paris,
5.78%, 2/4/98.................. 4,994,852
5,000,000 Barclays Bank Plc, 5.60%,
7/21/97........................ 5,000,000
5,000,000 Barclays Bank Plc, 5.87%,
3/9/98......................... 4,999,513
5,000,000 Bayerische Landesbank, 5.67%,
7/24/97........................ 4,999,840
5,000,000 Canadian Imperial Bank of
Commerce, 5.65%, 7/14/97....... 4,999,899
5,000,000 Credit Suisse, 5.48%, 7/7/97... 4,999,984
5,000,000 Mellon Bank, N.A., 5.80%,
10/14/97....................... 5,000,000
4,500,000 National Westminster Bank,
5.94%, 10/15/97................ 4,502,856
5,000,000 Rabobank Nederland, 5.53%,
7/23/97........................ 5,000,030
3,000,000 Societe Generale, 5.47%,
7/11/97........................ 2,999,993
5,000,000 Societe Generale, 5.56%,
9/2/97......................... 5,000,000
5,000,000 Societe Generale, 5.90%,
11/13/97....................... 5,000,528
5,000,000 Societe Generale, 5.88%,
11/24/97....................... 5,000,859
5,000,000 Societe Generale, 5.75%,
1/5/98......................... 4,994,555
------------
TOTAL YANKEE CERTIFICATES OF
DEPOSIT........................ 82,493,196
(amortized cost $82,493,196) ------------
REPURCHASE AGREEMENTS -- 6.1%
36,000,000 Donaldson, Lufkin & Jenrette,
5.90%, dated 6/30/97, due
7/1/97 with a maturity value of
$36,005,900, (collateralized by
$29,262,000 U.S. Treasury
Bonds, 9.00%, 11/15/18, market
value $36,720,000)............. 36,000,000
------------
TOTAL REPURCHASE AGREEMENTS.... 36,000,000
(amortized cost $36,000,000) ------------
</TABLE>
Continued
80
<PAGE> 83
The MONEY MARKET FUND
Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ------------ ------------------------------- ------------
<S> <C> <C>
INVESTMENT COMPANIES -- 3.0%
$ 17,722,222 Dreyfus Cash Management Money
Market Fund.................... $ 17,722,222
------------
TOTAL INVESTMENT COMPANIES..... 17,722,222
------------
TOTAL INVESTMENTS -- 99.9%................... 589,583,903
(amortized cost $589,583,903)(a)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.1%........................ 367,610
------------
TOTAL NET ASSETS -- 100.0%................... $589,951,513
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $589,951,513.
(a) Cost for federal income tax and financial reporting purposes is the same.
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects next rate change date.
LOC Letter of Credit
See Notes to Financial Statements.
(Continued)
81
<PAGE> 84
The Kent GOVERNMENT MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- --------------------------------- -----------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 91.3%
FEDERAL FARM CREDIT BANK -- 12.0%
$ 2,000,000 5.40%, 7/15/97................... $ 1,995,800
1,785,000 5.41%, 7/23/97................... 1,779,099
5,000,000 5.52%, 3/18/98................... 4,800,666
------------
8,575,565
------------
FEDERAL HOME LOAN BANK -- 15.3%
1,100,000 5.40%, 7/9/97.................... 1,098,680
5,000,000 5.46%, 9/22/97................... 4,937,058
5,000,000 5.47%, 11/28/97.................. 4,886,042
------------
10,921,780
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 37.6%
5,000,000 5.43%, 7/1/97.................... 5,000,000
4,000,000 5.46%, 7/7/97.................... 3,996,360
3,000,000 5.44%, 7/9/97.................... 2,996,373
5,000,000 5.44%, 8/21/97................... 4,961,467
5,000,000 5.45%, 8/27/97................... 4,956,854
5,000,000 5.48%, 9/4/97.................... 4,950,528
------------
26,861,582
------------
FEDERAL NATIONAL MORTGAGE ASSOC. -- 26.4%
4,000,000 5.46%, 7/10/97................... 3,994,540
5,000,000 5.43%, 7/18/97................... 4,987,179
5,000,000 5.48%, 9/24/97................... 4,935,306
5,000,000 5.46%, 10/20/97.................. 4,915,825
------------
18,832,850
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS...................... 65,191,777
(amortized cost $65,191,777) ------------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- --------------------------------- -----------
<S> <C> <C>
REPURCHASE AGREEMENTS -- 7.0%
$ 5,000,000 Donaldson, Lufkin & Jenrette,
5.90%, dated 6/30/97, due 7/1/97
with a maturity value of
$5,000,819, (collateralized by
$5,038,000 U.S. Treasury Notes,
6.50%, 5/31/01, market value
$5,100,000)...................... $ 5,000,000
------------
TOTAL REPURCHASE AGREEMENTS...... 5,000,000
(amortized cost $5,000,000) ------------
INVESTMENT COMPANIES -- 2.1%
726,590 Dreyfus Cash Management Money
Market Fund...................... 726,590
741,720 Federated Government Obligations
Money Market Fund................ 741,720
------------
TOTAL INVESTMENT COMPANIES....... 1,468,310
(amortized cost $1,468,310) ------------
TOTAL INVESTMENTS -- 100.4%................... 71,660,087
(amortized cost $71,660,087)(a)
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.4%)............................ (302,527)
------------
TOTAL NET ASSETS -- 100.0%.................... $71,357,560
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $71,357,560.
(a) Cost for federal income tax and financial reporting purposes is the same.
See Notes to Financial Statements.
82
<PAGE> 85
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS -- 84.9%
MICHIGAN -- 78.7%
$ 605,000 Bay City, Michigan, Electric
Revenue, 5.00%, 1/1/98, (Insured
by AMBAC)....................... $ 608,475
500,000 Central Michigan University
Revenues, Prerefunded 10/1/97 @
102, 7.88%, 10/1/08, (Insured by
MBIA)........................... 522,941
675,000 Clinton Township, Michigan,
Economic Development Corp.,
Prairie Village Square, STP,
4.10%*, 8/1/97, (LOC: First of
America)........................ 675,000
500,000 Delta County, Economic
Development Corp., Environmental
Improvement, Mead Escambia Paper
Co., Series C, 4.10%*, 7/7/97,
(LOC: Bank of Nova Scotia)...... 500,000
1,000,000 Detroit City School District,
State Aid, 4.50%, 5/1/98........ 1,004,843
680,000 Ecorse, Michigan Public School
District, 3.90%, 5/1/98,
(Insured by FGIC)............... 680,000
415,000 Farmington Hills, Michigan
Education, Marketing Displays,
STP, 3.70%*, 9/1/97, (LOC:
Comerica)....................... 415,000
1,855,000 Genesse County, Economic
Development Corp., Grand Blanc
Convalescent Center, STP,
3.80%*, 11/3/97, (LOC: Citizens
Commercial & Savings Bank)...... 1,855,000
2,500,000 Grand Rapids Water Supply,
Prefunded 1/1/98 @ 102, 7.88%,
1/1/18.......................... 2,598,949
3,000,000 Holland Economic Development
Corp., Thrifty Holland, Inc.,
3.85%*, 7/2/97, (LOC: IBJ)...... 3,000,000
4,000,000 Kalamazoo, Economic Development
Corp., Friendship Village,
3.95%*, 7/2/97, (LOC: Lasalle
Bank)........................... 4,000,000
2,225,000 Leelanau County, Economic
Development Corp., American
Community Mutual Insurance Co.,
STP, 3.77%*, 12/15/97, (LOC:
First of America)............... 2,225,000
430,000 Livonia County, Economic
Development Corp., American
Community Mutual Insurance Co.,
STP, 3.91%*, 11/17/97 (LOC:
First of America)............... 430,000
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 1,300,000 Marquette County, Economic
Development Corp., Pioneer Labs,
Inc., (AMT), 4.10%*,7/3/97,
(LOC: NBD)...................... $ 1,300,000
2,000,000 Meridian, Hannah Technology,
4.10%*, 7/15/97, (LOC:
Comerica)....................... 2,000,000
2,250,000 Michigan Higher Education
Student Loan Authority, Series
XII-E, (AMT), 6.00%, 10/1/97
(Insured by AMBAC).............. 2,262,785
1,000,000 Michigan Municipal Bond
Authority, School State Aid
Notes, Series 1996B, 4.50%,
7/25/97......................... 1,000,348
1,000,000 Michigan Municipal Bond
Authority, 6.80%, 5/1/98,
(Insured by FGIC)............... 1,023,441
5,570,000 Michigan Municipal Bond
Authority, 4.75%, 5/1/98........ 5,603,455
2,500,000 Michigan Municipal Bond
Authority, 4.50%, 7/2/98........ 2,516,859
2,200,000 Michigan Municipal Bond
Authority, Series A, 4.50%,
7/3/97.......................... 2,200,068
2,000,000 Michigan State Building
Authority, 5.60%, 10/1/97....... 2,008,720
1,000,000 Michigan State Comprehensive
Transportation, 6.55%, 9/1/97,
Series 1988-I................... 1,004,561
2,000,000 Michigan State Hospital Finance
Authority Revenue, Martin Luther
Memorial Home, Inc., 3.90%*,
7/2/97, (LOC: Bank One Indiana,
N.A.)........................... 2,000,000
1,500,000 Michigan State Hospital Finance
Authority Revenue, Oakwood
Hospital, 3.92%, 11/1/97,
(Insured by FGIC)............... 1,501,724
500,000 Michigan State Housing
Development Authority, Pine
Ridge, Limited Obligation
Revenue, 4.10%*, 7/2/97, (LOC:
Wachovia)....................... 500,000
350,000 Michigan State Housing
Development Authority, Limited
Obligation Revenue, 4.35%*,
7/2/97, (LOC: Credit Suisse).... 350,000
3,300,000 Michigan State Job Development
Authority, BASF Wyandotte,
4.30%*, 7/1/97, (LOC: Credit
Suisse)......................... 3,300,000
1,200,000 Michigan State Job Development
Authority, Hitachi Metals,
3.90%*, 7/2/97, (LOC: Sanwa Bank
Ltd.)........................... 1,200,000
</TABLE>
Continued
83
<PAGE> 86
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 4,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Creative Foam, 4.20%*, 7/2/97,
(LOC: NBD)...................... $ 4,000,000
1,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
C-Tec, (AMT), 4.30%*, 7/3/97,
(LOC: Suntrust Bank)............ 1,000,000
2,750,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Advanced Tooling System, (AMT),
4.35%*, 7/3/97, (LOC: First
Michigan Bank).................. 2,750,000
1,160,000 Michigan State Strategic Fund,
Limited Obligation Revenue, B.K.
Hardwoods, (AMT), 4.35%*,
7/3/97, (LOC: First Michigan
Bank)........................... 1,160,000
2,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Bowers Manufacturing Co.
Project, (AMT), 4.20%*, 7/3/97,
(LOC: NBD)...................... 2,000,000
2,500,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Cincinnati Milacron, (AMT),
4.40%*, 7/3/97, (LOC: PNC
Bank)........................... 2,500,000
2,300,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Detroit Edison, 4.00%*, 7/7/97
(LOC: Barclays Bank PLC)........ 2,300,000
1,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Dickinson Press, Inc. Project,
(AMT), 4.35%*, 7/3/97, (LOC:
First Michigan Bank)............ 1,000,000
2,500,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Donnelly Corp. B, STP, (AMT),
4.00%*, 10/1/97, (LOC: Dresdner
Bank)........................... 2,500,000
2,500,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Donnelly Corp., (AMT), 4.30%*,
7/3/97, (LOC: Dresdner Bank).... 2,500,000
5,100,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Dow
Chemical, (AMT), 4.25%*,
7/7/97.......................... 5,100,000
2,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Horizon Devco L.L.C. Project,
(AMT), 4.20%*, 7/3/97, (LOC:
NBD)............................ 2,000,000
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 2,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
I.V.C. Industrial Coatings,
Inc., (AMT), 4.30%*, 7/3/97,
(LOC: Bank One)................. $ 2,000,000
1,700,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Industrial Development, Kinder
Care, (AMT), 4.35%*, 7/2/97,
(LOC: Toronto Dominion)......... 1,700,000
4,975,000 Michigan State Strategic Fund,
Limited Obligation Revenue, JB
Labs, Inc., (AMT), 4.35%*,
7/3/97, (LOC: Credit Suisse).... 4,975,000
1,100,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Jet
Enterprises, (AMT), 4.20%*,
7/3/97, (LOC: NBD).............. 1,100,000
510,000 Michigan State Strategic Fund,
Limited Obligation Revenue, John
A. Biewer Co., Inc., STP, (AMT),
3.90%*, 9/1/97, (LOC: Michigan
National Bank).................. 510,000
5,500,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Karona, Inc. Project, (AMT),
4.40%*, 7/3/97, (LOC: First of
America)........................ 5,498,061
365,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Kay
Screen Printing, Inc., (AMT),
4.40%*, 7/3/97, (LOC:
Comerica)....................... 365,000
2,430,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Kay
Screen Printing, Inc., (AMT),
4.40%*, 7/3/97, (LOC:
Comerica)....................... 2,430,000
205,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Kazoo Inc. Project, (AMT),
3.90%*, 9/15/97, (LOC: First of
America)........................ 205,000
3,155,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Kerkstra Precast Project, (AMT),
4.35%*, 7/3/97, (LOC: First
Michigan Bank).................. 3,155,000
1,900,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Knight Industries, (AMT),
4.20%*, 7/2/97, (LOC: NBD)...... 1,900,000
3,025,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Midbrook Products, Inc. Project,
(AMT), 4.25%*, 7/3/97, (LOC:
Comerica)....................... 3,025,000
</TABLE>
Continued
84
<PAGE> 87
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 995,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Molmec, Inc., (AMT), 4.35%*,
7/3/97, (LOC: Comerica)......... $ 995,000
1,750,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Omni
Technical Services, Inc., (AMT),
4.40%*, 7/3/97, (LOC: First of
America)........................ 1,750,000
3,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Ort
Tool & Die Corp., (AMT), 4.40%*,
7/3/97, (LOC: National City
Bank)........................... 3,000,000
750,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Patten Monument, (AMT), 4.35%*,
7/3/97, (LOC: First Michigan
Bank)........................... 750,000
4,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Pelzer (H.P.) Inc., (AMT),
4.20%*, 7/3/97, (LOC: NBD)...... 4,000,000
1,500,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Pilot Industries, (AMT), 4.50%*,
7/3/97, (LOC: NBD).............. 1,500,000
1,460,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Plascore, Inc., (AMT), 4.35%*,
7/3/97, (LOC: First Michigan
Bank)........................... 1,460,000
1,600,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Rochester Gear Project, (AMT),
4.25%, 7/3/97, (LOC:
Comerica)....................... 1,600,000
3,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Solid Waste Disposal, Grayling
Generating Project, (AMT),
4.25%*, 7/2/97, (LOC: Barclays
Bank)........................... 3,000,000
980,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Stephenson Land Co. Project,
(AMT), 4.25%*, 7/3/97, (LOC:
Comerica)....................... 980,000
765,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Tawas Bay Associates Project,
STP, 3.95%*, 12/1/97 (LOC: First
of America)..................... 765,000
520,000 Michigan State Strategic Fund,
Limited Obligation Revenue, Tom
Miller Inc., (AMT), 4.20%*,
7/3/97, (LOC: First Union
National Bank).................. 520,000
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 4,595,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
United Fixtures Co. Project,
(AMT), 4.20%*, 7/3/97, (LOC:
Bankers Trust).................. $ 4,595,000
2,800,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
United Waste System, (AMT),
4.30%*, 7/2/97, (LOC: Bank of
America)........................ 2,800,000
2,000,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Waltec Amer. Forg., (AMT),
4.20%*, 7/3/97, (LOC: Bank of
Nova Scotia).................... 2,000,000
1,075,000 Michigan State Strategic Fund,
Limited Obligation Revenue,
Wright Technology, Inc., Series
97, (AMT), 4.85%*, 7/3/97, (LOC:
First of America)............... 1,075,000
690,000 Michigan State Trunk Line,
Series B, 6.13%, 11/3/97,
(Insured by FGIC)............... 695,593
1,000,000 Michigan State Trunk Line,
Series B, 4.50%, 11/15/97,
(Insured by FGIC)............... 1,002,558
1,075,000 Michigan State University
Revenues, Series A, 4.70%,
8/15/97......................... 1,076,395
4,500,000 Midland County, Economic
Development Corp., Limited
Obligation Revenue, Dow
Chemical, Series A, (AMT),
4.10%*, 7/7/97.................. 4,500,000
675,000 Oakland County, Economic
Development Corp., Orchard Maple
Project, STP, 3.90%*, 11/15/97,
(LOC: First of America)......... 675,000
340,000 Rochester Hills, Economic
Development Corp., BRG
Association Project, STP,
3.84%*, 12/1/97, (LOC:
Comerica)....................... 340,000
1,040,000 St. Clair Shores, Michigan
Education (Borman's), (AMT),
4.00%*, 10/15/97, (LOC: MNB).... 1,040,000
3,500,000 University of Michigan, Hospital
Revenue, 4.05%*, 7/7/97......... 3,500,000
500,000 University of Michigan, Hospital
Revenue, Series A, 4.05%*,
7/7/97.......................... 500,000
1,835,000 Warren, Economic Development
Corp., CMX Corp. Project, STP,
(AMT), 3.90%*, 9/15/97, (LOC:
First of America)............... 1,835,000
</TABLE>
Continued
85
<PAGE> 88
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
<S> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN (CONTINUED)
$ 1,295,000 Warren, Economic Development
Corp., Cross Country Inn, STP,
(AMT), 3.90%*, 11/3/97, (LOC:
Huntington Bank)................ $ 1,295,000
575,000 Warren, Economic Development
Corp., Limited Obligation
Revenue, Elias Brothers, STP,
(AMT), 4.10%*, 12/1/97, (LOC:
Comerica)....................... 575,000
1,010,000 Wayne County Airport, (Detroit
Airport), Series A, (AMT),
4.25%*, 7/2/97, (LOC: Bayerische
Landesbank)..................... 1,010,000
------------
152,794,776
------------
PUERTO RICO (6.2%)
2,000,000 Commonwealth of Puerto Rico Tax
& Revenue Anticipation Notes,
Series 97-A, 4.00%, 7/30/97..... 2,000,891
4,200,000 Puerto Rico Industrial Medical &
Environmental Pollution Control,
Facilities Financing Authority,
Merck & Co., Series A, STP,
4.00%*, 12/1/97................. 4,200,000
3,000,000 Puerto Rico Industrial Medical &
Environmental Pollution Control,
Facilities Financing Authority,
Abbott Labs Project, STP,
3.74%*, 3/2/98.................. 3,000,000
2,750,000 Puerto Rico Industrial Medical &
Environmental Pollution Control,
Facilities Financing Authority,
Reynolds Metals, STP, 3.80%*,
9/1/97, (LOC: ABN/Amro Bank).... 2,750,000
------------
11,950,891
------------
TOTAL MUNICIPAL BONDS........... 164,745,667
------------
TAX FREE COMMERCIAL PAPER -- 16.1%
2,100,000 Cornell Township Economic
Development Corp., Industrial
Development Revenue, Mead-
Escanaba Paper Co., 3.75%,
7/8/97, (LOC: Credit Suisse).... 2,100,000
1,200,000 Delta County, Economic
Development Corp., Environmental
Improvement, Mead Escambia Paper
Co., Series A, 3.70%, 8/19/97,
(LOC: Swiss Bank)............... 1,200,000
1,500,000 Delta County, Economic
Development Corp., Environmental
Improvement, Mead Escambia Paper
Co., Series A, 3.70%, 8/19/97,
(LOC: Swiss Bank)............... 1,500,000
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
- ----------- -------------------------------- ------------
<S> <C> <C>
TAX FREE COMMERCIAL PAPER (CONTINUED)
$ 1,400,000 Delta County, Economic
Development Corp., Environmental
Improvement, Mead Escambia Paper
Co., Series B, 3.35%, 7/15/97,
(LOC: Union Bank of
Switzerland).................... $ 1,400,000
8,000,000 Michigan State Builders, 3.80%,
9/4/97, (LOC: CIBC)............. 8,000,000
3,000,000 Michigan State Housing
Development Authority,
Multifamily Series A, 3.80%,
(AMT), 7/8/97, (LOC: Credit
Suisse)......................... 3,000,000
3,450,000 Michigan State Housing
Development Authority,
Multifamily Series A, 3.80%,
(AMT), 7/8/97, (LOC: Credit
Suisse)......................... 3,450,000
2,600,000 Michigan State Housing
Development Authority, Series A,
IBCP, (AMT), 3.80%, 7/1/97,
(LOC: Credit Suisse)............ 2,600,000
7,000,000 Michigan State Underground Tank
Storage, 3.80%, 7/14/97, (LOC:
CIBC)........................... 6,999,999
1,000,000 Michigan State Underground Tank
Storage, 3.90%, 7/14/97, (LOC:
CIBC)........................... 1,000,000
------------
TOTAL TAX FREE COMMERCIAL
PAPER........................... 31,249,999
------------
INVESTMENT COMPANIES -- 0.5%
3,646 Dreyfus Tax-Exempt Cash
Management Fund................. 3,646
41,294 Federated Tax-Exempt Money
Market Fund..................... 41,294
1,014,337 Reich & Tang Daily Tax-Exempt
Proceeds Fund................... 1,014,337
------------
TOTAL INVESTMENT COMPANIES...... 1,059,277
------------
TOTAL INVESTMENTS -- 101.5%.................. 197,054,943
(amortized cost $197,054,943)(a)
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.5%)........................... (2,909,122)
------------
TOTAL NET ASSETS -- 100.0%................... $194,145,821
=============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $194,145,821.
(a) Cost for federal income tax and financial reporting purposes is the same.
* Variable rate security. Rate presented represents rate in effect at June 30,
1997. Maturity date reflects next rate change date.
Continued
86
<PAGE> 89
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Funds PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<S> <C>
AMBAC AMBAC Indemnity Corp.
AMT Alternative Minimum Tax Paper
FGIC Financial Guaranty Insurance Corp.
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
STP Short Term Put
</TABLE>
See Notes to Financial Statements.
87
<PAGE> 90
The Kent STATEMENTS OF ASSETS AND LIABILITIES
Funds JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
GROWTH AND SMALL COMPANY INTERNATIONAL INDEX
INCOME FUND GROWTH FUND GROWTH FUND EQUITY FUND
----------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost.................................... $524,632,111 $481,840,287 $380,112,540 $199,416,545
Net unrealized appreciation............................ 132,519,427 176,126,647 108,842,872 134,050,868
------------ ------------ ------------ ------------
Total investments at value............................. 657,151,538 657,966,934 488,955,412 333,467,413
Foreign currency at value (cost $246,654)................ -- -- 249,996 --
Receivable for investments sold.......................... 19,697,670 1,822,800 132,210 --
Receivable for capital shares sold....................... 104,338 15,469 11,000 40,058
Interest and dividends receivable........................ 1,245,580 466,729 1,657,551 461,992
Tax reclaim receivable................................... -- -- 650,223 --
Prepaid expenses......................................... 43,016 28,751 42,794 31,241
------------ ------------ ------------ ------------
Total Assets........................................... 678,242,142 660,300,683 491,834,939 334,000,704
------------ ------------ ------------ ------------
LIABILITIES:
Payable for investments purchased........................ 16,884,318 -- 425,352 164,938
Payable for capital shares redeemed...................... 6,538 13,985 117 72,752
Witholding taxes payable................................. -- -- 150,746 --
Net payable for variation margin on future contracts..... -- 74,280 -- --
Unrealized losses on forward foreign currency exchange
contracts.............................................. -- -- 114 45,220
Payable to adviser....................................... 50,821 49,920 40,553 10,970
Payable to administrator................................. 13,255 12,999 9,931 4,483
Distribution fees (Investment Shares).................... 4,563 3,521 1,977 3,556
Payable to custodian..................................... 9,955 13,952 111,892 5,578
Audit & legal fees payable............................... 13,751 13,311 8,910 6,623
Accrued expenses and other liabilities................... 40,461 30,936 13,760 49,627
------------ ------------ ------------ ------------
Total Liabilities...................................... 17,023,662 212,904 763,352 363,747
------------ ------------ ------------ ------------
NET ASSETS................................................. $661,218,480 $660,087,779 $491,071,587 $333,636,957
============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid-in capital.......................................... $490,522,320 $463,970,292 $378,043,412 $198,630,491
Undistributed (distributions in excess of) net investment
income................................................. (165,620) (226,338) 2,190,096 45,200
Accumulated net realized gains on investments, foreign
currency and futures contracts sold.................... 38,342,353 20,254,378 2,020,250 793,138
Net unrealized appreciation of investments............... 132,519,427 176,126,647 108,842,872 134,050,868
Net unrealized appreciation (depreciation) of foreign
currency exchange contracts and futures contracts...... -- (37,200) (25,043) 117,260
------------ ------------ ------------ ------------
TOTAL NET ASSETS........................................... $661,218,480 $660,087,779 $491,071,587 $333,636,957
============ ============ ============ ============
INSTITUTIONAL SHARES:
Net Assets............................................... $638,085,668 $642,270,677 $481,178,893 $315,701,509
Shares Outstanding....................................... 40,790,005 36,432,225 29,335,137 17,988,981
Net Asset Value, Offering and Redemption Price Per
Share.................................................. $ 15.64 $ 17.63 $ 16.40 $ 17.55
============ ============ ============ ============
INVESTMENT SHARES:
Net Assets............................................... $23,132,812 $17,817,102 $9,892,694 $17,935,448
Shares Outstanding....................................... 1,488,538 1,013,042 606,440 1,021,253
Net Asset Value, Offering and Redemption Price Per
Share.................................................. $ 15.54 $ 17.59 $ 16.31 $ 17.56
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
88
<PAGE> 91
The Kent STATEMENTS OF ASSETS AND LIABILITIES
Funds JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHORT TERM INTERMEDIATE
BOND FUND BOND FUND INCOME FUND
----------- ------------ -----------
<S> <C> <C> <C>
ASSETS:
Investments:
Investments at cost.................................................. $162,123,562 $760,059,782 $250,103,466
Net unrealized appreciation (depreciation)........................... 69,181 (2,504,319) 1,165,788
------------ ------------ ------------
Total investments at value........................................... 162,192,743 757,555,463 251,269,254
Receivable for capital shares sold..................................... 166,753 70,218 11,767
Interest and dividends receivable...................................... 2,733,672 12,229,488 4,825,225
Unamortized organizational costs....................................... -- -- 5,928
Prepaid expenses....................................................... 11,310 4,147 10,156
------------ ------------ ------------
Total Assets......................................................... 165,104,478 769,859,316 256,122,330
------------ ------------ ------------
LIABILITIES:
Payable for capital shares redeemed.................................... 125 911 150
Payable to adviser..................................................... 9,018 46,350 16,861
Payable to administrator............................................... 3,296 15,398 5,130
Payable to transfer agent.............................................. -- 2,063 --
Distribution fees (Investment Shares).................................. 310 1,407 676
Payable to custodian................................................... 6,804 12,846 5,961
Audit & legal fees payable............................................. 5,735 17,839 6,094
Accrued expenses and other liabilities................................. 14,198 50,298 16,749
------------ ------------ ------------
Total Liabilities.................................................... 39,486 147,112 51,621
------------ ------------ ------------
NET ASSETS............................................................... $165,064,992 $769,712,204 $256,070,709
============ ============ ============
NET ASSETS CONSIST OF:
Paid-in capital........................................................ $171,955,107 $785,610,286 $256,479,560
Accumulated undistributed (distributions in excess of) net investment
income............................................................... 147,728 21,365 (19,076)
Accumulated net realized losses on investments sold.................... (7,107,024) (13,415,128) (1,555,563)
Net unrealized appreciation (depreciation) of investments.............. 69,181 (2,504,319) 1,165,788
------------ ------------ ------------
TOTAL NET ASSETS......................................................... $165,064,992 $769,712,204 $256,070,709
============ ============ ============
INSTITUTIONAL SHARES:
Net Assets............................................................. $162,237,577 $762,738,129 $252,630,274
Shares Outstanding..................................................... 16,745,050 78,518,354 25,286,331
Net Asset Value, Offering and Redemption Price Per Share............... $ 9.69 $ 9.71 $ 9.99
============ ============ ============
INVESTMENT SHARES:
Net Assets............................................................. $ 2,827,415 $ 6,974,075 $ 3,440,435
Shares Outstanding..................................................... 292,012 716,455 344,533
Net Asset Value, Offering and Redemption Price Per Share............... $ 9.68 $ 9.73 $ 9.99
============ ============ ============
</TABLE>
See Notes to Financial Statements.
89
<PAGE> 92
The Kent STATEMENTS OF ASSETS AND LIABILITIES
Funds JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MICHIGAN
LIMITED TERM INTERMEDIATE TAX-FREE MUNICIPAL
TAX-FREE FUND TAX-FREE FUND INCOME FUND BOND FUND
------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost..................................... $35,430,431 $272,135,843 $115,081,988 $127,181,304
Net unrealized appreciation............................. 472,635 9,942,411 3,468,695 1,774,771
------------ ------------ ------------
Total investments at value.............................. 35,903,066 282,078,254 118,550,683 128,956,075
Receivable for capital shares sold........................ -- -- 7,500 50,000
Interest and dividends receivable......................... 493,349 4,359,342 1,691,672 1,633,500
Deferred organizational expense........................... -- -- 3,492 --
Prepaid expenses.......................................... 11,834 60 8,718 4,339
------------ ------------ ------------
Total Assets............................................ 36,408,249 286,437,656 120,262,065 130,643,914
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased......................... -- -- 2,051,420 4,103,800
Payable to adviser........................................ 1,794 15,702 7,138 6,243
Payable to administrator.................................. 730 5,741 2,372 2,536
Payable to transfer agent................................. -- 665 -- --
Distribution fees (Investment Shares)..................... 53 648 178 337
Payable to custodian...................................... 4,134 7,440 7,225 6,972
Audit & legal fees payable................................ 1,694 7,102 2,929 3,361
Accrued expenses and other liabilities.................... 6,580 32,740 9,701 27,169
------------ ------------ ------------
Total Liabilities....................................... 14,985 70,038 2,080,963 4,150,418
------------ ------------ ------------
NET ASSETS.................................................. $36,393,264 $286,367,618 $118,181,102 $126,493,496
============ ============ ============
NET ASSETS CONSIST OF:
Paid-in capital........................................... $35,768,584 $276,697,247 $114,485,526 $124,726,086
Accumulated undistributed (distributions in excess of) net
investment income....................................... (3,915) 29,100 (8,091) 67,267
Accumulated net realized gains (losses) on investments
sold.................................................... 155,960 (301,140) 234,972 (74,628)
Net unrealized appreciation of investments................ 472,635 9,942,411 3,468,695 1,774,771
------------ ------------ ------------
TOTAL NET ASSETS............................................ $36,393,264 $286,367,618 $118,181,102 $126,493,496
============ ============ ============
INSTITUTIONAL SHARES:
Net Assets................................................ $35,935,738 $283,276,446 $117,299,953 $123,721,538
Shares Outstanding........................................ 3,536,801 27,127,260 11,366,723 12,271,595
Net Asset Value, Offering and Redemption Price Per
Share................................................... $ 10.16 $ 10.44 $ 10.32 $ 10.08
============ ============ ============
INVESTMENT SHARES:
Net Assets................................................ $ 457,526 $ 3,091,172 $ 881,149 $ 2,771,958
Shares Outstanding........................................ 44,872 295,995 85,161 275,200
Net Asset Value, Offering and Redemption Price Per
Share................................................... $ 10.20 $ 10.44 $ 10.35 $ 10.07
============ ============ ============
</TABLE>
See Notes to Financial Statements.
90
<PAGE> 93
The Kent STATEMENTS OF ASSETS AND LIABILITIES
Funds JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
MICHIGAN
GOVERNMENT MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments:
Investments in securities (amortized cost $553,583,903,
$66,660,087 and $197,054,943, respectively).................... $553,583,903 $66,660,087 $197,054,943
Repurchase agreements (cost $36,000,000, $5,000,000 and $0,
respectively).................................................. 36,000,000 5,000,000 --
------------ ----------- ------------
Total investments at value....................................... 589,583,903 71,660,087 197,054,943
Cash............................................................... 5,228 -- --
Interest and dividends receivable.................................. 2,765,177 20,574 1,212,829
Unamortized organizational costs................................... -- 1,355 --
Prepaid expenses................................................... 8,311 7,164 6,314
------------ ----------- ------------
Total Assets..................................................... 592,362,619 71,689,180 198,274,086
------------ ----------- ------------
LIABILITIES:
Dividends payable.................................................. 2,319,941 318,783 563,500
Payable for investments purchased.................................. -- -- 3,521,702
Payable to adviser................................................. 25,660 11,986 8,547
Payable to administrator........................................... 7,220 -- 2,170
Payable to transfer agent.......................................... 7,013 -- --
Payable to custodian............................................... 15,525 203 6,953
Audit & legal fees payable......................................... 12,658 116 4,932
Accrued expenses and other liabilities............................. 23,089 532 20,461
------------ ----------- ------------
Total Liabilities................................................ 2,411,106 331,620 4,128,265
------------ ----------- ------------
NET ASSETS........................................................... $589,951,513 $71,357,560 $194,145,821
============ =========== ============
NET ASSETS CONSIST OF:
Paid-in capital.................................................... $589,939,319 $71,357,560 $194,145,040
Accumulated undistributed net investment income.................... 13,072 -- --
Accumulated net realized gains (losses) on investments sold........ (878) -- 781
------------ ----------- ------------
TOTAL NET ASSETS..................................................... $589,951,513 $71,357,560 $194,145,821
============ =========== ============
INSTITUTIONAL SHARES:
Net Assets......................................................... $589,225,496 $71,356,560 $193,859,198
Shares Outstanding................................................. 589,218,508 71,356,560 193,836,136
Net Asset Value, Offering and Redemption Price Per Share........... $ 1.00 $ 1.00 $ 1.00
============ =========== ============
INVESTMENT SHARES:
Net Assets......................................................... $ 726,017 $ 1,000 $ 286,623
Shares Outstanding................................................. 726,005 1,000 286,585
Net Asset Value, Offering and Redemption Price Per Share........... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
</TABLE>
See Notes to Financial Statements.
91
<PAGE> 94
The Kent STATEMENTS OF OPERATIONS
Funds FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
GROWTH AND SMALL COMPANY INTERNATIONAL INDEX
INCOME FUND GROWTH FUND GROWTH FUND EQUITY FUND
----------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.......................................... $ 8,325,488 $ 3,793,128 $ 5,835,547 $ 2,815,789
Interest........................................... -- 14,495 4,199 17,095
Less: Net foreign taxes withheld................... (16,833) (2,638) (743,011) (3,258)
----------- ----------- ----------- -----------
Total Investment Income.......................... 8,308,655 3,804,985 5,096,735 2,829,626
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees........................... 2,056,814 2,052,384 1,631,407 426,892
Administration fees................................ 587,661 586,395 435,041 284,595
Distribution fees (Investment Shares).............. 22,283 18,883 10,854 15,883
Custodian fees..................................... 6,969 12,420 140,661 8,214
Fund accounting fees............................... 6,752 18,525 20,640 11,935
Legal and audit fees............................... 17,124 16,606 14,653 9,245
Transfer agent fees................................ 32,749 51,496 48,113 13,485
Trustees' fees and expenses........................ 3,612 3,101 3,040 1,398
Registration fees.................................. 6,174 7,513 7,966 3,284
Other expenses..................................... 7,476 7,301 9,113 2,582
----------- ----------- ----------- -----------
Total expenses before waivers.................... 2,747,614 2,774,624 2,321,488 777,513
Less: waivers.................................... (71,179) (71,026) (52,747) (165,884)
----------- ----------- ----------- -----------
Net Expenses..................................... 2,676,435 2,703,598 2,268,741 611,629
----------- ----------- ----------- -----------
NET INVESTMENT INCOME................................ 5,632,220 1,101,387 2,827,994 2,217,997
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains (losses) on investments......... 39,454,850 20,179,305 2,314,024 397,495
Net realized gains (losses) on futures contracts... (836,675) 124,575 -- 1,255,745
Net realized gains (losses) on foreign currency and
foreign currency contracts....................... -- -- (22,796) --
Net change in unrealized appreciation/depreciation
of investments, foreign currency, foreign
currency contracts and futures contracts......... 38,334,144 69,594,146 46,415,751 49,962,572
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS............................ 76,952,319 89,898,026 48,706,979 51,615,812
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS......................................... $82,584,539 $90,999,413 $51,534,973 $53,833,809
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
92
<PAGE> 95
The Kent STATEMENTS OF OPERATIONS
Funds FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SHORT TERM INTERMEDIATE
BOND FUND BOND FUND INCOME FUND
----------- ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.............................................................. $ 6,252,559 $25,481,706 $9,130,571
Dividends............................................................. 199,657 501,448 123,421
----------- ----------- ----------
Total Investment Income............................................. 6,452,216 25,983,154 9,253,992
----------- ----------- ----------
EXPENSES:
Investment advisory fees.............................................. 467,422 2,068,653 730,293
Administration fees................................................... 186,968 752,238 243,431
Distribution fees (Investment Shares)................................. 1,396 8,740 3,560
Custodian fees........................................................ 4,320 4,912 2,475
Fund accounting fees.................................................. 2,936 6,110 3,654
Legal and audit fees.................................................. 5,809 19,636 7,327
Transfer agent fees................................................... 11,569 30,535 22,258
Trustees' fees and expenses........................................... 907 4,436 1,226
Amortization of organization costs.................................... -- -- 96
Registration fees..................................................... 6,441 9,661 5,463
Other expenses........................................................ 653 12,289 2,793
----------- ----------- ----------
Total Expenses before waivers....................................... 688,421 2,917,210 1,022,576
Less: Waivers....................................................... (23,746) (91,490) (29,576)
----------- ----------- ----------
Net Expenses........................................................ 664,675 2,825,720 993,000
----------- ----------- ----------
NET INVESTMENT INCOME................................................... 5,787,541 23,157,434 8,260,992
----------- ----------- ----------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Net realized gains (losses) on investments sold....................... (1,911,548) (6,374,325) (1,548,028)
Net change in unrealized appreciation/depreciation of investments..... 920,988 2,943,454 (954,050)
----------- ----------- ----------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS........................................................ (990,560) (3,430,871) (2,502,078)
----------- ----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS............................................. $ 4,796,981 $19,726,563 $5,758,914
=========== =========== ==========
</TABLE>
See Notes to Financial Statements.
93
<PAGE> 96
The Kent STATEMENTS OF OPERATIONS
Funds FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MICHIGAN
LIMITED TERM INTERMEDIATE TAX-FREE MUNICIPAL
TAX-FREE FUND TAX-FREE FUND INCOME FUND BOND FUND
------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest............................................ $ 848,877 $ 7,151,339 $2,951,460 $ 3,016,273
Dividends........................................... 14,016 72,912 36,812 43,572
----------- ----------- ---------- -----------
Total Investment Income........................... 862,893 7,224,251 2,988,272 3,059,845
----------- ----------- ---------- -----------
EXPENSES:
Investment advisory fees............................ 83,530 705,220 312,503 290,143
Administration fees................................. 37,124 282,088 113,637 128,952
Distribution fees (Investment Shares)............... 241 4,111 1,094 3,056
Custodian fees...................................... 1,668 3,447 2,808 3,174
Fund accounting fees................................ 2,472 8,702 5,232 8,821
Legal and audit fees................................ 2,729 9,616 4,678 4,665
Transfer agent fees................................. 9,636 22,155 14,672 15,798
Trustees' fees and expenses......................... 36 1,386 21 615
Amortization of organization costs.................. -- -- 724 --
Registration fees................................... 1,162 5,698 3,118 27
Other expenses...................................... 456 4,813 2,430 2,107
----------- ----------- ---------- -----------
Total expenses before waivers..................... 139,054 1,047,236 460,917 457,358
Less: waivers..................................... (4,612) (34,287) (13,797) (16,903)
----------- ----------- ---------- -----------
Net Expenses...................................... 134,442 1,012,949 447,120 440,455
----------- ----------- ---------- -----------
NET INVESTMENT INCOME................................. 728,451 6,211,302 2,541,152 2,619,390
----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAINS (
LOSSES) ON INVESTMENTS:
Net realized gains (losses) on investments sold..... 157,162 303,028 240,184 32,626
Net change in unrealized appreciation/depreciation
of investments.................................... (123,986) 131,875 390,150 35,087
----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS...................................... 33,176 434,903 630,334 67,713
----------- ----------- ---------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........................... $ 761,627 $ 6,646,205 $3,171,486 $ 2,687,103
=========== =========== ========== ===========
</TABLE>
See Notes to Financial Statements.
94
<PAGE> 97
The Kent STATEMENTS OF OPERATIONS
Funds FOR THE SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MICHIGAN
GOVERNMENT MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND(1) FUND
---------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest........................................................ $14,030,837 $ 315,075 $ 3,255,361
Dividends....................................................... 444,001 19,754 77,267
----------- ----------- -----------
Total Investment Income....................................... 14,474,838 334,829 3,332,628
----------- ----------- -----------
EXPENSES:
Investment advisory fees........................................ 1,042,435 23,972 353,066
Administration fees............................................. 521,225 11,986 176,556
Custodian fees.................................................. 8,631 203 3,360
Fund accounting fees............................................ 1,338 87 1,839
Legal and audit fees............................................ 14,794 116 5,294
Transfer agent fees............................................. 28,195 -- 16,385
Trustees' fees and expenses..................................... 2,847 -- 864
Amortization of organization costs.............................. -- 145 --
Registration fees............................................... 10,129 551 2,494
Other expenses.................................................. 7,714 2,958 743
----------- ----------- -----------
Total Expenses before waivers................................. 1,637,308 40,018 560,601
Less: Waivers................................................. (310,622) (23,972) (106,618)
----------- ----------- -----------
Net Expenses.................................................. 1,326,686 16,046 453,983
----------- ----------- -----------
NET INVESTMENT INCOME............................................. 13,148,152 318,783 2,878,645
----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................................... $13,148,152 $ 318,783 $ 2,878,645
=========== =========== ===========
</TABLE>
- ---------------
(1) The Fund commenced operations June 2, 1997.
See Notes to Financial Statements.
95
<PAGE> 98
The
Kent Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GROWTH AND INCOME SMALL COMPANY GROWTH
--------------------------------- ----------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
--------------------------------- ----------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD................ $515,920,253 $412,450,592 $558,516,596 $ 461,027,443
------------ ------------ ------------ -------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income.......................... 5,632,220 9,952,979 1,101,387 3,966,391
Net realized gains (losses) on investments..... 39,454,850 39,233,025 20,179,305 32,298,684
Net realized gains (losses) on futures
contracts.................................... (836,675) 2,415,000 124,575 3,527,985
Net change in unrealized
appreciation/depreciation of investments,
foreign currency and futures contracts....... 38,334,144 30,902,403 69,594,146 53,935,218
------------ ------------ ------------ -------------
Net increase in net assets resulting from
operations................................... 82,584,539 82,503,407 90,999,413 93,728,278
------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
INSTITUTIONAL:
Net investment income.......................... (5,647,185) (9,772,575) (1,329,493) (3,891,501)
Net realized gains............................. (5,522,253) (49,510,778) (13,685,752) (24,783,337)
------------ ------------ ------------ -------------
Total Distributions -- Institutional
Shares..................................... (11,169,438) (59,283,353) (15,015,245) (28,674,838)
------------ ------------ ------------ -------------
INVESTMENT:
Net investment income.......................... (159,663) (246,918) (19,693) (70,033)
In excess of net investment income............. -- (18,400) -- (7,537)
Net realized gains............................. (163,486) (1,458,817) (352,902) (629,504)
------------ ------------ ------------ -------------
Total Distributions -- Investment Shares..... (323,149) (1,724,135) (372,595) (707,074)
------------ ------------ ------------ -------------
Total Distributions to Shareholders.......... (11,492,587) (61,007,488) (15,387,840) (29,381,912)
------------ ------------ ------------ -------------
FUND SHARE TRANSACTIONS
Shares issued.................................. 137,919,703 153,847,838 93,471,895 135,473,783
Reinvestment of distributions.................. 5,201,511 27,411,595 7,617,151 14,891,206
Shares redeemed................................ (68,914,939) (99,285,691) (75,129,436) (117,222,202)
------------ ------------ ------------ -------------
TOTAL NET INCREASE (DECREASE) FROM SHARE
TRANSACTIONS................................... 74,206,275 81,973,742 25,959,610 33,142,787
------------ ------------ ------------ -------------
Net increase (decrease) in net assets.......... 145,298,227 103,469,661 101,571,183 97,489,153
------------ ------------ ------------ -------------
NET ASSETS AT END OF PERIOD...................... $661,218,480 $515,920,253 $660,087,779 $ 558,516,596
============ ============ ============ =============
</TABLE>
See Notes to Financial Statements.
96
<PAGE> 99
The Kent
Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH FUND INDEX EQUITY FUND
--------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
--------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD................. $396,597,865 $294,093,096 $253,362,463 $190,488,589
------------ ------------ ------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income........................... 2,827,994 3,169,685 2,217,997 4,133,408
Net realized gains (losses) on investments...... 2,314,024 3,376,665 397,495 1,057,376
Net realized gains (losses) on futures
contracts..................................... -- -- 1,255,745 1,498,615
Net realized gains (losses) on foreign currency
and foreign currency contracts................ (22,796) (45,781) -- --
Net change in unrealized
appreciation/depreciation of investments,
foreign currency and futures contracts........ 46,415,751 11,892,070 49,962,572 38,019,000
------------ ------------ ------------ -----------
Net increase in net assets resulting from
operations.................................... 51,534,973 18,392,639 53,833,809 44,708,399
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
INSTITUTIONAL:
Net investment income........................... -- (2,589,632) (2,087,958) (3,996,731)
In excess of net investment income.............. -- (504,939) -- --
Net realized gains.............................. -- (3,325,497) (51,597) (4,383,680)
In excess of net realized gains................. -- (161,046) -- (668,004)
------------ ------------ ------------ -----------
Total Distributions -- Institutional Shares... -- (6,581,114) (2,139,555) (9,048,415)
------------ ------------ ------------ -----------
INVESTMENT:
Net investment income........................... (15) (49,833) (84,106) (137,968)
In excess of net investment income.............. -- -- -- (5,705)
Net realized gains.............................. -- (82,522) (2,166) (199,306)
------------ ------------ ------------ -----------
Total Distributions -- Investment Shares...... (15) (132,355) (86,272) (342,979)
------------ ------------ ------------ -----------
Total Distributions to Shareholders........... (15) (6,713,469) (2,225,827) (9,391,394)
------------ ------------ ------------ -----------
FUND SHARE TRANSACTIONS
Shares issued................................... 95,289,933 139,625,382 61,469,887 72,390,118
Reinvestment of distributions................... -- 3,275,693 1,571,048 6,280,152
Shares redeemed................................. (52,351,169) (52,075,476) (34,374,423) (51,113,401)
------------ ------------ ------------ ------------
TOTAL NET INCREASE (DECREASE) FROM SHARE
TRANSACTIONS.................................... 42,938,764 90,825,599 28,666,512 27,556,869
------------ ------------ ------------ ------------
Net increase (decrease) in net assets........... 94,473,722 102,504,769 80,274,494 62,873,874
------------ ------------ ------------ ------------
NET ASSETS AT END OF PERIOD....................... $491,071,587 $396,597,865 $333,636,957 $253,362,463
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
97
<PAGE> 100
The Kent
Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SHORT TERM BOND FUND INTERMEDIATE BOND FUND INCOME FUND
-------------------------------- -------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
----------------------------- ----------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF
PERIOD.................. $237,096,910 $ 312,313,894 $ 776,722,838 $ 861,662,351 $242,781,715 $128,017,408
------------ ------------- ------------- ------------- ------------ ------------
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS:
Net investment income... 5,787,541 17,428,126 23,157,434 50,745,832 8,260,992 13,248,046
Net realized gains
(losses) on
investments sold...... (1,911,548) (937,245) (6,374,325) (7,025,161) (1,548,028) 2,157,485
Net change in unrealized
appreciation/depreciation
of investments........ 920,988 (5,032,357) 2,943,454 (20,975,605) (954,050) (7,015,717)
------------ ------------- ------------- ------------- ------------ ------------
Net increase in net
assets resulting from
operations............ 4,796,981 11,458,524 19,726,563 22,745,066 5,758,914 8,389,814
------------ ------------- ------------- ------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
INSTITUTIONAL:
Net investment income... (5,689,390) (17,416,111) (23,061,650) (51,337,391) (8,234,603) (13,204,524)
In excess of net
investment income..... -- -- -- (2,304,413) -- (1,956,281)
Net realized gains on
investments........... -- -- -- -- (1,429,341) (717,482)
------------ ------------- ------------- ------------- ------------ ------------
Total Distributions
-- Institutional
Shares.............. (5,689,390) (17,416,111) (23,061,650) (53,641,804) (9,663,944) (15,878,287)
------------ ------------- ------------- ------------- ------------ ------------
INVESTMENT:
Net investment income... (59,421) (85,476) (206,253) (422,949) (95,154) (143,574)
In excess of net
investment income..... -- (9,055) -- (38,057) -- (20,998)
Net realized gains on
investments........... -- -- -- -- (16,130) (2,063)
------------ ------------- ------------- ------------- ------------ ------------
Total Distributions
-- Investment
Shares.............. (59,421) (94,531) (206,253) (461,006) (111,284) (166,635)
------------ ------------- ------------- ------------- ------------ ------------
Total Distributions to
Shareholders........ (5,748,811) (17,510,642) (23,267,903) (54,102,810) (9,775,228) (16,044,922)
------------ ------------- ------------- ------------- ------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares
issued................ 22,278,832 71,401,214 91,815,302 200,094,674 39,131,694 155,448,604
Reinvestment of
distributions......... 3,865,385 11,174,796 12,609,849 29,128,985 1,835,798 2,778,971
Cost of shares
redeemed.............. (97,224,305) (151,740,876) (107,894,445) (282,805,428) (23,662,184) (35,808,160)
------------ ------------- ------------- ------------- ------------ ------------
TOTAL NET INCREASE
(DECREASE) FROM SHARE
TRANSACTIONS............ (71,080,088) (69,164,866) (3,469,294) (53,581,769) 17,305,308 122,419,415
------------ ------------- ------------- ------------- ------------ ------------
Net increase (decrease)
in net assets......... (72,031,918) (75,216,984) (7,010,634) (84,939,513) 13,288,994 114,764,307
------------ ------------- ------------- ------------- ------------ ------------
NET ASSETS AT END OF
PERIOD.................. $165,064,992 $ 237,096,910 $ 769,712,204 $ 776,722,838 $256,070,709 $242,781,715
============ ============= ============= ============= ============ ============
</TABLE>
See Notes to Financial Statements.
98
<PAGE> 101
The Kent
Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LIMITED TERM TAX-FREE FUND INTERMEDIATE TAX-FREE FUND
--------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
--------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD................. $ 41,577,319 $55,401,190 $289,042,905 $287,540,348
----------- ----------- ------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income........................... 728,451 1,861,546 6,211,302 12,643,123
Net realized gains (losses) on investments
sold.......................................... 157,162 82,971 303,028 1,079,288
Net change in unrealized
appreciation/depreciation of investments...... (123,986) (270,758) 131,875 (3,796,119)
----------- ----------- ------------ ------------
Net increase in net assets resulting from
operations.................................... 761,627 1,673,759 6,646,205 9,926,292
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
INSTITUTIONAL:
Net investment income........................... (735,604) (1,883,853) (6,159,686) (12,639,182)
In excess of net investment income.............. -- (22,303) -- (101,729)
Net realized gains on investments............... (17,752) (45,972) -- --
----------- ----------- ------------ ------------
Total Distributions -- Institutional Shares... (753,356) (1,952,128) (6,159,686) (12,740,911)
----------- ----------- ------------ ------------
INVESTMENT:
Net investment income........................... (3,773) (2,384) (67,264) (137,261)
In excess of net investment income.............. -- (206) -- (7,740)
Net realized gains on investments............... (51) (87) -- --
----------- ----------- ------------ ------------
Total Distributions -- Investment Shares...... (3,824) (2,677) (67,264) (145,001)
----------- ----------- ------------ ------------
Total Distributions to Shareholders........... (757,180) (1,954,805) (6,226,950) (12,885,912)
----------- ----------- ------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares issued..................... 4,496,874 8,696,402 22,650,793 63,415,595
Reinvestment of distributions................... 12,901 18,971 88,475 120,131
Cost of shares redeemed......................... (9,698,277) (22,258,198) (25,833,810) (59,073,549)
----------- ----------- ------------ ------------
TOTAL NET INCREASE (DECREASE) FROM SHARE
TRANSACTIONS.................................... (5,188,502) (13,542,825) (3,094,542) 4,462,177
----------- ----------- ------------ ------------
Net increase (decrease) in net assets........... (5,184,055) (13,823,871) (2,675,287) 1,502,557
----------- ----------- ------------ ------------
NET ASSETS AT END OF PERIOD....................... $ 36,393,264 $41,577,319 $286,367,618 $289,042,905
=========== =========== ============ ============
</TABLE>
See Notes to Financial Statements.
99
<PAGE> 102
The Kent
Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TAX-FREE INCOME FUND MICHIGAN MUNICIPAL BOND FUND
--------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
--------------------------------- ---------------------------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD................. $110,883,746 $122,384,290 $155,044,170 $187,365,585
------------ ------------ ------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income........................... 2,541,152 4,737,111 2,619,390 6,577,753
Net realized gains (losses) on investments
sold.......................................... 240,184 1,968,582 32,626 86,964
Net realized gains (losses) on futures
contracts..................................... -- (363,313) -- --
Net change in unrealized
appreciation/depreciation of investments...... 390,150 (1,887,284) 35,087 (795,155)
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations.................................... 3,171,486 4,455,096 2,687,103 5,869,562
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
INSTITUTIONAL:
Net investment income........................... (2,539,420) (4,725,879) (2,526,040) (6,489,955)
In excess of net investment income.............. -- -- -- --
Net realized gains on investments............... (55,861) (1,679,825) -- --
------------ ------------ ------------ ------------
Total Distributions -- Institutional Shares... (2,595,281) (6,405,704) (2,526,040) (6,489,955)
------------ ------------ ------------ ------------
INVESTMENT:
Net investment income........................... (18,228) (32,116) (48,520) (77,375)
In excess of net investment income.............. -- -- -- (3,313)
Net realized gains on investments............... (461) (9,292) -- --
In excess of realized gains on investments...... -- (3,147) -- --
------------ ------------ ------------ ------------
Total Distributions -- Investment Shares...... (18,689) (44,555) (48,520) (80,688)
------------ ------------ ------------ ------------
Total Distributions to Shareholders........... (2,613,970) (6,450,259) (2,574,560) (6,570,643)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS
Proceeds from shares issued..................... 18,345,274 35,182,548 18,767,126 28,108,486
Reinvestment of distributions................... 44,613 68,391 50,053 74,582
Cost of shares redeemed......................... (11,650,047) (44,756,320) (47,480,396) (59,803,402)
------------ ------------ ------------ ------------
TOTAL NET INCREASE (DECREASE) FROM SHARE
TRANSACTIONS.................................... 6,739,840 (9,505,381) (28,663,217) (31,620,334)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets........... 7,297,356 (11,500,544) (28,550,674) (32,321,415)
------------ ------------ ------------ ------------
NET ASSETS AT END OF PERIOD....................... $118,181,102 $110,883,746 $126,493,496 $155,044,170
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
100
<PAGE> 103
The Kent
Funds STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
FUND MICHIGAN MUNICIPAL
MONEY MARKET FUND --------------- MONEY MARKET FUND
-------------------------------- PERIOD ENDED --------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30, SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, 1997(1) JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) (UNAUDITED) 1996
-------------------------------- --------------- --------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD..... $ 484,722,709 $ 426,042,320 $ -- $156,205,940 $ 146,818,028
------------- ------------- ------------ ------------ -------------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment income............... 13,148,152 21,617,630 318,783 2,878,645 4,998,349
Net realized gains (losses) on
investments sold.................. -- (27) -- -- 251
------------- ------------- ------------ ------------ -------------
Net increase in net assets resulting
from operations................... 13,148,152 21,617,603 318,783 2,878,645 4,998,600
------------- ------------- ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
INSTITUTIONAL:
Net investment income............... (13,127,987) (21,564,398) (318,779) (2,870,992) (4,966,358)
------------- ------------- ------------ ------------ -------------
INVESTMENT:
Net investment income............... (20,165) (53,232) (4) (7,653) (31,991)
------------- ------------- ------------ ------------ -------------
Total Distributions to
Shareholders.................... (13,148,152) (21,617,630) (318,783) (2,878,645) (4,998,349)
------------- ------------- ------------ ------------ -------------
FUND SHARE TRANSACTIONS
Proceeds from shares issued......... 589,245,781 845,431,796 95,704,807 129,436,901 258,441,230
Reinvestment of distributions....... 790,456 587,156 -- 61,138 28,579
Cost of shares redeemed............. (484,807,433) (787,338,536) (24,347,247) (91,558,158) (249,082,148)
------------- ------------- ------------ ------------ -------------
TOTAL NET INCREASE FROM SHARE
TRANSACTIONS........................ 105,228,804 58,680,416 71,357,560 37,939,881 9,387,661
------------- ------------- ------------ ------------ -------------
Net increase in net assets.......... 105,228,804 58,680,389 71,357,560 37,939,881 9,387,912
------------- ------------- ------------ ------------ -------------
NET ASSETS AT END OF PERIOD........... $ 589,951,513 $ 484,722,709 $ 71,357,560 $194,145,821 $ 156,205,940
============= ============= ============ ============ =============
</TABLE>
- ---------------
(1) The Fund commenced operations June 2, 1997.
See Notes to Financial Statements.
101
<PAGE> 104
The Kent
Funds NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
The Kent Funds (the "Trust") was organized as a Massachusetts business trust
on May 9, 1986 and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management investment company. As of
the date of this report, the Trust offered fourteen managed investment
portfolios. The accompanying financial statements and financial highlights are
those of The Kent Growth and Income Fund, The Kent Small Company Growth Fund,
The Kent International Growth Fund, The Kent Index Equity Fund, The Kent Short
Term Bond Fund, The Kent Intermediate Bond Fund, The Kent Income Fund, The Kent
Limited Term Tax-Free Fund, The Kent Intermediate Tax-Free Fund, The Kent
Tax-Free Income Fund, The Kent Michigan Municipal Bond Fund, The Kent Money
Market Fund, The Kent Government Money Market Fund and The Kent Michigan
Municipal Money Market Fund (individually, a "Portfolio" and collectively, the
"Portfolios").
The Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest without par value and allows for the
creation of one or more classes of shares within each series.
The Trust may issue more than one series of shares investing in portfolios of
securities. The Trust currently issues fourteen series of shares with two
separate classes in each series: Investment Shares and Institutional Shares.
Each share in each series or class has identical voting, dividend, liquidation
and other rights, except in matters affecting only a particular series or class,
in which case only shares of the affected series or class are entitled to vote.
Class specific expenses, if any, are currently limited to expenses directly
attributable to the Investment Shares under the Distribution Plan, shareholder
services fees and certain printing and postage expenses incurred as they relate
to a particular class of shares.
The investment objectives of the Portfolios are as follows:
Growth and Income Fund -- To seek long-term capital growth with current income
as a secondary goal.
Small Company Growth Fund -- To seek long-term capital appreciation by
investing in equity securities of small companies.
International Growth Fund -- To seek long-term growth of capital and
additional diversification for U.S. investors by investing in a varied portfolio
of foreign equity securities.
Index Equity Fund -- To seek investment results which mirror the capital
performance and dividend income of the Standard & Poor's 500 Composite Stock
Price Index.
Short Term Bond Fund -- To seek current income by investing primarily in a
limited range of investment quality fixed income securities.
Intermediate Bond Fund -- To seek current income by investing primarily in a
broad range of investment quality debt securities.
Income Fund -- To seek a high level of current income by investing in a broad
range of investment quality debt securities.
Limited Term Tax-Free Fund -- To seek current income, exempt from federal
income tax, while preserving capital.
Intermediate Tax-Free Fund -- To seek current income, exempt from federal
income tax, while preserving capital.
Tax-Free Income Fund -- To seek to provide as high a level of interest income
exempt from federal income tax as is consistent with prudent investing, while
preserving capital.
Michigan Municipal Bond Fund -- To seek current income, exempt from federal
income and State of Michigan personal income taxes, while preserving capital.
Money Market Fund -- To seek current income from short-term securities while
preserving capital and maintaining liquidity.
Government Money Market Fund -- To seek current income from short-term United
States Government securities while preserving capital and maintaining liquidity.
Michigan Municipal Money Market Fund -- To seek current income from short-term
securities that is exempt from federal and State of Michigan personal income
taxes, while preserving capital and maintaining liquidity.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Portfolios in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires manage-
102
<PAGE> 105
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
ment to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses for the period. Actual amounts could differ from
those estimates.
PORTFOLIO VALUATION: Securities in the Money Market Fund, Government Money
Market Fund and Michigan Municipal Money Market Fund (the "money market funds")
are valued utilizing the amortized cost valuation method permitted in accordance
with Rule 2a-7 under the 1940 Act, which approximates market value. This method
involves valuing a portfolio security initially at its cost on the date of
purchase and thereafter assuming a constant amortization to maturity of the
difference between the principal amount due at maturity and initial cost. In
addition, the money market funds may not (a) purchase any instrument with a
remaining maturity greater than thirteen months unless such instrument is
subject to a demand feature, or (b) maintain a dollar-weighted average maturity
which exceeds 90 days.
In the Limited Term Tax-Free Fund, Intermediate Tax-Free Fund, Tax-Free Income
Fund, Michigan Municipal Bond Fund, Short Term Bond Fund, Intermediate Bond
Fund, and Income Fund, corporate debt securities, municipal securities and debt
securities of the U.S. government and its agencies (other than short-term
investments maturing in 60 days or less) are valued on the basis of valuations
provided by dealers or by an independent pricing service approved by the Board
of Trustees. Short-term obligations that mature in 60 days or less are valued at
amortized cost, which constitutes fair value and approximates market value. All
other securities and other assets are appraised at their fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees.
The Growth and Income Fund, Small Company Growth Fund, International Growth
Fund and Index Equity Fund value listed securities at the last sales price on
the principal exchange where such securities are traded. Listed securities for
which last sales prices are not avail-able are valued at the last bid price.
Unlisted securities are valued at the mean of the current bid and asked prices
in the principal market where such securities trade. Short-term obligations that
mature in 60 days or less are valued at amortized cost, which constitutes fair
value and approximates market value. All other securities and other assets are
appraised at their fair value as determined in good faith under consistently
applied procedures established by and under the general supervision of the Board
of Trustees.
REPURCHASE AGREEMENTS: The Trust's custodian and other banks acting in a
sub-custodian capacity, take possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued daily
on a mark-to-market basis to determine that the value, including accrued
interest, exceeds the repurchase price. In the event of the seller's default of
the obligation to repurchase, the Portfolios have the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. Under
certain circumstances, in the event of the default or bankruptcy by the other
party to the agreement, realization and/or retention of the collateral may be
subject to legal proceedings.
FOREIGN CURRENCY TRANSLATION: Investments and other assets and liabilities
initially expressed in foreign currencies are converted each business day into
U.S. dollars based upon current exchange rates. Realized gains and losses on
foreign investments and foreign income and expenses are converted into U.S.
dollars based upon exchange rates prevailing on the respective dates of such
transactions. That portion of unrealized gains or losses on investments due to
fluctuations in foreign currency exchange rates is not separately disclosed.
Foreign currency-denominated receivables and payables are "marked-to-market"
using the current exchange rate. The fluctuation between the original exchange
rate and the current exchange rate is recorded as unrealized currency gain or
loss. Upon receipt of payment, a Portfolio realizes a gain or loss on foreign
currency amounting to the difference between the original value and the ending
value of the receivable or payable. Foreign currency gains and losses related to
dividend receivables are reported as part of dividend income.
FUTURES CONTRACTS: The Growth and Income Fund, Small Company Growth Fund,
International Growth Fund, Index Equity Fund, Limited Term Tax-Free Fund,
Intermediate Tax-Free Fund, Tax-Free Income Fund and Michigan Municipal Bond
Fund may invest in futures contracts. This investment involves, to varying
degrees, elements of market risk and risks in excess of the amount recognized in
the Statement of Assets and Liabilities. The face or contract amounts reflect
the extent of the involvement the Portfolios have in the particular classes of
instruments. Risks include an imperfect correlation between the movements in the
price of the
103
<PAGE> 106
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
instruments and the price of the underlying securities and interest rates. Risks
may also arise if there is an illiquid secondary market for the instruments or
due to the inability of counterparties to perform under the terms of the
contract.
Cash or securities are deposited with brokers in order to maintain a position.
Subsequent payments made or received daily by the Portfolio based on the change
in the market value of the position are recorded as an unrealized gain or loss
until the contract is closed out, at which time the gain or loss is recognized.
Futures contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are traded.
To the extent that a Portfolio enters into futures contracts on an index or
group of securities, the Portfolio exposes itself to an indeterminate liability
and will be required to pay or receive a sum of money measured by the change in
the market value of the index or group of securities. Upon entering into a
futures contract, the Portfolio is required to deposit either cash or securities
in an amount ("initial margin") equal to a certain percentage of the contract
value with a broker. Subsequent payments ("variation margin") equal to changes
in the daily settlement price or last sale on the exchanges where they trade are
paid or received each day and are recorded as a gain or loss on futures
contracts.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The International Growth Fund may
enter into forward foreign currency exchange contracts. The purpose of these
contracts is to hedge against fluctuation in the value of the underlying
currency of certain portfolio investments. A forward foreign currency exchange
contract is an agreement to purchase or sell a specified currency at a specified
price on a future date. Risks associated with the contract include changes in
the value of the foreign currency relative to the U.S. dollar and/or the
counterparty's potential inability to perform under the contract.
The forward foreign currency exchange contracts are valued daily using the
current exchange rate of the underlying currency with any fluctuations recorded
as unrealized gains or losses. Realized gains or losses are recognized when
entering a closing or offsetting forward foreign currency exchange contract with
the same settlement date and broker.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Net realized gains and losses on investments sold
and on foreign currency transactions are recorded on the basis of identified
cost. Interest income, including accretion of discounts, is recorded on the
accrual basis. Dividend income is recorded on the ex-dividend date.
The International Growth Fund, upon the purchase or sale of a security
denominated in a foreign currency, may enter into forward foreign currency
exchange contracts for the purchase or sale, for a fixed amount of U.S. dollars,
of the amount of foreign currency involved in the underlying security
transaction to hedge the portfolio against currency fluctuations during the
settlement period. In such cases, the Portfolio has not realized currency gains
or losses between the trade and settlement dates on these security transactions.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Money Market Fund, Government
Money Market Fund and Michigan Municipal Money Market Fund declare dividends
daily from net investment income and pay such dividends monthly. The other
Portfolios declare and distribute dividends from net investment income monthly,
with the exception of the International Growth Fund which declares and pays
dividends annually. Net investment income for this purpose consists of interest
accrued, discount earned (including both original issue and market discount),
dividends earned less amortization of any market premium and accrued expenses.
Net realized capital gains, if any, are distributed at least annually.
The amounts of income and capital gains to be distributed are determined in
accordance with income tax regulations. Such amounts may vary from income and
capital gains recognized in accordance with generally accepted accounting
principles.
FEDERAL INCOME TAXES: For federal income tax purposes, each Portfolio is
treated as a separate entity for the purpose of determining its qualification as
a regulated investment company under the Internal Revenue Code (the "Code"). It
is the policy of each Portfolio to meet the requirements of the Code applicable
to regulated investment companies, including the requirement that it distribute
substantially all of its taxable income to shareholders. Therefore, no federal
income tax provision is required. Withholding taxes on foreign dividends have
been paid or provided for in accordance with the applicable country's tax rules
and rates.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax
regulations
104
<PAGE> 107
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
which may differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the composition of net assets based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions to shareholders which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income or distributions in
excess of net realized gains. To the extent they exceed net investment income
and net realized gains for tax purposes, they are reported as distributions of
capital.
At December 31, 1996, the following Portfolios had the following capital loss
carryforwards which will expire in the years indicated:
<TABLE>
<CAPTION>
FUND AMOUNT YEAR
- ---- ---------- ----
<S> <C> <C>
Short Term Bond Fund.............. $ 656,100 2001
3,015,994 2002
467,881 2003
438,260 2004
----------
$4,578,235
==========
Intermediate Bond Fund............ $6,353,600 2004
Intermediate Tax-Free Fund........ 604,167 2003
Michigan Municipal Bond Fund...... 107,254 2003
Money Market Fund................. 433 1999
224 2002
194 2003
27 2004
----------
$ 878
==========
</TABLE>
EXPENSES: Expenses directly attributable to a Portfolio are charged to the
Portfolio, while expenses which are attributable to more than one series of the
Trust are allocated among the respective series based upon relative net assets
or another appropriate basis. In addition, investors in Investment Shares will
pay the expenses directly attributable to the Investment Shares as a class, and
investors in Institutional Shares will pay the expenses directly attributable to
the Institutional Shares as a class.
ORGANIZATIONAL COSTS: The Government Money Market Fund, Tax-Free Income Fund
and Income Fund bear all costs in connection with their organization. All such
costs are amortized using the straight-line method over a period of five years
beginning with the respective Portfolio's commencement of operations. In the
event that any of the initial shares purchased by the Portfolio's sponsors are
redeemed during such period by any holder thereof, the Portfolio will be
reimbursed by such holder for any unamortized organization costs in the same
proportion as the number of initial shares being redeemed bears to the number of
initial shares outstanding at the time of redemption.
3. RELATED PARTY TRANSACTIONS
Old Kent Bank ("Investment Adviser") serves as the investment adviser to the
Trust. The Investment Adviser is a member of Michigan State Banking Association
and the principal subsidiary of Old Kent Financial Corporation. The Investment
Adviser is entitled to receive a fee, computed daily and paid monthly, based on
each Fund's average daily net assets at the following annual rates:
<TABLE>
<S> <C>
Growth and Income Fund........................ 0.70%
Small Company Growth Fund..................... 0.70%
International Growth Fund..................... 0.75%
Index Equity Fund............................. 0.30%
Short Term Bond Fund.......................... 0.50%
Intermediate Bond Fund........................ 0.55%
Income Fund................................... 0.60%
Limited Term Tax-Free Fund.................... 0.45%
Intermediate Tax-Free Fund.................... 0.50%
Tax-Free Income Fund.......................... 0.55%
Michigan Municipal Bond Fund.................. 0.45%
Money Market Fund............................. 0.40%
Government Money Market Fund.................. 0.40%
Michigan Municipal Money Market Fund.......... 0.40%
</TABLE>
For the six months ended June 30, 1997, the adviser waived $11,986 fees for
the Government Money Market Fund.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS")
serves the Portfolios as Administrator and Distributor. BISYS Fund Services,
Inc. serves the Portfolios as Fund Accountant and Transfer Agent. BISYS and
BISYS Fund Services, Inc. are both wholly owned subsidiaries of The BISYS Group,
Inc. The Administrator is entitled to receive a fee computed daily and paid
monthly, at the annual rate of 0.185% of the average daily net assets of the
Trust up to $5 billion; 0.165% of the average daily net assets of the Trust in
excess of $5 billion up to $7.5 billion; and 0.135% of the average daily net
assets of the Trust in excess of $7.5 bil-
105
<PAGE> 108
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
lion. Fund accounting fees are computed daily and paid
monthly at the annual rate of 0.015% of the average daily net assets of the
Trust and are included as part of the fees paid to the Administrator.
Gross administration fees and fees waived for the six months ended June 30,
1997 were as follows for the Portfolios indicated:
<TABLE>
<CAPTION>
FUNDS GROSS FEES FEES WAIVED
- ------------------------------- ---------- -----------
<S> <C> <C>
Growth and Income Fund......... $587,661 $ 71,179
Small Company Growth Fund...... 586,395 71,026
International Growth Fund...... 435,041 57,747
Index Equity Fund.............. 284,595 165,884
Short Term Bond Fund........... 186,968 22,816
Intermediate Bond Fund......... 752,238 91,490
Income Fund.................... 243,431 24,576
Limited Term Tax-Free Fund..... 37,124 4,516
Intermediate Tax-Free Fund..... 282,088 34,287
Tax-Free Income Fund........... 113,637 13,797
Michigan Municipal Bond Fund... 128,952 15,681
Money Market Fund.............. 521,225 310,622
Government Money Market Fund... 11,986 11,986
Michigan Municipal Money Market
Fund......................... 176,556 106,618
</TABLE>
Transfer agent fees for each Portfolio for the six months ended June 30, 1997
are as follows:
<TABLE>
<CAPTION>
FUNDS TRANSFER AGENT FEES
- -------------------------------------- -------------------
<S> <C>
Growth and Income Fund................ $32,749
Small Company Growth Fund............. 51,496
International Growth Fund............. 48,113
Index Equity Fund..................... 3,485
Short Term Bond Fund.................. 11,569
Intermediate Bond Fund................ 30,535
Income Fund........................... 22,258
Limited Term Tax-Free Fund............ 9,636
Intermediate Tax-Free Fund............ 22,155
Tax-Free Income Fund.................. 14,672
Michigan Municipal Bond Fund.......... 15,798
Money Market Fund..................... 28,195
Government Money Market Fund.......... --
Michigan Municipal Money Market
Fund................................ 16,385
</TABLE>
Certain officers and a trustee of the Trust are affiliated with BISYS. Such
officers and Trustee receive no direct payments or fees from the Portfolios for
serving as officers.
The Trust has adopted a distribution plan (the "Plan") on behalf of the
Investment Shares of the Portfolios pursuant to Rule 12b-1 of the 1940 Act. The
Plan provides for payments to the Distributor of up to 0.25% of the average
daily net assets of the Investment Shares of the Portfolios.
Gross distribution fees and fees waived for the six months ended June 30, 1997
are as follows:
<TABLE>
<CAPTION>
FUNDS GROSS FEES FEES WAIVED
- ------------------------------- ---------- -----------
<S> <C> <C>
Growth and Income Fund......... $ 22,283 --
Small Company Growth Fund...... 18,883 --
International Growth Fund...... 10,854 --
Index Equity Fund.............. 15,883 --
Short Term Bond Fund........... 2,326 $ 930
Intermediated Bond Fund........ 8,740 --
Income Fund.................... 3,560 --
Limited Term Tax-Free Fund..... 241 96
Intermediate Tax-Free Fund..... 4,111 --
Tax-Free Income Fund........... 1,094 --
Michigan Municipal Bond Fund... 3,056 1,222
Money Market Fund.............. -- --
Government Money Market Fund... -- --
Michigan Municipal Money Market
Fund......................... -- --
</TABLE>
Expenses for the Trust include legal fees paid to Drinker Biddle & Reath LLP.
A partner of that firm serves as Assistant Secretary of the Trust. For the six
months ended June 30, 1997, legal fees are as follows:
<TABLE>
<CAPTION>
FUNDS FEES
- ----------------------------------------------- --------
<S> <C>
Growth and Income Fund......................... $ 5,367
Small Company Growth Fund...................... 5,091
International Growth Fund...................... 5,314
Index Equity Fund.............................. 3,259
Short Term Bond Fund........................... 1,957
Intermediate Bond Fund......................... 5,533
Income Fund.................................... 2,503
Limited Term Tax-Free Fund..................... 289
Intermediate Tax-Free Fund..................... 2,923
Tax-Free Income Fund........................... 1,121
Michigan Municipal Bond Fund................... 1,185
Money Market Fund.............................. 5,317
Government Money Market Fund................... 116
Michigan Municipal Money Market Fund........... 1,015
</TABLE>
106
<PAGE> 109
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Portfolios are summarized below:
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND SMALL COMPANY GROWTH FUND
--------------------------------- ----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued................................ $130,847,340 $150,224,731 $ 90,904,100 $ 132,474,283
Reinvestment of distributions................ 4,889,215 25,727,424 7,253,814 14,200,151
Shares redeemed.............................. (67,283,654) (97,365,654) (73,578,772) (115,454,666)
------------ ------------ ------------ -------------
Net increase (decrease) from Institutional
shares transactions...................... $ 68,452,901 $78,586,501 $ 24,579,142 $ 31,219,768
------------ ------------ ------------ -------------
INVESTMENT:
Shares issued................................ $ 7,072,363 $ 3,623,107 $ 2,567,795 $ 2,999,500
Reinvestment of distributions................ 312,296 1,684,171 363,337 691,055
Shares redeemed.............................. (1,631,285) (1,920,037) (1,550,664) (1,767,536)
------------ ------------ ------------ -------------
Net increase (decrease) from Investment
shares transactions...................... $ 5,753,374 $ 3,387,241 $ 1,380,468 $ 1,923,019
------------ ------------ ------------ -------------
Total net increase (decrease) from share
transactions............................. $ 74,206,275 $81,973,742 $ 25,959,610 $ 33,142,787
============ ============ ============ =============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued................................ 8,994,821 10,889,808 5,718,762 8,964,612
Reinvestment of distributions................ 339,504 1,890,610 476,726 937,802
Shares redeemed.............................. (4,576,695) (7,034,231) (4,539,714) (7,693,348)
------------ ------------ ------------ -------------
Net increase (decrease) from Institutional
shares transactions...................... 4,757,630 5,746,187 1,655,774 2,209,066
------------ ------------ ------------ -------------
INVESTMENT:
Shares issued................................ 490,839 265,482 163,146 203,920
Reinvestment of distributions................ 21,829 124,536 23,980 45,725
Shares redeemed.............................. (114,738) (139,590) (98,657) (118,619)
------------ ------------ ------------ -------------
Net increase (decrease) from Investment
shares transactions...................... 397,930 250,428 88,469 131,026
------------ ------------ ------------ -------------
Total net increase (decrease) from share
transactions............................. 5,155,560 5,996,615 1,744,243 2,340,092
============ ============ ============ =============
</TABLE>
107
<PAGE> 110
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH FUND INDEX EQUITY FUND
--------------------------------- ---------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued................................. $ 93,801,170 $137,648,487 $ 55,067,104 $69,650,513
Reinvestment of distributions................. -- 3,147,652 1,488,596 5,950,954
Shares redeemed............................... (50,978,027) (50,898,479) (33,405,999) (50,001,044)
------------ ------------ ------------ ------------
Net increase (decrease) from Institutional
shares transactions....................... $ 42,823,143 $89,897,660 $ 23,149,701 $25,600,423
------------ ------------ ------------ ------------
INVESTMENT:
Shares issued................................. $ 1,488,763 $ 1,976,895 $ 6,402,783 $ 2,739,605
Reinvestment of distributions................. -- 128,041 82,452 329,198
Shares redeemed............................... (1,373,142) (1,176,997) (968,424) (1,112,357)
------------ ------------ ------------ ------------
Net increase (decrease) from Investment
shares transactions....................... $ 115,621 $ 927,939 $ 5,516,811 $ 1,956,446
------------ ------------ ------------ ------------
Total net increase (decrease) from share
transactions.............................. $ 42,938,764 $90,825,599 $ 28,666,512 $27,556,869
============ ============ ============ ============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued................................. 6,409,115 9,359,272 3,449,962 5,172,550
Reinvestment of distributions................. -- 215,585 92,931 434,418
Shares redeemed............................... (3,360,289) (3,491,780) (2,105,123) (3,699,843)
------------ ------------ ------------ ------------
Net increase (decrease) from Institutional
shares transactions....................... 3,048,826 6,083,077 1,437,770 1,907,125
------------ ------------ ------------ ------------
INVESTMENT:
Shares issued................................. 101,972 137,013 403,248 205,672
Reinvestment of distributions................. -- 8,820 5,127 24,012
Shares redeemed............................... (94,536) (81,019) (61,386) (81,276)
------------ ------------ ------------ ------------
Net increase (decrease) from Investment
shares transactions....................... 7,436 64,814 346,989 148,408
------------ ------------ ------------ ------------
Total net increase (decrease) from share
transactions.............................. 3,056,262 6,147,891 1,784,759 2,055,533
============ ============ ============ ============
</TABLE>
108
<PAGE> 111
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
SHORT TERM INTERMEDIATE
BOND FUND BOND FUND INCOME FUND
-------------------------------- -------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------- ---------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued......... $ 20,511,990 $ 71,054,235 $ 91,160,684 $ 198,301,060 $ 38,084,105 $154,129,760
Reinvestment of
distributions....... 3,808,758 11,089,747 12,442,444 28,757,725 1,736,378 2,631,559
Shares redeemed....... (96,568,658) (151,375,676) (106,757,022) (281,359,682) (23,273,953) (35,226,634)
------------ ------------- ------------- ------------- ------------ ------------
Net increase
(decrease) from
Institutional
shares
transactions...... $(72,247,910) $ (69,231,694) $ (3,153,894) $ (54,300,897) $ 16,546,530 $121,534,685
------------ ------------- ------------- ------------- ------------ ------------
INVESTMENT:
Shares issued......... $ 1,766,842 $ 346,979 $ 654,618 $ 1,793,614 $ 1,047,589 $ 1,318,844
Reinvestment of
distributions....... 56,627 85,049 167,405 371,260 99,420 147,412
Shares redeemed....... (655,647) (365,200) (1,137,423) (1,445,746) (388,231) (581,526)
------------ ------------- ------------- ------------- ------------ ------------
Net increase
(decrease) from
Investment shares
transactions...... $ 1,167,822 $ 66,828 $ (315,400) $ 719,128 $ 758,778 $ 884,730
------------ ------------- ------------- ------------- ------------ ------------
Total net increase
(decrease) from share
transactions.......... $(71,080,088) $ (69,164,866) $ (3,469,294) $ (53,581,769) $ 17,305,308 $122,419,415
============ ============= ============= ============= ============ ============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued......... 2,114,612 7,222,192 9,400,149 20,156,864 3,809,798 15,175,279
Reinvestment of
distributions....... 394,182 1,133,650 1,291,696 2,949,495 176,443 259,124
Shares redeemed....... (9,915,138) (15,396,719) (10,996,266) (28,751,972) (2,323,446) (3,437,207)
------------ ------------- ------------- ------------- ------------ ------------
Net increase
(decrease) from
Institutional
shares
transactions...... (7,406,344) (7,040,877) (304,421) (5,645,613) 1,662,795 11,997,196
------------ ------------- ------------- ------------- ------------ ------------
INVESTMENT:
Shares issued......... 182,756 35,323 67,344 182,449 105,769 129,967
Reinvestment of
distributions....... 5,867 8,703 17,345 38,010 10,103 14,507
Shares redeemed....... (67,723) (37,044) (117,397) (148,005) (39,266) (57,824)
------------ ------------- ------------- ------------- ------------ ------------
Net increase
(decrease) from
Investment shares
transactions...... 120,900 6,982 (32,708) 72,454 76,606 86,650
------------ ------------- ------------- ------------- ------------ ------------
Total net increase
(decrease) from share
transactions.......... (7,285,444) (7,033,895) (337,129) (5,573,159) 1,739,401 12,083,846
============ ============= ============= ============= ============ ============
</TABLE>
109
<PAGE> 112
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
LIMITED TERM INTERMEDIATE
TAX-FREE FUND TAX-FREE FUND
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued...................................... $ 4,073,580 $ 8,644,704 $ 22,100,344 $62,493,861
Reinvestment of distributions...................... 9,255 16,368 49,847 42,417
Shares redeemed.................................... (9,621,810) (22,256,093) (24,963,692) (57,683,879)
------------ ------------ ------------ ------------
Net increase (decrease) from Institutional shares
transactions................................... $ (5,538,975) $(13,595,021) $ (2,813,501) $ 4,852,399
------------ ------------ ------------ ------------
INVESTMENT:
Shares issued...................................... $ 423,294 $ 51,698 $ 550,449 $ 921,734
Reinvestment of distributions...................... 3,646 2,603 38,628 77,714
Shares redeemed.................................... (76,467) (2,105) (870,118) (1,389,670)
------------ ------------ ------------ ------------
Net increase (decrease) from Investment shares
transactions................................... $ 350,473 $ 52,196 $ (281,041) $ (390,222)
------------ ------------ ------------ ------------
Total net increase (decrease) from share
transactions....................................... $ (5,188,502) $(13,542,825) $ (3,094,542) $ 4,462,177
============ ============ ============ ============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued...................................... 400,674 849,971 2,118,896 5,988,213
Reinvestment of distributions...................... 913 1,612 4,818 4,102
Shares redeemed.................................... (944,853) (2,187,798) (2,400,785) (5,565,749)
------------ ------------ ------------ ------------
Net increase (decrease) from Institutional shares
transactions................................... (543,266) (1,336,215) (277,071) 426,566
------------ ------------ ------------ ------------
INVESTMENT:
Shares issued...................................... 41,668 5,061 53,014 89,120
Reinvestment of distributions...................... 358 256 3,729 7,510
Shares redeemed.................................... (7,524) (205) (83,884) (135,420)
------------ ------------ ------------ ------------
Net increase (decrease) from Investment shares
transactions..................................... 34,502 5,112 (27,141) (38,790)
------------ ------------ ------------ ------------
Total net increase (decrease) from share
transactions....................................... (508,764) (1,331,103) (304,212) 387,776
============ ============ ============ ============
</TABLE>
110
<PAGE> 113
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
TAX-FREE MICHIGAN MUNICIPAL
INCOME FUND BOND FUND
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued...................................... $ 18,044,048 $34,651,840 $ 17,583,397 $27,099,86P0
Reinvestment of distributions...................... 30,003 28,992 31,257 44,917
Shares redeemed.................................... (11,277,514) (44,605,879) (46,627,889) (59,293,642)
------------ ------------ ------------ ------------
Net increase (decrease) from Institutional shares
transactions................................... $ 6,796,537 $(9,925,047) $(29,013,235) $(32,148,865)
------------ ------------ ------------ ------------
INVESTMENT:
Shares issued...................................... $ 301,226 $ 530,708 $ 1,183,729 $ 1,008,626
Reinvestment of distributions...................... 14,610 39,399 18,796 29,665
Shares redeemed.................................... (372,533) (150,441) (852,507) (509,760)
------------ ------------ ------------ ------------
Net increase (decrease) from Investment shares
transactions................................... $ (56,697) $ 419,666 $ 350,018 $ 528,531
------------ ------------ ------------ ------------
Total net increase (decrease) from share
transactions....................................... $ 6,739,840 $(9,505,381) $(28,663,217) $(31,620,334)
============ ============ ============ ============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued...................................... 1,756,780 3,371,900 1,741,251 2,693,878
Reinvestment of distributions...................... 2,945 2,825 3,116 4,468
Shares redeemed.................................... (1,101,825) (4,276,961) (4,613,668) (5,886,119)
------------ ------------ ------------ ------------
Net increase (decrease) from Institutional shares
transactions................................... 657,900 (902,236) (2,869,301) (3,187,773)
------------ ------------ ------------ ------------
INVESTMENT:
Shares issued...................................... 29,420 51,428 117,990 100,489
Reinvestment of distributions...................... 1,430 3,826 1,874 2,956
Shares redeemed.................................... (36,646) (14,550) (85,112) (50,830)
------------ ------------ ------------ ------------
Net increase (decrease) from Investment shares
transactions..................................... (5,796) 40,704 34,752 52,615
------------ ------------ ------------ ------------
Total net increase (decrease) from share
transactions....................................... 652,104 (861,532) (2,834,549) (3,135,158)
============ ============ ============ ============
</TABLE>
111
<PAGE> 114
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
4. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT
MONEY MARKET MICHIGAN MUNICIPAL
MONEY MARKET FUND FUND MONEY MARKET FUND
------------------------------- ---------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997(1) JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) (UNAUDITED) 1996
---------------- ------------ ---------------- ---------------- ------------
<S> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued........................ $588,273,921 $844,257,954 $ 95,703,807 $129,300,889 $258,305,060
Reinvestment of distributions........ 770,247 540,797 -- 52,154 --
Shares redeemed...................... (483,737,178) (785,695,077) (24,347,247) (90,918,132) (248,095,918)
------------ ------------- ------------- ------------- ------------
Net increase (decrease) from
Institutional shares
transactions..................... $105,306,990 $ 59,103,674 $ 71,356,560 $ 38,434,911 $ 10,209,142
------------ ------------- ------------- ------------- ------------
INVESTMENT:
Shares issued........................ $ 971,860 $ 1,173,842 $ 1,000 $ 136,012 $ 136,170
Reinvestment of distributions........ 20,209 46,359 -- 8,984 28,579
Shares redeemed...................... (1,070,255) (1,643,459) -- (640,026) (986,230)
------------ ------------- ------------- ------------- ------------
Net increase (decrease) from
Investment shares transactions... $ (78,186) $ (423,258) $ 1,000 $ (495,030) $ (821,481)
------------ ------------- ------------- ------------- ------------
Total net increase (decrease) from
share transactions................... $105,228,804 $ 58,680,416 $ 71,357,560 $ 37,939,881 $ 9,387,661
============ ============= ============= ============= ============
SHARE AMOUNTS
INSTITUTIONAL:
Shares issued........................ 588,273,921 844,257,954 95,703,807 129,300,889 258,305,060
Reinvestment of distributions........ 770,247 540,797 -- 52,154 --
Shares redeemed...................... (483,737,178) (785,695,077) (24,347,247) (90,918,134) (248,095,918)
------------ ------------- ------------- ------------- ------------
Net increase (decrease) from
Institutional shares
transactions..................... 105,306,990 59,103,674 71,356,560 38,434,909 10,209,142
------------ ------------- ------------- ------------- ------------
INVESTMENT:
Shares issued........................ 971,860 1,173,842 1,000 136,011 136,170
Reinvestment of distributions........ 20,211 46,359 -- 8,984 28,579
Shares redeemed...................... (1,070,255) (1,643,459) -- (640,024) (986,230)
------------ ------------- ------------- ------------- ------------
Net increase (decrease) from
Investment shares transactions... (78,184) (423,258) 1,000 (495,029) (821,481)
------------ ------------- ------------- ------------- ------------
Total net increase (decrease) from
share transactions................... 105,228,806 58,680,416 71,357,560 37,939,880 9,387,661
============ ============= ============= ============= ============
</TABLE>
- ---------------
(1) The Fund commenced operations June 2, 1997.
112
<PAGE> 115
The Kent NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Funds (CONTINUED)
5. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities (excluding
short-term investments) for the six months ended June 30, 1997 were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ----------------------- ------------ ------------
<S> <C> <C>
Growth and Income
Fund................. $177,093,867 $128,333,579
Small Company Growth
Fund................. 84,857,825 82,867,096
International Growth
Fund................. 61,836,501 9,773,241
Index Equity Fund...... 30,451,840 1,331,569
Short Term Bond Fund... 73,213,217 154,315,805
Intermediate Bond
Fund................. 486,451,528 533,246,231
Income Fund............ 83,295,456 77,167,494
Limited Term Tax-Free
Fund................. 4,821,200 11,158,335
Intermediate Tax-Free
Fund................. 34,366,936 43,510,022
Tax-Free Income Fund... 17,851,841 11,648,343
Michigan Municipal Bond
Fund................. 10,652,541 41,772,530
</TABLE>
6. FOREIGN SECURITIES
The Growth and Income Fund and the International Growth Fund may purchase
securities of foreign issuers. Investing in securities of foreign issuers
involves special risks not typically associated with investing in securities of
U.S. issuers.
The risks include devaluation of currencies and future adverse political and
economic developments. Moreover, securities of many foreign issuers and their
markets may be less liquid and their prices more volatile than those of
securities of comparable U.S. issuers.
7. CONCENTRATION OF CREDIT
The Michigan Municipal Money Market Fund and Michigan Municipal Bond Fund
invest primarily in debt obligations issued by the State of Michigan and its
respective political subdivisions, agencies and public authorities to obtain
funds for various public purposes. The Portfolios are more susceptible to
economic and political factors adversely affecting issuers of Michigan specific
municipal securities than are municipal bond funds that are not concentrated in
these issuers to the same extent.
113
<PAGE> 116
The Kent GROWTH AND INCOME FUND
Portfolios FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
SIX MONTHS ENDED --------------------------------------------------------
JUNE 30, 1997 1996 1995 1994 1993 1992(1)
---------------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $ 13.90 $ 13.25 $ 10.50 $ 10.91 $ 10.31 $ 10.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income........................ 0.14 0.30 0.33 0.31 0.27 0.06
Net realized and unrealized gains (losses) on
securities................................. 1.88 2.16 3.28 (0.26) 0.95 0.31
-------- -------- -------- -------- -------- --------
Total Income from Investment Operations........ 2.02 2.46 3.61 0.05 1.22 0.37
-------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income........................ (0.14) (0.30) (0.33) (0.31) (0.27) (0.06)
In excess of net investment income........... -- -- -- ** (0.01) **
Net realized gains on securities............. (0.14) (1.51) (0.53) (0.15) (0.34) --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions.......... (0.28) (1.81) (0.86) (0.46) (0.62) (0.06)
-------- -------- -------- -------- -------- --------
Net change in net asset value.................. 1.74 0.65 2.75 (0.41) 0.60 0.31
-------- -------- -------- -------- -------- --------
Net asset value, end of period................. $ 15.64 $ 13.90 $ 13.25 $ 10.50 $ 10.91 $ 10.31
======== ======== ======== ======== ======== ========
Total return................................... 14.71%++ 19.47% 34.91% 0.51% 11.98% 3.68%++
Ratios/Supplemental Data:
Net Assets, End of period (000's).............. $638,086 $500,857 $401,371 $308,825 $180,864 $ 76,449
Ratio of expenses to average net assets...... 0.90%+ 0.95% 0.94% 0.98% 1.03% 0.19%++
Ratio of net investment income to average net
assets..................................... 1.93%+ 2.18% 2.73% 3.04% 2.61% 3.51%+
Ratio of expenses to average net assets*..... 0.93%+ 0.95% +++ +++ +++ +++
Ratio of net investment income to average net
assets*.................................... 1.90%+ 2.18% +++ +++ +++ +++
Portfolio turnover rate(2)................... 23% 39% 58% 28% 54% 0%
Average Commission Rate Paid(3).............. $ 0.0512 $ 0.0539 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
114
<PAGE> 117
The Kent GROWTH AND INCOME FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION> SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 13.81 $ 13.19 $ 10.46 $ 10.87 $ 10.29 $ 10.23
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income....................... 0.12 0.26 0.30 0.32 0.27 **
Net realized and unrealized gains (losses)
on securities............................. 1.88 2.15 3.26 (0.27) 0.93 0.06
------- ------- ------- ------- ------- -------
Total Income from Investment Operations....... 2.00 2.41 3.56 0.05 1.20 0.06
------- ------- ------- ------- ------- -------
Less Dividends and Distributions from:
Net investment income....................... (0.13) (0.26) (0.30) (0.31) (0.23) --
In excess of net investment income.......... -- (0.02) -- ** (0.05) --
Net realized gains on securities............ (0.14) (1.51) (0.53) (0.15) (0.20) --
In excess of net realized gains............. -- -- -- -- (0.14) --
------- ------- ------- ------- ------- -------
Total Dividends and Distributions......... (0.27) (1.79) (0.83) (0.46) (0.62) --
------- ------- ------- ------- ------- -------
Net change in net asset value................. 1.73 0.62 2.73 (0.41) 0.58 0.06
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 15.54 $ 13.81 $ 13.19 $ 10.46 $ 10.87 $ 10.29
======= ======= ======= ======= ======= =======
Total return.................................. 14.61%++ 19.14% 34.61% 0.50% 11.81% 0.59%++
Ratios/Supplemental Data:
Net Assets, End of period (000's)............. $23,133 $15,063 $11,079 $ 8,005 $ 4,607 $ 102
Ratio of expenses to average net assets..... 1.15%+ 1.09% 1.18% 0.98% 1.22% 0.33%++
Ratio of net investment income (loss) to
average net assets........................ 1.68%+ 1.77% 2.48% 3.03% 2.43% (0.88%)+
Ratio of expenses to average net assets*.... 1.18%+ 1.09% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................... 1.65%+ 1.77% +++ +++ +++ +++
Portfolio turnover rate(2).................. 23% 39% 58% 28% 54% 0%
Average Commission Rate Paid(3)............. $0.0512 $0.0539 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Investment Class date of initial public investment was December 1,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
115
<PAGE> 118
The Kent SMALL COMPANY GROWTH FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 15.65 $ 13.82 $ 11.99 $ 12.50 $ 10.85 $ 10.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income.................. 0.03 0.12 0.10 0.10 0.08 0.02
Net realized and unrealized gains
(losses) on securities............... 2.37 2.55 2.64 (0.10) 1.76 0.86
-------- -------- -------- -------- -------- --------
Total Income from Investment
Operations............................. 2.40 2.67 2.74 -- 1.84 0.88
-------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.................. (0.04) (0.12) (0.10) (0.09) (0.08) (0.02)
In excess of net investment income..... -- -- -- (0.01) (0.01) (0.01)
Net realized gains on securities....... (0.38) (0.72) (0.81) (0.41) (0.10) --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions.... (0.42) (0.84) (0.91) (0.51) (0.19) (0.03)
-------- -------- -------- -------- -------- --------
Net change in net asset value............ 1.98 1.83 1.83 (0.51) 1.65 0.85
-------- -------- -------- -------- -------- --------
Net asset value, end of period........... $ 17.63 $ 15.65 $ 13.82 $ 11.99 $ 12.50 $ 10.85
======== ======== ======== ======== ======== ========
Total return............................. 15.73%++ 19.56% 23.75% (0.06%) 17.04% 8.75%++
Ratios/Supplemental Data:
Net Assets, End of period (000's)........ $ 642,271 $544,081 $450,072 $304,179 $252,401 $ 95,999
Ratio of expenses to average net
assets............................... 0.92%+ 0.96% 0.97% 0.98% 1.06% 0.18%++
Ratio of net investment income to
average net assets................... 0.38%+ 0.78% 0.83% 0.79% 0.74% 1.35%+
Ratio of expenses to average net
assets*.............................. 0.94%+ 0.96% +++ +++ +++ +++
Ratio of net investment income to
average net assets*.................. 0.36%+ 0.78% +++ +++ +++ +++
Portfolio turnover rate(2)............. 14% 16% 30% 20% 14% 1%
Average Commission Rate Paid(3)........ $ 0.0497 $ 0.0481 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
116
<PAGE> 119
Kent SMALL COMPANY GROWTH FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 15.61 $ 13.81 $ 11.98 $ 12.49 $ 10.86 $ 10.65
------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net investment income....................... 0.01 0.07 0.07 0.10 0.08 **
Net realized and unrealized gains (losses)
on securities and futures contracts....... 2.37 2.54 2.64 (0.11) 1.74 0.21
------- ------- ------- ------- ------- -------
Total Income (Loss) from Investment
Operations.................................. 2.38 2.61 2.71 (0.01) 1.82 0.21
------- ------- ------- ------- ------- -------
Less Dividends and Distributions from:
Net investment income....................... (0.02) (0.08) (0.07) (0.08) (0.06) --
In excess of net investment income.......... -- (0.01) -- (0.01) (0.03) --
Net realized gains on securities............ (0.38) (0.72) (0.81) (0.41) (0.10) --
------- ------- ------- ------- ------- -------
Total Dividends and Distributions......... (0.40) (0.81) (0.88) (0.50) (0.19) --
------- ------- ------- ------- ------- -------
Net change in net asset value................. 1.98 1.80 1.83 (0.51) 1.63 0.21
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 17.59 $ 15.61 $ 13.81 $ 11.98 $ 12.49 $ 10.86
======= ======= ======= ======= ======= =======
Total return.................................. 15.66%++ 19.16% 23.47% (0.08%) 16.84% 1.97%++
Ratios/Supplemental Data:
Net Assets, End of period (000's)............. $17,817 $14,436 $10,955 $ 8,433 $ 5,345 $ 84
Ratio of expenses to average net assets..... 1.17%+ 1.21% 1.20% 0.98% 1.25% 0.27%+
Ratio of net investment income to average
net assets................................ 0.13%+ 0.53% 0.59% 0.79% 0.59% (1.50%)+
Ratio of expenses to average net assets*.... 1.19%+ 1.21% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................... 0.11%+ 0.53% +++ +++ +++ +++
Portfolio turnover rate(2).................. 14% 16% 30% 20% 14% 1%
Average Commission Rate Paid(3)............. $0.0497 $0.0481 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Investment Class date of initial public investment was December 4,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
117
<PAGE> 120
The Kent INTERNATIONAL GROWTH FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 14.75 $ 14.18 $ 13.06 $ 12.84 $ 10.01 $ 10.00
---------- ---------- ---------- -------- -------- --------
Income from Investment Operations:
Net investment income.................... 0.10 0.13 0.13 0.12 0.09 **
Net realized and unrealized gains
(losses) on securities, foreign
currency and futures contracts......... 1.55 0.70 1.54 0.61 2.95 0.02
---------- ---------- ---------- -------- -------- --------
Total Income from Investment Operations.... 1.65 0.83 1.67 0.73 3.04 0.02
---------- ---------- ---------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.................... -- (0.10) (0.13) (0.07) (0.08) --
In excess of net investment income....... -- (0.02) (0.11) (0.03) (0.04) (0.01)
Net realized gains on securities......... -- (0.13) (0.31) (0.41) (0.08) --
In excess of net realized gains.......... -- (0.01) -- -- (0.01) --
---------- ---------- ---------- -------- -------- --------
Total Dividends and Distributions...... -- (0.26) (0.55) (0.51) (0.21) (0.01)
---------- ---------- ---------- -------- -------- --------
---
Net change in net asset value.............. 1.65 0.57 1.12 0.22 2.83 0.01
---------- ---------- ---------- -------- -------- --------
---
Net asset value, end of period............. $ 16.40 $ 14.75 $ 14.18 $ 13.06 $ 12.84 $ 10.01
---------- ---------- ---------- -------- -------- --------
Total return............................... 11.19%++ 5.87% 13.00% 5.73% 30.32% 0.20%++
Ratios/Supplemental Data:
Net Assets, End of period (000's).......... $ 481,179 $387,799 $286,545 $178,186 $157,716 $ 81,105
Ratio of expenses to average net
assets................................. 1.04%+ 1.09% 1.17% 1.22% 1.33% 0.14%++
Ratio of net investment income (loss) to
average net assets..................... 1.30%+ 0.97% 1.35% 0.87% 0.86% (0.28%)+
Ratio of expenses to average net
assets*................................ 1.06%+ 1.09% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................ 1.28%+ 0.97% +++ +++ +++ +++
Portfolio turnover rate(2)............... 2% 13% 6% 20% 5% 0%
Average Commission Rate Paid(3).......... $ 0.0224 $ 0.0219 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on December 4, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
118
<PAGE> 121
The Kent INTERNATIONAL GROWTH FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 14.69 $ 14.13 $ 13.00 $ 12.81 $ 10.03 $ 10.00
---------- ---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net investment income.................... 0.07 0.12 0.14 0.14 0.13 **
Net realized and unrealized gains
(losses) on securities, foreign
currency and futures contracts......... 1.55 0.66 1.50 0.56 2.85 0.03
---------- ---------- ---------- ---------- ---------- ----------
Total Income from Investment Operations.... 1.62 0.78 1.64 0.70 2.98 0.03
---------- ---------- ---------- ---------- ---------- ----------
Less Dividends and Distributions from:
Net investment income.................... -- (0.08) (0.09) (0.07) (0.02) --
In excess of net investment income....... -- -- (0.11) (0.03) (0.09) --
Net realized gains on securities......... -- (0.14) (0.31) (0.41) (0.05) --
In excess of net realized gains.......... -- -- -- -- (0.04) --
---------- ---------- ---------- ---------- ---------- ----------
Total Dividends and Distributions...... -- (0.22) (0.51) (0.51) (0.20) --
---------- ---------- ---------- ---------- ---------- ----------
Net change in net asset value.............. 1.62 0.56 1.13 0.19 2.78 0.03
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period............. $ 16.31 $ 14.69 $ 14.13 $ 13.00 $ 12.81 $ 10.03
========== ========== ========== ========== ========== ==========
Total return............................... 11.03%++ 5.57% 12.86% 5.51% 29.67% 0.30%++
Ratios/Supplemental Data:
Net Assets, End of period (000's).......... $ 9,893 $ 8,799 $ 7,548 $ 6,539 $ 3,202 $ 15
Ratio of expenses to average net
assets................................. 1.29%+ 1.34% 1.40% 1.25% 1.43% 0.20%++
Ratio of net investment income (loss) to
average net assets..................... 1.02%+ 0.74% 1.11% 0.81% 0.32% (1.34%)++
Ratio of expenses to average net
assets*................................ 1.31%+ 1.34% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................ 1.00%+ 0.74% +++ +++ +++ +++
Portfolio turnover rate(2)............... 2% 13% 6% 20% 5% 0%
Average Commission Rate Paid(3).......... $ 0.0224 $ 0.0219 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Investment Class date of initial public investment was December 4,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
119
<PAGE> 122
The Kent INDEX EQUITY FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 14.71 $ 12.56 $ 10.68 $ 11.04 $ 10.41 $ 10.00
---------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income.................... 0.12 0.26 0.26 0.25 0.23 0.05
Net realized and unrealized gains
(losses) on securities and futures
contracts.............................. 2.84 2.47 3.44 (0.15) 0.71 0.41
---------- -------- -------- -------- -------- --------
Total Income from Investment Operations.... 2.96 2.73 3.70 0.10 0.94 0.46
---------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.................... (0.12) (0.26) (0.25) (0.26) (0.23) (0.05)
In excess of net investment income....... -- -- -- -- ** **
Net realized gains on securities......... ** (0.28) (1.57) (0.20) (0.08) --
In excess of net realized gains.......... -- (0.04) -- -- -- --
---------- -------- -------- -------- -------- --------
Total Dividends and Distributions...... (0.12) (0.58) (1.82) (0.46) (0.31) (0.05)
---------- -------- -------- -------- -------- --------
Net change in net asset value.............. 2.84 2.15 1.88 (0.36) 0.63 0.41
---------- -------- -------- -------- -------- --------
Net asset value, end of period............. $ 17.55 $ 14.71 $ 12.56 $ 10.68 $ 11.04 $ 10.41
========== ======== ======== ======== ======== ========
Total return............................... 20.23%++ 22.18% 36.23% 0.86% 9.11% 4.55%++
Ratios/Supplemental Data:
Net Assets, End of period (000's).......... $ 315,702 $243,438 $183,877 $245,550 $233,451 $153,431
Ratio of expenses to average net
assets................................. 0.42%+ 0.49% 0.56% 0.58% 0.65% 0.13%++
Ratio of net investment income to average
net assets............................. 1.58%+ 1.91% 2.14% 2.32% 2.18% 2.65%+
Ratio of expenses to average net
assets*................................ 0.54%+ 0.59% 0.56% 0.58% 0.65% 0.13%++
Ratio of net investment income to average
net assets*............................ 1.46%+ 1.81% 2.14% 2.32% 2.18% 2.65%+
Portfolio turnover rate(2)............... 1% 2% 3% 50% 1% 0%
Average Commission Rate Paid(3).......... $ 0.0529 $ 0.0496 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
120
<PAGE> 123
The Kent INDEX EQUITY FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 14.72 $ 12.57 $ 10.70 $ 11.07 $ 10.44 $ 10.28
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income....................... 0.10 0.22 0.23 0.26 0.22 **
Net realized and unrealized gains (losses)
on securities and futures contracts....... 2.84 2.48 3.44 (0.17) 0.72 0.16
------- ------- ------- ------- ------- -------
Total Income from Investment Operations....... 2.94 2.70 3.67 0.09 0.94 0.16
------- ------- ------- ------- ------- -------
Less Dividends and Distributions from:
Net investment income....................... (0.10) (0.22) (0.23) (0.26) (0.20) --
In excess of net investment income.......... -- (0.01) -- -- (0.03) --
Net realized gains on securities............ ** (0.32) (1.57) (0.20) (0.06) --
In excess of net realized gains............. -- -- -- -- (0.02) --
------- ------- ------- ------- ------- -------
Total Dividends and Distributions......... (0.10) (0.55) (1.80) (0.46) (0.31) --
------- ------- ------- ------- ------- -------
Net change in net asset value................. 2.84 2.15 1.87 (0.37) 0.63 0.16
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 17.56 $ 14.72 $ 12.57 $ 10.70 $ 11.07 $ 10.44
======= ======= ======= ======= ======= =======
Total return.................................. 20.10%++ 21.92% 35.81% 0.75% 9.09% 1.56%++
Net Assets, End of Period (000's)............. $17,935 $ 9,925 $ 6,612 $ 4,736 $ 3,776 $ 89
Ratio of expenses to average net assets..... 0.67%+ 0.74% 0.80% 0.60% 0.86% 0.12%++
Ratio of net investment income to average
net assets................................ 1.33%+ 1.67% 1.86% 2.30% 2.04% 1.03%+
Ratio of expenses to average net assets*.... 0.79%+ 0.84% 0.81% 0.60% 0.86% 0.12%++
Ratio of net investment income to average
net assets*............................... 1.21%+ 1.57% 1.85% 2.30% 2.04% 1.03%+
Portfolio turnover rate(2).................. 1% 2% 3% 50% 1% 0%
Average Commission Rate Paid(3)............. $0.0529 $0.0496 -- -- -- --
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Investment Class date of initial public investment was November 25,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
(3) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. Disclosure is not
required for years ending prior to September 30, 1996.
See Notes to Financial Statements.
121
<PAGE> 124
The Kent SHORT TERM BOND FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 9.75 $ 9.96 $ 9.52 $ 9.91 $ 9.99 $ 10.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income.................. 0.31 0.61 0.55 0.48 0.42 0.07
Net realized and unrealized gains
(losses) on securities............... (0.06) (0.21) 0.43 (0.38) (0.09) (0.01)
-------- -------- -------- -------- -------- --------
Total Income from Investment
Operations............................. 0.25 0.40 0.98 0.10 0.33 0.06
-------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.................. (0.31) (0.61) (0.54) (0.49) (0.41) (0.07)
In excess of net investment income..... -- -- -- ** -- **
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions.... (0.31) (0.61) (0.54) (0.49) (0.41) (0.07)
-------- -------- -------- -------- -------- --------
Net change in net asset value............ (0.06) (0.21) 0.44 (0.39) (0.08) (0.01)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........... $ 9.69 $ 9.75 $ 9.96 $ 9.52 $ 9.91 $ 9.99
======== ======== ======== ======== ======== ========
Total return............................. 2.59%++ 4.22% 10.53% 1.03% 3.36% 0.53%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)........ $ 162,238 $235,430 $310,680 $176,765 $255,892 $186,124
Ratio of expenses to average net
assets............................... 0.71%+ 0.70% 0.77% 0.73% 0.81% 0.14%++
Ratio of net investment income to
average net assets................... 6.19%+ 6.17% 5.60% 4.75% 4.24% 4.05%+
Ratio of expenses to average net
assets*.............................. 0.73%+ 0.70% +++ +++ +++ +++
Ratio of net investment income to
average net assets*.................. 6.17%+ 6.17% +++ +++ +++ +++
Portfolio turnover rate(2)............. 42% 32% 75% 56% 50% 5%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations November 2, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
122
<PAGE> 125
The Kent SHORT TERM BOND FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- ------- ------- ------- ------- -------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 9.74 $ 9.95 $ 9.52 $ 9.91 $ 10.02 $ 9.99
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income....................... 0.29 0.59 0.52 0.47 0.38 0.02
Net realized and unrealized gains (losses)
on securities............................. (0.05) (0.20) 0.44 (0.37) (0.08) 0.01
------- ------- ------- ------- ------- -------
Total Income from Investment Operations....... 0.24 0.39 0.96 0.10 0.30 0.03
------- ------- ------- ------- ------- -------
Less Dividends and Distributions from:
Net investment income....................... (0.30) (0.54) (0.53) (0.48) (0.41) --
In excess of net investment income.......... -- (0.06) -- (0.01) -- --
------- ------- ------- ------- ------- -------
Total Dividends and Distributions......... (0.30) (0.60) (0.53) (0.49) (0.41) --
------- ------- ------- ------- ------- -------
Net change in net asset value................. (0.06) (0.21) 0.43 (0.39) (0.11) 0.03
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 9.68 $ 9.74 $ 9.95 $ 9.52 $ 9.91 $ 10.02
======= ======= ======= ======= ======= =======
Total return.................................. 2.49%++ 4.06% 10.30% 1.01% 3.04% 0.30%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)............. $ 2,827 $ 1,667 $ 1,634 $ 1,649 $ 1,427 $ 111
Ratio of expenses to average net assets..... 0.86%+ 0.85% 0.91% 0.74% 1.24% 0.12%++
Ratio of net investment income to average
net assets................................ 6.04%+ 6.02% 5.40% 4.79% 3.91% 3.31%+
Ratio of expenses to average net assets*.... 0.98%+ 0.96% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................... 5.92%+ 5.91% +++ +++ +++ +++
Portfolio turnover rate(2).................. 42% 32% 75% 56% 50% 5%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Investment Class date of initial public investment was December 4,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
123
<PAGE> 126
The Kent INTERMEDIATE BOND FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 9.76 $ 10.12 $ 9.29 $ 10.18 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.................... 0.30 0.60 0.65 0.56 0.51 0.08
Net realized and unrealized gains
(losses) on securities................. (0.05) (0.32) 0.81 (0.88) 0.32 **
-------- -------- -------- -------- -------- --------
Total Income (Loss) from Investment
Operations............................... 0.25 0.28 1.46 (0.32) 0.83 0.08
-------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.................... (0.30) (0.61) (0.63) (0.54) (0.51) (0.08)
In excess of net investment income....... -- (0.03) -- (0.01) ** **
Net realized gains on securities......... -- -- -- (0.02) (0.14) --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions...... (0.30) (0.64) (0.63) (0.57) (0.65) (0.08)
-------- -------- -------- -------- -------- --------
Net change in net asset value.............. (0.05) (0.36) 0.83 (0.89) 0.18 --
-------- -------- -------- -------- -------- --------
Net asset value, end of period............. $ 9.71 $ 9.76 $ 10.12 $ 9.29 $ 10.18 $ 10.00
======== ======== ======== ======== ======== ========
Total return............................... 2.60%++ 3.01% 16.18% (3.19%) 8.42% 0.83%++
Ratios/Supplemental Data:
Net Assets, end of period (000's).......... $ 762,738 $769,395 $854,801 $977,865 $434,264 $203,129
Ratio of expenses to average net
assets................................. 0.75%+ 0.77% 0.77% 0.80% 0.85% 0.15%++
Ratio of net investment income to average
net assets............................. 6.16%+ 6.18% 6.50% 6.03% 5.03% 5.32%+
Ratio of expenses to average net
assets*................................ 0.77%+ 0.78% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................ 6.14%+ 6.17% +++ +++ +++ +++
Portfolio turnover rate(2)............... 67% 135% 166% 124% 126% 1%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
124
<PAGE> 127
The Kent INTERMEDIATE BOND FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period....... $ 9.78 $ 10.14 $ 9.32 $ 10.19 $ 10.03 $ 9.98
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.................... 0.29 0.58 0.61 0.57 0.47 0.03
Net realized and unrealized gains
(losses) on securities................. (0.05) (0.32) 0.82 (0.87) 0.34 0.02
-------- -------- -------- -------- -------- --------
Total Income (Loss) from Investment
Operations............................... 0.24 0.26 1.43 (0.30) 0.81 0.05
-------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.................... (0.29) (0.57) (0.61) (0.54) (0.46) --
In excess of net investment income....... -- (0.05) -- (0.01) (0.05) --
Net realized gains on securities......... -- -- -- (0.02) (0.14) --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions...... (0.29) (0.62) (0.61) (0.57) (0.65) --
-------- -------- -------- -------- -------- --------
Net change in net asset value.............. (0.05) (0.36) 0.82 (0.87) 0.16 0.05
-------- -------- -------- -------- -------- --------
Net asset value, end of period............. $ 9.73 $ 9.78 $ 10.14 $ 9.32 $ 10.19 $ 10.03
======== ======== ======== ======== ======== ========
Total return............................... 2.47%++ 2.76% 15.76% (3.01%) 8.19% 0.50%++
Ratios/Supplemental Data:
Net Assets, end of period (000's).......... $ 6,974 $ 7,327 $ 6,862 $ 9,196 $ 4,966 $ 174
Ratio of expenses to average net
assets................................. 1.00%+ 1.02% 1.01% 0.81% 1.13% 0.16%++
Ratio of net investment income to average
net assets............................. 5.91%+ 5.92% 6.24% 5.94% 4.75% 4.94%+
Ratio of expenses to average net
assets*................................ 1.02%+ 1.03% +++ +++ +++ +++
Ratio of net investment income to average
net assets*............................ 5.89%+ 5.91% +++ +++ +++ +++
Portfolio turnover rate(2)............... 67% 135% 166% 124% 126% 1%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Investment Class date of initial public investment was November 25,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
125
<PAGE> 128
The Kent INCOME FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, ---------------------
1997 1996 1995(1)
---------- -------- --------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period......................................... $ 10.16 $ 10.84 $ 10.00
-------- -------- --------
Income from Investment Operations:
Net investment income...................................................... 0.34 0.66 0.55
Net realized and unrealized gains (losses) on securities................... (0.11) (0.56) 0.92
-------- -------- --------
Total Income from Investment Operations...................................... 0.23 0.10 1.47
-------- -------- --------
Less Dividends and Distributions from:
Net investment income...................................................... (0.34) (0.65) (0.54)
In excess of net investment income......................................... -- (0.10) --
Net realized gains on securities........................................... (0.06) (0.03) (0.09)
-------- -------- --------
Total Dividends and Distributions........................................ (0.40) (0.78) (0.63)
-------- -------- --------
Net change in net asset value................................................ (0.17) (0.68) 0.84
-------- -------- --------
Net asset value, end of period............................................... $ 9.99 $ 10.16 $ 10.84
======== ======== ========
Total return................................................................. 2.35%++ 1.19% 15.05%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)............................................ $252,630 $240,060 $126,056
Ratio of expenses to average net assets.................................... 0.81%+ 0.83% 0.91%+
Ratio of net investment income to average net assets....................... 6.80%+ 6.57% 6.65%+
Ratio of expenses to average net assets*................................... 0.84%+ 0.83% +++
Ratio of net investment income to average net assets*...................... 6.77%+ 6.57% +++
Portfolio turnover rate(2)................................................. 32% 102% 50%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Institutional Class commenced operations on March 20, 1995.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements
126
<PAGE> 129
The Kent INCOME FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, -----------------
1997 1996 1995(1)
----------- ------ ------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period........................................... $ 10.16 $10.82 $10.00
------ ------ ------
Income from Investment Operations:
Net investment income........................................................ 0.32 0.66 0.52
Net realized and unrealized gains (losses) on securities..................... (0.10) (0.56) 0.91
------ ------ ------
Total Income from Investment Operations........................................ 0.22 0.10 1.43
------ ------ ------
Less Dividends and Distributions from:
Net investment income........................................................ (0.33) (0.64) (0.52)
In excess of net investment income........................................... -- (0.09) --
Net realized gains on securities............................................. (0.06) (0.03) (0.09)
------ ------ ------
Total Dividends and Distributions.......................................... (0.39) (0.76) (0.61)
------ ------ ------
Net change in net asset value.................................................. (0.17) (0.66) 0.82
------ ------ ------
Net asset value, end of period................................................. $ 9.99 $10.16 $10.82
====== ====== ======
Total return................................................................... 2.23%++ 1.16% 14.63%++
Ratios/Supplemental Data:
Net Assets, end of period (000's).............................................. $ 3,440 $2,722 $1,961
Ratio of expenses to average net assets...................................... 1.06%+ 1.08% 1.14%+
Ratio of net investment income to average net assets......................... 6.55%+ 6.31% 6.40%+
Ratio of expenses to average net assets*..................................... 1.09%+ 1.08% +++
Ratio of net investment income to average net assets*........................ 6.52%+ 6.31% +++
Portfolio turnover rate(2)................................................... 32% 102% 50%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
+++ During the period, there were no waivers and/or reimbursements.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Investment Class date of initial public investment was March 22, 1995.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements
127
<PAGE> 130
The Kent LIMITED TERM TAX-FREE FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ----------------------------------
1997 1996 1995 1994(1)
---------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period............................. $ 10.16 $ 10.22 $ 9.80 $ 10.00
-------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income.......................................... 0.20 0.39 0.39 0.13
Net realized and unrealized gains (losses) on securities....... 0.01 (0.04) 0.42 (0.21)
-------- -------- -------- --------
Total Income (Loss) from Investment Operations................... 0.21 0.35 0.81 (0.08)
-------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.......................................... (0.20) (0.40) (0.39) (0.12)
In excess of net investment income............................. -- ** -- --
Net realized gains on securities............................... (0.01) (0.01) -- --
-------- -------- -------- --------
Total Dividends and Distributions............................ (0.21) (0.41) (0.39) (0.12)
-------- -------- -------- --------
Net change in net asset value.................................... -- (0.06) 0.42 (0.20)
-------- -------- -------- --------
Net asset value, end of period................................... $ 10.16 $ 10.16 $ 10.22 $ 9.80
======== ======== ======== ========
Total return..................................................... 2.07%++ 3.54% 8.43% (0.77%)++
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 35,936 $ 41,472 $ 55,347 $ 43,497
Ratio of expenses to average net assets........................ 0.72%+ 0.75% 0.69% 0.79%+
Ratio of net investment income to average net assets........... 3.93%+ 3.84% 3.87% 3.81%+
Ratio of expenses to average net assets *...................... 0.75%+ 0.75% 0.74% 0.96%+
Ratio of net investment income to average net assets *......... 3.90%+ 3.84% 3.82% 3.64%+
Portfolio turnover rate(2)..................................... 14% 32% 51% 10%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on September 1, 1994.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements
128
<PAGE> 131
The Kent LIMITED TERM TAX-FREE FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ----------------------------------
1997 1996 1995 1994(1)
---------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period............................. $ 10.20 $ 10.24 $ 9.81 $ 9.87
-------- -------- -------- --------
Income from Investment Operations:
Net investment income.......................................... 0.20 0.37 0.37 0.06
Net realized and unrealized gains (losses) on securities....... 0.01 (0.02) 0.44 (0.06)
-------- -------- -------- --------
Total Income from Investment Operations.......................... 0.21 0.35 0.81 --
-------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income.......................................... (0.20) (0.35) (0.38) (0.06)
In excess of net investment income............................. -- (0.03) -- --
Net realized gains on securities............................... (0.01) (0.01) -- --
-------- -------- -------- --------
Total Dividends and Distributions............................ (0.21) (0.39) (0.38) (0.06)
-------- -------- -------- --------
Net change in net asset value.................................... -- (0.04) 0.43 (0.06)
-------- -------- -------- --------
Net asset value, end of period................................... $ 10.20 $ 10.20 $ 10.24 $ 9.81
======== ======== ======== ========
Total return..................................................... 2.00%++ 3.51% 8.40% 0.03%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)................................ $ 458 $ 106 $ 54 $ 7
Ratio of expenses to average net assets........................ 0.90%+ 0.87% 0.84% 0.87%+
Ratio of net investment income to average net assets........... 3.78%+ 3.69% 3.69% 3.86%+
Ratio of expenses to average net assets*....................... 1.03%+ 0.97% 0.85% 0.98%+
Ratio of net investment income to average net assets*.......... 3.65%+ 3.59% 3.69% 3.75%+
Portfolio turnover rate(2)..................................... 14% 32% 51% 10%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Investment Class date of initial public investment was November 1,
1994.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements
129
<PAGE> 132
The Kent INTERMEDIATE TAX-FREE FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
---------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 10.42 $ 10.52 $ 9.74 $ 10.45 $ 10.02 $ 10.00
-------- -------- -------- -------- -------- --------
Income (Loss) from Investment Operations:
Net investment income................... 0.23 0.44 0.45 0.40 0.37 0.01
Net realized and unrealized gains
(losses) on securities................ 0.02 (0.08) 0.79 (0.71) 0.47 0.03
-------- -------- -------- -------- -------- --------
Total Income (Loss) from Investment
Operations.............................. 0.25 0.36 1.24 (0.31) 0.84 0.04
-------- -------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income................... (0.23) (0.46) (0.45) (0.39) (0.36) (0.01)
In excess of net investment income...... -- ** (0.01) (0.01) -- (0.01)
Net realized gains on securities........ -- -- -- -- (0.05) --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions..... (0.23) (0.46) (0.46) (0.40) (0.41) (0.02)
-------- -------- -------- -------- -------- --------
Net change in net asset value............. 0.02 (0.10) 0.78 (0.71) 0.43 0.02
-------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 10.44 10.42 $ 10.52 $ 9.74 $ 10.45 $ 10.02
======== ======== ======== ======== ======== ========
Total return.............................. 2.42%++ 3.41% 12.90% (3.00%) 8.51% 0.40%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)......... $283,276 $285,674 $283,733 $380,715 $135,862 $ 36,938
Ratio of expenses to average net
assets................................ 0.72%+ 0.73% 0.72% 0.78% 0.84% 0.11%++
Ratio of net investment income to
average net assets.................... 4.41%+ 4.34% 4.39% 4.07% 3.62% 1.77%+
Ratio of expenses to average net
assets*............................... 0.74%+ 0.73% 0.72% 0.78% 0.84% 0.11%++
Ratio of net investment income to
average net assets*................... 4.39%+ 4.34% 4.39% 4.07% 3.62% 1.77%+
Portfolio turnover rate(2).............. 12% 35% 6% 36% 14% 0%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on December 16, 1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements
130
<PAGE> 133
The Kent INTERMEDIATE TAX-FREE FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
--------- ------- ------- ------- ------- -------
(UNAUDITE)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 10.42 $ 10.52 $ 9.74 $ 10.45 $ 10.04 $ 10.00
------- ------- ------- ------- ------- -------
Income (Loss) from Investment Operations:
Net investment income....................... 0.21 0.42 0.42 0.40 0.36 **
Net realized and unrealized gains (losses)
on securities............................. 0.02 (0.09) 0.79 (0.71) 0.46 0.04
------- ------- ------- ------- ------- -------
Total Income (Loss) from Investment
Operations.................................. 0.23 0.33 1.21 (0.31) 0.82 0.04
------- ------- ------- ------- ------- -------
Less Dividends and Distributions from:
Net investment income....................... (0.21) (0.41) (0.42) (0.39) (0.33) --
In excess of net investment income.......... -- (0.02) (0.01) (0.01) (0.03) --
Net realized gains on securities............ -- -- -- -- (0.05) --
------- ------- ------- ------- ------- -------
Total Dividends and Distributions......... (0.21) (0.43) (0.43) (0.40) (0.41) --
------- ------- ------- ------- ------- -------
Net change in net asset value................. 0.02 (0.10) 0.78 (0.71) 0.41 0.04
------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 10.44 $ 10.42 $ 10.52 $ 9.74 $ 10.45 $ 10.04
======= ======= ======= ======= ======= =======
Total return.................................. 2.28%++ 3.17% 12.66% (3.03%) 8.29% 0.40%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)............. $ 3,091 $ 3,368 $ 3,807 $ 4,505 $ 3,307 $ 92
Ratio of expenses to average net assets..... 0.97%+ 0.98% 0.97% 0.79% 1.08% 0.10%++
Ratio of net investment income to average
net assets................................ 4.16%+ 4.09% 4.13% 3.99% 3.44% 1.37%+
Ratio of expenses to average net assets*.... 0.99%+ 0.98% 0.97% 0.79% 1.08% 0.10%++
Ratio of net investment income to average
net assets*............................... 4.14%+ 4.09% 4.13% 3.99% 3.44% 1.37%+
Portfolio turnover rate(2).................. 12% 35% 6% 36% 14% 0%
</TABLE>
- ---------------
+ Annualized.
++ Not Annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Investment Class date of initial public investment was December 18,
1992.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
131
<PAGE> 134
The Kent TAX-FREE INCOME FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, ---------------------
1997 1996 1995(1)
---------- -------- --------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period......................................... $ 10.27 $ 10.49 $ 10.00
-------- -------- --------
Income from Investment Operations:
Net investment income...................................................... 0.23 0.46 0.36
Net realized and unrealized gains (losses) on securities................... 0.06 (0.06) 0.49
-------- -------- --------
Total Income from Investment Operations...................................... 0.29 0.40 0.85
-------- -------- --------
Less Dividends and Distributions from:
Net investment income...................................................... (0.23) (0.46) (0.36)
Net realized gains on securities........................................... (0.01) (0.16) --
-------- -------- --------
Total Dividends and Distributions........................................ (0.24) (0.62) (0.36)
-------- -------- --------
Net change in net asset value................................................ 0.05 (0.22) 0.49
-------- -------- --------
Net asset value, end of period............................................... $ 10.32 10.27 $ 10.49
======== ======== ========
Total return................................................................. 2.80%++ 3.92% 8.64%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)............................................ $117,300 $109,948 $121,855
Ratio of expenses to average net assets.................................... 0.78%+ 0.82% 0.73%+
Ratio of net investment income to average net assets....................... 4.47%+ 4.38% 4.44%+
Ratio of expenses to average net assets*................................... 0.81%+ 0.82% 0.91%+
Ratio of net investment income to average net assets*...................... 4.44%+ 4.38% 4.26%+
Portfolio turnover rate(2)................................................. 11% 40% 10%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Institutional Class commenced operations on March 20, 1995.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
132
<PAGE> 135
The Kent TAX-FREE INCOME FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, -----------------
1997 1996 1995(1)
----------- ------ ------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of period........................................... $ 10.29 $10.52 $10.00
------ ------ ------
Income from Investment Operations:
Net investment income........................................................ 0.21 0.41 0.31
Net realized and unrealized gains (losses) on securities..................... 0.07 (0.05) 0.51
------ ------ ------
Total Income from Investment Operations........................................ 0.28 0.36 0.82
------ ------ ------
Less Dividends and Distributions from:
Net investment income........................................................ (0.21) (0.43) (0.30)
Net realized gains on securities............................................. (0.01) (0.12) --
In excess of net realized gains on securities................................ -- (0.04) --
------ ------ ------
Total Dividends and Distributions.......................................... (0.22) (0.59) (0.30)
------ ------ ------
Net change in net asset value.................................................. 0.06 (0.23) 0.52
------ ------ ------
Net asset value, end of period................................................. $ 10.35 $10.29 $10.52
====== ====== ======
Total return................................................................... 2.76%++ 3.53% 8.34%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)............................................ $ 881 $ 936 $ 529
Ratio of expenses to average net assets...................................... 1.03%+ 1.07% 0.95%+
Ratio of net investment income to average net assets......................... 4.22%+ 4.14% 4.25%+
Ratio of expenses to average net assets*..................................... 1.06%+ 1.07% 1.17%+
Ratio of net investment income to average net assets*........................ 4.19%+ 4.14% 4.03%+
Portfolio turnover rate(2)................................................... 11% 40% 10%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Investment Class date of the initial public investment was March 31,
1995.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
133
<PAGE> 136
The Kent MICHIGAN MUNICIPAL BOND FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------
1997 1996 1995 1994 1993(1)
---------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................. $ 10.08 $ 10.12 $ 9.72 $ 10.06 $ 10.00
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income............................... 0.20 0.39 0.39 0.37 0.23
Net realized and unrealized gains (losses) on
securities........................................ -- (0.04) 0.39 (0.34) 0.07
-------- -------- -------- -------- --------
Total Income from Investment Operations............... 0.20 0.35 0.78 0.03 0.30
-------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income............................... (0.20) (0.39) (0.37) (0.36) (0.22)
In excess of net investment income.................. -- -- (0.01) (0.01) (0.01)
Net realized gains on securities.................... -- -- -- -- (0.01)
In excess of net realized gains..................... -- -- -- -- **
-------- -------- -------- -------- --------
Total Dividends and Distributions................. (0.20) (0.39) (0.38) (0.37) (0.24)
-------- -------- -------- -------- --------
Net change in net asset value......................... -- (0.04) 0.40 (0.34) 0.06
-------- -------- -------- -------- --------
Net asset value, end of period........................ $ 10.08 $ 10.08 $ 10.12 $ 9.72 $ 10.06
======== ======== ======== ======== ========
Total return.......................................... 2.05%++ 3.51% 8.20% 0.36% 3.06%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)..................... $123,722 $152,623 $185,466 $118,485 $ 74,647
Ratio of expenses to average net assets............. 0.68%+ 0.70% 0.69% 0.49% 0.24%+
Ratio of net investment income to average net
assets............................................ 4.07%+ 3.83% 3.81% 3.74% 3.34%+
Ratio of expenses to average net assets*............ 0.70%+ 0.70% 0.70% 0.74% 0.84%+
Ratio of net investment income to average net
assets*........................................... 4.05%+ 3.83% 3.80% 3.50% 2.74%+
Portfolio turnover rate(2).......................... 8% 24% 42% 27% 10%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Institutional Class commenced operations on May 3, 1993.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
134
<PAGE> 137
The Kent MICHIGAN MUNICIPAL BOND FUND
Funds FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------
1997 1996 1995 1994 1993(1)
----------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................. $ 10.07 $ 10.11 $ 9.72 $ 10.08 $ 10.02
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income............................... 0.20 0.38 0.37 0.35 0.21
Net realized and unrealized gains (losses) on
securities........................................ -- (0.05) 0.40 (0.34) 0.07
-------- -------- -------- -------- --------
Total Income from Investment Operations............... 0.20 0.33 0.77 0.01 0.28
-------- -------- -------- -------- --------
Less Dividends and Distributions from:
Net investment income............................... (0.20) (0.35) (0.37) (0.34) (0.21)
In excess of net investment income.................. -- (0.02) (0.01) (0.03) **
Net realized gains on securities.................... -- -- -- -- (0.01)
-------- -------- -------- -------- --------
Total Dividends and Distributions................. (0.20) (0.37) (0.38) (0.37) (0.22)
-------- -------- -------- -------- --------
Net change in net asset value......................... -- (0.04) 0.39 (0.36) 0.06
-------- -------- -------- -------- --------
Net asset value, end of period........................ $ 10.07 $ 10.07 $ 10.11 $ 9.72 $ 10.08
======== ======== ======== ======== ========
Total return.......................................... 1.98%++ 3.36% 8.01% 0.16% 2.85%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)..................... $ 2,772 $ 2,422 $ 1,900 $ 1,980 $ 283
Ratio of expenses to average net assets............. 0.83%+ 0.85% 0.83% 0.49% 0.25%+
Ratio of net investment income to average net
assets............................................ 3.92%+ 3.68% 3.68% 3.80% 3.43%+
Ratio of expenses to average net assets*............ 0.95%+ 0.95% 0.85% 0.68% 1.08%+
Ratio of net investment income to average net
assets*........................................... 3.80%+ 3.58% 3.67% 3.61% 2.60%+
Portfolio turnover rate(2).......................... 8% 24% 42% 27% 10%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
(1) The Investment Class date of initial public investment was May 11, 1993.
(2) Portfolio turnover is calculated on the basis of the Portfolio as a whole
without distinguishing between the classes of shares issued.
See Notes to Financial Statements.
135
<PAGE> 138
The Kent MONEY MARKET FUND
Funds FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992
---------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income................... 0.03 0.05 0.05 0.04 0.03 0.03
-------- -------- -------- -------- -------- --------
Less Dividends from:
Net investment income................... (0.03) (0.05) (0.05) (0.04) (0.03) (0.03)
-------- -------- -------- -------- -------- --------
Net change in net asset value............. -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 1.00 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return.............................. 2.53%++ 5.06% 5.58% 3.75% 2.68% 3.40%
Ratios/Supplemental Data:
Net Assets, end of period (000's)......... $589,225 $483,919 $424,815 $323,539 $359,624 $220,508
Ratio of expenses to average net
assets................................ 0.51%+ 0.52% 0.55% 0.60% 0.60% 0.60%
Ratio of net investment income to
average net assets.................... 5.05%+ 4.95% 5.45% 3.65% 2.65% 3.23%
Ratio of expenses to average net
assets*............................... 0.63%+ 0.62% 0.63% 0.65% 0.68% 0.91%
Ratio of net investment income to
average net assets*................... 4.93%+ 4.85% 5.37% 3.59% 2.57% 2.92%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
See Notes to Financial Statements.
136
<PAGE> 139
The Kent MONEY MARKET FUND
Portfolios FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
---------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income................... 0.03 0.05 0.05 0.04 0.03 --
-------- -------- -------- -------- -------- --------
Less Dividends from:
Net investment income................... (0.03) (0.05) (0.05) (0.04) (0.03) --
-------- -------- -------- -------- -------- --------
Net change in net asset value............. -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return.............................. 2.53%++ 5.06% 5.56% 3.71% 2.67% 0.27%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)......... $ 726 $ 804 $ 1,227 $ 369 $ 593 $ 11
Ratio of expenses to average net
assets................................ 0.51%+ 0.52% 0.55% 0.63% 0.63% 0.63%+
Ratio of net investment income to
average net assets.................... 5.05%+ 4.94% 5.41% 3.58% 2.63% 3.30%+
Ratio of expenses to average net
assets*............................... 0.63%+ 0.62% 0.62% 0.68% 4.49% 0.68%+
Ratio of net investment income (loss) to
average net assets*................... 4.93%+ 4.84% 5.33% 3.53% (1.24%) 3.25%+
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Investment Class date of initial public investment was December 9,
1992.
See Notes to Financial Statements.
137
<PAGE> 140
The Kent GOVERNMENT MONEY MARKET FUND
Portfolios FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
PERIOD
ENDED JUNE
30, 1997(1)
-----------
(UNAUDITED)
<S> <C>
Net asset value, beginning of period.................................................................. $ 1.00
-------
Income from Investment Operations:
Net investment income............................................................................... 0.004
-------
Less Dividends from:
Net investment income............................................................................... (0.004)
-------
Net change in net asset value......................................................................... --
-------
Net asset value, end of period........................................................................ $ 1.00
=======
Total return.......................................................................................... 0.42%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)..................................................................... $71,356
Ratio of expenses to average net assets............................................................. 0.27%+
Ratio of net investment income to average net assets................................................ 5.32%+
Ratio of expenses to average net assets*............................................................ 0.67%+
Ratio of net investment income to average net assets*............................................... 4.91%+
</TABLE>
- ---------------
+ Annualized
++ Not Annualized
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Fund commenced operations June 2, 1997.
See Notes to Financial Statements.
138
<PAGE> 141
The Kent GOVERNMENT MONEY MARKET FUND
Portfolios FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
PERIOD
ENDED JUNE
30, 1997(1)
-----------
(UNAUDITED)
<S> <C>
Net asset value, beginning of period.................................................................. $ 1.00
-------
Income from Investment Operations:
Net investment income............................................................................... 0.004
-------
Less Dividends from:
Net investment income............................................................................... (0.004)
-------
Net change in net asset value......................................................................... --
-------
Net asset value, end of period........................................................................ $ 1.00
=======
Total return.......................................................................................... 0.41%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)..................................................................... $ 1
Ratio of expenses to average net assets............................................................. 0.38%+
Ratio of net investment income to average net assets................................................ 5.16%+
Ratio of expenses to average net assets*............................................................ 0.78%+
Ratio of net investment income to average net assets*............................................... 4.75%+
</TABLE>
- ---------------
+ Annualized
++ Not Annualized
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
(1) The Fund commenced operations June 2, 1997.
See Notes to Financial Statements.
139
<PAGE> 142
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Portfolios FINANCIAL HIGHLIGHTS
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992
----------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income.................. 0.02 0.03 0.03 0.02 0.02 0.03
------- ------- ------- ------- ------- -------
Less Dividends from:
Net investment income.................. (0.02) (0.03) (0.03) (0.02) (0.02) (0.03)
------- ------- ------- ------- ------- -------
Net change in net asset value............ -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total return............................. 1.62%++ 3.11% 3.50% 2.40% 2.00% 2.63%
Ratios/Supplemental Data:
Net Assets, end of period (000's)........ $ 193,859 $155,424 $145,215 $128,164 $183,366 $ 72,906
Ratio of expenses to average net
assets............................... 0.51%+ 0.54% 0.56% 0.60% 0.60% 0.60%
Ratio of net investment income to
average net assets................... 3.26%+ 3.06% 3.45% 2.33% 1.96% 2.56%
Ratio of expenses to average net
assets*.............................. 0.64%+ 0.64% 0.65% 0.70% 0.69% 0.86%
Ratio of net investment income to
average net assets*.................. 3.13%+ 2.96% 3.36% 2.23% 1.87% 2.29%
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
See Notes to Financial Statements.
140
<PAGE> 143
The Kent MICHIGAN MUNICIPAL MONEY MARKET FUND
Portfolios FINANCIAL HIGHLIGHTS
INVESTMENT SHARES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1997 1996 1995 1994 1993 1992(1)
---------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income................... 0.02 0.03 0.03 0.02 0.02 **
-------- -------- -------- -------- -------- --------
Less Dividends from:
Net investment income................... (0.02) (0.03) (0.03) (0.02) (0.02) --
-------- -------- -------- -------- -------- --------
Net change in net asset value............. -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return.............................. 1.62%++ 3.11% 3.48% 2.38% 1.98% 0.03%++
Ratios/Supplemental Data:
Net Assets, end of period (000's)......... $ 287 $ 782 $ 1,603 $ 379 $ 149 $ ***
Ratio of expenses to average net
assets................................ 0.51%+ 0.54% 0.54% 0.63% 0.63% 0.00%+
Ratio of net investment income to
average net assets.................... 3.20%+ 3.06% 3.48% 2.47% 2.01% 2.92%+
Ratio of expenses to average net assets
*..................................... 0.64%+ 0.64% 0.62% 0.73% 3.77% 0.00%+
Ratio of net investment income (loss) to
average net assets *.................. 3.07%+ 2.96% 3.39% 2.37% (1.13%) 2.92%+
</TABLE>
- ---------------
+ Annualized.
++ Not annualized.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as indicated.
** Amount is less than $0.005.
*** Amount is less than $1,000.
(1) The Investment Class date of initial public investment was December 15,
1992.
See Notes to Financial Statements.
141
<PAGE> 144
THE
KENT FUNDS(R)
P.O. Box 182201
Columbus, Ohio 43218-2201
KKF-1391 (8/97)
