<PAGE>
[LOGO OF KENT FUNDS]
KENT FUNDS
Semi-Annual
---------------
Report
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JUNE 30, 2000
EQUITY FUNDS
Kent Growth and Income Fund
Kent Index Equity Fund
Kent Large Company Growth Fund
Kent Small Company Growth Fund
Kent International Growth Fund
BOND FUNDS
Kent Income Fund
Kent Intermediate Bond Fund
Kent Short Term Bond Fund
MUNICIPAL BONDS FUNDS
Kent Tax-Free Income Fund
Kent Intermediate Tax-Free Fund
Kent Michigan Municipal Bond Fund
MONEY MARKET FUNDS
Kent Money Market Fund
Kent Government Money Market Fund
Kent Michigan Municipal Money Market Fund
<PAGE>
[LOGO Message to Shareholders]
Dear Kent Funds Shareholder:
Following is the Semi-Annual Report for the Kent Funds for the six months
ended June 30, 2000. The report contains the following features:
. Economic Outlook by Joseph T. Keating, Chief Investment Officer, Lyon
Street Asset Management Company
. Portfolio Reviews -- investment strategy, performance overview and outlook
for the coming months for each of the Kent Funds
. Schedules of Portfolio Investments -- summary of the holdings in each Fund
by industry
. Statements of Assets and Liabilities -- summary of the assets and
liabilities of each Fund
. Statements of Operations -- summary of operations and its effect on the
assets of each Fund
. Statements of Changes in Net Assets -- summary of changes in net assets
during the period
. Notes to Financial Statements
. Financial Highlights -- per share summary of activity affecting net asset
value
We appreciate the confidence you have placed in us and continue to focus on
providing our shareholders with good value and attractive potential for
growth. If you have any questions about your investments after reading this
report, please call the Kent Funds Shareholder Servicing Center at 1-800-633-
KENT (5368) between the hours of 8:00 a.m. and 9:00 p.m. EST.
We remain committed to sound investment principles and to providing you with
useful information that can help you make the most of your investments.
Sincerely,
/s/ James F. Duca, II
James F. Duca, II
President
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 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.
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 distributor for the Kent Funds is Kent Funds
Distributors, Inc.
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.
1
<PAGE>
Economic Outlook
I.REAL ECONOMIC ACTIVITY
A. A Slowdown? Yes!
The second quarter report on economic activity in the U.S. economy had some-
thing in it for everyone. The headline number of real gross domestic product
(GDP)/1/ growing at a 5.2 percent annual rate was well ahead of the consensus
outlook for growth in the 3.5 to 4.0 percent range and above the first quar-
ter's 4.8 percent growth rate. This number played into the hands of those ana-
lysts who believe little, if any, moderation in the economy's forward momentum
has resulted from the thirteen month-long campaign to tighten monetary policy
by the Federal Reserve. It raised the likelihood of another interest rate hike
at the next meeting of the Federal Open Market Committee on August 22, and
even led some analysts to worry about another rate hike in October in the
midst of the presidential election campaign.
Digging into the second quarter figures, however, signs of a slowing in the
economy's growth rate are evident; along with two events that gave a temporary
boost to the economy during the second quarter. Consumer spending, the largest
component of the GDP, slowed to a more moderate 3.0 percent growth rate, fol-
lowing a much stronger 7.6 percent gain in the first quarter and was the slow-
est quarterly growth pace in three years. A $21 billion higher rate of busi-
ness inventory accumulation added almost a full percentage point to the
economy's growth rate last quarter. A large part of it was likely involuntary
as the $24.6 billion increase in inventories at the retail level coincided
with the slowdown in consumer spending.
Likewise, a 17.5 percent surge in federal government spending accounted for a
full percentage point of the 5.2 percent second quarter growth rate and is
hardly the type of spending growth being budgeted by the federal government.
We believe the jump at the federal level was largely the result of hiring tem-
porary census workers and an acceleration in the procurement of motor vehi-
cles. In our opinion, removing those two special items from the data brings
the economy's growth rate last quarter into the 3.0 to 3.5 percent area, which
is a growth rate below what was the consensus outlook.
B. Consumer Spending More in Line with Income Growth.
While the slower pace of consumer spending was led by a 3.9 percent drop in
outlays for durable goods, the moderation in consumer outlays was across the
board. Spending finally came back into line with income growth (real dispos-
able personal income advanced at a 3.4 per
[GRAPH]
Year 2000
------------------
Economic Activity 1Q 2Q
----------------- ------ ------
Personal Consumption Expenditures* 7.6% 3.0%
Residential Construction Outlays* 3.2% 3.9%
Business Capital Spending* 21.0% 19.1%
Fedral Government Outlays* -14.2% 17.5%
* Annualized
-------------------------------------------------------------------------------
/1/Gross Domestic Product (GDP) is the market value of the goods and services
produced by labor and property in the United States. The GDP is made up of
consumer and government purchases, private domestic investments, and net
exports of goods and services.
This report is not personal investment advice. The information in this report
is obtained from sources believed to be reliable. However, Lyon Street Asset
Management Company and its affiliates do not guarantee or warrant the accuracy
or completeness of the information or its use, nor the effects of acting on
any of the opinions expressed in this report.
2
<PAGE>
cent annual rate) after consistently exceeding it for eight consecutive quar-
ters. The prior exuberance in consumer spending was largely fueled by the
wealth generated by the stock market's extraordinary gains over the past few
years. We feel the downturn in common stock prices during the second quarter
and the dramatic rise in volatility has left consumers feeling less wealthy
and less confident about future stock market gains. This caused the wealth
effect on consumption to wane and we expect this more dampened effect to lin-
ger. In addition, rising debt burdens finally may be helping to slow consumer
spending, with the ratio of consumer debt repayments to income at 13.6 percent
in the first quarter being the highest in twelve years.
[GRAPH]
Consumer Spending+
1Q 2Q
Durable Goods* 200 23.6% -3.9%
Nondurable Goods* 2000 6.0% 3.5%
Services* 2000 5.2% 4.2%
*Annualized
C. Housing Rolls Over.
The 3.9 percent gain in residential construction outlays last quarter at
first glance seemed very much at odds with other recent reports on housing
activity. These releases showed housing starts and building permits more than
fourteen percent below their peaks reached at the turn of the year and new
home sales more than eleven percent below their peak level late last year.
Looking inside the number, however, reveals that all of the advance in housing
outlays was contained in the home addition/remodeling category and that out-
lays on single and multifamily units actually fell slightly. The almost two
percentage point rise in mortgage rates since late 1998 is having an impact on
housing activity, along with the dampened wealth effect from the recent tur-
moil in the equity market.
[GRAPH]
Single-Family Housing Starts and Building Permits+
Housing Starts Building Permits
Oct 99 1,343 1,204
1,344 1,238
Dec 99 1,441 1,266
1,361 1,317
Feb 00 1,324 1,223
1,327 1,238
Apr 00 1,310 1,164
1,254 1,150
Jun 00 1,214 1,114
3
<PAGE>
Economic Outlook
D. Productivity Search Continues to Drive Business Capital Spending.
Business capital spending continues to lead the economy's growth rate, with
structure outlays up at a 13.0 percent rate and equipment purchases growing at
a 21.0 percent pace. Within the equipment sector, information processing
equipment and software--high tech business capital spending--surged at a 31.3
percent annual rate. Nearly thirty-eight percent of the increase in real GDP
came from business spending on computers and software, even though those prod-
ucts make up just 7.2 percent of the economy's total output.
[GRAPH]
Business Capital Spending+
Second Quarter 2000*
Business Capital Spending 19.1%
Equipment and Software 21.0%
Information Processing
Equipment and Software 31.3%
Industrial Equipment 16.5%
Structures 13.0%
*Annualized
Businesses have little leeway to pass along higher labor and material costs
to their customers due to the low inflation environment within which Corporate
America continues to operate. This has heightened the focus of managements on
improving efficiency and productivity through massive investments in high
technology equipment in order to grow earnings. The computer and software sec-
tor has grown at an 18.9 percent compound annual rate over the past nine and a
quarter years, compared to a 3.1 percent growth rate for the remainder of the
economy. Based on these dramatically different relative growth rates, the high
technology sector of the economy has grown from 2.0 percent of the economy in
1991 to 7.2 percent today.
We believe technology is rapidly becoming the single most important charac-
teristic that will differentiate companies in the future. It is our view that
the most successful companies are those that understand the power of the new
technologies, that adapt them to their particular corporate purposes, and that
integrate the new technologies most rapidly into their organizations to
improve their competitive positions. The Internet-driven phase of this spend-
ing boom is just beginning. Corporations are scrambling to reap the efficiency
gains from business-to-business e-commerce networks (bringing technology to
bear on the procurement or supply-chain management function) that barely
existed just six months ago.
E. More Moderate Growth Rate Will Lead to Even Longer Expansion.
Our review of the second quarter real GDP data shows an economy that is defi-
nitely slowing, particularly when one considers the slowdown in consumer
spending, the rollover in the housing market, and the nonrecurring special
items that boosted the economy's growth rate by two percentage points. The
composition of growth returned to a much healthier mix: much less consumer
spending and persistent strength in business capital spending, particularly
for computers and software. We believe high technology-led growth, given the
age of this expansion, is very favorable as it expands the economy's capacity
to produce and raises the economy's speed limit for noninflationary growth. In
our opinion the wealth effect on consumer spending and housing outlays is wan-
ing and the lagged effects from the increases in interest rates earlier this
year should continue to work their way through the economy during the next six
to nine months. It continues to be our view that the Federal Reserve will suc-
ceed in lengthening, not ending, the economic expansion and, with core infla-
tion remaining low, that the tightening cycle is rapidly coming to a conclu-
sion.
4
<PAGE>
Economic Outlook
II. INFLATION
A. Low Inflation Environment Alive and Well.
The moderation in the economy's core growth rate last quarter was accompanied
by continued low inflation readings. The self-reinforcing low inflation envi-
ronment that has been in place over the course of this business expansion is
alive and well based on the second quarter data.
[GRAPH]
Inflation Rates+
Second Quarter 2000*
1Q 2000 2Q 2000
Gross Domestic Purchases 3.8% 2.2%
GDP less food and energy 2.8% 1.8%
Consumer Spending 3.5% 2.3%
Business Capital Spending 1.8% 1.4%
Housing Outlays 5.2% 2.2%
*Annualized
Both the gross domestic purchases fixed weighted price index and its core
measure less food and energy measured a lower inflation rate in the second
quarter than in the first, as did all of the major sectors of the economy. The
lower inflation rate cannot be easily explained away by oil prices as the aver-
age price of oil in the first and second quarters was almost identical, within
three cents of each other. Pricing power remains anemic and productivity gains
continue to keep a lid on unit labor costs.
We feel benign inflation has certainly been the hallmark of the current busi-
ness expansion, save for the flare up in energy prices over the past year. In
no small part, this is due to the strong growth in productivity arising from
the explosion in business investment in high technology equipment, which so far
has forestalled the emergence of serious inflationary pressures arising from
the extremely tight labor market.
JOSEPH T. KEATING
President and Chief Investment Officer
+ The information contained herein is based on Commerce Department data
released July 28, 2000.
INVESTMENT ADVISER
Lyon Street Asset Management Company
111 Lyon Street N.W.
Grand Rapids, MI 49503
5
<PAGE>
Portfolio
Reviews
Kent Growth and Income Fund
By Allan J. Meyers
Portfolio Manager
4 star
Morningstar
rating
(among 3,642
domestic
equity funds
overall as of
6/30/00)+
The six-month period ended June 30, 2000 was characterized by strong economic
growth, low inflation and volatility in the stock market. The Federal Reserve
raised short-term interest rates a total of 100 basis points (1.0%) in an
attempt to slow the economy and prevent inflation from rising. Those rate hikes
were somewhat successful: retail sales growth ratcheted down, housing activity
slowed, and consumer confidence began to ebb.
Shares of technology companies surged during January and February, which
helped fuel a 27% gain in the Nasdaq Composite Index/1/ during that time. In
March, however, investors expressed concerns about the high valuations of such
shares, and sent the index tumbling. The Nasdaq ended the period down slightly
from the beginning of 2000.
The Fund's Institutional and Investment Shares returned -1.97% and -2.07%,
respectively, during the six months ended June 30, 2000. The Fund's benchmark,
the Standard & Poor's 500 Stock Index, produced a -0.43% return during the same
period.
Managing the Fund
Two sectors performed especially well during the period: health care rose 24%,
with companies such as Eli Lilly & Co. (1.00% of net assets) up 51% and Pfizer,
Inc. (2.51%) up 48.5% posting especially strong gains. Utilities were up 15.7%,
largely due to the rise in oil and natural gas prices. Despite significant vol-
atility, technology stocks ended the period up 4.5%. The worst performing sec-
tors included basic materials (down 29%) and consumer cyclicals (down 16%).*
[GRAPH]
Kent Growth and Income Fund
Distribution of net assets*
As of June 30, 2000
Technology 33.1%
Capital Goods 7.8%
Consumer Staples 10.3%
Consumer Cyclicals 7.3%
Other 4.6%
Communication Services 7.0%
Energy 5.4%
Health 11.7%
Financials 12.8%
During the period, we added positions in a number of stocks that offered
strong growth potential - including Veritas Software (0.35% of assets), Corning
Glass (0.59%), and Medtronics (0.34%). We also added to the Fund's position in
Nextel (0.36%).*
Looking ahead
Going forward, we expect the economy to grow at a moderate pace, with infla-
tion and unemployment rates remaining low. The Federal Reserve will continue to
keep a close eye on the economy and raise rates if necessary, although we do
not expect to see significant increases in the coming months. We will look for
opportunities in undervalued sectors of the market such as financial services,
consumer cyclicals, and basic materials. We believe technology stocks with
superior earnings growth also should continue to post above-average gains.
--------------------------------------------------------------------------------
/1/The Nasdaq Composite Index is a market capitalization price only index that
tracks the performance of domestic common stocks traded on the regular Nasdaq
market, as well as the National Market System-traded foreign common stocks and
American Depositary Receipts.
*The Fund's portfolio composition is subject to change.
+Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 6/30/00. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from a
fund's three-, five-, and ten-year returns (with fee adjustments) in excess of
90-day Treasury bill returns, and a risk factor that reflects fund performance
below 90-day Treasury bill returns. The Fund received 3 stars for the three-
year period and 4 stars for the five-year period. It was rated among 3,642 and
2,328 domestic equity funds for the three- and five-year periods for the
Investment and Institutional Class, respectively. The overall rating is a
weighted average of the three- and five-year rating. Ten percent of the funds
in a rating category receive 5 stars, 22.5% receive 4 stars, 35% receive 3
stars, 22.5% receive 2 stars and 10% receive 1 star.
6
<PAGE>
Kent Growth and Income Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 11/2/92) (Inception: 12/1/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 4.55% 4.32%
...............................................................................
Three Years 17.30% 17.02%
...............................................................................
Five Years 20.31% 20.02%
...............................................................................
Since Inception 17.70% 17.19%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Standard & Poor's 500 Stock Index
[GRAPH]
Institutional Class Shares
Kent Growth Standard &
And Income Poor's 500
Fund Institutional Stock
Class Shares Index
11/92 10,000 10,000
12/92 10,398 10,472
12/93 11,610 11,518
12/94 11,669 11,669
12/95 15,743 16,036
12/96 18,809 19,737
12/97 23,351 26,321
12/98 29,907 33,886
12/99 35,526 41,012
6/00 34,825 40,836
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Growth Standard &
and Income Poor's 500
Fund Investment Stock
Class Shares Index
12/1/92 $10,000 $10,000
12/31/92 $10,059 $10,472
12/93 $11,247 $11,518
12/94 $11,302 $11,669
12/95 $15,213 $16,036
12/96 $18,124 $19,737
12/97 $22,454 $26,321
12/98 $28,666 $33,886
12/99 $33,978 $39,676
6/00 $33,277 $39,505
-------------------------------------------------------------------------------
The Fund's performance is measured against the Standard & Poor's 500 Stock
Index, which is an unmanaged index that generally represents the performance
of the U.S. stock market as a whole. The index does not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fund does reflect the deduction of
fees for these value-added services. Investors cannot invest directly in an
index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Growth and Income Fund from 11/2/92 (Institutional Class
Shares) and 12/1/92 (Investment Class Shares) to 6/30/00, and represents the
reinvestment of dividends and capital gains in the Fund.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
7
<PAGE>
Portfolio
Reviews
Kent Index Equity Fund
By Brian Smolinski
Portfolio Manager
4 star
Morningstar
rating
(among 3,642
domestic
equity funds
overall as of
6/30/00)+
Strong economic growth, low inflation and stock market volatility character-
ized the recent six-month period ended June 30, 2000. The Federal Reserve
raised short-term interest rates several times during the period in an effort
to slow economic growth and prevent rising inflation. That policy appeared to
work, as the economy showed signs of slowing near the end of the period.
Small-company stocks, especially those in the tech sector, outperformed large-
cap stocks. Shares of technology and biotechnology companies posted extremely
strong gains during January and February, reflecting investors' belief that
tech companies' earnings would hold up well in a slower-growth environment. In
March, however, tech stocks suffered a serious correction largely due to con-
cerns over their high valuations. Many tech stocks declined by 50% to 75%. The
Fund's benchmark, the Standard & Poor's 500 Stock Index, experienced 25 addi-
tions and deletions, as merger and acquisition activity remained strong
throughout the period.
The Kent Index Equity Fund's Institutional and Investment Shares returned -
0.59% and -0.71%, respectively, for the six months ended June 30, 2000. The S&P
500 Index returned -0.43% for the period.
Strong and weak performers
The S&P 500's strongest performing sectors included energy (up 59% for the
period) and health care (up 42%). Stocks that posted sizeable gains included
Scientific Atlanta (0.09% of net assets) up 166.7%, Advanced Micro Devices
(0.09%) up 166.5% and Nabisco Group Holdings (0.07%) up 146.4%. The index's two
weakest performing sectors were basic materials (down 29%) and consumer
cyclicals (down 19.1%), which suffered in the rising rate environment.*
[GRAPH]
Kent Index Equity Fund
Distribution of net assets*
As of June 30, 2000
Technology 33.0%
Communication Services 6.8%
Consumer Staples 10.2%
Capital Goods 7.9%
Other 5.0%
Energy 5.4%
Consumer Cyclicals 7.4%
Health 11.6%
Financials 12.7%
Looking ahead
The Kent Index Equity Fund seeks to replicate the performance of the S&P 500
Index. We believe that the large-company shares that make up this index will
rebound during the next six months as economic growth slows to a more sustain-
able pace and the Federal Reserve comes to the end of its tightening cycle.
--------------------------------------------------------------------------------
*The Fund's portfolio composition is subject to change.
+Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 6/30/00. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from a
fund's three-, five-, and ten-year returns (with fee adjustments) in excess of
90-day Treasury bill returns, and a risk factor that reflects fund performance
below 90-day Treasury bill returns. The Fund received 3 stars for the three-
year and 4 stars for the five-year period (Investment Class) and 4 stars for
the three- and five-year period (Institutional Class). It was rated among 3,642
and 2,328 domestic equity funds for the three- and five-year periods,
respectively. The overall rating is a weighted average of the three- and five-
year rating. Ten percent of the funds in a rating category receive 5 stars,
22.5% receive 4 stars, 35% receive 3 stars, 22.5% receive 2 stars and 10%
receive 1 star.
8
<PAGE>
Kent Index Equity Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 11/2/92) (Inception: 11/25/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 6.78% 6.51%
...............................................................................
Three Years 19.22% 18.92%
...............................................................................
Five Years 23.18% 22.89%
...............................................................................
Since Inception 19.43% 18.98%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Standard & Poor's 500 Stock Index
[GRAPH]
Institutional Class Shares
Kent Index Standard &
Equity Fund Poor's 500
Institutional Stock
Class Shares Index
11/2/92 $10,000 $10,000
12/92 $10,440 $10,472
12/93 $11,390 $11,518
12/94 $11,488 $11,669
12/95 $15,648 $16,036
12/96 $19,119 $19,737
12/97 $25,342 $26,321
12/98 $32,503 $33,886
12/99 $39,183 $41,012
6/00 $38,954 $40,836
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Index Standard &
Equity Fund Poor's 500
Investment Stock
Class Shares Index
11/25/92 $10,000 $10,000
12/92 $10,185 $10,472
12/93 $11,111 $11,518
12/94 $11,194 $11,669
12/95 $15,199 $16,036
12/96 $18,531 $19,737
12/97 $24,505 $26,321
12/98 $31,347 $33,886
12/99 $37,694 $39,676
6/00 $37,426 $39,505
-------------------------------------------------------------------------------
The Fund's performance is measured against the Standard & Poor's 500 Stock
Index, which is an unmanaged index that generally represents the performance
of the U.S. stock market as a whole. The index does not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fund does reflect the deduction of
fees for these value-added services. Investors cannot invest directly in an
index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Index Equity Fund from 11/2/92 (Institutional Class
Shares) and 11/25/92 (Investment Class Shares) to 6/30/00, and represents the
reinvestment of dividends and capital gains in the Fund.
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. Total
return is based on changes in net asset value, assuming reinvestment of all
dividends and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
9
<PAGE>
Portfolio
Reviews
Kent Large Company Growth Fund
By Allan J. Meyers
Portfolio Manager
The stock market experienced considerable volatility during the recent period,
especially among shares of technology and biotechnology firms. Many technology
stocks surged as much as 75% during the first two months of 2000. In March,
however, many of these shares lost ground as the Nasdaq Composite Index/1/
plummeted 37%. Small-company stocks outperformed large-company shares during
the past six months, as investors were drawn by the attractive valuations of
many small-caps.
Continued strong economic growth caused the Federal Reserve to raise short-
term interest rates by 100 basis points (1.0%) in an effort to slow the economy
and forestall inflation. Those rate hikes began to have the desired effect by
the end of the period: retail sales slowed, housing activity waned, and con-
sumer confidence fell somewhat.
The Fund's Institutional and Investment Shares returned 0.39% and 0.28%,
respectively, during the six-month period. The Fund's benchmark, the Standard &
Poor's 500 Stock Index, posted a small loss of -0.43%.
Opportunities in health care and utilities
The best-performing sectors during the six-month period included health care
(up 24% for the period), utilities (up 16%), and technology, which posted a
positive gain of 4.5% despite the spring correction. The Fund was able to
increase positions in attractive stock, such as Johnson & Johnson (1.58% of net
assets) and Microsoft (3.99%), during the correction. The rising interest rate
environment hurt sectors such as communication services (down 16%), basic mate-
rials (down 29%) and consumer cyclicals (down 19%).*
[GRAPH]
Kent Large Company Growth Fund
Distribution of net assets*
As of June 30, 2000
Technology 39.3%
Communication Services 7.7%
Consumer Staples 10.9%
Consumer Cyclicals 6.8%
Capital Goods 7.4%
Other 4.4%
Health 14.2%
Financials 9.3%
The outlook
Recent signs show that the economy's forward momentum is slowing from its tor-
rid pace last year, and we expect to see more moderate growth during the coming
months. We anticipate that the Federal Reserve will continue to keep a close
eye on the economy and raise rates if necessary. Unemployment and inflation
will likely remain relatively low, which should benefit the performance of
large-company stocks with above average earnings growth.
--------------------------------------------------------------------------------
/1/The Nasdaq Composite Index is a market capitalization price only index that
tracks the performance of domestic common stocks traded on the regular Nasdaq
market, as well as the National Market System traded foreign common stocks and
American Depositary Receipts.
*The Fund's portfolio composition is subject to change.
10
<PAGE>
Kent Large Company Growth Fund
Aggregate Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 10/19/99) (Inception: 10/19/99)
------------------------------------------------------------
<S> <C> <C>
Since Inception 19.37% 19.21%
------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Standard & Poor's 500 Stock Index
[GRAPH]
Institutional Class Shares
Kent Large Company Growth Fund Standard & Poor's
Institutional Class Shares 500 Stock Index
10/19/99 10,000 10,000
10/31/99 10,850 10,622
11/30/99 11,196 10,851
12/31/99 11,891 11,488
1/31/2000 11,342 10,911
2/29/2000 11,203 10,704
3/31/2000 12,221 11,751
4/30/2000 11,771 11,398
5/31/2000 11,422 11,164
6/30/2000 11,937 11,439
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Large Company Growth Fund Standard & Poor's 500
Investment Class Shares Stock Index
10/19/99 10,000 10,000
10/31/99 10,840 10,622
11/30/99 11,184 10,851
12/31/99 11,887 11,488
1/31/2000 11,326 10,911
2/29/2000 11,196 10,704
3/31/2000 12,201 11,751
4/30/2000 11,760 11,398
5/31/2000 11,399 11,164
6/30/2000 11,921 11,439
-------------------------------------------------------------------------------
The Fund's performance is measured against the Standard & Poor's 500 Stock
Index, which is an unmanaged index that generally represents the performance
of the U.S. stock market as a whole. The index does not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fund does reflect the deduction of
fees for these value-added services. Investors cannot invest directly in an
index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Large Company Growth Fund from 10/19/99 to 6/30/00, and
represents the reinvestment of dividends and capital gains in the Fund.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
11
<PAGE>
Portfolio
Reviews
Kent Small Company Growth Fund+
By Robert Cummisford
Portfolio Manager
Small-company stocks performed exceptionally well during the six-month period
ended June 30, 2000. The Russell 2000 Index of small-capitalization stocks
outperformed the Standard & Poor's 500 Index/1/ by 3.7%. The best-performing
sectors included energy (up 59%), which was boosted by rising fuel prices, and
health care (up 41.9%). The worst performing sectors included communication
services and basic materials.
The Fund's Institutional and Investment Shares returned 6.79% and 6.67%,
respectively, for the six-month period ended June 30, 2000. The Russell 2000
gained 3.04% for the period.
Volatility in technology stocks
The six-month period began with big gains in technology stocks, especially
among shares of biotechnology firms: Many biotech stocks doubled or tripled in
less than a month. The Fund invests only in small-company stocks, and therefore
limits its investments to stocks with market capitalizations of $2 billion or
less. Thus, the rapid appreciation of many tech stocks prevented us from buying
them during the months of January and February. For that reason, the Fund
underperformed the Russell 2000 during the first two months of the year. In
March, however, the tech sector experienced a correction, and many stocks
declined 50% to 75%. We used that correction to buy shares of technology and
biotech firms that show potential for strong future growth.
The Fund outpaced the Russell 2000 during the period due to its investments in
the health care, technology, and capital goods sectors. Companies that per-
formed exceptionally well during the six-month period included laser manufac-
turer Coherent (0.74% of net assets) up 214%, computer hardware and software
developer Echelon (0.34%) up 196% and laboratory-testing company Quest Diagnos-
tics (0.88%) up 145%.*
[GRAPH]
-------------------------------------------------------------------------------
Kent Small Company Growth Fund
Distribution of net assets*
As of June 30, 2000
Financials 11.1%
Technology 34.8%
Communication Services 4.2%
Consumer Staples 4.7%
Consumer Cyclicals 11.2%
Other 9.2%
Capital Goods 10.8%
Healthcare 14.0%
-------------------------------------------------------------------------------
Looking ahead
We continue to be optimistic about several sectors in the small-cap arena,
including health care, telecommunications, technology and capital goods. We
believe that capital goods companies show especially strong promise. These com-
panies supply the components that technology firms use to make their products;
in our opinion, they stand to benefit from technology's growth. We will con-
tinue to look for opportunities among undervalued companies, and we believe
that the Fund is well positioned to benefit from a market environment that
favors small-company shares and value stocks.
--------------------------------------------------------------------------------
+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'
stock has experienced a greater degree of market volatility than average.
/1/The Standard & Poor's 500 Stock Index is an unmanaged index that generally
represents the performance of the U.S. stock market as a whole. Investors
cannot invest directly in an index, although they can invest in the underlying
securities.
*The Fund's portfolio composition is subject to change.
12
<PAGE>
Kent Small Company Growth Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 11/2/92) (Inception: 12/4/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 24.28% 23.99%
...............................................................................
Three Years 12.34% 12.09%
...............................................................................
Five Years 16.74% 16.45%
...............................................................................
Since Inception 15.87% 14.85%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Russell 2000 Index
[GRAPH]
Institutional Class Shares
Kent Small
Company Growth Russell
Fund Institutional 2000
Class Shares Index
11/2/92 $10,000 $10,000
12/92 $10,885 $11,140
12/93 $12,729 $13,246
12/94 $12,722 $13,005
12/95 $15,745 $16,704
12/96 $18,825 $19,466
12/97 $24,085 $23,819
12/98 $22,600 $23,212
12/99 $28,922 $28,147
6/00 $30,886 $29,003
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Small
Company Growth Russell
Fund Investment 2000
Class Shares Index
12/4/92 $10,000 $10,000
12/92 $10,197 $10,348
12/93 $11,915 $12,304
12/94 $11,906 $12,080
12/95 $14,702 $15,516
12/96 $17,518 $18,081
12/97 $22,372 $22,124
12/98 $20,937 $21,560
12/99 $26,743 $26,144
6/00 $28,526 $26,939
-------------------------------------------------------------------------------
The Fund's performance is measured against the Russell 2000 Index, which is an
unmanaged index that represents the performance of domestically traded common
stocks of small to mid-sized companies. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the Fund does reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Small Company Growth Fund from 11/2/92 (Institutional Class
Shares) and 12/4/92 (Investment Class Shares) to 6/30/00, and represents
reinvestment of dividends and capital gains in the Fund.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
13
<PAGE>
Portfolio
Reviews
Kent International Growth Fund+
By Dave Eder
Portfolio Manager
The Kent International Growth Fund underperformed the MSCI EAFE(R) (Europe,
Australasia and Far East) Index, (MSCI EAFE) during the six-month period ended
June 30, 2000. The Fund's Institutional and Investment Shares produced -5.38%
and -5.48% returns, respectively, during the period, while the MSCI EAFE Index
returned -4.06%.
Tough times for international stocks
The Fund spreads its investments among foreign markets, investing more in
countries with larger gross domestic products. The Fund typically holds shares
of the largest 100 companies in the EAFE Index, which account for approximately
60% of the index's market capitalization. That approach gives the Fund a large-
cap bias. The Fund remained slightly overweight in the Pacific Rim relative to
the index, ending the year with a weighting 2.5% higher than that of the index.
We maintained the Fund's underweight position in European shares; as of June
30, 2000, the Fund held 64.5% of net assets in Europe versus 66.6% for the
index.*
We executed three distinct strategies during the first six months of this
year. First, we underweighted the United Kingdom and redistributed those assets
into Japan, Germany and France, where we expected a rebound in economic growth.
Second, we continued to focus on large-cap stocks. That strategy hurt perfor-
mance during the period, as small-company stocks outperformed large company
stocks. Third, we continued to emphasize telecommunications and technology
stocks. While both of those sectors performed poorly during the first half of
2000, we are confident in their long-term prospects.
Europe posted negative returns for the six-month period--the first time in
five years that European shares have lost ground over a six-month period. In
particular, rising interest rates in Great Britain caused that country's econ-
omy to slow. Ireland was the worst performing market in Europe, posting a loss
of 17.8%. There were bright spots in the region, however: France climbed 6.0%
and Italy rose 3.9%.
[GRAPH]
------------------------------------------------------------------------------
Kent International Growth Fund
Distribution of net assets*
As of June 30, 2000
Other 17.5%
Germany 10.7%
France 12.0%
Netherlands 4.7%
Switzerland 5.4%
Italy 4.4%
United Kingdom 15.5%
Japan 29.8%
------------------------------------------------------------------------------
Markets in the Pacific Rim also performed poorly. Asian markets had a strong
year in 1999, climbing more than 50%. Investors, however, pulled back from
investing in Asian mutual funds during the first six months of 2000, as they
waited to see if economic and political reforms in that region would last. The
Fund's holding in countries such as Singapore (0.1% of net assets), down 22.7%,
and New Zealand (0.1%), down 6.7%, contributed to the Fund's underperformance.*
Optimistic about international conditions
Despite a lackluster first half of 2000, we believe the Fund is well posi-
tioned for strong results going forward. We anticipate that the economies in
Pacific Rim countries such as Japan will continue to strengthen as investors
see that reforms are taking effect. We also expect large-company stocks to
rebound and telecommunications technology companies to post more favorable
earnings and stock gains in the second half of this year.
--------------------------------------------------------------------------------
+International investing involves increased risk and volatility.
*The Fund's portfolio composition is subject to change.
14
<PAGE>
Kent International Growth Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 12/4/92) (Inception: 12/4/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 15.53% 15.28%
...............................................................................
Three Years 9.70% 9.42%
...............................................................................
Five Years 12.55% 12.25%
...............................................................................
Since Inception 12.41% 12.12%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Morgan Stanley Capital International MSCI
EAFE(R) (Europe, Australasia and Far East) Index, and the Morgan
Stanley Capital International (MSCI) Europe Index and
the Morgan Stanley Capital International (MSCI) Pacific Rim Index
[GRAPH]
Institutional Class Shares
Kent International MSCI EAFE(R) MSCI
Growth Fund (Europe, MSCI Pacific
Institutional Australasia Europe Rim
Class Shares and Far East) Index Index Index
12/4/92 $10,000 $10,000 $10,000 $10,000
12/92 $10,020 $10,054 $10,233 $ 9,887
12/93 $13,045 $13,367 $13,282 $13,444
12/94 $13,974 $14,444 $13,626 $15,195
12/95 $15,591 $16,113 $16,653 $15,650
12/96 $16,507 $17,138 $20,246 $14,335
12/97 $16,926 $17,443 $25,063 $10,681
12/98 $19,976 $20,989 $32,213 $10,942
12/99 $25,630 $26,648 $37,332 $17,248
6/00 $24,251 $25,566 $36,182 $16,206
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
MSCI EAFE(R)
Kent International (Europe, MSCI
Growth Fund Australasia MSCI Pacific
Investment and Far East Europe Rim
Class Shares Index Index Index
12/4/92 $10,000 $10,000 $10,000 $10,000
12/92 $10,010 $10,054 $10,233 $ 9,887
12/93 $13,006 $13,367 $13,282 $13,444
12/94 $13,723 $14,444 $13,626 $15,195
12/95 $15,487 $16,113 $16,653 $15,650
12/96 $16,350 $17,138 $20,246 $14,335
12/97 $16,719 $17,443 $25,063 $10,681
12/98 $19,661 $20,989 $32,213 $10,942
12/99 $25,156 $26,648 $37,332 $17,248
6/00 $23,779 $25,566 $36,182 $16,206
-------------------------------------------------------------------------------
The Fund's performance is measured against the Morgan Stanley Capital
International, MSCI EAFE(R) (Europe, Australasia and Far East) Index, which is
an unmanaged index that is comprised 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 Rim Index are representative of stocks in their
respective regions. 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. The indices do not
reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The performance of the Fund
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in the underlying
securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent International Growth Fund from 12/4/92 to 6/30/00, and
represents investment of dividends and capital gains in the Fund.
The Morgan Stanley Capital International (MSCI) indices measure performance
for a diverse range of developed country global stock markets including the
United States, Canada, Europe, Australia, New Zealand and the Far East. The
foundation of the various MSCI indices is a database of approximately 1,500
companies listed on the stock exchanges of the 24 countries for which there
are MSCI national indices. The indices are capitalization weighted.
Furthermore, companies included in the indices replicate the industry
composition of each local market and, in addition, represent samplings of
large-, medium- and small-capitalization companies from each local market,
taking into account the stocks' liquidity.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
15
<PAGE>
Portfolio
Reviews
Kent Income Fund
By Mitchell Stapley
Portfolio Manager
Yields on long-term bonds fell during the six-month period ended June 30,
2000. The large federal budget surplus allowed the U.S. Treasury to aggres-
sively buy back 30-year Treasury bonds, decreasing the supply of those issues.
Therefore, the yield on the 30-year Treasury declined from 6.50% to 5.90%.
Meanwhile, the spread increased between yields on Treasury instruments and
yields on agency and corporate debt.
The Fund's Institutional and Investment Shares returned 3.64% and 3.63%,
respectively, for the six months ended June 30, 2000.
Locking in Treasury gains
The strong performance of Treasury bonds helped the Fund's returns during the
period. We positioned the Fund's average maturity at 11.8 years at the begin-
ning of the period. That position benefited the Fund as Treasury yields fell.
We took advantage of the price gains in Treasury securities by selling some of
them and investing the profits in select high-quality corporate bonds and
agency securities. That approach allowed us to lock in high yields for share-
holders, since corporate and agency yields were higher relative to Treasury
securities than they had been since the early 1990s. Our selling of longer-term
Treasury instruments reduced the Fund's average maturity to 10.2 years as of
June 30. The Fund ended the period with 42.0% of its net assets in corporate
notes & bonds, 28.3% in agency obligations and 19.8% in Treasury issues.*
We focused on high-quality issues, which would protect shareholders' capital
in case of a slowing economy. We felt that the likely economic slowdown could
hurt the credit ratings of lower-quality corporate issues. Bonds with maturi-
ties of between 10-years and 30-years are especially vulnerable to such credit
fluctuations. The Fund's credit rating began the period at AA2 and ended the
period at AA1.*
[GRAPH]
Kent Income Fund
Distribution of net assets*
As of June 30, 2000
U.S. Government & Agency Issues 48.1%
Cash Equivalents Net Other Assets & Liabilities 9.9%
Corporate Notes & Bonds 42.0%
Kent Income Fund
SEC 30-Day Yields
As of June 30, 2000
<TABLE>
<S> <C>
Institutional Class....................... 6.50%
Investment Class.......................... 6.24%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 2000. Yield calculations represent past performance and will
fluctuate.
Certain fees were waived. Had these waivers not been in effect the 30-day SEC
yields would have been 6.49% for Institutional Shares and 6.23% for Investment
Shares.
--------------------------------------------------------------------------------
A neutral environment ahead
We expect an economic slowdown to occur during the next several months. A
slowing economy could reduce the likelihood of a rekindling of inflationary
pressures and lessen the need for the Federal Reserve to raise interest rates
materially further. That environment may lead to relatively stable yields for
the remainder of the year.
We will continue to focus on corporate bonds with high credit ratings. We
believe that approach should allow the Fund to lock in the high yields avail-
able on corporate issues, while avoiding the credit risks that sometimes result
from a slowing economy. We will also carefully monitor the U.S. Treasuries' buy
back program, and will likely capitalize on additional price gains in Treasury
instruments by selling them and reinvesting the proceeds in corporate and
Agency securities with higher yields.
--------------------------------------------------------------------------------
*The Fund's portfolio composition is subject to change.
16
<PAGE>
Kent Income Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 3/20/95) (Inception: 3/22/95)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 2.80% 2.54%
...............................................................................
Three Years 5.36% 5.08%
...............................................................................
Five Years 5.39% 5.17%
...............................................................................
Since Inception 6.48% 6.23%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Lehman Brothers Government/Credit Bond Index and the
Lehman Brothers Long Government/Credit Bond Index
[GRAPH]
Institutional Class Shares
Kent Income Lehman Brothers Lehman Brothers
Fund Long Government/ Government/
Institutional Credit Credit
Class Shares Bond Index Bond Index
3/20/95 $10,000 $10,000 $10,000
12/95 $11,506 $12,190 $11,358
12/96 $11,643 $12,207 $11,688
12/97 $12,828 $13,979 $12,871
12/98 $14,063 $15,624 $14,043
12/99 $13,443 $14,429 $14,098
6/00 $13,933 $15,032 $15,020
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Income Lehman Brothers Lehman Brothers
Fund Investment Long Government/ Government/
Class Credit Bond Credit Bond
Shares Index Index
3/22/95 $10,000 $10,000 $10,000
12/95 $11,464 $12,190 $11,358
12/96 $11,597 $12,207 $11,688
12/97 $12,779 $13,979 $12,871
12/98 $13,933 $15,624 $14,043
12/99 $13,270 $14,429 $14,098
6/00 $13,751 $15,032 $15,020
-------------------------------------------------------------------------------
The Fund's performance is measured against the Lehman Brothers
Government/Credit Bond Index and the Lehman Brothers Long Government/Credit
Bond Index which 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. The indices do not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the Fund does reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Income Fund from 3/20/95 (Institutional Class Shares) and
3/22/95 (Investment Class Shares) to 6/30/00, and represents the reinvestment
of dividends and capital gains in the fund.
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. Total
return is based on changes in net asset value, assuming reinvestment of all
dividends and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
17
<PAGE>
Portfolio
Reviews
Kent Intermediate Bond Fund
By Mitchell Stapley
Portfolio Manager
Yields on intermediate-term Treasury securities fell during the six-month
period from January 1, 2000, through June 30, 2000. That decline came as signs
of slowing economic growth reassured investors that inflation was in check and
the Federal Reserve would not raise interest rates materially further. More-
over, the federal budget surplus allowed the U.S. Treasury to issue fewer new
bonds; that decrease in supply helped push prices up and yields down on Trea-
sury securities. Corporate and agency issues underperformed Treasuries as
investors favored the liquidity of Treasury instruments. Treasury notes fell
from 6.45% at the start of the period to 6.10% on June 30, 2000.
The Kent Intermediate Bond Fund's Institutional and Investment Shares returned
3.09% and 2.95%, respectively. Those returns compared to a 3.22% return for the
Fund's benchmark, the Lehman Brothers Intermediate Government/Credit Bond
Index.
Locking in high yields
The Fund's average maturity began the period at 6.7 years, longer than the
benchmark's 4.5 year average maturity. That longer average maturity benefited
the Fund when the bond market rallied during the middle part of the period. We
sold some of the Fund's holdings with long maturities to lock in gains, reduc-
ing the average maturity to 6.0 years by the end of the period. We invested
that cash in agency securities and high-quality corporate bonds, which offered
an attractive yield premium over Treasury securities. We believe that strategy
helped to lock in additional yield for shareholders. The Fund held 44.7% of its
net assets in corporate notes and bonds, 31.6% in agency obligations, 21.7% in
Treasuries and the remainder in cash and equivalents as of June 30, 2000.*
We focused our corporate-bond investments on select high-quality issues. In
our opinion, that approach allowed us to lock in high yields without jeopardiz-
ing shareholders' principal. The Fund's credit rating began and ended the
period at AA1.*
[GRAPH]
Kent Intermediate Bond Fund
Distribution of net assets*
As of June 30, 2000
U.S. Government & Agency Issues 53.3%
Cash Equivalents Net Other Assets & Liabilities 2.0%
Corporate Notes & Bonds 44.7%
Kent Intermediate Bond Fund
SEC 30-Day Yields
As of June 30, 2000
<TABLE>
<S> <C>
Institutional Class....................... 6.56%
Investment Class.......................... 6.30%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 2000. Yield calculations represent past performance and will
fluctuate.
Certain fees were waived. Had these waivers not been in effect the 30-day SEC
yields would have been 6.55% for Institutional Shares and 6.29% for Investment
Shares.
--------------------------------------------------------------------------------
Going forward
We expect an economic slowdown, but not one that will lead to recession. A
slower pace of economic activity will likely allow the Federal Reserve to move
to a neutral monetary policy sometime during the next six months. Such a policy
could leave bond yields relatively unchanged for the remainder of the year. In
that environment, we believe our investments in high-yielding corporate and
agency issues could help the Fund's performance, while providing attractive
levels of income to shareholders.
--------------------------------------------------------------------------------
*The Fund's portfolio composition is subject to change.
18
<PAGE>
Kent Intermediate Bond Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 11/2/92) (Inception: 11/25/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 3.57% 3.30%
...............................................................................
Three Years 4.82% 4.59%
...............................................................................
Five Years 5.03% 4.78%
...............................................................................
Since Inception 5.41% 5.18%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Lehman Brothers Intermediate Government/Credit Bond Index
[GRAPH]
Kent Intermediate Bond Fund Lehman Brothers Intermediate
Institutional Class Shares Government/Credit Bond Index
11/2/92 $10,000 $10,000
12/92 $10,125 $10,095
12/93 $10,934 $10,976
12/94 $10,585 $10,762
12/95 $12,298 $12,410
12/96 $12,667 $12,913
12/97 $13,655 $13,929
12/98 $14,699 $15,105
12/99 $14,519 $15,164
6/00 $14,967 $15,652
-------------------------------------------------------------------------------
[GRAPH]
Kent Intermediate Bond Fund Lehman Brothers Intermediate
Investment Class Shares Government/Credit Bond Index
11/25/92 10,000 10,000
12/92 10,050 10,134
12/93 10,873 11,018
12/94 10,545 10,803
12/95 12,207 12,457
12/96 12,544 12,962
12/97 13,500 13,982
12/98 14,448 15,162
12/99 14,252 15,221
6/00 14,672 15,711
-------------------------------------------------------------------------------
The Fund's performance is measured against the Lehman Brothers Intermediate
Government/Credit Bond Index, which 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. The index does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Fund does reflect the deduction of fees for these value-
added services. Investors cannot invest directly in an index, although they
can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of a
$10,000 in the Kent Intermediate Bond Fund from 11/2/92 (Institutional Class
Shares) and 11/25/92 (Investment Class Shares) to 6/30/00, and represents the
reinvestment of dividends and capital gains in the Fund.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
19
<PAGE>
Portfolio
Reviews
Kent Short Term Bond Fund
By Mitchell Stapley
Portfolio Manager
4 star
Morningstar
rating
(among 1,684
fixed income
funds overall
as of
6/30/00)+
The six-month period ended June 30, 2000 was characterized by a great deal of
volatility in the financial markets as investors expressed uncertainty about
the strength of the economy and the direction of monetary policy. The yield on
the two-year Treasury note began the period at 6.20%, rose to 6.90% during the
period, and then fell back to 6.20% as of June 30, 2000.
During the first part of the period, investors were concerned that strong eco-
nomic growth would force the Federal Reserve to raise interest rates aggres-
sively in order to hold off inflation. The Federal Reserve did raise rates
three times, pushing up yields on short-term securities by a full percentage
point. Those rate hikes, combined with several earlier tightening moves, seemed
to have the desired effect during the second half of the period: the economy
showed signs of slowing, and the potential for a resurgence in inflationary
pressures eased. The combination of slower growth and a benign inflationary
environment reassured investors that the Federal Reserve would not raise rates
again in the short term, causing bond yields to fall.
The Fund's Institutional and Investment Shares returned 2.81% and 2.84%,
respectively. That compared to a 3.00% return for the Fund's benchmark, the
Lehman Brothers 1-3-Year Government Bond Index.
Locking in high yields
We maintained an average maturity slightly longer than that of the Fund's
benchmark in order to take advantage of the higher yields available on some
longer-term Treasury and agency issues and corporate bonds. The Fund's average
maturity began at 2.2 years and ended the period at 2.0 years, compared to 1.8
years for the benchmark.*
Yields on agency bonds were pushed higher by investors' fears that Congress
might revoke some of the privileges enjoyed by government service enterprises.
We felt that those higher yields provided good investment opportunities. Even
without government backing, government agencies have the highest possible
credit rating, making them relatively safe investments.
The difference in yield between corporate bonds and Treasury notes widened
during the period, creating opportunities among select corporate bonds. We
focused on high-quality corporate bonds in order to help protect shareholders'
assets, while we locked in extra yield by investing in bonds with relatively
long maturities. Corporate bonds
[GRAPH]
Kent Short Term Bond Fund
Distribution of net assets*
As of June 30, 2000
U.S. Government & Agency Issues 22.1%
Cash Equivalents Net Other Assets & Liabilities 2.9%
Corporate Notes & Bonds 75.0%
Kent Short Term Bond Fund
SEC 30-Day Yields
As of June 30, 2000
<TABLE>
<S> <C>
Institutional Class....................... 6.59%
Investment Class.......................... 6.43%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 2000. Yield calculations represent past performance and will
fluctuate.
Certain fees were waived. Had these waivers not been in effect the 30-day SEC
yields would have been 6.58% for Institutional Shares and 6.32% for Investment
Shares.
--------------------------------------------------------------------------------
made up 75% of the Fund's net assets as of June 30, 2000, agency issues com-
prised 22.1% of assets, with the remainder in cash and equivalents. The Fund's
credit rating began and ended the period at AA3.*
Looking ahead
We expect the economy to slow going forward, reducing the potential for infla-
tion and the likelihood that the Federal Reserve will further raise interest
rates. The federal budget surplus is allowing the U.S. Treasury to issue fewer
bonds. The lack of Treasury issuance may lead to increased demand for agency
and corporate debt, potentially boosting prices and lowering yields on such
issues. We will continue to look for opportunities to lock in attractive
yields, while maintaining a high credit quality to help protect shareholders'
assets.
--------------------------------------------------------------------------------
*The Fund's portfolio composition is subject to change.
+Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 6/30/00. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from a
fund's three-, five-, and ten-year returns (with fee adjustments) in excess of
90-day Treasury bill returns, and a risk factor that reflects fund performance
below 90-day Treasury bill returns. The Fund received 5 stars for the three-
year and 4 stars for the five-year period for the Investment and Institutional
Class, respectively. It was rated among 1,684 and 1,287 fixed income funds for
the three- and five-year periods respectively. The overall rating is a weighted
average of the three- and five-year rating. Ten percent of the funds in a
rating category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars,
22.5% receive 2 stars and 10% receive 1 star.
20
<PAGE>
Kent Short Term Bond Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 11/2/92) (Inception: 12/4/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 4.46% 4.41%
...............................................................................
Three Years 5.08% 4.98%
...............................................................................
Five Years 5.20% 5.05%
...............................................................................
Since Inception 4.88% 4.75%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Lehman Brothers 1-3-Year Government Bond Index, the
Consumer Price Index and the 91-Day Treasury Bill
[GRAPH]
Kent Lehman
Short Term Brothers
Bond Fund 1-3 Year Consumer 91-Day
Institutional Government Price Treasury
Class Shares Bond Index Index Bill
11/2/92 $10,000 $10,000 $10,000 $10,000
12/92 $10,087 $10,078 $9,992 $10,053
12/93 $10,395 $10,621 $10,267 $10,356
12/94 $10,502 $10,675 $10,542 $10,798
12/95 $11,608 $11,872 $10,809 $11,393
12/96 $12,098 $12,430 $11,213 $11,965
12/97 $12,875 $13,626 $11,404 $12,593
12/98 $13,663 $14,517 $11,580 $13,160
12/99 $14,005 $14,947 $11,926 $13,784
6/00 $14,399 $15,395 $12,145 $14,175
-------------------------------------------------------------------------------
[GRAPH]
Kent Short Term Lehman Brothers
Bond Fund 1-3 Year Consumer 91-Day
Investment Government Price Treasury
Class Shares Bond Index Index Bill
11/2/92 $10,000 $10,000 $10,000 $10,000
12/92 $10,030 $10,078 $9,992 $10,053
12/93 $10,335 $10,621 $10,267 $10,356
12/94 $10,439 $10,675 $10,542 $10,798
12/95 $11,514 $11,832 $10,809 $11,393
12/96 $11,982 $12,430 $11,213 $11,965
12/97 $12,732 $13,626 $11,404 $12,593
12/98 $13,495 $14,517 $11,580 $13,160
12/99 $13,812 $14,970 $11,909 $13,749
6/00 $14,205 $15,419 $12,128 $14,139
-------------------------------------------------------------------------------
The Fund's performance is measured against the Lehman Brothers 1-3-Year
Government Bond Index, which is an unmanaged index comprised 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 the price increases in a standardized
"market basket" of consumer products. The indices do not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Fund does reflect the deduction of
fees for these value-added services. Investors cannot invest directly in an
index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Short Term Bond Fund from 11/2/92 (Institutional Class
Shares) and 12/4/92 (Investment Class Shares) to 6/30/00, and represents the
reinvestment of dividends and capital gains in the Fund.
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. Total
return is based on changes in net asset value, assuming reinvestment of all
dividends and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
21
<PAGE>
Portfolio
Reviews
Kent Tax-Free Income Fund+
By Michael Martin
Portfolio Manager
The performance of the municipal bond market fluctuated considerably during
the first six months of 2000. Overall, yields on municipal bonds with maturi-
ties longer than 10 years declined, while shorter-term muni bond yields rose.
Municipal bond yields rose during January and February, fueled by concerns
that extremely strong economic growth would force the Federal Reserve to raise
interest rates in a material manner to forestall inflation. The municipal
fixed-income market rallied in March and early April, when economic data sug-
gested that the economy might be slowing. The environment changed in April,
however, due to signs that the economy was growing faster than expected.
Investors interpreted that data to mean that the Federal Reserve would raise
rates again, and yields increased from April 11 until May 24.
The Federal Reserve did indeed raise short-term interest rates by 50 basis
points (0.50%) at its meeting in May. That increase was the catalyst for a
rally in the fixed-income markets, as economic reports again signaled that the
economy was slowing. The yield on a thirty-year AAA-rated municipal security
stood at 5.72% at the end of June, down from 5.94% in January.
Retail investor demand for municipal bonds was strong during the period, due
to volatility in the stock market. Meanwhile, the volume of new municipal
issues fell 22% versus the comparable period in 1999. That situation is the
result of a decline in refunding activity, down 68% from one year ago.
The Fund's Institutional and Investment Shares returned 4.59% and 4.45%,
respectively, for the six months through June 30, 2000. That compared to a
4.48% total return for the Lehman Brothers Municipal Bond Index.
Managing the Fund
We managed the Fund's average maturity throughout the period as market condi-
tions changed. We increased the Fund's average maturity from 14.4 years in Jan-
uary to 15.4 years in February to take advantage of weakness in the market and
capture additional yield. We reduced the Fund's average maturity in April as
the municipal market rallied, before raising it again to take advantage of fur-
ther market weakness. The Fund's average maturity stood at 14.9 years at the
end of the period.*
[GRAPH]
Kent Tax-Free Income Fund
Distribution of net assets*
As of June 30, 3000
East 16.1%
Other 2.7%
Mountain 11.7%
Pacific 11.6%
South 17.5%
North Central 40.4%
Kent Tax-Free Income Fund
SEC 30-Day Yields
As of June 30, 2000
<TABLE>
<S> <C>
Institutional Class....................... 4.66%
Investment Class.......................... 4.40%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 2000. Yield calculations represent past performance and will
fluctuate.
Certain fees were waived. Had these waivers not been in effect the 30-day SEC
yields would have been 4.65% for Institutional Shares and 4.39% for Investment
Shares.
--------------------------------------------------------------------------------
The Fund maintained a high average credit quality of AA during the period. We
continue to believe that lower-quality securities do not provide enough extra
yield to justify their additional risk.*
The Outlook
It appears that the Federal Reserve took the appropriate steps to slow the
economy without sending it into a recession. However, the Federal Reserve will
likely monitor carefully the rate of economic growth and inflation during the
rest of 2000. We believe inflation will remain tame during 2000, and that bonds
will therefore remain an attractive investment.
We will maintain our disciplined strategy of buying into weakness and selling
into strength. We will attempt to take advantage of any rise in yields to help
lock in additional income for shareholders, and will focus on high-quality
municipal bonds.
--------------------------------------------------------------------------------
+The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
*The Fund's portfolio composition is subject to change.
22
<PAGE>
Kent Tax-Free Income Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 3/20/95) (Inception: 3/31/95)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 3.03% 2.77%
...............................................................................
Three Years 4.16% 3.89%
...............................................................................
Five Years 5.12% 4.87%
...............................................................................
Since Inception 5.25% 5.01%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Lehman Brothers Municipal Bond Index
[GRAPH]
Institutional Class Shares
Kent Tax-Free Lehman Brothers
Income Fund Municipal
Institutional Bond
Class Shares Index
3/20/95 $10,000 $10,000
12/95 $10,860 $10,971
12/96 $11,290 $11,457
12/97 $12,261 $12,511
12/98 $12,957 $13,242
12/99 $12,534 $12,969
6/00 $13,109 $13,550
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Tax-Free Lehman Brothers
Income Fund Municipal
Investment Bond
Class Shares Index
3/20/95 $10,000 $10,000
12/95 $10,834 $10,971
12/96 $11,217 $11,457
12/97 $12,150 $12,511
12/98 $12,809 $13,242
12/99 $12,373 $12,969
6/00 $12,923 $13,550
-------------------------------------------------------------------------------
The Fund's performance is measured against the Lehman Brothers Municipal Bond
Index, which is an unmanaged index comprised of general obligation municipal
debt instruments. The index does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees.
The performance of the Fund does reflect the deduction of fees for these
value-added services. Investors cannot invest directly in an index, although
they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Tax-Free Income Fund from 3/20/95 (Institutional Class
Shares) and 3/31/95 (Investment Class Shares) to 6/30/00, and represents the
reinvestment of dividends and capital gains in the Fund.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
23
<PAGE>
Portfolio
Reviews
Kent Intermediate Tax-Free Fund+
By Michael Martin
Portfolio Manager
4 star
Morningstar
rating
(among 1,688
municipal bond
funds overall
as of
6/30/00)++
The municipal bond market experienced significant volatility during the first
six months of 2000. Overall, yields rose on municipal bonds with maturities
shorter than 10 years, while yields on longer-term municipal issues fell.
Municipal bond yields rose during January and February, as investors worried
that extremely strong economic growth would force the Federal Reserve to raise
interest rates materially higher in order to hold off inflation. March and
early April saw a rebound in the fixed-income markets, as investors were
encouraged by economic data suggesting that the economy might be slowing. The
rebound in municipal prices stalled in April, however, as new data showed that
economic growth was still strong. Investors worried that the Federal Reserve
would be forced to raise short-term interest rates numerous times, and yield
rose from April 11 until May 24.
The Federal Reserve did raise rates by 50 basis points (0.50%) in May. The
cumulative rise in interest rates and the decline in common stock prices com-
bined to slow the economy, resulting in a bond market rally late in the period.
The yield on a ten-year AAA-rated municipal security fell to 5.00% at the end
of June, from 5.29% in January.
Investor demand for municipal bonds was strong during the period, as investors
pulled money out of the volatile stock market. At the same time new issuance
decreased: the volume of new municipal issues fell 22% compared to the first
half of 1999. That decline occurred largely due to a fall-off in refunding
activity, which was down 68% from one year ago.
The Fund's Institutional and Investment Shares returned 3.37% and 3.24%,
respectively, for the six months through June 30, 2000. That compared to a
2.39% return for the Lehman Brothers Three-Year General Obligation Municipal
Bond Index.
Managing average maturity
We adjusted the Fund's average maturity throughout the period to take advan-
tage of changing market conditions. We increased the Fund's average maturity
from 8.1 years in January to 8.6 years in March to take advantage of weakness
in the market and capture additional yield. We lowered the Fund's average matu-
rity in May into the rally, before raising it again to take advantage of the
market's weakness. The Fund's average maturity stood at 7.7 years at the end of
the period.*
The Fund maintained a high average credit quality of AA during the period, as
we believe that lower-quality securities do not currently provide extra yield
to justify their additional risk. We found opportunities among select high-
quality specialty state issues. For example, we purchased AA+-rated Clay County
Missouri Public Schools bonds with a 6.25% coupon due in 2017 (0.75% of the net
assets).*
[GRAPH]
Kent Intermediate Tax-Free Fund
Distribution of net assets*
As of June 30, 2000
South 20.0%
Pacific 15.0%
Mountain 8.8%
Other 2.4%
East 11.9%
North Central 41.9%
Kent Intermediate Tax-Free Fund
SEC 30-Day Yields
As of June 30, 2000
<TABLE>
<S> <C>
Institutional Class....................... 4.36%
Investment Class.......................... 4.12%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 2000. Yield calculations represent past performance and will
fluctuate.
Certain fees were waived. Had these waivers not been in effect the 30-day SEC
yields would have been 4.35% for Institutional Shares and 4.11% for Investment
Shares.
--------------------------------------------------------------------------------
Going forward
The Federal Reserve appears to have taken the appropriate steps to slow the
economy without causing a recession. However, we expect the Federal Reserve to
monitor carefully the rate of economic growth and inflation during the rest of
2000, with an eye toward raising rates if the economy appears to resume its
strong growth. We believe inflation will stay low during the remainder of the
year, and therefore we feel that bonds should remain an attractive investment.
We will continue our strategy of buying when the market is weak and selling
when the market is strong. We will take advantage of any yield increases to
help lock in additional income for shareholders, and will focus on high-quality
municipal bonds.
--------------------------------------------------------------------------------
+The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
*The Fund's portfolio composition is subject to change.
++Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 6/30/00. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from a
fund's three-, five-, and ten-year returns (with fee adjustments) in excess of
90-day Treasury bill returns, and a risk factor that reflects fund performance
below 90-day Treasury bill returns. The Fund received 4 stars for the three-
and five-year periods (Investment Class) and received 5 stars for the three-
year period and 4 stars for the five-year period (Institutional Class). It was
rated among 1,688 and 1,447 municipal bond funds for the three- and five-year
periods, respectively. The overall rating is a weighted average of the three-
and five-year rating. Ten percent of the funds in a rating category receive 5
stars, 22.5% receive 4 stars, 35% receive 3 stars, 22.5% receive 2 stars and
10% receive 1 star.
24
<PAGE>
Kent Intermediate Tax-Free Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 12/16/92) (Inception: 12/18/92)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 3.50% 3.14%
...............................................................................
Three Years 4.07% 3.81%
...............................................................................
Five Years 4.65% 4.40%
...............................................................................
Since Inception 4.81% 4.60%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Lehman Brothers Three-Year General Obligation Municipal
Bond Index and the Lehman Brothers Five-Year General Obligation Municipal Bond
Index
[GRAPH]
Institutional Class Shares
Kent Intermediate Lehman Brothers Lehman Brothers
Tax-Free Fund Three-Year General Five-Year General
Institutional Obligation Obligation
Class Municipal Bond Municipal Bond
Shares Index Index
12/16/92 $10,000 $10,000 $10,000
12/92 $10,060 $10,300 $10,500
12/93 $10,895 $10,673 $10,930
12/94 $10,567 $10,755 $10,779
12/95 $11,941 $11,705 $12,032
12/96 $12,349 $12,243 $12,589
12/97 $13,222 $12,905 $13,406
12/98 $13,929 $13,572 $13,521
12/99 $13,788 $13,833 $14,290
6/00 $14,253 $14,164 $14,689
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Intermediate Lehman Brothers Lehman Brothers
Tax-Free Fund Three-Year General Five-Year General
Investment Obligation Municipal Obligation Municipal
Class Shares Bond Index Bond Index
12/18/92 $10,000 $10,000 $10,000
12/92 $10,040 $10,200 $10,600
12/93 $10,873 $10,673 $10,930
12/94 $10,543 $10,755 $10,779
12/95 $11,889 $11,705 $12,032
12/96 $12,266 $12,243 $12,581
12/97 $13,100 $12,905 $13,406
12/98 $13,765 $13,572 $13,521
12/99 $13,591 $13,833 $14,290
6/00 $14,032 $14,164 $14,689
-------------------------------------------------------------------------------
The Fund's performance is measured against the Lehman Brothers Three-Year
General Obligation Municipal Bond Index and the Lehman Brothers Five-Year
General Obligation Municipal Bond Index, both of which are unmanaged indices
comprised of debt instruments issued by municipalities. The indices do not
reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The performance of the Fund
does reflect the deduction of fees for these value-added services. Investors
cannot invest directly in an index, although they can invest in the underlying
securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Intermediate Tax-Free Fund from 12/16/92 (Institutional
Class Shares) and 12/18/92 (Investment Class Shares) to 6/30/00, and
represents the reinvestment of dividends and capital gains in the Fund.
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. Total
return is based on changes in net asset value, assuming reinvestment of all
dividends and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
25
<PAGE>
Portfolio
Reviews
Kent Michigan Municipal Bond Fund+,++
By Michael Martin
Portfolio Manager
4 star
Morningstar
rating
(among 1,688
municipal bond
funds overall
as of
6/30/00)/1/
The municipal bond market was characterized by a great deal of volatility dur-
ing the first six months of 2000. Overall, yields rose on municipal bonds with
maturities shorter than 10 years, while yields fell on longer-term munis.
Municipal bond yields rose during January and February, as investors worried
that the Federal Reserve would raise interest rates in a material manner to
slow the economy and forestall inflation. The market rebounded in March and
early April, as new data suggested that the economy might be slowing. That
recovery stalled in April, as the strength of the economy again asserted
itself. Investors again worried that the Federal Reserve would have to raise
short-term interest rates, and yields rose through May.
The Federal Reserve did indeed raise rates by 50 basis points (0.50%) in May.
Investors believed the rate hike would slow the economy and lower the need for
further significant increases, and the bond markets subsequently rallied. The
yield on a five-year AAA-rated municipal security fell to 4.74% at the end of
June, down from 5.13% in May.
The Fund's Institutional and Investment Shares returned 2.23% and 2.16%,
respectively, for the six months through June 30, 2000. That compared to a
2.39% return for the Lehman Brothers Three-Year General Obligation Municipal
Bond Index.
Adding yield
We took advantage of changing market conditions throughout the period,
extending the Fund's average maturity when the market weakened and shortening
it when the market rallied. The Fund's average maturity during the period
ranged from a high of 4.21 years to a low of 3.33 years. It stood at 3.57 years
at the end of the period.*
The Fund's credit quality was high during the period, at AA. We continue to
believe that lower-quality securities currently do not provide enough extra
yield to justify their additional risk. We looked to buy municipal issues with
attractive yields and high credit qualities; for example, we purchased Grand
Rapids and Kent County UTGO Michigan (0.65% of net assets) bonds with a 5.50%
coupon due in 2009.*
[GRAPH]
Kent Michigan Municipal Bond Fund
Distribution of Net Assets*
As of June 30, 2000
Cash Equivalents Net Other Assets & Liabilites 0.6%
Municipal Securities 99.4%
Kent Michigan Municipal Bond Fund
SEC 30-Day Yields
As of June 30, 2000
<TABLE>
<S> <C>
Institutional Class....................... 4.27%
Investment Class.......................... 4.12%
</TABLE>
SEC 30-day yield is computed based on net income during the 30-day period ended
June 30, 2000. Yield calculations represent past performance and will
fluctuate.
Certain fees were waived. Had these waivers not been in effect the 30-day SEC
yields would have been 4.26% for Institutional Shares and 4.01% for Investment
Shares.
--------------------------------------------------------------------------------
The Outlook
The economy of Michigan continues to enjoy the benefits of the strong national
economy. The state's unemployment rate stands at 3.2%, compared to a national
average of 4.0%. The primary drive in the Michigan economy continues to be the
strength of the automotive sector.
We intend to extend the average maturity of the portfolio when market condi-
tions provide the opportunity. As always, we will look to buy when the market
is weak and sell when the market is strong. We will also maintain the Fund's
high credit quality, in order to help protect shareholders' principal.
--------------------------------------------------------------------------------
+The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
++Regional funds may be subject to additional risk, since the companies they
invest in are located in one geographical location.
*The Fund's portfolio composition is subject to change.
/1/Morningstar proprietary ratings reflect historical risk-adjusted performance
as of 6/30/00. The ratings are subject to change every month. Past performance
is no guarantee of future results. Morningstar ratings are calculated from a
fund's three-, five-, and ten-year returns (with fee adjustments) in excess of
90-day Treasury bill returns, and a risk factor that reflects fund performance
below 90-day Treasury bill returns. The Fund received 5 stars for the three-
year period and 4 stars for the five-year period for the Institutional and
Investment Class. It was rated among 1,688 and 1,447 municipal bond funds for
the three- and five-year periods, respectively. Ten percent of the funds in a
rating category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars,
22.5% receive 2 stars and 10% receive 1 star.
26
<PAGE>
Kent Michigan Municipal Bond Fund
Average Annual Returns as of June 30, 2000
<TABLE>
<CAPTION>
Institutional Class Investment Class
(Inception: 5/3/93) (Inception: 5/11/93)
-------------------------------------------------------------------------------
<S> <C> <C>
One Year 2.99% 2.83%
...............................................................................
Three Years 3.68% 3.54%
...............................................................................
Five Years 4.02% 3.87%
...............................................................................
Since Inception 3.93% 3.76%
-------------------------------------------------------------------------------
</TABLE>
Growth of a $10,000 Investment
As compared with the Lehman Brothers Three-Year General
Obligation Municipal Bond Index
[GRAPH]
Institutional Class Shares
Kent Michigan Lehman Brothers
Municipal Bond Fund Three-Year General
Institutional Obligation Municipal
Class Shares Bond Index
5/3/93 $10,000 $10,000
12/93 $10,300 $10,311
12/94 $10,340 $10,390
12/95 $11,190 $11,308
12/96 $11,580 $11,828
12/97 $12,222 $12,468
12/98 $12,802 $13,113
12/99 $12,887 $13,365
6/00 $13,175 $13,684
-------------------------------------------------------------------------------
[GRAPH]
Investment Class Shares
Kent Michigan Lehman Brothers
Municipal Bond Three-Year General
Fund Investment Obligation Municipal
Class Shares Bond Index
5/11/93 $10,000 $10,000
12/93 $10,285 $10,311
12/94 $10,301 $10,390
12/95 $11,126 $11,308
12/96 $11,500 $11,828
12/97 $12,119 $12,468
12/98 $12,676 $13,113
12/99 $12,741 $13,365
6/00 $13,016 $13,684
-------------------------------------------------------------------------------
The Fund's performance is measured against the Lehman Brothers Three-Year
General Obligation Municipal Bond Index, which is an unmanaged index comprised
of debt instruments issued by municipalities. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the Fund does reflect the
deduction of fees for these value-added services. Investors cannot invest
directly in an index, although they can invest in the underlying securities.
The chart represents historical performance of a hypothetical investment of
$10,000 in the Kent Michigan Municipal Bond Fund from 5/3/93 (Institutional
Class Shares) and 5/11/93 (Investment Class Shares) to 6/30/00, and represents
the reinvestment of dividends and capital gains in the Fund.
Past performance is no guarantee of future results. 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. Total return is
based on changes in net asset value, assuming reinvestment of all dividends
and capital gain distributions.
During various periods reflected in the graphs above certain fees were waived.
27
<PAGE>
Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (98.5%):
Advertising (0.1%):
26,400 Interpublic Group Cos., Inc.......................... $ 1,135,200
------------
Aerospace & Defense (0.6%):
54,425 Boeing Co. .......................................... 2,275,645
60,475 Honeywell International, Inc......................... 2,037,252
24,975 Lockheed Martin Corp. ............................... 619,692
------------
4,932,589
------------
Applications Software (0.0%):
11,525 Citrix Systems, Inc.*................................ 218,255
------------
Auto/Truck -- Original Equipment (0.1%):
18,450 Dana Corp............................................ 390,909
40,525 Delphi Automotive Systems Corp. ..................... 590,146
10,056 Visteon Corp.*....................................... 121,925
------------
1,102,980
------------
Auto/Truck -- Replacement Equipment (0.1%):
23,825 Genuine Parts Co. ................................... 476,500
------------
Automotive (0.7%):
76,800 Ford Motor Co. ...................................... 3,302,400
45,700 General Motors Corp. ................................ 2,653,456
------------
5,955,856
------------
Banks -- Major Regional (2.8%):
57,700 Bank of New York Co., Inc. .......................... 2,683,050
71,525 Bank One Corp. ...................................... 1,899,883
10,500 Comerica, Inc. ...................................... 471,188
61,450 First Union Corp. ................................... 1,524,728
67,000 FleetBoston Financial Corp........................... 2,278,000
28,800 KeyCorp.............................................. 507,600
42,925 Mellon Financial Corp................................ 1,564,080
36,075 National City Corp. ................................. 615,530
19,700 Northern Trust Corp. ................................ 1,281,731
28,425 PNC Bank Corp. ...................................... 1,332,422
31,100 SunTrust Banks, Inc. ................................ 1,420,881
46,000 U.S. Bancorp......................................... 885,500
20,175 Wachovia Corp. ...................................... 1,094,494
123,825 Wells Fargo Co....................................... 4,798,218
------------
22,357,305
------------
Banks -- Midwest (0.2%):
21,425 Fifth Third Bancorp.................................. 1,355,131
------------
Banks -- Money Center (1.3%):
119,500 Bank of America Corp................................. 5,138,500
91,875 Chase Manhattan Corp................................. 4,231,992
11,150 J.P. Morgan & Co., Inc............................... 1,227,894
------------
10,598,386
------------
Banks -- Northeast (0.2%):
12,500 State Street Corp. .................................. 1,325,781
------------
Beverages -- Alcoholic (0.3%):
36,000 Anheuser-Busch Co., Inc. ............................ 2,688,750
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Beverages -- Soft Drinks (1.7%):
158,375 Coca-Cola Co. ................................... $ 9,096,664
107,125 PepsiCo, Inc. ................................... 4,760,367
------------
13,857,031
------------
Broadcasting/Cable (0.8%):
20,400 Clear Channel Communications, Inc.*.............. 1,530,000
57,875 Comcast Corp., Special Class A*.................. 2,343,938
39,375 MediaOne Group, Inc.*............................ 2,611,105
------------
6,485,043
------------
Building & Construction -- Miscellaneous (0.1%):
52,700 Masco Corp. ..................................... 951,894
------------
Building Products -- Retail/Wholesale (1.1%):
152,625 Home Depot, Inc. ................................ 7,621,711
24,475 Lowe's Cos., Inc. ............................... 1,005,005
------------
8,626,716
------------
Building Products -- Wood (0.1%):
16,225 Weyerhaeuser Co. ................................ 697,675
------------
Cellular Telecom (0.3%):
43,200 Sprint Corp., PCS Group*......................... 2,570,400
------------
Chemicals -- Diversified (0.8%):
43,200 Dow Chemical Co. ................................ 1,304,100
75,550 E.I. du Pont de Nemours & Co. ................... 3,305,312
27,650 PPG Industries, Inc. ............................ 1,225,241
8,175 Union Carbide Corp. ............................. 404,663
------------
6,239,316
------------
Chemicals -- Specialty (0.2%):
4,500 Eastman Chemical Co. ............................ 214,875
21,600 Great Lakes Chemical Corp. ...................... 680,400
10,400 Praxair, Inc. ................................... 389,350
17,575 Sigma-Aldrich Corp. ............................. 514,069
------------
1,798,694
------------
Commercial Services (0.1%):
66,625 Cendant Corp.*................................... 932,750
------------
Computer Software (5.9%):
7,200 Adobe Systems, Inc. ............................. 936,000
50,875 Computer Associates International, Inc. ......... 2,604,164
351,300 Microsoft Corp.*................................. 28,103,999
189,100 Oracle Corp.*.................................... 15,896,219
------------
47,540,382
------------
Computers -- Local Area Network (3.6%):
458,800 Cisco Systems, Inc.*............................. 29,047,774
------------
Computers -- Mainframe (1.7%):
123,350 IBM Corp. ....................................... 13,514,534
------------
</TABLE>
Continued
28
<PAGE>
Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Computers -- Memory Devices (1.7%):
134,400 EMC Corp.*........................................... $ 10,340,400
12,875 Seagate Technology, Inc.*............................ 708,125
25,000 VERITAS Software Corp.*.............................. 2,825,391
------------
13,873,916
------------
Computers -- Micro (1.7%):
19,800 Apple Computer, Inc.*................................ 1,037,025
118,550 Compaq Computer Corp. .............................. 3,030,434
164,125 Dell Computer Corp.*................................. 8,093,415
20,275 Gateway 2000, Inc.*.................................. 1,150,606
------------
13,311,480
------------
Computers -- Mini (2.4%):
71,025 Hewlett-Packard Co. ................................. 8,869,247
111,350 Sun Microsystems, Inc.*.............................. 10,125,891
------------
18,995,138
------------
Computers -- Networking Products (0.4%):
22,075 3Com Corp.*.......................................... 1,272,072
12,500 Cabletron Systems, Inc.*............................. 315,625
19,200 Network Appliance, Inc.*............................. 1,545,600
------------
3,133,297
------------
Computers -- Services (1.0%):
83,800 Automatic Data Processing, Inc. ..................... 4,488,537
12,875 Computer Sciences Corp.*............................. 961,602
33,700 Electronic Data Systems Corp. ....................... 1,390,125
28,800 First Data Corp. .................................... 1,429,200
------------
8,269,464
------------
Cosmetics & Toiletries (0.7%):
21,425 Alberto-Culver Co., Class B.......................... 654,802
67,200 Gillette Co. ........................................ 2,347,800
46,075 Kimberly-Clark Corp. ............................... 2,643,553
------------
5,646,155
------------
Cruise Lines (0.1%):
39,375 Carnival Corp. ...................................... 767,813
------------
Distribution/Wholesale (0.1%):
29,775 Costco Wholesale Corp.*.............................. 982,575
------------
Diversified (5.1%):
660,825 General Electric Co. (b)............................. 35,023,724
11,525 Johnson Controls, Inc. .............................. 591,377
28,425 Minnesota Mining & Manufacturing Co. ............... 2,345,062
15,750 Textron, Inc. ....................................... 855,422
35,800 United Technologies Corp. .......................... 2,107,725
------------
40,923,310
------------
Electric -- Integrated (0.1%):
33,325 TXU Corp. .......................................... 983,088
------------
Electrical Components -- Semiconductors (6.7%):
9,600 Advanced Micro Devices, Inc.*........................ 741,600
22,075 Analog Devices, Inc.*................................ 1,677,700
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Electrical Components -- Semiconductors (continued)
49,725 Applied Materials, Inc.*............................. $ 4,506,328
13,250 Conexant Systems, Inc.*.............................. 644,281
234,675 Intel Corp. ........................................ 31,373,114
12,000 KLA-Tencor Corp.*.................................... 702,750
19,200 LSI Logic Corp.*..................................... 1,039,200
21,125 Micron Technology, Inc.*............................. 1,860,320
19,200 Rockwell International Corp. ........................ 604,800
11,525 Teradyne, Inc.*...................................... 847,088
112,300 Texas Instruments, Inc. ............................. 7,713,606
20,830 Xilinx, Inc.*........................................ 1,719,777
------------
53,430,564
------------
Electronic -- Connectors (0.0%):
13,250 Thomas & Betts Corp. ................................ 253,406
------------
Electronic Components/Instruments (0.2%):
37,925 Solectron Corp.*..................................... 1,588,109
------------
Electronic Measuring Equipment (0.1%):
5,775 Tektronix, Inc. ..................................... 427,350
------------
Electronic Measuring Instruments (0.3%):
28,800 Agilent Technologies, Inc.*.......................... 2,124,000
------------
Fiber Optics (0.6%):
17,575 Corning, Inc. ....................................... 4,743,053
------------
Finance (0.6%):
49,925 Associates First Capital Corp., Class A.............. 1,113,952
12,975 Capital One Financial Corp. ......................... 579,009
55,000 MBNA Corp. ......................................... 1,491,875
51,850 Washington Mutual, Inc. ............................. 1,497,169
------------
4,682,005
------------
Financial -- Consumer Loans (0.2%):
39,850 Household International, Inc. ...................... 1,656,266
------------
Financial -- Investment Bankers (0.8%):
29,775 Merrill Lynch & Co., Inc. ........................... 3,424,125
80,625 Schwab (Charles) Corp. .............................. 2,711,016
------------
6,135,141
------------
Financial -- Miscellaneous Services (1.5%):
87,825 American Express Co. ................................ 4,577,878
90,225 Morgan Stanley, Dean Witter & Co. ................... 7,511,231
------------
12,089,109
------------
Financial -- Mortgage & Related Services (0.7%):
------------
71,025 Fannie Mae........................................... 3,706,617
47,325 Freddie Mac.......................................... 1,916,663
------------
5,623,280
------------
</TABLE>
Continued
29
<PAGE>
Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Financial Services -- Diversified (1.8%):
233,250 Citigroup, Inc. .................................... $ 14,053,313
------------
Food -- Canned (0.2%):
39,550 H.J. Heinz Co........................................ 1,730,313
------------
Food -- Diversified (1.2%):
23,150 Bestfoods............................................ 1,603,138
36,400 ConAgra, Inc. ....................................... 693,875
35,050 General Mills, Inc. ................................. 1,340,663
32,825 Kellogg Co. ......................................... 976,544
17,375 Quaker Oats Co. ..................................... 1,305,297
26,700 Ralston Purina Group................................. 532,331
78,900 Sara Lee Corp. ...................................... 1,523,756
39,300 Unilever NV.......................................... 1,689,899
------------
9,665,503
------------
Food Items -- Wholesale (0.1%):
41,175 SUPERVALU, Inc. ..................................... 784,898
------------
Food Products (0.2%):
30,150 Safeway, Inc.*....................................... 1,360,519
------------
Home Decoration Products (0.1%):
18,625 Newell Rubbermaid, Inc. ............................. 479,594
------------
Hotels & Lodging (0.1%):
32,650 Marriott International, Inc., Class A................ 1,177,441
------------
Instruments -- Scientific (0.1%):
7,200 PE Corp-PE Biosystems Group.......................... 474,300
------------
Insurance -- Brokers (0.3%):
23,050 Marsh & McLennan Cos., Inc. ......................... 2,407,284
------------
Insurance -- Life (0.2%):
23,150 American General Corp. .............................. 1,412,150
17,000 Torchmark Corp. ..................................... 419,688
------------
1,831,838
------------
Insurance -- Multi-Line (0.3%):
9,525 Aetna, Inc. ......................................... 611,386
13,925 CIGNA Corp. ......................................... 1,301,987
5,475 MBIA, Inc. .......................................... 263,827
------------
2,177,200
------------
Insurance -- Property & Casualty (1.8%):
53,750 Allstate Corp. ...................................... 1,195,938
113,375 American International Group, Inc. .................. 13,321,562
11,525 Safeco Corp. ........................................ 229,059
------------
14,746,559
------------
Internet Software (1.5%):
145,425 America Online, Inc.*................................ 7,671,169
34,175 Yahoo, Inc.*......................................... 4,233,428
------------
11,904,597
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Machine Tools & Related Products (0.1%):
11,350 The Black & Decker Corp. .......................... $ 446,197
------------
Machinery -- Construction/Mining (0.2%):
31,100 Caterpillar, Inc. ................................. 1,053,513
16,800 Ingersoll-Rand Co. ................................ 676,200
------------
1,729,713
------------
Machinery -- Electrical (0.3%):
38,125 Emerson Electric Co. .............................. 2,301,797
------------
Machinery -- General Industrial (0.2%):
12,975 Dover Corp. ....................................... 526,298
19,775 Illinois Tool Works, Inc. ......................... 1,127,175
------------
1,653,473
------------
Media Conglomerates (2.3%):
83,525 Time Warner, Inc. ................................. 6,347,900
97,826 Viacom, Inc., Class B*............................. 6,670,510
133,425 Walt Disney Co.*................................... 5,178,558
------------
18,196,968
------------
Medical -- Biomedical/Genetic (0.7%):
67,300 Amgen, Inc.*....................................... 4,727,825
9,125 Biogen, Inc.*...................................... 588,563
------------
5,316,388
------------
Medical -- Drugs (8.7%):
99,825 Abbott Laboratories................................ 4,448,452
82,000 American Home Products Corp. ...................... 4,817,500
152,900 Bristol-Myers Squibb Co. .......................... 8,906,425
79,950 Eli Lilly & Co. .................................. 7,985,006
164,125 Merck & Co., Inc. ................................ 12,576,077
419,100 Pfizer, Inc. ...................................... 20,116,799
79,000 Pharmacia Corp. ................................... 4,083,313
110,100 Schering-Plough Corp. ............................. 5,560,050
------------
68,493,622
------------
Medical -- Wholesale Drug (0.2%):
19,200 Cardinal Health, Inc. ............................. 1,420,800
------------
Medical Instruments (0.4%):
16,525 Biomet, Inc. ...................................... 635,180
54,375 Medtronic, Inc. ................................... 2,708,554
------------
3,343,734
------------
Medical Products (0.4%):
23,325 Baxter International, Inc. ........................ 1,640,039
24,475 Guidant Corp.*..................................... 1,211,513
------------
2,851,552
------------
Medical/Dental Supplies (1.4%):
15,075 C.R. Bard, Inc. ................................... 725,484
102,700 Johnson & Johnson.................................. 10,462,563
------------
11,188,047
------------
</TABLE>
Continued
30
<PAGE>
Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Metal -- Gold (0.1%):
50,500 Barrick Gold Corp. .............................. $ 918,468
26,700 Homestake Mining Co. ............................ 183,563
------------
1,102,031
------------
Metals (0.3%):
73,830 Alcoa, Inc. ..................................... 2,141,070
3,947 Phelps Dodge Corp. .............................. 146,779
------------
2,287,849
------------
Multimedia (0.2%):
27,850 Seagram Co., Ltd. ............................... 1,615,300
------------
Office Automation & Equipment (0.2%):
25,925 Pitney Bowes, Inc. .............................. 1,037,000
46,275 Xerox Corp. ..................................... 960,206
------------
1,997,206
------------
Office Supplies & Forms (0.1%):
7,700 Avery Dennison Corp. ............................ 516,863
------------
Oil & Gas (0.2%):
47,900 Conoco, Inc., Class B............................ 1,176,544
7,385 Transocean Sedco Forex, Inc. .................... 394,636
------------
1,571,180
------------
Oil -- Field Services (0.6%):
44,925 Halliburton Co. ................................. 2,119,898
36,975 Schlumberger, Ltd. .............................. 2,759,260
------------
4,879,158
------------
Oil -- International Integrated (4.0%):
46,075 Chevron Corp. ................................... 3,907,736
230,275 Exxon Mobil Corp. ............................... 18,076,587
137,250 Royal Dutch Petroleum Co., ADR................... 8,449,453
35,425 Texaco, Inc. .................................... 1,886,381
------------
32,320,157
------------
Oil -- Production/Pipeline (0.4%):
50,600 Enron Corp. ..................................... 3,263,700
------------
Oil -- U.S. Exploration & Production (0.1%):
19,400 Burlington Resources, Inc........................ 742,050
------------
Oil -- U.S. Integrated (0.4%):
26,600 Phillips Petroleum Co. .......................... 1,348,288
28,425 Unocal Corp. .................................... 941,578
27,950 USX-Marathon Group............................... 700,497
------------
2,990,363
------------
Paper & Related Products (0.2%):
38,875 International Paper Co. ......................... 1,158,961
26,225 Mead Corp. ...................................... 662,181
------------
1,821,142
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Photography (0.2%):
20,925 Eastman Kodak Co. ................................... $ 1,245,038
------------
Pipelines (0.3%):
14,700 Columbia Energy Group................................ 964,688
32,650 The Williams Companies, Inc. ........................ 1,361,096
------------
2,325,784
------------
Printers & Related Products (0.1%):
7,700 Lexmark International Group, Inc.*................... 517,825
------------
Protection -- Safety (0.7%):
119,975 Tyco International, Ltd. ............................ 5,683,816
------------
Publishing -- Books (0.1%):
19,700 McGraw-Hill Cos., Inc. ............................. 1,063,800
------------
Publishing -- Newspapers (0.4%):
26,975 Gannett, Inc. ....................................... 1,613,442
6,150 Knight-Ridder, Inc. ................................. 327,103
17,475 New York Times Co.*.................................. 690,263
22,075 Tribune Co. ......................................... 772,625
------------
3,403,433
------------
Restaurants (0.4%):
103,675 McDonald's Corp.*.................................... 3,414,795
------------
Retail (0.3%):
15,550 Best Buy Co.*........................................ 983,538
22,075 Kohl's Corp.*........................................ 1,227,922
31,675 Staples, Inc.*....................................... 487,003
------------
2,698,463
------------
Retail -- Apparel/Shoes (0.3%):
54,725 Gap, Inc. ........................................... 1,710,156
45,700 Limited, Inc. ....................................... 988,263
------------
2,698,419
------------
Retail -- Discount (2.3%):
325,000 Wal-Mart Stores, Inc. (b)............................ 18,728,125
------------
Retail -- Drug Store (0.4%):
25,925 CVS Corp. .......................................... 1,037,000
66,225 Walgreen Co. ....................................... 2,131,617
------------
3,168,617
------------
Retail -- Major Department Stores (0.5%):
30,150 May Department Stores Co. ........................... 723,600
27,550 Sears, Roebuck & Co. ................................ 898,819
37,925 Target Corp. ........................................ 2,199,650
------------
3,822,069
------------
Retail -- Regional Department Stores (0.1%):
17,300 Federated Department Stores, Inc.*................... 583,875
------------
Retail -- Supermarkets (0.1%):
24,575 Albertson's, Inc. ................................... 817,119
------------
</TABLE>
Continued
31
<PAGE>
Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Rubber -- Tires (0.1%):
13,250 The B.F. Goodrich Co. ............................ $ 451,328
------------
Soap & Cleaning Preparations (1.0%):
42,725 Colgate-Palmolive Co. ............................. 2,558,159
92,150 Procter & Gamble Co. ............................. 5,275,588
------------
7,833,747
------------
Steel -- Producers (0.1%):
8,650 Nucor Corp. ....................................... 287,072
12,100 USX-U.S. Steel Group............................... 224,606
------------
511,678
------------
Technology (0.1%):
16,325 BMC Software, Inc.*................................ 595,607
------------
Telecom Equipment (0.3%):
41,275 QUALCOMM, Inc.*.................................... 2,476,500
------------
Telecommunications -- Equipment (4.3%):
20,175 ADC Telecommunications, Inc.*...................... 1,692,178
10,000 Comverse Technology, Inc.*......................... 930,000
216,925 Lucent Technologies, Inc. ......................... 12,852,805
148,050 Motorola, Inc. .................................... 4,302,703
184,875 Nortel Networks Corp., ADR......................... 12,617,719
26,025 Tellabs, Inc.*..................................... 1,781,086
------------
34,176,491
------------
Telecommunications -- Services and
Equipment (0.6%):
14,525 CenturyTel, Inc. .................................. 417,594
48,000 Global Crossing, Ltd*.............................. 1,263,000
47,550 Nextel Communications, Inc, Class A*............... 2,909,465
------------
4,590,059
------------
Textile -- Apparel (0.1%):
18,450 VF Corp. .......................................... 441,647
------------
Textile -- Home Furnishings (0.0%):
10,675 Springs Industries, Inc. ......................... 343,602
------------
Tobacco (0.5%):
150,700 Philip Morris Cos., Inc. .......................... 4,002,969
24,775 U.S.T., Inc. ...................................... 363,883
------------
4,366,852
------------
Tools -- Hand Held (0.0%):
10,575 Snap-On, Inc. ..................................... 281,559
------------
Toys/Game/Hobby (0.1%):
29,475 Hasbro, Inc. ..................................... 443,967
------------
Transportation -- Air Freight (0.1%):
20,450 FDX Corp.*......................................... 777,100
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Transportation -- Airline (0.2%):
15,375 AMR Corp.*.......................................... $ 406,477
13,150 Delta Air Lines, Inc. .............................. 664,897
46,075 Southwest Airlines Co. ............................ 872,545
------------
1,943,919
------------
Transportation -- Railroad (0.2%):
29,000 Norfolk Southern Corp. ............................. 431,375
25,150 Union Pacific Corp. ................................ 935,266
------------
1,366,641
------------
Travel Services (0.0%):
11,112 Sabre Holdings Corp. ............................... 316,692
------------
Utilities -- Electric Power (1.4%):
30,050 Consolidated Edison, Inc. ......................... 890,231
21,025 Detroit Edison Co. ................................. 642,577
35,800 Duke Energy Corp. .................................. 2,018,225
33,500 Entergy Corp. ...................................... 910,781
19,300 First Energy Corp. ................................. 451,138
21,900 Florida Power & Light, Inc. ........................ 1,084,050
33,700 Northern States Power Co. ......................... 680,319
25,550 Peco Energy Corp. .................................. 1,029,984
33,600 Public Service Enterprise Group, Inc. .............. 1,163,400
38,800 Reliant Energy, Inc. .............................. 1,147,025
56,650 Southern Co. ....................................... 1,320,653
------------
11,338,383
------------
Utilities -- Telephone (5.8%):
215,000 AT&T Corp. ......................................... 6,799,375
106,350 Bell Atlantic Corp.*................................ 5,403,909
123,825 BellSouth Corp. ................................... 5,278,041
63,350 GTE Corp. .......................................... 3,943,538
231,325 SBC Communications, Inc. ........................... 10,004,805
56,650 Sprint Corp. ....................................... 2,889,150
39,175 US West, Inc. ...................................... 3,359,256
191,000 WorldCom, Inc.*..................................... 8,762,125
------------
46,440,199
------------
Total Common Stocks................................. 787,757,259
------------
INVESTMENT COMPANIES (1.5%):
260 Dreyfus Cash Management Money Market Fund........... 260
11,869,798 Federated Prime Value Obligations Money Market
Fund................................................ 11,869,798
------------
Total Investment Companies.......................... 11,870,058
------------
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (1.9%):
Bank Note (0.3%):
$ 759,400 First Union National Bank, 6.68%, 11/1/00**......... 758,990
502,400 Bank of America NA, 6.66%, 6/6/01................... 502,124
500,300 Keybank National Association, 6.67%, 6/27/01........ 500,011
</TABLE>
Continued
32
<PAGE>
Growth and Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Bank Note (continued)
$ 503,000 zComerica Bank, 6.63%, 1/12/01**.................... $ 501,731
503,000 SPNC Bank, 6.66%, 6/29/01........................... 500,134
------------
2,762,990
------------
Certificate of Deposit (0.1%):
486,000 Deutsche Bank AG Yankee, 6.67%, 6/29/01............. 485,773
------------
Commercial Paper (0.4%):
Banking (0.1%):
499,806 Societe General North America, 7.00%, 7/3/00........ 499,806
------------
Diversified Financial Services (0.1%):
500,000 General Electric Capital Corp., 6.59%, 8/14/00...... 495,962
------------
Finance (0.1%):
500,000 Ford Motor Credit Corp., 6.63%, 7/14/00............. 498,742
500,000 UBS Finance, 7.13%, 7/5/00.......................... 499,604
------------
998,346
------------
Medical-Drugs (0.1%):
500,000 Merck & Co. Inc., 6.86%, 7/7/00..................... 499,429
------------
Retail-Discount (0.0%):
500,000 Wal-Mart Stores Inc., 6.63%, 8/15/00................ 495,872
------------
Utilities (0.0%):
500,000 Bell South Capital Funding, 6.61%, 8/15/00.......... 495,872
------------
3,485,287
------------
U.S. Government Agency Obligations
Fannie Mae (0.1%):
501,773 6.57%, 6/7/01....................................... 501,938
------------
Repurchase Agreements (1.0%):
2,200,413 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $2,833,859 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-7/15/38,
market value $2,230,805)............................ 2,200,413
2,000,377 Goldman Sachs & Co., 6.79%, 7/3/00 (Collateralized
by $7,413,293 various Government Agency Securities,
4.50%-14.00%, 8/15/00-6/20/30, market value
$2,028,073)......................................... 2,000,377
1,684,313 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $2,801,278 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $1,712,237)............................ 1,684,313
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Repurchase Agreements (continued)
$2,170,413 Salomon Smith Barney, 6.85%, 7/3/00 (Collateralized
by $3,519,304 various Government Agency Securities,
4.50%-9.00%, 9/15/00-6/15/30, market value
$2,200,688)........................................ $ 2,170,413
------------
8,055,516
------------
Total Short-Term Securities Purchased With
Securities Lending Collateral...................... 15,291,504
------------
Total Investments (Cost $483,877,461) (a) -- 101.9%............ 814,918,821
Other assets in excess of liabilities -- (1.9)%................ (15,045,942)
------------
Total Net Assets -- 100.0%..................................... $799,872,879
============
</TABLE>
-------
Percentages indicated are based on net assets of $799,872,879.
(a) Represents cost for Federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $361,100,314
Unrealized depreciation........................................ (30,278,254)
------------
Net unrealized appreciation.................................... $330,822,060
============
</TABLE>
(b) Part of this security has been deposited as initial margin on open futures
contracts.
* Non-income producing security.
** Variable rate security. Rate presented represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
ADR -- American Depositary Receipt
NV -- Naamloze Vennootschap (Dutch Corporation)
PLC -- Public Limited Company (British)
At June 30, 2000, the Fund's open long futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
# of Opening Notional Depreciation Market
Contracts Contract Type Amount on Futures Value
--------- ------------- -------- ------------ ------
<S> <C> <C> <C> <C>
30 Standard & Poor's $11,230,050 $(219,300) $11,010,750
500, 9/16/00
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (99.4%):
Advertising (0.2%):
21,000 Interpublic Group Cos., Inc. ....................... $ 903,000
13,300 Omnicom Group....................................... 1,184,531
------------
2,087,531
------------
Advertising Agencies (0.0%):
5,200 Young & Rubicam Inc. ............................... 297,375
------------
Aerospace & Defense (0.8%):
65,192 Boeing Co. ......................................... 2,725,840
15,100 General Dynamics Corp. ............................. 788,975
59,412 Honeywell International, Inc. ...................... 2,001,442
29,688 Lockheed Martin Corp. .............................. 736,634
5,200 Northrop Grumman Corp. ............................. 344,500
25,400 Raytheon Co., Class B............................... 488,950
------------
7,086,341
------------
Appliances & Household Products (0.1%):
6,300 Maytag Corp. ....................................... 232,313
5,600 Whirlpool Corp. .................................... 261,100
------------
493,413
------------
Applications Software (0.3%):
13,400 Citrix Systems, Inc.*............................... 253,763
20,826 Parametric Technology Corp.*........................ 229,086
14,500 Siebel Systems, Inc.*............................... 2,371,656
------------
2,854,505
------------
Auto/Truck -- Original Equipment (0.2%):
3,100 Cummins Engine, Inc. ............................... 84,475
12,432 Dana Corp. ......................................... 263,403
42,384 Delphi Automotive Systems Corp. .................... 617,217
5,500 Eaton Corp. ........................................ 368,500
4,720 Navistar International Corp.*....................... 146,615
5,850 PACCAR, Inc. ....................................... 232,172
9,100 TRW, Inc. .......................................... 394,713
11,863 Visteon Corp.*...................................... 143,833
------------
2,250,928
------------
Auto/Truck -- Replacement Equipment (0.0%):
13,425 Genuine Parts Co. .................................. 268,500
------------
Automotive (0.7%):
90,600 Ford Motor Co. ..................................... 3,895,800
44,000 General Motors Corp. ............................... 2,554,750
------------
6,450,550
------------
Banks--Central U.S. (0.2%):
73,482 Firstar Corp. ...................................... 1,547,715
10,395 Old Kent Financial Corp. ........................... 278,066
------------
1,825,781
------------
Banks--Major Regional (2.4%):
55,200 Bank of New York Co., Inc. ......................... 2,566,799
86,011 Bank One Corp. ..................................... 2,284,667
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Banks--Major Regional (continued)
11,750 Comerica, Inc. ..................................... $ 527,281
74,070 First Union Corp. .................................. 1,837,862
68,644 FleetBoston Financial Corp. ........................ 2,333,895
33,500 KeyCorp............................................. 590,438
38,100 Mellon Financial Corp. ............................. 1,388,269
46,200 National City Corp. ................................ 788,288
16,700 Northern Trust Corp. ............................... 1,086,544
22,000 PNC Bank Corp. ..................................... 1,031,250
13,200 Summit Bancorp...................................... 325,050
24,000 SunTrust Banks, Inc. ............................... 1,096,500
56,462 U.S. Bancorp........................................ 1,086,894
15,200 Wachovia Corp. ..................................... 824,600
120,100 Wells Fargo Co. .................................... 4,653,874
------------
22,422,211
------------
Banks -- Midwest (0.2%):
23,200 Fifth Third Bancorp................................. 1,467,400
17,147 Huntington Bancshares............................... 271,137
------------
1,738,537
------------
Banks -- Money Center (1.2%):
123,392 Bank of America Corp. .............................. 5,305,856
26,100 BB&T Corp. ......................................... 623,138
92,724 Chase Manhattan Corp. .............................. 4,271,099
13,000 J.P. Morgan & Co., Inc. ............................ 1,431,625
------------
11,631,718
------------
Banks -- Northeast (0.1%):
12,000 State Street Corp. ................................. 1,272,750
------------
Banks -- South (0.1%):
29,350 AmSouth Bancorporation.............................. 462,262
12,700 SouthTrust Corp. ................................... 287,338
------------
749,600
------------
Beverages -- Alcoholic (0.3%):
2,800 Adolph Coors Co. ................................... 169,400
34,870 Anheuser-Busch Co., Inc. ........................... 2,604,353
5,100 Brown-Forman Corp. ................................. 274,125
------------
3,047,878
------------
Beverages -- Soft Drinks (1.6%):
185,200 Coca-Cola Co. ...................................... 10,637,424
109,200 PepsiCo, Inc. ...................................... 4,852,575
------------
15,489,999
------------
Broadcasting/Cable (0.8%):
25,400 Clear Channel Communications, Inc.*................. 1,905,000
69,500 Comcast Corp., Special Class A*..................... 2,814,750
45,900 MediaOne Group, Inc.* .............................. 3,043,803
------------
7,763,553
------------
Building & Construction -- Miscellaneous (0.1%):
3,100 Armstrong Holdings, Inc. ........................... 47,469
33,500 Masco Corp. ........................................ 605,094
4,100 Owens-Corning Fiberglass Corp. ..................... 37,925
</TABLE>
Continued
34
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Building & Construction -- Miscellaneous (continued)
7,500 Vulcan Materials Co. ............................. $ 320,156
------------
1,010,644
------------
Building -- Heavy Construction (0.0%):
5,700 Fluor Corp. ...................................... 180,263
------------
Building -- Maintenance & Service (0.0%):
9,700 Ecolab, Inc. ..................................... 378,906
------------
Building -- Residential/Commercial (0.0%):
4,500 Centex Corp. ..................................... 105,750
3,540 Kaufman & Broad Home Corp. ....................... 70,136
3,200 Pulte Corp. ...................................... 69,200
------------
245,086
------------
Building Products -- Retail/Wholesale (1.0%):
172,643 Home Depot, Inc. ................................. 8,621,360
28,700 Lowe's Cos., Inc. ................................ 1,178,494
------------
9,799,854
------------
Building Products -- Wood (0.1%):
8,100 Louisiana-Pacific Corp. .......................... 88,088
17,650 Weyerhaeuser Co. ................................. 758,950
------------
847,038
------------
Business Equipment & Services (0.3%):
31,200 AES Corp.*........................................ 1,423,500
24,900 Office Depot, Inc.*............................... 155,625
27,750 Paychex, Inc. .................................... 1,165,500
------------
2,744,625
------------
Business Services (0.0%):
7,400 H & R Block, Inc. ................................ 239,575
------------
Cellular Telecom (0.4%):
68,100 Sprint Corp., PCS Group*.......................... 4,051,950
------------
Chemicals -- Diversified (0.7%):
49,200 Dow Chemical Co. ................................. 1,485,225
78,320 E.I. du Pont de Nemours & Co. .................... 3,426,499
8,100 Hercules, Inc. ................................... 113,906
13,000 PPG Industries, Inc. ............................. 576,063
16,377 Rohm & Haas Co. .................................. 565,007
10,000 Union Carbide Corp. .............................. 495,000
5,200 W.R. Grace & Co.*................................. 63,050
------------
6,724,750
------------
Chemicals -- Specialty (0.2%):
17,200 Air Products & Chemical, Inc...................... 529,975
5,900 Eastman Chemical Co. ............................. 281,725
9,337 Engelhard Corp. .................................. 159,313
4,400 Great Lakes Chemical Corp......................... 138,600
11,900 Praxair, Inc. .................................... 445,506
7,600 Sigma-Aldrich Corp. .............................. 222,300
------------
1,777,419
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Circuits (0.3%):
23,300 Linear Technology Corp. ............................ $ 1,489,744
20,800 Maxim Integrated Products, Inc.*.................... 1,413,100
------------
2,902,844
------------
Commercial Services (0.1%):
52,919 Cendant Corp.*...................................... 740,866
8,500 Quintiles Transnational Corp.*...................... 120,063
------------
860,929
------------
Commercial Services -- Finance (0.0%):
4,000 Convergys Corp.*.................................... 207,500
------------
Computer Software (5.7%):
8,900 Adobe Systems, Inc. ................................ 1,157,000
44,118 Computer Associates International, Inc. ............ 2,258,290
27,000 Compuware Corp.*.................................... 280,125
3,000 Mercury Interactive Corp.*.......................... 290,250
390,400 Microsoft Corp.*.................................... 31,231,999
211,624 Oracle Corp.*....................................... 17,789,643
------------
53,007,307
------------
Computers -- Integrated Systems (0.0%):
7,200 NCR Corp.*.......................................... 280,350
------------
Computers -- Local Area Network (3.5%):
517,800 Cisco Systems, Inc.*................................ 32,783,212
24,600 Novell, Inc.*....................................... 227,550
------------
33,010,762
------------
Computers -- Mainframe (1.6%):
132,050 IBM Corp. .......................................... 14,467,728
23,300 Unisys Corp.*....................................... 339,306
------------
14,807,034
------------
Computers -- Memory Devices (1.8%):
161,800 EMC Corp.*.......................................... 12,448,487
16,200 Seagate Technology, Inc.*........................... 891,000
29,200 VERITAS Software Corp.*............................. 3,300,056
------------
16,639,543
------------
Computers -- Micro (1.6%):
24,200 Apple Computer, Inc.*............................... 1,267,475
127,024 Compaq Computer Corp. .............................. 3,247,051
192,400 Dell Computer Corp.*................................ 9,487,725
23,700 Gateway 2000, Inc.*................................. 1,344,975
------------
15,347,226
------------
Computers -- Mini (2.1%):
75,400 Hewlett-Packard Co. ................................ 9,415,575
118,400 Sun Microsystems, Inc.*............................. 10,766,999
------------
20,182,574
------------
Computers -- Networking Products (0.4%):
25,700 3Com Corp.*......................................... 1,480,963
7,900 Adaptec Inc.*....................................... 179,725
</TABLE>
Continued
35
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Computers -- Networking Products (continued)
13,800 Cabletron Systems, Inc.*.......................... $ 348,450
22,800 Network Appliance, Inc.*.......................... 1,835,400
------------
3,844,538
------------
Computers -- Services (0.8%):
47,300 Automatic Data Processing, Inc. .................. 2,533,506
10,900 Ceridian Corp.*................................... 262,281
12,500 Computer Sciences Corp.*.......................... 933,594
35,300 Electronic Data Systems Corp...................... 1,456,125
10,700 Equifax, Inc. .................................... 280,875
31,400 First Data Corp. ................................. 1,558,225
4,400 Sapient Corp.*.................................... 470,525
------------
7,495,131
------------
Consumer Durable (0.1%):
10,700 Danaher Corp. .................................... 528,981
------------
Consumer Non-Durable (0.1%):
31,900 Coca-Cola Enterprises, Inc. ...................... 520,369
------------
Consumer Products -- Miscellaneous (0.0%):
4,800 American Greetings Corp., Class A................. 91,200
4,300 Tupperware Corp. ................................. 94,600
------------
185,800
------------
Containers & Packaging (0.0%):
11,400 Owens-Illinois, Inc.*............................. 133,238
6,216 Sealed Air Corp.*................................. 325,563
------------
458,801
------------
Containers -- Metal & Glass (0.0%):
2,200 Ball Corp. ....................................... 70,813
9,800 Crown Cork & Seal Co., Inc. ...................... 147,000
------------
217,813
------------
Containers -- Paper & Plastic (0.0%):
3,900 Bemis Co. ........................................ 131,138
12,800 Pactiv Corp.*..................................... 100,800
------------
231,938
------------
Cosmetics & Toiletries (0.7%):
4,100 Alberto-Culver Co., Class B....................... 125,306
18,200 Avon Products, Inc. .............................. 809,900
80,464 Gillette Co. ..................................... 2,811,212
7,900 International Flavors & Fragrances, Inc. ......... 238,481
41,640 Kimberly-Clark Corp. ............................. 2,389,095
------------
6,373,994
------------
Cruise Lines (0.1%):
46,300 Carnival Corp. ................................... 902,850
------------
Distribution/Wholesale (0.1%):
33,300 Costco Wholesale Corp.*........................... 1,098,900
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Diversified (4.9%):
5,025 Crane Co. .......................................... $ 122,170
2,300 Freeport-McMoran-Cooper Corp.*...................... 133,400
738,200 General Electric Co. (b)............................ 39,124,599
23,130 IMS Health, Inc. ................................... 416,340
6,600 ITT Industries, Inc. ............................... 200,475
6,400 Johnson Controls, Inc. ............................. 328,400
29,900 Minnesota Mining & Manufacturing Co. ............... 2,466,750
3,000 National Service Industries, Inc. .................. 58,500
11,200 Textron, Inc. ...................................... 608,300
35,600 United Technologies Corp. .......................... 2,095,950
------------
45,554,884
------------
Electric -- Integrated (0.2%):
12,000 CP&L Energy, Inc. .................................. 383,250
17,867 Dominion Resources, Inc. ........................... 766,047
10,900 PP&L, Inc.*......................................... 239,119
20,770 TXU Corp. .......................................... 612,715
------------
2,001,131
------------
Electrical & Electronic (0.1%):
14,675 Molex, Inc. ........................................ 706,234
------------
Electrical Components -- Semiconductors (6.6%):
11,000 Advanced Micro Devices, Inc.*....................... 849,750
15,000 Altera Corp.*....................................... 1,529,063
26,200 Analog Devices, Inc.*............................... 1,991,200
60,100 Applied Materials, Inc.*............................ 5,446,562
16,100 Conexant Systems, Inc.*............................. 782,863
249,600 Intel Corp. ........................................ 33,368,399
22,300 LSI Logic Corp.*.................................... 1,206,988
40,500 Micron Technology, Inc.*............................ 3,566,531
12,900 National Semiconductor Corp.*....................... 732,075
7,000 Novellus Systems, Inc.*............................. 395,938
14,200 Rockwell International Corp. ....................... 447,300
122,000 Texas Instruments, Inc. ............................ 8,379,874
24,100 Xilinx, Inc.*....................................... 1,989,756
------------
60,686,299
------------
Electronic -- Connectors (0.0%):
4,400 Thomas & Betts Corp. ............................... 84,150
------------
Electronic -- Miscellaneous Components (0.1%):
9,600 Sanmina Corp.*...................................... 820,800
------------
Electronic Components -- Semiconductors (0.2%):
13,800 KLA-Tencor Corp.*................................... 808,163
12,800 Teradyne, Inc.*..................................... 940,800
------------
1,748,963
------------
Electronic Components/Instruments (0.2%):
44,400 Solectron Corp.*.................................... 1,859,250
------------
Electronic Measuring Equipment (0.0%):
3,500 Tektronix, Inc. .................................... 259,000
------------
Electronic Measuring Instruments (0.3%):
33,657 Agilent Technologies, Inc.*......................... 2,482,204
------------
</TABLE>
Continued
36
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Electronics (0.0%):
6,000 American Power Conversion Corp.*................ $ 244,875
------------
Energy (0.0%):
13,300 Niagara Mohawk Holdings Inc.*................... 185,369
------------
Enterprise Software (0.0%):
20,100 PeopleSoft, Inc.*............................... 336,675
------------
Fiber Optics (0.6%):
20,700 Corning, Inc. .................................. 5,586,413
------------
Finance (0.8%):
54,654 Associates First Capital Corp., Class A......... 1,219,467
8,487 Bear Stearns Companies, Inc. ................... 353,271
14,800 Capital One Financial Corp. .................... 660,450
18,600 Franklin Resources, Inc. ....................... 564,975
60,130 MBNA Corp. ..................................... 1,631,027
9,000 Price (T. Rowe) Associates...................... 382,500
16,400 Regions Financial Corp. ........................ 325,950
11,900 SLM Holding Corp. .............................. 445,506
10,700 Union Planters Corp. ........................... 298,931
43,269 Washington Mutual, Inc. ........................ 1,249,393
------------
7,131,470
------------
Financial -- Banking (0.0%):
21,000 Synovus Financial Corp. ........................ 370,125
------------
Financial -- Consumer Loans (0.3%):
35,293 Household International, Inc. .................. 1,466,865
10,650 Providian Financial Corp. ...................... 958,500
------------
2,425,365
------------
Financial -- Investment Banker/Broker (0.1%):
9,000 Lehman Brothers Holding, Inc. .................. 851,063
10,700 Paine Webber Group Inc. ........................ 486,850
------------
1,337,913
------------
Financial -- Investment Bankers (0.7%):
27,800 Merrill Lynch & Co., Inc. ...................... 3,197,000
96,175 Schwab (Charles) Corp. ......................... 3,233,884
------------
6,430,884
------------
Financial -- Miscellaneous Services (1.3%):
100,700 American Express Co. ........................... 5,248,988
83,532 Morgan Stanley, Dean Witter & Co. .............. 6,954,039
------------
12,203,027
------------
Financial -- Mortgage & Related Services (0.7%):
8,500 Countrywide Credit Industries, Inc. ............ 257,656
76,900 Fannie Mae...................................... 4,013,219
52,100 Freddie Mac..................................... 2,110,050
------------
6,380,925
------------
Financial -- Savings & Loan (0.1%):
12,100 Golden West Financial Corp...................... 493,831
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Financial Services -- Diversified (1.6%):
252,866 Citigroup, Inc. .................................... $ 15,235,177
------------
Food -- Canned (0.2%):
32,000 Campbell Soup Co. .................................. 932,000
26,600 H.J. Heinz Co. ..................................... 1,163,750
------------
2,095,750
------------
Food -- Confectionery (0.1%):
10,400 Hershey Foods Corp. ................................ 506,350
8,700 Wm. Wrigley Jr. Co. ................................ 697,631
------------
1,203,981
------------
Food -- Diversified (0.9%):
20,900 Bestfoods........................................... 1,447,325
36,950 ConAgra, Inc. ...................................... 704,359
22,600 General Mills, Inc. ................................ 864,450
30,400 Kellogg Co. ........................................ 904,400
24,500 Nabisco Group Holdings.............................. 635,469
10,000 Quaker Oats Co. .................................... 751,250
22,640 Ralston Purina Group................................ 451,385
68,200 Sara Lee Corp. ..................................... 1,317,113
42,835 Unilever NV......................................... 1,841,905
------------
8,917,656
------------
Food -- Flour & Grain (0.0%):
45,524 Archer-Daniels-Midland Co. ......................... 446,704
------------
Food Items -- Wholesale (0.1%):
10,600 SUPERVALU, Inc. .................................... 202,063
24,700 Sysco Corp. ........................................ 1,040,487
------------
1,242,550
------------
Food Products (0.2%):
38,200 Safeway, Inc.*...................................... 1,723,775
------------
Gas & Electric Utility (0.1%):
28,800 PG & E Corp. ....................................... 709,200
------------
Health Care (0.1%):
21,127 McKesson HBOC, Inc. ................................ 442,347
4,800 Wellpoint Health Networks*.......................... 347,700
------------
790,047
------------
Home Decoration Products (0.1%):
14,700 Leggett & Platt, Inc. .............................. 242,550
21,180 Newell Rubbermaid, Inc. ............................ 545,385
------------
787,935
------------
Hotels & Lodging (0.1%):
27,900 Hilton Hotels Corp. ................................ 261,563
18,700 Marriott International, Inc., Class A............... 674,368
------------
935,931
------------
Instruments -- Scientific (0.2%):
3,400 Millipore Corp. .................................... 256,275
15,500 PE Corp-PE Biosystems Group......................... 1,021,063
</TABLE>
Continued
37
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Instruments -- Scientific (continued)
3,600 PerkinElmer, Inc. ................................ $ 238,050
------------
1,515,388
------------
Insurance (0.1%):
12,300 Cincinnati Financial Corp. ....................... 386,681
8,000 Loews Corp. ...................................... 480,000
5,500 Progressive Corp. ................................ 407,000
------------
1,273,681
------------
Insurance -- Accident & Health (0.1%):
19,200 Aon Corp. ........................................ 596,400
------------
Insurance -- Brokers (0.2%):
20,050 Marsh & McLennan Cos., Inc. ...................... 2,093,972
------------
Insurance -- Life (0.4%):
20,000 AFLAC, INC. ...................................... 918,750
18,498 American General Corp. ........................... 1,128,378
24,764 Conseco, Inc. .................................... 241,449
7,825 Jefferson-Pilot Corp. ............................ 441,623
10,000 Torchmark Corp. .................................. 246,875
17,984 UNUM Corp. ....................................... 360,804
------------
3,337,879
------------
Insurance -- Multi-Line (0.4%):
10,770 Aetna, Inc. ...................................... 691,299
12,600 CIGNA Corp. ...................................... 1,178,100
16,600 Hartford Financial Services Group, Inc. .......... 928,563
7,500 MBIA, Inc. ....................................... 361,406
7,900 MGIC Investment Corp. ............................ 359,450
------------
3,518,818
------------
Insurance -- Property & Casualty (1.8%):
55,598 Allstate Corp. ................................... 1,237,055
116,092 American International Group, Inc. ............... 13,640,809
13,200 Chubb Corp. ...................................... 811,800
14,700 Lincoln National Corp. ........................... 531,038
9,700 Safeco Corp. ..................................... 192,788
17,034 St. Paul Cos., Inc. .............................. 581,285
------------
16,994,775
------------
Internet Software (1.5%):
171,100 America Online, Inc.*............................. 9,025,525
40,600 Yahoo, Inc.*...................................... 5,029,325
------------
14,054,850
------------
Leisure & Recreation Products (0.0%):
6,800 Brunswick Corp. .................................. 112,625
------------
Leisure & Recreation/Gaming (0.0%):
9,700 Harrah's Entertainment, Inc.*..................... 203,094
------------
Machine Tools & Related Products (0.0%):
6,500 The Black & Decker Corp. ......................... 255,531
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Machinery -- Construction/Mining (0.1%):
26,700 Caterpillar, Inc. ................................ $ 904,462
12,250 Ingersoll-Rand Co. ............................... 493,063
------------
1,397,525
------------
Machinery -- Electrical (0.2%):
32,300 Emerson Electric Co. ............................. 1,950,112
7,000 W.W. Grainger, Inc. .............................. 215,688
------------
2,165,800
------------
Machinery -- Farm (0.1%):
1,700 Briggs & Stratton Corp. .......................... 58,225
17,500 Deere & Co. ...................................... 647,500
------------
705,725
------------
Machinery--General Industrial (0.3%):
7,100 Cooper Industries, Inc. .......................... 231,194
15,300 Dover Corp. ...................................... 620,606
22,500 Illinois Tool Works, Inc. ........................ 1,282,500
8,425 Parker Hannifin Corp. ............................ 288,556
------------
2,422,856
------------
Machinery -- Thermal Processor (0.0%):
12,000 Thermo Electron Corp. *........................... 252,750
------------
Media Conglomerates (2.2%):
96,520 Time Warner, Inc. ................................ 7,335,519
114,276 Viacom, Inc., Class B*............................ 7,792,194
155,250 Walt Disney Co.*.................................. 6,025,641
------------
21,153,354
------------
Medical -- Biomedical/Genetic (0.6%):
76,600 Amgen, Inc.*...................................... 5,381,150
11,300 Biogen, Inc.*..................................... 728,850
------------
6,110,000
------------
Medical -- Drugs (8.1%):
115,300 Abbott Laboratories............................... 5,138,056
7,700 ALZA Corp.*....................................... 455,263
97,900 American Home Products Corp. ..................... 5,751,625
148,800 Bristol-Myers Squibb Co. ......................... 8,667,600
81,800 Eli Lilly & Co. .................................. 8,169,775
13,000 MedImmune, Inc.*.................................. 962,000
171,250 Merck & Co., Inc. ................................ 13,122,031
467,400 Pfizer, Inc. ..................................... 22,435,199
93,912 Pharmacia Corp. .................................. 4,854,077
110,200 Schering-Plough Corp. ............................ 5,565,100
7,200 Watson Pharmaceutical, Inc.*...................... 387,000
------------
75,507,726
------------
Medical -- Health Medical Organization (0.1%):
12,400 Humana, Inc.*..................................... 65,875
12,700 UnitedHealth Group, Inc. ......................... 1,089,025
------------
1,154,900
------------
</TABLE>
Continued
38
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Medical -- Hospital (0.2%):
42,249 HCA-The Healthcare Corp. ........................... $ 1,283,313
23,400 Tenet Healthcare Corp.*............................. 631,800
------------
1,915,113
------------
Medical -- Nursing Homes (0.0%):
7,600 Manor Care, Inc.*................................... 53,200
------------
Medical -- Outpatient/Home Care (0.0%):
28,600 HEALTH SOUTH Corp.*................................. 205,563
------------
Medical -- Wholesale Drug (0.2%):
21,100 Cardinal Health, Inc. .............................. 1,561,400
------------
Medical Instruments (0.6%):
8,500 Biomet, Inc. ....................................... 326,719
31,100 Boston Scientific Corp.*............................ 682,256
89,600 Medtronic, Inc. .................................... 4,463,200
6,300 St. Jude Medical, Inc.*............................. 289,013
------------
5,761,188
------------
Medical Products (0.3%):
21,800 Baxter International, Inc. ......................... 1,532,813
23,100 Guidant Corp.*...................................... 1,143,450
5,100 Mallinckrodt, Inc. ................................. 221,531
------------
2,897,794
------------
Medical/Dental Supplies (1.2%):
4,300 Bausch & Lomb, Inc. ................................ 332,713
19,000 Becton, Dickinson & Co. ............................ 545,063
3,800 C.R. Bard, Inc. .................................... 182,875
104,400 Johnson & Johnson................................... 10,635,749
------------
11,696,400
------------
Metal -- Gold (0.1%):
29,600 Barrick Gold Corp. ................................. 538,349
19,200 Homestake Mining Co. ............................... 132,000
12,715 Newmont Mining Corp. ............................... 274,962
24,600 Placer Dome, Inc. .................................. 235,238
------------
1,180,549
------------
Metal -- Miscellaneous (0.0%):
14,500 Inco, Ltd.*......................................... 222,938
------------
Metal -- Non-Ferrous (0.1%):
16,450 Alcan Aluminum, Ltd. ............................... 509,950
12,100 Freeport-McMoran Copper & Gold, Inc., Class B*...... 111,925
------------
621,875
------------
Metal -- Processing & Fabrication (0.0%):
4,700 Timken Co. ......................................... 87,537
6,625 Worthington Industries, Inc. ....................... 69,563
------------
157,100
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Metals (0.2%):
65,176 Alcoa, Inc. .................................... $ 1,890,104
6,117 Phelps Dodge Corp. ............................. 227,476
------------
2,117,580
------------
Motorcycle/Motor Scooter (0.1%):
22,700 Harley-Davidson, Inc. .......................... 873,950
------------
Multimedia (0.2%):
32,500 Seagram Co., Ltd. .............................. 1,885,000
------------
Non-Hazardous Waste Disposal (0.0%):
14,300 Allied Waste Industries, Inc.*.................. 143,000
------------
Office Automation & Equipment (0.2%):
19,900 Pitney Bowes, Inc. ............................. 796,000
49,834 Xerox Corp. .................................... 1,034,056
------------
1,830,056
------------
Office Supplies & Forms (0.1%):
8,500 Avery Dennison Corp. ........................... 570,563
5,600 Deluxe Corp. ................................... 131,950
------------
702,513
------------
Oil & Gas (0.3%):
9,600 Anadarko Petroleum Corp. ....................... 473,400
8,600 Apache Corp. ................................... 505,788
46,986 Conoco, Inc., Class B........................... 1,154,093
15,640 Transocean Sedco Forex, Inc. ................... 835,763
------------
2,969,044
------------
Oil & Gas -- Drilling (0.0%):
6,900 Rowan Cos., Inc.*............................... 209,588
------------
Oil -- Field Services (0.5%):
33,100 Halliburton Co. ................................ 1,561,906
41,200 Schlumberger, Ltd. ............................. 3,074,550
------------
4,636,456
------------
Oil -- International Integrated (3.9%):
49,200 Chevron Corp. .................................. 4,172,775
258,970 Exxon Mobil Corp. .............................. 20,329,144
160,800 Royal Dutch Petroleum Co., ADR.................. 9,899,250
41,500 Texaco, Inc. ................................... 2,209,875
------------
36,611,044
------------
Oil -- Production/Pipeline (0.5%):
16,000 Coastal Corp. .................................. 974,000
53,700 Enron Corp. .................................... 3,463,650
------------
4,437,650
------------
Oil -- U.S. Exploration & Production (0.1%):
16,265 Burlington Resources, Inc. ..................... 622,136
18,923 Union Pacific Resources Group, Inc. ............ 416,306
------------
1,038,442
------------
</TABLE>
Continued
39
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Oil -- U.S. Integrated (0.4%):
6,800 Amerada Hess Corp. ................................. $ 419,900
7,173 Kerr-Mcgee Corp. ................................... 422,759
27,600 Occidental Petroleum Corp. ......................... 581,325
19,000 Phillips Petroleum Co. ............................. 963,062
18,200 Unocal Corp. ....................................... 602,875
23,300 USX-Marathon Group.................................. 583,956
------------
3,573,877
------------
Oil Field Machinery & Equipment (0.1%):
24,680 Baker Hughes, Inc. ................................. 789,760
4,500 McDermott International, Inc. ...................... 39,656
------------
829,416
------------
Oil Refining (0.1%):
5,300 Ashland, Inc. ...................................... 185,831
6,774 Sunoco, Inc. ....................................... 199,410
10,800 Tosco Corp. ........................................ 305,775
------------
691,016
------------
Optical Supplies (0.1%):
9,900 Allergan, Inc. ..................................... 737,550
------------
Paints & Related Products (0.0%):
12,400 Sherwin-Williams Co. ............................... 262,725
------------
Paper & Related Products (0.3%):
4,208 Boise Cascade Corp. ................................ 108,882
16,200 Fort James Corp. ................................... 374,625
12,800 Georgia Pacific Corp. .............................. 336,000
36,137 International Paper Co. ............................ 1,077,322
7,700 Mead Corp. ......................................... 194,425
2,200 Potlatch Corp. ..................................... 72,875
4,200 Temple-Inland, Inc. ................................ 176,400
7,550 Westvaco Corp. ..................................... 187,334
8,400 Williamette Industries, Inc. ....................... 228,900
------------
2,756,763
------------
Photography (0.2%):
23,700 Eastman Kodak Co. .................................. 1,410,150
3,289 Polaroid Corp. ..................................... 59,408
------------
1,469,558
------------
Pipelines (0.3%):
6,050 Columbia Energy Group............................... 397,031
17,100 El Paso Energy Corporation.......................... 871,031
32,600 The Williams Companies, Inc. ....................... 1,359,013
------------
2,627,075
------------
Pollution Control (0.1%):
9,399 Pall Corp. ......................................... 173,882
46,442 Waste Management, Inc.*............................. 882,398
------------
1,056,280
------------
Printers & Related Products (0.1%):
9,600 Lexmark International Group, Inc.*.................. 645,600
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Printing & Publishing (0.0%):
12,065 Dun & Bradstreet Corp. ............................. $ 345,361
------------
Printing -- Commercial (0.0%):
9,600 R.R. Donnelley & Sons Co. .......................... 216,600
------------
Protection -- Safety (0.6%):
126,820 Tyco International, Ltd. ........................... 6,008,098
------------
Publishing -- Books (0.1%):
14,700 McGraw-Hill Cos., Inc. ............................. 793,800
------------
Publishing -- Newspapers (0.4%):
6,700 Dow Jones & Co., ................................... 490,775
20,900 Gannett, Inc. ...................................... 1,250,082
6,300 Knight-Ridder, Inc. ................................ 335,081
12,800 New York Times Co.*................................. 505,600
29,050 Tribune Co. ........................................ 1,016,750
------------
3,598,288
------------
Publishing -- Periodicals (0.0%):
3,900 Meredith Corp. ..................................... 131,625
------------
Restaurants (0.5%):
9,700 Darden Restaurants, Inc. ........................... 157,625
101,500 McDonald's Corp.*................................... 3,343,156
8,000 Starbucks Corp.*.................................... 305,500
11,310 Tricon Global Restaurants*.......................... 319,508
9,100 Wendy's International, Inc. ........................ 162,094
------------
4,287,883
------------
Retail (0.4%):
10,500 Bed Bath & Beyond, Inc.*............................ 380,625
15,300 Best Buy Co.*....................................... 967,725
8,200 Consolidated Stores*................................ 106,088
24,733 Dollar General Corp. ............................... 482,294
24,500 Kohl's Corp.*....................................... 1,362,812
35,200 Staples, Inc.*...................................... 541,200
------------
3,840,744
------------
Retail -- Apparel/Shoes (0.4%):
63,837 Gap, Inc. .......................................... 1,994,906
32,156 Limited, Inc. ...................................... 695,374
10,200 Nordstrom, Inc. .................................... 246,075
23,300 TJX Companies, Inc. ................................ 436,875
------------
3,373,230
------------
Retail -- Consumer Electronics (0.1%):
15,300 Circuit City Stores, Inc. .......................... 507,769
14,456 RadioShack Corp. ................................... 684,853
------------
1,192,622
------------
Retail -- Discount (2.1%):
36,500 Kmart Corp.*........................................ 248,656
18,050 Toys 'R' Us, Inc.*.................................. 262,853
334,050 Wal-Mart Stores, Inc. (b) .......................... 19,249,631
------------
19,761,140
------------
</TABLE>
Continued
40
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Retail -- Drug Store (0.4%):
29,400 CVS Corp. .......................................... $ 1,176,000
3,000 Longs Drug Stores Corp. ............................ 65,250
14,600 Rite Aid Corp.*..................................... 95,813
75,500 Walgreen Co. ....................................... 2,430,156
------------
3,767,219
------------
Retail -- Jewelry (0.0%):
5,400 Tiffany & Co. ...................................... 364,500
------------
Retail -- Major Department Stores (0.4%):
5,316 Harcourt General, Inc. ............................. 289,058
19,500 J.C. Penney, Inc. .................................. 359,531
24,900 May Department Stores Co. .......................... 597,600
28,375 Sears, Roebuck & Co. ............................... 925,734
32,900 Target Corp. ....................................... 1,908,200
------------
4,080,123
------------
Retail -- Regional Department Stores (0.1%):
7,900 Dillards Department Stores, Inc. ................... 96,775
15,700 Federated Department Stores, Inc.*.................. 529,875
------------
626,650
------------
Retail -- Supermarkets (0.3%):
31,797 Albertson's, Inc. .................................. 1,057,250
2,900 Great Atlantic & Pacific Tea Co., Inc. ............. 48,213
62,600 Kroger Co.*......................................... 1,381,112
11,000 Winn-Dixie Stores, Inc. ............................ 157,438
------------
2,644,013
------------
Retail/Wholesale -- Auto Parts (0.0%):
10,400 AutoZone, Inc.*..................................... 228,800
------------
Rubber -- Tires (0.1%):
5,700 Cooper Tire & Rubber Co. ........................... 63,413
11,800 Goodyear Tire & Rubber Co. ......................... 236,000
8,300 The B.F. Goodrich Co. .............................. 282,718
------------
582,131
------------
Savings and loan associations, federally chartered (0.0%):
15,600 Charter One Financial, Inc. ........................ 358,800
------------
Shoes & Related Apparel (0.1%):
20,700 Nike, Inc., Class B................................. 824,118
4,200 Reebok International Ltd.*.......................... 66,938
------------
891,056
------------
Soap & Cleaning Preparations (1.0%):
17,700 Clorox, Inc. ....................................... 793,181
43,700 Colgate-Palmolive Co. .............................. 2,616,538
98,700 Procter & Gamble Co. ............................... 5,650,575
------------
9,060,294
------------
Software Tools (0.0%):
4,600 Autodesk, Inc. ..................................... 159,563
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Steel -- Producers (0.0%):
9,700 Bethlehem Steel Corp.*.............................. $ 34,556
6,500 Nucor Corp. ........................................ 215,719
6,640 USX-U.S. Steel Group................................ 123,255
------------
373,530
------------
Technology (0.1%):
18,300 BMC Software, Inc.*................................. 667,664
------------
Telecom Equipment (0.4%):
55,300 QUALCOMM, Inc.*..................................... 3,318,000
------------
Telecommunications -- Equipment (4.4%):
22,500 ADC Telecommunications, Inc.*....................... 1,887,188
6,960 Allegheny Technologies Inc. ........................ 125,280
6,055 Andrew Corp.*....................................... 203,221
11,500 Comverse Technology, Inc.*.......................... 1,069,500
239,037 Lucent Technologies, Inc. .......................... 14,162,941
159,480 Motorola, Inc. ..................................... 4,634,888
221,300 Nortel Networks Corp., ADR.......................... 15,103,724
11,900 Scientific-Atlanta, Inc. ........................... 886,550
30,200 Tellabs, Inc. *..................................... 2,066,813
------------
40,140,105
------------
Telecommunications -- Services and Equipment (0.6%):
10,600 CenturyTel, Inc. ................................... 304,750
65,855 Global Crossing, Ltd*............................... 1,732,810
56,500 Nextel Communications, Inc, Class A*................ 3,457,093
------------
5,494,653
------------
Textile -- Apparel (0.0%):
4,400 Liz Claiborne, Inc. ................................ 155,100
2,400 Russell Corp. ...................................... 48,000
8,900 VF Corp. ........................................... 213,044
------------
416,144
------------
Textile -- Home Furnishings (0.0%):
1,300 Springs Industries, Inc. ........................... 41,844
------------
Tobacco (0.6%):
12,400 Fortune Brands, Inc. ............................... 285,975
177,500 Philip Morris Cos., Inc. ........................... 4,714,844
12,800 U.S.T., Inc. ....................................... 188,000
------------
5,188,819
------------
Tools -- Hand Held (0.0%):
4,350 Snap-On, Inc. ...................................... 115,819
6,800 The Stanley Works................................... 161,500
------------
277,319
------------
Toys/Game/Hobby (0.1%):
13,200 Hasbro, Inc. ....................................... 198,825
31,547 Mattel, Inc. ....................................... 416,026
------------
614,851
------------
</TABLE>
Continued
41
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Transportation (0.1%):
8,300 Kansas City Southern Industries, Inc. ............ $ 736,106
------------
Transportation -- Air Freight (0.1%):
21,720 FDX Corp.*........................................ 825,360
------------
Transportation -- Airline (0.2%):
11,100 AMR Corp.*........................................ 293,456
9,700 Delta Air Lines, Inc. ............................ 490,456
37,837 Southwest Airlines Co. ........................... 716,539
5,300 US Airways Group, Inc.*........................... 206,700
------------
1,707,151
------------
Transportation -- Equipment & Leasing (0.0%):
4,500 Ryder Systems, Inc. .............................. 85,219
------------
Transportation--Railroad (0.2%):
34,300 Burlington Northern Santa Fe Corp. ............... 786,756
16,508 CSX Corp. ........................................ 349,763
28,600 Norfolk Southern Corp. ........................... 425,425
18,600 Union Pacific Corp. .............................. 691,688
------------
2,253,632
------------
Travel Services (0.0%):
9,665 Sabre Holdings Corp. ............................. 275,453
------------
Utilities (0.1%):
8,600 CMS Energy Corp. ................................. 190,275
7,400 Florida Progress Corp. ........................... 346,875
6,400 Pinnacle West Capital Corp. ...................... 216,800
------------
753,950
------------
Utilities -- Electric Power (1.1%):
10,300 Ameren Corp. ..................................... 347,625
24,260 American Electric Power Co. ...................... 718,703
12,035 CINergy Corp. .................................... 306,140
16,600 Consolidated Edison, Inc. ........................ 491,775
11,200 Constellation Energy Group........................ 364,700
10,900 Detroit Edison Co. ............................... 333,131
27,406 Duke Energy Corp. ................................ 1,545,013
26,000 Edison International.............................. 533,000
18,500 Entergy Corp. .................................... 502,969
17,600 First Energy Corp. ............................... 411,400
13,400 Florida Power & Light, Inc. ...................... 663,300
9,300 General Public Utilities Corp. ................... 251,681
8,700 New Century Energies Inc. ........................ 261,000
11,700 Northern States Power Co. ........................ 236,194
13,900 Peco Energy Corp. ................................ 560,344
16,400 Public Service Enterprise Group, Inc. ............ 567,850
22,144 Reliant Energy, Inc. ............................. 654,632
50,500 Southern Co. ..................................... 1,177,281
16,300 Unicom Corp. ..................................... 630,606
------------
10,557,344
------------
Utilities -- Gas Distribution (0.1%):
2,000 Eastern Enterprises............................... 126,000
3,500 NICOR, Inc. ...................................... 114,188
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
COMMON STOCKS (continued)
Utilities -- Gas Distribution (continued)
2,400 ONEOK, Inc. ....................................... $ 62,250
2,700 People's Energy Corp. ............................. 87,413
15,425 Sempra Energy...................................... 262,224
------------
652,075
------------
Utilities -- Telephone (5.7%):
23,500 Alltel Corp. ...................................... 1,455,531
239,651 AT&T Corp. ........................................ 7,578,963
116,440 Bell Atlantic Corp.*............................... 5,916,608
141,200 BellSouth Corp. ................................... 6,018,650
72,900 GTE Corp. ......................................... 4,538,025
255,796 SBC Communications, Inc. .......................... 11,063,176
65,400 Sprint Corp. ...................................... 3,335,400
37,860 US West, Inc. ..................................... 3,246,495
212,898 WorldCom, Inc.*.................................... 9,766,695
------------
52,919,543
------------
Total Common Stocks................................ 935,071,211
------------
INVESTMENT COMPANIES (0.5%):
1,874 Dreyfus Cash Management Money Market Fund.......... 1,874
5,021,356 Federated Prime Value Obligations Money Market
Fund............................................... 5,021,356
------------
Total Investment Companies......................... 5,023,230
------------
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (2.4%):
Bank Note (0.4%):
$ 759,400 First Union National Bank,
6.68%, 11/1/00**................................... 758,990
753,600 Bank of America NA, 6.66%, 6/6/01.................. 753,186
750,430 Keybank National Association,
6.67%, 6/27/01..................................... 750,017
503,000 Comerica Bank, 6.63%, 1/12/01**.................... 501,731
755,000 SPNC Bank, 6.66%, 6/29/01.......................... 750,202
------------
3,514,126
------------
Certificate of Deposit (0.0%):
729,060 Deutsche Bank AG Yankee,
6.67%, 6/29/01..................................... 728,660
------------
Commercial Paper (0.7%):
Banking (0.1%):
999,611 Societe General North America,
7.00%, 7/3/00...................................... 999,611
------------
Diversified Financial Services (0.1%):
750,000 General Electric Capital Corp.,
6.59%, 8/14/00..................................... 743,943
------------
Finance (0.2%):
$ 1,000,000 Ford Motor Credit Corp., 6.63%, 7/14/00............ 997,484
999,209 UBS Finance, 7.13%, 7/5/00......................... 999,209
------------
1,996,693
------------
</TABLE>
Continued
42
<PAGE>
Index Equity Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Commercial Paper (continued)
Medical -- Drugs (0.1%):
998,858 Merck & Co. Inc., 6.86%, 7/7/00................... $ 998,858
------------
Retail -- Discount (0.1%):
750,000 Wal-Mart Stores Inc., 6.63%, 8/15/00.............. 743,808
------------
Utilities (0.1%):
750,000 Bell South Capital Funding, 6.61%, 8/15/00........ 743,808
------------
6,226,721
------------
U.S. Government Agency Obligations
Fannie Mae (0.1%):
753,310 6.57%, 6/7/01..................................... 752,907
------------
Repurchase Agreements (1.2%):
2,800,526 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $3,606,765 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-7/15/38,
market value $2,839,206).......................... 2,800,526
2,724,514 Goldman Sachs & Co., 6.79%, 7/3/00 (Collateralized
by $10,096,905 various Government Agency
Securities, 4.50%-14.00%, 8/15/00-6/20/30, market
value $2,762,235)................................. 2,724,514
1,857,346 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $3,089,058 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $1,888,138).......................... 1,857,346
1,356,235 Prudential Securities Inc., 6.75%, 7/3/00
(Collateralized by $3,449,044 various Government
Agency Securities, 5.00%-6.50%, 10/20/25-4/20/29,
market value $1,374,450).......................... 1,356,235
2,800,533 Salomon Smith Barney, 6.85%, 7/3/00
(Collateralized by $4,541,037 various Government
Agency Securities, 4.50%-9.00%, 9/15/00-6/15/30,
market value $2,839,598).......................... 2,800,533
------------
11,539,154
------------
Total Short-Term Securities Purchased With
Securities Lending Collateral..................... 22,761,568
------------
Total Investments (Cost $487,872,269) (a) -- 102.3%............ 962,856,009
Other assets in excess of liabilities -- (2.3)%................ (22,034,865)
------------
Total Net Assets -- 100.0%..................................... $940,821,144
============
</TABLE>
-------
Percentages indicated are based on net assets of $940,821,144.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $504,517,980
Unrealized depreciation........................................ (29,630,400)
------------
Net unrealized appreciation.................................... $474,887,580
============
</TABLE>
(b) Part of this security has been deposited as initial margin on open future
contracts.
* Non-income producing security.
** Variable rate security. Rate present represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
ADR -- American Depositary Receipt
PLC -- Public Limited Company (British)
At June 30, 2000, the Fund's open long future contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
# of Opening Notional Depreciation Market
Contracts Contract Type Amount on Futures Value
--------- ------------- ---------- ------------ ------
<S> <C> <C> <C> <C>
16 Standard & Poor's $5,968,560 $(96,160) $5,872,400
500, 9/16/00
</TABLE>
See Notes to Financial Statements.
43
<PAGE>
Large Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (91.6%):
Advertising (0.3%):
8,200 Interpublic Group Cos., Inc. ........................ $ 352,600
5,200 Omnicom Group ....................................... 463,125
------------
815,725
------------
Advertising Agencies (0.1%):
2,300 Young & Rubicam Inc. ................................ 131,531
------------
Aerospace & Defense (0.5%):
16,400 Boeing Co. .......................................... 685,725
14,800 Honeywell International, Inc. ....................... 498,575
------------
1,184,300
------------
Applications Software (0.4%):
6,200 Citrix Systems, Inc.*................................ 117,413
6,100 Parametric Technology Corp.*......................... 67,100
4,700 Siebel Systems, Inc.*................................ 768,743
------------
953,256
------------
Auto/Truck -- Original Equipment (0.0%):
2,933 Visteon Corp.*....................................... 35,561
------------
Automotive (0.6%):
22,400 Ford Motor Co. ...................................... 963,200
11,900 General Motors Corp. ................................ 690,944
------------
1,654,144
------------
Banks -- Central U.S. (0.1%):
17,900 Firstar Corp. ....................................... 377,019
------------
Banks -- Major Regional (1.4%):
13,500 Bank of New York Co., Inc. .......................... 627,750
21,300 Bank One Corp. ...................................... 565,781
18,500 First Union Corp. ................................... 459,031
17,200 FleetBoston Financial Corp........................... 584,800
13,200 U.S. Bancorp......................................... 254,100
30,700 Wells Fargo Co. ..................................... 1,189,626
------------
3,681,088
------------
Banks -- Money Center (0.9%):
31,600 Bank of America Corp. ............................... 1,358,800
22,800 Chase Manhattan Corp................................. 1,050,225
------------
2,409,025
------------
Beverages -- Alcoholic (0.4%):
13,500 Anheuser-Busch Co., Inc.............................. 1,008,281
------------
Beverages -- Soft Drinks (1.8%):
54,980 Coca-Cola Co. ....................................... 3,157,913
35,800 PepsiCo, Inc. ....................................... 1,590,863
------------
4,748,776
------------
Broadcasting/Cable (0.9%):
6,400 Clear Channel Communications, Inc.*.................. 480,000
25,600 Comcast Corp., Special Class A*...................... 1,036,800
11,400 MediaOne Group, Inc.*................................ 755,977
------------
2,272,777
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Building Products -- Retail/Wholesale (1.1%):
55,700 Home Depot, Inc.................................. $ 2,781,519
------------
Business Equipment & Services (0.2%):
9,600 Paychex, Inc..................................... 403,200
------------
Cellular Telecom (0.5%):
21,200 Sprint Corp., PCS Group*......................... 1,261,400
------------
Chemicals -- Diversified (0.3%):
19,300 E.I. du Pont de Nemours & Co..................... 844,375
------------
Circuits (0.3%):
8,000 Linear Technology Corp. ......................... 511,500
4,500 Maxim Integrated Products, Inc.*................. 305,719
------------
817,219
------------
Computer Software (6.5%):
3,100 Adobe Systems, Inc............................... 403,000
16,000 Computer Associates International, Inc. ......... 819,000
l9,500 Compuware Corp.*................................. 98,563
128,400 Microsoft Corp.*................................. 10,271,999
64,200 Oracle Corp.*.................................... 5,396,812
------------
16,989,374
------------
Computers -- Local Area Network (3.8%):
154,600 Cisco Systems, Inc.*............................. 9,788,112
------------
Computers -- Mainframe (1.9%):
45,500 IBM Corp. ....................................... 4,985,094
------------
Computers -- Memory Devices (1.8%):
44,800 EMC Corp.*....................................... 3,446,800
10,000 VERITAS Software Corp.*.......................... 1,130,156
------------
4,576,956
------------
Computers -- Micro (1.6%):
31,500 Compaq Computer Corp. ........................... 805,219
57,400 Dell Computer Corp.*............................. 2,830,537
8,200 Gateway 2000, Inc.*.............................. 465,350
------------
4,101,106
------------
Computers -- Mini (2.4%):
19,100 Hewlett-Packard Co. ............................. 2,385,113
40,400 Sun Microsystems, Inc.*.......................... 3,673,875
------------
6,058,988
------------
Computers -- Networking Products (0.4%):
6,000 3Com Corp.*...................................... 345,750
8,500 Network Appliance, Inc.*......................... 684,250
------------
1,030,000
------------
Computers -- Services (0.9%):
20,400 Automatic Data Processing, Inc................... 1,092,675
3,100 Computer Sciences Corp.*......................... 231,531
8,800 Electronic Data Systems Corp. ................... 363,000
7,600 First Data Corp. ................................ 377,150
</TABLE>
Continued
44
<PAGE>
Large Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Computers -- Services (continued)
1,600 Sapient Corp.*....................................... $ 171,100
------------
2,235,456
------------
Cosmetics & Toiletries (0.8%):
6,000 Avon Products, Inc. ................................. 267,000
27,900 Gillette Co. ........................................ 974,756
14,400 Kimberly-Clark Corp. ................................ 826,200
------------
2,067,956
------------
Cruise Lines (0.1%):
11,500 Carnival Corp. ...................................... 224,250
------------
Diversified (5.0%):
217,200 General Electric Co. (b)............................. 11,511,599
7,100 IMS Health, Inc. .................................... 127,800
7,400 Minnesota Mining & Manufacturing Co. ................ 610,500
8,800 United Technologies Corp............................. 518,100
------------
12,767,999
------------
Electrical Components -- Semiconductors (7.0%):
4,900 Altera Corp.*........................................ 499,494
7,900 Analog Devices, Inc.*................................ 600,400
19,700 Applied Materials, Inc.*............................. 1,785,313
5,300 Conexant Systems, Inc.*.............................. 257,713
79,500 Intel Corp. ......................................... 10,628,155
4,000 LSI Logic Corp.*..................................... 216,500
10,100 Micron Technology, Inc.*............................. 889,431
39,800 Texas Instruments, Inc. ............................. 2,733,762
8,300 Xilinx, Inc.*........................................ 685,269
------------
18,296,037
------------
Electronic Components/Instruments (0.3%):
16,200 Solectron Corp.*..................................... 678,375
------------
Electronic Measuring Instruments (0.3%):
9,000 Agilent Technologies, Inc.*.......................... 663,750
------------
Enterprise Software (0.0%):
7,500 PeopleSoft, Inc.*.................................... 125,625
------------
Fiber Optics (0.8%):
7,300 Corning, Inc. ....................................... 1,970,088
------------
Finance (0.5%):
13,800 Associates First Capital Corp., Class A.............. 307,913
4,800 Capital One Financial Corp. ......................... 214,200
21,800 MBNA Corp. .......................................... 591,324
3,700 SLM Holding Corp. ................................... 138,519
------------
1,251,956
------------
Financial -- Consumer Loans (0.1%):
3,300 Providian Financial Corp. ........................... 297,000
------------
Financial -- Investment Bankers (0.7%):
6,800 Merrill Lynch & Co., Inc. ........................... 782,000
32,100 Schwab (Charles) Corp. .............................. 1,079,363
------------
1,861,363
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Financial -- Miscellaneous Services (1.2%):
24,800 American Express Co. ................................ $ 1,292,700
21,100 Morgan Stanley, Dean Witter & Co. ................... 1,756,575
------------
3,049,275
------------
Financial -- Mortgage & Related Services (0.6%):
19,000 Fannie Mae........................................... 991,563
12,800 Freddie Mac.......................................... 518,400
------------
1,509,963
------------
Financial Services -- Diversified (1.5%):
62,500 Citigroup, Inc. ..................................... 3,765,625
------------
Food -- Canned (0.3%):
9,900 Campbell Soup Co..................................... 288,338
8,600 H.J. Heinz Co. ...................................... 376,250
------------
664,588
------------
Food -- Confectionery (0.1%):
2,900 Wm. Wrigley Jr. Co. ................................. 232,544
------------
Food -- Diversified (1.0%):
7,000 Bestfoods............................................ 484,750
7,700 General Mills, Inc. ................................. 294,525
9,700 Kellogg Co. ......................................... 288,575
3,400 Quaker Oats Co. ..................................... 255,425
8,100 Ralston Purina Group ................................ 161,494
21,000 Sara Lee Corp. ...................................... 405,563
14,700 Unilever NV.......................................... 632,099
------------
2,522,431
------------
Food Items -- Wholesale (0.1%):
8,200 Sysco Corp. ......................................... 345,425
------------
Food Products (0.2%):
9,500 Safeway, Inc.*....................................... 428,688
------------
Home Decoration Products (0.1%):
7,100 Newell Rubbermaid, Inc. ............................. 182,825
------------
Instruments -- Scientific (0.2%):
6,100 PE Corp-PE Biosystems Group.......................... 401,838
------------
Insurance -- Brokers (0.2%):
4,050 Marsh & McLennan Cos., Inc. ......................... 422,972
------------
Insurance -- Property & Casualty (1.3%):
28,700 American International Group, Inc. .................. 3,372,250
------------
Internet Software (1.8%):
55,300 America Online, Inc.*................................ 2,917,075
13,000 Yahoo, Inc.*......................................... 1,610,375
------------
4,527,450
------------
Machinery -- Electrical (0.2%):
8,000 Emerson Electric Co. ................................ 483,000
------------
</TABLE>
Continued
45
<PAGE>
Large Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Media Conglomerates (2.1%):
26,200 Time Warner, Inc. ............................... $ 1,991,200
28,373 Viacom, Inc., Class B*........................... 1,934,684
37,950 Walt Disney Co.*................................. 1,472,934
------------
5,398,818
------------
Medical -- Biomedical/Genetic (0.8%):
25,800 Amgen, Inc.*..................................... 1,812,450
5,000 Biogen, Inc.*.................................... 322,500
------------
2,134,950
------------
Medical -- Drugs (9.2%):
38,000 Abbott Laboratories.............................. 1,693,375
24,300 American Home Products Corp. .................... 1,427,625
50,600 Bristol-Myers Squibb Co. ........................ 2,947,450
26,900 Eli Lilly & Co. ................................. 2,686,638
61,200 Merck & Co., Inc. ............................... 4,689,450
156,250 Pfizer, Inc. .................................... 7,499,999
23,200 Pharmacia Corp. ................................. 1,199,150
36,600 Schering-Plough Corp. ........................... 1,848,300
------------
23,991,987
------------
Medical Instruments (0.6%):
29,300 Medtronic, Inc. ................................. 1,459,506
------------
Medical Products (0.3%):
5,700 Baxter International, Inc. ...................... 400,781
8,700 Guidant Corp.*................................... 430,650
------------
831,431
------------
Medical/Dental Supplies (1.6%):
40,000 Johnson & Johnson................................ 4,075,000
------------
Metals (0.2%):
14,600 Alcoa, Inc. ..................................... 423,400
------------
Motorcycle/Motor Scooter (0.1%):
7,400 Harley-Davidson, Inc. ........................... 284,900
------------
Multimedia (0.2%):
8,000 Seagram Co., Ltd. ............................... 464,000
------------
Office Automation & Equipment (0.1%):
7,800 Pitney Bowes, Inc. .............................. 312,000
------------
Office Supplies & Forms (0.1%):
3,200 Avery Dennison Corp. ............................ 214,800
------------
Oil -- Field Services (0.3%):
10,400 Schlumberger, Ltd. .............................. 776,100
------------
Oil -- International Integrated (2.9%):
64,100 Exxon Mobil Corp. ............................... 5,031,850
39,600 Royal Dutch Petroleum Co., ADR................... 2,437,875
------------
7,469,725
------------
Oil -- Production/Pipeline (0.3%):
13,300 Enron Corp. ..................................... 857,850
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Optical Supplies (0.1%):
4,200 Allergan, Inc. ...................................... $ 312,900
------------
Photography (0.1%):
5,900 Eastman Kodak Co. ................................... 351,050
------------
Printers & Related Products (0.1%):
3,500 Lexmark International Group, Inc.*................... 235,375
------------
Protection -- Safety (0.8%):
41,800 Tyco International, Ltd. ............................ 1,980,275
------------
Publishing -- Books (0.1%):
5,000 McGraw-Hill Cos., Inc. .............................. 270,000
------------
Publishing -- Newspapers (0.1%):
2,300 Dow Jones & Co.,..................................... 168,475
------------
Restaurants (0.3%):
25,000 McDonald's Corp.*.................................... 823,438
------------
Retail (0.4%):
4,500 Bed Bath & Beyond, Inc.*............................. 163,125
6,000 Best Buy Co.*........................................ 379,500
9,800 Kohl's Corp.*........................................ 545,125
------------
1,087,750
------------
Retail -- Apparel/Shoes (0.3%):
20,700 Gap, Inc. ........................................... 646,875
------------
Retail -- Consumer Electronics (0.1%):
5,900 RadioShack Corp. .................................... 279,513
------------
Retail -- Discount (2.8%):
123,700 Wal-Mart Stores, Inc. (b)............................ 7,128,213
------------
Retail -- Drug Store (0.3%):
25,400 Walgreen Co. ........................................ 817,563
------------
Retail -- Major Department Stores (0.2%):
8,000 Target Corp. ........................................ 464,000
------------
Retail -- Supermarkets (0.2%):
20,600 Kroger Co.*.......................................... 454,488
------------
Soap & Cleaning Preparations (1.1%):
14,100 Colgate-Palmolive Co. ............................... 844,238
36,600 Procter & Gamble Co. ................................ 2,095,350
------------
2,939,588
------------
Technology (0.1%):
6,900 BMC Software, Inc.*.................................. 251,742
------------
Telecom Equipment (0.4%):
16,700 QUALCOMM, Inc.*...................................... 1,002,000
------------
Telecommunications -- Equipment (5.0%):
7,600 ADC Telecommunications, Inc.*........................ 637,450
3,900 Comverse Technology, Inc.*........................... 362,700
</TABLE>
Continued
46
<PAGE>
Large Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Security Description Market Value
------ -------------------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Telecommunications -- Equipment (continued)
82,900 Lucent Technologies, Inc. ......................... $ 4,911,824
43,500 Motorola, Inc. .................................... 1,264,219
70,200 Nortel Networks Corp., ADR......................... 4,791,150
13,300 Tellabs, Inc.*..................................... 910,219
------------
12,877,562
------------
Telecommunications -- Services and Equipment (0.7%):
14,400 Global Crossing, Ltd*.............................. 378,900
22,600 Nextel Communications, Inc, Class A *.............. 1,382,838
------------
1,761,738
------------
Tobacco (0.4%):
39,900 Philip Morris Cos., Inc. .......................... 1,059,844
------------
Utilities -- Telephone (5.7%):
5,500 Alltel Corp. ...................................... 340,656
65,500 AT&T Corp. ........................................ 2,071,438
30,300 Bell Atlantic Corp.*............................... 1,539,619
37,500 BellSouth Corp. ................................... 1,598,438
19,100 GTE Corp. ......................................... 1,188,975
83,300 SBC Communications, Inc. .......................... 3,602,724
16,000 Sprint Corp. ...................................... 816,000
13,900 US West, Inc. ..................................... 1,191,925
54,200 WorldCom, Inc.*.................................... 2,486,424
------------
14,836,199
------------
Total Common Stocks................................ 235,700,610
------------
INVESTMENT COMPANIES (8.5%):
2,349,354 Dreyfus Cash Management Money Market Fund.......... 2,349,354
18,997,618 Federated Prime Value Obligations Money Market
Fund............................................... 18,997,618
3,820 S&P Depositary Receipt............................. 554,974
------------
Total Investment Companies......................... 21,901,946
------------
Total Investments (Cost $231,181,632) (a) -- 100.1%............ 257,602,556
Liabilities in excess of other assets -- (0.1)%................ (316,115)
------------
Total Net Assets -- 100.0%..................................... $257,286,441
============
</TABLE>
-------
Percentages indicated are based on net assets of $257,286,441.
(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 $ 38,775,760
Unrealized depreciation (12,700,171)
------------
Net unrealized appreciation $ 26,075,589
============
</TABLE>
(b) Part of this security has been deposited as initial margin on open futures
contracts.
* Non-income producing security.
ADR -- American Depositary Receipt
NV -- Naamloze Vennootschap (Dutch Corporation)
At June 30, 2000, the Fund's open long futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
# of Opening Notional Depreciation Market
Contracts Contract Type Amount on Futures Value
--------- ------------- -------- ------------ ------
<S> <C> <C> <C> <C>
51 Standard & Poor's $19,063,610 $(345,335) $18,718,275
500, 9/16/00
</TABLE>
See Notes to Financial Statements.
47
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C> <C> <C>
COMMON STOCKS (98.6%):
Advertising (1.0%):
35,000 Catalina Market Corp.*.................... $ 3,570,000
50,000 Penton Media, Inc. ....................... 1,750,000
70,000 True North Communications................. 3,080,000
-------------
8,400,000
-------------
Aerospace & Defense (0.6%):
35,000 Alliant Techsystems, Inc.*................ 2,360,313
75,000 Newport News Shipbuilding................. 2,756,250
-------------
5,116,563
-------------
Aerospace/Defense Equipment (0.1%):
90,000 AAR Corp. ................................ 1,080,000
-------------
Agricultural Operations (0.1%):
30,000 Agribrands International, Inc.*........... 1,258,125
-------------
Apparel (0.0%):
20,000 Quiksilver, Inc.*......................... 311,250
-------------
Appliances & Household Products (0.1%):
30,000 Salton, Inc.*............................. 1,106,250
-------------
Audio/Video Production (0.4%):
55,000 Harman International Industries, Inc. .... 3,355,000
-------------
Auto/Truck -- Original Equipment (0.4%):
55,000 Arvin Industries, Inc. ................... 955,625
30,000 Detroit Diesel Corp. ..................... 442,500
30,000 Superior Industries International, Inc. .. 772,500
75,000 Tower Automotive, Inc.*................... 937,500
-------------
3,108,125
-------------
Banks -- Central U.S. (0.7%):
170,000 Community First Bankshares, Inc. ......... 2,773,124
100,000 MAF Bancorp, Inc. ........................ 1,818,750
126,500 Republic Bancorp, Inc. ................... 1,130,594
44,200 Sterling Bancshares, Inc. ................ 477,913
-------------
6,200,381
-------------
Banks -- East (0.8%):
100,000 Banknorth Group, Inc.*.................... 1,531,250
27,000 Community Bank System, Inc. .............. 599,063
100,000 Hudson United Bancorp..................... 2,243,749
30,000 Premier National Bancorp, Inc. ........... 386,250
124,000 Roslyn Bancorp, Inc. ..................... 2,059,563
-------------
6,819,875
-------------
Banks -- Midwest (0.3%):
100,000 First Midwest Bancgroup, Inc. ............ 2,325,000
35,000 Irwin Financial Corp. .................... 505,313
-------------
2,830,313
-------------
Banks -- Northeast (0.7%):
81,150 Commerce Bancorp, Inc. ................... 3,732,900
158,400 First Commonwealth Financial Corp. ....... 1,435,500
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Banks -- Northeast (continued)
52,200 Independent Bank Corp. .......................... $ 590,513
-------------
5,758,913
-------------
Banks -- South (0.3%):
40,000 Centura Banks, Inc. ............................. 1,357,500
85,000 Firstbank Corp. ................................. 1,577,813
-------------
2,935,313
-------------
Banks -- Southeast (0.4%):
125,000 BancorpSouth, Inc. .............................. 1,757,813
80,000 F & M National Corp. ............................ 1,680,000
-------------
3,437,813
-------------
Banks -- Southwest (0.2%):
35,700 Southwest Bank of Ft. WorthTexas*................ 740,775
50,000 Texas Regional Bancshares, Inc. ................. 1,268,750
-------------
2,009,525
-------------
Banks -- West (1.4%):
25,000 CVB Financial Corp. ............................. 395,313
35,000 First Republic Bancorp, Inc.*.................... 697,813
44,000 Greater Bay Bancorp.............................. 2,057,000
150,000 Imperial Bancorp*................................ 2,343,749
145,000 Silicon Valley Bankshares*....................... 6,180,624
-------------
11,674,499
-------------
Batteries/Battery Systems (0.1%):
25,000 Rayovac Corp. ................................... 559,375
-------------
Building (0.1%):
40,000 Centex Construction Products, Inc. .............. 907,500
-------------
Building & Construction -- Miscellaneous (0.4%):
75,000 Dal-Tile International, Inc.*.................... 618,750
60,000 Elcor Corp. ..................................... 1,380,000
40,000 Insituform Technologies, Inc.*................... 1,085,000
30,000 Nortek, Inc.*.................................... 592,500
-------------
3,676,250
-------------
Building -- Heavy Construction (0.8%):
125,000 Dycom Industries, Inc.*.......................... 5,750,000
50,000 Granite Construction, Inc. ...................... 1,225,000
-------------
6,975,000
-------------
Building -- Maintenance & Service (0.1%):
55,000 ABM Industries, Inc. ............................ 1,265,000
-------------
Building -- Mobile/Manufacturing & Recreational Vehicles
(0.1%):
38,300 Winnebago Industries, Inc. ...................... 500,294
-------------
Building -- Residential/Commercial (0.6%):
53,400 D. R. Horton, Inc. .............................. 724,238
63,200 Kaufman & Broad Home Corp. ...................... 1,252,150
</TABLE>
Continued
48
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS (continued)
Building -- Residential/ Commercial (continued)
35,400 Pulte Corp. ................................ $ 765,525
30,000 Ryland Group, Inc. ......................... 663,750
59,500 Standard-Pacific Corp. ..................... 595,000
53,300 Toll Brothers, Inc.*........................ 1,092,650
-------------
5,093,313
-------------
Building Products -- Air Conditioning/ Heat (0.1%):
50,000 Watsco, Inc. ............................... 625,000
-------------
Building Products -- Retail/Wholesale (0.1%):
59,900 Hughes Supply, Inc. ........................ 1,183,025
-------------
Business Information (0.3%):
70,000 Primark Corp.*.............................. 2,607,500
-------------
Business Services (0.8%):
65,000 ADVO, Inc.*................................. 2,730,000
38,300 Fair Issac & Co., Inc. ..................... 1,685,200
125,000 Interim Services, Inc.*..................... 2,218,750
-------------
6,633,950
-------------
Cellular Telecom (0.4%):
150,000 Price Communications Corp.*................. 3,534,375
-------------
Chemicals -- Plastic (0.4%):
50,000 Geon Co. ................................... 925,000
50,000 Spartech Corp. ............................. 1,350,000
50,000 Wellman, Inc. .............................. 809,375
-------------
3,084,375
-------------
Chemicals -- Specialty (0.5%):
19,800 Bush Boake Allen, Inc.*..................... 866,250
75,000 NL Industries, Inc. ........................ 1,143,750
50,000 OM Group, Inc. ............................. 2,200,000
-------------
4,210,000
-------------
Circuits (0.9%):
90,000 Integrated Device Technology, Inc.*......... 5,388,750
35,000 Pericom Semiconductor Corp.*................ 2,380,000
-------------
7,768,750
-------------
Commercial Services (0.7%):
40,000 CDI Corp.*.................................. 815,000
25,000 CoStar Group, Inc.*......................... 626,563
40,000 Maximus, Inc.*.............................. 885,000
50,000 NOVA Corp.*................................. 1,396,875
65,000 Prepaid Legal Services, Inc.*............... 1,941,875
-------------
5,665,313
-------------
Commercial Services -- Finance (0.3%):
30,000 NCO Group, Inc.*............................ 693,750
90,000 The Profit Recovery Group International,
Inc.*....................................... 1,496,250
-------------
2,190,000
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Computer Data Security (1.1%):
50,000 ISS Group, Inc.*.................................... $ 4,936,719
65,000 RSA Security, Inc.*................................. 4,501,250
------------
9,437,969
------------
Computer Hardware Manufacturing (0.1%):
75,000 Micron Electronics, Inc.*........................... 937,500
------------
Computer Software (6.4%):
135,000 Broadvision, Inc.*.................................. 6,859,688
35,000 Documentum, Inc.*................................... 3,128,125
50,000 Excalibur Technologies Corp.*....................... 1,996,875
115,000 FileNET Corp.*...................................... 2,113,125
75,000 Hyperion Solutions Corp.*........................... 2,432,813
104,000 Mercury Interactive Corp.*.......................... 10,061,999
50,000 Micromuse, Inc.*.................................... 8,274,218
100,000 MSC Software Corp.*................................. 931,250
90,000 Peregrine Systems, Inc.*............................ 3,121,875
100,000 Progress Software Corp.*............................ 1,793,750
50,000 Project Software & Development, Inc.*............... 900,000
40,000 Rainbow Technologies, Inc.*......................... 1,945,000
150,000 Sybase, Inc.*....................................... 3,450,000
40,000 Transaction Systems Architects, Inc.*............... 685,000
75,000 Verity, Inc.*....................................... 2,850,000
90,000 Wind River Systems, Inc.*........................... 3,363,750
------------
53,907,468
------------
Computers -- Equipment (0.3%):
50,000 Insight Enterprises, Inc.*.......................... 2,965,625
------------
Computers -- Integrated Systems (1.0%):
85,000 Cerner Corp.*....................................... 2,316,250
50,000 Echelon Corp.*...................................... 2,896,875
25,000 Mercury Computer Systems, Inc.*..................... 807,813
60,000 MICROS Systems, Inc.*............................... 1,113,750
75,000 Systems & Computer Technology Corp.*................ 1,500,000
------------
8,634,688
------------
Computers -- Local Area Network (0.3%):
81,000 Anixter International, Inc.*........................ 2,146,500
------------
Computers -- Memory Devices (0.6%):
70,000 SanDisk Corp.*...................................... 4,283,125
200,000 Western Digital Corp.*.............................. 1,000,000
------------
5,283,125
------------
Computers -- Networking Products (0.3%):
77,500 Visual Networks, Inc.*.............................. 2,208,750
------------
Computers -- Peripheral Equipment (0.7%):
75,000 InFocus Corp.*...................................... 2,414,063
22,400 Printronix, Inc.*................................... 294,000
200,000 S3, Inc.*........................................... 2,950,000
------------
5,658,063
------------
</TABLE>
Continued
49
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Computers -- Services (1.3%):
50,000 Bell & Howell Co.*.............................. $ 1,212,500
35,000 CheckFree Holdings Corp.*....................... 1,804,687
125,000 CIBER, Inc.*.................................... 1,656,250
50,000 Computer Task Group, Inc. ...................... 253,125
75,000 Factset Research Systems, Inc. ................. 2,118,749
100,000 iGATE Capital Corp.*............................ 1,375,000
43,250 MarchFirst, Inc.*............................... 789,313
60,000 PSINet, Inc.*................................... 1,507,500
------------
10,717,124
------------
Construction (0.1%):
84,200 Morrison Knudsen Corp.*......................... 610,450
------------
Consulting Services (0.3%):
25,000 Diamond Technology Partners, Inc.*.............. 2,200,000
------------
Consumer Non-Durable (0.1%):
125,000 Wolverine World Wide, Inc. ..................... 1,234,375
------------
Consumer Products -- Miscellaneous (0.1%):
43,500 Oneida, Ltd. ................................... 772,125
------------
Containers -- Paper & Plastic (0.1%):
100,000 Longview Fibre Co. ............................. 1,106,250
------------
Cosmetics & Toiletries (0.1%):
100,000 Playtex Products, Inc.*......................... 1,131,250
------------
Data Processing & Reproduction (1.2%):
100,000 American Management Systems, Inc.*.............. 3,282,813
100,000 Choicepoint, Inc.*.............................. 4,187,500
50,000 CSG Systems International, Inc.*................ 2,803,125
------------
10,273,438
------------
Data Processing -- Management (0.1%):
100,000 Informix Corp.*................................. 743,750
------------
Distribution/Wholesale (0.1%):
125,000 Brightpoint, Inc.*.............................. 1,082,031
------------
Diversified (1.1%):
50,000 Clarcor, Inc. .................................. 993,750
100,000 Federal Signal Corp. ........................... 1,650,000
60,800 Gencorp, Inc. .................................. 486,400
80,000 Imation Corp.*.................................. 2,350,000
80,000 Manitowoc Co., Inc. ............................ 2,140,000
45,900 MascoTech, Inc. ................................ 496,294
50,000 Triarc Cos., Inc.*.............................. 1,025,000
------------
9,141,444
------------
Drug Delivery Systems (0.1%):
33,000 Noven Pharmaceuticals, Inc.*.................... 992,063
------------
Electrical Components -- Semiconductors (3.6%):
220,000 Cypress Semiconductor Corp.*.................... 9,295,000
136,700 General Semiconductor, Inc.*.................... 2,016,325
180,000 International Rectifier Corp.*.................. 10,079,999
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Electrical Components --Semiconductors (continued)
50,000 LTX Corp.*........................................ $ 1,746,875
100,000 MEMC Electronic Materials, Inc.*.................. 1,800,000
30,000 PMC-Sierra, Inc.*................................. 5,330,625
------------
30,268,824
------------
Electrical Equipment (0.9%):
90,000 C&D Technologies, Inc. ........................... 5,085,000
30,000 United Illuminating Co. .......................... 1,312,500
100,000 World Access, Inc.*............................... 1,106,250
------------
7,503,750
------------
Electronic -- Manufacturing & Machinery (1.0%):
75,000 Kulicke & Soffa Industries, Inc.*................. 4,453,125
60,000 PRI Automation, Inc.*............................. 3,923,438
------------
8,376,563
------------
Electronic -- Miscellaneous Components (3.3%):
50,000 Audiovox Corp.*................................... 1,096,875
100,000 CTS Corp. ........................................ 4,500,000
70,000 Littelfuse, Inc.*................................. 3,430,000
35,000 Park Electrochemical Corp. ....................... 1,262,188
70,000 Photronics Corp.*................................. 1,986,250
60,000 Plexus Corp.*..................................... 6,779,999
50,000 RadiSys Corp.*.................................... 2,837,500
70,000 Sanmina Corp.*.................................... 5,985,000
------------
27,877,812
------------
Electronic Components -- Semiconductors (0.4%):
25,000 Artisan Components, Inc.*......................... 271,875
75,000 ATMI, Inc.*....................................... 3,487,500
------------
3,759,375
------------
Electronic Components -- Semiconductors (0.2%):
100,000 C-Cube Microsystems, Inc.*........................ 1,962,500
------------
Electronic Components/Instruments (2.9%):
30,000 Applied Micro Circuits Corp.*..................... 2,962,500
100,000 Artesyn Technologies, Inc.*....................... 2,781,250
85,000 Cable Design Technologies*........................ 2,847,500
150,000 Lam Research Corp.*............................... 5,624,999
100,000 Methode Electronics, Inc. -- Class A.............. 3,862,500
50,000 Pioneer Standard Electronics, Inc. ............... 737,500
20,000 QLogic Corp.*..................................... 1,321,250
50,000 Technitrol, Inc. ................................. 4,843,750
------------
24,981,249
------------
Electronic Measuring Equipment (0.9%):
100,000 Tektronix, Inc. .................................. 7,400,000
------------
Electronic Measuring Instruments (0.2%):
15,000 Orbotech, Ltd.*................................... 1,393,125
------------
Electronic Measuring Machines (0.1%):
85,000 Genrad, Inc.*..................................... 765,000
------------
</TABLE>
Continued
50
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Electronic Parts -- Distribution (0.5%):
25,000 Avnet, Inc. .................................... $ 1,481,250
100,000 Kent Electronics Corp.*......................... 2,981,250
------------
4,462,500
------------
Electronic Products -- Miscellaneous (0.8%):
100,300 Allen Telecom, Inc.*............................ 1,774,056
70,000 Kopin Corp.*.................................... 4,847,500
------------
6,621,556
------------
Electronics -- Military (0.3%):
40,000 L-3 Communications Holdings, Inc.*.............. 2,282,500
------------
Engineering (0.2%):
60,000 Jacobs Engineering Group, Inc.*................. 1,961,250
------------
Enterprise Software (0.1%):
50,000 Brio Technology, Inc.*.......................... 1,059,375
------------
Entertainment (0.1%):
75,000 Vail Resorts, Inc.*............................. 1,223,438
------------
Fertilizers (0.2%):
45,000 The Scotts Company*............................. 1,642,500
------------
Fiber Optics (0.4%):
70,000 C-Cor.net Corp.*................................ 1,890,000
27,000 NorthEast Optic Network, Inc.*.................. 1,663,875
------------
3,553,875
------------
Finance (0.4%):
150,000 Metris Companies, Inc. ......................... 3,768,750
------------
Financial -- Consumer Loans (0.4%):
200,000 AmeriCredit Corp.*.............................. 3,400,000
------------
Financial -- Investment Banker/Broker (1.6%):
23,500 Advest Group, Inc. ............................. 492,031
50,000 Ameritrade Holding Corp.- Class A*.............. 581,250
40,000 Dain Rauscher Corp. ............................ 2,640,000
50,000 E*Trade Group, Inc.*............................ 825,000
100,000 Investment Technology Group, Inc.*.............. 3,949,999
60,000 Jefferies Group, Inc. .......................... 1,211,250
100,000 Morgan Keegan, Inc. ............................ 1,475,000
35,000 National Discount Brokers Group*................ 1,115,625
35,000 Southwest Securities Group, Inc. ............... 1,303,750
------------
13,593,905
------------
Financial -- Investment Management Cos. (0.7%):
75,000 Allied Capital Corp. ........................... 1,275,000
100,000 Eaton Vance Corp. .............................. 4,625,000
------------
5,900,000
------------
Financial -- Leasing Company (0.1%):
35,000 Financial Federal Corp.*........................ 608,125
------------
Financial -- Mortgage & Related Services (0.1%):
40,000 Triad Guaranty, Inc.*........................... 917,500
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Financial -- Savings & Loan (0.7%):
100,686 Downey Financial Corp. ............................. $ 2,919,894
70,000 FirstFed Financial Corp.*........................... 988,750
100,000 Staten Island Bancorp, Inc. ........................ 1,762,500
40,000 Westcorp............................................ 477,500
------------
6,148,644
------------
Financial Services -- Diversified (0.1%):
100,000 Phoenix Investment Partners Ltd. ................... 1,050,000
------------
Food -- Canned (0.1%):
35,000 International Home Foods, Inc. *.................... 732,813
------------
Food -- Diversified (0.2%):
70,000 Ralcorp Holding, Inc. *............................. 857,500
60,000 The Earthgrains Co. ................................ 1,166,250
------------
2,023,750
------------
Food -- Flour & Grain (0.1%):
50,600 International Multi-Foods Corp. .................... 876,013
------------
Gas -- Distribution (0.2%):
90,000 Vectren Corp. ...................................... 1,552,500
------------
Glass Products (0.1%):
36,200 Libbey, Inc. ....................................... 1,162,925
------------
Health Care (0.5%):
125,000 IDEXX Laboratories, Inc. *.......................... 2,859,375
28,000 Patterson Dental Company............................ 1,428,000
------------
4,287,375
------------
Hotels & Lodging (0.1%):
100,000 Prime Hospitality Corp. *........................... 943,750
------------
Human Resources (0.2%):
10,000 Hall, Kinion & Associates, Inc. *................... 333,125
35,000 Korn/Ferry International *.......................... 1,109,063
------------
1,442,188
------------
Industrial -- Automotive/Robotics (0.1%):
56,000 Esterline Technologies Corp. *...................... 833,000
------------
Instruments -- Control (0.3%):
100,000 Roper Industries, Inc. ............................. 2,562,500
------------
Instruments -- Scientific (1.2%):
76,500 Dionex Corp. *...................................... 2,046,375
125,000 PerkinElmer, Inc. .................................. 8,265,625
------------
10,312,000
------------
Insurance (0.2%):
53,500 StanCorp Financial Group, Inc. ..................... 1,718,688
------------
Insurance -- Accident & Health (0.1%):
25,000 RLI Corp. .......................................... 868,750
------------
</TABLE>
Continued
51
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Insurance -- Brokers (0.8%):
125,000 Arthur J. Gallagher & Co. ........................ $ 5,250,000
47,200 Hilb, Rogal & Hamilton Co. ....................... 1,637,250
17,500 Quotesmith.com, Inc. *............................ 37,734
------------
6,924,984
------------
Insurance -- Life (0.3%):
40,000 Amerus Life Holdings, Inc. ....................... 825,000
50,000 Delphi Financial Group *.......................... 1,696,875
------------
2,521,875
------------
Insurance -- Multi-Line (0.4%):
100,000 Enhance Financial Services Group, Inc. ........... 1,437,500
100,000 FBL Financial Group, Inc.- Class A................ 1,575,000
------------
3,012,500
------------
Insurance -- Property & Casualty (0.3%):
50,000 Fidelity National Financial, Inc. ................ 915,625
60,000 First American Financial Corp. ................... 858,750
25,000 Philadelphia Consolidated Holding Corp. .......... 420,313
30,000 SCPIE Holdings, Inc. ............................. 615,000
------------
2,809,688
------------
Internet Content (0.5%):
50,000 24/7 Media, Inc. *................................ 781,250
20,000 DoubleClick, Inc. *............................... 762,500
100,000 S1 Corp. *........................................ 2,331,250
------------
3,875,000
------------
Internet Software (0.3%):
50,000 CyberSource Corp. *............................... 690,625
40,375 EarthLink, Inc. *................................. 623,289
20,000 Exodus Communications, Inc. *..................... 921,250
------------
2,235,164
------------
Lasers -- Systems/Components (2.1%):
75,000 Coherent, Inc. *.................................. 6,290,624
100,000 Cymer, Inc. *..................................... 4,775,000
90,000 Electro Scientific Industries, Inc. *............. 3,962,813
100,000 VISX, Inc. *...................................... 2,787,500
------------
17,815,937
------------
Leisure & Recreation Products (0.2%):
55,000 Polaris Industries, Inc. ......................... 1,760,000
------------
Leisure & Recreation/Gaming (0.5%):
104,400 Aztar Corp. *..................................... 1,618,200
50,000 Pinnacle Entertainment, Inc.*..................... 971,875
75,000 Station Casinos, Inc. *........................... 1,875,000
------------
4,465,075
------------
Machine Tools & Related Products (0.5%):
125,000 Applied Power, Inc. .............................. 4,187,500
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Machinery -- Construction/Mining (0.2%):
100,000 JLG Industries, Inc. ............................. $ 1,187,500
25,000 Terex Corp. *..................................... 353,125
------------
1,540,625
------------
Machinery -- Electrical (0.3%):
90,000 Baldor Electric Co. .............................. 1,676,250
45,000 Smith (A.O.) Corp. ............................... 942,188
------------
2,618,438
------------
Machinery -- General Industrial (0.7%):
50,000 Albany International Corp. -- Class A............. 715,625
42,725 Applied Industrial Technology, Inc.*.............. 699,622
50,000 Graco, Inc. ...................................... 1,625,000
62,425 Idex Corp. ....................................... 1,970,289
100,000 Paxar Corp. ...................................... 1,193,750
------------
6,204,286
------------
Medical -- Biomedical/Genetic (4.4%):
25,000 Affymetrix, Inc. *................................ 4,128,125
110,000 Alkermes, Inc. *.................................. 5,183,750
75,000 Cell Genesys, Inc. *.............................. 2,100,000
100,000 Creative Biomolecules, Inc. *..................... 1,400,000
11,000 CuraGen Corp. *................................... 418,688
50,000 Digene Corp. *.................................... 2,018,750
50,000 IDEC Pharmaceuticals Corp. *...................... 5,865,624
20,000 Invitrogen Corp. *................................ 1,504,063
86,000 Millennium Pharmaceuticals *...................... 9,621,249
3,000 Myriad Genetics, Inc. *........................... 444,234
50,000 Nanogen, Inc. *................................... 2,121,875
50,000 Transkaryotic Therapies, Inc. *................... 1,837,500
------------
36,643,858
------------
Medical -- Biotechnology (0.2%):
45,000 Biomatrix, Inc. *................................. 1,018,125
40,000 Cryolife, Inc. *.................................. 920,000
------------
1,938,125
------------
Medical -- Drugs (3.7%):
75,000 Alpharma, Inc. ................................... 4,668,750
100,000 Carter-Wallace, Inc. ............................. 2,012,500
75,000 Celgene Corp. *................................... 4,415,625
22,000 Corixa Corp. *.................................... 944,625
125,000 Dura Pharmaceuticals, Inc. *...................... 1,796,875
75,000 Guilford Pharmaceuticals, Inc. *.................. 1,129,688
127,500 Jones Pharma, Inc. ............................... 5,092,030
175,000 Ligand Pharmaceuticals, Inc. *.................... 2,307,813
85,000 Medicis Pharmaceuticals, Inc. *................... 4,845,000
31,627 Priority Healthcare Corp., Series B *............. 2,350,281
60,000 SuperGen, Inc. *.................................. 2,175,000
------------
31,738,187
------------
Medical -- Health Medical Organization (0.6%):
149,800 Mid Atlantic Medical Services, Inc. *............. 2,022,300
60,000 Trigon Healthcare, Inc. *......................... 3,093,750
------------
5,116,050
------------
</TABLE>
Continued
52
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Medical -- Hospital (0.2%):
52,900 Province Healthcare Co.*............................ $ 1,911,013
------------
Medical -- Hospital Services (0.9%):
100,000 Quest Diagnostics, Inc.*............................ 7,475,000
------------
Medical -- Outpatient/Home Care (0.5%):
125,000 Apria Healthcare Group, Inc.*....................... 1,531,250
125,000 Orthodontic Centers of America*..................... 2,828,125
------------
4,359,375
------------
Medical -- Wholesale Drug (0.7%):
50,000 AmeriSource Health Corp. -- Class A*................ 1,550,000
85,000 Bindley Western Industries, Inc. ................... 2,247,188
40,000 Express Scripts, Inc. -- Class A*.................. 2,485,000
------------
6,282,188
------------
Medical Equipment & Supplies (0.4%):
60,000 Conmed Corp.*....................................... 1,552,500
85,000 Respironics, Inc.*.................................. 1,530,000
------------
3,082,500
------------
Medical Instruments (0.2%):
75,000 Acuson Corp.*....................................... 1,012,500
63,300 Kensey Nash Corp.*.................................. 704,213
------------
1,716,713
------------
Medical Products (0.8%):
50,000 Diagnostic Products Corp. .......................... 1,600,000
100,000 Haemonetics Corp.*.................................. 2,100,000
125,000 Owens & Minor, Inc. ................................ 2,148,438
40,000 West Pharmaceutical Services, Inc. ................. 865,000
------------
6,713,438
------------
Medical Supplies (0.1%):
100,000 STERIS Corp.*....................................... 887,500
------------
Medical/Dental Supplies (0.2%):
50,000 Cooper Cos., Inc. .................................. 1,818,750
------------
Metal -- Iron (0.1%):
25,000 Cleveland Cliffs, Inc. ............................. 645,313
------------
Metal -- Miscellaneous (0.1%):
37,400 Brush Wellman, Inc. ................................ 584,375
------------
Metal -- Processing & Fabrication (0.4%):
30,000 Commercial Metals Co. .............................. 825,000
85,000 Mueller Industries, Inc.*........................... 2,380,000
25,000 Wolverine Tube, Inc. ............................... 425,000
------------
3,630,000
------------
Metal Products -- Distribution (0.1%):
50,000 Reliance Steel & Aluminum Co. ...................... 956,250
------------
Motion Pictures & Services (0.2%):
100,000 Zomax, Inc.*........................................ 1,312,500
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Network Products (1.6%):
100,000 Apex Inc.*........................................ $ 4,374,999
100,000 Computer Network Technology Corp.*................ 1,737,500
75,000 MMC Networks, Inc.*............................... 4,007,812
75,000 Xircom, Inc.*..................................... 3,557,813
------------
13,678,124
------------
Office Supplies & Forms (0.1%):
62,900 John H. Harland Co. .............................. 939,569
------------
Oil & Gas -- Drilling (0.2%):
30,000 Atwood Oceanics, Inc.*............................ 1,335,000
------------
Oil -- Field Services (1.0%):
100,000 Hanover Compressor Co.*........................... 3,800,000
49,600 Oceaneering International, Inc.*.................. 942,400
40,000 RPC Energy Services, Inc. ........................ 422,500
60,000 Seacor Holdings, Inc.*............................ 2,321,250
40,000 Veritas DGC, Inc.*................................ 1,040,000
------------
8,526,150
------------
Oil -- U.S. Exploration & Production (2.0%):
40,000 Berry Petroleum Co. .............................. 680,000
50,000 Cabot Oil & Gas Corp. ............................ 1,059,375
100,000 Cross Timbers Oil Co. ............................ 2,212,500
60,000 Forest Oil Corp.*................................. 956,250
25,000 Houston Exploration Co.*.......................... 628,125
35,000 HS Resources, Inc.*............................... 1,050,000
50,000 Louis Dreyfus Natural Gas*........................ 1,565,625
70,000 Newfield Exploration Co.*......................... 2,738,750
50,000 Stone Energy Corp.*............................... 2,987,499
40,000 Swift Energy Co.*................................. 1,135,000
100,000 Vintage Petroleum, Inc. .......................... 2,256,250
------------
17,269,374
------------
Oil Refining (0.1%):
30,000 Enterprise Products Partners L.P. ................ 675,000
------------
Paper & Related Products (0.4%):
76,500 Buckeye Technologies, Inc.*....................... 1,678,219
40,000 Chesapeake Corp. ................................. 1,185,000
12,500 Pope & Talbot, Inc. .............................. 200,000
------------
3,063,219
------------
Pharmacy Services (0.1%):
50,000 Advance Paradigm, Inc.*........................... 1,025,000
------------
Pollution Control (0.1%):
40,000 Ionics, Inc.*..................................... 1,225,000
------------
Radio Broadcasting (0.4%):
94,400 Citadel Communications Corp.*..................... 3,298,100
------------
Real Estate (0.1%):
46,000 Webb (Del) Corp.*................................. 704,375
------------
Real Estate Investment Trusts (0.2%):
35,000 Pinnacle Holdings, Inc.*.......................... 1,890,000
------------
</TABLE>
Continued
53
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Restaurants (0.8%):
75,000 Applebee's International, Inc. ................... $ 2,273,438
25,000 CEC Entertainment, Inc.*.......................... 640,625
100,000 Jack in the Box, Inc.*............................ 2,462,499
135,800 Ruby Tuesday, Inc. ............................... 1,705,988
------------
7,082,550
------------
Retail -- Apparel/Shoes (1.3%):
75,000 Ann Taylor Stores Corp.*.......................... 2,484,374
40,000 Brown Shoe Company, Inc. ......................... 520,000
55,500 Burlington Coat Factory Warehouse Corp.*.......... 600,094
60,000 Cole (Kenneth) Productions, Inc.*................. 2,400,000
50,000 Footstar, Inc.*................................... 1,662,500
55,500 Genesco, Inc.*.................................... 891,469
10,000 Hot Topic, Inc.*.................................. 320,000
40,000 Talbots, Inc. .................................... 2,197,500
------------
11,075,937
------------
Retail -- Consumer Electronics (0.1%):
73,900 Handleman Co.*.................................... 923,750
------------
Retail -- Discount (0.3%):
40,000 99 Cents Only Stores*............................. 1,595,000
58,000 Shopko Stores, Inc.*.............................. 891,750
------------
2,486,750
------------
Retail -- General Merchandise (0.1%):
36,500 Russ Berrie & Co., Inc. .......................... 702,625
------------
Retail -- Home Furnishings (0.4%):
150,000 La-Z-Boy, Inc. ................................... 2,100,000
40,000 Linens 'N Things, Inc.*........................... 1,085,000
------------
3,185,000
------------
Retail -- Jewelry (0.6%):
65,000 Claire's Stores, Inc. ............................ 1,251,250
100,000 Zale Corp.*....................................... 3,650,000
------------
4,901,250
------------
Retail -- Supermarkets (0.1%):
75,000 Ruddick Corp. .................................... 885,938
------------
Shoes & Related Apparel (0.4%):
115,200 Stride Rite Corp. ................................ 705,600
40,000 Timberland Co.- Class A*.......................... 2,832,500
------------
3,538,100
------------
Soap & Cleaning Preparations (0.2%):
109,600 Church & Dwight Co., Inc. ........................ 1,972,800
------------
Software Tools (0.2%):
125,000 BindView Development Corp.*....................... 1,500,000
------------
Steel -- Pipes & Tubes (0.1%):
40,000 Quanex Corp. ..................................... 595,000
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Steel -- Producers (0.4%):
75,000 AK Steel Holding Corp. ............................. $ 600,000
30,000 Carpenter Technology Corp. ......................... 633,750
45,000 Lone Star Technologies, Inc. *...................... 2,081,250
35,000 Steel Dynamics, Inc. *.............................. 317,188
------------
3,632,188
------------
Telecom Services (1.2%):
35,000 Arguss Communications, Inc. *....................... 660,625
45,000 Illuminet Holdings, Inc. *.......................... 2,289,375
25,000 Leap Wireless International, Inc. *................. 1,175,000
75,000 MGC Communications, Inc. *.......................... 4,495,312
150,000 PTEK Holdings, Inc. *............................... 487,500
125,000 TALK.com, Inc. *.................................... 726,563
30,000 US LEC Corp., Class A *............................. 510,000
------------
10,344,375
------------
Telecommunications (0.3%):
85,000 Viatel, Inc. *...................................... 2,427,813
------------
Telecommunications -- Cellular (0.4%):
30,000 VoiceStream Wireless Corp. *........................ 3,488,438
------------
Telecommunications -- Equipment (1.9%):
25,000 Applied Signal Technology, Inc. .................... 289,063
60,000 Com21, Inc. *....................................... 1,500,000
25,000 Comdial Corp. *..................................... 110,938
50,000 Plantronics, Inc. *................................. 5,774,999
30,000 Superior Telecom, Inc. *............................ 298,125
70,000 Terayon Communications Systems, Inc. ............... 4,496,405
75,000 Titan Corp. *....................................... 3,356,250
------------
15,825,780
------------
Telecommunications -- Satellite (0.3%):
50,000 EchoStar Communications Corp., Class A*............. 1,655,468
75,000 Motient Corp. *..................................... 1,176,563
------------
2,832,031
------------
Telecommunications -- Services and Equipment (1.9%):
150,000 ICG Communications, Inc. *.......................... 3,309,375
150,000 ITC DeltaCom, Inc. *................................ 3,346,875
112,500 Mastec, Inc. *...................................... 4,296,093
74,000 Teligent, Inc., Class A *........................... 1,748,250
70,000 Western Wireless Corp. -- Class A *................. 3,815,000
------------
16,515,593
------------
Telephone -- Integrated (0.3%):
75,000 NEXTLINK Communications, Inc. -- Class A*........... 2,845,313
------------
Textile -- Apparel (0.2%):
40,000 Kellwood Co. ....................................... 845,000
50,000 Phillips-Van Heusen Corp. .......................... 475,000
------------
1,320,000
------------
</TABLE>
Continued
54
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Textile -- Products (0.0%):
75,000 Collins & Aikman Corp. *.......................... $ 389,063
------------
Therapeutics (1.4%):
75,000 ILEX Oncology, Inc. *............................. 2,643,750
45,000 ImClone Systems, Inc. *........................... 3,439,687
76,700 Isis Pharmaceuticals, Inc. *...................... 1,112,150
50,000 MGI Pharma, Inc. *................................ 1,438,281
29,500 Onyx Pharmaceuticals, Inc. *...................... 365,063
75,000 Titan Pharmaceuticals, Inc. *..................... 3,224,999
------------
12,223,930
------------
Tools -- Hand Held (0.1%):
35,200 Toro Co. ......................................... 1,159,400
------------
Transportation -- Air Freight (0.2%):
50,000 Atlas Air, Inc. *................................. 1,793,750
------------
Transportation -- Airline (0.2%):
90,000 America West Holding Corp. -- Class B *........... 1,541,250
------------
Transportation -- Equipment & Leasing (0.3%):
150,000 Rollins Truck Leasing Corp. ...................... 1,040,625
40,000 Xtra Corp. *...................................... 1,577,500
------------
2,618,125
------------
Transportation -- Railroad (0.2%):
40,000 Florida East Coast Industries, Inc. .............. 1,600,000
------------
Transportation -- Shipping (0.2%):
75,000 Overseas Shipholding Group, Inc. ................. 1,846,875
------------
Utilities -- Electric Power (0.7%):
25,000 Black Hills Corp. ................................ 564,063
40,000 Cleco Corp. ...................................... 1,340,000
50,000 CMP Group, Inc. .................................. 1,465,625
50,000 Northwestern Corp. ............................... 1,156,250
50,000 UniSource Energy Corp. ........................... 750,000
30,000 WPS Resources Corp. .............................. 901,875
------------
6,177,813
------------
Utilities -- Gas Distribution (1.0%):
45,000 Atmos Energy Corp. ............................... 787,500
50,000 Eastern Enterprises............................... 3,150,000
60,000 Energen Corp. .................................... 1,308,750
30,400 Laclede Gas Co. .................................. 585,200
40,000 New Jersey Resources Corp. ....................... 1,522,500
50,000 UGI Corp. ........................................ 1,025,000
------------
8,378,950
------------
Utilities -- Water Supply (0.3%):
65,000 United Water Resources, Inc. ..................... 2,266,875
------------
Wire & Cable Products (0.3%):
42,100 Barnes Group, Inc. ............................... 686,756
75,000 Belden, Inc. ..................................... 1,921,875
------------
2,608,631
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Wireless Equipment (1.7%):
35,000 Carrier Access Corp.*.............................. $ 1,850,625
175,000 Digital Microwave Corp.*........................... 6,671,874
75,000 InterDigital Communications Corp.*................. 1,242,188
50,000 Proxim, Inc.*...................................... 4,948,437
------------
14,713,124
------------
Total Common Stocks................................ 840,673,456
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (0.2%):
U.S. Treasury Bills (0.2%):
$ 2,000,000 5.92%, 12/21/00 (b)................................ 1,943,660
------------
Total U.S. Government Agency Obligations........... 1,943,660
------------
INVESTMENT COMPANIES (1.3%):
7,041 Dreyfus Cash Management Money Market Fund.......... 7,041
10,700,986 Federated Prime Value Obligations Money Market
Fund............................................... 10,700,986
------------
Total Investment Companies......................... 10,708,027
------------
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (12.4%):
Bank Note (1.5%):
$ 2,531,350 First Union National Bank, 6.68%, 11/1/00**........ 2,529,967
3,014,400 Bank of America NA, 6.66%, 6/6/01.................. 3,012,744
3,001,700 Keybank National Association, 6.67%, 6/27/01....... 3,000,068
2,011,000 Comerica Bank, 6.63%, 1/12/01**.................... 2,006,925
2,515,000 SPNC Bank, 6.66%, 6/29/01.......................... 2,500,672
------------
13,050,376
------------
Certificate of Deposit (0.3%):
2,430,200 Deutsche Bank AG Yankee, 6.67%, 6/29/01............ 2,428,866
------------
Commercial Paper (2.2%):
Banking (0.4%):
3,498,639 Societe General North America, 7.00%, 7/3/00....... 3,498,639
------------
Diversified Financial Services (0.2%):
2,000,000 General Electric Capital Corp., 6.59%, 8/14/00..... 1,983,848
------------
Finance (0.8%):
3,500,000 Ford Motor Credit Corp., 6.63%, 7/14/00............ 3,491,193
3,497,231 UBS Finance, 7.13%, 7/5/00......................... 3,497,231
------------
6,988,424
------------
Medical-Drugs (0.4%):
3,496,004 Merck & Co. Inc., 6.86%, 7/7/00.................... 3,496,004
------------
</TABLE>
Continued
55
<PAGE>
Small Company Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Commercial Paper (continued)
Retail -- Discount (0.2%):
$ 2,000,000 Wal-Mart Stores Inc., 6.63%, 8/15/00............... $ 1,983,489
------------
Utilities (0.2%):
2,000,000 Bell South Capital Funding, 6.61%, 8/15/00, 6.61%,
8/15/00............................................ 1,983,489
------------
19,933,893
------------
Corporate Note (0.3%):
2,540,000 Toyota Motor Credit, 6.32%, 10/25/00**............. 2,528,639
------------
U.S. Government Agency Obligations
Fannie Mae (0.4%):
3,515,500 6.57%, 6/7/01...................................... 3,513,564
------------
Repurchase Agreements (7.7%):
16,003,004 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $20,610,693 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-7/15/38,
market value $16,224,035).......................... 16,003,004
16,570,125 Goldman Sachs & Co., 6.79%, 7/3/00 (Collateralized
by $27,558,658 various Government Agency
Securities, 4.50%-14.00%, 8/15/00-6/20/30, market
value $16,799,539)................................. 16,570,125
16,002,978 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $26,615,472 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $16,268,288).......................... 16,002,978
16,003,044 Salomon Smith Barney, 6.85%, 7/3/00 (Collateralized
by $25,948,785 various Government Agency
Securities, 4.50%-9.00%, 9/15/00-6/15/30,
market value $16,226,273).......................... 16,003,044
------------
64,579,151
------------
</TABLE>
<TABLE>
<C> <S> <C>
Total Short-Term Securities Purchased With Securities
Lending Collateral....................................... 106,034,489
-------------
Total Investments (Cost $666,495,859) (a) -- 112.6%........... 959,359,632
Liabilities in excess of other assets -- (12.6)%.............. (107,208,174)
-------------
Total Net Assets -- 100.0%.................................... $ 852,151,458
=============
</TABLE>
-------
Percentages indicated are based on net assets of $852,151,458.
(a) Represents cost for Federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $332,683,416
Unrealized depreciation........................................ (39,891,193)
------------
Net unrealized appreciation.................................... $292,792,223
============
</TABLE>
(b) Security has been deposited as initial margin on open futures contracts.
* Non-income producing security.
** Variable rate security. Rate present represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
PLC -- Public Limited Company (British)
At June 30, 2000, the Fund's open long futures contracts were as follows:
<TABLE>
<CAPTION>
Unrealized
# of Opening Notional Depreciation Market
Contracts Contract Type Amount on Futures Value
--------- ------------- ---------- ------------ ------
<S> <C> <C> <C> <C>
35 Russell 2000 $9,145,500 $(71,550) $9,217,050
9/16/00
</TABLE>
See Notes to Financial Statements.
56
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (98.2%):
Australia (2.5%):
Banking (0.6):
20,125 Commonwealth Bank of Australia..................... $ 334,591
106,014 National Australia Bank Ltd. ...................... 1,775,791
108,339 Westpac Banking Corp., Ltd. ....................... 783,840
-------------
2,894,222
-------------
Beverages & Tobacco (0.0%):
80,262 Coca-Cola Amatil Ltd. ............................. 156,621
-------------
Brewery (0.0%):
101,336 Fosters Brewing Group Ltd. ........................ 285,968
-------------
Diversified (0.1%):
56,346 Southcorp Holdings Ltd. ........................... 163,067
20,800 Wesfarmers Ltd. ................................... 166,100
-------------
329,167
-------------
Energy (0.2%):
113,747 Broken Hill Proprietary Co., Ltd. ................. 1,348,847
-------------
Entertainment (0.0%):
31,137 TABCORP Holdings Ltd. ............................. 179,475
-------------
Food Products (0.0%):
67,731 Woolworths Ltd. ................................... 250,713
-------------
Gas Utility (0.0%):
26,533 Australian Gas Light Co., Ltd. .................... 158,513
-------------
Industrial Goods & Services (0.0%):
91,818 CSR Ltd. .......................................... 255,801
-------------
Insurance (0.1%):
64,000 AMP Ltd. .......................................... 653,257
34,020 QBE Insurance Group Ltd. .......................... 166,924
-------------
820,181
-------------
Metals & Mining (0.1%):
66,046 North Ltd. ........................................ 156,639
17,073 Rio Tinto Ltd. .................................... 283,122
67,271 WMC Ltd. .......................................... 301,841
-------------
741,602
-------------
Multi-Media (0.4%):
144,553 News Corp. Ltd. ................................... 1,996,230
12,497 Paperlinx Ltd. .................................... 23,786
-------------
2,020,016
-------------
Packaging (0.0%):
37,493 Amcor Ltd. ........................................ 131,490
-------------
Printing & Publishing (0.3%):
151,829 News Corp., Ltd. .................................. 1,838,267
-------------
Property Trust (0.0%):
31,280 Stockland Trust Group ............................. 66,204
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Australia (continued)
Real Estate (0.1%):
117,125 General Property Trust Units...................... $ 189,172
29,772 Lend Lease Corp., Ltd. ........................... 380,896
90,273 Westfield Trust Units............................. 175,668
-------------
745,736
-------------
Retail Stores (0.0%):
67,936 Coles Myer Ltd. .................................. 261,628
-------------
Services (0.1%):
13,419 Brambles Industries Ltd. ......................... 413,616
-------------
Telecom Equipment (0.5%):
547,900 Telstra Corporation Ltd. ......................... 2,230,420
-------------
15,128,487
-------------
Austria (0.2%):
Banking (0.2%):
7,585 Bank Austria AG................................... 370,963
-------------
Beverages & Tobacco (0.0%):
700 Oesterreichische Brau-Beteiligungs AG............. 31,866
-------------
Building Products (0.0%):
5,064 Wienerberger Baustoffindustrie AG................. 115,484
-------------
Chemicals (0.0%):
400 Lenzing AG........................................ 23,773
-------------
Construction (0.0%):
1,355 Bau Holding AG.................................... 57,021
-------------
Electric Utility (0.0%):
2,069 Oesterreichische Elektrizitaetswirtschafts AG,
Class A*.......................................... 213,208
-------------
Engineering (0.0%):
1,100 VA Technologie AG................................. 58,184
-------------
Insurance (0.0%):
580 EA-Generali AG.................................... 93,683
-------------
Metals & Mining (0.0%):
175 Radex-Heraklith Industriebeteiligungs AG.......... 4,284
-------------
Oil & Gas (0.0%):
1,840 OMV AG............................................ 160,506
-------------
Paper Products (0.0%):
900 Mayr-Melnhof Karton AG............................ 42,748
-------------
Steel (0.0%):
800 Boehler-Uddeholm AG............................... 28,106
-------------
</TABLE>
Continued
57
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Austria (continued)
Transportation (0.0%):
1,800 Austrian Airlines.................................. $ 26,141
1,500 Flughafen Wien AG.................................. 53,618
-------------
79,759
-------------
1,279,585
-------------
Belgium (0.7%):
Banking (0.1%):
12,520 KBC Bancassurance Holding NV....................... 553,271
-------------
Chemicals (0.1%):
7,410 Solvay SA.......................................... 500,772
-------------
Electric Utility (0.0%):
5,840 Suez Lyonnaise Des Eaux SA*........................ 56
-------------
Gas & Electric Utility (0.1%):
3,200 Electrabel SA...................................... 794,172
8,532 Total Fina SA*..................................... 82
-------------
794,254
-------------
Industrial Holding Company (0.1%):
2,000 Groupe Bruxelles Lambert SA........................ 501,343
-------------
Insurance (0.3%):
43,600 Fortis (B)......................................... 1,273,898
-------------
Merchandising (0.0%):
4,400 Delhaize-Le Lion SA................................ 264,245
-------------
Pharmaceuticals (0.0%):
8,000 UCB SA............................................. 295,092
-------------
Technology (0.0%):
1,000 Barco NV........................................... 112,634
-------------
4,295,565
-------------
Denmark (0.6%):
Banking & Finance (0.1%):
3,247 Den Danske Bank.................................... 392,203
-------------
Pharmaceuticals (0.1%):
4,946 Novo Nordisk AS, Class B........................... 845,291
-------------
Telecommunications (0.2%):
14,000 Tele Danmark AS Class B............................ 946,268
-------------
Transportation & Shipping (0.2%):
64 D/S 1912, Class B.................................. 682,587
45 D/S Svendborg AS, Class B.......................... 667,874
-------------
1,350,461
-------------
3,534,223
-------------
Europe (0.0%):
Construction (0.0%):
1,282 Heidelberger Zement AG-VVPR Strip.................. 12
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Finland (3.0%):
Computer Software (0.0%):
6,000 Tietoenator Oyj.................................... $ 201,016
-------------
Forest Products (0.1%):
16,700 UPM-Kymmene Corp. ................................. 416,220
-------------
Telecom Equipment (2.6%):
304,300 Nokia Oyj.......................................... 15,591,306
-------------
Telecommunications (0.3%):
46,200 Sonera OYJ......................................... 2,114,697
-------------
18,323,239
-------------
France (11.8%):
Advertising (0.0%):
600 Publicis SA........................................ 236,388
-------------
Aluminum (0.0%):
2,000 Pechiney SA--A Shares.............................. 83,781
-------------
Auto Parts (0.0%):
5,245 Valeo SA........................................... 281,557
-------------
Automotive (0.1%):
3,162 PSA Peugeot Citroen................................ 637,129
-------------
Banking (0.7%):
27,105 Banque Nationale de Paris.......................... 2,619,044
24,988 Societe Generale................................... 1,509,054
-------------
4,128,098
-------------
Beverages & Tobacco (0.5%):
6,120 LVMH (Moet Hennessy Louis Vuitton)................. 2,533,772
5,400 Pernod Ricard...................................... 295,054
-------------
2,828,826
-------------
Broadcasting/Cable (0.2%):
8,544 Canal Plus......................................... 1,441,474
-------------
Building Products (0.1%):
1,195 Imetal SA.......................................... 139,295
6,721 Lafarge SA......................................... 524,434
-------------
663,729
-------------
Chemicals (0.7%):
5,755 L'Air Liquide...................................... 753,605
51,914 Rhone-Poulenc SA................................... 3,804,476
-------------
4,558,081
-------------
Commercial Services (0.1%):
2,840 Sodexho SA......................................... 517,255
-------------
Computer Software (0.1%):
7,206 Dassault Systems SA................................ 674,310
-------------
Construction (0.2%):
2,066 Bouygues SA........................................ 1,386,313
-------------
</TABLE>
Continued
58
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
France (continued)
Defense (0.2%):
662 Sagem SA........................................... $ 779,272
12,325 Thomson CSF........................................ 487,471
-------------
1,266,743
-------------
Diversified (0.7%):
7,706 Lagardere S.C.A. .................................. 590,951
39,905 Vivendi............................................ 3,536,447
-------------
4,127,398
-------------
Electrical & Electronic (0.1%):
9,900 Schneider SA....................................... 692,773
-------------
Electronic Components/Instruments (0.6%):
57,900 STMicroelectronics NV.............................. 3,663,155
-------------
Energy (1.3%):
49,623 Total SA, Class B.................................. 7,639,438
-------------
Engineering (0.0%):
200 Groupe Gtm......................................... 18,788
-------------
Finance (0.0%):
211 Societe Eurafrance SA.............................. 101,435
-------------
Food & Household Products (0.0%):
1,600 Eridania Beghin-Say SA............................. 157,362
-------------
Food Products (0.8%):
48,036 Carrefour SA....................................... 3,296,952
6,600 Etablissements Economiques du...................... 613,689
9,642 Groupe Danone...................................... 1,284,739
-------------
5,195,380
-------------
Health & Personal Care (1.1%):
4,100 L'OREAL............................................ 3,564,708
47,992 Sanofi-Synthelabo SA*.............................. 2,295,632
-------------
5,860,340
-------------
Industrial Goods & Services (0.1%):
9,801 Michelin Class B, Registered....................... 315,771
-------------
Industrial Holding Company (0.4%):
13,220 Lyonnaise des Eaux SA.............................. 2,325,414
-------------
Insurance (0.8%):
25,500 Axa -- UAP......................................... 4,033,267
6,000 Cap Gemini......................................... 1,061,159
-------------
5,094,426
-------------
Leisure (0.1%):
13,250 Accor SA........................................... 545,267
541 Club Mediterranee SA*.............................. 73,589
-------------
618,856
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
France (continued)
Machine - Diversified (0.0%):
1,600 Sidel SA........................................... $ 130,292
-------------
Medical Supplies (0.0%):
500 Essilor International.............................. 143,884
-------------
Merchandising (0.3%):
7,085 Pinault Printemps Redoute.......................... 1,580,407
-------------
Miscellaneous Materials & Commodities (0.1%):
5,533 Compagnie de Saint Gobain.......................... 751,029
-------------
Office Equipment & Services (0.0%):
3,500 Bic................................................ 172,115
-------------
Real Estate (0.0%):
855 Gecina............................................. 91,877
918 Simco SA........................................... 67,319
800 Unibail............................................ 111,196
-------------
270,392
-------------
Steel (0.0%):
14,600 Unisor Sacilor SA.................................. 178,861
-------------
Telecom Equipment (0.8%):
70,185 Alcatel............................................ 4,622,042
-------------
Telecommunications -- Services & Equipment (1.7%):
68,400 France Telecom..................................... 9,599,090
-------------
71,962,332
-------------
Germany (10.5%):
Automotive (0.9%):
76,487 DaimlerChrysler AG................................. 4,028,916
8,210 MAN AG............................................. 252,234
1,680 MAN AG............................................. 34,785
23,370 Volkswagen AG...................................... 896,090
7,870 Volkswagen AG...................................... 185,208
-------------
5,397,233
-------------
Banking (1.2%):
31,568 Bayerische Vereinsbank AG.......................... 2,060,758
46,760 Deutsche Bank AG................................... 3,872,765
38,960 Dresdner Bank AG................................... 1,620,845
-------------
7,554,368
-------------
Broadcasting & Television (0.1%):
9,000 EM.TV & Merchandising AG........................... 532,305
-------------
Building Products (0.1%):
5,352 Heidelberger Zement AG............................. 331,422
-------------
Chemicals (0.7%):
46,780 BASF AG............................................ 1,903,578
55,640 Bayer AG........................................... 2,176,107
-------------
4,079,685
-------------
</TABLE>
Continued
59
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Germany (continued)
Clothing (0.0%):
3,400 Adidas AG.......................................... $ 188,382
-------------
Computer Software (0.6%):
13,809 SAP AG............................................. 2,071,616
9,900 SAP AG............................................. 1,836,323
-------------
3,907,939
-------------
Construction (0.0%):
5,230 Hochtief AG........................................ 158,174
-------------
Diversified (1.7%):
12,440 Preussag AG........................................ 403,060
45,870 Siemens AG......................................... 6,925,357
59,083 VEBA AG............................................ 2,911,099
-------------
10,239,516
-------------
Food Products (0.0%):
6,000 Kamps AG........................................... 192,677
-------------
Gas & Electric Utility (0.2%):
6,140 RWE AG............................................. 167,449
35,550 RWE AG............................................. 1,199,541
-------------
1,366,990
-------------
Health & Personal Care (0.1%):
7,860 Beiersdorf AG...................................... 663,037
-------------
Health Care (0.1%):
15,900 Schering AG........................................ 884,012
-------------
Insurance (1.8%):
18,670 Allianz AG......................................... 6,800,812
13,461 Muenchener Rueckver AG............................. 4,290,440
-------------
11,091,252
-------------
Machinery & Equipment (0.1%):
8,360 Linde AG........................................... 334,176
-------------
Medical Products (0.1%):
6,600 Fresenius Medical Care AG.......................... 531,442
-------------
Medical-Drugs (0.0%):
5,400 Gehe AG............................................ 173,409
-------------
Metals & Mining (0.1%):
38,640 Thyssen Krupp AG*.................................. 622,271
-------------
Pharmaceuticals (0.1%):
13,100 Merck KGaA......................................... 399,329
-------------
Real Estate Investment/Management (0.1%):
13,500 WCM Beteiligungs & Grundbesitz AG.................. 314,465
-------------
Retail -- Major Department Stores (0.1%):
20,173 Metro AG........................................... 711,625
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Germany (continued)
Retail Stores (0.0%):
8,810 Karstadt AG........................................ $ 235,620
-------------
Retail -- General Merchandise (0.0%):
1,630 Douglas Holding AG................................. 48,438
-------------
Telecommunications (2.3%):
231,600 Deutsche Telecom AG................................ 13,231,760
-------------
Tire & Rubber (0.0%):
9,570 Continental AG..................................... 160,540
-------------
Transportation (0.1%):
28,680 Lufthansa AG....................................... 673,563
-------------
64,023,630
-------------
Hong Kong (2.2%):
Banking (0.2%):
97,973 Bank of East Asia Ltd. ............................ 228,749
108,800 Hang Seng Bank Ltd. ............................... 1,032,863
-------------
1,261,612
-------------
Broadcasting & Television (0.0%):
33,000 Television Broadcasts Ltd. ........................ 220,140
-------------
Diversified (0.2%):
127,500 Swire Pacific Ltd., Class A........................ 745,860
155,500 Wharf Holdings Ltd. ............................... 278,283
-------------
1,024,143
-------------
Electric Utility (0.1%):
141,400 CLP Holdings Ltd. ................................. 658,473
-------------
Electrical & Electronic (0.1%):
67,900 Johnson Electric Holdings Ltd. .................... 642,412
-------------
Gas Utility (0.1%):
486,699 Hong Kong & China Gas Co., Ltd. ................... 546,324
-------------
Hotels & Lodging (0.0%):
122,228 Shangri-La Asia Ltd. .............................. 144,258
-------------
Industrial Holding Company (0.8%):
350,900 Hutchison Whampoa Ltd. ............................ 4,411,554
-------------
Internet Services/Software (0.0%):
150,000 Pacific Century Cyberworks Ltd. ................... 296,343
-------------
Real Estate (0.2%):
378,048 Hysan Development Co., Ltd. ....................... 397,688
118,542 New World Development Co., Ltd. ................... 132,304
135,136 Sun Hung Kai Properties Ltd. ...................... 970,826
-------------
1,500,818
-------------
Real Estate Investment Trust (0.0%):
91,100 Hang Lung Development Co. ......................... 70,706
-------------
</TABLE>
Continued
60
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Hong Kong (continued)
Telecommunications (0.4%):
1,001,074 Hong Kong Telecommunications Ltd. ................. $ 2,202,482
-------------
Transportation (0.1%):
252,000 Cathay Pacific Airways............................. 467,144
-------------
13,446,409
-------------
Ireland (0.3%):
Airlines (0.0%):
14,600 Ryanair Holdings PLC............................... 106,365
-------------
Banking (0.2%):
59,879 Allied Irish Banks*................................ 537,831
-------------
Building Products (0.1%):
26,219 C.R.H. PLC*........................................ 475,019
-------------
Chemicals-Specialty (0.0%):
1,500 SGL Carbon AG...................................... 100,221
-------------
Consumer Goods & Services (0.0%):
29,000 Waterford Wedgewood*............................... 31,691
-------------
Diversified (0.0%):
3,227 DCC PLC*........................................... 28,676
-------------
Finance (0.0%):
13,227 Irish Life & Permanent PLC*........................ 111,958
-------------
Food Products (0.0%):
11,700 Fyffes PLC*........................................ 12,113
8,008 Greencore Group*................................... 21,494
7,300 Kerry Group PLC*................................... 95,798
-------------
129,405
-------------
Hotels & Lodging (0.0%):
1,900 Jurys Hotel Group PLC*............................. 11,383
-------------
Industrial Goods & Services (0.0%):
63,500 Smurfit (Jefferson) Group*......................... 109,567
-------------
Media (0.0%):
20,704 Independent News & Media PLC*...................... 75,417
-------------
Oil & Gas (0.0%):
9,100 Tullow Oil PLC*.................................... 6,979
-------------
Printing & Publishing (0.0%):
1,608 Clondalkin Group PLC*.............................. --
-------------
Telecommunications (0.0%):
129,200 eircom PLC......................................... 346,780
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Ireland (continued)
Transportation & Shipping (0.0%):
1,000 Irish Continental Group PLC*...................... $ 8,148
-------------
2,079,440
-------------
Italy (4.3%):
Agriculture (0.0%):
94,400 Parmalat Finanziaria SpA.......................... 133,746
-------------
Auto Parts (0.0%):
12,360 Magneti Marelli SpA............................... 64,691
-------------
Automotive (0.1%):
22,553 Fiat SpA.......................................... 587,606
9,082 Fiat SpA Preferred................................ 148,436
-------------
736,042
-------------
Banking (0.5%):
297,329 Banca Ambrosiano Veneto SpA....................... 1,336,728
65,650 Banca Ambrosiano Veneto SpA di Risp., (Non-
convertible)...................................... 156,070
29,000 Banca di Roma..................................... 35,750
17,100 Banca Popolare de Milano.......................... 123,759
314,600 Credito Italiano SpA.............................. 1,510,877
-------------
3,163,184
-------------
Banking & Finance (0.1%):
36,470 Mediobanca SpA.................................... 377,566
-------------
Broadcasting & Publishing (0.2%):
75,600 Mediaset SpA...................................... 1,159,510
-------------
Building Products (0.0%):
11,388 Italcementi SpA................................... 107,527
-------------
Electric Utility (0.3%):
447,000 Enel SpA*......................................... 1,988,192
-------------
Finance (0.3%):
97,812 Banc San Paolo Torino............................. 1,743,028
-------------
Insurance (0.5%):
81,463 Assicurazioni Generali............................ 2,803,417
46,542 Riuniune Adriatici de Sicurta SpA................. 513,069
-------------
3,316,486
-------------
Jewelry (0.0%):
21,300 Bulgari SpA....................................... 285,852
-------------
Office Equipment & Services (0.2%):
309,996 Olivetti SpA*..................................... 1,132,176
-------------
Oil & Gas (0.5%):
492,500 ENI SpA........................................... 2,856,238
-------------
Printing & Publishing (0.0%):
11,400 Mondadori (Arnoldo) Editore SpA................... 261,177
-------------
</TABLE>
Continued
61
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Italy (continued)
Real Estate Investment/Management (0.0%):
19,400 Immsi SpA......................................... $ 27,616
-------------
Telecommunications (1.5%):
99,760 Telecom Italia Mobile SpA......................... 503,964
465,360 Telecom Italia Mobile SpA di Risp,
(Non-convertible)................................. 4,773,157
236,900 Telecom Italia SpA................................ 3,270,095
-------------
8,547,216
-------------
Textile Products (0.0%):
115,720 Benetton Group SpA................................ 242,932
-------------
Tire & Rubber (0.1%):
120,700 Pirelli SpA....................................... 318,758
-------------
26,461,937
-------------
Japan (29.2%):
Apparel (0.0%):
2,000 Shimamura Co., Ltd. .............................. 234,212
-------------
Appliances & Household Products (2.0%):
140,000 Matsushita Electric Industrial Co., Ltd. ......... 3,638,890
13,000 Pioneer Electronic Corp. ......................... 507,460
151,000 Sanyo Electric Co. ............................... 1,361,550
81,000 Sharp Corp. ...................................... 1,435,471
60,400 Sony Corp. ....................................... 5,651,714
-------------
12,595,085
-------------
Automotive (2.4%):
66,000 Honda Motor Co., Ltd. ............................ 2,251,952
270,000 Nissan Motor Co., Ltd.*........................... 1,594,968
255,000 Toyota Motor Corp. ............................... 11,641,138
-------------
15,488,058
-------------
Banking (2.2%):
32,000 77 Bank........................................... 256,480
186,000 Asahi Bank Ltd. .................................. 784,072
44,000 Ashikaga Bank Ltd.*............................... 91,492
318,000 Bank of Tokyo--Mitsubishi Ltd. ................... 3,850,211
94,000 Bank of Yokohama Ltd. ............................ 422,017
29,700 Chou Mitsui Trust & Banking Co. .................. 129,690
43,000 Gunma Bank Ltd. .................................. 222,313
57,000 Hokuriku Bank*.................................... 132,531
177,000 Industrial Bank of Japan.......................... 1,345,047
73,000 Joyo Bank......................................... 281,508
95,000 Mitsubishi Trust & Banking Corp. ................. 738,978
283,000 Sakura Bank Ltd. ................................. 1,960,643
59,000 Shizuoka Bank..................................... 501,883
213,000 Sumitomo Bank Ltd. ............................... 2,617,165
152,000 Tokai Bank........................................ 751,369
-------------
14,085,399
-------------
Beverages & Tobacco (0.0%):
11,000 Takara Shuzo Co., Ltd. ........................... 274,996
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Japan (continued)
Brewery (0.2%):
37,000 Asahi Breweries Ltd. .............................. $ 443,784
68,000 Kirin Brewery Co., Ltd. ........................... 851,595
-------------
1,295,379
-------------
Broadcasting & Publishing (0.1%):
11,000 Tokyo Broadcasting System.......................... 476,175
-------------
Building Products (0.1%):
72,400 Taiheiyo Cement Corp. ............................. 151,915
14,000 Tostem Corp. ...................................... 228,919
-------------
380,834
-------------
Cellular/Wireless Telecommunications (1.0%):
225 NTT DoCoMo, Inc. .................................. 6,103,410
-------------
Chemicals (1.3%):
90,000 Asahi Chemical Industry Co., Ltd. ................. 637,987
59,000 Dainippon Ink & Chemicals, Inc. ................... 278,266
26,000 Kaneka Corp. ...................................... 287,274
131,000 Mitsubishi Chemical Corp. ......................... 538,603
46,000 Sekisui Chemical Co., Ltd. ........................ 177,389
27,000 Shin-Etsu Chemical Co., Ltd. ...................... 1,372,948
102,000 Sumitomo Chemical Co. ............................. 615,076
60,000 Takeda Chemical Industries......................... 3,947,014
39,000 Tosoh Corp. ....................................... 197,209
-------------
8,051,766
-------------
Commercial Services (0.1%):
6,000 Benesse Corp. ..................................... 416,818
3,000 Toyo Information Systems Co., Ltd. ................ 167,011
-------------
583,829
-------------
Computer Services (0.0%):
4,000 CSK Corp. ......................................... 124,006
2,000 Fuji Soft ABC, Inc. ............................... 118,902
-------------
242,908
-------------
Computer Systems (0.0%):
3,000 Meitec Corp. ...................................... 119,091
-------------
Construction (0.2%):
39,000 Daiwa House Industry Co., Ltd. .................... 285,308
53,000 Sekisui House Ltd. ................................ 491,420
59,000 Shimizu Corp. ..................................... 168,967
-------------
945,695
-------------
Consumer Goods & Services (0.1%):
22,000 Nippon Sheet Glass Co., Ltd. ...................... 306,499
31,000 Toto Ltd. ......................................... 238,503
-------------
545,002
-------------
Cosmetics/Personal Care (0.3%):
41,000 Kao Corp. ......................................... 1,255,559
26,000 Shiseido Co., Ltd. ................................ 403,019
-------------
1,658,578
-------------
</TABLE>
Continued
62
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Japan (continued)
Data Processing & Reproduction (0.8%):
133,000 Fujitsu Ltd. .................................... $ 4,613,450
2,000 Trans Cosmos, Inc. .............................. 300,941
-------------
4,914,391
-------------
Distribution (0.1%):
89,000 Itochu Corp.*.................................... 450,041
-------------
Diversified (0.0%):
18,000 Yamaha Corp. .................................... 197,181
-------------
Electric Utility (0.6%):
63,800 Kansai Electric Power Co., Inc. ................. 1,144,524
30,500 Tohoku Electric Power............................ 412,234
91,900 Tokyo Electric Power Co. ........................ 2,245,351
-------------
3,802,109
-------------
Electrical & Electronic (1.6%):
18,000 Casio Computer Co., Ltd. ........................ 202,455
13,400 Kyocera Corp. ................................... 2,278,474
156,000 Mitsubishi Electric Corp. ....................... 1,692,679
22,000 Omron Corp. ..................................... 598,857
8,000 Rohm Co., Ltd. .................................. 2,344,012
219,000 Toshiba Corp. ................................... 2,477,687
-------------
9,594,164
-------------
Electrical Equipment (0.3%):
16,000 Alps Electric Co., Ltd. ......................... 297,916
5,000 SMC Corp. ....................................... 942,804
10,000 Taiyo Yuden Co., Ltd. ........................... 627,590
-------------
1,868,310
-------------
Electronic Components/Instruments (1.9%):
7,600 Advantest Corp. ................................. 1,698,842
10,000 Dainippon Screen Manufacturing Co. .............. 95,367
17,100 Fanuc Ltd. ...................................... 1,743,917
3,000 Hirose Electric Co., Ltd. ....................... 468,141
227,000 Hitachi Ltd. .................................... 3,282,656
115,000 NEC Corp. ....................................... 3,619,513
10,000 Nitto Denko Corp. ............................... 386,573
23,000 Yokogawa Electric Corp. ......................... 230,432
-------------
11,525,441
-------------
Engineering (0.1%):
72,000 Kajima Corp. .................................... 230,016
115,000 Kawasaki Heavy Industries Ltd. .................. 176,084
23,000 Kinden Corp. .................................... 144,781
56,000 Obayashi Corp. .................................. 248,238
-------------
799,119
-------------
Entertainment (0.2%):
4,000 NAMCO............................................ 144,421
6,000 Oriental Land Co., Ltd. ......................... 614,169
1,700 Toho Co. ........................................ 290,185
-------------
1,048,775
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Japan (continued)
Finance (1.1%):
11,000 Acom Co., Ltd. .................................... $ 927,397
97,000 Daiwa Securities Co., Ltd. ........................ 1,283,536
133,000 Nomura Securities Co., Ltd. ....................... 3,262,099
24,000 Orient Corp. ...................................... 135,423
6,000 Orix Corp. ........................................ 887,511
-------------
6,495,966
-------------
Finance Services (0.2%):
10,000 Takefuji Corp. .................................... 1,210,758
-------------
Food & Household Products (0.2%):
48,000 Ajinomoto Co., Inc. ............................... 617,004
20,000 Nippon Meat Packers, Inc. ......................... 293,002
12,000 Nissin Food Products Co., Ltd. .................... 306,234
-------------
1,216,240
-------------
Food Products (0.1%):
51,000 Daiei Inc.*........................................ 191,850
19,000 Yamazaki Baking Co., Ltd. ......................... 186,765
-------------
378,615
-------------
Forest Products (0.2%):
59,000 Nippon Paper Industries Co. ....................... 403,737
65,000 Oji Paper Co., Ltd. ............................... 448,482
5,000 Uni-Charm.......................................... 303,398
-------------
1,155,617
-------------
Gas Utility (0.2%):
154,000 Osaka Gas Co., Ltd. ............................... 443,945
173,000 Tokyo Gas Co., Ltd. ............................... 487,270
-------------
931,215
-------------
Health & Personal Care (0.2%):
33,000 Kyowa Hakko Kogyo Co. ............................. 323,445
30,000 Sankyo Co., Ltd. .................................. 679,102
-------------
1,002,547
-------------
Health Care (0.1%):
8,000 Hoya Corp. ........................................ 718,326
-------------
Industrial Goods & Services (0.7%):
56,000 Bridgestone Corp. ................................. 1,188,263
62,000 Denso Corp. ....................................... 1,511,889
30,000 NGK Insulators Ltd. ............................... 372,584
19,000 NGK Spark Plug Co., Ltd. .......................... 294,693
54,000 Sumitomo Electric Industries Ltd. ................. 927,888
-------------
4,295,317
-------------
Insurance (0.3%):
50,000 Mitsui Marine & Fire Insurance Co., Ltd. .......... 241,017
55,000 Sumitomo Marine & Fire Insurance Co. .............. 320,742
102,000 Tokio Marine & Fire Insurance Co. ................. 1,180,022
-------------
1,741,781
-------------
</TABLE>
Continued
63
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Japan (continued)
Internet Content (0.5%):
24,000 Softbank Corp. .................................... $ 3,266,494
-------------
Jewelry (0.0%):
23,000 Citizen Watch Co., Ltd. ........................... 222,606
-------------
Leasing (0.1%):
29,000 Yamato Transport Co., Ltd. ........................ 722,249
-------------
Machine-Diversified (0.0%):
10,000 Kurita Water Industries Ltd. ...................... 220,696
-------------
Machinery & Equipment (0.9%):
14,000 Brother Industries Ltd. ........................... 40,094
23,000 Daikin Industries Ltd. ............................ 535,862
21,000 Ebara Corp. ....................................... 285,223
71,000 Komatsu Ltd. ...................................... 500,617
116,000 Kubota Corp. ...................................... 422,111
34,000 Minebea Co., Ltd. ................................. 427,404
245,000 Mitsubishi Heavy Industries Ltd. .................. 1,088,359
4,000 Nidec Corp. ....................................... 347,821
40,000 NSK Ltd. .......................................... 351,602
13,000 Tokyo Electron Ltd. ............................... 1,784,095
-------------
5,783,188
-------------
Manufacturing-Capital Goods (0.5%):
31,000 Fujikura Ltd. ..................................... 206,566
8,000 Kokuyo Co. ........................................ 131,492
14,000 Makita Corp. ...................................... 133,779
16,000 Murata Manufacturing Co., Ltd. .................... 2,301,668
8,000 Noritake Co., Ltd. ................................ 44,687
7,000 Takara Standard Co. ............................... 30,567
-------------
2,848,759
-------------
Manufacturing-Consumer Goods (1.0%):
59,000 Canon, Inc. ....................................... 2,944,381
38,000 Fuji Photo Film Co., Ltd. ......................... 1,558,768
30,000 Konica Corp. ...................................... 255,195
27,000 Nikon Corp. ....................................... 1,002,916
8,700 Sega Enterprises Ltd. ............................. 134,034
12,000 Shimano Inc. ...................................... 289,221
-------------
6,184,515
-------------
Material Handling (0.0%):
3,000 Fuji Machine Mfg Co. .............................. 157,937
-------------
Medical Supplies (0.1%):
23,000 Olympus Optical Co., Ltd. ......................... 413,255
14,000 Terumo Corp. ...................................... 475,040
-------------
888,295
-------------
Merchandising (0.4%):
28,000 Ito-Yokado Co., Ltd. .............................. 1,688,445
24,000 JUSCO Co., Ltd. ................................... 455,948
28,000 Marui Co., Ltd. ................................... 537,232
-------------
2,681,625
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Japan (continued)
Metals (0.3%):
236,000 Kawasaki Steel Corp.*.............................. $ 339,050
80,000 Mitsubishi Materials Corp.*........................ 328,162
449,000 Nippon Steel Corp. ................................ 946,367
264,000 Sumitomo Metal Industries Ltd.*.................... 182,152
-------------
1,795,731
-------------
Metals & Mining (0.1%):
43,000 Mitsui Mining & Smelting Co. ...................... 327,169
41,000 Sumitomo Metal Mining Co.*......................... 193,759
-------------
520,928
-------------
Miscellaneous Materials & Commodities (0.2%):
86,000 Asahi Glass Co., Ltd. ............................. 963,219
-------------
Oil & Gas (0.1%):
91,800 Nippon Oil Co., Ltd. .............................. 421,684
-------------
Packaging (0.1%):
17,000 Toyo Seikan Kaisha Ltd. ........................... 318,143
-------------
Pharmaceuticals (0.7%):
18,000 Chugai Pharmaceutical Co., Ltd. ................... 341,110
20,000 Dai-Ichi Pharmaceuticals........................... 508,499
22,000 Eisai Co., Ltd. ................................... 706,984
29,000 Meiji Seika Co. ................................... 192,417
26,000 Shionogi & Co., Ltd. .............................. 495,173
22,000 Taisho Pharmaceutical Co. ......................... 790,159
23,000 Yamanouchi Pharmaceutical Co., Ltd. ............... 1,258,678
-------------
4,293,020
-------------
Printing & Publishing (0.2%):
50,000 Dai Nippon Printing Co., Ltd. ..................... 883,258
43,000 Toppan Printing Co., Ltd. ......................... 456,005
-------------
1,339,263
-------------
Railroads (0.1%):
100 Central Japan Railway Co. ......................... 567,100
-------------
Real Estate (0.3%):
85,000 Mitsubishi Estate Co., Ltd. ....................... 1,002,632
60,000 Mitsui Fudosan Co., Ltd. .......................... 652,165
-------------
1,654,797
-------------
Retail Stores (0.1%):
5,000 Aoyama Trading Co., Ltd. .......................... 72,305
34,000 Mitsukoshi Ltd.*................................... 151,038
5,000 Skylark Co., Ltd. ................................. 198,012
22,000 Takashimaya Co., Ltd. ............................. 205,441
-------------
626,796
-------------
Retail-General Merchandise (0.1%):
14,300 Credit Saison Co., Ltd. ........................... 332,491
-------------
Retail-Special Line (0.0%):
14,000 Uny Co., Ltd. ..................................... 193,854
-------------
</TABLE>
Continued
64
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Japan (continued)
Services (0.2%):
15,000 Secom Co., Ltd. ................................... $ 1,098,756
-------------
Software & Computer Services (0.4%):
235,000 Fuji Soft ABC, Inc. ............................... 1,790,239
8,000 Konami Corp., Ltd. ................................ 506,609
-------------
2,296,848
-------------
Storage (0.0%):
10,000 Mitsubishi Logistics Corp. ........................ 90,736
-------------
Telecommunications (1.9%):
11,000 Nippon Comsys Corp. ............................... 234,448
866 Nippon Telegraph & Telephone Corp. ................ 11,541,046
-------------
11,775,494
-------------
Textile Products (0.2%):
23,000 Kuraray Co., Ltd. ................................. 264,344
15,000 Onward Kashiyama Co., Ltd. ........................ 204,156
57,000 Teijin Ltd. ....................................... 278,531
102,000 Toray Industries, Inc. ............................ 414,550
14,000 Wacoal Corp. ...................................... 142,909
-------------
1,304,490
-------------
Tobacco (0.1%):
75 Japan Tobacco, Inc. ............................... 659,962
-------------
Toys (0.3%):
9,000 Nintendo Co., Ltd. ................................ 1,575,403
-------------
Transportation (0.6%):
271 East Japan Railway Co. ............................ 1,577,822
112,000 Japan Airlines Co. ................................ 426,610
101,000 Kinki Nippon Railway Co. .......................... 410,486
67,000 Nippon Express Co., Ltd. .......................... 412,253
64,000 Tobu Railway Co., Ltd. ............................ 183,287
82,000 Tokyu Corp. ....................................... 406,119
-------------
3,416,577
-------------
Transportation & Shipping (0.1%):
17,000 Kamigumi Co., Ltd. ................................ 89,819
89,000 Nippon Yusen Kabushiki Kaisha...................... 429,011
-------------
518,830
-------------
Wholesale & International Trade (0.5%):
93,000 Marubeni Corp. .................................... 320,837
114,000 Mitsubishi Corp. .................................. 1,033,312
104,000 Mitsui & Co., Ltd. ................................ 796,208
70,000 Sumitomo Corp. .................................... 789,308
-------------
2,939,665
-------------
Wire & Cable Products (0.2%):
47,000 Furukawa Electric Co., Ltd. ....................... 983,965
-------------
179,090,446
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Malaysia (0.0%):
Engineering (0.0%):
6,300 Silverstone Berhad*................................ $ --
-------------
Netherlands (4.6%):
Banking (0.4%):
91,835 ABN Amro Holding NV................................ 2,258,904
-------------
Beverages & Tobacco (0.2%):
18,537 Heineken NV........................................ 1,132,798
-------------
Computer Systems (0.2%):
24,000 ASM Lithography Holding NV......................... 1,035,737
-------------
Electronic Components/Instruments (0.6%):
85,520 Philips Electronics NV............................. 4,049,743
-------------
Finance (0.7%):
59,575 ING Groep NV....................................... 4,043,246
-------------
Food Products (0.3%):
33,770 Unilever NV -- CVA................................. 1,555,454
-------------
Insurance (0.4%):
64,170 Aegon NV........................................... 2,292,579
-------------
Oil & Gas (1.2%):
125,400 Royal Dutch Petroleum Co. ......................... 7,825,487
-------------
Retail-Special Line (0.2%):
31,195 Ahold.............................................. 921,916
-------------
Telecommunications (0.4%):
61,210 KPN NV............................................. 2,748,937
-------------
Transportation (0.0%):
10,000 TNT Post Group NV.................................. 270,802
-------------
28,135,603
-------------
New Zealand (0.1%):
Beverages & Tobacco (0.0%):
41,300 Lion Nathan Ltd. .................................. 92,350
-------------
Forest Products (0.0%):
130,281 Carter Holt Harvey Ltd. ........................... 113,461
-------------
Telecommunications (0.1%):
161,965 Telecom Corp. of New Zealand Ltd. ................. 568,032
-------------
773,843
-------------
Norway (0.3%):
Banking (0.1%):
48,900 Christiania Bank Og Kreditkasse.................... 263,738
37,000 Den Norske Bank ASA................................ 154,104
-------------
417,842
-------------
</TABLE>
Continued
65
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Norway (continued)
Chemicals (0.0%):
1,000 Dyno Industrier ASA................................ $ 21,293
-------------
Computer Software (0.0%):
8,000 Merkantildata ASA.................................. 41,275
-------------
Diversified (0.2%):
18,650 Norsk Hydro ASA.................................... 785,497
-------------
Electric Utility (0.0%):
15,650 Hafslund ASA, Series A............................. 72,323
10,326 Hafslund ASA, Series B............................. 33,705
-------------
106,028
-------------
Forest Products (0.0%):
3,200 Norske Skogindustrier ASA -- Class A............... 91,723
-------------
Industrial Goods & Services (0.0%):
1,200 Unitor ASA......................................... 8,845
-------------
Insurance (0.0%):
24,100 Storebrand ASA*.................................... 174,812
-------------
Manufacturing-Consumer Goods (0.0%):
14,800 Orkla ASA -- Class A............................... 282,236
-------------
Oil & Gas (0.0%):
9,700 Petroleum Geo-Services ASA*........................ 166,254
-------------
Transportation (0.0%):
2,200 Leif Hoegh & Co. ASA............................... 20,334
-------------
2,116,139
-------------
Portugal (0.4%):
Banking (0.1%):
66,500 Banco Commercial Portuguese........................ 347,416
7,900 Banco Espirito Santo............................... 194,623
-------------
542,039
-------------
Electrical & Electronic (0.2%):
41,000 Electricidade De Portugal.......................... 747,528
-------------
Food Products (0.0%):
6,300 Jeronimo Martins, SGPS, SA......................... 104,235
-------------
Telecommunications (0.1%):
65,000 Portugal Telecom SA................................ 732,746
-------------
Transportation (0.0%):
20,000 Brisa Auto-Estradas................................ 172,930
-------------
2,299,478
-------------
Singapore (1.0%):
Airlines (0.1%):
80,000 Singapore Airlines Ltd. ........................... 791,219
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Singapore (continued)
Banking (0.5%):
89,987 Development Bank of Singapore Ltd. ................ $ 1,155,428
68,959 Oversea-Chinese Banking Corp., Ltd. ............... 474,623
123,921 United Overseas Bank Ltd. ......................... 809,904
-------------
2,439,955
-------------
Computer Equipment (0.0%):
9,000 Creative Technology Ltd.* ......................... 217,065
-------------
Electronic Components/Instruments (0.1%):
75,000 Chartered Semiconductor Manufacturing Ltd. ........ 655,012
22,000 Venture Manufacturing Singapore Ltd. .............. 223,947
-------------
878,959
-------------
Finance (0.0%):
29,600 Haw Par Brothers International Ltd. ............... 47,936
-------------
Printing & Publishing (0.1%):
31,472 Singapore Press Holdings Ltd.* .................... 487,831
-------------
Real Estate (0.1%):
67,600 City Developments Ltd. ............................ 261,958
115,000 DBS Land Ltd. ..................................... 148,990
-------------
410,948
-------------
Telecommunications (0.1%):
519,000 Singapore Telecommunications Ltd. ................. 759,449
-------------
Transportation & Shipping (0.0%):
79,000 Keppel Corp. ...................................... 170,887
-------------
6,204,249
-------------
Spain (2.9%):
Agriculture (0.0%):
4,500 Azucarera Ebro Agricolas SA........................ 53,921
-------------
Banking (0.5%):
288,920 Banco Santander Central Hispanoamericano SA........ 3,060,361
-------------
Banking & Finance (0.5%):
196,423 Banco Bilbao Vizcaya............................... 2,946,724
2,460 Portland Valoerrivass.............................. 45,984
-------------
2,992,708
-------------
Beverages & Tobacco (0.1%):
1,650 El Aguila SA*...................................... 11,752
26,200 Tabacalera SA -- Class A........................... 404,101
-------------
415,853
-------------
Building Products (0.0%):
3,000 Uralita SA......................................... 18,117
-------------
Building-Heavy Construction (0.0%):
9,000 Fomento De Construc Y Contra....................... 170,821
-------------
</TABLE>
Continued
66
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Spain (continued)
Chemicals (0.0%):
700 Ercros SA......................................... $ 369
-------------
Commercial Services (0.0%):
4,100 Prosegur, CIA de Seguridad SA..................... 48,145
-------------
Construction (0.0%):
3,300 ACS, Actividades de Construccion y Servicios SA... 93,318
20,263 Autopista......................................... 8,741
-------------
102,059
-------------
Engineering (0.0%):
20,263 Autopistas Concesionaria Espanola SA.............. 176,952
11,700 Grupo Dragados SA................................. 84,228
-------------
261,180
-------------
Food Products (0.0%):
14,400 Telepizza SA*..................................... 81,441
2,564 Viscofan Industria Navarra de Envolturas
Celulosicassa SA.................................. 16,861
-------------
98,302
-------------
Gas & Electric Utility (0.6%):
70,580 Endesa SA......................................... 1,372,766
28,900 Gas Natural SGD, SA............................... 520,821
65,924 Iberdrola SA...................................... 853,120
22,666 Union Electrica Fenosa SA......................... 411,734
-------------
3,158,441
-------------
Hotels & Lodging (0.0%):
13,200 Sol Melia SA...................................... 148,045
-------------
Industrial Holding Company (0.0%):
5,850 Corporacion Financiara Alba SA.................... 154,774
-------------
Insurance (0.0%):
4,700 Corporacion Mapfre................................ 59,786
-------------
Machinery & Equipment (0.0%):
8,432 Zardoya Otis SA................................... 75,009
-------------
Metals (0.0%):
3,900 Acerinox SA....................................... 113,277
-------------
Oil & Gas (0.3%):
82,394 Repsol SA......................................... 1,646,776
-------------
Real Estate (0.0%):
4,268 Metrovacesa SA.................................... 72,007
8,683 Vallehermoso SA................................... 52,021
-------------
124,028
-------------
Telecommunications (0.9%):
229,261 Telefonica De Espana*............................. 4,944,764
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Spain (continued)
Water Utility (0.0%):
10,900 Aquas De Barcelona................................. $ 146,281
-------------
17,793,017
-------------
Sweden (3.0%):
Automotive (0.1%):
18,300 Volvo AB, Series B................................. 399,562
-------------
Banking (0.2%):
184,700 Nordic Baltic Holding AB........................... 1,400,403
-------------
Banking & Finance (0.3%):
31,500 ForeningsSparbanken AB............................. 463,303
43,100 Skandiaviska Enskilda Banken, Series A............. 513,521
39,000 Svenska Handelsbanken, Series A.................... 569,166
-------------
1,545,990
-------------
Computer Services (0.0%):
29,000 WM-Data AB, Series B............................... 160,363
-------------
Consumer Goods & Services (0.1%):
21,700 Securitas AB, Series B............................. 462,664
-------------
Forest Products (0.0%):
9,800 Svenska Cellusoa AB, Series B...................... 187,157
-------------
Health & Personal Care (0.0%):
196 TeleLarm Care AB*.................................. --
-------------
Insurance (0.3%):
62,000 Skandia Forsakrings AB............................. 1,647,070
-------------
Machinery & Equipment (0.0%):
8,300 Atlas Copco AB, Series A........................... 160,876
-------------
Manufacturing-Consumer Goods (0.1%):
21,800 Electrolux AB, Series B............................ 339,276
-------------
Retail-Special Line (0.2%):
50,500 Hennes & Mauritz AB, Series B...................... 1,059,434
-------------
Telecommunication Equipment (1.5%):
495,200 Telefonaktiebolaget Lm Ericsson AB................. 9,852,368
-------------
Telecommunications (0.1%):
7,300 Netcom AB, Series B*............................... 541,837
-------------
Tools (0.1%):
15,800 Sandvik AB......................................... 333,268
-------------
18,090,268
-------------
Switzerland (5.3%):
Banking (0.6%):
25,684 UBS AG............................................. 3,775,050
-------------
</TABLE>
Continued
67
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
Switzerland (continued)
Commercial Services (0.2%):
1,144 Adecco SA.......................................... $ 975,105
-------------
Electronic Components/Instruments (0.1%):
285 The Swatch Group AG, Bearer........................ 363,510
1,100 The Swatch Group AG, Registered.................... 287,842
-------------
651,352
-------------
Engineering (0.4%):
20,398 ABB Ltd.*.......................................... 2,449,293
-------------
Finance (0.5%):
14,820 Credit Suisse Group, Registered.................... 2,957,502
-------------
Food Products (0.8%):
2,465 Nestle SA, Registered.............................. 4,949,510
-------------
Insurance (0.5%):
927 Swiss Reinsurance Co., Registered.................. 1,895,542
2,500 Zurich Allied AG................................... 1,239,188
-------------
3,134,730
-------------
Pharmaceuticals (1.9%):
4,290 Novartis AG, Registered............................ 6,817,291
436 Roche Holding AG................................... 4,257,935
98 Roche Holding AG, Bearer........................... 1,039,928
-------------
12,115,154
-------------
Telecommunications (0.3%):
4,600 Swisscom AG, Registered............................ 1,598,337
-------------
32,606,033
-------------
United Kingdom (15.3%):
Aerospace & Military Technology (0.2%):
176,750 British Aerospace PLC.............................. 1,101,769
-------------
Banking (1.9%):
86,837 Abbey National PLC................................. 1,033,296
91,220 Barclays PLC....................................... 2,264,809
516,464 HSBC Holdings PLC.................................. 5,910,979
158,277 Royal Bank of Scotland Group PLC................... 2,640,566
-------------
11,849,650
-------------
Beverages & Tobacco (0.4%):
240,212 Diageo PLC......................................... 2,151,033
-------------
Broadcasting/Cable (0.4%):
114,000 British Sky Broadcasting Group PLC................. 2,221,166
-------------
Commercial Services (0.1%):
99,000 Hays PLC........................................... 548,172
-------------
Computer Services (0.1%):
17,000 Logica PLC......................................... 407,149
15,000 Misys PLC.......................................... 124,329
-------------
531,478
-------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
United Kingdom (continued)
Computer Systems (0.0%):
18,000 SEMA Group PLC..................................... $ 253,155
-------------
Distribution (0.4%):
212,800 BG PLC............................................. 1,372,394
244,000 Centrica PLC....................................... 808,968
-------------
2,181,362
-------------
Diversified (0.1%):
222,592 Invensys PLC....................................... 834,874
-------------
Electric Utility (0.3%):
86,300 National Grid Group PLC............................ 678,072
111,383 Scottish Power PLC................................. 941,759
-------------
1,619,831
-------------
Electronic Components/Instruments (0.1%):
35,000 ARM Holdings PLC................................... 373,290
-------------
Energy (2.1%):
1,384,846 BP Amoco PLC....................................... 13,291,939
-------------
Finance (0.7%):
136,310 Halifax PLC........................................ 1,301,099
334,306 Lloyds TSB Group PLC............................... 3,168,226
-------------
4,469,325
-------------
Food & Household Products (0.3%):
84,704 Cadbury Schweppes PLC.............................. 556,854
177,810 Unilever PLC....................................... 1,072,036
-------------
1,628,890
-------------
Health & Personal Care (1.9%):
220,685 Glaxo Wellcome PLC................................. 6,431,335
110,132 Zeneca Group PLC................................... 5,145,257
-------------
11,576,592
-------------
Insurance (1.0%):
96,141 Allied Zurich PLC.................................. 1,134,547
79,441 Commercial Union PLC............................... 1,324,127
289,828 Legal & General Group PLC.......................... 688,870
119,033 Prudential Corp., PLC.............................. 1,744,377
411,643 Tesco PLC.......................................... 1,279,091
-------------
6,171,012
-------------
Leisure (0.2%):
112,062 Granada Group PLC.................................. 1,102,730
-------------
Metals (0.2%):
63,700 Rio Tinto PLC, Registered.......................... 1,043,432
-------------
Pharmaceuticals (0.7%):
342,963 SmithKline Beecham PLC............................. 4,506,762
-------------
</TABLE>
Continued
68
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
COMMON STOCKS (continued)
United Kingdom (continued)
Printing & Publishing (0.5%):
37,573 Pearson PLC....................................... $ 1,180,298
97,327 Reuters Group PLC................................. 1,664,981
-------------
2,845,279
-------------
Software & Computer Services (0.1%):
68,000 Sage Group PLC.................................... 549,213
-------------
Telecom Equipment (0.4%):
180,203 Marconin PLC...................................... 2,342,070
-------------
Telecommunications (3.2%):
395,088 British Telecommunications PLC.................... 5,107,981
3,711,554 Vodafone Group PLC................................ 15,058,724
-------------
20,166,705
-------------
93,359,729
-------------
Total Common Stocks............................... 601,003,664
-------------
INVESTMENT COMPANY (1.3%):
France (0.1%):
27,000 MSCI France Index................................. 777,938
-------------
Germany (0.1%):
30,000 MSCI Germany Index................................ 727,500
-------------
Japan (0.2%):
83,000 MSCI Japan Index.................................. 1,260,563
-------------
United Kingdom (0.1%):
25,000 MSCI United Kingdom Index......................... 476,563
-------------
United States (0.8%):
4,551,763 Federated Prime Value Obligations Money Market
Fund.............................................. 4,551,762
-------------
Total Investment Company.......................... 7,794,326
-------------
WARRANTS (0.0%):
Germany (0.0%):
Insurance (0.0%):
209 Munchener Ruckversicherungs*...................... 17,530
-------------
Italy (0.0%):
Banking (0.0%):
8,395 Mediobanca*....................................... 11,307
-------------
Total Warrants.................................... 28,837
-------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (8.1%):
Bank Note (1.7%):
$3,037,630 First Union National Bank, 6.68%, 11/1/00**..... $ 3,035,960
3,014,400 Bank of America NA, 6.66%, 6/6/01............... 3,012,744
1,751,000 Keybank National Association, 6.67%, 6/27/01.... 1,750,040
503,000 Comerica Bank, 6.63%, 1/12/01**................. 501,731
1,509,000 SPNC Bank, 6.66%, 6/29/01....................... 1,500,403
-------------
9,800,878
-------------
Certificate of Deposit (0.2%):
1,458,120 Deutsche Bank AG Yankee, 6.67%, 6/29/01......... 1,457,320
-------------
Commercial Paper (1.8%):
Banking (0.2%):
1,499,417 Societe General North America, 7.00%, 7/3/00.... 1,499,417
-------------
Diversified Financial Services (0.3%):
2,000,000 General Electric Capital Corp., 6.59%, 8/14/00.. 1,983,848
-------------
Finance (0.5%):
1,500,000 Ford Motor Credit Corp., 6.63%, 7/14/00......... 1,496,225
1,498,813 UBS Finance, 7.13%, 7/5/00...................... 1,498,813
-------------
2,995,038
-------------
Medical-Drugs (0.2%):
1,498,288 Merck & Co. Inc., 6.86%, 7/7/00................. 1,498,288
-------------
Retail-Discount (0.3%):
2,000,000 Wal-Mart Stores Inc., 6.63%, 8/15/00............ 1,983,489
-------------
Utilities (0.3%):
2,000,000 Bell South Capital Funding, 6.61%, 8/15/00...... 1,983,489
-------------
11,943,569
-------------
Corporate Note (0.2%):
1,016,000 Toyota Motor Credit, 6.32%, 10/25/00**.......... 1,011,456
-------------
U.S. Government Agency Obligation
Fannie Mae (0.5%):
3,013,250 6.57%, 6/7/01 .................................. 3,011,626
-------------
Repurchase Agreements (3.7%):
5,242,984 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $6,752,492 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-
7/15/38, market value $5,315,399)............... 5,242,984
</TABLE>
Continued
69
<PAGE>
International Growth Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Repurchase Agreements (continued)
$ 5,000,943 Goldman Sachs & Co., 6.79%, 7/3/00
(Collateralized by $18,533,233 various Government
Agency Securities, 4.50%-14.00%, 8/15/00-6/20/30,
market value $5,070,181)......................... $ 5,000,943
11,402,122 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $18,963,524 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $11,591,155) ....................... 11,402,122
600,114 Salomon Smith Barney, 6.85%, 7/3/00
(Collateralized by $973,079 various Government
Agency Securities, 4.50%-9.00%, 9/15/00-6/15/30,
market value $608,485) .......................... 600,114
-------------
22,246,163
-------------
Total Short-Term Securities Purchased With
Securities Lending Collateral.................... 49,471,012
-------------
Total Investments (Cost $486,473,977) (a) -- 107.6%........... 658,297,839
Other assets in excess of liabilities -- (7.6)%............... (46,609,485)
-------------
Total Net Assets -- 100.0%.................................... $ 611,688,354
=============
</TABLE>
-------
Percentages indicated are based on net assets of $611,688,354.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $209,269,135
Unrealized depreciation......................................... (37,445,273)
------------
Net unrealized appreciation..................................... $171,823,862
============
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
(c) Security has been deposited as initial margin on open futures contracts.
* Non-income producing security.
** Variable rate security. Rate present represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
See Notes to Financial Statements.
70
<PAGE>
Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
CORPORATE NOTES & BONDS (41.5%):
Banking (14.3%):
$ 2,700,000 Bank of Montreal-Chicago, 7.80%, 4/1/07............ $ 2,737,125
2,000,000 Bank of New York, 8.50%, 12/15/04.................. 2,072,500
2,000,000 BankAmerica Corp., 7.20%, 4/15/06.................. 1,957,500
2,000,000 Chase Manhattan Corp., 7.13%, 3/1/05............... 1,967,500
5,000,000 First Union Corp., 8.13%, 6/24/02.................. 5,043,750
5,000,000 First Union National Bank, 7.88%,.................. 4,912,500
2,000,000 Fleet/Norstar Group, 8.63%, 1/15/07................ 2,080,000
2,000,000 Midland Bank PLC, 7.63%, 6/15/06................... 1,990,000
3,000,000 National City Bank of Cleveland, 7.25%, 7/15/10.... 2,838,750
5,000,000 NCNB Corp., 10.20%, 7/15/15........................ 5,906,249
5,000,000 Northern Trust Corp., 7.10%, 8/1/09................ 4,793,750
5,000,000 PNC Bank N.A., 7.88%, 4/15/05...................... 5,081,250
2,000,000 Republic New York Corp., 7.00%, 3/22/11............ 1,855,000
2,000,000 Swiss Bank Corp. -- New York, 7.38%, 7/15/15....... 1,907,500
------------
45,143,374
------------
Beverages & Tobacco (1.4%):
4,390,000 Seagram Co. Ltd., 8.35%, 1/15/22................... 4,368,050
------------
Brokers (2.3%):
5,000,000 Lehman Brothers Holdings, Inc., 8.75%,3/15/05...... 5,137,500
2,000,000 Salomon, Inc., 6.75%, 2/15/03...................... 1,967,500
------------
7,105,000
------------
Finance (11.2%):
5,000,000 Associates Corp. NA, 7.95%, 2/15/10................ 4,943,750
3,500,000 British Gas Finance, 6.63%, 6/1/18................. 3,136,875
2,000,000 Discover Credit, 9.26%, 3/20/12.................... 2,225,000
5,000,000 Ford Motor Credit Corp., 9.03%, 12/30/09, Callable
12/30/04 @ 100..................................... 5,193,750
5,000,000 Ford Motor Credit Corp., 7.875%, 6/15/10........... 4,993,050
5,000,000 General Motors Acceptance Corp., 6.85%, 6/17/04.... 4,887,500
3,500,000 Great Western Financial Trust II, 8.21%, 2/1/27,
Callable 2/1/07 @ 104.............................. 3,075,625
3,000,000 Household Finance Corp., 6.50%, 11/15/08........... 2,722,500
4,000,000 St. Paul Cos., Inc., 7.25%, 8/9/07................. 3,880,000
------------
35,058,050
------------
Gas Transmission (0.8%):
2,500,000 Enserch Corp., 7.13%, 6/15/05...................... 2,453,125
------------
Industrial Goods & Services (2.5%):
5,000,000 Cyprus Amax, 7.38%, 5/15/07........................ 4,793,750
3,000,000 Engelhard Corp., 7.38%, 8/1/06..................... 2,943,750
------------
7,737,500
------------
Insurance (0.6%):
2,000,000 Travelers Capital III, 7.63%, 12/1/36.............. 1,847,500
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
CORPORATE NOTES & BONDS (continued)
Machinery & Equipment (0.6%):
$ 2,000,000 Case Corp., 7.25%, 1/15/16......................... $ 1,795,000
------------
Multimedia (1.7%):
5,000,000 Time Warner, Inc., 9.13%, 1/15/13.................. 5,425,000
------------
Oil & Gas (1.5%):
5,000,000 Conoco, Inc., 6.95%, 4/15/29....................... 4,556,250
------------
Paper & Related Products (1.2%):
4,000,000 Westvaco Corp., 7.10%, 11/15/09.................... 3,745,000
------------
Retail (1.4%):
4,484,500 Fred Meyer, Inc., Lease Trust, 8.50%, 7/15/17...... 4,406,022
------------
Telecommunications (1.4%):
5,000,000 US West Capital Funding, Inc., 6.88%, 7/15/28...... 4,300,000
------------
Utilities (0.6%):
2,000,000 Pacific Gas & Electric, 6.25%, 3/1/04.............. 1,925,000
------------
Total Corporate Notes & Bonds...................... 129,864,871
------------
MUNICIPAL BOND -- TAXABLE (0.6%):
California (0.6%):
2,000,000 San Bernardino County, Financing Authority Pension
Obligation Revenue, 6.99%, 8/1/10 (Insured by
MBIA).............................................. 1,917,500
------------
Total Municipal Bond -- Taxable.................... 1,917,500
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (26.0%):
Fannie Mae (17.3%):
5,000,000 5.63%, 5/14/04..................................... 4,761,550
10,000,000 7.40%, 7/1/04...................................... 10,120,201
2,956,381 6.05%, 12/1/08..................................... 2,824,615
5,000,000 6.38%, 6/15/09..................................... 4,738,300
10,400,000 6.63%, 9/15/09..................................... 10,036,000
8,000,000 7.25%, 1/15/10..................................... 8,065,280
3,500,000 6.25%, 11/18/23.................................... 3,293,850
18,609 7.50%, 9/1/28...................................... 18,395
888,439 7.50%, 3/1/29...................................... 876,845
141,250 7.50%, 6/1/29...................................... 139,277
45,323 7.50%, 6/1/29...................................... 44,780
356,278 7.50%, 7/1/29...................................... 351,831
34,068 7.50%, 8/1/29...................................... 33,583
273,846 7.50%, 8/1/29...................................... 270,185
392,915 7.50%, 8/1/29...................................... 387,403
320,534 7.50%, 8/1/29...................................... 315,928
995,888 7.50%, 9/1/29...................................... 981,318
449,772 7.50%, 9/1/29...................................... 443,592
992,070 7.50%, 9/1/29...................................... 977,576
1,101,865 7.50%, 9/1/29...................................... 1,085,822
495,746 7.50%, 9/1/29...................................... 488,503
574,086 7.50%, 9/1/29...................................... 565,704
627,693 7.50%, 10/1/29..................................... 618,761
1,054,499 7.50%, 10/1/29..................................... 1,039,008
878,658 7.50%, 11/1/29..................................... 865,865
</TABLE>
Continued
71
<PAGE>
Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
Fannie Mae (continued)
$ 465,456 7.50%, 11/1/29..................................... $ 458,642
585,557 7.50%, 1/1/30...................................... 576,996
------------
54,379,810
------------
Freddie Mac (6.2%):
5,000,000 7.38%, 5/15/03..................................... 5,050,000
2,500,000 7.22%, 6/14/06..................................... 2,519,025
6,352,452 6.00%, 4/1/29...................................... 5,844,573
5,215,120 7.00%, 9/1/29...................................... 5,043,594
981,594 7.00%, 11/1/29..................................... 949,182
------------
19,406,374
------------
U.S. Treasury Bonds (2.5%):
7,600,000 6.13%, 8/15/29..................................... 7,682,612
------------
Total U.S. Government Agency Obligations........... 81,468,796
------------
U.S. GOVERNMENT OBLIGATIONS (19.8%):
U.S. Treasury Bonds (15.0%):
18,000,000 7.50%, 11/15/16.................................... 20,272,500
19,000,000 8.00%, 11/15/21.................................... 22,930,530
3,500,000 6.25%, 5/15/30..................................... 3,673,880
------------
46,876,910
------------
U.S. Treasury Notes (4.8%):
14,500,000 7.00%, 7/15/06..................................... 15,020,985
------------
Total U.S. Government Obligations.................. 61,897,895
------------
U.S. TREASURY INFLATION PROTECTION BONDS (3.4%):
10,689,400 Treasury Inflation Protection, 3.63%, 7/15/02...... 10,619,171
------------
Total U.S. Treasury Inflation Protection Bonds..... 10,619,171
------------
INVESTMENT COMPANIES (7.1%):
780,553 Dreyfus Cash Management Money Market Fund.......... 780,553
21,523,916 Federated Prime Value Obligations Money Market
Fund............................................... 21,523,916
------------
Total Investment Companies......................... 22,304,469
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (13.9%):
Bank Note (1.3%):
$ 759,400 First Union National Bank, 6.68%, 11/1/00**......... $ 758,990
502,400 Bank of America NA, 6.66%, 6/6/01................... 502,124
1,500,860 Keybank National Association, 6.67%, 6/27/01........ 1,500,034
503,000 Comerica Bank, 6.63%, 1/12/01**..................... 501,731
755,000 SPNC Bank, 6.66%, 6/29/01........................... 750,202
------------
4,013,081
------------
Certificate of Deposit (0.2%):
729,060 Deutsche Bank AG Yankee,
6.67%, 6/29/01...................................... 728,660
------------
Commercial Paper (2.6%):
Banking (0.5%):
1,499,417 Societe General North America,
7.00%, 7/3/00....................................... 1,499,417
------------
Diversified Financial Services (0.2%):
750,000 General Electric Capital Corp.,
6.59%, 8/14/00...................................... 743,943
------------
Finance (1.0%):
1,500,000 Ford Motor Credit Corp., 6.63%, 7/14/00............. 1,496,225
1,498,813 UBS Finance, 7.13%, 7/5/00.......................... 1,498,813
------------
2,995,038
------------
Medical -- Drugs (0.5%):
1,498,288 Merck & Co. Inc., 6.86%, 7/7/00..................... 1,498,288
------------
Retail -- Discount (0.2%):
750,000 Wal-Mart Stores Inc., 6.63%, 8/15/00................ 743,808
------------
Utilities (0.2%):
750,000 Bell South Capital Funding,
6.61%, 8/15/00...................................... 743,808
------------
8,224,302
------------
U.S. Government Agency Obligation
Fannie Mae (0.2%):
753,310 6.57%, 6/7/01....................................... 752,907
------------
</TABLE>
Continued
72
<PAGE>
Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued):
Repurchase Agreements (9.6%):
$7,501,408 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $9,661,323 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-7/15/38,
market value $7,605,016).......................... $ 7,501,408
7,185,355 Goldman Sachs & Co., 6.79%, 7/3/00 (Collateralized
by $26,628,549 various Government Agency
Securities,
4.50%-14.00%, 8/15/00-6/20/30, market value
$7,284,836)....................................... 7,185,355
7,501,396 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $12,476,003 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $7,625,760).......................... 7,501,396
7,501,427 Salomon Smith Barney, 6.85%, 7/3/00
(Collateralized by $12,163,493 various Government
Agency Securities,
4.50%-9.00%, 9/15/00-6/15/30, market value
$7,606,066)....................................... 7,501,427
------------
29,689,586
------------
Total Short-Term Securities Purchased With
Securities Lending Collateral..................... 43,408,536
------------
Total Investments (Cost $358,367,775) (a) -- 112.3%............ 351,481,238
Other assets in excess of liabilities -- (12.3)%............... (38,431,784)
------------
Total Net Assets -- 100.0%..................................... $313,049,454
============
</TABLE>
-------
Percentages indicated are based on net assets of $313,049,454.
(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........................................ $ 1,130,764
Unrealized depreciation........................................ (8,017,301)
-----------
Net unrealized depreciation.................................... $(6,886,537)
===========
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
** Variable rate security. Rate present represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
MBIA -- Municipal Bond Insurance Association
PLC -- Public Limited Company (British)
See Notes to Financial Statements.
73
<PAGE>
Intermediate Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (1.9%):
Banking (1.9%):
$ 5,000,000 MBNA Master Credit Card Trust, 6.76%**, 8/15/05... $ 5,003,800
10,000,000 Mellon Residential Funding Corp., 6.92%, 3/25/30.. 9,745,777
-------------
Total Asset Backed Securities..................... 14,749,577
-------------
COMMERCIAL PAPER (2.6%):
Finance (2.6%):
20,000,000 General Electric Capital Corp., 6.70%, 7/17/00.... 19,948,400
-------------
Total Commercial Paper............................ 19,948,400
-------------
CORPORATE NOTES & BONDS (39.4%):
Auto/Truck -- Original Equipment (1.0%):
8,000,000 TRW, Inc., 6.05%, 1/15/05......................... 7,410,000
-------------
Banking (11.9%):
5,000,000 ABN-Amro Bank NV (Chicago), 7.25%, 5/31/05........ 4,950,000
5,000,000 Bank of America Corp., 7.80%, 2/15/10............. 4,975,000
6,000,000 Bank of Montreal-Chicago, 7.80%, 4/1/07........... 6,082,500
10,000,000 BB&T Corp., 7.25%, 6/15/07........................ 9,450,000
10,000,000 Chase Manhattan Corp., 6.75%, 9/15/06............. 9,575,000
4,000,000 Chase Manhattan Corp., 7.88%, 6/15/10............. 3,995,000
10,000,000 First Union National Bank, 7.88%,................. 9,824,999
5,000,000 J.P. Morgan & Co., 7.63%, 9/15/04................. 5,012,500
5,270,000 Keycorp, 6.75%, 3/15/06........................... 5,013,088
5,000,000 MBNA American Bank NA, 7.25%, 9/15/02............. 4,912,500
5,000,000 National City Bank, 6.25%, 3/15/11................ 4,343,750
5,000,000 NCNB Corp., 9.38%, 9/15/09........................ 5,437,500
5,000,000 Northern Trust Corp., 7.10%, 8/1/09............... 4,793,750
8,000,000 PNC Funding Corp., 6.13%, 2/15/09................. 7,070,000
8,000,000 PNC Funding Corp., 7.50%, 11/1/09................. 7,720,000
-------------
93,155,587
-------------
Brokers (2.0%):
8,500,000 Donaldson Lufkin Jenrette, 5.88%, 4/1/02.......... 8,266,250
3,000,000 Goldman Sachs Group, 6.65%, 5/15/09............... 2,748,750
5,000,000 Salomon Smith Barney, 7.13%, 10/1/06.............. 4,812,500
-------------
15,827,500
-------------
Electronic Components/Instruments (1.3%):
10,000,000 Tandy Corp., 6.15%, 1/15/02....................... 9,787,500
-------------
Finance (11.5%):
5,000,000 Associates Corp., N.A., 6.52%, 10/11/02........... 4,900,000
5,000,000 Citigroup Capital II, 7.75%, 12/1/36.............. 4,531,250
5,000,000 Citigroup, Inc., 7.45%, 6/6/02.................... 5,000,000
5,000,000 Fleet Financial Group, 7.38%, 12/1/09............. 4,818,750
10,000,000 Ford Capital Guaranteed Notes, 9.88%, 5/15/02..... 10,425,000
8,000,000 Ford Motor Credit Corp., 5.80%, 1/12/09........... 6,960,000
8,400,000 Ford Motor Credit Corp., 9.03%, 12/30/09, Callable
12/30/04 @ 100.................................... 8,725,500
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
CORPORATE NOTES & BONDS (continued)
Finance (continued)
$ 5,000,000 General Electric Capital Corp., Series A, 6.33%,
9/17/01........................................... $ 4,950,000
10,000,000 General Motors Acceptance Corp., 5.35%, 12/7/01... 9,737,500
5,000,000 General Motors Acceptance Corp., 7.13%, 5/1/03.... 4,962,500
5,000,000 General Motors Acceptance Corp., 7.75%, 1/19/10... 4,962,500
5,000,000 Household Finance Corp., 8.00%, 8/1/04............ 5,043,750
5,000,000 Household Finance Corp., 6.50%, 11/15/08.......... 4,537,500
5,000,000 Norwest Corp., 6.50%, 6/1/05...................... 4,831,250
6,000,000 Norwest Finance, Inc., 5.38%, 9/30/03............. 5,655,000
-------------
90,040,500
-------------
Food -- Diversified (0.6%):
5,000,000 Conagra Inc., 5.50%, 10/15/02..................... 4,793,750
-------------
Industrial Goods & Services (1.9%):
5,500,000 Boston Scientific, 6.63%, 3/15/05................. 5,183,750
5,000,000 General Motors, 6.25%, 5/1/05..................... 4,768,750
5,000,000 Tyco International Group SA, 6.13%, 6/15/01(b).... 4,937,500
-------------
14,890,000
-------------
Insurance (1.3%):
5,000,000 St. Paul Companies, Inc., 7.19%, 8/2/07........... 4,837,500
5,100,000 Travelers Group, Inc., 6.88%, 12/15/03............ 5,004,375
-------------
9,841,875
-------------
Machinery & Equipment (0.7%):
6,000,000 Case Corp., 7.25%, 1/15/16........................ 5,385,000
-------------
Multimedia (1.7%):
10,000,000 J Seagram & Sons, 6.80%, 12/15/08................. 9,375,000
3,500,000 Time Warner, Inc., 9.13%, 1/15/13................. 3,797,500
-------------
13,172,500
-------------
Oil & Gas (0.6%):
5,000,000 Conoco, Inc., 6.95%, 4/15/29...................... 4,556,250
-------------
Rental Auto/Equipment (0.6%):
5,000,000 Hertz Corp., 6.25%, 3/15/09....................... 4,475,000
-------------
Retail -- Discount (0.7%):
5,875,000 Wal-Mart Stores, Inc., 6.88%, 8/10/09............. 5,757,500
-------------
Technology (1.3%):
10,000,000 MCI Worldcom, Inc., 7.55%, 4/1/04................. 9,987,500
-------------
Telecommunications (1.4%):
6,000,000 Bell Canada, 7.75%, 4/1/06........................ 6,075,000
5,000,000 Sprint Capital Corp., 6.13%, 11/15/08............. 4,456,250
-------------
10,531,250
-------------
</TABLE>
Continued
74
<PAGE>
Intermediate Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
CORPORATE NOTES & BONDS (continued)
Transportation -- Railroad (0.9%):
$ 7,000,000 Union Pacific Co., 6.34%, 11/25/03................. $ 6,702,500
-------------
Total Corporate Notes & Bonds...................... 306,314,212
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (27.7%):
Fannie Mae (20.5%):
10,000,000 5.13%, 2/13/04..................................... 9,394,900
10,000,000 5.63%, 5/14/04..................................... 9,523,100
15,000,000 6.50%, 8/15/04..................................... 14,709,000
25,000,000 5.75%, 6/15/05..................................... 23,689,500
20,000,000 7.13%, 3/15/07..................................... 20,058,400
9,100,000 6.38%, 6/15/09..................................... 8,623,706
9,100,000 6.00%, 11/15/22.................................... 8,639,176
12,000,000 6.25%, 11/18/23.................................... 11,293,200
1,136,341 7.50%, 8/1/29...................................... 1,120,023
1,122,253 7.50%, 9/1/29...................................... 1,106,283
1,128,358 7.50%, 9/1/29...................................... 1,112,166
1,136,160 7.50%, 10/1/29..................................... 1,119,572
1,168,971 7.50%, 11/1/29..................................... 1,152,033
6,339,670 7.50%, 12/1/29..................................... 6,248,125
1,153,283 7.50%, 1/1/30...................................... 1,136,549
2,082,018 7.50%, 1/1/30...................................... 2,051,787
1,140,792 7.50%, 1/1/30...................................... 1,124,490
244,575 7.50%, 1/1/30...................................... 241,000
4,917,476 7.50%, 1/1/30...................................... 4,846,025
6,287,653 7.50%, 1/1/30...................................... 6,196,168
5,379,161 7.50%, 2/1/30...................................... 5,300,303
20,000,000 7.50%, 2/1/30...................................... 19,693,600
1,107,919 7.50%, 2/1/30...................................... 1,092,275
-------------
159,471,381
-------------
Federal Farm Credit Bank (1.3%):
10,000,000 6.30%, 9/23/04..................................... 9,726,900
-------------
Federal Home Loan Bank (0.6%):
5,000,000 6.49%, 1/8/04...................................... 4,914,950
-------------
Freddie Mac (5.3%):
10,000,000 5.75%, 7/15/03..................................... 9,659,600
10,410,000 8.12%, 1/31/05..................................... 10,843,161
3,000,000 7.22%, 6/14/06..................................... 3,022,830
9,832,094 6.00%, 3/1/29...................................... 9,008,656
9,574,981 6.00%, 3/1/29...................................... 8,825,451
-------------
41,359,698
-------------
Total U.S. Government Agency Obligations........... 215,472,929
-------------
U.S. GOVERNMENT OBLIGATIONS (21.7%):
U.S. Treasury Bonds (8.8%):
54,500,000 9.13%, 5/15/09..................................... 59,302,540
8,000,000 7.50%, 11/15/16.................................... 9,010,000
-------------
68,312,540
-------------
U.S. Treasury Notes (12.9%):
36,000,000 6.50%, 5/31/01..................................... 36,011,160
13,300,000 6.25%, 10/31/01.................................... 13,254,248
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (continued)
U.S. Treasury Notes (continued)
$17,000,000 6.50%, 3/31/02.................................. $ 17,005,270
2,000,000 6.25%, 2/15/03.................................. 1,994,360
9,000,000 5.88%, 11/15/04................................. 8,859,510
10,350,000 7.50%, 2/15/05.................................. 10,854,563
12,000,000 6.50%, 2/15/10.................................. 12,389,640
-------------
100,368,751
-------------
Total U.S. Government Obligations............... 168,681,291
-------------
U.S. TREASURY INFLATION PROTECTION BONDS (2.7%):
21,378,800 Treasury Inflation Protection, 3.63%, 7/15/02... 21,238,341
-------------
Total U.S. Treasury Inflation Protection Bonds.. 21,238,341
-------------
YANKEE CERTIFICATES OF DEPOSIT (1.2%):
10,000,000 Potash Corp. Saskatchewan, 7.13%, 6/15/07....... 9,512,500
-------------
Total Yankee Certificates of Deposit............ 9,512,500
-------------
INVESTMENT COMPANIES (4.1%):
820,388 Dreyfus Cash Management Money Market Fund....... 820,388
30,965,749 Federated Prime Value Obligations Money Market
Fund............................................ 30,965,749
-------------
Total Investment Companies...................... 31,786,137
-------------
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (13.3%):
Bank Note (2.5%):
$ 5,062,710 First Union National Bank, 6.68%, 11/1/00*...... 5,059,933
3,516,790 Bank of America NA, 6.66%, 6/6/01............... 3,514,868
4,752,710 Keybank National Association, 6.67%, 6/27/01.... 4,750,107
3,017,000 Comerica Bank, 6.63%, 1/12/01*.................. 3,010,387
3,521,000 SPNC Bank, 6.66%, 6/29/01....................... 3,500,941
-------------
19,836,236
-------------
Certificate of Deposit (0.4%):
3,402,280 Deutsche Bank AG Yankee, 6.67%, 6/29/01......... 3,400,412
-------------
Commercial Paper (3.8%):
Banking (0.6%):
4,498,250 Societe General North America, 7.00%, 7/3/00.... 4,498,250
-------------
Diversified Financial Services (0.4%):
3,000,000 General Electric Capital Corp., 6.59%, 8/14/00.. 2,975,772
-------------
</TABLE>
Continued
75
<PAGE>
Intermediate Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Commercial Paper (continued)
Finance (1.2%):
4,500,000 Ford Motor Credit Corp., 6.63%, 7/14/00.......... 4,488,676
4,496,440 UBS Finance, 7.13%, 7/5/00....................... 4,496,440
-------------
8,985,116
-------------
Medical -- Drugs (0.6%):
$ 4,494,863 Merck & Co. Inc., 6.86%, 7/7/00.................. $ 4,494,863
-------------
Retail -- Discount (0.5%):
4,000,000 Wal-Mart Stores Inc., 6.63%, 8/15/00............. 3,966,977
-------------
Utilities (0.5%):
4,000,000 Bell South Capital Funding, 6.61%, 8/15/00....... 3,966,977
-------------
28,887,955
-------------
Corporate Note (0.3%):
2,540,000 Toyota Motor Credit, 6.32%, 10/25/00*............ 2,528,639
-------------
U.S. Government Agency Obligation
Fannie Mae (0.5%):
4,017,670 6.57%, 6/7/01.................................... 4,015,501
-------------
Repurchase Agreements (5.8%):
10,001,878 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $12,881,634 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-7/15/38,
market value $10,140,022)........................ 10,001,878
10,001,886 Goldman Sachs & Co., 6.79%, 7/3/00
(Collateralized by $37,066,466 various Government
Agency Securities, 4.50%-14.00%, 8/15/00-6/20/30,
market value $10,140,363)........................ 10,001,886
12,002,233 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $19,961,604 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $12,201,216)........................ 12,002,233
12,507,379 Salomon Smith Barney, 6.85%, 7/3/00
(Collateralized by $20,280,598 various Government
Agency Securities, 4.50%-9.00%, 9/15/00-6/15/30,
market value $12,681,847)........................ 12,507,379
-------------
44,513,376
-------------
Total Short-Term Securities Purchased With
Securities Lending Collateral.................... 103,182,119
-------------
Total Investments (Cost $910,667,391) (a) -- 114.5%........... 890,885,506
Liabilities in excess of other assets -- (14.5)%.............. (112,942,230)
-------------
Total Net Assets -- 100.0%.................................... $ 777,943,276
=============
</TABLE>
-------
Percentages indicated are based on net assets of $777,943,276.
(a) Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 2,216,762
Unrealized depreciation (21,998,647)
------------
Net unrealized depreciation $(19,781,885)
============
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
This security has been deemed liquid by the Board of Trustees.
* Variable rate security. Rate present represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
** Effective yield at purchase.
NV -- Naamloze Vennootschap (Dutch Corporation)
PLC -- Public Limited Company (British)
SA -- Sociedad Anonima (Spanish Corporation)
See Notes to Financial Statements.
76
<PAGE>
Short Term Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
ASSET BACKED SECURITIES (8.5%):
Finance (5.2%):
$ 3,000,000 Daimler Chrysler Auto Trust, 7.23%, 1/6/05......... $ 3,009,060
5,000,000 Ford Motor Credit Corp., 7.50%, 1/15/03............ 4,993,750
------------
8,002,810
------------
Financial -- Consumer Loans (3.3%):
5,000,000 Chase Manhattan Credit Card Master Trust, 7.04%,
2/15/05............................................ 4,991,400
------------
Total Asset Backed Securities...................... 12,994,210
------------
CORPORATE NOTES & BONDS (65.1%):
Aerospace (3.9%):
6,000,000 Boeing Capital Corp., 6.83%, 5/21/01............... 5,970,000
------------
Asset Backed Security (1.4%):
2,210,936 Premier Auto Trust, 5.28%, 11/8/01................. 2,204,259
------------
Banking (11.9%):
5,000,000 ABN Amro Bank, 6.63%, 10/31/01..................... 4,955,065
3,000,000 Bear Stearns Co., 6.45%, 8/1/02.................... 2,932,500
4,000,000 First of America, 8.50%, 2/1/04.................... 4,080,000
3,000,000 Household Bank FSB, 6.50%, 7/15/03................. 2,883,750
3,500,000 Marshall & Ilsley Corp., 6.38%, 7/15/03............ 3,399,375
------------
18,250,690
------------
Brokers (7.1%):
5,000,000 Merrill Lynch & Co., Inc., 6.64%, 9/19/02.......... 4,937,500
6,000,000 Morgan Stanley Dean Witter, 7.00%, 1/28/02......... 5,977,500
------------
10,915,000
------------
Cable Television (3.4%):
5,000,000 Tele-Commun, Inc., 8.25%, 1/15/03.................. 5,131,250
------------
Electronic Computers (2.0%):
3,000,000 Hewlett-Packard Co., 7.15%, 6/15/05................ 3,011,250
------------
Finance (28.1%):
5,000,000 Aristar, Inc., 6.00%, 8/1/01....................... 4,931,250
5,000,000 Associates Corp., 5.50%, 2/15/02................... 4,856,250
2,500,000 CIT Group, Inc., 5.92%, 1/15/03.................... 2,396,875
5,000,000 Citigroup, Inc., 7.45%, 6/6/02..................... 5,000,000
5,000,000 General Electric Capital Corp., Series A, 6.33%,
9/17/01............................................ 4,950,000
3,000,000 General Motors Acceptance Corp., 7.48%, 2/28/03.... 3,000,000
4,000,000 Household Netherlands BV, 6.20%, 12/1/03........... 3,850,000
5,000,000 MCN Investment Corp., 6.89%, 1/16/02............... 4,893,750
5,000,000 Norwest Financial, Inc., 7.88%, 2/15/02............ 5,037,500
1,500,000 Transamerica Financial Corp., 6.13%, 11/1/01....... 1,475,625
2,500,000 Transamerica Financial Corp., 7.25%, 8/15/02....... 2,493,750
------------
42,885,000
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
CORPORATE NOTES & BONDS (continued)
Industrial Goods & Services (4.1%):
$ 4,375,000 Enron Corp., 6.45%, 11/15/01....................... $ 4,325,781
2,000,000 Monsanto Co., 5.38%, 12/1/01 (b)................... 1,960,000
------------
6,285,781
------------
Pharmaceuticals (3.2%):
5,000,000 Abbott Laboratories, 5.60%, 10/1/03................ 4,850,000
------------
Total Corporate Notes & Bonds...................... 99,503,230
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (21.8%):
Fannie Mae (6.4%):
10,000,000 6.25%, 11/15/02.................................... 9,850,000
------------
Freddie Mac (7.1%):
6,000,000 7.38%, 5/15/03..................................... 6,060,000
5,000,000 5.75%, 7/15/03..................................... 4,829,800
------------
10,889,800
------------
U.S. Treasury Notes (8.3%):
10,000,000 7.50%, 11/15/01.................................... 10,128,100
1,000,000 6.25%, 2/28/02..................................... 996,780
1,400,000 7.25%, 5/15/04..................................... 1,443,302
------------
12,568,182
------------
Total U.S. Government Agency Obligations........... 33,307,982
------------
INVESTMENT COMPANIES (2.9%):
946,064 Dreyfus Cash Management Money Market Fund.......... 946,064
3,439,909 Federated Prime Value Obligations Money Market
Fund............................................... 3,439,909
------------
Total Investment Companies......................... 4,385,973
------------
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL (21.1%):
Bank Note (2.2%):
$ 759,400 First Union National Bank, 6.68%, 11/1/00**........ 758,990
753,600 Bank of America NA, 6.66%, 6/6/01.................. 753,186
750,430 Keybank National Association, 6.67%, 6/27/01....... 750,017
503,000 Comerica Bank, 6.63%, 1/12/01**.................... 501,731
503,000 SPNC Bank, 6.66%, 6/29/01.......................... 500,134
------------
3,264,058
------------
Certificate of Deposit (0.3%):
486,040 Deutsche Bank AG Yankee, 6.67%, 6/29/01............ 485,773
------------
Commercial Paper (4.5%):
Banking (0.7%):
999,611 Societe General North America, 7.00%, 7/3/00....... 999,611
------------
</TABLE>
Continued
77
<PAGE>
Short Term Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
SHORT-TERM SECURITIES PURCHASED WITH SECURITIES LENDING COLLATERAL
(continued)
Commercial Paper (continued)
Diversified Financial Services (0.6%):
$ 1,000,000 General Electric Capital Corp., 6.59%, 8/14/00.... $ 991,924
------------
Finance (1.3%):
1,000,000 Ford Motor Credit Corp., 6.63%, 7/14/00........... 997,484
999,209 UBS Finance, 7.13%, 7/5/00........................ 999,209
------------
1,996,693
------------
Medical -- Drugs (0.7%):
998,858 Merck & Co. Inc., 6.86%, 7/7/00................... 998,858
------------
Retail -- Discount (0.6%):
1,000,000 Wal-Mart Stores Inc., 6.63%, 8/15/00.............. 991,744
------------
Utilities (0.6%):
1,000,000 Bell South Capital Funding, 6.61%, 8/15/00........ 991,744
------------
6,970,574
------------
U.S. Government Agency Obligation
Fannie Mae (0.5%):
753,310 6.57%, 6/7/01..................................... 752,907
------------
Repurchase Agreements (13.6%):
5,000,939 Donaldson Lufkin & Jenrette, 6.76%, 7/3/00
(Collateralized by $6,441,011 various Government
Agency Securities, 5.50%-9.00%, 11/15/22-7/15/38,
market value $5,070,011).......................... 5,000,939
5,000,943 Goldman Sachs & Co., 6.79%, 7/3/00 (Collateralized
by $18,533,233 various Government Agency
Securities, 4.50%-14.00%, 8/15/00-6/20/30, market
value $5,070,181)................................. 5,000,943
5,501,024 Morgan Stanley & Company Inc., 6.70%, 7/3/00
(Collateralized by $9,149,069 various Government
Agency Securities, 5.00%-6.13%, 7/20/27-10/20/29,
market value $5,592,224).......................... 5,501,024
5,183,986 Salomon Smith Barney, 6.85%, 7/3/00
(Collateralized by $8,405,785 various Government
Agency Securities, 4.50%-9.00%, 9/15/00-6/15/30,
market value $5,256,298).......................... 5,183,986
------------
20,686,892
------------
Total Short-Term Securities Purchased with
Securities Lending Collateral..................... 32,160,204
------------
Total Investments (Cost $184,947,903) (a) -- 119.4%............ 182,351,599
Other assets in excess of liabilities -- (19.4)%............... (29,598,758)
------------
Total Net Assets -- 100.0%..................................... $152,752,841
============
</TABLE>
-------
Percentages indicated are based on net assets of $152,752,841.
(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......................................... $ 246,329
Unrealized depreciation......................................... (2,842,635)
-----------
Net unrealized depreciation..................................... $(2,596,304)
===========
</TABLE>
(b) 144a security which is restricted as to resale to institutional investors.
** Variable rate security. Rate present represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
See Notes to Financial Statements.
78
<PAGE>
Tax-Free Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (1.5%):
Louisiana (0.8%):
$1,000,000 Louisiana Housing Finance Agency, Single Family
Mortgage Revenue, 6.40%, 12/1/30, Callable 6/1/09 @
101, (LOC: GNMA/FNMA)............................... $ 1,036,250
------------
Oklahoma (0.7%):
1,000,000 Tulsa International Airport, 5.50%, 6/1/10, (Insured
by FGIC)............................................ 1,028,750
------------
Total Alternative Minimum Tax Paper................. 2,065,000
------------
MUNICIPAL BONDS (96.5%):
Arizona (0.8%):
1,070,000 Greater Arizona Development Authority, 6.00%,
8/1/13, (Insured by MBIA)........................... 1,128,850
------------
California (6.9%):
1,000,000 Anaheim Public Financing Authority, Lease Revenue,
Public Improvements Project, Series A, 6.00%,
9/1/24, (Insured by FSA)............................ 1,060,000
1,400,000 California State, GO, 7.00%, 6/1/05................. 1,552,250
2,000,000 California State, GO, 6.25%, 9/1/12................. 2,237,500
2,000,000 Orange County, Series A, 6.00%, 6/1/10 (Insured by
MBIA)............................................... 2,187,500
250,000 Sacramento County California Sanitation Financing
Authority, 6.00%, 12/1/15, Callable 12/1/10 @ 101... 265,000
2,445,000 San Francisco California City and County Airport,
5.35%, 5/1/10, Callable 5/1/06 @ 102, (Insured by
MBIA)............................................... 2,503,069
------------
9,805,319
------------
Colorado (7.1%):
3,000,000 Arapahoe County, Colorado School District, No. 5,
5.50%, 12/15/18, Callable 12/15/09 @ 100............ 2,947,499
2,265,000 Boulder County Colorado Sales and Use Tax, Series A,
6.00%, 12/15/18, Callable 12/15/09 @ 101, (Insured
by FGIC)............................................ 2,324,456
400,000 Colorado Housing Finance Authority, 4.25%, 10/1/05.. 395,000
650,000 Denver City & County Airport Revenue, Series C,
(AMT), 6.75%, 11/15/22, Prerefunded 11/15/02 @ 102.. 689,813
1,580,000 Denver Colorado City and County Airport Revenue,
6.75%, 11/15/22, (Insured by MBIA).................. 1,662,950
1,000,000 E-470 Public Highway Authority Revenue, Series C,
6.00%, 9/1/07, (Insured by MBIA).................... 1,060,000
1,000,000 El Paso County Colorado School No. 38, 6.00%,
12/1/24, Callable 12/1/10 @ 100..................... 1,015,000
------------
10,094,718
------------
Delaware (2.6%):
3,500,000 Delaware Transportation Authority, 6.00%, 7/1/16,
Callable 7/1/10 @ 100............................... 3,635,625
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Florida (2.8%):
$2,000,000 Florida State Board of Education, Series D, 5.75%,
6/1/19, Callable 6/1/10 @ 101....................... $ 2,017,500
1,885,000 Miami-Dade County Florida Aviation Revenue, 5.55%,
10/1/13, Callable 10/1/10 @ 101, (Insured by FGIC).. 1,896,781
------------
3,914,281
------------
Georgia (2.0%):
2,610,000 Georgia State, Series D, GO, 5.80%, 11/1/16,
Callable 11/1/09 @ 102.............................. 2,724,187
175,000 Private Colleges & Universities Authority, Mercer
University Project, Series A, 4.75%, 10/1/11,
Callable 10/1/09 @ 101.............................. 165,156
------------
2,889,343
------------
Hawaii (0.7%):
800,000 Honolulu City & County, Series A, 5.75%, 4/1/10..... 837,000
200,000 Honolulu City & County, Series A, ETM, 5.75%,
4/1/10.............................................. 210,750
------------
1,047,750
------------
Illinois (7.5%):
2,000,000 Chicago Metropolitan Water Reclamation District,
Capital Improvement, GO, 5.50%, 12/1/10............. 2,052,500
1,000,000 Chicago Public Building Commission, Series A, ETM,
7.00%, 1/1/20, (Insured by MBIA).................... 1,157,500
1,000,000 Chicago School Finance Authority, Series A, GO,
4.90%, 6/1/05, Callable 6/1/04 @ 102, (Insured by
MBIA)............................................... 1,000,000
1,740,000 Chicago Single Family Mortgage Revenue, Series A,
(AMT), 4.70%, 10/1/17, Callable 4/1/09 @ 102........ 1,705,200
1,745,000 Illinois Development Finance Authority, 6.38%,
1/1/17, Callable 1/1/11 @ 100, (Insured by FSA)..... 1,812,619
1,755,000 Illinois Development Finance Authority, 6.38%,
1/1/18, Callable 1/1/11 @ 100, (Insured by FSA)..... 1,816,425
1,000,000 Illinois State Sales Tax, Series S, 5.00%, 6/15/08.. 995,000
------------
10,539,244
------------
Indiana (4.5%):
4,000,000 Franklin Township Indiana School Building, 6.50%,
7/15/18, Callable 7/15/10 @ 102..................... 4,289,999
2,000,000 Indiana Municipal Power Supply Agency, System
Revenue, Series B, 6.00%, 1/1/13, (Insured by
MBIA)............................................... 2,137,500
------------
6,427,499
------------
Iowa (1.6%):
2,055,000 Iowa Finance Authority, Private College Revenue,
Drake University Project, 6.50%, 12/1/11, (Insured
by MBIA)............................................ 2,273,344
------------
</TABLE>
Continued
79
<PAGE>
Tax-Free Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Kansas (1.1%):
$1,500,000 Butler & Sedgwick Counties Kansas School District
385, 6.00%, 9/1/15, (Insured by FSA)................ $ 1,576,875
------------
Kentucky (0.8%):
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)............................................... 1,195,006
------------
Louisiana (0.1%):
165,000 Shreveport LA, GO, 4.00%, 2/1/08, (Insured by
FGIC)............................................... 150,975
------------
Massachusetts (0.7%):
1,000,000 Massachusetts State, Series B, GO, 5.40%, 11/1/06... 1,027,500
------------
Michigan (12.0%):
2,000,000 Battle Creek Downtown Development Authority, Tax
Increment Revenue, 7.30%, 5/1/10, Prerefunded 5/1/04
@ 102............................................... 2,205,000
650,000 Frankenmuth Michigan School District, 5.75%, 5/1/20,
Callable 5/1/10 @ 100, Q-SBLF, (Insured by FGIC).... 653,250
700,000 Genesee County Michigan Economic Development, Atlas
Technologies Inc., 4.95%*, 7/19/00, (LOC: Bank
One)................................................ 700,000
1,000,000 Genesee Michigan School District, 6.00%, 5/1/29, Q-
SBLF, (Insured by FSA).............................. 1,013,750
930,000 Kent County Airport Facility, Kent County
International Airport, (AMT), 5.50%, 1/1/07,
Prerefunded 1/1/05 @ 102............................ 964,875
2,000,000 Michigan State Hospital Finance Authority, Sisters
of Mercy, Series P, 5.25%, 8/15/21, Callable 8/15/03
@ 102, (Insured by MBIA)............................ 1,840,000
1,300,000 Michigan State Housing Development Authority, Rental
Housing Revenue, Series A, 5.15%, 4/1/02, (Insured
by AMBAC)........................................... 1,306,500
1,000,000 Michigan State South Central Power Agency, Power
Supply System Revenue, 5.80%, 11/1/05, (Insured by
MBIA)............................................... 1,041,250
700,000 Michigan State Strategic Fund, Accurate Boring,
4.95%*, 7/5/00, (LOC: Bank One)..................... 700,000
1,000,000 Michigan State Strategic Fund, Hope Network Project,
Series B, 5.13%, 9/1/13, Callable 9/1/08 @ 102,
(LOC: First of America)............................. 930,000
600,000 Michigan State Strategic, Kensington Group, 4.95%*,
7/5/00, (LOC: Bank One)............................. 600,000
1,040,000 Muskegon Heights Michigan Water System, 5.625%,
11/1/25, Callable 11/1/10 @ 100, (Insured by MBIA).. 1,012,700
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$1,100,000 Muskegon Heights Michigan Water System, 5.63%,
11/1/30, Callable 11/1/10 @ 100, (Insured by MBIA).. $ 1,064,250
800,000 Oakland County Michigan Economic Development,
4.95%*, 7/5/00, (LOC: Bank One)..................... 800,000
2,000,000 Rochester Michigan Community School District, 5.63%,
5/1/17, Callable 5/1/10 @ 100, Q-SBLF, (Insured by
FGIC)............................................... 2,012,500
------------
16,844,075
------------
Minnesota (4.5%):
1,000,000 Becker Minnesota Independent School District No.
726, 6.00%, 2/1/21, Callable 2/1/10 @ 100, (Insured
by FSA)............................................. 1,022,500
1,700,000 Minneapolis & St Paul Airport, Series A, 5.13%,
1/1/25, Callable 1/1/09 @101, (Insured by FGIC)..... 1,549,125
1,800,000 Minneapolis & St. Paul Airport, Series A, 5.00%,
1/1/19, Callable 1/1/08 @ 101....................... 1,640,250
2,150,000 Rochester Minn Independent School District No. 535,
5.88%, 2/1/20, Callable 2/1/10 @ 100................ 2,176,875
------------
6,388,750
------------
Mississippi (0.2%):
280,000 Mississippi Home Corp. Single Family Mortgage, Class
4, Series A, 4.80%, 6/1/19, Callable 6/1/09 @ 102... 272,300
------------
Missouri (4.5%):
50,000 Boone County Missouri School District R-6, 5.85%,
3/1/15, (LOC: State Aid Direct Deposit), Callable
3/1/10 @ 100........................................ 50,688
250,000 El Dorado Springs Missouri School District R-02,
5.65%, 3/1/15, (LOC: State Aid Direct Deposit)...... 250,938
315,000 El Dorado Springs Missouri School District R-02,
5.75%, 3/1/17, (LOC: State Aid Direct Deposit)...... 316,969
2,400,000 Greene County Missouri School District, 6.20%,
3/1/18, Callable 3/1/10 @ 100....................... 2,538,000
2,050,000 Lawson Missouri School District No. 14, 6.20%,
3/1/20, Callable 3/1/10 @ 100....................... 2,157,625
335,000 Missouri State, Health & Education Facilities,
6.50%, 2/15/21, Prerefunded 2/15/06 @ 102........... 366,825
165,000 Missouri State, Health & Education Facilities, Lake
of Ozarks General Hospital, 6.50%, 2/15/21, Callable
2/15/06 @ 102....................................... 159,225
115,000 Taney County Missouri School District R-III, 5.65%,
3/1/15, (LOC: State Aid Direct Deposit)............. 115,431
200,000 Taney County Missouri School District R-III, 5.70%,
3/1/16, (LOC: State Aid Direct Deposit)............. 201,000
</TABLE>
Continued
80
<PAGE>
Tax-Free Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Missouri (continued)
$ 225,000 Taney County Missouri School District R-III, 5.75%,
3/1/17, (LOC: State Aid Direct Deposit)............. $ 226,406
------------
6,383,107
------------
Nebraska (0.8%):
1,075,000 Omaha Public Power District, 5.10%, 2/1/08.......... 1,079,031
------------
Nevada (3.0%):
1,805,000 Clark County School District, GO, 5.75%, 6/15/10,
Prerefunded 6/15/06 @ 101, (Insured by FGIC)........ 1,895,250
2,000,000 Nevada State, Nevada Municipal Bond Bank, Series A,
GO, 8.00%, 11/1/05.................................. 2,290,000
------------
4,185,250
------------
New Jersey (2.3%):
1,500,000 New Jersey Economic Development Authority, Market
Transition Facility Revenue, Senior Lien, 7.00%,
7/1/04, (Insured by MBIA)........................... 1,620,000
1,500,000 New Jersey State Transportation Trust Fund
Authority, Transportation System, Series A, 6.00%,
12/15/06, (Insured by MBIA)......................... 1,593,750
------------
3,213,750
------------
New York (8.2%):
2,200,000 New York City Transitional Financial Authority,
5.75%, 11/15/16, Callable 5/15/10 @ 101............. 2,238,500
1,350,000 New York City, Municipal Water & Sewer Revenue,
5.50%, 6/15/24, Callable 6/15/06 @ 101.............. 1,290,938
1,500,000 New York City, Tax Revenue Anticipation Note,
Livingston Plaza Project, 5.40%, 1/1/18, (Insured by
FSA)................................................ 1,485,000
2,000,000 New York State Dormatory Authority, 5.13%, 5/15/21,
Callable 5/15/08 @ 101, (Insured by MBIA)........... 1,842,500
1,000,000 New York State Local Government Assistance Corp.,
Series A, 5.38%, 4/1/19, Callable 4/1/07 @ 101,
(Insured by FSA).................................... 961,250
1,000,000 New York State Thruway Authority, Series 1997 B,
6.00%, 4/1/07....................................... 1,046,250
1,000,000 Triborough Bridge and Tunnel Authority, 5.00%,
1/1/16, Callable 1/1/08 @ 101 (Insured by FGIC)..... 937,500
955,000 Westchester County, GO, 5.25%, 11/1/16, Callable
11/1/09 @ 101....................................... 923,963
845,000 Westchester County, GO, 5.25%, 11/1/17, Callable
11/1/09 @ 101....................................... 811,200
------------
11,537,101
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Ohio (2.4%):
$2,000,000 Cleveland, Ohio Public Power System, Revenue, Series
1, 5.13%, 11/15/18, Callable 11/15/06 @ 102,
(Insured by MBIA)................................... $ 1,882,500
1,445,000 Summit County Ohio, 6.00%, 12/1/21, Callable 12/1/10
@ 101, (Insured by FGIC)............................ 1,484,738
------------
3,367,238
------------
Oklahoma (0.8%):
1,000,000 Tulsa Industrial Authority, University of Tulsa,
Series A, 6.00%, 10/1/16, (Insured by MBIA)......... 1,061,250
------------
Oregon (1.4%):
2,000,000 Oregon State Bond Bank Economic Development, 5.50%,
1/1/18, Callable 1/1/08 @ 102, (Insured by MBIA).... 1,987,500
------------
Pennsylvania (1.4%):
2,000,000 Pennsylvania State UTGO, 6.00%, 1/15/19, Callable
1/15/10 @ 101....................................... 2,050,000
------------
Rhode Island (0.7%):
1,000,000 Convention Center Authority, Series B, 5.00%,
5/15/09, (Insured by MBIA).......................... 986,250
------------
South Carolina (1.5%):
2,470,000 Spartanburg South Carolina Sanitation Sewer, Series
B, 5.00%, 3/1/23, Callable 3/1/09 @ 101, (Insured by
MBIA)............................................... 2,189,038
------------
Tennessee (0.9%):
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)..................... 1,252,563
------------
Texas (8.6%):
1,000,000 Brownsville Utility System, 6.25%, 9/1/11, (Insured
by AMBAC)........................................... 1,083,750
3,000,000 Dallas Fort Worth Texas International Airport,
6.00%, 11/1/28, Callable 11/1/09 @ 100, (Insured by
FGIC)............................................... 2,992,500
1,080,000 Denton Texas Independent School District, 5.50%,
8/15/13, PSF-GTD.................................... 1,100,250
1,000,000 Harris County, Certificates of Obligation, 6.00%,
12/15/11............................................ 1,068,750
3,000,000 Laredo Texas Independent School District, GO, 5.25%,
8/1/24, Callable 8/1/09 @ 100, PSF-GTD.............. 2,778,749
2,000,000 Texas City Industrial Development Corp., Marine
Terminal Revenue, Arco Pipeline Co. Project, 7.38%,
10/1/20............................................. 2,347,500
815,000 Travis County Texas, GO, 5.75%, 3/1/17, Callable
3/1/10 @ 100........................................ 823,150
------------
12,194,649
------------
</TABLE>
Continued
81
<PAGE>
Tax-Free Income Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Utah (0.7%):
$1,000,000 St. George, Parks & Recreational Facilities, GO,
5.38%, 8/1/21, Callable 8/1/07 @ 101, (Insured by
FGIC)............................................... $ 948,750
------------
Washington (2.5%):
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)............ 1,036,250
2,500,000 Port Seattle Limited Tax, GO, (AMT), 5.35%, 5/1/04.. 2,531,250
------------
3,567,500
------------
Wyoming (0.9%):
1,275,000 Green River-Sweetwater County, Board Revenue, Series
B, 4.50%, 3/1/14, Callable 3/1/05 @ 100, (Insured by
FSA)................................................ 1,265,731
------------
Total Municipal Bonds............................... 136,480,162
------------
</TABLE>
<TABLE>
<CAPTION>
Security
Shares Description Market Value
------ ----------- ------------
<C> <S> <C>
INVESTMENT COMPANIES (0.5%):
$ 15,257 Dreyfus Tax Exempt Money Market Fund................. $ 15,257
692,393 Federated Tax Exempt Money Market Fund............... 692,393
------------
Total Investment Companies........................... 707,650
------------
Total Investments (Cost $136,280,477) (a) -- 98.5%............... 139,252,812
Other assets in excess of liabilities -- 1.5%.................... 2,133,021
------------
Total Net Assets -- 100.0%....................................... $141,385,833
============
</TABLE>
-------
Percentages indicated are based on net assets of $141,385,833.
(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.......................................... $3,266,785
Unrealized depreciation.......................................... (294,450)
----------
Net unrealized appreciation...................................... $2,972,335
==========
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
AMBAC -- AMBAC Indemnity Corp.
AMT -- Alternative Minimum Tax Paper
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Corp.
FNMA -- Fannie Mae
FSA -- Financial Security Assurance
GNMA -- Ginnie Mae
GO -- General Obligation
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
PSF-GTD -- Permanent School Fund Guarantee
Q-SBLF -- Qualified School Bond Loan Fund
See Notes to Financial Statements.
82
<PAGE>
Intermediate Tax-Free Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (98.4%):
Alaska (0.4%):
$1,000,000 Anchorage Electric Utility, Revenue Bond, Senior
Lien, 5.50%, 12/1/03, Callable 6/1/03 @ 102 (Insured
by MBIA)............................................ $ 1,021,250
------------
Arizona (4.6%):
2,290,000 Glendale Arizona Water and Sewer Revenue, 5.00%,
7/1/06, (Insured by FGIC)........................... 2,301,450
2,040,000 Glendale Arizona Water and Sewer Revenue, 5.00%,
7/1/07, (Insured by FGIC)........................... 2,047,650
1,050,000 Pima County Arizona University School District,
5.75%, 7/1/12, Callable 7/1/09
@ 100, (Insured by FGIC)............................ 1,093,313
5,000,000 Salt River Project Agricultural Improvement & Power
District Electric System, Series A, 5.63%, 1/1/06... 5,181,250
2,000,000 Tucson Arizona Street and Highway User Revenue,
5.50%, 7/1/09, Callable 7/1/03 @ 102................ 2,272,500
------------
12,896,163
------------
Arkansas (0.4%):
1,000,000 Arkansas State Economic Development, 5.00%, 2/1/03
(Insured by AMBAC).................................. 1,002,500
------------
California (5.4%):
1,000,000 California Educational Facilities Authority, Santa
Clara University, 5.25%, 9/1/17 (Insured by AMBAC).. 982,500
500,000 California Educational Facilities Authority, Santa
Clara University, 5.25%, 9/1/18 (Insured by AMBAC).. 487,500
3,400,000 California State, GO, 6.60%, 2/1/10................. 3,867,500
3,000,000 Orange County, Series A, 6.00%, 6/1/10 (Insured by
MBIA)............................................... 3,281,250
5,850,000 University of California Revenue, Multiple Purpose
Projects, Series B, 9.00%, 9/1/03 (Insured by
MBIA)............................................... 6,625,124
------------
15,243,874
------------
Colorado (7.2%):
4,000,000 Arapahoe County Colorado School District No. 005,
Cherry Creek, Series A, GO, 5.25%, 12/15/02......... 4,060,000
4,030,000 Boulder County Colorado Sales and Use Tax Revenue,
6.00%, 12/15/17, Callable 12/15/09 @ 101, (Insured
by FGIC)............................................ 4,155,937
415,000 Colorado Housing Finance Authority, 4.50%, 11/1/05.. 413,128
500,000 Colorado Housing Finance Authority, 5.40%, 10/1/06.. 500,000
900,000 Colorado Housing Financial Authority, 5.10%,
10/1/06............................................. 898,875
940,000 Colorado Housing Financial Authority, Single Family
Series 3, 4.70%, 10/1/22, Callable 10/1/09 @ 102.... 936,268
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Colorado (continued)
$1,000,000 Colorado Springs Utility Revenue, Series A, 6.50%,
11/15/03, Callable 11/15/01 @ 102................... $ 1,042,500
2,000,000 Denver Colorado City and County Airport Facilities,
(AMT), 5.00%, 1/1/04 (Insured by MBIA).............. 2,010,000
2,000,000 Denver Colorado City and County Airport Revenue,
7.75%, 11/15/21, Callable 11/15/01 @ 102............ 2,097,500
1,150,000 El Paso County Colorado School District Number 38,
GO, 6.38%, 12/1/16, Callable 12/1/10 @ 100, (Insured
by St Aid Withholding).............................. 1,227,625
1,005,000 El Paso County Colorado School District Number 38,
GO, 6.38%, 12/1/18, Callable 12/1/10 @ 100, (Insured
by St Aid Withholding).............................. 1,061,531
1,875,000 Longmont Colorado Sales and Use Tax Revenue, 5.50%,
11/15/14, Callable 11/15/10 @ 100................... 1,898,438
------------
20,301,802
------------
Florida (3.7%):
1,000,000 Broward County School District, GO, 5.20%, 2/15/03.. 1,008,750
1,000,000 Hillsborough County Florida Development Authority
Revenue, 6.38%, 12/1/12, Prerefunded 12/1/03 @ 100,
(Insured by MBIA)................................... 1,052,500
2,000,000 Lakeland Electric & Water Revenue, 5.90%, 10/1/07... 2,120,000
1,750,000 Miami-Dade County Florida Aviation Revenue, 5.45%,
10/1/12, (AMT), Callable 10/1/10 @ 101 (Insured by
FGIC)............................................... 1,760,938
1,575,000 Miami-Dade County Florida Aviation Revenue, 5.40%,
10/1/11, (AMT), Callable 10/1/10 @ 101 (Insured by
FGIC)............................................... 1,590,750
2,810,000 St. Petersburg Florida Health Authority, 7.00%,
12/1/15, Callable 12/1/01 @ 102 (Insured by MBIA)... 2,936,450
------------
10,469,388
------------
Georgia (1.5%):
2,670,000 Atlanta Airport Facilities Revenue, (AMT), Series B,
5.50%, 1/1/03 (Insured by AMBAC).................... 2,703,375
1,500,000 Georgia State, Series B, GO, 5.95%, 3/1/08.......... 1,595,625
------------
4,299,000
------------
Hawaii (0.4%):
855,000 Honolulu Hawaii City & County, 5.60%, 1/1/05........ 878,513
170,000 Honolulu Hawaii City & County, ETM, 5.60%, 1/1/05... 175,525
------------
1,054,038
------------
</TABLE>
Continued
83
<PAGE>
Intermediate Tax-Free Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Idaho (1.2%):
$1,500,000 Ada & Canyon Counties, Joint School District No. 2
Meridan, GO, 5.50%, 7/30/13......................... $ 1,531,875
1,915,000 Ada & Canyon Counties, Joint School District No. 2,
Meridan, GO, 5.50%, 7/30/14......................... 1,943,725
------------
3,475,600
------------
Illinois (7.1%):
1,000,000 Chicago Illinois Water Revenue, 5.13%, 11/1/16,
(Insured by FGIC)................................... 961,250
1,000,000 Chicago Illinois, GO, Emergency Telephone System,
5.25%, 1/1/15 (Insured by FGIC)..................... 976,250
3,000,000 Chicago Metropolitan Water Reclamation District,
Capital Improvement, GO, 5.50%, 12/1/10............. 3,078,750
1,000,000 Chicago Metropolitan Water Reclamation District,
Working Cash Fund, 5.90%, 12/1/04................... 1,040,000
305,000 Chicago, GO, 6.00%, 1/1/09, Callable 1/1/08 @ 102
(Insured by FGIC)................................... 323,681
1,770,000 Chicago, GO, Emergency Telephone System, 5.25%,
1/1/18 (Insured by FGIC)............................ 1,674,863
4,000,000 Illinois Development Finance Authority, Pollution
Control Revenue, Commonwealth Edison, 5.30%, 1/15/04
(Insured by MBIA)................................... 4,055,000
1,300,000 Illinois Developmental Finance Authority Revenue,
6.38%, 1/1/15, (Insured by FSA)..................... 1,366,625
1,470,000 Illinois Developmental Financial Authority Revenue,
6.38%, 1/1/16, Callable 1/1/11 @100, (Insured by
FSA)................................................ 1,537,987
3,135,000 Northwest Suburban Municipal Joint Action, Water
Agency, Water Supply System, Series A, 5.25%, 5/1/04
(Insured by MBIA)................................... 3,178,106
1,530,000 Regional Transportation Authority Illinois, 6.00%,
6/1/14, (Insured by FGIC)........................... 1,621,800
------------
19,814,312
------------
Indiana (2.7%):
1,100,000 Greenwood Indiana School Building Corp., 4.75%,
7/15/07............................................. 1,091,750
2,000,000 Indiana Municipal Power Supply Agency, System
Revenue, Series B, 5.88%, 1/1/10 (Insured by MBIA).. 2,130,000
3,000,000 Indiana Municipal Power Supply Agency, System
Revenue, Series B, 6.00%, 1/1/13, (Insured by
MBIA)............................................... 3,206,250
1,565,000 Indianapolis Utilities District, Series B, 3.50%,
6/1/18 (Insured by FGIC)............................ 1,191,356
------------
7,619,356
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Iowa (0.7%):
$2,000,000 Chillicothe Pollution Control Revenue Bond, 4.25%,
11/1/23, Mandatory Put 11/1/03 @ 100................ $ 1,920,000
------------
Kansas (0.4%):
1,000,000 Butler & Sedgwick Counties School District No. 385,
GO, 5.70%, 9/1/13, (Insured by FSA)................. 1,031,250
------------
Louisiana (2.4%):
4,000,000 Louisiana State, Series A, GO, 5.30%, 8/1/04
(Insured by MBIA)................................... 4,070,000
2,500,000 Louisiana State, Series A, GO, 6.00%, 4/15/07
(Insured by FGIC)................................... 2,640,625
------------
6,710,625
------------
Maryland (1.4%):
3,675,000 Baltimore County Maryland GO, 6.00%, 6/1/05......... 3,872,531
50,000 Maryland State Refunding Bond, GO, 4.20%, 8/1/01.... 49,921
------------
3,922,452
------------
Massachusetts (2.2%):
5,000,000 Massachusetts State Port Authority Revenue, (AMT),
Series B, 5.00%, 7/1/07 (Insured by FSA)............ 4,968,750
1,300,000 Massachusetts State, GO, 5.25%, 9/1/08.............. 1,321,125
------------
6,289,875
------------
Michigan (17.2%):
2,215,000 Battle Creek Downtown Development Authority, 6.00%,
5/1/07 (Insured by MBIA)............................ 2,347,900
4,000,000 Battle Creek Downtown Development Authority, Tax
Increment Revenue, 7.30%, 5/1/10, Prerefunded 5/1/04
@ 102............................................... 4,410,000
300,000 Cadillac Public Schools, GO, 7.25%, 5/1/05 (Insured
by FGIC)............................................ 330,000
1,525,000 Detroit Michigan GO, 4.10%, 4/1/03.................. 1,465,906
6,000,000 Detroit Water Supply System, Permanent Linked Bonds,
5.25%, 7/1/13, Callable 7/1/04 @ 102 (Insured by
FGIC)............................................... 5,984,999
2,265,000 Grand Ledge Public Schools District, GO, 5.35%,
5/1/10 (Insured by MBIA)............................ 2,313,131
205,000 Grand Rapids Charter Township, Porter Hills
Obligated, 4.20%, 7/1/03............................ 198,850
210,000 Grand Rapids Charter Township, Porter Hills
Obligated, 4.25%, 7/1/04............................ 201,600
200,000 Grand Rapids Charter Township, Porter Hills
Obligated, 4.35%, 7/1/05............................ 190,500
1,700,000 Greater Detroit Resource Recovery Authority, Series
A, 5.50%, 12/13/04 (Insured by AMBAC)............... 1,742,500
</TABLE>
Continued
84
<PAGE>
Intermediate Tax-Free Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$2,000,000 Kalamazoo Hospital Finance Authority, Refunding &
Improvement, Bronson Methodist Hospital, 5.35%,
5/15/06 (Insured by MBIA)........................... $ 2,025,000
250,000 Michigan Higher Education Facilities Authority,
4.50%, 10/1/07...................................... 232,500
590,000 Michigan Higher Education Facilities Authority,
4.80%, 10/1/10, Callable 10/1/09 @ 100.............. 547,963
1,000,000 Michigan Higher Education Facilities Authority,
5.35%, 5/1/15, Callable 5/1/08 @ 101 (LOC: First of
America)............................................ 937,500
320,000 Michigan Higher Education Facilities Authority, Hope
College Project, 4.60%, 10/1/08..................... 296,800
200,000 Michigan Higher Education Facilities Authority, Hope
College Project, 4.70%, 10/1/09..................... 185,500
3,885,000 Michigan Higher Education Student Loan Authority,
(AMT), 5.05%, 9/1/08 (Insured by AMBAC)............. 3,812,156
1,450,000 Michigan State Hospital Finance Authority, St. John
Hospital & Medical Center,
5.00%, 5/15/06 (Insured by AMBAC)................... 1,460,875
1,000,000 Michigan State South Central Power Agency, Power
Supply System Revenue, 5.80%, 11/1/05, (Insured by
MBIA)............................................... 1,041,250
1,000,000 Michigan State Strategic Fund, Hope Network Project,
Series B, 4.80%, 9/1/08, (LOC: First of America) 942,500
2,300,000 Michigan State Strategic Fund, Limited Obligation
Revenue, Ford Motor Co. Project, Series A, 7.10%,
2/1/06.............................................. 2,512,750
2,500,000 Michigan State Trunk Line, Series A,
5.50%, 10/1/02...................................... 2,543,750
3,500,000 Michigan State Underground Storage Tank Financial
Assurance Authority, Series I, 6.00%, 5/1/05
(Insured by AMBAC).................................. 3,661,875
340,000 Muskegon Heights Michigan Water System, 5.25%,
11/1/09, (Insured by MBIA).......................... 343,825
2,000,000 Northville Public Schools, Series A, GO, 7.00%,
5/1/08, Callable 5/1/01 @ 102, (Insured by Q-SBLF) 2,073,880
1,575,000 South Redford School District, GO, 5.25%, 5/1/09,
Prerefunded 5/1/07 @ 100, (Insured by FGIC)......... 1,606,500
3,000,000 University of Michigan University Revenue, Series A,
4.55%*, 6/13/00..................................... 3,000,000
1,600,000 University of Michigan University Revenue, Series A,
4.55%*, 7/3/00...................................... 1,600,000
------------
48,010,010
------------
Minnesota (1.6%):
500,000 Maple Grove Minnesota Road Reconstruction, GO,
Series B, 5.40%, 2/1/17, Callable 2/1/07 @ 100...... 489,375
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Minnesota (continued)
$2,880,000 St. Louis Park Minnesota Independent School, GO,
5.65%, 2/1/16, Callable 2/1/09 @ 100, (Insured by SD
Credit)............................................. $ 2,908,799
1,110,000 St. Louis Park Minnesota Independent School, GO,
5.70%, 2/1/17, Callable 2/1/09 @ 100, (Insured by SD
Credit)............................................. 1,119,713
------------
4,517,887
------------
Missouri (1.6%):
2,000,000 Clay County Missouri Public School District, GO,
6.25%, 3/1/17, Callable 3/1/10 @ 100, (Insured by St
Aid Direct Deposit)................................. 2,092,500
650,000 St. Joseph Missouri School District, GO, 6.50%,
3/1/13, (Insured by FSA St Aid Direct Deposit)...... 714,188
750,000 St. Joseph Missouri School District, GO, 6.50%,
3/1/14, (Insured by FSA St Aid Direct Deposit)...... 821,250
200,000 Wright County Missouri Reorganizational School
District No. R-4, GO, 5.6%, 3/1/14, Callable 3/1/10
@ 100, (Insured by State Aid Direct Deposit)........ 201,000
200,000 Wright County Missouri Reorganizational School
District No. R-4, GO, 5.65%, 3/1/15, Callable 3/1/10
@ 100, (Insured by State Aid Direct Deposit)........ 200,750
250,000 Wright County Missouri Reorganizational School
District No. R-4, GO, 5.70%, 3/1/16, Callable 3/1/10
@ 100, (Insured by State Aid Direct Deposit)........ 251,250
90,000 Wright County Missouri School District No. R-2, GO,
5.50%, 3/1/12, Callable 3/1/10 @ 100, (Insured by
State Aid Direct Deposit)........................... 90,225
95,000 Wright County Missouri School District No. R-2, GO,
5.55%, 3/1/13, Callable 3/1/10 @ 100, (Insured by
State Aid Direct Deposit)........................... 95,119
------------
4,466,282
------------
Nebraska (0.2%):
500,000 Omaha Nebraska, GO, 5.13%, 11/15/14, Callable
11/15/09 @ 102...................................... 485,000
------------
New Jersey (4.6%):
6,000,000 New Jersey Economic Development Authority, Market
Transition Facility Revenue, Senior Lien, 7.00%,
7/1/04, (Insured by MBIA)........................... 6,479,999
1,000,000 New Jersey Economic Development Authority, Market
Transition Facility Revenue, Series A 1994, 7.00%,
7/1/03 (Insured by MBIA)............................ 1,062,500
2,500,000 New Jersey State Turnpike Authority Revenue, 6.00%,
1/1/13, (Insured by MBIA)........................... 2,678,125
</TABLE>
Continued
85
<PAGE>
Intermediate Tax-Free Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
New Jersey (continued)
$2,500,000 Ocean County Utilities Authority, Wastewater
Revenue, Refunding, GO, 6.00%, 1/1/07............... $ 2,650,000
------------
12,870,624
------------
New York (3.3%):
1,030,000 Metropolitan Transportation Authority, Series M,
5.50%, 7/1/08 (Insured by FGIC)..................... 1,064,763
1,000,000 New York State Local Government Assistance Corp.,
Series A, 5.38%, 4/1/19, Callable 4/1/07 @ 101,
(Insured by FSA).................................... 961,250
1,660,000 New York State Urban Development Corp., Refunding,
Syracuse University Center, 5.50%, 1/1/15........... 1,655,850
3,000,000 Triborough Bridge & Tunnel Authority, General
Purpose, Series Y, 5.50%, 1/1/17.................... 3,011,250
1,250,000 Triborough Bridge and Tunnel Authority, 5.00%,
1/1/16, Callable 1/1/08 @ 101 (Insured by FGIC)..... 1,171,875
1,510,000 Westchester County New York, GO, 5.25%, 11/1/13,
Callable 11/1/09 @ 101.............................. 1,508,113
------------
9,373,101
------------
North Carolina (0.7%):
2,000,000 North Carolina Municipal Power Agency No. 1, Catawba
Electric Revenue, 5.90%, 1/1/03..................... 2,020,000
------------
Ohio (3.7%):
500,000 Cleveland Airport System Revenue, Series A, 5.50%,
1/1/04, (Insured by FSA)............................ 508,750
500,000 Cleveland-Cuyahoga County Port Authority, Rock &
Roll Hall of Fame, Refunding, Subordinated Bonds,
4.90%, 12/1/00...................................... 499,360
2,755,000 Ohio Housing Financial Agency Management Revenue,
5.35%, 9/1/05, (AMT), (Insured by GNMA)............. 2,765,331
5,000,000 Ohio State Turnpike Commission, Series A, 5.50%,
2/15/16, (Insured by FGIC).......................... 5,062,500
1,060,000 Summit County Ohio, GO, 5.75%, 12/1/07, (Insured by
FGIC)............................................... 1,113,000
400,000 Summit County Ohio, GO, 6.00%, 12/1/09, (Insured by
FGIC)............................................... 429,000
------------
10,377,941
------------
Oklahoma (1.7%):
4,500,000 Tulsa Industrial Authority, University of Tulsa,
Series A, 6.00%, 10/1/16, (Insured by MBIA)......... 4,775,625
------------
Pennsylvania (3.7%):
2,000,000 Allegheny County Airport Revenue, (AMT), 5.00%,
1/1/02 (Insured by MBIA)............................ 2,005,000
4,205,000 Chartiers Valley Joint School, ETM, 6.15%, 3/1/07... 4,394,225
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Pennsylvania (continued)
$4,000,000 Pennsylvania Intergovernmental Cooperative, 6.00%,
6/15/02, (Insured by FGIC).......................... $ 4,075,000
------------
10,474,225
------------
Rhode Island (0.4%):
1,000,000 State Depositors Economic Protection Corp., Series
B, Special Obligation, 5.20%, 8/1/03 (Insured by
MBIA)............................................... 1,011,250
------------
South Carolina (0.3%):
890,000 Anderson County South Carolina School District No.
2, GO, 6.00%, 3/1/13, Callable 3/1/10 @ 100,
(Insured by SCSDE).................................. 942,288
------------
Tennessee (0.2%):
600,000 Shelby County Tennessee Health & Education, St.
Jude's Children's Research, 4.65%, 7/1/04........... 585,000
------------
Texas (9.5%):
400,000 Brownsville Texas Independent School District, GO,
7.25%, 8/15/04...................................... 434,500
2,250,000 Central Texas Higher Education Authority, Inc.,
4.85%, 12/1/02, GSL................................. 2,244,375
2,245,000 Dallas Independent School District, GO, 5.40%,
8/15/03, (Insured by PSF)........................... 2,284,288
2,800,000 Harris County Texas Industrial Development
Corporation Pollution Control Revenue, 4.60%*,
8/15/27............................................. 2,800,000
1,500,000 Houston Water & Sewer System Revenue, Junior Lien,
Series C, 5.75%, 12/1/03 (Insured by MBIA).......... 1,546,875
1,050,000 Round Rock Independent School District, GO, 5.25%,
2/15/05, (Insured by PSF)........................... 1,064,438
1,400,000 San Antonio Electric & Gas, 5.25%, 2/1/11, Callable
2/1/09 @ 101........................................ 1,405,250
2,980,000 San Antonio Texas Water Revenue, Unrefunded Balance,
6.30%, 5/15/04, Callable 5/15/02 @ 102 (Insured by
FGIC)............................................... 3,114,100
5,595,000 Texas State Public Finance Authority, Series A, GO,
6.50%, 10/1/04...................................... 5,951,681
4,450,000 Texas State, Series A, GO, 5.70%, 10/1/03........... 4,583,500
1,015,000 University of Texas, University Revenue, Series A,
6.60%, 8/15/02, Callable 8/15/01 @ 102.............. 1,055,600
------------
26,484,607
------------
Virginia (1.7%):
4,675,000 Metropolitan Washington DC Airports, 5.50%,
10/1/05............................................. 4,780,188
------------
Washington (5.0%):
1,010,000 Port Tacoma Washington, (AMT), 4.90%, 12/1/07,
(Insured by AMBAC).................................. 982,225
1,125,000 Tacoma Washington Electric Systems Revenue, 6.00%,
1/1/06, (Insured by AMBAC).......................... 1,178,438
</TABLE>
Continued
86
<PAGE>
Intermediate Tax-Free Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Washington (continued)
$1,570,000 Tacoma Washington Electric Systems Revenue, Pre-
Refunded, 6.00%, 1/1/06, (Insured by AMBAC)......... $ 1,650,463
1,000,000 Washington State, Motor Vehicle Fuel Tax, R-92D, GO,
6.25%, 9/1/07....................................... 1,072,500
8,000,000 Washington State, Series A, GO, 5.50%, 9/1/05,
Callable 9/1/04 @ 100............................... 8,179,999
850,000 Washington State, Series III-H, Motor Vehicle Fuel
Tax, 5.75%, 9/1/12.................................. 887,188
------------
13,950,813
------------
Wisconsin (0.9%):
2,500,000 Milwaukee County Revenue, Series B, 4.35%, 6/1/29,
Mandatory put 12/1/04 @ 100, (LOC: First National
Bank)............................................... 2,500,000
------------
Wyoming (0.4%):
1,000,000 Campbell County School District, No. 001 Gillette,
GO, 5.15%, 6/1/02................................... 1,011,250
------------
Total Municipal Bonds............................... 275,707,576
------------
INVESTMENT COMPANIES (0.1%):
3,525 Dreyfus Tax Exempt Money Market Fund................ 3,525
240,904 Federated Tax Exempt Money Market Fund.............. 240,904
------------
Total Investment Companies.......................... 244,429
------------
Total Investments (Cost $269,436,006) (a) -- 98.5%.............. 275,952,005
Other assets in excess of liabilities -- 1.5%................... 4,087,250
------------
Total Net Assets -- 100.0%...................................... $280,039,255
============
</TABLE>
-------
Percentages indicated are based on net assets of $280,039,255.
(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......................................... $ 7,626,698
Unrealized depreciation......................................... (1,110,699)
-----------
Net unrealized appreciation..................................... $ 6,515,999
===========
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June 30,
2000. Maturity date reflects next rate change date.
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
GSL -- Guarantee Student Loans
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
PSF-GTD -- Permanent School Fund Guarantee
SCSDE -- South Carolina School District Enhancement
See Notes to Financial Statements.
87
<PAGE>
Michigan Municipal Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
MUNICIPAL BONDS (100.7%):
Michigan (100.7%):
$ 1,130,000 Allegan Sanitary Sewer System, (AMT), 5.45%,
11/1/02............................................ $ 1,134,238
2,000,000 Battle Creek Downtown Development Authority, Tax
Increment Revenue, 6.90%, 5/1/04................... 2,110,000
800,000 Bay County Michigan Economic Development, 4.95*,
7/5/00, (LOC: Banc One)............................ 800,000
1,300,000 Berkley School District, GO, 7.00%, 1/1/07,
(Insured by FGIC).................................. 1,443,000
635,000 Bishop International Airport Authority, 4.88%,
12/1/01............................................ 633,413
1,000,000 Brighton Michigan Area School District, GO, 4.30%,
5/1/07, (Insured by FSA)........................... 948,750
260,000 Chippewa County Hospital Finance Authority, 4.60%,
11/1/00............................................ 259,680
1,000,000 Chippewa Valley School District, GO, 6.38%, 5/1/05,
Prerefunded 5/1/01 @ 101.5 (Insured by FGIC)....... 1,030,280
1,700,000 Clintondale Community School District GO, 4.65%,
5/1/03............................................. 1,693,625
100,000 Dearborn Heights Tax Increment, 4.25%, 10/1/05,
(Insured by FSA)................................... 96,125
965,000 Dearborn Sewage Disposal System, 6.90%, 4/1/02
(Insured by MBIA).................................. 999,981
1,630,000 Detroit Michigan City School District, 3.90%,
5/1/03 (Insured by MBIA)........................... 1,574,988
1,000,000 Detroit Michigan City School District, 3.90%,
11/1/03 (Insured by MBIA).......................... 961,250
2,000,000 Detroit Michigan Economic Development, 6.60%,
5/1/02, Callable 5/1/01 @ 102, (Insured by FSA).... 2,065,000
1,195,000 Detroit Michigan UTGO, 5.50%, 4/1/08............... 1,214,419
1,000,000 Detroit Michigan UTGO, Series A, 3.90%, 4/1/02..... 971,250
1,000,000 Detroit, GO, 5.00%, 4/1/04 (Insured by FGIC)....... 1,005,000
750,000 Detroit, GO, 6.00%, 4/1/06 (Insured by FGIC)....... 789,375
1,570,000 Detroit, Local Development Finance Authority, Tax
Increment Revenue, 5.25%, 5/1/07................... 1,562,150
1,730,000 Dexter Community School District, GO, 6.25%, 5/1/07
(Insured by FGIC).................................. 1,859,750
100,000 East Detroit School District, 4.25%, 5/1/08,
(Insured by FGIC).................................. 93,500
1,000,000 Eastern Michigan University, GO, 5.80%, 6/1/01
(Insured by AMBAC)................................. 1,013,100
445,000 Farmington Hills Economic Development Corp.
Revenue, Botsford Continuing Care, Series A, 5.10%,
2/15/04 (Insured by MBIA).......................... 447,225
470,000 Farmington Hills Economic Development Corp.
Revenue, Botsford Continuing Care, Series A, 5.20%,
2/15/05 (Insured by MBIA).......................... 472,938
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 250,000 Frankenmuth Michigan School District, GO, 5.50%,
5/1/04, Q-SBLF..................................... $ 255,000
100,000 Frankenmuth Michigan School District, GO, 5.50%,
5/1/05, Q-SBLF..................................... 102,375
125,000 Frankenmuth Michigan School District, GO, 5.50%,
5/1/06, Q-SBLF..................................... 128,281
410,000 Frankenmuth Michigan School District, GO, 5.50%,
5/1/07, Q-SBLF..................................... 420,763
260,000 Frankenmuth Michigan School District, GO, 5.50%,
5/1/08, Q-SBLF..................................... 266,500
260,000 Grand Haven Area Public Schools, 5.45%, 5/1/04,
Callable 5/1/03 @ 102, (Insured by MBIA)........... 265,850
740,000 Grand Haven Area Public Schools, 5.45%, 5/1/04,
Prerefunded 5/1/03 @ 102, (Insured by MBIA)........ 766,825
505,000 Grand Rapids & Kent County Michigan Joint Building
Authority, GO, 5.50%, 10/1/06...................... 520,150
535,000 Grand Rapids & Kent County Michigan Joint Building
Authority, GO, 5.50%, 10/1/07...................... 551,050
565,000 Grand Rapids & Kent County Michigan Joint Building
Authority, GO, 5.50%, 10/1/08...................... 581,244
605,000 Grand Rapids & Kent County Michigan Joint Building
Authority, GO, 5.50%, 10/1/09...................... 622,394
510,000 Grand Rapids Charter Township Michigan, 4.10%,
7/1/02............................................. 497,250
1,250,000 Greater Detroit Resource Recovery Authority, Series
B, 5.00%, 12/13/02 (Insured by AMBAC).............. 1,257,813
1,250,000 Huron Valley School District, GO, 7.10%, 5/1/08,
Prerefunded 5/1/01 @ 102 (Insured by FGIC)......... 1,301,100
750,000 Kalamazoo Hospital Finance Authority Revenue,
Bronson Methodist Hospital, 5.50%, 5/15/08 (Insured
by MBIA)........................................... 764,063
1,810,000 Kalamazoo Hospital Finance Authority, Refunding &
Improvement, Bronson Methodist Hospital, 4.95%,
5/15/02 (Insured by MBIA).......................... 1,814,525
1,000,000 Kalamazoo Hospital Finance Authority, Refunding &
Improvement, Bronson Methodist Hospital, 5.25%,
5/15/05 (Insured by MBIA).......................... 1,008,750
1,295,000 Kenowa Hills Public Schools, GO, 5.50%, 5/1/05..... 1,328,994
500,000 Kent County Airport Facility, Kent County
International Airport, (AMT), 5.25%, 1/1/04........ 505,000
645,000 Kent County Airport Facility, Kent County
International Airport, (AMT), 4.30%, 1/1/05
(Insured by MBIA).................................. 616,781
</TABLE>
Continued
88
<PAGE>
Michigan Municipal Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 505,000 Kent County Airport Facility, Kent County
International Airport, (AMT), 5.30%, 1/1/05........ $ 511,313
1,150,000 Kent Hospital Finance Authority, Butterworth
Hospital, 4.90%, 1/15/05........................... 1,132,750
2,000,000 Lake Orion Community School District, GO, 6.20%,
5/1/04 (Insured by AMBAC).......................... 2,097,500
1,326,134 Michigan Department of State Police Lease, 4.95%,
3/10/02............................................ 1,311,215
1,265,000 Michigan Higher Education Facility Authority --
Thomas M. Cooley Law School, 4.75%, 5/1/07, (LOC:
National City)..................................... 1,208,075
2,525,000 Michigan Higher Education Student Loan Authority
Revenue, (AMT), 5.00%, 3/1/07, (Insured by AMBAC).. 2,480,812
1,020,000 Michigan Municipal Bond Authority, Local Government
Loan Program, Qualified School, 6.35%, 5/15/01..... 1,037,371
1,000,000 Michigan Municipal Bond Authority, Pooled Projects,
Series B, 5.10%, 10/1/04........................... 1,011,250
750,000 Michigan Public Power Agency, Belle River Project,
Series A, 5.70%, 1/1/03............................ 765,000
1,000,000 Michigan State Building Authority, Series I, 4.25%,
10/15/05........................................... 961,250
1,000,000 Michigan State Building Authority, Series II,
6.10%, 10/1/01..................................... 1,018,750
3,000,000 Michigan State Comprehensive Transportation, Series
B, 5.63%, 5/15/03, Callable 5/15/02 @ 102.......... 3,067,499
1,855,000 Michigan State Hospital Finance Authority, Bay
Medical Center, Series A, 5.38%, 7/1/06 (Insured by
FSA)............................................... 1,880,506
1,940,000 Michigan State Hospital Finance Authority,
Daughters of Charity National Health System, 4.80%,
11/1/17, Prerefunded 11/1/04 @ 100................. 1,932,725
2,000,000 Michigan State Hospital Finance Authority, McLaren
Obligated Group, Series A, 5.75%, 10/15/03......... 2,025,000
370,000 Michigan State Hospital Finance Authority, Memorial
Healthcare Center, 4.40%, 11/15/01................. 362,600
1,500,000 Michigan State Hospital Finance Authority, Mercy
Health Services, Series S, 6.00%, 8/15/06.......... 1,543,125
1,000,000 Michigan State Hospital Finance Authority, Sisters
of Mercy Health Corp. Bond 1993, Series F, 4.60%,
8/15/02 (Insured by MBIA).......................... 996,250
1,000,000 Michigan State Hospital Finance Authority, St. John
Hospital & Medical Center, 5.00%, 5/15/05 (Insured
by AMBAC).......................................... 1,008,750
2,680,000 Michigan State Housing Development Authority,
Rental Housing Revenue, Series A, (AMT), 5.25%,
10/1/01 (Insured by MBIA).......................... 2,690,049
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 500,000 Michigan State Strategic Fund, Dow Chemical Co.,
4.55%*, 7/3/00...................................... $ 500,000
700,000 Michigan State Strategic Fund, Glastender, Inc.,
4.95%*, 7/5/00, (LOC: Bank One)..................... 700,000
3,270,000 Michigan State Underground Storage, Tank Financial
Assurance Authority, Series I, 6.00%, 5/1/06
(Insured by AMBAC).................................. 3,441,674
505,000 Michigan Strategic Fund, Clark Retirement Community
Project, 4.50%, 6/1/03.............................. 488,588
520,000 Michigan Strategic Fund, Clark Retirement Community
Project, 4.60% 6/1/04............................... 490,100
610,000 Michigan Strategic Fund, Clark Retirement Community
Project, 4.85%, 6/1/07.............................. 555,100
615,000 Michigan Strategic Fund, Hope Network Project,
Series B, 4.75%, 9/1/07, (LOC: First of America).... 581,944
1,400,000 Midland County Economic Development, Dow Chemical
Co., Series A, (AMT), 4.60%*, 7/3/00................ 1,400,000
1,000,000 Mount Clemens Community School District, GO, 6.60%,
5/1/20, Prerefunded 5/1/02 @ 102 (Insured by MBIA).. 1,052,500
335,000 Muskegon Heights Michigan Water System, 5.25%,
11/1/06, (Insured by MBIA).......................... 340,444
355,000 Muskegon Heights Michigan Water System, 5.25%,
11/1/07, (Insured by MBIA).......................... 360,325
1,305,000 Oakland County Economic Development Corp., Boardwalk
Shopping Center, 4.38%, 1/1/09, Mandatory Put,
7/1/03 @ 100, (LOC: Banc One)....................... 1,305,000
1,000,000 Oakland County Economic Development Corp., Sugartree
Shopping Center, 4.38%, 1/1/14, Mandatory Put,
7/1/03 @ 100, (LOC: Banc One)....................... 1,000,000
2,000,000 Oakland County Michigan Development Corp, 6.38%,
11/1/14, Prerefunded 11/1/04 @100................... 2,119,999
1,000,000 Oakland Washtenaw County Community College, 6.65%,
5/1/11, Prerefunded 5/1/02 @ 102.................... 1,052,500
100,000 Ottawa County Michigan Sewage Disposal, 4.30%,
6/1/06.............................................. 95,375
735,000 Reeths-Puffer Schools, GO, 6.75%, 5/1/01 (Insured by
FGIC)............................................... 749,288
750,000 Reeths-Puffer Schools, GO, 6.25%, 5/1/02 (Insured by
FGIC)............................................... 770,625
1,000,000 Rochester Michigan Community School District, 4.80%,
5/1/02, Q-SBLF...................................... 1,002,500
4,000,000 University of Michigan University Revenue, Series A,
4.55%*, 7/3/00...................................... 3,999,999
2,035,000 Walled Lake Consolidated School District, GO, 4.70%,
5/1/01.............................................. 2,041,370
2,235,000 Walled Lake Consolidated School District, GO, 4.80%,
5/1/02.............................................. 2,240,587
</TABLE>
Continued
89
<PAGE>
Michigan Municipal Bond Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------- ------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 1,025,000 Washtenaw Community College, GO, 4.70%, 4/1/03
(Insured by FGIC).................................. $ 1,023,719
1,000,000 Wyandotte Electric Revenue, 6.20%, 10/1/03 (Insured
by MBIA)........................................... 1,043,750
------------
Total Municipal Bonds.............................. 96,150,922
------------
INVESTMENT COMPANIES (0.6%):
12,274 Dreyfus Tax Exempt Money Market Fund............... 12,274
571,996 Federated Tax Exempt Money Market Fund............. 571,995
------------
Total Investment Companies......................... 584,269
------------
Total Investments (Cost $96,729,419) (a) -- 101.3%.............. 96,735,191
Liabilities in excess of other assets -- (1.3)%................. (1,282,617)
------------
Total Net Assets -- 100.0%...................................... $ 95,452,574
============
</TABLE>
-------
Percentages indicated are based on net assets of $95,452,574.
(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........................................... $ 726,826
Unrealized depreciation........................................... (721,054)
---------
Net unrealized appreciation....................................... $ 5,772
=========
</TABLE>
* Variable rate security. Rate presented represents rate in effect at June
30, 2000. Maturity date reflects next rate change date.
AMBAC -- AMBAC Indemnity Corp.
AMT -- Alternative Minimum Tax Paper
FGIC -- Financial Guaranty Insurance Corp.
FSA -- Financial Security Assurance
GO -- General Obligation
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
See Notes to Financial Statements.
90
<PAGE>
Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
CERTIFICATES OF DEPOSIT (5.1%):
Banking (5.1%):
$ 5,000,000 Bank of New York, 7.22%, 5/1/01..................... $ 5,000,000
5,000,000 First Union, 6.28%, 7/25/00......................... 5,000,000
5,000,000 First Union, 6.93%, 10/16/00........................ 5,000,000
5,000,000 First Union, 6.79%, 11/17/00........................ 5,000,000
5,000,000 First Union, 7.11%, 12/27/00........................ 5,000,000
5,000,000 Mellon Bank, 6.50%, 11/13/00........................ 5,000,000
5,000,000 Michigan National Corp, 6.88%, 4/6/01............... 5,002,620
------------
Total Certificates Of Deposit....................... 35,002,620
------------
COMMERCIAL PAPER (47.3%):
Automotive (11.0%):
5,000,000 Daimler Chrysler, 6.72%, 7/10/00.................... 4,991,600
5,000,000 Daimler Chrysler, 6.81%, 7/12/00.................... 4,989,596
5,000,000 Daimler Chrysler, 5.97%, 7/20/00.................... 4,984,246
5,000,000 Daimler Chrysler, 6.56%, 9/21/00.................... 4,925,289
5,000,000 Daimler Chrysler, 6.28%, 12/5/00.................... 4,863,061
15,000,000 Ford Motor Credit Co., 6.55%, 7/6/00................ 14,986,404
5,000,000 Ford Motor Credit Co., 5.98%, 7/12/00............... 4,990,864
5,000,000 Ford Motor Credit Co., 6.52%, 7/26/00............... 4,977,361
5,000,000 General Motors Acceptance Corp., 6.55%, 7/10/00..... 4,991,625
5,000,000 General Motors Acceptance Corp., 6.61%, 7/17/00..... 4,985,311
5,000,000 General Motors Acceptance Corp., 6.67%, 8/29/00..... 4,945,343
5,000,000 General Motors Acceptance Corp., 6.23%, 9/6/00...... 4,942,026
5,000,000 General Motors Acceptance Corp., 6.58%, 9/14/00..... 4,931,458
------------
74,504,184
------------
Banking (2.3%):
5,000,000 Dresdner Bank, 6.54%, 8/7/00........................ 4,966,391
5,000,000 Dresdner Bank, 6.67%, 9/1/00........................ 4,942,564
5,000,000 First Union Corp., 6.04%, 9/12/00................... 4,938,761
1,000,000 Mellon Bank Corp., 6.26%, 10/6/00................... 983,133
------------
15,830,849
------------
Chemicals -- Diversified (1.3%):
9,000,000 Dow Chemical, 6.90%, 7/3/00......................... 8,996,550
------------
Finance (4.2%):
8,000,000 General Electric Capital Corp., 6.60%, 7/12/00...... 7,983,867
5,000,000 General Electric Capital Corp., 6.70%, 7/17/00...... 4,985,111
5,000,000 General Electric Capital Corp., 6.09%, 10/13/00..... 4,912,033
5,000,000 General Electric Capital Corp., 6.06%, 11/3/00...... 4,894,792
6,000,000 General Electric Capital Corp., 6.18%, 12/18/00..... 5,824,900
------------
28,600,703
------------
Food -- Canned (2.9%):
5,000,000 H.J. Heinz Co., 6.51%, 7/5/00....................... 4,996,383
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
COMMERCIAL PAPER (continued)
Food -- Canned (continued)
$ 5,000,000 H.J. Heinz Co., 6.58%, 7/24/00...................... $ 4,978,981
5,000,000 H.J. Heinz Co., 6.52%, 7/31/00...................... 4,972,833
5,000,000 H.J. Heinz Co., 6.53%, 8/2/00....................... 4,970,978
------------
19,919,175
------------
Food -- Confectionery (0.7%):
5,000,000 Nestle Capital Corp., 5.68%, 10/2/00................ 4,926,633
------------
Foreign Banking (8.4%):
4,000,000 Banque National de Paris, 6.58%,.................... 3,939,318
2,000,000 Commerzbank AG, 6.60%, 8/23/00...................... 1,980,567
4,250,000 Deutsche Bank AG, 6.05%, 8/1/00..................... 4,227,859
5,000,000 Rabobank Nederland, 6.51%, 7/5/00................... 4,996,383
4,250,000 Rabobank Nederland, 6.15%, 10/31/00................. 4,161,423
5,000,000 Toronto Dominion Bank, 5.38%, 7/18/00............... 4,986,046
20,000,000 UBS Financial Inc., 6.92%, 7/5/00................... 19,984,716
5,000,000 UBS Financial Inc., 5.81%, 7/10/00.................. 4,992,738
8,000,000 UBS Financial Inc., 5.92%, 8/7/00................... 7,951,324
------------
57,220,374
------------
Industrial Goods & Services (2.5%):
5,000,000 Dupont, 6.10%, 7/6/00............................... 4,995,764
5,000,000 Dupont, 6.57%, 7/21/00.............................. 4,981,750
2,000,000 Dupont, 6.50%, 7/28/00.............................. 1,990,250
5,000,000 Dupont, 6.62%, 9/20/00.............................. 4,925,525
------------
16,893,289
------------
Medical -- Drugs (6.1%):
7,640,000 Merck & Co. Inc., 6.85%, 7/6/00..................... 7,632,731
10,000,000 Merck & Co. Inc., 6.80%, 7/7/00..................... 9,988,666
4,250,000 Schering-Plough Corp., 6.11%, 7/12/00............... 4,242,065
5,000,000 Schering-Plough Corp., 6.58%, 8/29/00............... 4,946,081
5,000,000 Schering-Plough Corp., 6.19%, 9/6/00................ 4,942,399
5,000,000 Schering-Plough Corp., 6.21%, 9/19/00............... 4,931,000
5,300,000 Schering-Plough Corp., 5.98%, 7/25/00............... 5,278,871
------------
41,961,813
------------
Multi-Media (3.6%):
5,000,000 McGraw Hill, 6.12%, 7/18/00......................... 4,985,550
5,000,000 McGraw Hill, 6.57%, 7/20/00......................... 4,982,663
5,000,000 McGraw Hill, 6.69%, 8/2/00.......................... 4,970,622
5,000,000 McGraw Hill, 6.53%, 8/23/00......................... 4,951,932
5,000,000 McGraw Hill, 6.57%, 9/21/00......................... 4,925,175
------------
24,815,942
------------
Publishing -- Newspapers (0.7%):
5,000,000 Gannett, Co., 6.48%, 7/13/00........................ 4,989,200
------------
Utilities -- Telephone (3.6%):
5,000,000 BellSouth Corp., 6.27%, 7/11/00..................... 4,991,291
5,000,000 BellSouth Corp., 6.53%, 7/13/00..................... 4,989,117
5,000,000 BellSouth Corp., 6.50%, 7/19/00..................... 4,983,750
5,000,000 BellSouth Corp., 6.60%, 8/11/00..................... 4,962,417
5,000,000 BellSouth Corp., 6.54%, 8/23/00..................... 4,951,858
------------
24,878,433
------------
Total Commercial Paper.............................. 323,537,145
------------
</TABLE>
Continued
91
<PAGE>
Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
CORPORATE NOTES & BONDS (10.3%):
Automotive (0.7%):
$ 4,500,000 Daimler Chrysler, 5.88%, 2/7/01.................... $ 4,479,663
------------
Banking & Finance (0.7%):
5,000,000 Bayerische Landesbank -- NY, 6.38%, 8/31/00........ 4,998,915
------------
Building -- Residential/Commercial (0.6%):
1,000,000 PZT Development, 6.69%*, 4/5/00, (LOC: Fifth Third
Bank).............................................. 1,000,000
2,850,000 Zanetos Partnership Project,
6.76%*, 7/5/00, (LOC: National City Bank).......... 2,850,000
------------
3,850,000
------------
Electrical & Electronic (1.5%):
10,170,000 Aerovox Inc., 6.85%*, 7/5/00, (LOC: Keybank)....... 10,170,000
------------
Finance (0.7%):
5,000,000 MBE Investment Co., 6.85%*, 7/5/00, (LOC: National
Australia Bank).................................... 5,000,000
------------
Hotels & Lodging (0.3%):
2,250,000 Central Michigan Inns, 6.72%*, 7/5/00, (LOC:
Michigan National Bank)............................ 2,250,000
------------
Machinery -- Construction/Mining (0.3%):
2,200,000 Concord Group Ltd., 6.76%*, 7/5/00, (LOC: National
City Bank)......................................... 2,200,000
------------
Manufacturing industries, n.e.c. (1.9%):
1,375,000 FRW Ltd., 6.85%*, 7/5/00, (LOC: Keybank)........... 1,375,000
8,155,000 Jackson 2000, 6.85%*, 7/5/00, (LOC: Keybank)....... 8,155,000
2,710,000 Moose River Lumber, 6.85%*, 7/5/00, (LOC:
Keybank)........................................... 2,710,000
------------
12,240,000
------------
Paints & Related Products (0.6%):
4,000,000 PCI Paper Conversions Inc., 6.85%*, 7/5/00, (LOC:
Keybank)........................................... 4,000,000
------------
Publishing -- Newspapers (0.2%):
1,675,000 Thompson Newspapers, Inc., 6.85%*, 7/5/00, (LOC:
Keybank)........................................... 1,675,000
------------
Real Estate (0.4%):
2,420,000 Bayloff Properties L.L.C., 6.76%*, 7/5/00, (LOC:
National City Bank)................................ 2,420,000
------------
Steel -- Producers (0.9%):
6,000,000 Bing Steel Mgmt, Inc., 6.77%*, 7/6/00, (LOC:
Michigan National Bank)............................ 6,000,000
------------
Tools -- Hand Held (1.1%):
7,800,000 SGS Tool Co., 6.76%*, 7/6/00, (LOC: Bank One)...... 7,800,000
------------
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
CORPORATE NOTES & BONDS (continued):
Utilities -- Waste Disposal (0.4%):
$ 3,000,000 Texas Disposal Systems, 6.73%*, 7/5/00, (LOC: Bank
of America)........................................ $ 3,000,000
------------
Total Corporate Notes & Bonds...................... 70,083,578
------------
DEMAND NOTES (22.9%):
Finance (5.7%):
5,853,000 Capital One Funding Corp.,
6.70%*, 7/6/00, (LOC: Bank One).................... 5,853,000
1,564,000 Capital One Funding Corp.,
6.70%*, 7/6/00, (LOC: Bank One).................... 1,564,000
1,600,000 Capital One Funding Corp.,
6.70%*, 7/6/00, (LOC: Bank One).................... 1,600,000
6,344,000 Capital One Funding Corp.,
6.70%*, 7/6/00, (LOC: Bank One).................... 6,344,000
1,328,000 Capital One Funding Corp.,
6.70%*, 7/6/00, (LOC: Bank One).................... 1,328,000
4,145,000 Labelle Capital Funding L.L.C.,
6.74%*, 7/6/00 (LOC: National City Bank)........... 4,145,000
3,740,000 Macroe Properties, Inc., 6.77%*, 7/6/00 (LOC:
Huntington Bank)................................... 3,740,000
9,210,000 PRD Finance L.L.C., 6.73%*, 7/6/00 (LOC: National
City Bank)......................................... 9,210,000
5,000,000 Sheperd Capital L.L.C., 6.77%*, 7/6/00 (LOC:
Comerica Bank)..................................... 5,000,000
------------
38,784,000
------------
Health Care (4.1%):
3,930,000 Adena Health System, 6.85%*, 7/5/00, (LOC: Fifth
Third Bank)........................................ 3,930,000
8,000,000 American Healthcare Funding L.L.C., 6.70%*, 7/6/00,
(LOC: ABN/AMRO).................................... 8,000,000
3,750,000 Excel Health Services, Inc., 6.85%*, 7/6/00, (LOC:
Fifth Third Bank).................................. 3,750,000
3,250,000 Idaho Associates L.L.C., 6.70%*, 7/6/00 (LOC:
ABN/AMRO).......................................... 3,250,000
2,420,000 Reynolds Road Fitness Center, Inc.,
6.69%*, 7/6/00 (LOC: Fifth Third Bank)............. 2,420,000
5,085,000 Reynolds Road Fitness Center, Inc.,
6.69%*, 7/6/00 (LOC: Fifth Third Bank)............. 5,085,000
1,725,000 Riverview Medical Office Building,
6.76%*, 7/6/00 (LOC: National City Bank)........... 1,725,000
------------
28,160,000
------------
Manufacturing -- Capital Goods (2.9%):
8,420,000 Buckeye Corrugated, Inc., 6.85%*, 7/5/00 (LOC:
Keybank)........................................... 8,420,000
3,100,000 City of Cloquet, Minnesota Taxable Industrial Bond,
6.70%*, 7/5/00 (LOC: Wachovia), Series 1996B....... 3,100,000
4,260,000 Jackson Tube Service, Inc., 6.85%*, 7/6/00, (LOC:
Fifth Third Bank).................................. 4,260,000
1,425,000 Laird's Auto Glass & Trim, Inc., 6.76%*, 7/6/00
(LOC: National Australia Bank)..................... 1,425,000
2,290,000 White Mountain Imaging, 6.85%*, 7/5/00 (LOC:
Keybank)........................................... 2,290,000
------------
19,495,000
------------
</TABLE>
Continued
92
<PAGE>
Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
DEMAND NOTES (continued)
Real Estate (8.3%):
$ 3,915,000 Chesterwood Village Realty,
6.69%*, 7/6/00 (LOC: Fifth Third Bank)........ $ 3,915,000
6,290,000 GTB Properties L.L.C., 6.77%*, 7/5/00 (LOC:
National Australia Bank)...................... 6,290,000
6,060,000 Harry W. Albright, Jr., 6.77%*, 7/6/00, (LOC:
National Australia Bank)...................... 6,060,000
3,300,000 HWP Co., Ltd. Project, 6.76%*, 7/6/00 (LOC:
National City Bank Cleveland, Ohio)........... 3,300,000
2,000,000 JW Harris Co., Inc., 6.69%*, 7/6/00 (LOC:
Fifth Third Bank)............................. 2,000,000
11,650,000 Pittsburgh Technical Institute,
6.76%*, 7/5/00 (LOC: National City Bank)...... 11,650,000
2,535,000 Rumpf Development Ltd.,
6.85%*, 7/5/00 (LOC: Keybank)................. 2,535,000
14,000,000 Sharonsville Realty Enterprises,
6.70%*, 7/6/00, (LOC: Bank One)............... 14,000,000
2,500,000 Town of Caledonia, Wisconsin,
6.70%*, 7/5/00 (LOC: Banc One Capital)........ 2,500,000
4,875,000 Zeigler Realty L.L.C, 6.77%*, 7/6/00 (LOC:
Natioan City Bank)............................ 4,875,000
-------------
57,125,000
-------------
Retail -- General Merchandise (0.7%):
4,500,000 Royal Town Center L.L.C. Project,
6.85%*, 7/5/00 (LOC: Comerica Bank)........... 4,500,000
-------------
Services (1.2%):
8,100,000 Mr. K Enterprises, 6.77%*, 7/5/00, (LOC:
National Australia Bank)...................... 8,100,000
-------------
Total Demand Notes............................ 156,164,000
-------------
MUNICIPAL BOND -- TAXABLE (1.8%):
Health Care (1.2%):
8,070,000 Lee County FL Industrial Development, Series
B, 6.69%*, 7/6/00, (LOC: Fifth-Third Bank).... 8,070,000
-------------
Manufacturing -- Consumer Goods (0.6%):
4,000,000 Polk County FL, 6.73%*, 7/6/00, (LOC: Bank of
America)...................................... 4,000,000
-------------
Total Municipal Bond -- Taxable............... 12,070,000
-------------
MUNICIPAL BONDS (2.6%):
Airports Flying Fields & Airport Terminal Services (0.4%):
3,000,000 Atlanta Georgia Airport,
5.50%*, 10/3/00............................... 2,991,642
-------------
Facilities Support Services (0.2%):
1,500,000 Approach Partnership NY, 6.85%*, 7/5/00, (LOC:
Keybank)...................................... 1,500,000
-------------
Medical -- Hospital (0.5%):
1,775,000 CFA Medical Center, 6.85%*, 7/5/00, (LOC:
Keybank)...................................... 1,775,000
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Medical -- Hospital (continued)
$ 1,910,000 Genesee Memorial Hospital,
6.85%*, 7/5/00..................................... $ 1,910,000
------------
3,685,000
------------
Urban and Community Development (1.5%):
2,040,000 Indianapolis IN, Economic Development, 6.85%*,
7/5/00, (LOC: Keybank)............................. 2,040,000
2,000,000 Michigan State Strategic Fund Carpenter Ltd.,
6.70%*, 7/5/00, *(LOC: ABN/AMRO)................... 2,000,000
1,650,000 Michigan State Strategic Fund Waterland, 6.77%*,
7/5/00, (LOC: Michigan National Bank).............. 1,650,000
4,175,000 Oswego County NY Development Agency, 6.85%*,
7/6/00, (LOC: Keybank)............................. 4,175,000
------------
9,865,000
------------
Total Municipal Bonds.............................. 18,041,642
------------
YANKEE CERTIFICATES OF DEPOSIT (7.0%):
Foreign Banking (7.0%):
4,250,000 Bank of Nova Scotia, 6.11%, 7/5/00................. 4,250,000
5,000,000 Bank of Nova Scotia, 6.71%, 2/22/01................ 4,998,849
4,250,000 Bayerische Hypo-Und Verensbank AG, 6.77%, 2/22/01.. 4,250,844
5,000,000 Bayerische Landesbank GZ,
5.82%, 8/3/00...................................... 4,999,849
5,000,000 Bayerische Landesbank GZ,
6.68%, 3/7/01...................................... 4,997,371
5,000,000 Commerzbank AG, 6.76%, 3/27/01, Ycd................ 4,996,189
4,250,000 Credit Suisse, 5.72%, 7/3/00....................... 4,249,859
5,000,000 Robobank Nederland, 6.18%, 8/1/00.................. 4,999,587
5,000,000 Robobank Nederland, 7.12%, 6/26/01................. 5,000,000
5,000,000 Societe Generale, 6.56%, 1/16/01................... 4,985,323
------------
Total Yankee Certificates of Deposit............... 47,727,871
------------
INVESTMENT COMPANIES (3.6%):
1,561,414 Dreyfus Cash Management Money Market Fund.......... 1,561,414
23,055,537 Federated Prime Value Obligations Money Market
Fund............................................... 23,055,537
------------
Total Investment Companies......................... 24,616,951
------------
Total Investments (Cost $687,243,807) (a) -- 100.6%............. 687,243,807
Liabilities in excess of other assets -- (0.6)%................. (4,117,078)
------------
Total Net Assets -- 100.0%...................................... $683,126,729
============
</TABLE>
-------
Percentages indicated are based on net assets of $683,126,729.
(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, 2000. Maturity date reflects next rate change date.
AG -- Aktiengesellschaft (German Stock Company)
LOC -- Letter of Credit
PLC -- Public Limited Company
See Notes to Financial Statements.
93
<PAGE>
Government Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (88.2%):
Fannie Mae (37.6%):
$ 5,000,000 5.79%**, 7/7/00..................................... $ 4,995,408
5,000,000 5.97%**, 7/13/00.................................... 4,990,333
5,000,000 6.17%**, 7/20/00.................................... 4,983,942
5,000,000 6.05%**, 7/27/00.................................... 4,978,767
10,000,000 6.06%**, 8/3/00..................................... 9,943,168
5,000,000 6.08%**, 8/10/00.................................... 4,967,111
5,000,000 6.13%**, 8/31/00.................................... 4,949,590
5,000,000 6.57%**, 9/7/00..................................... 4,938,989
5,000,000 6.23%**, 9/8/00..................................... 4,942,021
5,000,000 6.55%**, 9/14/00.................................... 4,932,917
5,000,000 6.25%**, 9/21/00.................................... 4,930,983
5,000,000 6.34%**, 10/5/00.................................... 4,918,133
5,000,000 6.34%**, 10/12/00................................... 4,912,092
7,254,000 6.37%**, 10/19/00................................... 7,116,553
5,000,000 6.77%**, 10/26/00................................... 4,892,913
5,000,000 6.86%**, 11/22/00................................... 4,867,400
5,000,000 6.89%**, 11/30/00................................... 4,859,400
4,000,000 6.95%**, 1/16/01.................................... 3,966,898
5,000,000 6.38%**, 2/2/01..................................... 4,998,997
------------
100,085,615
------------
Federal Farm Credit Bank (1.9%):
5,000,000 6.05%, 7/3/00....................................... 5,000,000
------------
Federal Home Loan Bank (20.4%):
5,000,000 6.48%**, 7/3/00..................................... 4,998,200
5,000,000 6.53%**, 7/5/00..................................... 4,996,378
5,000,000 6.47%**, 7/6/00..................................... 4,995,514
5,000,000 6.43%**, 7/14/00.................................... 4,988,444
5,000,000 6.47%**, 7/19/00.................................... 4,983,875
5,000,000 6.50%**, 8/25/00.................................... 4,950,958
5,000,000 6.29%**, 8/30/00.................................... 4,948,917
5,000,000 6.59%**, 9/15/00.................................... 4,931,494
5,000,000 6.33%**, 9/27/00.................................... 4,925,078
5,000,000 6.14%*, 7/5/00...................................... 5,000,282
5,000,000 6.71%**, 12/22/00................................... 4,843,158
------------
54,562,298
------------
Freddie Mac (28.3%):
20,000,000 6.57%**, 7/3/00..................................... 19,992,700
10,715,000 6.46%**, 7/5/00..................................... 10,707,365
5,000,000 6.47%**, 7/11/00.................................... 4,991,028
5,000,000 6.15%**, 7/13/00.................................... 4,989,900
10,000,000 6.50%**, 7/18/00.................................... 9,969,530
5,000,000 6.52%**, 7/25/00.................................... 4,978,500
5,000,000 6.11%**, 8/1/00..................................... 4,974,317
5,160,000 6.48%**, 8/10/00.................................... 5,123,192
5,000,000 6.11%**, 8/17/00.................................... 4,961,258
5,000,000 6.58%**, 9/21/00.................................... 4,926,257
------------
75,614,047
------------
Total U.S. Government Agency Obligations............ 235,261,960
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
REPURCHASE AGREEMENTS (9.7%):
Repurchase Agreement (9.7%):
$26,000,000 Morgan Stanley & Co. Inc., 6.70%, dated 6/30/00,
due 7/3/00 with a maturity value of $26,014,517
(Collateralized by $26,000,000 Freddie Mac, 5.00%,
1/15/04, market value of $27,670,000).............. $ 26,000,000
------------
Total Repurchase Agreements........................ 26,000,000
------------
INVESTMENT COMPANIES (2.5%):
6,772,276 Federated Treasury Money Market.................... 6,772,276
------------
Total Investment Companies......................... 6,772,276
------------
Total Investments (Cost $268,034,236) (a) -- 100.4%............. 268,034,236
Liabilities in excess of other assets -- (0.4)%................. (976,518)
------------
Total Net Assets -- 100.0%...................................... $267,057,718
============
</TABLE>
-------
Percentages indicated are based on net assets of $267,057,718.
(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, 2000. Maturity date reflects next rate change date.
** Effective yield at purchase.
See Notes to Financial Statements.
94
<PAGE>
Michigan Municipal Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (86.5%):
Michigan (81.2%):
$ 3,000,000 City of Dearborn Economic Development Corp., Henry
Ford Village, 4.95%*, 7/6/00, (LOC: Comerica Bank).. $ 3,000,000
870,000 Clinton Township Economic Development Corp., Pointe
Village Square, (AMT), 4.35%*, 8/1/00, (LOC:
National City)...................................... 870,000
500,000 Detroit Michigan Water Supply System, 6.80%, 7/1/00,
(Insured by FGIC)................................... 500,000
1,000,000 Detroit Michigan Water Supply System, Series A,
5.00%, 7/1/00....................................... 1,000,000
2,675,000 Detroit Michigan, GO, 8.00%, 4/1/11, Prerefunded
4/1/01 @102......................................... 2,799,092
525,000 Farmington Hills Michigan Education, Marketing
Displays, (AMT), 4.40%*, 9/1/00, (LOC: Comerica
Bank)............................................... 525,000
330,000 Farmington Hills, Economic Development Corp.,
Brookfield, 5.05%*, 7/6/00, (LOC: Comerica Bank).... 330,000
3,000,000 Genesee County Economic Development Corp., Rawcar
Group, (AMT), 4.90%*, 7/6/00, (LOC: National City).. 3,000,000
7,000,000 Genesee County Economic Development Corp., Rue
Properties, (AMT), 4.90%*, 7/6/00, (LOC:
Nationsbank)........................................ 7,000,000
520,000 Grand Rapids Michigan, 4.00%, 10/1/00............... 520,000
5,300,000 Grand Rapids Michigan Industrial Development, Rowe,
4.75%*, 7/5/00, (LOC: Chase Manhattan Bank)......... 5,300,000
2,500,000 Jackson Michigan Public Schools State Aid Notes,
5.00%, 7/3/01, (LOC: Comerica Bank)................. 2,509,550
800,000 Kent County Michigan Board of County Road, 4.25%,
8/1/00.............................................. 800,558
565,000 Lansing Michigan Economic Development Corp., LGH
Office Building, (AMT), 4.00%*, 12/1/00, (LOC:
Comerica Bank)...................................... 565,000
1,675,000 Leelanau County Economic Development Corp., American
Mutual Insurance Co., 5.00%*, 12/15/00, (LOC:
National City)...................................... 1,675,000
3,720,000 Lenawee County Economic Development Corp., Rima
Manufacturing, Co. Project, (AMT), 4.95%*, 7/5/00,
(LOC: Keybank)...................................... 3,720,000
335,000 Livonia County Economic Development Corp., American
Community Mutual Insurance Co., 4.50%*, 11/15/00,
(LOC: National City)................................ 335,000
1,300,000 Marquette County Economic Development Corp., Pioneer
Labs, Inc., (AMT), 4.87%*, 7/5/00, (LOC: Banc One).. 1,300,000
1,800,000 Meridian Michigan Economic Development Corp., Hannah
Technology, 4.50%*, 7/14/00, (LOC: Comerica Bank)... 1,800,000
2,000,000 Michigan Hospital Financial Authority, Royal Oak
William Beaumont Hospital, 6.75%, 1/1/11,
Prerefunded 1/1/01 @ 102............................ 2,065,512
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 5,000,000 Michigan Muni Bond Authority, Series B-1, 4.25%,
8/25/00............................................ $ 5,004,709
5,000,000 Michigan Municipal Bond Authority, 4.25%, 8/25/00,
(LOC: Morgan Guaranty Trust)....................... 5,004,927
1,000,000 Michigan Municipal Bond Authority, 5.00%, 7/2/01,
(LOC: JP Morgan)................................... 1,006,210
3,000,000 Michigan Municipal Bond Authority , Series A-1,
4.75%, 4/26/01..................................... 3,011,779
435,000 Michigan Municipal Bond Authority, Series A-1,
4.45%, 5/1/01...................................... 435,000
2,000,000 Michigan State Building Authority, 5.00%, 10/1/00,
(Insured by Ambac)................................. 2,005,607
875,000 Michigan State Building Authority, 6.00%, 10/1/00.. 878,696
2,000,000 Michigan State Hospital Financial Authority, Mount
Clemons, 4.95%*, 7/6/00, (LOC: Comerica)........... 2,000,000
2,120,000 Michigan State Hospital Financial Authority,
Sisters of Mercy, 7.00%, 2/15/21, Prerefunded
2/15/01 @ 102...................................... 2,196,472
3,000,000 Michigan State Housing Development Authority,
Canton Club East, (AMT), 4.85%*, 7/5/00, (LOC:
Keybank)........................................... 3,000,000
1,000,000 Michigan State Housing Development Authority,
Rental Housing Revenue, (AMT), 5.15%, 10/1/00,
(Insured by MBIA).................................. 1,002,617
1,395,000 Michigan State Strategic Fund, Advanced Tooling,
(AMT), 4.80%*, 7/6/00, (LOC: Banc One)............. 1,395,000
2,215,000 Michigan State Strategic Fund, Atmosphere
Annealing, (AMT), 4.95%*, 7/6/00, (LOC: National
City).............................................. 2,215,000
1,400,000 Michigan State Strategic Fund, B & C Leasing,
(AMT), 4.90%*, 7/6/00, (LOC: Bank of America)...... 1,400,000
1,160,000 Michigan State Strategic Fund, B.K. Hardwoods,
(AMT), 4.80%*, 7/6/00, (LOC: Huntington Bank)...... 1,160,000
3,570,000 Michigan State Strategic Fund, Banks Hardwoods,
Inc., (AMT), 4.95%*, 7/6/00, (LOC: Bank One)....... 3,570,000
800,000 Michigan State Strategic Fund, Baron Drawn Steel,
(AMT), 4.95%*, 7/6/00, (LOC: National City)........ 800,000
2,680,000 Michigan State Strategic Fund, Biewer of Lansing,
(AMT), 4.95%*, 7/6/00, (LOC: National Australia)... 2,680,000
3,000,000 Michigan State Strategic Fund, Biff, Inc., (AMT),
4.87%*, 7/5/00, (LOC: National Australia).......... 3,000,000
3,600,000 Michigan State Strategic Fund, Brazing Concepts
Co., (AMT), 4.95%*, 7/5/00, (LOC: Banc One)........ 3,600,000
1,050,000 Michigan State Strategic Fund, C-1, (AMT), 5.07%*,
7/5/00, (LOC: Comerica Bank)....................... 1,050,000
</TABLE>
Continued
95
<PAGE>
Michigan Municipal Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 1,000,000 Michigan State Strategic Fund, C-Tec, Inc., (AMT),
4.90%*, 7/5/00, (LOC: SunTrust Bank)............... $ 1,000,000
2,500,000 Michigan State Strategic Fund, Cincinnati Milacron,
(AMT), 4.85%*, 7/6/00, (LOC: PNC Bank)............. 2,500,000
2,275,000 Michigan State Strategic Fund, Cyberplast, (AMT),
4.85%*, 7/5/00, (LOC: Banc One).................... 2,275,000
885,000 Michigan State Strategic Fund, Dickinson Press,
Inc., (AMT), 4.80%*, 7/6/00, (LOC: Huntington
Bank).............................................. 885,000
2,200,000 Michigan State Strategic Fund, Dixie Cut Stone,
(AMT), 4.87%*, 7/5/00, (LOC: National Australia)... 2,200,000
2,500,000 Michigan State Strategic Fund, Donnelly Corp.,
(AMT), 4.95%*, 7/5/00, (LOC: Dresdner Bank)........ 2,500,000
2,500,000 Michigan State Strategic Fund, Donnelly Corp.,
Series B, (AMT), 4.50%*, 10/1/00, (LOC: Dresdner
Bank).............................................. 2,500,000
3,800,000 Michigan State Strategic Fund, Dow Chemical Co.,
4.75%*, 7/3/00..................................... 3,800,000
200,000 Michigan State Strategic Fund, Dow Chemical Co.,
(AMT), 4.60%*, 7/3/00.............................. 200,000
2,850,000 Michigan State Strategic Fund, E & L Meat, (AMT),
4.87%*, 7/5/00, (LOC: National Australia).......... 2,850,000
1,065,000 Michigan State Strategic Fund, Environmental Powder
Co., (AMT), 4.80%*, 7/6/00, (LOC: National
Australia)......................................... 1,065,000
1,000,000 Michigan State Strategic Fund, Equad, (AMT),
4.95%*, 7/6/00, (LOC: National City)............... 1,000,000
1,375,000 Michigan State Strategic Fund, Fastco Industries,
(AMT), 4.80%, 7/6/00, (LOC: Firstar Bank).......... 1,375,000
1,000,000 Michigan State Strategic Fund, Frederick Wolfgang,
(AMT), 4.80%*, 7/6/00, (LOC: Firstar Bank)......... 1,000,000
1,300,000 Michigan State Strategic Fund, Gollin Block &
Supply Co., (AMT), 4.87%*, 7/5/00, (LOC: Northern
Trust)............................................. 1,299,990
1,510,000 Michigan State Strategic Fund, Hamilton Industrial
Products, Inc., (AMT), 4.80%*, 7/6/00, (LOC:
National Australia)................................ 1,510,000
1,000,000 Michigan State Strategic Fund, Harbor Industries,
(AMT), 4.87%*, 7/5/00, (LOC: National Australia)... 1,000,000
1,430,000 Michigan State Strategic Fund, I.V.C. Industrial
Coatings, Inc., (AMT), 4.95%*, 7/6/00, (LOC: Bank
One)............................................... 1,430,000
4,420,000 Michigan State Strategic Fund, JB Laboratories,
Inc., (AMT), 4.80%*, 7/6/00, (LOC: Huntington
Bank).............................................. 4,420,000
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 3,300,000 Michigan State Strategic Fund, Jedco, Inc., 4.80%*,
7/6/00, (LOC: Banc One)............................. $ 3,300,000
1,130,000 Michigan State Strategic Fund, John A. Biewer Co.,
(AMT), 4.95%*, 9/1/00, (LOC: National Australia
Bank)............................................... 1,130,000
1,000,000 Michigan State Strategic Fund, K & K Management,
(AMT), 4.97%*, 7/6/00, (LOC: Huntington Bank)....... 1,000,000
535,000 Michigan State Strategic Fund, Kay Screen Printing,
(AMT), 5.15%*, 7/6/00, (LOC: Comerica Bank)......... 535,000
505,000 Michigan State Strategic Fund, Kazoo, Inc., (AMT),
4.50%*, 9/15/00, (LOC: National City)............... 505,000
3,170,000 Michigan State Strategic Fund, Kerkstra Precast,
(AMT), 4.80%*, 7/6/00, (LOC: Huntington Bank)....... 3,170,000
1,255,000 Michigan State Strategic Fund, Kerkstra, (AMT),
4.80%*, 7/6/00, (LOC: Huntington Bank).............. 1,255,000
1,400,000 Michigan State Strategic Fund, Kumdinger, (AMT),
4.95%*, 7/5/00, (LOC: Bank One)..................... 1,400,000
555,000 Michigan State Strategic Fund, LRV Enterprises, LLC,
(AMT), 4.80%*, 7/6/00, (LOC: National City)......... 555,000
200,000 Michigan State Strategic Fund, Martin Luther,
4.95%*, 7/5/00, (LOC: Banc One)..................... 200,000
3,500,000 Michigan State Strategic Fund, Merrill Group, (AMT),
4.95%*, 7/6/00, (LOC: National City)................ 3,500,000
1,025,000 Michigan State Strategic Fund, Midbrook Products,
Inc., (AMT), 4.80%*, 7/6/00, (LOC: Comerica Bank)... 1,025,000
4,000,000 Michigan State Strategic Fund, Middleville Tool &
Die, (AMT), 4.95%*, 7/5/00, (LOC: Banc One)......... 4,000,000
1,215,000 Michigan State Strategic Fund, Molmec, Inc., (AMT),
4.95%*, 7/6/00, (LOC: Comerica Bank)................ 1,215,000
2,895,000 Michigan State Strategic Fund, Nicholas Plastics,
(AMT), 4.80%*, 7/6/00, (LOC: National City)......... 2,895,000
870,000 Michigan State Strategic Fund, Northern Pure Ice
Co., (AMT), 4.87%*, 7/5/00, (LOC: National
Australia).......................................... 870,000
1,540,000 Michigan State Strategic Fund, Omni Technical
Services, Inc., (AMT), 4.95%*, 7/6/00, (LOC:
National City)...................................... 1,540,000
970,000 Michigan State Strategic Fund, Patten Monument,
(AMT), 4.80%*, 7/6/00, (LOC: Huntington Bank)....... 970,000
3,300,000 Michigan State Strategic Fund, Peckman Vocational
Industries, 4.72%*, 7/5/00, (LOC: National
Australia).......................................... 3,300,000
</TABLE>
Continued
96
<PAGE>
Michigan Municipal Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 3,500,000 Michigan State Strategic Fund, PFG Enterprises,
(AMT), 4.97%*, 7/6/00, (LOC: Huntington Bank)...... $ 3,500,000
2,000,000 Michigan State Strategic Fund, Phipps Emmett
Association, (AMT), 4.87%*, 7/5/00, (LOC: National
Australia)......................................... 2,000,000
800,000 Michigan State Strategic Fund, Pilot Industries,
(AMT), 5.06%*, 7/6/00, (LOC: Bank of America)...... 800,000
1,020,000 Michigan State Strategic Fund, Plascore, Inc.,
4.80%*, 7/6/00, (LOC: Huntington Bank)............. 1,020,000
450,000 Michigan State Strategic Fund, Plascore, Inc.,
Series B-2, 5.07%*, 7/5/00, (LOC: Comerica Bank)... 450,000
780,000 Michigan State Strategic Fund, Plascore, Inc.,
(AMT), 4.80%*, 7/6/00, (LOC: Huntington Bank)...... 780,000
5,000,000 Michigan State Strategic Fund, Proto-Techniques,
(AMT), 4.95%*, 7/6/00, (LOC: Comerica Bank)........ 5,000,000
585,000 Michigan State Strategic Fund, Pyper Tool, (AMT),
4.80%*, 7/6/00, (LOC: Huntington Bank)............. 585,000
155,000 Michigan State Strategic Fund, Sarbeth, (AMT),
5.07%*, 7/5/00, (LOC: Comerica Bank)............... 155,000
2,170,000 Michigan State Strategic Fund, SFI Acquisition,
(AMT), 4.95%*, 7/5/00, (LOC: ABN/Amro)............. 2,170,000
4,500,000 Michigan State Strategic Fund, Stegner East
Investments, LLC, (AMT), 4.95%*, 7/5/00, (LOC:
Comerica Bank)..................................... 4,500,000
785,000 Michigan State Strategic Fund, Stephenson Land,
(AMT), 4.80%*, 7/6/00, (LOC: Comerica Bank)........ 785,000
1,880,000 Michigan State Strategic Fund, Sunrise Windows
Ltd., (AMT), 4.95%*, 7/5/00, (LOC: Keybank)........ 1,880,000
1,000,000 Michigan State Strategic Fund, Thompson Family
Holdings, (AMT), 4.95%*, 7/6/00, (LOC: National
City).............................................. 1,000,000
390,000 Michigan State Strategic Fund, Tom Miller, Inc.,
(AMT), 4.80%*, 7/6/00, (LOC: First Union).......... 390,000
1,700,000 Michigan State Strategic Fund, Trio Tool Co.,
(AMT), 4.87%*, 7/5/00, (LOC: National Australia)... 1,700,000
1,425,000 Michigan State Strategic Fund, Ultra Tech Printing
Co., (AMT), 4.80%*, 7/6/00, (LOC: Firstar Bank).... 1,425,000
1,000,000 Michigan State Strategic Fund, Waterland, (AMT),
4.37%*, 7/5/00, (LOC: National Australia).......... 1,000,000
2,490,000 Michigan State Strategic Fund, Wayne Disposal,
(AMT), 4.85%*, 7/5/00, (LOC: Credit Suisse)........ 2,490,000
</TABLE>
<TABLE>
<CAPTION>
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Michigan (continued)
$ 920,000 Michigan State Strategic Fund, Wright K Technology,
Inc., Series 1997, (AMT), 4.95%*, 7/6/00, (LOC:
National City)..................................... $ 920,000
500,000 Michigan State Trunk Line, 4.15%, 10/1/00.......... 501,395
1,300,000 Michigan State Trunk Line, Series A,
4.10%, 11/15/00.................................... 1,305,398
1,000,000 Michigan State University, 3.86%,.................. 1,000,161
4,750,000 Midland County Economic Development, Dow Chemical
Co., Series A, (AMT), 4.60%*, 7/3/00............... 4,750,000
3,800,000 Midland County, Economic Development Corp., Dow
Chemical Co., Series B, 4.50%*, 7/3/00............. 3,800,000
375,000 Milan Michigan Area School District, GO, 4.40%,
5/1/01, Q-SBLF..................................... 375,000
1,500,000 Oakland County Economic Development Corp., Moody
Family, (AMT), 4.95%*, 7/5/00, (LOC: Banc One)..... 1,500,000
2,000,000 Oakland County Economic Development Corp., North
America, (AMT), 4.95%*, 7/5/00, (LOC: Comerica
Bank).............................................. 2,000,000
1,615,000 Oakland County Economic Development Corp., Orchard
Maple Project, 4.70%*, 11/15/00, (LOC: National
City).............................................. 1,615,000
245,000 Rochester Hills Economic Development Corp., BRG
Associates, 4.20%*, 12/1/00, (LOC: Comerica Bank).. 245,000
1,100,000 Scio Township Economic Development Corp., Daycroft
School Project, 4.72%*, 7/5/00, (LOC: National
Australia)......................................... 1,100,000
1,045,000 St. Clair Shores Michigan Education, Borman's,
Inc., (AMT), 4.40%*, 10/15/00, (LOC: National
Australia)......................................... 1,045,000
10,000,000 University of Michigan Hospital Revenue, 4.55%*,
7/3/00............................................. 10,000,000
1,470,000 Warren Economic Development Corp., CMX Corp.
Project, (AMT), 4.50%*, 9/15/00, (LOC: National
City).............................................. 1,470,000
1,240,000 Warren Economic Development Corp., Cross Country
Inn, (AMT), 4.60%*, 11/1/00, (LOC: Firstar Bank)... 1,240,000
495,000 Warren Economic Development Corp., Elias Brothers,
(AMT), 5.20%*, 12/1/00, (LOC: ABN/Amro)............ 495,000
1,460,000 Wayne County Michigan Transportation Fund, 3.80%*,
10/1/00............................................ 1,460,695
------------
219,658,368
------------
Puerto Rico (5.3%):
4,695,000 Puerto Rico Industrial Medical & Environmental
Pollution Control, Facilities Financing Authority,
Abbott Labs, 4.00%*, 3/1/01........................ 4,695,000
</TABLE>
Continued
97
<PAGE>
Michigan Municipal Money Market Fund
SCHEDULE OF PORTFOLIO INVESTMENTS
(continued)
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Shares or
Principal Security
Amount Description Market Value
--------- ----------- ------------
<C> <S> <C>
MUNICIPAL BONDS (continued)
Puerto Rico (continued)
$ 4,200,000 Puerto Rico Industrial Medical & Environmental
Pollution Control, Facilities Financing Authority,
Merck, 3.80%*, 12/1/00............................ $ 4,200,000
5,350,000 Puerto Rico Industrial Medical & Environmental
Pollution Control, Facilities Financing Authority,
Reynolds Metal, 3.50%*, 9/1/00, (LOC: ABN/Amro)... 5,350,000
------------
14,245,000
------------
Total Municipal Bonds............................. 233,903,368
------------
TAX FREE COMMERCIAL PAPER (13.8%):
Michigan (13.8%):
6,700,000 Delta County Economic Development Corp.,
Environmental Improvement Revenue, Mead Escanaba
Paper Co., Series A, 4.50%*, 8/15/00, (LOC: Morgan
Guaranty Trust)................................... 6,700,000
3,300,000 Delta County Economic Development Corp.,
Environmental Improvement Revenue, Mead Escanaba
Paper Co., Series A, 4.50%*, 8/15/00, (LOC: Morgan
Guaranty Trust)................................... 3,300,000
3,490,000 Delta County Economic Development Corp.,
Environmental Improvement Revenue, Mead Escanaba
Paper Co., Series B, 3.80%*, 8/3/00, (LOC: Union
Bank of Switzerland).............................. 3,490,000
5,810,000 Delta County Economic Development Corp.,
Environmental Improvement Revenue, Mead Escanaba
Paper Co., Series B, 3.80%*, 8/3/00, (LOC: Union
Bank of Switzerland).............................. 5,810,000
12,000,000 Michigan State Builders, 4.75%, 7/11/00, (LOC:
CIBC)............................................. 12,000,000
6,000,000 Michigan State Housing Development Authority,
(AMT), 4.25%, 7/6/00, (LOC: Helaba)............... 6,000,000
------------
Total Tax Free Commercial Paper................... 37,300,000
------------
INVESTMENT COMPANIES (0.7%):
36,176 Dreyfus Tax Exempt Money Market Fund.............. 36,176
1,724,026 Federated Tax Exempt Money Market Fund............ 1,724,026
------------
Total Investment Companies........................ 1,760,202
------------
Total Investments (Cost $272,963,570) (a) -- 101.0%............ 272,963,570
Liabilities in excess of other assets -- (1.0)%................ (2,643,454)
------------
Total Net Assets -- 100.0%..................................... $270,320,116
============
</TABLE>
-------
Percentages indicated are based on net assets of $270,320,116.
(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, 2000. Maturity date reflects next rate change date.
AMBAC -- AMBAC Indemnity Corp.
AMT -- Alternative Minimum Tax Paper
FGIC -- Financial Guaranty Insurance Corp.
LOC -- Letter of Credit
MBIA -- Municipal Bond Insurance Association
Q-SBLF -- Qualified School Board Lending Fund
See Notes to Financial Statements.
98
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Growth and Index Large Company Small Company International
Income Fund Equity Fund Growth Fund Growth Fund Growth Fund
----------- ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost........... $475,821,945 $476,333,115 $231,181,632 $601,916,708 $464,227,814
Net unrealized
appreciation/(depreciation).. 331,041,360 474,983,740 26,420,924 292,863,773 171,823,862
Repurchase agreements, at
cost......................... 8,055,516 11,539,154 -- 64,579,151 22,246,163
------------ ------------ ------------ ------------ ------------
Total Investments at value.... 814,918,821 962,856,009 257,602,556 959,359,632 658,297,839
Foreign currency at value (cost
$0; $0; $0; $0; $420,607,
respectively)................. -- -- -- -- 425,431
Interest and dividends
receivable.................... 763,770 912,297 238,807 1,109,783 1,812,568
Receivable for capital shares
issued........................ 667 66,345 -- 667 --
Receivable for investments
sold.......................... -- 360,000 -- 129,801 1,274,722
Tax reclaim receivable......... 41,844 35,449 -- -- 920,206
Net receivable for variation
margin on futures contracts... 75,750 40,400 128,775 119,875 --
Prepaid expenses and other
assets........................ 14,579 13,983 27,661 13,649 12,856
------------ ------------ ------------ ------------ ------------
Total Assets.................. 815,815,431 964,284,483 257,997,799 960,733,407 662,743,622
------------ ------------ ------------ ------------ ------------
LIABILITIES:
Payable for investments
purchased..................... -- 285,188 539,383 1,385,613 --
Payable for capital shares
redeemed...................... 10,511 8,188 -- -- 395
Payable for return of
collateral received for
securities on loan............ 15,389,952 22,893,935 -- 106,636,503 50,492,600
Foreign withholding taxes
payable....................... -- -- -- -- 78,772
Payable to adviser............. 462,658 193,167 145,059 481,274 377,786
Payable to administrator....... 7,825 6,129 2,503 8,370 5,975
Payable to distributor
(Investment Shares)........... 11,688 9,337 113 5,544 3,552
Accrued expenses and other
liabilities................... 59,918 67,395 24,300 64,645 96,188
------------ ------------ ------------ ------------ ------------
Total Liabilities............. 15,942,552 23,463,339 711,358 108,581,949 51,055,268
------------ ------------ ------------ ------------ ------------
NET ASSETS...................... $799,872,879 $940,821,144 $257,286,441 $852,151,458 $611,688,354
============ ============ ============ ============ ============
NET ASSETS consist of:
Paid-in capital................ $443,090,953 $470,000,577 $231,315,371 $536,843,362 $438,281,893
Accumulated undistributed
(distributions in excess of)
net investment income......... (163,890) 90,476 104,877 (166,325) (1,819,881)
Accumulated undistributed net
realized gains/(losses) on
investments, foreign currency
and futures contracts......... 26,123,756 (4,157,489) (209,396) 22,682,198 3,414,347
Net unrealized
appreciation/(depreciation) of
investments and translation of
assets and liabilities in
foreign currencies and
futures....................... 330,822,060 474,887,580 26,075,589 292,792,223 171,811,995
------------ ------------ ------------ ------------ ------------
TOTAL NET ASSETS................ $799,872,879 $940,821,144 $257,286,441 $852,151,458 $611,688,354
============ ============ ============ ============ ============
INSTITUTIONAL SHARES:
Net Assets..................... $745,457,930 $897,000,236 $256,709,700 $824,447,796 $593,882,194
Shares Outstanding............. 38,953,762 32,295,171 21,602,112 40,015,947 32,804,204
Net Asset Value, offering and
redemption price per share.... $ 19.14 $ 27.78 $ 11.88 $ 20.60 $ 18.10
============ ============ ============ ============ ============
INVESTMENT SHARES:
Net Assets..................... $ 54,414,949 $ 43,820,908 $ 576,741 $ 27,703,662 $ 17,806,160
Shares Outstanding............. 2,867,267 1,576,807 48,554 1,353,563 995,887
Net Asset Value, offering and
redemption price per share.... $ 18.98 $ 27.79 $ 11.88 $ 20.47 $ 17.88
============ ============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
99
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Intermediate Short Term
Income Fund Bond Fund Bond Fund
----------- ------------ ----------
<S> <C> <C> <C>
ASSETS:
Investments:
Investments at cost................ $328,678,189 $866,154,015 $164,261,011
Net unrealized
appreciation/(depreciation)....... (6,886,537) (19,781,885) (2,596,304)
Repurchase agreements, at cost..... 29,689,586 44,513,376 20,686,892
------------ ------------ ------------
Total investments at value......... 351,481,238 890,885,506 182,351,599
Interest and dividends receivable... 5,250,179 10,531,994 2,712,649
Prepaid expenses and other assets... 12,926 14,307 10,427
------------ ------------ ------------
Total Assets....................... 356,744,343 901,431,807 185,074,675
------------ ------------ ------------
LIABILITIES:
Payable for capital shares
redeemed........................... -- 41,737 19,172
Payable for investments purchased... -- 19,612,500 --
Payable for return of collateral
received for securities on loan.... 43,508,873 103,326,140 32,219,338
Payable to adviser.................. 153,076 348,483 62,520
Payable to administrator............ 3,061 7,597 1,495
Payable to distributor (Investment
Shares)............................ 1,995 2,269 480
Accrued expenses and other
liabilities........................ 27,884 149,805 18,829
------------ ------------ ------------
Total Liabilities.................. 43,694,889 123,488,531 32,321,834
------------ ------------ ------------
NET ASSETS........................... $313,049,454 $777,943,276 $152,752,841
============ ============ ============
NET ASSETS consist of:
Paid-in capital..................... $332,526,490 $827,688,415 $163,523,941
Accumulated undistributed
(distributions in excess of) net
investment income.................. 36,170 489,316 54,123
Accumulated undistributed net
realized gains/(losses) on
investment transactions............ (12,626,669) (30,452,570) (8,228,919)
Net unrealized
appreciation/(depreciation) of
investments........................ (6,886,537) (19,781,885) (2,596,304)
------------ ------------ ------------
TOTAL NET ASSETS..................... $313,049,454 $777,943,276 $152,752,841
============ ============ ============
INSTITUTIONAL SHARES:
Net Assets.......................... $303,439,244 $766,934,931 $148,873,616
Shares Outstanding.................. 32,616,483 81,906,220 15,728,912
Net Asset Value, offering and
redemption price per share......... $ 9.30 $ 9.36 $ 9.46
============ ============ ============
INVESTMENT SHARES:
Net Assets.......................... $ 9,610,210 $ 11,008,345 $ 3,879,225
Shares Outstanding.................. 1,034,437 1,172,826 410,279
Net Asset Value, offering and
redemption price per share......... $ 9.29 $ 9.39 $ 9.46
============ ============ ============
</TABLE>
See Notes to Financial Statements.
100
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Michigan
Tax-Free Intermediate Municipal
Income Fund Tax-Free Fund Bond Fund
----------- ------------- ---------
<S> <C> <C> <C>
ASSETS:
Investments:
Investments at cost................. $136,280,477 $269,436,006 $96,729,419
Net unrealized
appreciation/(depreciation)........ 2,972,335 6,515,999 5,772
------------ ------------ -----------
Total investments at value.......... 139,252,812 275,952,005 96,735,191
Interest and dividends receivable.... 1,697,572 4,217,835 1,034,006
Receivable for investments sold...... 616,689 -- --
Prepaid expenses and other assets.... 12,319 11,565 3,939
------------ ------------ -----------
Total Assets........................ 141,579,392 280,181,405 97,773,136
------------ ------------ -----------
LIABILITIES:
Payable for investments purchased.... 111,064 -- 2,270,935
Payable to adviser................... 63,258 115,182 35,348
Payable to administrator............. 1,388 2,751 938
Payable to distributor (Investment
Shares)............................. 336 559 433
Accrued expenses and other
liabilities......................... 17,513 23,658 12,908
------------ ------------ -----------
Total Liabilities................... 193,559 142,150 2,320,562
------------ ------------ -----------
NET ASSETS............................ $141,385,833 $280,039,255 $95,452,574
============ ============ ===========
NET ASSETS consist of:
Paid-in capital...................... $139,305,191 $274,702,529 $95,395,878
Accumulated undistributed
(distributions in excess of) net
investment income................... 15,162 103,704 43,728
Accumulated undistributed net
realized gains/(losses) on
investment transactions............. (906,855) (1,282,977) 7,196
Net unrealized
appreciation/(depreciation) of
investments......................... 2,972,335 6,515,999 5,772
------------ ------------ -----------
TOTAL NET ASSETS...................... $141,385,833 $280,039,255 $95,452,574
============ ============ ===========
INSTITUTIONAL SHARES:
Net Assets........................... $139,756,502 $277,318,033 $91,913,609
Shares Outstanding................... 13,740,480 26,902,591 9,248,626
Net Asset Value, offering and
redemption price per share.......... $ 10.17 $ 10.31 $ 9.94
============ ============ ===========
INVESTMENT SHARES:
Net Assets........................... $ 1,629,331 $ 2,721,222 $ 3,538,965
Shares Outstanding................... 159,814 263,885 356,540
Net Asset Value, offering and
redemption price per share.......... $ 10.20 $ 10.31 $ 9.93
============ ============ ===========
</TABLE>
See Notes to Financial Statements.
101
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Michigan
Government Municipal
Money Market Money Market Money Market
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments:
Investments at amortized cost...... $687,243,807 $242,034,236 $272,963,570
Repurchase agreements, at cost..... -- 26,000,000 --
------------ ------------ ------------
Total investments at amortized
cost.............................. 687,243,807 268,034,236 272,963,570
Interest and dividends receivable... 3,711,827 428,887 1,856,269
Receivable for capital shares
issued............................. 445,467 -- --
Prepaid expenses and other assets... 12,938 9,936 7,004
------------ ------------ ------------
Total Assets....................... 691,414,039 268,473,059 274,826,843
------------ ------------ ------------
LIABILITIES:
Dividends payable................... 3,370,343 1,330,187 863,583
Cash overdraft...................... 729 -- 538
Payable for investments purchased... 4,000,000 -- 3,515,760
Payable for capital shares
redeemed........................... 615,844 -- --
Payable to adviser.................. 222,658 55,620 91,082
Payable to administrator............ 4,039 1,728 1,482
Accrued expenses and other
liabilities........................ 73,697 27,806 34,282
------------ ------------ ------------
Total Liabilities.................. 8,287,310 1,415,341 4,506,727
------------ ------------ ------------
NET ASSETS........................... $683,126,729 $267,057,718 $270,320,116
============ ============ ============
NET ASSETS consist of:
Paid-in capital..................... $683,118,005 $267,056,270 $270,329,930
Accumulated undistributed
(distributions in excess of) net
investment income.................. 13,072 2,214 782
Accumulated undistributed net
realized gains/(losses) on
investments transactions........... (4,348) (766) (10,596)
------------ ------------ ------------
TOTAL NET ASSETS..................... $683,126,729 $267,057,718 $270,320,116
============ ============ ============
INSTITUTIONAL SHARES:
Net Assets.......................... $681,617,895 $266,954,099 $270,138,493
Shares Outstanding.................. 681,618,619 266,954,860 270,126,010
Net Asset Value, offering and
redemption price per share......... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
INVESTMENT SHARES:
Net Assets.......................... $ 1,508,834 $ 103,619 $ 181,623
Shares Outstanding.................. 1,509,088 103,620 181,602
Net Asset Value, offering and
redemption price per share......... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
</TABLE>
See Notes to Financial Statements.
102
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Growth and Index Large Company Small Company International
Income Fund Equity Fund Growth Fund Growth Fund Growth Fund
----------- ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.................. $ 5,372,952 $ 5,589,677 $1,349,698 $ 3,325,686 $ 5,744,309
Interest................... -- -- -- 44,911 14,341
Income from securities
lending................... 23,899 33,197 -- 150,230 131,466
Less: Net foreign taxes
withheld.................. (24,383) (27,822) (6,616) (1,700) (473,849)
------------ ----------- ---------- ----------- ------------
Total Investment Income... 5,372,468 5,595,052 1,343,082 3,519,127 5,416,267
------------ ----------- ---------- ----------- ------------
EXPENSES:
Investment advisory fees... 2,880,312 1,377,379 749,153 2,789,515 2,205,141
Administration fees........ 740,701 826,521 192,541 716,359 528,160
Distribution fees
(Investment Shares)....... 69,082 56,395 481 34,102 20,226
Fund accounting fees....... 66,047 79,120 18,951 68,639 56,605
Custodian fees............. 12,041 10,612 3,981 4,624 107,671
Other expenses............. 100,182 155,732 48,171 112,876 80,137
------------ ----------- ---------- ----------- ------------
Total expenses before
waivers.................. 3,868,365 2,505,759 1,013,278 3,726,115 2,997,940
Less: expenses voluntarily
waived................... (41,144) (574,910) (10,701) (39,847) (29,399)
------------ ----------- ---------- ----------- ------------
Net Expenses.............. 3,827,221 1,930,849 1,002,577 3,686,268 2,968,541
------------ ----------- ---------- ----------- ------------
NET INVESTMENT
INCOME/(LOSS).............. 1,545,247 3,664,203 340,505 (167,141) 2,447,726
------------ ----------- ---------- ----------- ------------
NET REALIZED AND UNREALIZED
GAINS/(LOSSES) ON
INVESTMENTS:
Net realized gains/(losses)
on investments and foreign
currency transactions..... 26,969,731 (2,228,197) 66,927 24,188,337 4,948,976
Net realized gains/(losses)
on futures contracts...... (299,540) 347,018 21,335 (581,325) (394,725)
Net change in unrealized
appreciation/(depreciation)
of investments and
translation of assets and
liabilities in foreign
currencies and futures.... (44,559,005) (4,948,929) 2,358,526 34,631,855 (37,507,076)
------------ ----------- ---------- ----------- ------------
NET REALIZED AND UNREALIZED
GAINS/(LOSSES) ON
INVESTMENTS................ (17,888,814) (6,830,108) 2,446,788 58,238,867 (32,952,825)
------------ ----------- ---------- ----------- ------------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS................. $(16,343,567) $(3,165,905) $2,787,293 $58,071,726 $(30,505,099)
============ =========== ========== =========== ============
</TABLE>
See Notes to Financial Statements.
103
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended June 30, 2000
[LOGO OF KENT FUNDS] (Unaudited)
<TABLE>
<CAPTION>
Intermediate Short Term
Income Fund Bond Fund Bond Fund
----------- ------------ ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest............................... $10,970,189 $ 28,601,246 $ 5,231,177
Dividends.............................. 430,265 1,095,478 141,398
Income from securities lending......... 53,832 187,387 14,450
----------- ------------ -----------
Total Investment Income............... 11,454,286 29,884,111 5,387,025
----------- ------------ -----------
EXPENSES:
Investment advisory fees............... 927,793 2,309,097 400,782
Administration fees.................... 278,081 754,973 144,262
Distribution fees (Investment Shares).. 12,597 14,143 5,261
Fund accounting fees................... 27,943 68,142 14,372
Custodian fees......................... 4,118 13,742 1,800
Other expenses......................... 41,706 86,563 34,903
----------- ------------ -----------
Total expenses before waivers......... 1,292,238 3,246,660 601,380
Less: expenses voluntarily waived..... (15,462) (41,980) (10,119)
----------- ------------ -----------
Net Expenses.......................... 1,276,776 3,204,680 591,261
----------- ------------ -----------
NET INVESTMENT INCOME................... 10,177,510 26,679,431 4,795,764
----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAINS/(LOSSES) ON INVESTMENTS:
Net realized gains/(losses) on
investment transactions............... (5,914,775) (11,537,297) (1,140,675)
Net change in unrealized
appreciation/(depreciation) of
investments........................... 6,949,496 8,744,768 784,442
----------- ------------ -----------
NET REALIZED AND UNREALIZED
GAINS/(LOSSES) ON INVESTMENTS.......... 1,034,721 (2,792,529) (356,233)
----------- ------------ -----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $11,212,231 $ 23,886,902 $ 4,439,531
=========== ============ ===========
</TABLE>
See Notes to Financial Statements.
104
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Michigan
Tax-Free Intermediate Municipal
Income Fund Tax-Free Fund Bond Fund
----------- ------------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest................................ $3,457,100 $7,676,012 $2,452,633
Dividends............................... 47,755 65,117 32,907
---------- ---------- ----------
Total Investment Income................ 3,504,855 7,741,129 2,485,540
---------- ---------- ----------
EXPENSES:
Investment advisory fees................ 351,069 739,311 228,461
Administration fees..................... 114,795 265,974 91,323
Distribution fees (Investment Shares)... 1,970 3,717 4,708
Fund accounting fees.................... 14,222 30,243 12,098
Custodian fees.......................... 1,205 2,992 1,612
Other expenses.......................... 28,265 45,940 18,496
---------- ---------- ----------
Total expenses before waivers.......... 511,526 1,088,177 356,698
Less: expenses voluntarily waived...... (6,383) (14,785) (6,959)
---------- ---------- ----------
Net Expenses........................... 505,143 1,073,392 349,739
---------- ---------- ----------
NET INVESTMENT INCOME.................... 2,999,712 6,667,737 2,135,801
---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAINS/(LOSSES) ON INVESTMENTS:
Net realized gains/(losses) on
investment transactions................ 183,773 215,268 16,283
Net change in unrealized
appreciation/(depreciation) of
investments............................ 2,897,785 2,516,360 (12,320)
---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAINS/(LOSSES) ON INVESTMENTS........... 3,081,558 2,731,628 3,963
---------- ---------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............... $6,081,270 $9,399,365 $2,139,764
========== ========== ==========
</TABLE>
See Notes to Financial Statements.
105
<PAGE>
STATEMENTS OF OPERATIONS
For the six months ended June 30, 2000
[LOGO OF KENT FUNDS] (Unaudited)
<TABLE>
<CAPTION>
Michigan
Government Municipal
Money Market Money Market Money Market
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest............................. $18,900,624 $6,811,519 $5,677,746
Dividends............................ 1,401,570 334,072 69,692
----------- ---------- ----------
Total Investment Income............. 20,302,194 7,145,591 5,747,438
----------- ---------- ----------
EXPENSES:
Investment advisory fees............. 1,320,709 476,679 569,942
Administration fees.................. 592,334 214,335 255,974
Fund accounting fees................. 55,813 18,691 23,333
Custodian fees....................... 3,642 940 4,047
Other expenses....................... 94,428 37,698 29,319
----------- ---------- ----------
Total expenses before waivers....... 2,066,926 748,343 882,615
Less: expenses voluntarily waived... (280,689) (290,709) (135,541)
----------- ---------- ----------
Net Expenses........................ 1,786,237 457,634 747,074
----------- ---------- ----------
NET INVESTMENT INCOME................. 18,515,957 6,687,957 5,000,364
----------- ---------- ----------
NET REALIZED GAINS/(LOSSES) ON
INVESTMENTS.......................... 21 -- --
----------- ---------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............ $18,515,978 $6,687,957 $5,000,364
=========== ========== ==========
</TABLE>
See Notes to Financial Statements.
106
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Growth and Income Fund Index Equity Fund
---------------------------- ---------------------------
Six months Six months
ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
NET ASSETS at beginning of
period..................... $880,750,624 $ 878,285,832 $923,615,656 $809,351,352
------------ ------------- ------------ ------------
Increase (decrease) in net
assets resulting from
operations:
Net investment income...... 1,545,247 5,636,572 3,664,203 7,820,895
Net realized gains/(losses)
on investments and foreign
currency transactions..... 26,969,731 62,171,224 (2,228,197) 25,507,087
Net realized gains/(losses)
on futures contracts...... (299,540) (3,007,540) 347,018 (329,602)
Net change in unrealized
appreciation/(depreciation)
of investments and
translation of assets and
liabilities in foreign
currencies and futures.... (44,559,005) 83,278,426 (4,948,929) 128,549,533
------------ ------------- ------------ ------------
Net increase/(decrease) in
net assets resulting from
operations................ (16,343,567) 148,078,682 (3,165,905) 161,547,913
------------ ------------- ------------ ------------
Dividends and distributions
to shareholders from:
Institutional:
Net investment income...... (1,669,761) (5,416,138) (3,454,544) (7,530,646)
Net realized gains on
investments............... (34,175,850) (33,829,516) (8,157,677) (18,771,791)
------------ ------------- ------------ ------------
Total dividends and
distributions --
Institutional Shares.... (35,845,611) (39,245,654) (11,612,221) (26,302,437)
------------ ------------- ------------ ------------
Investment:
Net investment income...... (50,226) (205,647) (121,133) (287,641)
Net realized gains on
investments............... (2,427,347) (2,250,860) (423,559) (999,490)
------------ ------------- ------------ ------------
Total dividends and
distributions --
Investment Shares....... (2,477,573) (2,456,507) (544,692) (1,287,131)
------------ ------------- ------------ ------------
Total dividends and
distributions to
shareholders............. (38,323,184) (41,702,161) (12,156,913) (27,589,568)
------------ ------------- ------------ ------------
Net increase/(decrease) from
capital transactions....... (26,210,994) (103,911,729) 32,528,306 (19,694,041)
------------ ------------- ------------ ------------
Net increase/(decrease) in
net assets................ (80,877,745) 2,464,792 17,205,488 114,264,304
------------ ------------- ------------ ------------
NET ASSETS at end of
period..................... $799,872,879 $ 880,750,624 $940,821,144 $923,615,656
============ ============= ============ ============
</TABLE>
See Notes to Financial Statements.
107
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Large Company Growth Fund Small Company Growth Fund International Growth Fund
------------------------- ------------------------- -------------------------
Six months Six months Six months
ended Period ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (a) (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS at beginning of
period..................... $183,511,880 $ -- $772,709,655 $783,790,477 $594,847,537 $540,889,186
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net
assets resulting from
operations:
Net investment
income/(loss)............. 340,505 120,200 (167,141) 937,964 2,447,726 3,840,882
Net realized gains/(losses)
on investments and foreign
currency transactions..... 66,927 (10,214) 24,188,337 (3,554,306) 4,948,976 10,022,188
Net realized gains/(losses)
on futures contracts...... 21,335 323,696 (581,325) 2,801,428 (394,725) --
Net change in unrealized
appreciation/(depreciation)
of investments, and
translation of assets and
liabilities in foreign
currencies and futures.... 2,358,526 23,613,404 34,631,855 169,748,364 (37,507,076) 123,104,119
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in
net assets resulting from
operations................ 2,787,293 24,047,086 58,071,726 169,933,450 (30,505,099) 136,967,189
------------ ------------ ------------ ------------ ------------ ------------
Dividends and distributions
to shareholders from:
Institutional:
Net investment income...... (235,619) (133,404) -- (937,948) (1,606,953) (3,751,764)
In excess of net investment
income.................... -- -- -- -- -- (32,244)
Net realized gains on
investments............... (441,977) (154,978) -- (14,995,703) (8,378,995) (21,132,304)
In excess of net realized
gains on investments...... -- -- -- (596,642) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Institutional shares.... (677,596) (288,382) -- (16,530,293) (9,985,948) (24,916,312)
------------ ------------ ------------ ------------ ------------ ------------
Investment:
Net investment income...... (9) (62) -- -- (12,054) (89,117)
In excess of net investment
income.................... -- -- -- -- -- (766)
Net realized gains on
investments............... (809) (110) -- (467,806) (219,988) (495,222)
In excess of net realized
gains on investments...... -- -- -- (18,613) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Investment Shares........ (818) (172) -- (486,419) (232,042) (585,105)
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions to
shareholders............. (678,414) (288,554) -- (17,016,712) (10,217,990) (25,501,417)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) from
capital transactions....... 71,665,682 159,753,348 21,370,077 (163,997,560) 57,563,906 (57,507,421)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in
net assets................ 73,774,561 183,511,880 79,441,803 (11,080,822) 16,840,817 53,958,351
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS at end of
period..................... $257,286,441 $183,511,880 $852,151,458 $772,709,655 $611,688,354 $594,847,537
============ ============ ============ ============ ============ ============
</TABLE>
-------
(a) For the period from October 19, 1999 (commencement of operations) to Decem-
ber 31, 1999.
See Notes to Financial Statements.
108
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Income Fund Intermediate Bond Fund Short Term Bond Fund
--------------------------- --------------------------- ---------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS at beginning of
period..................... $305,630,512 $241,646,346 $855,056,723 $897,892,875 $176,777,192 $145,355,056
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net
assets resulting from
operations:
Net investment income...... 10,177,510 17,406,682 26,679,431 50,281,025 4,795,764 8,574,181
Net realized gains/(losses)
on investment
transactions.............. (5,914,775) (6,701,014) (11,537,297) (14,169,768) (1,140,675) (292,208)
Net change in unrealized
appreciation/(depreciation)
of investments............ 6,949,496 (22,407,559) 8,744,768 (47,446,428) 784,442 (4,657,164)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in
net assets resulting from
operations................ 11,212,231 (11,701,891) 23,886,902 (11,335,171) 4,439,531 3,624,809
------------ ------------ ------------ ------------ ------------ ------------
Dividends and distributions
to shareholders from:
Institutional:
Net investment income...... (9,823,541) (16,763,277) (25,837,606) (49,870,692) (4,621,738) (8,295,526)
In excess of net investment
income.................... -- (3,048) -- (10,961) -- --
In excess of net realized
gains on investments...... -- (278,297) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Institutional Shares.... (9,823,541) (17,044,622) (25,837,606) (49,881,653) (4,621,738) (8,295,526)
------------ ------------ ------------ ------------ ------------ ------------
Investment:
Net investment income...... (314,130) (643,405) (341,404) (654,403) (121,477) (275,645)
In excess of net investment
income.................... -- (117) -- (144) -- --
In excess of net realized
gains on investments...... -- (12,034) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Investment Shares........ (314,130) (655,556) (341,404) (654,547) (121,477) (275,645)
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions to
shareholders............. (10,137,671) (17,700,178) (26,179,010) (50,536,200) (4,743,215) (8,571,171)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) from
capital transactions....... 6,344,382 93,386,235 (74,821,339) 19,035,219 (23,720,667) 36,368,498
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in
net assets................ 7,418,942 63,984,166 (77,113,447) (42,836,152) (24,024,351) 31,422,136
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS at end of
period..................... $313,049,454 $305,630,512 $777,943,276 $855,056,723 $152,752,841 $176,777,192
============ ============ ============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
109
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
[LOGO OF KENT FUNDS]
<TABLE>
<CAPTION>
Tax-Free Intermediate Michigan Municipal
Income Fund Tax-Free Fund Bond Fund
--------------------------- --------------------------- ---------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS at beginning of
period..................... $123,606,111 $130,170,230 $306,693,718 $300,521,904 $106,985,205 $123,902,863
------------ ------------ ------------ ------------ ------------ ------------
Increase (decrease) in net
assets resulting from
operations:
Net investment income...... 2,999,712 5,442,101 6,667,737 13,122,259 2,135,801 4,611,338
Net realized gains/(losses)
on investment
transactions.............. 183,773 (1,090,627) 215,268 (1,498,246) 16,283 41,857
Net change in unrealized
appreciation/(depreciation)
of investments............ 2,897,785 (8,469,132) 2,516,360 (14,931,504) (12,320) (3,892,509)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in
net assets resulting from
operations................ 6,081,270 (4,117,658) 9,399,365 (3,307,491) 2,139,764 760,686
------------ ------------ ------------ ------------ ------------ ------------
Dividends and distributions
to shareholders from:
Institutional:
Net investment income...... (2,949,447) (5,367,030) (6,550,701) (12,913,338) (2,054,341) (4,434,362)
In excess of net investment
income.................... -- (1,169) -- (2,699) -- (175)
Net realized gains on
investments............... -- -- -- -- -- (12,125)
In excess of net realized
gains on investments...... -- (108,848) -- (297,654) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Institutional Shares.... (2,949,447) (5,477,047) (6,550,701) (13,213,691) (2,054,341) (4,446,662)
------------ ------------ ------------ ------------ ------------ ------------
Investment:
Net investment income...... (34,906) (75,485) (62,207) (163,183) (75,834) (197,142)
In excess of net investment
income.................... -- (16) -- (34) -- (8)
Net realized gains on
investments............... -- -- -- -- -- (534)
In excess of net realized
gains on investments...... -- (1,661) -- (3,898) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Investment Shares........ (34,906) (77,162) (62,207) (167,115) (75,834) (197,684)
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions to
shareholders............. (2,984,353) (5,554,209) (6,612,908) (13,380,806) (2,130,175) (4,644,346)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) from
capital transactions....... 14,682,805 3,107,748 (29,440,920) 22,860,111 (11,542,220) (13,033,998)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease) in
net assets................ 17,779,722 (6,564,119) (26,654,463) 6,171,814 (11,532,631) (16,917,658)
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS at end of
period..................... $141,385,833 $123,606,111 $280,039,255 $306,693,718 $ 95,452,574 $106,985,205
============ ============ ============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
110
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Government Michigan Municipal
Money Market Fund Money Market Fund Money Market Fund
--------------------------- --------------------------- ---------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS at beginning
of period.............. $656,911,792 $697,127,619 $215,520,656 $167,015,544 $293,276,959 $323,617,493
------------ ------------ ------------ ------------ ------------ ------------
Increase in net assets
resulting from
operations:
Net investment income.. 18,515,957 31,499,445 6,687,957 9,453,668 5,000,364 8,826,013
Net realized
gains/(losses) on
investments........... 21 (162) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)
in net assets
resulting from
operations............ 18,515,978 31,499,283 6,687,957 9,453,668 5,000,364 8,826,013
------------ ------------ ------------ ------------ ------------ ------------
Dividends and
distributions to
shareholders from:
Institutional:
Net investment income.. (18,468,211) (31,404,991) (6,685,200) (9,447,725) (4,991,945) (8,806,391)
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Institutional
Shares............... (18,468,211) (31,404,991) (6,685,200) (9,447,725) (4,991,945) (8,806,391)
------------ ------------ ------------ ------------ ------------ ------------
Investment:
Net investment income.. (47,746) (94,454) (2,757) (5,943) (8,419) (19,621)
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions --
Investment Shares... (47,746) (94,454) (2,757) (5,943) (8,419) (19,621)
------------ ------------ ------------ ------------ ------------ ------------
Total dividends and
distributions to
shareholders......... (18,515,957) (31,499,445) (6,687,957) (9,453,668) (5,000,364) (8,826,012)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)
from capital
transactions........... 26,214,916 (40,215,665) 51,537,062 48,505,112 (22,956,843) (30,340,535)
------------ ------------ ------------ ------------ ------------ ------------
Net increase/(decrease)
in net assets......... 26,214,937 (40,215,827) 51,537,062 48,505,112 (22,956,843) (30,340,534)
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS at end of
period................. $683,126,729 $656,911,792 $267,057,718 $215,520,656 $270,320,116 $293,276,959
============ ============ ============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
111
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
[LOGO OF KENT FUNDS]
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. The
Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest without par value. The Trust may issue
more than one series of shares and it may create one or more classes of shares
within each series. 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. As of the date of this report, the Trust
offered fifteen separate series, each with its own investment objective.
The accompanying financial statements and financial highlights are those of
the following: Kent Growth and Income Fund, Kent Index Equity Fund, Kent Large
Company Growth Fund, Kent Small Company Growth Fund, Kent International Growth
Fund, Kent Income Bond Fund, Kent Intermediate Bond Fund, Kent Short Term Bond
Fund, Kent Tax-Free Income Fund, Kent Intermediate Tax-Free Fund, Kent Michi-
gan Municipal Bond Fund, Kent Money Market Fund, Kent Government Money Market
Fund and Kent Michigan Municipal Money Market Fund (individually, a "Fund" and
collectively, the "Funds"). Each fund currently has two classes of shares:
Investment Shares and Institutional Shares.
The investment objectives of the Funds are as follows:
Growth and Income Fund -- To seek long-term capital growth with current
income as a secondary objective.
Index Equity Fund -- To seek long-term capital appreciation with current
income as a secondary objective.
Large Company Growth Fund -- To seek long-term capital appreciation.
Small Company Growth Fund -- To seek long-term capital appreciation.
International Growth Fund -- To seek long-term capital appreciation.
Income Fund -- To seek current income.
Intermediate Bond Fund -- To seek current income.
Short Term Bond Fund -- To seek current income.
Tax-Free Income Fund -- To seek current income that is exempt from federal
income tax.
Intermediate Tax-Free Fund -- To seek current income that is exempt from fed-
eral income tax.
Michigan Municipal Bond Fund -- To seek current income that is exempt from
federal income tax and Michigan personal income tax.
Money Market Fund -- To seek current income.
Government Money Market Fund -- To seek current income.
Michigan Municipal Money Market Fund -- To seek current income that is exempt
from federal income tax and Michigan personal income tax.
2.Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that may 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.
Security Valuation: Securities in the Money Market Fund, Government Money Mar-
ket Fund and Michigan Municipal Money Market Fund (the "Money Market Funds")
are valued utilizing the amortized cost valuation method permitted in accor-
dance with Rule 2a-7 under the 1940 Act, which approximates market value. This
method involves valuing a security initially at its cost on the date of pur-
chase and thereafter assuming a constant amortization to maturity of the dif-
ference between the principal amount due at maturity and initial cost.
In the Income Fund, Intermediate Bond Fund, Short Term Bond Fund, Tax-Free
Income Fund, Intermediate Tax-Free Fund and Michigan Municipal Bond Fund, cor-
porate 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 selected by the Funds' investment adviser, Lyon
Street Asset Management Company ("Lyon Street"), and approved by the Board of
Trustees. Short-term obligations that mature in 60 days or less are valued at
amortized cost, which approximates market value. All other securities and
other assets are appraised at their fair value as determined in good faith
under consistently applied procedures approved by and under the general super-
vision of the Board of Trustees.
The Growth and Income Fund, Index Equity Fund, Large Company Growth Fund,
Small Company Growth Fund and International Growth Fund value listed securi-
ties at the last sales price on the principal exchange where such securities
112
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
are traded. Listed securities for which last sales prices are not available
are valued at the last bid price. Unlisted securities on the National Market
System (NMS) are valued at the last sales price or, in the absence of any
sales, the last bid price in the principal market where such securities trade.
Short-term obligations that mature in 60 days or less are valued at amortized
cost, which approximates market value. All other securities and other assets
are appraised at their fair value as determined in good faith under consist-
ently applied procedures established by and under the general supervision of
the Board of Trustees.
Repurchase Agreements: Each Fund may agree to purchase portfolio securities
from financial institutions subject to the seller's agreement to repurchase
them at a mutually agreed upon date and price ("repurchase agreement"). Secu-
rities subject to repurchase agreements are held either by the Trust's custo-
dian and other banks acting in a subcustodian capacity or in the Federal
Reserve/Treasury Book-Entry System. 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 Funds 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
denominated in foreign currencies are converted each business day into U.S.
dollars based upon current exchange rates. Realized gains and losses on for-
eign investments and foreign income and expenses are converted into U.S. dol-
lars 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 Fund realizes a gain or loss on foreign cur-
rency amounting to the difference between the original value and the ending
value of the receivable or payable.
Futures Contracts: The Funds (except for the Money Market Funds) may invest in
futures contracts. The use of futures contracts involves, to varying degrees,
elements of market risk and risks in excess of the amount recognized in the
Statements of Assets and Liabilities. The face or contract amounts reflect the
extent of the involvement the Funds have in the particular classes of instru-
ments. Risks include an imperfect correlation between the movements in the
price of the instruments and the price of the underlying securities and inter-
est rates. Risks may also arise if there is an illiquid secondary market for
the instruments or if counterparties are unable to perform under the terms of
the contract.
To the extent that a Fund enters into futures contracts on an index or group
of securities, the Fund exposes itself to an indeterminate liability. Upon
entering into a futures contract, the Fund 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. Futures contracts are valued at the settlement
price established each day by the board of trade or exchange on which they are
traded.
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 cur-
rency of certain Fund investments. A forward foreign currency exchange con-
tract 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 recog-
nized when entering a closing or offsetting forward foreign currency exchange
contract with the same settlement date and broker.
Forward Commitments and When-Issued Securities: Each Fund may purchase securi-
ties on a "when-issued" basis or purchase or sell securities on a forward com-
mitment (sometimes called delayed delivery) basis. A Fund will purchase secu-
rities on a when-issued basis or purchase or sell securities on a forward com-
mitment basis only with the intention of completing the transaction and actu-
ally purchasing or selling the securities. If deemed advisable as a matter of
investment strategy, however, a Fund may dispose of or negotiate a commitment
after entering into it. A Fund also may sell securities it has committed to
purchase before those securities are delivered to the Fund on the settlement
date.
Securities purchased or sold on a when-issued or forward commitment basis
involve a risk of loss if the value of the security to be purchased declines,
or the value of the security to be sold increases, before the settlement date.
When a Fund
113
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
[LOGO OF KENT FUNDS]
engages in when-issued and forward commitment transactions, it relies on the
other party to consummate the trade. Failure of such party to do so may result
in the Fund incurring a loss or missing an opportunity to obtain a price con-
sidered to be advantageous.
When a Fund purchases securities on a when-issued or forward commitment
basis, the Trust's custodian will maintain in a segregated account cash or
other liquid securities having a value (determined daily) at least equal to
the amount of the Fund's purchase commitments. In the case of a forward com-
mitment to sell portfolio securities, the custodian will hold the portfolio
securities themselves in a segregated account while the commitment is out-
standing. These procedures are designed to ensure that the Fund will maintain
sufficient assets at all times to cover its obligations under when-issued and
forward commitment transactions.
Securities Lending: Each Fund may lend portfolio securities valued at up to
one-third of its total assets (including the value of the collateral received
for the loan), pursuant to agreements requiring that the loan be continuously
secured by collateral, which may consist of cash, securities issued or guaran-
teed by the U.S. Government or its agencies or instrumentalities, irrevocable
bank letters of credit or any other liquid high-grade short-term instrument
approved for use as collateral by the Securities and Exchange Commission (or
any combination thereof). The Funds continue to earn interest on securities
loaned while simultaneously seeking to earn interest on the investment of col-
lateral. Collateral is marked to market daily to provide a level of collateral
at least equal to the market value of securities loaned.
When cash is received as collateral for securities loaned, the Funds may
invest such cash in short-term U.S. Government securities, repurchase agree-
ments, or other securities with maturities equal to or less than maturity date
of the applicable lending transaction. The cash or subsequent short-term
investments are recorded as assets of the Funds, offset by a corresponding
liability to repay the cash at the termination of the loan. In addition, the
short-term securities purchased with the cash collateral are included in the
accompanying schedules of portfolio investments. Fixed income securities
received as collateral are not recorded as an asset or liability of the Fund
because the Fund does not have effective control of such securities.
There may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail financial-
ly. However, loans will be made only to borrowers deemed by Lyon Street to be
of good standing under guidelines established by the Board of Trustees and
when, in Lyon Street's judgment, the income to be earned from the loan justi-
fies the attendant risks. Loans are subject to termination by the Funds or the
borrower at any time, and are, therefore, not considered to be illiquid
investments. As of June 30, 2000, the following Funds had securities on loan
with the following market values and collateral amounts (amounts in thou-
sands):
<TABLE>
<CAPTION>
Market Value Market Value
of of Loaned
Collateral Securities
------------ ------------
<S> <C> <C>
Growth and Income Fund................................ $ 15,390 $ 14,932
Index Equity Fund..................................... $ 22,894 $ 22,449
Small Company Growth Fund............................. $106,637 $103,652
International Growth Fund............................. $ 50,493 $ 46,443
Income Fund........................................... $ 43,509 $ 42,605
Intermediate Bond Fund................................ $103,326 $101,313
Short Term Bond Fund.................................. $ 32,219 $ 31,564
</TABLE>
At June 30, 2000, each Fund's loaned securities were fully collateralized by
cash, which was reinvested in short-term securities.
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 is recorded on the accrual basis and includes, where
applicable, the amortization of premiums or accretion of discounts. Dividend
income is recorded on the ex-dividend date.
Dividends and Distributions to Shareholders: The Money Market Funds declare
dividends daily from net investment income and pay such dividends monthly. The
other Funds declare and distribute dividends from net investment income month-
ly, with the exception of the International Growth Fund, which declares and
pays dividends annually. Net realized capital gains, if any, are distributed
at least annually.
The amounts of dividends from net investment income and of distributions from
net realized gains are determined in accordance with federal income tax regu-
lations 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. Divi-
dends 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 dis-
tributions 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 paid-in-capital.
114
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
Federal Income Taxes: For federal income tax purposes, each Fund is treated as
a separate entity for the purpose of determining its qualification as a regu-
lated investment company under the Internal Revenue Code (the "Code"). It is
the policy of each Fund 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.
Expenses: Expenses directly attributable to a Fund are charged to the Fund,
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 attribut-
able to the Institutional Shares as a class.
3.Related Party Transactions
The Funds are advised by Lyon Street. Lyon Street is entitled to receive a
fee, computed daily and paid monthly, based on each Fund's average daily net
assets.
Old Kent Securities Corporation, 111 Lyon Street NW, Grand Rapids, Michigan
49503 ("OKSC"), serves as the Administrator, Fund Accountant and Transfer
Agent to the Trust. As compensation for the services and facilities provided
to the Trust pursuant to the Administration Agreement, OKSC is entitled to
receive an annual fee, payable monthly as one twelfth of the annual fee, based
on the Trust's aggregate average daily net assets as follows: up to $5.0 bil-
lion-0.185% of such assets; between $5.0 and $7.5 billion-0.165% of such
assets; and over $7.5 billion-0.135% of such assets, provided, however, that
such annual fee shall be subject to an annual minimum fee of $45,000 per fund
that is applicable to certain Funds of the Trust. As compensation for the
services provided to the Trust pursuant to the Fund Accounting Agreement, OKSC
is entitled to receive a fee computed daily at the annual rate of 0.015% of
the Trust's average daily net assets, provided, however, that such annual fee
shall be subject to an annual minimum fee of $10,000 per fund that is applica-
ble to certain Funds of the Trust. As compensation for the services provided
to the Trust pursuant to the Transfer Agency Agreement, OKSC is entitled to
receive an annual fee of $16.50 per account for active accounts and $7.50 per
account for closed accounts, provided, however, that such annual fee shall be
subject to an annual minimum fee of $15,000 per fund that is applicable to
certain Funds of the Trust.
BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219
("BISYS"), provides certain administrative services to the Trust pursuant to
agreements between OKSC and BISYS. As compensation for the services provided
by it under the Sub-Administration Agreement, Sub-Fund Accounting Agreement
and Sub-Transfer Agency Agreement, BISYS is entitled to receive a fee from
OKSC computed daily at the annual rate of 0.045% of the Trust's average daily
net assets. Pursuant to the Sub-Transfer Agency Agreement, BISYS is also enti-
tled to receive from OKSC a $15 per account annual processing fee for all
Trust accounts in excess of $22,000. The fees paid to BISYS by OKSC for such
services come out of OKSC's fees and are not an additional charge to the
Funds.
Kent Fund Distributors, Inc., 3435 Stelzer Road, Columbus, Ohio 43219
("KFDI"), is the distributor of the Funds' shares. KFDI and BISYS are each a
wholly-owned subsidiary of The BISYS Group, Inc.
The Trust has adopted a distribution plan (the "Plan") on behalf of the
Investment Shares of the Funds pursuant to Rule 12b-1 of the 1940 Act. The
Plan provides for payments to the Funds' distributor of up to 0.25% of the
average daily net assets of the Investment Shares of the Funds. Although the
Money Market Funds are authorized to pay 12b-1 fees of up to 0.25% in connec-
tion with the sale of Investment Shares, none of the Money Market Funds cur-
rently intends to pay such fees.
115
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
[LOGO OF KENT FUNDS]
Information regarding these transactions is as follows for the six months
ended June 30, 2000:
<TABLE>
<CAPTION>
Fund Distribution
Investment Advisory Administration Accounting Investment Shares
------------------------- -------------- ---------- -----------------
Annual fee
before voluntary
fee reductions Waived Waived Waived Waived
---------------- -------- -------------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Growth and Income Fund.. 0.70% $ -- $ -- $41,144 $ --
Index Equity Fund....... 0.30% 229,560 276,486 68,864 --
Large Company Growth
Fund................... 0.70% -- -- 10,701 --
Small Company Growth
Fund................... 0.70% -- -- 39,847 --
International Growth
Fund................... 0.75% -- -- 29,399 --
Income Fund............. 0.60% -- -- 15,462 --
Intermediate Bond Fund.. 0.55% -- -- 41,980 --
Short Term Bond Fund.... 0.50% -- -- 8,015 2,104
Tax-Free Income Fund.... 0.55% -- -- 6,383 --
Intermediate Tax-Free
Fund................... 0.50% -- -- 14,785 --
Michigan Municipal Bond
Fund................... 0.45% -- -- 5,076 1,883
Money Market Fund....... 0.40% -- 231,167 49,522 --
Government Money Market
Fund................... 0.40% 201,132 71,703 17,874 --
Michigan Municipal Money
Market Fund............ 0.40% -- 114,170 21,371 --
</TABLE>
Certain officers of the Trust are affiliated with BISYS and Lyon Street. Such
officers receive no direct payments or fees from the Trust for serving as
officers.
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.
116
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
4.Capital Share Transactions
Transactions in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
Growth and Income Fund Index Equity Fund
---------------------------- ----------------------------
Six months Six months
ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Institutional:
Shares issued.......... $ 92,363,627 $ 277,819,798 $ 140,372,541 $ 199,778,408
Reinvestment of
distributions......... 14,300,497 15,842,666 8,861,953 20,227,589
Shares redeemed........ (132,719,522) (398,650,525) (113,630,612) (242,642,155)
------------- ------------- ------------- -------------
Net increase
(decrease) from
Institutional capital
transactions......... (26,055,398) (104,988,061) 35,603,882 (22,636,158)
------------- ------------- ------------- -------------
Investment:
Shares issued.......... 9,262,590 17,701,397 6,159,093 13,670,782
Reinvestment of
distributions......... 2,425,634 2,410,451 533,953 1,267,722
Shares redeemed........ (11,843,820) (19,035,516) (9,768,622) (11,996,387)
------------- ------------- ------------- -------------
Net increase
(decrease) from
Investment capital
transactions......... (155,596) 1,076,332 (3,075,576) 2,942,117
------------- ------------- ------------- -------------
Total net increase
(decrease) from
capital
transactions......... $ (26,210,994) $(103,911,729) $ 32,528,306 $ (19,694,041)
============= ============= ============= =============
SHARE ACTIVITY
Institutional:
Shares issued.......... 4,789,024 14,599,481 5,135,681 7,671,249
Reinvestment of
distributions......... 719,787 826,101 313,097 759,240
Shares redeemed........ (6,830,796) (21,073,132) (4,092,168) (9,310,489)
------------- ------------- ------------- -------------
Net increase
(decrease) from
Institutional share
transactions......... (1,321,985) (5,647,550) 1,356,610 (880,000)
------------- ------------- ------------- -------------
Investment:
Shares issued.......... 485,931 927,802 224,018 521,404
Reinvestment of
distributions......... 122,982 126,161 18,771 47,372
Shares redeemed........ (622,527) (994,683) (354,975) (455,348)
------------- ------------- ------------- -------------
Net increase
(decrease) from
Investment share
transactions......... (13,614) 59,280 (112,186) 113,428
------------- ------------- ------------- -------------
Total net increase
(decrease) from share
transactions......... (1,335,599) (5,588,270) 1,244,424 (766,572)
============= ============= ============= =============
</TABLE>
117
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
[LOGO OF KENT FUNDS]
Capital Share Transactions
Transactions in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
Large Company Growth Fund Small Company Growth Fund International Growth Fund
--------------------------- ---------------------------- ----------------------------
Six months Six months Six months
ended Period ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (a) (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
Institutional:
Shares issued.......... $ 97,352,065 $169,096,866 $ 160,909,696 $ 154,201,918 $118,205,599 $ 126,955,671
Shares issued in
conversion............ -- 940,516 -- -- -- --
Reinvestment of
distributions......... 363,631 166,586 -- 8,812,315 4,427,570 11,794,384
Shares redeemed........ (26,369,326) (10,690,724) (139,063,624) (324,647,618) (68,326,082) (196,202,032)
------------ ------------ ------------- ------------- ------------ -------------
Net increase
(decrease) from
Institutional capital
transactions......... 71,346,370 159,513,244 21,846,072 (161,633,385) 54,307,087 (57,451,977)
------------ ------------ ------------- ------------- ------------ -------------
Investment:
Shares issued.......... 357,542 239,932 14,871,026 13,329,530 78,200,811 22,160,970
Reinvestment of
distributions......... 699 172 -- 479,211 220,899 574,449
Shares redeemed........ (38,929) -- (15,347,021) (16,172,916) (75,164,891) (22,790,863)
------------ ------------ ------------- ------------- ------------ -------------
Net increase
(decrease) from
Investment capital
transactions......... 319,312 240,104 (475,995) (2,364,175) 3,256,819 (55,444)
------------ ------------ ------------- ------------- ------------ -------------
Total net increase
(decrease) from
capital
transactions......... $ 71,665,682 $159,753,348 $ 21,370,077 $(163,997,560) $ 57,563,906 $ (57,507,421)
============ ============ ============= ============= ============ =============
SHARE ACTIVITY
Institutional:
Shares issued.......... 8,366,765 16,269,657 8,181,208 9,832,586 6,464,155 7,713,913
Shares issued in
conversion............ -- 94,052 -- -- -- --
Reinvestment of
distributions......... 30,188 14,463 -- 639,280 230,723 757,883
Shares redeemed........ (2,234,652) (938,361) (6,853,762) (20,958,974) (3,695,462) (11,876,965)
------------ ------------ ------------- ------------- ------------ -------------
Net increase
(decrease) from
Institutional share
transactions......... 6,162,301 15,439,811 1,327,446 (10,487,108) 2,999,416 (3,405,169)
------------ ------------ ------------- ------------- ------------ -------------
Investment:
Shares issued.......... 30,551 21,339 754,310 806,814 4,332,789 1,283,948
Reinvestment of
distributions......... 57 15 -- 35,153 11,651 37,200
Shares redeemed........ (3,408) -- (770,404) (996,153) (4,140,126) (1,316,231)
------------ ------------ ------------- ------------- ------------ -------------
Net increase
(decrease) from
Investment share
transactions......... 27,200 21,354 (16,094) (154,186) 204,314 4,917
------------ ------------ ------------- ------------- ------------ -------------
Total net increase
(decrease) from share
transactions......... 6,189,501 15,461,165 1,311,352 (10,641,294) 3,203,730 (3,400,252)
============ ============ ============= ============= ============ =============
</TABLE>
-------
(a) For the period from October 19, 1999 (commencement of operations) to Decem-
ber 31, 1999.
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
Capital Share Transactions
Transactions in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
Income Fund Intermediate Bond Fund Short Term Bond Fund
--------------------------- ---------------------------- ---------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
Institutional:
Shares issued.......... $ 35,841,164 $131,273,521 $ 109,250,514 $ 231,579,566 $ 23,690,862 $ 86,481,060
Reinvestment of
distributions......... 2,680,076 4,471,773 14,078,520 26,576,542 2,915,602 5,027,496
Shares redeemed........ (31,143,336) (43,505,533) (197,642,853) (239,190,951) (49,641,113) (53,745,218)
------------ ------------ ------------- ------------- ------------ ------------
Net increase
(decrease) from
Institutional capital
transactions......... 7,377,904 92,239,761 (74,313,819) 18,965,157 (23,034,649) 37,763,338
------------ ------------ ------------- ------------- ------------ ------------
Investment:
Shares issued.......... 1,197,591 4,937,662 1,411,296 4,714,196 213,559 607,835
Reinvestment of
distributions......... 303,743 630,110 324,453 612,835 115,075 262,804
Shares redeemed........ (2,534,856) (4,421,298) (2,243,269) (5,256,969) (1,014,652) (2,265,479)
------------ ------------ ------------- ------------- ------------ ------------
Net increase
(decrease) from
Investment capital
transactions......... (1,033,522) 1,146,474 (507,520) 70,062 (686,018) (1,394,840)
------------ ------------ ------------- ------------- ------------ ------------
Total net increase
(decrease) from
capital
transactions......... $ 6,344,382 $ 93,386,235 $ (74,821,339) $ 19,035,219 $(23,720,667) $ 36,368,498
============ ============ ============= ============= ============ ============
SHARE ACTIVITY
Institutional:
Shares issued.......... 3,858,778 13,490,256 11,686,482 23,876,600 2,506,496 8,983,559
Reinvestment of
distributions......... 289,650 463,507 1,511,326 2,754,272 309,127 523,910
Shares redeemed........ (3,369,641) (4,473,527) (21,279,834) (24,651,218) (5,256,193) (5,582,626)
------------ ------------ ------------- ------------- ------------ ------------
Net increase
(decrease) from
Institutional share
transactions......... 778,787 9,480,236 (8,082,026) 1,979,654 (2,440,570) 3,924,843
------------ ------------ ------------- ------------- ------------ ------------
Investment:
Shares issued.......... 128,895 509,039 150,231 486,011 22,596 63,180
Reinvestment of
distributions......... 32,873 65,182 34,757 63,357 12,211 27,376
Shares redeemed........ (274,344) (457,311) (240,098) (542,512) (107,543) (234,980)
------------ ------------ ------------- ------------- ------------ ------------
Net increase
(decrease) from
Investment share
transactions......... (112,576) 116,910 (55,110) 6,856 (72,736) (144,424)
------------ ------------ ------------- ------------- ------------ ------------
Total net increase
(decrease) from share
transactions......... 666,211 9,597,146 (8,137,136) 1,986,510 (2,513,306) 3,780,419
============ ============ ============= ============= ============ ============
</TABLE>
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
[LOGO OF KENT FUNDS]
Capital Share Transactions
Transactions in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
Tax-Free Intermediate Michigan Municipal
Income Fund Tax-Free Fund Bond Fund
-------------------------- -------------------------- --------------------------
Six months Six months Six months
ended ended ended
June 30, Year ended June 30, Year ended June 30, Year ended
2000 December 31, 2000 December 31, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
Institutional:
Shares issued.......... $ 28,404,510 $ 27,730,254 $ 24,711,362 $ 52,130,072 $ 12,040,018 $ 27,945,889
Shares issued in
merger................ -- -- -- 31,650,596 -- --
Reinvestment of
distributions......... 134,334 200,624 223,337 377,994 71,050 102,580
Shares redeemed........ (13,896,211) (24,585,537) (53,326,892) (61,229,574) (22,813,421) (39,680,824)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) from
Institutional capital
transactions......... 14,642,633 3,345,341 (28,392,193) 22,929,088 (10,702,353) (11,632,355)
------------ ------------ ------------ ------------ ------------ ------------
Investment:
Shares issued.......... 367,881 849,540 601,936 1,775,624 152,416 1,356,718
Shares issued in
merger................ -- -- -- 394,701 -- --
Reinvestment of
distributions......... 34,241 68,056 54,078 113,979 50,776 133,694
Shares redeemed........ (361,950) (1,155,189) (1,704,741) (2,353,281) (1,043,059) (2,892,055)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) from
Investment capital
transactions......... 40,172 (237,593) (1,048,727) (68,977) (839,867) (1,401,643)
------------ ------------ ------------ ------------ ------------ ------------
Total net increase
(decrease) from
capital
transactions......... $ 14,682,805 $ 3,107,748 $(29,440,920) $ 22,860,111 $(11,542,220) $(13,033,998)
============ ============ ============ ============ ============ ============
SHARE ACTIVITY
Institutional:
Shares issued.......... 2,850,420 2,666,079 2,418,932 4,957,817 1,215,030 2,761,659
Shares issued in
merger................ -- -- -- 2,959,418 -- --
Reinvestment of
distributions......... 13,424 19,427 21,900 36,136 7,185 10,176
Shares redeemed........ (1,385,901) (2,351,884) (5,234,435) (5,815,118) (2,306,749) (3,924,536)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) from
Institutional share
transactions......... 1,477,943 333,622 (2,793,603) 2,138,253 (1,084,534) (1,152,701)
------------ ------------ ------------ ------------ ------------ ------------
Investment:
Shares issued.......... 36,594 80,858 58,718 167,735 15,387 132,963
Shares issued in
merger................ -- -- -- 36,871 -- --
Reinvestment of
distributions......... 3,414 6,542 5,302 10,867 5,143 13,229
Shares redeemed........ (35,948) (111,534) (167,178) (223,752) (105,348) (284,472)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) from
Investment share
transactions......... 4,060 (24,134) (103,158) (8,279) (84,818) (138,280)
------------ ------------ ------------ ------------ ------------ ------------
Total net increase
(decrease) from share
transactions......... 1,482,003 309,488 (2,896,761) 2,129,974 (1,169,352) (1,290,981)
============ ============ ============ ============ ============ ============
</TABLE>
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(continued)
Capital Share Transactions
Transactions in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
Government Michigan Municipal
Money Market Fund Money Market Fund Money Market Fund
------------------------------ ---------------------------- ----------------------------
Six months Six months Six months
ended Year ended ended Year ended ended Year ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
DOLLAR AMOUNTS
Institutional:
Shares issued.......... $ 878,816,739 $ 1,493,337,247 $ 308,816,686 $ 709,775,713 $ 156,248,695 $ 377,994,496
Reinvestment of
distributions......... 2,243,395 3,427,735 3,652,436 5,906,319 156,768 346,566
Shares redeemed........ (854,213,175) (1,535,393,344) (260,915,641) (667,203,871) (178,886,135) (408,993,597)
------------- --------------- ------------- ------------- ------------- -------------
Net increase
(decrease) from
Institutional capital
transactions......... 26,846,959 (38,628,362) 51,553,481 48,478,161 (22,480,672) (30,652,535)
------------- --------------- ------------- ------------- ------------- -------------
Investment:
Shares issued.......... 5,483,811 10,434,345 45,085 110,027 2,821,811 3,998,909
Reinvestment of
distributions......... 48,851 98,327 2,033 4,745 10,029 18,439
Shares redeemed........ (6,164,705) (12,119,975) (63,537) (87,821) (3,308,011) (3,705,348)
------------- --------------- ------------- ------------- ------------- -------------
Net increase
(decrease) from
Investment capital
transactions......... (632,043) (1,587,303) (16,419) 26,951 (476,171) 312,000
------------- --------------- ------------- ------------- ------------- -------------
Total net increase
(decrease) from
capital
transactions......... $ 26,214,916 $ (40,215,665) $ 51,537,062 $ 48,505,112 $ (22,956,843) $ (30,340,535)
============= =============== ============= ============= ============= =============
SHARE ACTIVITY
Institutional:
Shares issued.......... 878,816,739 1,493,337,247 308,816,686 709,775,713 156,248,695 377,994,496
Reinvestment of
distributions......... 2,243,395 3,427,735 3,652,436 5,906,319 156,768 346,566
Shares redeemed........ (854,213,175) (1,535,393,344) (260,915,641) (667,203,871) (178,886,135) (408,993,597)
------------- --------------- ------------- ------------- ------------- -------------
Net increase
(decrease) from
Institutional share
transactions......... 26,846,959 (38,628,362) 51,553,481 48,478,161 (22,480,672) (30,652,535)
------------- --------------- ------------- ------------- ------------- -------------
Investment:
Shares issued.......... 5,483,811 10,434,345 45,085 110,027 2,821,811 3,998,909
Reinvestment of
distributions......... 48,880 98,327 2,033 4,745 10,029 18,439
Shares redeemed........ (6,164,706) (12,119,975) (63,537) (87,821) (3,308,011) (3,705,348)
------------- --------------- ------------- ------------- ------------- -------------
Net increase
(decrease) from
Investment share
transactions......... (632,015) (1,587,303) (16,419) 26,951 (476,171) 312,000
------------- --------------- ------------- ------------- ------------- -------------
Total net increase
(decrease) from share
transactions......... 26,214,944 (40,215,665) 51,537,062 48,505,112 (22,956,843) (30,340,535)
============= =============== ============= ============= ============= =============
</TABLE>
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
[LOGO OF KENT 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, 2000, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
---- --------- -----
<S> <C> <C>
Growth and Income Fund............................... $ 54,491,206 $ 94,776,857
Index Equity Fund.................................... 78,553,850 45,627,810
Large Company Growth Fund............................ 63,943,949 2,116,099
Small Company Growth Fund............................ 203,600,530 170,303,616
International Growth Fund............................ 90,273,614 30,077,614
Income Fund.......................................... 231,409,262 242,631,644
Intermediate Bond Fund............................... 636,706,463 727,639,898
Short Term Bond Fund................................. 65,434,955 89,788,207
Tax-Free Income Fund................................. 92,101,795 77,438,280
Intermediate Tax-Free Fund........................... 63,807,399 97,049,746
Michigan Municipal Bond Fund......................... 13,614,653 27,277,799
</TABLE>
6. Risks Associated with Foreign Securities and Currencies
The Growth and Income Fund, the Large Company Growth Fund and the Interna-
tional Growth Fund can 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 secu-
rities of comparable U.S. issuers.
7. Concentration of Credit Risk
The Michigan Municipal Bond Fund and Michigan Municipal Money Market 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. These Funds are more susceptible to eco-
nomic 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.
The Tax-Free Income Fund, Intermediate Tax-Free Fund, Michigan Municipal Bond
Fund and the Michigan Municipal Money Market Fund had the following concentra-
tions by industry sector at June 30, 2000 (as a percentage of total invest-
ments):
<TABLE>
<CAPTION>
Michigan Michigan
Tax-Free Intermediate Municipal Municipal Money
Income Fund Tax-Free Fund Bond Fund Market Fund
----------- ------------- --------- ---------------
<S> <C> <C> <C> <C>
Airport..................... 8.57% 6.07% 2.34% 0%
Development................. 25.45% 16.86% 23.24% 78.17%
Education................... 5.25% 3.18% 8.25% 1.99%
Facilities.................. 1.70% 4.00% 3.46% 5.22%
General Obligation.......... 14.59% 17.25% 8.04% 1.03%
Higher Education............ 1.75% 4.36% 8.58% 0.37%
Medical..................... 2.62% 2.93% 16.23% 6.69%
Multi-family Housing........ -- -- -- 1.10%
Mutual Funds................ 0.51% 0.09% 0.60% 0.64%
Nursing Homes............... 1.34% 0.34% 0.60% --
Pollution................... 2.43% 2.53% 2.30% --
Power....................... 4.41% 4.92% 0.79% --
School District............. 16.27% 12.87% 14.47% --
Single-family Housing....... 2.45% 0.33% -- 2.57%
Student Loan................ -- 1.38% 2.56% --
Transportation.............. 6.33% 9.89% 3.17% 1.68%
Utilities................... 1.52% 4.44% 1.08% --
Water....................... 4.80% 8.55% 4.28% 0.55%
------ ------ ------ ------
100% 100% 100% 100%
====== ====== ====== ======
</TABLE>
122
<PAGE>
FINANCIAL HIGHLIGHTS
EQUITY FUNDS
INSTITUTIONAL SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income (Loss) from Investment
Operations
------------------------------- Less Dividends and Distributions from
Net Realized and -------------------------------------
Unrealized Gains Net Realized
(Losses) on Gains on
Investments, Investments,
Net Asset Futures Contracts Total Income In Excess Futures In Excess
Value, Net and Foreign (Loss) from Net of Net Contracts of Net
Beginning Investment Currency Investment Investment Investment and Foreign Realized
of Period Income/(Loss) Translations Operations Income Income Currency Gains
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH AND INCOME FUND
Ticker Symbol: KNVEX
Year ended 1995 $10.50 0.33 3.28 3.61 (0.33) -- (0.53) --
Year ended 1996 $13.25 0.30 2.16 2.46 (0.30) -- (1.51) --
Year ended 1997 $13.90 0.25 3.04 3.29 (0.25) -- (1.39) --
Year ended 1998 $15.55 0.13 4.03 4.16 (0.13) (0.01) (1.54) --
Year ended 1999 $18.03 0.12 3.20 3.32 (0.12) -- (0.81) --
Six months ended
(Unaudited) 2000 $20.42 0.04 (0.41) (0.37) (0.04) -- (0.87) --
------------------------------------------------------------------------------------------------------------------------------------
INDEX EQUITY FUND
Ticker Symbol: KNIEX
Year ended 1995 $10.68 0.26 3.44 3.70 (0.25) -- (1.57) --
Year ended 1996 $12.56 0.26 2.47 2.73 (0.26) -- (0.28) (0.04)
Year ended 1997 $14.71 0.25 4.50 4.75 (0.25) -- (0.05) (0.02)
Year ended 1998 $19.14 0.24 5.14 5.38 (0.24) -- (0.04) --
Year ended 1999 $24.24 0.24 4.68 4.92 (0.24) -- (0.61) --
Six months ended
(Unaudited) 2000 $28.31 0.11 (0.27) (0.16) (0.11) -- (0.26) --
------------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
Ticker Symbol: KLCGX
Period ended 1999(2) $10.00 0.01 1.88 1.89 (0.01) -- (0.01) --
Six months ended
(Unaudited) 2000 $11.87 0.02 0.02 0.04 (0.01) -- (0.02) --
------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
Ticker Symbol: KNEEX
Year ended 1995 $11.99 0.10 2.64 2.74 (0.10) -- (0.81) --
Year ended 1996 $13.82 0.12 2.55 2.67 (0.12) -- (0.72) --
Year ended 1997 $15.65 0.04 4.19 4.23 (0.04) (0.02) (1.43) --
Year ended 1998 $18.39 0.03 (1.08) (1.05) (0.03) -- (1.85) --
Year ended 1999 $15.46 0.02 4.16 4.18 (0.02) -- (0.32) (0.01)
Six months ended
(Unaudited) 2000 $19.29 (--)*** 1.31 1.31 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
Ticker Symbol: KNINX
Year ended 1995 $13.06 0.13 1.54 1.67 (0.13) (0.11) (0.31) --
Year ended 1996 $14.18 0.13 0.70 0.83 (0.10) (0.02) (0.13) (0.01)
Year ended 1997 $14.75 0.11 0.26 0.37 (0.09) (0.06) (0.07) (0.01)
Year ended 1998 $14.89 0.14 2.48 2.62 (0.07) (0.12) (1.41) --
Year ended 1999 $15.91 0.11 4.20 4.31 (0.12) -- (0.65) --
Six months ended
(Unaudited) 2000 $19.45 0.07 (1.10) (1.03) (0.05) -- (0.27) --
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Dividends
and
Distributions
from Ratios/Supplemental Data
------------- --------------------------------------------------------------
Ratio of
Net
Total Net Net Asset Net Assets, Ratio of Investment Ratio of
Dividends Change in Value, End of Expenses Income to Expenses Portfolio
and Net Asset End of Total Period to Average Average to Average Turnover
Distributions Value Period Return (000's) Net Assets Net Assets Net Assets* Rate (1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH AND INCOME FUND
Ticker Symbol: KNVEX
Year ended (0.86) 2.75 $13.25 34.91% $401,371 0.94% 2.73% ** 58%
Year ended (1.81) 0.65 $13.90 19.47% $500,857 0.95% 2.18% 0.95% 39%
Year ended (1.64) 1.65 $15.55 24.14% $697,973 0.92% 1.61% 0.93% 88%
Year ended (1.68) 2.48 $18.03 28.07% $827,828 0.93% 0.77% 0.94% 20%
Year ended (0.93) 2.39 $20.42 18.79% $822,414 0.92% 0.62% 0.93% 9%
Six months ended
(Unaudited) (0.91) (1.28) $19.14 (1.97%)/\/\ $745,458 0.91%/\ 0.39%/\ 0.92%/\ 7%
------------------------------------------------------------------------------------------------------------------------------------
INDEX EQUITY FUND
Ticker Symbol: KNIEX
Year ended (1.82) 1.88 $12.56 36.23% $183,877 0.56% 2.14% 0.56% 3%
Year ended (0.58) 2.15 $14.71 22.18% $243,438 0.49% 1.91% 0.59% 2%
Year ended (0.32) 4.43 $19.14 32.55% $590,241 0.43% 1.44% 0.54% 1%
Year ended (0.28) 5.10 $24.24 28.26% $771,147 0.42% 1.10% 0.55% 12%
Year ended (0.85) 4.07 $28.31 20.55% $875,780 0.42% 0.92% 0.54% 9%
Six months ended
(Unaudited) (0.37) (0.53) $27.78 (0.59%)/\/\ $897,000 0.41%/\ 0.81%/\ 0.53%/\ 5%
------------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
Ticker Symbol: KLCGX
Period ended (0.02) 1.87 $11.87 18.91%/\/\ $183,259 0.97%/\ 0.39%/\ 0.98%/\ --
Six months ended
(Unaudited) (0.03) 0.01 $11.88 0.39%/\/\ $256,710 0.94%/\ 0.32%/\ 0.95%/\ 1%
------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
Ticker Symbol: KNEEX
Year ended (0.91) 1.83 $13.82 23.75% $450,072 0.97% 0.83% ** 30%
Year ended (0.84) 1.83 $15.65 19.56% $544,081 0.96% 0.78% 0.96% 16%
Year ended (1.49) 2.74 $18.39 27.94% $719,998 0.93% 0.24% 0.94% 32%
Year ended (1.88) (2.93) $15.46 (6.15%) $760,335 0.94% 0.18% 0.95% 41%
Year ended (0.35) 3.83 $19.29 27.98% $746,428 0.94% 0.14% 0.95% 19%
Six months ended
(Unaudited) -- 1.31 $20.60 6.79%/\/\ $824,448 0.92%/\ (0.03%)/\ 0.93%/\ 22%
------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
Ticker Symbol: KNINX
Year ended (0.55) 1.12 $14.18 13.00% $286,545 1.17% 1.35% ** 6%
Year ended (0.26) 0.57 $14.75 5.87% $387,799 1.09% 0.97% 1.09% 13%
Year ended (0.23) 0.14 $14.89 2.54% $492,598 1.05% 0.80% 1.06% 3%
Year ended (1.60) 1.02 $15.91 17.92% $528,500 1.05% 0.87% 1.06% 22%
Year ended (0.77) 3.54 $19.45 28.30% $579,650 1.02% 0.72% 1.03% 8%
Six months ended
(Unaudited) (0.32) (1.35) $18.10 (5.38%)/\/\ $593,882 1.00%/\ 0.84%/\ 1.01%/\ 5%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
** During the period, there were no waivers and/or reimbursements.
*** Net investment loss per share was less than $0.005.
/\ Annualized.
/\/\ Not Annualized.
(1) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(2) The Institutional Class of the Large Company Growth Fund commenced
operations on October 19, 1999.
123
<PAGE>
FINANCIAL HIGHLIGHTS
EQUITY FUNDS
INVESTMENT SHARES
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income (Loss) from Investment
Operations Less Dividends and Distributions from
------------------------------- -------------------------------------
Net Realized and Net Realized
Unrealized Gains Gains on
(Losses) on Investments,
Investments, Futures
Net Asset Futures Contracts Total Income In Excess Contracts In Excess
Value, Net and Foreign (Loss) from Net of Net and Foreign of Net
Beginning Investment Currency Investment Investment Investment Currency Realized
of Period Income/(Loss) Translations Operations Income Income Translations Gains
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH AND INCOME FUND
Ticker Symbol: KNVIX
Year ended 1995 $10.46 0.30 3.26 3.56 (0.30) -- (0.53) --
Year ended 1996 $13.19 0.26 2.15 2.41 (0.26) (0.02) (1.51) --
Year ended 1997 $13.81 0.21 3.02 3.23 (0.21) -- (1.39) --
Year ended 1998 $15.44 0.08 4.00 4.08 (0.08) (0.02) (1.54) --
Year ended 1999 $17.88 0.07 3.18 3.25 (0.07) -- (0.81) --
Six months ended
(Unaudited) 2000 $20.25 0.02 (0.40) (0.38) (0.02) -- (0.87) --
------------------------------------------------------------------------------------------------------------------------------------
INDEX EQUITY FUND
Ticker Symbol: KNIOX
Year ended 1995 $10.70 0.23 3.44 3.67 (0.23) -- (1.57) --
Year ended 1996 $12.57 0.22 2.48 2.70 (0.22) (0.01) (0.32) --
Year ended 1997 $14.72 0.20 4.51 4.71 (0.20) (0.01) (0.06) (0.01)
Year ended 1998 $19.15 0.18 5.14 5.32 (0.18) -- (0.04) --
Year ended 1999 $24.25 0.18 4.68 4.68 (0.18) -- (0.61) --
Six months ended
(Unaudited) 2000 $28.32 0.08 (0.28) (0.20) (0.07) -- (0.26) --
------------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND
Ticker Symbol: N/A
Period ended 1999(3) $10.00 -- 1.88 1.88 (0.01) -- (0.01) --
Six months ended
(Unaudited) 2000 $11.86 -- 0.04 0.04 -- -- (0.02) --
------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND
Ticker Symbol: KNEMX
Year ended 1995 $11.98 0.07 2.64 2.71 (0.07) -- (0.81) --
Year ended 1996 $13.81 0.07 2.54 2.61 (0.08) (0.01) (0.72) --
Year ended 1997 $15.61 -- 4.19 4.19 -- (0.04) (1.43) --
Year ended 1998 $18.33 (0.01) (1.08) (1.09) -- -- (1.85) --
Year ended 1999 $15.39 (0.02) 4.15 4.13 -- -- (0.32) (0.01)
Six months ended
(Unaudited) 2000 $19.19 (0.03) 1.31 1.28 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
Ticker Symbol: KNIVX
Year ended 1995 $13.00 0.14 1.50 1.64 (0.09) (0.11) (0.31) --
Year ended 1996 $14.13 0.12 0.66 0.78 (0.08) -- (0.14) --
Year ended 1997 $14.69 0.08 0.25 0.33 (0.06) (0.09) (0.07) (0.01)
Year ended 1998 $14.79 0.10 2.46 2.56 -- (0.19) (1.41) --
Year ended 1999 $15.75 0.08 4.14 4.22 (0.12) -- (0.65) --
Six months ended
(Unaudited) 2000 $19.20 0.06 (1.10) (1.04) (0.01) -- (0.27) --
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less
Dividends
and
Distributions
From Ratios/Supplemental Data
------------- ---------------------------------------------------------------
Ratio of
Net
Total Net Net Asset Net Assets, Ratio of Investment Ratio of
Dividends Change in Value, End of Expenses Income to Expenses Portfolio
and Net Asset End of Total Period to Average Average to Average Turnover
Distributions Value Period Return(1) (000's) Net Assets Net Assets Net Assets* Rate (1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GROWTH AND INCOME
Ticker Symbol: KN
Year ended (0.83) 2.73 $13.19 34.61% $11,079 1.18% 2.48% ** 58%
Year ended (1.79) 0.62 $13.81 19.14% $15,063 1.09% 1.77% 1.09% 39%
Year ended (1.60) 1.63 $15.44 23.89% $35,343 1.17% 1.31% 1.18% 88%
Year ended (1.64) 2.44 $17.88 27.68% $50,458 1.18% 0.50% 1.19% 20%
Year ended (0.88) 2.37 $20.25 18.53% $58,336 1.18% 0.36% 1.19% 9%
Six months ended
(Unaudited) (0.89) (1.27) $18.98 (2.07%)/\/\ $54,415 1.16%/\ 0.14%/\ 1.17%/\ 7%
------------------------------------------------------------------------------------------------------------------------------------
INDEX EQUITY FUND
Ticker Symbol: KN
Year ended (1.80) 1.87 $12.57 35.81% $ 6,612 0.80% 1.86% 0.81% 3%
Year ended (0.55) 2.15 $14.72 21.92% $ 9,925 0.74% 1.67% 0.84% 2%
Year ended (0.28) 4.43 $19.15 32.24% $27,922 0.68% 1.20% 0.79% 1%
Year ended (0.22) 5.10 $24.25 27.93% $38,205 0.67% 0.85% 0.80% 12%
Year ended (0.79) 4.07 $28.32 20.24% $47,836 0.67% 0.67% 0.79% 9%
Six months ended
(Unaudited) (0.33) (0.51) $27.79 (0.71%)/\/\ $43,821 0.66%/\ 0.56%/\ 0.78%/\ 5%
------------------------------------------------------------------------------------------------------------------------------------
LARGE COMPANY GRO
Ticker Symbol: N/
Period ended (0.02) 1.86 $11.86 18.87%/\/\ $ 253 1.23%/\ 0.00%/\ 1.24%/\ --
Six months ended
(Unaudited) (0.02) 0.02 $11.88 0.28%/\/\ $ 577 1.18%/\ 0.07%/\ 1.19%/\ 1%
------------------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY GRO
Ticker Symbol: KN
Year ended (0.88) 1.83 $13.81 23.47% $10,955 1.20% 0.59% ** 30%
Year ended (0.81) 1.80 $15.61 19.16% $14,436 1.21% 0.53% 1.21% 16%
Year ended (1.47) 2.72 $18.33 27.71% $22,784 1.18% (0.01%) 1.19% 32%
Year ended (1.85) (2.94) $15.39 (6.40%) $23,455 1.19% (0.07%) 1.20% 41%
Year ended (0.33) 3.80 $19.19 27.73% $26,282 1.19% (0.11%) 1.20% 19%
Six months ended
(Unaudited) -- 1.28 $20.47 6.67%/\/\ $27,704 1.17%/\ (0.29%)/\ 1.18%/\ 22%
------------------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL GRO
Ticker Symbol: KN
Year ended (0.51) 1.13 $14.13 12.86% $ 7,548 1.40% 1.11% ** 6%
Year ended (0.22) 0.56 $14.69 5.57% $ 8,799 1.34% 0.74% 1.34% 13%
Year ended (0.23) 0.10 $14.79 2.25% $ 9,780 1.30% 0.53% 1.31% 3%
Year ended (1.60) 0.96 $15.75 17.60% $12,390 1.30% 0.59% 1.31% 22%
Year ended (0.77) 3.45 $19.20 27.95% $15,197 1.27% 0.47% 1.28% 8%
Six months ended
(Unaudited) (0.28) (1.32) $17.88 (5.48%)/\/\ $17,806 1.25%/\ 0.59%/\ 1.26%/\ 5%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
** During the period, there were no waivers and/or reimbursements.
/\ Annualized.
/\/\ Not Annualized.
(1) Calculation does not include sales charge. Effective May 1, 1997, the
Investment Shares were not assessed a sales charge.
(2) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shraes issued.
(3) The Investment Class of the Large Company Growth Fund commenced
operations on October 19, 1999.
124
<PAGE>
FINANCIAL HIGHLIGHTS
BOND FUNDS
INSTITUTIONAL SHARES
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income (Loss) from
Investment Operations Less Dividends and Distributions from
---------------------- --------------------------------------------------------
Net
Realized Total
and Income In
Net Asset Unrealized (Loss) In Excess Net Excess
Value, Net Gains from Net of Net Realized of Net Total
Beginning Investment (Losses) on Investment Investment Investment Gains on Realized Dividends and
of Period Income Investments Operations Income Income Investments Gains Distributions
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FUND
Ticker Symbol: KNIIX
Period ended 1995(2) $10.00 0.55 0.92 1.47 (0.54) -- (0.09) -- (0.63)
Year ended 1996 $10.84 0.66 (0.56) 0.10 (0.65) (0.10) (0.03) -- (0.78)
Year ended 1997 $10.16 0.68 0.34 1.02 (0.68) -- (0.20) -- (0.88)
Year ended 1998 $10.30 0.65 0.27 0.92 (0.65) -- (0.24) -- (0.89)
Year ended 1999 $10.33 0.60 (1.05) (0.45) (0.60) -- -- (0.01) (0.61)
Six months ended
(Unaudited) 2000 $ 9.27 0.30 0.03 0.33 (0.30) -- -- -- (0.30)
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Ticker Symbol: KNFIX
Year ended 1995 $ 9.29 0.65 0.81 1.46 (0.63) -- -- -- (0.63)
Year ended 1996 $10.12 0.60 (0.32) 0.28 (0.61) (0.03) -- -- (0.64)
Year ended 1997 $ 9.76 0.59 0.14 0.73 (0.59) -- -- -- (0.59)
Year ended 1998 $ 9.90 0.58 0.16 0.74 (0.58) -- -- -- (0.58)
Year ended 1999 $10.06 0.56 (0.68) (0.12) (0.57) -- -- -- (0.57)
Six months ended
(Unaudited) 2000 $ 9.37 0.30 (0.02) 0.28 (0.29) -- -- -- (0.29)
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND
Ticker Symbol: KNLMX
Year ended 1995 $ 9.52 0.55 0.43 0.98 (0.54) -- -- -- (0.54)
Year ended 1996 $ 9.96 0.61 (0.21) 0.40 (0.61) -- -- -- (0.61)
Year ended 1997 $ 9.75 0.61 -- 0.61 (0.61) -- -- -- (0.61)
Year ended 1998 $ 9.75 0.56 0.02 0.58 (0.56) -- -- -- (0.56)
Year ended 1999 $ 9.77 0.53 (0.29) 0.24 (0.53) -- -- -- (0.53)
Six months ended
(Unaudited) 2000 $ 9.48 0.29 (0.03) 0.26 (0.28) -- -- -- (0.28)
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------
Ratio of Ratio of Ratio of
Net Net Net Expenses Net Expenses
Change Asset Assets, to Investment to
in Net Value, End of Average Income to Average Portfolio
Asset End of Total Period Net Average Net Turnover
Value Period Return (000's) Assets Net Assets Assets* Rate (1)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FUND
Ticker Symbol: KNIIX
Period ended 0.84 $10.84 15.05%/\/\ $126,056 0.91%/\ 6.65%/\ ** 50%/\/\
Year ended (0.68) $10.16 1.19% $240,060 0.83% 6.57% 0.83% 102%
Year ended 0.14 $10.30 10.55% $229,778 0.82% 6.65% 0.83% 84%
Year ended 0.03 $10.33 9.29% $231,017 0.83% 6.25% 0.84% 108%
Year ended (1.06) $ 9.27 (4.41%) $295,017 0.83% 6.25% 0.84% 90%
Six months ended
(Unaudited) 0.03 $ 9.30 3.64%/\/\ $303,439 0.82%/\ 6.59%/\ 0.83%/\ 79%
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Ticker Symbol: KNFIX
Year ended 0.83 $10.12 16.18% $854,801 0.77% 6.50% ** 166%
Year ended (0.36) $ 9.76 3.01% $769,395 0.77% 6.18% 0.78% 135%
Year ended 0.14 $ 9.90 7.80% $762,740 0.75% 6.03% 0.76% 114%
Year ended 0.16 $10.06 7.65% $885,580 0.76% 5.77% 0.77% 106%
Year ended (0.69) $ 9.37 (1.22%) $843,520 0.77% 5.83% 0.78% 84%
Six months ended
(Unaudited) (0.01) $ 9.36 3.09%/\/\ $766,935 0.76%/\ 6.36%/\ 0.77%/\ 81%
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND
Ticker Symbol: KNLMX
Year ended 0.44 $ 9.96 10.53% $310,680 0.77% 5.60% ** 75%
Year ended (0.21) $ 9.75 4.22% $235,430 0.70% 6.17% 0.70% 32%
Year ended -- $ 9.75 6.42% $139,739 0.72% 6.04% 0.73% 89%
Year ended 0.02 $ 9.77 6.14% $139,229 0.76% 5.74% 0.77% 72%
Year ended (0.29) $ 9.48 2.50% $172,204 0.75% 5.56% 0.76% 60%
Six months ended
(Unaudited) (0.02) $ 9.46 2.81%/\/\ $148,874 0.73%/\ 5.99%/\ 0.74%/\ 42%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** During the period, there were no waivers and/or reimbursements.
/\ Annualized.
/\/\Not Annualized.
(1) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(2) The Institutional Class of the Income Fund commenced operations on March
20, 1995.
125
<PAGE>
FINANCIAL HIGHLIGHTS
BOND FUNDS
INVESTMENT SHARES
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income (Loss) from
Investment Operations Less Dividends and Distributions from
---------------------- --------------------------------------------------------
Net
Realized Total
and Income In
Net Asset Unrealized (Loss) In Excess Net Excess
Value, Net Gains from Net of Net Realized of Net Total
Beginning Investment (Losses) on Investment Investment Investment Gains on Realized Dividends and
of Period Income Investments Operations Income Income Investments Gains Distributions
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FUND
Ticker Symbol: KIFIX
Period ended 1995(3) $10.00 0.52 0.91 1.43 (0.52) -- (0.09) -- (0.61)
Year ended 1996 $10.82 0.66 (0.56) 0.10 (0.64) (0.09) (0.03) -- (0.76)
Year ended 1997 $10.16 0.63 0.35 0.98 (0.65) -- (0.20) -- (0.85)
Year ended 1998 $10.29 0.62 0.28 0.90 (0.60) (0.03) (0.24) -- (0.87)
Year ended 1999 $10.32 0.58 (1.06) (0.48) (0.58) -- -- (0.01) (0.59)
Six months ended
(Unaudited) 2000 $ 9.25 0.30 0.03 0.33 (0.29) -- -- -- (0.29)
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Ticker Symbol: KNFVX
Year ended 1995 $ 9.32 0.61 0.82 1.43 (0.61) -- -- -- (0.61)
Year ended 1996 $10.14 0.58 (0.32) 0.26 (0.57) (0.05) -- -- (0.62)
Year ended 1997 $ 9.78 0.57 0.15 0.72 (0.57) -- -- -- (0.57)
Year ended 1998 $ 9.93 0.54 0.16 0.70 (0.55) -- -- -- (0.55)
Year ended 1999 $10.08 0.54 (0.68) (0.14) (0.54) -- -- -- (0.54)
Six months ended
(Unaudited) 2000 $ 9.40 0.28 (0.01) 0.27 (0.28) -- -- -- (0.28)
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND
Ticker Symbol: KNLIX
Year ended 1995 $ 9.52 0.52 0.44 0.96 (0.53) -- -- -- (0.53)
Year ended 1996 $ 9.95 0.59 (0.20) 0.39 (0.54) (0.06) -- -- (0.60)
Year ended 1997 $ 9.74 0.57 0.02 0.59 (0.59) -- -- -- (0.59)
Year ended 1998 $ 9.74 0.55 0.02 0.57 (0.52) (0.03) -- -- (0.55)
Year ended 1999 $ 9.76 0.52 (0.30) 0.22 (0.51) -- -- -- (0.51)
Six months ended
(Unaudited) 2000 $ 9.47 0.27 (0.01) 0.26 (0.27) -- -- -- (0.27)
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------
Ratio of Ratio of Ratio of
Net Net Net Expenses Net Expenses
Change Asset Assets, to Investment to
in Net Value, End of Average Income to Average Portfolio
Asset End of Total Period Net Average Net Turnover
Value Period Return (1) (000's) Assets Net Assets Assets* Rate (2)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME FUND
Ticker Symbol: KIFIX
Period ended 0.82 $10.82 14.63%/\/\ $ 1,961 1.14%/\ 6.40%/\ ** 50%/\/\
Year ended (0.66) $10.16 1.16% $ 2,722 1.08% 6.31% 1.08% 102%
Year ended 0.13 $10.29 10.19% $ 5,611 1.07% 6.38% 1.08% 84%
Year ended 0.03 $10.32 9.04% $10,629 1.08% 5.97% 1.09% 108%
Year ended (1.07) $ 9.25 (4.76%) $10,614 1.08% 5.99% 1.09% 90%
Six months ended
(Unaudited) 0.04 $ 9.29 3.63%/\/\ $ 9,610 1.07%/\ 6.34%/\ 1.08%/\ 79%
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Ticker Symbol: KNFVX
Year ended 0.82 $10.14 15.76% $ 6,862 1.01% 6.24% ** 166%
Year ended (0.36) $ 9.78 2.76% $ 7,327 1.02% 5.92% 1.03% 135%
Year ended 0.15 $ 9.93 7.62% $ 6,972 1.00% 5.79% 1.01% 114%
Year ended 0.15 $10.08 7.26% $12,313 1.01% 5.51% 1.02% 106%
Year ended (0.68) $ 9.40 (1.36%) $11,537 1.02% 5.58% 1.03% 84%
Six months ended
(Unaudited) (0.01) $ 9.39 2.95%/\/\ $11,008 1.01%/\ 6.11%/\ 1.02%/\ 81%
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND
Ticker Symbol: KNLIX
Year ended 0.43 $ 9.95 10.30% $ 1,634 0.91% 5.40% ** 75%
Year ended (0.21) $ 9.74 4.06% $ 1,667 0.85% 6.02% 0.96% 32%
Year ended -- $ 9.74 6.26% $ 7,433 0.88% 5.75% 0.99% 89%
Year ended 0.02 $ 9.76 6.00% $ 6,126 0.91% 5.60% 1.02% 72%
Year ended (0.29) $ 9.47 2.35% $ 4,573 0.90% 5.40% 1.01% 60%
Six months ended
(Unaudited) (0.01) $ 9.46 2.84%/\/\ $ 3,879 0.88%/\ 5.84%/\ 0.99%/\ 42%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** During the period, there were no waivers and/or reimbursements.
/\ Annualized.
/\/\ Not Annualized.
(1) Calculation does not include sales charge. Effective May 1, 1997, the
Investment Shares were not assessed a sales charge.
(2) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(3) The Investment Class of the Income Fund commenced operations on March 22,
1995.
126
<PAGE>
FINANCIAL HIGHLIGHTS
TAX-FREE BOND FUNDS
INSTITUTIONAL SHARES
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income (Loss) from
Investment Operations Less Dividends and Distributions from
---------------------- --------------------------------------------------------
Net
Realized
and
Unrealized Total Net
Gains Income Realized In
Net Asset (Losses) on (Loss) In Excess Gains on Excess
Value, Net Investments from Net of Net Investments of Net Total
Beginning Investment and Futures Investment Investment Investment and Futures Realized Dividends and
of Period Income Contracts Operations Income Income Contracts Gains Distributions
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TAX-FREE INCOME FUND
Ticker Symbol: KNTIX
Period ended 1995(2) $10.00 0.36 0.49 0.85 (0.36) -- -- -- (0.36)
Year ended 1996 $10.49 0.46 (0.06) 0.40 (0.46) -- (0.16) -- (0.62)
Year ended 1997 $10.27 0.45 0.41 0.86 (0.45) -- (0.03) -- (0.48)
Year ended 1998 $10.65 0.44 0.15 0.59 (0.44) -- (0.05) -- (0.49)
Year ended 1999 $10.75 0.45 (0.79) (0.34) (0.45) -- -- (0.01) (0.46)
Six months ended
(Unaudited) 2000 $ 9.95 0.23 0.22 0.45 (0.23) -- -- -- (0.23)
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE TAX-FREE FUND
Ticker Symbol: KNMTX
Year ended 1995 $ 9.74 0.45 0.79 1.24 (0.45) (0.01) -- -- (0.46)
Year ended 1996 $10.52 0.44 (0.08) 0.36 (0.46) ** -- -- (0.46)
Year ended 1997 $10.42 0.45 0.26 0.71 (0.45) -- -- -- (0.45)
Year ended 1998 $10.68 0.45 0.11 0.56 (0.45) -- (0.03) -- (0.48)
Year ended 1999 $10.76 0.44 (0.55) (0.11) (0.44) -- -- (0.01) (0.45)
Six months ended
(Unaudited) 2000 $10.20 0.23 0.11 0.34 (0.23) -- -- -- (0.23)
-----------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND
Ticker Symbol: KNMIX
Year ended 1995 $ 9.72 0.39 0.39 0.78 (0.37) (0.01) -- -- (0.38)
Year ended 1996 $10.12 0.39 (0.04) 0.35 (0.39) -- -- -- (0.39)
Year ended 1997 $10.08 0.41 0.13 0.54 (0.41) -- -- -- (0.41)
Year ended 1998 $10.21 0.40 0.08 0.48 (0.41) -- (0.01) -- (0.42)
Year ended 1999 $10.27 0.41 (0.34) 0.07 (0.41) -- -- -- (0.41)
Six months ended
(Unaudited) 2000 $ 9.93 0.21 0.01 0.22 (0.21) -- -- -- (0.21)
-----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------
Ratio of Ratio of Ratio of
Net Net Net Expenses Net Expenses
Change Asset Assets, to Investment to
in Net Value, End of Average Income to Average Portfolio
Asset End of Total Period Net Average Net Turnover
Value Period Return (000's) Assets Net Assets Assets* Rate (1)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TAX-FREE INCOME FUND
Ticker Symbol: KNTIX
Period ended 0.49 $10.49 8.64%/\/\ $121,855 0.73%/\ 4.44%/\ 0.91%/\ 10%/\/\
Year ended (0.22) $10.27 3.92% $109,948 0.82% 4.38% 0.82% 40%
Year ended 0.38 $10.65 8.59% $116,652 0.79% 4.32% 0.80% 16%
Year ended 0.10 $10.75 5.71% $128,232 0.81% 4.16% 0.82% 53%
Year ended (0.80) $ 9.95 (3.26%) $122,052 0.82% 4.32% 0.83% 109%
Six months ended
(Unaudited) 0.22 $10.17 4.59%/\/\ $139,757 0.79%/\ 4.70%/\ 0.80%/\ 63%
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE TAX-FREE FUND
Ticker Symbol: KNMTX
Year ended 0.78 $10.52 12.90% $283,733 0.72% 4.39% 0.72% 6%
Year ended (0.10) $10.42 3.41% $285,674 0.73% 4.34% 0.73% 35%
Year ended 0.26 $10.68 7.07% $275,641 0.72% 4.31% 0.73% 23%
Year ended 0.08 $10.76 5.37% $296,484 0.73% 4.22% 0.74% 40%
Year ended (0.56) $10.20 (1.01%) $302,948 0.73% 4.22% 0.74% 63%
Six months ended
(Unaudited) 0.11 $10.31 3.37%/\/\ $277,318 0.72%/\ 4.51%/\ 0.73%/\ 22%
-----------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND
Ticker Symbol: KNMIX
Year ended 0.40 $10.12 8.20% $185,466 0.69% 3.81% 0.70% 42%
Year ended (0.04) $10.08 3.51% $152,623 0.70% 3.83% 0.70% 24%
Year ended 0.13 $10.21 5.52% $111,735 0.69% 4.04% 0.70% 13%
Year ended 0.06 $10.27 4.75% $117,957 0.69% 3.97% 0.70% 51%
Year ended (0.34) $ 9.93 0.67% $102,608 0.71% 3.98% 0.72% 14%
Six months ended
(Unaudited) 0.01 $ 9.94 2.23%/\/\ $ 91,914 0.68%/\ 4.21%/\ 0.69%/\ 14%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
** Amount is less than $0.005.
/\ Annualized.
/\/\ Not Annualized.
(1) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(2) The Institutional Class of the Tax-Free Income Fund commenced operations
on March 20, 1995.
127
<PAGE>
FINANCIAL HIGHLIGHTS
TAX-FREE BOND FUNDS
INVESTMENT SHARES
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income (Loss) from
Investment Operations Less Dividends and Distributions from
--------------------------- --------------------------------------------
Net Realized and Total
Unrealized Income Net Realized
Net Asset Gains (Losses) (Loss) In Excess Gains on In Excess
Value, Net on Investments from Net of Net Investments of Net
Beginning Investment and Futures Investment Investment Investment and Futures Realized
of Period Income Contracts Operations Income Income Contracts Gains
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TAX-FREE INCOME FUND
Ticker Symbol: N/A
Period ended 1995(3) $10.00 0.31 0.51 0.82 (0.30) -- -- --
Year ended 1996 $10.52 0.41 (0.05) 0.36 (0.43) -- (0.12) (0.04)
Year ended 1997 $10.29 0.42 0.42 0.84 (0.42) (0.01) (0.03) --
Year ended 1998 $10.67 0.42 0.15 0.57 (0.42) -- (0.05) --
Year ended 1999 $10.77 0.42 (0.78) (0.36) (0.42) -- -- (0.01)
Six months ended
(Unaudited) 2000 $ 9.98 0.22 0.22 0.44 (0.22) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE TAX-FREE FUND
Ticker Symbol: KNMBX
Year ended 1995 $ 9.74 0.42 0.79 1.21 (0.42) (0.01) -- --
Year ended 1996 $10.52 0.42 (0.09) 0.33 (0.41) (0.02) -- --
Year ended 1997 $10.42 0.43 0.26 0.69 (0.43) -- -- --
Year ended 1998 $10.68 0.42 0.11 0.53 (0.42) -- (0.03) --
Year ended 1999 $10.76 0.43 (0.56) (0.13) (0.42) -- -- (0.01)
Six months ended
(Unaudited) 2000 $10.20 0.22 0.11 0.33 (0.22) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND
Ticker Symbol: KNMVX
Year ended 1995 $ 9.72 0.37 0.40 0.77 (0.37) (0.01) -- --
Year ended 1996 $10.11 0.38 (0.05) 0.33 (0.35) (0.02) -- --
Year ended 1997 $10.07 0.39 0.14 0.53 (0.40) -- -- --
Year ended 1998 $10.20 0.39 0.07 0.46 (0.39) -- (0.01) --
Year ended 1999 $10.26 0.39 (0.34) 0.05 (0.39) -- -- --
Six months ended
(Unaudited) 2000 $ 9.92 0.20 0.01 0.21 (0.20) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Less Dividends and
Distributions from Ratios/Supplemental Data
------------------ -------------------------------------------------------
Ratio of
Net
Net Net Asset Net Assets, Ratio of Investment Ratio of
Total Change in Value, End of Expenses Income to Expenses Portfolio
Dividends and Net Asset End of Total Period to Average Average to Average Turnover
Distributions Value Period Return (1) (000's) Net Assets Net Assets Net Assets* Rate (2)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TAX-FREE INCOME FUND
Ticker Symbol: N/A
Period ended (0.30) 0.52 $10.52 8.34%/\/\ $ 529 0.95%/\ 4.25%/\ 1.17%/\ 10%/\/\
Year ended (0.59) (0.23) $10.29 3.53% $ 936 1.07% 4.14% 1.07% 40%
Year ended (0.46) 0.38 $10.67 8.32% $1,712 1.04% 4.05% 1.05% 16%
Year ended (0.47) 0.10 $10.77 5.43% $1,938 1.06% 3.91% 1.07% 53%
Year ended (0.43) (0.79) $ 9.98 (3.40%) $1,554 1.07% 4.05% 1.08% 109%
Six months ended
(Unaudited) (0.22) 0.22 $10.20 4.45%/\/\ $1,629 1.04%/\ 4.45%/\ 1.05%/\ 63%
---------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE TAX-FREE FUND
Ticker Symbol: KNMBX
Year ended (0.43) 0.78 $10.52 12.66% $3,807 0.97% 4.13% 0.97% 6%
Year ended (0.43) (0.10) $10.42 3.17% $3,368 0.98% 4.09% 0.98% 35%
Year ended (0.43) 0.26 $10.68 6.80% $3,534 0.97% 4.06% 0.98% 23%
Year ended (0.45) 0.08 $10.76 5.09% $4,038 0.98% 3.97% 0.99% 40%
Year ended (0.43) (0.56) $10.20 (1.27%) $3,745 0.98% 3.97% 0.99% 63%
Six months ended
(Unaudited) (0.22) 0.11 $10.31 3.24%/\/\ $2,721 0.97%/\ 4.26%/\ 0.98%/\ 22%
---------------------------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND
Ticker Symbol: KNMVX
Year ended (0.38) 0.39 $10.11 8.01% $1,900 0.83% 3.68% 0.85% 42%
Year ended (0.37) (0.04) $10.07 3.36% $2,422 0.85% 3.68% 0.95% 24%
Year ended (0.40) 0.13 $10.20 5.38% $4,413 0.84% 3.88% 0.95% 13%
Year ended (0.40) 0.06 $10.26 4.60% $5,946 0.84% 3.82% 0.95% 51%
Year ended (0.39) (0.34) $ 9.92 0.51% $4,378 0.86% 3.83% 0.97% 14%
Six months ended
(Unaudited) (0.20) 0.01 $ 9.93 2.16%/\/\ $3,539 0.83%/\ 4.06%/\ 0.94%/\ 14%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratio would have been as
indicated.
/\ Annualized.
/\/\ Not Annualized.
(1) Calculation does not include sales charge. Effective May 1, 1997, the
Investment Shares were not assessed a sales charge.
(2) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(3) The Investment Class of the Tax-Free Income Fund commenced operations on
March 31, 1995.
128
<PAGE>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
INSTITUTIONAL SHARES
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income
(Loss) from
Investment Less
Net Asset Operations: Dividends Net Net Asset
Value, Net from Net Change in Value,
Beginning Investment Investment Net Asset End of Total
of Period Income Income Value Period Return
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUND
Ticker Symbol: KIMXX
Year ended 1995 $1.000 0.050 (0.050) -- $1.000 5.58%
Year ended 1996 $1.000 0.050 (0.050) -- $1.000 5.06%
Year ended 1997 $1.000 0.051 (0.051) -- $1.000 5.23%
Year ended 1998 $1.000 0.050 (0.050) -- $1.000 5.13%
Year ended 1999 $1.000 0.047 (0.047) -- $1.000 4.80%
Six months ended
(Unaudited) 2000 $1.000 0.028 (0.028) -- $1.000 2.82%/\/\
--------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Ticker Symbol: KGIXX
Period ended 1997(1) $1.000 0.031 (0.031) -- $1.000 3.10%/\/\
Year ended 1998 $1.000 0.051 (0.051) -- $1.000 5.17%
Year ended 1999 $1.000 0.047 (0.047) -- $1.000 4.81%
Six months ended
(Unaudited) 2000 $1.000 0.028 (0.028) -- $1.000 2.81%/\/\
--------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
Ticker Symbol: KMIXX
Year ended 1995 $1.000 0.030 (0.030) -- $1.000 3.50%
Year ended 1996 $1.000 0.030 (0.030) -- $1.000 3.11%
Year ended 1997 $1.000 0.033 (0.033) -- $1.000 3.31%
Year ended 1998 $1.000 0.030 (0.030) -- $1.000 3.06%
Year ended 1999 $1.000 0.028 (0.028) -- $1.000 2.86%
Six months ended
(Unaudited) 2000 $1.000 0.017 (0.017) -- $1.000 1.76%/\/\
--------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio of
Net
Net Assets, Ratio of Investment Ratio of
End of Expenses Income to Expenses
Period to Average Average to Average
(000's) Net Assets Net Assets Net Assets*
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MONEY MARKET FUND
Ticker Symbol: KIMXX
Year ended $424,815 0.55% 5.45% 0.63%
Year ended $483,919 0.52% 4.95% 0.62%
Year ended $474,378 0.52% 5.11% 0.62%
Year ended $693,399 0.55% 5.00% 0.64%
Year ended $654,771 0.54% 4.70% 0.63%
Six months ended
(Unaudited) $681,618 0.54%/\ 5.61%/\ 0.63%/\
--------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Ticker Symbol: KGIXX
Period ended $ 94,624 0.35%/\ 5.23%/\ 0.69%/\
Year ended $166,922 0.38% 5.03% 0.69%
Year ended $215,401 0.37% 4.73% 0.65%
Six months ended
(Unaudited) $266,954 0.38%/\ 5.61%/\ 0.63%/\
--------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
Ticker Symbol: KMIXX
Year ended $145,215 0.56% 3.45% 0.65%
Year ended $155,424 0.54% 3.06% 0.64%
Year ended $211,682 0.52% 3.27% 0.63%
Year ended $323,272 0.54% 3.00% 0.64%
Year ended $292,619 0.53% 2.82% 0.63%
Six months ended
(Unaudited) $270,138 0.52%/\ 3.51%/\ 0.62%/\
--------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
/\ Annualized.
/\/\ Not Annualized.
(1) The Institutional Class of the Government Money Market Fund commenced
operations on June 2, 1997.
129
<PAGE>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
INVESTMENT SHARES
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from
Investment Less
Net Asset Operations: Dividends Net Net Asset Net Assets,
Value, Net from Net Change in Value, End of
Beginning Investment Investment Net Asset End of Total Period
of Period Income Income Value Period Return (000's)
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUND
Ticker Symbol: N/A
Year ended 1995 $1.000 0.050 (0.050) -- $1.000 5.56% $1,227
Year ended 1996 $1.000 0.050 (0.050) -- $1.000 5.06% $ 804
Year ended 1997 $1.000 0.051 (0.051) -- $1.000 5.23% $1,179
Year ended 1998 $1.000 0.050 (0.050) -- $1.000 5.13% $3,728
Year ended 1999 $1.000 0.047 (0.047) -- $1.000 4.80% $2,141
Six months ended
(Unaudited) 2000 $1.000 0.030 (0.030) -- $1.000 2.82%/\/\ $1,509
--------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Ticker Symbol: N/A
Period ended 1997(1) $1.000 0.030 (0.030) -- $1.000 3.06%/\/\ $ 2
Year ended 1998 $1.000 0.051 (0.051) -- $1.000 5.17% $ 93
Year ended 1999 $1.000 0.047 (0.047) -- $1.000 4.81% $ 120
Six months ended
(Unaudited) 2000 $1.000 0.030 (0.030) -- $1.000 2.81%/\/\ $ 104
--------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
Ticker Symbol: N/A
Year ended 1995 $1.000 0.030 (0.030) -- $1.000 3.48% $1,603
Year ended 1996 $1.000 0.030 (0.030) -- $1.000 3.11% $ 782
Year ended 1997 $1.000 0.033 (0.033) -- $1.000 3.31% $ 289
Year ended 1998 $1.000 0.030 (0.030) -- $1.000 3.06% $ 346
Year ended 1999 $1.000 0.028 (0.028) -- $1.000 2.86% $ 658
Six months ended
(Unaudited) 2000 $1.000 0.020 (0.020) -- $1.000 1.76%/\/\ $ 182
--------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
---------------------------------
Ratio of
Net
Ratio of Investment Ratio of
Expenses Income to Expenses
to Average Average to Average
Net Assets Net Assets Net Assets*
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND
Ticker Symbol: N/A
Year ended 0.55% 5.41% 0.62%
Year ended 0.52% 4.94% 0.62%
Year ended 0.52% 5.11% 0.62%
Year ended 0.55% 5.00% 0.64%
Year ended 0.55% 4.71% 0.63%
Six months ended
(Unaudited) 0.54%/\ 5.58%/\ 0.63%/\
--------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Ticker Symbol: N/A
Period ended 0.43%/\ 5.17%/\ 0.77%/\
Year ended 0.38% 4.92% 0.69%
Year ended 0.37% 4.71% 0.65%
Six months ended
(Unaudited) 0.38%/\ 5.58%/\ 0.63%/\
--------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL MONEY MARKET FUND
Ticker Symbol: N/A
Year ended 0.54% 3.48% 0.62%
Year ended 0.54% 3.06% 0.64%
Year ended 0.52% 3.22% 0.63%
Year ended 0.54% 3.02% 0.64%
Year ended 0.53% 2.82% 0.63%
Six months ended
(Unaudited) 0.52%/\ 3.31%/\ 0.62%/\
--------------------------------------------------------------------------------------------------
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
/\ Annualized.
/\/\ Not Annualized.
(1) The Investment Class of the Government Money Market Fund commenced
operations on June 2, 1997.
130
<PAGE>
[LOGO OF KENT FUNDS]
KENT FUNDS
P.O. Box 182201
Columbus, Ohio 43218-2201
KKF-1391 (8/00)
