<PAGE>
[LOGO] Heartland Funds
----------------------
AMERICA'S VALUE INVESTOR(R)
Select Value Fund
Value Plus Fund
Value Fund
Taxable Short Duration Municipal Fund
Short Duration High-Yield Fund
High-Yield Municipal Bond Fund
Wisconsin Tax Free Fund
(Wisconsin residents only)
SEMI - ANNUAL | JULY 1, 2000
<PAGE>
Table of Contents
<TABLE>
<S> <C>
EQUITY FUNDS
---------------------------------------------------------------------------------------------------
Letter to Shareholders............................................................ 2
Select Value Fund Management's Discussion of Fund Performance..................... 4
Value Plus Fund Management's Discussion of Fund Performance....................... 6
Value Fund Management's Discussion of Fund Performance............................ 8
Equity Fund Financial Statements
Schedule of Investments....................................................... 10
Statements of Assets and Liabilities.......................................... 16
Statements of Operations...................................................... 17
Statements of Changes in Net Assets........................................... 18
Financial Highlights.......................................................... 19
FIXED INCOME FUNDS
---------------------------------------------------------------------------------------------------
Letter to Shareholders............................................................ 22
Taxable Short Duration Municipal Fund Management's Discussion of
Fund Performance.................................................................. 24
Short Duration High-Yield Municipal Fund Management's Discussion of
Fund Performance.................................................................. 26
High-Yield Municipal Bond Fund Management's Discussion of Fund Performance........ 28
Wisconsin Tax Free Fund Management's Discussion of Fund Performance............... 30
Fixed Income Fund Financial Statements
Schedule of Investments....................................................... 32
Statements of Assets and Liabilities.......................................... 45
Statements of Operations...................................................... 46
Statements of Changes in Net Assets........................................... 47
Financial Highlights.......................................................... 48
ADDITIONAL INFORMATION
---------------------------------------------------------------------------------------------------
Notes to Financial Statements..................................................... 52
Definitions....................................................................... 58
</TABLE>
<PAGE>
DEAR SHAREHOLDER
--------------------------------------------------------------------------------
[PHOTO]
Hallelujah!
For the first half of the year, small-cap stocks are outperforming and small-cap
investors across the land are rejoicing:
Russell 2000 Index +3.04%
S&P 500 Index -0.42
Nasdaq Index -2.54
Dow Jones Ind. Avg. -8.43
This resurgence in small-cap stocks has been a long time in coming. As measured
by the Russell 2000 Index versus the S&P 500 Index, small company stocks
underperformed their larger cap brethren for more than six years, from the
Spring of 1993 through the fall of last year.
The million dollar question investors keep asking -- "Is this the start of a
multi-year period of outperformance for small-cap stocks?" We think so.
Take a look at the chart below which details the relative performance of small
capitalization stocks versus large-cap stocks all the way back to 1960.
Are Small/Micro Caps Staging A Rebound?
Relative Performance of Small Caps vs. Large Caps*
Through June 30, 2000
"60" 48.29
47.75
46.98
46.48
45.36
45.30
45.59
46.08
46.18
45.19
44.03
43.32
44.36
45.11
46.32
46.76
47.61
46.68
45.47
44.78
44.11
44.01
44.14
44.22
"62" 46.48
46.40
46.65
46.35
45.51
45.70
45.97
46.71
45.63
43.26
43.53
41.56
43.19
43.39
42.44
41.26
41.95
42.30
42.20
41.38
41.56
40.73
40.23
38.98
"64" 39.41
39.62
39.85
39.51
38.95
38.85
39.21
39.42
39.91
40.47
40.45
39.73
40.80
41.50
42.81
43.11
42.88
41.20
41.61
41.99
41.80
43.27
45.22
46.62
"66" 49.16
51.53
52.01
53.29
50.80
51.19
50.94
49.29
48.70
45.19
46.33
46.90
51.14
53.22
54.34
54.40
56.38
60.53
63.11
63.73
66.42
67.02
66.49
70.77
"68" 76.19
73.93
72.38
76.64
83.08
82.97
82.44
84.51
86.41
85.60
86.57
91.50
91.63
87.56
86.88
84.93
85.25
79.85
76.00
75.66
74.92
78.14
75.25
70.97
"70" 74.50
72.91
70.75
65.08
62.99
60.92
59.60
60.18
65.64
62.20
58.56
60.17
65.74
68.20
68.98
68.30
66.68
64.79
63.30
63.24
63.63
62.15
59.38
61.22
"72" 66.89
67.37
66.44
66.14
63.47
62.51
60.37
58.37
56.58
54.74
54.64
52.91
52.27
50.25
49.21
47.65
44.32
43.01
46.23
44.78
46.12
46.09
42.32
40.01
"74" 46.21
45.86
46.91
46.16
44.27
43.90
44.65
44.40
45.78
42.74
41.61
38.80
45.97
44.43
47.76
46.63
47.23
48.75
51.20
48.91
48.71
46.49
46.25
46.15
"76" 50.78
57.22
55.90
55.15
53.92
53.12
53.31
52.28
52.03
51.81
52.80
55.09
59.34
59.56
60.62
61.02
61.43
62.66
63.78
63.52
64.39
65.17
68.20
68.60
"78" 72.00
74.89
78.54
78.69
82.36
83.32
83.05
87.67
87.82
75.60
77.87
77.25
82.05
82.38
84.96
86.49
87.14
87.48
87.92
89.41
88.20
84.33
85.65
89.45
"80" 93.17
90.66
83.49
84.18
84.86
85.29
89.35
94.04
94.04
95.73
91.05
91.14
96.81
96.33
100.51
105.34
107.14
107.88
104.73
101.99
100.00
103.09
102.29
103.39
"82" 101.37
102.19
101.71
102.79
103.60
101.48
102.12
98.40
101.18
104.01
109.19
108.72
113.08
117.59
116.68
116.32
125.98
127.03
127.42
120.94
121.62
114.81
118.51
117.08
"84" 116.00
113.58
112.48
111.05
111.67
112.61
108.73
109.59
108.90
106.73
105.26
104.37
109.89
111.58
109.40
108.41
106.40
106.13
109.51
109.51
106.41
105.77
106.02
105.72
"86" 107.02
106.87
106.28
109.29
107.51
105.75
101.72
97.80
100.18
98.66
96.11
95.88
94.43
98.55
98.34
96.52
95.46
93.21
91.44
91.24
91.28
80.78
83.42
83.82
"88" 83.79
87.40
94.44
95.44
92.75
95.14
94.76
95.85
94.30
90.78
89.24
91.26
88.95
92.03
92.10
91.46
92.04
90.56
86.72
87.21
87.87
84.63
83.60
81.92
"90" 80.10
81.73
82.79
82.19
80.42
81.24
78.00
74.39
71.22
67.23
68.07
68.85
72.10
74.97
78.39
78.19
78.68
77.58
76.63
77.90
79.88
81.06
80.84
78.32
"92" 86.32
88.00
86.79
81.35
82.20
79.47
78.95
78.42
79.42
81.71
85.25
87.24
89.41
86.27
87.28
87.01
88.89
89.08
90.75
91.34
94.80
95.28
93.26
95.35
"94" 95.18
96.75
96.87
96.33
93.92
93.02
91.60
93.08
95.20
92.88
92.59
93.76
90.25
90.54
89.39
88.94
87.14
89.55
91.71
93.45
91.34
87.62
87.67
88.24
"96" 85.28
87.26
88.13
91.57
93.01
88.89
84.93
88.08
86.68
83.05
80.45
84.19
80.83
78.30
77.82
73.62
77.20
77.02
74.70
80.97
82.40
81.47
77.39
77.45
"98" 75.45
75.70
75.04
74.70
72.00
69.38
64.42
60.72
61.49
59.20
58.79
59.04
57.42
54.48
53.16
55.73
57.96
57.34
57.57
55.73
57.29
54.09
56.23
59.09
"0/00" 61.20
72.72
61.87
59.95
57.65
61.16
*Based on Russell 2000 and the S&P 500 Indexes.
Source: Schroder & Co. and The Leuthold Group
Note that when the relative strength line is going down, 1994-1999 for example,
small stocks are underperforming. When the line is going up, such as it did in
1991-1993, small stocks are leading.
Over these past 40 years, a pattern of rotation in leadership between small-caps
and large-caps seems to occur. Periods of small stock underperformance have set
the stage for periods of outperformance.
2 | Semi-Annual: July 1, 2000
<PAGE>
--------------------------------------------------------------------------------
For example, a long period of underperformance in the early 1970's by small
stocks was followed by a huge outperformance run from 1975-1983.
If this pattern continues, we believe the next major period of outperformance
will favor small capitalization stocks. Why not? After six years of famine, will
there be six years of feast?
Valuations would seem to support this turn. In a time when the valuations of
many large-cap growth stocks seem to be in question, we think the smaller end of
the capitalization spectrum offers up some amazing bargains. Our 13-person
research team has identified many promising high quality small-cap names. In
some cases, we're seeing industry leaders with sales in the billions, but market
caps in the millions.
The graph at the right vividly points out how cheap small-caps are compared to
large-caps. The relative P/E ratio for small stocks is currently at 50%--the
lowest in 25 years. In our view, small-caps clearly offer significantly more
upside potential than large-caps.
As the following table indicates, Heartland's three equity funds currently have
low median market capitalizations, so each fund is positioned to take advantage
of a sustained resurgence in the smaller capitalization sector of the stock
market.
Median Market Caps as of 6/30/00:
Value Fund $96 million
Value Plus Fund 99 million
Select Value Fund 1.5 billion
In our opinion, the rebound in small-cap stocks has just begun and it's time for
small-cap value investors to be optimistic. Valuations are very appealing, and
we are confident that our portfolios are well positioned with the potential to
generate attractive long-term returns for patient investors.
Sincerely,
/s/ Bill Nasgovitz
William J. Nasgovitz
Small Means Cheap
[CHART]
weighted median Ratio
P/E P/E
12/31/71
1/7/72
1/14/72 DO NOT DELETE
1/21/72
1/28/72
2/4/72
2/11/72
2/18/72
2/25/72
3/3/72
3/10/72
3/17/72
3/24/72
3/31/72
4/7/72
4/14/72
4/21/72
4/28/72
5/5/72
5/12/72
5/19/72 DO NOT DELETE
5/26/72
6/2/72
6/9/72
6/16/72
6/23/72
6/30/72
7/7/72
7/14/72
7/21/72
7/28/72
8/4/72
8/11/72
8/18/72
8/25/72 14.12 19.4 72.8%
9/1/72 13.98 19.5 71.7%
9/8/72 13.73 19.5 70.4%
9/15/72 13.73 19.5 70.4%
9/22/72 13.68 19.4 70.5%
9/29/72 13.47 19.3 69.8%
10/6/72 13.40 19.2 69.8%
10/13/72 13.26 19.3 68.7%
10/20/72 13.25 19.2 69.0%
10/27/72 12.73 18.5 68.8%
11/3/72 13.15 18.9 69.6%
11/10/72 13.28 19 69.9%
11/17/72 13.19 19.2 68.7%
11/24/72 13.16 19.3 68.2%
12/1/72 13.19 19.4 68.0%
12/8/72 13.28 19.7 67.4%
12/15/72 13.68 19.8 69.1%
12/22/72 13.56 19.6 69.2%
12/29/72 13.46 19.5 69.0%
1/5/73 13.15 19.4 67.8%
1/12/73 13.21 19.6 67.4%
1/19/73 13.19 19.6 67.3%
1/26/73 13.27 19.9 66.7%
73 13.10 19.7 66.5%
2/9/73 12.86 19.6 65.6%
2/16/73 12.48 19.2 65.0%
2/23/73 12.05 18.4 65.5%
3/2/73 11.77 18 65.4%
3/9/73 11.61 17.8 65.2%
3/16/73 11.58 17.9 64.7%
3/23/73 10.97 17.2 63.8%
3/30/73 11.05 17.3 63.9%
4/6/73 10.78 17.2 62.7%
4/13/73 10.92 17.2 63.5%
4/20/73 10.37 16.7 62.1%
4/27/73 10.40 16.5 63.0%
5/4/73 10.15 16.3 62.3%
5/11/73 9.98 16.3 61.2%
5/18/73 9.96 16.2 61.5%
5/25/73 9.52 16 59.5%
6/1/73 9.60 15.9 60.4%
6/8/73 9.34 15.7 59.5%
6/15/73 9.39 15.6 60.2%
6/22/73 9.86 16.4 60.1%
6/29/73 9.36 15.2 61.6%
7/6/73 9.13 15.3 59.7%
7/13/73 9.03 15 60.2%
7/20/73 8.79 14.5 60.6%
7/27/73 8.89 14.6 60.9%
8/3/73 8.86 14.5 61.1%
8/10/73 8.86 14.6 60.7%
8/17/73 8.92 14.8 60.3%
8/24/73 9.18 15.2 60.4%
8/31/73 9.47 15.4 61.5%
9/7/73 9.28 14.8 62.7%
9/14/73 9.33 14.9 62.6%
9/21/73 9.23 14.6 63.2%
9/28/73 9.09 14.1 64.5%
10/5/73 9.13 14.2 64.3%
10/12/73 9.05 14.1 64.2%
10/19/73 9.17 14.3 64.1%
10/26/73 9.22 14.5 63.6%
11/2/73 9.25 14.8 62.5%
11/9/73 9.27 15.1 61.4%
11/16/73 8.91 14.8 60.2%
11/23/73 8.55 14.4 59.4%
11/30/73 8.06 13.8 58.4%
12/7/73 7.67 13.3 57.7%
12/14/73 7.31 12.9 56.7%
12/21/73 6.98 12.5 55.8%
12/28/73 6.96 12 58.0%
1/4/74 7.69 12.4 62.0%
1/11/74 7.80 12.6 61.9%
1/18/74 7.96 12.8 62.2%
1/25/74 7.73 12 64.4%
'74 7.91 12.3 64.3%
2/8/74 7.94 12 66.2%
2/15/74 7.55 11.6 65.1%
2/22/74 7.30 11.3 64.6%
3/1/74 7.49 11.4 65.7%
3/8/74 7.53 11.5 65.5%
3/15/74 7.89 11.9 66.3%
3/22/74 8.00 12.1 66.1%
3/29/74 7.91 11.9 66.5%
4/5/74 7.58 11.4 66.5%
4/12/74 7.64 11.5 66.4%
4/19/74 7.63 11.3 67.5%
4/26/74 7.59 11.4 66.6%
5/3/74 7.27 11.1 65.5%
5/10/74 7.08 10.8 65.6%
5/17/74 6.73 10.5 64.1%
5/24/74 6.93 10.7 64.8%
5/31/74 6.51 10.2 63.8%
6/7/74 6.31 9.9 63.7%
6/14/74 6.42 10.1 63.6%
6/21/74 6.68 10.4 64.2%
6/28/74 6.41 10 64.1%
7/5/74 6.36 9.9 64.2%
7/12/74 6.11 9.5 64.3%
7/19/74 5.79 9 64.3%
7/26/74 6.16 9.2 67.0%
8/2/74 5.56 8.4 66.2%
8/9/74 5.94 8.7 68.3%
8/16/74 5.57 8.2 67.9%
8/23/74 5.34 8 66.8%
8/30/74 5.16 7.8 66.2%
9/6/74 5.15 7.5 68.6%
9/13/74 4.74 7.55 62.8%
9/20/74 4.74 7.05 67.3%
9/27/74 5.27 7.5 70.3%
10/4/74 4.85 7.2 67.4%
10/11/74 4.57 6.75 67.7%
10/18/74 4.90 7.2 68.1%
10/25/74 4.91 7.5 65.5%
11/1/74 4.75 7.4 64.2%
11/8/74 4.90 7.6 64.5%
11/15/74 4.67 7.2 64.8%
11/22/74 4.68 7.4 63.2%
11/29/74 4.42 6.95 63.6%
12/6/74 4.23 7 60.4%
12/13/74 4.20 6.95 60.5%
12/20/74 4.23 7 60.4%
12/27/74 4.41 7.00 63.0%
1/3/75 4.62 7.00 66.0%
1/10/75 4.97 7.20 69.0%
1/17/75 5.08 7.25 70.1%
1/24/75 5.45 7.35 74.1%
'75 5.66 7.46 75.9%
2/7/75 5.72 7.95 71.9%
2/14/75 5.79 8.30 69.8%
2/21/75 5.85 8.60 68.0%
2/28/75 6.03 8.75 68.9%
3/7/75 6.20 8.68 71.4%
3/14/75 6.29 9.00 69.9%
3/21/75 6.22 9.12 68.2%
3/28/75 6.30 9.00 70.0%
4/4/75 6.49 8.97 72.4%
4/11/75 6.51 8.90 73.1%
4/18/75 6.64 9.10 73.0%
4/25/75 6.80 9.40 72.3%
5/2/75 6.87 9.70 70.8%
5/9/75 6.81 9.85 69.1%
5/16/75 6.95 10.00 69.5%
5/23/75 7.09 10.20 69.5%
5/30/75 7.02 10.40 67.5%
6/6/75 7.20 10.62 67.8%
6/13/75 7.41 10.50 70.6%
6/20/75 7.42 10.90 68.1%
6/27/75 7.72 11.00 70.2%
7/4/75 7.55 11.06 68.3%
7/11/75 7.30 10.93 66.8%
7/18/75 7.25 10.77 67.3%
7/25/75 7.06 10.60 66.6%
8/1/75 6.98 10.50 66.5%
8/8/75 6.62 10.40 63.7%
8/15/75 6.88 10.15 67.8%
8/22/75 6.80 10.34 65.8%
8/29/75 6.76 10.45 64.7%
9/5/75 6.63 10.45 63.4%
9/12/75 6.84 10.45 65.5%
9/19/75 6.85 10.34 66.2%
9/26/75 6.87 10.28 66.8%
10/3/75 6.90 10.37 66.5%
10/10/75 6.90 10.30 67.0%
10/17/75 6.90 10.40 66.3%
10/24/75 6.90 10.50 65.7%
10/31/75 6.90 10.70 64.5%
11/7/75 6.90 10.80 63.9%
11/14/75 6.89 11.04 62.4%
11/21/75 6.70 10.95 61.2%
11/28/75 6.65 11.07 60.1%
12/5/75 6.60 10.90 60.6%
12/12/75 6.60 10.80 61.1%
12/19/75 6.65 10.90 61.0%
12/26/75 6.70 11.00 60.9%
1/2/76 6.79 11.10 61.2%
1/9/76 7.21 11.23 64.2%
1/16/76 7.40 11.38 65.0%
1/23/76 7.68 11.50 66.8%
'76 7.87 11.60 67.8%
2/6/76 8.11 11.80 68.7%
2/13/76 8.25 12.10 68.2%
2/20/76 8.51 12.18 69.9%
2/27/76 8.47 12.36 68.5%
3/5/76 8.41 12.43 67.7%
3/12/76 8.40 12.28 68.4%
3/19/76 8.32 12.35 67.4%
3/26/76 8.33 12.28 67.8%
4/2/76 8.26 12.38 66.7%
4/9/76 8.15 12.33 66.1%
4/16/76 8.10 12.36 65.5%
4/23/76 8.20 12.17 67.4%
4/30/76 7.95 12.20 65.2%
5/7/76 7.83 11.89 65.9%
5/14/76 7.92 11.95 66.3%
5/21/76 7.75 11.43 67.8%
5/28/76 7.60 11.52 66.0%
6/4/76 7.59 11.40 66.6%
6/11/76 7.65 11.43 66.9%
6/18/76 7.71 11.39 67.7%
6/25/76 7.71 11.30 68.2%
7/2/76 7.70 11.27 68.3%
7/9/76 7.70 11.23 68.6%
7/16/76 7.60 11.40 66.7%
7/23/76 7.60 11.48 66.2%
7/30/76 7.70 11.44 67.3%
8/6/76 7.75 11.48 67.5%
8/13/76 7.80 11.53 67.6%
8/20/76 7.88 11.62 67.8%
8/27/76 7.60 11.49 66.1%
9/3/76 7.60 11.30 67.3%
9/10/76 7.60 11.20 67.9%
9/17/76 7.60 10.98 69.2%
9/24/76 7.50 11.17 67.1%
10/1/76 7.31 11.20 65.3%
10/8/76 7.40 11.22 66.0%
10/15/76 7.50 11.35 66.1%
10/22/76 7.52 11.40 66.0%
10/29/76 7.60 10.60 71.7%
11/5/76 7.50 10.50 71.4%
11/12/76 7.22 10.50 68.8%
11/19/76 7.21 10.20 70.7%
11/26/76 7.20 10.40 69.2%
12/3/76 7.15 10.45 68.4%
12/10/76 7.10 10.53 67.4%
12/17/76 7.25 10.60 68.4%
12/24/76 7.30 10.80 67.6%
12/31/76 7.40 10.90 67.9%
1/7/77 8.00 10.80 74.1%
1/14/77 8.00 10.60 75.5%
1/21/77 8.00 10.40 76.9%
'77 8.00 10.20 78.4%
2/4/77 7.90 10.10 78.2%
2/11/77 7.90 10.03 78.8%
2/18/77 7.80 10.00 78.0%
2/25/77 7.80 10.05 77.6%
3/4/77 7.80 10.09 77.3%
3/11/77 7.90 10.16 77.8%
3/18/77 7.80 10.06 77.5%
3/25/77 7.70 9.80 78.6%
4/1/77 7.70 9.88 77.9%
4/8/77 7.90 9.91 79.7%
4/15/77 7.70 9.80 78.6%
4/22/77 7.90 9.92 79.6%
4/29/77 7.80 9.97 78.2%
5/6/77 7.90 9.80 80.6%
5/13/77 7.70 9.80 78.6%
5/20/77 7.70 9.70 79.4%
5/27/77 7.80 9.50 82.1%
6/3/77 7.80 9.55 81.7%
6/10/77 7.80 9.60 81.3%
6/17/77 8.00 9.84 81.3%
6/24/77 8.00 9.81 81.5%
7/1/77 8.00 9.85 81.2%
7/8/77 8.10 9.74 83.2%
7/15/77 8.00 9.60 83.3%
7/22/77 7.90 9.56 82.6%
7/29/77 7.90 9.52 83.0%
8/5/77 7.80 9.42 82.8%
8/12/77 7.70 9.36 82.3%
8/19/77 7.70 9.40 81.9%
8/26/77 7.70 9.28 83.0%
9/2/77 7.60 9.30 81.7%
9/9/77 7.50 9.37 80.0%
9/16/77 7.50 9.40 79.8%
9/23/77 7.60 9.30 81.7%
9/30/77 7.40 9.20 80.4%
10/7/77 7.40 9.10 81.3%
10/14/77 7.30 9.15 79.8%
10/21/77 7.30 9.20 79.3%
10/28/77 7.40 8.80 84.1%
11/4/77 7.40 8.60 86.0%
11/11/77 7.35 8.65 85.0%
11/18/77 7.30 8.73 83.6%
11/25/77 7.40 8.80 84.1%
12/2/77 7.40 9.06 81.7%
12/9/77 7.60 8.95 84.9%
12/16/77 7.70 8.97 85.8%
12/23/77 7.60 8.88 85.6%
12/30/77 7.60 8.90 85.4%
1/6/78 7.60 8.80 86.4%
1/13/78 7.30 8.70 83.9%
1/20/78 7.40 8.60 86.0%
'78 7.40 8.50 87.1%
2/3/78 7.50 8.58 87.4%
2/10/78 7.40 8.50 87.1%
2/17/78 7.30 8.40 86.9%
2/24/78 7.30 8.30 88.0%
3/3/78 7.30 8.25 88.5%
3/10/78 7.30 8.23 88.7%
3/17/78 7.50 8.27 90.7%
3/24/78 7.50 8.30 90.4%
3/31/78 7.65 8.38 91.3%
4/7/78 8.00 8.43 94.9%
4/14/78 8.20 8.50 96.5%
4/21/78 8.30 8.60 96.5%
4/28/78 8.40 8.67 96.9%
5/5/78 8.60 8.80 97.7%
5/12/78 8.70 9.06 96.0%
5/19/78 8.60 9.00 95.6%
5/26/78 8.70 9.10 95.6%
6/2/78 8.75 9.13 95.8%
6/9/78 8.80 9.16 96.1%
6/16/78 8.80 9.19 95.8%
6/23/78 8.50 8.97 94.8%
6/30/78 8.40 8.89 94.5%
7/7/78 8.30 8.78 94.5%
7/14/78 8.50 8.93 95.2%
7/21/78 8.60 9.01 95.4%
7/28/78 8.80 9.07 97.0%
8/4/78 8.90 9.36 95.1%
8/11/78 9.00 9.40 95.7%
8/18/78 9.10 9.50 95.8%
8/25/78 9.00 9.60 93.8%
9/1/78 9.20 9.37 98.2%
9/8/78 9.30 9.55 97.4%
9/15/78 8.80 9.55 92.1%
9/22/78 8.80 9.22 95.4%
9/29/78 8.90 9.23 96.4%
10/6/78 9.00 9.34 96.4%
10/13/78 8.40 9.41 89.3%
10/20/78 7.70 8.82 87.3%
10/27/78 7.50 8.38 89.5%
11/3/78 7.30 8.25 88.5%
11/10/78 7.20 8.10 88.9%
11/17/78 7.40 8.04 92.0%
11/24/78 7.40 8.21 90.1%
12/1/78 7.50 8.16 91.9%
12/8/78 7.40 8.36 88.5%
12/15/78 7.30 8.28 88.2%
12/22/78 7.30 8.17 89.4%
12/29/78 7.60 8.29 91.7%
1/5/79 7.70 8.50 90.6%
1/12/79 7.80 8.56 91.1%
1/19/79 7.80 8.56 91.1%
'79 7.70 8.59 89.6%
2/2/79 7.60 8.40 90.5%
2/9/79 7.60 8.18 92.9%
2/16/79 7.50 8.25 90.9%
2/23/79 7.30 8.21 88.9%
3/2/79 7.50 8.04 93.3%
3/9/79 7.60 8.25 92.1%
3/16/79 7.60 8.29 91.7%
3/23/79 7.60 8.41 90.4%
3/30/79 7.70 8.46 91.0%
4/6/79 7.80 8.57 91.0%
4/13/79 7.80 8.48 92.0%
4/20/79 7.80 8.32 93.8%
4/27/79 7.70 8.21 93.8%
5/4/79 7.60 8.12 93.6%
5/11/79 7.30 7.84 93.1%
5/18/79 7.40 7.93 93.3%
5/25/79 7.40 7.96 93.0%
6/1/79 7.30 7.86 92.9%
6/8/79 7.50 8.06 93.1%
6/15/79 7.50 8.06 93.1%
6/22/79 7.60 8.06 94.3%
6/29/79 7.60 8.16 93.1%
7/6/79 7.60 8.14 93.4%
7/13/79 7.70 8.10 95.1%
7/20/79 7.50 7.93 94.6%
7/27/79 7.60 7.95 95.6%
8/3/79 7.70 7.93 97.1%
8/10/79 7.80 8.01 97.4%
8/17/79 7.90 8.19 96.5%
8/24/79 8.00 8.22 97.3%
8/31/79 8.00 8.26 96.9%
9/7/79 7.90 8.11 97.4%
9/14/79 7.90 8.20 96.3%
9/21/79 8.00 8.36 95.7%
9/28/79 7.90 8.37 94.4%
10/5/79 8.00 8.38 95.5%
10/12/79 7.40 7.89 93.8%
10/19/79 7.30 7.74 94.3%
10/26/79 6.90 7.32 94.3%
11/2/79 7.00 7.45 94.0%
11/9/79 7.00 7.45 94.0%
11/16/79 7.00 7.55 92.7%
11/23/79 7.00 7.54 92.8%
11/30/79 7.20 7.79 92.4%
12/7/79 7.30 7.89 92.5%
12/14/79 7.30 7.89 92.5%
12/21/79 7.40 7.94 93.2%
12/28/79 7.50 7.86 95.4%
1/4/80 7.30 7.66 95.3%
1/11/80 7.70 7.99 96.4%
1/18/80 7.80 8.04 97.0%
'80 7.80 8.20 95.1%
2/1/80 8.00 8.23 97.2%
2/8/80 7.90 8.29 95.3%
2/15/80 7.90 8.24 95.9%
2/22/80 7.70 8.20 93.9%
2/29/80 7.40 8.00 92.5%
3/7/80 7.10 7.66 92.7%
3/14/80 6.80 7.43 91.5%
3/21/80 6.60 7.22 91.4%
3/28/80 6.00 6.76 88.8%
4/4/80 6.40 7.15 89.5%
4/11/80 6.50 7.26 89.5%
4/18/80 6.40 7.06 90.7%
4/25/80 6.60 7.31 90.3%
5/2/80 6.60 7.38 89.4%
5/9/80 6.80 7.63 89.1%
5/16/80 6.90 7.32 94.3%
5/23/80 7.00 7.38 94.9%
5/30/80 7.10 7.49 94.8%
6/6/80 7.10 7.59 93.5%
6/13/80 7.20 7.74 93.0%
6/20/80 7.30 7.71 94.7%
6/27/80 7.40 7.78 95.1%
7/4/80 7.50 7.77 96.5%
7/11/80 7.50 7.86 95.4%
7/18/80 7.70 8.15 94.5%
7/25/80 7.80 8.24 94.7%
8/1/80 7.90 8.18 96.6%
8/8/80 8.10 8.20 98.8%
8/15/80 8.20 8.41 97.5%
8/22/80 8.30 8.38 99.0%
8/29/80 8.20 8.26 99.3%
9/5/80 8.50 8.51 99.9%
9/12/80 8.60 8.62 99.8%
9/19/80 8.80 8.79 100.1%
9/26/80 8.90 8.81 101.0%
10/3/80 8.60 8.75 98.3%
10/10/80 8.90 8.95 99.4%
10/17/80 8.90 9.03 98.6%
10/24/80 8.80 8.87 99.2%
10/31/80 8.60 8.69 99.0%
11/7/80 8.80 8.70 101.1%
11/14/80 9.00 9.34 96.4%
11/21/80 9.20 9.57 96.1%
11/28/80 9.00 9.53 94.4%
12/5/80 8.90 9.30 95.7%
12/12/80 8.30 8.60 96.5%
12/19/80 8.50 9.03 94.1%
12/26/80 8.70 9.00 96.7%
1/2/81 8.80 9.21 95.5%
1/9/81 8.70 9.00 96.7%
1/16/81 8.90 9.10 97.8%
'81 8.70 8.80 98.9%
1/30/81 8.80 8.82 99.8%
2/6/81 8.70 8.72 99.8%
2/13/81 8.70 8.59 101.3%
2/20/81 8.60 8.53 100.8%
2/27/81 8.70 8.76 99.3%
3/6/81 8.80 8.73 100.8%
3/13/81 9.00 8.92 100.9%
3/20/81 9.30 9.00 103.3%
3/27/81 9.50 9.21 103.1%
4/3/81 9.60 9.25 103.8%
4/10/81 9.70 9.27 104.6%
4/17/81 9.70 9.12 106.4%
4/24/81 9.80 9.14 107.2%
5/1/81 9.70 9.15 106.0%
5/8/81 9.70 9.10 106.6%
5/15/81 9.70 9.13 106.2%
5/22/81 9.80 9.17 106.9%
5/29/81 10.00 9.29 107.6%
6/5/81 9.90 9.08 109.0%
6/12/81 10.10 9.24 109.3%
6/19/81 10.00 9.23 108.3%
6/26/81 10.10 9.31 108.5%
7/3/81 9.80 9.09 107.8%
7/10/81 9.60 9.03 106.3%
7/17/81 9.70 9.12 106.4%
7/24/81 9.40 8.86 106.1%
7/31/81 9.40 8.83 106.5%
8/7/81 9.40 9.02 104.2%
8/14/81 9.40 9.08 103.5%
8/21/81 9.20 8.89 103.5%
8/28/81 8.70 8.42 103.3%
9/4/81 8.50 8.23 103.3%
9/11/81 8.30 8.14 102.0%
9/18/81 8.20 7.95 103.1%
9/25/81 7.90 7.74 102.1%
10/2/81 8.00 7.83 102.2%
10/9/81 8.30 8.23 100.9%
10/16/81 8.30 8.07 102.9%
10/23/81 8.30 8.06 103.0%
10/30/81 8.30 8.02 103.5%
11/6/81 8.50 8.32 102.2%
11/13/81 8.50 8.31 102.3%
11/20/81 8.40 8.13 103.3%
11/27/81 8.60 8.35 103.0%
12/4/81 8.50 8.42 101.0%
12/11/81 8.50 8.43 100.8%
12/18/81 8.40 8.33 100.8%
12/25/81 8.40 8.24 101.9%
1/1/82 8.30 8.23 100.9%
1/8/82 8.30 8.01 103.6%
1/15/82 8.10 8.01 101.1%
'82 8.10 7.78 104.1%
1/29/82 8.10 7.95 101.9%
2/5/82 8.10 7.79 104.0%
2/12/82 8.00 7.65 104.6%
2/19/82 7.90 7.61 103.8%
2/26/82 7.80 7.57 103.0%
3/5/82 7.70 7.34 104.9%
3/12/82 7.50 7.26 103.3%
3/19/82 7.50 7.34 102.2%
3/26/82 7.70 7.50 102.7%
4/2/82 7.70 7.53 102.3%
4/9/82 7.80 7.64 102.1%
4/16/82 7.90 7.71 102.5%
4/23/82 8.00 7.83 102.2%
4/30/82 8.10 7.88 102.8%
5/7/82 8.20 8.09 101.4%
5/14/82 8.30 8.12 102.2%
5/21/82 8.20 7.90 103.8%
5/28/82 7.90 7.76 101.8%
6/4/82 7.90 7.70 102.6%
6/11/82 7.70 7.53 102.3%
6/18/82 7.70 7.45 103.4%
6/25/82 7.80 7.55 103.3%
7/2/82 7.80 7.48 104.3%
7/9/82 7.70 7.38 104.3%
7/16/82 7.90 7.56 104.5%
7/23/82 8.00 7.69 104.0%
7/30/82 7.80 7.49 104.1%
8/6/82 7.80 7.46 104.6%
8/13/82 7.60 7.32 103.8%
8/20/82 7.90 7.85 100.6%
8/27/82 8.50 8.57 99.2%
9/3/82 8.70 8.73 99.7%
9/10/82 8.80 8.73 100.8%
9/17/82 8.90 9.00 98.9%
9/24/82 9.00 9.01 99.9%
10/1/82 8.90 8.80 101.1%
10/8/82 9.30 9.34 99.6%
10/15/82 9.80 9.80 100.0%
10/22/82 10.20 10.17 100.3%
10/29/82 10.30 9.89 104.1%
11/5/82 11.00 10.60 103.8%
11/12/82 11.30 10.70 105.6%
11/19/82 11.20 10.51 106.6%
11/26/82 11.10 10.26 108.2%
12/3/82 11.50 10.65 108.0%
12/10/82 11.60 10.74 108.0%
12/17/82 11.20 10.38 107.9%
12/24/82 11.30 10.62 106.4%
12/31/82 11.30 10.77 104.9%
1/7/83 11.80 11.18 105.5%
1/14/83 11.90 11.25 105.8%
'83 12.10 11.31 107.0%
1/28/83 11.90 11.22 106.1%
2/4/83 12.20 11.48 106.3%
2/11/83 12.50 11.82 105.8%
2/18/83 12.70 11.99 105.9%
2/25/83 12.80 12.13 105.5%
3/4/83 13.40 12.44 107.7%
3/11/83 13.50 12.37 109.1%
3/18/83 13.30 12.21 108.9%
3/25/83 13.70 12.54 109.3%
4/1/83 13.70 12.54 109.3%
4/8/83 13.50 12.45 108.4%
4/15/83 13.90 12.98 107.1%
4/22/83 14.10 13.21 106.7%
4/29/83 14.40 13.22 108.9%
5/6/83 14.60 13.55 107.7%
5/13/83 14.90 13.72 108.6%
5/20/83 14.90 13.63 109.3%
5/27/83 15.30 13.98 109.4%
6/3/83 15.20 13.88 109.5%
6/10/83 15.30 13.79 110.9%
6/17/83 15.80 14.38 109.9%
6/24/83 16.00 14.62 109.4%
7/1/83 15.70 14.42 108.9%
7/8/83 15.80 14.36 110.0%
7/15/83 15.60 14.17 110.1%
7/22/83 15.70 14.48 108.4%
7/29/83 15.50 14.04 110.4%
8/5/83 14.80 13.74 107.7%
8/12/83 14.50 13.69 105.9%
8/19/83 14.80 13.76 107.6%
8/26/83 14.40 13.50 106.7%
9/2/83 14.50 13.76 105.4%
9/9/83 14.80 14.07 105.2%
9/16/83 14.50 13.84 104.8%
9/23/83 14.80 14.23 104.0%
9/30/83 14.80 14.00 105.7%
10/7/83 14.80 14.17 104.4%
10/14/83 14.70 14.09 104.3%
10/21/83 14.20 13.68 103.8%
10/28/83 13.80 13.36 103.3%
11/4/83 13.70 13.21 103.7%
11/11/83 13.50 13.13 102.8%
11/18/83 13.90 12.83 108.3%
11/25/83 14.00 13.37 104.7%
12/2/83 14.00 13.38 104.6%
12/9/83 13.80 13.33 103.5%
12/16/83 13.90 13.38 103.9%
12/23/83 13.50 13.37 101.0%
12/30/83 13.50 13.27 101.7%
1/6/84 13.90 13.47 103.2%
1/13/84 13.90 14.23 97.7%
'84 13.80 13.59 101.5%
1/27/84 13.30 13.64 97.5%
2/3/84 12.80 13.30 96.2%
2/10/84 12.10 12.69 95.4%
2/17/84 12.00 12.38 96.9%
2/24/84 11.80 12.05 97.9%
3/2/84 12.10 12.25 98.8%
3/9/84 11.80 11.81 99.9%
3/16/84 11.90 12.02 99.0%
3/23/84 12.00 11.94 100.5%
3/30/84 12.10 12.10 100.0%
4/6/84 11.80 11.79 100.1%
4/13/84 11.70 11.94 98.0%
4/20/84 11.80 12.00 98.3%
4/27/84 12.00 12.16 98.7%
5/4/84 12.20 12.27 99.4%
5/11/84 12.10 12.14 99.7%
5/18/84 11.80 11.78 100.2%
5/25/84 11.30 11.21 100.8%
6/1/84 11.20 11.10 100.9%
6/8/84 11.50 11.37 101.1%
6/15/84 11.30 11.10 101.8%
6/22/84 11.40 11.29 101.0%
6/29/84 11.60 11.32 102.5%
7/6/84 11.50 11.29 101.9%
7/13/84 11.40 11.03 103.4%
7/20/84 11.20 10.89 102.8%
7/27/84 10.90 10.64 102.4%
8/3/84 11.30 11.08 102.0%
8/10/84 11.80 11.54 102.3%
8/17/84 11.80 11.42 103.3%
8/24/84 11.90 11.58 102.8%
8/31/84 11.90 11.43 104.1%
9/7/84 11.90 11.49 103.6%
9/14/84 11.90 11.49 103.6%
9/21/84 11.90 11.42 104.2%
9/28/84 11.80 11.34 104.1%
10/5/84 11.50 10.87 105.8%
10/12/84 11.40 10.83 105.3%
10/19/84 11.50 11.07 103.9%
10/26/84 11.50 10.92 105.3%
11/2/84 11.40 11.03 103.4%
11/9/84 11.50 11.08 103.8%
11/16/84 11.30 10.82 104.4%
11/23/84 11.10 10.65 104.2%
11/30/84 11.00 10.53 104.5%
12/7/84 10.80 10.58 102.1%
12/14/84 10.80 10.55 102.4%
12/21/84 11.00 10.83 101.6%
12/28/84 11.10 10.79 102.9%
1/4/85 11.10 10.72 103.5%
1/11/85 11.30 11.00 102.7%
'85 11.70 11.20 104.5%
1/25/85 12.20 11.60 105.2%
2/1/85 12.40 11.78 105.3%
2/8/85 12.40 11.95 103.8%
2/15/85 12.50 12.03 103.9%
2/22/85 12.50 12.06 103.6%
3/1/85 12.50 12.14 103.0%
3/8/85 12.50 11.94 104.7%
3/15/85 12.30 11.85 103.8%
3/22/85 12.30 11.99 102.6%
3/29/85 12.30 11.95 102.9%
4/5/85 12.20 11.89 102.6%
4/12/85 12.20 11.95 102.1%
4/19/85 12.40 12.02 103.2%
4/26/85 12.30 12.10 101.7%
5/3/85 12.10 11.96 101.2%
5/10/85 12.30 12.09 101.7%
5/17/85 12.50 12.34 101.3%
5/24/85 12.50 12.42 100.6%
5/31/85 12.50 12.40 100.8%
6/7/85 12.70 12.59 100.9%
6/14/85 12.50 12.28 101.8%
6/21/85 12.50 12.30 101.6%
6/28/85 12.80 12.60 101.6%
7/5/85 12.90 12.63 102.1%
7/12/85 13.00 12.76 101.9%
7/19/85 13.20 12.91 102.2%
7/26/85 13.10 12.73 102.9%
8/2/85 13.20 12.98 101.7%
8/9/85 12.90 12.79 100.9%
8/16/85 12.90 12.61 102.3%
8/23/85 12.90 12.71 101.5%
8/30/85 12.90 12.88 100.2%
9/6/85 12.80 12.86 99.5%
9/13/85 12.60 12.61 99.9%
9/20/85 12.40 12.54 98.9%
9/27/85 12.30 12.47 98.6%
10/4/85 12.50 12.69 98.5%
10/11/85 12.30 12.60 97.6%
10/18/85 12.50 12.93 96.7%
10/25/85 12.70 12.91 98.4%
11/1/85 12.70 12.92 98.3%
11/8/85 13.00 13.18 98.6%
11/15/85 13.20 13.63 96.8%
11/22/85 13.40 13.89 96.5%
11/29/85 13.50 14.03 96.2%
12/6/85 13.70 14.24 96.2%
12/13/85 13.90 14.43 96.3%
12/20/85 14.00 14.63 95.7%
12/27/85 13.90 14.53 95.7%
1/3/86 14.10 14.64 96.3%
1/10/86 13.90 14.42 96.4%
'86 14.10 14.67 96.1%
1/24/86 13.90 14.29 97.3%
1/31/86 14.10 14.77 95.5%
2/7/86 14.30 14.78 96.8%
2/14/86 14.60 15.08 96.8%
2/21/86 14.80 15.34 96.5%
2/28/86 15.00 15.73 95.4%
3/7/86 15.20 15.89 95.7%
3/14/86 15.60 16.31 95.6%
3/21/86 15.60 16.66 93.6%
3/28/86 15.60 16.78 93.0%
4/4/86 15.70 16.65 94.3%
4/11/86 15.70 16.92 92.8%
4/18/86 16.00 17.39 92.0%
4/25/86 16.10 17.39 92.6%
5/2/86 15.80 17.03 92.8%
5/9/86 15.80 17.27 91.5%
5/16/86 15.80 17.19 91.9%
5/23/86 16.10 17.56 91.7%
5/30/86 16.60 18.08 91.8%
6/6/86 16.50 18.01 91.6%
6/13/86 16.40 17.80 92.1%
6/20/86 16.40 17.91 91.6%
6/27/86 16.60 18.00 92.2%
7/4/86 16.80 18.51 90.8%
7/11/86 16.10 17.77 90.6%
7/18/86 15.80 17.29 91.4%
7/25/86 15.70 17.08 91.9%
8/1/86 15.50 17.05 90.9%
8/8/86 15.30 17.35 88.2%
8/15/86 15.60 17.93 87.0%
8/22/86 15.70 18.28 85.9%
8/29/86 15.90 18.56 85.7%
9/5/86 15.90 18.68 85.1%
9/12/86 14.70 17.52 83.9%
9/19/86 14.30 17.68 80.9%
9/26/86 14.40 17.89 80.5%
10/3/86 14.50 17.98 80.6%
10/10/86 14.50 18.17 79.8%
10/17/86 14.60 18.10 80.7%
10/24/86 14.60 18.28 79.9%
10/31/86 14.80 18.42 80.3%
11/7/86 14.80 18.30 80.9%
11/14/86 14.70 18.09 81.3%
11/21/86 14.50 18.05 80.3%
11/28/86 14.80 18.62 79.5%
12/5/86 14.80 19.08 77.6%
12/12/86 14.70 18.68 78.7%
12/19/86 14.50 18.64 77.8%
12/26/86 14.30 18.62 76.8%
1/2/87 14.20 18.31 77.6%
1/9/87 15.10 19.40 77.8%
'87 15.60 20.03 77.9%
1/23/87 15.50 20.33 76.2%
1/30/87 15.40 20.01 77.0%
2/6/87 15.90 21.41 74.3%
2/13/87 15.80 20.55 76.9%
2/20/87 16.10 21.38 75.3%
2/27/87 16.10 21.12 76.2%
3/6/87 16.30 21.56 75.6%
3/13/87 16.40 21.66 75.7%
3/20/87 16.30 21.74 75.0%
3/27/87 16.40 22.35 73.4%
4/3/87 16.20 21.84 74.2%
4/10/87 16.10 21.92 73.4%
4/17/87 15.50 21.19 73.1%
4/24/87 15.30 21.17 72.3%
5/1/87 15.40 21.16 72.8%
5/8/87 15.50 21.37 72.5%
5/15/87 15.50 21.34 72.6%
5/22/87 15.00 20.21 74.2%
5/29/87 15.10 20.79 72.6%
6/5/87 15.40 21.00 73.3%
6/12/87 15.50 21.28 72.8%
6/19/87 15.70 21.65 72.5%
6/26/87 15.80 21.85 72.3%
7/3/87 15.60 21.42 72.8%
7/10/87 15.80 21.46 73.6%
7/17/87 15.90 21.49 74.0%
7/24/87 15.80 21.17 74.6%
7/31/87 15.90 22.20 71.6%
8/7/87 16.10 22.30 72.2%
8/14/87 16.50 23.07 71.5%
8/21/87 16.50 23.14 71.3%
8/28/87 16.50 23.03 71.6%
9/4/87 16.30 22.29 73.1%
9/11/87 16.00 22.29 71.8%
9/18/87 16.00 21.99 72.8%
9/25/87 15.90 22.25 71.5%
10/2/87 16.30 22.90 71.2%
10/9/87 15.90 22.26 71.4%
10/16/87 15.30 21.27 71.9%
10/23/87 12.50 17.48 71.5%
10/30/87 11.20 16.76 66.8%
11/6/87 11.70 16.98 68.9%
11/13/87 11.60 16.80 69.0%
11/20/87 11.30 16.20 69.8%
11/27/87 11.40 16.54 68.9%
12/4/87 10.80 15.25 70.8%
12/11/87 10.80 15.68 68.9%
12/18/87 11.40 16.29 70.0%
12/25/87 11.70 16.92 69.1%
1/1/88 11.70 16.73 69.9%
1/8/88 12.30 17.56 70.0%
88 11.80 16.66 70.8%
1/22/88 11.80 16.03 73.6%
1/29/88 11.90 16.20 73.5%
2/5/88 12.00 15.46 77.6%
2/12/88 12.20 15.25 80.0%
2/19/88 12.30 15.36 80.1%
2/26/88 12.50 15.54 80.4%
3/4/88 12.80 15.88 80.6%
3/11/88 13.00 15.98 81.4%
3/18/88 13.10 16.52 79.3%
3/25/88 13.00 16.52 78.7%
4/1/88 12.90 15.56 82.9%
4/8/88 13.10 16.25 80.6%
4/15/88 13.00 16.28 79.9%
4/22/88 12.90 15.97 80.8%
4/29/88 13.00 15.95 81.5%
5/6/88 12.90 15.62 82.6%
5/13/88 12.60 15.23 82.7%
5/20/88 12.50 15.21 82.2%
5/27/88 12.50 15.33 81.5%
6/3/88 12.70 15.78 80.5%
6/10/88 12.80 16.10 79.5%
6/17/88 12.90 16.07 80.3%
6/24/88 13.00 16.25 80.0%
7/1/88 13.10 16.37 80.0%
7/8/88 13.20 16.29 81.0%
7/15/88 13.20 16.21 81.4%
7/22/88 12.90 15.87 81.3%
7/29/88 12.70 15.23 83.4%
8/5/88 12.80 15.24 84.0%
8/12/88 12.40 14.48 85.6%
8/19/88 12.30 14.32 85.9%
8/26/88 12.10 14.01 86.4%
9/2/88 12.00 13.80 87.0%
9/9/88 12.20 13.81 88.3%
9/16/88 12.20 13.82 88.3%
9/23/88 12.20 13.85 88.1%
9/30/88 12.30 14.06 87.5%
10/7/88 12.30 13.96 88.1%
10/14/88 12.30 14.05 87.5%
10/21/88 12.30 14.20 86.6%
10/28/88 12.00 13.76 87.2%
11/4/88 12.00 13.70 87.6%
11/11/88 11.80 13.46 87.7%
11/18/88 11.60 13.23 87.7%
11/25/88 11.50 13.44 85.6%
12/2/88 11.60 13.80 84.1%
12/9/88 11.70 13.66 85.7%
12/16/88 11.60 13.68 84.8%
12/23/88 11.70 13.82 84.7%
12/30/88 11.70 13.92 84.1%
1/6/89 11.90 13.93 85.4%
'89 12.00 14.05 85.4%
1/20/89 12.10 14.02 86.3%
1/27/89 12.20 14.21 85.9%
2/3/89 12.20 14.14 86.3%
2/10/89 12.30 14.03 87.7%
2/17/89 12.20 14.06 86.8%
2/24/89 12.10 13.93 86.9%
3/3/89 12.10 13.85 87.4%
3/10/89 12.20 13.96 87.4%
3/17/89 12.40 14.11 87.9%
3/24/89 12.10 13.65 88.6%
3/31/89 12.20 13.71 89.0%
4/7/89 12.20 13.65 89.4%
4/14/89 12.30 13.74 89.5%
4/21/89 12.40 14.03 88.4%
4/28/89 12.50 14.01 89.2%
5/5/89 12.50 13.86 90.2%
5/12/89 12.50 13.88 90.1%
5/19/89 12.60 14.26 88.4%
5/26/89 12.70 14.30 88.8%
6/2/89 12.70 14.39 88.3%
6/9/89 12.80 14.65 87.4%
6/16/89 12.70 14.19 89.5%
6/23/89 12.60 14.22 88.6%
6/30/89 12.50 13.92 89.8%
7/7/89 12.50 13.97 89.5%
7/14/89 12.70 14.31 88.7%
7/21/89 12.80 14.03 91.2%
7/28/89 12.90 15.93 86.0%
8/4/89 13.00 14.83 87.7%
8/11/89 13.10 15.01 87.3%
8/18/89 13.10 14.70 89.1%
8/25/89 13.20 14.84 88.9%
9/1/89 13.20 14.77 89.4%
9/8/89 13.30 14.67 90.7%
9/15/89 13.20 14.47 91.2%
9/22/89 13.10 13.76 95.2%
9/29/89 13.20 13.84 95.4%
10/6/89 13.40 14.22 94.2%
10/13/89 13.20 13.23 95.8%
10/20/89 12.80 13.77 93.0%
10/27/89 12.50 13.29 94.1%
11/3/89 12.50 13.39 93.4%
11/10/89 12.50 14.24 87.8%
11/17/89 12.50 14.34 87.2%
11/24/89 12.50 14.56 85.9%
12/1/89 12.60 14.84 84.9%
12/8/89 12.70 14.78 85.9%
12/15/89 12.60 14.76 85.4%
12/22/89 12.50 14.65 85.3%
12/29/89 12.60 14.90 84.6%
1/5/90 12.80 14.85 86.2%
'90 12.70 14.35 88.5%
1/19/90 12.30 14.32 85.9%
1/26/90 12.00 13.75 87.3%
2/2/90 12.00 13.97 85.9%
2/9/90 12.10 14.08 85.9%
2/16/90 12.10 14.04 86.2%
2/23/90 12.00 14.16 84.7%
3/2/90 11.60 14.65 79.2%
3/9/90 12.04 14.73 81.7%
3/16/90 12.19 14.90 81.8%
3/23/90 12.26 14.70 83.4%
3/30/90 12.31 14.86 82.8%
4/6/90 12.29 14.87 82.6%
4/13/90 12.38 15.06 82.2%
4/20/90 12.00 14.63 82.0%
4/27/90 11.90 14.39 82.7%
5/4/90 12.20 14.80 82.4%
5/11/90 12.52 16.24 77.1%
5/18/90 12.35 16.70 74.0%
5/25/90 12.58 16.36 76.9%
6/1/90 12.79 16.76 76.3%
6/8/90 12.60 16.55 76.1%
6/15/90 12.69 16.75 75.8%
6/22/90 12.57 16.40 76.6%
6/29/90 12.79 16.52 77.4%
7/6/90 12.82 16.54 77.5%
7/13/90 12.65 16.95 74.6%
7/20/90 12.74 16.69 76.3%
7/27/90 12.34 16.31 75.7%
8/3/90 11.80 15.91 74.2%
8/10/90 11.44 15.48 73.9%
8/17/90 11.39 15.30 74.4%
8/24/90 10.80 14.60 74.0%
8/31/90 10.71 15.12 70.8%
9/7/90 10.59 15.15 69.9%
9/14/90 10.37 14.90 69.6%
9/21/90 10.61 14.64 72.5%
9/28/90 9.94 14.39 69.1%
10/5/90 9.97 14.65 68.1%
10/12/90 9.99 14.11 70.8%
10/19/90 10.09 14.70 68.6%
10/26/90 9.91 14.33 69.2%
11/2/90 9.76 14.67 66.5%
11/9/90 10.02 14.76 67.9%
11/16/90 10.26 14.61 70.2%
11/23/90 10.26 14.52 70.7%
11/30/90 10.45 14.85 70.4%
12/7/90 10.61 15.08 70.4%
12/14/90 10.67 15.03 71.0%
12/21/90 10.94 15.25 71.7%
12/28/90 10.91 15.11 72.2%
1/4/91 10.88 14.76 73.7%
'91 10.89 14.50 75.1%
1/18/91 11.01 15.28 72.1%
1/25/91 11.23 15.46 72.6%
2/1/91 11.60 15.78 73.5%
2/8/91 12.25 16.53 74.1%
2/15/91 12.30 16.98 72.4%
2/22/91 12.20 16.82 72.5%
3/1/91 12.30 17.15 71.7%
3/8/91 12.54 17.41 72.0%
3/15/91 12.23 17.48 70.0%
3/22/91 12.30 17.20 71.5%
3/29/91 13.41 17.56 76.4%
4/5/91 12.54 17.56 71.4%
4/12/91 15.81 17.79 88.9%
4/19/91 15.85 18.00 88.1%
4/26/91 15.68 17.76 88.3%
5/3/91 15.70 17.84 88.0%
5/10/91 16.02 17.61 91.0%
5/17/91 15.64 18.09 86.5%
5/24/91 15.57 17.98 86.6%
5/31/91 15.99 18.56 86.2%
6/7/91 15.94 18.07 88.2%
6/14/91 15.80 18.20 86.8%
6/21/91 15.36 17.99 85.4%
6/28/91 15.18 17.68 85.9%
7/5/91 16.11 17.82 90.4%
7/12/91 16.12 18.12 89.0%
7/19/91 16.23 18.30 88.7%
7/26/91 15.94 18.15 87.8%
8/2/91 16.24 18.45 88.0%
8/9/91 16.34 18.44 88.6%
8/16/91 16.25 19.49 83.4%
8/23/91 16.45 20.22 81.4%
8/30/91 16.72 20.29 82.4%
9/6/91 16.19 19.96 81.1%
9/13/91 16.10 19.71 81.7%
9/20/91 16.17 19.93 81.1%
9/27/91 16.20 19.83 81.7%
10/4/91 15.83 19.59 80.8%
10/11/91 15.83 19.60 80.8%
10/18/91 16.14 20.17 80.0%
10/25/91 15.79 19.74 80.0%
11/1/91 16.20 20.11 80.6%
11/8/91 15.90 20.19 78.8%
11/15/91 15.70 19.68 79.8%
11/22/91 15.54 20.97 74.1%
11/29/91 15.48 20.92 74.0%
12/6/91 15.33 21.13 72.6%
12/13/91 15.30 21.48 71.2%
12/20/91 15.17 21.62 70.2%
12/27/91 15.59 22.71 68.6%
1/3/92 16.42 23.43 70.1% 20.90
'92 16.75 23.24 72.1%
1/17/92 17.10 23.45 72.9%
1/24/92 17.11 23.32 73.4%
1/31/92 17.07 23.00 74.2%
2/7/92 17.30 23.07 75.0%
2/14/92 17.60 23.15 76.0%
2/21/92 17.18 23.09 74.4%
2/28/92 17.20 25.62 67.1%
3/6/92 16.84 25.10 67.1%
3/13/92 17.59 25.40 69.3%
3/20/92 18.10 25.60 70.7%
3/27/92 18.40 25.25 72.9%
4/3/92 18.59 25.14 73.9%
4/10/92 18.85 25.32 74.4%
4/17/92 19.40 26.05 74.5%
4/24/92 18.24 25.61 71.2%
5/1/92 18.59 25.83 72.0%
5/8/92 18.40 26.05 70.6%
5/15/92 18.20 25.65 71.0%
5/22/92 18.40 25.34 72.6%
5/29/92 18.31 25.42 72.0%
6/5/92 18.10 25.30 71.5%
6/12/92 17.80 25.08 71.0%
6/19/92 17.20 24.93 69.0%
6/26/92 16.98 24.92 68.1%
7/3/92 17.20 25.43 67.6%
7/10/92 17.20 25.61 67.2%
7/17/92 17.40 25.67 67.8%
7/24/92 16.94 25.42 66.6%
7/31/92 17.66 26.20 67.4%
8/7/92 17.49 25.87 67.6%
8/14/92 17.40 25.94 67.1%
8/21/92 17.59 24.35 72.2%
8/28/92 17.20 24.35 70.6%
9/4/92 17.13 24.48 70.0%
9/11/92 17.43 24.62 70.8%
9/18/92 17.58 24.82 70.8%
9/25/92 17.49 24.30 72.0%
10/2/92 17.27 24.07 71.7%
10/9/92 16.85 23.62 71.3%
10/16/92 17.12 24.15 70.9%
10/23/92 17.30 24.29 71.2%
10/30/92 17.32 24.56 70.5%
11/6/92 17.28 24.49 70.6%
11/13/92 17.54 24.78 70.8%
11/20/92 17.81 23.58 75.5%
11/27/92 17.80 23.78 74.9%
12/4/92 17.86 23.94 74.6%
12/11/92 17.99 24.03 74.9%
12/18/92 18.02 24.45 73.7%
12/25/92 17.93 24.36 73.6%
1/1/93 18.60 24.14 77.1%
'93 18.65 23.77 78.5%
1/15/93 19.10 24.22 78.9%
1/22/93 19.35 24.17 80.1%
1/29/93 19.36 24.32 79.6%
2/5/93 19.36 24.32 79.6%
2/12/93 19.01 24.64 77.2%
2/19/93 18.44 24.07 76.6%
2/26/93 18.24 24.58 74.2%
3/5/93 18.45 23.17 79.6%
3/12/93 18.64 23.37 79.8%
3/19/93 18.50 23.39 79.1%
3/26/93 18.02 23.26 77.5%
4/2/93 17.66 23.10 76.5%
4/9/93 17.32 23.12 74.9%
4/16/93 17.74 23.49 75.5%
4/23/93 17.47 22.87 76.4%
4/30/93 17.40 23.05 75.5%
5/7/93 17.61 23.16 76.0%
5/14/93 17.28 23.01 75.1%
5/21/93 17.41 23.35 74.6%
5/28/93 18.44 22.68 81.3%
6/4/93 18.49 22.67 81.6%
6/11/93 18.17 22.53 80.6%
6/18/93 18.07 22.35 80.9%
6/25/93 18.16 22.56 80.5%
7/2/93 18.29 22.47 81.4%
7/9/93 18.36 22.59 81.3%
7/16/93 18.45 22.47 82.1%
7/23/93 18.06 22.54 80.1%
7/30/93 18.09 22.59 80.1%
8/6/93 18.01 22.61 79.7%
8/13/93 18.24 22.68 80.4%
8/20/93 18.69 23.56 79.3%
8/27/93 18.78 23.79 78.9%
9/3/93 18.72 23.87 78.4%
9/10/93 18.80 23.85 78.8%
9/17/93 18.52 23.74 78.0%
9/24/93 18.55 23.67 78.4%
10/1/93 18.69 23.86 78.3%
10/8/93 18.83 23.81 79.1%
10/15/93 19.17 24.29 78.9%
10/22/93 19.03 23.97 79.4%
10/29/93 18.98 24.20 78.4%
11/5/93 18.89 23.77 79.5%
11/12/93 18.72 24.08 77.7%
11/19/93 18.59 22.59 82.3%
11/26/93 18.05 22.61 79.8%
12/3/93 18.00 22.77 79.1%
12/10/93 18.13 22.72 79.8%
12/17/93 18.01 22.84 78.9%
12/24/93 17.94 22.89 78.4%
12/31/93 18.28 22.95 79.7%
'94 19.13 23.01 83.1%
1/14/94 19.50 23.27 83.8%
1/21/94 19.51 23.26 83.9%
1/28/94 19.48 23.45 83.1%
2/4/94 19.32 23.02 83.9%
2/11/94 19.21 23.04 83.4%
2/18/94 19.29 22.91 84.2%
2/25/94 18.60 21.05 88.4%
3/4/94 18.37 21.00 87.5%
3/11/94 18.40 21.07 87.3%
3/18/94 18.48 21.28 86.8%
3/25/94 18.21 20.96 86.9%
4/1/94 17.80 20.36 87.4%
4/8/94 18.10 20.43 88.6%
4/15/94 18.20 20.30 89.7%
4/22/94 17.96 20.46 87.8%
4/29/94 18.40 20.60 89.3%
5/6/94 17.78 20.46 86.9%
5/13/94 17.10 20.30 84.2%
5/20/94 16.90 20.79 81.3%
5/27/94 16.81 20.19 83.3%
6/3/94 16.93 20.31 83.4%
6/10/94 16.88 20.25 83.4%
6/17/94 16.87 20.24 83.3%
6/24/94 16.21 19.55 82.9%
7/1/94 16.39 19.65 83.4%
7/8/94 16.34 19.80 82.5%
7/15/94 16.53 20.00 82.7%
7/22/94 16.39 19.95 82.2%
7/29/94 16.31 20.18 80.8%
8/5/94 16.03 20.13 79.6%
8/12/94 16.00 20.34 78.7%
8/19/94 16.17 18.37 88.0%
8/26/94 16.37 18.77 87.2%
9/2/94 16.43 18.70 87.9%
9/9/94 16.95 18.59 91.2%
9/16/94 17.15 18.70 91.7%
9/23/94 16.56 18.24 90.8%
9/30/94 16.80 18.36 91.5%
10/7/94 16.53 18.06 91.5%
10/14/94 16.82 18.62 90.3%
10/21/94 16.48 18.45 89.3%
10/28/94 16.62 18.80 88.4%
11/4/94 16.53 18.34 90.1%
11/11/94 16.22 18.35 88.4%
11/18/94 16.02 18.31 87.5%
11/25/94 15.62 16.56 94.3%
12/2/94 15.74 16.57 95.0%
12/9/94 15.50 16.34 94.9%
12/16/94 15.50 16.79 92.3%
12/23/94 15.50 16.83 92.1%
12/30/94 15.75 16.80 93.8%
'95 15.83 16.86 93.9%
1/13/95 15.78 17.05 92.6%
1/20/95 15.78 17.05 92.6%
1/27/95 15.82 17.21 91.9%
2/3/95 16.09 17.51 91.9%
2/10/95 16.39 17.62 93.0%
2/17/95 15.87 17.64 90.0%
2/24/95 15.33 17.86 85.8%
3/3/95 15.63 15.85 98.6%
3/10/95 15.44 15.97 96.7%
3/17/95 15.67 16.17 96.9%
3/24/95 15.69 16.23 96.7%
3/31/95 16.00 16.34 97.9%
4/7/95 15.95 16.52 96.5%
4/14/95 16.15 16.61 97.2%
4/21/95 16.07 16.59 96.9%
4/28/95 16.19 16.79 96.4%
5/5/95 15.89 16.97 93.6%
5/12/95 15.77 17.15 92.0%
5/19/95 15.79 16.94 93.2%
5/26/95 16.00 16.09 99.4%
6/2/95 15.84 16.31 97.1%
6/9/95 16.01 16.22 98.7%
6/16/95 15.71 16.53 95.0%
6/23/95 16.99 16.84 100.9%
6/30/95 16.92 16.68 101.4%
7/7/95 17.26 17.07 101.1%
7/14/95 17.59 17.14 102.6%
7/21/95 17.33 16.98 102.1%
7/28/95 17.25 17.27 99.9%
8/4/95 17.21 17.17 100.2%
8/11/95 17.26 17.05 101.2%
8/18/95 16.91 17.18 98.4%
8/25/95 16.84 16.18 104.1%
9/1/95 16.94 16.29 104.0%
9/8/95 17.40 16.63 104.6%
9/15/95 17.31 16.94 102.2%
9/22/95 17.19 16.89 101.8%
9/29/95 17.39 16.97 102.5%
10/6/95 16.89 16.92 99.8%
10/13/95 17.29 16.98 101.8%
10/20/95 16.68 17.06 97.8%
10/27/95 15.85 16.84 94.1%
11/3/95 15.85 17.15 92.4%
11/10/95 16.29 16.87 96.6%
11/17/95 16.24 17.07 95.1%
11/24/95 16.34 17.07 95.7%
12/1/95 16.62 17.27 96.2%
12/8/95 16.65 17.55 94.9%
12/15/95 16.59 17.52 94.7%
12/22/95 16.69 17.40 95.9%
12/29/95 16.62 17.71 93.8%
'96 16.40 17.53 93.6%
1/12/96 16.40 17.11 95.9%
1/19/96 15.95 17.39 91.7%
1/26/96 16.09 17.67 91.1%
2/2/96 16.29 18.09 90.0%
2/9/96 16.48 18.67 88.3%
2/16/96 16.29 18.43 88.4%
2/23/96 16.03 19.28 83.1%
3/1/96 16.24 18.90 85.9%
3/8/96 15.73 18.60 84.6%
3/15/96 15.94 18.84 84.6%
3/22/96 16.09 19.14 84.1%
3/29/96 16.01 18.99 84.3%
4/5/96 16.89 19.30 87.5%
4/12/96 15.89 18.75 84.7%
4/19/96 16.11 18.99 84.8%
4/26/96 16.47 19.24 85.6%
5/3/96 16.42 18.89 86.9%
5/10/96 16.34 19.20 85.1%
5/17/96 16.78 19.62 85.5%
5/24/96 16.39 19.93 82.2%
5/31/96 16.40 19.65 83.5%
6/7/96 16.23 19.77 82.1%
6/14/96 16.06 19.56 82.1%
6/21/96 17.18 19.59 87.7%
6/28/96 17.07 19.70 86.6%
7/5/96 16.99 19.31 88.0%
7/12/96 16.73 18.98 88.1%
7/19/96 16.02 18.76 85.4%
7/26/96 15.69 18.68 84.0%
8/2/96 16.10 19.46 82.7%
8/9/96 16.25 19.45 83.5%
8/16/96 15.85 19.09 83.0%
8/23/96 16.18 19.32 83.7%
8/30/96 16.28 18.71 87.0%
9/6/96 15.69 18.80 83.5%
9/13/96 15.99 19.47 82.1%
9/20/96 16.01 19.68 81.4%
9/27/96 16.01 19.68 81.4%
10/4/96 16.18 20.09 80.5%
10/11/96 16.24 20.07 80.9%
10/18/96 16.76 20.36 82.3%
10/25/96 17.39 20.07 86.6%
11/1/96 17.40 20.16 86.3%
11/8/96 17.70 20.93 84.6%
11/15/96 17.63 20.44 86.3%
11/22/96 17.94 20.75 86.5%
11/29/96 18.04 20.98 86.0%
12/6/96 18.11 20.54 88.2%
12/13/96 18.30 20.23 90.5%
12/20/96 18.43 20.80 88.6%
12/27/96 18.56 21.02 88.3%
'97 18.44 20.78 88.7%
1/10/97 18.57 21.10 88.0%
1/17/97 18.69 21.56 86.7%
1/24/97 18.79 21.40 87.8%
1/31/97 19.18 21.84 87.8%
2/7/97 19.04 21.93 86.8%
2/14/97 19.29 22.46 85.9%
2/21/97 18.89 20.44 92.4%
2/28/97 18.70 20.19 92.6%
3/7/97 18.80 20.77 90.5%
3/14/97 18.77 20.49 91.6%
3/21/97 18.29 20.25 90.3%
3/28/97 18.27 19.19 95.2%
4/4/97 17.77 19.61 90.6%
4/11/97 17.40 19.05 91.3%
4/18/97 17.92 19.79 90.6%
4/25/97 17.30 19.76 87.6%
5/2/97 18.11 20.99 86.3%
5/9/97 18.13 21.30 85.1%
5/16/97 18.41 20.81 88.5%
5/23/97 18.54 21.24 87.3%
5/30/97 18.72 21.06 88.9%
6/6/97 18.78 21.31 88.1%
6/13/97 19.40 22.18 87.5%
6/20/97 19.99 22.30 89.6%
6/27/97 19.91 22.05 90.3%
7/4/97 20.50 22.79 90.0%
7/11/97 20.81 22.78 91.4%
7/18/97 20.44 22.75 89.8%
7/25/97 20.67 23.33 88.6%
8/1/97 20.56 23.54 87.3%
8/8/97 20.34 22.63 89.9%
8/15/97 19.77 22.39 88.3%
8/22/97 20.41 22.78 89.6%
8/29/97 20.78 22.18 93.7%
9/5/97 20.45 22.91 89.3%
9/12/97 20.41 22.78 89.6%
9/19/97 20.73 23.44 88.4%
9/26/97 20.54 23.31 88.1%
10/3/97 20.96 23.80 88.1%
10/10/97 21.59 23.85 90.5%
10/17/97 21.06 23.28 90.5%
10/24/97 21.34 23.22 91.9%
10/31/97 19.81 22.56 87.8%
11/7/97 19.95 22.87 87.2%
11/14/97 19.88 22.89 86.9%
11/21/97 20.50 23.73 86.4%
11/28/97 20.33 23.54 86.4%
12/5/97 20.92 24.24 86.3%
12/12/97 20.29 23.46 86.5%
12/19/97 19.41 23.30 83.3%
12/26/97 19.80 23.04 85.9%
'98 20.54 23.99 85.6%
1/9/98 20.03 22.83 87.7%
1/16/98 20.70 23.66 87.5%
1/23/98 19.44 23.56 82.5%
1/30/98 19.44 23.56 82.5%
2/6/98 20.29 24.91 81.5%
2/13/98 20.50 24.54 83.5%
2/20/98 20.41 25.69 79.4%
2/27/98 20.56 26.07 78.9%
3/6/98 20.59 26.47 77.8%
3/13/98 20.54 26.87 76.4%
3/20/98 20.91 27.64 75.7%
3/27/98 20.92 27.54 76.0%
4/3/98 21.99 28.27 77.8%
4/10/98 21.49 27.96 76.9%
4/17/98 21.76 28.27 77.0%
4/24/98 21.41 27.89 76.8%
5/1/98 21.62 28.22 76.6%
5/8/98 21.03 27.90 75.4%
5/15/98 20.82 27.91 74.6%
5/22/98 20.58 28.08 73.3%
5/29/98 20.30 27.59 73.6%
6/5/98 20.37 28.17 72.3%
6/12/98 20.00 27.79 72.0%
6/19/98 19.70 27.84 70.8%
6/26/98 20.23 28.66 70.6%
7/3/98 20.59 28.99 71.0% 28.10
7/10/98 20.60 29.45 69.9%
7/17/98 20.78 30.01 69.2%
7/24/98 19.78 28.85 68.6%
7/31/98 18.73 28.34 66.1%
8/7/98 18.97 27.55 68.9%
8/14/98 17.9 27.4 65.4%
8/21/98 16.93 27.75 61.0%
8/28/98 16.19 26.36 61.4%
9/4/98 15.11 24.99 60.5%
9/11/98 15.27 25.89 59.0%
9/18/98 15.69 26.18 59.9%
9/25/98 15.79 26.81 58.9%
10/2/98 15.62 25.73 60.7%
10/9/98 14.25 25.26 56.4%
10/16/98 15.27 27.11 56.3%
10/23/98 16.54 27.47 60.2%
10/30/98 17.06 28.19 60.5%
11/6/98 17.61 29.28 60.1%
11/13/98 17.70 28.89 61.3%
11/20/98 17.77 29.58 60.1%
11/27/98 18.10 31.29 57.8%
12/4/98 17.83 30.89 57.7%
12/11/98 17.70 30.62 57.8%
12/18/98 17.28 31.19 55.4%
12/25/98 17.71 32.19 55.0%
'99 17.94 32.27 55.6% 29.56
1/8/99 18.30 33.48 54.7%
1/15/99 18.12 32.64 55.5%
1/22/99 17.67 32.17 54.9%
1/29/99 17.83 33.6 53.1%
2/5/99 17.09 32.54 52.5%
2/12/99 16.70 32.3 51.7%
2/19/99 17.11 32.53 52.6%
2/26/99 17.02 32.85 51.8%
3/5/99 17.11 33.83 50.6%
3/12/99 17.15 34.34 49.9%
3/19/99 16.69 34.46 48.4%
3/26/99 16.45 34.02 48.4%
4/2/99 15.84 34.30 46.2% 33.31
4/9/99 15.83 35.76 44.3%
4/16/99 16.50 34.98 47.2%
4/23/99 16.83 35.98 46.8%
4/30/99 16.90 35.41 47.7%
5/7/99 17.09 35.67 47.9%
5/14/99 16.86 35.48 47.5%
5/21/99 16.90 35.28 47.9%
5/28/99 16.51 33.87 48.7%
6/4/99 16.80 34.54 48.6%
6/11/99 16.43 33.65 48.8%
6/18/99 16.96 34.93 48.6%
6/25/99 17.34 33.91 51.1%
7/2/99 17.82 35.38 50.4% 34.99
7/9/99 18.09 36.25 49.9%
7/16/99 18.01 36.56 49.3%
7/23/99 18.18 36.97 49.2%
7/30/99 17.20 34.62 49.7%
8/6/99 16.64 33.88 49.1%
8/13/99 16.65 34.59 48.1%
8/20/99 16.60 34.83 47.7%
8/27/99 16.50 35.13 47.0%
9/3/99 16.28 33.02 49.3%
9/10/99 16.60 32.89 50.5%
9/17/99 16.10 32.49 49.6%
9/24/99 15.90 31.14 51.1%
10/1/99 16.14 31.27 51.6% 34.13
10/8/99 15.92 32.57 48.9%
10/15/99 15.21 30.41 50.0%
10/22/99 15.35 31.73 48.4%
10/29/99 15.90 33.23 47.8%
11/5/99 15.65 33.4 46.9%
11/12/99 15.68 34.03 46.1%
11/19/99 15.90 32.35 49.1%
11/26/99 15.95 32.23 49.5%
12/3/99 16.03 32.6 49.2%
12/10/99 15.61 32.23 48.4%
12/17/99 15.55 32.33 48.1%
12/24/99 15.35 33.13 46.3%
'00 15.75 33.42 47.1%
1/7/00 15.35 32.99 46.5%
1/14/00 15.55 33.33 46.7%
1/21/00 15.34 32.79 46.8%
1/28/00 14.81 30.94 47.9%
2/4/00 14.92 32.4 46.0%
2/11/00 14.55 31.55 46.1%
2/18/00 14.11 30.62 46.1%
2/25/00 15.19 30.33 50.1%
3/3/00 15.11 33.06 45.7%
3/10/00 14.70 28.91 50.8%
3/17/00 14.55 30.35 47.9%
3/24/00 14.81 31.65 46.8%
3/31/00 15.50 31.05 49.9%
4/7/00 15.61 31.42 49.70%
4/14/00 14.89 28.16 52.90%
4/21/00 14.63 29.78 49.10%
4/28/00 15.07 30.15 50.00%
5/5/00 15.01 29.74 50.50%
5/12/00 14.90 29.5 50.50%
5/19/00 14.75 29.21 50.50%
5/26/00 14.45 27.03 53.50%
6/2/00 14.82 28.98 51.10%
6/9/00 14.86 28.58 52.00%
6/16/00 14.92 28.73 51.90%
6/23/00 14.24 28.28 50.40%
6/30/00 14.28 28.56 50.00%
This chart shows a ratio of ratios, tracking the relationship of a
capitalization weighted P/E ratio compared to the median P/E ratio for a
universe of about 3,000 stocks. When this ratio of ratios is above 100%, it
indicates that small-caps (the median P/E) are priced at valuations above the
cap weighted P/E ratio. With the small-cap P/E now below the historical median,
the chart suggests that small-caps may be very cheap relative to large-caps.
From the end of 1975 through 1983, Small Caps outperformed Big Caps by a
considerable margin. The Value Line Index was up 183% over this time versus 72%
for the DJIA and 114% for the S&P 500. Small Caps were also clearly
outperformers subsequent to 1987, 1990 and 1992 when this Ratio of Ratios had
also moved below 70%.
Investments in small-cap stocks present risks in addition to those presented by
investments in large-cap stocks, including increased price volatility and less
liquidity.
The performance information presented is not intended to be indicative of any
Heartland Fund.
Value Report 3
<PAGE>
Heartland Select Value Fund
[PHOTO HERE]
M. Gerard Sandel, CFA
Lead Portfolio Manager
[PHOTO HERE]
William J. Nasgovitz
Portfolio Co-Manager
[PHOTO HERE]
Eric J. Miller, CMA
Portfolio Co-Manager
--------------------------------------------------------------------------------
"For the first half of this year, however, our ability to choose among all
market cap arenas to find the best value opportunities was a primary reason for
the Fund's strong year-to-date returns."
--------------------------------------------------------------------------------
We continue to make significant progress in improving the Select Value Fund's
performance since it was restructured last December. Throughout the first half
of 2000, the fund has performed admirably in beating its benchmark index despite
some extremely volatile market conditions. As of June 30, 2000, the Fund
returned 4.69%, while its benchmark, the S&P Barra Midcap Value Index returned
3.45%.
If we look back at 1998, the trend in the market was to invest in the largest of
the large-cap stocks. This changed in 1999, however, as money flowed into tech-
oriented growth momentum stocks. In each year, investors fortunate enough to
anticipate these trends were handsomely rewarded. At Heartland, we now see a new
trend developing with mid- and small-cap stocks beginning to outperform, as
indicated by the S&P data shown below.
Performance of broad market sectors according to S&P
YTD returns
Sector as of 6/30/00
Mid-cap (S&P Mid Cap 400 Index) 8.97%
Small-cap (S&P Small Cap 600 Index) 6.89%
Large-cap (S&P 500 Index) -0.42%
Market capitalization of Select Value Fund holdings
Large caps Small caps
24.9% 52.1%
Mid caps
23.0%
The table above shows that the outperformance of mid- and small-cap companies
throughout the first half of the year has been sizeable. With more than 75% of
its securities in small- and mid-cap companies, we feel the Select Value Fund is
positioned extremely well for a period of outperformance in these sectors.
In addition, the quarter ended June 30, 2000 was strong for value stocks. As a
number of indicators pointed to a slowing economy, investors grew more cautious
about the prospects of high P/E stocks, and retreated to the relative safety of
lower P/E stocks, especially in health care, utility, and other defensive
sectors. As a result, during the second quarter, value significantly
outperformed growth across the capitalization ranges:
Quarter-to-Date Returns as of 6/30/00
-------------------------------------
Index Value Growth Difference
Lipper Small-Cap 1.31% -5.35% 6.66%
Lipper Mid-Cap -2.06 -8.72 6.66
Lipper Large-Cap -2.13 -7.30 5.17
4 | Semi-Annual: July 1, 2000
<PAGE>
Select Value Fund
Growth of $10,000 since inception
(inception date 10/11/96)
-------------------------------------------------------------------------
Select Value... S&P 500 S&P Barra Midcap Value
-------------------------------------------------------------------------
10/11/96 10000.00 10000.00 10000.00
-------------------------------------------------------------------------
12/96 10500.00 10714.00 10892.00
-------------------------------------------------------------------------
10660.00 11002.00 10890.00
-------------------------------------------------------------------------
12140.00 12923.00 12165.00
-------------------------------------------------------------------------
13270.00 13891.00 13886.00
-------------------------------------------------------------------------
12/97 12905.00 14289.00 14367.00
-------------------------------------------------------------------------
14542.00 16283.00 16078.00
-------------------------------------------------------------------------
13650.00 16821.00 15411.00
-------------------------------------------------------------------------
11468.00 15148.00 13258.00
-------------------------------------------------------------------------
12/98 13129.00 18372.00 15321.00
-------------------------------------------------------------------------
12396.00 19289.00 14087.00
-------------------------------------------------------------------------
14184.00 20649.00 16191.00
-------------------------------------------------------------------------
12756.00 19359.00 14614.00
-------------------------------------------------------------------------
12/99 13384.00 22240.00 15677.00
-------------------------------------------------------------------------
13966.00 22748.00 16660.00
-------------------------------------------------------------------------
6/00 14012.00 22144.00 16217.00
-------------------------------------------------------------------------
/1/For comparison purposes, the value of the S&P Barra Midcap Value Index on
September 30, 1996 is used as the beginning value on October 11, 1996.
Utilities and our current favorite -- energy -- were sectors that helped the
Fund's performance. Utility companies have proven to be formidable competitors
due to industry deregulation and they represent a defensive play with some
growth prospects. The portfolio's energy and energy service holdings fared very
well over the past six months, leading us to take profits in a few names.
For the first half of this year, however, our ability to choose among all market
cap arenas to find the best value opportunities was a primary reason for the
Fund's strong year-to-date returns. And, in an increasingly volatile market, we
are confident that investors will continue to find attractive valuations in the
lower capitalization sectors.
Anticipating a surge in oil and gas
Stewart & Stevenson, a supplier of petroleum equipment, power products and
services in support of oil and gas related businesses, depends heavily upon what
happens in the energy sector for its success. In short, increased oil and gas
demand favorably impacts its operations. Should demand for oil, gas, and
services surrounding this sector enjoy a surge, Stewart & Stevenson may feel
some power of its own. Also, a recent contract with the U.S. Army to build
military trucks will boost production and improve margins. Further, with a new
management in place, the outlook for streamlined efficiency and financial
operations is bright. We're not the only ones sensing the
possibilities--insiders have also been buying back the stock. Given all this
information, we're expecting earnings to double during this fiscal year and we
believe this company's potential energy boost could be a great value
opportunity.
As of June 30, 2000
--------------------------------------------------------------------------------
Average Annual Total Returns
One Three Since Inception
Year Year (10/11/96)
--------------------------------------------------------------------------------
Heartland Select Value Fund -1.21% 4.90% 9.50%
--------------------------------------------------------------------------------
S&P Barra Midcap Value Index 0.17 10.06 13.77/1/
--------------------------------------------------------------------------------
S&P 500 Index 7.25 19.66 23.84
--------------------------------------------------------------------------------
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
Number of holdings................................................. 35
Net assets......................................................... $6.6 mil.
NAV................................................................ $12.28
Median market cap.................................................. $1.5 bil
Weighted average market cap........................................ $12.0 bil
Fund vs. S&P Barra Midcap Value Index
Alpha........................................................... 0.98
Beta............................................................ 0.57
R-squared....................................................... 0.50
Valuation Analysis
[GRAPHS APPEAR HERE]
'00 Price/Earnings Price/Cash Flow Price/Book
Heartland Select Value Fund 14.1X 7.8X 5.2X
S&P Barra Midcap Value Index 18.4X 17.2X 2.9X
S&P 500 24.9X 11.3X 2.4X
Excludes negative earnings. Source: Russell Analytics, S&P Barra, and Heartland
Advisors, Inc.
Top Holdings -- % of Net Assets
Steelcase, Inc. (Class A)............................................ 5.25%
Stewart & Stevenson Services, Inc.................................... 4.22
Allstate Corporation................................................. 4.12
Washington Mutual, Inc............................................... 4.04
Chase Manhattan Corporation.......................................... 3.71
SBC Communications, Inc.............................................. 3.58
The Healthcare Corporation........................................... 3.57
Wolverine World Wide, Inc............................................ 3.44
Southern Company..................................................... 3.30
Henry Schein, Inc.................................................... 3.30
-------
Total 38.53%
Past performance is not predictive of future results.
The Select Value Fund has changed its primary benchmark index to the S&P Barra
Midcap Value Index from the S&P 500 Stock Index in connection with a change in
its investment policies effective December 6, 1999. Prior to that date, the Fund
was named the Heartland Large Cap Value Fund and was required to invest
primarily in large-cap stocks. Effective December 6, 1999, the Fund invests in
companies of all sizes. The new index is believed to be more representative of
the Fund for comparative purposes.
The Fund invests in small companies which involve risks in addition to those
presented by investments in large companies, including increased price
volatility and less liquidity.
Advisor voluntarily waives a portion of the Fund's expenses, but reserves the
right to change the level of the waiver. Without such waiver, total returns
would have been lower.
As of June 30, 2000, Stewart & Stevenson Services, Inc. represented 4.22% of the
Fund's net assets. Portfolio holdings are subject to change without notice.
--------------------------------------------------------------------------------
Value Report| 5
<PAGE>
Heartland Value Plus Fund
[PHOTO HERE]
William J. Nasgovitz
Portfolio Co-Manager
[PHOTO HERE]
M. Gerard Sandel, CFA
Portfolio Co-Manager
--------------------------------------------------------------------------------
"With the Fund's small cap focus (featuring a median market cap of only $99
million), we believe our low P/E wallflowers will, in time, be discovered and
afforded higher valuations."
--------------------------------------------------------------------------------
The Value Plus Fund had a positive first half of the year with a 2.12% total
return.
Who Shrunk the P/E?
Frankly, we thought the performance of the Fund would have been better year-to-
date. True, results were hampered somewhat by several underperformers. Stone &
Webster, WPR Corp., International Aluminum and Bolder Technologies were sold due
to deterioration in their earnings, balance sheets, or lack of compelling
catalysts.
To a greater extent, however, the portfolio's performance was impacted by the
average price-to-earnings (P/E) ratio of the Fund's holdings shrinking from 10.5
times at year-end to 9.9 times. This reduction was in the face of growth in the
portfolio's aggregate earnings during the first half.
Small Cap Resurgence
We believe the continuing outperformance by small stocks versus their large cap
counterparts bodes well for the Fund. Last year the Russell 2000 (small company)
Index outpaced the S&P 500 for the first time since 1993 and, for the six months
ended June 30, 2000, that dominance continued with the Russell 2000 advancing
3.04% while the S&P declined 0.42%. With the Fund's small cap focus (featuring a
median market cap of only $99 million), we believe our low P/E wallflowers will,
in time, be discovered and afforded higher valuations.
Earnings Do Matter
Current market trends seem to indicate renewed investor interest in good old-
fashioned corporate profitability. The price one pays for those earnings also
seems to be more important today. Many of last year's parabolic advances,
especially internet, technology and telecommunication stocks, have come back to
earth with a thud. After one of the largest divergences ever between growth and
value, we saw the Russell 2000 Value Index significantly outperform the Russell
2000 Growth Index in the first half of this year as low P/E stocks in general
are rediscovered.
Although trailing our benchmark indices, we are confident that the Fund's
compelling valuations should attract investor interest. The valuation analysis
charts to the right show the Fund's holdings priced at only 9.9 times estimated
earnings, 6.3 times trailing cash flow, and 1.5 times book value. In our view
these are bargain basement valuations, especially in light of projected earnings
growth of 15% for the Fund's holdings.
6 |Semi-Annual: July 1, 2000
<PAGE>
Value Plus Fund
Growth of $10,000 since inception
(inception date 12/26/93)
----------------------------------------------------------------
Value Plus Russell 2000 Russell 2000 Value
--------------------------------------------------------------
12/26/... 10000.00 10000.00 10000.00
----------------------------------------------------------------
10522.00 10147.00 10138.00
----------------------------------------------------------------
10584.00 9877.00 9999.00
----------------------------------------------------------------
10153.00 9492.00 9820.00
----------------------------------------------------------------
10263.00 10151.00 10285.00
----------------------------------------------------------------
12/94 10001.00 9962.00 9981.00
----------------------------------------------------------------
10672.00 10421.00 10351.00
----------------------------------------------------------------
11794.00 11398.00 11259.00
----------------------------------------------------------------
12507.00 12524.00 12195.00
----------------------------------------------------------------
12/95 12441.00 12796.00 12551.00
----------------------------------------------------------------
13270.00 13448.00 13101.00
----------------------------------------------------------------
14374.00 14121.00 13637.00
----------------------------------------------------------------
14983.00 14169.00 13840.00
----------------------------------------------------------------
12/96 16646.00 14905.00 15233.00
----------------------------------------------------------------
17219.00 14135.00 15195.00
----------------------------------------------------------------
18408.00 16426.00 17488.00
----------------------------------------------------------------
21257.00 18870.00 19742.00
----------------------------------------------------------------
12/97 21740.00 18238.00 20074.00
----------------------------------------------------------------
22622.00 20073.00 21750.00
----------------------------------------------------------------
21597.00 19137.00 20965.00
----------------------------------------------------------------
18736.00 15282.00 17217.00
----------------------------------------------------------------
12/98 19396.00 17774.00 18779.00
----------------------------------------------------------------
17831.00 16812.00 16959.00
----------------------------------------------------------------
21165.00 19427.00 19766.00
----------------------------------------------------------------
18222.00 18199.00 18220.00
----------------------------------------------------------------
12/99 19720.00 21555.00 18500.00
----------------------------------------------------------------
21433.00 23082.00 19207.00
----------------------------------------------------------------
6/00 20138.00 22210.00 19581.00
----------------------------------------------------------------
As we stated at year-end, "We believe the time is ripe for a reversal in
leadership." Now that value investing is back in style, we continue to believe
the Fund is positioned to take advantage of renewed interest in quality small-
cap companies selling at discounted valuations.
Solving a value riddle
When is a chemical not a chemical?
When it's semiconductor related! Semiconductor stocks have had a huge two-year
run and trade at high multiples despite some recent corrections. Chips are
showing up everywhere today--electronic games, cell phones, automobiles, and
electric appliances. This spectacular growth (chip sales totaled $17.6 billion
in June, up 61% over June of 1999) is likely to continue as they further
penetrate every aspect of our life. We liked the semiconductor industry growth
but not the price-to-earnings risk associated with its high valuations.
Our chemical sector analyst identified Arch Chemicals, an orphaned spinoff of
Olin Corporation, as a chemical company with a growing semiconductor
photopolymers business. In addition, Arch had entered into a joint venture to
provide chemicals for emerging technologies for semiconductor chip making
operations. These joint ventures offer important growth opportunities. The
company trades at 10.6 times earnings and 50% of sales, a significant discount
to its peer group. Its solid balance sheet made it particularly attractive. Arch
represented an opportunity to participate in the tremendous growth of the
semiconductor industry without the risk of semiconductor chip industry price to
earnings ratios over 50 times earnings.
As of June 30, 2000
--------------------------------------------------------------------------------
June SEC Yield
--------------------------------------------------------------------------------
Heartland Value Plus Fund................................................ 1.67%
--------------------------------------------------------------------------------
Average Annual Total Returns
One Three Five Since Inception
Year Year Year (10/26/93)
--------------------------------------------------------------------------------
Heartland Value Plus Fund -4.85% 3.04% 11.29% 11.05%
--------------------------------------------------------------------------------
Russell 2000 Value Index -0.94 3.84 11.70 10.59
--------------------------------------------------------------------------------
Russell 2000 Index 14.32 10.57 14.27 12.69
--------------------------------------------------------------------------------
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
Number of holdings.................................................. 35
Net assets.......................................................... $70.2 mil.
NAV................................................................. $13.70
Median market cap................................................... $99 mil.
Weighted average market cap......................................... $351 mil.
Fund vs. Russell 2000 Value Index
Alpha............................................................. 0.79
Beta.............................................................. 0.81
R-squared......................................................... 0.70
Valuation Analysis
[GRAPHS APPEAR HERE]
'00 Price/Earnings Price/Cash Flow Price/Book
Heartland Value Plus Fund 9.9X 6.3X 1.5X
Russell 2000 Value 10.8X 7.7X 1.4X
Russell 2000 19.7X 16.0X 2.4X
Excludes negative earnings
Source: Russell Analytics, S&P Barra, and Heartland Advisors, Inc.
Top Holdings -- % of Net Assets
Structural Dynamics Research............................................ 5.90%
K2, Inc................................................................. 5.33
Flexsteel Industries, Inc............................................... 5.24
Southwestern Energy Company............................................. 5.07
Lifecore Biomedical, Inc................................................ 5.05
Ansys, Inc.............................................................. 4.86
Sholodge, Inc. 7.50% 05/01/04........................................... 4.45
Arch Chemicals.......................................................... 4.06
Banta Corporation....................................................... 4.05
ICN Pharmaceuticals, Inc................................................ 3.96
------
Total 47.97%
Past performance is not predictive of future results. The Fund invests primarily
small companies, which involve risks in addition to those presented by
investments in large companies, including increased price volatility and less
liquidity.
Subject to certain exceptions, shares of the Fund redeemed or exchanged within
270 days of purchase are subject to 1% redemption fee.
As of June 30, 2000, Arch Chemicals represented 4.06% of the Fund's net assets.
Portfolio holdings are subject to change without notice.
--------------------------------------------------------------------------------
Value Report| 7
<PAGE>
Heartland Value Fund
[PHOTO HERE]
William J. Nasgovitz
Portfolio Co-Manager
[PHOTO HERE]
Eric J. Miller, CMA
Portfolio Co-Manager
--------------------------------------------------------------------------------
"Small stocks are finally outperforming their large cap counter parts for the
first time in six years. We believe we are in the early stages of what may prove
to be a multi-year period of outperformance from the sector."
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Table 1
The Largest Stocks in The Russell 2000
Have Powered Its Advance
Contribution To Return
12/31/99 to 6/30/00
Market Cap ($ million) Total Return
----------------------------------------------------------------
Quintile 1: $786-$6,484 2.31%
Quintile 2: $519-$786 2.12
Quintile 3: $334-$519 4.76
Quintile 4: $217-$334 -5.43
Quintile 5: $0-$217 -5.44
Total 1.47%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Table 2
Big Opportunities in Small Caps
Valuation Analysis of the Russell 2000 (as of 6/30/00)
Price
to Earnings Price Dividend
Market Cap Estimates* to Book Yields
--------------------------------------------------------------------------------
Quintile 1 16.3x 2.6x .9%
Quintile 2 13.1 1.9 1.2
Quintile 3 12.5 1.9 1.5
Quintile 4 11.1 1.6 1.5
Quintile 5 9.7 1.2 2.1
Total 13.5x 2.0x 1.2%
--------------------------------------------------------------------------------
*Source: Factset, for the Fiscal Year 2000
Following the Value Fund's outstanding 25.01% total return in 1999, our first
half results are disappointing. The Fund's total return of -6.70% lagged the
Russell 2000 Value and the Russell 2000 returns of 5.85% and 3.04%,
respectively.
A significant part of this performance disparity is due to the narrowness of the
small cap market. Owning the "right" stocks has never been more important and
"right" for the first part of this year has meant owning the largest small caps.
Table 1 below breaks down the Russell 2000 Index into quintiles based on market
capitalization. Quintiles 1-3 (composed of companies with market caps of $334
million and above) all showed positive returns for the year. Conversely,
quintiles 4 and 5 were down more than 5% for the first half of the year. With a
median market cap of $96 million and over 90% of the Fund's stocks falling into
these underperforming quintiles, our results suffered.
The Smaller the Market Cap, the Better the Value
We believe, however, this performance bifurcation in small stocks has set up
opportunities for the bargain hunter looking for long-term capital appreciation.
Table 2 to the left details the compelling valuations within quintiles 4 and 5.
In our view, the smallest of the small represent the best values in the U.S.
equity marketplace.
Evidence of a Turnaround
Small stocks are finally outperforming their large cap counter parts for the
first time in six years/1/. We believe we are in the early stages of what may
prove to be a multi-year period of outperformance from the sector.
A good example of this broadening out was the performance of small cap oil and
gas stocks during the first half of 2000. Energy was among this year's top
performing sectors and the Fund's healthy exposure was a positive contributor.
Fueled by rising oil and gas prices and positive earnings surprises, this sector
came alive after being out of favor for years.
Strategic Investor Interest in Small Cap Value
The "dirt cheap" valuation levels in small/micro caps continue to create a
strong environment for mergers and management buyouts. Even in the face of
rising interest rates, 15 of the Fund's positions caught the attention of
sophisticated investors. All of these mergers/take-out offers were at premiums
to their public market price.
8 |Semi-Annual: July 1, 2000
<PAGE>
Value Fund
Growth of $10,000 over last 10 years
Value Fund Russell 2000 Russell 2000 Value
=============================================================
"6/90" 10000.00 10000.00 10000.00
-------------------------------------------------------------
7561.00 7546.00 7706.00
-------------------------------------------------------------
7763.00 7926.00 7865.00
-------------------------------------------------------------
10033.00 10282.00 10136.00
-------------------------------------------------------------
"6/91" 9992.00 10123.00 10192.00
-------------------------------------------------------------
10637.00 10948.00 10786.00
-------------------------------------------------------------
11594.00 11575.00 11145.00
-------------------------------------------------------------
13919.00 12444.00 12516.00
-------------------------------------------------------------
"6/92" 12793.00 11595.00 12267.00
-------------------------------------------------------------
13609.00 11927.00 12717.00
-------------------------------------------------------------
16519.00 13707.00 14392.00
-------------------------------------------------------------
17766.00 14293.00 15794.00
-------------------------------------------------------------
"6/93" 17491.00 14605.00 16049.00
-------------------------------------------------------------
18931.00 15881.00 17369.00
-------------------------------------------------------------
19620.00 16298.00 17824.00
-------------------------------------------------------------
20271.00 15866.00 17581.00
-------------------------------------------------------------
"6/94" 19983.00 15248.00 17269.00
-------------------------------------------------------------
20355.00 16306.00 18085.00
-------------------------------------------------------------
19956.00 16001.00 17548.00
-------------------------------------------------------------
21686.00 16739.00 18198.00
-------------------------------------------------------------
"6/95" 23812.00 18308.00 19795.00
-------------------------------------------------------------
26060.00 20116.00 21442.00
-------------------------------------------------------------
25903.00 20552.00 22067.00
-------------------------------------------------------------
27423.00 21601.00 23035.00
-------------------------------------------------------------
"6/96" 29370.00 22681.00 23976.00
-------------------------------------------------------------
29416.00 22758.00 24333.00
-------------------------------------------------------------
31340.00 23942.00 26782.00
-------------------------------------------------------------
31439.00 22704.00 26715.00
-------------------------------------------------------------
"6/97" 35747.00 26384.00 30747.00
-------------------------------------------------------------
41024.00 30311.00 34710.00
-------------------------------------------------------------
38609.00 29296.00 35294.00
-------------------------------------------------------------
42337.00 32242.00 38241.00
-------------------------------------------------------------
"6/98" 40114.00 30739.00 36860.00
-------------------------------------------------------------
32666.00 24546.00 30270.00
-------------------------------------------------------------
34183.00 28550.00 33017.00
-------------------------------------------------------------
31359.00 27001.00 29816.00
-------------------------------------------------------------
"6/99" 38175.00 31200.00 34753.00
-------------------------------------------------------------
35327.00 29227.00 32035.00
-------------------------------------------------------------
42733.00 34618.00 32526.00
-------------------------------------------------------------
41870.00 37071.00 33769.00
-------------------------------------------------------------
"6/00" 39872.00 35670.00 34428.00
-------------------------------------------------------------
Also, the cheaper valuation levels have continued to spur company managements to
buy back stock. Currently more than 50% of the Fund's portfolio companies are
actively retiring shares. We think this reduction in supply should, over time,
result in improved prices.
In recent years, we have seen investors focus primarily on large cap glamour
stocks leaving most smaller companies and value stocks behind. While it is
impossible to predict the future direction of the stock market, we believe
current market conditions present one of the best buying opportunities in the
small-capitalization sector. We feel that the Value Fund is well-positioned to
take advantage of these opportunities.
A Sweet Buyout Bid
One such opportunity was Cherry Corporation, an industrial and electronics
company that makes electrical switches and sensors along with computer
keyboards. It's also a great example of value investing at work. Cherry always
had strong fundamentals, but with its stock languishing below book value at
approximately $12 per share, it remained undiscovered by the street. After
efforts to obtain a more favorable stock price failed, Chairman Peter Cherry
offered to buy out public shareholders at $18.75 per share. We held out. Why?
Our research showed the intrinsic worth of the company was far greater and that,
with the cash on the company's balance sheet from a recent sale, Cherry would be
able to buy the shares with cash to spare. It took an offer from an undisclosed
source of $26 per share to cause Peter Cherry to raise his bid to $26.40. The
Value Fund sold out of its position in late June and booked a sweet capital
gain.
As of June 30, 2000
--------------------------------------------------------------------------------
Average Annual Total Returns
One Five Ten Fifteen Since Inception
Year Year Year Year (12/28/84)
--------------------------------------------------------------------------------
Heartland Value Fund 4.45% 10.86% 14.83% 13.51% 14.58%
--------------------------------------------------------------------------------
Russell 2000 Value Index -0.94 11.70 13.16 12.12 12.90
--------------------------------------------------------------------------------
Russell 2000 Index 14.32 14.27 13.56 12.22 13.06
--------------------------------------------------------------------------------
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
Number of holdings.................................................... 225
Net assets............................................................ $1.0 bil.
NAV................................................................... $32.93
Median market cap..................................................... $96 mil.
Weighted average market cap........................................... $438 mil.
Fund vs. Russell 2000 Value Index
Alpha.............................................................. 1.04
Beta............................................................... 1.04
R-squared.......................................................... 0.69
Valuation Analysis
[GRAPHS APPEAR HERE]
'00 Price/Earnings Price/Cash Flow Price/Book
Heartland Value Fund 14.7X 8.2X 1.9X
Russell 2000 Value 10.8X 7.7X 1.4X
Russell 2000 19.7X 16.0X 2.4X
Excludes negative earnings
Source: Russell Analytics, S&P Barra, and Heartland Advisors, Inc.
Top Holdings -- % of Net Assets
ICN Pharmaceuticals, Inc................................................ 6.70%
Henry Schein, Inc....................................................... 2.36
InterDigital Communications Corporation................................. 1.94
Perrigo Company......................................................... 1.88
NABI.................................................................... 1.79
US Oncology, Inc........................................................ 1.65
Republic Services, Inc.................................................. 1.56
Pharmaceutical Product Development, Inc................................. 1.54
Presidential Life Corporation........................................... 1.36
Beverly Enterprises, Inc................................................ 1.33
-----
Total 22.11%
Past performance is not predictive of future results. The Fund invests primarily
small companies, which involve risks in addition to those presented by
investments in large companies, including increased price volatility and less
liquidity.
Subject to certain exceptions, shares of the Fund redeemed or exchanged
within 270 days of purchase are subject to a 1% redemption fee.
As of June 30, 2000, Cherry Corp. (Class A) represented 0.00% of the Fund's net
assets. Portfolio holdings are subject to change without notice.
/1/ Based on S&P 500 and Russell year-end returns from 1994-1999.
--------------------------------------------------------------------------------
Value Report| 9
<PAGE>
[LOGO]
EQUITY FUNDS
Financial Statements
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SELECT VALUE FUND
<TABLE>
<CAPTION>
Percent of
COMMON STOCKS Shares Industry Value Net Assets
<S> <C> <C> <C> <C>
Low Price/Earnings Ratios
Allstate Corporation 12,300 Insurance $ 273,675 4.1%
Chase Manhattan Corporation (a) 5,350 Banking 246,434 3.7
Clayton Homes, Inc. 19,100 Manufactured Housing 152,800 2.3
Cooper Tire & Rubber Company 15,000 Parts and Distribution 166,875 2.5
Host Marriott Corporation (REIT) 20,300 REITS 190,313 2.9
LaFarge Corporation 5,700 Cement and Aggregates 119,700 1.8
Saucony, Inc. (Class B) (a) 14,000 Athletic Footwear 138,250 2.1
Trinity Industries, Inc. 5,000 Industrial Manufacturing 92,500 1.4
Washington Mutual, Inc. 9,300 Banking 268,538 4.0
---------- ------
$1,649,085 24.8%
Low Price/Cash Flow Ratios
The B.F. Goodrich Company 5,300 Aerospace $ 180,531 2.7%
Boston Scientific Corporation (a) 8,750 Medical Supplies 191,953 2.9
Helmerich & Payne, Inc. 3,000 Oil Services and Equipment 112,125 1.7
Henry Schein, Inc. (a) 12,700 Medical Supplies 219,075 3.3
Liz Claiborne, Inc. 1,900 Retail 66,975 1.0
Newmont Mining Corporation 7,500 Precious Metals 162,188 2.4
RPM, Inc. 19,000 Building Products 192,375 2.9
Southern Company 9,400 Electricity Provider 219,138 3.3
Steelcase, Inc. (Class A) 20,500 Business Furniture 348,500 5.2
Structural Dynamics Research (a) 12,600 Data Management Software 189,784 2.9
Tenet Healthcare Corporation 6,900 Hospitals 186,300 2.8
---------- ------
$2,068,944 31.1%
Low Price to Book Values
Burlington Resources, Inc. (a) 2,600 Exploration and Production $ 99,450 1.5%
CNH Global NV 14,200 Construction Equipment 131,350 2.0
Hoover's, Inc. (a) 15,200 Electronic Commerce 102,600 1.6
IMC Global, Inc. 7,600 Chemicals 98,800 1.5
Kelly Services, Inc. (Class A) 6,500 Staffing 150,313 2.3
Millennium Chemicals, Inc. 8,700 Chemicals 147,900 2.2
Perrigo Company (a) 30,500 Pharmaceuticals 192,531 2.8
Placer Dome, Inc. 21,000 Precious Metals 200,813 3.0
Stewart & Stevenson Services, Inc. 18,600 Construction Equipment 280,163 4.2
Wolverine World Wide, Inc. 23,100 Footwear 228,113 3.4
---------- ------
$1,632,033 24.5%
Special Situations
HCA-The Healthcare Corporation 7,800 Hospitals $ 236,925 3.6%
InterDigital Communications Corporation (a) 7,500 Telecommunications 124,219 1.9
SBC Communications, Inc. 5,500 Telecommunications 237,875 3.6
---------- ------
$ 599,019 9.1%
---------- ------
TOTAL COMMON STOCKS (Cost $6,037,639) $5,949,081 89.5%
--------------------------------------------------------------------------------------------------------------------------------
Par Percent of
SHORT-TERM INVESTMENTS Amount Value Net Assets
--------------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (+) 9.4%
Firstar Bank N.A. 6.34% $385,000 $ 385,000 5.8%
Wisconsin Electric Power Company 6.31% 240,000 240,000 3.6
---------- ------
TOTAL SHORT-TERM INVESTMENTS (Cost $625,000) $ 625,000 9.4%
TOTAL INVESTMENTS (Cost $6,662,639) ...................................................... $6,574,081 98.9%
Cash and receivables, less liabilities ................................................... 65,730 1.1
---------- ------
TOTAL NET ASSETS ......................................................................... $6,639,811 100.0%
========== ======
</TABLE>
(a) Non-income producing security.
(+) Variable rate demand notes are considered short-term obligations and are
payable on demand. Interest rates change periodically on specified dates.
The rates listed are as of June 30, 2000.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
10 | Semi-Annual July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
VALUE PLUS FUND
<TABLE>
<CAPTION>
Percent of
COMMON STOCKS Shares Industry Value Net Assets
<S> <C> <C> <C> <C>
Low Price/Earnings Ratios
Alaska Airgroup, Inc. (a) 100,000 Airlines $ 2,712,500 3.9%
Ansys, Inc. (a) 300,000 Software 3,412,500 4.9
Bando McGlocklin Capital Corporation (REIT) 175,000 REITS 1,509,375 2.2
Capitol Transamerica Corporation 106,000 Insurance-Property/Casualty 1,252,125 1.8
Decorator Industries, Inc. (b) 349,600 Household Furnishings 1,616,900 2.3
Flexsteel Industries, Inc. 300,000 Furniture 3,675,000 5.2
Gabelli Asset Management (Class A) (a) 60,000 Securities Broker 1,500,000 2.1
Hanover Foods Corporation (Class A) (b) 49,500 Foods Processor 2,722,500 3.9
Herbalife International, Inc. (a) 100,000 Health Foods 787,500 1.1
ICN Pharmaceuticals, Inc. 100,000 Pharmaceuticals 2,781,250 4.0
Insteel Industries, Inc. 405,000 Wire Products 2,505,938 3.6
K2, Inc. (a) 450,000 Sporting Goods 3,740,625 5.3
London Pacific Group Ltd. (ADR) 100,000 Insurance-Life 1,300,000 1.9
Siam Food Products Public Company Ltd. (c) 991,800 Food Processor 1,367,127 1.9
TSR, Inc. (a) 100,000 IT Services 550,000 0.8
----------------- -----
$ 31,433,340 44.9%
Low Price/Cash Flow Ratios
Arch Chemicals, Inc. 130,400 Chemicals $ 2,852,500 4.1%
Banta Corporation (a) 150,000 Printing & Publishing 2,840,625 4.0
Kellwood Company 25,000 Apparel 528,125 0.8
Kelly Services, Inc. (Class A) 100,000 Staffing 2,312,500 3.3
Stewart & Stevenson Services, Inc. (a) 50,000 Construction Equipment 753,125 1.1
Structural Dynamics Research (a) 275,000 Data Management Software 4,142,188 5.9
----------------- -----
$ 13,429,063 19.2%
Low Price to Book Values
Aceto Corporation 150,000 Chemicals $ 1,650,000 2.4%
Blimpie International, Inc. (b) 500,000 Restaurants 906,250 1.3
Kennedy-Wilson, Inc. (a) 320,000 Property Management 1,700,000 2.4
Northland Cranberries, Inc. (Class A) 400,000 Soft Drinks 1,550,000 2.2
Southwestern Energy Company 569,200 Natural Gas Distribution 3,557,500 5.1
Tab Products Company (b) 500,000 Information Management 2,000,000 2.8
Tier Technologies, Inc. (Class B) (a) 500,000 IT Services 2,625,000 3.7
----------------- -----
$ 13,988,750 19.9%
Special Situations
Alpha Microsystems (a) 225,000 IT Services $ 1,117,969 1.6%
CVF Technologies Corporation (a) 107,200 IT Services 308,200 0.4
Hoover's, Inc. (a) 250,500 Electronic Commerce 1,690,875 2.4
Lifecore Biomedical, Inc. (a) 450,000 Biotechnology 3,543,751 5.0
----------------- -----
$ 6,660,795 9.4%
----------------- -----
TOTAL COMMON STOCKS (Cost $71,900,199) $ 65,511,948 93.4%
-----------------------------------------------------------------------------------------------------------------------------
Par Percent of
CONVERTIBLE BONDS Amount Value Net Assets
-----------------------------------------------------------------------------------------------------------------------------
Sholodge, Inc. 7.50% 05/01/2004 $ 5,120,000 $ 3,123,200 4.4%
Source Capital Corporation 7.50% 3/01/2008 (d) 1,400,000 972,222 1.4
----------------- -----
TOTAL CONVERTIBLE BONDS (Cost $4,814,123) $ 4,095,422 5.8%
-----------------------------------------------------------------------------------------------------------------------------
Par Percent of
SHORT-TERM INVESTMENTS Amount Value Net Assets
-----------------------------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (+) 0.2%
Firstar Bank N.A. 6.34% $ 125,000 $ 125,000 0.2%
----------------- -----
TOTAL SHORT-TERM INVESTMENTS (Cost $125,000) $ 125,000 0.2%
TOTAL INVESTMENTS (Cost $76,839,322).................................................. $ 69,732,370 99.4%
Cash and receivables, less liabilities................................................ 456,897 0.6
----------------- -----
TOTAL NET ASSETS...................................................................... $ 70,189,267 100.0%
================= =====
</TABLE>
(a) Non-income producing security.
(b) Affiliated company. See Note 9 in Notes to Financial Statements.
(c) Foreign-denominated security.
(d) Restricted security. See Note 2 (i) in Notes to Financial Statements.
(+) Variable rate demand notes are considered short-term obligations and are
payable on demand. Interest rates change periodically on specified dates.
The rates listed are as of June 30, 2000.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
Value Report | 11
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
VALUE FUND
<TABLE>
<CAPTION>
Percent of
COMMON STOCKS Shares Industry Value Net Assets
<S> <C> <C> <C> <C>
Low Price/Earnings Ratios
AAR Corporation 675,000 Airline Support $ 8,100,000 0.8%
Alabama National Bancorporation 110,000 Banking 2,179,375 0.2
The Alpine Group, Inc. (a)(b) 900,000 Telecommunications 6,075,000 0.6
Ambassadors International, Inc. (a) 300,000 Education 4,725,000 0.5
AMERCO (a) 648,000 UHAL & Insurance 12,960,000 1.3
American Physicians Service Group, Inc. (a)(b) 187,200 Specialty Finance 608,400 0.1
AmerUs Life Holdings, Inc. 200,000 Insurance-Life 4,125,000 0.4
Amtran, Inc. (a) 215,500 Airlines 2,680,281 0.3
Associated Banc-Corporation 440,000 Banking 9,597,500 0.9
Atlantic American Corporation (a) 287,500 Insurance-Property/Casualty 772,656 0.1
AVTEAM, Inc. (a)(b) 963,000 Airline Support 1,655,156 0.2
Badger Meter, Inc. (b) 200,000 Electrical Equipment 5,050,000 0.5
Barrett Business Services, Inc. (a)(b) 740,000 Human Resources Management 4,370,625 0.4
Beverly Enterprises, Inc. (a) 4,820,400 Nursing Homes 13,557,375 1.3
Building Materials Holding Corporation (a) 250,000 Building Products 2,203,125 0.2
Capital Corporation of the West (a) 105,000 Banking 1,089,375 0.1
Catalina Lighting, Inc. (a)(b) 710,000 Building Products 3,372,500 0.3
CHC Helicopter Corporation (Class A) (a)(b)(c) 1,000,000 Oil Services and Equipment 3,276,363 0.3
Children's Comprehensive Services, Inc. (a)(b) 460,000 Education 1,408,750 0.1
Comdial Corporation (a)(b) 300,000 Communications Equipment 1,331,250 0.1
Commonwealth Industries, Inc. 700,000 Aluminum Producer 4,112,500 0.4
Cyrk International, Inc. (a) 25,000 Promotional Marketing 125,000 0.0
Dollar Thrifty Automotive Group, Inc. (a) 400,000 Auto Rental 7,375,000 0.7
Donnelly Corporation 400,000 Auto Parts 5,200,000 0.5
Duckwall-ALCO Stores, Inc. (a)(b) 400,000 Discount Retailer 3,300,000 0.3
Engle Homes, Inc. 549,800 Home Builder 5,257,463 0.5
EZcorp, Inc. (Class A) (b) 718,100 Resale Retailer 1,256,675 0.1
Fahnestock Viner Holdings, Inc. 200,000 Securities Broker 3,750,000 0.4
FiberMark, Inc. (a)(b) 391,600 Paper and Forest Products 4,846,050 0.5
Financial Industries Corporation (b) 300,000 Insurance-Life 2,437,500 0.2
Franklin Bank National Association (b) 162,883 Banking 1,303,064 0.1
Friedman Industries, Inc. 315,000 Metal Processor 1,102,500 0.1
Fuji Pharmaceutical Company Ltd. (c) 500,000 Pharmaceuticals 1,886,970 0.2
GA Financial, Inc. 100,000 Banking 1,187,500 0.1
Gehl Company (a) 270,000 Construction Equipment 3,847,500 0.4
Global-Tech Appliances, Inc. 406,000 Household Appliances 1,928,500 0.2
Guangshen Railway Company Ltd. 800,000 Rail Transport 4,000,000 0.4
Gundle/SLT Environmental, Inc. (a)(b) 582,800 Engineering and Construction 2,185,500 0.2
Hallmark Capital Corporation (b) 150,000 Banking 1,368,750 0.1
Hallwood Group Ltd. (a)(b) 80,050 Exploration and Production 620,388 0.1
Hampshire Group, Inc. (a)(b) 264,600 Apparel 1,918,350 0.2
Health Management Systems, Inc. (a) 700,000 Health Information Technology 2,187,500 0.2
Health Power, Inc. (a)(b) 302,500 Health Care Consulting 1,701,563 0.2
HMN Financial, Inc. (b) 253,200 Banking 2,785,200 0.3
Home Federal Bancorp (b) 268,250 Banking 4,426,125 0.4
ICN Pharmaceuticals, Inc. 2,464,800 Pharmaceuticals 68,552,250 6.7
Intermet Corporation 840,000 Metal Processor 5,775,000 0.6
International Aircraft Investors (a)(b) 430,000 Aircraft Rental 2,257,500 0.2
International Airline Support Group, Inc. (a)(b) 239,300 Airline Support 568,338 0.1
Kaye Group, Inc. 363,600 Insurance-Property/Casualty 2,113,425 0.2
K-Tron International, Inc. (a)(b) 275,000 Manufacturing Equipment 4,262,500 0.4
Lindal Cedar Homes, Inc. (a)(b) 345,400 Manufactured Housing 626,038 0.1
LSI Industries, Inc. 300,000 Engineering and Construction 4,556,250 0.4
M/I Schottenstein Homes, Inc. 300,000 Home Builder 4,725,000 0.5
Mapics Inc. (a)(b) 1,800,000 Enterprise Software 10,350,000 1.0
Marten Transport Ltd. (a)(b) 335,000 Trucking 4,355,000 0.4
Massbank Corporation (b) 190,033 Banking 5,320,924 0.5
MDC Holdings, Inc. 248,700 Home Builder 4,632,038 0.5
Meadow Valley Corporation (a)(b) 250,000 Engineering and Construction 843,750 0.1
Midwest Express Holdings, Inc. (a) 300,000 Airlines 6,450,000 0.6
Minntech Corporation (b) 600,000 Medical Equipment 4,050,000 0.4
Motor Club of America (a)(b) 200,000 Insurance-Property/Casualty 1,650,000 0.2
Norstan, Inc. (a) 500,000 IT Services 2,000,000 0.2
Northwest Pipe Company (a) 276,500 Metal Processor 3,283,438 0.3
</TABLE>
12 | Semi-Annual: July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
VALUE FUND [CONT'D]
<TABLE>
<CAPTION>
Percent of
COMMON STOCKS (cont'd) Shares Industry Value Net Assets
<S> <C> <C> <C> <C>
Low Price/Earnings Ratios (cont'd)
Novamerican Steel, Inc. (a) 244,500 Metal Processor $ 2,169,938 0.2%
Osteotech, Inc. (a)(b) 1,200,000 Medical Supplies 12,600,000 1.2
Patrick Industries, Inc. (b) 317,000 Building Materials 1,981,250 0.2
PBOC Holdings, Inc. (a) 550,000 Banking 4,675,000 0.5
Presidential Life Corporation 1,000,000 Insurance-Life 13,875,000 1.4
Professionals Group, Inc. (a) 266,200 Insurance-Property/Casualty 6,505,263 0.6
Raytel Medical Corporation (a)(b) 880,000 Health Care Services 1,540,000 0.2
RCM Technologies, Inc. (a) 200,200 IT Services 1,476,475 0.1
Reliance Steel & Aluminum Company 92,000 Metal Processor 1,759,500 0.2
RemedyTemp, Inc. (Class A) (a) 37,500 Staffing 459,375 0.0
Republic Bancorp, Inc. 730,180 Banking 6,525,984 0.6
Riviera Tool Company (a)(b) 336,262 Metal Stamping 1,155,901 0.1
The Rottlund Company, Inc. (a)(b) 556,000 Home Builder 1,390,000 0.1
Rush Enterprises, Inc. (a)(b) 329,600 Trucking 1,833,400 0.2
Ryan's Family Steak Houses, Inc. (a) 485,000 Restaurants 4,092,188 0.4
Saucony, Inc. (Class B) (a)(b) 400,000 Athletic Footwear 3,950,000 0.4
Shiloh Industries, Inc. (a) 268,700 Metal Processor 2,569,444 0.3
ShopKo Stores, Inc. (a) 750,000 Retail 11,531,250 1.1
Sifco Industries, Inc. 200,000 Specialty Metalwork 1,250,000 0.1
St. Francis Capital Corporation 225,000 Banking 3,403,125 0.3
Steel Technologies, Inc. 172,000 Metal Processor 1,225,500 0.1
Steris Corporation (a) 500,000 Medical Equipment 4,437,500 0.4
Sterling Financial Corporation (a) 275,000 Banking 3,162,500 0.3
Summit Bank Corporation 76,800 Banking 1,142,400 0.1
United Security Bancorporation (a) 226,832 Banking 2,183,259 0.2
URS Corporation (a)(b) 880,000 Engineering and Construction 13,420,000 1.3
US Oncology, Inc. (a) 3,370,000 Health Care - Oncology 16,850,000 1.6
Wackenhut Corrections Corporation (a) 500,000 Correctional Facilities 3,750,000 0.4
Washington Homes, Inc. (a) 180,300 Housing 1,081,800 0.1
Wilsons The Leather Experts, Inc. (a) 513,750 Leather Apparel 7,545,703 0.7
Wisconsin Central Transport Corporation (a) 500,000 Rail Transport 6,500,000 0.6
Woodward Governor Company (b) 145,500 Fuel Delivery Systems 4,119,469 0.4
--------------- ----
$ 445,780,004 43.3%
Low Price/Cash Flow Ratios
Akita Drilling Ltd. (Class A) (b)(c) 248,600 Oil Services and Equipment $ 1,847,328 0.2%
Burns International Services Corporation (a) 750,000 Security Services 9,375,000 0.9
Business Resource Group (a)(b) 500,000 IT Services 3,187,500 0.3
Carey International, Inc. (a)(b) 500,000 Limousine Rental 6,937,500 0.7
Chirex, Inc. (a) 100,000 Biotechnology 2,000,000 0.2
Chronimed, Inc. (a) 500,000 Medical Supplies 3,687,500 0.4
Clayton Williams Energy, Inc. (a) 158,300 Exploration and Production 5,055,706 0.5
ESCO Electronics Corporation (a) 164,500 Filtration Products 2,796,500 0.3
Esterline Technologies Corporation (a) 400,000 Aerospace 5,950,000 0.6
Exponent, Inc. 104,700 Research Services 876,862 0.1
GZA GeoEnvironmental Technologies, Inc. (a)(b) 253,600 Environmental Services 1,585,000 0.2
Henry Schein, Inc. (a) 1,400,000 Medical Supplies 24,150,000 2.4
Hotelworks.com, Inc. (a)(b) 843,400 Building Products 316,275 0.0
Invivo Corporation (a)(b) 400,000 Medical Equipment 4,400,000 0.4
Itron, Inc. (a) 457,100 Parts and Component Distribution 3,771,075 0.4
Jason, Inc. (a) 400,000 Auto Parts 3,850,000 0.4
Marcus Corporation 280,000 Leisure 3,395,000 0.3
Material Sciences Corporation (a) 332,900 Metal Processor 3,329,000 0.3
Omnicare, Inc. (a) 200,000 Pharmaceutical Services 1,812,500 0.2
Osmonics, Inc. (a) 588,000 Filtration Products 5,439,000 0.5
Perrigo Company (a) 3,050,000 Pharmaceuticals 19,253,125 1.9
PET sMART Inc. (a) 1,200,000 Pet Supplies 4,050,000 0.4
Pharmaceutical Product Development, Inc. (a) 750,000 Biotechnology Consulting 15,750,000 1.5
Powell Industries, Inc. (a) 507,400 Electrical Equipment 4,947,150 0.5
Reebok International Ltd. (a) 258,800 Athletic Footwear 4,124,625 0.4
Rehabilicare, Inc. (a) 382,000 Medical Equipment 1,074,375 0.1
Republic Services, Inc. (a) 1,000,000 Waste Management 16,000,000 1.6
RightCHOICE Managed Care, Inc. (Class A) (a) 624,100 Managed Healthcare 9,829,575 1.0
RPM, Inc. 200,000 Building Products 2,025,000 0.2
School Specialty, Inc. (a) 700,000 Educational Supplies 12,993,750 1.3
</TABLE>
Value Report | 13
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
VALUE FUND [CONT'D]
<TABLE>
<CAPTION>
Percent of
COMMON STOCKS (cont'd) Shares Industry Value Net Assets
<S> <C> <C> <C> <C>
Low Price/Cash Flow Ratios (cont'd)
SpaceLabs Medical, Inc. (a)(b) 648,700 Medical Equipment $ 7,297,875 0.7%
Sterile Recoveries, Inc. (a) 101,800 Hospital Services 788,950 0.1
Stifel Financial Corporation 223,000 Securities Broker 2,341,500 0.2
Strattec Security Corporation (a)(b) 297,000 Parts and Distribution 9,652,500 0.9
Sunrise Medical, Inc. (a)(b) 1,300,000 Medical Equipment 6,337,500 0.6
The Topps Company, Inc. (a) 100,000 Entertainment Products 1,150,000 0.1
Tucker Anthony Sutro (a) 103,900 Securities Broker 1,870,200 0.2
UniSource Energy Corporation 500,000 Electricity Provider 7,500,000 0.7
Veterinary Centers of America (a) 700,000 Animal Hospitals 9,625,000 0.9
Vicorp Restaurants, Inc. (a) 164,475 Restaurants 3,001,669 0.3
Weyco Group, Inc. 172,000 Footwear 4,386,000 0.4
World Acceptance Corporation 400,000 Consumer Finance 2,100,000 0.1
------------- ----
$ 239,860,540 23.4%
Low Price to Book Values
3DFX Interactive, Inc. (a) 750,000 Software $ 5,835,938 0.6%
Allied Healthcare Products, Inc. (a)(b) 772,500 Medical Equipment 2,607,188 0.3
Almost Family, Inc. (a)(b) 308,900 Nursing Services 685,372 0.1
Asia Pacific Wire & Cable Corporation Ltd. (a)(b) 706,000 Cable Manufacturer 1,676,750 0.2
Benton Oil & Gas Company (a) 1,200,000 Exploration and Production 3,300,000 0.3
Buckhead America Corporation (a)(b) 184,600 Lodging 946,075 0.1
Chofu Seisakusho Company Ltd. (c) 300,000 Heating & Air Conditioning 4,053,212 0.4
Chubu Suisan Company Ltd. (c) 443,000 Food Processor 1,692,754 0.2
Cinar Corporation (Class B) (d) 700,000 Educational Products 4,900,000 0.5
Ciprico, Inc. (a)(b) 400,000 Communications Equipment 3,700,000 0.4
Consolidated Freightways Corporation 607,300 Trucking 2,467,156 0.2
Crown Central Petroleum Corporation (Class B) (a)(b) 900,000 Oil Refiner 8,156,250 0.8
Denkyosha Company (c) 463,000 Retail - Electronics 1,725,493 0.2
Denyo Company Ltd. (c) 227,000 Industrial Equipment 1,557,024 0.2
EDAP TMS S.A. (a)(b) 822,500 Medical Equipment 1,336,563 0.1
Encore Wire Corporation (a) 182,500 Building Products 980,938 0.1
Exabyte Corporation (a) 500,000 Computers and Peripherals 2,250,000 0.2
Fuji Coca-Cola Bottling Company (c) 517,000 Soft Drinks 5,258,288 0.5
Fukuda Denshi Company (c) 500,000 Medical Electronics 10,236,814 1.0
Hallwood Energy Corporation (a)(b) 477,540 Exploration and Production 3,909,859 0.4
Hibiya Engineering Company Ltd. (c) 500,000 Heating & Air Conditioning 2,462,496 0.2
High Plains Corporation (a)(b) 1,500,000 Chemicals 3,750,000 0.4
Horipro, Inc. (c) 720,000 Entertainment 5,359,751 0.5
IEC Electronics Corporation (a) 362,400 Contract Manufacturing 566,250 0.1
Iwerks Entertainment, Inc. (a)(b) 314,285 Entertainment 304,464 0.0
John B. Sanfilippo & Son, Inc. (a)(b) 500,000 Foods and Food Products 1,468,750 0.1
Katsuragawa Electric Company (c) 500,000 Office Equipment 1,556,751 0.2
Kentucky Fried Chicken Japan (c) 500,000 Restaurants 5,278,800 0.5
Kondotec, Inc. (c) 500,000 Building Materials 2,056,798 0.2
Landry's Seafood Restaurants, Inc. 500,000 Restaurants 4,250,000 0.4
Lufkin Industries, Inc. (b) 350,000 Oil Services and Equipment 5,556,250 0.5
Maezawa Kasei Industries Company (c) 360,000 Resin Manufacturer 4,007,925 0.4
Magal Security Systems Ltd. (b) 165,300 Engineering and Construction 501,066 0.1
Martin Industries, Inc. (b) 444,600 Heating & Air Conditioning 639,113 0.1
Matrix Service Company (a)(b) 543,800 Engineering and Construction 2,515,075 0.2
Matsumoto Yushi-Seiyaku Company (c) 419,000 Specialty Chemicals 7,511,086 0.7
Maxicare Health Plans, Inc. (a)(b) 136,900 Health Care Insurance 119,788 0.0
MFRI, Inc. (a)(b) 400,000 Waste Management 1,500,000 0.1
Mining Services International Corporation 334,500 Explosives Manufacturer 627,188 0.1
National Home Health Care Corporation (a)(b) 395,000 Nursing Services 1,678,750 0.2
Navigant Consulting, Inc. (a) 600,000 Business Services 2,550,000 0.2
Network Equipment Tech, Inc. (a) 500,500 Communications Equipment 5,036,281 0.5
Nissui Pharmaceutical Company Ltd. (c) 853,600 Pharmaceuticals 5,565,030 0.5
Nuevo Energy Company (a) 300,000 Exploration and Production 5,662,500 0.6
Numac Energy, Inc. (a)(c) 2,040,000 Exploration and Production 6,890,495 0.7
O.I. Corporation, Inc. (a)(b) 326,500 Electrical Equipment 1,377,422 0.1
Outlook Group Corporation (a)(b) 389,100 Printing & Publishing 2,213,006 0.2
Pointe Financial Corporation 100,000 Banking 900,000 0.1
RainForest Cafe, Inc. (a)(b) 1,410,000 Restaurants 4,185,938 0.4
</TABLE>
14 | Semi-Annual July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
VALUE FUND [CONT'D]
<TABLE>
<CAPTION>
Percent of
COMMON STOCKS (cont'd) Shares Industry Value Net Assets
<S> <C> <C> <C> <C>
Low Price to Book Values (cont'd)
Ramsay Youth Services, Inc. (a)(b) 800,400 Education $ 1,500,750 0.1%
Remington Oil & Gas Corporation (a) 682,900 Exploration and Production 5,121,750 0.5
Roy F. Weston, Inc. (Class A) (a)(b) 737,500 Waste Management 2,258,594 0.2
Salient 3 Communications, Inc. (a)(b) 351,300 Communications Equipment 4,237,556 0.4
Sangetsu Company Ltd. (c) 500,000 Household Furnishings 8,255,496 0.8
Shikoku Coca-Cola Bottling Company Ltd. (c) 400,000 Soft Drinks 4,679,687 0.5
Sholodge, Inc. (a)(b) 530,000 Lodging 1,855,000 0.2
Speizman Industries, Inc. (a)(b) 300,000 Manufacturing Equipment 956,250 0.1
Teikoku Hormone Mfg. Company Ltd. (c) 600,000 Pharmaceuticals 4,698,556 0.5
Tesoro Petroleum Corporation (a) 1,000,000 Domestic 10,125,000 1.0
TETRA Technologies, Inc. (a) 100,000 Oil Services and Equipment 1,418,750 0.1
Toyo Tec Company Ltd. (c) 302,000 Security Services 1,279,347 0.1
Urocor, Inc. (a)(b) 658,700 Urological Services 3,128,825 0.3
Webco Industries, Inc. (a)(b) 500,000 Metals 1,531,250 0.1
Willbros Group, Inc. (a) 419,800 Engineering and Construction 2,886,125 0.3
Yushiro Chemical Industry Company Ltd. (c) 361,000 Metalworking Equipment 1,958,439 0.2
------------------ -----
$ 209,258,022 20.5%
Special Situations
BTG, Inc. (a)(b) 800,000 IT Services $ 6,500,000 0.6%
ELOT, Inc. (a) 3,000,000 Gaming 5,625,000 0.6
Eventures Group, Inc. (a) 50,000 Communications Equipment 775,000 0.1
Flow International Corporation (a) 300,000 Pumps and Valves 3,000,000 0.3
Indus International, Inc. (a) 1,000,000 Enterprise Software 8,562,500 0.8
Innovex, Inc. (a) 400,000 Contract Manufacturing 3,900,000 0.4
InterDigital Communications Corporation (a) 1,200,000 Telecommunications 19,875,000 1.9
K-V Pharmaceutical Company (Class A) (a) 433,500 Pharmaceuticals 11,487,750 1.1
NABI (a)(b) 2,500,000 Pharmaceuticals 18,281,250 1.8
Ontrack Data International (a) 183,000 Data Recovery 1,429,688 0.1
Orthologic Corporation (a)(b) 1,815,000 Medical Equipment 8,961,562 0.9
Richardson Electronics Ltd. 100,000 Parts and Component Distribution 1,606,250 0.2
Riken Vitamin Company Ltd. (c) 500,000 Food Processor 7,595,056 0.7
Spectrian Corporation (a) 400,000 Communications Equipment 6,650,000 0.7
Tech-Sym Corporation (a)(b) 300,600 Electrical Equipment 8,454,375 0.8
United Wisconsin Services, Inc. (a) 62,400 Managed Health Care 339,300 0.0
U.S. Global Investors, Inc. (a)(b) 598,000 Investment Management 1,046,500 0.1
------------------ -----
$ 114,089,231 11.1%
------------------ -----
TOTAL COMMON STOCKS (Cost $894,879,572) $ 1,008,987,797 98.3%
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Par Percent of
SHORT-TERM INVESTMENTS Amount Value Net Assets
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VARIABLE RATE DEMAND NOTES (+) 0.3%
American Family Mutual Insurance Company 6.31% $ 285,000 $ 285,000 0.0%
Firstar Bank N.A. 6.34% 1,995,000 1,995,000 0.2
General Mills, Inc. 6.28% 100,000 100,000 0.0
Sara Lee Corporation 6.27% 435,000 435,000 0.1
Wisconsin Electric Power Company 6.31% 11,000 11,000 0.0
----------------- -----
TOTAL SHORT-TERM INVESTMENTS (Cost $2,826,000) $ 2,826,000 0.3%
TOTAL INVESTMENTS (Cost $897,705,572)........................................ $ 1,011,813,797 98.6%
Cash and receivables, less liabilities....................................... 11,170,556 1.4
----------------- -----
TOTAL NET ASSETS............................................................. $ 1,022,984,353 100.0%
================= =====
</TABLE>
(a) Non-income producing security.
(b) Affiliated company. See Note 9 in Notes to Financial Statements.
(c) Foreign-denominated security.
(d) Valued at fair value using methods determined by the Board of Directors.
(+) Variable rate demand notes are considered short-term obligations and are
payable on demand. Interest rates change periodically on specified dates.
The rates listed are as of June 30, 2000.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
Value Report | 15
<PAGE>
Statements of Assets and Liabilities June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECT VALUE VALUE PLUS VALUE
FUND FUND FUND
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost...................................... $ 6,662,639 $ 76,839,322 $ 897,705,572
=========== ============ ===============
Investments in securities, at value..................................... $ 6,574,081 $ 69,732,370 $ 1,011,813,797
Cash.................................................................... 4,459 18,918 3,512,440
Receivable from securities sold......................................... 67,237 443,917 10,429,773
Receivable from fund shares sold........................................ 60,000 169,017 20,315
Accrued dividends and interest.......................................... 24,978 165,911 1,635,308
Prepaid expenses........................................................ 649 6,445 54,313
Deferred organization expenses.......................................... 4,118 -- --
Receivable from Advisor for expense reimbursement....................... 4,076 -- --
----------- ------------ ---------------
Total Assets......................................................... 6,739,598 70,536,578 1,027,465,946
----------- ------------ ---------------
LIABILITIES:
Payable for securities purchased........................................ 88,981 84,969 1,163,863
Payable for fund shares redeemed........................................ -- 250 2,894,672
Distributions payable................................................... -- 140,449 --
Payable to Advisor for deferred organization expenses................... 4,118 -- --
Accrued expenses........................................................ 6,688 121,643 423,058
----------- ------------ ---------------
Total Liabilities.................................................... 99,787 347,311 4,481,593
----------- ------------ ---------------
TOTAL NET ASSETS.......................................................... 6,639,811 70,189,267 1,022,984,353
=========== ============ ===============
NET ASSETS CONSIST OF:
Paid in capital......................................................... 6,153,091 86,298,971 779,247,831
Accumulated undistributed net investment income (loss).................. 51,539 -- (3,112,808)
Accumulated undistributed net realized gains (losses) on investments.... 523,738 (9,003,577) 132,744,391
Net unrealized appreciation (depreciation) on investments............... (88,557) (7,106,127) 114,104,939
----------- ------------ ---------------
TOTAL NET ASSETS.......................................................... $ 6,639,811 $ 70,189,267 $ 1,022,984,353
=========== ============ ===============
Shares outstanding, $.001 par value (100,000,000; 100,000,000
and 150,000,000 shares authorized, respectively)........................ 540,658 5,123,888 31,065,658
=========== ============ ===============
NET ASSET VALUE, OFFERING PRICE &
REDEMPTION PRICE PER SHARE................................................ $ 12.28 $ 13.70 $ 32.93
=========== ============ ===============
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
Statements.
16| Semi-Annual July 1, 2000
<PAGE>
<TABLE>
<CAPTION>
Statements of Operations For the period from January 1, 2000 to June 30, 2000 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------
SELECT VALUE VALUE PLUS VALUE
FUND FUND FUND
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............................................................. $ 76,956 $ 1,026,054 $ 4,484,980
Interest............................................................... 6,373 356,887 29,902
Foreign tax withholding................................................ -- (22,529) (158,160)
----------- ------------ --------------
Total investment income............................................. 83,329 1,360,412 4,356,722
----------- ------------ --------------
EXPENSES:
Management fees........................................................ 24,467 270,390 4,015,008
Distribution fees...................................................... 8,156 96,568 1,338,336
Transfer agent fees.................................................... 9,194 88,768 599,779
Fund accounting fees................................................... 6,167 8,966 44,513
Custodian fees......................................................... 1,584 22,645 108,159
Printing and communications............................................ 1,961 16,009 104,195
Postage................................................................ 1,176 24,062 130,547
Legal fees............................................................. 2,337 5,846 20,465
Registration fees...................................................... 9,903 9,904 16,088
Directors' fees........................................................ 6,630 7,771 25,344
Audit fees............................................................. 3,759 6,491 18,367
Interest expense....................................................... 268 114,846 621,636
Amortization of deferred organization expenses......................... 1,632 -- --
Other operating expenses............................................... 3,932 16,232 127,521
----------- ------------ --------------
Total expenses......................................................... 81,166 688,498 7,169,958
Less: Expense reimbursement............................................ (42,662) -- --
----------- ------------ --------------
Net expenses........................................................... 38,504 688,498 7,169,958
----------- ------------ --------------
NET INVESTMENT INCOME (LOSS)............................................. 44,825 671,914 (2,813,236)
----------- ------------ --------------
REALIZED & UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains (losses) on:
Long positions........................................................ 535,404 10,885,762 132,732,171
Futures contracts..................................................... -- (108,002) 83,442
Options............................................................... -- -- 464,070
Net increase (decrease) in unrealized appreciation on:
Long positions........................................................ (279,619) (9,523,913) (207,486,013)
Futures contracts..................................................... -- -- 217,349
----------- ------------ --------------
TOTAL REALIZED & UNREALIZED GAINS
(LOSSES) ON INVESTMENTS.................................................. 255,785 1,253,847 (73,988,981)
----------- ------------ --------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS......................................... $ 300,610 $ 1,925,761 (76,802,217)
=========== ============ ==============
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report |17
<PAGE>
Statements of Changes in Net Assets
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECT VALUE FUND VALUE PLUS FUND
------------------------------ ----------------------------
Jan. 1, Jan. 1,
2000 to 2000 to
June 30, 2000 Year Ended June 30, 2000 Year Ended
(Unaudited) Dec. 31, 1999 (Unaudited) Dec. 31, 1999
------------------------------ ----------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income............................................... $ 44,825 $ 103,992 $ 671,914 $ 4,102,433
Net realized gains (losses) on investments.......................... 535,404 208,697 10,777,760 (16,527,103)
Net increase (decrease) in unrealized appreciation on investments... (279,619) (164,645) (9,523,913) 12,418,206
------------- -------------- ------------ -------------
Net increase (decrease) in net assets resulting from operations.. 300,610 148,044 1,925,761 (6,464)
------------- -------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................................... -- (99,399) (902,202) (4,074,600)
Net realized gains on investments................................... -- (138,062) -- --
------------- -------------- ------------ -------------
Net distributions to shareholders................................ -- (237,461) (902,202) (4,074,600)
------------- -------------- ------------ -------------
FUND SHARE ACTIVITY:
Proceeds from shares issued......................................... 1,298,421 11,020,126 5,671,260 100,255,961
Reinvested dividends from net investment income and
distributions from net realized gains on investments............. -- 224,429 701,339 3,393,516
Cost of shares redeemed............................................. (2,077,261) (12,062,437) (24,271,627) (186,817,673)
------------- -------------- ------------ -------------
Net decrease in net assets derived
from Fund share activity....................................... (778,840) (817,882) (17,899,028) (83,168,196)
------------- -------------- ------------ -------------
TOTAL DECREASE IN NET ASSETS.......................................... (478,230) (907,299) (16,875,469) (87,249,260)
NET ASSETS AT THE BEGINNING OF THE PERIOD............................. 7,118,041 8,025,340 87,064,736 174,313,996
------------- -------------- ------------ -------------
NET ASSETS AT THE END OF THE PERIOD................................... $ 6,639,811 $ 7,118,041 $ 70,189,267 $ 87,064,736
============= ============== ============ =============
UNDISTRIBUTED NET INVESTMENT INCOME................................... $ 51,539 $ 6,714 $ -- $ 230,288
============= ============== ============ =============
</TABLE>
<TABLE>
<CAPTION>
VALUE FUND
-------------------------------
Jan. 1, 2000 to
June 30, 2000 Year Ended
(Unaudited) Dec. 31, 1999
-------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss................................................. $ (2,813,236) $ (8,674,692)
Net realized gains on investments................................... 133,279,683 67,726,720
Net increase (decrease) in unrealized appreciation on investments... (207,268,664) 183,771,640
-------------- --------------
Net increase (decrease) in net assets resulting from operations..... (76,802,217) 242,823,668
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains on investments................................... (36,340,729) (3,274,636)
-------------- --------------
Net distributions to shareholders................................ (36,340,729) (3,274,636)
-------------- --------------
FUND SHARE ACTIVITY:
Proceeds from shares issued......................................... 94,735,979 185,666,665
Reinvested dividends from net investment income and distributions
from net realized gains on investments........................... 33,755,919 3,033,426
Cost of shares redeemed............................................. (187,431,215) (778,741,064)
-------------- --------------
Net decrease in net assets derived
from Fund share activity....................................... (58,939,317) (590,040,973)
-------------- --------------
TOTAL DECREASE IN NET ASSETS.......................................... (172,082,263) (350,491,941)
NET ASSETS AT THE BEGINNING OF THE PERIOD............................. 1,195,066,616 1,545,558,557
-------------- --------------
NET ASSETS AT THE END OF THE PERIOD................................... $1,022,984,353 $1,195,066,616
============== ==============
UNDISTRIBUTED NET INVESTMENT LOSS..................................... $ (3,112,808) $ (299,572)
============== ==============
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
Statements.
18| Semi-Annually July 1, 2000
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SELECT VALUE FUND
----------------------------------------------------------------------------------------------------------------------------------
January 1,
2000 to
June 30, 2000 For the period ended December 31,
-------------------------------------
(Unaudited) 1999 1998 1997
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period..................................... $ 11.73 $ 11.94 $ 12.30 $ 10.50
Income (loss) from investment operations:
Net investment income.................................................. 0.08 0.17 0.30 0.11
Net realized and unrealized gains (losses) on investments.............. 0.47 0.04 (0.10) 2.28
---------- -------- --------- ---------
Total income from investment operations.............................. 0.55 0.21 0.20 2.39
Less distributions from:
Net investment income.................................................. 0.00 (0.17) (0.30) (0.11)
Net realized gains on investments...................................... 0.00 (0.25) (0.26) (0.48)
---------- -------- --------- ---------
Total distributions.................................................. 0.00 (0.42) (0.56) (0.59)
---------- -------- --------- ---------
Net asset value, end of period........................................... $ 12.28 $ 11.73 $ 11.94 $ 12.30
========== ======== ========= =========
Total Return............................................................. 4.69%/(2)/ 1.95% 1.73% 22.91%
Ratios and Supplemental Data
Net assets, end of period (in thousands)............................... $ 6,640 $ 7,118 $ 8,025 $ 7,665
Percentage of net expenses to average net assets/(4)/.................. 1.18%/(3)/ 0.74% 0.00% 1.36%
Percentage of net investment income(loss) to average net assets/(4)/... 1.37%/(3)/ 1.38% 2.37% 1.14%
Portfolio turnover rate................................................ 171% 160% 48% 30%
<CAPTION>
Oct. 11, 1996/(1)/
through
Dec. 31, 1996
----------------------------------------------------------------------------------------------
<S> <C>
PER SHARE DATA
Net asset value, beginning of period...................................... $ 10.00
Income (loss) from investment operations:
Net investment income................................................... --
Net realized and unrealized gains (losses) on investments............... 0.50
-----------
Total income from investment operations............................... 0.50
Less distributions from:
Net investment income................................................... --
Net realized gains on investments....................................... --
-----------
Total distributions................................................... --
-----------
Net asset value, end of period............................................ $ 10.50
===========
Total Return.............................................................. 5.00%/(2)/
Ratios and Supplemental Data
Net assets, end of period (in thousands)................................ $ 2,441
Percentage of net expenses to average net assets/(4)/................... 2.73%/(3)/
Percentage of net investment income(loss) to average net assets/(4)..... (0.25)%/(3)/
Portfolio turnover rate................................................. 1%
</TABLE>
/(1)/ Commencement of operations.
/(2)/ Not annualized.
/(3)/ Annualized.
/(4)/ If there had been no expense reimbursement or management fee waiver by the
Advisor, the percentage of net expenses to average net assets for the
periods ended June 30, 2000, December 31, 1999, 1998 and 1997 would have
been 2.49%, 2.58%, 1.92% and 2.00%, respectively, and the percentage of
net investment income (loss) to average net assets would have been 0.07%,
(0.46)%, 0.45% and 0.50%, respectively.
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report |19
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE PLUS FUND
-----------------------------------------------------------------------------------------------------------------------------------
January 1,
2000 to
June 30, 2000 For the period ended December 31,
------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period..................... $ 13.57 $ 13.80 $ 16.13 $ 13.73 $ 11.17 $ 9.53
Income (loss) from investment operations:
Net investment income.................................. 0.13 0.46 0.62 0.48 0.38 0.41
Net realized and unrealized gains (losses)
on investments........................................ 0.17 (0.25) (2.32) 3.66 3.33 1.89
--------- -------- --------- -------- -------- --------
Total income (loss) from investment operations....... 0.30 0.21 (1.70) 4.14 3.71 2.30
Less distributions from:
Net investment income.................................. (0.17) (0.44) (0.60) (0.48) (0.38) (0.41)
Net realized gains on investments...................... -- -- (0.03) (1.26) (0.77) (0.25)
--------- -------- --------- -------- -------- --------
Total distributions.................................. (0.17) (0.44) (0.63) (1.74) (1.15) (0.66)
--------- -------- --------- -------- -------- --------
Net asset value, end of period........................... $ 13.70 $ 13.57 $ 13.80 $ 16.13 $ 13.73 $ 11.17
========= ======== ========= ======== ======== ========
Total Return............................................. 2.12%/(1)/ 1.67% (10.78)% 30.60% 33.80% 24.39%
Ratios and Supplemental Data
Net assets, end of period (in thousands)............... $ 70,189 $ 87,065 $ 174,314 $336,281 $ 66,582 $ 19,123
Percentage of net expenses to average net assets....... 1.78%/(2)/ 1.39% 1.24% 1.12% 1.45% 1.54%
Percentage of net investment income to average
net assets............................................ 1.74%/(2)/ 3.05% 3.77% 3.32% 3.23% 3.90%
Portfolio turnover rate................................ 145% 82% 64% 74% 73% 150%
</TABLE>
/(1)/ Not annualized.
/(2)/ Annualized.
The accompanying Notes to Financial Statements are an integral part of these
Statements.
20| Semi-Annual July 1, 2000
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE FUND
-----------------------------------------------------------------------------------------------------------------------------------
January 1,
2000 to
June 30, 2000 For the period ended December 31,
-----------------------------------------------------
(Unaudited) 1999 1998 1997 1996
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period.................... $ 36.50 $ 29.29 $ 33.87 $ 31.65 $ 27.95
Income (loss) from investment operations:
Net investment income (loss).......................... (0.09) (0.21)/(1)/ 0.08 0.17 0.06
Net realized and unrealized gains (losses)
on investments....................................... (2.30) 7.52 (3.97) 7.09 5.78
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment operations...... (2.39) 7.31 (3.89) 7.26 5.84
Less distributions from:
Net investment income................................. 0.00 -- (0.06) (0.17) (0.06)
Net realized gains on investments..................... (1.18) (0.10) (0.63) (4.87) (2.08)
---------- ---------- ---------- ---------- ----------
Total distributions................................. (1.18) (0.10) (0.69) (5.04) (2.14)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period.......................... $ 32.93 $ 36.50 $ 29.29 $ 33.87 $ 31.65
========== ========== ========== ========== ==========
Total Return............................................ (6.70)%/(2)/ 25.01% (11.46)% 23.19% 20.99%
Ratios and Supplemental Data
Net assets, end of period (in thousands).............. $1,022,984 $1,195,067 $1,545,495 $2,126,715 $1,626,760
Percentage of net expenses to average net assets...... 1.34%/(3)/ 1.34% 1.15% 1.12% 1.23%
Percentage of net investment income (loss) to
average net assets................................... 0.53%/(3)/ (0.70)% 0.22% 0.49% 0.22%
Portfolio turnover rate............................... 59% 23% 36% 55% 31%
<CAPTION>
----------
1995
---------------------------------------------------------------------
<S> <C>
PER SHARE DATA
Net asset value, beginning of period..................... $ 22.72
Income (loss) from investment operations:
Net investment income (loss)........................... 0.13
Net realized and unrealized gains (losses)
on investments........................................ 6.63
----------
Total income (loss) from investment operations....... 6.76
Less distributions from:
Net investment income.................................. (0.13)
Net realized gains on investments...................... (1.40)
----------
Total distributions.................................. (1.53)
----------
Net asset value, end of period........................... $ 27.95
==========
Total Return............................................. 29.80%
Ratios and Supplemental Data
Net assets, end of period (in thousands)............... $1,190,926
Percentage of net expenses to average net assets....... 1.29%
Percentage of net investment income (loss) to
average net assets.................................... 0.61%
Portfolio turnover rate................................ 31%
</TABLE>
/(1)/ Net investment loss per share is calculated using average shares
outstanding.
/(2)/ Not annualized.
/(3)/ Annualized.
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report |21
<PAGE>
[PHOTO]
Thomas J. Conlin, CFA
[PHOTO]
Greg D. Winston, CFA
DEAR SHAREHOLDER
--------------------------------------------------------------------------------
In our last report, we were emerging from one of the worst years for bonds ever.
While the year 2000 has not yet proven to be a bonanza for municipal bonds, it
has certainly shown greater promise.
From January through June, prices on investment-grade bonds rallied, driven by a
supply/demand imbalance in long Treasury bonds. This rally has not yet, however,
carried over into the non-rated and lower-rated municipal bond markets that are
the focus of our municipal investing.
Typically, the 30-year Treasury paves the way for other bonds, and there tends
to be a lag between when Treasuries rally and when lower-rated debt rallies. The
recent Treasury rally created a widening credit spread, which essentially means
that there was a large gap between the yields paid by Treasuries and the yields
paid by lower-rated debt. And this widening credit spread had a major impact on
the performance of our Funds. We believe our performance will rebound, as the
rally extends downward to reach the other sectors of the bond market.
So while our orientation toward high-yield and lower-rated bonds isn't helping
the Funds in the short term, we maintain our conviction about the strength of
this asset class over the full market cycle. These issues generally offer very
attractive yields relative to investment-grade bonds. In fact, as of June 30,
2000, tax-exempt yields, as represented by the Bond Buyer 40 Index, slightly
exceeded the yield of the 30-year taxable Treasury Bond--and that's before the
impact of tax savings is factored in.
We believe this yield advantage will help the bonds we choose for our portfolios
to outperform in a more stable market environment. And should these bonds rally,
we think there is considerable room for price appreciation due to their current
outrageously cheap prices.
The supply glut that plagued the municipal market in 1999 has greatly eased. New
issuance is down by more than 25% for the year so far. The demand side of the
equation is also beginning to turn around. Total municipal bond fund outflows,
which were very heavy, are now stabilizing, and we're even beginning to see some
movement back into municipal funds. The sharp volatility that has afflicted much
of the stock market is yet another factor that could drive investors to consider
attractively priced investment alternatives.
22| Semi-Annual July 1, 2000
<PAGE>
This shift is not yet dramatic, but we're cautiously optimistic that as more
investors get a clear picture of the potential investment value that municipal
bonds offer, the rally in Treasuries will begin to carry over into the municipal
market.
We believe the Federal Reserve is coming close to the end of its tightening
activity, with a slowing of the economy creeping into view. The likely result is
a more positive environment for municipal investing. For investors who may be
considering either returning to high-yield municipals or investing in them for
the first time, we would make these points:
. A great deal of price risk has already been taken out of the market.
. High-yield municipals can pay attractive rates of income, even in
unfavorable markets.
. Municipals offer diversification that can help ease your portfolio's
volatility, particularly during stock market turmoil.
We see many signs that long-depressed municipal bonds may be on the verge of a
rally. At the very least, investors have the opportunity to purchase an
investment that can pay an attractive yield and that offers the opportunity for
future appreciation.
Sincerely,
/s/ Thomas J. Conlin /s/ Greg D. Winston
Thomas J. Conlin, CFA Greg D. Winston, CFA
A Buying Opportunity in Municipal Bonds:
The Ratio Of The Bond Buyer 40 Index vs. The 30-Year Treasury
"12/90" 0.91
"12/91" 0.90
"12/92" 0.86
"12/93" 0.87
"12/94" 0.88
"12/95" 0.93
"12/96" 0.86
"12/97" 0.89
"12/98" 1.01
"12/99" 0.96
"6/00" 1.00
Source: Bloomberg
One of the reasons Heartland finds municipal funds so attractive is their
compelling yields. The chart above shows the ratio of the Bond Buyer 40 Index
paying a yield of 100% on the 30-year Treasury at 6/30/00. In our view, anything
above 90% is extremely attractive and represents a buying opportunity.
Value Report |23
<PAGE>
Heartland Taxable
Short Duration Municipal Fund
[PHOTO]
Thomas J. Conlin, CFA
Portfolio Co-Manager
[PHOTO]
Greg D. Winston, CFA
Portfolio Co-Manager
"The bargains in this sector may be even greater than those in the tax-free
municipal sector, giving us ample opportunity to identify and capitalize on low-
priced securities backed by great projects."
In the first half of the year 2000, the Heartland Taxable Short Duration
Municipal Fund did well, posting a return of 3.36% compared with the 1.74%
return of its benchmark, the Merrill Lynch High Yield, U.S. Corporate, Cash Pay,
BB Rated, 1-3 Year Index. The second quarter was also strong with the Fund
posting a 1.81% second-quarter return, versus the index's -0.85%.
The primary reason why this Fund had such strong year-to-date performance was
the great inefficiency of the market for taxable municipal bonds. Many investors
are unfamiliar with these bonds and their issuers, and have simply steered clear
of the asset class. As a result, the bargains in this sector may be even greater
than those in the tax-free municipal sector, giving us ample opportunity to
identify and capitalize on low-priced securities backed by great projects.
Taxable municipals did not benefit, however, from the rally that buoyed the
Treasury and investment-grade bond markets. This is not surprising, as there
tends to be a lag between the rallies of Treasuries and lower-rated debt. As
such, we are optimistic that the rally will extend to the other areas of the
bond market such as lower- and non-rated debt, where the Fund is focused.
The Treasury rally, however, did create a widening credit spread, (a gap between
the yields paid by Treasuries and the yields paid by lower-rated and non-rated
debt). For the first half of this year, the widening of the spread between
Treasury yields and those of non-rated and lower-rated debt hampered our
performance, and had a greater effect than interest-rate movements or other
factors. That said, over the first quarter, we reined in the Fund's duration
somewhat, in accordance with interest rate trends and held to this stance over
the second quarter.
While the current market affected our short-term performance, it has also
presented us with a broad range of solid issues to purchase at what we believe
are very compelling values. Overall, we have maintained the proportion of the
Fund's net assets allocated to
24| Semi-Annual July 1, 2000
<PAGE>
Taxable Short Duration Municipal Fund
Growth of $10,000 since inception
(inception date 12/29/98)
===========================================================
Merrill Lynch High
Yield, U.S. Corporate, Heartland Customized
Taxable Short Duration Cash Pay, BB Rated Short-Term
Municipal Fund 1-3 Year Index Bond Index
-------------------------------------------------------------------------------
"12/29" 10000.00 10000.00 10000.00
"12/98" 10115.00 10023.00 10000.00
"3/99" 10287.00 10070.00 10157.00
"6/99" 10424.00 10214.00 10340.00
"9/99" 10552.00 10348.00 10528.00
"12/99" 10672.00 10414.00 10665.00
"3/00" 10834.00 10319.00 10682.00
"6/00" 11030.00 10232.00 10869.00
taxable municipals at about 82%. This reflects new flows into the Fund as well
as a greater supply of attractive opportunities. We continue to supplement this
core position with appropriate selections among short-duration, high-yield
corporate and convertible bonds. As with taxable municipals, these bonds are
generally overlooked by Wall Street, allowing us to step in and select bonds
that we think have solid fundamentals at attractive prices.
Looking forward, we don't anticipate making any significant changes to the way
we manage this Fund. We are confident that the Treasury rally will begin to
trickle down to bond sectors that are the focus of the Fund. And should the
tumultuous stock market becomes less attractive, we believe more investors will
be drawn to the compelling values and unique features that this Fund holds.
As of June 30, 2000
-------------------------------------------------------------------------------
June SEC Yield
--------------------------------------------------------------------------------
Taxable Short Duration Municipal Fund..................................... 9.32%
--------------------------------------------------------------------------------
Average Annual Total Returns
<TABLE>
<CAPTION>
One Since Inception
Year (12/29/98)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Heartland Taxable Short Duration Municipal Fund 5.82% 6.74%
-----------------------------------------------------------------------------------------------------------------
Merrill Lynch High Yield, U.S. Corporate, Cash Pay, BB Rated, 1-3 Year Index 0.17 1.53
-----------------------------------------------------------------------------------------------------------------
Heartland Customized Short-Term Bond Index 5.12 5.70
-----------------------------------------------------------------------------------------------------------------
</TABLE>
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
Number of holdings................................................ 63
Net assets........................................................ 31.1 mil.
NAV............................................................... $ 9.64
Average credit quality............................................ BB
Weighted average duration......................................... 2.13 yrs.
Weighted average effective maturity............................... 4.54 yrs.
Credit Quality Distribution/1/ -- % of Portfolio
Rated Not Rated Total
--------------------------------------------------------------------------------
AAA........................................... 1.06% 7.58% 8.64%
AA............................................ 0.00 1.17 1.17
A............................................. 12.89 0.60 13.49
BBB........................................... 8.37 9.21 17.58
BB............................................ 16.90 28.67 45.57
B............................................. 2.49 4.66 7.15
CCC........................................... 5.77 0.63 6.40
----- ----- ------
Total 47.48% 52.52% 100.00%
Top Holdings -- % of Net Assets
<TABLE>
<S> <C>
Health Insurance Plan of Greater NY
11.25% 7/1/10 (Callable 7/1/00)........................................................ 5.78%
Sholodge, Inc. Convertible
7.50% 5/1/04........................................................................... 5.12
Louisiana Health Education Authority
5.625% 1/1/28.......................................................................... 4.71
Lakeland, FL Retirement Community (Carpenter's Home Estates)
11.00% 1/1/05.......................................................................... 4.49
Illinois Health Facility Authority (Bohemian Home-Tabor Hills Health Care)
5.25% 11/15/28 (Callable 11/15/00)..................................................... 4.36
-----
Total 24.46%
</TABLE>
Past performance is no guarantee of future results.
The Fund invests primarily in medium- and lower-quality securities which have
higher yield potential but present greater investment and credit risk than high-
quality securities. These risks may result in greater share price volatility.
Yield shown is annualized for the 30 days ended 6/30/00. Advisor voluntarily
waives a portion of the Fund's expenses, but reserves the right to change the
level of the waiver. Without such waivers, the Fund's yield would of been 8.97%
and total returns would have been lower.
/1/ Rated securities are categorized based on ratings received from various
nationally recognized statistical rating organizations and non-rated securities
are categorized based on the Advisors determination that they are of comparable
credit quality. Securities rated BB or lower are considered non-investment grade
or "junk" bonds and present a greater risk of default.
Portfolio holdings are subject to change without notice.
Value Report | 25
<PAGE>
Heartland Short Duration High-Yield Municipal Fund
[PHOTO]
Thomas J. Conlin, CFA
Portfolio Co-Manager
[PHOTO]
Greg D. Winston, CFA
Portfolio Co-Manager
"We think there are compelling values in the short duration high-yield muni
market--solid issues with attractive yields that are being ignored right now."
For the first half of 2000, the Short Duration High-Yield Municipal Fund
returned -0.15%, compared with a 2.82% return by the Lehman Brothers Non-
Investment Grade 1-3 Year Municipal Bond Index.
The only significant change we made to the Fund's investment stance was to
shorten its duration somewhat toward the end of the first quarter. Our
adjustment of the Fund's interest-rate sensitivity, however, was not the main
factor that drove performance. The dramatic widening of the credit spread in the
market impacted our performance greatly. A widening credit spread is essentially
a gap between the yields paid by Treasuries and the yields paid by lower-rated
debt. Because of the recent Treasury rally and decline in Treasury yields, the
gap widened between the yields paid by Treasury bonds and those paid by lower-
rated and non-rated securities -- including the short duration, high-yield
municipals that are the focus of this Fund.
While the Treasuries rallied in the face of heightened demand (largely the
result of the government's announcement of plans to buy back Treasury debt),
lower-grade debt was generally overlooked. As a result, we think there are
compelling values in the short duration high-yield muni market--solid issues
with attractive yields that are being ignored right now.
The strong economy has prompted the Federal Reserve to continue to raise the Fed
Funds target rate. And while some signs of economic slowing are emerging, our
focus on bonds backed by projects that provide essential services--such as
multi-family housing and health care facilities--should help to cushion against
downside risk.
It is worth noting that while health care is certainly an essential service,
municipal bonds related to this area have encountered a difficult environment
over the past year or so. Bonds in the health care area have not done as well as
bonds in other areas based on concerns about inadequate reimbursements for care
from Medicare and state-based insurers. This situation appears to be turning
around, however, as Medicare reimbursement rates are set to increase later this
year.
26 | Semi-Annual: July 1, 2000
<PAGE>
Short Duration High-Yield Municipal Fund Growth of $10,000 since inception
(inception date 1/2/97)
[CHART]
Short Duration Lehman Municipal
High-Yield 1-3 Yr Non-Investment
Municipal Fund Grade Index
"1/97" 10,000.00 10,000.00
10,138.00 10,160.00
"6/97" 10,349.00 10,341.00
10,554.00 10,560.00
"12/97" 10,744.00 10,709.00
10,832.00 10,854.00
"6/98" 10,995.00 10,998.00
11,038.00 11,140.00
"12/98" 11,136.00 11,290.00
11,302.00 11,434.00
"6/99" 11,322.00 11,523.00
11,406.00 11,623.00
"12/99" 11,294.00 11,703.00
11,195.00 11,869.00
"6/00" 11,277.00 12,034.00
There's also a powerful demographic trend that leads us to be even more
optimistic about the health care sector: the Aging of America, particularly the
Baby Boom generation. Every day, more Americans come closer to needing long-term
care facilities, and it will be in the government's interest to maintain
Medicare payment scales that will allow care providers to operate profitably. We
fully anticipate that this theme will continue to play a meaningful role in the
portfolio.
Overall, bonds in the short duration high-yield municipal market have paid
healthy yields, and offer the potential for price appreciation if more investors
are drawn to this sector of the market. Our heavy concentration in high-yield
municipal bonds hasn't been beneficial to the Fund's short-term performance, but
we are confident that over the course of the entire market cycle, the Fund will
prove to be a solid holding in an investor's portfolio.
<TABLE>
<CAPTION>
As of June 30, 2000
--------------------------------------------------------------------------------
June SEC Yield
--------------------------------------------------------------------------------
<S> <C>
Heartland Short Duration High-Yield Municipal Fund................. 6.29%
--------------------------------------------------------------------------------
Equivalent taxable yield at a 39.6% federal rate................... 10.41%
--------------------------------------------------------------------------------
</TABLE>
Average Annual Total Returns
<TABLE>
<CAPTION>
One Three Since Inception
Year Year (1/2/97)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Heartland Short Duration High-Yield Municipal Fund -0.40% 2.90% 3.50%
---------------------------------------------------------------------------------------------------------
Lehman Municipal 1-3 Year Non-Investment Grade Bond Index 4.43 5.18 5.45
---------------------------------------------------------------------------------------------------------
Lipper High Yield Municipal Debt Funds Index -1.73 3.20 3.70
---------------------------------------------------------------------------------------------------------
</TABLE>
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
<TABLE>
<S> <C>
Number of holdings.............................................. 60
Net assets...................................................... $100.6 mil.
NAV............................................................. $9.27
Average credit quality.......................................... BB
Weighted average duration....................................... 2.77 yrs.
Weighted average effective maturity............................. 7.97 yrs.
YTD % of income subject to AMT.................................. 8.58%
</TABLE>
Credit Quality Distribution/1/ -- % of Portfolio
<TABLE>
<CAPTION>
Rated Not Rated Total
------------------------------------------------------------------------------
<S> <C> <C> <C>
BBB............................................ 4.38% 21.40% 25.78%
BB............................................. 0.00 54.60 54.60
B.............................................. 12.48 4.70 17.18
CCC............................................ 0.93 1.51 2.44
----- ----- ------
Total 17.79% 82.21% 100.00%
</TABLE>
Top Holdings -- % of Net Assets
<TABLE>
<S> <C>
Tarrant County, TX Health Fac. Dev. Corp. (West. Retirement Comm.)
8.25% 8/1/28 (Callable 8/1/02)............................................. 6.25%
Allegheny County, PA Industrial Dev. Auth. (Lanchester Energy Partners)
6.8% 1/1/05................................................................ 6.11
Jefferson County, TX Health Fac. Dev. Corp. (Baptist Healthcare System)
8.875% 6/1/21 (Callable 6/1/00)............................................ 5.29
Tulsa County, OK Industrial Auth. (Tulsa-Amer. Hsg. Fdtn. Apts.)
8.25% 3/1/20 (Callable 3/1/02)............................................. 5.23
CT State Dev. Authority (Alzheimers Res. Center)
7.125% 8/15/14 (Callable 8/15/04).......................................... 4.59
-----
Total 27.47%
</TABLE>
Past performance is no guarantee of future results.
The Fund invests primarily in medium- and lower-quality securities, which have
higher yield potential, but present greater investment, credit, and liquidity
risk and may be subject to greater share price and yield volatility than higher-
quality securities. From time-to-time, the Fund may hold securities that are
in default or other securities with respect to which the payment of interest and
principal is delayed or may not be made.
Yield shown is annualized for the 30 days ended 6/30/00. Advisor voluntarily
waives a portion of the Fund's expenses, but reserves the right to change the
level of the waiver. Without such waivers, the Fund's yield would have been
6.09%, and the 39.6% equivalent yield would have been 10.8% and total returns
would have been lower.
/1/ Rated securities are categorized based on ratings received from various
nationally recognized statistical rating organizations and not rated securities
are categorized based on the Advisors determination that they are of comparable
credit quality. Securities rated BB or lower are considered non-investment grade
or "junk" bonds and present a greater risk of default.
Portfolio holdings are subject to change without notice.
Value Report | 27
<PAGE>
Heartland High-Yield
Municipal Bond Fund
[PHOTO OF THOMAS J. CONLIN, CFA]
Portfolio Co- Manager
[PHOTO OF GREG D. WINSTON, CFA]
Portfolio Co-Manager
"Reductions in Medicare reimbursements were one factor driving health-care
related bonds down, and those concerns are beginning to ease.
Reimbursement rates are set for increases in July and October."
For the first half of the year 2000, the High-Yield Municipal Bond Fund returned
-0.62%, compared with the Lehman Brothers Municipal Non-Investment Grade Bond
Index's return of 2.29%.
Treasury bonds, and to a lesser degree, other investment-grade issues, enjoyed a
significant rally so far this year. This was certainly a welcome change from
1999, but so far it has had little impact on high-yield municipals. Typically,
the 30-year Treasury paves the way for other bond sectors, and there tends to be
a lag between the rallies of Treasuries and those of lower-rated or non-rated
debt. While we anticipate the bond rally will benefit high-yield municipal bonds
in the future, it was the widening credit spread created by the recent Treasury
rally that proved to be the greatest driver of the Fund's performance over the
six-month period. A widening credit spread is essentially a gap between the
yields paid by Treasuries and those paid by lower-quality issues. While this
factor is dampening our performance in the short-term, we believe the credit
spread will become less of an issue as the rally extends out to other areas of
the bond market.
We are continuing our focus on bonds backed by projects that supply essential
services, as these projects are in the best position to withstand a variety of
economic conditions. Another theme we emphasize in the portfolio remains the
aging of America. Although the health-care related bonds that are part of this
theme have not performed as well as other bonds over the past year, we are
inclined to believe that these bonds are poised for improvement.
Reductions in Medicare reimbursements were one factor driving health-care
related bonds down, and those concerns are beginning to ease. Reimbursement
rates are set for increases in July and October. Demographics--in the form of
the vast, aging Baby Boomer generation--are in favor of this sector. Simply put,
we feel demand for long-term health care providers is going to increase. It is
certainly in the government's long-term interest to maintain the reasonable
reimbursement levels necessary to keep care providers in business. In the end,
more rational reimbursements should allow carefully researched bonds from solid
issuers to recover lost ground.
28 | Semi-Annual: July 1, 2000
<PAGE>
High-Yield Municipal Bond Fund
Growth of $10,000 since inception
(inception date 1/2/97)
[CHART]
High Yield Lehman Municipal
Municipal Non-Investment
Bond Fund Grade Index
"1/97" 10000.00 10000.00
10167.00 10083.00
"6/97" 10482.00 10373.00
10778.00 10737.00
"12/97" 11167.00 11094.00
11304.00 11335.00
"6/98 11564.00 11568.00
11774.00 11735.00
"12/98" 11911.00 11783.00
12125.00 11950.00
"6/99" 12055.00 11933.00
12019.00 11890.00
"12/99" 11619.00 11571.00
11589.00 11734.00
"6/00" 11547.00 11836.00
The Fund has a high concentration of high-yield municipal debt, and this focus
on high-yield municipals hasn't been beneficial to the Fund's short-term
performance. However, we have a strong sense of conviction about what we think
are fundamentally sound, attractively priced issues that exist in the high-yield
municipal market. Over the long term, the significant yield advantage that high-
yield municipals generally offer helps to support the Fund's total return, even
in difficult periods such as the one we have been facing. And should the market
come to recognize the value in this sector, there is an opportunity for
considerable price appreciation. In essence, as we anticipate the recent
Treasury rally extending to the areas of the bond market that comprise the focus
of this Fund, we remain optimistic for the remainder of the year ahead.
As of June 30, 2000
================================================================================
June SEC Yield
--------------------------------------------------------------------------------
High-Yield Municipal Bond Fund............................... 6.49%
--------------------------------------------------------------------------------
Equivalent taxable yield at a 39.6% federal rate............. 10.75%
--------------------------------------------------------------------------------
Average Annual Total Returns
One Three Since Inception
Year Year (1/2/97)
--------------------------------------------------------------------------------
Heartland High-Yield Municipal Bond Fund -4.21% 3.28% 4.21%
--------------------------------------------------------------------------------
Lehman Municipal Non-Investment Grade Bond
Index -0.81 4.51 4.95
--------------------------------------------------------------------------------
Lipper High Yield Municipal Debt Funds Index -1.73 3.20 3.70
--------------------------------------------------------------------------------
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
Number of holdings .......................................... 54
Net assets................................................... $70.8 mil.
NAV.......................................................... $ 9.15
Average credit quality....................................... BB
Weighted average duration.................................... 7.85 yrs.
Weighted average effective maturity.......................... 20.18 yrs.
YTD % of income subject to AMT............................... 7.81%
Credit Quality Distribution/1/ -- % of Portfolio
Rated Not Rated Total
---------------------------------------------------------
BBB....................... 0.00% 8.15% 8.15%
BB........................ 0.00 58.10 58.10
B......................... 2.15 22.73 24.88
CCC....................... 1.11 7.76 8.87
---- ----- ------
Total 3.26% 96.74% 100.00%
Top Holdings -- % of Net Assets
Worth, IL Nursing Home (Belhaven Convalescent Center)
7.25% 12/15/27 (Callable 12/15/02)................................ 4.82%
Tarrant County, TX Health Fac. Dev. Corp. (West. RetirementComm.)
8.00% 8/1/25 (Callable 8/1/02).................................... 4.71
Tulsa County, OK Industrial Authority (Tulsa-Amer. Hsg. Fdtn.Apts.)
7.25% 3/1/29 (Callable 3/1/02).................................... 4.33
Tulsa County, OK Industrial Authority (1st Mtg. Multifam. Hous.)
7.5% 12/1/27 (Callable 12/1/05).................................. 3.80
Sumter County, FL Industrial Dev. Authority (Wecare Nursing Center)
6.75% 4/1/29 (Callable 4/1/09)................................... 3.76
-----
Total 21.42%
Past performance is no guarantee of future results.
The Fund invests primarily in medium- and lower-quality securities, which have
higher yield potential, but present greater investment, credit, and liquidity
risk and may be subject to greater share price and yield volatility than higher-
quality securities. From time-to-time, the Fund may hold securities that are in
default or other securities with respect to which the payment of interest and
principal is delayed or may not be made.
Yield shown is annualized for the 30 days ended 6/30/00. Advisor voluntarily
waives a portion of the Fund's expenses, but reserves the right to change the
level of waiver. Without such waivers, the fund's yield would have been 6.27%
and the 39.6% equivalent yield would have been 10.38% and total returns would
have been lower.
/1/ Rated securities are categorized based on ratings received from various
nationally recognized statistical rating organizations and not rated securities
are categorized based on the Advisors determination that they are of comparable
credit quality. Securities rated BB or lower are considered non-investment
grade or "junk" bonds and present a greater risk of default.
Portfolio holdings are subject to change without notice.
================================================================================
Value Report | 29
<PAGE>
[LOGO]
Heartland Wisconsin Tax Free Fund
[PHOTO OF Thomas J. Conlin, CFA]
Portfolio Co-Manager
[PHOTO OF Greg D. Winston, CFA]
Portfolio Co-Manager
"We continue to believe that this portfolio represents outstanding value with
attractive price appreciation potential. And it's worth remembering the power
that this Fund's double-tax-free status offers to investors."
For the first half of the year 2000, the Heartland Wisconsin Tax Free Fund has
posted a return of 2.83%, relative to 6.03% for the Lehman 20-Year Municipal
Bond Index. The Fund's performance took a significant upturn in May and
especially June, after generally lagging in the beginning of the period.
The rally that boosted the Treasury markets in the first half of 2000 had less
impact on other bond sectors, including municipals. While investment-grade
municipal issues did benefit, that effect did not impact the non-rated issues
that make up more than half of this Fund's portfolio. This is not unusual, as
non-rated issues usually trail in bond rallies--and for that matter, so do
municipals. We are, therefore, optimistic for our future performance, as we
anticipate the rally extending downward to reach the other sectors of the bond
market where this Fund is focused.
In this environment, we have not significantly altered our approach to running
the portfolio. We have scaled the Fund's duration back to a more neutral stance,
but the portfolio's interest-rate sensitivity has not been the major factor
driving its returns. Rather, the widening credit spread created by the Treasury
rally had the biggest impact on our results. A widening credit spread is
essentially a gap between the yields paid by Treasuries and the yields paid by
lower-rated and non-rated debt. We expect this credit spread to narrow and
become less of an issue as the bond rally extends to the lower-rated bonds.
While our heavy component of non-rated issues is not boosting performance in the
short-term, we intend to continue focusing on these bonds. From a long-term
perspective, we believe these bonds offer very attractive yields with bargain-
level valuations. In addition, because we are the largest Wisconsin tax-free
fund, we often get the first look at new issues coming to market. This gives us
the opportunity to sort through new issuance to select those that have the best
fundamentals, and take a pass on those that don't measure up.
30| Semi-Annual July 1, 2000
<PAGE>
Wisconsin Tax Free Fund
Growth of $10,000 since inception
(inception date 4/3/92)
<TABLE>
<CAPTION>
Wisconsin Lehman 20 Year
Tax Free Fund Municipal Bond Index
<S> <C> <C>
"4/92" 10000.00 10000.00
10546.00 10901.00
"12/93" 11686.00 12468.00
10927.00 11553.00
"12/95" 12868.00 13971.00
13559.00 14591.00
"12/97" 14436.00 16175.00
15217.00 17279.00
"12/99" 14720.00 16468.00
"6/00" 15136.00 17463.00
</TABLE>
Newly issued Wisconsin bonds have been sparse in recent months, thus we have
been turning to debt from the Virgin Islands, Puerto Rico, and Guam to help fill
out the portfolio. This is not a strategic move away from Wisconsin debt; it
simply reflects the current supply situation.
We continue to believe that this portfolio represents outstanding value with
attractive price appreciation potential. And it's worth remembering the power
that this Fund's double-tax-free status offers to investors. The impact of this
benefit is, of course, magnified for investors in higher tax brackets. But with
the current low valuations across the municipal market, an even greater
percentage of investors may find the tax-free income this Fund offers to be a
compelling bargain.
As of June 30, 2000
--------------------------------------------------------------------------------
June SEC Yield/1/
--------------------------------------------------------------------------------
Heartland Wisconsin Tax Free Fund........................................ 5.36%
--------------------------------------------------------------------------------
Equivalent taxable yield at a 39.6% federal rate/2/...................... 9.82%
--------------------------------------------------------------------------------
Average Annual Total Returns
One Three Five Since Inception
Year Year Year (4/3/92)
--------------------------------------------------------------------------------
Wisconsin Tax Free Fund -0.65% 3.10% 4.80% 5.16%
--------------------------------------------------------------------------------
Lehman 20-Year Municipal Bond Index 2.22 4.93 6.32 7.00
--------------------------------------------------------------------------------
Returns include reinvestment of dividends and capital gains distributions.
Portfolio Highlights and Statistics
Number of holdings................................................. 167
Net assets......................................................... $126.7 mil.
NAV................................................................ $ 9.65
Average credit quality............................................. A
Weighted average duration.......................................... 7.07 yrs.
Weighted average effective maturity................................ 14.27 yrs.
YTD % of income subject to AMT..................................... 21.76%
Credit Quality Distribution3 -- % of Portfolio
Rated Not Rated Total
--------------------------------------------------------------------------------
AAA........................................... 25.99% 3.69% 29.68%
AA............................................ 0.00 5.29 5.29
A............................................. 8.92 7.96 16.88
BBB........................................... 11.80 30.46 42.26
BB............................................ 0.00 3.51 3.51
B............................................. 0.00 2.38 2.38
----- ----- ------
Total 46.71% 53.29% 100.00%
Top Holdings -- % of Net Assets
Mil., WI Redevelopment Auth. - WI Ave.
5.5% 9/1/12........................................................ 8.73%
Virgin Islands Public Finance Auth.
5.40% 10/1/12...................................................... 3.76
Guam Power Auth.
5.125% 10/1/29..................................................... 3.63
Mil., WI Redevelopment Auth.
5.5% 1/1/17........................................................ 2.53
Virgin Islands Public Finance Auth.
5.50% 10/1/13...................................................... 2.44
-----
Total 21.09%
Past performance is no guarantee of future results.
/1/ SEC annualized yield for the 30 days ended 6/30/00.
/2/ Based on the Wisconsin tax rate and the maximum effective federal rate,
adjusted to reflect the deductibility of state taxes.
/3/ Rated securities are categorized based on ratings received from various
nationally recognized statistical rating organizations and not rated
securities are categorized based on the Advisors determination that they are
of comparable credit quality. Securities rated BB or lower are considered
non-investment grade or "junk" bonds and present a Value Report greater risk
31 of default.
Portfolio holdings are subject to change without notice.
================================================================================
Value Report |31
<PAGE>
FIXED INCOME FUNDS
Financial Statements
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
TAXABLE SHORT DURATION MUNICIPAL FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Long-Term Investments - 86.53% Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAXABLE MUNICIPAL BONDS - 76.67%
ALABAMA - 1.04%
$ 150,000 Mobile Alabama Industrial Development Board
Mobile Energy Services (Callable 01/01/2005) (d)................... 6.950% 01/01/2020 $ 66,000
280,000 Russellville, Alabama Industrial Development Board -
Spiral Industry, Incorporated...................................... 10.000 02/01/2006 256,900
------------
322,900
ARIZONA - 3.27%
1,035,000 Maricopa County Arizona Individual Development Authority
Arizona Charter Schools............................................ 9.000 07/01/2008 1,016,888
CALIFORNIA - 6.11%
250,000 Desert Hot Springs, California Public Finance Authority -
Heritage Hospital (Callable 08/01/2002)............................ 10.000 08/01/2017 200,000
400,000 Long Beach California Individual Development
California State University Foundation............................. 6.750 02/01/2010 359,000
595,000 San Jose, California Multifamily Housing -
Helzer Courts...................................................... 7.125 12/01/2004 572,688
800,000 San Mateo, California Redevelopment Agency -
(Callable 08/01/2000) (b).......................................... 7.125 08/01/2008 769,000
------------
1,900,688
CONNECTICUT - 0.11%
35,000 Connecticut Health & Education Facilities Authority -
New Opportunities for Waterbury.................................... 9.500 07/01/2003 33,688
FLORIDA - 7.92%
600,000 Florida Housing Finance Corporation -
Spring Harbor Apartments........................................... 7.000 08/01/2009 570,750
1,465,000 Lakeland, Florida Retirement Community -
Carpenter's Home Estates........................................... 11.000 01/01/2005 1,399,075
60,000 Mexico Beach, Florida Public Service Facilities -
Heritage House of Seminole (Callable 12/01/2003)................... 9.400 12/01/2006 48,000
470,000 Sumter County, Florida Industrial Development Authority -
Wecare Nursing Center.............................................. 10.000 04/01/2004 447,088
------------
2,464,913
GEORGIA - 2.45%
600,000 Conyers, Georgia Housing Authority -
RHA Housing Project................................................ 8.100 10/01/2039 582,750
180,000 Dekalb, Georgia Residential Care Facilities -
King's Bridge Retirement Corporation............................... 10.000 07/01/2001 180,459
------------
763,209
ILLINOIS - 7.17%
920,000 Granite City Illinois Hospital Facility
Saint Elizabeth Medical Center (Callable 07/01/2000)............... 8.125 06/01/2008 877,450
1,500,000 Illinois Health Facilities Authority
Bohemian Home - Tabor Hills Health Care (Callable 11/15/2003)...... 5.250 11/15/2028 1,355,625
------------
2,233,075
</TABLE>
32| Semi-Annual July 1, 2000
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments June 30, 2000 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
TAXABLE SHORT DURATION MUNICIPAL FUND [CONT'D]
------------------------------------------------------------------------------------------------------------------------------------
Par Amount Long-Term Investments - 86.53% (cont'd) Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAXABLE MUNICIPAL BONDS - 76.67% (cont'd)
INDIANA - 2.95%
$ 2,810,000 Michigan City, Indiana Economic Development Revenue -
Building Materials Manufacturing Corporation........... 0.000% 02/01/2011 $ 916,763
KANSAS - 0.96%
330,000 Wyandotte, Kansas Unified Government Multifamily -
Brookstone Apartments (Callable 05/01/2008)............ 8.000 11/01/2009 298,238
LOUISIANA - 4.71%
1,575,000 Louisiana Health Education Authority
Lambeth House (Callable 01/01/2007).................... 5.625 01/01/2028 1,464,750
MASSACHUSETTS - 2.45%
560,000 Massachusetts Industrial Finance Agency -
SEMASS Project (Callable 07/01/2001)...................11.250 07/01/2003 564,900
210,000 Massachusetts Development Finance Agency -
Eastern Nazarene College............................... 8.000 04/01/2011 196,875
-----------
761,775
MINNESOTA - 3.23%
300,000 Eden Prairie Minnesota Multifamily Housing
Lincoln Parc Project (c)............................... 9.250 07/20/2005 304,875
250,000 Minneapolis, Minnesota Revenue -
Benchmark Healthcare of Minneapolis.................... 9.000 12/01/2006 231,563
480,000 Minneapolis, Minnesota Multifamily Housing -
Grant Street Commons Apartments (Callable
11/01/2009)............................................ 9.500 05/01/2011 469,200
-----------
1,005,638
MISSISSIPPI - 3.85%
1,300,000 Mississippi Development Bank Special Obligation
Diamond Lakes Utilities and Imports District
(Callable 12/01/2007).................................. 9.100 12/01/2017 1,197,625
NEVADA - 1.27%
400,000 Director of the State of Nevada Department of
Business & Industry IDR
Wheeling-Pittsburgh Steel Corporation..................10.500 09/01/2002 394,000
NEW JERSEY - 1.73%
440,000 New Jersey Economic Development Authority -
Sayreville Senior Living Centre........................ 9.250 04/01/2003 422,400
120,000 New Jersey Economic Development Authority -
Kapkowski Road Landfill Reclamation.................... 9.500 04/01/2004 116,100
-----------
538,500
NEW YORK - 8.81%
2,000,000 Health Insurance Plan of Greater New York -
(Callable 07/01/2000)..................................11.250 07/01/2010 1,800,000
60,000 Monroe County, New York Industrial Development
Agency -
DePaul Community Facility, Incorporated................ 8.500 08/01/2002 57,675
190,000 Monroe County, New York Industrial Development
Agency -
DePaul Community Facility, Incorporated................ 9.000 02/01/2003 184,538
180,000 Monroe County, New York Industrial Development
Agency -
DePaul Properties...................................... 9.750 09/01/2003 176,175
40,000 Monroe County, New York Industrial Development
Agency -
Empire Sports Centre................................... 9.500 03/01/2005 40,600
220,000 New York City Industrial Development Agency -
A Very Special Place, Incorporated..................... 9.250 01/01/2004 212,025
180,000 Riverhead, New York Multifamily Housing Corporation -
Doctors Path Apartments................................ 8.500 08/01/2002 173,250
100,000 Suffolk County, New York Industrial Development
Agency -
Spellman High Voltage Electronics Corporation.......... 9.000 12/01/2002 97,625
-----------
2,741,888
NORTH CAROLINA - 0.48%
175,000 Fletcher, North Carolina First Mortgage Housing
Revenue -
Avery's View Retirement Facilities (a)................. 9.500 03/01/2008 148,750
</TABLE>
Value Report | 33
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments June 30, 2000 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
TAXABLE SHORT DURATION MUNICIPAL FUND [CONT'D]
------------------------------------------------------------------------------------------------------------------------------------
Par Amount Long-Term Investments - 86.53% (cont'd) Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAXABLE MUNICIPAL BONDS - 76.67% (cont'd)
OHIO - 0.41%
$ 131,200 Kent Ohio Multifamily Housing
Silver Meadows Apartments............................ 7.125% 06/01/2003 $ 128,904
OKLAHOMA - 0.67%
205,000 Oklahoma Housing Finance Agency
Single Family Mortgage (Callable 09/01/2004)......... 8.700 09/01/2013 208,844
PENNSYLVANIA - 4.43%
365,000 Cumberland County, Pennsylvania Industrial
Development
Authority - The Woods at Cedar Run................... 8.500 11/01/2002 352,681
1,000,000 Doylestown Pennsylvania Hospital Authority
Pine Run Retirement Community........................ 8.375 07/01/2008 958,750
70,000 Philadelphia, Pennsylvania Hospitals & Higher
Education
Facilities - North Philadelphia Health System........ 10.000 07/01/2003 67,550
-----------
1,378,981
TEXAS - 11.15%
1,000,000 Decatur Texas Hospital Authority
Decatur Community Hospital........................... 7.750 09/01/2009 933,750
985,000 Jefferson County Texas Health Facilities
Development
Baptist Healthcare System (Callable 07/01/2000)...... 8.875 06/01/2021 986,576
1,290,000 Reeves County, Texas Certificates of
Participation -
Law Enforcement Center (Callable 06/01/2006) (b)..... 7.250 06/01/2011 1,212,600
25,000 Tarrant County, Texas Health Facilities
Development Corporation -
Westchester Retirement Communities (Callable
08/01/2002).......................................... 8.750 08/01/2003 23,875
195,000 Tarrant County, Texas Health Facilities
Development Corporation -
St. Joseph Long Term Care Facility (Callable
05/01/2000) (d)...................................... 10.000 05/01/2004 146,250
25,000 Tarrant County, Texas Health Facilities
Development Corporation -
Westchester Retirement Communities (Callable
08/01/2002).......................................... 9.000 08/01/2004 23,688
120,000 Tarrant County, Texas Health Facilities
Development Corporation -
Heritage Valley Gardens (Callable 03/01/2004)........ 10.250 03/01/2012 96,000
60,000 Tarrant County, Texas Health Facilities
Development Corporation -
Heritage Eastwood Gardens (Callable 12/01/2003)...... 10.000 12/01/2013 48,000
-----------
3,470,739
UTAH - 0.24%
80,000 Davis County, Utah Housing Authority -
Country Crossing..................................... 10.000 02/01/2006 75,600
VIRGINIA - 0.69%
170,000 Alleghany-Highlands Economic Development Authority..... 10.500 09/15/2004 168,088
50,000 Brunswick County, Virginia Industrial Development
Authority -
Extraction Technologies of Virginia (Callable
07/01/2000).......................................... 10.000 07/01/2005 47,250
-----------
215,338
WISCONSIN - 0.57%
185,000 Wisconsin Health & Education Facilities Authority -
Benchmark Healthcare of Wisconsin.................... 8.250 12/01/2003 176,906
-----------
TOTAL TAXABLE MUNICIPAL BONDS (Cost $24,270,228)....... 23,858,600
CORPORATE BONDS - 4.74%
255,000 Carillon, Incorporated................................. 9.250 07/01/2002 250,538
530,000 RHA Assisted Living of Buckhead, Incorporated.......... 10.875 07/01/2009 508,800
717,000 Stone Container Corporation (Callable 01/01/2000)...... 10.750 04/01/2002 715,208
-----------
TOTAL CORPORATE BONDS (Cost $1,502,505)................ 1,474,546
CONVERTIBLE BOND - 5.12%
2,611,000 Sholodge, Incorporated................................. 7.500 05/01/2004 1,592,710
-----------
TOTAL CONVERTIBLE BOND (Cost $1,703,008)............... 1,592,710
-----------
TOTAL LONG-TERM INVESTMENTS (Cost $27,475,741)......... $26,925,856
</TABLE>
34 | Semi Annual: July 1, 2000
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments June 30, 2000 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
TAXABLE SHORT DURATION MUNICIPAL FUND (CONT'D)
------------------------------------------------------------------------------------------------------------------------------------
PAR
AMOUNT SHORT-TERM INVESTMENTS - 12.98% COUPON MATURITY VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAXABLE MUNICIPAL BONDS - 5.90%
MARYLAND - 0.72%
$ 225,000 Maryland Economic Development Corporation -
Collegiate Housing Foundation - Salisbury Project... 8.750% 06/01/2001 $ 223,202
MASSACHUSETTS - 0.19%
60,000 Massachusetts Development Finance Agency -
MCHSP Human Service Providers....................... 9.750 07/01/2000 60,000
NEW YORK - 0.67%
210,000 Westchester County, New York Industrial
Development Agency -
The Children's Village.............................. 9.000 03/15/2001 208,643
VIRGINIA - 0.31%
95,000 Greensville County, Virginia Industrial
Development Authority -
Wheeling-Pittsburgh Steel Corporation............... 9.500 04/01/2001 94,801
VIRGIN ISLANDS - 4.01%
1,250,000 Virgin Islands Public Finance Authority
Virgin Islands Matching Fund Loan................... 6.830 10/01/2000 1,247,196
-------------
TOTAL TAXABLE MUNICIPAL BONDS (Cost $1,835,799)....... 1,833,842
-------------
VARIABLE RATE DEMAND NOTE - 7.08%
2,203,000 Firstar Bank.......................................... 2,203,000
-------------
TOTAL VARIABLE RATE DEMAND NOTE (Cost $2,203,000)..... 2,203,000
-------------
TOTAL SHORT-TERM INVESTMENTS (Cost $4,038,799)........ 4,036,842
-------------
TOTAL INVESTMENTS (Cost $31,514,540).................. 99.47% $ 30,962,698
Cash and receivables, less liabilities................ 0.53 164,300
------ -------------
TOTAL NET ASSETS...................................... 100.00% $ 31,126,998
=============
</TABLE>
(a) Coupon payment periodically increases over the life of the security. Rate
stated is in effect on June 30, 2000.
(b) All or a portion of security committed to cover margin requirements for
futures contracts or when-issued securities.
(c) When-issued security.
(d) Defaulted security.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
Value Report | 35
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments June 30, 2000 (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
HEARTLAND SHORT DURATION HIGH-YIELD MUNICIPAL FUND
------------------------------------------------------------------------------------------------------------------------------------
Par Amount Long-Term Investments - 106.85% Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 106.85%
ALABAMA - 2.74%
$ 3,000,000 West Jefferson, Alabama Amusement & Public Park
Authority -
Visionland Alabama (Callable 02/01/2004)............. 8.000% 02/01/2021 $ 2,760,000
CONNECTICUT - 5.86%
1,255,000 Connecticut State Development Authority -
Alzheimer's Resource Center.......................... 6.875 08/15/2004 1,272,256
4,555,000 Connecticut State Development Authority -
Alzheimer's Resource Center (Callable 08/15/2004).... 7.125 08/15/2014 4,623,325
-------------
5,895,581
FLORIDA - 10.32%
1,260,000 Lee County, Florida Industrial Development
Authority -
Cypress Cove at Healthpark, Florida, Inc. Project
(Callable 10/01/2002)................................ 5.625 10/01/2026 1,236,375
890,000 Lee County, Florida Industrial Development
Authority -
Cypress Cove at Healthpark, Florida, Inc. Project.... 5.600 10/01/2004 858,850
385,000 Lee County, Florida Industrial Development
Authority -
Cypress Cove at Healthpark, Florida, Inc. Project.... 5.700 10/01/2005 368,638
(a)
1,645,000 Seminole County, Florida Industrial Development
Authority -
RHA/Fern Park MR, Incorporated (Callable
07/01/2000).......................................... 9.250 04/01/2012 1,649,113
2,980,000 Sumter County, Florida Industrial Development
Authority -
Wecare Nursing Center (Callable 04/01/2004).......... 8.000 04/01/2014 3,095,475
1,225,000 Tarpon Springs, Florida Health Facilities
Authority -
Helen Ellis Memorial Hospital (Callable
05/01/2001).......................................... 7.500 05/01/2011 1,202,031
2,000,000 Tarpon Springs, Florida Health Facilities
Authority -
Helen Ellis Memorial Hospital (Callable
05/01/2001).......................................... 7.625 05/01/2021 1,975,000
-------------
10,385,482
GEORGIA - 4.11%
1,200,000 Clayton County, Georgia Development Authority IDR -
Outboard Marine Corporation.......................... 6.000 10/01/2002 1,183,500
3,220,000 Houston County, Georgia Development Authority -
Emerald Coast Housing (Callable 08/01/2008).......... 6.850 08/01/2018 2,954,350
-------------
4,137,850
ILLINOIS - 5.54%
3,505,000 Granite City, Illinois Hospital Facilities
Revenue -
St. Elizabeth Medical Center
(Callable 07/01/2001)................................ 8.125 06/01/2008 3,342,894
2,430,000 Worth, Illinois Nursing Home Revenue -
Belhaven Convalescent Center
(Callable 12/15/2002)................................ 6.200 12/15/2007 2,235,600
-------------
5,578,494
IOWA - 6.17%
4,000,000 Cedar Rapids, Iowa First Mortgage Revenue -
Cottage Grove Place (Callable 07/01/2005)............ 5.625 07/01/2028 4,000,000
110,000 Elk Horn, Iowa Health Care Facility -
Salem Lutheran Homes (Callable 04/01/2003)........... 7.250 04/01/2018 106,700
1,335,000 Iowa Finance Authority Health Care Facilities -
Care Initiatives..................................... 5.500 07/01/2008 1,233,206
900,000 Ottumwa, Iowa Revenue -
Penn Place - Regional Retirement Living
(Callable 02/15/2003)................................ 5.150 02/15/2028 866,250
-------------
6,206,156
LOUISIANA - 2.13%
2,300,000 Louisiana Health Education Authority -
Lambeth House (Callable 01/01/2007).................. 5.625 01/01/2028 2,139,000
MASSACHUSETTS - 3.67%
945,000 Massachusetts Industrial Finance Agency -
Glenmeadow Retirement Community (Callable
02/15/2003).......................................... 5.000 02/15/2026 920,194
970,000 Massachusetts Industrial Finance Agency -
Glenmeadow Retirement Community
(Callable 02/15/2006)................................ 5.250 02/15/2026 919,075
2,000,000 Massachusetts Development Finance Agency -
Loomis Communities (Callable 07/01/2005)............. 5.000 07/01/2025 1,857,500
-------------
3,696,769
</TABLE>
36 | Semi Annual: July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND SHORT DURATION HIGH-YIELD MUNICIPAL FUND [CONT'D]
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Long-Term Investments - 106.85% (cont'd) Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 106.85% (cont'd)
MINNESOTA - 2.53%
$ 805,000 Maplewood, Minnesota Health Care Facility -
Healtheast Care System (Callable 11/15/2001)....................... 5.800% 11/15/2003 $ 774,813
1,850,000 South St. Paul, Minnesota Housing and Redevelopment Authority -
Healtheast Care System (Callable 11/1/2004)........................ 6.750 11/01/2009 1,766,750
------------
2,541,563
MISSOURI - 2.21%
2,095,000 Independence, Missouri Tax Increment Revenue -
Homart Development Company (Callable 04/01/2004)................... 8.750 04/01/2015 2,220,700
NEW JERSEY - 3.64%
3,485,000 New Jersey Economic Development Authority -
Sayreville Senior Living Centre (Callable 04/01/2004).............. 8.000 04/01/2014 3,667,963
NEW MEXICO - 0.96%
1,000,000 Santa Fe County, New Mexico Project Revenue -
El Castillo Retirement Residences (Callable 05/15/2003)............ 5.250 05/15/2028 967,500
NEW YORK - 2.78%
2,855,000 Erie County, NY Industrial Development Agency -
DePaul Properties, Incorporated (Callable 09/01/2002).............. 6.500 09/01/2018 2,801,469
OHIO - 3.39%
827,419 Clark County, Ohio Industrial Development Revenue -
Main Associates Project............................................ 8.000 11/01/2005 797,425
1,050,000 Montgomery County, Ohio Health Care Facilities -
Friendship Village of Dayton (Callable 02/01/2003)................. 5.375 02/01/2022 1,022,438
1,700,000 Montgomery County, Ohio Health Care Facilities -
Friendship Village of Dayton (Callable 02/01/2003)................. 5.500 02/01/2007 1,595,875
------------
3,415,738
OKLAHOMA- 6.20%
1,065,000 Tulsa County, Oklahoma Industrial Authority - Multifamily
Housing 1st Mortgage Revenue (Callable 12/01/2005)................. 7.400 12/01/2017 974,475
5,135,000 Tulsa County, Oklahoma Industrial Authority - Tulsa-American
Housing Foundation Apartments (Callable 03/01/2002)................ 8.250 03/01/2020 5,263,375
------------
6,237,850
PENNSYLVANIA - 22.20%
275,000 Allegheny County, Pennsylvania Hospital Development Authority -
Allegheny Valley Hospital (Callable 08/01/2000).................... 7.600 08/01/2001 272,330
295,000 Allegheny County, Pennsylvania Hospital Development Authority -
Allegheny Valley Hospital (Callable 08/01/2000).................... 7.700 08/01/2002 289,469
6,400,000 Allegheny County, Pennsylvania Industrial Development
Authority - Lanchester Energy Partners............................. 6.800 01/01/2005 6,152,000
1,545,000 Cumberland County, Pennsylvania Industrial Development Revenue -
Beverly Enterprises, Incorporated.................................. 5.300 10/01/2003 1,485,131
2,000,000 Cumberland County, Pennsylvania Industrial Development Revenue -
Beverly Enterprises, Incorporated (Callable 10/01/2003)............ 5.500 10/01/2008 1,840,000
4,270,000 Cumberland County, Pennsylvania Industrial Municipal Authority -
Carlisle Hospital and Health Services (Callable 11/15/2004)........ 6.800 11/15/2014 3,997,788
586,000 Montgomery County, Pennsylvania Industrial Development Authority
Revenue - Meadowood Corporation (Callable 07/01/200)............... 5.150 12/01/2003 564,025
2,550,000 Philadelphia Authority for Industrial Development -
The Baptist Home of Philadelphia (Callable 11/15/2003)............. 5.250 11/15/2028 2,448,000
955,000 Scranton-Lackawanna Health & Welfare Authority -
Moses Taylor Hospital.............................................. 5.550 07/01/2004 906,056
1,000,000 Scranton-Lackawanna Health & Welfare Authority -
Moses Taylor Hospital.............................................. 5.650 07/01/2005 940,000
3,600,000 Westmoreland County, Pennsylvania Industrial Development
Authority - Lancaster Energy Partners.............................. 6.800 01/01/2005 3,451,500
------------
22,346,299
</TABLE>
Value Report | 37
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND SHORT DURATION HIGH-YIELD MUNICIPAL FUND [CONT'D]
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Long-Term Investments - 106.85% (cont'd) Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 106.85% (cont'd)
TEXAS - 18.48%
$ 1,000,000 Danforth, Texas Health Facilities Corporation -
Heritage Duval Gardens (Callable 07/01/2003)...................... 7.375% 07/01/2028 $ 800,000
5,315,000 Jefferson County, Texas Health Facilities Development Corporation -
Baptist Healthcare System (Callable 07/01/2000)................... 8.875 06/01/2021 5,323,504
190,000 Rusk County, Texas Health Facilities Corporation -
Sugarland Retirement Communities (Callable 03/01/2002) (b)........ 6.375 03/01/2006 180,738
270,000 Rusk County, Texas Health Facilities Corporation -
Sugarland Retirement Communities (Callable 03/01/2002) (b)........ 6.500 03/01/2007 254,813
155,000 Rusk County, Texas Health Facilities Corporation -
Sugarland Retirement Communities (Callable 03/01/2002) (b)........ 6.625 03/01/2008 145,506
1,430,000 Rusk County, Texas Health Facilities Corporation -
Sugarland Retirement Communities (Callable 03/01/2002) (b)........ 7.500 03/01/2014 1,215,500
1,800,000 Rusk County, Texas Health Facilities Corporation -
Sugarland Retirement Communities (Callable 03/01/2002) (b)........ 7.750 03/01/2019 1,530,000
1,000,000 San Antonio, Texas Health Facilities Development Corporation -
Beverly Enterprises, Incorporated (Callable 12/01/2002)........... 8.250 12/01/2019 1,040,000
810,000 Tarrant County, Texas Health Facilities Development Corporation -
St. Joseph Long Term Care Facility (b)............................ 6.500 05/01/2004 607,500
6,930,000 Tarrant County, Texas Health Facilities Development Corporation -
Westchester Retirement Communities (Callable 08/01/2002).......... 8.250 08/01/2028 6,288,975
1,295,000 Wharton, Texas Housing Development Corporation -
University Place Apartments....................................... 5.500 06/01/2010 1,215,681
------------
18,602,217
VIRGINIA - 1.45%
1,495,000 Newport News, Virginia Redevelopment & Housing Authority -
St. Michael's Apartments (Callable 11/01/2002).................... 7.625 11/01/2018 1,455,756
WISCONSIN - 2.47%
2,455,000 Wisconsin Health & Education Facilities Authority -
Benchmark Healthcare of Wisconsin (Callable 10/15/2006)........... 8.500 10/15/2026 2,482,619
------------
TOTAL MUNICIPAL BONDS (Cost $113,887,279)........................... 107,539,006
------------
TOTAL LONG-TERM INVESTMENTS (Cost $113,887,279)..................... $107,539,006
------------------------------------------------------------------------------------------------------------------------------------
Par Amount Short-Term Investments - 1.37% Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS - 1.37%
ALABAMA - 0.37%
$ 470,000 Valley, Alabama Special Care Facilities Finance Authority -
Lanier Memorial Hospital...................................... 5.000% 11/01/2000 $ 369,626
NEW JERSEY - 0.75%
1,378,577 South Amboy, New Jersey Housing Authority -
Shore Gate Village Grand Project (b).......................... 6.000 12/15/2000 758,217
PENNSYLVANIA - 0.25%
255,000 Allegheny County, Pennsylvania Hospital Development Authority -
Allegheny Valley Hospital..................................... 7.500 08/01/2000 254,860
------------
TOTAL MUNICIPAL BONDS (Cost $2,003,652)......................... 1,382,703
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $2,003,652).................. $ 1,382,703
------------
TOTAL INVESTMENTS (Cost $115,890,931)........................... 108.22% $108,921,709
Liabilities, less Cash and receivables.......................... (8.22) (8,277,488)
------ ------------
TOTAL NET ASSETS................................................ 100.00% $100,644,221
============
</TABLE>
(a) All or a portion of security pledged to cover margin requirements for
futures contracts.
(b) Defaulted security.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
38 | Semi-Annual July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND HIGH-YIELD MUNICIPAL BOND FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Long-Term Investments - 107.93% Coupon Maturity Value
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 107.93%
ALABAMA - 5.18%
$ 1,921,860 Mobile, Alabama Industrial Development Board -
Mobile Energy Services (Callable 01/01/2005) (b)............. 6.950% 01/01/2020 $ 845,618
1,970,000 Vance, Alabama Governmental Utility Services Corporation -
Sewer Services Revenue (Callable 10/01/2007)................. 7.500 10/01/2018 1,903,513
1,000,000 West Jefferson, Alabama Amusement and Public Park Authority -
Visionland Alabama (Callable 02/01/2004)(a).................. 8.000 02/01/2021 920,000
-------------
3,669,131
FLORIDA - 8.89%
2,000,000 Mexico Beach, Florida Public Service Facilities -
Heritage House of Sarasota (Callable 12/01/2002) (b)......... 8.000 12/01/2027 1,400,000
2,230,000 Seminole County, Florida Industrial Development Authority -
RHA/Fern Park MR, Incorporated (Callable 04/01/2002)......... 9.250 04/01/2012 2,235,575
3,135,000 Sumter County, Florida Industrial Development Authority -
Wecare Nursing Center (Callable 04/01/2009).................. 6.750 04/01/2029 2,664,750
-------------
6,300,325
GEORGIA - 3.24%
2,575,000 Houston County, Georgia Development Authority -
Grantley, Incorporated Project (Callable 04/01/2003)......... 7.375 04/01/2028 2,294,969
ILLINOIS - 13.23%
200,000 Chicago, Illinois Health Facilities -
Heritage Care of Chicago (Callable 07/01/2003)............... 7.200 07/01/2010 160,000
200,000 Chicago, Illinois Health Facilities -
Heritage Care of Chicago (Callable 07/01/2003)............... 7.300 07/01/2011 160,000
1,000,000 Chicago, Illinois Health Facilities -
Heritage Care of Chicago (Callable 07/01/2003)............... 7.625 07/01/2028 800,000
1,725,000 Granite City, Illinois Hospital Facility Revenue -
St. Elizabeth Medical Center (Callable 07/01/2001)........... 8.125 06/01/2008 1,645,219
2,000,000 Illinois Development Finance Authority -
Spring Grove Apartments (Callable 01/01/2009)................ 7.000 01/01/2029 1,750,000
880,468 Robbins Illinois Resource Recovery Revenue -
Restructuring Project - Series A............................. 8.375 10/15/2016 440,234
344,531 Robbins Illinois Resource Recovery Revenue -
Restructuring Project - Series B............................. 8.375 10/15/2016 172,266
590,717 Robbins Illinois Resource Recovery Revenue -
Restructuring Project - Series C............................. 7.250 10/15/2024 567,827
136,325 Robbins Illinois Resource Recovery Revenue -
Restructuring Project - Series C............................. 7.250 10/15/2009 135,303
274,220 Robbins Illinois Resource Recovery Revenue -
Restructuring Project - Series D............................. 0.000 10/15/2009 128,165
3,950,000 Worth, Illinois Nursing Home Revenue - Belhaven
Convalescent Center (Callable 12/15/2002).................... 7.250 12/15/2027 3,411,811
-------------
9,370,825
INDIANA - 2.46%
715,000 Beech Grove, Indiana Economic Development Revenue -
Diplomat South Apartments (Callable 01/01/2003).............. 7.000 01/01/2028 669,419
1,200,000 Beech Grove, Indiana Economic Development Revenue -
Beech Grove Village Apartments (Callable 01/01/2003)......... 7.000 01/01/2028 1,074,000
-------------
1,743,419
LOUISIANA - 3.35%
2,700,000 Louisiana Housing Finance Agency -
Southside Villa Apartments (Callable 07/01/2003)............. 7.000 07/01/2028 2,376,000
MASSACHUSETTS - 2.42%
1,935,000 Massachusetts Development Finance Agency -
MCHSP Human Services Providers (Callable 07/01/2009)......... 6.750 07/01/2018 1,714,894
</TABLE>
Value Report | 39
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND HIGH-YIELD MUNICIPAL BOND FUND [CONT'D]
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Long-Term Investments - 107.93% (cont'd) Coupon Maturity Value
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 107.93% (cont'd)
MICHIGAN - 3.18%
$ 1,140,000 Redford Township, Michigan Economic Development Corporation -
The Malachi Corporation (Callable 05/01/2003) (b)............... 7.500% 05/01/2028 $ 971,850
1,500,000 Riverview, Michigan Economic Development Corporation -
The Malachi Corporation (Callable 05/01/2003) (b)............... 7.500 05/01/2028 1,278,750
-------------
2,250,600
MISSISSIPPI - 3.71%
3,000,000 Tupelo, Mississippi Housing Authority -
Tupelo Apartment Homes (Callable 01/01/2004).................... 7.250 01/01/2029 2,628,750
MISSOURI - 4.19%
1,350,000 Jackson County, Missouri Industrial Development Authority -
Santa Fe Village (Callable 07/01/2004).......................... 7.000 07/01/2019 1,220,063
150,000 Jackson County, Missouri Industrial Development Authority -
Santa Fe Village (Callable 07/01/2004).......................... 7.000 07/01/2029 132,563
1,675,000 St. Louis County, Missouri Industrial Development Authority -
Dasal Caring Centers (Callable 12/01/2007)...................... 7.750 12/01/2016 1,614,281
-------------
2,966,907
NEW JERSEY - 3.50%
2,965,000 New Jersey Economic Development Authority -
Sayreville Senior Living Centre (Callable 04/01/2009)........... 6.375 04/01/2029 2,479,481
NEW YORK - 1.19%
975,000 New York City Industrial Development Authority -
A Very Special Place, Inc. (Callable 07/01/2009)................ 5.750 01/01/2029 844,594
OHIO - 1.41%
400,000 Franklin County, Ohio Hospital Facilities -
Worthington Christian Village................................... 7.875 06/01/2005 380,000
675,000 Franklin County, Ohio Hospital Facilities -
Worthington Christian Village (Callable 06/01/2005)............. 8.000 06/01/2010 621,000
-------------
1,001,000
OKLAHOMA - 10.62%
3,000,000 Tulsa County, Oklahoma Industrial Authority -
Multifamily Housing 1st Mortgage Revenue (Callable 12/01/2005).. 7.500 12/01/2027 2,688,750
2,000,000 Tulsa County, Oklahoma Industrial Authority -
Shadybrook Apartments (Callable 07/01/2003)..................... 6.375 07/01/2028 1,767,500
3,500,000 Tulsa County, Oklahoma Industrial Authority -
Tulsa-America Housing Foundation Apartments
(Callable 03/01/2002)........................................... 7.250 03/01/2029 3,066,875
-------------
7,523,125
PENNSYLVANIA - 2.12%
1,600,000 Westmoreland County, Pennsylvania Industrial Development
Authority - Lanchester Energy Partners.......................... 7.000 01/01/2008 1,504,000
TENNESSEE - 2.43%
630,000 Shelby County, Tennessee Health, Education & Housing
Facilities - Winfield Village of Cordova (Callable 08/29/2006).. 8.500 07/01/2026 633,150
1,225,000 Sweetwater, Tennessee Industrial Development Board -
Wood Presbyterian Home (Callable 01/01/2006).................... 7.750 01/01/2029 1,088,719
-------------
1,721,869
</TABLE>
40 | Semi-Annual: July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND HIGH-YIELD MUNICIPAL BOND FUND [CONT'D]
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Long-Term Investments - 107.93% (cont'd) Coupon Maturity Value
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 107.93% (cont'd)
TEXAS - 21.65%
$ 2,370,000 Bexar County, Texas Housing Finance Corporation -
King's Point & Thompson Place Apartments (Callable 07/01/2003)... 7.000% 07/01/2028 $ 2,118,188
665,000 Danforth, Texas Health Facilities Corporation -
Sam Houston Long Term Care Facility (Callable 03/01/2004)........ 8.250 03/01/2027 532,000
1,500,000 Danforth, Texas Health Facilities Corporation -
Heritage Duval Gardens (Callable 07/01/2003)..................... 7.375 07/01/2028 1,200,000
2,405,000 Edinburg, Texas Industrial Development Corporation -
Water Park Project............................................... 7.000 09/01/2006 2,059,281
2,620,000 Edinburg, Texas Industrial Development Corporation -
Water Park Project (Callable 09/01/2008)......................... 7.500 09/01/2023 2,004,300
3,000,000 Lubbock, Texas Health Facilities Development Corporation -
Carillon, Inc. (Callable 07/01/2009)............................. 6.500 07/01/2019 2,640,000
1,095,000 Rusk County, Texas Health Facilities Corporation -
Sugarland Retirement Communities (Callable 03/01/2002) (b)....... 8.250 03/01/2028 930,750
3,750,000 Tarrant County, Texas Health Facilities Development Corporation -
Westchester Retirement Communities (Callable 08/01/2002)......... 8.000 08/01/2025 3,337,500
685,000 Tarrant County, Texas Health Facilities Development Corporation -
St. Joseph Long Term Care Facility (Callable 05/01/2004) (b)..... 8.500 05/01/2027 513,750
-------------
15,335,769
VIRGINIA - 2.88%
2,250,000 Newport News, Virginia Redevelopment & Housing Authority -
St. Michaels Apartment (Callable 11/01/2008)..................... 7.250 11/01/2028 2,039,063
WISCONSIN - 12.28%
1,535,000 Wisconsin Health & Education Facilities Authority -
Benchmark Healthcare of Wisconsin (Callable 10/15/2006).......... 8.500 10/15/2026 1,552,269
2,430,000 Wisconsin Health & Education Facilities Authority -
Benchmark Healthcare of Green Bay (Callable 05/01/2007).......... 7.750 05/01/2027 2,241,675
580,000 Wisconsin Health & Education Facilities Authority -
Benchmark Healthcare of Green Bay (Callable 12/01/2008).......... 6.750 12/01/2028 471,973
2,000,000 Wisconsin Health & Education Facilities Authority -
Community Rehabilitation Providers (Callable 12/01/2008)......... 6.875 12/01/2023 1,792,500
1,000,000 Wisconsin Health & Education Facilities Authority -
RFDF, Incorporated Project (Callable 07/15/2007)................. 7.375 07/15/2027 840,000
2,000,000 Wisconsin Health & Education Facilities Authority -
The Millennium Housing Foundation (Callable 07/01/2008).......... 6.100 01/01/2028 1,800,000
-------------
8,698,417
TOTAL MUNICIPAL BONDS (Cost $85,269,942)........................... 76,463,138
-------------
TOTAL LONG-TERM INVESTMENTS (Cost $85,269,942)..................... $ 76,463,138
-------------
TOTAL INVESTMENTS (Cost $85,269,942)............................... 107.93% $ 76,463,138
Liabilities, less Cash and receivables............................. (7.93) (5,619,612)
------ -------------
TOTAL NET ASSETS................................................... 100.00% $ 70,843,526
=============
</TABLE>
(a) All or a portion of security pledged to cover margin requirements for
futures contracts.
(b) Defaulted security.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
Value Report | 41
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND WISCONSIN TAX FREE FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Municipal Bonds - 96.13% Coupon Maturity Value
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN - 79.46%
$ 15,000 Amery, WI Housing Authority - Revenue Bonds.......................... 7.375% 05/01/2005 $ 15,188
300,000 Appleton, WI Housing Authority - Industrial Park..................... 6.500 10/01/2016 283,500
1,390,000 Appleton, WI Housing Authority - Industrial Park..................... 6.750 10/01/2026 1,290,963
900,000 Bristol, WI Community Development Authority.......................... 6.125 03/01/2012 915,750
2,930,000 Brown County, WI Housing Authority - R.P. Terrace.................... 6.500 06/01/2019 2,893,375
200,000 Brown County, WI Housing Auth. - Univ. Village Housing............... 5.400 04/01/2017 179,750
1,930,000 Cudahy, WI Community Development Authority........................... 5.100 06/01/2017 1,785,250
1,575,000 Cudahy, WI Community Development Authority........................... 5.125 06/01/2019 1,445,063
75,000 Dane County, WI Housing Authority - Forest Harbor Apts............... 5.950 07/01/2013 75,188
25,000 Dane County, WI Housing Authority - Forest Harbor Apts............... 6.000 07/01/2014 25,094
265,000 Deforest, WI Redev. Auth. - Lease Revenue Bonds...................... 6.200 02/01/2014 273,281
435,000 Deforest, WI Redev. Auth. - Lease Revenue Bonds...................... 6.250 02/01/2018 444,244
685,000 Eau Claire, WI Housing Auth. - London Hill........................... 6.250 05/01/2015 661,881
550,000 Elkhart Lake, WI Community Development Authority..................... 6.000 04/01/2015 555,500
175,000 Evansville, WI Housing Authority - Baker Block Project............... 5.750 12/01/2016 173,688
1,000,000 Glendale, WI Community Development Authority......................... 5.400 09/01/2018 928,750
2,805,000 Green Bay, WI Housing Authority - Pheasant Run Project............... 6.500 09/01/2019 2,724,356
1,000,000 Green Bay, WI Redevelopment Fort James Corporation................... 5.600 05/01/2019 900,000
100,000 Hartford, WI Community Development Authority......................... 5.450 12/01/2002 101,625
200,000 Hartford, WI Community Development Authority......................... 5.800 12/01/2005 208,000
210,000 Hartford, WI Community Development Authority......................... 6.000 12/01/2007 218,400
225,000 Hartford, WI Community Development Authority......................... 6.100 12/01/2008 234,281
55,000 Hudson, WI Christian Community Home.................................. 6.700 05/01/2008 54,106
75,000 Hudson, WI Christian Community Home.................................. 6.800 05/01/2009 73,594
65,000 Hudson, WI Christian Community Home.................................. 6.900 05/01/2010 63,781
250,000 Hudson, WI Christian Community Home.................................. 7.000 05/01/2023 230,313
250,000 Hudson, WI Wintergreen Apartments.................................... 6.000 07/01/2020 224,375
725,000 Jackson, WI Community Development Authority.......................... 5.100 12/01/2017 655,219
545,000 La Crosse, WI Housing Authority - Ping Manor Project................. 6.000 04/01/2005 536,825
1,100,000 La Crosse, WI Housing Authority - Ping Manor Project................. 6.375 04/01/2012 1,075,250
1,760,000 La Crosse, WI Housing Authority - Forest Park Project................ 6.375 12/01/2018 1,680,800
350,000 La Crosse, WI Housing Authority - Washburn........................... 6.500 10/01/2026 321,125
1,000,000 La Crosse, WI Housing Authority - Meadow Wood Project................ 6.250 01/01/2028 856,250
100,000 Little Chute, WI Community Development Authority..................... 5.625 03/01/2019 97,500
305,000 Madison, WI CDA - Dempsey Manor Project.............................. 6.400 10/01/2018 292,800
160,000 Madison, WI CDA - Dempsey Manor Project.............................. 6.650 10/01/2025 150,200
180,000 Madison, WI CDA - Second Mortgage - Revenue Bonds.................... 5.875 07/01/2016 172,575
1,435,000 Madison, WI CDA - Edgewood College................................... 6.250 04/01/2014 1,483,431
1,000,000 Madison, WI CDA - Meriter Retirement Project......................... 6.125 12/01/2019 896,250
165,000 Markesan, WI CDA - Elderly Housing Revenue Bonds..................... 6.750 10/01/2009 160,256
190,000 Markesan, WI CDA - Elderly Housing Revenue Bonds..................... 6.900 10/01/2011 185,013
635,000 Mayville, WI Community Development Authority......................... 5.600 04/01/2018 596,900
100,000 Menomonee Falls, WI CDA - Village Square Project..................... 5.200 09/01/2009 93,750
950,000 Menomonee Falls, WI CDA - Village Square Project..................... 5.350 09/01/2016 871,625
1,270,000 Milwaukee, WI Housing Auth. - Renaissance Apartments................. 5.250 01/01/2025 1,128,713
215,000 Milwaukee, WI Housing Auth. - Blatz Apartments....................... 7.500 12/01/2028 218,225
1,755,000 Milwaukee, WI Re. Auth. - Wisc. Ave./M.L. King, Jr. Dr............... 5.600 09/01/2009 1,787,906
11,000,000 Milwaukee, WI Redev. Auth. Dev. Ref - 2430 West WI Ave Project (a)... 5.500 09/01/2012 11,055,000
3,000,000 Milwaukee, WI Redevelopment Auth. - Campus Town...................... 5.700 11/01/2018 3,015,000
3,550,000 Milwaukee, WI Redevelopment Auth. - Schlitz Park..................... 5.500 01/01/2017 3,203,875
3,000,000 Milwaukee, WI Redevelopment Auth. - Schlitz Park..................... 5.600 01/01/2015 2,745,000
215,000 Milwaukee, WI Redevelopment Auth. - YWCA............................. 5.250 06/01/2019 196,725
750,000 Milwaukee, WI Redevelopment Auth. - YWCA............................. 5.300 06/01/2029 695,625
200,000 Milwaukee, WI Redevelopment Auth. - YWCA............................. 5.150 06/01/2019 184,500
175,000 Milwaukee, WI Redevelopment Auth. - YWCA............................. 5.200 06/01/2029 157,500
65,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 11/01/2003 54,763
65,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 11/01/2004 51,838
70,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 05/01/2005 54,513
65,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 11/01/2005 49,400
70,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 05/01/2006 51,363
65,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 11/01/2006 46,394
70,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 05/01/2007 48,388
65,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 11/01/2007 43,713
70,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 05/01/2009 42,000
65,000 New Berlin, WI Housing Authority - Apple Glen........................ 0.000 11/01/2009 37,781
</TABLE>
42 | Semi-Annual July 1, 2000
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND WISCONSIN TAX FREE FUND [CONT'D]
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Municipal Bonds - 96.13% (cont'd) Coupon Maturity Value
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN - 79.46% [cont'd]
$ 70,000 New Berlin, WI Housing Authority - Apple Glen.................. 0.000% 05/01/2010 $ 37,625
1,210,000 New Berlin, WI Housing Authority - Apple Glen.................. 6.700 11/01/2017 1,213,025
650,000 New Berlin, WI Housing Authority - Apple Glen.................. 6.700 11/01/2020 651,625
125,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.400 05/01/2008 124,844
125,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.400 11/01/2008 124,844
105,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.500 05/01/2009 105,131
125,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.600 05/01/2010 125,313
150,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.700 05/01/2011 150,750
155,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.700 11/01/2011 155,775
165,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.800 11/01/2012 166,238
160,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.850 05/01/2013 161,200
165,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.850 11/01/2013 166,238
1,015,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 7.125 05/01/2024 1,028,956
135,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.900 05/01/2014 136,013
190,000 New Berlin, WI Housing Authority - Pinewood Creek.............. 6.900 11/01/2014 191,425
1,000,000 New Richmond, WI Com. Dev. Auth. - Senior Housing.............. 5.850 10/01/2020 820,000
3,000,000 New Richmond, WI Com. Dev. Auth. - Senior Housing.............. 6.000 10/01/2032 2,407,500
1,000,000 Oak Creek, WI Housing Authority - Wood Creek................... 5.500 07/20/2019 972,500
2,130,000 Oak Creek, WI Housing Authority - Wood Creek................... 5.625 07/20/2029 2,034,150
50,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 07/20/2007 34,250
125,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 01/20/2011 69,375
125,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 07/20/2011 67,500
65,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 01/20/2012 33,963
125,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 01/20/2013 61,094
125,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 07/20/2013 58,906
60,000 Oak Creek, WI Housing Authority - Wood Creek................... 0.000 01/20/2014 27,525
80,000 Oak Creek, WI Housing Authority - Country Oaks II.............. 6.000 08/01/2010 78,400
1,440,000 Oak Creek, WI Housing Authority - Country Oaks II.............. 6.200 08/01/2017 1,391,400
2,980,000 Oak Creek, WI Housing Authority - Country Oaks II.............. 6.300 08/01/2028 3,024,700
2,900,000 Oconto Falls, WI Community Development Authority............... 7.750 12/01/2022 2,816,625
1,500,000 Oconto Falls, WI Community Development Authority............... 8.125 12/01/2022 1,462,500
50,000 Omro, WI CDA - Revenue Bonds................................... 5.750 12/01/2006 51,688
335,000 Omro, WI CDA - Revenue Bonds................................... 5.875 12/01/2011 344,631
200,000 Outagamie, WI Housing Authority - First Mortgage............... 5.000 11/15/2003 197,500
5,000 Racine, WI Elderly Housing Authority - Lincoln Lutheran........ 7.100 10/01/2004 5,000
10,000 Racine, WI Elderly Housing Authority - Lincoln Lutheran........ 7.150 10/01/2005 10,000
200,000 River Falls, WI Housing Authority - Lutheran Home Project...... 5.750 04/01/2028 161,500
105,000 St. Croix Falls, WI CDA Lease Revenue.......................... 5.900 12/01/2006 107,231
115,000 St. Croix Falls, WI CDA Lease Revenue.......................... 6.000 12/01/2007 117,444
1,190,000 St. Croix Falls, WI CDA Lease Revenue.......................... 6.400 12/01/2014 1,209,338
170,000 Schofield, WI CDA - Lease Revenue.............................. 6.000 10/01/2012 173,613
500,000 Schofield, WI CDA - Lease Revenue.............................. 6.200 10/01/2017 505,625
175,000 Sheboygan, WI Housing Authority - Rocky Knoll Project.......... 5.250 12/01/2013 160,344
125,000 Sheboygan, WI Housing Authority - Rocky Knoll Project.......... 5.300 12/01/2016 120,156
970,000 SE WI Professional Baseball Park District...................... 0.000 12/15/2015 401,338
1,000,000 SE WI Professional Baseball Park District...................... 0.000 12/15/2017 361,250
2,150,000 SE WI Professional Baseball Park District...................... 5.500 12/15/2026 2,090,875
3,000,000 SE WI Professional Baseball Park District...................... 6.100 12/15/2029 3,011,250
250,000 Sparta, WI Housing Authority - Morrow Memorial Home............ 5.750 06/01/2022 198,125
100,000 Stevens Point, WI CDA - Mrtge. Refunding - Edgewater........... 6.500 09/01/2006 102,500
560,000 Stevens Point, WI CDA - Mrtge. Refunding - Edgewater........... 6.625 09/01/2009 572,600
270,000 Two Rivers, WI CDA - Arch Forest Project....................... 6.350 12/15/2012 258,525
405,000 Waukesha, WI HA - Multifamily - The Court Apartments........... 5.800 04/01/2025 397,406
1,000,000 Waukesha, WI HA - Multifamily - The Court Apartments........... 6.000 04/01/2036 960,000
2,800,000 Waukesha, WI HA - The Arboretum Project........................ 5.250 12/01/2021 2,495,500
715,000 Waukesha, WI HA - Westgrove Woods.............................. 6.750 02/01/2027 664,056
1,500,000 Waukesha, WI HA - Multifamily - Oak Hill Terrace Project....... 5.450 06/01/2027 1,366,875
750,000 Waukesha, WI HA - Riverwalk Apartments......................... 5.625 12/01/2020 674,063
530,000 Waupun, WI Hsg Auth Christian Home & Rehab Center.............. 5.875 08/01/2014 479,650
705,000 Waupun, WI Hsg Auth Christian Home & Rehab Center.............. 6.000 08/01/2019 632,738
2,000,000 Waupun, WI Hsg Auth Christian Home & Rehab Center.............. 6.250 08/01/2029 1,780,000
</TABLE>
Value Report | 43
<PAGE>
Schedule of Investments June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
HEARTLAND WISCONSIN TAX FREE FUND [CONT'D]
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Amount Municipal Bonds - 96.13% (cont'd) Coupon Maturity Value
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 79.46% [cont'd]
<S> <C> <C> <C> <C>
$ 75,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000% 05/01/2003 $ 64,969
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2003 84,500
105,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2004 86,231
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2004 80,000
70,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2005 54,513
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2005 75,875
105,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2006 77,044
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2006 71,500
105,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2007 72,713
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2007 67,375
105,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2008 67,725
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2008 62,500
105,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2009 63,263
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2009 58,625
105,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 05/01/2010 59,456
100,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 0.000 11/01/2010 55,000
1,060,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 6.700 11/01/2019 1,021,575
615,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 6.700 11/01/2022 591,169
1,200,000 Wauwatosa, WI HA - Hawthorne Terrace Project................. 6.700 11/01/2015 1,167,000
2,720,000 West Allis, WI CDA - Poblocki Investments Project............ 6.100 05/01/2007 2,750,600
100,000 Winnebago County, WI HA - 1st Mortgage Revenue Bonds......... 5.625 05/01/2005 98,125
105,000 Winnebago County, WI HA - 1st Mortgage Revenue Bonds......... 5.625 05/01/2006 100,406
115,000 Winnebago County, WI HA - 1st Mortgage Revenue Bonds......... 5.625 05/01/2007 108,675
120,000 Winnebago County, WI HA - 1st Mortgage Revenue Bonds......... 5.625 05/01/2008 112,200
125,000 Winnebago County, WI HA - 1st Mortgage Revenue Bonds......... 5.625 05/01/2009 115,469
135,000 Winnebago County, WI Housing Authority - REF-SEC 8........... 5.625 05/01/2010 126,900
10,000 Winnebago County, WI Housing Authority - Series A............ 6.200 03/01/2001 10,019
15,000 Winnebago County, WI Housing Authority - Series A............ 6.300 03/01/2012 15,056
195,000 Winnebago County, WI Housing Authority - Series A............ 6.875 03/01/2012 194,513
380,000 Winnebago County, WI Housing Authority - Series A............ 7.125 03/01/2022 380,475
2,500,000 Wisconsin Center - Revenue Bond - Public Improvements........ 0.000 12/15/2026 506,250
200,000 Wrightstown, WI Community Development Authority.............. 5.950 06/01/2014 197,250
600,000 Wrightstown, WI Community Development Authority.............. 6.000 06/01/2019 588,750
-------------
100,669,219
-------------
GUAM - 3.63%
5,000,000 Guam Power Authority......................................... 5.125 10/01/2029 4,593,750
PUERTO RICO - 3.47%
3,000,000 Puerto Rico Highway Authority................................ 6.000 07/01/2029 3,048,750
500,000 Puerto Rico Industrial Tourist Educational Medical
Facilities................................................... 5.375 02/01/2019 458,125
1,000,000 Puerto Rico Industrial Tourist Educational Medical
Facilities................................................... 5.375 02/01/2029 893,750
-------------
4,400,625
VIRGIN ISLANDS -9.57%
5,000,000 Virgin Islands Public Finance Authority...................... 5.400 10/01/2012 4,768,750
3,245,000 Virgin Islands Public Finance Authority...................... 5.500 10/01/2013 3,090,863
2,260,000 Virgin Islands Public Finance Authority...................... 5.625 10/01/2025 2,025,525
2,500,000 Virgin Islands Public Finance Authority...................... 6.000 10/01/2022 2,234,351
-------------
12,119,489
-------------
TOTAL INVESTMENTS (Cost $125,513,647)........................ 96.13% $ 121,783,083
Cash and receivables, less liabilities....................... 3.87 4,897,132
-------------
TOTAL NET ASSETS............................................. 100.00% $ 126,680,215
=============
</TABLE>
(a) All or a portion of security pledged to cover margin requirements for
futures contracts.
The accompanying Notes to Financial Statements are an integral part of this
Schedule.
44 | Semi-Annual: July 1, 2000
<PAGE>
Statements of Assets and Liabilities June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YIELD WISCONSIN
DURATION HIGH-YIELD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost................................ $ 31,514,540 $ 115,890,931 $ 85,269,942 $ 125,513,647
============ ============= ============ =============
Investments in securities, at value............................... $ 30,962,698 $ 108,921,709 $ 76,463,138 $ 121,783,083
Cash.............................................................. 3,365 74,784 40,106 3,820,054
Variation margin on open futures contracts........................ 6,250 (6,406) (4,063) (4,688)
Receivable from fund shares sold.................................. 30,000 28,476 -- --
Accrued dividends and interest.................................... 770,340 2,340,440 1,832,528 1,773,600
Prepaid expenses.................................................. 348 6,884 4,098 6,049
Deferred organization expenses.................................... -- 7,100 7,100 --
Receivable from Advisor for expense reimbursement................. 1,232 2,046 1,716 --
------------ ------------- ------------ -------------
Total Assets................................................... 31,774,233 111,375,033 78,344,623 127,378,098
------------ ------------- ------------ -------------
LIABILITIES:
Payable for securities purchased.................................. 302,852 -- -- --
Payable for fund shares redeemed.................................. 114,512 6,116 -- 104,700
Short-term notes payable.......................................... -- 10,200,000 7,100,000 --
Distributions payable............................................. 217,144 483,842 358,849 541,067
Payable to Advisor for deferred organization expenses............. -- 7,100 7,100 --
Accrued interest payable.......................................... -- 2,097 1,459 --
Accrued expenses.................................................. 12,727 31,657 33,689 52,116
------------ ------------- ------------ -------------
Total Liabilities.............................................. 647,235 10,730,812 7,501,097 697,883
------------ ------------- ------------ -------------
TOTAL NET ASSETS.................................................... 31,126,998 100,644,221 70,843,526 126,680,215
============ ============= ============ =============
NET ASSETS CONSIST OF:
Paid in capital................................................... 31,905,882 112,166,542 81,868,866 133,718,776
Accumulated undistributed net realized losses on investments...... (169,480) (3,893,206) (1,898,078) (2,929,009)
Net unrealized depreciation on investments........................ (609,404) (7,629,115) (9,127,262) (4,109,552)
------------ ------------- ------------ -------------
TOTAL NET ASSETS.................................................... $ 31,126,998 $ 100,644,221 $ 70,843,526 $ 126,680,215
------------ ------------- ------------ -------------
Shares outstanding, $.001 par value (100,000,000; 100,000,000;
100,000,000; and 100,000,000 shares authorized, respectively)..... 3,229,814 10,856,206 7,745,510 13,128,511
============ ============= ============ =============
NET ASSET VALUE, OFFERING PRICE &
REDEMPTION PRICE PER SHARE.......................................... $ 9.64 $ 9.27 $ 9.15 $ 9.65
============ ============= ============ =============
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report | 45
<PAGE>
Statements of Operations For the period from January 1, 2000 to June 30, 2000
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YIELD WISCONSIN
DURATION HIGH-YIELD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest........................................................... $ 1,245,682 $ 3,984,710 $ 2,890,892 $ 3,989,864
------------ ------------ ------------ -------------
Total investment income......................................... 1,245,682 3,984,710 2,890,892 3,989,864
------------ ------------ ------------ -------------
EXPENSES:
Management fees.................................................... 55,612 218,662 215,832 413,445
Distribution fees.................................................. 30,896 136,664 89,930 --
Transfer agent fees................................................ 11,464 40,146 28,628 46,544
Administrative fees................................................ 18,537 -- -- --
Fund accounting fees............................................... 6,169 8,760 7,171 9,520
Custodian fees..................................................... 2,046 960 8,101 30,691
Printing and communications........................................ 1,504 6,220 5,475 13,169
Postage............................................................ 1,124 5,342 7,335 8,109
Legal fees......................................................... 459 1,739 1,504 2,892
Registration fees.................................................. 9,478 16,551 15,646 --
Directors' fees.................................................... 5,805 6,925 6,476 8,335
Audit fees......................................................... 4,863 4,195 4,334 5,095
Interest expense................................................... 3,817 427,219 332,010 8,893
Amortization of organization expenses.............................. -- 2,357 2,357 --
Other operating expenses........................................... 9,850 12,522 2,880 22,997
------------ ------------ ------------ -------------
Total expenses..................................................... 161,624 888,262 727,679 569,690
Less: Fees paid indirectly......................................... -- (960) (8,101) (25,244)
Less: Expense reimbursement........................................ (47,693) (101,262) (77,577) --
------------ ------------ ------------ -------------
Net expenses....................................................... 113,931 786,040 642,001 544,446
------------ ------------ ------------ -------------
NET INVESTMENT INCOME................................................ 1,131,751 3,198,670 2,248,891 3,445,418
------------ ------------ ------------ -------------
REALIZED & UNREALIZED
(LOSSES) ON INVESTMENTS:
Net realized gains (losses) on:
Long positions.................................................. 12,632 (1,663,947) (1,402,327) (1,481,587)
Futures contracts............................................... (174,455) (115,300) (385,352) (7,340)
Net increase (decrease) in unrealized appreciation on:
Long positions.................................................. (43,228) (669,120) (743,682) 1,965,776
Futures contracts............................................... (62,587) (1,062,263) (320,458) (378,846)
------------ ------------ ------------ -------------
TOTAL REALIZED & UNREALIZED
LOSSES ON INVESTMENTS................................................ (267,638) (3,510,630) (2,851,819) 98,003
------------ ------------ ------------ -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS..................................... $ 864,113 $ (311,960) $ (602,928) $ 3,543,421
============ ============ ============ =============
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
Statements.
46
<PAGE>
Statements of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION
DURATION MUNICIPAL FUND HIGH-YIELD MUNICIPAL FUND
------------------------------ ------------------------------
Jan. 1, 2000 to Jan. 1, 2000 to
June 30, 2000 Year Ended June 30, 2000 Year Ended
(Unaudited) Dec. 31, 1999 (Unaudited) Dec. 31, 1999
------------------------------ ------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income............................................. $ 1,131,751 $ 972,128 $ 3,198,670 $ 8,674,101
Net realized gains (losses) on investments........................ (161,823) (1,195) (1,779,247) 636,531
Net decrease in unrealized appreciation on investments............ (105,815) (516,886) (1,731,383) (6,877,090)
------------- ------------ ------------- -------------
Net increase (decrease) in net assets resulting from
operations...................................................... 864,113 454,047 (311,960) 2,433,542
------------- ------------ ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................................. (1,131,751) (972,128) (3,221,567) (8,684,665)
Net realized gains on investments................................. (6,462) -- -- --
------------- ------------ ------------- -------------
Net distributions to shareholders................................. (1,138,213) (972,128) (3,221,567) (8,684,665)
------------- ------------ ------------- -------------
FUND SHARE ACTIVITY:
Proceeds from shares issued....................................... 16,433,829 36,090,426 27,455,463 112,656,415
Reinvested dividends from net investment income and
distributions from net realized gains on investments............ 783,294 829,911 2,436,145 7,898,800
Cost of shares redeemed........................................... (7,728,777) (15,716,725) (47,865,772) (141,795,585)
------------- ------------ ------------- -------------
Net increase (decrease) in net assets derived
from Fund share activity........................................ 9,488,346 21,203,612 (17,974,164) (21,240,370)
------------- ------------ ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................. 9,214,246 20,685,531 (21,507,691) (27,491,493)
NET ASSETS AT THE BEGINNING OF THE PERIOD........................... 21,912,752 1,227,221 122,151,912 149,643,405
------------- ------------ ------------- -------------
NET ASSETS AT THE END OF THE PERIOD................................. $ 31,126,998 $ 21,912,752 $ 100,644,221 $ 122,151,912
============= ============ ============= =============
UNDISTRIBUTED NET INVESTMENT INCOME................................. $ -- $ -- $ -- $ 22,897
============= ============ ============= =============
</TABLE>
<TABLE>
<CAPTION>
HIGH-YIELD WISCONSIN
MUNICIPAL BOND FUND TAX FREE FUND
------------------------------ ------------------------------
Jan. 1, 2000 to Jan. 1, 2000 to
June 30, 2000 Year Ended June 30, 2000 Year Ended
(Unaudited) Dec. 31, 1999 (Unaudited) Dec. 31, 1999
------------------------------ ------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.............................................. $ 2,248,891 $ 5,901,951 $ 3,445,418 $ 7,247,191
Net realized gains (losses) on investments......................... 1,787,679) 92,457 (1,488,927) (707,237)
Net increase (decrease) in unrealized appreciation
on investments.................................................... (1,064,140) (8,363,857) 1,586,930 (11,394,489)
-------------- ------------ ------------- --------------
Net increase (decrease) in net assets resulting
from operations................................................... (602,928) (2,369,449) 3,543,421 (4,854,535)
-------------- ------------ ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.............................................. (2,269,241) (5,912,207) (3,445,418) (7,247,191)
-------------- ------------ ------------- --------------
Net distributions to shareholders.................................. (2,269,241) (5,912,207) (3,445,418) (7,247,191)
-------------- ------------ ------------- --------------
FUND SHARE ACTIVITY:
Proceeds from shares issued........................................ 16,839,995 84,344,005 4,481,982 25,786,278
Reinvested dividends from net investment income.................... 1,407,349 4,965,536 2,160,612 5,497,147
Cost of shares redeemed............................................ (23,015,334) (75,999,185) (11,593,450) (31,065,721)
------------ ------------ ------------- -------------
Net increase (decrease) in net assets derived
from Fund share activity....................................... (4,767,990) 13,310,356 (4,950,856) 217,704
------------ ------------ ------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.............................. (7,640,159) 5,028,880 (4,852,853) 11,884,022
NET ASSETS AT THE BEGINNING OF THE PERIOD............................ 78,483,685 73,454,805 131,533,068 143,417,090
------------ ------------ ------------- --------------
NET ASSETS AT THE END OF THE PERIOD.................................. $ 70,843,526 $ 78,483,685 $ 126,680,215 $ 131,533,068
============ ============ ============= ==============
UNDISTRIBUTED NET INVESTMENT INCOME.................................. $ -- $ 20,350 $ -- $ --
============ ============ ============= ==============
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report|47
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXABLE SHORT DURATION MUNICIPAL FUND
----------------------------------------------------------------------------------------------------------------------------------
January 1, 2000 to For the December 29, 1998/(1)/
June 30, 2000 year ended through
(Unaudited) December 31, 1999 December 31, 1998
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period................................... $ 9.76 $ 10.11 $ 10.00
Income from investment operations:
Net investment income................................................ 0.44 /(5)/ 0.89 0.00
Net realized and unrealized gains (losses) on investments............ (0.12) (0.35) 0.11
-------- --------- --------
Total income from investment operations............................ (0.32) 0.54 0.11
Less distributions from:
Net investment income................................................ (0.44) (0.89) 0.00
Net realized gains on investments.................................... -- -- --
-------- --------- --------
Total distributions................................................ (0.44) (0.89) 0.00
-------- --------- --------
Net asset value, end of period......................................... $ 9.64 $ 9.76 $ 10.11
======== ========= ========
Total Return........................................................... 3.36%/(2)/ 5.51% 1.15%/(2)/
Ratios and Supplemental Data
Net assets, end of period (in thousands)............................. $ 31,127 $ 21,913 $ 1,227
Percentage of net expenses to average net assets/(4)/................ 0.98%/(3)/ 0.95% 0.48%/(3)/
Percentage of net investment income to average net assets/(4)/....... 9.21%/(3)/ 9.02% 6.36%/(3)/
Portfolio turnover rate.............................................. 24% 43% 0%
</TABLE>
/(1)/ Commencement of operations.
/(2)/ Not annualized.
/(3)/ Annualized.
/(4)/ If there had been no expense reimbursement by the Advisor, the percentage
of annualized net expenses to average net assets for the periods ended
June 30, 2000, December 31, 1999 and 1998 would have been 1.37%, 2.27%
and 4.80%, respectively, and the percentage of annualized net investment
income to average net assets would have been 8.82%, 7.70% and 2.04%,
respectively.
/(5)/ Net investment income per share is calculated using average shares
outstanding.
The accompanying Notes to Financial Statements are an integral part of these
Statements.
48|Semi-Annual: July 1, 2000
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
SHORT DURATION HIGH-YIELD MUNICIPAL FUND
-----------------------------------------------------------------------------------------------------------------------------------
January 1, 2000 to Jan. 2, 1997/(1)/
June 30, 2000 For the year ended December 31, through
---------------------------------
(Unaudited) 1999 1998 Dec. 31, 1997
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period....................... $ 9.56 $ 9.98 $ 10.15 $ 10.00
Income from investment operations:
Net investment income................................... 0.27/(5)/ 0.56 0.53 0.57
Net realized and unrealized gains (losses) on
investments............................................ (0.29) (0.42) (0.17) 0.15
--------- -------- -------- --------
Total income (loss) from investment operations....... (0.02) 0.14 0.36 0.72
--------- -------- -------- --------
Less distributions from:
Net investment income................................... (0.27) (0.56) (0.53) (0.57)
Net realized gains on investments....................... -- -- -- --
--------- -------- -------- --------
Total distributions.................................. (0.27) (0.56) (0.53) (0.57)
--------- -------- -------- --------
Net asset value, end of period............................. $ 9.27 $ 9.56 $ 9.98 $ 10.15
========= ======== ======== ========
Total Return............................................... (0.15)%/(2)/ 1.42% 3.65% 7.44%/(2)/
Ratios and Supplemental Data
Net assets, end of period (in thousands)................ $ 100,644 $122,152 $149,643 $120,942
Percentage of net expenses to average net assets/(4)/... 1.46% /(3)/ 0.75% 0.62% 0.00%/(3)/
Percentage of net investment income to average net
assets/(4)/............................................ 5.85% /(3)/ 5.69% 5.26% 5.33%/(3)/
Portfolio turnover rate................................. 2% 71% 215% 175%
</TABLE>
/(1)/ Commencement of operations.
/(2)/ Not annualized.
/(3)/ Annualized.
/(4)/ If there had been no fees paid indirectly or expense reimbursement and
management fee waiver by the Advisor, the percentage of net expenses to
average net assets for the periods ended June 30, 2000, December 31,
1999, December 31, 1998 and December 31, 1997 would have been 1.65%,
0.92%, 0.80% and 0.84%, respectively, and the percentage of net
investment income to average net assets would have been 5.67%, 5.52%,
5.08% and 4.49%, respectively.
/(5)/ Net investment income per share is calculated using average shares
outstanding.
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report|49
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH-YIELD MUNICIPAL BOND FUND
------------------------------------------------------------------------------------------------------------------------------------
January 1, 2000 to Jan. 2, 1997/(1)/
June 30, 2000 For the year ended December 31, through
---------------------------------
(Unaudited) 1999 1998 Dec. 31, 1997
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period........................ $ 9.50 $ 10.38 $ 10.45 $ 10.00
Income from investment operations:
Net investment income.................................... 0.29 0.65 0.65 0.68
Net realized and unrealized gains
(losses) on investments................................. (0.35) (0.88) 0.03 0.48
-------- ---------- --------- ---------
Total income (loss) from investment operations........ (0.06) (0.23) 0.68 1.16
-------- ---------- --------- ---------
Less distributions from:
Net investment income.................................... (0.29) (0.65) (0.65) (0.68)
Net realized gains on investments........................ 0.00 -- (0.10) (0.03)
-------- ---------- --------- ---------
Total distributions................................... (0.29) (0.65) (0.75) (0.71)
-------- ---------- --------- ---------
Net asset value, end of period.............................. $ 9.15 $ 9.50 $ 10.38 $ 10.45
======== ========== ========= =========
Total Return................................................ (0.62)%/(2)/ (2.45)% 6.66% 11.67%/(2)/
Ratios and Supplemental Data
Net assets, end of period (in thousands)................. $ 70,844 $ 78,484 $ 73,455 $ 30,608
Percentage of net expenses to average net assets/(4)/.... 1.81%/(3)/ 0.95% 0.76% 0.00%/(3)/
Percentage of net investment income to average
net assets/(4)/......................................... 6.25%/(3)/ 6.35% 6.01% 6.01%/(3)/
Portfolio turnover rate.................................. 0% 95% 223% 439%
</TABLE>
/(1)/ Commencement of operations.
/(2)/ Not annualized.
/(3)/ Annualized.
/(4)/ If there had been no fees paid indirectly or expense reimbursement and
management fee waiver by the Advisor, the percentage of net expenses to
average net assets for the periods ended June 30, 2000, December 31, 1999,
December 31, 1998 and December 31, 1997 would have been 2.02%, 1.18%,
1.08% and 1.25%, respectively, and the percentage of net investment income
to average net assets would have been 6.04%, 6.12%, 5.69% and 4.76%,
respectively.
50 | Semi-Annual: July 1, 2000
<PAGE>
Financial Highlights
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WISCONSIN TAX FREE FUND
---------------------------------------------------------------------------------------------------------------------
January 1, 2000 to
June 30, 2000 For the year ended December 31,
-----------------------------------------
(Unaudited) 1999 1998 1997
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period................... $ 9.64 $ 10.48 $ 10.44 $ 10.16
Income (loss) from investment operations:
Net investment income............................... 0.26 0.51 0.51 0.52
Net realized and unrealized gains (losses)
on investments................................. 0.01 (0.84) 0.04 0.28
-------- -------- -------- --------
Total income (loss) from investment
operations.................................... 0.27 (0.33) 0.55 0.80
Less distributions from:
Net investment income.............................. (0.26) (0.51) (0.51) (0.52)
-------- -------- -------- --------
Total distributions.............................. (0.26) (0.51) (0.51) (0.52)
-------- -------- -------- --------
Net asset value, end of period......................... $ 9.65 $ 9.64 $ 10.48 $ 10.44
======== ======== ======== ========
Total Return........................................... 2.83%/(2)/ (3.27)% 5.41% 8.06%
Ratios and Supplemental Data
Net assets, end of year (in thousands)................ $126,680 $131,533 $143,417 $131,348
Percentage of net expenses to average
net assets........................................... 0.83%/(1)(3)/ 0.82%/(1)/ 0.78%/(1)/ 0.81%/(1)/
Percentage of net investment income to
average nets assets.................................. 5.42%/(1)(3)/ 5.01%/(1)/ 4.90%/(1)/ 5.05%/(1)/
Portfolio turnover rate............................... 42% 78% 16% 8%
<CAPTION>
1996 1995
--------------------------
<S> <C> <C>
PER SHARE DATA
Net asset value, beginning of period............... $ 10.30 $ 9.21
Income (loss) from investment operations:
Net investment income........................... 0.51 0.51
Net realized and unrealized gains (losses)
on investments............................ (0.14) 1.09
-------- --------
Total income (loss) from investment
operations.................................. 0.37 1.60
Less distributions from:
Net investment income........................... (0.51) (0.51)
-------- --------
Total distributions........................... (0.51) (0.51)
-------- --------
Net asset value, end of period..................... $ 10.16 $ 10.30
======== ========
Total Return....................................... 3.81% 17.78%
Ratios and Supplemental Data
Net assets, end of year (in thousands).......... $124,545 $118,513
Percentage of net expenses to average
net assets..................................... 0.80%/(1)/ 0.84%
Percentage of net investment income to
average nets assets............................ 5.12%/(1)/ 5.23%
Portfolio turnover rate......................... 14% 11%
</TABLE>
/(1)/ The ratio does not include fees paid indirectly. If the Fund did not have
fees paid indirectly, percentage of net expenses to average net assets for
the periods ended June 30, 2000, December 31, 1999, 1998, 1997 and 1996
would have been 0.87%, 0.83%, 0.80%, 0.82% and 0.81%, respectively, and
the percentage of net investment income to average net assets would have
been 5.38%, 5.00%, 4.88%, 5.04% and 5.11%, respectively.
/(2)/ Not annualized.
/(3)/ Annualized.
The accompanying Notes to Financial Statements are an integral part of these
Statements.
Value Report | 51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
(1) Organization
Heartland Group, Inc. (the "Corporation") is registered as an open-end
management investment company under the Investment Company Act of 1940. The
Select Value Fund, Value Plus Fund, Value Fund, Taxable Short Duration
Municipal Fund, Short Duration High-Yield Municipal Fund, High-Yield
Municipal Bond Fund, each of which is a diversified fund, and Wisconsin Tax
Free Fund, which is a non-diversified fund, (the "Funds"), are seven of the
eight series of funds issued by the Corporation at June 30, 2000.
(2) Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by
the Funds in the preparation of the financial statements:
(a) Portfolio securities which are traded on stock exchanges are valued at
the last sales price as of the close of business on the day the
securities are being valued, or, lacking any sales, at the latest bid
price. Each over-the-counter security for which the last sale price on
the day of valuation is available from NASDAQ is valued at that price.
All other securities traded in the over-the-counter market are valued
at the most recent bid prices. Foreign securities are valued on the
basis of quotations from the primary market in which they are traded,
and are translated from the local currency into U.S. dollars using
exchange rates as of the close of the New York Stock Exchange. Debt
securities are stated at fair value as furnished by independent
pricing services based primarily upon information concerning market
transactions and dealer quotations for similar securities, or by
dealers who make markets in such securities. Debt securities having
maturities of 60 days or less may be valued at acquisition cost, plus
or minus any amortized discount or premium. Securities and other
assets for which quotations are not readily available are valued at
their fair value using methods determined by the Board of Directors.
(b) The Funds' policy is to comply with the requirements of the Internal
Revenue Code which are applicable to regulated investment companies
and to distribute substantially all of their taxable income to their
shareholders. The Funds accordingly paid no Federal income taxes, and
no Federal income tax provision is required.
At December 31, 1999 the Value Plus Fund had Federal income tax
capital loss carryforwards of $260,654 expiring in 2006 and
$18,713,439 expiring in 2007. The Short Duration High-Yield Municipal
Fund had Federal income tax capital loss carryforwards of $27,690
expiring in 2005; $500,994 expiring in 2006; and $1,182,905 expiring
in 2007. The High-Yield Municipal Bond Fund had a Federal income tax
capital loss carryforward of $110,399 expiring in 2007. The Wisconsin
Tax Free Fund had Federal income tax capital loss carryforwards of
$399,536 expiring in 2003; $333,310 expiring in 2005; and $376,887
expiring in 2007. The Funds do not intend to make distributions of any
future realized capital gains until their Federal income tax capital
loss carryforwards are completely utilized.
Statement of Position 93-2 requires that permanent financial reporting
and tax differences be reclassified to paid in capital. Net assets are
not affected by these reclassifications.
Net realized gains or losses may differ for Federal income tax
purposes primarily as a result of post-October losses which may not be
recognized for tax purposes until the first day of the following
fiscal year, wash sales, and the marking-to-market of open futures
contracts.
(c) Net investment income, if any, is distributed to each shareholder as a
dividend. Dividends from the Select Value and Value Funds are declared
and paid at least annually. Dividends from the Value Plus Fund are
declared and paid quarterly. Dividends from the Taxable Short Duration
Municipal, Short Duration High-Yield Municipal, High-Yield Municipal
Bond and Wisconsin Tax Free Funds are declared daily and distributed
monthly. Dividends are recorded on the ex-dividend date. Net realized
gains on investments, if any, are distributed at least annually.
(d) The Funds record security and shareholder transactions no later than
trade date plus one. Net realized gains and losses on investments are
computed on the identified cost basis. The portion of security gains
and losses resulting from changes in foreign exchange rates is
included with net realized and unrealized gains or losses from
investments. Dividend income is recognized on the ex-dividend date,
and interest income is recognized on an accrual basis. The Select
Value, Value Plus,Value and Taxable Short Duration Municipal Funds
amortize premium and accrete discount on investments utilizing the
effective interest method. The Short Duration High-Yield Municipal,
High-Yield Municipal Bond and Wisconsin Tax Free Funds amortize
premium and accrete original issue discount on investments utilizing
the effective interest method.
(e) The Funds are charged for those expenses that are directly
attributable to them. Expenses that are not directly attributable to
any one Fund are typically allocated among all Funds issued by the
Corporation in proportion to their respective net assets, number of
open shareholder accounts, or net sales, as applicable.
(f) Each Fund may enter into futures contracts for hedging purposes, such
as to protect against anticipated declines in the market value of its
portfolio securities or to manage exposure to changing interest rates.
The Fund receives from or pays to the broker on a daily basis an
amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as "variation margin,"
and are recorded by the Fund as unrealized gains or losses. When the
futures contract is closed, the Fund records a realized gain or loss
equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
The use of futures contracts involves, to varying degrees, elements of
market risk in excess of the amount recognized in the Statements of
Assets and Liabilities. The predominant risk is that the movement of a
futures contract's price may result in a loss which could render a
portfolio's hedging strategy unsuccessful. The Funds had the following
open futures contracts at June 30, 2000:
<TABLE>
<CAPTION>
TAXABLE SHORT DURATION MUNICIPAL FUND
Type Number of Contracts Expiration Date Unrealized Depreciation Notional Value
---- ------------------- --------------- ----------------------- --------------
<S> <C> <C> <C> <C>
U.S. Treasury (40) September 2000 $ (57,562) $ (3,893,750)
<CAPTION>
SHORT DURATION HIGH-YIELD MUNICIPAL FUND
Type Number of Contracts Expiration Date Unrealized Depreciation Notional Value
---- ------------------- --------------- ----------------------- --------------
<S> <C> <C> <C> <C>
Municipal Bond (205) September 2000 $(659,893) $(19,622,344)
<CAPTION>
HIGH-YIELD MUNICIPAL BOND FUND
Type Number of Contracts Expiration Date Unrealized Depreciation Notional Value
---- ------------------- --------------- ----------------------- --------------
<S> <C> <C> <C> <C>
Municipal Bond (130) September 2000 $(320,458) $(12,443,438)
<CAPTION>
WISCONSIN TAX FREE FUND
Type Number of Contracts Expiration Date Unrealized Depreciation Notional Value
---- ------------------- --------------- ----------------------- --------------
<S> <C> <C> <C> <C>
Municipal Bond (150) September 2000 $(378,703) $(14,357,813)
</TABLE>
(g) The Short Duration High-Yield Municipal, High-Yield Municipal Bond and
Wisconsin Tax Free Funds entered into a fee arrangement with its custodian
bank which provided for a fee reduction in custody fees based upon net
amounts of uninvested cash balances. The reduction of custody expenses is
shown on the Statement of Operations as "Fees paid indirectly."
52 | Semi-Annual: July 1, 2000
<PAGE>
(h) The Select Value, Value Plus and Value Funds may each engage in "short
sales against the box." These transactions involve selling a security
that a Fund owns for delivery at a specified date in the future.
Similarly, each of these Funds may also engage in short sales of
securities of an issuer ("acquiror") that has publicly announced a
proposed or pending transaction in which a portfolio security of the
Fund will be converted into securities of the acquiror.
For financial statement purposes, an amount equal to a short sale's
settlement amount is included in the Statements of Assets and
Liabilities as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to market to reflect the current
value of the short position. Subsequent fluctuations in the market
prices of securities sold short, at value, may require purchasing the
securities at prices which may differ from the market value reflected
on the Statements of Assets and Liabilities. The Fund is liable for
any dividends payable on securities while those securities are in a
short position.
(i) A restricted security is a security which has been purchased through a
private offering and cannot be resold to the general public without
prior registration under the Securities Act of 1933 (the "Act") or
pursuant to the resale limitations provided by Rule 144A under the
Act, or an exemption from the registration requirements of the Act. At
June 30, 2000, the Value Plus Fund held restricted securities equaling
1.4% of net assets.
Restricted securities that are eligible for resale to qualified
institutional buyers pursuant to Rule 144A under the Act, provided
that such securities have been determined to be liquid pursuant to the
guidelines adopted by the Board of Directors, are valued at fair value
as furnished by independent pricing services. All other restricted
securities are identified below.
<TABLE>
<CAPTION>
VALUE PLUS FUND
Security Par Amount Cost Fair Value Acquisition Date
-------- ---------- ---- ---------- ----------------
<S> <C> <C> <C> <C>
Source Capital Corporation
Conv. Bond 7.50% 03/01/2008 $1,400,000 $1,400,000 $972,222 2/98
</TABLE>
(j) Each Fund may write covered call options and purchase put options that
are traded on recognized U.S. exchanges and enter into closing
transactions with respect to such options. The Select Value Fund may
also purchase call options. The Funds may enter into options
transactions for hedging purposes, and will not use these instruments
for speculation.
For the period from January 1, 2000 through June 30, 2000, the Funds
had the following transactions in written covered call options:
VALUE FUND
<TABLE>
<CAPTION>
Number of Contracts Premium Amount
------------------- --------------
<S> <C> <C>
Balance at January 1, 2000 -- --
Options opened (Interdigital Communications, Inc. 1/00) 2000 $ 464,069
Options expired (Interdigital Communications, Inc. 2/00) (2000) (464,069)
Options closed -- --
------- -----------
Balance at June 30, 2000 -- $ --
======= ===========
</TABLE>
(k) The Value Plus and Value Funds may utilize forward currency exchange
contracts for the purpose of hedging foreign currency risk. Under
these contracts, the Funds are obligated to exchange currencies at
specific future dates. Risks arise from the possible inability of
counter-parties to meet the terms of their contracts and from
movements in currency values.
(l) The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
(3) Credit Facility
Deutsche Bank AG made available to the funds, a $100 million credit
facility pursuant to a Credit Agreement ("Agreement"), most recently
amended December 29, 1998. The primary purpose of the Agreement is to allow
the applicable Funds to avoid liquidating securities under circumstances
which the Advisor believes are unfavorable to shareholders. Outstanding
principal amounts under the credit facility bear interest at a rate per
annum equal to the New York Interbank Offering Rate plus 0.4% or the prime
rate. Commitment fees are computed at a rate per annum equal to 0.08% of
the Funds' proportional daily average unutilized credit. Commitment fees
paid during the period from January 1, 2000 through June 30, 2000 for the
Select Value, Value Plus, Value, Taxable Short Duration Municipal, Short
Duration High-Yield Municipal, High-Yield Municipal Bond, and Wisconsin Tax
Free Funds amounted to $111, $1,285, $17,856, $354, $2,024, $1,305, and
$2,014, respectively. During the period from January 1, 2000 through June
30, 2000, the following Funds utilized the credit facility:
<TABLE>
<CAPTION>
Outstanding Average Average Maximum Interest
Fund Daily Balance Interest Rate Outstanding Balance Expense
---- ------------- ------------- ------------------- -------
<S> <C> <C> <C> <C>
SELECT VALUE FUND $ 24,615 6.46% $ 700,000 $ 268
VALUE PLUS FUND 3,623,077 6.49 10,600,000 114,846
VALUE FUND 19,571,154 6.41 47,900,000 621,636
TAXABLE SHORT DURATION MUNICIPAL FUND 125,824 6.49 1,300,000 3,817
SHORT DURATION HIGH-YIELD MUNICIPAL FUND 13,254,396 6.46 18,500,000 427,219
HIGH-YIELD MUNICIPAL BOND FUND 10,265,385 6.46 15,000,000 332,010
WISCONSIN TAX FREE FUND 273,626 6.56 5,800,000 8,893
</TABLE>
(4) Investment Management Fees and Transactions with Related Parties
The Funds have management agreements with Heartland Advisors, Inc. (the
"Advisor") to serve as investment advisor and manager. Under the terms of
the agreement, the Select Value and Value Funds pay the Advisor a monthly
management fee at the annual rate of 0.75% of the average daily net assets
of the Funds; the Value Plus Fund pays the Advisor a monthly management fee
at the annual rate of 0.70% of the average daily net assets of the Fund;
the Short Duration High-Yield Municipal Fund pays the Advisor a monthly
management fee at the annual rate of 0.40% of the average daily net assets
of the Fund; the High-Yield Municipal Bond Fund pays the Advisor a monthly
management fee at the annual rate of 0.60% of the average daily net assets
of the Fund; and the Wisconsin Tax Free Fund pays the Advisor a monthly
management fee at the annual rate of 0.65% of the average daily net assets
of the Fund. The Taxable Short Duration Municipal Fund pays the Advisor a
total annual fee of 0.60%, made up of two parts - a management fee in the
amount of 0.45% of average daily net assets and an administrative fee in
the amount of 0.15% of average daily net assets.
The Select Value, Value Plus, Value, Taxable Short Duration Municipal,
Short Duration High-Yield Municipal and High-Yield Municipal Bond Funds
have adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under
the Investment Company Act of 1940. The Distributor is Heartland Advisors,
Inc. (the "Distributor"). The Plan requires the Funds to pay to the
Distributor a quarterly distribution fee on an annual basis up to 0.25% of
their daily net assets. Additionally, for the period from January 1, 2000
through June 30, 2000, the Distributor received from the Value Plus and
Value Funds $19,300 and $82,635, respectively, for brokerage fees on the
execution of purchases and sales of portfolio investments.
Value Report | 53
<PAGE>
The Funds have an agreement with the Advisor to perform certain bookkeeping
and accounting services. Under the terms of the agreement, each Fund pays
the Advisor a monthly fee at an annual rate of $12,500 plus 0.0075% of
average daily net assets over $50,000,000 for the Select Value and Value
Funds; 0.0080% of average daily net assets over $50,000,000 for the Value
Plus Fund; and 0.0085% of average daily net assets over $50,000,000 for the
Taxable Short Duration Municipal, Short Duration High-Yield Municipal, High-
Yield Municipal Bond, and Wisconsin Tax Free Funds.
During the period from April 1, 1999 through April 30, 2000, the Advisor
contractually committed to waive Select Value Fund fees paid to the extent
that annual fund operating expenses exceeded 0.95%. The Advisor
contractually committed through April 30, 2000, to reimburse the Taxable
Short Duration Municipal Fund to the extent that annual total operating
expenses exceeded 0.95%. Effective May 1, 1999 through April 30, 2000, the
Advisor contractually committed to waive fees paid to the extent that annual
fund operating expenses exceed 0.75% for the Short Duration High-Yield
Municipal Fund and 0.95% for the High-Yield Municipal Bond Fund. Under the
terms of the agreements, if operating expenses fall below the aforementioned
expense limitations, the respective Fund will begin paying the Advisor for
fees previously waived and expenses previously reimbursed. This repayment
will continue for up to three years after the end of the fiscal year in
which a fee is waived or an expense is paid, subject to any expense
limitation then in effect, until the Funds have repaid the Advisor for the
entire amount or such three-year period expires.
During the periods April 1, 1999 through December 31, 1999 and January 1,
2000 through April 30, 2000 the amounts the Advisor reimbursed the Select
Value Fund, pursuant to the agreement, were expenses of $103,217 and
$34,728, respectively, which are subject to potential repayment by the Fund,
expiring at December 31, 2002 and December 31, 2003, respectively. For the
periods from December 29, 1998 to December 31, 1998, January 1, 1999 through
December 31, 1999, and January 1, 2000 through April 30, 2000, the amounts
the Advisor reimbursed the Taxable Short Duration Municipal Fund, pursuant
to the agreement, were expenses of $287, $141,582 and $36,788, respectively,
which are subject to potential repayment by the Fund, expiring at December
31, 2001, December 31, 2002 and December 31, 2003, respectively. For the
periods from May 1, 1999 through December 31, 1999 and January 1, 2000
through April 30, 2000, the amounts the Advisor reimbursed the Short
Duration High-Yield Municipal Fund, pursuant to the agreement, were expenses
of $191,372 and $83,283, respectively, which are subject to potential
repayment by the Fund expiring at December 31, 2002 and December 31, 2003,
respectively. For the periods from May 1, 1999 through December 31, 1999 and
January 1, 2000 through April 30, 2000, the amounts the Advisor reimbursed
High-Yield Municipal Bond Fund, pursuant to the agreement, were expenses of
$159,963 and $62,784, respectively, which are subject to potential repayment
by the Fund expiring at December 31, 2002 and December 31, 2003,
respectively.
Effective May 1, 2000, the Advisor voluntarily committed to waive fees to be
paid to it by the Funds to the extent that total annual ordinary operating
expenses (excluding brokerage commissions, interest and taxes) exceed 1.90%
for the Select Value Fund, 0.95% for the Taxable Short Duration Municipal
and High-Yield Municipal Bond Funds, and 0.75% for the Short Duration High-
Yield Municipal Fund. Effective June 1, 2000, the Advisor modified the
waiver for the Select Value Fund to the extent that total annual ordinary
expenses (excluding brokerage commissions, interest and taxes) exceed 1.25%.
The Advisor may modify or discontinue these waivers and/or reimbursements at
any time without notice. If any fees are owed to the Advisor by a Fund, the
Advisor may pay the Fund's expenses indirectly by reducing the amount of
such fees owed to it by the Fund.
Officers and certain directors of the Corporation are also officers and/or
directors of Heartland Advisors, Inc.; however, they receive no compensation
from the Funds.
Each Director who is not affiliated with the Funds receives a fee for
service as a Director and is eligible to participate in a deferred
compensation plan with respect to these fees. Participants in the plan may
designate their deferred Director's fees to be invested in any of the Funds.
The Funds maintain their proportionate share of the liability for deferred
fees. As of June 30, 2000, $11,213 of deferred Directors' fees were invested
in the Select Value Fund.
As permitted under Rule 10f-3 of the Investment Company Act of 1940, the
Board of Directors of the Corporation has adopted a plan which will allow
the Funds, under certain conditions described in the Rule, to acquire newly-
issued securities from syndicates in which the Distributor is a member.
(5) Early Redemption Fee
For the Value Plus and Value Funds, certain shares purchased on or after
October 1, 1999, that are redeemed or exchanged in less than 270 days, are
assessed a fee of 1% of the current net asset value of the shares. The fee,
applied to shares redeemed or exchanged in the order in which they are
purchased, is retained by the Fund for the benefit of remaining shareholders
to defray Fund portfolio transaction expenses and facilitate portfolio
management. For financial statement purposes, these amounts are included in
the Statements of Assets and Liabilities as "paid in capital."
(6) Deferred Organization Expenses
For the Select Value, Short Duration High-Yield Municipal and High-Yield
Municipal Bond funds, organization expenses have been deferred and are being
amortized on a straight-line basis over sixty months. Payments for these
expenses were advanced by the Advisor, who will be reimbursed by the Fund
over the same period. The proceeds of any redemption of the initial shares
by the original shareholders will be reduced by a pro-rata portion of any
then unamortized expenses. Unamortized deferred organization expenses and
the related payable to the Advisor at June 30, 2000 for these funds were
$4,118, $7,100 and $7,100, respectively. Reimbursement to the Advisor of
this amount by the Fund will be subject to any expense limitations and
reimbursements in effect for the Fund at the time.
(7) Investment Transactions
During the period from January 1, 2000 through June 30, 2000, purchases and
sales of securities, other than short-term obligations, were as follows:
<TABLE>
<CAPTION>
SELECT VALUE
VALUE FUND PLUS FUND VALUE FUND
---------- --------- ----------
<S> <C> <C> <C>
Cost of purchases $ 5,425,512 $ 57,426,889 $ 319,765,081
Proceeds from sales 6,721,706 75,269,284 443,013,293
</TABLE>
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YIELD WISCONSIN
DURATION HIGH-YIELD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
-------------- -------------- --------- -------
<S> <C> <C> <C> <C>
Cost of purchases $ 11,624,508 $ 974,500 $ -- $ 26,527,84
Proceeds from sales 5,114,013 27,702,306 10,129,774 40,919,726
</TABLE>
At June 30, 2000, the gross unrealized appreciation and depreciation on
securities for tax purposes were as follows:
<TABLE>
<CAPTION>
SELECT VALUE
VALUE FUND PLUS FUND VALUE FUND
---------- --------- ----------
<S> <C> <C> <C>
Appreciation $ 532,215 $ 4,228,205 $ 231,828,658
Depreciation (620,772) (11,334,332) (118,776,363)
--------- ------------ -------------
Net Unrealized $ (88,557) $ (7,106,127) $ 113,052,295
========= ============ =============
</TABLE>
54 | Semi Annual: July 1, 2000
<PAGE>
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YIELD WISCONSIN
DURATION HIGH-YIELD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
-------------- -------------- ---------- ----------
<S> <C> <C> <C> <C>
Appreciation $ 140,804 $ 12,735 $ 416,296 $ 1,126,334
Depreciation (752,840) (7,641,850) (9,543,558) (5,536,140)
------------ -------------- ------------ -------------
Net Unrealized $ (612,036) $ (7,629,115) $ (9,127,262) $ (4,409,806)
============ ============== ============ =============
</TABLE>
At June 30, 2000, the cost of securities for Federal income tax purposes was as
follows:
<TABLE>
<CAPTION>
SELECT VALUE
VALUE FUND PLUS FUND VALUE FUND
---------- --------- ----------
<S> <C> <C> <C>
Tax Cost $ 6,662,639 $ 76,747,586 $ 898,757,786
</TABLE>
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YIELD WISCONSIN
DURATION HIGH-YIELD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
-------------- -------------- --------- --------
<S> <C> <C> <C> <C>
Tax Cost $ 31,517,172 $ 115,890,931 $ 85,269,942 $ 125,814,186
</TABLE>
(8) Fund Share Transactions
For the period from January 1, 2000 through June 30, 2000, Fund share
transactions were as follows:
<TABLE>
<CAPTION>
SELECT VALUE
VALUE FUND PLUS FUND VALUE FUND
---------- --------- ----------
<S> <C> <C> <C>
Shares issued 108,155 401,080 2,767,606
Reinvested dividends from net investment
income & distributions from net realized
gains on investments -- 48,004 976,169
Shares redeemed (174,324) (1,740,336) (5,419,367)
--------- ------------ ----------
Net decrease in Fund shares (66,169) (1,291,252) (1,675,592)
========= ============ ==========
</TABLE>
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YIELD WISCONSIN
DURATION HIGH-YIELD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
-------------- -------------- ---------- --------
<S> <C> <C> <C> <C>
Shares issued 1,702,641 2,927,991 1,818,060 468,359
Reinvested dividends from net investment
income & distributions from net realized
gains on investments 81,278 260,691 152,479 225,859
Shares redeemed (799,994) (5,108,188) (2,483,534) (1,212,578)
------------ ----------- ------------- -----------
Net increase (decrease) in Fund shares 983,925 (1,919,506) (512,995) (518,360)
============ =========== ============ ===========
</TABLE>
For the period from January 1, 1999 through December 31, 1999, Fund share
transaction were as follows:
<TABLE>
<CAPTION>
SELECT VALUE
VALUE FUND PLUS FUND VALUE FUND
---------- --------- ----------
<S> <C> <C> <C>
Shares issued 984,374 7,301,781 6,267,508
Reinvested dividends from net investment
income & distributions from net realized
gains on investments 20,177 259,697 97,413
Shares redeemed (1,069,670) (13,782,321) (26,397,406)
------------- ------------- ------------
Net decrease in Fund shares (65,119) (6,220,843) (20,032,485)
============= ============= ============
</TABLE>
<TABLE>
<CAPTION>
TAXABLE SHORT SHORT DURATION HIGH-YEILD WISCONSIN
DURATION HIGH-YEILD MUNICIPAL TAX FREE
MUNICIPAL FUND MUNICIPAL FUND BOND FUND FUND
-------------- --------------- --------- --------
<S> <C> <C> <C> <C>
Shares issued 3,631,050 11,386,623 8,250,843 2,520,059
Reinvested dividends from net investment
income & distributions from net realized
gains on investments 83,879 802,077 494,372 540,898
Shares redeemed (1,590,432) (14,412,482) (7,562,899) (3,096,969)
------------ ------------ ------------ -----------
Net increase (decrease) in Fund shares (2,124,497) (2,223,782) 1,182,316 (36,012)
============ ============ ============ ==========
</TABLE>
Value Report | 55
<PAGE>
(9) Transactions with Affiliates
The following companies are affiliated with the Value Plus and Value Funds;
that is, the Funds held 5% or more of the outstanding voting securities during
the period from January 1, 2000 through June 30, 2000. Such companies are
defined in Section (2)(a)(3) of the Investment Company Act of 1940.
<TABLE>
<CAPTION>
VALUE PLUS FUND
Share Share Realized
Balance at Balance at Gains
Security Name Jan. 1, 2000 Purchases Sales June 30, 2000 Dividends (Losses)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Blimpie International, Inc. 330,000 170,000 0 500,000 $ 17,500 $ 0
Decorator Industries, Inc. 349,600 0 0 349,600 24,472 0
Hanover Foods Corporation (Class A) 50,500 0 1,000 49,500 13,888 1,623
Lufkin Industries, Inc. 350,000 0 350,000 0 63,000 (1,755,398)
Tab Products Company 500,000 0 0 500,000 50,000 0
WRP Corporation 374,000 1,000 375,000 0 0 (1,098,765)
------------ -------------
$ 168,860 $ (2,852,540)
============ =============
</TABLE>
<TABLE>
<CAPTION>
VALUE FUND
Share Share Realized
Balance at Balance at Gains
Security Name Jan. 1, 2000 Purchases Sales June 30, 2000 Dividends (Losses)
<S> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
Akita Drilling Ltd. (Class A) 748,600 0 500,000 248,600 $ 79,776 $ 91,300
Allied Healthcare Products, Inc. 775,000 0 2,500 772,500 0 3,125
Almost Family, Inc. 308,900 0 0 308,900 0 0
The Alpine Group, Inc. 900,000 0 0 900,000 0 0
American Physicians Service Group, Inc. 187,200 0 0 187,200 0 0
Amwest Insurance Group, Inc. 242,000 0 242,000 0 0 (1,658,531)
Asia Pacific Wire & Cable Corporation Ltd. 706,000 0 0 706,000 0 0
AVTEAM, Inc. 238,200 761,800 37,000 963,000 0 (171,453)
Badger Meter, Inc. 200,000 0 0 200,000 86,000 0
Barrett Business Services, Inc. 383,300 356,700 0 740,000 0 0
BTG, Inc. 800,000 0 0 800,000 0 0
Buckhead America Corporation 184,600 0 0 184,600 0 0
Business Resource Group 500,000 0 0 500,000 0 0
Cameron Ashley Building Products, Inc. 500,000 0 500,000 0 0 2,834,802
Carey International, Inc. 0 500,000 0 500,000 0 0
Catalina Lighting, Inc. 710,000 0 0 710,000 0 0
CHC Helicopter Corporation (Class A) 562,000 438,000 0 1,000,000 0 0
The Cherry Corporation (Class A) 944,800 25,000 969,800 0 11,487,492
Childrens Comprehensive Services, Inc. 460,000 0 0 460,000 0 0
Ciprico, Inc. 353,000 47,000 0 400,000 0 0
Comdial Corporation 541,200 0 241,200 300,000 0 1,931,658
Crown Central Petroleum Corporation (Class B) 900,000 0 0 900,000 0 0
Datron Systems, Inc. 250,000 0 250,000 0 0 2,842,940
Duckwall-ALCO Stores, Inc. 370,000 30,000 0 400,000 0 0
Dynamic Materials Corporation 250,000 0 250,000 0 0 (1,012,586)
EDAP TMS S.A. (ADR) 840,000 0 17,500 822,500 0 (20,783)
EZCorp, Inc. (Class A) 718,100 0 0 718,100 8,976 0
Fiber Mark, Inc. 391,600 0 0 391,600 0 0
Financial Industries Corporation 300,000 0 0 300,000 54,000 0
Franklin Bank National Association 185,800 0 22,917 162,883 24,408 (17,176)
Gundle/SLT Environmental, Inc. 662,800 0 80,000 582,800 0 (204,058)
GZA GeoEnvironmental Technologies, Inc. 372,700 0 119,100 253,600 0 95,333
Hallmark Capital Corporation 110,000 40,000 0 150,000 13,500 0
Hallmark Financial Services, Inc. 1,060,000 0 1,060,000 0 0 (233,592)
Hallwood Energy Corporation 477,540 0 0 477,540 0 0
Hallwood Group, Inc. 89,250 0 9,200 80,050 0 (129,368)
Hampshire Group, Ltd. 252,800 11,800 0 0 0 0
Harding Lawson Associates Group, Inc. 392,600 0 392,600 0 0 1,686,425
Health Power, Inc. 340,000 0 37,500 302,500 0 (193,682)
High Plains Corporation 1,500,000 0 0 1,500,000 0 0
HMN Financial, Inc. 253,200 0 0 253,200 50,640 0
Home Federal Bancorp 268,250 0 0 268,250 73,769 0
Hotelworks.com, Inc. 1,000,000 0 156,600 843,400 0 (893,296)
In Home Health, Inc. 470,101 0 470,101 0 0 699,792
Intercontinental Life Corporation 451,600 0 451,600 0 0 (286,756)
International Aircraft Investors 430,000 0 0 430,000 0 0
International Airline Support Group, Inc. 250,000 0 10,700 239,300 0 (64,239)
Invivo Corporation 130,300 269,700 0 400,000 0 0
</TABLE>
56 | Semi Annual: July 1, 2000
<PAGE>
<TABLE>
<CAPTION>
VALUE FUND [CONT'D]
Share Share Realized
Balance at Balance at Gains
Security Name Jan. 1, 2000 Purchases Sales June 30, 2000 Dividends (Losses)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Iwerks Entertainment, Inc. 314,285/(1)/ 0 0 314,285 $ 0 $ 0
Jaco Electronics, Inc. 380,000 0 380,000 0 0 4,154,210
John B. Sanfilippo & Son, Inc. 500,000 0 0 500,000 0 0
K-Tron International, Inc. 200,000 75,000 0 275,000 0 0
LaCrosse Footwear, Inc. 500,000 0 500,000 0 0 (3,211,915)
Lindal Cedar Homes, Inc. 345,400 0 0 345,400 0 0
Lufkin Industries 0 350,000 0 350,000 63,000 0
Magal Security Systems Ltd. 650,000 0 484,700 165,300 0 (381,263)
Mapics, Inc. 100,000 2,373,700 673,700 1,800,000 0 (929,795)
Marten Transport Ltd. 333,300 1,700 0 335,000 0 0
Martin Industries, Inc. 450,000 0 5,400 444,600 0 (43,193)
Massbank Corporation 133,333 56,700 0 190,033 96,292 0
Matrix Service Company 600,000 0 56,200 543,800 0 144,140
Maxicare Health Plans, Inc. 1,000,000 0 863,100 136,900 0 (3,503,125)
Meadow Valley Corporation 250,000 0 0 250,000 0 0
MFRI, Inc. 400,000 0 0 400,000 0 0
Minntech Corporation 600,000 0 0 600,000 0 0
MMI Companies, Inc. 1,400,000 0 1,400,000 0 0 (556,345)
Motor Club of America 168,500 31,500 0 200,000 0 0
MYR Group, Inc. 500,000 0 500,000 0 18,750 12,695,395
M-Wave, Inc. 295,000 0 295,000 0 0 1,380,270
NABI, Inc. 3,145,000 0 645,000 2,500,000 0 3,349,605
National Home Health Corp. 395,000 0 0 395,000 0 0
Nu Horizons Electronics, Inc. 650,000 0 650,000 0 0 3,941,333
O.I. Corporation 326,500 0 0 326,500 0 0
Orthologic Corporation 1,815,000 0 0 1,815,000 0 0
Osteotech, Inc. 0 1,200,000 0 1,200,000 0 0
Outlook Group Corporation 467,500 0 78,400 389,100 0 (371,076)
Patrick Industries, Inc. 317,000 0 0 317,000 25,360 0
Pentech International, Inc. 749,900 0 749,900 0 0 (523,383)
Planar Systems, Inc. 500,000 100,000 600,000 0 0 3,401,775
Premium Wear, Inc. 209,000 19,100 228,100 0 0 1,362,191
RainForest Cafe, Inc. 1,100,000 310,000 0 1,410,000 0 0
Ramsay Youth Services, Inc. 750,400 50,000 0 800,400 0 0
Raytel Medical Corporation 880,000 0 0 880,000 0 0
Riviera Tool Company 336,262 0 0 336,262 0 0
The Rottlund Company, Inc. 556,000 0 0 556,000 0 0
Roy F. Weston, Inc. (Class A) 990,000 0 252,500 737,500 0 (517,266)
Rush Enterprises, Inc. 225,000 120,000 15,400 329,600 0 (101,441)
Salient 3 Communications, Inc. 402,500 0 51,200 351,300 0 126,681
Saucony, Inc. (Class B) 400,000 0 0 400,000 0 0
Scan-Optics, Inc. 600,000 0 600,000 0 0 (2,093,118)
Sholodge, Inc. 530,000 0 0 530,000 0 0
Six Rivers National Bank 93,300 0 93,300 0 0 58,273
Spacelabs Medical, Inc. 500,000 148,700 0 648,700 0 0
Speizman Industries, Inc. 300,000 0 0 300,000 0 0
Strattec Security Corporation 297,000 0 0 297,000 0 0
Sunrise Medical, Inc. 700,000 600,000 0 1,300,000 0 0
Tech-Sym Corporation 268,600 32,000 0 300,600 0 0
Todhunter International, Inc. 490,000 0 490,000 0 0 364,646
TransCoastal Marine Services, Inc. 1,000,000 0 1,000,000 0 0 (3,915,655)
Urocor, Inc. 700,000 0 41,300 658,700 0 14,059
URS Corporation 500,000 380,000 0 880,000 0 0
U.S. Global Investors, Inc. (Class A) 600,000 0 2,000 598,000 0 315
Webco Industries Inc. 475,500 24,500 0 500,000 0 0
Woodward Governor Company 0 145,500 0 145,500 8,138 0
Zindart Ltd. (ADR) 450,000 0 450,000 0 0 (1,912,143)
--------- ------------
$ 602,609 $ 29,720,522
========= ============
</TABLE>
/(1)/Adjusted for a reverse stock split.
Value Report | 57
<PAGE>
[LOGO]
Definitions
Please Note...
Defined below are the Alpha, Beta and R-Squared measurements presented for our
equity funds. These definitions were provided by Russell Analytics, a division
of the Frank Russell Company, highly regarded specialists in investment
information and statistics. When calculating these measurements for each
Heartland equity fund, we have substituted the Fund's benchmark index for a
"market return" as indicated in the presentation for each fund. For the Select
Value Fund, the measurements are based on weekly data from 12/6/99, when the
fund changed it's primary benchmark index to the S&P Barra Midcap Value Index
from the S&P 500 Stock Index in connection with a change in its investment
policies, using 31 weekly data points from 12/10/99 through 6/30/00. For the
Value Plus and Value Funds, the measurements are based on monthly data for the
3-year period ended 6/30/00.
Alpha is a measure of a portfolio's return in excess of the market return, both
adjusted for risk. It is a measure of the manager's contribution to performance
due to security selection. A positive Alpha indicates that the portfolio
outperformed the market on a risk-adjusted basis, and a negative Alpha indicates
the portfolio did worse than the market.
Beta is a measure of the sensitivity of a portfolio's rate of return against
those of the market. A Beta greater than 1.00 indicates volatility greater than
that of the market.
R-Squared is a measure that indicates the extent to which fluctuations in
portfolio returns are correlated with those of the general market. An R-Squared
of .75 indicates that 75% of the fluctuation in a portfolio's return is
explained by the fluctuation of the market.
Other Definitions
Bond Buyer 40 Index is composed of 40 actively traded general obligations and
revenue issues rated A or better having at least 19 years remaining to maturity,
a first call date between 7 and 16 years and at least one call at par before
redemption.
The Dow Jones Industrial Average is computed by summing the prices of the stocks
of 30 companies and then dividing that total by an adjusted value--one which has
been adjusted over the years to account for the effects of stock splits on the
prices of the 30 companies.
Heartland Customized Short-Term Bond Index is an equally-weighted index
developed by Heartland Advisors, Inc., consisting of equal allocations of the
Merrill Lynch High Yield, U.S. Corporate, Cash Pay, 1-3 Year BBB Rated, and B
Rated indexes, respectively.
Lehman Brothers Municipal 1-3 Year Non-Investment Grade Index is an unmanaged
index and includes issues which have a maximum credit rating of Ba1, were issued
as part of an offering of at least $20 million, have an amount outstanding of at
least $3 million, have a maturity of 1-3 years, and were issued after December
31,1990.
Lehman Brothers Municipal Non-Investment Grade Index includes issues which have
a maximum credit rating of Ba1, were issued as part of an offering of at least
$20 million, have an amount outstanding of at least $3 million, have a maturity
of at least one year, and were issued after December 31,1990.
Lehman Intermediate Term Treasury Index is an unmanaged index of all Treasury
securities issued by the U.S. Government with maturities of greater than one
year but less than 10 years and at least $100 million in outstanding issuance.
58 | Semi Annual: July 1, 2000
<PAGE>
Lehman 20 Year Municipal Bond Index consists of bonds having a minimum credit
rating of at least Baa, and outstanding par value of at least $3 million, and
issued as part of a transaction of at least $50 million.
Lipper General U.S. Government Fund Index is an equally weighted index, adjusted
for capital gains and income dividends, of the largest qualifying funds in the
investment objective, consisting of 30 funds. Qualifying funds generally consist
of those that invest at least 65% of their assets in U.S. government agency
issues.
Lipper High Yield Municipal Debt Fund Category is an equally weighted
performance index, adjusted for capital gains distributions and income dividends
of the largest qualifying funds in the investment objective, consisting of 10
funds. Qualifying funds generally consist of those that invest at least 50% of
their assets in lower rated municipal debt issues.
The Lipper Large-Cap Growth Index measures the performance of large-cap funds
with above-average price-to-earnings ratios, price-to-book ratios, and three-
year earnings growth figures as compared to the U.S. diversified large-cap funds
universe average.
The Lipper Large-Cap Value Index measures the performance of large-cap funds
with below-average price-to-earnings ratios, price-to-book ratios, and three-
year earnings growth figures as compared to the U.S. diversified large-cap funds
universe average.
The Lipper Mid-Cap Growth Index measures the performance of mid-cap funds with
above-average price-to-earnings ratios, price-to-book ratios, and three-year
earnings growth figures as compared to the U.S. diversified large-cap funds
universe average.
The Lipper Mid-Cap Value Index measures the performance of mid-cap funds with
below-average price-to-earnings ratios, price-to-book ratios, and three-year
earnings growth figures as compared to the U.S. diversified large-cap funds
universe average.
Lipper Other States Municipal Debt Funds Category is an equally weighted
performance index, adjusted for capital gains distributions and income
dividends, of the largest qualifying funds in the investment objective,
consisting of 30 funds. Qualifying funds generally consist of those that limit
their assets to those securities that are exempt from taxation in a specified
state (double tax-exempt) or city (triple tax-exempt).
Lipper Small-Cap Value Fund Index is an equally weighted performance index,
adjusted for capital gains distributions and income dividends of the largest
qualifying funds in the investment objective, consisting of 30 funds. Qualifying
funds generally consist of those that invest at least 75% of their equity assets
in companies with market capitalizations below 250% of the dollar weighted
median of the S&P Small Cap 600 Index and that seek long-term capital growth by
investing in companies that are considered to be undervalued.
Merrill Lynch High Yield, U.S. Corporate, Cash Pay, BB Rated, 1-3 Year Index is
a market capitalization weighted index including U.S. Domestic and Yankee, cash
pay, high-yield bonds. Qualifying bonds must have at least $100 million par
amount outstanding, and a remaining term to maturity greater than or equal to
one year, but less than three years. The quality range is BB3-BB1 based on the
composite rating of Moody's and S&P. Structured-Note Issues, DIBs (deferred
interest bonds), and PIKs (pay in kind bonds) are excluded.
Morningstar Municipal Bond Single State Long-Term Category consists of single-
state funds with an average duration of more than seven years or an average
maturity of more than 12 years.
Value Report | 59
<PAGE>
Morningstar Municipal Bond Short-Term Category consists of funds with an average
duration of less than 4.5 years or an average maturity of less than 5 years.
The NASDAQ Composite Index includes all stocks listed on the NASDAQ Stock
Market.
Morningstar Small Value Category consists of funds that have a relative P/E
Style Box Score + relative P/B Style Box Score of less than 1.75. Median market
cap is less than the top 20% of the 5,000 largest domestic stocks in
Morningstar's equity database.
Price/Book Ratio of a company is calculated by dividing the market price of its
stock by the company's per-share book value.
Price/Cash Flow represents the amount an investor is willing to pay for a dollar
generated from a particular company's operations. It shows the ability of a
business to generate cash and acts as a gauge of liquidity and solvency.
Price/Earnings Ratio of a stock is calculated by dividing the current price of
the stock by its trailing 12 months' earnings per share.
Russell 2000 Growth Index measures the performance of those Russell 2000
companies with a higher price-to-book ratios and higher forecasted growth
values.
Russell 2000 Index is an unmanaged index of stocks considered representative of
the small cap market.
Russell 2000 Value Index measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth values.
S&P 500 Index is an unmanaged index of 500 stocks representing major U.S.
industries.
S&P Barra Midcap Value Index is an unmanaged index of companies within the S&P
Midcap 400 Index that have the lowest price-to-book ratios within the lower 50
percentile of market capitalizations.
The S&P 400 Index includes stocks in the middle capitalization range, excluding
mid-cap stocks already included in the S&P 500 Index.
The S&P 600 Index consists of 600 small-cap domestic stocks.
60 | Semi Annual: July 1, 2000
<PAGE>
The Heartland Family of Funds
Select Value Fund
Value Plus Fund
Value Fund
Taxable Short Duration Municipal Fund
Short Duration High-Yield Municipal Fund
High-Yield Municipal Bond Fund
Wisconsin Tax Free Fund
(Wisconsin residents only)
[LOGO] Heartland Funds
----------------------
AMERICA'S VALUE INVESTOR'
Individual Investors:
1.800.HEARTLN (1.800.432.7856)
Financial Advisors:
Financial Advisor Services: 1.800.442.6391
www.heartlandfunds.com
Heartland Advisors, Inc.
789 N. Water St., Milwaukee, WI 53202
Distributor, Member SIPC.
The performance data quoted represents past performance. Investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Statements regarding particular securities are not recommendations to buy or
sell the securities discussed, but rather illustrations of our value investment
strategy. Such statements represent the portfolio manager's views when made and
are subject to change at any time based on market and other considerations.
Income from the Wisconsin Tax Free Fund may be subject to alternative minimum
tax and income from the Short Duration High-Yield Municipal Fund and the High-
Yield Municipal Bond Fund may be subject to state, local and alternative minimum
tax.
This material may only be used when preceded or accompanied by a prospectus for
the Fund(s) listed on the front cover.
