THE MONITOR FUNDS
ANNUAL REPORT TO SHAREHOLDERS
MONEY MARKET FUNDS
Trust Shares and Investment Shares
The Monitor Money Market Fund
The Monitor Ohio Municipal Money Market Fund
The Monitor U.S. Treasury Money Market Fund
EQUITY FUNDS
Trust Shares and Investment Shares
The Monitor Growth Fund
Trust Shares
The Monitor Income Equity Fund
INCOME FUNDS
Trust Shares and Investment Shares
The Monitor Ohio Tax-Free Fund
The Monitor Fixed Income Securities Fund
The Monitor Mortgage Securities Fund
Trust Shares
The Monitor Short/Intermediate Fixed Income Securities Fund
December 31, 1994
[Logo]
Investment Manager
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Message from the Investment Manager
Dear Shareholder:
I am pleased to present the December 31, 1994 Annual Report to Shareholders of
The Monitor Funds (the "Trust").
Investors in both common stocks and fixed income securities experienced an
extremely difficult investment environment during 1994. In fact, 1994 was the
worst bond market since 1927. Equities fared better, but by no means well. The
Standard & Poor's 500 Index* recorded a 1.3% positive total return. But the
NASDAQ Index* was down 2.2%, and the Dow Transportation and Utility indices*
fell 17.4% and 20.8%, respectively. Nearly 72% of the New York Stock Exchange
listed issues finished down for 1994.
Given the six increases in the Federal Funds rate by the Federal Reserve Board
and the sharpest relative increase in interest rates since the decade of the
1920s, it is easy to understand, though not necessarily to appreciate, these
negative market performances. Especially hard hit were high yielding securities,
such as public utility common shares; bonds, particularly those of long
duration; and mortgage-backed securities. Many investment vehicles, including
some of The Monitor Funds, which had compiled successful investment records over
longer periods and in more stable interest rate environments, found 1994 to be
very disappointing.
The market for mortgage-backed securities, including the derivatives of
mortgage-backed securities created by Federal agencies, was a one trillion three
hundred billion dollar market. The opening of 1994 saw an absolute collapse in
the organized market for such securities followed by what can perhaps best be
described as a panic. A gradual rebuilding of that market has been underway
since, continuing into the early part of 1995. We believe that this market has
stabilized and is experiencing a gradual recovery on a relative basis. This
process can be expected to be a long-term proposition, which will be influenced
importantly by intermediate to long-term interest rate movement.
In 1995, we believe the economy will continue to grow at a healthy but slower
pace than that of 1994. Short-term rates may increase as a result of Federal
Reserve Board action. However, we believe that longer term interest rates may
remain more stable. If this scenario occurs, price erosion on longer term fixed
income obligations should be relatively modest, and current yields could prove
fairly attractive for income-oriented investors.
Predicting equity price action is even more difficult. Several traditional
measures make common stocks appear historically expensive, even after poor
performance in 1994. Low yields and high price-to-earnings ratios are of
concern. Timing equity markets is not an easy task, however.
I hope that you will take the time to review the Management Discussion and
Analysis portion of this report. A comprehensive portfolio manager's analysis
and graph comparison are presented for each fluctuating net asset value fund in
the Trust. The graphs illustrate the path of your investment compared with
standard indices and/or averages. The portfolio managers' discussions provide a
summation of the year's performance, along with our outlooks and planned
strategies for managing The Monitor Funds for 1995. I would further recommend
your attention to the "Notes to Portfolios of Investments" section which appears
on page 30 of the report. Often, these footnotes go unnoticed. However, they may
provide a clarification of the terms utilized throughout the report and a
clearer description of the securities used in the portfolios.
The complete Financial Statements for each of The Monitor Funds, including their
Portfolio of Investments, can be found on the following pages.
On behalf of The Monitor Funds, I welcome new shareholders. It is our continuing
objective to provide quality investment management services.
Norman A. Jacobs
President and C.E.O.
The Huntington Trust Company, N.A.
Investment Manager
Columbus, Ohio
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*These indices are unmanaged.
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The Monitor Funds
ANNUAL REPORT FOR FISCAL YEAR ENDED DECEMBER 31, 1994
MANAGEMENT DISCUSSION AND ANALYSIS
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THE MONITOR GROWTH FUND
The Monitor Growth Fund (the "Growth Fund") was established in 1989 to
provide the opportunity for long-term capital appreciation through
investments in equity securities. Current income is only a secondary
consideration in the selection of securities. Total return for the Trust
Shares of the Growth Fund, with dividends reinvested, was 2.28% for 1994*.
The total return for the Investment Shares of the Growth Fund was (2.00%)*.
The broader market, as measured by the Standard & Poor's 500 Index**, was
up 1.31% with dividends reinvested. This index and other measurements of
market returns do not reflect the significant decline witnessed in
individual securities last year. Of declining stocks, almost 40% of the New
York Stock Exchange issues and 60% of NASDAQ issues were down more than 20%
from their twelve month highs. Needless to say, a fund's comparative
performance was enhanced by side-stepping a majority of these
disappointments.
The surprising rise in interest rates was a major factor in these
declines. Value stocks have been market leaders since the end of 1991;
however, growth stocks are becoming more attractive on a price/earnings
ratio basis when compared to value stocks. Growth stocks tend to perform
well during periods of stable interest rates and economic activity. After
1994's interest rate rise, we hope to see the dawning of economic and
interest rate stability.
The Growth Fund has taken a slightly more aggressive posture in its
stock selection process for the past eighteen months. We have searched for
smaller, more under-owned companies with the potential for vigorous
earnings growth. Cardinal Health, M.A. Hannah, and Media General are some
of the fruits of this labor. Along the way, we continue to come across a
few old friends in the large capitalization arena that we believe are
deemed suitable for purchase because of special situations. American
Brands, Conrail, and Colgate Palmolive fall into this category.
The most positive attribute of the Growth Fund in 1994 was its use of
technology stocks. Motorola, Compaq Computer, Microsoft, and Hewlett
Packard all contributed gains in excess of 25% (over 60% in Compaq's case).
Technology company prospects and earnings are often quite volatile, and we
are pleased to have made such well-timed acquisitions.
The Growth Fund will continue its mission of purchasing securities of
companies that we believe have an ability to post above-average earnings
and dividend increases. We hope the investment environment grows more
conducive towards awarding these companies the multiple of earnings they
deserve.
Philip H. Farrington
James Gibboney, Jr.
Thomas J. Sauer
Portfolio Managers
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
** This index is unmanaged.
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THE MONITOR GROWTH FUND
GROWTH OF $10,000 INVESTED IN THE MONITOR GROWTH FUND--INVESTMENT AND TRUST
SHARES
The graph below illustrates the hypothetical investment of $10,000 in
The Monitor Growth Fund-- Investment Shares (the "Fund") from May 1, 1991
(start of performance) to December 31, 1994, compared to the Standard &
Poor's Composite Price 500 Index ("S&P 500")+, and The Monitor Growth
Fund--Trust Shares (the "Fund") from July 3, 1989 (start of performance) to
December 31, 1994, compared to the Standard & Poor's Composite Stock Price
500 Index ("S&P 500")+.
Graphic representation omitted. See Appendix A.
AVERAGE ANNUAL TOTAL RETURN*** FOR THE PERIOD ENDED DECEMBER 31, 1994
INVESTMENT SHARES
1 Year................................................... (2.00%)
Start of Performance (May 1, 1991)........................ 4.83%
TRUST SHARES
1 Year.................................................... 2.28%
5 Year.................................................... 7.67%
Start of Performance (July 3, 1989)....................... 7.85%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY
MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT
OBLIGATIONS OF OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales load of 4.00% ($10,000 investment minus $400
sales load = $9,600). The Fund's performance assumes the reinvestment of
all dividends and distributions. The S&P 500 has been adjusted to
reflect reinvestment of dividends on securities in the index.
***Total return quoted reflects all applicable sales loads and contingent
deferred sales charges.
+The S&P 500 is not adjusted to reflect sales loads, expenses, or other
fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. This index is unmanaged.
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The Monitor Funds
THE MONITOR INCOME EQUITY FUND
The Monitor Income Equity Fund (the "Income Equity Fund") continues to
strive to provide its shareholders with a current income that is
substantially above that of the broad market averages, together with modest
growth of that income and some capital appreciation. In an attempt to
pursue this current yield, the Income Equity Fund was positioned in such
major groups as utilities, energy, financial and basic industries, many of
which were negatively impacted in the rising interest rate environment that
characterized 1994. Most transactions implemented during the year's final
quarter were to both offset capital gains realized earlier in the year, so
as to minimize any capital gains tax liabilities, and attempt to increase
the Income Equity Fund's current yield. As such, the Income Equity Fund had
been able to maintain a 30-day yield, as of December 31, 1994, of 4.40% as
compared to the Standard & Poor's Composite Stock Price 500 Index's (the
"S&P 500")* income yield of 2.7%.
For all of 1994, the Income Equity Fund provided a total return of
(1.82%)** which slightly lagged the S&P 500's return, but which was
slightly better than the average fund in its peer group, according to
Morningstar, Inc. While the Income Equity Fund's relatively high current
yield resulted in a generally less volatile net asset value pattern through
the year, its heavy emphasis on a high dividend payout was primarily
responsible for that total return deficiency versus the broad market
averages, as high yielding sectors of the market were punished by rising
interest rates and the prospect of re-igniting inflation. The Income Equity
Fund is best suited for those investors seeking less volatile exposure to
the stock market, relatively high current income yield, and some modest
appreciation in both income and capital.
James M. Buskirk
(Chief Investment Officer, The Huntington Trust Company, N.A.)
Portfolio Manager
* This index is unmanaged.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
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THE MONITOR INCOME EQUITY FUND
GROWTH OF $10,000 INVESTED IN THE MONITOR INCOME EQUITY FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in
The Monitor Income Equity Fund-- Trust Shares (the "Fund") from July 3,
1989 (start of performance) to December 31, 1994, compared to the Standard
& Poor's Composite Stock Price 500 Index ("S&P 500")+.
Graphic representation omitted. See Appendix B.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED DECEMBER 31, 1994
1 Year................................................... (1.82%)
5 Year.................................................... 5.61%
Start of Performance (July 3, 1989)....................... 5.73%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY
MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT
OBLIGATIONS OF OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
+The S&P 500 is not adjusted to reflect sales loads, expenses, or other
fees that the Securities and Exchange Commission requires to be reflected
in the Fund's performance. This index is unmanaged.
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The Monitor Funds
THE MONITOR OHIO TAX-FREE FUND
The Monitor Ohio Tax-Free Fund (the "Ohio Tax-Free Fund") was
established in 1988 to provide investors with the opportunity for current
income exempt from federal income tax and Ohio personal income taxes.* The
Ohio Tax-Free Fund seeks to achieve its objective by investing in
intermediate maturities of municipal securities exempt from both federal
and Ohio income taxes.
From our perspective, 1994 was a contrast from 1993 when interest
rates declined, new issuances increased and the overall market was
positive. In 1994, the municipal bond market suffered as investors watched
the value of their bonds plummet due to interest rate increases throughout
the year. New issuances declined by 44% during the year, and the market was
rocked by the bankruptcy and subsequent default on a bond issue by Orange
County, California.
For the fiscal year ended December 31, 1994, the total return of the
Lehman Brothers State General Obligation Index** was (4.75%), while the
total return for the Trust Shares of the Ohio Tax-Free Fund was (2.57%)***.
The total return for the Investment Shares of the Ohio Tax-Free Fund was
(4.78%)***. The advantage to the Ohio Tax-Free Fund was due to a shorter
average portfolio maturity. The Ohio Tax-Free Fund is restricted to an
average portfolio maturity of four to seven years and a limit with respect
to any particular security of fifteen years. Under normal market
conditions, at least 80% of Ohio Tax-Free Fund's net assets will be
invested in Ohio tax-exempt securities. The Lehman Brothers State General
Obligation Index, however, is made up of bonds of issuers from throughout
the United States which have a much longer average portfolio maturity. The
Lehman Brothers State 5 Year General Obligation Index**, which has a
shorter average portfolio maturity than the Ohio Tax-Free Fund, had a total
return for the fiscal year ended December 31, 1994 of (1.38%).
William G. Doughty
Portfolio Manager
* Income may be subject to federal alternative minimum tax.
** This index is unmanaged.
*** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
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THE MONITOR OHIO TAX-FREE FUND
GROWTH OF $10,000 INVESTED IN THE MONITOR OHIO TAX-FREE FUND--INVESTMENT
AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in
The Monitor Ohio Tax-Free Fund--Investment Shares (the "Fund") from May 1,
1991 (start of performance) to December 31, 1994, compared to the Lehman
Brothers State General Obligation Index ("LBSGO")+, Lehman Brothers 5 Year
General Obligation Index ("LB5GO")+, Lipper Short Municipal Debt Fund
Average ("LSMD")++, and the Lipper Intermediate Municipal Debt Fund Average
("LIMD")++ and The Monitor Ohio Tax-Free Fund--Trust Shares (the "Fund")
from
October 18, 1988 (start of performance) to December 31, 1994, compared to
the Lehman Brothers State General Obligation Index ("LBSGO")+, Lehman
Brothers 5 Year General Obligation Index ("LB5GO")+, Lipper Short Municipal
Debt Fund Average ("LSMD")++, and the Lipper Intermediate Muncipal Debt
Fund Average ("LIMD")++.
Graphic representation omitted. See Appendix C.
AVERAGE ANNUAL TOTAL RETURN**** FOR THE PERIOD ENDED DECEMBER 31, 1994
INVESTMENT SHARES
1 Year................................................... (4.78%)
Start of Performance (May 1, 1991)........................ 3.86%
TRUST SHARES
1 Year................................................... (2.57%)
5 Year.................................................... 5.29%
Start of Performance (October 18, 1988)................... 5.55%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY
MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT
OBLIGATIONS OF OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBSGO and the LB5GO have been adjusted to reflect
reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after
deducting the current sales load of 2.00% effective 2/1/93 ($10,000
investment minus $200 sales load = $9,800). The Fund's performance
assumes the reinvestment of all dividends and distributions. The LBSGO
and the LB5GO have been adjusted to reflect reinvestment of dividends
on securities in the index.
***Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales load of 4.00% ($10,000 investment minus
$400 sales load = $9,600). The Fund's performance assumes the
reinvestment of all dividends and distributions. The LBSGO and the
LB5GO have been adjusted to reflect reinvestment of dividends on
securities in the index.
****Total return quoted reflects all applicable sales loads and contingent
deferred sales charges.
+The LBSGO and the LB5GO are not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission
requires to be reflected in the Fund's performance. These indices are
unmanaged.
++The LSMD and the LIMD each represent the average of the total returns
reported by all of the mutual funds designated by Lipper Analytical
Services, Inc. as falling into the respective categories, and are not
adjusted to reflect any sales loads. However, these total returns are
reported net of expenses or other fees that the Securities and Exchange
Commission requires to be reflected in a fund's performance.
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The Monitor Funds
THE MONITOR FIXED INCOME SECURITIES FUND
For relative performance purposes, The Monitor Fixed Income Securities
Fund (the "Fixed Income Securities Fund") compares its performance to the
Lehman Brothers Government/Corporate Bond Index (the "Index")*. There are
many similarities between the Index and the Fixed Income Securities Fund,
but there are some meaningful differences as well. The main differences are
that the Index has a longer average maturity, slightly longer duration,
includes lower credit quality corporate obligations, and, of course, incurs
no fees or operating costs.
The biggest component of the total return of any bond fund is its
duration in relation to the movement of interest rates. The Fixed Income
Securities Fund had a duration of approximately five years at December 31,
1994. That means for an instantaneous rise or fall of one full percentage
point in interest rates, the Fixed Income Securities Fund would sustain a
five percentage point loss or gain, respectively, in its net asset value.
Therefore, knowing the duration of the Fixed Income Securities Fund, or any
other bond fund, and being mindful of the movement of interest rates over a
given time frame, will go a long way towards explaining the performance of
that fund.
Interest rates on the five year U.S. Treasury Note began 1994 at about
5% and ended the year at around 7.5% for an increase of approximately two
and one half percentage points. Therefore, the Fixed Income Securities Fund
sustained about an 11% decrease in its net asset value for the year. That
principal return, coupled with the coupon/income return of around 7.0%,
minus the operating expenses of the Fixed Income Securities Fund, will
closely approximate the total rate of return.
The Fixed Income Securities Fund's total rate of return of (4.62%) for
Trust Shares** slightly underperformed the Index's return of (3.50%). The
total return for the Investment Shares of the Fixed Income Securities Fund
was (6.79%)**. If the somewhat longer maturity of the Index, its inclusion
of lower rated corporate obligations (securities which the Fixed Income
Securities Fund is not permitted to purchase) and the "cost free" nature of
an index are factored in, we believe that the Fixed Income Securities
Fund's return was quite competitive.
Stephen M. Geis
Portfolio Manager
* This index is unmanaged.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
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THE MONITOR FIXED INCOME SECURITIES FUND
GROWTH OF $10,000 INVESTED IN THE MONITOR FIXED INCOME SECURITIES
FUND--INVESTMENT AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in
The Monitor Fixed Income Securities Fund-- Investment Shares (the "Fund")
from May 1, 1991 (start of performance) to December 31, 1994, compared to
the Lehman Brothers Government/Corporate Bond Index ("LBGCB")+ and the
Lipper Intermediate Investment Grade Debt Fund Average ("LIIGDF")++ and The
Monitor Fixed Income Securities Fund--Trust Shares (the "Fund") from July
3, 1989 (start of performance) to December 31, 1994, compared to the Lehman
Brothers Government/Corporate Bond Index ("LBGCB")+ and the Lipper
Intermediate Investment Grade Debt Fund Average ("LIIGDF")++.
Graphic representation omitted. See Appendix D.
AVERAGE ANNUAL TOTAL RETURN**** FOR THE PERIOD ENDED DECEMBER 31, 1994
INVESTMENT SHARES
1 Year................................................... (6.79%)
Start of Performance (May 1, 1991)........................ 5.64%
TRUST SHARES
1 Year................................................... (4.62%)
5 Year.................................................... 6.95%
Start of Performance (July 3, 1989)....................... 6.91%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY
MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT
OBLIGATIONS OF OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBGCB has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after
deducting the current sales load of 2.00% effective
2/1/93 ($10,000 investment minus $200 sales load = $9,800). The Fund's
performance assumes the reinvestment of all dividends and
distributions. The LBGCB has been adjusted to reflect reinvestment
of dividends on securities in the index.
***Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales load of 4.00% ($10,000 investment minus
$400 sales load = $9,600). The Fund's performance assumes the
reinvestment of all dividends and distributions. The LBGCB has been
adjusted to reflect reinvestment of dividends on securities in the
index.
****Total return quoted reflects all applicable sales loads and contingent
deferred sales charges.
+The LBGCB is not adjusted to reflect sales loads, expenses, or other
fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. This index is unmanaged.
++The LIIGDF represents the average of the total returns reported by
all of the mutual funds designated by Lipper Analytical Services,
Inc. as falling into the respective categories, and are not adjusted
to reflect any sales loads. However, these total returns are reported
net of expenses or other fees that the Securities and Exchange
Commission requires to be reflected in a fund's performance.
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The Monitor Funds
THE MONITOR MORTGAGE SECURITIES FUND
After experiencing favorable performance in the past, The Monitor
Mortgage Securities Fund's (the "Mortgage Securities Fund") performance in
1994 was very disappointing. Total return for Trust Shares was (24.59%)*
compared against the Merrill Lynch 3-5 year U.S. Treasury Index** return of
(2.74%). The total return for Investment Shares of the Mortgage Securities
Fund was (26.19%)*. Aggressive tightening moves on the part of the Federal
Reserve Board resulted in the sharpest rise in interest rates on a
percentage basis in recorded research, which began in 1927. As interest
rates rose sharply, mortgage refinancing activity slowed dramatically,
causing the prices of mortgage-backed derivative securities in the
portfolio to drop.
Looking ahead, we have sought to reposition the portfolio to dampen
volatility of net asset value while retaining recovery potential and income
earning capability. All securities in the Mortgage Securities Fund are
issued or guaranteed by the U.S. government, its agencies, or
instrumentalities or are rated AAA by Standard & Poor's Ratings Group***.
As of December 31, 1994, 96% of the securities in the portfolio have a par
value that is guaranteed at maturity by the U.S. government or an agency
thereof. Over time, as the mortgages backing these securities are paid in
full, they will return 100% of their face value, provided the Mortgage
Securities Fund holds them to maturity. We continue to believe the
portfolio holds attractive value for investors with long-term objectives
and diversified portfolios. Our outlook for 1995 is for a moderation in the
extreme volatility experienced in 1994. While further tightening by the
Federal Reserve Board appears likely, we believe that the longer term
outlook for high quality fixed income securities is attractive,
particularly from current levels of income and the prospects for continued
low levels of inflation. We believe the portfolio is well positioned to
benefit from that outlook.
Worth Bruntjen
Marijo Goldstein
Marcy Winson
(Piper Capital Management, Sub-Advisers)
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
** This index is unmanaged.
*** Ratings are subject to change.
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THE MONITOR MORTGAGE SECURITIES FUND
GROWTH OF $10,000 INVESTED IN THE MONITOR MORTGAGE SECURITIES
FUND--INVESTMENT AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in
The Monitor Mortgage Securities Fund--Investment Shares and Trust Shares
(the "Fund") from June 2, 1992 (start of performance) to December 31, 1994,
compared to the Merrill Lynch 3-5 Year U.S. Treasury Index ("ML3-5YUST")+
and the Lipper U.S. Mortgage Fund Average ("LUSMF")++.
Graphic representation omitted. See Appendix E.
AVERAGE ANNUAL TOTAL RETURN*** FOR THE PERIOD ENDED DECEMBER 31, 1994
INVESTMENT SHARES
1 Year.................................................. (26.19%)
Start of Performance (June 2, 1992)...................... (3.73%)
TRUST SHARES
1 Year.................................................. (24.59%)
Start of Performance (June 2, 1992)...................... (2.78%)
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY
MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT
OBLIGATIONS OF OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The ML3-5YUST has been adjusted to reflect reinvestment
of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after
deducting the maximum sales load of 2.00% ($10,000 investment minus $200
sales load = $9,800). The Fund's performance assumes the reinvestment of
all dividends and distributions. The ML3-5YUST has been adjusted to
reflect reinvestment of dividends on securities in the index.
***Total return quoted reflects all applicable sales loads and contingent
deferred sales charges.
+The ML3-5YUST is not adjusted to reflect sales loads, expenses, or other
fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. This index is unmanaged.
++The LUSMF represents the average of the total returns reported by all
of the mutual funds designated by Lipper Analytical Services, Inc. as
falling into the respective categories, and are not adjusted to
reflect any sales loads. However, these total returns are reported net
of expenses or other fees that the Securities and Exchange Commission
requires to be reflected in a fund's performance.
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The Monitor Funds
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
For relative performance purposes, we compare The Monitor
Short/Intermediate Fixed Income Securities Fund (the "Short/Intermediate
Fund") to both the Lehman Intermediate Government/Corporate Index (the
"Lehman Index") and to the Merrill Lynch 1-5 Year Composite Treasury Index
(the "Merrill Lynch Index")*. The Short/Intermediate Fund "fits" between
these two indices as far as average maturity and duration are concerned,
but the Lehman Index contains lower credit quality corporate obligations
and, of course, incurs no fees or operating costs.
The biggest component of the total return of any bond fund is its
duration in relation to the movement of interest rates. The
Short/Intermediate Fund had a duration of approximately three years through
1994. That means for an instantaneous rise or fall of one full percentage
point in interest rates, the Short/Intermediate Fund would sustain a three
percentage point loss or gain, respectively, in its net asset value.
Therefore, knowing the duration of the Short/Intermediate Fund, or any
other bond fund, and being mindful of the movement of interest rates over a
given time frame, will go a long way towards explaining the performance of
that fund.
Interest rates on the three year U.S. Treasury Note began 1994 at 4.5%
and ended the year at around 7.5%, for an increase of about three full
percentage points. Therefore, the Short/Intermediate Fund sustained about a
7.0% decrease in its net asset value for the year. That principal return,
coupled with the coupon/ income return of around 7.0%, minus the operating
expenses of the Short/Intermediate Fund, will closely approximate the total
rate of return.
The Short/Intermediate Fund's total rate of return of (0.98%)** fell
between the Merrill Lynch Index return of (0.6%) and the Lehman Index
return of (1.90%). Given that the Merrill Lynch Index is shorter than the
Short/Intermediate Fund and the Lehman Index is longer, the returns are
consistent. The inclusion of lower rated corporate obligations that the
Short/Intermediate Fund is not permitted to purchase and the "cost free"
nature of an index are additional factors that account for the difference
in performance between the Short/ Intermediate Fund and the indices.
Factoring it all together, we believe that the Short/Intermediate Fund's
return was quite competitive.
Stephen M. Geis
Portfolio Manager
* These indices are unmanaged.
** Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
- --------------------------------------------------------------------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
GROWTH OF $10,000 INVESTED IN THE MONITOR SHORT/INTERMEDIATE FIXED INCOME
SECURITIES FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in
The Monitor Short/Intermediate Fixed Income Securities Fund--Trust Shares
(the "Fund") from July 3, 1989 (start of performance) to December 31, 1994,
compared to the Lehman Intermediate Government/Corporate Index ("LIGC")+
and the Merrill Lynch 1-5 Year Composite Treasury Index ("ML1-5YCT")+ and
the Lipper Short-Term Investment Grade Debt Fund Average ("LSTIGDF")++.
Graphic representation omitted. See Appendix F.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED DECEMBER 31, 1994
1 Year.............................................. (0.98%)
5 Year............................................... 6.83%
Start of Performance (July 3, 1989).................. 6.94%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY
MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT
OBLIGATIONS OF OR GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
*The Fund's performance assumes the reinvestment of all dividends
and distributions. The LIGC and the ML1-5YCT have been adjusted
to reflect reinvestment of dividends on securities in the
indices.
+The LIGC and ML1-5YCT are not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission
requires to be reflected in the Fund's performance. These indices
are unmanaged.
++The LSTIGDF represents the average of the total returns reported by
all of the mutual funds designated by Lipper Analytical Services, Inc.
as falling into the respective categories, and are not adjusted to
reflect any sales loads. However, the total returns are reported net
of expenses or other fees that the Securities and Exchange Commission
requires to be reflected in a fund's performance.
- --------------------------------------------------------------------------------
Portfolios of Investments
------------------------------------------------
THE MONITOR MONEY MARKET FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
(A) COMMERCIAL PAPER 87.6%
- ----------------------------------------------------------------------
BANKING 13.6%
$5,000,000 AIG Funding, 6.15%, 3/31/95 $4,923,979
10,000,000 Corporate Asset Funding,
5.45%-5.53%,
1/9/95-1/27/95 9,973,975
5,000,000 Dresdner U.S. Finance,
5.77%,
2/17/95 4,962,335
5,000,000 National City Credit Corp.,
5.42%, 1/13/95 4,990,967
10,000,000 New Center Asset, 5.72%,
1/9/95 9,987,289
5,000,000 PNC Funding Corp., 5.76%,
2/14/95 4,964,800
5,000,000 Toronto Dominion Holdings,
5.90%, 3/1/95 4,951,653
- ----------------------------------------------------------------------
44,754,998
- ----------------------------------------------------------------------
BANKING & FINANCE 7.6%
5,000,000 Ford Motor Credit Co.,
5.38%,
1/12/95 4,991,780
10,000,000 General Electric Capital
Corp., 5.608%-6.278%,
2/2/95-4/6/95 10,000,000
5,000,000 Goldman, Sachs & Co.,
5.48%,
1/17/95 4,987,822
5,000,000 Xerox Credit Corp., 5.72%,
2/1/95 4,975,372
- ----------------------------------------------------------------------
24,954,974
- ----------------------------------------------------------------------
BASIC INDUSTRY 6.0%
10,000,000 Hanson Finance (U.K.) PLC,
5.62%-6.05%,
2/8/95-3/2/95 9,919,922
5,000,000 Siemens Corp., 6.13%,
3/7/95 4,944,660
5,000,000 Wool International, 6.15%,
3/16/95 4,936,792
- ----------------------------------------------------------------------
19,801,374
- ----------------------------------------------------------------------
BEVERAGE & TOBACCO 3.0%
10,000,000 Seagram (Joseph E.) & Sons,
Inc., 6.18%-6.25%,
3/6/95-3/9/95 9,886,907
- ----------------------------------------------------------------------
BUSINESS SERVICES 1.5%
5,000,000 Dun & Bradstreet Corp.,
5.45%,
1/24/95 4,982,590
- ----------------------------------------------------------------------
CHEMICALS 4.5%
5,000,000 du Pont (E.I.) de Nemours,
5.90%, 2/9/95 4,968,042
5,000,000 Monsanto Co., 6.00%,
2/27/95 4,952,500
5,000,000 U.S. Borax & Chemical
Corp., 6.10%, 3/1/95 4,950,014
- ----------------------------------------------------------------------
14,870,556
- ----------------------------------------------------------------------
ELECTRONICS 1.5%
5,000,000 Sharp Electronics Corp.,
5.52%,
2/10/95 4,969,333
- ----------------------------------------------------------------------
FINANCE-COMMERCIAL 6.1%
5,000,000 AT & T Capital Corp.,
5.68%,
1/31/95 4,976,333
10,000,000 Cargill Financial Services
Corp., 5.40%-6.15%
1/6/95-3/20/95 9,929,625
5,000,000 Pitney Bowes Credit Corp.,
5.55%, 1/5/95 4,996,917
- ----------------------------------------------------------------------
19,902,875
- ----------------------------------------------------------------------
FOOD & BEVERAGE 6.1%
5,000,000 Golden Peanut Co., 5.84%,
2/22/95 4,957,822
10,000,000 Heinz (H.J.) Co.,
5.54%-5.72%,
1/5/95-1/17/95 9,984,211
5,000,000 PepsiCo, 5.625%, 2/3/95 4,974,219
- ----------------------------------------------------------------------
19,916,252
- ----------------------------------------------------------------------
INSURANCE 4.7%
5,000,000 A I Credit Corp., 5.45%,
1/19/95 4,986,375
10,424,000 Metlife Funding, Inc.,
5.42%-5.73%,
1/23/95-2/15/95 10,368,590
- ----------------------------------------------------------------------
15,354,965
- ----------------------------------------------------------------------
- -------------------------------------------------------
- -------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
LEISURE/AMUSEMENT 1.5%
$5,000,000 Disney (Walt) Co., 5.35%,
1/12/95 $4,991,826
- ----------------------------------------------------------------------
OFFICE EQUIPMENT 1.5%
5,000,000 Xerox Corp., 6.20%, 2/28/95 4,950,055
- ----------------------------------------------------------------------
OIL & GAS 3.0%
10,000,000 Atlantic Richfield,
5.39%-5.50%,
1/10/95-2/7/95 9,964,999
- ----------------------------------------------------------------------
PAPER/PRODUCTS 1.5%
5,000,000 Kimberly-Clark, 5.88%,
1/20/95 4,984,483
- ----------------------------------------------------------------------
PHARMACEUTICALS & HEALTHCARE 4.5%
10,000,000 Lilly (Eli) & Co.,
5.92%-6.09%,
2/16/95-3/21/95 9,895,357
5,000,000 Smithkline Beecham, 5.40%,
1/11/95 4,992,500
- ----------------------------------------------------------------------
14,887,857
- ----------------------------------------------------------------------
PRINTING & PUBLISHING 3.0%
10,000,000 McGraw-Hill, Inc.,
5.33%-5.80%,
1/18/95-2/21/95 9,946,332
- ----------------------------------------------------------------------
RETAIL STORES 1.5%
5,000,000 May Department Stores,
5.43%,
1/17/95 4,987,933
- ----------------------------------------------------------------------
SOVEREIGN GOVERNMENT 3.0%
5,000,000 Canadian Wheat Board,
5.35%,
1/25/95 4,982,167
5,000,000 Province of Alberta,
Canada, 5.76%, 2/17/95 4,962,400
- ----------------------------------------------------------------------
9,944,567
- ----------------------------------------------------------------------
TELECOMMUNICATIONS 6.0%
10,000,000 American Telephone &
Telegraph Co.,
6.10%-6.15%, 3/8/95-
3/23/95 9,875,000
5,000,000 Bellsouth Capital Funding,
5.80%, 3/1/95 4,952,472
5,000,000 U.S. West Communications,
5.82%, 2/6/95 4,970,900
- ----------------------------------------------------------------------
19,798,372
- ----------------------------------------------------------------------
TOBACCO 3.0%
10,000,000 Philip Morris Cos., Inc.,
5.46%-5.73%,
1/26/95-2/16/95 9,944,433
- ----------------------------------------------------------------------
UTILITIES 4.5%
5,000,000 Pacific Dunlap Ltd., 6.18%,
3/27/95 4,927,042
5,000,000 Pacific Gas & Electric,
6.07%,
2/13/95 4,963,749
5,000,000 Southern California Edison,
5.34%, 1/4/95 4,997,775
- ----------------------------------------------------------------------
14,888,566
- ----------------------------------------------------------------------
TOTAL COMMERCIAL PAPER 288,684,247
- ----------------------------------------------------------------------
GOVERNMENT AGENCY 1.5%
- ----------------------------------------------------------------------
5,000,000 Student Loan Marketing
Association, Weekly FRN 5,000,000
- ----------------------------------------------------------------------
(B) REPURCHASE AGREEMENT 11.2%
- ----------------------------------------------------------------------
37,111,300 Daiwa Securities America,
Inc., 5.85%, dated
12/30/94,
due 1/3/95 37,111,300
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $330,795,547(C)
- ----------------------------------------------------------------------
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
-----------------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES
99.4%
- ------------------------------------------------------------
NEW YORK 1.3%
- ------------------------------------------------------------
$1,000,000 New York City, NY,
Daily VRDNs GO UT
Bonds, (Series
B)/(FGIC SPA) A-1+ $1,000,000
- ------------------------------------------------------------
OHIO 95.5%
- ------------------------------------------------------------
1,000,000 Akron, OH, 5.25% GO LT
Bonds, Special
Assessment Note,
12/14/95 MIG1* 1,003,481
- ------------------------------------------------------------
500,000 Centerville, OH, 3.50%
BANs, 2/2/95 MIG1* 500,086
- ------------------------------------------------------------
2,000,000 Centerville, OH, Weekly
VRDNs Revenue Bonds,
(Bethany Lutheran
Village Project)/(PNC
Bank LOC) VMIG1 2,000,000
- ------------------------------------------------------------
1,300,000 Cincinnati, OH, Student
Loan Funding Corp.,
Weekly VRDNs Revenue
Bonds, (Series
1983A)/(Fuji Bank Ltd.
LOC) VMIG1 1,300,000
- ------------------------------------------------------------
3,333,000 Clermont County, OH,
Hospital Facilities,
Daily VRDNs Revenue
Bonds, (Mercy Health
Care System)/(Series
B)/(MBIA Insured) VMIG1 3,333,000
- ------------------------------------------------------------
3,500,000 Columbus, OH, Sewer
System Revenue
Refunding Bonds,
Weekly VRDNs (Series
1994)/(Columbus, OH
Sewer System Guaranty) A-1+ 3,500,000
- ------------------------------------------------------------
1,000,000 Cuyahoga County, OH,
4.25% Health Care
Facilities Revenue
Bonds, (Cleveland
Neighborhood)/(Series
A), 6/1/95 MIG1* 1,000,000
- ------------------------------------------------------------
1,400,000 Cuyahoga County, OH,
IDA Weekly VRDNs (The
Allen Group, Inc.
Project)/ (Dresdner
Bank A.G., LOC) VMIG1 1,400,000
- ------------------------------------------------------------
730,000 Cuyahoga County, OH,
IDR 3.25% Revenue
Bonds, (Fogg Centax II
Project)/ (Equitable
Federal Savings & Loan
LOC), 1/1/95 AA 729,139
- ------------------------------------------------------------
300,000 Delaware County, OH,
IDR Weekly VRDNs
Revenue Bonds,
(Radiation
Sterilizers)/(Wells
Fargo Bank LOC) VMIG1 300,000
- ------------------------------------------------------------
1,350,000 Dover, OH, 4.08% BANs,
9/14/95 MIG1* 1,350,155
- ------------------------------------------------------------
500,000 Elyria, OH, 4.15% BANs,
7/25/95 MIG1* 500,410
- ------------------------------------------------------------
1,240,000 Elyria, OH, 4.90% BANs,
10/18/95 MIG1* 1,242,471
- ------------------------------------------------------------
- -------------------------------------------------------
- -------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
- ------------------------------------------------------------
OHIO (CONTINUED)
- ------------------------------------------------------------
$1,600,000 Evandale, OH, IDR
Weekly VRDNs (Shaver
Real Estate,
Inc.)/(ABN AMRO Bank
LOC) P-1 $1,600,000
- ------------------------------------------------------------
2,000,000 Fairfield, OH, City
School District, 5.55%
GO UT BANs, 6/20/95 MIG1* 2,005,014
- ------------------------------------------------------------
800,000 Findlay, OH, Water
Revenue Refunding
Bonds, Weekly VRDNs
(Series 1984)/(Dai-
Ichi Kangyo LOC) A1 800,000
- ------------------------------------------------------------
500,000 Franklin County, OH,
Solid Waste
Facilities, 4.10% GO
LT BANs, (Series
8-94),
8/25/95 MIG1* 500,171
- ------------------------------------------------------------
1,300,000 Franklin County, OH,
Hospital Revenue
Bonds, Weekly VRDNs
(Childrens' Hospital
Project)/(Series
B)/(Bank One SPA) VMIG1 1,300,000
- ------------------------------------------------------------
1,450,000 Franklin County, OH,
IDR Daily VRDNs
(Columbus College Art
Project)/(Bank One
LOC) MIG1* 1,450,000
- ------------------------------------------------------------
1,500,000 Franklin County, OH,
EDR Weekly VRDNs
(Dominican
Sisters)/(Fifth Third
Bank LOC) VMIG1 1,500,000
- ------------------------------------------------------------
1,000,000 Highland Heights, OH,
5.65% GO LT BANs,
12/28/95 MIG1* 1,004,227
- ------------------------------------------------------------
2,000,000 Hilliard, OH, City
School District, 4.77%
BANs,
4/13/95 MIG1* 2,003,183
- ------------------------------------------------------------
1,000,000 Mahoning County, OH,
Healthcare Facilities
Revenue Bonds, Daily
VRDNs (Series 1992)/
(Copeland Oaks
Project)/ (Bank One
LOC) MIG1* 1,000,000
- ------------------------------------------------------------
1,200,000 Marion County, OH,
Hospital Revenue
Bonds, Daily VRDNs
(Pooled Lease
Program)/(Bank One
LOC) A1+ 1,200,000
- ------------------------------------------------------------
1,000,000 Morrow County, OH, IDR
Daily VRDNs (Field
Container
Corp.)/(American
National Bank and
Trust LOC) A-1 1,000,000
- ------------------------------------------------------------
2,200,000 Muskingham County, OH,
Hospital Facilities
Revenue, Weekly VRDNs
(Bethesda Care System
Project)/ (National
City Bank LOC) VMIG1 2,200,000
- ------------------------------------------------------------
1,000,000 North Olmsted, OH,
4.55% BANs, 7/20/95 MIG1* 1,001,874
- ------------------------------------------------------------
- --------------------------------------------------------------------------------
- -------------------------------------------------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
- -------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------
OHIO (CONTINUED)
- -------------------------------------------------------------
Ohio State Air Quality A-1+ $1,000,000
Development Authority,
$1,000,000 3.20% Revenue Bonds,
(Cincinnati Gas &
Electric)/ (J.P.
Morgan LOC), Mandatory
Tender 1/11/95
- -------------------------------------------------------------
Ohio State Air Quality A-1+ 1,000,000
1,000,000 Development Authority,
3.25% PCR (Cleveland
Electric)/(Series
B)/(FGIC Insured),
Mandatory Tender
1/11/95
- -------------------------------------------------------------
Ohio State Air Quality A-1+ 1,500,000
1,500,000 Development Authority,
3.40% PCR (Cleveland
Electric)/(Series
B)/(FGIC Insured),
Mandatory Tender
2/1/95
- -------------------------------------------------------------
Ohio State Air Quality A-1+ 1,300,000
1,300,000 Development Authority,
3.45% Revenue Bonds,
(Cincinnati Gas &
Electric)/ (J.P.
Morgan LOC), Mandatory
Tender 2/2/95
- -------------------------------------------------------------
Ohio State Air Quality A-1+ 2,000,000
2,000,000 Development Authority,
3.65% Revenue Bonds,
(Cincinnati Gas &
Electric)/ (Toronto
Dominion Bank LOC),
Mandatory Tender
2/7/95
- -------------------------------------------------------------
Ohio State Air Quality A-1+ 1,600,000
1,600,000 Development Authority,
Monthly VRDNs Revenue
Refunding Bonds, (The
Mead Corp.)/(Deutsche
Bank A.G. LOC)
- -------------------------------------------------------------
Ohio State P-1 3,000,000
3,000,000 Environmental
Improvement, Weekly
VRDNs Revenue
Refunding Bonds, (USX
Corp.)/(Sanwa Bank
Ltd. LOC)
- -------------------------------------------------------------
Ohio State Higher A-1+ 3,200,000
3,200,000 Educational Facilities
Commission, Daily
VRDNs Revenue Bonds,
(Oberlin College
Project)/ (Bank of
Tokyo Ltd. LOC)
- -------------------------------------------------------------
Ohio State University VMIG1 100,000
100,000 Revenue Bonds, Weekly
VRDNs (Series
1985B)/(National
Westminster Bank PLC
LOC)
- -------------------------------------------------------------
Ohio State University VMIG1 1,950,000
1,950,000 Revenue Bonds, Weekly
VRDNs (General
Receipts)/(Series
1992B)
- -------------------------------------------------------------
- -------------------------------------------------------
- -------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------
OHIO (CONTINUED)
- -------------------------------------------------------------
Ohio State University VMIG1 $150,000
Revenue Bonds, Weekly
VRDNs (General
$150,000 Receipts)/(Series
1986B)/(National
Westminster Bank PLC
LOC)
- -------------------------------------------------------------
Ohio State Water MIG1* 2,300,000
2,300,000 Development Authority,
Daily VRDNs Revenue
Refunding Bonds,
(American Honda
Finance)/ (Industrial
Bank of Japan Ltd.
LOC)
- -------------------------------------------------------------
Ohio State Water VMIG1 700,000
700,000 Development Authority,
Daily VRDNs Revenue
Refunding Bonds, (The
Mead Corp.)/(Series
1986B)/(Swiss Bank
Corp. LOC)
- -------------------------------------------------------------
Richland County, OH, MIG1* 501,157
500,000 4.85% GO LT BANs,
9/14/95
- -------------------------------------------------------------
Stark County, OH, 5.18% MIG1* 661,334
660,000 BANs, 12/6/95
- -------------------------------------------------------------
Stark County, OH, Sewer MIG1* 1,000,768
1,000,000 District Improvement,
4.13% BANs, (Series
3),
4/7/95
- -------------------------------------------------------------
Stow, OH, 3.83% GO MIG1* 799,472
800,000 BANs,
3/1/95
- -------------------------------------------------------------
Summit County, OH, IDR A-1+ 3,545,000
3,545,000 Weekly VRDNs
(Petrarca/
Cedarwood)/(Firemans
Insurance LOC)
- -------------------------------------------------------------
Talawanda, OH, Local SP-1 500,167
500,000 School District, 3.50%
BANs,
4/6/95
- -------------------------------------------------------------
Toledo, OH, City MIG1 500,376
500,000 Service Special
Assessment Notes,
4.15% Refunding BANs,
(Sumitomo Bank, Ltd.
LOC), 6/1/95
- -------------------------------------------------------------
1,400,000 Toledo-Lucas County,
OH, Port Authority,
3.65% Revenue
Refunding Bonds, (CSX
Transportation, Inc.
Project)/(Bank of Nova
Scotia LOC), Mandatory
Tender 1/5/95 A-1+ 1,400,000
- -------------------------------------------------------------
1,400,000 Toledo-Lucas County,
OH, Port Authority,
3.75% Revenue
Refunding Bonds, (CSX
Transportation, Inc.
Project)/(Bank of Nova
Scotia LOC), Mandatory
Tender 2/1/95 A-1+ 1,400,000
- -------------------------------------------------------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D)
- -------------------------------------------------------
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
- ----------------------------------------------------------------------
OHIO (CONTINUED)
- ----------------------------------------------------------------------
Toledo-Lucas County, OH, VMIG1 $1,890,000
Monthly VRDNs Revenue
$1,890,000 Refunding Bonds,
Convention Center &
Visitors Bureau, Inc.,
(Lucas County Convention
Center Project)/(Marine
Midland Bank LOC)
- ----------------------------------------------------------------------
University Heights City, MIG1* 500,182
500,000 OH, 4.20% GO LT BANs,
9/8/95
- ----------------------------------------------------------------------
University of Cincinnati, MIG1* 601,610
600,000 4.75% BANs, (General
Receipts),
8/30/95
- ----------------------------------------------------------------------
Warren County, OH, 4.50% GO MIG1* 340,295
340,000 BANs, (Deerfield Twp.),
9/22/95
- ----------------------------------------------------------------------
Warren County, OH, IDR P-1 1,000,000
1,000,000 Weekly VRDNs (Pioneer
Industrial Components)/
(Mitsubishi Bank Ltd. LOC)
- ----------------------------------------------------------------------
Willoughby, OH, 4.19% GO MIG1* 600,486
600,000 BANs, 8/16/95
- ----------------------------------------------------------------------
Wilmington, OH, 4.35% GO LT MIG1* 801,262
800,000 BANs, (Second Series),
7/11/95
- ----------------------------------------------------------------------
- -------------------------------------------------------
- -------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D)
- -------------------------------------------------------
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
- ----------------------------------------------------------------------
OHIO (CONTINUED)
- ----------------------------------------------------------------------
Wooster, OH, IDR Weekly VMIG1 $700,000
VRDNs Revenue Bonds, (The
Allen Group, Inc.)/
$700,000 (Dresdner Bank A.G. LOC)
- ----------------------------------------------------------------------
73,265,320
- ----------------------------------------------------------------------
OREGON 2.6%
- ----------------------------------------------------------------------
Port of Portland, OR, Daily VMIG1 2,000,000
VRDNs PCR (Reynolds Metals
2,000,000 Co.)/(Bank of Nova Scotia
LOC)
- ----------------------------------------------------------------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES 76,265,320
(AT AMORTIZED COST)
- ----------------------------------------------------------------------
OTHER 0.5%
- ----------------------------------------------------------------------
Nuveen Tax-Exempt Money NR 345,600
Market Fund, Inc. (at net
345,600 asset value)
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST AND VALUE) $76,610,920(C)
See Notes to Portfolios of Investments.
--------------------------
THE MONITOR U.S. TREASURY MONEY MARKET FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
- ----------------------------------------------------------------------
U.S. TREASURY BILLS 45.3%
$5,000,000 1/19/95 $4,988,237
- ----------------------------------------------------------------------
5,000,000 1/26/95 4,982,726
- ----------------------------------------------------------------------
10,000,000 2/2/95 9,955,556
- ----------------------------------------------------------------------
7,000,000 2/9/95 6,963,486
- ----------------------------------------------------------------------
7,000,000 2/16/95 6,955,009
- ----------------------------------------------------------------------
7,000,000 2/23/95 6,949,863
- ----------------------------------------------------------------------
5,000,000 3/2/95 4,952,292
- ----------------------------------------------------------------------
7,000,000 3/2/95 6,940,616
- ----------------------------------------------------------------------
5,000,000 3/9/95 4,952,542
- ----------------------------------------------------------------------
5,000,000 3/16/95 4,943,164
- ----------------------------------------------------------------------
5,000,000 3/16/95 4,942,958
- ----------------------------------------------------------------------
10,000,000 3/16/95 9,882,628
- ----------------------------------------------------------------------
7,000,000 3/23/95 6,914,005
- ----------------------------------------------------------------------
5,000,000 3/23/95 4,938,913
- ----------------------------------------------------------------------
10,000,000 3/30/95 9,868,856
- ----------------------------------------------------------------------
5,000,000 5/18/95 4,890,210
- ----------------------------------------------------------------------
5,000,000 6/1/95 4,874,796
- ----------------------------------------------------------------------
5,000,000 6/1/95 4,871,440
- ----------------------------------------------------------------------
7,000,000 6/22/95 6,792,979
- ----------------------------------------------------------------------
- -------------------------------------------------------
- -------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
U.S. TREASURY BILLS (CONTINUED)
$5,000,000 6/22/95 $4,853,561
- ----------------------------------------------------------------------
TOTAL U.S. TREASURY BILLS 125,413,837
- ----------------------------------------------------------------------
(E) REPURCHASE AGREEMENTS 55.1%
- ----------------------------------------------------------------------
51,531,100 Daiwa Securities America,
Inc., 5.83%-5.85%, dated
12/30/94 due 1/3/95 51,531,100
12,000,000 Morgan Stanley & Co., Inc.,
5.65% dated 12/22/94 due
1/3/95 12,000,000
25,000,000 Prudential Securities,
Inc., 5.75% dated
12/27/94 due 1/3/95 25,000,000
12,000,000 Dean Witter Reynolds, Inc.,
5.65% dated 12/27/94 due
1/4/95 12,000,000
13,000,000 First Boston Corp., 5.60%
dated
12/27/94 due 1/5/95 13,000,000
13,000,000 Lehman Brothers Inc., 5.70%
dated
12/29/94 due 1/5/95 13,000,000
13,000,000 Nomura Securities
International, Inc.,
5.75% dated 12/28/94 due
1/5/95 13,000,000
13,000,000 Goldman, Sachs & Co., 5.70%
dated 12/30/94 due 1/6/95 13,000,000
- ----------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 152,531,100
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $277,944,937(C)
- ----------------------------------------------------------------------
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
------------------------------------------------------
THE MONITOR GROWTH FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------
- -------------------------------------------------------
COMMON STOCKS 96.4%
- ----------------------------------------------------------------------
CAPITAL GOODS 2.7%
61,000 Boeing Co. $2,851,750
- ----------------------------------------------------------------------
CHEMICALS 6.6%
41,800 duPont (EI) deNemours & Co. 2,351,250
17,600 Great Lakes Chemical Corp. 1,003,200
130,000 Hanna (M.A.) Co. 3,087,500
19,000 Potash Corp. 646,000
- ----------------------------------------------------------------------
7,087,950
- ----------------------------------------------------------------------
CONSUMER DURABLES 0.7%
25,000 Ford Motor Co. 700,000
- ----------------------------------------------------------------------
CONSUMER GOODS & SERVICES 3.2%
120,000 Media General Cl. A 3,405,000
- ----------------------------------------------------------------------
CONSUMER NON-DURABLES 4.3%
55,000 American Brands 2,062,500
40,000 Colgate-Palmolive Co. 2,535,000
- ----------------------------------------------------------------------
4,597,500
- ----------------------------------------------------------------------
CONSUMER PRODUCTS 12.3%
110,000 American Greetings Corp. 2,970,000
60,000 International Flavors &
Fragrances 2,775,000
105,000 Mattel, Inc. 2,638,125
112,000 Newell Co. 2,352,000
41,900 Philip Morris Cos., Inc. 2,409,250
- ----------------------------------------------------------------------
13,144,375
- ----------------------------------------------------------------------
ELECTRICAL EQUIPMENT 5.9%
33,400 Emerson Electric Co. 2,087,500
42,800 General Electric Co. 2,182,800
38,650 Hubbell, Inc. 2,058,113
- ----------------------------------------------------------------------
6,328,413
- ----------------------------------------------------------------------
ELECTRONICS 2.9%
130,000 Premier Industrial Corp. 3,071,250
- ----------------------------------------------------------------------
FINANCIAL 8.7%
22,200 American International Group 2,175,600
70,000 Cincinnati Financial Corp. 3,605,000
71,000 CoreStates Financial Corp. 1,846,000
28,800 J.P. Morgan & Co., Inc. 1,612,800
- ----------------------------------------------------------------------
9,239,400
- ----------------------------------------------------------------------
FOOD & BEVERAGE 5.1%
76,600 McDonald's Corp. 2,240,550
88,500 Pepsico, Inc. 3,208,125
- ----------------------------------------------------------------------
5,448,675
- ----------------------------------------------------------------------
FOOD DISTRIBUTOR/SERVICE SYSTEM 2.4%
100,000 Sysco Corp. 2,575,000
- ----------------------------------------------------------------------
- -------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
HEALTHCARE 8.7%
94,000 Abbott Laboratories $3,066,750
15,000 Cardinal Health, Inc. 695,625
50,000 Medtronic, Inc. 2,781,250
34,900 Pfizer, Inc. 2,696,025
- ----------------------------------------------------------------------
9,239,650
- ----------------------------------------------------------------------
INDUSTRIAL PRODUCTS 8.2%
55,000 (f)Crown Cork & Seal Co.,
Inc. 2,076,250
62,000 Illinois Tool Works, Inc. 2,712,500
38,000 Parker-Hannifin Corp. 1,729,000
60,400 PPG Industries, Inc. 2,242,350
- ----------------------------------------------------------------------
8,760,100
- ----------------------------------------------------------------------
PAPER 1.8%
90,000 Sonoco Products Co. 1,968,750
- ----------------------------------------------------------------------
PRODUCER MANUFACTURING 3.4%
60,000 Nordson Corp. 3,600,000
- ----------------------------------------------------------------------
RETAIL 3.8%
57,100 (f)Toys R Us, Inc. 1,741,550
110,000 Wal-Mart Stores, Inc. 2,337,500
- ----------------------------------------------------------------------
4,079,050
- ----------------------------------------------------------------------
TECHNOLOGY 12.9%
50,000 Automatic Data Processing,
Inc. 2,925,000
30,000 (f)Compaq Computer Corp. 1,185,000
27,900 Hewlett-Packard Co. 2,786,513
10,000 Intel Corp. 638,750
25,000 (f)Microsoft Corp. 1,528,125
53,400 Motorola, Inc. 3,090,525
51,100 Pitney Bowes, Inc. 1,622,425
- ----------------------------------------------------------------------
13,776,338
- ----------------------------------------------------------------------
TELECOMMUNICATIONS 1.6%
35,000 American Telephone &
Telegraph Co. 1,758,750
- ----------------------------------------------------------------------
TRANSPORTATION 1.2%
25,000 Conrail, Inc. 1,262,500
- ----------------------------------------------------------------------
TOTAL COMMON STOCKS (IDENTIFIED COST,
$86,764,464) 102,894,451
- ----------------------------------------------------------------------
(G)COMMERCIAL PAPER 4.2%
- ----------------------------------------------------------------------
FINANCE-COMMERCIAL 4.2%
$4,458,437 General Electric Capital
Corp., 4.25%, 1/3/95 (at
amortized cost) 4,458,437
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST
$91,222,901) $107,352,888
- ----------------------------------------------------------------------
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
-----------------------------------------------
THE MONITOR INCOME EQUITY FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------
- -------------------------------------------------------
COMMON STOCKS 77.6%
- ----------------------------------------------------------------------
BANKING & FINANCE 8.6%
40,000 Chemical Bank $1,435,000
120,000 CoreStates Financial Corp. 3,120,000
100,000 National City Corp. 2,587,500
100,000 Ohio Casualty Corp. 2,825,000
- ----------------------------------------------------------------------
9,967,500
- ----------------------------------------------------------------------
BASIC INDUSTRY 6.2%
25,000 duPont (EI) deNemours & Co. 1,406,250
34,000 Monsanto Co. 2,397,000
90,000 PPG Industries, Inc. 3,341,250
- ----------------------------------------------------------------------
7,144,500
- ----------------------------------------------------------------------
BUSINESS SERVICES 5.5%
65,000 Dun & Bradstreet Corp. 3,575,000
140,000 John H. Harland Co. 2,800,000
- ----------------------------------------------------------------------
6,375,000
- ----------------------------------------------------------------------
CAPITAL GOODS 4.3%
105,000 Worthington Industries, Inc. 2,100,000
200,000 Zero Corp. 2,800,000
- ----------------------------------------------------------------------
4,900,000
- ----------------------------------------------------------------------
CONSUMER DURABLES 2.4%
100,000 Ford Motor Co. 2,800,000
- ----------------------------------------------------------------------
CONSUMER NON-DURABLES 14.4%
30,000 American Brands 1,125,000
40,000 American Home Products Corp. 2,510,000
35,000 Bristol-Meyers Squibb Corp. 2,025,625
55,000 Clorox Co. 3,238,125
135,000 Hanson PLC 2,430,000
50,000 Philip Morris Cos., Inc. 2,875,000
80,000 Upjohn Co. 2,460,000
- ----------------------------------------------------------------------
16,663,750
- ----------------------------------------------------------------------
ELECTRICAL EQUIPMENT 2.7%
60,000 General Electric Co. 3,060,000
- ----------------------------------------------------------------------
ENERGY 10.8%
46,000 Chevron 2,052,750
32,000 Exxon Corp. 1,944,000
35,000 Halliburton 1,159,375
70,000 Repsol S.A. 1,907,500
25,000 Royal Dutch Petroleum Co. 2,687,500
45,000 Texaco, Inc. 2,694,375
- ----------------------------------------------------------------------
12,445,500
- ----------------------------------------------------------------------
- -------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS 2.3%
50,000 Association Estates Realty $1,050,000
65,500 Simon Property Group 1,588,375
- ----------------------------------------------------------------------
2,638,375
- ----------------------------------------------------------------------
RETAIL TRADE 2.3%
60,000 J.C. Penney Co. 2,677,500
- ----------------------------------------------------------------------
TECHNOLOGY 3.4%
40,000 Xerox Corp. 3,960,000
- ----------------------------------------------------------------------
TRANSPORTATION 1.6%
30,000 Norfolk Southern 1,818,750
- ----------------------------------------------------------------------
UTILITIES 13.1%
55,000 Bell Atlantic Corp. 2,736,250
100,000 DPL, Inc. 2,050,000
65,000 GTE Corp. 1,974,375
80,000 IPALCO Enterprises 2,400,000
45,000 Pacific Telesis Group 1,282,500
90,000 Peoples Energy Corp. 2,351,250
90,000 Wisconsin Energy Corp. 2,328,750
- ----------------------------------------------------------------------
15,123,125
- ----------------------------------------------------------------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$82,281,124) 89,574,000
- ----------------------------------------------------------------------
PREFERRED STOCKS 4.1%
300,000 RJR Nabisco (Series C) 1,800,000
20,000 Sears Roebuck & Co., Conv.
Pfd., Series A 1,112,500
48,000 Tandy Corp., Conv. Pfd.,
Series P, 7.25% 1,812,000
- ----------------------------------------------------------------------
TOTAL PREFERRED STOCKS (IDENTIFIED COST
$2,544,700) 4,724,500
- ----------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS 17.6%
- ----------------------------------------------------------------------
U.S. TREASURY NOTES 16.0%
$9,000,000 5.50%,4/30/96 8,771,489
9,000,000 6.75%, 6/30/99 8,632,080
1,000,000 7.75%, 2/15/2001 995,880
- ----------------------------------------------------------------------
18,399,449
- ----------------------------------------------------------------------
U.S. TREASURY BOND 1.6%
1,700,000 8.875%, 8/15/2017 1,853,051
- ----------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(IDENTIFIED COST $20,741,791) 20,252,500
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST
$105,567,615) $114,551,000
- ----------------------------------------------------------------------
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
- ----------------------------------------------------
THE MONITOR OHIO TAX-FREE FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES 89.0%
$215,000 Alliance, OH, City
School District,
6.20%, (AMBAC
Insured), 12/1/2001 Aaa $221,061
- -------------------------------------------------------------
250,000 Archbold, OH, Local
School District,
6.80%, (MBIA
Insured)/(Prerefunded
12/1/99 @102) Aaa 265,065
- -------------------------------------------------------------
290,000 Aurora, OH, 7.35% (BIG
Insured), 12/1/2000 Aaa 315,697
- -------------------------------------------------------------
280,000 Avon Lake, OH, 5.10%
Water System Mortgage
Revenue Bonds,
10/1/2005 Aaa 254,425
- -------------------------------------------------------------
250,000 Beachwood, OH, City
School District,
6.60%, 12/1/2004 Aa 261,102
- -------------------------------------------------------------
215,000 Bedford, OH, City
School District
(Energy Conservation
Improvement), 5.35%,
6/15/2002 A 204,581
- -------------------------------------------------------------
200,000 Bedford, OH, City
School District
(Energy Conservation
Improvement), 5.40%,
6/15/2003 A 188,832
- -------------------------------------------------------------
205,000 Berea, OH, 6.95%,
12/1/98 Aa 214,598
- -------------------------------------------------------------
250,000 Blue Ash, OH, 6.50%,
11/1/99 Aa 259,815
- -------------------------------------------------------------
230,000 Bowling Green, OH, City
School, 6.90%, 12/1/98 A1 240,451
- -------------------------------------------------------------
500,000 Butler County, OH,
4.80% Sewer System
Revenue Bonds (AMBAC
Insured), 12/1/98 Aaa 484,545
- -------------------------------------------------------------
250,000 Butler County, OH,
Hospital Facilities,
5.25%,
11/15/2000 AAA 242,013
- -------------------------------------------------------------
250,000 Centerville, OH, City
School District,
6.625%, 12/1/99 A 259,127
- -------------------------------------------------------------
730,000 Cincinnati, OH, 4.50%,
12/1/97 AA+ 712,071
- -------------------------------------------------------------
250,000 Cincinnati, OH, 6.75%,
12/1/2001 AA+ 266,135
- -------------------------------------------------------------
250,000 Cincinnati, OH, 7.00%,
10/1/97 AA+ 260,975
- -------------------------------------------------------------
425,000 Cincinnati, OH, City
School District,
5.40%, 6/1/96 A+ 425,552
- -------------------------------------------------------------
250,000 Cincinnati, OH, Street
Improvement, 7.00%,
12/1/99 Aa 266,278
- -------------------------------------------------------------
250,000 Clermont County, OH,
4.40% Sewer Revenue
Bonds (AMBAC Insured),
12/1/2002 Aaa 218,882
- -------------------------------------------------------------
500,000 Cleveland Heights, OH,
5.60%, 12/1/2002 Aa 491,520
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$500,000 Cleveland Heights, OH,
6.75% (FGIC Insured),
12/1/97 Aaa $519,185
- -------------------------------------------------------------
500,000 Cleveland, OH, 5.90%
(MBIA Insured),
11/15/2001 AAA 503,040
- -------------------------------------------------------------
200,000 Cleveland, OH, 6.40% GO
Bonds (AMBAC Insured),
10/1/2002 Aaa 207,508
- -------------------------------------------------------------
200,000 Cleveland, OH, Regional
Transit Authority,
4.85% GO LT Capital
Improvement Bonds,
12/1/98 A 193,688
- -------------------------------------------------------------
500,000 Clyde, OH, Temp. Water
System, 5.60%
Improvement Revenue
Bonds (Series 1994),
5/1/97 MIG1 502,665
- -------------------------------------------------------------
750,000 Columbus, OH, 4.35%
(Series C), 9/15/98 Aa1 714,143
- -------------------------------------------------------------
270,000 Columbus, OH, 5.35%,
5/15/2003 Aa1 260,105
- -------------------------------------------------------------
500,000 Columbus, OH, 6.30%,
1/1/2005 Aa1 513,460
- -------------------------------------------------------------
250,000 Columbus, OH, 6.30%,
4/15/2003 Aa1 257,010
- -------------------------------------------------------------
250,000 Columbus, OH, 7.00%
Sewer Revenue Bonds
(Prerefunded, 3/1/2000
@102) Aa1 267,178
- -------------------------------------------------------------
250,000 Columbus, OH, 7.00%,
5/1/96 Aa1 256,373
- -------------------------------------------------------------
500,000 Columbus, OH, 7.30%
Sewer Revenue Bonds,
6/1/96 A1 513,160
- -------------------------------------------------------------
250,000 Columbus, OH, 7.50%
Sewer Revenue Bonds
(Prerefunded, 6/1/97
@102) Aaa 262,280
- -------------------------------------------------------------
250,000 Columbus, OH, City
School District, 5.05%
(FGIC Insured),
12/1/2002 AAA 235,342
- -------------------------------------------------------------
250,000 Copley Fairlawn, OH,
5.15% UT GO Bonds,
Fairlawn City School
District, 12/1/2001 A1 239,872
- -------------------------------------------------------------
500,000 Cuyahoga County, OH,
4.50% GO Bonds,
10/1/2000 Aa 449,050
- -------------------------------------------------------------
500,000 Cuyahoga County, OH,
4.90%, 10/1/2004 Aa 436,595
- -------------------------------------------------------------
500,000 Cuyahoga County, OH,
6.90% (Prerefunded,
10/1/2003 @102) Aa 534,630
- -------------------------------------------------------------
250,000 Cuyahoga County, OH,
7.00% (Prerefunded,
10/1/2000 @102) Aa1 266,250
- -------------------------------------------------------------
400,000 Delaware, OH, 5.40%,
11/1/2002 A 383,932
- -------------------------------------------------------------
250,000 Dublin, OH, City School
District, 6.05% (FGIC
Insured), 12/1/2003 Aaa 251,695
- -------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
- ----------------------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$250,000 Dublin, OH, City School
District, 6.15% (FGIC
Insured), 12/1/2004 Aaa $252,198
- -------------------------------------------------------------
200,000 Dublin, OH, Local
School District, 6.80%
(AMBAC Insured)/(ETM),
12/1/97 Aaa 207,720
- -------------------------------------------------------------
250,000 Eastlake, OH, 5.00% GO
Bonds, 12/1/2004 A1 225,087
- -------------------------------------------------------------
250,000 Euclid, OH, 6.40%,
12/1/2004 Aa 257,855
- -------------------------------------------------------------
420,000 Euclid, OH, 7.00%,
12/1/2002 Aa 446,678
- -------------------------------------------------------------
250,000 Findlay, OH, 5.20% GO
Sewer System Bonds,
7/1/2006 A1 227,165
- -------------------------------------------------------------
270,000 Findlay, OH, 6.70%,
8/1/97 A1 278,473
- -------------------------------------------------------------
500,000 Franklin County, OH,
5.05% Hospital Revenue
Bonds (Doctors
Hospital), 12/1/99 A 472,280
- -------------------------------------------------------------
500,000 Franklin County, OH,
5.05% Refunding
Revenue Bonds,
12/1/2005 Aaa 455,960
- -------------------------------------------------------------
285,000 Franklin County, OH,
5.50% Revenue
Anticipation Bonds
(Convention
Authority)/ (MBIA
Insured), 12/1/2003 Aaa 275,635
- -------------------------------------------------------------
305,000 Franklin County, OH,
6.00% GO Bonds,
9/1/2006 AAA 299,458
- -------------------------------------------------------------
250,000 Franklin County, OH,
6.40% (Convention
Authority)/ (MBIA
Insured), 12/1/96 Aaa 255,025
- -------------------------------------------------------------
500,000 Franklin County, OH,
6.40% Hospital Revenue
Bonds (Series
1991A)/(Childrens
Hospital), 11/1/2006 Aa 496,665
- -------------------------------------------------------------
250,000 Franklin County, OH,
6.50% Hospital Revenue
Bonds (Series
1992A)/(Childrens
Hospital), 5/1/2007 Aa 250,330
- -------------------------------------------------------------
550,000 Franklin County, OH,
7.20% Hospital Revenue
Bonds (Holy Cross
Health Systems),
6/1/2000 A1 576,224
- -------------------------------------------------------------
515,000 Gahanna, OH, 5.25%,
6/1/2002 A1 493,010
- -------------------------------------------------------------
580,000 Gahanna, OH, 5.55%,
6/1/2005 A1 553,917
- -------------------------------------------------------------
250,000 Gahanna, OH, 6.40%,
6/1/2002 A1 262,350
- -------------------------------------------------------------
250,000 Grandview Heights, OH,
7.10%, 12/1/2006 A1 263,987
- -------------------------------------------------------------
250,000 Hamilton County, OH,
4.60% Hospital Revenue
Bonds (MBIA Insured),
5/15/2000 AAA 230,865
- -------------------------------------------------------------
500,000 Hamilton County, OH,
4.90% Hospital Revenue
Bonds (Series
1993D)/(FGIC Insured),
5/15/2003 Aaa 458,005
- -------------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$300,000 Hamilton County, OH,
5.95%, 12/1/2002 AA $304,134
- -------------------------------------------------------------
250,000 Hamilton County, OH,
6.30% Sewer Revenue
Bonds,
12/1/2001 A1 258,315
- -------------------------------------------------------------
500,000 Hamilton County, OH,
6.40% Sewer System
Revenue Bonds,
12/1/2003 A1 517,370
- -------------------------------------------------------------
500,000 Hamilton County, OH,
4.70%, 12/1/2004 Aa 440,285
- -------------------------------------------------------------
500,000 Hamilton County, OH,
Hospital Facilities,
5.90% (Episcopal
Retirement
Home)/(Fifth Third
Bank LOC), 1/1/99 Aa1 500,880
- -------------------------------------------------------------
500,000 Hamilton County, OH,
Hospital Facilities,
6.50% (Christ
Hospital)/(FGIC
Insured),
1/1/2002 Aaa 514,975
- -------------------------------------------------------------
500,000 Hamilton County, OH,
Hospital Facilities,
6.75% (Children's
Hospital)/(BIG
Insured),
5/15/2002 Aaa 523,840
- -------------------------------------------------------------
1,000,000 Hamilton County, OH,
Improvement Museum,
7.125% (Prerefunded,
12/1/2001 @102) Aaa 1,072,720
- -------------------------------------------------------------
250,000 Hamilton, OH, 4.40%
(MBIA Insured),
10/15/2003 Aaa 214,940
- -------------------------------------------------------------
390,000 Hamilton, OH, 5.10%
Electric System
Mortgage Revenue Bonds
(Series A)/(FGIC
Insured), 10/15/99 Aaa 380,277
- -------------------------------------------------------------
230,000 Hilliard, OH, 6.75%,
12/1/98 A1 239,336
- -------------------------------------------------------------
250,000 Hilliard, OH, School
District, 5.00% (AMBAC
Insured), 12/1/2003 AAA 231,125
- -------------------------------------------------------------
245,000 Indian Hill Water
Works, OH, 4.90%
Revenue Bonds,
6/1/2005 A+ 217,869
- -------------------------------------------------------------
585,000 Kettering, OH, 5.05% GO
Bonds, 12/1/2004 Aa 531,238
- -------------------------------------------------------------
345,000 Kettering, OH, 6.70%,
12/1/97 Aa 357,165
- -------------------------------------------------------------
255,000 Lakewood, OH, 5.05%,
12/1/2005 Aa 231,973
- -------------------------------------------------------------
535,000 Lakewood, OH, 5.85%,
12/1/2002 Aa 536,648
- -------------------------------------------------------------
250,000 Lakuta, OH, GO UT,
6.40% School
Improvement Bonds
(AMBAC Insured),
12/1/2000 AAA 259,302
- -------------------------------------------------------------
500,000 Lorain County Water
Authority, 4.95%
(AMBAC Insured),
10/1/2004 AAA 449,640
- -------------------------------------------------------------
275,000 Lyndhurst, OH, 7.40%,
12/1/2000 Aa 294,115
- -------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
- ----------------------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$200,000 Marysville, OH, Exempt
Village School, 6.90%
(AMBAC Insured),
12/1/2000 Aaa $211,896
- -------------------------------------------------------------
300,000 Massillon, OH, City
School District, UT,
4.80% GO Revenue Bonds
(AMBAC Insured),
12/1/2008 AAA 259,029
- -------------------------------------------------------------
250,000 Mentor, OH, 6.70%,
12/1/2003 A 261,042
- -------------------------------------------------------------
265,000 Mentor, OH, 6.80%,
12/1/98 A 276,122
- -------------------------------------------------------------
500,000 Miami University, OH,
5.40%, 12/1/2005 A+ 460,380
- -------------------------------------------------------------
200,000 Miami Valley Regional
Transit Authority, GO
UT, 5.10% Revenue
Bonds, 12/1/2001 A 189,594
- -------------------------------------------------------------
500,000 Montgomery County, OH,
6.10% (Series 1992A)/
(Miami Valley
Hospital)/ (AMBAC
Insured),
11/15/2002 Aaa 510,280
- -------------------------------------------------------------
500,000 Montgomery County, OH,
6.45% (Prerefunded,
9/1/2004 @Par) Aa 518,260
- -------------------------------------------------------------
500,000 Montgomery County, OH,
6.50% (Series A)/
(Prerefunded, 9/1/2005
@Par) Aa 519,345
- -------------------------------------------------------------
500,000 Montgomery County, OH,
6.60% Revenue Bonds
(Refuse Disposal)/FGIC
Insured), Mandatory
Tender 11/1/2010 Aaa 511,185
- -------------------------------------------------------------
270,000 Montgomery, OH, 5.60%
GO Bonds, 12/1/2005 Aa 261,004
- -------------------------------------------------------------
285,000 Montgomery, OH, 5.75%
GO Bonds, 12/1/2006 Aa 277,559
- -------------------------------------------------------------
500,000 Northeast, OH, Regional
Sewer District, 6.40%
(Wastewater
Improvement)/ (AMBAC
Insured),
11/15/2003 Aaa 518,080
- -------------------------------------------------------------
500,000 Ohio Municipal Electric
Generation, 4.75%
(Agency Joint Venture
5)/(AMBAC Insured),
2/15/2000 AAA 472,540
- -------------------------------------------------------------
250,000 Ohio State Building
Authority (DAS Data
Center), 7.10%
(Prerefunded), 10/1/98
@102) A 265,077
- -------------------------------------------------------------
250,000 Ohio State Building
Authority (DAS Data
Center)/(ETM), 7.00%,
10/1/97 A+ 260,195
- -------------------------------------------------------------
500,000 Ohio State Building
Authority, 6.20%,
6/1/2004 A 506,170
- -------------------------------------------------------------
500,000 Ohio State Building
Authority, 6.50%,
10/1/2004 A 515,735
- -------------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$125,000 Ohio State Building
Authority, 7.25%
(Prerefunded,
3/1/2001 @102) A $134,785
- -------------------------------------------------------------
125,000 Ohio State Building
Authority, 7.25%
(Prerefunded,
8/1/2001 @102) A 135,115
- -------------------------------------------------------------
300,000 Ohio State Economic
Development, 6.60%
(Sysco Food Service),
12/1/2003 A 305,841
- -------------------------------------------------------------
250,000 Ohio State Higher
Education Facility
Commission, 7.10%
(Xavier
University)/(MBIA
Insured), 11/1/98 Aaa 263,630
- -------------------------------------------------------------
250,000 Ohio State Higher
Education Facility,
4.50% (Oberlin
College), 10/1/99 AA 233,598
- -------------------------------------------------------------
250,000 Ohio State Higher
Education Facility,
5.00% (Oberlin
College), 10/1/2002 Aa 233,337
- -------------------------------------------------------------
555,000 Ohio State Higher
Education Facility,
4.90% (Ohio Northern
University)/ (Connie
Lee Insured),
5/1/2003 AAA 504,162
- -------------------------------------------------------------
250,000 Ohio State Higher
Education Facility,
5.35% (John Carroll
University),
10/1/2005 A 228,885
- -------------------------------------------------------------
200,000 Ohio State Higher
Education Facility,
6.05% (Bank One LOC),
12/1/98 AA 204,240
- -------------------------------------------------------------
250,000 Ohio State Higher
Education Facility,
6.10% (University of
Dayton)/(FGIC
Insured), 12/1/2001 Aaa 255,777
- -------------------------------------------------------------
225,000 Ohio State Higher
Education Facility,
6.70% (University of
Dayton)/(FGIC
Insured), 12/1/96 Aaa 230,738
- -------------------------------------------------------------
275,000 Ohio State Highway,
6.70%, 5/15/97 Aa 284,133
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission
Higher Education,
5.70% (AMBAC Insured),
11/1/99 AAA 250,500
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission
Higher Education,
6.90%, 6/1/98 A 259,335
- -------------------------------------------------------------
500,000 Ohio State Public
Facilities Commission
Mental Health, 6.75%
(MBIA Insured),
12/01/2001 Aaa 528,170
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission
Mental Health, 7.30%,
6/1/2001 A 267,658
- -------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
- ----------------------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$400,000 Ohio State Public
Facilities Commission,
4.40%,
12/1/96 A $390,948
- -------------------------------------------------------------
695,000 Ohio State Public
Facilities Commission,
5.30% (FSA Insured),
12/1/97 Aaa 692,185
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission,
6.50% (MBIA Insured),
6/1/2000 Aaa 260,373
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission,
6.50% (MBIA Insured),
6/1/97 Aaa 256,593
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission,
7.125%,
5/1/2001 A 263,273
- -------------------------------------------------------------
250,000 Ohio State Public
Facilities Commission,
7.20%,
12/1/99 A 262,123
- -------------------------------------------------------------
500,000 Ohio State University,
4.85%, 12/1/98 A1 484,390
- -------------------------------------------------------------
500,000 Ohio State University,
5.30%, 12/1/2001 A1 483,960
- -------------------------------------------------------------
250,000 Ohio State Water
Development Authority
Revenue, 7.10%
(Prerefunded, 6/1/99
@102) A 266,118
- -------------------------------------------------------------
250,000 Ohio State Water
Development Authority
Revenue, 7.15% (AMBAC
Insured)/(ETM), 6/1/96 Aaa 256,590
- -------------------------------------------------------------
500,000 Ohio State Water
Development Authority
Revenue, 5.65%, (MBIA
Insured), 6/1/2005 Aaa 482,810
- -------------------------------------------------------------
650,000 Ohio State Water
Development Authority,
5.00% (MBIA Insured),
12/1/98 AAA 636,863
- -------------------------------------------------------------
250,000 Olmstead Falls, OH,
Local School District,
6.30% (FGIC Insured),
12/15/2001 Aaa 259,812
- -------------------------------------------------------------
175,000 Pickerington, OH, Local
School District, 4.70%
(FGIC Insured),
12/1/2004 AAA 153,629
- -------------------------------------------------------------
250,000 Pickerington, OH, Local
School District, 5.55%
(AMBAC Insured),
12/1/2007 Aaa 235,050
- -------------------------------------------------------------
200,000 Portage County, OH,
5.20% GO Bonds (AMBAC
Insured), 12/1/2001 AAA 192,570
- -------------------------------------------------------------
200,000 Salem, OH, 6.00% Sewer
System Revenue Bonds
(Series 1992)/(AMBAC
Insured), 2/1/2001 Aaa 201,190
- -------------------------------------------------------------
250,000 Sandusky County, OH,
6.65% (AMBAC Insured),
12/1/98 Aaa 260,258
- -------------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$150,000 Solon, OH, 5.65%,
12/1/2005 Aa $145,830
- -------------------------------------------------------------
250,000 Solon, OH, 6.55%,
12/1/2000 Aa 261,040
- -------------------------------------------------------------
250,000 Solon, OH, 6.65%,
12/1/2001 Aa 262,820
- -------------------------------------------------------------
250,000 Solon, OH, School
District, 6.85%,
12/1/2000 Aa 264,765
- -------------------------------------------------------------
245,000 South Euclid, OH,
Recreational
Facilities, 6.15%,
12/1/2000 A1 251,443
- -------------------------------------------------------------
250,000 South Western City
School District, 6.00%
(AMBAC Insured),
12/1/2004 AAA 251,283
- -------------------------------------------------------------
250,000 South Western City
School District,
6.10%, 12/1/99 Baa 254,970
- -------------------------------------------------------------
250,000 Springfield, OH, Local
School District,
6.00%, 12/1/2002 A 256,952
- -------------------------------------------------------------
500,000 State of Ohio, 4.80%
Highway Revenue Bonds,
5/15/2001 AA+ 469,585
- -------------------------------------------------------------
500,000 Toledo, OH, Sewer
System Revenue, 7.25%
(MBIA Insured),
11/15/2000 Aaa 534,225
- -------------------------------------------------------------
250,000 University of
Cincinnati, OH, 5.15%
Revenue Bonds (Series
R5), 6/1/2005 A1 227,198
- -------------------------------------------------------------
250,000 University of
Cincinnati, OH, 6.40%
(MBIA Insured),
12/1/2003 A1 259,080
- -------------------------------------------------------------
250,000 University of
Cincinnati, OH, 6.65%,
6/1/97 A1 250,658
- -------------------------------------------------------------
250,000 University of Toledo,
5.00% (FGIC Insured),
6/1/2008 Aaa 217,760
- -------------------------------------------------------------
200,000 Upper Arlington, OH,
City School District,
6.80% (Prerefunded,
12/1/99 @102) A1 212,052
- -------------------------------------------------------------
170,000 Warren County, OH,
6.95% Sewer System
Revenue Bonds
(Prerefunded,
12/1/2002 @102) Aaa 183,418
- -------------------------------------------------------------
235,000 Warren County, OH,
Waterworks Revenue,
6.10% (FGIC Insured),
12/1/2002 Aaa 239,857
- -------------------------------------------------------------
470,000 Westerville, OH, 5.90%,
12/1/2004 Aa 471,720
- -------------------------------------------------------------
250,000 Worthington, OH, City
School District,
5.85%, (FGIC Insured),
6/1/2002 Aaa 249,242
- -------------------------------------------------------------
250,000 Worthington, OH, City
School District, 6.90%
(MBIA Insured),
12/1/96 Aaa 257,230
- -------------------------------------------------------------
250,000 Worthington, OH, City
School District, 7.15%
(MBIA Insured),
12/1/2000 Aaa 267,715
- -------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
- ----------------------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
$250,000 Wright State
University, 5.00%
(AMBAC Insured),
5/1/2006 Aaa $225,620
- -------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $52,529,117) 52,301,515
- -------------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES 10.2%
99,000 Clermont County, OH,
Hospital Facilities,
Weekly VRDNs (Mercy
Health Care
System)/(MBIA Insured) VMIG1 99,000
- -------------------------------------------------------------
250,000 Cleveland, OH, 6.50%
Airport System Revenue
Bonds,
1/1/95 AAA 250,000
- -------------------------------------------------------------
500,000 Columbus, OH, 5.05%
Water System Revenue
Bonds (Series 1991),
11/1/95 A1 499,755
- -------------------------------------------------------------
240,000 Columbus, OH, 6.90%,
5/1/95 Aa1 241,865
- -------------------------------------------------------------
900,000 Columbus, OH, Electric
System Revenue Monthly
VRDNs (Dai-Ichi Kangyo
Bank Ltd. LOC) VMIG1 900,000
- -------------------------------------------------------------
200,000 Columbus, OH, Sewer
Revenue Bonds Weekly
VRDNs VMIG1 200,000
- -------------------------------------------------------------
300,000 Hamilton County, OH,
8.50% Sewer System
Revenue Bonds (ETM),
12/1/95 Aaa 308,589
- -------------------------------------------------------------
200,000 Mentor, OH, Exempt
Village School
District, 7.10% (MBIA
Insured)/(ETM),
12/1/95 Aaa 203,164
- -------------------------------------------------------------
420,000 Miami University, OH,
6.60%, 12/1/95 A+ 424,511
- -------------------------------------------------------------
CREDIT
RATINGS:
MOODY'S
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
$430,000 Montgomery County, OH,
4.15% Water Revenue
Bonds (Greater
Moraine-Beaver Creek
Sewer District)/(FGIC
Insured),
11/15/95 Aaa $424,913
- -------------------------------------------------------------
900,000 Ohio State Air Quality
Development Authority,
3.65%, 2/1/95 A-1+ 900,000
- -------------------------------------------------------------
500,000 Ohio State Liquor
Profits Revenue, 6.65%
(BIG Insured), 3/1/95 Aaa 501,640
- -------------------------------------------------------------
225,000 Ohio State University
Weekly VRDNs (Series
1985B)/ (National
Westminster Bank PLC
LOC) VMIG1 225,000
- -------------------------------------------------------------
250,000 Ohio State University,
7.10% (ETM), 12/1/95 A1 254,765
- -------------------------------------------------------------
500,000 Ohio Water Development
Authority, Daily VRDNs
(Mead Corp.)/(Swiss
Bank Corp. LOC) A1+ 500,000
- -------------------------------------------------------------
100,000 Summit County, OH, IDR
Monthly VRDNs
(Firemans Insurance
LOC) A-1+ 100,000
- -------------------------------------------------------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $6,041,532) 6,033,202
- -------------------------------------------------------------
TOTAL MUNICIPAL SECURITIES (IDENTIFIED COST
$58,570,649) $58,334,717
- -------------------------------------------------------------
See Notes to Portfolios of Investments.
</TABLE>
- -----------------------------------
THE MONITOR FIXED INCOME SECURITIES FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS 40.1%
- ----------------------------------------------------------------------
BANKS & SAVINGS AND LOANS 2.3%
$250,000 BankAmerica Corp., 7.75%,
7/15/2002 $237,500
250,000 Citicorp, 9.75%, 8/1/99 260,625
250,000 Citizens & Southern Corp.,
Georgia, 11.70%, 2/1/95 250,625
500,000 Comerica Bank Notes, 9.75%,
5/1/99 520,625
500,000 Comerica Bank, Detroit,
5.95%,
9/15/97 469,375
1,000,000 Mellon Bank N.A., 6.50%,
8/1/2005 841,250
250,000 Security Pacific Corp.,
9.75%,
5/15/99 260,312
- ----------------------------------------------------------------------
2,840,312
- ----------------------------------------------------------------------
BASIC INDUSTRY 1.3%
$500,000 Air Products & Chemicals,
8.875%, 8/1/2001 $513,750
250,000 Alcan Aluminum Ltd., 9.40%,
6/1/95 252,500
250,000 Arco Chemical Co., 9.90%,
11/1/2000 267,812
250,000 Dow Chemical Co., 4.625%,
10/15/95 245,313
250,000 Weyerhaeuser Co., 9.05%,
2/1/2003 259,375
- ----------------------------------------------------------------------
1,538,750
- ----------------------------------------------------------------------
CAPITAL GOODS 0.4%
250,000 Caterpillar, Inc., 9.375%,
7/15/2000 262,812
250,000 Deere & Co., 8.25%, 6/1/96 251,563
- ----------------------------------------------------------------------
514,375
- ----------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
-----------------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ----------------------------------------------------------------------
CONSUMER GOODS & SERVICES 9.5%
$500,000 Albertson's, Inc., 6.375%,
5/1/95 $500,000
1,500,000 American Home Products,
6.50%, 10/15/2002 1,340,625
500,000 Baxter International, Inc.,
5.00%,
10/1/95 491,875
1,000,000 Carnival Corp., 6.15%,
10/1/2003 858,750
1,000,000 Columbia/HCA Healthcare,
8.85%,
1/1/2007 993,750
250,000 Dayton Hudson Corp., 10.00%,
12/1/2000 268,437
750,000 Grand Met Investment Corp.,
7.125%, 9/15/2004 688,125
250,000 Great Atlantic & Pacific Tea
Company, Inc., 9.125%,
1/15/98 250,000
500,000 Joseph E. Seagram & Sons,
Inc., 7.00%, 4/15/2008 432,500
1,000,000 Limited, Inc., 7.80%,
5/15/2002 968,750
250,000 Limited, Inc., 9.125%,
2/1/2001 259,062
750,000 May Dept. Stores Co.,
9.875%,
6/15/2000 801,562
250,000 Nordstrom, Inc., 8.875%,
2/15/98 255,312
500,000 Philip Morris Cos., Inc.,
7.50%,
3/15/97 491,875
500,000 Philip Morris Cos., Inc.,
7.625%,
5/15/2002 474,375
500,000 Scripps Howard, Inc.,
7.375%,
12/15/98 485,000
250,000 Super Value Stores, Inc.,
8.875%,
6/15/99 255,000
250,000 Universal Corp., 9.25%,
2/15/2001 258,438
1,500,000 V.F. Corp., 7.60%, 4/1/2004 1,411,875
- ----------------------------------------------------------------------
11,485,311
- ----------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL 1.5%
250,000 Alco Standard Corp., 8.875%,
4/15/2001 250,312
250,000 Harsco Corp., 8.75%, 5/15/96 252,812
500,000 United Technologies Corp.,
9.625%, 5/15/99 512,500
250,000 Whirlpool Corp., 9.50%,
6/15/2000 262,188
500,000 Xerox Corp., 8.125%,
4/15/2002 497,500
- ----------------------------------------------------------------------
1,775,312
- ----------------------------------------------------------------------
ENERGY-OIL & GAS 0.6%
500,000 Consolidated Natural Gas
Co., 5.875%, 10/1/98 464,375
250,000 Pennzoil Co., 9.625%,
11/15/99 257,500
- ----------------------------------------------------------------------
721,875
- ----------------------------------------------------------------------
FINANCE COMPANIES 5.4%
1,000,000 Bear Stearns, 6.625%,
1/15/2004 858,750
750,000 Bell Atlantic Financial,
6.625%,
11/30/97 718,125
750,000 BHP U.S. Finance Corp.,
7.00%,
12/1/97 725,625
1,000,000 Dean Witter Discover, 6.00%,
3/1/98 938,750
250,000 Dow Capital, B.V., 8.25%,
2/15/96 251,562
500,000 Eaton Off Shore Ltd., 9.00%,
2/15/2001 513,750
250,000 Ford Capital BV, 9.875%,
5/15/2002 268,750
250,000 Ford Motor Credit Co.,
9.50%,
4/15/2000 261,250
250,000 International Lease Finance
Co., 6.50%, 7/15/97 239,688
250,000 International Lease Finance
Co., 8.20%, 4/15/95 250,937
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
FINANCE COMPANIES (CONTINUED)
$250,000 Morgan Stanley Group,
9.875%,
5/1/95 $252,188
1,000,000 Soloman Brothers, 6.75%,
1/15/2006 830,000
500,000 Transamerica Finance Corp.,
5.40%, 9/1/95 495,000
- ----------------------------------------------------------------------
6,604,375
- ----------------------------------------------------------------------
FOREIGN INDUSTRIAL 1.9%
500,000 Hanson Oveseas, 7.375%,
1/15/2003 468,750
750,000 Hydro-Quebec, Canada,
7.375%,
2/1/2003 699,375
500,000 Northern Telecom Ltd.,
8.75%,
6/12/2001 506,875
615,000 Rhone Poulenc, 7.75%,
1/15/2002 587,325
- ----------------------------------------------------------------------
2,262,325
- ----------------------------------------------------------------------
FOREIGN SOVEREIGN 4.2%
500,000 Province of Ontario, Canada,
5.70%, 10/1/97 471,875
500,000 Province of Ontario, Canada,
6.125%, 6/28/2000 450,625
1,000,000 Province of Ontario, Canada,
7.375%, 1/27/2003 940,000
250,000 Province of Quebec, Canada,
8.80%, 4/15/2003 252,500
1,000,000 Province of Saskatchewan,
8.00%,
7/15/2004 965,000
750,000 Republic of Finland, 6.75%,
11/24/97 725,625
1,550,000 Republic of Iceland, 6.125%,
2/1/2004 1,334,938
- ----------------------------------------------------------------------
5,140,563
- ----------------------------------------------------------------------
GAS & ELECTRIC UTILITIES 6.2%
500,000 Baltimore Gas & Electric
Co., 6.625%, 3/15/2008 424,375
250,000 Baltimore Gas & Electric
Co., 9.125%, 10/15/95 253,125
1,000,000 Big Rivers Electric, 9.50%,
2/15/2017 1,062,500
1,000,000 Cajun Electric Power, 9.52%,
3/15/2019 1,063,750
500,000 Commonwealth Edison, 9.375%,
2/15/2000 511,875
500,000 Georgia Power Co., 5.125%,
9/1/95 493,750
200,000 Houston Lighting & Power
Co., 6.75%, 11/1/97 193,000
700,000 Iowa Electric Power & Light,
8.625%, 5/15/2001 712,250
750,000 Orange & Rockland Utilities,
Inc., 6.50%, 10/15/97 720,000
1,000,000 Soyland Power Co-op., Inc.,
9.63%, 9/30/2011 1,095,000
500,000 Virginia Electric & Power
Co., 6.375%, 3/1/95 499,375
500,000 Western Resources, Inc.,
7.25%,
7/1/99 478,125
- ----------------------------------------------------------------------
7,507,125
- ----------------------------------------------------------------------
INSURANCE 1.7%
500,000 Lincoln National Corp.,
Inc., 7.125%, 7/15/99 471,875
1,500,000 MBIA, Inc., 9.00%, 2/15/2001 1,543,125
- ----------------------------------------------------------------------
2,015,000
- ----------------------------------------------------------------------
TECHNOLOGY 1.7%
500,000 International Business
Machines, 6.375%,
6/15/2000 458,125
500,000 International Business
Machines, 9.00%, 5/1/98 503,125
</TABLE>
- --------------------------------------------------------------------------------
-----------------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C> <C>
CORPORATE BONDS (CONTINUED)
- ----------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
$1,000,000 Texas Instruments Notes,
9.25%,
6/15/2003 $1,040,000
- ----------------------------------------------------------------------
2,001,250
- ----------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION COMPANIES 3.2%
550,000 Cincinnati Bell, Inc.,
9.10%,
6/15/2000 571,313
1,000,000 Comsat Corp., 8.95%,
5/15/2001 1,026,250
1,000,000 General Telephone of the
Southeast, 7.625%,
7/1/2002 951,250
900,000 GTE Corp., 9.10%, 6/1/2003 920,250
500,000 Southwestern Bell Telephone
Co., 6.625%, 4/1/2005 440,625
- ----------------------------------------------------------------------
3,909,688
- ----------------------------------------------------------------------
TRANSPORTATION 0.2%
250,000 Union Pacific Corp., 9.625%,
12/15/2002 266,562
- ----------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST
$50,211,151) 48,582,823
- ----------------------------------------------------------------------
GOVERNMENT BONDS 56.5%
- ----------------------------------------------------------------------
GOVERNMENT AGENCIES 9.2%
3,000,000 Federal Home Loan Bank,
8.03%,
12/19/97 2,997,480
750,000 Federal National Mortgage
Asociation, 9.40%, 8/10/98 773,482
2,002,039 GNMA Pool Number 345128,
6.50%, 1/15/2024 1,737,394
996,464 GNMA Pool Number 352982,
7.50%, 5/15/2024 925,777
1,959,760 GNMA Pool Number 372962,
7.00%, 3/15/2024 1,761,334
1,012,467 GNMA Pool Number 373015,
8.00%, 6/15/2024 969,438
1,957,543 GNMA Pool Number 391615,
8.50%, 9/15/2024 1,926,345
- ----------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST
$11,645,429) 11,091,250
- ----------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
U.S. TREASURY SECURITIES 47.3%
- ----------------------------------------------------------------------
U.S. TREASURY NOTES 45.5%
$2,000,000 5.50%, 4/15/2000 $1,802,380
2,000,000 6.00%, 10/15/99 1,855,480
2,000,000 6.375%, 1/15/2000 1,881,080
5,000,000 6.375%, 7/15/99 4,723,500
3,000,000 6.375%, 8/15/2002 2,747,640
1,000,000 7.00%, 4/15/99 969,480
8,000,000 7.25%, 5/15/2004 7,679,680
5,000,000 7.25%, 8/31/96 4,970,849
10,000,000 7.50%, 11/15/2001 9,819,600
1,000,000 7.50%, 5/15/2002 981,560
2,500,000 7.875%, 8/15/2001 2,505,075
8,000,000 8.00%, 5/15/2001 8,060,879
3,500,000 8.00%, 8/15/99 3,519,985
1,000,000 8.50%, 11/15/2000 1,031,190
500,000 8.75%, 8/15/2000 520,650
2,000,000 9.125%, 5/15/99 2,092,640
- ----------------------------------------------------------------------
55,161,668
- ----------------------------------------------------------------------
U.S. TREASURY BONDS 1.8%
1,000,000 8.75%, 8/15/2020 1,081,550
1,000,000 9.375%, 2/15/2006 1,110,150
- ----------------------------------------------------------------------
2,191,700
- ----------------------------------------------------------------------
TOTAL U.S. TREASURY SECURITIES
(IDENTIFIED COST $58,796,237) 57,353,368
- ----------------------------------------------------------------------
TOTAL GOVERNMENT BONDS
(IDENTIFIED COST $70,441,666) 68,444,618
- ----------------------------------------------------------------------
(G) COMMERCIAL PAPER 1.7%
- ----------------------------------------------------------------------
FINANCE COMMERCIAL
2,073,663 General Electric Capital
Corp., 4.252%, 1/3/95 (at
amortized cost) 2,073,663
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST
$122,726,480) $119,101,104
- ----------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
------------------------------------------
THE MONITOR MORTGAGE SECURITIES FUND December 31, 1994
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT(I) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
LONG-TERM OBLIGATIONS 128.5%
- ----------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. 38.1%
$54,885 REMIC, Inv. Flt., 12.323%,
Series 1041G, 2/15/2021 $49,790
731,549 REMIC, Inv. Flt., 12.307%,
Series 1542OB, 7/15/2022 450,188
1,413,384 REMIC, Inv. Flt., 4.076%,
Series 1609LE, 11/15/2023 558,555
813,567 REMIC, Inv. Flt., 11.667%,
Series 1500SH, 4/15/2023 415,936
1,109,916 REMIC, Inv. Flt., 9.55%,
Series 1704S, 3/15/2009 721,445
707,275 REMIC, Inv. Flt., 9.778%,
Series 1564SE, 8/15/2008 449,119
423,786 REMIC, Inv. Flt., 9.453%,
Series 1564SG, 8/15/2008 232,056
149,308 10.50%, 7/1/2004 152,621
248,957 10.00%, 3/1/2001-10/1/2003 253,548
PRINCIPAL AMOUNT(I) VALUE
- -------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. (CONTINUED)
$1,800,639 REMIC, Inv. Flt., 8.753%,
Series 1647SB, 12/15/2008 $1,205,221
260,721 9.50%, 10/1/2004 264,389
1,592,015 9.00%, 11/1/98-1/1/2005 1,607,632
335,819 8.75%, 8/1/2001 334,663
2,805,495 REMIC, Inv. Flt., 4.665%,
Series 1604SE, 11/15/2008 1,433,019
1,000,000 REMIC, Inv. Flt., 3.588%,
Series 1422SA, 11/15/2007 355,000
857,654 REMIC, Z-Bond, 7.00%, Series
1578Z, 9/15/2023 548,153
3,372,441 6.50%, 1/1/98 3,212,250
10,000,000 6.00%, Series 1639M,
12/15/2008 8,003,400
380,819 ARM, 5.625%, 3/1/2016 371,298
19,509,028 REMIC, Inv. Flt., IO, 4.25%,
Series 1669JB, 7/15/2020 682,816
5,946,128 REMIC, Inv. Flt., IO,
3.3125%, Series 1443L,
4/15/2020 249,024
</TABLE>
- --------------------------------------------------------------------------------
------------------------------------------
THE MONITOR MORTGAGE SECURITIES FUND (Continued)
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT(I) VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
LONG-TERM OBLIGATIONS (CONTINUED)
- ----------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. (CONTINUED)
$4,171,501 REMIC, Inv. Flt., IO,
3.2625%, Series1454MJ,
4/15/2022 $260,719
10,001,013 REMIC, Inv. Flt., IO,
1.8625%, Series 1585I,
10/15/2021 259,426
27,484 REMIC, Inv. Flt., IO,
410.75%, Series 1394KD,
3/15/2022 164,902
- ----------------------------------------------------------------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORP.
(IDENTIFIED COST $31,959,474) 22,235,170
- ----------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION 68.5%
414,598 REMIC, Inv. Flt., 3.466%,
Series 1992-160AQ,
8/25/2022 162,850
1,000,000 REMIC, Inv. Flt., 11.23%,
Series 1992-201SB,
10/25/2022 641,720
450,000 REMIC, Inv. Flt., 9.67%,
Series 1993-175SD,
9/25/2008 270,617
741,169 REMIC, Inv. Flt., 9.561%,
Series 1994-32S, 3/25/2009 526,230
289,999 REMIC, Inv. Flt., 9.236%,
Series 1993-85SA,
6/25/2008 173,965
1,939,448 REMIC, Inv. Flt., 9.128%,
Series 1994-30S, 6/25/2023 1,139,426
1,506,763 REMIC, Inv. Flt., 8.368%,
Series 1994-33SA,
2/25/2008 893,601
462,749 10.00%, 6/1/2003-7/1/2004 480,824
588,599 9.00%, 4/1/2003-3/1/2006 597,611
412,839 8.50%, 2/1/2005 412,839
10,000,000 8.00%, 1/1/2008 9,806,300(h)
10,000,000 7.50%, 1/1/2000 9,684,400(h)
2,107,484 REMIC, Z-Bond, 7.00%, Series
1994-52Z, 4/25/2007 1,759,770
354,477 ARM, 6.575%, 2/1/2027 352,779
2,364,290 REMIC, Z-Bond, 6.50%, Series
1994-20Z, 2/25/2009 1,741,134
2,682,735 6.50%, 10/1/2008 2,453,871
541,457 ARM, 5.102%, 3/1/2018 515,099
2,000,000 REMIC, PAC, 4.00%, Series
1992-112ED, 12/25/2020 1,424,420
1,000,000 REMIC, PO, Series 1989-43E,
10/25/2017 463,750
1,045,015 REMIC, PAC, PO, Series
1990-70B, 12/25/2018 402,331
788,901 REMIC, PO, Series 1992-8C,
1/25/2020 551,182
PRINCIPAL AMOUNT(I) VALUE
- -------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
$827,934 REMIC, PO, Series 1993-153C,
2/25/2023 $300,126
1,904,119 REMIC, PO, Series 1993-48B,
4/25/2008 1,126,191
4,400,482 REMIC, PO, Series, 1994-8E,
11/25/2023 2,025,938
12,743,029 REMIC, Inv. Flt., IO,
3.53125%, Series
1992-G64S, 12/25/2018 581,337
8,071,442 REMIC, Inv. Flt., IO,
2.13125%, Series
1993-G35S, 1/25/2022 211,875
3,356,189 REMIC, PO, Series 1994-54D,
10/25/2023 1,097,071
8,500,908 REMIC, Inv. Flt., IO,
2.13125%, Series
1993-G36S, 2/25/2022 233,775
233,268 REMIC, Inv. Flt., IO,
1.98125%, Series
1993-82SA, 5/25/2023 5,176
- ----------------------------------------------------------------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $52,727,944) 40,036,208
- ----------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 12.1%
919,663 8.50%, 4/15/2006-5/15/2007 921,107
4,328,679 7.00%, 1/15/2008-6/15/2008 4,049,999
2,223,315 GNMA II ARMs, 5.125%,
10/20/2022 2,115,618
- ----------------------------------------------------------------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $7,680,703) 7,086,724
- ----------------------------------------------------------------------
U.S. TREASURY NOTES 9.3%
2,500,000 5.875%, 5/31/96 2,445,750
3,250,000 5.125%, 11/15/95-11/30/98 3,011,058
- ----------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES (IDENTIFIED COST
$5,725,264) 5,456,808
- ----------------------------------------------------------------------
OTHER 0.5%
608,131 Drexel Burnham Lambert CMO,
PO, Series Z-3, 1/1/2019
(identified cost $559,307) 314,708
- ----------------------------------------------------------------------
TOTAL LONG-TERM OBLIGATIONS
(IDENTIFIED COST $98,652,692) 75,129,618
- ----------------------------------------------------------------------
(B) REPURCHASE AGREEMENT 4.7%
- ----------------------------------------------------------------------
2,767,000 Morgan Stanley & Co., Inc.,
5.50%, dated 12/30/94, due
1/3/95 (at amortized cost) 2,767,000
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST
$101,419,692 ) $77,896,618
- ----------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- ------------------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME December 31, 1994
SECURITIES FUND
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS 70.8%
- ----------------------------------------------------------------------
BANKING 10.5%
$1,000,000 Bank of Montreal, 10.00%,
9/1/98 $1,050,000
1,000,000 Bankers Trust, 9.20%,
7/15/99 1,018,750
1,100,000 Chase Manhattan Corp.,
10.00%,
6/15/99 1,155,000
1,000,000 Chemical NY Corp., 9.75%,
6/15/99 1,042,500
1,000,000 Citicorp, 9.00%, 4/15/99 1,013,750
750,000 Citizens & Southern Corp.,
Georgia, 11.70%, 2/1/95 751,875
500,000 Comerica Bank Notes, 9.75%,
5/1/99 520,625
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
BANKING (CONTINUED)
$1,000,000 Comerica Bank, Detroit,
5.95%,
9/15/97 $938,750
1,000,000 Dominion Bankshares, 9.625%,
6/15/99 1,036,250
1,000,000 First Chicago, 9.875%,
7/1/99 1,045,000
1,000,000 First Security Bank Utah,
7.875%, 10/15/99 972,500
1,000,000 Golden West Financial,
9.15%,
5/23/98 1,021,250
1,000,000 Republic National Bank of
New York, 4.75%, 10/15/95 980,000
</TABLE>
- --------------------------------------------------------------------------------
------------------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME (Continued)
SECURITIES FUND
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ----------------------------------------------------------------------
BANKING (CONTINUED)
$500,000 Sovran Financial, 9.75%,
6/15/99 $521,250
- ----------------------------------------------------------------------
13,067,500
- ----------------------------------------------------------------------
BASIC INDUSTRY 3.2%
250,000 Alcan Aluminum Ltd., 9.70%,
10/15/96 257,500
1,000,000 Alcan Aluminum Ltd., 9.40%,
6/1/95 1,010,000
250,000 Dow Chemical Co., 4.625%,
10/15/95 245,313
500,000 duPont (E.I.) deNemours &
Co., 8.65%, 12/1/97 508,750
1,000,000 Waste Management, Inc.,
7.75%,
2/1/95 1,001,250
1,000,000 WMX Technologies, Inc.,
8.25%,
11/15/99 993,750
- ----------------------------------------------------------------------
4,016,563
- ----------------------------------------------------------------------
CAPITAL GOODS 1.2%
500,000 Baker Hughes, Inc., 7.625%,
2/15/99 485,625
1,000,000 Deere & Co., 8.25%, 6/1/96 1,006,250
- ----------------------------------------------------------------------
1,491,875
- ----------------------------------------------------------------------
CONSUMER PRODUCTS 9.0%
1,000,000 Albertson's, Inc., 6.375%,
5/1/95 1,000,000
1,000,000 American Brands, 9.00%,
6/15/99 1,026,250
1,000,000 Anheuser Busch Co., 8.75%,
7/15/95 1,010,000
1,000,000 Columbia Healthcare, 6.50%,
3/15/99 918,750
1,400,000 Columbia Pictures Ent.,
9.875%,
2/1/98 1,480,500
250,000 Dillard Dept. Stores Inc.,
9.50%,
1/15/98 259,687
1,120,000 Dillard Dept. Stores, Inc.,
8.75%,
6/15/98 1,141,000
1,000,000 Pepsico, Inc., 7.00%,
11/15/96 986,250
500,000 Philip Morris Cos., Inc.,
6.375%,
1/15/98 475,625
1,000,000 Philip Morris Cos., 7.375%,
2/15/99 963,750
500,000 Scripps Howard, Inc.,
7.375%,
12/15/98 485,000
1,000,000 Super Value Stores, Inc.,
8.875%,
6/15/99 1,020,000
500,000 Wal-Mart Stores, Inc.,
8.00%, 5/1/96 501,250
- ----------------------------------------------------------------------
11,268,062
- ----------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL 2.8%
750,000 Harsco Corp., 8.75%, 5/15/96 758,437
1,250,000 Loews Corp., 8.50%, 4/15/98 1,260,937
1,500,000 Martin Marietta Corp.,
8.50%, 3/1/96 1,509,375
- ----------------------------------------------------------------------
3,528,749
- ----------------------------------------------------------------------
ENERGY-OIL & GAS 2.8%
1,000,000 Burlington Resources, 7.15%,
5/1/99 957,500
1,000,000 Elf Aquitaine, 7.75%, 5/1/99 982,500
1,500,000 Texaco, Inc., 9.00%,
11/15/97 1,535,625
- ----------------------------------------------------------------------
3,475,625
- ----------------------------------------------------------------------
FINANCE 17.7%
1,000,000 American Express Credit,
7.375%,
2/1/99 975,000
1,000,000 American General Finance
Corp., 6.875%, 7/1/99 948,750
1,050,000 Aristar, Inc., 7.875%,
2/15/99 1,030,312
1,000,000 Associates Corp., N.A.,
8.70%,
1/1/97 1,012,500
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
FINANCE (CONTINUED)
$1,000,000 Avco Financial Services,
Inc., 5.875%, 10/15/97 $945,000
1,200,000 Bear Stearns Co., 7.625%,
9/15/99 1,149,000
1,250,000 Bell Atlantic Financial,
6.625%,
11/30/97 1,196,875
1,250,000 BHP U.S. Finance Corp.,
7.00%,
12/1/97 1,209,375
1,000,000 Chrysler Financial Corp.,
13.25%,
10/15/99 1,193,750
500,000 CNA Financial, 8.875%,
3/1/98 501,875
500,000 Commercial Credit Co.,
8.375%,
4/15/95 501,875
1,000,000 Dean Witter Discover, 6.00%,
3/1/98 938,750
750,000 Dow Capital, B.V., 8.25%,
2/15/96 754,687
1,000,000 Ford Motor Credit Co.,
7.75%,
10/1/99 976,250
500,000 Heller Financial Corp.,
6.50%,
11/15/95 496,875
1,000,000 Household International,
6.00%,
3/15/99 921,250
1,000,000 International Lease Finance
Corp., 5.75%, 7/1/98 923,750
1,000,000 ITT Financial Corp., 8.90%,
3/1/95 1,002,500
1,000,000 Lehman Bros. Inc., 7.625%,
8/1/98 951,250
500,000 Morgan Stanley Group,
7.875%,
12/15/98 490,625
750,000 Morgan Stanley Group,
9.875%,
5/1/95 756,562
1,000,000 Salomon, Inc., 9.375%,
4/15/98 1,021,250
1,000,000 Transamerica Finance Corp.,
5.40%, 9/1/95 990,000
250,000 Transamerica Finance Corp.,
6.75%, 1/15/98 240,000
1,000,000 Xerox Credit Corp., 10.125%,
4/15/99 1,032,500
- ----------------------------------------------------------------------
22,160,561
- ----------------------------------------------------------------------
FOREIGN INDUSTRIAL 1.5%
1,000,000 Hanson Finance (U.K.) PLC,
5.50%, 1/15/96 978,750
1,000,000 Rhone Poulenc, 6.75%,
10/15/99 931,250
- ----------------------------------------------------------------------
1,910,000
- ----------------------------------------------------------------------
FOREIGN SECURITIES 3.8%
1,000,000 Korea Development Bank,
9.25%,
6/15/98 1,020,000
1,000,000 Province of Ontario, Canada,
5.70%,
10/1/97 943,750
1,500,000 Province of Quebec, 9.375%,
4/1/99 1,546,875
1,250,000 Republic of Finland, 6.75%,
11/24/97 1,209,375
- ----------------------------------------------------------------------
4,720,000
- ----------------------------------------------------------------------
GAS & ELECTRIC UTILITIES 9.6%
1,200,000 Baltimore Gas & Electric
Co., 9.125%, 10/15/95 1,215,000
1,000,000 Carolina Power & Light Co.,
5.20%, 1/1/95 1,000,000
500,000 Empire District Electric
Co., 5.70%, 5/1/98 466,250
1,000,000 Georgia Power Co., 5.125%,
9/1/95 987,500
500,000 Houston Lighting & Power
Co., 6.75%, 11/1/97 482,500
1,000,000 Iowa Electric Light & Power,
7.60%, 3/1/99 976,250
1,000,000 National Rural Utilities,
8.50%,
2/15/98 1,010,000
</TABLE>
- --------------------------------------------------------------------------------
------------------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME (Continued)
SECURITIES FUND
- -------------------------------------------------------
- -------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
- -------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ----------------------------------------------------------------------
GAS & ELECTRIC UTILITIES (CONTINUED)
$1,250,000 Orange & Rockland Utilities,
Inc., 6.50%, 10/15/97 $1,200,000
1,000,000 Public Service Electric &
Gas Co., 6.00%, 6/1/95 997,500
970,000 Southern California Edison,
5.55%, 2/1/95 968,788
1,000,000 Southern California Edison,
7.50%, 4/15/99 975,000
1,250,000 Southern California Gas Co.,
6.50%,
12/15/97 1,195,313
500,000 Virginia Electric & Power
Co., 6.375%, 3/1/95 499,375
- ----------------------------------------------------------------------
11,973,476
- ----------------------------------------------------------------------
INSURANCE 3.9%
1,000,000 Allstate Corp., 5.875%,
6/15/98 925,000
1,000,000 Cigna Corp., 8.00%, 9/1/96 1,000,000
1,000,000 Continental Corp., 8.25%,
4/15/99 986,250
1,000,000 Torchmark Corp., 9.625%,
5/1/98 1,030,000
1,000,000 Travelers, Inc., 7.75%,
6/15/99 981,250
- ----------------------------------------------------------------------
4,922,500
- ----------------------------------------------------------------------
TECHNOLOGY 1.6%
750,000 Becton Dickinson & Co.,
8.375%,
6/1/96 756,562
1,250,000 IBM Credit Corp., 6.375%,
11/1/97 1,192,187
- ----------------------------------------------------------------------
1,948,749
- ----------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATIONS 2.5%
1,250,000 Cincinnati Bell, Inc.,
6.70%, 12/15/97 1,203,125
1,000,000 GTE Corp., 8.85%, 3/1/98 1,012,500
1,000,000 MCI Communications Corp.,
6.25%, 3/23/99 931,250
- ----------------------------------------------------------------------
3,146,875
- ----------------------------------------------------------------------
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------
TRANSPORTATION 0.7%
$1,000,000 Union Pacific Corp., 6.25%,
3/15/99 $925,000
- ----------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST
$91,705,218) 88,555,535
- ----------------------------------------------------------------------
U.S. TREASURY NOTES 28.4%
- ----------------------------------------------------------------------
750,000 5.125%, 2/28/98 693,210
1,000,000 5.375%, 5/31/98 926,250
3,000,000 5.50%, 7/31/97 2,838,750
2,000,000 6.00%, 12/31/97 1,903,420
2,000,000 6.375%, 6/30/97 1,936,100
3,000,000 6.50%, 5/15/97 2,916,180
1,000,000 6.75%, 5/31/97 976,800
5,000,000 6.875%, 4/30/97 4,903,600
12,000,000 6.875%, 7/31/99 11,557,560
5,000,000 7.25%, 11/15/96 4,963,400
2,000,000 7.25%, 8/31/96 1,988,340
- ----------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $36,834,841) 35,603,610
- ----------------------------------------------------------------------
(G) COMMERCIAL PAPER 1.0%
- ----------------------------------------------------------------------
FINANCE--COMMERCIAL 1.0%
1,203,334 General Electric Capital
Corp., 4.25%,
1/3/95 1,203,334
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST,
$129,743,393) $125,362,479
- ----------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
Notes to Portfolios of Investments
<TABLE>
<C> <S>
* Underlying rating equivalent to MIG1.
(a) Each issue shows the rate of discount at the time of purchase.
(b) The repurchase agreement is fully collateralized by the U.S. government and/or agency obligations based on
market prices at the date of the portfolio.
(c) Also represents cost for federal tax purposes.
(d) Please refer to the Appendix of the Statement of Additional Information for an explanation of the credit
ratings. Current credit ratings are unaudited.
(e) The repurchase agreements are fully collateralized by U.S. Treasury obligations based on market prices at the
date of the portfolio.
(f) Non-income producing securities.
(g) Each issue shows the coupon rate.
(h) Indicates securities subject to dollar roll transactions with a total market value of $19,490,700.
(i) Securities with notional or nominal principal amounts show the current rate which may vary from the stated rate.
</TABLE>
The following abbreviations are used in these portfolios:
<TABLE>
<S> <C>
AMBAC -- American Municipal Bond Assurance Inv. Flt. -- Inverse Floater
Corporation IO -- Interest Only
ARM -- Adjustable Rate Mortgage LOC -- Letter of Credit
BANs -- Bond Anticipation Notes LT -- Limited Tax
BIG -- Bond Investors Guaranty MBIA -- Municipal Bond Investors Assurance
CMO -- Collateralized Mortgage Obligation PAC -- Planned Amortization Class
EDR -- Economic Development Revenue PCR -- Pollution Control Revenue
ETM -- Escrowed to Maturity PLC -- Public Limited Company
FGIC -- Financial Guaranty Insurance Co. PO -- Principal Only
FRN -- Floating Rate Note REMIC -- Real Estate Mortgage Investment Conduit
FSA -- Financial Security Assurance SPA -- Standby Purchase Agreement
GNMA -- Government National Mortgage Association UT -- Unlimited Tax
GO -- General Obligation VRDNs -- Variable Rate Demand Notes
IDA -- Industrial Development Authority Z-Bond -- Accrual Bond
IDR -- Industrial Development Revenue
</TABLE>
The categories of investments are shown as a percentage of net assets.
The following is a summary of the financial investment activity for the period
ended December 31, 1994.
<TABLE>
<CAPTION>
Cost of
Investments Net
for Federal Unrealized Gross Gross
Tax Appreciation/ Unrealized Unrealized Total
THE MONITOR FUNDS Purposes (Depreciation) Appreciation Depreciation Net Assets
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Money Market Fund $330,795,547* $0 $0 $0 $329,434,397
Ohio Municipal Money Market Fund 76,610,920* 0 0 0 76,758,671
U.S. Treasury Money Market Fund 277,944,937* 0 0 0 276,927,649
Growth Fund 91,222,901 16,129,987 17,084,469 954,482 106,674,752
Income Equity Fund 105,567,615 8,983,385 11,330,892 2,347,507 115,398,504
Ohio Tax-Free Fund 58,570,649 (235,932) 1,096,349 1,332,281 58,776,279
Fixed Income Securities Fund 122,726,480 (3,625,376) 514,027 4,139,403 121,075,260
Mortgage Securities Fund 101,419,692 (23,523,074) 0 23,523,074 58,423,496
Short/lntermediate Fixed Income
Securities Fund 129,743,393 (4,380,914) 65,248 4,446,162 125,111,920
- ------------------------------------------------------------------------------------------------------------
</TABLE>
*At amortized cost.
(See Notes which are an integral part of the Financial Statements)
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
- --------------------------------------------------------------------------------
Statements of Operations
YEAR ENDED DECEMBER 31, 1994
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR MONITOR
OHIO MUNICIPAL U.S. TREASURY
MONITOR MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income $14,467 $1,945 $10,342
Dividend income -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total income 14,467 1,945 10,342
- -------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,019 206 495
Trustees' fees 10 3 7
Administrative personnel and services fees 507 102 370
Custodian and recordkeeping fees and expenses 190 38 139
Transfer and dividend disbursing agent fees and expenses 24 20 26
Fund share registration costs 7 19 26
Auditing fees 2 18 8
Legal fees 12 5 7
Printing and postage 13 15 18
Insurance premiums -- 7 1
Distribution services fees 26 31 15
Miscellaneous 8 5 9
- -------------------------------------------------------------------------------------------------------------------------
Total expenses 1,818 469 1,121
- -------------------------------------------------------------------------------------------------------------------------
Deduct--
Waiver of investment advisory fees -- (103) --
Reimbursement of other operating expenses by the adviser -- -- --
Waiver of distribution services fees -- -- (9)
Waiver of administrative personnel and services fees (73) (29) (60)
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES 1,745 337 1,052
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 12,722 1,608 9,290
- -------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions
(identified cost basis) -- -- --
Net change in unrealized appreciation (depreciation) on
investments -- -- --
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- -- --
- -------------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $12,722 $1,608 $9,290
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Statements of Assets & Liabilities
DECEMBER 31, 1994
(All numbers in thousands except per share amounts)
<TABLE>
<CAPTION>
MONITOR MONITOR
OHIO MUNICIPAL U.S. TREASURY
MONITOR MONEY MONEY MARKET MONEY MARKET
MARKET FUND FUND FUND
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments at value $ 293,685 $ 76,611 $ 125,414
Investments in repurchase agreements 37,111 -- 152,531
Cash -- -- --
Dividends and interest receivable 113 398 90
Receivable for investments sold -- -- --
Receivable for Fund shares sold 104 29 78
Deferred expenses -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total assets 331,013 77,038 278,113
- -----------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased -- -- --
Payable for Fund shares redeemed 16 -- 1
Payable for dollar roll transactions -- -- --
Dividends payable 1,436 218 1,108
Payable to Adviser 84 10 45
Accrued expenses 43 52 31
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 1,579 280 1,185
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital 329,434 76,758 276,928
Net unrealized appreciation (depreciation) of
investments -- -- --
Accumulated net realized gain (loss) on investments -- -- --
Distributions in excess of net investment income -- -- --
Undistributed net investment income -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 329,434 $ 76,758 $ 276,928
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Trust Shares $ 287,805 $ 39,624 $ 256,538
Investment Shares $ 41,629 $ 37,134 $ 20,390
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PROCEEDS PER SHARE:
Trust Shares $1.00 $1.00 $1.00
Investment Shares $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------
OFFERING PRICE PER SHARE+:
Trust Shares $1.00 $1.00 $1.00
Investment Shares $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Trust Shares 287,805 39,624 256,538
Investment Shares 41,629 37,134 20,390
- -----------------------------------------------------------------------------------------------------------------------
Total shares outstanding ($0.001 par value) 329,434 76,758 276,928
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Investments, at identified cost $ 330,796 $ 76,611 $ 277,945
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
* Computation of Offering price: 100/96 of net asset value. See "What Shares Cost" in the prospectus.
** Computation of Offering price: 100/98 of net asset value. Includes dollar roll income of $1,854.
+ Dividend income is recorded net of withholding taxes of $5
and $57 for the Monitor Growth Fund and the Monitor Income
Equity Fund, respectively.
(See Notes which are an integral part of the Financial
Statements)
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONITOR MONITOR SHORT/
MONITOR MONITOR FIXED MONITOR INTERMEDIATE
MONITOR INCOME OHIO INCOME MORTGAGE FIXED INCOME
GROWTH EQUITY TAX-FREE SECURITIES SECURITIES SECURITIES
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
$221 $1,254 $3,270 $8,122 $9,318+ $8,219
2,367+ 4,717+ -- -- -- --
- -------------------------------------------------------------------------------------------
2,588 5,971 3,270 8,122 9,318 8,219
- -------------------------------------------------------------------------------------------
648 754 300 579 387 636
5 5 2 3 3 4
161 131 90 173 115 134
60 70 34 65 104 71
34 29 17 24 31 25
22 8 5 17 28 9
18 20 15 18 68 9
8 8 2 7 4 4
18 16 14 18 21 14
7 8 4 4 4 2
9 -- 7 6 31 --
7 7 4 6 13 6
- -------------------------------------------------------------------------------------------
997 1,056 494 920 809 914
- -------------------------------------------------------------------------------------------
-- -- -- -- (8) --
-- -- -- -- (50) --
-- -- -- -- (15) --
(41) -- (27) (42) (36) --
- -------------------------------------------------------------------------------------------
956 1,056 467 878 700 914
- -------------------------------------------------------------------------------------------
1,632 4,915 2,803 7,244 8,618 7,305
- -------------------------------------------------------------------------------------------
289 (290) -- (1,801) (10,599) (200)
381 (7,216) (4,412) (10,947) (21,638) (8,318)
- -------------------------------------------------------------------------------------------
670 (7,506) (4,412) (12,748) (32,237) (8,518)
- -------------------------------------------------------------------------------------------
$2,302 ($2,591) ($1,609) ($5,504) ($23,619) ($1,213)
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONITOR MONITOR SHORT/
MONITOR MONITOR FIXED MONITOR INTERMEDIATE
MONITOR INCOME OHIO INCOME MORTGAGE FIXED INCOME
GROWTH EQUITY TAX-FREE SECURITIES SECURITIES SECURITIES
FUND FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------
$107,353 $114,551 $58,335 $119,101 $75,130 $125,362
-- -- -- -- 2,767 --
-- 2 3 -- 1 --
257 967 487 2,114 450 2,367
-- -- -- -- 5,049 --
222 11 23 38 -- 154
-- -- -- -- 35 --
- -------------------------------------------------------------------------------------------
107,832 115,531 58,848 121,253 83,432 127,883
- -------------------------------------------------------------------------------------------
-- -- -- -- 5,027 --
1,031 10 5 87 204 2,693
-- -- -- -- 19,723 --
-- -- -- -- -- --
55 60 25 50 22 54
71 62 42 41 33 24
- -------------------------------------------------------------------------------------------
1,157 132 72 178 25,009 2,771
- -------------------------------------------------------------------------------------------
90,517 106,561 58,980 126,403 92,849 129,577
16,130 8,983 (236) (3,626) (23,523) (4,381)
-- (290) -- (1,801) (10,841) (200)
-- -- -- -- (62) --
28 145 32 99 -- 116
- -------------------------------------------------------------------------------------------
$106,675 $115,399 $58,776 $121,075 $58,423 $125,112
- -------------------------------------------------------------------------------------------
$103,463 $115,399 $56,469 $119,117 $54,164 $125,112
$3,212 N/A $2,307 $1,958 $4,259 N/A
- -------------------------------------------------------------------------------------------
$26.30 $21.93 $20.50 $19.69 $6.69 $19.14
$26.31 N/A $20.50 $19.70 $6.70 N/A
- -------------------------------------------------------------------------------------------
$26.30 $21.93 $20.50 $19.69 $6.69 $19.14
$27.41* N/A $20.92** $20.10** $6.84** N/A
- -------------------------------------------------------------------------------------------
3,933 5,263 2,755 6,050 8,099 6,536
122 N/A 112 99 636 N/A
- -------------------------------------------------------------------------------------------
4,055 5,263 2,867 6,149 8,735 6,536
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
$91,223 $105,568 $58,571 $122,726 $101,420 $129,743
- -------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Statements of Changes In Net Assets
YEAR ENDED DECEMBER 31:
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR
MONITOR OHIO U.S. TREASURY
MONITOR MONEY MUNICIPAL MONEY MONEY MARKET
MARKET FUND MARKET FUND FUND
<S> <C> <C> <C> <C> <C> <C>
1994 1993 1994 1993 1994 1993
- ---------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS--
Net investment income $12,722 $9,157 $1,608 $981 $9,290 $5,128
Net realized gain (loss) on
investment transactions -- -- -- -- -- --
Net change in unrealized
appreciation (depreciation) of
investments -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Change in net assets resulting from
operations 12,722 9,157 1,608 981 9,290 5,128
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM --
Net investment income:
Trust Shares (11,713) (8,609) (882) (863) (9,022) (5,124)
Investment Shares (1,009) (548) (726) (118) (268) (4)
Net realized gain on investments:
Trust Shares -- -- -- -- -- --
Investment Shares -- -- -- -- -- --
Distributions in excess of
net investment income:
Trust Shares -- -- -- -- -- --
Investment Shares -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Change in net assets from
distributions to shareholders (12,722) (9,157) (1,608) (981) (9,290) (5,128)
- ---------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
Proceeds from sales of shares 655,673 662,563 160,243 113,820 569,508 591,848
Net asset value of shares issued to
shareholders in payment of
dividends
declared 950 564 197 88 231 15
Cost of shares redeemed (686,049) (616,048) (144,135) (104,800) (524,882) (506,245)
- ---------------------------------------------------------------------------------------------------------
Change in net assets from
Fund share transactions (29,426) 47,079 16,305 9,108 44,857 85,618
- ---------------------------------------------------------------------------------------------------------
Change in net assets (29,426) 47,079 16,305 9,108 44,857 85,618
- ---------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 358,860 311,781 60,453 51,345 232,071 146,453
- ---------------------------------------------------------------------------------------------------------
End of period $329,434 $358,860 $76,758 $60,453 $276,928 $232,071
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income
included
in net assets at end of period -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
**$463 net gain as computed for federal tax purposes.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONITOR
SHORT/
INTERMEDIATE
FIXED
MONITOR FIXED INCOME
MONITOR GROWTH MONITOR INCOME MONITOR OHIO INCOME SECURITIES MONITOR MORTGAGE SECURITIES
FUND EQUITY FUND TAX-FREE FUND FUND SECURITIES FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1994 1993 1994 1993 1994 1993 1994 1993 1994 1993 1994
- ----------------------------------------------------------------------------------------------------------------------------------
$ 1,632 $ 1,858 $ 4,915 $ 3,672 $ 2,803 $ 2,491 $ 7,244 $ 6,207 $ 8,618 $ 14,295 $ 7,305
289 92 (290) 382 -- -- (1,801) 330 (10,599) 201** (200)
381 1,931 (7,216) 7,494 (4,412) 1,896 (10,947) 3,431 (21,638) (2,980) (8,318)
- ----------------------------------------------------------------------------------------------------------------------------------
2,302 3,881 (2,591) 11,548 (1,609) 4,387 (5,504) 9,968 (23,619) 11,516 (1,213)
- ----------------------------------------------------------------------------------------------------------------------------------
(1,568) (1,798) (4,805) (3,698) (2,670) (2,414) (7,377) (6,488) (8,326) (13,050) (7,912)
(42) (61) N/A N/A (115) (81) (143) (100) (718) (1,002) N/A
(280) (89) -- (337) -- -- -- (323) -- (878) --
(9) (3) N/A N/A -- -- -- (7) -- (70) N/A
-- (10) -- -- -- -- -- -- (58) -- --
-- -- N/A N/A -- -- -- -- (4) -- N/A
- ----------------------------------------------------------------------------------------------------------------------------------
(1,899) (1,961) (4,805) (4,035) (2,785) (2,495) (7,520) (6,918) (9,106) (15,000) (7,912)
- ----------------------------------------------------------------------------------------------------------------------------------
19,171 34,770 13,781 39,261 17,971 21,273 31,386 35,239 8,288 24,285 34,446
592 545 1,580 880 216 144 3,143 2,265 3,682 3,067 3,221
(27,028) (17,431) (28,184) (7,218) (17,396) (9,826) (15,096) (13,840) (19,816) (20,293) (27,327)
- ----------------------------------------------------------------------------------------------------------------------------------
(7,265) 17,884 (12,823) 32,923 791 11,591 19,433 23,664 (7,846) 7,059 10,340
- ----------------------------------------------------------------------------------------------------------------------------------
(6,862) 19,804 (20,219) 40,436 (3,603) 13,483 6,409 26,714 (40,571) 3,575 1,215
- ----------------------------------------------------------------------------------------------------------------------------------
113,537 93,733 135,618 95,182 62,379 48,896 114,666 87,952 98,994 95,419 123,897
- ----------------------------------------------------------------------------------------------------------------------------------
$ 106,675 $ 113,537 $ 115,399 $ 135,618 $ 58,776 $ 62,379 $ 121,075 $ 114,666 $ 58,423 $ 98,994 $ 125,112
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
$ 28 -- $ 145 $ 35 $ 32 $ 14 $ 99 $ 375 -- $ 426 $ 116
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C>
1993
- ---------
$ 7,354
1,518
424
- ---------
9,296
- ---------
(8,031)
N/A
(1,518)
N/A
--
N/A
- ---------
(9,549)
- ---------
25,894
2,138
(27,282)
- ---------
750
- ---------
497
- ---------
123,400
- ---------
$ 123,897
- ---------
- ---------
$ 723
- ---------
- ---------
</TABLE>
- --------------------------------------------------------------------------------
Statement of Cash Flows
YEAR ENDED DECEMBER 31, 1994
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR
MORTGAGE
SECURITIES
FUND
<S> <C>
- --------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Investment income received $9,758
Payment of operating expenses (757)
Proceeds from sales and maturities of investments 206,032
Purchases of investments (181,319)
Net sales of short-term investments (1,371)
- --------------------------------------------------------------------------------------------------------------------------------
Cash provided by operating activities $32,343
- --------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from Fund share activity (11,195)
Decrease on payable for dollar roll transactions (15,724)
Distributions paid (5,423)
- --------------------------------------------------------------------------------------------------------------------------------
Cash used by financing activities ($32,342)
- --------------------------------------------------------------------------------------------------------------------------------
Increase in cash 1
Cash at beginning of period 0
- --------------------------------------------------------------------------------------------------------------------------------
Cash at end of period $1
- --------------------------------------------------------------------------------------------------------------------------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM
OPERATIONS TO CASH PROVIDED BY OPERATING ACTIVITIES:
Net decrease in net assets resulting from operations (23,619)
Net decrease in investments 54,841
Decrease in interest receivable 483
Increase in receivable for investments sold (4,332)
Increase in payable for investments purchased 5,027
Decrease in payable to advisor (22)
Decrease in accrued expenses (16)
Increase in deferred expenses (19)
- --------------------------------------------------------------------------------------------------------------------------------
Cash provided by operating activities $32,343
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral of the Financial Statements)
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
- --------------------------------------------------------------------------------
Financial Highlights
MONEY MARKET FUNDS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
DIVIDENDS TO
NET ASSET SHAREHOLDERS
VALUE, NET FROM NET NET ASSET
YEAR ENDED BEGINNING INVESTMENT INVESTMENT VALUE, END TOTAL
DECEMBER 31, OF PERIOD INCOME INCOME OF PERIOD RETURN+ EXPENSES
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES
MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
1987* $1.00 0.04 (0.04) $1.00 3.38% 0.49%(a)
1988 $1.00 0.07 (0.07) $1.00 7.45% 0.45%
1989 $1.00 0.09 (0.09) $1.00 9.13% 0.50%
1990 $1.00 0.08 (0.08) $1.00 8.10% 0.47%
1991 $1.00 0.06 (0.06) $1.00 5.85% 0.50%
1992 $1.00 0.03 (0.03) $1.00 3.44% 0.50%
1993 $1.00 0.03 (0.03) $1.00 2.74% 0.51%
1994 $1.00 0.04 (0.04) $1.00 3.86% 0.51%
<CAPTION>
OHIO MUNICIPAL MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
1987** $1.00 0.02 (0.02) $1.00 2.14% 0.50%(a)
1988 $1.00 0.05 (0.05) $1.00 4.89% 0.52%
1989 $1.00 0.06 (0.06) $1.00 6.01% 0.52%
1990 $1.00 0.05 (0.05) $1.00 5.43% 0.60%
1991 $1.00 0.04 (0.04) $1.00 4.07% 0.58%
1992 $1.00 0.03 (0.03) $1.00 2.61% 0.49%
1993 $1.00 0.02 (0.02) $1.00 2.08% 0.45%
1994 $1.00 0.02 (0.02) $1.00 2.41% 0.45%
<CAPTION>
U.S. TREASURY MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
1989*** $1.00 0.02 (0.02) $1.00 1.37% 0.38%(a)
1990 $1.00 0.07 (0.07) $1.00 7.97% 0.44%
1991 $1.00 0.05 (0.05) $1.00 5.66% 0.44%
1992 $1.00 0.03 (0.03) $1.00 3.43% 0.41%
1993 $1.00 0.03 (0.03) $1.00 2.77% 0.40%
1994 $1.00 0.04 (0.04) $1.00 3.79% 0.42%
<CAPTION>
INVESTMENT SHARES
MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
1991**** $1.00 0.04 (0.04) $1.00 3.56% 0.60%(a)
1992 $1.00 0.03 (0.03) $1.00 3.34% 0.60%
1993 $1.00 0.03 (0.03) $1.00 2.63% 0.61%
1994 $1.00 0.04 (0.04) $1.00 3.76% 0.61%
<CAPTION>
OHIO MUNICIPAL MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
1991**** $1.00 0.03 (0.03) $1.00 2.51% 0.67%(a)
1992 $1.00 0.03 (0.03) $1.00 2.51% 0.59%
1993 $1.00 0.02 (0.02) $1.00 1.98% 0.55%
1994 $1.00 0.02 (0.02) $1.00 2.31% 0.55%
<CAPTION>
U.S. TREASURY MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
1993***** $1.00 0.01 (0.01) $1.00 0.54% 0.50%(a)
1994 $1.00 0.04 (0.04) $1.00 3.68% 0.52%
- ------------------------------------------------------------------------------------------------
</TABLE>
* Commenced operations on June 11, 1987.
** Reflects operations for the period from June 10, 1987 (date of initial
public investment) to December 31, 1987.
*** Commenced operations on October 2, 1989.
**** Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
***** Reflects operations for the period from October 19, 1993 (date of initial
public investment) to December 31, 1993.
+ Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET NET ASSETS,
INVESTMENT EXPENSE WAIVER/ END OF PERIOD
INCOME REIMBURSEMENT(B) (000 OMITTED)
<S> <C> <C>
- ----------------------------------------------------
6.76%(a) -- $ 303,798
7.24% -- $ 295,414
8.75% -- $ 327,419
7.79% -- $ 313,436
5.74% -- $ 335,751
3.38% -- $ 291,818
2.70% 0.02% $ 337,276
3.75% 0.02% $ 287,805
4.33%(a) -- $ 72,001
4.76% -- $ 70,370
5.85% -- $ 71,527
5.33% -- $ 72,105
4.00% 0.02% $ 54,873
2.60% 0.14% $ 48,893
2.07% 0.20% $ 40,141
2.40% 0.19% $ 39,624
7.58%(a) 0.05%(a) $ 62,499
7.68% -- $ 149,066
5.52% -- $ 130,302
3.34% -- $ 146,453
2.74% 0.01% $ 231,123
3.76% 0.02% $ 256,538
5.08%(a) -- $ 17,936
3.26% -- $ 19,962
2.60% 0.02% $ 21,583
3.85% 0.02% $ 41,629
3.69%(a) 0.02%(a) $ 425
2.35% 0.14% $ 2,452
1.88% 0.20% $ 20,312
2.30% 0.19% $ 37,134
2.65%(a) 0.16%(a) $ 948
3.66% 0.17% $ 20,390
- ----------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Financial Highlights
EQUITY FUNDS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
DIVIDENDS TO SHAREHOLDERS DISTRIBUTIONS
NET ASSET NET REALIZED AND SHAREHOLDERS FROM NET IN EXCESS
VALUE, NET UNREALIZED TOTAL FROM FROM NET REALIZED GAIN OF NET
YEAR ENDED BEGINNING OF INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT INVESTMENT
DECEMBER 31, PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS INCOME+
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES
GROWTH
<S> <C> <C> <C> <C> <C> <C> <C>
1989* $20.00 0.33 0.59 0.92 (0.31) -- --
1990 $20.61 0.50 (0.47) 0.03 (0.51) -- --
1991 $20.13 0.53 4.74 5.27 (0.54) (0.06) (0.02)
1992 $24.78 0.56 1.36 1.92 (0.55) (0.39) --
1993 $25.76 0.46 0.44 0.90 (0.47) (0.02) --
1994 $26.17 0.39 0.21 0.60 (0.40) (0.07) --
<CAPTION>
INCOME EQUITY
<S> <C> <C> <C> <C> <C> <C> <C>
1989* $20.00 0.50 0.17 0.67 (0.42) -- --
1990 $20.25 0.80 (2.57) (1.77) (0.88) -- --
1991 $17.60 0.71 3.31 4.02 (0.72) -- --
1992 $20.90 0.75 0.79 1.54 (0.74) -- --
1993 $21.70 0.74 1.57 2.31 (0.74) (0.06) --
1994 $23.21 0.88 (1.29) (0.41) (0.87) -- --
<CAPTION>
INVESTMENT SHARES
GROWTH
<S> <C> <C> <C> <C> <C> <C> <C>
1991** $22.79 0.33 2.07 2.40 (0.33) (0.06) (0.02)
1992 $24.78 0.49 1.36 1.85 (0.48) (0.39) --
1993 $25.76 0.40 0.43 0.83 (0.41) (0.02) --
1994 $26.16 0.33 0.22 0.55 (0.33) (0.07) --
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commenced operations on July 3, 1989.
** Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
+ Distributions in excess of net investment income were the result of certain
book and timing differences. These distributions do not represent a return of
capital for federal income tax purposes.
++ Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET NET NET ASSETS, END
TOTAL VALUE, END OF INVESTMENT EXPENSE WAIVER/ OF PERIOD (000
DISTRIBUTIONS PERIOD TOTAL RETURN+ EXPENSES INCOME REIMBURSEMENT(B) OMITTED)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
(0.31) $ 20.61 4.63% 0.95%(a) 3.24%(a) -- $ 24,457
(0.51) $ 20.13 0.16% 1.00% 2.58% -- $ 36,253
(0.62) $ 24.78 26.47% 0.93% 2.33% 0.02% $ 71,451
(0.94) $ 25.76 7.88% 0.91% 2.25% 0.01% $ 90,096
(0.49) $ 26.17 3.53% 0.84% 1.79% 0.04% $ 109,576
(0.47) $ 26.30 2.28% 0.88% 1.52% 0.04% $ 103,463
(0.42) $ 20.25 3.39% 0.92%(a) 5.13%(a) -- $ 35,215
(0.88) $ 17.60 (8.86%) 0.94% 4.43% -- $ 45,468
(0.72) $ 20.90 23.20% 0.93% 3.67% -- $ 79,908
(0.74) $ 21.70 7.49% 0.85% 3.53% 0.01% $ 95,182
(0.80) $ 23.21 10.85% 0.82% 3.29% -- $ 135,618
(0.87) $ 21.93 (1.82%) 0.84% 3.91% -- $ 115,399
(0.41) $ 24.78 9.20% 1.24%(a) 1.88%(a) 0.02%(a) $ 1,078
(0.87) $ 25.76 7.57% 1.16% 2.03% 0.01% $ 3,637
(0.43) $ 26.16 3.25% 1.10% 1.54% 0.04% $ 3,961
(0.40) $ 26.31 2.08% 1.13% 1.27% 0.04% $ 3,212
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL PORTFOLIO
DISTRIBUTIONS TURNOVER RATE
<S> <C>
- --------------
(0.31) 14%
(0.51) 18%
(0.62) 13%
(0.94) 36%
(0.49) 29%
(0.47) 42%
(0.42) 29%
(0.88) 66%
(0.72) 25%
(0.74) 22%
(0.80) 10%
(0.87) 50%
(0.41) 13%
(0.87) 36%
(0.43) 29%
(0.40) 42%
- --------------
</TABLE>
- --------------------------------------------------------------------------------
Financial Highlights
INCOME FUNDS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
DIVIDENDS TO DISTRIBUTIONS TO DISTRIBUTIONS
NET ASSET NET REALIZED AND SHAREHOLDERS SHAREHOLDERS FROM IN EXCESS
VALUE, NET UNREALIZED TOTAL FROM FROM NET NET REALIZED GAIN OF NET
YEAR ENDED BEGINNING OF INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT INVESTMENT
DECEMBER 31, PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS INCOME+
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES
OHIO TAX-FREE
<S> <C> <C> <C> <C> <C> <C> <C>
1988* $20.00 0.22 (0.05) 0.17 (0.22) -- --
1989 $19.95 1.20 0.23 1.43 (1.15) -- --
1990 $20.23 1.11 0.12 1.23 (1.15) -- --
1991 $20.31 1.05 0.74 1.79 (1.05) -- --
1992 $21.05 0.98 0.26 1.24 (0.98) -- --
1993 $21.31 0.96 0.73 1.69 (0.96) -- --
1994 $22.04 0.99 (1.55) (0.56) (0.98) -- --
<CAPTION>
FIXED INCOME SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C>
1989** $20.00 0.60 0.02 0.62 (0.60) -- --
1990 $20.02 1.44 (0.03) 1.41 (1.48) -- --
1991 $19.95 1.43 1.65 3.08 (1.35) (0.10) --
1992 $21.58 1.37 (0.02) 1.35 (1.47) (0.12) (0.02)
1993 $21.32 1.28 0.88 2.16 (1.39) (0.06) --
1994 $22.03 1.28 (2.28) (1.00) (1.34) -- --
<CAPTION>
MORTGAGE SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C>
1992***(c) $10.00 0.63 0.29 0.92 (0.61) (0.04) --
1993(c) $10.27 1.50 (0.28) 1.22 (1.46) (0.10) --
1994(c) $ 9.93 0.89 (3.19) (2.30) (0.93) -- (0.01)
<CAPTION>
SHORT/INTERMEDIATE FIXED INCOME SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C>
1989** $20.00 0.72 0.05 0.77 (0.66) -- --
1990 $20.11 1.50 0.10 1.60 (1.54) -- --
1991 $20.17 1.49 1.14 2.63 (1.51) (0.11) (0.03)
1992 $21.15 1.36 (0.09) 1.27 (1.36) (0.32) (0.11)
1993 $20.63 1.19 0.31 1.50 (1.31) (0.25) --
1994 $20.57 1.13 (1.33) (0.20) (1.23) -- --
<CAPTION>
INVESTMENT SHARES
OHIO TAX-FREE
<S> <C> <C> <C> <C> <C> <C> <C>
1991**** $20.56 0.67 0.51 1.18 (0.69) -- --
1992 $21.05 0.93 0.26 1.19 (0.93) -- --
1993 $21.31 0.90 0.73 1.63 (0.90) -- --
1994 $22.04 0.94 (1.56) (0.62) (0.92) -- --
<CAPTION>
FIXED INCOME SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C>
1991**** $20.17 0.91 1.47 2.38 (0.87) (0.10) --
1992 $21.58 1.33 (0.04) 1.29 (1.37) (0.12) (0.06)
1993 $21.32 1.19 0.92 2.11 (1.33) (0.06) --
1994 $22.04 1.23 (2.29) (1.06) (1.28) -- --
<CAPTION>
MORTGAGE SECURITIES
<S> <C> <C> <C> <C> <C> <C> <C>
1992***(c) $10.00 0.62 0.28 0.90 (0.60) (0.03) --
1993(c) $10.27 1.47 (0.27) 1.20 (1.43) (0.10) --
1994(c) $ 9.94 0.87 (3.19) (2.32) (0.91) -- (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commenced operations on October 18, 1988.
** Commenced operations on July 3, 1989.
*** Reflects operations for the period from June 2, 1992 (date of initial
public investment) to December 31, 1992.
**** Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
+ Distributions in excess of net investment income were the result of certain
book and timing differences. These distributions do not represent a return
of capital for federal income tax purposes.
++ Based on net asset value, which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Per share information presented is based upon the monthly number of shares
outstanding due to large fluctuations in the number of shares outstanding
during the period.
(See Notes which are an integral part of the Financial Statements)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET
VALUE, NET NET ASSETS, END
TOTAL END OF INVESTMENT EXPENSE WAIVER/ OF PERIOD (000
DISTRIBUTIONS PERIOD TOTAL RETURN+ EXPENSES INCOME REIMBURSEMENT(B) OMITTED)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
(0.22) $ 19.95 0.59% 0.88%(a) 5.42%(a) -- $ 15,724
(1.15) $ 20.23 7.37% 0.87% 5.88% -- $ 28,040
(1.15) $ 20.31 6.28% 0.91% 5.59% -- $ 29,886
(1.05) $ 21.05 9.06% 0.90% 5.13% -- $ 38,112
(0.98) $ 21.31 6.04% 0.91% 4.62% -- $ 47,557
(0.96) $ 22.04 8.08% 0.82% 4.39% 0.04% $ 59,541
(0.98) $ 20.50 (2.57%) 0.77% 4.68% 0.04% $ 56,469
(0.60) $ 20.02 3.14% 0.88%(a) 7.14%(a) -- $ 26,502
(1.48) $ 19.95 7.49% 0.82% 7.56% -- $ 38,131
(1.45) $ 21.58 16.13% 0.90% 7.12% -- $ 54,525
(1.61) $ 21.32 6.54% 0.83% 6.49% -- $ 87,107
(1.45) $ 22.03 10.32% 0.74% 5.87% 0.04% $ 112,103
(1.34) $ 19.69 (4.62%) 0.75% 6.26% 0.04% $ 119,117
(0.65) $ 10.27 9.12% 0.58%(a) 10.60%(a) 0.19%(a) $ 90,677
(1.56) $ 9.93 12.10% 0.78% 14.20% 0.04% $ 90,461
(0.94) $ 6.69 (24.59%) 0.88% 11.16% 0.12% $ 54,164
(0.66) $ 20.11 3.91% 0.76%(a) 7.54%(a) -- $ 84,702
(1.54) $ 20.17 8.34% 0.74% 7.59% -- $ 104,218
(1.65) $ 21.15 13.62% 0.78% 7.23% -- $ 101,519
(1.79) $ 20.63 6.25% 0.74% 6.44% -- $ 123,400
(1.56) $ 20.57 7.43% 0.71% 5.70% -- $ 123,897
(1.23) $ 19.14 (0.98%) 0.72% 5.76% -- $ 125,112
(0.69) $ 21.05 5.78% 1.18%(a) 4.74%(a) -- $ 486
(0.93) $ 21.31 5.76% 1.16% 4.36% -- $ 1,339
(0.90) $ 22.04 7.78% 1.07% 4.13% 0.04% $ 2,838
(0.92) $ 20.50 (2.83%) 1.02% 4.43% 0.04% $ 2,307
(0.97) $ 21.58 12.12% 1.19%(a) 6.68%(a) -- $ 135
(1.55) $ 21.32 6.25% 1.08% 6.16% -- $ 845
(1.39) $ 22.04 10.07% 0.99% 5.61% 0.04% $ 2,563
(1.28) $ 19.70 (4.88%) 1.00% 6.01% 0.04% $ 1,958
(0.63) $ 10.27 8.97% 0.83%(a) 10.35%(a) 0.44%(a) $ 4,742
(1.53) $ 9.94 11.94% 1.03% 13.95% 0.29% $ 8,533
(0.92) $ 6.70 (24.72%) 1.13% 10.91% 0.37% $ 4,259
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL PORTFOLIO
DISTRIBUTIONS TURNOVER RATE
<S> <C>
- --------------
(0.22) 76%
(1.15) 86%
(1.15) 5%
(1.05) 13%
(0.98) 3%
(0.96) 2%
(0.98) 12%
(0.60) 19%
(1.48) 7%
(1.45) 21%
(1.61) 15%
(1.45) 7%
(1.34) 23%
(0.65) 50%
(1.56) 154%
(0.94) 91%
(0.66) 24%
(1.54) 20%
(1.65) 50%
(1.79) 41%
(1.56) 24%
(1.23) 38%
(0.69) 13%
(0.93) 3%
(0.90) 2%
(0.92) 12%
(0.97) 21%
(1.55) 15%
(1.39) 7%
(1.28) 23%
(0.63) 50%
(1.53) 154%
(0.92) 91%
- --------------
</TABLE>
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements
DECEMBER 31, 1994
(1) ORGANIZATION
The Monitor Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The Trust consists of seven diversified and two non-diversified portfolios
(herein after individually referred to as the "Fund", or collectively as the
"Funds") at December 31, 1994, as follows:
The Monitor Money Market Fund ("Money Market")
The Monitor Ohio Municipal Money Market Fund
("Ohio Municipal Money Market")*
The Monitor U.S. Treasury Money Market Fund
("U.S. Treasury")
The Monitor Growth Fund ("Growth")
The Monitor Income Equity Fund ("Income Equity")
The Monitor Ohio Tax-Free Fund ("Ohio Tax-Free")*
The Monitor Fixed Income Securities Fund
("Fixed Income")
The Monitor Mortgage Securities Fund
("Mortgage Securities")
The Monitor Short/Intermediate Fixed Income Securities
Fund ("Short/Intermediate Fixed Income")
*non-diversified portfolio
The Growth, Ohio Tax-Free, Fixed Income, Mortgage Securities, Money Market, Ohio
Municipal Money Market and U.S. Treasury Funds each offer two classes of shares
("Trust Shares" and "Investment Shares"). Investment Shares are identical in all
respects to Trust Shares, except that Investment Shares are sold pursuant to
distribution plans ("Plans") adopted in accordance with Rule 12b-1 under
the Act.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund and to the class in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS
The Board of Trustees ("Trustees") has determined that the best method currently
available for valuing portfolio securities of the money market funds (Money
Market, Ohio Municipal Money Market and U.S. Treasury) is amortized cost. The
Trust's use of the amortized cost method to value the money market funds'
portfolio securities is conditioned on their compliance with Rule 2a-7 under the
Act.
Equity securities held by the Growth and Income Equity Funds which are listed on
the New York Stock Exchange or other national securities exchanges are valued at
the last sale price or, if there has been no sale on that day, at the mean
between bid and asked prices. Unlisted equity securities are valued at the
latest bid prices. Bonds and other fixed income securities held by all the Funds
(other than the Mortgage Securities Fund) which may trade on a national
securities exchange and/or over-the-counter are valued at the last sale price on
that day, if available; otherwise, they are valued by an independent pricing
service taking into consideration yield, stability, risk, quality, coupon,
maturity, type of issue, trading characteristics, special circumstances of
security or trading market, and any other factors or market data the independent
pricing service deems relevant in determining valuations for normal
institutional size trading units of debt securities, and does not rely
exclusively on quoted prices.
U.S. government obligations held by the Mortgage Securities Fund are valued at
the mean between the over-the-counter bid and asked prices as furnished by an
independent pricing service. Portfolio securities for which market quotations
are not readily available are valued on the basis of quotations provided by
dealers in such securities.
Short-term securities with remaining maturities of sixty days or less at the
time of purchase may be valued at amortized cost, which approximates fair market
value. Investments in other open-end investment companies are valued at net
asset value.
B. REPURCHASE AGREEMENTS
It is the policy of the Funds to require the custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System, or to have
segregated within the custodian bank's vault, all securities held as collateral
in support of repurchase agreement investments. Additionally, procedures have
been established by the Trust to monitor, on a daily basis, the market value of
each repurchase agreement's underlying collateral to ensure that the value of
collateral at least equals the principal amount of the repurchase agreement,
including accrued interest.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Trust's adviser to be creditworthy pursuant to the guidelines established by
the Trustees. Risks may arise from the potential inability of counterparties to
honor the terms of the repurchase agreement. Accordingly, the Funds could
receive less than the repurchase price on the sale of collateral securities.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income and expenses are accrued daily. Bond premium
and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). For stripped mortgage backed securities, the Mortgage Securities
Fund uses the constant yield method for income recognition purposes.
The amounts shown in the financial statements of the Growth and Mortgage
Securities Funds for net investment income for the year ended December 31, 1993
and 1994, respectively, differ from those determined for tax purposes because of
certain timing differences. This resulted in distributions to shareholders in
excess of net investment income. These distributions did not represent a return
of capital for federal income tax purposes for the year ended December 31, 1993
or 1994, respectively.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the tax nature of
distributions. Amounts as of December 31, 1994, have been reclassified to
reflect an increase/decrease in paid-in capital, accumulated realized gain/loss
and undistributed net investment income as disclosed below. Net investment
income, net realized gains, and net assets were not affected by this change.
<TABLE>
<CAPTION>
UNDISTRIBUTED
NET NET
PAID-IN ACCUMULATED INVESTMENT
CAPITAL GAIN/(LOSS) INCOME
<S> <C> <C> <C>
- -----------------------------------------------------------
Growth ($ 39,120) $ 2,045 $ 37,075
Income
Equity 1 265 (266)
Ohio
Tax-Free (534) -- 534
Fixed Income
Securities (9,257) 9,646 (389)
Short/
Intermed-
iate Fixed
Income (29,544) 29,398 146
- -----------------------------------------------------------
</TABLE>
D. FEDERAL TAXES
It is the Trust's policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of its income. Accordingly, no provisions for federal tax are
necessary.
At December 31, 1994, the Income Equity, Short/Intermediate Fixed Income,
Mortgage Securities and Fixed Income Funds, for federal tax purposes, had
capital loss carry forwards, which will reduce each Fund's taxable income
arising from future net realized gain on investments, if any, to the extent
permitted by the Code, and thus will reduce the amount of the distributions to
shareholders which would otherwise be necessary to relieve each Fund of any
liability for federal tax. Pursuant to the Code, such capital loss carry
forwards will expire as listed below:
<TABLE>
<CAPTION>
1994
CARRY FORWARDS
TO EXPIRE IN
2002
<S> <C>
- -------------------------------------------------------
Income Equity $ 290,275
Short/Intermediate Fixed Income 200,081
Mortgage Securities 10,751,124
Fixed Income 1,801,318
- -------------------------------------------------------
</TABLE>
Additionally, net capital losses of $113,850 attributable to security
transactions of the Mortgage Securities Fund incurred after October 31, 1994,
are treated as arising on January 1, 1995, the first day of the Fund's next
taxable year.
E. DEFERRED EXPENSES
The costs incurred by Mortgage Securities Fund with respect to registration of
its shares in its first fiscal year, excluding the initial expense of
registering its shares, have been deferred and are being amortized using the
straight-line method not to exceed a period of five years from Mortgage
Securities Fund's commencement date.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Funds may engage in when-issued or delayed delivery transactions. The Funds
record when-issued securities on the trade date and maintain security positions
such that sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed delivery
basis are marked to market daily and begin earning interest on the settlement
date.
G. DOLLAR ROLL TRANSACTIONS
The Mortgage Securities Fund enters into dollar roll transactions, with respect
to mortgage securities issued by GNMA, FNMA and FHLMC, in which the Fund loans
mortgage securities to financial institutions and simultaneously agrees to
accept substantially similar securities (same type, coupon and maturity) at a
later date at an agreed upon price. Dollar roll transactions are short-term
financing arrangements which will not exceed twelve months. The Fund will use
the proceeds generated by the transaction to invest in short-term investments
which may enhance the Fund's current yield and total return.
H. OTHER
Investment transactions are accounted for on the trade date.
I. STATEMENT OF CASH FLOWS
A Statement of Cash Flows is presented for the Mortgage Securities Fund due to
its participation in dollar roll transactions, which are considered to be
financing transactions. This statement presents information on all financial
transactions which have been settled through the receipt or disbursement of
cash. The cash amount shown in the Statement of Cash Flows is the amount
reported as cash in the
Fund's Statement of Assets and Liabilities and represents cash on hand in its
custodian bank account and does not include any short-term investments at
December 31, 1994.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust, as amended, permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest ($0.001 par value)
of all the Funds which may be divided into two classes of shares. Transactions
in Fund shares were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31: OHIO MUNICIPAL U.S. TREASURY
(ALL NUMBERS IN THOUSANDS) MONEY MARKET MONEY MARKET MONEY MARKET
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES: 1994 1993 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Shares sold 593,566 627,075 70,571 70,428 535,341 590,853
Shares issued to shareholders in payment of
dividends declared 23 19 5 5 16 11
Shares redeemed (643,060) (581,636) (71,095) (79,185) (509,942) (506,194)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust share transactions (49,471) 45,458 (519) (8,752) 25,415 84,670
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT SHARES:
Shares sold 62,107 35,488 89,672 43,392 34,167 995
Shares issued to shareholders in payment of
dividends declared 927 545 192 83 215 4
Shares redeemed (42,989) (34,412) (73,040) (25,615) (14,940) (51)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment share
transactions 20,045 1,621 16,824 17,860 19,442 948
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions (29,426) 47,079 16,305 9,108 44,857 85,618
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1994: OHIO
(ALL NUMBERS IN THOUSANDS) GROWTH INCOME EQUITY TAX-FREE
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES: SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
Shares sold 718 $18,767 610 $13,781 830 $17,539
Shares issued to shareholders in payment of
dividends declared 21 542 70 1,580 6 127
Shares redeemed (993) (25,809) (1,262) (28,184) (783) (16,544)
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net change resulting from Trust share
transactions (254) (6,500) (582) (12,823) 53 1,122
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT SHARES:
Shares sold 15 404 N/A N/A 20 432
Shares issued to shareholders in payment of
dividends declared 2 50 N/A N/A 4 89
Shares redeemed (47 ) (1,219 ) N/A N/A (40 ) (852 )
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment share
transactions (30 ) (765 ) N/A N/A (16 ) (331 )
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions (284 ) ($7,265 ) (582 ) ($12,823 ) 37 $791
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1993: OHIO
(ALL NUMBERS IN THOUSANDS) GROWTH INCOME EQUITY TAX-FREE
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES: SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
Shares sold 3,948 $33,405 1,742 $39,261 878 $19,091
Shares issued to shareholders in payment of
dividends declared 19 480 39 880 4 80
Shares redeemed (3,277) (16,258) (323) (7,218) (413) (9,016)
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust share
transactions 690 17,627 1,458 32,923 469 10,155
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 54 1,365 N/A N/A 100 2,182
Shares issued to shareholders in payment of
dividends declared 2 65 N/A N/A 3 63
Shares redeemed (46) (1,173) N/A N/A (37) (809)
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment share
transactions 10 257 N/A N/A 66 1,436
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions 700 $17,884 1,458 $32,923 535 $11,591
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHORT/
FOR THE YEAR ENDED DECEMBER 31, 1994: MORTGAGE INTERMEDIATE
(ALL NUMBERS IN THOUSANDS) FIXED INCOME SECURITIES FIXED INCOME
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES: SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,500 $30,808 799 $7,548 1,732 $34,446
Shares issued to shareholders in payment of
dividends declared 148 3,029 378 3,153 164 3,221
Shares redeemed (685) (14,067) (2,188) (16,910) (1,383) (27,327)
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust share
transactions 963 19,770 (1,011 ) (6,209 ) 513 10,340
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT SHARES:
Shares sold 27 578 79 740 N/A N/A
Shares issued to shareholders in payment of
dividends declared 6 114 67 529 N/A N/A
Shares redeemed (50 ) (1,029 ) (368 ) (2,906 ) N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment share
transactions (17 ) (337 ) (222 ) (1,637 ) N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions 946 $19,433 (1,233 ) ($7,846 ) 513 $10,340
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHORT/
FOR THE YEAR ENDED DECEMBER 31, 1993: MORTGAGE INTERMEDIATE
(ALL NUMBERS IN THOUSANDS) FIXED INCOME SECURITIES FIXED INCOME
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRUST SHARES: SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,503 $33,247 1,924 $19,859 1,235 $25,894
Shares issued to shareholders in payment of
dividends declared 99 2,181 222 2,325 102 2,138
Shares redeemed (600) (13,469) (1,865) (19,305) (1,297) (27,282)
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust share
transactions 1,002 21,959 281 2,879 40 750
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 90 1,992 424 4,426 N/A N/A
Shares issued to shareholders in payment of
dividends declared 4 84 71 742 N/A N/A
Shares redeemed (17) (371) (99) (988) N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment share
transactions 77 1,705 396 4,180 N/A N/A
- -------------------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions 1,079 $23,664 677 $7,059 40 $750
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--The Huntington Trust Company, N.A., the Trust's
investment adviser (the "Adviser"), receives for its services an annual
investment advisory fee for each of the Funds at the following annual rates:
Money Market and Ohio Municipal Money Market: 0.30% of the first $500 million of
average daily net assets of each Fund, 0.25% of the next $500 million, and 0.20%
of any amount over $1 billion; Growth and Income Equity: 0.60% of each Fund's
average daily net assets; Ohio Tax-Free, Fixed Income, Mortgage Securities and
Short/Intermediate Fixed Income: 0.50% of each Fund's average daily net assets;
and U.S. Treasury: 0.20% of the Fund's average daily net assets. The Adviser may
voluntarily choose to waive a portion of its fee and reimburse certain operating
expenses of the Trust. The Adviser can terminate its voluntary waiver and
reimbursement at any time at its sole discretion.
SUB-ADVISORY FEE--The Adviser has entered into a sub-advisory agreement with
Piper Capital Management, Inc. (the "Sub-adviser"), pursuant to which the
Sub-adviser assists the Adviser in the purchase, sale and exchange of the
portfolio instruments for the Mortgage Securities Fund. The Sub-adviser receives
from the Adviser an annual fee equal to 0.15 of 1% of the Fund's average daily
net assets.
ADMINISTRATION FEE--Federated Administrative Services ("FAS") provides the Funds
with certain administrative personnel and services. For these services, each of
the Income Equity and the Short/Intermediate Fixed Income Funds pays a fee to
FAS calculated on each Fund's average daily net assets multiplied by a blended
annual rate, based on average aggregate daily net assets of the Trust, as
specified below:
<TABLE>
<CAPTION>
AVERAGE AGGREGATE DAILY
ADMINISTRATIVE FEE NET ASSETS OF THE TRUST
<S> <C>
0.150% on the first $250 million
0.125% on the next $250 million
0.100% on the next $250 million
on assets in excess of $750
0.075% million
</TABLE>
The fee paid by any of the above named Funds during any fiscal year will not be
less than $50,000. For administrative services, each of the Growth, Ohio
Tax-Free, Fixed Income, Mortgage Securities, Money Market, Ohio Municipal Money
Market and U.S. Treasury Funds pays a fee to FAS calculated on each Fund's
average daily net assets multiplied by a blended annual rate, based on average
aggregate daily net assets of the Trust, as specified below:
<TABLE>
<CAPTION>
AVERAGE AGGREGATE DAILY
ADMINISTRATIVE FEE NET ASSETS OF THE TRUST
<S> <C>
0.160% on the first $750 million
0.135% on the next $500 million
on assets in excess of $1.25
0.110% billion
</TABLE>
The fee paid by any of the above named Funds during any fiscal year will not be
less than $75,000. FAS may voluntarily waive or limit its fee at any time.
DISTRIBUTION PLAN--Each Fund offering Investment Shares has adopted a
distribution plan (the "Plan") pursuant to Rule 12b-1 under the Act. The Growth,
Ohio Tax-Free, Fixed Income, Money Market, and the Ohio Municipal Money Market
Funds will reimburse Federated Securities Corp. ("FSC"), the Trust's principal
distributor, from the net assets of the respective Fund for fees FSC paid which
relate to distribution and administrative services with regard to the respective
Fund's Investment Shares, if any. The Mortgage Securities and U.S. Treasury
Funds, have adopted a separate Plan, which provides that the Mortgage Securities
and U.S. Treasury Funds will pay FSC to finance any activity which is
principally intended to result in the sale of their Investment Shares subject to
their Plan. The Plans provide that all of the Funds may incur distribution
expenses of up to 0.25% (except for the Mortgage Securities Fund, which may
incur up to 0.50%) of average daily net assets of each Fund's Investment Shares,
on an annual basis, to reimburse or compensate, as the case may be, FSC. The
Money Market, Ohio Municipal Money Market and the U.S. Treasury Funds incurred
fees of 0.10%.
TRANSFER AND DIVIDEND DISBURSING AGENT, PORTFOLIO ACCOUNTING AND CUSTODY
FEES--Federated Services Company ("FServ") serves as transfer and dividend
disbursing agent for the Funds. The FServ fee is based on the size, type and
number of accounts and transactions made by shareholders.
The Huntington Trust Company ("Huntington") provides certain accounting and
recordkeeping services with respect to the Funds' portfolio of investments, with
the exception of the Mortgage Securities Fund, for which American Data Services,
Inc. ("ADS") provides these services. Huntington and ADS receive an annual fee
based on the level of each Fund's average daily net assets.
Huntington is the custodian of the Fund's investments and other assets. The fee
is based on the level of each Fund's average daily net assets.
ORGANIZATIONAL EXPENSES--The Mortgage Securities Fund's organizational expenses
($47,922) were initially borne by FAS. The Fund has agreed to pay FAS for the
organizational expenses borne initially by FAS during the five year period
following April 24, 1992, the date the Fund became effective. For the fiscal
year ended December 31, 1994, the Mortgage Securities Fund reimbursed FAS $8,822
in organizational expenses.
During the fiscal year ended December 31, 1994 the Ohio Tax-Free Fund engaged in
purchase and sale transactions with another Fund advised by the Adviser pursuant
to Rule 17a-7 of the Act, amounting to $2,731,978 and $7,718,007 respectively.
Certain Officers of the Trust are Officers and Directors of FAS, FSC and FServ.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
fiscal year ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
INCOME OHIO
GROWTH EQUITY TAX-FREE
<S> <C> <C> <C>
- ------------------------------------------------------
Purchases $43,241,892 $59,636,234 $8,326,648
Sales $46,561,395 $59,695,640 $6,906,106
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHORT/
FIXED MORTGAGE INTERMEDIATE
INCOME SECURITIES FIXED INCOME
<S> <C> <C> <C>
- ---------------------------------------------------------
Purchases $44,892,687 $ 90,775,590 $ 60,003,170
Sales $26,393,189 $108,651,653 $ 47,034,848
- ---------------------------------------------------------
</TABLE>
(6) INVESTMENT CONCENTRATION
The Ohio Tax-Free and Ohio Municipal Money Market Funds invest a substantial
portion of their assets in obligations and notes issued by the State of Ohio,
political subdivisions thereof, and agencies, instrumentalities, authorities of
districts of both the State and its political subdivisions. Such issues must
have been rated A or better by Moody's Investors Service, Inc. or by Standard &
Poor's Corporation, for the Ohio Tax-Free Fund, or A-2, P-2 for the Ohio
Municipal Money Market Fund or, if not rated, of equivalent quality as
determined by the Funds' investment adviser.
If there should be a default or other financial crisis relating to the State of
Ohio, an Ohio municipality or an agency or instrumentally of the State or the
municipality, the market value and marketability of the Ohio Municipal bonds in
the Ohio Municipal Money Market and Ohio Tax-Free Funds' portfolios and the
interest income to the two Funds could be adversely affected.
In order to reduce the credit risk associated with such factors, at December 31,
1994, 37.8% and 73.0% of the securities in the Ohio Tax-Free and the Ohio
Municipal Money Market Funds' portfolios of investment were backed by letters of
credit or bond insurance of various financial institutions and financial
guaranty assurance agencies. The value of investments insured by or supported
(backed) by a letter of credit for any one institution or agency did not exceed
10.5% and 6.5%, respectively, of each Funds' total investments.
- --------------------------------------------------------------------------------
Report of Independent Accountants
TO THE SHAREHOLDERS AND TRUSTEES OF
THE MONITOR FUNDS:
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments (except for the credit ratings by Moody's and
S&P), and the related statements of operations, of cash flows (for the Monitor
Mortgage Securities Fund) and of changes in net assets and the financial
highlights, present fairly, in all material respects, the financial position of
each of the nine funds constituting The Monitor Funds (the "Trust") at December
31, 1994, and the results of each of their operations, cash flows, the changes
in each of their net assets and the financial highlights for the periods
indicated in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1994 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where confirmations from brokers
were not received, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Columbus, Ohio
February 20, 1995
- --------------------------------------------------------------------------------
Trustees Officers
<TABLE>
<S> <C>
David S. Schoedinger Edward C. Gonzales
John M. Shary PRESIDENT AND TREASURER
William R. Wise Ronald M. Petnuch
VICE PRESIDENT AND ASSISTANT TREASURER
Joseph M. Huber
SECRETARY
Karen M. Brownlee
ASSISTANT SECRETARY
</TABLE>
MUTUAL FUNDS ARE NOT BANK DEPOSITS OR OBLIGATIONS, ARE NOT GUARANTEED BY ANY
BANK, AND ARE NOT
INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT INSURANCE
CORPORATION,
THE FEDERAL RESERVE BOARD, OR ANY OTHER GOVERNMENT AGENCY. INVESTMENT IN MUTUAL
FUNDS INVOLVES INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
ALTHOUGH MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00
PER SHARE, THERE IS NO ASSURANCE THAT THEY WILL BE ABLE TO DO SO.
This report is authorized for distribution to prospective investors only when
preceded
or accompanied by the Funds' prospectus, which contains facts concerning the
Funds' objectives and policies, management fees, expenses and other information.
[Logo]
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
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2012801 (2/95)
APPENDIX
A. The graphic presentation here displayed consists of a line graph
titled "Growth of $10,000 Invested in The Monitor Growth Fund-Investment
and Trust Shares." The corresponding components of the line graph are
listed underneath.
The Monitor Growth Fund-Trust Shares is represented by a solid
gray line. The Standard & Poor's Composite Stock Price 500 Index (the
"S&P 500") is represented by a solid green line. The line graph is a
visual representation of a comparison of change in value of a
hypothetical $10,000 investment in The Monitor Growth Fund-Trust Shares
and the S&P 500. The "x" axis reflects computation periods from the
start of performance of the Trust Shares (July 3, 1989) to December 31,
1994. The "y" axis reflects the cost of the investment, ranging from
$8,000 to $18,000. The right margin reflects the ending value of the
hypothetical investment in the Fund-Trust Shares as compared to the S&P
500. The ending values are $15,142 and $17,121, respectively.
The Monitor Growth Fund-Investment Shares is represented by a
broken gray line. The Standard & Poor's Composite Price 500 Index (the
"S&P 500") is represented by a broken green line. The line graph is a
visual representation of a comparison of change in value of a
hypothetical $10,000 investment in The Monitor Growth Fund-Investment
Shares and the S&P 500. The "x" axis reflects computation periods from
the start of performance of the Investment Shares (May 1, 1991) to
December 31, 1994. The "y" axis reflects the cost of the investment,
ranging from $8,000 to $18,000. The right margin reflects the ending
value of the hypothetical investment in the Fund-Investment Shares as
compared to the S&P 500. The ending values are $11,886 and $13,613,
respectively.
B. The graphic presentation here displayed consists of a line graph
titled "Growth of $10,000 Invested in The Monitor Income Equity Fund-
Trust Shares." The corresponding components of the line graph are
listed underneath. The Monitor Income Equity Fund is represented by a
solid gray line. The Standard & Poor's Composite Stock Price 500 Index
(the "S&P 500") is represented by a solid green line. The line graph is
a visual representation of a comparison of change in value of a
hypothetical $10,000 investment in The Monitor Income Equity Fund and
the S&P 500. The "x" axis reflects computation periods from the start
of performance (July 3, 1989) to December 31, 1994. The "y" axis
reflects the cost of the investment, ranging from $8,000 to $18,000.
The right margin reflects the ending value of the hypothetical
investment in the Fund as compared to the S&P 500. The ending values
are $13,581 and $17,121, respectively.
C. The graphic presentation here displayed consists of a line graph
titled "Growth of $10,000 Invested in The Monitor Ohio Tax-Free Fund-
Investment and Trust Shares." The corresponding components of the line
graph are listed underneath.
The Monitor Ohio Tax-Free Fund-Trust Shares is represented by a
solid bold gray line. The Lehman Brothers State General Obligation
Index (the "LBSGO") is represented by a solid green line. The Lehman
Brothers 5 Year General Obligation Index (the "LB5GO") is represented by
a broken gray line. The Lipper Short Municipal Debt Fund Average (the
"LSMD") is represented by a dotted green line. The Lipper Intermediate
Municipal Debt Fund Average (the "LIMD") is represented by a solid-
broken gray line. The line graph is a visual representation of a
comparison of change in value of a hypothetical $10,000 investment in
The Monitor Ohio Tax-Free Fund-Trust Shares and the LBSGO, LB5GO, LSMD,
and LIMD. The "x" axis reflects computation periods from the start of
performance of the Trust Shares (October 18, 1988) to December 31, 1994.
The "y" axis reflects the cost of the investment, ranging from $8,000 to
$16,000. The right margin reflects the ending value of the hypothetical
investment in the Fund-Trust Shares as compared to the LBSGO, LB5GO,
LSMD, and LIMD. The ending values are $13,978, $14,638, $14,937,
$13,942 and $14,697, respectively.
The Monitor Ohio Tax-Free Fund-Investment Shares (4% sales load)
is represented by a solid bold gray line. The Monitor Ohio Tax-Free
Fund-Investment Shares (2% sales load) is represented by a solid bold
green line. The Lehman Brothers State General Obligation Index (the
"LBSGO") is represented by a solid green line. The Lehman Brothers 5
Year General Obligation Index (the "LB5GO") is represented by a solid-
broken gray line. The Lipper Short Municipal Debt Fund Average (the
"LSMD") is represented by a broken green line. The Lipper Intermediate
Municipal Debt Fund Average (the "LIMD") is represented by a broken gray
line. The line graph is a visual representation of a comparison of
change in value of a hypothetical $10,000 investment in The Monitor Ohio
Tax-Free Fund-Investment Shares and the LBSGO, LB5GO, LSMD, and LIMD.
The "x" axis reflects computation periods from the start of performance
of the Investment Shares (May 1, 1991) to December 31, 1994. The "y"
axis reflects the cost of the investment, ranging from $8,000 to
$16,000. The right margin reflects the ending value of the hypothetical
investment in the Fund-Investment Shares (4% and 2% sales load) as
compared to the LBSGO, LB5GO, LSMD, and LIMD. The ending values are
$11,254, $11,489, $12,308, $12,371, $11,886 and $12,284, respectively.
D. The graphic presentation here displayed consists of a line graph
titled "Growth of $10,000 Invested in The Monitor Fixed Income
Securities Fund-Investment and Trust Shares." The corresponding
components of the line graph are listed underneath.
The Monitor Fixed Income Securities Fund-Trust Shares is
represented by a solid bold gray line. The Lehman Brothers
Government/Corporate Bond Index (the "LBGCB") is represented by a broken
green line. The Lipper Intermediate Investment Grade Debt Fund Average
(the "LIIGDF") is represented by a broken gray line. The line graph is
a visual representation of a comparison of change in value of a
hypothetical $10,000 investment in The Monitor Fixed Income Securities-
Trust Shares and the LBGCB and LIIGDF. The "x" axis reflects
computation periods from the start of performance of the Trust Shares
(July 3, 1989) to December 31, 1994. The "y" axis reflects the cost of
the investment, ranging from $8,000 to $16,000. The right margin
reflects the ending value of the hypothetical investment in the Fund-
Trust Shares as compared to the LBGCB and LIIGDF. The ending values are
$14,435, $15,163, and $14,517, respectively.
The Monitor Fixed Income Securities Fund-Investment Shares (4%
sales load) is represented by a solid green line. The Monitor Fixed
Income Securities Fund-Investment Shares (2% sales load) is represented
by a broken gray line. The Lehman Brothers Government/Corporate Bond
Index (the "LBGCB") is represented by a broken green line. The Lipper
Intermediate Investment Grade Debt Fund Average (the "LIIGDF") is
represented by a dotted gray line. The line graph is a visual
representation of a comparison of change in value of a hypothetical
$10,000 investment in The Monitor Fixed Income Securities Fund-
Investment Shares and the LBGCB and LIIGDF. The "x" axis reflects
computation periods from the start of performance of the Investment
Shares (May 1, 1991) to December 31, 1994. The "y" axis reflects the
cost of the investment, ranging from $8,000 to $16,000. The right
margin reflects the ending value of the hypothetical investment in the
Fund-Investment Shares (4% and 2% sales load) as compared to the LBGCB
and LIIGDF. The ending values are $11,981, $12,231, $12,889, and
$12,536, respectively.
E. The graphic presentation here displayed consists of a line graph
titled "Growth of $10,000 Invested in The Monitor Mortgage Securities
Fund-Investment and Trust Shares." The corresponding components of the
line graph are listed underneath. The Monitor Mortgage Securities Fund-
Trust Shares is represented by a solid green line. The Monitor Mortgage
Securities Fund-Investment Shares is represented by a solid gray line.
The Merrill Lynch 3-5 Year U.S. Treasury Index (the "ML3-5YUST") is
represented by a broken gray line. The Lipper U.S. Mortgage Fund
Average (the "LUSMF") is represented by a broken green line. The line
graph is a visual representation of a comparison of change in value of a
hypothetical $10,000 investment in The Monitor Mortgage Securities Fund-
Trust and Investment Shares and the ML3-5YUST and LUSMF. The "x" axis
reflects computation periods from the start of performance of both Trust
and Investment Shares (June 2, 1992) to December 31, 1994. The "y" axis
reflects the cost of the investment, ranging from $8,000 to $14,000.
The right margin reflects the ending value of the hypothetical
investment in the Fund-Trust and Investment Shares as compared to the
ML3-5YUST and LUSMF. The ending values are $10,803, $11,247, $9,062,
and $9,299, respectively.
F. The graphic presentation here displayed consists of a line graph
titled "Growth of $10,000 Invested in The Monitor Short/Intermediate
Fixed Income Securities Fund-Trust Shares." The corresponding
components of the line graph are listed underneath. The Monitor
Short/Intermediate Fixed Income Securities Fund is represented by a
solid gray line. The Lehman Intermediate Government/Corporate Index
(the "LIGC") is represented by a solid green line. The Merrill Lynch 1-
5 Year Composite Treasury Index (the "ML1-5YCT") is represented by a
broken gray line. The Lipper Short-Term Investment Grade Debt Fund
Average (the "LSTIGDF") is represented by a broken green line. The line
graph is a visual representation of a comparison of change in value of a
hypothetical $10,000 investment in The Monitor Short/Intermediate Fixed
Income Securities Fund and the LIGC, ML1-5YCT and LSTIGDF. The "x" axis
reflects computation periods from the start of performance (July 3,
1989) to December 31, 1994. The "y" axis reflects the cost of the
investment, ranging from $8,000 to $16,000. The right margin reflects
the ending value of the hypothetical investment in the Fund as compared
to the LIGC, ML1-5YCT and LSTIGDF. The ending values are $14,455,
$14,967, $14,730, and $13,751, respectively.
