<PAGE>
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, 1995
<PAGE>
Message from the Investment Manager
Dear Shareholder,
I am pleased to present the December 31, 1995 Annual Report to Shareholders of
The Monitor Funds (the "Trust").
1995 was a remarkably favorable year for investors in equities and fixed
income securities. Buoyed by substantial improvements in corporate earnings,
as well as continued evidence that inflation is well in hand, domestic stock
and fixed income markets moved sharply higher. As a result, equity markets
surpassed previously obtained highs by a third and more as measured by many
indices. Fixed income markets experienced substantial recoveries from damage
that had been done in the preceding year.
As we look to 1996, it becomes evident that the economy has begun to
experience a considerable slowing in its rate of growth in recent months. The
Federal Reserve has already reduced the Fed Funds rate once as of this
writing. It is clear that they are anticipating the possibility of a slowdown
sufficient to produce at least a mild recession. It is also clear that both
automobile and housing industry activities have slowed. As these industries
are so substantial a portion of our economy, this trend is likely to have some
dampening effect on economic activity during the balance of the year. Caution
would be a reasonable byword for 1996.
To our benefit, however, we are still living in a relatively peaceful economic
environment, with inflation well under control, and a political scene
dominated by debates on balanced budgets and taxation reduction. This overall
climate has propelled the markets to the levels they currently enjoy.
We recommend that you take a moment to review the Management Discussion and
Analysis portion of this report. A graph comparison is included for each
fluctuating net asset value fund, which charts the path of your investment
compared with standard indices and/or averages. Also included is a portfolio
manager's discussion of the year's performance, market activity and outlook,
and fund strategy.
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. We continuously
strive to provide quality investment management services for our customers.
Norman A. Jacobs President and C.E.O. The Huntington Trust Company, N.A.
Investment Manager Columbus, Ohio
1
<PAGE>
The Monitor Funds
ANNUAL REPORT FOR FISCAL YEAR ENDED DECEMBER 31, 1995
MANAGEMENT DISCUSSION AND ANALYSIS
---------------------------------------------------------------------------
MONITOR GROWTH FUND
At the beginning of 1995, growth stocks continued to distinguish
themselves versus their cyclical counterparts. Technology stocks were big
winners in the first quarter, and remained market leaders in the second
quarter. Near the end of the year, the performance of these stocks was
mixed, but overall, their gains for the year were impressive. We have
under-weighted the technology group in recent months, believing that many
stocks were overvalued and would under perform. During the year, we made
substantial additions to existing holdings within the Fund including Crown
Cork & Seal, Colgate Palmolive and Premier Industrial. New issues
purchased in the Fund during the year include Sigma Aldrich, Wm. Wrigley,
American Express and Home Depot.
For the fiscal year ended 12/31/95, the Fund's Trust Shares total return
amounted to 30.75%*. While this performance was very positive in absolute
terms, it compares with 37.57% for the S&P 500. The shortfall is explained
in part by the Fund's underweighting in the very strong technology and
finance sectors due to overvaluation concerns. The Monitor Growth Fund's
Investment performance was closer to the Lipper Growth Fund Index, which
was up 31.48%.
Our outlook for 1996 is for a more volatile stock market as the economy
slows and corporate profits flatten and possibly decline modestly.
Corporate revenues and profits are coming under pressure from a lack of
unit growth and price increases, as well as reduced cost cutting
opportunities. Equity prices continue to be supported, however, by
declining interest rates, strong cash flows into stocks and bonds and
reasonable valuations. Growth stocks, in particular, stand to benefit from
lower interest rates and their relative immunity to a more difficult
economic environment. The Fund remains underweighted in technology stocks
but we expect to take advantage of opportunities to re-establish higher
exposures to the better technology companies at attractive valuations
during the course of the year. All in all, we are cautiously optimistic
about the prospects for the stock market and believe the Fund is well
positioned to benefit.
Philip H. Farrington James Gibboney, Jr. Thomas Sauer Portfolio Managers
* Performance quoted represents past performance. Investment return and
principal will fluctuate, so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
2
<PAGE>
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, 1995, 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, 1995, compared to the Standard & Poor's Composite Stock
Price 500 Index ("S&P 500")+.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR 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.
+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.
3
<PAGE>
The Monitor Funds
THE MONITOR INCOME EQUITY FUND
The Monitor Income Equity Fund participated meaningfully in the stock
market's advance in the first quarter of the year, posting a total return
of 7.05%, even though this portfolio was defensively positioned for the
entire period with a 15% weighting in short maturity U.S. Treasury
obligations. Diversification has served the Fund well throughout the year.
Although the Fund's high yield bias dictated that we not invest heavily in
some of the faster paced arenas such as technology, solid dividend
increases by steady performers such as Worthington Industries, DuPont,
Monsanto and Chemical Bank benefited the shareholder. In the third
quarter, the Fund's financial sector did fairly well as a new round of
bank mergers moved the entire group to higher valuation levels. In
contrast, by the fourth quarter, the financial sector made little upside
progress, but the Fund benefitted from strength in the cyclical stock
sector, particularly in energy issues. Monthly dividend payments have
remained steady, resulting in a full year dividend of 96 cents per share,
well ahead of 1994's payout of 87 cents per share.
For the fiscal year ending 12/31/95, the Monitor Income Equity Fund's
total return was 29.26%*. This compares with 37.57% for the S&P 500. This
Fund' high yield bias caused it to lag the S&P, due in large part to its
limited exposure to the technology sector.
Looking forward to 1996, our strategy will be to continue to provide
shareholders with the same relative high yield and modest dividend growth
that have characterized the Fund for the past four years. While attempting
to keep portfolio turnover low, we plan to gradually swap out of some of
our lower-yielding issues and replace such sales with out-of-favor
securities that offer higher current yields. Beyond that, we plan to hold
the majority of the current portfolio for their dividend increases.
James M. Buskirk Chief Investment Officer Portfolio Manager
* 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.
4
<PAGE>
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, 1995, compared to the Standard
& Poor's Composite Stock Price 500 Index ("S&P 500")+.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR 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.
5
<PAGE>
The Monitor Funds
THE MONITOR OHIO TAX-FREE FUND
For the fiscal year ended December 31, 1995, the total return of the
Lehman Brothers State General Obligation Index was 16.25%, while the total
return of the Monitor Ohio Tax Free Fund was 11.35%* for Trust Shares and
8.87%*+ for Investment Shares. However, the Lehman Brothers State General
Obligation Index is not subject to the portfolio maturity, geographic, or
credit quality restrictions of the Fund. The Fund must have an average
portfolio maturity of four to seven years, and may not purchase any
security with a maturity of greater than fifteen years. Furthermore, under
normal market conditions at least 80% of the Fund's net assets will be
invested in Ohio tax-exempt securities rated in the top three categories
or of comparable credit quality. Accordingly, we believe that the Lehman
Brothers State Five Year General Obligation Index provides a better
benchmark for the Fund. This index had a total return for the fiscal year
ended December 31, 1995 of 11.62%.
During the next year, we will look to sell securities maturing in the 10
to 15 year range. This strategy will reduce the risk of a large cash
inflow at one time and help to keep the average life of the Fund at about
six years. Historically, the supply of new municipals is light in the
first quarter of the year. But with interest rates at historic lows, we
should see new issue volume increase as municipalities refund outstanding
debt which carries a higher interest rate.
William G. Doughty Portfolio Manager
* 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 oringal cost.
+ Total return quoted reflects all applicable sales loads.
6
<PAGE>
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, 1995, 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, 1995,
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")++.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR 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.
***Total return quoted reflects all applicable sales loads.
+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 that Lipper Analytical Services,
Inc. has determined belong in 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.
7
<PAGE>
The Monitor Funds
THE MONITOR FIXED INCOME SECURITIES FUND
As a result of the sharp drop in interest rates in 1995, the Fund
produced the largest total rate of return in its six year history. Just as
in 1991, when rates also declined dramatically, this performance should be
viewed as a pleasant reward, but not necessarily as a repeatable event.
After three straight years of rates moving over two full percentage points
from peak to trough, we expect more stability in 1996. Less volatility
would be more the historical norm for interest rate movements, would be a
more positive environment for the overall economy, and is more in keeping
with what bond investors should expect. Bonds, by their very nature, are
intended to provide a steady source of income and a return of original
principal at maturity. A total rate of return markedly higher or lower
than the income or yield generated is generally transient.
For the fiscal year ended 12/31/95, the Monitor Fixed Income Securities
Fund Trust Shares had a total return of 17.95%* compared with 19.24% for
the Lehman Brothers Government Corporate Bond Index and 16.62% for the
Lipper Intermediate Investment Grade Debt Fund Average. In a flat or
falling interest rate environment, we would expect the Fund to slightly
underperform the Lehman Index, and more closely track the Lipper index.
This is attributable to the longer maturities and lower credit quality of
the Lehman index versus the constraints for the Fund.
Stephen M. Geis Portfolio Manager
* Performance quoted represents past performances. 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.
8
<PAGE>
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, 1995, 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, 1995, compared to the
Lehman Brothers Government/Corporate Bond Index ("LBGCB")+ and the Lipper
Intermediate Investment Grade Debt Fund Average ("LIIGDF")++.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR 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.
***Total return quoted reflects all applicable sales loads.
+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 that Lipper Analytical Services, Inc. has determined
belong in that category, and is 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.
9
<PAGE>
The Monitor Funds
THE MONITOR MORTGAGE SECURITIES FUND
For the fiscal year ended December 31, 1995, the Fund's Trust Shares
total return was 31.1%*, assuming that all distributions were reinvested.
This compares against 16.1% for the Merrill Lynch 3-5 year Treasury Index
and 16.23% for the Lipper Analytical Services U.S. Mortgage Funds Average.
In the future, the Lehman Brothers Mortgage Index will be used as the
Fund's market benchmark replacing the Merrill Lynch 3-5 year Treasury
Index.
The Fund's favorable performance in 1995 reflected holdings in
securities with characteristics different from the Lehman Brothers
Mortgage Index. These security types also contributed to the disappointing
performance in 1994. Looking ahead, the Fund's investment manager expects
to further reduce the Fund's volatility through sales of inverse interest-
only and inverse floating mortgage-backed derivative securities with
reinvestment of proceeds into issues with less volatile characteristics,
generally fixed coupon mortgage pass-through securities issued by
Government sponsored entities.
Worth Bruntjen Marijo Goldstein Piper Capital Management Sub-Advisor for
Monitor Mortgage Securities Fund
* 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.
10
<PAGE>
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,
1995, compared to the Merrill Lynch 3-5 Year U.S. Treasury Index ("ML3-
5YUST")+, Lipper U.S. Mortgage Fund Average ("LUSMF")++ and the Lehman
Mortgage-Backed Index ("LMI")+.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR 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.
+The ML3-5YUST and LMI 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. This index is
unmanaged.
++The LUSMF represents the average of the total returns reported by all
of the mutual funds that Lipper Analytical Services, Inc. has determined
belong in that category, and is 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.
11
<PAGE>
The Monitor Funds
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
The Fund recorded the second best total return in its six-year history
in calendar year 1995. As in 1991, this excellent performance came as the
result of a sharp decline in interest rates. We would expect rates to
exhibit much less fluctuation in 1996. Under this scenario, bond investors
could expect to earn the coupon or yield on their investments, but would
not experience higher/(lower) total rates of return due to unrealized
appreciation/(depreciation) of the market value of the bonds because of
interest rates moving to lower/(higher) levels.
With respect to the Fund's credit quality, average maturity, allocation
between bond market sectors, and diversification, we will most likely
maintain the past and present course. Credit quality has, and will
continue to be our principal focus. The vast majority of the bonds in the
portfolio are U.S. Treasuries and corporate bonds rated single A or
higher. Given our laddered distribution of maturities, and our
unwillingness to engage in interest rate timing, the average maturity of
the Fund deviates only modestly from a three year target. Allocation
between bond market sectors refers to the relative attractiveness of
Treasuries, corporates, and mortgage-backed securities to one another.
Although corporate spreads seem low by historical measures, for this short
maturity fund we think they represent good value. Diversification, of
course, refers to the concentration of assets in one company or industry.
It is a hallmark of investing and, although the SEC regulations would
permit far more concentration, we choose to have much broader
diversification.
For the fiscal year ended 12/31/95, the Monitor Short/Intermediate Fixed
Income Securities Fund's total return was 12.81%*. This compares with
10.84% for the Lipper Short Term Investment Grade Debt Fund Index, 12.83%
for the Merrill Lynch 1-5 year Composite Treasury Index and 15.31% for the
Lehman Intermediate Government/Corporate Index. In a flat or falling
interest rate environment, we would expect the Fund to slightly
underperform the Lehman Index, but more closely track the Merrill and
Lipper indices. This is attributable to the longer maturities and lower
credit quality of the Lehman index versus the constraints for the Fund.
Stephen M. Geis Portfolio Manager
* 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.
12
<PAGE>
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,
1995, compared to the Lehman Intermediate Government/Corporate Index
("LIGC")+ and the Merrill Lynch 1-5 Year Composite Treasury Index ("ML1-
5YCT")+ and the Merrill Lynch 1-5 Year Government/Corporate Index (MLI-
5YGC)+ and the Lipper Short-Term Investment Grade Debt Fund Average
("LSTIGDF")++.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT WHEN SHARES ARE
REDEEMED, THEY MAY BE WORTH MORE OR LESS THAN THEIR 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, ML1-5YCT and MLI-5YGC 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 that Lipper Analytical Services, Inc. has determined
belong in that category, and is 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.
13
<PAGE>
Portfolios of Investments
------------------------------------
THE MONITOR MONEY MARKET FUND December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------
<C> <S> <C>
(A) COMMERCIAL PAPER - 86.4%
- ----------------------------------------------
AGRICULTURE - 2.6%
$10,000,000 Cargill Inc.,
5.64-5.65%,
1/18/96-2/2/96 $9,961,593
- ----------------------------------------------
AUTOMOTIVE - 2.6%
10,000,000 Daimler Benz
North America,
5.66-5.68%,
1/8/96-2/5/96 9,966,964
- ----------------------------------------------
BANKING - 5.1%
5,000,000 National City
Credit Corp.,
5.57%, 3/1/96 4,953,583
5,000,000 Royal Bank of
Canada, 5.70%,
1/22/96 4,983,375
10,000,000 Toronto Dominion
Holdings, 5.62-
5.67%, 1/30/96-
2/20/96 9,938,135
- ----------------------------------------------
19,875,093
- ----------------------------------------------
BANKING & FINANCE - 7.7%
10,000,000 American Express
Credit Corp.,
5.53-5.74%,
1/29/96-3/26/96 10,000,000
5,000,000 C.I.T. Group
Holding, 5.63%,
2/8/96 4,970,286
10,000,000 Ford Motor
Credit Corp.,
5.73-5.75%,
1/25/96-2/9/96 10,000,000
5,000,000 G.E. Capital
Corp., 5.54%,
2/22/96 5,000,000
- ----------------------------------------------
29,970,286
- ----------------------------------------------
BASIC INDUSTRY - 8.2%
10,000,000 Hanson Finance
(U.K.) PLC,
5.63-5.69%,
1/9/96-2/15/96 9,958,490
10,000,000 Minnesota Mining
MFG., 5.50-
5.63%, 1/19/96-
3/14/96 9,930,161
6,000,000 Schering Corp.,
5.66%, 1/12/96 5,989,623
6,000,000 Siemens Corp.,
5.50%, 2/23/96 5,951,417
- ----------------------------------------------
31,829,691
- ----------------------------------------------
BUSINESS EQUIPMENT & SERVICES - 6.4%
15,000,000 Hewlett Packard
Inc., 5.60-
5.66%, 1/4/96-
2/13/96 14,955,456
10,000,000 Xerox Corp.,
5.62-5.65%,
1/24/96-2/6/96 9,953,851
- ----------------------------------------------
24,909,307
- ----------------------------------------------
BUSINESS SERVICES - 3.8%
10,000,000 Dun & Bradstreet
Corp., 5.50-
5.60%, 2/27/96-
4/9/96 9,880,042
5,000,000 Knight Ridder
Inc., 5.70%,
1/26/96 4,980,208
- ----------------------------------------------
14,860,250
- ----------------------------------------------
CHEMICALS - 8.0%
14,900,000 Akzo Nobel Inc.,
5.58-5.75%,
1/29/96-3/11/96 14,793,178
5,000,000 du Pont (E.I.)
de Nemours,
5.63%, 2/7/96 4,971,068
6,430,000 Monsanto Co.,
5.68%, 1/31/96 6,399,565
5,000,000 U.S. Borax
Chemical,
5.66%, 1/23/96 4,982,705
- ----------------------------------------------
31,146,516
- ----------------------------------------------
COMMUNICATION - 2.6%
5,000,000 Ameritech Corp.,
5.48%, 3/13/96 4,945,200
5,000,000 AT & T Corp.,
5.70%, 1/5/96 4,996,833
- ----------------------------------------------
9,942,033
- ----------------------------------------------
CONSUMER PRODUCTS - 2.5%
5,000,000 Pacific Dunlop
Ltd., 5.48%,
3/22/96 4,938,350
5,000,000 Proctor & Gamble
Corp., 5.57%,
3/7/96 4,948,942
- ----------------------------------------------
9,887,292
- ----------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------------------
<C> <S> <C>
FINANCE - 3.8%
$10,000,000 Goldman Sachs
Co., 5.55-
5.65%, 2/26/96-
3/6/96 $9,905,951
5,000,000 Merrill Lynch
Co., 5.66%,
2/12/96 4,966,983
- ---------------------------------------------------
14,872,934
- ---------------------------------------------------
FINANCE-COMMERCIAL - 5.1%
5,000,000 AT&T Capital
Corp., 5.70%,
1/23/96 4,982,583
5,000,000 IBM Credit
Corp., 5.58%,
3/4/96 4,951,175
10,000,000 Pitney Bowes
Credit, 5.64-
5.67%, 1/16/96-
1/17/96 9,975,654
- ---------------------------------------------------
19,909,412
- ---------------------------------------------------
FOOD & BEVERAGES - 2.5%
10,000,000 Coca Cola Inc.,
5.50-5.52%,
3/11/96 9,892,861
- ---------------------------------------------------
FOOD PRODUCTS - 4.9%
5,000,000 Campbell Soup
Co., 5.65%,
1/3/96 4,998,431
14,000,000 Golden Peanut
Co., 5.55-
5.65%, 2/9/96-
3/22/96 13,869,919
- ---------------------------------------------------
18,868,350
- ---------------------------------------------------
INSURANCE - 6.4%
5,000,000 A.I. Credit
Corp., 5.55%,
1/11/96 4,992,292
10,000,000 Met Life Funding
Corp., 5.65-
5.67%, 1/10/96-
2/1/96 9,968,525
10,000,000 USAA Capital
Corp., 5.67-
5.68%, 1/5/96-
1/23/96 9,979,519
- ---------------------------------------------------
24,940,336
- ---------------------------------------------------
OIL & OIL FINANCE - 1.3%
5,000,000 Atlantic
Richfield Co.,
5.64%, 1/22/96 4,983,550
- ---------------------------------------------------
PHARMACEUTICALS AND HEALTHCARE - 1.3%
5,000,000 Eli Lilly Co.,
5.60%, 2/20/96 4,961,111
- ---------------------------------------------------
PRINTING & PUBLISHING - 1.3%
5,000,000 McGraw Hill
Inc., 5.50%,
4/22/96 4,914,444
- ---------------------------------------------------
RETAIL - 1.3%
5,000,000 May Department
Stores, 5.65%,
1/22/96 4,983,521
- ---------------------------------------------------
SERVICES - 2.6%
10,000,000 PHH Corp., 5.65-
5.67%, 1/16/96-
1/26/96 9,968,542
- ---------------------------------------------------
SOVEREIGN GOVERNMENT - 3.8%
5,000,000 Canadian Wheat
Board, 5.50%,
3/15/96 4,943,473
10,000,000 Wool
International,
5.58-5.66%,
1/19/96-2/28/96 9,940,901
- ---------------------------------------------------
14,884,374
- ---------------------------------------------------
UTILITIES - 2.6%
10,300,000 Baltimore Gas &
Electric, 5.67-
5.69%, 1/12/96-
1/24/96 10,272,641
- ---------------------------------------------------
TOTAL COMMERCIAL PAPER 335,801,101
- ---------------------------------------------------
GOVERNMENT AGENCIES - 1.3%
5,000,000 Student Loan
Marketing
Association
Weekly Floating
Rate Note 5,000,000
- ---------------------------------------------------
(B)REPURCHASE AGREEMENTS - 12.5%
- ---------------------------------------------------
48,619,100 Morgan Stanley &
Co., 5.87%,
dated 12/29/95,
due 1/2/96 48,619,100
- ---------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED
COST) $389,420,201(C)
- ---------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
14
<PAGE>
Portfolio of Investments
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND December 31,
1995
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
OHIO - 94.5%
$742,500 Avon City, OH, BANs 4.15%, 4/30/96 MIG1* $743,956
- -------------------------------------------------------------------------------
800,000 Avon City, OH, BANs 4.27%, 4/30/96 MIG1* 801,226
- -------------------------------------------------------------------------------
475,000 Berea City, OH, 3.85%, 10/24/96 MIG1* 475,736
- -------------------------------------------------------------------------------
1,000,000 Bowling Green, OH, BANs 4.30%, 9/12/96 MIG1* 1,002,361
- -------------------------------------------------------------------------------
1,555,000 Butler County, OH, 4.86%, BANs, 3/15/96 MIG1* 1,556,538
- -------------------------------------------------------------------------------
500,000 Centerville, OH, City School, 4.40%, 3/14/96 MIG1* 500,601
- -------------------------------------------------------------------------------
2,000,000 Centerville, OH, Weekly VRDNs (Bethany
Village)/(Banc Ohio LOC) VMIG1 2,000,000
- -------------------------------------------------------------------------------
1,500,000 Cincinnati Hamilton County, OH, Port
Authority, Daily VRDNs A1 1,500,000
- -------------------------------------------------------------------------------
1,300,000 Cincinnati, OH, Student Loan Funding Corp.,
Weekly VRDNs (Series 1983A)/(Fuji Bank Ltd.
LOC) VMIG1 1,300,000
- -------------------------------------------------------------------------------
3,372,000 Clermont County, OH, Hospital Facilities,
Daily VRDNs (Mercy Health Care
System)/(MBIA Insured) VMIG1 3,372,000
- -------------------------------------------------------------------------------
2,200,000 Columbus City, OH, Weekly VRDNs (West
Deutsche Landesbank LOC) VMIG1 2,200,000
- -------------------------------------------------------------------------------
5,000,000 Columbus, OH, Electric System Revenue,
Weekly VRDNs (Dei-Ichi Kangyo Bank Ltd.
LOC) VMIG1 5,000,000
- -------------------------------------------------------------------------------
4,700,000 Columbus, OH, Sewer System Revenue Bonds,
Weekly VRDNs (Series 1994)/ (Columbus, OH
Sewer System Guaranty) A-1+ 4,700,000
- -------------------------------------------------------------------------------
905,000 Cuyahoga County, OH 3.95%, 6/1/96 MIG1* 905,000
- -------------------------------------------------------------------------------
715,000 Cuyahoga County, OH, IDR,
4.25%, 7/1/96 MIG1* 715,000
- -------------------------------------------------------------------------------
1,400,000 Cuyahoga County, OH, IDA Weekly VRDNs (Allen
Group Inc.)/(Dresdner Bank AG,
NY LOC) VMIG1 1,400,000
- -------------------------------------------------------------------------------
500,000 Delaware County, OH, IDR Weekly VRDNs VMIG1 500,000
- -------------------------------------------------------------------------------
1,525,000 Dover, OH, BANs 4.20%, 9/12/96 MIG1* 1,527,575
- -------------------------------------------------------------------------------
1,090,000 Dublin, OH, Csd Light Gn Twp 4.00%, 12/1/96 Aaa 1,095,100
- -------------------------------------------------------------------------------
1,500,000 Dublin, OH, GO 4.25%, 3/20/96 MIG1* 1,501,672
- -------------------------------------------------------------------------------
900,000 Elyria, OH, GO 4.00%, 9/26/96 MIG1* 900,641
- -------------------------------------------------------------------------------
1,600,000 Evandale, OH, IDR, Weekly VRDNs (Shaver Real
Estate)/(ABN AMRO Bank LOC) P-1 1,600,000
- -------------------------------------------------------------------------------
1,200,000 Franklin County, OH, Hospital Revenue Bonds,
Weekly VRDNs (Children's Hospital) VMIG1 1,200,000
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
OHIO (CONTINUED)
$2,500,000 Franklin County, OH, Hospital Revenue Bonds,
Weekly VRDNs (Holy Cross Health Systems) VMIG1 $2,500,000
- -------------------------------------------------------------------------------
950,000 Franklin County, OH, IDR Daily VRDNs
(Columbus County Art Project)/(Bank One
LOC) MIG1* 950,000
- -------------------------------------------------------------------------------
1,500,000 Franklin County, OH, Weekly VRDNs VMIG1 1,500,000
- -------------------------------------------------------------------------------
1,100,000 Geauga County, OH, Capital Imp
3.79%, 12/20/96 MIG1* 1,101,949
- -------------------------------------------------------------------------------
1,100,000 Hamilton County, OH, Daily VRDNs (Automated
Data Processing Company)/(National
Westminster Bank PLC LOC) P-1 1,100,000
- -------------------------------------------------------------------------------
1,000,000 Highland Heights, OH, BANs 3.89%, 12/19/96 MIG1* 1,001,767
- -------------------------------------------------------------------------------
1,000,000 Hilliard, OH, BANs 4.14%, 9/19/96 MIG1* 1,002,011
- -------------------------------------------------------------------------------
1,656,000 Lakota, OH, 4.30%, 6/12/96 MIG1* 1,658,924
- -------------------------------------------------------------------------------
1,660,000 Lebanon, OH, Electric BANs 3.92%, Due
12/20/96 MIG1* 1,664,185
- -------------------------------------------------------------------------------
1,600,000 Lorain County, OH, 4.00%, 2/1/96 MIG1* 1,600,317
- -------------------------------------------------------------------------------
985,000 Mahoning County, OH, Adjustable Rate
Healthcare Facility, Daily VRDNs (Series
1992)/ (Copeland Oaks)/(Bank One LOC) MIG1* 985,000
- -------------------------------------------------------------------------------
1,100,000 Marion County, OH, Daily VRDNs (Bank One,
Columbus LOC) A1+ 1,100,000
- -------------------------------------------------------------------------------
1,760,000 Maumee City, OH, BANs 3.84%, 12/10/96 MIG1* 1,760,630
- -------------------------------------------------------------------------------
270,000 Mayfield City, OH, School District 3.95%,
4/25/96 MIG1* 270,127
- -------------------------------------------------------------------------------
1,000,000 Montgomery County, OH, Miami Hospital,
3.75%, 1/10/96 MIG1* 1,000,000
- -------------------------------------------------------------------------------
1,000,000 Morrow County, OH, Daily VRDNs (American
National Bank LOC) A-1 1,000,000
- -------------------------------------------------------------------------------
2,200,000 Muskingum County, OH, Hospital Facilities
Authority, Weekly VRDNs (Bethesda Care
Systems)/(National City Bank, Columbus LOC) VMIG1 2,200,000
- -------------------------------------------------------------------------------
5,400,000 Ohio Air Quality, Cincinnati Gas & Electric,
Daily VRDN VMIG1 5,400,000
- -------------------------------------------------------------------------------
2,500,000 Ohio State Air Cleveland Electric, 3.55%,
1/11/96 VMIG1 2,500,000
- -------------------------------------------------------------------------------
3,300,000 Ohio State Air Quality Development
Authority, weekly VRDN (Mead
Corp.)/(Deutsche Bank LOC) A-1+ 3,300,000
- -------------------------------------------------------------------------------
3,200,000 Ohio State Environmental Improvement, Weekly
VRDNs (USX Corp.)/(Sanwa Bank LOC) P-1 3,200,000
- -------------------------------------------------------------------------------
3,200,000 Ohio State Higher Education Facility, Daily
VRDNs (Oberlin College)/(Bank of Tokyo Ltd.
LOC) A-1+ 3,200,000
- -------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Portfolio of Investments
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
---------------------------
THE MONITOR U.S. TREASURY MARKET FUND December 31, 1995
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
OHIO (CONTINUED)
$1,000,000 Ohio State Higher Education Facility, Weekly
VRDNs (Mt. Vernon Nazarene College)/
(National City Bank LOC) VMIG1* $1,000,000
- -------------------------------------------------------------------------------
1,000,000 Ohio State Pollution Control, Weekly VRDNs
(ALCOA) VMIG1 1,000,000
- -------------------------------------------------------------------------------
6,675,000 Ohio State University, Daily VRDNs (Series
1986B)/ (National Westminster Bank PLC LOC) VMIG1 6,675,000
- -------------------------------------------------------------------------------
100,000 Ohio State University, Weekly VRDNs (Series
1985B)/(National Westminster Bank PLC LOC) VMIG1 100,000
- -------------------------------------------------------------------------------
2,975,000 Ohio State University, Weekly VRDNs (Series
1992B) VMIG1 2,975,000
- -------------------------------------------------------------------------------
2,300,000 Ohio State Water Development Authority,
Daily VRDNs (American Honda
Finance)/(Industrial Bank of Japan Ltd.
LOC) MIG1* 2,300,000
- -------------------------------------------------------------------------------
1,600,000 Ohio State Water Development Authority,
Daily VRDNs (Series 1986B)/(Mead
Corp.)/(Swiss Bank Corp. LOC) VMIG1 1,600,000
- -------------------------------------------------------------------------------
600,000 Perry Local School District, 3.65%, 6/1/96 Aa 600,000
- -------------------------------------------------------------------------------
1,290,000 Portage County, OH, (Series B), BANs, 4.15%,
Due 7/11/96 MIG1* 1,290,998
- -------------------------------------------------------------------------------
945,000 Richland County, OH, BANs, 4.00%, 12/5/96 MIG1* 947,957
- -------------------------------------------------------------------------------
585,000 Stark County, OH, IDR, Various Purpose
Notes, 5.00%, BANs (Series 1995-1), 4/3/96 MIG1* 585,601
- -------------------------------------------------------------------------------
2,100,000 Summit County, OH, Industrial Development
Revenue, Monthly VRDNs A1 2,100,000
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING:
OR MOODY'S
SHARES OR S&P(D) VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
OHIO (CONTINUED)
$500,000 Talawanda, OH, 5.37%, 4/4/96 SP-1 $501,190
- ------------------------------------------------------------------------------
1,800,000 Toledo Lucas Cp CSX 3.55%, 2/1/96 A1+ 1,800,000
- ------------------------------------------------------------------------------
1,855,000 Toledo-Lucas County, OH, Monthly VRDNs,
Convention Center & Visitors Bureau
(Marine Midland Bank-Hong Kong LOC) VMIG1 1,855,000
- ------------------------------------------------------------------------------
600,000 University of Cincinnati, OH,
4.25%, Due 6/28/96 MIG1 600,958
- ------------------------------------------------------------------------------
925,000 Vermilion, OH, GO, BANs, 4.10%, 11/1/96 MIG1* 926,119
- ------------------------------------------------------------------------------
1,000,000 Warren County, OH, Industrial
Development Revenue, Weekly VRDNs
(Pioneer Industrial)/ (Mitsubishi Bank
Ltd. LOC) P-1 1,000,000
- ------------------------------------------------------------------------------
800,000 Wilmington, OH, GO BANs, 4.39%, 4/10/96 MIG1* 800,679
- ------------------------------------------------------------------------------
700,000 Wooster, OH, Industrial Development
Revenue, Weekly VRDNs (Dresdner Bank
LOC) VMIG1 700,000
- ------------------------------------------------------------------------------
TOTAL OHIO (AT AMORTIZED COST) $105,850,818
- ------------------------------------------------------------------------------
PUERTO RICO - 4.5%
2,000,000 Puerto Rico Government Dev Bank, 3.30%,
1/18/96 NR 2,000,000
- ------------------------------------------------------------------------------
3,000,000 Puerto Rico Government Dev Bank, 3.55%,
2/6/96 NR 3,000,000
- ------------------------------------------------------------------------------
TOTAL PUERTO RICO (AT AMORTIZED COST) $5,000,000
- ------------------------------------------------------------------------------
OTHER - .8%
876,000 Nuveen Tax-Exempt Money Market Fund,
Inc. NR 876,000
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $111,726,818(C)
- ------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
THE MONITOR U.S. TREASURY MONEY MARKET FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------
<C> <S> <C>
U. S. TREASURY BILLS - 47.0%
- -----------------------------------------------
$10,000,000 1/11/96 $9,985,292
- -----------------------------------------------
10,000,000 1/25/96 9,964,433
- -----------------------------------------------
10,000,000 2/01/96 9,952,876
- -----------------------------------------------
10,000,000 2/08/96 9,943,370
- -----------------------------------------------
10,000,000 2/15/96 9,933,125
- -----------------------------------------------
10,000,000 2/22/96 9,922,722
- -----------------------------------------------
10,000,000 2/29/96 9,913,713
- -----------------------------------------------
10,000,000 3/07/96 9,903,017
- -----------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------
<C> <S> <C>
U. S. TREASURY BILLS - CONTINUED
- ------------------------------------
$10,000,000 3/14/96 $9,891,919
- ------------------------------------
10,000,000 3/21/96 9,882,333
- ------------------------------------
10,000,000 3/28/96 9,873,125
- ------------------------------------
10,000,000 4/04/96 9,862,133
- ------------------------------------
10,000,000 5/02/96 9,822,422
- ------------------------------------
10,000,000 5/09/96 9,813,308
- ------------------------------------
10,000,000 5/16/96 9,809,222
- ------------------------------------
TOTAL U.S. TREASURY
BILLS 148,473,010
- ------------------------------------
</TABLE>
16
<PAGE>
---------------------------
THE MONITOR U.S. TREASURY MARKET FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------------
<C> <S> <C>
(E) REPURCHASE AGREEMENTS - 53.5%
- ---------------------------------------------
$68,976,000 Daiwa Securities
America, Inc.,
5.85%, dated
12/29/95, due
1/2/96 $68,976,000
15,000,000 Goldman Sachs &
Co., 5.70%,
dated 12/29/95,
due 1/2/96 15,000,000
15,000,000 Lehman Brothers
Inc., 5.75%,
dated 12/29/95,
due 1/2/96 15,000,000
15,000,000 Dean Witter
Reynolds, Inc.,
5.50%,
dated 12/29/95,
due 1/3/96 15,000,000
15,000,000 Morgan Stanley &
Co., Inc.,
5.80%,
dated 12/29/95,
due 1/4/96 15,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------
<C> <S> <C>
(E) REPURCHASE AGREEMENTS - CONTINUED
- -------------------------------------------------
$15,000,000 First Boston
Corp., 5.65%,
dated
12/29/95, due
1/5/96 $15,000,000
15,000,000 Nomura Bank
Limited, 5.68%,
dated 12/29/95,
due 1/5/96 15,000,000
10,000,000 Sanwa Bank
Limited, 5.77%,
dated 12/29/95,
due 1/4/96 10,000,000
- -------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 168,976,000
- -------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED
COST) $317,449,010(C)
- -------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
----------------------------------------------
THE MONITOR GROWTH FUND December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ----------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS - 97.3%
- ----------------------------------------------------------------
CAPITAL GOODS - 3.7%
70,000 Boeing Co. $5,486,250
- ----------------------------------------------------------------
CHEMICALS - 6.8%
160,000 Hanna (M.A.) Co. 4,480,000
9,000 Potash Corp. 637,875
100,000 Sigma Aldrich Corp. 4,950,000
- ----------------------------------------------------------------
10,067,875
- ----------------------------------------------------------------
CONSUMER GOODS & SERVICES - 2.5%
120,000 Media General Cl. A 3,645,000
- ----------------------------------------------------------------
CONSUMER NON-DURABLES - 5.7%
95,000 American Brands 4,239,375
60,000 Colgate-Palmolive Co. 4,215,000
- ----------------------------------------------------------------
8,454,375
- ----------------------------------------------------------------
CONSUMER PRODUCTS - 18.2%
130,000 American Greetings Corp. 3,591,250
70,000 International Flavors & Fragrances 3,360,000
135,000 Mattel, Inc. 4,151,250
150,000 Newell Co. 3,881,250
55,000 Philip Morris Cos., Inc. 4,977,500
100,000 Tambrands, Inc. 4,775,000
40,000 Wrigley Wm Jr Co. 2,100,000
- ----------------------------------------------------------------
26,836,250
- ----------------------------------------------------------------
ELECTRICAL EQUIPMENT - 6.1%
40,000 Emerson Electric Co. 3,270,000
42,800 General Electric Co. 3,081,600
40,582 Hubbell, Inc. 2,668,267
- ----------------------------------------------------------------
9,019,867
- ----------------------------------------------------------------
ELECTRONICS - 2.9%
175,000 Premier Industrial Corp. 4,287,500
- ----------------------------------------------------------------
ENERGY - 7.2%
105,000 Anadarko Petroleum 5,683,125
70,000 Schlumberger 4,847,500
- ----------------------------------------------------------------
10,530,625
- ----------------------------------------------------------------
FINANCIAL - 7.9%
105,000 American Express 4,344,375
22,500 American International Group 2,081,250
80,000 Cincinnati Financial Corp. 5,220,000
- ----------------------------------------------------------------
11,645,625
- ----------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
<C> <S> <C>
FOOD & BEVERAGE - 5.7%
76,600 McDonald's Corp. $3,456,575
88,500 Pepsico, Inc. 4,944,938
- --------------------------------------------------------------------------
8,401,513
- --------------------------------------------------------------------------
FOOD DISTRIBUTOR/SERVICE SYSTEM - 2.2%
100,000 Sysco Corp. 3,250,000
- --------------------------------------------------------------------------
HEALTHCARE - 8.5%
110,000 Abbott Laboratories 4,592,500
35,000 Merck & Co. 2,301,250
90,000 Pfizer, Inc. 5,670,000
- --------------------------------------------------------------------------
12,563,750
- --------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 1.0%
15,000 Illinois Tool Works, Inc. 885,000
15,000 Parker-Hannifin Corp. 513,750
- --------------------------------------------------------------------------
1,398,750
- --------------------------------------------------------------------------
PRODUCER MANUFACTURING - 2.9%
75,000 Nordson Corp. 4,218,750
- --------------------------------------------------------------------------
RETAIL - 6.9%
110,000 Home Depot 5,266,250
110,000 Wal-Mart Stores, Inc. 2,461,250
80,000 Walgreen 2,390,000
- --------------------------------------------------------------------------
10,117,500
- --------------------------------------------------------------------------
TECHNOLOGY - 9.1%
65,000 Automatic Data Processing, Inc. 4,826,250
55,000 General Motors Corp. Class E Shares 2,860,000
15,000 Hewlett-Packard Co. 1,256,250
35,000 Motorola, Inc. 1,995,000
51,100 Pitney Bowes, Inc. 2,401,700
- --------------------------------------------------------------------------
13,339,200
- --------------------------------------------------------------------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $108,116,173) 143,262,830
- --------------------------------------------------------------------------
(F) COMMERCIAL PAPER - 3.0%
- --------------------------------------------------------------------------
FINANCIAL - 3.0%
2,000,000 American Express 5.768% 01/04/96 2,000,000
494,662 General Electric Capital Corp. 5.553% 01/02/96 494,662
2,000,000 Norwest Corp. 5.714% 01/12/96 2,000,000
- --------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 4,494,662
- --------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $112,610,835) $147,757,492
- --------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
17
<PAGE>
------------------------------------
THE MONITOR INCOME EQUITY FUND December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------
<C> <S> <C>
COMMON STOCKS - 80.4%
- -------------------------------------------
BANKING & FINANCE - 13.7%
30,000 Aetna Life $2,077,500
65,000 Chemical Bank 3,818,750
120,000 CoreStates
Financial Corp. 4,545,000
70,000 H.F. Ahmanson & Co. 1,855,000
100,000 National City Corp. 3,312,500
100,000 Ohio Casualty Corp. 3,875,000
- -------------------------------------------
19,483,750
- -------------------------------------------
BASIC INDUSTRY - 7.8%
40,000 duPont (EI)
deNemours & Co. 2,795,000
34,000 Monsanto Co. 4,165,000
90,000 PPG Industries,
Inc. 4,117,500
- -------------------------------------------
11,077,500
- -------------------------------------------
BUSINESS SERVICES - 3.9%
65,000 Dun & Bradstreet
Corp. 4,208,750
56,500 John H. Harland Co. 1,229,538
- -------------------------------------------
5,438,288
- -------------------------------------------
CAPITAL GOODS - 3.8%
105,000 Worthington
Industries, Inc. 2,185,313
180,000 Zero Corp. 3,195,000
- -------------------------------------------
5,380,313
- -------------------------------------------
CONSUMER DURABLES - 2.0%
100,000 Ford Motor Co. 2,900,000
- -------------------------------------------
CONSUMER NON-DURABLES - 16.3%
70,000 American Brands 3,123,750
40,000 American Home
Products Corp. 3,880,000
35,000 Bristol-Myers
Squibb Co. 3,005,625
55,000 Clorox Co. 3,939,375
116,000 Pharmacia Upjohn
Inc. 4,495,000
50,000 Philip Morris Cos.,
Inc. 4,525,000
17,500 RJR Nabisco (Series
G) 111,563
- -------------------------------------------
23,080,313
- -------------------------------------------
ELECTRICAL EQUIPMENT -- 2.7%
54,000 General Electric
Co. 3,888,000
- -------------------------------------------
ENERGY - 10.6%
20,000 Atlantic Richfield
Co. 2,215,000
46,000 Chevron 2,415,000
42,000 Exxon Corp. 3,365,250
</TABLE>
--------------------------------------
THE MONITOR OHIO TAX-FREE FUND December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT OR SHARES VALUE
- -------------------------------------------
<C> <S> <C>
25,000 Royal Dutch
Petroleum Co. $3,528,125
45,000 Texaco, Inc. 3,532,500
- -------------------------------------------
15,055,875
- -------------------------------------------
REAL ESTATE INVESTMENT TRUSTS -- 2.8%
30,000 American Health 645,000
40,000 National Health
Properties 1,680,000
65,500 Simon Property
Group 1,596,563
- -------------------------------------------
3,921,563
- -------------------------------------------
TECHNOLOGY - 2.9%
30,000 Xerox Corp. 4,110,000
- -------------------------------------------
UTILITIES -- 13.9%
55,000 Bell Atlantic
Corp. 3,678,125
120,000 DPL, Inc. 2,970,000
65,000 GTE Corp. 2,860,000
80,000 IPALCO
Enterprises 3,050,000
45,000 Pacific Telesis
Group 1,513,125
90,000 People Energy
Corp. 2,857,500
90,000 Wisconsin Energy
Corp. 2,756,250
- -------------------------------------------
19,685,000
- -------------------------------------------
TOTAL COMMON STOCKS (IDENTI-
FIED COST $78,511,891) 114,020,602
- -------------------------------------------
U.S. GOVERNMENT BONDS - 14.7%
- -------------------------------------------
UNITED STATES TREASURY SECURITIES --
14.7%
4,000,000 United States
Treasury Bond,
6.01%, 2/8/96 3,974,624
1,700,000 United States
Treasury Bond,
8.875%,
8/15/2017 2,276,249
9,000,000 United States
Treasury Note,
6.78%, 6/30/99 9,408,329
4,000,000 United States
Treasury Note,
6.875%, 2/28/97 4,074,280
1,000,000 United States
Treasury Note,
7.75%, 2/15/2001 1,104,120
- -------------------------------------------
TOTAL U.S. GOVERNMENT BONDS
(IDENTIFIED COST
$19,774,833) 20,837,602
- -------------------------------------------
(F) COMMERCIAL PAPER - 4.5%
- -------------------------------------------
2,000,000 American Express,
5.75%, 1/02/96 2,000,000
4,344,007 GE Capital Corp.,
5.55%, 1/02/96 4,344,007
- -------------------------------------------
TOTAL COMMERCIAL PAPER (AT
AMORTIZED COST) 6,344,007
- -------------------------------------------
TOTAL INVESTMENTS (IDENTI-
FIED COST $104,630,731) $141,202,211
- -------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
THE MONITOR OHIO TAX-FREE FUND
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES - 94.5%
- ------------------------------------------------------------------------------
OHIO - 94.5%
$215,000 Alliance, OH, City School District, 6.20%
(AMBAC Insured), 12/1/2001 Aaa $236,500
- ------------------------------------------------------------------------------
250,000 Archbold, OH, Local School District, 6.80%
(MBIA Insured)/(Prerefunded), 12/1/98
(@102) Aaa 273,438
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- ------------------------------------------------------------------------------
$290,000 Aurora, OH, 7.35% (BIG Insured),
(Prerefunded), 12/1/99 Aaa $326,613
- ------------------------------------------------------------------------------
300,000 Aurora, OH, City School District 5.55%
(FGIC Insured), 12/1/2007 Aaa 316,875
- ------------------------------------------------------------------------------
280,000 Avon Lake, OH, 5.10% Water System Mortgage
Revenue Bonds, 10/1/2005 Aaa 287,350
- ------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND Continued
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Beachwood, OH, City School District, 6.60%,
12/1/2004 Aa $278,750
- -------------------------------------------------------------------------------
215,000 Bedford, OH, City School District (Energy
Conservation Improvement), 5.35%,
6/15/2002 A 223,600
- -------------------------------------------------------------------------------
200,000 Bedford, OH, City School District (Energy
Conservation Improvement), 5.40%,
6/15/2003 A 208,250
- -------------------------------------------------------------------------------
205,000 Berea, OH, 6.95%, 12/1/98 Aa 221,144
- -------------------------------------------------------------------------------
250,000 Blue Ash, OH, 6.50%, 11/1/99 Aa 270,625
- -------------------------------------------------------------------------------
230,000 Bowling Green, OH, City School, 6.90%,
12/1/98 A1 247,538
- -------------------------------------------------------------------------------
500,000 Butler County, OH, 4.80% Sewer System
Revenue Bonds (AMBAC Insured), 12/1/98 Aaa 511,250
- -------------------------------------------------------------------------------
250,000 Butler County, OH, Hospital Facilities,
5.25%, 11/15/2000 AAA 262,188
- -------------------------------------------------------------------------------
250,000 Centerville, OH, City School District,
6.625%, 12/1/99 A 271,250
- -------------------------------------------------------------------------------
230,000 Cincinnati, OH, 4.50%, 12/1/97 AA+ 232,875
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, 5.25%, 6/1/2008 A1 253,125
- -------------------------------------------------------------------------------
265,000 Cincinnati, OH, 5.35%, 6/1/2009 (Series V) A1 268,975
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, 6.75%, 12/1/2001 AA+ 282,500
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, 7.00%, 10/1/97 AA+ 263,125
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, Street Improvement, 7.00%,
12/1/99 Aa 276,250
- -------------------------------------------------------------------------------
500,000 Cleveland Heights, OH, 5.60%, 12/1/2002 Aa 536,875
- -------------------------------------------------------------------------------
500,000 Cleveland Heights, OH, 6.75% (FGIC
Insured), 12/1/97 Aaa 525,625
- -------------------------------------------------------------------------------
500,000 Cleveland, OH, 5.90% (MBIA Insured),
11/15/2001 AAA 541,875
- -------------------------------------------------------------------------------
200,000 Cleveland, OH, 6.40% GO Bonds (AMBAC
Insured), 10/1/2002 Aaa 223,500
- -------------------------------------------------------------------------------
200,000 Cleveland, OH, Regional Transit Authority,
4.85% GO LT Capital Improvement Bonds,
12/1/98 A 204,500
- -------------------------------------------------------------------------------
500,000 Clyde, OH, Temp. Water System, 5.60%
Improvement Revenue Bonds (Series 1994),
5/1/97 MIGI 512,500
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -----------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -----------------------------------------------------------------------------
$750,000 Columbus, OH, 4.35% (Series C), 9/15/98 Aaa $757,500
- -----------------------------------------------------------------------------
270,000 Columbus, OH, 5.35%, 5/15/2003 Aaa 287,213
- -----------------------------------------------------------------------------
500,000 Columbus, OH, 6.30%, 1/1/2005 Aaa 552,500
- -----------------------------------------------------------------------------
250,000 Columbus, OH, 6.30%, 4/15/2003 Aaa 272,500
- -----------------------------------------------------------------------------
250,000 Columbus, OH, 7.00% Sewer Revenue Bonds
(Prerefunded), 3/1/99 (@102) Aa1 275,313
- -----------------------------------------------------------------------------
250,000 Columbus, OH, City School District, 5.05%
(FGIC Insured), 12/1/2002 AAA 259,688
- -----------------------------------------------------------------------------
250,000 Columbus, OH, Sewer Revenue Bonds, 7.50%,
6/1/97 AA- 258,825
- -----------------------------------------------------------------------------
250,000 Copley Fairlawn, OH, 5.15% UT GO Bonds,
Fairlawn City School District, 12/1/2001 A1 261,563
- -----------------------------------------------------------------------------
500,000 Cuyahoga County, OH, 4.50% GO Bonds
(Prerefunded), 10/1/98 Aa 504,375
- -----------------------------------------------------------------------------
500,000 Cuyahoga County, OH, 5.20%, 11/15/2009 Aa 505,625
- -----------------------------------------------------------------------------
500,000 Cuyahoga County, OH, 6.90% (Prerefunded),
10/1/99 (@102) Aa 555,000
- -----------------------------------------------------------------------------
250,000 Cuyahoga County, OH, 7.00% (Prerefunded),
10/1/98 (@102) Aa1 273,125
- -----------------------------------------------------------------------------
200,000 Cuyahoga Falls, OH, 5.40% GO Bonds (MBIA
Insured), 12/1/2006 AAA 210,500
- -----------------------------------------------------------------------------
400,000 Delaware, OH, 5.40%, 11/1/2002 A 415,500
- -----------------------------------------------------------------------------
250,000 Dover, OH, Municipal Electric System
Revenue, 5.50% (FGIC Insured), 12/1/2007 Aaa 260,313
- -----------------------------------------------------------------------------
250,000 Dublin, OH, City School District, 6.05%
(FGIC Insured), 12/1/2003 Aaa 275,938
- -----------------------------------------------------------------------------
250,000 Dublin, OH, City School District, 6.15%
(FGIC Insured), 12/1/2004 Aaa 278,750
- -----------------------------------------------------------------------------
200,000 Dublin, OH, Local School District, 6.80%
(AMBAC Insured)/(ETM), 12/1/97 Aaa 210,500
- -----------------------------------------------------------------------------
250,000 Eastlake, OH, 5.00% GO Bonds, 12/1/2004 A1 252,813
- -----------------------------------------------------------------------------
500,000 Euclid, OH, 5.30%, 12/1/2007 Aa 509,375
- -----------------------------------------------------------------------------
250,000 Euclid, OH, 6.40%, 12/1/2004 Aa 276,250
- -----------------------------------------------------------------------------
</TABLE>
19
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$420,000 Euclid, OH, 7.00%, 12/1/2002 Aa $468,300
- -------------------------------------------------------------------------------
245,000 Fairfield City School District, OH, 5.65%
(FGIC Insured), 12/1/2006 AAA 260,925
- -------------------------------------------------------------------------------
250,000 Findlay, OH, 5.20% GO Sewer System Bonds,
7/1/2006 A1 256,250
- -------------------------------------------------------------------------------
270,000 Findlay, OH, 6.70%, 8/1/97 A1 281,138
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, 5.05% Hospital Revenue
Bonds (Doctors Hospital), 12/1/99 A 509,375
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, 5.05% Refunding
Revenue Bonds, 12/1/2005 Aaa 521,250
- -------------------------------------------------------------------------------
285,000 Franklin County, OH, 5.50% Revenue
Anticipation Bonds (Convention
Authority)/(MBIA Insured), 12/1/2003 Aaa 302,100
- -------------------------------------------------------------------------------
305,000 Franklin County, OH, 6.00% GO Bonds,
9/1/2006 AAA 334,356
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, 6.40% Hospital Revenue
Bonds (Series 1991A)/(Childrens Hospital),
11/1/2006 Aa 548,125
- -------------------------------------------------------------------------------
250,000 Franklin County, OH, 6.50% Hospital Revenue
Bonds (Series 1992A)/(Childrens Hospital),
5/1/2007 Aa 276,250
- -------------------------------------------------------------------------------
550,000 Franklin County, OH, 7.20% Hospital Revenue
Bonds (Holy Cross Health Systems),
6/1/2000 A1 601,563
- -------------------------------------------------------------------------------
515,000 Gahanna, OH, 5.25%, 6/1/2002 A1 539,463
- -------------------------------------------------------------------------------
580,000 Gahanna, OH, 5.55%, 6/1/2005 A1 617,700
- -------------------------------------------------------------------------------
250,000 Gahanna, OH, 6.40% (Prerefunded), 6/1/2001 A1 278,438
- -------------------------------------------------------------------------------
250,000 Grandview Heights, OH, 7.10%, 12/1/2006 A1 281,563
- -------------------------------------------------------------------------------
250,000 Grandview Heights, OH, City School
District, 5.40%, 12/1/2005 A1 263,438
- -------------------------------------------------------------------------------
250,000 Hamilton County, OH, 4.60% Hospital Revenue
Bonds (MBIA Insured), 5/15/2000 AAA 253,438
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, 4.70%, 12/1/2004 Aa 501,875
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, 4.90% Hospital Revenue
Bonds (Series 1993D)/(FGIC Insured),
5/15/2003 Aaa 509,375
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$300,000 Hamilton County, OH, 5.95%, 12/1/2002 AA $328,500
- -------------------------------------------------------------------------------
155,000 Hamilton County, OH, 6.30% Sewer System
Bonds, 12/1/2001 A1 170,694
- -------------------------------------------------------------------------------
195,000 Hamilton County, OH, 6.40% Sewer System
Bonds (Prerefunded), 6/1/2001 (@102) A1 217,181
- -------------------------------------------------------------------------------
305,000 Hamilton County, OH, 6.40% Sewer System
Bonds, 12/1/2003 A1 339,694
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Hospital Facilities,
5.90% (Episcopal Retirement Home)/(Fifth
Third Bank LOC), 1/1/99 Aa1 522,500
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Hospital Facilities,
6.50% (Christ Hospital)/(FGIC Insured),
1/1/2002 Aaa 545,000
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Hospital Facilities,
6.75% (Children's Hospital)/(BIG Insured),
5/15/2002 Aaa 528,750
- -------------------------------------------------------------------------------
1,000,000 Hamilton County, OH, Improvement Museum,
7.125% (Prerefunded), 12/1/97 (@102) Aaa 1,085,000
- -------------------------------------------------------------------------------
95,000 Hamilton County, OH, 6.30% Sewer System
Bonds (Prerefunded), 6/1/2001 (@102) A1 104,856
- -------------------------------------------------------------------------------
250,000 Hamilton, OH, 4.40% (MBIA Insured),
10/15/2003 Aaa 248,750
- -------------------------------------------------------------------------------
390,000 Hamilton, OH, 5.10% Electric System
Mortgage Revenue Bonds (Series A)/(FGIC
Insured), 10/15/99 Aaa 401,700
- -------------------------------------------------------------------------------
170,000 Hilliard, OH, 5.35%, 12/1/2006 A1 175,738
- -------------------------------------------------------------------------------
180,000 Hilliard, OH, 5.50%, 12/1/2007 A1 189,900
- -------------------------------------------------------------------------------
230,000 Hilliard, OH, 6.75%, 12/1/98 A1 246,963
- -------------------------------------------------------------------------------
500,000 Hilliard, OH, City School District, 5.35%,
12/1/2004 A1 525,000
- -------------------------------------------------------------------------------
250,000 Hilliard, OH, School District, 5.00% (AMBAC
Insured), 12/1/2003 AAA 259,688
- -------------------------------------------------------------------------------
245,000 Indian Hill Water Works, OH, 4.90% Revenue
Bonds, 6/1/2005 A+ 250,513
- -------------------------------------------------------------------------------
585,000 Kettering, OH, 5.05% GO Bonds, 12/1/2004 Aa 604,013
- -------------------------------------------------------------------------------
345,000 Kettering, OH, 6.70%, 12/1/97 Aa 362,250
- -------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$255,000 Lakewood, OH, 5.05%, 12/1/2005 Aa $263,925
- -------------------------------------------------------------------------------
535,000 Lakewood, OH, 5.85%, 12/1/2002 Aa 583,819
- -------------------------------------------------------------------------------
250,000 Lakota, OH, GO UT, 6.40% School Improvement
Bonds (AMBAC Insured), 12/1/2000 AAA 274,375
- -------------------------------------------------------------------------------
500,000 Lorain County Water Authority, 4.95% (AMBAC
Insured), 10/1/2004 AAA 511,250
- -------------------------------------------------------------------------------
275,000 Lyndhurst, OH, 7.40% (Prerefunded), 12/1/97 Aa 297,344
- -------------------------------------------------------------------------------
200,000 Marysville, OH, Exempt Village School,
6.90% (AMBAC Insured), 12/1/2000 Aaa 225,000
- -------------------------------------------------------------------------------
300,000 Massillon, OH, City School District, UT,
4.80% GO Revenue Bonds (AMBAC Insured),
12/1/2008 AAA 299,625
- -------------------------------------------------------------------------------
250,000 Mentor, OH, 6.70%, 12/1/2003 A 275,000
- -------------------------------------------------------------------------------
265,000 Mentor, OH, 6.80%, 12/1/98 A 284,544
- -------------------------------------------------------------------------------
500,000 Miami University, OH, 5.40%, 12/1/2005 A+ 524,375
- -------------------------------------------------------------------------------
200,000 Miami Valley Regional Transit Authority, GO
UT, 5.10% Revenue Bonds, 12/1/2001 A 207,250
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, 6.10% (Series
1992A)/ (Miami Valley Hospital)/ (AMBAC
Insured), 11/15/2002 Aaa 548,750
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, 6.45% (Prerefunded),
9/1/2001 Aa 551,875
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, 6.50% (Series A)/
(Prerefunded), 9/1/2001 Aa 553,125
- -------------------------------------------------------------------------------
270,000 Montgomery County, OH, 5.60% GO Bonds,
12/1/2005 Aa 283,500
- -------------------------------------------------------------------------------
285,000 Montgomery County, OH, 5.75% GO Bonds,
12/1/2006 Aa 301,031
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, Garbage & Refuse
Revenue Bonds (FGIC Insured), 6.60%,
11/1/2010 Aaa 533,125
- -------------------------------------------------------------------------------
500,000 Northeast, OH, Regional Sewer District,
6.40% (Wastewater Improvement)/(AMBAC
Insured), 11/15/2003 Aaa 559,375
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500,000 Ohio Municipal Electric Generation, 4.75%
(Agency Joint Venture 5)/(AMBAC Insured),
2/15/2000 AAA $511,250
- -------------------------------------------------------------------------------
250,000 Ohio State Building Authority (DAS Data
Center), 7.10% (Prerefunded), 10/1/97
(@102) A 268,125
- -------------------------------------------------------------------------------
250,000 Ohio State Building Authority (DAS Data
Center)/ETM), 7.00%, 10/1/97 A+ 262,813
- -------------------------------------------------------------------------------
500,000 Ohio State Building Authority, 6.20%,
6/1/2004 A 542,500
- -------------------------------------------------------------------------------
500,000 Ohio State Building Authority, 6.50%,
10/1/2004 A 551,875
- -------------------------------------------------------------------------------
125,000 Ohio State Building Authority, 7.25%
(Prerefunded), 3/1/99 (@102) A 138,750
- -------------------------------------------------------------------------------
125,000 Ohio State Building Authority, 7.25%
(Prerefunded), 8/1/99 (@102) A 139,844
- -------------------------------------------------------------------------------
250,000 Ohio State Capital Facilities (Series
1995A), 5.80% (AMBAC Insured), 6/1/2003 AAA 271,563
- -------------------------------------------------------------------------------
300,000 Ohio State Economic Development, 6.60%
(Sysco Food Service), 12/1/2003 A 339,375
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility
Commission, 7.10% (Xavier
University)/(MBIA Insured), 11/1/98 Aaa 270,000
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, 4.50%
(Oberlin College), 10/1/99 AA 254,063
- -------------------------------------------------------------------------------
555,000 Ohio State Higher Education Facility, 4.90%
(Ohio Northern University)/ (Connie Lee
Insured), 5/1/2003 AAA 559,163
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, 5.00%
(Oberlin College), 10/1/2002 Aa 259,688
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, 5.35%
(John Carroll University), 10/1/2005 A 260,938
- -------------------------------------------------------------------------------
200,000 Ohio State Higher Education Facility, 6.05%
(Bank One LOC), 12/1/98 AA 211,250
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, 6.10%
(University of Dayton)/(FGIC Insured),
12/1/2001 Aaa 273,750
- -------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- ------------------------------------------------------------------------------
$275,000 Ohio State Highway, 6.70%, 5/15/97 Aa $285,313
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission
Higher Education, 5.70% (AMBAC Insured),
11/1/99 AAA 264,063
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission
Higher Education, 6.90%, 6/1/98 A 265,313
- ------------------------------------------------------------------------------
500,000 Ohio State Public Facilities Commission
Mental Health, 6.75% (MBIA Insured),
12/01/2001 Aaa 551,250
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission
Mental Health, 7.30%, 6/1/2001 A 273,125
- ------------------------------------------------------------------------------
1,195,000 Ohio State Public Facilities Commission,
5.30% (FSA Insured), 12/1/97 Aaa 1,226,369
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission,
6.50% (MBIA Insured), 6/1/2000 Aaa 272,813
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission,
6.50% (MBIA Insured), 6/1/97 Aaa 259,063
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission,
7.125% (Prerefunded), 5/1/97 A 265,000
- ------------------------------------------------------------------------------
250,000 Ohio State Public Facilities Commission,
7.20%, 12/1/99 A 264,688
- ------------------------------------------------------------------------------
500,000 Ohio State University, 4.85%, 12/1/98 A1 511,875
- ------------------------------------------------------------------------------
500,000 Ohio State University, 5.30%, 12/1/2001 A1 525,625
- ------------------------------------------------------------------------------
250,000 Ohio State Water Develop- ment Authority
Revenue, 7.10% (Prerefunded), 6/1/98
(@102) A 272,188
- ------------------------------------------------------------------------------
500,000 Ohio State Water Develop- ment Authority,
5.65% (MBIA Insured), 6/1/2005 Aaa 528,750
- ------------------------------------------------------------------------------
650,000 Ohio State Water Development Authority,
5.00% (MBIA Insured), 12/1/98 AAA 667,875
- ------------------------------------------------------------------------------
250,000 Olmstead Falls, OH, Local School District,
6.30% (FGIC Insured), 12/15/2001 Aaa 278,125
- ------------------------------------------------------------------------------
175,000 Pickerington, OH, Local School District,
4.70% (FGIC Insured), 12/1/2004 AAA 176,750
- ------------------------------------------------------------------------------
250,000 Pickerington, OH, Local School District,
5.55% (AMBAC Insured), 12/1/2007 Aaa 262,188
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$200,000 Portage County, OH, 5.20% GO Bonds (AMBAC
Insured), 12/1/2001 AAA $209,500
- -------------------------------------------------------------------------------
200,000 Salem, OH, 6.00% Sewer System Revenue Bonds
(Series 1992)/(AMBAC Insured), 2/1/2001 Aaa 203,546
- -------------------------------------------------------------------------------
250,000 Sandusky County, OH, 6.65% (AMBAC Insured),
12/1/98 Aaa 267,813
- -------------------------------------------------------------------------------
500,000 Solon, OH, 5.25%, 12/1/2007 Aa 513,125
- -------------------------------------------------------------------------------
150,000 Solon, OH, 5.65%, 12/1/2005 Aa 159,750
- -------------------------------------------------------------------------------
250,000 Solon, OH, 6.55%, 12/1/2000 Aa 274,688
- -------------------------------------------------------------------------------
250,000 Solon, OH, 6.65%, 12/1/2001 Aa 275,625
- -------------------------------------------------------------------------------
250,000 Solon, OH, School District, 6.85%,
12/1/2000 Aa 278,438
- -------------------------------------------------------------------------------
245,000 South Euclid, OH, Recreational Facilities,
6.15%, 12/1/2000 A1 264,600
- -------------------------------------------------------------------------------
250,000 South Western City School District, 6.00%
(AMBAC Insured), 12/1/2004 AAA 272,813
- -------------------------------------------------------------------------------
250,000 South Western City School District, 6.10%
(Escrowed to Maturity), 12/1/99 Baa 266,875
- -------------------------------------------------------------------------------
250,000 Springfield, OH, Local School District,
6.00%, 12/1/2002 A 273,750
- -------------------------------------------------------------------------------
250,000 State of Ohio, 4.50%, 5/15/2000 Aa 252,813
- -------------------------------------------------------------------------------
400,000 State of Ohio, 4.50%, 8/1/2001 Aa 403,500
- -------------------------------------------------------------------------------
500,000 State of Ohio, 4.80% Highway Revenue Bonds,
5/15/2001 AA+ 516,250
- -------------------------------------------------------------------------------
250,000 Summit County, OH, 5.65% GO Bonds (MBIA
Insured), 12/1/2007 AAA 264,375
- -------------------------------------------------------------------------------
500,000 Toledo, OH, Sewer System Revenue, 7.25%
(MBIA Insured), 11/15/2000 Aaa 548,125
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, 5.15% Revenue
Bonds (Series R5), 6/1/2005 A1 255,938
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, 5.60%,
6/1/2009 A1 255,625
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, 6.40% (MBIA
Insured), 12/1/2003 A1 276,250
- -------------------------------------------------------------------------------
250,000 University of Toledo, 5.00% (FGIC Insured),
6/1/2008 Aaa 249,688
- -------------------------------------------------------------------------------
200,000 Upper Arlington, OH, City School, 6.80%,
12/1/99 A1 218,250
- -------------------------------------------------------------------------------
175,000 Warren County, OH, Sewer Improvement GO,
5.25%, 12/1/2008 Aa 179,594
- -------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND December 31, 1995
<TABLE>
- -----------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -----------------------------------------------------------------------------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -----------------------------------------------------------------------------
$235,000 Warren County, OH, Waterworks Revenue
Bond/(FGIC Insured)
6.10%, 12/1/2002 Aaa $257,325
- -----------------------------------------------------------------------------
185,000 Warren County, OH, GO, 5.35%, 12/1/2009 Aa 189,856
- -----------------------------------------------------------------------------
400,000 Warren County, OH, Water Improvement, GO,
5.25%, 12/1/2007 Aa 413,500
- -----------------------------------------------------------------------------
170,000 Warren County, OH, Sewer System Revenue,
6.95% (FGIC Insured), 12/1/2002 Aaa 193,375
- -----------------------------------------------------------------------------
470,000 Westerville, OH, Water Systems, 5.90%,
12/1/2004 Aa 515,238
- -----------------------------------------------------------------------------
250,000 Worthington, OH, City School District,
7.15% (MBIA Insured), 12/1/2000 Aaa 279,375
- -----------------------------------------------------------------------------
250,000 Worthington, OH, City School District,
5.85% (FGIC Insured), 6/1/2002 Aaa 269,063
- -----------------------------------------------------------------------------
250,000 Wright State University, 5.00% (AMBAC
Insured), 5/1/2006 Aaa 255,938
- -----------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $55,223,428) $58,619,083
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
CREDIT
RATING
MOODY'S MARKET
PRINCIPAL AMOUNT OR S&P(D) VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES - 4.7%
- -------------------------------------------------------------------------------
$425,000 Cincinnati, OH, 5.4%, City School District,
6/1/96 A- $428,081
- -------------------------------------------------------------------------------
250,000 Columbus, OH, 7.00%, 5/1/96 AAA 252,923
- -------------------------------------------------------------------------------
500,000 Columbus, OH, Sewer Revenue Bond, 7.30%,
6/1/96 A1 507,640
- -------------------------------------------------------------------------------
250,000 Franklin County, OH, 6.40% Revenue
Anticipation Bonds (Convention
Authority)/(MBIA Insured), 12/1/96 Aaa 256,303
- -------------------------------------------------------------------------------
700,000 Ohio State Air Quality Authority, Daily
VRDNs 700,000
- -------------------------------------------------------------------------------
250,000 Ohio State Water Development Authority
Revenue, 7.15% (AMBAC Insured)/(ETM),
6/1/96 Aaa 253,598
- -------------------------------------------------------------------------------
225,000 Upper Arlington, OH, City School 6.70%
(University of Dayton)/(FGIC Insured),
12/1/96 Aaa 231,228
- -------------------------------------------------------------------------------
250,000 Worthington, OH, City School District,
6.90%, (MBIA Insured), 12/1/96 Aaa 257,385
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST, $2,853,222) 2,887,158
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST, $58,076,650) $61,506,241
- -------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
<TABLE>
- -----------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS - 46.3%
- -----------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 4.2%
$1,000,000 Abbey National Public Limited Company 6.69%,
10/17/2005 $1,035,000
1,000,000 ABN AMRO Bank Notes 7.25%, 5/31/2005 1,073,750
1,000,000 Banc One, 7.00%, 07/15/2005 1,048,750
250,000 BankAmerica Corp., 7.75%, 7/15/2002 272,188
250,000 Citicorp, 9.75%, 8/1/99 280,625
500,000 Comerica Bank Notes, 9.75%, 5/1/99 556,875
500,000 Comerica Bank, Detroit, 5.95%, 9/15/97 503,750
1,000,000 Mellon Bank N.A., 6.50%, 8/01/2005 1,011,250
250,000 Security Pacific Corp., 9.75%, 5/15/99 278,438
- -----------------------------------------------------------------------
6,060,626
- -----------------------------------------------------------------------
BASIC INDUSTRY - 0.8%
500,000 Air Products & Chemicals, 8.875%, 8/1/2001 572,500
250,000 Arco Chemical Co., 9.90%, 11/1/2000 291,875
250,000 Weyerhaeuser Co., 9.05%, 2/1/2003 292,188
- -----------------------------------------------------------------------
1,156,563
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- --------------------------------------------------------------------------
CAPITAL GOODS - 0.8%
$250,000 Caterpillar, Inc., 9.375%, 7/15/2000 $284,375
250,000 Deere & Co., 8.25%, 6/1/96 252,813
500,000 Watts Industries, 8.375%, 12/1/2003 566,250
- --------------------------------------------------------------------------
1,103,438
- --------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 11.4%
1,500,000 American Home Products, 6.50%, 10/15/2002 1,539,375
1,000,000 Bergen Brunswiq, 7.25%, 6/1/2005 1,066,250
1,000,000 Carnival Corp., 6.15%, 10/1/2003 990,000
1,000,000 Columbia/HCA Healthcare 8.85%, 1/01/2007 1,187,500
250,000 Dayton Hudson Corp., 10.00%, 12/1/2000 291,250
750,000 Grand Met Investment Corp., 7.125%, 9/15/2004 797,813
250,000 Great Atlantic & Pacific Tea, Inc., 9.125%, 1/15/98 259,375
1,000,000 Hertz Corp., 7.00%, 7/15/2003 1,046,250
500,000 Joseph E. Seagram & Sons, Inc., 7.00%, 4/15/2008 524,375
1,000,000 Limited, Inc., 7.80%, 05/15/2002 1,076,250
250,000 Limited, Inc., 9.125%, 2/1/2001 280,625
750,000 May Dept. Stores Co., 9.875%, 6/15/2000 868,125
250,000 Nordstrom, Inc., 8.875%, 2/15/98 265,938
</TABLE>
23
<PAGE>
Portfolio of Investments
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
<TABLE>
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ------------------------------------------------------------------------
CONSUMER GOODS AND SERVICES (CONTINUED)
$500,000 Philip Morris Co. Inc., 7.50%, 3/15/97 $510,625
500,000 Philip Morris Co. Inc., 7.625%, 5/15/2002 534,375
1,000,000 Ralston Purina Notes, 9.25%, 10/15/2009 1,253,750
500,000 Scripps Howard, Inc., 7.375%, 12/15/98 521,250
1,000,000 Service Corp. Int'l., 8.375%, 12/15/2004 1,146,250
250,000 Super Value Stores, Inc., 8.875%, 6/15/99 273,438
250,000 Universal Corp., 9.25%, 2/15/2001 285,313
1,500,000 V.F. Corp., 7.60%, 4/1/2004 1,631,250
- ------------------------------------------------------------------------
16,349,377
- ------------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 0.9%
250,000 Alco Standard Corp., 8.875%, 4/15/2001 278,125
250,000 Harsco Corp., 8.75%, 5/15/96 252,813
500,000 United Technologies Corp., 9.625%, 5/15/99 508,125
250,000 Whirlpool Corp., 9.50%, 6/15/2000 284,688
- ------------------------------------------------------------------------
1,323,751
- ------------------------------------------------------------------------
ENERGY--OIL & GAS - 0.5%
500,000 Consolidated Natural Gas Co., 5.875%, 10/1/98 503,125
250,000 Pennzoil Co., 9.625%, 11/15/99 278,438
- ------------------------------------------------------------------------
781,563
- ------------------------------------------------------------------------
FINANCE - 6.2%
1,000,000 Bear Stearns, 6.625%, 1/15/2004 1,011,250
750,000 Bell Atlantic Financial, 6.625%, 11/30/97 764,063
750,000 BHP U.S. Finance Corp., 7.00%, 12/1/97 767,813
1,000,000 Countrywide Funding Corp., 8.25%, 7/15/2002 1,105,000
1,000,000 Dean Witter Discover, 6.00%, 3/1/98 1,006,250
250,000 Dow Capital, B.V., 8.25%, 2/15/96 250,625
500,000 Eaton Off Shore Ltd., 9.00%, 2/15/2001 562,500
1,000,000 Ford Motor Credit Corp., 7.75%, 3/15/2005 1,100,000
250,000 International Lease Finance Co., 6.50%, 7/15/97 253,438
1,000,000 MBNA Corp. Notes, 6.875%, 6/1/2005 1,038,750
1,000,000 Salomon Brothers, 6.75%, 1/15/2006 972,500
- ------------------------------------------------------------------------
8,832,189
- ------------------------------------------------------------------------
FOREIGN INDUSTRIAL - 2.9%
1,000,000 Canadian National Railroad, 7.00%, 3/15/2004 1,036,250
750,000 Hydro-Quebec, Canada, 7.375%, 2/1/2003 797,813
500,000 Northern Telecom, Ltd., 8.75%, 8/12/2001 565,625
1,000,000 Philips Electronics, 8.375%, 9/15/2006 1,136,250
615,000 Rhone Poulnec, 7.75%, 1/15/2002 659,588
- ------------------------------------------------------------------------
4,195,526
- ------------------------------------------------------------------------
FOREIGN SOVEREIGN - 5.1%
1,000,000 Barcelona City, Spain 8.125%, 2/15/2005 1,123,750
500,000 Province of Ontario, Canada, 5.70%, 10/1/97 503,125
500,000 Province of Ontario, Canada, 6.125%, 6/28/2000 506,875
1,000,000 Province of Ontario, Canada, 7.375%, 1/27/2003 1,077,500
1,000,000 Province of Quebec, Canada, 8.625%, 1/19/2005 1,153,750
250,000 Province of Quebec, Canada, 8.80%, 4/15/2003 286,563
1,000,000 Republic of Finland, 7.875%, 7/28/2004 1,125,000
1,550,000 Republic of Iceland, 6.125%, 2/1/2004 1,534,500
- ------------------------------------------------------------------------
7,311,063
- ------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 6.2%
500,000 Baltimore Gas & Electric Co., 6.625%, 3/15/2008 518,750
1,000,000 Big Rivers Electric, 9.50%, 2/15/2017 1,107,500
1,000,000 Cajun Electric Power, 9.52%, 3/15/2019 1,110,000
500,000 Commonwealth Edison, 9.375%, 2/15/2000 555,000
200,000 Houston Lighting & Power Co., 6.75%, 11/1/97 202,000
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES (CONTINUED)
$815,000 Iowa Electric Power & Light, 8.625%, 5/15/2001 $913,819
1,000,000 Minnesota Power & Light, 7.75%, 6/1/2007 1,082,500
1,000,000 Northwestern Public Services, 7.10%, 8/1/2005 1,063,750
750,000 Orange & Rockland Utilities, Inc., 6.50%, 10/15/97 761,250
1,000,000 Soyland Power Co-op, Inc., 9.63%, 9/30/2011 1,092,500
500,000 Western Resources Inc., 7.25%, 7/1/99 520,000
- -----------------------------------------------------------------------------
8,927,069
- -----------------------------------------------------------------------------
INSURANCE - 3.3%
1,000,000 Lincoln National Corp., 7.25%, 5/15/2005 1,061,250
1,000,000 London Insurance Grp., 6.875%, 9/15/2005 1,031,250
1,500,000 MBIA, Inc., 9.00%, 2/15/2001 1,696,875
1,000,000 U.S. Life Notes, 6.375%, 6/15/2000 1,005,000
- -----------------------------------------------------------------------------
4,794,375
- -----------------------------------------------------------------------------
TECHNOLOGY - 1.2%
500,000 International Business Machines, 6.375%, 6/15/2000 511,875
1,000,000 Texas Instruments Notes, 9.25%, 06/15/2003 1,177,500
- -----------------------------------------------------------------------------
1,689,375
- -----------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION COMPANIES - 2.6%
1,000,000 Comsat Corp., 8.95%, 5/15/2001 1,130,000
1,000,000 General Telephone of the Southeast, 7.625%, 7/1/2002 1,016,250
900,000 GTE Corp., 9.10%, 6/1/2003 1,041,750
500,000 Southwestern Bell Telephone Co., 6.625%, 4/1/2005 517,500
- -----------------------------------------------------------------------------
3,705,500
- -----------------------------------------------------------------------------
TRANSPORTATION - 0.2%
250,000 Union Pacific Corp., 9.625%, 12/15/2002 297,500
- -----------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $62,310,619) 66,527,915
- -----------------------------------------------------------------------------
GOVERNMENT BONDS - 50.6%
- -----------------------------------------------------------------------------
GOVERNMENT AGENCIES - 8.3%
3,000,000 Federal Home Loan Bank, 9.00%, 12/19/97 3,145,620
750,000 Federal National Mortgage Association, 9.40%, 8/10/98 820,215
1,913,426 GNMA Pool Number 345128, 6.50%,
1/15/2024 1,899,673
987,460 GNMA Pool Number 352982, 7.50%,
5/15/2024 1,015,850
1,939,542 GNMA Pool Number 372962, 7.00%,
3/15/2024 1,963,180
1,003,152 GNMA Pool Number 373015, 8.00%,
6/15/2024 1,045,159
1,844,682 GNMA Pool Number 391615, 8.50%,
9/15/2024 1,936,916
- -----------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $11,405,207) 11,826,613
- -----------------------------------------------------------------------------
U.S. TREASURY SECURITIES - 42.3%
2,000,000 United States Treasury Note, 6.875%, 3/31/2000 2,113,800
1,000,000 United States Treasury Note, 7.00%,
4/15/99 1,050,850
9,000,000 United States Treasury Note, 7.125%, 2/29/2000 9,581,939
8,000,000 United States Treasury Note, 7.25%,
5/15/2004 8,883,519
</TABLE>
24
<PAGE>
Portfolio of Investments
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
<TABLE>
- -----------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY SECURITIES (CONTINUED)
- -----------------------------------------------------------------------
$1,500,000 United States Treasury Note, 7.25%, 8/31/96 $1,518,285
10,000,000 United States Treasury Note, 7.50%, 11/15/2001 11,021,299
3,000,000 United States Treasury Note, 7.50%, 2/15/2005 3,400,560
1,000,000 United States Treasury Note, 7.50%, 5/15/2002 1,108,920
2,500,000 United States Treasury Note, 7.875%, 8/15/2001 2,792,100
8,000,000 United States Treasury Note, 8.00%, 5/15/2001 8,956,560
3,500,000 United States Treasury Note, 8.00%, 8/15/99 3,803,590
1,000,000 United States Treasury Note, 8.50%, 11/15/2000 1,131,830
500,000 United States Treasury Note, 8.75%, 8/15/2000 567,965
2,000,000 United States Treasury Note, 9.125%, 5/15/99 2,232,360
1,000,000 United States Treasury Bond 8.75%, 8/15/20 1,341,060
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY SECURITIES (CONTINUED)
- ----------------------------------------------------------------------------
$1,000,000 United States Treasury Bond 9.035%, 2/15/06 $1,286,080
- ----------------------------------------------------------------------------
TOTAL U.S. TREASURY SECURITIES (IDENTIFIED COST
$55,268,202) 60,790,717
- ----------------------------------------------------------------------------
TOTAL GOVERNMENT BONDS (IDENTIFIED COST $66,673,409) $72,617,330
- ----------------------------------------------------------------------------
(F) COMMERCIAL PAPER - 1.7%
- ----------------------------------------------------------------------------
FINANCE
2,445,094 General Electric Capital Corp., 5.55%, 1/2/96 (at
amortized cost) 2,445,094
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $131,429,122) $141,590,339
- ----------------------------------------------------------------------------
</TABLE>
See Notes to Portfolio of Investments.
-----------------------------
THE MONITOR MORTGAGE SECURITIES FUND December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT (H) VALUE
- --------------------------------------------
<C> <S> <C>
LONG-TERM OBLIGATIONS - 114.9%
- --------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. -
32.0%
$4,733,925 7.00%,
11/15/2004 $4,754,754
281,061 8.75%, Series
220007,
8/1/2001 292,216
204,860 9.50%, Series
380059,
10/1/2004 214,335
2,923,824 6.50%, Series
L90010,
1/1/1998 2,950,314
151,552 9.00%, Series
N90034,
11/1/1998 156,288
813,567 REMIC, Inv.
Flt., 6.417%,
Series 1500SH,
4/15/2023 718,420
731,549 REMIC, Inv.
Flt., 8.243%,
Series 15420B,
7/15/2022 591,179
707,275 REMIC, Inv.
Flt., 7.765%,
Series 1564SE,
8/15/2008 577,575
1,782,343 REMIC, Inv.
Flt., 7.027%,
Series 1647SB,
12/15/2008 1,411,508
2,345,325 REMIC, Inv.
Flt., 6.630%,
Series 1606SB,
11/15/2008 2,297,434
54,885 REMIC, Inv.
Flt., 12.921%,
Series 1041G,
2/15/2021 57,582
1,000,000 REMIC, Inv.
Flt., 9.178%,
Series 1422SA,
11/15/2007 910,250
16,681,959 REMIC, Inv.
Flt., IO,
2.100%, Series
1669JB,
7/15/2020 765,869
4,912,194 REMIC, Inv.
Flt., IO,
3.500%, Series
1443L,
4/15/2020 244,431
3,484,432 REMIC, Inv.
Flt., IO,
3.45%, Series
1454MJ,
4/15/2022 235,373
27,484 REMIC, Inv.
Flt., IO,
434.00%, Series
1394KD,
3/15/2022 63,442
1,247,352 REMIC, Z-Bond,
7.00%, Series
1388L,
10/15/2007 1,259,713
- --------------------------------------------
TOTAL FEDERAL HOME LOAN
MORTGAGE CORP.
(IDENTIFIED COST
$18,647,894) 17,500,683
- --------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
55.8%
4,530,213 6.516%,
4/24/2025 4,539,092
1,332,310 7.50%, 12/1/2001 1,363,540
5,000,000 8.00%, 1/1/2008 5,178,100(g)
5,000,000 7.50%, 1/1/2008 5,140,600(g)
2,697,816 7.50%, 1/1/2002 2,761,053
1,877,426 8.00%, 3/1/2002 1,928,473
471,160 8.00%, 7/1/2002 483,970
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT (H) VALUE
- -------------------------------------------
<C> <S> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(CONTINUED)
$ 341,621 8.50%, 2/1/2005 $356,461
1,920,904 7.50%, 8/1/10 1,974,920
473,523 7.50%, 9/1/09 486,838
9,000,000 REMIC, IO, 6.50%,
Series 1994-
28JC, 3/25/2023 1,591,020
5,191,933 REMIC, IO, 7.50%,
Series 1993-
G34PV, 2/25/2017 704,805
450,000 REMIC, Inv. Flt.,
7.657%, Series
1993-175SD,
9/25/2008 356,175
1,000,000 REMIC, Inv. Flt.,
9.063%, Series
1992-201SB,
10/25/2022 880,700
289,999 REMIC, Inv. Flt.,
7.224%, Series
1993-85SA,
6/25/2008 219,930
1,939,448 REMIC, Inv. Flt.,
7.115%, Series
1994-30S,
6/25/2023 1,693,739
7,440,820 REMIC, Inv. Flt.,
IO, 2.256%,
Series 1993-
G36S, 2/25/2022 447,330
7,022,674 REMIC, Inv. Flt.,
IO, 2.256%,
Series 1993-
G35S, 1/25/2022 422,484
183,577 REMIC, Inv. Flt.,
IO, 2.106%,
Series 1993-
82SA, 5/25/2023 3,348
- -------------------------------------------
TOTAL FEDERAL NATIONAL MORT-
GAGE ASSOCIATION
(IDENTIFIED COST
$30,975,647) 30,532,578
- -------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
- 17.7%
743,687 8.50%, 4/15/2006-
5/15/2007 782,269
4,849,029 7.00%, 1/15/2008-
12/15/2010 4,971,260
3,709,213 GNMA II, 9.00%,
7/20/25 3,900,460
- -------------------------------------------
TOTAL GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION
(IDENTIFIED COST $9,624,337) 9,653,989
- -------------------------------------------
U.S. TREASURY NOTE - 9.4%
4,750,000 8.00%, 8/15/99
(identified cost
$4,779,889) 5,160,733
- -------------------------------------------
TOTAL LONG-TERM OBLIGATIONS
(IDENTIFIED COST
$64,027,767) 62,847,983
- -------------------------------------------
(B) REPURCHASE AGREEMENT - 2.9%
- -------------------------------------------
1,598,000 Morgan Stanley &
Co., Inc.,
5.75%, dated
12/29/95, due
1/2/96 (at
amortized cost) 1,598,000
- -------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED
COST $65,625,767) $64,445,983
- -------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
25
<PAGE>
---------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME December 31, 1995
SECURITIES FUND
<TABLE>
- --------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS - 66.0%
- --------------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 11.5%
$1,000,000 Bank of Montreal, 10.00%, 9/1/98 $1,095,000
1,000,000 Bankers Trust, 9.20%, 7/15/99 1,100,000
1,000,000 Barnett Banks, 8.50%, 3/1/99 1,076,250
1,100,000 Chase Manhattan Corp., 10.00%, 6/15/99 1,241,625
1,000,000 Chemical NY Corp., 9.75%, 6/15/99 1,121,250
1,000,000 Citicorp, 9.00%, 4/15/99 1,092,500
500,000 Comerica Bank Notes, 9.75%, 5/1/99 556,875
1,000,000 Comerica Bank, Detroit, 5.95%, 9/15/97 1,007,500
1,000,000 Dominion Bankshares, 9.625%, 6/15/99 1,112,500
1,000,000 First Chicago, 9.875%, 7/1/99 1,126,250
500,000 First Fidelity Bancorp, 9.625%, 8/15/99 560,625
1,000,000 First Security Bank Utah, 7.875%, 10/15/99 1,063,750
1,000,000 Golden West Financial, 9.15%, 5/23/98 1,077,500
500,000 Key Corp., 8.40%, 4/1/99 536,875
1,000,000 Mellon Corp., 6.30%, 6/1/2000 1,018,750
500,000 Sovran Financial, 9.75%, 6/15/99 558,750
- --------------------------------------------------------------------------
15,346,000
- --------------------------------------------------------------------------
BASIC INDUSTRY - 1.4%
250,000 Alcan Aluminum Ltd., 9.70%, 10/15/96 257,813
500,000 duPont (E.I.) deNemours & Co., 8.65%, 12/1/97 526,875
1,000,000 WMX Technologies,Inc., 8.25%, 11/15/99 1,082,500
- --------------------------------------------------------------------------
1,867,188
- --------------------------------------------------------------------------
CAPITAL GOODS - 1.1%
500,000 Baker Hughes, Inc., 7.625%, 2/15/99 522,500
1,000,000 Deere & Co., 8.25%, 6/1/96 1,011,250
- --------------------------------------------------------------------------
1,533,750
- --------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 8.9%
1,000,000 American Brands, 9.00%, 6/15/99 1,098,750
1,000,000 American Home Products, 7.70%, 2/15/2000 1,067,500
1,000,000 Columbia Healthcare, 6.50%, 3/15/99 1,017,500
1,400,000 Columbia Pictures Ent., 9.875%, 2/1/98 1,498,000
1,000,000 Dayton Hudson, 7.50%, 3/01/99 1,043,750
250,000 Dillard Dept Stores, Inc., 9.50%, 1/15/98 267,813
1,120,000 Dillard Dept Stores, Inc., 8.75%, 6/15/98 1,197,000
1,000,000 Pepsico Inc., 6.80%, 5/15/2000 1,040,000
500,000 Philip Morris, Inc., 6.375%, 1/15/98 505,625
1,000,000 Philip Morris, Inc., 7.375%, 2/15/98 1,042,500
500,000 Scripps Howard, Inc., 7.375%, 12/15/98 521,250
1,000,000 Super Value Stores, Inc., 8.875%, 6/15/99 1,093,750
500,000 Wal-Mart Stores, Inc., 8.00%, 5/1/96 504,375
- --------------------------------------------------------------------------
11,897,813
- --------------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 2.7%
750,000 Harsco Corp., 8.75%, 5/15/96 758,438
1,250,000 Loews Corp., 8.50%, 4/15/98 1,323,438
1,500,000 Martin Marietta Corp., 8.50%, 3/1/96 1,505,625
- --------------------------------------------------------------------------
3,587,501
- --------------------------------------------------------------------------
ENERGY-OIL & GAS - 2.8%
1,000,000 Burlington Resources, 7.15%, 5/1/99 1,041,250
1,000,000 Elf Aquitaine, 7.75%, 5/1/99 1,061,250
1,500,000 Texaco, Inc., 9.00%, 11/15/97 1,591,875
- --------------------------------------------------------------------------
3,694,375
- --------------------------------------------------------------------------
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------
FINANCE - 17.0%
1,000,000 American Express Credit, 7.375%, 2/1/99 $1,041,250
1,000,000 American General Finance, 6.875%, 7/1/99 1,031,250
1,050,000 Aristar, Inc., 7.875%, 2/15/99 1,111,688
1,000,000 Associates Corp. N.A., 8.70%, 1/1/97 1,031,250
1,000,000 Avco Financial Services, Inc., 5.875%, 10/15/97 1,005,000
1,200,000 Bear Stearns Co., 7.625%, 9/15/99 1,260,000
1,250,000 Bell Atlantic Financial, 6.625%, 11/30/97 1,273,438
1,250,000 BHP U.S. Finance Corp., 7.00%, 12/1/97 1,279,688
1,000,000 Chrysler Financial Corp., 13.25%, 10/15/99 1,242,500
500,000 CNA Financial, 8.875%, 3/1/98 531,875
1,000,000 Dean Witter Discover, 6.00%, 3/1/98 1,006,250
750,000 Dow Capital, B.V., 8.25%, 2/15/96 751,875
1,000,000 Ford Motor Credit Co., 7.75%, 10/1/99 1,062,500
1,000,000 General Motors Acceptance Corp., 7.00%, 3/1/2000 1,036,250
1,000,000 Goldman Sachs, 6.875%, 9/15/99 1,011,250
1,000,000 Household International, 6.00%, 3/15/99 1,003,750
1,250,000 IBM Credit Corp., 6.375%, 11/1/97 1,265,625
1,000,000 International Lease Finance Corp., 5.75%, 7/1/98 1,001,250
1,000,000 Lehman Bros. Inc., 7.625%, 8/1/98 1,033,750
500,000 Morgan Stanley Group, 7.875%, 12/15/98 526,250
1,000,000 Salomon, Inc., 9.375%, 4/15/98 1,061,250
250,000 Transamerica Finance Corp., 6.75%, 1/15/98 254,688
1,000,000 Xerox Credit Corp., 10.125%, 4/15/99 1,013,750
- -----------------------------------------------------------------------------
22,836,377
- -----------------------------------------------------------------------------
FOREIGN INDUSTRIAL - 1.5%
1,000,000 Hanson Finance (U.K.) PLC, 5.50%, 1/15/96 1,000,000
1,000,000 Rhone Poulenc, 6.75%, 10/15/99 1,026,250
- -----------------------------------------------------------------------------
2,026,250
- -----------------------------------------------------------------------------
FOREIGN SOVEREIGN - 3.7%
1,000,000 Korea Development Bank, 9.25%, 6/15/98 1,077,500
1,000,000 Province of Ontario, Canada, 5.70%, 10/1/97 1,006,250
1,500,000 Province of Quebec, 9.375%, 4/1/99 1,651,875
1,250,000 Republic of Finland, 6.75%, 11/24/97 1,281,250
- -----------------------------------------------------------------------------
5,016,875
- -----------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 5.0%
500,000 Empire District Electric Co., 5.70%, 5/1/98 501,875
500,000 Houston Lighting & Power Co., 6.75%, 11/1/97 505,000
1,000,000 Iowa Electric Light & Power, 7.60%, 3/1/99 1,053,750
1,000,000 National Rural Utilities, 8.50%, 2/15/98 1,056,250
1,250,000 Orange & Rockland Utilities, Inc., 6.50%, 10/15/97 1,268,750
1,000,000 Southern California Edison, 7.50%, 4/15/99 1,051,250
1,250,000 Southern California Gas Co., 6.50%, 12/15/97 1,268,750
- -----------------------------------------------------------------------------
6,705,625
- -----------------------------------------------------------------------------
</TABLE>
26
<PAGE>
Portfolio of Investments
---------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME (Continued)
SECURITIES FUND
<TABLE>
- ---------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
- ---------------------------------------------------------------
INSURANCE - 4.6%
$1,000,000 Allstate Corp., 5.875%, 6/15/98 $1,002,500
1,000,000 Cigna Corp., 8.00%, 9/1/96 1,014,500
1,000,000 Continental Corp., 8.25%, 4/15/99 1,066,250
1,000,000 Torchmark Corp., 9.625%, 5/1/98 1,077,500
1,000,000 Travelers, Inc., 7.75%, 6/15/99 1,058,750
1,000,000 U.S. Life Notes, 6.375%, 6/15/2000 1,005,000
- ---------------------------------------------------------------
6,224,500
- ---------------------------------------------------------------
TECHNOLOGY - 0.6%
750,000 Becton Dickinson & Co., 8.375%, 6/1/96 758,438
- ---------------------------------------------------------------
758,438
- ---------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION COMPANIES - 2.5%
1,250,000 Cincinnati Bell, Inc., 6.70%, 12/15/97 1,275,000
1,000,000 GTE Corp., 8.85%, 3/1/98 1,058,750
1,000,000 MCI Communications Corp., 6.25%, 3/23/99 1,015,000
- ---------------------------------------------------------------
3,348,750
- ---------------------------------------------------------------
TRANSPORTATION - 2.7%
765,000 Conrail Inc., 9.75%, 6/1/2000 878,794
1,500,000 CSX Corp., 9.50%, 8/1/2000 1,721,250
1,000,000 Union Pacific Corp., 6.25%, 3/15/99 1,010,000
- ---------------------------------------------------------------
3,610,044
- ---------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST,
$86,097,351) 88,453,486
- ---------------------------------------------------------------
</TABLE>
<TABLE>
- --------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- --------------------------------------------------------------------------
UNITED STATES TREASURY NOTES- 30.4%
- --------------------------------------------------------------------------
12,000,000 United States Treasury Note, 7.125%, 2/29/2000 $12,775,919
8,000,000 United States Treasury Note, 6.875%, 2/28/97 8,148,560
1,500,000 United States Treasury Note, 7.75%, 1/31/2000 1,629,930
12,000,000 United States Treasury Note, 6.25%, 8/31/2000 12,416,879
4,000,000 United States Treasury Note, 7.25%, 2/15/98 4,160,600
1,500,000 United States Treasury Note, 6.875%, 3/30/2000 1,585,350
- --------------------------------------------------------------------------
TOTAL UNITED STATES TREASURY NOTES (IDENTIFIED COST,
$39,213,163) 40,717,238
- --------------------------------------------------------------------------
(F) COMMERCIAL PAPER - 1.8%
- --------------------------------------------------------------------------
FINANCIAL - 1.8%
2,462,603 GE Capital Corp., 5.55%, 1/2/96
(at amortized cost) 2,462,603
- --------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $127,773,117) $131,633,327
- --------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
27
<PAGE>
Notes to Portfolios of Investments
*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)Each issue shows the coupon rate.
(g)Indicates securities subject to dollar roll transactions with a total market
value of $10,318,700.
(h)Securities with notional or nominal principal amounts show the current rate
which may vary from the stated rate.
The following abbreviations are used in this portfolio:
AMBAC--American Municipal Bond Assurance Corporation ARM--Adjustable Rate
Mortgage BANs--Bond Anticipation Notes BIG--Bond Investors Guaranty ETM--
Escrowed to Maturity FGIC--Financial Guaranty Insurance Company FSA--Financial
Security Assurance GNMA--Government National Mortgage Association GO--General
Obligation IDA--Industrial Development Authority IDR--Industrial Development
Revenue
Inv. Flt.--Inverse Floater IO--
Interest Only LOC--Letter of Credit
LT--Limited Tax MBIA--Municipal Bond
Investors Assurance PLC--Public
Limited Company REMIC--Real Estate
Mortgage Investment Conduit UT--
Unlimited Tax/Utah VRDNs--Variable
Rate Demand Notes Z-Bond--Accrual
Bond
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, 1995.
<TABLE>
<CAPTION>
COST OF
INVESTMENTS NET UNREALIZED GROSS GROSS
FOR FEDERAL TAX APPRECIATION/ UNREALIZED UNREALIZED TOTAL
THE MONITOR FUNDS PURPOSES (DEPRECIATION) APPRECIATION DEPRECIATION NET ASSETS
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $389,420,201* -- -- -- 388,051,843
Ohio Municipal Money
Market Fund 111,726,818* -- -- -- 112,020,226
U.S. Treasury Money
Market Fund 317,449,010* -- -- -- 316,115,124
Growth Fund 112,610,835 35,146,656 35,404,033 (257,377) 147,198,603
Income Equity Fund 104,630,731 36,571,479 36,571,479 -- 141,892,200
Ohio Tax-Free Fund 58,076,650 3,429,565 3,429,878 (313) 62,032,223
Fixed Income Securities
Fund 131,429,122 10,161,206 10,217,211 (56,005) 143,599,231
Mortgage Securities Fund 65,625,767 (1,179,785) 1,499,076 (2,678,861) 54,675,402
Short/Intermediate Fixed
Income Securities Fund 127,773,117 3,860,205 3,914,112 (53,907) 133,950,519
- ----------------------------------------------------------------------------------------------
</TABLE>
*At amortized cost.
(See Notes which are an integral part of the Financial Statements)
28
<PAGE>
[This Page Intentionally Left Blank]
29
<PAGE>
Statements of Operations
YEAR ENDED DECEMBER 31, 1995
(All numbers in thousands)
<TABLE>
<CAPTION>
THE MONITOR THE MONITOR
THE MONITOR OHIO MUNICIPAL U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $21,473 $3,728 $18,910
Dividends -- -- --
- ---------------------------------------------------------------------------------
Total income 21,473 3,728 18,910
- ---------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 1,081 284 649
Directors'/Trustees' fees 8 2 9
Administrative personnel and 537 141 483
services fee
Custodian and recordkeeping fees and 202 53 182
expenses
Transfer and dividend disbursing 65 55 60
agent fees and expenses
Share registration costs 41 20 25
Auditing fees 14 16 19
Legal fees 13 1 19
Printing and postage 13 9 13
Insurance premiums 11 5 9
Distribution services fees 70 44 77
Miscellaneous 10 4 6
- ---------------------------------------------------------------------------------
Total expenses 2,065 634 1,551
- ---------------------------------------------------------------------------------
Deduct--
Waiver of investment advisory fees -- (126) --
Reimbursement of other operating -- -- --
expenses by the adviser
Waiver of distribution services fees -- -- (46)
Waiver of administrative personnel (100) (68) (90)
and services fees
- ---------------------------------------------------------------------------------
NET EXPENSES 1,965 440 1,415
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME 19,508 3,288 17,495
- ---------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) on -- -- --
investments
Net change in unrealized -- -- --
appreciation (depreciation) of
investments
- ---------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS -- -- --
- ---------------------------------------------------------------------------------
CHANGE IN NET ASSETS RESULTING FROM $19,508 $3,288 $17,495
OPERATIONS
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
Statements of Assets & Liabilities
DECEMBER 31, 1995
(All numbers in thousands except per share amounts)
<TABLE>
<CAPTION>
THE MONITOR THE MONITOR
THE MONITOR OHIO MUNICIPAL U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments at value $340,801 $111,727 $148,473
Investments in repurchase 48,619 -- 168,976
agreements
Cash -- 1 --
Dividends and interest receivable 248 660 115
Receivable for investments sold -- -- --
Receivable for shares sold 337 45 120
Deferred expenses -- -- --
- ------------------------------------------------------------------------------
Total assets 390,005 112,433 317,684
- ------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased -- -- --
Payable for shares redeemed 11 -- --
Payable for dollar roll -- -- --
transactions
Income distribution payable 1,739 341 1,430
Accrued expenses 103 55 84
Payable to Adviser 100 17 55
- ------------------------------------------------------------------------------
Total liabilities 1,953 413 1,569
- ------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 388,052 112,020 316,115
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 $388,052 $112,020 $316,115
- ------------------------------------------------------------------------------
NET ASSETS:
Trust Shares $296,764 $ 56,551 $277,142
Investment Shares $ 91,288 $ 55,469 $ 38,973
- ------------------------------------------------------------------------------
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 296,764 56,551 277,142
Investment Shares 91,288 55,469 38,973
- ------------------------------------------------------------------------------
Total shares outstanding ($0.001 388,052 112,020 316,115
par value)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Investments, at identified cost $389,420 $111,727 $317,449
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
*Computation of Offering price: 100/96 of net asset value.
+Includes dollar roll income of
$752.
**Computation of Offering price: 100/98 of net asset value.
(See Notes which are an integral part of the Financial Statements)
30
<PAGE>
<TABLE>
<CAPTION>
THE MONITOR
THE MONITOR FIXED THE MONITOR THE MONITOR
THE MONITOR OHIO INCOME MORTGAGE SHORT/INTERMEDIATE
THE MONITOR INCOME TAX-FREE SECURITIES SECURITIES FIXED INCOME
GROWTH FUND EQUITY FUND FUND FUND FUND SECURITIES FUND
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 497 $ 1,557 $3,387 $ 9,641 $ 4,511+ $ 8,799
2,395 4,386 -- -- -- --
- --------------------------------------------------------------------------------------
2,892 5,943 3,387 9,641 4,511 8,799
- --------------------------------------------------------------------------------------
790 765 307 672 289 660
4 3 2 4 2 4
196 133 92 200 85 137
74 71 34 76 118 74
68 30 52 64 59 31
19 10 1 18 30 11
17 16 13 18 17 26
1 1 4 5 4 8
15 11 9 15 15 13
5 1 5 12 10 6
9 -- 6 5 11 --
5 2 3 7 12 7
- --------------------------------------------------------------------------------------
1,203 1,043 528 1,096 652 977
- --------------------------------------------------------------------------------------
-- -- -- -- (270) --
-- -- -- -- (15) --
-- -- -- -- (5) --
(68) -- (46) (65) (75) --
- --------------------------------------------------------------------------------------
1,135 1,043 482 1,031 287 977
- --------------------------------------------------------------------------------------
1,757 4,900 2,905 8,610 4,224 7,822
- --------------------------------------------------------------------------------------
13,943 323 (10) (420) (10,894) (257)
19,016 27,588 3,665 13,787 22,343 8,241
- --------------------------------------------------------------------------------------
32,959 27,911 3,655 13,367 11,449 7,984
- --------------------------------------------------------------------------------------
$34,716 $32,811 $6,560 $21,977 $ 15,673 $15,806
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THE MONITOR
THE MONITOR FIXED THE MONITOR THE MONITOR
THE MONITOR OHIO INCOME MORTGAGE SHORT/INTERMEDIATE
THE MONITOR INCOME TAX-FREE SECURITIES SECURITIES FIXED INCOME
GROWTH FUND EQUITY FUND FUND FUND FUND SECURITIES FUND
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$147,757 $141,202 $61,506 $141,590 $ 62,848 $131,633
-- -- -- -- 1,598 --
-- -- 118 -- 1 --
287 -- 478 2,264 524 2,461
-- 776 -- -- 44 67
71 61 -- 38 -- --
-- -- -- -- 10 --
- ----------------------------------------------------------------------------------------
148,115 142,039 62,102 143,892 65,025 134,161
- ----------------------------------------------------------------------------------------
-- 15 -- -- -- --
747 -- 1 157 48 105
-- -- -- -- 10,250 --
-- -- -- -- -- --
94 60 43 76 52 49
76 72 26 60 -- 56
- ----------------------------------------------------------------------------------------
917 147 70 293 10,350 210
- ----------------------------------------------------------------------------------------
112,033 105,264 58,579 135,567 78,101 130,413
35,146 36,571 3,429 10,161 (1,180) 3,860
-- 33 (10) (2,221) (21,884) (457)
-- -- -- -- (362) --
19 24 34 92 -- 135
- ----------------------------------------------------------------------------------------
$147,198 $141,892 $62,032 $143,599 $ 54,675 $133,951
- ----------------------------------------------------------------------------------------
$143,421 $141,892 $59,869 $141,423 $ 52,667 $133,951
$ 3,777 -- $ 2,163 $ 2,176 $ 2,008 --
- ----------------------------------------------------------------------------------------
$30.81 $27.25 $21.77 $21.78 $8.09 $20.35
$30.81 -- $21.77 $21.78 $8.12 --
- ----------------------------------------------------------------------------------------
$30.81 $27.25 $21.77 $21.78 $8.09 $20.35
$32.09* -- $22.21** $22.22** $8.29** --
- ----------------------------------------------------------------------------------------
4,654 5,207 2,750 6,494 6,510 6,583
123 -- 99 100 247 --
- ----------------------------------------------------------------------------------------
4,777 5,207 2,849 6,594 6,757 6,583
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
$112,611 $104,631 $58,077 $131,429 $ 65,626 $127,773
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
Statements of Changes In Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
THE
THE MONITOR
THE MONITOR OHIO U.S. TREASURY THE
MONITOR MONEY MUNICIPAL MONEY MONEY MARKET MONITOR GROWTH
MARKET FUND MARKET FUND FUND FUND
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1995 1994 1995 1994 1995 1994 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS--
Net investment income $ 19,508 $ 12,722 $ 3,288 $ 1,608 $ 17,495 $ 9,290 $ 1,757 $ 1,632
Net realized gain (loss)
on investment
transactions -- -- -- -- -- -- 13,943 289
Net change in unrealized
appreciation
(depreciation) of
investments -- -- -- -- -- -- 19,016 381
- ---------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 19,508 12,722 3,288 1,608 17,495 9,290 34,716 2,302
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM--
Net investment income:
Trust Shares (15,778) (11,713) (1,796) (882) (15,870) (9,022) (1,727) (1,568)
Investment Shares (3,730) (1,009) (1,492) (726) (1,625) (268) (39) (42)
Net realized gain on
investments:
Trust Shares -- -- -- -- -- -- (13,595) (280)
Investment Shares -- -- -- -- -- -- (348) (9)
Distributions in excess
of
net investment income:
Trust Shares -- -- -- -- -- -- -- --
Investment Shares -- -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Change in net assets
from distributions
to shareholders (19,508) (12,722) (3,288) (1,608) (17,495) (9,290) (15,709) (1,899)
- ---------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL)
TRANSACTIONS--
Proceeds from sale of
shares 768,319 655,673 205,658 160,243 908,100 569,508 25,574 19,171
Net asset value of
shares issued to
shareholders in payment
of
distributions declared 2,744 950 391 197 1,044 231 10,058 592
Cost of shares redeemed (712,445) (686,049) (170,787) (144,135) (869,957) (524,882) (14,116) (27,028)
- ---------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
share transactions 58,618 (29,426) 35,262 16,305 39,187 44,857 21,516 (7,265)
- ---------------------------------------------------------------------------------------------------------
Change in net assets 58,618 (29,426) 35,262 16,305 39,187 44,857 40,523 (6,862)
- ---------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 329,434 358,860 76,758 60,453 276,928 232,071 106,675 113,537
- ---------------------------------------------------------------------------------------------------------
End of period $388,052 $329,434 $112,020 $ 76,758 $316,115 $276,928 $147,198 $106,675
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Undistributed net
investment income
included in net assets
at end of period -- -- -- -- -- -- $ 19 $ 28
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
32
<PAGE>
<TABLE>
<CAPTION>
THE
THE MONITOR
THE THE MONITOR FIXED THE SHORT/INTERMEDIATE
MONITOR INCOME MONITOR OHIO INCOME SECURITIES MONITOR MORTGAGE FIXED INCOME
EQUITY FUND TAX-FREE FUND FUND SECURITIES FUND SECURITIES FUND
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1995 1994 1995 1994 1995 1994 1995 1994 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 4,900 $ 4,915 $ 2,905 $ 2,803 $ 8,610 $ 7,244 $ 4,224 $ 8,618 $ 7,822 $ 7,305
323 (290) (10) -- (420) (1,801) (10,894) (10,599) (257) (200)
27,588 (7,216) 3,665 (4,412) 13,787 (10,947) 22,343 (21,638) 8,241 (8,318)
- -------------------------------------------------------------------------------------------------------------
32,811 (2,591) 6,560 (1,609) 21,977 (5,504) 15,673 (23,619) 15,806 (1,213)
- -------------------------------------------------------------------------------------------------------------
(5,021) (4,805) (2,802) (2,670) (8,491) (7,377) (4,153) (8,326) (7,803) (7,912)
-- -- (101) (115) (126) (143) (157) (718) -- --
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- (348) (58) -- --
-- -- -- -- -- -- (14) (4) -- --
- -------------------------------------------------------------------------------------------------------------
(5,021) (4,805) (2,903) (2,785) (8,617) (7,520) (4,672) (9,106) (7,803) (7,912)
- -------------------------------------------------------------------------------------------------------------
11,621 13,781 10,263 17,971 21,336 31,386 1,086 8,288 20,923 34,446
1,669 1,580 204 216 3,426 3,143 552 3,682 3,294 3,221
(14,587) (28,184) (10,868) (17,396) (15,598) (15,096) (16,387) (19,816) (23,381) (27,327)
- -------------------------------------------------------------------------------------------------------------
(1,297) (12,823) (401) 791 9,164 19,433 (14,749) (7,846) 836 10,340
- -------------------------------------------------------------------------------------------------------------
26,493 (20,219) 3,256 (3,603) 22,524 6,409 (3,748) (40,571) 8,839 1,215
- -------------------------------------------------------------------------------------------------------------
115,399 135,618 58,776 62,379 121,075 114,666 58,423 98,994 125,112 123,897
- -------------------------------------------------------------------------------------------------------------
$141,892 $115,399 $62,032 $58,776 $143,599 $121,075 $54,675 $58,423 $133,951 $125,112
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
$ 24 $ 145 $ 34 $ 32 $ 92 $ 99 -- -- $ 135 $ 116
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
Statement of Cash Flows
YEAR ENDED DECEMBER 31, 1995
(All numbers in thousands)
<TABLE>
<CAPTION>
THE
MONITOR
MORTGAGE
SECURITIES
FUND
- -----------------------------------------------------------------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Investment income received $ 4,425
Payment of operating expenses (252)
Proceeds from sales and maturities of investments 165,872
Purchases of investments (142,164)
Net purchases of short-term investments 1,169
- -----------------------------------------------------------------
Cash provided by operating activities 29,050
- -----------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from Fund share activity (15,457)
Decrease on payable for dollar roll transactions (9,473)
Distributions paid (4,120)
- -----------------------------------------------------------------
Cash used by financing activities (29,050)
- -----------------------------------------------------------------
Net change in cash 0
Cash at beginning of period 1
- -----------------------------------------------------------------
Cash at end of period 1
- -----------------------------------------------------------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM
OPERATIONS TO CASH PROVIDED BY OPERATING ACTIVITIES:
Net increase in net assets resulting from operations 15,673
Net decrease in investments 13,451
Increase in interest receivable (74)
Decrease in receivable for investments sold 5,005
Decrease in deferred expenses 25
Decrease in payable for investments purchased (5,027)
Decrease in accrued expenses (3)
- -----------------------------------------------------------------
Cash provided by operating activities $ 29,050
- -----------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
34
<PAGE>
[This Page Intentionally Left Blank]
35
<PAGE>
Financial Highlights
MONEY MARKET FUNDS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
NET ASSET SHAREHOLDERS NET ASSET
VALUE, NET FROM NET VALUE,
YEAR ENDED BEGINNING INVESTMENT INVESTMENT END OF TOTAL
DECEMBER 31, OF PERIOD INCOME INCOME PERIOD RETURN(F)
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR MONEY
MARKET FUND
1987(a) $1.00 0.04 (0.04) $1.00 3.38%
1988 $1.00 0.07 (0.07) $1.00 7.45%
1989 $1.00 0.09 (0.09) $1.00 9.13%
1990 $1.00 0.08 (0.08) $1.00 8.10%
1991 $1.00 0.06 (0.06) $1.00 5.85%
1992 $1.00 0.03 (0.03) $1.00 3.44%
1993 $1.00 0.03 (0.03) $1.00 2.74%
1994 $1.00 0.04 (0.04) $1.00 3.86%
1995 $1.00 0.05 (0.05) $1.00 5.58%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
1987(b) $1.00 0.02 (0.02) $1.00 2.14%
1988 $1.00 0.05 (0.05) $1.00 4.89%
1989 $1.00 0.06 (0.06) $1.00 6.01%
1990 $1.00 0.05 (0.05) $1.00 5.43%
1991 $1.00 0.04 (0.04) $1.00 4.07%
1992 $1.00 0.03 (0.03) $1.00 2.61%
1993 $1.00 0.02 (0.02) $1.00 2.08%
1994 $1.00 0.02 (0.02) $1.00 2.41%
1995 $1.00 0.04 (0.04) $1.00 3.57%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1989(c) $1.00 0.02 (0.02) $1.00 1.37%
1990 $1.00 0.07 (0.07) $1.00 7.97%
1991 $1.00 0.05 (0.05) $1.00 5.66%
1992 $1.00 0.03 (0.03) $1.00 3.43%
1993 $1.00 0.03 (0.03) $1.00 2.77%
1994 $1.00 0.04 (0.04) $1.00 3.79%
1995 $1.00 0.05 (0.05) $1.00 5.53%
INVESTMENT SHARES
THE MONITOR MONEY
MARKET FUND
1991(d) $1.00 0.04 (0.04) $1.00 3.56%
1992 $1.00 0.03 (0.03) $1.00 3.34%
1993 $1.00 0.03 (0.03) $1.00 2.63%
1994 $1.00 0.04 (0.04) $1.00 3.76%
1995 $1.00 0.05 (0.05) $1.00 5.48%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
1991(d) $1.00 0.03 (0.03) $1.00 2.51%
1992 $1.00 0.03 (0.03) $1.00 2.51%
1993 $1.00 0.02 (0.02) $1.00 1.98%
1994 $1.00 0.02 (0.02) $1.00 2.31%
1995 $1.00 0.03 (0.03) $1.00 3.47%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1993(e) $1.00 0.01 (0.01) $1.00 0.54%
1994 $1.00 0.04 (0.04) $1.00 3.68%
1995 $1.00 0.05 (0.05) $1.00 5.43%
------------------------------------------------------------------------
</TABLE>
(a)Reflects operations for the period from June 11, 1987 (date of initial
public investment) to December 31, 1987.
(b)Reflects operations for the period from June 10, 1987 (date of initial
public investment) to December 31, 1987.
(c)Reflects operations for the period from October 2, 1989 (date of initial
public investment) to December 31, 1989.
(d)Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
(e)Reflects operations for the period from October 19, 1993 (date of initial
public investment) to December 31, 1993.
(f)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(g)Computed on an annualized basis.
(h)This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(See Notes which are an integral part of the Financial Statements)
36
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
--------------------------------------------------------------
NET EXPENSE NET ASSETS,
INVESTMENT WAIVER/REDUCTION/ END OF PERIOD
EXPENSES INCOME REIMBURSEMENT(H) (000 OMITTED)
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.49%(g) 6.76%(g) -- $303,798
0.45% 7.24% -- $295,414
0.50% 8.75% -- $327,419
0.47% 7.79% -- $313,436
0.50% 5.74% -- $335,751
0.50% 3.38% -- $291,818
0.51% 2.70% 0.02% $337,276
0.51% 3.75% 0.02% $287,805
0.53% 5.44% 0.03% $296,764
0.50%(g) 4.33%(g) -- $ 72,001
0.52% 4.76% -- $ 70,370
0.52% 5.85% -- $ 71,527
0.60% 5.33% -- $ 72,105
0.58% 4.00% 0.02% $ 54,873
0.49% 2.60% 0.14% $ 48,893
0.45% 2.07% 0.20% $ 40,141
0.45% 2.40% 0.19% $ 39,624
0.42% 3.52% 0.20% $ 56,551
0.38%(g) 7.58%(g) 0.05%(g) $ 62,499
0.44% 7.68% -- $149,066
0.44% 5.52% -- $130,302
0.41% 3.34% -- $146,453
0.40% 2.74% 0.01% $231,123
0.42% 3.76% 0.02% $256,538
0.43% 5.40% 0.03% $277,142
0.60%(g) 5.08%(g) -- $ 17,936
0.60% 3.26% -- $ 19,962
0.61% 2.60% 0.02% $ 21,583
0.61% 3.85% 0.02% $ 41,629
0.63% 5.30% 0.03% $ 91,288
0.67%(g) 3.69%(g) 0.02%(g) $ 425
0.59% 2.35% 0.14% $ 2,452
0.55% 1.88% 0.20% $ 20,312
0.55% 2.30% 0.19% $ 37,134
0.52% 3.42% 0.20% $ 55,469
0.50%(g) 2.65%(g) 0.16%(g) $ 948
0.52% 3.66% 0.17% $ 20,390
0.53% 5.28% 0.18% $ 38,973
------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
Financial Highlights
EQUITY FUNDS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
DISTRIBUTIONS TO SHAREHOLDERS DISTRIBUTIONS
NET ASSET NET REALIZED SHAREHOLDERS FROM NET IN EXCESS
VALUE, NET AND UNREALIZED TOTAL FROM FROM NET REALIZED GAIN OF NET
YEAR ENDED BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT INVESTMENT
DECEMBER 31, OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS INCOME(C)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR GROWTH FUND
1989(a) $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) --
1995 $26.30 0.43 7.62 8.05 (0.43) (3.11) --
THE MONITOR INCOME EQUITY FUND
1989(a) $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) -- --
1995 $21.93 0.94 5.34 6.28 (0.96) -- --
INVESTMENT SHARES
THE MONITOR GROWTH FUND
1991(b) $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) --
1995 $26.31 0.35 7.61 7.96 (0.35) (3.11) --
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Reflects operations for the period from July 3, 1989 (date of initial public
investment) to December 31, 1989.
(b)Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
(c) Distributions in excess of net investment income were the result of certain
book and tax timing differences. These distributions do not represent a
return of capital for federal income tax purposes.
(d)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(e)This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(f)Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
38
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
NET ASSET ----------------------------------------
VALUE, NET EXPENSE NET ASSETS, PORTFOLIO
TOTAL END OF TOTAL INVESTMENT WAIVER/REDUCTION/ END OF PERIOD TURNOVER
DISTRIBUTIONS PERIOD RETURN(D) EXPENSES INCOME REIMBURSEMENT(E) (000 OMITTED) RATE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.31) $20.61 4.63% 0.95%(f) 3.24%(f) -- $ 24,245 14%
(0.51) $20.13 0.16% 1.00% 2.58% -- $ 36,253 18%
(0.62) $24.78 26.47% 0.93% 2.33% 0.02% $ 71,451 13%
(0.94) $25.76 7.88% 0.91% 2.25% 0.01% $ 90,096 36%
(0.49) $26.17 3.53% 0.84% 1.79% 0.04% $109,576 29%
(0.47) $26.30 2.28% 0.88% 1.52% 0.04% $103,463 42%
(3.54) $30.81 30.75% 0.86% 1.34% 0.05% $143,421 37%
(0.42) $20.25 3.39% 0.92%(f) 5.13%(f) -- $ 35,215 29%
(0.88) $17.60 (8.86%) 0.94% 4.43% -- $ 45,468 66%
(0.72) $20.90 23.20% 0.93% 3.67% -- $ 79,908 25%
(0.74) $21.70 7.49% 0.85% 3.53% 0.01% $ 95,182 22%
(0.80) $23.21 10.85% 0.82% 3.29% -- $135,618 10%
(0.87) $21.93 (1.82%) 0.84% 3.91% -- $115,399 50%
(0.96) $27.25 29.26% 0.82% 3.85% -- $141,892 17%
(0.41) $24.78 9.20% 1.24%(f) 1.88%(f) 0.02%(f) $ 1,078 13%
(0.87) $25.76 7.57% 1.16% 2.03% 0.01% $ 3,637 36%
(0.43) $26.16 3.25% 1.10% 1.54% 0.04% $ 3,961 29%
(0.40) $26.31 2.08% 1.13% 1.27% 0.04% $ 3,212 42%
(3.46) $30.81 30.40% 1.11% 1.08% 0.05% $ 3,777 37%
- ---------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
Financial Highlights
INCOME FUNDS
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
DISTRIBUTIONS TO SHAREHOLDERS DISTRIBUTIONS
NET ASSET NET REALIZED SHAREHOLDERS FROM NET IN EXCESS
VALUE, NET AND UNREALIZED TOTAL FROM FROM NET REALIZED GAIN OF NET
YEAR ENDED BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT INVESTMENT
DECEMBER 31, OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS INCOME(E)
- ------------------------------------------------------------------------------------------------------------
TRUST SHARES
THE MONITOR OHIO TAX-FREE FUND
<S> <C> <C> <C> <C> <C> <C> <C>
1988(a) $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) -- --
1995 $20.50 1.01 1.27 2.28 (1.01) -- --
THE MONITOR FIXED INCOME
SECURITIES FUND
1989(b) $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) -- --
1995 $19.69 1.34 2.09 3.43 (1.34) -- --
THE MONITOR MORTGAGE SECURITIES
FUND
1992(c)(i) $10.00 0.63 0.29 0.92 (0.61) (0.04) --
1993(i) $10.27 1.50 (0.28) 1.22 (1.46) (0.10) --
1994(i) $ 9.93 0.89 (3.19) (2.30) (0.93) -- (0.01)
1995(i) $ 6.69 0.55 1.46 2.01 (0.55) -- (0.06)
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME
SECURITIES FUND
1989(b) $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) -- --
1995 $19.14 1.18 1.21 2.39 (1.18) -- --
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
1991(d) $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) -- --
1995 $20.50 0.96 1.27 2.23 (0.96) -- --
THE MONITOR FIXED INCOME
SECURITIES FUND
1991(d) $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) -- --
1995 $19.70 1.29 2.09 3.38 (1.30) -- --
THE MONITOR MORTGAGE SECURITIES
FUND
1992(c)(i) $10.00 0.62 0.28 0.90 (0.60) (0.03) --
1993(i) $10.27 1.47 (0.27) 1.20 (1.43) (0.10) --
1994(i) $ 9.94 0.87 (3.19) (2.32) (0.91) -- (0.01)
1995(i) $ 6.70 0.55 1.46 2.01 (0.55) -- (0.04)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Reflects operations for the period from October 18, 1988 (date of initial
public investment) to December 31, 1988.
(b)Reflects operations for the period from July 3, 1989 (date of initial
public investment) to December 31, 1989.
(c)Reflects operations for the period from June 2, 1992 (date of initial
public investment) to December 31, 1992.
(d)Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
(e) Distributions in excess of net investment income were the result of
certain book and tax timing differences. These distributions did not
represent a return of capital for federal income tax purposes.
(f)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(g)This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(h)Computed on an annualized basis.
(i) Per share information presented is based upon the monthly average 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)
40
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
----------------------------------------
NET ASSET NET ASSETS,
VALUE, NET EXPENSE WAIVER/ END OF PORTFOLIO
TOTAL END OF TOTAL INVESTMENT REDUCTION/ PERIOD (000 TURNOVER
DISTRIBUTIONS PERIOD RETURN(F) EXPENSES INCOME REIMBURSEMENT(G) OMITTED) RATE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.22) $19.95 0.59% 0.88%(h) 5.42%(h) -- $ 15,724 76%
(1.15) $20.23 7.37% 0.87% 5.88% -- $ 28,040 86%
(1.15) $20.31 6.28% 0.91% 5.59% -- $ 29,886 5%
(1.05) $21.05 9.06% 0.90% 5.13% -- $ 38,112 13%
(0.98) $21.31 6.04% 0.91% 4.62% -- $ 47,557 3%
(0.96) $22.04 8.08% 0.82% 4.39% 0.04% $ 59,541 2%
(0.98) $20.50 (2.57%) 0.77% 4.68% 0.04% $ 56,469 12%
(1.01) $21.77 11.35% 0.78% 4.74% 0.08% $ 59,869 13%
(0.60) $20.02 3.14% 0.88%(h) 7.14%(h) -- $ 26,502 19%
(1.48) $19.95 7.49% 0.82% 7.56% -- $ 38,131 7%
(1.45) $21.58 16.13% 0.90% 7.12% -- $ 54,525 21%
(1.61) $21.32 6.54% 0.83% 6.49% -- $ 87,107 15%
(1.45) $22.03 10.32% 0.74% 5.87% 0.04% $112,103 7%
(1.34) $19.69 (4.62%) 0.75% 6.26% 0.04% $119,117 23%
(1.34) $21.78 17.95% 0.77% 6.41% 0.05% $141,423 20%
(0.65) $10.27 9.12% 0.58%(h) 10.60%(h) 0.19%(h) $ 90,677 50%
(1.56) $ 9.93 12.10% 0.78% 14.20% 0.04% $ 90,461 154%
(0.94) $ 6.69 (24.59%) 0.88% 11.16% 0.12% $ 54,164 91%
(0.61) $ 8.09 31.10% 0.49% 7.29% 0.63% $ 52,667 194%
(0.66) $20.11 3.91% 0.76%(h) 7.54%(h) -- $ 84,702 24%
(1.54) $20.17 8.34% 0.74% 7.59% -- $104,218 20%
(1.65) $21.15 13.62% 0.78% 7.23% -- $101,519 50%
(1.79) $20.63 6.25% 0.74% 6.44% -- $123,400 41%
(1.56) $20.57 7.43% 0.71% 5.70% -- $123,897 24%
(1.23) $19.14 (0.98%) 0.72% 5.76% -- $125,112 38%
(1.18) $20.35 12.81% 0.74% 5.93% -- $133,951 40%
(0.69) $21.05 5.78% 1.18%(h) 4.74%(h) -- $ 486 13%
(0.93) $21.31 5.76% 1.16% 4.36% -- $ 1,339 3%
(0.90) $22.04 7.78% 1.07% 4.13% 0.04% $ 2,838 2%
(0.92) $20.50 (2.83%) 1.02% 4.43% 0.04% $ 2,307 12%
(0.96) $21.77 11.10% 1.03% 4.49% 0.08% $ 2,163 13%
(0.97) $21.58 12.12% 1.19%(h) 6.68%(h) -- $ 135 21%
(1.55) $21.32 6.25% 1.08% 6.16% -- $ 845 15%
(1.39) $22.04 10.07% 0.99% 5.61% 0.04% $ 2,563 7%
(1.28) $19.70 (4.88%) 1.00% 6.01% 0.04% $ 1,958 23%
(1.30) $21.78 17.63% 1.02% 6.17% 0.05% $ 2,176 20%
(0.63) $10.27 8.97% 0.83%(h) 10.35%(h) 0.44%(h) $ 4,742 50%
(1.53) $ 9.94 11.94% 1.03% 13.95% 0.29% $ 8,533 154%
(0.92) $ 6.70 (24.72%) 1.13% 10.91% 0.37% $ 4,259 91%
(0.59) $ 8.12 31.13% 0.76% 7.40% 0.73% $ 2,008 194%
- -----------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
Combined Notes to Financial Statements
DECEMBER 31, 1995
(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
(individually referred to as the "Fund", or collectively as the "Funds"). The
following Funds comprise the Trust:
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 Money Market") 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
Money Market, Ohio Municipal Money Market, U.S. Treasury Money Market, Growth,
Ohio Tax-Free, Fixed Income, and Mortgage Securities 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 (the "Plans") adopted in accordance with
Rule 12b-1 under the Act. The objectives of the Funds can be found in the
current prospectus.
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 its financial statements. These
policies are in conformity with generally accepted accounting principles. The
preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the Financial Statements.
The actual results could differ from those estimates.
A. INVESTMENT VALUATIONS
The Board of Trustees (the "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 Money Market) 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 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) 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 that takes into consideration yield, stability, risk, credit 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 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
under repurchase agreement transactions. Additionally, procedures have been
established by the Trust to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral at
least equals the repurchase price to be paid under the repurchase agreement
transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' adviser to be
creditworthy pursuant to the guidelines and/or standards reviewed or
established by the Trustees. Risks may arise from the potential inability of
counterparties to honor the
42
<PAGE>
terms of these agreements. 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,
Mortgage Securities uses the constant yield method for income recognition
purposes.
The amount shown in the financial statements of Mortgage Securities for net
investment income for the year ended December 31, 1995, differed from those
determined for tax purposes because of certain book and tax timing differences.
This resulted in distributions to shareholders in excess of net investment
income for book purposes. These distributions did not represent a return of
capital for federal income tax purposes for the year ended December 31, 1995.
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. As of December 31, 1995, $147,819 has been reclassified in the
Mortgage Securities Fund from distributions in excess of net investment income
to accumulated net realized loss. Net investment income, net realized loss, and
net assets were not affected by this change.
D. FEDERAL TAXES
It is the Funds' policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provisions for federal tax
are necessary.
At December 31, 1995, Ohio Tax Free, Income Equity, Fixed Income, Mortgage
Securities, and Short/Intermediate Fixed Income, for federal tax purposes, had
capital loss carryforwards, 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
carryforwards will expire as listed below:
<TABLE>
<CAPTION>
1994 1995
CARRYFORWARDS CARRYFORWARDS
TO EXPIRE IN TO EXPIRE IN
2002 2003
- ------------------------------------------------------------
<S> <C> <C>
Ohio Tax-Free $ -- $ 9,784
Fixed Income 1,801,318 420,034
Mortgage Securities 10,747,726 10,945,577
Short/Intermediate Fixed Income 200,081 256,995
- ------------------------------------------------------------
</TABLE>
Additionally, net capital losses of $210,092 attributable to security
transactions of the Mortgage Securities incurred after October 31, 1995, were
treated as arising on January 1, 1996, the first day of the Fund's taxable
year.
E. DEFERRED EXPENSES
The costs incurred by Mortgage Securities 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 over a period of five years from the 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
Mortgage Securities enters into dollar roll transactions, with respect to
mortgage securities issued by GNMA, FNMA and FHLMC, in which the Fund sells
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 from the transactions 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 Mortgage Securities 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, 1995.
43
<PAGE>
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust 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 or more classes of shares. Transactions in
Fund shares were as follows:
<TABLE>
<CAPTION>
OHIO MUNICIPAL U.S. TREASURY
(ALL NUMBERS IN THOUSANDS) MONEY MARKET MONEY MARKET MONEY MARKET
- ------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1995 1994 1995 1994 1995 1994
-------- -------- -------- -------- -------- --------
TRUST SHARES (AT $1.00 PER
SHARE):
<S> <C> <C> <C> <C> <C> <C>
Shares sold 570,950 593,566 113,680 70,571 837,829 535,341
Shares issued to 33 23 2 5 21 16
shareholders in payment
of distributions
declared
Shares redeemed (562,024) (643,060) (96,755) (71,095) (817,246) (509,942)
- ------------------------------------------------------------------------------------------
Net change resulting 8,959 (49,471) 16,927 (519) 20,604 25,415
from Trust share
transactions
- ------------------------------------------------------------------------------------------
INVESTMENT SHARES (AT
$1.00 PER SHARE):
Shares sold 197,369 62,107 91,978 89,672 70,271 34,167
Shares issued to 2,711 927 389 192 1,023 215
shareholders in payment
of distributions
declared
Shares redeemed (150,421) (42,989) (74,032) (73,040) (52,711) (14,940)
- ------------------------------------------------------------------------------------------
Net change resulting 49,659 20,045 18,335 16,824 18,583 19,442
from Investment Share
transactions
- ------------------------------------------------------------------------------------------
Net change resulting 58,618 (29,426) 35,262 16,305 39,187 44,857
from Fund share
transactions
- ------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED DECEMBER 31, 1995: OHIO
(ALL NUMBERS IN THOUSANDS) GROWTH INCOME EQUITY TAX-FREE
- ------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- -------- -------- -------- -------- --------
TRUST SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 843 $25,209 477 $11,621 470 $10,044
Shares issued to 316 9,679 68 1,669 6 122
shareholders in payment
of distributions
declared
Shares redeemed (438) (13,402) (601) (14,587) (481) (10,285)
- ------------------------------------------------------------------------------------------
Net change resulting 721 21,486 (56) (1,297) (5) (119)
from Trust Share
transactions
- ------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 12 365 N/A N/A 10 219
Shares issued to 13 379 N/A N/A 4 82
shareholders in payment
of distributions
declared
Shares redeemed (24) (714) N/A N/A (27) (583)
- ------------------------------------------------------------------------------------------
Net change resulting 1 30 N/A N/A (13) (282)
from Investment Share
transactions
- ------------------------------------------------------------------------------------------
Net change resulting 722 $21,516 (56) ($1,297) (18) ($401)
from Fund share
transactions
- ------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1994: OHIO
(ALL NUMBERS IN THOUSANDS) GROWTH INCOME EQUITY TAX-FREE
- ----------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------- ------ -------- ------ -------
TRUST SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 718 $18,767 610 $13,781 830 $17,539
Shares issued to 21 542 70 1,580 6 127
shareholders in payment of
distributions declared
Shares redeemed (993) (25,809) (1,262) (28,184) (783) (16,544)
- ----------------------------------------------------------------------------------
Net change resulting from (254) (6,500) (582) (12,823) 53 1,122
Trust share transactions
- ----------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 15 404 N/A N/A 20 432
Shares issued to 2 50 N/A N/A 4 89
shareholders in payment of
distributions declared
Shares redeemed (47) (1,219) N/A N/A (40) (852)
- ----------------------------------------------------------------------------------
Net change resulting from (30) (765) N/A N/A (16) (331)
Investment share
transactions
- ----------------------------------------------------------------------------------
Net change resulting from
Fund share transactions (284) ($7,265) (582) ($12,823) 37 $791
- ----------------------------------------------------------------------------------
<CAPTION>
SHORT/
YEAR ENDED DECEMBER 31, 1995: MORTGAGE INTERMEDIATE
(ALL NUMBERS IN THOUSANDS) FIXED INCOME SECURITIES FIXED INCOME
- ----------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------- ------ -------- ------ -------
TRUST SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,011 $21,053 137 $1,008 1,057 $20,923
Shares issued to 159 3,324 59 428 166 3,294
shareholders in payment of
distributions declared
Shares redeemed (726) (15,230) (1,786) (13,532) (1,176) (23,381)
- ----------------------------------------------------------------------------------
Net change resulting from 444 9,147 (1,590) (12,096) 47 836
Trust share transactions
- ----------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 13 283 11 78 N/A N/A
Shares issued to 5 102 17 124 N/A N/A
shareholders in payment of
distributions declared
Shares redeemed (17) (368) (416) (2,855) N/A N/A
- ----------------------------------------------------------------------------------
Net change resulting from 1 17 (388) (2,653) N/A N/A
Investment share
transactions
- ----------------------------------------------------------------------------------
Net change resulting from
Fund share transactions 445 $9,164 (1,978) ($14,749) 47 $836
- ----------------------------------------------------------------------------------
<CAPTION>
SHORT/
YEAR ENDED DECEMBER 31, 1994: MORTGAGE INTERMEDIATE
(ALL NUMBERS IN THOUSANDS) FIXED INCOME SECURITIES FIXED INCOME
- ----------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------- ------ -------- ------ -------
TRUST SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,500 $30,808 799 $7,548 1,732 $34,446
Shares issued to 148 3,029 378 3,153 164 3,221
shareholders in payment of
distributions declared
Shares redeemed (685) (14,067) (2,188) (16,910) (1,383) (27,327)
- ----------------------------------------------------------------------------------
Net change resulting from 963 19,770 (1,011) (6,209) 513 10,340
Trust share transactions
- ----------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 27 578 79 740 N/A N/A
Shares issued to 6 114 67 529 N/A N/A
shareholders in payment of
distributions declared
Shares redeemed (50) (1,029) (368) (2,906) N/A N/A
- ----------------------------------------------------------------------------------
Net change resulting from (17) (337) (222) (1,637) N/A N/A
Investment share
transactions
- ----------------------------------------------------------------------------------
Net change resulting from
Fund share transactions 946 $19,433 (1,233) ($7,846) 513 $10,340
- ----------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--The Huntington Trust Company, N.A., the Funds'
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 Money Market: 0.20% of the Fund's average
daily net assets. The Adviser may voluntarily choose to waive a portion of its
fee. The Adviser can modify or terminate this voluntary waiver 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. The Sub-adviser receives from the
Adviser an annual fee equal to 0.15% of the Fund's average daily net assets.
ADMINISTRATION FEE--During 1995, Federated Administrative Services ("FAS")
provided the Funds with certain administrative personnel and services. For
these services, Income Equity and Short/Intermediate Fixed Income paid a fee to
FAS at a blended annual rate, based on average daily net assets of the Trust
taken as a whole, 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
0.075% on assets in excess of $750 million
- -------------------------------------------------------
</TABLE>
For administrative personnel and services, Growth, Ohio Tax-Free, Fixed Income,
Mortgage Securities, Money Market, Ohio Municipal Money Market and U.S.
Treasury Money Market paid a fee to FAS at a blended annual rate, based on
average daily net assets of the Trust taken as a whole, 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
0.110% on assets in excess of $1.25 billion
- --------------------------------------------------------
</TABLE>
FAS voluntarily waived a portion of its fee during 1995.
Effective January 11, 1996, SEI Financial Management Corporation ("SFM") serves
as administrator to each Fund under an Administration Agreement. SFM is
entitled to receive an annual fee of .11% of each Fund's average net assets,
paid monthly, for services performed under the Administration Agreement.
Effective January 11, 1996, SEI Financial Services Company acts as the Fund's
Distributor pursuant to a distribution agreement.
DISTRIBUTION PLAN--Each Fund offering Investment Shares has adopted a
distribution plan (the "Plan") pursuant to Rule 12b-1 under the Act. Growth,
Ohio Tax-Free, Fixed Income, Money Market, and Ohio Municipal Money Market
reimbursed Federated Securities Corp. ("FSC"), the Funds' 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. Mortgage Securities and U.S.
Treasury Money Market, have adopted a separate Plan, which provided that
Mortgage Securities and U.S. Treasury Money Market paid 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 Mortgage
Securities, 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. Money Market, Ohio Municipal Money Market, and U.S.
Treasury Money Market incurred fees of 0.10%.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES, PORTFOLIO ACCOUNTING
AND CUSTODIAN FEES--During 1995, Federated Services Company ("FServ") served as
transfer and dividend disbursing agent for the Funds for which it received a
fee. The fee was based on the size, type and number of accounts and
transactions made by shareholders. Effective January 11, 1996, SEI Financial
Management Corporation serves as the transfer and dividend disbursing agent for
the Funds.
The Huntington Trust Company ("Huntington") provides certain accounting and
recordkeeping services with respect to the Funds' portfolios of investments,
with the exception of Mortgage Securities, 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 Funds' investments and other assets for
which it receives a fee. The fee is based on the level of each Fund's average
daily net assets.
ORGANIZATIONAL EXPENSES--Mortgage Securities' organizational expenses ($47,922)
were initially borne by FAS. The Fund has agreed to reimburse 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 year
ended December 31, 1995, Mortgage Securities reimbursed FAS $8,786.
During 1995, certain Officers of the Trust were Officers and Directors/
Trustees of FAS, FSC and FServ.
46
<PAGE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
year ended December 31, 1995, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SECURITIES
---------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $52,787,850 $16,476,646 $7,772,374
Sales $45,379,151 $23,188,559 $9,427,251
- -----------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $21,010,189 $ -- $11,561,345
Sales $10,312,649 $ -- $16,428,480
- -----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
---------------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- ------------------------------------------------
<S> <C> <C> <C>
Purchases -- $4,010,000 --
Sales -- $8,889,688 --
- ------------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- ------------------------------------------------
<S> <C> <C> <C>
Purchases $14,044,609 $137,809,510 $39,237,656
Sales $15,902,800 $159,484,568 $36,577,773
- ------------------------------------------------
</TABLE>
(6) INVESTMENT CONCENTRATION
Ohio Tax-Free and Ohio Municipal Money Market 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 Ohio Tax-Free, or A-2, P-2 for Ohio Municipal Money Market 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
Ohio Municipal Money Market and Ohio Tax-Free's portfolios and the interest
income to the two Funds could be adversely affected.
47
<PAGE>
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, 1995, 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 audit 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, 1995 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, 1996
48
<PAGE>
Trustees
David S. Schoedinger
John M. Shary
William R. Wise
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.
49
<PAGE>
SEI Financial Services Company
Distributor
609409107 609409602 609409826
609409875 609409842 609409776
609409305 609409701 609409784
609409867 609409404 609409883
609409503 609409834 1400022 (2/96)
609409768 609409800
