<PAGE>
(Art)
The Monitor Funds
Semi-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
June 30, 1996
(ART)
<PAGE>
Message from the Investment Manager
Dear Shareholder:
I am pleased to present the Semi-Annual Report for The Monitor Funds. This
report covers the six month period ended June 30, 1996. It begins with a
discussion featuring the Funds' managers outlining recent activity in the
Funds' portfolios along with market performance information. We have presented
this information into a "question and answer" format for your convenience.
Included next are complete listings of the portfolio holdings of the Funds,
followed by the comprehensive financial statements and financial highlights.
After moving in tandem for most of the past five years, stock prices diverged
from bond prices this year. The Dow Jones Industrial Average rose from 5117 at
the end of 1995 to 5654 at the end of June, 1996. Meanwhile, the yield on the
30 year Treasury bond rose from 5.90% to 6.90% in the same time frame. As a
result, inflation worries have re-emerged, with labor cost increases being the
latest surprise from recently released economic statistics. This chain of
events raises a fundamental question: is the economy accelerating or
decelerating? There is no doubt that "Fed-watching" will be a favorite past
time in the next several months and we may become more familiar with increased
volatility in both the stock and bond markets.
As always, we appreciate your confidence in The Monitor Funds. Please consider
adding to your fund investment by reinvesting your dividends, or make
additional share purchases through our Systematic Investment Plan ("SIPS").
The "SIPS" plan allows your Monitor Fund investment to be automatically
deducted from your Huntington checking account--so that you don't have to
remember to write a check, or place a telephone call. The Monitor Funds
Systematic Investment Plan is just another way that you can continue to build
an investment plan to suit your personal goals and needs--with a program which
is convenient and fits your schedule.
On behalf of The Monitor Funds and The Huntington Trust Company, I thank you
for your investment.
(ART)
Norman A. Jacobs
President and C.E.O.
The Huntington Trust Company, N.A.
Investment Manager
August 15, 1996
1
<PAGE>
Investment Review
The investment review questions were answered by a panel consisting of the
following Portfolio Managers:
<TABLE>
<S> <C>
James M. Buskirk (Chief
Investment Officer, The
Huntington Trust
Company, N.A.)......... The Monitor Income Equity Fund
Philip H. Farrington,
James Gibboney, Jr. and
Thomas J. Sauer........ The Monitor Growth Fund
Stephen M. Geis......... The Monitor Fixed Income Securities Fund
The Monitor Short/Intermediate Fixed Income Securities Fund
William G. Doughty...... The Monitor Ohio Tax Free Fund
The Monitor Money Market Fund
The Monitor U.S. Treasury Money Market Fund
The Monitor Ohio Municipal Money Market Fund
Worth Bruntjen (Senior
Vice President,
Piper Capital
Management, Sub-
Advisor)............... The Monitor Mortgage Securities Fund
</TABLE>
Money Market Funds: The Monitor Money Market Fund, The Monitor U.S. Treasury
Money Market Fund, The Monitor Ohio Municipal Money Market Fund
Q Can you comment on the interest rate environment during the first half of the
year, and how the Monitor Money Market Funds performed in this environment?
A Three month Treasury bills, a good proxy for the short term markets, started
and ended the first half of 1996 at about 5.10%. Between those times, however,
rates fluctuated between 4.90% and 5.30%. The Monitor Money Market Funds, with
their short term maturities, performed as they should have with their yields
mirroring the variability and fluctuations in short term rates.
Q What was the average weighted maturity of the securities in each fund at the
end of the period?
A The average weighted maturity of the securities in each of the Money Market
Funds, at the end of the second quarter was as follows:
<TABLE>
<S> <C>
The Monitor Money Market Fund 32 days
The Monitor U.S. Treasury Money Market Fund 45 days
The Monitor Ohio Municipal Money Market Fund 54 days
</TABLE>
Q What is your outlook on interest activity in the near future?
A Stocks and other longer term investments have experienced a great deal of
volatility recently. This may translate into greater short term interest
fluctuations in the next few months.
Equity Funds
The Monitor Growth Fund
- -----------------------
Q What is your read on the stock market's performance during the early portion
of 1996 and how did The Monitor Growth Fund perform during this period?
A Stock prices have been buoyed by the continuing flow of money into equity
mutual funds. The pace and size of these flows reached epic proportions. Stock
prices, however, face a headwind in the form of higher interest rates. The
Fund performed reasonably well during this period, considering a significant
underweighting in the technology sector versus its peers and the S&P 500.
2
<PAGE>
Q Please identify a few of the Fund's top holdings at the end of the period,
along with a brief commentary on each.
A Automatic Data Processing (ADP) is the largest payroll and tax filing
processor in the United States, filing approximately 11 million payroll tax
returns per year. Earnings have grown 14% per year the last five years, and
are estimated to grow 16% in the future. Electronic Data Systems (EDS) was
recently spun off from General Motors. EDS provides corporate outsourcing,
data center management, networking and business consulting for a wide range of
industries and government. The likely inclusion of this company in the S&P 500
could provide a sharp upside move in the stock, as index funds rush to
purchase shares. Walgreen is the largest retail drug chain in the United
States. The company is currently undergoing a major remodeling effort of its
store base, moving away from strip mall locations and into larger, more
attractive free standing units with drive-thru pharmacies. While actively
signing up new health care plans, Walgreen's refuses to operate as a loss
leader. Its earnings are a model of consistency, growing at 13% historically
and 14% prospectively.
The Monitor Income Equity Fund
- ------------------------------
Q How did The Monitor Income Equity Fund perform during the first two quarters
of 1996?
A The Fund posted a total return of 7.3%* in the year's first half, in line
with its high-yield peer group, with its relative performance improving in the
second quarter after the stock market hit an interim peak. Equally important,
the Fund continued to earn and pay out income at a rate of 7.7 cents per
month, making it one of the highest yielding funds in its peer group.
Q What are your strategies for the third and fourth quarters of 1996?
A As of June 30, no change in strategy was contemplated. We will continue to
look for ways to maintain and increase the Fund's dividend stream. If capital
gains can be minimized, we may sell some of the Fund's lower yielding stocks
and replace them with higher yielding issues, while maintaining an overall
diversified portfolio that offers investors exposure to all major industry
sectors.
Income Funds: Monitor Fixed Income Securities Fund, Monitor Short/Intermediate
Fixed Income Securities Fund, Monitor Ohio Tax-Free Fund
Q How did the Funds perform during the first half of 1996?
A The Monitor Fixed Income Securities Fund's total return was in line with its
benchmark indices and peer group averages, -2.04% (trust shares), -4.07%
(investment shares with load) versus -1.88% for the Lehman
Government/Corporate Bond Index and -1.40% for the Lipper Intermediate
Investment Grade Debt Fund Average. The total rate of return of the Fund was
negative due to the rapidly rising interest rates. The Monitor
Short/Intermediate Fixed Income Securities Fund** and the Monitor Ohio Tax-
Free Fund*** performed with their benchmark indices and peer group averages,
as well. Because of their short average maturity, these Funds had a modest
positive total rate of return despite the rapidly rising interest rates.
- --------
* Performance quoted represents past performance. Investment return and
principal value will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
** The Monitor Short/Intermediate Fixed Income Securities Fund: 0.37%
Lehman Intermediate Government/Corporate Index: -0.21%
Merrill Lynch 1-5 Year Composite Treasury Index: 0.67%
Merrill Lynch 1-5 Year Government/Corporate Index: 0.73%
Lipper Short Term Investment Grade Debt Fund Average: 1.18%
***The Monitor Ohio Tax-Free Fund: 0.16% trust shares; -1.93% investment
shares with load
Lehman State General Obligation Index: -0.12%
Lehman 5 Year General Obligation Index: 0.75%
Lipper Short Municipal Debt Fund Average: 1.21%
Lipper Intermediate Municipal Debt Fund Average: -0.26%
(Figures quoted are for period ended 6/30/96)
3
<PAGE>
Q What is your strategy going forward for the balance of the year?
A At June 30, 1996 the interest rate environment was unsettled, and no new
significant cash inflows were expected, we will likely maintain the present
maturity, credit quality and asset allocation of The Monitor Fixed Income
Securities Fund and The Monitor Ohio Tax-Free Fund. In the portfolio of the
Monitor Short/Intermediate Fixed Income Fund, we plan to lengthen the average
maturity to a little past three years. This will be effected by selling and
consolidating all of the Treasury positions into a five year Treasury and
swapping short corporate bonds for the five year Treasury.
The Monitor Mortgage Securities Fund
- ------------------------------------
Q How did the Fund perform during the first half of 1996 and what changes were
made in the portfolio during this period?
A Total return of the Monitor Mortgage Securities trust shares for the six
months ending June 30, 1996, was 1.06%. This compares against the total return
of the Lehman Mortgage Index of 0.35% and the median Mortgage Securities Fund
for the same period of -0.80% as measured by Lipper Analytical Services.
Selected sales were made of inverse interest-only and inverse floater
securities during the first half of 1996, with proceeds reinvested into fixed
coupon, Agency guaranteed pass-throughs. Purchases emphasized a combination of
discount coupons of 7% or lower and premium coupons of 8 1/2% and higher. The
sales contributed to the Fund's reduced net asset value volatility during a
very volatile period in the bond market.
Q What is your strategy going forward for the balance of the year?
A As the first half of 1996 ends, we anticipate further reduction in holdings of
inverse floaters and reinvestment into fixed rate pass-through securities
offering an attractive combination of favorable yield premium against the
Treasury market and moderate volatility. As the second half of 1996 unfolds,
the portfolio has an effective duration close to that of the Lehman Mortgage
Index reflecting the management team's neutral posture against the Index. We
are anticipating a moderating rate of economic growth which should benefit the
fixed income market and, in particular, the mortgage securities market, which
continues to offer attractive value. We will view market weakness as an
opportunity to add to selected holdings at attractive prices when possible.
4
<PAGE>
Portfolios of Investments
------------------------------------
THE MONITOR MONEY MARKET FUND June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------
<C> <S> <C>
(A) COMMERCIAL PAPER - 89.8%
- -------------------------------------------
AGRICULTURE - 3.3%
$15,000,000 Cargill Inc.,
5.25%-5.36%,
07/31/1996-
09/23/1996 $14,882,738
- -------------------------------------------
AUTOMOTIVE - 2.2%
10,000,000 Daimler Benz
North America,
5.27%-5.38%,
07/02/1996-
09/19/1996 9,939,490
- -------------------------------------------
BANKING - 6.7%
10,000,000 National City
Credit Corp.,
5.26%-5.39%,
07/01/1996-
09/24/1996 9,936,368
10,000,000 Norwest Corp.,
5.26%,
08/05/1996 10,000,000
10,000,000 Toronto Dominion
Holdings,
5.23%-5.25%,
07/22/1996-
08/21/1996 9,947,642
- -------------------------------------------
29,884,010
- -------------------------------------------
BANKING & FINANCE - 5.6%
10,000,000 American Express
Credit Corp.,
5.35%,
07/11/1996 10,000,000
5,000,000 C.I.T. Group
Holdings,
5.29%,
08/30/1996 4,955,917
10,000,000 Ford Motor
Credit Corp.,
5.41%,
07/10/1996 10,000,000
- -------------------------------------------
24,955,917
- -------------------------------------------
BASIC INDUSTRY - 1.1%
5,000,000 Hanson Finance
(U.K.) PLC,
5.38%,
07/08/1996 4,994,769
- -------------------------------------------
BUSINESS EQUIPMENT & SERVICES - 3.3%
5,000,000 Pitney Bowes
Credit Corp.,
5.28%,
08/05/1996 4,974,333
10,000,000 Xerox Corp.,
5.27%-5.28%,
07/12/1996-
08/02/1996 9,968,511
- -------------------------------------------
14,942,844
- -------------------------------------------
CHEMICALS - 5.5%
15,000,000 Akzo Nobel Inc.,
5.27%-5.38%,
07/08/1996-
09/16/1996 14,908,632
10,000,000 du Pont (E.I.)
de Nemours,
5.26%-5.32%,
07/17/1996-
08/29/1996 9,944,717
- -------------------------------------------
24,853,349
- -------------------------------------------
COMMUNICATIONS - 3.5%
10,000,000 AT&T Corp.,
5.24%-5.26%,
07/15/1996-
08/19/1996 9,954,111
5,657,000 Southwestern
Bell Telephone,
5.37%,
07/10/1996 5,649,405
- -------------------------------------------
15,603,516
- -------------------------------------------
ELECTRONICS - 2.2%
10,000,000 Sharp
Electronics
Corp., 5.26%-
5.38%,
09/06/1996-
09/27/1996 9,885,647
- -------------------------------------------
ENTERTAINMENT - 3.3%
15,000,000 Walt Disney Co.,
5.21%-5.35%,
07/08/1996-
09/12/1996 14,912,200
- -------------------------------------------
ENVIRONMENTAL CONTROL - 1.1%
5,000,000 WMX Technology
Inc., 5.40%,
09/17/1996 4,941,500
- -------------------------------------------
FINANCE-COMMERCIAL - 5.5%
15,000,000 IBM Credit
Corp., 5.33%-
5.36%,
07/08/1996-
09/09/1996 14,937,758
5,000,000 Sony Capital
Corp., 5.39%,
07/26/1996 4,981,285
5,000,000 Unilever Credit
Corp., 5.26%,
07/23/1996 4,983,928
- -------------------------------------------
24,902,971
- -------------------------------------------
FINANCIAL - 7.8%
20,000,000 Goldman Sachs
Co., 5.28%-
5.45%,
07/03/1996-
09/04/1996 19,941,521
5,000,000 Merrill Lynch
Co., 5.42%,
10/01/1996 4,930,744
10,000,000 Morgan Stanley
Group, 5.36%,
07/15/1996 9,979,156
- -------------------------------------------
34,851,421
- -------------------------------------------
FOOD & BEVERAGE - 2.2%
10,000,000 Coca Cola Inc.,
5.24%-5.26%,
07/19/1996-
07/26/1996 9,968,656
- -------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------
<C> <S> <C>
FOOD PRODUCTS - 2.2%
$10,000,000 Nestle Capital
Corp., 5.19%-
5.21%,
07/01/1996-
08/27/1996 $9,958,754
- -----------------------------------------------
FUNDING CORP - 2.2%
10,000,000 Corporate Asset
Funding Inc.,
5.25%-5.38%,
08/23/1996-
09/17/1996 9,903,125
- -----------------------------------------------
HOUSEHOLD PRODUCTS/WARES - 2.2%
10,000,000 Proctor & Gamble
Corp., 5.37%,
09/25/1996 9,871,717
- -----------------------------------------------
INSURANCE - 4.4%
10,000,000 Met Life Funding
Corp., 5.25%-
5.27%,
07/03/1996-
07/18/1996 9,986,099
10,000,000 USAA Capital
Corp., 5.31%-
5.37%,
09/05/1996-
09/23/1996 9,888,675
- -----------------------------------------------
19,874,774
- -----------------------------------------------
MISC-MANUFACTURING - 1.8%
8,000,000 Siemens Corp.,
5.37%,
08/21/1996 7,939,140
- -----------------------------------------------
OIL & OIL FINANCE - 2.2%
10,000,000 Atlantic
Richfield Co.,
5.23%-5.25%,
07/31/1996-
08/14/1996 9,946,125
- -----------------------------------------------
PHARMACEUTICALS & HEALTH CARE - 4.9%
5,000,000 Eli Lilly Co.,
5.27%,
08/20/1996 4,963,403
12,000,000 Schering Corp.,
5.25%-5.37%,
08/13/1996-
09/17/1996 11,887,200
5,000,000 Smithkline
Beecham Corp.,
5.25%,
07/16/1996 4,989,063
- -----------------------------------------------
21,839,666
- -----------------------------------------------
PRINTING & PUBLISHING - 3.3%
15,000,000 McGraw Hill
Inc., 5.22%-
5.30%,
07/02/1996-
08/06/1996 14,961,939
- -----------------------------------------------
RETAIL - 3.3%
15,000,000 Wal-Mart Stores
Inc., 5.25%-
5.28%,
07/01/1996-
09/10/1996 14,947,933
- -----------------------------------------------
SOVEREIGN GOVERNMENT - 3.3%
10,000,000 Canadian Wheat
Board, 5.22%,
07/03/1996 9,997,100
5,000,000 Wool
International,
5.23%,
08/20/1996 4,963,681
- -----------------------------------------------
14,960,781
- -----------------------------------------------
TOBACCO - 5.6%
15,000,000 B.A.T. Capital
Corp., 5.30%-
5.35%,
07/02/1996-
08/22/1996 14,979,951
10,000,000 Philip Morris
Co., 5.23%-
5.23%,
07/30/1996-
07/30/1996 9,940,946
- -----------------------------------------------
24,920,897
- -----------------------------------------------
UTILITIES-ELECTRIC - 1.1%
5,000,000 Southern
California
Edison Co.,
5.27%,
08/26/1996 4,959,011
- -----------------------------------------------
TOTAL COMMERCIAL PAPER (AT
AMORTIZED COST) 403,602,890
- -----------------------------------------------
GOVERNMENT AGENCIES - 1.1%
5,000,000 Student Loan
Marketing
Association
Weekly Floating
Rate Note 5,000,000
- -----------------------------------------------
(B) REPURCHASE AGREEMENTS - 9.5%
- -----------------------------------------------
42,525,600 Morgan Stanley &
Co., 5.40%,
dated 06/28/96,
due 7/1/96 42,525,600
- -----------------------------------------------
TOTAL INVESTMENTS (AT AMOR-
TIZED COST) $451,128,490(C)
- -----------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
5
<PAGE>
Portfolio of Investments
----------------
June 30, 1996
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (unaudited)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
OHIO - 96.7%
$475,000 Berea City, OH, BANs, 3.85%, 10/24/1996 $475,305
- -------------------------------------------------------------------------------
1,000,000 Bowling Green, OH, BANs, 4.30%, 09/12/1996 1,000,716
- -------------------------------------------------------------------------------
625,000 Butler County, OH, BANs, 4.30%, 08/30/1996 625,539
- -------------------------------------------------------------------------------
2,000,000 Centerville, OH, Weekly VRDNs, (Bethany
Village)/(PNC Bank OH LOC) 2,000,000
- -------------------------------------------------------------------------------
1,000,000 Cincinnati, OH, City School District, (Series
B),(Fifth Third Bank LOC), 6.00%, 07/11/1996 1,001,310
- -------------------------------------------------------------------------------
1,300,000 Cincinnati, OH, Student Loan Funding Corp., Weekly
VRDNs (Series 1983A)/(Fuji Bank Ltd. LOC) 1,300,000
- -------------------------------------------------------------------------------
3,372,000 Cleremont County, OH, Hospital Facilities, Daily
VRDNs (Mercy Health Care System)/(MBIA Insured) 3,372,000
- -------------------------------------------------------------------------------
5,200,000 Columbus City, OH, Weekly VRDNs (WestDeutsche
Landesbank LOC) 5,200,000
- -------------------------------------------------------------------------------
5,000,000 Columbus, OH, Electric System Revenue,Weekly VRDNs,
(Union Bank of Switzerland LOC) 5,000,000
- -------------------------------------------------------------------------------
6,200,000 Columbus, OH, Sewer System Revenue Bonds, Weekly
VRDNs, (Series 1994) 6,200,000
- -------------------------------------------------------------------------------
805,000 Cuyahoga County, OH, (Cleveland Neighborhood),
4.00%, 12/01/1996 805,000
- -------------------------------------------------------------------------------
2,000,000 Cuyahoga County, OH, Hospital Cleveland Clinic,
Weekly VRDNs (Series 96A)/(Morgan Guaranty LOC) 2,000,000
- -------------------------------------------------------------------------------
1,400,000 Cuyahoga County, OH, IDR Weekly VRDNs (Allen Group
Inc.)/(Dresdner Bank AG, NY LOC) 1,400,000
- -------------------------------------------------------------------------------
715,000 Cuyahoga County, OH, IDR, (Fogg Centax 11
Project)/(Equitable Federal LOC), 3.90%, 07/01/1996 715,000
- -------------------------------------------------------------------------------
500,000 Delaware County, OH, IDR Weekly VRDNs (Radiation
Sterilizers)/(Wells Fargo LOC) 500,000
- -------------------------------------------------------------------------------
1,525,000 Dover, OH, BANs, 4.20%, 09/12/1996 1,525,780
- -------------------------------------------------------------------------------
1,090,000 Dublin, OH, City School District (FGIC Insured),
4.00%, 12/01/1996 1,092,347
- -------------------------------------------------------------------------------
900,000 Elyria, OH, BANs, 4.00%, 09/26/1996 900,220
- -------------------------------------------------------------------------------
1,600,000 Evendale, OH, IDR, Weekly VRDNs, (Shaver Real
Estate)/(ABN AMRO Bank LOC) 1,600,000
- -------------------------------------------------------------------------------
1,200,000 Franklin County, OH, Hospital Revenue Bonds, Weekly
VRDNs (Childrens Hospital)/(Banc One SPA) 1,200,000
- -------------------------------------------------------------------------------
2,500,000 Franklin County, OH, Hospital Revenue Bonds, Weekly
VRDNs (Holy Cross Hlth Systems)/(J.P. Morgan LOC) 2,500,000
- -------------------------------------------------------------------------------
950,000 Franklin County, OH, IDR, Daily VRDNs (Columbus
College Art Design)/(Bank One LOC) 950,000
- -------------------------------------------------------------------------------
1,500,000 Franklin County, OH, Weekly VRDNs (Dominican
Sisters)/(Fifth Third Bank LOC) 1,500,000
- -------------------------------------------------------------------------------
1,100,000 Geauga County, OH, BANs, 3.79%, 12/20/1996 1,100,980
- -------------------------------------------------------------------------------
1,000,000 Greater Cleveland, OH, RTA, BANs, 3.90%, 10/17/1996 1,001,331
- -------------------------------------------------------------------------------
1,000,000 Hamilton County, OH, BANs (Series A), 4.00%,
04/10/1997 1,003,622
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
OHIO (CONTINUED)
$1,100,000 Hamilton County, OH, Daily VRDNs (Automated Data
Processing Co)/(National Westminster Bank PLC LOC) $1,100,000
- -------------------------------------------------------------------------------
1,100,000 Hamilton County, OH, Health Systems, Daily VRDNs
(Franciscan Sisters)/(Sumitomo Bank LOC) 1,100,000
- -------------------------------------------------------------------------------
1,000,000 Highland Heights, OH, BANs, 3.89%, 12/19/1996 1,000,881
- -------------------------------------------------------------------------------
1,000,000 Hilliard, OH, BANs, 4.14%, 09/19/1996 1,000,642
- -------------------------------------------------------------------------------
400,000 Hilliard, OH, BANs, 4.00%, 04/10/1997 400,891
- -------------------------------------------------------------------------------
1,490,000 Lakota, OH, Local School District, 4.10%, 06/12/1997 1,494,771
- -------------------------------------------------------------------------------
1,660,000 Lebanon, OH, Electric BANs, 3.92%, 12/20/1996 1,662,099
- -------------------------------------------------------------------------------
965,000 Mahoning County, OH, Daily VRDNs, (Series
1992)/(Copeland Oaks)/(Bank One LOC) 965,000
- -------------------------------------------------------------------------------
1,100,000 Marion County, OH, Daily VRDNs
(Bank One LOC) 1,100,000
- -------------------------------------------------------------------------------
1,760,000 Maumee City, OH, BANs, 3.54%, 12/10/1996 1,760,305
- -------------------------------------------------------------------------------
1,000,000 Montgomery County, OH, Miami Valley Hospital (Series
B)/(Northern Trust LOC), 3.50%, 07/09/1996 1,000,000
- -------------------------------------------------------------------------------
1,000,000 Morrow County, OH, Daily VRDNs
(American National Bank LOC) 1,000,000
- -------------------------------------------------------------------------------
1,000,000 Ohio School Districts, Cash Flow Borrowing Program,
BANs, (Series B),
4.53%, 06/30/1997 1,005,081
- -------------------------------------------------------------------------------
2,400,000 Ohio State Air Quality Development Authority Daily
VRDNs (Mead Corp.)/
(Deutsche Bank LOC) 2,400,000
- -------------------------------------------------------------------------------
2,500,000 Ohio State Air Quality, Cleveland Electric, (FGIC
Insured), 3.65%, 08/07/1996 2,500,000
- -------------------------------------------------------------------------------
1,800,000 Ohio State Development Authority, Daily VRDNs (Mead
Co.)/(Swiss bank LOC) 1,800,000
- -------------------------------------------------------------------------------
3,200,000 Ohio State Environmental Improvement, Weekly VRDNs
(USX Corp.)/(Sanwa Bank LOC) 3,200,000
- -------------------------------------------------------------------------------
1,000,000 Ohio State Higher Ed. Facility, Weekly VRDNs
(Mt.Vernon Nazarene College)/(National City Bank
LOC) 1,000,000
- -------------------------------------------------------------------------------
3,200,000 Ohio State Higher Ed. Facility, Daily VRDNs (Oberlin
College)/(Morgan Guaranty
Trust LOC) 3,200,000
- -------------------------------------------------------------------------------
5,800,000 Ohio State University, Daily VRDNs (Series
1986B)/(National Westminster Bank PLC LOC) 5,800,000
- -------------------------------------------------------------------------------
1,460,000 Ohio State University, Weekly VRDNs (Series
1985B)/(National Westminster Bank PLC LOC) 1,460,000
- -------------------------------------------------------------------------------
2,975,000 Ohio State University, Weekly VRDNs
(Series 1992B) 2,975,000
- -------------------------------------------------------------------------------
2,300,000 Ohio State Water Dev. Auth., Daily VRDNs (American
Honda)/(Industrial Bank of
Japan Ltd. LOC) 2,300,000
- -------------------------------------------------------------------------------
1,000,000 Ottawa County, OH, BANs, 3.98%, 04/09/1997 1,001,700
- -------------------------------------------------------------------------------
1,290,000 Portage County, OH, (Series B), BANs,
4.15%, 07/11/1996 1,290,071
- -------------------------------------------------------------------------------
945,000 Richland County, OH, BANs,
4.00%, 12/05/1996 946,417
- -------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Portfolio of Investments
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
OHIO (CONTINUED)
$4,610,000 Sharonville, OH, IDR, Weekly VRDNs (Edgecomb
Metals)/(Banque Nationale De Paris LOC) $4,610,000
- -----------------------------------------------------------------------------
1,000,000 Stark County, OH, BANs, 4.12%, 06/19/1997 1,002,042
- -----------------------------------------------------------------------------
1,425,000 Stark County, OH, Sewer District Improvement, GO,
3.90%, 10/01/1996 1,426,360
- -----------------------------------------------------------------------------
2,100,000 Summit County, OH, IDR, Monthly VRDNs,
(Petrarca/Cedarwood)/(Firemans Newark Insured) 2,100,000
- -----------------------------------------------------------------------------
400,000 Talawanda, OH, Local School District, BANs, 4.70%,
04/03/1997 402,715
- -----------------------------------------------------------------------------
1,800,000 Toledo Lucas County, OH, (CSX Corp.)/(Bank of Nova
Scotia LOC), 3.50%, 09/04/1996 1,800,000
- -----------------------------------------------------------------------------
1,855,000 Toledo-Lucas County, OH, Weekly VRDNs, Convention
Center, (Marine Midland
Bank LOC) 1,855,000
- -----------------------------------------------------------------------------
600,000 University of Cincinnati, OH, BANs (Series N),
4.25%, 08/28/1996 600,244
- -----------------------------------------------------------------------------
1,000,000 University of Cincinnati, OH, BANs (Series AA),
3.89%, 03/20/1997 1,002,034
- -----------------------------------------------------------------------------
1,000,000 University of Cincinnati, OH, BANs,
3.75%, 03/20/1997 1,001,987
- -----------------------------------------------------------------------------
</TABLE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
OHIO (CONTINUED)
$925,000 Vermillion, OH, GO, BANs, 4.10%, 11/01/1996 $925,482
- -----------------------------------------------------------------------------
1,000,000 Warren County, OH, IDR, Weekly VRDNs, (Pioneer
Industrial)/(Mitsubishi Bank Ltd. LOC) 1,000,000
- -----------------------------------------------------------------------------
1,400,000 Willoughby, OH, GO, BANs, 3.75%, 01/30/1997 1,401,927
- -----------------------------------------------------------------------------
1,000,000 Wilmington, OH, GO BANs, 4.07%, 09/05/1996 1,000,684
- -----------------------------------------------------------------------------
700,000 Wooster, OH, IDR, Weekly VRDNs, (Allen
Group)/(Dresdner Bank LOC) 700,000
- -----------------------------------------------------------------------------
TOTAL OHIO (AT AMORTIZED COST) $111,260,483
- -----------------------------------------------------------------------------
PUERTO RICO - 2.6%
2,000,000 Puerto Rico Government Development Bank, 3.40%,
08/12/1996 2,000,000
- -----------------------------------------------------------------------------
1,000,000 Puerto Rico Government Development Bank, 3.55%,
07/09/1996 1,000,000
- -----------------------------------------------------------------------------
TOTAL PUERTO RICO (AT AMORTIZED COST) $3,000,000
- -----------------------------------------------------------------------------
OTHER - .3%
345,000 Nuveen Tax-Exempt Money Market Fund, Inc. 345,000
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $114,605,483(C)
- -----------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
------------------
THE MONITOR U.S. TREASURY MONEY MARKET FUND June 30, 1996
(unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------------------------------------
<C> <S> <C>
U.S. TREASURY BILLS - 48.9%
- ----------------------------------------
$10,000,000 07/05/1996 $9,994,811
- ----------------------------------------
10,000,000 07/25/1996 9,966,667
- ----------------------------------------
15,000,000 08/08/1996 14,920,278
- ----------------------------------------
10,000,000 08/15/1996 9,937,938
- ----------------------------------------
10,000,000 08/22/1996 9,928,067
- ----------------------------------------
10,000,000 09/05/1996 9,910,625
- ----------------------------------------
20,000,000 09/12/1996 19,793,572
- ----------------------------------------
20,000,000 09/19/1996 19,775,222
- ----------------------------------------
10,000,000 09/26/1996 9,878,321
- ----------------------------------------
30,000,000 10/03/1996 29,602,981
- ----------------------------------------
10,000,000 10/10/1996 9,857,478
- ----------------------------------------
20,000,000 10/17/1996 19,693,850
- ----------------------------------------
10,000,000 10/24/1996 9,838,521
- ----------------------------------------
10,000,000 10/31/1996 9,826,150
- ----------------------------------------
10,000,000 11/07/1996 9,815,996
- ----------------------------------------
10,000,000 11/14/1996 9,801,855
- ----------------------------------------
10,000,000 11/21/1996 9,791,657
- ----------------------------------------
10,000,000 11/29/1996 9,785,244
- ----------------------------------------
10,000,000 12/05/1996 9,769,297
- ----------------------------------------
10,000,000 12/26/1996 9,744,867
- ----------------------------------------
TOTAL U.S. TREASURY BILLS 251,633,397
- ----------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------
<C> <S> <C>
(D) REPURCHASE AGREEMENTS--51.4%
- -----------------------------------------------
$29,202,000 Daiwa Securities
of America,
Inc., 5.43%,
dated 06/28/96,
due 07/01/1996 $ 29,202,000
- -----------------------------------------------
60,000,000 Daiwa Securities
of America,
Inc., 5.45%,
dated 06/28/96,
due 07/01/1996 60,000,000
- -----------------------------------------------
15,000,000 Dean Witter
Reynolds, Inc.,
5.10%, dated
06/24/96, due
07/01/1996 15,000,000
- -----------------------------------------------
15,000,000 First Boston
Corp., 5.23%,
dated 06/26/96,
due 07/03/1996 15,000,000
- -----------------------------------------------
15,000,000 First Boston
Corp., 5.24%,
dated 06/28/96,
due 07/05/1996 15,000,000
- -----------------------------------------------
15,000,000 Goldman Sachs &
Co., 5.22%,
dated 06/25/96,
due 07/02/1996 15,000,000
- -----------------------------------------------
10,000,000 Goldman Sachs &
Co., 5.25%,
dated 06/28/96,
due 07/01/1996 10,000,000
- -----------------------------------------------
15,000,000 Lehman Brothers
Inc., 5.30%,
dated 06/27/96,
due 07/05/1996 15,000,000
- -----------------------------------------------
15,000,000 Morgan Stanley &
Co. Inc.,
5.25%, dated
06/26/96, due
07/03/1996 15,000,000
- -----------------------------------------------
15,000,000 Morgan Stanley &
Co. Inc.,
5.30%, dated
06/28/96, due
07/02/1996 15,000,000
- -----------------------------------------------
15,000,000 Nomura Bank
Limited, 5.23%,
dated 06/25/96,
due 07/02/1996 15,000,000
- -----------------------------------------------
15,000,000 Nomura Bank
Limited, 5.20%,
dated 06/26/96,
due 07/03/1996 15,000,000
- -----------------------------------------------
15,000,000 Prudential
Securities
Inc., 5.28%,
dated 06/24/96,
due 07/01/1996 15,000,000
- -----------------------------------------------
15,000,000 Sanwa Bank
Limited, 5.30%,
dated 06/27/96,
due 07/03/1996 15,000,000
- -----------------------------------------------
TOTAL REPURCHASE AGREEMENTS 264,202,000
- -----------------------------------------------
TOTAL INVESTMENTS (AT AMOR-
TIZED COST) $515,835,397(C)
- -----------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
7
<PAGE>
---------------------------------------------
THE MONITOR GROWTH FUND June 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ------------------------------------------------------------
<C> <S> <C>
COMMON STOCK - 98.1%
BASIC INDUSTRY - .6%
50,000 Worthington Industries Inc. $1,043,750
- ------------------------------------------------------------
CAPITAL GOODS - 3.0%
60,000 Boeing Co. 5,227,500
- ------------------------------------------------------------
CHEMICALS - 8.7%
60,000 Eastman Chemical Co. 3,652,500
240,000 Hanna (M.A.) Co. 5,010,000
16,600 Potash Corp. 1,099,750
100,000 Sigma Aldrich Corp. 5,350,000
- ------------------------------------------------------------
15,112,250
- ------------------------------------------------------------
CONSUMER NON-DURABLES - 6.8%
107,000 American Brands 4,855,125
70,000 Colgate-Palmolive Co. 5,932,500
70,000 Hanson PLC 997,500
- ------------------------------------------------------------
11,785,125
- ------------------------------------------------------------
CONSUMER PRODUCTS - 16.9%
170,000 American Greetings Corp. 4,653,750
100,000 International Flavors & Fragrances 4,762,500
168,750 Mattel, Inc. 4,830,469
106,300 Media General Cl. A 3,959,675
150,000 Newell Co. 4,593,750
100,000 Tambrands, Inc. 4,087,500
50,000 Wrigley Wm Jr Co. 2,525,000
- ------------------------------------------------------------
29,412,644
- ------------------------------------------------------------
CONTAINERS & PACKAGING - 1.6%
50,000 Avery Dennison Corp. 2,743,750
- ------------------------------------------------------------
ELECTRICAL EQUIPMENT - 6.0%
40,000 Emerson Electric Co. 3,615,000
36,800 General Electric Co. 3,183,200
55,582 Hubbell, Inc. 3,682,308
- ------------------------------------------------------------
10,480,508
- ------------------------------------------------------------
ENERGY - 6.5%
95,000 Anadarko Petroleum 5,510,000
70,000 Schlumberger 5,897,500
- ------------------------------------------------------------
11,407,500
- ------------------------------------------------------------
FINANCIAL - 2.7%
105,000 American Express 4,685,625
- ------------------------------------------------------------
FOOD & BEVERAGE - 5.6%
76,600 McDonald's Corp. 3,581,050
177,000 Pepsico, Inc. 6,261,375
- ------------------------------------------------------------
9,842,425
- ------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------
<C> <S> <C>
FOOD DISTRIBUTOR/SER. SYSTEM - 2.3%
115,000 Sysco Corp. $3,938,750
- ------------------------------------------------------------------------
HEALTH CARE - .2%
6,000 Medtronic Inc. 336,000
- ------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 5.2%
15,000 Illinois Tool Works, Inc. 1,014,375
75,000 Nordson Corp. 4,237,500
240,000 R.P.M., Inc. 3,750,000
- ------------------------------------------------------------------------
9,001,875
- ------------------------------------------------------------------------
INSURANCE - 4.9%
33,500 American International Group 3,303,938
73,500 Cincinnati Financial Corp. 4,217,061
7,000 General RE Corp. 1,065,750
- ------------------------------------------------------------------------
8,586,749
- ------------------------------------------------------------------------
PHARMACEUTICALS - 11.9%
100,000 Abbott Laboratories 4,350,000
19,000 American Home Products Corp. 1,142,375
60,000 Merck & Co. 3,877,500
90,000 Pfizer, Inc. 6,423,750
24,000 Pharmacia & Upjohn, Inc. 1,065,000
65,000 Schering Plough Corp. 4,078,750
- ------------------------------------------------------------------------
20,937,375
- ------------------------------------------------------------------------
RETAIL - 5.9%
110,000 Home Depot 5,940,000
30,000 Kohl's Corporation* 1,098,750
95,000 Walgreen 3,182,500
- ------------------------------------------------------------------------
10,221,250
- ------------------------------------------------------------------------
TECHNOLOGY - 8.8%
140,000 Automatic Data Processing, Inc. 5,407,500
13,000 Computer Sciences Corp.* 971,750
65,000 Electronic Data Systems Corp 3,493,750
15,000 Hewlett-Packard Co. 1,494,375
15,000 Microsoft* 1,801,875
35,000 Motorola, Inc. 2,200,625
- ------------------------------------------------------------------------
15,369,875
- ------------------------------------------------------------------------
TELECOMMUNICATIONS - .5%
33,000 Airtouch Communications, Inc.* 932,250
- ------------------------------------------------------------------------
TOTAL COMMON STOCK (IDENTIFIED COST $129,281,239) 171,065,201
- ------------------------------------------------------------------------
(E)COMMERCIAL PAPER - 1.9%
3,330,204 Prudential Funding Corp. 5.25%, 07/01/1996 (at
amortized cost) 3,330,204
- ------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $132,611,443) $174,395,405
- ------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
------------------------------------
THE MONITOR INCOME EQUITY FUND June 30, 1996 (unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
- ----------------------------------------------------
<C> <S> <C>
COMMON STOCK - 80.4%
- ----------------------------------------------------
BANKING & FINANCE - 14.1%
30,000 Aetna Life $2,145,000
65,000 Chase Manhattan Corp 4,590,625
120,000 Corestates Financial Corp. 4,620,000
100,000 Fleet Financial Group Inc. 4,350,000
100,000 National City Corp. 3,512,500
100,000 Ohio Casualty Corp. 3,475,000
- ----------------------------------------------------
22,693,125
- ----------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------
<C> <S> <C>
BASIC INDUSTRY - 8.1%
40,000 duPont (E.I.) deNemours & Co. $3,165,000
170,000 Monsanto Co. 5,525,000
90,000 PPG Industries, Inc. 4,387,500
- -------------------------------------------------------
13,077,500
- -------------------------------------------------------
BUSINESS SERVICES - 4.6%
75,000 Dun & Bradstreet Corp. 4,687,500
108,900 John H. Harland Co. 2,681,663
- -------------------------------------------------------
7,369,163
- -------------------------------------------------------
</TABLE>
8
<PAGE>
Portfolio of Investments
------------------------------------
THE MONITOR INCOME EQUITY FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ------------------------------------------------------
<C> <S> <C>
CAPITAL GOODS - 3.7%
105,000 Worthington Industries, Inc. $2,191,875
172,400 Zero Corp. 3,685,050
- ------------------------------------------------------
5,876,925
- ------------------------------------------------------
CONSUMER DURABLES - 2.0%
100,000 Ford Motor Co. 3,237,500
- ------------------------------------------------------
CONSUMER NON-DURABLES - 14.9%
70,000 American Brands 3,176,250
80,000 American Home Products Corp. 4,810,000
35,000 Bristol Meyers Squibb Co. 3,150,000
40,000 Clorox Co. 3,545,000
150,000 Hanson PLC 2,137,500
116,000 Pharmacia Upjohn Inc. 5,147,500
300,000 R.J.R. Nabisco(Series C) 1,950,000
- ------------------------------------------------------
23,916,250
- ------------------------------------------------------
ELECTRICAL EQUIPMENT - 2.9%
54,000 General Electric Co. 4,671,000
- ------------------------------------------------------
ENERGY - 10.0%
30,000 Atlantic Richfield Co. 3,555,000
42,000 Exxon Corp. 3,648,750
25,000 Royal Dutch Petroleum Co. 3,843,750
60,000 Texaco Inc. 5,032,500
- ------------------------------------------------------
16,080,000
- ------------------------------------------------------
FINANCE-RETAIL - .7%
50,000 Security Capital Industrial 1,156,250
- ------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 2.7%
30,000 American Health 663,750
100,000 National Health Property 2,112,500
65,500 Simon Property Group 1,604,750
- ------------------------------------------------------
4,381,000
- ------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------------------------
<C> <S> <C>
TECHNOLOGY - 3.0%
90,000 Xerox Corp. $4,815,000
- ----------------------------------------------------------------------
TELECOMMUNICATIONS - 5.2%
30,000 Bell Atlantic Corp. 1,912,500
65,000 GTE Corp. 2,908,750
45,000 Pacific Telesis Group 1,518,750
30,000 Telecom of New Zealand 2,002,500
- ----------------------------------------------------------------------
8,342,500
- ----------------------------------------------------------------------
UTILITIES - 8.5%
200,000 DPL Inc. 4,875,000
120,000 IPALCO Enterprises Inc. 3,150,000
90,000 Peoples Energy Corp. 3,015,000
90,000 Wisconsin Energy Corp. 2,598,750
- ----------------------------------------------------------------------
13,638,750
- ----------------------------------------------------------------------
TOTAL COMMON STOCK (IDENTIFIED COST $88,399,447) 129,254,963
- ----------------------------------------------------------------------
U.S. TREASURY SECURITIES - 11.3%
$4,000,000 U.S. Treasury Note 6.75%,6/30/99 4,047,360
1,000,000 U.S. Treasury Note 7.75%, 2/15/01 1,050,910
5,000,000 U.S. Treasury Note 6.875%, 2/28/97 5,039,150
6,700,000 U.S.Treasury Note 8.875, 08/15/17 8,044,622
- ----------------------------------------------------------------------
TOTAL U.S. TREASURY SECURITIES
(IDENTIFIED COST $17,938,299) 18,182,042
- ----------------------------------------------------------------------
(E) COMMERCIAL PAPER - 7.8%
3,000,000 American Express, 5.364%, 07/15/1 3,000,000
4,000,000 Chevron, 5.333%, 07/08/1996 4,000,000
5,453,268 Prudential Funding Corp. 5.252%, 07/01/1996 5,453,268
- ----------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 12,453,268
- ----------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $118,791,014) $159,890,273
- ----------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
------------------------------------
THE MONITOR OHIO TAX-FREE FUND June 30, 1996 (unaudited)
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES - 94.4%
- -------------------------------------------------------------------------------
OHIO - 94.4%
$215,000 Alliance, OH, City School District, (AMBAC Insured),
6.20%, 12/01/2001 $230,588
- -------------------------------------------------------------------------------
250,000 Archbold, OH, Local School District, (MBIA
Insured)/(Prerefunded 12/1/98 @102), 6.80% 270,313
- -------------------------------------------------------------------------------
300,000 Aurora, OH, City School District, (FGIC Insured),
5.55%, 12/01/2007 306,000
- -------------------------------------------------------------------------------
290,000 Aurora, OH, GO, (BIG Insured)/(Prerefunded 12/1/99
@102), 7.35% 319,725
- -------------------------------------------------------------------------------
280,000 Avon Lake, OH, Water Systems, (AMBAC Insured),
5.10%, 10/01/2005 278,600
- -------------------------------------------------------------------------------
250,000 Beachwood, OH, City School District, 6.60%,
12/01/2004 271,250
- -------------------------------------------------------------------------------
215,000 Bedford, OH, City School District (Energy
Conservation Improvement), 5.35%, 06/15/2002 217,956
- -------------------------------------------------------------------------------
200,000 Bedford, OH, City School District (Energy
Conservation Improvement), 5.40%, 06/15/2003 202,250
- -------------------------------------------------------------------------------
205,000 Berea, OH, GO, 6.95%, 12/01/1998 217,556
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Blue Ash, OH, GO, 6.50%, 11/01/1999 $265,938
- -------------------------------------------------------------------------------
230,000 Bowling Green, OH, City School District, (ETM),
6.90%, 12/01/1998 244,375
- -------------------------------------------------------------------------------
250,000 Butler County, OH, Hospital Facility (Middletown
Hospital Project)/(FGIC Insured), 5.25%, 11/15/2000 255,938
- -------------------------------------------------------------------------------
500,000 Butler County, OH, Sewer System Revenue (AMBAC
Insured), 4.80%, 12/01/1998 505,625
- -------------------------------------------------------------------------------
250,000 Centerville, OH, City School District, 6.63%,
12/01/1999 266,250
- -------------------------------------------------------------------------------
230,000 Cincinnati, OH, 4.50%, 12/01/1997 232,013
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, 6.75%, 12/01/2001 274,688
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, 7.00%, 10/01/1997 259,375
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, Street Improvement, 7.00%,
12/01/1999 270,625
- -------------------------------------------------------------------------------
500,000 City of Cleveland, (Public Power System)/(Series B)
(MBIA Insured), 5.90%, 11/15/2001 527,500
- -------------------------------------------------------------------------------
500,000 Cleveland Heights, OH, (Series B), 5.60%, 12/01/2002 521,250
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Portfolio of Investments
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500,000 Cleveland Heights, OH, GO (FGIC Insured), 6.75%,
12/01/1997 $520,000
- -------------------------------------------------------------------------------
200,000 Cleveland, OH, GO (Series B)/(AMBAC Insured), 6.40%,
10/01/2002 217,500
- -------------------------------------------------------------------------------
250,000 Columbus, OH, (FGIC Insured)/(Prerefunded 3/1/99
@102), 7.00% 270,938
- -------------------------------------------------------------------------------
270,000 Columbus, OH, (Series 2), 5.35%, 05/15/2003 278,438
- -------------------------------------------------------------------------------
500,000 Columbus, OH, (Series B), 6.30%, 01/01/2005 535,625
- -------------------------------------------------------------------------------
750,000 Columbus, OH, (Series C), 4.35%, 09/15/1998 752,813
- -------------------------------------------------------------------------------
250,000 Columbus, OH, City School District (FGIC Insured),
5.05%, 12/01/2002 253,750
- -------------------------------------------------------------------------------
250,000 Columbus, OH, GO, 6.30%, 04/15/2003 265,625
- -------------------------------------------------------------------------------
250,000 Copley Fairlawn, OH, City School District, 5.15%,
12/01/2001 256,250
- -------------------------------------------------------------------------------
500,000 Cuyahoga County, OH, (Prerefunded 1/1/99 @102),
6.90% 545,000
- -------------------------------------------------------------------------------
250,000 Cuyahoga County, OH, (Prerefunded 10/1/98 @102),
7.00% 269,688
- -------------------------------------------------------------------------------
500,000 Cuyahoga County, OH, (Series B), 4.50%, 10/01/2000 497,500
- -------------------------------------------------------------------------------
500,000 Cuyahoga County, OH, GO, 5.20%, 11/15/2009 487,500
- -------------------------------------------------------------------------------
200,000 Cuyahoga Falls, OH, GO (MBIA Insured), 5.40%,
12/01/2006 203,750
- -------------------------------------------------------------------------------
400,000 Delaware, OH, GO, 5.40%, 11/01/2002 407,000
- -------------------------------------------------------------------------------
250,000 Dover, OH, Electric System (FGIC Insured), 5.50%,
12/01/2007 250,938
- -------------------------------------------------------------------------------
250,000 Dublin, OH, City School District (FGIC Insured),
6.05%, 12/01/2003 268,438
- -------------------------------------------------------------------------------
250,000 Dublin, OH, City School District (FGIC Insured),
6.15%, 12/01/2004 270,313
- -------------------------------------------------------------------------------
200,000 Dublin, OH, Local School District (FGIC Insured)
(ETM), 6.80%, 12/01/1997 208,000
- -------------------------------------------------------------------------------
250,000 Eastlake, OH, GO, 5.00%, 12/01/2004 243,750
- -------------------------------------------------------------------------------
420,000 Euclid, OH, GO (Prerefunded 12/1/99 @102), 7.00% 459,900
- -------------------------------------------------------------------------------
500,000 Euclid, OH, GO, 5.30%, 12/01/2007 489,375
- -------------------------------------------------------------------------------
250,000 Euclid, OH, GO, 6.40%, 12/01/2004 268,750
- -------------------------------------------------------------------------------
245,000 Fairfield, OH, City School District (FGIC Insured),
5.65%, 12/01/2006 252,656
- -------------------------------------------------------------------------------
250,000 Findlay, OH, Sewer System, 5.20%, 07/01/2006 247,188
- -------------------------------------------------------------------------------
270,000 Findlay, OH, GO, 6.70%, 08/01/1997 277,690
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, (Childrens Hospital)/(Series
A), 5.80%, 11/01/2010 501,875
- -------------------------------------------------------------------------------
250,000 Franklin County, OH, (Childrens Hospital)/(Series
A), 6.50%, 05/01/2007 269,063
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$285,000 Franklin County, OH, (Convention Authority)/(MBIA
Insured), 5.50%, 12/01/2003 $293,194
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, Childrens Hospital (Series
A)/(Prerefunded 11/1/01 @102), 6.40% 545,000
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, Doctor's Hospital, 5.05%,
12/01/1999 500,625
- -------------------------------------------------------------------------------
305,000 Franklin County, OH, GO (MBIA Insured), 6.00%,
09/01/2006 324,063
- -------------------------------------------------------------------------------
550,000 Franklin County, OH, Holy Cross Hosp. (Series A),
7.20%, 06/01/2000 586,438
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, 5.05%, 12/01/2005 501,875
- -------------------------------------------------------------------------------
515,000 Gahanna, OH, GO, 5.25%, 06/01/2002 525,944
- -------------------------------------------------------------------------------
250,000 Gahanna, OH, (Series H)/(Prerefunded 6/1/01 @102),
6.40% 271,875
- -------------------------------------------------------------------------------
580,000 Gahanna, OH, GO, 5.55%, 06/01/2005 595,950
- -------------------------------------------------------------------------------
250,000 Grandview Heights, OH, City School District, 5.40%,
12/01/2005 253,750
- -------------------------------------------------------------------------------
250,000 Grandview Heights, OH, 7.10%, 12/01/2006 273,438
- -------------------------------------------------------------------------------
200,000 Greater Cleveland, OH, Regional Transit Authority,
4.85%, 12/01/1998 201,500
- -------------------------------------------------------------------------------
300,000 Greene County, OH, Water System, (Series A), (FGIC
Insured), 5.75%, 12/01/2009 306,750
- -------------------------------------------------------------------------------
300,000 Hamilton County, OH, (Museum Center), 5.95%,
12/01/2002 318,750
- -------------------------------------------------------------------------------
1,000,000 Hamilton County, OH, (Museum Project)/(Prerefunded
12/1/97 @103), 7.13% 1,072,500
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Childrens Hospital, (BIG
Insured), 6.75%, 05/15/2002 522,325
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Childrens Hospital, (Series
D)/(FGIC Insured), 4.90%, 05/15/2003 495,625
- -------------------------------------------------------------------------------
250,000 Hamilton County, OH, Childrens Hospital, (Series
E)/(MBIA Insured), 4.60%, 05/15/2000 249,688
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Christ Hospital, (Series
A)/(FGIC Insured), 6.50%, 01/01/2002 530,625
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Hosp. Facilities, (Episcopal
Retirement)/(Fifth Third Bank LOC), 5.90%,
01/01/1999 517,500
- -------------------------------------------------------------------------------
95,000 Hamilton County, OH, Sewer System (Series
A)/(Prerefunded 6/1/01 @102), 6.30% 102,125
- -------------------------------------------------------------------------------
155,000 Hamilton County, OH, Sewer System, (Series A),
6.30%, 12/01/2001 165,850
- -------------------------------------------------------------------------------
195,000 Hamilton County, OH, Sewer System, (Series
A)/(Prerefunded 6/1/01 @102), 6.40% 212,063
- -------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
Portfolio of Investments
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$305,000 Hamilton County, OH, Sewer System, (Series A),
6.40%, 12/01/2003 $330,544
- -------------------------------------------------------------------------------
390,000 Hamilton, OH, Electric System Revenue Bonds, (Series
A)/(FGIC Insured), 5.10%, 10/15/1999 395,363
- -------------------------------------------------------------------------------
250,000 Hamilton, OH, Gas System, (Series A)/(MBIA Insured),
4.40%, 10/15/2003 238,438
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, GO, 4.70%, 12/01/2004 485,000
- -------------------------------------------------------------------------------
315,000 Hancock County, OH, GO, 5.20%, 12/01/2008 308,306
- -------------------------------------------------------------------------------
500,000 Hilliard, OH, City School District, (Series A),
5.35%, 12/01/2004 506,875
- -------------------------------------------------------------------------------
170,000 Hilliard, OH, GO, 5.35%, 12/01/2006 169,150
- -------------------------------------------------------------------------------
180,000 Hilliard, OH, GO, 5.50%, 12/01/2007 183,150
- -------------------------------------------------------------------------------
230,000 Hilliard, OH, GO, 6.75%, 12/01/1998 243,225
- -------------------------------------------------------------------------------
250,000 Hilliard, OH, School District, (AMBAC Insured),
5.00%, 12/01/2003 252,188
- -------------------------------------------------------------------------------
245,000 Indian Hill, OH, Water Works Revenue Bonds, 4.90%,
06/01/2005 243,469
- -------------------------------------------------------------------------------
345,000 Kettering, OH, GO (ETM), 6.70%, 12/01/1997 357,938
- -------------------------------------------------------------------------------
585,000 Kettering, OH, GO, 5.05%, 12/01/2004 582,075
- -------------------------------------------------------------------------------
255,000 Lakewood, OH, City School District, 5.05%,
12/01/2005 253,406
- -------------------------------------------------------------------------------
535,000 Lakewood, OH, GO, 5.85%, 12/01/2002 567,100
- -------------------------------------------------------------------------------
250,000 Lakota, OH, Local School District, (AMBAC Insured),
6.40%, 12/01/2000 268,750
- -------------------------------------------------------------------------------
500,000 Lorain County, OH, Water Authority, (AMBAC Insured),
4.95%, 10/01/2004 494,375
- -------------------------------------------------------------------------------
275,000 Lyndhurst, OH, (Prerefunded 12/1/97 @102), 7.40%,
12/01/2000 293,219
- -------------------------------------------------------------------------------
200,000 Marysville, OH, Village School, (AMBAC Insured),
6.90%, 12/01/2000 217,750
- -------------------------------------------------------------------------------
300,000 Massillon, OH, City School District, (AMBAC
Insured), 4.80%, 12/01/2006 287,250
- -------------------------------------------------------------------------------
265,000 Mentor, OH, (Series A1), 6.80%, 12/01/1998 279,906
- -------------------------------------------------------------------------------
250,000 Mentor, OH, Street Improvement, (Series 1991-A),
6.70%, 12/01/2003 268,125
- -------------------------------------------------------------------------------
500,000 Miami University, OH, 5.40%, 12/01/2005 506,250
- -------------------------------------------------------------------------------
200,000 Miami Valley, OH, Regional Transit Authority, 5.10%,
12/01/2001 202,250
- -------------------------------------------------------------------------------
285,000 Montgomery City, Ohio, 5.75%, 12/01/2006 292,481
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, (Miami Valley Hospital)/
(Series A)/(AMBAC Insured), 6.10%, 11/15/2002 533,125
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, (Series A)/(Prerefunded
9/1/01 @100), 6.45% 538,750
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500,000 Montgomery County, OH, (Series A)/(Prerefunded
9/1/01 @100), 6.50% $539,375
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, Garbage Rev. Bonds, (FGIC
Insured)/(Prerefunded 11/1/96 @100), 6.60% 505,040
- -------------------------------------------------------------------------------
270,000 Montgomery, OH, 5.60%, 12/01/2005 276,413
- -------------------------------------------------------------------------------
250,000 Muskingum County, OH, Bethesda Hospital, (Connie Lee
Insured), 5.35%, 12/01/2007 247,813
- -------------------------------------------------------------------------------
500,000 Northeast, OH, Regional Sewer District, (AMBAC
Insured), 6.40%, 11/15/2003 545,000
- -------------------------------------------------------------------------------
250,000 Norwalk, OH, Water Work Systems, (Series 1996),
5.60%, 04/01/2010 252,188
- -------------------------------------------------------------------------------
235,000 Norwalk, OH, Water Works Systems, (Series 1996),
5.55%, 04/01/2009 236,763
- -------------------------------------------------------------------------------
500,000 Ohio Municipal Electric Generation Agency (AMBAC
Insured), 4.75%, 02/15/2000 501,875
- -------------------------------------------------------------------------------
250,000 Ohio State Building Authority, (Data Center
Project)/(Series A)/(ETM), 7.00%, 10/01/1997 259,375
- -------------------------------------------------------------------------------
250,000 Ohio State Building Authority, (Data Center
Project)/(Series A)/(Prerefunded 10/1/97 @102),
7.10% 264,375
- -------------------------------------------------------------------------------
500,000 Ohio State Building Authority, (James Rhodes
Center)/(Series A), 6.20%, 06/01/2004 530,625
- -------------------------------------------------------------------------------
500,000 Ohio State Building Authority, (Series A)/
(Correction Facility), 6.50%, 10/01/2004 537,500
- -------------------------------------------------------------------------------
125,000 Ohio State Building Authority, (Series
A)/(Prerefunded 3/1/99 @102), 7.25% 136,406
- -------------------------------------------------------------------------------
125,000 Ohio State Building Authority, (Series
H)/(Prerefunded 8/1/99 @102), 7.25% 137,500
- -------------------------------------------------------------------------------
250,000 Ohio State Capital Facilities, (Series 95A)/(AMBAC
Insured), 5.80%, 06/01/2003 264,375
- -------------------------------------------------------------------------------
300,000 Ohio State Economic Development (Sysco Foods),
6.60%, 12/01/2003 328,125
- -------------------------------------------------------------------------------
200,000 Ohio State Higher Education Facacility, (Pooled
Borrowing)/(Banc One LOC), 6.05%, 12/01/1998 208,000
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility (University of
Dayton)/(FGIC Insured), 6.10%, 12/01/2001 267,188
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (Oberlin
College), 5.00%, 10/01/2002 252,813
- -------------------------------------------------------------------------------
555,000 Ohio State Higher Education Facility, (Ohio Northern
University)/(Connie Lee Insured), 4.90%, 05/01/2003 547,369
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility,(John Carroll
University Project), 5.35%, 10/01/2005 251,875
- -------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
Portfolio of Investments
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Ohio State Higher Education Facility, (Oberlin
College), 4.50%, 10/01/1999 $250,313
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (Xavier
University)/(MBIA Insured), 7.10%, 11/01/1998 266,563
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Mental
Health)/(Series A), 7.30%, 06/01/2001 269,063
- -------------------------------------------------------------------------------
500,000 Ohio State Public Facilities, (Mental
Health)/(Series A)/(MBIA Insured), 6.75%,
12/01/2001 540,625
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series B), 6.90%,
06/01/1998 260,938
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series B)/
(Prerefunded 5/1/97 @100), 7.13% 261,538
- -------------------------------------------------------------------------------
1,195,000 Ohio State Public Facilities, (Series IIA)/ (FSA
Insured), 5.30%, 12/01/1997 1,220,394
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series IIB)/
(AMBAC Insured), 5.70%, 11/01/1999 260,000
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Mental
Health)/(Series A), 7.20%, 12/01/1999 260,518
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series A)/ (MBIA
Insured), 6.50%, 06/01/2000 267,500
- -------------------------------------------------------------------------------
500,000 Ohio State University GO, (Series A2), 5.75%,
12/01/2009 509,375
- -------------------------------------------------------------------------------
500,000 Ohio State University, (Series A2), 4.85%,
12/01/1998 507,500
- -------------------------------------------------------------------------------
500,000 Ohio State University, 5.30%, 12/01/2001 515,000
- -------------------------------------------------------------------------------
500,000 Ohio State Water Development Authority, (Clean
Water Project)/(MBIA Insured), 5.65%, 06/01/2005 520,625
- -------------------------------------------------------------------------------
650,000 Ohio State Water Development Authority, (Pure Water
Project)/(MBIA Insured), 5.00%, 12/01/1998 661,375
- -------------------------------------------------------------------------------
250,000 Ohio State Water Development Authority, (Series
I)/(Prerefunded 6/1/98 @102), 7.10% 268,438
- -------------------------------------------------------------------------------
250,000 Olmstead Falls, OH, Local School District, (FGIC
Insured), 6.30%, 12/15/2001 270,938
- -------------------------------------------------------------------------------
175,000 Pickerington, OH, Local School District, (FGIC
Insured), 4.70%, 12/04/2004 171,938
- -------------------------------------------------------------------------------
250,000 Pickerington, OH, School District, (AMBAC Insured),
5.55%, 12/01/2007 254,375
- -------------------------------------------------------------------------------
200,000 Portage County, OH, (AMBAC Insured), 5.20%,
12/01/2001 205,000
- -------------------------------------------------------------------------------
200,000 Salem, OH, Sewer System Revenue Bonds, (AMBAC
Insured), 6.00%, 02/01/2001 201,420
- -------------------------------------------------------------------------------
250,000 Sandusky County, OH, (AMBAC Insured), 6.65%,
12/01/1998 263,125
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500,000 Solon, OH, GO, 5.25%, 12/01/2007 $492,500
- -------------------------------------------------------------------------------
150,000 Solon, OH, GO, 5.65%, 12/01/2005 154,688
- -------------------------------------------------------------------------------
250,000 Solon, OH, GO, 6.55%, 12/01/2000 270,313
- -------------------------------------------------------------------------------
250,000 Solon, OH, GO, 6.65%, 12/01/2001 271,250
- -------------------------------------------------------------------------------
250,000 Solon, OH, Local School District, (ETM), 6.85%,
12/01/2000 271,563
- -------------------------------------------------------------------------------
245,000 South Euclid, OH, Recreational Facilities, 6.15%,
12/01/2000 259,088
- -------------------------------------------------------------------------------
250,000 South Western City School District, (ETM), 6.10%,
12/01/1999 262,813
- -------------------------------------------------------------------------------
250,000 South Western City School District, (Series
A)/(AMBAC Insured), 6.00%, 12/01/2004 266,875
- -------------------------------------------------------------------------------
250,000 Springfield, OH, Local School District, 6.00%,
12/01/2002 265,938
- -------------------------------------------------------------------------------
400,000 State of Ohio, GO, 4.50%, 08/01/2001 398,500
- -------------------------------------------------------------------------------
500,000 State of Ohio, Highway Revenue Bonds, (Series T),
4.80%, 05/15/2001 505,000
- -------------------------------------------------------------------------------
250,000 State of Ohio, Highway Revenue Bonds, (Series S),
4.50%, 05/15/2000 249,688
- -------------------------------------------------------------------------------
250,000 Summit County, OH, GO, (MBIA Insured), 5.65%,
12/01/2007 256,250
- -------------------------------------------------------------------------------
500,000 Toledo, OH, Sewer System Revenue Bonds, (Series
A)/(MBIA Insured), 7.25%, 11/15/2000 538,750
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (Series R5), 5.15%,
06/01/2005 247,500
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (MBIA Insured), 6.40%,
12/01/2003 269,375
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (Series R9), 5.60%,
06/01/2009 247,188
- -------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (Series V), 5.25%,
06/01/2008 243,438
- -------------------------------------------------------------------------------
265,000 University of Cincinnati, OH, (Series V), 5.35%,
06/01/2009 257,381
- -------------------------------------------------------------------------------
200,000 Upper Arlington, OH, City School District,
(Prerefunded 12/1/98 @102), 6.80% 215,750
- -------------------------------------------------------------------------------
400,000 Warren County, OH, Water Improvement, (P&G Project),
5.25%, 12/01/2007 397,500
- -------------------------------------------------------------------------------
175,000 Warren County, OH, Sewer Improvement, (Lower Miami
Valley), 5.25%, 12/01/2008 172,375
- -------------------------------------------------------------------------------
185,000 Warren County, OH, Sewer Improvement, (Lower Miami
Valley), 5.35%, 12/01/2009 182,225
- -------------------------------------------------------------------------------
170,000 Warren County, OH, Sewer System Revenue Bonds,
(Series A)/(FGIC Insured), 6.95%, 12/01/2002 188,488
- -------------------------------------------------------------------------------
235,000 Warren County, OH, Water Works, (FGIC Insured),
6.10%, 12/01/2002 249,981
- -------------------------------------------------------------------------------
470,000 Westerville, OH, Water System, 5.90%, 12/01/2004 498,788
- -------------------------------------------------------------------------------
250,000 Worthington, OH, City School District, (FGIC
Insured), 5.85%, 06/01/2002 262,500
- -------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
Portfolio of Investments
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Worthington, OH, City School District, (MBIA
Insured), 7.15%, 12/01/2000 $273,750
- -------------------------------------------------------------------------------
250,000 Wright State University, (AMBAC Insured), 5.00%,
05/01/2006 243,100
- -------------------------------------------------------------------------------
TOTAL LONG TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $56,037,680) $58,082,148
- -------------------------------------------------------------------------------
SHORT TERM MUNICIPAL SECURITIES - 5.6%
- -------------------------------------------------------------------------------
200,000 Cincinnati Hamilton County, OH, Daily VRDNs (Kenwood
Office Assoc.)/(Fuji Bank LTD LOC) 200,000
- -------------------------------------------------------------------------------
500,000 City of Clyde, OH, Water Works Revenue Bond, 5.60%,
05/01/1997 506,010
- -------------------------------------------------------------------------------
250,000 Franklin County, OH, Convention Facility Authority
(MBIA Insured), 6.40%, 12/01/1996 252,975
- -------------------------------------------------------------------------------
300,000 Hamilton County, OH, Health System, Daily VRDNs,
(Franciscan Health)/(Sumitomo Bank LOC) 300,000
- -------------------------------------------------------------------------------
225,000 Ohio State Higher Education Facility, (University of
Dayton Project)/(FGIC Insured), 6.70%, 12/01/1996 227,959
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
SHORT TERM MUNICIPAL SECURITIES (CONTINUED)
- ----------------------------------------------------------------------------
$275,000 Ohio State Highway, (Series O), 6.70%, 05/15/1997 $281,776
- ----------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Mental
Health)/(Series A)/(MBIA Insured), 6.50%,
06/01/1997 256,068
- ----------------------------------------------------------------------------
250,000 Worthington, OH, City School District, (MBIA
Insured), 6.90%, 12/01/1996 253,000
- ----------------------------------------------------------------------------
680,000 Ohio State University, Weekly VRDNs, (Series
85b)/(National Westminster Bank LOC) 680,000
- ----------------------------------------------------------------------------
515,000 Ohio State University, Weekly VRDNs, (Series
86B)/(National Westminster Bank LOC) 515,000
- ----------------------------------------------------------------------------
TOTAL SHORT TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $3,445,315) 3,472,788
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $59,482,995) $61,554,936
- ----------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND June 30, 1996
(unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -----------------------------------------------------------------------
CORPORATE BONDS - 54.4%
- -----------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 4.2%
$1,000,000 ABN AMRO Bank Notes, 7.25%, 05/31/2005 $996,250
1,000,000 Banc One, 7.00%, 07/15/2005 978,750
250,000 BankAmerica Corp., 7.75%, 07/15/2002 257,813
250,000 Citicorp, 9.75%, 08/01/1999 270,625
500,000 Comerica Bank Notes, 9.75%, 05/01/1999 536,875
500,000 Comerica Bank, Detroit, 5.95%, 09/15/1997 497,665
1,000,000 Keycorp, 6.75%, 03/15/2006 952,500
1,000,000 Mellon Bank N.A., 6.50%, 08/01/2005 942,500
250,000 Security Pacific Corp., 9.75%, 05/15/1999 269,375
- -----------------------------------------------------------------------
5,702,353
- -----------------------------------------------------------------------
BASIC INDUSTRY - 1.6%
500,000 Air Products & Chemicals, 8.88%, 08/01/2001 543,750
250,000 Arco Chemical Co., 9.90%, 11/01/2000 278,125
250,000 Weyerhaeuser Co., 9.05%, 02/01/2003 275,313
1,000,000 Worthington Industries, 7.13%, 05/15/2006 991,250
- -----------------------------------------------------------------------
2,088,438
- -----------------------------------------------------------------------
CAPITAL GOODS - .2%
250,000 Caterpillar, Inc., 9.38%, 07/15/2000 271,875
- -----------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 14.2%
1,500,000 American Home Products, 6.50%, 10/15/2002 1,471,873
1,000,000 Bergen Brunswig Corp., 7.25%, 06/01/2005 992,500
1,000,000 Cardinal Health, 6.00%, 01/15/2006 915,000
1,000,000 Carnival Corp., 6.15%, 10/01/2003 937,500
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- -------------------------------------------------------------------------
CONSUMER GOODS & SERVICES (CONTINUED)
$1,000,000 Columbia/HCA Healthcare, 8.85%, 01/01/2007 $1,107,500
1,000,000 Darden Restaurants Inc., 6.38%, 02/01/2006 925,000
250,000 Dayton Hudson Corp., 10.00%, 12/01/2000 277,188
750,000 Grand Met Investment Corp., 7.13%, 09/15/2004 743,438
250,000 Great Atlantic & Pacific Tea, Inc., 9.13%,
01/15/1998 254,375
1,000,000 Harvard University, 8.13%, 04/15/2007 1,076,249
1,000,000 Hertz Corp., 7.00%, 07/15/2003 986,250
1,000,000 Limited, Inc., 7.80%, 05/15/2002 996,250
250,000 Limited, Inc., 9.13%, 02/01/2001 263,438
1,000,000 J.C. Penney & Co. Notes, 6.88%, 10/15/2015 921,250
750,000 May Dept. Stores Co., 9.88%, 06/15/2000 829,688
250,000 Nordstrom, Inc., 8.88%, 02/15/1998 259,063
500,000 Philip Morris Co. Inc., 7.50%, 03/15/1997 505,000
500,000 Philip Morris Co. Inc., 7.63%, 05/15/2002 510,625
1,000,000 Ralston Purina Notes, 9.25%, 10/15/2009 1,133,749
500,000 Reebok Int'l Ltd, 6.75%, 09/15/2005 476,250
500,000 Scripps Howard, Inc., 7.38%, 12/15/1998 508,125
1,000,000 Service Corp. Int'l., 8.38%, 12/15/2004 1,067,500
250,000 Super Value Stores, Inc., 8.88%, 06/15/1999 264,375
250,000 Universal Corp., 9.25%, 02/15/2001 272,188
1,500,000 V.F. Corp., 7.60%, 04/01/2004 1,500,000
- -------------------------------------------------------------------------
19,194,374
- -------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Portfolio of Investments
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- ------------------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 1.2%
$250,000 Alco Standard Corp., 8.88%, 04/15/2001 $268,438
500,000 Joseph E. Seagram & Sons, Inc., 7.00%, 04/15/2008 482,500
500,000 Watts Industries, 8.38%, 12/01/2003 531,874
250,000 Whirlpool Corp., 9.50%, 06/15/2000 272,813
- ------------------------------------------------------------------------------
1,555,625
- ------------------------------------------------------------------------------
ENERGY--OIL & GAS - .6%
500,000 Consolidated Natural Gas Co., 5.88%, 10/01/1998 493,750
250,000 Pennzoil Co., 9.63%, 11/15/1999 268,125
- ------------------------------------------------------------------------------
761,875
- ------------------------------------------------------------------------------
FINANCE - 8.7%
1,000,000 Abbey National Public Limited Company, 6.69%,
10/17/2005 960,000
1,000,000 Bear Stearns, 6.63%, 01/15/2004 955,000
750,000 Bell Atlantic Financial, 6.63%, 11/30/1997 753,975
750,000 BHP U.S. Finance Corp., 7.00%, 12/01/1997 755,625
1,000,000 Countrywide Funding Corp., 8.25%, 07/15/2002 1,046,250
1,000,000 Dean Witter Discover, 6.00%, 03/01/1998 993,750
500,000 Eaton Off Shore Ltd., 9.00%, 02/15/2001 538,750
1,000,000 Ford Motor Credit Corp., 7.75%, 03/15/2005 1,026,250
250,000 International Lease Finance Co., 6.50%, 07/15/1997 251,002
500,000 Kimco Realty, 6.50%, 10/01/2003 477,500
1,000,000 MBNA Corp. Notes, 6.88%, 06/01/2005 965,000
1,000,000 Salomon Brothers, 6.75%, 01/15/2006 921,250
1,300,000 Smurfit Capital, 6.75%, 11/20/2005 1,228,500
1,000,000 U.S. Life Notes, 6.38%, 06/15/2000 972,500
- ------------------------------------------------------------------------------
11,845,352
- ------------------------------------------------------------------------------
FOREIGN INDUSTRIAL - 3.7%
1,000,000 Canadian National Railroad, 7.00%, 03/15/2004 976,250
750,000 Hydro-Quebec, Canada, 7.38%, 02/01/2003 761,250
1,000,000 Hydro-Quebec, Canada, 9.75%, 01/15/2018 1,107,500
500,000 Northern Telecom, Ltd., 8.75%, 06/12/2001 538,125
1,000,000 Philips Electronics, 8.38%, 09/15/2006 1,055,000
615,000 Rhone Poulnec, 7.75%, 01/15/2002 630,375
- ------------------------------------------------------------------------------
5,068,500
- ------------------------------------------------------------------------------
FOREIGN SOVEREIGN - 5.7%
1,000,000 Barcelona City, Spain,, 8.13%, 02/15/2005 1,051,250
1,000,000 Gen De Catalunya, 6.38%, 12/15/2007 921,250
500,000 Province of Ontario, Canada, 5.70%, 10/01/1997 496,250
1,000,000 Province of Ontario, Canada, 6.00%, 02/21/2006 916,250
500,000 Province of Ontario, Canada, 6.13%, 06/28/2000 490,000
250,000 Province of Quebec, Canada, 8.80%, 04/15/2003 272,188
1,000,000 Province of Quebec, Canada,, 8.63%, 01/19/2005 1,077,500
1,000,000 Republic of Finland, 7.88%, 07/28/2004 1,050,000
1,550,000 Republic of Iceland, 6.13%, 02/01/2004 1,449,250
- ------------------------------------------------------------------------------
7,723,938
- ------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- ------------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 7.7%
$500,000 Baltimore Gas & Electric Co., 6.63%, 03/15/2008 $474,375
1,000,000 Big Rivers Electric, 9.50%, 02/15/2017 1,078,750
1,000,000 Cajun Electric Power, 9.52%, 03/15/2019 1,088,750
500,000 Commonwealth Edison, 9.38%, 02/15/2000 534,375
200,000 Houston Lighting & Power Co., 6.75%, 11/01/1997 200,250
815,000 Iowa Electric Power & Light, 8.63%, 05/15/2001 872,050
1,000,000 Minnesota Power & Light, 7.75%, 06/01/2007 1,010,000
1,000,000 Northwestern Public Services, 7.10%, 08/01/2005 985,000
750,000 Orange & Rockland Utilities, Inc., 6.50%,
10/15/1997 750,938
1,000,000 Pennsylvania Power & Light, 6.88%, 02/01/2003 987,500
1,000,000 Public Service Electric & Gas, 6.25%, 01/01/2007 912,500
1,000,000 Soyland Power Co-Op, Inc., 9.63%, 09/30/2011 1,066,250
500,000 Western Resources Inc., 7.25%, 07/01/1999 506,875
- ------------------------------------------------------------------------------
10,467,613
- ------------------------------------------------------------------------------
INSURANCE - 2.6%
1,000,000 Lincoln National Corp., 7.25%, 05/15/2005 986,250
1,000,000 London Insurance Grp., 6.88%, 09/15/2005 961,250
1,500,000 MBIA, Inc., 9.00%, 02/15/2001 1,616,250
- ------------------------------------------------------------------------------
3,563,750
- ------------------------------------------------------------------------------
TECHNOLOGY - 1.2%
500,000 International Business Machines, 6.38%, 06/15/2000 494,375
1,000,000 Texas Instruments Notes, 9.25%, 05/15/2003 1,116,250
- ------------------------------------------------------------------------------
1,610,625
- ------------------------------------------------------------------------------
TELEPHONE UTIL. & COMMUNICATION CO. - 2.6%
1,000,000 Comsat Corp., 8.95%, 05/15/2001 1,078,750
1,000,000 General Telephone of the Southeast, 7.63%,
07/01/2002 1,002,500
900,000 GTE Corp., 9.10%, 06/01/2003 981,000
500,000 Southwestern Bell Telephone Co., 6.63%, 04/01/2005 483,125
- ------------------------------------------------------------------------------
3,545,375
- ------------------------------------------------------------------------------
TRANSPORTATION - .2%
250,000 Union Pacific Corp., 9.63%, 12/15/2002 282,188
- ------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $73,536,377) 73,681,881
- ------------------------------------------------------------------------------
GOVERNMENT AGENCIES - 8.2%
3,000,000 Federal Home Loan Bank, 8.03%, 12/19/1997 3,083,760
750,000 Federal National Mortgage Association, 9.40%,
08/10/1998 794,235
1,866,536 GNMA Pool Number 345128, 6.50%, 01/15/2024 1,737,628
982,662 GNMA Pool Number 352982, 7.50%, 05/15/2024 968,536
1,855,571 GNMA Pool Number 372962, 7.00%, 03/15/2024 1,779,609
</TABLE>
14
<PAGE>
Portfolio of Investments
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- --------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- --------------------------------------------------------------------------
$ 998,029 GNMA Pool Number 373015, 8.00%, 06/15/2024 $ 1,006,762
1,633,120 GNMA Pool Number 391615, 8.50%, 09/15/2024 1,679,561
- --------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES
(IDENTIFIED COST $11,053,749) 11,050,091
- --------------------------------------------------------------------------
U.S. TREASURY SECURITIES - 34.1%
- --------------------------------------------------------------------------
2,000,000 United States Treasury Note, 6.88%, 03/31/2000 2,030,280
6,000,000 United States Treasury Note, 7.13%, 02/28/2000 6,137,280
8,000,000 United States Treasury Note, 7.25%, 05/15/2004 8,289,519
3,000,000 United States Treasury Note, 7.50%, 02/15/2005 3,155,040
1,000,000 United States Treasury Note, 7.50%, 05/15/2002 1,047,440
10,000,000 United States Treasury Note, 7.50%, 11/15/2001 10,439,898
2,500,000 United States Treasury Note, 7.88%, 08/15/2001 2,649,250
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
U.S. TREASURY SECURITIES (CONTINUED)
- ---------------------------------------------------------------------------
$ 8,000,000 United States Treasury Note, 8.00%, 05/15/2001 8,505,520
1,000,000 United States Treasury Note, 8.50%, 11/15/2000 1,077,070
500,000 United States Treasury Note, 8.75%, 08/15/2000 541,420
1,000,000 United States Treasury Bond, 8.75%, 08/15/2020 1,196,360
1,000,000 United States Treasury Bond, 9.38%, 02/15/2006 1,187,500
- ---------------------------------------------------------------------------
TOTAL U.S. TREASURY SECURITIES
(IDENTIFIED COST $44,201,762) 46,256,577
- ---------------------------------------------------------------------------
(E) COMMERCIAL PAPER - 1.8%
2,467 Prudential Funding Corp., 5.25%, 07/01/1996 (at
amortized cost) 2,467,992
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $131,259,880) $133,456,541
- ---------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
----------------------------
THE MONITOR MORTGAGE SECURITIES FUND June 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT (G) VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
LONG TERM OBLIGATIONS - 109.5%
- -----------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. - 24.2%
$3,741,875 Series 1319E, 7.00% 11/15/2004 $3,753,736
182,445 Series 220007, 8.75%, 8/1/2001 186,134
167,459 Series 380059, 9.50%, 10/1/2004 173,478
2,533,185 Series C80391, 7.00%, 3/1/2026 2,438,191
130,777 Series N90034, 9.00% 11/1/1998 133,423
2,370,607 Series D69575, 7.50%, 3/01/2026 2,339,505
731,549 REMIC, Inv. Flt., Series 15420B, 9.45%, 7/15/2022 424,276
707,275 REMIC, Inv. Flt., Series 1564SE, 8.36%, 8/15/2008 566,895
54,885 REMIC, Inv. Flt., Series 1041G, 14.52%, 2/15/2021 57,184
1,291,651 REMIC, Z-Bond, Series 1388L, 7.00%, 10/15/2007 1,156,919
- -----------------------------------------------------------------------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORP.
(IDENTIFIED COST $11,756,580) 11,229,741
- -----------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 55.5%
450,000 REMIC, Inv. Flt., Series 1993-175SD, 8.25%,
9/25/2008 302,054
1,000,000 REMIC, Inv. Flt., Series 1992-201SB, 9.70%,
10/25/2022 768,060
289,999 REMIC, Inv. Flt., Series 1993-85SA, 7.82%,
6/25/2008 195,358
2,265,106 REMIC, Flt., Series 1994-76FA, 6.24%, 04/25/2024 2,226,282
425,202 Series 250128, 7.50%, 09/01/09 427,460
2,498,206 Series 343212, 7.50%, 05/01/2026 2,463,856
4,890,812 Series 339836, 7.00%, 03/01/2026 4,702,810
1,460,131 Series 303653, 7.00%, 12/1/2025 1,404,004
2,310,434 Series 303161, 7.50%, 01/01/2002 2,324,158
380,273 Series 303459, 8.00%, 7/1/2002 383,600
288,610 Series 050279, 8.50%, 2/1/05 298,711
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT (G) VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
$1,514,104 Series 250554, 6.50%, 05/01/2011 $1,463,957
4,062,940 Series 250551, 7.00%, 05/01/2026 3,906,761
5,000,000 7.00%, 02/09/2011 4,931,250(f)
- -------------------------------------------------------------------------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $26,570,639) 25,798,321
- -------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 20.8%
1,500,000 9.00%, 07/26/2026 1,579,922
950,982 Series 780295, 7.00%, 12/15/2010 942,661
716,513 Series 266868, 7.00%, 06/15/2008 712,708
595,130 Series 326202, 7.00%, 01/15/2008 591,970
687,286 Series 344961, 7.00%, 06/15/2008 683,636
760,744 Series 348112, 7.00%, 06/15/2008 756,704
661,654 Series 349379, 7.00%, 05/15/2008 658,141
68,199 Series 305936, 8.50%, 04/15/2006 70,906
457,666 Series 306058, 8.50%, 06/15/2006 475,688
95,486 Series 328651, 8.50%, 05/15/2007 99,246
2,988,356 GNMA II, 9.00%, 7/20/2025 3,110,700
- -------------------------------------------------------------------------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $9,834,603) 9,682,282
- -------------------------------------------------------------------------------
U.S. TREASURY NOTE--9.0%
4,000,000 8.0% 8/15/99 (identified cost $4,021,705) 4,183,240
- -------------------------------------------------------------------------------
TOTAL LONG TERM OBLIGATIONS
(IDENTIFIED COST $52,183,527) 50,893,584
- -------------------------------------------------------------------------------
(B) REPURCHASE AGREEMENT--3.8%
- -------------------------------------------------------------------------------
1,784,000 Goldman Sachs Co. Inc. 5.55%, dated 6/28/96, due
07/01/96 (at amortized cost) 1,784,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $53,967,527) $52,677,584
- -------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
15
<PAGE>
Portfolio of Investments
--------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME June 30, 1996
SECURITIES FUND (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
CORPORATE BONDS - 67.1%
- ---------------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 12.0%
$1,000,000 Bank of Montreal, 10.00%, 09/01/1998 $1,065,000
1,000,000 Bankers Trust, 9.20%, 07/15/1999 1,061,250
1,000,000 Barnett Banks, 8.50%, 03/01/1999 1,042,500
1,100,000 Chase Manhattan Corp., 10.00%, 06/15/1999 1,194,874
1,000,000 Chemical NY Corp., 9.75%, 06/15/1999 1,080,000
1,000,000 Citicorp, 9.00%, 04/15/1999 1,057,500
500,000 Comerica Bank Notes, 9.75%, 05/01/1999 536,875
1,000,000 Comerica Bank, Detroit, 5.95%, 09/15/1997 995,330
1,000,000 Dominion Bankshares, 9.63%, 06/15/1999 1,072,500
1,000,000 First Chicago, 9.88%, 07/01/1999 1,083,750
500,000 First Fidelity Bancorp, 9.63%, 08/15/1999 539,375
1,000,000 First Security Bank Utah, 7.88%, 10/15/1999 1,028,750
1,000,000 Golden West Financial, 9.15%, 05/23/1998 1,047,500
500,000 Key Corp., 8.40%, 04/01/1999 520,000
1,000,000 Mellon Corp., 6.30%, 06/01/2000 982,500
500,000 Sovran Financial, 9.75%, 06/15/1999 538,750
- ---------------------------------------------------------------------------
14,846,454
- ---------------------------------------------------------------------------
BASIC INDUSTRY - 1.5%
250,000 Alcan Aluminum Ltd, 9.70%, 10/15/1996 252,500
500,000 duPont (E.I.) deNemours & Co., 8.65%, 12/01/1997 515,000
1,000,000 WMX Technologies Inc., 8.25%, 11/15/1999 1,047,500
- ---------------------------------------------------------------------------
1,815,000
- ---------------------------------------------------------------------------
CAPITAL GOODS - .4%
500,000 Baker Hughes Inc., 7.63%, 02/15/1999 508,750
- ---------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 9.8%
1,000,000 American Brands, 9.00%, 06/15/1999 1,061,250
1,000,000 American Home Products, 7.70%, 02/15/2000 1,028,750
1,000,000 Columbia Healthcare, 6.50%, 03/15/1999 996,250
1,400,000 Columbia Pictures Ent., 9.88%, 02/01/1998 1,457,750
1,000,000 Cox Communications Inc., 6.38%, 06/15/2000 981,250
1,000,000 Dayton Hudson, 7.50%, 03/01/1999 1,016,250
1,120,000 Dillard Dept. Stores Inc., 8.75%, 06/15/1998 1,164,800
250,000 Dillard Dept. Stores Inc., 9.50%, 01/15/1998 260,625
1,000,000 Pepsico Inc., 6.80%, 05/15/2000 1,002,500
500,000 Philip Morris Inc., 6.38%, 01/15/1998 500,000
1,000,000 Philip Morris Inc., 7.38%, 02/15/1999 1,012,500
500,000 Scripps Howard Inc., 7.38%, 12/15/1998 508,125
1,000,000 Super Value Stores Inc., 8.88%, 06/15/1999 1,057,500
- ---------------------------------------------------------------------------
12,047,550
- ---------------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 1.1%
1,250,000 Loews Corp., 8.50%, 04/15/1998 1,290,625
- ---------------------------------------------------------------------------
ENERGY-OIL & GAS - 2.9%
1,000,000 Burlington Resources, 7.15%, 05/01/1999 1,013,750
1,000,000 Elf Aquitaine, 7.75%, 05/01/1999 1,028,750
1,500,000 Texaco Inc., 9.00%, 11/15/1997 1,552,830
- ---------------------------------------------------------------------------
3,595,330
- ---------------------------------------------------------------------------
FINANCE - 16.7%
1,000,000 American Express Credit, 7.38%, 02/01/1999 1,018,750
1,000,000 American General Finance, 6.88%, 07/01/1999 1,005,000
1,050,000 Aristar Inc., 7.88%, 02/15/1999 1,080,188
1,000,000 Associates Corp. N.A., 8.70%, 01/01/1997 1,014,120
1,000,000 Avco Financial Services Inc., 5.88%, 10/15/1997 995,570
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- -------------------------------------------------------------------------------
$1,200,000 Bear Stearns Co., 7.63%, 09/15/1999 $1,225,500
1,250,000 Bell Atlantic Financial, 6.63%, 11/30/1997 1,256,625
1,250,000 BHP U.S. Finance Corp., 7.00%, 12/01/1997 1,259,374
1,000,000 Chrysler Financial Corp., 13.25%, 10/15/1999 1,188,750
500,000 CNA Financial, 8.88%, 03/01/1998 518,125
1,000,000 Dean Witter Discover, 6.00%, 03/01/1998 993,750
1,000,000 Ford Motor Credit Co., 7.75%, 10/01/1999 1,027,500
1,000,000 General Motors Acceptance Corp., 7.00%, 03/01/2000 1,006,250
1,000,000 Goldman Sachs, 6.88%, 09/15/1999 1,001,250
1,000,000 Household International, 6.00%, 03/15/1999 982,500
1,250,000 IBM Credit Corp., 6.38%, 11/01/1997 1,251,562
1,000,000 International Lease Finance Corp., 5.75%, 07/01/1998 986,250
1,000,000 Lehman Bros Inc., 7.63%, 08/01/1998 1,017,500
500,000 Morgan Stanley Group, 7.88%, 12/15/1998 513,750
1,000,000 Salomon Inc., 9.38%, 04/15/1998 1,045,000
250,000 Transamerica Finance Corp., 6.75%, 01/15/1998 250,625
- -------------------------------------------------------------------------------
20,637,939
- -------------------------------------------------------------------------------
FOREIGN INDUSTRIAL - 2.2%
1,600,000 Pacific Dunlap Notes, 9.75%, 12/15/2000 1,772,000
1,000,000 Rhone Poulenc, 6.75%, 10/15/1999 996,250
- -------------------------------------------------------------------------------
2,768,250
- -------------------------------------------------------------------------------
FOREIGN SOVEREIGN - 4.8%
1,000,000 Korea Development Bank, 9.25%, 06/15/1998 1,050,000
1,000,000 Montreal Urban Commission, 9.13%, 03/15/2001 1,078,750
1,000,000 Province of Ontario Canada, 5.70%, 10/01/1997 992,500
1,500,000 Province of Quebec, 9.38%, 04/01/1999 1,603,125
1,250,000 Republic of Finland, 6.75%, 11/24/1997 1,259,375
- -------------------------------------------------------------------------------
5,983,750
- -------------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 5.3%
500,000 Empire District Electric Co., 5.70%, 05/01/1998 493,125
500,000 Houston Lighting & Power Co., 6.75%, 11/01/1997 500,625
1,000,000 Iowa Electric Light & Power, 7.60%, 03/01/1999 1,022,500
1,000,000 National Rural Utilities, 8.50%, 02/15/1998 1,030,000
1,250,000 Orange & Rockland Utilities Inc., 6.50%, 10/15/1997 1,251,563
1,000,000 Southern California Edison, 7.50%, 04/15/1999 1,021,250
1,250,000 Southern California Gas Co., 6.50%, 12/15/1997 1,253,125
- -------------------------------------------------------------------------------
6,572,188
- -------------------------------------------------------------------------------
INSURANCE - 4.9%
1,000,000 Allstate Corp., 5.88%, 06/15/1998 988,750
1,000,000 Cigna Corp., 8.00%, 09/01/1996 1,003,100
1,000,000 Continential Corp., 8.25%, 04/15/1999 1,035,000
1,000,000 Torchmark Corp., 9.63%, 05/01/1998 1,050,000
1,000,000 Travelers Inc., 7.75%, 06/15/1999 1,027,500
1,000,000 U.S. Life Notes, 6.38%, 06/15/2000 972,500
- -------------------------------------------------------------------------------
6,076,850
- -------------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATIONS COMPANIES - 2.7%
1,250,000 Cincinnati Bell Inc., 6.70%, 12/15/1997 1,254,688
1,000,000 GTE Corp., 8.85%, 03/01/1998 1,037,500
</TABLE>
16
<PAGE>
Portfolio of Investments
--------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME (Continued)
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- ---------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION COMPANIES (CONTINUED)
- ---------------------------------------------------------------------------
$1,000,000 MCI Communications Corp., 6.25%, 03/23/1999 $991,250
- ---------------------------------------------------------------------------
3,283,438
- ---------------------------------------------------------------------------
TRANSPORTATION - 2.8%
765,000 Conrail Inc., 9.75%, 06/01/2000 840,544
1,500,000 CSX Corp., 9.50%, 08/01/2000 1,644,375
1,000,000 Union Pacific Corp., 6.25%, 03/15/1999 990,000
- ---------------------------------------------------------------------------
3,474,919
- ---------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $82,390,132) 82,901,043
- ---------------------------------------------------------------------------
U.S. TREASURY NOTES - 28.6%
- ---------------------------------------------------------------------------
1,500,000 United States Treasury Notes, 5.625%, 02/28/2001 1,449,795
10,000,000 United States Treasury Notes, 6.250%, 08/31/2000 9,927,800
2,500,000 United States Treasury Notes, 6.500%, 05/31/2001 2,500,324
- ---------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
U.S. TREASURY NOTES (CONTINUED)
- ---------------------------------------------------------------------------
$2,000,000 United States Treasury Notes, 6.875%, 02/28/1997 $2,015,660
1,500,000 United States Treasury Notes, 6.875%, 03/31/2000 1,522,710
12,000,000 United States Treasury Notes, 7.125%, 02/29/2000 12,274,560
4,000,000 United States Treasury Notes, 7.250%, 02/15/1998 4,072,720
1,500,000 United States Treasury Notes, 7.750%, 01/31/2000 1,563,810
- ---------------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES (IDENTIFIED COST $35,139,762) 35,327,379
- ---------------------------------------------------------------------------
(E) COMMERCIAL PAPER - 2.6%
- ---------------------------------------------------------------------------
3,223,130 Prudential Funding Corp., 5.25%, 07/01/1996 (at
amortized cost) 3,223,130
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $120,753,024) $121,451,552
- ---------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
Notes to Portfolios of Investments
*Non-income producing securities.
(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)The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(e)Each issue shows the coupon rate.
(f)Indicates securities subject to dollar roll transactions with a total market
value of $4,931,250.
(g)Securities with notional or nominal principal amounts show the current rate
which may vary from the stated rate.
The following abbreviations are used in the portfolios:
AMBAC--American Municipal Bond Assurance Corporation
ARM--Adjustable Rate Mortgage
BANs--Bond Anticipation Notes
BIG--Bond Investors Guaranty
CL--Class
ETM--Escrowed to Maturit
y 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 June 30, 1996.
<TABLE>
<CAPTION>
COST OF
INVESTMENTS NET UNREALIZED GROSS GROSS
FOR FEDERAL TAX APPRECIATION/ UNREALIZED UNREALIZED TOTAL
MONITOR FUNDS PURPOSES (DEPRECIATION) APPRECIATION DEPRECIATION NET ASSETS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $451,128,490** -- -- -- $449,321,465
Ohio Municipal Money
Market Fund 114,605,483** -- -- -- 115,045,022
U.S. Treasury Money
Market Fund 515,835,397** -- -- -- 514,161,593
Growth Fund 132,611,443 41,783,962 42,928,105 (1,144,143) 174,420,040
Income Equity Fund 118,791,014 41,099,259 41,413,385 (314,126) 160,591,549
Ohio Tax-Free Fund 59,482,995 2,071,941 2,190,616 (118,675) 61,560,117
Fixed Income Securities
Fund 131,259,880 2,196,661 3,721,815 (1,525,154) 135,550,397
Mortgage Securities Fund 53,967,527 (1,289,943) 252,592 (1,542,535) 46,471,634
Short/Intermediate Fixed
Income Securities Fund 120,753,024 698,528 1,253,372 (554,844) 123,566,219
- ------------------------------------------------------------------------------------------------
</TABLE>
**At amortized cost.
(See Notes which are an integral part of the Financial Statements)
17
<PAGE>
Statements of Assets & Liabilities
JUNE 30, 1996 (UNAUDITED)
(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 $408,603 $114,605 $251,633
Investments in repurchase 42,525 -- 264,202
agreements
Cash -- 1 --
Dividends and interest receivable 138 781 165
Receivable for investments sold -- -- --
Receivable for shares sold -- -- --
- ------------------------------------------------------------------------------
Total assets 451,266 115,387 516,000
- ------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased -- -- --
Payable for shares redeemed -- -- --
Payable for dollar roll -- -- --
transactions
Income distribution payable 1,783 288 1,732
Accrued expenses 162 41 65
Payable to Adviser -- 13 41
- ------------------------------------------------------------------------------
Total liabilities 1,945 342 1,838
- ------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 449,321 115,057 514,162
Net unrealized appreciation -- -- --
(depreciation) of investments
Accumulated net realized gain -- (12) --
(loss) on investments
Distributions in excess of net -- -- --
investment income
Undistributed net investment -- -- --
income
- ------------------------------------------------------------------------------
Total Net Assets $449,321 $115,045 $514,162
- ------------------------------------------------------------------------------
NET ASSETS:
Trust Shares $353,683 $ 53,954 $475,826
Investment Shares $ 95,638 $ 61,091 $ 38,336
- ------------------------------------------------------------------------------
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 353,683 53,961 475,826
Investment Shares 95,638 61,096 38,336
- ------------------------------------------------------------------------------
Total shares outstanding ($0.001 449,321 115,057 514,162
par value)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Investments, at identified cost $451,128 $114,605 $515,835
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
*Computation of Offering price: 100/96 of net asset value.
**Computation of Offering price: 100/98 of net asset value.
Amounts designated as "--" are either $0 or have been rounded to $0.
(See Notes which are an integral part of the Financial Statements)
Statements of Operations
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
(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 $11,365 $1,947 $9,481
Dividends -- -- --
- ---------------------------------------------------------------------------------
Total income 11,365 1,947 9,481
- ---------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 630 166 360
Directors'/Trustees' fees 11 1 7
Administrative personnel and 217 72 183
services fee
Custodian and recordkeeping fees and 118 31 101
expenses
Transfer and dividend disbursing 25 11 19
agent fees and expenses
Share registration costs 33 5 34
Auditing fees 29 4 19
Legal fees 13 2 9
Printing and postage 25 3 17
Insurance premiums 18 3 12
Distribution services fees 46 29 51
Miscellaneous -- -- --
- ---------------------------------------------------------------------------------
Total expenses 1,165 327 812
- ---------------------------------------------------------------------------------
Deduct--
Waiver of investment advisory fees -- (66) --
Waiver of distribution services fees -- -- (30)
- ---------------------------------------------------------------------------------
NET EXPENSES 1,165 261 782
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME 10,200 1,686 8,699
- ---------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) on -- -- --
investments
Net change in unrealized -- -- --
appreciation (depreciation) of
investments
- ---------------------------------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS -- -- --
- ---------------------------------------------------------------------------------
CHANGE IN NET ASSETS RESULTING FROM $10,200 $1,686 $8,699
OPERATIONS
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
+Includes dollar roll income of $232.
$0 or have been rounded to $0.
(See Notes which are an integral part of the Financial Statements)
18
<PAGE>
<TABLE>
<CAPTION>
THE MONITOR THE MONITOR
THE MONITOR THE MONITOR FIXED THE MONITOR SHORT/INTERMEDIATE
THE MONITOR INCOME OHIO INCOME MORTGAGE FIXED INCOME
GROWTH EQUITY TAX-FREE SECURITIES SECURITIES SECURITIES
FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$174,395 $159,890 $61,555 $133,457 $ 50,894 $121,452
-- -- -- -- 1,784 --
-- -- 93 -- -- --
198 819 480 2,225 363 2,208
-- -- -- -- 9 --
-- -- -- -- -- --
- ----------------------------------------------------------------------------------------
174,593 160,709 62,128 135,682 53,050 123,660
- ----------------------------------------------------------------------------------------
-- -- 485 -- 1,580 --
-- -- 12 -- 11 --
-- -- -- -- 4,958 --
-- -- -- -- -- --
159 103 67 121 19 84
14 14 4 11 10 10
- ----------------------------------------------------------------------------------------
173 117 568 132 6,578 94
- ----------------------------------------------------------------------------------------
126,483 115,904 59,457 134,801 71,130 123,143
41,784 41,099 2,072 2,196 (1,290) 699
6,191 3,423 (14) (1,415) (23,058) (351)
(38) -- -- (32) (310) --
-- 166 45 -- -- 75
- ----------------------------------------------------------------------------------------
$174,420 $160,592 $61,560 $135,550 $ 46,472 $123,566
- ----------------------------------------------------------------------------------------
$170,256 $160,592 $59,465 $133,524 $ 44,677 $123,566
$ 4,164 -- $ 2,095 $ 2,026 $ 1,795 --
- ----------------------------------------------------------------------------------------
$33.38 $28.75 $21.30 $20.65 $7.90 $19.83
$33.38 -- $21.30 $20.66 $7.92 --
- ----------------------------------------------------------------------------------------
$33.38 $28.75 $21.30 $20.65 $7.90 $19.83
$34.77* -- $21.73** $21.08** $8.08** --
- ----------------------------------------------------------------------------------------
5,099 5,586 2,792 6,465 5,658 6,230
126 -- 98 98 227 --
- ----------------------------------------------------------------------------------------
5,225 5,586 2,890 6,563 5,885 6,230
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
$132,611 $118,791 $59,483 $131,260 $ 53,968 $120,753
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
THE MONITOR THE MONITOR
THE MONITOR THE MONITOR FIXED THE MONITOR SHORT/INTERMEDIATE
INCOME OHIO INCOME MORTGAGE FIXED INCOME
THE MONITOR EQUITY TAX-FREE SECURITIES SECURITIES SECURITIES
GROWTH FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 321 $ 866 $ 1,691 $ 4,878 $ 1,934+ $ 4,107
1,377 2,413 -- -- -- --
- --------------------------------------------------------------------------------------
1,698 3,279 1,691 4,878 1,934 4,107
- --------------------------------------------------------------------------------------
497 454 153 343 121 313
4 3 1 4 -- 3
92 75 35 77 39 61
46 42 17 38 61 35
21 11 16 24 8 16
17 13 7 9 3 9
10 7 3 9 1 9
5 3 1 4 -- 4
8 6 2 8 1 8
6 5 2 6 1 5
5 -- 3 3 5 --
-- -- -- -- 5 --
- --------------------------------------------------------------------------------------
711 619 240 525 245 463
- --------------------------------------------------------------------------------------
-- -- -- -- (94) --
-- -- -- -- (2) --
- --------------------------------------------------------------------------------------
711 619 240 525 149 463
- --------------------------------------------------------------------------------------
987 2,660 1,451 4,353 1,785 3,644
- --------------------------------------------------------------------------------------
6,191 3,390 (4) 806 (1,175) 106
6,637 4,528 (1,358) (7,964) (110) (3,162)
- --------------------------------------------------------------------------------------
12,828 7,918 (1,362) (7,158) (1,285) (3,056)
- --------------------------------------------------------------------------------------
$13,815 $10,578 $ 89 $(2,805) $ 500 $ 588
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
Statements of Changes In Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR
MONITOR OHIO U.S. TREASURY
MONITOR MONEY MUNICIPAL MONEY MONEY MARKET MONITOR GROWTH
MARKET FUND MARKET FUND FUND FUND
SIX SIX SIX SIX
MONTHS MONTHS MONTHS MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1996 DEC. 31, 1996 DEC. 31, 1996 DEC. 31, 1996 DEC. 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS OPERATIONS--
Net investment income $ 10,200 $ 19,508 $ 1,686 $ 3,288 $ 8,699 $ 17,495 $ 987 $ 1,757
Net realized gain (loss)
on investment
transactions -- -- -- -- -- -- 6,191 13,943
Change in net unrealized
appreciation
(depreciation) of
investments -- -- -- -- -- -- 6,637 19,016
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 10,200 19,508 1,686 3,288 8,699 17,495 13,815 34,716
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM--
Net investment income:
Trust Shares (7,976) (15,778) (800) (1,796) (7,686) (15,870) (968) (1,727)
Investment Shares (2,224) (3,730) (886) (1,492) (1,013) (1,625) (19) (39)
Net realized gain on
investments:
Trust Shares -- -- -- -- -- -- -- (13,595)
Investment Shares -- -- -- -- -- -- -- (348)
DISTRIBUTIONS IN EXCESS OF--
Net investment income:
Trust Shares -- -- -- -- -- -- (55) --
Investment Shares -- -- -- -- -- -- (2) --
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets
from distributions
to shareholders (10,200) (19,508) (1,686) (3,288) (8,699) (17,495) (1,044) (15,709)
- ---------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL)
TRANSACTIONS--
Proceeds from sale of
shares 564,723 768,319 102,451 205,658 602,627 908,100 21,211 25,574
Net asset value of
shares issued to
shareholders in payment
of dividends declared 1,819 2,744 164 391 660 1,044 351 10,058
Cost of shares redeemed (505,273) (712,445) (99,578) (170,787) (405,240) (869,957) (7,111) (14,116)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets
from Fund share
transactions 61,269 58,618 3,037 35,262 198,047 39,187 14,451 21,516
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets 61,269 58,618 3,037 35,262 198,047 39,187 27,222 40,523
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 388,052 329,434 112,020 76,758 316,115 276,928 147,198 106,675
- ---------------------------------------------------------------------------------------------------------------------
End of period $449,321 $388,052 $115,057 $112,020 $514,162 $316,115 $174,420 $147,198
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income
included in net assets
at end of period -- -- -- -- -- -- -- $ 19
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
(See Notes which are an integral part of the Financial Statements)
20
<PAGE>
<TABLE>
<CAPTION>
MONITOR SHORT/
MONITOR FIXED INTERMEDIATE FIXED
MONITOR INCOME MONITOR OHIO INCOME SECURITIES MONITOR MORTGAGE INCOME SECURITIES
EQUITY FUND TAX-FREE FUND FUND SECURITIES FUND FUND
SIX SIX SIX SIX SIX
MONTHS MONTHS MONTHS MONTHS MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1996 DEC. 31, 1996 DEC. 31, 1996 DEC. 31, 1996 DEC. 31, 1996 DEC. 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 2,660 $ 4,900 $ 1,451 $ 2,905 $ 4,353 $ 8,610 $ 1,785 $ 4,224 $ 3,644 $ 7,822
3,390 323 (4) (10) 806 (420) (1,175) (10,894) 106 (257)
4,528 27,588 (1,358) 3,665 (7,964) 13,787 110 22,343 (3,162) 8,241
- ---------------------------------------------------------------------------------------------------------------------
10,578 32,811 89 6,560 (2,805) 21,977 500 15,673 588 15,806
- ---------------------------------------------------------------------------------------------------------------------
(2,519) (5,021) (1,391) (2,802) (4,290) (8,491) (1,669) (4,153) (3,645) (7,803)
-- -- (48) (101) (64) (126) (64) (157) -- --
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
-- -- -- -- (122) -- -- (348) (59) --
-- -- -- -- (2) -- -- (14) -- --
- ---------------------------------------------------------------------------------------------------------------------
(2,519) (5,021) (1,439) (2,903) (4,478) (8,617) (1,733) (4,672) (3,704) (7,803)
- ---------------------------------------------------------------------------------------------------------------------
16,254 11,621 5,155 10,263 8,814 21,336 274 1,086 8,194 20,923
839 1,669 118 204 1,767 3,426 163 552 1,584 3,294
(6,452) (14,587) (4,395) (10,868) (11,347) (15,598) (7,407) (16,387) (17,047) (23,381)
- ---------------------------------------------------------------------------------------------------------------------
10,641 (1,297) 878 (401) (766) 9,164 (6,970) (14,749) (7,269) 836
- ---------------------------------------------------------------------------------------------------------------------
18,700 26,493 (472) 3,256 (8,049) 22,524 (8,203) (3,748) (10,385) 8,839
- ---------------------------------------------------------------------------------------------------------------------
141,892 115,399 62,032 58,776 143,599 121,075 54,675 58,423 133,951 125,112
- ---------------------------------------------------------------------------------------------------------------------
$160,592 $141,892 $61,560 $62,032 $135,550 $143,599 $46,472 $54,675 $123,566 $133,951
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
$ 166 $ 24 $ 45 $ 34 -- $ 92 -- -- $ 75 $ 135
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
Statement of Cash Flows
SIX MONTH PERIOD ENDED JUNE 30, 1996 (UNAUDITED)
(All numbers in thousands)
<TABLE>
<CAPTION>
THE
MONITOR
MORTGAGE
SECURITIES
FUND
- -----------------------------------------------------------------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Investment income received $ 2,094
Payment of operating expenses (160)
Proceeds from sales and maturities of investments 52,309
Purchases of investments (40,026)
Net purchases of short-term investments (186)
- -----------------------------------------------------------------
Cash provided by operating activities 14,031
- -----------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds used in Fund share activity (7,169)
Decrease on payable for dollar roll transactions (5,292)
Distributions paid (1,571)
- -----------------------------------------------------------------
Cash used by financing activities (14,032)
- -----------------------------------------------------------------
Net change in cash (1)
Cash at beginning of period 1
- -----------------------------------------------------------------
Cash at end of period 0
- -----------------------------------------------------------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM
OPERATIONS TO CASH PROVIDED BY OPERATING ACTIVITIES:
Net increase in net assets resulting from operations 500
Net decrease in investments 11,768
Decrease in interest receivable 160
Decrease in receivable for investments sold 34
Increase in deferred expenses (17)
Increase in payable for investments purchased 1,580
Increase in accrued expenses 6
- -----------------------------------------------------------------
Cash provided by operating activities $14,031
- -----------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
22
<PAGE>
[This Page Intentionally Left Blank]
23
<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(G)
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR MONEY
MARKET FUND
1987(b) $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%
1996(a) $1.00 0.02 (0.02) $1.00 2.45%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
1987(c) $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%
1996(a) $1.00 0.02 (0.02) $1.00 1.56%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1989(d) $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%
1996(a) $1.00 0.02 (0.02) $1.00 2.44%
INVESTMENT SHARES
THE MONITOR MONEY
MARKET FUND
1991(e) $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%
1996(a) $1.00 0.02 (0.02) $1.00 2.40%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
1991(e) $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%
1996(a) $1.00 0.02 (0.02) $1.00 1.51%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1993(f) $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%
1996(a) $1.00 0.02 (0.02) $1.00 2.38%
------------------------------------------------------------------------
</TABLE>
(a)Six months ended June 30, 1996 (unaudited).
(b)Reflects operations for the period from June 11, 1987 (date of initial
public investment) to December 31, 1987.
(c)Reflects operations for the period from June 10, 1987 (date of initial
public investment) to December 31, 1987.
(d)Reflects operations for the period from October 2, 1989 (date of initial
public investment) to December 31, 1989.
(e)Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
(f)Reflects operations for the period from October 19, 1993 (date of initial
public investment) to December 31, 1993.
(g)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(h)Computed on an annualized basis.
(i)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)
24
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
--------------------------------------------------------------
NET EXPENSE NET ASSETS,
INVESTMENT WAIVER/REDUCTION/ END OF PERIOD
EXPENSES INCOME REIMBURSEMENT(I) (000 OMITTED)
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.49%(h) 6.76%(h) -- $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
0.53%(h) 4.88%(h) -- $353,683
0.50%(h) 4.33%(h) -- $ 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
0.42%(h) 3.10%(h) 0.12%(h) $ 53,961
0.38%(h) 7.58%(h) 0.05%(h) $ 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
0.43%(h) 4.85%(h) -- $475,826
0.60%(h) 5.08%(h) -- $ 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
0.63%(h) 4.78%(h) -- $ 95,638
0.67%(h) 3.69%(h) 0.02%(h) $ 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
0.52%(h) 3.00%(h) 0.12%(h) $ 61,096
0.50%(h) 2.65%(h) 0.16%(h) $ 948
0.52% 3.66% 0.17% $ 20,390
0.53% 5.28% 0.18% $ 38,973
0.53%(h) 4.75%(h) 0.15%(h) $ 38,336
------------------------------------------------------------------------------------------
</TABLE>
25
<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(D)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR GROWTH FUND
1989(b) $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) --
1996(a) $30.81 0.19 2.58 2.77 (0.20) -- --
THE MONITOR INCOME EQUITY FUND
1989(b) $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) -- --
1996(a) $27.25 0.49 1.47 1.96 (0.46) -- --
INVESTMENT SHARES
THE MONITOR GROWTH FUND
1991(c) $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) --
1996(a) $30.81 0.15 2.59 2.74 (0.17) -- --
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Six months ended June 30, 1996 (unaudited).
(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 May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
(d) 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.
(e) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(f) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(g) Computed on an annualized basis.
(h) Average commission rate paid per share for security purchases and sales
during the period. Presentation of the rate is only required for fiscal
years beginning after September 1, 1995.
(See Notes which are an integral part of the Financial Statements)
26
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
NET ASSET ----------------------------------------
VALUE, NET EXPENSE NET ASSETS, PORTFOLIO AVERAGE
TOTAL END OF TOTAL INVESTMENT WAIVER/REDUCTION/ END OF PERIOD TURNOVER COMMISSION
DISTRIBUTIONS PERIOD RETURN(E) EXPENSES INCOME REIMBURSEMENT(F) (000 OMITTED) RATE RATE(H)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(0.31) $20.61 4.63% 0.95%(g) 3.24%(g) -- $ 24,245 14% n/a
(0.51) $20.13 0.16% 1.00% 2.58% -- $ 36,253 18% n/a
(0.62) $24.78 26.47% 0.93% 2.33% 0.02% $ 71,451 13% n/a
(0.94) $25.76 7.88% 0.91% 2.25% 0.01% $ 90,096 36% n/a
(0.49) $26.17 3.53% 0.84% 1.79% 0.04% $109,576 29% n/a
(0.47) $26.30 2.28% 0.88% 1.52% 0.04% $103,463 42% n/a
(3.54) $30.81 30.75% 0.86% 1.34% 0.05% $143,421 37% n/a
(0.20) $33.38 9.03% 0.86%(g) 1.20%(g) -- $170,256 15% $0.0498
(0.42) $20.25 3.39% 0.92%(g) 5.13%(g) -- $ 35,215 29% n/a
(0.88) $17.60 (8.86%) 0.94% 4.43% -- $ 45,468 66% n/a
(0.72) $20.90 23.20% 0.93% 3.67% -- $ 79,908 25% n/a
(0.74) $21.70 7.49% 0.85% 3.53% 0.01% $ 95,182 22% n/a
(0.80) $23.21 10.85% 0.82% 3.29% -- $135,618 10% n/a
(0.87) $21.93 (1.82%) 0.84% 3.91% -- $115,399 50% n/a
(0.96) $27.25 29.26% 0.82% 3.85% -- $141,892 17% n/a
(0.46) $28.75 7.27% 0.82%(g) 3.51%(g) -- $160,592 12% $0.0525
(0.41) $24.78 9.20% 1.24%(g) 1.88%(g) 0.02%(g) $ 1,078 13% n/a
(0.87) $25.76 7.57% 1.16% 2.03% 0.01% $ 3,637 36% n/a
(0.43) $26.16 3.25% 1.10% 1.54% 0.04% $ 3,961 29% n/a
(0.40) $26.31 2.08% 1.13% 1.27% 0.04% $ 3,212 42% n/a
(3.46) $30.81 30.40% 1.11% 1.08% 0.05% $ 3,777 37% n/a
(0.17) $33.38 8.90% 1.11%(g) 0.93%(g) -- $ 4,164 15% $0.0498
- --------------------------------------------------------------------------------------------------------------
</TABLE>
27
<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(F)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR OHIO TAX-FREE FUND
1988(b) $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) -- --
1996(a) $21.77 0.51 (0.48) 0.03 (0.50) -- --
THE MONITOR FIXED INCOME
SECURITIES FUND
1989(c) $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) -- --
1996(a) $21.78 0.69 (1.13) (0.44) (0.69) -- --
THE MONITOR MORTGAGE SECURITIES
FUND
1992(d)(j) $10.00 0.63 0.29 0.92 (0.61) (0.04) --
1993(j) $10.27 1.50 (0.28) 1.22 (1.46) (0.10) --
1994(j) $ 9.93 0.89 (3.19) (2.30) (0.93) -- (0.01)
1995(j) $ 6.69 0.55 1.46 2.01 (0.55) -- (0.06)
1996(a)(j) $ 8.09 0.30 (0.22) 0.08 (0.27) -- --
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME
SECURITIES FUND
1989(c) $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) -- --
1996(a) $20.35 0.58 (0.51) 0.07 (0.59) -- --
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
1991(e) $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) -- --
1996(a) $21.77 0.48 (0.47) 0.01 (0.48) -- --
THE MONITOR FIXED INCOME
SECURITIES FUND
1991(e) $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) -- --
1996(a) $21.78 0.67 (1.13) (0.46) (0.66) -- --
THE MONITOR MORTGAGE SECURITIES
FUND
1992(d)(j) $10.00 0.62 0.28 0.90 (0.60) (0.03) --
1993(j) $10.27 1.47 (0.27) 1.20 (1.43) (0.10) --
1994(j) $ 9.94 0.87 (3.19) (2.32) (0.91) -- (0.01)
1995(j) $ 6.70 0.55 1.46 2.01 (0.55) -- (0.04)
1996(a)(j) $ 8.12 0.27 (0.21) 0.06 (0.26) -- --
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Six months ended June 30, 1996 (unaudited).
(b) Reflects operations for the period from October 18, 1988 (date of initial
public investment) to December 31, 1988.
(c) Reflects operations for the period from July 3, 1989 (date of initial
public investment) to December 31, 1989.
(d) Reflects operations for the period from June 2, 1992 (date of initial
public investment) to December 31, 1992.
(e) Reflects operations for the period from May 1, 1991 (effective date of
Investment Shares) to December 31, 1991.
(f) 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.
(g) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(h) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(i) Computed on an annualized basis.
(j) 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)
28
<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(G) EXPENSES INCOME REIMBURSEMENT(H) OMITTED) RATE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.22) $19.95 0.59% 0.88%(i) 5.42%(i) -- $ 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%
(0.50) $21.30 0.16% 0.78%(i) 4.74%(i) -- $ 59,465 3%
(0.60) $20.02 3.14% 0.88%(i) 7.14%(i) -- $ 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%
(0.69) $20.65 (2.04%) 0.77%(i) 6.36%(i) -- $133,524 10%
(0.65) $10.27 9.12% 0.58%(i) 10.60%(i) 0.19%(i) $ 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%
(0.27) $ 7.90 1.06% 0.49%(i) 7.15%(i) 0.28%(i) $ 44,677 77%
(0.66) $20.11 3.91% 0.76%(i) 7.54%(i) -- $ 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%
(0.59) $19.83 0.37% 0.74%(i) 5.82%(i) -- $123,566 6%
(0.69) $21.05 5.78% 1.18%(i) 4.74%(i) -- $ 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%
(0.48) $21.30 0.05% 1.03%(i) 4.49%(i) -- $ 2,095 3%
(0.97) $21.58 12.12% 1.19%(i) 6.68%(i) -- $ 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%
(0.66) $20.66 (2.13%) 1.02%(i) 6.11%(i) -- $ 2,026 10%
(0.63) $10.27 8.97% 0.83%(i) 10.35%(i) 0.44%(i) $ 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%
(0.26) $ 7.92 0.85% 0.74%(i) 6.85%(i) 0.38%(i) $ 1,795 77%
- -----------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
Combined Notes to Financial Statements
JUNE 30, 1996 (UNAUDITED)
(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
30
<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. 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.
F. 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.
G. OTHER
Investment transactions are accounted for on the trade date.
H. 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
June 30, 1996.
31
<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
- --------------------------------------------------------------------------------------------------------------------
SIX SIX SIX
MONTHS MONTHS MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1996 DEC. 31, 1996 DEC. 31, 1996 DEC. 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
----------- -------- ----------- -------- ----------- --------
TRUST SHARES (AT $1.00 PER SHARE):
<S> <C> <C> <C> <C> <C> <C>
Shares sold 498,282 570,950 46,569 113,680 555,511 837,829
Shares issued to 17 33 1 2 11 21
shareholders in payment of distributions declared
Shares redeemed (441,380) (562,024) (49,160) (96,755) (356,838) (817,246)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust Share 56,919 8,959 (2,590) 16,927 198,684 20,604
transactions
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT SHARES (AT $1.00 PER SHARE):
Shares sold 66,441 197,369 55,882 91,978 47,116 70,271
Shares issued to shareholders in payment of 1,802 2,711 163 389 649 1,023
distributions declared
Shares redeemed (63,893) (150,421) (50,418) (74,032) (48,402) (52,711)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment Share 4,350 49,659 5,627 18,335 (637) 18,583
transactions
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions 61,269 58,618 3,037 35,262 198,047 39,187
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED): 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 649 20,961 581 16,254 229 4,939
Shares issued to shareholders in payment of 10 331 30 839 4 80
distributions declared
Shares redeemed (214) (6,915) (232) (6,452) (191) (4,121)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust Share 445 14,377 379 10,641 42 898
transactions
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 8 250 N/A N/A 10 216
Shares issued to shareholders in payment of 1 20 N/A N/A 2 38
distributions declared
Shares redeemed (6) (196) N/A N/A (13) (274)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment Share 3 74 N/A N/A (1) (20)
transactions
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions 448 14,451 379 10,641 41 878
- --------------------------------------------------------------------------------------------------------------------
<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 shareholders in payment of 316 9,679 68 1,669 6 122
distributions declared
Shares redeemed (438) (13,402) (601) (14,587) (481) (10,285)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Trust Share 721 21,486 (56) (1,297) (5) (119)
transactions
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 12 365 N/A N/A 10 219
Shares issued to shareholders in payment of 13 379 N/A N/A 4 82
distributions declared
Shares redeemed (24) (714) N/A N/A (27) (583)
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Investment Share 1 30 N/A N/A (13) (282)
transactions
- --------------------------------------------------------------------------------------------------------------------
Net change resulting from Fund share transactions 722 $21,516 (56) ($1,297) (18) ($401)
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1996 SHORT/
(UNAUDITED) : 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 411 $8,677 31 $248 409 $8,194
Shares issued to
shareholders in payment of
distributions declared 82 1,718 15 118 79 1,584
Shares redeemed (522) (11,123) (898) (7,171) (842) (17,047)
- -----------------------------------------------------------------------------------
Net change resulting from
Trust Share transactions (29) (728) (852) (6,805) (354) (7,269)
- -----------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 7 137 3 26 N/A N/A
Shares issued to
shareholders in payment of
distributions declared 2 49 6 45 N/A N/A
Shares redeemed (11) (224) (29) (236) N/A N/A
- -----------------------------------------------------------------------------------
Net change resulting from
Investment share
transactions (2) (38) (20) (165) N/A N/A
- -----------------------------------------------------------------------------------
Net change resulting from
Fund share transactions (31) ($766) (872) ($6,970) (354) ($7,269)
- -----------------------------------------------------------------------------------
<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
shareholders in payment of
distributions declared 159 3,324 59 428 166 3,294
Shares redeemed (726) (15,230) (1,786) (13,532) (1,176) (23,381)
- -----------------------------------------------------------------------------------
Net change resulting from
Trust Share transactions 444 9,147 (1,590) (12,096) 47 836
- -----------------------------------------------------------------------------------
<CAPTION>
INVESTMENT SHARES:
<S> <C> <C> <C> <C> <C> <C>
Shares sold 13 283 11 78 N/A N/A
Shares issued to
shareholders in payment of
distributions declared 5 102 17 124 N/A N/A
Shares redeemed (17) (368) (416) (2,855) N/A N/A
- -----------------------------------------------------------------------------------
Net change resulting from
Investment share
transactions 1 17 (388) (2,653) N/A N/A
- -----------------------------------------------------------------------------------
Net change resulting from
Fund share transactions 445 $9,164 (1,978) ($14,749) 47 $836
- -----------------------------------------------------------------------------------
</TABLE>
33
<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; U.S. Treasury Money Market: 0.20% of the
Fund's average daily net assets; Growth and Income Equity: 0.60% of each Fund's
average daily net assets; and Ohio Tax-Free, Fixed Income, Mortgage Securities
and Short/Intermediate Fixed Income: 0.50% of each 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--Commencing 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 SEI Financial Services Company ("SFS"), the Funds' principal
distributor, from the net assets of the respective Fund for fees SFS 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 SFS 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, SFS. 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-- Commencing January 11, 1996, SEI Financial Management
Corporation serves 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.
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 for an annual fee of $75,000. Huntington
receives an annual fee based on the level of each Fund's average daily net
assets, with the exception of the Mortgage Securities Fund.
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.
For the six month period ending June 30, 1996, certain Officers of the Trust
were Officers of SFM and SFS. Such Officers receive no compensation from the
Trust.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
six months ended June 30, 1996, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SECURITIES
---------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $38,045,313 $18,103,620 $2,352,964
Sales $23,071,443 $11,427,495 $1,676,843
- -----------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $13,471,549 $ -- $3,925,910
Sales $ 2,337,440 $ -- $7,250,000
- -----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
---------------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- ----------------------------------------------
<S> <C> <C> <C>
Purchases -- $7,113,125 --
Sales -- $5,098,438 --
- ----------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- ----------------------------------------------
<S> <C> <C> <C>
Purchases $ -- $1,579,922 $3,974,531
Sales $12,088,125 $ 609,307 $8,131,797
- ----------------------------------------------
</TABLE>
34
<PAGE>
(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
Ratings Group, 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.
35
<PAGE>
Trustees
David S. Schoedinger
John M. Shary
Richard Sisson, Ph.D
William R. Wise
Officers
David G. Lee
President and Chief Executive Officer
Stephen G. Meyer
Controller, Treasurer and Chief Financial Officer
Kathryn L. Stanton
Vice President and Secretary
Marc H. Cahn
Vice President and Assistant Secretary
Todd Cipperman
Vice President and Assistant Secretary
Joseph M. Lydon
Vice President and Assistant Secretary
Barbara A. Nugent
Vice President and Assistant Secretary
Sandra K. Orlow
Vice President and Assistant Secretary
Kevin P. Robins
Vice President and Assistant Secretary
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.
36
<PAGE>
SEI Financial Services Company
Distributor
609409107 609409602
609409875 609409842
609409305 609409701
609409867 609409404 609409826
609409503 609409834 609409776
609409768 609409800 609409784
609409883
1400022 (8/96)
