<PAGE>
(Art)
The Monitor Funds
Annual Report
to Shareholders
Money Market Funds
---------------------------------------------
Trust Shares and Investment Shares
. The Monitor Money Market Fund
. The Monitor Ohio Municipal Money
Market Fund
. The Monitor U.S. Treasury Money Market
Fund
Equity Funds
---------------------------------------------
Trust Shares and Investment Shares
. The Monitor Growth Fund
Trust Shares
. The Monitor Income Equity Fund
Income Funds
---------------------------------------------
Trust Shares and Investment Shares
. The Monitor Ohio Tax-Free Fund
. The Monitor Fixed Income Securities
Fund
. The Monitor Mortgage Securities Fund
Trust Shares
. The Monitor Short/Intermediate Fixed
Income Securities Fund
December 31, 1996
(ART)
<PAGE>
Message from the Investment Manager
Dear Shareholder,
I am pleased to present the December 31, 1996 Annual Report to Shareholders of
The Monitor Funds. It is important for us to share this financial information
as well as commentary which we believe is interesting and topical.
While the Dow Jones Industrial Average climbed 26% during 1996, it proved to be
only a mediocre year for bonds. The 30 year Treasury started the year yielding
5.95%. A cycle of easings was expected, but only one actually arrived in
January. The yield then rose to 7.2% by the middle of the year as surging
employment statistics and growth unnerved the market. Rising yields did,
however, cause the consumer pullback that stemmed growth in the third quarter.
Recent comments by Federal Reserve officials indicate that they believe the
economy will grow 2.0% to 2.5% this year and that inflation will remain
contained at 3%. Risks to these trends include the wealth impact on consumer
spending caused by recent stock market gains and strength in the housing
sector. High consumer debt burdens are cited as posing the greatest risk to the
continuation of the economy's expansion. The tight labor market and higher
energy prices also pose a risk to the favorable inflation outlook.
We urge you to take a moment and review the Management Discussion and Analysis
section of this report. We have included on these pages information concerning
each Fund's activity and performance. We have also reformatted the Management
Discussion and Analysis section so that all of the pertinent information
concerning a particular fund appears on one page. In implementing this change,
it is our hope that we are providing you with useful information in a more
concise format. Our continuing goal is to more effectively communicate with our
shareholders. It is important for us to provide you with the information that
you need to take control of your money and make those investment decisions
which can contribute to your personal financial goals. You will find the
complete financial statements for each of The Monitor Funds, including their
portfolios of investments, on the succeeding pages.
We are pleased to welcome our new shareholders. We strive to provide you with
solid investment management services. Thank you for your confidence in our
organization.
/s/ Norman A. Jacobs
Norman A. Jacobs
President and C.E.O.
The Huntington Trust Company, N.A.
Investment Manager
Columbus, Ohio
1
<PAGE>
- --------------------------------------------------------------------------------
Growth Fund As of 12/31/96
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
The Monitor Growth Fund is managed by a team of experienced investment
professionals. Each manager brings a unique perspective to the management of
this Fund. Phil Farrington, Vice President, is a graduate of Harvard University
and has over thirty years of investment management experience. He is part of
our equity management team. Jim Gibboney, Jr., Vice President, is a Chartered
Financial Analyst, and a graduate of The Ohio State University with an MBA from
Xavier University. Jim's primary equity concentrations are in the electric
utilities and chemical industries. Here are the managers' comments on The
Monitor Growth Fund:
"The total return of the Fund in 1996 was 16.72% versus 23% for the Standard
& Poor's Composite Price 500 Index ("S&P 500"). In an exuberant market
environment like that of 1996, our pragmatic approach towards individual stock
valuations led us to forgo commitments to certain momentum driven stocks which
went higher as the year played out. The five leaders in the S&P 500 return
(IBM, Microsoft, Coca Cola, GE and Intel) accounted for almost one quarter of
the price appreciation in the index. It is important to note that the S&P 500
is a market capitalization (or size) weighted index, and that those five stocks
accounted for a larger than average share of the total return of the Index.
Equally weighted, the S&P 500 returned about 13% for 1996--returns which were
more in line with the performance of the Fund. The market action last year was
enormously positive, but quite narrow when one looks at the composition of
those returns.
The Monitor Growth Fund has invested in stocks of U.S. companies which are
growing rapidly abroad. One advantage of this approach is that the product
being touted has, in many cases, proven its efficacy in the United States.
Management simply has to apply what has already been learned here to overseas
markets. McDonald's, Wrigley, Colgate Palmolive, Pepsi and Mattel are shining
examples of this strategy.
As we look forward, The Monitor Growth Fund will continue to emphasize those
companies with superior earnings and dividend records. If the 1997 market
environment remains favorable, there may be an opportunity for the Fund to
branch out from existing sectors of over-concentration into more growth-
oriented sectors including medical technology and communications."
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/96
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES
<S> <C> <C>
QTR 5.11% 5.06%
1-Year Annualized 16.72% 16.43%
3-Year Annualized 16.00% 15.73%
5-Year Annualized 11.76% 11.48%
Annualized Since Incep. 7/3/89 5/1/91
11.82% 11.78%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $180.0
Net Asset Value (Trust Shares). $33.97
Number of Issues............... 51
Cash Reserves (%).............. 1%
</TABLE>
FIVE LARGEST EQUITY HOLDINGS
<TABLE>
<S> <C>
Schlumberger 3.6%
Colgate-Palmolive 3.6%
Pfizer 3.5%
Sigma-Aldrich 3.5%
Anadarko Petroleum 3.4%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR GROWTH FUND--INVESTMENT AND TRUST
SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund--Investment Shares from May 1, 1991 (commencement of operations) to
December 31, 1996, compared to the Standard & Poor's Composite Price 500 Index
("S&P 500")+, and The Fund--Trust Shares from July 3, 1989 (commencement of
operations) to December 31, 1996, compared to the S&P 500+.
[LINE GRAPH APPEARS HERE]
The Monitor Growth Fund - Trust Class
<TABLE>
<CAPTION>
7/3/89 12/31/89 12/31/90 12/31/91 12/31/92
<S> <C> <C> <C> <C> <C>
The Monitor Growth Fund 10,000 10,128 10,145 12,830 13,841
S&P 500 10,000 10,362 10,041 13,099 14,096
<CAPTION>
12/31/93 12/31/94 12/31/95 12/31/96
<S> <C> <C> <C> <C>
The Monitor Growth Fund 14,329 14,656 19,163 22,367
S&P 500 15,511 15,714 21,613 26,571
</TABLE>
The Monitor Growth Fund - Investment Class
<TABLE>
<CAPTION>
5/31/91 12/31/91 12/31/92 12/31/93 12/31/94
<S> <C> <C> <C> <C> <C>
The Monitor Growth Fund 9,600 10,173 10,943 11,298 11,533
S&P 500 10,000 10,899 11,728 12,906 13,075
<CAPTION>
12/31/95 12/31/96
<S> <C> <C>
The Monitor Growth Fund 15,040 17,511
S&P 500 17,983 22,108
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales load of 4.00% ($10,000 investment minus $400 sales load =
$9,600). The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
+The S&P 500 is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
2
<PAGE>
- --------------------------------------------------------------------------------
Income Equity Fund As of 12/31/96
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
Jim Buskirk, portfolio manager of The Monitor Income Equity Fund, is the
Chief Investment Officer of the Huntington Trust Company and is responsible for
all of the Trust Company's investment activities. With over 18 years of
investment management experience, Jim has managed both personal and
institutional balanced portfolios and holds the Chartered Financial Analyst
designation. Jim received his bachelor's degree in finance from The Ohio State
University, and his M.B.A. from the University Of Oregon.
"The Monitor Income Equity Fund's total return of 16.9% in 1996 was in line
with its Lipper Equity Income peer group, but lagged behind the 23% gain of the
S&P 500. The reasons for this trailing of that broad index become clear when
one considers that only five stocks (Intel, General Electric, Microsoft, Coca
Cola and IBM) in that 500 stock benchmark accounted for an incredible one
quarter of the price appreciation in the index. The Fund, because it remains
true to its charter of providing a relatively high current yield, holds only
one of those five stocks, General Electric, a position that was initiated in
1990 when General Electric's dividend yield was much higher. The other four
stocks, because of their very low yields, are not appropriate holdings in this
income-oriented stock fund.
Nevertheless, the Fund's 1996 return was buoyed by good results from its
holdings in bank stocks, a sector that has appreciated steadily in price to the
point where it now accounts for nearly 15% of total Fund assets. Chase
Manhattan, Fleet Financial, CoreStates Financial and National City were all
good performers last year. Energy stocks, which comprise about 11% of the total
assets, also posted above average price gains, with much of their advance
coming in the year's fourth quarter.
After two consecutive strong years for stock prices, history would suggest
that the odds favor a correction to develop in 1997. This could, indeed, take
place but it would seem to need a combination of weak corporate profits, higher
inflation and interest rates, or some political shock to the system in order to
unfold. While such a scenario is possible, the current backdrop appears benign.
What we do expect (but cannot promise) in 1997 is a continuation of the steady
dividend increases that have benefitted the Fund's shareholders through the
years. Last year, total annual dividends of $1.00 per share were earned in the
Fund, up from the 96 cents per share of 1995; the 86 cents in 1994 and the 72
cents per share in 1991. In fact, dividend growth has averaged 7% per year over
the past five years. We will continue to manage the Fund with the intent of
continuing that trend."
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/96
<TABLE>
<CAPTION>
TRUST SHARES
<S> <C>
QTR 6.06%
1-Year Annualized 16.88%
3-Year Annualized 14.04%
5-Year Annualized 12.06%
Annualized Since Incep. (7/3/89) 10.06%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $172.8
Net Asset Value (Trust Shares). $30.26
30-Day SEC Yield (%)........... 3.80%
Number of Issues............... 43
Cash Reserves (%).............. 7.4%
</TABLE>
FIVE LARGEST EQUITY HOLDINGS
<TABLE>
<S> <C>
Monsanto 3.8%
Corestates Financial 3.6%
Texaco 3.4%
Chase Manhattan 3.4%
General Electric 3.1%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR INCOME EQUITY FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund--Trust Shares from July 3, 1989 (commencement of operations) to December
31, 1996, compared to the Standard & Poor's Composite Stock Price 500 Index
("S&P 500")+.
[LINE GRAPH APPEARS HERE]
The Monitor Income Equity Fund - Trust Class
<TABLE>
<CAPTION>
7/3/89 12/31/89 12/31/90 12/31/91 12/31/92
<S> <C> <C> <C> <C> <C>
The Monitor Income Equity Fund 10,000 10,151 9,252 11,398 12,252
S&P 500 10,000 10,362 10,041 13,099 14,096
<CAPTION>
12/31/93 12/31/94 12/31/95 12/31/96
<S> <C> <C> <C> <C>
The Monitor Income Equity Fund 13,581 13,334 17,235 20,145
S&P 500 15,511 15,714 21,613 26,571
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
+The S&P 500 is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
3
<PAGE>
- --------------------------------------------------------------------------------
Ohio Tax-Free Fund As of 12/31/96
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
Bill Doughty, Vice President, has over twenty-four years of investment
management experience. Bill heads our fixed income trading area and is
responsible for fixed income portfolio management. He is a graduate of Franklin
University, and holds an MBA from The University of Dayton. As manager of The
Monitor Ohio Tax Free Fund since its inception in 1988, Bill has a number of
insights on the performance of the Fund and its particular investment niche:
"For the fiscal year ended December 31, 1996, the total return of the Lehman
Brothers State General Obligation Index was 4.59% while the total return of The
Monitor Ohio Tax Free Fund was 3.48% for the trust share class and 3.2% for the
investment share class. It should be mentioned, however, that this particular
Lehman index is not subject to the portfolio maturity, geographic or credit
quality restrictions of the Fund.
The Ohio Tax Free Fund must have an average portfolio maturity of four to
seven years, and may not purchase any security with a maturity of greater than
15 years. Furthermore, under normal market conditions, at least 80% of the
Fund's net assets will be invested in Ohio tax-exempt securities which are
rated in the top four categories or are of comparable quality.
The Ohio Tax Free Fund has continued to be 100% invested in Ohio securities
with no issue representing more than 5% of the portfolio. The overall credit
quality of the Fund is AA. In 1997, we will seek to extend the average life out
past six years by purchasing securities in the twelve to fifteen year range.
This will be accomplished by selling securities maturing over the next two
years and investing the excess cash position."
- --------------------------------------------------------------------------------
Tax Note: Income distributions from this Fund will, under normal circumstances,
be exempt from federal regular income taxation. However, these distributions
may not be exempt from state and local income taxation, or from the federal
Alternative Minimum Tax. Consult the prospectus and your tax advisor for more
complete information regarding the income tax attributes of distributions from
this Fund (as they relate to your specific financial circumstances).
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/96
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES
<S> <C> <C>
QTR 1.86% 1.81%
1-Year Annualized 3.48% 3.20%
3-Year Annualized 3.93% 3.67%
5-Year Annualized 5.17% 4.90%
Annualized Since Incep. 10/18/88 5/1/91
5.98% 5.35%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $ 66.7
Net Asset Value (Trust Shares). $21.49
30-Day SEC Yield (%)........... 3.98%
Number of Issues............... 190
Average Maturity (Yrs.)........ 6.6
Cash Reserves (%).............. 3%
</TABLE>
GROWTH OF $10,000 INVESTED IN
THE MONITOR OHIO TAX-FREE FUND
--INVESTMENT AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund -- Investment Shares from May 1, 1991 (commencement of operations) to
December 31, 1996, compared to the Lehman Brothers State General Obligation
Index ("LBSGO")+, Lehman Brothers 5 Year General Obligation Index ("LB5GO")+,
Lipper Short Municipal Debt Fund Average ("LSMD")++, and the Lipper
Intermediate Municipal Debt Fund Average ("LIMD")++ and The Fund--Trust Shares
from October 18, 1988 (commencement of operations) to December 31, 1996,
compared to the Lehman Brothers State General Obligation Index ("LBSGO")+,
Lehman Brothers 5 Year General Obligation Index ("LB5GO")+, Lipper Short
Municipal Debt Fund Average ("LSMD")++, and the Lipper Intermediate Municipal
Debt Fund Average ("LIMD")++.
For explanation of indices, please refer to page 37.
[LINE GRAPH APPEARS HERE]
The Monitor Ohio Tax-Free Fund - Trust Class
<TABLE>
<CAPTION>
10/18/88 12/31/88 12/31/89 12/31/90 12/31/91
<S> <C> <C> <C> <C> <C>
The Monitor Ohio Tax-Free Fund 10,000 10,058 10,799 11,478 12,517
Lehman Brothers State General
Obligation Index 10,000 9,969 10,977 11,749 13,071
Lehman Brothers 5 Year General
Obligation Index 10,000 9,974 10,845 11,632 12,945
Lipper Short Municipal Debt
Fund Average 10,000 10,057 10,754 11,435 12,280
Lipper Intermediate Municipal
Debt Fund Average 10,000 10,028 10,857 11,569 12,788
<CAPTION>
12/31/92 12/31/93 12/31/94 12/31/95 12/31/96
<S> <C> <C> <C> <C> <C>
The Monitor Ohio Tax-Free Fund 13,273 14,346 13,977 15,564 16,105
Lehman Brothers State General
Obligation Index 14,171 15,837 15,081 17,532 18,337
Lehman Brothers 5 Year General
Obligation Index 13,899 15,088 14,879 16,608 17,376
Lipper Short Municipal Debt
Fund Average 12,986 13,627 13,679 14,642 15,193
Lipper Intermediate Municipal
Debt Fund Average 13,788 15,200 14,665 16,564 17,177
</TABLE>
The Monitor Ohio Tax-Free Fund - Investment Class
<TABLE>
<CAPTION>
5/1/91 12/31/91 12/31/92 12/31/93 12/31/94
<S> <C> <C> <C> <C> <C>
The Monitor Ohio Tax-Free Fund 9,800 10,317 10,911 11,760 11,427
Lehman Brothers State General
Obligation Index 10,000 10,684 11,583 12,944 12,327
Lehman Brothers 5 Year General
Obligation Index 10,000 10,705 11,494 12,476 12,304
Lipper Short Municipal Debt
Fund Average 10,000 10,434 11,034 11,579 11,623
Lipper Intermediate Municipal
Debt Fund Average 10,000 10,618 11,449 12,621 12,177
<CAPTION>
12/31/95 12/31/96
<S> <C> <C>
The Monitor Ohio Tax-Free Fund 12,695 13,102
Lehman Brothers State General
Obligation Index 14,330 14,988
Lehman Brothers 5 Year General
Obligation Index 13,734 14,369
Lipper Short Municipal Debt
Fund Average 12,441 12,909
Lipper Intermediate Municipal
Debt Fund Average 13,754 14,263
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
4
<PAGE>
- --------------------------------------------------------------------------------
Fixed Income Securities Fund As of 12/31/96
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
Steve Geis, Vice President, joined the Huntington in 1988, and has served as
our firm's senior fixed income manager. He is the manager of the Monitor Short
Intermediate Fixed Income Securities Fund and the Monitor Fixed Income
Securities Fund. Steve is a graduate of the College of Wooster, received his
MBA from the University of Dayton, and his J.D. from Capital University. Here's
what Steve has to say about the activity in the Fixed Income Securities Fund in
1996:
"For the fiscal year ended 12/31/96, the Monitor Fixed Income Securities Fund
(trust shares) had a total return of 2.56% compared with 2.9% for the Lehman
Brothers Government Corporate Bond Index and 3.12% for the Lipper Intermediate
Investment Grade Debt Fund Average. These comparisons are very close
considering the fees of the Monitor Funds and the absence of those in an index.
The year 1996 was certainly not a particularly good one for bond investors.
However, interest rates did fall modestly during the fourth quarter and that
was enough to erase the prior unrealized losses from nine months of rate
increases. The Fund posted a small positive total return for the year. A more
stable interest rate environment in 1997 would be a welcome relief from four
straight years of dramatic "see-saw' volatility.
As in the past, we continue to maintain a steady maturity posture and will
add corporate bonds when yield spreads relative to Treasuries become
attractive."
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/96
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES
<S> <C> <C>
QTR 2.90% 2.88%
1-Year Annualized 2.56% 2.32%
3-Year Annualized 4.88% 4.61%
5-Year Annualized 6.28% 6.01%
Annualized Since Incep. 7/3/89 5/1/91
7.72% 7.43%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $145.9
Net Asset Value (Trust Shares). $20.94
30-Day SEC Yield (%)........... 5.72%
Number of Issues............... 119
Average Maturity (Yrs.)........ 7.9
Cash Reserves (%).............. 3%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR FIXED INCOME SECURITIES FUND --
INVESTMENT AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund--Investment Shares from May 1, 1991 (commencement of operations) to
December 31, 1996, compared to the Lehman Brothers Government/Corporate Bond
Index ("LBGCB")+ and the Lipper Intermediate Investment Grade Debt Fund Average
("LIIGDF")++ and The Fund--Trust Shares from July 3, 1989 (commencement of
operations) to December 31, 1996, compared to the Lehman Brothers
Government/Corporate Bond Index ("LBGCB")+ and the Lipper Intermediate
Investment Grade Debt Fund Average ("LIIGDF")++
For explanation of indices, please refer to page 37.
[LINE GRAPH APPEARS HERE]
The Monitor Fixed Income Securities Fund - Trust Class
<TABLE>
<CAPTION>
7/3/89 12/31/89 12/31/90 12/31/91 12/31/92
<S> <C> <C> <C> <C> <C>
The Monitor Fixed Income
Securities Fund 10,000 10,158 10,919 12,680 13,509
Lehman Brothers Government/
Corporate Bond Index 10,000 10,245 11,094 12,883 13,858
Lipper Intermediate Investment Grade
Debt Fund Average 10,000 10,215 10,967 12,700 13,595
<CAPTION>
12/31/93 12/31/94 12/31/95 12/31/96
<S> <C> <C> <C> <C>
The Monitor Fixed Income
Securities Fund 14,904 14,215 16,767 17,196
Lehman Brothers Government/
Corporate Bond Index 15,391 14,851 17,708 18,223
Lipper Intermediate Investment Grade
Debt Fund Average 14,940 14,455 16,866 17,392
</TABLE>
The Monitor Fixed Income Securities Fund - Investment Class
<TABLE>
<CAPTION>
5/3/91 12/31/91 12/31/92 12/31/93 12/31/94
<S> <C> <C> <C> <C> <C>
The Monitor Fixed Income
Securities Fund 9,800 10,944 11,628 12,799 12,174
Lehman Brothers Government/
Corporate Bond Index 10,000 11,127 11,969 13,293 12,827
Lipper Intermediate Investment Grade
Debt Fund Average 10,000 11,063 11,843 13,014 12,591
<CAPTION>
12/31/95 12/31/96
<S> <C> <C>
The Monitor Fixed Income
Securities Fund 14,321 14,653
Lehman Brothers Government/
Corporate Bond Index 15,295 15,740
Lipper Intermediate Investment Grade
Debt Fund Average 14,691 15,149
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
FUND COMPOSITION
as of 12/31/96
[PIE CHART APPEAR HERE]
<TABLE>
<S> <C>
A 37.0%
Aaa 3.0%
Cash Equivalents: 3.0%
Baa: 7.0%
Aa: 8.0%
U.S. Govt.: 42.0%
</TABLE>
5
<PAGE>
- --------------------------------------------------------------------------------
Mortgage Securities Fund As of 12/31/96
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
The Monitor Mortgage Securities Fund is sub-advised by Piper Capital
Management of Minneapolis, Minnesota. Worth Bruntjen and Bruce Salvog actively
manage the Fund on behalf of Huntington Trust. Worth joined Piper Capital
Management in 1988 and has managed the Fund since its inception. Bruce is a
graduate of Harvard University, and heads up the Piper Capital Management Core
Fixed Income Team.
"The Monitor Mortgage Securities Fund (trust shares) had a total return of
6.6% for the year ended 12/31/96 as included in the Financial Statements. This
compares with the Lehman Mortgage Securities Index return of 5.35% for the full
year. High volatility continued to characterize the fixed income market in
1996, as long Treasuries made a near round-trip from 5.90% in January, to 7.20%
in July and back to 6.30% in November, then higher in December to close at
6.6%. While volatility has been with us for several years, its sources appear
to have shifted. The bond market seems to lack sponsorship and bond mutual
funds have not, in the aggregate, received positive investment flows since
1993.
The duration, structure and sector strategies of the Fund performed
reasonably well during the year. Our defensive duration strategy, adopted early
in the year, aided the relative performance, but has had a modest impact since
we adopted a neutral posture in the spring.
Over a twelve month horizon, bonds appear to represent reasonable value given
the economic backdrop. However, the near term risk to the market is an
unexpected bounce in economic growth that may rekindle inflationary
expectations in an economy which is operating near full employment. We are
maintaining a neutral to slightly defensive duration strategy. As we go
forward, we look to add to the Treasury component of the Fund (currently 6% of
the portfolio) in order to protect against the tendency for mortgage securities
to underperform when interest rates decline as a result of heightened
prepayment risks."
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/96
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES
<S> <C> <C>
QTR 2.76% 2.58%
1-Year Annualized 6.56% 6.25%
3-Year Annualized 1.75% 1.60%
Annualized Since Incep. 6/2/92 6/2/92
5.88% 5.69%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil).............. $41.2
Net Asset Value (Trust Shares).. $8.06
30-Day SEC Yield (%)............ 6.59%
Number of Issues................ 33
Cash Reserves (%)............... 5.6%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR MORTGAGE SECURITIES FUND --INVESTMENT
AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund--Trust and Investment Shares from June 2, 1992 (commencement of
operations) to December 31, 1996, compared to the Merrill Lynch 3-5 Year U.S.
Treasury Index ("ML3-5YUST")+, Lipper U.S. Mortgage Fund Average ("LUSMF")++
and the Lehman Mortgage-Backed Index ("LMI")+.
For explanation of indices, please refer to page 37.
[LINE GRAPH APPEARS HERE]
The Monitor Mortgage Securities Fund:
<TABLE>
<CAPTION>
6/2/92 12/31/92 12/31/93 12/31/94 12/31/95
<S> <C> <C> <C> <C> <C>
The Monitor Mortgage Securities
Fund - Trust Class 10,000 10,746 12,131 9,148 11,993
The Monitor Mortgage Securities
Fund - Investment Class 9,800 10,513 11,839 8,913 11,688
Merrill Lynch 3-5 Year U.S.
Treasury Index 10,000 10,427 11,365 11,054 12,834
Lipper U.S. Mortgage
Fund Average 10,000 10,372 11,081 10,903 12,735
Lehman Mortgage-Backed
Index 10,000 10,364 11,128 10,643 12,362
<CAPTION>
12/31/96
<S> <C>
The Monitor Mortgage Securities
Fund - Trust Class 12,779
The Monitor Mortgage Securities
Fund - Investment Class 12,418
Merrill Lynch 3-5 Year U.S.
Treasury Index 13,291
Lipper U.S. Mortgage
Fund Average 13,317
Lehman Mortgage-Backed
Index 12,841
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
6
<PAGE>
- --------------------------------------------------------------------------------
Short/Intermediate Fixed Income Securities Fund As of 12/31/96
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
Steve Geis, Vice President, joined the Huntington in 1988, and has served as
our firm's senior fixed income manager. He is the manager of the Monitor Short
Intermediate Fixed Income Securities Fund and the Monitor Fixed Income
Securities Fund. Steve is a graduate of the College of Wooster, received his
MBA from the University of Dayton, and his J.D. from Capital University. Here's
what Steve has to say about the activity in the Short/Intermediate Fixed Income
Securities Fund in 1996:
"For the fiscal year ended 12/31/96, the Monitor Short/Intermediate Fixed
Income Securities Fund's total return was 4.08%. This compares with 4.64% for
the Lipper Short Term Investment Grade Debt Fund Index; 4.47% for the Merrill
Lynch 1-5 Year Composite Treasury Index, and 4.05% for the Lehman Intermediate
Government/Corporate Index. Given the fees applicable to the Monitor Fund,
these are very close comparisons.
Investors in shorter term bonds and bond mutual funds had a better 1996 than
those in longer maturity bonds because interest rates rose fairly dramatically
during the first nine months of the year and only fell modestly over the fourth
quarter. Looking forward, we propose to move the average maturity of the Fund
out to the 3.5 year area. We will do that by trading short-term corporates for
five year maturities. Obviously, we are hoping for a more stable rate
environment in 1997 and we plan to increase the overall corporate exposure to
enhance yields should the opportunities present themselves."
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/96
<TABLE>
<CAPTION>
TRUST SHARES
<S> <C>
QTR 2.10%
1-Year Annualized 4.08%
3-Year Annualized 5.15%
5-Year Annualized 5.82%
Annualized Since Incep. (7/3/89) 7.31%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $125.5
Net Asset Value (Trust Shares). $19.96
30-Day SEC Yield (%)........... 5.26%
Number of Issues............... 84
Average Maturity (Yrs.)........ 2.8
Cash Reserves (%).............. 3%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR SHORT/INTERMEDIATE FIXED INCOME
SECURITIES FUND--TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund--Trust Shares from July 3, 1989 (commencement of operations) to December
31, 1996, compared to the Lehman Intermediate Government/Corporate Index
("LIGC")+ and the Merrill Lynch 1-5 Year Composite Treasury Index ("ML1-5YCT")+
and the Merrill Lynch 1-5 Year Government/Corporate Index (MLI-5YGC)+ and the
Lipper Short-Term Investment Grade Debt Fund Average ("LSTIGDF")++.
For explanation of indices, please refer to page 37.
[LINE GRAPH APPEARS HERE]
The Monitor Short/Intermediate Fixed Income Securities Fund - Trust Class
<TABLE>
<CAPTION>
7/3/89 12/31/89 12/31/90 12/31/91 12/31/92
<S> <C> <C> <C> <C> <C>
The Monitor Short/Intermediate Fixed Income
Securities Fund 10,000 10,253 11,108 12,621 13,410
Lehman Brothers Intermediate Government/
Corporate Bond Index 10,000 10,251 11,192 12,828 13,747
Merrill Lynch 1-5 Year Composite
Treasury Index 10,000 10,266 11,259 12,724 13,601
Merrill Lynch 1-5 Year Government/
Corporate Index 10,000 10,029 11,258 12,708 13,562
Lipper Short-Term Investment Grade
Debt Fund Average 10,000 10,234 11,064 12,614 13,401
<CAPTION>
12/31/93 12/31/94 12/31/95 12/31/96
<S> <C> <C> <C> <C>
The Monitor Short/Intermediate Fixed Income
Securities Fund 14,406 14,265 16,093 16,749
Lehman Brothers Intermediate Government/
Corporate Bond Index 14,954 14,666 16,911 17,598
Merrill Lynch 1-5 Year Composite
Treasury Index 14,571 14,491 16,367 17,122
Merrill Lynch 1-5 Year Government/
Corporate Index 14,493 14,388 16,234 16,959
Lipper Short-Term Investment Grade
Debt Fund Average 14,407 14,107 15,924 16,606
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
FUND COMPOSITION
as of 12/31/96
<TABLE>
<S> <C>
A 52%
Cash Equivalents: 3.0%
Baa: 5.0%
Aa: 8.0%
U.S. Govt.: 32.0%
</TABLE>
7
<PAGE>
Portfolios of Investments
------------------------------------
THE MONITOR MONEY MARKET FUND December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------
<C> <S> <C>
(A) COMMERCIAL PAPER - 88.4%
- -----------------------------------------------
AGRICULTURE - 2.3%
$10,000,000 Cargill Inc.,
5.25-5.28%,
01/23/97-
02/10/97 $9,954,700
- -----------------------------------------------
AUTOMOTIVE - 2.3%
10,000,000 Daimler Benz
North America
Corp., 5.30-
5.32%,
02/06/97-
03/03/97 9,928,428
- -----------------------------------------------
BANKING - 5.7%
10,000,000 National City
Credit Corp.,
5.35-5.39%,
03/21/97-
03/31/97 9,874,728
10,000,000 Toronto Dominion
Holdings, 5.24-
5.34%,
02/11/97-
03/19/97 9,913,053
5,000,000 U S Central
Credit Union,
5.29%, 01/21/97 4,985,306
- -----------------------------------------------
24,773,087
- -----------------------------------------------
BANKING & FINANCE - 6.9%
10,000,000 American Express
Credit Corp.,
5.36-5.42%,
01/14/97-
3/26/97 10,000,000
15,000,000 Ford Motor
Credit Corp.,
5.28-5.36%,
01/27/97-
02/04/97 14,975,067
5,000,000 Xerox Credit
Corp., 5.42%,
02/07/97 4,972,147
- -----------------------------------------------
29,947,214
- -----------------------------------------------
CHEMICALS - 3.4%
5,000,000 Akzo Nobel Inc.,
5.35%, 03/06/97 4,952,444
10,000,000 du Pont (E. I.)
de Nemours &
Co., 5.25-
5.29%, 02/13/97 9,937,053
- -----------------------------------------------
14,889,497
- -----------------------------------------------
CONSUMER PRODUCTS - 2.3%
5,000,000 Pacific Dunlop
Ltd., 5.32%,
02/21/97 4,962,317
5,000,000 Proctor & Gamble
Corp., 5.25%,
02/03/97 4,975,938
- -----------------------------------------------
9,938,255
- -----------------------------------------------
ELECTRONICS - 9.8%
5,000,000 Electronic Data
System, 5.43%,
03/21/97 4,940,421
10,500,000 Lucent
Technologies,
5.23%,
02/04/97-
02/19/97 10,437,240
13,000,000 Sharp
Electronics,
5.31-5.40%,
01/10/97-
03/14/97 12,935,380
5,000,000 Siemens Corp.,
5.28%, 01/06/97 4,996,333
5,000,000 Sony Capital
Corp., 5.32%,
01/13/97 4,991,133
5,000,000 Xerox Corp.,
5.30%, 01/07/97 4,995,583
- -----------------------------------------------
43,296,090
- -----------------------------------------------
ENTERTAINMENT - 2.3%
10,000,000 Walt Disney
Inc., 5.25-
5.28%,
02/14/97-
02/26/97 9,926,900
- -----------------------------------------------
FINANCIAL - 4.6%
10,000,000 Daiwa America,
5.70%, 01/22/97 9,966,750
5,000,000 Goldman Sachs
Co., 5.28%,
02/05/97 4,974,333
5,000,000 Morgan Stanley
Group Inc.,
5.32%, 01/17/97 4,988,178
- -----------------------------------------------
19,929,261
- -----------------------------------------------
FOOD & BEVERAGE - 5.0%
12,000,000 Anheuser Busch
Co., 5.22-
6.25%,
01/02/97-
01/13/97 11,990,085
10,000,000 Coca Cola Co.,
5.23-5.25%,
02/14/97-
02/21/97 9,930,852
- -----------------------------------------------
21,920,937
- -----------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------
<C> <S> <C>
FOOD PRODUCTS - 5.7%
$10,000,000 Golden Peanut
Co., 5.32%,
01/02/97 $9,998,522
10,000,000 Nestle Capital
Corp., 5.23-
5.25%,
01/16/97-
04/07/97 9,919,104
5,000,000 Sara Lee Corp.,
5.35%, 03/27/97 4,936,840
- ---------------------------------------------------
24,854,466
- ---------------------------------------------------
FUNDING CORP - 2.3%
10,000,000 Corporate Asset
Funding Corp.,
5.28%, 01/23/97 9,967,733
- ---------------------------------------------------
INSURANCE - 5.7%
10,000,000 A.I. Credit
Corp., 5.27%,
01/06/97-
01/15/97 9,986,093
5,000,000 Met Life Funding
Corp., 5.26%,
02/24/97 4,960,550
10,000,000 USAA Capital
Corp., 5.28-
5.29%,
01/08/97-
03/06/97 9,947,924
- ---------------------------------------------------
24,894,567
- ---------------------------------------------------
LUMBER & WOOD PRODUCTS - 2.3%
10,000,000 Weyerhauser Co.,
5.27-5.30%,
01/24/97-
02/07/97 9,955,929
- ---------------------------------------------------
OIL & OIL FINANCE - 2.3%
10,000,000 Shell Oil Co.,
6.40%, 01/02/97 9,998,222
- ---------------------------------------------------
PHARMACEUTICALS - 5.1%
10,000,000 Eli Lilly Co.,
5.25-5.28%,
02/07/97-
02/24/97 9,933,492
6,548,000 Schering Corp.,
5.28%, 02/11/97 6,508,625
6,000,000 Unilever Capital
Corp., 5.31%,
03/18/97 5,932,740
- ---------------------------------------------------
22,374,857
- ---------------------------------------------------
PRINTING & PUBLISHING - 2.7%
6,925,000 McGraw Hill,
5.31%, 01/07/97 6,918,871
5,000,000 R.R. Donnelly &
Sons, 5.28%,
02/18/97 4,964,800
- ---------------------------------------------------
11,883,671
- ---------------------------------------------------
(H) SOVEREIGN GOVERNMENT - 2.3%
10,000,000 Wool
International,
5.25-5.28%,
01/13/97-
02/12/97 9,947,375
- ---------------------------------------------------
TECHNOLOGY - 4.6%
10,000,000 IBM Corp., 5.28-
5.30%,
01/21/97-
01/24/97 9,968,402
10,000,000 Motorola Inc.,
5.23%,
02/11/97-
02/20/97 9,933,899
- ---------------------------------------------------
19,902,301
- ---------------------------------------------------
TELECOMMUNICATIONS - 9.6%
5,000,000 A T & T Corp.,
5.30%, 04/08/97 4,928,597
10,000,000 Ameritech Corp.,
5.27%,
02/24/97-
03/20/97 9,903,383
10,000,000 Bellsouth
Telecommunications,
5.32-5.45%,
02/12/97-
03/13/97 9,915,747
7,000,000 Bellsouth
Capital
Funding, 5.29%,
01/22/97 6,978,399
5,000,000 SBC
Communication
Capital, 5.54%,
01/30/97 4,977,686
5,000,000 Southwestern
Bell Telephone,
5.30%, 01/28/97 4,980,125
- ---------------------------------------------------
41,683,937
- ---------------------------------------------------
</TABLE>
8
<PAGE>
------------------------------------
THE MONITOR MONEY MARKET FUND (Continued)
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND December 31,
1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------
<C> <S> <C>
TOBACCO - 1.2%
$5,105,000 Philip Morris
Companies,
Inc., 5.28%,
01/15/97 $5,094,518
- ------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMOR-
TIZED COST) 385,061,945
- ------------------------------------------------
GOVERNMENT AGENCIES - 1.1%
5,000,000 Student Loan
Marketing
Association,
Weekly VRDNs 5,000,000
- ------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ----------------------------------------------------
<C> <S> <C>
(B) REPURCHASE AGREEMENTS - 10.8%
- ----------------------------------------------------
$46,902,300 Morgan Stanley &
Co., dated
12/31/96,
6.25%, due
01/02/97,
repurchase
price
$46,910,443
(collateralized
by US T-Note
obligations,
total par value
$39,930,000,
8.125%,
08/15/21; total
market value
$47,585,330) $46,902,300
- ----------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED
COST) $436,964,245(C)
- ----------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO - 96.7%
$760,000 Berea City, OH, BANs, 4.09%, 07/10/1997 $760,285
- -------------------------------------------------------------------------------
465,000 Berea, OH, BANs, 4.10%, 10/23/1997 465,871
- -------------------------------------------------------------------------------
1,535,000 Brecksville, OH, BANs, 4.05%, 07/30/1997 1,536,306
- -------------------------------------------------------------------------------
1,100,000 Butler County, OH, BANs, 4.25%, 10/23/1997 1,103,321
- -------------------------------------------------------------------------------
1,965,000 Centerville, OH, Weekly VRDNs, (Bethany Village)/(PNC
Bank OH LOC) 1,965,000
- -------------------------------------------------------------------------------
1,300,000 Cincinnati Hamilton, OH, Student Loan Funding Corp.,
Weekly VRDNs, (Series 1983A)/(Bank of America LOC) 1,300,000
- -------------------------------------------------------------------------------
2,000,000 Cincinnati, OH, City School District, (Series C) /(Fifth
Third Bank LOC), 5.41%, 07/10/1997 2,018,503
- -------------------------------------------------------------------------------
3,302,000 Cleremont County, OH, Hospital Facilities, Daily VRDNs,
(Mercy Health Care System)/(MBIA Insured) 3,302,000
- -------------------------------------------------------------------------------
4,000,000 Columbus, OH, Weekly VRDNs, (West Deutsche Landesbank
LOC) 4,000,000
- -------------------------------------------------------------------------------
4,900,000 Columbus, OH, Electric System Revenue, Weekly VRDNs,
(Union Bank Of Switzerland LOC) 4,900,000
- -------------------------------------------------------------------------------
6,200,000 Columbus, OH, Sewer System Revenue Bonds, Weekly VRDNs,
(Series 1994) 6,200,000
- -------------------------------------------------------------------------------
805,000 Cuyahoga County, OH, (Cleveland Neighborhood), 3.90%,
06/01/1997 805,000
- -------------------------------------------------------------------------------
2,000,000 Cuyahoga County, OH, HRB, Weekly VRDNs, (Cleveland
Clinic)/(Series B) 2,000,000
- -------------------------------------------------------------------------------
600,000 Cuyahoga County, OH, HRB, Daily VRDNs, (University
Hospital Cleveland)/(Dai-Ichi Kangyo Bank Ltd. LOC) 600,000
- -------------------------------------------------------------------------------
2,000,000 Cuyahoga County, OH, HRB, Weekly VRDNs,(Cleveland
Clinic)/(Series 1996A)/(Morgan Guaranty LOC) 2,000,000
- -------------------------------------------------------------------------------
1,400,000 Cuyahoga County, OH, IDA, Weekly VRDNs, (Allen Group
Inc.)/(Dresdner Bank AG, NY LOC) 1,400,000
- -------------------------------------------------------------------------------
700,000 Cuyahoga County, OH, IDR, (Fogg Centax, 11
Project)/(Equitable Federal LOC), 3.90%, 01/01/1997 700,000
- -------------------------------------------------------------------------------
320,000 Cuyahoga County, OH, IDR, (Fogg Centax, 11
Project)/(Equitable Federal LOC), 3.75%, 07/01/1997 320,000
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO (CONTINUED)
$4,650,000 Cuyahoga County, OH, IDR, Weekly VRDNs, (Edgecomb
Metals)/(Banque Nationale De Paris LOC) $4,650,000
- -------------------------------------------------------------------------------
800,000 Delaware County, OH, IDR Weekly VRDNs, (Radiation
Sterilizers)/(Well Fargo LOC) 800,000
- -------------------------------------------------------------------------------
1,775,000 Dover, OH, BANs, 4.35%, 09/11/1997 1,778,113
- -------------------------------------------------------------------------------
1,500,000 Dublin, OH, City School District, 4.00%, 06/10/1997 1,503,242
- -------------------------------------------------------------------------------
1,000,000 Elyria, OH, BANs, 4.20%, 09/25/1997 1,001,380
- -------------------------------------------------------------------------------
1,600,000 Evendale, OH, IDR, Weekly VRDNs, (Shaver Real
Estate)/(ABN AMRO Bank LOC) 1,600,000
- -------------------------------------------------------------------------------
1,000,000 Forest Hills, OH, Local School District, BANs, 4.21%,
06/17/1997 1,002,980
- -------------------------------------------------------------------------------
2,000,000 Franklin County, OH, HRB, Weekly VRDNs, (Series
1996)/(Morgan Guaranty Trust New York LOC) 2,000,000
- -------------------------------------------------------------------------------
2,400,000 Franklin County, OH, HRB, Weekly VRDNs, (Fransiscan
Sisters)/(Chase Manhattan Bank LOC) 2,400,000
- -------------------------------------------------------------------------------
2,500,000 Franklin County, OH, HRB, Weekly VRDNs, (Holy Cross
Hlth Systems)/(J.P. Morgan LOC) 2,500,000
- -------------------------------------------------------------------------------
1,200,000 Franklin County, OH, HRB, Weekly VRDNs, (Childrens
Hospital)/(Banc One SPA) 1,200,000
- -------------------------------------------------------------------------------
750,000 Franklin County, OH, IDR, Daily VRDNs, (Columbus
College Art Design)/(Bank One LOC) 750,000
- -------------------------------------------------------------------------------
1,500,000 Franklin County, OH, Weekly VRDNs, (Dominican
Sisters)/(Fifth Third Bank LOC) 1,500,000
- -------------------------------------------------------------------------------
700,000 Hamilton County, OH, Health Care System, Weekly VRDNs,
(West Park) 700,000
- -------------------------------------------------------------------------------
1,000,000 Hamilton County, OH, BANs, (Series A), 4.00%,
04/10/1997 1,001,271
- -------------------------------------------------------------------------------
1,100,000 Hamilton County, OH, Daily VRDNs, (Automated Data
Processing Co.) 1,100,000
- -------------------------------------------------------------------------------
4,700,000 Hamilton County, OH, Health Systems, Daily VRDNs,
(Franciscan Sisters)/(Sumitomo Bank LOC) 4,700,000
- -------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
Portfolio of Investments
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------
<C> <S> <C>
OHIO (CONTINUED)
$1,000,000 Highland Heights, OH, BANs, 3.97%, 12/18/1997 $1,002,040
- ------------------------------------------------------------------------------
1,000,000 Hilliard, OH, BANs, 4.40%, 09/18/1997 1,002,758
- ------------------------------------------------------------------------------
400,000 Hilliard, OH, BANs, 4.00%, 04/10/1997 400,312
- ------------------------------------------------------------------------------
1,490,000 Lakota, OH, Local School District, 4.10%, 06/12/1997 1,492,343
- ------------------------------------------------------------------------------
1,000,000 Lorain County, OH, Public Improvement, 4.40%,
09/19/1997 1,002,697
- ------------------------------------------------------------------------------
1,885,000 Lorain County, OH, Hospital, Weekly VRDNs, (Elyria
United Methodist)/(Key Bank LOC) 1,885,000
- ------------------------------------------------------------------------------
965,000 Mahoning County, OH, Daily VRDNs, (Series
1992)/(Copland Oaks)/(Bank One LOC) 965,000
- ------------------------------------------------------------------------------
1,000,000 Marion County, OH, Daily VRDNs, (Bank One LOC) 1,000,000
- ------------------------------------------------------------------------------
1,000,000 Montgomery County, OH, Miami Valley Hospital, (Series
B)/(Northern Trust LOC), 3.60%, 01/22/1997 1,000,000
- ------------------------------------------------------------------------------
500,000 Moreland Hills, OH, BANs, 3.95%, 12/17/1997 501,157
- ------------------------------------------------------------------------------
1,000,000 Morrow County, OH, Daily VRDNs, (Field
Container)/(American National Bank LOC) 1,000,000
- ------------------------------------------------------------------------------
1,000,000 Ohio School District, Cash Flow Borrowing Program,
BANs, (Series B), 4.53%, 06/30/1997 1,002,591
- ------------------------------------------------------------------------------
1,000,000 Ohio State Air Quality, 3.55%, 02/06/1997 1,000,000
- ------------------------------------------------------------------------------
3,200,000 Ohio State Air Quality, Development Authority, Daily,
VRDNs, (Mead Corp.)/(Deutsche Bank LOC) 3,200,000
- ------------------------------------------------------------------------------
2,500,000 Ohio State Air Quality, Cleveland Electric, (FGIC
Insured), 3.45%, 02/04/1997 2,500,000
- ------------------------------------------------------------------------------
3,400,000 Ohio State Development Authority, Daily VRDNs, (Mead
Corp.)/(Swiss bank LOC) 3,400,000
- ------------------------------------------------------------------------------
3,200,000 Ohio State Environmental Improvement, Weekly VRDNs,
(USX Corp.)/(Sanwa Bank LOC) 3,200,000
- ------------------------------------------------------------------------------
3,200,000 Ohio State Higher Ed. Facility, Daily VRDNs, (Oberlin
College)/(Morgan Guaranty Trust 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
- ------------------------------------------------------------------------------
3,515,000 Ohio State University, Daily VRDNs, (Series 1986B)/
(National Westminster Bank PLC LOC) 3,515,000
- ------------------------------------------------------------------------------
2,040,000 Ohio State University, Weekly VRDNs, (Series
1985B)/(National Westminster Bank PLC LOC) 2,040,000
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO (CONTINUED)
$2,775,000 Ohio State University, Weekly VRDNs, (Series
1992B) $2,775,000
- -------------------------------------------------------------------------------
2,300,000 Ohio State Water Dev. Authority, 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 1,000,590
- -------------------------------------------------------------------------------
4,610,000 Sharonville, OH, IDR, Weekly VRDNs, (Edgecomb
Metals)/(Banque Nationale De Paris LOC) 4,610,000
- -------------------------------------------------------------------------------
1,000,000 Solon, OH, School District, BANs, (Series 2),
4.00%, 04/15/1997 1,001,508
- -------------------------------------------------------------------------------
1,000,000 Stark County, OH, BANs, (Series 96), 4.10%,
10/16/1997 1,001,707
- -------------------------------------------------------------------------------
1,000,000 Stark County, OH, BANs, 4.12%, 06/19/1997 1,001,005
- -------------------------------------------------------------------------------
1,000,000 Strongsville City, OH, BANs, 3.90%, 12/18/1997 1,002,321
- -------------------------------------------------------------------------------
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 400,905
- -------------------------------------------------------------------------------
1,800,000 Toledo-Lucas County, OH, (CSX Corp.)/(Bank of Nova
Scotia LOC), 3.50%, 02/10/1997 1,800,000
- -------------------------------------------------------------------------------
1,000,000 University of Cincinnati, OH, BANs, (Series AA),
3.89%, 03/20/1997 1,000,643
- -------------------------------------------------------------------------------
1,000,000 University of Cincinnati, OH, BANs, 3.75%,
03/20/1997 1,000,924
- -------------------------------------------------------------------------------
1,500,000 University of Cincinnati, OH, BANs, 4.25%,
08/28/1997 1,503,854
- -------------------------------------------------------------------------------
1,000,000 Warren County, OH, IDR, Weekly VRDNs, (Pioneer
Industrial)/(Bank of Tokyo-Mitsubishi Bank LOC) 1,000,000
- -------------------------------------------------------------------------------
1,400,000 Willoughby, OH, GO, BANs, 3.75%, 01/30/1997 1,400,264
- -------------------------------------------------------------------------------
700,000 Wooster, OH, IDR, Weekly VRDNs, (Allen
Group)/(Dresdner Bank LOC) 700,000
- -------------------------------------------------------------------------------
TOTAL OHIO (AT AMORTIZED COST) 126,470,891
- -------------------------------------------------------------------------------
PUERTO RICO - 2.6%
3,340,000 Puerto Rico Government Development Bank, 3.40%,
01/14/1997 3,340,000
- -------------------------------------------------------------------------------
OTHER - .7%
856,000 Nuveen Tax-Exempt Money Market Fund, Inc. 856,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) 130,666,891(C)
- -------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
10
<PAGE>
------------------
THE MONITOR U.S. TREASURY MONEY MARKET FUND December 31, 1996
<TABLE>
- ---------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------------------------------------
<C> <S> <C>
U.S. TREASURY BILLS - 48.3%
- ---------------------------------------
$15,000,000 05/01/1997 $14,748,500
- ---------------------------------------
10,000,000 05/15/1997 9,812,772
- ---------------------------------------
20,000,000 03/20/1997 19,781,817
- ---------------------------------------
10,000,000 05/01/1997 9,832,000
- ---------------------------------------
20,000,000 02/27/1997 19,840,242
- ---------------------------------------
10,000,000 04/24/1997 9,841,486
- ---------------------------------------
10,000,000 01/23/1997 9,969,108
- ---------------------------------------
10,000,000 03/06/1997 9,909,867
- ---------------------------------------
20,000,000 04/10/1997 19,721,150
- ---------------------------------------
10,000,000 04/03/1997 9,870,178
- ---------------------------------------
20,000,000 04/17/1997 19,701,139
- ---------------------------------------
20,000,000 01/09/1997 19,977,333
- ---------------------------------------
20,000,000 01/16/1997 19,957,417
- ---------------------------------------
10,000,000 02/06/1997 9,948,200
- ---------------------------------------
20,000,000 02/20/1997 19,855,556
- ---------------------------------------
20,000,000 03/13/1997 19,793,706
- ---------------------------------------
10,000,000 02/13/1997 9,936,454
- ---------------------------------------
TOTAL U.S. TREASURY BILLS 252,496,925
- ---------------------------------------
</TABLE>
<TABLE>
<C> <S> <C>
(D) REPURCHASE AGREEMENTS - 52.1%
- --------------------------------------------
25,000,000 A.G. Lanston &
Co. Inc., dated
12/30/96,
5.90%, due
01/06/1997
repurchase
price
$25,028,681
(collateralized
by U.S.
Treasury
obligations,
total par value
$25,791,000,
5.125%-7.25%,
12/31/98-
5/15/16; total
market value
$25,492,735) 25,000,000
17,033,000 Daiwa Securities
of America,
Inc., dated
12/31/96,
6.73%, due
01/02/1997
repurchase
price
$17,039,368
(collateralized
by U.S.
Treasury
obligations,
total par value
$17,148,000,
5.125%,
04/30/98; total
market value
$17,408,177) 17,033,000
60,000,000 Daiwa Securities
of America,
Inc., dated
12/31/96,
6.75%, due
01/02/1997
repurchase
price
$60,022,500
(collateralized
by U.S.
Treasury
obligations,
total par value
$61,116,000,
6.125%-6.255%,
04/30/01-
03/31/98; total
market value
$61,112,690) 60,000,000
20,000,000 Dean Witter
Reynolds, Inc.,
dated 12/31/96,
5.35%, due
01/07/1997
repurchase
price
$20,020,806
(collateralized
by U.S.
Treasury
obligations,
total par value
$20,353,000,
5.625%,
06/30/97; total
market value
$20,384,802) 20,000,000
</TABLE>
<TABLE>
- ------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------
<C> <S> <C>
(D) REPURCHASE AGREEMENTS (CONTINUED)
- ------------------------------------------------
$25,000,000 First Boston
Corp., dated
12/27/96,
5.72%, due
01/03/1997
repurchase
price
$25,027,806
(collateralized
by U.S.
Treasury
obligations,
total par value
$26,282,000,
6.25%,
08/15/23; total
market value
$25,255,359) $25,000,000
15,000,000 Morgan Stanley &
Co. Inc., dated
12/31/96,
5.65%, due
01/07/1997
repurchase
price
$15,016,479
(collateralized
by U.S.
Treasury
obligations,
total par value
$14,570,000,
7.5%, 10/31/99;
total market
value
$15,305,066) 15,000,000
20,000,000 Nikko
Securities,
Inc., dated
12/31/96,
5.65%, due
01/07/1997
repurchase
price
$20,021,972
(collateralized
by U.S.
Treasury
obligations,
total par value
$18,630,000,
7.25%,
08/15/22; total
market value
$20,207,728) 20,000,000
25,000,000 Nomura Bank
Limited, dated
12/26/96,
5.60%, due
01/02/1997
repurchase
price
$25,027,222
(collateralized
by U.S.
Treasury
obligations,
total par value
$24,345,000,
7.5%-7.75%,
12/31/99-
11/15/16; total
market value
$25,510,199) 25,000,000
25,000,000 Sanwa Securities
(USA) Co.,
dated 12/30/96,
5.70%, due
01/06/1997
repurchase
price
$20,027,708
(collateralized
by U.S.
Treasury
obligations,
total par value
$25,424,000,
5.375%,
11/30/97; total
market value
$25,492,711) 25,000,000
20,000,000 Sanwa Securities
(USA) Co.,
dated 12/26/96,
5.60%, due
01/02/1997
repurchase
price
$20,021,778
(collateralized
by U.S.
Treasury
obligations,
total par value
$21,296,000,
5.43%,
10/16/97; total
market value
$20,409,731) 20,000,000
20,000,000 Smith Barney,
Inc., dated
12/27/96,
5.65%, due
01/03/1997
repurchase
price
$20,021,972
(collateralized
by U.S.
Treasury
obligations,
total par value
$19,730,000,
6.25%,
07/31/98; total
market value
$20,372,163) 20,000,000
- ------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 272,033,000
- ------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED
COST) 524,529,925(C)
- ------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
11
<PAGE>
---------------------------------------------
THE MONITOR GROWTH FUND December 31, 1996
------------------------------------
THE MONITOR INCOME EQUITY FUND December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------------------------------------------------------
<C> <S> <C>
COMMON STOCK - 99.0%
- ---------------------------------------------------------
BASIC INDUSTRY - .5%
50,000 Worthington Industries, Inc. $906,250
- ---------------------------------------------------------
CAPITAL GOODS - 3.2%
55,000 Boeing Co. 5,850,625
- ---------------------------------------------------------
CHEMICALS - 7.4%
260,000 Hanna (M.A.) Co. 5,687,500
5,000 Millennium Chemicals, Inc.* 88,750
16,600 Potash Corp. 1,411,000
100,000 Sigma Aldrich Corp. 6,243,750
- ---------------------------------------------------------
13,431,000
- ---------------------------------------------------------
CONSUMER NON-DURABLES - 6.6%
100,000 American Brands 4,962,500
70,000 Colgate-Palmolive Co. 6,457,500
70,000 Hanson PLC 472,500
- ---------------------------------------------------------
11,892,500
- ---------------------------------------------------------
CONSUMER PRODUCTS - 15.3%
170,000 American Greetings Corp. 4,823,750
100,000 International Flavors & Fragrances 4,500,000
168,750 Mattel, Inc. 4,682,813
106,300 Media General Cl. A 3,215,575
115,000 Newell Co. 3,622,500
94,000 Tambrands, Inc. 3,842,250
50,000 Wrigley Wm Jr Co. 2,812,500
- ---------------------------------------------------------
27,499,388
- ---------------------------------------------------------
CONTAINERS & PACKAGING - 2.0%
100,000 Avery Dennison Corp. 3,537,500
- ---------------------------------------------------------
ELECTRICAL EQUIPMENT - 6.1%
40,000 Emerson Electric Co. 3,870,000
36,800 General Electric Co. 3,638,600
79,164 Hubbell, Inc. 3,423,843
- ---------------------------------------------------------
10,932,443
- ---------------------------------------------------------
ENERGY - 7.0%
95,000 Anadarko Petroleum 6,151,250
65,000 Schlumberger 6,491,875
- ---------------------------------------------------------
12,643,125
- ---------------------------------------------------------
FINANCIAL - 3.3%
105,000 American Express 5,932,500
- ---------------------------------------------------------
FOOD & BEVERAGE - 4.6%
70,000 McDonald's Corp. 3,167,500
177,000 Pepsico, Inc. 5,177,250
- ---------------------------------------------------------
8,344,750
- ---------------------------------------------------------
FOOD DISTRIBUTOR/SER. SYSTEM- 2.1%
115,000 Sysco Corp. 3,751,875
- ---------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES/PAR VALUE
- ------------------------------------------------------------------------
<C> <S> <C>
HEALTH CARE - 2.3%
90,000 Columbia/HCA Healthcare Corp. $3,667,500
6,000 Medtronic, Inc. 408,000
- ------------------------------------------------------------------------
4,075,500
- ------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 5.6%
15,000 Illinois Tool Works, Inc. 1,198,125
75,000 Nordson Corp. 4,781,250
240,000 RPM, Inc. 4,080,000
- ------------------------------------------------------------------------
10,059,375
- ------------------------------------------------------------------------
INSURANCE - 5.3%
33,500 American International Group 3,626,375
73,500 Cincinnati Financial Corp. 4,768,313
7,000 General Re Corp. 1,104,250
- ------------------------------------------------------------------------
9,498,938
- ------------------------------------------------------------------------
PHARMACEUTICALS - 12.5%
100,000 Abbott Laboratories 5,075,000
19,000 American Home Products Corp. 1,113,875
60,000 Merck & Co. 4,755,000
75,000 Pfizer, Inc. 6,215,625
31,000 Pharmacia & Upjohn, Inc. 1,228,375
65,000 Schering Plough Corp. 4,208,750
- ------------------------------------------------------------------------
22,596,625
- ------------------------------------------------------------------------
RETAIL - 6.0%
115,000 Home Depot 5,764,375
30,000 Kohl's Corp.* 1,177,500
95,000 Walgreen 3,800,000
- ------------------------------------------------------------------------
10,741,875
- ------------------------------------------------------------------------
TECHNOLOGY - 8.6%
140,000 Automatic Data Processing, Inc. 6,002,500
13,000 Computer Sciences Corp.* 1,067,625
110,000 Electronics Data Systems Corp. 4,757,500
30,000 Hewlett-Packard Co. 1,507,500
35,000 Motorola, Inc. 2,148,125
- ------------------------------------------------------------------------
15,483,250
- ------------------------------------------------------------------------
TELECOMMUNICATIONS - .5%
33,000 Airtouch Communications, Inc.* 833,250
- ------------------------------------------------------------------------
TOBACCO - .1%
17,500 Imperial Tobacco Group PLC* 225,749
- ------------------------------------------------------------------------
TOTAL COMMON STOCK - (IDENTIFIED COST,$127,342,144) 178,236,518
- ------------------------------------------------------------------------
(E) COMMERCIAL PAPER - .9%
- ------------------------------------------------------------------------
1,696,613 Prudential Funding Corp., 5.50%, 01/02/97 (at
amortized cost) 1,696,613
- ------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $129,038,757) $179,933,131
- ------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ---------------------------------------------------
<C> <S> <C>
COMMON STOCK - 79.0%
- ---------------------------------------------------
BANKING & FINANCE - 14.7%
65,000 Chase Manhattan Corp. $5,801,250
120,000 CoreStates Financial Corp. 6,225,000
100,000 Fleet Financial Group, Inc. 4,987,500
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- --------------------------------------------
<C> <S> <C>
BANKING & FINANCE (CONTINUED)
100,000 National City Corp. $4,487,500
110,000 Ohio Casualty Corp. 3,905,000
- --------------------------------------------
25,406,250
- --------------------------------------------
</TABLE>
12
<PAGE>
------------------------------------
THE MONITOR INCOME EQUITY FUND (Continued)
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- --------------------------------------------------------
<C> <S> <C>
BASIC INDUSTRY - 8.9%
40,000 duPont (E.I.) de Nemours & Co. $3,775,000
170,000 Monsanto Co. 6,608,750
90,000 PPG Industries, Inc. 5,051,250
- --------------------------------------------------------
15,435,000
- --------------------------------------------------------
BUSINESS SERVICES - 2.1%
108,900 John H. Harland Co. 3,593,700
- --------------------------------------------------------
CAPITAL GOODS - 3.1%
105,000 Worthington Industries, Inc. 1,903,125
172,400 Zero Corp. 3,448,000
- --------------------------------------------------------
5,351,125
- --------------------------------------------------------
CONSUMER DURABLES - 1.8%
100,000 Ford Motor Co. 3,187,500
- --------------------------------------------------------
CONSUMER NON-DURABLES - 14.5%
70,000 American Brands, Inc. 3,473,750
80,000 American Home Products Corp. 4,690,000
35,000 Bristol Myers Squibb Co. 3,806,250
40,000 Clorox Co. 4,015,000
116,000 Pharmacia Upjohn, Inc. 4,596,500
300,000 RJR Nabisco (Series C) 2,025,000
60,000 Tambrands, Inc. 2,452,500
- --------------------------------------------------------
25,059,000
- --------------------------------------------------------
ELECTRICAL EQUIPMENT - 3.1%
54,000 General Electric Co. 5,339,250
- --------------------------------------------------------
ENERGY - 10.6%
30,000 Atlantic Richfield Co. 3,975,000
42,000 Exxon Corp. 4,116,000
25,000 Royal Dutch Petroleum Co. ADR 4,268,750
60,000 Texaco, Inc. 5,887,500
- --------------------------------------------------------
18,247,250
- --------------------------------------------------------
FINANCE-RETAIL - .8%
50,000 Security Capital Industrial Pf B 1,362,500
- --------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 3.3%
40,000 Cali Realty Corp. 1,235,000
100,000 National Health Properties, Inc. 2,425,000
65,500 Simon DeBartolo Group, Inc. 2,030,500
- --------------------------------------------------------
5,690,500
- --------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES/PAR VALUE
- ----------------------------------------------------------------------------
<C> <S> <C>
TECHNOLOGY - 2.7%
90,000 Xerox Corp. $4,736,250
- ----------------------------------------------------------------------------
TELECOMMUNICATIONS - 5.2%
30,000 Bell Atlantic Corp. 1,942,500
100,000 GTE Corp. 4,550,000
30,000 Telecom of New Zealand Ltd. ADR 2,430,000
- ----------------------------------------------------------------------------
8,922,500
- ----------------------------------------------------------------------------
UTILITIES - 8.2%
200,000 DPL Inc. 4,900,000
120,000 Ipalco Enterprises, Inc. 3,270,000
90,000 Peoples Energy Corp. 3,048,750
110,000 Wisconsin Energy Corp. 2,956,250
- ----------------------------------------------------------------------------
14,175,000
- ----------------------------------------------------------------------------
TOTAL COMMON STOCK - (IDENTIFIED COST, $83,768,620) 136,505,825
- ----------------------------------------------------------------------------
CORPORATE BONDS - 1.1%
2,000,000 KeyCorp Institutional Capital
(Series 144-A), 7.83%, 12/01/2026
(identified cost $1,973,691) 1,970,000
- ----------------------------------------------------------------------------
U.S. TREASURIES - 12.0%
4,000,000 United States Treasury Note, 6.75%, 06/30/1999 4,070,360
8,000,000 United States Treasury Note, 7.75%, 02/15/2001 8,453,679
6,700,000 United States Treasury Note, 8.88%, 08/15/2017 8,276,242
- ----------------------------------------------------------------------------
TOTAL U.S. TREASURIES - (IDENTIFIED COST $20,312,355) 20,800,281
- ----------------------------------------------------------------------------
(E) COMMERCIAL PAPER - 7.4%
5,000,000 Commercial Credit Corp., 5.49%, 01/08/1997 5,000,000
3,000,000 General Motors Acceptance Corp., 5.64%, 01/14/1997 3,000,000
4,773,527 Prudential Funding Corp., 5.50%, 01/02/1997 4,773,527
- ----------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER - (AT AMORTIZED COST) 12,773,527
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $118,828,193) 172,049,633
- ----------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES - 90.9%
- ---------------------------------------------------------------------------
OHIO - 90.9%
$500,000 Akron, OH, GO Bonds, 5.30%, 12/01/2011 $490,625
- ---------------------------------------------------------------------------
215,000 Alliance, OH, City School District, (AMBAC Insured),
6.20%, 12/01/2001 232,200
- ---------------------------------------------------------------------------
250,000 Archbold, OH, Local School District, (Prerefunded),
12/1/98 (@102), 6.80% (g) 267,813
- ---------------------------------------------------------------------------
300,000 Aurora, OH, GO, City School District, (FGIC Insured),
5.50%, 12/01/2007 313,500
- ---------------------------------------------------------------------------
290,000 Aurora, OH, (Prerefunded), 12/1/99, (@102), 7.35% (g) 319,725
- ---------------------------------------------------------------------------
280,000 Avon Lake, OH, Water System, (AMBAC Insured), 5.10%,
10/01/2005 285,600
- ---------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -----------------------------------------------------------------------------
$250,000 Beachwood, OH, City School District, 6.60%, 12/01/2004 $273,438
- -----------------------------------------------------------------------------
215,000 Bedford, OH, City School District, (Energy Conservation
Improvement), 5.35%, 06/15/2002 220,644
- -----------------------------------------------------------------------------
200,000 Bedford, OH, City School District, (Energy Conservation
Improvement), 5.40%, 06/15/2003 205,250
- -----------------------------------------------------------------------------
205,000 Berea, OH, GO, 6.95%, 12/01/1998 216,019
- -----------------------------------------------------------------------------
250,000 Blue Ash, OH, GO, 6.50%, 11/01/1999 265,313
- -----------------------------------------------------------------------------
230,000 Bowling Green, OH, City School District, (ETM), 6.90%,
12/01/1998 242,075
- -----------------------------------------------------------------------------
</TABLE>
13
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Butler County, OH, Hospital Facility, (Middletown
Hospital)/(FGIC Insured), 5.25%, 11/15/2000 $258,750
- -------------------------------------------------------------------------------
500,000 Butler County, OH, Sewer System Revenue Bonds, (AMBAC
Insured), 4.80%, 12/01/1998 507,500
- -------------------------------------------------------------------------------
250,000 Centerville, OH, City School District, 6.63%, 12/01/1999 265,625
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, 6.75%, 12/01/2001 276,250
- -------------------------------------------------------------------------------
250,000 Cincinnati, OH, Street Improvement, 7.00%, 12/01/1999 269,688
- -------------------------------------------------------------------------------
500,000 Cleveland Heights, OH, (Series B), 5.60%, 12/01/2002 528,750
- -------------------------------------------------------------------------------
200,000 Cleveland, OH, GO, (Series B)/(AMBAC Insured), 6.40%,
10/01/2002 219,250
- -------------------------------------------------------------------------------
500,000 Cleveland, OH, Public Power System, (Series B)/(MBIA
Insured), 5.90%, 11/15/2001 532,500
- -------------------------------------------------------------------------------
200,000 Cleveland, OH, Regional Transit Authority, 4.85%,
12/01/1998 202,250
- -------------------------------------------------------------------------------
268,000 Columbus ,OH, GO, 5.70%, 07/15/2006 274,365
- -------------------------------------------------------------------------------
250,000 Columbus, OH, (Prerefunded), 03/01/99 (@102), 7.00% (g) 269,375
- -------------------------------------------------------------------------------
270,000 Columbus, OH, (Series 2), 5.35%, 05/15/2003 282,825
- -------------------------------------------------------------------------------
500,000 Columbus, OH, (Series B), 6.30%, 01/01/2005 542,500
- -------------------------------------------------------------------------------
750,000 Columbus, OH, (Series C), 4.35%, 09/15/1998 755,625
- -------------------------------------------------------------------------------
250,000 Columbus, OH, City School District, (FGIC Insured),
5.05%, 12/01/2002 255,938
- -------------------------------------------------------------------------------
250,000 Columbus, OH, GO, 6.30%, 04/15/2003 267,500
- -------------------------------------------------------------------------------
250,000 Copley/Fairlawn, OH, City School District, 5.15%,
12/01/2001 259,063
- -------------------------------------------------------------------------------
500,000 Cuyahoga County, OH, (Prerefunded), 1/1/99 (@102), 6.90%
(g) 543,125
- -------------------------------------------------------------------------------
250,000 Cuyahoga County, OH, (Prerefunded), 10/1/98 (@102), 7.00%
(g) 267,188
- -------------------------------------------------------------------------------
500,000 Cuyahoga County, OH, (Series B), 4.50%, 10/01/2000 503,125
- -------------------------------------------------------------------------------
500,000 Cuyahoga County, OH, GO, 5.20%, 11/15/2009 500,000
- -------------------------------------------------------------------------------
200,000 Cuyahoga Falls, OH, GO, (MBIA Insured), 5.40%, 12/01/2006 208,500
- -------------------------------------------------------------------------------
400,000 Delaware, OH, GO, 5.40%, 11/01/2002 410,500
- -------------------------------------------------------------------------------
250,000 Dover, OH, Electric System, (FGIC Insured), 5.50%,
12/01/2007 258,125
- -------------------------------------------------------------------------------
250,000 Dublin, OH, City School District, (FGIC Insured), 6.05%,
12/01/2003 271,875
- -------------------------------------------------------------------------------
250,000 Dublin, OH, City School District, (FGIC Insured), 6.15%,
12/01/2004 274,375
- -------------------------------------------------------------------------------
250,000 Eastlake, OH, GO, 5.00%, 12/01/2004 248,750
- -------------------------------------------------------------------------------
420,000 Euclid, OH, GO, (Prerefunded), 12/1/99 (@102), 7.00% (g) 458,850
- -------------------------------------------------------------------------------
500,000 Euclid, OH, GO, 5.30%, 12/01/2007 513,750
- -------------------------------------------------------------------------------
500,000 Euclid, OH, GO, 5.45%, 12/01/2008 515,625
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Euclid, OH, GO, 6.40%, 12/01/2004 $272,813
- -------------------------------------------------------------------------------
245,000 Fairfield, OH, City School District, (FGIC Insured),
5.65%, 12/01/2006 259,088
- -------------------------------------------------------------------------------
500,000 Findlay, OH, GO, 5.50%, 07/01/2008 514,375
- -------------------------------------------------------------------------------
250,000 Findlay, OH, Sewer System Revenue Bonds, 5.20%,
07/01/2006 253,750
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, (Children's Hospital)/(Series A),
5.80%, 11/01/2010 514,375
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, (Children's
Hospital)/(Series A)/(Prerefunded), 11/1/01 (@102),
6.40% (g) 550,000
- -------------------------------------------------------------------------------
250,000 Franklin County, OH, (Children's Hospital)/(Series A),
6.50%, 05/01/2007 272,188
- -------------------------------------------------------------------------------
285,000 Franklin County, OH, (Convention Authority)/(MBIA
Insured), 5.50%, 12/01/2003 299,250
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, 5.05%, 12/01/2005 513,125
- -------------------------------------------------------------------------------
305,000 Franklin County, OH, GO, (MBIA Insured), 6.00%,
09/01/2006 332,450
- -------------------------------------------------------------------------------
500,000 Franklin County, OH, HRB, (Doctor's Hospital), 5.05%,
12/01/1999 505,000
- -------------------------------------------------------------------------------
550,000 Franklin County, OH, HRB, (Holy Cross Hospital)/(Series
A), 7.20%, 06/01/2000 594,000
- -------------------------------------------------------------------------------
515,000 Gahanna, OH, GO, 5.25%, 06/01/2002 532,381
- -------------------------------------------------------------------------------
580,000 Gahanna, OH, GO, 5.55%, 06/01/2005 607,550
- -------------------------------------------------------------------------------
250,000 Gahanna, OH, (Series A)/(Prerefunded), 06/01/01 (@102),
6.40% (g) 273,438
- -------------------------------------------------------------------------------
250,000 Grandview Heights, OH, 7.10%, 12/01/2006 275,938
- -------------------------------------------------------------------------------
250,000 Grandview Heights, OH, City School District, 5.40%,
12/01/2005 259,063
- -------------------------------------------------------------------------------
300,000 Greene County, OH, Water System, (Series A)/(FGIC
Insured), 5.75%, 12/01/2009 317,250
- -------------------------------------------------------------------------------
300,000 Hamilton County, OH, (Museum Center), 5.95%, 12/01/2002 322,500
- -------------------------------------------------------------------------------
1,000,000 Hamilton County, OH, (Museum Center)/(Prerefunded),
12/1/97
(@103), 7.13% (g) 1,061,430
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Children's Hospital, (BIG Insured),
6.75%, 05/15/2002 515,935
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Children's Hospital, (Series
D)/(FGIC Insured), 4.90%, 05/15/2003 506,250
- -------------------------------------------------------------------------------
250,000 Hamilton County, OH, Children's Hospital, (Series
E)/(MBIA Insured), 4.60%, 05/15/2000 252,813
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Christ Hospital, (Series A)/(FGIC
Insured), 6.50%, 01/01/2002 533,750
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, Hospital Facilities, (Episcopal
Retirement)/(Fifth Third Bank LOC), 5.90%, 01/01/1999 516,875
- -------------------------------------------------------------------------------
95,000 Hamilton County, OH, Sewer System,
(Series A)/(Prerefunded), 6/1/01 (@102), 6.30% (g) 102,838
- -------------------------------------------------------------------------------
195,000 Hamilton County, OH, Sewer System,
(Series A)/(Prerefunded), 6/1/01 (@102), 6.40% (g) 213,281
- -------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$155,000 Hamilton County, OH, Sewer System, (Series A), 6.30%,
12/01/2001 $166,431
- -------------------------------------------------------------------------------
305,000 Hamilton County, OH, Sewer System, (Series A), 6.40%,
12/01/2003 330,925
- -------------------------------------------------------------------------------
500,000 Hamilton County, OH, GO, 4.70%, 12/01/2004 494,375
- -------------------------------------------------------------------------------
390,000 Hamilton, OH, Electric System Revenue Bonds, (Series
A)/(FGIC Insured), 5.10%, 10/15/1999 398,288
- -------------------------------------------------------------------------------
250,000 Hamilton, OH, Gas System, (Series A)/(MBIA Insured),
4.40%, 10/15/2003 245,938
- -------------------------------------------------------------------------------
315,000 Hancock County, OH, GO, 5.20%, 12/01/2008 316,181
- -------------------------------------------------------------------------------
250,000 Hilliard, OH, City School District, (AMBAC Insured),
5.00%, 12/01/2003 256,563
- -------------------------------------------------------------------------------
500,000 Hilliard, OH, City School District, (Series A), 5.35%,
12/01/2004 516,250
- -------------------------------------------------------------------------------
170,000 Hilliard, OH, GO, 5.35%, 12/01/2006 172,975
- -------------------------------------------------------------------------------
180,000 Hilliard, OH, GO, 5.50%, 12/01/2007 187,200
- -------------------------------------------------------------------------------
230,000 Hilliard, OH, GO, 6.75%, 12/01/1998 241,500
- -------------------------------------------------------------------------------
245,000 Indian Hill, OH, Water Works Revenue Bonds, 4.90%,
06/01/2005 247,756
- -------------------------------------------------------------------------------
500,000 Kent State University, OH, (MBIA Insured), 5.30%,
05/01/2010 498,125
- -------------------------------------------------------------------------------
585,000 Kettering, OH, GO, 5.05%, 12/01/2004 592,313
- -------------------------------------------------------------------------------
255,000 Lakewood, OH, City School District, 5.05%, 12/01/2005 259,144
- -------------------------------------------------------------------------------
535,000 Lakewood, OH, GO, 5.85%, 12/01/2002 573,788
- -------------------------------------------------------------------------------
250,000 Lakuta, OH, Local School District, (AMBAC Insured),
6.40%, 12/01/2000 270,000
- -------------------------------------------------------------------------------
500,000 Lorain County, OH, Water Authority, (AMBAC Insured),
4.95%, 10/01/2004 506,875
- -------------------------------------------------------------------------------
275,000 Lyndhurst, OH, (Prerefunded), 12/1/97 (@102), 7.40% (g) 289,765
- -------------------------------------------------------------------------------
200,000 Marysville, OH, Village School, (AMBAC Insured), 6.90%,
12/01/2000 218,500
- -------------------------------------------------------------------------------
300,000 Massillon, OH, City School District, (AMBAC Insured),
4.80%, 12/01/2006 295,875
- -------------------------------------------------------------------------------
265,000 Mentor, OH, (Series A1), 6.80%, 12/01/1998 278,250
- -------------------------------------------------------------------------------
250,000 Mentor, OH, Street Improvement, (Series 1991-A), 6.70%,
12/01/2003 270,000
- -------------------------------------------------------------------------------
500,000 Miami University, OH, 5.40%, 12/01/2005 516,875
- -------------------------------------------------------------------------------
200,000 Miami Valley, OH, Regional Transit Authority, 5.10%,
12/01/2001 204,000
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, (Series A)/ (Prerefunded), 9/1/01,
(@ 100), 6.45% (g) 541,875
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, (Series A)/ (Prerefunded), 9/1/01,
(@ 100), 6.50% (g) 542,500
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, GO, 5.40%, 12/01/2011 504,375
- -------------------------------------------------------------------------------
285,000 Montgomery County, OH, GO, 5.75%, 12/01/2006 296,044
- -------------------------------------------------------------------------------
500,000 Montgomery County, OH, Miami Valley Hospital, (Series
A)/(AMBAC Insured), 6.10%, 11/15/2002 540,625
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$270,000 Montgomery, OH, GO, 5.60%, 12/01/2005 $279,788
- -------------------------------------------------------------------------------
250,000 Muskingum County, OH, Bethesda Hospital Facility, (Connie
Lee Insured), 5.35%, 12/01/2007 255,938
- -------------------------------------------------------------------------------
500,000 Northeast, OH, Regional Sewer District, (AMBAC Insured),
6.40%, 11/15/2003 548,750
- -------------------------------------------------------------------------------
250,000 Norwalk, OH, Water Work Systems, (Series 1996), 5.60%,
04/01/2010 256,563
- -------------------------------------------------------------------------------
235,000 Norwalk, OH, Water Works Systems, (Series 1996), 5.55%,
04/01/2009 242,050
- -------------------------------------------------------------------------------
500,000 Ohio Municipal Electric Generation Agency, (AMBAC
Insured), 4.75%, 02/15/2000 506,875
- -------------------------------------------------------------------------------
500,000 Ohio State Building Authority, (Correction
Facility)/(Series A), 6.50%, 10/01/2004 540,625
- -------------------------------------------------------------------------------
250,000 Ohio State Building Authority, (Data Center)/(Series
A)/(Prerefunded), 10/1/97 (@102), 7.10% (g) 261,433
- -------------------------------------------------------------------------------
500,000 Ohio State Building Authority, (James Rhodes
Center)/(Series A), 6.20%, 06/01/2004 534,375
- -------------------------------------------------------------------------------
125,000 Ohio State Building Authority, (Series A)/ (Prerefunded),
3/1/99 (@102), 7.25%(g) 135,469
- -------------------------------------------------------------------------------
125,000 Ohio State Building Authority, (Series H)/ (Prerefunded),
8/1/99 (@102), 7.25%(g) 136,719
- -------------------------------------------------------------------------------
250,000 Ohio State Capital Facilities, (Series 95A)/ (AMBAC
Insured), 5.80%, 06/01/2003 267,188
- -------------------------------------------------------------------------------
300,000 Ohio State Economic Development, (Sysco Food Service),
6.60%, 12/01/2003 332,625
- -------------------------------------------------------------------------------
445,000 Ohio State Higher Education Facility, (Denison
University), 5.40%, 11/01/2011 442,775
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (John Carroll
University), 5.35%, 10/01/2005 257,500
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (Oberlin College),
4.50%, 10/01/1999 252,188
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (Oberlin College),
5.00%, 10/01/2002 256,563
- -------------------------------------------------------------------------------
555,000 Ohio State Higher Education Facility, (Ohio Northern
University)/(Connie Lee Insured), 4.90%, 05/01/2003 559,163
- -------------------------------------------------------------------------------
200,000 Ohio State Higher Education Facility, (Pooled
Borrowing)/(Banc One LOC), 6.05%, 12/01/1998 207,250
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (University of
Dayton)/(FGIC Insured), 6.10%, 12/01/2001 269,688
- -------------------------------------------------------------------------------
250,000 Ohio State Higher Education Facility, (Xavier
University)/(ETM), 7.10%, 11/01/1998 263,750
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Mental Health)/(Series A),
7.20%, 12/01/1999 257,755
- -------------------------------------------------------------------------------
500,000 Ohio State Public Facilities, (Mental Health)/(Series
A)/(MBIA Insured), 6.75%, 12/01/2001 542,500
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Mental Health)/(Series
A)/(Prerefunded), 06/01/98 (@102), 7.30% (g) 266,250
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series A)/(MBIA Insured),
6.50%, 06/01/2000 268,125
- -------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250,000 Ohio State Public Facilities, (Series B), 6.90%,
06/01/1998 $259,063
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series B)/ (Prerefunded),
5/1/97 (@102), 7.13% (g) 257,895
- -------------------------------------------------------------------------------
250,000 Ohio State Public Facilities, (Series IIB)/ (AMBAC
Insured), 5.70%, 11/01/1999 260,313
- -------------------------------------------------------------------------------
500,000 Ohio State University, (Series A2), 4.85%, 12/01/1998 508,750
- -------------------------------------------------------------------------------
500,000 Ohio State University, (Series A2), 5.30%, 12/01/2001 520,625
- -------------------------------------------------------------------------------
500,000 Ohio State University, (Series A2), 5.75%, 12/01/2009 518,750
- -------------------------------------------------------------------------------
500,000 Ohio State Water Development Authority, (Clean Water
Project)/(MBIA Insured), 5.65%, 06/01/2005 530,625
- -------------------------------------------------------------------------------
650,000 Ohio State Water Development Authority, (Pure Water
Project)/(MBIA Insured), 5.00%, 12/01/1998 663,000
- -------------------------------------------------------------------------------
250,000 Ohio State Water Development Authority,
(Series I)/(Prerefunded), 6/1/98 (@102), 7.10% (g) 265,625
- -------------------------------------------------------------------------------
250,000 Olmstead Falls, OH, Local Scool District, (FGIC Insured),
6.30%, 12/15/2001 272,188
- -------------------------------------------------------------------------------
175,000 Pickerington, OH, Local School District, (FGIC Insured),
4.70%, 12/04/2004 175,438
- -------------------------------------------------------------------------------
250,000 Pickerington, OH, Local School District, (AMBAC Insured),
5.55%, 12/01/2007 260,625
- -------------------------------------------------------------------------------
200,000 Portage County, OH, (AMBAC Insured), 5.20%, 12/01/2001 207,250
- -------------------------------------------------------------------------------
500,000 Rocky River, OH, City Schools District, GO, 5.15%,
12/01/2008 508,750
- -------------------------------------------------------------------------------
200,000 Salem, OH, Sewer System Revenue Bonds, (AMBAC Insured),
6.00%, 02/01/2001 200,228
- -------------------------------------------------------------------------------
250,000 Sandusky County, OH, (AMBAC Insured), 6.65%, 12/01/1998 261,875
- -------------------------------------------------------------------------------
500,000 Solon, OH, GO, 5.25%, 12/01/2007 510,625
- -------------------------------------------------------------------------------
150,000 Solon, OH, GO, 5.65%, 12/01/2005 157,500
- -------------------------------------------------------------------------------
250,000 Solon, OH, GO, 6.55%, 12/01/2000 270,313
- -------------------------------------------------------------------------------
250,000 Solon, OH, GO, 6.65%, 12/01/2001 270,938
- -------------------------------------------------------------------------------
250,000 Solon, OH, Local School District, (ETM), 6.85%,
12/01/2000 272,813
- -------------------------------------------------------------------------------
245,000 South Euclid, OH, Recreational Facilities, 6.15%,
12/01/2000 260,313
- -------------------------------------------------------------------------------
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 271,563
- -------------------------------------------------------------------------------
250,000 Springfield, OH, Local School District, 6.00%, 12/01/2002 268,750
- -------------------------------------------------------------------------------
400,000 State of Ohio, GO, 4.50%, 08/01/2001 404,000
- -------------------------------------------------------------------------------
250,000 State of Ohio, Highway Revenue Bonds, (Series S), 4.50%,
05/15/2000 252,813
- -------------------------------------------------------------------------------
500,000 State Of Ohio, Highway Revenue Bonds, (Series T), 4.80%,
05/15/2001 509,375
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------
<C> <S> <C>
LONG TERM MUNICIPAL SECURITIES (CONTINUED)
- ------------------------------------------------------------------------------
$500,000 Strongsville, OH, GO, 6.70%, 12/01/2011 $552,500
- ------------------------------------------------------------------------------
250,000 Summit County, OH, GO, (MBIA Insured), 5.65%,
12/01/2007 262,500
- ------------------------------------------------------------------------------
500,000 Toledo, OH, Sewer System Revenue Bonds, (Series
A)/(MBIA Insured), 7.25%, 11/15/2000 537,500
- ------------------------------------------------------------------------------
500,000 Troy, OH, GO, 6.25%, 12/01/2011 544,375
- ------------------------------------------------------------------------------
500,000 University of Cincinnati, OH, (MBIA Insured), 5.10%,
06/01/2011 496,250
- ------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (MBIA Insured), 6.40%,
12/01/2003 273,750
- ------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (Series R5), 5.15%,
06/01/2005 252,813
- ------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (Series R9), 5.60%,
06/01/2009 252,500
- ------------------------------------------------------------------------------
250,000 University of Cincinnati, OH, (Series V), 5.25%,
06/01/2008 250,313
- ------------------------------------------------------------------------------
265,000 University of Cincinnati, OH, (Series V), 5.35%,
06/01/2009 264,669
- ------------------------------------------------------------------------------
200,000 Upper Arlington, OH, City School District,
(Prerefunded), 12/1/98 (@102), 6.80% (g) 213,750
- ------------------------------------------------------------------------------
500,000 Vandalia, OH, GO, 5.45%, 12/01/2010 503,750
- ------------------------------------------------------------------------------
175,000 Warren County, OH, Sewer Improvement, (Lower Miami
Valley), 5.25%, 12/01/2008 176,531
- ------------------------------------------------------------------------------
185,000 Warren County, OH, Sewer Improvement, (Lower Miami
Valley), 5.35%, 12/01/2009 186,619
- ------------------------------------------------------------------------------
170,000 Warren County, OH, Sewer System Revenue Bonds, (Series
A)/(Prerefunded), 12/01/2000 (@102), 6.95% (g) 189,125
- ------------------------------------------------------------------------------
400,000 Warren County, OH, Water System Improvement, (P&G
Project), 5.25%, 12/01/2007 406,000
- ------------------------------------------------------------------------------
235,000 Warren County, OH, Water Works, (FGIC Insured), 6.10%,
12/01/2002 253,800
- ------------------------------------------------------------------------------
470,000 Westerville, OH, Water System, 5.90%, 12/01/2004 505,250
- ------------------------------------------------------------------------------
250,000 Worthington, OH, City School District, (FGIC Insured),
5.85%, 06/01/2002 265,938
- ------------------------------------------------------------------------------
250,000 Worthington, OH, City School District, (MBIA Insured),
7.15%, 12/01/2000 273,414
- ------------------------------------------------------------------------------
250,000 Wright State University, (AMBAC Insured), 5.00%,
05/01/2006 251,250
- ------------------------------------------------------------------------------
TOTAL LONG TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $58,053,177) 60,656,079
- ------------------------------------------------------------------------------
SHORT TERM MUNICIPAL SECURITIES - 8.1%
- ------------------------------------------------------------------------------
300,000 Cincinnati Hamilton County, OH, Daily VRDNs, (Kenwood
Office Assoc.)/ (Fuji Bank Ltd. LOC) 300,000
- ------------------------------------------------------------------------------
250,000 Cincinnati, OH, 7.00%, 10/01/1997 256,180
- ------------------------------------------------------------------------------
500,000 Cleveland Heights, OH, GO, (FGIC Insured), 6.75%,
12/01/1997 514,520
- ------------------------------------------------------------------------------
500,000 Clyde, OH, Water Works Revenue Bond, 5.60%, 05/01/1997 502,650
- ------------------------------------------------------------------------------
500,000 Columbus, OH, Weekly VRDNs, (West Deutsche Landesbank
LOC) 500,000
- ------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
Portfolio of Investments
-------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND December 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
SHORT TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$200,000 Dublin, OH, Local School District, (AMBAC Insured)/(ETM),
6.80%, 12/01/1997 $205,896
- -------------------------------------------------------------------------------
270,000 Findlay, OH, GO, 6.70%, 08/01/1997 274,736
- -------------------------------------------------------------------------------
100,000 Franklin County, OH, HRB, Daily VRDNs, (Franciscan
Sister)/(Chase Manhatten LOC) 100,000
- -------------------------------------------------------------------------------
400,000 Hamilton County, OH, Health System, Daily VRDNs,
(Franciscan Health)/(Sumitomo Bank LOC) 400,000
- -------------------------------------------------------------------------------
345,000 Kettering, OH, GO, (ETM), 6.70%, 12/01/1997 354,708
- -------------------------------------------------------------------------------
200,000 Ohio State Air Quality Authority, Daily VRDNs, (Mead
Corp.)/(Deutsche Bank LOC) 200,000
- -------------------------------------------------------------------------------
250,000 Ohio State Building Authority, (Data Center)/(Series
A)/(ETM), 7.00%, 10/01/1997 256,378
- -------------------------------------------------------------------------------
275,000 Ohio State Highway, (Series O), 6.70%, 05/15/1997 278,372
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------
<C> <S> <C>
SHORT TERM MUNICIPAL SECURITIES (CONTINUED)
- ------------------------------------------------------------------------------
$250,000 Ohio State Public Facilities, (Mental Health)/(Series
A)/(MBIA Insured), 6.50%, 06/01/1997 $253,108
- ------------------------------------------------------------------------------
695,000 Ohio State Public Facilities, (Series IIA)/(FSA
Insured), 5.30%, 12/01/1997 705,745
- ------------------------------------------------------------------------------
100,000 Ohio State University, Weekly VRDNs, (Series
85b)/(National Westminster Bank LOC) 100,000
- ------------------------------------------------------------------------------
200,000 Ohio State Water Development Authority, Daily VRDNs
(Mead Corp.)/(Swiss Bank LOC) 200,000
- ------------------------------------------------------------------------------
TOTAL SHORT TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $5,345,308) 5,402,293
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $63,398,485) $66,058,372
- ------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS - 54.4%
- ------------------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 5.4%
$1,000,000 ABN AMRO Bank Notes, 7.25%, 05/31/2005 $1,016,250
1,000,000 Banc One, 7.00%, 07/15/2005 1,002,500
250,000 BankAmerica Corp., 7.75%, 07/15/2002 261,563
250,000 Citicorp, 9.75%, 08/01/1999 269,688
1,000,000 Citicorp, 7.25%, 09/01/2008 1,007,500
500,000 Comerica Bank Notes, 9.75%, 05/01/1999 535,000
500,000 Comerica Bank, Detroit, 5.95%, 09/15/1997 500,920
1,000,000 Keycorp, 6.75%, 03/15/2006 976,250
1,000,000 Mellon Bank, N.A., 6.50%, 08/01/2005 966,250
250,000 Security Pacific Corp., 9.75%, 05/15/1999 268,438
1,000,000 Swiss Bank Corp.--New York, 7.25%, 09/01/2006 1,021,250
- ------------------------------------------------------------------------------
7,825,609
- ------------------------------------------------------------------------------
BASIC INDUSTRY - 1.4%
500,000 Air Products & Chemicals, 8.88%, 08/01/2001 544,375
250,000 Arco Chemical Co., 9.90%, 11/01/2000 277,500
250,000 Weyerhaeuser Co., 9.05%, 02/01/2003 279,375
1,000,000 Worthington Industries, 7.13%, 05/15/2006 1,013,750
- ------------------------------------------------------------------------------
2,115,000
- ------------------------------------------------------------------------------
CAPITAL GOODS - .2%
250,000 Caterpillar, Inc., 9.38%, 07/15/2000 272,500
- ------------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 13.0%
1,500,000 American Home Products, 6.50%, 10/15/2002 1,492,500
1,000,000 Bergen Brunswig Corp., 7.25%, 06/01/2005 1,012,500
1,000,000 Cardinal Health, 6.00%, 01/15/2006 937,500
1,000,000 Carnival Corp., 6.15%, 10/01/2003 963,750
1,000,000 Columbia/HCA Healthcare, 8.85%, 01/01/2007 1,127,500
1,000,000 Darden Restaurants Inc., 6.38%, 02/01/2006 935,000
250,000 Dayton Hudson Corp., 10.00%, 12/01/2000 278,125
750,000 Grand Met Investment Corp., 7.13%, 09/15/2004 761,250
250,000 Great Atlantic & Pacific Tea, Inc., 9.13%, 01/15/1998 253,750
1,000,000 Harvard University, 8.13%, 04/15/2007 1,100,000
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -------------------------------------------------------------------------
CONSUMER GOODS & SERVICES (CONTINUED)
$1,000,000 Hertz Corp., 7.00%, 07/15/2003 $1,005,000
1,000,000 J.C. Penney & Co. Notes, 6.88%, 10/15/2015 935,000
250,000 Limited, Inc., 9.13%, 02/01/2001 267,188
1,000,000 Limited, Inc., 7.80%, 05/15/2002 1,027,500
750,000 May Dept. Stores Co., 9.88%, 06/15/2000 825,938
250,000 Nordstrom, Inc., 8.88%, 02/15/1998 257,500
500,000 Philip Morris Co. Inc., 7.50%, 03/15/1997 501,590
500,000 Philip Morris Co. Inc., 7.63%, 05/15/2002 515,625
1,000,000 Ralston Purina Notes, 9.25%, 10/15/2009 1,158,750
500,000 Scripps Howard, Inc., 7.38%, 12/15/1998 510,000
1,000,000 Service Corp. Int'l., 8.38%, 12/15/2004 1,075,000
250,000 Super Value Stores, Inc., 8.88%, 06/15/1999 263,750
250,000 Universal Corp., 9.25%, 02/15/2001 271,563
1,500,000 V.F. Corp., 7.60%, 04/01/2004 1,526,250
- -------------------------------------------------------------------------
19,002,529
- -------------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - .9%
500,000 Joseph E. Seagram & Sons Inc., 7.00%, 04/15/2008 496,875
500,000 Watts Industries, 8.38%, 12/01/2003 540,625
250,000 Whirlpool Corp., 9.50%, 06/15/2000 272,500
- -------------------------------------------------------------------------
1,310,000
- -------------------------------------------------------------------------
ENERGY- OIL & GAS - .5%
500,000 Consolidated Natural Gas Co., 5.88%, 10/01/1998 497,500
250,000 Pennzoil Co., 9.63%, 11/15/1999 267,813
- -------------------------------------------------------------------------
765,313
- -------------------------------------------------------------------------
FINANCE COMPANIES - 8.3%
1,000,000 Abbey National PLC, 6.69%, 10/17/2005 981,250
750,000 BHP U.S. Finance Corp., 7.00%, 12/01/1997 756,563
1,000,000 Bear Stearns, 6.63%, 01/15/2004 978,750
750,000 Bell Atlantic Financial, 6.63%, 11/30/1997 755,092
1,000,000 CSW Investments, 7.45%, 08/01/2006 1,011,250
1,000,000 Countrywide Funding Corp., 8.25%, 07/15/2002 1,062,500
</TABLE>
17
<PAGE>
Portfolio of Investments
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------
FINANCE COMPANIES (CONTINUED)
$1,000,000 Dean Witter Discover, 6.00%, 03/01/1998 $1,000,000
500,000 Eaton Off Shore Ltd., 9.00%, 02/15/2001 540,625
1,000,000 Ford Motor Credit Corp., 7.75%, 03/15/2005 1,042,500
250,000 International Lease Finance Co., 6.50%, 07/15/1997 251,180
500,000 Kimco Realty, 6.50%, 10/01/2003 489,375
1,000,000 MBNA Corp. Notes, 6.88%, 06/01/2005 981,250
1,000,000 Salomon Brothers, 6.75%, 01/15/2006 945,000
1,300,000 Smurfit Capital, 6.75%, 11/20/2005 1,259,375
- -----------------------------------------------------------------------------
12,054,710
- -----------------------------------------------------------------------------
(H) FOREIGN INDUSTRIAL - 3.5%
1,000,000 Canadian National Railroad, 7.00%, 03/15/2004 996,250
1,000,000 Hydro-Quebec, Canada, 9.75%, 01/15/2018 1,122,500
750,000 Hydro-Quebec, Canada, 7.38%, 02/01/2003 776,250
500,000 Northern Telecom, Ltd., 8.75%, 06/12/2001 540,625
1,000,000 Philips Electronics, 8.38%, 09/15/2006 1,077,500
615,000 Rhone-Poulenc, 7.75%, 01/15/2002 638,831
- -----------------------------------------------------------------------------
5,151,956
- -----------------------------------------------------------------------------
(H) FOREIGN SOVEREIGN - 5.4%
1,000,000 Barcelona City, Spain, 8.13%, 02/15/2005 1,067,500
1,000,000 Gen De Catalunya, 6.38%, 12/15/2007 947,500
500,000 Province of Ontario, Canada, 6.13%, 06/28/2000 496,875
500,000 Province of Ontario, Canada, 5.70%, 10/01/1997 500,000
1,000,000 Province of Ontario, Canada, 6.00%, 02/21/2006 943,750
250,000 Province of Quebec, Canada, 8.80%, 04/15/2003 275,000
1,000,000 Province of Quebec, Canada, 8.63%, 01/19/2005 1,098,750
1,000,000 Republic of Finland, 7.88%, 07/28/2004 1,075,000
1,550,000 Republic of Iceland, 6.13%, 02/01/2004 1,495,750
- -----------------------------------------------------------------------------
7,900,125
- -----------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 8.8%
500,000 Baltimore Gas & Electric Co., 6.63%, 03/15/2008 485,625
1,000,000 Big Rivers Electric, 9.50%, 02/15/2017 1,072,500
1,000,000 Cajun Electric Power, 9.52%, 03/15/2019 1,080,000
500,000 Commonwealth Edison, 9.38%, 02/15/2000 536,875
1,100,000 Duke Power Co., 6.38%, 03/01/2008 1,050,500
200,000 Houston Lighting & Power Co., 6.75%, 11/01/1997 200,000
815,000 Iowa Electric Power & Light, 8.63%, 05/15/2001 873,069
1,300,000 Jersey Central Power & Light, 7.13%, 10/01/2004 1,298,375
1,000,000 Minnesota Power & Light, 7.75%, 06/01/2007 1,032,500
1,000,000 Northwestern Public Services, 7.10%, 08/01/2005 1,012,500
750,000 Orange & Rockland Utilities, Inc., 6.50%, 10/15/1997 752,813
1,000,000 Pennsylvania Power & Light, 6.88%, 02/01/2003 1,007,500
1,000,000 Public Service Electric & Gas, 6.25%, 01/01/2007 938,750
1,000,000 Soyland Power Co-Op, Inc., 9.63%, 09/30/2011 1,055,000
500,000 Western Resources Inc., 7.25%, 07/01/1999 509,375
- -----------------------------------------------------------------------------
12,905,382
- -----------------------------------------------------------------------------
INSURANCE - 3.2%
1,000,000 Lincoln National Corp., 7.25%, 05/15/2005 1,007,500
1,000,000 London Insurance Grp., 6.88%, 09/15/2005 987,500
1,500,000 MBIA, Inc., 9.00%, 02/15/2001 1,621,875
1,000,000 U.S. Life Notes, 6.38%, 06/15/2000 982,500
- -----------------------------------------------------------------------------
4,599,375
- -----------------------------------------------------------------------------
TECHNOLOGY - 1.1%
500,000 International Business Machines, 6.38%, 06/15/2000 498,750
1,000,000 Texas Instruments Notes, 9.25%, 05/15/2003 1,130,000
- -----------------------------------------------------------------------------
1,628,750
- -----------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -----------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------------
TELEPHONE UTIL. & COMMUNICATION CO. - 2.5%
$1,000,000 Comsat Corp., 8.95%, 05/15/2001 $1,082,500
900,000 GTE Corp., 9.10%, 06/01/2003 1,004,625
1,000,000 General Telephone of the Southeast, 7.63%,
07/01/2002 1,013,750
500,000 Southwestern Bell Telephone Co., 6.63%, 04/01/2005 492,500
- -----------------------------------------------------------------------------
3,593,375
- -----------------------------------------------------------------------------
TRANSPORTATION - .2%
250,000 Union Pacific Corp., 9.63%, 12/15/2002 284,375
- -----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $78,106,224) 79,408,999
- -----------------------------------------------------------------------------
GOVERNMENT AGENCIES - 7.6%
4,000,000 Federal National Mortgage Association, 7.93%,
09/20/2006 4,099,800
1,803,231 GNMA Pool Number 345128, 6.50%, 01/15/2024 1,719,268
875,629 GNMA Pool Number 352982, 7.50%, 05/15/2024 875,903
1,799,834 GNMA Pool Number 372962, 7.00%, 03/15/2024 1,759,900
992,660 GNMA Pool Number 373015, 8.00%, 06/15/2024 1,012,823
1,595,707 GNMA Pool Number 391615, 8.50%, 09/15/2024 1,653,053
- -----------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES
(IDENTIFIED COST $11,032,706) 11,120,747
- -----------------------------------------------------------------------------
U.S. TREASURIES - 34.1%
1,000,000 United States Treasury Bond, 9.38%, 02/15/2006 1,203,910
1,000,000 United States Treasury Bond, 8.75%, 08/15/2020 1,232,380
8,000,000 United States Treasury Note, 7.25%, 05/15/2004 8,417,439
8,000,000 United States Treasury Note, 8.00%, 05/15/2001 8,547,279
2,500,000 United States Treasury Note, 7.88%, 08/15/2001 2,665,200
10,000,000 United States Treasury Note, 7.50%, 11/15/2001 10,527,600
1,000,000 United States Treasury Note, 7.50%, 05/15/2002 1,057,400
2,000,000 United States Treasury Note, 6.88%, 03/31/2000 2,044,780
2,500,000 United States Treasury Note, 6.88%, 05/15/2006 2,575,550
6,000,000 United States Treasury Note, 7.13%, 02/28/2000 6,175,254
3,000,000 United States Treasury Note, 7.50%, 02/15/2005 3,206,190
2,000,000 United States Treasury Note, 6.50%, 10/15/2006 2,010,000
- -----------------------------------------------------------------------------
TOTAL U.S. TREASURIES
(IDENTIFIED COST $47,160,212) 49,662,982
- -----------------------------------------------------------------------------
(E) COMMERCIAL PAPER - 3.2%
- -----------------------------------------------------------------------------
4,709,484 Prudential Funding Corp., 5.50%, 01/02/1997 (at
amortized cost) 4,709,484
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $141,008,626) $144,902,212
- -----------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
18
<PAGE>
Portfolio of Investments
-----------------------------
THE MONITOR MORTGAGE SECURITIES FUND December 31, 1996
---------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME December 31, 1996
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------
<C> <S> <C>
LONG TERM OBLIGATIONS - 98.7%
- --------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. - 22.1%
$ 161,473 Pool # 220007, 8.75%, 08/01/2001 $166,747
145,096 Pool # 380059, 9.50%, 10/01/2004 151,353
2,477,958 Pool # C80391, 7.00%, 03/01/2026 2,433,503
2,358,174 Pool # D69575, 7.50%, 03/01/2026 2,364,801
1,944,129 Pool # E65142, 6.50%, 07/01/2011 1,910,107
105,816 Pool # N90034, 9.00%, 11/01/1998 107,563
2,000,000 TBA, 7.00%, 12/01/2026 1,962,480(f)
- --------------------------------------------------------------------------
TOTAL FEDERAL HOME LOAN MORTGAGE CORP.
(IDENTIFIED COST $9,077,052) 9,096,554
- --------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 46.5%
248,893 Pool # 050279, 8.50%, 02/01/2005 259,471
2,514,458 Pool # 250551, 7.00%, 05/01/2026 2,462,283
1,461,428 Pool # 250554, 6.50%, 05/01/2011 1,435,400
1,075,081 Pool # 303161, 7.50%, 01/01/2002 1,096,916
350,793 Pool # 303459, 8.00%, 07/01/2002 360,331
1,419,252 Pool # 303653, 7.00%, 12/01/2025 1,389,803
1,455,952 Pool # 338449, 6.00%, 05/01/2011 1,400,451
1,958,535 Pool # 339112, 6.50%, 03/01/2026 1,869,187
1,850,997 Pool # 339836, 7.00%, 03/01/2026 1,812,589
1,491,786 Pool # 343212, 7.50%, 05/01/2026 1,493,651
2,926,856 Pool # 350237, 7.00%, 08/01/2011 2,924,105
396,631 Pool # 250128, 7.50%, 09/01/2009 403,449
2,252,007 REMIC, FLT, Series 1994-76FA, 6.24%, 04/25/2024 2,253,403
- --------------------------------------------------------------------------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $18,893,951) 19,161,039
- --------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 24.3%
1,904,651 Pool # 200023, 9.50%, 05/15/2018 2,065,956
61,517 Pool # 305936, 8.50%, 04/15/2006 64,381
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------
<C> <S> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
$ 414,388 Pool # 306058, 8.50%, 06/15/2006 $433,553
85,484 Pool # 328651, 8.50%, 05/15/2007 89,438
665,243 Pool # 344961, 7.00%, 06/15/2008 672,933
699,308 Pool # 348112, 7.00%, 06/15/2008 706,084
620,381 Pool # 349379, 7.00%, 05/15/2008 626,393
1,391,825 Pool # 780398, 9.00%, 04/15/2021 1,490,561
945,098 Pool # 780408, 9.00%, 10/15/2022 1,005,640
2,731,982 GNMA II Pool # 2040, 9.00%, 07/20/2025 2,860,905
- ------------------------------------------------------------------------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $9,995,991) 10,015,844
- ------------------------------------------------------------------------------
U.S. TREASURY NOTES - 5.8%
1,250,000 U.S. Treasury Notes, 8.00%, 08/15/1999 1,310,250
1,000,000 U.S. Treasury Notes, 7.88%, 11/15/2004 1,090,580
- ------------------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES
(IDENTIFIED COST $2,339,661) 2,400,830
- ------------------------------------------------------------------------------
TOTAL LONG TERM OBLIGATIONS
(IDENTIFIED COST $40,306,655) 40,674,267
- ------------------------------------------------------------------------------
(B) REPURCHASE AGREEMENT - 5.6%
- ------------------------------------------------------------------------------
2,317,000 Goldman Sachs Co., Inc., dated 12/31/96, 6.75%, due
01/02/97 repurchase price $2,317,869 (collateralized
by FNMA obligations, total par value $2,533,000,
6.09%, 04/01/35; total market value $2,381,105) 2,317,000
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $42,623,655) $42,991,267
- ------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS - 63.9%
- ---------------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 11.0%
$1,000,000 Bank of Montreal, 10.00%, 09/01/1998 $1,060,000
1,000,000 Bankers Trust, 9.20%, 07/15/1999 1,063,750
1,000,000 Barnett Banks, 8.50%, 03/01/1999 1,043,750
1,100,000 Chase Manhattan Corp., 10.00%, 06/15/1999 1,189,375
1,000,000 Chemical NY Corp., 9.75%, 06/15/1999 1,076,250
1,000,000 Citicorp, 9.00%, 04/15/1999 1,056,250
500,000 Comerica Bank Notes, 9.75%, 05/01/1999 535,000
1,000,000 Dominion Bankshares, 9.63%, 06/15/1999 1,070,000
1,000,000 First Chicago, 9.88%, 07/01/1999 1,080,000
500,000 First Fidelity Bancorp, 9.63%, 08/15/1999 538,125
1,000,000 First Security Bank of Utah, 7.88%, 10/15/1999 1,035,000
1,000,000 Golden West Financial, 9.15%, 05/23/1998 1,040,000
500,000 Key Corp., 8.40%, 04/01/1999 520,625
1,000,000 Mellon Corp., 6.30%, 06/01/2000 993,750
500,000 Sovran Financial, 9.75%, 06/15/1999 537,500
- ---------------------------------------------------------------------------
13,839,375
- ---------------------------------------------------------------------------
BASIC INDUSTRY - 1.2%
500,000 duPont (E.I.) de Nemours & Co., 8.65%, 12/01/1997 512,620
1,000,000 WMX Technologies, Inc., 8.25%, 11/15/1999 1,048,750
- ---------------------------------------------------------------------------
1,561,370
- ---------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ---------------------------------------------------------------------
CAPITAL GOODS - .4%
$500,000 Baker Hughes, Inc., 7.63%, 02/15/1999 $510,625
- ---------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 9.6%
1,000,000 American Brands, 9.00%, 06/15/1999 1,060,000
1,000,000 American Home Products, 7.70%, 02/15/2000 1,035,000
1,000,000 Columbia Healthcare, 6.50%, 03/15/1999 1,005,000
1,400,000 Columbia Pictures Ent., 9.88%, 02/01/1998 1,445,500
1,000,000 Cox Communications Inc., 6.38%, 06/15/2000 992,500
1,000,000 Dayton Hudson, 7.50%, 03/01/1999 1,020,000
1,120,000 Dillard Dept. Stores Inc., 8.75%, 06/15/1998 1,159,200
250,000 Dillard Dept. Stores Inc., 9.50%, 01/15/1998 258,125
1,000,000 Pepsico Inc., 6.80%, 05/15/2000 1,012,500
500,000 Philip Morris Inc., 6.38%, 01/15/1998 501,875
1,000,000 Philip Morris, Inc., 7.38%, 02/15/1999 1,017,500
500,000 Scripps Howard Inc., 7.38%, 12/15/1998 510,000
1,000,000 Super Value Stores Inc., 8.88%, 06/15/1999 1,055,000
- ---------------------------------------------------------------------
12,072,200
- ---------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 1.0%
1,250,000 Loews Corp., 8.50%, 04/15/1998 1,284,375
- ---------------------------------------------------------------------
</TABLE>
19
<PAGE>
---------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME (Continued)
SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- ------------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ------------------------------------------------------------------------------
ENERGY-OIL & GAS - 2.9%
$1,000,000 Burlington Resources, 7.15%, 05/01/1999 $1,018,750
1,000,000 Elf Aquitaine, 7.75%, 05/01/1999 1,031,250
1,500,000 Texaco Inc., 9.00%, 11/15/1997 1,537,410
- ------------------------------------------------------------------------------
3,587,410
- ------------------------------------------------------------------------------
FINANCE COMPANIES - 16.1%
1,000,000 American Express Credit, 7.38%, 02/01/1999 1,022,500
1,000,000 American General Finance, 6.88%, 07/01/1999 1,012,500
1,050,000 Aristar Inc., 7.88%, 02/15/1999 1,081,500
1,000,000 Associates Corp. N.A., 8.70%, 01/01/1997 1,000,000
1,200,000 Bear Stearns Co., 7.63%, 09/15/1999 1,234,500
1,250,000 Bell Atlantic Financial, 6.63%, 11/30/1997 1,258,487
1,250,000 BHP U.S. Finance Corp., 7.00%, 12/01/1997 1,260,938
1,000,000 Chrysler Financial Corp., 13.25%, 10/15/1999 1,172,500
500,000 CNA Financial, 8.88%, 03/01/1998 515,000
500,000 CSW Investments, 6.95%, 08/01/2001 501,875
1,000,000 Dean Witter Discover, 6.00%, 03/01/1998 1,000,000
1,000,000 Ford Motor Credit Co., 7.75%, 10/01/1999 1,032,500
1,000,000 General Motors Acceptance Corp., 7.00%, 03/01/2000 1,012,500
1,000,000 Goldman Sachs, 6.88%, 09/15/1999 1,011,250
1,000,000 Household International, 6.00%, 03/15/1999 992,500
1,250,000 IBM Credit Corp., 6.38%, 11/01/1997 1,255,437
1,000,000 International Lease Finance Corp., 5.75%, 07/01/1998 995,000
1,000,000 Lehman Bros. Inc., 7.63%, 08/01/1998 1,018,750
500,000 Morgan Stanley Group, 7.88%, 12/15/1998 515,000
1,000,000 Salomon Inc., 9.38%, 04/15/1998 1,037,500
250,000 Transamerica Finance Corp., 6.75%, 01/15/1998 251,250
- ------------------------------------------------------------------------------
20,181,487
- ------------------------------------------------------------------------------
(H) FOREIGN INDUSTRIAL - 2.2%
1,600,000 Pacific Dunlap Notes, 9.75%, 12/15/2000 1,770,000
1,000,000 Rhone-Poulenc, 6.75%, 10/15/1999 1,006,250
- ------------------------------------------------------------------------------
2,776,250
- ------------------------------------------------------------------------------
(H) FOREIGN SOVEREIGN - 4.8%
1,000,000 Korea Development Bank, 9.25%, 06/15/1998 1,042,500
1,000,000 Montreal Urban Commission, 9.13%, 03/15/2001 1,083,750
1,000,000 Province of Ontario Canada, 5.70%, 10/01/1997 1,000,000
1,500,000 Province of Quebec, 9.38%, 04/01/1999 1,595,625
1,250,000 Republic of Finland, 6.75%, 11/24/1997 1,260,938
- ------------------------------------------------------------------------------
5,982,813
- ------------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 5.2%
500,000 Empire District Electric Co., 5.70%, 05/01/1998 497,500
500,000 Houston Lighting & Power Co., 6.75%, 11/01/1997 500,000
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -------------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES (CONTINUED)
$1,000,000 Iowa Electric Light & Power, 7.60%, 03/01/1999 $1,026,250
1,000,000 National Rural Utilities, 8.50%, 02/15/1998 1,026,250
1,250,000 Orange & Rockland Utilities Inc., 6.50%, 10/15/1997 1,254,688
1,000,000 Southern California Edison, 7.50%, 04/15/1999 1,026,250
1,250,000 Southern California Gas Co., 6.50%, 12/15/1997 1,257,813
- -------------------------------------------------------------------------------
6,588,751
- -------------------------------------------------------------------------------
INSURANCE - 4.1%
1,000,000 Allstate Corp., 5.88%, 06/15/1998 996,250
1,000,000 Continential Corp., 8.25%, 04/15/1999 1,036,250
1,000,000 Torchmark Corp., 9.63%, 05/01/1998 1,041,250
1,000,000 Travelers Inc., 7.75%, 06/15/1999 1,032,500
1,000,000 U.S. Life Notes, 6.38%, 06/15/2000 982,500
- -------------------------------------------------------------------------------
5,088,750
- -------------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION COMPANIES - 2.6%
1,250,000 Cincinnati Bell Inc., 6.70%, 12/15/1997 1,254,688
1,000,000 GTE Corp., 8.85%, 03/01/1998 1,031,250
1,000,000 MCI Communications Corp., 6.25%, 03/23/1999 1,000,000
- -------------------------------------------------------------------------------
3,285,938
- -------------------------------------------------------------------------------
TRANSPORTATION - 2.8%
765,000 Conrail Inc., 9.75%, 06/01/2000 839,588
1,500,000 CSX Corp., 9.50%, 08/01/2000 1,636,872
1,000,000 Union Pacific Corp., 6.25%, 03/15/1999 997,500
- -------------------------------------------------------------------------------
3,473,960
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(IDENTIFIED COST $79,268,830) 80,233,304
- -------------------------------------------------------------------------------
GOVERNMENT BONDS - 31.9%
- -------------------------------------------------------------------------------
GOVERNMENT AGENCIES - 2.4%
3,000,000 Federal National Mortgage Association, 6.70%,
08/10/2001 (identified cost $2,999,124) 3,000,660
- -------------------------------------------------------------------------------
U.S. TREASURIES - 29.5%
36,500,000 United States Treasury Note, 6.63%, 06/30/2001
(identified cost $36,451,919) 37,077,430
- -------------------------------------------------------------------------------
TOTAL GOVERNMENT BONDS 40,078,090
- -------------------------------------------------------------------------------
(E) COMMERCIAL PAPER - 3.1%
- -------------------------------------------------------------------------------
3,840,617 Prudential Funding Corp., 5.50%, 01/02/1997 (at
amortized cost) 3,840,617
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS
(IDENTIFIED COST $122,560,490) $124,152,011
- -------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
20
<PAGE>
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.
(g) Pre-Refunded Security--The maturity date shown represents the pre-refunded
date.
(h) U.S. Dollar denominated.
The following abbreviations are used in these Portfolios of Investments:
ADR--American Depository Receipt HRB--Hospital Revenue Bonds
AMBAC--American Municipal Bond Assurance Corporation
IDA--Industrial Development Authority
BANs--Bond Anticipation Notes IDR--Industrial Development Revenue
BIG--Bond Investors Guaranty LOC--Letter of Credit
ETM--Escrowed to Maturity MBIA--Municipal Bond Investors
Assurance
FGIC--Financial Guaranty Insurance Company
PLC--Public Limited Company
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance REMIC--Real Estate Mortgage
Investment Conduit
GNMA--Government National Mortgage Association
GO--General Obligation SPA--Standby Purchase Agreement
VRDNs--Variable Rate Demand Notes
The categories of investments are shown as a percentage of net assets.
The following is a summary of the financial investment activity for the period
ended December 31, 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 $436,964,245** -- -- -- $435,518,716
Ohio Municipal Money
Market Fund 130,666,891** -- -- -- 130,756,498
U.S. Treasury Money
Market Fund 524,529,925** -- -- -- 522,476,800
Growth Fund 129,038,757 $50,894,374 $52,123,429 $(1,229,055) 180,048,874
Income Equity Fund 118,828,193 53,221,440 53,225,131 (3,691) 172,766,777
Ohio Tax-Free Fund 63,398,485 2,659,887 2,674,309 (14,422) 66,699,499
Fixed Income Securities
Fund 141,008,627 3,893,585 4,713,952 (820,367) 145,889,195
Mortgage Securities Fund 42,623,655 367,612 459,444 (91,832) 41,231,543
Short/Intermediate Fixed
Income Securities Fund 122,560,490 1,591,522 1,710,459 (118,937) 125,514,375
- -------------------------------------------------------------------------------------------------
</TABLE>
**At amortized cost.
(See Notes which are an integral part of the Financial Statements)
21
<PAGE>
Statements of Assets & Liabilities
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
MONITOR MONITOR
MONITOR OHIO MUNICIPAL U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments at value $390,062 $130,667 $252,497
Investments in repurchase 46,902 -- 272,033
agreements
Cash -- -- --
Dividends and interest receivable 148 800 117
Receivable for investments sold -- -- --
Receivable for Fund shares sold 322 37 99
Deferred expenses -- -- --
- ------------------------------------------------------------------------------
Total assets 437,434 131,504 524,746
- ------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased -- 320 --
Payable for Fund shares redeemed 9 -- 1
Payable for dollar roll -- -- --
transactions
Distributions Payable 1,720 354 2,097
Accrued expenses 186 74 171
- ------------------------------------------------------------------------------
Total liabilities 1,915 748 2,269
- ------------------------------------------------------------------------------
NET ASSETS:
Paid-in-capital 435,519 130,756 522,477
Net unrealized appreciation -- -- --
(depreciation) of investments
Accumulated net realized gain -- -- --
(loss) on investments
Undistributed net investment -- -- --
income
- ------------------------------------------------------------------------------
Total Net Assets $435,519 $130,756 $522,477
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSETS:
Trust Shares $337,962 $ 56,654 $474,593
Investment Shares $ 97,557 $ 74,102 $ 47,884
- ------------------------------------------------------------------------------
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 337,962 56,654 474,593
Investment Shares 97,557 74,102 47,884
- ------------------------------------------------------------------------------
Total shares outstanding ($0.001 435,519 130,756 522,477
par value, unlimited shares
authorized)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Investments, at identified cost $436,964 $130,667 $524,530
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
(All numbers in thousands except net asset values)
Statements of Operations
YEAR ENDED DECEMBER 31, 1996
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR MONITOR
MONITOR OHIO MUNICIPAL U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $22,875 $4,165 $23,912
Dividend income -- -- --
- ---------------------------------------------------------------------------------
Total income 22,875 4,165 23,912
- ---------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,268 355 905
Trustees' fees 17 4 15
Administrative personnel and 465 130 495
services fee
Custodian and recordkeeping fees and 237 66 253
expenses
Transfer and dividend disbursing 40 31 35
agent fees and expenses
Fund share registration costs 54 14 73
Auditing fees 48 12 42
Legal fees 20 6 17
Printing and postage 46 11 40
Insurance premiums 29 8 27
Distribution services fees+ 95 65 110
Miscellaneous -- -- --
- ---------------------------------------------------------------------------------
Total expenses 2,319 702 2,012
- ---------------------------------------------------------------------------------
Deduct-
Waiver of investment advisory fees -- (142) --
Waiver of distribution services -- -- (66)
fees+
- ---------------------------------------------------------------------------------
NET EXPENSES 2,319 560 1,946
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME 20,556 3,605 21,966
- ---------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) on -- -- --
investments (identified cost basis)
Net change in unrealized -- -- --
appreciation (depreciation) on
investments
- ---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN -- -- --
(LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------
CHANGE IN NET ASSETS RESULTING FROM $20,556 $3,605 $21,966
OPERATIONS
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
*Computation of Offering price: 100/96 of net asset value.
**Computation of Offering price: 100/98 of net asset value.
+Applicable to Investor shares only.
(See Notes which are an integral part of the Financial Statements)
22
<PAGE>
<TABLE>
<CAPTION>
MONITOR MONITOR MONITOR MONITOR
MONITOR MONITOR OHIO FIXED INCOME MORTGAGE SHORT/INTERMEDIATE
GROWTH INCOME TAX-FREE SECURITIES SECURITIES FIXED INCOME
FUND EQUITY FUND FUND FUND FUND SECURITIES FUND
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$179,933 $172,050 $66,058 $144,902 $40,674 $124,152
-- -- -- -- 2,317 --
-- -- 3 -- -- --
284 -- 522 2,416 264 1,467
-- 796 -- -- 3 --
29 56 200 50 -- --
-- -- -- -- 6 --
- ------------------------------------------------------------------------------------
180,246 172,902 66,783 147,368 43,264 125,619
- ------------------------------------------------------------------------------------
-- -- -- 1,335 -- --
11 -- -- 4 -- 9
-- -- -- -- 1,971 --
-- -- -- -- -- --
186 135 84 140 61 96
- ------------------------------------------------------------------------------------
197 135 84 1,479 2,032 105
- ------------------------------------------------------------------------------------
129,151 119,485 64,014 143,203 64,878 124,277
50,894 53,221 2,660 3,893 368 1,592
-- -- (6) (1,225) (24,014) (378)
4 61 31 18 -- 23
- ------------------------------------------------------------------------------------
$180,049 $172,767 $66,699 $145,889 $41,232 $125,514
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
$175,764 $172,767 $64,799 $144,038 $39,566 $125,514
$ 4,285 -- $ 1,900 $ 1,851 $ 1,666 --
- ------------------------------------------------------------------------------------
$33.97 $30.26 $21.49 $20.94 $8.06 $19.96
$33.96 -- $21.48 $20.95 $8.08 --
- ------------------------------------------------------------------------------------
$33.97 $30.26 $21.49 $20.94 $8.06 $19.96
$35.38* -- $21.92** $21.38** $8.24** --
- ------------------------------------------------------------------------------------
5,175 5,710 3,016 6,879 4,907 6,287
126 88 88 206
- ------------------------------------------------------------------------------------
5,301 5,710 3,104 6,967 5,113 6,287
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
$129,039 $118,828 $63,398 $141,009 $42,624 $122,560
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MONITOR MONITOR MONITOR MONITOR
MONITOR MONITOR OHIO FIXED INCOME MORTGAGE SHORT/INTERMEDIATE
GROWTH INCOME TAX-FREE SECURITIES SECURITIES FIXED INCOME
FUND EQUITY FUND FUND FUND FUND SECURITIES FUND
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 461 $ 1,943 $3,435 $9,922 $3,562 $8,203
3,018 4,938 -- -- -- --
- -------------------------------------------------------------------------------
3,479 6,881 3,435 9,922 3,562 8,203
- -------------------------------------------------------------------------------
1,028 959 314 697 236 627
6 5 2 5 2 5
189 176 69 153 52 138
96 89 35 78 92 70
36 18 31 40 28 21
28 21 14 15 11 13
14 12 5 12 3 11
7 5 2 7 2 5
12 10 4 11 -- 10
10 7 3 9 2 7
10 -- 5 5 10 --
-- -- -- -- 23 --
- -------------------------------------------------------------------------------
1,436 1,302 484 1,032 461 907
- -------------------------------------------------------------------------------
-- -- -- -- (135) --
-- -- -- -- (5) --
- -------------------------------------------------------------------------------
1,436 1,302 484 1,032 321 907
- -------------------------------------------------------------------------------
2,043 5,579 2,951 8,890 3,241 7,296
- -------------------------------------------------------------------------------
8,154 2,817 4 996 (1,934) 80
15,748 16,650 (769) (6,268) 1,547 (2,269)
- -------------------------------------------------------------------------------
23,902 19,467 (765) (5,272) (387) (2,189)
- -------------------------------------------------------------------------------
$25,945 $25,046 $2,186 $3,618 $2,854 $5,107
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
23
<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
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1996 1995 1996 1995 1996 1995 1996 1995
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS OPERATIONS--
Net investment income $ 20,556 $ 19,508 $ 3,605 $ 3,288 $ 21,966 $ 17,495 $ 2,043 $ 1,757
Net realized gain
(loss) on investment
transactions -- -- -- -- -- -- 8,154 13,943
Change in net
unrealized
appreciation
(depreciation) of
investments -- -- -- -- -- -- 15,748 19,016
- ----------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 20,556 19,508 3,605 3,288 21,966 17,495 25,945 34,716
- ----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM--
Net investment income:
Trust Shares (15,979) (15,778) (1,654) (1,796) (19,879) (15,870) (2,017) (1,727)
Investment Shares (4,577) (3,730) (1,951) (1,492) (2,087) (1,625) (40) (39)
Net realized gain on
investments:
Trust Shares -- -- -- -- -- -- (7,963) (13,595)
Investment Shares -- -- -- -- -- -- (192) (348)
DISTRIBUTIONS IN EXCESS
OF--
Net investment income:
Trust Shares -- -- -- -- -- -- -- --
Investment Shares -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Change in net assets
from distributions to
shareholders (20,556) (19,508) (3,605) (3,288) (21,966) (17,495) (10,212) (15,709)
- ----------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS--
Trust Shares:
Proceeds from Shares
Issued 771,826 570,950 93,400 113,680 1,116,651 837,829 29,335 25,209
Reinvestment of
Distributions 37 33 1 2 23 21 3,323 9,679
Cost of Shares Redeemed (730,666) (562,024) (93,303) (96,755) (919,223) (817,246) (15,669) (13,402)
- ----------------------------------------------------------------------------------------------------------
Total Trust Share
Transactions 41,197 8,959 98 16,927 197,451 20,604 16,989 21,486
- ----------------------------------------------------------------------------------------------------------
Investment Shares:
Proceeds from Shares
Issued 135,440 197,369 118,303 91,978 114,039 70,271 483 365
Reinvestment of
Distributions 3,935 2,711 412 389 1,284 1,023 230 379
Cost of Shares Redeemed (133,105) (150,421) (100,077) (74,032) (106,412) (52,711) (584) (714)
- ----------------------------------------------------------------------------------------------------------
Total Investment Share
Transactions 6,270 49,659 18,638 18,335 8,911 18,583 129 30
- ----------------------------------------------------------------------------------------------------------
Change in net assets
from capital share
transactions 47,467 58,618 18,736 35,262 206,362 39,187 17,118 21,516
- ----------------------------------------------------------------------------------------------------------
Change in net assets 47,467 58,618 18,736 35,262 206,362 39,187 32,851 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 $435,519 $388,052 $130,756 $112,020 $ 522,477 $316,115 $180,049 $147,198
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Undistributed net
investment income
included in net assets
at end of period -- -- -- -- -- -- $ 4 $ 19
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
SHARES ISSUED AND
REDEEMED
Trust Shares:
Shares issued 771,826 570,950 93,400 113,680 1,116,651 837,829 897 843
Reinvestment of
distributions 37 33 1 2 23 21 98 316
Shares redeemed (730,666) (562,024) (93,303) (96,755) (919,223) (817,246) (475) (438)
- ----------------------------------------------------------------------------------------------------------
Total Trust Share
Transactions 41,197 8,959 98 16,927 197,451 20,604 520 721
- ----------------------------------------------------------------------------------------------------------
Investment Shares:
Shares issued 135,440 197,369 118,303 91,978 114,039 70,271 15 12
Reinvestment of
distributions 3,935 2,711 412 389 1,284 1,023 7 13
Shares redeemed (133,105) (150,421) (100,077) (74,032) (106,412) (52,711) (18) (24)
- ----------------------------------------------------------------------------------------------------------
Total Investment Share
Transactions 6,270 49,659 18,638 18,335 8,911 18,583 4 1
- ----------------------------------------------------------------------------------------------------------
Net change in Fund share
transactions 47,467 58,618 18,736 35,262 206,362 39,187 524 722
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
24
<PAGE>
<TABLE>
<CAPTION>
MONITOR
MONITOR FIXED SHORT/INTERMEDIATE
MONITOR INCOME MONITOR OHIO INCOME SECURITIES MONITOR MORTGAGE FIXED INCOME
EQUITY FUND TAX-FREE FUND FUND SECURITIES FUND SECURITIES FUND
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1996 1995 1996 1995 1996 1995 1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 5,579 $ 4,900 $ 2,951 $ 2,905 $ 8,890 $ 8,610 $ 3,241 $ 4,224 $ 7,296 $ 7,822
2,817 323 4 (10) 996 (420) (1,934) (10,894) 80 (257)
16,650 27,588 (769) 3,665 (6,268) 13,787 1,547 22,343 (2,269) 8,241
- -------------------------------------------------------------------------------------------------------------
25,046 32,811 2,186 6,560 3,618 21,977 2,854 15,673 5,107 15,806
- -------------------------------------------------------------------------------------------------------------
(5,542) (5,021) (2,861) (2,802) (8,840) (8,491) (3,067) (4,153) (7,408) (7,803)
-- -- (92) (101) (124) (126) (120) (157) -- --
(2,850) -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- (348) -- --
-- -- -- -- -- -- -- (14) -- --
- -------------------------------------------------------------------------------------------------------------
(8,392) (5,021) (2,953) (2,.903) (8,964) (8,617) (3,187) (4,672) (7,408) (7,803)
- -------------------------------------------------------------------------------------------------------------
26,867 11,621 13,886 10,044 22,286 21,053 2,565 1,008 15,023 20,923
2,760 1,669 168 122 3,424 3,324 228 428 3,221 3,294
(15,406) (14,587) (8,388) (10,285) (17,837) (15,230) (15,572) (13,532) (24,380) (23,381)
- -------------------------------------------------------------------------------------------------------------
14,221 (1,297) 5,666 (119) 7,873 9,147 (12,779) (12,096) (6,136) 836
- -------------------------------------------------------------------------------------------------------------
N/A N/A 261 219 186 283 61 78 N/A N/A
N/A N/A 72 82 93 102 84 124 N/A N/A
N/A N/A (565) (583) (516) (368) (476) (2,855) N/A N/A
- -------------------------------------------------------------------------------------------------------------
N/A N/A (232) (282) (237) 17 (331) (2,653) 0 N/A
- -------------------------------------------------------------------------------------------------------------
14,221 (1,297) 5,434 (401) 7,636 9,164 (13,110) (14,749) (6,136) 836
- -------------------------------------------------------------------------------------------------------------
30,875 26,493 4,667 3,256 2,290 22,524 (13,443) (3,748) (8,437) 8,839
141,892 115,399 62,032 58,776 143,599 121,075 54,675 58,423 133,951 125,112
- -------------------------------------------------------------------------------------------------------------
$172,767 $141,892 $66,699 $62,032 $145,889 $143,599 $41,232 $54,675 $ 125,514 $ 133,951
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
$ 61 $ 24 $ 31 $ 34 $ 17 $ 92 -- $ (362) $ 23 $ 135
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
940 477 648 470 1,065 1,011 320 137 752 1057
95 68 8 6 164 159 28 59 162 166
(532) (601) (390) (481) (845) (726) (1,951) (1,786) (1,210) (1,176)
- -------------------------------------------------------------------------------------------------------------
503 (56) 266 (5) 384 444 (1,603) (1,590) (296) 47
- -------------------------------------------------------------------------------------------------------------
N/A N/A 12 10 9 13 8 11 N/A N/A
N/A N/A 3 4 4 5 10 17 N/A N/A
N/A N/A (26) (27) (25) (17) (59) (416) N/A N/A
- -------------------------------------------------------------------------------------------------------------
N/A N/A (11) (13) (12) 1 (41) (388) -- --
- -------------------------------------------------------------------------------------------------------------
503 (56) 255 (18) 372 445 (1,644) (1,978) (296) 47
- -------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
Statement of Cash Flows
YEAR ENDED DECEMBER 31, 1996
(All numbers in thousands)
<TABLE>
<CAPTION>
THE
MONITOR
MORTGAGE
SECURITIES
FUND
- -----------------------------------------------------------------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Investment income received $ 3,822
Payment of operating expenses (312)
Proceeds from sales and maturities of investments 68,098
Purchases of investments (46,266)
Net purchases of short-term investments (719)
- -----------------------------------------------------------------
Cash provided by operating activities 24,623
- -----------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds used in Fund share activity (13,470)
Decrease on payable for dollar roll transactions (8,279)
Distributions paid (2,875)
- -----------------------------------------------------------------
Cash used by financing activities (24,624)
- -----------------------------------------------------------------
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 2,854
Net decrease in investments 21,455
Decrease in interest receivable 260
Decrease in receivable for investments sold 41
Decrease in deferred expenses 4
Increase in accrued expenses 9
- -----------------------------------------------------------------
Cash provided by operating activities $24,623
- -----------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
26
<PAGE>
[This Page Intentionally Left Blank]
27
<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(B)
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR MONEY
MARKET FUND
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 $1.00 0.05 (0.05) $1.00 5.01%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
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 $1.00 0.03 (0.03) $1.00 3.14%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
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 $1.00 0.05 (0.05) $1.00 4.98%
INVESTMENT SHARES
THE MONITOR MONEY
MARKET FUND
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 $1.00 0.05 (0.05) $1.00 4.90%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
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 $1.00 0.03 (0.03) $1.00 3.04%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1993(a) $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 $1.00 0.05 (0.05) $1.00 4.87%
------------------------------------------------------------------------
</TABLE>
(a)Reflects operations for the period from October 19, 1993 (date of initial
public investment) to December 31, 1993.
(b)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c)Computed on an annualized basis.
(d)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)
28
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
--------------------------------------------------------------
NET EXPENSE NET ASSETS,
INVESTMENT WAIVER/REDUCTION/ END OF PERIOD
EXPENSES INCOME REIMBURSEMENT(D) (000 OMITTED)
-------------------------------------------------------------------------------------
<S> <C> <C> <C>
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% 4.90% -- $337,962
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% 3.10% 0.12% $ 56,654
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
0.42% 4.87% -- $474,593
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% 4.80% -- $ 97,557
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% 3.00% 0.12% $ 74,102
0.50%(c) 2.65%(c) 0.16%(c) $ 948
0.52% 3.66% 0.17% $ 20,390
0.53% 5.28% 0.18% $ 38,973
0.52% 4.77% 0.15% $ 47,884
-------------------------------------------------------------------------------------
</TABLE>
29
<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(A)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR GROWTH FUND
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 $30.81 0.40 4.72 5.12 (0.40) (1.56) --
THE MONITOR INCOME EQUITY FUND
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 $27.25 1.00 3.51 4.51 (1.00) (0.50) --
INVESTMENT SHARES
THE MONITOR GROWTH FUND
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 $30.81 0.31 4.73 5.04 (0.33) (1.56) --
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) 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.
(b)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c)This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(d) Average commission rate paid per share for security purchases and sales
during the period. Presentation of the rate is only required beginning in
fiscal 1996.
(See Notes which are an integral part of the Financial Statements)
30
<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(B) EXPENSES INCOME REIMBURSEMENT(C) (000 OMITTED) RATE RATE(D)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(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
(1.96) $33.97 16.72% 0.83% 1.20% -- $175,764 21% $0.0452
(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
(1.50) $30.26 16.88% 0.82% 3.50% -- $172,767 25% $0.0352
(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
(1.89) $33.96 16.43% 1.08% 0.93% -- $ 4,285 21% $0.0452
- -----------------------------------------------------------------------------------------------------------
</TABLE>
31
<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(B)
- ------------------------------------------------------------------------------------------------------------
TRUST SHARES
THE MONITOR OHIO TAX-FREE FUND
<S> <C> <C> <C> <C> <C> <C> <C>
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 $21.77 1.01 (0.28) 0.73 (1.01) -- --
THE MONITOR FIXED INCOME
SECURITIES FUND
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 $21.78 1.34 (0.83) 0.51 (1.35) -- --
THE MONITOR MORTGAGE SECURITIES
FUND
1992(a)(f) $10.00 0.63 0.29 0.92 (0.61) (0.04) --
1993(f) $10.27 1.50 (0.28) 1.22 (1.46) (0.10) --
1994(f) $ 9.93 0.89 (3.19) (2.30) (0.93) -- (0.01)
1995(f) $ 6.69 0.55 1.46 2.01 (0.55) -- (0.06)
1996(f) $ 8.09 0.55 (0.04) 0.51 (0.54) -- --
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME
SECURITIES FUND
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 $20.35 1.17 (0.37) 0.80 (1.19) -- --
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
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 $21.77 0.96 (0.29) 0.67 (0.96) -- --
THE MONITOR FIXED INCOME
SECURITIES FUND
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 $21.78 1.29 (0.83) 0.46 (1.29) -- --
THE MONITOR MORTGAGE SECURITIES
FUND
1992(a)(f) $10.00 0.62 0.28 0.90 (0.60) (0.03) --
1993(f) $10.27 1.47 (0.27) 1.20 (1.43) (0.10) --
1994(f) $ 9.94 0.87 (3.19) (2.32) (0.91) -- (0.01)
1995(f) $ 6.70 0.55 1.46 2.01 (0.55) -- (0.04)
1996(f) $ 8.12 0.53 (0.04) 0.49 (0.53) -- --
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Reflects operations for the period from June 2, 1992 (date of initial
public investment) to December 31, 1992.
(b) 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.
(c)Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(d)This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(e)Computed on an annualized basis.
(f) 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)
32
<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(C) EXPENSES INCOME REIMBURSEMENT(D) OMITTED) RATE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(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%
(1.01) $21.49 3.48% 0.76% 3.49% -- $ 64,799 6%
(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%
(1.35) $20.94 2.56% 0.74% 6.39% -- $144,038 16%
(0.65) $10.27 9.12% 0.58%(e) 10.60%(e) 0.19%(e) $ 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%
(0.54) $ 8.06 6.56% 0.67% 6.86% 0.29% $ 39,566 90%
(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%
(1.19) $19.96 4.08% 0.72% 5.83% -- $125,514 39%
(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%
(0.96) $21.48 3.20% 1.01% 3.24% -- $ 1,900 6%
(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%
(1.29) $20.95 2.32% 0.99% 6.12% -- $ 1,851 16%
(0.63) $10.27 8.97% 0.83%(e) 10.35%(e) 0.44%(e) $ 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%
(0.53) $ 8.08 6.25% 0.92% 6.57% 0.53% $ 1,666 90%
- -----------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
Combined Notes to Financial Statements
DECEMBER 31, 1996
(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
Securities of the money market funds (Money Market, Ohio Municipal Money Market
and U.S. Treasury Money Market) are valued using amortized cost, which
approximates market value. 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, it's the policy of 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 terms of these agreements.
Accordingly, the Funds could receive less than the repurchase price on the sale
of collateral securities.
34
<PAGE>
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.
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, 1996, $87,528 and $24,087 of undistributed
net investment income and accumulated net realized gain (loss) on investments,
respectively, have been reclassified from paid-in-capital in the Mortgage
Securities Fund. In addition, $220,472 has been reclassified from accumulated
net realized gain (loss) on investments to undistributed net investment income.
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, 1996, 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 1996
CARRYFORWARDS CARRYFORWARDS CARRYFORWARDS
TO EXPIRE IN TO EXPIRE IN TO EXPIRE IN
2002 2003 2004
- --------------------------------------------------------------------------
<S> <C> <C> <C>
Ohio Tax-Free $ -- $ 5,772 $ --
Fixed Income 805,002 420,034 --
Mortgage Securities 10,747,726 10,945,577 2,321,082
Short/Intermediate Fixed Income 120,517 256,995 --
- --------------------------------------------------------------------------
</TABLE>
E. DOLLAR ROLL TRANSACTIONS
Mortgage Securities may enter into mortgage "dollar rolls" in which it sells
securities for delivery in the current month and simultaneously contracts with
the same counterparty to repurchase similar (same type, coupon and maturity)
but not identical securities on a specified future date. The Fund would benefit
to the extent of any difference between the price received for the securities
sold and the lower forward price for the future purchase plus any fee income
received. These amounts are included in interest income. The Fund maintains a
segregated account, the dollar value of which meets or exceeds its obligations
with respect to dollar rolls.
F. OTHER
Investment transactions are accounted for on the trade date.
G. 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 financial transactions
which have been settled through the receipt or disbursement of cash. The cash
amount shown in the Statement of Cash Flows is the amount reported as cash in
the Fund's Statement of Assets and Liabilities and represents cash on hand in
its custodian bank account and does not include any short-term investments at
December 31, 1996.
(3) 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
investments 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. SFM has entered into an agreement with The Huntington
Trust Company ("Huntington") pursuant to which Huntington provides certain
administrative services to the Funds. Effective January 11, 1996, SEI Financial
Services Company ("SFS") acts as the Fund's Distributor pursuant to a
distribution agreement.
35
<PAGE>
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 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 provides that Mortgage Securities and U.S. Treasury Money
Market pay 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, SFM 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.
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") provided these
services. 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 fiscal year ended December 31, 1996, certain Officers of the Trust were
Officers of SFM and SFS. Such Officers receive no compensation from the Trust.
(4) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
fiscal year ended December 31, 1996, were as follows:
<TABLE>
<CAPTION>
INVESTMENT SECURITIES
---------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $44,547,668 $31,448,859 $8,133,215
Sales $33,547,822 $26,830,145 $3,643,972
- -----------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $24,828,179 -- $4,422,875
Sales $ 6,933,540 -- $10,497,870
- -----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
---------------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- -----------------------------------------------
<S> <C> <C> <C>
Purchases -- $14,545,625 --
Sales -- $10,118,750 --
- -----------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- -----------------------------------------------
<S> <C> <C> <C>
Purchases $ 2,471,934 $46,265,930 $43,437,930
Sales $13,973,388 $67,431,369 $43,244,414
- -----------------------------------------------
</TABLE>
(5) 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. It is the Fund's policy that
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.
36
<PAGE>
Explanation of the Indices in the Management Discussion & Analysis
Ohio Tax-Free Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBSGO and the LB5GO have been adjusted to reflect
reinvestment of dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the current sales load of 2.00% effective 2/1/93 ($10,000 investment minus
$200 sales load = $9,800). The Fund's performance assumes the reinvestment of
all dividends and distributions. The LBSGO and the LB5GO have been adjusted
to reflect reinvestment of dividends on securities in the index.
+The LBSGO and the LB5GO are not adjusted to reflect sales loads, expenses,
or other fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. These indices are unmanaged.
++The LSMD and LIMD each represent the average of the total returns reported
by all of the mutual funds that Lipper Analytical Services, Inc. has
determined belong in the respective categories, and are not adjusted to
reflect any sales loads. However, these total returns are reported net of
expenses or other fees that the Securities and Exchange Commission requires
to be reflected in a fund's performance.
Fixed Income Securities Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBGCB has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the current sales load of 2.00% effective 2/1/93 ($10,000 investment minus
$200 sales load = $9,800). The Fund's performance assumes the reinvestment of
all dividends and distributions. The LBGCB has been adjusted to reflect
reinvestment of dividends on securities in the index.
+The LBGCB is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The LIIGDF represents the average of the total returns reported by all of
the mutual funds that Lipper Analytical Services, Inc. has determined belong
in that category, and is not adjusted to reflect any sales loads. However,
these total returns are reported net of expenses or other fees that the
Securities and Exchange Commission requires to be reflected in a fund's
performance.
Mortgage Securities Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The ML3-5YUST has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the current sales load of 2.00% ($10,000 investment minus $200 sales load =
$9,800). The Fund's performance assumes the reinvestment of all dividends and
distributions. The ML3-5YUST has been adjusted to reflect reinvestment of
dividends on securities in the index.
+The ML3-5YUST and LMI are not adjusted to reflect sales loads, expenses, or
other fees that the Securities and Exchange Commission requires to be
reflected in the Fund's performance. This index is unmanaged.
++The LUSMF represents the average of the total returns reported by all of
the mutual funds that Lipper Analytical Services, Inc. has determined belong
in that category, and is not adjusted to reflect any sales loads. However,
these total returns are reported net of expenses or other fees that the
Securities and Exchange Commission requires to be reflected in a fund's
performance.
Short/Intermediate Fixed Income Securities Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LIGC and the ML1-5YCT have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+The LIGC, ML1-5YCT and MLI-5YGC are not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires to
be reflected in the Fund's performance. These indices are unmanaged.
++The LSTIGDF represents the average of the total returns reported by all the
mutual funds that Lipper Analytical Services, Inc. has determined belong in
that category, and is not adjusted to reflect any sales loads. However, the
total returns are reported net of expenses or other fees that the Securities
and Exchange Commission requires to be reflected in a fund's performance.
37
<PAGE>
Report of Independent Accountants
To the Shareholders and Trustees of The Monitor Funds:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations, of cash flows (for The Monitor Mortgage Securities Fund) and of
changes in net assets and the financial highlights, present fairly, in all
material respects, the financial position of The Monitor Money Market Fund, The
Monitor Ohio Municipal Money Market Fund, The Monitor U.S. Treasury Money
Market Fund, The Monitor Growth Fund, The Monitor Income Equity Fund, The
Monitor Ohio Tax-Free Fund, The Monitor Fixed Income Securities Fund, The
Monitor Mortgage Securities Fund and The Monitor Short/Intermediate Fixed
Income Securities Fund (constituting The Monitor Funds, hereafter referred to
as the "Trust") at December 31, 1996, and the results of each of their
operations, the cash flows of The Monitor Mortgage Securities Fund, the changes
in each of their net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at December 31, 1996 by correspondence with the custodian and, with
respect to unsettled security transactions, the application of alternative
auditing procedures, provide a reasonable basis for the opinion expressed
above.
Price Waterhouse LLP Columbus, OH February 14, 1997
38
<PAGE>
[This Page Intentionally Left Blank]
39
<PAGE>
[This Page Intentionally Left Blank]
40
<PAGE>
Trustees
David S. Schoedinger
John M. Shary
Richard Sisson, Ph.D
William R. Wise
Officers
David G. Lee
President and Chief Executive Officer
Robert DellaCroce
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
Kevin P. Robins
Vice President and Assistant Secretary
Bradley J. Schram
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.
<PAGE>
SEI Financial Services Company
Distributor
609409107 609409602
609409875 609409842 609409826
609409305 609409701 609409776
609409867 609409404 609409784
609409503 609409834 609409883
609409768 609409800 1400022 (2/97)
