<PAGE>
M O N I T O R F U N D S A N N U A L R E P O R T
December 31, 1997
Trust Shares and Investment Shares
. Monitor Money Market Fund
. Monitor U.S. Treasury Money Market Fund
. Monitor Ohio Municipal Money Market Fund
. Monitor Growth Fund
. Monitor Income Equity Fund
. Monitor Ohio Tax-Free Fund
. Monitor Mortgage Securities Fund
. Monitor Fixed Income Securities Fund
. Monitor Short/Intermediate Fixed Income Securities Fund
[LOGO OF MONITOR FUNDS APPEARS HERE]
<PAGE>
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Message from the Investment Manager
- --------------------------------------------------------------------------------
Dear Shareholder,
I am pleased to present the December 31, 1997 Annual Report to Shareholders of
The Monitor Funds. We hope that you will take a moment to review the Management
Discussion and Analysis section of the report which follows this message. In
this section, we have included an investment performance profile and portfolio
profile for each Monitor Fund, as well as comments from the portfolio managers.
We think that you will find this information useful as you review and plan for
your investment objectives. The complete financial statements for each of The
Monitor Funds, including their portfolios of investments, are on the succeeding
pages.
The U.S. economy was robust throughout most of 1997, and exhibited few signs of
an imbalance which might typically signal a slowdown or eventual problems.
Corporate earnings maintained above average growth rates and the inflation
indices (CPI & GDP deflator) continued to subside. As a result, both the stock
and bond markets provided investors with high returns (30% plus for stocks and
8-14% for a range of bond maturities). Equity returns have exceeded 25% for 3
years in a row, which is unprecedented.
Most observers expect slower economic growth in 1998, largely because of
financial problems and economic weakness in much of Asia and some other
emerging markets. While these problems are material and may pose some risk to
the U.S. economy, corporate earnings and equity values, it is very difficult to
delineate them with any precision. We think they are soluble and we are
maintaining an optimistic view of the long-term outlook.
On behalf of Monitor Funds and The Huntington National Bank, I thank you for
your investment. We are pleased that you have chosen us to help you achieve
your financial goals.
/s/ Norman A. Jacobs
Norman A. Jacobs
President, Trust Division
The Huntington National Bank
1
<PAGE>
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Growth Fund As of 12/31/97
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
The Monitor Growth Fund (The Fund) is managed by two experienced investment
professionals, Phil Farrington and Jim Gibboney. Phil Farrington, Vice
President, is a graduate of Harvard University, and has over thirty years of
investment management experience. Jim Gibboney, Jr., Vice President, is a
graduate of The Ohio State University, with an M.B.A. from Xavier University.
Jim has over twenty years of investment management experience. Here are Phil
and Jim's comments on The Monitor Growth Fund:
"The total return of The Fund in 1997 was 35.37% versus 33.36% for the
Standard & Poor's Composite Price 500 Index ("S&P 500"). Economics played a
large role in the success of the stock market and of The Fund in 1997. Interest
rates fell, GDP and job growth rose; unemployment fell below 5%, and inflation
remained low. Asian currency and stock markets hit an air pocket in the second
half of the year, sending some portfolio managers scrambling to evaluate their
own portfolio exposure to the suddenly tottering Asian tiger.
The Monitor Growth Fund benefited from its generally conservative holdings,
with the highlight of the year coming in December, 1997, when Standard & Poors
announced the addition of Cincinnati Financial (a holding of The Monitor Growth
Fund) to the S&P 500 Index. On that day, Cincinnati Financial stock closed at
$140 per share--a gain of over 25 points in one day--as index funds purchased
shares of this stock in an attempt to match the performance of this index. New
purchases into The Fund include Corning, Inc., Tiffany & Co., Lancaster Colony,
Gillette and Johnson & Johnson.
As we look forward, The Monitor Growth Fund will continue to emphasize those
companies which have superior earnings and dividend records. In the 1998 market
environment, there may be an opportunity to increase our exposure to higher
growth companies such as information technology and software companies as those
valuations recede. For the moment, our emphasis is on financially sound
companies which we expect can weather any economic storm."
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/97
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES++
<S> <C> <C>
QTR 7.62% 7.55%
1-Year Annualized 35.37% 35.04%
3-Year Annualized 27.36% 27.04%
5-Year Annualized 16.95% 16.66%
Annualized Since Incep. 7/3/89 5/1/91
14.37% 14.99%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil).............. $233.6
Net Asset Value (Trust Shares).. $43.48
Number of Issues................ 53
Cash Reserves (%)............... 2.2%
</TABLE>
FIVE LARGEST EQUITY HOLDINGS
<TABLE>
<S> <C>
Pfizer, Inc. 4.5%
Cincinnati Financial Corp. 4.4%
Home Depot 4.4%
Automatic Data Processing, Inc. 3.7%
American Express 3.6%
</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, 1997, 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, 1997, compared to the S&P 500+.
[PERFORMANCE GRAPH TO COME]
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.
++ Total Returns do not reflect the maximum sales load of 4.00%.
2
<PAGE>
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Income Equity Fund As of 12/31/97
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
Jim Buskirk, portfolio manager of The Monitor Income Equity Fund (The Fund),
is the Chief Investment Officer of the Trust division of The Huntington
National Bank, and is responsible for its investment management activities. Jim
has nearly 20 years of expertise in his field, and has managed both personal
and institutional balanced portfolios. 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 26% in 1997 was in line
with its Lipper Equity Income peer group, but lagged behind the 33% gain of the
S&P 500. The reasons for this trailing of that broad index become clear when
one considers that only eight stocks (General Electric, Microsoft, Pfizer,
Bristol-Myers, Wal-Mart, Eli Lilly, Proctor & Gamble and Coca-Cola) in that 500
stock benchmark accounted for 20% 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 two of those eight stocks, General Electric and
Bristol-Myers, positions that were initiated in 1990 when both dividend yields
were much higher. The other six stocks, because of their very low yields, are
not appropriate holdings for this income-oriented stock fund.
Nevertheless, The Fund's 1997 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 17% of total Fund assets. Chase
Manhattan, Fleet Financial, CoreStates Financial and National City were all
good performers last year.
After three consecutive strong years for stock prices, history would suggest
that the odds favor a correction to develop in 1998, but it would seem to need
a combination of weak corporate profits, higher inflation and interest rates,
or a 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) is a continuation of the steady dividend increases that have
benefitted The Fund's shareholders through the years. Last year, total annual
dividends of $1.04 per share were earned in The Fund, up from $1.00 per share
in 1996, and $0.96 in 1995. In fact, dividend growth in The Fund has averaged
6% per year over the past six years. We will continue to manage The Fund with
the intent of continuing that trend."
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/97
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES++
<S> <C> <C>
QTR 4.46% 4.40%
1-Year Annualized 25.99% --
3-Year Annualized 23.93% --
5-Year Annualized 15.68% --
Annualized Since Incep. 11.83% 26.59%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $214.9
Net Asset Value (Trust Shares). $36.30
30-Day SEC Yield (%)........... 2.85%
Number of Issues............... 48
Cash Reserves (%).............. 0.5%
</TABLE>
FIVE LARGEST EQUITY HOLDINGS
<TABLE>
<S> <C>
CoreStates Financial Corp. 4.5%
General Electric Co. 3.7%
Fleet Financial Group, Inc. 3.5%
Monsanto Co. 3.3%
Chase Manhattan Corp. 3.3%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR INCOME
EQUITY FUND--INVESTMENT AND TRUST SHARES
The graph below illustrates the hypothetical investment of $10,000 in The
Fund--Investment Shares from May 1, 1997 (commencement of operations) to
December 31, 1997, compared to the Standard & Poor's Composite Stock Price 500
Index ("S&P 500")+ and The Fund--Trust Shares from July 3, 1989 (commencement
of operations) to December 31, 1997, compared to the S&P 500+.
[PERFORMANCE GRAPH TO COME]
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 5.50% ($10,000 investment minus $550 sales load =
$9,450). 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.
++ Total Returns do not reflect the maximum sales load of 5.50%
3
<PAGE>
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Ohio Tax-Free Fund As of 12/31/97
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
Bill Doughty, Vice President, has over 25 years of investment management
experience and heads our fixed income trading area. Bill is a graduate of
Franklin University, and holds an M.B.A. from The University of Dayton. Bill
has managed The Monitor Ohio Tax Free Fund (The Fund) since its inception in
1988.
"For the fiscal year ended December 31, 1997, the total return of The Monitor
Ohio Tax Free Fund was 6.11% for trust shares and 5.88% for investment class,
versus the Lipper Short/Municipal Average of 4.96% and the Lipper Intermediate
Municipal Average of 8.68%. It should be noted that neither of these indices
are subject to the same portfolio maturity, geographic or credit quality
restrictions of The Fund.
The Monitor Ohio Tax Free Fund offers clients an opportunity to invest in
securities which are exempt from Federal and Ohio income taxes with an average
maturity of four to seven years, and may invest in obligations with a remaining
maturity of up to fifteen years. Under normal market conditions, The Fund must
invest at least 80% of its assets in Ohio tax-exempt securities which are rated
in the top four categories by an NRSRO(s), a nationally recognized statistical
rating organization or, if not rated, of comparable quality as determined by
Huntington.
The Fund is 100% invested in Ohio securities with no issue representing more
than 5% of the portfolio. The overall credit quality of the Fund is AA2. In
1998, we expect to keep the average life of the portfolio around six years.
This will be accomplished by investing new cash in the ten to fifteen year
securities, or by selling shorter maturities when appropriate."
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/97
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES++
<S> <C> <C>
QTR 1.82% 1.72%
1-Year Annualized 6.11% 5.88%
3-Year Annualized 6.93% 6.68%
5-Year Annualized 5.18% 4.92%
Annualized Since Incep. 10/18/88 5/1/91
6.00% 5.43%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $ 65.8
Net Asset Value (Trust Shares). $21.74
30-Day SEC Yield (%)........... 3.68%
Number of Issues............... 181
Average Maturity (Yrs.)........ 5.5
Cash Reserves (%).............. 3.0%
</TABLE>
GROWTH OF $10,000 INVESTED IN THE MONITOR OHIO
TAX-FREE FUND--INVESTMENT AND TRUST SHARES
The graphs below illustrates the hypothetical investment of $10,000 in The
Fund -- Investment Shares from May 1, 1991 (commencement of operations) to
December 31, 1997, 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, 1997,
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 35.
[PERFORMANCE GRAPH TO COME]
[PERFORMANE GRAPH TO COME]
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.
++ Total Returns do not reflect the maximum sales load of 2.00%
4
<PAGE>
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Fixed Income Securities Fund As of 12/31/97
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
Steve Geis, Vice President, is the senior fixed income manager of the Trust
Division, and manages both The Monitor Fixed Income Securities Fund and The
Monitor Short/Intermediate Fixed Income Securities Fund. Steve, a graduate of
The College of Wooster, received his M.B.A. from The University of Dayton and
his J.D. from Capital University. Here are Steve's comments on The Monitor
Fixed Income Securities Fund (The Fund):
"For the fiscal year ended December 31, 1997, The Monitor Fixed Income
Securities Fund (Trust Shares) had a total return of 8.83% compared with 9.76%
for the Lehman Brothers Government/Corporate Bond Index. The Fund's present
average maturity is 7.8 years with a duration of 5.3 years, and is currently
comprised of approximately 59% corporate bonds; 38% U.S. government bonds; and
3% commercial paper.
After spiking up during the first several months of the year, interest rates
generally fell through the remainder of 1997. This had a more pronounced effect
on longer term maturities (five years and out) than on shorter term
obligations. As we moved into 1998, long term interest rates temporarily fell
below their twenty year historical lows reached back in 1993.
Our 1997 investment strategy emphasized a high quality orientation, a
laddered distribution of maturities, and a high degree of industry and per
issuer diversification. We concentrated on higher yielding corporate bonds
early in the year. As spreads between corporates and U.S. Government issues
narrowed, we shifted our emphasis to U.S. Treasury obligations."
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/97
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES++
<S> <C> <C>
QTR 2.75% 2.69%
1-Year Annualized 8.83% 8.54%
3-Year Annualized 9.60% 9.32%
5-Year Annualized 6.73% 6.46%
Annualized Since Incep. 7/3/89 5/1/91
7.85% 7.60%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $155.0
Net Asset Value (Trust Shares). $21.41
30-Day SEC Yield (%)........... 5.73%
Number of Issues............... 114
Average Maturity (Yrs.)........ 7.8
Cash Reserves (%).............. 2.5%
</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, 1997, 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, 1997, compared to the Lehman Brothers
Government/Corporate Bond Index ("LBGCB")+ and the Lipper Intermediate
Investment Grade Debt Fund Average ("LIIGDF")++
For explanation of indices and bond ratings, please refer to page 35.
[PERFORMANE GRAPH TO COME]
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.
++ Total Returns do not reflect the maximum sales load of 2.00%
[PIE CHART APPEARS HERE]
Fund Composition
as of 12/31/97
U.S. Govt. 38%
Baa 13%
Aa 7%
Aaa 2%
Cash
Equivalents 3%
A 37%
5
<PAGE>
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Mortgage Securities Fund As of 12/31/97
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
The Monitor Mortgage Securities Fund (The Fund) is managed by Piper Capital
Management of Minneapolis, Minnesota on behalf of the Trust division of The
Huntington National Bank. Worth Bruntjen and Bruce Salvog served as co-managers
of The Fund during 1997. Worth has participated in the management of The
Mortgage Securities Fund since its inception in 1991. Bruce, a graduate of
Harvard University, heads up the Core Fixed Income Team at Piper Capital
Management.
"The Monitor Mortgage Securities Fund (Trust Shares) had a total return of
8.77% for the year ended December 31, 1997 as included in the Financial
Highlights. This compares with the Lehman 15 year Mortgage at 9.49%.
The combination of our duration, structure and sector strategies helped The
Monitor Mortgage Securities Fund perform in line with its benchmarks and with
the Lipper Mortgage Average for the year (8.58%). First, we have maintained a
long to neutral duration strategy during 1997, and this approach contributed
positively during the summer rally. Our investments in mortgage pass-through
securities with comparably low 6 1/2% and 7% coupons helped avoid prepayments,
and also helped keep The Fund duration on target even as interest rates fell.
Looking forward, we are continuing to steer a neutral course between domestic
inflationary pressures and international deflationary forces, pending a market
move outside the recent trading range. Market rates are currently causing even
lower coupon mortgages securities to prepay faster. We are evaluating
alternative mortgage securities to reduce any further increase in prepayments."
--------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/97
<TABLE>
<CAPTION>
TRUST INVESTMENT
SHARES SHARES++
<S> <C> <C>
QTR 2.20% 2.25%
1-Year Annualized 8.77% 8.54%
3-Year Annualized 14.97% 14.78%
5-Year Annualized 5.28% 5.10%
Annualized Since Incep. 6/2/92 6/2/92
6.39% 6.19%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil).............. $38.1
Net Asset Value (Trust Shares).. $8.24
30-Day SEC Yield (%)............ 6.16%
Number of Issues................ 33
Cash Reserves (%)............... 5.3%
</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, 1997, compared to the Lipper U.S. Mortgage Fund
Average ("LUSMF")++ and the Lehman Mortgage-Backed Index ("LMI")+.
For explanation of indices, please refer to page 35.
[PERFORMANCE GRAPH TO COME]
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.
++Total returns do not reflect the maximum sales load of 2.00%
6
<PAGE>
- --------------------------------------------------------------------------------
Short/Intermediate Fixed Income Securities Fund As of 12/31/97
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
Steve Geis, Vice President, is the senior fixed income manager of the Trust
Division, and manages both The Monitor Fixed Income Securities Fund and The
Monitor Short/Intermediate Fixed Income Securities Fund. Steve, a graduate of
The College of Wooster, received his M.B.A. from The University of Dayton and
his J.D. from Capital University. Here are Steve's comments on The Monitor
Short/Intermediate Fixed Income Securities Fund (The Fund):
"For the fiscal year ended December 31, 1997, the total return of The Monitor
Short/Intermediate Fixed Income Securities Fund was 6.56% (Trust Shares). This
compares with 7.87% for the Lehman Intermediate Government/Corporate Index and
7.16% for the Merrill Lynch 1-5 Year Government/Corporate Index.
After spiking up during the first several months of the year, interest rates
generally fell through the remainder of 1997. This had a more pronounced effect
on longer term maturities (five years and out) than on shorter term
obligations. As we moved into 1998, long term interest rates temporarily fell
below their twenty year historical lows reached back in 1993.
Our 1997 investment strategy emphasized a high quality orientation, a
laddered distribution of maturities, and a high degree of industry and per
issuer diversification. We concentrated on higher yielding corporate bonds
early in the year. As spreads between corporates and U.S. Government issues
narrowed, we shifted our emphasis to U.S. Treasury obligations."
- --------------------------------------------------------------------------------
INVESTMENT PERFORMANCE PROFILE
TOTAL RETURNS (%)
Period Ending 12/31/97
<TABLE>
<CAPTION>
TRUST SHARES
<S> <C>
QTR 1.72%
1-Year Annualized 6.56%
3-Year Annualized 7.75%
5-Year Annualized 5.88%
Annualized Since Incep. (7/3/89) 7.22%
</TABLE>
PORTFOLIO PROFILE
<TABLE>
<S> <C>
Net Assets ($ mil)............. $126.8
Net Asset Value (Trust Shares). $20.04
30-Day SEC Yield (%)........... 5.51%
Number of Issues............... 81
Average Maturity (Yrs.)........ 2.8
Cash Reserves (%).............. 2.5%
</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, 1997, 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 and bond ratings, please refer to page 35.
[PERFORMANE GRAPH TO COME]
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.
[PIE CHART APPEARS HERE]
Fund Composition
as of 12/31/97
A 43%
Cash
Equivalents 3%
U.S. Govt. 37%
Baa 15%
7
<PAGE>
- --------------------------------------------------------------------------------
Portfolio of Investments
- --------------------------------------------------------------------------------
-------------------------------------
THE MONITOR MONEY MARKET FUND December 31, 1997
<TABLE>
- -------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------
<C> <S> <C>
(A) COMMERCIAL PAPER - 90.8%
- -------------------------------------------
AGRICULTURE - 1.8%
$5,000 Cargill Inc., 5.50%,
01/23/98 $4,983
5,000 Cargill Inc., 5.57%,
02/11/98 4,968
- -------------------------------------------
9,951
- -------------------------------------------
AUTOMOTIVE - 2.6%
5,000 Daimler Benz N.A.,
5.53%, 01/20/98 4,985
5,000 Daimler Benz N.A.,
5.73%, 02/20/98 4,960
5,000 Daimler Benz N.A.,
5.70%, 02/25/98 4,957
- -------------------------------------------
14,902
- -------------------------------------------
BANKING - 3.5%
5,000 J P Morgan & Co.,
5.68%, 03/16/98 4,942
5,000 National City Credit
Corp., 5.65%, 02/25/98 4,957
5,000 National City Credit
Corp., 5.65%, 03/04/98 4,951
5,000 Toronto Dominion
Holdings, 5.50%,
01/07/98 4,995
- -------------------------------------------
19,845
- -------------------------------------------
BUSINESS EQUIPMENT & SERVICES - 1.8%
5,000 Hewlett Packard, 5.90%,
01/07/98 4,995
5,000 Pitney Bowes Credit
Corp., 5.50%, 01/14/98 4,990
- -------------------------------------------
9,985
- -------------------------------------------
CHEMICALS - 7.1%
5,000 Air Products &
Chemicals, 6.00%,
01/07/98 4,995
5,000 du Pont (E.I.) de
Nemours & Co., 5.64%,
02/04/98 4,973
5,000 du Pont (E.I.) de
Nemours & Co., 5.64%,
03/03/98 4,952
5,000 du Pont (E.I.) de
Nemours & Co., 5.67%,
03/05/98 4,950
10,000 Monsanto Co., 6.66%,
01/02/98 9,998
5,000 U.S. Borax & Chemicals
Inc., 5.60%,
01/20/98(g) 4,985
5,000 U.S. Borax & Chemicals
Inc., 5.75%,
03/03/98(g) 4,951
- -------------------------------------------
39,804
- -------------------------------------------
CONSUMER PRODUCTS - 4.5%
10,000 Abbott Labs Inc.,
5.63%, 01/05/98 9,994
5,399 Proctor & Gamble Co.,
5.62%, 01/16/98 5,386
5,000 Proctor & Gamble Co.,
5.52%, 01/26/98 4,981
5,000 Proctor & Gamble Co.,
5.63%, 02/03/98 4,974
- -------------------------------------------
25,335
- -------------------------------------------
DIVERSIFIED - 2.4%
7,500 Emerson Electric Co.,
5.65%, 01/15/98 7,484
6,000 General Electric Co.,
5.51%, 01/12/98 5,990
- -------------------------------------------
13,474
- -------------------------------------------
ELECTRONICS - 5.4%
5,000 Motorola Inc., 5.65%,
02/02/98 4,975
5,000 Motorola Inc., 5.53%,
01/12/98 4,992
5,725 Motorola Inc., 5.52%,
01/26/98 5,703
5,000 Siemens Capital Corp.,
5.59%, 02/09/98 4,970
5,000 Siemens Capital Corp.,
5.61%, 02/09/98 4,970
5,000 Siemens Capital Corp.,
5.61%, 02/13/98 4,966
- -------------------------------------------
30,576
- -------------------------------------------
ENTERTAINMENT - 3.5%
5,000 Walt Disney Co., 5.48%,
01/13/98 4,991
5,000 Walt Disney Co., 5.52%,
01/15/98 4,989
5,000 Walt Disney Co., 5.63%,
02/17/98 4,963
5,000 Walt Disney Co., 5.56%,
02/18/98 4,963
- -------------------------------------------
19,906
- -------------------------------------------
FINANCIAL - 8.8%
10,000 American Express Credit
Corp., 5.76%,
01/08/98(b) 10,000
15,000 Ford Motor Credit Co.,
6.12%, 01/02/98(b) 15,000
5,000 IBM Credit Corp.,
5.48%, 01/06/98 4,996
5,000 IBM Credit Corp.,
5.51%, 01/06/98 4,996
5,000 IBM Credit Corp.,
5.57%, 02/18/98 4,963
5,000 Xerox Credit Corp.,
5.70%, 01/07/98 4,995
5,000 Xerox Credit Corp,
5.65%, 03/12/98 4,945
- -------------------------------------------
49,895
- -------------------------------------------
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
- -------------------------------------------
FOOD & BEVERAGE - 5.6%
$7,000 Anheuser Busch Co.,
5.50%, 01/14/98 $6,986
5,000 Anheuser Busch Co.,
5.55%, 01/16/98 4,989
5,000 Anheuser Busch Co.,
5.66%, 02/27/98 4,955
5,000 Coca-Cola Inc., 5.50%,
01/13/98 4,991
5,000 Coca-Cola Inc., 5.50%,
01/21/98 4,985
5,000 Coca-Cola Inc., 5.56%,
02/10/98 4,969
- -------------------------------------------
31,875
- -------------------------------------------
FOOD PRODUCTS - 8.3%
10,000 Campbell Soup Co.,
5.50%, 01/05/98 9,994
5,000 Campbell Soup Co.,
5.51%, 01/29/98 4,979
7,000 Heinz H. J., Co.,
5.72%, 01/15/98 6,984
5,000 Heinz H. J., Co.,
5.60%, 02/23/98 4,959
10,000 Hershey Foods, 5.82%,
01/26/98 9,960
5,000 Hershey Foods, 5.61%,
01/30/98 4,977
5,000 Kellogg Co.,
5.70%,01/27/98 4,979
- -------------------------------------------
46,832
- -------------------------------------------
FUNDING CORP - 2.8%
5,000 A I G Funding Corp.,
5.80%, 01/06/98 4,996
6,000 New Center Asset Trust,
5.78%, 02/17/98 5,955
5,000 New Center Asset Trust,
5.84%, 03/17/98(b) 5,000
- -------------------------------------------
15,951
- -------------------------------------------
INSURANCE - 6.9%
7,000 A I Credit Corp.,
5.60%, 01/23/98 6,976
5,165 Met Life Funding Corp.,
5.68%, 01/22/98 5,148
5,000 Met Life Funding Corp.,
5.74%, 02/13/98 4,966
5,000 Met Life Funding Corp.,
5.75% 02/19/98 4,961
7,000 USAA Capital Corp.,
5.73%, 01/20/98 6,979
5,000 USAA Capital Corp.,
5.63%, 02/17/98 4,963
5,000 USAA Capital Corp.,
5.75%, 03/05/98 4,950
- -------------------------------------------
38,943
- -------------------------------------------
OIL & GAS - 4.4%
5,000 Amoco Co., 5.47%,
01/07/98 4,995
5,000 Amoco Co., 5.52%,
01/16/98 4,989
5,000 Atlantic Richfield,
5.47%, 01/28/98 4,979
5,000 Atlantic Richfield,
5.54%, 01/30/98 4,978
5,000 Shell Oil Co., 5.85%,
01/09/98 4,994
- -------------------------------------------
24,935
- -------------------------------------------
PHARMACEUTICALS - 1.1%
6,000 Schering-Plough Corp.,
5.72%, 03/19/98 5,927
- -------------------------------------------
PRINTING & PUBLISHING - 6.6%
10,000 Dow Jones Co., 6.03%,
01/09/98(g) 9,987
7,000 Gannett Co., 5.90%,
01/13/98(g) 6,986
8,300 Gannett Co., 5.75%,
01/16/98 8,280
7,000 McGraw Hill Co., 5.67%,
03/09/98 6,926
5,000 R R Donnelley & Sons,
5.70%, 02/03/98(g) 4,974
- -------------------------------------------
37,153
- -------------------------------------------
SOVEREIGN GOVERNMENT - 5.4%
7,820 Canadian Wheat Board,
5.45%, 01/06/98 7,814
8,000 Canadian Wheat Board,
5.66%, 02/12/98 7,947
5,000 Wool International,
5.48%, 01/27/98 4,980
5,000 Wool International,
5.50%, 01/30/98 4,978
5,000 Wool International,
5.64%, 03/18/98 4,941
- -------------------------------------------
30,660
- -------------------------------------------
TECHNOLOGY - 3.5%
5,000 Electronic Data Systems
Corp., 5.55%,
01/08/98(g) 4,995
5,000 Lucent Technologies,
5.47%, 01/08/98 4,995
5,000 Lucent Technologies,
5.49%, 01/21/98 4,985
5,000 Lucent Technologies,
5.53%, 01/22/98 4,984
- -------------------------------------------
19,959
- -------------------------------------------
</TABLE>
8
<PAGE>
------------------------------------
THE MONITOR MONEY MARKET FUND (Continued)
<TABLE>
- -------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED)
- -------------------------------------------
TELECOMMUNICATIONS - 4.8%
$5,000 A T & T Corp., 5.52%,
02/02/98 $4,975
5,000 A T & T Corp., 5.62%,
02/11/98 4,968
5,000 A T & T Corp., 5.70%,
03/02/98 4,953
7,000 Bell South
Telecommunications,
5.67%, 02/04/98 6,962
5,000 Bell South
Telecommunications,
5.70%, 02/10/98 4,968
- -------------------------------------------
26,826
- -------------------------------------------
TOTAL COMMERCIAL PAPER (AT
AMORTIZED COST) 512,734
- -------------------------------------------
REPURCHASE AGREEMENTS - 9.6%
- -------------------------------------------
14,009 Morgan Stanley Group,
dated 12/31/97,
6.20%,
due 01/02/98,
repurchase price
$14,014,225
(collateralized by
U.S. Treasury
obligations,
total par value
$9,915,000, 12.75%,
11/15/10;
total market value
$14,314,302) 14,009
- -------------------------------------------
</TABLE>
- -------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
- -------------------------------------------
$40,000 Morgan Stanley Group,
dated 12/30/97,
6.05%,
due 01/05/98,
repurchase price
$40,040,333
(collateralized by
U.S. Treasury
obligations,
total par value
$40,000,000, 7.70%,
05/29/07;
total market value
$40,966,491) $40,000
- -------------------------------------------
54,009
- -------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED
COST) $566,743
- -------------------------------------------
</TABLE>
See Notes To Portfolios of Investments.
------------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND December 31,
1997
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO - 99.2%
- -------------------------------------------------------------------------------
$1,120 Allen County, OH, BANs, 4.13%, 11/23/98 $1,122
- -------------------------------------------------------------------------------
1,000 American Municipal Power, Inc., BANs,
4.10%, 12/04/98 1,000
- -------------------------------------------------------------------------------
1,490 Ashland County, OH, IDR, (Landover Properties)/(Banc One
LOC), 4.15%, 11/01/04 1,490
- -------------------------------------------------------------------------------
1,000 Ashland, OH, Sanitary Sewer System Improvement, 3.96%,
03/19/98 1,001
- -------------------------------------------------------------------------------
2,000 Barberton, OH, LSD , Series B, 4.48%, 06/01/98 2,005
- -------------------------------------------------------------------------------
1,500 Berea City, OH, BANs, 4.00%, 10/15/98 1,502
- -------------------------------------------------------------------------------
1,500 Butler County, OH, BANs, 4.25%, 10/22/98 1,505
- -------------------------------------------------------------------------------
2,000 Butler County, OH, HRB, Weekly VRDNs, (Middletown Regional
Hospital)/(Star Bank LOC), 4.10%, 11/01/17 2,000
- -------------------------------------------------------------------------------
1,930 Centerville, OH, Weekly VRDNs, (Bethany Village)/(PNC Bank
OH LOC), 3.80%, 11/01/13 1,930
- -------------------------------------------------------------------------------
1,300 Cincinnati Hamilton, OH, Student Loan Funding Corp., Weekly
VRDNs, (Bank of America LOC),
3.70%, 12/29/98 1,300
- -------------------------------------------------------------------------------
3,200 Cincinnati Hamilton, OH, Daily VRDNs, (Kenwood Office
Association Project)/(Kredietbank N.V. LOC),
4.95%, 09/01/25 3,200
- -------------------------------------------------------------------------------
1,000 Cleveland Heights, OH, BANs, 4.25%, 08/27/98 1,003
- -------------------------------------------------------------------------------
3,000 Columbus, OH, (Westdeutsche Landesbank LOC), 4.05%,
12/01/17 3,000
- -------------------------------------------------------------------------------
1,100 Columbus, OH, BANs, 4.22%, 04/17/98 1,101
- -------------------------------------------------------------------------------
4,700 Columbus, OH, Electric System Revenue, Weekly VRDNs,(Union
Bank Of Switzerland LOC),
3.70%, 09/01/09 4,700
- -------------------------------------------------------------------------------
5,100 Columbus, OH, SSRB, Weekly VRDNs, (Series 1994), 4.10%,
06/01/11 5,100
- -------------------------------------------------------------------------------
4,500 Columbus, OH, Weekly VRDNs, (Westdeutsche Landesbank LOC),
4.05%, 06/01/16 4,500
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<C> <S> <C>
OHIO - (CONTINUED)
- ------------------------------------------------------------------------------
$ 700 Cuyahoga County, OH, (Cleveland Neighborhood)/(Key Bank
LOC), 3.95%, 06/01/02 $ 700
- ------------------------------------------------------------------------------
2,000 Cuyahoga County, OH, HRB, Weekly VRDNs, (Cleveland
Clinic)/(Series B), 3.65%, 01/01/26 2,000
- ------------------------------------------------------------------------------
1,400 Cuyahoga County, OH, IDA, Weekly VRDNs, (Allen Group
Inc.)/(Dresdner Bank AG, NY LOC),
3.60%, 12/01/15 1,400
- ------------------------------------------------------------------------------
995 Cuyahoga County, OH, IDR, (Fogg Centax, 11
Project)/(Equitable Federal LOC), 4.00%, 07/01/99 995
- ------------------------------------------------------------------------------
3,150 Cuyahoga County, OH, IDR, Weekly VRDNs, (Edgecomb
Metals)/(Banque Nationale De Paris LOC), 4.15%, 09/01/09 3,150
- ------------------------------------------------------------------------------
2,000 Cuyahoga County, OH, HRB Weekly VRDNs, (Cleveland, Clinic
Series 1996A)/(Morgan Guaranty LOC), 3.60%, 01/01/26 2,000
- ------------------------------------------------------------------------------
4,100 Cuyahoga County, OH, HRB (University Hospital)/(Dai-Ichi
Kangyo Bank Ltd. LOC), 5.25%, 01/01/16 4,100
- ------------------------------------------------------------------------------
1,500 Dayton, OH, BANs, 3.95%, 09/15/98 1,502
- ------------------------------------------------------------------------------
800 Delaware County, OH, IDR, Weekly VRDNs, (Radiation
Sterilizers)/(Wells Fargo LOC), 4.50%, 12/01/04 800
- ------------------------------------------------------------------------------
1,875 Dover, OH, BANs, 4.15%, 09/10/98 1,878
- ------------------------------------------------------------------------------
1,000 Euclid, OH, BANs, 4.05%, 06/12/98 1,001
- ------------------------------------------------------------------------------
1,090 Euclid, OH, BANs, 4.12%, 07/31/98 1,091
- ------------------------------------------------------------------------------
1,600 Evendale, OH, IDR, Weekly VRDNs, (Shaver Real Estate)/(ABN
AMRO Bank LOC), 3.70%, 09/01/15 1,600
- ------------------------------------------------------------------------------
2,000 Franklin County, OH, HRB, (Series 1996), /(U.S.
Health)/(Morgan Guaranty Trust LOC),
4.10%, 12/01/21 2,000
- ------------------------------------------------------------------------------
1,100 Franklin County, OH, HRB, Weekly VRDNs, (Childrens
Hospital)/(Banc One SPA), 3.85%, 12/01/14 1,100
- ------------------------------------------------------------------------------
3,700 Franklin County, OH, HRB, Weekly VRDNs, (Fransiscan
Sisters)/(Chase Manhattan Bank LOC),
5.00%, 07/01/15 3,700
- ------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO (CONTINUED)
- -------------------------------------------------------------------------------
$2,500 Franklin County, OH, HRB, Weekly VRDNs, (Holy
Cross Health)/(Morgan Guaranty Trust LOC),
4.00%, 06/01/16 $2,500
- -------------------------------------------------------------------------------
750 Franklin County, OH, IDR, Daily VRDNs, (Columbus College
Art Design)/(Bank One LOC),
3.75%, 10/01/11 750
- -------------------------------------------------------------------------------
1,500 Franklin County, OH, Weekly VRDNs, (Dominican
Sisters)/(Fifth Third Bank LOC), 3.70%, 12/01/16 1,500
- -------------------------------------------------------------------------------
1,100 Hamilton County, OH, Daily VRDNs, (Automated Data
Processing Co.), 4.05%, 10/15/12 1,100
- -------------------------------------------------------------------------------
1,750 Hamilton County, OH, Health Care System, Weekly VRDNs,
(West Park)/(Fifth Third Bank LOC),
3.75%, 07/01/17 1,750
- -------------------------------------------------------------------------------
2,000 Hamilton County, OH, HRB, Weekly VRDNs, (Childrens
Hospital)/(Series A)/(PNC Bank LOC),
4.10%, 05/15/17 2,000
- -------------------------------------------------------------------------------
2,000 Hamilton County, OH, HRB, Weekly VRDNs, (Health
Alliance)/(Series B)/(MBIA Insured),
3.70%, 01/01/18 2,000
- -------------------------------------------------------------------------------
500 Hamilton County, OH, HRB, Weekly VRDNs, (Health
Alliance)/(Series A)/(MBIA Insured),
3.65%, 01/01/18 500
- -------------------------------------------------------------------------------
2,000 Highland Heights, OH, BANs, 4.05%, 11/19/98 2,003
- -------------------------------------------------------------------------------
1,000 Hilliard, OH BANs, 4.15%, 09/10/98 1,002
- -------------------------------------------------------------------------------
1,050 Hilliard, OH, BANs, 4.35%, 04/09/98 1,051
- -------------------------------------------------------------------------------
1,325 Lakota, OH, LSD BANs, 4.20%, 06/11/98 1,326
- -------------------------------------------------------------------------------
1,000 Lebanon, OH, BANs, 4.17%, 06/04/98 1,001
- -------------------------------------------------------------------------------
1,820 Lorain County, OH, Weekly VRDNs, (United Methodist Project
A)/(Key Bank LOC), 3.80%, 06/01/22 1,820
- -------------------------------------------------------------------------------
1,825 Lorain County, OH, HRB, Weekly VRDNs, (Elyria United
Methodist)/(Key Bank LOC), 3.80%, 06/01/12 1,825
- -------------------------------------------------------------------------------
1,000 Loveland, OH, GO BANs, 4.11%, 09/10/98 1,001
- -------------------------------------------------------------------------------
1,000 Lyndhurst, OH, BANs, 4.00%, 03/18/98 1,000
- -------------------------------------------------------------------------------
2,000 Mahoning County, OH, HRB (Forum Health Obligation Group
B)/(MBIA Insured), 4.00%, 12/01/27 2,000
- -------------------------------------------------------------------------------
945 Mahoning County, OH, Daily VRDNs, (Series 1992)/ (Copland
Oaks)/(Bank One LOC), 4.15%, 04/01/17 945
- -------------------------------------------------------------------------------
1,260 Marion County, OH, BANs, 4.00%, 02/11/98 1,260
- -------------------------------------------------------------------------------
900 Marion County, OH, Daily VRDNs, (Bank One LOC), 4.15%,
08/01/20 900
- -------------------------------------------------------------------------------
2,000 Mason, OH, EDR, Weekly VRDNs, (Cedar Village Project),
4.12%, 12/01/07 2,000
- -------------------------------------------------------------------------------
1,000 Mason, OH, LSD, BANs, 4.15%, 03/20/98 1,001
- -------------------------------------------------------------------------------
500 Mason, OH, LSD, BANs, 4.45%, 03/20/98 501
- -------------------------------------------------------------------------------
1,000 Montgomery County, OH, HRB, (Miami Valley Series
B)/(Northern Trust LOC), 3.70%, 02/03/98(f) 1,000
- -------------------------------------------------------------------------------
1,000 Morrow County, OH, Daily VRDNs, (Field Container)/(American
National Bank LOC),
4.00%, 12/01/99 1,000
- -------------------------------------------------------------------------------
1,000 Ohio School Districts Cash Flow Borrowing Program, TANs,
4.47%, 06/30/98 1,003
- -------------------------------------------------------------------------------
2,500 Ohio State Air Quality, Cleveland Electric,
3.80%, 3/02/98(f) 2,500
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO (CONTINUED)
- -------------------------------------------------------------------------------
$2,700 Ohio State Air Quality Development Authority, Daily
VRDNs, (Mead Corp.)/(Deutsche Bank LOC),
5.00%, 10/01/01 $2,700
- -------------------------------------------------------------------------------
4,100 Ohio State Development Authority, Daily VRDNs, (Mead
Corp.)/(Swiss Bank LOC), 5.00%, 11/01/15 4,100
- -------------------------------------------------------------------------------
3,200 Ohio State Environmental Improvement, Weekly VRDNs, (USX
Corp.)/(Sanwa Bank LOC),
4.15%, 05/01/11 3,200
- -------------------------------------------------------------------------------
3,200 Ohio State Higher Education Facility, Daily VRDNs,
(Oberlin College)/(Morgan Guaranty Trust LOC),
3.80%, 10/01/15 3,200
- -------------------------------------------------------------------------------
1,000 Ohio State Higher Education Facility, Weekly VRDNs, (Mt.
Vernon Nazarene College)/(National City Bank LOC),
4.28%, 09/01/09 1,000
- -------------------------------------------------------------------------------
1,000 Ohio State Higher Education Facility, Weekly VRDNs,
4.15%, 09/01/17 1,000
- -------------------------------------------------------------------------------
4,250 The Ohio State University, Daily VRDNs,
(Series 1986 B)/(National Westminster Bank PLC LOC),
3.80%, 12/01/06 4,250
- -------------------------------------------------------------------------------
1,975 The Ohio State University, Weekly VRDNs, (Series 1985
B)/(National Westminster Bank PLC LOC),
3.80%, 12/01/01 1,975
- -------------------------------------------------------------------------------
2,525 The Ohio State University, Weekly VRDNs, (Series 1992 B),
3.85%, 12/01/12 2,525
- -------------------------------------------------------------------------------
4,000 Ohio Water Development Authority, Weekly VRDNs,
(Cleveland Electric)/(First Chicago LOC), 4.05%,
07/01/20 4,000
- -------------------------------------------------------------------------------
1,500 Ottawa County, OH, BANs, 4.00%, 02/25/98 1,501
- -------------------------------------------------------------------------------
2,245 Plain City, OH, LSD, BANs, 4.00%, 04/15/98 2,247
- -------------------------------------------------------------------------------
3,000 Sharonville, OH, IDR, Weekly VRDNs, (Edgecomb
Metals)/(Banque Nationale De Paris LOC), 4.15%, 11/01/09 3,000
- -------------------------------------------------------------------------------
1,000 South Euclid, OH, BANs, 4.15%, 04/08/98 1,001
- -------------------------------------------------------------------------------
1,000 Stark County, OH, BANs, 4.10%, 04/15/98 1,001
- -------------------------------------------------------------------------------
1,340 Stowe, OH, BANs, 4.00%, 12/17/98 1,342
- -------------------------------------------------------------------------------
600 Strongsville, OH, BANs, 4.02%, 11/18/98 601
- -------------------------------------------------------------------------------
2,100 Summit County, OH, IDR, Monthly VRDNs,
(Petrarca/Cedarwood)/(Firemans Newark Insured), 4.70%,
04/01/00 2,100
- -------------------------------------------------------------------------------
1,200 Sylvania, OH, LSD, BANs, 4.39%, 12/16/98 1,205
- -------------------------------------------------------------------------------
2,000 Toledo Lucas, OH, 3.70%, 01/15/98 2,000
- -------------------------------------------------------------------------------
1,500 University Of Cincinnati, OH, BANs, 4.04%, 03/19/98 1,501
- -------------------------------------------------------------------------------
1,600 University Of Cincinnati, OH, BANs, 4.24%, 03/19/98 1,601
- -------------------------------------------------------------------------------
925 Vermillion, OH, BANs, 4.30%, 10/29/98 926
- -------------------------------------------------------------------------------
1,000 Warren County, OH, IDR, Weekly VRDNs, (Pioneer,
Industrial)/(Bank of Tokyo-Mitsubishi Bank LOC), 4.10%,
12/01/05 1,000
- -------------------------------------------------------------------------------
700 Wooster, OH, IDR, Weekly VRDNs, (Allen Group)/
(National Bank of Detroit LOC), 3.90%, 12/01/10 700
- -------------------------------------------------------------------------------
TOTAL OHIO (AT AMORTIZED COST) 154,391
- -------------------------------------------------------------------------------
OTHER - 0.4%
- -------------------------------------------------------------------------------
613 Nuveen Tax-Exempt Money Market Fund, Inc. 613
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $155,004
- -------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
10
<PAGE>
------------------
THE MONITOR U.S. TREASURY MONEY MARKET FUND December 31, 1997
<TABLE>
- -------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------
<C> <S> <C>
U.S. TREASURY BILLS - 49.4% (A)
- -------------------------------------------
$10,000 U.S. Treasury Bill,
5.13%, 01/02/98 $9,999
- -------------------------------------------
20,000 U.S. Treasury Bill,
5.13%, 01/08/98 19,980
- -------------------------------------------
20,000 U.S. Treasury Bill,
5.14%, 01/15/98 19,960
- -------------------------------------------
20,000 U.S. Treasury Bill,
4.97%, 01/29/98 19,923
- -------------------------------------------
20,000 U.S. Treasury Bill,
5.05%, 02/05/98 19,902
- -------------------------------------------
40,000 U.S. Treasury Bill,
5.13%, 03/05/98 39,640
- -------------------------------------------
30,000 U.S. Treasury Bill,
5.01%, 03/12/98 29,708
- -------------------------------------------
15,000 U.S. Treasury Bill,
5.26%, 03/26/98 14,816
- -------------------------------------------
20,000 U.S. Treasury Bill,
5.14%, 04/02/98 19,740
- -------------------------------------------
25,000 U.S. Treasury Bill,
5.01%, 04/23/98 24,610
- -------------------------------------------
15,000 U.S. Treasury Bill,
5.07%, 04/30/98 14,749
- -------------------------------------------
20,000 U.S. Treasury Bill,
5.23%, 05/14/98 19,613
- -------------------------------------------
15,000 U.S. Treasury Bill,
5.29%, 05/28/98 14,676
- -------------------------------------------
TOTAL U.S. TREASURY BILLS (AT AM-
ORTIZED COST) 267,316
- -------------------------------------------
REPURCHASE AGREEMENTS - 51.0%
- -------------------------------------------
35,000 Dean Witter Reynolds
Inc., dated 12/31/97,
5.50%, due 01/07/98,
repurchase price
$35,037,431
(collateralized by
U.S. Treasury
obligations,
total par value
$35,444,000, 5.63%,
02/15/06;
total market value
$35,803,978) 35,000
50,000 First Boston Corp.,
dated 12/31/97,
5.90%,
due 01/07/98,
repurchase price
$50,057,361
(collateralized by
U.S. Treasury
obligations,
total par value
$44,793,000, 6.88%,
08/15/25;
total market value
$51,127,010) 50,000
</TABLE>
- -------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENTS (CONTINUED)
- -------------------------------------------
$50,000 Goldman Sachs Co.,
Inc., dated
12/30/97, 5.95%, due
01/06/98, repurchase
price $50,057,847
(collateralized by
U.S. Treasury
obligations, total
par value
$43,665,000, 7.13%,
02/15/23; total
market value
$51,013,001) $50,000
35,000 Lehman Brothers Inc.,
dated 12/29/97,
6.15%,
due 01/05/98,
repurchase price
$35,041,854
(collateralized by
U.S. Treasury
obligations, total
par value
$34,560,000, 5.75%-
6.38%, 01/15/99-
10/31/00; total
market value
$35,726,027) 35,000
50,000 Merrill Lynch & Co.,
Inc., dated
12/29/97, 5.75%, due
01/05/98, repurchase
price $50,055,903
(collateralized by
U.S. Treasury
obligations, total
par value
$49,395,000, 6.63%-
7.50%, 06/30/01-
11/15/16; total
market value
$50,975,633) 50,000
16,323 Morgan Stanley & Co.,
dated 12/31/97,
6.20%, due 01/02/98,
repurchase price
$16,328,622
(collateralized by
U.S. Treasury
obligations, total
par value
$10,980,000, 5.60%,
08/15/13; total
market value
$16,682,738) 16,323
40,000 Smith Barney, Inc.,
dated 12/30/97,
5.90%,
due 01/06/98,
repurchase price
$40,045,889
(collateralized by
U.S. Treasury
obligations, total
par value
$32,310,000, 8.13%,
05/15/21; total
market value
$41,074,478) 40,000
- -------------------------------------------
TOTAL REPURCHASE AGREEMENTS 276,323
- -------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED
COST $543,639) $543,639
- -------------------------------------------
</TABLE>
See Notes To Portfolios of Investments.
---------------------------------------------
THE MONITOR GROWTH FUND December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
(000) (000)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCK - 97.7%
- -----------------------------------------------------
ADVERTISING - 1.6%
75 Interpublic Group of Companies, Inc. $3,736
- -----------------------------------------------------
BASIC INDUSTRY - 0.5%
64 Worthington Industries, Inc. 1,056
- -----------------------------------------------------
BUSINESS SERVICES - 2.5%
38 Cintas Corp. 1,482
100 Cognizant Corp. 4,456
- -----------------------------------------------------
5,938
- -----------------------------------------------------
CAPITAL GOODS - 2.3%
110 Boeing Co. 5,383
- -----------------------------------------------------
CHEMICALS - 6.7%
250 Hanna (M.A.) Co. 6,312
17 Potash Corp. 1,378
200 Sigma Aldrich Corp. 7,950
- -----------------------------------------------------
15,640
- -----------------------------------------------------
CONSUMER NON-DURABLES - 6.0%
100 Colgate-Palmolive Co. 7,350
100 Fortune Brands, Inc. 3,706
30 Gillette Co. 3,013
- -----------------------------------------------------
14,069
- -----------------------------------------------------
CONSUMER PRODUCTS - 14.1%
170 American Greetings Corp. 6,651
20 Lancaster Colony Corp. 1,128
</TABLE>
- -----------------------------------------------------
<TABLE>
MARKET
SHARES VALUE
(000) (000)
- ---------------------------------------------------
<C> <S> <C>
COMMON STOCK (CONTINUED)
- ---------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
72 International Flavors & Fragrances $3,694
169 Mattel, Inc. 6,286
106 Media General Cl. A 4,445
115 Newell Co. 4,887
50 Tiffany & Co. 1,803
50 Wrigley Wm Jr Co. 3,978
- ---------------------------------------------------
32,872
- ---------------------------------------------------
CONTAINERS & PACKAGING - 1.9%
100 Avery Dennison Corp. 4,475
- ---------------------------------------------------
ELECTRICAL EQUIPMENT - 5.5%
30 AMP, Inc. 1,239
71 Emerson Electric Co. 3,996
59 General Electric Co. 4,314
67 Hubbell, Inc. 3,317
- ---------------------------------------------------
12,866
- ---------------------------------------------------
ENERGY - 5.9%
95 Anadarko Petroleum 5,765
100 Schlumberger 8,050
- ---------------------------------------------------
13,815
- ---------------------------------------------------
FINANCIAL - 3.6%
95 American Express 8,479
- ---------------------------------------------------
</TABLE>
11
<PAGE>
-------------------------------------------
THE MONITOR GROWTH FUND (Continued)
<TABLE>
- -------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
<C> <S> <C>
COMMON STOCK (CONTINUED)
- -------------------------------------------------------
FOOD & BEVERAGE - 2.8%
177 PepsiCo, Inc. $6,449
- -------------------------------------------------------
FOOD DISTRIBUTOR/SER. SYSTEM - 1.9%
98 Sysco Corp. 4,479
- -------------------------------------------------------
HEALTH CARE - 0.8%
37 Medtronic, Inc. 1,915
- -------------------------------------------------------
INDUSTRIAL PRODUCTS - 3.9%
30 Illinois Tool Works, Inc. 1,804
75 Nordson Corp. 3,440
258 RPM, Inc. 3,927
- -------------------------------------------------------
9,171
- -------------------------------------------------------
INSURANCE - 6.2%
74 Cincinnati Financial Corp. 10,345
25 American International Group 2,746
7 General RE Corp. 1,484
- -------------------------------------------------------
14,575
- -------------------------------------------------------
PHARMACEUTICALS - 15.6%
31 Pharmacia & Upjohn, Inc. 1,135
19 American Home Products Corp. 1,454
130 Schering-Plough Corp. 8,076
100 Abbott Laboratories 6,556
45 Johnson & Johnson 2,964
55 Merck & Co. 5,844
140 Pfizer, Inc. 10,439
- -------------------------------------------------------
36,468
- -------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------
PRINCIPAL/SHARE MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------
<C> <S> <C>
COMMON STOCK (CONTINUED)
- -------------------------------------------------------
PRODUCER MANUFACTURING - 0.4%
22 Corning, Inc. $817
- -------------------------------------------------------
RETAIL - 7.8%
173 Home Depot 10,156
30 Kohl's Corp.* 2,044
190 Walgreen 5,961
- -------------------------------------------------------
18,161
- -------------------------------------------------------
TECHNOLOGY - 7.1%
16 Computer Sciences Corp.* 1,347
140 Automatic Data Processing, Inc. 8,593
100 Diebold, Inc. 5,062
53 Zero Corp. 1,570
- -------------------------------------------------------
16,572
- -------------------------------------------------------
TELECOMMUNICATIONS - 0.6%
33 AirTouch Communications, Inc.* 1,372
- -------------------------------------------------------
TOTAL COMMON STOCK (IDENTIFIED COST $126,875) 228,308
- -------------------------------------------------------
(A) COMMERCIAL PAPER - 2.2%
5,168 Prudential Funding Corp., 5.70% 01/02/98
(at amortized cost) 5,168
- -------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $132,042) $233,476
- -------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments.
<TABLE>
<CAPTION>
THE MONITOR INCOME EQUITY FUND ------------------------------------
December 31, 1997
MARKET
SHARES VALUE
(000) (000)
- -------------------------------------------------------
<C> <S> <C>
COMMON STOCK - 80.5%
- -------------------------------------------------------
BANKING & FINANCE - 16.6%
65 Chase Manhattan Corp. $7,118
120 CoreStates Financial Corp. 9,607
100 Fleet Financial Group, Inc. 7,494
100 National City Corp. 6,575
110 Ohio Casualty Corp. 4,909
- -------------------------------------------------------
35,703
- -------------------------------------------------------
BASIC INDUSTRY - 8.0%
170 Monsanto Co. 7,140
90 PPG Industries, Inc. 5,141
80 duPont (E.I.) de Nemours & Co. 4,805
- -------------------------------------------------------
17,086
- -------------------------------------------------------
CAPITAL GOODS - .8%
105 Worthington Industries, Inc. 1,732
- -------------------------------------------------------
CHEMICALS - 0.4%
34 Solutia, Inc. 907
- -------------------------------------------------------
CONSUMER DURABLES - 2.7%
120 Ford Motor Co. 5,842
- -------------------------------------------------------
CONSUMER NON-DURABLES - 13.8%
80 American Home Products Corp. 6,120
70 Bristol-Meyers Squibb Co. 6,624
80 Clorox Co. 6,325
70 Fortune Brands, Inc. 2,594
</TABLE>
<TABLE>
- -------------------------------------------------------
MARKET
SHARES VALUE
(000) (000)
- -------------------------------------------------------
<C> <S> <C>
COMMON STOCK (CONTINUED)
- -------------------------------------------------------
CONSUMER NON-DURABLES - (CONTINUED)
70 Gallaher Group PLC-ADR $1,496
116 Pharmacia & Upjohn, Inc. 4,249
60 RJR Nabisco 2,250
- -------------------------------------------------------
29,658
- -------------------------------------------------------
ELECTRICAL EQUIPMENT - 3.7%
108 General Electric Co. 7,925
- -------------------------------------------------------
ENERGY - 10.6%
72 Atlantic Richfield Co. 5,769
84 Exxon Corp. 5,140
100 Royal Dutch Petroleum Co. ADR 5,419
120 Texaco, Inc. 6,525
- -------------------------------------------------------
22,853
- -------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 4.7%
75 Mack-Cali Realty Corp. 3,075
40 Developers Diversified Realty Corp. 1,530
130 National Health Properties, Inc. 3,315
66 Simon DeBartolo Group, Inc. 2,141
- -------------------------------------------------------
10,061
- -------------------------------------------------------
TECHNOLOGY - 3.1%
90 Xerox Corp. 6,643
- -------------------------------------------------------
</TABLE>
12
<PAGE>
------------------------------------
THE MONITOR INCOME EQUITY FUND (Continued)
- -------------------------------------------------------------------------------
MARKET
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - 7.4%
30 Bell Atlantic Corp. $2,730
100 GTE Corp. 5,225
60 Telecom of New Zealand Ltd. 2,325
125 US West Communications Group 5,641
- -------------------------------------------------------------------------------
15,921
- -------------------------------------------------------------------------------
UTILITIES - 8.7%
200 DPL, Inc. 5,750
120 Ipalco Enterprises, Inc. 5,033
90 Peoples Energy Corp 3,544
150 Wisconsin Energy Corp. 4,312
- -------------------------------------------------------------------------------
18,639
- -------------------------------------------------------------------------------
TOTAL COMMON STOCK (IDENTIFIED COST $85,758) 172,970
- -------------------------------------------------------------------------------
FINANCE - RETAIL - 0.7%
50 Security Capital Group, Inc. Industrial Pfd. B 1,593
- -------------------------------------------------------------------------------
INSURANCE - 1.1%
50 SunAmerica Inc. PERCS 2,328
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCK (IDENTIFIED COST $3,405) 3,921
- -------------------------------------------------------------------------------
PRINCIPAL/ MARKET
SHARE AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
PREFERRED STOCK - 1.8%
- -------------------------------------------------------------------------------
WARRANTS - 0.0%
3 Security Capital Group, Inc. Group B $16
- -------------------------------------------------------------------------------
CORPORATE BONDS - 16.8%
$2,000 General Motors, 8.80%, 03/01/21 2,443
5,000 BankAmerica Corp, 7.13%, 03/01/09 5,206
5,000 Ford Global Bond, 7.20%, 06/15/07 5,287
5,000 Hydro-Quebec, 7.50%, 04/01/16 5,375
5,000 J.C. Penney & Co., 7.60%, 04/01/07 5,394
2,000 KeyCorp Institutional Capital-A, 7.83%, 12/01/26(g) 2,088
5,000 Sears Global Bond, 7.00%, 06/15/07 5,206
5,000 Weyerhaeuser Co., 6.95%, 08/01/17 5,094
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $35,236) 36,093
- -------------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 0.5%
1,083 Prudential Funding Corp., 5.70%, 01/02/98
(at amortized cost) 1,082
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $125,482) $214,082
- -------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
------------------------------------
THE MONITOR OHIO TAX-FREE FUND December 31, 1997
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
OHIO LONG-TERM MUNICIPAL SECURITIES - 88.8%
- --------------------------------------------------------------------------------
$500 Akron, OH, GO, 5.30%, 12/01/11 $512
- --------------------------------------------------------------------------------
215 Alliance, OH, CSD, (AMBAC Insured), 6.20%, 12/01/01 232
- --------------------------------------------------------------------------------
300 Aurora, OH, CSD, (FGIC Insured), 5.50%, 12/01/07 326
- --------------------------------------------------------------------------------
290 Aurora, OH, GO, (Pre-Refunded), 12/1/99, (@102), 7.35% ( c ) 313
- --------------------------------------------------------------------------------
280 Avon Lake, OH, Water System, (AMBAC Insured), 5.10%,
10/01/05 293
- --------------------------------------------------------------------------------
250 Beachwood, OH, CSD, 6.60%, 12/01/04 274
- --------------------------------------------------------------------------------
200 Bedford, OH, CSD, (Energy Conservation Improvement), 5.40%,
06/15/03 208
- --------------------------------------------------------------------------------
215 Bedford, OH, CSD, (Energy Conservation Improvement), 5.35%,
06/15/02 223
- --------------------------------------------------------------------------------
250 Blue Ash, OH, GO, 6.50%, 11/01/99 261
- --------------------------------------------------------------------------------
500 Butler County, OH, 5.00%, 12/01/12 504
- --------------------------------------------------------------------------------
250 Butler County, OH, HRB, (Middletown Hospital)/(FGIC
Insured), 5.25%, 11/15/00 257
- --------------------------------------------------------------------------------
250 Centerville, OH, CSD, 6.63%, 12/01/99 262
- --------------------------------------------------------------------------------
500 Chagrin Falls, OH, Exempted School District,
5.10%, 12/01/10 510
- --------------------------------------------------------------------------------
250 Cincinnati, OH, 6.75%, 12/01/01 273
- --------------------------------------------------------------------------------
250 Cincinnati, OH, Street Improvement, 7.00%, 12/01/99 264
- --------------------------------------------------------------------------------
$500 Cleveland Heights, OH, (Series B), 5.60%, 12/01/02 $532
- --------------------------------------------------------------------------------
200 Cleveland, OH, GO, (Series B)/(AMBAC Insured), 6.40%,
10/01/02 219
- --------------------------------------------------------------------------------
500 Cleveland, OH, Public Power System, (Series B)/(MBIA
Insured), 5.90%, 11/15/01 532
- --------------------------------------------------------------------------------
250 Columbus, OH, (Pre-Refunded), 03/01/99 (@102), 7.00% (c) 263
- --------------------------------------------------------------------------------
270 Columbus, OH, (Series 2), 5.35%, 05/15/03 285
- --------------------------------------------------------------------------------
500 Columbus, OH, (Series B), 6.30%, 01/01/05 543
- --------------------------------------------------------------------------------
300 Columbus, OH, (Series D), 5.25%, 09/15/11 308
- --------------------------------------------------------------------------------
250 Columbus, OH, CSD, (FGIC Insured), 5.05%, 12/01/02 260
- --------------------------------------------------------------------------------
241 Columbus, OH, GO, 5.70%, 07/15/06 256
- --------------------------------------------------------------------------------
250 Columbus, OH, GO, 6.30%, 04/15/03 266
- --------------------------------------------------------------------------------
250 Copley/Fairlawn, OH, CSD, 5.15%, 12/01/01 261
- --------------------------------------------------------------------------------
500 Cuyahoga County, OH, (Pre-Refunded), 1/1/99 (@102),
6.90% (c) 533
- --------------------------------------------------------------------------------
500 Cuyahoga County, OH, (Series B), 4.50%, 10/01/00 506
- --------------------------------------------------------------------------------
500 Cuyahoga County, OH, GO, 5.20%, 11/15/09 523
- --------------------------------------------------------------------------------
200 Cuyahoga Falls, OH, GO, (MBIA Insured),
5.40%, 12/01/06 216
- --------------------------------------------------------------------------------
400 Delaware, OH, GO, 5.40%, 11/01/02 411
- --------------------------------------------------------------------------------
13
<PAGE>
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$250 Dover, OH, Electric System, (FGIC Insured),
5.50%, 12/01/07 $269
- -------------------------------------------------------------------------------
250 Dublin, OH, CSD, (FGIC Insured), 6.15%, 12/01/04 278
- -------------------------------------------------------------------------------
250 Dublin, OH, CSD, (FGIC Insured), 6.05%, 12/01/03 274
- -------------------------------------------------------------------------------
500 Dublin, OH, CSD, (MBIA Insured), 5.00%, 12/02/08 520
- -------------------------------------------------------------------------------
250 Eastlake, OH, GO, 5.00%, 12/01/04 259
- -------------------------------------------------------------------------------
440 Elyria, OH, GO, 5.10%, 12/01/11 449
- -------------------------------------------------------------------------------
500 Euclid, OH, GO, 5.45%, 12/01/08 537
- -------------------------------------------------------------------------------
250 Euclid, OH, GO, 6.40%, 12/01/04 273
- -------------------------------------------------------------------------------
500 Euclid, OH, GO, 5.30%, 12/01/07 534
- -------------------------------------------------------------------------------
420 Euclid, OH, GO, (Pre-Refunded), 12/1/99 (@102), 7.00% (c) 450
- -------------------------------------------------------------------------------
245 Fairfield, OH, CSD, (FGIC Insured), 5.65%, 12/01/06 268
- -------------------------------------------------------------------------------
500 Findlay, OH, GO, 5.50%, 07/01/08 536
- -------------------------------------------------------------------------------
250 Findlay, OH, SSRB, 5.20%, 07/01/06 261
- -------------------------------------------------------------------------------
250 Franklin County, OH, HRB, (Childrens Hospital)/(Series A),
6.50%, 05/01/07 276
- -------------------------------------------------------------------------------
500 Franklin County, OH, HRB, (Childrens Hospital)/(Series A),
5.80%, 11/01/10 535
- -------------------------------------------------------------------------------
285 Franklin County, OH, (Convention Authority)/(MBIA Insured),
5.50%, 12/01/03 304
- -------------------------------------------------------------------------------
500 Franklin County, OH, 5.05%, 12/01/05 527
- -------------------------------------------------------------------------------
500 Franklin County, OH, HRB (Childrens Hospital)/(Series
A)/(Pre-Refunded), 11/1/01 (@102), 6.40% (c) 548
- -------------------------------------------------------------------------------
305 Franklin County, OH, GO, (MBIA Insured),
6.00%, 09/01/06 340
- -------------------------------------------------------------------------------
550 Franklin County, OH, HRB, (Holy Cross Hospital)/(Series A),
7.20%, 06/01/00 588
- -------------------------------------------------------------------------------
500 Franklin County, OH, HRB, (Doctors Hospital),
5.05%, 12/01/99 508
- -------------------------------------------------------------------------------
515 Gahanna, OH, GO, 5.25%, 06/01/02 538
- -------------------------------------------------------------------------------
250 Gahanna, OH, (Series A)/(Pre-Refunded), 06/01/01 (@102),
6.40% (c) 272
- -------------------------------------------------------------------------------
580 Gahanna, OH, GO, 5.55%, 06/01/05 622
- -------------------------------------------------------------------------------
250 Grandview Heights, OH, 7.10%, 12/01/06 277
- -------------------------------------------------------------------------------
250 Grandview Heights, OH, CSD, 5.40%, 12/01/05 267
- -------------------------------------------------------------------------------
300 Greene County, OH, Water System, (Series A)/(FGIC Insured),
5.75%, 12/01/09 330
- -------------------------------------------------------------------------------
500 Hamilton County, OH, Sewer System Improvement Revenue,
4.70%, 12/01/09 503
- -------------------------------------------------------------------------------
300 Hamilton County, OH, (Museum Center),
5.95%, 12/01/02 324
- -------------------------------------------------------------------------------
155 Hamilton County, OH, HRB (Childrens Hospital)/(BIG
Insured), 6.75%, 05/15/02 159
- -------------------------------------------------------------------------------
500 Hamilton County, OH, HRB (Childrens Hospital)/
(Series D)/(FGIC Insured), 4.90%, 05/15/03 514
- -------------------------------------------------------------------------------
250 Hamilton County, OH, HRB (Childrens Hospital)/
(Series E)/(MBIA Insured), 4.60%, 05/15/00 253
- -------------------------------------------------------------------------------
500 Hamilton County, OH, HRB (Christ Hospital)/(Series A)/(FGIC
Insured), 6.50%, 01/01/02 534
- -------------------------------------------------------------------------------
500 Hamilton County, OH, GO, 5.10%, 12/01/11 509
- -------------------------------------------------------------------------------
500 Hamilton County, OH, HRB, (Episcopal Retirement)/(Fifth
Third Bank LOC),
5.90%, 01/01/99 510
- -------------------------------------------------------------------------------
95 Hamilton County, OH, SSRB, (Series A)/(Pre-Refunded),
6/1/01 (@102), 6.30% (c) 102
- -------------------------------------------------------------------------------
195 Hamilton County, OH, SSRB, (Series A)/(Pre-Refunded),
6/1/01 (@102), 6.40% (c) 213
- -------------------------------------------------------------------------------
155 Hamilton County, OH, SSRB, (Series A),
6.30%, 12/01/01 167
- -------------------------------------------------------------------------------
305 Hamilton County, OH, SSRB, (Series A),
6.40%, 12/01/03 332
- -------------------------------------------------------------------------------
390 Hamilton, OH, Electric System Revenue Bonds,
(Series A)/(FGIC Insured), 5.10%, 10/15/99 397
- -------------------------------------------------------------------------------
315 Hancock County, OH, GO, 5.20%, 12/01/08 331
- -------------------------------------------------------------------------------
500 Hilliard, OH, CSD, 4.80%, 12/01/08 505
- -------------------------------------------------------------------------------
250 Hilliard, OH, CSD, (AMBAC Insured), 5.00%, 12/01/03 261
- -------------------------------------------------------------------------------
500 Hilliard, OH, CSD, (Series A), 5.35%, 12/01/04 529
- -------------------------------------------------------------------------------
170 Hilliard, OH, GO, 5.35%, 12/01/06 179
- -------------------------------------------------------------------------------
180 Hilliard, OH, GO, 5.50%, 12/01/07 194
- -------------------------------------------------------------------------------
245 Indian Hill, OH, Water Works Revenue Bonds, 4.90%, 06/01/05 255
- -------------------------------------------------------------------------------
500 Kent State University, OH, (MBIA Insured), 5.30%, 05/01/10 524
- -------------------------------------------------------------------------------
585 Kettering, OH, GO, 5.05%, 12/01/04 606
- -------------------------------------------------------------------------------
255 Lakewood, OH, CSD, 5.05%, 12/01/05 266
- -------------------------------------------------------------------------------
535 Lakewood, OH, GO, 5.85%, 12/01/02 576
- -------------------------------------------------------------------------------
250 Lakota, OH, LSD, (AMBAC Insured), 6.40%, 12/01/00 267
- -------------------------------------------------------------------------------
500 Lorain County, OH, HRB, 6.00%, 09/01/08 559
- -------------------------------------------------------------------------------
500 Lorain County, OH, Water Authority, (AMBAC Insured), 4.95%,
10/01/04 519
- -------------------------------------------------------------------------------
200 Marysville, OH, Village School, (AMBAC Insured), 6.90%,
12/01/00 216
- -------------------------------------------------------------------------------
250 Mentor, OH, Street Improvement, (Series 1991-A), 6.70%,
12/01/03 271
- -------------------------------------------------------------------------------
250 Miami County, OH, GO, 4.88%, 12/01/10 250
- -------------------------------------------------------------------------------
500 Miami University, OH, 5.40%, 12/01/05 534
- -------------------------------------------------------------------------------
200 Miami Valley, OH, Regional Transit Authority, 5.10%,
12/01/01 206
- --------------------------------------------------------------------------------
14
<PAGE>
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500 Montgomery County, OH, (Series A)/(Pre-Refunded), 9/1/01,
(@100), 6.50%(c) 539
- -------------------------------------------------------------------------------
500 Montgomery County, OH, (Series A)/(Pre-Refunded), 9/1/01,
(@100), 6.45%(c) 539
- -------------------------------------------------------------------------------
285 Montgomery County, OH, GO, 5.75%, 12/01/06 301
- -------------------------------------------------------------------------------
500 Montgomery County, OH, GO, 5.40%, 12/01/11 528
- -------------------------------------------------------------------------------
500 Montgomery County, OH, Miami Valley Hospital, (Series
A)/(AMBAC Insured), 6.10%, 11/15/02 541
- -------------------------------------------------------------------------------
270 Montgomery, OH, GO, 5.60%, 12/01/05 285
- -------------------------------------------------------------------------------
250 Muskingum County, OH, Bethesda Hospital Facility, (Connie
Lee Insured), 5.35%, 12/01/07 267
- -------------------------------------------------------------------------------
500 Northeast, OH, Regional Sewer District, (AMBAC Insured),
6.40%, 11/15/03 546
- -------------------------------------------------------------------------------
250 Norwalk, OH, Water Work Systems, (Series 1996), 5.60%,
04/01/10 267
- -------------------------------------------------------------------------------
235 Norwalk, OH, Water Works Systems, (Series 1996), 5.55%,
04/01/09 252
- -------------------------------------------------------------------------------
500 Ohio Municipal Electric Generation Agency, (AMBAC Insured),
4.75%, 02/15/00 507
- -------------------------------------------------------------------------------
500 Ohio State Building Authority, (Correction
Facility)/(Series A), 6.50%, 10/01/04 546
- -------------------------------------------------------------------------------
500 Ohio State Building Authority, (James Rhodes
Center)/(Series A), 6.20%, 06/01/04 539
- -------------------------------------------------------------------------------
125 Ohio State Building Authority, (Series A)/(Pre-Refunded),
3/1/99 (@102), 7.25%(c) 132
- -------------------------------------------------------------------------------
125 Ohio State Building Authority, (Series H)/(Pre-Refunded),
8/1/99 (@102), 7.25%(c) 134
- -------------------------------------------------------------------------------
250 Ohio State Capital Facilities, (Series 1995-A)/(AMBAC
Insured), 5.80%, 06/01/03 270
- -------------------------------------------------------------------------------
300 Ohio State Economic Development, (Sysco Food Service),
6.60%, 12/01/03 338
- -------------------------------------------------------------------------------
445 Ohio State Higher Education Facility, (Denison University),
5.40%, 11/01/11 461
- -------------------------------------------------------------------------------
250 Ohio State Higher Education Facility, (John Carroll
University), 5.35%, 10/01/05 265
- -------------------------------------------------------------------------------
250 Ohio State Higher Education Facility, (Oberlin College),
5.00%, 10/01/02 261
- -------------------------------------------------------------------------------
250 Ohio State Higher Education Facility, (Oberlin College),
4.50%, 10/01/99 253
- -------------------------------------------------------------------------------
555 Ohio State Higher Education Facility, (Ohio Northern
University)/(Connie Lee Insured), 4.90%, 05/01/03 572
- -------------------------------------------------------------------------------
250 Ohio State Higher Education Facility, (University of
Dayton)/(FGIC Insured), 6.10%, 12/01/01 268
- -------------------------------------------------------------------------------
500 Ohio State Public Facilities, (Mental Health)/(Series
A)/(MBIA Insured), 6.75%, 12/01/01 534
- -------------------------------------------------------------------------------
250 Ohio State Public Facilities, (Series A)/(MBIA Insured),
6.50%, 06/01/00 263
- -------------------------------------------------------------------------------
250 Ohio State Public Facilities, (Series IIB)/(AMBAC Insured),
5.70%, 11/01/99 258
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
- ----------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- ----------------------------------------------------------------------------
<C> <S> <C>
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- ----------------------------------------------------------------------------
$750 Ohio State Turnpike Revenue Bonds, (Series A), 5.35%,
02/15/09 776
- ----------------------------------------------------------------------------
500 The Ohio State University, (Series A2), 5.30%, 12/01/01 525
- ----------------------------------------------------------------------------
500 The Ohio State University, (Series A2), 5.75%, 12/01/09 534
- ----------------------------------------------------------------------------
500 Ohio Water Development Authority, (Clean Water
Project)/(MBIA Insured), 5.65%, 06/01/05 537
- ----------------------------------------------------------------------------
250 Olmstead Falls, OH, LSD, (FGIC Insured), 6.30%, 12/15/01 270
- ----------------------------------------------------------------------------
250 Pickerington, OH, LSD, (AMBAC Insured), 5.55%, 12/01/07 269
- ----------------------------------------------------------------------------
200 Portage County, OH, (AMBAC Insured),
5.20%, 12/01/01 209
- ----------------------------------------------------------------------------
500 Rocky River, OH, CSD, GO, 5.15%, 12/01/08 536
- ----------------------------------------------------------------------------
200 Salem, OH, SSRB, (AMBAC Insured), 6.00%, 02/01/01 200
- ----------------------------------------------------------------------------
150 Solon, OH, GO, 5.65%, 12/01/05 159
- ----------------------------------------------------------------------------
500 Solon, OH, GO, 5.25%, 12/01/07 529
- ----------------------------------------------------------------------------
250 Solon, OH, GO, 6.65%, 12/01/01 267
- ----------------------------------------------------------------------------
250 Solon, OH, GO, 6.55%, 12/01/00 266
- ----------------------------------------------------------------------------
250 Solon, OH, LSD, (ETM), 6.85%, 12/01/00 269
- ----------------------------------------------------------------------------
245 South Euclid, OH, Recreational Facilities,
6.15%, 12/01/00 259
- ----------------------------------------------------------------------------
250 South Western CSD,OH, (Series A)/(AMBAC Insured), 6.00%,
12/01/04 275
- ----------------------------------------------------------------------------
250 South Western CSD, OH, (ETM), 6.10%, 12/01/99 259
- ----------------------------------------------------------------------------
250 Springfield, OH, LSD, 6.00%, 12/01/02 270
- ----------------------------------------------------------------------------
250 State of Ohio, Highway Revenue Bonds, (Series S), 4.50%,
05/15/00 253
- ----------------------------------------------------------------------------
500 State of Ohio, Highway Revenue Bonds, (Series T), 4.80%,
05/15/01 514
- ----------------------------------------------------------------------------
500 Strongsville, OH, GO, 6.70%, 12/01/11 576
- ----------------------------------------------------------------------------
250 Summit County, OH, GO, (MBIA Insured),
5.65%, 12/01/07 270
- ----------------------------------------------------------------------------
500 Toledo, OH, SSRB, (Series A)/(MBIA Insured),
7.25%, 11/15/00 524
- ----------------------------------------------------------------------------
500 Troy, OH, GO, 6.25%, 12/01/11 576
- ----------------------------------------------------------------------------
550 Twinsburg, OH, LSD, 5.40%, 12/01/09 588
- ----------------------------------------------------------------------------
250 University of Cincinnati, OH, (MBIA Insured),
6.40%, 12/01/03 273
- ----------------------------------------------------------------------------
500 University of Cincinnati, OH, (MBIA Insured),
5.10%, 06/01/11 516
- ----------------------------------------------------------------------------
250 University of Cincinnati, OH, (Series R5),
5.15%, 06/01/05 261
- ----------------------------------------------------------------------------
250 University of Cincinnati, OH, (Series R9),
5.60%, 06/01/09 259
</TABLE>
- --------------------------------------------------------------------------------
15
<PAGE>
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$265 University of Cincinnati, OH, (Series V),
5.35%, 06/01/09 $276
- -------------------------------------------------------------------------------
250 University of Cincinnati, OH, (Series V),
5.25%, 06/01/08 261
- -------------------------------------------------------------------------------
500 Vandalia, OH, GO, 5.45%, 12/01/10 526
- -------------------------------------------------------------------------------
175 Warren County, OH, Sewer Improvement, (Lower Miami Valley),
5.25%, 12/01/08 184
- -------------------------------------------------------------------------------
185 Warren County, OH, Sewer Improvement, (Lower Miami Valley),
5.35%, 12/01/09 194
- -------------------------------------------------------------------------------
170 Warren County, OH, SSRB, (Series A)/(Pre-Refunded),
12/01/00 (@102), 6.95%(c) 186
- -------------------------------------------------------------------------------
400 Warren County, OH, Water System Improvement, (P&G Project),
5.25%, 12/01/07 425
- -------------------------------------------------------------------------------
235 Warren County, OH, Water Works, (FGIC Insured), 6.10%,
12/01/02 255
- -------------------------------------------------------------------------------
470 Westerville, OH, Water System, 5.90%, 12/01/04 510
- -------------------------------------------------------------------------------
500 Westlake, OH, CSD, (Series A), 5.50%, 12/01/10 531
- -------------------------------------------------------------------------------
500 Westlake, OH, GO, 5.35%, 12/01/10 526
- -------------------------------------------------------------------------------
250 Worthington, OH, CSD, (FGIC Insured),
5.85%, 06/01/02 267
- -------------------------------------------------------------------------------
250 Worthington, OH, CSD, (MBIA Insured),
7.15%, 12/01/00 269
- -------------------------------------------------------------------------------
250 Wright State University, (AMBAC Insured),
5.00%, 05/01/06 260
- -------------------------------------------------------------------------------
TOTAL OHIO LONG-TERM MUNICIPAL SECURITIES (IDENTIFIED COST $55,113) 58,386
- -------------------------------------------------------------------------------
OTHER LONG-TERM MUNICIPAL SECURITIES - 0.9%
- -------------------------------------------------------------------------------
500 Puerto Rico Commonwealth, 6.50%, 07/01/11 (identified cost
$563) 589
- -------------------------------------------------------------------------------
TOTAL LONG-TERM MUNICIPAL SECURITIES (IDENTIFIED COST $55,676) 58,975
- -------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES - 9.5%
- -------------------------------------------------------------------------------
250 Archibold, OH, LSD, (Pre-Refunded),
12/1/98 (@102), 6.80%(c) 262
- -------------------------------------------------------------------------------
205 Berea, OH, GO, 6.95%, 12/01/98 211
- -------------------------------------------------------------------------------
230 Bowling Green, OH, CSD, (ETM), 6.90%, 12/01/98 236
- -------------------------------------------------------------------------------
500 Butler County, OH, SSRB, (AMBAC Insured),
4.80%, 12/01/98 505
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
- ------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM MUNICIPAL SECURITIES - (CONTINUED)
- ------------------------------------------------------------------------------
$1,700 Cincinnati & Hamilton County, OH, Daily VRDNs, (Kenwood
Office Associates)/(Fuji Bank Ltd. LOC), 4.95%, 09/01/25 $1,700
- ------------------------------------------------------------------------------
300 Columbus, OH, GO, 4.05%, 12/01/17 300
- ------------------------------------------------------------------------------
250 Cuyahoga County, OH, (Pre-Refunded), 10/1/98
(@102), 7.00%(c) 261
- ------------------------------------------------------------------------------
100 Franklin County, OH, HRB, Daily VRDNs, (Franciscan
Sister)/(Chase Manhattan LOC), 5.00%, 07/01/15 100
- ------------------------------------------------------------------------------
200 Hamilton County, OH, Health System, Daily VRDNs,
(Franciscan Health)/(Sumitomo Bank LOC),
5.20%, 03/01/17 200
- ------------------------------------------------------------------------------
230 Hilliard, OH, GO, 6.75%, 12/01/98 236
- ------------------------------------------------------------------------------
265 Mentor, OH, (Series A1), 6.80%, 12/01/98 272
- ------------------------------------------------------------------------------
100 Ohio State Air Quality Authority, Daily VRDNs, (Mead
Corp.)/(Deutsche Bank LOC), 5.00%, 10/01/01 100
- ------------------------------------------------------------------------------
200 Ohio State Higher Education Facility, (Pooled
Borrowing)/(Banc One LOC), 6.05%, 12/01/98 204
- ------------------------------------------------------------------------------
250 Ohio State Public Facilities, (Mental Health), (Series
A)/(Pre-Refunded), 06/01/98 (@102), 7.30%(c) 259
- ------------------------------------------------------------------------------
250 Ohio State Public Facilities, (Series B), (ETM),
6.90%, 06/01/98 253
- ------------------------------------------------------------------------------
100 The Ohio State University, Weekly VRDNs, (Series 1986
B)/(National Westminster Bank LOC),
3.80%, 12/01/06 100
- ------------------------------------------------------------------------------
100 The Ohio State University, Weekly VRDNs, (Series 1985
B)/(National Westminster Bank LOC),
3.80%, 12/01/01 100
- ------------------------------------------------------------------------------
250 Ohio State Higher Education Facility, (Xavier
University)/(ETM), 7.10%, 11/01/98 257
- ------------------------------------------------------------------------------
250 Ohio Water Development Authority, (Series I)/(Pre-
Refunded), 6/1/98 (@102), 7.10%(c) 258
- ------------------------------------------------------------------------------
250 Sandusky County, OH, (AMBAC Insured),
6.65%, 12/01/98 256
- ------------------------------------------------------------------------------
200 Upper Arlington, OH, CSD, (Pre-Refunded),
12/1/98 (@102), 6.80%(c) 209
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES (IDENTIFIED COST $6,182) 6,279
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $61,858) $65,254
</TABLE>
- --------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
16
<PAGE>
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND December 31, 1997
<TABLE>
- -----------------------------------------------------------------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS - 58.5%
- -----------------------------------------------------------------------
BANKS & SAVINGS AND LOANS - 5.5%
$1,000 ABN Amro, 7.25%, 05/31/05 $1,045
1,000 Banc One, 7.00%, 07/15/05 1,031
250 BankAmerica Corp., 7.75%, 07/15/02 264
1,000 Citicorp, 7.25%, 09/01/08 1,048
250 Citicorp, 9.75%, 08/01/99 263
500 Comerica, 9.75%, 05/01/99 523
1,000 Key Corp, 6.75%, 03/15/06 1,016
1,000 Mellon Bank N.A., 6.50%, 08/01/05 1,005
1,000 NBD Bancorp, 7.13%, 05/15/07 1,040
250 Security Pacific Corp., 9.75%, 05/15/99 262
1,000 Swiss Bank Corp.--New York, 7.25%, 09/01/06 1,056
- -----------------------------------------------------------------------
8,553
- -----------------------------------------------------------------------
BASIC INDUSTRY - 1.4%
500 Air Products & Chemicals, 8.88%, 08/01/01 543
250 Arco Chemical Co., 9.90%, 11/01/00 273
250 Weyerhaeuser Co., 9.05%, 02/01/03 279
1,000 Worthington Industries, 7.13%, 05/15/06 1,050
- -----------------------------------------------------------------------
2,145
- -----------------------------------------------------------------------
CAPITAL GOODS - 0.2%
250 Caterpillar, Inc., 9.38%, 07/15/00 269
- -----------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 10.6%
1,500 American Home Products, Corp. 6.50%, 10/15/02 1,508
1,000 Bergen Brunswig Corp., 7.25%, 06/01/05 1,046
1,000 Cardinal Health, 6.00%, 01/15/06 979
1,000 Carnival Corp., 6.15%, 10/01/03 992
1,000 Darden Restaurants Inc., 6.38%, 02/01/06 975
250 Dayton Hudson Corp., 10.00%, 12/01/00 274
750 Grand Met Investment Corp., 7.13%, 09/15/04 780
250 Great Atlantic & Pacific Tea, Inc., 9.13%, 01/15/98 250
1,000 Harvard University, 8.13%, 04/15/07 1,129
1,000 Hertz Corp., 7.00%, 07/15/03 1,021
1,000 J.C. Penney & Co., 6.88%, 10/15/15 994
250 Limited, Inc., 9.13%, 02/01/01 267
1,000 Limited, Inc., 7.80%, 05/15/02 1,037
750 May Dept. Stores Co., 9.88%, 06/15/00 814
250 Nordstrom, Inc., 8.88%, 02/15/98 251
500 Philip Morris Co. Inc., 7.63%, 05/15/02 521
1,000 Ralston Purina, 9.25%, 10/15/09 1,204
500 Scripps Howard, Inc., 7.38%, 12/15/98 505
250 Universal Corp., 9.25%, 02/15/01 270
1,500 V.F. Corp., 7.60%, 04/01/04 1,564
- -----------------------------------------------------------------------
16,381
- -----------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 0.9%
500 Joseph E. Seagram & Sons Inc., 7.00%, 04/15/08 521
500 Watts Industries, 8.38%, 12/01/03 548
250 Whirlpool Corp., 9.50%, 06/15/00 269
- -----------------------------------------------------------------------
1,338
- -----------------------------------------------------------------------
ENERGY-OIL & GAS - 1.0%
1,000 Ashland Oil Inc., 7.71%, 05/11/07 1,075
500 Consolidated Natural Gas Co., 5.88%, 10/01/98 499
- -----------------------------------------------------------------------
1,574
- -----------------------------------------------------------------------
FINANCE COMPANIES - 7.7%
1,000 Abbey National PLC, 6.69%, 10/17/05 1,021
1,000 Bear Stearns, 6.63%, 01/15/06 1,007
1,000 CSW Investments, 7.45%, 08/01/01 1,051
1,000 Countrywide Funding Corp., 8.25%, 07/15/02 1,069
1,000 Crown Cork & Seal Finance PLC, 7.00%, 12/15/06 1,034
500 Eaton Off Shore Ltd., 9.00%, 02/15/01 541
1,000 Ford Motor Credit Corp., 7.75%, 03/15/05 1,073
500 Kimco Realty, 6.50%, 10/01/03 500
1,000 MBNA Corp., 6.88%, 06/01/05 1,011
</TABLE>
<TABLE>
- -----------------------------------------------------------------------
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- -----------------------------------------------------------------------
FINANCE COMPANIES (CONTINUED)
$1,000 Salomon Brothers, 6.75%, 01/15/06 $1,015
1,300 Smurfit Capital, 6.75%, 11/20/05 1,315
1,300 SunAmerica Inc., 7.34%, 08/30/05 1,365
- -----------------------------------------------------------------------
12,002
- -----------------------------------------------------------------------
(D) FOREIGN INDUSTRIAL - 4.0%
1,000 Canadian National Railroad, 7.00%, 03/15/04 1,025
1,000 English China Clay, 7.38%, 10/01/02 1,036
750 Hydro-Quebec, Canada, 7.38%, 02/01/03 783
1,000 Hydro-Quebec, Canada, 9.75%, 01/15/18 1,136
500 Northern Telecom, Ltd., 8.75%, 06/12/01 538
1,000 Philips Electronics, 8.38%, 09/15/06 1,111
615 Rhone-Poulnec, 7.75%, 01/15/02 643
- -----------------------------------------------------------------------
6,272
- -----------------------------------------------------------------------
(D) FOREIGN SOVEREIGN - 4.9%
1,000 Barcelona City, Spain, 8.13%, 02/15/05 1,095
1,000 Gen De Catalunya, 6.38%, 12/15/07 993
1,000 Province of Ontario, Canada, 6.00%, 02/21/06 988
500 Province of Ontario, Canada, 6.13%, 06/28/00 501
1,000 Province of Quebec, Canada, 8.63%, 01/19/05 1,125
250 Province of Quebec, Canada, 8.80%, 04/15/03 277
1,000 Republic of Finland, 7.88%, 07/28/04 1,097
1,550 Republic of Iceland, 6.13%, 02/01/04 1,540
- -----------------------------------------------------------------------
7,616
- -----------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 7.5%
500 Baltimore Gas & Electric Co., 6.63%, 03/15/08 508
1,000 Big Rivers Electric, 9.50%, 02/15/17 1,050
1,000 Cajun Electric Power, 9.52%, 03/15/19 1,053
1,100 Duke Energy Corporation, 6.38%, 03/01/08 1,097
815 Iowa Electric Power & Light, 8.63%, 05/15/01 875
1,300 Jersey Central Power & Light, 7.13%, 10/01/04 1,336
1,000 Minnesota Power & Light, 7.75%, 06/01/07 1,050
1,000 Northwestern Public Services, 7.10%, 08/01/05 1,045
1,000 Otter Tail Power Co., 6.38%, 12/01/07 995
1,000 Pennsylvania Power & Light, 6.88%, 02/01/03 1,030
1,000 Public Service Electric & Gas, 6.25%, 01/01/07 995
500 Western Resources Inc., 7.25%, 07/01/99 507
- -----------------------------------------------------------------------
11,541
- -----------------------------------------------------------------------
INDUSTRIAL - 3.4%
1,500 Dow Chemical, 8.55%, 10/15/09 1,774
1,000 Olsten Corp., 7.00%, 03/15/06 1,029
400 Polaroid Corporation, 7.25%, 01/15/07 417
1,000 Reynolds & Reynolds, 7.00%, 12/15/06 1,034
1,000 Toro Company, 7.13%, 06/15/07 1,033
- -----------------------------------------------------------------------
5,287
- -----------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 5.5%
1,000 Black & Decker Co., 7.50%, 04/01/03 1,045
1,000 Carlisle Companies Inc., 7.25%, 01/15/07 1,045
1,000 E.W. Scripps Co., 6.63%, 10/15/07 1,021
1,000 FBG (Fosters Brewing) Finance Ltd., 6.75%, 11/15/05 1,004
1,200 Georgia Pacific Corp, 9.95%, 06/15/02 1,355
1,000 Millennium America Inc., 7.00%, 11/15/06 1,025
1,000 Noranda, Inc., 7.00%, 07/15/05 1,019
1,000 Tosco Corp., 7.25%, 01/01/07 1,051
- -----------------------------------------------------------------------
8,565
- -----------------------------------------------------------------------
INSURANCE - 2.4%
1,000 Lincoln National Corp., 7.25%, 05/15/05 1,048
1,500 MBIA, Inc., 9.00%, 02/15/01 1,616
1,000 U.S. Life, 6.38%, 06/15/00 996
- -----------------------------------------------------------------------
3,660
- -----------------------------------------------------------------------
</TABLE>
17
<PAGE>
------------------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- -------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- -------------------------------------------------------------------------------
TECHNOLOGY - 0.3%
$500 International Business Machines, 6.38%, 06/15/00 $504
- -------------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION CO. - 2.3%
1,000 Comsat Corp., 8.95%, 05/15/01 1,081
1,000 General Telephone of the Southeast, 7.63%, 07/01/02 1,011
900 GTE Corp., 9.10%, 06/01/03 1,006
500 Southwestern Bell Telephone Co., 6.63%, 04/01/05 508
- -------------------------------------------------------------------------------
3,606
- -------------------------------------------------------------------------------
TRANSPORTATION - 0.9%
250 Union Pacific Co., 9.63%, 12/15/02 282
1,000 Union Pacific Co., 8.50%, 01/15/17 1,043
- -------------------------------------------------------------------------------
1,325
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $87,098) 90,638
- -------------------------------------------------------------------------------
GOVERNMENT AGENCIES - 6.8%
4,000 Federal National Mortgage Association Note,
7.93%, 09/20/06 4,121
1,625 GNMA Pool # 345128, 6.50%, 01/15/24 1,608
866 GNMA Pool # 352982, 7.50%, 05/15/24 887
1,711 GNMA Pool # 372962, 7.00%, 03/15/24 1,726
863 GNMA Pool # 373015, 8.00%, 06/15/24 894
1,225 GNMA Pool # 391615, 8.50%, 09/15/24 1,287
- -------------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES (IDENDIFIED COST $10,258) 10,523
- -------------------------------------------------------------------------------
U.S. TREASURIES - 30.5%
1,000 United States Treasury Notes, 8.75%, 08/15/20 1,334
4,000 United States Treasury Notes, 7.00%, 07/15/06 4,233
30,000 United States Treasury Notes, 6.63%, 03/31/02 30,966
10,000 United States Treasury Notes, 6.63%, 05/15/07 10,792
- -------------------------------------------------------------------------------
TOTAL U.S. TREASURIES (IDENTIFIED COST $45,096) 47,325
- -------------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 2.5%
3,872 Prudential Funding Corp., 5.70%, 01/02/98
(at amortized cost) 3,872
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $146,324) $152,358
- -------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
------------------------
THE MONITOR MORTGAGE SECURITIES FUND December 31, 1997
- -------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. - 32.5%
(e)$2,000 Gold 30 Yr, (Dollar Roll), 7.00%, 12/01/26 $2,019
1,255 Gold 30 Yr, 6.50%, 12/01/25 1,246
2,434 Gold 30 Yr, 7.00%, 04/01/27 2,460
115 Pool # 220007, 8.75%, 08/01/01 118
115 Pool # 380059, 9.50%, 10/01/04 120
2,296 Pool # C80391, 7.00%, 03/01/26 2,324
2,198 Pool # D69575, 7.50%, 03/01/26 2,254
1,793 Pool # E65142, 6.50%, 07/01/11 1,798
63 Pool # N90034, 9.00%, 11/01/98 63
- -------------------------------------------------------------------------------
12,402
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 43.4%
196 Pool # 050279, 8.50%, 02/01/05 203
331 Pool # 250128, 7.50%, 09/01/09 340
2,351 Pool # 250551, 7.00%, 05/01/26 2,371
1,312 Pool # 250554, 6.50%, 05/01/11 1,314
268 Pool # 303459, 8.00%, 07/01/02 275
1,314 Pool # 303653, 7.00%, 12/01/25 1,328
1,848 Pool # 303753, 9.00%, 12/01/20 1,973
1,271 Pool # 338449, 6.00%, 05/01/11 1,254
1,652 Pool # 335836, 7.00%, 03/01/26 1,667
1,274 Pool # 343212, 7.50%, 05/01/26 1,305
2,465 Pool # 397835, 6.50%, 09/01/12 2,469
1,024 Pool # 377753, 6.50%, 04/01/12 1,025
1,000 REMIC 1996-53, 6.50%, 12/18/11 1,014
- -------------------------------------------------------------------------------
16,538
- -------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 15.5%
1,569 Pool # 200023, 9.50%, 05/15/18 $1,713
49 Pool # 305936, 8.50%, 04/15/06 51
298 Pool # 306058, 8.50%, 06/15/06 310
69 Pool # 328651, 8.50%, 05/15/07 71
621 Pool # 344961, 7.00%, 06/15/08 634
555 Pool # 348112, 7.00%, 06/15/08 566
488 Pool # 349379, 7.00%, 05/15/08 498
1,148 Pool # 780398, 9.00%, 04/15/21 1,251
765 Pool # 780408, 9.00%, 10/15/22 827
- -------------------------------------------------------------------------------
5,921
- -------------------------------------------------------------------------------
U.S. TREASURY NOTES - 8.0%
3,000 U.S. Treasury Notes, 6.875%, 07/31/99 3,054
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 5.3%
2,025 Goldman Sachs Co., Inc., dated 12/31/97, 6.78%, due
01/02/98 repurchase price $2,025,763 (collateralized by
FNMA obligations, total par value $1,978,849, 6.92%
10/01/24; total market value $1,994,045) 2,025
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $39,088) $39,940
- -------------------------------------------------------------------------------
See Notes to Portfolios of Investments.
18
<PAGE>
--------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME December 31, 1997
SECURITIES FUND
<TABLE>
- ----------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- ----------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS - 59.3%
- ----------------------------------------------------------------------
BANK & SAVINGS AND LOANS - 10.8%
$1,000 Bankers Trust, 9.20%, 07/15/99 $1,043
1,000 Barnett Banks, 8.50%, 03/01/99 1,026
1,100 Chase Manhattan Corp., 10.00%, 06/15/99 1,158
1,000 Chemical New York Corp., 9.75%, 06/15/99 1,049
1,000 Citicorp, 9.00%, 04/15/99 1,035
500 Comerica, 9.75%, 05/01/99 522
1,000 Dominion Bankshares, 9.63%, 06/15/99 1,047
1,000 First Chicago, 9.88%, 07/01/99 1,051
500 First Fidelity Bancorp, 9.63%, 08/15/99 526
1,000 First Security Bank Utah, 7.88%, 10/15/99 1,029
1,000 Golden West Financial, 9.15%, 05/23/98 1,012
1,000 Harris Bancorp, 9.38%, 06/01/01 1,094
500 KeyCorp., 8.40%, 04/01/99 513
1,000 Mellon Corp., 6.30%, 06/01/00 1,004
500 Sovran Financial, 9.75%, 06/15/99 525
- ----------------------------------------------------------------------
13,634
- ----------------------------------------------------------------------
BASIC INDUSTRY - 3.4%
1,000 LaFarge Corp., 9.32%, 04/24/01 1,085
1,000 Reynolds Metals, 9.31%, 01/03/02 1,101
1,000 Tech Corp, 8.70%, 05/01/02 1,068
1,000 WMX Technologies, Inc., 8.25%, 11/15/99 1,037
- ----------------------------------------------------------------------
4,291
- ----------------------------------------------------------------------
CAPITAL GOODS - 0.4%
500 Baker Hughes, Inc., 7.63%, 02/15/99 509
- ----------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 10.1%
1,000 American Home Products, 7.70%, 02/15/00 1,029
1,000 American Stores, 9.13%, 04/01/02 1,098
1,400 Columbia Pictures Entertainment, 9.88%, 02/01/98 1,403
1,000 Cox Communications Inc., 6.38%, 06/15/00 1,004
1,000 Dayton Hudson, 7.50%, 03/01/99 1,016
1,120 Dillard Dept. Stores Inc., 8.75%, 06/15/98 1,133
1,000 Fortune Brands Inc, 9.00%, 06/15/99 1,041
1,000 PepsiCo Inc., 6.80%, 05/15/00 1,017
500 Philip Morris Inc., 6.38%, 01/15/98 500
1,000 Philip Morris Inc., 7.38%, 02/15/99 1,012
500 Scripps Howard Inc., 7.38%, 12/15/98 505
1,000 Sears Roebuck Co., 8.47%, 03/11/02 1,070
1,000 Super Valu Stores Inc., 8.88%, 06/15/99 1,039
- ----------------------------------------------------------------------
12,867
- ----------------------------------------------------------------------
ENERGY-OIL & GAS - 1.6%
1,000 Burlington Resources, 7.15%, 05/01/99 1,014
1,000 Elf Aquitaine, 7.75%, 05/01/99 1,021
- ----------------------------------------------------------------------
2,035
- ----------------------------------------------------------------------
FINANCE COMPANIES - 12.9%
812 AFG Receivables Trust 97-A, 6.65%, 10/15/02 817
1,000 American Express Credit, 7.38%, 02/01/99 1,015
1,000 American General Finance, 6.88%, 07/01/99 1,013
1,050 Aristar Inc., 7.88%, 02/15/99 1,070
1,000 AT&T Capital Corp, 6.90%, 01/30/02 1,018
1,200 Bear Stearns Co., 7.63%, 09/15/99 1,230
1,000 Chrysler Financial Corp., 13.25%, 10/15/99 1,119
500 CSW Investments, 6.95%, 08/01/01 508
1,000 Ford Motor Credit Co., 7.75%, 10/01/99 1,028
1,000 General Motors Acceptance Corp, 6.75%, 02/07/02 1,018
1,000 Goldman Sachs, 6.88%, 09/15/99 1,013
1,000 Household International, 6.00%, 03/15/99 1,000
1,000 International Lease Finance Corp., 5.75%, 07/01/98 1,000
1,000 Lehman Brothers Inc., 7.63%, 08/01/98 1,009
500 Morgan Stanley Group, 7.88%, 12/15/98 509
1,000 Salomon Inc., 9.38%, 04/15/98 1,009
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
(000) (000)
- ----------------------------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
- ----------------------------------------------------------------------------
FINANCE COMPANIES (CONTINUED)
$1,000 Spieker Properties, 6.80%, 12/15/01 $1,013
- ----------------------------------------------------------------------------
16,389
- ----------------------------------------------------------------------------
(D) FOREIGN INDUSTRIAL - 2.2%
1,600 Pacific Dunlap, 9.75%, 12/15/00 1,754
1,000 Rhone-Poulenc, 6.75%, 10/15/99 1,008
- ----------------------------------------------------------------------------
2,762
- ----------------------------------------------------------------------------
(D) FOREIGN SOVEREIGN - 2.1%
1,000 Montreal Urban Commission, 9.13%, 03/15/01 1,081
1,500 Province of Quebec, 9.38%, 04/01/99 1,558
- ----------------------------------------------------------------------------
2,639
- ----------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 4.4%
1,000 Commonwealth Edison, 7.50%, 01/01/01 1,006
1,000 Detroit Edison, 6.56%, 05/01/01 1,010
500 Empire District Electric Co., 5.70%, 05/01/98 499
1,000 Iowa Electric Light & Power, 7.60%, 03/01/99 1,018
1,000 Rochester Gas & Electric, 8.25%, 03/15/02 1,070
1,000 Southern California Edison, 7.50%, 04/15/99 1,018
- ----------------------------------------------------------------------------
5,621
- ----------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 2.3%
1,000 AAR Corp, 9.50%, 11/01/01 1,105
1,000 Polaroid Corporation, 6.75%, 01/15/02 1,005
750 Ultramar Corp, 8.25%, 07/01/99 769
- ----------------------------------------------------------------------------
2,879
- ----------------------------------------------------------------------------
INSURANCE - 4.0%
1,000 Allstate Corp., 5.88%, 06/15/98 1,000
1,000 Continental Corp., 8.25%, 04/15/99 1,025
1,000 Torchmark Corp., 9.63%, 05/01/98 1,011
1,000 Travelers Inc., 7.75%, 06/15/99 1,024
1,000 U.S. Life, 6.38%, 06/15/00 996
- ----------------------------------------------------------------------------
5,056
- ----------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION CO. - 2.4%
1,000 Airtouch Communications, 7.13%, 07/15/01 1,025
1,000 MCI Communications Corp., 6.25%, 03/23/99 1,002
1,000 U.S. West Capital Funding, 6.85%, 01/15/02 1,016
- ----------------------------------------------------------------------------
3,043
- ----------------------------------------------------------------------------
TRANSPORTATION - 2.7%
765 Conrail Inc., 9.75%, 06/01/00 824
1,500 CSX Corp., 9.50%, 08/01/00 1,615
1,000 Union Pacific Corp., 6.25%, 03/15/99 1,001
- ----------------------------------------------------------------------------
3,440
- ----------------------------------------------------------------------------
TOTAL CORPORATE BONDS (COST $74,072) 75,165
- ----------------------------------------------------------------------------
GOVERNMENT BONDS - 36.4%
- ----------------------------------------------------------------------------
GOVERNMENT AGENCIES - 2.4%
3,000 Federal National Mortgage Association, 6.70%, 08/10/01 3,031
- ----------------------------------------------------------------------------
U.S. TREASURIES - 34.0%
7,000 U.S. Treasury Notes, 6.25%, 06/30/02 7,138
3,000 U.S. Treasury Notes, 5.88%, 09/30/02 3,016
32,000 U.S. Treasury Notes, 6.63%, 03/31/02 33,030
- ----------------------------------------------------------------------------
43,184
- ----------------------------------------------------------------------------
TOTAL GOVERNMENT BONDS (COST $44,898) 46,215
- ----------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 2.9%
3,741 Prudential Funding Corp., 5.70%, 01/02/98
(at amortized cost) 3,741
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $122,711) $125,121
- ----------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments.
19
<PAGE>
- --------------------------------------------------------------------------------
Notes to Portfolios of Investments
- --------------------------------------------------------------------------------
* Non-income producing securities.
(a) Discount Security. Disclosed rate is the effective rate of the security at
the time of purchase.
(b) Non-Discount security. Disclosed rate is the coupon rate.
(c) Pre-Refunded Security--The maturity date shown represents the pre-refunded
date.
(d) U.S. Dollar denominated.
(e) On December 31, 1997 the total cost of investments purchased on a when-
issued basis was $1,980,000.
(f) Putable Security--the maturity date shown represents the put date.
(g) Section 4(2) Commercial Paper/Rule 144A Security--Security is subject to
contractual or legal restriction on its resale and is deemed liquid
pursuant to guidelines established by the Board of Trustees.
The following abbreviations are used in these Portfolios of Investments:
<TABLE>
<S> <C>
ADR--American Depository Receipt IDA--Industrial Development Authority
AMBAC--American Municipal Bond Assurance Corporation IDR--Industrial Development Revenue
BANs--Bond Anticipation Notes LOC--Letter of Credit
BIG--Bond Investors Guaranty LSD--Local School District
CSD--City School District MBIA--Municipal Bond Investors Assurance
EDR--Educational Development Revenue PERCS--Preferred Equity Redemption Cumulative Stock
ETM--Escrowed to Maturity PLC--Public Limited Company
FGIC--Financial Guaranty Insurance Company REMIC--Real Estate Mortgage Investment Conduit
FNMA--Federal National Mortgage Association SPA--Standby Purchase Agreement
GNMA--Government National Mortgage Association SSRB--Sewer System Revenue Bonds
GO--General Obligation TANs--Tax Anticipation Notes
HRB--Hospital Revenue Bonds VRDNs--Variable Rate Demand Notes-rates disclosed are in effect
December 31, 1997
</TABLE>
The categories of investments are shown as a percentage of net assets.
The following is a summary of investment information as of December 31, 1997.
(000)
<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......... $ 566,743** -- -- -- 564,435
Ohio Municipal Money
Market Fund.............. 155,004** -- -- -- 155,564
U.S. Treasury Money
Market Fund.............. 543,639** -- -- -- 541,306
Growth Fund............... 132,042 101,434 102,789 (1,355) 233,623
Income Equity Fund........ 125,482 88,600 88,600 -- 214,904
Ohio Tax-Free Fund........ 61,858 3,396 3,396 -- 65,793
Fixed Income Securities
Fund..................... 146,324 6,034 6,153 (119) 154,989
Mortgage Securities
Fund..................... 39,088 852 875 (23) 38,139
Short/Intermediate Fixed
Income Securities Fund... 122,711 2,410 2,424 (14) 126,845
- ---------------------------------------------------------------------------------------------
</TABLE>
** At amortized cost.
(See Notes which are an integral part of the Financial Statements)
CONCENTRATION OF CREDIT RISK
The Monitor Ohio Municipal Money Market Fund and The Monitor Ohio Tax-Free
Fund, invest in debt instruments of Municipal issuers. The issuers' abilities
to meet their obligations may be affected by economic developments in a
specific state or region.
The Funds invest in securities which include revenue bonds, tax exempt
commercial paper, tax and revenue anticipation notes, and general obligation
bonds. At December 31, 1997, the percentage of portfolio investments by each
revenue source were as follows:
<TABLE>
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND THE MONITOR OHIO TAX-FREE FUND
<S> <C> <C> <C>
Revenue Bonds: Revenue Bonds:
Lease Bonds................................. 2.1% Lease Bonds................................. 6.3%
Hospital Bonds.............................. 13.8% Hospital Bonds.............................. 9.3%
Health Care Bonds........................... 13.1% Health Care Bonds........................... 1.7%
Higher Education Bonds...................... 10.3% Higher Education Bonds...................... 11.0%
Industrial Bonds............................ 16.8% Industrial Bonds............................ 0.7%
School Bonds................................ 0.7% School Bonds................................ 2.4%
Utility Bonds............................... 11.8% Utility Bonds............................... 11.4%
General Obligation........................... 31.4% General Obligation........................... 57.2%
</TABLE>
20
<PAGE>
[This Page Intentionally Left Blank]
21
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets & Liabilities
- --------------------------------------------------------------------------------
DECEMBER 31, 1997
(All numbers in thousands except net asset values
and offering price per share)
<TABLE>
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............... $512,734 $155,004 $267,316
Investments in repurchase 54,009 -- 276,323
agreements........................
Cash............................... -- -- --
Dividends and interest receivable.. 38 1,055 88
Receivable for Fund shares sold.... 10 -- --
- --------------------------------------------------------------------------------
Total assets...................... 566,791 156,059 543,727
- --------------------------------------------------------------------------------
LIABILITIES:
Payable for Fund shares redeemed... 193 -- --
Payable for securities purchased -- -- --
(dollar roll transactions) .......
Dividend payable................... 1,908 413 2,208
ACCRUED EXPENSES:
Investment advisory fees........... 137 46 93
Administrative personnel and 51 15 51
services..........................
Custodian and recordkeeping fees 26 8 26
and expenses......................
Distribution service fees -- 13 7 5
Investment Shares................
Other.............................. 28 6 38
- --------------------------------------------------------------------------------
Total liabilities................. 2,356 495 2,421
- --------------------------------------------------------------------------------
NET ASSETS:
Paid-in-capital.................... 564,435 155,576 541,306
Net unrealized appreciation -- -- --
(depreciation) of investments.....
Accumulated net realized gain -- (12) --
(loss) on investments.............
Undistributed net investment -- -- --
income............................
- --------------------------------------------------------------------------------
Total Net Assets.................. $564,435 $155,564 $541,306
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
Trust Shares....................... 424,050 72,667 483,548
Investment Shares.................. 140,385 82,897 57,758
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....................... 424,050 72,675 483,550
Investment Shares.................. 140,385 82,901 57,759
- --------------------------------------------------------------------------------
Total shares outstanding ($0.001 564,435 155,576 541,309
par value)........................
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Investments, at identified cost.... $566,743 $155,004 $543,639
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Computation of Offering price: 100/96 of net asset value.
** Computation of Offering price: 100/98 of net asset value.
***Computation of Offering price: 100/94.5 of net asset value.
(See Notes which are an integral part of the Financial Statements)
Statements of Operations
YEAR ENDED DECEMBER 31, 1997
(All numbers in thousands)
<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.................... $ 26,749 $ 5,080 $ 29,562
Dividend income.................... -- -- --
- --------------------------------------------------------------------------------
Total income...................... 26,749 5,080 29,562
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees........... 1,439 414 1,103
Trustees' fees..................... 12 3 15
Administrative personnel and 529 152 607
services..........................
Custodian and recordkeeping fees 269 77 309
and expenses......................
Transfer and dividend disbursing 35 31 40
agent fees and expenses...........
Fund share registration costs...... 46 23 62
Auditing fees...................... 29 7 48
Legal fees......................... 11 3 14
Printing and postage............... 35 7 55
Insurance premiums................. 23 6 33
Distribution services fees -- 290 182 126
Investment Shares................
Miscellaneous...................... 2 1 3
- --------------------------------------------------------------------------------
Total expenses.................... 2,720 906 2,415
- --------------------------------------------------------------------------------
Deduct-
Waiver of investment advisory fees. -- (99) --
Waiver of distribution services (174) (109) (75)
fees..............................
- --------------------------------------------------------------------------------
NET EXPENSES....................... 2,546 698 2,340
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME.............. 24,203 4,382 27,222
- --------------------------------------------------------------------------------
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 $ 24,203 $ 4,382 $ 27,222
OPERATIONS........................
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
22
<PAGE>
<TABLE>
<CAPTION>
MONITOR MONITOR MONITOR
MONITOR OHIO FIXED MONITOR SHORT/INTERMEDIATE
MONITOR INCOME TAX- INCOME MORTGAGE FIXED INCOME
GROWTH EQUITY FREE SECURITIES SECURITIES SECURITIES
FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$233,476 $214,082 $65,254 $152,358 $37,915 $125,121
-- -- -- -- 2,025 --
-- -- 92 -- 1 --
267 971 513 2,747 285 2,054
102 2 -- 1 -- --
- ------------------------------------------------------------------------------
233,845 215,055 65,859 155,106 40,226 127,175
- ------------------------------------------------------------------------------
43 5 16 3 29 243
-- -- -- -- 2,005 --
-- -- -- -- -- --
117 109 28 65 17 54
21 19 6 14 4 11
11 10 3 7 13 6
1 -- -- -- -- --
29 8 13 28 19 16
- ------------------------------------------------------------------------------
222 151 66 117 2,087 330
- ------------------------------------------------------------------------------
132,182 126,264 62,384 148,930 60,923 125,135
101,434 88,600 3,396 6,034 852 2,410
-- -- -- (20) (23,662) (714)
7 40 13 45 26 14
- ------------------------------------------------------------------------------
$233,623 $214,904 $65,793 $154,989 $38,139 $126,845
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
228,138 214,625 64,325 153,374 37,057 126,845
5,485 279 1,468 1,615 1,082 --
$ 43.48 $ 36.30 $ 21.74 $ 21.41 $ 8.24 $ 20.04
$ 43.46 $ 36.29 $ 21.73 $ 21.41 $ 8.26 --
$ 43.48 $ 36.30 $ 21.74 $ 21.41 $ 8.24 $ 20.04
$ 45.27* $ 38.40*** $ 22.17** $ 21.85** $ 8.43** --
5,247 5,913 2,959 7,165 4,498 6,329
126 8 68 75 131 --
- ------------------------------------------------------------------------------
5,373 5,921 3,027 7,240 4,629 6,329
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
$132,042 $125,482 $61,858 $146,324 $39,088 $122,711
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<CAPTION>
MONITOR MONITOR MONITOR
MONITOR OHIO FIXED MONITOR SHORT/INTERMEDIATE
MONITOR INCOME TAX- INCOME MORTGAGE FIXED INCOME
GROWTH EQUITY FREE SECURITIES SECURITIES SECURITIES
FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 321 $ 2,359 $ 3,564 $ 10,385 $ 2,884 $ 8,289
2,861 5,269 -- -- -- --
- ------------------------------------------------------------------------------
3,182 7,628 3,564 10,385 2,884 8,289
- ------------------------------------------------------------------------------
1,249 1,175 328 746 205 623
3 4 1 2 1 2
229 215 72 164 45 137
117 110 37 83 44 70
27 27 18 26 23 26
19 21 8 16 22 18
4 10 2 2 1 2
4 4 1 3 1 2
4 9 2 3 1 3
6 8 2 5 1 5
12 -- 4 4 7 --
1 7 -- 1 7 2
- ------------------------------------------------------------------------------
1,675 1,590 475 1,055 358 890
- ------------------------------------------------------------------------------
-- -- -- -- (82) --
-- -- -- -- (3) --
- ------------------------------------------------------------------------------
1,675 1,590 475 1,055 273 890
- ------------------------------------------------------------------------------
1,507 6,038 3,089 9,330 2,611 7,399
- ------------------------------------------------------------------------------
11,145 3,824 24 1,205 303 (337)
50,540 35,379 736 2,141 484 819
- ------------------------------------------------------------------------------
61,685 39,203 760 3,346 787 482
- ------------------------------------------------------------------------------
$ 63,192 $ 45,241 $ 3,849 $ 12,676 $ 3,398 $ 7,881
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</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,
1997 1996 1997 1996 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS--
Net investment income $ 24,203 $ 20,556 $ 4,382 $ 3,605 $ 27,222 $ 21,966 $ 1,507 $ 2,043
Net realized gain (loss)
on investment
transactions -- -- -- -- -- -- 11,145 8,154
Change in net unrealized
appreciation
(depreciation) of
investments -- -- -- -- -- -- 50,540 15,748
- ------------------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 24,203 20,556 4,382 3,605 27,222 21,966 63,192 25,945
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM--
Net investment income:
Trust Shares (18,452) (15,979) (2,112) (1,654) (24,783) (19,879) (1,480) (2,017)
Investment Shares (5,751) (4,577) (2,270) (1,951) (2,439) (2,087) (24) (40)
Net realized gain on
investments:
Trust Shares -- -- -- -- -- -- (10,892) (7,963)
Investment Shares -- -- -- -- -- -- (253) (192)
- ------------------------------------------------------------------------------------------------------------------
Change in net assets
from distributions to
shareholders (24,203) (20,556) (4,382) (3,605) (27,222) (21,966) (12,649) (10,212)
- ------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--
Trust Shares:
Proceeds from Shares
Issued 642,026 771,826 127,512 93,400 1,193,708 1,116,651 21,218 29,335
Reinvestment of
Distributions 15 37 -- 1 27 23 4,292 3,323
Cost of Shares Redeemed (555,953) (730,666) (111,499) (93,303) (1,184,780) (919,223) (22,496) (15,669)
- ------------------------------------------------------------------------------------------------------------------
Total Trust Shares
Transactions 86,088 41,197 16,013 98 8,955 197,451 3,014 16,989
- ------------------------------------------------------------------------------------------------------------------
Investment Shares:
Proceeds from Shares
Issued 212,817 135,440 150,492 118,303 150,381 114,039 536 483
Reinvestment of
Distributions 4,422 3,935 349 412 930 1,284 274 230
Cost of Shares Redeemed (174,411) (133,105) (142,046) (100,077) (141,437) (106,412) (793) (584)
- ------------------------------------------------------------------------------------------------------------------
Total Investment Shares
Transactions 42,828 6,270 8,795 18,638 9,874 8,911 17 129
- ------------------------------------------------------------------------------------------------------------------
Change in net assets
from Fund shares
transactions 128,916 47,467 24,808 18,736 18,829 206,362 3,031 17,118
- ------------------------------------------------------------------------------------------------------------------
Total change in Net
Assets 128,916 47,467 24,808 18,736 18,829 206,362 53,574 32,851
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 435,519 388,052 130,756 112,020 522,477 316,115 180,049 147,198
- ------------------------------------------------------------------------------------------------------------------
End of period $ 564,435 $ 435,519 $ 155,564 $ 130,756 $ 541,306 $ 522,477 $233,623 $180,049
==================================================================================================================
Undistributed net
investment income
included in net assets
at end of period -- -- -- -- -- -- $ 7 $ 4
- ------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED--
Trust Shares:
Shares issued 642,026 771,826 127,512 93,400 1,193,708 1,116,651 546 897
Reinvestment of
Distributions 15 37 -- 1 27 23 102 98
Shares redeemed (555,953) (730,666) (111,499) (93,303) (1,184,780) (919,223) (576) (475)
- ------------------------------------------------------------------------------------------------------------------
Total Trust Shares
Transactions 86,088 41,197 16,013 98 8,955 197,451 72 520
- ------------------------------------------------------------------------------------------------------------------
Investment Shares:
Shares issued 212,817 135,440 150,492 118,303 150,381 114,039 14 15
Reinvestment of
Distributions 4,422 3,935 349 412 930 1,284 6 7
Shares redeemed (174,411) (133,105) (142,046) (100,077) (141,437) (106,412) (20) (18)
- ------------------------------------------------------------------------------------------------------------------
Total Investment Shares
Transactions 42,828 6,270 8,795 18,638 9,874 8,911 -- 4
- ------------------------------------------------------------------------------------------------------------------
Net change in Fund share
transactions 128,916 47,467 24,808 18,736 18,829 206,362 72 524
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
24
<PAGE>
<TABLE>
MONITOR SHORT/
MONITOR FIXED INTERMEDIATE FIXED
MONITOR INCOME MONITOR OHIO INCOME SECURITIES MONITOR MORTGAGE INCOME SECURITIES
EQUITY FUND TAX-FREE FUND FUND SECURITIES FUND FUND
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,
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 6,038 $ 5,579 $ 3,089 $ 2,951 $ 9,330 $ 8,890 $ 2,611 $ 3,241 $ 7,399 $ 7,296
3,824 2,817 24 4 1,205 996 303 (1,934) (337) 80
35,379 16,650 736 (769) 2,141 (6,268) 484 1,547 819 (2,269)
- ----------------------------------------------------------------------------------------------------------------
45,241 25,046 3,849 2,186 12,676 3,618 3,398 2,854 7,881 5,107
- ----------------------------------------------------------------------------------------------------------------
(6,057) (5,542) (3,029) (2,861) (9,200) (8,840) (2,454) (3,067) (7,408) (7,408)
(2) -- (78) (92) (103) (124) (82) (120) -- --
(3,819) (2,850) (18) -- -- -- -- -- -- --
(5) -- -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
(9,883) (8,392) (3,125) (2,953) (9,303) (8,964) (2,536) (3,187) (7,408) (7,408)
- ----------------------------------------------------------------------------------------------------------------
19,581 26,867 7,624 13,886 20,505 22,286 2,800 2,565 15,526 15,023
3,169 2,760 185 168 3,660 3,424 187 228 3,348 3,221
(16,240) (15,406) (8,988) (8,388) (18,168) (17,837) (6,332) (15,573) (18,016) (24,380)
- ----------------------------------------------------------------------------------------------------------------
6,510 14,221 (1,179) 5,666 5,997 7,873 (3,345) (12,780) 858 (6,136)
- ----------------------------------------------------------------------------------------------------------------
263 -- 124 261 93 186 13 61 -- --
7 -- 61 72 76 93 55 84 -- --
(1) -- (636) (565) (439) (516) (678) (476) -- --
- ----------------------------------------------------------------------------------------------------------------
269 -- (451) (232) (270) (237) (610) (331) -- --
- ----------------------------------------------------------------------------------------------------------------
6,779 14,221 (1,630) 5,434 5,727 7,636 (3,955) (13,111) 858 (6,136)
- ----------------------------------------------------------------------------------------------------------------
42,137 30,875 (906) 4,667 9,100 2,290 (3,093) (13,443) 1,331 (8,437)
- ----------------------------------------------------------------------------------------------------------------
172,767 141,892 66,699 62,032 145,889 143,599 41,232 54,675 125,514 133,951
- ----------------------------------------------------------------------------------------------------------------
$214,904 $172,767 $65,793 $66,699 $154,989 $145,889 $38,139 $ 41,232 $ 126,845 $ 125,514
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
$ 40 $ 61 $ 13 $ 31 $ 44 $ 17 $ 75 $ -- $ (14) $ 23
- ----------------------------------------------------------------------------------------------------------------
595 940 355 648 979 1,065 347 320 780 752
93 95 8 8 175 164 23 28 168 162
(485) (532) (420) (390) (868) (845) (779) (1,951) (906) (1,210)
- ----------------------------------------------------------------------------------------------------------------
203 503 (57) 266 286 384 (409) (1,603) 42 (296)
- ----------------------------------------------------------------------------------------------------------------
8 -- 6 12 4 9 2 8 -- --
-- -- 3 3 4 4 7 10 -- --
-- -- (29) (26) (21) (25) (84) (59) -- --
- ----------------------------------------------------------------------------------------------------------------
8 -- (20) (11) (13) (12) (75) (41) -- --
- ----------------------------------------------------------------------------------------------------------------
211 503 (77) 255 273 372 (484) (1,644) 42 (296)
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
MONEY MARKET FUNDS
(For a share outstanding throughout the 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
1997 $ 1.00 0.05 (0.05) $1.00 5.17%
1996 $ 1.00 0.05 (0.05) $1.00 5.01%
1995 $ 1.00 0.05 (0.05) $1.00 5.58%
1994 $ 1.00 0.04 (0.04) $1.00 3.86%
1993 $ 1.00 0.03 (0.03) $1.00 2.74%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
1997 $ 1.00 0.03 (0.03) $1.00 3.27%
1996 $ 1.00 0.03 (0.03) $1.00 3.14%
1995 $ 1.00 0.04 (0.04) $1.00 3.57%
1994 $ 1.00 0.02 (0.02) $1.00 2.41%
1993 $ 1.00 0.02 (0.02) $1.00 2.08%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1997 $ 1.00 0.05 (0.05) $1.00 5.06%
1996 $ 1.00 0.05 (0.05) $1.00 4.98%
1995 $ 1.00 0.05 (0.05) $1.00 5.53%
1994 $ 1.00 0.04 (0.04) $1.00 3.79%
1993 $ 1.00 0.03 (0.03) $1.00 2.77%
INVESTMENT SHARES
THE MONITOR MONEY MARKET FUND
1997 $ 1.00 0.05 (0.05) $1.00 5.07%
1996 $ 1.00 0.05 (0.05) $1.00 4.90%
1995 $ 1.00 0.05 (0.05) $1.00 5.48%
1994 $ 1.00 0.04 (0.04) $1.00 3.76%
1993 $ 1.00 0.03 (0.03) $1.00 2.63%
THE MONITOR OHIO MUNICIPAL MONEY
MARKET FUND
1997 $ 1.00 0.03 (0.03) $1.00 3.17%
1996 $ 1.00 0.03 (0.03) $1.00 3.04%
1995 $ 1.00 0.03 (0.03) $1.00 3.47%
1994 $ 1.00 0.02 (0.02) $1.00 2.31%
1993 $ 1.00 0.02 (0.02) $1.00 1.98%
THE MONITOR U.S. TREASURY MONEY
MARKET FUND
1997 $ 1.00 0.05 (0.05) $1.00 4.95%
1996 $ 1.00 0.05 (0.05) $1.00 4.87%
1995 $ 1.00 0.05 (0.05) $1.00 5.43%
1994 $ 1.00 0.04 (0.04) $1.00 3.68%
1993(a) $ 1.00 0.01 (0.01) $1.00 0.54%(e)
--------------------------------------------------------------------------
</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, if
applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(e) Not annualized.
(See Notes which are an integral part of the Financial Statements)
26
<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>
0.51% 5.06% -- $424,050
0.53% 4.90% -- $337,962
0.53% 5.44% 0.03% $296,764
0.51% 3.75% 0.02% $287,805
0.51% 2.70% 0.02% $337,276
0.45% 3.23% 0.07% $ 72,667
0.42% 3.10% 0.12% $ 56,654
0.42% 3.52% 0.20% $ 56,551
0.45% 2.40% 0.19% $ 39,624
0.45% 2.07% 0.20% $ 40,141
0.42% 4.95% -- $483,548
0.42% 4.87% -- $474,593
0.43% 5.40% 0.01% $277,142
0.42% 3.76% 0.02% $256,538
0.40% 2.74% 0.03% $231,123
0.61% 4.96% 0.15% $140,385
0.63% 4.80% -- $ 97,557
0.63% 5.30% 0.03% $ 91,288
0.61% 3.85% 0.02% $ 41,629
0.61% 2.60% 0.02% $ 21,583
0.55% 3.13% 0.22% $ 82,897
0.52% 3.00% 0.12% $ 74,102
0.52% 3.42% 0.20% $ 55,469
0.55% 2.30% 0.19% $ 37,134
0.55% 1.88% 0.20% $ 20,312
0.52% 4.85% 0.15% $ 57,758
0.52% 4.77% 0.15% $ 47,884
0.53% 5.28% 0.18% $ 38,973
0.52% 3.66% 0.17% $ 20,390
0.50%(c) 2.65%(c) 0.16%(c) $ 948
-------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
EQUITY FUNDS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
NET REALIZED DISTRIBUTIONS TO SHAREHOLDERS
NET ASSET AND SHAREHOLDERS FROM NET
YEAR ENDED VALUE, NET UNREALIZED TOTAL FROM FROM NET REALIZED GAIN
DECEMBER BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT
31, OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR GROWTH FUND
1997 $33.97 0.29 11.63 11.92 (0.29) (2.12)
1996 $30.81 0.40 4.72 5.12 (0.40) (1.56)
1995 $26.30 0.43 7.62 8.05 (0.43) (3.11)
1994 $26.17 0.39 0.21 0.60 (0.40) (0.07)
1993 $25.76 0.46 0.44 0.90 (0.47) (0.02)
THE MONITOR INCOME EQUITY FUND
1997 $30.26 1.03 6.70 7.73 (1.04) (0.65)
1996 $27.25 1.00 3.51 4.51 (1.00) (0.50)
1995 $21.93 0.94 5.34 6.28 (0.96) --
1994 $23.21 0.88 (1.29) (0.41) (0.87) --
1993 $21.70 0.74 1.57 2.31 (0.74) (0.06)
INVESTMENT SHARES
THE MONITOR GROWTH FUND
1997 $33.96 0.19 11.63 11.82 (0.20) (2.12)
1996 $30.81 0.31 4.73 5.04 (0.33) (1.56)
1995 $26.31 0.35 7.61 7.96 (0.35) (3.11)
1994 $26.16 0.33 0.22 0.55 (0.33) (0.07)
1993 $25.76 0.40 0.43 0.83 (0.41) (0.02)
THE MONITOR INCOME EQUITY FUND(A)
1997 $31.20 0.65 5.72 6.37 (0.63) (0.65)
- --------------------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from May 1, 1997 (effective date of
Investment Shares) to December 31, 1997.
(b) Based on net asset value, which does not reflect the sales load, if
applicable.
(c) Computed on annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(e) 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.
(f) Not annualized.
(See Notes which are an integral part of the Financial Statements)
28
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
NET ASSET ---------------------------------------
VALUE NET EXPENSE WAIVER NET ASSETS, PORTFOLIO AVERAGE
TOTAL END OF TOTAL INVESTMENT REDUCTION/ END OF PERIOD TURNOVER COMMISSION
DISTRIBUTIONS PERIOD RETURN(B) EXPENSES INCOME REIMBURSEMENT(D) (000 OMITTED) RATE RATE(E)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(2.40) $43.48 35.37% 0.80% 0.73% -- $228,138 12% $0.0607
(1.96) $33.97 16.72% 0.83% 1.20% -- $175,764 21% $0.0452
(3.54) $30.81 30.75% 0.86% 1.34% 0.05% $143,421 37% n/a
(0.47) $26.30 2.28% 0.88% 1.52% 0.04% $103,463 42% n/a
(0.49) $26.17 3.53% 0.84% 1.79% 0.04% $109,576 29% n/a
(1.69) $36.30 25.99% 0.81% 3.08% -- $214,625 24% $0.0602
(1.50) $30.26 16.88% 0.82% 3.50% -- $172,767 25% $0.0352
(0.96) $27.25 29.26% 0.82% 3.85% -- $141,892 17% n/a
(0.87) $21.93 (1.82%) 0.84% 3.91% -- $115,399 50% n/a
(0.80) $23.21 10.85% 0.82% 3.29% -- $135,618 10% n/a
(2.31) $43.46 35.04% 1.05% 0.48% -- $ 5,485 12% $0.0607
(1.89) $33.96 16.43% 1.08% 0.93% -- $ 4,285 21% $0.0452
(3.46) $30.81 30.40% 1.11% 1.08% 0.05% $ 3,777 37% n/a
(0.40) $26.31 2.08% 1.13% 1.27% 0.04% $ 3,212 42% n/a
(0.43) $26.16 3.25% 1.10% 1.54% 0.04% $ 3,961 29% n/a
(1.28) $36.29 16.09%(f) 1.08%(c) 2.76%(c) -- $ 279 24% $0.0602
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
FIXED INCOME FUNDS
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
DISTRIBUTIONS TO SHAREHOLDERS
NET ASSET NET REALIZED SHAREHOLDERS FROM NET
VALUE, NET AND UNREALIZED TOTAL FROM FROM NET REALIZED GAIN
YEAR ENDED BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT
DECEMBER 31, OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------
TRUST SHARES
THE MONITOR OHIO TAX-FREE FUND
<S> <C> <C> <C> <C> <C> <C>
1997 $ 21.49 1.01 0.27 1.28 (1.02) (0.01)
1996 $ 21.77 1.01 (0.28) 0.73 (1.01) --
1995 $ 20.50 1.01 1.27 2.28 (1.01) --
1994 $ 22.04 0.99 (1.55) (0.56) (0.98) --
1993 $ 21.31 0.96 0.73 1.69 (0.96) --
THE MONITOR FIXED INCOME SECURITIES FUND
1997 $ 20.94 1.31 0.47 1.78 (1.31) --
1996 $ 21.78 1.34 (0.83) 0.51 (1.35) --
1995 $ 19.69 1.34 2.09 3.43 (1.34) --
1994 $ 22.03 1.28 (2.28) (1.00) (1.34) --
1993 $ 21.32 1.28 0.88 2.16 (1.39) (0.06)
THE MONITOR MORTGAGE SECURITIES FUND
1997(d) $ 8.06 0.52 0.16 0.68 (0.50) --
1996(d) $ 8.09 0.55 (0.04) 0.51 (0.54) --
1995(d) $ 6.69 0.55 1.46 2.01 (0.55) --
1994(d) $ 9.93 0.89 (3.19) (2.30) (0.93) --
1993(d) $ 10.27 1.50 (0.28) 1.22 (1.46) (0.10)
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
1997 $ 19.96 1.19 0.08 1.27 (1.19) --
1996 $ 20.35 1.17 (0.37) 0.80 (1.19) --
1995 $ 19.14 1.18 1.21 2.39 (1.18) --
1994 $ 20.57 1.13 (1.33) (0.20) (1.23) --
1993 $ 20.63 1.19 0.31 1.50 (1.31) (0.25)
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
1997 $ 21.48 0.98 0.25 1.23 (0.97) (0.01)
1996 $ 21.77 0.96 (0.29) 0.67 (0.96) --
1995 $ 20.50 0.96 1.27 2.23 (0.96) --
1994 $ 22.04 0.94 (1.56) (0.62) (0.92) --
1993 $ 21.31 0.90 0.73 1.63 (0.90) --
THE MONITOR FIXED INCOME SECURITIES FUND
1997 $ 20.95 1.25 0.47 1.72 (1.26) --
1996 $ 21.78 1.29 (0.83) 0.46 (1.29) --
1995 $ 19.70 1.29 2.09 3.38 (1.30) --
1994 $ 22.04 1.23 (2.29) (1.06) (1.28) --
1993 $ 21.32 1.19 0.92 2.11 (1.33) (0.06)
THE MONITOR MORTGAGE SECURITIES FUND
1997(d) $ 8.08 0.50 0.17 0.67 (0.49) --
1996(d) $ 8.12 0.53 (0.04) 0.49 (0.53) --
1995(d) $ 6.70 0.55 1.46 2.01 (0.55) --
1994(d) $ 9.94 0.87 (3.19) (2.32) (0.91) --
1993(d) $ 10.27 1.47 (0.27) 1.20 (1.43) (0.10)
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
DISTRIBUTIONS
IN EXCESS
OF NET
YEAR ENDED INVESTMENT
DECEMBER 31, INCOME(A)
- ------------------------------------------------------------
TRUST SHARES
THE MONITOR OHIO TAX-FREE FUND
1997 --
1996 --
1995 --
1994 --
1993 --
THE MONITOR FIXED INCOME SECURITIES FUND
1997 --
1996 --
1995 --
1994 --
1993 --
THE MONITOR MORTGAGE SECURITIES FUND
1997(d) --
1996(d) --
1995(d) (0.06)
1994(d) (0.01)
1993(d) --
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
1997 --
1996 --
1995 --
1994 --
1993 --
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
1997 --
1996 --
1995 --
1994 --
1993 --
THE MONITOR FIXED INCOME SECURITIES FUND
1997 --
1996 --
1995 --
1994 --
1993 --
THE MONITOR MORTGAGE SECURITIES FUND
1997(d) --
1996(d) --
1995(d) (0.04)
1994(d) (0.01)
1993(d) --
- ------------------------------------------------------------
</TABLE>
(a) 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.
(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) 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)
30
<PAGE>
<TABLE>
<CAPTION>
RATIO 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(B) EXPENSES INCOME REIMBURSEMENT(C) OMITTED) RATE
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(1.03) $21.74 6.11% 0.72% 4.72% -- $ 64,325 14%
(1.01) $21.49 3.48% 0.76% 3.48% -- $ 64,799 6%
(1.01) $21.77 11.35% 0.78% 4.74% 0.08% $ 59,869 13%
(0.98) $20.50 (2.57%) 0.77% 4.68% 0.04% $ 56,469 12%
(0.96) $22.04 8.08% 0.82% 4.39% 0.04% $ 59,541 2%
(1.31) $21.41 8.83% 0.70% 6.26% -- $153,374 116%
(1.35) $20.94 2.56% 0.74% 6.39% -- $144,038 16%
(1.34) $21.78 17.95% 0.77% 6.41% 0.05% $141,423 20%
(1.34) $19.69 (4.62%) 0.75% 6.26% 0.04% $119,117 23%
(1.45) $22.03 10.32% 0.74% 5.87% 0.04% $112,103 7%
(0.50) $ 8.24 8.77% 0.66% 6.39% 0.20% $ 37,057 63%
(0.54) $ 8.06 6.56% 0.67% 6.86% 0.29% $ 39,566 90%
(0.61) $ 8.09 31.10% 0.49% 7.29% 0.63% $ 52,667 194%
(0.94) $ 6.69 (24.59%) 0.88% 11.16% 0.12% $ 54,164 91%
(1.56) $ 9.93 12.10% 0.78% 14.20% 0.04% $ 90,461 154%
(1.19) $20.04 6.56% 0.71% 5.94% -- $126,845 160%
(1.19) $19.96 4.08% 0.72% 5.83% -- $125,514 39%
(1.18) $20.35 12.81% 0.74% 5.93% -- $133,951 40%
(1.23) $19.14 (0.98%) 0.72% 5.76% -- $125,112 38%
(1.56) $20.57 7.43% 0.71% 5.70% -- $123,897 24%
(0.98) $21.73 5.88% 0.97% 4.47% -- $ 1,468 14%
(0.96) $21.48 3.20% 1.01% 3.24% -- $ 1,900 6%
(0.96) $21.77 11.10% 1.03% 4.49% 0.08% $ 2,163 13%
(0.92) $20.50 (2.83%) 1.02% 4.43% 0.04% $ 2,307 12%
(0.90) $22.04 7.78% 1.07% 4.13% 0.04% $ 2,838 2%
(1.26) $21.41 8.54% 0.95% 6.01% -- $ 1,615 116%
(1.29) $20.95 2.32% 0.99% 6.12% -- $ 1,851 16%
(1.30) $21.78 17.63% 1.02% 6.17% 0.05% $ 2,176 20%
(1.28) $19.70 (4.88%) 1.00% 6.01% 0.04% $ 1,958 23%
(1.39) $22.04 10.07% 0.99% 5.61% 0.04% $ 2,563 7%
(0.49) $ 8.26 8.54% 0.91% 6.16% 0.45% $ 1,082 63%
(0.53) $ 8.08 6.25% 0.92% 6.57% 0.53% $ 1,666 90%
(0.59) $ 8.12 31.13% 0.76% 7.40% 0.73% $ 2,008 194%
(0.92) $ 6.70 (24.72%) 1.13% 10.91% 0.37% $ 4,259 91%
(1.53) $ 9.94 11.94% 1.03% 13.95% 0.29% $ 8,533 154%
- -------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements
- --------------------------------------------------------------------------------
DECEMBER 31, 1997
(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
The Funds each offer two classes of shares ("Trust Shares" and "Investment
Shares"). As of December 31, 1997, Short/Intermediate Fixed Income Investment
Shares class had no outstanding 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
(GAAP). The preparation of financial statements in accordance with GAAP
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 bid
price. Unlisted equity securities are valued at the latest bid prices. Bonds
and other fixed income securities held by all the Funds (other than 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, approved by the Trustees,
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 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.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Dividend income and distributions to shareholders are recorded on the ex-
dividend date. Interest income and
32
<PAGE>
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized, as required by the Internal Revenue Code, as amended (the "Code")
which does not differ materially from GAAP. For stripped mortgage backed
securities, Mortgage Securities uses the constant yield method for income
recognition purposes.
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses for the Funds are allocated daily to each class of
shares based upon the relative proportion of net assets represented by such
class. Distribution fees are charged directly to such class.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from GAAP. These
differences are primarily due to the tax nature of distributions. As of
December 31, 1997, $48,439 has been reclassified from Mortgage Securities'
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, 1997, Fixed Income, Short/Intermediate Fixed Income, Ohio
Municipal Money Market and Mortgage Securities 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:
YEAR AND AMOUNT OF EXPIRATION
<TABLE>
<CAPTION>
2001 2002 2003 2004 2005 TOTAL
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fixed Income -- -- 19,465 -- -- $ 19,465
Short/
Intermediate Fixed
Income -- 120,517 256,995 -- 336,976 $ 714,488
Ohio Municipal Money
Market 2,172 10,081 -- -- -- $ 12,253
Mortgage Securities -- 10,395,707 10,841,602 2,425,056 -- $23,662,265
- -------------------------------------------------------------------------------
</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. Fee income of $36,880 is 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.
Gains or losses realized from the sale of securities are determined by
comparing the identified cost of the security sold with the net sales proceeds.
(3) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--The Huntington National Bank, 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 Advisor
waived 0.07% for Ohio Municipal Money Market and 0.20% for Mortgage Securities.
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 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--SEI Fund Resources ("SFR") serves as administrator to each
Fund under an Administration Agreement. SFR is entitled to receive an annual
fee of 0.11% of each Fund's average net assets, paid monthly, for services
performed under the Administration Agreement. SFR has entered into an agreement
with The Huntington National Bank ("Huntington") pursuant to which Huntington
provides certain administrative services to the Funds. Huntington receives from
SFR, an annual fee of 0.05% of each Fund's average net assets, which is paid
monthly for services performed. SEI Investment Distribution Co. ("SIDCO") acts
as the Fund's Distributor pursuant to a distribution agreement. SEI Investment
Management Corporation, a wholly-owned subsidiary of SEI Investment Company, is
owner of all beneficial interests in SFR. SIDCO is a wholly-owned subsidiary of
SEI Investment Company.
DISTRIBUTION PLAN-- The Funds have adopted a Distribution Plan pursuant to Rule
12b-1 under the 1940 Act (the "Distribution Plan"). The Distribution Plan
provides for payments to be made to the Distributor (SIDCO) in connection with
the provision of certain services (described below) with respect to the Funds'
Investment Shares.
33
<PAGE>
In accordance with the Distribution Plan, the Distributor may enter into
agreements with brokers and dealers relating to distribution and/or
administrative services with respect to the Investment Shares of the Funds. The
Distributor may also enter into agreements with administrators (including
financial institutions, fiduciaries, custodians for public funds, and
investment advisers) to provide administrative services with respect to
Investment Shares.
In connection with the provision of the distribution and administrative
services described above, the Distributor will pay brokers, dealers and
administrators (including The Huntington Investment Company) a fee based on the
amount of Investment Shares owned by their customers. For all of the Funds
except Mortgage Securities Fund amounts paid by the Distributor for services
rendered with respect to a Fund's Investment Shares will be reimbursed by the
Fund in an amount which may not exceed an annual rate of 0.25 of 1% of the
average daily net assets attributable to the Fund's Investment Shares held in
customer accounts for which brokers, dealers, and administrators provide such
services. For Mortgage Securities Fund, the amounts that may be reimbursed by
the Fund may not exceed an annual rate of 0.50 of 1% of the Fund's average
daily net assets. Money Market, Ohio Municipal Money Market, and U.S. Treasury
Money Market voluntarily limited fees to 0.10%. Mortgage Securities voluntarily
limited fees to 0.25%.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES, PORTFOLIO ACCOUNTING
AND CUSTODIAN FEES-- SFR 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. ADS received $35,000 plus out-of-pocket expenses for services
rendered for the twelve month period ended December 31, 1997. Huntington
receives an annual fee based on the level of each Fund's average daily net
assets, with the exception of 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 twelve month period ended December 31, 1997, certain Officers of the
Trust were Officers of SFR and SIDCO. Such Officers receive no compensation
from the Trust.
Huntington received $10,926 from commissions earned on sales of Investment
Shares of the variable net asset value funds which was paid to affiliate
broker/dealers of the Funds.
(4) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended December 31, 1997 were as follows:
<TABLE>
<CAPTION>
INVESTMENT SECURITIES
---------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases $23,928,191 $47,877,372 $9,148,229
Sales $35,540,655 $11,992,698 $11,990,063
- -------------------------------------------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases $21,487,212 -- $18,332,098
Sales $11,656,225 -- $22,875,336
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS
---------------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases -- $11,169,240 --
Sales -- $32,239,325 --
- --------------------------------------------------------------------------------
<CAPTION>
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases $150,915,546 $24,988,345 $175,749,688
Sales $155,783,335 $28,507,255 $169,978,359
- --------------------------------------------------------------------------------
</TABLE>
(5) INVESTMENT CONCENTRATION
Ohio Municipal Money Market and Ohio Tax-Free 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 instrumentality 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.
(6) SUBSEQUENT EVENT
On October 1, 1997, First Michigan Bank Corp. was merged into Huntington
Bancshares, Incorporated. On March 17, 1998 the shareholders of the FMB Funds,
Inc. will meet to consider and act upon a recommendation to approve an
Agreement and Plan of Reorganization, approved by the Boards of Monitor Funds
and FMB Funds, Inc., providing for the transfer of all assets and liabilities
of the FMB Diversified Equity Fund, the FMB Intermediate Government Income
Fund, the FMB Michigan Tax-Free Fund, and the FMB Money Market Fund to
corresponding portfolios of The Monitor Funds in exchange for Investment and
Trust shares, as applicable, the distribution of such Monitor Portfolios shares
to the shareholders of the FMB Portfolios, according to their respective
interests, and the termination under state law and the Investment Company Act
of 1940, as amended, of FMB Funds, Inc.
34
<PAGE>
- --------------------------------------------------------------------------------
Explanation of the Indices & Ratings 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.
**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.
+LMI is not adjusted to reflect sales loads, expenses, or other fees that the
Securities and Exchange Commission requires to be reflected in the Fund's
performance. This index is unmanaged.
++The LUSMF represents the average of the total returns reported by all of
the mutual funds 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.
Moody's Corporate Long-Term Ratings
Aaa
Bonds which are rated AAA are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as "gilt
edged." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements
are likely to change, such changes as can be visualized are most unlikely to
impair the fundamentally strong position of such issues.
Aa
Bonds which are rated AA are judged to be of high quality by all standards.
Together with the AAA group they comprise what are generally known as high
grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in AAA Securities or fluctuation of
protective elements may be of greater amplitude or there may be other elements
present which make the long-term risk appear somewhat larger than the AAA
securities.
A
Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper-medium-grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment some time in the future.
Baa
Bonds which are rated BAA are considered as medium-grade obligations, (i.e.,
they are neither highly protected nor poorly secured). Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.
35
<PAGE>
Report of Independent Accountants
The Shareholders and Board of Trustees of The Monitor Funds:
We have audited the accompanying statements of assets and liabilities of The
Monitor Funds--Money Market Fund, Ohio Municipal Money Market Fund, U.S.
Treasury Money Market Fund, Growth Fund, Income Equity Fund, Ohio Tax-Free
Fund, Fixed Income Securities Fund, Mortgage Securities Fund and
Short/Intermediate Fixed Income Securities Fund, including the portfolio of
investments, as of December 31, 1997, and the related statements of operations,
statements of changes in net assets and the financial highlights for the
periods indicated herein. These financial statements and financial highlights
are the responsibility of The Monitor Funds' management. Our responsibility is
to express an opinion on these financial statements and financial highlights
based on our audits. The accompanying statements of changes in net assets for
the year ended December 31, 1996 and the financial highlights for the year
ended December 31, 1996, and prior periods as indicated herein, were audited by
other auditors whose report thereon dated February 14, 1997 expressed an
unqualified opinion on those statements and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards 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. Our procedures included verification
of securities owned as of December 31, 1997, by confirmation with the custodian
and brokers and other appropriate audit procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds comprising The Monitor Funds at December 31, 1997,
the results of their operations, the changes in their net assets and the
financial highlights for the periods indicated herein, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio February 13, 1998
36
<PAGE>
- --------------------------------------------------------------------------------
Notice to Shareholders of The Monitor Funds (Unaudited)
- --------------------------------------------------------------------------------
For the fiscal year ended December 31, 1997, each fund is designating long-term
and mid-term capital gains, qualifying dividends, and exempt income with regard
to distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
Long-Term Mid-Term (C)
Capital Capital Ordinary (D) (F)
Gains Gains Income Total (E) Tax
Distributions Distributions Distributions Distributions Qualifying Exempt
Fund Tax Basis Tax Basis Tax Basis Tax Basis Dividends(1) Interest
- ---- ------------- ------------- ------------- ------------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Money Market 0% 0% 100% 100% 0% 0%
Ohio Municipal Money Market 0% 0% 0% 100% 0% 100%
U.S. Treasury Money Market 0% 0% 100% 100% 0% 0%
Growth 70% 18% 12% 100% 100% 0%
Income Equity 0% 27% 73% 100% 100% 0%
Ohio Tax-Free 0% 1% 0% 100% 0% 99%
Fixed Income 0% 0% 100% 100% 0% 0%
Mortgage Securities 0% 0% 100% 100% 0% 0%
Short/Intermediate Fixed Income 0% 0% 100% 100% 0% 0%
</TABLE>
Please consult your tax advisor for proper treatment of this information.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction
* Items (A), (B) and (C) are based on a percentage of the Funds' total
distributions.
** Items (E) and (F) are based on a percentage of the Funds' ordinary income
distributions.
37
<PAGE>
- --------------------------------------------------------------------------------
Trustees Officers
- --------------------------------------------------------------------------------
David S. Schoedinger David G. Lee
President and Chief Executive Officer
John M. Shary
William R. Wise 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
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>
[LOGO OF MONITOR FUNDS APPEARS HERE]
THE HUNTINGTON
NATIONAL BANK,
a subsidiary of
Huntington Bancshares
Incorporated, is the
Investment Adviser,
Custodian, and
Recordkeeper of
The Monitor Funds.
SEI Investments
Distribution Co. is
the Distributor and is
not affiliated with The
Huntington National Bank.
[LOGO OF MONITOR FUNDS APPEARS HERE]
MONITOR FUNDS
(800) 253-0412
