<PAGE>
- --------------------------------------------------------------------------------
M O N I T O R F U N D S S E M I - A N N U A L R E P O R T
- --------------------------------------------------------------------------------
June 30, 1998
Trust Shares and Investment Shares
. Monitor Money Market Fund
. Monitor Ohio Municipal Money Market Fund
. Monitor U.S. Treasury Money Market Fund
. Monitor Growth Fund
. Monitor Income Equity Fund
. Monitor Michigan Tax-Free Fund
. Monitor Ohio Tax-Free Fund
. Monitor Fixed Income Securities Fund
. Monitor Intermediate Government Income Fund
. Monitor Mortgage Securities Fund
. Monitor Short/Intermediate Fixed Income Securities Fund
[LOGO OF MONITOR FUNDS APPEARS HERE]
<PAGE>
Message from the Investment Manager
Dear Shareholder:
I am pleased to present the Semi-Annual Report for The Monitor Funds for the
six-month period ended June 30, 1998. The "Investment Review" section is the
prelude to this report, featuring commentary from the Funds' portfolio
managers. In this section, you will find a discussion of recent market activity
as well as investment performance, fund activity and strategy presented by the
experienced professionals who make up our investment management team. Following
the "Investment Review" are complete listings of the portfolio holdings of the
Funds, and the comprehensive financial statements and highlights.
During the first of half of 1998, we saw the Treasury market trading in a
narrow range, with the 30-year bond trading at a high of 6.07% to a low of
5.80%. The Treasury market started to rally sharply toward the end of May on
flight-to-quality buying brought on by sharp drops in Asian currency valuations
and downturns in the global equity markets. This trend could continue through
the second half of 1998. The municipal market appears to be held hostage to the
trends exhibited in the Treasury market, but may offer value for investors
compared to Treasuries.
It is with great pride that I announce two additions to the Monitor Funds'
family: Monitor Intermediate Government Income Fund and Monitor Michigan Tax-
Free Fund. The successful reorganization of The FMB Funds* into The Monitor
Funds in March and April of this year has provided us with the opportunity to
broaden the investment choices available to you within the Monitor Funds'
family. THE MONITOR INTERMEDIATE GOVERNMENT INCOME FUND is a fixed income
option which seeks to provide a high level of current income by investing in a
combination of U. S. treasury, government agency, and high quality mortgage-
backed securities. The Fund is designed and managed for mid to long-term
investors who may have a low level of risk tolerance. THE MONITOR MICHIGAN TAX-
FREE FUND is a welcome addition to Monitor's assortment of tax exempt
investment options. The Monitor Michigan Tax-Free Fund seeks to provide a high
level of current income exempt from both Federal and Michigan personal income
taxes by investing primarily in bonds with short-to-intermediate remaining
maturities issued by the State of Michigan and its municipalities. This Fund
can be an attractive addition to the portfolio of our Michigan customers. Both
of our "new" Monitor Funds are managed by Duane Carpenter, Assistant Vice
President and portfolio manager of The Huntington National Bank. Please call
MONITORdirect at 1-800-253-0412 for a prospectus.
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 manage your
financial goals.
/s/ Richard W. Stenberg
Richard W. Stenberg
Senior Vice President and Director, Private Financial Group
The Huntington National Bank
August 15, 1998
- --------
* First Michigan Bank Corporation merged with Huntington Bancshares on October
1, 1997. The FMB Funds were reorganized into The Monitor Funds on March 27
and April 3, 1998.
1
<PAGE>
INVESTMENT REVIEW
MONEY MARKET FUNDS: MONITOR MONEY MARKET FUND, MONITOR OHIO MUNICIPAL MONEY
MARKET FUND, MONITOR U.S. TREASURY MONEY MARKET FUND (WILLIAM G. DOUGHTY, VICE
PRESIDENT AND PORTFOLIO MANAGER, HUNTINGTON NATIONAL BANK).
Federal Reserve officials, clinging to an unchanged policy, no doubt have been
comforted by indications that growth is cooling off at midyear. The
sluggishness in the second quarter output is probably temporary, however. With
the General Motors strike and Midwest power shortages threatening to add to
manufacturers' woes well into the summer, events could sustain this high
favorable outlook for bonds. During the first half of the year, the municipal
note market seemed to be in a state of repose as lack of supply and relatively
expensive levels caused buying to be minimal.
The average weighted maturity of the securities in each of the Money Market
Funds, at the end of the second quarter, was as follows:
Monitor Money Market Fund 35 days
Monitor Ohio Municipal Money Market Fund 50 days
Monitor U.S. Treasury Money Market Fund 46 days
EQUITY FUNDS: MONITOR INCOME EQUITY FUND (JAMES M. BUSKIRK, SENIOR VICE
PRESIDENT AND CHIEF INVESTMENT OFFICER, HUNTINGTON NATIONAL BANK)
The Monitor Income Equity Fund's first half total return of 12.1% for Trust
Shares and 12.0% for Investment Shares exceeded the average total return of its
Lipper Equity peer group, but lagged behind the 17.7% gain of the S&P 500. The
reason for this trailing of that broad index is clear when one considers that
only four stocks (General Electric, Microsoft, Lucent and Walmart) account for
fully 20% of the price appreciation in the index during the second quarter. The
Fund, by comparison, holds only one of those four stocks--General Electric-- a
position initiated in 1990 when GE's dividend yield was much higher. The other
three stocks, because of their very low yields, are not appropriate holdings
for this income-oriented stock fund.
Nevertheless, the Fund's second quarter 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 16% of total fund assets. Chase
Manhattan and First Union were both good performers during this period.
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,
although no assurances can be made.
MONITOR GROWTH FUND (PHILIP H. FARRINGTON, VICE PRESIDENT AND PORTFOLIO
MANAGER; JAMES J. GIBBONEY, JR., VICE PRESIDENT AND PORTFOLIO MANAGER,
HUNTINGTON NATIONAL BANK)
The Monitor Growth Fund's total return for the six month period ended June 30,
1998 was 14.8% (Investment Shares) and 14.9% (Trust Shares) as compared to
17.7% for the S&P 500. During the period, the Fund's turnover rate remained
low, with proceeds from sales used to bolster holdings in the areas of medical
technology, financial services systems and analog semiconductor devices. The
Fund's top five holdings are Home Depot, Schering-Plough, ADP, Abbott Labs and
Merck.
The Monitor Growth Fund's short to medium term investment strategy will not
change significantly from its focus on established growth companies whose
common stocks appear undervalued. We will continue to look for opportunities to
increase the Fund's exposure to more predictable companies within the rapidly
growing technology sector.
INCOME FUNDS: MONITOR FIXED INCOME SECURITIES FUND; MONITOR SHORT/INTERMEDIATE
FIXED INCOME SECURITIES FUND (STEPHEN M. GEIS, VICE PRESIDENT AND PORTFOLIO
MANAGER, HUNTINGTON NATIONAL BANK)
After a slight increase in the early part of the year, interest rates declined
modestly during the second quarter. Under normal market environments, the yield
curve is positively sloped--meaning that the investor may receive more yield by
extending maturities. Today, the yield curve is very flat. That state of
affairs will probably influence our purchase decisions in the Monitor Fixed
Income Securities and Monitor Short/Intermediate Fixed Income Securities Funds.
We have added over a dozen new corporate positions to these two portfolios over
the last quarter. These purchases were funded by sales of Treasury obligations.
The resultant higher corporate exposure allocation both increases the yields of
the Funds and serves to differentiate them from the new Monitor Intermediate
Government Income Fund. For the balance of the year, we will continue to adhere
to a strategy of high quality, a wide degree of diversification by industry and
issuer, and a laddered distribution of maturities.
2
<PAGE>
MONITOR INTERMEDIATE GOVERNMENT INCOME FUND (DUANE J. CARPENTER, ASSISTANT VICE
PRESIDENT AND PORTFOLIO MANAGER, HUNTINGTON NATIONAL BANK)
Lower inflation and concerns over the economic crisis in Asia have caused
taxable interest rates to decline over the last six months, while the Federal
Reserve has held short-term rates steady at 5.50%. With a relatively flat yield
curve, there is not much yield incentive to extend the average maturity of the
portfolio.
The decline in rates caused some of our mortgage-backed issues to prepay more
quickly and increased the likelihood that our callable issues would be called
prior to maturity. This activity has shortened the average maturity of the
Fund. Our current strategy is focused on maintaining our average maturity near
the short end of our stated target range of three to ten years. This will allow
the Fund to increase in value should rates continue to decline, but will limit
the negative impact on the Fund's net asset value should rates rebound in the
second half of the year.
MONITOR MORTGAGE SECURITIES FUND (DUANE J. CARPENTER, ASSISTANT VICE PRESIDENT
AND PORTFOLIO MANAGER, HUNTINGTON NATIONAL BANK)
The Monitor Mortgage Securities Fund has experienced a limited exposure to
prepayment activity by investing in mortgage pass-through securities with
average coupons of 6.5% to 7.0% rather than investing in higher coupon pass-
throughs, which are more likely to be refinanced. This strategy has reduced the
volatility of the Fund's net asset value, while continuing to provide a high
level of current income relative to other taxable fixed income investments. If
interest rates continue to decline over the remainder of the year, we will be
looking to add securities that provide additional protection from accelerating
prepayments in order to maintain the average duration near three years.
MONITOR OHIO TAX-FREE FUND (WILLIAM G. DOUGHTY, VICE PRESIDENT AND PORTFOLIO
MANAGER, HUNTINGTON NATIONAL BANK)
The municipal market has seen more eventful times than the past few months.
Attention has focused on the volatility of broader markets, and municipals have
found little reason to follow in full stride. In the intermediate sector, AAA
insured municipal debt continues to yield 85% of comparable Treasury yields,
well above its 77.5% level a year ago.
We will continue to purchase good quality Ohio municipal bonds, trying to
purchase uninsured issues in order to increase the yield for shareholders in
the thirteen to fifteen year maturity ranges. The goal is to lengthen the
average life of the Fund beyond 6 years.
MONITOR MICHIGAN TAX-FREE FUND (DUANE J. CARPENTER, ASSISTANT VICE PRESIDENT
AND PORTFOLIO MANAGER, HUNTINGTON NATIONAL BANK)
The investment objective of The Monitor Michigan Tax-Free Fund is to provide a
high level of current income, exempt from both Federal and Michigan personal
income taxes. Our strategy is to maintain the average maturity of the Fund at
between five and seven years. This positioning will allow us to capture a large
portion of the yields available on longer-term bonds, while reducing the
volatility of the Fund's net asset value.
In the second half of 1998, we will continue to focus new purchase activity in
the ten to fifteen year sectors, where yields are currently 80% to 90% of the
U.S. Treasury market. These levels will represent excellent value relative to
historical comparisons.
3
<PAGE>
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Portfolio of Investments
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------------------------------------
THE MONITOR MONEY MARKET FUND June 30, 1998 (unaudited)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 93.4%
- -------------------------------------------------------------------------------
AGRICULTURE - 3.0%
$10,000 Archer-Daniels-Midland Co., 5.490%, 08/12/98 $ 9,936
13,000 Archer-Daniels-Midland Co., 5.500%, 09/03/98 12,873
- -------------------------------------------------------------------------------
22,809
- -------------------------------------------------------------------------------
AUTOMOTIVE - 2.6%
10,000 Daimler Benz N.A., 5.520%, 07/21/98 9,969
10,000 Daimler Benz N.A., 5.490%, 09/09/98 9,893
- -------------------------------------------------------------------------------
19,862
- -------------------------------------------------------------------------------
BANKING - 4.5%
10,000 National City Credit Corp., 5.480%, 07/22/98 9,968
10,000 National City Credit Corp., 5.470%, 09/10/98 9,892
15,000 Toronto Dominion Holdings, USA, 5.480%,
09/09/98 14,840
- -------------------------------------------------------------------------------
34,700
- -------------------------------------------------------------------------------
BANKING & FINANCE - 2.6%
10,000 Goldman, Sachs & Co., 5.510%, 08/06/98 9,945
10,000 Goldman, Sachs & Co., 5.480%, 09/08/98 9,895
- -------------------------------------------------------------------------------
19,840
- -------------------------------------------------------------------------------
CHEMICALS - 6.3%
5,000 Air Products & Chemicals, Inc., 5.510%, 07/31/98 4,977
8,670 Air Products & Chemicals, Inc., 5.480%, 09/18/98 8,566
10,000 du Pont (E.I.) de Nemours & Co., 5.480%, 08/04/98 9,948
10,000 du Pont (E.I.) de Nemours & Co., 5.460%, 09/24/98 9,871
5,000 Monsanto Co., 5.480%, 08/14/98 4,967
10,000 Monsanto Co., 5.500%, 08/25/98 9,916
- -------------------------------------------------------------------------------
48,245
- -------------------------------------------------------------------------------
COMMUNICATIONS - 2.6%
10,000 Motorola, Inc., 5.460%, 07/10/98 9,986
10,000 SBC Communications, Inc., 5.470%, 08/06/98 (f) 9,945
- -------------------------------------------------------------------------------
19,931
- -------------------------------------------------------------------------------
CONSUMER PRODUCTS - 2.6%
10,000 Fortune Brands, Inc., 5.510%, 07/08/98 9,989
10,000 Fortune Brands, Inc., 5.500%, 07/17/98 9,976
- -------------------------------------------------------------------------------
19,965
- -------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS - 2.8%
10,000 Emerson Electric Co., 5.470%, 07/31/98 9,954
12,000 Minnesota Mining & Manufacturing, 5.450%, 07/14/98 11,976
- -------------------------------------------------------------------------------
21,930
- -------------------------------------------------------------------------------
ELECTRONICS - 5.2%
10,000 General Electric Co., 5.450%, 09/14/98 9,886
10,000 General Electric Co., 5.490%, 09/18/98 9,880
10,000 Siemens Capital Corp., 5.430%, 07/15/98 9,979
10,000 Siemens Capital Corp., 5.430%, 09/16/98 9,884
- -------------------------------------------------------------------------------
39,629
- -------------------------------------------------------------------------------
ENERGY - 2.2%
5,200 Duke Energy Corp., 5.480%, 07/22/98 5,183
11,800 Duke Energy Corp., 5.470%, 07/24/98 11,759
- -------------------------------------------------------------------------------
16,942
- -------------------------------------------------------------------------------
ENTERTAINMENT - 2.6%
10,000 The Walt Disney Co., 5.410%, 07/08/98 9,989
10,000 The Walt Disney Co., 5.440%, 08/13/98 9,935
- -------------------------------------------------------------------------------
19,924
- -------------------------------------------------------------------------------
FINANCE COMMERCIAL - 1.9%
10,000 IBM Credit Corp., 5.410%, 07/07/98 9,991
5,000 Merrill Lynch & Co., 5.510%, 08/11/98 4,969
- -------------------------------------------------------------------------------
14,960
- -------------------------------------------------------------------------------
COMMERCIAL PAPER (CONTINUED)
- -------------------------------------------------------------------------------
FINANCE RETAIL - 2.6%
10,000 Pitney Bowes Credit Corp., 5.465%, 07/01/98 10,000
10,000 Pitney Bowes Credit Corp., 5.445%, 07/13/98 9,982
- -------------------------------------------------------------------------------
19,982
- -------------------------------------------------------------------------------
FINANCIAL - 6.5%
10,000 American Express Corp., 6.023%, 07/02/98 10,000
15,000 Dresdner U.S. Finance, Inc., 5.450%, 07/06/98 14,989
10,000 Prudential Funding Corp., 5.732%, 07/01/98 10,000
5,000 Xerox Credit Corp., 5.440%, 07/10/98 4,993
10,000 Xerox Credit Corp., 5.430%, 09/04/98 9,902
- -------------------------------------------------------------------------------
49,884
- -------------------------------------------------------------------------------
FOOD & BEVERAGE - 2.6%
10,000 Coca-Cola, Inc., 5.480%, 09/04/98 9,901
10,000 Coca-Cola, Inc., 5.470%, 09/28/98 9,865
- -------------------------------------------------------------------------------
19,766
- -------------------------------------------------------------------------------
FOOD PRODUCTS - 8.1%
10,000 Anheuser Busch Co., 5.450%, 07/16/98 9,977
15,000 Campbell Soup Co., 5.470%, 07/09/98 14,982
7,695 Heinz H.J. Co., 5.520%, 07/02/98 7,694
10,000 Hershey Foods, Inc., 5.470%, 07/29/98 9,957
10,000 Unilever Corp., 5.470%, 07/29/98 (f) 9,957
10,000 Unilever Corp., 5.460%, 08/20/98 (f) 9,924
- -------------------------------------------------------------------------------
62,491
- -------------------------------------------------------------------------------
FUNDING CORP - 1.7%
8,000 New Center Asset Trust, 5.520%, 08/03/98 7,960
5,000 New Center Asset Trust, 5.480%, 09/11/98 4,945
- -------------------------------------------------------------------------------
12,905
- -------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS & HOUSEWARES - 1.9%
15,000 Procter & Gamble Co., 5.470%, 09/02/98 14,856
- -------------------------------------------------------------------------------
INSURANCE - 6.1%
10,000 AI Credit Corp., 5.430%, 07/14/98 9,980
10,000 AI Credit Corp., 5.470%, 08/10/98 9,939
10,000 Met Life Funding Corp., 5.530%, 07/27/98 9,960
10,000 USAA Capital Corp., 5.500%, 08/18/98 9,927
7,000 USAA Capital Corp., 5.500%, 09/25/98 6,908
- -------------------------------------------------------------------------------
46,714
- -------------------------------------------------------------------------------
METALS & MINING - 3.2%
15,000 Aluminum Company America, 5.500%, 08/31/98 14,860
10,000 Aluminum Company America, 5.490%, 09/17/98 9,881
- -------------------------------------------------------------------------------
24,741
- -------------------------------------------------------------------------------
OIL & GAS - 5.4%
7,000 Amoco Co., 5.430%, 07/07/98 6,994
15,000 Amoco Co., 5.450%, 08/05/98 14,921
10,000 Shell Oil Co., 5.460%, 08/14/98 9,933
10,000 Shell Oil Co., 5.470%, 08/28/98 9,912
- -------------------------------------------------------------------------------
41,760
- -------------------------------------------------------------------------------
PHARMACEUTICALS - 1.9%
15,000 SmithKline Beecham, 5.470%, 08/03/98 14,925
- -------------------------------------------------------------------------------
PRINTING & PUBLISHING - 3.1%
8,700 McGraw-Hill Companies, Inc., 5.500%, 07/23/98 8,671
15,000 McGraw-Hill Companies, Inc., 5.550%, 08/28/98 14,866
- -------------------------------------------------------------------------------
23,537
- -------------------------------------------------------------------------------
RETAIL - 3.9%
10,000 May Department Stores, 5.490%, 07/21/98 9,970
10,000 May Department Stores, 5.480%, 07/24/98 9,965
10,000 Toys R Us, Inc., 5.490%, 08/04/98 9,948
- -------------------------------------------------------------------------------
29,883
- -------------------------------------------------------------------------------
SOVEREIGN GOVERNMENTS - 2.3%
10,000 Canadian Wheat Board, 5.430%, 07/10/98 9,986
8,100 Canadian Wheat Board, 5.460%, 07/15/98 8,083
- -------------------------------------------------------------------------------
18,069
- -------------------------------------------------------------------------------
4
<PAGE>
------------------------------------
THE MONITOR MONEY MARKET FUND (Continued)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
COMMERCIAL PAPER (CONTINUED)
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - 5.2%
$10,000 BellSouth
Telecommunications, Inc.,
5.470%, 07/09/98 $ 9,988
10,000 BellSouth
Telecommunications,
Inc.,
5.480%, 07/21/98 9,970
10,000 Lucent Technologies,
5.470%, 07/28/98 9,959
10,000 Lucent Technologies,
5.480%, 08/07/98 9,944
- -------------------------------------------------------------------------------
39,861
- -------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 718,111
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 7.1%
40,000 Morgan Stanley & Co., Inc., 5.730%, dated
06/30/98, due 07/01/98, repurchase price
$40,006,367 (collateralized by FHLB
obligations, total par value $40,230,000,
6.250%, 03/19/02, total market value
$40,929,136) 40,000
14,382 Morgan Stanley & Co., Inc., 5.700%, dated
06/30/98, due 07/01/98, repurchase
price $14,384,077 (collateralized by
U.S. Treasury obligations, total
par value $11,135,000, 8.125%,
08/15/19, total market value
$14,698,065) 14,382
- -------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 54,382
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) $772,493
- -------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND June 30, 1998
(unaudited)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
OHIO - 100.1%
- -------------------------------------------------------------------------------
$1,125 Allen County, BANs, 4.050%, 04/13/99 $1,128
- -------------------------------------------------------------------------------
1,120 Allen County, BANs, 4.130%, 11/23/98 1,121
- -------------------------------------------------------------------------------
1,000 American Municipal Power, Inc., BANs, 4.100%, 12/04/98 1,000
- -------------------------------------------------------------------------------
1,490 Ashland County, IDR, Weekly VRDNs, Landover Properties,
Banc One LOC, 3.550%, 11/01/04 1,490
- -------------------------------------------------------------------------------
Ashland, Sanitary Sewer System Improvement, GO, 3.960%,
03/18/99 1,302
- -------------------------------------------------------------------------------
1,500 Berea City, LTD, BANs, 4.000%, 10/15/98 1,501
- -------------------------------------------------------------------------------
1,300 Brunswick, BANs, 4.100%, 04/01/99 1,303
- -------------------------------------------------------------------------------
2,000 Butler County, HRB, Weekly VRDNs, Middletown Regional
Hospital, Star Bank LOC, 3.600%, 11/01/17 2,000
- -------------------------------------------------------------------------------
1,500 Butler County, LTD, BANs, 4.000%, 03/19/99 1,504
- -------------------------------------------------------------------------------
1,500 Butler County, LTD, BANs, 4.250%, 10/22/98 1,502
- -------------------------------------------------------------------------------
1,930 Centerville, Weekly VRDNs, Betheny Village, PNC Bank LOC,
3.600%, 11/01/13 1,930
- -------------------------------------------------------------------------------
4,500 Cincinnati Hamilton, Daily VRDNs, Kenwood Project,
Kredietbank N.V. LOC, 3.700%, 09/01/25 4,500
- -------------------------------------------------------------------------------
1,300 Cincinnati Hamilton, Student Loan Funding Corp., Weekly
VRDNs, Bank of America LOC, 3.500%, 12/29/98 1,300
- -------------------------------------------------------------------------------
1,000 Cleveland Heights, BANs, 4.250%, 08/27/98 1,001
- -------------------------------------------------------------------------------
4,700 Columbus, Electric System Revenue, Monthly VRDNs, Union
Bank of Switzerland LOC, 3.750%, 09/01/09 4,700
- -------------------------------------------------------------------------------
5,800 Columbus, SSRB, Weekly VRDNs, Series 1994, 3.500%, 06/01/11 5,800
- -------------------------------------------------------------------------------
5,000 Columbus, Weekly VRDNs, Westdeutsche Landersbank LOC,
3.400%, 06/01/16 5,000
- -------------------------------------------------------------------------------
3,800 Columbus, Weekly VRDNs, GO, Westdeutsche Landersbank LOC,
3.400%, 12/01/17 3,800
- -------------------------------------------------------------------------------
585 Cuyahoga County, Cleveland Neighborhood, RB, Key Bank LOC,
3.950%, 12/01/98 (e) 585
- -------------------------------------------------------------------------------
3,800 Cuyahoga County, Daily VRDNs, Cleveland Orchestra, Bank of
America LOC, 3.700%, 04/04/28 3,800
- -------------------------------------------------------------------------------
2,000 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic,
Series 1996A, Morgan Guaranty LOC, 3.550%, 01/01/26 2,000
- -------------------------------------------------------------------------------
2,000 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic,
Series B, 3.500%, 01/01/26 2,000
- -------------------------------------------------------------------------------
2,000 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic,
Series B, 3.550%, 01/01/26 2,000
- -------------------------------------------------------------------------------
1,400 Cuyahoga County, IDA, Weekly VRDNs, Allen Group Inc.,
Dresdner Bank AG, NY LOC, 3.350%, 12/01/15 1,400
- -------------------------------------------------------------------------------
995 Cuyahoga County, IDR, Fogg Centax 11 Project, Equitable
Federal LOC, 4.000%, 07/01/99 (e) 995
- -------------------------------------------------------------------------------
3,350 Cuyahoga County, IDR, Weekly VRDNs, Edgecomb Metals, Banque
Nationale De Paris LOC, 3.500%, 09/01/09 3,350
- -------------------------------------------------------------------------------
1,500 Dayton, BANs, 3.950%, 09/15/98 1,500
- -------------------------------------------------------------------------------
800 Delaware County, IDR, Monthly VRDNs, Radiation Sterilizers,
Wells Fargo LOC, 4.250%, 12/01/04 800
- -------------------------------------------------------------------------------
1,875 Dover, BANs, 4.150%, 09/10/98 1,876
- -------------------------------------------------------------------------------
1,600 Elyria, BANs, 4.050%, 06/03/99 1,604
- -------------------------------------------------------------------------------
1,000 Erie County, BANs, 4.250%, 06/01/99 1,004
- -------------------------------------------------------------------------------
1,242 Euclid, BANs, 3.990%, 06/17/99 1,244
- -------------------------------------------------------------------------------
1,090 Euclid, BANs, 4.120%, 07/31/98 1,090
- -------------------------------------------------------------------------------
1,600 Evendale, IDR, Weekly VRDNs, Shaver Real Estate, ABN AMRO
Bank LOC, 3.600%, 09/01/15 1,600
- -------------------------------------------------------------------------------
1,100 Fairborn, BANs, 3.750%, 03/23/99 1,101
- -------------------------------------------------------------------------------
5,900 Franklin County, HRB, Weekly VRDNs, Series 1996, U.S.
Health, Morgan Guaranty Trust LOC, 3.550%, 12/01/21 5,900
- -------------------------------------------------------------------------------
1,100 Franklin County, HRB, Weekly VRDNs, Childrens Hospital,
Banc One SPA, 3.700%, 12/01/14 1,100
- -------------------------------------------------------------------------------
2,500 Franklin County, HRB, Daily VRDNs, Franciscan Sisters,
Chase Manhattan Bank LOC, 3.900%, 07/01/15 2,500
- -------------------------------------------------------------------------------
2,500 Franklin County, HRB, Weekly VRDNs, Holy Cross Health,
Morgan Guaranty Trust LOC, 3.450%, 06/01/16 2,500
- -------------------------------------------------------------------------------
5
<PAGE>
----------------
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND (Continued)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
OHIO (CONTINUED)
- -------------------------------------------------------------------------------
$ 750 Franklin County, IDR, Weekly VRDNs, Columbus College Art &
Design, Bank One LOC, 3.600%, 10/01/11 $ 750
- -------------------------------------------------------------------------------
1,500 Franklin County, Weekly VRDNs, Dominican Sisters, Fifth
Third Bank LOC, 3.600%, 12/01/16 1,500
- -------------------------------------------------------------------------------
1,100 Hamilton County, Monthly VRDNs, Automated Data Processing
Co., 3.700%, 10/15/12 1,100
- -------------------------------------------------------------------------------
2,250 Hamilton County, Health Care System, Weekly VRDNs, West
Park, Fifth Third Bank LOC, 3.500%, 07/01/17 2,250
- -------------------------------------------------------------------------------
2,000 Hamilton County, HRB, Weekly VRDNs, Childrens Hospital,
Series A, PNC Bank LOC, 3.600%, 05/15/17 2,000
- -------------------------------------------------------------------------------
4,200 Hamilton County, HRB, Weekly VRDNs, Health Alliance, Series
A, MBIA, 3.500%, 01/01/18 4,200
- -------------------------------------------------------------------------------
1,900 Hamilton County, HRB, Weekly VRDNs, Health Alliance, Series
B, MBIA, 3.550%, 01/01/18 1,900
- -------------------------------------------------------------------------------
900 Hamilton County, HRB, Weekly VRDNs, Health Alliance, Series
E, MBIA, 3.500%, 01/01/18 900
- -------------------------------------------------------------------------------
1,000 Hamilton County, Weekly VRDNs, Cincinnati Arts Association,
Fifth Third Bank LOC, 3.650%, 05/01/13 1,000
- -------------------------------------------------------------------------------
2,000 Highland Heights, BANs, 4.050%, 11/19/98 2,001
- -------------------------------------------------------------------------------
1,000 Hilliard, BANs, 4.150%, 09/10/98 1,001
- -------------------------------------------------------------------------------
1,340 Lakota, LSD, BANs, 4.000%, 06/10/99 1,343
- -------------------------------------------------------------------------------
1,000 Lebanon, BANs, 4.070%, 05/27/99 1,002
- -------------------------------------------------------------------------------
1,745 Lorain County, Weekly VRDNs, Elyria Methodist Project, Key
Bank LOC, 3.600%, 06/01/12 1,745
- -------------------------------------------------------------------------------
1,820 Lorain County, Weekly VRDNs, United Methodist Project, Key
Bank LOC, 3.600%, 06/01/22 1,820
- -------------------------------------------------------------------------------
1,000 Loveland, GO, BANs, 4.110%, 09/10/98 1,000
- -------------------------------------------------------------------------------
3,000 Lucas County, Weekly VRDNs, RB, Toledo Zoological Society,
Key Bank LOC, 3.650%, 10/01/05 3,000
- -------------------------------------------------------------------------------
1,000 Lyndhurst, BANs, 3.869%, 03/17/99 1,002
- -------------------------------------------------------------------------------
920 Mahoning County, Daily VRDNs, Series 1992, Copland Oaks,
Bank One LOC, 3.600%, 04/01/17 920
- -------------------------------------------------------------------------------
2,000 Mahoning County, Weekly VRDNS, HRB, Forum Health Obligation
Group B, MBIA, 3.550%, 12/01/27 2,000
- -------------------------------------------------------------------------------
900 Marion County, Weekly VRDNs, Bank One LOC, 3.600%, 08/01/20 900
- -------------------------------------------------------------------------------
3,000 Mason County, EDR, Weekly VRDNs, Cedar Village Project,
3.530%, 12/01/07 3,000
- -------------------------------------------------------------------------------
1,500 Mason, CSD, BANs, Series A, 4.020%, 02/18/99 1,504
- -------------------------------------------------------------------------------
1,000 Medina, BANs, 3.940%, 06/17/99 1,002
- -------------------------------------------------------------------------------
1,000 Middleburg Heights, BANs, 3.900%, 10/27/98 1,001
- -------------------------------------------------------------------------------
2,000 Middleburg Heights, Weekly VRDNs, Southwest General Health,
Key Bank LOC, 3.550%, 08/15/22 2,000
- -------------------------------------------------------------------------------
1,300 Montgomery County, Daily VRDNs, Series A, Miami Valley
Hospital, National City Bank SPA, 4.000%, 11/15/22 1,300
- -------------------------------------------------------------------------------
1,000 Morrow County, Weekly VRDNs, Field Container, American
National Bank LOC, 3.550%, 12/01/99 1,000
- -------------------------------------------------------------------------------
1,700 Ohio School Districts Cash Flow Borrowing Program, BANs,
4.120%, 12/31/98 1,708
- -------------------------------------------------------------------------------
1,000 Ohio School Districts Cash Flow Borrowing Program, BANs,
4.050%, 06/30/99 1,004
- -------------------------------------------------------------------------------
2,500 Ohio State Air Quality Development Authority, Cleveland
Electric, RB, 3.400%, 08/10/98 (e) 2,500
- -------------------------------------------------------------------------------
2,900 Ohio State Air Quality Development Authority, Daily
VRDNs, Mead Corp., Deutsche Bank LOC, 3.900%, 10/01/01 2,900
- -------------------------------------------------------------------------------
700 Ohio State Air Quality Development Authority, Daily
VRDNs, Series B, 3.800%, 12/01/15 700
- -------------------------------------------------------------------------------
2,000 Ohio State Air Quality Development Authority, RB,
Cleveland Electric, FGIC, 3.600%, 09/24/98 (e) 2,000
- -------------------------------------------------------------------------------
2,000 Ohio State Building Authority Facilities, Administration
Building Fund, Series 1998A, RB, 4.000%, 10/01/98 2,002
- -------------------------------------------------------------------------------
3,200 Ohio State Environmental Improvement, Weekly VRDNs, USX
Corp., Sanwa Bank LOC, 3.400%, 05/01/11 3,200
- -------------------------------------------------------------------------------
3,200 Ohio State, HEF, Weekly VRDNs, Oberlin College, Morgan
Guaranty Trust LOC, 3.400%, 10/01/15 3,200
- -------------------------------------------------------------------------------
4,000 Ohio State, HEF, Weekly VRDNs, 3.600%, 09/01/17 4,000
- -------------------------------------------------------------------------------
1,000 Ohio State, HEF, Weekly VRDNs, Mt. Vernon Nazarene
College, National City Bank LOC, 3.600%, 09/01/09 1,000
- -------------------------------------------------------------------------------
4,100 Ohio State Water Development Authority, Daily VRDNs, Mead
Corp., Swiss Bank LOC, 3.900%, 11/01/15 4,100
- -------------------------------------------------------------------------------
4,000 Ohio State Water Development Authority, Weekly VRDNs,
Cleveland Electric, First Chicago LOC, 3.500%, 07/01/20 4,000
- -------------------------------------------------------------------------------
1,000 Ohio State Water Development, RB, Series A,
Cleveland Electric, FGIC, 3.650%, 08/28/98 (e) 1,000
- -------------------------------------------------------------------------------
3,000 Sharonville, IDR, Weekly VRDNs, Edgecomb Metals, Banque
Nationale De Paris LOC, 3.500%, 11/01/09 3,000
- -------------------------------------------------------------------------------
1,400 Solon, BANs, 4.000%, 11/24/98 1,402
- -------------------------------------------------------------------------------
1,340 Stowe County, BANs, 4.000%, 12/17/98 1,341
- -------------------------------------------------------------------------------
600 Strongsville, BANs, 4.020%, 11/18/98 600
- -------------------------------------------------------------------------------
1,000 Summit County, BANs, 4.500%, 06/03/99 1,007
- -------------------------------------------------------------------------------
2,100 Summit County, IDR, Monthly VRDNs, Petrarca Cedarwood,
Firemans Newark Insured, 4.850%, 04/01/00 2,100
- -------------------------------------------------------------------------------
1,200 Sylvania, LSD, BANs, 4.390%, 12/16/98 1,202
- -------------------------------------------------------------------------------
2,350 The Ohio State University, Weekly VRDNs, General
Receipts, RB, 3.400%, 12/01/27 2,350
- -------------------------------------------------------------------------------
4,440 The Ohio State University, Weekly VRDNs, Series 1986B,
National Westminster Bank PLC LOC, 3.450%, 12/01/06 4,440
- -------------------------------------------------------------------------------
1,825 The Ohio State University, Weekly VRDNs, Series 1985B,
National Westminster Bank PLC LOC, 3.450%, 12/01/01 1,825
- -------------------------------------------------------------------------------
2,000 Toledo Lucas, RB, 3.700%, 10/06/98 (e) 2,000
- -------------------------------------------------------------------------------
1,750 University of Cincinnati, General Receipts, BANs, 3.800%,
03/01/99 1,753
- -------------------------------------------------------------------------------
925 Vermillion, BANs, 4.300%, 10/29/98 926
- -------------------------------------------------------------------------------
1,000 Warren County, IDR, Weekly VRDNs, Pioneer Industrial,
Bank of Tokyo-Mitsubishi Bank LOC, 3.900%, 12/01/05 1,000
- -------------------------------------------------------------------------------
700 Wooster, IDR, Weekly VRDNs, Allen Group, National Bank of
Detroit LOC, 3.650%, 12/01/10 700
- -------------------------------------------------------------------------------
TOTAL OHIO (AT AMORTIZED COST) 184,932
- -------------------------------------------------------------------------------
OTHER - 0.1%
- -------------------------------------------------------------------------------
219 Nuveen Tax-Exempt Money Market Fund, Inc., 3.350% 219
- -------------------------------------------------------------------------------
TOTAL OTHER 219
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST) 185,151
- -------------------------------------------------------------------------------
See Notes to Portfolios of Investments.
6
<PAGE>
------------------
THE MONITOR U.S. TREASURY MONEY MARKET FUND June 30, 1998
(unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
(A) U.S. TREASURY BILLS - 44.5%
- --------------------------------------------------------------------------------
$20,000 5.060%, 07/23/98 $19,938
- --------------------------------------------------------------------------------
30,000 5.055%, 08/20/98 29,789
- --------------------------------------------------------------------------------
10,000 5.070%, 09/10/98 9,900
- --------------------------------------------------------------------------------
15,000 5.050%, 09/17/98 14,836
- --------------------------------------------------------------------------------
30,000 5.080%, 09/17/98 29,670
- --------------------------------------------------------------------------------
10,000 5.040%, 10/08/98 9,861
- --------------------------------------------------------------------------------
10,000 5.060%, 10/15/98 9,851
- --------------------------------------------------------------------------------
15,000 5.070%, 10/15/98 14,776
- --------------------------------------------------------------------------------
35,000 5.050%, 11/05/98 34,377
- --------------------------------------------------------------------------------
35,000 5.160%, 11/12/98 34,329
- --------------------------------------------------------------------------------
30,000 5.110%, 11/19/98 29,402
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY BILLS (AT
AMORTIZED COST) 236,729
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 52.1%
- --------------------------------------------------------------------------------
25,000 Bankers Trust, 5.400%, dated 06/25/98, due
07/02/98, repurchase price $25,026,250
(collateralized by U.S. Treasury
obligations, total par value $24,567,000,
6.375%, 09/30/01, total market value
$25,539,863) 25,000
30,000 Dean Witter Reynolds, Inc., 5.400%, dated
06/25/98, due 07/02/98, repurchase
price $30,031,500 (collateralized by
U.S. Treasury obligations, total
par value $29,814,000, 6.000%,
08/15/99, total market value
$30,625,520) 30,000
45,000 First Boston Corp., 5.350%, dated
06/24/98, due 07/01/98, repurchase
price $45,046,873 (collateralized by
U.S. Treasury obligations, total
par value $38,919,000, 7.250%,
05/15/16, total market value
$45,888,420) 45,000
25,000 First Chicago, 5.440%, dated
06/29/98, due 07/06/98, repurchase
price $25,026,444 (collateralized by
U.S. Treasury obligations, total
par value $18,315,000, 8.875%,
08/15/17, total market value
$25,563,228) 25,000
50,000 Goldman Sachs Co., 5.560%, dated
06/29/98, due 07/06/98, repurchase
price $50,054,056 (collateralized by
U.S. Treasury obligations, total
par value $36,215,000, 9.125%,
05/15/18, total market value
$51,097,102) $50,000
25,000 Lehman Brothers, Inc., 5.400%, dated
06/30/98, due 07/07/98, repurchase
price $25,026,250 (collateralized by
U.S. Treasury obligations, total
par value $18,160,000, 8.750%,
08/15/20, total market value
$25,551,233) 25,000
30,000 Merrill Lynch & Co., 5.400%, dated
06/30/98, due 07/07/98, repurchase
price $30,031,500 (collateralized by
U.S. Treasury obligations, total
par value $29,530,000, 7.500%,
10/31/99, total market value
$30,626,141) 30,000
7,029 Morgan Stanley & Co., Inc., 5.700%, dated
06/30/98, due 07/01/98, repurchase
price $7,029,913 (collateralized by
U.S. Treasury obligations, total
par value $4,985,000, 12.750%,
11/15/10, total market value
$7,176,842) 7,029
15,000 Prudential Funding Corp., 5.500%, dated
06/30/98, due 07/01/98, repurchase
price $15,002,292 (collateralized by
U.S. Treasury obligations, total par value
$13,990,000, 7.875%, 08/15/01, total
market value $15,314,582) 15,000
25,000 Smith Barney, Inc., 5.460%, dated
06/30/98, due 07/07/98, repurchase
price $25,026,542 (collateralized by
U.S. Treasury obligations, total
par value $18,160,000, 9.125%,
05/15/18, total market value
$25,622,625) 25,000
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 277,029
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES - 3.7%
20,000 5.250%, 07/31/98 20,001
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES (AT AMORTIZED COST) 20,001
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (AT AMORTIZED COST $533,759) $533,759
- -------------------------------------------
See Notes To Portfolios of Investments
---------------------------------------------
THE MONITOR GROWTH FUND June 30, 1998 (unaudited)
- -------------------------------------------------------------------------------
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------------------
COMMON STOCK - 94.6%
- -------------------------------------------------------------------------------
ADVERTISING - 1.3%
75 Interpublic Group of Companies, Inc. $4,552
- -------------------------------------------------------------------------------
BUSINESS EQUIPMENT & SERVICES - 3.3%
38 Cintas Corp. 1,938
150 Cognizant Corp. 9,450
- -------------------------------------------------------------------------------
11,388
- -------------------------------------------------------------------------------
CAPITAL GOODS - 2.2%
110 Boeing Co. 4,902
33 Caterpillar, Inc. 1,761
64 Worthington Industries, Inc. 964
- -------------------------------------------------------------------------------
7,627
- -------------------------------------------------------------------------------
CHEMICALS - 3.7%
250 Hanna (M.A.) Co. 4,578
17 Potash Corp. 1,254
200 Sigma Aldrich Corp. 7,025
- -------------------------------------------------------------------------------
12,857
- -------------------------------------------------------------------------------
CONSUMER NON-DURABLES - 5.6%
100 Colgate-Palmolive Co. 8,800
100 Fortune Brands, Inc. 3,844
86 Gillette Co. 4,875
19 Procter & Gamble Co. 1,730
- -------------------------------------------------------------------------------
19,249
- -------------------------------------------------------------------------------
CONSUMER PRODUCTS - 9.7%
170 American Greetings Corp. 8,659
28 Bestfoods 1,626
72 International Flavors & Fragrances, Inc. 3,116
30 Lancaster Colony Corp. 1,136
90 Media General, Inc., Class A. 4,402
115 Newell Co. 5,728
22 Sara Lee Corp. 1,203
50 Tiffany & Co. 2,400
50 Wrigley Wm. Jr. Co. 4,900
- -------------------------------------------------------------------------------
33,170
- -------------------------------------------------------------------------------
7
<PAGE>
--------------------------------------
THE MONITOR GROWTH FUND (Continued)
- ------------------------------------------------------------------------
SHARES VALUE
(000) (000)
- ------------------------------------------------------------------------
COMMON STOCK (CONTINUED)
- ------------------------------------------------------------------------
CONTAINERS & PACKAGING - 1.6%
100 Avery Dennison Corp. $5,375
- ------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 5.8%
30 AMP, Inc. 1,014
150 Analog Devices, Inc. 3,684
71 Emerson Electric Co. 4,270
88 General Electric Co. 8,053
67 Hubbell, Inc. 2,800
- ------------------------------------------------------------------------
19,821
- ------------------------------------------------------------------------
ENERGY - 7.0%
140 Anadarko Petroleum Corp. 9,406
20 Exxon Corp. 1,426
28 Mobil Corp. 2,107
41 Royal Dutch Petroleum Co., ADR 2,247
131 Schlumberger LTD. 8,983
- ------------------------------------------------------------------------
24,169
- ------------------------------------------------------------------------
ENTERTAINMENT - 3.6%
52 Carnival Corp. 2,060
211 Mattel, Inc. 8,917
12 The Walt Disney Co. 1,261
- ------------------------------------------------------------------------
12,238
- ------------------------------------------------------------------------
FINANCIAL - 4.2%
70 American Express Co. 7,980
48 Banc One Corp. 2,671
24 Fannie Mae 1,458
60 Norwest Corp. 2,242
- ------------------------------------------------------------------------
14,351
- ------------------------------------------------------------------------
FOOD & BEVERAGE - 2.6%
217 PepsiCo, Inc. 8,938
- ------------------------------------------------------------------------
FOOD DISTRIBUTORS - 1.8%
247 Sysco Corp. 6,319
- ------------------------------------------------------------------------
HEALTH CARE - 0.7%
37 Medtronic Inc. 2,333
- ------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 2.8%
46 Illinois Tool Works, Inc. 3,068
50 Nordson Corp. 2,350
257 RPM, Inc. 4,377
- ------------------------------------------------------------------------
9,795
- ------------------------------------------------------------------------
INSURANCE - 2.4%
45 American International Group 6,606
7 General RE Corp. 1,775
- ------------------------------------------------------------------------
8,381
- ------------------------------------------------------------------------
MEDICAL SUPPLIES - 2.1%
100 Boston Scientific Corp. $7,163
- ------------------------------------------------------------------------
PHARMACEUTICALS - 15.0%
266 Abbott Laboratories 10,856
38 American Home Products Corp. 1,967
75 Johnson & Johnson 5,531
77 Merck & Co. 10,366
75 Pfizer, Inc. 8,206
31 Pharmacia & Upjohn, Inc. 1,430
145 Schering-Plough Corp. 13,286
- ------------------------------------------------------------------------
51,642
- ------------------------------------------------------------------------
PRODUCER MANUFACTURING - 0.2%
22 Corning, Inc. 765
- ------------------------------------------------------------------------
RETAIL - 8.3%
170 Home Depot 14,121
98 Kohl's Corp.* 5,084
222 Walgreen 9,163
- ------------------------------------------------------------------------
28,368
- ------------------------------------------------------------------------
TECHNOLOGY - 9.3%
170 Automatic Data Processing, Inc. 12,389
32 Computer Sciences Corp.* 2,065
250 Diebold, Inc. 7,219
40 Hewlett-Packard Co. 2,395
26 Microsoft Corp.* 2,818
59 Oracle Corp.* 1,443
41 Solectron Corp.* 1,725
70 Zero Corp. 2,004
- ------------------------------------------------------------------------
32,058
- ------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.4%
33 AirTouch Communications, Inc.* 1,928
36 Lucent Technologies, Inc. 3,027
- ------------------------------------------------------------------------
4,955
- ------------------------------------------------------------------------
TOTAL COMMON STOCK (IDENTIFIED COST $169,377) 325,514
- ------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 5.4%
5,000 Chevron Corp., 5.492%, 07/02/98 5,000
5,000 Ford Motor Credit Corp., 5.582%, 07/09/98 5,000
8,487 Prudential Funding Corp., 5.851%, 07/01/98 8,487
- ------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 18,487
- ------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $187,864) $344,001
- ------------------------------------------------------------------------
See Notes To Portfolios of Investments.
------------------------------------
THE MONITOR INCOME EQUITY FUND June 30, 1998 (unaudited)
- ------------------------------------------------------------------------
SHARES VALUE
(000) (000)
- ------------------------------------------------------------------------
COMMON STOCK - 82.1%
- ------------------------------------------------------------------------
BANKING & FINANCE - 18.2%
31 Associates First Capital-A $2,418
130 Chase Manhattan Corp. 9,815
194 First Union Corp. 11,324
100 Fleet Financial Group, Inc. 8,350
100 National City Corp. 7,100
110 Ohio Casualty Corp. 4,868
- ------------------------------------------------------------------------
43,875
- ------------------------------------------------------------------------
BASIC INDUSTRY - 5.1%
80 du Pont (E.I.) de Nemours & Co. $5,970
90 PPG Industries, Inc. 6,261
- ------------------------------------------------------------------------
12,231
- ------------------------------------------------------------------------
CAPITAL GOODS - 1.3%
205 Worthington Industries, Inc. 3,088
- ------------------------------------------------------------------------
CONSUMER DURABLES - 2.9%
120 Ford Motor Co. 7,080
- ------------------------------------------------------------------------
8
<PAGE>
------------------------------------
THE MONITOR INCOME EQUITY FUND (Continued)
<TABLE>
- ------------------------------------------------------
<CAPTION>
SHARES VALUE
(000) (000)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCK (CONTINUED)
- ------------------------------------------------------
CONSUMER NON-DURABLES - 10.7%
70 Bristol-Meyers Squibb Co. $ 8,046
80 Clorox Co. 7,630
125 Deluxe Corp. 4,477
70 Fortune Brands, Inc. 2,691
70 Gallaher Group PLC-ADR 1,531
60 RJR Nabisco 1,425
- ------------------------------------------------------
25,800
- ------------------------------------------------------
ELECTRICAL EQUIPMENT - 4.1%
108 General Electric Co. 9,828
- ------------------------------------------------------
ENERGY - 10.0%
72 Atlantic Richfield Co. 5,625
84 Exxon Corp. 5,990
100 Royal Dutch Petroleum Co., ADR 5,481
120 Texaco, Inc. 7,163
- ------------------------------------------------------
24,259
- ------------------------------------------------------
INDUSTRIAL PRODUCTS - 1.2%
175 RPM, Inc. 2,975
- ------------------------------------------------------
PHARMACEUTICALS - 5.7%
160 American Home Products Corp. 8,280
116 Pharmacia & Upjohn, Inc. 5,350
- ------------------------------------------------------
13,630
- ------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 3.9%
40 Developers Diversified Realty Corp. 1,568
75 Mack-Cali Realty Corp. 2,578
130 National Health Properties, Inc. 3,104
66 Simon DeBartolo Group, Inc. 2,129
- ------------------------------------------------------
9,379
- ------------------------------------------------------
TECHNOLOGY - 3.8%
90 Xerox Corp. 9,146
- ------------------------------------------------------
TELECOMMUNICATIONS - 7.3%
60 Bell Atlantic Corp. 2,738
100 GTE Corp. 5,562
70 Hong Kong Telecom Ltd., ADR 1,321
65 Telecom of New Zealand Ltd., ADR 2,129
125 US West Communications Group 5,875
- ------------------------------------------------------
17,625
- ------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT/
SHARES VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCK (CONTINUED)
- -------------------------------------------------------------------------------
UTILITIES - 7.9%
315 DPL, Inc. $ 5,709
120 Ipalco Enterprises, Inc. 5,332
90 Peoples Energy Corp. 3,476
150 Wisconsin Energy Corp. 4,556
- -------------------------------------------------------------------------------
19,073
- -------------------------------------------------------------------------------
TOTAL COMMON STOCK (IDENTIFIED COST $94,505) 197,989
- -------------------------------------------------------------------------------
PREFERRED STOCK - 1.6%
- -------------------------------------------------------------------------------
FINANCE-RETAIL - 0.6%
50 Security Capital Group Inc., Industrial Preferred
B 1,569
- -------------------------------------------------------------------------------
INSURANCE - 1.0%
50 SunAmerica Inc., PERCS 2,400
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCK (IDENTIFIED COST $3,405) 3,969
- -------------------------------------------------------------------------------
WARRANTS - 0.0%
3 Security Capital Group Inc., Group B 1
- -------------------------------------------------------------------------------
CORPORATE BONDS - 14.4%
$5,000 BankAmerica Corp., 7.125%, 03/01/09 5,337
3,000 Credit Suisse, VR, 7.900%, 05/01/07 (f) 3,236
5,000 Ford Global Bond, 7.200%, 06/15/07 5,325
2,000 General Motors, 8.800%, 03/01/21 2,492
5,000 Hydro-Quebec, 7.500%, 04/01/16 5,556
5,000 J.C. Penney & Co., 7.600%, 04/01/07 5,394
2,000 KeyCorp Institutional Capital-A, 7.826%, 12/01/26 2,177
5,000 Weyerhaeuser Co., 6.950%, 08/01/17 5,131
- -------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $33,293) 34,648
- -------------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 1.6%
3,799 Prudential Funding Corp., 5.851%, 07/01/98 3,799
- -------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 3,799
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $135,003) $240,406
- -------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments.
-------------------------------
THE MONITOR MICHIGAN TAX-FREE FUND June 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL SECURITIES - 97.4%
- ------------------------------------------------------------------------------
$335 Ann Arbor, Sewer Disposal Project, Series 12, RB, 6.950%,
07/01/03 $369
- ------------------------------------------------------------------------------
710 Ann Arbor, Water Supply System, Series T, MBIA, RB, 7.375%,
02/01/03 801
- ------------------------------------------------------------------------------
150 Bay County, West Side Regional, Sewer Disposal System, RB,
6.400%, 05/01/01 154
- ------------------------------------------------------------------------------
475 Bryon Center, Public Schools, GO, 4.800%, 05/01/11 475
- ------------------------------------------------------------------------------
305 Bryon Center, Public Schools, GO, 4.900%, 05/01/12 305
- ------------------------------------------------------------------------------
500 Cadillac, Public Schools, FGIC, GO, 5.375%, 05/01/10 521
- ------------------------------------------------------------------------------
230 Cedar Springs, Unlimited Tax, GO, 4.850%, 05/01/12 229
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -----------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL SECURITIES (CONTINUED)
- -----------------------------------------------------------------------------
$500 Chelsea, SDA, FGIC, GO, 5.500%, 05/01/08 $541
- -----------------------------------------------------------------------------
200 Clio, SDA, GO, 7.200%, 05/01/01 206
- -----------------------------------------------------------------------------
250 Dearborn, EDA, Oakwood Group Project, Series A, MBIA, RB,
Pre-refunded at 102, 6.550%,
08/15/01 (c) 273
- -----------------------------------------------------------------------------
500 Dearborn, SDA, GO, 5.250%, 05/01/06 524
- -----------------------------------------------------------------------------
250 Detroit, SDA, AMBAC, GO, Pre-refunded at 102, 7.100%,
05/01/01 (c) 275
- -----------------------------------------------------------------------------
500 Detroit, Sewer Disposal, MBIA, RB, 5.000%, 07/01/11 507
- -----------------------------------------------------------------------------
500 Detroit, Sewer Disposal Project, MBIA, RB, Pre-refunded at
101.5, 7.125%, 07/01/99 (c) 524
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE>
-------------------------------
THE MONITOR MICHIGAN TAX-FREE FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500 Fowlerville, Community, SDA, MBIA, GO, 5.350%, 05/01/10 $523
- -------------------------------------------------------------------------------
500 Gaylord, Community School Project, GO, Pre-refunded at 102,
6.600%, 05/01/02 (c) 552
- -------------------------------------------------------------------------------
545 Grand Rapids, Downtown Development Authority, MBIA, TA,
6.600%, 06/01/08 614
- -------------------------------------------------------------------------------
500 Grand Rapids, Sanitation and Sewer Authority, Improvement
Project, RB, 6.875%, 01/01/10 531
- -------------------------------------------------------------------------------
500 Grand Rapids, Water Supply Authority, FGIC, RB, 6.625%,
01/01/08 535
- -------------------------------------------------------------------------------
310 Grandville, Public SDA, FGIC, GO, 6.000%, 05/01/05 340
- -------------------------------------------------------------------------------
490 Greenville, Public School District, GO, 4.900%, 05/01/13 487
- -------------------------------------------------------------------------------
500 Grosse Ile Township, SDA, FGIC, GO, 5.600%, 05/01/10 546
- -------------------------------------------------------------------------------
500 Harrison, Community School Project, AMBAC, GO, 5.800%,
05/01/05 542
- -------------------------------------------------------------------------------
400 Holland, Electric Authority, RB, Pre-refunded at 100,
6.500%, 07/01/99 (c) 411
- -------------------------------------------------------------------------------
655 Holland, Water Supply System, Series A, RB, 5.250%, 07/01/12 674
- -------------------------------------------------------------------------------
500 Huron Valley, SDA, FGIC, GO, 5.450%, 05/01/08 534
- -------------------------------------------------------------------------------
500 Jenison, Michigan Public School Authority, FGIC, GO, 5.400%,
05/01/08 532
- -------------------------------------------------------------------------------
500 Kalamazoo, HFA, Borgess Medical Center Project, Series A,
FGIC, RB, 6.250%, 07/01/04 511
- -------------------------------------------------------------------------------
500 Kenowa Hills, Public Schools, MBIA, GO, 5.500%, 05/01/08 532
- -------------------------------------------------------------------------------
90 Kent, HFA, Blodgett Memorial Medical Center Project, Series
A, RB, 6.875%, 07/01/99 92
- -------------------------------------------------------------------------------
500 Kent, HFA, Blodgett Memorial Hospital Project, MBIA, RB,
5.750%, 07/01/09 510
- -------------------------------------------------------------------------------
200 Kent, HFA, Mary Free Hospital Project, Series A, RB, 6.500%,
04/01/05 211
- -------------------------------------------------------------------------------
500 Kent, HFA, Pine Rest Christian Hospital Project, FGIC, RB,
6.500%, 11/01/10 543
- -------------------------------------------------------------------------------
780 Lake Orion, Community School District, GO, 4.950%, 05/01/11 786
- -------------------------------------------------------------------------------
500 Lake Shore, Public Schools, Macomb County, GO, 5.400%,
05/01/12 523
- -------------------------------------------------------------------------------
525 Lansing, Building Authority, GO, ETM, 7.150%, 06/01/03 564
- -------------------------------------------------------------------------------
350 Lenawee County, Building Authority, Human Services Project,
AMBAC, GO, 6.000%, 05/01/09 381
- -------------------------------------------------------------------------------
500 Lincoln Park, SDA, FGIC, GO, 5.500%, 05/01/06 536
- -------------------------------------------------------------------------------
200 Macomb County, Waste Water Disposal Project, GO, 6.500%,
11/01/99 203
- -------------------------------------------------------------------------------
110 Mancelona, Public Schools, GO, 5.200%, 05/01/12 112
- -------------------------------------------------------------------------------
500 Mattawan, SDA, GO, 6.400%, 05/01/09 541
- -------------------------------------------------------------------------------
500 Michigan State Building Authority, AMBAC, GO, 6.750%,
10/01/07 544
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$1000 Michigan State Environmental Protection Program, GO, Pre-
refunded at 102, 6.250%, 11/01/02 (c) $1100
- -------------------------------------------------------------------------------
350 Michigan State, HEA, Hope College Project, Series B, RB,
5.900%, 04/01/09 365
- -------------------------------------------------------------------------------
500 Michigan State, HEA, Student Loan, Series 13, AMBAC, RB,
5.700%, 04/01/02 522
- -------------------------------------------------------------------------------
300 Michigan State, HFA, Central Michigan Community Hospital,
Series A, RB, 5.750%, 10/01/02 313
- -------------------------------------------------------------------------------
500 Michigan State, HFA, Daughters Charity Project, RB, 5.500%,
11/01/05 531
- -------------------------------------------------------------------------------
500 Michigan State, HFA, Detroit Medical Center Project, Series
A, RB, 6.375%, 08/15/09 539
- -------------------------------------------------------------------------------
750 Michigan State, HFA, Holland Community Hospital Project, RB,
5.250%, 01/01/08 765
- -------------------------------------------------------------------------------
500 Michigan State, HFA, Mercy Health Services, Series Q, AMBAC,
RB, 5.100%, 08/15/07 519
- -------------------------------------------------------------------------------
660 Michigan State, HFA, Otsego Memorial Hospital Project, RB,
6.000%, 01/01/09 700
- -------------------------------------------------------------------------------
615 Michigan State, HFA, Sparrow Obligated Group Project, MBIA,
RB, 6.300%, 11/15/03 663
- -------------------------------------------------------------------------------
200 Michigan State, HFA, Saint John Hospital Project, Series A,
AMBAC, RB, 5.750%, 05/15/04 214
- -------------------------------------------------------------------------------
420 Michigan State Housing Development Authority, Walled Lake
Villa Project, FSA, RB, 5.850%, 04/15/07 456
- -------------------------------------------------------------------------------
235 Michigan State Public Power Agency, Campbell Project, AMBAC,
RB, Pre-refunded at 100, 6.400%, 01/01/99 (c) 238
- -------------------------------------------------------------------------------
400 Michigan State Strategic Fund, Lutheran Social Services
Project, RB, 5.200%, 09/01/04 416
- -------------------------------------------------------------------------------
435 Northern Michigan University, AMBAC, RB, 5.500%, 12/01/09 458
- -------------------------------------------------------------------------------
500 Oakland County, EDA, Cranbrock Elderly Community Project,
RB, 6.375%, 11/01/14 558
- -------------------------------------------------------------------------------
500 Oakland County, Sewer Revenue, 6.250%, 11/01/06 517
- -------------------------------------------------------------------------------
500 Ottawa County, Holland Township Extension, GO, 6.800%,
08/01/05 538
- -------------------------------------------------------------------------------
500 Paw Paw, Public School District, FGIC, GO, 6.500%, 05/01/09 583
- -------------------------------------------------------------------------------
150 Rochester Hills, SDA, GO, Pre-refunded at 100, 6.500%,
05/01/07 (c) 162
- -------------------------------------------------------------------------------
200 Rochester Hills, Transportation Fund, GO, 6.250%, 08/01/05 204
- -------------------------------------------------------------------------------
500 Rockford, Public School Authority, GO, 5.600%, 05/01/05 531
- -------------------------------------------------------------------------------
640 Saginaw Valley State University, RB, 5.000%, 07/01/12 647
- -------------------------------------------------------------------------------
865 Saginaw Water Authority, RB, 6.000%, 07/01/07 897
- -------------------------------------------------------------------------------
500 Saint Joseph, Mercy Memorial Medical Center, AMBAC, RB,
5.125%, 01/01/09 514
- -------------------------------------------------------------------------------
230 Saranac, SDA, GO, 5.700%, 05/01/07 247
</TABLE>
- --------------------------------------------------------------------------------
10
<PAGE>
------------------------------
THE MONITOR MICHIGAN TAX-FREE FUND (Continued)
- ------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
MUNICIPAL SECURITIES (CONTINUED)
- ------------------------------------------------------------------------------
$400 Troy Downtown Development Authority, Series A, TA, RB,
6.100%, 11/01/10 $443
- ------------------------------------------------------------------------------
250 University of Michigan, Hospital Revenue, Series A, RB,
5.700%, 12/01/04 266
- ------------------------------------------------------------------------------
300 University of Michigan, Hospital Revenue, Series A-1, RB,
5.250%, 12/01/10 310
- ------------------------------------------------------------------------------
500 University of Michigan, Major Capital Projects, RB, 5.800%,
04/01/10 534
- ------------------------------------------------------------------------------
500 Utica, Community Schools Project, GO, 5.700%, 05/01/06 537
- ------------------------------------------------------------------------------
200 Walled Lake, SDA, GO, Pre-refunded at 102, 6.500%, 05/01/99
(c) 208
- ------------------------------------------------------------------------------
500 Warren, SDA, GO, Pre-refunded at 102, 6.700%, 05/01/01 (c) 544
- -------------------------------------------------------------------------------
405 Warren, Transportation Fund, GO, 5.000%, 06/01/07 414
- -------------------------------------------------------------------------------
500 West Ottawa, Public School District, FGIC, GO, 5.400%,
05/01/09 529
- -------------------------------------------------------------------------------
TOTAL MICHIGAN SECURITIES (IDENTIFIED COST $34,341) 36,096
- -------------------------------------------------------------------------------
CASH EQUIVALENT - 2.7%
990 Federated Michigan Municipal Cash Trust 990
- -------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT (IDENTIFIED COST $990)
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $35,331) 37,086
- -------------------------------------------------------------------------------
---------------------------------
THE MONITOR OHIO TAX-FREE FUND June 30, 1998 (unaudited)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
OHIO LONG-TERM MUNICIPAL SECURITIES - 90.1%
- -------------------------------------------------------------------------------
$500 Akron, GO, 5.300%, 12/01/11 $519
- -------------------------------------------------------------------------------
215 Alliance, CSD, AMBAC, 6.200%, 12/01/01 229
- -------------------------------------------------------------------------------
300 Aurora, CSD, FGIC, 5.500%, 12/01/07 324
- -------------------------------------------------------------------------------
290 Aurora, GO, Pre-refunded at 102, 7.350%, 12/01/99 (c) 309
- -------------------------------------------------------------------------------
280 Avon Lake, Water System, AMBAC, 5.100%, 10/01/05 292
- -------------------------------------------------------------------------------
250 Beachwood, CSD, 6.600%, 12/01/04 272
- -------------------------------------------------------------------------------
200 Bedford, CSD, Energy Conservation Improvement, 5.400%,
06/15/03 209
- -------------------------------------------------------------------------------
215 Bedford, CSD, Energy Conservation Improvement, 5.350%,
06/15/02 223
- -------------------------------------------------------------------------------
250 Blue Ash, GO, 6.500%, 11/01/99 259
- -------------------------------------------------------------------------------
500 Butler County, 5.000%, 12/01/12 504
- -------------------------------------------------------------------------------
250 Butler County, HRB, Middletown Hospital, FGIC, 5.250%,
11/15/00 257
- -------------------------------------------------------------------------------
250 Centerville, CSD, 6.625%, 12/01/99 259
- -------------------------------------------------------------------------------
500 Chagrin Falls, Exempted School District, 5.100%, 12/01/10 516
- -------------------------------------------------------------------------------
250 Cincinnati, 6.750%, 12/01/01 272
- -------------------------------------------------------------------------------
250 Cincinnati, Street Improvement, 7.000%, 12/01/99 261
- -------------------------------------------------------------------------------
500 Cleveland Heights, Series B, 5.600%, 12/01/02 529
- -------------------------------------------------------------------------------
200 Cleveland, GO, Series B, AMBAC, 6.400%, 10/01/02 217
- -------------------------------------------------------------------------------
500 Cleveland, Public Power System, Series B, MBIA, 5.900%,
11/15/01 529
- -------------------------------------------------------------------------------
250 Columbus, CSD, FGIC, 5.050%, 12/01/02 259
- -------------------------------------------------------------------------------
241 Columbus, GO, 5.700%, 07/15/06 256
- -------------------------------------------------------------------------------
250 Columbus, GO, 6.300%, 04/15/03 264
- -------------------------------------------------------------------------------
270 Columbus, Series 2, 5.350%, 05/15/03 285
- -------------------------------------------------------------------------------
500 Columbus, Series B, 6.300%, 01/01/05 541
- -------------------------------------------------------------------------------
300 Columbus, Series D, 5.250%, 09/15/11 314
- -------------------------------------------------------------------------------
250 Copley, Fairlawn, CSD, 5.150%, 12/01/01 258
- -------------------------------------------------------------------------------
500 Cuyahoga County, GO, 5.200%, 11/15/09 526
- -------------------------------------------------------------------------------
500 Cuyahoga County, HRB, 5.250%, 01/01/13 512
- -------------------------------------------------------------------------------
500 Cuyahoga County, Series B, 4.500%, 10/01/00 506
- -------------------------------------------------------------------------------
200 Cuyahoga Falls, GO, MBIA, 5.400%, 12/01/06 214
- -------------------------------------------------------------------------------
500 Dayton, Capital Facilities, 5.000%, 12/01/12 504
- -------------------------------------------------------------------------------
400 Delaware, GO, 5.400%, 11/01/02 410
- -------------------------------------------------------------------------------
250 Dover, Electric System, FGIC, 5.500%, 12/01/07 269
- -------------------------------------------------------------------------------
250 Dublin, CSD, FGIC, 6.050%, 12/01/03 272
- -------------------------------------------------------------------------------
250 Dublin, CSD, FGIC, 6.150%, 12/01/04 276
- -------------------------------------------------------------------------------
500 Dublin, CSD, MBIA, 5.000%, 12/02/08 521
- -------------------------------------------------------------------------------
250 Eastlake, GO, 5.000%, 12/01/04 259
- -------------------------------------------------------------------------------
440 Elyria, GO, 5.100%, 12/01/11 450
- -------------------------------------------------------------------------------
500 Euclid, GO, 5.000%, 12/01/12 504
- -------------------------------------------------------------------------------
500 Euclid, GO, 5.300%, 12/01/07 531
- -------------------------------------------------------------------------------
500 Euclid, GO, 5.450%, 12/01/08 536
- -------------------------------------------------------------------------------
250 Euclid, GO, 6.400%, 12/01/04 273
- -------------------------------------------------------------------------------
420 Euclid, GO, Pre-refunded at 102, 7.000%, 12/01/99 (c) 446
- -------------------------------------------------------------------------------
11
<PAGE>
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$245 Fairfield, CSD, FGIC, 5.650%, 12/01/06 $266
- -------------------------------------------------------------------------------
500 Findlay, GO, 5.500%, 07/01/08 539
- -------------------------------------------------------------------------------
250 Findlay, SSRB, 5.200%, 07/01/06 261
- -------------------------------------------------------------------------------
500 Franklin County, 5.050%, 12/01/05 525
- -------------------------------------------------------------------------------
285 Franklin County, Convention Authority, MBIA,
5.500%, 12/01/03 304
- -------------------------------------------------------------------------------
305 Franklin County, GO, MBIA, 6.000%, 09/01/06 335
- -------------------------------------------------------------------------------
500 Franklin County, HRB, Childrens Hospital, Series A, 5.800%,
11/01/10 532
- -------------------------------------------------------------------------------
250 Franklin County, HRB, Childrens Hospital, Series A, 6.500%,
05/01/07 274
- -------------------------------------------------------------------------------
500 Franklin County, HRB, Childrens Hospital, Series A, Pre-
refunded at 102, 6.400%, 11/01/01 (c) 545
- -------------------------------------------------------------------------------
500 Franklin County, HRB, Doctors Hospital, 5.050%, 12/01/99 506
- -------------------------------------------------------------------------------
550 Franklin County, HRB, Holy Cross Hospital, Series A, 7.200%,
06/01/00 581
- -------------------------------------------------------------------------------
515 Gahanna, GO, 5.250%, 06/01/02 535
- -------------------------------------------------------------------------------
580 Gahanna, GO, 5.550%, 06/01/05 621
- -------------------------------------------------------------------------------
250 Gahanna, Series A, Pre-refunded at 102, 6.400%, 06/01/01 (c) 270
- -------------------------------------------------------------------------------
250 Grandview Heights, 7.100%, 12/01/06 274
- -------------------------------------------------------------------------------
250 Grandview Heights, CSD, 5.400%, 12/01/05 266
- -------------------------------------------------------------------------------
300 Greene County, Water System, Series A, FGIC, 5.750%,
12/01/09 331
- -------------------------------------------------------------------------------
500 Hamilton County, GO, 5.100%, 12/01/11 513
- -------------------------------------------------------------------------------
155 Hamilton County, HRB, Childrens Hospital, BIG, 6.750%,
05/15/02 159
- -------------------------------------------------------------------------------
250 Hamilton County, HRB, Childrens Hospital, MBIA, 4.600%,
05/15/00 252
- -------------------------------------------------------------------------------
500 Hamilton County, HRB, Childrens Hospital, Series D, FGIC,
4.900%, 05/15/03 514
- -------------------------------------------------------------------------------
500 Hamilton County, HRB, Christ Hospital, Series A, FGIC,
6.500%, 01/01/02 529
- -------------------------------------------------------------------------------
500 Hamilton County, HRB, Episcopal Retirement, Fifth Third Bank
LOC, 5.900%, 01/01/99 505
- -------------------------------------------------------------------------------
300 Hamilton County, Museum Center, 5.950%, 12/01/02 323
- -------------------------------------------------------------------------------
500 Hamilton County, SSRB, 4.700%, 12/01/09 508
- -------------------------------------------------------------------------------
155 Hamilton County, SSRB, Series A, 6.300%, 12/01/01 166
- -------------------------------------------------------------------------------
305 Hamilton County, SSRB, Series A, 6.400%, 12/01/03 329
- -------------------------------------------------------------------------------
95 Hamilton County, SSRB, Series A, Pre-refunded at 102,
6.300%, 06/01/01 (c) 102
- -------------------------------------------------------------------------------
195 Hamilton County, SSRB, Series A, Pre-refunded at 102,
6.400%, 06/01/01 (c) 211
- -------------------------------------------------------------------------------
500 Hamilton County, Waste Water Systems, RB, Series A, FSA,
4.800%, 10/15/12 495
- -------------------------------------------------------------------------------
390 Hamilton, Electric System RB, Series A, FGIC, 5.100%,
10/15/99 396
- -------------------------------------------------------------------------------
500 Hilliard, CSD, 4.800%, 12/01/08 512
- -------------------------------------------------------------------------------
250 Hilliard, CSD, AMBAC, 5.000%, 12/01/03 259
- -------------------------------------------------------------------------------
500 Hilliard, CSD, Series A, 5.350%, 12/01/04 527
- -------------------------------------------------------------------------------
170 Hilliard, GO, 5.350%, 12/01/06 179
- -------------------------------------------------------------------------------
180 Hilliard, GO, 5.500%, 12/01/07 193
- -------------------------------------------------------------------------------
245 Indian Hill, Water Works, RB, 4.900%, 06/01/05 256
- -------------------------------------------------------------------------------
500 Jefferson County, GO, 4.950%, 12/01/12 508
- -------------------------------------------------------------------------------
500 Kent State University, MBIA, 5.300%, 05/01/10 524
- -------------------------------------------------------------------------------
500 Kent State University, Series A, 4.700%, 05/01/10 500
- -------------------------------------------------------------------------------
585 Kettering, GO, 5.050%, 12/01/04 607
- -------------------------------------------------------------------------------
255 Lakewood, CSD, 5.050%, 12/01/05 266
- -------------------------------------------------------------------------------
535 Lakewood, GO, 5.850%, 12/01/02 572
- -------------------------------------------------------------------------------
250 Lakota, LSD, AMBAC, 6.400%, 12/01/00 264
- -------------------------------------------------------------------------------
500 Lorain County, HRB, 6.000%, 09/01/08 558
- -------------------------------------------------------------------------------
500 Lorain County, Water Authority, AMBAC,
4.950%, 10/01/04 518
- -------------------------------------------------------------------------------
200 Marysville, Village School, AMBAC,
6.900%, 12/01/00 213
- -------------------------------------------------------------------------------
500 Mason, CSD, GO, 5.150%, 12/01/12 511
- -------------------------------------------------------------------------------
250 Mentor, Street Improvement, Series 1991-A,
6.700%, 12/01/03 268
- -------------------------------------------------------------------------------
250 Miami County, GO, 4.875%, 12/01/10 253
- -------------------------------------------------------------------------------
500 Miami University, 5.400%, 12/01/05 529
- -------------------------------------------------------------------------------
200 Miami Valley, Regional Transit Authority, 5.100%, 12/01/01 206
- -------------------------------------------------------------------------------
500 Montgomery County, GO, 5.400%, 12/01/11 525
- -------------------------------------------------------------------------------
270 Montgomery County, GO, 5.600%, 12/01/05 283
- -------------------------------------------------------------------------------
285 Montgomery County, GO, 5.750%, 12/01/06 299
- -------------------------------------------------------------------------------
500 Montgomery County, HRB, Miami Valley Hospital, Series A,
AMBAC, 6.100%, 11/15/02 536
- -------------------------------------------------------------------------------
500 Montgomery County, Series A, Pre-refunded at 100, 6.450%,
09/01/01 (c) 535
- -------------------------------------------------------------------------------
500 Montgomery County, Series A, Pre-refunded at 100, 6.500%,
09/01/01 (c) 536
- -------------------------------------------------------------------------------
250 Muskingum County, HRB, Bethesda Hospital, Connie Lee
Insured, 5.350%, 12/01/07 265
- -------------------------------------------------------------------------------
500 Northeast, Regional Sewer District, AMBAC,
6.400%, 11/15/03 542
- -------------------------------------------------------------------------------
235 Norwalk, Water Works System, Series 1996,
5.550%, 04/01/09 252
- -------------------------------------------------------------------------------
250 Norwalk, Water Works System, Series 1996,
5.600%, 04/01/10 267
- -------------------------------------------------------------------------------
500 Ohio Municipal Electric Generation Agency, AMBAC, 4.750%,
02/15/00 506
- -------------------------------------------------------------------------------
500 Ohio State Building Authority, Correction Facility, Series
A, 6.500%, 10/01/04 542
- -------------------------------------------------------------------------------
12
<PAGE>
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500 Ohio State Building Authority, James Rhodes Center, Series
A, 6.200%, 06/01/04 $536
- -------------------------------------------------------------------------------
250 Ohio State Capital Facilities, Series 1995, AMBAC, 5.800%,
06/01/03 267
- -------------------------------------------------------------------------------
300 Ohio State Economic Development, Sysco Food Service, 6.600%,
12/01/03 334
- -------------------------------------------------------------------------------
250 Ohio State, HEF, John Carroll University,
5.350%, 10/01/05 264
- -------------------------------------------------------------------------------
250 Ohio State, HEF, Oberlin College, 4.500%, 10/01/99 252
- -------------------------------------------------------------------------------
555 Ohio State, HEF, Ohio Northern University, Connie Lee,
4.900%, 05/01/03 572
- -------------------------------------------------------------------------------
250 Ohio State, HEF, University of Dayton, FGIC,
6.100%, 12/01/01 266
- -------------------------------------------------------------------------------
445 Ohio State, HEF, Denison University,
5.400%, 11/01/11 463
- -------------------------------------------------------------------------------
250 Ohio State, HEF, Oberlin College, 5.000%, 10/01/02 258
- -------------------------------------------------------------------------------
500 Ohio State Public Facilities, Mental Health, Series A, MBIA,
6.750%, 12/01/01 527
- -------------------------------------------------------------------------------
250 Ohio State Public Facilities, Series A, MBIA,
6.500%, 06/01/00 261
- -------------------------------------------------------------------------------
250 Ohio State Public Facilities, Series 11B, AMBAC, 5.700%,
11/01/99 256
- -------------------------------------------------------------------------------
750 Ohio State Turnpike, RB, Series A, 5.350%, 02/15/09 787
- -------------------------------------------------------------------------------
500 Ohio State University, Series A2, 5.750%, 12/01/09 532
- -------------------------------------------------------------------------------
500 Ohio State Water Development Authority, Clean Air Project,
MBIA, 5.650%, 06/01/05 533
- -------------------------------------------------------------------------------
250 Olmstead Falls, LSD, FGIC, 6.300%, 12/15/01 268
- -------------------------------------------------------------------------------
250 Pickerington, LSD, AMBAC, 5.550%, 12/01/07 267
- -------------------------------------------------------------------------------
200 Portage County, AMBAC, 5.200%, 12/01/01 207
- -------------------------------------------------------------------------------
500 Rocky River, CSD, GO, 5.150%, 12/01/08 528
- -------------------------------------------------------------------------------
500 Solon, GO, 5.250%, 12/01/07 526
- -------------------------------------------------------------------------------
150 Solon, GO, 5.650%, 12/01/05 159
- -------------------------------------------------------------------------------
250 Solon, GO, 6.550%, 12/01/00 264
- -------------------------------------------------------------------------------
250 Solon, GO, 6.650%, 12/01/01 264
- -------------------------------------------------------------------------------
250 Solon, LSD, ETM, 6.850%, 12/01/00 266
- -------------------------------------------------------------------------------
245 South Euclid, Recreational Facilities,
6.150%, 12/01/00 257
- -------------------------------------------------------------------------------
250 South Western, CSD, ETM, 6.100%, 12/01/99 258
- -------------------------------------------------------------------------------
250 South Western, CSD, Series A, AMBAC,
6.000%, 12/01/04 271
- -------------------------------------------------------------------------------
250 Springfield, LSD, 6.000%, 12/01/02 267
- -------------------------------------------------------------------------------
250 State of Ohio, HRB, Series S, 4.500%, 05/15/00 252
- -------------------------------------------------------------------------------
500 State of Ohio, HRB, Series T, 4.800%, 05/15/01 511
- -------------------------------------------------------------------------------
500 Strongsville, GO, 6.700%, 12/01/11 582
- -------------------------------------------------------------------------------
250 Summit County, GO, MBIA, 5.650%, 12/01/07 268
- -------------------------------------------------------------------------------
500 The Ohio State University, Series A2,
5.300%, 12/01/01 519
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
OHIO LONG-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500 Toledo, SSRB, Series A, MBIA, 7.250%, 11/15/00 $516
- -------------------------------------------------------------------------------
500 Troy, GO, 6.250%, 12/01/11 576
- -------------------------------------------------------------------------------
550 Twinsburg, LSD, 5.400%, 12/01/09 586
- -------------------------------------------------------------------------------
500 University of Cincinnati, MBIA, 5.100%, 06/01/11 515
- -------------------------------------------------------------------------------
250 University of Cincinnati, MBIA, 6.400%, 12/01/03 273
- -------------------------------------------------------------------------------
250 University of Cincinnati, Series R5, 5.150%, 06/01/05 260
- -------------------------------------------------------------------------------
250 University of Cincinnati, Series R9, 5.600%, 06/01/09 260
- -------------------------------------------------------------------------------
250 University of Cincinnati, Series V, 5.250%, 06/01/08 260
- -------------------------------------------------------------------------------
265 University of Cincinnati, Series V, 5.350%, 06/01/09 277
- -------------------------------------------------------------------------------
500 Vandalia, 5.450%, 12/01/10 527
- -------------------------------------------------------------------------------
175 Warren County, Sewer Improvement, Lower Miami Valley,
5.250%, 12/01/08 184
- -------------------------------------------------------------------------------
185 Warren County, Sewer Improvement, Lower Miami Valley,
5.350%, 12/01/09 196
- -------------------------------------------------------------------------------
170 Warren County, SSRB, Series A, Pre-refunded at 102, 6.950%,
12/01/00 (c) 185
- -------------------------------------------------------------------------------
400 Warren County, Water System Improvement, P&G Project,
5.250%, 12/01/07 420
- -------------------------------------------------------------------------------
235 Warren County, Water Works, FGIC,
6.100%, 12/01/02 253
- -------------------------------------------------------------------------------
470 Westerville, Water System, 5.900%, 12/01/04 508
- -------------------------------------------------------------------------------
500 Westlake, CSD, Series A, 5.500%, 12/01/10 532
- -------------------------------------------------------------------------------
500 Westlake, GO, 5.350%, 12/01/10 536
- -------------------------------------------------------------------------------
250 Worthington, CSD, FGIC, 5.850%, 06/01/02 265
- -------------------------------------------------------------------------------
250 Worthington, CSD, MBIA, 7.150%, 12/01/00 266
- -------------------------------------------------------------------------------
250 Wright State University, AMBAC, 5.000%, 05/01/06 258
- -------------------------------------------------------------------------------
TOTAL OHIO LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $57,411) 60,470
- -------------------------------------------------------------------------------
OTHER LONG-TERM MUNICIPAL SECURITIES - 0.9%
- -------------------------------------------------------------------------------
500 Puerto Rico Commonwealth, Mead Corp., Deutsche Bank LOC,
6.500%, 07/01/11 591
- -------------------------------------------------------------------------------
TOTAL OTHER LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $562) 591
- -------------------------------------------------------------------------------
SHORT-TERM MUNICIPAL SECURITIES - 9.0%
- -------------------------------------------------------------------------------
250 Archibold, LSD, Pre-refunded at 102,
6.800%, 12/01/98 (c) 258
- -------------------------------------------------------------------------------
230 Bowling Green, CSD, ETM, 6.900%, 12/01/98 233
- -------------------------------------------------------------------------------
500 Butler County, SSRB, AMBAC, 4.800%, 12/01/98 502
- -------------------------------------------------------------------------------
400 Cincinnati & Hamilton County, Daily VRDNs, Kenwood Office,
Kredeitbank LOC,
3.700%, 09/01/25 400
- -------------------------------------------------------------------------------
250 Columbus, Pre-refunded at 102, 7.000%, 03/01/99 (c) 260
- -------------------------------------------------------------------------------
300 Columbus, Weekly VRDNs, Westdeutsche Landesbank SPA,
3.400%, 06/01/16 300
- -------------------------------------------------------------------------------
250 Cuyahoga County, Pre-refunded at 102,
7.000%, 10/01/98 (c) 257
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE>
------------------------------------
THE MONITOR OHIO TAX-FREE FUND (Continued)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
OHIO SHORT-TERM MUNICIPAL SECURITIES (CONTINUED)
- -------------------------------------------------------------------------------
$500 Cuyahoga County, Pre-refunded at 102,
6.900%, 01/01/99 (c) $528
- -------------------------------------------------------------------------------
600 Franklin County, HRB, Daily VRDNs, Franciscan Sister, Chase
Manhattan LOC, 3.900%, 07/01/15 600
- -------------------------------------------------------------------------------
700 Hamilton County, Weekly VRDNs, RB, Health Care System, Fifth
Third Bank LOC, 3.500%, 07/01/17 700
- -------------------------------------------------------------------------------
200 Hamilton County, Daily VRDNs, HRB, Franciscan Health,
Sumitomo Bank Ltd. LOC,
4.750%, 03/01/17 200
- -------------------------------------------------------------------------------
230 Hilliard, GO, 6.750%, 12/01/98 233
- -------------------------------------------------------------------------------
265 Mentor, Series A1, 6.800%, 12/01/98 268
- -------------------------------------------------------------------------------
250 Ohio State, HEF, Xavier University, ETM,
7.100%, 11/01/98 253
- -------------------------------------------------------------------------------
125 Ohio State Building Authority, Series A, Pre-refunded at
102, 7.250%, 03/01/99 (c) 130
- -------------------------------------------------------------------------------
125 Ohio State Building Authority, Series H, Pre-refunded at
102, 7.250%, 08/01/99 (c) 132
- -------------------------------------------------------------------------------
250 Sandusky, AMBAC, 6.650%, 12/01/98 253
- -------------------------------------------------------------------------------
360 The Ohio State University, Weekly VRDNs, Series 85B,
National Westminster Bank LOC,
3.450%, 12/01/01 360
- -------------------------------------------------------------------------------
200 Upper Arlington, CSD, Pre-refunded at 102,
6.800%, 10/01/98 (c) 207
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES (IDENTIFIED COST $5,983) $ 6,074
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $63,956) $67,135
- -------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
-----------------------
THE MONITOR FIXED INCOME SECURITIES FUND June 30, 1998
(unaudited)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
CORPORATE BONDS - 74.4%
- -------------------------------------------------------------------------------
BANKS AND SAVINGS & LOANS - 6.1%
$1,000 ABN Amro, 7.250%, 05/31/05 $1,059
1,000 Banc One, 7.000%, 07/15/05 1,047
250 BankAmerica Corp., 7.750%, 07/15/02 265
250 Citicorp, 9.750%, 08/01/99 260
1,000 Citicorp, 7.250%, 09/01/08 1,066
500 Comerica, 9.750%, 05/01/99 514
1,000 First Tennessee Bank, 6.400%, 04/01/08 1,010
1,000 KeyCorp, 6.750%, 03/15/06 1,027
1,000 Mellon Bank N.A., 6.500%, 08/01/05 1,020
1,000 NBD Bancorp, 7.125%, 05/15/07 1,061
250 Security Pacific Corp., 9.750%, 05/15/99 258
1,000 Swiss Bank Corp.--New York, 7.250%, 09/01/06 1,065
- -------------------------------------------------------------------------------
9,652
- -------------------------------------------------------------------------------
BASIC INDUSTRY - 2.7%
500 Air Products & Chemicals, Inc., 8.875%, 08/01/01 540
250 Arco Chemical Co., 9.900%, 11/01/00 271
1,000 Norsk Hydro, 6.700%, 01/15/18 1,001
250 Weyerhaeuser Co., 9.050%, 02/01/03 278
1,000 Weyerhaeuser Co., 7.250%, 07/01/13 1,077
1,000 Worthington Industries, Inc., 7.125%, 05/15/06 1,059
- -------------------------------------------------------------------------------
4,226
- -------------------------------------------------------------------------------
CAPITAL GOODS - 0.2%
250 Caterpillar, Inc., 9.375%, 07/15/00 267
- -------------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 15.0%
1,500 American Home Products Corp., 6.500%, 10/15/02 1,526
1,000 Amgen, Inc., 6.500%, 12/01/07 1,016
1,000 Bergen Brunswig Corp., 7.250%, 06/01/05 1,062
1,000 Cardinal Health, 6.000%, 01/15/06 979
1,000 Carnival Corp., 6.150%, 10/01/03 1,001
1,000 Darden Restaurants, Inc., 6.375%, 02/01/06 986
250 Dayton Hudson Corp., 10.000%, 12/01/00 271
1,000 E.W. Scripps Co., 6.625%, 10/15/07 1,032
800 Gerber Products, 9.000%, 10/15/06 947
750 Grand Met Investment Corp., 7.125%, 09/15/04 788
1,000 Harvard University, 8.125%, 04/15/07 1,132
- -------------------------------------------------------------------------------
CONSUMER GOODS & SERVICES (CONTINUED)
$1,000 Hertz Corp., 7.000%, 07/15/03 $1,028
1,000 J.C. Penney & Co., 6.875%, 10/15/15 1,026
1,200 Knight Ridder, 9.875%, 04/15/09 1,528
250 Limited, Inc., 9.125%, 02/01/01 266
1,000 Limited, Inc., 7.800%, 05/15/02 1,041
750 May Department Stores Co., 9.875%, 06/15/00 804
1,000 McDonald's Corp., 8.875%, 04/01/11 1,229
500 Philip Morris Co., Inc., 7.625%, 05/15/02 524
1,000 Ralston Purina, 9.250%, 10/15/09 1,213
1,000 Rubbermaid, Inc., 6.600%, 11/15/06 1,035
500 Scripps Howard, Inc., 7.375%, 12/15/98 502
1,000 Stewart Enterprises, 6.700%, 12/01/03 1,016
250 Universal Corp., 9.250%, 02/15/01 268
1,500 V.F. Corp., 7.600%, 04/01/04 1,594
- -------------------------------------------------------------------------------
23,814
- -------------------------------------------------------------------------------
DIVERSIFIED INDUSTRIAL - 0.8%
500 Joseph E. Seagram & Sons, Inc., 7.000%, 04/15/08 523
500 Watts Industries, 8.375%, 12/01/03 549
250 Whirlpool Corp., 9.500%, 06/15/00 265
- -------------------------------------------------------------------------------
1,337
- -------------------------------------------------------------------------------
ENERGY-OIL & GAS - 1.0%
1,000 Ashland Oil, Inc., 7.710%, 05/11/07 1,084
500 Consolidated Natural Gas Co., 5.875%, 10/01/98 499
- -------------------------------------------------------------------------------
1,583
- -------------------------------------------------------------------------------
FINANCE COMPANIES - 8.2%
1,000 Abbey National PLC, 6.690%, 10/17/05 1,024
1,000 Ameritech Capital, 6.550%, 01/15/28 1,016
1,000 Bear Stearns, 6.625%, 01/15/04 1,014
1,000 Countrywide Funding Corp., 8.250%, 07/15/02 1,069
1,000 Crown Cork & Seal Finance PLC, 7.000%, 12/15/06 1,036
1,000 CSW Investments, 7.450%, 08/01/06 1,066
500 Eaton Off Shore, Ltd., 9.000%, 02/15/01 537
1,000 Ford Motor Credit Corp., 7.750%, 03/15/05 1,081
500 Kimco Realty, 6.500%, 10/01/03 501
14
<PAGE>
------------
THE MONITOR FIXED INCOME SECURITIES FUND (Continued)
- ------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- ------------------------------------------------------------------------------
FINANCE COMPANIES (CONTINUED)
$1,000 MBNA Corp., 6.875%, 06/01/05 $1,027
1,000 Salomon Brothers, 6.750%, 01/15/06 1,025
1,300 Smurfit Capital, 6.750%, 11/20/05 1,328
1,300 SunAmerica, Inc., 7.340%, 08/30/05 1,378
- ------------------------------------------------------------------------------
13,102
- ------------------------------------------------------------------------------
(D) FOREIGN INDUSTRIAL - 4.0%
1,000 Canadian National Railroad, 7.000%, 03/15/04 1,031
1,000 English China Clay, 7.375%, 10/01/02 1,040
750 Hydro-Quebec, Canada, 7.375%, 02/01/03 785
1,000 Hydro-Quebec, Canada, 9.750%, 01/15/18 1,149
500 Northern Telecom, Ltd., 8.750%, 06/12/01 537
1,000 Philips Electronics, 8.375%, 09/15/06 1,132
615 Rhone-Poulenc, 7.750%, 01/15/02 644
- ------------------------------------------------------------------------------
6,318
- ------------------------------------------------------------------------------
(D) FOREIGN SOVEREIGN - 4.8%
1,000 Barcelona City, Spain, 8.125%, 02/15/05 1,106
1,000 Gen De Catalunya, 6.375%, 12/15/07 1,011
1,000 Province of Ontario, Canada, 6.000%, 02/21/06 1,001
500 Province of Ontario, Canada, 6.125%, 06/28/00 503
250 Province of Quebec, Canada, 8.800%, 04/15/03 278
1,000 Province of Quebec, Canada, 8.625%, 01/19/05 1,134
1,000 Republic of Finland, 7.875%, 07/28/04 1,113
1,550 Republic of Iceland, 6.125%, 02/01/04 1,562
- ------------------------------------------------------------------------------
7,708
- ------------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 8.6%
1,000 Atlantic City Electric, 6.750%, 05/12/08 1,030
500 Baltimore Gas & Electric Co., 6.625%, 03/15/08 518
1,000 Cajun Electric Power, 9.520%, 03/15/19 1,049
1,000 Cincinnati Gas & Electric, 6.400%, 04/01/08 1,003
1,100 Duke Energy Corporation, 6.375%, 03/01/08 1,112
815 Iowa Electric Power & Light, 8.625%, 05/15/01 871
1,300 Jersey Central Power & Light, 7.125%, 10/01/04 1,352
1,000 Minnesota Power & Light, 7.750%, 06/01/07 1,056
1,000 National Rural Utilities, 7.200%, 10/01/15 1,073
1,000 Northwestern Public Services, 7.100%, 08/01/05 1,062
1,000 Otter Tail Power Co., 6.375%, 12/01/07 1,014
1,000 Pennsylvania Power & Light, 6.875%, 02/01/03 1,035
1,000 Public Service Electric & Gas, 6.250%, 01/01/07 1,006
500 Western Resources, Inc., 7.250%, 07/01/99 506
- ------------------------------------------------------------------------------
13,687
- ------------------------------------------------------------------------------
INDUSTRIAL - 11.3%
1,000 Archer-Daniels-Midland Co., 7.500%, 03/15/27 1,136
1,000 Boeing Co., 7.250%, 06/15/25 1,108
1,500 Borg-Warner Auto, 7.000%, 11/01/06 1,564
1,000 Cargill, Inc., 6.875%, 05/01/28 1,045
1,000 Carpenter Technology, 6.530%, 04/15/09 1,004
1,500 Dow Chemical, 8.550%, 10/15/09 1,762
1,000 E G & G, Inc., 6.800%, 10/15/05 1,044
1,000 Goodrich BF Co., 6.450%, 04/15/08 1,009
1,000 Johnson Controls, 6.300%, 02/01/08 1,000
1,000 Kerr-McGee Corp., 6.625%, 10/15/07 1,027
545 Monsanto Co., 8.875%, 12/15/09 659
1,000 Nalco Chemical Co., 6.250%, 05/15/08 1,005
1,000 Olsten Corp., 7.000%, 03/15/06 1,037
400 Polaroid Corporation, 7.250%, 01/15/07 422
1,000 Reynolds & Reynolds, 7.000%, 12/15/06 1,044
1,000 Servicemaster LP, 6.950%, 08/15/07 1,047
1,000 Toro Company, 7.125%, 06/15/07 1,044
- ------------------------------------------------------------------------------
17,957
- ------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 4.7%
$1,000 Black & Decker Co., 7.500%, 04/01/03 $1,048
1,000 Carlisle Companies, Inc., 7.250%, 01/15/07 1,054
1,000 FBG (Fosters Brewing) Finance, Ltd., 6.750%, 11/15/05 1,020
1,200 Georgia Pacific Corp., 9.950%, 06/15/02 1,349
1,000 Millennium America, Inc., 7.000%, 11/15/06 1,035
1,000 Noranda, Inc., 7.000%, 07/15/05 1,011
1,000 Tosco Corp., 7.250%, 01/01/07 1,054
- ------------------------------------------------------------------------------
7,571
- ------------------------------------------------------------------------------
INSURANCE - 3.0%
1,000 Geico Corp., 7.500%, 04/15/05 1,081
1,000 Lincoln National Corp., 7.250%, 05/15/05 1,058
1,500 MBIA, Inc., 9.000%, 02/15/01 1,605
1,000 U.S. Life, 6.375%, 06/15/00 1,000
- ------------------------------------------------------------------------------
4,744
- ------------------------------------------------------------------------------
TECHNOLOGY - 1.0%
500 International Business Machines, 6.375%, 06/15/00 505
1,000 Motorola, Inc., 7.500%, 05/15/25 1,144
- ------------------------------------------------------------------------------
1,649
- ------------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATION - 1.6%
1,000 Comsat Corp., 8.950%, 05/15/01 1,074
900 GTE Corp., 9.100%, 06/01/03 1,006
500 Southwestern Bell Telephone Co., 6.625%, 04/01/05 515
- ------------------------------------------------------------------------------
2,595
- ------------------------------------------------------------------------------
TRANSPORTATION - 1.4%
1,000 Atchison Topeka & Santa Fe Railroad, 6.550%, 07/01/06 1,019
250 Union Pacific Co., 9.625%, 12/15/02 281
835 Union Pacific Co., 8.500%, 01/15/17 868
- ------------------------------------------------------------------------------
2,168
- ------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (IDENTIFIED COST $113,892) 118,378
- ------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 3.7%
1,516 Pool #345128, 6.500%, 01/15/24 1,512
861 Pool #352982, 7.500%, 05/15/24 884
1,700 Pool #372962, 7.000%, 03/15/24 1,727
697 Pool #373015, 8.000%, 06/15/24 723
962 Pool #391615, 8.500%, 09/15/24 1,014
- ------------------------------------------------------------------------------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(IDENTIFIED COST $5,706) 5,860
- ------------------------------------------------------------------------------
U.S. TREASURIES - 18.4%
13,000 U.S. Treasury Notes, 5.500%, 01/31/03 12,989
15,000 U.S. Treasury Notes, 5.500%, 02/15/08 14,978
1,000 U.S. Treasury Bonds, 8.750%, 08/15/20 1,374
- ------------------------------------------------------------------------------
TOTAL U.S. TREASURIES (IDENTIFIED COST $28,811) 29,341
- ------------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 1.8%
2,909 Prudential Funding Corp., 5.851%, 07/01/98 2,909
- ------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 2,909
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $151,318) $156,488
- ------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
15
<PAGE>
-------------
THE MONITOR INTERMEDIATE GOVERNMENT INCOME FUND June 30, 1998
(unaudited)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- -------------------------------------------------------------------------------
GOVERNMENT MORTGAGE-BACKED AGENCIES - 12.5%
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. - 0.9%
$ 89 Pool # 214693, 9.000%, 12/01/01 $ 92
886 Pool # C90005, 8.000%, 01/01/13 916
- -------------------------------------------------------------------------------
1,008
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP.--REMIC -
5.6%
165 Series 1183, 7.338%, 01/15/99 165
157 Series 1204, 7.000%, 11/15/05 157
1,000 Series 23, 5.500%, 08/25/16 993
557 Series 1290, 7.500%, 11/15/17 560
782 Series 1199, 7.150%, 07/15/18 784
4,060 Series 1502, 6.250%, 01/15/19 4,036
- -------------------------------------------------------------------------------
6,695
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.2%
50 Pool # 50469, 8.000%, 07/01/98 51
19 Pool # 50498, 8.500%, 10/01/98 19
39 Pool # 50509, 8.500%, 11/01/98 40
1,288 Pool # 124308, 7.500%, 05/01/07 1,325
- -------------------------------------------------------------------------------
1,435
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--
REMIC - 4.8%
1,011 Series 1992-113, 7.500%, 07/25/02 1,030
592 Series 1992-78, 7.500%, 12/25/05 594
547 Series 1992-147, 6.750%, 06/25/18 546
1,000 Series 1993-56, 6.350%, 07/25/18 1,001
2,475 Series 1992-210, 6.500%, 03/25/19 2,475
- -------------------------------------------------------------------------------
5,646
- -------------------------------------------------------------------------------
TOTAL GOVERNMENT MORTGAGE-BACKED AGENCIES
(IDENTIFIED COST $14,767) 14,784
- -------------------------------------------------------------------------------
GOVERNMENT AGENCIES - 39.5%
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK - 10.2%
2,000 6.125%, 09/20/00 2,018
2,000 6.020%, 09/06/01 2,000
1,000 6.480%, 01/08/02 1,011
3,000 6.330%, 12/03/02 3,014
2,000 6.030%, 04/17/03 2,001
2,000 5.880%, 04/15/08 2,021
- -------------------------------------------------------------------------------
12,065
- -------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. - 12.0%
1,000 6.600%, 11/12/99 1,012
1,000 6.550%, 01/04/00 1,013
1,500 7.140%, 07/31/02 1,503
2,500 6.120%, 01/21/03 2,506
1,000 6.550%, 04/02/03 1,000
2,000 6.830%, 06/15/05 2,032
2,000 7.000%, 07/06/05 2,040
3,000 6.540%, 11/06/07 3,041
- -------------------------------------------------------------------------------
14,147
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.4%
2,000 7.000%, 05/10/01 2,021
2,000 7.550%, 04/22/02 2,127
1,000 6.330%, 10/02/02 1,011
- -------------------------------------------------------------------------------
5,159
- -------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--MEDIUM TERM NOTES - 12.9%
$3,000 6.330%, 11/03/00 $ 3,003
2,000 5.790%, 01/22/01 1,993
1,000 6.630%, 06/05/01 1,015
1,000 6.500%, 12/27/01 1,010
2,000 7.090%, 10/13/05 2,003
4,000 6.880%, 11/20/06 4,100
1,000 6.240%, 01/14/08 1,006
1,120 6.170%, 01/15/08 1,121
- -------------------------------------------------------------------------------
15,251
- -------------------------------------------------------------------------------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $46,102) 46,622
- -------------------------------------------------------------------------------
U.S. TREASURY NOTES - 45.8%
4,000 8.250%, 07/15/98 4,006
2,000 6.375%, 01/15/99 2,008
2,000 6.875%, 08/31/99 2,030
1,000 7.875%, 11/15/99 1,031
2,000 6.250%, 05/31/00 2,026
2,000 5.625%, 11/30/00 2,004
2,000 8.000%, 05/15/01 2,129
2,000 7.875%, 08/15/01 2,130
1,000 6.250%, 10/31/01 1,020
1,000 7.500%, 11/15/01 1,058
1,000 6.250%, 02/28/02 1,022
2,000 5.750%, 08/15/03 2,021
3,000 5.875%, 02/15/04 3,053
2,000 7.250%, 05/15/04 2,169
2,000 7.875%, 11/15/04 2,245
2,000 7.500%, 02/15/05 2,212
2,000 6.500%, 05/15/05 2,111
2,000 6.500%, 08/15/05 2,109
2,000 5.875%, 11/15/05 2,036
4,000 5.625%, 02/15/06 4,013
2,000 6.875%, 05/15/06 2,164
2,000 7.000%, 07/15/06 2,183
1,000 6.500%, 10/15/06 1,061
2,000 6.250%, 02/15/07 2,094
2,000 6.625%, 05/15/07 2,146
2,000 6.125%, 08/15/07 2,080
- -------------------------------------------------------------------------------
TOTAL U.S. TREASURY NOTES (IDENTIFIED COST $52,353) 54,161
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.7%
830 Morgan Stanley & Co., Inc., 5.700%, dated 06/30/98, due
07/01/98, repurchase price $829,931 (collateralized by
U.S. Treasury obligations, total par value $615,000,
9.000%, 11/15/18, total market value $861,384) 830
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $114,052) $116,397
- -------------------------------------------------------------------------------
See Notes To Portfolios of Investments.
16
<PAGE>
----------------------------
THE MONITOR MORTGAGE SECURITIES FUND June 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK - 5.2%
2,000 5.485%, 01/21/03 1,980
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -
28.0%
1,227 Gold 30 Yr., 6.500%, 12/01/25 1,226
2,298 Gold 30 Yr., 7.000%, 04/01/27 2,332
25 Pool # N90034, 9.000%, 11/01/98 25
102 Pool # 220007, 8.750%, 08/01/01 104
96 Pool # 380059, 9.500%, 10/01/04 100
1,728 Pool # E65142, 6.500%, 07/01/11 1,739
2,107 Pool # C80391, 7.000%, 03/01/26 2,138
1,927 Pool # D69575, 7.500%, 03/01/26 1,976
1,139 REMIC 163-F, 6.000%, 07/15/21 1,099
- --------------------------------------------------------------------------------
10,739
- --------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -
45.4%
178 Pool # 303459, 8.000%, 07/01/02 182
166 Pool # 050279, 8.500%, 02/01/05 172
888 Pool # 313817, 6.000%, 07/01/09 882
281 Pool # 250128, 7.500%, 09/01/09 289
1,164 Pool # 338449, 6.000%, 05/01/11 1,154
1,214 Pool # 250554, 6.500%, 05/01/11 1,221
983 Pool # 377753, 6.500%, 04/01/12 988
2,299 Pool # 397835, 6.500%, 09/01/12 2,312
1,628 Pool # 303753, 9.000%, 12/01/20 1,720
1,202 Pool # 303653, 7.000%, 12/01/25 1,219
1,409 Pool # 335836, 7.000%, 03/01/26 1,429
2,187 Pool # 250551, 7.000%, 05/01/26 2,217
1,103 Pool # 343212, 7.500%, 05/01/26 1,132
- --------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
1,500 REMIC 1998-M1, 6.250%, 01/25/08 1,501
1,000 REMIC 1996-53, 6.500%, 12/18/11 1,019
- --------------------------------------------------------------------------------
17,437
- --------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 13.4%
45 Pool # 305936, 8.500%, 04/15/06 47
241 Pool # 306058, 8.500%, 06/15/06 251
60 Pool # 328651, 8.500%, 05/15/07 62
442 Pool # 349379, 7.000%, 05/15/08 453
452 Pool # 348112, 7.000%, 06/15/08 462
520 Pool # 344961, 7.000%, 06/15/08 532
1,444 Pool # 200023, 9.500%, 05/15/18 1,575
971 Pool # 780398, 9.000%, 04/15/21 1,047
645 Pool # 780408, 9.000%, 10/15/22 692
- --------------------------------------------------------------------------------
5,121
- --------------------------------------------------------------------------------
U. S. TREASURY NOTES - 1.8%
675 6.875%, 07/31/99 685
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 5.6%
2,164 Morgan Stanley & Co. Inc., 5.700%, dated 06/30/98, due
07/01/98, repurchase price $2,164,643 (collateralized by
U.S. Treasury obligations, total par value $1,755,000,
10.375%, 11/15/09, total market value $2,215,962) 2,164
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST $37,365) $38,126
- --------------------------------------------------------------------------------
See Notes to Portfolios of Investments.
17
<PAGE>
--------------------
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME June 30, 1998
SECURITIES FUND (unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS - 71.0%
- --------------------------------------------------------------------------------
BANKS AND SAVINGS & LOANS - 12.8%
$1,000 Bank One, N.A., 7.375%, 12/01/02 $1,045
1,000 Bankers Trust Co., 9.200%, 07/15/99 1,030
1,100 Chase Manhattan Corp., 10.000%, 06/15/99 1,138
1,000 Chemical New York Corp., 9.750%, 06/15/99 1,033
1,000 Citicorp, 9.000%, 04/15/99 1,023
500 Comerica, 9.750%, 05/01/99 514
1,000 Dominion Bankshares, 9.625%, 06/15/99 1,033
1,000 First Chicago, 9.875%, 07/01/99 1,036
500 First Fidelity Bancorp, 9.625%, 08/15/99 519
1,000 First Security Bank Utah, 7.875%, 10/15/99 1,021
1,000 Greenpoint Bank, 6.700%, 07/15/02 1,010
1,000 Harris Bancorp, 9.375%, 06/01/01 1,086
1,000 Homeside Lending, 6.200%, 05/15/03 994
500 KeyCorp., 8.400%, 04/01/99 508
1,000 Mellon Corp., 6.300%, 06/01/00 1,006
1,000 Nationsbank Corp., 8.500%, 03/01/99 1,014
500 Sovran Financial, 9.750%, 06/15/99 518
1,000 Susquehanna Banc, 6.300%, 02/01/03 1,001
- --------------------------------------------------------------------------------
16,529
- --------------------------------------------------------------------------------
BASIC INDUSTRY - 4.1%
1,000 LaFarge Corp., 9.320%, 04/24/01 1,077
1,000 Praxair, Inc., 6.150%, 04/15/03 997
1,000 Reynolds Metals, 9.310%, 01/03/02 1,096
1,000 Tech Corp., 8.700%, 05/01/02 1,067
1,000 WMX Technologies, Inc., 8.250%, 11/15/99 1,024
- --------------------------------------------------------------------------------
5,261
- --------------------------------------------------------------------------------
CAPITAL GOODS - 0.4%
500 Baker Hughes, Inc., 7.625%, 02/15/99 506
- --------------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 11.3%
1,000 American Home Products, 7.700%, 02/15/00 1,028
1,000 American Stores, 9.125%, 04/01/02 1,094
1,000 Cox Communications, Inc., 6.375%, 06/15/00 1,006
1,000 Dayton Hudson, 7.500%, 03/01/99 1,010
1,000 Fortune Brands, Inc., 9.000%, 06/15/99 1,029
1,000 Leggett & Platt, Inc., 6.070%, 03/19/03 996
1,000 PepsiCo, Inc., 6.80%, 05/15/00 1,018
1,000 Philip Morris, Inc., 7.375%, 02/15/99 1,008
750 Safeway Stores, Inc., 8.570%, 04/01/03 819
500 Scripps Howard, Inc., 7.375%, 12/15/98 502
1,000 Sears Roebuck Co., 8.470%, 03/11/02 1,069
1,000 Sony Corp., 6.125%, 03/04/03 1,004
1,000 Super Valu Stores, Inc., 8.875%, 06/15/99 1,026
1,000 Tyson Foods, Inc., 6.000%, 01/15/03 991
1,000 York International Corp., 6.750%, 03/01/03 1,025
- --------------------------------------------------------------------------------
14,625
- --------------------------------------------------------------------------------
FINANCIAL - 12.5%
626 AFG Receivables Trust 97-A, 6.650%, 10/15/02 630
1,000 AT&T Capital Corp., 6.900%, 01/30/02 1,013
1,000 American Express Credit, 7.375%, 02/01/99 1,008
1,000 American General Finance, 6.875%, 07/01/99 1,010
1,050 Aristar, Inc., 7.875%, 02/15/99 1,062
1,200 Bear Stearns Co., 7.625%, 09/15/99 1,223
1,000 Chrysler Financial Corp., 13.250%, 10/15/99 1,088
500 CSW Investments, 6.950%, 08/01/01 510
1,000 Ford Motor Credit Co., 7.750%, 10/01/99 1,020
1,000 General Motors Acceptance Corp., 6.750%, 02/07/02 1,020
1,000 Goldman Sachs Group, 6.875%, 09/15/99 1,009
1,000 Household International, 6.000%, 03/15/99 1,000
1,000 International Lease Finance Corp., 5.750%, 07/01/98 1,000
1,000 Lehman Brothers, Inc., 7.625%, 08/01/98 1,001
1,000 McKesson Finance Canada, 6.550%, 11/01/02 1,011
500 Morgan Stanley & Co., Inc., 7.875%, 12/15/98 505
1,000 Spieker Properties, 6.800%, 12/15/01 1,018
- --------------------------------------------------------------------------------
16,128
- --------------------------------------------------------------------------------
(D) FOREIGN INDUSTRIAL - 2.1%
1,600 Pacific Dunlap, 9.750%, 12/15/00 1,730
1,000 Rhone-Poulenc, 6.750%, 10/15/99 1,008
- --------------------------------------------------------------------------------
2,738
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
(000) (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS (CONTINUED)
- --------------------------------------------------------------------------------
(D) FOREIGN SOVEREIGN - 2.0%
$1,000 Montreal Urban Commission, 9.125%, 03/15/01 $1,075
1,500 Province of Quebec, 9.375%, 04/01/99 1,537
- --------------------------------------------------------------------------------
2,612
- --------------------------------------------------------------------------------
GAS & ELECTRIC UTILITIES - 8.2%
1,000 Atlantic City Electric, 6.000%, 01/15/03 995
1,000 Commonwealth Edison, 7.500%, 01/01/01 1,006
1,000 Detroit Edison, 6.560%, 05/01/01 1,014
1,000 Iowa Electric Light & Power, 7.600%, 03/01/99 1,010
1,350 Penn Power & Light, 6.875%, 02/01/03 1,397
1,000 Public Service Co. of Colorado, 6.000%, 04/15/03 999
1,000 Public Service Electric, 6.875%, 01/01/03 1,031
1,000 Rochester Gas & Electric, 8.250%, 03/15/02 1,066
1,000 Scana Corp., 6.050%, 01/13/03 1,000
1,000 Southern California Edison, 7.500%, 04/15/99 1,011
- --------------------------------------------------------------------------------
10,529
- --------------------------------------------------------------------------------
INDUSTRIAL PRODUCTS - 7.1%
1,000 AAR Corp., 9.500%, 11/01/01 1,099
1,000 Allied Signal, 9.875%, 06/01/02 1,131
1,000 Black & Decker Corp., 7.500%, 04/01/03 1,047
1,000 Cooper Industries, Inc., 5.780%, 01/16/03 989
1,000 Eastman Kodak, 9.375%, 03/15/03 1,134
1,000 First Data Corp., 6.625%, 04/01/03 1,022
1,000 Ingersoll-Rand Corp., 6.875%, 02/01/03 1,030
1,000 Polaroid Corporation, 6.750%, 01/15/02 1,001
750 Ultramar Corp., 8.250%, 07/01/99 763
- --------------------------------------------------------------------------------
9,216
- --------------------------------------------------------------------------------
INSURANCE - 2.4%
1,000 Continental Corp., 8.250%, 04/15/99 1,016
1,000 Travelers, Inc., 7.750%, 06/15/99 1,017
1,000 U.S. Life, 6.375%, 06/15/00 1,000
- --------------------------------------------------------------------------------
3,033
- --------------------------------------------------------------------------------
OIL & GAS - 2.4%
1,000 Anadarko Petroleum Co., 6.750%, 03/15/03 1,025
1,000 Burlington Resources, 7.150%, 05/01/99 1,009
1,000 Elf Aquitaine, 7.750%, 05/01/99 1,014
- --------------------------------------------------------------------------------
3,048
- --------------------------------------------------------------------------------
TELEPHONE UTILITIES & COMMUNICATIONS - 2.3%
1,000 AirTouch Communications, 7.125%, 07/15/01 1,029
1,000 Cable & Wireless, 6.375%, 03/06/03 1,000
1,000 MCI Communications Corp., 6.250%, 03/23/99 1,001
- --------------------------------------------------------------------------------
3,030
- --------------------------------------------------------------------------------
TRANSPORTATION - 3.4%
1,500 CSX Corp., 9.500%, 08/01/00 1,599
765 Conrail, Inc., 9.750%, 06/01/00 816
1,000 Rollins Truck, 7.000%, 03/15/03 1,033
1,000 Union Pacific Corp., 6.250%, 03/15/99 1,001
- --------------------------------------------------------------------------------
4,449
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS (COST $90,813) 91,704
- --------------------------------------------------------------------------------
GOVERNMENT BONDS - 26.3%
- --------------------------------------------------------------------------------
GOVERNMENT AGENCIES - 2.3%
3,000 Federal National Mortgage Association,
6.700%, 08/10/01 3,030
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES - 24.0%
28,000 5.500%, 01/31/03 27,958
3,000 5.500%, 05/31/03 2,998
- --------------------------------------------------------------------------------
30,956
- --------------------------------------------------------------------------------
TOTAL GOVERNMENT BONDS (COST $33,892) 33,986
- --------------------------------------------------------------------------------
(A) COMMERCIAL PAPER - 1.7%
2,151 Prudential Funding Corp., 5.851%, 07/01/98 2,151
- --------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER (AT AMORTIZED COST) 2,151
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (COST $126,856) $127,841
- --------------------------------------------------------------------------------
See Notes to Portfolios of Investments.
18
<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) Putable Security--the maturity date shown represents the put date.
(f) 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:
ADR--American Depository Receipt IDA--Industrial Development
AMBAC--American Municipal Bond Authority
Assurance Corporation IDR--Industrial Development
BANs--Bond Anticipation Notes Revenue
BIG--Bond Investors Guaranty LOC--Letter of Credit
CSD--City School District LSD--Local School District
EDA--Economic Development Authority LTD--Limited
EDR--Educational Development Revenue MBIA--Municipal Bond Investors
ETM--Escrowed to Maturity Assurance
FGIC--Financial Guaranty Insurance Company PERCS--Preferred Equity
FNMA--Federal National Mortgage Association Redemption Cumulative Stock
FSA--Federal Assurance Association PLC--Public Limited Company
GNMA--Government National RB--Revenue Bond
Mortgage Association REMIC--Real Estate Mortgage
GO--General Obligation Investment Conduit
HEA--Higher Education Authority SDA--School District Authority
HEF--Higher Education Facility SPA--Standby Purchase Agreement
HFA--Housing Finance Authority SSRB--Sewer System Revenue Bonds
HRB--Hospital Revenue Bonds TA--Tax Allocation
TANs--Tax Anticipation Notes
VR--Variable Rate--rates
disclosed are in effect June 30,
1998
The categories of investments are shown as a percentage of net assets.
The following is a summary of investment information as of June 30, 1998. (000)
VRDNs--Variable Rate Demand
Notes-rates disclosed are in
effect June 30, 1998
<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....... $772,493** -- -- -- 769,032
Ohio Municipal Money
Market Fund............ 185,151** -- -- -- 184,798
U.S. Treasury Money
Market Fund............ 533,759** -- -- -- 531,951
Growth Fund............. 187,864 156,137 159,834 (3,697) 343,924
Income Equity Fund...... 135,003 105,403 105,735 (332) 241,123
Michigan Tax-Free Fund.. 35,331 1,755 1,755 -- 37,043
Ohio Tax-Free Fund...... 63,956 3,179 3,179 -- 67,122
Fixed Income Securities
Fund................... 151,318 5,170 5,238 (68) 159,171
Intermediate Government
Income Fund............ 114,052 2,345 2,397 (52) 118,133
Mortgage Securities
Fund................... 37,365 761 816 (55) 38,340
Short/Intermediate Fixed
Income Securities Fund. 126,856 985 1,040 (55) 129,198
- ---------------------------------------------------------------------------------------------
</TABLE>
** At amortized cost.
(See Notes which are an integral part of the Financial Statements)
19
<PAGE>
CONCENTRATION OF CREDIT RISK
The Monitor Ohio Municipal Money Market Fund, The Monitor Michigan Tax-Free
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 June 30, 1998,the percentage of portfolio investments by each revenue
source were as follows:
THE MONITOR OHIO MUNICIPAL MONEY MARKET FUND
Revenue Bonds:
Lease Bonds............................................................. 5.1%
Hospital Bonds.......................................................... 20.0%
Health Care Bonds....................................................... 4.6%
Higher Education Bonds.................................................. 12.1%
Industrial Bonds........................................................ 20.3%
Utility Bonds........................................................... 13.5%
General Obligations:..................................................... 24.3%
Cash Equivalents:........................................................ 0.1%
THE MONITOR MICHIGAN TAX-FREE FUND
Revenue Bonds:
Health Care Bonds....................................................... 22.8%
Higher Education Bonds.................................................. 6.8%
Housing Bonds........................................................... 1.2%
Industrial Bonds........................................................ 3.9%
Transportation Bonds.................................................... 0.6%
Utility Bonds........................................................... 16.6%
General Obligations:..................................................... 45.4%
Cash Equivalents:........................................................ 2.7%
THE MONITOR OHIO TAX-FREE FUND
Revenue Bonds:
Lease Bonds.................................... 3.4%
Hospital Bonds................................. 10.1%
Health Care Bonds.............................. 1.2%
Higher Education Bonds......................... 11.4%
Highway Bonds.................................. 3.1%
Industrial Bonds............................... 0.5%
Utility Bonds.................................. 10.3%
General Obligations:............................ 60.0%
20
<PAGE>
[This Page Intentionally Left Blank]
21
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets & Liabilities
- --------------------------------------------------------------------------------
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
MONITOR MONITOR
MONITOR OHIO MUNICIPAL U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments at value............... $718,111 $185,151 $256,730
Investments in repurchase 54,382 -- 277,029
agreements........................
Cash............................... -- -- --
Dividends and interest receivable.. 15 1,246 573
Receivable for investments sold.... -- -- --
Receivable for fund shares sold.... -- -- --
Deferred expenses.................. 8 -- --
- -------------------------------------------------------------------------------
Total Assets...................... 772,516 186,397 534,332
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for investments purchased.. -- 1,004 --
Payable for fund shares redeemed... -- -- --
Dividend payable................... 3,171 500 2,131
ACCRUED EXPENSES
Investment advisory fees........... 177 52 86
Administration personnel and 69 18 47
services..........................
Custodian and recordkeeping fees 40 9 24
and expenses......................
Distribution service fees-- 23 9 5
Investment Shares.................
Other.............................. 4 7 88
- -------------------------------------------------------------------------------
Total Liabilities................. 3,484 1,599 2,381
- -------------------------------------------------------------------------------
NET ASSETS:
Paid-in-capital.................... 769,120 184,810 531,942
Net unrealized appreciation -- -- --
(depreciation) of investments.....
Accumulated net realized gain (88) (12) 9
(loss) on investments.............
Undistributed net investment -- -- --
income............................
- -------------------------------------------------------------------------------
Total Net Assets.................. 769,032 184,798 531,951
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS:
Trust Shares....................... 538,773 87,197 472,322
Investment Shares.................. 230,259 97,601 59,629
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....................... 538,804 87,205 472,317
Investment Shares.................. 230,316 97,605 59,628
- -------------------------------------------------------------------------------
Total shares outstanding ($0.001 769,120 184,810 531,945
par value)........................
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Investments, at identified cost.... $772,493 $185,151 $533,759
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(All numbers in thousands except net asset values)
</TABLE>
*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
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
MONITOR MONITOR
MONITOR OHIO MUNICIPAL U.S. TREASURY
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................... $18,333 $3,256 $14,696
Dividend income.................... -- -- --
- --------------------------------------------------------------------------------
Total income...................... 18,333 3,256 14,696
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees........... 943 269 546
Administrative personnel and 360 99 300
services..........................
Custodian and recordkeeping fees 183 50 153
and expenses......................
Transfer and dividend disbursing 22 18 21
agent fees and expenses...........
Fund share registration costs...... 34 13 27
Auditing fees...................... 12 2 18
Legal fees......................... 6 1 5
Trustees' fees..................... 5 1 5
Printing and postage............... 16 3 24
Insurance premiums................. 8 1 11
Distribution services fees......... 242 124 75
Miscellaneous...................... 3 1 4
- --------------------------------------------------------------------------------
Total expenses.................... 1,834 582 1,189
- --------------------------------------------------------------------------------
Deduct-
Waiver of investment advisory fees. -- (45) --
Waiver of distribution services (145) (74) (45)
fees..............................
- --------------------------------------------------------------------------------
NET EXPENSES....................... 1,689 463 1,144
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME.............. 16,644 2,793 13,552
- --------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on (88) -- 9
investments (identified cost
basis)............................
Net change in unrealized -- -- --
appreciation (depreciation) on
investments.......................
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (88) -- 9
(LOSS) ON INVESTMENTS.............
- --------------------------------------------------------------------------------
CHANGE IN NET ASSETS RESULTING FROM $16,556 $2,793 $13,561
OPERATIONS........................
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
(All numbers in thousands)
(See Notes which are an integral part of the Financial Statements)
*This period reflects combined operations for the period prior to and
subsequent to the reorganization referred to in Note (1)
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>
$344,001 $240,406 $67,135 $156,488 $35,962 $127,841
-- -- -- -- 2,164 --
-- -- 15 -- -- --
230 878 521 2,791 268 2,457
-- -- -- -- 6 --
-- 4 -- -- -- --
2 -- -- -- -- --
- ------------------------------------------------------------------------------
344,233 241,288 67,671 159,279 38,400 130,298
- ------------------------------------------------------------------------------
-- -- 514 -- -- 1,007
-- -- -- -- 14 --
-- -- -- -- -- --
164 118 27 65 17 53
37 21 5 14 4 11
22 11 3 7 6 3
6 1 -- -- 1 --
80 14 -- 22 18 26
- ------------------------------------------------------------------------------
309 165 549 108 60 1,100
- ------------------------------------------------------------------------------
169,604 129,608 63,924 151,883 61,144 127,490
156,137 105,403 3,179 5,170 761 985
18,143 6,051 16 2,117 (23,666) 718
40 61 3 1 101 5
- ------------------------------------------------------------------------------
343,924 241,123 67,122 159,171 38,340 129,198
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
327,713 240,449 65,613 157,598 37,270 129,198
16,211 674 1,509 1,573 1,070 N/A
$ 49.82 $ 40.13 $ 21.67 $ 21.58 $ 8.24 $ 20.04
$ 49.80 $ 40.14 $ 21.66 $ 21.57 $ 8.26 N/A
$ 49.82 $ 40.13 $ 21.67 $ 21.58 $ 8.24 $ 20.04
$ 51.88* $ 42.48*** $ 22.10** $ 22.01** $ 8.43** N/A
6,577 5,992 3,028 7,305 4,525 6,447
326 17 70 73 130 N/A
- ------------------------------------------------------------------------------
6,903 6,009 3,098 7,378 4,655 6,447
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
$187,864 $135,003 $63,956 $151,318 $37,365 $126,856
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<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>
$ 476 $ 1,230 $ 1,744 $ 5,201 $ 1,353 $ 4,149
1,550 2,887 -- -- -- --
- ------------------------------------------------------------------------------
2,026 4,117 1,744 5,201 1,353 4,149
- ------------------------------------------------------------------------------
868 685 164 390 96 318
159 125 36 85 21 70
81 64 18 44 12 36
13 19 7 14 9 17
7 10 2 7 14 11
2 4 -- -- -- --
-- 1 -- 1 -- --
1 2 -- -- -- 1
4 5 1 4 -- 2
2 3 1 1 -- 2
14 1 2 2 3 --
1 2 -- 1 32 2
- ------------------------------------------------------------------------------
1,152 921 231 549 187 459
- ------------------------------------------------------------------------------
-- -- -- -- (39 ) --
-- -- -- -- (1 ) --
- ------------------------------------------------------------------------------
1,152 921 231 549 147 459
- ------------------------------------------------------------------------------
874 3,196 1,513 4,652 1,206 3,690
- ------------------------------------------------------------------------------
18,143 6,051 16 2,137 44 1,432
54,703 16,825 (217) (864) (91) (1,425)
- ------------------------------------------------------------------------------
72,846 22,876 (201) 1,273 (47) 7
- ------------------------------------------------------------------------------
$ 73,720 $ 26,072 $ 1,312 $ 5,925 $ 1,159 $ 3,697
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
Statements of Assets and Liabilities
JUNE 30, 1998 (UNAUDITED)
(All numbers in thousands, except net asset values)
<TABLE>
<CAPTION>
MONITOR MICHIGAN MONITOR INTERMEDIATE
TAX-FREE FUND GOVERNMENT INCOME FUND
- -------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
INVESTMENTS AT VALUE............... $37,086 $115,567
Investments in repurchase agree-
ments............................ -- 830
Cash.............................. -- --
Dividends and interest receivable. 531 1,788
Receivable for investments sold... -- --
- -------------------------------------------------------------------------------
Total Assets...................... 37,617 118,185
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for securities purchased.. 486 --
ACCRUED EXPENSES:
Investment Advisory Fees.......... 13 44
Administrative personnel and serv-
ices............................. 3 9
Custodian and recordkeeping fees
and expenses..................... 11 12
Distribution service fees -- In-
vestment Shares.................. 5 2
Other............................. 56 (15)
- -------------------------------------------------------------------------------
Total Liabilities................. 574 52
- -------------------------------------------------------------------------------
NET ASSETS:
Paid-in-capital................... 35,293 117,269
Net unrealized appreciation (de-
preciation) of investments....... 1,755 2,345
Accumulated net realized gain
(loss) on investments............ (58) (1,712)
Undistributed net investment in-
come............................. 53 231
- -------------------------------------------------------------------------------
Total Net Assets.................. 37,043 118,133
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS:
Trust Shares...................... 27,332 114,921
Investment Shares................. 9,711 3,212
- -------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRO-
CEEDS PER SHARE:
Trust Shares...................... $ 10.96 $ 10.24
Investment Shares................. $ 10.96 $ 10.24
- -------------------------------------------------------------------------------
OFFERING PRICE PER SHARE:
Trust Shares...................... $ 10.96 $ 10.24
Investment Shares................. $ 11.18** $ 10.45**
- -------------------------------------------------------------------------------
SHARES OUTSTANDING:
Trust Shares...................... 2,495 11,218
Investment Shares................. 886 314
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Total shares outstanding ($0.001
par value)....................... 3,381 11,532
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Investments, at identified cost... $35,331 $114,052
</TABLE>
**Computation of Offering price: 100/98 of net asset value.
Statements of Operations
<TABLE>
<CAPTION>
MONITOR MICHIGAN MONITOR INTERMEDIATE
TAX-FREE FUND GOVERNMENT INCOME FUND
ONE MONTH ONE MONTH
ENDED *SIX MONTHS ENDED *SIX MONTHS
JUNE 30, ENDED JUNE 30, ENDED
1998 MAY 31, 1998 MAY 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $166 $944 $619 $3,803
- -------------------------------------------------------------------------------
Total income................. 166 944 619 3,803
- -------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees..... 15 93 49 276
Administrative personnel and
services.................... 3 31 11 102
Custodian and recordkeeping
fees and expenses........... 2 3 5 20
Transfer and dividend
disbursing agent fees and
expenses.................... 1 16 2 34
Fund share registration
costs....................... -- 1 1 2
Auditing fees................ 1 1 1 --
Legal fees................... -- 5 -- --
Trustees' fees............... -- 3 1 7
Printing and postage......... 1 1 -- 12
Insurance premiums........... 1 2 1 1
Distribution services fees --
Investment Shares.......... 2 16 1 5
Miscellaneous................ -- 3 1 5
- -------------------------------------------------------------------------------
Total expenses............... 26 175 73 464
- -------------------------------------------------------------------------------
Deduct--
Waiver of investment advisory
fees........................ (2) (26) (5) (9)
Waiver of distribution
services fees............... -- (3) -- (1)
- -------------------------------------------------------------------------------
NET EXPENSES.................. 24 146 68 454
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME......... 142 798 551 3,349
- -------------------------------------------------------------------------------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on
investments (identified cost
basis)....................... 13 -- -- (4)
Net change in unrealized ap-
preciation (depreciation) on
investments.................. (38) 191 171 528
- -------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS... (25) 191 171 524
- -------------------------------------------------------------------------------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS.............. $117 $989 $722 $3,873
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
*This period reflects combined operations for the period prior to and
subsequent to the reorganization referred to in Note (1) Organization.
24
<PAGE>
[This Page Intentionally Left Blank]
25
<PAGE>
Statements of Changes In Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR
MONITOR OHIO U.S. TREASURY
MONITOR MONEY MUNICIPAL MONEY MONEY MARKET MONITOR GROWTH
MARKET FUND MARKET FUND FUND FUND
*SIX MONTHS SIX MONTHS SIX MONTHS *SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1998 DEC. 31, 1998 DEC. 31, 1998 DEC. 31, 1998 DEC. 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS--
Net investment income $ 16,644 $ 24,203 $ 2,793 $ 4,382 $ 13,552 $ 27,222 $ 874 $ 1,507
Net realized gain (loss)
on investment
transactions (88) -- -- -- 9 -- 18,143 11,145
Change in net unrealized
appreciation
(depreciation) of
investments -- -- -- -- -- -- 54,703 50,540
- ----------------------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 16,556 24,203 2,793 4,382 13,561 27,222 73,720 63,192
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM--
Net investment income:
Trust Shares (11,789) (18,452) (1,274) (2,112) (12,093) (24,783) (824) (1,480)
Investment Shares (4,855) (5,751) (1,519) (2,270) (1,459) (2,439) (17) (24)
Net realized gain on
investments:
Trust Shares -- -- -- -- -- -- -- (10,892)
Investment Shares -- -- -- -- -- -- -- (253)
- ----------------------------------------------------------------------------------------------------------------------
Change in net assets
from distributions to
shareholders (16,644) (24,203) (2,793) (4,382) (13,552) (27,222) (841) (12,649)
- ----------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--
Trust Shares:
Proceeds from shares
issued from merger 143,438 N/A N/A N/A N/A N/A 31,555 N/A
Proceeds from shares
issued 298,903 642,026 55,239 127,512 443,725 1,193,708 13,551 21,218
Reinvestment of
distributions 9 15 -- -- 36 27 291 4,292
Cost of shares redeemed (327,596) (555,953) (40,709) (111,499) (454,994) (1,184,780) (13,855) (22,496)
- ----------------------------------------------------------------------------------------------------------------------
Total Trust Shares
Transactions 114,754 86,088 14,530 16,013 (11,233) 8,955 31,542 3,014
- ----------------------------------------------------------------------------------------------------------------------
Investment Shares:
Proceeds from shares
issued from merger 110,010 N/A N/A N/A N/A N/A 6,030 N/A
Proceeds from shares
issued 112,856 212,817 115,538 150,492 134,053 150,381 663 536
Reinvestment of
distributions 2,629 4,422 161 349 401 930 17 274
Cost of shares redeemed (135,564) (174,411) (100,995) (142,046) (132,585) (141,437) (830) (793)
- ----------------------------------------------------------------------------------------------------------------------
Total Investment Shares
Transactions 89,931 42,828 14,704 8,795 1,869 9,874 5,880 17
- ----------------------------------------------------------------------------------------------------------------------
Change in net assets
from fund shares
transactions 204,685 128,916 29,234 24,808 (9,364) 18,829 37,422 3,031
- ----------------------------------------------------------------------------------------------------------------------
Total change in Net
Assets 204,597 128,916 29,234 24,808 (9,355) 18,829 110,301 53,574
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 564,435 435,519 155,564 130,756 541,306 522,477 233,623 180,049
- ----------------------------------------------------------------------------------------------------------------------
End of period $ 769,032 $ 564,435 $ 184,798 $ 155,564 $ 531,951 $ 541,306 $343,924 $233,623
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income
included in net assets
at end of period $ -- $ -- $ -- $ -- $ -- $ -- $ 40 $ 7
- ----------------------------------------------------------------------------------------------------------------------
SHARES ISSUED AND REDEEMED--
Trust Shares:
Shares issued from
merger 143,438 N/A N/A N/A N/A N/A 1,330 N/A
Shares issued 298,903 642,026 55,239 127,512 443,725 1,193,708 488 546
Reinvestment of
distributions 9 15 -- -- 36 27 6 102
Shares redeemed (327,596) (555,953) (40,709) (111,499) (454,994) (1,184,780) (494) (576)
- ----------------------------------------------------------------------------------------------------------------------
Total Trust Shares
Transactions 114,754 86,088 14,530 16,013 (11,233) 8,955 1,330 72
- ----------------------------------------------------------------------------------------------------------------------
Investment Shares
Shares issued from
merger 110,010 N/A N/A N/A N/A N/A 14 N/A
Shares issued 112,856 212,817 115,538 150,492 134,053 150,381 202 14
Reinvestment of
distributions 2,629 4,422 161 349 401 930 1 6
Shares redeemed (135,564) (174,411) (100,995) (142,046) (132,585) (141,437) (17) (20)
- ----------------------------------------------------------------------------------------------------------------------
Total Investment Shares
Transactions 89,931 42,828 14,704 8,795 1,869 9,874 200 --
- ----------------------------------------------------------------------------------------------------------------------
Net change in fund share
transactions 204,685 128,916 29,234 24,808 (9,364) 18,829 1,530 72
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
*This period reflects combined operations for the period prior to and
subsequent to the reorganization referred to in Note (1)
26
<PAGE>
<TABLE>
<CAPTION>
MONITOR SHORT/
MONITOR FIXED INTERMEDIATE FIXED
MONITOR INCOME MONITOR OHIO INCOME SECURITIES MONITOR MORTGAGE INCOME SECURITIES
EQUITY FUND TAX-FREE FUND FUND SECURITIES FUND FUND
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED JUNE 30, ENDED
1998 DEC. 31, 1998 DEC. 31, 1998 DEC. 31, 1998 DEC. 31, 1998 DEC. 31,
UNAUDITED)( 1997 (UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 3,196 $ 6,038 $ 1,513 $ 3,089 $ 4,652 $ 9,330 $ 1,206 $ 2,611 $ 3,690 $ 7,399
6,051 3,824 16 24 2,137 1,205 44 303 1,432 (337)
16,825 35,379 (217) 736 (864) 2,141 (91) 484 (1,425) 819
- ------------------------------------------------------------------------------------------------------------------
26,072 45,241 1,312 3,849 5,925 12,676 1,159 3,398 3,697 7,881
- ------------------------------------------------------------------------------------------------------------------
(3,192) (6,057) (1,491) (3,029) (4,650) (9,200) (1,147) (2,454) (3,699) (7,408)
(5) (2) (32) (78) (46) (103) (32) (82) --
-- (3,819) -- (18) -- -- -- -- -- --
-- (5) -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
(3,197) (9,883) (1,523) (3,125) (4,696) (9,303) (1,179) (2,536) (3,699) (7,408)
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
10,144 19,581 4,511 7,624 8,253 20,505 2,069 2,800 5,701 15,526
1,026 3,169 80 185 1,844 3,660 94 187 1,671 3,348
(8,178) (16,240) (3,097) (8,988) (7,089) (18,168) (1,932) (6,332) (5,017) (18,016)
- ------------------------------------------------------------------------------------------------------------------
2,992 6,510 1,494 (1,179) 3,008 5,997 231 (3,345) 2,355 858
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
347 263 243 124 74 93 41 13 N/A N/A
5 7 24 61 34 76 22 55 N/A N/A
-- (1) (221) (636) (163) (439) (73) (678) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
352 269 46 (451) (55) (270) (10) (610) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
3,344 6,779 1,540 (1,630) 2,953 5,727 221 (3,955) 2,355 858
- ------------------------------------------------------------------------------------------------------------------
26,219 42,137 1,329 (906) 4,182 9,100 201 (3,093) 2,353 1,331
- ------------------------------------------------------------------------------------------------------------------
214,904 172,767 65,793 66,699 154,989 145,889 38,139 41,232 126,845 125,514
- ------------------------------------------------------------------------------------------------------------------
$241,123 $214,904 $67,122 $65,793 $159,171 $154,989 $38,340 $38,139 $129,198 $126,845
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
$ 61 $ 40 $ 3 $ 13 $ 1 $ 44 $ 101 $ 75 $ 5 $ 14
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
263 595 208 355 384 979 250 347 284 780
27 93 4 8 86 175 11 23 84 168
(211) (485) (143) (420) (330) (868) (234) (779) (250) (906)
- ------------------------------------------------------------------------------------------------------------------
79 203 69 (57) 140 286 27 (409) 118 42
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
9 8 11 6 4 4 5 2 N/A N/A
-- -- 1 3 2 4 3 7 N/A N/A
-- -- (10) (29) (8) (21) (9) (84) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
9 8 2 (20) (2) (13) (1) (75) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
88 211 71 (77) 138 273 26 (484) 118 42
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
Statements of Changes In Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
MONITOR MICHIGAN MONITOR INTERMEDIATE
TAX-FREE FUND GOVERNMENT INCOME FUND
ONE ONE
MONTH *SIX MONTH *SIX
ENDED MONTHS YEAR ENDED MONTHS YEAR
JUNE 30, ENDED ENDED JUNE 30, ENDED ENDED
1998 MAY 31, NOV. 30, 1998 MAY 31, NOV. 30,
(UNAUDITED) 1998 1997 (UNAUDITED) 1998 1997
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS
OPERATIONS-
Net investment income $ 142 $ 798 $ 1,553 $ 551 $ 3,349 $ 6,737
Net realized gain (loss)
on investment
transactions 13 -- 31 -- (4) 51
Change in net unrealized
appreciation
(depreciation) of
investments (38) 191 297 171 528 258
- ----------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 117 989 1,881 722 3,873 7,046
- ----------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM--
Net investment income:
Trust Shares (115) (541) (1,147) (578) (2,988) (6,370)
Investment Shares (38) (193) (408) (15) (84) (244)
- ----------------------------------------------------------------------------------------
Change in net assets
from distributions to
shareholders (153) (734) (1,555) (593) (3,072) (6,614)
- ----------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS-
Trust Shares:
Proceeds from Shares
Issued 93 4,477 4,758 650 12,229 24,530
Reinvestment of
Distributions 6 7 -- 75 83 4
Cost of Shares Redeemed (179) (2,184) (3,128) (2,247) (11,835) (17,950)
- ----------------------------------------------------------------------------------------
Total Trust Shares
Transactions (80) 2,300 1,630 (1,522) 477 6,584
- ----------------------------------------------------------------------------------------
Investment Shares:
Proceeds from Shares
Issued 19 1,116 1,729 4 22 104
Reinvestment of
Distributions 30 172 301 12 78 193
Cost of Shares Redeemed (276) (837) (1,738) (24) (426) (2,008)
- ----------------------------------------------------------------------------------------
Total Investment Shares
Transactions (227) 451 292 (8) (326) (1,711)
- ----------------------------------------------------------------------------------------
Change in net assets
from Fund shares
transactions (307) 2,751 1,922 (1,530) 151 4,873
- ----------------------------------------------------------------------------------------
Total change in Net
Assets (343) 3,006 2,248 (1,401) 952 5,305
- ----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 37,386 34,380 32,132 119,534 118,582 113,277
- ----------------------------------------------------------------------------------------
End of period $37,043 $37,386 $34,380 $118,133 $119,534 $118,582
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income
included in net assets
at end of period $ 53 $ 64 $ -- $ 231 $ 273 $ (4)
- ----------------------------------------------------------------------------------------
SHARES ISSUED AND
REDEEMED--
Trust Shares:
Shares issued 8 409 443 63 1,198 2,439
Reinvestment of
Distributions 1 1 -- 7 8 --
Shares redeemed (16) (200) (290) (219) (1,160) (1,784)
- ----------------------------------------------------------------------------------------
Total Trust Shares
Transactions (7) 210 153 (149) 46 655
- ----------------------------------------------------------------------------------------
INVESTMENT SHARES:
Shares issued 2 101 161 1 2 10
Reinvestment of
Distributions 2 16 28 1 8 19
Shares redeemed (25) (76) (162) (2) (42) (200)
- ----------------------------------------------------------------------------------------
Total Investment Shares
Transactions (21) 41 27 -- (32) (171)
- ----------------------------------------------------------------------------------------
Net change in Fund share
transactions (28) 251 180 -- 14 484
- ----------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
*This period reflects combined operations for the period prior to and
subsequent to the reorganization referred to in Note (1) Organization.
28
<PAGE>
[This Page Intentionally Left Blank]
29
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
MONEY MARKET FUNDS
(For a share outstanding throughout the period)
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(C)
--------------------------------------------------------------------------
TRUST SHARES
THE MONITOR MONEY MARKET FUND
1998(a) $ 1.00 0.03 (0.03) $1.00 5.24%(d)
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
1998(a) $ 1.00 0.02 (0.02) $1.00 3.24%(d)
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
1998(a) $ 1.00 0.02 (0.02) $1.00 5.10%(d)
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
1998(a) $ 1.00 0.03 (0.03) $1.00 5.14%(d)
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
1998(a) $ 1.00 0.02 (0.02) $1.00 3.14%(d)
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
1998(a) $ 1.00 0.02 (0.02) $1.00 5.00%(d)
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(b) $ 1.00 0.01 (0.01) $1.00 0.54%(f)
--------------------------------------------------------------------------
(a) Six months ended June 30, 1998 (unaudited).
(b) Reflects operations for the period from October 19, 1993 (date of initial
public investment) to December 31, 1993.
(c) Based on net asset value, which does not reflect the sales load, if
applicable.
(d) Computed on an annualized basis.
(e) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(f) Not annualized.
(See Notes which are an integral part of the Financial Statements)
30
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
------------------------------------------------------------
NET EXPENSE NET ASSETS,
INVESTMENT WAIVER REDUCTION/ END OF PERIOD
EXPENSES INCOME REIMBURSEMENT(E) (000 OMITTED)
-------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.49%(d) 5.11%(d) -- $538,773
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
0.46%(d) 3.17%(d) 0.05%(d) $ 87,197
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
0.41%(d) 4.97%(d) -- $472,322
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
0.59%(d) 5.01%(d) 0.15%(d) $230,259
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
0.56%(d) 3.07%(d) 0.20%(d) $ 97,601
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
0.51%(d) 4.87%(d) 0.15%(d) $ 59,629
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%(d) 2.65%(d) 0.16%(d) $ 948
-------------------------------------------------------------------------------------
</TABLE>
31
<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
1998(a) $43.48 0.14 6.34 6.48 (0.14) --
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
1998(a) $36.30 0.54 3.83 4.37 (0.54) --
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
1998(a) $43.46 0.10 6.32 6.42 (0.08) --
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(B)
1998(a) $36.29 0.48 3.86 4.34 (0.49) --
1997 $31.20 0.65 5.72 6.37 (0.63) (0.65)
- --------------------------------------------------------------------------------------------
</TABLE>
(a) Six months ended June 30, 1998 (unaudited).
(b) Reflects operations for the period from May 1, 1997 (effective date of
Investment Shares) to December 31, 1997.
(c) Based on net asset value, which does not reflect the sales load, if
applicable.
(d) Computed on annualized basis.
(e) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(f) Not annualized.
(See Notes which are an integral part of the Financial Statements)
32
<PAGE>
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
NET ASSET ---------------------------------------
VALUE NET EXPENSE WAIVER NET ASSETS, PORTFOLIO
TOTAL END OF TOTAL INVESTMENT REDUCTION/ END OF PERIOD TURNOVER
DISTRIBUTIONS PERIOD RETURN(C) EXPENSES INCOME REIMBURSEMENT(E) (000 OMITTED) RATE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.14) $49.82 14.93% 0.79%(d) 0.61%(d) -- $327,713 7%
(2.40) $43.48 35.37% 0.80% 0.73% -- $228,138 12%
(1.96) $33.97 16.72% 0.83% 1.20% -- $175,764 21%
(3.54) $30.81 30.75% 0.86% 1.34% 0.05% $143,421 37%
(0.47) $26.30 2.28% 0.88% 1.52% 0.04% $103,463 42%
(0.49) $26.17 3.53% 0.84% 1.79% 0.04% $109,576 29%
(0.54) $40.13 12.11% 0.80%(d) 2.78%(d) -- $240,449 6%
(1.69) $36.30 25.99% 0.81% 3.08% -- $214,625 24%
(1.50) $30.26 16.88% 0.82% 3.50% -- $172,767 25%
(0.96) $27.25 29.26% 0.82% 3.85% -- $141,892 17%
(0.87) $21.93 (1.82%) 0.84% 3.91% -- $115,399 50%
(0.80) $23.21 10.85% 0.82% 3.29% -- $135,618 10%
(0.08) $49.80 14.79% 1.04%(d) 0.36%(d) -- $ 16,211 7%
(2.31) $43.46 35.04% 1.05% 0.48% -- $ 5,485 12%
(1.89) $33.96 16.43% 1.08% 0.93% -- $ 4,285 21%
(3.46) $30.81 30.40% 1.11% 1.08% 0.05% $ 3,777 37%
(0.40) $26.31 2.08% 1.13% 1.27% 0.04% $ 3,212 42%
(0.43) $26.16 3.25% 1.10% 1.54% 0.04% $ 3,961 29%
(0.49) $40.14 12.03% 1.05%(d) 2.50%(d) -- $ 674 6%
(1.28) $36.29 16.09%(f) 1.08%(d) 2.76%(d) -- $ 279 24%
- ----------------------------------------------------------------------------------------------------
</TABLE>
33
<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>
1998(a) $ 21.74 0.50 (0.07) 0.43 (0.50) --
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) --
<CAPTION>
THE MONITOR FIXED INCOME SECURITIES FUND
<S> <C> <C> <C> <C> <C> <C>
1998(a) $ 21.41 0.64 0.17 0.81 (0.64) --
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)
<CAPTION>
THE MONITOR MORTGAGE SECURITIES FUND
<S> <C> <C> <C> <C> <C> <C>
1998(a)(b) $ 8.24 0.26 (0.01) 0.25 (0.25) --
1997(g) $ 8.06 0.52 0.16 0.68 (0.50) --
1996(g) $ 8.09 0.55 (0.04) 0.51 (0.54) --
1995(g) $ 6.69 0.55 1.46 2.01 (0.55) --
1994(g) $ 9.93 0.89 (3.19) (2.30) (0.93) --
1993(g) $ 10.27 1.50 (0.28) 1.22 (1.46) (0.10)
<CAPTION>
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
<S> <C> <C> <C> <C> <C> <C>
1998(a) $ 20.04 0.58 -- 0.58 (0.58) --
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)
<CAPTION>
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
<S> <C> <C> <C> <C> <C> <C>
1998(a) $ 21.73 0.47 (0.07) 0.40 (0.47) --
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) --
<CAPTION>
THE MONITOR FIXED INCOME SECURITIES FUND
<S> <C> <C> <C> <C> <C> <C>
1998(a) $ 21.41 0.63 0.15 0.78 (0.62) --
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)
<CAPTION>
THE MONITOR MORTGAGE SECURITIES FUND
<S> <C> <C> <C> <C> <C> <C>
1998(a)(b) $ 8.26 0.25 (0.01) 0.24 (0.24) --
1997(g) $ 8.08 0.50 0.17 0.67 (0.49) --
1996(g) $ 8.12 0.53 (0.04) 0.49 (0.53) --
1995(g) $ 6.70 0.55 1.46 2.01 (0.55) --
1994(g) $ 9.94 0.87 (3.19) (2.32) (0.91) --
1993(g) $ 10.27 1.47 (0.27) 1.20 (1.43) (0.10)
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
DISTRIBUTIONS
IN EXCESS
OF NET
YEAR ENDED INVESTMENT
DECEMBER 31, INCOME(C)
- -------------------------------------------------------------------------------------------------------------------------
TRUST SHARES
THE MONITOR OHIO TAX-FREE FUND
<S> <C>
1998(a) --
1997 --
1996 --
1995 --
1994 --
1993 --
<CAPTION>
THE MONITOR FIXED INCOME SECURITIES FUND
<S> <C>
1998(a) --
1997 --
1996 --
1995 --
1994 --
1993 --
<CAPTION>
THE MONITOR MORTGAGE SECURITIES FUND
<S> <C>
1998(a)(b) --
1997(g) --
1996(g) --
1995(g) (0.06)
1994(g) (0.01)
1993(g) --
<CAPTION>
THE MONITOR SHORT/INTERMEDIATE FIXED INCOME SECURITIES FUND
<S> <C>
1998(a) --
1997 --
1996 --
1995 --
1994 --
1993 --
<CAPTION>
INVESTMENT SHARES
THE MONITOR OHIO TAX-FREE FUND
<S> <C>
1998(a) --
1997 --
1996 --
1995 --
1994 --
1993 --
<CAPTION>
THE MONITOR FIXED INCOME SECURITIES FUND
<S> <C>
1998(a) --
1997 --
1996 --
1995 --
1994 --
1993 --
<CAPTION>
THE MONITOR MORTGAGE SECURITIES FUND
<S> <C>
1998(a)(b) --
1997(g) --
1996(g) --
1995(g) (0.04)
1994(g) (0.01)
1993(g) --
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Six months ended June 30, 1998 (unaudited).
(b) Effective April 24, 1998, Piper Capital Management, Inc. ceased to serve
as the subadviser for The Monitor Mortgage Securities Fund.
(c) 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.
(d) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(e) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(f) Computed on an annualized basis.
(g) 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)
34
<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(D) EXPENSES INCOME REIMBURSEMENT(E) OMITTED) RATE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.50) $21.67 2.00% 0.70%(f) 4.64%(f) -- $ 65,613 2%
(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%
(0.64) $21.58 3.84% 0.70%(f) 5.97%(f) -- $157,598 46%
(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%
(0.25) $ 8.24 3.08% 0.75%(f) 6.28%(f) 0.20%(f) $ 37,270 20%
(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%
(0.58) $20.04 2.92% 0.72%(f) 5.79%(f) -- $129,198 54%
(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%
(0.47) $21.66 1.88% 0.95%(f) 4.39%(f) -- $ 1,509 2%
(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%
(0.62) $21.57 3.67% 0.95%(f) 5.72%(f) -- $ 1,573 46%
(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%
(0.24) $ 8.26 2.93% 1.00%(f) 6.03%(f) 0.44%(f) $ 1,070 20%
(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>
35
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
FIXED INCOME FUNDS (CONT'D)
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
DISTRIBUTIONS TO
NET REALIZED DISTRIBUTIONS TO SHAREHOLDERS
NET ASSET AND SHAREHOLDERS FROM NET
VALUE, NET UNREALIZED TOTAL FROM FROM NET REALIZED GAIN
YEAR ENDED BEGINNING INVESTMENT GAIN/(LOSS) ON INVESTMENT INVESTMENT ON INVESTMENT
NOVEMBER 30,(A) OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME TRANSACTIONS
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
THE MONITOR MICHIGAN TAX-FREE FUND
1998(b) $10.97 0.05 (0.01) 0.04 (0.05) --
1998(c) $10.89 0.25 0.06 0.31 (0.23) --
1997 $10.79 0.50 0.10 0.60 (0.50) --
1996 $10.79 0.50 -- 0.50 (0.50) --
1995 $ 9.97 0.49 0.82 1.31 (0.49) --
1994 $10.61 0.47 (0.63) (0.16) (0.47) (0.01)
1993 $10.24 0.49 0.37 0.86 (0.49) --
THE MONITOR INTERMEDIATE GOVERNMENT INCOME FUND
1998(b) $10.23 0.07 (0.01) 0.06 (0.05) --
1998(c) $10.16 0.29 0.04 0.33 (0.26) --
1997 $10.13 0.59 0.02 0.61 (0.58) --
1996 $10.24 0.59 (0.10) 0.49 (0.60) --
1995 $ 9.66 0.61 0.58 1.19 (0.61) --
1994 $10.46 0.57 (0.80) (0.23) (0.57) --
1993 $10.10 0.59 0.36 0.95 (0.59) --
INVESTMENT SHARES
THE MONITOR MICHIGAN TAX-FREE FUND
1998(b) $10.97 0.04 (0.01) 0.03 (0.04) --
1998(c) $10.89 0.24 0.06 0.30 (0.22) --
1997 $10.79 0.47 0.10 0.57 (0.47) --
1996 $10.79 0.48 -- 0.48 (0.48) --
1995 $ 9.97 0.49 0.82 1.31 (0.49) --
1994 $10.61 0.47 (0.63) (0.16) (0.47) (0.01)
1993 $10.24 0.49 0.37 0.86 (0.49) --
THE MONITOR INTERMEDIATE GOVERNMENT INCOME FUND
1998(b) $10.24 0.07 (0.02) 0.05 (0.05) --
1998(c) $10.16 0.28 0.05 0.33 (0.25) --
1997 $10.13 0.57 0.02 0.59 (0.56) --
1996 $10.24 0.57 (0.10) 0.47 (0.58) --
1995 $ 9.66 0.61 0.58 1.19 (0.61) --
1994 $10.46 0.57 (0.80) (0.23) (0.57) --
1993 $10.10 0.59 0.36 0.95 (0.59) --
- -------------------------------------------------------------------------------------------------
</TABLE>
(a) Financial highlights reflect the operations during the period prior to and
subsequent to the reorganization referred to in Notes (1) Organization. The
fiscal year end of The Monitor Michigan Tax-Free Fund and The Monitor
Intermediate Government Income Fund has been changed from November 30 to
December 31, effective June 1, 1998.
(b) One month ended June 30, 1998 (unaudited).
(c) Six months ended May 31, 1998.
(d) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(e) Expense ratios reflect the operating expenses in effect during the period
prior to and subsequent to the reorganization referred to in Notes (1)
Organization.
(f) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(g) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
36
<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 TURNOVER
DISTRIBUTIONS PERIOD RETURN(D) EXPENSES INCOME REIMBURSEMENT(F) (000 OMITTED) RATE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.05) $10.96 .33% 0.72%(g) 4.70%(g) 0.07%(g) $ 27,332 1%
(0.23) $10.97 2.86% 0.75%(e)(g) 4.55%(g) 0.14%(g) $ 27,440 2%
(0.50) $10.89 5.73% 0.73% 4.66% 0.27% $ 24,954 7%
(0.50) $10.79 4.78% 0.68% 4.72% 0.37% $ 23,082 16%
(0.49) $10.79 13.21% 0.70% 4.62% 0.48% $ 20,700 35%
(0.48) $ 9.97 (1.49%) 0.51% 4.50% 0.68% $ 15,495 22%
(0.49) $10.61 8.53% 0.35% 4.59% 1.03% $ 11,779 13%
(0.05) $10.24 .60% 0.68%(g) 5.65%(g) 0.05%(g) $114,921 0%
(0.26) $10.23 3.33% 0.76%(e)(g) 5.67%(g) 0.02%(g) $116,317 14%
(0.58) $10.16 6.27% 0.79% 5.91% -- % $115,064 28%
(0.60) $10.13 4.97% 0.79% 5.89% -- % $108,047 16%
(0.61) $10.24 12.64% 0.78% 6.09% -- % $114,646 27%
(0.57) $ 9.66 (2.23%) 0.83% 6.45% 0.02% $115,449 20%
(0.59) $10.46 9.60% 0.50% 5.66% 0.28% $105,820 17%
(0.04) $10.96 .30% 0.97%(g) 4.45%(g) 0.07%(g) $ 9,711 1%
(0.22) $10.97 2.75% 1.00%(e)(g) 4.30%(g) 0.21%(g) $ 9,946 2%
(0.47) $10.89 5.47% 0.98% 4.41% 0.37% $ 9,426 7%
(0.48) $10.79 4.61% 0.84% 4.55% 0.56% $ 9,050 16%
(0.49) $10.79 13.21% 0.70% 4.62% 0.48% $ 12,619 35%
(0.48) $ 9.97 (1.49%) 0.51% 4.50% 0.68% $ 12,249 22%
(0.49) $10.61 8.53% 0.35% 4.59% 1.03% $ 14,771 13%
(0.05) $10.24 .48% 0.93%(g) 5.40%(g) 0.05%(g) $ 3,212 0%
(0.25) $10.24 3.31% 1.01%(e)(g) 5.42%(g) 0.09%(g) $ 3,217 14%
(0.56) $10.16 5.99% 1.04% 5.66% 0.10% $ 3,518 28%
(0.58) $10.13 4.80% 0.95% 5.73% 0.19% $ 5,230 16%
(0.61) $10.24 12.64% 0.78% 6.09% -- % $ 7,610 27%
(0.57) $ 9.66 (2.23%) 0.83% 6.45% 0.02% $ 9,718 20%
(0.59) $10.46 9.60% 0.50% 5.66% 0.28% $ 10,872 17%
- -----------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
- --------------------------------------------------------------------------------
Combined Notes to Financial Statements
- --------------------------------------------------------------------------------
JUNE 30, 1998
(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 eight diversified and three non-diversified portfolios
(individually referred to as the "Fund", or collectively as the "Funds"). The
following Portfolios 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 Michigan Tax-Free Fund ("Michigan Tax-Free")+
The Monitor Ohio Tax-Free Fund ("Ohio Tax-Free")*
The Monitor Fixed Income Securities Fund ("Fixed Income")
The Monitor Intermediate Government Income Fund ("Government Income Fund")+
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") except for Short/Intermediate Fixed Income which only offers Trust
Shares. Investment Shares are identical in all respects to Trust Shares, except
that Investment Shares are sold pursuant to a distribution plan adopted in
accordance with Rule 12b-1 under the Act and are subject to a sales charge.
Beginning on April 1, 1998 the sales charge has been waived. The Distributor
can modify or terminate this voluntary waiver at any time at its sole
discretion. Trust shares are only offered in connection with the requirements
of fiduciary, advisory, agency and other similar accounts maintained by or on
behalf of customers of The Huntington National Bank or its affiliates or
correspondent banks. 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.
+ A merger of Huntington Bancshares Incorporated and First Michigan Bank
Corporation occurred on October 1, 1997. Effective March 27, 1998, FMB Money
Market and FMB Diversified Equity Fund were reorganized on a tax-free basis,
respectively, into Money Market and Growth; and effective April 3, 1998, FMB
Michigan Tax-Free Bond Fund and FMB Intermediate Government Income Fund were
reorganized on a tax-free basis, respectively, into Michigan Tax-Free and
Intermediate Government Income pursuant to an Agreement and Plan of
Reorganization dated as of February 1, 1998, by and between FMB Funds and The
Monitor Funds, which was approved by shareholders of The FMB Funds at a
meeting convened on March 24, 1998.
Information relating to FMB Michigan Tax-Free Bond Fund and FMB Intermediate
Government Income Fund is provided herein because these two funds were treated
as the accounting survivors in the reorganization.
At the time of the reorganization; FMB Michigan Tax-Free Bond Fund had net
assets of $35,807,092 and Michigan Tax- Free received net assets of
$35,807,092, FMB Intermediate Government Income Fund had net assets of
$119,115,527 and Intermediate Government Income received net assets of
$119,115,527, FMB Money Market Fund had net assets of $154,359,699 and Money
Market received net assets of $154,359,699, FMB Diversified Equity Fund had net
assets of $74,098,854 and Growth received net assets of $74,098,854. As a
result of the reorganization, holders of Institutional Shares received Trust
Shares, and holders of Consumer Service Shares received Investment Shares.
(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 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 at the bid price 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.
38
<PAGE>
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 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 and $22,284 has been reclassified from Income Equity's
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 June 30, 1998, Michigan Tax-Free, Fixed Income, Intermediate Government
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>
Michigan Tax-Free -- -- 70,561 -- -- $ 70,561
- ----------------------------------------------------------------------------------
Fixed Income -- -- 19,465 -- -- $ 19,465
- ----------------------------------------------------------------------------------
Intermediate Government
Income -- 341,004 1,366,912 -- -- $ 1,707,916
- ----------------------------------------------------------------------------------
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 $7,564 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 Trust's investment
adviser ("Huntington" or the
39
<PAGE>
"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 Michigan Tax-Free, Ohio Tax-Free, Fixed Income, Intermediate
Government Income, Mortgage Securities and Short/Intermediate Fixed Income:
0.50% of each Fund's average daily net assets. Prior to April 6, 1998, the
Adviser received 0.55% of the average daily net assets of FMB Michigan Tax-Free
Bond Fund and 0.45% of the average daily net assets of FMB Intermediate
Government Income Fund. The Adviser may voluntarily choose to waive a portion
of its fee. The Adviser waived 0.05% for Ohio Municipal Money Market, 0.07% for
Michigan Tax-Free, 0.05% for Intermediate Government Income, 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 entered into a sub-advisory agreement with Piper
Capital Management, Inc. (the "Sub-adviser"), pursuant to which the Sub-adviser
assisted the Adviser in the purchase, sale and exchange of the portfolio
investments for Mortgage Securities. The Sub-adviser received from the Adviser
an annual fee equal to 0.15% of the Fund's average daily net assets. This
agreement expired on April 24, 1998, on which date Huntington began performing
all advisory services for Mortgage Securities.
ADMINISTRATION FEE--Prior to January 12, 1998 SEI Fund Resources ("SFR") served
as administrator to the Trust under an Administration Agreement. On January 12,
1998, Huntington began serving as administrator to the Trust under a new
Administration Agreement, assuming responsibility for Michigan Tax-Free and
Intermediate Government Income on April 6, 1998. Prior to April 6, 1998, SFR
served as administrator to FMB Michigan Tax-Free Bond Fund and FMB Intermediate
Government Income Fund under an Administration Agreeement with FMB Funds, Inc.
In its role as administrator to the Trust, SFR received an annual fee of 0.11%
of each Fund's average net assets, paid monthly, for administrative services
performed SFR paid monthly to Huntington, under a Sub-Administration Agreement,
an annual fee of 0.05% of each Fund's average net assets for services
performed. In its role as administrator to FMB Michigan Tax-Free Bond Fund and
FMB Intermediate Government Income Fund, SFR received an annual fee of 0.20% of
each such Fund's average net assets paid monthly for administrative services
performed.
Huntington is entitled to receive an annual fee of 0.11% of each Fund's average
net assets, paid monthly, for services performed under the Trust's current
Administration Agreement. Huntington pays monthly to SFR, under a Sub-
Administration Agreement, an annual fee of 0.05% of each Fund's average net
assets for services performed.
DISTRIBUTION AGREEMENT--SEI Investments Distribution Co. ("SIDCO") acts as the
Trust's distributor pursuant to a Distribution Agreement. SEI Investment
Management Corporation, a wholly-owned subsidiary of SEI Investment Company, is
the owner of all beneficial interests in SFR. SIDCO is a wholly-owned
subsidiary of SEI Investment Company.
DISTRIBUTION PLAN--The Trust has 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 Trust's distributor (SIDCO) in
connection with the provision of distribution and administrative services with
respect to the Funds' Investment Shares. Prior to April 6, 1998, a distribution
plan for FMB Funds, Inc. (the "FMB Distribution Plan") provided for payments by
FMB Michigan Tax-Free Bond Fund and FMB Intermediate Government Income Fund to
be made to their distributor in connection with the provision of similar
services with respect to such Funds' Consumer Services Shares.
In accordance with each of the Distribution Plan and the FMB Distribution Plan,
the distributor enters into agreements with brokers and dealers relating to
distribution and/or administrative services with respect to the applicable
class of 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 such shares.
In connection with the provision of the distribution and administrative
services described above, the distributor pays brokers, dealers and
administrators (including The Huntington Investment Company) a fee based on the
amount of the applicable class of shares owned by their customers.
Under the Disribution Plan, for all of the Funds except Mortgage Securities
amounts paid by the distributor for services rendered with respect to a Fund's
Investment Shares will be paid by the Fund in an amount which may not exceed an
annual rate of 0.25% of the average daily net assets attributable to the Fund's
Investment Shares. Money Market, Ohio Municipal Money Market, and U.S. Treasury
Money Market have voluntarily limited fees to 0.10%. For Mortgage Securities,
the amounts that may be paid by the Fund may not exceed an annual rate of 0.50%
of the average daily net assets attributable to the Fund's Investment Shares.
Mortgage Securities has voluntarily limited fees to 0.25%.
Under the FMB Distribution Plan, amounts paid by the distributor for services
rendered with respect to a Fund's Consumer Service Shares were reimbursed by
the Fund in an amount not to exceed 0.35% of such Fund's average daily net
assets attributable to the Fund's Consumer Service Shares.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES, PORTFOLIO ACCOUNTING
AND CUSTODIAN FEES--Prior to January 12, 1998, SFR served as transfer and
dividend disbursing agent for the Trust. On January 12, 1998, State Street Bank
and Trust Co. began serving as transfer and dividend disbursing agent for the
Trust, assuming responsibility for Michigan Tax-Free and Intermediate
Government Income on April 6, 1998. Prior to April 6, 1998, SFR served as
transfer agent and dividend disbursing agent
40
<PAGE>
for FMB Michigan Tax-Free Bond Fund and FMB Intermediate Government Income
Fund. In each case, the fees payable for transfer agent and dividend disbursing
services are based on the size, type and number of accounts and transactions
made by shareholders.
Huntington provides certain accounting and recordkeeping services with respect
to each of the Funds' portfolios of investments, with the exception of Mortgage
Securities. American Data Services, Inc. ("ADS") provides these services with
respect to Mortgage Securities' portfolio of investments. Huntington receives
an annual fee based on the level of each Fund's average daily net assets. For
the six-month period ended June 30, 1998, Huntington received fees of $336,844.
ADS received $17,500 plus out-of-pocket expenses for services rendered for the
six-month period ended June 30, 1998.
Huntington also receives a fee for its services as the custodian of the Funds'
investments and other assets. Prior to April 6, 1998, Bankers Trust Company
("Bankers Trust") served as custodian of the investments and other assets of
FMB Michigan Tax-Free Bond Fund and FMB Intermediate Government Income Fund. In
each case, the fee is based on the level of each Fund's average daily net
assets. For the six-month period ended June 30, 1998, Huntington received fees
of $296,964.
For the six-month period ended June 30, 1998, certain Officers of the Trust
were Officers of SFR and SIDCO. Such Officers receive no compensation from the
Trust.
For the six-month period ended June 30, 1998, Huntington paid $29,952 in
commissions earned on sales of Investment Shares of the variable net asset
value funds to affiliate broker/dealers of the Funds.
(4) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
six month period ended June 30, 1998 were as follows (all numbers in
thousands):
INVESTMENT SECURITIES
---------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- ------------------------------------------------------------------------------
Purchases $20,817 $14,557 $3,506
Sales $32,282 $13,749 $1,374
- ------------------------------------------------------------------------------
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- ------------------------------------------------------------------------------
Purchases $29,578 -- $25,774
Sales $ 2,723 -- $ 8,728
- ------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS
---------------------------
INCOME OHIO
GROWTH EQUITY TAX-FREE
- ------------------------------------------------------------------------------
Purchases -- -- --
Sales -- -- --
- ------------------------------------------------------------------------------
SHORT/
INTERMEDIATE
FIXED MORTGAGE FIXED
INCOME SECURITIES INCOME
- ------------------------------------------------------------------------------
Purchases $44,745 $7,529 $45,826
Sales $67,734 $9,430 $58,255
- ------------------------------------------------------------------------------
Purchases and sales of investments, excluding short-term securities, for the
one month period ended June 30, 1998 were as follows (all numbers in
thousands):
INVESTMENT SECURITIES
---------------------
INTERMEDIATE
MICHIGAN GOVERNMENT
TAX-FREE INCOME
- ------------------------------------------------------------------------------
Purchases $485 --
Sales $993 --
- ------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS
---------------------------
INTERMEDIATE
MICHIGAN GOVERNMENT
TAX-FREE INCOME
- ------------------------------------------------------------------------------
Purchases -- --
Sales -- $639
- ------------------------------------------------------------------------------
41
<PAGE>
(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.
Michigan Tax-Free invests a substantial portion of its assets in obligations
and notes issued by the State of Michigan, political subdivisions thereof, and
agencies, instrumentalities, authorities of districts of both the State and its
political subdivisions. If there should be a default or other financial crisis
related to the State of Michigan, a Michigan municipality or an agency or
instrumentality of the State, the market value and marketability of the
Michigan municipal bonds in Michigan Tax-Free's portfolio and the interest
income could be adversely affected.
42
<PAGE>
- --------------------------------------------------------------------------------
Trustees Officers
- --------------------------------------------------------------------------------
David S. Schoedinger Mark Nagle
President and Chief Executive Officer
John M. Shary
Robert DellaCroce
William R. Wise Controller, Treasurer and Chief Financial Officer
Kathryn L. Stanton
Vice President and Secretary
Joseph O'Donnell
Vice President and Assistant Secretary
Todd Cipperman
Vice President and Assistant Secretary
Kevin P. Robins
Vice President and Assistant Secretary
Bradley J. Schram
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 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]
(800) 253-0412
