<PAGE>
- --------------------------------------------------------------------------------
HUNTINGTON FUNDS ANNUAL REPORT
- --------------------------------------------------------------------------------
December 31, 1998
Trust Shares and Investment Shares
. Huntington Money Market Fund
. Huntington Ohio Municipal Money Market Fund
. Huntington U.S. Treasury Money Market Fund
. Huntington Growth Fund
. Huntington Income Equity Fund
. Huntington Michigan Tax-Free Fund
. Huntington Ohio Tax-Free Fund
. Huntington Fixed Income Securities Fund
. Huntington Intermediate Government Income Fund
. Huntington Mortgage Securities Fund
. Huntington Short/Intermediate Fixed Income Securities Fund
[LOGO OF HUNTINGTON FUNDS APPEARS HERE]
<PAGE>
Message from the Investment Manager
Dear Shareholder,
On January 1, 1999, the name of The Monitor Funds family was officially
changed to "The Huntington Funds". We are pleased that our mutual fund family
can now share the solid, financial services reputation evoked by the name
"Huntington" for over one hundred thirty-three years. But while the funds'
names have changed, be assured that the name change had no tax implications for
shareholders, and the funds' investment objectives, managers and expense
structures remain unchanged.
In 1998, the U.S. economy proved to be quite resilient to the turmoil that
engulfed emerging markets and their economies. Although growth in the
manufacturing sector ground to a halt during the second half of the year in
response to cuts in exports to the Pacific Rim, the real GDP rose an estimated
3.8% for the year as a whole.
The economy's resilience was due primarily to two factors: the tight labor
market with the lowest jobless rate in 28 years; and the effect of huge capital
gains generated by the stock market which encouraged U.S. households to
outspend their sturdy income growth. We hope that the economic momentum will
continue into the first half of 1999. Many indicators point in that direction:
the Federal Reserve has been accommodating; interest rates are lower; and the
vibrant stock market would appear to support consumer spending.
We hope that you will take a moment to review the Management Discussion and
Analysis section of the report which follows this message. In this section, we
have included investment performance profiles and portfolio composition charts
for the Funds, as well as comments from the portfolio managers. We hope that
you will find this information useful as you plan for your 1999 investment
objectives. The complete financial statements for each of The Huntington Funds,
including their portfolios of investments, are on the succeeding pages.
On behalf of The Huntington Funds and The Huntington National Bank, I thank
you for investing with us. We are pleased that you have chosen us to help you
achieve your financial goals.
/s/ Richard W. Stenberg
Richard W. Stenberg
Senior Vice President,
Director, Private Financial Group
The Huntington National Bank
1
<PAGE>
Message from the Chief Investment Officer
Dear Shareholder:
I'm told that all that matters with mutual funds is distribution: that funds
are little more than commodities packaged for consumers, and that the key to
success in this business is simply getting the product on the "grocer's shelf"
and little else. Toothpaste is toothpaste, coffee is coffee, and mutual funds
are mutual funds.
I would very much like to think that we are different. From time to time in
these Annual Reports, I'll be spouting off on why I think that way. Consider
this my first spout.
What you'll get in these letters is straight talk about our Huntington Funds
from my vantage point as a fund manager: a position that I would not be
experiencing without you, our valued shareholder. For giving me that privilege,
I, along with the other Huntington Fund managers, thank you.
I enjoyed 1998. Sinatra would sing "It was a very good year." From a personal
perspective, it was the year that I turned 50. It was also the year I
celebrated my twentieth anniversary in this wonderful business. But, more to
the point, 1998 will be remembered as the year in which we were all
reintroduced to the dreaded "R" word: Risk. Risk reared its ugly head around
the globe, wreaking havoc in emerging economies, in currency markets and even
in well-heeled hedge funds. The pain was real and it spilled into our domestic
stock market with a vengeance, taking the broad-based index, the Standard &
Poor's 500, down by nearly 20% in the investment equivalent of the blink of an
eye, which was the brief span from mid-July to early October. As a result of
the turmoil, equity mutual funds experienced net outflows for the first time in
years, as investors sought safety in bond and money market funds.
What, you may ask, was so enjoyable about all that chaos? Plenty. Our two
equity mutual funds, The Huntington Growth Fund and The Huntington Income
Equity Fund, bucked the industry trend by experiencing no net outflows during
the late summer sell-off. Our bond funds, too, were benefited from investors'
Flight to Quality, as most achieved returns well above their peer group
averages, owing to their high credit quality. Lastly, The Huntington Funds were
recognized in the September, 1998 issue of Smart Money magazine. In short, 1998
will be remembered as a year in which quality counted for something.
Space does not permit me to mention each Huntington Fund's relative ranking
and accomplishments, since if I mention one (and believe me, I'd love to talk
about my own fund!) I must mention them all. Instead, I would invite you to
read the commentary on each fund as prepared by the portfolio managers. I think
that you will find their discussions informative and enlightening.
Yes, 1998 was a very good year for The Huntington Funds.
/s/ James M. Buskirk, CFA
James M. Buskirk, CFA
Senior Vice President and Chief Investment Officer
The Huntington National Bank
2
<PAGE>
Growth Fund As of 12/31/98
Management Discussion and Analysis
The Huntington Growth Fund is managed by two experienced investment
professionals, Phil Farrington and Jim Gibboney. Phil Farrington, Vice
President, is a graduate of Harvard University, and has over thirty years of
investment management experience. Jim Gibboney, Jr., CFA, Vice President, is a
graduate of The Ohio State University, with an M.B.A. from Xavier University.
Jim has over twenty year of investment management experience. Here are Phil's
and Jim's comments on The Huntington Growth Fund:
"The Huntington Growth Fund seeks to achieve long-term capital appreciation
by investing primarily in equity securities. The investment concentration of
the Fund is common stocks of medium to large size companies with attractive
potential for growth in earnings and dividends. The Huntington Growth Fund can
be an appropriate investment option for those with a longer-term investment
horizon seeking growth of principal.
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)............. $339.1
Net Asset Value (Trust Shares). $49.78
Number of Issues............... 61
Cash Reserves (%).............. 7.6%
</TABLE>
Our emphasis on large capitalization, blue chip growth stocks served us well
in 1998. Using stable growth stocks enabled us to side-step numerous debacles
which occurred as a result of the global economic crisis, and capture a
competitive return versus the average stock fund's performance.
The S&P 500 tends to distort our perceptions of the "market' because its
composition is dominated by the ten to twenty largest companies, including
stocks such as General Electric and Microsoft. The S&P 500 weighted total
return last year was 28.6% versus the average total return of the Fund of
18.55% (Trust Shares) and 18.25% (Investment Shares). While our Fund owns some
of these large stocks, we also own a wide variety of not-so-large stocks
including Walgreen, American Greetings and Lancaster Colony. Our focus is not
on size, but on quality and growth potential. We believe that, in time, stocks
with these qualities will reflect more appropriate valuations to the advantage
of our shareholders."
Five Largest Equity Holdings
As of 12/31/98
<TABLE>
<S> <C>
Home Depot....................... 6.1%
Shering-Plough................... 4.7%
Automatic Data Processing, Inc... 4.0%
Abbott Labs...................... 3.8%
Walgreen......................... 3.8%
</TABLE>
[COMPARISON CHART APPEARS HERE]
Monitor Monitor
Growth Fund, S&P 500 Growth Fund, S&P 500
Date Trust Class Composite Index Investment Class Composite Index
---- ----------- --------------- ---------------- -------------
- --
7/31/89 10,000 10,000
12/89 10,128 10,362
12/90 10,145 10,041
5/31/91 9,600 10,000
12/91 12,830 13,099 10,173 10,899
12/92 13,838 14,096 10,943 11,728
12/93 14,327 15,511 11,298 12,906
12/94 14,653 15,714 11,533 13,075
12/95 19,159 21,613 15,040 17,983
12/96 22,363 26,571 17,511 22,108
12/97 30,273 35,433 23,646 29,481
12/98 35,888 45,567 27,962 37,913
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales load of 4.00% ($10,000 investment minus $400 sales load =
$9,600). The Fund's performance assumes the reinvestment of all dividends
and distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index. During the period from April 6, 1998
through December 31, 1998, the current sales load of 4.00% was temporarily
waived.
+The S&P 500 is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
3
<PAGE>
Income Equity Fund As of 12/31/98
Management Discussion and Analysis
Jim Buskirk, CFA, portfolio manager of The Huntington Income Equity Fund, is
the Chief Investment Officer of the Trust Division of The Huntington National
Bank, and is responsible for its investment management activities. Jim has 20
years of expertise in his field, and has managed both personal and
institutional balanced portfolios. Jim received his bachelor's degree in
finance from The Ohio State University, and his M.B.A. from The University of
Oregon.
"Since its inception in 1989, The Huntington Income Equity Fund has been
positioned relatively conservatively, with an emphasis on stocks with high
dividends and modest dividend growth prospects. Our feeling was then and is now
that certain investors desire both participation in stock market advances as
well as some downside protection in major market sell-offs.
For nearly its entire history, the Fund has provided decent capital
appreciation, although usually at a less robust pace than the broad market
averages. Such was the case in last year's first half when the Fund returned
12.1% versus the 17.7% gain of the S&P 500. The Fund's first and second quarter
returns were buoyed by good results from its holdings in bank stocks, a sector
that appreciated steadily in price so that it
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)............. $250.9
Net Asset Value (Trust Shares). $40.85
30-Day SEC Yield (%)........... 2.68%
Number of Issues............... 48
Cash Reserves (%).............. 1.3%
</TABLE>
accounted for nearly 16% of total fund assets at the end of the second quarter.
Chase Manhattan, Fleet Financial and First Union were good performers during
this period.
In the third quarter, however, which was a period of severe market weakness,
the Fund's defensive bias enabled it to post a return of -6.3%, which, while
still painful, was far less severe than the 15% loss posted by the average
equity mutual fund. Then, in the fourth quarter's strong market advance, the
Fund once again provided solid total returns which, while meaningful, still
lagged the S&P 500. Our charge, therefore, remains as one of participation in
market advances, together with some avoidance of severe market corrections. For
the year ended December 31, 1998, the Fund's total return was 17.79% (Trust
Shares) and 17.56% (Investment Shares) compared to the S&P 500 Index return of
28.6%.
While we continue to believe that attempting to divine the near-term
direction of the market is little more than guesswork, we expect a continuation
of the same steady dividend increases that have benefited the Fund's
shareholders through the years. Dividend growth for the Fund has averaged 6%
per year over the past seven years. We will continue to manage the Fund with
the intent of continuing that favorable trend."
Five Largest Equity Holdings
As of 12/31/98
<TABLE>
<S> <C>
First Union...................... 4.7%
General Electric Co. ............ 4.4%
Xerox............................ 4.2%
Bristol-Myers Squibb............. 3.7%
Clorox........................... 3.7%
</TABLE>
[COMPARISON CHART APPEARS HERE]
Income Equity S&P 500 Income Equity, Income Equity, S&P 500
Fund, Composite Investment Fund Composite
Date Trust Class Index Shares Investment Class Index
---- ------------- --------- -------------- ---------------- ---------
7/31/89 10,000 10,000 9,450
12/89 10,151 10,362 9,592
12/90 9,252 10,041 8,742
12/91 11,398 13,099 10,771
12/92 12,249 14,096 11,575
12/93 13,578 15,511 12,831
12/94 13,331 15,714 12,598
12/95 17,232 21,613 16,284
12/96 20,141 26,571 19,032
5/97 9,450 10,000
12/97 25,375 35,433 10,904 10,904 11,552
12/98 29,890 45,567 12,818 12,818 14,856
<TABLE>
<CAPTION>
Total Annualized
Return Quarter One Year Annualized 3 Annualized 5 Inception to
As of 12-31-
98 Return Return Year Return Year Return Date
- -------------------------------------------------------------------------------
- -------------
<S> <C> <C> <C> <C> <C>
Trust 12.24% 17.79% 20.15% 17.09% 12.44%
- -------------------------------------------------------------------------------
- -------------
Investment 12.17% 17.56% N/A N/A 20.98%
- -------------------------------------------------------------------------------
- -------------
Investment, with load 6.00% 11.10% N/A N/A 16.85%
- -------------------------------------------------------------------------------
- -------------
</TABLE>
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
* The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index.
** Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales load of 5.50% ($10,000 investment minus $550 sales load =
$9,450). The Fund's performance assumes the reinvestment of all dividends
and distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index. During the period from April 6, 1998
through December 31, 1998, the current sales load of 5.50% was temporarily
waived.
+ The S&P 500 is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
4
<PAGE>
Michigan Tax-Free Fund As of 12/31/98
MANAGEMENT DISCUSSION AND ANALYSIS
Duane Carpenter, Assistant Vice President, is the portfolio manager of The
Huntington Michigan Tax-Free Fund. Duane is also the manager of The Huntington
Intermediate Government Income Fund and The Huntington Mortgage Securities
Fund. Duane is a graduate of Hope College in Holland, Michigan. Here are
Duane's comments on The Huntington Michigan Tax-Free Fund:
"For the year ended December 31, 1998, the total return of The Huntington
Michigan Tax-Free Fund was 5.18% (Trust Shares) and 4.91% (Investment Shares)
as compared to 5.85% for the Lehman Brothers 5-year Municipal Bond Index and
6.23% for the Lehman Brothers 7-year Municipal Bond Index.
We believe municipal bonds represent an excellent value in the current fixed
income market. While concern over global economic problems during 1998 caused a
flight to quality in the taxable market, the tax-exempt market did not
experience an equivalent decline in yields. Even though the average
intermediate tax-exempt bond yield is less than five percent, this yield
represents approximately 90% of the yield on a comparable taxable U.S. Treasury
note.
New purchase activity will be focused on high quality issues maturing between
ten and fifteen years, which offer some of the best value available in the
fixed income market. This strategy will also help us to maintain the average
maturity of the Fund between five and seven years."
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)............. $ 32.8
Net Asset Value (Trust Shares). $10.99
Average Maturity (Yrs.)........ 5.9
Number of Issues............... 68
30-Day SEC Yield (%)........... 3.33%
Cash Reserves (%).............. 2.0%
</TABLE>
[GRAPH APPEARS HERE]
Huntington Lehman Lehman
Michigan Huntington Brothers Brothers
Tax-Free Michigan 5-Year 7-Year
Fund, Tax-Free Fund, Municipal Municipal
Date Trust Shares Investment Shares Bond Index Bond Index
---- ------------ ----------------- ------------- -------------
12/91 10,000 9,525 10,000 10,000
12/92 10,710 10,189 10,762 10,805
12/93 11,730 11,159 11,702 11,932
12/94 11,530 10,969 11,520 11,601
12/95 12,945 12,315 12,861 13,245
12/96 13,443 12,766 13,406 13,826
12/97 14,409 13,649 14,262 14,889
12/98 15,155 14,319 15,096 15,816
<TABLE>
<CAPTION>
Total Annualized
Return Quarter 7 Month 6 Month One Year Annualized 3 Annualized 5 Inception to
As of 12-31-98 Return Return Return Return Year Return Year Return Date
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Trust 0.54% 3.31% 2.86% 5.18% 5.40% 5.26% 6.18%
- ---------------------------------------------------------------------------------------------------------------------
Investment 0.48% 3.14% 2.75% 4.91% 5.16% 5.11% 6.06%
- ---------------------------------------------------------------------------------------------------------------------
Investment, with load -4.27% 1.78% -2.11% -0.10% 3.46% 4.09% 5.33%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
For explanation of indices and other notes, please refer to page 49.
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
The performance of the graph begins on 12/31/91. Effective April 3, 1998, the
Michigan Tax-Free Fund became the successor by reorganization to the FMB
Michigan Tax-Free Bond Fund.
5
<PAGE>
Ohio Tax-Free Fund As of 12/31/98
Management Discussion and Analysis
Bill Doughty, Vice President, has over 25 years of investment management
experience and heads our fixed income trading area. Bill is a graduate of
Franklin University, and holds an M.B.A. from The University of Dayton. Bill
has managed The Huntington Ohio Tax-Free Fund since its inception in 1988 and
also manages The Huntington Money Market Fund, The Huntington U.S. Treasury
Money Market Fund and The Huntington Ohio Municipal Money Market Fund.
"The Huntington Ohio Tax-Free Fund offers clients an opportunity to invest in
securities which are exempt from Federal and Ohio income taxes with an average
maturity of four to seven years. The Fund may invest in obligations with a
remaining maturity of up to fifteen years. Under normal market conditions, the
Fund must invest at least 80% of its assets in Ohio tax-exempt securities which
are rated in the top four categories by an NRSRO(s), a nationally recognized
statistical rating organization, or if not rated, are of comparable quality.
The municipal market continued to lag the Treasury market when we saw a
flight to quality during the last half of 1998 as the Asian markets played
havoc with spread products. Since mid-December, the municipal market has
significantly outperformed Treasuries. This was the result of a variety of
factors including muted volatility in the municipal markets in both directions
and a very strong retail demand.
The performance of the Ohio Tax-Free Fund for 1998 was 5.16% (Trust Shares)
and 4.90% (Investment Shares) versus 4.44% for the Lipper Short Municipal Debt
Average, 5.35% for the Lipper Intermediate Municipal Debt Average, 5.12% for
the Lipper Ohio Intermediate Municipal Debt Average, and 5.85% for the Lehman
Brothers 5-Year General Obligation Index. The Fund's performance compares
favorably with its benchmarks overall due to the quality of the portfolio and
its shorter average life. The Fund was able to increase yield and enhance
returns by purchasing securities in the 12 to 15 year maturity range while
still maintaining a shorter average life. Looking forward, we will continue to
try and extend the average life of the Fund by purchasing securities in the 12
to 15 year range and take advantage of the steep yield curve in the municipal
market."
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)............. $ 64.7
Net Asset Value (Trust Shares). $21.83
30-Day SEC Yield (%)........... 3.24%
Number of Issues............... 168
Average Maturity (Yrs.)........ 5.6
Cash Reserves (%).............. 4.1%
</TABLE>
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Huntington OH Lipper Short Lipper OH
Tax-Free Fund, Lehman 5-Year Municipal Lipper Intermediate Intermediate
Date Trust Shares G.O. Index Debt Average Municipal Average Muni Average
---- ------------ ---------- ------------ ----------------- ------------
<S> <C> <C> <C> <C> <C>
10/31/88 10,000 10,000 10,000 10,000 10,000
12/88 10,058 9,974 10,057 10,029 9,975
12/89 10,799 10,845 10,753 10,868 10,709
12/90 11,478 11,632 11,435 11,581 11,382
12/91 12,517 12,945 12,280 12,796 12,388
12/92 13,271 13,899 12,986 13,815 13,219
12/93 14,343 15,088 13,640 15,236 14,519
12/94 13,975 14,879 13,676 14,710 13,952
12/95 15,561 16,608 14,659 16,650 15,694
12/96 16,102 17,376 15,209 17,273 16,259
12/97 17,086 18,502 15,913 18,515 17,349
12/98 17,968 19,584 16,620 19,505 18,238
</TABLE>
<TABLE>
<CAPTION>
Total Annualized Annualized
Return Quarter One Year Annualized 3 Annualized 5 10 Year Inception to
As of 12/31/98 Return Return Year Return Year Return Return Date
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Trust 0.64% 5.16% 4.91% 4.61% 5.97% 5.91%
</TABLE>
6
<PAGE>
Ohio Tax-Free Fund (continued) As of 12/31/98
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman
Huntington Ohio Lipper Short Brothers
Tax-Free Fund, Municipal 5-Year Lipper Intermediate Lipper OH Intermediate
Date Investment Shares Debt Average G.O. Index Municipal Debt Average Municipal Debt Average
---- ----------------- ------------ ----------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C>
5/31/91 9,800 10,000 10,000 10,000 10,000
12/91 10,317 10,705 10,434 10,622 10,524
12/92 10,909 11,494 11,034 11,468 11,230
12/93 11,758 12,476 11,590 12,647 12,334
12/94 11,425 12,304 11,620 12,211 11,853
12/95 12,693 13,734 12,455 13,821 13,332
12/96 13,099 14,369 12,922 14,338 13,812
12/97 13,869 15,300 13,521 15,369 14,739
12/98 14,549 16,195 14,121 16,192 15,494
</TABLE>
<TABLE>
<CAPTION>
Total Annualized
Return Quarter One Year Annualized 3 Annualized 5 Inception to
As of 12-31-98 Return Return Year Return Year Return Date
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment 0.57% 4.90% 4.65% 4.35% 5.36%
- --------------------------------------------------------------------------------------------
Investment, with load 1.45% 2.81% 3.96% 3.93% 5.08%
- --------------------------------------------------------------------------------------------
</TABLE>
For explanation of indices and other notes, please refer to page 49.
Past performance is not predictive of
future performance. Your investment
return and principal value will
fluctuate so that when shares are
redeemed, they may be worth more or
less than their original cost. Mutual
funds are not obligations of or
guaranteed by any bank and are not
federally insured.
7
<PAGE>
Fixed Income Securities Fund As of 12/31/98
Management Discussion and Analysis
Steve Geis, CFA, Vice President, is the senior fixed income manager of the
Trust Division, and manages both The Huntington Fixed Income Securities Fund
and The Huntington Short/Intermediate Fixed Income Securities Fund. Steve, a
graduate of The College of Wooster, received his M.B.A. from The University of
Dayton and his J.D. from Capital University. Here are Steve's comments on The
Huntington Fixed Income Securities Fund:
"Interest rates rose modestly during the last three months of the year, which
had a negative impact on fourth quarter returns. However, rates across all
maturities fell approximately 100 basis points during all of 1998 resulting in
fund performance above our initial expectations. As has been
the case historically, returns were in line with many of the standard bond fund
benchmarks. The Huntington Fixed Income Securities Fund ended the year with a
total return of 9.18% (Trust Shares) and 8.93% (Investment Shares) compared
with 9.47% for the Lehman Brothers Government/Corporate Bond Index.
The yield curve is flat, especially in the three-month to ten-year maturity
spectrum. This situation provides less of an inducement to extend maturities.
Corporate spreads, which widened significantly relative to Treasuries earlier
in the year, remained so, and we took advantage of those spreads to make
several purchases. These issues added to an already well-diversified
portfolio."
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)................. $170.0
Net Asset Value (Trust Shares)..... $21.78
30-Day SEC Yield (%)............... 4.94%
Number of Issues................... 140
Average Maturity (Yrs.)............ 8.9
Cash Reserves (%).................. 0.6%
</TABLE>
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Huntington Lehman Huntington Lehmans
Fixed Income Brothers Fixed Income Brothers
Securities Government/ Lipper Intmdt. Securities Fund Government/ Lipper Intmdt.
Income Fund, Corporate Invest.-Grade Investment Corporate Invest.-Grade
Date Trust Shares Bond Index Debt Fund Avg. Shares Bond Index Debt Fund Avg.
---- ------------ ----------- -------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
7/31/89 10,000 10,000 10,000
12/89 10,158 10,245 10,157
12/90 10,919 11,094 10,780
5/31/91 9,800 10,000 10,000
12/91 12,680 12,883 12,522 10,944 11,127 11,063
12/92 13,508 13,858 13,453 11,626 11,969 11,886
12/93 14,902 15,391 14,829 12,796 13,293 13,102
12/94 14,214 14,851 14,307 12,172 12,827 12,641
12/95 16,765 17,708 16,730 14,318 15,295 14,781
12/96 17,194 18,223 17,275 14,650 15,740 15,263
12/97 18,712 20,000 18,761 15,901 17,274 16,575
12/98 20,430 21,894 20,121 17,321 18,910 17,777
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Total Return Quarter One Year Annualized Annualized Annualized
as of 12-31-98 Return Return 3-Year Return 5-Year Return Inception to Date
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Trust 0.55% 9.18% 6.81% 6.51% 7.99%
Investment 0.60% 8.93% 6.55% 6.24% 7.77%
Investment, with load 2.59% 6.73% 5.84% 5.81% 7.49%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
For explanation of indices and other notes, please refer to page 49.
Past performance is not predictive of
future performance. Your investment
return and principal value will
fluctuate so that when shares are
redeemed, they may be worth more or
less than their original cost. Mutual
funds are not obligations of or
guaranteed by any bank and are not
federally insured.
8
<PAGE>
Intermediate Government Income Fund As of 12/31/98
Management Discussion and Analysis
Duane Carpenter, Assistant Vice President, is the portfolio manager for The
Huntington Intermediate Government Income Fund. Duane also manages The
Huntington Michigan Tax-Free Fund and The Huntington Mortgage Securities Fund.
Duane is a graduate of Hope College in Holland, Michigan. Here are Duane's
comments on The Huntington Intermediate Government Income Fund:
"The Fund performed very well in 1998, with a total return of 8.00% (Trust
Shares) and 7.72% (Investment Shares), compared to 8.42% for its benchmark
index, the Lehman Brothers Intermediate Government/Corporate Bond Index. Many
fixed income funds faced large losses during the second half of the year, when
concerns over the Asian market problems and a possible slowdown in the domestic
economy resulted in a flight to quality in fixed income markets. Funds that had
been reaching for additional yield through high risk, low credit quality issues
saw their market values decline significantly.
Our strategy of focusing on high quality, intermediate term government and
agency issues provided a high level of income, along with an increase in market
value resulting from the lower U.S. Treasury rates. We will focus our future
purchase activity on selected mortgage-backed issues with expected average
lives between three and seven years. Yields on these issues remain at
historically wide spreads relative to U.S. Treasuries, and we believe that they
offer excellent value in the current interest rate environment."
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)............. $112.3
Net Asset Value (Trust Shares). $10.42
30-Day SEC Yield (%)........... 4.3%
Number of Issues............... 60
Average Maturity (Yrs.)........ 4.6
Cash Reserves.................. 3.1%
</TABLE>
[GRAPH APPEARS HERE]
Monitor Intermediate Moniter Intermediate Lehman Intermediate
Income Fund, Gov't Income Fund, Gov't Corporate Goverment/
Date Trust Class Investment Class Bond Index
---- -------------------- --------------------- --------------------
12/31/91 10,000 9,525 10,000
12/92 10,656 10,134 10,717
12/93 11,584 11,017 11,658
12/94 11,318 10,764 11,433
12/95 12,782 12,156 13,183
12/96 13,273 12,599 13,719
12/97 14,271 13,512 14,798
12/98 15,413 14,555 16,044
<TABLE>
<CAPTION>
Total Annualized
Return Quarter 7 Month 6 Month One Year Annualized 3 Annualized 5 Inception to
As of 12-31-98 Return Return Return Return Year Return Year Return Date
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Trust 0.19% 5.34% 3.33% 8.00% 6.44% 5.88% 6.57%
- ---------------------------------------------------------------------------------------------------------------------
Investment 0.10% 5.06% 3.31% 7.72% 6.19% 5.73% 6.44%
- ---------------------------------------------------------------------------------------------------------------------
Investment, with load -4.69% 0.08% -1.63% 2.59% 4.49% 4.71% 5.71%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
For explanation of indices and other notes, please refer to page 49.
Past performance is not predictive of future performance. Your investment
return and principal value will fluctuate so that when shares are redeemed,
they may be worth or less than their original cost. Mutual funds are not
obligations of or guaranteed by any bank and are not federally insured.
The performance in the graph begins on 12/31/91. Effective April 3, 1998, the
Intermediate Government Income Fund became the successor by reorganization to
the FMB Intermediate Government Income Fund.
9
<PAGE>
Mortgage Securities Fund As of 12/31/98
Management Discussion and Analysis
The Huntington Mortgage Securities Fund is managed by Duane Carpenter,
Assistant Vice President. Duane is also the portfolio manager for The
Huntington Michigan Tax-Free Fund and The Huntington Intermediate Government
Income Fund. Duane is a graduate of Hope College in Holland, Michigan. Here are
Duane's comments on The Huntington Mortgage Securities Fund:
"The Huntington Mortgage Securities Fund had a total return of 6.41% (Trust
Shares) and 6.09% (Investment Shares) for the year ended December 31, 1998.
This compares with 6.97% for the Lehman Brothers Mortgage-Backed Index.
As U.S. Treasury rates declined during the second half of 1998, expectations
for another wave of homeowner refinancing activity increased. This level of
anticipation resulted in a limited increase in value of mortgage-backed
securities when compared to Treasuries, since any increase in value of current
mortgages would be partially offset by a declining average maturity of these
issues.
Our strategy of holding securities with rates of between 6.5% and 7.0% has
helped to limit the amount of prepaid principal that we received during the
year. This prevented the Fund from having to replace a large portion of the
portfolio in a lower rate environment. We will focus our future purchase
activity on selected current coupon issues with expected average lives of
between three and seven years. Yields on these issues remain at historically
wide spreads relative to U.S. Treasuries, and we believe offer excellent value
in the current interest rate environment."
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil)..................... $36.1
Net Asset Value (Trust Shares)......... $8.25
30-Day SEC Yield (%)................... 6.43%
Number of Issues....................... 36
Average Duration (Yrs.)................ 25
Cash Reserves (%)...................... 5.8%
</TABLE>
[GRAPH APPEARS HERE]
Monitor Mortgage Monitor Mortgage Lipper U.S.
Securities Fund, Securities Fund, Lehman Mortgage Mortgage
Date Trust Shares Investment Class Index Funds Average
---- ---------------- ---------------- --------------- -------------
6/30/92 10,000 9,800 10,000 10,000
12/92 10,746 10,519 10,372 10,370
12/93 12,131 11,846 11,081 11,136
12/94 9,148 8,917 10,903 10,668
12/95 11,993 11,693 12,735 12,419
12/96 12,779 12,424 13,417 12,887
12/97 13,900 13,485 14,689 13,988
12/98 14,791 14,306 15,713 14,838
<TABLE>
<CAPTION>
Total Annualized
Return Quarter One Year Annualized 3 Annualized 5 Inception to
As of 12-31-98 Return Return Year Return Year Return Date
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Trust 0.48% 6.41% 7.24% 4.05% 6.39%
- --------------------------------------------------------------------------------------------
Investment 0.28% 6.09% 6.96% 3.85% 6.18%
- --------------------------------------------------------------------------------------------
Investment, with load -1.72% 3.95% 6.22% 3.44% 5.86%
- --------------------------------------------------------------------------------------------
</TABLE>
For explanation of indices and other notes, please refer to page 49.
Past performance is not predictive
of future performance. Your
investment return and principal
value will fluctuate so that when
shares are redeemed, they may be
worth more or less than their
original cost. Mutual funds are not
obligations of or guaranteed by any
bank and are not federally insured.
10
<PAGE>
Short/Intermediate Fixed Income Securities Fund As of 12/31/98
Management Discussion & Analysis
Steve Geis, CFA, Vice President, the senior fixed income manager of the Trust
Division, and manages both The Huntington Fixed Income Securities Fund and The
Huntington Short/Intermediate Fixed Income Securities Fund. Steve, a graduate
of The College of Wooster, received his M.B.A. from The University of Dayton
and his J.D. from Capital University. Here are Steve's comments on The
Huntington Short/Intermediate Fixed Income Securities Fund:
"For the fiscal year ended December 31, 1998, the total return of The
Huntington Short/Intermediate Fixed Income Securities Fund was 7.13% (Trust
Shares). This compares with 8.42% for the Lehman Brothers Intermediate
Government/Corporate Bond Index and 7.64% for the Merrill Lynch 1-5 year
Government/Corporate Bond Index.
Interest rates rose modestly during the last three months of the year which
had a negative impact on fourth quarter returns. However, the rates across all
maturities fell approximately 100 basis points during all of 1998 resulting in
performance above our initial expectations. As has been the case historically,
our returns were in line with many of the standard bond fund benchmarks."
Portfolio Profile
As of 12/31/98
<TABLE>
<S> <C>
Net Assets ($ mil).................... $127.7
Net Asset Value (Trust Shares)........ $20.13
30-Day SEC Yield (%).................. 4.49%
Number of Issues...................... 98
Average Maturity (Yrs.)............... 2.6
Cash Reserves (%)..................... 0.5%
</TABLE>
[GRAPH APPEARS HERE]
Monitor Lehman Merrill Merrill 1-5 Lipper
Short/Intmdt Intermediate 1-5 Year U.S. Year U.S. Short/Intmdt
Income Fund, Gov't/Corp Corp/Gov't Treasury Invest-Grade
Date Trust Shares Index Index Index Debt
---- ------------ ------------ ------------- ----------- ------------
7/31/89 10,000 10,000 10,000 10,000 10,000
12/89 10,253 10,251 10,266 10,259 10,227
12/90 11,108 11,192 11,259 11,258 11,044
12/91 12,621 12,828 12,724 12,708 12,625
12/92 13,408 13,747 13,601 13,562 13,457
12/93 14,404 14,954 14,571 14,493 14,559
12/94 14,263 14,666 14,491 14,388 14,241
12/95 16,090 16,911 16,367 16,234 16,098
12/96 16,746 17,598 17,122 16,959 16,762
12/97 17,845 18,983 18,348 18,165 17,875
12/98 19,117 20,581 19,749 19,571 19,054
- -------------------------------------------------------------------------------
Total
Return Annualized
As of Quarter One-Year Annualized Annualized Inception
12-31-98 Return Return 3-Year Return 3-Year Return to Date
- -------- ------------ ------------ ------------- ------------- ------------
Trust 0.28% 7.13% 5.91% 5.82% 7.21%
- -------------------------------------------------------------------------------
For explanation of indices and other notes, please refer to page 49.
Past performance is not predictive
of future performance. Your
investment return and principal
value will fluctuate so that when
shares are redeemed, they may be
worth more or less than their
original cost. Mutual funds are not
obligations of or guaranteed by any
bank and are not federally insured.
11
<PAGE>
Portfolio of Investments
-------------------------------
Huntington Money Market Fund December 31, 1998
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
(a) Commercial Paper - 95.2%
- -------------------------------------------------------------------------------
Agriculture - 2.6%
$15,000 Cargill Inc., 5.020%,
03/05/99 $14,868
10,000 Cargill Inc., 5.070%,
02/03/99 9,953
- -------------------------------------------------------------------------------
24,821
- -------------------------------------------------------------------------------
Automotive - 1.5%
15,000 Daimler Benz N.A.,
5.130%, 02/16/99 14,902
- -------------------------------------------------------------------------------
Banking - 1.0%
10,000 National City Credit
Corp., 5.010%,
03/03/99 9,915
- -------------------------------------------------------------------------------
Banking & Finance - 6.7%
15,000 Goldman, Sachs & Co.,
5.130%, 02/22/99 14,889
15,000 Goldman, Sachs & Co.,
5.150%, 02/11/99 14,912
15,000 Morgan Stanley Dean
Witter Corp., 5.250%,
01/20/99 14,958
10,000 Xerox Credit Corp.,
4.800%, 03/04/99 9,917
10,000 Xerox Credit Corp.,
5.000%, 01/07/99 9,992
- -------------------------------------------------------------------------------
64,668
- -------------------------------------------------------------------------------
Chemicals - 4.1%
15,000 Air Products &
Chemicals, Inc.,
5.030%, 01/14/99 14,973
10,000 du Pont (E.I.) de
Nemours & Co.,
5.020%, 03/09/99 9,906
15,000 du Pont (E.I.) de
Nemours & Co.,
4.980%, 03/02/99 14,876
- -------------------------------------------------------------------------------
39,755
- -------------------------------------------------------------------------------
Consumer Products - 4.1%
20,000 Fortune Brands, Inc.,
5.150%, 01/26/99 19,928
20,000 Snap On, Inc., 6.010%,
01/04/99 19,990
- -------------------------------------------------------------------------------
39,918
- -------------------------------------------------------------------------------
Diversified Operations - 5.2%
15,000 Minnesota Mining &
Manufacturing,
5.050%, 01/26/99 14,900
10,000 Minnesota Mining &
Manufacturing,
5.080%, 02/17/99 9,965
10,000 Motorola, Inc.,
5.130%, 01/29/99 9,960
15,000 Motorola, Inc.,
5.030%, 02/25/99 14,885
- -------------------------------------------------------------------------------
49,710
- -------------------------------------------------------------------------------
Electronics - 3.6%
15,000 Emerson Electric Co.,
5.050%, 02/08/99 14,920
20,000 Siemens Capital Corp.,
5.050%, 02/01/99 19,913
- -------------------------------------------------------------------------------
34,833
- -------------------------------------------------------------------------------
Entertainment - 2.6%
15,000 The Walt Disney Co.,
5.000%, 01/05/99 14,992
10,000 The Walt Disney Co.,
5.120%, 01/22/99 9,970
- -------------------------------------------------------------------------------
24,962
- -------------------------------------------------------------------------------
Finance Commercial - 4.1%
10,000 Gereral Electric
Credit Corp, 5.130%,
02/10/99(b) 10,000
20,000 IBM Credit Corp.,
5.000%, 01/15/99 19,961
10,000 IBM Credit Corp.,
5.100%, 01/28/99 9,962
- -------------------------------------------------------------------------------
39,923
- -------------------------------------------------------------------------------
Food & Beverage - 8.8%
15,000 Anheuser Busch Co.,
5.100%, 01/21/99(f) 14,957
11,150 Anheuser Busch Co.,
5.200%, 02/05/99 11,094
15,000 Coca-Cola, Inc.,
5.080%, 01/25/99 14,949
10,000 Coca-Cola, Inc.,
4.920%, 01/08/99 9,990
5,000 Coca-Cola, Inc.,
5.020%, 01/11/99 4,993
15,000 Pepsi Cola, Co.,
5.170%, 01/06/99 14,989
15,000 Pepsi Cola, Co.,
5.100%, 01/08/99 14,985
- -------------------------------------------------------------------------------
85,957
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Commercial Paper (Continued)
- -------------------------------------------------------------------------------
Food Products - 12.8%
$10,500 Campbell Soup Co.,
5.000%, 01/04/99 $10,496
15,000 Campbell Soup Co.,
5.100%, 01/12/99 14,977
5,000 Golden Peanut Co.,
5.000%, 01/11/99 4,993
5,765 Golden Peanut Co.,
4.950%, 01/22/99 5,748
8,000 Golden Peanut Co.,
5.050%, 03/17/99 7,916
20,000 Heinz H.J. Co.,
5.050%, 01/07/99 19,983
11,900 Heinz H.J. Co.,
5.220%, 01/19/99 11,869
20,000 Hershey Foods, Inc.,
5.060%, 01/13/99 19,966
16,800 Kellogg, Co., 5.170%,
01/12/99 16,773
12,000 Kellogg, Co., 5.000%,
03/15/99 11,878
- -------------------------------------------------------------------------------
124,599
- -------------------------------------------------------------------------------
Funding Corp - 2.0%
10,000 New Center Asset
Trust, 5.300%,
01/19/99 9,973
10,000 New Center Asset
Trust, 5.000%,
02/23/99 9,926
- -------------------------------------------------------------------------------
19,899
- -------------------------------------------------------------------------------
Household Products & Housewares - 2.6%
15,000 Procter & Gamble Co.,
5.100%, 01/28/99 14,943
10,000 Procter & Gamble Co.,
5.070%, 02/26/99 9,921
- -------------------------------------------------------------------------------
24,864
- -------------------------------------------------------------------------------
Insurance - 6.6%
13,000 AI Credit Corp.,
5.000%, 01/20/99 12,966
15,000 AI Credit Corp.,
5.050%, 01/25/99 14,949
15,000 Met Life Funding
Corp., 5.250%,
01/13/99 14,974
10,000 Met Life Funding
Corp., 5.250%,
01/14/99 9,981
11,360 USAA Capital Corp.,
4.980%, 01/29/99 11,316
- -------------------------------------------------------------------------------
64,186
- -------------------------------------------------------------------------------
Lumber - 1.8%
18,000 Weyerhauser, Co.,
5.200%, 01/25/99 17,938
- -------------------------------------------------------------------------------
Metals & Mining - 2.5%
8,912 Aluminum Company
America, 5.220%,
01/08/99 8,903
15,000 Aluminum Company
America, 5.200%,
01/15/99 14,970
- -------------------------------------------------------------------------------
23,873
- -------------------------------------------------------------------------------
Oil & Gas - 1.5%
15,000 Amoco Co., 5.050%,
01/26/99 14,947
- -------------------------------------------------------------------------------
Pharmaceuticals - 3.7%
16,500 Schering-Plough,
Corp., 5.200%,
01/20/99 16,455
10,000 Schering-Plough,
Corp., 5.080%,
02/12/99 9,941
10,000 SmithKline Beecham,
5.050%, 01/19/99 9,975
- -------------------------------------------------------------------------------
36,371
- -------------------------------------------------------------------------------
Printing & Publishing - 6.0%
15,000 Gannett, Co., 5.050%,
01/15/99(f) 14,971
8,000 McGraw-Hill Companies,
Inc., 5.180%,
01/27/99 7,970
8,500 McGraw-Hill Companies,
Inc., 5.000%,
02/24/99 8,436
10,000 Times Mirror, Co.,
5.180%, 01/20/99(f) 9,973
17,000 Times Mirror, Co.,
5.130%, 02/09/99(f) 16,906
- -------------------------------------------------------------------------------
58,256
- -------------------------------------------------------------------------------
Sovereign Governments - 2.0%
10,000 Canadian Wheat Board,
5.050%, 01/21/99 9,972
10,000 Canadian Wheat Board,
5.050%, 01/27/99 9,964
- --------------------------------------------------------------------------------
19,936
- --------------------------------------------------------------------------------
Telecommunications - 4.8%
17,130 Ameritech, Corp.,
5.000%, 01/13/99 17,101
15,000 BellSouth
Telecommunications,
Inc., 5.070%,
02/18/99 14,899
15,000 Lucent Technologies,
4.900%, 01/06/99 14,990
- --------------------------------------------------------------------------------
46,990
- --------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
-------------------------------------
Huntington Money Market Fund (Continued)
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Commercial Paper (Continued)
- -------------------------------------------------------------------------------
Utilities - 4.6%
$10,000 Dayton Power & Light,
5.200%, 01/19/99 $ 9,974
5,000 Dayton Power & Light,
5.300%, 03/08/99 4,954
10,000 Duke Energy Corp.,
5.170%, 02/12/99 9,940
20,000 Southern California,
Inc., 5.150%,
02/25/99 19,843
- -------------------------------------------------------------------------------
44,711
- -------------------------------------------------------------------------------
Total Commercial Paper (at
amortized cost) 925,934
- -------------------------------------------------------------------------------
Repurchase Agreements - 5.2%
35,000 Morgan Stanley & Co., Inc., 4.650%, dated 12/31/98, due
01/04/99, repurchase price $35,018,083 (collateralized
by FHLB obligations, total par value $35,730,000,
5.430%, 12/21/01, total market value $35,758,505) 35,000
- -------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
Repurchase Agreements (Continued)
- -------------------------------------------------------------------------------
<C> <S> <C>
$15,851 Morgan Stanley & Co., Inc., 4.620%, dated 12/31/98, due
01/04/99, repurchase price $15,859,437 (collateralized
by U.S. Treasury obligations, total par value
$10,275,000, 12.000%, 08/15/13, total market value
$16,141,383) 15,851
- -------------------------------------------------------------------------------
Total Repurchase Agreements 50,851
- -------------------------------------------------------------------------------
Total Investments (at amortized
cost) $976,785
- -------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
-----------------
Huntington Ohio Municipal Money Market Fund December 31,
1998
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio - 100.5%
- -------------------------------------------------------------------------------
$1,125 Allen County, BANs, 4.050%, 04/13/99 $1,126
- -------------------------------------------------------------------------------
1,405 American Municipal Power, Inc., BANs, 3.400%, 12/03/99 1,405
- -------------------------------------------------------------------------------
1,340 Ashland County, IDR, Weekly VRDNs, Landover Properties,
Banc One LOC, 4.000%, 11/01/04 1,340
- -------------------------------------------------------------------------------
1,300 Ashland, Sanitary Sewer System Improvement, GO, 3.960%,
03/18/99 1,301
- -------------------------------------------------------------------------------
1,300 Brunswick, BANs, 4.100%, 04/01/99 1,301
- -------------------------------------------------------------------------------
1,500 Butler County, LTD, BANs, 4.000%, 03/19/99 1,501
- -------------------------------------------------------------------------------
1,500 Butler County, LTD, BANs, 3.550%, 10/21/99 1,506
- -------------------------------------------------------------------------------
1,895 Centerville, Weekly VRDNs, Betheny Village, PNC Bank LOC,
4.050%, 11/01/13 1,895
- -------------------------------------------------------------------------------
6,300 Cincinnati Hamilton, Daily VRDNs, Kenwood Project,
Kredietbank N.V. LOC, 5.000%, 09/01/25 6,300
- -------------------------------------------------------------------------------
5,000 Cleveland Heights, CSD, AMBAC, RB, 4.750%, 06/01/99 5,036
- -------------------------------------------------------------------------------
4,500 Columbus, Electric System Revenue, Monthly VRDNs, Union
Bank of Switzerland LOC, 3.300%, 09/01/09 4,500
- -------------------------------------------------------------------------------
8,500 Columbus, SSRB, Weekly VRDNs, Series 1994, 3.900%, 06/01/11 8,500
- -------------------------------------------------------------------------------
1,500 Columbus, Weekly VRDNs, Westdeutsche Landersbank LOC,
3.850%, 06/01/16 1,500
- -------------------------------------------------------------------------------
14,500 Columbus, Weekly VRDNs, GO, Westdeutsche Landersbank LOC,
3.850%, 12/01/17 14,500
- -------------------------------------------------------------------------------
2,000 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic
Foundation, Chase Manhattan Bank LOC, 4.100%, 01/01/24 2,000
- -------------------------------------------------------------------------------
585 Cuyahoga County, Cleveland Neighborhood, RB, Key Bank LOC,
3.400%, 06/01/99 (e) 585
- -------------------------------------------------------------------------------
6,200 Cuyahoga County, Daily VRDNs, Cleveland Orchestra, Bank of
America LOC, 5.000%, 04/01/28 6,200
- -------------------------------------------------------------------------------
1,900 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic,
Series 1996A, Morgan Guaranty LOC, 5.000%, 01/01/26 1,900
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio - (Continued)
- -------------------------------------------------------------------------------
$2,000 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic,
Series B, 4.100%, 01/01/26 $2,000
- -------------------------------------------------------------------------------
2,000 Cuyahoga County, HRB, Weekly VRDNs, Cleveland Clinic,
Series B, 4.050%, 01/01/26 2,000
- -------------------------------------------------------------------------------
1,400 Cuyahoga County, IDA, Weekly VRDNs, Allen Group Inc.,
Dresdner Bank AG, NY LOC, 3.850%, 12/01/15 1,400
- -------------------------------------------------------------------------------
975 Cuyahoga County, IDR, Fogg Centax 11 Project, Equitable
Federal LOC, 3.850%, 07/01/99 (e) 975
- -------------------------------------------------------------------------------
1,600 Cuyahoga County, IDR, Weekly VRDNs, Edgecomb Metals, Banque
Nationale De Paris LOC, 4.000%, 09/01/09 1,600
- -------------------------------------------------------------------------------
2,000 Dayton, BANs, 3.650%, 06/15/99 2,002
- -------------------------------------------------------------------------------
1,500 Dublin , CSD, GO, 3.900%, 04/14/99 1,502
- -------------------------------------------------------------------------------
1,800 Dover, BANs, 3.990%, 09/09/99 1,803
- -------------------------------------------------------------------------------
1,600 Elyria, BANs, 4.050%, 06/03/99 1,602
- -------------------------------------------------------------------------------
1,000 Erie County, BANs, 4.250%, 06/01/99 1,002
- -------------------------------------------------------------------------------
1,300 Erie County, BANs, 3.375%, 11/18/99 1,304
- -------------------------------------------------------------------------------
2,000 Euclid, BANs, 3.220%, 12/30/99 2,003
- -------------------------------------------------------------------------------
1,242 Euclid, CSD, BANs, 3.990%, 06/17/99 1,243
- -------------------------------------------------------------------------------
1,600 Evendale, IDR, Weekly VRDNs, Shaver Real Estate, ABN AMRO
Bank LOC, 3.750%, 09/01/15 1,600
- -------------------------------------------------------------------------------
1,100 Fairborn, BANs, 3.750%, 03/23/99 1,100
- -------------------------------------------------------------------------------
1,600 Fairfield, BANs, 3.80%, 08/27/99 1,602
- -------------------------------------------------------------------------------
4,000 Franklin County, HRB, Weekly VRDNs, Series 1996, U.S.
Health, Morgan Guaranty Trust LOC, 4.050%, 12/01/21 4,000
- -------------------------------------------------------------------------------
1,100 Franklin County, HRB, Weekly VRDNs, Childrens Hospital,
Banc One SPA, 4.150%, 12/01/14 1,100
- -------------------------------------------------------------------------------
3,500 Franklin County, HRB, Weekly VRDNs, Franciscan Sisters,
Chase Manhattan Bank LOC, 4.900%, 07/01/15 3,500
- -------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
-----------------
Huntington Ohio Municipal Money Market Fund (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio (Continued)
- -------------------------------------------------------------------------------
$2,500 Franklin County, HRB, Weekly VRDNs, Holy Cross Health,
Morgan Guaranty Trust LOC, 4.000%, 06/01/16 $2,500
- -------------------------------------------------------------------------------
750 Franklin County, IDR, Weekly VRDNs, Columbus College Art &
Design, Bank One LOC, 4.050%, 10/01/11 750
- -------------------------------------------------------------------------------
1,400 Franklin County, Weekly VRDNs, Dominican Sisters, Fifth
Third Bank LOC, 4.050%, 12/01/16 1,400
- -------------------------------------------------------------------------------
2,500 Franklin County, HRB, Series 1998, Weekly VRDNs, 4.100%,
12/01/28 2,500
- -------------------------------------------------------------------------------
2,500 Gahanna Jefferson, CSD, BANs, 4.000%, 04/15/99 2,507
- -------------------------------------------------------------------------------
1,100 Hamilton County, Monthly VRDNs, Automated Data Processing
Co., 3.500%, 10/15/12 1,100
- -------------------------------------------------------------------------------
2,900 Hamilton County, Health Care System, Weekly VRDNs, West
Park, Fifth Third Bank LOC, 4.000%, 07/01/17 2,900
- -------------------------------------------------------------------------------
2,000 Hamilton County, HRB, Weekly VRDNs, Childrens Hospital,
Series A, PNC Bank LOC, 4.000%, 05/15/17 2,000
- -------------------------------------------------------------------------------
2,000 Hamilton County, HRB, Weekly VRDNs, Bank One Indiana N.A.
LOC, 4.050%, 01/01/30 2,000
- -------------------------------------------------------------------------------
7,500 Hamilton County, HRB, Weekly VRDNs, Health Alliance, Series
A, MBIA, 4.050%, 01/01/18 7,500
- -------------------------------------------------------------------------------
1,900 Hamilton County, HRB, Weekly VRDNs, Health Alliance, Series
B, MBIA,4.000%, 01/01/18 1,900
- -------------------------------------------------------------------------------
1,000 Hamilton County, Weekly VRDNs, Cincinnati Arts Association,
Fifth Third Bank LOC, 4.050%, 05/01/13 1,000
- -------------------------------------------------------------------------------
4,000 Hamilton County, HRB, Weekly VRDNs, Heath Alliance, Series
E, MBIA, 4.050%, 01/01/18 4,000
- -------------------------------------------------------------------------------
2,000 Hancock County, BANs, 3.42%, 12/01/99 2,007
- -------------------------------------------------------------------------------
1,500 Highland Heights, BANs, 3.250%, 11/18/99 1,503
- -------------------------------------------------------------------------------
1,000 Hilliard, BANs, 3.850%, 09/09/99 1,002
- -------------------------------------------------------------------------------
1,340 Lakota, LSD, BANs, 4.000%, 06/10/99 1,341
- -------------------------------------------------------------------------------
1,000 Lebanon, BANs, 4.070%, 05/27/99 1,001
- -------------------------------------------------------------------------------
1,745 Lorain County, Weekly VRDNs, Elyria Methodist Project, Key
Bank LOC, 4.100%, 06/01/12 1,745
- -------------------------------------------------------------------------------
1,820 Lorain County, Weekly VRDNs, United Methodist Project, Key
Bank LOC, 4.100%, 06/01/22 1,820
- -------------------------------------------------------------------------------
1,000 Loveland, GO, BANs, 3.860%, 09/09/99 1,001
- -------------------------------------------------------------------------------
5,000 Lucas County, Weekly VRDNs, RB, Toledo Zoological Society,
Key Bank LOC, 4.000%, 10/01/05 5,000
- -------------------------------------------------------------------------------
1,000 Lyndhurst, BANs, 3.869%, 03/17/99 1,000
- -------------------------------------------------------------------------------
4,000 Mt. Vernon Nazarene College, National City Bank LOC,
4.750%, 03/01/99 4,009
- -------------------------------------------------------------------------------
920 Mahoning County, Daily VRDNs, Series 1992, Copeland Oaks,
Bank One LOC, 4.050%, 04/01/17 920
- -------------------------------------------------------------------------------
2,000 Mahoning County, Weekly VRDNS, HRB, Forum Health Obligation
Group B, MBIA, 4.000%, 12/01/28 2,000
- -------------------------------------------------------------------------------
900 Marion County, Weekly VRDNs, Bank One LOC, 4.050%, 08/01/20 900
- -------------------------------------------------------------------------------
2,900 Mason County, EDR, Weekly VRDNs, Cedar Village Project,
4.030%, 12/01/07 2,900
- -------------------------------------------------------------------------------
1,500 Mason, CSD, BANs, Series A, 4.020%, 02/18/99 1,501
- -------------------------------------------------------------------------------
1,000 Medina, BANs, 3.940%, 06/17/99 1,001
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio (Continued)
- -------------------------------------------------------------------------------
$2,000 Middleburg Heights, Weekly VRDNs, Southwest General Health,
Key Bank LOC, 4.050%, 08/15/22 $2,000
- -------------------------------------------------------------------------------
1,300 Montgomery County, Daily VRDNs, Series A, Miami Valley
Hospital, National City Bank SPA, 5.000%, 11/15/22 1,300
- -------------------------------------------------------------------------------
1,000 Morrow County, Weekly VRDNs, Field Container, American
National Bank LOC, 4.050%, 12/01/99 1,000
- -------------------------------------------------------------------------------
1,000 Ohio School Districts Cash Flow Borrowing Program, BANs,
4.050%, 06/30/99 1,002
- -------------------------------------------------------------------------------
2,500 Ohio State Air Quality Development Authority,
Cleveland Electric, RB, 3.000%, 02/02/99 (e) 2,500
- -------------------------------------------------------------------------------
3,900 Ohio State Air Quality Development Authority, Daily VRDNs,
Mead Corp., Deutsche Bank LOC, 4.900%, 10/01/01 3,900
- -------------------------------------------------------------------------------
700 Ohio State Air Quality Development Authority, Daily VRDNs,
Series B, 5.200%, 12/01/15 700
- -------------------------------------------------------------------------------
2,000 Ohio State Air Quality Development Authority, RB, Cleveland
Electric, FGIC, 3.400%, 01/13/99 (e) 2,000
- -------------------------------------------------------------------------------
3,200 Ohio State Environmental Improvement, Weekly VRDNs, USX
Corp., Sanwa Bank LOC,4.050%, 05/01/11 3,200
- -------------------------------------------------------------------------------
3,200 Ohio State, HEF, Weekly VRDNs, Oberlin College, Morgan
Guaranty Trust LOC, 3.950%, 10/01/15 3,200
- -------------------------------------------------------------------------------
3,900 Ohio State, HEF, Weekly VRDNs, 4.050%, 09/01/17 3,900
- -------------------------------------------------------------------------------
1,000 Ohio State, HEF, Weekly VRDNs, Mt. Vernon Nazarene College,
National City Bank LOC, 4.100%, 09/01/09 1,000
- -------------------------------------------------------------------------------
3,000 Ohio State, HEF, Weekly VRDNs, Malone College, National
City Corp. LOC, 4.100%, 10/01/22 3,000
- -------------------------------------------------------------------------------
3,600 Ohio State Water Development Authority, Daily VRDNs, Mead
Corp., Swiss Bank LOC, 4.900%, 11/01/15 3,600
- -------------------------------------------------------------------------------
4,000 Ohio State Water Development Authority, Weekly VRDNs,
Cleveland Electric, First Chicago LOC, 4.100%, 07/01/20 4,000
- -------------------------------------------------------------------------------
1,000 Ohio State Water Development, RB, Series A,
Cleveland Electric, FGIC, 3.650%, 01/13/99 (f) 1,000
- -------------------------------------------------------------------------------
4,865 Ohio St. Pub Facs, 4.750%, 05/01/99 4,893
- -------------------------------------------------------------------------------
935 Orrville, HRB, Weekly VRDNs, National City Bank LOC,
4.000%, 12/01/07 935
- -------------------------------------------------------------------------------
1,000 Ottawa, BANs, 4.000%, 08/06/99 1,003
- -------------------------------------------------------------------------------
2,000 Reynoldsburg, BANs, 3.750%, 03/01/99 2,003
- -------------------------------------------------------------------------------
1,000 Sandusky, BANs, 3.875%, 09/16/99 1,003
- -------------------------------------------------------------------------------
1,000 Sandusky, BANs, 4.125%, 07/29/99 1,003
- -------------------------------------------------------------------------------
3,000 Sharonville, IDR, Weekly VRDNs, Edgecomb Metals, Banque
Nationale De Paris LOC, 4.000%, 11/01/09 3,000
- -------------------------------------------------------------------------------
1,000 Summit County, BANs, 4.500%, 06/03/99 1,003
- -------------------------------------------------------------------------------
2,500 Summit County, BANs, 3.625%, 11/18/99 2,516
- -------------------------------------------------------------------------------
1,500 Sycamore Community School, BANs, 4.200%,
06/29/99 1,508
- -------------------------------------------------------------------------------
2,000 The Ohio State University, RB, 3.050%, 01/20/99 2,000
- -------------------------------------------------------------------------------
2,350 The Ohio State University, Weekly VRDNs, General Receipts,
RB, 3.900%, 12/01/27 2,350
- -------------------------------------------------------------------------------
7,040 The Ohio State University, Weekly VRDNs, Series 1986B,
National Westminster Bank PLC LOC, 4.100%, 12/01/06 7,040
- -------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
-----------------
Huntington Ohio Municipal Money Market Fund (Continued)
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
Principal
Amount Value
(000) (000)
- ------------------------------------------------------------------------------
<C> <S> <C>
Ohio (Continued)
- ------------------------------------------------------------------------------
$1,660 The Ohio State
University, Weekly
VRDNs, Series 1985B,
National Westminster
Bank PLC LOC, 4.100%,
12/01/01 $1,660
- ------------------------------------------------------------------------------
2,500 Toledo Lucas, RB,
3.700%, 01/06/99 (e) 2,500
- ------------------------------------------------------------------------------
1,750 University of
Cincinnati, General
Receipts, BANs,
3.800%, 03/01/99 1,751
- ------------------------------------------------------------------------------
885 Vermillion, BANs,
3.500%, 10/28/99 887
- ------------------------------------------------------------------------------
1,000 Warren County, IDR,
Weekly VRDNs, Pioneer
Industrial, Bank of
Tokyo-Mitsubishi Bank
LOC, 5.250%, 12/01/05 1,000
- ------------------------------------------------------------------------------
2,500 Wooster, BANs, 3.300%,
10/14/99 2,502
- ------------------------------------------------------------------------------
700 Wooster, IDR, Weekly
VRDNs, Allen Group,
National Bank of
Detroit LOC, 4.150%,
12/01/10 700
- ------------------------------------------------------------------------------
Total Ohio (at amortized cost) 237,001
- ------------------------------------------------------------------------------
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (000)
- -----------------------------------------------------------------------------
<C> <S>
Other - 0.9%
- -----------------------------------------------------------------------------
$ 41 Nuveen Tax-Exempt
Money Market Fund,
Inc., 3.350% $ 41
- -----------------------------------------------------------------------------
96 Merrill Lynch
Institution Tax-
Exempt Fund, 3.600% 96
- -----------------------------------------------------------------------------
2,000 Puerto Rico
Commonwealth, Tax &
Revenue Anticipation
Note, Series A.,
3.500%, 07/30/99 2,008
- -----------------------------------------------------------------------------
Total Other 2,145
- -----------------------------------------------------------------------------
Total Investments (at amortized
cost) $239,146
- -----------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
--------------------
Huntington U.S. Treasury Money Market Fund December 31, 1998
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -----------------------------------------------------------------------------
<C> <S> <C>
(a) U.S. Treasury Bills - 47.6%
- -----------------------------------------------------------------------------
$35,000 4.300%, 01/21/99 $34,916
- -----------------------------------------------------------------------------
10,000 4.490%, 01/21/99 9,975
- -----------------------------------------------------------------------------
30,000 4.740%, 01/28/99 29,893
- -----------------------------------------------------------------------------
25,000 4.425%, 02/04/99 24,896
- -----------------------------------------------------------------------------
20,000 4.955%, 02/11/99 19,887
- -----------------------------------------------------------------------------
20,000 4.860%, 02/18/99 19,870
- -----------------------------------------------------------------------------
20,000 4.640%, 03/04/99 19,840
- -----------------------------------------------------------------------------
30,000 4.360%, 03/18/99 29,724
- -----------------------------------------------------------------------------
25,000 4.110%, 04/01/99 24,743
- -----------------------------------------------------------------------------
30,000 4.340%, 04/22/99 29,599
- -----------------------------------------------------------------------------
10,000 4.440%, 06/10/99 9,803
- -----------------------------------------------------------------------------
Total U.S. Treasury Bills (at amortized cost) 253,146
- -----------------------------------------------------------------------------
U.S. Treasury Notes - 3.8%
- -----------------------------------------------------------------------------
20,000 6.500%, 04/30/99 20,122
- -----------------------------------------------------------------------------
Total U.S. Treasury Notes (at amortized cost) 20,122
- -----------------------------------------------------------------------------
Total U.S. Treasuries (at amortized cost) 273,268
- -----------------------------------------------------------------------------
Repurchase Agreements - 48.9%
- -----------------------------------------------------------------------------
45,000 First Chicago, 5.000%, dated 12/28/98, due 01/04/99,
repurchase price $45,043,750 (collateralized by U.S.
Treasury obligations, total par value $38,015,000,
7.250%, 05/15/16, total market value $46,360,250) 45,000
- -----------------------------------------------------------------------------
25,000 Lehman Brothers, Inc., 5.080%, dated 12/28/98, due
01/04/99, repurchase price $25,024,694 (collateralized by
U.S. Treasury obligations, total par value $17,945,000,
8.875%, 08/15/17, total market value $25,866,035) 25,000
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- ----------------------------------------------------------------------------
<C> <S> <C>
Repurchase Agreements (Continued)
- ----------------------------------------------------------------------------
$15,339 Morgan Stanley & Co., Inc., 4.620%, dated 12/31/98, due
01/04/99, repurchase price $15,346,774 (collateralized by
U.S. Treasury obligations, total par value $11,155,000,
11.750%, 02/15/10, total market value $15,653,602) $15,339
- -----------------------------------------------------------------------------
25,000 Smith Barney, Inc., 5.000%, dated 12/29/98, due 01/05/99,
repurchase price $25,024,305 (collateralized by U.S.
Treasury obligations, total par value $22,865,000,
6.500%, 10/15/06, total market value $25,690,971) 25,000
- -----------------------------------------------------------------------------
50,000 First Boston Corp., 5.080%, dated 12/29/98, due 01/05/99,
repurchase price $50,049,389 (collateralized by U.S.
Treasury obligations, total par value $34,996,000,
9.250%, 02/15/16, total market value $51,389,438) 50,000
- -----------------------------------------------------------------------------
50,000 Commerzbank, 5.150%, dated 12/30/98, due 01/06/99,
repurchase price $50,050,069 (collateralized by U.S.
Treasury obligations, total par value $49,635,000,
5.875%, 08/31/99, total market value $51,005,532) 50,000
- -----------------------------------------------------------------------------
50,000 Goldman Sachs Co., 4.800%, dated 12/31/98, due 01/07/99,
repurchase price $50,046,667 (collateralized by U.S.
Treasury obligations, total par value $40,145,000,
7.250%, 08/15/22, total market value $51,046,876) 50,000
- -----------------------------------------------------------------------------
Total Repurchase Agreements 260,339
- -----------------------------------------------------------------------------
Total Investments (at amortized cost) 533,607
- -----------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
15
<PAGE>
----------------------------------------------
Huntington Growth Fund December 31, 1998
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Market
Shares Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stock - 93.4%
- -------------------------------------------------------------------------------
Advertising - 1.8%
75 Interpublic Group of Companies, Inc. $5,981
- -------------------------------------------------------------------------------
Business Equipment & Services - 0.8%
38 Cintas Corp. 2,677
- -------------------------------------------------------------------------------
Capital Goods - 1.5%
110 Boeing Co. 3,589
33 Caterpillar, Inc. 1,532
- -------------------------------------------------------------------------------
5,121
- -------------------------------------------------------------------------------
Chemicals - 2.6%
150 Hanna (M.A.) Co. 1,847
17 Potash Corp. 1,060
200 Sigma Aldrich Corp. 5,875
- -------------------------------------------------------------------------------
8,782
- -------------------------------------------------------------------------------
Consumer Non-Durables - 5.4%
100 Colgate-Palmolive Co. 9,287
100 Fortune Brands, Inc. 3,162
86 Gillette Co. 4,155
19 Procter & Gamble Co. 1,735
- -------------------------------------------------------------------------------
18,339
- -------------------------------------------------------------------------------
Consumer Products - 7.3%
170 American Greetings Corp. 6,981
28 Bestfoods 1,491
30 Lancaster Colony Corp. 964
90 Media General, Inc., CL. A 4,786
115 Newell Co. 4,744
43 Sara Lee Corp. 1,212
50 Wrigley Wm. Jr Co. 4,478
- -------------------------------------------------------------------------------
24,656
- -------------------------------------------------------------------------------
Containers & Packaging - 1.3%
100 Avery Dennison Corp. 4,506
- -------------------------------------------------------------------------------
Electrical Equipment - 6.5%
26 AMP, Inc. 1,340
150 Analog Devices, Inc. 4,706
71 Emerson Electric Co. 4,429
89 General Electric Co. 9,032
67 Hubbell, Inc. 2,556
- -------------------------------------------------------------------------------
22,063
- -------------------------------------------------------------------------------
Energy - 6.7%
280 Anadarko Petroleum Corp. 8,645
20 Exxon Corp. 1,462
27 Mobil Corp. 2,396
41 Royal Dutch Petroleum Co. 1,963
175 Schlumberger Limited 8,072
- -------------------------------------------------------------------------------
22,538
- -------------------------------------------------------------------------------
Entertainment - 2.5%
52 Carnival Corp. 2,496
211 Mattel, Inc. 4,808
36 The Walt Disney Co. 1,080
- -------------------------------------------------------------------------------
8,384
- -------------------------------------------------------------------------------
Financial - 3.3%
70 American Express Co. 7,157
24 Fannie Mae 1,776
60 Wells Fargo Co. 2,396
- -------------------------------------------------------------------------------
11,329
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Amount/ Market
Shares Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stock (Continued)
- -------------------------------------------------------------------------------
Food & Beverage - 2.6%
217 PepsiCo, Inc. $8,883
- -------------------------------------------------------------------------------
Food Distributors - 2.0%
247 Sysco Corp. 6,766
- -------------------------------------------------------------------------------
Health Care - 4.1%
150 IMS Health Inc. 11,316
37 Medtronic Inc. 2,717
- -------------------------------------------------------------------------------
14,033
- -------------------------------------------------------------------------------
Holding Company - 0.5%
Berkshire Hathaway Inc. CL-A* 1,715
- -------------------------------------------------------------------------------
Industrial Products - 2.1%
46 Illinois Tool Works, Inc. 2,904
257 RPM, Inc. 4,120
- -------------------------------------------------------------------------------
7,024
- -------------------------------------------------------------------------------
Insurance - 1.9%
68 American International Group 6,558
- -------------------------------------------------------------------------------
Medical Supplies - 1.6%
200 Boston Scientific Corp.* 5,363
- -------------------------------------------------------------------------------
Pharmaceuticals - 17.7%
266 Abbott Laboratories 13,014
38 American Home Products Corp. 2,140
75 Johnson & Johnson 6,291
77 Merck & Co. 11,446
75 Pfizer, Inc. 9,471
31 Pharmacia & Upjohn, Inc. 1,755
290 Schering-Plough Corp. 16,023
- -------------------------------------------------------------------------------
60,140
- -------------------------------------------------------------------------------
Retail - 11.7%
340 Home Depot 20,804
98 Kohl's Corp. * 6,021
222 Walgreen 12,989
- -------------------------------------------------------------------------------
39,814
- -------------------------------------------------------------------------------
Technology - 7.6%
170 Automatic Data Processing, Inc. 13,632
32 Computer Sciences Corp. * 2,079
26 Microsoft Corp. * 3,606
59 Oracle Corp. * 2,533
41 Solectron Corp. * 3,810
- -------------------------------------------------------------------------------
25,660
- -------------------------------------------------------------------------------
Telecommunications - 1.9%
33 AirTouch Communications, Inc. * 2,380
36 Lucent Technologies, Inc. 4,003
- -------------------------------------------------------------------------------
6,383
- -------------------------------------------------------------------------------
Total Common Stock (identified cost $141,687) 316,715
- -------------------------------------------------------------------------------
(a) Commercial Paper - 7.6%
5,000 Chevron Corp., 6.057%, 01/05/99 5,000
8,000 Ford Motor Credit Corp., 5.733%, 01/07/99 8,000
5,000 General Motors Acceptance Credit Corp., 5.628%,
01/13/99 5,000
7,661 Prudential Funding Corp., 4.502%, 01/04/99 (at
amortized cost) 7,661
- -------------------------------------------------------------------------------
Total Commercial Paper (identified cost $25,660) 25,661
- -------------------------------------------------------------------------------
Total Investments (identified cost $167,347) 342,376
- -------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
16
<PAGE>
--------------------------------------
Huntington Income Equity Fund December 31, 1998
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Market
Shares Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stock - 84.5%
- -------------------------------------------------------------------------------
Banking & Finance - 18.9%
63 Associates First Capital-A $ 2,665
130 Chase Manhattan Corp. 8,848
194 First Union Corp. 11,822
200 Fleet Financial Group, Inc. 8,937
100 National City Corp. 7,250
110 Ohio Casualty Corp. 4,524
44 SunAmerica Inc. 3,565
- -------------------------------------------------------------------------------
47,611
- -------------------------------------------------------------------------------
Basic Industry - 4.3%
80 du Pont (E.I.) de Nemours & Co. 4,245
90 PPG Industries, Inc. 5,242
100 USEC, Inc. 1,387
- -------------------------------------------------------------------------------
10,874
- -------------------------------------------------------------------------------
Capital Goods - 2.0%
403 Worthington Industries, Inc. 5,031
- -------------------------------------------------------------------------------
Consumer Durables - 2.8%
120 Ford Motor Co. 7,042
- -------------------------------------------------------------------------------
Consumer Non-Durables - 8.0%
80 Clorox Co. 9,345
60 Deluxe Corp. 2,194
70 Fortune Brands, Inc. 2,214
70 Gallaher Group PLC-ADR 1,903
50 International Flavor & Fragrances, Inc. 2,209
60 RJR Nabisco 1,781
- -------------------------------------------------------------------------------
19,646
- -------------------------------------------------------------------------------
Electrical Equipment - 4.4%
108 General Electric Co. 11,023
- -------------------------------------------------------------------------------
Energy - 9.1%
85 Atlantic Richfield Co. 5,546
84 Exxon Corp. 6,142
100 Royal Dutch Petroleum Co., ADR 4,787
120 Texaco, Inc. 6,345
- -------------------------------------------------------------------------------
22,820
- -------------------------------------------------------------------------------
Pharmaceuticals - 9.9%
160 American Home Products Corp. 9,010
70 Bristol-Meyers Squibb Co. 9,367
116 Pharmacia & Upjohn, Inc. 6,569
- -------------------------------------------------------------------------------
24,946
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Amount/ Market
Shares Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Common Stock (Continued)
- -------------------------------------------------------------------------------
Real Estate Investment Trusts - 3.6%
80 Developers Diversified Realty Corp. $ 1,420
85 Mack-Cali Realty Corp. 2,624
145 National Health Properties, Inc. 3,127
66 Simon DeBartolo Group, Inc. 1,867
- -------------------------------------------------------------------------------
9,038
- -------------------------------------------------------------------------------
Technology - 4.2%
90 Xerox Corp. 10,620
- -------------------------------------------------------------------------------
Telecommunications - 8.6%
60 Bell Atlantic Corp. 3,409
100 GTE Corp. 6,744
200 Hong Kong Telecom Ltd., ADR 3,513
125 US West Communications Group 8,078
- -------------------------------------------------------------------------------
21,744
- -------------------------------------------------------------------------------
Utilities - 8.7%
315 DPL, Inc. 6,812
120 Ipalco Enterprises, Inc. 6,638
90 Peoples Energy Corp. 3,589
150 Wisconsin Energy Corp. 4,716
- -------------------------------------------------------------------------------
21,755
- -------------------------------------------------------------------------------
Total Common Stock (identified cost $98,152) 212,150
- -------------------------------------------------------------------------------
Preferred Stock - 0.5%
- -------------------------------------------------------------------------------
Finance-Retail - 0.5%
50 Prologist Trust, Series B Preferred 1,319
- -------------------------------------------------------------------------------
Total Preferred Stock (identified cost $1,250) 1,319
- -------------------------------------------------------------------------------
Corporate Bonds - 13.3%
$5,000 BankAmerica Corp., 7.125%, 03/01/09 5,531
5,000 Ford Global Bond, 7.200%, 06/15/07 5,519
2,000 General Motors, 8.800%, 03/01/21 2,538
5,000 Hydro-Quebec, 7.500%, 04/01/16 5,594
3,000 J.C. Penney & Co., 7.600%, 04/01/07 3,300
2,000 KeyCorp Institutional Capital-A, 7.826%, 12/01/26 2,175
3,000 USX Corp., 9.375%, 02/15/12 3,626
5,000 Weyerhaeuser Co., 6.950%, 08/01/17 5,013
- -------------------------------------------------------------------------------
Total Corporate Bonds (identified cost $31,510) 33,296
- -------------------------------------------------------------------------------
(a) Commercial Paper - 1.3%
3,187 Prudential Funding Corp., 4.502%, 01/04/99 3,187
- -------------------------------------------------------------------------------
Total Commercial Paper (identified cost $3,187) 3,187
- -------------------------------------------------------------------------------
Total Investments (identified cost $134,099) 249,952
- -------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
---------------------------------
Huntington Michigan Tax-Free Fund December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value
(000) (000)
- --------------------------------------------------------------------------------
<C> <S> <C>
Michigan Municipal Securities - 96.9%
- --------------------------------------------------------------------------------
$710 Ann Arbor, Water Supply System, Series T, MBIA, RB, 7.375%,
02/01/03 $802
- --------------------------------------------------------------------------------
150 Bay County, West Side Regional, Sewer Disposal System, RB,
6.400%, 05/01/01 154
- --------------------------------------------------------------------------------
475 Byron Center, Public Schools, GO, 4.800%, 05/01/11 483
- --------------------------------------------------------------------------------
305 Byron Center, Public Schools, GO, 4.900%, 05/01/12 310
- --------------------------------------------------------------------------------
500 Cadillac, Public Schools, FGIC, GO, 5.375%, 05/01/10 527
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value
(000) (000)
- --------------------------------------------------------------------------------
<C> <S> <C>
Municipal Securities (Continued)
- --------------------------------------------------------------------------------
$230 Cedar Springs, Unlimited Tax, GO, 4.850%, 05/01/12 $233
- --------------------------------------------------------------------------------
500 Chelsea, SDA, FGIC, GO, 5.500%, 05/01/08 546
- --------------------------------------------------------------------------------
200 Clio, SDA, GO, 7.200%, 05/01/01 206
- --------------------------------------------------------------------------------
500 Dearborn, SDA, GO, 5.250%, 05/01/06 530
- --------------------------------------------------------------------------------
250 Detroit, SDA, AMBAC, GO, Pre-refunded at 102, 7.100%,
05/01/01 (c) 274
- --------------------------------------------------------------------------------
500 Detroit, Sewer Disposal, MBIA, RB, 5.000%, 07/01/11 517
- --------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
--------------------------------
Huntington Michigan Tax-Free Fund (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Municipal Securities (Continued)
- -------------------------------------------------------------------------------
$500 Fowlerville, Community, SDA, MBIA, GO, 5.350%, 05/01/10 $529
- -------------------------------------------------------------------------------
545 Grand Rapids, Downtown Development Authority, MBIA, TA,
6.600%, 06/01/08 616
- -------------------------------------------------------------------------------
500 Grand Rapids, Water Supply Authority, FGIC, RB, 6.625%,
01/01/08 533
- -------------------------------------------------------------------------------
310 Grandville, Public SDA, FGIC, GO, 6.000%, 05/01/05 343
- -------------------------------------------------------------------------------
490 Greenville, Public School District, GO, 4.900%, 05/01/13 494
- -------------------------------------------------------------------------------
500 Grosse Ile Township, SDA, FGIC, GO, Pre-refunded at 100,
5.600%, 05/01/07 (c) 553
- -------------------------------------------------------------------------------
500 Harrison, Community School Project, AMBAC, GO, 5.800%,
05/01/05 548
- -------------------------------------------------------------------------------
655 Holland, Water Supply System, Series A, RB, 5.250%,
07/01/12 679
- -------------------------------------------------------------------------------
355 Holton, Public Schools, FGIC, RB, 4.800%, 05/01/13 355
- -------------------------------------------------------------------------------
500 Huron Valley, SDA, FGIC, GO, 5.450%, 05/01/08 548
- -------------------------------------------------------------------------------
500 Jenison, Michigan Public School Authority, FGIC, GO,
5.400%, 05/01/08 539
- -------------------------------------------------------------------------------
450 Kelloggsville, FGIC, RB, 5.00%, 05/01/03 457
- -------------------------------------------------------------------------------
500 Kenowa Hills, Public Schools, MBIA, GO, 5.500%, 05/01/08 538
- -------------------------------------------------------------------------------
45 Kent, HFA, Blodgett Memorial Medical Center Project, Series
A, RB, 6.875%, 07/01/99 46
- -------------------------------------------------------------------------------
500 Kent, HFA, Blodgett Memorial Hospital Project, MBIA, RB,
5.750%, 07/01/09 507
- -------------------------------------------------------------------------------
200 Kent, HFA, Mary Free Hospital Project, Series A, RB,
6.500%, 04/01/05 212
- -------------------------------------------------------------------------------
500 Kent, HFA, Pine Rest Christian Hospital Project, FGIC, RB,
6.500%, 11/01/10 541
- -------------------------------------------------------------------------------
780 Lake Orion, Community School District, GO, 4.950%, 05/01/11 799
- -------------------------------------------------------------------------------
500 Lake Shore, Public Schools, Macomb County, GO, 5.400%,
05/01/12 531
- -------------------------------------------------------------------------------
525 Lansing, Building Authority, GO, ETM, 7.150%, 06/01/03 558
- -------------------------------------------------------------------------------
350 Lenawee County, Building Authority, Human Services Project,
AMBAC, GO, 6.000%, 05/01/09 383
- -------------------------------------------------------------------------------
500 Lincoln Park, SDA, FGIC, GO, 5.500%, 05/01/06 542
- -------------------------------------------------------------------------------
200 Macomb County, Waste Water Disposal Project, GO, 6.500%,
11/01/99 204
- -------------------------------------------------------------------------------
110 Mancelona, Public Schools, GO, 5.200%, 05/01/12 113
- -------------------------------------------------------------------------------
500 Mattawan, SDA, GO, 6.400%, 05/01/09 543
- -------------------------------------------------------------------------------
235 Michigan State, AMBAC, RB, Pre-refunded at 100, 6.400%,
01/01/99 (c) 235
- -------------------------------------------------------------------------------
750 Michigan State, RB, 5.250%, 01/01/08 776
- -------------------------------------------------------------------------------
500 Michigan State Building Authority, AMBAC, GO, 6.750%,
10/01/07 550
- -------------------------------------------------------------------------------
1,000 Michigan State Environmental Protection Program, GO, Pre-
refunded at 102, 6.250%, 11/01/02 (c) 1,105
- -------------------------------------------------------------------------------
350 Michigan State, HEA, Hope College Project, Series B, RB,
5.900%, 04/01/09 366
- -------------------------------------------------------------------------------
500 Michigan State, HEA, Student Loan, Series 13, AMBAC, RB,
5.700%, 04/01/02 521
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Municipal Securities (Continued)
- -------------------------------------------------------------------------------
$300 Michigan State, HFA, Central Michigan Community Hospital,
Series A, RB, 5.750%, 10/01/02 $314
- -------------------------------------------------------------------------------
450 Michigan State, HFA, Daughters Charity Project, RB, 5.500%,
11/01/05 486
- -------------------------------------------------------------------------------
500 Michigan State, HFA, Detroit Medical Center Project, Series
A, RB, 6.375%, 08/15/09 539
- -------------------------------------------------------------------------------
500 Michigan State, HFA, Mercy Health Services, Series Q,
AMBAC, RB, 5.100%, 08/15/07 529
- -------------------------------------------------------------------------------
660 Michigan State, HFA, Otsego Memorial Hospital Project, RB,
6.000%, 01/01/09 701
- -------------------------------------------------------------------------------
615 Michigan State, HFA, Sparrow Obligated Group Project, MBIA,
RB, 6.300%, 11/15/03 664
- -------------------------------------------------------------------------------
200 Michigan State, HFA, Saint John Hospital Project, Series A,
AMBAC, RB, 5.750%, 05/15/04 217
- -------------------------------------------------------------------------------
420 Michigan State Housing Development Authority, Walled Lake
Villa Project, FSA, RB, 5.850%, 04/15/07 456
- -------------------------------------------------------------------------------
400 Michigan State Strategic Fund, Lutheran Social Services
Project, RB, 5.200%, 09/01/04 417
- -------------------------------------------------------------------------------
435 Northern Michigan University, AMBAC, RB, Pre-refunded at
102, 5.500%, 06/01/03 (c) 472
- -------------------------------------------------------------------------------
500 Oakland County, EDA, Cranbrock Elderly Community Project,
RB, 6.375%, 11/01/14 563
- -------------------------------------------------------------------------------
500 Oakland County, Sewer Revenue, 6.250%, 11/01/06 515
- -------------------------------------------------------------------------------
500 Ottawa County, Holland Township Extension, GO, 6.800%,
08/01/05 538
- -------------------------------------------------------------------------------
500 Paw Paw, Public School District, FGIC, GO, 6.500%, 05/01/09 588
- -------------------------------------------------------------------------------
150 Rochester Hills, SDA, GO, Pre-refunded at 100, 6.500%,
05/01/02 (c) 163
- -------------------------------------------------------------------------------
500 Rockford, Public School Authority, GO, 5.600%, 05/01/05 534
- -------------------------------------------------------------------------------
640 Saginaw Valley State University, RB, 5.000%, 07/01/12 656
- -------------------------------------------------------------------------------
500 Saint Joseph, Mercy Memorial Medical Center, AMBAC, RB,
5.125%, 01/01/09 522
- -------------------------------------------------------------------------------
230 Saranac, SDA, GO, 5.700%, 05/01/07 248
- -------------------------------------------------------------------------------
400 Troy Downtown Development Authority, Series A, TA, RB,
6.100%, 11/01/10 447
- -------------------------------------------------------------------------------
300 University of Michigan, HR, Series A-1, RB, 5.250%,
12/01/10 318
- -------------------------------------------------------------------------------
500 University of Michigan, Major Capital Projects, RB, 5.800%,
04/01/10 534
- -------------------------------------------------------------------------------
500 Utica, Community Schools Project, GO, 5.700%, 05/01/06 541
- -------------------------------------------------------------------------------
405 Warren, Transportation Fund, GO, 5.000%, 06/01/07 415
- -------------------------------------------------------------------------------
500 West Ottawa, Public School District, FGIC, GO, 5.400%,
05/01/09 534
- -------------------------------------------------------------------------------
Total Michigan Securities (identified cost $29,889) 31,757
- -------------------------------------------------------------------------------
Cash Equivalent - 2.0%
652 Federated Michigan Municipal Cash Trust, 3.530% 652
- -------------------------------------------------------------------------------
Total Cash Equivalent (identified cost $652) 652
- -------------------------------------------------------------------------------
Total Investments (identified cost $30,541) 32,409
- -------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
18
<PAGE>
-------------------------------------
Huntington Ohio Tax-Free Fund December 31, 1998
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio Long-Term Municipal Securities - 94.2%
- --------------------------------------------------------------------------------
$500 Akron, GO, 5.300%, 12/01/11 $529
- --------------------------------------------------------------------------------
215 Alliance, CSD, AMBAC, GO, 6.200%, 12/01/01 230
- --------------------------------------------------------------------------------
300 Aurora, CSD, FGIC, GO, 5.500%, 12/01/07 328
- --------------------------------------------------------------------------------
280 Avon Lake, Water System, AMBAC, RB, 5.100%, 10/01/05 294
- --------------------------------------------------------------------------------
250 Beachwood, CSD, GO, 6.600%, 12/01/04 273
- --------------------------------------------------------------------------------
200 Bedford, CSD, Energy Conservation Improvement, GO,
5.400%, 06/15/03 211
- --------------------------------------------------------------------------------
215 Bedford, CSD, Energy Conservation Improvement, GO,
5.350%, 06/15/02 225
- --------------------------------------------------------------------------------
250 Blue Ash, GO, 6.500%, 11/01/99 257
- --------------------------------------------------------------------------------
500 Butler County, GO, 5.000%, 12/01/12 512
- --------------------------------------------------------------------------------
250 Butler County, Middletown Hospital, FGIC, HRB 5.250%, 11/15/00 258
- --------------------------------------------------------------------------------
250 Centerville, CSD, GO, 6.625%, 12/01/99 257
- --------------------------------------------------------------------------------
500 Chagrin Falls, Exempted School District, GO, 5.100%, 12/01/10 529
- --------------------------------------------------------------------------------
250 Cincinnati, GO, 6.750%, 12/01/01 271
- --------------------------------------------------------------------------------
500 Cleveland Heights, Series B, GO, 5.600%, 12/01/02 533
- --------------------------------------------------------------------------------
500 Cleveland, Water Works Improvement, RB, 5.250%, 01/01/13 525
- --------------------------------------------------------------------------------
200 Cleveland, Series B, AMBAC, GO, 6.400%, 10/01/02 217
- --------------------------------------------------------------------------------
500 Cleveland, Public Power System, Series B, MBIA, RB,
5.900%, 11/15/01 530
- --------------------------------------------------------------------------------
250 Columbus, CSD, FGIC, GO, 5.050%, 12/01/02 261
- --------------------------------------------------------------------------------
214 Columbus, GO, 5.700%, 07/15/06 227
- --------------------------------------------------------------------------------
250 Columbus, GO, 6.300%, 04/15/03 263
- --------------------------------------------------------------------------------
500 Columbus, GO, 5.000%, 07/15/13 517
- --------------------------------------------------------------------------------
270 Columbus, Series 2, GO, 5.350%, 05/15/03 287
- --------------------------------------------------------------------------------
500 Columbus, Series B, GO, 6.300%, 01/01/05 541
- --------------------------------------------------------------------------------
300 Columbus, Series D, GO, 5.250%, 09/15/11 315
- --------------------------------------------------------------------------------
250 Copley, Fairlawn, CSD, GO, 5.150%, 12/01/01 260
- --------------------------------------------------------------------------------
500 Cuyahoga County, GO, 5.200%, 11/15/09 541
- --------------------------------------------------------------------------------
500 Cuyahoga County, HRB, 5.250%, 01/01/13 524
- --------------------------------------------------------------------------------
500 Cuyahoga County, Series B, GO, 4.500%, 10/01/00 509
- --------------------------------------------------------------------------------
200 Cuyahoga Falls, MBIA, GO, 5.400%, 12/01/06 217
- --------------------------------------------------------------------------------
500 Dayton, Capital Facilities, GO, 5.000%, 12/01/12 513
- --------------------------------------------------------------------------------
400 Delaware, GO, 5.400%, 11/01/02 409
- --------------------------------------------------------------------------------
250 Dover, Electric System, FGIC, RB, 5.500%, 12/01/07 271
- --------------------------------------------------------------------------------
250 Dublin, CSD, FGIC, GO, 6.050%, 12/01/03 274
- --------------------------------------------------------------------------------
250 Dublin, CSD, FGIC, GO, 6.150%, 12/01/04 278
- --------------------------------------------------------------------------------
500 Dublin, CSD, MBIA, GO, 5.000%, 12/02/08 530
- --------------------------------------------------------------------------------
250 Eastlake, GO, 5.000%, 12/01/04 265
- --------------------------------------------------------------------------------
440 Elyria, GO, 5.100%, 12/01/11 456
- --------------------------------------------------------------------------------
500 Euclid, GO, 5.000%, 12/01/12 516
- --------------------------------------------------------------------------------
500 Euclid, GO, 5.300%, 12/01/07 544
- --------------------------------------------------------------------------------
500 Euclid, GO, 5.450%, 12/01/08 549
- --------------------------------------------------------------------------------
250 Euclid, GO, 6.400%, 12/01/04 273
- --------------------------------------------------------------------------------
245 Fairfield, CSD, FGIC, GO, 5.650%, 12/01/06 270
- --------------------------------------------------------------------------------
500 Findlay, GO, 5.500%, 07/01/08 553
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio Long-Term Municipal Securities (Continued)
- --------------------------------------------------------------------------------
$250 Findlay, SSRB, 5.200%, 07/01/06 $266
- --------------------------------------------------------------------------------
500 Franklin County, GO, 5.050%, 12/01/05 534
- --------------------------------------------------------------------------------
285 Franklin County, Convention Authority,
MBIA, RB, 5.500%, 12/01/03 305
- --------------------------------------------------------------------------------
305 Franklin County, MBIA, GO, 6.000%, 09/01/06 338
- --------------------------------------------------------------------------------
500 Franklin County, Childrens Hospital,
Series A, HRB, 5.800%, 11/01/10 541
- --------------------------------------------------------------------------------
250 Franklin County, Childrens Hospital,
Series A, HRB, 6.500%, 05/01/07 274
- --------------------------------------------------------------------------------
500 Franklin County, Childrens Hospital,
Series A, HRB, Prerefunded at 102,
6.400%, 11/01/01 (c) 546
- --------------------------------------------------------------------------------
550 Franklin County, Holy Cross Hospital, Series
A, HRB, 7.200%, 06/01/00 575
- --------------------------------------------------------------------------------
515 Gahanna, GO, 5.250%, 06/01/02 539
- --------------------------------------------------------------------------------
580 Gahanna, GO, 5.550%, 06/01/05 631
- --------------------------------------------------------------------------------
250 Gahanna, Series A, GO, Pre-refunded at 102,
6.400%, 06/01/01 (c) 270
- --------------------------------------------------------------------------------
250 Grandview Heights, GO, 7.100%, 12/01/06 275
- --------------------------------------------------------------------------------
250 Grandview Heights, CSD, GO, 5.400%, 12/01/05 271
- --------------------------------------------------------------------------------
300 Greene County, Water System, Series A,
FGIC, RB, 5.750%, 12/01/09 334
- --------------------------------------------------------------------------------
500 Hamilton County, GO, 5.100%, 12/01/11 520
- --------------------------------------------------------------------------------
505 Hamilton County, GO, 4.875%, 12/01/12 518
- --------------------------------------------------------------------------------
250 Hamilton County, Childrens Hospital,
MBIA, HRB, 4.600%, 05/15/00 253
- --------------------------------------------------------------------------------
500 Hamilton County, Childrens Hospital,
Series D, FGIC, HRB, 4.900%, 05/15/03 519
- --------------------------------------------------------------------------------
500 Hamilton County, Christ Hospital, Series A,
FGIC, HRB, 6.500%, 01/01/02 527
- --------------------------------------------------------------------------------
300 Hamilton County, Museum Center, GO, 5.950%, 12/01/02 324
- --------------------------------------------------------------------------------
500 Hamilton County, SSRB, 4.700%, 12/01/09 512
- --------------------------------------------------------------------------------
155 Hamilton County, Series A, SSRB, 6.300%, 12/01/01 165
- --------------------------------------------------------------------------------
305 Hamilton County, Series A, SSRB, 6.400%, 12/01/03 327
- --------------------------------------------------------------------------------
95 Hamilton County, Series A, SSRB, Pre-refunded
at 102, 6.300%, 06/01/01 (c) 102
- --------------------------------------------------------------------------------
195 Hamilton County, Series A, SSRB, Pre-refunded
at 102, 6.400%, 06/01/01 (c) 211
- --------------------------------------------------------------------------------
500 Hamilton County, Waste Water Systems, Series
A, FSA, RB, 4.800%, 10/15/12 502
- --------------------------------------------------------------------------------
315 Hancock County, GO, 5.200%, 12/01/08 339
- --------------------------------------------------------------------------------
500 Hilliard, CSD, GO, 4.800%, 12/01/08 527
- --------------------------------------------------------------------------------
250 Hilliard, CSD, AMBAC, GO, 5.000%, 12/01/03 262
- --------------------------------------------------------------------------------
500 Hilliard, CSD, Series A, GO, 5.350%, 12/01/04 541
- --------------------------------------------------------------------------------
170 Hilliard, GO, 5.350%, 12/01/06 184
- --------------------------------------------------------------------------------
180 Hilliard, GO, 5.500%, 12/01/07 197
- --------------------------------------------------------------------------------
245 Indian Hill, Water Works, RB, 4.900%, 06/01/05 258
- --------------------------------------------------------------------------------
500 Jefferson County, GO, 4.950%, 12/01/12 519
- --------------------------------------------------------------------------------
500 Kent State University, MBIA, RB, 5.300%, 05/01/10 531
- --------------------------------------------------------------------------------
500 Kent State University, Series A, RB, 4.700%, 05/01/10 508
- --------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
-------------------------------------
Huntington Ohio Tax-Free Fund (Continued)
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio Long-Term Municipal Securities (Continued)
- -------------------------------------------------------------------------------
$585 Kettering, GO, 5.050%, 12/01/04 $621
- -------------------------------------------------------------------------------
255 Lakewood, CSD, GO, 5.050%, 12/01/05 272
- -------------------------------------------------------------------------------
535 Lakewood, GO, 5.850%, 12/01/02 575
- -------------------------------------------------------------------------------
250 Lakota, LSD, AMBAC, GO, 6.400%, 12/01/00 263
- -------------------------------------------------------------------------------
500 Lorain County, HRB, 6.000%, 09/01/08 566
- -------------------------------------------------------------------------------
500 Lorain County, Water Authority, AMBAC, RB, 4.950%, 10/01/04 524
- -------------------------------------------------------------------------------
200 Marysville, Village School, AMBAC, GO, 6.900%, 12/01/00 212
- -------------------------------------------------------------------------------
500 Mason, CSD, GO, 5.150%, 12/01/12 524
- -------------------------------------------------------------------------------
250 Mentor, Street Improvement, Series 1991-A, GO, 6.700%,
12/01/03 267
- -------------------------------------------------------------------------------
250 Miami County, GO, 4.875%, 12/01/10 261
- -------------------------------------------------------------------------------
500 Miami University, RB, 5.400%, 12/01/05 532
- -------------------------------------------------------------------------------
500 Miami University, RB, 4.500%, 12/01/12 489
- -------------------------------------------------------------------------------
200 Miami Valley, Regional Transit Authority, GO, 5.100%,
12/01/01 206
- -------------------------------------------------------------------------------
500 Montgomery County, GO, 5.400%, 12/01/11 537
- -------------------------------------------------------------------------------
270 Montgomery County, GO, 5.600%, 12/01/05 285
- -------------------------------------------------------------------------------
285 Montgomery County, GO, 5.750%, 12/01/06 302
- -------------------------------------------------------------------------------
500 Montgomery County, Miami Valley Hospital, Series A, AMBAC,
HRB, 6.100%, 11/15/02 541
- -------------------------------------------------------------------------------
500 Montgomery County, Series A, GO, Pre-refunded at 100,
6.450%, 09/01/01 (c) 535
- -------------------------------------------------------------------------------
500 Montgomery County, Series A, GO, Pre-refunded at 100,
6.500%, 09/01/01 (c) 536
- -------------------------------------------------------------------------------
250 Muskingum County, Bethesda Hospital, Connie Lee Insured,
HRB, 5.350%, 12/01/07 270
- -------------------------------------------------------------------------------
500 Northeast, Regional Sewer District, AMBAC, RB, 6.400%,
11/15/03 543
- -------------------------------------------------------------------------------
235 Norwalk, Water Works System, Series 1996, RB, 5.550%,
04/01/09 258
- -------------------------------------------------------------------------------
250 Norwalk, Water Works System, Series 1996, RB, 5.600%,
04/01/10 273
- -------------------------------------------------------------------------------
500 Ohio State Building Authority, Correction Facility, Series
A, RB, 6.500%, 10/01/04 545
- -------------------------------------------------------------------------------
500 Ohio State Building Authority, James Rhodes Center, Series
A, RB, 6.200%, 06/01/04 538
- -------------------------------------------------------------------------------
250 Ohio State Capital Facilities, Series 1995, AMBAC, RB,
5.800%, 06/01/03 269
- -------------------------------------------------------------------------------
300 Ohio State Economic Development, Sysco Food Service, RB,
6.600%, 12/01/03 333
- -------------------------------------------------------------------------------
250 Ohio State, HEF, John Carroll University, RB, 5.350%,
10/01/05 266
- -------------------------------------------------------------------------------
250 Ohio State, HEF, Oberlin College, RB, 5.000%, 10/01/02 259
- -------------------------------------------------------------------------------
555 Ohio State, HEF, Ohio Northern University, Connie Lee, RB,
4.900%, 05/01/03 577
- -------------------------------------------------------------------------------
250 Ohio State, HEF, University of Dayton, FGIC, RB, 6.100%,
12/01/01 267
- -------------------------------------------------------------------------------
445 Ohio State, HEF, Denison University, RB, 5.400%, 11/01/11 468
- -------------------------------------------------------------------------------
500 Ohio State Public Facilities, Mental Health, Series A,
MBIA, RB, 6.750%, 12/01/01 523
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Ohio Long-Term Municipal Securities (Continued)
- -------------------------------------------------------------------------------
$250 Ohio State Public Facilities, Series A, MBIA, RB, 6.500%,
06/01/00 $258
- -------------------------------------------------------------------------------
250 Ohio State Public Facilities, Series 11B, AMBAC, RB,
5.700%, 11/01/99 255
- -------------------------------------------------------------------------------
750 Ohio State Turnpike, Series A, RB, 5.350%, 02/15/09 792
- -------------------------------------------------------------------------------
500 Ohio State University, Series A2, RB, 5.750%, 12/01/09 534
- -------------------------------------------------------------------------------
500 Ohio State Water Development Authority, Clean Air Project,
MBIA, RB, 5.650%, 06/01/05 536
- -------------------------------------------------------------------------------
250 Olmstead Falls, LSD, FGIC, GO, 6.300%, 12/15/01 269
- -------------------------------------------------------------------------------
250 Pickerington, LSD, AMBAC, GO, 5.550%, 12/01/07 269
- -------------------------------------------------------------------------------
200 Portage County, AMBAC, GO, 5.200%, 12/01/01 209
- -------------------------------------------------------------------------------
500 Rocky River, CSD, GO, 5.150%, 12/01/08 539
- -------------------------------------------------------------------------------
500 Solon, GO, 5.250%, 12/01/07 539
- -------------------------------------------------------------------------------
150 Solon, GO, 5.650%, 12/01/05 160
- -------------------------------------------------------------------------------
250 Solon, GO, 6.550%, 12/01/00 263
- -------------------------------------------------------------------------------
250 Solon, GO, 6.650%, 12/01/01 263
- -------------------------------------------------------------------------------
250 Solon, LSD, ETM, GO, 6.850%, 12/01/00 266
- -------------------------------------------------------------------------------
245 South Euclid, Recreational Facilities, GO, 6.150%, 12/01/00 257
- -------------------------------------------------------------------------------
250 South Western, CSD, ETM, GO, 6.100%, 12/01/99 257
- -------------------------------------------------------------------------------
250 South Western, CSD, Series A, AMBAC, GO, 6.000%, 12/01/04 272
- -------------------------------------------------------------------------------
250 Springfield, LSD, GO, 6.000%, 12/01/02 270
- -------------------------------------------------------------------------------
250 State of Ohio, Series S, HBR, 4.500%, 05/15/00 253
- -------------------------------------------------------------------------------
500 State of Ohio, Series T, HRB, 4.800%, 05/15/01 513
- -------------------------------------------------------------------------------
500 Strongsville, GO, 6.700%, 12/01/11 583
- -------------------------------------------------------------------------------
250 Summit County, MBIA, GO, 5.650%, 12/01/07 270
- -------------------------------------------------------------------------------
500 The Ohio State University, Series A2, RB, 5.300%, 12/01/01 521
- -------------------------------------------------------------------------------
500 Toledo, Series A, MBIA, SSRB, 7.250%, 11/15/00 516
- -------------------------------------------------------------------------------
500 Troy, GO, 6.250%, 12/01/11 583
- -------------------------------------------------------------------------------
550 Twinsburg, LSD, GO, 5.400%, 12/01/09 593
- -------------------------------------------------------------------------------
500 University of Cincinnati, MBIA, RB, 5.100%, 06/01/11 524
- -------------------------------------------------------------------------------
250 University of Cincinnati, MBIA, RB, 6.400%, 12/01/03 274
- -------------------------------------------------------------------------------
250 University of Cincinnati, Series R5, RB, 5.150%, 06/01/05 263
- -------------------------------------------------------------------------------
250 University of Cincinnati, Series R9, RB, 5.600%, 06/01/09 261
- -------------------------------------------------------------------------------
250 University of Cincinnati, Series V, RB, 5.250%, 06/01/08 263
- -------------------------------------------------------------------------------
265 University of Cincinnati, Series V, RB, 5.350%, 06/01/09 279
- -------------------------------------------------------------------------------
655 University of Toledo, RB, 4.500%, 06/01/12 643
- -------------------------------------------------------------------------------
500 Vandalia, GO, 5.450%, 12/01/10 540
- -------------------------------------------------------------------------------
175 Warren County, Sewer Improvement, Lower Miami Valley, RB,
5.250%, 12/01/08 189
- -------------------------------------------------------------------------------
185 Warren County, Sewer Improvement, Lower Miami Valley, RB,
5.350%, 12/01/09 200
- -------------------------------------------------------------------------------
170 Warren County, Series A, SSRB, Pre-refunded at 102, 6.950%,
12/01/00 (c) 184
- -------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
-------------------------------------
Huntington Ohio Tax-Free Fund (Continued)
-------------------------
Huntington Fixed Income Securities Fund December 31, 1998
<TABLE>
- -----------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -----------------------------------------------------------------------------
<C> <S> <C>
Ohio Long-Term Municipal Securities (Continued)
- -----------------------------------------------------------------------------
$400 Warren County, Water System Improvement, P&G Project, RB,
5.250%, 12/01/07 $431
- -----------------------------------------------------------------------------
235 Warren County, Water Works, FGIC, RB,6.100%, 12/01/02 255
- -----------------------------------------------------------------------------
470 Westerville, Water System, RB, 5.900%, 12/01/04 512
- -----------------------------------------------------------------------------
500 Westlake, CSD, Series A, GO, 5.500%, 12/01/10 551
- -----------------------------------------------------------------------------
500 Westlake, GO, 5.350%, 12/01/10 548
- -----------------------------------------------------------------------------
250 Worthington, CSD, FGIC, GO, 5.850%, 06/01/02 267
- -----------------------------------------------------------------------------
250 Worthington, CSD, MBIA, GO, 7.150%, 12/01/00 264
- -----------------------------------------------------------------------------
250 Wright State University, AMBAC, RB, 5.000%, 05/01/06 261
- -----------------------------------------------------------------------------
515 Wyoming , CSD, FGIC, GO, 4.600%, 12/01/12 515
- -----------------------------------------------------------------------------
Total Ohio Long-Term Municipal Securities
(identified cost $57,303) 60,888
- -----------------------------------------------------------------------------
Other Long-Term Municipal Securities - 0.9%
- -----------------------------------------------------------------------------
500 Puerto Rico Commonwealth, Mead Corp., Deutsche Bank LOC,
GO, 6.500%, 07/01/11 606
- -----------------------------------------------------------------------------
Total Other Long-Term Municipal Securities
(identified cost $560) 606
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- ------------------------------------------------------------------------------
<C> <S> <C>
Short-Term Municipal Securities - 4.1%
- ------------------------------------------------------------------------------
$290 Aurora, GO, Pre-refunded at 102, 7.350%, 12/01/99 (c) $306
- ------------------------------------------------------------------------------
300 Cincinnati & Hamilton County, Daily VRDNs, Kenwood Office,
Kredeitbank LOC, RB, 5.000%, 09/01/25 300
- ------------------------------------------------------------------------------
250 Cincinnati, Street Improvement, GO, 7.000%, 12/01/99 259
- ------------------------------------------------------------------------------
250 Columbus, GO, Pre-refunded at 102, 7.000%, 03/01/99 (c) 257
- ------------------------------------------------------------------------------
325 Columbus, GO, Weekly VRDNs, 3.850%, 12/01/17 325
- ------------------------------------------------------------------------------
500 Cuyahoga County, GO, Pre-refunded at 102, 6.900%, 01/01/99
(c) 524
- ------------------------------------------------------------------------------
420 Euclid, GO, Pre-refunded at 102, 7.000%, 12/01/99 (c) 443
- ------------------------------------------------------------------------------
125 Ohio State Building Authority, Series A, RB, Pre-refunded
at 102, 7.250%, 03/01/99 (c) 128
- ------------------------------------------------------------------------------
125 Ohio State Building Authority, Series H, RB, Pre-refunded
at 102, 7.250%, 08/01/99 (c) 130
- ------------------------------------------------------------------------------
Total Short-Term Municipal Securities (identified cost $2,592) 2,672
- ------------------------------------------------------------------------------
Total Investments (identified cost $60,455) 64,166
- ------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
<TABLE>
- --------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- --------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds - 73.2%
- --------------------------------------------------------------------
Banks and Savings & Loans - 5.8%
$1,000 ABN Amro, 7.250%, 05/31/05 $1,070
1,000 Banc One, 7.000%, 07/15/05 1,065
250 BankAmerica Corp., 7.750%, 07/15/02 267
250 Citicorp, 9.750%, 08/01/99 256
1,000 Citicorp, 7.250%, 09/01/08 1,100
500 Comerica, 9.750%, 05/01/99 506
1,000 First Tennessee Bank, 6.400%, 04/01/08 1,033
1,000 KeyCorp, 6.750%, 03/15/06 1,055
1,000 Mellon Bank N.A., 6.500%, 08/01/05 1,040
1,000 NBD Bancorp, 7.125%, 05/15/07 1,111
250 Security Pacific Corp., 9.750%, 05/15/99 254
1,000 Swiss Bank Corp.- New York, 7.250%, 09/01/06 1,089
- --------------------------------------------------------------------
9,846
- --------------------------------------------------------------------
Basic Industry - 2.5%
500 Air Products & Chemicals, Inc., 8.875%, 08/01/01 542
250 Arco Chemical Co., 9.900%, 11/01/00 259
1,000 Norsk Hydro, 6.700%, 01/15/18 994
250 Weyerhaeuser Co., 9.050%, 02/01/03 281
1,000 Weyerhaeuser Co., 7.250%, 07/01/13 1,086
1,000 Worthington Industries, Inc., 7.125%, 05/15/06 1,055
- --------------------------------------------------------------------
4,217
- --------------------------------------------------------------------
Capital Goods - 0.2%
250 Caterpillar, Inc., 9.375%, 07/15/00 266
- --------------------------------------------------------------------
Consumer Goods & Services - 14.0%
1,500 American Home Products Corp., 6.500%, 10/15/02 1,560
1,000 Amgen, Inc., 6.500%, 12/01/07 1,064
1,000 Bergen Brunswig Corp., 7.250%, 06/01/05 1,095
</TABLE>
<TABLE>
- --------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- --------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds (Continued)
- --------------------------------------------------------------------
Consumer Goods & Services (Continued)
$1,000 Cardinal Health, 6.000%, 01/15/06 $1,005
1,000 Carnival Corp., 6.150%, 10/01/03 994
1,000 Darden Restaurants, Inc., 6.375%, 02/01/06 1,011
250 Dayton Hudson Corp., 10.000%, 12/01/00 271
1,000 E.W. Scripps Co., 6.625%, 10/15/07 1,075
800 Gerber Products, 9.000%, 10/15/06 978
750 Grand Met Investment Corp., 7.125%, 09/15/04 804
1,000 Harvard University, 8.125%, 04/15/07 1,155
1,000 Hertz Corp., 7.000%, 07/15/03 1,029
1,000 J.C. Penney & Co., 6.875%, 10/15/15 1,006
1,200 Knight Ridder, 9.875%, 04/15/09 1,590
250 Limited, Inc., 9.125%, 02/01/01 267
1,000 Limited, Inc., 7.800%, 05/15/02 1,061
750 May Department Stores Co., 9.875%, 06/15/00 800
1,000 McDonald's Corp., 8.875%, 04/01/11 1,295
500 Philip Morris Co., Inc., 7.625%, 05/15/02 526
1,000 Ralston Purina, 9.250%, 10/15/09 1,262
1,000 Rubbermaid, Inc., 6.600%, 11/15/06 1,074
1,000 Stewart Enterprises, 6.700%, 12/01/03 1,049
250 Universal Corp., 9.250%, 02/15/01 269
1,500 V.F. Corp., 7.600%, 04/01/04 1,648
- --------------------------------------------------------------------
23,888
- --------------------------------------------------------------------
Diversified Industrial - 1.4%
500 Joseph E. Seagram & Sons, Inc., 7.000%, 04/15/08 504
1,000 Tandy Corp., 6.950%, 09/01/07 1,080
500 Watts Industries, 8.375%, 12/01/03 563
250 Whirlpool Corp., 9.500%, 06/15/00 263
- --------------------------------------------------------------------
2,410
- --------------------------------------------------------------------
</TABLE>
21
<PAGE>
-------------------------
Huntington Fixed Income Securities Fund (Continued)
<TABLE>
- -------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds (Continued)
- -------------------------------------------------------------------
Energy-Oil & Gas - 0.6%
$1,000 Ashland Oil, Inc., 7.710%, 05/11/07 $1,099
- -------------------------------------------------------------------
Finance Companies - 9.2%
1,000 Abbey National PLC, 6.690%, 10/17/05 1,051
1,000 Ameritech Capital, 6.550%, 01/15/28 1,026
1,000 Bear Stearns, 6.625%, 01/15/04 1,021
1,000 Case (J.I.) Credit Corp., 6.750%, 10/21/07 1,055
1,000 Countrywide Funding Corp., 8.250%, 07/15/02 1,070
1,000 Crown Cork & Seal Finance PLC, 7.000%, 12/15/06 1,055
1,000 CSW Investments, 7.450%, 08/01/06 1,079
500 Eaton Off Shore, Ltd., 9.000%, 02/15/01 537
1,000 Ford Motor Credit Corp., 7.750%, 03/15/05 1,109
500 Kimco Realty, 6.500%, 10/01/03 500
1,000 MBNA Corp., 6.875%, 06/01/05 1,004
1,000 Salomon Brothers, 6.750%, 01/15/06 1,040
1,300 Smurfit Capital, 6.750%, 11/20/05 1,306
1,300 SunAmerica, Inc., 7.340%, 08/30/05 1,409
1,250 Wilmington Trust Co., 6.625%, 05/01/08 1,297
- -------------------------------------------------------------------
15,559
- -------------------------------------------------------------------
(d) Foreign Industrial - 3.7%
1,000 Canadian National Railroad, 7.000%, 03/15/04 1,055
1,000 English China Clay, 7.375%, 10/01/02 1,057
750 Hydro-Quebec, Canada, 7.375%, 02/01/03 795
1,000 Hydro-Quebec, Canada, 9.750%, 01/15/18 1,138
500 Northern Telecom, Ltd., 8.750%, 06/12/01 538
1,000 Philips Electronics, 8.375%, 09/15/06 1,106
615 Rhone-Poulnec, 7.750%, 01/15/02 652
- -------------------------------------------------------------------
6,341
- -------------------------------------------------------------------
(d) Foreign Sovereign - 4.6%
1,000 Barcelona City, Spain, 8.125%, 02/15/05 1,110
1,000 Gen De Catalunya, 6.375%, 12/15/07 1,047
1,000 Province of Ontario, Canada, 6.000%, 02/21/06 1,032
500 Province of Ontario, Canada, 6.125%, 06/28/00 506
250 Province of Quebec, Canada, 8.800%, 04/15/03 280
1,000 Province of Quebec, Canada, 8.625%, 01/19/05 1,145
1,000 Republic of Finland, 7.875%, 07/28/04 1,133
1,550 Republic of Iceland, 6.125%, 02/01/04 1,591
- -------------------------------------------------------------------
7,844
- -------------------------------------------------------------------
Gas & Electric Utilities - 7.6%
1,000 Atlantic City Electric, 6.750%, 05/12/08 1,074
500 Baltimore Gas & Electric, 6.625%, 03/15/08 539
1,000 Cincinnati Gas & Electric, 6.400%, 04/01/08 1,040
1,100 Duke Energy Corporation, 6.375%, 03/01/08 1,118
815 Iowa Electric Power & Light, 8.625%, 05/15/01 878
1,300 Jersey Central Power & Light, 7.125%, 10/01/04 1,399
1,000 Minnesota Power & Light, 7.750%, 06/01/07 1,074
1,000 National Rural Utilities, 7.200%, 10/01/15 1,088
1,000 Northwestern Public Services, 7.100%, 08/01/05 1,096
1,000 Otter Tail Power Co., 6.375%, 12/01/07 1,056
1,000 Pennsylvania Power & Light, 6.875%, 02/01/03 1,051
1,000 Public Service Electric & Gas, 6.250%, 01/01/07 1,034
500 Western Resources, Inc., 7.250%, 07/01/99 504
- -------------------------------------------------------------------
12,951
- -------------------------------------------------------------------
Industrial - 12.4%
1,000 Archer-Daniels-Midland Co., 7.500%, 03/15/27 1,172
1,000 Boeing Co., 7.250%, 06/15/25 1,087
1,500 Borg-Warner Auto, 7.000%, 11/01/06 1,562
1,000 Briggs & Stratton, 7.250%, 09/15/07 1,041
1,000 Cargill, Inc., 6.875%, 05/01/28 1,010
1,000 Carpenter Technology, 6.530%, 04/15/09 1,056
1,500 Dow Chemical, 8.550%, 10/15/09 1,777
1,000 E G & G, Inc., 6.800%, 10/15/05 1,080
1,000 Goodrich BF Co., 6.450%, 04/15/08 1,019
1,000 Johnson Controls, 6.300%, 02/01/08 1,025
1,000 Kerr-McGee Corp., 6.625%, 10/15/07 1,060
1,000 Lubrizol Corp., 5.875%, 12/01/08 998
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- ---------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds (Continued)
- ---------------------------------------------------------------------------
Industrial (Continued)
$ 545 Monsanto Co., 8.875%, 12/15/09 $ 670
1,000 Nalco Chemical Co., 6.250%, 05/15/08 1,055
1,000 Olsten Corp., 7.000%, 03/15/06 1,015
1,000 Parker-Hannifin Corp., 5.650%, 09/15/03 1,004
400 Polaroid Corporation, 7.250%, 01/15/07 371
1,000 Reynolds & Reynolds, 7.000%, 12/15/06 1,075
1,000 Servicemaster LP, 6.950%, 08/15/07 1,089
1,000 Toro Company, 7.125%, 06/15/07 1,005
- ---------------------------------------------------------------------------
21,171
- ---------------------------------------------------------------------------
Industrial Products - 4.5%
1,000 Black & Decker Co., 7.500%, 04/01/03 1,062
1,000 Carlisle Companies, Inc., 7.250%, 01/15/07 1,096
1,000 FBG (Fosters Brewing) Finance, Ltd., 6.750%, 11/15/05 1,049
1,200 Georgia Pacific Corp., 9.950%, 06/15/02 1,337
1,000 Millennium America, Inc., 7.000%, 11/15/06 1,076
1,000 Noranda, Inc., 7.000%, 07/15/05 980
1,000 Tosco Corp., 7.250%, 01/01/07 1,049
- ---------------------------------------------------------------------------
7,649
- ---------------------------------------------------------------------------
Insurance - 2.8%
1,000 Geico Corp., 7.500%, 04/15/05 1,114
1,000 Lincoln National Corp., 7.250%, 05/15/05 1,085
1,500 MBIA, Inc., 9.000%, 02/15/01 1,613
1,000 U.S. Life, 6.375%, 06/15/00 1,010
- ---------------------------------------------------------------------------
4,822
- ---------------------------------------------------------------------------
Technology - 1.0%
500 International Business Machines, 6.375%, 06/15/00 508
1,000 Motorola, Inc., 7.500%, 05/15/25 1,135
- ---------------------------------------------------------------------------
1,643
- ---------------------------------------------------------------------------
Telephone Utilities & Communication - 1.6%
1,000 Comsat Corp., 8.950%, 05/15/01 1,081
900 GTE Corp., 9.100%, 06/01/03 1,022
500 Southwestern Bell Telephone Co., 6.625%, 04/01/05 529
- ---------------------------------------------------------------------------
2,632
- ---------------------------------------------------------------------------
Transportation - 1.3%
1,000 Atchison Topeka & Santa Fe Railroad, 6.550%, 07/01/06 1,060
250 Union Pacific Co., 9.625%, 12/15/02 280
835 Union Pacific Co., 8.500%, 01/15/17 864
- ---------------------------------------------------------------------------
2,204
- ---------------------------------------------------------------------------
Total Corporate Bonds (identified cost $118,111) 124,542
- ---------------------------------------------------------------------------
Government National Mortgage Association - 3.2%
1,438 Pool #345128, 6.500%, 01/15/24 1,453
855 Pool #352982, 7.500%, 05/15/24 882
1,625 Pool #372962, 7.000%, 03/15/24 1,663
661 Pool #373015, 8.000%, 06/15/24 687
783 Pool #391615, 8.500%, 09/15/24 830
- ---------------------------------------------------------------------------
Total Government National Mortgage Association
(identified cost $5,334) 5,515
- ---------------------------------------------------------------------------
U.S. Treasuries - 21.3%
1,000 U.S. Treasury Bonds, 8.750%, 08/15/20 1,422
11,000 U.S. Treasury Notes, 5.500%, 01/31/03 11,319
20,000 U.S. Treasury Notes, 5.500%, 02/15/08 21,192
2,000 U.S. Treasury Notes, 6.625%, 02/15/27 2,361
- ---------------------------------------------------------------------------
Total U.S. Treasuries (identified cost $34,035) 36,294
- ---------------------------------------------------------------------------
(a) Commercial Paper - 0.6%
937 Prudential Funding Corp., 4.502%, 01/04/99 937
- ---------------------------------------------------------------------------
Total Commercial Paper (at amortized cost) 937
- ---------------------------------------------------------------------------
Total Investments (identified cost $158,417) $167,288
- ---------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
22
<PAGE>
--------------
Huntington Intermediate Government Income Fund December 31,
1998
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Government Mortgage-Backed Agencies - 12.1%
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. - 0.7%
$ 67 Pool # 214693, 9.000%, 12/01/01 $ 70
685 Pool # C90005, 8.000%, 01/01/13 709
- -------------------------------------------------------------------------------
779
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. -- REMIC - 6.3%
13 Series 1204, 7.000%, 11/15/05 13
867 Series 23, 5.500%, 08/25/16 863
39 Series 1290, 7.500%, 11/15/17 39
4,060 Series 1502, 6.250%, 01/15/19 4,117
2,000 Series 1617, 6.200%, 01/15/23 2,025
- -------------------------------------------------------------------------------
7,057
- -------------------------------------------------------------------------------
Federal National Mortgage Association - 1.0%
1,074 Pool # 124308, 7.500%, 05/01/07 1,104
- -------------------------------------------------------------------------------
Federal National Mortgage Association -- REMIC - 4.1%
902 Series 1992-113, 7.500%, 07/25/02 916
240 Series 1992-78, 7.500%, 12/25/05 240
1,000 Series 1993-56, 6.350%, 07/25/18 1,007
2,475 Series 1992-210, 6.500%, 03/25/19 2,503
- -------------------------------------------------------------------------------
4,666
- -------------------------------------------------------------------------------
Total Government Mortgage-Backed Agencies
(identified cost $13,479) 13,606
- -------------------------------------------------------------------------------
Government Agencies - 35.2%
- -------------------------------------------------------------------------------
Federal Home Loan Bank - 9.1%
2,000 6.125%, 09/20/00 2,040
1,000 6.480%, 01/08/02 1,011
3,000 6.330%, 12/03/02 3,031
2,000 6.030%, 04/17/03 2,040
2,000 5.880%, 04/15/08 2,076
- -------------------------------------------------------------------------------
10,198
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. - 10.5%
1,000 6.600%, 11/12/99 1,014
1,000 6.550%, 01/04/00 1,016
2,500 6.120%, 01/21/03 2,522
2,000 6.830%, 06/15/05 2,043
2,000 7.000%, 07/06/05 2,050
3,000 6.540%, 11/06/07 3,122
- -------------------------------------------------------------------------------
11,767
- -------------------------------------------------------------------------------
Federal National Mortgage Association - 6.4%
2,000 7.000%, 05/10/01 2,014
2,000 7.550%, 04/22/02 2,153
1,000 6.330%, 10/02/02 1,020
2,000 6.160%, 06/16/03 2,023
- -------------------------------------------------------------------------------
7,210
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Government Agencies (Continued)
- -------------------------------------------------------------------------------
Federal National Mortgage Association--Medium Term Notes - 9.2%
$2,000 5.790%, 01/22/01 $2,001
1,000 6.630%, 06/05/01 1,022
1,000 6.500%, 12/27/01 1,015
4,000 6.880%, 11/20/06 4,179
1,000 6.240%, 01/14/08 1,034
1,120 6.170%, 01/15/08 1,145
- -------------------------------------------------------------------------------
10,396
- -------------------------------------------------------------------------------
Total Government Agencies (identified cost $38,611) 39,571
- -------------------------------------------------------------------------------
U.S. Treasury Notes - 49.7%
2,000 6.375%, 01/15/99 2,001
2,000 6.875%, 08/31/99 2,028
1,000 7.875%, 11/15/99 1,027
2,000 6.250%, 05/31/00 2,043
4,000 5.625%, 11/30/00 4,072
2,000 8.000%, 05/15/01 2,149
2,000 7.875%, 08/15/01 2,158
1,000 6.250%, 10/31/01 1,043
1,000 7.500%, 11/15/01 1,076
1,000 6.250%, 02/28/02 1,046
2,000 5.750%, 04/30/03 2,081
2,000 5.750%, 08/15/03 2,088
3,000 5.875%, 02/15/04 3,165
2,000 7.250%, 05/15/04 2,240
2,000 7.875%, 11/15/04 2,316
2,000 7.500%, 02/15/05 2,290
2,000 6.500%, 05/15/05 2,191
2,000 6.500%, 08/15/05 2,199
2,000 5.875%, 11/15/05 2,136
4,000 5.625%, 02/15/06 4,231
2,000 6.875%, 05/15/06 2,265
2,000 7.000%, 07/15/06 2,282
1,000 6.500%, 10/15/06 1,112
2,000 6.250%, 02/15/07 2,199
2,000 6.625%, 05/15/07 2,253
2,000 6.125%, 08/15/07 2,187
- -------------------------------------------------------------------------------
Total U.S. Treasury Notes (identified cost $52,358) 55,878
- -------------------------------------------------------------------------------
Repurchase Agreement - 3.1%
3,478 Morgan Stanley & Co., Inc., 4.620%, dated 12/31/98, due
01/04/99, repurchase price $3,479,885 (collateralized by
U.S. Treasury obligations, total par value $2,430,000,
9.125%, 05/15/18, total market value $3,543,703) 3,478
- -------------------------------------------------------------------------------
Total Investments (identified cost $107,926) $112,533
- -------------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
23
<PAGE>
------------------------------
Huntington Mortgage Securities Fund December 31, 1998
Huntington Short/Intermediate Fixed Income
Securities Fund
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Federal Home Loan Bank - 5.6%
$2,000 5.485%, 01/21/03 $ 2,027
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation - 29.4%
1,137 Gold 30 Yr., 6.500%, 12/01/25 1,146
2,036 Gold 30 Yr., 7.000%, 04/01/27 2,077
74 Pool # 220007, 8.750%, 08/01/01 76
79 Pool # 380059, 9.500%, 10/01/04 82
1,590 Pool # E65142, 6.500%, 07/01/11 1,614
1,826 Pool # C80391, 7.000%, 03/01/26 1,864
1,578 Pool # D69575, 7.500%, 03/01/26 1,622
1,000 REMIC 1490 PH, 6.250%, 04/15/08 1,013
1,139 REMIC 163-F, 6.000%, 07/15/21 1,102
- -------------------------------------------------------------------------------
10,596
- -------------------------------------------------------------------------------
Federal National Mortgage Association - 45.8%
114 Pool # 303459, 8.000%, 07/01/02 117
127 Pool # 050279, 8.500%, 02/01/05 132
787 Pool # 313817, 6.000%, 07/01/09 790
229 Pool # 250128, 7.500%, 09/01/09 235
1,050 Pool # 338449, 6.000%, 05/01/11 1,054
1,076 Pool # 250554, 6.500%, 05/01/11 1,091
858 Pool # 377783, 6.500%, 04/01/12 870
2,016 Pool # 397835, 6.500%, 09/01/12 2,043
1,389 Pool # 303753, 9.000%, 12/01/20 1,471
998 Pool # 303653, 7.000%, 12/01/25 1,019
1,209 Pool # 339836, 7.000%, 03/01/26 1,234
1,933 Pool # 250551, 7.000%, 05/01/26 1,973
870 Pool # 343212, 7.500%, 05/01/26 895
1,500 REMIC 1998-M1, 6.250%, 01/25/08 1,548
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Federal National Mortgage Association (Continued)
$1,000 REMIC 1996-53, 6.500%, 12/18/11 $ 1,023
1,000 REMIC 1998-44, 6.250%, 04/18/21 1,011
- -------------------------------------------------------------------------------
16,506
- -------------------------------------------------------------------------------
Government National Mortgage Association - 10.9%
28 Pool # 305936, 8.500%, 04/15/06 29
172 Pool # 306058, 8.500%, 06/15/06 179
57 Pool # 328651, 8.500%, 05/15/07 59
382 Pool # 349379, 7.000%, 05/15/08 393
414 Pool # 348112, 7.000%, 06/15/08 425
313 Pool # 344961, 7.000%, 06/15/08 322
1,002 Pool # 200023, 9.500%, 05/15/18 1,084
806 Pool # 780398, 9.000%, 04/15/21 868
538 Pool # 780408, 9.000%, 10/15/22 577
- -------------------------------------------------------------------------------
3,936
- -------------------------------------------------------------------------------
U.S. Treasury Notes - 1.9%
675 6.875%, 07/31/99 683
- -------------------------------------------------------------------------------
Repurchase Agreements - 5.8%
2,099 Morgan Stanley & Co. Inc., 4.620%, dated 12/31/98, due
01/04/99, repurchase price $2,099,977 (collateralized by
U.S. Treasury obligations, total par value $1,660,000,
10.375%, 11/15/09, total market value $2,142,275) 2,099
- -------------------------------------------------------------------------------
Total Investments (identified cost $34,960) $35,847
- -------------------------------------------------------------------------------
</TABLE>
See Notes to Portfolios of Investments page 26.
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds - 74.3%
- -------------------------------------------------------------------------------
Banks and Savings & Loans - 13.0%
$1,000 Bank One, N.A., 7.375%, 12/01/02 $1,062
1,000 Bankers Trust Co., 9.200%, 07/15/99 1,016
1,100 Chase Manhattan Corp., 10.000%, 06/15/99 1,122
1,000 Chemical New York Corp., 9.750%, 06/15/99 1,017
1,000 Citicorp, 9.000%, 04/15/99 1,010
500 Comerica, 9.750%, 05/01/99 506
1,000 Dominion Bankshares, 9.625%, 06/15/99 1,019
1,000 First Chicago, 9.875%, 07/01/99 1,023
500 First Fidelity Bancorp, 9.625%, 08/15/99 513
1,000 First Security Bank Utah, 7.875%, 10/15/99 1,020
1,000 Greenpoint Bank, 6.700%, 07/15/02 1,028
1,000 Harris Bancorp, 9.375%, 06/01/01 1,090
1,000 Homeside Lending, 6.200%, 05/15/03 1,018
500 KeyCorp., 8.400%, 04/01/99 503
1,000 Mellon Corp., 6.300%, 06/01/00 1,015
1,000 Bank America Corp., 8.500%, 03/01/99 1,004
500 Sovran Financial, 9.750%, 06/15/99 510
1,000 Susquehanna Banc, 6.300%, 02/01/03 1,016
- -------------------------------------------------------------------------------
16,492
- -------------------------------------------------------------------------------
Basic Industry - 4.1%
1,000 Akzo Nobel Inc., 6.000%, 11/15/03 1,004
1,000 LaFarge Corp., 9.320%, 04/24/01 1,084
1,000 Praxair, Inc., 6.150%, 04/15/03 999
1,000 Tech Corp., 8.700%, 05/01/02 1,085
1,000 WMX Technologies, Inc., 8.250%, 11/15/99 1,022
- -------------------------------------------------------------------------------
5,194
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- -------------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds (Continued)
- -------------------------------------------------------------------------------
Capital Goods - 0.4%
$ 500 Baker Hughes, Inc., 7.625%, 02/15/99 $ 501
- -------------------------------------------------------------------------------
Consumer Goods & Services - 11.5%
1,000 American Home Products, 7.700%, 02/15/00 1,026
1,000 American Stores, 9.125%, 04/01/02 1,111
500 Autozone Inc., 6.000%, 11/01/03 490
1,000 Cox Communications, Inc., 6.375%, 06/15/00 1,014
1,000 Dayton Hudson, 7.500%, 03/01/99 1,003
1,000 Fortune Brands, Inc., 9.000%, 06/15/99 1,016
1,000 Leggett & Platt, Inc., 6.070%, 03/19/03(f) 1,026
1,000 PepsiCo, Inc., 6.80%, 05/15/00 1,022
1,000 Philip Morris, Inc., 7.375%, 02/15/99 1,003
750 Safeway Stores, Inc., 8.570%, 04/01/03 830
1,000 Sears Roebuck Co., 8.470%, 03/11/02 1,081
1,000 Sony Corp., 6.125%, 03/04/03 1,021
1,000 Super Valu Stores, Inc., 8.875% 06/15/99 1,015
1,000 Tyson Foods, Inc., 6.000%, 01/15/03 1,020
1,000 York International Corp., 6.750%, 03/01/03 1,053
- -------------------------------------------------------------------------------
14,731
- -------------------------------------------------------------------------------
Financial - 10.5%
468 AFG Receivables Trust 97-A, 6.650%, 10/15/02 474
1,000 AT&T Capital Corp., 6.900% 01/30/02 1,004
1,000 American Express Credit, 7.375%, 02/01/99 1,002
1,000 American General Finance, 6.875%, 07/01/99 1,010
1,050 Aristar, Inc., 7.875%, 02/15/99 1,053
1,200 Bear Stearns Co., 7.625%, 09/15/99 1,221
1,000 Chrysler Financial Corp., 13.250%, 10/15/99 1,061
</TABLE>
24
<PAGE>
----------------------
Huntington Short/Intermediate Fixed Income (Continued)
Securities Fund
<TABLE>
- ---------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- ---------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds (Continued)
- ---------------------------------------------------------------------
$ 500 CSW Investments, 6.950%, 08/01/01 $ 514
1,000 Ford Motor Credit Co., 7.750%, 10/01/99 1,019
1,000 General Motors Acceptance Corp., 6.750%, 02/07/02 1,032
1,000 Goldman Sachs Group, 6.875%, 09/15/99(f) 1,012
1,000 Household International, 6.000%, 03/15/99 1,001
1,000 McKesson Finance Canada, 6.550%, 11/01/02 1,022
1,000 Spieker Properties, 6.800%, 12/15/01 1,010
- ---------------------------------------------------------------------
13,435
- ---------------------------------------------------------------------
(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 1,010
- ---------------------------------------------------------------------
2,740
- ---------------------------------------------------------------------
(d) Foreign Sovereign - 2.0%
1,000 Montreal Urban Commission, 9.125%, 03/15/01 1,074
1,500 Province of Quebec, 9.375%, 04/01/99 1,513
- ---------------------------------------------------------------------
2,587
- ---------------------------------------------------------------------
Gas & Electric Utilities - 10.7%
1,000 Atlantic City Electric, 6.000%, 01/15/03 1,017
1,000 Commonwealth Edison, 7.500%, 01/01/01 1,004
1,000 Detroit Edison, 6.560%, 05/01/01 1,030
1,000 Iowa Electric Light & Power, 7.600%, 03/01/99 1,004
1,000 Metropolitan Edison Co., 7.220%, 01/30/03 1,071
1,000 Northwest Natural Gas, 5.550%, 11/12/02 999
1,000 National Rural Utilities, 5.300%, 10/20/03 994
1,350 Penn Power & Light, 6.875%, 02/01/03 1,419
1,000 Public Service of CO, 6.000%, 04/15/03 1,022
1,000 Public Service Electric, 6.875%, 01/01/03 1,058
1,000 Rochester Gas & Electric, 8.250%, 03/15/02 1,081
1,000 Scana Corp., 6.050%, 01/13/03 1,023
1,000 Southern California Edison, 7.500%, 04/15/99 1,006
- ---------------------------------------------------------------------
13,728
- ---------------------------------------------------------------------
Industrial Products - 8.8%
1,000 AAR Corp., 9.500%, 11/01/01 1,109
1,000 Allied Signal, 9.875%, 06/01/02 1,143
1,000 Avnet, 6.450%, 08/15/03 1,026
1,000 Black & Decker Corp., 7.500%, 04/01/03 1,063
1,000 Cooper Industries, Inc., 5.780%, 01/16/03 1,014
1,000 Eastman Kodak, 9.375%, 03/15/03 1,153
1,000 First Data Corp., 6.625%, 04/01/03 1,019
1,000 Ingersoll-Rand Corp., 6.875%, 02/01/03 1,056
1,000 Parker Hannifin Corp., 5.650%, 09/15/03 1,004
1,000 Polaroid Corporation, 6.750%, 01/15/02 966
750 Ultramar Corp., 8.250%, 07/01/99 759
- ---------------------------------------------------------------------
11,312
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------
<CAPTION>
Principal Market
Amount Value
(000) (000)
- ----------------------------------------------------------------------------
<C> <S> <C>
Corporate Bonds (Continued)
- ----------------------------------------------------------------------------
Insurance - 2.4%
$1,000 Continental Corp., 8.250%, 04/15/99 $ 1,007
1,000 Travelers Inc., 7.750%, 06/15/99 1,012
1,000 U.S. Life, 6.375%, 06/15/00 1,010
- ----------------------------------------------------------------------------
3,029
- ----------------------------------------------------------------------------
Oil & Gas - 2.4%
1,000 Anadarko Petroleum Co., 6.750%, 03/15/03 1,040
1,000 Burlington Resources, 7.150%, 05/01/99 1,005
1,000 Elf Aquitaine, 7.750%, 05/01/99 1,007
- ----------------------------------------------------------------------------
3,052
- ----------------------------------------------------------------------------
Telephone Utilities & Communications - 2.4%
1,000 AirTouch Communications, 7.125%, 07/15/01 1,039
1,000 Cable & Wireless, 6.375%, 03/06/03 1,004
1,000 MCI Communications Corp., 6.250%, 03/23/99 1,001
- ----------------------------------------------------------------------------
3,044
- ----------------------------------------------------------------------------
Transportation - 4.0%
1,500 CSX Corp., 9.500%, 08/01/00 1,590
765 Conrail, Inc., 9.750%, 06/01/00 812
1,000 Rollins Truck, 7.000%, 03/15/03 1,032
575 Union Pacific Corp., 7.060%, 05/15/03 615
1,000 Union Pacific Corp., 6.250%, 03/15/99 1,001
- ----------------------------------------------------------------------------
5,050
- ----------------------------------------------------------------------------
Total Corporate Bonds (cost $93,444) 94,895
- ----------------------------------------------------------------------------
Government Bonds - 23.3%
- ----------------------------------------------------------------------------
Government Agencies - 2.4%
3,000 Federal National Mortgage Association, 6.700%, 08/10/01 3,031
- ----------------------------------------------------------------------------
U.S. Treasury Notes - 20.9%
26,000 5.500%, 01/31/03 26,755
- ----------------------------------------------------------------------------
Total Government Bonds (cost $28,915) 29,786
- ----------------------------------------------------------------------------
(a) Commercial Paper - 0.5%
675 Prudential Funding Corp., 4.502%, 01/04/99 675
- ----------------------------------------------------------------------------
Total Commercial Paper (at amortized cost) 675
- ----------------------------------------------------------------------------
Total Investments (cost $123,034) 125,356
- ----------------------------------------------------------------------------
</TABLE>
See Notes To Portfolios of Investments page 26.
25
<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
Authority
AMBAC--American Municipal Bond Assurance Corporation
BANs--Bond Anticipation Notes IDR--Industrial Development
BIG--Bond Investors Guaranty Revenue
CSD--City School District LOC--Letter of Credit
EDA--Economic Development Authority LSD--Local School District
EDR--Educational Development Revenue LTD--Limited
ETM--Escrowed to Maturity MBIA--Municipal Bond Investors
FGIC--Financial Guaranty Insurance Company Assurance
FHLB--Federal Home Loan Bank PERCS--Preferred Equity
FNMA--Federal National Mortgage Association Redemption Cumulative Stock
FSA--Federal Assurance Association PLC--Public Limited Company
RB--Revenue Bond
GNMA--Government National Mortgage Association
GO--General Obligation REMIC--Real Estate Mortgage
HEA--Higher Education Authority Investment Conduit
HEF--Higher Education Facility SDA--School District Authority
HFA--Housing Finance Authority SPA--Standby Purchase Agreement
HRB--Hospital Revenue Bonds SSRB--Sewer System Revenue Bonds
TA--Tax Allocation
TANs--Tax Anticipation Notes
The categories of investments are shown as a percentage of net assets.
VRDNs--Variable Rate Demand
Notes-rates disclosed are in
effect at December 31, 1998.
Maturity date represents final
maturity, not next reset date.
The following is a summary of investment information as of December 31, 1998.
(000)
<TABLE>
<CAPTION>
Cost of
Investments Net Unrealized Gross Gross
for Federal Tax Appreciation/ Unrealized Unrealized Total
Huntington Funds Purposes Depreciation Appreciation Depreciation Net Assets
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Money Market Fund $976,785** 972,914
Ohio Municipal Money
Market Fund 239,146** -- -- -- 253,901
U.S. Treasury Money
Market Fund 533,607** -- -- -- 531,827
Growth Fund 168,559*** 173,817 175,084 (1,267) 339,065
Income Equity Fund 134,393*** 115,559 115,982 (423) 250,936
Michigan Tax-Free Fund 30,541 1,868 1,868 -- 32,759
Ohio Tax-Free Fund 60,455 3,711 3,725 (14) 64,667
Fixed Income Securities
Fund 158,417 8,871 8,942 (71) 170,039
Intermediate Government
Income Fund 107,926 4,607 4,607 -- 112,345
Mortgage Securities Fund 34,960 887 922 (35) 36,059
Short/Intermediate Fixed
Income Securities Fund 123,034 2,322 2,352 (30) 127,715
- ---------------------------------------------------------------------------------------------
</TABLE>
** At amortized cost.
*** Cost for financial reporting purposes differs from cost basis for federal
income tax purposes by the amount of losses recognized for financial
reporting purposes in excess of federal income tax reporting for the Growth
Fund and Income Equity Fund of $1,212,000 and $294,000, respectively. Cost
for federal income tax purposes differs from value by net unrealized
appreciation of securities as shown in the above table.
(See Notes which are an integral part of the Financial Statements)
26
<PAGE>
Concentration of Credit Risk
The Huntington Ohio Municipal Money Market Fund, The Huntington Michigan Tax-
Free Fund, and The Huntington Ohio Tax-Free Fund, invest in debt instruments of
Municipal issuers. The issuers' abilities to meet their obligations may be
affected by economic developments in a specific state or region.
The Funds invest in securities which include revenue bonds, tax exempt
commercial paper, tax and revenue anticipation notes, and general obligation
bonds. At December 31, 1998, the percentage of portfolio investments by each
revenue source were as follows:
The Huntington Ohio Municipal Money Market Fund
<TABLE>
<S> <C>
Revenue Bonds:
Lease Bonds............................................................. 5.0%
Hospital Bonds.......................................................... 19.1%
Housing Bonds........................................................... 0.1%
Health Care Bonds....................................................... 3.8%
Higher Education Bonds.................................................. 13.2%
Industrial Bonds........................................................ 17.0%
Utility Bonds........................................................... 10.6%
General Obligations:..................................................... 31.1%
Cash Equivalents:........................................................ 0.1%
</TABLE>
The Huntington Michigan Tax-Free Fund
<TABLE>
<S> <C>
Revenue Bonds:
Health Care Bonds....................................................... 22.7%
Higher Education Bonds.................................................. 7.9%
Housing Bonds........................................................... 1.4%
Industrial Bonds........................................................ 4.4%
Utility Bonds........................................................... 10.6%
General Obligations:..................................................... 51.0%
Cash Equivalents:........................................................ 2.0%
</TABLE>
The Huntington Ohio Tax-Free Fund
<TABLE>
<S> <C>
Revenue Bonds:
Lease Bonds............................................................. 3.9%
Hospital Bonds.......................................................... 8.4%
Health Care Bonds....................................................... 1.2%
Higher Education Bonds.................................................. 11.2%
Highway Bonds........................................................... 3.2%
Industrial Bonds........................................................ 0.5%
Utility Bonds........................................................... 10.3%
General Obligations:..................................................... 61.3%
</TABLE>
27
<PAGE>
Statements of Assets & Liabilities
December 31, 1998
<TABLE>
<CAPTION>
Huntington Huntington
Huntington Ohio Municipal U.S. Treasury
Money Market Money Market Money Market
Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments at value................ $925,934 $239,146 $273,268
Investments in repurchase 50,851 -- 260,339
agreements.........................
Cash................................ -- -- --
Dividends and interest receivable... 68 1,434 316
Receivable for investments sold..... -- -- --
Receivable for fund shares sold..... 25 -- 1
Other............................... -- 9 --
- ---------------------------------------------------------------------------------
Total Assets 976,878 240,589 533,924
- ---------------------------------------------------------------------------------
Liabilities:
Payable for investments purchased... -- 4,009 --
Payable for fund shares redeemed.... 163 1 --
Dividend payable.................... 3,340 564 1,876
Accrued expenses
Investment advisory fees............ 231 66 90
Administration personnel and 93 24 49
services...........................
Custodian and recordkeeping fees and 51 12 25
expenses...........................
Distribution service fees-- 26 12 5
Investment Shares..................
Other............................... 60 -- 52
- ---------------------------------------------------------------------------------
Total Liabilities.................. 3,964 4,688 2,097
- ---------------------------------------------------------------------------------
Net Assets:
Paid-in-capital..................... 973,003 235,913 531,827
Net unrealized appreciation -- -- --
(depreciation) of investments......
Accumulated net realized gain (loss) (89) (12) --
on investments.....................
Distributions in excess of net -- -- --
realized gain on investments.......
Undistributed net investment income. -- -- --
- ---------------------------------------------------------------------------------
Total Net Assets................... 972,914 235,901 531,827
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
Net Assets:
Trust Shares........................ 700,540 102,606 477,305
Investment Shares................... 272,374 133,295 54,522
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........................ 700,572 102,613 477,251
Investment Shares................... 272,431 133,300 54,579
- ---------------------------------------------------------------------------------
Total shares outstanding ($0.001 par 973,003 235,913 531,830
value).............................
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
Investments, at identified cost..... $976,785 $239,146 $533,607
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
(All numbers in thousands except net asset values)
*Computation of Offering price: 100/96 of net asset value.
**Computation of Offering price: 100/98 of net asset value.
***Computation of Offering price: 100/94.5 of net asset value.
(See Notes which are an integral part of the Financial Statements)
Statements of Operations
Year Ended December 31, 1998
(All numbers in thousands)
<CAPTION>
Huntington Huntington
Huntington Ohio Municipal U.S. Treasury
Money Market Money Market Money Market
Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest income $ 41,734 $ 6,922 $ 28,575
Dividend income -- -- --
- ---------------------------------------------------------------------------------
Total income 41,734 6,922 28,575
- ---------------------------------------------------------------------------------
Expenses:
Investment advisory fees 2,150 595 1,090
Administrative personnel and 836 218 599
services
Custodian and recordkeeping fees and 426 111 305
expenses
Transfer and dividend disbursing 137 44 45
agent fees and expenses
Fund share registration costs 107 27 42
Auditing fees 32 8 25
Legal fees 17 5 17
Trustees' fees 13 3 10
Printing and postage 53 12 37
Insurance premiums 9 2 14
Distribution services fees 555 285 145
Miscellaneous 11 1 7
- ---------------------------------------------------------------------------------
Total expenses 4,346 1,311 2,336
- ---------------------------------------------------------------------------------
Deduct--
Waiver of investment advisory fees -- (99) --
Waiver of distribution services fees (333) (171) (87)
- ---------------------------------------------------------------------------------
Net Expenses 4,013 1,041 2,249
- ---------------------------------------------------------------------------------
Net Investment Income 37,721 5,881 26,326
- ---------------------------------------------------------------------------------
Realized and unrealized gain (loss)
on investments
Net realized gain (loss) on -- -- --
investments (identified cost basis)
Net change in unrealized -- -- --
appreciation (depreciation) on
investments
- ---------------------------------------------------------------------------------
Net Realized and Unrealized Gain -- -- --
(Loss) on Investments
- ---------------------------------------------------------------------------------
Change in Net Assets Resulting from $ 37,721 $ 5,881 $ 26,326
Operations
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
28
<PAGE>
<TABLE>
<CAPTION>
Huntington
Huntington Huntington Huntington Huntington Short /Intermediate
Huntington Income Ohio Fixed Income Mortgage Fixed Income
Growth Equity Tax-Free Securities Securities Securities
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$342,376 $249,952 $64,166 $167,288 $33,748 $125,356
-- -- -- -- 2,099 --
-- -- 31 -- -- --
276 1,059 504 2,955 256 2,424
-- -- -- -- 5 --
239 84 -- 6 -- 5
-- 2 3 9 1 3
- ---------------------------------------------------------------------------------
342,891 251,097 64,704 170,258 36,109 127,788
- ---------------------------------------------------------------------------------
3,573 -- -- -- -- --
-- -- -- 122 31 --
-- -- -- -- -- --
169 126 28 73 9 55
31 22 6 16 4 12
16 12 3 8 6 6
6 1 -- -- -- --
31 -- -- -- -- --
- ---------------------------------------------------------------------------------
3,826 161 37 219 50 73
- ---------------------------------------------------------------------------------
165,222 134,994 60,954 161,167 58,824 125,393
175,029 115,853 3,711 8,871 887 2,322
-- 1 -- -- (23,673) --
(1,212) -- -- -- -- --
26 88 2 1 21 --
- ---------------------------------------------------------------------------------
339,065 250,936 64,667 170,039 36,059 127,715
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
322,564 249,051 63,148 168,453 34,991 127,715
16,501 1,885 1,519 1,586 1,068 N/A
$ 49.78 $ 40.85 $ 21.83 $ 21.78 $ 8.25 $ 20.13
$ 49.76 $ 40.86 $ 21.82 $ 21.78 $ 8.27 N/A
$ 49.78 $ 40.85 $ 21.83 $ 21.78 $ 8.25 $ 20.13
$ 51.83* $ 43.24*** $ 22.27** $ 22.22** $ 8.44** N/A
6,479 6,098 2,893 7,734 4,241 6,344
332 46 70 73 129 N/A
- ---------------------------------------------------------------------------------
6,811 6,144 2,963 7,807 4,370 6,344
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
$167,347 $134,099 $60,455 $158,417 $34,960 $123,034
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
<CAPTION>
Huntington
Huntington Huntington Huntington Huntington Short/Intermediate
Huntington Income Ohio Fixed Income Mortgage Fixed Income
Growth Equity Tax-Free Securities Securities Securities
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,099 $ 2,510 $ 3,490 $ 10,588 $ 2,567 $ 8,252
3,255 5,951 -- -- -- --
- ---------------------------------------------------------------------------------
4,354 8,461 3,490 10,588 2,567 8,252
- ---------------------------------------------------------------------------------
1,850 1,396 333 817 191 646
339 256 73 180 42 142
173 130 37 91 42 72
30 44 32 31 24 23
12 21 9 18 15 15
3 10 1 1 -- 1
-- 3 1 4 -- 3
5 4 -- 2 -- 2
14 16 1 3 2 6
13 3 1 1 -- 2
33 2 4 4 5 --
1 3 1 1 1 2
- ---------------------------------------------------------------------------------
2,473 1,888 493 1,153 322 914
- ---------------------------------------------------------------------------------
-- -- -- -- (76) --
-- -- -- -- (3) --
- ---------------------------------------------------------------------------------
2,473 1,888 493 1,153 243 914
- ---------------------------------------------------------------------------------
1,881 6,573 2,997 9,435 2,324 7,338
- ---------------------------------------------------------------------------------
8,243 4,307 68 2,181 19 1,670
37,083 27,275 315 2,837 35 (88)
- ---------------------------------------------------------------------------------
45,326 31,582 383 5,018 54 1,582
- ---------------------------------------------------------------------------------
$ 47,207 $ 38,155 $ 3,380 $ 14,453 $ 2,378 $ 8,920
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
Statements of Assets and Liabilities
December 31, 1998
(All numbers in thousands, except net asset values)
<TABLE>
<CAPTION>
Huntington Michigan Huntington Intermediate
Tax-Free Fund Government Income Fund
- ------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments at value $32,409 $109,055
Investments in repurchase
agreements -- 3,478
Cash 1 --
Dividends and interest receiv-
able 425 1,509
Receivable for investments
sold -- --
Receivable for fund shares
sold -- 8
Other -- 20
- ------------------------------------------------------------------------------
Total Assets 32,835 114,070
- ------------------------------------------------------------------------------
Liabilities:
Payable for Fund shares re-
deemed -- 1,659
Payable for securities pur-
chased 10 --
Accrued Expenses:
Investment Advisory Fees 12 43
Administrative personnel and
services 3 9
Custodian and recordkeeping
fess and expenses 12 12
Distribution service fees --
Investment Shares 5 2
Other 34 --
- ------------------------------------------------------------------------------
Total Liabilities 76 1,725
- ------------------------------------------------------------------------------
Net Assets:
Paid-in-capital 30,891 109,427
Net unrealized appreciation
(depreciation) of investments 1,868 4,607
Accumulated net realized gain
(loss) on investments -- (1,719)
Undistributed net investment
income -- 30
- ------------------------------------------------------------------------------
Total Net Assets 32,759 112,345
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net Assets:
Trust Shares 23,995 109,261
Investment Shares 8,764 3,084
- ------------------------------------------------------------------------------
Net Asset Value and Redemption
Proceeds Per Share:
Trust Shares $ 10.99 $ 10.42
Investment Shares $ 10.99 $ 10.42
- ------------------------------------------------------------------------------
Offering Price Per Share:
Trust Shares $ 10.99 $ 10.42
Investment Shares $ 11.21** $ 10.63**
- ------------------------------------------------------------------------------
Shares Outstanding:
Trust Shares 2,183 10,486
Investment Shares 797 296
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Total shares outstanding
($0.001 par value) 2,980 10,782
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Investments, at identified
cost $30,541 $107,926
</TABLE>
**Computation of Offering price: 100/98 of net asset value.
Statements of Operations
<TABLE>
<CAPTION>
Huntington Michigan Huntington Intermediate
Tax-Free Fund Government Income Fund
Seven Months *Six Months Seven Months *Six Months
Ended Ended Ended Ended
December31, May 31, December 31, May 31,
1998 1998 1998 1998
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income............ $1,071 $944 $4,195 $3,803
- -------------------------------------------------------------------------------
Total income............... 1,071 944 4,195 3,803
- -------------------------------------------------------------------------------
Expenses:
Investment advisory fees... 102 93 345 276
Administrative personnel
and services.............. 23 31 5 102
Custodian and recordkeeping
fees and expenses......... 11 3 76 20
Transfer and dividend
disbursing agent fees and
expenses.................. 2 16 39 34
Fund share registration
costs..................... -- 1 18 2
Auditing fees.............. 7 1 7 --
Legal fees................. -- 5 4 --
Trustees' fees............. -- 3 1 7
Printing and postage....... 4 1 3 12
Insurance premiums......... 2 2 2 1
Distribution services
fees -- Investment Shares. 14 16 5 5
Miscellaneous.............. -- 3 12 5
- -------------------------------------------------------------------------------
Total expenses............. 165 175 517 464
- -------------------------------------------------------------------------------
Deduct--
Waiver of investment
advisory fees............. (14) (26) (35) (9)
Waiver of distribution
services fees............. -- (3) -- (1)
- -------------------------------------------------------------------------------
Net expenses................ 151 146 482 454
- -------------------------------------------------------------------------------
Net investment income....... 920 798 3,713 3,349
- -------------------------------------------------------------------------------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) on
investments (identified
cost basis)................ 145 -- (7) (4)
Net change in unrealized
appreciation (depreciation)
on investments............. 75 191 2,433 528
- -------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments. 220 191 2,426 524
- -------------------------------------------------------------------------------
Change in net assets
resulting from operations.. $1,140 $989 $6,139 $3,873
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
*Combined data from Fund prior to and after Reorganization referred to in Note
(1) Organization.
30
<PAGE>
[This Page Intentionally Left Blank]
31
<PAGE>
Statements of Changes In Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
Huntington
Huntington Ohio U.S. Treasury
Huntington Money Municipal Money Money Market Huntington Growth
Market Fund Market Fund Fund Fund
*Year Year Year Year Year Year *Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
December 31, Dec. 31, December 31, Dec. 31, December 31, Dec. 31, December 31, Dec. 31,
1998 1997 1998 1997 1998 1997 1998 1997
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations--
Net investment income $ 37,721 $ 24,203 $ 5,881 $ 4,382 $ 26,326 $ 27,222 $ 1,881 $ 1,507
Net realized gain (loss)
on investment
transactions -- -- -- -- -- -- 8,243 11,145
Change in net unrealized
appreciation
(depreciation) of
investments -- -- -- -- -- -- 37,083 50,540
- --------------------------------------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 37,721 24,203 5,881 4,382 26,326 27,222 47,207 63,192
- --------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders--
From net investment income:
Trust Shares (26,860) (18,452) (2,560) (2,112) (23,572) (24,783) (1,815) (1,480)
Investment Shares (10,861) (5,751) (3,321) (2,270) (2,754) (2,439) (47) (24)
- --------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments:
Trust Shares -- -- -- -- -- -- (7,850) (10,892)
Investment Shares -- -- -- -- -- -- (393) (253)
- --------------------------------------------------------------------------------------------------------------------------
In excess of net
realized gain on
investments:
Trust Shares -- -- -- -- -- -- (1,154) --
Investment Shares -- -- -- -- -- -- (58) --
- --------------------------------------------------------------------------------------------------------------------------
Change in net assets
from distributions to
shareholders (37,721) (24,203) (5,881) (4,382) (26,326) (27,222) (11,317) (12,649)
- --------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions--
Trust Shares:
Proceeds from shares
issued from merger 143,355 N/A N/A N/A N/A N/A 64,133 N/A
Proceeds from shares
issued 836,084 642,026 134,841 127,512 950,040 1,193,708 24,689 21,218
Reinvestment of
distributions 21 15 -- -- 73 27 3,916 4,292
Cost of shares redeemed (703,021) (555,953) (104,903) (111,499) (956,412) (1,184,780) (33,300) (22,496)
- --------------------------------------------------------------------------------------------------------------------------
Total Trust Shares
Transactions 276,439 86,088 29,938 16,013 (6,299) 8,955 59,438 3,014
- --------------------------------------------------------------------------------------------------------------------------
Investment Shares:
Proceeds from shares
issued from merger 11,004 N/A N/A N/A N/A N/A 9,965 N/A
Proceeds from shares
issued 437,013 212,817 252,320 150,492 209,121 150,381 1,549 536
Reinvestment of
distributions 6,446 4,422 376 349 847 930 493 274
Cost of shares redeemed (322,423) (174,411) (202,297) (142,046) (213,148) (141,437) (1,893) (793)
- --------------------------------------------------------------------------------------------------------------------------
Total Investment Shares
Transactions 132,040 42,828 50,399 8,795 (3,180) 9,874 10,114 17
- --------------------------------------------------------------------------------------------------------------------------
Change in net assets
from fund shares
transactions 408,479 128,916 80,337 24,808 (9,479) 18,829 69,552 3,031
- --------------------------------------------------------------------------------------------------------------------------
Total change in Net
Assets 408,479 128,916 80,337 24,808 (9,479) 18,829 105,442 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 $ 972,914 $ 564,435 $ 235,901 $ 155,564 $ 531,827 $ 541,306 $339,065 $233,623
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income
included in net assets
at end of period $ -- $ -- $ -- $ -- $ -- $ -- $ 26 $ 7
- --------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed--
Trust Shares:
Shares issued from
merger 143,581 N/A N/A N/A N/A N/A 1,330 N/A
Shares issued 835,940 642,026 134,841 127,512 950,040 1,193,708 521 546
Reinvestment of
distributions 22 15 -- -- 73 27 82 102
Shares redeemed (703,021) (555,953) (104,903) (111,499) (956,412) (1,184,780) (701) (576)
- --------------------------------------------------------------------------------------------------------------------------
Total Trust Shares
Transactions 276,522 86,088 29,938 16,013 (6,299) 8,955 1,232 72
- --------------------------------------------------------------------------------------------------------------------------
Investment Shares:
Shares issued from
merger 11,010 N/A N/A N/A N/A N/A 202 N/A
Shares issued 437,013 212,817 252,320 150,492 209,121 150,381 33 14
Reinvestment of
distributions 6,446 4,422 376 349 847 930 11 6
Shares redeemed (322,423) (174,411) (202,297) (142,046) (213,148) (141,437) (40) (20)
- --------------------------------------------------------------------------------------------------------------------------
Total Investment Shares
Transactions 132,046 42,828 50,399 8,795 (3,180) 9,874 206 --
- --------------------------------------------------------------------------------------------------------------------------
Net change in fund share
transactions 408,568 128,916 80,337 24,808 (9,479) 18,829 1,438 72
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
*Combined data from Fund prior to and after Reorganization referred to in Note
(1)
32
<PAGE>
<TABLE>
<CAPTION>
Huntington Short/
Huntington Huntington Fixed Huntington Intermediate Fixed
Income Huntington Ohio Income Securities Mortgage Income Securities
Equity Fund Tax-Free Fund Fund Securities Fund Fund
Year Year Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended
December 31 Dec. 31 December 31 Dec. 31 December 31 Dec. 31 December 31 Dec. 31, December 31 Dec. 31
1998 1997 1998 1997 1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 6,573 $ 6,038 $ 2,997 $ 3,089 $ 9,435 $ 9,330 $ 2,324 $ 2,611 $ 7,338 $ 7,399
4,307 3,824 68 24 2,181 1,205 19 303 1,670 (337)
27,275 35,379 315 736 2,837 2,141 35 484 (88) 819
- ------------------------------------------------------------------------------------------------------------------
38,155 45,241 3,380 3,849 14,453 12,676 2,378 3,398 8,920 7,881
- ------------------------------------------------------------------------------------------------------------------
(6,527) (6,057) (2,943) (3,029) (9,390) (9,200) (2,266) (2,454) (7,352) (7,408)
(20) (2) (65) (78) (89) (103) (63) (82) -- --
- ------------------------------------------------------------------------------------------------------------------
(4,275) (3,819) (66) (18) (2,141) -- -- -- (956) --
(31) (5) (2) -- (20) -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- -- -- --
-- -- -- -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
(10,853) (9,883) (3,076) (3,125) (11,640) (9,303) (2,329) (2,536) (8,308) (7,408)
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
21,506 19,581 8,440 7,624 21,544 20,505 2,881 2,800 9,438 15,526
3,497 3,169 169 185 4,761 3,660 180 187 3,814 3,348
(17,765) (16,240) (10,084) (8,988) (14,012) (18,168) (5,175) (6,332) (12,994) (18,016)
- ------------------------------------------------------------------------------------------------------------------
7,238 6,510 (1,475) (1,179) 12,293 5,997 (2,114) (3,345) 258 858
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
1,508 263 352 124 265 93 53 13 N/A N/A
49 7 48 61 84 76 45 55 N/A N/A
(65) (1) (355) (636) (405) (439) (113) (678) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
1,492 269 45 (451) (56) (270) (15) (610) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
8,730 6,779 (1,430) (1,630) 12,237 5,727 (2,129) (3,955) 258 858
- ------------------------------------------------------------------------------------------------------------------
36,032 42,137 (1,126) (906) 15,050 9,100 (2,080) (3,093) 870 1,331
- ------------------------------------------------------------------------------------------------------------------
214,904 172,767 65,793 66,699 154,989 145,889 38,139 41,232 126,845 125,514
- ------------------------------------------------------------------------------------------------------------------
$250,936 $214,904 $64,667 $65,793 $170,039 $154,989 $36,059 $38,139 $127,715 $126,845
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
$ 88 $ 40 $ 2 $ 13 $ 1 $ 44 $ 21 $ 75 $ -- $ 14
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N./A N/A N/A N/A N/A
555 595 388 355 995 979 348 347 468 780
89 93 8 8 219 175 22 23 189 168
(460) (485) (462) (420) (645) (868) (627) (779) (643) (906)
- ------------------------------------------------------------------------------------------------------------------
184 203 (66) (57) 569 286 (257) (409) 14 42
- ------------------------------------------------------------------------------------------------------------------
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
39 8 16 6 12 4 7 2 N/A N/A
1 -- 2 3 4 4 5 7 N/A N/A
(2) -- (16) (29) (18) (21) (14) (84) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
38 8 2 (20) (2) (13) (2) (75) N/A N/A
- ------------------------------------------------------------------------------------------------------------------
222 211 (64) (77) 567 273 (259) (484) 14 42
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
Statements of Changes In Net Assets
(All numbers in thousands)
<TABLE>
<CAPTION>
Huntington Michigan Huntington Intermediate
Tax-Free Fund Government Income Fund
Seven *Six Seven *Six
Months Months Year Months Months Year
Ended Ended Ended Ended Ended Ended
December 31, May 31, Nov. 30, December 31, May 31, Nov. 30,
1998 1998 1997 1998 1998 1997
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets
Operations-
Net investment income $ 920 $ 798 $ 1,553 $ 3,713 $ 3,349 $ 6,737
Net realized gain (loss)
on investment
transactions 145 -- 31 (7) (4) 51
Change in net unrealized
appreciation
(depreciation) of
investments 75 191 297 2,433 528 258
- ------------------------------------------------------------------------------------------
Change in net assets
resulting from
operations 1,140 989 1,881 6,139 3,873 7,046
- ------------------------------------------------------------------------------------------
Distributions to
Shareholders From--
Net investment income:
Trust Shares (731) (541) (1,147) (3,854) (2,988) (6,370)
Investment Shares (253) (193) (408) (102) (84) (244)
Net realized gain on
investments:
Trust Shares (54) -- -- -- -- --
Investment Shares (20) -- -- -- -- --
Capital:
Trust Shares -- -- -- -- -- --
Investment Shares -- -- -- -- -- --
- ------------------------------------------------------------------------------------------
Change in net assets
from distributions to
shareholders (1,058) (734) (1,555) (3,956) (3,072) (6,614)
- ------------------------------------------------------------------------------------------
Capital Share
Transactions-
Trust Shares:
Proceeds from Shares
Issued 1,206 4,477 4,758 12,297 12,229 24,530
Reinvestment of
Distributions 32 7 -- 558 83 4
Cost of Shares Redeemed (4,740) (2,184) (3,128) (22,036) (11,835) (17,950)
- ------------------------------------------------------------------------------------------
Total Trust Shares
Transactions (3,502) 2,300 1,630 (9,181) 477 6,584
- ------------------------------------------------------------------------------------------
Investment Shares:
Proceeds from Shares
Issued 114 1,116 1,729 11 22 104
Reinvestment of
Distributions 217 172 301 82 78 193
Cost of Shares Redeemed (1,538) (837) (1,738) (284) (426) (2,008)
- ------------------------------------------------------------------------------------------
Total Investment Shares
Transactions (1,207) 451 292 (191) (326) (1,711)
- ------------------------------------------------------------------------------------------
Change in net assets
from Fund shares
transactions (4,709) 2,751 1,922 (9,372) 151 4,873
- ------------------------------------------------------------------------------------------
Total change in Net
Assets (4,627) 3,006 2,248 (7,189) 952 5,305
- ------------------------------------------------------------------------------------------
Net Assets:
Beginning of period 37,386 34,380 32,132 119,534 118,582 113,277
- ------------------------------------------------------------------------------------------
End of period $32,759 $37,386 $34,380 $112,345 $119,534 $118,582
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
Undistributed net
investment income
included in net assets
at end of period $ -- $ 64 $ -- $ 30 $ 273 $ (4)
- ------------------------------------------------------------------------------------------
Shares Issued and
Redeemed--
Trust Shares:
Shares issued 109 409 443 1,186 1,198 2,439
Reinvestment of
Distributions 3 1 -- 54 8 --
Shares redeemed (431) (200) (290) (2,121) (1,160) (1,784)
- ------------------------------------------------------------------------------------------
Total Trust Shares
Transactions (319) 210 153 (881) 46 655
- ------------------------------------------------------------------------------------------
Investment Shares:
Shares issued 10 101 161 1 2 10
Reinvestment of
Distributions 20 16 28 8 8 19
Shares redeemed (140) (76) (162) (27) (42) (200)
- ------------------------------------------------------------------------------------------
Total Investment Shares
Transactions (110) 41 27 (18) (32) (171)
- ------------------------------------------------------------------------------------------
Net change in Fund share
transactions (429) 251 180 (899) 14 484
- ------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
*Combined data from Fund prior to and after Reorganization referred to in Note
(1) Organization.
34
<PAGE>
[This Page Intentionally Left Blank]
35
<PAGE>
Financial Highlights
Money Market Funds
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Distributions to
Net Asset shareholders Net Asset
Value, Net from net Value
Year Ended beginning investment investment end of Total
December 31, of period income income period return(a)
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TRUST SHARES
Huntington Money Market Fund
1998 $1.00 0.05 (0.05) $1.00 5.13%
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%
Huntington Ohio Municipal Money
Market Fund
1998 $1.00 0.03 (0.03) $1.00 3.07%
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%
Huntington U.S. Treasury Money
Market Fund
1998 $1.00 0.05 (0.05) $1.00 4.95%
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%
INVESTMENT SHARES
Huntington Money Market Fund
1998 $1.00 0.05 (0.05) $1.00 5.03%
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%
Huntington Ohio Municipal Money
Market Fund
1998 $1.00 0.03 (0.03) $1.00 2.97%
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%
Huntington U.S. Treasury Money
Market Fund
1998 $1.00 0.05 (0.05) $1.00 4.85%
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%
-------------------------------------------------------------------------
</TABLE>
(a) Based on net asset value, which does not reflect the sales load, if
applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(See Notes which are an integral part of the Financial Statements)
36
<PAGE>
<TABLE>
<CAPTION>
Ratio to average net assets
-------------------------------------------------------------
Net Expense Net assets,
investment waiver reduction/ end of period
Expenses income reimbursement(b) (000 omitted)
-------------------------------------------------------------------------------------
<S> <C> <C> <C>
0.50% 4.99% -- $700,540
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
0.47% 3.03% 0.05% $102,606
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
0.40% 4.84% -- $447,305
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
0.60% 4.89% 0.15% $272,374
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
0.57% 2.93% 0.20% $133,295
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
0.50% 4.74% 0.15% $ 54,522
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
-------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
Financial Highlights
Equity Funds
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Distributions to Distributions to
Net realized Distributions to shareholders shareholders in
Net Asset and shareholders from net excess of net
Year Ended Value, Net unrealized Total from from net realized gain realized gain on
December beginning investment gain/(loss) on investment investment on investment investment
31, of period income investments operations income transactions transactions
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Huntington Growth Fund
1998 $43.48 0.29 7.69 7.98 (0.29) (1.21) (0.18)
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) --
Huntington Income Equity Fund
1998 $36.30 1.09 5.26 6.35 (1.09) (0.71) --
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) -- --
INVESTMENT SHARES
Huntington Growth Fund
1998 $43.46 0.19 7.67 7.86 (0.17) (1.21) (0.18)
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) --
Huntington Income Equity Fund
1998 $36.29 0.98 5.29 6.27 (0.99) (0.71) --
1997(a) $31.20 0.65 5.72 6.37 (0.63) (0.65) --
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Reflects operations for the period from May 1, 1997 (effective date of
Investment Shares) to December 31, 1997.
(b)Based on net asset value, which does not reflect the sales load, if
applicable.
(c) Computed on annualized basis.
(d)This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(e) Not annualized.
(See Notes which are an integral part of the Financial Statements)
38
<PAGE>
<TABLE>
<CAPTION>
Ratio to average net assets
Net Asset ---------------------------------------
Value Net Expense waiver Net assets, Portfolio
Total end of Total investment reduction/ end of period turnover
distributions period return(b) Expenses income reimbursement(d) (000 omitted) rate
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(1.68) $49.78 18.55% 0.79% 0.62% -- $322,564 11%
(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%
(1.80) $40.85 17.79% 0.81% 2.83% -- $249,051 13%
(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%
(1.56) $49.76 18.25% 1.04% 0.37% -- $ 16,501 11%
(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%
(1.70) $40.86 17.56% 1.06% 2.58% -- $ 1,885 13%
(1.28) $36.29 16.09%(e) 1.08%(c) 2.76%(c) -- $ 279 24%
- ----------------------------------------------------------------------------------------------------
</TABLE>
39
<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 Huntington Ohio Tax-Free Fund
<S> <C> <C> <C> <C> <C> <C>
1998 $ 21.74 0.98 0.11 1.09 (0.98) (0.02)
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) --
<CAPTION>
The Huntington Fixed Income Securities Fund
<S> <C> <C> <C> <C> <C> <C>
1998 $ 21.41 1.26 0.65 1.91 (1.26) (0.28)
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) --
<CAPTION>
The Huntington Mortgage Securities Fund
<S> <C> <C> <C> <C> <C> <C>
1998(a) $ 8.24 0.50 0.01 0.51 (0.50) --
1997(e) $ 8.06 0.52 0.16 0.68 (0.50) --
1996(e) $ 8.09 0.55 (0.04) 0.51 (0.54) --
1995(e) $ 6.69 0.55 1.46 2.01 (0.55) --
1994(e) $ 9.93 0.89 (3.19) (2.30) (0.93) --
<CAPTION>
The Huntington Short/Intermediate Fixed Income Securities Fund
<S> <C> <C> <C> <C> <C> <C>
1998 $ 20.04 1.15 0.24 1.39 (1.15) (0.15)
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) --
<CAPTION>
INVESTMENT SHARES
The Huntington Ohio Tax-Free Fund
<S> <C> <C> <C> <C> <C> <C>
1998 $ 21.73 0.93 0.11 1.04 (0.93) (0.02)
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) --
<CAPTION>
The Huntington Fixed Income Securities Fund
<S> <C> <C> <C> <C> <C> <C>
1998 $ 21.41 1.20 0.66 1.86 (1.21) (0.28)
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) --
<CAPTION>
The Huntington Mortgage Securities Fund
<S> <C> <C> <C> <C> <C> <C>
1998(a) $ 8.26 0.48 0.01 0.49 (0.48) --
1997(e) $ 8.08 0.50 0.17 0.67 (0.49) --
1996(e) $ 8.12 0.53 (0.04) 0.49 (0.53) --
1995(e) $ 6.70 0.55 1.46 2.01 (0.55) --
1994(e) $ 9.94 0.87 (3.19) (2.32) (0.91) --
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Distributions
in excess
of net
Year Ended investment
December 31, income(b)
- -----------------------------------------------------------------------------------------------------------------------------
TRUST SHARES
The Huntington Ohio Tax-Free Fund
<S> <C>
1998 --
1997 --
1996 --
1995 --
1994 --
<CAPTION>
The Huntington Fixed Income Securities Fund
<S> <C>
1998 --
1997 --
1996 --
1995 --
1994 --
<CAPTION>
The Huntington Mortgage Securities Fund
<S> <C>
1998(a) --
1997(e) --
1996(e) --
1995(e) (0.06)
1994(e) (0.01)
<CAPTION>
The Huntington Short/Intermediate Fixed Income Securities Fund
<S> <C>
1998 --
1997 --
1996 --
1995 --
1994 --
<CAPTION>
INVESTMENT SHARES
The Huntington Ohio Tax-Free Fund
<S> <C>
1998 --
1997 --
1996 --
1995 --
1994 --
<CAPTION>
The Huntington Fixed Income Securities Fund
<S> <C>
1998 --
1997 --
1996 --
1995 --
1994 --
<CAPTION>
The Huntington Mortgage Securities Fund
<S> <C>
1998(a) --
1997(e) --
1996(e) --
1995(e) (0.04)
1994(e) (0.01)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Effective April 24, 1998, Piper Capital Management, Inc. ceased to serve
as the subadviser for Mortgage Securities Fund.
(b) Distributions in excess of net investment income were the result of
certain book and tax timing differences. These distributions did not
represent a return of capital for federal income tax purposes.
(c) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(e) Per share information presented is based upon the monthly average number
of shares outstanding due to large fluctuations in the number of shares
outstanding during the period.
(See Notes which are an integral part of the Financial Statements)
40
<PAGE>
<TABLE>
<CAPTION>
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(c) Expenses income reimbursement(d) omitted) rate
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(1.00) $21.83 5.16% 0.73% 4.50% -- $ 63,148 9%
(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%
(1.54) $21.78 9.18% 0.70% 5.78% -- $168,453 47%
(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%
(0.50) $ 8.25 6.41% 0.63% 6.09% 0.20% $ 34,991 17%
(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%
(1.30) $20.13 7.13% 0.71% 5.68% -- $127,715 61%
(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%
(0.95) $21.82 4.90% 0.98% 4.25% -- $ 1,519 9%
(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%
(1.49) $21.78 8.93% 0.95% 5.53% -- $ 1,586 47%
(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%
(0.48) $ 8.27 6.09% 0.88% 5.84% 0.45% $ 1,068 17%
(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%
- -------------------------------------------------------------------------------------------------
</TABLE>
41
<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
Beginning Investment Gain/(Loss) on Investment Investment on Investment
Period Ended(a) of Period Income Investments Operations Income Transactions
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TRUST SHARES
Huntington Michigan Tax-Free Fund
1998(b) $10.97 0.29 0.06 0.35 (0.31) (0.02)
1998(c) $10.89 0.25 0.06 0.31 (0.23) --
1997(d) $10.79 0.50 0.10 0.60 (0.50) --
1996(d) $10.79 0.50 -- 0.50 (0.50) --
1995(d) $ 9.97 0.49 0.82 1.31 (0.49) --
1994(d) $10.61 0.47 (0.63) (0.16) (0.47) (0.01)
Huntington Intermediate Government Income Fund
1998(b) $10.23 0.33 0.21 0.54 (0.35) --
1998(c) $10.16 0.29 0.04 0.33 (0.26) --
1997(d) $10.13 0.59 0.02 0.61 (0.58) --
1996(d) $10.24 0.59 (0.10) 0.49 (0.60) --
1995(d) $ 9.66 0.61 0.58 1.19 (0.61) --
1994(d) $10.46 0.57 (0.80) (0.23) (0.57) --
INVESTMENT SHARES
Huntington Michigan Tax-Free Fund
1998(b) $10.97 0.28 0.06 0.34 (0.30) (0.02)
1998(c) $10.89 0.24 0.06 0.30 (0.22) --
1997(d) $10.79 0.47 0.10 0.57 (0.47) --
1996(d) $10.79 0.48 -- 0.48 (0.48) --
1995(d) $ 9.97 0.49 0.82 1.31 (0.49) --
1994(d) $10.61 0.47 (0.63) (0.16) (0.47) (0.01)
Huntington Intermediate Government Income Fund
1998(b) $10.24 0.31 0.20 0.51 (0.33) --
1998(c) $10.16 0.28 0.05 0.33 (0.25) --
1997(d) $10.13 0.57 0.02 0.59 (0.56) --
1996(d) $10.24 0.57 (0.10) 0.47 (0.58) --
1995(d) $ 9.66 0.61 0.58 1.19 (0.61) --
1994(d) $10.46 0.57 (0.80) (0.23) (0.57) --
- -------------------------------------------------------------------------------------------------
</TABLE>
(a) Financial highlights reflect combined data from Fund prior to and after
Reorganization for the surviving accounting entity. The fiscal year end of
Huntington Michigan Tax-Free Fund and Huntington Intermediate Government
Income Fund was changed from November 30 to May 31, and subsequently to
December 31 to coincide with the other Huntington Funds.
(b) Seven months ended December 31.
(c) Six months ended May 31.
(d) Year ended November 30.
(e) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(f) Expense ratios reflect the operating expenses in effect during the period
prior to and subsequent to the reorganization referred to in Notes (1)
Organization.
(g) This voluntary expense decrease is reflected in both the expense and net
investment income ratios.
(h) Computed on an annualized basis.
(i) Not annualized.
42
<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(e) Expenses Income Reimbursement(g) (000 omitted) Rate
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
(0.33) $10.99 3.31%(i) 0.67%(h) 4.57%(h) 0.07%(h) $ 23,995 7%
(0.23) $10.97 2.86%(i) 0.75%(f)(h) 4.55%(h) 0.14%(h) $ 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%
(0.35) $10.42 5.34%(i) 0.69%(h) 5.38%(h) 0.05%(h) $109,261 7%
(0.26) $10.23 3.33%(i) 0.76%(f)(h) 5.67%(h) 0.02%(h) $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%
(0.32) $10.99 3.14%(i) 0.92%(h) 4.32%(h) 0.07%(h) $ 8,764 7%
(0.22) $10.97 2.75%(i) 1.00%(f)(h) 4.30%(h) 0.21%(h) $ 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%
(0.33) $10.42 5.06%(i) 0.94%(h) 5.13%(h) 0.05%(h) $ 3,084 7%
(0.25) $10.24 3.31%(i) 1.01%(f)(h) 5.42%(h) 0.09%(h) $ 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%
- -------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
Combined Notes to Financial Statements
December 31, 1998
(1) Organization
The Huntington Funds, formerly known as 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. As of December 31, 1998, the Trust
consisted of eight diversified and three non-diversified portfolios
(individually referred to as the "Fund", or collectively as the "Funds") as
follows:
Huntington Money Market ("Money Market")+**
(formerly known as The Monitor Money Market Fund)
Huntington Ohio Municipal Money Market Fund*("Ohio Municipal Money
Market")**
(formerly known as The Monitor Ohio Municipal Money Market Fund)
Huntington U.S. Treasury Money Market Fund ("U.S. Treasury Money Market")**
(formerly known as The Monitor U.S. Treasury Money Market Fund)
Huntington Growth Fund ("Growth")**
(formerly known as The Huntington Growth Fund)+
Huntington Income Equity Fund ("Income Equity")**
(formerly known as The Monitor Income Equity Fund)
Huntington Michigan Tax-Free Fund* ("Michigan Tax-Free")+**
(formerly known as The Monitor Michigan Tax-Free Fund)
Huntington Ohio Tax-Free Fund* ("Ohio Tax-Free")**
(formerly known as The Monitor Ohio Tax-Free Fund)
Huntington Fixed Income Securities Fund ("Fixed Income")**
(formerly known as The Monitor Fixed Income Securities Fund)
Huntington Intermediate Government Income Fund ("Intermediate Government
Income")+**
(formerly known as The Monitor Intermediate Government Income Fund)
Huntington Mortgage Securities Fund ("Mortgage Securities")**
(formerly known as The Monitor Mortgage Securities Fund)
Huntington Short/Intermediate Fixed Income Securities Fund
("Short/Intermediate Fixed Income")**
(formerly known as The Monitor Short/Intermediate Fixed Income Securities
Fund)
*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.
During the period from April 6, 1998 through December 31, 1998, the sales
charges were temporarily waived. 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.
** Effective January 1, 1999, The Monitor Funds changed its name to The
Huntington Funds.
+ 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.
Historical 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.
44
<PAGE>
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.
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, 1998, $22,284 has been reclassified from Income Equity's
accumulated net unrealized gain (loss) on investments to undistributed net
investment income. As of December 31, 1998, $29,893 has been reclassified from
Mortgage Securities' paid-in-capital to accumulated net realized gain (loss) on
investments. Net investment income, net realized loss, and net assets were not
affected by this change.
D. Federal Taxes
It is the Funds' policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provisions for federal tax
are necessary.
At December 31, 1998, Money Market, Ohio Municipal Money Market, Intermediate
Government Income, 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 2006 Total
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market -- -- 86,955 -- 757 1,194 $ 88,906
- ----------------------------------------------------------------------------------------
Ohio Municipal Money
Market -- 2,172 10,081 -- -- -- $ 12,253
- ----------------------------------------------------------------------------------------
Intermediate Government
Income 341,003 1,366,912 -- -- -- 11,041 $ 1,718,956
- ----------------------------------------------------------------------------------------
Mortgage Securities -- 10,376,781 10,841,602 2,455,048 -- -- $23,673,431
- ----------------------------------------------------------------------------------------
</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.
45
<PAGE>
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 Fees and Other Transactions with Affiliates
Investment Advisory Fee--The Huntington National Bank, the Trust's investment
adviser ("Huntington" or the "Adviser"), receives for its services an annual
investment advisory fee for each of the Funds at the following annual rates:
Money Market and Ohio Municipal Money Market: 0.30% of the first $500 million
of average daily net assets of each Fund, 0.25% of the next $500 million, and
0.20% of any amount over $1 billion; U.S. Treasury Money Market: 0.20% of the
Fund's average daily net assets; Growth and Income Equity: 0.60% of each Fund's
average daily net assets; and 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. During 1998, 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 these voluntary waivers 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.
46
<PAGE>
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 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 twelve-month period ended December 31, 1998, Huntington received fees of
$797,239. ADS received $35,000 plus out-of-pocket expenses for services
rendered for the twelve-month period ended December 31, 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 twelve-month period ended December 31, 1998, Huntington
received fees of $667,677.
For the twelve-month period ended December 31, 1998, certain Officers of the
Trust were Officers of SFR and SIDCO. Such Officers receive no compensation
from the Trust.
For the twelve-month period ended December 31, 1998, Huntington paid $37,829 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
twelve-month period ended December 31, 1998 were as follows (all numbers in
thousands):
<TABLE>
<CAPTION>
Investment Securities
---------------------
Income Ohio
Growth Equity Tax-Free
- ------------------------------------------
<S> <C> <C> <C>
Purchases $31,312 $31,664 $6,692
Sales $60,232 $29,308 $5,915
- ------------------------------------------
<CAPTION>
Short/
Intermediate
Fixed Mortgage Fixed
Income Securities Income
- ------------------------------------------
<S> <C> <C> <C>
Purchases $35,945 -- $32,935
Sales $ 4,770 -- $12,944
- ------------------------------------------
<CAPTION>
U.S. Government Obligations
---------------------------
Income Ohio
Growth Equity Tax-Free
- ------------------------------------------
<S> <C> <C> <C>
Purchases -- -- --
Sales -- -- --
- ------------------------------------------
<CAPTION>
Short/
Intermediate
Fixed Mortgage Fixed
Income Securities Income
- ------------------------------------------
<S> <C> <C> <C>
Purchases $51,952 $9,575 $51,207
Sales $70,159 $6,383 $68,481
- ------------------------------------------
</TABLE>
Purchases and sales of investments, excluding short-term securities, for the
seven-month period ended December 31, 1998 were as follows (all numbers in
thousands):
<TABLE>
<CAPTION>
Investment Securities
---------------------
Intermediate
Michigan Government
Tax-Free Income
- ------------------------------------
<S> <C> <C> <C>
Purchases $1,289 --
Sales $6,361 --
- ------------------------------------
<CAPTION>
U.S. Government Obligations
---------------------------
Intermediate
Michigan Government
Tax-Free Income
- ------------------------------------
<S> <C> <C> <C>
Purchases -- $8,066
Sales -- $17,539
- ------------------------------------
</TABLE>
47
<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.
48
<PAGE>
Explanation of the Indices (& Notes) in the Management Discussion & Analysis
Michigan Tax-Free Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the sales load of 4.75% which was in effect as of 12/31/91 ($10,000
investment minus $475 sales load = $9,525). The Fund's performance assumes
the reinvestment of all dividends and distributions. During the period from
April 6, 1998 through December 31, 1998, the current sales load of 2.00% was
temporarily waived.
+The L5MB and the L7MB have been adjusted to reflect reinvestment of
dividends on securities in the index. The L5MB and the L7MB are not adjusted
to reflect sales loads, expenses, or other fees that the Securities and
Exchange Commission requires to be reflected in the Fund's performance. These
indices are unmanaged.
Ohio Tax-Free Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LB5GO has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the current sales load of 2.00% effective 2/1/93 ($10,000 investment minus
$200 sales load = $9,800). The Fund's performance assumes the reinvestment of
all dividends and distributions. The LB5GO has been adjusted to reflect
reinvestment of dividends on securities in the index. During the period from
April 6, 1998 through December 31, 1998, the current sales load of 2.00% was
temporarily waived.
+The LB5GO is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. These indices are unmanaged.
++The LSMD, LOIMD and LIMD each represent the average of the total returns
reported by all of the mutual funds that Lipper Analytical Services, Inc. has
determined belong in the respective categories, and are not adjusted to
reflect any sales loads. However, these total returns are reported net of
expenses or other fees that the Securities and Exchange Commission requires
to be reflected in a fund's performance.
Fixed Income Securities Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LBGCB has been adjusted to reflect reinvestment of
dividends on securities in the index.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the current sales load of 2.00% effective 2/1/93 ($10,000 investment minus
$200 sales load = $9,800). The Fund's performance assumes the reinvestment of
all dividends and distributions. The LBGCB has been adjusted to reflect
reinvestment of dividends on securities in the index. During the period from
April 6, 1998 through December 31, 1998, the current sales load of 2.00% was
temporarily waived.
+The LBGCB is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. This index is unmanaged.
++The LIIGDF represents the average of the total returns reported by all of
the mutual funds that Lipper Analytical Services, Inc. has determined belong
in that category, and is not adjusted to reflect any sales loads. However,
these total returns are reported net of expenses or other fees that the
Securities and Exchange Commission requires to be reflected in a fund's
performance.
Intermediate Government Income Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the sales load of 4.75% in effect as of 12/31/91
($10,000 investment minus $475 sales load = $9,525). The Fund's performance
assumes the reinvestment of all dividends and distributions. During the
period from April 6, 1998 through December 31, 1998, the current sales load
of 2.00% was temporarily waived.
+The LIGC has been adjusted to reflect reinvestment of dividends on
securities in the index. The LIGC is not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires
to be reflected in the Fund's performance. This index is unmanaged.
Mortgage Securities Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions.
**Represents a hypothetical investment of $10,000 in the Fund after deducting
the current sales load of 2.00% ($10,000 investment minus $200 sales load =
$9,800). The Fund's performance assumes the reinvestment of all dividends and
distributions. During the period from April 6, 1998 through December 31,
1998, the current sales load of 2.00% was temporarily waived.
+LMI is not adjusted to reflect sales loads, expenses, or other fees that the
Securities and Exchange Commission requires to be reflected in the Fund's
performance. This index is unmanaged.
++The LUSMF represents the average of the total returns reported by all of
the mutual funds that Lipper Analytical Services, Inc. has determined belong
in that category, and is not adjusted to reflect any sales loads. However,
these total returns are reported net of expenses or other fees that the
Securities and Exchange Commission requires to be reflected in a fund's
performance.
Short/Intermediate Fixed Income Securities Fund
*The Fund's performance assumes the reinvestment of all dividends and
distributions. The LIGC and the ML1-5YUT have been adjusted to reflect
reinvestment of dividends on securities in the indices.
+The LIGC, ML1-5YUT and ML1-5YGC are not adjusted to reflect sales loads,
expenses, or other fees that the Securities and Exchange Commission requires to
be reflected in the Fund's performance. These indices are unmanaged.
++The LSTIGD represents the average of the total returns reported by all the
mutual funds that Lipper Analytical Services, Inc. has determined belong in
that category, and is not adjusted to reflect any sales loads. However, the
total returns are reported net of expenses or other fees that the Securities
and Exchange Commission requires to be reflected in a fund's performance.
49
<PAGE>
Report of Independent Auditors
The Shareholders and Board of Trustees ofThe Huntington Funds:
We have audited the accompanying statements of assets and liabilities of The
Huntington Funds--Money Market Fund, Ohio Municipal Money Market Fund, U.S.
Treasury Money Market Fund, Growth Fund, Income Equity Fund, Ohio Tax-Free
Fund, Fixed Income Securities Fund, Mortgage Securities Fund,
Short/Intermediate Fixed Income Securities Fund, Michigan Tax-Free Fund and
Intermediate Government Income Fund (the Funds), including the schedules of
portfolio investments, as of December 31, 1998, and the related statements of
operations, statements of changes in net assets and the financial highlights
related to the years ended December 31, 1998 and 1997 for the Money Market
Fund, Ohio Municipal Money Market Fund, U.S. Treasury Money Market Fund, Growth
Fund, Income Equity Fund, Ohio Tax-Free Fund, Fixed Income Securities Fund,
Mortgage Securities Fund and Short/Intermediate Fixed Income Securities Fund,
and the seven month period ended December 31, 1998 and the six month period
ended May 31, 1998 for the Michigan Tax-Free Fund and Intermediate Government
Income Fund. These financial statements and the financial highlights are the
responsibility of The Huntington Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits. With respect to the Money Market Fund, Ohio Municipal Money
Market Fund, U.S. Treasury Money Market Fund, Growth Fund, Income Equity Fund,
Ohio Tax-Free Fund, Fixed Income Securities Fund, Mortgage Securities Fund and
Short/Intermediate Fixed Income Securities Fund, the accompanying financial
highlights for each of the periods in the three year period ended December 31,
1996, were audited by other auditors whose report thereon dated February 14,
1997 expressed an unqualified opinion on the financial highlights. With respect
to the Michigan Tax-Free Fund and Intermediate Government Income Fund, the
accompanying statements of changes in net assets for the year ended November
30, 1997 and the financial highlights for each of the periods in the four year
period ended November 30, 1997, were audited by other auditors whose report
thereon dated January 13, 1998 expressed an unqualified opinion on the
statements of changes in net assets and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification of securities owned as of
December 31, 1998, by examination, correspondence with brokers and other
appropriate audit procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds comprising The Huntington Funds as of December 31,
1998, the results of their operations, the changes in their net assets and the
financial highlights related to the years ended December 31, 1998 and 1997 for
the Money Market Fund, Ohio Municipal Money Market Fund, U.S. Treasury Money
Market Fund, Growth Fund, Income Equity Fund, Ohio Tax-Free Fund, Fixed Income
Securities Fund, Mortgage Securities Fund and Short/Intermediate Fixed Income
Securities Fund, and the seven month period ending December 31, 1998 and the
six month period ending May 31, 1998 for the Michigan Tax-Free Fund and
Intermediate Government Income Fund, in conformity with generally accepted
accounting principles.
KPMG LLP
Columbus, Ohio
February 17, 1999
50
<PAGE>
Notice to Shareholders of The Huntington Funds
For the fiscal year ended December 31, 1998, each fund is designating long-term
and mid-term capital gains, qualifying dividends, and exempt income with regard
to distributions paid during the year as follows:
<TABLE>
<CAPTION>
(A) (B)
Long-Term Ordinary (C) (E)
Capital Gains Income Total (D) Tax
Distributions Distributions Distributions Qualifying Exempt
Fund Tax Basis Tax Basis Tax Basis Dividends(1) Interest
- ---- ------------- ------------- ------------- ------------ --------
<S> <C> <C> <C> <C> <C>
Money Market 0% 100% 100% 0% 0%
Ohio Municipal Money
Market 0% 100% 100% 0% 100%
U.S. Treasury Money
Market 0% 100% 100% 0% 0%
Growth 84% 16% 100% 100% 0%
Income Equity 40% 60% 100% 100% 0%
Michigan Tax-Free 4% 96% 100% 0% 99%
Ohio Tax-Free 2% 98% 100% 0% 100%
Fixed Income 1% 99% 100% 0% 0%
Intermediate Government
Income 0% 100% 100% 0% 0%
Mortgage Securities 0% 100% 100% 0% 0%
Short/Intermediate Fixed
Income 1% 99% 100% 0% 0%
</TABLE>
Please consult your tax advisor for proper treatment of this information.
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction
* Items (A) and (B) are based on a percentage of the Funds' total
distributions.
** Items (D) and (E) are based on a percentage of the Funds' ordinary income
distributions.
51
<PAGE>
Trustees
David S. Schoedinger
John M. Shary
William R. Wise
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, The Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance
that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus, which contains facts
concerning the Funds' objectives and policies, management fees, expenses and
other information.
<PAGE>
[LOGO APPEARS HERE]
THE HUNTINGTON
NATIONAL BANK,
a subsidiary of
Huntington Bancshares
Incorporated, is the
Investment Adviser,
Custodian, and
Recordkeeper of
The Huntington Funds,
SEI Investments
Distribution Co. is
the Distributor and is
not affiliated with The
Huntington National Bank.
[LOGO OF HUNTINGTON FUNDS APPEARS HERE]
(800) 253-0412
