SESSIONS GROUP, N-30D, 1998-03-04

SESSIONS GROUP
N-30D, 1998-03-04

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<PAGE> 1

MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
- --------------------------------------------------------------------------------

Dear Investor:

We are pleased to present this semi-annual report for the six months ended
December 31, 1997--a time of extraordinary volatility in stock and bond markets
throughout the world.

In our annual report last summer, we commented that "the markets are nothing if
not full of surprises." Little did we know how foretelling that simple comment
would prove to be in the months that followed. During the short period since
that report, the following events occurred:

- - The Dow Jones Industrial Average climbed to its highest levels in history, and
then proceeded to suffer its largest single-day point loss ever.

- - Interest rates, which had rocketed upward early in the year, dropped sharply
as bonds staged a year-end rally.

- - Financial markets from Bangkok to Sao Paulo, and Hong Kong to New York, were
rocked by the news that a potentially disastrous meltdown was under way in the
Far East. The crisis threatened to engulf countries once thought to be immune
from such perils as economic deflation, currency devaluation, wholesale
bankruptcy and plummeting stock market values.

Only in hindsight will the long-term significance of these events be understood.
However, a brief review of the last six months can help us understand where we
find ourselves at the beginning of this new calendar year.

STOCKS CLIMB, SINK, THEN CLAW BACK UP AGAIN

The stock market is often described as a roller coaster. This analogy proved
accurate during the final six months of 1997, as equity investors found
themselves on the ride of their lives. After a sharp decline in the spring,
precipitated by the Federal Reserve Board's decision to raise short-term
interest rates, the stock market roared back throughout the summer; the Dow
Jones Industrial Average reached an all-time high of 8259 on August 6. However,
in a performance eerily reminiscent of 1987--when the Dow retreated from
then-record levels in August before crashing in October of that year--the blue-
chip average began to slide gradually, before plunging a breathtaking 554 points
on October 27, 1997.

Stocks continued to offer surprises. Large-cap issues climbed back in November
and December to push the Dow up to 7908--4% below the August high, but still
ahead by more than 22% for the year. And 1997's overall performance marked the
first time in history that the Dow rose more than 20% for three consecutive
years.

BONDS REGAIN LUSTER AS THE INVESTMENT OF CHOICE

For much of the last three years, bonds have played a distant second fiddle to
stocks, unable to keep up with equities' blistering pace. However, following a
difficult period early in 1997--again, exacerbated by the Fed's March 25 rate
hike--bond yields began a slow, steady decline, which raised the value of the
underlying issues (whose prices move inversely to interest rates). As the Asian
crisis spread throughout that region and around the world, and investors began
to feel some pain from the equity holdings in their portfolios, bonds regained
favor as securities offering relative safety and stability. U.S. Treasury
issues, in particular, were favored for their relatively solid yields and their
unimpeachable quality. As 1997 ended, the yield on the 30-year Treasury bond
stood at 5.92%, down a significant 72 basis points (0.72%) for the year. And
with a subdued 1.7% inflation rate, bond investors realized "real returns"
(total return minus inflation) that were quite strong in historical terms.

ASIA: WAKE-UP CALL OR FULL-BLOWN ALARM?

In recent years, equity investors have become complacent about the risks that
exist in stock markets both at home and abroad. That optimism--which we believe
to be potentially hazardous to investor well-being--has been fed by the powerful
recoveries in stock prices that have invariably followed every short-term
correction in recent history. After three consecutive years of over 20% returns,
it has become

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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fashionable to assume that we have entered an era of higher returns and lower
(or at least, less significant) volatility.

We believe that nothing could be further from the truth. Historically, returns
on stocks have been a great deal lower than what we have enjoyed for the past
few years. Investors should not expect that they will continue to realize high,
double-digit returns from the equity markets on an ongoing basis.

In many respects, the Asian situation has served as a wake-up call. For numerous
investors, it has come as something of a shock to realize that economies such as
those in Asia can fail on such a large scale and with such disheartening
swiftness. We feel the consequences of this event have not yet played out fully.
In other words, further damage is not out of the question.

Although this is a painful time for countries and investors involved in the
Asian crash, the crisis might turn out to be a productive event by reminding
investors of the risks inherent in the global stock market. The lesson here is
that markets are not risk free. Investors need to make certain the approach they
take is consistent not only with their desired rate of return, but also with
their capacity to assume risk.

INVESTMENT OVERVIEWS

This semi-annual report lists the Schedule of Investments for the Funds,
financial highlights and complete financial statements. Also provided are
interviews with our fund managers, in which each manager answers the following
questions: How did the Fund perform during the period? What factors affected the
Fund's performance? How did you apply your investment strategy during the
period? What are some of the interesting stocks in your portfolio? And, What is
your outlook? We encourage you to read each individual interview and all of the
accompanying financial information, so that you can more thoroughly understand
how your investment is being managed.

As always, we remain committed to maintaining open channels of communication. If
you have any questions about your investment, or would like to receive a
prospectus or other information about any of the Funds, feel free to contact
your account representative, or call the Funds directly at 1-800-766-8938.

We look forward to serving your investment needs in the months and years to
come.

Sincerely,

John Seidl, CFA
Ralph C. Shive, CFA

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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INCOME EQUITY FUND
RALPH C. SHIVE, CFA

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. For the six months ended December 31, 1997, the Fund's total return was
10.36% (without sales load).(1) In comparison, the Russell 1000 Value Index
rose 14.87%, and the Lipper Equity Income Index* gained 11.01%.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. There was a lot of takeover activity in the market, and we benefited when a
couple of the companies we owned were taken over. For example, MAPCO, Inc.
(the shares are no longer held by the Fund), which is in the oil and gas
pipeline business, was taken over by Williams Co. Also, Bergen Brunswig
Corp. (0.81% of the Fund's assets),(2) a pharmaceuticals concern, is in the
process of being acquired by Cardinal Health. Another positive factor was
the outperformance of some of our mid-cap holdings in the third quarter; a
period when smaller stocks did better than the large-cap equities that led
the market earlier in the year. Additionally, in the fourth quarter, with
interest rates falling, the interest-sensitive utility and real estate
investment trust (REIT) stocks in our portfolio did quite well. For the
fourth quarter overall, however, the crisis in Asia produced a great deal of
volatility in the stock market, and we cut back on stocks with international
exposure, such as Fluor Corporation (0.82%) and Avon Products (1.07%). With
such uncertainty in the market, we were satisfied to avoid most of the
"torpedoes" and finish with a generally flat three months at the end of
1997.

Q. HOW DID YOU APPLY YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. One of the Fund's goals is to provide a yield higher than that of the
Standard & Poor's 500 while investing in inexpensive stocks that have the
potential for significant growth. As it turned out, this income equity style
performed very well in 1997. We provided our shareholders with a yield that,
as of December 31, 1997, was nearly double that of the S&P, and we
participated in a fair amount of capital appreciation. The type of value
stocks we seek did well, especially during the last six months, and we also
realized solid returns from our investments in "convertibles," securities
that pay above-average dividends and are convertible into shares of common
stocks.

Q. WHAT ARE SOME OF THE INTERESTING STOCKS IN YOUR PORTFOLIO?
A. The way we look at the economy, we see that people who have financial assets
and what we call "knowledge jobs" are doing well. Therefore, we try to
identify companies that sell products or services to these types of
consumers. This perspective has led us to take positions in a number of
airline and hotel stocks.(2) In the airline sector, we particularly like AMR
(1.40%), the parent company of American Airlines, and Delta (1.56%). The
steady decline in oil prices certainly has not hurt the airlines. In the
hotel sector, our holdings include Hospitality Properties Trust (0.86%), a
hotel REIT, and Sea Containers (1.55%), a shipping company that also owns
hotels throughout the world. In fact, Sea Container's hotel revenues

(1) The total return, with the maximum 5.00% sales charge, was 4.81% for the six
months ended December 31, 1997.

(2) The portfolio composition is subject to change.

* The Russell 1000 Value Index contains securities of the Russell 1000 Index
with a less-than-average growth orientation. Companies in this index generally
have low price-to-book and price-to-earnings ratios, higher dividend yields
and lower forecasted growth values. The Russell 1000 Value Index is an
unmanaged index and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
Fund's performance reflects the deduction of fees for these value-added
services. The Lipper Equity Income Index seeks relatively high current income
and growth of income through investing 60% or more of its portfolio in
equities.

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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already account for roughly 40% of the company's gross income, and revenues
continue to grow.

Q. WHAT IS YOUR OUTLOOK?
A. The fundamentals in the U.S. economy remain very good. People are working.
People are refinancing mortgages, which should add to consumers' disposable
income. However, we operate in a global world now and, therefore, a global
economy. In addition, we believe that the Asian crisis is a serious problem.
South Korea, the world's eleventh-largest economy, and Japan, the world's
second-largest economy, are in trouble. The way things are going, we are
concerned that Asia, and perhaps South America, could suffer from a
liquidity crunch. In a global economy, these problems could flow back to the
United States and adversely affect the corporate earnings of American
companies. So, we've become more defensive in recent months, raising cash
equivalents to about 10.6% (as of December 31, 1997) and migrating toward
companies with steady earnings in sectors such as food, auto parts and real
estate--the types of stocks we feel can weather a recession, if one comes.
For the long term, we remain bullish on the underpinning fundamentals of
equities, with most of the portfolio invested in common stocks and
convertible securities.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------
WITH SALES WITHOUT SALES
CHARGE** CHARGE
---------- -------------
<S> <C> <C>
1 Year...................................................... 21.22% 27.54%
5 Years..................................................... 16.97% 18.19%
10 Years.................................................... 14.95% 15.52%
Since Inception (9/25/96)***................................ 13.71% 14.22%
</TABLE>

** Reflects maximum sales charge of 5.00%.

***The total return set forth may reflect the waiver of a portion of the Fund's
fees for certain periods since the inception date. In such instances, and
without waiver of fees, total return would have been lower. The 1st Source
Monogram Income Equity Fund commenced operations on September 25, 1996, through
a transfer of assets from certain collective trust fund ("Commingled") accounts
managed by 1st Source Bank, using substantially the same investment objective,
policies and methodologies as the Fund. The quoted performance of the Fund
includes performance of the Commingled accounts for periods dating back to
11/30/85, and prior to the Fund's commencement of operations, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore, were not
subject to the investment restrictions imposed by law on registered mutual
funds. If the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected.

The performance also reflects reinvestment of all dividends and capital gains
distributions. Past performance is not a prediction of future results. The
Fund's investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
purchase price.

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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DIVERSIFIED EQUITY FUND

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. For the six-month period ended December 31, 1997, the Fund's total return
was 10.46% (without sales load).(1) In comparison, the Standard & Poor's 500
Index* was up 10.57% during the same period.

The Diversified Equity Fund is a multi-style, multi-manager portfolio with
three subadvisers representing the sector rotation, value and growth styles.
The following interview is with portfolio managers Anthony Rizza of Columbus
Circle Investors (sector rotation), Robert Marcin of Miller Anderson &
Sherrerd LLP (value) and Bob Takazawa of Loomis Sayles & Company L.P.
(growth).

Q. WHAT FACTORS AFFECTED THE FUND'S
PERFORMANCE?
A. Anthony Rizza, Columbus Circle Investors:
As much as the technology sector in general performed poorly during the
second half of 1997, we actually did quite well in technology. Our stock
selection within the technology and telecommunications groups picked some
big winners--such as America Online (1.50% of the Fund's assets),(2) and
Tele-Communications, Inc. (0.95%). We jumped onto Tele-Communications in a
big way, which helped our performance when the stock soared. However, we did
see a couple of our stocks blow up: Corning, Inc. and Oxford Health Plans
(neither stock is still in the Fund). Therefore, we sold both positions
immediately and avoided further losses.

A. Robert Marcin, Miller Anderson & Sherrerd:
We had a significant amount of economic and cyclical exposure in the
portfolio. In the last four months of 1997, certain economic-sensitive
sectors were damaged by the perception that the Asian problem would
seriously impair economic growth on a global basis. The downward pressures
on the stock market were most greatly felt by the sectors that our value
style of investing had led us to favor: consumer durables (such as houses
and cars), building materials, manufacturing, machinery and raw materials.

A. Bob Takazawa, Loomis Sayles:
The essential driver was our longer term view that higher growth stocks were
excessively undervalued; our holdings in this area did well through October.
Actually, the mid- and small-cap phenomenon came into play back in May--when
smaller stocks began to outperform large-cap equities--and this momentum
carried through until the market suffered its 554-point plunge on October
27. At that point, the resurgence toward high-growth stocks in the mid- and
small-cap sectors stalled out. In November and December, we saw a "flight to
safety." Utilities and very stable consumer stocks, which mostly do not fit
our profile, did the best.

(1) The total return, with the maximum 5.00% sales charge, was 4.95% for the
six-months ended December 31, 1997.

(2) The portfolio composition is subject to change.

* The S&P 500 Stock Index is an unmanaged index which is generally
representative of the U.S. stock market as a whole. The index is unmanaged and
does not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The Fund's performance
reflects the deduction of fees for these value-added services.

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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Q. HOW DID YOU APPLY YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. Anthony Rizza, Columbus Circle Investors:
Our style is to find stocks that could benefit from positive surprises and
to avoid those with negative surprises. All of our winners during the last
six months of 1997 exhibited some sort of positive surprise. For example,
America Online benefited from the popularity of low-cost personal computers.
As consumers bought these cheaper PCs in large numbers, they looked for ways
to connect to the Internet, and they went to America Online; it was almost a
reflex action. The company also began to take its huge basket of subscribers
to advertisers, marketing the data they had compiled on their subscribers'
demographics and preferences. This contributed to robust revenue growth.

A. Robert Marcin, Miller Anderson & Sherrerd:
Our strategy is not to increase the size of our commitments until we feel
the market has taken its anti-cyclical sentiment to an extreme. At the end
of 1997, the sentiment was as extreme as it had been earlier in the year,
but we were not sure if the trend had reached its climax. Therefore, we left
some room in the portfolio for future incremental purchases of many of the
stocks we like. During the last few months, we did not execute any major
restructuring to the portfolio. Consistent with our style, we continued to
buy cheaper stocks within our favorite sectors.

A. Bob Takazawa, Loomis Sayles:
Our mandate is to pursue stocks of companies that can potentially grow
earnings faster than the market as a whole, with relatively low price-to-
earnings (P/E) multiples. We feel that for much of the last half of 1997,
the market did recognize that high growth was significantly undervalued
relative to large-cap growth. In that context, we continued to search for
companies that had the potential to deliver 15% to 20% earnings growth. We
now feel we are coming into a much better environment for the type of stocks
we target.

Q. WHAT ARE SOME INTERESTING STOCKS IN YOUR PORTFOLIO?
A. Anthony Rizza, Columbus Circle Investors:
Along with the winners we mentioned earlier, we also benefited from good
exposure to the consumer area. We are very positive about Safeway (1.04% of
the Fund's assets), the food retailer, and CBS (0.78%), the broadcast
company. CBS's merger with Infinity Broadcasting has worked out extremely
well. With consumers having more money to spend, we also like some retail
stocks: Price/Costco (0.83%), TJX Cos. (0.90%), Home Depot (1.75%) and
Dayton Hudson (0.61%).

A. Robert Marcin, Miller Anderson & Sherrerd:
We like Cummins Engine (0.73%). On the basis of price-to-earnings,
price-to-cash-flow and price-to-sales, it is one of the cheapest stocks in
the industrial universe. Cummins is introducing a new engine, one that is
getting tremendous reviews in the marketplace. Moreover, they have done a
great job in diversifying their business globally. We are also big fans of
Harnischfeger Industries (0.47%), which produces mining and papermaking
equipment. The stock price has suffered from the troubles in Asia, but the
company is a global leader in its two main businesses, with huge market
shares.

A. Bob Takazawa, Loomis Sayles:
We feel very positive about Pfizer (2.12%), the pharmaceuticals company.
Pfizer performed well in 1997, as did many of the drug companies. Pfizer's
outperformance likely will continue, thanks to potential earnings growth of
18% in 1998 and a projected annual growth rate of 20% over the next three
years. In addition, the company should introduce three big new drug products
in 1998. We also like Cendant (2.41%), the organization that resulted from
the merger between CUC International (provides discount buying services) and
hospitality franchiser HFS. We have been a long-time holder of CUC
International, and we believe the new, much larger company can grow revenues
25% annually for the next three years.

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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Q. WHAT IS YOUR OUTLOOK?
A. Anthony Rizza, Columbus Circle Investors:
We tend not to be predictors of the overall market; we focus on picking good
stocks. Nevertheless, we think the crisis in Asia is really a big deal. The
big growth potential for many companies does not lie in the United States;
it rests in Asia. Consequently, we see an environment in which a leg of
growth, embodied by the Asian markets, has been removed from the earnings
prospects of large, multinational companies. Over the next six months, we
intend to focus on companies that have a lot of domestic, not international,
exposure. Value will come from prudent stock selection.

A. Robert Marcin, Miller Anderson & Sherrerd:
The U.S. stock market has never been more expensive in its entire history.
Therefore, at these valuation levels, it is somewhat hard to be enthusiastic
about the chances for excess returns, or perhaps even historical returns. We
are definitely cautious. We think the U.S. market could provide cash-like
returns, or less, over the next two to three years. For that reason, and for
reasons related to portfolio construction, we are holding a reasonable cash
position.

A. Bob Takazawa, Loomis Sayles:
We believe the market will continue to be extremely choppy. Frankly, we
think the earnings outlook for many companies is uncertain. The consequences
of the Asian crisis have yet to be fully understood, and this does add
vulnerability to the market. In recent years, stocks have been driven by
steady growth in the economy and in the earnings of individual companies.
The problems in Asia will have a significant impact on this growth over the
next year. However, we are not saying that we necessarily have a bear market
on our hands. It is quite possible that P/Es will be supported, and may even
be driven upward, by lower interest rates.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------
WITH SALES WITHOUT SALES
CHARGE** CHARGE
---------- -------------
<S> <C> <C>
1 Year...................................................... 18.39% 24.61%
5 Years..................................................... 14.77% 15.98%
10 Years.................................................... 14.68% 15.27%
Since Inception (9/23/96)***................................ 12.17% 12.64%
</TABLE>

** Reflects maximum sales charge of 5.00%.

***The total return set forth may reflect the waiver of a portion of the Fund's
fees for certain periods since the inception date. In such instances, and
without waiver of fees, total return would have been lower. The 1st Source
Monogram Diversified Equity Fund commenced operations on September 20, 1996,
through a transfer of assets from certain collective trust fund ("Commingled")
accounts managed by 1st Source Bank, using substantially the same investment
objective, policies and methodologies as the Fund. The quoted performance of the
Fund includes performance of the Commingled accounts for periods dating back to
6/30/85, and prior to the Fund's commencement of operations, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore, were not
subject to the investment restrictions imposed by law on registered mutual
funds. If the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected.

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<PAGE> 8
MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
- --------------------------------------------------------------------------------

SPECIAL EQUITY FUND+

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. A. For the six months ended December 31, 1997, the Fund's total return was
3.82% (without sales load).(1) In comparison, the Russell 2000 was up
11.04%, while the Standard & Poor's 500 Index* rose 10.57%.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. The Fund posted an 18% return (without sales load) in the third quarter, as
the small-company growth sector, which is our primary focus, solidly
outperformed the large-capitalization issues that had led the market earlier
in the year. However, the fourth quarter was a difficult period for small-
cap stocks in general, and the Fund was not immune to the sector's decline
in momentum. The growing crisis in Asia abruptly took the steam out of the
small-cap rally that had been building since the summer. Many smaller growth
companies are involved in the technology and capital goods businesses, whose
revenues depend largely on markets in the Far East. For these companies, the
problems in Asia presented two formidable obstacles: First, customers in
Japan, Korea, Thailand and other countries were less likely to buy their
products. Second, many Asian competitors, suffering from sharply devalued
currencies and desperate to generate cash flow, flooded the international
markets with cheaply priced goods, which further depressed revenues for
American companies. When stock prices in general began to recover toward
the end of 1997, most investors flocked to larger companies with minimal
Asian exposure, leaving the small-cap sector to languish.

Q. WAS THERE A DIVERGENCE IN PERFORMANCE BETWEEN SMALL-COMPANY GROWTH STOCKS AND
VALUE STOCKS?
A. Small-company growth issues significantly underperformed their small-company
value counterparts throughout the period. During 1997, the Russell 1000
Growth Index rose just 13%, compared to a 31% gain for the Russell 1000
Value Index. An essential reason for this disparity was that companies with
expectations of high earnings growth, such as technology issues, saw their
expectations pared back dramatically when turmoil erupted in the Asian
markets. Therefore, it is not surprising that many companies driven by
earnings momentum, the type of growth stocks we favor, started to fade at
the end of the year.

Q. WHAT ARE SOME INTERESTING STOCKS IN YOUR PORTFOLIO?
A. Some of our better-performing holdings are in the financial sector,
including banks such as Virginia Beach Federal (1.25% of the Fund's
assets(2)), Bank United Corp. (1.59%) and Mercantile Bankshares (1.04%). We
have also seen strength among our airline stocks, including Comair Holdings
(1.61%) and Southwest Airlines (2.29%).

(1) The total return, with the maximum 5.00% sales charge, was 1.32% for the six
months ended December 31, 1997.

(2) The portfolio composition is subject to change.

* The S&P 500 Stock Index is generally representative of the performance of the
U.S. stock market as a whole. The Russell 2000 Index is generally
representative of the performance of small- to mid-sized companies. These
indices are unmanaged and do not reflect the deduction of expenses associated
with a mutual fund, such as investment management and fund accounting fees.
The Fund's performance reflects the deduction of fees for these value-added
services.

+ Small-capital companies typically carry additional risks, since smaller
companies generally have a higher risk of failure and, by definition, are not
as well established as "blue-chip" companies. Historically, small-company
stocks have experienced a greater degree of market volatility than
large-company stocks on average.

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
- --------------------------------------------------------------------------------

Q. WHAT ARE YOUR EXPECTATIONS FOR THE SMALL-CAP SECTOR GOING FORWARD INTO 1998?
A. From a fundamental outlook, we still believe this sector is undervalued.
Based on 1998 projected earnings, our Fund has an aggregate
price-to-earnings (P/E) ratio of 22, the same as the P/E for the S&P 500.
Yet, the earnings growth of the companies in our portfolio is estimated at
33%, versus just 20% earnings growth for the S&P 500. Simply put, compared
to the larger cap stocks in the S&P index, we feel we are paying the same
price for greater potential return. We continue to seek companies with
above-average earnings momentum and rising stock prices, and we believe
these types of stocks can offer solid, long-term returns. Still, we
recognize that we have gone through a period in which small stocks have not
performed well on a relative basis. And this type of performance does run in
cycles. As we enter 1998, we have taken a somewhat defensive posture, with
23.6% of the portfolio in cash. We are going to wait for confirmation that
this sector is picking up momentum before we commit all of our assets to
equities.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------
WITH SALES WITHOUT SALES
CHARGE** CHARGE
---------- -------------
<S> <C> <C>
1 Year...................................................... 2.35% 2.79%
5 Years..................................................... 10.85% 12.01%
10 Years.................................................... 14.91% 15.53%
Since Inception (9/20/96)***................................ 12.66% 13.13%
</TABLE>

** Reflects maximum sales charge of 5.00%.

***The total return set forth may reflect the waiver of a portion of the Fund's
fees for certain periods since the inception date. In such instances, and
without waiver of fees, total return would have been lower. The 1st Source
Monogram Special Equity Fund commenced operations on September 19, 1996, through
a transfer of assets from certain collective trust fund ("Commingled") accounts
managed by 1st Source Bank, using substantially the same investment objective,
policies and methodologies as the Fund. The quoted performance of the Fund
includes performance of the Commingled accounts for periods dating back to
11/30/85, and prior to the Fund's commencement of operations, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore, were not
subject to the investment restrictions imposed by law on registered mutual
funds. If the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected.

- --------------------------------------------------------------------------------

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<PAGE> 10
MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
- --------------------------------------------------------------------------------

INCOME FUND
JOHN SEIDL, CFA

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. For the six months ended December 31, 1997, the Fund's total return was
5.34% (without sales load).(1) In comparison, the Lehman Brothers
Intermediate Government/Corporate Bond Index* was up 4.90%.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. Our strategy was to focus our attention on U.S. Treasuries and other
high-grade issues, based on our belief that we were entering a period when
investors would recognize that inflation posed no threat to the economy or
to the bond market. As that awareness built among investors, it had a
positive effect on our performance numbers, especially since we had extended
the portfolio's average maturity. Overall, it was a good period for us. We
benefited from benign inflation, moderate economic growth and productivity
gains that helped keep retail prices down. All these factors are generally
positive factors for bonds, and they helped spark a rally toward the end of
1997. We achieved our objectives while maintaining an average credit quality
of AA2. As of December 31, 1997, the Fund's average weighted maturity was
4.6 years.(2)

Q. HOW DID YOU APPLY YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. We maintained a higher-than-normal weighting in U.S. Government securities
through most of the last six months, primarily because corporate securities
didn't offer much of a premium in yield. We also felt that the best way to
take advantage of what we correctly perceived to be an imminent
interest-rate decline was to be invested in U.S. Government securities. In
December, we did see yield spreads widen between government and corporate
issues, making corporates a little more attractive than they had been
earlier. However, our belief is that the best potential for total-return
performance in the near future still lies in the U.S. Government sector.

Q. HOW WILL THE FINANCIAL CRISIS IN ASIA AFFECT INTEREST RATES AND THE BOND
MARKET?
A. We are committed to a scenario in which rates will continue to trend lower
through most of 1998, due to what we anticipate will be a slowdown in the
U.S. economy. We foresee negligible inflation and corporate earnings that
should be lower than they have been for the past two or three years. The
catalyst for this slowdown will be the difficulties in Asia, which will be
felt on a global basis. As healthy economies struggle to help weaker

(1) The total return, with the maximum 4.00% sales charge, was 1.15% for the
six-month period ended December 31, 1997.

(2) The portfolio composition is subject to change.

* The Lehman Brothers Intermediate Government/Corporate Bond Index is an
unmanaged index generally representative of the performance of government and
corporate bonds with maturities of 1-10 years. The index does not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services.

- --------------------------------------------------------------------------------

-10-
<PAGE> 11
MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
- --------------------------------------------------------------------------------

economies--such as the U.S. lending support to the Asian bailout--all countries
will be impacted negatively. We also feel that world markets will be flooded by
a sea of cheap goods from Asia, hindering the ability of American companies to
raise prices on their own products.

Absent the effects of the Asian crisis, we think the fundamentals necessary for
a healthy bond market are in place: slow growth and low inflation. And there's a
growing sense in Washington that we are moving toward a period of government
budget surpluses, which would result in the U.S. Government issuing less debt.
From a supply-and-demand standpoint, this alone could raise bond prices across
the board. When you add the Asian component, you see that U.S. Treasury
securities are even more attractive, as they are perceived by investors
throughout the world as offering a safe haven for their money.

Q. WHAT IS YOUR OUTLOOK FOR THE ECONOMY IN 1998?
A. We think that 2% to 2.5% growth is realistic; the Asian situation should
keep the economy from growing any faster than that. We believe the members
of the Federal Reserve Board will continue to remain vigilant in their
mission to restrain inflation. At the same time, the Fed is in an ideal
position to do what is necessary not only to help resolve problems in Asia,
but also to continue to move our economy forward. Raising interest rates at
this juncture to slow the economy not only isn't necessary, but it also
could attract international capital that is needed in other markets. It's
more likely that the Fed will decide to keep short-term interest rates at
current levels, or lower them even further.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------
WITH SALES WITHOUT SALES
CHARGE** CHARGE
---------- -------------
<S> <C> <C>
1 Year...................................................... 3.55% 7.83%
5 Years..................................................... 5.47% 6.33%
10 Years.................................................... 7.25% 7.68%
Since Inception (9/24/96)***................................ 7.26% 7.69%
</TABLE>

** Reflects maximum sales charge of 5.00%.

***The total return set forth may reflect the waiver of a portion of the Fund's
fees for certain periods since the inception date. In such instances, and
without waiver of fees, total return would have been lower. The 1st Source
Monogram Income Fund commenced operations on September 23, 1996, through a
transfer of assets from certain collective trust fund ("Commingled") accounts
managed by 1st Source Bank, using substantially the same investment objective,
policies and methodologies as the Fund. The quoted performance of the Fund
includes performance of the Commingled accounts for periods dating back to
6/30/85, and prior to the Fund's commencement of operations, as adjusted to
reflect the expenses associated with the Fund. The Commingled accounts were not
registered with the Securities and Exchange Commission and, therefore, were not
subject to the investment restrictions imposed by law on registered mutual
funds. If the Commingled accounts had been registered, the Commingled accounts'
performance may have been adversely affected.

- --------------------------------------------------------------------------------

-11-
<PAGE> 12

TABLE OF CONTENTS

Statements of Assets and Liabilities
PAGE 13

Statements of Operations
PAGE 14

Statements of Changes in Net Assets
PAGE 15

Schedules of Portfolio Investments
PAGE 17

Notes to Financial Statements
PAGE 28

Financial Highlights
PAGE 33

-12-
<PAGE> 13

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
INCOME DIVERSIFIED SPECIAL
EQUITY EQUITY EQUITY INCOME
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $32,067,495; $62,580,922;
$24,129,419; and $48,553,827, respectively)............... $40,931,540 $79,803,532 $25,843,681 $49,369,241
Repurchase agreements (cost $4,845,416; $7,423,208;
$7,970,482; and $9,944,477, respectively)................. 4,845,416 7,423,208 7,970,482 9,944,477
----------- ----------- ----------- -----------
Total Investments..................................... 45,776,956 87,226,740 33,814,163 59,313,718
Interest and dividends receivable........................... 168,049 53,378 13,497 813,919
Receivable for investments sold............................. -- 71,941 -- --
Unamortized organization costs.............................. 10,159 15,290 8,553 13,175
Prepaid expenses and other assets........................... 1,473 2,966 1,237 2,814
----------- ----------- ----------- -----------
Total Assets.......................................... 45,956,637 87,370,315 33,837,450 60,143,626
----------- ----------- ----------- -----------
LIABILITIES:
Payable for investments purchased........................... 274,140 1,083,686 -- --
Accrued expenses and other payables:
Investment advisory fees................................ 30,412 78,143 22,227 27,916
Administration fees..................................... 1,119 2,086 895 1,638
Custodian fees.......................................... 1,795 4,962 2,821 2,566
Accounting fees......................................... 1,712 1,030 1,951 1,192
Trustees' fees.......................................... 1,691 1,119 384 1,498
Legal fees.............................................. 5,825 10,939 6,279 4,792
Audit fees.............................................. 5,826 7,054 6,337 6,227
Printing fees........................................... 3,084 5,824 1,740 3,253
Transfer agent fees..................................... 3,263 6,707 110 7,310
Registration and filing fees............................ 2,964 5,596 1,987 3,808
Other liabilities....................................... 201 536 298 319
----------- ----------- ----------- -----------
Total Liabilities..................................... 332,032 1,207,682 45,029 60,519
----------- ----------- ----------- -----------
NET ASSETS:
Capital..................................................... 36,162,468 67,674,561 31,497,030 59,199,805
Undistributed (distributions in excess of) net investment
income.................................................... 37,173 (66,102) (93) (8,417)
Net unrealized appreciation (depreciation) on investments... 8,864,045 17,222,610 1,714,262 815,414
Accumulated undistributed net realized gains (losses) on
investment transactions................................... 560,919 1,331,564 581,222 76,305
----------- ----------- ----------- -----------
Net Assets.............................................. $45,624,605 $86,162,633 $33,792,421 $60,083,107
=========== =========== =========== ===========
Outstanding units of beneficial interest (shares)........... 3,840,025 7,490,393 3,439,932 5,811,777
=========== =========== =========== ===========
Net asset value -- redemption price per share............... $ 11.88 $ 11.50 $ 9.82 $ 10.34
=========== =========== =========== ===========
Maximum Sales Charge........................................ 5.00% 5.00% 5.00% 4.00%
=========== =========== =========== ===========
Maximum Offering Price (100%/(100%-Maximum Sales Charge) of
net asset value adjusted to nearest cent) per share....... $ 12.51 $ 12.11 $ 10.34 $ 10.77
=========== =========== =========== ===========
</TABLE>

See notes to financial statements.
-13-
<PAGE> 14

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
INCOME DIVERSIFIED SPECIAL
EQUITY EQUITY EQUITY INCOME
FUND FUND FUND FUND
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............................. $ 197,556 $ 183,444 $ 149,847 $1,938,041
Dividend income............................. 596,690 380,811 67,875 117,062
---------- ---------- ---------- ----------
Total Income.............................. 794,246 564,255 217,722 2,055,103
---------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees.................... 176,769 462,300 136,447 160,740
Administration fees......................... 44,193 84,055 34,112 58,452
12b-1 fees.................................. 55,240 105,068 42,640 73,064
Custodian fees.............................. 2,760 13,432 4,416 3,128
Accounting fees............................. 7,899 17,024 6,630 10,608
Trustees' fees and expenses................. -- 1,288 552 184
Legal fees.................................. 6,440 12,880 7,176 6,992
Audit fees.................................. 6,072 4,600 5,336 5,152
Printing costs.............................. 1,472 2,944 2,351 2,760
Organization costs.......................... 736 1,472 552 1,104
Transfer agent fees......................... 20,441 22,869 18,400 21,160
Registration and filing fees................ 2,392 4,232 552 552
Other....................................... 920 1,840 736 1,287
---------- ---------- ---------- ----------
Total Expenses.............................. 325,334 734,004 259,900 345,183
Less: 12b-1 fees voluntarily reduced... (55,240) (105,068) (42,640) (73,064)
---------- ---------- ---------- ----------
Net Expenses................................ 270,094 628,936 217,260 272,119
---------- ---------- ---------- ----------
Net Investment Income (Loss)................ 524,152 (64,681) 462 1,782,984
---------- ---------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) ON
INVESTMENTS:
Net realized gains (losses) on investment
transactions.............................. 2,887,384 4,772,907 2,088,138 292,028
Change in unrealized
appreciation/depreciation on
investments............................... 771,298 3,202,097 (811,104) 925,556
---------- ---------- ---------- ----------
Net realized/unrealized gains (losses) on
investments............................... 3,658,682 7,975,004 1,277,034 1,217,584
---------- ---------- ---------- ----------
Change in net assets resulting from
operations................................ $4,182,834 $7,910,323 $1,277,496 $3,000,568
========== ========== ========== ==========
</TABLE>

See notes to financial statements.
-14-
<PAGE> 15

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
INCOME EQUITY FUND DIVERSIFIED EQUITY FUND
--------------------------- ---------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED PERIOD ENDED ENDED PERIOD ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(A) 1997 1997(a)
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)......... $ 524,152 $ 616,421 $ (64,681) $ (54,090)
Net realized gains (losses) on
investment transactions........... 2,887,384 2,858,798 4,772,907 7,722,828
Net change in unrealized
appreciation/depreciation on
investments....................... 771,298 4,364,604 3,202,097 5,132,388
----------- ------------ ----------- ------------
Change in net assets resulting from
operations........................... 4,182,834 7,839,823 7,910,323 12,801,126
----------- ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income........... (516,360) (590,716) -- --
In excess of net investment income... -- -- -- --
From net realized gains on
investments....................... (5,026,674) (158,589) (9,785,732) (1,332,828)
In excess of net realized gains on
investments....................... -- -- -- --
----------- ------------ ----------- ------------
Change in net assets from shareholder
distributions........................ (5,543,034) (749,305) (9,785,732) (1,332,828)
----------- ------------ ----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.......... 6,803,245 42,293,659 10,090,043 84,469,233
Dividends reinvested................. 5,368,966 746,329 9,643,386 1,332,616
Cost of shares redeemed.............. (4,382,955) (10,934,957) (6,684,896) (22,280,638)
----------- ------------ ----------- ------------
Change in net assets from capital
transactions......................... 7,789,256 32,105,031 13,048,533 63,521,211
----------- ------------ ----------- ------------
Change in net assets................... 6,429,056 39,195,549 11,173,124 74,989,509
NET ASSETS:
Beginning of period.................. 39,195,549 -- 74,989,509 --
----------- ------------ ----------- ------------
End of period........................ $45,624,605 $ 39,195,549 $86,162,633 $ 74,989,509
=========== ============ =========== ============
SHARE TRANSACTIONS:
Issued............................... 525,056 4,149,432 791,580 8,361,129
Reinvested........................... 461,203 68,376 873,495 125,956
Redeemed............................. (337,162) (1,026,880) (529,829) (2,131,938)
----------- ------------ ----------- ------------
Change in shares....................... 649,097 3,190,928 1,135,246 6,355,147
=========== ============ =========== ============
</TABLE>

- ---------------

(a) Commencement of operations of the Funds began September 25, 1996 and
September 23, 1996, respectively.

See notes to financial statements.
-15-
<PAGE> 16

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SPECIAL EQUITY FUND INCOME FUND
--------------------------- ---------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED PERIOD ENDED ENDED PERIOD ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997(A) 1997 1997(a)
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss).......... $ 462 $ 10,227 $ 1,782,984 $ 2,182,134
Net realized gains (losses) on
investment transactions............ 2,088,138 (253,355) 292,028 (215,572)
Net change in unrealized
appreciation/depreciation on
investments........................ (811,104) 304,921 925,556 790,234
----------- ----------- ----------- ------------
Change in net assets resulting from
operations............................ 1,277,496 61,793 3,000,568 2,756,796
----------- ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............ (3,955) (10,227) (1,839,021) (2,141,355)
In excess of net investment income.... -- (337) -- --
From net realized gains on
investments........................ (452,546) -- -- --
In excess of net realized gains on
investments........................ -- (801,015) -- --
----------- ----------- ----------- ------------
Change in net assets from shareholder
distributions......................... (456,501) (811,579) (1,839,021) (2,141,355)
----------- ----------- ----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........... 7,435,398 38,050,281 7,529,124 66,488,773
Dividends reinvested.................. 439,480 811,083 1,791,860 2,132,592
Cost of shares redeemed............... (5,427,693) (7,587,337) (5,187,952) (14,448,278)
----------- ----------- ----------- ------------
Change in net assets from capital
transactions.......................... 2,447,185 31,274,027 4,133,032 54,173,087
----------- ----------- ----------- ------------
Change in net assets.................... 3,268,180 30,524,241 5,294,579 54,788,528
NET ASSETS:
Beginning of period................... 30,524,241 -- 54,788,528 --
----------- ----------- ----------- ------------
End of period......................... $33,792,421 $30,524,241 $60,083,107 $ 54,788,528
=========== =========== =========== ============
SHARE TRANSACTIONS:
Issued................................ 717,590 3,865,762 733,843 6,626,551
Reinvested............................ 46,261 83,724 174,782 210,754
Redeemed.............................. (505,736) (767,669) (505,141) (1,429,012)
----------- ----------- ----------- ------------
Change in shares........................ 258,115 3,181,817 403,484 5,408,293
=========== =========== =========== ============
</TABLE>

- ---------
(a) Commencement of operations of the Funds began September 20, 1996 and
September 24, 1996, respectively.

See notes to financial statements.
-16-
<PAGE> 17

THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS (78.2%):
Aerospace/Defense -- Equipment (3.0%):
11,000 General Motors-Class H........ $ 406,313
6,186 Raytheon Co.-Class A.......... 305,067
12,500 Sundstrand Corp............... 629,687
-----------
1,341,067
-----------
Air Transportation (3.0%):
5,000 AMR Corp.(b).................. 642,500
6,000 Delta Air Lines, Inc.......... 714,000
-----------
1,356,500
-----------
Automotive Parts (2.6%):
36,000 Excel Industries, Inc......... 650,250
45,000 Simpson Industries, Inc....... 528,750
-----------
1,179,000
-----------
Banking (1.8%):
18,000 Magna Group, Inc.............. 823,500
-----------
Chemicals (3.6%):
9,000 Betz Labs, Inc................ 549,563
10,000 Great Lakes Chemical Corp..... 448,750
25,000 Hanna (M. A.) Co.............. 631,250
-----------
1,629,563
-----------
Communications Equipment (1.2%):
12,000 Harris Corp................... 550,500
-----------
Computer Services (1.2%):
12,000 Electronic Data Systems
Corp........................ 527,250
-----------
Computers (2.5%):
11,500 Hewlett Packard Co............ 718,750
10,000 Sun Microsystems, Inc.(b)..... 398,750
-----------
1,117,500
-----------
Construction -- Engineering (0.8%):
10,000 Fluor Corp.................... 373,750
-----------
Cosmetics & Toiletries (1.1%):
8,000 Avon Products, Inc............ 491,000
-----------
Electrical Equipment (2.0%):
7,400 Emerson Electric Co........... 417,638
14,000 Esterline Technologies,
Corp.(b).................... 504,000
-----------
921,638
-----------
Environmental Services (1.7%):
21,100 Browning-Ferris Industries,
Inc......................... 780,700
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Financial Services (2.6%):
20,000 Alliance Capital
Management-LP............... $ 796,250
14,000 Green Tree Financial Corp..... 366,625
-----------
1,162,875
-----------
Food & Related (2.6%):
17,000 Groupe Danone -- Sponsored
ADR......................... 607,750
10,600 Quaker Oats Co................ 559,150
-----------
1,166,900
-----------
Furniture & Furnishings (0.7%):
20,000 Shelby Williams Industries,
Inc......................... 330,000
-----------
Hospital Supply & Management (0.9%):
18,000 Angelica Corp................. 407,250
-----------
Insurance (7.0%):
22,000 La Salle RE Holdings.......... 778,250
9,000 Lincoln National Corp......... 703,125
24,000 Penncorp Financial Group,
Inc......................... 856,499
20,000 Sotheby's Holdings Services,
Inc......................... 370,000
22,000 USF&G Corp.................... 485,375
-----------
3,193,249
-----------
Investment Companies (0.7%):
17,700 Conning Corp.................. 296,475
-----------
Manufacturing -- Capital Goods (1.9%):
10,000 Genuine Parts Co.............. 339,375
15,000 Modine Manufacturing Co....... 511,875
-----------
851,250
-----------
Medical Equipment & Supplies (0.7%):
10,000 Bard (C. R.), Inc............. 313,125
Medical -- Wholesale Drug Distribution (0.8%):
8,750 Bergen Brunswig Corp. Class
A........................... 368,594
-----------
Motor Vehicles (1.6%):
15,000 Ford Motor Co................. 730,313
Oil & Gas (1.1%):
7,000 Mobil Corp.................... 505,313
-----------
Oil & Gas -- Exploration/Production (3.0%):
8,000 Atlantic Richfield Co......... 641,000
15,000 Phillips Petroleum Co......... 729,375
-----------
1,370,375
-----------
Oil -- Integrated Companies (1.4%):
19,000 USX -- Marathon Group Corp.... 641,250
-----------
</TABLE>

Continued
-17-
<PAGE> 18
THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals (4.3%):
9,000 Abbott Laboratories........... $ 590,063
8,000 Bristol-Myers Squibb Co....... 756,999
6,000 Merck & Co., Inc.............. 637,500
-----------
1,984,562
-----------
Publishing (3.4%):
17,000 American Greetings Corp....... 665,125
14,000 Tribune Co.................... 871,500
-----------
1,536,625
-----------
Real Estate Investment Trust (6.2%):
22,000 Burnham Pacific Properties,
Inc......................... 336,875
20,000 CAPTEC Net Lease Realty,
Inc......................... 343,750
14,875 Equity Residential Property... 752,116
12,000 Hospitality Properties
Trust....................... 394,500
21,000 Prentiss Properties Trust..... 586,688
24,000 Thornburg Mortgage Asset
Corp........................ 396,000
-----------
2,809,929
-----------
Retail (2.6%):
20,000 Long's Drug Stores, Inc....... 642,500
12,000 Sears Roebuck & Co............ 543,000
-----------
1,185,500
-----------
Steel (1.8%):
16,800 Carpenter Technology Corp..... 807,450
-----------
Telecommunications (3.0%):
25,000 Andrew Corp.(b)............... 600,000
17,000 US West Communications,
Inc......................... 767,125
-----------
1,367,125
-----------
Textile (1.0%):
40,000 Shaw Industries, Inc.......... 465,000
-----------
Tires & Rubber Products (1.3%):
25,000 Cooper Tire & Rubber Co....... 609,375
-----------
Transportation-Misc. (1.6%):
22,200 Sea Containers Ltd.- Class
A........................... 710,400
-----------
Utilities-Electric (3.9%):
13,000 American Electric Power,
Co.......................... 671,125
16,000 Houston Industries, Inc....... 427,000
22,000 Montana Power Co.............. 699,874
-----------
1,797,999
-----------
Total Common Stocks........... 35,702,902
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
CONVERTIBLE BONDS (7.9%)
Computer Software (1.0%):
$ 500,000 Learning Co., 5.50%,
11/1/00..................... $ 441,250
-----------
Electrical & Electronic (0.6%):
300,000 Itron Inc., 6.75%, 3/31/04.... 289,875
-----------
Industrial Goods & Services (4.8%):
550,000 Integrated Device Technology,
Inc., 5.50%, 6/1/02,
Callable 6/2/98 @ 102.75.... 462,688
150,000 IVAX Corp., 6.50%, 11/15/01,
Callable 2/17/98 @ 100...... 127,875
450,000 Mascotech, Inc., 4.50%,
12/15/03, Callable 2/17/98 @
100......................... 391,500
285,000 Oryx Energy Co., 7.50%,
5/15/14, Callable 5/15/98 @
101.50...................... 290,700
400,000 Park Electrochemical Corp.,
5.50%, 3/1/06, Callable
3/1/99 @ 102.75............. 376,000
500,000 Telxon Corp., 5.75%, 1/1/03,
Callable 1/5/99 @ 103.29.... 528,125
-----------
2,176,888
-----------
Medical -- Wholesale Drug Distribution
(0.8%):
400,000 Fuisz Technologies Ltd.,
7.00%, 10/15/04............. 356,000
-----------
Restaurants (0.7%):
500,000 Boston Chicken, Inc., 7.75%,
5/1/04...................... 319,375
-----------
Total Convertible Bonds....... 3,583,388
-----------
PREFERRED STOCKS (3.6%):
Financial Services (0.7%):
14,000 Morgan Stanley -- Advanced
Micro Devices, Convertible,
10.00%...................... 308,000
-----------
Hotels & Motels (0.8%):
22,000 Signature Inns, Inc........... 363,000
-----------
Mining (0.8%):
11,000 Merrill Lynch, Strypes -- IMC
Global Convertible, 6.25%... 379,500
-----------
Retail (0.7%):
6,000 K Mart Corp., 7.75%, 6/15/16,
Callable 6/17/99 @ 52.71.... 309,750
-----------
</TABLE>

Continued
-18-
<PAGE> 19
THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
PREFERRED STOCKS, CONTINUED:
Telecommunications (0.6%):
8,000 Airtouch Communications, Inc.,
Series B, 6.00%, 8/16/99.... $ 285,000
-----------
Total Preferred Stocks........ 1,645,250
-----------
REPURCHASE AGREEMENTS (10.6%):
$4,845,416 Fifth Third Bank, Dated
12/31/97, 5.09%*, matures
1/2/98, proceeds at maturity
$4,846,786 (Collateralized
by $4,822,000 Federal
National Mortgage
Association Pool # 313004,
7.50%, 7/1/11, market value
= $4,942,550)............... 4,845,416
-----------
Total Repurchase Agreements... 4,845,416
-----------
Total Investments (Cost
$36,912,911) (a) --100.3%... $45,776,956
Liabilities in excess of other
assets (0.3)%............... 152,351
-----------
TOTAL NET ASSETS -- 100.0%.... $45,624,605
===========
</TABLE>

- ---------

Percentages indicated are based on net assets of $45,624,605.

(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:

<TABLE>
<S> <C>
Unrealized appreciation......................... $9,865,281
Unrealized depreciation......................... 1,001,236
----------
Net unrealized appreciation..................... $8,864,045
==========
</TABLE>

(b) Represents non-income producing securities.

ADR -- American Depository Receipt

* Represents variable rate security. Rate presented represents rate at December
31, 1997.

See notes to financial statements.

-19-
<PAGE> 20

THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS (92.3%):
Aerospace/Defense -- Equipment (0.3%):
5,500 Boeing Co..................... $ 269,157
510 Raytheon Co.-Class A.......... 25,157
-----------
294,314
-----------
Air Transportation (1.6%):
2,300 AMR Corp.(b).................. 295,550
9,300 Delta Air Lines, Inc.......... 1,106,700
-----------
1,402,250
-----------
Apparel (0.7%):
5,300 Russell Corp.................. 140,781
10,600 VF Corp....................... 486,938
-----------
627,719
-----------
Automotive Parts (0.9%):
5,500 Dana Corp..................... 261,250
2,800 Eaton Corp.................... 249,900
5,000 TRW, Inc...................... 266,875
-----------
778,025
-----------
Banking (2.7%):
2,900 Bank of New York, Inc......... 167,656
6,500 Bankamerica Corp.............. 474,500
4,300 Chase Manhattan Corp.......... 470,850
2,600 Crestar Financial Corp........ 148,200
10,410 First Union Corp.............. 533,512
4,800 Mellon Bank Corp.............. 291,000
2,200 Republic New York Corp........ 251,213
-----------
2,336,931
-----------
Building Materials (0.6%):
5,700 Masco Corp.................... 289,988
7,000 Owens Corning................. 238,875
-----------
528,863
-----------
Chemicals (2.6%):
5,700 Cabot Corp.................... 157,463
2,700 Dow Chemical Co............... 274,050
3,700 E. I. du Pont de Nemours &
Co.......................... 222,231
2,900 FMC Corp.(b).................. 195,206
7,500 Great Lakes Chemical Corp..... 336,563
7,200 IMC Global, Inc............... 235,800
9,800 Monsanto Corp................. 411,599
3,200 Rohm & Haas Co................ 306,400
3,540 Solutia, Inc.................. 94,474
-----------
2,233,786
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Commercial Goods & Services (2.8%):
60,450 Cendant Corp.................. $ 2,077,968
7,300 Paychek, Inc.................. 369,563
-----------
2,447,531
-----------
Computer Services (0.5%):
9,600 Electronic Data Systems
Corp........................ 421,800
-----------
Computer Software (1.7%):
9,600 Computer Associates
International, Inc.......... 507,600
11,400 Compuware Corp.(b)............ 364,800
4,300 Microsoft Corp.(b)............ 555,775
-----------
1,428,175
-----------
Computers (1.9%):
1,600 EMC Corp.(b).................. 43,900
10,300 Gateway 2000, Inc............. 336,038
7,200 International Business
Machines Corp............... 752,850
7,000 Seagate Technology, Inc.(b)... 134,750
10,000 Stratus Computer, Inc.(b)..... 378,125
-----------
1,645,663
-----------
Computers & Manufacturing Memory Devices
(0.2%):
6,600 Quantum Corp.................. 132,413
-----------
Data Processing & Reproduction (0.5%):
15,500 First Data Corp............... 453,375
-----------
Data Processing Services (0.5%):
7,600 Automatic Data Processing,
Inc......................... 466,450
-----------
Diversified Products (1.5%):
12,400 Aeroquip-Vickers Inc.......... 608,375
23,000 CBS Corp...................... 677,063
-----------
1,285,438
-----------
Electronic Components (1.8%):
7,000 Arrow Electronics, Inc.(b).... 227,063
8,200 Intel Corp.................... 576,050
15,900 Texas Instruments, Inc........ 715,500
-----------
1,518,613
-----------
Electronic Instruments (0.3%):
6,150 Tektronix, Inc................ 244,078
-----------
Engines -- Internal Combustion (0.7%):
10,800 Cummins Engine Co., Inc....... 637,875
-----------
</TABLE>

Continued
-20-
<PAGE> 21
THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Financial Services (7.2%):
7,600 Associates First Capital
Corp........................ $ 540,550
8,800 C.I.T. Group Holdings, Inc. --
Class A(b).................. 283,800
10,000 Capital One Financial Corp.... 541,875
2,300 Citicorp...................... 290,806
8,500 Countrywide Credit Industries,
Inc.-Class D................ 364,438
22,100 Federal National Mortgage
Assoc....................... 1,261,080
5,400 Merrill Lynch & Co., Inc...... 393,863
15,900 MGIC Investment Corp.......... 1,057,349
19,400 Schwab, Charles Corp.......... 813,588
10,000 Washington Mutual, Inc........ 638,125
-----------
6,185,474
-----------
Food & Related (0.8%):
8,100 IBP, Inc...................... 169,594
3,900 Sara Lee Corp................. 219,619
6,000 Universal Foods Corp.......... 253,500
-----------
642,713
-----------
Forest & Paper Products (0.9%):
9,800 Fort James Corp............... 374,850
4,700 Georgia Pacific Corp.......... 285,525
4,000 Westvaco Corp................. 125,750
-----------
786,125
-----------
Healthcare Cost Containment (0.6%):
15,100 Allegiance Corp............... 535,106
-----------
Household -- General Products (0.2%):
5,000 Tupperware Corp............... 139,375
-----------
Human Resources (0.3%):
16,400 Olsten Corp................... 246,000
-----------
Insurance (5.7%):
4,700 Allstate Corp................. 427,113
4,800 American General Corp......... 259,500
6,300 American International Group,
Inc......................... 685,124
3,200 Chubb Corp.................... 242,000
2,200 Cigna Corp.................... 380,738
7,300 Everest Reinsurance Holdings,
Inc......................... 301,125
11,700 Exel Ltd...................... 741,487
3,300 Hartford Financial Services
Group....................... 308,756
6,500 Old Republic International
Corp........................ 241,719
6,800 ReliaStar Financial Corp...... 280,075
6,200 TIG Holdings Inc.............. 205,763
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Insurance, continued:
3,150 Transatlantic Holdings,
Inc......................... $ 225,225
11,300 Travelers Group, Inc.......... 608,787
-----------
4,907,412
-----------
Internet Software & Services (1.5%):
14,700 America Online, Inc.(b)....... 1,311,056
-----------
Linen Supply & Related Items (0.2%):
5,200 Cintas Corp................... 202,800
-----------
Machine Tools & Related Products (0.6%):
9,200 Kennametal, Inc............... 476,675
-----------
Machinery & Equipment (2.3%):
9,600 Case Corp..................... 580,200
3,600 Caterpillar, Inc.............. 174,825
1,500 Deere & Co.................... 87,469
11,600 Harnischfeger Industries,
Inc......................... 409,625
4,600 Tecumseh Products Co., Class
A........................... 224,250
11,500 Thermo Electron Corp.(b)...... 511,750
-----------
1,988,119
-----------
Manufacturing (0.9%):
6,750 Parker-Hannifin Corp.......... 309,656
10,800 Tyco International Ltd........ 486,675
-----------
796,331
-----------
Medical & Hospital Management Services (0.4%):
8,400 Columbia/HCA Healthcare
Corp........................ 248,850
4,800 Vencor, Inc.(b)............... 117,300
-----------
366,150
-----------
Medical Services & Supplies (0.9%):
28,700 HEALTHSOUTH Corp.(b).......... 796,425
-----------
Medical -- Health Management Organization
(0.5%):
10,940 Foundation HealthCorp.- Class
A(b)........................ 244,782
6,100 Maxicare Health Plans,
Inc.(b)..................... 66,338
3,300 Wellpoint Health Networks..... 139,425
-----------
450,545
-----------
Medical -- Information Systems (3.2%):
57,500 HBO & Co...................... 2,760,000
-----------
Medical -- Instruments/Products (3.1%):
7,300 Beckman Instruments Inc....... 292,000
18,900 Guidant Corp.................. 1,176,525
6,500 Mallinckrodt, Inc............. 247,000
18,700 Medtronic, Inc................ 978,244
-----------
2,693,769
-----------
</TABLE>

Continued
-21-
<PAGE> 22
THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Medical -- Wholesale Drug Distribution
(0.6%):
4,925 Bergen Brunswig Corp. Class
A........................... $ 207,466
3,850 Cardinal Health, Inc.......... 289,231
-----------
496,697
-----------
Motor Vehicles (1.6%):
18,300 Ford Motor Co................. 890,981
8,000 General Motors Corp........... 485,000
-----------
1,375,981
-----------
Multimedia (0.8%):
6,600 The Walt Disney Co............ 653,813
-----------
Networking Software (1.9%):
29,850 Cisco Systems, Inc.(b)........ 1,664,138
-----------
Newspapers (0.7%):
9,700 New York Times Co., Class A... 641,413
-----------
Office Supplies & Forms (0.1%):
3,400 Standard Register Co.......... 118,150
-----------
Oil & Gas (0.9%):
25,000 Noble Drilling Corp.(b)....... 765,625
-----------
Oil & Gas -- Exploration/Production (3.7%):
3,300 Amoco Corp.................... 280,913
10,700 Anadarko Petroleum Corp....... 649,355
9,100 Atlantic Richfield Co......... 729,137
3,100 British Petroleum Co., Plc.... 247,031
15,400 Cross Timbers Oil Co.......... 384,037
6,000 Ocean Energy, Inc.(b)......... 295,875
6,300 Phillips Petroleum Co......... 306,338
5,800 Repsol SA..................... 246,863
-----------
3,139,549
-----------
Oil & Gas Drilling (0.5%):
14,200 Nabors Industries, Inc.(b).... 446,413
-----------
Oil & Gas Services (4.6%):
18,800 Baker Hughes, Inc............. 820,150
16,300 Halliburton Co................ 846,581
18,700 Rowan Cos., Inc.(b)........... 570,350
21,000 Schlumberger Ltd.............. 1,690,499
-----------
3,927,580
-----------
Oil -- Refining & Marketing (0.3%):
6,900 Ultramar Diamond Shamrock
Corp........................ 219,938
-----------
Pharmaceuticals (6.3%):
34,600 Lilly, Eli & Co............... 2,409,024
24,500 Pfizer Inc.................... 1,826,781
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, continued:
11,200 Somatogen, Inc.(b)............ $ 49,700
9,100 Warner Lambert Co............. 1,128,400
-----------
5,413,905
-----------
Railroad (0.3%):
4,100 CSX Corp...................... 221,400
-----------
Restaurants (1.1%):
24,200 Starbucks Corp.(b)............ 928,675
-----------
Retail (8.6%):
14,400 Borders Group, Inc.(b)........ 450,900
6,400 Circuit City Stores, Inc...... 227,600
11,100 CVS Corp...................... 711,094
7,800 Dayton Hudson Corp............ 526,500
5,700 Dillards Inc., Class A........ 200,925
6,800 Federated Department Stores,
Inc.(b)..................... 292,825
25,600 Home Depot, Inc............... 1,507,199
7,500 Kohl's Corp.(b)............... 510,938
16,000 Price/Costco Inc.(b).......... 714,000
14,100 Safeway, Inc.(b).............. 891,824
8,200 Sears Roebuck & Co............ 371,050
22,600 TJX Cos., Inc................. 776,875
8,000 Toys "R" Us, Inc.(b).......... 251,500
-----------
7,433,230
-----------
Steel (0.3%):
7,200 Inland Steel Industries,
Inc......................... 123,300
7,800 National Steel Corp., Class
B(b)........................ 90,188
-----------
213,488
-----------
Telecommunications (2.5%):
6,600 Lucent Technologies, Inc...... 527,175
20,800 NEXTEL Communications,
Inc.(b)..................... 540,800
29,733 Tele-Communications,
Inc.(b)..................... 830,666
5,200 Tellabs, Inc.(b).............. 274,950
-----------
2,173,591
-----------
Telecommunications -- Equipment (0.8%):
11,900 Ciena Corp.(b)................ 727,388
-----------
Textile (0.3%):
5,000 Springs Industries, Inc....... 260,000
-----------
Tires & Rubber Products (0.7%):
9,300 Goodyear Tire & Rubber Co..... 591,713
-----------
</TABLE>

Continued
-22-
<PAGE> 23
THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Tobacco (1.3%):
13,200 Philip Morris Cos., Inc....... $ 598,125
13,000 RJR Nabisco Holdings Corp..... 487,500
-----------
1,085,625
-----------
Toys (0.4%):
9,300 Mattel, Inc................... 346,425
-----------
Transportation -- Air (0.5%):
7,300 Federal Express Corp.(b)...... 445,756
-----------
Utilities -- Electric (1.4%):
8,100 AES Corporation(b)............ 377,662
3,100 CINergy Corp.................. 118,769
4,800 DTE Energy Co................. 166,500
2,611 Duke Energy Corp.............. 144,584
5,600 Entergy Corp.................. 167,650
4,600 GPU, Inc...................... 193,775
-----------
1,168,940
-----------
Utilities -- Telephone (1.0%):
14,300 AT & T Corp................... 875,875
-----------
Total Common Stocks........... 79,502,682
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
PREFERRED STOCKS (0.4%):
Oil & Gas (0.4%):
8,800 YPF Sociedad Anonima-Sponsored
ADR......................... $ 300,850
-----------
Total Preferred Stocks........ 300,850
-----------
REPURCHASE AGREEMENTS (8.6%):
$7,423,208 Fifth Third Bank, Dated
12/31/97, 5.09%*, matures
1/2/98, proceeds at maturity
$7,425,307 (Collateralized
by $7,416,000 Federal
National Mortgage
Association 7.00%-7.50%,
7/1/11-7/18/24, market value
= $7,573,275)............... 7,423,208
-----------
Total Repurchase Agreements... 7,423,208
-----------
Total (Cost $70,004,130) (a)--
101.2%...................... $87,226,740
Liabilities in excess of other
assets (1.2)%............... (1,064,107)
-----------
TOTAL NET ASSETS -- 100.0%.... $86,162,633
===========
</TABLE>

- ---------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:

<TABLE>
<S> <C>
Unrealized appreciation......................... $18,822,621
Unrealized depreciation......................... 1,600,011
-----------
Net unrealized appreciation..................... $17,222,610
===========
</TABLE>

(b) Represents non-income producing securities

ADR -- American Depository Receipt

* Represents variable rate security. Rate presented represents rate at December
31, 1997.

See notes to financial statements.

-23-
<PAGE> 24

THE SESSIONS GROUP
1ST SOURCE MONOGRAM SPECIAL EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS (76.5%):
Aerospace/Defense -- Equipment (1.7%):
15,000 AAR Corp...................... $ 581,250
-----------
Air Transportation (3.9%):
22,500 Comair Holdings, Inc.......... 542,813
31,500 Southwest Airlines Co......... 775,687
-----------
1,318,500
-----------
Automotive Parts (2.1%):
17,000 Tower Automotive, Inc.(b)..... 715,063
-----------
Banking (3.9%):
11,000 Bank United Corp., Class A.... 538,313
6,000 Provident Bankshares Corp..... 383,250
6,000 Webster Financial Corp........ 399,000
-----------
1,320,563
-----------
Batteries & Battery Systems (0.2%):
19,000 Electric Fuel Corp.(b)........ 68,875
-----------
Commercial Goods & Services (1.6%):
22,000 ABR Information Services,
Inc.(b)..................... 525,250
-----------
Computer Software (9.7%):
25,000 CCC Information Services
Group, Inc.(b).............. 493,750
14,000 Citrix Systems, Inc.(b)....... 1,063,999
55,000 Dataware Technologies,
Inc.(b)..................... 144,375
30,000 Forte Software, Inc.(b)....... 228,750
60,000 Geoworks, Inc.(b)............. 577,500
300 I2 Technologies, Inc.(b)...... 15,825
17,000 JDA Software Group, Inc.(b)... 595,000
52,500 Qualix Group, Inc.(b)......... 155,859
-----------
3,275,058
-----------
Computers & Integrated Systems (1.6%):
19,000 Radiant Systems Inc.,......... 541,500
-----------
Cruise Lines (1.3%):
8,000 Royal Caribbean Cruises
Ltd......................... 426,500
-----------
Data Processing & Reproduction (1.4%):
14,000 Analytical Surveys, Inc.(b)... 479,500
-----------
Drug Delivery Systems (0.9%):
16,000 Alkermes, Inc.(b)............. 318,000
-----------
Electronic Components (5.5%):
9,500 Rambus, Inc................... 434,625
19,500 Sawtek, Inc.(b)............... 514,313
73,500 Sonic Solutions, Inc.(b)...... 330,750
28,000 Triquint Semiconductor,
Inc.(b)..................... 567,000
-----------
1,846,688
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Financial Services (3.6%):
18,000 ITLA Capital Corp.(b)......... $ 346,500
12,000 Mego Mortgage Corp.(b)........ 48,750
22,500 Ocwen Asset Investment
Corp.(b).................... 461,250
36,000 Warrentec Corp.(b)............ 351,000
-----------
1,207,500
-----------
Human Resources (1.2%):
21,900 SOS Staffing Services,
Inc.(b)..................... 413,363
-----------
Identification Systems (0.7%):
37,500 Viisage Technology, Inc....... 217,969
-----------
Instruments-Scientific (0.9%):
19,000 Molecular Dynamics, Inc....... 308,750
-----------
Leisure & Recreational Products (2.3%):
17,600 Cannondale Corp.(b)........... 382,800
18,200 North Face, Inc.(b)........... 400,400
-----------
783,200
-----------
Medical & Hospital Management Services (1.5%):
30,000 Orthodontic Centers Of
America, Inc.,(b)........... 498,750
-----------
Medical Services & Supplies (2.3%):
28,000 HEALTHSOUTH Corp.(b).......... 777,000
-----------
Medical--Biotechnology (2.0%):
16,000 Sonus Pharmaceuticals,
Inc.(b)..................... 530,000
15,000 Zymetx, Inc.(b)............... 150,000
-----------
680,000
-----------
Medical--Hospitals (0.3%):
49,000 Integrated Medical
Resources(b)................ 91,875
-----------
Medical--Instruments/Products (0.4%):
20,000 Spectrx, Inc.(b).............. 135,000
-----------
Oil & Gas -- Exploration/Production (1.2%):
14,000 COHO Energy, Inc.(b).......... 127,750
28,000 Unit Corp.(b)................. 269,500
-----------
397,250
-----------
Oil & Gas Services (5.9%):
24,000 Global Marine, Inc.(b)........ 588,000
36,200 Newpark Resources, Inc.(b).... 633,500
30,000 Pride International,
Inc.(b)..................... 757,499
-----------
1,978,999
-----------
Paper Products (0.8%):
7,200 Schweitzer-Mauduit
International, Inc.......... 268,200
-----------
</TABLE>

Continued
-24-
<PAGE> 25
THE SESSIONS GROUP
1ST SOURCE MONOGRAM SPECIAL EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals (3.4%):
24,000 Columbia Laboratories,
Inc.(b)..................... $ 380,999
21,000 Martek Bioscience Corp.(b).... 173,250
25,500 Perrigo Co.(b)................ 341,063
22,500 Vivus, Inc.(b)................ 239,063
-----------
1,134,375
-----------
Real Estate Investment Trust (1.6%):
15,000 Imperial Credit Commercial.... 219,375
22,000 Prime Retail, Inc............. 312,125
-----------
531,500
-----------
Retail (2.0%):
11,500 Casey's General Stores,
Inc......................... 291,813
15,000 Regis Corp.................... 376,875
-----------
668,688
-----------
Retail Automotive (0.8%):
31,000 Ugly Duckling Corp.(b)........ 263,500
-----------
Savings & Loans (9.2%):
18,000 Dime Community Bancorp,
Inc.(b)..................... 427,500
13,300 First Bell Bancorp, Inc....... 252,700
14,500 GS Financial Corp............. 302,688
9,000 Mercantile Bankshares Corp.... 352,125
8,000 Peoples Heritage Financial
Group....................... 368,000
2,500 SIS Bancorp, Inc.............. 100,469
21,937 St. Paul Bancorp, Inc......... 575,845
23,000 Virginia Beach Federal
Financial Corp.............. 422,625
15,000 WSFS Financial Corp.(b)....... 300,000
-----------
3,101,952
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Software (0.9%):
18,500 UOL Publishing, Inc.(b)....... $ 305,250
-----------
Steel (0.7%):
15,000 Steel Dynamics, Inc.(b)....... 240,000
-----------
Telecommunication & Satellite (0.7%):
14,500 Echostar Communications
Corp.(b).................... 242,875
-----------
Television (0.5%):
30,000 Cellular Vision USA,
Inc.(b)..................... 180,000
-----------
Total Common Stocks........... 25,842,743
-----------
WARRANTS (0.0%):
5,000 Alza Corp.(b)................. 938
-----------
Total Warrants................ 938
-----------
REPURCHASE AGREEMENTS (23.6%):
$7,970,482 Fifth Third Bank, Dated
12/31/97, 5.09%*, matures
1/2/98, proceeds at maturity
$7,972,736 (Collateralized
by $7,932,000 Federal
National Mortgage
Association Pool # 313004,
7.50%, 7/1/11, market value
= $8,130,300)............... 7,970,482
Total Repurchase Agreements... 7,970,482
-----------
Total (Cost $32,099,901)
(a)......................... $33,814,163
===========
</TABLE>

- ---------

Percentages indicated are based on net assets of $33,792,421.

(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:

<TABLE>
<S> <C>
Unrealized appreciation......................... $ 4,740,791
Unrealized depreciation......................... 3,026,529
-----------
Net unrealized appreciation..................... $ 1,714,262
===========
</TABLE>

(b) Represents non-income producing securities

* Represents variable rate security. Rate presented represents rate at December
31, 1997.

See notes to financial statements.

-25-
<PAGE> 26

THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (3.3%):
Banking (3.3%):
$2,000,000 First Union Residential
Securitization, 6.46%,
9/25/11..................... $ 2,002,360
-----------
Total Collateralized Mortgage
Obligations................. 2,002,360
-----------
CORPORATE BONDS (33.1%):
Banking (1.7%):
1,000,000 Firstar Corp., 7.15%, 9/1/00,
Callable 9/1/98 @ 100....... 1,007,041
-----------
Financial Services (13.5%):
1,000,000 Associates Corp., 6.75%,
7/15/01..................... 1,016,685
1,000,000 Bear Stearns Co.,Inc., 7.63%,
4/15/00..................... 1,031,496
1,250,000 General Electric Capital
Corp., 8.65%, 5/15/09....... 1,495,216
1,500,000 IBM Credit Corp., 6.75%,
12/24/07.................... 1,502,340
1,000,000 Merrill Lynch, 6.55%,
8/1/04...................... 1,011,791
1,000,000 Salomon Smith Barney, 7.88%,
10/1/99..................... 1,026,196
1,000,000 Salomon, Inc., 7.00%,
1/20/98..................... 1,000,365
-----------
8,084,089
-----------
Industrial Goods & Services (9.4%):
1,000,000 Honeywell, Inc., 7.13%,
4/15/08..................... 1,057,944
1,500,000 Smithkline Beecham Corp.,
7.50%, 5/1/02............... 1,508,852
2,000,000 Texas Instruments, Inc.,
6.88%, 7/15/00.............. 2,038,218
1,000,000 Union Pacific Resources Group,
Inc., 7.00%, 10/15/06....... 1,030,327
-----------
5,635,341
-----------
Motor Vehicles (3.5%):
2,000,000 Ford Motor Co., 7.25%,
10/1/08..................... 2,123,648
-----------
Paper Products (1.7%):
1,000,000 International Paper Co.,
7.00%, 6/1/01............... 1,022,384
-----------
Tobacco (3.4%):
2,000,000 Philip Morris Cos., Inc.,
6.80%, 12/1/03.............. 2,024,326
-----------
Total Corporate Bonds......... 19,896,829
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES (40.5%):
Federal Home Loan Bank (6.7%):
2,000,000 5.88%, 2/26/98................ $ 1,999,498
2,000,000 6.25%, 10/29/01............... 1,993,400
-----------
3,992,898
-----------
Federal Home Loan Mortgage Corporation (18.6%):
1,000,000 8.41%, 12/7/01................ 1,023,944
3,000,000 6.65%, 7/31/02................ 3,008,040
1,000,000 8.63%, 11/29/04, Callable
11/29/99 @ 100.............. 1,036,463
3,000,000 6.89%, 9/26/05................ 3,049,728
1,000,000 7.20%, 7/31/07................ 1,004,867
1,000,000 7.00%, 8/15/07, CMO........... 1,023,679
1,000,000 6.50%, 2/15/08, CMO........... 1,014,437
-----------
11,161,158
-----------
Federal National Mortgage Association
(15.3%):
3,000,000 6.25%, 8/12/03................ 2,971,863
2,000,000 6.97%, 4/8/04................. 2,098,622
3,000,000 8.63%, 11/10/04............... 3,099,513
1,000,000 7.02%, 4/10/06................ 1,019,748
-----------
9,189,746
-----------
Total U.S. Government
Agencies.................... 24,343,802
-----------
PREFERRED STOCKS (5.2%):
Banking (0.9%):
20,000 Banker's Trust Corp., 8.13%,
2/1/37...................... 521,250
-----------
Electrical & Electronic (1.7%):
40,000 Southwestern Public Service
Co., Series A, 7.85%,
10/21/01.................... 1,037,500
-----------
Financial Services (0.9%):
20,000 Ml Capital Trust, 8.00%,
3/30/07..................... 535,000
-----------
Food & Related (1.7%):
40,000 McDonald's Corp., 7.50%,
9/30/36, Callable 12/31/01 @
25.00....................... 1,032,500
-----------
Total Preferred Stocks........ 3,126,250
-----------
</TABLE>

Continued
-26-
<PAGE> 27
THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
(UNAUDITED)

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
REPURCHASE AGREEMENT (16.6%):
$9,944,477 Fifth Third Bank, Dated
12/31/97, 5.09*%, matures
1/2/98, proceeds at maturity
$9,947,289 (Collateralized
by $10,097,000 Federal
National Mortgage
Association, 7.00%-7.50%,
7/1/11-7/18/24, market value
= $10,143,500).............. $ 9,944,477
-----------
Total Repurchase Agreement.... 9,944,477
-----------
Total Investments(Cost
$58,498,304) (a) -- 98.7%... 59,313,718
Other assets in excess of
liabilities 1.3%............ 769,389
-----------
TOTAL NET ASSETS -- 100.0%.... $60,083,107
===========
</TABLE>

- ---------

Percentages indicated are based on net assets of $60,083,107.

(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:

<TABLE>
<S> <C>
Unrealized appreciation......................... $ 927,918
Unrealized depreciation......................... 112,504
---------
Net unrealized depreciation..................... $ 815,414
=========
</TABLE>

* Represents variable rate security. Rate presented represents rate at December
31, 1997.

CMO -- Collateralized Mortgage Obligation

See notes to financial statements.

-27-
<PAGE> 28

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
(UNAUDITED)

1. ORGANIZATION:

The Sessions Group (the "Group") was organized on April 25, 1988 as an Ohio
business trust, and is registered under the Investment Company Act of 1940
as amended (the "1940 Act"), as an open-end management investment company.
The Group is authorized to issue an unlimited number of shares which are
units of beneficial interest without par value. The Group offers shares of
a number of different series or portfolios including the following series
for which 1st Source Bank serves as investment adviser: 1st Source Monogram
Income Equity Fund, the 1st Source Monogram Diversified Equity Fund, 1st
Source Monogram Special Equity Fund, and the 1st Source Monogram Income
Fund, (collectively, the "Funds" and individually, a "Fund").

The investment objectives of the Income Equity Fund are capital
appreciation with current income as a secondary objective. The investment
objective for each of the Diversified Equity Fund and the Special Equity
Fund is capital appreciation. The investment objectives of the Income Fund
are current income consistent with preservation of capital.

Sales of shares of the Funds may be made by the Group's distributor, BISYS
Fund Services Limited Partnership d/b/a BISYS Fund Services, to customers
of 1st Source Bank and its affiliates, to all accounts of correspondent
banks of 1st Source Bank and to the general public.

2. SIGNIFICANT ACCOUNTING POLICIES:

The following is a summary of significant accounting policies followed by
the Group in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The
preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of income
and expenses for the period. Actual results could differ from those
estimates.

SECURITIES VALUATION:

Investments in common and preferred stocks, corporate bonds, commercial
paper, municipal securities and U.S. Government securities of the Funds are
valued at their market values determined on the basis of the current
available prices in the principal market (closing sales prices if the
principal market is an exchange or NASDAQ National Market) in which such
securities are normally traded. Investments in investment companies are
valued at their net asset values as reported by such companies. Other
securities for which quotations are not readily available are valued at
their fair value under procedures established by the Group's Board of
Trustees. Investments in debt securities with remaining maturities of 60
days or less may be valued based upon the amortized cost method.

SECURITY TRANSACTIONS AND RELATED INCOME:

Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the amortization of premium
or

Continued
-28-
<PAGE> 29
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
DECEMBER 31, 1997
(UNAUDITED)

discount. Dividend income is recorded on the ex-dividend date. Gains or
losses realized on sales of securities are determined on the basis of
identified cost.

REPURCHASE AGREEMENTS:

The Funds may acquire repurchase agreements from financial institutions
such as banks and broker-dealers which 1st Source Bank deems creditworthy
under guidelines approved by the Board of Trustees, subject to the seller's
agreement to repurchase such securities at a mutually agreed-upon date and
price. The repurchase price generally equals the price paid by each Fund
plus interest negotiated on the basis of current short-term rates, which
may be more or less than the rate on the underlying portfolio securities.
The seller, under a repurchase agreement, is required to maintain the value
of collateral held pursuant to the agreement at not less than the
repurchase price (including accrued interest). Securities subject to
repurchase agreements are transferred to an account of the Fund at a bank
custodian.

REVERSE REPURCHASE AGREEMENTS:

The Funds may borrow for short term purposes by entering into reverse
repurchase agreements. Pursuant to such agreements, a Fund would sell
portfolio securities to financial institutions such as banks and broker-
dealers, and agree to repurchase them at a mutually agreed-upon date and
price. At the time a Fund enters into a reverse repurchase agreement, the
Fund identifies cash and liquid securities as segregated in its records
having a value equal to the repurchase price (including accrued interest),
and will continually monitor the account to ensure such equivalent value is
maintained at all times.

DERIVATIVES:

A derivative is defined as a financial instrument whose value is derived
from the performance of underlying assets, interest rate and currency
exchange rates, or indices, and include (but are not limited to) structured
debt obligations, interest rates, future contracts, options, and forward
currency contracts. The Funds may invest in structured debt obligations for
the purpose of mitigating interest rate risk in the portfolio. Such
structured debt obligations have floating interest rates that reset to
various indices, which may include swap rates or floors, and which reset at
periodic intervals, as disclosed in the accompanying Schedules of Portfolio
Investments. Risks of entering into such transactions include the potential
inability of the dealer to meet their obligations and unanticipated
movements in the value of the security or the underlying assets or indices.
It is possible that the Funds will incur a loss as a result of their
investments in derivative instruments. It is the Fund's policy, to the
extent that there exists no readily available market for such securities,
that the investment will be treated as an illiquid security for purposes of
calculating the Funds' limitation on investments in illiquid securities as
set forth in the Funds' investment restrictions.

Continued
-29-
<PAGE> 30
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
DECEMBER 31, 1997
(UNAUDITED)

DIVIDENDS TO SHAREHOLDERS:

A dividend for each of the Funds, other than the Special Equity Fund, is
declared and generally paid monthly. A dividend for the Special Equity Fund
is declared quarterly and generally paid quarterly. Distributable net
realized capital gains for each Fund, if any, are distributed at least
annually.

Dividends from net investment income and net realized capital gains are
determined in accordance with Federal income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for net investment losses, expiring
capital loss carry forwards, and deferral of certain losses.

ORGANIZATION COSTS:

All expenses in connection with each Fund's organization and registration
under the 1940 Act and the Securities Act of 1933 were paid by that Fund.
Such expenses are amortized over a period of five years commencing with the
date of the initial public offering.

3. PURCHASES AND SALES OF SECURITIES:

Purchases and sales of securities (excluding short-term securities) for the
six months ended December 31, 1997, are as following:

<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Income Equity Fund.............................. $13,774,716 $14,431,022
Diversified Equity Fund......................... 40,324,487 38,591,559
Special Equity Fund............................. 15,703,593 15,560,172
Income Fund..................................... 16,518,593 20,711,531
</TABLE>

4. RELATED PARTY TRANSACTIONS:

Investment advisory services are provided to the Funds by 1st Source Bank.
Under the terms of the investment advisory agreement, 1st Source Bank is
entitled to receive fees based on a percentage of the average net assets of
each Fund.

BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services
("BISYS"), an Ohio limited partnership, and BISYS Fund Services, Inc.
("BISYS Services") are subsidiaries of The BISYS Group, Inc.

BISYS, with whom certain officers and trustees of the Group are affiliated,
serves the Funds as administrator and distributor. Such officers and
trustees are paid no fees directly by the Funds for serving as officers and
trustees of the Group. Under the terms of the administration agreement,
BISYS's fees are computed daily as a percentage of the average net assets
of each Fund. BISYS Fund Services, Inc. serves the Funds as transfer agent
and mutual fund accountant.

Continued
-30-
<PAGE> 31
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
DECEMBER 31, 1997
(UNAUDITED)

The Group has adopted a Distribution and Shareholder Service Plan in
accordance with Rule 12b-1 under the 1940 Act, pursuant to which each Fund
is authorized to pay or reimburse BISYS, as distributor, a periodic amount,
calculated at an annual rate not to exceed 0.25% of the average daily net
asset value of each Fund. These fees may be used by BISYS to pay banks,
including 1st Source Bank, broker-dealers and other institutions, or to
reimburse BISYS or its affiliates, for distribution and shareholder
services in connection with the distribution of Fund shares.

The Group has adopted an Administrative Services Plan, pursuant to which
each Fund is authorized to pay compensation to banks and other financial
institutions, which may include 1st Source Bank, its correspondent and
affiliated banks and BISYS, for providing ministerial, record keeping
and/or administrative support services to their customers who are the
beneficial or record owners of a Fund. The compensation which may be paid
under the Administrative Services Plan is a fee computed daily at an annual
rate of up to 0.25% of the average net asset, of each Fund. The Group has
not implemented such a plan as of December 31, 1997.

BISYS is also entitled to receive commissions on sales of shares of the
Funds. For the period ended December 31, 1997, BISYS received $906 from
commissions earned on sales of shares of the Funds, of which $541 was
reallowed to broker/dealers affiliated with 1st Source Bank.

Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios.

Continued
-31-
<PAGE> 32
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
DECEMBER 31, 1997
(UNAUDITED)

Information regarding these transactions is as follows for the period ended
December 31, 1997:

<TABLE>
<CAPTION>
INCOME DIVERSIFIED SPECIAL
EQUITY EQUITY EQUITY INCOME
FUND FUND FUND FUND
------- ----------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY:
Annual fee before voluntary fee reductions
(percentage of average net assets)........ .80% 1.10% .80% .55%
Voluntary fee reductions.................... -- -- -- --
ADMINISTRATION FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)........ .20% .20% .20% .20%
Voluntary fee reductions.................... -- -- -- --
12B-1 FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)........ .25% .25% .25% .25%
Voluntary fee reductions.................... $55,240 $105,068 $42,640 $73,064
FUND ACCOUNTING FEES........................ $ 7,899 $ 17,024 $ 6,630 $10,608
TRANSFER AGENT FEES......................... $20,441 $ 22,869 $18,400 $21,160
</TABLE>

-32-
<PAGE> 33

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

FINANCIAL HIGHLIGHTS

RATIOS /SUPPLEMENTAL DATA:
Net Assets, at end of period (000)...... $45,625 $39,196 $ 86,163 $ 74,990
Ratio of expenses to average net assets
(c).................................. 1.22% 1.37% 1.50% 1.62%
Ratio of net investment income (loss) to
average net assets (c)............... 2.37% 2.38% (0.15)% (0.10)%
Ratio of expenses to average net assets*
(c).................................. 1.47% 1.62% 1.75% 1.87%
Ratio of net investment income (loss) to
average net assets* (c).............. 2.12% 2.13% (0.40)% (0.35)%
Portfolio Turnover Rate................. 34.78% 38.49% 50.97% 76.54%
Average Broker Commission Paid (e)...... $0.1018 $0.0988 $ 0.0573 $ 0.0572
</TABLE>

- ---------

* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.

(a) Commencement of operations of the Funds began September 25, 1996 and
September 23, 1996, respectively.

(b) Not annualized

(d) The amount shown for a share outstanding throughout the period does not
accord with the change in the aggregate gains and losses in the portfolio
of securities during the period because of the timing of sales and
purchases of Fund shares in relation to fluctuating market values during
the period.

(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.

NA Not Applicable

See notes to financial statements.
-33-
<PAGE> 34

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

FINANCIAL HIGHLIGHTS

RATIOS /SUPPLEMENTAL DATA:
Net Assets, at end of period (000)....... $33,792 $30,524 $60,083 $54,789
Ratio of expenses to average net assets
(c)................................... 1.27% 1.39% 0.93% 1.05%
Ratio of net investment income (loss) to
average net assets (c)................ 0.00% 0.05% 6.10% 5.71%
Ratio of expenses to average net assets*
(c)................................... 1.52% 1.65% 1.18% 1.30%
Ratio of net investment income (loss) to
average net assets* (c)............... (0.25)% (0.21)% 5.85% 5.46%
Portfolio Turnover Rate.................. 55.88% 152.81% 30.91% 118.33%
Average Broker Commission Paid (e)....... $0.0926 $0.0941 NA NA
</TABLE>

- ---------

* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.

(a) Commencement of operations of the Funds began September 20, 1996 and
September 24, 1996, respectively.

(b) Not annualized

(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.

NA Not Applicable

See notes to financial statements.

-34-
<PAGE> 35
SEMI-ANNUAL REPORT

[LOGO - 1ST SOURCE MONOGRAM FUNDS]

INVESTMENT ADVISER
1ST SOURCE BANK
100 NORTH MICHIGAN STREET
SOUTH BEND, IN 46601

DISTRIBUTOR
BISYS FUND SERVICES
3435 STELZER ROAD
COLUMBUS, OH 43219

FOR ADDITIONAL INFORMATION, CALL:
1-800-766-8938

THIS MATERIAL MUST BE PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS.

[LOGO - 1ST SOURCE MONOGRAM FUNDS]

SEMI-ANNUAL REPORT

DECEMBER 31, 1997

2/98