SESSIONS GROUP, N-30D, 1998-08-31

SESSIONS GROUP
N-30D, 1998-08-31

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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Dear Investor:

We are pleased to present this annual report for the 12 months ended June 30,
1998, a year that presented investors with breathtaking challenges and
remarkable opportunities.

With the domestic markets up considerably since last June, it is almost hard to
remember that barely eight months ago the Dow Jones Industrial Average suffered
its largest, single-day point loss ever: a decline of 554 points on October 27,
1997. At the time, fears of a huge market correction were rampant, and
stock-market bears could hardly contain their glee.

Yet, domestic stocks righted themselves almost immediately and ended calendar
year 1997 with the Dow at a then-lofty 7908. As I write this letter in the
middle of July, the Dow has since added another 1400 points, closing above 9300
this past week for the first time in history. Many of the other major market
indices, including the S&P 500 and Nasdaq, have reached new highs, as well.
However, small- and mid-cap stocks, as represented by the Russell 2000 Index,
have been out of favor for several months now.

Bonds also delivered strong returns, supported throughout the period by falling
interest rates, virtually nonexistent inflation and huge inflows of capital from
foreign investors seeking a "safe haven" from the economic convulsions in Asia.

STOCKS: HOW HIGH IS HIGH?

On the face of it, the market appears to be trying to teach us new lessons about
how to determine the fundamental value of a stock. While there are no infallible
formulas, and fund managers can reach different conclusions about the same set
of data, it is generally considered prudent to buy stocks that are selling for
less than their true value, and to avoid those that are overvalued. Different
valuation measures, or combinations of measures, can be employed:
price-to-earnings (P/E), price-to-sales, price-to-book value, price-to-free cash
flow, price-to-earnings relative to expected earnings growth, and so on. But one
factor appears in every valuation method: buy when the price is low relative to
the growth of the company.

As the stock market has continued to reach new highs, as defined by the major
indices (Dow Jones Industrial Average and the S&P 500), and especially over the
last six to 12 months, a vast majority of the growth has been confined to a
small handful of very large stocks. These issues boast huge market
capitalizations (stock price times the number of outstanding shares) and prices
that exceed 30 or 40 times earnings. In some cases, 50 times earnings has been
reached and these few and very large companies receiving the large P/Es are
driving the advance of market indices. In other words, it is these few stocks,
with almost no help from the thousands of other publicly traded equities, that
have been propelling the market higher for much of the last year, and, to a
slightly lesser extent, for the last three years.

Another common trait among the market leaders is that they are all highly
recognizable companies. Many investors, particularly Americans new to stocks and
foreign players fleeing instability in other world sources, are buying what they
know. Familiarity breeds affection.

In a market that is driven by liquidity it is hard to go against the flow
without drowning. Yet, as a fund family, we have done well, providing solid
returns while keeping as tight a lid as possible on volatility and risk. And we
look ahead with anticipation to the day when the investment waters resume their
natural course. The most dangerous words we know are, "This time it's
different." It is a refrain that we hear more and more these days, but this
mantra could quickly turn into an epitaph.

BONDS: RELATIVELY SAFE AND SECURE

Fixed-income investments rarely produce the fireworks that equities do, and
that's the case once again as we enter a new fiscal year. Nonetheless, bonds
generated some excitement and drew an

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MESSAGE FROM THE INVESTMENT ADVISER 1st Source Monogram Funds
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inordinate amount of attention during the last 12 months. As the crisis in Asia
worsened in the fourth calendar quarter of 1997, many investors moved into U.S.
Treasury securities for their relatively high yields and unquestionable quality.
This increase in demand sent bond prices higher which resulted in a decline in
the yield of the 30-year Treasury and other longer term securities.

Curiously, while market forces drove down rates on the long end of the yield
curve, the Federal Reserve kept the fed funds rate (the rate banks charge one
another on overnight loans) at an artificially high 5.5% for the entire period.
At times, these circumstances produced a slightly "inverted" yield curve, which
meant that some shorter-term securities paid more interest than longer-term
issues.

INVESTMENT OVERVIEWS

This annual report lists the schedule of investments for the Funds, along with
financial highlights and complete financial statements. We have also provided
interviews with our fund managers--in which each manager discusses the factors
that affected performance during the last 12 months, how specific strategies
were employed, interesting securities in their respective portfolios, and
outlooks for the financial markets in the coming months. By reading the
interviews and financial information for the fund or funds in which you invest,
you can gain a better understanding of how your money is being managed.

As always, it is our wish to provide you with open channels of communication so
that you may have your questions answered and your financial needs met. Feel
free to contact your account representative, or call the Funds directly at
1-800-766-8938.

We thank you for your continued trust and support.

Sincerely,

Ralph Shive, CFA

NOTE TO SHAREHOLDERS
PLEASE BE ADVISED OF THE FOLLOWING FACTS ABOUT MUTUAL FUNDS:
- YOUR PRINCIPAL IS AT RISK
- NOT AN OBLIGATION OF 1ST SOURCE BANK
- NO FDIC COVERAGE

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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 12 months ended June 30, 1998, the Fund's total return was 18.15%
(without sales load). In comparison, the Russell 1000 Value Index rose
28.84%, and the Lipper Equity Income Average gained 21.25%.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. Most of the difference between the Fund's returns and those of its
benchmarks came during the final two months of the period and can be
attributed to what we might call "Act II" of the Asian crisis. Due to the
continuing fallout from Asia, a lot of cyclical stocks--including some of
the energy and manufacturing names in our portfolio--declined significantly.
Surprisingly, a lot of our interest-rate sensitive stocks, such as real
estate investment trusts (REITs) and bank stocks, did not perform, even when
interest rates fell. However, our electric utility holdings did benefit from
the decline in rates. The Fund also suffered from the fact that market
leadership was very narrowly focused on just a handful of the largest
stocks--very liquid issues with high price-to-earnings ratios--and those
stocks generally did not fit our selection criteria.

On the plus side, the Fund benefited from the fact that a number of
companies whose stock we held were taken over during the last 12 months.
MAPCO, Bergen Brunswig, Telxon Convertible, Magna Group--all of these stocks
rose sharply when the companies were acquired. (The Fund no longer holds the
shares of any of these stocks.) What is significant is that these companies
were all in different industries, which speaks to the breadth of merger
activity we saw during the period. Corporate acquisitions were a big part of
the market's advance during the last year.

Q. HOW DID YOU APPLY YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. We continued to pursue our main objectives: to seek to provide a yield
higher than that of the Standard & Poor's 500, while investing in
inexpensive stocks that we believe have the potential for significant
growth. As of June 30, 1998, the Fund's 30-day SEC yield was 2.30% (without
sales load),(1) compared to the S&P's yield of 1.4%. Shareholders who were
with us for the entire 12-month period realized total returns that were high
by historical standards.

One sector that did well for us, in which we have invested for a couple of
years, was the airlines group, including AMR (1.58% of the Fund's
portfolio*) and Delta (1.47%). On the consumer side, Ford Motor (1.68%)
turned in an exceptional performance, rising 80% during the last six months
alone. Tribune (1.83%), the diversified media company, also rose sharply.
Many of our long-term holdings put up strong numbers.

Q. WHAT ARE SOME OTHER INTERESTING STOCKS IN YOUR PORTFOLIO?
A. We are enthusiastic about two recent purchases: Budget Group Convertible
Preferred (1.10% of the Fund's portfolio*) and Ryder (0.84%). Both companies
are in the transportation and business services sector; and they are
domestically oriented, so the fallout from Asia may not affect them
adversely. In the money-management business, which we have liked for some
time, we bought Waddell and Reed (1.46%). And as a demographic health-care
play, we bought Sunrise Assisted Living Convertible (1.02%)--the company
runs homes for elderly residents who do not have severe medical
conditions--which may benefit from the aging of the Baby Boomer population.

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Q. WHAT IS YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. We believe Asia is a major wild card; the region's problems could spread to
Latin America and even Europe, and affect the earnings of American
multinational corporations. We also are concerned with the market's
price-to-earnings (P/E) levels; the "P" is going up faster than the "E."
Here we are, with the S&P 500 Index up nearly 20% for the year, and earnings
growth is projected at only about 5% to 6%. So on a short-term basis, we are
a little nervous about corporate earnings and the economy. On the positive
side, the United States has been a winner with regard to the Asian
situation: The cost for many goods has gone down, and long-term interest
rates have declined significantly. We see the possibility of federal and/or
state tax cuts, which could stimulate consumer spending. Overall, we will
continue to search for quality, low-risk stocks. We will try to be cautious

while participating in any market moves upward.

* The Fund's portfolio composition is subject to change.
(1) With the maximum sales load of 5.00%, the 30-day SEC yield would have been
2.18%.

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<TABLE>
<CAPTION>
Lipper Equity Russell 1000 Value Income Equity
Income Average Index Fund*
<S> <C> <C> <C>
Nov-85 103.86 100.00 94.88
Jun-86 120.92 122.44 119.11
Jun-87 140.12 150.22 136.86
Jun-88 140.53 148.57 132.08
Jun-89 164.91 178.27 147.78
Jun-90 176.63 190.22 163.48
Jun-91 188.65 200.38 163.48
Jun-92 218.15 232.33 184.98
Jun-93 254.32 283.32 229.35
Jun-94 261.73 287.92 247.10
Jun-95 305.96 346.72 268.94
Jun-96 369.60 432.12 336.52
Jun-97 469.93 575.51 428.57
Jun-98 741.49 569.79 506.36
</TABLE>

The Fund's performance is compared to the Russell 1000 Value Index, which
contains Russell 1000 securities with a less-than-average growth orientation.
Securities in this index generally have lower price-to-book and price/earnings
ratios, higher dividend yields and lower forecasted growth values than the
Growth Universe. 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 performance of the 1st Source Income Equity Fund reflects
the deduction of fees for these value-added services. PAST PERFORMANCE IS NOT
PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE PER
SHARE WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.

THE LIPPER EQUITY INCOME AVERAGE CONSISTS OF 30 EQUITY INCOME FUNDS.

(1)The quoted performance of the 1st Source Monogram Income Equity Fund includes
performance of certain collective trust fund ("Commingled") accounts advised by
1st Source Bank, for periods dating back to 11/30/85, and prior to the mutual
fund's commencement of operations on 9/25/96, as adjusted to reflect the
expenses associated with the mutual fund. The Commingled accounts were not
registered with the Securities & 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 total return set forth above may reflect the waiver or reimbursement of a
portion of the Income Equity Fund's expenses for certain periods since the
inception date. In such instances, and without waiver of fees, total return
would have been lower.

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1st Source Monogram Funds
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DIVERSIFIED EQUITY FUND

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 LP (growth).

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. For the 12-month period ended June 30, 1998, the Fund's total return was
27.85% (without sales load). In comparison, the Standard & Poor's 500 Index
was up 28.10% during the same period.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. Anthony Rizza, Columbus Circle Investors:
Lots of things went right for us. A year ago, we took steps to refocus our
equity analysis and improve our stock-selection process. And it worked very
well for us during the last 12 months; we chose some high-performing stocks.
America Online (1.97% of the Fund's portfolio*), one of our larger
positions, gained roughly 200% during the period. The company is positioned
as the number one provider of Internet access, and it is the dominant
company in a rapidly growing industry. We also got a good return from
Microsoft (1.10% of the Fund's portfolio*), which holds the dominant
position in PC software and is moving rapidly into other areas. Quite
simply, we have had great success to date in finding the right stocks in the
right sectors.

A. Robert Marcin, Miller Anderson & Sherrerd:
We continue to hold a low price-to-earnings
(P/E) approach to investments. But low P/E
investing did very poorly during the last 12 months; consequently, our
portion of the Fund's portfolio performance suffered. Nonetheless, the
stocks we hold have not suffered from any significant fundamental problems,
such as sales problems or earnings declines. In fact, we expect our revised
earnings estimates for 1999 to be better than our present P/E (price-to-
earnings ratio). We expect that at some point in the current market cycle,
we could see the market again favor low P/E (price-to-earnings) stocks like
the ones we hold.

A. Bob Takazawa, Loomis Sayles:
During the last 12 months, earnings growth rates for the S&P 500 have fallen
from 15% to the 5% to 8% range. At the same time, mid-cap growth
stocks--those with market capitalizations between $1 billion and $8
billion--maintained their growth rates. We anticipated this divergence and
rotated a significant portion of our money into the mid-cap sector. This
strategy served us well for most of the period, though when the Asian crisis
struck at the end of 1997, mid-caps as a group were sold off pretty
dramatically for a couple of months. Since then, however, the situation in
Asia has been put in perspective, and investors have begun to understand
that with their high valuations, large-cap stocks have proven to be
less-than-safe havens--and our mid-cap holdings have done quite well.

Q. HOW DID YOU APPLY YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. Anthony Rizza, Columbus Circle Investors:
As always, we looked for companies with dominant market positions, companies
whose fundamental results exceeded investor expectations, with the potential
for raising those expectations even further. When that premise works, it has
potential to carry the stock price higher. We also helped ourselves by
reducing our exposure to companies we felt could suffer from the problems in
Asia.

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1st Source Monogram Funds
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A. Robert Marcin, Miller Anderson & Sherrerd:
We continued to see a lot of value in the industrial companies, where we
found solid earnings growth, reasonable fundamentals and phenomenally cheap
valuations--50% or 60% discounts to certain stocks' true values. As of June
30, 1998, our portfolio had an average P/E ratio of 12.8, versus a P/E ratio
of 25 for the market as a whole.

A. Bob Takazawa, Loomis Sayles:
Our mid-cap orientation led us to be marginally overweighted in technology,
consumer cyclicals and health care. In technology, for the most part, we
attempted to avoid the hardware and semiconductor areas and stayed highly
focused on services, software, the Internet and telecommunications
equipment. The "Asian influence" led us to invest in these areas and to
avoid sectors that depend on foreign customers for revenue growth. We liked
the consumer cyclical stocks because of our belief that the country may be
moving from an investment-led economy back to a consumption-led economy.

Q. WHAT ARE SOME INTERESTING STOCKS IN YOUR PORTFOLIO?
A. Anthony Rizza, Columbus Circle Investors:
Recently, we bought shares in Ascend Communications (1.34% of the Fund's
portfolio*). The company provides the telecommunications equipment for wide
area access services on the Internet and has been benefiting from the rapid
growth in Web traffic. We also feel strongly about Chancellor Media (0.40%),
which is actively involved in consolidating the radio industry. Chancellor
buys underperforming stations, then changes management and boosts ratings,
which helps increase advertisement revenue.

A. Robert Marcin, Miller Anderson & Sherrerd:
We are very big on Case (0.74%), which is the world's second-largest
agricultural equipment company and also a leading construction equipment
company. It is one of the cheapest large-cap stocks around. It has a low
price-to-earnings ratio, less than 9 times this year's earnings. We also
like Parker Hannifin (0.21%), a broadly diversified industrial products
company. Parker Hannifin is benefiting from the trend of large manufacturing
concerns to consolidate the size of their supplier base and has been awarded
more business.

A. Bob Takazawa, Loomis Sayles:
We were fortunate to own a large position in CIENA, Corp. (1.29%), which is
in the process of being taken over by Tellabs (0.94%), which we also own.
CIENA, Corp. has developed the technology for enabling fiber optic cable to
carry many more streams of light and, therefore, a great deal more data.
This acquisition makes Tellabs a much more formidable competitor to Lucent
Technologies (1.55%). Among our other holdings, we like HBO & Co. (2.83%),
which sells information services to hospitals and other health-care
providers. In recent months, HBO has gained the attention of the investment
community as a company that may provide solid earnings growth stability.

Q. WHAT IS YOUR OUTLOOK?
A. Anthony Rizza, Columbus Circle Investors:
We are concerned about what a slowing earnings environment could mean for
the market. We will closely monitor the situation in Asia and the effect it
could have on the U.S. economy. And we will stick with what has worked for
us in the last year: staying away from the industrial sector and focusing on
consumer-oriented companies. As always, we believe that solid stock
selection will serve us well.

A. Robert Marcin, Miller Anderson & Sherrerd:
We are not bullish on the market as a whole. In our view, overall stocks
have never been more expensive, and there has been a fundamental
deterioration in the outlook for corporate profits. Also, investor
sentiment, which is a measure of investor psychology, has turned very
bullish--which we see as a "bearish indicator." We would not be surprised by
a modest to severe correction

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1st Source Monogram Funds
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in the fall--a drop of perhaps 20% to 25%--sparked by the realization that
stocks have risen to extreme and unsupportable levels. At the same time, we
are excited about the possibilities presented by the stocks we hold. We are
going to stick to our guns and keep buying inexpensive stocks, and when
market psychology turns, we expect to be amply rewarded.

A. Bob Takazawa, Loomis Sayles:
We believe the impact of Asia has not been felt completely, and that the
drag on corporate earnings will continue. We expect to see more earnings
disappointments, particularly among the large, multinational companies that
have a significant presence in the Far East. With this in mind, we will
continue to focus on companies that we believe benefit from a higher
percentage of domestic sales. We view the coming months as an opportunity to
benefit from investing in solid, mid-cap companies with strong earnings
stories.

* The Fund's portfolio composition is subject to change.
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<TABLE>
<CAPTION>
Investor S&P 500
<S> <C> <C>
Jun-85 94.94 100.00
Jun-86 115.51 135.83
Jun-87 123.10 169.91
Jun-88 109.49 158.19
Jun-89 127.85 190.65
Jun-90 154.11 221.91
Jun-91 159.49 238.31
Jun-92 179.43 270.40
Jun-93 208.86 307.14
Jun-94 207.91 311.25
Jun-95 256.01 392.28
Jun-96 311.39 494.45
Jun-97 381.07 665.81
Jun-98 487.18 852.90
</TABLE>

The Fund's performance is compared to the Standard & Poor's 500 Index, which
reflects the performance 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 performance of
the 1st Source Monogram Diversified Equity Fund reflects the deduction of fees
for these value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE
RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE PER SHARE WILL FLUCTUATE, SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE
ORIGINAL COST.

(1)The quoted performance of the 1st Source Monogram Diversified Equity Fund
includes performance of certain collective trust fund ("Commingled") accounts
advised by 1st Source Bank, for periods dating back to 6/30/85, and prior to the
mutual fund's commencement of operations on 9/23/96, as adjusted to reflect the
expenses associated with the mutual fund. The Commingled accounts were not
registered with the Securities & 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 total return set forth above may reflect the waiver or reimbursement of a
portion of the Diversified Equity Fund's expenses for certain periods since the
inception date. In such instances, and without waiver of fees, total return
would have been lower.

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SPECIAL EQUITY FUND(+)
BRIAN BYTHROW

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. For the 12 months ended June 30, 1998, the Fund's total return was 1.86%
(without sales load). In comparison, the Russell 2000 was up 16.51%, while
the Standard & Poor's 500 Index rose 28.10%.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. A big part of the Fund's underperformance was due to the fact that returns
generated by the small-cap growth sector were far below those produced by
large-cap stocks (as represented by the S&P 500). Over the last year,
investors turned their attention to the larger end of the market, which put
a great deal of pressure on many of the issues we owned. Further compounding
our difficulty was the fact that the Fund pursued a micro-cap strategy,
owning very small stocks that we believed had potential but that simply did
not perform. In addition, the problems in Asia took the steam out of a
number of our holdings, especially in the semiconductor sector.

Q. IN RECENT MONTHS, WHAT STEPS HAVE YOU TAKEN TO RECONSTRUCT THE PORTFOLIO?
A. First, we purged a number of holdings that we no longer expected to perform
well, and in fact, many of these stocks have since fallen even further.
Second, we reduced the number of holdings from more than 70 stocks to around
50; we would rather own a smaller number of stocks that we know very well.
Third, we moved up the market-cap scale. We eliminated the micro-cap names
and began buying stocks with market capitalizations more in the neighborhood
of $1 billion to $2 billion. We would rather go with "larger small
companies" that we believe have proven products and the likelihood of
meeting or exceeding their earnings expectations. And fourth, we decided
that when we do buy smaller stocks, we are going to concentrate on companies
with reasonable valuations and good earnings prospects. Overall, we have
committed ourselves to following a "GARP" strategy: Growth At a Reasonable
Price. The stocks we buy, especially the smaller ones, must look relatively
"cheap" to us, with enough upside potential to compensate for the risks they
present.

Q. WHAT ARE SOME INTERESTING STOCKS IN YOUR PORTFOLIO?
A. One holding that fits our GARP strategy is Brightpoint, Inc. (1.93% of the
Fund's portfolio*), the world's largest distributor of cellular handsets.
This is one of our few stocks with Asian exposure, a factor that is already
discounted in the stock price. Brightpoint's earnings are growing at a
projected annual rate of 35%, while the stock is trading at an estimated
price-to-earnings ratio of 20 times, which is just over half the growth
rate. The company is emerging from the low-margin, distribution business to
a high-margin, value-added model. Brightpoint has a driven management team,
and the company has always hit its earnings numbers.

Another stock we like is Ames Department Stores (1.82%), an East Coast
discount merchandiser. Ames emerged from bankruptcy several years ago and
has turned things around. The chain targets lower- to moderate-income
customers. We believe the company has good earnings growth potential and no
risk from Asia. Actually, it is our view that if any segment of the economy
is going to benefit from the problems in Asia, it is going to be retailers
like Ames, who are paying less for the goods they import from Asian markets.

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Q. WHAT IS YOUR OUTLOOK FOR THE REST OF 1998?
A. We tend to be cautious looking forward, because we think that over the next
six months, the markets are going to be choppy, at best. It appears to us
that it's going to be a stock picker's market, and we feel that with the
big-cap names so expensive, investors are going to begin to migrate down to
mid-cap issues with strong earnings growth and little or no exposure to
Asia. As of June 30, 1998, about 25% of the Fund was in cash. In this kind
of market, we want to hold some cash and be prepared to swoop in and buy

some good stocks at cheap prices when they become oversold.

* The Fund's portfolio composition is subject to change.

(+) Small capitilization funds typically carry additional risks since smaller
companies generally have a higher risk of failure. Historically, smaller
companies' stocks have experienced a greater degree of market volatility
than average.
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<TABLE>
<CAPTION>
Investor Russell 2000
<S> <C> <C>
Nov-85 9506 10000
Jun-86 11241 12496
Jun-87 12564 13619
Jun-88 12798 12775
Jun-89 14665 14402
Jun-90 18100 14841
Jun-91 16814 15023
Jun-92 19301 17207
Jun-93 25859 21674
Jun-94 25396 22629
Jun-95 30588 27170
Jun-96 44265 33660
Jun-97 42816 39156
Jun-98 41492 45182
</TABLE>

The Fund's performance is compared to the Russell 2000 Index, which represents
the performance of domestically traded common stocks of small to mid-sized
companies. This 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 performance of the 1st Source Monogram Special Equity Fund reflects
the deduction of fees for these value-added services. PAST PERFORMANCE IS NOT
PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE PER
SHARE WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.

(1)The quoted performance of the 1st Source Monogram Special Equity Fund
includes performance of certain collective trust fund ("Commingled") accounts
advised by 1st Source Bank, for periods dating back to 11/30/85, and prior to
the mutual fund's commencement of operations on 9/20/96, as adjusted to reflect
the expenses associated with the mutual fund. The Commingled accounts were not
registered with the Securities & 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 total return set forth above may reflect the waiver or reimbursement of a
portion of the Special Equity Fund's expenses for certain periods since the
inception date. In such instances, and without waiver of fees, total return
would have been lower.

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INCOME FUND
PASCAL "PAT" ROMANO, CFA

Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. For the 12 months ended June 30, 1998, the Fund's total return was 8.24%
(without sales load). In comparison, the Lehman Brothers Intermediate
Government/Corporate Bond Index was up 8.54%. Considering the fact that
inflation was extremely benign throughout the period, fixed-income investors
enjoyed "real returns" (total return minus the rate of inflation) that were
generous by historical measures.

Q. WHAT FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. As always, the most dominant factor driving bond prices was the direction of
interest rates. And, during most of the last 12 months, long-term rates fell
rather steadily, with bond prices rising. There were a number of reasons for
this movement. First, continued persistence of low inflation, drove rates
lower. It is one thing to see low inflation for a few months, but when you
have inflation under 2%, quarter after quarter, the bond market just takes
out any risk premium, and rates fall. At the same time, the Federal Reserve
declined to drop short-term rates, which kept the fed funds rate (the rate
banks charge one another for overnight loans) steady at an artificially high
5.5%. In addition, we saw a "flight to quality" from foreign buyers who were
understandably nervous about overseas markets, and this tremendous demand
for super-safe U.S. Treasury bonds drove the Treasury market higher
throughout much of the year.

At the same time, corporate bonds suffered due to a lack of pricing power.
With corporate profits slowing, and much of the buying restricted to the
Treasury market, the spreads (the difference between yields of bonds with
similar maturities) between corporate bonds and Treasury paper widened
appreciably. Agency bonds--such as those issued by Freddie Mac and Fannie
Mae--also underperformed Treasuries. So while bonds in general posted strong
returns for the 12-month period, most of that advance came in the Treasury
market.

Q. HOW DID YOU APPLY YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. We kept a somewhat bullish posture during the last six months of 1997, which
helped boost the Fund's performance when interest rates declined toward the
end of the calendar year. At the beginning of 1998, we believed that rates
would begin to rise again, and we moved a portion of the portfolio into cash
and cash-like securities. This decision cost the Fund the opportunity to
realize some capital gains, as rates continued to fall and bond prices rose.
At the end of March, we resumed a bullish stance, moved the Fund's average
weighted maturity out beyond our benchmark's average, and benefited when
bonds continued their upward momentum. As of June 30, 1998, the Fund's
average weighted maturity was 4.42 years, with an average credit quality of
AA+.

Q. WHAT IS YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. The U.S. economy is still the big engine driving the bond market. The
problems in Asia appear to us to be more of a distraction to the real issue,
which is the continued strength of the domestic economy. Although Wall
Street analysts have lowered corporate profit forecasts, corporations
themselves are still saying that profit growth will continue to be just
fine. Our view is that corporate profitability will slow significantly, but
we do not expect that to be a major obstacle to either the stock market or
the bond market. We do not believe that interest rates will go much lower.
On the foreign front, even if the situation in Asia worsens, as it might, we
don't think bonds will react dramatically. In fact, we expect that a measure
of stability will come back into the bond market, and we could see a
reduction in the volatility of the last 12 months.

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

-13-
<PAGE> 14
1st Source Monogram Funds
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Lehman
Brothers|Intermediate|Gov't/Corporate|Bond
Index Investor
<S> <C> <C>
Jun-85 10000 9503
Jun-86 11620 10929
Jun-87 12268 11382
Jun-88 13220 11966
Jun-89 14572 13087
Jun-90 15711 13909
Jun-91 17366 15054
Jun-92 19651 17106
Jun-93 21703 18855
Jun-94 21643 18747
Jun-95 23886 20626
Jun-96 25079 21361
Jun-97 26891 22831
Jun-98 27480 24983
</TABLE>

The Fund's performance is measured against the Lehman Brothers Intermediate
Government/Corporate Bond Index, an unmanaged index considered to be
representative of the performance of government and corporate bonds with
maturities of less than 10 years. The index does not reflect the deduction of
fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the 1st Source Monogram Income Fund reflects
the deduction of fees for these value-added services. PAST PERFORMANCE IS NOT
PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE PER
SHARE WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THE ORIGINAL COST.

(1)The quoted performance of the 1st Source Monogram Income Fund includes
performance of certain collective trust fund ("Commingled") accounts advised by
1st Source Bank, for periods dating back to 6/30/85, and prior to the mutual
fund's commencement of operations on 9/24/96, as adjusted to reflect the
expenses associated with the mutual fund. The Commingled accounts were not
registered with the Securities & 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 total return set forth above may reflect the waiver or reimbursement of a
portion of the Income Fund's expenses for certain periods since the inception
date. In such instances, and without waiver of fees, total return would have
been lower.

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

-14-
<PAGE> 15

TABLE OF CONTENTS

Statements of Assets and Liabilities
PAGE 16

Statements of Operations
PAGE 17

Statements of Changes in Net Assets
PAGE 18

Schedules of Portfolio Investments
PAGE 20

Notes to Financial Statements
PAGE 30

Financial Highlights
PAGE 36

Report of Independent Accountants
PAGE 38

-15-
<PAGE> 16

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998

<TABLE>
<CAPTION>
INCOME DIVERSIFIED SPECIAL
EQUITY EQUITY EQUITY INCOME
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $41,186,758;
$70,173,808; $23,922,940; and $64,156,886,
respectively)................................. $48,863,679 $92,594,031 $27,799,569 $64,508,688
Repurchase agreements (cost $3,756,944;
$5,885,988; $9,732,398; and $614,991,
respectively)................................. 3,756,944 5,885,988 9,732,398 614,991
----------- ----------- ----------- -----------
Total Investments......................... 52,620,623 98,480,019 37,531,967 65,123,679
Interest and dividends receivable............... 132,685 54,691 2,673 896,371
Receivable from brokers for investments sold.... -- 428,992 -- --
Unamortized organization costs.................. 8,536 13,676 8,010 11,923
Prepaid expenses and other assets............... -- 38 9 21
----------- ----------- ----------- -----------
Total Assets.............................. 52,761,844 98,977,416 37,542,659 66,031,994
----------- ----------- ----------- -----------
LIABILITIES:
Payable for investments purchased............... 255,000 762,729 2,056,003 --
Accrued expenses and other payables:
Investment advisory fees.................... 34,055 87,313 22,704 29,857
Administration fees......................... 1,427 2,682 960 1,802
Custodian fees.............................. 1,536 2,988 1,968 835
Accounting fees............................. 299 402 213 270
Trustees' fees and expenses................. 450 514 163 443
Legal fees.................................. 6,467 11,693 8,342 1,720
Audit fees.................................. 3,715 3,714 3,721 3,709
Printing fees............................... 1,041 8,152 3,141 5,405
Transfer agent fees......................... 124 2,319 1,368 6,754
Registration and filing fees................ 6,651 10,234 2,170 5,131
Other....................................... 687 1,458 784 982
----------- ----------- ----------- -----------
Total Liabilities......................... 311,452 894,198 2,101,537 56,908
----------- ----------- ----------- -----------
NET ASSETS:
Capital......................................... 40,256,128 66,101,148 33,866,811 65,065,177
Undistributed (distributions in excess of) net
investment income............................. 56,183 (641) 1,270 48,480
Net unrealized appreciation (depreciation) on
investments................................... 7,676,921 22,420,223 3,876,629 351,802
Accumulated undistributed net realized gains
(losses) on investment transactions........... 4,461,160 9,562,488 (2,303,588) 509,627
----------- ----------- ----------- -----------
Net Assets.................................. $52,450,392 $98,083,218 $35,441,122 $65,975,086
=========== =========== =========== ===========
Outstanding units of beneficial interest
(shares)...................................... 4,164,289 7,369,531 3,680,887 6,378,210
=========== =========== =========== ===========
Net asset value -- redemption price per share... $ 12.60 $ 13.31 $ 9.63 $ 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............................... $ 13.26 $ 14.01 $ 10.14 $ 10.77
=========== =========== =========== ===========
</TABLE>

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

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF OPERATIONS
FOR YEAR ENDED JUNE 30, 1998

<TABLE>
<CAPTION>
INCOME DIVERSIFIED SPECIAL
EQUITY EQUITY EQUITY INCOME
FUND FUND FUND FUND
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................... $ 428,967 $ 357,831 $ 322,881 $3,958,259
Dividend income.......................... 1,147,471 790,275 122,383 186,767
---------- ----------- ---------- ----------
Total Income........................... 1,576,438 1,148,106 445,264 4,145,026
---------- ----------- ---------- ----------
EXPENSES:
Investment advisory fees................. 374,402 970,429 272,600 334,179
Administration fees...................... 93,601 176,443 68,151 121,521
12b-1 fees............................... 117,001 220,552 85,188 151,899
Custodian fees........................... 6,186 24,513 6,696 7,083
Accounting fees.......................... 20,243 35,425 14,267 24,106
Trustees' fees and expenses.............. 289 3,344 1,321 950
Legal fees............................... 10,505 17,820 10,974 6,902
Audit fees............................... 13,104 10,403 11,863 11,777
Printing fees............................ 8,085 15,448 8,025 12,444
Organization costs....................... 2,359 3,086 1,095 2,356
Transfer agent fees...................... 29,653 36,199 33,006 33,185
Registration and filing fees............. 6,241 9,175 1,119 2,082
Other.................................... 652 7,507 3,199 5,403
---------- ----------- ---------- ----------
Total Expenses........................... 682,321 1,530,344 517,504 713,887
Less: expenses voluntarily
reduced........................... (117,001) (220,552) (85,188) (151,899)
---------- ----------- ---------- ----------
Net Expenses............................. 565,320 1,309,792 432,316 561,988
---------- ----------- ---------- ----------
Net Investment Income (Loss)............. 1,011,118 (161,686) 12,948 3,583,038
---------- ----------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) ON
INVESTMENTS:
Net realized gains (losses) on investment
transactions........................... 6,789,017 13,166,299 (796,672) 725,350
Change in unrealized appreciation
(depreciation) on investments.......... (415,826) 8,399,708 1,351,263 461,944
---------- ----------- ---------- ----------
Net realized/unrealized gains (losses) on
investments............................ 6,373,191 21,566,007 554,591 1,187,294
---------- ----------- ---------- ----------
Change in net assets resulting from
operations............................. $7,384,309 $21,404,321 $ 567,539 $4,770,332
========== =========== ========== ==========
</TABLE>

See notes to financial statements.
-17-
<PAGE> 18

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
INCOME EQUITY FUND DIVERSIFIED EQUITY FUND
--------------------------- ---------------------------
FOR YEAR FOR PERIOD FOR YEAR FOR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997(a) 1998 1997(a)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)....... $ 1,011,118 $ 616,421 $ (161,686) $ (54,090)
Net realized gains (losses) on
investment transactions......... 6,789,017 2,858,798 13,166,299 7,722,828
Net change in unrealized
appreciation(depreciation) on
investments..................... (415,826) 4,364,604 8,399,708 5,132,388
------------ ------------ ------------ ------------
Change in net assets resulting from
operations......................... 7,384,309 7,839,823 21,404,321 12,801,126
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income......... (985,708) (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)
------------ ------------ ------------ ------------
Change in net assets from shareholder
distributions...................... (6,012,382) (749,305) (9,785,732) (1,332,828)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........ 16,097,747 42,293,659 20,560,375 84,469,233
Dividends reinvested............... 5,820,966 746,329 9,643,385 1,332,616
Cost of shares redeemed............ (10,035,797) (10,934,957) (18,728,640) (22,280,638)
------------ ------------ ------------ ------------
Change in net assets from capital
transactions....................... 11,882,916 32,105,031 11,475,120 63,521,211
------------ ------------ ------------ ------------
Change in net assets................. 13,254,843 39,195,549 23,093,709 74,989,509
NET ASSETS:
Beginning of period................ 39,195,549 -- 74,989,509 --
------------ ------------ ------------ ------------
End of period...................... $ 52,450,392 $ 39,195,549 $ 98,083,218 $ 74,989,509
============ ============ ============ ============
SHARE TRANSACTIONS:
Issued............................. 1,270,185 4,149,432 1,643,723 8,361,129
Reinvested......................... 497,282 68,376 873,495 125,956
Redeemed........................... (794,106) (1,026,880) (1,502,834) (2,131,938)
------------ ------------ ------------ ------------
Change in shares..................... 973,361 3,190,928 1,014,384 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.
-18-
<PAGE> 19

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SPECIAL EQUITY FUND INCOME FUND
--------------------------- ---------------------------
FOR YEAR FOR PERIOD FOR YEAR FOR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997(a) 1998 1997(a)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income (loss)....... $ 12,948 $ 10,227 $ 3,583,038 $ 2,182,134
Net realized gains (losses) on
investment transactions......... (796,672) (253,355) 725,350 (215,572)
Net change in unrealized
appreciation(depreciation) on
investments..................... 1,351,263 304,921 461,944 790,234
------------ ------------ ------------ ------------
Change in net assets resulting from
operations......................... 567,539 61,793 4,770,332 2,756,796
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income......... (15,078) (10,227) (3,582,178) (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...................... (467,624) (811,579) (3,582,178) (2,141,355)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued........ 15,510,945 38,050,281 17,944,091 66,488,773
Dividends reinvested............... 450,173 811,083 3,466,908 2,132,592
Cost of shares redeemed............ (11,144,152) (7,587,337) (11,412,595) (14,448,278)
------------ ------------ ------------ ------------
Change in net assets from capital
transactions....................... 4,816,966 31,274,027 9,998,404 54,173,087
------------ ------------ ------------ ------------
Change in net assets................. 4,916,881 30,524,241 11,186,558 54,788,528
NET ASSETS:
Beginning of period................ 30,524,241 -- 54,788,528 --
------------ ------------ ------------ ------------
End of period...................... $ 35,441,122 $ 30,524,241 $ 65,975,086 $ 54,788,528
============ ============ ============ ============
SHARE TRANSACTIONS:
Issued............................. 1,539,687 3,865,762 1,739,371 6,626,551
Reinvested......................... 47,382 83,724 337,542 210,754
Redeemed........................... (1,087,999) (767,669) (1,106,996) (1,429,012)
------------ ------------ ------------ ------------
Change in shares..................... 499,070 3,181,817 969,917 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.
-19-
<PAGE> 20

THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS (82.0%):
Automotive Parts (2.1%):
36,000 Excel Industries, Inc. ....... $ 515,250
45,000 Simpson Industries, Inc. ..... 615,937
-----------
1,131,187
-----------
Banking (3.2%):
18,000 Magna Group, Inc. ............ 1,017,000
9,000 National City Corp. .......... 639,000
-----------
1,656,000
-----------
Building Materials (1.5%):
30,000 Dal-Tile International Inc.
(b)......................... 294,375
15,000 Modine Manufacturing Co. ..... 519,375
-----------
813,750
-----------
Chemicals (3.3%):
9,000 Betz Labs, Inc. .............. 379,687
7,000 Dow Chemical Co. ............. 676,812
21,500 Lubrizol Corp. ............... 650,375
-----------
1,706,874
-----------
Communications Equipment (1.0%):
12,000 Harris Corp. ................. 536,250
-----------
Computer Services (1.7%):
22,000 Electronic Data Systems
Corp. ...................... 880,000
-----------
Computers (2.1%):
11,500 Hewlett Packard Co. .......... 688,562
10,000 Sun Microsystems, Inc. (b).... 434,375
-----------
1,122,937
-----------
Electronic Components (4.8%):
11,400 Avnet, Inc. .................. 623,437
22,600 Dallas Semiconductor Corp. ... 700,600
19,000 Parker-Hannifin Corp. ........ 724,375
10,000 Rockwell International,
Inc. ....................... 480,625
-----------
2,529,037
-----------
Environmental Services (1.4%):
21,100 Browning-Ferris Industries,
Inc. 733,225
-----------
Financial Services (2.5%):
40,000 Alliance Capital
Management-LP............... 1,012,500
3,931 Associates First Capital
Corp. ...................... 302,196
-----------
1,314,696
-----------
Food & Related (1.1%):
10,600 Quaker Oats Co. .............. 582,337
-----------
Forest & Paper Products (2.6%):
10,000 Georgia Pacific Corp. ........ 589,375
17,000 Weyerhaeuser Co. ............. 785,188
-----------
1,374,563
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Furniture & Furnishings (0.6%):
20,000 Shelby Williams Industries.... $ 300,000
-----------
Insurance (7.5%):
15,000 Conseco Inc. ................. 701,250
22,000 La Salle RE Holdings.......... 833,250
9,000 Lincoln National Corp. ....... 822,375
24,000 Penncorp Financial Group,
Inc. ....................... 492,000
12,412 Saint Paul Companies, Inc. ... 522,088
25,000 TIG Holdings Inc. ............ 575,000
-----------
3,945,963
-----------
Investment Companies (1.5%):
32,100 Waddell And Reed Financial.... 768,394
-----------
Machine-Diversified (1.7%):
9,900 Esterline Technologies, Corp.
(b)......................... 203,569
12,500 Sundstrand Corp. ............. 715,625
-----------
919,194
-----------
Machinery & Equipment (0.9%):
22,000 AGCO Corp. ................... 452,375
-----------
Mining (0.5%):
15,000 De Beers Centenary............ 262,500
-----------
Motor Vehicles (1.7%):
15,000 Ford Motor Co. ............... 885,000
-----------
Oil Integrated Companies (6.5%):
12,000 Atlantic Richfield Co. ....... 937,500
7,000 Mobil Corp. .................. 536,375
47,500 Petroleum Heat & Power........ 95,000
15,000 Phillips Petroleum Co. ....... 722,812
20,800 Star Gas Partners L.P. ....... 457,600
19,000 USX -- Marathon Group
Corp. ...................... 651,937
-----------
3,401,224
-----------
Pharmaceuticals (5.3%):
26,000 Abbott Laboratories........... 1,062,750
8,000 Bristol-Myers Squibb Co. ..... 919,500
6,000 Merck & Co., Inc. ............ 802,500
-----------
2,784,750
-----------
Publishing (5.1%):
17,000 American Greetings Corp. ..... 865,938
31,100 Readers Digest Association.... 843,588
14,000 Tribune Co. .................. 963,375
-----------
2,672,901
-----------
</TABLE>

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

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Real Estate Investment Trust (6.1%):
42,000 Burnham Pacific Properties,
Inc. ....................... $ 595,875
40,000 CAPTEC Net Lease Realty,
Inc. ....................... 610,000
14,875 Equity Residential Property... 705,633
12,000 Hospitality Properties
Trust....................... 385,500
21,000 Prentiss Properties Trust..... 510,563
34,000 Thornburg Mortgage Asset
Corp. ...................... 414,375
-----------
3,221,946
-----------
Retail (4.4%):
25,000 Brown Group, Inc. ............ 496,875
17,000 Claires Stores, Inc. ......... 348,500
21,000 Dillards Inc., Class A........ 870,188
20,000 Long's Drug Stores, Inc. ..... 577,500
-----------
2,293,063
-----------
Steel (2.7%):
25,000 Allegheny Teledyne, Inc. ..... 571,875
16,800 Carpenter Technology Corp. ... 844,200
-----------
1,416,075
-----------
Telecommunications (1.0%):
16,000 Frontier Corp. ............... 504,000
-----------
Tires & Rubber Products (1.3%):
33,000 Cooper Tire & Rubber Co. ..... 680,625
-----------
Tobacco (0.5%):
10,000 RJR Nabisco Holdings Corp. ... 237,500
-----------
Transportation-Air (3.1%):
10,000 AMR Corp. Del (b)............. 832,500
6,000 Delta Air Lines, Inc. ........ 775,500
-----------
1,608,000
-----------
Transportation-Misc. (0.8%):
14,000 Ryder System Inc. ............ 441,875
-----------
Utilities-Electric (3.5%):
13,000 American Electric Power,
Co. ........................ 589,875
16,000 Houston Industries, Inc. ..... 494,000
22,000 Montana Power Co. ............ 764,500
-----------
1,848,375
-----------
Total Common Stocks........... 43,024,616
-----------
PREFERRED STOCKS (3.4%):
Computers (1.1%):
10,000 Budget Group Capital Trust,
Series 144A, 6.25%,
6/15/05..................... 578,750
-----------
Hotels & Motels (0.6%):
22,000 Signature Inns, Inc. ......... 332,750
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
Metals Diversified (0.9%):
10,000 Cypress Amax Minerals Co.,
8.11%, 12/31/49, Callable
12/18/98 @ 51.60............ $ 451,250
-----------
Telecommunications (0.8%):
17,000 Cellnet Funding LLC, 7.00%,
6/1/10, Callable 6/1/01 @
26.19....................... 395,250
-----------
Total Preferred Stocks........ 1,758,000
-----------
CONVERTIBLE BONDS (7.8%):
Computer Software (0.9%):
500,000 Learning Co., Series 144A,
5.50%, 11/1/00, Callable
11/2/98 @ 102.20............ 478,125
-----------
Computers (1.1%):
600,000 Data General Corp., 6.00%,
5/15/04, Callable 5/18/00 @
103.43...................... 552,000
-----------
Health & Personal Care (1.0%):
500,000 Sunrise Assisted Living,
5.50%, 06/15/02, Callable
6/15/00 @ 102.20............ 537,500
-----------
Industrial Goods & Services (3.1%):
550,000 Integrated Device Technology
5.50%, 6/1/02, Callable
6/1/99 @ 101.38............. 453,750
150,000 IVAX Corp. 6.50%, 11/15/01,
Callable 11/15/98 @
100.00...................... 131,438
450,000 Mascotech 4.50%, 12/15/03,
Callable 12/15/98 @
102.00...................... 419,062
285,000 Oryx Energy Co. 7.50%,
5/15/14, Callable 5/15/99 @
100.00...................... 281,438
400,000 Park Electrochem 5.50%,
3/1/06, Callable 3/1/99 @
102.75...................... 342,500
-----------
1,628,188
-----------
Medical -- Wholesale Drug Distribution
(0.8%):
400,000 Fuisz Technologies Ltd.,
Series 144A, 7.00%,
10/15/04, Callable 10/19/00
@ 104.00.................... 401,500
-----------
Oil & Gas Services (0.9%):
600,000 Halter Marine, 4.50%,
09/15/04, Callable 9/15/00 @
102.57...................... 483,750
-----------
Total Convertible Bonds....... 4,081,063
-----------
</TABLE>

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

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
REPURCHASE AGREEMENTS (7.2%):
$3,756,944 Fifth Third Bank Repurchase
Agreement, 6/30/98, 5.15%,
matures 7/1/98,
(Collateralized by
$3,811,000 Federal National
Mortgage Association Pool #
323020, 6.50%, 2/1/13,
market value = $3,832,436).. $ 3,756,944
-----------
Total Repurchase Agreements... 3,756,944
-----------
Total (Cost $44,943,702)
(a)......................... $52,620,623
===========
</TABLE>

- ---------

Percentages indicated are based on net assets of $52,450,392.

(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......................... $9,938,353
Unrealized depreciation......................... (2,261,432)
----------
Net unrealized appreciation..................... $7,676,921
==========
</TABLE>

(b) Represents non-income producing securities.

See notes to financial statements.

-22-
<PAGE> 23

THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS (94.4%):
Aerospace/Defense -- Equipment (0.0%):
2 Raytheon Co.-Class A.......... $ 115
-----------
Apparel (0.7%):
5,300 Russell Corp.................. 159,994
10,600 VF Corp....................... 545,900
-----------
705,894
-----------
Automotive Parts (0.8%):
5,500 Dana Corp..................... 294,250
1,900 Eaton Corp.................... 147,725
5,800 TRW, Inc...................... 316,825
-----------
758,800
-----------
Banking (2.3%):
5,300 Banc One...................... 295,806
10,400 Chase Manhattan Corp.......... 785,200
1,300 Crestar Financial Corp........ 70,931
10,410 First Union Corp.............. 606,382
2,900 NationsBank Corp.............. 221,850
4,400 Republic New York Corp........ 276,925
-----------
2,257,094
-----------
Beverages (1.0%):
13,000 Pepsico Inc................... 535,437
10,100 Seagram Co. Ltd............... 413,468
-----------
948,905
-----------
Building Materials (0.8%):
7,100 Fastenal Co................... 329,706
10,200 Owens Corning................. 416,287
-----------
745,993
-----------
Chemicals (3.5%):
4,200 Air Products & Chemicals...... 168,000
2,700 Dow Chemical Co............... 261,056
5,600 E. I. du Pont de Nemours &
Co.......................... 417,900
2,900 FMC Corp. (b)................. 197,744
7,200 Great Lakes Chemical Corp..... 283,950
7,200 IMC Global, Inc............... 216,900
4,900 Lubrizol Corp................. 148,225
22,200 Monsanto Corp................. 1,240,425
3,200 Rohm & Haas Co................ 332,600
8,100 W.R. Grace & Co............... 138,206
-----------
3,405,006
-----------
Computer Services (2.2%):
18,300 America Online, Inc. (b)...... 1,939,800
6,400 Electronic Data Systems
Corp........................ 256,000
-----------
2,195,800
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Computer Software (4.4%):
21,750 Cisco Systems, Inc. (b)....... $ 2,002,359
8,000 Computer Associates
International, Inc.......... 444,500
10,800 Compuware Corp. (b)........... 552,150
5,100 Fiserv, Inc. (b).............. 216,591
10,000 Microsoft Corp. (b)........... 1,083,750
-----------
4,299,350
-----------
Computers (1.8%):
12,600 Compaq Computer Corp.......... 357,525
7,400 Intel Corp.................... 548,525
7,200 International Business
Machines Corp............... 826,650
2,000 Stratus Computer, Inc. (b).... 50,625
-----------
1,783,325
-----------
Cosmetics & Toiletries (1.2%):
7,700 Avon Products, Inc............ 596,750
10,000 Gillette Co................... 566,875
-----------
1,163,625
-----------
Data Processing Services (0.6%):
7,600 Automatic Data Processing,
Inc......................... 553,850
-----------
Diversified Products (0.6%):
10,100 Aeroquip-Vickers, Inc......... 589,587
-----------
Electrical Equipment (0.1%):
7,000 Arrow Electronics, Inc. (b)... 152,250
-----------
Electronic Components (1.2%):
5,400 Avnet, Inc.................... 295,312
5,450 Parker-Hannifin Corp.......... 207,781
9,750 Tektronix, Inc................ 344,906
5,400 Texas Instruments, Inc........ 314,887
-----------
1,162,886
-----------
Engines -- Internal Combustion (0.6%):
10,800 Cummins Engine Co., Inc....... 553,500
-----------
Environmental Services (0.5%):
13,700 Waste Management, Inc......... 479,500
-----------
</TABLE>

Continued
-23-
<PAGE> 24
THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (5.9%):
7,205 Associates First Capital
Corp........................ $ 553,885
7,200 Capital One Financial Corp.... 894,150
2,300 Citicorp...................... 343,275
7,700 Countrywide Credit Industries,
Inc. -- Class D............. 390,775
8,200 Federal National Mortgage
Assoc....................... 498,150
5,400 Merrill Lynch & Co., Inc...... 498,150
6,500 MGIC Investment Corp.......... 370,906
14,300 Newcourt Credit Group, Inc.... 703,381
11,200 Paychex, Inc.................. 455,700
24,750 Washington Mutual, Inc........ 1,075,078
-----------
5,783,450
-----------
Food & Related (1.2%):
8,100 IBP, Inc...................... 146,812
3,800 Ralston-Ralston Purina
Group....................... 443,888
5,800 Sara Lee Corp................. 324,438
12,000 Universal Foods Corp.......... 266,250
-----------
1,181,388
-----------
Forest & Paper Products (0.7%):
12,800 Fort James Corp............... 569,600
4,000 Westvaco Corp................. 113,000
-----------
682,600
-----------
Healthcare Cost Containment (0.9%):
18,100 Allegiance Corp............... 927,625
-----------
Household -- General Products (0.1%):
5,000 Tupperware Corp............... 140,625
-----------
Human Resources (0.2%):
16,400 Olsten Corp................... 183,475
-----------
Insurance (5.8%):
4,700 Allstate Corp................. 430,344
4,800 American General Corp......... 341,700
7,800 American International Group,
Inc......................... 1,138,800
6,600 Cigna Corp.................... 455,400
7,300 Everest Reinsurance Holdings,
Inc......................... 280,594
6,700 Exel Ltd...................... 521,344
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
1,300 General Re Corp............... $ 329,550
3,300 Hartford Financial Services
Group....................... 377,437
2,000 Loews Corp.................... 174,250
9,750 Old Republic International
Corp........................ 285,797
6,800 ReliaStar Financial Corp...... 326,400
3,150 Transatlantic Holdings,
Inc......................... 243,534
12,300 Travelers Group, Inc.......... 745,687
-----------
5,650,837
-----------
Linen Supply & Related Items (0.3%):
5,200 Cintas Corp................... 265,200
-----------
Machine Tools & Related Products (0.4%):
9,200 Kennametal, Inc............... 384,100
-----------
Machinery & Equipment (1.5%):
15,000 Case Corp..................... 723,750
3,600 Caterpillar, Inc.............. 190,350
11,600 Harnischfeger Industries,
Inc......................... 328,425
4,600 Tecumseh Products Co., Class
A........................... 242,938
-----------
1,485,463
-----------
Manufacturing (1.5%):
21,600 Loral Space And Communication
Ltd......................... 610,200
13,800 Tyco International Ltd........ 869,400
-----------
1,479,600
-----------
Medical -- HMO (0.6%):
8,400 Columbia/HCA Healthcare
Corp........................ 244,650
12,140 Foundation
HealthCorp. -- Class A
(b)......................... 320,192
6,100 Maxicare Health Plans, Inc.
(b)......................... 41,175
2,000 Vencor, Inc. (b).............. 14,500
-----------
620,517
-----------
Medical Services & Supplies (0.8%):
30,800 HEALTHSOUTH Corp. (b)......... 821,975
-----------
Medical -- Hospitals (0.2%):
4,900 Tenet Healthcare Corp. (b).... 153,125
-----------
</TABLE>

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

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Medical -- Information Systems (2.8%):
79,000 HBO & Co...................... $ 2,784,750
-----------
Medical -- Instruments/Products (1.7%):
7,300 Beckman Coulter, Inc.......... 425,225
15,600 Guidant Corp.................. 1,112,475
3,100 Mallinckrodt, Inc............. 92,031
-----------
1,629,731
-----------
Medical -- Wholesale Drug Distribution (0.8%):
8,250 Cardinal Health, Inc.......... 773,437
-----------
Motor Vehicles (1.8%):
15,200 Ford Motor Co................. 896,800
12,300 General Motors Corp........... 821,794
-----------
1,718,594
-----------
Office Supplies & Forms (0.1%):
3,400 Standard Register Co.......... 120,275
-----------
Oil & Gas (2.7%):
17,200 Cooper Cameron Corp........... 877,200
16,300 Enron Corp.................... 881,219
26,500 Noble Drilling Corp. (b)...... 637,656
9,900 YPF Sociedad Anonima-
Sponsored ADR............... 297,619
-----------
2,693,694
-----------
Oil & Gas -- Exploration/Production (2.4%):
14,700 Anadarko Petroleum Corp....... 987,656
3,100 British Petroleum Co., Plc.... 273,575
29,500 Cross Timbers Oil Co.......... 562,344
14,040 Ocean Energy Inc.............. 274,658
6,900 Ultramar Diamond Shamrock
Corp........................ 217,781
-----------
2,316,014
-----------
Oil & Gas Drilling (0.4%):
20,200 Nabors Industries, Inc. (b)... 400,213
-----------
Oil -- Gas Services (2.1%):
22,900 Halliburton Co................ 1,020,481
23,500 Rowan Cos., Inc. (b).......... 456,781
8,600 Schlumberger Ltd.............. 587,488
-----------
2,064,750
-----------
Oil -- Integrated Companies (1.8%):
9,100 Atlantic Richfield Co......... 710,938
11,200 Mobil Corp.................... 858,200
4,600 Phillips Petroleum Co......... 221,663
-----------
1,790,801
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals (4.7%):
14,200 Pfizer Inc.................... $ 1,543,363
9,600 Schering Plough Corp.......... 879,600
31,500 Warner Lambert................ 2,185,313
-----------
4,608,276
-----------
Publishing -- Newspaper (0.8%):
9,700 New York Times Co., Class A... 768,725
-----------
Radio (0.4%):
8,000 Chancellor Media Corp. (b).... 397,250
-----------
Railroad (0.3%):
600 Burlington Northern Santa
Fe.......................... 58,913
4,100 CSX Corp...................... 186,550
-----------
245,463
-----------
Real Estate (0.0%):
1,600 Ventas, Inc. (b).............. 22,100
-----------
Restaurants (2.2%):
10,100 McDonald's Corp............... 696,900
27,500 Starbucks Corp. (b)........... 1,469,531
-----------
2,166,431
-----------
Retail (14.4%):
20,700 Bed Bath & Beyond, Inc........ 1,072,519
14,400 Borders Group, Inc. (b)....... 532,800
40,400 CVS Corporation............... 1,573,075
12,100 Dayton Hudson Corp............ 586,850
8,800 Dillards Inc., Class A........ 364,650
3,100 Federated Department Stores,
Inc. (b).................... 166,819
27,300 Home Depot, Inc............... 2,267,606
11,100 Kohls Corp. (b)............... 575,813
13,600 Price/Costco Companies, Inc.
(b)......................... 857,650
27,500 Safeway, Inc. (b)............. 1,118,906
28,800 Sears Roebuck & Co............ 1,758,600
34,400 TJX Cos., Inc................. 829,900
18,400 Toys 'R' Us, Inc.(b).......... 433,550
11,200 Venator Group, Inc............ 214,200
18,500 Wal Mart Stores............... 1,123,875
14,700 Walgreen Co................... 607,294
-----------
14,084,107
-----------
Steel (0.3%):
8,800 Inland Steel Industries,
Inc......................... 248,050
-----------
</TABLE>

Continued
-25-
<PAGE> 26
THE SESSIONS GROUP
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Telecommunications (8.9%):
26,600 Ascend Communications, Inc.
(b)......................... $ 1,318,363
7,800 Bell Atlantic Corp............ 355,875
18,200 Ciena Corp. (b)............... 1,267,175
18,400 Lucent Technologies, Inc...... 1,530,650
27,000 NEXTEL Communications (b)..... 671,625
41,033 Tele-Communications, Inc.
(b)......................... 1,577,206
12,900 Tellabs, Inc. (b)............. 923,963
22,500 WorldCom, Inc. (b)............ 1,089,844
-----------
8,734,701
-----------
Textile (0.2%):
5,000 Springs Industries, Inc....... 230,625
-----------
Tires & Rubber Products (0.6%):
9,300 Goodyear Tire & Rubber Co..... 599,269
-----------
Tobacco (0.9%):
13,200 Philip Morris Cos., Inc....... 519,750
14,500 RJR Nabisco Holdings Corp..... 344,375
-----------
864,125
-----------
Transportation-Air (1.0%):
3,000 AMR Corp. Del (b)............. 249,750
6,000 Delta Air Lines, Inc.......... 775,500
-----------
1,025,250
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Utilities-Electric (0.8%):
3,100 Cinergy Corp.................. $ 108,500
4,800 DTE Energy Co................. 193,800
2,611 Duke Energy Corp.............. 154,702
5,600 Entergy Corp.................. 161,000
4,600 GPU, Inc...................... 173,938
-----------
791,940
-----------
Total Common Stocks........... 92,594,031
-----------
REPURCHASE AGREEMENTS (6.0%):
$5,885,988 Fifth Third Bank Repurchase
Agreement, 6/30/98, 5.15%,
matures 7/1/98,
(Collateralized by
$5,972,000 Federal National
Mortgage Association Pool
#323020, 6.50%,2/1/13,
market value =
$6,005,590)................. 5,885,988
-----------
Total Repurchase Agreements... 5,885,988
-----------
Total (Cost $76,059,796)
(a)......................... $98,480,019
===========
</TABLE>

- ---------
Percentages indicated are based on net assets of $98,083,218.

(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $26,360.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:

<TABLE>
<S> <C>
Unrealized appreciation......................... $24,817,622
Unrealized depreciation......................... (2,423,759)
-----------
Net unrealized appreciation..................... $22,393,863
</TABLE>

(b) Represents non-income producing securities

See notes to financial statements.

-26-
<PAGE> 27

THE SESSIONS GROUP
1ST SOURCE MONOGRAM SPECIAL EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS (78.4%):
Advertising (1.6%):
18,000 Ha-Lo Industries, Inc., (b)... $ 560,250
-----------
Aerospace/Defense -- Equipment (1.9%):
22,500 AAR Corp. .................... 665,156
-----------
Automotive Parts (2.1%):
17,000 Tower Automotive (b).......... 728,875
-----------
Banking (3.7%):
11,000 Bank United Corp., Class A.... 526,625
12,600 Provident Bankshares Corp. ... 371,700
12,000 Webster Financial Corp. ...... 399,000
-----------
1,297,325
-----------
Business Equipment & Services (2.7%):
8,000 Education Management Corp.
(b)......................... 263,001
21,000 Sylvan Learning Systems (b)... 687,750
-----------
950,751
-----------
Computer Software (9.9%):
10,000 Aspen Technologies, Inc.
(b)......................... 505,000
21,000 Axent Technologies, Inc.
(b)......................... 643,125
14,000 Citrix Systems, Inc. (b)...... 957,250
10,500 Harbinger Corp. (b)........... 253,969
13,000 JDA Software Group, Inc.
(b)......................... 568,750
8,000 Keane, Inc. (b)............... 448,000
4,000 Smallworldwide PLC-ADR (b).... 116,500
-----------
3,492,594
-----------
Computers (1.4%):
12,000 Zebra Technology (b).......... 513,000
-----------
Construction - Engineering (0.4%):
8,000 URS Corp. (b)................. 136,000
-----------
Cruise Lines (1.8%):
8,000 Royal Caribbean Cruises
Ltd. ....................... 636,000
-----------
Data Processing & Reproduction (1.9%):
14,000 Analytical Surveys, Inc.
(b)......................... 512,750
14,000 Carreker-Antinori, Inc. (b)... 147,000
-----------
659,750
-----------
Data Processing Services (0.9%):
19,000 CCC Information Services
Group, Inc. (b)............. 313,500
-----------
Distribution Services (3.2%):
50,000 Brightpoint, Inc. (b)......... 725,000
8,000 CDW Computer Centers, Inc.
(b)......................... 400,000
-----------
1,125,000
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electronic Components (2.9%):
56,000 Amkor Technology, Inc. (b).... $ 523,250
12,000 Sanmina Corp. (b)............. 520,500
-----------
1,043,750
-----------
Environmental Services (1.8%):
45,000 Stericycle, Inc. (b).......... 652,500
-----------
Financial Services (2.9%):
6,000 CMAC Investment Corp.......... 369,000
14,000 Franchise Mortgage Acceptance
Co. (b)..................... 364,875
14,000 NCO Group, Inc. (b)........... 308,000
-----------
1,041,875
-----------
Food & Related (1.8%):
22,000 Michael Foods, Inc. .......... 646,250
-----------
Health & Personal Care (1.4%):
14,000 Sunrise Assisted Living, Inc.
(b)......................... 481,250
-----------
Household -- General Products (0.9%):
28,000 Home Products International,
Inc. (b).................... 325,500
-----------
Human Resources (1.1%):
21,900 SOS Staffing Services, Inc.
(b)......................... 384,619
-----------
Insurance (2.3%):
16,000 Nationwide Financial.......... 816,000
-----------
Leisure & Recreational Products (1.2%):
18,200 North Face, Inc. (b).......... 436,800
-----------
Medical & Hospital Management Services (3.9%):
19,000 Health Care & Retirement Corp.
(b)......................... 749,312
30,000 Orthodontic Centers Of
America, Inc. (b)........... 628,125
-----------
1,377,437
-----------
Medical -- Instruments/Products (1.8%):
19,000 ESC Medical Systems, Ltd.
(b)......................... 641,250
-----------
Oil & Gas Services (1.1%):
36,200 Newpark Resources, Inc. (b)... 402,725
-----------
Pharmaceuticals (2.1%):
21,000 PAREXEL International Corp.
(b)......................... 763,875
-----------
</TABLE>

Continued
-27-
<PAGE> 28
THE SESSIONS GROUP
1ST SOURCE MONOGRAM SPECIAL EQUITY FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail (7.8%):
26,000 Ames Department Stores, Inc.
(b)......................... $ 684,125
15,000 BJ's Wholesale Club, Inc.
(b)......................... 609,375
23,000 Casey's General Stores........ 380,937
8,000 Family Dollar Stores.......... 148,000
15,000 Regis Corp. .................. 443,437
8,000 The Buckle, Inc. (b).......... 236,000
10,000 The Finish Line (b)........... 281,250
-----------
2,783,124
-----------
Savings & Loans (3.1%):
18,000 Dime Community Bancorp,
Inc. ....................... 499,500
10,550 ITLA Capital Corp. (b)........ 218,913
16,000 Peoples Heritage Bancorp...... 378,000
-----------
1,096,413
-----------
Telecommunications (3.1%):
18,000 Pacific Gateway Exchange, Inc.
(b)......................... 721,125
14,000 Teleglobe, Inc. .............. 371,000
-----------
1,092,125
-----------
Textile-Products (1.1%):
24,000 Dan River, Inc. (b)........... 408,000
-----------
Transportation-Air (4.6%):
22,500 Comair Holdings, Inc. ........ 694,688
31,500 Southwest Airlines Co. ....... 933,187
-----------
1,627,875
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities-Telephone (2.0%):
20,000 Qwest Communications
International (b)........... $ 697,500
-----------
Total Common Stocks........... 27,797,069
-----------
WARRANTS (0.0%):
5,000 Alza Corp. ................... 2,500
-----------
Total Warrants................ 2,500
-----------
REPURCHASE AGREEMENTS (27.5%):
$9,732,398 Fifth Third Bank Repurchase
Agreement, 6/30/98, 5.15%,
matures 7/1/98,
(Collateralized by
$9,872,000 Federal National
Mortgage Association Pool #
323020, 6.50%, 2/1/13,
market value =
$9,927,530)................. $ 9,732,398
-----------
Total Repurchase Agreements... 9,732,398
-----------
Total (Cost $33,655,338)
(a)......................... $37,531,967
===========
</TABLE>

- ---------

Percentages indicated are based on net assets of $35,441,122.

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

<TABLE>
<S> <C>
Unrealized appreciation......................... $ 4,816,886
Unrealized depreciation......................... (940,257)
-----------
Net unrealized appreciation..................... $ 3,876,629
===========
</TABLE>

(b) Represents non-income producing securities

See notes to financial statements.

-28-
<PAGE> 29

THE SESSIONS GROUP
1ST SOURCE MONOGRAM INCOME FUND

SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1998

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS (28.1%):
Financial Services (18.8%):
3,000,000 American General Finance
Corp., 6.25%, 12/18/02...... $ 3,021,477
3,000,000 Charles Schwab Corp., 6.42%,
5/27/05..................... 3,046,593
3,000,000 Donaldson Lufkin & Jenrette,
6.88%, 11/1/05.............. 3,098,769
3,000,000 Merrill Lynch & Co., 8.30%,
11/1/02..................... 3,258,477
-----------
12,425,316
-----------
Industrial Goods & Services (9.3%):
3,000,000 International Paper Co.,
7.00%, 6/1/01............... 3,066,396
3,000,000 Texas Instruments, Inc.,
6.88%, 7/15/00.............. 3,056,352
-----------
6,122,748
-----------
Total Corporate Bonds......... 18,548,064
-----------
U.S. TREASURY OBLIGATIONS (23.4%):
3,000,000 6.75%, 4/30/00................ 3,062,814
3,000,000 6.25%, 10/31/01............... 3,061,875
3,000,000 6.25%, 8/31/02................ 3,077,814
3,000,000 6.25%, 2/15/03................ 3,087,189
3,000,000 6.50%, 8/15/05................ 3,166,875
-----------
Total U.S. Treasury
Obligations................. 15,456,567
-----------
</TABLE>

<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ---------- ------------------------------ -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (46.2%):
Federal Home Loan Bank (4.6%):
3,000,000 6.05%, 12/2/02................ $ 3,042,186
-----------
Federal Home Loan Mortgage Corporation (14.0%):
3,000,000 6.65%, 3/10/04................ 3,132,033
3,000,000 6.24%, 10/6/04................ 3,079,437
3,000,000 6.54%, 11/6/07, Callable
11/6/02 @ 100............... 3,050,373
-----------
9,261,843
-----------
Fannie Mae (27.6%):
3,000,000 6.10%, 4/28/03, Callable
4/28/00 @ 100............... 3,003,357
3,000,000 6.16%, 5/8/03, Callable 5/8/00
@ 100....................... 3,005,877
3,000,000 5.75%, 6/15/05................ 3,010,563
3,000,000 6.65%, 3/8/06, Callable 3/8/01
At Par...................... 3,055,035
3,000,000 6.95%, 11/13/06, Callable
11/13/01 @ 100.............. 3,102,093
3,000,000 6.68%, 5/15/08, Callable
5/15/00 @ 100............... 3,023,103
-----------
18,200,028
-----------
Total U.S. Government
Agencies.................... 30,504,057
-----------
REPURCHASE AGREEMENT (0.9%):
$ 614,991 Fifth Third Bank Repurchase
Agreement, 6/30/98, 5.15%,
matures 7/1/98,
(Collateralized by $624,000
Federal National Mortgage
Association Pool # 323020,
6.50%, 2/1/13, market value
= $627,510.................. 614,991
-----------
Total Repurchase Agreement.... 614,991
-----------
Total (Cost $64,771,877)
(a)......................... $65,123,679
===========
</TABLE>

- ---------

Percentages indicated are based on net assets of $65,975,086.

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

<TABLE>
<S> <C>
Unrealized appreciation......................... $ 386,613
Unrealized depreciation......................... (34,811)
---------
Net unrealized appreciation..................... $ 351,802
=========
</TABLE>

See notes to financial statements.

-29-
<PAGE> 30

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998

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: the 1st Source
Monogram Income Equity Fund, the 1st Source Monogram Diversified Equity
Fund, the 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 objective of the Income Fund
is 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 Income
Equity Fund, the Diversified Equity Fund, the Special Equity Fund, and the
Income Fund 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
-30-
<PAGE> 31
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1998

discount. Dividend income is recorded on the ex-dividend date. Gains or
losses realized on sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.

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,
it places in a segregated custodial account assets 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:

Derivatives are defined as financial instruments 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, futures contracts, options, and forward
currency contracts. Risks of entering into such transactions include the
potential inability of the dealer to meet its 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 its
investments in derivative instruments. It is the Funds' 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.

DIVIDENDS TO SHAREHOLDERS:

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

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

NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1998

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.

These "book/tax" differences are either considered temporary or permanent
in nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the composition of net assets on their
federal tax-basis treatment; temporary differences do not require
reclassifications. Dividends and distributions to shareholders which exceed
net investment income and net realized gains for financial reporting
purposes but not for tax purposes are reported as dividends in excess of
net investment income or distributions in excess of net realized gains. To
the extent they exceed net investment income and net realized gains for tax
purposes, they are reported as distributions of capital.

As of June 30, 1998, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments, if any, made
to paid-in-capital:

<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET NET REALIZED GAIN/(LOSS)
INVESTMENT INCOME ON INVESTMENTS
----------------- ------------------------
<S> <C> <C>
Income Equity Fund................. $ 1,392 $ (1,392)
Diversified Equity Fund............ $ 162,466 $(162,466)
</TABLE>

FEDERAL INCOME TAXES:

It is the policy of the Funds to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially
all, Federal income taxes.

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.

Continued
-32-
<PAGE> 33
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1998

3. PURCHASES AND SALES OF SECURITIES:

Purchases and sales of securities (excluding short-term securities) for the
year ended June 30, 1998, are as follows:

<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Income Equity Fund.......................... $ 34,438,498 $ 30,372,527
Diversified Equity Fund..................... 78,078,479 77,325,284
Special Equity Fund......................... 38,848,137 34,833,869
Income Fund................................. 131,984,438 120,054,411
</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.

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 assets, of each Fund. The Group has
not implemented such a plan as of June 30, 1998.

Continued
-33-
<PAGE> 34
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1998

BISYS is also entitled to receive commissions on sales of shares of the
Funds. For the year ended June 30, 1998, BISYS received $2,966 from
commissions earned on sales of shares of the Funds, of which $1,211 was
reallowed to broker/dealers affiliated with 1st Source Bank.

Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the year ended June 30, 1998:

<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%
ADMINISTRATION FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)....... .20% .20% .20% .20%
12b-1 FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)....... .25% .25% .25% .25%
Voluntary fee reductions................... $117,001 $220,552 $85,188 $151,899
FUND ACCOUNTING FEES....................... $ 20,243 $ 35,425 $14,267 $ 24,106
TRANSFER AGENT FEES........................ $ 29,653 $ 36,199 $33,006 $ 33,185
</TABLE>

5. FEDERAL INCOME TAX INFORMATION (UNAUDITED):

Under current tax law, capital losses realized after October 31 may be
deferred and treated as occurring on the first day of the following fiscal
year. As of June 30, 1998 the Special Equity Fund had deferred losses of
$2,303,588 which will be treated as arising on the first day of the fiscal
year ending June 30, 1999.

During the period ended June 30, 1998, the following Funds declared
long-term capital gain distributions in the following amounts:

<TABLE>
<CAPTION>
MID-TERM LONG-TERM
FUND 28% 20%
---- ---------- ----------
<S> <C> <C>
Income Equity................................. $1,143,403 $ 854,335
Diversified Equity............................ $4,310,660 $1,822,860
Special Equity................................ $ -- $ 446,791
</TABLE>

Continued
-34-
<PAGE> 35
THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1998

The Group designates the following percentage of distributions eligible for
the dividends received deductions for corporations.

<TABLE>
<CAPTION>
FUND PERCENTAGE
---- ----------
<S> <C>
Income Equity............................................... 28.59%
Diversified Equity.......................................... 17.83%
Special Equity.............................................. 56.42%
Income Fund................................................. 4.25%
</TABLE>

6. FINANCIAL INSTRUMENTS:

The Funds are approved to invest in financial instruments such as written
options which involve risk. The face or contract amounts reflect the extent
of the involvement the Funds have in the particular class of instruments.
Risks associated with these instruments include an imperfect correlation
between the movements in the price of the instruments and the price of the
underlying securities. The Funds enter into these contracts primarily as a
means to hedge against adverse fluctuations in the value of securities.

The following is a summary of written option activity for the year ended
June 30, 1998 by the Income Equity Fund:

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNTS
OF CONTRACTS PREMIUMS
------------ --------
<S> <C> <C>
Balance at beginning of period..................... 110 $11,193
Options written.................................... 604 919,394
Options closed..................................... 714 930,587
Options exercised.................................. 0 0
--- -------
Options outstanding at end of period............... 0 0
</TABLE>

Continued
-35-
<PAGE> 36

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
INCOME EQUITY FUND DIVERSIFIED EQUITY FUND
------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997(a) 1998 1997(a)
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD...... $ 12.28 $ 10.00 $ 11.80 $ 10.00
------- ------- ------- --------
INVESTMENT ACTIVITIES
Net investment income (loss)............ 0.27 0.20 (0.02) (0.01)
Net realized and unrealized gains
(losses) on investments.............. 1.79 2.32 3.00 2.03
------- ------- ------- --------
Total from Investment Activities..... 2.06 2.52 2.98 2.02
------- ------- ------- --------
DISTRIBUTIONS
Net investment income................... (0.27) (0.19) -- --
Net realized gains...................... (1.47) (0.05) (1.47) (0.22)
In excess of realized gains............. -- -- -- --
------- ------- ------- --------
Total Distributions.................. (1.74) (0.24) (1.47) (0.22)
------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD............ $ 12.60 $ 12.28 $ 13.31 $ 11.80
======= ======= ======= ========
Total Return.............................. 18.15% 25.58%(b) 27.85% 20.42%(b)

RATIOS/SUPPLEMENTAL DATA:
Net Assets, at end of period (000)...... $52,450 $39,196 $98,083 $ 74,990
Ratio of expenses to average net
assets............................... 1.21% 1.37%(c) 1.48% 1.62%(c)
Ratio of net investment income (loss) to
average net assets................... 2.16% 2.38%(c) (0.18)% (0.10)%(c)
Ratio of expenses to average net
assets*.............................. 1.46% 1.62%(c) 1.73% 1.87%(c)
Ratio of net investment income (loss) to
average net assets*.................. 1.91% 2.13%(c) (0.43)% (0.35)%(c)
Portfolio Turnover Rate................. 70.46% 38.49% 95.13% 76.54%
</TABLE>

- ---------

<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If
such voluntary fee reductions had not occured, 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
(c) Annualized
</TABLE>

See notes to financial statements.
-36-
<PAGE> 37

THE SESSIONS GROUP
1ST SOURCE MONOGRAM FUNDS

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
SPECIAL EQUITY FUND INCOME FUND
------------------------- -------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997(a) 1998 1997(a)
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........ $ 9.59 $ 10.00 $ 10.13 $ 10.00
------- ------- ------- -------
INVESTMENT ACTIVITIES
Net investment income (loss).............. -- -- 0.60 0.44
Net realized and unrealized gains (losses)
on investments......................... 0.17 (0.10) (d) 0.21 0.12
------- ------- ------- -------
Total from Investment Activities....... 0.17 (0.10) 0.81 0.56
------- ------- ------- -------
DISTRIBUTIONS
Net investment income..................... ** ** (0.60) (0.43)
Net realized gains........................ (0.13) -- -- --
In excess of realized gains............... -- (0.31) -- --
------- ------- ------- -------
Total Distributions.................... (0.13) (0.31) (0.60) (0.43)
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD.............. $ 9.63 $ 9.59 $ 10.34 $ 10.13
======= ======= ======= =======
Total Return................................ 1.86% (1.03)%(b) 8.24% 5.71%(b)

RATIOS/SUPPLEMENTAL DATA:
Net Assets, at end of period (000)........ $35,441 $30,524 $65,975 $54,789
Ratio of expenses to average net assets... 1.27% 1.39% (c) 0.92% 1.05%(c)
Ratio of net investment income (loss) to
average net assets..................... 0.04% 0.05% (c) 5.90% 5.71%(c)
Ratio of expenses to average net
assets*................................ 1.52% 1.65% (c) 1.17% 1.30%(c)
Ratio of net investment income (loss) to
average net assets*.................... (0.21)% (0.21)%(c) 5.65% 5.46%(c)
Portfolio Turnover Rate................... 124.55% 152.81% 208.32% 118.33%
</TABLE>

- ---------

<TABLE>
<C> <S>
* During the period certain fees were voluntarily reduced. If
such voluntary fee reductions had not occured, the ratios
would have been as indicated.
** Amount is less than $0.005
(a) Commencement of operations of the Funds began September 20,
1996, and September 24, 1996, respectively.
(b) Not annualized
(c) Annualized
(d) The amount shown, while mathematically determinable by the
summation of amounts computed for as many periods during the
year as shares were sold or repurchased, is also the
balancing figure derived from the other figures in the
statement and should be so computed. 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.
</TABLE>

See notes to financial statements.
-37-
<PAGE> 38

REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------

To the Shareholders and Trustees of
1st Source Monogram Funds

In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of
operations, and changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of 1st Source Monogram
Funds (comprising, respectively, the Income Equity Fund, Diversified Equity
Fund, Special Equity Fund, and Income Fund) at June 30, 1998, the results of
each of their operations for the year ended June 30, 1998, the changes in each
of their net assets for the two years ended June 30, 1998 and 1997, and their
financial highlights for the two years ended June 30, 1998 and 1997, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of 1st Source Monogram Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at June
30, 1998 by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP

Columbus, Ohio
August 11, 1998

-38-
<PAGE> 39
A N N U A L R E P O R T

[1ST SOURCE MONOGRAM FUNDS LOGO]

LOGO

INVESTMENT ADVISER

1ST SOURCE BANK

100 NORTH MICHIGAN STREET

SOUTH BEND, IN 46601
ANNUAL REPORT

DISTRIBUTOR JUNE 30, 1998

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.

8/98