The Munder Funds, Inc.
The Munder Funds Trust
Supplement Dated February 29, 1996
to Statement of Additional Information Dated October 28, 1995
Munder Multi-Season Growth Fund, Munder Real Estate Equity
Investment Fund,
Munder Accelerating Growth Fund, Munder Small Company Growth
Fund,
Munder Mid-Cap Growth Fund, Munder International Equity Fund,
Munder Index 500 Fund,
Munder Growth & Income Fund, Munder Value Fund, Munder
Balanced Fund, Munder Bond Fund, Munder Intermediate Bond Fund,
Munder U.S. Government Income Fund,
Munder Michigan Triple Tax-Free Bond Fund, Munder Tax-Free Bond
Fund,
Munder Tax-Free Intermediate Bond Fund, Munder Money Market
Fund,
Munder Tax-Free Money Market Fund, Munder U.S. Treasury Money
Market Fund
and Munder Cash Investment Fund (collectively, the "Funds")
The following unaudited Financial Statements dated
December 31, 1995 relating to the Munder Mid-Cap Growth Fund
and Munder Value Fund supplement the Funds' Statement of
Additional Information dated October 28, 1995.
shared/bankgrp/munder/parta/296sai1
THE MUNDER MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C>
COMMON STOCKS - 99.4%
BANKING AND FINANCE - 2.0%
5,000 MBIA Inc. $375,000
BASIC INDUSTRIES - 6.0%
18,600 BMC Industries 432,450
10,000 Minerals Technologies 365,000
6,800 Pentair, Inc. 338,300
-------
1,135,750
---------
BROADCASTING - 2.2%
11,200 Infinity Broadcasting Corporation, Class A+ 417,200
-------
CAPITAL GOODS - 4.1%
16,500 Allen Group, Inc. 369,187
16,000 Federal Signal Corporation 414,000
-------
783,187
-------
COMMERCIAL SERVICES - 14.1%
10,600 Affiliated Computer Services, Class A+ 397,500
12,500 American Medical Response, Inc.+ 406,250
16,000 Cerner Corporation+ 328,000
11,400 ITI Technology Inc.+ 339,150
14,400 Keane Inc.+ 318,600
13,000 Quintiles Transnational Corporation+ 533,000
10,000 Stewart Enterprises Inc., Class A 370,000
-------
2,692,500
---------
COMPUTER HARDWARE, SOFTWARE OR SERVICES - 9.5%
20,000 Black Box Corporation+ 327,500
12,000 Diamond Multimedia Systems+ 430,500
17,000 Netmanage Inc.+ 395,250
6,000 Objective Systems Integrator+ 328,500
14,000 Symantec Corporation+ 325,500
-------
1,807,250
---------
ELECTRICAL EQUIPMENT - 4.2%
10,000 Lam Research Corporation+ 457,500
14,000 Tencor Instruments+ 341,250
-------
798,750
-------
ELECTRICAL MACHINERY - 1.6%
16,000 Mark IV Industries, Inc. 316,000
-------
ELECTRONICS - 2.1%
15,500 AVX Corporation 410,750
-------
ELECTRONICS - SEMICONDUCTORS - 9.8%
3,200 Altera Corporation+ 159,200
14,000 International Rectifier Corporation+ 350,000
19,000 Lattice Semiconductor Corporation+ 619,875
10,000 Maxim Integrated Products, Inc.+ 385,000
11,600 Xilinx Inc.+ 353,800
-------
1,867,875
---------
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE MUNDER MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C>
COMMON STOCKS (Continued)
HEALTH CARE FACILITIES - 7.1%
11,000 Health Care & Retirement Corporation+ $385,000
14,000 Health Management Associates, Inc., Class A+ 365,750
6,000 Surgical Care 204,000
12,000 Vencor Inc. 390,000
-------
1,344,750
---------
HOTELS - 2.2%
19,000 Promus Hotel Corporation+ 422,750
-------
INSURANCE - 4.3%
18,600 Capmac Holdings+ 467,325
11,000 Equitable of Iowa, (New) 353,375
-------
820,700
-------
IRON/STEEL - 1.6%
25,000 Citation Corporation+ 300,000
-------
MACHINERY - DIVERSIFIED - 2.1%
8,500 York International Corporation 399,500
-------
MEDICAL INSTRUMENTS & SUPPLIES - 12.4%
19,500 Biomet, Inc.+ 348,563
8,600 Boston Scientific Corporation+ 421,400
15,200 Mylan Laboratories, Inc. 357,200
7,300 Nellcor Puritan Bennett Inc.+ 428,875
14,000 Patterson Dental+ 378,000
24,000 Physio-Control International Corporation+ 429,000
-------
2,363,038
---------
MEDICAL SERVICES - 0.8%
3,500 Healthcare COMPARE Corporation+ 152,250
-------
METAL FABRICATE/HARDWARE - 1.8%
9,000 Wolverine Tube Inc.+ 337,500
-------
PACKAGING & CONTAINER - 1.9%
9,500 AptarGroup Inc. 355,063
-------
PUBLISHING/PRINTING - 2.4%
37,000 Mail-Well Inc.+ 453,250
-------
RETAIL - 2.6%
13,300 Dollar Tree Stores+ 329,175
7,700 General Nutrition Companies, Inc.+ 177,100
-------
506,275
-------
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE MUNDER MID-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C>
COMMON STOCKS (Continued)
TELECOMMUNICATIONS - 0.7%
4,000 Aspect Telecommunications+ $134,000
--------
TEXTILES - 2.1%
10,000 Jones Apparel Group+ 393,750
-------
TRANSPORTATION SERVICES - 1.8%
13,000 Expeditors International 339,625
-------
TOTAL COMMON STOCKS
(Cost $18,634,359) 18,926,713
----------
PRINCIPAL
AMOUNT
------
REPURCHASE AGREEMENT - 0.4% (COST $80,000)
$80,000 Agreement with Morgan (J.P.) & Company,
5.600% dated 12/29/1995 to be repurchased
at $80,050 on 01/02/1996, collateralized
by $68,000 U.S. Treasury Notes, 7.625%
due 11/15/2022 (value $82,365) 80,000
------
TOTAL INVESTMENTS (COST $18,714,359*) 99.8 % 19,006,713
OTHER ASSETS AND LIABILITIES (NET) 0.2 30,467
--- ------
NET ASSETS 100.0 % $19,037,180
===== ===========
</TABLE>
- -----------------
*Aggregate cost for Federal tax purposes.
+Non-income producing security.
See Notes to Financial Statements.
<PAGE>
THE MUNDER MID-CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C>
Investments, at value (Cost $18,714,359)
See accompanying schedule:
Securities........................................... $ 18,926,713
Repurchase Agreements................................ 80,000
Cash......................................................... 377
Interest receivable.......................................... 37
Dividends receivable......................................... 5,047
Receivable for investment securities sold.................... 46,250
Receivable from investment advisor........................... 14,000
Unamortized organization costs............................... 51,935
------
Total Assets.................................... 19,124,359
LIABILITIES:
Payable for Fund shares redeemed............................. $ 13
Payable for investment securities purchased.................. 66,600
Investment advisory fee payable.............................. 11,696
Administration fee payable................................... 1,802
Shareholder servicing fees payable........................... 35
Distribution fees payable.................................... 16
Transfer agent fee payable................................... 367
Custodian fees payable....................................... 898
Legal and audit fees payable................................. 2,226
Accrued Trustees'/Directors' fees and expenses............... 112
Accrued expenses and other payables.......................... 3,414
-----
Total Liabilities................................. 87,179
------
NET ASSETS..................................................... $ 19,037,180
================
NET ASSETS consist of:
Undistributed net investment income.......................... $ 469
Accumulated net realized gain on investments sold............ 429,904
Net unrealized appreciation of investments................... 292,354
Par value.................................................... 1,770
Paid-in capital in excess of par value....................... 18,312,683
----------
Total Net Assets................................... $ 19,037,180
================
NET ASSET VALUE:
CLASS A SHARES:
Net asset value and redemption price per share
($34,656 / 3,223 shares of beneficial interest outstanding).... $10.75
======
Maximum sales charge........................................... 5.50%
Maximum offering price per share............................... $11.38
======
CLASS C SHARES:
Net asset value and offering price per share*
($15,385 / 1,432 shares of beneficial interest outstanding).... $10.74
======
CLASS K SHARES:
Net asset value, offering price and redemption price per share
($168,491 / 15,674 shares of beneficial interest outstanding).. $10.75
======
CLASS Y SHARES:
Net asset value, offering price and redemption price per share
($18,818,648 / 1,749,844 shares of beneficial interest outstand $10.75
======
</TABLE>
- --------------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge ("CDSC").
See Notes to Financial Statements.
<PAGE>
THE MUNDER MID-CAP GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1995 (A) (UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest..................................................... $ 38,425
Dividends.................................................... 14,739
------
Total Investment Income........................... 53,164
------
EXPENSES:
Distribution and shareholder servicing fees:
Class A Shares............................................ $ 1
Class C Shares............................................ 17
Shareholder servicing fees: Class K Shares................... 59
Investment advisory fee...................................... 40,924
Administration fee........................................... 6,312
Transfer agent fee........................................... 1,295
Custodian fees............................................... 4,510
Legal and audit fees......................................... 2,226
Trustees'/Directors' fees and expenses....................... 187
Amortization of organization costs........................... 4,721
Registration and filing fees................................. 2,358
Other........................................................ 4,085
-----
Total Expenses...................................... 66,695
Expenses reimbursed by investment advisor.................... (14,000)
-------
Net Expenses........................................ 52,695
------
NET INVESTMENT INCOME.......................................... 469
---
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from security transactions................. 429,904
Net change in unrealized appreciation of securities.......... 292,354
-------
Net realized and unrealized gain on investments................ 722,258
-------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................................... $ 722,727
================
</TABLE>
- -----------------
(a)The Munder Mid Cap Growth Fund commenced operations on August 18, 1995.
See Notes to Financial Statements.
<PAGE>
THE MUNDER MID-CAP GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PERIOD ENDED
12/31/95 (A)
(UNAUDITED)
-----------
<S> <C>
Net investment income.......................................... $ 469
Net realized gain on investments sold during the period........ 429,904
Net change in unrealized appreciation of investments
during the period............................................ 292,354
-------
Net increase in net assets resulting from operations........... 722,727
Net increase in net assets from Fund share transactions:
Class A Shares............................................... 34,002
Class C Shares............................................... 14,988
Class K Shares............................................... 163,142
Class Y Shares............................................... 18,102,321
----------
Net increase in net assets..................................... 19,037,180
NET ASSETS:
Beginning of period............................................ -
----------------
End of period (including undistributed net investment of $469). $ 19,037,180
================
</TABLE>
- -----------------
(a)The Munder Mid Cap Growth Fund commenced operations on August 18, 1995.
See Notes to Financial Statements.
<PAGE>
THE MUNDER MID-CAP GROWTH FUND
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
FOR THE PERIOD ENDED DECEMBER 31, 1995 (A) (UNAUDITED)
<TABLE>
<CAPTION>
AMOUNT SHARES
------ ------
<S> <C> <C>
CLASS A SHARES:
Sold....................... $ 34,002 3,223
---------------- -----
Net increase............... $ 34,002 3,223
================ =====
CLASS C SHARES:
Sold....................... $ 15,209 1,453
Redeemed................... (221) (21)
---- ---
Net increase............... $ 14,988 1,432
================ =====
CLASS K SHARES:
Sold....................... $ 171,718 16,501
Redeemed................... (8,576) (827)
------ ----
Net increase............... $ 163,142 15,674
================ ======
CLASS Y SHARES:
Sold....................... $ 18,112,517 1,750,806
Redeemed................... (10,196) (962)
------- ----
Net increase............... $ 18,102,321 1,749,844
================ =========
</TABLE>
- -----------------
(a)The Munder Mid-Cap Growth Fund Class A Shares, Class C Shares, Class K Shares
and Class Y Shares commenced operations on December 22, 1995, November 9,
1995, October 2, 1995 and Augutst 14, 1995, respectively.
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C>
COMMON STOCKS - 90.5%
APPAREL - 2.2%
16,300 Jones Apparel Group Inc.+ ................... $641,812
--------
BANKING AND FINANCIAL SERVICES - 15.9%
27,000 Ahmanson (H.F.) & Company .................. 715,500
14,000 BankAmerica Corporation ..................... 906,500
6,900 Finova Group Inc. ........................... 332,925
4,200 First Interstate Bancorp+ ................... 573,300
30,000 Great Western Financial Corporation.......... 765,000
37,400 Jefferson Banco ............................. 719,950
41,300 Springfield Institution for Savings+ ........ 676,288
-------
4,689,463
---------
BASIC INDUSTRIES - 1.9%
23,900 Fletcher Challenge Ord. ..................... 552,688
-------
COMPUTER HARDWARE, SOFTWARE OR SERVICES - 5.7%
23,000 Compaq Computer Corporation+ ................ 1,104,000
50,000 Computer Products Inc ....................... 575,000
-------
1,679,000
---------
COMPUTER-SEMICONDUCTORS - 2.2%
11,600 Intel Corporation ........................... 658,300
-------
ELECTRONICS - 7.6%
15,500 Lam Research Corporation+.................... 709,125
26,700 Lattice Semiconductor Corporation ........... 871,087
14,200 Raytheon Company ............................ 670,950
-------
2,251,162
---------
ENGINEERING - 2.0%
51,800 Insituform Technologies, Class A +........... 602,175
-------
FOOD AND BEVERAGES - 1.1%
10,000 Canandaigua Wine Company, Inc., Class A+ .... 326,250
100 Rykoff-Sexton Inc ........................... 1,750
-----
328,000
-------
HEALTH CARE - 1.3%
9,000 HealthCare COMPARE Corporation .............. 391,500
-------
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C>
COMMON STOCKS (Continued)
INDUSTRIAL - 4.7%
25,000 Praxair Inc. ................................ $840,625
7,000 TRW Inc. .................................... 542,500
-------
1,383,125
---------
INSURANCE - 10.5%
16,100 ACE Limited ................................. 639,975
20,100 Allstate Corporation ........................ 826,612
9,400 CIGNA Corporation ........................... 970,550
28,000 Prudential Reinsurance Holdings ............. 654,500
-------
3,091,637
---------
MACHINE-DIVERSIFIED - 1.3%
7,700 Tecumseh Products Company, Class A .......... 398,475
-------
OIL AND GAS - 8.8%
19,700 Columbia Gas System Inc ..................... 864,338
10,500 du Pont (E.I.) de Nemours & Company ......... 733,687
39,600 Union Pacific Resources Group ............... 1,004,850
---------
2,602,875
---------
PHARMACEUTICALS - 4.4%
6,100 American Home Products Corporation .......... 591,700
18,650 Pharmacia & Upjohn Incorporated ............. 722,687
-------
1,314,387
---------
RESTAURANTS - 0.9%
40,000 Ryan's Family Steak Houses Inc. + ........... 280,000
-------
TELECOMMUNICATIONS - 9.1%
10,400 American Telephone & Telegraph Corporation .. 673,400
19,900 Frontier Corporation ........................ 597,000
13,000 Harris Corporation........................... 710,125
26,900 MCI Communications Corporation .............. 702,763
-------
2,683,288
---------
TRANSPORTATION - 1.4%
15,000 Midwest Express Holdings+ ................... 416,250
-------
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C>
COMMON STOCKS (Continued)
UTILITIES - 5.9%
11,000 DQE Inc ..................................... $338,250
15,200 Entergy Corporation, New .................... 444,600
7,100 FPL Group Inc. .............................. 329,263
11,100 Illinova Corporation ........................ 333,000
11,200 TECO Energy Inc ............................. 287,000
-------
1,732,113
---------
OTHER - 3.6%
7,700 Textron, Inc ................................ 519,750
5,600 United Technologies Corporation ............. 531,300
-------
1,051,050
---------
TOTAL COMMON STOCKS
(Cost $25,250,959)........................ 26,747,300
----------
PRINCIPAL
AMOUNT
------
REPURCHASE AGREEMENT - 6.0% (COST $1,793,000)
$1,793,000 Agreement with Morgan (J.P.) & Company, 5.600% dated
12/29/1995 to be repurchased at $1,794,116 on 01/02/1996,
collateralized by $1,459,000 U.S. Treasury Notes, 8.000%
due 11/15/2021 (value $1,829,221)........ 1,793,000
---------
TOTAL INVESTMENTS (COST $27,043,959*)................... 96.5% 28,540,300
OTHER ASSETS AND LIABILITIES (Net)...................... 3.5 1,021,744
--- ---------
NET ASSETS ............................................. 100.0% $29,562,044
===== ===========
</TABLE>
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments, at value (Cost $27,043,959)
See accompanying schedule:
Securities........................................... $ 26,747,300
Repurchase Agreements................................ 1,793,000
Cash......................................................... 1,123
Interest receivable.......................................... 837
Dividends receivable......................................... 19,399
Receivable for investment securities sold.................... 1,257,623
Receivable from investment advisor........................... 14,000
Unamortized organization costs............................... 51,017
------
Total Assets.................................... 29,884,299
LIABILITIES:
Payable for investment securities purchased.................. $ 291,789
Investment advisory fee payable.............................. 18,532
Administration fee payable................................... 2,856
Shareholder servicing fees payable........................... 29
Distribution fees payable.................................... 74
Transfer agent fee payable................................... 600
Custodian fees payable....................................... 825
Legal and audit fees payable................................. 2,371
Accrued Trustees'/Directors' fees and expenses............... 178
Accrued expenses and other payables.......................... 5,001
-----
Total Liabilities................................. 322,255
-------
NET ASSETS..................................................... $ 29,562,044
================
NET ASSETS CONSIST OF:
Undistributed net investment income.......................... $ 21,799
Accumulated net realized gain on investments sold............ 95,826
Net unrealized appreciation of investments................... 1,496,341
Par value.................................................... 2,759
Paid-in capital in excess of par value....................... 27,945,319
----------
Total Net Assets................................... $ 29,562,044
================
NET ASSET VALUE:
CLASS A SHARES:
Net asset value and redemption price per share
($194,662 / 18,175 shares of beneficial interest outstanding).. $10.71
======
Maximum sales charge........................................... 5.50%
Maximum offering price per share............................... $11.33
======
CLASS B SHARES:
Net asset value and offering price per share*
($60,594 / 5,659 shares of beneficial interest outstanding).... $10.71
======
CLASS K SHARES:
Net asset value, offering and redemption price per share
($82,000 / 7,655 shares of beneficial interest outstanding).... $10.71
======
CLASS Y SHARES:
Net asset value, offering and redemption price per share
($29,224,788 / 2,727,252 shares of beneficial interest outstanding) $10.72
======
</TABLE>
- --------------------
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge ("CDSC").
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1995 (A) (UNAUDITED)
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest..................................................... $ 42,167
Dividends.................................................... 126,691
-------
Total Investment Income........................... 168,858
-------
EXPENSES:
Distribution and shareholder servicing fees:
Class A Shares............................................ $ 89
Class B Shares............................................ 134
Shareholder servicing fees: Class K Shares................... 17
Investment advisory fee...................................... 69,717
Administration fee........................................... 10,753
Transfer agent fee........................................... 2,281
Custodian fees............................................... 4,492
Legal and audit fees......................................... 2,371
Trustees'/Directors' fees and expenses....................... 339
Amortization of organization costs........................... 4,638
Registration and filing fees................................. 3,558
Other........................................................ 5,516
-----
Total Expenses...................................... 103,905
Expenses reimbursed by investment advisor.................... (14,000)
-------
Net Expenses........................................ 89,905
------
NET INVESTMENT INCOME.......................................... 78,953
------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from security transactions................. 95,826
Net change in unrealized appreciation of securities.......... 1,496,341
---------
Net realized and unrealized gain on investments................ 1,592,167
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................................... $ 1,671,120
================
</TABLE>
- -------------------
(a) The Munder Value Fund commenced operations on August 14, 1995.
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PERIOD ENDED
12/31/95 (A)
(UNAUDITED)
<S> <C>
Net investment income.......................................... $ 78,953
Net realized gain on investments sold during the period....... 95,826
Net change in unrealized appreciation of investments
during the period............................................ 1,496,341
---------
Net increase in net assets resulting from operations........... 1,671,120
Distribution to shareholders from net investment income:
Class A Shares............................................... (293)
Class B Shares............................................... -
Class K Shares............................................... (142)
Class Y Shares............................................... (56,719)
Net increase in net assets from Fund share transactions:
Class A Shares............................................... 190,978
Class B Shares............................................... 58,783
Class K Shares............................................... 82,886
Class Y Shares............................................... 27,615,431
----------
Net increase in net assets..................................... 29,562,044
NET ASSETS:
Beginning of period............................................ -
----------------
End of period (including undistributed net investment
of $21,799) $ 29,562,044
================
(a) The Munder Value Fund commenced operations on August 14, 1995.
</TABLE>
See Notes to Financial Statements.
<PAGE>
THE MUNDER VALUE FUND
STATEMENT OF CHANGES - CAPITAL STOCK ACTIVITY
FOR THE PERIOD ENDED DECEMBER 31, 1995 (A) (UNAUDITED)
<TABLE>
<CAPTION>
AMOUNT SHARES
------ ------
<S> <C> <C>
CLASS A SHARES:
Sold....................... $ 190,978 18,175
---------------- ------
Net increase............... $ 190,978 18,175
================ ======
CLASS B SHARES:
Sold....................... $ 63,390 6,104
Redeemed................... (4,607) (445)
------ ----
Net increase............... $ 58,783 5,659
================ =====
CLASS K SHARES:
Sold....................... $ 84,243 7,786
Issued as reinvestment of
dividends 5 -
Redeemed................... (1,362) (131)
------ ----
Net increase............... $ 82,886 7,655
================ =====
CLASS Y SHARES:
Sold....................... $ 27,686,747 2,733,841
Issued as reinvestment of
dividends 2,996 279
Redeemed................... (74,312) (6,868)
------- ------
Net increase............... $ 27,615,431 2,727,252
================ =========
</TABLE>
(a) The Munder Value Fund Class A Shares, Class B Shares, Class K Shares and
Class Y Shares commenced operations on September 14, 1995, September 19,
1995, November 30, 1995 and August 18, 1995, respectively.
See Notes to Financial Statements.
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS
December 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Munder Funds, Inc. ("MFI") is registered under the Investment Company
Act of 1940, as amended, (the "1940 Act"), as an open-end investment company,
which was organized as a Maryland corporation on November 18, 1992. The Munder
Funds Trust ("MFT") is registered under the 1940 Act, as an open-end investment
company, which was organized as a Massachusetts business trust on August 30,
1989. MFI and MFT consist of 20 portfolios (each a "Fund" collectively, the
"Munder Funds"), as follows:
MFI:
EQUITY FUNDS
Munder Multi-Season Growth Fund
Munder Real Estate Equity Investment Fund
Munder Mid-Cap Growth Fund
Munder Value Fund
MONEY MARKET FUND
Munder Money Market Fund
MFT:
EQUITY FUNDS
Munder Accelerating Growth Fund
Munder Small Company Growth Fund
Munder International Equity Fund
Munder Index 500 Fund
Munder Growth & Income Fund
Munder Balanced Fund
INCOME FUNDS
Munder Bond Fund
Munder Intermediate Bond Fund
Munder U.S. Government Income Fund
Munder Michigan Triple Tax-Free Bond Fund
Munder Tax-Free Bond Fund
Munder Tax-Free Intermediate Bond Fund
MONEY MARKET FUNDS
Munder Tax-Free Money Market Fund
Munder U.S. Treasury Money Market Fund
Munder Cash Investment Fund
The Equity Funds (with the exception of the Munder Index 500 Fund) and the
Income Funds offer five classes of shares -- Class A, Class B, Class C, Class K
and Class Y Shares. The Munder Index 500 Fund offers four classes of shares --
Class A, Class B, Class K and Class Y Shares. The Money Market Funds of MFT
offer three classes of shares -- Class A, Class K and Class Y Shares. The Munder
Money Market Fund
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
offers four classes of shares -- Class A, Class B, Class C and Class Y Shares.
Each Fund is classified as a diversified management investment company under the
1940 Act, other than the Munder Tax-Free Intermediate Bond Fund and the Munder
Michigan Triple Tax-Free Bond Fund which are classified as non-diversified due
to their intention to invest their assets, when possible, in municipal
obligations issued by the State of Michigan and its political subdivisions.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to makes estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Funds in the
preparation of their financial statements:
Security Valuation: With respect to the Equity and Income Funds,
securities (including financial futures) traded on a recognized stock exchange
or on the NASDAQ National Market System are valued at the last sale price on the
securities exchange on which such securities are primarily traded or at the last
sale price on the national securities market. Securities for which there were no
transactions are valued at the average of the current bid and asked prices.
Securities traded only on over-the-counter markets are valued on the basis of
closing over-the-counter bid prices. Restricted securities, securities for which
market quotations are not readily available, and other assets are valued at fair
value by the advisor, under the supervision of the Boards of Trustees and
Directors. Portfolio securities primarily traded on the London Stock Exchange
are generally valued at the mid-price between the current bid and asked prices.
Portfolio securities that are primarily traded on foreign securities exchanges,
other than the London Stock Exchange, are generally valued at the preceding
closing values of such securities on their respective exchanges, except when an
occurrence subsequent to the time a value was so established is likely to have
changed such value. In such an event, the fair value of those securities will be
determined through the consideration of other factors by or under the direction
of the Boards of Trustees and Directors. Debt securities with remaining
maturities of 60 days or less at the time of purchase are valued on an amortized
cost basis, which approximates current market value. Debt securities in the
Money Market Funds are also valued on an amortized cost basis, which
approximates current market value. Under this method, securities are valued
initially at cost when purchased (or on the 61st day before maturity).
Thereafter, a constant proportionate amortization of any discount or premium is
recorded until maturity of the security. Regular review and monitoring of the
valuation of securities held by the Money Market Funds is performed pursuant to
procedures established by the Boards of Trustees and Directors. Each Money
Market Fund seek to maintain a net asset value per share of $1.00.
Forward Foreign Currency Contracts: Each Equity Fund may engage in forward
foreign currency contracts in an effort to reduce the level of volatility caused
by changes in foreign currency exchange rates. The Funds may use forward foreign
currency contracts to facilitate transactions in foreign securities and to
manage a Fund's currency exposure. Forward foreign currency contracts are valued
at the exchange rate and are marked-to-market daily. The change in market value
is recorded by the Fund as an unrealized gain or loss. When the contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
limit any potential gain that might result should the value of the currency
increase. In addition, the Fund could be exposed to risks if the counterparties
to the contracts are unable to meet the terms of their contracts.
Foreign Currency: The books and records of the Munder International Equity
Fund are maintained in United States (U.S.) dollars. Foreign currencies,
investments and other assets and liabilities are translated into U.S. dollars at
the exchange rates prevailing at the end of the period. Purchases and sales of
investment securities and items of income and expense are translated on the
respective dates of such transactions. Unrealized gains and losses, not relating
to securities, which result from changes in foreign currency exchange rates have
been included in the unrealized appreciation/(depreciation) of foreign currency
and net other assets. Net realized foreign currency gains and losses resulting
from changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment security transactions, foreign
currency transactions and the difference between the amounts of interest and
dividends recorded on the books of the Fund and the amounts actually received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale trade
date is included in realized gains and losses on investment securities sold.
Futures Contracts: The Munder Index 500 Fund may enter into futures
contracts for the purpose of hedging against changes in the value of the
portfolio securities held and in the value of the securities it intends to
purchase, or in order to maintain liquidity. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the "initial margin." Subsequent payments ("variation margin") are made
or received by the Fund each day, depending on the daily fluctuation of the
value of the contract. The daily changes in the contract are recorded as
unrealized gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed. The net unrealized appreciation/(depreciation) is shown in
the financial statements.
There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
This arrangement results in a fixed rate of return that is not subject to market
fluctuations during the Fund's holding period. The value of the collateral is at
least equal, at all times, to the total amount of the repurchase obligations,
including interest. In the event of counterparty default, the Fund has the right
to use the collateral to satisfy the terms of the repurchase agreement. However,
there could be potential loss to the Fund in the event the Fund is delayed or
prevented from exercising its right to dispose of the collateral securities,
including the risk of a possible decline in the value of the collateral
securities during the period while the Fund seeks to assert its rights. The
Munder Fund's investment adviser, acting under the supervision of the Boards of
Trustees and Directors, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which a Fund enters into
repurchase agreements to evaluate potential risks.
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
Security Transactions and Investment Income: Security transactions are
recorded on the trade date. The cost of investments sold is determined by use of
the specific identification method for both financial reporting and income tax
purposes. Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date, except that certain dividends from foreign
securities are recorded as soon as the Fund is informed of the ex-dividend date.
General expenses of the Munder Funds are allocated to each Fund based upon
relative net assets of each Fund. Operating expenses of each Fund directly
attributable to a class of shares are charged to that class' operations.
Expenses of each Fund not directly attributable to the operations of any class
of shares are prorated among the classes based on the relative average net
assets of each class.
Securities purchased or sold on a when-issued or delayed delivery basis
may be settled a month or more after the trade date. Interest income is not
accrued until settlement date. Each Fund instructs the custodian to segregate
assets in a separate account with a current value at least equal to the amount
of its when-issued purchase commitments.
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid quarterly by the Equity Funds (excluding the Munder
Multi-Season Growth Fund, Munder Mid-Cap Growth Fund, Munder International
Equity Fund and Value Fund for which dividends are declared and paid at least
annually and the Munder Real Estate Equity Investment Fund for which dividends
are declared and paid monthly); declared and paid monthly by the Income Funds;
and declared daily and paid monthly by the Money Market Funds. Each Fund's net
realized capital gains (including net short-term capital gains), if any, are
declared and distributed at least annually. Distributions to shareholders are
recorded on the ex-dividend date.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by a Fund,
timing differences and differing characterization of distributions made by a
Fund as a whole.
As determined at June 30, 1995, permanent differences resulting from
different book and tax accounting for organizational costs, net operating
losses, different book and tax accounting for currency gains and losses and
market discount of certain debt instruments were reclassified to paid-in capital
at year end. These reclassifications had no effect on net investment income, net
assets or net asset value per share.
Federal Income Taxes: Each Fund intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies and to
distribute substantially all of its earnings to its shareholders. Therefore, no
Federal income or excise tax provision is required.
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
2. INVESTMENT ADVISOR, ADMINISTRATOR, CUSTODIAN, TRANSFER AGENT AND OTHER
RELATED PARTY TRANSACTIONS
Munder Capital Management (the "Advisor"), an independent investment
management firm, serves as each Fund's advisor. For its advisory services, the
Advisor is entitled to receive from each Fund a fee, computed daily and payable
monthly, based on the average daily net assets of the respective Fund, at the
following annual rates:
<TABLE>
<CAPTION>
FEES ON ASSETS FEES ON ASSETS FEES ON ASSETS
UP TO BETWEEN $250 AND EXCEEDING
$250 MILLION $500 MILLION $500 MILLION
------------ ------------ ------------
<S> <C> <C> <C>
Munder Index 500 Fund................................. 0.20% 0.12% 0.07%
</TABLE>
<TABLE>
<CAPTION>
FEES ON ASSETS FEES ON ASSETS
UP TO $500 MILLION EXCEEDING $500 MILLION
------------------ ----------------------
<S> <C> <C>
Munder Multi-Season Growth Fund....................... 1.00% 0.75%
</TABLE>
<TABLE>
<CAPTION>
Fees on Average
Daily Net Assets
----------------
<S> <C>
The Income Funds...................................... 0.50%
Munder Accelerating Growth Fund, Munder
Small Company Growth Fund, Munder
International Equity Fund and Munder
Growth & Income Fund................................. 0.75%
Munder Real Estate Equity Investment Fund,
Munder Mid-Cap Growth Fund and
Munder Value Fund................................... 0.74%
Munder Balanced Fund.................................. 0.65%
The Money Market Funds (excluding
Munder Money Market Fund)........................... 0.35%
Munder Money Market Fund.............................. 0.40%
</TABLE>
Prior to October 28, 1995, the Advisor was entitled to receive investment
advisory fees at the following annual rates: 0.74% of the first $500 million of
average daily net assets and 0.50% of daily net assets in excess of $500 million
for The Income Funds; 1.00% of average daily net assets up to $250 million,
0.85% of average daily net assets between $250 million and $500 million, and
0.75% of average daily net assets exceeding $500 million for the Accelerating
Growth, Small Company Growth, International Equity, Growth & Income Fund and
Balanced Fund; and 0.40% of average daily net assets up to $500 million and
0.35% of average daily net assets exceeding $500 million for the Tax-Free Money
Market, U.S. Treasury Money Market and Cash Investment Funds.
The Advisor voluntarily waived all or a portion of its advisory fees
payable by each Fund, for the period ended December 31, 1995, as reflected in
the Statement of Operations. For the period ended December 31,
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
1995, the Advisor reimbursed expenses of $15,000, $14,000 and $14,000 to the
Munder Real Estate Equity Investment Fund, the Munder Mid-Cap Growth Fund and
the Munder Value Fund.
First Data Investor Services Group, Inc. ("First Data"), formerly The
Shareholder Services Group, Inc., (the "Administrator"), serves as the Munder
Funds administrator and assists in all aspects of their administration and
operations. First Data also serves as the Munder Fund's transfer agent and
dividend disbursing agent ("Transfer Agent").
As compensation for its services, the Administrator is entitled to receive
a fee, based on the aggregate average daily net assets of the Funds computed
daily and payable monthly, at an annual rate of 0.12% of the first $2.8 billion
of net assets, plus 0.105% of the next $2.2 billion of net assets, plus 0.10% of
all net assets in excess of $5 billion. As compensation for its services, the
Transfer Agent is entitled to receive a fee, based on the aggregate average
daily net assets of the Funds computed daily and payable monthly, at an annual
rate of 0.02% of the first $2.8 billion of net assets, plus 0.015% of the next
$2.2 billion of net assets, plus 0.01% of net assets in excess of $5 billion.
The Transfer Agent and Administrator are also entitled to reimbursement for
out-of-pocket expenses. The Administrator has entered into a Sub-Administration
Agreement with Funds Distributor, Inc. ("FDI" or the "Distributor") under which
FDI provides certain administrative services with respect to the Funds. The
Administrator pays FDI a fee for these services out of its own resources at no
additional cost to the Funds.
Comerica Bank ("Comerica") provides custodial services to the Funds. As
compensation for its services, Comerica is entitled to receive fees, based on
the aggregate average daily net assets of the Funds computed daily and payable
monthly at an annual rate of 0.03% of the first $100 million of average daily
net assets, plus 0.02% of the next $500 million of net assets, plus 0.01% of net
assets in excess of $600 million. Comerica also receives certain transaction
based fees. Comerica earned $331,402 for its services to the Funds for the
period ended December 31, 1995. Boston Safe Deposit and Trust Company ("Boston
Safe") serves as the custodian of foreign securities for the Munder Multi-Season
Growth Fund, Munder Accelerating Growth Fund, the Munder Small Company Growth
Fund, the Munder Mid-Cap Growth Fund, the Munder International Equity Fund, the
Munder Value Fund, the Munder Bond Fund and the Munder Intermediate Bond Fund.
The Munder Funds pay each Trustee or Director $14,000 per year, consisting
of a $2,500 quarterly retainer for services in such capacity plus $1,000 for
each meeting attended per year, plus out-of-pocket expenses incurred as a Board
member. The Trustees or Directors are also reimbursed for any expenses incurred
by them in connection with their duties as Trustees or Directors. No officer,
director or employee of the Advisor, Comerica, Boston Safe, FDI or First Data
currently receives any compensation from The Munder Funds.
3. SHAREHOLDER DISTRIBUTION AND SERVICE PLANS
FDI serves as the distributor of the Munder Funds shares. For the period
ended December 31, 1995, the Distributor received $75,314, representing
commissions (sales charges) on sales of Class A Shares of the Funds. For the
period ended December 31, 1995, the Distributor received $47,815 in contingent
deferred sales charges from Class B and Class C Shares of the Funds.
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
The Munder Funds have adopted Shareholder Servicing Plans and Distribution
and Service Plans (collectively, the "Plans") pursuant to Rule 12b-1, adopted by
the Securities and Exchange Commission under the 1940 Act, with respect to the
Class A, Class B and Class C Shares. Under the Plans, the Distributor uses the
service fees primarily to pay ongoing trail commissions to securities dealers
and other financial institutions and organizations (collectively, the "Service
Organizations") who provide shareholder services for the Funds. The Plans also
permit payments to be made by the Funds to the Distributor for expenditures
incurred by the Distributor in connection with the distribution of Fund shares
to investors and provision of certain shareholder services (which include but
are not limited to the payment of compensation, including compensation to
Service Organizations to obtain various distribution related services for the
Funds. The Munder Funds have also adopted Shareholder Servicing Plans (the
"Class K Plans") for the Class K Shares of the Funds. Under the Class K Plans,
the Munder Funds are permitted to enter into agreements with institutions that
provide shareholder services to their customers. For the period ended December
31, 1995, the contractual rates, as a percentage of average daily net assets,
under the Shareholder Servicing and Distribution and Servicing Plans are as
follows:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C SHARES CLASS K SHARES
12B-1 FEES 12B-1 FEES 12B-1 FEES SERVICE FEES
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
THE EQUITY FUNDS (EXCLUDING THE
MUNDER INDEX 500 FUND)..................... 0.25% 1.00% 1.00% 0.25%
MUNDER INDEX 500 FUND........................ 0.10% 0.45% N/A 0.25%
THE INCOME FUNDS............................. 0.25% 1.00% 1.00% 0.25%
THE MONEY MARKET FUNDS:
Munder Money Market Fund..................... 0.25% 1.00% 1.00% N/A
Munder Tax-Free Money Market Fund............ 0.25% N/A N/A 0.15%
Munder U.S. Treasury Money
Market Fund................................ 0.25% N/A N/A 0.15%
</TABLE>
<TABLE>
<CAPTION>
CLASS A SHARES CLASS K SHARES
SERVICE FEES SERVICE FEES
------------ ------------
<S> <C> <C>
Munder Cash Investment Fund.................. 0.25% 0.15%
</TABLE>
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
4. SECURITIES TRANSACTIONS
For the period ended December 31, 1995, purchases and sales of securities
other than short-term investments and U.S. Government securities were as
follows:
<TABLE>
<CAPTION>
COST OF PURCHASES PROCEEDS FROM SALES
----------------- -------------------
<S> <C> <C>
Munder Multi-Season Growth Fund................................. $109,758,974 $ 88,347,709
Munder Real Estate Equity Investment Fund....................... 12,634,528 735,134
Munder Accelerating Growth Fund................................. 191,955,843 251,857,596
Munder Small Company Growth Fund................................ 75,065,012 72,326,137
Munder Mid-Cap Growth Fund...................................... 27,694,168 9,489,713
Munder International Equity Fund................................ 66,532,995 39,331,213
Munder Index 500 Fund........................................... 24,706,012 10,277,872
Munder Growth & Income Fund..................................... 48,632,976 22,413,140
Munder Value Fund............................................... 45,082,600 19,927,467
Munder Balanced Fund............................................ 44,466,596 44,407,876
Munder Bond Fund................................................ 327,473,517 307,654,132
Munder Intermediate Bond Fund................................... 477,564,164 655,493,513
Munder U.S. Government Income Fund.............................. 11,195,443 15,736,478
Munder Michigan Triple Tax-Free Bond Fund....................... 4,727,601 5,983,223
Munder Tax-Free Bond Fund....................................... 32,531,356 61,252,442
Munder Tax-Free Intermediate Bond Fund.......................... 25,728,203 28,530,822
</TABLE>
For the period ended December 31, 1995, purchases and sales of U.S.
Government securities, excluding short-term investments were as follows:
<TABLE>
<CAPTION>
COST OF PURCHASES PROCEEDS FROM SALES
<S> <C> <C>
Munder Balanced Fund............................................ $ 15,665,328 $ 17,289,080
Munder Bond Fund................................................ 181,949,665 195,053,918
Munder Intermediate Bond Fund................................... 704,418,903 502,680,062
Munder U.S. Government Income Fund.............................. 88,915,530 96,870,056
</TABLE>
At December 31, 1995, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over tax cost and aggregate
gross unrealized depreciation for all securities for which there was an excess
of tax cost over value for Federal income tax purposes was as follows:
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------ ------------
<S> <C> <C>
Munder Multi-Season Growth Fund................................. $62,493,147 $2,301,400
Munder Real Estate Equity Investment Fund....................... 1,310,755 37,648
Munder Accelerating Growth Fund................................. 39,128,766 5,019,735
Munder Small Company Growth Fund................................ 41,559,401 3,588,760
Munder Mid-Cap Growth Fund...................................... 1,486,667 1,194,313
Munder International Equity Fund................................ 33,606,852 639,029
Munder Index 500 Fund........................................... 36,945,903 1,588,113
Munder Growth & Income Fund..................................... 31,593,765 913,520
Munder Value Fund............................................... 2,109,836 613,495
Munder Balanced Fund............................................ 6,593,893 343,068
Munder Bond Fund................................................ 7,247,775 358,107
Munder Intermediate Bond Fund................................... 6,014,962 1,776,463
Munder U.S. Government Income Fund.............................. 7,929,958 389,058
Munder Michigan Triple Tax-Free Bond Fund....................... 989,911 55,708
Munder Tax-Free Bond Fund....................................... 15,285,111 69,584
Munder Tax-Free Intermediate Bond Fund.......................... 14,424,217 67,580
</TABLE>
5. CONCENTRATION OF CREDIT
The Munder Tax-Free Intermediate Bond Fund and Munder Michigan Triple
Tax-Free Bond Fund primarily invest in debt obligations issued by the State of
Michigan and local governments in the State of Michigan, its political
subdivisions, agencies and public authorities to obtain funds for various public
purposes. The two Funds are more susceptible to factors adversely affecting
issuers of Michigan municipal securities than is a municipal bond fund that is
not concentrated in these issuers to the same extent. Economic changes affecting
the state and certain of its public bodies and municipalities may affect the
ability of issuers within the state to pay interest on or repay principal of
municipal obligations held by these Funds. The Munder Real Estate Equity
Investment Fund primarily invests in equity securities of United States
companies which are principally engaged in the real estate industry or which own
significant real estate assets, and accordingly, is more susceptible to factors
adversely affecting the U.S. real estate industry.
6. FOREIGN SECURITIES
The Munder International Equity Fund invests primarily in foreign
securities. Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and the U.S. government securities. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of U.S. companies and the U.S. government.
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
7. ORGANIZATIONAL COSTS
Expenses incurred in connection with the organization of the Funds,
including the fees and expenses of registering and qualifying its shares for
distribution under Federal securities regulations, are being amortized on a
straight-line basis over a period of 5 years from commencement of operations.
8. CAPITAL LOSS CARRYFORWARDS
As determined at June 30, 1995, the following Funds had available for
Federal income tax purposes, unused capital losses as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRATION
- ---- ------ ----------
<S> <C> <C>
Munder Multi-Season Growth Fund............................. $2,588,502 2003
Munder International Equity Fund............................ 406,805 2002
2,149,275 2003
Munder Balanced Fund........................................ 172,583 2002
1,783,000 2003
Munder Bond Fund............................................ 470,092 2002
10,329,288 2003
Munder Intermediate Bond Fund............................... 15,284,729 2003
Munder U.S. Government Income Fund.......................... 946,213 2003
Munder Michigan Triple Tax-Free Bond Fund................... 301,387 2003
Munder Tax-Free Bond Fund................................... 559,311 2003
Munder Tax-Free Intermediate Bond Fund...................... 1,305,925 2003
Munder Tax-Free Money Market Fund........................... 14,500 1999
20,091 2000
57,257 2001
39,684 2002
27,379 2003
Munder Cash Investment Fund................................. 556 1996
4,895 2000
1,650 2001
</TABLE>
9. REORGANIZATION
On June 23, 1995, the Munder Multi-Season Growth Fund (Acquiring Fund)
acquired the assets and certain liabilities of the Ambassador Established
Company Growth Fund (Acquired Fund), in exchange for shares of the Acquiring
Fund, pursuant to a plan of tax-free reorganization approved by the Acquired
Fund's shareholders on June 21, 1995. Total shares issued by the Acquiring Fund,
the value of the shares issued by the Acquiring Fund, the total net assets of
the Acquired Fund and the Acquiring Fund and the unrealized appreciation
included in the Acquired Fund's total net assets on the acquiring date were as
follows:
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE OF TOTAL NET TOTAL NET ACQUIRED
ISSUED BY SHARES ISSUED ASSETS OF ASSETS OF FUND
ACQUIRING BY ACQUIRING ACQUIRED ACQUIRING UNREALIZED
ACQUIRING FUND ACQUIRED FUND FUND FUND FUND* FUND APPRECIATION
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Munder Multi- Ambassador
Season Growth Established
Fund Company Growth
Fund 15,524,720 $189,282,737 $189,260,209 $71,358,360 $27,807,281
</TABLE>
- ----------------
* The value of the net assets of the Acquiring Fund immediately after the
acquisition was $260,618,569.
