THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated June 27, 1997
to Prospectus dated October 28, 1996
Class A, B and C Shares of:
Munder Accelerating Growth Fund, Munder Balanced Fund, Munder Equity Selection
Fund, Munder Growth &Income Fund, Munder Index 500 Fund, Munder International
Equity Fund, Munder Micro-Cap Equity Fund,Munder Mid-Cap Growth Fund, Munder
Multi-Season Growth Fund, Munder Real Estate Equity Investment Fund, Munder
Small-Cap Value Fund, Munder Small Company Growth Fund and Munder Value
Fund (the "Funds")
FINANCIAL HIGHLIGHTS
The following tables of "Financial Highlights" relating to Class A, B
and C Shares of the Munder Micro-Cap Equity Fund and the Munder Small-Cap Value
Fund (each a, "Fund") supplements information contained in the Prospectus dated
October 28, 1996 and is derived from each such Fund's unaudited Financial
Statements dated April 30, 1997.
Micro-Cap Equity Fund
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Class A Shares Class B Shares Class C Shares
Period Ended Period Ended Period Ended
4/30/97(a,e) 4/30/97(a,e) 4/30/97(a,e)
(Unaudited) (Unaudited) (Unaudited)
Net asset value, beginning of period................. $ 10.00 $ 11.00 $ 10.13
--------------- --------------- -----------
Income from investment operations:
Net investment loss.................................. (0.02) (0.02) (0.02)
Net realized and unrealized loss
on investments.................................. (0.21) (1.22) (0.34)
------------------ ------------------ ---------------
Total from investment operations..................... (0.23) (1.24) (0.36)
------------------ ------------------ ---------------
Less distributions:
Dividends from net investment income................. --- --- ---
------------------ ------------------ ------------
Total distributions.................................. --- --- ---
------------------ ------------------ ------------
Net asset value, end of period....................... $ 9.77 $ 9.76 $ 9.77
=============== =============== ==========
Total return (b)..................................... (2.30)% (11.27)% (3.55)%
=============== ============== =============
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)................. $77 $129 $9
Ratio of operating expenses to average net assets.... 1.50% (c) 2.25% (c) 2.25% (c)
Ratio of net investment loss to
average net assets............................. (0.84)% (c) (1.59)% (c) (1.59)% (c)
Portfolio turnover rate.............................. 59% 59% 59%
Ratio of operating expenses to average net
assets without expenses reimbursed by
investment advisor.............................. 13.14% (c) 13.89% (c) 13.89% (c)
Average commission rate (d).......................... $0.0562 $0.0562 $0.0562
- -------------------------------------
<FN>
(a) Munder Micro-Cap Equity Fund Class A Shares, Class B Shares and Class C
Shares commenced operations on December 26, 1996, February 24, 1997 and
March 31, 1997, respectively.
(b) Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charges.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by the Fund.
(e) Per share numbers have been calculated using the average shares method, which more appropriately
presents per share data for the period since the use of the undistributed
method did not accord with results of operations.
</FN>
</TABLE>
<PAGE>
Small-Cap Value Fund
--------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Class A Shares Class B Shares Class C Shares
Period Ended Period Ended Period Ended
4/30/97(a) 4/30/97(a) 4/30/97(a)
(Unaudited) (Unaudited) (Unaudited)
Net asset value, beginning of period................. $ 10.22 $ 10.76 $ 10.22
--------------- --------------- -----------
Income from investment operations:
Net investment income................................ 0.00 (e) 0.00 (e) 0.00 (e)
Net realized and unrealized gain/(loss)
on investments.................................. 0.31 (0.24) 0.30
--------- --------- ------
Total from investment operations..................... 0.31 (0.24) 0.30
--------- --------- -------------
Less distributions:
Dividends from net investment income................. --- --- ---
--------- --------- ---
Total distributions.................................. --- --- ---
--------- --------- ---
Net asset value, end of period....................... $10.53 $10.52 $10.52
======== ======== =====
Total return (b)..................................... 3.03% (2.23)% 2.94%
========= ========= =======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)................. $665 $124 $25
Ratio of operating expenses to average net assets.... 1.25% (c) 2.00% (c) 2.00% (c)
Ratio of net investment income/(loss) to
average net assets............................. 0.60% (c) (0.15)% (c) (0.15)% (c)
Portfolio turnover rate.............................. 21% 21% 21%
Ratio of operating expenses to average net
assets without expenses reimbursed by
investment advisor.............................. 2.35% (c) 3.10% (c) 3.10% (c)
Average commission rate (d).......................... $0.0364 $0.0364 $0.0364
- -------------------------------------
<FN>
(a) Munder Small-Cap Value Fund Class A Shares, Class B Shares and Class C
Shares commenced operations on January 10, 1997, February 11, 1997 and
January 13, 1997, respectively.
(b) Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charges.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by the Fund.
(e) Amount represents less than $0.01 per share.
</FN>
</TABLE>
<PAGE>
MINIMUM INITIAL INVESTMENT REDUCED
Effective as of May 16, 1997, the minimum initial investment for the Funds had
been reduced to $500 for Class A, B and C Shares of each of the Funds.
SALES CHARGE WAIVERS--CLASS A SHARES
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
The "How to Purchase Shares--Sales Charge Waivers--Class A Shares" section of
the Prospectus is hereby deleted in its entirety and supplemented as follows and
the first three paragraphs under "How to Purchase Shares--Qualified Employer
Sponsored Retirement Plans" in the Prospectus are hereby deleted in their
entirety and supplemented as follows:
Sales Charge Waivers--Class A Shares
Upon notice to the Funds' transfer agent at the time of purchase, the initial
sales charge will be waived on sales of Class A Shares to the following types of
purchasers: (1) individuals with an investment account or relationship with
Munder Capital Management (the "Advisor"); (2) full-time employees and retired
employees of the Advisor, employees of the Funds' administrator, distributor and
custodian, and immediate family members of such persons; (3) registered
broker-dealers that have entered into selling agreements with the Funds'
distributor (the "Distributor"), for their own accounts or for retirement plans
for their employees or sold to registered representatives for full-time
employees (and their families) that certify to the Distributor at the time of
purchase that such purchase is for their own account (or for the benefit of
their families); (4) certain qualified employee benefit plans as defined below;
(5) financial institutions, financial planner or employee benefit plan
consultants acting for the account of their clients; and (6) employer
sponsored retirement plans which are administered by Universal Pensions,
Inc. ("UPI Plans").
Qualified Employer Sponsored Retirement Plans
Class A Shares (other than the Index 500 Fund)
Upon notice to the Funds' transfer agent at the time of purchase, the initial
sales charge will be waived on purchases by employer sponsored retirement plans
that are qualified under Section 401(a) of the Code including: 401(k) plans,
defined benefit pension plans, profit-sharing pension plans, money-purchase
pension plans, and Section 457 deferred compensation plans and Section 403(b)
plans (each, a "Qualified Employee Benefit Plan") that (1) invest $1,000,000 or
more in Class A Shares of investment portfolios offered by The Munder Funds
Trust (the "Company") (other than the Index 500 Fund), The Munder Funds, Inc.
("Munder") or The Munder Framlington Funds Trust ("Munder Framlington") or (2)
have at least 75 eligible plan participants. In addition, the contingent
deferred sales charge ("CDSC") of 1% imposed on certain redemptions within one
year of purchase will be waived for Qualified Employee Benefit Plan purchases
that meet the above criteria. A 1% commission will be paid by the Distributor to
dealers and other entities (as permitted by applicable Federal and state law)
who initiate and are responsible for Qualified Employee Benefit Plan purchases
that meet the above criteria. For purposes of the foregoing sales charge waiver,
Simplified Employee Pension Plans ("SEPs"), Individual Retirement Accounts
("IRAs") and UPI Plans are not considered to be Qualified
Employee Benefit Plans.
Upon notice to the Funds' transfer agent at the time of purchase, the initial
sales charge on Class A Shares will be waived on purchases by UPI Plans. In
addition, the CDSC of 1% imposed on certain redemptions within one year of
purchase will be waived for UPI Plans. A 1% commission will be paid by the
Distributor to dealers and other entities (as permitted by applicable Federal
and state law) who initiate and are responsible for UPI Plan purchases.
Class A Shares of the Index 500 Fund
The initial sales charge will be waived for all investments by Qualified
Employee Benefit Plans and UPI Plans in Class A Shares of the Index 500 Fund. In
addition, the CDSC of up to .20% imposed on certain redemptions within one year
of purchase will be waived for Qualified Employee Benefit Plan and UPI Plan
purchases of Class A Shares of the Index 500 Fund. The Distributor will pay the
following commissions to dealers and other entities (as permitted by applicable
Federal and state law) who initiate and are responsible for Qualified Employee
Benefit Plan and UPI Plan purchases of Class A Shares of the Index 500 Fund:
Discount to Dealer or Entity
Amount of Purchase as a Percentage of Offering Price
Less than $500,000................................................... 0.25%
$500,000 but less than $1,000,000.................................... 0.20%
$1,000,000 but less than $3,000,000.................................. 0.15%
$3,000,000 or more................................................... 0.10%
Sales charges will be waived for individuals who purchase Class A Shares with
the proceeds of distributions from qualified retirement plans for which the
Advisor serves as investment advisor. Sales charges also will be waived for
individuals who purchase Class A Shares with the proceeds of redemptions of
Class Y Shares of the Funds of the Company, Munder or Munder Framlington if the
proceeds are invested within 60 days of redemption. See "Other
Information--Description of Shares."
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER SMALL-CAP VALUE FUND AND MUNDER
SMALL COMPANY GROWTH FUND
Edward Eberle, Value Portfolio Manager of the Advisor, has been co-manager
of the Value Fund since October, 1996. Mr. Eberle has been appointed co-manager
of the Small-Cap Value Fund. Prior to being appointed co-manager, Mr. Eberle
acted as the primary analyst for the Funds, assisting the manager with portfolio
decisions. He is also a member of the Advisor's asset allocation team. Prior to
joining the Advisor in 1995, Mr. Eberle served as Executive Vice President and
Portfolio Manager for Westpointe Financial Corporation and as a member of the
Board of Directors for Westpointe Capital Management and Dart Investors Bermuda
Limited. Mr. Eberle received a B.A. in Finance from Michigan State University.
Michael P. Gura, CFA, Senior Portfolio Manager of the Advisor, has been
appointed co-manager of the Small Company Growth Fund. Prior to joining the
Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
Woodbridge Capital Management, Inc. From 1989-1994, Mr. Gura was an investment
officer at Manufacturers National Bank Trust Investment Department where he was
responsible for equity research covering the retailing, apparel, specialty
chemical and environmental industries. From 1986-1989, Mr. Gura served as a
Financial/Tax Planning analyst for Manufacturers National Bank. Mr. Gura
received an M.S. in Finance with Distinction and a B.B.A. from Walsh College. He
is a member of the Financial Analyst Society of Detroit and is a Certified
Financial Planner.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER INDEX 500 FUND
Kenneth A. Schluchter III, has been appointed co-manager of the Index 500
Fund. Prior to joining the Advisor, Mr. Schluchter was a Systems Developer and
Data Analyst for Compuware Incorporated (1993-1995) and a Business Analyst for
Central Transport Incorporated (1989-1993). Mr. Schluchter received a B.S. and
an M.B.A. from the University of Michigan.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR THE MUNDER ACCELERATING GROWTH
FUND AND MUNDER MID-CAP GROWTH FUND
The Munder Accelerating Growth Fund and Munder Mid-Cap Growth Fund are
managed by a committee of professional portfolio managers of the Advisor.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated June 27, 1997
to Prospectus Dated October 28, 1996
Class K Shares of:
Munder Accelerating Growth Fund, Munder Balanced Fund, Munder Equity Selection
Fund, Munder Growth & Income Fund, Munder Index 500 Fund, Munder
International Equity Fund, Munder Micro-Cap Equity Fund, Munder Mid-Cap
Growth Fund, Munder Multi-Season Growth Fund, Munder Real Estate Equity
Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Bond Fund, Munder Intermediate Bond Fund,
Munder International 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 Cash Investment Fund, Munder
Tax-Free Money Market Fund and Munder U.S. Treasury Money Market Fund
FINANCIAL HIGHLIGHTS
The following table of "Financial Highlights" relating to Class K
Shares of the Munder Micro-Cap Equity Fund and Munder Small-Cap Value Fund
supplements information contained in the Prospectus dated October 28, 1996 and
is derived from each such Fund's unaudited Financial Statements dated April 30,
1997.
Class K Shares
Period Ended
4/30/97(a)
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Munder Micro-Cap Munder Small-Cap
Equity Fund(f) Value Fund
Net asset value, beginning of period.......................... $10.11 $10.08
-------- -----
Income from investment operations:
Net investment income/(loss).................................. (0.02) 0.00 (e)
Net realized and unrealized gain/(loss) on investments........ (0.32) 0.45
--------- ------
Total from investment operations.............................. (0.34) 0.45
--------- ------
Less distributions:
Dividends from net investment income.......................... --- ---
--------- ---
Total distributions........................................... --- ---
--------- ---
Net asset value, end of period................................ $ 9.77 $10.53
======== =====
Total return (b).............................................. (3.36)% 4.46%
======== =======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's).......................... $113 $33,996
Ratio of operating expenses to average net assets............. 1.50% (c) 1.25% (c)
Ratio of net investment income/(loss) to average net assets... (0.84)% (c) 0.60% (c)
Portfolio turnover rate....................................... 59% 21%
Ratio of operating expenses to average net assets without
expenses reimbursed by investment advisor.................. 13.14% (c) 2.35% (c)
Average commission rate (d)................................... .........$0.0562 ......... $0.0364
- -------------------------------------
<FN>
(a) Munder Micro-Cap Equity Fund and Munder Small-Cap Value Fund Class K
Shares commenced operations on December 31, 1996.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold
by the Fund.
(e) Amount represents less than $0.01 per share.
(f) Per share numbers have been calculated using the average shares method,
which more appropriately presents per share data for the period since the
use of the undistributed net investment income method did not accord with
results of operations.
</FN>
</TABLE>
MANAGEMENT
Performance Information
Set forth below is certain performance information regarding the Munder
Accelerating Growth Fund, Munder Small Company Growth Fund, Munder International
Equity Fund, Munder Index 500 Fund, Munder Bond Fund, Munder U.S. Government
Income Fund, Munder Intermediate Bond Fund and Munder Tax-Free Bond Fund (the
"Funds") provided by Munder Capital Management (the "Advisor") or Comerica Bank
("Comerica") each of which was created through the conversion of a predecessor
common or collective trust fund managed by the Advisor or Comerica and which had
investment objectives and policies similar to those of the corresponding Funds.
See in the prospectus "Investment Objectives and Polices" and "Portfolio
Instruments and Practices and Associated Risk Factors". Immediately prior to and
following the conversion, the same individual at the Advisor or Comerica managed
a Fund as both a common or collective trust fund and as a mutual fund.
The table for each Fund includes the rates of average annual total
return achieved on the Fund's assets when managed as a mutual fund and the rates
of average annual return achieved on its assets when managed as a common or
collective trust fund prior to the conversion of that common or collective fund
into the current mutual fund. The performance information assumes the
reinvestment of net income and capital gain distributions. The common or
collective fund returns are calculated by assuming that the same fees and
expenses currently applicable to a Fund had also applied to the corresponding
common or collective trust fund prior to its conversion to a mutual fund.
Past performance of the Funds is not an indication of future results.
The quoted performance data below includes the performance of each respective
common or collective trust fund for periods before the corresponding mutual
fund's registration statement became effective. The common and collective trust
funds were not registered under the Investment Company Act of 1940 (the "1940
Act") and therefore were not subject to certain investment restrictions that are
imposed by the 1940 Act. If the common and collective trust funds had been
registered under the 1940 Act, the common and collective trust funds'
performance may have been adversely affected.
<TABLE>
<CAPTION>
<S> <C> <C>
Munder Accelerating
Period Ended Growth Fund S&P 500
December 31, 1996 (Class K)* Index**
----------------- --------- -----
1 Year...................................... 12.85% 22.96%
3 Years..................................... 9.14% 19.67%
5 Years..................................... 10.85% 15.22%
Inception on January 1, 1990................ 12.10% 14.40%
<FN>
* Converted from collective trust fund to mutual fund on November 23, 1992
** Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index")
performance shows total return in U.S. dollars but does not reflect the
deduction of fees, expenses and taxes. Source: Lipper Analytical Services, Inc.
</FN>
</TABLE>
Munder Small Company
<TABLE>
<CAPTION>
<S> <C> <C>
Period Ended Growth Fund Russell 2000
December 31, 1996 (Class K)* Index**
----------------- --------- -----
1 Year...................................... 36.89% 16.49%
3 Years..................................... 19.96% 13.68%
5 Years..................................... 18.07% 15.64%
10 Years.................................... 16.70% 12.41%
Inception on December 31, 1982.............. 15.03% 12.71%
* Converted from collective trust fund to mutual fund on November 23, 1992
** Russell 2000 Index performance shows total return in U.S. dollars but
does not reflect the deduction of fees, expenses and taxes. Source:
Lipper Analytical Services, Inc.
Munder International
Period Ended Equity Fund FT/S&P Actuaries
December 31, 1996 (Class K)* World Index ex U.S.**
----------------- --------- -------------------
1 Year...................................... 10.03% 6.48%
3 Years..................................... 4.60% 8.42%
5 Years..................................... 8.91% 7.93%
Inception on September 30, 1990............. 10.14% 10.31%
* .Converted from collective trust fund to mutual fund on November 23, 1992
** FT/S&P Actuaries World Index ex. U.S. performance shows total return in U.S. dollars but does not
reflect the deduction of fees, expenses and taxes. Source: Ibbotson Associates, Inc.
Munder Index
Period Ended 500 Fund S&P 500
December 31, 1996 (Class K)* Index**
----------------- --------- -----
1 Year...................................... 22.15% 22.96%
3 Years..................................... 19.04% 19.67%
5 Years..................................... 14.64% 15.22%
Inception on January 27, 1988............... 15.26% 16.08%
.........
*........Converted from collective trust fund to mutual fund on December 7, 1992
** S&P 500 Index performance shows total return in U.S. dollars but does not reflect the deduction of
fees, expenses and taxes. Source: Lipper Analytical Services, Inc.
<PAGE>
Munder Lehman Brothers
Period Ended Bond Fund Gov't/Corp. Bond
December 31, 1996 (Class K)* Index**
----------------- --------- -----
1 Year..................................... 2.47% 2.90%
3 Years.................................... 4.85% 5.79%
5 Years.................................... 5.28% 7.18%
10 Years................................... 7.05% 8.38%
.........
*........Converted from collective trust fund to mutual fund on November 23, 1992
** Lehman Brothers Government/Corporate Bond Index performance shows total return in U.S. dollars but does
not reflect the deduction of fees, expenses and taxes. Source: Lipper Analytical Services, Inc.
Munder U.S. Lehman Brothers
Period Ended Government Income Fund Gov't/Corp. Bond
December 31, 1996 (Class K)* Index**
----------------- --------- -----
1 Year...................................... 2.88% 2.90%
3 Years.................................... 4.18% 5.79%
5 Years.................................... 6.06% 7.18%
10 Years................................... 7.22% 8.38%
.........
*........Converted from common trust fund to mutual fund on July 5, 1994
** Lehman Brothers Government/Corporate Bond Index performance shows total return in U.S. dollars but does
not reflect the deduction of fees, expenses and taxes. Source: Lipper Analytical Services, Inc.
Munder Intermediate Lehman Brothers
Period Ended Bond Fund Intermediate Gov't/Corp.
December 31, 1996 (Class K)* Bond Index**
----------------- --------- ----------
1 Year...................................... 2.88% 4.05%
3 Years..................................... 4.24% 5.58%
5 Years..................................... 5.46% 6.53%
10 Years.................................... 6.80% 7.91%
Inception on March 31, 1982................. 8.97% 10.47%
.........
*........Converted from collective trust fund to mutual fund on November 20, 1992
** Lehman Brothers Intermediate Government/Corporate Bond Index performance shows total return in U.S.
dollars but does not reflect the deduction of fees, expenses and taxes. Source: Lipper Analytical
Services, Inc.
<PAGE>
Munder Tax-Free
Period Ended Bond Fund Lehman 15-Year
December 31, 1996 (Class K)* Muni Bond Index**
----------------- --------- ---------------
1 Year...................................... 2.13% 4.65%
3 Years..................................... 4.01% 5.44%
5 Years..................................... 6.42% 8.05%
10 Years.................................... 6.31% N/A
* Converted from common trust fund to mutual fund on July 5, 1994
** Lehman 15-Year Municipal Bond Index performance shows total return in U.S. dollars but does not reflect
the deduction of fees, expenses and taxes. Source: Lipper Analytical Services, Inc.
</TABLE>
Indices
The S&P 500 Index is an unmanaged index of common stock prices,
including reinvestment of dividends.
The Russell 2000 Index is a capitalization weighted total return index
which is comprised of 2,000 of the smallest capitalized U.S. domiciled companies
whose stock is traded in the United States on the New York Stock Exchange,
American Stock Exchange and the NASDAQ.
The FT/S&P Actuaries World Index ex U.S. is an unmanaged index used to
portray global equity markets excluding the U.S. The Index is weighted based on
the market capitalization of those stocks selected to represent each country and
includes gross reinvestment of dividends.
The Lehman Brothers Government/Corporate Bond Index is a weighted
composite of (i) Lehman Brothers Government Bond Index, which is comprised of
all publicly issued, non-convertible debt of the U.S. Government or any agency
thereof, quasi-federal corporations, and corporate debt guaranteed by the U.S.
Government and (ii) Lehman Brothers Corporate Bond Index, which is comprised of
all public fixed-rate, non-convertible investment-grade domestic corporate debt,
excluding collateralized mortgage obligations.
The Lehman Brothers Intermediate Government/Corporate Bond Index is a
weighted composite of (i) Lehman Brothers Intermediate Government Bond Index,
which is comprised of all publicly issued, non-convertible debt of the U.S.
Government or any agency thereof, quasi-Federal corporations and corporate debt
guaranteed by the U.S. Government with a maturity of between one and ten years
and (ii) Lehman Brothers Corporate Bond Index.
The Lehman 15-Year Municipal Bond Index is a performance benchmark for
the long-term investment-grade tax-exempt bond market.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER SMALL-CAP VALUE FUND
AND MUNDER SMALL COMPANY GROWTH FUND
Edward Eberle, Portfolio Manager of the Advisor, has been co-manager of
the Value Fund since October, 1996. Mr. Eberle has been appointed co-manager of
the Small-Cap Value Fund. Prior to being appointed co-manager, Mr. Eberle acted
as the primary analyst for the Funds, assisting the manger with portfolio
decisions. He is also a member of the Advisor's asset allocation team. Prior to
joining the Advisor in 1995, Mr. Eberle served as Executive Vice President and
Portfolio Manager for Westpointe Financial Corporation and as a member of the
Board of Directors for Westpointe Capital Management and Dart Investors Bermuda
Limited. Mr.
Eberle received a B.A. in Finance from Michigan State University.
Michael P. Gura, CFA, Senior Portfolio Manager of the Advisor, has been
appointed co-manager of the Small Company Growth Fund. Prior to joining the
Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
Woodbridge Capital Management, Inc. From 1989-1994, Mr. Gura was an investment
officer at Manufacturers National Bank Trust Investment Department where he was
responsible for equity research covering the retailing, apparel, specialty
chemical and environmental industries. From 1986-1989, Mr. Gura served as a
Financial/Tax Planning analyst for Manufacturers National Bank. Mr. Gura
received an M.S. in Finance with Distinction and a B.B.A. from Walsh College, is
a member of the Financial Analyst Society of Detroit and a Certified Financial
Planner.
PORTFOLIO INSTRUMENTS AND PRACTICES AND ASSOCIATED RISK FACTORS
.........The Munder Bond Fund, Munder International Bond Fund, Munder U.S.
Government Income Fund, Munder Michigan Triple Tax-Free Bond Fund, Munder
Tax-Free Bond Fund, and Munder Tax-Free Intermediate Bond Fund (each a
"Fixed-Income Fund") may invest in preferred stock. Preferred stock ranks senior
to common stock in the capital structure of an issuer and in the payment of
dividends. Consequently, preferred stock may entail less risk than common stock.
Some preferred stock in which the Fixed-Income Funds invest is convertible into
common stock. Convertible preferred stock may be converted either at a stated
price or rate within a specified period of time into a specified number of
shares of common stock. By investing in convertible preferred stock, a
Fixed-Income Fund seeks the opportunity, through the conversion feature, to
participate in the capital appreciation of the common stock into which the
securities are convertible, while earning higher current income than is
available from the common stock. Convertible preferred stocks entitle the holder
to receive the dividend paid on preferred stock until the convertible preferred
stocks mature or are redeemed, converted or exchanged. Prior to conversion,
convertible preferred stocks have characteristics similar to ordinary debt
securities in that they normally provide a stable stream of income with
generally higher yields than those of common stock of the same or similar
issuers. In evaluating a convertible preferred stock, to the extent consistent
with a Fixed-Income Fund's investment objective, the Advisor places emphasis on
the attractiveness of the underlying common stock and the potential for capital
appreciation through conversion.
CHANGE IN DIVIDEND DETERMINATION TIME WITH RESPECT TO MUNDER CASH INVESTMENT
FUND AND MUNDER U.S. TREASURY MONEY MARKET FUND (THE "MONEY MARKET FUNDS")
.........Shares of the Funds are sold at net asset value per share next
determined after a purchase order is received and becomes effective. Purchase
orders by an institution for shares in the Money Market Funds become effective
when the purchase order is received, together with payment, by First Data
Investor Services Group, Inc. (the "Transfer Agent") by 4:00 p.m. (Eastern time)
on any day on which the New York Stock Exchange is open for business. A purchase
order received by the Transfer Agent after such time will not be accepted;
notice thereof will be given to the institution placing the order, and any funds
received will be returned promptly to the sending institution.
Effective January 2, 1997, shareholders of the Money Market Funds whose purchase
orders are received and become effective by 2:45 p.m. (Eastern Time) receive
dividends for that day. Shareholders whose redemption orders have been received
by 2:45 p.m. (Eastern Time) will not receive dividends for that day, while
shareholders whose redemption orders are received after 2:45 p.m. (Eastern Time)
will receive that day's dividends.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER MICHIGAN TRIPLE TAX-FREE BOND FUND,
MUNDER TAX-FREE BOND FUND, AND MUNDER TAX-FREE INTERMEDIATE BOND FUND
.........Talmadge D. Gunn, Vice President and Director of Tax-Exempt
Trading of the Advisor since 1993, currently manages the Michigan Triple
Tax-Free Bond Fund, Tax-Free Bond Fund and Tax-Free Intermediate Bond Fund. Mr.
Gunn is responsible for managing fixed income portfolios and overseeing the
trading of tax-exempt fixed income securities for the Advisor. Prior to joining
MCM, he was employed by Comerica Bank as Assistant Vice President and Securities
Trader (1985-1993) and Senior Investment Analyst for the Fixed Income Division
(1984-1985).
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER INDEX 500 FUND
.........Kenneth A. Schluchter III, has been appointed co-manager of the
Index 500 Fund. Prior to joining the Advisor, Mr. Schluchter was a Systems
Developer and Data Analyst for Compuware Incorporated (1993-1995) and a Business
Analyst for Central Transport Incorporated (1989-1993). Mr. Schluchter received
a B.S. and an M.B.A. from the University of Michigan.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR THE MUNDER ACCELERATING GROWTH
FUND AND MUNDER MID-CAP GROWTH FUND
.........The Munder Accelerating Growth Fund and Munder Mid-Cap Growth Fund
are managed by a committee of professional portfolio managers of the Advisor.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated June 27, 1997
to Prospectus Dated October 28, 1996
Class Y Shares of:
Munder Accelerating Growth Fund, Munder Balanced Fund, Munder Equity Selection
Fund, Munder Growth & Income Fund, Munder Index 500 Fund, Munder
International Equity Fund, Munder Micro-Cap Equity Fund, Munder Mid-Cap
Growth Fund, Munder Multi-Season Growth Fund, Munder Real Estate Equity
Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Bond Fund, Munder Intermediate Bond Fund,
Munder International 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 Cash Investment Fund, Munder Money
Market Fund, Munder Tax-Free Money Market Fund and Munder U.S. Treasury
Money Market Fund
FINANCIAL HIGHLIGHTS
The following table of "Financial Highlights" relating to Class Y
Shares of Munder Micro-Cap Equity Fund and Munder Small-Cap Value Fund
supplements information contained in the Prospectus dated October 28, 1996 and
is derived from each such Fund's unaudited Financial Statements dated April 30,
1997.
Class Y Shares
Period Ended
4/30/97(a)
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Munder Micro-Cap Munder Small-Cap
Equity Fund(f) Value Fund
Net asset value, beginning of period.......................... $10.00 $10.00
-------- -----
Income from investment operations:
Net investment income/(loss).................................. (0.01) 0.01
Net realized and unrealized gain/(loss) on investments........ (0.22) 0.52
--------- ------
Total from investment operations.............................. (0.23) 0.53
--------- ------
Less distributions:
Dividends from net investment income.......................... --- ---
--------- ---
Total distributions........................................... --- ---
--------- ---
Net asset value, end of period................................ $ 9.77 $10.53
======== =====
Total return (b).............................................. (2.30)% 5.30%
========= =======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's).......................... $1,045 $11,773
Ratio of operating expenses to average net assets............. 1.25% (c) 1.00% (c)
Ratio of net investment income/(loss) to average net assets... (0.59%) (c) 0.85% (c)
Portfolio turnover rate....................................... 59% 21%
Ratio of operating expenses to average net assets without
expenses reimbursed by investment advisor.................. 12.89% (c) 2.10% (c)
Average commission rate (d)................................... $0.0562 $0.0364
- -------------------------------------
<FN>
(a) Munder Micro-Cap Equity Fund and Munder Small-Cap Value Fund Class Y
Shares commenced operations on December 26, 1996.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by the Fund.
(e) Amount represents less than $0.01 per share.
(f) Per share numbers have been calculated using the average shares method,
which more appropriately presents per share data for the period since the
use of the undistributed net investment income method did not accord with
results of operations.
</FN>
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
The following table of "Financial Highlights" relating to Class Y
Shares of the Munder International Bond Fund (the "Fund") supplements
information contained in the Prospectus dated October 28, 1996 and is derived
from the Fund's unaudited Financial Statements dated December 31, 1996.
Munder International Bond Fund
Period
Ended
2/31/96(a,d)
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Net asset value, beginning of period ................................................... $ 10.00
----------------
Income from investment operations:
Net investment income .................................................................. 0.10
Net realized and unrealized gain on investments......................................... 0.14
----------------
Total from investment operations ....................................................... 0.24
----------------
Less distributions:
Dividends from net investment income ................................................... (0.08)
-----------------
Total distributions .................................................................... (0.08)
-----------------
Net asset value, end of period ......................................................... $ 10.16
================
Total return(b) ........................................................................ 2.43%
================
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................................................... $29,820
Ratio of operating expenses to average net assets ...................................... 0.85% (c)
Ratio of net investment income to average net assets ................................... 3.93% (c)
Portfolio turnover rate ................................................................ 31%
Ratio of operating expenses to average net assets without waivers ..................... 0.85% (c)
Net investment income per share without waivers......................................... $0.10
-----
- ---------------------------------
<FN>
(a)......The Munder International Bond Fund Class Y Shares commenced operations on October 2, 1996.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period
since the use of the undistributed net investment income method did not
accord with the results of operations.
</FN>
</TABLE>
<PAGE>
MANAGEMENT
Performance Information
Set forth below is certain performance information regarding the Munder
Accelerating Growth Fund, Munder Small Company Growth Fund, Munder International
Equity Fund, Munder Index 500 Fund, Munder Bond Fund, Munder U.S. Government
Income Fund, Munder Intermediate Bond Fund and Munder Tax-Free Bond Fund (the
"Funds") provided by Munder Capital Management (the "Advisor") or Comerica Bank
("Comerica") each of which was created through the conversion of a predecessor
common or collective trust fund managed by the Advisor or Comerica and which had
investment objectives and policies similar to those of the corresponding Funds.
See in the prospectus "Investment Objectives and Polices" and "Portfolio
Instruments and Practices and Associated Risk Factors". Immediately prior to and
following the conversion, the same individual at the Advisor or Comerica managed
a Fund as both a common or collective trust fund and as a mutual fund.
The table for each Fund includes the rates of average annual total
return achieved on the Fund's assets when managed as a mutual fund and the rates
of average annual return achieved on its assets when managed as a common or
collective trust fund prior to the conversion of that common or collective fund
into the current mutual fund. The performance information assumes the
reinvestment of net income and capital gain distributions. The common or
collective fund returns are calculated by assuming that the same fees and
expenses currently applicable to a Fund had also applied to the corresponding
common or collective trust fund prior to its conversion to a mutual fund.
Past performance of the Funds is not an indication of future results.
The quoted performance data below includes the performance of each respective
common or collective trust fund for periods before the corresponding mutual
fund's registration statement became effective. The common and collective trust
funds were not registered under the Investment Company Act of 1940 (the "1940
Act") and therefore were not subject to certain investment restrictions that are
imposed by the 1940 Act. If the common and collective trust funds had been
registered under the 1940 Act, the common and collective trust funds'
performance may have been adversely affected.
<TABLE>
<CAPTION>
<S> <C> <C>
Munder Accelerating
Period Ended Growth Fund S&P 500
December 31, 1996 (Class Y)* Index**
----------------- --------- -----
1 Year...................................... 13.07% 22.96%
3 Years..................................... 9.40% 19.67%
5 Years..................................... 11.06% 15.22%
Inception on January 1, 1990................ 12.34% 14.40%
.........
* Converted from collective trust fund to mutual fund on December 1, 1991
** Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index")
performance shows total return in U.S. dollars but does not reflect the
deduction of fees, expenses and taxes. Source: Lipper Analytical Services,
Inc.
<PAGE>
Munder Small Company
Period Ended Growth Fund Russell 2000
December 31, 1996 (Class Y)* Index**
----------------- --------- -----
1 Year...................................... 37.17% 16.49%
3 Years..................................... 20.24% 13.68%
5 Years..................................... 18.30% 15.64%
10 Years.................................... 16.95% 12.41%
Inception on December 31, 1982.............. 15.29% 12.71%
..................
* Converted from collective trust fund to mutual fund on December 1, 1991
** Russell 2000 Index performance shows total return in U.S. dollars but
does not reflect the deduction of
fees, expenses and taxes. Source: Lipper Analytical Services, Inc.
Munder International
Period Ended Equity Fund FT/S&P Actuaries
December 31, 1996 (Class Y)* World Index ex. U.S.**
1 Year...................................... 10.41% 6.48%
3 Years..................................... 4.89% 8.42%
5 Years..................................... 9.14% 7.93%
Inception on September 30, 1990............. 10.37% 10.31%
.........
* Converted from collective trust fund to mutual fund on December 1, 1991
** FT/S&P Actuaries World Index ex. U.S. performance shows total return i
U.S. dollars but does not reflect the deduction of fees, expenses and
taxes. Source: Ibbotson Associates, Inc.
Munder Index
Period Ended 500 Fund S&P 500
December 31, 1996 (Class Y)* Index**
----------------- --------- -----
1 Year...................................... 22.47% 22.96%
3 Years..................................... 19.34% 19.67%
5 Years..................................... 14.87% 15.22%
Inception on January 27, 1988............... 15.51% 16.08%
.........
* Converted from collective trust fund to mutual fund on December 1, 1991
** S&P 500 Index performance shows total return in U.S. dollars but does
not reflect the deduction of fees, expenses and taxes. Source:
Lipper Analytical Services, Inc.
<PAGE>
Munder Lehman Brothers
Period Ended Bond Fund Gov't/Corp. Bond
December 31, 1996 (Class Y)* Index**
----------------- --------- -----
1 Year..................................... 2.72% 2.90%
3 Years.................................... 5.10% 5.79%
5 Years.................................... 5.48% 7.18%
10 Years................................... 7.28% 8.38%
.........
* Converted from collective trust fund to mutual fund on December 1, 1991
** Lehman Brothers Government/Corporate Bond Index performance shows total
return in U.S. dollars but does not reflect the deduction of fees,
expenses and taxes. Source: Lipper Analytical Services, Inc.
Munder U.S. Lehman Brothers
Period Ended Government Income Fund Gov't/Corp. Bond
December 31, 1996 (Class Y)* Index**
----------------- --------- -----
1 Year...................................... 3.13% 2.90%
3 Years.................................... 4.43% 5.79%
5 Years.................................... 6.32% 7.18%
10 Years................................... 7.48% 7.76%
.........
* Converted from common trust fund to mutual fund on July 5, 1994
** Lehman Brothers Government/Corporate Bond Index performance shows total
return in U.S. dollars but does not reflect the deduction of fees,
expenses and taxes. Source: Lipper Analytical Services, Inc.
Munder Intermediate Lehman Brothers.
Period Ended Bond Fund Intermediate Gov't/Corp.
December 31, 1996 (Class Y)* Bond Index**
----------------- --------- ----------
1 Year...................................... 3.13% 4.05%
3 Years..................................... 4.49% 5.58%
5 Years..................................... 5.65% 6.53%
10 Years.................................... 7.04% 7.91%
Inception on March 31, 1982................. 9.22% 10.47%
.........
* Converted from collective trust fund to mutual fund on December 1, 1991
** Lehman Brothers Intermediate Government/Corporate Bond Index
performance shows total return in U.S. dollars but does not reflect
the deduction of fees, expenses and taxes. Source: Lipper Analytical
Services, Inc.
<PAGE>
Munder Tax-Free
Period Ended Bond Fund Lehman 15-Year
December 31, 1996 (Class Y)* Muni Bond Index**
----------------- --------- ---------------
1 Year...................................... 2.38% 4.65%
3 Years..................................... 4.24% 5.44%
5 Years..................................... 6.67% 8.05%
10 Years.................................... 6.57% N/A
.........
* Converted from common trust fund to mutual fund on July 21, 1994
** Lehman 15-Year Municipal Bond Index performance shows total return in
U.S. dollars but does not reflect the deduction of fees, expenses and
taxes. Source: Lipper Analytical Services, Inc.
</TABLE>
Indices
The S&P 500 Index is an unmanaged index of common stock prices,
including reinvestment of dividends.
The Russell 2000 Index is a capitalization weighted total return index
which is comprised of 2,000 of the smallest capitalized U.S. domiciled companies
whose stock is traded in the United States on the New York Stock Exchange,
American Stock Exchange and the NASDAQ.
The FT/S&P Actuaries World Index ex U.S. is an unmanaged index used to
portray global equity markets excluding the U.S. The Index is weighted based on
the market capitalization of those stocks selected to represent each country and
includes gross reinvestment of dividends.
The Lehman Brothers Government/Corporate Bond Index is a weighted
composite of (i) Lehman Brothers Government Bond Index, which is comprised of
all publicly issued, non-convertible debt of the U.S. Government or any agency
thereof, quasi-federal corporations, and corporate debt guaranteed by the U.S.
Government and (ii) Lehman Brothers Corporate Bond Index, which is comprised of
all public fixed-rate, non-convertible investment-grade domestic corporate debt,
excluding collateralized mortgage obligations.
The Lehman Brothers Intermediate Government/Corporate Bond Index is a
weighted composite of (i) Lehman Brothers Intermediate Government Bond Index,
which is comprised of all publicly issued, non-convertible debt of the U.S.
Government or any agency thereof, quasi-Federal corporations and corporate debt
guaranteed by the U.S. Government with a maturity of between one and ten years
and (ii) Lehman Brothers Corporate Bond Index.
The Lehman Brothers 15-Year Municipal Bond Index is a performance
benchmark for the long-term investment-grade tax-exempt bond market.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER SMALL-CAP VALUE FUND AND MUNDER SMALL
COMPANY GROWTH FUND
Edward Eberle, Portfolio Manager of the Advisor, has been co-manager of
the Value Fund since October, 1996. Mr. Eberle has been appointed co-manager of
the Small-Cap Value Fund. Prior to being appointed co-manager, Mr. Eberle acted
as the primary analyst for the Funds, assisting the manger with portfolio
decisions. He is also a member of the Advisor's asset allocation team. Prior to
joining the Advisor in 1995, Mr. Eberle served as Executive Vice President and
Portfolio Manager for Westpointe Financial Corporation and as a member of the
Board of Directors for Westpointe Capital Management and Dart Investors Bermuda
Limited. Mr.
Eberle received a B.A. in Finance from Michigan State University.
Michael P. Gura, CFA, Senior Portfolio Manager of the Advisor, has been
appointed co-manager of the Small Company Growth Fund. Prior to joining the
Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
Woodbridge Capital Management, Inc. From 1989-1994, Mr. Gura was an investment
officer at Manufacturers National Bank Trust Investment Department where he was
responsible for equity research covering the retailing, apparel, specialty
chemical and environmental industries. From 1986-1989, Mr. Gura served as a
Financial/Tax Planning analyst for Manufacturers National Bank. Mr. Gura
received an M.S. in Finance with Distinction and a B.B.A. from Walsh College, is
a member of the Financial Analyst Society of Detroit and a Certified Financial
Planner.
PORTFOLIO INSTRUMENTS AND PRACTICES AND ASSOCIATED RISK FACTORS
.........The Munder Bond Fund, Munder Intermediate Bond Fund, Munder
International Bond Fund, Munder U.S. Government Income Fund, Munder Michigan
Triple Tax-Free Bond Fund, Munder Tax-Free Bond Fund and Munder Tax-Free
Intermediate Bond Fund (each a "Fixed-Income Fund") may invest in preferred
stock. Preferred stock ranks senior to common stock in the capital structure of
an issuer and in the payment of dividends. Consequently, preferred stock may
entail less risk than common stock. Some preferred stock in which the
Fixed-Income Funds invest is convertible into common stock. Convertible
preferred stock may be converted either at a stated price or rate within a
specified period of time into a specified number of shares of common stock. By
investing in convertible preferred stock, a Fixed-Income Fund seeks the
opportunity, through the conversion feature, to participate in the capital
appreciation of the common stock into which the securities are convertible,
while earning higher current income than is available from the common stock.
Convertible preferred stocks entitle the holder to receive the dividend paid on
preferred stock until the convertible preferred stocks mature or are redeemed,
converted or exchanged. Prior to conversion, convertible preferred stocks have
characteristics similar to ordinary debt securities in that they normally
provide a stable stream of income with generally higher yields than those of
common stock of the same or similar issuers. In evaluating a convertible
preferred stock, to the extent consistent with a Fixed-Income Fund's investment
objective, the Advisor places emphasis on the attractiveness of the underlying
common stock and the potential for capital appreciation through conversion.
CHANGE IN DIVIDEND DETERMINATION TIME WITH RESPECT TO MUNDER CASH INVESTMENT
FUND, MUNDER MONEY MARKET FUND AND MUNDER U.S. TREASURY MONEY MARKET FUND
(THE "MONEY MARKET FUNDS")
.........Shares of the Money Market Funds are sold at net asset value per
share next determined after a purchase order is received and becomes effective.
Purchase orders by an institution for shares in the Money Market Funds become
effective when the purchase order is received, together with payment, by First
Data Investor Services Group, Inc. (the "Transfer Agent") by 4:00 p.m. (Eastern
time) on any day on which the New York Stock Exchange is open for business. A
purchase order received by the Transfer Agent after such time will not be
accepted; notice thereof will be given to the institution placing the order, and
any funds received will be returned promptly to the sending institution.
Effective January 2, 1997, shareholders of the Money Market Funds whose purchase
orders are received and become effective by 2:45 p.m. (Eastern Time) receive
dividends for that day. Shareholders whose redemption orders have been received
by 2:45 p.m. (Eastern Time) will not receive dividends for that day, while
shareholders whose redemption orders are received after 2:45 p.m. (Eastern Time)
will receive that day's dividends.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER MICHIGAN TRIPLE TAX-FREE BOND
FUND, MUNDER TAX-FREE BOND FUND, AND MUNDER TAX-FREE INTERMEDIATE BOND FUND
.........Talmadge D. Gunn, Vice President and Director of Tax-Exempt
Trading of the Advisor since 1993, currently manages the Michigan Triple
Tax-Free Bond Fund, Tax-Free Bond Fund and Tax-Free Intermediate Bond Fund. Mr.
Gunn is responsible for managing fixed income portfolios and overseeing the
trading of tax-exempt fixed income securities for the Advisor. Prior to joining
MCM, he was employed by Comerica Bank as Assistant Vice President and Securities
Trader (1985-1993) and Senior Investment Analyst for the Fixed Income Division
(1984-1985).
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER INDEX 500 FUND
.........Kenneth A. Schluchter III, has been appointed co-manager of the
Index 500 Fund. Prior to joining the Advisor, Mr. Schluchter was a Systems
Developer and Data Analyst for Compuware Incorporated (1993-1995) and a Business
Analyst for Central Transport Incorporated (1989-1993). Mr. Schluchter received
a B.S. and an M.B.A. from the University of Michigan.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR THE MUNDER ACCELERATING GROWTH
FUND AND MUNDER MID-CAP GROWTH FUND
.........The Munder Accelerating Growth Fund and Munder Mid-Cap Growth Fund
are managed by a committee of professional portfolio managers of the Advisor.
<PAGE>
THIS SUPPLEMENT SUPERSEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated June 27, 1997
to Statement of Additional Information dated October 28, 1996
Munder Accelerating Growth Fund, Munder Balanced Fund, Munder Equity Selection
Fund, Munder Growth & Income Fund, Munder Index 500 Fund, Munder
International Equity Fund, Munder Micro-Cap Equity Fund, Munder Mid-Cap
Growth Fund, Munder Multi-Season Growth Fund, Munder Real Estate Equity
Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Bond Fund, Munder Intermediate Bond Fund,
Munder International 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 Cash Investment Fund, Munder Money
Market Fund, Munder Tax-Free Money Market Fund, and Munder U.S. Treasury
Money Market Fund
.........The following unaudited Financial Statements dated April 30, 1997
relating to the Munder Micro-Cap Equity Fund and the Munder Small-Cap Value Fund
and unaudited Financial Statements dated December 31, 1996 relating to the
Munder International Bond Fund supplements the Statement of Additional
Information dated October 28, 1996.
.........Effective May 16, 1997, the first sentence of the section entitled
"Fund Investments -- Foreign Securities" is hereby deleted in its entirety and
supplemented as follows:
.........The Equity Selection Fund, Micro-Cap Equity Fund, Mid-Cap Growth Fund,
Multi-Season Growth Fund, Small-Cap Value Fund and Value Fund each may invest up
to 20% and each other Equity Fund (except the Real Estate Equity Investment Fund
and the International Equity Fund), each Bond Fund, the Balanced Fund, the Cash
Investment Fund and each Tax-Free Bond Fund may invest up to 10% of its assets
in foreign securities. Under normal market conditions, the International Equity
Fund and the International Bond Fund will each invest at least 65% of its assets
in equity securities and bonds, respectively, of issuers located in at least
three countries other than the United States. Notwithstanding these limitations,
the Equity Funds, the Balanced Fund, the Bond Funds, the Cash Investment Fund,
the Money Market Fund and the International Bond Fund may each invest up to 25%
of its total assets in the obligations of foreign banks and foreign branches of
domestic banks.
<PAGE>
MUNDER MICRO-CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS, APRIL 30, 1997 (UNAUDITED)
=====================================================================
===========
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS - 88.0%
ADVERTISING - 2.2%
1,800 HA-LO Industries, Inc. $ 30,150
-----------
APPAREL - 1.8%
2,500 Farah, Inc. 24,688
-----------
BANKING AND FINANCIAL SERVICES - 8.9%
440 Centennial Bancorp + 8,250
650 Dime Financial Corporation 12,269
4,000 Hamilton Bancorp, Inc. 77,000
590 Litchfield Financial Corporation 8,408
200 SIS Bancorp, Inc. 5,200
600 Vectra Banking Corporation + 11,475
-----------
122,602
-----------
BROADCASTING - 0.9%
1,680 Medialink Worldwide Incorporated 12,180
-----------
BUILDING MATERIALS - 2.5%
1,370 Drew Industries, Inc. + 14,899
1,410 Kevco, Inc. 19,035
-----------
33,934
-----------
BUSINESS EQUIPMENT AND SUPPLIES - 1.3%
3,020 Raster Graphics, Inc. + 18,498
-----------
CHEMICALS - 0.6%
1,860 American Materials & Technologies
Corporation + 8,370
-----------
COMMERCIAL SERVICES - 11.7%
1,140 ACE Cash Express, Inc. + 13,538
1,320 Avert, Inc. + 8,580
730 Forrester Research, Inc.+ 13,323
920 F.Y.I. Incorporated + 16,560
840 Lason Holdings, Inc. + 14,280
2,000 Premier Research Worldwide, Ltd. 19,250
1,060 META Group, Inc. 18,020
1,240 ONTRACK Data International, Inc. + 19,452
960 SOS Staffing Services, Inc. 11,280
1,090 Steiner Leisure Ltd. 26,432
-----------
160,715
-----------
COMPUTER HARDWARE, SOFTWARE OR SERVICES - 5.4%
760 Analytical Surveys, Inc. + 8,170
1,110 Axent Technologies, Inc. + 12,904
700 Engineering Animation, Inc. + 16,100
1,200 Signal Technology Corporation 8,250
1,280 Simulation Sciences, Inc. + 13,040
680 Technology Modeling Associates, Inc. + 6,800
800 XcelleNet, Inc. 9,500
-----------
74,764
-----------
DIVERSIFIED - 0.6%
500 American Precision Industries 8,562
-----------
ELECTRICAL EQUIPMENT - 3.4%
1,070 QLogic Corporation 21,400
1,480 Quad Systems Corporation + 14,800
510 Trident International, Inc. + 10,200
-----------
46,400
-----------
ENERGY - 1.2%
680 Key Energy Group, Inc. + 9,180
970 York Research Corporation + 7,275
-----------
16,455
-----------
HOTELS AND RESTAURANTS - 2.6%
1,300 Candlewood Hotel Company, Inc. 11,375
1,000 Schlotzsky's, Inc. 11,750
1,500 Shells Seafood Restaurants, Inc. 12,000
-----------
35,125
-----------
INSURANCE - 2.3%
1,310 FPIC Insurance Group, Inc. 23,580
860 Westbridge Capital Corporation + 7,740
-----------
31,320
-----------
MACHINERY - 1.2%
700 Gradall Industries. Inc. + 8,575
420 Hirsch International Corporation + 7,665
-----------
16,240
-----------
MANUFACTURED HOUSING - 0.6%
1,090 Miller Building Systems, Inc. + 7,766
-----------
MEDICAL AND MEDICAL SERVICES - 10.3%
1,110 Alliance Imaging, Inc. + 8,394
300 Assisted Living Concepts Inc. 6,600
1,090 CN Biosciences, Inc. + 16,350
3,000 Coast Dental Services, Inc. 42,000
1,060 MedQuist, Inc. 26,765
1,500 Morrison Health Care, Inc. 22,312
1,520 Neogen Corporation + 10,070
1,075 SMT Health Services, Inc. + 9,541
-----------
142,032
-----------
MEDICAL SUPPLIES - 1.4%
550 Sabratek Corporation + 12,031
400 SeaMED Corporation + 6,800
-----------
18,831
-----------
METAL PROCESSING - 0.9%
1,190 SIFCO Industries, Inc. + 12,495
-----------
OIL & GAS - 1.0%
1,480 American Oilfield Divers Inc. 13,320
-----------
PHARMACEUTICALS - 3.6%
5,000 ChiRex Inc. + 49,375
-----------
RETAIL - 3.8%
1,000 Mazel Stores, Inc. 14,500
2,200 Rent-Way, Inc. + 22,825
5,070 Shop At Home, Inc. 15,210
-----------
52,535
-----------
TECHNOLOGY - 7.0%
2,300 Ault, Inc. + 16,963
1,650 Datum, Inc. + 38,362
1,970 Excel Technology, Inc. + 15,021
1,170 Spectran Corporation + 16,672
850 Thermo Sentron, Inc. + 9,456
-----------
96,474
-----------
TELECOMMUNICATIONS - 9.7%
1,800 ACE*COMM Corporation 20,700
1,340 Inter-Tel, Inc. 16,750
650 JPM Company 11,863
2,380 KHV Industries, Inc. 13,685
6,800 TALX Corporation + 43,350
1,970 ViaSat, Inc. 18,715
1,450 Wave Technologies International, Inc. + 8,338
-----------
133,401
-----------
TEXTILES - 1.4%
740 Conso Products Company + 10,082
800 Cutter & Buck, Inc. + 9,600
-----------
19,682
-----------
TRANSPORTATION - TRUCKING - 0.7%
630 US Xpress Enterprises, Inc. + 9,450
-----------
WIRELESS EQUIPMENT - 1.0%
780 Electromagnetic Sciences, Inc. 13,260
-----------
TOTAL COMMON STOCKS (Cost $1,253,605) 1,208,624
-----------
SHORT-TERM INVESTMENT - 3.5% (Cost $48,233)
48,233 Dreyfus Cash Management Plus Fund 48,233
-----------
TOTAL INVESTMENTS (Cost $1,301,838*) 91.5% 1,256,857
OTHER ASSETS AND LIABILITIES (Net) 8.5 116,546
===== ===========
NET ASSETS 100.0% $ 1,373,403
===== ===========
- ------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security
See Notes to Financial Statements.
<PAGE>
MUNDER SMALL-CAP VALUE FUND
PORTFOLIO OF INVESTMENTS, APRIL 30, 1997 (UNAUDITED)
=====================================================================
===========
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 44.7%
AEROSPACE - 0.5%
13,200 Rohr Industries, Inc. + $ 206,250
-----------
AIRLINES - 0.9%
10,000 Midwest Express Holdings, Inc. + 412,500
-----------
AUTOMOBILE PARTS & EQUIPMENT - 1.6%
35,900 Control Devices, Inc. + 444,263
18,200 Strattec Security Corporation + 304,850
-----------
749,113
-----------
BANKING AND FINANCIAL SERVICES - 7.1%
13,180 Carolina First Corporation 210,880
10,900 Charter Financial Inc. 193,475
5,200 Coast Savings Financial Inc. + 209,300
17,800 Commonwealth Bancorp Inc. 255,875
24,000 Flagstar Bancorp, Inc. 312,000
43,900 Long Beach Financial Corporation + 299,069
6,200 Long Island Bancorp, Inc. 210,800
13,600 McDonald & Company Investments 489,600
12,900 Metris Companies Inc. + 322,500
7,100 Ocean Financial Corporation + 209,894
13,630 Primary Bank + 323,712
2,600 SIS Bancorp, Inc. + 67,600
13,000 Statewide Financial Corporation 202,312
-----------
3,307,017
-----------
BUILDING MATERIALS - 2.4%
27,000 Dayton Superior Corporation+ 313,875
16,700 U.S. Home Corporation + 411,238
31,600 Universal Forest Products, Inc. 402,900
-----------
1,128,013
-----------
CHEMICALS - 1.5%
31,900 General Chemical Group Inc. 709,775
-----------
COMPUTER HARDWARE, SOFTWARE OR SERVICES - 1.5%
35,700 Sandisk Corporation + 455,175
10,700 3D Labs Inc., Ltd. + 251,450
-----------
706,625
-----------
COMMERCIAL SERVICES - 1.9%
45,000 First Aviation Services, Inc. 382,500
21,400 Steiner Leisure Ltd. 518,950
-----------
901,450
-----------
CONSUMER DURABLES - 0.3%
15,810 Lifetime Hoan Corporation + 130,432
-----------
DIVERSIFIED INDUSTRIAL - 2.3%
16,400 Griffon Corporation + 198,850
34,600 JLG Industries, Inc. 432,500
16,300 Watts Industries, Inc. 415,650
-----------
1,047,000
-----------
ELECTRONICS - 1.7%
15,800 Checkmate Electronics, Inc. + 195,525
13,800 Integrated Process Equipment Corporation 188,025
17,100 Microsemi Corporation + 215,887
17,100 Pioneer-Standard Electronics, Inc. 209,475
-----------
808,912
-----------
FOOD AND BEVERAGES - 2.1%
28,100 Hudson Foods, Inc. 435,550
18,200 J&J Snack Foods Corporation + 232,050
16,300 Worthington Foods, Inc. 307,662
-----------
975,262
-----------
HEALTH CARE - 1.2%
28,500 Trigon Healthcare, Inc. 541,500
-----------
HOME FURNISHINGS - 0.9%
11,900 Toro Company 416,500
-----------
INSURANCE - 3.3%
7,100 Executive Risk, Inc. 321,275
17,900 IPC Holdings Ltd. 411,700
10,600 NAC Re Corporation 410,750
14,000 Philadelphia Consolidated Holding Corporation + 416,500
-----------
1,560,225
-----------
MANUFACTURING - 1.0%
10,200 Core Industries Inc. 150,450
20,700 Foamex International, Inc. 297,563
-----------
448,013
-----------
MEDICAL SUPPLIES - 2.0%
26,200 Bindley Western Industries, Inc. 491,250
29,900 Sullivan Dental Products, Inc. 441,025
-----------
932,275
-----------
METALS AND METAL PROCESSING - 1.2%
146,100 Recycling Industries, Inc. + 187,191
64,400 UNR Industries, Inc. 394,450
-----------
581,641
-----------
OIL AND GAS - 3.0%
3,000 Cliffs Drilling Company + 183,000
10,400 Colonial Gas Company 208,000
8,600 Houston Exploration Company + 107,500
5,900 Marine Drilling Companies, Inc. + 92,925
6,600 North Carolina Natural Gas Corporation 195,525
8,700 Southern Union Company + 207,712
12,400 Southwest Gas Corporation 206,150
10,200 Veritas DGC Inc. + 196,350
-----------
1,397,162
-----------
REAL ESTATE - 3.0%
4,400 Bay Apartment Communities, Inc. 147,400
5,600 Developers Diversified Realty Corporation 206,500
8,400 Golf Trust of America 214,200
7,800 JP Realty, Inc. 197,925
12,900 Kilroy Realty Corp. + 303,150
13,000 Prentiss Properties Trust 307,125
-----------
1,376,300
-----------
RECREATION - 0.5%
8,100 K2, Inc. 211,613
-----------
RETAIL - 1.4%
16,300 Mazel Stores, Inc. 236,350
21,300 Pier 1 Imports, Inc. 420,675
-----------
657,025
-----------
TELECOMMUNICATIONS - 2.1%
75,800 Century Communication Corporation, Class A + 307,937
17,900 REMEC, Inc. 411,700
29,200 ViaSat, Inc. 277,400
-----------
997,037
-----------
TRANSPORTATION - 1.3%
32,900 MotivePower Industries Inc. 386,575
12,400 Roadway Express, Inc. 217,000
-----------
603,575
-----------
TOTAL COMMON STOCKS (Cost $21,222,344) 20,805,215
-----------
PRINCIPAL
AMOUNT
- ---------------------
REPURCHASE AGREEMENT - 4.3% (COST $2,025,160)
$2,025,160 Agreement with Lehman Brothers Inc., 5.400%
dated 04/30/1997 to be repurchased at
$2,025,464 on 05/01/1997, collateralized by
$2,065,000 U.S. Treasury Notes,
6.370% due 04/30/1999 (value $2,066,301) 2,025,160
-----------
TOTAL INVESTMENTS (Cost $23,247,504*) 49.0% 22,830,375
OTHER ASSETS AND LIABILITIES (Net) 51.0 23,753,333
===== ===========
NET ASSETS 100.0% $46,583,708
===== ===========
- -----------------
* Aggregate cost for Federal tax purposes.
+ Non-income producing security
See Notes to Financial Statements.
<PAGE>
<TABLE>
THE MUNDER FUNDS
STATEMENT OF ASSETS AND LIABILITIES, PERIOD ENDED APRIL 30, 1997
(UNAUDITED)
----------------------------------------------------------------------------------------------------------
<CAPTION>
MUNDER MUNDER
MICRO-CAP SMALL-CAP
EQUITY VALUE
FUND FUND
-----------------------------
<S> <C> <C>
ASSETS:
Investments, at value
See accompanying schedule:
Securities ................................................................ $1,256,857 $20,805,215
Repurchase Agreement ...................................................... - 2,025,160
---------- -----------
Total investments ............................................................ 1,256,857 22,830,375
Cash ......................................................................... - 198
Dividends and interest receivable ............................................ 169 3,695
Receivable for investments securities sold ................................... 64,230 61,776
Receivable for Fund shares sold .............................................. 53,610 24,481,319
Receivable from investment advisor ........................................... 20,076 17,235
Prepaid expenses ............................................................. 36,747 36,843
---------- -----------
Total Assets .......................................................... 1,431,689 47,431,441
---------- -----------
LIABILITIES:
Payable for investment securities purchased .................................. 45,980 821,643
Investment advisory fee payable .............................................. 1,046 11,353
Administration fee payable ................................................... 120 1,710
Distribution fees payable .................................................... 114 248
Shareholder servicing fees payable ........................................... 15 1,646
Transfer agent fee payable ................................................... 68 315
Custodian fees payable ....................................................... 4,983 4,132
Legal and audit fees payable ................................................. 392 719
Accrued expenses and other payables .......................................... 5,568 5,967
---------- -----------
Total Liabilities ..................................................... 58,286 847,733
---------- -----------
NET ASSETS ................................................................... $1,373,403 $46,583,708
========== ===========
Investments, at cost ......................................................... $1,301,838 $23,247,504
========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
THE MUNDER FUNDS
STATEMENT OF ASSETS AND LIABILITIES, PERIOD ENDED APRIL 30, 1997
(UNAUDITED)
(Continued)
----------------------------------------------------------------------------------------------------------
<CAPTION>
MUNDER MUNDER
MICRO-CAP SMALL-CAP
EQUITY VALUE
FUND FUND
-----------------------------
<S> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income/(loss) ...................................... $ (2,009) $ 21,524
Accumulated net realized loss on investments sold ............................... (61,039)
(9,476)
Net unrealized depreciation of investments ...................................... (44,981) (417,129)
Par value ....................................................................... 1,405 44,239
Paid-in capital in excess of par value .......................................... 1,480,027 46,944,550
---------- -----------
$1,373,403 $46,583,708
========== ===========
NET ASSETS:
Class A Shares .................................................................. $ 77,070 $ 664,772
========== ===========
Class B Shares .................................................................. $ 129,273 $ 124,345
========== ===========
Class C Shares .................................................................. $ 8,843 $ 25,349
========== ===========
Class K Shares .................................................................. $ 112,781 $33,996,432
========== ===========
Class Y Shares .................................................................. $1,045,436 $11,772,810
========== ===========
SHARES OUTSTANDING:
Class A Shares .................................................................. 7,887 63,149
========== ===========
Class B Shares .................................................................. 13,245 11,825
========== ===========
Class C Shares .................................................................. 905 2,410
========== ===========
Class K Shares .................................................................. 11,541 3,228,503
========== ===========
Class Y Shares .................................................................. 106,960 1,118,025
========== ===========
CLASS A SHARES:
Net asset value and redemption price per share .................................. $ 9.77 $ 10.53
========== ===========
Maximum sales charge ............................................................ 5.50% 5.50%
Maximum offering price per share ................................................ $ 10.34 $ 11.14
========== ===========
CLASS B SHARES:
Net asset value and offering price per share* ................................... $ 9.76 $ 10.52
========== ===========
CLASS C SHARES:
Net asset value and offering price per share* ................................... $ 9.77 $ 10.52
========== ===========
CLASS K SHARES:
Net asset value, offering price and redemption price per share .................. $ 9.77 $
10.53
========== ===========
CLASS Y SHARES:
Net asset value, offering price and redemption price per share .................. $ 9.77 $
10.53
========== ===========
</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>
<TABLE>
THE MUNDER FUNDS
STATEMENT OF OPERATIONS, PERIOD ENDED APRIL 30, 1997
(UNAUDITED)
----------------------------------------------------------------------------------------------------------
<CAPTION>
MUNDER MUNDER
MICRO-CAP SMALL-CAP
EQUITY VALUE
FUND(a) FUND(a)
-----------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest ......................................................................... $ 1,330 $ 31,282
Dividends ........................................................................ 634 22,283
--------- ---------
Total Investment Income .................................................. 1,964 53,565
--------- ---------
EXPENSES:
Distribution and shareholder servicing fees:
Class A Shares ................................................................ 36 158
Class B Shares ................................................................ 151 183
Class C Shares ................................................................ 4 29
Shareholder servicing fees:
Class K Shares ................................................................. 74 2,652
Investment advisory fee .......................................................... 2,963 21,793
Administration fee ............................................................... 336 3,277
Transfer agent fee ............................................................... 110 592
Custodian fees ................................................................... 7,268 6,398
Legal and audit fees ............................................................. 2,708 3,035
Directors' fees and expenses ..................................................... 13 121
Registration and filing fees ..................................................... 24,045 24,149
Other ............................................................................ 744 1,309
--------- ---------
Total Expenses ............................................................ 38,452 63,696
Expenses reimbursed by investment advisor ........................................ (34,479)
(31,655)
--------- ---------
Net Expenses .............................................................. 3,973 32,041
--------- ---------
NET INVESTMENT INCOME/(LOSS) ..................................................... (2,009)
21,524
--------- ---------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss from security transactions ..................................... (61,039) (9,476)
Net change in unrealized depreciation of securities .............................. (44,981)
(417,129)
--------- ---------
Net realized and unrealized loss on investments .................................. (106,020)
(426,605)
--------- ---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .............................
$(108,029) $(405,081)
========= =========
</TABLE>
(a) Munder Micro-Cap Equity Fund and Munder Small-Cap Value Fund commenced
operations on December 26, 1996.
See Notes to Financial Statements.
<PAGE>
<TABLE>
THE MUNDER FUNDS
STATEMENT OF CHANGE IN NET ASSETS, PERIOD ENDED APRIL 30, 1997
(UNAUDITED)
----------------------------------------------------------------------------------------------------------
<CAPTION>
MUNDER MUNDER
MICRO-CAP SMALL-CAP
EQUITY VALUE
FUND(a) FUND(a)
-----------------------------
<S> <C> <C>
Net investment income/(loss) ..................................................... $ (2,009) $ 21,524
Net realized loss on investments sold ............................................ (61,039) (9,476)
Net change in unrealized depreciation of investments ............................. (44,981)
(417,129)
---------- -----------
Net decrease in net assets resulting from operations ............................. (108,029)
(405,081)
Net increase in net assets from Fund share transactions:
Class A Shares ............................................................... 83,818 668,493
Class B Shares ............................................................... 138,070 128,544
Class C Shares ............................................................... 9,020 25,406
Class K Shares ............................................................... 121,477 34,224,711
Class Y Shares ............................................................... 1,129,047 11,941,635
---------- -----------
Net increase in net assets ....................................................... 1,373,403 46,583,708
NET ASSETS:
Beginning of period .............................................................. - -
---------- -----------
End of period .................................................................... $1,373,403 $46,583,708
========== ===========
Undistributed net investment income/(loss) ....................................... $ (2,009) $ 21,524
========== ===========
</TABLE>
- ----------------------
(a) Munder Micro-Cap Equity Fund and Munder Small-Cap Value Fund commenced
operations on December 26, 1996.
See Notes to Financial Statements.
<PAGE>
<TABLE>
THE MUNDER FUNDS
STATEMENTS OF CHANGES- CAPITAL STOCK ACTIVITY, PERIOD ENDED
APRIL 30, 1997 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------
- --
<CAPTION>
MUNDER MUNDER
MICRO-CAP SMALL-CAP
EQUITY VALUE
FUND(a) FUND(b)
------------------------------------------------------------
CLASS A SHARES: SHARES AMOUNT SHARES
AMOUNT
------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Sold ............................................... 7,887 $ 83,818 66,946 $ 708,298
Issued as reinvestment of dividends ................ - - - -
Redeemed ........................................... - - (3,797) (39,805)
------- ---------- --------- -----------
Net increase ....................................... 7,887 $ 83,818 63,149 $ 668,493
======= ========== =========
===========
CLASS B SHARES:
Sold ............................................... 13,245 $ 138,070 11,441 $ 124,543
Issued as reinvestment of dividends ................ - - 384 4,001
Redeemed ........................................... - - - -
------- ---------- --------- -----------
Net increase ....................................... 13,245 $ 138,070 11,825 $
128,544
======= ========== =========
===========
CLASS C SHARES:
Sold ............................................... 905 $ 9,020 2,410 $ 25,406
Issued as reinvestment of dividends ................ - - - -
Redeemed ........................................... - - - -
------- ---------- --------- -----------
Net increase ....................................... 905 $ 9,020 2,410 $ 25,406
======= ========== =========
===========
CLASS K SHARES:
Sold ............................................... 16,120 $ 167,127 3,236,526
$34,309,115
Issued as reinvestment of dividends ................ - - - -
Redeemed ........................................... (4,579) (45,650) (8,023) (84,404)
------- ---------- --------- -----------
Net increase ....................................... 11,541 $ 121,477 3,228,503
$34,224,711
======= ========== =========
===========
CLASS Y SHARES:
Sold ............................................... 110,344 $1,163,525 1,154,877
$12,326,182
Issued as reinvestment of dividends ................ - - - -
Redeemed ........................................... (3,384) (34,478) (36,852)
(384,547)
------- ---------- --------- -----------
Net increase ....................................... 106,960 $1,129,047 1,118,025
$11,941,635
======= ========== =========
===========
</TABLE>
- -------------------------------
(a) Munder Micro-Cap Equity Fund Class A Shares, Class B Shares, Class C Shares,
Class K Shares and Class Y Shares commenced operations on December 26, 1996,
February 24, 1997, March 31, 1997, December 31, 1996, and December 26, 1996,
respectively.
(b) Munder Small-Cap Value Fund Class A Shares, Class B Shares, Class C Shares,
Class K Shares and Class Y Shares commenced operations on January 10, 1996,
February 11, 1997, January 13, 1997, December 31, 1996, and December 26,
1996, respectively.
See Notes to Financial Statements.
<PAGE>
MUNDER MICRO-CAP EQUITY FUND
FINANCIAL HIGHLIGHTS, FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD (UNAUDITED)
=====================================================================
==========
<TABLE>
<CAPTION>
CLASS CLASS CLASS CLASS
A SHARES B SHARES C SHARES Y
SHARES
----------- ----------- ---------- -----------
PERIOD PERIOD PERIOD
PERIOD
ENDED ENDED ENDED
ENDED
4/30/97(a,e) 4/30/97(a,e) 4/30/97(a,e)
4/30/97(a,e)
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 10.00 $ 11.00 $ 10.13 $
10.00
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss .................................. (0.02) (0.02) (0.02) (0.01)
Net realized and unrealized loss on investments ...... (0.21) (1.22) (0.34)
(0.22)
------- ------- ------- -------
Total from investment operations ..................... (0.23) (1.24) (0.36)
(0.23)
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. -- -- -- --
------- ------- ------- -------
Total distributions .................................. -- -- -- --
------- ------- ------- -------
Net asset value, end of period ....................... $ 9.77 $ 9.76 $ 9.77 $
9.77
======= ======= =======
=======
TOTAL RETURN (B) ..................................... (2.30)% (11.27)% (3.55)%
(2.30)%
======= ======= =======
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................. $77 $129 $9
$1,045
Ratio of operating expenses to average net assets .... 1.50%(c) 2.25% (c)
2.25%(c) 1.25% (c)
Ratio of net investment loss to average net assets ... (0.84)%(c) (1.59)% (c)
(1.59)%(c) (0.59)% (c)
Portfolio turnover rate .............................. 59% 59% 59% 59%
Ratio of operating expenses to average net assets
without expenses reimbursed by investment advisor 13.14%(c) 13.89% (c)
13.89%(c) 12.89%(c)
Average commission rate (d) .......................... $0.0562 $0.0562 $0.0562
$0.0562
======= ======= =======
=======
- -----------------------
(a) Munder Micro-Cap Equity Fund Class A Shares, Class B Shares, Class C Shares, and Class Y
Shares commenced operations
on December 26, 1996, February 24, 1997, March 31, 1997, and December 26, 1996,
respectively.
(b) Total return represents aggregate total return for the period indicated and does not reflect any
applicable sales
charges.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by the Fund.
(e) Per share numbers have been calculated using the average shares method, which more
appropriately presents the per
share data for the period since the use of the undistributed net investment income method did not
accord with the
results of operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
MUNDER MICRO-CAP EQUITY FUND
FINANCIAL HIGHLIGHTS, FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD (UNAUDITED)
=====================================================================
==========
CLASS
K SHARES
-----------
PERIOD
ENDED
4/30/97(a,e)
-----------
Net asset value, beginning of period......................... $ 10.11
-------
Income from investment operations:
Net investment loss.......................................... (0.02)
Net realized and unrealized loss on investments.............. (0.32)
-------
Total from investment operations............................. (0.34)
-------
Less distributions:
Dividends from net investment income......................... --
-------
Total distributions.......................................... --
-------
Net asset value, end of period............................... $ 9.77
=======
Total return (b) ........................................... (3.36)%
=======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)......................... $113
Ratio of operating expenses to average net assets............ 1.50%(c)
Ratio of net investment loss to average net assets........... (0.84)%(c)
Portfolio turnover rate...................................... 59%
Ratio of operating expenses to average net assets without
expenses reimbursed by investment advisor................ 13.14%(c)
Average commission rate (d).................................. $0.0562
- ---------------------
(a) Munder Micro-Cap Equity Fund Class K Shares commenced operations on December
31, 1996.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by
the Fund.
(e) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period since
the use of the undistributed net investment income method did not accord
with the results of operations.
See Notes to Financial Statements.
<PAGE>
MUNDER SMALL-CAP VALUE FUND
FINANCIAL HIGHLIGHTS, FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD (UNAUDITED)
=====================================================================
===========
<TABLE>
<CAPTION>
CLASS CLASS CLASS
CLASS
A SHARES B SHARES C SHARES
Y SHARES
----------- ---------- ----------- ----------
PERIOD PERIOD PERIOD
PERIOD
ENDED ENDED ENDED
ENDED
4/30/97(a) 4/30/97(a) 4/30/97(a)
4/30/97(a)
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 10.22 $ 10.76 $ 10.22
$ 10.00
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................ 0.00(e) 0.00(e) 0.00(e)
0.01
Net realized and unrealized gain/(loss) on investments 0.31 (0.24) 0.30
0.52
------- ------- ------- -------
Total from investment operations ..................... 0.31 (0.24) 0.30
0.53
------- ------- ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income ................. -- -- -- --
------- ------- ------- -------
Total distributions .................................. -- -- -- --
------- ------- ------- -------
Net asset value, end of period ....................... $ 10.53 $ 10.52 $ 10.52
$ 10.53
======= ======= =======
=======
TOTAL RETURN (B) ............ 3.03% (2.23)% 2.94%
5.30%
======= ======= =======
=======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................. $665 $124 $25
$11,773
------- ------- ------- -------
Ratio of operating expenses to average net assets .... 1.25%(c) 2.00%(c)
2.00%(c) 1.00%(c)
Ratio of net investment income/(loss) to average net
assets ............................................. 0.60%(c) (0.15)%(c) (0.15)%(c)
0.85%(c)
Portfolio turnover rate .............................. 21% 21% 21%
21%
------- ------- ------- -------
Ratio of operating expenses to average net assets
without expenses reimbursed by investment advisor 2.35%(c) 3.10%(c)
3.10% (c) 2.10%(c)
Average commission rate (d) .......................... $0.0364 $0.0364 $0.0364
$0.0364
- -------------------------
(a) Munder Small-Cap Value Fund Class A Shares, Class B Shares, Class C Shares, and Class Y
Shares commenced operations on
January 10, 1997, February 11, 1997, January 13, 1997, and December 31, 1996, respectively.
(b) Total return represents aggregate total return for the period indicated and does not reflect any
applicable sales charges.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by the Fund.
(e) Amount represents less than $0.01 per share.
See Notes to Financial Statements.
</TABLE>
<PAGE>
MUNDER SMALL-CAP VALUE FUND
FINANCIAL HIGHLIGHTS, FOR A SHARE OUTSTANDING THROUGHOUT THE
PERIOD (UNAUDITED)
=====================================================================
==========
CLASS
K SHARES
----------
PERIOD
ENDED
4/30/97(a)
----------
Net asset value, beginning of period ...................... $ 10.08
---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .......................... 0.00(e)
Net realized and unrealized gain/(loss) on investments .... 0.45
---------
Total from investment operations .......................... 0.45
---------
LESS DISTRIBUTIONS:
Dividends from net investment income ...................... --
---------
Total distributions ....................................... --
---------
Net asset value, end of period ............................ $ 10.53
=========
TOTAL RETURN (b) .......................................... 4.46%
=========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ...................... $33,996
Ratio of operating expenses to average net assets ......... 1.25%(c)
Ratio of net investment income/(loss) to average net assets 0.60%(c)
Portfolio turnover rate ................................... 21%
Ratio of operating expenses to average net assets
without expenses reimbursed by investment advisor ..... 2.35%(c)
Average commission rate (d) ............................... $0.0364
- ------------------
(a) Munder Small-Cap Value Fund Class K Shares commenced operations on December
31, 1996.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) Average commission rate paid per share of securities purchased and sold by
the Fund.
(e) Amount represents less than $0.01 per share.
<PAGE>
THE MUNDER FUNDS
NOTES TO FINANCIAL STATEMENTS, APRIL 30, 1997 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Munder Funds, Inc. (the "Company") 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
Company consists of fourteen portfolios currently in operation. Information
presented in these financial statements pertains only to Munder Micro-Cap Equity
Fund and Munder Small-Cap Value Fund (each a "Fund", and collectively, the
"Funds").
The Funds offer five classes of shares -- Class A, Class B, Class C, Class
K and Class Y Shares. Each class of shares has identical rights and privileges,
except with respect to the effect of the respective sales charges to each class,
the distribution fees borne by each class, expenses allocable exclusively to
each class, voting rights on matters affecting a single class and the exchange
privileges of each class. Each Fund is classified as a diversified management
investment company under the 1940 Act.
The preparation of financial statements in accordance with generally
accepted accounting principles 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 increases and
decreases in net assets from operations during the reporting period. 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: Securities traded on a recognized stock exchange or on
the NASDAQ National Market System ("NASDAQ") 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 as of the close of
business on the date of the valuation. Securities traded on a national
securities exchange or on NASDAQ for which there were no sales on the date of
valuation and securities traded on over-the-counter markets, including listed
securities for which the primary market is believed to be over-the-counter, are
valued at the mean between the most recently quoted bid and asked prices.
Restricted securities and securities and assets for which market quotations are
not readily available, are valued at fair value by the advisor, under the
supervision of the Board of 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 Board of Directors.
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
Fund's investment advisor, acting under the supervision of the Board of
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.
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 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.
Dividends and Distributions to Shareholders: Dividends from net investment
income are declared and paid at least annually by the 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.
Federal Income Taxes: Each Fund intends to continue 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.
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 investment 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:
FEES ON AVERAGE
DAILY NET ASSETS
----------------
Munder Micro-Cap Equity Fund.......................... 1.00%
Munder Small-Cap Value Fund........................... 0.75%
For the period ended April 30, 1997, the Advisor reimbursed expenses of
$34,479 and $31,655 for the Munder Micro-Cap Equity Fund and the Munder
Small-Cap Value Fund, respectively.
First Data Investor Services Group, Inc. ("First Data") (the
"Administrator"), serves as the Funds' administrator and assists in all aspects
of their administration and operations. First Data also serves as the Funds'
transfer agent and dividend disbursing agent ("Transfer Agent").
As compensation for its services, the Administrator and Transfer Agent are
entitled to receive fees, based on the aggregate average daily net assets of the
Funds and certain other investment portfolios that are advised by the Advisor
and for which First Data provides services, 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 with a $1.2 million minimum fee per annum in the aggregate for all
portfolios with respect to the Administrator; 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 with a $120,000 minimum fee per annum in the
aggregate for all portfolios with respect to the Transfer Agent. 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 and certain other investment
portfolios advised by the Advisor for which Comerica provides services, 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,
and 0.01% of net assets in excess of $600 million. Comerica also receives
certain transaction based fees. Comerica earned $13,666 for its services to the
Funds for the period ended April 30, 1997. Morgan Stanley Trust Company ("Morgan
Stanley") serves as the custodian of foreign securities for the Funds.
Each Director of the Company is paid an aggregate fee consisting of a
$20,000 annual retainer for services in such capacity plus $1,500 for each
meeting attended per year, plus out-of-pocket expenses incurred as a Board
member, for services provided as a Board member of the Company, Munder Funds
Trust, St. Clair Funds, Inc. and Munder Framlington Funds Trust. The Directors
are also reimbursed for any expenses incurred by them in connection with their
duties as Directors. No officer, director or employee of the Advisor, Comerica,
Morgan Stanley, FDI or First Data currently receives any compensation from THE
COMPANY.
3. SHAREHOLDER DISTRIBUTION AND SERVICE PLANS
FDI serves as the distributor of the Funds' shares. For the period ended
April 30, 1997, the Distributor received $29,831, representing commissions
(sales charges) on sales of Class A Shares of the Funds. For the period ended
April 30, 1997, the Distributor received no contingent deferred sales charges
from Class B and Class C Shares of the Funds.
The Company has adopted Service 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 each Fund 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 Company has also adopted a Shareholder Servicing Plan (the "Class K
Plan") for the Class K Shares of each Fund. Under the Class K Plans, the Funds
are permitted to enter into agreements with institutions that provide
shareholder services to their customers. For the period ended April 30, 1997,
the contractual rates, as a percentage of average daily net assets, under the
Plans and the Class K Plans are as follows:
CLASS A CLASS B CLASS C CLASS K
SHARES SHARES SHARES SHARES
12B-1 FEES 12B-1 FEES 12B-1 FEES SERVICE FEES
---------- ---------- ---------- ------------
Each Fund ... 0.25% 1.00% 1.00% 0.25%
4. SECURITIES TRANSACTIONS
For the period ended April 30, 1997, purchases and sales of securities
other than short-term investments and U.S. Government securities were as
follows:
Cost of Purchases Proceeds from Sales
Munder Micro-Cap Equity Fund ...... $ 1,677,551 $ 362,907
Munder Small-Cap Value Fund ....... 22,687,462 1,455,642
At April 30, 1997, 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:
Tax Basis Tax Basis
Unrealized Unrealized
Appreciation Depreciation
Munder Micro-Cap Equity Fund ......... $ 73,008 $117,989
Munder Small-Cap Value Fund .......... 471,819 888,948
Munder International Bond Fund
Portfolio of Investments, December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------- ----------
FOREIGN BONDS AND NOTES -- 88.0%
Australia -- 1.2%
Government -- 1.2%
<S> <C> <C> <C>
AUD 500,000 Queensland Treasury Corporation,
Government Bond, Series 5,
6.500% due 06/14/2005 $ 370,971
--------------
<CAPTION>
Belguim -- 3.5%
Government -- 3.5%
<S> <C> <C> <C>
BEL 28,000,000 Kingdom of Belgium, Series 10,
8.750% due 06/25/2002 1,041,633
--------------
<CAPTION>
Canada -- 8.5%
Government -- 8.5%
Government of Canada:
<S> <C> <C> <C>
CAD 850,000 Series A60,
6.500% due 09/01/1998 644,319
2,000,000 6.500% due 06/01/2004 1,489,541
500,000 8.000% due 06/01/2023 406,155
--------------
2,540,015
--------------
<CAPTION>
Denmark -- 2.2%
Government -- 2.2%
<S> <C> <C> <C>
DKK 3,500,000 Kingdom of Denmark,
8.000% due 05/15/2003 658,736
--------------
<CAPTION>
Finland -- 0.9%
Government -- 0.9%
<S> <C> <C> <C>
FIM 1,000,000 Republic of Finland,
9.500% due 03/15/2004 263,717
--------------
<CAPTION>
France -- 2.8%
Government -- 2.8%
<S> <C> <C> <C>
FRF 3,600,000 Government of France,
8.500% due 12/26/2012 845,586
--------------
<CAPTION>
Germany -- 20.1%
Finance -- 3.8%
<S> <C> <C> <C>
DEM 1,700,000 Suedwest LB Capital Markets,
5.000% due 02/08/1999 1,133,665
<CAPTION>
Government -- 12.2%
<S> <C> <C>
2,500,000 Federal Republic of Germany, Series 95,
6.500% due 10/14/2005 1,703,545
2,600,000 German Unity Fund,
8.000% due 01/21/2002 1,923,579
<CAPTION>
Supranational -- 4.1%
<S> <C> <C> <C>
DEM 1,750,000 International Bank of Reconstruction
& Development,
7.250% due 10/13/1999 1,231,602
--------------
5,992,391
--------------
<CAPTION>
Italy -- 8.8%
Government -- 8.8%
Government of Italy:
<S> <C> <C> <C>
ITL 1,800,000,000 10.000% due 08/01/2003 1,356,230
1,700,000,000 9.500% due 01/01/2005 1,259,591
--------------
2,615,821
--------------
<CAPTION>
Japan -- 17.9%
Finance -- 1.6%
<S> <C> <C> <C>
JPY 50,000,000 Development Bank of Japan,
5.000% due 10/01/1999 478,424
<CAPTION>
Government -- 16.3%
Government of Japan, 10-Year Issue:
<S> <C> <C>
225,000,000 Series 142,
6.700% due 09/20/2001 2,380,947
250,000,000 Series 161,
4.700% due 09/22/2003 2,482,946
--------------
5,342,317
--------------
<CAPTION>
Netherlands -- 4.3%
Government -- 4.3%
<S> <C> <C> <C>
NLG 1,900,000 Government of Netherlands, Series 2,
8.250% due 06/15/2002 1,272,679
--------------
<CAPTION>
Spain -- 3.4%
Government -- 3.4%
<S> <C> <C> <C>
ESP 110,000,000 Government of Spain,
10.500% due 10/30/2003 1,030,056
--------------
<CAPTION>
Sweden -- 2.4%
Government -- 2.4%
<S> <C> <C> <C>
SEK 5,000,000 Government of Sweden, Series 1038,
6.500% due 10/25/2006 722,158
--------------
<CAPTION>
United Kingdom -- 12.0%
Finance -- 4.4%
<S> <C> <C> <C>
GBP 750,000 General Electric Capital Corporation,
7.500% due 12/01/1998 1,293,310
<CAPTION>
GBP Government -- 3.1%
<S> <C> <C>
525,000 United Kingdom Treasury,
8.000% due 06/07/2021 936,991
<CAPTION>
Supranational -- 4.5%
<S> <C> <C>
750,000 European Investment Bank,
8.500% due 11/06/2001 1,342,171
--------------
3,572,472
--------------
<S> <C>
TOTAL FOREIGN BONDS AND NOTES
(Cost $26,003,534) 26,268,552
--------------
<CAPTION>
GOVERNMENT AGENCY OBLIGATIONS -- 6.1%
<S> <C> <C> <C>
JPY 130,000,000 Federal National Mortgage Association,
Global Bond,
2.000% due 12/20/1999 1,150,963
DEM 1,000,000 Tennessee Valley Authority, Global Bond,
6.375% due 09/18/2006 665,237
--------------
<S> <C>
TOTAL GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,841,996) 1,816,200
--------------
<CAPTION>
REPURCHASE AGREEMENT -- 3.8%
(Cost $1,122,000)
<S> <C> <C> <C>
U.S. $1,122,000 Agreement with Morgan (J.P.) & Company,
5.750% dated 12/31/1996 to be repurchased
at $1,122,358 on 01/02/1997,
collateralized by $979,000 U.S.
Treasury Bond, 8.125% due 05/15/2020
(value $1,155,594) 1,122,000
--------------
<S> <C> <C>
TOTAL INVESTMENTS (Cost $28,967,530*) 97.9% 29,206,752
OTHER ASSETS AND LIABILITIES (Net) 2.1 628,077
----- --------------
NET ASSETS 100.0% $ 29,834,829
===== ==============
<FN>
- ----------------
* Aggregate cost for Federal tax purposes.
ABBREVIATIONS:
AUD -- Australian Dollar
BEL -- Belgian Francs
CAD -- Canadian Dollar
German Deutsche
DEM -- Mark
DKK -- Danish Krone
ESP -- Spanish Peseta
FIM -- Finnish Markka
FRF -- French Franc
Great British
GBP -- Pound
ITL -- Italian Lira
JPY -- Japanese Yen
Netherlands
NLG -- Guilder
SEK -- Swedish Krona
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Statements of Assets and Liabilities, Period Ended December 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INCOME FUNDS
------------
Munder
International
Bond
Fund
-------------
<S> <C>
ASSETS:
Investments, at value
See accompanying schedules:
Securities ............................. $28,084,752
Repurchase Agreements .................. 1,122,000
-----------
Total Investments .......................... 29,206,752
Cash ....................................... 974
Interest receivable ........................ 613,355
Dividends receivable ....................... --
Receivable for investment securities sold .. --
Receivable for Fund shares sold ............ --
Unamortized organization cost .............. --
Prepaid expenses ........................... 45,792
------------
Total Assets ......................... 29,866,873
------------
LIABILITIES:
Payable for Fund shares redeemed ........... --
Investment advisory fee payable ............ 23,535
Administration fee payable ................. 2,756
Shareholder servicing fees payable ......... --
Distribution fees payable .................. 2
Transfer agent fee payable ................. 818
Custodian fees payable ..................... 1,161
Legal and audit fees payable ............... 2,191
Due to custodian ........................... --
Accrued Trustees'/Directors' fees and
expenses ................................. 106
Accrued expenses and other payables ........ 1,475
-----------
Total Liabilities .................... 32,044
-----------
NET ASSETS ................................. $29,834,829
===========
Investments, at cost ....................... $28,967,530
===========
<FN>
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Statements of Assets and Liabilities, Period Ended December 31, 1996
(Unaudited)
(Continued)
<TABLE>
<CAPTION>
INCOME FUNDS
-------------
Munder
International
Bond
Fund
-------------
<S> <C>
NET ASSETS consist of:
Undistributed net investment
income/(distributions in excess of net
investment income) ......................................... $ 31,879
Accumulated net realized gain/(loss) on investments sold ..... 140,040
Net unrealized appreciation/(depreciation) of investments .... 234,131
Par value .................................................... 29,354
Paid-in capital in excess of par value ....................... 29,399,425
------------
$ 29,834,829
============
NET ASSETS:
Class A Shares ............................................... $ 14,531
============
Class B Shares ............................................... --
============
Class C Shares ............................................... --
============
Class K Shares ............................................... --
============
Class Y Shares ............................................... $ 29,820,298
============
SHARES OUTSTANDING:
Class A Shares ............................................... 1,430
============
Class B Shares ............................................... --
============
Class C Shares ............................................... --
============
Class K Shares ............................................... --
============
Class Y Shares ............................................... 2,934,068
============
CLASS A SHARES:
Net asset value and redemption price per share ............... $ 10.16
============
Maximum sales charge ......................................... 4.00%
Maximum offering price per share ............................. $ 10.58
============
CLASS B SHARES:
Net asset value and offering price per share* ................ N/A
==========
CLASS C SHARES:
Net asset value and offering price per share* ................ N/A
==========
CLASS K SHARES:
Net asset value, offering price and redemption price per share N/A
==========
CLASS Y SHARES:
Net asset value, offering price and redemption price per share $ 10.16
=============
<FN>
* Redemption price per share is equal to Net Asset Value less any applicable
contingent deferred sales charge ("CDSC").
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Statements of Operations, Period Ended December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
INCOME FUNDS
-------------
Munder
International
Bond
Fund(a)
-------------
<S> <C>
INVESTMENT INCOME:
Interest (Net of foreign withholding taxes of $6,444 for
the Munder International Bond Fund) ..................... $ 327,368
Dividends ................................................. --
----------
Total investment income ........................... 327,368
----------
EXPENSES:
Distribution and shareholder servicing fees:
Class A Shares .......................................... 6
Class B Shares .......................................... --
Class C Shares .......................................... --
Shareholder servicing fees:
Class K Shares .......................................... --
Investment advisory fee ................................... 34,212
Administration fee ........................................ 7,753
Transfer agent fee ........................................ 1,208
Custodian fees ............................................ 1,161
Trustees'/Directors' fees and expenses .................... 253
Amortization of organization costs ........................ --
Registration and filing fees .............................. 9,148
Other ..................................................... 4,408
----------
Total Expenses .................................... 58,149
Fees waived by investment advisor ......................... --
----------
Net Expenses ...................................... 58,149
----------
NET INVESTMENT INCOME ..................................... 269,219
----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Security transactions ................................... 159,993
Forward foreign exchange contracts ...................... (119,346)
Foreign currency transactions ........................... 99,393
Net change in unrealized appreciation/(depreciation) of:
Securities .............................................. 239,222
Foreign currency and net other assets ................... (5,091)
----------
Net realized and unrealized gain on investments ........... 374,171
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS .............................................. $ 643,390
==========
<FN>
(a) The Munder International Bond Fund commenced operations on October 2,
1996.
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Statements of Changes in Net Assets, Period Ended December 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
INCOME FUNDS
-------------
Munder
International
Bond
Fund(a)
-------------
<S> <C>
Net investment income ..................................... $ 269,219
Net realized gain/(loss) on investments sold during the
period .................................................. 140,040
Net change in unrealized appreciation of investments during
the period .............................................. 234,131
------------
Net increase in net assets resulting from operations ...... 643,390
Dividends to shareholders from net investment income:
Class A Shares .......................................... (111)
Class B Shares .......................................... --
Class C Shares .......................................... --
Class K Shares .......................................... --
Class Y Shares .......................................... (237,229)
Distributions to shareholders from net realized gains:
Class A Shares .......................................... --
Class B Shares .......................................... --
Class C Shares .......................................... --
Class K Shares .......................................... --
Class Y Shares .......................................... --
Net increase/(decrease) in net assets from Fund
share transactions:
Class A Shares .......................................... 14,441
Class B Shares .......................................... --
Class C Shares .......................................... --
Class K Shares .......................................... --
Class Y Shares .......................................... 29,414,338
------------
Net increase/(decrease) in net assets ..................... 29,834,829
NET ASSETS:
Beginning of period ....................................... --
------------
End of period ............................................. $ 29,834,829
============
Undistributed net investment income/(distributions
in excess of net investment income)....................... $ 31,879
============
<FN>
(a) The Munder International Bond Fund commenced operations on October 2, 1996.
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Statements of Changes - Capital Stock Activity, Period Ended December 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
INCOME FUNDS
------------
Munder
International
Bond
Fund(a)
-------------
<S> <C>
Amount
Class A Shares:
Sold ....................................... $ 14,329
Issued as reinvestment of dividends ........ 112
Redeemed ................................... --
-----------
Net increase ............................... $ 14,441
===========
Class B Shares:
Sold ....................................... --
Issued as reinvestment of dividends ........ --
Redeemed ................................... --
-----------
Net increase ............................... --
===========
Class C Shares:
Sold ....................................... --
Issued as reinvestment of dividends ........ --
Redeemed ................................... --
-----------
Net increase ............................... --
===========
Class K Shares:
Sold ....................................... --
Issued as reinvestment of dividends ........ --
Redeemed ................................... --
-----------
Net increase/(decrease) .................... --
===========
Class Y Shares:
Sold ....................................... $29,436,263
Issued as reinvestment of dividends ........ 5,749
Redeemed ................................... (27,674)
-----------
Net increase/(decrease) .................... $29,414,338
===========
<FN>
(a) The Munder International Bond Fund Class A Shares and Class Y Shares
commenced operations on October 17, 1996 and October 2, 1996,
respectively.
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Statements of Changes - Capital Stock Activity, Period Ended December 31, 1996
(Unaudited)
(Continued)
<TABLE>
<CAPTION>
INCOME FUNDS
-------------
Munder
International
Bond
Fund(a)
-------------
<S> <C>
Shares
Class A Shares:
Sold ....................................... 1,419
Issued as reinvestment of dividends ........ 11
Redeemed ................................... --
----------
Net increase ............................... 1,430
==========
Class B Shares:
Sold ....................................... --
Issued as reinvestment of dividends ........ --
Redeemed ................................... --
----------
Net increase ............................... --
==========
Class C Shares:
Sold ....................................... --
Issued as reinvestment of dividends ........ --
Redeemed ................................... --
----------
Net increase ............................... --
==========
Class K Shares:
Sold ....................................... --
Issued as reinvestment of dividends ........ --
Redeemed ................................... --
----------
Net increase/(decrease) .................... --
==========
Class Y Shares:
Sold ....................................... 2,936,217
Issued as reinvestment of dividends ........ 569
Redeemed ................................... (2,718)
----------
Net increase/(decrease) .................... 2,934,068
==========
<FN>
(a) The Munder International Bond Fund Class A Shares and Class Y Shares
commenced operations on October 17, 1996 and October 2, 1996,
respectively.
See Notes to Financial Statements.
</TABLE>
Munder International Bond Fund
Financial Highlights, For a Share Outstanding Throughout The Period(e)
<TABLE>
<CAPTION>
A Shares Y Shares
------------- --------------
Period Period
Ended Ended
12/31/96(a,d) 12/31/96 (a,d)
(Unaudited) (Unaudited)
------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ......................... $ 9.98 $ 10.00
------ ---------
Income from investment operations:
Net investment income ........................................ 0.08 0.10
Net realized and unrealized gain on investments .............. 0.18 0.14
------ ---------
Total from investment operations ............................. 0.26 0.24
------ ---------
Less distributions:
Dividends from net investment income ......................... (0.08) (0.08)
------ ---------
Total distributions .......................................... (0.08) (0.08)
------ ---------
Net asset value, end of period ............................... $10.16 $ 10.16
====== =========
Total return (b) ............................................. 2.59% 2.43%
====== =========
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ......................... $ 15 $29,820
Ratio of operating expenses to average net assets ............ 1.10%(c) 0.85%(c)
Ratio of net investment income to average net assets ......... 3.68%(c) 3.93%(c)
Portfolio turnover rate ...................................... 31% 31%
Ratio of operating expenses to average net assets without
waivers .................................................... 1.10%(c) 0.85%(c)
Net investment income per share without waivers .............. $ 0.08 $ 0.10
<FN>
(a) The Munder International Bond Fund Class A Shares and Class Y Shares
commenced operations on October 17, 1996 and October 2, 1996,
respectively.
(b) Total return represents aggregate total return for the period indicated
and does not reflect any applicable sales charges.
(c) Annualized.
(d) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period since
the use of the undistributed net investment income method did not accord
with the results of operations.
(e) The Fund is authorized to issue Class B Shares and Class C Shares. As of
December 31, 1996, the Fund had not commenced selling Class B Shares and
Class C Shares.
See Notes to Financial Statements.
</TABLE>
The Munder Funds
Notes To Financial Statements, December 31, 1996 (Unaudited)
1. Organization and 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 24 portfolios currently in
operation. Information presented in these financial statements pertains only
to the Income and the Money Market Funds set forth below (each a "Fund", and
collectively, the "Munder Funds"). The financial statements for the remaining
funds of MFI and MFT are presented under separate covers.
MFI:
Income Fund
Munder International Bond Fund
Money Market Fund
Munder Money Market Fund
MFT:
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 Cash Investment Fund
Munder Tax-Free Money Market Fund
Munder U.S. Treasury Money Market Fund
The Income Funds offer five classes of shares -- Class A, Class B,
Class C, 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 offers four classes of shares -- Class A, Class B, Class C
and Class Y Shares. The Financial Highlights of Class K Shares of the Munder
Funds are presented in a separate semi-annual report. Each Fund is classified
as a diversified management investment company under the 1940 Act, other than
the Munder Tax-Free Intermediate Bond Fund, Munder Michigan Triple Tax-Free
Bond Fund and Munder International Bond Fund which are classified as
non-diversified.
The preparation of financial statements in accordance with generally
accepted accounting principles 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 increases and
decreases in net assets from operations during the reporting period. 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 Income Funds, securities
(including financial futures, if any) traded on a recognized stock exchange
or on the NASDAQ National Market System ("NASDAQ") 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 as of the
close of business on the date of the valuation. Securities traded on a
national securities exchange or on NASDAQ for which there were no sales on
the date of valuation and securities traded on
over-the-counter markets, including listed securities for which the primary
market is believed to be over-the-counter, are valued at the mean between the
most recently quoted bid and asked prices. Restricted securities and
securities and assets for which market quotations are not readily available,
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, unless
the Boards of Directors and Trustees determines that such valuation does not
constitute fair value at that time. Under this method, such securities are
valued initially at cost on the date of purchase (or on the 61st day before
maturity). 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. 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 seeks to maintain a net asset value per share of $1.00.
Forward Foreign Currency Contracts: The Munder International Bond 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
Fund may use forward foreign currency contracts to facilitate transactions in
foreign securities and to manage the Funds 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 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
Bond 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.
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 Funds' investment advisor, 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.
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 monthly by the Income Funds
(excluding the Munder International Bond Fund for which dividends are
declared and paid quarterly); 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, 1996, 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 continue 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.
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
Average
Daily Net
Assets
--------------
<S> <C>
The Income Funds .................................... 0.50%
The Money Market Funds (excluding Munder Money Market
Fund) ............................................. 0.35%
Munder Money Market Fund ............................ 0.40%
</TABLE>
The Advisor voluntarily waived a portion of its advisory fees for the
Munder Michigan Triple Tax-Free Bond Fund, payable by the Fund, for the
period ended December 31, 1996, as reflected in the Statement of Operations.
First Data Investor Services Group, Inc. ("First Data") (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 Funds' transfer agent and dividend disbursing agent ("Transfer
Agent").
As compensation for its services, the Administrator and Transfer Agent
are entitled to receive a fee, based on the aggregate average daily net
assets of the Funds and certain other investment portfolios that are advised
by the Advisor and for which First Data provides services, 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 with respect to the Administrator; and
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 with
respect to the Transfer Agent. Administration fees payable by the Funds and
certain other investment portfolios advised by the Advisor are subject to a
minimum annual fee of $1.2 million to be allocated among each series and
class thereof. 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 and certain other
investment portfolios advised by the Advisor for which Comerica provides
services, computed daily and payable monthly at an annual rate of 0.03% of
the first $100 million of average daily net assets, 0.02% of the next $500
million of net assets, and 0.01% of net assets in excess of $600 million.
Comerica also receives certain transaction based fees. Comerica earned
$209,113 for its services to the Income and Money Market Funds for the period
ended December 31, 1996. Prior to the end of the fourth quarter of 1996,
Boston Safe Deposit and Trust Company served as the custodian of foreign
securities. Morgan Stanley Trust Company ("Morgan Stanley") currently serves
as the custodian of foreign securities for the Munder Funds.
From MFI and MFT and other investment companies that are advised by the
Advisor of which they are a director or trustee, each Trustee of MFT and each
Director of MFI is paid an aggregate fee of $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, Morgan Stanley, FDI
or First Data currently receives any compensation from MFI or MFT.
3. Shareholder Distribution and Service Plans
FDI serves as the distributor of the Munder Funds' shares. For the
period ended December 31, 1996, the Distributor received $5,716, representing
commissions (sales charges) on sales of Class A Shares of the Income Funds.
For the period ended December 31, 1996, the Distributor received $447 in
contingent deferred sales charges from Class B and Class C Shares of the
Income Funds.
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 Class B and Class C 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, 1996, the
effective 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 Class B Class C Class K
Shares Shares Shares Shares
12b-1 Fees 12b-1 Fees 12b-1 Fees Service Fees
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
The Income Funds .................................... 0.25% 1.00% 1.00% 0.25%
The Money Market Funds:
Munder Cash Investment Fund ......................... 0.25% N/A N/A 0.15%
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>
4. Securities Transactions
For the period ended December 31, 1996, purchases and sales of securities
other than short-term investments and U.S. Government securities were as
follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
----------- ------------
<S> <C> <C>
Munder Bond Fund .................................... $100,935,350 $ 97,608,908
Munder Intermediate Bond Fund ....................... 378,144,592 454,924,410
Munder International Bond Fund ...................... 34,148,774 6,372,747
Munder U.S. Government Income Fund .................. 13,205,168 20,816,069
Munder Michigan Triple Tax-Free Bond Fund ........... 7,109,267 3,543,181
Munder Tax-Free Bond Fund ........................... 33,910,090 31,324,738
Munder Tax-Free Intermediate Bond Fund .............. 20,984,088 51,264,521
</TABLE>
For the period ended December 31, 1996, purchases and sales of U.S.
Government securities, excluding short-term investments were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
----------- ------------
<S> <C> <C>
Munder Bond Fund .................................... $ 74,219,552 $ 76,182,248
Munder Intermediate Bond Fund ....................... 564,481,101 556,888,757
Munder U.S. Government Income Fund .................. 173,981,588 130,795,177
</TABLE>
At December 31, 1996, 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:
<TABLE>
<CAPTION>
Tax Basis Tax Basis
Unrealized Unrealized
Appreciation Depreciation
-------------- --------------
<S> <C> <C>
Munder Bond Fund .................................... $ 975,684 $ 1,329,374
Munder Intermediate Bond Fund ....................... 1,983,361 2,035,270
Munder International Bond Fund ...................... 557,840 318,618
Munder U.S. Government Income Fund .................. 2,425,252 1,989,447
Munder Michigan Triple Tax-Free Bond Fund ........... 724,679 226,029
Munder Tax-Free Bond Fund ........................... 9,766,300 90,856
Munder Tax-Free Intermediate Bond Fund .............. 9,096,003 454,658
</TABLE>
5. Geographic Concentration
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 International Bond Fund primarily invests 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.
6. Organizational Costs
Expenses incurred in connection with the organization of the Funds,
including the fees and expenses of registering and qualifying their 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.
7. Capital Loss Carryforwards
As determined at June 30, 1996, the following Funds had available for
Federal income tax purposes, unused capital losses as follows:
<TABLE>
<CAPTION>
Fund Amount Expiration
----- ------- ----------
<S> <C> <C>
Munder Bond Fund .................................... $ 857,708 2002
3,450,654 2003
Munder Intermediate Bond Fund ....................... 1,509,730 2002
10,362,763 2003
Munder Michigan Triple Tax-Free Bond Fund ........... 45,660 2003
Munder Cash Investment Fund ......................... 3,561 1999
1,650 2000
Munder Tax-Free Money Market Fund ................... 14,500 1998
20,091 1999
57,257 2000
39,684 2001
15,088 2002
12,291 2003
</TABLE>
<PAGE>
