<PAGE> 1
REPORT FROM THE INVESTMENT ADVISER
- --------------------------------------------------------------------------------
To Our Shareholders:
We are pleased to send you this semiannual report, which covers the six months
ended June 30, 1999.
The Correspondent Cash Reserves Money Market and Tax Free Portfolios are
open-end, diversified money market funds that seek to provide investors with a
high level of current income, while preserving capital and maintaining
liquidity. Income provided by the Tax Free Portfolio is intended to be exempt
from federal income tax.*
The Money Market Portfolio, which exceeds $1.63 billion in assets under
management (up from $1.38 billion six months ago), invests in a diversified
selection of very high quality, short-term money market obligations -- such as
U.S. Treasury bills, short-term corporate obligations and commercial paper. The
Tax Free Portfolio invests in a wide variety of short-term, tax-exempt
securities issued by state, county and municipal authorities. Both Portfolios
may invest in instruments rated in either of the top two rating categories
established by nationally recognized credit rating agencies.**
Following this letter, you will find a pie-chart analysis of the Portfolios, as
well as their performance for the six-month period. A schedule of the
Portfolios' investments is included in the financial report that follows the
performance table. All investments are actively monitored to ensure that they
maintain their quality status and suitability.
ECONOMIC OVERVIEW
When we last wrote to you in January, there were many reasons to be concerned
about the global economic situation. Asia, Latin America and Russia all had
experienced varying degrees of upheaval throughout 1998. The near-catastrophic
collapse of a major hedge fund, Long-Term Capital Management, seemed to threaten
the stability of the world's fixed-income markets. Even relatively good news on
the domestic front made many pundits and investors fidgety; the U.S. economy had
been humming along for such an extended period of time -- nearly eight years for
the most recent recovery, with consistently low inflation for much of that
time -- that popular opinion held that the economic bubble simply had to burst.
At the very least, or so the sentiment went, it didn't seem unreasonable to
expect the economy to begin to sputter, and inflation to heat up.
That was the conjecture. Looking back on the six months that have passed, we
have a different story to tell: Russia and Latin America are still cause for
concern. The Far East continues to rise from the abyss, led by Japan -- which
has instituted some long-needed economic reforms; the question remains whether
the Japanese government and people have the will to keep reforms on track. The
hedge fund failure notwithstanding, bond markets throughout the world survived,
though interest rates in the U.S. rose sharply.
Most impressive of all, the domestic economy kept pace. Gross domestic product
(GDP) is solid, productivity gains are high, consumers are spending money and
the employment picture remains positive. What is curious about this last point
is that, historically, wage pressures would normally begin to spark a fresh wave
of inflation. But that has not been the case, as the rate of inflation has
remained benign. If the economy is not quite in the "Goldilocks" mode of the
last few years -- not too hot, not too cold -- what we are seeing is still a
fairly close likeness.
INTEREST RATES: SELF-FULFILLING PROPHECY?
From last September through the end of the year, the Federal Reserve lowered the
fed funds rate -- the rate banks charge one another for short-term
loans -- three times.
<PAGE> 2
REPORT FROM THE INVESTMENT ADVISER -- (continued)
- --------------------------------------------------------------------------------
Throughout the most recent six-month period, however, investors and analysts
became increasingly convinced that the Fed would start to tighten credit by
raising rates. Consequently, rates all along the yield curve -- including the
short end, where our Portfolios operate -- rose in anticipation. Not
surprisingly, the Fed did raise rates on June 30, the last day of the period.
At the end of the first quarter and into the second quarter, we began to shorten
the Portfolios' average weighted maturities, in anticipation of the Fed's move.
When the Fed took action, we were not surprised. In our view, it was a
preemptive move that the Fed took in order to ward off inflationary pressures
down the line -- a classic Fed posture. To date, the 25 basis points by which
the Fed raised rates were absorbed very easily into the market price of
fixed-income securities.
As of June 30, 1999, the Money Market Portfolio's average weighted maturity was
58 days, compared to 64 days at the end of December 1998, the time of our last
report.
As of June 30, 1999, the Tax Free Portfolio maintained an average weighted
maturity of 40 days, compared to 45 days at the end of December 1998. Both
Portfolios continue to be managed to provide safety, convenience and liquidity
to investors.
OUR OUTLOOK FOR THE REST OF 1999
Unless economic news is unexpectedly hot in the growth and employment arenas, we
expect the Fed to be "on hold" at its August meeting, and it is our opinion the
Fed will remain on hold until the next meeting. Policymakers will probably want
to wait out any complications that may arise with the Year 2000 bug; no one is
absolutely certain whether there could be many problems or none.
The interest-rate environment has calmed down somewhat. However, because
interest rates have been volatile this year and headed to the upside, we feel
it's prudent to keep portfolio maturity a bit shorter than in recent months.
- ---------------
* The Tax Free Money Market Portfolio's income may be subject to certain state
and local taxes and, depending on your tax status, the federal alternative
minimum tax.
** An investment in either Portfolio is neither insured nor guaranteed by the
FDIC or any other government agency. Although each Portfolio strives to
maintain the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Portfolios.
<PAGE> 3
REPORT FROM THE INVESTMENT ADVISER -- (continued)
- --------------------------------------------------------------------------------
Portfolio Composition*
<TABLE>
TAX FREE MONEY MARKET PORTFOLIO
<CAPTION>
COMMERCIAL PAPER MUNICIPAL BONDS
- ---------------- ---------------
<S> <C>
17.9% 82.1%
</TABLE>
<TABLE>
MONEY MARKET PORTFOLIO
<CAPTION>
U.S.
SHORT-TERM GOVERNMENT
COMMERCIAL CORPORATE CERTIFICATES OF AND AGENCY BANKERS REPURCHASE
BANK NOTES PAPER OBLIGATIONS DEPOSIT OBLIGATIONS ACCEPTANCE AGREEMENTS
- ---------- ---------- ----------- --------------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
5.7% 57.0% 4.5% 17.2% 13.2% 1.8% 0.6%
</TABLE>
*The composition of the Portfolios is subject to change. Percentages are based
on total investments.
PERFORMANCE
As of June 30, 1999, the 7-day and 30-day yields for the Portfolios were as
follows:
<TABLE>
<CAPTION>
7-DAY 30-DAY
YIELD YIELD
----- ------
<S> <C> <C>
Money Market Portfolio**........................... 4.14% 4.11%
Tax Free Money Market Portfolio**.................. 2.82% 2.53%
</TABLE>
** For the current 7-day yield as of June 30, 1999, the Portfolio's service
contractors voluntarily waived a portion of their fees. If the service
contractors had not waived a portion of their fees, the 7-day yield shown
would have been 2.61% for the Tax Free Money Market Portfolio. These
voluntary waivers may be modified or terminated at any time, which would
reduce the performance. Yields will vary with market conditions, and past
performance is not a guarantee of future results.
An investment in either Portfolio is neither insured nor guaranteed by the
FDIC or any other government agency. Although each Portfolio strives to
maintain the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Portfolios.
<PAGE> 4
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 13.1%
U.S. TREASURY -- 0.6%
U.S. Treasury Bill........................... AAA/Aaa** 4.23% 10/14/99 $10,000,000 $ 9,876,625
--------------
AGENCY -- 12.5%
Federal Farm Credit Bank..................... AAA/Aaa** 5.59* 10/1/99 10,000,000 10,000,000
Federal Home Loan Bank....................... AAA/Aaa** 4.92 10/27/99 5,000,000 5,000,000
Federal Home Loan Bank....................... AAA/Aaa** 5.00 10/27/99 6,000,000 6,000,000
Federal Home Loan Bank....................... AAA/Aaa** 5.00 12/29/99 10,000,000 10,000,000
Federal Home Loan Bank....................... AAA/Aaa** 4.85 1/19/00 14,500,000 14,500,000
Federal Home Loan Bank....................... AAA/Aaa** 5.05 3/1/00 7,000,000 7,000,000
Federal Home Loan Bank....................... AAA/Aaa** 5.06 3/9/00 15,800,000 15,800,000
Federal Home Loan Bank....................... AAA/Aaa** 5.32* 4/7/00 10,000,000 9,998,464
Federal Home Loan Bank....................... AAA/Aaa** 5.40* 4/24/00 15,000,000 14,995,243
Federal Home Loan Mortgage Corp.............. AAA/Aaa** 5.39* 4/14/00 10,000,000 9,998,426
Student Loan Marketing Association........... AAA/Aaa** 5.64* 11/12/99 15,000,000 15,000,000
Student Loan Marketing Association........... AAA/Aaa** 5.54* 11/24/99 15,000,000 14,999,400
Student Loan Marketing Association........... AAA/Aaa** 5.54* 12/16/99 15,000,000 15,000,000
Student Loan Marketing Association........... AAA/Aaa** 5.00 1/14/00 6,500,000 6,500,000
Student Loan Marketing Association........... AAA/Aaa** 5.54* 2/3/00 10,000,000 9,998,846
Student Loan Marketing Association........... AAA/Aaa** 5.37* 3/23/01 15,000,000 14,995,080
Student Loan Marketing Association........... AAA/Aaa** 4.81* 2/25/00 25,000,000 24,993,616
--------------
204,779,075
--------------
Total U.S. Government and Agency Obligations
(Cost $214,655,700).......................... 214,655,700
--------------
BANK NOTES -- 5.6%
DOMESTIC -- 5.3%
First National Bank of Chicago............... P-1/A-1+ 5.18 3/15/00 7,000,000 6,997,142
First Tennessee Bank, N.A. -- Memphis........ P-1/A-1 5.10 1/14/00 6,000,000 6,000,000
First Tennessee Bank, N.A. -- Memphis........ P-1/A-1 5.21 3/8/00 10,000,000 10,000,000
First Tennessee Bank, N.A. -- Memphis........ P-1/A-1 5.41* 4/6/00 15,000,000 15,000,000
First Tennessee Bank, N.A. -- Memphis........ P-1/A-1 5.45* 4/13/00 10,000,000 10,000,000
Harris Trust & Savings Bank.................. P-1/A-1+ 5.00 2/1/00 7,000,000 7,000,000
</TABLE>
Continued
4
<PAGE> 5
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
BANK NOTES, CONTINUED:
DOMESTIC, CONTINUED:
Harris Trust & Savings Bank.................. P-1/A-1+ 5.05% 2/14/00 $12,000,000 $ 11,995,353
KeyBank, N.A................................. P-1/A-1 5.65 6/26/00 10,000,000 9,993,367
NationsBank N.A.............................. P-1/A-1+ 5.00 1/6/00 10,000,000 9,999,001
--------------
86,984,863
--------------
YANKEE -- 0.3%
Westpac Banking Corp. Ltd...................... P-1/A-1+ 5.20 3/1/00 5,000,000 4,997,748
--------------
Total Bank Notes (Cost $91,982,611)............ 91,982,611
--------------
BANKERS ACCEPTANCE -- 1.8%
YANKEE -- 1.8%
Toronto-Dominion Holdings USA, Inc........... P-1/A-1+ 5.00 7/21/99 29,700,000 29,617,500
--------------
Total Bankers Acceptance (Cost $29,617,500).... 29,617,500
--------------
CERTIFICATES OF DEPOSIT -- 17.1%
YANKEE -- 17.1%
ABN AMRO Bank, N.V........................... P-1/A-1+ 5.66 7/6/99 5,000,000 5,000,117
Bank of Nova Scotia.......................... P-1/A-1+ 5.56 8/25/99 10,000,000 9,999,422
Bank of Nova Scotia.......................... P-1/A-1+ 5.05 1/14/00 5,700,000 5,699,703
Barclays Bank PLC............................ P-1/A-1+ 4.89* 3/15/00 15,000,000 14,993,656
Bayerische Hypo-und Vereinsbank AG........... P-1/A-1+ 5.15 4/28/00 10,000,000 9,995,956
Canadian Imperial Bank of Commerce........... P-1/A-1+ 5.20 2/29/00 10,000,000 10,002,683
Canadian Imperial Bank of Commerce........... P-1/A-1+ 5.10 4/12/00 6,000,000 5,997,735
National Bank of Canada...................... P-1/A-1 5.70 7/20/99 7,000,000 6,999,819
National Westminster Bank PLC................ P-1/A-1+ 4.98 1/7/00 15,000,000 14,998,441
Rabobank Nederland........................... P-1/A-1+ 4.99 2/7/00 14,000,000 13,994,552
Rabobank Nederland........................... P-1/A-1+ 5.08 4/12/00 6,000,000 5,998,188
Royal Bank of Canada......................... P-1/A-1+ 4.90* 3/2/00 15,000,000 14,995,482
Royal Bank of Canada......................... P-1/A-1+ 5.27 3/31/00 4,000,000 3,998,989
Royal Bank of Canada......................... P-1/A-1+ 4.89* 5/4/00 20,000,000 19,991,585
Societe Generale............................. P-1/A-1+ 5.73 7/2/99 7,000,000 6,999,996
Svenska Handelsbanken........................ P-1/A-1 5.69 7/23/99 4,700,000 4,700,531
</TABLE>
Continued
5
<PAGE> 6
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT, CONTINUED:
YANKEE, CONTINUED:
Svenska Handelsbanken........................ P-1/A-1 5.60% 8/20/99 $12,000,000 $ 11,999,206
Svenska Handelsbanken........................ P-1/A-1 4.98 2/4/00 6,000,000 5,999,308
Svenska Handelsbanken........................ P-1/A-1 5.06 2/16/00 5,000,000 4,999,468
Svenska Handelsbanken........................ P-1/A-1 5.12 2/22/00 5,000,000 4,999,689
Svenska Handelsbanken........................ P-1/A-1 5.17 2/25/00 8,000,000 7,998,486
Svenska Handelsbanken........................ P-1/A-1 5.28 3/3/00 8,000,000 7,996,807
Svenska Handelsbanken........................ P-1/A-1 5.16 4/4/00 6,000,000 5,999,120
Svenska Handelsbanken........................ P-1/A-1 5.10 4/10/00 6,000,000 5,998,651
Svenska Handelsbanken........................ P-1/A-1 5.28 5/22/00 10,000,000 9,996,565
Toronto-Dominion Bank........................ P-1/A-1+ 5.68 8/3/99 7,000,000 6,999,757
Toronto-Dominion Bank........................ P-1/A-1+ 4.99 1/7/00 10,000,000 9,999,498
Toronto-Dominion Bank........................ P-1/A-1+ 4.89* 4/12/00 18,000,000 17,992,417
Toronto-Dominion Bank........................ P-1/A-1+ 5.06 4/17/00 7,000,000 6,996,774
Westpac Banking Corp. Ltd.................... P-1/A-1+ 5.18 3/17/00 10,000,000 9,998,285
Westpac Banking Corp. Ltd.................... P-1/A-1+ 5.17 3/31/00 7,000,000 6,999,203
--------------
Total Certificates of Deposit (Cost
$279,340,089)................................ 279,340,089
--------------
COMMERCIAL PAPER -- 56.9%
ASSET BACKED -- BANKING -- 1.5%
Atlantis One Funding......................... P-1/A-1+ 4.95 9/1/99 10,000,000 9,914,750
Atlantis One Funding......................... P-1/A-1+ 4.82 9/20/99 10,000,000 9,891,550
Woodstreet Funding Corp...................... P-1/A-1 4.81 7/13/99 4,045,000 4,038,515
--------------
23,844,815
--------------
ASSET BACKED -- FINANCE -- 0.9%
Beta Finance, Inc.(b)........................ P-1/A-1+ 5.21 9/28/99 15,000,000 14,806,796
--------------
ASSET BACKED -- MISCELLANEOUS -- 14.4%
Asset Securitization Cooperative Corp. (b)... P-1/A-1+ 5.50 7/1/99 25,000,000 25,000,000
Enterprise Funding Corp. (b)................. P-1/A-1+ 4.89 7/8/99 13,557,000 13,544,110
Enterprise Funding Corp. (b)................. P-1/A-1+ 4.90 7/19/99 11,977,000 11,947,656
Enterprise Funding Corp. (b)................. P-1/A-1+ 5.05 7/20/99 14,536,000 14,497,258
Falcon Asset Securitization Corp. (b)........ P-1/A-1 5.03 7/13/99 20,000,000 19,966,467
Falcon Asset Securitization Corp. (b)........ P-1/A-1 5.10 7/27/99 10,760,000 10,720,367
</TABLE>
Continued
6
<PAGE> 7
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER, CONTINUED:
ASSET BACKED -- MISCELLANEOUS, CONTINUED:
Preferred Receivables Funding Corp. (b)...... P-1/A-1 4.82% 7/6/99 $20,000,000 $ 19,986,611
Preferred Receivables Funding Corp. (b)...... P-1/A-1 4.85 7/13/99 15,000,000 14,975,750
Preferred Receivables Funding Corp. (b)...... P-1/A-1 5.03 7/19/99 15,330,000 15,291,445
Quincy Capital Corp. (b)..................... P-1/A-1+ 4.87 8/4/99 15,000,000 14,931,008
Receivables Capital Corp. (b)................ P-1/A-1+ 4.82 7/6/99 11,146,000 11,138,538
Receivables Capital Corp. (b)................ P-1/A-1+ 4.91 7/7/99 5,000,000 4,995,908
Receivables Capital Corp. (b)................ P-1/A-1+ 4.96 7/13/99 25,000,000 24,958,667
Variable Funding Capital Corp. (b)........... P-1/A-1 4.92 7/6/99 10,000,000 9,993,167
Variable Funding Capital Corp. (b)........... P-1/A-1 4.81 7/12/99 12,000,000 11,982,363
Variable Funding Capital Corp. (b)........... P-1/A-1 5.04 7/16/99 10,000,000 9,979,000
--------------
233,908,315
--------------
AUTO-TRUCK -- 9.2%
DaimlerChrysler AG........................... P-1/A-1 4.84 7/14/99 15,000,000 14,973,783
DaimlerChrysler AG........................... P-1/A-1 5.02 7/21/99 25,000,000 24,930,278
DaimlerChrysler AG........................... P-1/A-1 4.93 7/26/99 17,000,000 16,941,799
Ford Motor Credit Corp....................... P-1/A-1 4.83 7/8/99 25,000,000 24,976,495
Ford Motor Credit Corp....................... P-1/A-1 4.84 7/8/99 30,000,000 29,971,793
General Motors Acceptance Corp............... P-1/A-1 5.01 7/21/99 18,000,000 17,949,900
General Motors Acceptance Corp............... P-1/A-1 4.90 7/22/99 20,000,000 19,942,833
--------------
149,686,881
--------------
BANKING -- 13.6%
Banque et Caisse d'Epargne de L'Etat......... P-1/A-1+ 4.83 7/7/99 10,000,000 9,991,950
Banque et Caisse d'Epargne de L'Etat......... P-1/A-1+ 4.83 7/19/99 15,000,000 14,963,775
Banque et Caisse d'Epargne de L'Etat......... P-1/A-1+ 4.81 8/10/99 15,000,000 14,919,833
BBL North America, Inc....................... P-1/A-1+ 4.84 7/7/99 10,000,000 9,991,933
BBL North America, Inc....................... P-1/A-1+ 4.81 7/26/99 30,000,000 29,899,792
Cregem N.A., Inc............................. P-1/A-1+ 4.81 7/1/99 30,000,000 30,000,000
Cregem N.A., Inc............................. P-1/A-1+ 5.20 7/12/99 6,200,000 6,190,149
Cregem N.A., Inc............................. P-1/A-1+ 4.81 7/16/99 10,000,000 9,979,958
Cregem N.A., Inc............................. P-1/A-1+ 5.00 7/22/99 10,000,000 9,970,833
Cregem N.A., Inc............................. P-1/A-1+ 4.80 7/29/99 25,000,000 24,906,667
Den Danske Corp.............................. P-1/A-1 4.82 7/12/99 10,000,000 9,985,144
</TABLE>
Continued
7
<PAGE> 8
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER, CONTINUED:
BANKING, CONTINUED:
Den Danske Corp.............................. P-1/A-1 4.89% 7/12/99 $15,000,000 $ 14,977,716
Nationwide Building Society.................. P-1/A-1 4.82 8/4/99 10,000,000 9,954,478
Nationwide Building Society.................. P-1/A-1 4.82 8/11/99 5,000,000 4,972,553
Nordbanken N.A., Inc......................... P-1/A-1 4.82 7/16/99 20,000,000 19,959,833
--------------
220,664,614
--------------
BROKER/DEALER -- 2.1%
Goldman Sachs Group, Inc..................... P-1/A-1+ 4.98 7/20/99 20,000,000 19,947,433
Morgan Stanley, Dean Witter & Co............. P-1/A-1 4.97 7/16/99 5,000,000 4,989,646
Morgan Stanley, Dean Witter & Co............. P-1/A-1 5.11* 1/31/00 10,000,000 10,000,000
--------------
34,937,079
--------------
BUSINESS SERVICES -- 1.5%
Block Financial Corp......................... P-1/A-1 5.55 7/1/99 25,000,000 25,000,000
--------------
COMPUTER -- 1.2%
IBM Credit Corp.............................. P-1/A-1 4.98 7/20/99 20,000,000 19,947,433
--------------
CONSUMER PRODUCTS -- 0.4%
Fortune Brands, Inc. (b)..................... P-1/A-1 5.06 7/15/99 6,000,000 5,988,193
--------------
FINANCE-CONDUIT -- 0.6%
MetLife Funding Inc.......................... P-1/A-1+ 4.98 7/16/99 10,000,000 9,979,250
--------------
FINANCE-CONSUMER -- 1.3%
Household Finance Corp....................... P-1/A-1 4.90 7/14/99 22,000,000 21,961,072
--------------
FINANCE-SUBSIDIARY -- 2.4%
Deutsche Bank Financial, Inc................. P-1/A-1+ 4.80 8/9/99 15,000,000 14,922,000
National Australia Funding................... P-1/A-1+ 4.89 7/12/99 25,000,000 24,962,646
--------------
39,884,646
--------------
FINANCIAL-RETAIL -- 0.6%
American Express Credit Co................... P-1/A-1 5.06 7/7/99 10,000,000 9,991,567
--------------
FOOD, BEVERAGE & TOBACCO -- 0.6%
Campbell Soup Co. (b)........................ P-1/A-1+ 5.12 9/3/99 10,000,000 9,908,978
--------------
</TABLE>
Continued
8
<PAGE> 9
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER, CONTINUED:
INSURANCE -- 1.8%
Prudential Funding Corp...................... P-1/A-1 4.82% 7/8/99 $30,000,000 $ 29,971,883
--------------
MANUFACTURING -- DIVERSIFIED -- 0.8%
BTR Dunlop Finance Inc. (b).................. P-1/A-1 5.00 7/19/99 13,000,000 12,967,500
--------------
METALS & MINING -- 0.7%
U.S. Borax, Inc. (b)......................... P-1/A-1+ 5.00 7/23/99 11,000,000 10,966,389
--------------
TELECOMMUNICATIONS -- 3.3%
Ameritech Capital Funding Corp. (b).......... P-1/A-1+ 4.98 7/19/99 15,000,000 14,962,650
Ameritech Capital Funding Corp. (b).......... P-1/A-1+ 5.15 7/28/99 15,000,000 14,942,063
BellSouth Capital Funding Corp. (b).......... P-1/A-1+ 4.87 7/14/99 23,600,000 23,558,496
--------------
53,463,209
--------------
Total Commercial Paper (Cost $927,878,620)..... 927,878,620
--------------
SHORT-TERM CORPORATE OBLIGATIONS -- 4.5%
BANKING -- 0.4%
Norwest Corp................................. P-1/A-1+ 5.55... 8/31/99 7,000,000 6,999,663
--------------
BROKER/DEALER -- 1.7%
Bear Stearns Companies, Inc.................. P-1/A-1 4.99* 7/20/99 6,000,000 6,000,000
Bear Stearns Companies, Inc.................. P-1/A-1 4.92* 8/6/99 8,000,000 8,000,000
Lehman Brothers Holdings, Inc................ P-2/A-1 5.04* 7/22/99 13,000,000 13,000,727
--------------
27,000,727
--------------
COMPUTER -- 0.3%
IBM Credit Corp.............................. P-1/A-1 4.95* 9/15/99 5,000,000 5,000,000
--------------
FINANCE-AIRCRAFT -- 0.5%
International Lease Financing................ P-1/A-1+ 7.41 9/1/99 7,500,000 7,523,367
--------------
</TABLE>
Continued
9
<PAGE> 10
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- --------- ----------- --------------
<S> <C> <C> <C> <C> <C>
SHORT-TERM CORPORATE OBLIGATIONS,
CONTINUED:
FINANCE-DIVERSIFIED -- 0.7%
Associates Corp. of N.A...................... P-1/A-1+ 5.10%* 6/29/00 $12,000,000 $ 11,992,815
--------------
INSURANCE -- 0.9%
Prudential Funding Corp...................... P-1/A-1 5.39* 7/16/99 8,000,000 8,000,000
Prudential Funding Corp...................... P-1/A-1 5.51* 8/30/99 7,000,000 7,000,000
--------------
15,000,000
--------------
Total Short-Term Corporate Obligations (Cost
$73,516,572)................................. 73,516,572
--------------
REPURCHASE AGREEMENTS -- 0.6%
S. G. Cowen Securities Corp., dated 6/30/99
(Collateralized by $9,602,000, U.S.
Treasury Notes, 7.00%, due 7/15/06, fair
value -- $10,406,168)...................... 4.83 7/1/99 10,202,000 10,202,000
--------------
Total Repurchase Agreements (Cost
$10,202,000)................................. 10,202,000
--------------
Total Investments (Cost $1,627,193,092)
(a) -- 99.6%................................. 1,627,193,092
Other assets in excess of liabilities
-- 0.4%..................................... 6,473,093
--------------
Total Net Assets -- 100.0%..................... $1,633,666,185
==============
</TABLE>
- ---------------
(a) Cost for federal income tax and financial reporting purposes are the same.
(b) Represents a restricted security, purchased under Rule 144A or Section 4(2),
which is exempt from registration under the Security Act of 1933, as
amended. These securities have been deemed liquid under guidelines
established by the Board of Directors.
* Variable rate security. Rate presented represents the rate in effect at June
30, 1999. Maturity date presented reflects earlier of next rate change date
or maturity date.
** Implied Long Term Rating.
- ---------------
See Notes to Financial Statements.
10
<PAGE> 11
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities, at amortized cost.............. $1,616,991,092
Repurchase agreements, at cost............................ 10,202,000
--------------
Total Investments......................................... 1,627,193,092
Cash...................................................... 52
Interest receivable....................................... 10,418,000
Prepaid expenses and other assets......................... 233,738
--------------
Total assets................................................ 1,637,844,882
--------------
LIABILITIES
Dividends payable......................................... 2,602,226
Accrued expenses and other payables:
Advisory fees........................................... 135,022
Administration fees..................................... 135,022
Distribution fees....................................... 936,863
Other................................................... 369,564
--------------
Total liabilities........................................... 4,178,697
--------------
NET ASSETS.................................................. $1,633,666,185
==============
Shares Outstanding ($0.001 par value, 3 billion shares
authorized):.............................................. 1,634,494,772
==============
Net Asset Value, Offering Price and Redemption Price per
Share..................................................... $1.00
----
----
COMPOSITION OF NET ASSETS
Shares of common stock, at par............................ $ 1,634,495
Additional paid-in-capital................................ 1,632,891,708
Accumulated net realized losses........................... (860,018)
--------------
Net Assets.................................................. $1,633,666,185
==============
</TABLE>
- ---------------
See Notes to Financial Statements.
11
<PAGE> 12
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest.................................................... $40,543,862
Expenses
Advisory fees............................................. $ 801,927
Administration fees....................................... 801,927
Special management services fees.......................... 801,927
Distribution fees......................................... 4,811,621
Accounting fees........................................... 32,449
Transfer agent fees and expenses.......................... 329,455
Directors' fees........................................... 28,890
Other expenses............................................ 552,192
----------
Total expenses before fee waivers....................... 8,160,388
Less: Fee waivers....................................... (888,156)
----------
Total Expenses.............................................. 7,272,232
-----------
Net Investment Income....................................... 33,271,630
REALIZED GAINS ON INVESTMENT TRANSACTIONS
Net realized gains on investment transactions............. 31,294
-----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS.............. $33,302,924
===========
</TABLE>
- ---------------
See Notes to Financial Statements.
12
<PAGE> 13
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, December 31,
1999 1998
---------------- ---------------
(Unaudited)
<S> <C> <C>
CHANGE IN NET ASSETS
Operations
Net investment income..................................... $ 33,271,630 $ 61,692,419
Net realized gains on investment transactions............. 31,294 87,896
--------------- ---------------
Change in net assets from operations.................... 33,302,924 61,780,315
--------------- ---------------
Dividends to shareholders from net investment income........ (33,271,630) (61,698,042)
--------------- ---------------
Capital Share Transactions
Proceeds from shares issued............................... 4,539,799,000 7,074,460,107
Dividends reinvested...................................... 32,320,948 59,507,058
Cost of shares redeemed................................... (4,326,388,447) (6,897,157,916)
--------------- ---------------
Change in net assets from share transactions............ 245,731,501 236,809,249
--------------- ---------------
Change in net assets........................................ 245,762,795 236,891,522
NET ASSETS
Beginning of period....................................... 1,387,903,390 1,151,011,868
--------------- ---------------
End of period............................................. $ 1,633,666,185 $ 1,387,903,390
=============== ===============
SHARE TRANSACTIONS
Issued.................................................... 4,539,799,000 7,074,460,107
Reinvested................................................ 32,320,948 59,507,058
Redeemed.................................................. (4,326,388,447) (6,897,157,916)
--------------- ---------------
Change in shares.......................................... 245,731,501 236,809,249
=============== ===============
</TABLE>
- ---------------
See Notes to Financial Statements.
13
<PAGE> 14
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES TAX FREE MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER -- 17.9%
DISTRICT OF COLUMBIA -- 0.5%
District of Columbia (National Academy of
Science)....................................... NR/NR 3.20% 9/24/99 $ 500,000 $ 500,000
------------
FLORIDA -- 2.4%
Florida Local Government Finance Authority....... P-1/A-1 3.10 8/9/99 1,100,000 1,100,000
Florida Local Government Finance Authority....... P-1/A-1 2.80 8/10/99 500,000 500,000
Sarasota Public Hospital......................... VMIG1/A-1+ 3.15 9/14/99 1,000,000 1,000,000
------------
2,600,000
------------
ILLINOIS -- 1.4%
Illinois Health Facility Authority (Evanston
Hospital)...................................... NR/A-1+ 2.95 11/30/99 1,000,000 1,000,000
Illinois Health Facility Authority (Evanston
Hospital)...................................... NR/A-1+ 3.25 5/31/00 500,000 500,000
------------
1,500,000
------------
INDIANA -- 0.5%
City of Indianapolis Gas Utility System.......... P-1/A-1 3.15 9/20/99 500,000 500,000
------------
KENTUCKY -- 0.9%
Trimble County, PCR (Louisville G&E)............. VMIG1/A-1 3.15 8/5/99 1,000,000 1,000,000
------------
MARYLAND -- 0.9%
Maryland Health & Education (John Hopkins)....... P-1/A-1+ 3.15 9/15/99 1,000,000 1,000,000
------------
MICHIGAN -- 0.5%
Michigan Strategic Fund (Dow Chemical Co.)....... P-1/A-1 3.15 7/14/99 500,000 500,000
------------
NEBRASKA -- 0.9%
Omaha Public Power District...................... P-1/A-1+ 3.25 10/12/99 1,000,000 1,000,000
------------
NEW YORK -- 2.4%
New York City.................................... VMIG1/A-1 2.90 8/19/99 1,600,000 1,600,000
New York City Municipal Water.................... P-1/A-1+ 3.45 7/28/99 1,000,000 1,000,000
------------
2,600,000
------------
SOUTH CAROLINA -- 0.5%
South Carolina Public Service Authority.......... P-1/A-1+ 3.15 8/6/99 500,000 500,000
------------
</TABLE>
Continued
14
<PAGE> 15
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER, CONTINUED:
TEXAS -- 5.6%
Brazos Port PCR (Dow Chemical Co.)............... P-1/A-1 3.20% 8/6/99 $1,500,000 $ 1,500,000
City of Brownsville Utility System............... P-1/A-1+ 3.15 9/10/99 600,000 600,000
City of Houston Water & Sewer.................... P-1/A-1 3.20 8/5/99 1,000,000 1,000,000
State of Texas................................... P-1/A-1+ 2.95 7/23/99 1,000,000 1,000,000
State of Texas................................... P-1/A-1+ 2.95 7/30/99 1,000,000 1,000,000
State of Texas................................... P-1/A-1+ 2.95 8/20/99 1,000,000 1,000,000
------------
6,100,000
------------
VIRGINIA -- 1.4%
Town of Louisa Industrial Development Authority
(Virginia Electric Power)...................... VMIG1/A-1 3.35 10/13/99 500,000 500,000
Town of Louisa Industrial Development Authority
(Virginia Electric Power)...................... VMIG1/A-1 3.40 2/14/00 1,000,000 1,000,000
------------
1,500,000
------------
Total Commercial Paper (Cost $19,300,000).......... 19,300,000
------------
MUNICIPAL BONDS -- 82.5%
ALASKA -- 0.5%
Valdez Marine Terminal Revenue, Series C (Exxon
Pipeline Co. Project).......................... VMIG1/A-1+ 3.40* 12/1/33 500,000 500,000
------------
ARIZONA -- 2.3%
Arizona School District, Cash Flow Management,
Series A....................................... NR/SP1+ 4.10 7/30/99 500,000 500,414
Pima County Industrial Development Authority
Revenue (Tucson Electric Light & Power
Improvements).................................. VMIG1/A-1+ 3.55* 12/1/22 1,500,000 1,500,000
Scottsdale Industrial Development Authority,
Hospital Revenue, Series B (Scottsdale Memorial
Health System)................................. VMIG1/A-1+ 3.30* 9/1/22 500,000 500,000
------------
2,500,414
------------
</TABLE>
Continued
15
<PAGE> 16
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
CALIFORNIA -- 1.4%
California Higher Education Loan Authority Inc.,
Student Loan Revenue, Series D-2............... VMIG1/NR 3.65% 7/1/99** $ 500,000 $ 500,000
California School Cash Reserve Program Authority,
Revenue Bonds.................................. MIG1/SP1+ 4.50 7/2/99 1,000,000 1,000,020
------------
1,500,020
------------
DISTRICT OF COLUMBIA -- 2.1%
District of Columbia, Series A (George Washington
University).................................... VMIG1/NR 3.45* 3/1/06 2,300,000 2,300,000
------------
FLORIDA -- 3.8%
Dade County Health Facilities Authority, Hospital
Revenue (Miami Children's Hospital Project).... NR/A-1+ 3.30* 9/1/25 1,100,000 1,100,000
Dade County Water & Sewer System Revenue......... VMIG1/A-1+ 3.30* 10/5/22 1,300,000 1,300,000
Indian Trace Community Development District,
Series A (Basin 1 Water Management)............ VMIG1/A-1+ 3.30* 11/1/99 1,700,000 1,700,000
------------
4,100,000
------------
GEORGIA -- 6.8%
Burke County Georgia Development Authority, PCR,
Series A (Oglethorpe Power Corp.).............. VMIG1/A-1+ 3.30* 1/1/19 1,800,000 1,800,000
Cobb County, Tax Anticipation Notes, GO.......... MIG1/SP-1+ 3.25 12/31/99 500,000 500,500
Coweta Development Authority, PCR (Georgia Power
Co. Plant, Yates Project)...................... VMIG1/A-1 3.75* 3/1/24 400,000 400,000
De Kalb Private Hospital Authority, Revenue
Anticipation Bonds (Eagleston Childrens Health
Center)........................................ VMIG1/A-1+ 3.35* 12/1/17 1,800,000 1,800,000
Georgia Municipal Gas Authority Gas Revenue,
Series B....................................... NR/A-1+ 3.30* 9/1/07 1,400,000 1,400,000
Gwinett County Housing Authority, Multi-Family
Housing (Post Court)........................... NR/A-1+ 3.35* 6/1/25 500,000 500,000
</TABLE>
Continued
16
<PAGE> 17
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
GEORGIA, CONTINUED:
Monroe County Development Authority, PCR (Georgia
Power Co. Plant, Scherer Project).............. VMIG1/A-1 3.75%* 9/1/29 $ 300,000 $ 300,000
Putnam County Development Authority, PCR (Georgia
Power Co. Plant, Branch Project)............... VMIG1/A-1 3.75* 3/1/24 500,000 500,000
------------
7,200,500
------------
IDAHO -- 1.6%
Idaho Health Facilities Authority (St. Luke's
Regional Medical Center Project)............... VMIG1/NR 3.40* 5/1/22 400,000 400,000
Power County, PCR (FMC Corp.).................... VMIG1/NR 3.45* 12/1/10 1,300,000 1,300,000
------------
1,700,000
------------
ILLINOIS -- 14.4%
Chicago O'Hare International Airport Revenue,
Series C (American Airlines Inc.).............. VMIG1/A-1+ 3.50* 12/1/17 300,000 300,000
Chicago O'Hare International Airport Revenue,
Series C, General Airport, Second Lien......... VMIG1/A-1+ 3.50* 1/1/18 1,000,000 1,000,000
Chicago O'Hare International Airport Revenue,
Series D, (American Airlines Inc.)............. VMIG1/A-1+ 3.50* 12/1/17 900,000 900,000
Illinois Development Finance Authority, PCR (A.E.
Staley Manufacturing Co.)...................... P-1/NR 3.30* 12/1/05 1,800,000 1,800,000
Illinois Educational Facilities Authority Revenue
(Field Museum of Natural History).............. VMIG1/A-1+ 2.90 11/23/99 1,000,000 1,000,000
Illinois Educational Facilities Authority
Revenue, Series Cp-1 (DePaul University)....... VMIG1/A-1+ 3.65* 4/1/26 1,800,000 1,800,000
Illinois Health Facilities Authority Revenue
(Combined Health & NW Community)............... VMIG1/NR 3.40* 10/1/15 2,000,000 2,000,000
Illinois Health Facilities Authority Revenue
(Evanston Hospital Corp. Project).............. VMIG1/NR 3.05 2/15/00 1,000,000 1,000,000
Illinois Health Facilities Authority Revenue,
Series B (Advocate Health Care)................ VMIG1/A-1+ 3.40* 8/15/22 1,960,000 1,960,000
</TABLE>
Continued
17
<PAGE> 18
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
ILLINOIS, CONTINUED:
Illinois Health Facilities Authority Revenue,
Series B (Elmhurst Memorial Hospital
Project)....................................... VMIG1/NR 3.50%* 1/1/20 $2,100,000 $ 2,100,000
Illinois Health Facilities Authority Revenue,
Series B (St. Luke's Medical Center)........... VMIG1/A-1+ 3.50* 11/15/23 500,000 500,000
Illinois State Toll Highway Authority, Toll
Highway Priority Refunding Revenue, Series B... VMIG1/A-1+ 3.30* 1/1/10 1,000,000 1,000,000
------------
15,360,000
------------
INDIANA -- 4.3%
Indiana Advance Funding Program Note, Series
A-2............................................ MIG1/SP1+ 3.50 1/19/00 1,500,000 1,504,326
Indiana Municipal Power Agency, Series A (Agency
Power Supply System Revenue)................... VMIG1/A-1+ 3.35* 1/1/18 1,000,000 1,000,000
Indianapolis Local Public Improvement Bond,
Series A....................................... NR/SP1+ 4.00 1/10/00 750,000 752,916
Rockport PCR, Series B (AEP Generating Co.
Project)....................................... NR/A-1+ 3.45* 7/1/25 400,000 400,000
Rockport PCR, Series B (Indiana Power Co.
Project)....................................... NR/A-1+ 3.45* 6/1/25 1,000,000 1,000,000
------------
4,657,242
------------
KENTUCKY -- 0.5%
Kentucky Asset Project Notes..................... MIG1/SP1+ 3.50 11/1/99 500,000 500,900
------------
LOUISIANA -- 2.9%
East Baton Rouge Parish, PCR (Exxon Project)..... P-1/A-1+ 3.45* 3/1/22 800,000 800,000
Louisiana State Offshore Terminal Authority
(Loop)......................................... VMIG1/A-1+ 3.40* 9/1/08 800,000 800,000
Louisiana State Offshore Terminal Authority
(Loop)......................................... NR/A-1+ 3.50* 9/1/08 820,000 820,000
Plaquemines Port Harbor & Terminal District
(Chevron Pipe Line Co.)........................ P-1/NR 3.65* 9/1/99 685,000 685,056
------------
3,105,056
------------
MASSACHUSETTS -- 1.4%
Massachusetts Bay Transit Authority, Series A,
GO............................................. MIG1/SP1+ 3.50 2/25/00 500,000 501,907
Massachusetts Municipal Wholesale Electrical
Corp., Power Supply System Revenue, Series C... VMIG1/A-1+ 3.40* 7/1/19 1,000,000 1,000,000
------------
1,501,907
------------
</TABLE>
Continued
18
<PAGE> 19
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
MICHIGAN -- 5.2%
Michigan Municipal Bond Authority, Series D-1.... NR/SP1+ 4.25% 8/27/99 $ 500,000 $ 500,504
Michigan State Hospital Finance Authority
Revenue, Series A (St. Mary Hospital of Livonia
Project)....................................... VMIG1/A-1 3.50* 7/1/17 1,900,000 1,900,000
Michigan State Strategic Fund Limited Obligation
Revenue (DOW Chemical Co. Project)............. P-1/A-1 3.45* 2/1/09 800,000 800,000
University of Michigan Hospital, Revenue Bond,
Series A....................................... VMIG1/A-1+ 3.45* 12/1/19 800,000 800,000
University of Michigan Hospital, Revenue Bond,
Series A-2..................................... VMIG1/A-1+ 3.45* 12/1/24 1,600,000 1,600,000
------------
5,600,504
------------
MISSISSIPPI -- 0.9%
Harrison County PCR (E.I. Dupont De Nemours)..... P-1/A-1+ 3.45* 9/1/10 1,000,000 1,000,000
------------
MISSOURI -- 0.5%
Missouri Health & Education Facilities Authority
Revenue, Series A (Medical Research
Facilities -- Stowers)......................... NR/A-1+ 3.55* 4/1/38 500,000 500,000
------------
NEBRASKA -- 1.2%
Nebraska Help Increase Revenue, Series E, Student
Loan Revenue Bond, MBIA........................ VMIG1/A-1+ 3.55* 12/1/15 1,300,000 1,300,000
------------
NEW HAMPSHIRE -- 2.2%
Rockingham County Tax Anticipation Notes......... NR/NR 3.25 12/31/99 1,000,000 1,000,143
State Housing Finance Authority, Multi-Family
Revenues (EQR Bond Partnership)................ VMIG1/NR 3.50* 9/15/26 1,400,000 1,400,000
------------
2,400,143
------------
NEW JERSEY -- 0.9%
Essex County Bond Anticipation Notes............. MIG1/NR 3.50 12/15/99 500,000 500,919
South Jersey Transportation, Bond Anticipation
Notes.......................................... MIG1/SP1 2.95 11/3/99 500,000 500,000
------------
1,000,919
------------
</TABLE>
Continued
19
<PAGE> 20
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
NEW MEXICO -- 1.6%
University of New Mexico (University Revenue).... VMIG1/A-1+ 3.30%* 6/1/06 $1,700,000 $ 1,700,000
------------
NEW YORK -- 2.3%
New York Local Government Assistance Corp.,
Series B....................................... VMIG1/A-1 3.25* 4/1/25 1,400,000 1,400,000
New York State, Dorm Authority Revenue, Series B
(State University)............................. NR/NR 7.38 5/15/00** 1,000,000 1,055,505
------------
2,455,505
------------
NORTH CAROLINA -- 6.3%
North Carolina Community Hospital Revenue, Series
A (Duke University Hospital Project)........... VMIG1/A-1+ 3.65* 6/1/23 1,500,000 1,500,000
North Carolina Educational Facilities, Finance
Agency Revenue, Series B (Duke University)..... VMIG1/A-1+ 3.65* 12/1/21 1,700,000 1,700,000
Raleigh Durham Airport Authority, Special
Facilities Revenue, Series A, (American
Airlines, Inc.)................................ NR/A-1+ 3.45* 11/1/15 700,000 700,000
Union, North Carolina, PCR (Square D), Revenue
Bonds.......................................... VMIG1/NR 3.70* 3/1/03 1,400,000 1,400,000
University of North Carolina Chapel Hill
Foundation (Certification of Participation).... VMIG1/NR 3.55* 10/1/09 1,500,000 1,500,000
------------
6,800,000
------------
OHIO -- 0.9%
Ohio State Air Quality Development Authority
(Ohio Edison).................................. VMIG1/A-1+ 2.95* 2/1/00** 1,000,000 1,000,000
------------
OREGON -- 0.9%
Portland Tax Anticipation Notes, GO.............. NR/NR 4.25 6/29/00 950,000 957,306
------------
PENNSYLVANIA -- 5.5%
Allegheny County Hospital Development Authority
Revenue, Series B (Children's Hospital
Pittsburgh).................................... VMIG1/A-1 3.40* 12/1/15 700,000 700,000
Delaware County Industrial Development Authority,
PCR (BP Oil Inc. Project)...................... P-1/A-1+ 3.50* 12/1/09 200,000 200,000
</TABLE>
Continued
20
<PAGE> 21
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
PENNSYLVANIA, CONTINUED:
Delaware Valley Regulatory Financing Authority,
Local Government Revenue, Series A............. VMIG1/A-1+ 3.35%* 12/1/19 $2,000,000 $ 2,000,000
North Umberland Industrial Development Authority
Revenue (Merck Project)........................ NR/A-1+ 3.95* 10/1/22 2,000,000 2,000,000
Philadelphia Water & Wastewater Revenue, Series
B.............................................. VMIG1/A-1+ 3.30* 8/1/27 1,000,000 1,000,000
------------
5,900,000
------------
SOUTH CAROLINA -- 0.8%
South Carolina Jobs Economic Development
Authority, Hospital Facilities Revenue......... NR/A-1+ 3.30* 2/15/28 900,000 900,000
------------
TEXAS -- 2.9%
Brazos River Harbor Navigation District Brazoria
County Revenue, Series A (Dow Chemical Co.
Project)....................................... P-1/NR 3.80* 8/1/22 1,100,000 1,100,000
Harris County Health Facilities Development
Corp., Series B (Memorial Hospital System
Project)....................................... VMIG1/A-1+ 3.30* 6/1/24 1,400,000 1,400,000
Tom Green County Health Facilities Development
Corp., Health Facilities Revenue (Universal
Health Services)............................... NR/A-1+ 3.50* 12/1/15 600,000 600,000
------------
3,100,000
------------
VERMONT -- 0.7%
Vermont Educational & Buildings Financing Agency
Revenue (Middlebury College Project)........... NR/A-1+ 3.19* 5/1/00 800,000 800,000
------------
VIRGINIA -- 1.1%
Loudoun County Industrial Development Authority
(Falcons Landing Project)...................... VMIG1/NR 3.40* 11/1/28 1,200,000 1,200,000
------------
WASHINGTON -- 2.3%
Port Seattle Industrial Development (Alaska
Airlines, Inc.)................................ P-1/NR 3.45* 12/1/09 500,000 500,000
Washington State, Series 96B, GO................. VMIG1/A-1+ 3.40* 6/1/20 2,000,000 2,000,000
------------
2,500,000
------------
</TABLE>
Continued
21
<PAGE> 22
<TABLE>
<CAPTION>
AMORTIZED
MOODY'S/S&P MATURITY PRINCIPAL COST
RATINGS RATE DATE AMOUNT (NOTE 2)
---------------- ---- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS, CONTINUED:
WISCONSIN -- 2.3%
Kenosha Wisconsin University, Tax & Revenue
Anticipation Notes, GO......................... MIG1/NR 3.38% 9/28/99 $ 500,000 $ 500,000
La Crosse Industrial Development Revenue, Series
C (Dairyland Power Cooperative)................ VMIG1/NR 3.70* 2/1/15 1,000,000 1,000,000
Stoughton Wisconsin Area School District......... NR/NR 3.25 10/29/99 950,000 950,000
------------
2,450,000
------------
WYOMING -- 2.0%
Sweetwater County PCR, Series C (Idaho Power Co.
Project)....................................... VMIG1/A-1 3.45* 7/15/26 600,000 600,000
Sweetwater County PCR (Pacificorp Projects)...... VMIG1/A-1+ 3.50* 11/1/24 1,600,000 1,600,000
------------
2,200,000
------------
Total Municipal Bonds (Cost $88,690,416)........... 88,690,416
------------
Total Investments (Cost
$107,990,416)(a) -- 100.4%....................... 107,990,416
Liabilities in excess of other assets -- (0.4)%.... (422,585)
------------
Total Net Assets -- 100.0%......................... $107,567,831
============
</TABLE>
- ---------------
(a) Cost for federal income tax and financial reporting purposes are the same.
* Floating or adjustable rate security. The coupon rate shown on floating or
adjustable rates securities represents the rate at June 30, 1999.
** Put or demand features exist allowing the fund to require the repurchase of
the investment within variable time periods ranging from daily, weekly,
monthly or semi-annually. Maturity date reflects the next put date for these
securities. For all other securities held by the Portfolio, maturity date
reflects final maturity date.
GO = General Obligation
MBIA = Insured by Municipal Bond Insurance Assoc.
NR = Not rated
PCR = Pollution Control Revenue
- ---------------
See Notes to Financial Statements.
22
<PAGE> 23
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES TAX FREE MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities, at amortized cost.............. $107,990,416
Cash...................................................... 95,900
Interest receivable....................................... 609,607
Prepaid expenses and other assets......................... 28,044
------------
Total assets................................................ 108,723,967
------------
LIABILITIES
Dividends payable......................................... 112,752
Payable for securities purchased.......................... 957,306
Accrued expenses and other payables:
Advisory fees........................................... 8,945
Administration fees..................................... 5,367
Distribution fees....................................... 38,462
Other................................................... 33,304
------------
Total liabilities........................................... 1,156,136
------------
NET ASSETS.................................................. $107,567,831
============
Shares Outstanding ($0.001 par value, 3 billion shares
authorized):.............................................. 107,565,482
============
Net Asset Value, Offering Price and Redemption Price per
Share..................................................... $1.00
=====
COMPOSITION OF NET ASSETS
Shares of common stock, at par............................ $ 107,565
Additional paid-in-capital................................ 107,457,916
Undistributed net investment income....................... 940
Accumulated net realized gains............................ 1,410
------------
Net Assets.................................................. $107,567,831
============
</TABLE>
- ---------------
See Notes to Financial Statements.
23
<PAGE> 24
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES TAX FREE MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest.................................................... $1,725,481
Expenses
Advisory fees............................................. $ 55,988
Administration fees....................................... 55,988
Special management services fees.......................... 55,988
Distribution fees......................................... 335,933
Accounting fees........................................... 13,233
Transfer agent fees and expenses.......................... 13,169
Directors' fees........................................... 2,085
Other expenses............................................ 51,437
---------
Total expenses before fee waivers....................... 583,821
Less: Fee waivers....................................... (173,564)
---------
Total Expenses.............................................. 410,257
----------
Net Investment Income....................................... 1,315,224
REALIZED GAINS ON INVESTMENT TRANSACTIONS
Net realized gains on investment transactions............. 93
----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS.............. $1,315,317
==========
</TABLE>
- ---------------
See Notes to Financial Statements.
24
<PAGE> 25
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES TAX FREE MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
June 30, December 31,
1999 1998
---------------- ------------
(Unaudited)
<S> <C> <C>
CHANGE IN NET ASSETS
Operations
Net investment income..................................... $ 1,315,224 $ 3,169,653
Net realized gains on investment transactions............. 93 3,211
------------- -------------
Change in net assets from operations.................... 1,315,317 3,172,864
------------- -------------
Dividends to shareholders from net investment income........ (1,315,224) (3,169,653)
------------- -------------
Capital Share Transactions
Proceeds from shares issued............................... 261,851,713 547,622,475
Dividends reinvested...................................... 1,297,660 3,105,194
Cost of shares redeemed................................... (258,402,567) (551,308,528)
------------- -------------
Change in net assets from share transactions............ 4,746,806 (580,859)
------------- -------------
Change in net assets........................................ 4,746,899 (577,648)
NET ASSETS
Beginning of period....................................... 102,820,932 103,398,580
------------- -------------
End of period............................................. $ 107,567,831 $ 102,820,932
============= =============
SHARE TRANSACTIONS
Issued.................................................... 261,851,713 547,622,475
Reinvested................................................ 1,297,660 3,105,194
Redeemed.................................................. (258,402,567) (551,308,528)
------------- -------------
Change in shares.......................................... 4,746,806 (580,859)
============= =============
</TABLE>
- ---------------
See Notes to Financial Statements.
25
<PAGE> 26
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES MONEY MARKET PORTFOLIO
CORRESPONDENT CASH RESERVES TAX FREE MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 -- GENERAL
The Infinity Mutual Funds, Inc., (the "Fund") was organized as a Maryland
corporation on March 6, 1990 and is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end, management investment company.
The Fund operates as a series company currently comprising twenty-three
portfolios. The accompanying financial statements and notes relate only to the
Correspondent Cash Reserves Money Market Portfolio (the "Money Market
Portfolio") which commenced operations on May 20, 1991, and the Correspondent
Cash Reserves Tax Free Money Market Portfolio (the "Tax Free Money Market
Portfolio"), which commenced operations on October 7, 1996 (collectively the
"Portfolios"). The Money Market Portfolio's investment objective is to provide
investors with as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity by making investments
in short-term money market obligations. The Tax Free Money Market Portfolio
seeks to provide investors with as high a level of current income exempt from
Federal income tax as is consistent with the preservation of capital and the
maintenance of liquidity by investing in short-term municipal obligations.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
each Portfolio in preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles (GAAP). The preparation
of financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
A) Securities Valuation
Securities are valued at amortized cost, which approximates market value.
The amortized cost method involves valuing a security at its cost on the date of
purchase and thereafter assuming a constant amortization to maturity of the
difference between the principal amount due at maturity and cost.
B) Security Transactions and Investment Income
Security transactions are recorded on the trade date. Realized gains and
losses on the sale of investments are calculated on the identified cost basis.
Interest income, including accretion of discount and amortization of premium on
investments, is accrued daily.
C) Repurchase Agreements
The Portfolios may purchase instruments from financial institutions, such
as banks and broker-dealers, subject to the seller's agreement to repurchase
them at an agreed upon time and price ("repurchase agreements"). The seller
under a repurchase agreement is required to maintain the value of the collateral
at not less than the repurchase price. Default by the seller would, however,
expose the Portfolios to possible loss because of
Continued
26
<PAGE> 27
adverse market action or delay in connection with the disposition of the
underlying obligations. Risks may arise from the potential inability of
counterparties to honor the terms of the repurchase agreements. Accordingly, the
Portfolios could receive less than the carrying value upon the sale of the
underlying collateral securities.
D) Expenses
Direct expenses of the Portfolios are borne solely by each Portfolio and
general Fund expenses are allocated among the Fund's respective investment
portfolios based on the relative net assets of each Portfolio.
E) Federal Income Taxes
It is the policy of the Portfolios to meet the requirements of the Internal
Revenue Code (the "Code") applicable to regulated investment companies and to
distribute substantially all of their income and gains to shareholders.
Therefore, no federal income tax provision is required.
F) Dividends and Distributions
Dividends are declared daily to shareholders of record at the close of
business on the day of declaration and are paid monthly. Distributions of net
realized gains, if any, will be paid at least annually. Dividends and
distributions are recorded on the ex-dividend date.
Distributions from net investment income and from net realized gains are
determined in accordance with federal income tax regulations which may differ
from GAAP. These "book/tax" differences are either considered temporary or
permanent in nature. To the extent these differences are permanent in nature,
such amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassification. Distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but not
for tax purposes are reported as distributions in excess of net investment
income or net realized gains. To the extent they exceed net investment income
and net realized gains for tax purposes, they are reported as distributions of
capital.
NOTE 3 -- AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), a wholly
owned subsidiary of Paine Webber Incorporated ("Paine Webber"), serves as the
Portfolios' investment adviser. BISYS Fund Services Limited Partnership
("BISYS") serves as the Portfolios' administrator and distributor of Portfolio
shares. BISYS is a wholly owned subsidiary of The BISYS Group, Inc.
As investment adviser, Mitchell Hutchins supervises and assists in the
overall operations of the Portfolios. Pursuant to the terms of the Investment
Advisory Agreement, Mitchell Hutchins is entitled to a fee, accrued daily and
payable monthly, at an annual rate of 0.10% of the average daily net assets of
each Portfolio.
As administrator, BISYS assists in supervising the operations of the
Portfolios. For its services, BISYS is entitled to a fee, accrued daily and
payable monthly, at an annual rate of 0.10% of the average daily net assets of
each Portfolio. For the period ended June 30, 1999, BISYS waived fees of $22,396
with respect to the Tax Free Money Market Portfolio.
Continued
27
<PAGE> 28
Under the terms of the Special Management Services Agreement, the Portfolios
have agreed to pay Mitchell Hutchins and BISYS each a monthly fee at the annual
rate of 0.05% of the average daily net assets of each Portfolio for certain
services, other than those provided pursuant to the Portfolios' Distribution
Plan. These services include developing and monitoring customized investor
programs including individual retirement accounts and other ERISA options,
automatic deposit and withdrawal programs and other programs requested by
certain securities dealers that have entered into securities clearing
arrangements with Paine Webber. Mitchell Hutchins and BISYS collectively waived
$801,927 for the Money Market Portfolio and $55,988 for the Tax Free Money
Market Portfolio for the period ended June 30, 1999, under the Special
Management Services Agreement, which represented 100% of the fee charged.
The Portfolios have adopted a Distribution Plan pursuant to Rule 12b-1 under
the Act. Pursuant to the Distribution Plan, the Portfolios are authorized to pay
Correspondent Services Corporation (CSC), an affiliate of Paine Webber, and
certain securities dealers that have entered into clearing arrangements with
CSC, a monthly fee at an annual rate of up to 0.60% of the average daily net
assets of each Portfolio's shares held in accounts serviced by such firms. Such
fees will be paid in respect to certain services provided by such firms,
including personal services relating to shareholder accounts and services
related to the maintenance of such shareholder accounts. For the period ended
June 30, 1999, CSC waived fees of $86,229 for the Money Market Portfolio and
$95,180 for the Tax Free Money Market Portfolio.
Certain directors and officers of the Fund are "affiliated persons" (as
defined in the Act) of BISYS. As of the May 13, 1999 Board Meeting, each "non-
affiliated" director will receive an annual fee of $14,000, a meeting fee of
$2,500 per meeting and $1,000 for each telephonic meeting for services relating
to the Fund. These fees will be effective as of the next regular board meeting
on August 12, 1999.
NOTE 4 -- CONCENTRATION OF CREDIT RISK
The Tax Free Money Market Portfolio invests substantially all of its assets
in a diversified portfolio of high quality municipal obligations. The Portfolio
had the following concentration by security type at June 30, 1999 (as a
percentage of total investments):
<TABLE>
<S> <C>
Commercial Paper................... 17.9%
General Obligation................. 4.1%
Revenue Bonds:
Utilities........................ 25.6%
Health........................... 21.1%
Education........................ 14.4%
Transportation................... 5.6%
Housing.......................... 1.7%
Other............................ 9.6%
--------
100.0%
</TABLE>
The issuers' abilities to meet their obligations may be affected by domestic
and foreign economic, regional and political developments.
Continued
28
<PAGE> 29
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997 1996 1995 1994
----------------- ------------ ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD... $ 0.9994 $ 0.9992 $ 0.9991 $ 0.9986 $ 0.9975 $ 0.9999
---------- ---------- ---------- ---------- -------- --------
Income from investment
operations
Net investment
income.............. 0.0206 0.0465 0.0467 0.0462 0.0512 0.0340
Net realized and
unrealized gains
(losses) from
investments......... 0.0001 0.0002 0.0001 0.0005 0.0011 (0.0024)
---------- ---------- ---------- ---------- -------- --------
Total from investment
operations.......... 0.0207 0.0467 0.0468 0.0467 0.0523 0.0316
---------- ---------- ---------- ---------- -------- --------
Dividends to
shareholders from net
investment income..... (0.0206) (0.0465) (0.0467) (0.0462) (0.0512) (0.0340)
---------- ---------- ---------- ---------- -------- --------
Net change in net asset
value................. 0.0001 0.0002 0.0001 0.0005 0.0011 (0.0024)
---------- ---------- ---------- ---------- -------- --------
NET ASSET VALUE, END OF
PERIOD................ $ 0.9995 $ 0.9994 $ 0.9992 $ 0.9991 $ 0.9986 $ 0.9975
========== ========== ========== ========== ======== ========
Total Return........... 2.08%(a) 4.75% 4.77% 4.72% 5.24% 3.45%
RATIOS/SUPPLEMENTARY
DATA:
Net assets, end of
period (000's)...... $1,633,666 $1,387,903 $1,151,012 $1,007,265 $779,011 $458,092
Ratio of expenses to
average net
assets.............. 0.91%(b) 0.93% 0.95% 0.88% 0.85% 0.94%
Ratio of net
investment income to
average net
assets.............. 4.15%(b) 4.64% 4.68% 4.65% 5.14% 3.47%
Ratio of expenses to
average net
assets*............. 1.02%(b) 1.04% 1.06% 1.01% 1.03% 1.12%
</TABLE>
- ---------------
* During the period, certain fees and expenses were voluntarily waived and/or
reimbursed. If such voluntary reductions and/or reimbursements had not
occurred, the ratio would have been as indicated.
(a) Not annualized
(b) Annualized
See Notes to Financial Statements.
29
<PAGE> 30
THE INFINITY MUTUAL FUNDS, INC.
CORRESPONDENT CASH RESERVES TAX FREE MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
YEAR ENDED FROM OCTOBER 7,
SIX MONTHS ENDED --------------------------- 1996 THROUGH
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1997 1996*
----------------- ------------ ------------ ----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD..... $ 1.0000 $ 1.0000 $ 1.0000 $1.0000
-------- -------- -------- -------
Income from investment operations
Net investment income.................. 0.0117 0.0279 0.0286 0.0100
-------- -------- -------- -------
Total from investment operations....... 0.0117 0.0279 0.0286 0.0100
-------- -------- -------- -------
Dividends to shareholders from net
investment income...................... (0.0117) (0.0279) (0.0286) (0.0100)
-------- -------- -------- -------
Net change in net asset value............ -- -- -- --
-------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD........... $ 1.0000 $ 1.0000 $ 1.0000 $1.0000
======== ======== ======== =======
Total Return............................. 1.17%(a) 2.83% 2.90% 0.66%(a)
RATIOS/SUPPLEMENTARY DATA:
Net assets, end of period (000's)...... $107,568 $102,821 $103,399 $80,409
Ratio of expenses to average net
assets............................... 0.73%(b) 0.71% 0.78% 0.74%(b)
Ratio of net investment income to
average net assets................... 2.35%(b) 2.79% 2.86% 2.80%(b)
Ratio of expenses to average net
assets**............................. 1.04%(b) 1.02% 1.18% 1.20%(b)
</TABLE>
- ---------------
* Period from commencement of operations.
** During the period, certain fees and expenses were voluntarily waived and/or
reimbursed. If such voluntary reductions and/or reimbursements had not
occurred, the ratio would have been as indicated.
(a) Not annualized.
(b) Annualized.
See Notes to Financial Statements.
30
<PAGE> 31
CORRESPONDENT CASH
---------------------------------------------
RESERVES
---------------------------------------------
- ---------------------------------------------------
THE INFINITY MUTUAL FUNDS, INC.
3435 Stelzer Road
Columbus, OH 43219
- ---------------------------------------------------
INVESTMENT ADVISER
MITCHELL HUTCHINS ASSET MANAGEMENT INC.
1285 Avenue of the Americas
New York, NY 10019
- ---------------------------------------------------
ADMINISTRATOR AND DISTRIBUTOR
BISYS FUND SERVICES, LP
3435 Stelzer Road
Columbus, OH 43219
- ---------------------------------------------------
CUSTODIAN
THE BANK OF NEW YORK
90 Washington Street
New York, NY 10286
- ---------------------------------------------------
TRANSFER AGENT
& DIVIDEND DISBURSING AGENT
BISYS FUND SERVICES OHIO, INC.
3435 Stelzer Road
Columbus, OH 43219
- ---------------------------------------------------
AUDITORS
KPMG LLP
Two Nationwide Plaza
Columbus, OH 43215
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
CORRESPONDENT CASH
---------------------------------------------
RESERVES
---------------------------------------------
LOGO
SEMI-ANNUAL REPORT
------------------
JUNE 30, 1999
COICCRD99SA 8/99
