<PAGE>
SCHEDULE OF INVESTMENTS January 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
NAME OF ISSUER RATINGS
----------------
Percentages represent the market value of each Std. & Coupon Principal Market
investment category to total net assets Moody's Poor's Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (94.93%)
Anderson Co., KS (Garnett) USD #365 G.O. 93 AMBAC Aaa AAA 5.000% 09/01/04 $ 200,000 $ 205,622
Insured.
Anderson Co., KS (Garnett) USD #365 G.O. 93 AMBAC Aaa AAA 5.200 03/01/05 210,000 218,637
Insured.
Anderson Co., KS (Garnett) USD # 365 G.O. 93 AMBAC Aaa AAA 5.200 09/01/05 210,000 219,263
Insured.
Butler Co., KS (Augusta) USD #402 G.O. 93 AMBAC Insured. Aaa AAA 5.400 10/01/06 200,000 210,592
Butler County, KS USD #394 (Rose Hill) G.O. 93 AMBAC Aaa AAA 4.750 09/01/03 250,000 253,178
Insured.
Chanute, KS Electric Light, Water & Gas Sys Ref. Rev. 92A Aaa AAA 5.875 05/01/04 500,000 530,055
MBIA Insured.
Derby, KS Sewer Utility System Rev AMBAC Insured. Aaa AAA 4.500 08/01/02 130,000 129,346
Derby, KS Sewer Utility System Rev AMBAC Insured Aaa AAA 4.600 08/01/03 130,000 129,225
Derby, KS Sewer Utility System Rev AMBAC Insured. Aaa AAA 5.000 08/01/08 540,000 533,326
Douglas County, KS USD #491 (Eudora) G.O. School Bldg. Aaa AAA 7.750 03/01/02 190,000 217,020
Ref. & Imp. 93 AMBAC Insured.
Douglas County, KS USD #491 (Eudora) G.O. School Bldg. Aaa AAA 7.750 03/01/03 255,000 299,811
Ref. & Imp. 93 AMBAC Insured
Douglas Co., KS (Lawrence) USD #497 G.O. A FGIC Insured. Aaa AAA 7.200 09/01/02 1,370,000 1,562,649
Franklin Co., KS General Obligation 92 FGIC Insured. Aaa AAA 6.100 09/01/02 100,000 106,022
Garden City, KS Health Care Rev. MBIA Insured. Aaa AAA 4.900 11/15/07 400,000 393,612
Hutchinson, KS Water and Sewer Ref. Rev. 93 AMBAC Aaa AAA 4.400 12/01/01 240,000 240,065
Insured.
Hutchinson, KS Water and Sewer Ref. Rev. AMBAC Insured. Aaa AAA 4.550 12/01/02 355,000 356,147
Hutchinson, KS Water and Sewer Ref. Rev. 93 AMBAC Aaa AAA 4.700 12/01/03 200,000 201,398
Insured.
Johnso\Miami Cos., KS (Spring Holl) G.O. 93 FGIC Insured. Aaa AAA 5.250 12/01/02 190,000 198,363
Johnson\Miami Cos., KS (Spring Hill) G.O. 93 FGIC Insured. Aaa AAA 5.250 12/01/03 325,000 338,920
Johnson\Miami Co. KS (USD #230 G.O. FGIC Insured. Aaa AAA 5.250 12/01/04 500,000 521,430
Johnson\Miami Cos., KS (Spring Hill) G.O. 93 FGIC Insured Aaa AAA 5.250 12/01/05 350,000 365,502
Johnson Co., KS USD 229 (Blue Valley) FGIC Insured. Aaa AAA 5.100 10/01/02 200,000 206,986
Johnson Co., KS USD 229 (Blue Valley) FGIC Insured. Aaa AAA 5.400 10/01/04 1,000,000 1,044,700
Johnson Co., KS (DeSoto) USD #232 G.O. 92 CGIC Insured. NR AAA 5.200 03/01/02 100,000 103,747
Johnson Co., KS (DeSoto) USD #232 G.O. 92 CGIC Insured. Aaa AAA 5.400 03/01/03 100,000 104,821
Johnson Co., KS US (Olathe) USD #491 G.O. 93 AMBAC Aaa AAA 5.450 09/01/02 100,000 105,424
Insured.
Johnson Co., KS (Olathe) USD #233 G.O. 92B AMBAC Aaa AAA 5.650 09/01/03 1,485,000 1,584,762
Insured.
Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured. Aaa AAA 5.950 09/01/05 400,000 434,976
Johnson Co., KS (Olathe) USD #233 G.O. 92B AMBAC Aaa AAA 6.150 03/01/07 300,000 326,889
Insured.
Kansas City, KS G.O. Ref. & Imp. 91 FSA Insured. Aaa AAA 6.150 09/01/00 500,000 531,555
Kansas City, KS General Obligation 95A Aaa AAA 5.200 09/01/06 500,000 516,295
Kansas City, KS (Srs. of Prov.-St. Margaret Hlth Ctr.) 92 Aaa AAA 5.700 08/01/03 250,000 264,920
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AMBAC Insured.
Kansas City Special Obligation 92 NR AAA 6.000 02/15/03 200,000 214,906
Kansas Municipal Energy Agency Rev. AMBAC Insured. Aaa AAA 4.550 12/01/02 500,000 498,700
Kansas Devl. Finance Auth. Pooled Ref. Lease Rev. 94C MBIA Aaa AAA 5.500 10/01/05 250,000 263,785
Insured.
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev. 94A MBIA Aaa AAA 5.200 11/15/02 160,000 165,635
Insured.
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev. 94A MBIA Aaa AAA 5.300 11/15/03 170,000 176,581
Insured.
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev. 94A MBIA Aaa AAA 5.400 11/15/04 155,000 162,164
Insured.
Lenexa, KS (Barrington Park) MultifamHsg Rev.Ref. 93A Aaa AAA 5.875 02/01/04 500,000 514,605
Asset Guar. Insured.
Lenexa, KS (Barrington Park) MultifamHsg Rev. Ref. 93A Aaa AAA 5.950 02/01/05 250,000 260,603
Asset Guar. Insured.
McPherson Co., KS (McPherson) USD #418 G.O. 94 CGIC Aaa AAA 5.500 09/01/05 100,000 106,156
Insured.
McPherson Co., KS (McPherson) USD #418 G.O. CGIC Aaa AAA 5.700 09/01/06 400,000 427,436
Insured.
Miami Co., KS Rural Water Dist #2 Ref. Rev. 93 Asset Guar. Aaa AA 5.750 12/01/04 225,000 231,381
Insured.
Olathe, KS (Evang. Luth. Good Samaritan Soc.) 94 AMBAC Aaa AAA 5.200 05/01/01 190,000 196,186
Insured.
Olathe, KS (Evang. Luth. Good Samaritan Soc.) 94 AMBAC Aaa AAA 5.400 05/01/02 150,000 156,483
Insured.
Olathe, KS (Evang. Luth. Good Samaritan Soc.) 94 AMBAC Aaa AAA 5.500 05/01/03 110,000 115,397
Insured.
Olathe, KS (Medical Center) Hlth. Facs. Rev. Ref. 94A Aaa AAA 5.600 09/01/05 1,000,000 1,058,070
AMBAC Insured.
Ottawa Co., KS (Twin Valley) USD #240 G.O. 93 AMBAC Aaa AAA 5.250 09/01/01 100,000 103,720
Insured
Ottawa Co., KS (Twin Valley) USD #240 G.O. 93 AMBAC Aaa AAA 5.300 09/01/02 135,000 140,399
Insured.
Salina, KS (Asbury-Salina Regl. Med. Center) Hosp. Rev. Aaa AAA 4.700 10/01/02 250,000 251,593
Ref. 93 AMBAC Insured.
Salina, KS (Asbury-Salina Regl. Med. Ctr.) Hosp. Rev. Aaa AAA 4.750 10/01/03 350,000 351,239
Ref. 93 AMBAC Insured.
Salina, KS (Asbury-Saline Regl Med. Ctr.) Hosp. Rev. Aaa AAA 5.000 10/01/04 850,000 865,292
Ref. 93 AMBAC Insured.
Salina, KS (Asbury-Salina Regl Med. Ctr.) Hosp. Rev. Aaa AAA 5.000 10/01/05 100,000 101,679
Ref. 93 AMBAC Insured.
Salina, KS Comb. Water & Sew. Sys. Rev. Ref. 94 MBIA Aaa AAA 4.400 09/01/02 400,000 397,984
Insured.
Sedgwick\ Shawnee Cos., KS Coll. Single Family Mtg. Ref. Aaa NR 5.250 11/01/04 335,000 332,709
94BII GNMA Guaranteed
Sedgwick Co., KS(Derby) G.O. 93 AMBAC Insured. Aaa AAA 4.900 10/01/04 645,000 656,655
Sedgwick County, KS (Maize) USD #266 G.O. 93 FGIC Aaa AAA 4.650 09/01/03 345,000 346,094
Insured.
Sedgwick Co., KS(Maize) USD #266 G.O. 94B. Aaa AAA 5.500 09/01/05 300,000 317,445
Sedgwick Co., KS (Maize) USD # 266 G.O. 94B CGIC Insured. Aaa AAA 5.600 09/01/06 200,000 212,034
Sedgwick Co., KS (Renwick) USD #267 G.O. 95 AMBAC Aaa AAA 5.850 11/01/06 290,000 310,871
Insured.
Sedgwick Co., KS (Renwick) USD #267 G.O. 95 AMBAC Aaa AAA 6.000 11/01/07 570,000 615,623
Insured.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Seward County, KS G.O. Hospital Ref. 92B AMBAC Insured. Aaa AAA 5.600 08/15/04 100,000 105,929
Seward Co., KS G.O. Hospital Ref. 92B AMBAC Insured. Aaa AAA 5.600 08/15/04 150,000 158,893
Shawnee Co. Ks USD 437 (Aub-Wash) AMBAC Insured. Aaa AAA 6.700 09/01/00 415,000 455,014
Shawnee Co. KS (Auburn, Washburn) USD #437 G.O. AMBAC Aaa AAA 6.625 09/01/01 475,000 523,388
Insured.
Shawnee Co., KS (Shawnee Heights) USD #450 G.O. 94 CGIC Aaa AAA 6.500 09/01/00 250,000 271,937
Insured.
Shawnee Co., KS (Topeka) USD #501 G.O. 95 FGIC Insured. Aaa AAA 5.550 02/01/07 820,000 856,375
Sumner Co., KS (Belle Plaine) USD #357 G.O. 93 AMBAC Aaa AAA 6.250 09/01/02 230,000 251,495
Insured.
Sumner Co., KS (Belle Plaine) USD #357 G.O. 93 AMBAC Aaa AAA 6.250 09/01/03 265,000 290,954
Insured.
Wellington, KS Electric, Waterworks & Sewage Util. Sys. Aaa AAA 5.300 11/01/02 350,000 366,219
Ref. Rev. 93 AMBAC Insured.
Wichita, KS Airport Auth. Airport Facs. Ref. Rev. 92 Asset Aaa AAA 5.900 03/01/96 150,000 150,208
Guar Insured.
Wichita, KS Airport Auth. Facs Ref. Rev. 92 Asset Guar. NR NR 7.000 03/01/05 100,000 103,139
Insd.
Wichita, KS (St Francis Regl. Med. Ctr.) Hosp. Facs. Imp. Aaa AAA 5.625 10/01/00 405,000 427,214
& Ref. Rev. 92B-3 MBIA Insured.
Wichita, KS (St Francis Regl. Med. Ctr.) Hosp. Facs. Imp. Aaa AAA 6.000 10/01/03 250,000 270,020
& Ref. 92A-3 MBIA Insured.
Wichita, KS (St Francis Regl. Med. Ctr.) Hosp. Facs. Imp. Aaa AAA 6.100 10/01/04 775,000 848,881
& Ref. 92A-3 MBIA Insured.
Wichita, KS Water & Sewer Util Ref. & Imp. Rev. Bonds FGIC Aaa AAA 5.500 10/01/04 320,000 336,090
Insured.
Wichita, KS Water & Sewer Util Ref. & Imp. Rev. 93 FGIC Aaa AAA 5.600 04/01/05 610,000 645,337
Insured.
Wichita, KS Water & Sewer Util Ref. & Imp. Ref. 93B FGIC Aaa AAA 5.750 10/01/06 150,000 159,710
Insured.
Winfield, KS Electric Sys. Ref. Rev. 93 AMBAC Insured. Aaa AAA 5.000 09/01/04 580,000 594,239
Wyandotte County, KS G.O. Ref. & Imp 89 FGIC Insured. Aaa AAA 7.000 09/01/05 1,020,000 1,079,170
Wyandotte Co., KS USD 204 (Bonner Springs) AMBAC Aaa AAA 5.200 09/01/04 400,000 416,867
Insured.
-----------
TOTAL KANSAS MUNICIPAL BONDS (COST: $29,436,968) $30,317,762
-----------
US GOVERNMENT SECURITIES (3.09%)
U. S. Treasury Notes 7.500% 05/15/02 335,000 $ 372,688
U. S. Treasury Notes 6.375 08/15/02 585,000 615,713
-----------
TOTAL US GOVERNMENT SECURITIES (COST: $974,959) $ 988,401
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $30,411,927) $31,306,163
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL STATEMENTS January 31, 1996
STATEMENT OF ASSETS AND LIABILITIES January 31, 1996 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investment in securities, at value
(cost: $30,411,927) $ 31,306,163
Accrued interest receivable 770,547
Receivable for fund shares sold 19,449
Due from brokers 636
Deferred organization costs 13,124
---------------
Total Assets $ 32,109,919
---------------
LIABILITIES
Dividends payable $ 116,317
Accrued expenses 15,551
Bank overdraft 40,354
---------------
Total Liabilities $ 172,222
---------------
NET ASSETS $ 31,937,697
===============
Net asset value per share,
2,582,911 shares outstanding $ 12.37
===============
</TABLE>
STATEMENT OF OPERATIONS for the six months ended January 31, 1996 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 790,606
---------------
Total Investment Income $ 790,606
---------------
EXPENSES
Investment advisory fees $ 78,628
Custodian fees 6,372
Transfer agent fees 25,114
Accounting service fees 27,379
Audit and legal fees 3,456
Insurance 873
Trustees' fees 1,651
Amortization of organization costs 3,858
---------------
Total expenses $ 147,331
Less expenses waived or absorbed
by the Fund's manager 43,477
---------------
Total Net Expenses $ 103,854
---------------
NET INVESTMENT INCOME $ 686,752
---------------
</TABLE>
<PAGE>
<TABLE>
<S> <C>
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) from
investment transactions $ 37,383
Net change in unrealized
appreciation (depreciation) of
investments 803,273
---------------
Net Realized And Unrealized
Gain (Loss) On Investments $ 840,656
---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,527,408
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL STATEMENTS January 31, 1996
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended January 31, 1996 and year ended July 31, 1995
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months
Ended January 31, For the Year Ended
1996 (Unaudited) July 31, 1995
--------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 686,752 $ 1,422,773
Net realized gain (loss) on
investment transactions 37,383 (228,035)
Net unrealized appreciation
(depreciation) on investments 803,273 597,579
--------------------------------------
Net Increase (Decrease) in
Net Assets Resulting From
Operations $ 1,527,408 $ 1,792,317
--------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment
income $ (686,752) $(1,422,773)
Distributions from net
realized gain on investment
transactions 0 0
--------------------------------------
Total Dividends and
Distributions $ (686,752) $(1,422,773)
--------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 1,297,049 $ 6,159,028
Proceeds from reinvested
dividends 411,079 842,459
Cost of shares redeemed (1,289,391) (7,908,705)
--------------------------------------
Net Increase (Decrease) in Net
Assets Resulting From Capital
Share Transactions $ 418,737 $ (907,218)
--------------------------------------
TOTAL INCREASE IN NET ASSETS $ 1,259,393 $ (537,674)
NET ASSETS, BEGINNING OF PERIOD 30,678,304 31,215,978
--------------------------------------
NET ASSETS, END OF PERIOD $31,937,697 $30,678,304
======================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS January 31, 1996 (Unaudited)
1. BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS OPERATIONS
The Kansas Insured Intermediate Fund (the "Fund") is an investment portfolio of
Ranson Managed Portfolios (the "Trust") registered under the Investment Company
Act of 1940, as amended, as a non-diversified, open-end management investment
company. The Trust may offer multiple portfolios; currently three portfolios
are offered. Ranson Managed Portfolios is an unincorporated business trust
organized under Massachusetts law on August 10, 1990. The Fund had no
operations from that date to November 23, 1992, other than matters relating to
organization and registration. On November 23, 1992, the Fund commenced its
Public Offering of capital shares to the public.
SECURITY VALUATION
Investments are stated at value, as that term is defined in the Investment
Company Act of 1940 and the published rules and regulations thereunder. The net
asset value per share is determined at 3:00 p.m. (central time) on each day the
New York Stock Exchange is open for business and on any other day on which there
is a sufficient degree of trading in the portfolio securities that the current
net asset value of the Fund's shares might be materially affected. Fixed income
securities are valued at the mean of the quoted bid and asked price. Securities
for which quotations are not readily available (which constitutes a majority of
the securities held by the Fund) are valued at fair value as determined by
Ranson Capital Corporation (the "Manager") using methods which include
consideration of yields or prices of municipal bonds of comparable quality, type
of issue, coupon, maturity and rating, indications as to value from dealers, and
general market conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Security transactions are accounted for on the trade date, which is the date the
investments are purchased or sold. Realized gains and losses on the sale of
investments are determined on the identified cost basis for both financial
statement and income tax purposes. Interest income is recorded on the accrual
basis. The Fund amortizes original issue discounts and premiums paid on
purchases of investments on the same basis for both financial reporting and
income tax purposes.
The Fund concentrates its investments in a single state. This concentration may
result in the Fund investing a relatively high percentage of its assets in a
limited number of issuers.
DEFERRED ORGANIZATION COSTS
Costs incurred by the Fund in connection with its organization are being
amortized over a 60-month period on the straight-line basis. Accumulated
amortization at January 31, 1996 totaled $24,376. In the event that any of the
initial shares acquired by the Manager are redeemed during such period, the Fund
will be reimbursed by the Manager for unamortized organization costs in the same
proportion as that between the number of shares redeemed and the number of
initial shares outstanding at the time of redemption. All of the initial shares
remain outstanding as of January 31, 1996.
<PAGE>
INCOME TAXES
It is the policy of the Fund to qualify as a regulated investment company which
can distribute tax-exempt dividends by complying with provisions available to
certain investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and realized capital gains
sufficient to relieve the Fund from all income taxes. Therefore, no income tax
provision is required. In addition, the Fund intends to invest in sufficient
municipal securities so that it will qualify to pay "exempt-interest dividends"
(as defined in the Internal Revenue Code) to shareholders.
DIVIDENDS AND DISTRIBUTIONS
The Fund declares a dividend of all of its net investment income on each day the
New York Stock Exchange is open, to shareholders of record as of 3:00 p.m.
(central time). Distributions from net investment income are paid or reinvested
monthly. Distributions from net realized capital gains, if any, are declared
and paid annually.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund entered into a Management and Investment Advisory Agreement with Ranson
Capital Corporation (the "Manager") under which the Manager manages the Fund's
investment portfolio and provides other specified services. The Fund incurs a
monthly investment advisory and management fee equivalent on an annual basis to
.50 of 1% of the average daily net assets of the Fund. For the period ended
January 31, 1996, the fee totaled $78,628.
The Manager is obligated to pay all expenses (excluding taxes, brokerage fees
and commissions) which exceed .75% of the Fund's average daily net assets on an
annual basis.
The Fund also entered into an Administrative and Accounting Services Agreement
whereby the Fund incurs a fee to the Manager for acting as the Fund's
administrative and accounting services agent. This monthly fee was equal to the
sum of a fixed fee ranging from $1500-$2500, depending on the level of average
daily net assets (ADNA), and a variable fee equal to .15% of the annualized ADNA
for the first $20,000,000 and at a lower rate on the annualized ADNA in excess
of $20,000,000.
On January 5, 1996, the Fund entered into a new Accounting Services Agreement
whereby the Fund incurs a fee to ND Resources, Inc. for acting as the Fund's
accounting services agent. This monthly fee is equal to the sum of a fixed fee
of $2,000, and a variable fee equal to .05% of the annualized ADNA for the
Fund's first $50 million, and at a lower rate on the annualized ADNA in excess
of $50,000,000. For the period ended January 31, 1996, the fee from both
agreements totaled $27,379.
<PAGE>
The Fund has entered into a Distribution and Services Agreement with Ranson
Capital Corporation (the "Distributor"). This agreement provides for the
payment of a sales commission to Ranson Capital Corporation ranging from .25% to
.05% of the offering price of each share sold, depending on the number of shares
sold.
Certain officers and trustees of the Fund are also officers and directors of the
Manager. None of the officers or trustees so affiliated received compensation
from the Fund for services as trustees of the Fund. Fees paid to non-affiliated
trustees totaled $1,651 for the period ended January 31, 1996.
3. CAPITAL SHARE TRANSACTIONS
There were 2,582,911 and 2,548,917 shares outstanding at January 31, 1996 and
July 31, 1995, respectively.
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Shares Amount
------ ------
For the For the For the For the
Six Months ended year ended Six Months ended year ended
January 31, 1996 July 31, 1995 January 31, 1996 July 31, 1995
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 105,906 530,284 $ 1,297,049 $ 6,159,028
Shares issued on reinvestment of
dividends 33,663 71,607 411,079 842,459
Shares redeemed (105,575) (672,773) (1,289,391) (7,908,705)
--------------------------------------------------------------------
Net increase (decrease) 33,994 (70,882) $ 418,737 $ (907,218)
====================================================================
</TABLE>
4. INVESTMENT IN SECURITIES
At January 31, 1996, the aggregate cost of securities for federal income tax
purposes was $30,411,927, and the net unrealized appreciation of investments
based on the cost was $894,236, which is comprised of $922,513 aggregate gross
unrealized appreciation and $28,277 aggregate gross unrealized depreciation.
5. INVESTMENT SECURITY TRANSACTIONS
The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $3,232,085 and $2,847,569
respectively, for the period ended January 31, 1996.
6. MATTERS SUBMITTED TO A VOTE OF SHAREHOLDERS
A special meeting of the shareholders of the Kansas Insured Intermediate Fund
was held on December 11, 1995. A quorum was declared present and the following
trustees were elected: Lynn W. Aas, Orlin W. Backes, Arthur A. Link, and Robert
E. Walstad.
In addition, Brady, Martz & Associates, P.C. was ratified as the Fund's
independent auditor and a new investment management agreement between the Fund
and Ranson Capital Corporation was approved.
<PAGE>
FINANCIAL HIGHLIGHTS Selected per share data and ratios for the period indicated
<TABLE>
<CAPTION>
For the six months ended For the Year Ended For the Year Ended For the Period Since
January 31, 1995 July 31, 1995 July 31, 1994 Inception (Nov. 23,
(unaudited) 1992) to July 31, 1993
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 12.04 $ 11.92 $ 12.24 $ 11.59
--------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income $ .31 $ .54 $ .52 $ .32
Net realized and
unrealized gain
(loss) on investments .33 .12 (.30) .65
--------------------------------------------------------------------------------------------------
Total From Investment
Operations $ .64 $ .66 $ .22 $ .97
--------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net
investment income $ (31) $ (.54) $ (.52) $ (.32)
Distributions from
net capital gains .00 .00 (.02) .00
--------------------------------------------------------------------------------------------------
Total Distributions $ (.31) $ (.54) $ (.54) $ (.32)
--------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 12.37 $ 12.04 $ 11.92 $ 12.24
==================================================================================================
TOTAL RETURN 10.01%(A)(B) 5.72%(A) 1.81%(A) 13.50%(A)(B)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $31,938 $30,678 $31,216 $22,110
Ratio of net expenses
(after expense
assumption) to average net
assets .66%(B)(C) .62%(C) .51%(C) .33%(B)(C)
Ratio of net
investment income to
average net assets 4.39%(B) 4.57% 4.26% 4.41%(B)
Portfolio turnover rate 9.24% 63.00% 56.00% 152.00%
</TABLE>
(A) Excludes maximum sales charge of 2.75%
(B) Ratio was annualized.
(C) During the six month period ended January 31, 1996 and the periods ended
July 31, 1995, 1994, and 1993, Ranson Capital Corporation assumed expenses of
$43,477, $112,745, $136,079 , and $68,286, respectively. If the expenses had not
been assumed, the annualized ratios of total expenses to average net assets
would have been .94%, .98%, .99%, and 1.24%, respectively.
<PAGE>
SCHEDULE OF INVESTMENTS January 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
NAME OF ISSUER RATINGS
----------------
Percentages represent the market value of each Std. & Coupon Principal Market
investment category to total net assets Moody's Poor's Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (96.1%)
GENERAL OBLIGATION (2.3%)
Park City, KS General Obligation Ref. & Sewer 93 NR NR 5.500% 12/01/13 $ 275,000 $ 274,920
Sedgwick Co., KS General Obligation 93A Aa-1 AA 5.200 08/01/13 500,000 494,050
Shawnee, KS G.O. Internal Improvement 92B A-1 NR 5.800 12/01/05 485,000 520,904
Shawnee, KS G.O. Internal Improvement 92B A-1 NR 5.850 12/01/06 235,000 252,649
Topeka, KS General Obligation Aa-2 NR 5.650 08/15/11 500,000 518,365
Wyandotte Co.KS USD #203 (Piper) G.O. Ref. 92 NR NR 6.600 09/01/13 1,000,000 1,087,470
------------
$ 3,148,358
------------
HOUSING (14.4%)
Ford Co., KS Single Family Mtg. Rev. Ref. 92A A-1 NR 7.900% 08/01/10 $1,060,000 $ 1,117,272
Hutchinson, KS Single Fam Mtg. Rev. Ref. 92 A-1 NR 6.500 12/01/09 1,575,000 1,612,139
Hutchinson, KS Single Fam Mtg. Rev. Ref. 92 A-1 NR 8.875 12/01/12 3,120,000 3,291,912
Johnson Co., KS Single Family Mtg. Rev. 94 A-1 NR 7.100 05/01/12 1,450,000 1,515,642
Kansas City, KS GNMA Coll. Mtg. Rev. SFMR 91 NR AAA 7.350 12/01/23 805,000 838,270
Kansas City, KS GNMA Coll. Mtg. Rev. Housing Aaa NR 5.900 11/01/27 2,105,000 2,119,881
Labette County, KS Single Fam Mtg Rev. Ref. 93A A-1 NR 8.400 12/01/11 765,000 810,066
Lawrence, KS (Brandon Woods) Multi-fam Hsg. Dev. Rev. NR AAA 6.625 04/01/12 2,000,000 2,047,860
Ref. 93
Reno County, KS Single Family Mtg. Rev. Ref. 91B Aaa NR 8.700 09/01/11 460,000 487,398
Saline County, KS Single Family Mtg. Rev. Ref. 91A A-1 NR 9.500 10/01/11 205,000 216,188
Sedgwick\ Shawnee Cos. KS Sgl. Fam. Mtg. Ref. Rev. 94C-1 Aaa NR 7.750 11/01/24 545,000 571,934
Sedgwick Shawnee Cos., KS Single Family Mtg. Aaa NR 8.050 05/01/24 375,000 395,734
Sedgwick\Shawnee Cos., KS Single Family Mtg. Rev. Aaa NR 7.800 11/01/24 460,000 485,475
Seward County, KS Single Family Mtg. Rev. 79A NR AA- 7.375 12/01/09 480,000 499,459
Seward County, KS Single Fam. Mtg. Rev. Ref. 91B A-1 NR 8.000 05/01/11 615,000 651,537
Wichita, KS Multi-family Housing Rev. NR AAA 5.850 11/01/25 1,000,000 1,012,820
Wichita, KS Single Family Mtg. Rev. Ref. 93B A-1 NR 7.100 09/01/09 1,775,000 1,855,390
------------
$ 19,528,977
------------
INSURED (50.3%)
Allen County, KS USD #258 (Humboldt) G.O. School Bldg. Aaa AAA 7.000% 09/01/09 630,000 $ 733,912
95B AMBAC
Burlington, KS Gas and Electric PCR MBIA Aaa AAA 7.000 06/01/31 4,000,000 4,468,480
Butler County, KS USD #402 (Augusta) G.O. Ref. 94 CGIC Aaa AAA 5.250 10/01/12 2,500,000 2,527,025
Butler County, KS USD #394 (Rose Hill) G.O. Ref. & 93 AMBAC Aaa AAA 5.375 09/01/13 1,935,000 1,958,162
Garnett, KS Utility Ref. & Imp Rev MBIA Aaa AAA 6.000 10/01/17 500,000 529,680
Johnson Co., Ks (Shawnee Mission) USD #233 G.O. 94 AMBAC Aa-1 AA+ 6.000 10/01/19 1,000,000 1,054,590
Johnson County, KS Int Imp & Ref. 92A Aa-2 AA 6.125 09/01/12 2,410,000 2,564,963
Johnson Co., KS USD #232 (DeSoto) G.O. School Bldg 92 CGIC Aaa AAA 6.000 03/01/12 500,000 531,960
Johnson Co., KS(Olathe) USD #233 G.O. 94 AMBAC Aaa AAA 5.625 09/01/14 650,000 667,810
Kansas City, KS Comm. College Student Ctr. Rev. 94 MBIA Aaa AAA 6.300 05/15/14 255,000 276,629
Kansas City, KS Comm. College Student Ctr. Rev. 94 MBIA Aaa AAA 6.300 05/15/15 275,000 297,399
Kansas City, KS (Rainbow Towers) Multifam. Hsg 94 FHA NR AAA 6.600 07/01/14 250,000 255,863
Kansas City\Leavenworth Co.\Lenexa, KS GNMA Coll. Mtg. NR AAA 8.400 05/01/15 220,000 232,940
Rev. 88A GNMA
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Kansas City\Leavenworth Co.\Lenexa, KS GNMA Coll. Mtg. NR AAA 7.850 11/01/10 655,000 690,881
Rev. 88B GNMA
Kansas City\Leavenworth Co.\Lenexa, KS GNMA Coll. Mtg. NR AAA 8.000 11/01/20 180,000 190,724
Rev. 88C GNMA
Kansas Dev. Finance Auth. (Martin Creek Place) Hsg. Dev. Aa-2 NR 6.600 08/01/34 1,900,000 1,962,453
Rev. 93E FHA
Kansas Dev. Finance Auth. (Martin Creek Place) Hsg. Dev. Aa-2 NR 6.500 08/01/24 750,000 766,478
Rev. 93E FHA
Kansas Dev. Finance Auth. (Sec. 8 Asstd. Proj.) Hsg. Dev. Aaa AAA 6.000 07/01/12 200,000 203,590
Rev. Ref. 93A MBIA
Kansas City, KS Utility System Ref & Imp. 92 AMBAC Aaa AAA 6.300 09/01/16 2,000,000 2,191,360
Kansas City, KS Utility System System Ref & Imp. 94 FGIC. Aaa AAA 6.375 09/01/23 8,000,000 8,712,880
Kansas Dev. Fin Auth. (Sect. 8) Hsg. Dev. Rev. Ref. 92A Aaa AAA 6.300 07/01/12 285,000 288,534
MBIA
Kansas Dev. Fin Auth. (Sect. 8) Hsg. Dev. Rev. Ref. 92A Aaa AAA 6.400 01/01/24 770,000 775,998
MBIA
Kansas Devl. Fin Auth. (Brd. of Regents) Aaa AAA 5.875 06/01/21 750,000 778,011
Kansas Dev. Fin Auth. (El Dorado\Larned) Ref. Rev. 92L Aaa AAA 6.000 02/01/12 2,000,000 2,137,440
MBIA
Kansas Turnpike Authority Turnpike Rev. 93 AMBAC Aaa AAA 5.400 09/01/09 260,000 267,839
Kansas Turnpike Authority Turnpike Rev. 93 AMBAC Aaa AAA 5.250 09/01/13 1,020,000 1,020,031
Kansas Turnpike Authority Turnpike Rev. 93 AMBAC Aaa AAA 5.250 09/01/17 950,000 941,041
Leavenworth Co., KS (Lansing) USD #469 G.O. 95 AMBAC Aaa AAA 5.750 09/01/14 875,000 900,270
Leavenworth Co., KS (Lansing) USD #469 G.O. 95 CGIC Aaa AAA 5.750 09/01/15 930,000 956,942
Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. 93A Aaa AAA 6.050 02/01/06 350,000 360,846
Asset Guar. Insured.
Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. 93A Aaa AAA 6.450 02/01/18 2,500,000 2,530,850
Asset Guar. Insured.
Olathe\Labette County, KS GNMA Coll. Mtg. Rev. 89A MBIA Aaa AAA 8.000 11/01/20 225,000 237,960
Olathe\Labette Co., KS GNMA Coll. Mtg. Rev. 90A GNMA NR AAA 7.750 09/01/22 175,000 183,892
McPherson County, KS (McPherson) USD #418 G.O. 94 CGIC Aaa AAA 5.750 09/01/13 350,000 365,834
Miami County, KS Water Dist #2 Ref. Rev. 93 Aaa AA 6.100 06/01/06 230,000 237,779
Miami County, KS Water Dist #2 Ref. Rev. 93 Asset Guar. Aaa AA 6.100 12/01/06 255,000 263,624
Insured.
Miami County, KS Water Dist #2 Ref. Rev. 93 Asset Guar. Aaa AA 6.150 06/01/07 245,000 253,499
Insured.
Olathe, KS Health Care Ref AMBAC Aaa AAA 6.000 05/01/19 900,000 919,305
Olathe, KS Health Care Ref AMBAC Aaa AAA 6.000 09/01/11 1,000,000 1,046,240
Olathe, KS Health Care Ref AMBAC Aaa AAA 5.875 09/01/16 2,000,000 2,082,520
Pratt, KS Electric Utility Sys. Ref. & Imp. Rev. 92 Aaa AAA 6.600 11/01/07 1,000,000 1,123,930
Salina, KS (Asbury-Saline Regl. Med. Ctr.) Rev. Ref. 93 Aaa AAA 5.300 10/01/13 750,000 745,395
AMBAC
Salina, KS Comb. Water & Sewage Sys Imp. Rev. 92 MBIA Aaa AAA 6.250 10/01/12 500,000 537,590
Salina KS Combi. Water & Sewage Sys Rev. Ref. 94 MBIA Aaa AAA 5.250 09/01/12 1,250,000 1,243,475
Sedgwick\Shawnee Cos. KS GNMA Coll. Mtg. Rev. 88E GNMA NR AAA 8.250 11/01/20 400,000 422,996
Sedgwick\Shawnee Cos., KS Coll. GNMS Mtg. Ln 88D GNMA NR AAA 7.875 04/01/11 435,000 458,494
Sedgwick\Shawnee Cos., KS GNMA Coll. Mtg. Rev. 89A MBIA Aaa AAA 7.875 12/01/21 315,000 327,272
Sedgwick\Shawnee Cos., KS Coll. GNMA Mtg. Ln 91C GNMA Aaa NR 7.000 12/01/98 200,000 199,954
Sedgwick County, KS USD #260 (Derby) G.O. 92 Aaa AAA 6.000 10/01/10 500,000 539,040
Sedgwick County, KS (Maize) USD #266 G.O. 93 FGIC Aaa AAA 5.500 09/01/10 465,000 482,726
Sedgwick County, KS (Maize) USD #266 G.O. 93 FGIC Aaa AAA 5.250 09/01/13 2,805,000 2,817,903
Seward Co., KS General Obligation 92B AMBAC. Aaa AAA 6.000 08/15/13 750,000 799,958
Shawnee Co. KS Health Care Rev. CGIC (Meninger) Aaa AAA 5.000 08/15/16 2,000,000 1,897,620
Shawnee County, KS (Auburn-Washburn) USD #437 G.O. Ref. Aaa AAA 6.600 09/01/09 500,000 551,455
92 FGIC
Shawnee County, KS (Auburn-Washburn) G.O. 93 AMBAC Aaa AAA 5.250 09/01/11 250,000 252,853
Shawnee County, KS (Auburn-Washburn) G.O. 93 AMBAC Aaa AAA 5.250 09/01/12 350,000 352,016
Shawnee County, KS (Auburn-Washburn) G.O. 93 AMBAC Aaa AAA 5.250 09/01/13 500,000 502,300
Sumner County, KS USD #357 (Belle Plaine) G.O. Ref. Imp. Aaa AAA 5.550 09/01/13 625,000 638,431
93 AMBAC
Wellington, KS Elect. Wtrwks & Sew. Util. Sys. Rev. 92 Aaa AAA 6.250 05/01/12 1,250,000 1,356,925
AMBAC
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Wichita, KS (St. Francis Reg. Medl. Ctr.) Facs. Imp. Aaa AAA 6.250 10/01/10 250,000 275,960
92B-3 MBIA
Wichita, KS (St. Francis Regl. Medl. Ctr.) Facs Ref. Aaa AAA 6.250 10/01/10 1,000,000 1,103,840
92B-MBIA
Wichita, KS Public Bldg Comm. Rev WSU Ser G-1 AMBAC Aaa AAA 5.750 02/01/17 350,000 360,042
Insured
Wichita, KS Water & Sewer Utility Ref. & Imp. 93B FGIC Aaa AAA 6.000 10/01/12 1,000,000 1,059,430
Wichita, KS Multifamily Housing Rev. Ref. 93-2A GNMA Aaa NR 6.125 08/20/28 1,900,000 1,950,274
Wichita, KS Airport Auth. Facilities Ref. Rev. 92 Asset NR NR 7.000 03/01/05 440,000 453,812
Guar. Insd.
Wyandotte County, KS General Obligation Ref. & Imp. 89 Aaa AAA 7.000 09/01/05 220,000 232,762
FGIC
------------
$ 68,052,687
------------
LEISURE & RECREATION (.6%)
Blue Valley, KS Recreation Commission COP's 93 NR NR 6.600% 04/01/07 $ 245,000 $ 266,803
Johnson County, KS Park & Rec. Rev. Ref. 91 NR NR 7.200 01/01/09 500,000 543,380
------------
$ 810,183
------------
MEDICAL CARE (10%)
Kansas City, KS Hospital Rev. (Prov.-St. Margaret) Hlth. NR A- 8.100% 12/01/04 $ 619,000 $ 636,474
Center 92
Kansas City, KS (St. Margaret Hlth. Ctr.) Hosp. Rev. 92 Aa-2 NR 5.900 08/01/05 300,000 322,212
Lawrence, KS (Memorial Hosp.) Hosp. Rev. 94 A-2 NR 6.000 07/01/09 2,000,000 2,095,640
Lawrence, KS (Memorial Hosp.) Hosp. Revenue 94 A-2 NR 6.200 07/01/14 1,200,000 1,259,244
Lawrence, KS (Memorial Hosp.) Revenue 94 A-2 NR 6.200 07/01/19 1,725,000 1,795,932
Merriam, KS (Shawnee Mission Medl. Ctr.) Rev 91B NR A- 7.250 09/01/21 1,000,000 1,103,810
Wichita, KS (St. Francis Hosp. & Sch.) Hosp. Rev. 7A NR AAA 6.750 10/01/07 595,000 656,731
Wichita, KS (CSJ Hlth. Sys.) Revenue 91X NR A- 7.000 11/15/08 640,000 699,693
Wichita, KS (CSJ Hlth. Sys.) Revenue 85XXV NR A- 7.200 10/01/15 2,225,000 2,433,683
Wichita, KS (CSJ Hlth. Sys.) Revenue 91X NR A- 7.000 11/15/18 2,350,000 2,551,231
------------
$ 13,554,650
------------
POLLUTION CONTROL (.4%)
Kansas Dev. Fin. Water Poll. Control Rev. Fd. Rev. 93-2 Aa-2 AA+ 6.000% 11/01/14 $ 500,000 $ 525,505
------------
$ 525,505
------------
REAL ESTATE (2.2%)
Wichita, KS (Cessna Citation Svc. Ctr.) Arpt. Rev. 90 NR AA+ 7.250% 05/15/30 $ 100,000 $ 103,618
Hays, KS Sales Tax Rev. 920 NR NR 6.875 09/01/12 500,000 533,695
Hiawatha, KS (Wal Mart Stores) Industrial Rev. Ref. 91 NR AA 6.750 01/01/06 650,000 698,087
Kansas Dev. Fin. Auth. (KS Hwy Patrol Training Fac.) Rev. NR NR 6.300 12/01/05 450,000 486,621
92T
Wichita Public Bldg. Commission Real Estate Rev. A-2 A+ 5.500 08/01/14 1,215,000 1,221,294
------------
$ 3,043,315
------------
TRANSPORTATION (3.9%)
Kansas Dept of Transportation Hgwy Revenue 92A Aa-2 AA 6.000% 09/01/09 $ 150,000 $ 161,742
Kansas Dept. Of Transportation Hgwy Revenue 92A Aa-2 AA 6.000 09/01/12 2,200,000 2,354,000
Kansas Dept. of Transportation Hgwy Revenue 93 Aa-2 AA 5.375 03/01/13 1,740,000 1,753,607
Kansas Dept. of Transportation Hgwy Revenue 93 Aa-2 AA 5.375 03/01/12 1,000,000 1,013,440
------------
$ 5,282,789
------------
SCHOOL (3.8%)
Cowley County, KS Community College COP's 92 A-2 NR 7.000% 03/01/12 $ 900,000 $ 976,428
Douglas Co., KS USD 497 (Lawrence) G.O. Aa-2 NR 6.000 09/01/15 1,000,000 1,071,110
Gray Co. KS (Cimmarron) USD #102 General Obligation NR NR 6.800 09/01/15 500,000 562,365
Johnson Co., KS (Shawnee Mission) USD #512 G. O. 95 Aa-1 AA 5.300 10/01/14 900,000 894,330
Kansas Dev. Fin. Auth. (KS Brd. Rgts.-Lewis Field Stadium) NR NR 6.000 04/01/08 500,000 524,705
93C
Kansas Dev. Fin. Auth. (KS Brd. Rgts.) Energy Cons. Rev. A-2 A+ 6.350 03/01/09 300,000 320,817
92G
Lyon County, KS USD #253 G.O. Ref. 93 A-2 NR 5.600 10/01/10 800,000 825,824
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
------------
$ 5,175,579
------------
UTILITIES (8.25%)
Gardner, KS Electric Utility Rev. NR NR 7.000% 11/01/09 $1,000,000 $ 1,107,620
Park City, KS Sewer System Rev. 93 NR NR 5.500 12/01/09 1,000,000 1,011,340
Atchison, KS Sewer System Rev. 92A NR NR 6.700 09/01/12 115,000 124,803
Atchison, KS Sewer System Rev. 92A NR NR 6.700 09/01/13 125,000 135,998
Johnson County, KS Water Dist. #1 Water Rev. Ref. 91 Aa-2 AA+ 6.500 12/01/13 500,000 547,075
Johnson Co., Kansas Water Dist #1 Rev. 91 Aa-2 AA+ 6.250 12/01/11 700,000 763,042
Johnson Co., Kansas Water Dist #1 Rev. Refunding 93 Aa-2 AA+ 5.300 12/01/12 4,465,000 4,444,461
Johnson Co., Kansas Water Dist #1 Rev. Refunding 93 Aa-2 AA+ 5.250 12/01/15 1,500,000 1,472,985
Johnson County, KS Water Dist. #1 Water Rev. 94 Aa-2 AA+ 5.750 12/01/19 500,000 511,385
Sabetha, KS General Obligation Ref. & Water 93B NR NR 5.500 12/01/13 400,000 399,884
Scott City, KS General Obligation Water System Ref. 93A NR NR 6.100 09/01/14 625,000 663,806
------------
$ 11,182,399
------------
TOTAL KANSAS MUNICIPAL BONDS (COST: $124,650,521) $130,304,442
------------
US GOVERNMENT SECURITIES (2.28%)
U. S. Treasury Notes (Cost: $3,093,534) 5.875% 11/15/05 $3,040,000 $ 3,102,685
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $127,744,055) $133,407,127
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL STATEMENTS January 31, 1996
STATEMENT OF ASSETS AND LIABILITIES January 31, 1996 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investment, at value (cost:
$127,744,055) $133,407,127
Cash 65,558
Accrued interest receivable 2,635,201
Receivable for fund shares sold 157,873
--------------
Total Assets $136,265,759
--------------
LIABILITIES
Dividends payable $ 564,710
Accrued expenses 79,795
Payable for fund shares redeemed 35,825
--------------
Total Liabilities $ 680,330
--------------
NET ASSETS $135,585,429
==============
Net asset value per share,
10,881,204 shares
outstanding $ 12.46
==============
</TABLE>
STATEMENT OF OPERATIONS for the six months ended January 31, 1996 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 4,008,258
Total Investment Income $ 4,008,258
--------------
EXPENSES
Investment advisory fees $ 334,581
Distribution fees (12b-1) 167,290
Custodian fees 26,441
Transfer agent fees 75,512
Accounting service fees 53,822
Audit and legal fees 7,655
Insurance 3,722
Trustees' fees 6,968
License, fees, and registrations 849
Amortization of organization costs 5,366
--------------
Total expenses $ 682,206
Less expenses waived or absorbed
by the Fund's manager 142,183
--------------
Total Net Expenses $ 540,023
--------------
NET INVESTMENT INCOME $ 3,468,235
--------------
</TABLE>
<PAGE>
<TABLE>
<S> <C>
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES, AND OPTIONS:
Net realized gain (loss) from investment
transactions $ 500,473
Net change in unrealized appreciation
(depreciation) of investments 3,727,827
--------------
Net Realized And Unrealized Gain
(Loss) On Investments $ 4,228,300
--------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 7,696,535
==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL STATEMENTS January 31, 1996
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended January 31, 1996 and year ended July 31, 1995
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months
Ended January 31, For the Year Ended
1996 (Unaudited) July 31, 1995
----------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 3,468,235 $ 6,929,239
Net realized gain (loss) on
investment transactions 500,473 (2,051,318)
Net unrealized appreciation
(depreciation) on investments 3,727,827 2,658,906
----------------------------------------
Net Increase (Decrease) in
Net Assets Resulting From
Operations $ 7,696,535 $ 7,536,827
----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment
income $ (3,468,235) $ (6,929,239)
Distributions from net realized
gain on investment transactions 0 0
----------------------------------------
Total Dividends and
Distributions $ (3,468,235) $ (6,929,239)
----------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 6,608,693 $ 13,828,413
Proceeds from reinvested
dividends 2,393,892 4,800,996
Cost of shares redeemed (7,736,741) (16,482,540)
----------------------------------------
Net Increase (Decrease)
in Net Assets Resulting
From Capital Share
Transactions $ 1,265,844 $ 2,146,869
----------------------------------------
TOTAL INCREASE IN NET ASSETS $ 5,494,144 $ 2,754,457
NET ASSETS, BEGINNING OF PERIOD $130,091,285 $127,336,828
----------------------------------------
NET ASSETS, END OF PERIOD $135,585,429 $130,091,285
========================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS January 31, 1996 (Unaudited)
1. BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS OPERATIONS - The Kansas Municipal Fund (the "Fund") is an investment
portfolio of Ranson Managed Portfolios (the "Trust") registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Trust may offer multiple portfolios;
currently three portfolios are offered. Ranson Managed Portfolios is an
unincorporated business trust organized under Massachusetts law on August 10,
1990. The Fund had no operations from that date to November 15, 1990, other
than matters relating to organization and registration. On November 15, 1990,
the Fund commenced its Public Offering of capital shares to the public.
SECURITY VALUATION - Investments are stated at value, as that term is defined in
the Investment Company Act of 1940 and the published rules and regulations
thereunder. The net asset value per share is determined at 3:00 p.m. (central
time) on each day the New York Stock Exchange is open for business and on any
other day on which there is a sufficient degree of trading in the portfolio
securities that the current net asset value of the Fund's shares might be
materially affected. Fixed income securities are valued at the mean of the
quoted bid and asked price. Securities for which quotations are not readily
available (which constitutes a majority of the securities held by the Fund) are
valued at fair value as determined by Ranson Capital Corporation (the "Manager")
using methods which include consideration of yields or prices of municipal bonds
of comparable quality, type of issue, coupon, maturity and rating, indications
as to value from dealers, and general market conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for on the trade date, which is the date the investments are purchased
or sold. Realized gains and losses on the sale of investments are determined on
the identified cost basis for both financial statement and income tax purposes.
Interest income is recorded on the accrual basis. The Fund amortizes original
issue discounts and premiums paid on purchases of investments on the same basis
for both financial reporting and income tax purposes.
The Fund concentrates its investments in a single state. This concentration may
result in the Fund investing a relatively high percentage of its assets in a
limited number of issuers.
INCOME TAXES - It is the policy of the Fund to qualify as a regulated investment
company which can distribute tax-exempt dividends by complying with provisions
available to certain investment companies, as defined in applicable sections of
the Internal Revenue Code, and to make distributions of income and realized
capital gains sufficient to relieve the Fund from all income taxes. Therefore,
no income tax provision is required. In addition, the Fund intends to invest in
sufficient municipal securities so that it will qualify to pay "exempt-interest
dividends" (as defined in the Internal Revenue Code) to shareholders.
DIVIDENDS AND DISTRIBUTIONS - The Fund declares a dividend of all of its net
investment income on each day the New York Stock Exchange is open, to
shareholders of record as of 3:00 p.m. (central time). Distributions from net
investment income are paid or reinvested monthly. Distributions from net
realized capital gains, if any, are declared and paid annually.
<PAGE>
USE OF ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund entered into a Management and Investment Advisory Agreement with Ranson
Capital Corporation (the "Manager") under which the Manager manages the Fund's
investment portfolio and provides other specified services. The Fund incurs a
monthly investment advisory and management fee equivalent on an annual basis to
.50 of 1% of the average daily net assets of the Fund. For the period ended
January 31, 1996, the fee totaled $334,581.
The Manager is obligated to pay all expenses (excluding taxes, brokerage fees
and commissions) which exceed 1.25% of the Fund's average daily net assets on an
annual basis.
The Fund also entered into an Administrative and Accounting Services Agreement
whereby the Fund incurs a fee to the Manager for acting as the Fund's
administrative and accounting services agent. This monthly fee was equal to the
sum of a fixed fee ranging from $1500-$2500, depending on the level of average
daily net assets (ADNA), and a variable fee equal to .15% of the annualized ADNA
for the Funds first $20,000,000 and at a lower rate on the annualized ADNA in
excess of $20,000,000.
On January 5, 1996, the Fund entered into a new Accounting Services Agreement
whereby the Fund incurs a fee to ND Resources, Inc. for acting as the Fund's
accounting services agent. This monthly fee is equal to the sum of a fixed fee
of $2,000, and a variable fee equal to .05% of the annualized ADNA for the
Fund's first $50 million, and at a lower rate on the annualized ADNA in excess
of $50,000,000. For the period ended January 31, 1996, the fee from both
agreements totaled $53,822.
The Fund has entered into a Distribution and Services Agreement with Ranson
Capital Corporation (the "Distributor"). This agreement provides for the
payment of a sales commission to Ranson Capital Corporation ranging from .65% to
.05% of the offering price of each share sold, depending on the number of shares
sold.
Pursuant to the Fund's Shareholder Services Plan and the Distribution and
Services Agreement between the Fund and Ranson Capital Corporation, the Fund is
obligated to make periodic payments to the Distributor of annual amounts of up
to .25% of the average net asset value of the Fund. The Distributor may use
such fees to make payments to certain banks and broker-dealers which provide
administrative and shareholder services to the Fund and its shareholders and/or
for its expenses of distributing the Fund's shares.
Certain officers and trustees of the Fund are also officers and directors of the
Manager. None of the officers or trustees so affiliated received compensation
from the Fund for services as trustees of the Fund. Fees paid to non-affiliated
trustees totaled $6,968 for the period ended January 31, 1996.
3. CAPITAL SHARE TRANSACTIONS
<PAGE>
There were 10,881,204 and 10,777,009 shares outstanding at January 31, 1996 and
July 31, 1995, respectively.
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Shares Amount
------ ------
For the For the For the For the
Six Months ended year ended Six Months ended year ended
January 31, 1996 July 31, 1995 January 31, 1996 July 31, 1995
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 539,092 1,168,053 $ 6,608,693 $ 13,828,413
Shares issued on reinvestment of
dividends 195,114 405,903 2,393,892 4,800,996
Shares redeemed (630,011) (1,407,824) (7,736,741) (16,482,540)
---------------------------------------------------------------------
Net increase 104,195 166,132 $ 1,265,844 $ 2,704,319
=====================================================================
</TABLE>
4. INVESTMENT IN SECURITIES
At January 31, 1996, the aggregate cost of securities for federal income tax
purposes was $127,744,055, and the net unrealized appreciation of investments
based on the cost was $5,663,072, which is comprised of $5,853,326 aggregate
gross unrealized appreciation and $190,254 aggregate gross unrealized
depreciation.
5. INVESTMENT SECURITY TRANSACTIONS
Cost of purchases and proceeds from sale of investment securities (excluding
short-term securities) aggregated $20,172,402 and $19,262,215 for the period
ended January 31, 1996.
6. MATTERS SUBMITTED TO A VOTE OF SHAREHOLDERS
A special meeting of the shareholders of the Kansas Municipal Fund was held on
December 11, 1995. A quorum was declared present and the following trustees
were elected: Lynn W. Aas, Orlin W. Backes, Arthur A. Link, and Robert E.
Walstad.
In addition, Brady, Martz & Associates, P.C. was ratified as the Fund's
independent auditor and a new investment management agreement between the Fund
and Ranson Capital Corporation was approved.
<PAGE>
FINANCIAL HIGHLIGHTS Selected per share data and ratios for the period indicated
<TABLE>
<CAPTION>
For the
Period Since
Inception
For the six For the Year For the Year For the Year For the Year (Nov. 15,
months ended Ended July 31, Ended July Ended July Ended July 1990) to July
January 31, 1996 1995 31, 1994 31, 1993 31, 1992 31, 1991)
(unaudited)
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 12.07 $ 12.00 $ 12.67 $ 12.22 $ 11.54 $ 11.49
--------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income $ .37 $ .65 $ .66 $ .69 $ .72 $ .54
Net realized and
unrealized gain
(loss) on
investments .39 .07 (.53) .50 .69 .05
--------------------------------------------------------------------------------------------------
Total From
Investment
Operations .76 $ .72 $ .13 $ 1.19 $ 1.41 $ .59
--------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net
investment income $ (.37) $ (.65) $ (.66) $ (.69) $ (.72) $ (.54)
Distributions from
net capital gains .00 .00 (.14) (.05) (.01) .00
--------------------------------------------------------------------------------------------------
Total Distributions $ (.37) $ (.65) $ (.80) $ (.74) $ (.73) $ (.54)
--------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 12.46 $ 12.07 $ 12.00 $ 12.67 $ 12.22 $ 11.54
==================================================================================================
TOTAL RETURN 11.87%(A)(B) 6.23%(A) .91%(A) 10.08%(A) 13.31%(A)(B) 7.38%(A)(B)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $135,585 $130,091 $127,337 $100,207 $52,010 $20,850
Ratio of net
expenses (after
expense assumption)
to average net assets .80%(B)(C) .82%(C) .70%(C) .75%(C) .70%(C) .30%(B)(C)
Ratio of net
investment income to
average net assets 5.20%(B) 5.46% 5.26% 5.53% 6.00% 6.28%(B)
Portfolio turnover rate 14.60% 57.00% 55.00% 62.00% 51.00% 161.00%(D)
</TABLE>
(A) Excludes maximum sales charge of 4.25%
(B) Ratio was annualized.
(C) During the six month period ended January 31, 1996 and the periods ended
July 31, 1995, 1994, and 1993, 1992, and 1991, Ranson Capital Corporation
assumed expenses of $142,183, $295,875, $419,129, $282,407, $231,617, and
$121,045, respectively. If the expenses had not been assumed, the
annualized ratios of total expenses to average net assets would have been
1.02%, 1.06%, 1.06%, 1.13%, 1.25%, and 1.62%, respectively.
<PAGE>
SCHEDULE OF INVESTMENTS January 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
NAME OF ISSUER RATINGS
----------------
Percentages represent the market value of each Std. & Coupon Principal Market
investment category to total net assets Moody's Poor's Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NEBRASKA MUNICIPAL BONDS (92.64%)
GENERAL OBLIGATION (7.19%)
Douglas County, NE (Law Enforcement Center) G.O. 95 Aa-2 AA+ 5.750% 07/01/10 $ 275,000 $ 289,324
Lincoln, NE General Obligation Storm Sewer & Drng 95. Aa-2 AAA 5.500 06/01/14 200,000 204,710
Lincoln, NE General Obligation Storm Sewer & Drng. 95 Aa-2 AAA 5.500 06/01/15 200,000 203,730
Lincoln, NE General Obligation Purpose 95 Aa-2 AAA 5.500 12/01/15 200,000 202,428
Lincoln\Lancaster Counties, NE Pub. Bldg. G.O. 94 NR NR 6.300 10/15/13 200,000 215,450
Lancaster County, NE SD #1 (Lincoln) G.O. 93 Aa-2 AA 5.600 07/15/06 150,000 154,284
-----------
$ 1,269,926
-----------
EDUCATION (6.68%)
NE Hgr. Educ. Loan Pgm. Jr. Subord. Term 93-2 A-6 A-2 NR 6.450% 06/01/18 $ 400,000 $ 416,696
NE Hgr. Educ Loan Pgm. Sr/ Sub. Term 93-2A-5B Aa-2 NR 6.250 06/01/18 750,000 763,155
-----------
$ 1,179,851
-----------
FINANCIAL/BUSINESS SERVICES (8.59%)
Neb. Invst/Fin. Auth. (Muirfield) Multifam. Rev. 92A Aa-1 NR 6.800% 12/01/15 $ 100,000 $ 102,423
Neb. Investment Finance Auth. Single Family Mtg. Rev. NR AAA 6.600 09/01/20 750,000 763,448
Neb. Invst. Finance Auth. Single Family Hsg. Rev. 95A NR AAA 6.500 09/01/18 400,000 399,444
Nebraska Invst. Finance Auth. Single Family Mtg. Rev. NR AAA 5.950 03/01/27 250,000 251,778
-----------
$ 1,517,093
-----------
INSURED (31.02%)
Allen Co., NE SD #17 (Millard) G.O. 94C MBIA Insured. Aaa AAA 5.650% 12/15/05 $ 400,000 $ 422,272
Cass Co., NE USD #1 G.O. Bonds FGIC Insured. Aaa AAA 6.350 12/01/19 300,000 321,723
Lincoln, NE (Lincoln Genl.Hosp.) Rev. & Ref. 93A CGIC Aaa AAA 6.200 12/01/14 100,000 106,294
Insured.
Neb.MuniEnergy Agcy Pwr. Sup Sys. Rev. Ref. 92A AMBAC Aaa AAA 6.000 04/01/17 500,000 526,990
Insured.
Otoe County, NE SD #111 (Nebraska City) Ref. 95 AMBAC Aaa AAA 5.800 11/15/14 400,000 415,836
Insured.
Buffalo Co., NE (Srs. Char. Hlth. Care) Hosp. Rev. 91 Aaa AAA 6.375 05/15/04 250,000 271,103
MBIA Insured.
Buffalo Co., NE Buffalo Co. (Srs. Char Hlth Care) Rev. 91 Aaa AAA 6.625 05/15/09 300,000 328,929
MBIA Insured.
Lanc Co., NE (Bryan Meml Hosp.) Auth. #1 Rev. 92 MBIA Aaa AAA 6.600 06/01/12 100,000 110,562
Insured.
Lanc Co., NE (Bryan Meml Hosp.). Auth. #1 Rev. 92 MBIA Aaa AAA 6.700 06/01/22 725,000 803,873
Insured.
Nebraska Educ Fin Auth (Creighton Univ) Rev. 94 MBIA . Aaa AAA 5.700 11/01/04 450,000 470,844
Insured
Neb. Invst/ Fin Auth. Multifam. Hsg Rev. 95A FNMA NR AAA 6.200 06/01/28 500,000 492,395
Guaranteed
Northeast Nebraska Solid Waste Facility Rev. MBIA Aaa AAA 5.900 05/15/15 600,000 610,140
Lincoln, NE (Lincoln Genl. Hosp.) Rev. & Ref. 93B CGIC Aaa AAA 6.200 12/01/14 50,000 53,147
Insured.
Omaha, NE Various Purpose 94 Aaa AAA 6.250 12/01/12 250,000 271,803
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Omaha, NE Various Purpose 94 Aaa AAA 6.250 12/01/14 250,000 270,208
-----------
$ 5,476,119
-----------
MEDICAL CARE (3.11%)
Univ. of Neb. Facs. Corp. (U. of NE Med. Ctr.) Rev. A-1 AA- 5.250% 07/01/11 $ 250,000 $ 248,603
Ref. 93
Scotts Bluff Co., NE (Regl West Med. Ctr.) Hosp Rev B 92 A-2 A 6.450 12/15/04 275,000 299,538
-----------
$ 548,141
-----------
REAL ESTATE (4.35%)
Omaha, NE Prkg. Facs Corp. (Omaha Park 4\5) Lse. Rev. 95 Aa-1 AAA 5.700% 09/15/15 $ 750,000 $ 767,243
-----------
$ 767,243
-----------
SCHOOL (3.92%)
Chadron St College, NE (Brd. Trstees) Student Fees & Facs. NR NR 5.700% 07/01/11 $ 240,000 $ 244,855
Rev. Ref. 94
Univ of Neb (Omaha Student Ctr) Brd. of Rgts. Rev. 93 A-1 A+ 5.250 05/15/10 250,000 250,540
Douglas Co., NE SD #1 (Omaha) G.O. Ref. 93B Aa-2 AAA 5.000 12/15/11 200,000 195,740
-----------
$ 691,135
-----------
UTILITIES (27.78%)
Hastings, Ne Electric Rev. A-2 A 6.300% 01/01/19 $ 370,000 $ 395,208
Hastings, NE Electric System Rev. Ref. 93 A-2 A 5.200 01/01/13 100,000 96,659
Lincoln, NE Electric System Rev's Aa-2 AA+ 5.750 09/01/16 750,000 771,383
Nebraska Pub Pwr Dist Pwr Supply System Rev. 93 A-1 A+ 6.125 01/01/15 390,000 408,736
Nebraska Pub Pwr Dist Pwr Supply System Rev. 93 A-1 A+ 5.750 01/01/20 750,000 759,945
Nebraska Public Power Dist Rev. NR A+ 5.000 01/01/17 345,000 323,079
Omaha, NE Pub Pwr Dist Electric System Rev. Aa-2 AA+ 5.700 02/01/17 250,000 255,628
Omaha, NE Pub Dist Electric System Rev. 93C Aa-2 AA+ 5.500 02/01/17 150,000 149,673
Omaha, NE Pub Pwr Dis Elec System Rev. 86A NR AA 6.000 02/01/15 330,000 337,154
Omaha, NE Pub Pwr Dist Elec System Rev. 92B Aa-2 AA 6.200 02/01/17 500,000 535,645
Grand Island, NE Sewer System Rev. 94 A-2 NR 6.000 04/01/14 250,000 265,455
Kearney, NE Combined Utilities Rev. 94 A-1 NR 6.100 06/01/14 400,000 403,624
Lincoln, NE Water Revenue and Refunding 93 Aa-2 AA+ 5.300 08/15/11 200,000 202,112
-----------
$ 4,904,301
-----------
TOTAL NEBRASKA MUNICIPAL BONDS (COST: $15,771,195 )
U.S. GOVERNMENT SECURITIES (6.99%)
U. S. Treasury Notes 6.500% 08/15/05 $ 100,000 $ 106,468
U. S. Treasury Notes 5.875 11/15/05 1,105,000 1,127,785
-----------
TOTAL U.S. GOVERNMENT SECURITIES (COST: $1,226,791) $ 1,234,253
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $16,997,986) $17,588,062
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL STATEMENTS January 31, 1996
STATEMENT OF ASSETS AND LIABILITIES January 31, 1996 (Unaudited)
<TABLE>
<S> <C>
ASSETS
Investment in securities, at value
(cost: $16,997,986) $ 17,588,062
Cash 101,323
Accrued interest receivable 252,119
Deferred organization costs, net 15,624
Receivable for fund shares sold 25,445
---------------
Total Assets $ 17,982,573
---------------
LIABILITIES
Dividends payable $ 71,605
Accrued expenses 7,188
Security purchases payable 250,868
---------------
Total Liabilities $ 329,661
---------------
NET ASSETS $ 17,652,912
===============
Net asset value per share,
1,557,873 shares outstanding $ 11.33
===============
</TABLE>
STATEMENT OF OPERATIONS for the six months ended January 31, 1996 (Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 457,233
---------------
Total Investment Income $ 457,233
---------------
EXPENSES
Investment advisory fees $ 40,039
Distribution fees (12b-1) 20,019
Custodian fees 3,695
Transfer agent fees 23,240
Accounting service fees 19,513
Audit and legal fees 2,870
Insurance 435
Trustees' fees 810
License, fees, and registrations 1,914
Amortization of organization costs 2,763
---------------
Total expenses $ 115,298
Less expenses waived or absorbed
by the Fund's manager 70,279
---------------
Total Net Expenses $ 45,019
---------------
NET INVESTMENT INCOME $ 412,214
---------------
</TABLE>
<PAGE>
<TABLE>
<S> <C>
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) from
investment transactions $ 13,933
Net change in unrealized
appreciation (depreciation) of
investments 528,515
---------------
Net Realized And Unrealized
Gain (Loss) On Investments $ 542,448
---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 954,662
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FINANCIAL STATEMENTS January 31, 1996
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended January 31, 1996 and year ended July 31, 1995
- -----------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months
Ended January 31, For the Year Ended
1996 (Unaudited) July 31, 1995
--------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 412,214 $ 631,226
Net realized gain (loss) on
investment transactions 13,933 (28,177)
Net unrealized appreciation
(depreciation) on investments 528,515 300,387
--------------------------------------
Net Increase (Decrease) in Net
Assets Resulting From Operations $ 954,662 $ 903,436
--------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment
income $ (412,214) $ (631,226)
Distributions from net realized
gain on investment transactions 0
--------------------------------------
Total Dividends and Distributions $ (412,214) $ (631,226)
--------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 2,843,812 $ 6,756,929
Proceeds from reinvested dividends 258,585 382,395
Cost of shares redeemed (436,648) (1,137,925)
--------------------------------------
Net Increase (Decrease) in Net
Assets Resulting From Capital
Share Transactions $ 2,665,749 $ 6,001,399
--------------------------------------
TOTAL INCREASE IN NET ASSETS $ 3,208,197 $ 6,273,609
NET ASSETS, BEGINNING OF PERIOD 14,444,715 8,171,106
--------------------------------------
NET ASSETS, END OF PERIOD $17,652,912 $14,444,715
======================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS January 31, 1996 (Unaudited)
1. BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS OPERATIONS - The Nebraska Municipal Fund (the "Fund") is an investment
portfolio of Ranson Managed Portfolios (the "Trust") registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Trust may offer multiple portfolios;
currently three portfolios are offered. Ranson Managed Portfolios is an
unincorporated business trust organized under Massachusetts law on August 10,
1990. The Fund had no operations from that date to November 17, 1993, other
than matters relating to organization and registration. On November 17, 1993,
the Fund commenced its Public Offering of capital shares to the public.
SECURITY VALUATION - Investments are stated at value, as that term is defined in
the Investment Company Act of 1940 and the published rules and regulations
thereunder. The net asset value per share is determined at 3:00 p.m. (central
time) on each day the New York Stock Exchange is open for business and on any
other day on which there is a sufficient degree of trading in the portfolio
securities that the current net asset value of the Fund's shares might be
materially affected. Fixed income securities are valued at the mean of the
quoted bid and asked price. Securities for which quotations are not readily
available (which constitutes a majority of the securities held by the Fund) are
valued at fair value as determined by Ranson Capital Corporation (the "Manager")
using methods which include consideration of yields or prices of municipal bonds
of comparable quality, type of issue, coupon, maturity and rating, indications
as to value from dealers, and general market conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for on the trade date, which is the date the investments are purchased
or sold. Realized gains and losses on the sale of investments are determined on
the identified cost basis for both financial statement and income tax purposes.
Interest income is recorded on the accrual basis. The Fund amortizes original
issue discounts and premiums paid on purchases of investments on the same basis
for both financial reporting and income tax purposes.
The Fund concentrates its investments in a single state. This concentration may
result in the Fund investing a relatively high percentage of its assets in a
limited number of issuers.
DEFERRED ORGANIZATION COSTS - Costs incurred by the Fund in connection with its
organization are being amortized over a 60-month period on the straight-line
basis. Accumulated amortization at January 31, 1996 totaled $11,430. In the
event that any of the initial shares acquired by the Manager are redeemed during
such period, the Fund will be reimbursed by the Manager for unamortized
organization costs in the same proportion as that between the number of shares
redeemed and the number of initial shares outstanding at the time of redemption.
All of the initial shares remain outstanding as of January 31, 1996.
INCOME TAXES - It is the policy of the Fund to qualify as a regulated investment
company which can distribute tax-exempt dividends by complying with provisions
available to certain investment companies, as defined in applicable sections of
the Internal Revenue Code, and to make distributions of income and realized
capital gains sufficient to relieve the Fund from all income taxes. Therefore,
no income tax provision is required. In addition, the Fund intends to invest in
sufficient municipal securities so that it will qualify to pay "exempt-interest
dividends" (as defined in the Internal Revenue Code) to shareholders.
<PAGE>
DIVIDENDS AND DISTRIBUTIONS - The Fund declares a dividend of all of its net
investment income on each day the New York Stock Exchange is open, to
shareholders of record as of 3:00 p.m. (central time). Distributions from net
investment income are paid or reinvested monthly. Distributions from net
realized capital gains, if any, are declared and paid annually.
USE OF ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund entered into a Management and Investment Advisory Agreement with Ranson
Capital Corporation (the "Manager") under which the Manager manages the Fund's
investment portfolio and provides other specified services. The Fund incurs a
monthly investment advisory and management fee equivalent on an annual basis to
.50 of 1% of the average daily net assets of the Fund. For the period ended
January 31, 1996, the fee totaled $40,039. The Manager elected to waive $17,802
of this fee.
The Manager is obligated to pay all expenses (excluding taxes, brokerage fees
and commissions) which exceed 1.25% of the Fund's average daily net assets on an
annual basis.
The Fund also entered into an Administrative and Accounting Services Agreement
whereby the Fund incurs a fee to the Manager for acting as the Fund's
administrative and accounting services agent. This monthly fee was equal to the
sum of a fixed fee ranging from $1500-$2500, depending on the level of average
daily net assets (ADNA), and a variable fee equal to .15% of the annualized ADNA
for the first $20,000,000 and at a lower rate on the annualized ADNA in excess
of $20,000,000.
On January 5, 1996, the Fund entered into a new Accounting Services Agreement
whereby the Fund incurs a fee to ND Resources, Inc. for acting as the Fund's
accounting services agent. This monthly fee is equal to the sum of a fixed fee
of $2,000, and a variable fee equal to .05% of the annualized ADNA for the
Fund's first $50 million, and at a lower rate on the annualized ADNA in excess
of $50,000,000. For the period ended January 31, 1996, the fee from both
agreements totaled $19,513.
The Fund has entered into a Distribution and Services Agreement with Ranson
Capital Corporation (the "Distributor"). This agreement provides for the
payment of a sales commission to Ranson Capital Corporation ranging from .65% to
.05% of the offering price of each share sold, depending on the number of shares
sold.
Pursuant to the Fund's Shareholder Services Plan and the Distribution and
Services Agreement between the Fund and Ranson Capital Corporation, the Fund is
obligated to make periodic payments to the Distributor of annual amounts of up
to .25% of the average net asset value of the Fund. The Distributor may use
such fees to make payments to certain banks and broker-dealers which provide
administrative and shareholder services to the Fund and its shareholders and/or
for its expenses of distributing the Fund's shares.
<PAGE>
Certain officers and trustees of the Fund are also officers and directors of the
Manager. None of the officers or trustees so affiliated received compensation
from the Fund for services as trustees of the Fund. Fees paid to non-affiliated
trustees totaled $810 for the period ended January 31, 1996.
3. CAPITAL SHARE TRANSACTIONS
There were 1,557,873 and 1,318,776 shares outstanding at January 31, 1996 and
July 31, 1995, respectively.
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Shares Amount
------ ------
For the For the For the For the
Six Months ended year ended Six Months ended year ended
January 31, 1996 July 31, 1995 January 31, 1996 July 31, 1995
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 254,929 632,974 $2,843,812 $ 6,756,929
Shares issued on reinvestment of
dividends 23,220 35,721 258,585 382,395
Shares redeemed (39,052) (105,163) (436,648) (1,137,925)
---------------------------------------------------------------------
Net increase 239,097 563,532 $2,665,749 $ 6,001,399
=====================================================================
</TABLE>
4. INVESTMENT IN SECURITIES
At January 31, 1996, the aggregate cost of securities for federal income tax
purposes was $16,997,986, and the net unrealized appreciation of investments
based on the cost was $590,076, which is comprised of $617,297 aggregate gross
unrealized appreciation and $27,221 aggregate gross unrealized depreciation.
5. INVESTMENT SECURITY TRANSACTIONS
The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $5,131,427 and $2,856,087 for the
period ended January 31, 1996.
6. MATTERS SUBMITTED TO A VOTE OF SHAREHOLDERS
A special meeting of the shareholders of the Nebraska Municipal Fund was held on
December 11, 1995.
A quorum was declared present and the following trustees were elected: Lynn W.
Aas, Orlin W. Backes, Arthur A. Link, and Robert E. Walstad.
In addition, Brady, Martz & Associates, P.C. was ratified as the Fund's
independent auditor and a new investment management agreement between the Fund
and Ranson Capital Corporation was approved.
<PAGE>
FINANCIAL HIGHLIGHTS Selected per share data and ratios for the period indicated
<TABLE>
<CAPTION>
For the six For the Year For the period since
months ended Ended July 31, inception (Nov. 17, 1993)
January 31, 1996 1995 through July 31, 1994
(unaudited)
-----------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 10.95 $ 10.82 $ 11.49
-----------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income $ .34 $ .59 $ .45
Net realized and
unrealized gain
(loss) on
investments .38 .13 (.67)
-----------------------------------------------------------------
Total From
Investment
Operations $ .72 $ .72 $ (.22)
-----------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net
investment income $ (.34) $ (.59) $ (.45)
Distributions from
net capital gains .00 .00 .00
-----------------------------------------------------------------
Total Distributions $ (.34) $ (.59) $ (.45)
-----------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 11.33 $ 10.95 $ 10.82
==============================================================
TOTAL RETURN 12.34%(A) 7.14%(A) (3.20)%(A)(B)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of
period (in thousands) $17,653 $14,445 $ 8,171
Ratio of net
expenses (after
expense assumption)
to average net assets .56%(B)(C) .35%(C) .19%(B)(C)
Ratio of net
investment income to
average net assets 5.16%(B) 5.63% 5.51%(B)
Portfolio turnover rate 17.96% 140.00% 314.00%
</TABLE>
(A) Excludes maximum sales charge of 4.25%
(B) Ratio was annualized.
(C) During the six month period ended January 31, 1996 and the periods ended
July 31, 1995and 1994, Ranson Capital Corporation assumed expenses of $70,279,
$146,913, $70,186, respectively. If the expenses had not been assumed, the
annualized ratios of total expenses to average net assets would have been 1.42%,
1.66%, and 2.25%, respectively.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<S> <C> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-31-1996
<INVESTMENTS-AT-COST> 30,411,927
<INVESTMENTS-AT-VALUE> 31,306,163
<RECEIVABLES> 19,449
<ASSETS-OTHER> 13,760
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 32,109,919
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 172,222
<TOTAL-LIABILITIES> 172,222
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2,582,911
<SHARES-COMMON-PRIOR> 2,548,917
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 37,383
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 894,236
<NET-ASSETS> 31,937,697
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 790,606
<OTHER-INCOME> 0
<EXPENSES-NET> 103,854
<NET-INVESTMENT-INCOME> 686,752
<REALIZED-GAINS-CURRENT> 37,383
<APPREC-INCREASE-CURRENT> 803,273
<NET-CHANGE-FROM-OPS> 1,527,408
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 686,752
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 105,906
<NUMBER-OF-SHARES-REDEEMED> 105,575
<SHARES-REINVESTED> 33,663
<NET-CHANGE-IN-ASSETS> 1,259,393
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 78,628
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 147,331
<AVERAGE-NET-ASSETS> 31,311,939
<PER-SHARE-NAV-BEGIN> 12.04
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> .33
<PER-SHARE-DIVIDEND> .31
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 12.37
<EXPENSE-RATIO> .66<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expenses to average net assets, annualized.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 01
<NAME> KANSAS MUNICIPAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-31-1996
<INVESTMENTS-AT-COST> 127,744,055
<INVESTMENTS-AT-VALUE> 133,407,127
<RECEIVABLES> 2,793,074
<ASSETS-OTHER> 65,558
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 136,265,759
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 680,330
<TOTAL-LIABILITIES> 680,330
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 10,881,204
<SHARES-COMMON-PRIOR> 10,777,009
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 500,473
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,663,072
<NET-ASSETS> 135,585,429
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,008,258
<OTHER-INCOME> 0
<EXPENSES-NET> 540,023
<NET-INVESTMENT-INCOME> 3,468,235
<REALIZED-GAINS-CURRENT> 500,473
<APPREC-INCREASE-CURRENT> 3,727,827
<NET-CHANGE-FROM-OPS> 7,696,535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,468,235
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 539,092
<NUMBER-OF-SHARES-REDEEMED> 630,011
<SHARES-REINVESTED> 195,114
<NET-CHANGE-IN-ASSETS> 5,494,144
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 334,581
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 682,206
<AVERAGE-NET-ASSETS> 133,374,285
<PER-SHARE-NAV-BEGIN> 12.07
<PER-SHARE-NII> .37
<PER-SHARE-GAIN-APPREC> .39
<PER-SHARE-DIVIDEND> .37
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 12.46
<EXPENSE-RATIO> .80<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expense to average net asssets, annualized.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 02
<NAME> NEBRASKA MUNICIPAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JAN-31-1996
<INVESTMENTS-AT-COST> 16,997,986
<INVESTMENTS-AT-VALUE> 17,588,062
<RECEIVABLES> 277,564
<ASSETS-OTHER> 116,947
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 17,982,573
<PAYABLE-FOR-SECURITIES> 250,868
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 78,793
<TOTAL-LIABILITIES> 329,661
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 1,557,873
<SHARES-COMMON-PRIOR> 1,318,776
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 72,348
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 528,515
<NET-ASSETS> 17,652,912
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 457,233
<OTHER-INCOME> 0
<EXPENSES-NET> 45,019
<NET-INVESTMENT-INCOME> 412,214
<REALIZED-GAINS-CURRENT> 13,933
<APPREC-INCREASE-CURRENT> 590,076
<NET-CHANGE-FROM-OPS> 954,662
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 412,214
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 254,929
<NUMBER-OF-SHARES-REDEEMED> 39,052
<SHARES-REINVESTED> 23,220
<NET-CHANGE-IN-ASSETS> 3,208,197
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 40,039
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 115,298
<AVERAGE-NET-ASSETS> 16,002,962
<PER-SHARE-NAV-BEGIN> 10.95
<PER-SHARE-NII> .34
<PER-SHARE-GAIN-APPREC> .38
<PER-SHARE-DIVIDEND> .34
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.33
<EXPENSE-RATIO> .56<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expenses to average net assets, annualized.
</FN>
</TABLE>
