RANSON MANAGED PORTFOLIOS, N-30D, 1997-09-17

RANSON MANAGED PORTFOLIOS
N-30D, 1997-09-17

Previous: BPI PACKAGING TECHNOLOGIES INC, DEF 14A, 1997-09-17

Next: RANSON MANAGED PORTFOLIOS, NSAR-B, 1997-09-17

<PAGE>
Dear Shareholders,

We are pleased to submit the annual report for The Kansas Municipal Fund.
Included with this report is a list of portfolio holdings, along with the
financial statements for the period ended July 31, 1997.

The Kansas Municipal Fund turned in steady performance for the period. Net
asset value per share was $12.14 at the beginning of the period and increased
to $12.42 by July 31, 1997.

Management Discussion and Analysis:

Both the optimists and the pessimists can find comfort in the latest batch of
economic data. For the optimists, the economy's inflation threatening growth
has lost momentum, lessening one of the biggest concerns in the financial
markets. In April, job-creation downshifted measurably, retail sales fell,
businesses started with higher inventories, and factories cut production.
Wholesale prices fell for the fourth consecutive month, and the consumer price
index edged up 0.1 percent keeping it on track to increase by less than 3
percent again this year.

The pessimists look at the same data and put an entirely different spin on
things. They contend that the slowdown was inevitable from the first
quarter's robust 6 percent pace. Beneath the surface, growth resurgence will
rise with the tight labor market and a jobless rate hovering at a 24 year low.
Also supporting their views are climbing wages, and an upbeat household sector
as indicated by consumer confidence.

For the time being, the Federal Reserve is siding with the optimists. In the
past, this may have provoked a negative reaction in the financial markets, as
investors would worry that the Central Bank was relaxing its anti-inflation
policy. But Chairman Allan Greenspan and his colleagues have built up
formidable inflation-fighting credentials.

During the second half of the fiscal year the Fund utilized a partial hedge.
Futures contracts in U.S. Treasury Bonds were employed. As interest rates rose
this had the effect of minimizing share price erosion. As interest rates
retreated share price increases were tempered. The overall effect to the Fund
during the year was a greater degree of share price stability.

Looking into our crystal ball, we feel that the economy's current slowdown is
more likely to be temporary. That prospect increases the odds of a rate hike
by the Federal Reserve in the coming months. As such, we remain concerned
(and have positioned the portfolio accordingly) that a modest increase in
rates may be needed to prevent unbridled growth.

Diversification remains an important strategy for the Fund. Among our
purchases during the second half of the year were bonds issued by housing
authorities, school districts, hospitals and utilities.

Moving forward, management intends to maintain the portfolio quality while
diversifying throughout the State. Reasonable tax-exempt income and
preservation of capital remain as the chief objectives of the Fund.

We would like to thank you for your support and look forward to serving you in
the future.

Sincerely,

<PAGE>
Robert E. Walstad Monte L. Avery
President Chief Portfolio Strategist

SHAREHOLDER REPORTS REVISED
- ---------------------------

Your fund's annual report is your best source for tracking the progress of
your investment. This report includes several changes that have been made in
an effort to provide additional information to you. In addition, the cover
letter includes commentary from your fund's portfolio manager on what might
be expected in the coming months. Specifically, your report now includes:

Terms you'd need to know related to your fund
* A look at your fund's portfolio composition
* The quality and years to maturity of the fund's underlying investments
* A look at your fund's average annual total returns

Terms & Definitions
- -------------------

Appreciation
Increase in value of an asset.

Average Annual Total Return
A standardized measurement of the return (yield and appreciation) earned
by the fund on an annual basis.

Coupon Rate or Face Rate
The rate of interest annually payable based on the face amount of the
bond; expressed as a percentage.

Depreciation
Decrease in value of an asset.

Duration
A measurement of a security or a portfolio's price volatility based on
maturity, callability and coupon rate. The larger the number, the
greater the price change for a given interest rate change.

Lehman Brothers Municipal Bond Index
An unmanaged list of long-term, fixed-rate, investment-grade, tax-exempt
bonds representative of the municipal bond market. The index does not
take into account brokerage commissions or other costs, may include bonds
different from those in the fund, and may pose different risks than the
fund.

Market Value
Actual (or estimated) price at which a bond trades in the market place.

Maturity
A measure of the term or life of a bond in years. When a bond "matures",
the issuer repays the principal.

Net Asset Value (NAV)
The value of all your fund's assets, minus any liabilities, divided by
the number of outstanding shares, not including any initial or contingent
deferred sales charge.

<PAGE>
Quality Ratings
A designation assigned by independent rating companies to give a relative
indication of a bond's credit worthiness. "AAA", "AA" and "A" indicate
highest quality. Ratings can range from a high of "AAA" to a low of "D".

Total Return
Measures both the net investment income and any realized and unrealized
appreciation or depreciation of the underlying investments in the fund's
portfolio for the period, assuming the reinvestment of all dividends. It
represents the aggregate percentage or dollar value change over the
period.

PERFORMANCE AND COMPOSITION
- ---------------------------

Portfolio Quality Ratings
(based on Total Long-Term Investments
- -------------------------------------
[pie chart]
AAA 54.7%
AA 13.3%
A 21.2%
NR 10.8%
(non-rated)

Quality ratings reflect the financial strength of the issuer. They are
assigned by independent rating services such as Moody's Investors Services
and Standard & Poor's. Non-rated bonds have been determined to be of
appropriate quality for the portfolio by Ranson Capital Corportation the
investment adviser

Portfolio Market Sectors
(as a % of Market Value)
- ------------------------
[pie chart]
I-Insured 46.7%
H-Housing 18.2%
HC-Health Care 15.0%
E-Education 4.4%
U-Utilities 4.3%
GO-General Obligation 4.0%
RE-Real Estate 2.8%
T-Transportation 2.%8
O-Other 1.8%

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.

COMPARATIVE INDEX GRAPH
- -----------------------
[line graph]

Comparison of change in value of a $10,000 investment in the Kansas
Municipal Fund and the Lehman Brother's Municipal Bond Index

Kansas Municipal Kansas Municipal Lehman Brothers
Fund w/o Fund w/ max Municipal
sales charge sales charge Bond Index
----------------------------------------------------------------
<PAGE>
11/15/90 $10,000 $ 9,575 $10,000
1991 $10,524 $10,077 $10,723
1992 $11,855 $11,351 $12,198
1993 $13,050 $12,495 $13,276
1994 $13,168 $12,609 $13,525
1995 $13,988 $13,394 $14,592
1996 $14,814 $14,184 $15,553
1997 $15,933 $15,256 $17,150

Putting Performance into Perspective
The graph comparing your Fund's performance to a benchmark index provides you
with a general sense of how your Fund performed. To put this information in
context, it may be helpful to understand the special differences between the
two. Your Fund's total return for the period shown appears with and without
sales charges and includes Fund expenses and management fees. A securities
index measures the performance of a theoretical portfolio. Unlike a fund,
the index is unmanaged; there are no expenses that affect the results. In
addition, few investors could purchase all of the securities necessary to
match the index. And, if they could, they would incur transaction costs and
other expenses.

KEY STATISTICS
- --------------

07-31-96 NAV(share value) $12.14
07-31-97 NAV $12.42
Average Maturity 19.7 years
Average Duration 6.2 years
Number of Issues 135
Total Net Assets $128,201,454

AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------

For periods ending July 31, 1997
- ---------------------------------------------------
1 year 5 year Since Inception
- ---------------------------------------------------
7.56% * 6.09%* 7.19%*

*The 1 year , 5 year and Since Inception return does not include the effect
of the maximum Sales Charges (4.5%). They would have been 2.98%, 5.17% and
6.49% respectively, if it had. Returns are historical and are not a guarantee
of future results. The Fund's share price, yields and total returns will
vary, so that shares, when redeemed, may be worth more or less than their
original cost.
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments July 31, 1997
Ratings
(Unaudited)
Name of Issuer ----------------
Percentages represent the market value Std. & Coupon Principal Market
of each investment category to total net assets Moody's Poor's Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (98.8%)

GENERAL OBLIGATION
Johnson Co., KS Int. Imp. & Rev. Aa AA 6.125% 09/01/12 $ 2,410,000 $ 2,613,549
Shawnee, KS G.O. Int. Imp. A-1 NR 5.800 12/01/05 485,000 522,854
Shawnee, KS G.O. Int. Imp. A-1 NR 5.850 12/01/06 235,000 256,126
Topeka, KS G.O. Aa NR 5.650 08/15/11 500,000 527,745
Wyandotte Co., KS USD #203 (Piper) G.O. Ref. Imp. NR NR 6.600 09/01/13 1,000,000 1,084,080
------------
$ 5,004,354
------------
HOUSING
Ford Co., KS Single Family Mtg. Rev. Ref. A-1 NR 7.900% 08/01/10 $ 825,000 $ 869,649
Hutchinson, KS Single Family Mtg. Rev. Ref. A-1 NR 6.500 12/01/09 15,000 15,426
Hutchinson, KS Single Family Mtg. Rev. Ref. A-1 NR 8.875 12/01/12 3,120,000 3,283,519
Johnson Co., KS Single Family Mtg. Rev. A-1 NR 7.100 05/01/12 1,345,000 1,410,811
Kansas City, KS GNMA Coll. Mtg. Rev. SFMR NR AAA 7.350 12/01/23 725,000 744,648
Kansas City, KS GNMA Coll. Mtg. Rev. Hsg. Aaa NR 5.900 11/01/27 1,710,000 1,690,780
KS Dev. Finance Auth. (Martin Creek) Hsg.
Dev. Rev. Aa NR 6.600 08/01/34 1,900,000 1,921,128
KS Dev. Finance Auth. (Martin Creek) Hsg.
Dev. Rev. Aa NR 6.500 08/01/24 750,000 753,323
KS Dev. Finance Auth. Multi-Family Hsg. Rev. NR AAA 6.000 12/01/21 1,375,000 1,383,140
KS Dev. Finance Auth. (Oak Ridge) Multi-Family
Hsg. Rev. NR NR 6.500 02/01/18 1,000,000 1,001,800
Labette Co., KS Single Family Mtg. Rev. Ref. A-1 NR 8.400 12/01/11 555,000 586,280
Lawrence, KS (Brandon Woods) Multi-Family Hsg.
Dev. Rev. Ref. NR AAA 6.625 04/01/12 2,000,000 2,045,960
Olathe, KS (Jefferson Place) Multi-Family Hsg.
Ref. Rev. NR A- 5.950 07/01/22 310,000 310,896
Olathe, KS (Jefferson Place) Multi-Family Hsg.
Ref. Rev. NR A- 6.100 07/01/22 185,000 185,527
Reno Co., KS Single Family Mtg. Rev. Ref. Aaa NR 8.700 09/01/11 345,000 364,689
Saline Co., KS Single Family Mtg. Rev. Ref. A-1 NR 9.500 10/01/11 120,000 126,299
Seward Co., KS Single Family Mtg. Rev. NR AA- 7.375 12/01/09 480,000 491,179
Seward Co., KS Single Family Mtg. Rev. Ref. A-1 NR 8.000 05/01/11 445,000 470,174
Wichita, KS Multi-Family Housing Rev. NR A 5.850 11/01/25 1,000,000 996,320
Wichita, KS Multi-Family Housing Rev. NR AAA 5.650 07/01/16 990,000 994,940
Wichita, KS Multi-Family Housing Rev. NR AAA 5.700 07/01/22 2,000,000 2,011,040
Wichita, KS Single Family Mtg. Rev. Ref. A-1 NR 7.100 09/01/09 1,305,000 1,359,275
------------
$ 23,016,803
------------
INSURED/GUARANTEED
*Allen Co., KS USD #258 (Humboldt) G.O. School
Bldg. AMBAC Insured Aaa AAA 7.000% 09/01/09 $ 630,000 $ 737,925
*Burlington, KS (Gas and Electric) PCR MBIA Insured Aaa AAA 7.000 06/01/31 4,500,000 5,133,555
Butler/Sedgwick Cos., KS USD #385 (Andover)
G.O. FSA Insured Aaa AAA 5.700 09/01/15 1,000,000 1,047,980
Ellsworth Co., KS G.O. MBIA Insured NR AAA 5.800 09/01/22 900,000 958,284
Garnett, KS Utility Ref. & Imp. Rev. MBIA Insured Aaa AAA 6.000 10/01/17 500,000 541,960
Johnson Co., KS USD #232 (DeSoto) G.O. School
Bldg. CGIC Insured Aaa AAA 6.000 03/01/12 500,000 538,730
Johnson Co., KS (Olathe) USD #233 G.O.
AMBAC Insured Aaa AAA 5.625 09/01/14 650,000 684,437
Kansas City, KS (Rainbow Towers) Multi-Family
Hsg. FHA Gtd. NR AAA 6.600 07/01/14 250,000 254,730
Kansas City/Leavenworth Co./Lenexa, KS GNMA
Coll. Mtg. Rev. GNMA Gtd. NR AAA 8.400 05/01/15 205,000 215,707
Kansas City/Leavenworth Co./Lenexa, KS GNMA
Coll. Mtg. Rev. GNMA Gtd. NR AAA 7.850 11/01/10 590,000 624,751
Kansas City/Leavenworth Co./Lenexa, KS GNMA
Coll. Mtg. Rev. GNMA Gtd. NR AAA 8.000 11/01/20 145,000 154,234
Kansas City, KS Utility System Ref. & Imp.
AMBAC Insured Aaa AAA 6.300 09/01/16 2,000,000 2,217,700
Kansas City, KS Utility System Ref. & Imp.
FGIC Insured Aaa AAA 6.375 09/01/23 7,750,000 8,605,290
KS Dev. Finance Auth. (Sect. 8) Hsg. Dev. Rev.
Ref. MBIA Insured Aaa AAA 6.000 07/01/12 200,000 203,440
KS Dev. Finance Auth. (Sect. 8) Hsg. Dev. Rev.
Ref. MBIA Insured Aaa AAA 6.300 07/01/12 285,000 291,207
KS Dev. Finance Auth. (Sect. 8) Hsg. Dev. Rev.
Ref. MBIA Insured Aaa AAA 6.400 01/01/24 770,000 776,799
KS Dev. Finance Auth. (Brd. of Regents)
AMBAC Insured Aaa AAA 5.875 06/01/21 750,000 792,772
KS Dev. Finance Auth. (El Dorado/Larned) Ref.
Rev. MBIA Insured Aaa AAA 6.000 02/01/12 2,000,000 2,170,000
KS Dev. Finance Auth. (Stormont Vail) Hlth.
Care Rev. MBIA Insured Aaa AAA 5.800 11/15/16 450,000 478,620
KS Dev. Finance Auth. (Stormont Vail) Hlth.
Care Rev. MBIA Insured Aaa AAA 5.800 11/15/21 430,000 460,831
KS Dev. Finance Auth. (Stormont Vail) Hlth.
Care Rev. MBIA Insured Aaa AAA 5.800 11/15/16 1,550,000 1,648,580
KS Dev. Finance Auth. (Stormont Vail) Hlth.
Care Rev. Aaa AAA 5.800 11/15/21 680,000 723,914
KS Dev. Finance Auth. (St. Luke's/Shawnee
Mission) Rev. MBIA Insured Aaa AAA 5.375 11/15/26 1,500,000 1,508,910
KS St. Dev. Finance Auth. (Hays Med. Ctr.)
Rev. MBIA Insured Aaa AAA 5.500 11/15/17 500,000 514,165
KS St. Dev. Finance Auth. (Hays Med. Ctr.)
Rev. MBIA Insured Aaa AAA 5.500 11/15/22 1,250,000 1,289,662
KS Turnpike Authority Rev. AMBAC Insured Aaa AAA 5.400 09/01/09 260,000 271,874
Leavenworth Co., KS (Lansing) USD #469 G.O.
AMBAC Insured Aaa AAA 5.750 09/01/14 875,000 922,451
Leavenworth Co., KS (Lansing) USD #469 G.O.
AMBAC Insured Aaa AAA 5.750 09/01/15 930,000 978,881
Lenexa, KS (Barrington Park) Multi-Family Hsg.
Rev. ASSET GUAR. Insured Aaa AAA 6.050 02/01/06 350,000 359,222
Lenexa, KS (Barrington Park) Multi-Family Hsg.
Rev. ASSET GUAR. Insured Aaa AAA 6.450 02/01/18 2,500,000 2,538,825
McPherson Co., KS (McPherson) USD #418 G.O.
CGIC Insured Aaa AAA 5.750 09/01/13 350,000 373,992
Miami Co., KS Water Dist. #2 Ref. Rev. Aaa AA 6.100 06/01/06 230,000 243,625
Miami Co., KS Water Dist. #2 Ref. Rev.
ASSET GUAR. Insured Aaa AA 6.100 12/01/06 255,000 271,710
Miami Co., KS Water Dist. #2 Ref. Rev.
ASSET GUAR. Insured Aaa AA 6.150 06/01/07 245,000 261,192
Olathe, KS Hlth. Care Ref. AMBAC Insured Aaa AAA 6.000 05/01/19 900,000 943,533
Olathe, KS Hlth. Care Ref. AMBAC Insured Aaa AAA 6.000 09/01/11 1,000,000 1,054,190
Olathe, KS Hlth. Care Ref. AMBAC Insured Aaa AAA 5.875 09/01/16 2,000,000 2,124,480
Olathe, KS (Medical Ctr.) Hlth. Care AMBAC Insured Aaa AAA 5.500 09/01/18 730,000 752,309
Olathe, KS (Medical Ctr.) Hlth. Care AMBAC Insured Aaa AAA 5.500 09/01/24 740,000 756,199
Olathe/Labette Co., KS GNMA Coll. Mtg. Rev.
MBIA Insured Aaa AAA 8.000 11/01/20 185,000 193,617
Olathe/Labette Co., KS GNMA Coll. Mtg. Rev.
GNMA Gtd. NR AAA 7.750 09/01/22 155,000 162,240
Pratt, KS Electric Utility Sys. Ref. & Imp.
Rev. AMBAC Insured Aaa AAA 6.600 11/01/07 1,000,000 1,136,660
Salina, KS (Asbury-Saline Regl. Med. Ctr.) Rev.
Ref. AMBAC Insured Aaa AAA 5.300 10/01/13 750,000 764,445
Salina, KS Combined Water & Sewage Sys. Imp.
Rev. MBIA Insured Aaa AAA 6.250 10/01/12 500,000 547,520
Sedgwick/Shawnee Cos., KS Single Family Mtg.
Ref. Rev. GNMA Gtd. Aaa NR 7.750 11/01/24 540,000 558,868
Sedgwick/Shawnee Cos., KS Single Family Mtg.
GNMA Gtd. Aaa NR 8.050 05/01/24 375,000 390,458
Sedgwick/Shawnee Cos., KS Single Family Mtg.
GNMA Gtd. Aaa NR 7.800 11/01/24 460,000 478,740
Sedgwick/Shawnee Cos., KS Coll. Mtg. Rev.
GNMA Gtd. NR AAA 8.250 11/01/20 335,000 350,648
Sedgwick/Shawnee Cos., KS Coll. Mtg. Loan
GNMA Gtd. NR AAA 7.875 04/01/11 365,000 383,757
Sedgwick/Shawnee Cos., KS Coll. Mtg. Rev.
MBIA Gtd. Aaa AAA 7.875 12/01/21 280,000 290,251
Sedgwick/Shawnee Cos., KS Coll. Mtg. Loan
GNMA Gtd. Aaa NR 7.000 12/01/98 85,000 85,003
Sedgwick Co., KS USD #260 (Derby) G.O.
AMBAC Insured Aaa AAA 6.000 10/01/10 500,000 541,305
Sedgwick Co., KS (Maize) USD #266 G.O.
FGIC Insured Aaa AAA 5.500 09/01/10 315,000 331,389
Seward Co., KS G.O. Aaa AAA 6.000 08/15/13 750,000 816,690
Shawnee Co., KS (Auburn-Washburn) USD #437 G.O.
FGIC Insured Aaa AAA 6.600 09/01/09 500,000 547,885
Shawnee Co., KS (Auburn-Washburn) G.O.
AMBAC Insured Aaa AAA 5.250 09/01/11 250,000 257,952
Shawnee Co., KS (Auburn-Washburn) G.O.
AMBAC Insured Aaa AAA 5.250 09/01/12 350,000 360,154
Wellington, KS Elect. Water & Sew. Util. Sys.
Rev. AMBAC Insured Aaa AAA 6.250 05/01/12 1,250,000 1,367,637
Wichita, KS Airport Auth. Facilities Ref. Rev.
ASSET GUAR. Insured Aaa AAA 7.000 03/01/05 440,000 469,982
Wichita, KS (St. Francis Reg. Med. Ctr.) Facs.
Imp. MBIA Insured Aaa AAA 6.250 10/01/10 250,000 274,578
Wichita, KS (St. Francis Reg. Med. Ctr.) Facs.
Imp. Ref. MBIA Insured Aaa AAA 6.250 10/01/10 1,000,000 1,098,310
Wichita, KS Public Bldg. Comm. Rev. WSU
AMBAC Insured Aaa AAA 5.750 02/01/17 350,000 368,126
Wichita, KS Water & Sewer Utility Ref. & Imp.
FGIC Insured Aaa AAA 6.000 10/01/12 1,000,000 1,080,110
Wichita, KS Multi-Family Hsg. Rev. Ref. GNMA Gtd. Aaa NR 6.125 08/20/28 1,900,000 1,914,440
Wyandotte Co., KS G.O. Ref. & Imp. FGIC Insured Aaa AAA 7.000 09/01/05 125,000 131,421
------------
$ 59,328,852
------------
LEISURE & RECREATION
Blue Valley, KS Recreation Commission COP's NR NR 6.600% 04/01/07 $ 245,000 $ 266,278
Johnson Co., KS Park & Recreation Rev. Ref. NR NR 7.200 01/01/09 500,000 526,285
------------
$ 792,563
------------
HEALTH CARE
Kansas City, KS Hosp. Rev. (Prov.-St. Margaret)
Hlth. Ctr. NR A- 8.100% 12/01/04 $ 574,000 $ 594,469
Kansas City, KS (St. Margaret Hlth. Ctr.)
Hosp. Rev. Aa NR 5.900 08/01/05 300,000 322,437
Lawrence, KS (Memorial Hosp.) Hosp. A NR 6.000 07/01/09 2,000,000 2,124,020
Lawrence, KS (Memorial Hosp.) Hosp. A NR 6.200 07/01/14 1,200,000 1,288,032
Lawrence, KS (Memorial Hosp.) Rev. A NR 6.200 07/01/19 1,725,000 1,837,177
Lawrence, KS (Memorial Hosp.) Rev. A-3 NR 5.375 07/01/14 250,000 251,338
Lawrence, KS (Memorial Hosp.) Rev. Aa-3 NR 5.350 07/01/21 250,000 246,432
Merriam, KS (Shawnee Mission Med. Ctr.) Rev. Ref. NR A- 7.250 09/01/21 1,000,000 1,120,780
Wichita, KS (KS Masonic Home) Hlth. Care Rev. NR NR 6.375 12/01/22 1,775,000 1,769,089
Wichita, KS (St. Francis Hosp. & Sch.) Hosp.
Rev. ESCROWED NR AAA 6.750 10/01/07 595,000 630,920
Wichita, KS (Riverside Hlth. Sys.) Hosp. Fac.
Imp. Rev. NR NR 6.250 04/01/21 3,000,000 3,082,890
Wichita, KS (CSJ Hlth. Sys.) Rev. NR A- 7.000 11/15/08 640,000 699,347
Wichita, KS (CSJ Hlth. Sys.) Rev. NR A- 7.200 10/01/15 2,225,000 2,461,473
Wichita, KS (CSJ Hlth. Sys.) Rev. NR A- 7.000 11/15/18 2,350,000 2,604,364
------------
$ 19,032,768
------------
POLLUTION CONTROL
KS Dev. Finance Auth. (KS Water Fund) PCR Aa AA+ 6.000% 11/01/14 $ 500,000 $ 537,865
KS Dev. Finance Auth. (KS Water Fund) PCR Aa-1 AA+ 5.600 05/01/17 1,000,000 1,048,800
------------
$ 1,586,665
------------
REAL ESTATE
Goddord, KS (IFR Sys.) Ind. Rev. Ref. & Imp. NR NR 6.250% 05/01/12 $ 500,000 $ 514,955
Hays, KS Sales Tax Rev. NR NR 6.875 09/01/12 500,000 543,305
Hiawatha, KS (Wal-Mart Stores) Industrial
Rev. Ref. NR AA 6.750 01/01/06 595,000 632,997
KS Dev. Finance Auth. (KS Hwy. Patrol Training
Fac.) Rev. NR NR 6.300 12/01/05 450,000 484,277
Wichita, KS (Cessna Citation Svc.) Airport
Facs. Rev. NR AA+ 7.250 05/15/30 100,000 100,000
Wichita, KS Public Bldg. Commission Real
Estate Rev. A A+ 5.500 08/01/14 1,215,000 1,253,005
------------
$ 3,528,539
------------
TRANSPORTATION
KS Dept. of Transportation Highway Rev. Aa AA 6.000% 09/01/09 $ 150,000 $ 163,092
KS Dept. of Transportation Highway Rev. Aa AA 6.000 09/01/12 2,200,000 2,390,982
KS Dept. of Transportation Highway Rev. Aa AA 5.375 03/01/13 1,000,000 1,031,840
------------
$ 3,585,914
------------
EDUCATION
Cowley Co., KS Community College COP's A NR 7.000% 03/01/12 $ 900,000 $ 974,430
Douglas Co., KS USD # 497 (Lawrence) G.O. Aa NR 6.000 09/01/15 1,000,000 1,093,690
Gray Co., KS (Cimmarron) USD #102 G.O. NR NR 6.800 09/01/15 500,000 552,285
Johnson Co., KS ( Blue Valley) USD #229 G.O. Aa-1 AA 5.500 10/01/17 1,375,000 1.414.,614
KS Dev. Fin. Auth. (KS Brd. Rgts.- Lewis
Field Stadium) NR NR 6.000 04/01/08 500,000 531,395
KS Dev. Fin. Auth. (KS Brd. Rgts.) Energy
Cons. Rev. A A+ 6.350 03/01/09 300,000 324,975
Lyon Co., KS USD #253 G.O. Ref. A NR 5.600 10/01/10 650,000 682,208
------------
$ 5,573,597
------------
UTILITIES
Gardner, KS Electric Utility Rev. NR NR 7.000% 11/01/09 $ 1,000,000 $ 1,099,100
Atchison, KS Sewer System Rev. NR NR 6.700 09/01/12 115,000 122,772
Atchison, KS Sewer System Rev. NR NR 6.700 09/01/13 125,000 133,448
Johnson Co., KS Water Dist. #1 Water Rev. Ref. Aa AA+ 6.500 12/01/13 500,000 542,030
Johnson Co., KS Water Dist. #1 Rev. Aa AA+ 6.250 12/01/11 700,000 767,347
Johnson Co., KS Water Dist. #1 Rev. Aa AA+ 5.750 12/01/19 500,000 523,715
KS Rural Water Finance Auth. PWS Dist. #6 Rev. NR NR 6.000 05/01/17 255,000 263,971
Park City, KS Sewer System Rev. NR NR 5.500 12/01/09 1,000,000 1,028,190
Scott City, KS G.O. Water System Ref. NR NR 6.100 09/01/14 625,000 675,981
------------
$ 5,156,554
------------
TOTAL KANSAS MUNICIPAL BONDS (COST: $119,674,520) $126,606,609
------------
SHORT TERM SECURITIES (0.9%)
Federated Tax Free Trust $ 371,141
Federated Intermediate Municipal Trust 841,571
------------
TOTAL SHORT-TERM SECURITIES (COST: $1,211,141) $ 1,212,712
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $120,885,661) $127,819,321
OTHER ASSETS LESS LIABILITIES (0.3%) 382,133
------------
NET ASSETS $128,201,454
============
</TABLE>
*Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.

The accompanying notes are an integral part of these financial statements.

<PAGE>
Financial Statements July 31, 1997

Liabilities
Dividends payable $ 525,561
Accrued expenses 109,176
Security purchases payable 1,496,490
Payable for fund shares redeemed 68,474
-----------------
Total Liabilities $ 2,199,701
-----------------

Net Assets $ 128,201,454
=================
Net asset value per share, 10,321,705 shares
outstanding $ 12.42
=================

The accompanying notes are an integral part of these financial statements.

Statement of Operations for the year ended July 31, 1997

INVESTMENT INCOME
Interest $ 7,654,418
Dividend 74,144
-----------------
Total Investment Income $ 7,728,562
-----------------

EXPENSES
Investment advisory fees $ 650,009
Distribution fees (12b-1) 325,005
Custodian fees 20,256
Transfer agent fees 133,688
Accounting service fees 77,994
Audit and legal fees 9,355
Directors fees 8,520
Printing and postage 15,817
Insurance 6,887
License, fees, and registrations 6,231
-----------------
Total Expenses $ 1,253,762
Less expenses waived or absorbed
by the Fund's manager 46,741
-----------------
Total Net Expenses $ 1,207,021
-----------------
NET INVESTMENT INCOME $ 6,521,541
-----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ (185,271)
Futures transactions (2,036,941)
Net change in unrealized appreciation (depreciation)
of investments 5,213,589
------------------
Net Realized And Unrealized Gain (Loss) On Investments $ 2,991,377
-----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 9,512,918
=================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>

Financial Statements July 31, 1997

Statement of Changes in Net Assets
For the years ended July 31, 1997 and 1996
- ------------------------------------------
<TABLE>
<CAPTION>
For The For The
Year Ended Year Ended
July 31, 1997 July 31, 1996
------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 6,521,541 $ 6,881,050
Net realized gain (loss) on investment and futures transactions (2,222,212) 905,123
Net unrealized appreciation (depreciation) on investments 5,213,589 (215,174)
------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 9,512,918 $ 7,570,999
------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income $ (6,521,541) $ (6,881,050)
Distributions from net realized gain on investment transactions 0 0
------------------------------------
Total Dividends and Distributions $ (6,521,541) $ (6,881,050)
------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 6,910,719 $ 11,224,770
Proceeds from reinvested dividends 4,496,123 4,686,205
Cost of shares redeemed (18,545,716) (14,343,258)
------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (7,138,874) $ 1,567,717
------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ (4,147,497) $ 2,257,666

NET ASSETS, BEGINNING OF PERIOD 132,348,951 130,091,285
------------------------------------
NET ASSETS, END OF PERIOD $ 128,201,454 $ 132,348,951
====================================
</TABLE>
The accompanying notes are an integral part of these financial statements.

<PAGE>
Notes to Financial Statements July 31, 1997

Note 1. ORGANIZATION

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 four 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. The investment
objective of the Fund is to provide its shareholders with as high a level of
current income exempt from both federal and Kansas income tax as is consistent
with preservation of capital. The Fund will seek to achieve this objective
by investing primarily in a portfolio of Kansas municipal securities. Shares
of the Fund are offered at net asset value plus a maximum sales charge of
4.25% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investment security valuation - Investments in securities traded on national
securities exchanges are valued at the last reported sales price at the close
of each business day. Securities for which market quotations are not readily
available are valued at fair value as determined in good faith by the
portfolio management team. The Fund follows industry practice and records
security transactions on the trade date.

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.

Federal and state income taxes - The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies, and to distribute all of its net investment income and
any net realized gain on investments, to its shareholders. Therefore, no
provision for income taxes is required. The Fund has available at July 31,
1997, a net capital loss carryforward totaling $4,280,562, which may be used
to offset capital gains realized during subsequent years through July 31,
2005.

Distributions to shareholders - Dividends from net investment income, declared
daily and paid monthly, are reinvested in additional shares of the Fund at net
asset value or paid in cash. Capital gains, when available, are distributed
at least annually.

Investment income - Dividend income is recognized on the ex-dividend date and
interest income is recognized daily on an accrual basis. Premiums and
discounts on securities purchased are amortized using the effective interest
method over the life of the respective securities, unless callable, in which
case they are amortized to the earliest call date.

Futures contracts - The Fund may purchase and sell financial futures contracts
to hedge against changes in the values of tax-exempt municipal securities the
Fund owns or expects to purchase.

<PAGE>
A futures contract is an agreement between two parties to buy or sell units
of a particular index or a certain amount of U.S. Government or municipal
securities at a set price on a future date. Upon entering into a futures
contract, the Fund is required to deposit with a broker an amount of cash or
securities equal to the minimum "initial margin" requirement of the futures
exchange on which the contract is traded. Subsequent payments ("variation
margin") are made or received by the Fund, dependent on the fluctuations in
the value of the underlying index. Daily fluctuations in value are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
When entering into a closing transaction, the Fund will realize, for book
purposes, a gain or loss equal to the difference between the value of the
futures contracts sold and the futures contracts to buy. Unrealized
appreciation (depreciation) related to open futures contracts is required to
be treated as realized gain (loss) for Federal income tax purposes.

Certain risks may arise upon entering into futures contracts. These risks may
include changes in the value of the futures contracts that may not directly
correlate with changes in the value of the underlying securities.

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.

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 31, 1997, there were unlimited shares of no par authorized;
10,321,705 and 10,905,053 shares were outstanding at July 31, 1997 and
July 31, 1996, respectively.

Transactions in capital shares were as follows:

Shares
-------------------------------
For The For The
Year Ended Year Ended
July 31, 1997 July 31, 1996
-------------------------------
Shares sold 563,448 918,984
Shares issued on reinvestment of dividends 367,495 383,410
Shares redeemed (1,514,291) (1,174,350)
-------------------------------
Net increase (decrease) (583,348) 128,044
===============================

Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Ranson Capital Corporation, the Fund's investment adviser and underwriter, ND
Resources, Inc., the Fund's transfer and accounting services agent, and ND
Capital, Inc., the Fund's agent for the purchase of certain investment
securities, are subsidiaries of ND Holdings, Inc., the Fund's sponsor.

The Fund has engaged Ranson Capital Corporation, to provide investment
advisory and management services to the Fund. The Investment Advisory
Agreement provides for fees to be computed at an annual rate of 0.50% of the
Fund's average daily net assets. The Fund has recognized $650,009 of
investment advisory fees for the year ended July 31, 1997. The Fund has a
<PAGE>
payable to Ranson Capital Corporation of $53,230 at July 31, 1997 for
investment advisory fees. Certain officers and trustees of the Fund are also
officers and directors of the investment adviser.

The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1
under the 1940 Act, whereby the Fund shall pay at the annual rate of 0.25%
of the average daily net assets of the Fund to Ranson Capital Corporation
(Capital), its principal underwriter, for expenses incurred in the
distribution of the Fund's shares. Pursuant to the Plan, Capital is entitled
to reimbursement each month for its actual expenses incurred in the
distribution and promotion of the Fund's shares, including the printing of
prospectuses and reports used for sales purposes, expenses of preparation and
printing of sales literature and other such distribution related expenses,
including any distribution or service fees paid to securities dealers who have
executed a dealer sales agreement with Capital. Capital will be reimbursed at
an annual rate not to exceed 0.25% of the average daily net assets of the Fund
for the prior month. The Fund has recognized $325,005 of 12b-1 fee expenses
for the year ended July 31, 1997. The Fund has a payable to Capital of
$26,615 at July 31, 1997 for 12b-1 fees. In addition, the Fund has engaged ND
Capital Inc. as agent for the purchase of certain investment securities. For
the year ended July 31, 1997 commissions earned by ND Capital, Inc. totaled
$3,125 and are included in the cost basis of the securities acquired.

ND Resources, Inc., (the transfer agent), provides shareholder services for a
monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million
of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11%
of the Fund's net assets on the next $15 million, 0.10% of the Fund's net
assets on the next $10 million, and 0.09% of the Fund's net assets in excess
of $50 million. The Fund has recognized $133,688 of transfer agency fees for
the year ended July 31, 1997. ND Resources, Inc. also acts as the Fund's
accounting services agent for a monthly fee equal to the sum of a fixed fee
of $2,000, and a variable fee equal to 0.05% of the Fund's average daily net
assets on an annual basis for the Fund's first $50 million and at a lower
rate on the average daily net assets in excess of $50 million. The Fund has
recognized $77,994 of accounting service fees for the year ended July 31,
1997.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from sales of investment securities
(excluding short-term securities) aggregated $23,601,502 and
$29,827,729, respectively, for the year ended July 31, 1997.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1997, the aggregate cost of securities for federal income tax
purposes was $120,885,661, and the net unrealized appreciation of
investments based on the cost was $6,933,660, which is comprised of
$7,090,617 aggregate gross unrealized appreciation and $156,957 aggregate
gross unrealized depreciation.
<PAGE>

Financial Highlights Selected per share data and ratios for the period
indicated
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994 July 31, 1993
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.14 $ 12.07 $ 12.00 $ 12.67 $ 12.22
--------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income $ .61 $ .69 $ .65 $ .66 $ .69
Net realized and unrealized gain
(loss) on investments .28 .07 .07 (.53) .50
--------------------------------------------------------------------------------
Total From Investment Operations $ .89 $ .76 $ .72 $ .13 $ 1.19
--------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.61) $ (.69) $ (.65) $ (.66) $ (.69)
Distributions from net capital gains .00 .00 .00 (.14) (.05)
-------------------------------------------------------------------------------
Total Distributions $ (.61) $ (.69) $ (.65) $ (.80) $ (.74)
--------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.42 $ 12.14 $ 12.07 $ 12.00 $ 12.67
===============================================================================
Total Return 7.56%(A) 5.90%(A) 6.23%(A) 0.91%(A) 10.08%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $128,201 $ 132,349 $ 130,091 $ 127,337 $ 100,207
Ratio of net expenses (after expense
assumption) to average net assets 0.93%(B) 0.85%(B) 0.82%(B) 0.70%(B) 0.75%(B)
Ratio of net investment income to
average net assets 5.02% 5.18% 5.46% 5.26% 5.53%
Portfolio turnover rate 18.64% 20.14% 57.00% 55.00% 62.00%
</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed expenses of $46,741, $212,056, $295,875, $419,129,
and $282,407, respectively. If the expenses had not been
assumed, the annualized ratios of total expenses to average net assets
would have been 0.97%, 1.01%, 1.06%, 1.06%, and 1.13%, respectively.

<PAGE>
INDEPENDENT AUDITOR'S REPORT

To the Shareholders and Board of Trustees of
The Kansas Municipal Fund

We have audited the accompanying statement of assets and liabilities of The
Kansas Municipal Fund, (one of the portfolios constituting the Ranson Managed
Portfolios), including the schedule of investments, as of July 31, 1997, the
related statement of operations for the period then ended, the statement of
changes in net assets for each of the two years in the period then ended,
and the financial highlightsfor the two years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The
financial highlights for each of the three periods ended July 31, 1995, were
audited by other auditors whose report dated September 11, 1995, expressed
an unqualified opinion on those statements.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1997, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of The Kansas Municipal Fund of the Ranson Managed Portfolios, as of July 31,
1997, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for the two years in the peiod then ended, in
conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1997
<PAGE>
Dear Shareholders,

We are pleased to submit the annual report for The Kansas Insured Intermediate
Fund. Included with this report is a list of portfolio holdings, along with
the financial statements for the year ended July 31, 1997.

The Kansas Insured Intermediate Fund turned in steady performance for the
period. Net asset value per share was $12.19 at the beginning of the period
and increased to $12.23 by July 31, 1997.

Management Discussion and Analysis:

The pessimists look at the same data and put an entirely different spin on
things. They contend that the slowdown was inevitable from the first
quarter's robust 6 percent pace. Beneath the surface, growth resurgence will
rise with the tight labor market and a jobless rate hovering at a 24 year low.
Also supporting their views are climbing wages and an upbeat household sector
as indicated by consumer confidence.

During the second half of the fiscal year the Fund utilized a partial hedge.
Futures contracts in U.S. Treasury Bonds were employed. As interest rates
rose this had the effect of minimizing share price erosion. As interest rates
retreated share price increases were tempered. The overall effect to the
Fund during the year was a greater degree of share price stability.

Diversification remains an important strategy for the Fund. Among our
purchases during the year were bonds issued by housing authorities, school
districts and hospitals.

We would like to thank you for your support and look forward to serving you
in the future.

<PAGE>
Sincerely,

Robert E. Walstad Monte L. Avery
President Chief Portfolio Strategist

SHAREHOLDER REPORTS REVISED
- ---------------------------
Your fund's annual report is your best source for tracking the progress of
your investment. This report includes several changes that have been made
in an effort to provide additional information to you. In addition, the
coverletter includes commentary from your fund's portfolio manager on what
might be expected in the coming months. Specifically, your report now
includes:

* Terms you'd need to know related to your fund
* A look at your fund's portfolio composition
* The quality and years to maturity of the fund's underlying investments
* A look at your fund's average annual total returns

Terms & Definitions
- -------------------

Appreciation
Increase in value of an asset.

Average Annual Total Return
A standardized measurement of the return (yield and appreciation)
earned by the fund on an annual basis.

Coupon Rate or Face Rate
The rate of interest annually payable based on the face amount of the
bond; expressed as a percentage.

Depreciation
Decrease in value of an asset.

Duration
A measurement of a security or a portfolio's price volatility based
on maturity, callability and coupon rate. The larger the number, the
greater the price change for a given interest rate change.

Market Value
Actual (or estimated) price at which a bond trades in the market place.

Maturity
A measure of the term or life of a bond in years. When a bond "matures",
the issuer repays the principal.

<PAGE>
Net Asset Value (NAV)
The value of all your fund's assets, minus any liabilities, divided by the
number of outstanding shares, not including any initial or contingent
deferred sales charge.

Total Return
Measures both the net investment income and any realized and unrealized
appreciation or depreciation of the underlying investments in the fund's
portfolio for the period, assuming the reinvestment of all dividends.
It represents the aggregate percentage or dollar value change over the
period.

PERFORMANCE AND COMPOSITION
- ---------------------------

Portfolio Quality Ratings
(based on Total Long-Term Investments)
- --------------------------------------
[pie chart]
AAA 100.0%

Portfolio Market Sectors
(as a % of Market Value)
- ------------------------
[pie chart]
I-Insured 100.0%

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.

COMPARATIVE INDEX GRAPH
- -----------------------
[line graph]
Comparison of change in value of $10,000 investment in The
Kansas Insured Intermediate Fund and Lehman Brosthers Municipal
7 Year Maturity Bond Index

The Kansas Insured The Kansas Insured Lehman Brothers
Intermediate Fund Intermediate Fund Municipal 7 Year
w/o sales charge w/ max sales charge Maturity Bond Index
---------------------------------------------------------------
11/23/1992 $10,000 $ 9,725 $10,000
1993 $10,829 $10,531 $10,694
1994 $11,025 $10,722 $10,981
1995 $11,656 $11,335 $11,869
1996 $12,326 $11,987 $12,470
1997 $12,912 $12,557 $13,548

<PAGE>
Putting Performance into Perspective
The graph comparing your Fund's performance to a benchmark index provides you
with a general sense of how your Fund performed. To put this information in
context, it may be helpful to understand the special differences between the
two. Your Fund's total return for the period shown appears with and without
sales charges and includes Fund expenses and management fees. A securities
index measures the performance of a theoretical portfolio. Unlike a fund, the
index is unmanaged; there are no expenses that affect the results. In
addition, few investors could purchase all of the securities necessary to
match the index. And, if they could, they would incur transaction costs and
other expenses.

KEY STATISTICS
- --------------

07-31-96 NAV(share value) $12.19
07-31-97 NAV $12.23
Average Maturity 8.7 years
Average Duration 6.4 years
Number of Issues 65
Total Net Assets $25,533,418

AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------

For periods ending July 31, 1997
- ---------------------------------------------------
1 year 5 year Since Inception
- ---------------------------------------------------
4.76%* N/A 5.60%*

*The 1 year and Since Inception returns do not include the effect of the
2.75% maximum sales charges. They would have been 1.88% and 4.98%
respectively, if they had. Returns are historical and are not a guarantee of
future results. The Fund's share price, yields and total returns will vary,
so that shares, when redeemed, may be worth more or less than their original
cost.
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments July 31, 1997

Ratings
(Unaudited)
Name of Issuer ---------------
Percentages represent the market value Std. & Coupon Principal Market
of each investment category to total net assets Moody's Poor's Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (103.1%)

Bourbon Co., KS USD #234 (Fort Scott) Building FSA Insured Aaa AAA 6.000% 09/01/10 $ 380,000 $ 410,130
Bourbon Co., KS USD #234 (Fort Scott) Building FSA Insured Aaa AAA 6.000 09/01/11 400,000 431,232
Butler Co., KS (Augusta) USD #402 G.O. AMBAC Insured Aaa AAA 5.400 10/01/06 200,000 211,662
Chanute, KS Electric Light, Water & Gas Sys. Ref. Rev.
MBIA Insured Aaa AAA 5.875 05/01/04 500,000 527,780
Derby, KS Sewer Utility System Rev. AMBAC Insured Aaa AAA 5.000 08/01/08 340,000 343,142
Douglas Co., KS USD #491 (Eudora) G.O. School Bldg.
Ref. & Imp. AMBAC Insured Aaa AAA 7.750 03/01/01 190,000 211,557
*Douglas Co., KS USD #491 (Eudora) G.O. School Bldg.
Ref. & Imp. AMBAC Insured Aaa AAA 7.750 03/01/03 255,000 296,241
*Douglas Co., KS (Lawrence) USD #497 G.O. FGIC Insured Aaa AAA 7.200 09/01/02 1,370,000 1,541,743
Franklin Co., KS G.O. FGIC Insured Aaa AAA 6.100 09/01/02 100,000 104,185
Johnson/Miami Cos., KS (Spring Hill) G.O. FGIC Insured Aaa AAA 5.250 12/01/05 350,000 364,210
Johnson Co., KS (DeSoto) USD #232 G.O. CGIC Insured Aaa AAA 5.400 03/01/03 100,000 105,223
Johnson Co., KS (DeSoto) USD #232 G.O. MBIA Insured Aaa NR 5.100 09/01/08 425,000 437,087
Johnson Co., KS (DeSoto) USD #232 G.O. MBIA Insured Aaa NR 5.150 09/01/09 510,000 525,188
Johnson Co., KS (DeSoto) USD #232 G.O. MBIA Insured Aaa NR 5.200 09/01/10 600,000 618,864
Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured Aaa AAA 5.650 09/01/03 1,485,000 1,579,995
Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured Aaa AAA 6.150 03/01/07 300,000 325,110
Kansas City, KS (Srs. of Prov.-St. Margaret Hlth. Ctr.)
AMBAC Insured Aaa AAA 5.700 08/01/03 250,000 263,500
Kansas City, KS Special Obligation ESCROWED in U.S. Govts. Aaa AAA 6.000 02/15/03 200,000 214,746
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
MBIA Insured Aaa AAA 5.700 11/15/08 450,000 480,807
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
MBIA Insured Aaa AAA 5.300 11/15/04 250,000 259,802
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
MBIA Insured Aaa AAA 5.400 11/15/05 475,000 497,420
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
MBIA Insured Aaa AAA 5.600 11/15/07 100,000 106,661
KS Devl. Finance Auth. Pooled Ref. Lease Rev. MBIA Insured Aaa AAA 5.500 10/01/05 250,000 265,533
KS Devl. Finance Auth. MultiFamily Hsg. Rev. NR AAA 5.700 12/01/09 325,000 327,353
KS Devl. Finance Auth. (Hays Med. Ctr.) Rev. MBIA Insured Aaa AAA 5.200 11/15/08 375,000 387,525
KS Devl. Finance Auth. (Hays Med. Ctr.) Rev. MBIA Insured Aaa AAA 5.300 11/15/09 375,000 386,786
KS State Turnpike Auth. Rev. FGIC Insured Aaa AAA 5.450 09/01/10 200,000 209,256
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev.
MBIA Insured Aaa AAA 5.200 11/15/02 160,000 166,523
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev.
MBIA Insured Aaa AAA 5.300 11/15/03 170,000 177,623
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev.
MBIA Insured Aaa AAA 5.400 11/15/04 155,000 163,038
Leavenworth Co., KS USD #469 (Lansing) FSA Insured NR AAA 5.050 09/01/11 500,000 503,405
Lenexa, KS (Barrington Park) MultiFamily Hsg. Rev. Ref.
ASSET GUAR. Insured Aaa AAA 5.875 02/01/04 500,000 513,690
Lenexa, KS (Barrington Park) MultiFamily Hsg. Rev. Ref.
ASSET GUAR. Insured Aaa AAA 5.950 02/01/05 250,000 258,775
Linn Co., KS (Prairie View) USD #362 G.O. ASSET
GUAR. Insured Aaa AA 5.500 11/01/09 500,000 519,735
McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured Aaa AAA 5.500 09/01/05 100,000 106,852
McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured Aaa AAA 5.700 09/01/06 400,000 430,972
McPherson Co., KS USD #448 G.O. FSA Insured Aaa NR 5.950 09/01/10 365,000 394,700
McPherson Co., KS USD #448 G.O. FSA Insured Aaa NR 5.950 09/01/11 390,000 420,900
Miami Co., KS Rural Water Dist. #2 Ref. Rev.
ASSET GUAR. Insured Aaa AA 5.750 12/01/04 225,000 233,183
Olathe, KS (Evang. Luth. Good Samaritan Soc.)
AMBAC Insured Aaa AAA 5.200 05/01/01 140,000 144,591
Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured Aaa AAA 5.400 05/01/02 150,000 156,746
Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured Aaa AAA 5.500 05/01/03 110,000 115,843
Olathe, KS (Medical Center) Hlth. Facs. Rev. Ref.
AMBAC Insured Aaa AAA 5.600 09/01/05 1,000,000 1,064,440
Salina, KS (Asbury-Salina Regl. Med. Ctr.) Hosp. Rev.
Ref. AMBAC Insured Aaa AAA 5.000 10/01/04 300,000 308,184
Sedgwick/Shawnee Cos., KS Coll. Single Family Mtg.
GNMA Gtd. Aaa AAA 5.250 11/01/04 175,000 176,005
Sedgwick Co., KS (Maize) USD #266 G.O. CGIC Insured Aaa AAA 5.500 09/01/05 300,000 320,037
Sedgwick Co., KS (Maize) USD #266 G.O. CGIC Insured Aaa AAA 5.600 09/01/06 200,000 214,740
Sedgwick Co., KS (Renwick) USD #267 G.O. AMBAC Insured Aaa AAA 5.850 11/01/06 290,000 313,954
Sedgwick Co., KS (Renwick) USD #267 G.O. AMBAC Insured Aaa AAA 6.000 11/01/07 570,000 604,485
Seward Co., KS G.O. Hospital Ref. AMBAC Insured Aaa AAA 5.600 08/15/04 100,000 105,478
Seward Co., KS G.O. Hospital Ref. AMBAC Insured Aaa AAA 5.600 08/15/04 150,000 158,217
Shawnee Co. KS USD #437 (Auburn-Wash) AMBAC Insured Aaa AAA 6.700 09/01/00 415,000 446,768
Shawnee Co. KS USD #437 (Auburn-Wash) AMBAC Insured Aaa AAA 6.625 09/01/01 475,000 516,838
Shawnee Co., KS (Shawnee Heights) USD #450 G.O.
CGIC Insured Aaa AAA 6.500 09/01/00 250,000 267,778
Shawnee Co., KS (Topeka) USD #501 G.O. FGIC Insured Aaa AAA 5.550 02/01/07 820,000 870,643
Wichita, KS Airport Auth. Facs Ref. Rev. ASSET
GUAR. Insured Aaa AAA 7.000 03/01/05 100,000 106,814
Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs.
Imp. & Ref. MBIA Insured Aaa AAA 6.000 10/01/03 250,000 263,125
Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs.
Imp. & Ref. MBIA Insured Aaa AAA 6.100 10/01/04 775,000 821,888
Wichita, KS Multifamily Housing Rev. FNMA Insured NR AAA 5.375 07/01/10 625,000 627,769
Wichita, KS Water & Sewer Util. Ref. & Imp. Rev.
FGIC Insured Aaa AAA 5.600 04/01/05 610,000 648,442
Wichita, KS Water & Sewer Util. Ref. & Imp. Ref.
FGIC Insured Aaa AAA 5.750 10/01/06 150,000 159,162
Wichita, KS Water & Sewer Util. Rev. FGIC Insured Aaa AAA 5.000 10/01/11 500,000 500,675
Winfield, KS Electric Sys. Ref. Rev. AMBAC Insured Aaa AAA 5.000 09/01/04 580,000 599,024
Wyandotte Co., KS G.O. Ref. & Imp. FGIC Insured Aaa AAA 7.000 09/01/05 1,020,000 1,072,397
Wyandotte Co., KS USD #204 (Bonner Springs) AMBAC Insured Aaa AAA 5.200 09/01/04 400,000 419,168
-----------
TOTAL KANSAS MUNICIPAL BONDS (COST: $25,368,986) $26,325,345
-----------
SHORT TERM SECURITIES (0.7%)
Federated Intermediate Municipal Trust $ 73,476
Federated Tax-Free Trust 93,350
-----------
TOTAL SHORT TERM SECURITIES (COST: $166,266) $ 166,826
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $25,535,252) $26,492,171

OTHER ASSETS LESS LIABILITIES(-3.8%) (958,753)
-----------
NET ASSETS $25,533,418
===========
</TABLE>
*Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.

The accompanying notes are an integral part of these financial statements.

<PAGE>
Financial Statements July 31, 1997

Statement of Assets and Liabilities July 31, 1997
- -------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in securities, at value (cost: $25,535,252) $ 26,492,171
Cash 27,421
Accrued dividends receivable 1,900
Accrued interest receivable 468,310
Deferred organization costs 1,551
----------------
Total Assets $ 26,991,353
----------------

Liabilities
Dividends payable $ 92,993
Accrued expenses 16,020
Payable for fund shares redeemed 5,017
Security purchases payable 1,343,902
Commissions payable 3
----------------
Total Liabilities $ 1,457,935
----------------

Net Assets $ 25,533,418
================
Net asset value per share, 2,086,938 shares outstanding $ 12.23
================

Statement of Operations for the year ended July 31, 1997

INVESTMENT INCOME
Interest $ 1,387,755
Dividends 18,227
----------------
Total Investment Income $ 1,405,982
----------------

EXPENSES
Investment advisory fees $ 138,457
Custodian fees 5,481
Transfer agent fees 38,157
Accounting service fees 37,836
Audit and legal fees 5,820
Trustees' fees 2,985
Printing & postage 9,802
License, fees & registrations 2,047
Insurance 1,503
Amortization of organization costs 7,715
----------------
Total Expenses $ 249,803
Less expenses waived or absorbed
by the Fund's manager 40,608
----------------
Total Net Expenses $ 209,195
----------------
NET INVESTMENT INCOME $ 1,196,787
----------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 36,621
Futures transactions (448,223)
Net unrealized appreciation (depreciation) on investments 525,690
----------------
Net Realized and Unrealized Gain (Loss) on Investments
and Futures $ 114,088
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,310,875
================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>

Financial Statements July 31, 1997

Statement of Changes in Net Assets
For the years ended July 31, 1997 and July 31, 1996
- --------------------------------------------------
<TABLE>
<CAPTION>
For The For The
Year Ended Year Ended
July 31, 1997 July 31, 1996
----------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 1,196,787 $ 1,366,829
Net realized gain (loss) on investment and futures transactions (411,602) 46,810
Net unrealized appreciation (depreciation) on investments 525,690 340,266
----------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 1,310,875 $ 1,753,905
----------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income $ (1,196,787) $ (1,366,829)
Distributions from net realized gain on investment transactions 0 0
----------------------------------
Total Dividends and Distributions $ (1,196,787) $ (1,366,829)
----------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 1,355,388 $ 2,780,585
Proceeds from reinvested dividends 720,398 811,269
Cost of shares redeemed (7,220,379) (4,093,311)
----------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (5,144,593) $ (501,457)
----------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ (5,030,505) $ (114,381)

NET ASSETS, BEGINNING OF PERIOD 30,563,923 30,678,304
----------------------------------
NET ASSETS, END OF PERIOD $ 25,533,418 $ 30,563,923
==================================
</TABLE>
The accompanying notes are an integral part of these financial statements.

<PAGE>
Notes to Financial Statements July 31, 1997

Note 1. ORGANIZATION

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 four 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.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal and Kansas income tax
as is consistent with preservation of capital. The Fund will seek to achieve
this objective by investing primarily in a portfolio of Kansas insured
securities. Shares of the Fund are offered at net asset value plus a maximum
sales charge of 2.75% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 July 31, 1997 totaled $35,949.

Federal and state income taxes - The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies, and to distribute all of its net investment income and
any net realized gain on investments, to its shareholders. Therefore, no
provision for income taxes is required. The Fund has available at July 31,
1997, a net capital loss carryforward totaling $717,376, which may be used
to offset capital gains realized during subsequent years through July 31,
2005.

Distributions to shareholders - Dividends from net investment income,
declared daily and payable monthly, are reinvested in additional shares of the
Fund at net asset value or paid in cash. Capital gains, when available, are
distributed at least annually.

<PAGE>
Futures contracts - The Fund may purchase and sell financial futures to hedge
against changes in the values of tax-exempt municipal securities the Fund owns
or expects to purchase.

A futures contract is an agreement between two parties to buy or sell units
of a particular index or a certain amount of U.S. Government or municipal
securities at a set price on a future date. Upon entering into a futures
contract, the Fund is required to deposit with a broker an amount of cash or
securities equal to the minimum "initial margin" requirement of the futures
exchange on which the contract is traded. Subsequent payments ("variation
margin") are made or received by the Fund, dependent on the fluctuations in
the value of the underlying index. Daily fluctuations in value are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
When entering into a closing transaction, the Fund will realize, for book
purposes, a gain or loss equal to the difference between the value of the
futures contracts sold and the futures contracts to buy. Unrealized
appreciation (depreciation) related to open futures contracts is required to
be treated as realized gain (loss) for Federal income tax purposes.

Certain risks may arise upon entering into futures contracts. These risks
may include changes in the value of the futures contracts that may not
directly correlate with changes in the value of the underlying securities.

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 31, 1997, there were unlimited shares of no par authorized;
2,086,938 and 2,507,133 shares were outstanding at July 31, 1997 and July 31,
1996, respectively.

Transactions in capital shares were as follows:

Shares
------------------------------
For The For The
Year Ended Year Ended
July 31, 1997 July 31, 1996
------------------------------
Shares sold 110,692 227,680
Shares issued on reinvestment of dividends 58,878 66,410
Shares redeemed (589,765) (335,874)
------------------------------
Net increase (decrease) (420,195) (41,784)
==============================

Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Ranson Capital Corporation, the Fund's investment adviser and underwriter, and
ND Resources, Inc., the Fund's transfer and accounting services agent, are
subsidiaries of ND Holdings, Inc., the Fund's sponsor.

<PAGE>
The Fund has engaged Ranson Capital Corporation, to provide investment
advisory and management services to the Fund. The Investment Advisory
Agreement provides for fees to be computed at an annual rate of 0.50% of
the Fund's average daily net assets. The Fund has recognized $138,457 of
investment advisory fees for the year ended July 31, 1997. The Fund has a
payable to Ranson Capital Corporation of $10,680 at July 31, 1997 for
investment advisory fees. Certain officers and trustees of the Fund are also
officers and directors of the investment adviser.

ND Resources, Inc., (the transfer agent), provides shareholder services for a
monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million
of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11%
of the Fund's net assets on the next $15 million, 0.10% of the Fund's net
assets on the next $10 million, and 0.09% of the Fund's net assets in excess
of $50 million. The Fund has recognized $38,157 of transfer agency fees for
the year ended July 31, 1997. ND Resources, Inc. also acts as the Fund's
accounting services agent for a monthly fee equal to the sum of a fixed fee of
$2,000, and a variable fee equal to 0.05% of the Fund's average daily net
assets on an annual basis for the Fund's first $50 million and at a lower
rate on the average daily net assets in excess of $50 million. The Fund has
recognized $37,836 of accounting service fees for the year ended July 31,
1997.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $7,745,107 and $11,372,800,
respectively, for the year ended July 31, 1997.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1997, the aggregate cost of securities for federal income tax
purposes was $25,535,252, and the net unrealized appreciation of investments
based on the cost was $956,919, which is comprised of $956,919 aggregate
gross unrealized appreciation.
<PAGE>

Financial Highlights Selected per share data and ratios for the period
indicated
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
Since Inception
For the For the For the For the (Nov. 23, 1992)
Year Ended Year Ended Year Ended Year Ended to
July 31, 1997 July 31, 1996 July 31, 1995 July 31, 1994 July 31, 1993
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.19 $ 12.04 $ 11.92 $ 12.24 $ 11.59
-------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income $ .53 $ .53 $ .54 $ .52 $ .32
Net realized and unrealized gain
(loss) on investments .04 .15 .12 (.30) .65
-------------------------------------------------------------------------------
Total From Investment Operations $ .57 $ .68 $ .66 $ .22 $ .97
-------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.53) $ (.53) $ (.54) $ (.52) $ (.32)
Distributions from net capital gains .00 .00 .00 (.02) .00
-------------------------------------------------------------------------------
Total Distributions $ (.53) $ (.53) $ (.54) $ (.54) $ (.32)
-------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.23 $ 12.19 $ 12.04 $ 11.92 $ 12.24
===============================================================================
Total Return 4.76%(A) 5.75%(A) 5.72%(A) 1.81%(A) 13.50%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $25,533 $30,564 $30,678 $31,216 $22,110
Ratio of net expenses (after
expense assumption) to average
net assets 0.76%(C) 0.69%(C) 0.62% (C) 0.51% (C) 0.33%(B)(C)
Ratio of net investment income to
average net assets 4.33% 4.37% 4.57% 4.26% 4.41%(B)
Portfolio turnover rate 28.68% 19.96% 63.00% 56.00% 152.00%
</TABLE>

(A) Excludes maximum sales charge of 2.75%.
(B) Ratio was annualized.
(C) During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed expenses of $40,608, $71,943, $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
0.90%, 0.92%, 0.98%, 0.99%, and 1.24%, respectively.

<PAGE>
INDEPENDENT AUDITOR'S REPORT

To the Shareholders and Board of Trustees of
The Kansas Insured Intermediate Fund

We have audited the accompanying statement of assets and liabilities of The
Kansas Insured Intermediate Fund, (one of the portfolios constituting the
Ranson Managed Portfolios), including the schedule of investments, as of July
31, 1997, the related statement of operations for the period then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and the financial highlights for the two years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audit. The financial highlights for each of the periods in the
years ended July 31, 1995, 1994, and 1993, were audited by other auditors
whose report dated September 11, 1995, expressed an unqualified opinion on
those statements.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 1997, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Kansas Insured Intermediate Fund of the Ranson Managed Portfolios, as of July
31, 1997, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for the two years in the period then ended, in conformity
with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1997
<PAGE>
Dear Shareholders,

We are pleased to submit the annual report for The Nebraska Municipal Fund.
Included with this report is a list of portfolio holdings, along with the
financial statements for the year ended July 31, 1997.

The Nebraska Municipal Fund turned in steady performance for the period. Net
asset value per share was $11.00 at the beginning of the period and increased
to $11.26 by July 31, 1997.

Management Discussion and Analysis:

During the second half of the fiscal year the Fund utilized a partial hedge.
Futures contracts in U.S. Treasury Bonds were employed. As interest rates
rose this had the effect of minimizing share price erosion. As interest rates
retreated share price increases were tempered. The overall effect to the
Fund during the year was a greater degree of share price stability.

Diversification remains an important strategy for the Fund. Among our
purchases during the firs half of the year were bonds issued by housing
authorities, school districts, hospitals and utilities.

We would like to thank you for your support and look forward to serving you
in the future.

Sincerely,

<PAGE>

Robert E. Walstad Monte L. Avery
President Chief Portfolio Strategist

SHAREHOLDER REPORTS REVISED
- ---------------------------

Your fund's annual report is your best source for tracking the progress of
your investment. This report includes several changes that have been made in
an effort to provide additional information to you. In addition, the cover
letter includes commentary from your fund's portfolio manager on what might be
expected in the coming months. Specifically, your report now includes:

Terms & Definitions
- -------------------

Appreciation
Increase in value of an asset.

Average Annual Total Return
A standardized measurement of the return (yield and appreciation) earned
by the fund on an annual basis.

Coupon Rate or Face Rate
The rate of interest annually payable based on the face amount of the
bond; expressed as a percentage.

Depreciation
Decrease in value of an asset.

Market Value
Actual (or estimated) price at which a bond trades in the market place.

Maturity
A measure of the term or life of a bond in years. When a bond "matures",
the issuer repays the principal.

Net Asset Value (NAV)
The value of all your fund's assets, minus any liabilities, divided by
the number of outstanding shares, not including any initial or contingent
deferred sales charge.
<PAGE>
Quality Ratings
A designation assigned by independent rating companies to give a relative
indication of a bond's credit worthiness. "AAA", "AA" and "A" indicate
highest quality. Ratings can range from a high of "AAA" to a low of "D".

PERFORMANCE AND COMPOSITION
- ---------------------------

Portfolio Ratings
(based on Total Long-Term Investments)
- --------------------------------------
[pie chart]
AAA 46.6%
AA 21.3%
A 17.7%
BBB 0.4%
NR 14.0%
(non-rated)

Portfolio Market Sectors
(as a % of Market Value)
- ------------------------
[pie chart]
Housing 21.9%
Insured/Guaranteed 21.7%
Utilities 20.1%
Education 15.1%
General Obligation 10.5%
Real Estate 8.7%
Health Care 2.0%

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.

COMPARATIVE INDEX GRAPH
- -----------------------
[line graph]
Comparison of change in value of a $10,000 investment in The
Nebraska Municipal Fund and the Lehman Brothers Municipal
Bond Index

The Nebraska The Nebraska The Lehman Brothers
Municipal Fund Municipal Fund Municipal
w/o sales charge w/ max sales charge Bond Index
----------------------------------------------------------------
11/17/93 $10,000 $ 9,575 $10,000
<PAGE>
1994 $ 9,773 $ 9,357 $ 9,892
1995 $10,471 $10,026 $10,673
1996 $11,071 $10,600 $11,376
1997 $11,909 $11,402 $12,544

KEY STATISTICS
- --------------

07-31-96 NAV(share value) $11.00
07-31-97 NAV $11.26
Average Maturity 20.4 years
Average Duration 7.4 years
Number of Issues 70
Total Net Assets $27,801,554

AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------

For periods ending July 31, 1997
- ---------------------------------------------------
1 year 5 year Since Inception
- ---------------------------------------------------
7.57%* N/A 4.83%*

*The 1 year and Since Inception returns do not include the effect of the
4.25% maximum sales charges. They would have been 2.99% and 3.61%
respectively, if they had. Returns are historical and are not a guarantee
of future results. The Fund's share price, yields and total returns will
vary, so that shares, when redeemed, may be worth more or less than their
original cost.
<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments July 31, 1997
Ratings
(Unaudited)
Name of Issuer ----------------
Percentages represent the market value Std. & Coupon Principal Market
of each investment category to net assets Moody's Poor's Rate Maturity Amount Value
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NEBRASKA MUNICIPAL BONDS (98.1%)

GENERAL OBLIGATION
Hemingford, NE General Obligation NR NR 5.600% 02/15/12 $ 115,000 $ 117,974
Lincoln/Lancaster Counties, NE Pub. Bldg.
Comm. Tax Lease Rental Aa AA+ 5.800 10/15/18 725,000 779,223
Lincoln/Lancaster Counties, NE Pub. Bldg.
Comm. Rev. Aa AA+ 5.875 10/15/23 850,000 894,081
Lincoln, NE G.O. Storm Sewer & Drainage System Aa AAA 5.500 06/01/14 200,000 207,512
Lincoln, NE G.O. Various Purpose Aa AAA 5.500 12/01/15 200,000 207,096
Omaha, NE Various Purpose Aaa AAA 6.250 12/01/12 250,000 275,940
Omaha, NE Various Purpose Aaa AAA 6.250 12/01/14 250,000 276,185
Papillion, NE General Obligation NR NR 6.150 07/01/12 105,000 109,518
-----------
$ 2,867,529
-----------
HEALTH CARE
Hall Co., NE Hosp. Auth. (Regency Rtmt.) Rev. NR NR 6.000% 12/01/18 $ 85,000 $ 83,519
Lancaster Co., NE (Lincoln Med. Ed. Fdn. Hosp.)
Hosp. Auth. #1 NR NR 5.700 02/01/11 100,000 103,479
Lancaster Co., NE (Lincoln Med. Ed. Fdn. Hosp.)
Hosp. Auth. #1 NR NR 5.800 02/01/12 175,000 181,260
NE Invt. Finance Auth. (Great Plains Regl.
Med. Ctr.) Rev. NR AA 6.500 05/15/14 150,000 161,816
-----------
$ 530,074
-----------
HOUSING
NE Invt. Finance Auth. (Muirfield Greens)
Multifamily Rev. Aa NR 6.800% 12/01/15 $ 380,000 $ 395,933
NE Invt. Finance Auth. (Muirfield Greens)
Multifamily Rev. Aa NR 6.850 12/01/25 525,000 550,967
*NE Invt. Finance Auth. Single Family Hsg. Rev. NR AAA 6.600 09/01/20 710,000 727,395
NE Invt. Finance Auth. Single Family Hsg. Rev. NR AAA 6.500 09/01/18 400,000 404,568
NE Invt. Finance Auth. Single Family Hsg. Rev. NR AAA 5.850 09/01/17 1,800,000 1,805,688
NE Invt. Finance Auth. Single Family Hsg. Rev. Aaa AAA 6.300 09/01/28 1,110,000 1,117,437
NE Invt. Finance Auth. Single Family Hsg. Rev. NR AAA 5.850 09/01/28 470,000 471,993
NE Invt. Finance Auth. Multifamily Hsg. Rev. NR AAA 6.200 06/01/28 500,000 501,315
-----------
$ 5,975,296
-----------
INSURED/GUARANTEED
Buffalo Co., NE (Srs. Charity Hlth. Care) Hosp.
Auth. MBIA Insured Aaa AAA 6.375% 05/15/04 $ 250,000 $ 270,740
*Buffalo Co., NE (Srs. Charity Hlth. Care) Hosp.
Rev. MBIA Insured Aaa AAA 6.625 05/15/09 300,000 328,356
Cass Co., NE School District #001 G.O.
FGIC Insured Aaa AAA 6.250 12/01/14 300,000 325,371
Cass Co., NE School District #001 G.O.
FGIC Insured Aaa AAA 6.350 12/01/19 300,000 328,779
Douglas Co., NE Hosp. Auth. (Alegent Hlth.
Immanuel) AMBAC Insrd. Aaa AAA 5.250 09/01/21 250,000 245,575
Douglas Co., NE Hosp. Dist. #2 (Cath. Hlth.
Corp.) Rev. MBIA Insured Aaa AAA 5.500 11/15/21 340,000 347,677
Gage Co., NE SD #15 G.O. AMBAC Insured NR AAA 5.900 12/15/16 850,000 897,447
Lancaster Co., NE School District #145
(Waverly) AMBAC Insured Aaa AAA 5.500 12/01/16 100,000 103,375
Lincoln, NE (Lincoln Gen. Hosp.) Rev. & Ref.
CGIC Insured Aaa AAA 6.200 12/01/14 50,000 54,362
NE Education Finance Auth. (Creighton Univ.)
Rev. AMBAC Insured Aaa AAA 5.950 01/01/11 300,000 316,440
NE Invt. Finance Auth. Single Family Hsg.
Rev. GNMA Gtd. NR AAA 6.200 09/01/17 250,000 254,537
NE Invt. Finance Auth. Single Family Hsg.
Rev. GNMA Gtd. Aaa AAA 6.250 03/01/21 300,000 302,238
NE Invt. Finance Auth. Multifamily Hsg.
Rev. GNMA Gtd. NR AAA 6.000 06/01/17 500,000 502,340
NE Invt. Finance Auth. Multifamily Hsg. Rev.
GNMA Gtd. NR AAA 6.100 06/01/29 500,000 502,045
Northeast NE Solid Waste Facility Rev.
MBIA Insured Aaa AAA 5.900 05/15/15 600,000 624,900
Omaha, NE Airport Auth. Rev. Ref. MBIA Insured Aaa AAA 5.250 01/01/13 100,000 101,702
Otoe Co., NE School District #111
(Nebraska City) AMBAC Insured Aaa AAA 5.800 11/15/14 400,000 425,956
-----------
$ 5,931,840
-----------
REAL ESTATE
David City, NE (Henningsen Foods) IDR NR NR 6.400% 12/15/02 $ 25,000 $ 25,861
Douglas Co., NE G.O. Sanitary & Improvement
Dist. #295 NR NR 6.500 06/01/17 750,000 780,638
Northeast NE Juvenile Ser. Auth. Rev. NR NR 6.375 06/01/17 280,000 284,875
Omaha, NE Parking Facilities Corp.
(Omaha Park 4/5) Lse. Rev. Aa-1 AAA 5.700 09/15/15 750,000 785,842
Sarpy Co., NE (Willow Springs) San. & Impt.
Dist. #86 Ref. NR NR 6.250 01/15/17 100,000 103,193
Sarpy Co., NE (Prairie Corners) San & Impt.
Dist. #52 NR NR 6.000 10/01/17 300,000 304,743
Sarpy Co., NE (Fair Meadows) SID #142 G.O. NR NR 5.850 08/15/17 100,000 100,454
-----------
$ 2,385,606
-----------
EDUCATION
Chadron St. College, NE Student Fees & Facs.
Rev. Ref. NR NR 5.700% 07/01/11 $ 300,000 $ 304,422
Cuming Co., NE School District #020
(Bancraft/Rosalie) NR NR 5.750 12/15/17 100,000 102,875
Kearney Co., NE School District #503 G.O. NR NR 6.150 12/15/12 100,000 103,966
Merrick Co., NE School District #49 G.O. NR NR 6.200 07/01/10 45,000 47,093
Merrick Co., NE School District #49 G.O. NR NR 6.250 07/01/14 50,000 52,977
NE Higher Education Loan Pgm. Junior
Subord. Term A NR 6.450 06/01/18 400,000 426,176
NE Higher Education Loan Pgm. Senior
Subord. Term Aa NR 6.250 06/01/18 800,000 833,312
NE Higher Education Loan Pgm. (Student Loan) Rev. A NR 5.875 06/01/14 1,350,000 1,376,311
NE Educ. Finance Auth. (Midland Luth.
College) Rev. NR NR 6.250 06/15/15 100,000 103,223
NE State Education Service Unit #3 Rev. NR NR 5.500 06/01/13 500,000 509,100
Washington Co., NE School District #1
General Obligation NR A 5.800 07/15/11 100,000 104,905
Washington Co., NE (Blair) School District #1
General Obligation NR A 5.900 07/15/15 135,000 143,529
-----------
$ 4,107,889
-----------
UTILITIES
Beatrice, NE Combined Utilities Rev. NR NR 5.600% 09/15/10 $ 120,000 $ 122,947
Beatrice, NE Combined Utilities Rev. NR NR 5.700 09/15/11 125,000 128,224
Grand Island, NE Sewer System Rev. A NR 6.000 04/01/14 280,000 303,920
Hastings, NE Electric Rev. A A 6.300 01/01/19 370,000 402,556
Kearney, NE Combined Utilities Rev. A NR 6.100 06/01/14 600,000 638,958
Lincoln, NE Electric System Rev. Aa AA+ 5.750 09/01/16 750,000 787,395
NE Public Power Dist. Power Supply System Rev. A-1 A+ 6.125 01/01/15 390,000 418,388
NE Public Power Dist. Power Supply System Rev. A-1 A+ 5.750 01/01/20 990,000 1,028,808
Omaha, NE Public Power Dist. Electric System Rev. Aa AA+ 5.700 02/01/17 250,000 261,443
Omaha, NE Public Power Dist. Electric System Rev. Aa AA 5.600 02/01/12 80,000 82,981
Omaha, NE Public Power Dist. Electric System Rev. NR AA 6.000 02/01/15 330,000 345,540
Omaha, NE Public Power Dist. Electric System Rev. Aa AA 6.200 02/01/17 650,000 710,567
York, NE Sewer System Rev. NR NR 5.850 06/01/12 140,000 146,895
York, NE Sewer System Rev. NR NR 6.000 06/01/17 100,000 106,107
-----------
$ 5,484,729
-----------

TOTAL NEBRASKA MUNICIPAL BONDS (COST: $26,181,392) $27,282,963
-----------
SHORT -TERM SECURITIES (1.0%)
Federated Tax-Free Trust $ 133,037
Federated Intermediate Municipal Trust 135,767
-----------
TOTAL SHORT-TERM SECURITIES (COST: $266,649) $ 268,804
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $26,448,041) $27,551,767
OTHER ASSETS LESS LIABILITIES (0.9%) 249,787
-----------
NET ASSETS $27,801,554
===========
*Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.

</TABLE>
The accompanying notes are an integral part of these financial statements.

<PAGE>
Financial Statements July 31, 1997

Statement of Assets and Liabilities July 31, 1997
- -------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in securities, at value (Cost: $26,448,041) $ 27,551,767
Cash 18,663
Accrued interest receivable 372,083
Accrued dividends receivable 2,877
Receivable for fund shares sold 586
Security sales receivable 398,449
Deferred organization costs 7,349
--------------
Total Assets $ 28,351,774
--------------

Liabilities
Dividends payable $ 118,875
Accrued expenses 14,350
Security purchases payable 345,566
Payable for fund shares redeemed 71,429
--------------
Total Liabilities $ 550,220
--------------

Net Assets $ 27,801,554
==============

Net asset value per share, 2,468,032 shares outstanding $ 11.26
==============

Statement of Operations for the year ended July 31, 1997

INVESTMENT INCOME
Interest $ 1,373,876
Dividends 22,008
--------------
Total Investment Income $ 1,395,884
--------------

EXPENSES
Investment advisory fees $ 123,042
Distribution fees (12b-1) 61,521
Custodian fees 3,999
Transfer agent fees 34,861
Accounting service fees 36,328
Audit and legal fees 5,650
Printing and postage 15,859
Trustees fees 2,835
License, fees, and registrations 5,912
Insurance 1,551
Amortization of organization costs 5,512
--------------
Total Expenses $ 297,070
Less expenses waived or absorbed
by the Fund's manager 124,394
--------------
Total Net Expenses $ 172,676
--------------
NET INVESTMENT INCOME $ 1,223,208
--------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ (218,668)
Futures transactions (367,682)
Net change in unrealized appreciation (depreciation) of
investments 1,151,347
--------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures $ 564,997
--------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,788,205
==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>

Financial Statements July 31, 1997

Statement of Changes in Net Assets
For the year ended July 31, 1997 and year ended July 31, 1996
- --------------------------------------------------------------
<TABLE>
<CAPTION>
For The Year For The Year
Ended Ended
July 31, 1997 July 31, 1996
-------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 1,223,208 $ 864,605
Net realized gain (loss) on investment and futures transactions (586,350) (15,386)
Net unrealized appreciation (depreciation) on investments 1,151,347 23,173
------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 1,788,205 $ 872,392
------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income $ (1,223,208) $ (864,605)
Distributions from net realized gain on investment
and futures transactions 0 0
------------------------------------
Total Dividends and Distributions $ (1,223,208) $ (864,605)
------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 13,035,407 $ 4,757,147
Proceeds from reinvested dividends 787,747 543,019
Cost of shares redeemed (4,663,555) (1,675,710)
------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 9,159,599 $ 3,624,456
------------------------------------
TOTAL INCREASE IN NET ASSETS $ 9,724,596 $ 3,632,243

NET ASSETS, BEGINNING OF PERIOD 18,076,958 14,444,715
------------------------------------
NET ASSETS, END OF PERIOD $ 27,801,554 $ 18,076,958
====================================
</TABLE>
The accompanying notes are an integral part of these financial statements.

<PAGE>
Notes to Financial Statements July 31, 1997

Note 1. ORGANIZATION

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 four 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.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal and Nebraska income
taxes as is consistent with preservation of capital. The Fund will seek to
achieve this objective by investing primarily in a portfolio of Nebraska
municipal securities. Shares of the Fund are offered at net asset value
plus a maximum sales charge of 4.25% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

Federal and state income taxes - The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies, and to distribute all of its net investment income
and any net realized gain on investments, to its shareholders. Therefore, no
provision for income taxes is required. The Fund has available at July 31,
1997, a net capital loss carryforward totaling $1,128,524, which may be used
to offset capital gains realized during subsequent years through July 31,
2005.

Distributions to shareholders - Dividends from net investment income, declared
daily and payable monthly, are reinvested in additional shares of the Fund at
net asset value or paid in cash. Capital gains, when available, are
distributed at least annually.

<PAGE>
Futures contracts - The Fund may purchase and sell financial futures contracts
to hedge against changes in the values of tax-exempt municipal securities the
Fund owns or expects to purchase.

A futures contract is an agreement between two parties to buy or sell units of
a particular index or a certain amount of U.S. Government or municipal
securities at a set price on a future date. Upon entering into a futures
contract, the Fund is required to deposit with a broker an amount of cash or
securities equal to the minimum "initial margin" requirement of the futures
exchange on which the contract is traded. Subsequent payments ("variation
margin") are made or received by the Fund, dependent on the fluctuations in
the value of the underlying index. Daily fluctuations in value are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
When entering into a closing transaction, the Fund will realize, for book
purposes, a gain or loss equal to the difference between the value of the
futures contracts sold and the futures contracts to buy. Unrealized
appreciation (depreciation) related to open futures contracts is required to
be treated as realized gain (loss) for Federal income tax purposes.

Certain risks may arise upon entering into futures contracts. These risks
may include changes in the value of the futures contracts that may not
directly correlate with changes in the value of the underlying securities.

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.

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 31, 1997, there were unlimited shares of no par authorized;
2,468,032 and 1,644,023 shares were outstanding at July 31, 1997 and July 31,
1996, respectively.

Transactions in capital shares were as follows:

Shares
--------------------------------
For The For The
Year Ended Year Ended
July 31, 1997 July 31, 1996
--------------------------------
Shares sold 1,172,643 428,516
Shares issued on reinvestment of dividends 71,004 48,978
Shares redeemed (419,638) (152,247)
--------------------------------
Net increase 824,009 325,247
================================

Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

Ranson Capital Corporation, the Fund's investment adviser and underwriter, ND
Resources, Inc., the Fund's transfer and accounting services agent, and ND
Capital, Inc., the Fund's agent for the purchase of certain investment
securities, are subsidiaries of ND Holdings, Inc., the Fund's sponsor.

<PAGE>
The Fund has engaged Ranson Capital Corporation to provide investment advisory
and management services to the Fund. The Investment Advisory Agreement
provides for fees to be computed at an annual rate of 0.50% of the Fund's
average daily net assets. The Fund has recognized $105,643 of investment
advisory fees after partial waiver of $17,399 for the year ended July 31,
1997. The Fund has a payable to Ranson Capital Corporation of $7,867 at July
31, 1997 for investment advisory fees. Certain officers and trustees of the
Fund are also officers and directors of the investment adviser.

The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1
under the 1940 Act, whereby the Fund shall pay at the annual rate of 0.25% of
the average daily net assets of the Fund to Ranson Capital Corporation
(Capital), its principal underwriter, for expenses incurred in the
distribution of the Fund's shares. Pursuant to the Plan, Capital is entitled
to reimbursement each month for its actual expenses incurred in the
distribution and promotion of the Fund's shares, including the printing of
prospectuses and reports used for sales purposes, expenses of preparation and
printing of sales literature and other such distribution related expenses,
including any distribution or service fees paid to securities dealers who
have executed a dealer sales agreement with Capital. Capital will be
reimbursed at an annual rate not to exceed 0.25% of the average daily net
assets of the Fund for the prior month. The Fund has recognized $61,521 of
12b-1 fee expenses for the year ended July 31, 1997. The Fund has a payable
to Capital of $5,813 at July 31, 1997 for 12b-1 fees. In addition, the Fund
has engaged ND Capital, Inc. as agent for the purchase of certain investment
securities. For the year ended July 31, 1997, commissions earned by ND
Capital, Inc. totaled $1,050 and are included in the cost basis of the
securities acquired.

ND Resources, Inc., (the transfer agent), provides shareholder services for a
montly fee equal to an annual rate of 0.16% of the Fund's first $10 million of
net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11% of
the Fund's net assets on the next $15 million, 0.10% of the Fund's net assets
on the next $10 million, and 0.09% of the Fund's net assets in excess of $50
million. The Fund incurred $34,861 of transfer agency fees, all of which
was waived, for the year ended July 31, 1997. ND Resources, Inc. also
acts as the Fund's accounting services agent for a monthly fee equal to the
sum of a fixed fee of $2,000, and a variable fee equal to 0.05% of the Fund's
average daily net assets on an annual basis for the Fund's first $50 million
and at a lower rate on the average daily net assets in excess of $50 million.
The Fund has incurred $36,328 of accounting service fees, all of which was
waived, for the year ended July 31, 1997.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $9,836,135 and $9,543,183
respectively, for the year ended July 31, 1997.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1997, the aggregate cost of securities for federal income tax
purposes was $26,448,041, and the net unrealized appreciation of investments
based on the cost was $1,103,726 which is comprised of $1,119,000 aggregate
gross unrealized appreciation and $15,274 aggregate gross unrealized
depreciation.

<PAGE>
Financial Highlights Selected per share data and ratios for the period
indicated
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
For The Period
Since Inception
For the For The For The (Nov. 17, 1993)
Year Ended Year Ended Year Ended Through
July 31, July 31, July 31, July 31,
1997 1996 1995 1994
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.00 $ 10.95 $ 10.82 $ 11.49
--------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income $ .55 $ .57 $ .59 $ .45
Net realized and unrealized gain (loss) on
investment and futures transactions .26 .05 .13 (.67)
--------------------------------------------------------------------
Total From Investment Operations $ .81 $ .62 $ .72 $ (.22)
--------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.55) $ (.57) $ (.59) $ (.45)
Distributions from net capital gains .00 .00 .00 .00
--------------------------------------------------------------------
Total Distributions $ (.55) $ (.57) $ (.59) $ (.45)
--------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.26 $ 11.00 $ 10.95 $ 10.82
====================================================================
Total Return 7.57%(A) 5.73%(A) 7.14%(A) (3.20)%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $27,802 $18,077 $14,445 $8,171
Ratio of net expenses (after expense
assumption) to average net assets 0.71%(C) 0.62%(C) 0.35%(C) 0.19%(B)(C)
Ratio of net investment income to average
net assets 5.03% 5.13% 5.63% 5.51%(B)
Portfolio turnover rate 42.84% 27.20% 140.00% 314.00%
</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) Ratio was annualized.
(C) During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed expenses of $124,394, $129,053, $146,913 and
$70,186, respectively. If the expenses had not been assumed, the
annualized ratios of total expenses to average net assets would have been
1.22%, 1.38%, 1.66%, and 2.25%, respectively.

<PAGE>
INDEPENDENT AUDITOR'S REPORT

To the Shareholders and Board of Trustees of
The Nebraska Municipal Fund

We have audited the accompanying statement of assets and liabilities of The
Nebraska Municipal Fund, (one of the portfolios constituting the Ranson
Managed Portfolios), including the schedule of investments, as of July 31,
1997, the related statement of operations for the period then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the two years in the
period then ended. These financial statements and financial highlights are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audit. The financial highlights for each of the two periods
ended July 31, 1995, were audited by other auditors whose report dated
September 11, 1995, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1997, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of The Nebraska Municipal Fund of the Ranson Managed Portfolios, as of July 31,
1997, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1997
<PAGE>
Dear Shareholders,

We are pleased to submit the annual report for The Oklahoma Municipal Fund.
Included with this report is a list of portfolio holdings, along with the
financial statements for the period ended July 31, 1997.

The Oklahoma Municipal Fund turned in steady performance for the period. Net
asset value per share was $11.49 at the beginning of the period and increased
to $11.86 by July 31, 1997.

Management Discussion and Analysis:

The pessimists look at the same data and put an entirely different spin on
things. They contend that the slowdown was inevitable from the first
quarter's robust 6 percent pace. Beneath the surface, growth resurgence will
rise with the tight labor market and a jobless rate hovering at a 24 year low.
Also supporting their views are climbing wages and an upbeat household sector
as indicated by consumer confidence.

Diversification remains an important strategy for the Fund. Among our
purchases during the year were bonds issued by universities, healthcare
facilities and municipal power utilities.

Moving forward, management intends to maintain the portfolio quality while
diversifying throughout the State. Reasonable double tax-exempt income and
preservation of capital remain as the chief objectives of the Fund.

We would like to thank you for your support and look forward to serving you
in the future.

Sincerely,

Robert E. Walstad Monte L. Avery
President Chief Portfolio Strategist

SHAREHOLDER REPORTS REVISED
<PAGE>
- ---------------------------

Your fund's annual report is your best source for tracking the progress of
your investment. This report includes several changes that have been made in
an effort to provide additional information to you. In addition, the
coverletter includes commentary from your fund's portfolio manager on what
might be expected in the coming months. Specifically, your report now
includes:

Terms & Definitions
- -------------------

Appreciation
Increase in value of an asset.

Average Annual Total Return
A standardized measurement of the return (yield and appreciation) earned
by the fund on an annual basis.

Coupon Rate or Face Rate
The rate of interest annually payable based on the face amount of the
bond; expressed as a percentage.

Depreciation
Decrease in value of an asset.

Market Value
Actual (or estimated) price at which a bond trades in the market place.

Maturity
A measure of the term or life of a bond in years. When a bond "matures",
the issuer repays the principal.

Net Asset Value (NAV)
The value of all your fund's assets, minus any liabilities, divided by
the number of outstanding shares, not including any initial or contingent
deferred sales charge.

Quality Ratings
A designation assigned by independent rating companies to give a relative
indication of a bond's credit worthiness. "AAA", "AA" and "A" indicate
highest quality. Ratings can range from a high of "AAA" to a low of "D".
<PAGE>
Total Return
Measures both the net investment income and any realized and unrealized
appreciation or depreciation of the underlying investments in the fund's
portfolio for the period, assuming the reinvestment of all dividends. It
represents the aggregate percentage or dollar value change over the
period.

PERFORMANCE AND COMPOSITION
- ---------------------------

Portfolio Quality Ratings
(based on Total Long-Term Investments
- -------------------------------------
[pie chart]
AAA 64.1%
AA 8.3%
A 4.7%
BBB 5.9%
NR 17.0%
(non-rated)

Portfolio Market Sectors
(as a % of Market Value)
- ------------------------
[pie chart]
I-Insured 55.1%
HC-Health Care 12.8%
U-Utilities 12.5%
E-Education 8.5%
RE-Real Estate 6.1%
GO-General Obligation 4.5%
H-Housing .5%

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.

COMPARATIVE INDEX GRAPH
- -----------------------
[line graph]
Comparison of change in value of a $10,000 investment in The
Oklahoma Municipal Fund and the Lehman Brothers Municipal
Bond Index

The Oklahoma The Oklahoma Lehman Brothers
Municipal Fund Municipal Fund Municipal
w/o sales charge w/ max sales charge Bond Index
----------------------------------------------------------
09/25/96 $10,000 $ 9,575 $10,000
1997 $10,779 $10,321 $11,027

Putting Performance into Perspective
The graph comparing your Fund's performance to a benchmark index provides you
with a general sense of how your Fund performed. To put this information in
<PAGE>
context, it may be helpful to understand the special differences between the
two. Your Fund's total return for the period shown appears with and without
sales charges and includes Fund expenses and management fees. A securities
index measures the performance of a theoretical portfolio. Unlike a fund, the
index is unmanaged; there are no expenses that affect the results. In
addition, few investors could purchase all of the securities necessary to
match the index. And, if they could, they would incur transaction costs and
other expenses.

KEY STATISTICS
- --------------

09/25/96 NAV(share value) $11.49
07/31/97 NAV $11.86
Average Maturity 20.0 years
Average Duration 9.9 years
Number of Issues 44
Total Net Assets $6,590,675

AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------

For periods ending July 31, 1997
- ---------------------------------------------------
1 year 5 year Since Inception
- ---------------------------------------------------
NA NA NA

No total return data is available for the Fund as it has not yet completed
one full year of operation. See the "Financial Highlights" section of the
annual report. Returns are historical and are not a guarantee of future
results. The Fund's share price, yields and total returns will
vary, so that shares, when redeemed, may be worth more or less than their
original cost.

<PAGE>
<TABLE>
<CAPTION>
Schedule of Investments July 31, 1997
Ratings
(Unaudited)
Name of Issuer ---------------
Percentages represent the market value Std. & Coupon Principal Market
of each investment category to total net assets Moody's Poor's Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OKLAHOMA MUNICIPAL BONDS (93.3%)

GENERAL OBLIGATION
OK State G.O. Unlimited Tax Aa-3 AA 5.200% 07-15-16 $ 25,000 $ 26,083
OK State G.O. Unlimited Tax Aa-3 AA 5.200 07-15-18 55,000 56,753
OK State G.O. Unlimited Tax Aa-3 AA 5.100 07-15-13 90,000 92,445
OK State Indl. Fin. Auth. G.O. Aa-3 NR 5.300 09-01-11 50,000 51,946
OK State Indl. Fin. Auth. G.O. Aa-3 NR 5.400 09-01-12 50,000 51,755
----------
$ 278,982
----------
HEALTH CARE
Oklahoma City, OK Fin. Auth. (Epworth Villa) Rev.
Ref. NR NR 6.500% 04-01-15 $ 200,000 $ 204,770
Oklahoma City, OK Fin. Auth. (Epworth Villa) Rev.
Ref. NR NR 7.000 04-01-22 200,000 207,028
Oklahoma Co., OK Indl. Auth. (Benevolent Assn.)
Ref. Baa-1 NR 6.150 01-01-11 100,000 103,122
OK Dev. Fin. Auth. (St. Francis Hosp.) Rev. NR AA 5.200 12-15-12 15,000 15,194
Shawnee, OK Hosp. Auth. (Midamerica Healthcare) Rev. NR BBB 6.125 10-01-14 250,000 258,775
----------
$ 788,889
----------
HOUSING
OK Housing Finance Agcy. (Homeownership) Single
Family Rev. Aaa NR 6.100% 09-01-16 $ 25,000 $ 25,193
----------
INSURED/GUARANTEED
Grand River Dam Auth., OK Rev. AMBAC Insured Aaa AAA 5.500% 06-01-09 $ 75,000 $ 79,868
*Grand River Dam Auth., OK Rev. AMBAC Insured Aaa AAA 6.250 06-01-11 210,000 236,825
Norman, OK (Regional Hospital) Ref. MBIA Insured Aaa AAA 5.625 09-01-21 300,000 305,733
Oklahoma City, OK Public Housing U.S. GOVT. GTD. Aaa AAA 5.250 11-01-11 20,000 20,773
OK Board of Regents (Northeastern St. Univ.
Center) FSA Insured Aaa AAA 5.100 03-01-16 140,000 143,741
OK Dev. Finance Auth. Pub. (Fing University)
Rev. FSA Insured Aaa AAA 5.625 07-01-13 50,000 53,734
OK Dev. Finance Auth. (Oklahoma City Univ.)
Rev. Ref. Aaa AAA 5.125 06-01-17 545,000 539,937
OK State Municipal Power Auth. Rev. MBIA Insured Aaa AAA 6.250 01-01-23 10,000 11,150
*OK State Municipal Power Auth. Rev. MBIA Insured Aaa AAA 5.875 01-01-15 775,000 858,847
Puerto Rico Commonwealth G.O. Unlimited Tax MBIA
Insured Aaa AAA 5.375 07-01-21 300,000 306,825
Puerto Rico Commonwealth Highway & Trans. Auth.
Rev. FSA Ins. Aaa AAA 5.250 07-01-20 150,000 150,346
Puerto Rico Commonwealth Highway & Trans. Auth.
Rev. MBIA Ins. Aaa AAA 5.250 07-01-21 25,000 25,008
Puerto Rico Commonwealth Highway & Trans. Auth.
Rev. MBIA Ins. Aaa AAA 5.000 07-01-22 100,000 97,387
Puerto Rico Industrial Tourist & Envir. Facs.
(Auxilio Mutuo) MBIA Insured Aaa AAA 5.500 07-01-26 200,000 204,646
Tulsa, OK Community College (Student Ctr.) Rev.
MBIA Insured Aaa AAA 5.500 07-01-16 50,000 52,932
University of Puerto Rico Rev. Aaa AAA 5.250 06-01-25 300,000 302,082
----------
$3,389,834
----------
REAL ESTATE
OK Dev. Finance Auth. (Bake Rite Proj.) Rev. NR NR 8.500% 08-01-14 $ 250,000 $ 268,780
OK Capital Improvement Auth. Rev. A-2 NR 5.500 10-01-16 105,000 108,655
----------
$ 377,435
----------
SCHOOL
Eastern OK Board of Regents (State College)
Student Facs. Rev. NR NR 5.500% 06-01-07 $ 35,000 $ 35,671
Eastern OK Board of Regents (State College)
Student Facs. Rev. NR NR 5.600 06-01-08 65,000 66,414
Eastern OK Board of Regents (State College) Student
Facs. Rev. NR NR 6.100 06-01-17 150,000 155,787
OK Dev. Finance Auth. (Southern Nazarene Univ.)
Rev. NR NR 6.500 11-01-13 75,000 82,584
OK State Student Loan Auth. A-1 NR 6.350 09-01-25 100,000 104,300
OK State Student Loan Rev. Ref. A-1 A 5.100 08-01-08 25,000 25,764
OK State (University) Ag & Applied Science Rev. A-1 A+ 5.250 04-01-07 50,000 50,450
----------
$ 520,970
----------
UTILITIES
Clinton, OK Public Works Auth. Ref. & Impt. NR NR 6.250% 01-01-14 $ 25,000 $ 25,980
Grand River Dam Auth., OK Rev. Ref. A-1 A- 5.500 06-01-10 30,000 31,517
OK State Municipal Power Auth. Rev. Aaa AAA 5.875 01-01-12 100,000 109,482
OK State Water (Loan Program) Rev. Aaa AAA 6.400 09-01-11 100,000 113,266
OK State Water (Loan Program) Rev. NR AA 6.250 10-01-12 50,000 54,972
OK State Water (Loan Program) Rev. NR AA 5.375 09-01-19 20,000 21,125
OK State Water (Loan Program) Rev. NR AA 5.400 09-01-15 105,000 110,698
Puerto Rico Electric Power Auth. Rev. Aaa AAA 5.375 07-01-27 300,000 305,163
----------
$ 772,203
----------

TOTAL OKLAHOMA MUNICIPAL BONDS (COST: $6,013,415) $6,153,506
----------
SHORT TERM SECURITIES (0.1%)
Federated Tax-Free Trust (COST: $749) $ 749
----------
TOTAL INVESTMENTS IN SECURITIES (COST: $6,014,164) $6,154,255
OTHER ASSETS LESS LIABILITIES (6.6%) 436,420
----------
NET ASSETS $6,590,675
==========
</TABLE>
*Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.
The accompanying notes are an integral part of these financial statements.

<PAGE>
Financial Statements July 31, 1997

Statement of Assets and Liabilities July 31, 1997
- -------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in securities, at value (Cost: $6,014,164) $ 6,154,255
Cash 14,130
Accrued interest receivable 78,175
Accrued dividends receivable 615
Receivable for fund shares sold 50,000
Security sales receivable 399,158
Deferred organization costs 25,813
--------------
Total Assets $ 6,722,146
--------------
Liabilities
Dividends payable $ 25,679
Security purchases payable 103,367
Other payables 2,425
--------------
Total Liabilities $ 131,471
--------------

Net Assets $ 6,590,675
==============

Net asset value per share, 555,618 shares outstanding $ 11.86
==============

Statement of Operations for the period since inception (September 25, 1996)
through July 31, 1997

INVESTMENT INCOME
Interest $ 64,685
Dividends 4,923
--------------
Total Investment Income $ 69,608
--------------
EXPENSES
Investment advisory fees $ 6,767
Distribution fees (12b-1) 3,383
Custodian fees 175
Transfer agent fees 2,678
Accounting service fees 20,691
Printing and postage 2,652
Audit and legal fees 315
Insurance 26
--------------
Total Expenses $ 36,687
Less expenses waived or absorbed
by the Fund's manager 34,609
--------------
Total Net Expenses $ 2,078
--------------
NET INVESTMENT INCOME $ 67,530
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on
investment transactions $ 19,246
Net change in unrealized appreciation (depreciation) of
investments 140,091
--------------
Net Realized And Unrealized Gain (Loss) On Investments $ 159,337
--------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 226,867
==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>

Financial Statements July 31, 1997

Statement of Changes in Net Assets
For the period since inception (September 25, 1996) through July 31, 1997
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
For The Period
Since Inception
(September 25,
1996 ) Through
July 31, 1997
---------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C>
Net investment income $ 67,530
Net realized gain (loss) on investment transactions 19,246
Net unrealized appreciation (depreciation) on investments 140,091
---------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 226,867
---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income $ (67,530)
Distributions from net realized gain on investment transactions 0
---------------
Total Dividends and Distributions $ (67,530)
---------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 6,448,490
Proceeds from reinvested dividends 23,486
Cost of shares redeemed (40,638)
---------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 6,431,338
---------------
TOTAL INCREASE IN NET ASSETS $ 6,590,675
---------------
NET ASSETS, BEGINNING OF PERIOD $ 0
---------------
NET ASSETS, END OF PERIOD $ 6,590,675
===============
</TABLE>
The accompanying notes are an integral part of these financial statements.

<PAGE>
Notes to Financial Statements July 31, 1997

Note 1. ORGANIZATION

Business Operations - The Oklahoma 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 four 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 September
25, 1996, other than matters relating to organization and registration. On
September 25, 1996, the Fund commenced its Public Offering of capital shares.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal income tax and, to a
certain extent, Oklahoma income tax, as is consistent with preservation of
capital. Up to 30% of the Fund's total assets may be invested in Oklahoma
municipal securities which are subject to Oklahoma state income taxes. The
Fund will seek to achieve this objective by investing primarily in a portfolio
of Oklahoma municipal securities. Shares of the Fund are offered at net
asset value plus a maximum sales charge of 4.25% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 will be amortized over a 60-month period on the straight-line
basis. Accumulated amortization at July 31, 1997 totaled $738.

Distributions to shareholders - Dividends from net investment income, declared
daily and payable monthly, are reinvested in additional shares of the Fund at
net asset value or paid in cash. Capital gains, when available, are
distributed at least annually.

Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
<PAGE>
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.

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 31, 1997, there were unlimited shares of no par authorized; 555,618
shares were outstanding.
Transactions in capital shares were as follows:

Shares
--------------------------
For the Period Since
Inception (Sept. 25, 1996)
Through July 31, 1997
---------------------------
Shares sold 557,078
Shares issued on reinvestment of dividends 2,039
Shares redeemed (3,499)
---------------------------
Net increase 555,618
===========================

Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

The Fund has engaged Ranson Capital Corporation to provide investment advisory
and management services to the Fund. The Investment Advisory Agreement
provides for fees to be computed at an annual rate of 0.50% of the Fund's
average daily net assets. The Fund has recognized $1,341 of investment
advisory fees for the period ended July 31, 1997. The Fund has a payable to
Ranson Capital Corporation of $552 at July 31, 1997 for investment advisory
fees. Certain officers and trustees of the Fund are also officers and
directors of the investment adviser.

The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1
under the 1940 Act, whereby the Fund shall pay at the annual rate of 0.25%
of the average daily net assets of the Fund to Ranson Capital Corporation
(Capital), its principal underwriter, for expenses incurred in the
distribution of the Fund's shares. Pursuant to the Plan, Capital is entitled
to reimbursement each month for its actual expenses incurred in the
distribution and promotion of the Fund's shares, including the printing of
prospectuses and reports used for sales purposes, expenses of preparation and
printing of sales literature and other such distribution related expenses,
including any distribution or service fees paid to securities dealers who have
executed a dealer sales agreement with Capital. Capital will be reimbursed at
an annual rate not to exceed 0.25% of the average daily net assets of the Fund
for the prior month. Capital has elected to waive all 12b-1 fees for the
period ended July 31, 1997. In addition, the Fund has engaged ND Capital,
Inc. as agent for the purchase of certain investment securities. For the
period ended July 31, 1997 commissions earned by ND Capital, Inc. totaled
$3,063 and are included in the cost basis of the securities acquired.

<PAGE>
ND Resources, Inc., (the transfer agent), provides shareholder services for a
monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million
of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11%
of the Fund's net assets on the next $15 million, 0.10% of the Fund's net
assets on the next $10 million, and 0.09% of the Fund's net assets in excess
of $50 million. ND Resources, Inc. also acts as the Fund's accounting
services agent for a monthly fee equal to the sum of a fixed fee of $2,000,
and a variable fee equal to 0.05% of the Fund's average daily net assets
on an annual basis for the Fund's first $50 million and at a lower rate on
the average daily net assets in excess of $50 million. ND Holdings, Inc.
has assumed all transfer agent and accounting service fees for the period
ended July 31, 1997.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $7,024,083 and $1,016,260
respectively, for the period ended July 31, 1997.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1997, the aggregate cost of securities for federal income tax
purposes was $6,014,164, and the net unrealized appreciation of investments
based on the cost was $140,091 which is comprised of $141,178 aggregate gross
unrealized appreciation and $1,087 aggregate gross unrealized depreciation.
<PAGE>

Financial Highlights Selected per share data and ratios for the period
indicated
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>

For The Period
Since Inception
(Sept. 25,
1996)Through
July 31, 1997
---------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.49
---------------
Income from Investment Operations:
Net Investment Income $ .50
Net realized and unrealized gain (loss) on investments .37
---------------
Total From Investment Operations $ .87
---------------
Less Distributions:
Dividends from net investment income $ (.50)
Distributions from net capital gains .00
---------------
Total Distributions $ (.50)
---------------
NET ASSET VALUE, END OF PERIOD $ 11.86
===============
Total Return 7.79%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 6,590
Ratio of net expenses (after expense assumption) to
average net assets 0.11%(C)
Ratio of net investment income to average net assets 3.70%
Portfolio turnover rate 63.70%
</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) Ratio was annualized.
(C) During the period ended July 31, 1997, ND Holdings, Inc. assumed
expenses of $34,609. If the expenses had not been assumed, the
annualized ratio of total expenses to average net assets would have been
2.01%.

<PAGE>
INDEPENDENT AUDITOR'S REPORT

To the Shareholders and Board of Trustees of
The Oklahoma Municipal Fund

We have audited the accompanying statement of assets and liabilities of The
Oklahoma Municipal Fund, (one of the portfolio's constituting the Ranson
Managed Portfolios), including the schedule of investments, as of July 31,
1997, the related statement of operations, the statement of changes in net
assets, and the financial highlights for the period from inception (September
25, 996) through July 31, 1997. These financial statements and financial
highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 1997, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Oklahoma Municipal Fund of the Ranson Managed Portfolios, as of July 31, 1997,
the results of its operations, the changes in its net assets, and the
financial highlights for the period from inception (September 25, 1996)
through July 31, 1997, in conformity with generally accepted accounting
principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1997

<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> THE KANSAS MUNICIPAL FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 120885661
<INVESTMENTS-AT-VALUE> 127819321
<RECEIVABLES> 2436380
<ASSETS-OTHER> 145454
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 130401155
<PAYABLE-FOR-SECURITIES> 1496490
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 703211
<TOTAL-LIABILITIES> 2199701
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 10321705
<SHARES-COMMON-PRIOR> 10905053
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4280562)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6933660
<NET-ASSETS> 128201454
<DIVIDEND-INCOME> 74144
<INTEREST-INCOME> 7654418
<OTHER-INCOME> 0
<EXPENSES-NET> (1207021)
<NET-INVESTMENT-INCOME> 6521541
<REALIZED-GAINS-CURRENT> (2222212)
<APPREC-INCREASE-CURRENT> 5213589
<NET-CHANGE-FROM-OPS> 9512918
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6521541)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 563448
<NUMBER-OF-SHARES-REDEEMED> 1514291
<SHARES-REINVESTED> 367495
<NET-CHANGE-IN-ASSETS> (4147497)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 650009
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1253762
<AVERAGE-NET-ASSETS> 129850018
<PER-SHARE-NAV-BEGIN> 12.14
<PER-SHARE-NII> .61
<PER-SHARE-GAIN-APPREC> .28
<PER-SHARE-DIVIDEND> (.61)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 12.42
<EXPENSE-RATIO> .93<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expenses to average net assets.
</FN>

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> THE KANSAS INSURED INTERMEDIATE FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 25535252
<INVESTMENTS-AT-VALUE> 26492171
<RECEIVABLES> 470210
<ASSETS-OTHER> 28972
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 26991353
<PAYABLE-FOR-SECURITIES> 1343902
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 114033
<TOTAL-LIABILITIES> 1457935
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2086938
<SHARES-COMMON-PRIOR> 2507133
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (717376)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 956919
<NET-ASSETS> 25533418
<DIVIDEND-INCOME> 18227
<INTEREST-INCOME> 1387755
<OTHER-INCOME> 0
<EXPENSES-NET> (209195)
<NET-INVESTMENT-INCOME> 1196787
<REALIZED-GAINS-CURRENT> (411602)
<APPREC-INCREASE-CURRENT> 525690
<NET-CHANGE-FROM-OPS> 1310875
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1196787)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 110692
<NUMBER-OF-SHARES-REDEEMED> 589765
<SHARES-REINVESTED> 58878
<NET-CHANGE-IN-ASSETS> (5030505)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 138457
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 249803
<AVERAGE-NET-ASSETS> 27657523
<PER-SHARE-NAV-BEGIN> 12.19
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .04
<PER-SHARE-DIVIDEND> (.53)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 12.23
<EXPENSE-RATIO> .76<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expenses to average net assests.
</FN>

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> THE NEBRASKA MUNICIPAL FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 26448041
<INVESTMENTS-AT-VALUE> 27551767
<RECEIVABLES> 773995
<ASSETS-OTHER> 7349
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 28351774
<PAYABLE-FOR-SECURITIES> 345566
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 204654
<TOTAL-LIABILITIES> 550220
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 2468032
<SHARES-COMMON-PRIOR> 1644023
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1128524)<F1>
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1103726
<NET-ASSETS> 27801554
<DIVIDEND-INCOME> 22008
<INTEREST-INCOME> 1373876
<OTHER-INCOME> 0
<EXPENSES-NET> (172676)
<NET-INVESTMENT-INCOME> 1223208
<REALIZED-GAINS-CURRENT> (586350)
<APPREC-INCREASE-CURRENT> 1151347
<NET-CHANGE-FROM-OPS> 1788205
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1223208)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1172613<F2>
<NUMBER-OF-SHARES-REDEEMED> 419638
<SHARES-REINVESTED> 71004
<NET-CHANGE-IN-ASSETS> 9724596
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 123042
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 297070
<AVERAGE-NET-ASSETS> 24298411
<PER-SHARE-NAV-BEGIN> 11.00
<PER-SHARE-NII> .55
<PER-SHARE-GAIN-APPREC> .26
<PER-SHARE-DIVIDEND> (.55)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 11.26
<EXPENSE-RATIO> .71<F3>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Includes $322,399 of accumulated realized losses inherited from the Heartland
Nebraska Tax Free Fund pursuant to the agreement and plan of reorganization.
<F2>Includes 926,218 shares issued to the shareholders of the Heartland Nebraska
Tax Free Fund pursuant to the plan of reorganization in exchange for net assets
fo $10,299,543.
<F3>Ratio of net expenses to average net assets.
</FN>

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> THE OKLAHOMA MUNICIPAL FUND

<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 6014164
<INVESTMENTS-AT-VALUE> 6154255
<RECEIVABLES> 527948
<ASSETS-OTHER> 25813
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6722146
<PAYABLE-FOR-SECURITIES> 103367
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 28104
<TOTAL-LIABILITIES> 131471
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 555618
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 140091
<NET-ASSETS> 6590675
<DIVIDEND-INCOME> 4923
<INTEREST-INCOME> 64685
<OTHER-INCOME> 0
<EXPENSES-NET> (2078)
<NET-INVESTMENT-INCOME> 67530
<REALIZED-GAINS-CURRENT> 19246
<APPREC-INCREASE-CURRENT> 140091
<NET-CHANGE-FROM-OPS> 226867
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (67530)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 557078
<NUMBER-OF-SHARES-REDEEMED> 3499
<SHARES-REINVESTED> 2039
<NET-CHANGE-IN-ASSETS> 6590675
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1341
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 36687
<AVERAGE-NET-ASSETS> 1825592
<PER-SHARE-NAV-BEGIN> 11.49
<PER-SHARE-NII> .50
<PER-SHARE-GAIN-APPREC> .37
<PER-SHARE-DIVIDEND> (.50)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 11.86
<EXPENSE-RATIO> .11<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expenses to average net assets.
</FN>

</TABLE>