RANSON MANAGED PORTFOLIOS, N-30D, 1998-09-16

RANSON MANAGED PORTFOLIOS
N-30D, 1998-09-16

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Dear Shareholder:

We are pleased to enclose the annual report of the operations of The Kansas
Municipal Fund for the year ended July 31, 1998. The Fund's portfolio and
related financial statements are presented within for your review.

As we end the first half of 1998, the 30-year Treasury bond descended to a
record low yield of 5.59% spurred by the strength of the U.S. dollar and
weakness in commodity prices. Asian turmoil has helped put the brakes on
runaway growth in the U.S. economy, in the process restraining the Federal
Reserve from tightening credit. At the same time, a worldwide flight to quality
and a muscle-bound dollar have led investors directly into the U.S. Treasury
market.

The strength of the dollar is helping bonds both directly and indirectly.
Dollar-denominated securities are more attractive and at the same time widening
the trade deficit. Cheap foreign goods have helped keep inflation in check.

On the other hand, it is easy to imagine a sudden jolt of bad news. Unexpected
increases in companies labor costs or fighting in the Middle East would send
inflation higher. The latest Consumer Price Index figures increased at a 2.7%
annual rate over the last six months, up from a 1.9% rate in the prior six
months.

The Kansas Municipal Fund, began the year at $12.42 and then closed the year at
$12.15. The Kansas Municipal Fund has utilized partial hedges during the year
to protect against the possibility of strong economic growth. By using a
partial hedge to protect against the possibility of interest rate fluctuations,
share prices were tempered as rates declined during the fiscal year ended July
31, 1998.

High quality double-exempt issues continues to be the primary focus of the
Fund's portfolio. Recent purchases in the primary and secondary markets have
been issues for Children's Mercy Hospital, Topeka Utility Water Revenue bonds
and Riley County's Colbert Hills Project.

The average interest rate coupon is currently 6.35% with nearly 45% of the
Fund's holdings rated AAA insured by Moody's Investor Service and/or Standard &
Poors Corporation.

The investment objective of the Fund is to provide a high level of current
income exempt from both federal income tax and, to the extent indicated in the
prospectus, Kansas income tax as is consistent with preservation of capital.

Sincerely,

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

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, assuming all distributions are reinvested.

Consumer Price Index
A commonly used measure of inflation: it does not represent an investment
return.

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.

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 sales charge.

Quality Ratings
A designation assigned by independent rating companies to give a relative
indication of a bond's credit worthiness. "AAA", "AA", "A" and "BBB" indicate
investment grade securities. 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 Ratings
(based on Total Long-Term Investments)
- --------------------------------------
[pie chart]
AAA 44.1
AA 10.0
A 23.8
NR 14.8
BBB 7.3

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 Corporation, the investment advisor.

Portfolio Market Sectors
(as a % of Net Assets)
- ------------------------
[pie chart]
H-Housing 35.7
HC-Health Care 25.4
U-Utilities 15.4
GO-General Obligation 7.9
S-School 3.9
O-Other 3.8
W/S-Water/Sewer 3.1
I-Industrial 2.4
T-Transportation 2.4

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 Brothers Municipal Bond Index

Kansas Municipal Fund Kansas Municipal Fund Lehman Brother's
w/o sales charge w/ max sales charge Muni Bond Index
--------------------------------------------------------------------
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
1998 $16,372 $15,676 $18,177

Average Annual Total Returns
- ----------------------------

For periods ending July 31, 1998
Since Inception
1 year 5 year (November 15, 1990)
- -------------------------------------------------------------------------------
Without sales charge 2.76% 4.64% 6.60%
With sales charge (1.61)% 3.73% 6.00%
- -------------------------------------------------------------------------------

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. The Lehman Brothers index is a national index representative of the
national municipal bond market whereas the Fund concentrates its investments in
Kansas municipal bonds. 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. All Fund and benchmark returns include reinvested dividends.
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.

Key Statistics
- --------------

07/31/97 NAV(share value) $12.42
07/31/98 NAV $12.15
Average Maturity 21.0 years
Number of Issues 80
Total Net Assets $120,023,735

Schedule of Investments July 31, 1998

Name of Issuer
Percentages represent the market value of each investment
category to total net assets
Rating
(Unaudited) Coupon Principal Market
Moody's/S&P Rate Maturity Amount Value
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (97.8%)

Blue Valley, KS Recreation Commission C.O.P.'s NR/NR 6.600% 04/01/07 $ 245,000 $ 262,956
*Burlington, KS (Gas & Elec.) Rev. Ref. MBIA Aaa/AAA 7.000 06/01/31 4,000,000 4,388,280
Cowley Cty., KS Community College C.O.P.'s A/NR 7.000 03/01/12 900,000 942,894
Douglas Cty., KS USD #497 (Lawrence) G.O. Aa/NR 6.000 09/01/15 1,000,000 1,079,920
Ford Cty., KS Single Family Mrtge. Rev. Ref. A-1/NR 7.900 08/01/10 450,000 481,000
Gardner, KS Elec. Util. Rev. NR/NR 7.000 11/01/09 1,000,000 1,085,960
Goddard, KS (IFR Syst., Inc.) Indl. Rev. Ref. & Impvt. NR/NR 6.250 05/01/12 500,000 518,830
Gray Cty., KS USD #102 (Cimmarron) G.O. NR/NR 6.800 09/01/15 500,000 551,400
Hiawatha, KS (WalMart Stores) Indl. Rev. Ref. NR/AA 6.750 01/01/06 540,000 566,476
Hutchinson, KS Single Family Mrtge. Rev. Ref. A-1/NR 8.875 12/01/12 2,125,000 2,285,246
Johnson Cty., KS Internal Impvt. & Ref. Aa-1/NR 6.125 09/01/12 2,410,000 2,614,344
Johnson Cty., KS Park & Recreation Rev. Ref. NR/NR 7.200 01/01/09 500,000 520,485
Johnson Cty., KS Single Family Mrtge. Rev. A-1/NR 7.100 05/01/12 925,000 993,357
Johnson Cty., KS Water Dist. #1 Rev. Aa/AA+ 6.250 12/01/11 700,000 749,315
Johnson Cty., KS Water Dist. #1 Rev. Ref. Aa/AA+ 6.500 12/01/13 500,000 534,355
Kansas City, KS GNMA Mrtge. Rev. Aaa/NR 5.900 11/01/27 1,665,000 1,691,956
*Kansas City, KS Util. Syst. Ref. & Impvt. FGIC Aaa/AAA 6.375 09/01/23 7,750,000 8,714,177
*Kansas City, KS Util. Syst. Ref. & Impvt. AMBAC Aaa/AAA 6.300 09/01/16 2,000,000 2,161,060
Kansas City\Leavenworth Cty.\Lenexa, KS Mrtge. Rev. GNMA NR/AAA 7.850 11/01/10 525,000 560,653
KS Department of Transportation Highway Rev. Aa/AA 6.000 09/01/12 2,200,000 2,404,248
KS Devl. Fin. Auth. Multifamily Rev. Hsg. Indian Ridge Apts. NR/NR 6.000 01/01/28 1,150,000 1,158,636
KS Devl. Finance Auth. (Board of Regents) AMBAC Aaa/AAA 5.875 06/01/21 750,000 800,827
KS Devl. Finance Auth. (Board of Regents) Rev. NR/NR 6.000 04/01/08 500,000 530,045
KS Devl. Finance Auth. (El Dorado/Larned) Rev. Ref. MBIA Aaa/AAA 6.000 02/01/12 2,000,000 2,127,760
KS Devl. Finance Auth. (Highway Patrol Training Facs.) Rev. NR/NR 6.300 12/01/05 450,000 475,654
KS Devl. Finance Auth. (Martin Creek Place) Rev. FHA Aa/NR 6.500 08/01/24 750,000 762,623
# KS Devl. Finance Auth. (Martin Creek Place) Rev. FHA Aa/NR 6.600 08/01/34 1,900,000 1,945,068
KS Devl. Finance Auth. (Sec. 8) Rev. Ref. MBIA Aaa/AAA 6.400 01/01/24 770,000 809,663
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. MBIA Aaa/AAA 5.800 11/15/21 430,000 459,868
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. MBIA Aaa/AAA 5.800 11/15/16 550,000 583,786
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. MBIA Aaa/AAA 5.800 11/15/21 680,000 717,822
KS Devl. Finance Auth. Children's Mercy Hospital Rev. NR/A+ 5.250 05/15/28 1,000,000 986,830
KS Devl. Finance Auth. Multifamily Hsg. Rev. NR/AAA 6.000 12/01/21 1,975,000 2,095,199
KS Devl. Finance Auth. Multifamily Hsg. Rev. NR/NR 6.500 02/01/18 2,065,000 2,169,324
KS Devl. Finance Auth. Multifamily Hsg. Rev. NR/NR 6.625 08/01/29 1,875,000 2,008,575
KS Devl. Finance Auth. Water Fund Rev. Aa-1/AA- 6.000 11/01/14 500,000 537,825
KS Water Finance Auth. (Public Water Supply Dist #6) Rev. NR/NR 6.000 05/01/17 255,000 265,547
Lawrence, KS (Brandon Woods) Multifamily Hsg. Devl. Rev. Ref. NR/AAA 6.625 04/01/12 2,000,000 2,071,100
Lawrence, KS (Memorial Hospital) Rev. A-3/NR 6.000 07/01/09 2,000,000 2,148,020
Lawrence, KS (Memorial Hospital) Rev. A-3/NR 6.200 07/01/14 1,200,000 1,294,596
Lawrence, KS (Memorial Hospital) Rev. A-3/NR 6.200 07/01/19 1,725,000 1,854,944
Leavenworth Cty., KS (Lansing) USD #469 G.O. CGIC Aaa/AAA 5.750 09/01/15 930,000 987,065
Leavenworth Cty., KS (Lansing) USD #469 G.O. AMBAC Aaa/AAA 5.750 09/01/14 875,000 928,148
Lenexa KS (Lakeview Village) Hlth. Care Facs. Rev. NR/BBB- 6.250 05/15/26 8,000,000 8,583,840
*Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. ASGUA Aaa/AAA 6.450 02/01/18 2,500,000 2,568,700
Merriam, KS (Shawnee Mission Medl. Ctr.) Rev. Ref. NR/A- 7.250 09/01/21 1,000,000 1,105,720
Olathe, KS (Bristol Pointe) Multifamily Hsg. Rev. Ref. FNMA NR/AAA 5.700 11/01/27 2,210,000 2,240,189
Olathe, KS (Jefferson Place) Multifamily Hsg. Rev. Ref. NR/A- 5.950 07/01/22 5,060,000 5,252,229
Olathe, KS (Jefferson Place) Multifamily Hsg. Rev. Ref. NR/A- 6.100 07/01/22 785,000 830,153
Olathe, KS Hlth. Care Ref. AMBAC Aaa/AAA 6.000 09/01/11 1,000,000 1,022,000
Olathe, KS Hlth. Care Ref. AMBAC Aaa/AAA 5.875 09/01/16 2,000,000 2,126,960
Olathe, KS Hlth. Care Ref. AMBAC Aaa/AAA 6.000 05/01/19 900,000 945,666
Pratt, KS Elec. Util. Syst. Rev. Ref. & Impvt. AMBAC Aaa/AAA 6.600 11/01/07 1,000,000 1,135,680
Riley Cty. KS Colbert Hills Golf Project NR/NR 5.550 05/01/23 2,590,000 2,580,676
Salina, KS Combined Water & Sewage Syst. Impvt. Rev. MBIA Aaa/AAA 6.250 10/01/12 500,000 523,320
Scott City, KS Water Syst. Ref. G.O. NR/NR 6.100 09/01/14 625,000 669,581
Seward Cty., KS (Liberal, KS) USD #480 FSA Aaa/NR 5.000 09/01/18 750,000 741,323
Seward Cty., KS G.O. AMBAC Aaa/AAA 6.000 08/15/13 750,000 795,450
Seward Cty., KS Single Family Mrtge. Rev. NR/AA- 7.375 12/01/09 480,000 497,011
Seward Cty., KS Single Family Mrtge. Rev. Ref. A-1/NR 8.000 05/01/11 360,000 383,774
Shawnee Cty., KS (Auburn-Washburn) USD #437 G.O. Ref. FGIC Aaa/AAA 6.600 09/01/09 500,000 541,970
Shawnee, KS Int. Impvt. G.O. A-1/NR 5.850 12/01/06 235,000 254,517
Topeka, KS Water & Water Pollution Control Util. Rev. FGIC Aaa/NR 5.100 08/01/23 1,000,000 986,160
Wichita KS Multifamily Hsg. Rev. Innes Station Apt. 5 NR/NR 6.250 03/01/28 1,750,000 1,748,460
Wichita, KS (CSJ Hlth. Sys.) Rev. NR/A- 7.000 11/15/08 640,000 693,587
Wichita, KS (CSJ Hlth. Sys.) Rev. NR/A- 7.200 10/01/15 2,225,000 2,433,127
Wichita, KS (CSJ Hlth. Sys.) Rev. NR/A- 7.000 11/15/18 2,350,000 2,597,549
Wichita, KS (St. Francis) Facs. Impvt. & Ref. MBIA Aaa/AAA 6.250 10/01/10 1,000,000 1,094,820
Wichita, KS Airport Auth. Facs. Rev. Ref. ASGUA Aaa/AAA 7.000 03/01/05 440,000 467,562
Wichita, KS Hlth. Care (Masonic Home) Rev. NR/NR 6.375 12/01/22 1,775,000 1,777,450
Wichita, KS Multifamily Hsg. (Cimarron Apartments) FNMA NR/AAA 5.550 10/01/22 1,000,000 1,014,420
Wichita, KS Multifamily Hsg. Rev. NR/A 5.850 12/01/25 1,000,000 1,009,760
Wichita, KS Multifamily Hsg. Rev. FNMA NR/AAA 5.650 07/01/16 990,000 1,010,592
# Wichita, KS Multifamily Hsg. Rev. FNMA NR/AAA 5.700 07/01/22 2,000,000 2,037,260
Wichita, KS Multifamily Hsg. Rev. Ref. GNMA Aaa/NR 6.125 08/20/28 1,900,000 1,943,510
Wichita, KS Public Blding. Commission Real Estate Rev. A/A+ 5.500 08/01/14 1,215,000 1,261,620
Wichita, KS Public Blding. Commission Rev. AMBAC Aaa/AAA 5.750 02/01/17 350,000 367,997
Wichita, KS Single Family Mrtge. Rev. Ref. A-1/NR 7.100 09/01/09 1,045,000 1,101,231
Wichita, KS Water & Sewer Util. Ref. & Impvt. FGIC Aaa/AAA 6.000 10/01/12 1,000,000 1,085,560
Wyandotte Cty., KS USD #203 (Piper) Ref. & Impvt. G.O. NR/NR 6.600 09/01/13 1,000,000 1,070,390
-----------
KANSAS MUNICIPAL BONDS (COST: $111,472,046) $ 117,325,651
-----------
SHORT-TERM SECURITIES (.9%)
Federated Tax-Free Fund 73 $ 356,542
Federated Intermediate Municipal Trust 78 700,000
------------
TOTAL SHORT-TERM SECURITIES (COST: $1,056,542) $ 1,056,542
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $112,528,588) $ 118,382,193
OTHER ASSETS LESS LIABILITIES 1,641,542
------------
NET ASSETS $ 120,023,735
============
</TABLE>

* Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.

# Indicates bonds are segregated by the custodian to cover initial margin
requirements.

Footnote: Non-rated (NR) securities have been determined to be of investment
grade quality by the Fund's Manager.

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

Financial Statements July 31, 1998

Statement of Assets and Liabilities July 31, 1998
- -------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investment in securities, at value (cost: $112,528,588) $ 118,382,193
Variation margin on futures 209,375
Accrued dividends receivable 2,682
Accrued interest receivable 2,042,021
Receivable due from broker 33
Receivable for fund shares sold 25,000
----------------
Total Assets $ 120,661,304
----------------

LIABILITIES
Dividends payable $ 487,619
Accrued expenses 103,365
Payable for fund shares redeemed 40,100
Bank overdraft 6,485
----------------
Total Liabilities $ 637,569
----------------

NET ASSETS $ 120,023,735
================

Net assets are represented by:
Paid-in capital $ 120,108,166
Accumulated undistributed net realized gain(loss) on investments (5,951,996)
Unrealized appreciation on futures 13,960
Unrealized appreciation on investments 5,853,605
----------------
Total amount representing net assets applicable to
9,875,312 outstanding shares of no par common
stock (unlimited shares authorized) $ 120,023,735
================
Net asset value per share $ 12.15
================

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

Statement of Operations for the year ended July 31, 1998
- --------------------------------------------------------

INVESTMENT INCOME
Interest $ 7,227,124
Dividend 44,353
----------------
Total Investment Income $ 7,271,477
----------------
EXPENSES
Investment advisory fees $ 619,124
Service fees 300,911
Custodian fees 15,259
Transfer agent fees 127,991
Accounting service fees 76,138
Transfer agent out of pockets 10,822
Professional fees 12,446
Trustees fees 7,426
Reports to shareholders 7,525
Registration and filing fees 2,595
----------------
Total Expenses $ 1,180,237
Less expenses waived or absorbed
by the Fund's manager 3,901
----------------
Total Net Expenses $ 1,176,336
----------------
NET INVESTMENT INCOME $ 6,095,141
----------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 1,032,578
Futures transactions (2,704,012)
Net change in unrealized appreciation (depreciation) of:
Investments $ (1,080,055)
Futures 13,960
----------------
Net Realized And Unrealized Gain (Loss)
On Investments and Futures $ (2,737,529)
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,357,612
================

</TABLE>

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

Financial Statements July 31, 1998

Statement of Changes in Net Assets For the year ended July 31, 1998
and the year ended July 31, 1997
- -------------------------------------------------------------------
<TABLE>
<CAPTION>
For TheYear Ended For The Year Ended
July 31, 1998 July 31, 1997
--------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 6,095,141 $ 6,521,541
Net realized gain (loss) on investment and futures transactions (1,671,434) (2,222,212)
Net unrealized appreciation (depreciation) on investments and futures (1,066,095) 5,213,589
-------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 3,357,612 $ 9,512,918
-------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.60 and $.61 per share,
respectively) $ (6,095,141) $ (6,521,541)
Distributions from net realized gain on investment transactions 0 0
-------------------------------------
Total Dividends and Distributions $ (6,095,141) $ (6,521,541)
-------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 8,635,428 $ 6,910,719
Proceeds from reinvested dividends 4,211,696 4,496,123
Cost of shares redeemed (18,287,314) (18,545,716)
-------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (5,440,190) $ (7,138,874)
-------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ (8,177,719) $ (4,147,497)

NET ASSETS, BEGINNING OF PERIOD 128,201,454 132,348,951
-------------------------------------
NET ASSETS, END OF PERIOD $ 120,023,735 $ 128,201,454
=====================================
</TABLE>

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

Notes to Financial Statements July 31, 1998

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 five 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 - Securities for which quotations are not readily
available (which will constitute a majority of the securities held by the Fund)
are valued using a matrix system at fair value as determined by Ranson Capital
Corporation, ("Ranson"). The matrix system has been developed based on
procedures approved by the Board of Trustees which include consideration of the
following: yields or prices of municipal bonds of comparable quality, type of
issue, coupon, maturity and rating, indications as to value from dealers and
general market conditions. Because the market value of securities can only be
established by agreement between parties in a sales transaction, and because of
the uncertainty inherent in the valuation process, the fair values as determined
may differ from the values that would have been used had a ready market for the
securities existed. 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, 1998, a net
capital loss carryforward totaling $5,951,996, which may be used to offset
capital gains realized during subsequent years through July 31, 2006.

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.

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.

Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Schedule of Investments. The
Statement of Assets and Liabilities reflects a receivable or payable for the
daily mark to market for variation margin.

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.

At July 31, 1998, the Fund had outstanding futures contracts to sell debt
securities as follows:

Number of Valuation Unrealized
Contracts Expiration Futures as of Appreciation
To Sell Date Contracts July 31, 1998 (Depreciation)
- --------------------------------------------------------------------------------
U.S. Treasury Notes 12/98 100 $209,375 $13,960
- --------------------------------------------------------------------------------

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, 1998, there were unlimited shares of no par authorized; 9,875,312
and 10,321,705 shares were outstanding at July 31, 1998 and July 31, 1997,
respectively.

Transactions in capital shares were as follows:

Shares
-----------------------------
For The For The
Year Ended Year Ended
July 31, 1998 July 31, 1997
-----------------------------
Shares sold 706,375 563,448
Shares issued on reinvestment of dividends 344,664 367,495
Shares redeemed (1,497,432) (1,514,291)
-----------------------------
Net increase (decrease) (446,393) (583,348)
=============================

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 $619,124 of investment advisory fees for
the year ended July 31, 1998. The Fund has a payable to Ranson Capital
Corporation of $50,167 at July 31, 1998 for investment advisory fees. Certain
officers and trustees of the Fund are also officers and directors of the
investment adviser.

The Fund pays an annual service fee to Ranson Capital Corporation, (Ranson), its
principal underwriter, an annual fee for certain expenses incurred by Ranson in
connection with the distribution of the Fund's shares. The annual fee paid to
Ranson is calculated daily and paid monthly by the Fund at the annual rate of
0.25% of the average daily net assets of the Fund. The Fund has recognized
$300,911 of service fee expenses after partial waiver for the year ended July
31, 1998. The Fund has a payable to Ranson of $23,555 at July 31, 1998 for
service 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, 1998
commissions earned by ND Capital, Inc. totaled $84,775 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 $127,991 of transfer agency fees and expenses
for the year ended July 31, 1998. 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
$76,138 of accounting service fees for the year ended July 31, 1998.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from sales of investment securities
(excluding short-term securities) aggregated $32,381,450 and $41,557,431,
respectively, for the year ended July 31, 1998.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1998, the aggregate cost of securities for federal income tax
purposes was $112,528,588, and the net unrealized appreciation of investments
based on the cost was $5,853,605, which is comprised of $5,869,489 aggregate
gross unrealized appreciation and $15,884 aggregate gross unrealized
depreciation.

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

For the Year For the Year For the Year For the Year For the Year
Ended July 31, Ended July 31, Ended July 31, Ended July 31, Ended July 31,
1998 1997 1996 1995 1994
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.42 $ 12.14 $ 12.07 $ 12.00 $ 12.67
----------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income $ .60 $ .61 $ .69 $ .65 $ .66
Net realized and unrealized gain (loss)
on investment and futures transactions (.27) .28 .07 .07 (.53)
----------------------------------------------------------------------------------
Total From Investment Operations $ .33 $ .89 $ .76 $ .72 $ .13
----------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.60) $ (.61) $ (.69) $ (.65) $ (.66)
Distributions from net capital gains .00 .00 .00 .00 (.14)
----------------------------------------------------------------------------------
Total Distributions $ (.60) $ (.61) $ (.69) $ (.65) $ (.80)
----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.15 $ 12.42 $ 12.14 $ 12.07 $ 12.00
==================================================================================

Total Return 2.76%(A) 7.56%(A) 5.90%(A) 6.23%(A) 0.91%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $120,024 $128,201 $132,349 $130,091 $127,337
Ratio of net expenses (after expense
assumption) to average net assets 0.95%(B) 0.93%(B) 0.85%(B) 0.82%(B) 0.70%(B)
Ratio of net investment income to
average net assets 4.93% 5.02% 5.18% 5.46% 5.26%
Portfolio turnover rate 26.68% 18.64% 20.14% 57.00% 55.00%

</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 $3,901, $46,741, $212,056, $295,875, and
$419,129, respectively. If the expenses had not been assumed, the
annualized ratios of total expenses to average net assets would have been
0.95%, 0.97%, 1.01%, 1.06%, and 1.06%, respectively.

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

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, 1998, the
related statement of operations for the year 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 three 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, 1998, 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, 1998, 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 three years in the peiod then ended, in conformity with
generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 04, 1998

Tax Information For The Year Ended July 31, 1998 (Unaudited)

We are required to advise you within 60 days of the Fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. The distributions made during the fiscal year by the
Fund were earned from the following sources:

Dividends and Distributions Per Share
-------------------------------------
From Net From Net
From Net Realized Realized
To Shareholders of Investment Short-Term Long-Term
Record Payment Date Income Gains Gains
- ------------------ ------------------ ---------- ---------- ---------
[S] [C] [C] [C] [C]
August 28, 1997 August 29, 1997 $ 0.049 - -
September 29, 1997 September 30, 1997 0.053 - -
October 30, 1997 October 31, 1997 0.051 - -
November 27, 1997 November 28, 1997 0.047 - -
December 30, 1997 December 31, 1997 0.054 - -
January 29, 1998 January 30, 1998 0.050 - -
February 26, 1998 February 27, 1998 0.044 - -
March 30, 1998 March 31, 1998 0.054 - -
April 29, 1998 April 30, 1998 0.050 - -
May 28, 1998 May 29, 1998 0.048 - -
June 29, 1998 June 30, 1998 0.051 - -
July 30, 1998 July 31, 1998 0.049 - -

Shareholders should consult their tax advisors.

- -----------------------------------------------------------------------------

Dear Shareholder,

We are pleased to enclose the annual report of the operations of The Kansas
Insured Intermediate Fund, for the year ended July 31, 1998. The Fund's
portfolio and related financial statements are presented within for your
review.

As we end the first half of 1998, the 30-year Treasury bond descended to a
record low yield of 5.59% spurred by the strength of the U.S. dollar and
weakness in commodity prices. Asian turmoil has helped put the brakes on
runaway growth in the U.S. economy, in the process restraining the Federal
Reserve from tightening credit. At the same time, a worldwide flight to
quality and a muscle-bound dollar have led investors directly into the U.S.
Treasury market.

The Kansas Insured Intermediate Fund, began the year at $12.23 and then closed
the year at $12.07. The Kansas Insured Intermediate Fund has utilized partial
hedges during the year to protect against the possibility of strong economic
growth. By using a partial hedge to protect against the possibility of
interest rate fluctuations, share prices were tempered as rates declined during
the fiscal year ended July 31, 1998.

Insured double tax-exempt issues continue to be the primary focus for the
Fund's portfolio. Recent purchases have been Topeka and Wellington Kansas
Utility Revenue issues. The average interest rate coupon for the Fund is
currently 5.71% with 100% of the Fund's holdings rated AAA insured by Moody's
or Standard & Poors.

Sincerely,

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

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, assuming all distributions are reinvested.

Consumer Price Index
A commonly used measure of inflation: it does not represent an investment
return.

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 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", and "BBB"
indicate investment grade securities. Ratings can range from a high of "AAA"
to a low of "D".

Portfolio Ratings
[pie chart]
(based on Total Long-Term Investments)

AAA 100%

Quality ratings reflect the ifnancial 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 Corporation, the investment
advisor.

Portfolio Market Sectors
(as a % of Net Assets)
[pie chart]

GO-General Obligation 37.7
HC-Health Care 25.4
H-Housing 19.3
W/S-Water/Sewer 7.5
O-Other 4.1
U-Utilities 3.2
T-Transportation 1.5
C/L-COP/Lease 1.3

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

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

<TABLE>
<CAPTION>
Comparison of change in value of $10,000
investment in The Kansas Insured Intermediate
Fundand Lehman Bros. Municipal 7 Year Maturity Bond Index

The Kansas Insured The Kansas Insured Lehman Bros. Municipal
Intermediate Fund Intermediate Fund 7 Year Maturity Bond Index
w/o sales charge w/ max sales charge
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
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
1998 $13,321 $12,955 $14,273
</TABLE>
Average Annual Total Returns

For periods ending July 31, 1998
--------------------------------
Since Inception
1 year 5 year (November 23, 1992)
- -------------------------------------------------------------------------------
Without sales charge 3.17% 4.23% 5.17%
With sales charge 0.33% 3.65% 4.66%

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. The Lehman Brothers' index is a national index representative of the
national municipal bond market whereas the Fund concentrates its investments
in Kansas municipal bonds. 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. All Fund and benchmark returns include
reinvested dividends. 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.

Key Statistics
- --------------

07/31/97 NAV(share value) $12.23
01/30/98 NAV $12.07
Average Maturity 8.7 years
Number of issues 49
Total Net Assets $20,584,841

Schedule of Investments July 31, 1998

Name of Issuer
Percentages represent the market
value of each investment category
to total net assets

Rating Coupon Principal Market
(Moody's/S&P) Rate Maturity Amount Value
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (95.9%)

Butler Cty., KS (Augusta) USD #402 G.O. AMBAC Aaa/AAA 5.400% 10/01/06 $ 200,000 $ 211,746
*Douglas Cty., KS USD #497 (Lawrence) G.O. FGIC Aaa/AAA 7.200 09/01/02 1,370,000 1,520,536
Johnson Cty., KS USD #232 (Desoto) G.O. MBIA Aaa/NR 5.150 09/01/09 510,000 532,134
Johnson Cty., KS USD #232 (Desoto) G.O. MBIA Aaa/NR 5.200 09/01/10 600,000 624,756
Johnson Cty., KS USD #233 (Olathe) G.O. AMBAC Aaa/AAA 6.150 03/01/07 300,000 2,593
Kansas City, KS (St. Margaret Hlth. Ctr.) AMBAC Aaa/AAA 5.700 08/01/03 250,000 265,810
Kansas City, KS Special Obligation Escrowed Aaa/AAA 6.000 02/15/03 200,000 213,798
KS Devl. Finance Auth. (Hays Medl. Ctr.) Rev. MBI Aaa/AAA 5.300 11/15/09 375,000 391,643
KS Devl. Finance Auth. (Hays Medl. Ctr.) Rev. MBIA Aaa/AAA 5.200 11/15/08 375,000 392,291
#KS Devl. Finance Auth. (Stormont Vail)
Hlth. Care Rev. MBIA Aaa/AAA 5.700 11/15/08 450,000 487,480
KS Devl. Finance Auth. (Stormont Vail)
Hlth. Care Rev. MBIA Aaa/AAA 5.600 11/15/07 100,000 106,635
KS Devl. Finance Auth. Multifamily Hsg. Rev. FNMA NR/AAA 5.700 12/01/09 325,000 331,858
KS Devl. Finance Auth. Pooled Ref. Lease Rev. MBIA Aaa/AAA 5.500 10/01/05 250,000 260,972
KS Devl. Finance Auth. Rev. Public Water Supply AMBAC Aaa/NR 4.900 04/01/13 115,000 113,139
KS State Turnpike Auth. Rev. FGIC Aaa/AAA 5.450 09/01/10 200,000 211,112
Larned, KS (Cath. Hlth. Corp.) Hlth. Facs. Rev. MBIA Aaa/AAA 5.200 11/15/02 160,000 166,288
Larned, KS (Cath. Hlth. Corp.) Hlth. Facs. Rev. MBIA Aaa/AAA 5.300 11/15/03 170,000 177,902
Larned, KS (Cath. Hlth. Corp.) Hlth. Facs. Rev. MBIA Aaa/AAA 5.400 11/15/04 155,000 163,455
Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. ASGUA a/AAA 6.050 02/01/06 350,000 362,674
*Lenexa, KS (Barrington Park) Multifamily
Hsg. Rev. Ref. ASGUA Aaa/AAA 5.875 02/01/04 500,000 516,440
Lenexa, KS (Barrington Park) Multifamily
Hsg. Rev. Ref. ASGUA Aaa/AAA 5.950 02/01/05 250,000 260,085
McPherson Cty., KS (McPherson) USD #418 G.O. CGIC FSA aa/AAA 5.700 09/01/06 400,000 432,840
Olathe, KS (Bristol Pointe) MultiFamily Hsg. Rev. Ref. FNMA NR/AAA 5.250 11/01/12 485,000 491,518
Olathe, KS (Evangelical Lutheran Good Samaritan Soc.) AMBAC Aaa/AAA 5.500 05/01/03 110,000 115,680
Olathe, KS (Evangelical Lutheran Good Samaritan Soc.) AMBAC Aaa/AAA 5.400 05/01/02 150,000 156,212
Olathe, KS (Evangelical Lutheran Good Samaritan Soc.) AMBAC Aaa/AAA 5.200 05/01/01 140,000 144,112
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. AMBAC Aaa/AAA 5.125 09/01/12 500,000 505,430
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. Ref. AMBAC Aaa/AAA 5.600 09/01/05 1,000,000 1,055,250
Sedgwick Cty., KS (Maize) USD #266 G.O. CGIC FSA Aaa/AAA 5.500 09/01/05 300,000 319,398
Sedgwick Cty., KS (Maize) USD #266 G.O. CGIC FSA Aaa/AAA 5.600 09/01/06 200,000 214,316
Sedgwick Cty., KS (Renwick) USD #267 G.O. AMBAC Aaa/AAA 6.000 11/01/07 570,000 611,319
Sedgwick Cty., KS (Renwick) USD #267 G.O. AMBAC Aaa/AAA 5.850 11/01/06 290,000 313,545
Sedgwick\Shawnee Cty., KS Single Family Mrtge. Rev. GNMA Aaa/NR 5.200 12/01/08 565,000 572,537
Seward Cty., KS Hospital Ref. G.O. AMBAC Aaa/AAA 5.600 08/15/04 100,000 104,748
Seward Cty., KS Hospital Ref. G.O. AMBAC Aaa/AAA 5.600 08/15/04 150,000 157,122
Shawnee Cty., KS (Shawnee Heights) USD #450 G.O. CGIC FSA Aaa/AAA 6.500 09/01/00 250,000 262,800
*Shawnee Cty., KS (Topeka) USD #501 G.O. FGIC Aaa/AAA 5.550 02/01/07 820,000 869,257
Topeka, KS (Water & Water Pollution Control Util. Rev.) FSA Aaa/NR 4.650 08/01/11 250,000 246,075
Wellington, KS Utility Rev. AMBAC NR/AAA 5.000 05/01/12 250,000 251,218
Wellington, KS Utility Rev. AMBAC NR/AAA 4.950 05/01/11 300,000 301,389
Wichita, KS (St. Francis Regl. Medl. Ctr.)
Impvt. & Ref. MBIA Aaa/AAA 6.100 10/01/04 775,000 826,204
Wichita, KS (St. Francis Regl. Medl. Ctr.)
Impvt. & Ref. MBIA Aaa/AAA 6.000 10/01/03 250,000 264,315
Wichita, KS Airport Auth. Facs. Rev. Ref. ASGUA Aaa/AAA 7.000 03/01/05 100,000 106,264
# Wichita, KS Multifamily Hsg. Rev. FNMA NR/AAA 5.375 07/01/10 625,000 635,575
*Wichita, KS Multifamily Hsg. (Cimarron Apartments) FNMA NR/AAA 5.250 10/01/12 790,000 801,779
Wichita, KS Water & Sewer Util. Rev. Ref. FGIC Aaa/AAA 5.600 04/01/05 610,000 636,029
Wichita, KS Water & Sewer Util. Rev. Ref. FGIC Aaa/AAA 5.750 10/01/06 150,000 157,215
Wichita, KS Water & Sewer Util. Rev. FGIC Aaa/AAA 5.000 07/01/11 500,000 505,415
Wyandotte Cty., KS Ref. & Impvt. G.O. FGIC Aaa/AAA 7.000 09/01/05 1,020,000 1,046,030
--------------
KANSAS MUNICIPAL BONDS COST($18,994,845) $ 19,736,939
--------------
SHORT-TERM SECURITIES (2.6%)
Federated Tax-Free Fund 73 $ 182,656
Federated Intermediate Municipal Trust 78 350,000
--------------
TOTAL SHORT-TERM SECURITIES (COST: $532,656) $ 532,656
--------------
TOTAL INVESTMENTS IN SECURITIES (COST: $19,527,501) $ 20,269,595
OTHER ASSETS LESS LIABILITIES 315,246
--------------
NET ASSETS $ 20,584,841
==============

</TABLE>
*Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.

# Indicates bonds are segragated by the custodian to cover initial margin
requirements.

FOOTNOTE: Non-rated (NR) securities have been determined to be of investment
grade quality by the Funds Manager.

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

Financial Statements July 31, 1998

Statement of Assets and Liabilities July 31, 1998
- -------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment in securities, at value (cost: $19,527,501) $ 20,269,595
Variation margin on futures 31,406
Accrued interest receivable 375,713
Accrued dividends receivable 629
-----------------
Total Assets $ 20,677,343
-----------------
Liabilities
Dividends payable $ 76,669
Accrued expenses 15,833
-----------------
Total Liabilities $ 92,502
-----------------

Net Assets $ 20,584,841
=================

Net assets are represented by:
Paid-in capital $ 20,683,568
Accumulated undistributed net realized gain(loss) on investments (842,915)
Unrealized appreciation on futures 2,094
Unrealized appreciation on investments 742,094
----------------
Total amount representing net assets applicable to
1,705,829 outstanding shares of no par common
stock (unlimited shares authorized) $ 20,584,841
================
Net asset value per share $ 12.07
================
The accompanying notes are an integral part of these financial statements.

Statement of Operations for the year ended July 31, 1998
- ----------------------------------------------------------

INVESTMENT INCOME
Interest $ 1,138,009
Dividends 24,721
----------------
Total Investment Income $ 1,162,730
----------------
EXPENSES
Investment advisory fees $ 95,378
Custodian fees 2,515
Transfer agent fees 31,858
Accounting service fees 38,166
Transfer agent out of pockets 898
Professional fees 7,561
Trustees' fees 2,545
Reports to shareholders 2,002
Registration and filing fees 702
Amortization of organization costs 1,551
----------------
Total Expenses $ 183,176
Less expenses waived or absorbed
by the Fund's manager 13,708
----------------
Total Net Expenses $ 169,468
----------------
NET INVESTMENT INCOME $ 993,262
----------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 276,158
Futures transactions (401,698)
Net change in unrealized
appreciation(depreciation) of:
Investment transactions $ (214,825)
Futures transactions 2,094
----------------
Net Realized and Unrealized
Gain (Loss) on Investments
and Futures $ (338,271)
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 654,991
================
</TABLE>
The accompanying notes are an integral part of these financial statements.

Financial Statements July 31, 1998

Statement of Changes in Net Assets
For the year ended July 31, 1998 and the year ended July 31, 1997
- -------------------------------------------------------------------
<TABLE>
<CAPTION>

For The Year Ended For The Year Ended
July 31, 1998 July 31, 1997
----------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 993,262 $ 1,196,787
Net realized gain (loss) on
investment and futures transactions (125,540) (411,602)
Net unrealized appreciation (depreciation) on
investments and futures (212,731) 525,690
--------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting From Operations $ 654,991 $ 1,310,875
-------------------------------------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income
($.54 and $.53 per share, Respectively) $ (993,262) $ (1,196,787)
Distributions from net realized gain on
investment transactions 0 0
---------------------------------------------
Total Dividends and Distributions $ (993,262) $ (1,196,787)
---------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 746,870 $ 1,355,388
Proceeds from reinvested dividends 603,378 720,398
Cost of shares redeemed (5,960,554) (7,220,379)
-------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (4,610,306) $ (5,144,593)
-------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ (4,948,577) $ (5,030,505)

NET ASSETS, BEGINNING OF PERIOD 25,533,418 30,563,923
-------------------------------------------
NET ASSETS, END OF PERIOD $ 20,584,841 $ 25,533,418
===========================================
</TABLE>
The accompanying notes are an integral part of these financial statements.

Notes to Financial Statements July 31, 1998

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 five 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

Investment security valuation - Securities for which quotations are not readily
available (which will constitute a majority of the securities held by the Fund)
are valued using a matrix system at fair value as determined by Ranson Capital
Corporation, ("Ranson"). The matrix system has been developed based on
procedures approved by the Board of Trustees which include consideration of the
following: yields or prices of municipal bonds of comparable quality, type of
issue, coupon, maturity and rating, indications as to value from dealers and
general market conditions. Because the market value of securities can only be
established by agreement between parties in a sales transaction, and because
of the uncertainty inherent in the valuation process, the fair values as
determined may differ from the values that would have been used had a ready
market for the securities existed. 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.

Deferred organization costs - Costs incurred by the Fund in connection with
its organization were amortized over a 60-month period on the straight-line
basis. The entire cost of 37,500 has been amortized as of July 31, 1 998.

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, 1998, a net capital loss carryforward totaling $842,915, which may be
used to offset capital gains realized during subsequent years through
July 31, 2006.

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.

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 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.
Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Schedule of Investments. The
Statement of Assets and Liabilities reflects a receivable or payable for the
daily mark to market for variation margin.

At July 31, 1998, the Fund had outstanding futures contracts to sell debt
securities as follows:

Number of Valuation Unrealized
Contracts Expiration Futures as of Appreciation
to Sell Date Contracts July 31, 1998 (Depreciation)
- -------------------------------------------------------------------------------
U.S. Treasury Notes 12/98 15 $ 31,406 $ 2,094

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 31, 1998, there were unlimited shares of no par authorized;
1,705,829 and 2,086,938 shares were outstanding at July 31, 1998 and
July 31, 1997, respectively.

Transactions in capital shares were as follows:

Shares
For The For The
Year Ended Year Ended
July 31, 1998 July 31, 1997
-----------------------------------------------
Shares sold 61,738 110,692
Shares issued on
reinvestment of dividends 49,895 58,878
Shares redeemed (492,742) (589,765)
-----------------------------------------------
Net increase (decrease) (381,109) (420,195)
===============================================

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, 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 $95,378 of investment
advisory fees after partial waiver for the year ended July 31, 1998. The Fund
has a payable to Ranson Capital Corporation of $6,318 at July 31, 1998, for
investment advisory fees. Certain officers and trustees of the Fund are also
officers and directors of the investment adviser.

The Fund has engaged ND Capital, Inc. as agent for the purchase of certain
investment securities. For the year ended July 31, 1998, commissions earned
by ND Capital, Inc. totaled $3,963 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 $31,858 of transfer agency fees and
expenses for the year ended July 31, 1998. 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 $38,166 of accounting service fees for the year ended July 31, 1998.

Note 5. INVESTMENT SECURITY TRANSACTIONS
The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $5,586,009 and $12,187,015
respectively, for the year ended July 31, 1998.

Note 6. INVESTMENT IN SECURITIES
At July 31, 1998, the aggregate cost of securities for federal income tax
purposes was $19,527,501, and the net unrealized appreciation of investments
based on the cost was $742,094, which is comprised of $744,855 aggregate gross
unrealized appreciation and $2,761 aggregate gross unrealized depreciation.

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, July 31 July 31, July 31, July 31,
1998 1997 1996 1995 1994
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.23 $ 12.19 $ 12.04 $ 11.92 $ 12.24
---------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income $ .54 $ .53 $ .53 $ .54 $ .52
Net realized and unrealized
gain (loss) on investment
and futures transactions (.16) .04 .15 .12 (.30)
-------------------------------------------------------------------------------
Total From Investment Operations $ .38 $ .57 $ .68 $ .66 $ .22
-------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.54) $ (.53) $ (.53) $ (.54) $ (.52)
Distributions from net capital gains .00 .00 .00 .00 (.02)
-------------------------------------------------------------------------------
Total Distributions $ (.54) $ (.53) $ (.53) $ (.54) $ (.54)
-------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 12.07 $ 12.23 $ 12.19 $ 12.04 $ 11.92
===============================================================================
Total Return 3.17%(A) 4.76%(A) 5.75%(A) 5.72%(A) 1.81%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $20,585 $25,533 $30,564 $30,678 $31,216
Ratio of net expenses
(after expense assumption)
to average net assets .75%(B) 0.76%(B) 0.69%(B) 0.62% (B) 0.51% (B)
Ratio of net investment
income to average net assets 4.42% 4.33% 4.37% 4.57% 4.26%
Portfolio turnover rate 25.46% 28.68% 19.96% 63.00% 56.00%
</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 $13,708, $40,608, $71,943, $112,745, and
$136,079, respectively. If the expenses had not been assumed, the annualized
ratios of total expenses to average net assets would have been
0.82%, 0.90%, 0.92%, 0.98%, and 0.99%, respectively.

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

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 Portfolio), including the schedule of investments, as of July
31, 1998, the related statement of operations for the year 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 three 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, 1998, 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 Portfolio, as of
July 31, 1998, 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 three years in the period
then ended, in conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 04, 1998

Tax Information For The Year Ended July 31, 1998 (Unaudited)

<TABLE>
<CAPTION>
Dividends and Distributions Per Share
-------------------------------------

From Net From Net From Net
To Shareholders Payment Investment Realized Realized
of Record Date Income Short-Term Gains Long-Term Gains
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 28, 1997 August 29, 1997 $ 0.043 - -
September 29, 1997 September 30, 1997 0.045 - -
October 30, 1997 October 31, 1997 0.045 - -
November 27, 1997 November 28, 1997 0.042 - -
December 30, 1997 December 31, 1997 0.048 - -
January 29, 1998 January 30, 1998 0.045 - -
February 26, 1998 February 27, 1998 0.040 - -
March 30, 1998 March 31, 1998 0.049 - -
April 29, 1998 April 30, 1998 0.045 - -
May 28, 1998 May 29, 1998 0.043 - -
June 29, 1998 June 30, 1998 0.046 - -
July 30, 1998 July 31, 1998 0.045 - -

</TABLE>
Shareholders should consult their tax advisors.

- --------------------------------------------------------- --------------

Dear Shareholder:

We are pleased to enclose the annual report of the operations of The Nebraska
Municipal Fund, for the year ended July 31, 1998. The Fund's portfolio and
related financial statements are presented within for your review.

The Nebraska Municipal Fund, began the year at $11.26 and then closed the year
at $11.13. The Nebraska Municipal Fund has utilized partial hedges during the
year to protect against the possibility of strong economic growth. By using a
partial hedge to protect against the possibility of interest rate fluctuations,
share prices were tempered as rates declined during the fiscal year ended
July 31, 1998.

High quality double-exempt issues continues to be the primary focus of the
Fund's portfolio. Recent purchases in the primary and secondary markets have
been Nebraska Single Family Housing and Madison County Hospital issues. The
average interest rate coupon for the Fund is currently 5.95% with more than 43%
of the Fund's holdings rated AAA insured by Moody's or Standard & Poors.

The investment objective of the Fund is to provide a high level of current
income exempt from both federal income tax and, to the extent indicated in the
prospectus, Nebraska income tax as is consistent with preservation of capital.

Sincerely,

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

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, assuming all distributions are reinvested.

Consumer Price Index
A commonly used measure of inflation: it does not represent an investment
return.

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 sales charge.

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

Portfolio Ratings
(based on Total Long-Term Investments)
- --------------------------------------
[pie chart]
AAA 43.4
AA 23.0
A 18.5
BBB 00.4
NR 14.7

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 Corporation, the investment advisor.

Portfolio Market Sectors
(as a % of Net Assets)
- ------------------------
[pie chart]
H-Housing 24.4
GO-General Obligation 16.3
S-School 15.9
U-Utilities 14.7
HC-Health Care 13.0
O-Other 7.2
I-Industrial 3.5
C/L-Cop/Lease 3.0
W/S-Water/Sewer 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 Municipal The Nebraska Municipal The Lehman Brother's
Fund w/o sales charge Fund w/ max sales charge Muni Bond Index
----------------------------------------------------------------------
11/17/93 $10,000 $ 9,575 $10,000
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
1998 $12,380 $11,853 $13,295

Average Annual Total Returns
- ----------------------------

For periods ending July 31, 1998
Since Inception
1 year 5 year (November 17, 1993)
- ----------------------------------------------------------------------------
Without sales charge 3.96% NA 4.64%
With sales charge (0.46)% NA 3.68%
- -----------------------------------------------------------------------------

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. The Lehman Brothers index is a national index representative of the
national municipal bond market whereas the Fund concentrates its investments in
Nebraska municipal bonds. 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. All Fund and benchmark returns include reinvested dividends.
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.

Key Statistics
- --------------

07/31/97 NAV(share value) $11.26
07/31/98 NAV $11.13
Average Maturity 20.6 years
Number of Issues 65
Total Net Assets $26,318,378

Name of Issuer
Percentages represent the market value of each investment
category to total net assets
Rating
(Unaudited) Coupon Principal Market
Moody's/S&P Rate Maturity Amount Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NEBRASKA MUNICIPAL BONDS (98.3%)

Adams Cty., NE Hosp. Auth. #1 (Mary Lanning Memorial) ASGUA NR/AA 5.300% 12/15/18 $ 250,000 $ 248,555
Chadron State College, NE Student Fees & Facs. Rev. Ref. NR/NR 5.700 07/01/11 300,000 305,742
Cuming Cty., NE School Dist. #020 (Bancraft-Rosalie) NR/NR 5.750 12/15/17 100,000 102,543
Dawson Cty., NE SID #1 Ref. G.O. A-3/A- 5.650 02/01/22 300,000 309,051
Douglas Cty., NE (Cath. Hlth. Corp.) Rev. MBIA Aaa/AAA 5.500 11/15/21 340,000 350,499
Douglas Cty., NE Hosp. Auth #2 (Bethphage Project) Rev. NR/NR 5.400 02/01/13 120,000 119,224
Douglas Cty., NE SID #240 (LeBea) Ref. G.O. NR/NR 5.900 10/15/17 100,000 102,164
Douglas Cty., NE SID #295 G.O. NR/NR 6.500 06/01/17 800,000 828,832
Douglas Cty., NE SID #363 Hillsborough G.O. NR/NR 5.850 09/15/17 100,000 101,710
Douglas Cty., NE SID #392 Cinnamon Creek G.O. NR/NR 5.750 08/15/17 200,000 201,136
Douglas Cty., NE SID #396 First National Business Park NR/NR 5.750 09/01/17 100,000 100,561
Gage Cty., NE (Beatrice) School Dist. #15 G.O. AMBAC NR/AAA 5.900 12/15/16 850,000 897,540
Grand Island, NE Sewer Syst. Rev. A/NR 6.000 04/01/14 250,000 277,215
Hastings, NE Elec. Rev. A/A 6.300 01/01/19 370,000 400,980
Hemingford, NE G.O. NR/NR 5.600 02/15/12 115,000 118,920
Kearney Cty., NE Combined Util. Rev. A-1/NR 6.100 06/01/14 600,000 643,098
Kearney Cty., NE School Dist. #503 G.O. NR/NR 6.150 12/15/12 100,000 104,679
Lancaster Cty., NE (Bryan Memorial Hospital) Rev. MBIA NR/AAA 5.375 06/01/19 750,000 755,602
Lancaster Cty., NE Lincoln Medl. Educ. Foundn. Hospital Rev. NR/NR 5.700 02/01/11 100,000 104,295
Lancaster Cty., NE Lincoln Medl. Educ. Foundn. Hospital Rev. NR/NR 5.800 02/01/12 175,000 182,628
Lincoln, NE Elec. Syst. Rev. AA/AA+ 5.750 09/01/16 750,000 780,600
Lincoln/Lancaster Cty., NE Public Bldg. Community Rev. AA/AA+ 5.875 10/15/23 850,000 900,303
Lincoln/Lancaster Cty., NE Public Bldg. Community AA/AA+ 5.800 10/15/18 475,000 510,729
Madison Cty., NE Hosp. Auth. #1 Rev. Asset GUAR NR/AA 5.350 01/01/18 100,000 98,994
NE Educ. Finance Auth. (Creighton Univ.) Rev. AMBAC Aaa/AAA 5.950 01/01/11 300,000 318,864
NE Educ. Finance Auth. (Midland Lutheran College) Rev. G.O. NR/NR 6.250 06/15/15 100,000 104,087
NE Educ. Finance Auth. (York College Project) Rev. NR/NR 5.400 10/15/12 275,000 280,162
NE Hgr. Educ. Loan Program Junior Subord. Term A/NR 6.450 06/01/18 400,000 428,968
NE Hgr. Educ. Loan Program Senior Subord. Term A/NR 6.250 06/01/18 800,000 839,272
* NE Hgr. Educ. Loan Program Student Loan A/NR 5.875 06/01/14 1,350,000 1,387,422
NE Investment Fin Auth. (Great Plains Regl. Medl. Ctr.) ASGUA NR/AA 5.450 11/15/17 400,000 393,732
NE Invmt. Finance Auth. (Great Plains Regl. Medl. Ctr.) ASGUA NR/AA 6.500 05/15/14 150,000 161,172
NE Invmt. Finance Auth. (Muirfield Greens) Multifamily Rev. FHA AA/NR 6.800 12/01/15 370,000 390,631
NE Invmt. Finance Auth. (Muirfield Greens) Multifamily Rev. FHA AA/NR 6.850 12/01/25 525,000 557,524
# NE Invmt. Finance Auth. Children (Healthcare Svcs.) Rev. AMBAC NR/AAA 5.500 08/15/27 1,000,000 1,017,200
NE Invmt. Finance Auth. Multifamily Hsg. Rev. FNMA NR/AAA 6.200 06/01/28 495,000 502,489
NE Invmt. Finance Auth. Multifamily Hsg. Rev. GNMA NR/AAA 6.000 06/01/17 500,000 508,340
NE Invmt. Finance Auth. Multifamily Hsg. Rev. GNMA NR/AAA 6.100 06/01/29 500,000 508,350
* NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 6.600 09/01/20 700,000 726,733
NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 6.500 09/01/18 400,000 409,824
NE Invmt. Finance Auth. Single Family Hsg. Rev. Aaa/AAA 6.300 09/01/28 1,105,000 1,133,664
NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 5.850 09/01/28 470,000 476,660
NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 5.850 09/01/28 400,000 405,668
NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 5.650 03/01/28 240,000 241,133
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA NR/AAA 6.200 09/01/17 250,000 257,320
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA Aaa/AAA 6.250 03/01/21 300,000 306,528
NE Public Power Dist. Power Supply Syst. Rev. A-1/A+ 6.125 01/01/15 390,000 420,962
NE Public Power Dist. Power Supply Syst. Rev. A-1/A+ 5.750 01/01/20 540,000 567,081
NE Student Loan Program B Rev. A/NR 6.000 06/01/28 100,000 100,500
Northeast NE Juvenile Auth. 1st Mrtge. Rev. NR/NR 6.375 06/01/17 280,000 286,541
Northeast NE Solid Waste Facs. Rev. MBIA Aaa/AAA 5.900 05/15/15 600,000 629,886
Omaha, NE Parking Facs. Corp. (Omaha Park 4\5) Lease Rev. Aa-1/AAA 5.700 09/15/15 750,000 792,608
Omaha, NE Public Power Dist. Elec. Syst. Rev. NR/AA 6.000 02/01/15 330,000 345,817
Omaha, NE Public Power Dist. Elec. Syst. Rev. AA/AA 6.200 02/01/17 650,000 715,793
Omaha, NE Various Purpose Aaa/AAA 6.250 12/01/12 250,000 277,188
Omaha, NE Various Purpose Aaa/AAA 6.250 12/01/14 250,000 277,625
Otoe Cty., NE School Dist. #111 (Nebraska City) Ref. AMBAC Aaa/AAA 5.800 11/15/14 400,000 428,616
Papillion, NE G.O. NR/NR 6.150 07/01/12 105,000 110,259
Sarpy Cty., NE SID #142 (Fair Meadows) Ref. G.O. NR/NR 5.850 08/15/17 100,000 101,024
Sarpy Cty., NE SID #52 (Prairie Corners) G.O. NR/NR 6.000 10/01/17 300,000 306,447
Sarpy Cty., NE SID #86 (Willow Springs) G.O. NR/NR 6.250 01/15/17 100,000 103,950
Washington Cty., NE School Dist. #1 G.O. NR/A 5.800 07/15/11 100,000 105,773
Washington Cty., NE School Dist. #1 G.O. NR/A 5.900 07/15/15 135,000 144,634
York, NE Sewer Syst. Rev. NR/NR 5.850 06/01/12 140,000 147,878
York, NE Sewer Syst. Rev. NR/NR 6.000 06/01/17 100,000 106,629
----------
TOTAL NEBRASKA MUNICIPAL BONDS (COST: $24,719,742) $ 25,870,554
----------
SHORT-TERM SECURITIES (0.9%)
Federated Tax-Free Fund 73 $ 241,113
-----------
TOTAL SHORT-TERM SECURITIES (COST: $241,113) $ 241,113
-----------
TOTAL INVESTMENTS IN SECURITIES (COST: $24,960,855) $ 26,111,667
OTHER ASSETS LESS LIABILITIES 206,711
-----------
NET ASSETS $ 26,318,378
===========
</TABLE>

* Indicates bonds are segregated by the custodian to cover when-issued or
delayed-delivery purchases.

# Indicates bonds are segregated by the custodian to cover initial margin
requirements.

Footnote: Non-rated (NR) securities have been determined to be of investment
grade quality by the Fund's Manager.

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

Financial Statements July 31, 1998

Statement of Assets and Liabilities July 31, 1998
- -------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in securities, at value (Cost: $24,960,855) $ 26,111,667
Accrued interest receivable 393,121
Accrued dividends receivable 935
Deferred organization costs 1,868
Variation margin on futures 41,875
---------------
Total Assets $ 26,549,466
---------------

Liabilities
Dividends payable $ 109,644
Accrued expenses 18,894
Security purchases payable 102,550
---------------
Total Liabilities $ 231,088
---------------
Net Assets $ 26,318,378
===============

Net assets are represented by:
Paid-in capital 26,677,203
Accumulated undistributed net realized gain(loss) on investments (1,512,429)
Unrealized appreciation on futures 2,792
Unrealized appreciation on investments 1,150,812
---------------
Total amount representing net assets applicable to
2,365,171 outstanding shares of no par common
stock (Unlimited shares authorized) $ 26,318,378
===============
Net asset value per share $ 11.13
===============

Statement of Operations for the year ended July 31, 1998
- ---------------------------------------------------------

INVESTMENT INCOME
Interest $ 1,535,604
Dividends 15,665
--------------
Total Investment Income $ 1,551,269
--------------
EXPENSES
Investment advisory fees $ 80,205
Service fees 28,851
Custodian fees 3,619
Transfer agent fees 41,585
Accounting service fees 40,831
Transfer Agent out-of-pocket fees 2,455
Professional fees 7,555
Reports to shareholders 2,514
Trustees fees 2,762
Registration and filing fees 6,413
Amortization of organization costs 5,481
--------------
Total Expenses $ 222,271
Less expenses waived or absorbed
by the Fund's manager 51,233
--------------
Total Net Expenses $ 171,038
--------------
NET INVESTMENT INCOME $ 1,380,231
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 131,901
Futures transactions (515,806)
Net change in unrealized appreciation (depreciation) of
Investments 47,086
Futures 2,792
--------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures $ (334,027)
--------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,046,204
==============

</TABLE>

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

Financial Statements July 31, 1998

Statement of Changes in Net Assets For the Year end July 31, 1998
and the year ended July 31, 1997
- -----------------------------------------------------------------
<TABLE>
<CAPTION>
For The Year Ended For the Year Ended
July 31, 1998 July 31, 1997
-----------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 1,380,231 $ 1,223,208
Net realized gain (loss) on investment and futures transactions (383,905) (586,350)
Net unrealized appreciation (depreciation) on investments and futures 49,878 1,151,347
---------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 1,046,204 $ 1,788,205
---------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.56 and $.55 per share,
respectively) $ (1,380,231) $ (1,223,208)
Distributions from net realized gain on investment and futures transactions 0 0
---------------------------------------
Total Dividends and Distributions $ (1,380,231) $ (1,223,208)
---------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 2,803,618 $ 13,035,407
Proceeds from reinvested dividends 915,428 787,747
Cost of shares redeemed (4,868,195) (4,663,555)
---------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (1,149,149) $ 9,159,599
---------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ (1,483,176) $ 9,724,596

NET ASSETS, BEGINNING OF PERIOD $ 27,801,554 $ 18,076,958
---------------------------------------
NET ASSETS, END OF PERIOD $ 26,318,378 $ 27,801,554
=======================================

</TABLE>

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

Notes to Financial Statements July 31, 1998

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 five 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.

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 beginning December 12, 1993. Accumulated amortization at July 31, 1998
totaled $25,186 leaving an unamortized balance of $1,868.

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, 1998, a net
capital loss carryforward totaling $1,512,429, which may be used to offset
capital gains realized during subsequent years through July 31, 2006.

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.

Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Schedule of Investments.
The Statement of Assets and Liabilities reflects a receivable or payable for the
daily mark to market for variation margin.

At July 31, 1998, the Fund had outstanding futures contracts to sell debt
securities as follows:

Number of Valuation Unrealized
Contracts Expiration Futures as of Appreciation
To Sell Date Contracts July 31, 1998 (Depreciation)
- -----------------------------------------------------------------------------
U.S. Treasury Notes 12/98 20 $41,875 $2,792
- -----------------------------------------------------------------------------

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 31, 1998, there were unlimited shares of no par authorized; 2,365,171
and 2,468,032 shares were outstanding at July 31, 1998 and July 31, 1997,
respectively.

Transactions in capital shares were as follows:

Shares
-------------------------------
For The For The
Year Ended Year Ended
July 31, 1998 July 31, 1997
-------------------------------
Shares sold 251,824 1,172,643
Shares issued on reinvestment of dividends 82,101 71,004
Shares redeemed (436,786) (419,638)
-------------------------------
Net increase (decrease) (102,861) 824,009
===============================

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 $80,205 of investment advisory fees after
partial waiver for the year ended July 31, 1998. The Fund has a payable to
Ranson Capital Corporation of $6,939 at July 31, 1998 for investment advisory
fees. Certain officers and trustees of the Fund are also officers and directors
of the investment adviser.

The Fund pays an annual service fee to Ranson Capital Corporation (Ranson), its
principal underwriter, in connection with the distribution of the Fund's shares.
The annual fee paid to Ranson is calculated daily and paid monthly by the Fund
at the annual rate of 0.25% of the average daily net assets of the Fund. The
Fund has recognized $28,851 of service fee expenses after partial waiver for the
year ended July 31, 1998. In addition, the Fund has engaged ND Capital, Inc. as
agent for the purchase of certain investment securities. For the year ended
July 31, 1998, commissions earned by ND Capital, Inc. totaled $1,875 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 incurred $41,585 of transfer agency fees for the year ended July 31,
1998. 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 $40,831 of accounting service fees
for the year ended July 31, 1998.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $7,077,939 and $8,661,369
respectively, for the year ended July 31, 1998.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1998, the aggregate cost of securities for federal income tax
purposes was $24,960,855, and the net unrealized appreciation of investments
based on the cost was $1,150,812 which is comprised of $1,155,906 aggregate
gross unrealized appreciation and $5,094 aggregate gross unrealized
depreciation.

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

For the Period
Since Inception
For the Year For the Year For the Year For the Year (Nov. 17. 1993)
Ended July 31, Ended July 31, Ended July 31, Ended July 31, Through July 31,
1998 1997 1996 1995 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.26 $ 11.00 $ 10.95 $ 10.82 $ 11.49
--------------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income $ .56 $ .55 $ .57 $ .59 $ .45
Net realized and unrealized gain (loss)
on investment and futures transactions (.13) .26 .05 .13 (.67)
--------------------------------------------------------------------------------
Total From Investment Operations $ .43 $ .81 $ .62 $ .72 $ (.22)
--------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.56) $ (.55) $ (.57) $ (.59) $ (.45)
Distributions from net capital gains .00 .00 .00 .00 .00
--------------------------------------------------------------------------------
Total Distributions $ (.56) $ (.55) $ (.57) $ (.59) $ (.45)
--------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.13 $ 11.26 $ 11.00 $ 10.95 $ 10.82
================================================================================

Total Return 3.95%(A) 7.57%(A) 5.73%(A) 7.14%(A) (3.20)%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $26,318 $27,802 $18,077 $14,445 $8,171
Ratio of net expenses (after expense
assumption) to average net assets 0.63%(C) 0.71%(C) 0.62%(C) 0.35%(C) 0.19%(B)(C)
Ratio of net investment income to
average net assets 5.06% 5.03% 5.13% 5.63% 5.51%(B)
Portfolio turnover rate 26.36% 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 $51,233, $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
0.81%, 1.22%, 1.38%, 1.66%, and 2.25%, respectively.

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

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, 1998, the
related statement of operations, 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 three 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.

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 Portfolio, as of July 31, 1998,
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 three years in the period then ended, in conformity
with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 04, 1998

Tax Information For The Year Ended July 31, 1998 (Unaudited)

Dividends and Distributions Per Share
-------------------------------------
From Net From Net
From Net Realized Realized
To Shareholders of Investment Short-Term Long-Term
Record Payment Date Income Gains Gains
- ------------------ ------------------ ---------- ---------- ---------
[S] [C] [C] [C] [C]
August 28, 1997 August 29, 1997 $ 0.046 - -
September 29, 1997 September 30, 1997 0.049 - -
October 30, 1997 October 31, 1997 0.047 - -
November 27, 1997 November 28, 1997 0.044 - -
December 30, 1997 December 31, 1997 0.050 - -
January 29, 1998 January 30, 1998 0.047 - -
February 26, 1998 February 27, 1998 0.042 - -
March 30, 1998 March 31, 1998 0.051 - -
April 29, 1998 April 30, 1998 0.047 - -
May 28, 1998 May 29, 1998 0.045 - -
June 29, 1998 June 30, 1998 0.049 - -
July 30, 1998 July 31, 1998 0.046 - -

Shareholders should consult their tax advisors.

- -----------------------------------------------------------------------------

Dear Shareholder,

We are pleased to enclose the annual report of the operations of The Oklahoma
Municipal Fund, for the year ended July 31, 1998. The Fund's portfolio and
related financial statements are presented within for your review.

As we end the first half of 1998, the 30-year Treasury bond descended to a
record low yield of 5.59% spurred by the strength of the U.S. dollar and
weakness in commodity prices. Asian turmoil has helped put the brakes on
runaway growth in the U.S. economy, in the process restraining the Federal
Reserve from tightening credit. At the same time, a worldwide flight to
quality and a muscle-bound dollar have led investors directly into the U.S.
Treasury market.

The strength of the dollar is helping bonds both directly and indirectly.

Dollar-denominated securities are more attractive and at the same time
widening the trade deficit. Cheap foreign goods have helped keep inflation
in check.

On the other hand, it is easy to imagine a sudden jolt of bad news.
Unexpected increases in companies labor costs or fighting in the Middle East
would send inflation higher. The latest Consumer Price Index figures
increased at a 2.7% annual rate over the last six months, up from a 1.9% rate
in the prior six months.

The Oklahoma Municipal Fund, began the year at $11.86 and then closed the
year at $11.68. The Oklahoma Municipal Fund has utilized partial hedges in
1998 to protect against the possibility of strong economic growth. By using
a partial hedge to protect against the possibility of interest rate
fluctuations, share prices were tempered as rates declined during the fiscal
year ended July 31, 1998.

High quality double-exempt issues continues to be the primary focus of the
Fund's portfolio. Double-exempt issues now comprise approximately 93% of the
portfolio. Recent purchases have been new issues for Oklahoma State
University, Oklahoma Turnpike Authority and Capital Improvement Authority for
the Department of Corrections. Secondary purchases include Oklahoma
Municipal Authority and Grand River Dam issues.

The average interest rate coupon is currently 5.5% with over 53% of the
Fund's holdings rated AAA insured by Moody's Investor Service and Standard &
Poors Corporation.

The investment objective of the Fund is to provide a high level of current
income exempt from both federal income tax and, to the extent indicated in
the prospectus, Oklahoma income tax as is consistent with preservation of
capital.

Sincerely,

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

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, assuming all distributions are reinvested.

Consumer Price Index
A commonly used measure of inflation: it does not represent an investment
return.

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.

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 sales charge.

Quality Ratings
A designation assigned by independent rating companies to give a relative
indication of a bond's credit worthiness. "AAA", "AA", "A", and "BBB"
indicate investment grade securities. 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 53.7
AA 15.7
A 8.4
BBB 4.0
NR 18.2

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 Corporation, the
investment advisor.

Portfolio Market Sectors
(as a % of Net Assets)
- ------------------------
[pie chart]
S-School 40.2
GO-General Obligation 12.8
U-Utilities 12.6
T-Transportation 7.8
HC-Health Care 7.6
O-Other 7.0
I-Industrial 6.8
W/S-Water/Sewer 5.2

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 Bros. Municipal Bond Index

The Oklahoma Municipal The Oklahoma Municipal Lehman Bros
Fund w/o sales charge Fund w/ max sales charge Muni Bond Index
- ------------------------------------------------------------------------------
09/25/96 $10,000 $9,575 $10,000
1997 $10,779 $10,321 $11,027
1998 $11,186 $10,711 $11,687

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

For periods ending July 31, 1998
Since Inception
1 year 5 year (September 25, 1996)
- ------------------------------------------------------------------------------
Without sales charge 3.78% NA 6.26%
With sales charge (0.63)% NA 3.79%

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. The Lehman Brothers index is a national index representative of the
national municipal bond market whereas the Fund concentrates its investments
in Oklahoma municipal bonds. 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. All Fund and benchmark returns include
reinvested dividends. 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.

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

07/31/97 NAV(share value) $11.86
07/31/98 NAV $11.68
Average Maturity 18.4 years
Number of Issues 44
Total Net Assets $11,335,236

<TABLE>
<CAPTION>
Name of Issuer
Percentages represent the market value of
each investment category to total net assets Rating
(Unaudited) Coupon Principal Market
Moody's/S&P Rate Maturity Amount Value
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OKLAHOMA MUNICIPAL BONDS (97.3%)

Eastern OK Board of Regents (State College) Student Facs. Rev. NR/NR 6.100% 06/01/17 $ 150,000 $ 156,636
Grand River Dam Auth. Rev. Ref. A/A 5.000 06/01/12 100,000 99,700
Grand River Dam Auth., OK Rev. AMBAC Aaa/AAA 5.500 06/01/09 75,000 80,717
*Grand River Dam Auth., OK Rev. AMBAC Aaa/AAA 6.250 06/01/11 210,000 237,678
Grand River Dam Auth., OK Rev. Ref. AMBAC Aaa/AAA 5.500 06/01/13 190,000 201,934
OK Board of Regents (OAMC) Connors State College MBIA NR/AAA 4.650 06/01/18 570,000 541,261
OK Board of Regents (OK State Univ. Fac.) AMBAC Aaa/NR 5.000 08/01/24 400,000 396,132
OK Board of Regents (Northeastern State Univ. Ctr.) Rev. FSA Aaa/AAA 5.100 03/01/16 140,000 142,548
Oklahoma City, OK Finance Auth. (Epworth Villa) Rev. Ref. NR/NR 6.500 04/01/15 200,000 206,470
Oklahoma City, OK Finance Auth. (Epworth Villa) Rev. Ref. NR/NR 7.000 04/01/22 200,000 208,076
Oklahoma Cty., OK Indl. Auth. (Benevolent Association) Baa1/NR 6.150 01/01/11 100,000 104,132
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 6.200 11/01/07 100,000 109,333
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 6.500 11/01/13 75,000 82,707
OK Devl. Finance Auth. (Central OK Univ.) Aa3/AA 5.300 12/01/18 100,000 102,686
OK Devl. Finance Auth. (Bake Rite Inc. Project) Rev. NR/NR 8.500 08/01/14 250,000 259,625
OK Devl. Finance Auth. Public Facs. (Univ.) Rev. FSA Aaa/AAA 5.625 07/01/13 50,000 53,778
*OK Devl. Finance Auth. Public Facs. (Tulsa Vo Tech Dist.) AMBAC Aaa/NR 5.100 08/01/15 750,000 761,093
OK Devl. Finance Auth. (DHS Cty. Office Bldg.) Rev. A/NR 5.250 11/01/11 120,000 121,345
OK Devl. Finance Auth. (DHS Cty. Office Bldg.) Rev. A/NR 5.300 11/01/12 275,000 277,508
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 5.750 03/01/13 400,000 394,188
#OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 6.000 03/01/18 600,000 588,732
*OK Devl. Finance Auth. (Oklahoma City Univ.) Rev. Ref. AMBAC Aaa/AAA 5.125 06/01/17 545,000 539,866
OK State Unlimited Tax G.O. Aa3/AA 5.200 07/15/16 350,000 360,388
OK State Unlimited Tax G.O. Aa3/AA 5.200 07/15/18 90,000 92,950
OK State Unlimited Tax G.O. Aa3/AA 5.100 07/15/13 90,000 92,689
OK Capital Impvt. Auth. (Dept. of Corrections) AMBAC Aaa/AAA 5.000 05/01/18 500,000 497,010
OK Capital Impvt. Auth. Rev. A/NR 5.500 10/01/16 105,000 109,641
OK Capital Impvt. Auth. (State Highway) Rev. MBIA Aaa/AAA 5.00 06/01/08 250,000 259,890
OK State Indl. Finance Auth. Unlimited G.O. Aa3/NR 5.300 09/01/11 50,000 52,322
OK State Indl. Finance Auth. Unlimited G.O. Aa3/NR 5.400 09/01/12 50,000 51,971
OK State Indl. Finance Auth. G.O. Aa3/NR 5.000 04/01/13 400,000 396,816
OK State Municipal Power Auth. Rev. Aaa/AAA 5.875 01/01/12 100,000 109,877
OK State Municipal Power Auth. Rev. MBIA Aaa/AAA 5.750 01/01/24 170,000 187,393
OK State Student Loan Auth. A1/NR 6.350 09/01/25 100,000 101,500
OK State Turnpike Auth. Rev. A1/A+ 6.125 01/01/20 200,000 214,732
OK State Turnpike Auth. Rev. AMBAC Aaa/AAA 5.500 01/01/22 150,000 157,932
OK State Turnpike Auth. Rev. FGIC Aaa/AAA 5.000 01/01/14 250,000 250,692
OK State Water (Loan Program) Rev. NR/AA 6.250 10/01/12 50,000 54,761
OK State Water (Loan Program) Rev. NR/AA 5.400 09/01/15 105,000 110,730
*OK State Water (Loan Program) Rev. NR/AA 5.100 09/01/16 415,000 423,188
Puerto Rico Commonwealth Unlimited G.O. MBIA Aaa/AAA 5.375 07/01/21 400,000 408,152
Puerto Rico Elec. Power Auth. Rev. MBIA Aaa/AAA 5.375 07/01/27 500,000 509,895
Shawnee, OK Hospital Auth. (Midamerica Hlth. Care) NR/BBB 6.125 10/01/14 325,000 340,041
University of OK Board of Regents Multiple Facs. AMBAC Aaa/AAA 4.900 05/01/17 590,000 584,236
-----------

TOTAL OKLAHOMA MUNICIPAL BONDS (COST: $10,925,012) $ 11,032,951
-----------
SHORT-TERM SECURITIES (4.8%)
Federated Tax-Free Fund 73 $ 78,033
Federated Intermediate Municipal Trust 78 465,995
-----------
TOTAL SHORT-TERM SECURITIES (COST: $544,175) $ 544,028
-----------

TOTAL INVESTMENTS IN SECURITIES (COST: $11,469,187) $ 11,576,979
OTHER ASSETS LESS LIABILITIES (241,743)
------------
NET ASSETS $ 11,335,236
============

</TABLE>
Indicates bonds are segregated by the custodian to cover when-issued or
delayed delivery purchases.

# Indicates bonds are segregated by the custodian to cover initial margin
requirements.

Footnote: Non-rated (NR) investments have been determined to be of
investment grade quality by the Fund's Manager.

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

Financial Statements July 31, 1998

Statement of Assets and Liabilities July 31, 1998
- --------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in securities, at value (Cost: $11,469,187) $ 11,576,979
Accrued interest receivable 157,987
Accrued dividends receivable 1,285
Receivable for fund shares sold 10,600
Deferred organization costs 20,502
Variation margin on futures 20,938
------------
Total Assets $ 11,788,291
------------

Liabilities
Dividends payable $ 45,936
Security purchases payable 397,231
Accrued expenses 9,888
------------
Total Liabilities $ 453,055
------------
Net Assets $ 11,335,236
============

Net assets are represented by:
Paid-in capital $ 11,294,193
Accumulated undistributed net realized gain
(loss) on investments (68,145)
Unrealized appreciation on investments 107,792
Unrealized appreciation on futures 1,396
------------
Total amount representing net assets applicable to
970,625 outstanding shares of no par common
stock (unlimited shares authorized) $ 11,335,236
============
Net asset value per share $ 11.68
============

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

Statement of Operations For the Year Ended July 31, 1998

INVESTMENT INCOME
Interest $ 528,875
Dividends 13,949
------------
Total Investment Income $ 542,824
------------

EXPENSES
Investment advisory fees $ 3,899
Custodian fees 1,306
Registration and filing fees 5,983
Transfer agent fees 16,686
Accounting service fees 29,198
Transfer agent out-of-pocket expenses 851
Trustees fees 1,983
Reports to shareholders 1,166
Amortization of organization costs 5,310
Professional fees 6,869
------------
Total Expenses $ 73,251
Less expenses waived or absorbed
by the Fund's manager 53,180
------------
Total Net Expenses $ 20,071
------------
NET INVESTMENT INCOME $ 522,753
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FUTURES
Net realized gain (loss) on:
Investment transactions $ 35,352
Futures transactions (103,497)
Net change in unrealized appreciation
(depreciation) of:
Investments (32,299)
Futures 1,396
------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures $ (99,048)
-------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 423,705
=============
</TABLE>

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

Financial Statements July 31, 1998

Statement of Changes in Net Assets
For the Year ended July 31, 1998 and the period since inception
(September 25, 1996) through July 31, 1997
- -----------------------------------------------------------------
<TABLE>
<CAPTION>
For The Year For The Period
Ended July 31, Since Inception
1998 (September 25, 1996)
Through July 31, 1997
------------------------------------------

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 522,753 $ 67,530
Net realized gain (loss) on investment and futures transactions (68,145) 19,246
Net unrealized appreciation (depreciation) on investments and futures (30,903) 140,091
-----------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 423,705 $ 226,867
-----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.60 and $.50 per share,
respectively) $ (522,753) $ (67,530)
Distributions from net realized gain on investment transactions
($.02 and $.00 per share, respectively) (19,246) 0
----------------------------------------
Total Dividends and Distributions $ (541,999) $ (67,530)
----------------------------------------

CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 8,032,955 $ 6,448,490
Proceeds from reinvested dividends 294,779 23,486
Cost of shares redeemed (3,464,879) (40,638)
----------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 4,862,855 $ 6,431,338
-----------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ 4,744,561 $ 6,590,675

NET ASSETS, BEGINNING OF PERIOD 6,590,675 0
----------------------------------------
NET ASSETS, END OF PERIOD $11,335,236 $ 6,590,675
========================================
</TABLE>
The accompanying notes are an integral part of these financial statements.

Notes to Financial Statements July 31, 1998

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 five 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

Investment security valuation - Securities for which quotations are not
readily available (which will constitute a majority of the securities held
by the Fund) are valued using a matrix system at fair value as determined
by Ranson Capital Corporation, ("Ranson"). The matrix system has been
developed based on procedures approved by the Board of Trustees which include
consideration of the following: yields or prices of municipal bonds of
comparable quality, type of issue, coupon, maturity and rating, indications
as to value from dealers and general market conditions. Because the market
value of securities can only be established by agreement between parties in a
sales transaction, and because of the uncertainty inherent in the valuation
process, the fair values as determined may differ from the values that would
have been used had a ready market for the securities existed. 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.

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 beginning May 10, 1997. Accumulated amortization at July
31, 1998 totaled $6,048 leaving an unamortized balance of $20,502.

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,
1998, a net capital loss carryforward totaling $68,145, which may be used to
offset capital gains realized during subsequent years through July 31, 2006.

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.

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.

Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Schedule of
Investments. The Statement of Assets and Liabilities reflects a receivable
or payable for the daily mark to market for variation margin.

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.

At July 31, 1998, the Fund had outstanding futures contracts to sell debt
securities as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Contracts to Sell Expiration Number Valuation as Unrealized
Date Of Futures of July 31, 1998 appreciation/depreciation
- -----------------------------------------------------------------------------------------------
U.S. Treasury Notes 12/98 10 $ 20,938 $ 1,396

</TABLE>
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, 1998, there were unlimited shares of no par authorized; on July
31, 1998 and July 31, 1997 there were 970,625 and 555,618 shares were
outstanding, respectively.
Transactions in capital shares were as follows:

Shares
-------
For The For the Period Since
Year Ended Inception (Sept. 25, 1996)
July 31, 1998 Through July 31, 1997
-------------------------------------------------
Shares sold 684,086 557,078
Shares issued on
reinvestment of dividends 25,084 2,039
Shares redeemed (294,163) (3,499)
-------------------------------------------------
Net increase (decrease) 415,007 555,618
=================================================

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 $3,899 of investment
advisory fees after partial waver for the year ended July 31, 1998. Certain
officers and trustees of the Fund are also officers and directors of the
investment adviser.

The Fund pays an annual service fee to Ranson Capital Corporation (Ranson),
its principal underwriter, in connection with the distribution of the Fund's
shares. The annual fee paid to Ranson under the Plan is calculated daily and
paid monthly by the Fund at the annual rate of 0.25% of the average daily net
assets of the Fund. Ranson has elected to waive all operation service fees
for the year ended July 31, 1998. In addition, the Fund has engaged ND
Capital, Inc. as agent for the purchase of certain investment securities. For
the year ended July 31, 1998 commissions earned by ND Capital, Inc. totaled
$9,056 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. ND Holdings, Inc. has assumed all transfer agent fees for the
year ended July 31, 1998. 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 $29,198 of accounting service fees for the year ended July 31, 1998.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $10,286,348 and $5,412,501
respectively, for the year ended July 31, 1998.

Note 6. INVESTMENT IN SECURITIES

At July 31, 1998, the aggregate cost of securities for federal income tax
purposes was $11,469,187, and the net unrealized appreciation of investments
based on the cost was $107,792, which is comprised of $144,469 aggregate gross
unrealized appreciation and $36,677 aggregate gross unrealized depreciation.

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

For the Year For The Period Since
Ended July 31, Inception (Sept. 25,
1998 1996) Through July 31,
1997
---------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.86 $ 11.49
--------------------------------------------
Income from Investment Operations:
Net Investment Income $ .60 $ .50
Net realized and unrealized gain
(loss) on investment and futures
transactions (.16) .37
--------------------------------------------
Total From Investment Operations $ .44 $ .87
--------------------------------------------

Less Distributions:
Dividends from net investment income $ (.60) $ (.50)
Distributions from net capital gains (.02) .00
--------------------------------------------
Total Distributions $ (.62) $ (.50)
--------------------------------------------

NET ASSET VALUE, END OF PERIOD $ 11.68 $ 11.86
============================================
Total Return 3.81%(A) 7.79%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 11,335 $ 6,591
Ratio of net expenses (after expense
assumption) to average net assets 0.20%(C) 0.11%(C)
Ratio of net investment income to
average net assets 5.08% 3.70%
Portfolio turnover rate 53.32% 63.70%

</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) Ratio was annualized.
(C) During the year ended July 31, 1998 and the period ended July 31, 1997,
ND Holdings, Inc. or Ranson Capital Corporation assumed expenses of
$53,180, and $34,609, respectively. If the expenses had not been
assumed, the annualized ratio of total expenses to average net assets
would have been 0.71% and 2.01%, respectively.

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

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 Portfolio), including the schedule of investments, as of July 31,
1998, the related statement of operations for the year ended July 31, 1998,
the statement of changes in net assets, and the financial highlights for the
year ended July 31, 1998 and forthe period from inception (September 25, 1996)
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, 1998, 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 Portfolio, as of July 31, 1998,
the results of its operations for the year ended July 31, 1998, the changes in
its net assets, and the financial highlights for the year ended July 31,
1998 and the period from inception (September 25, 1996) through July 31, 1997,
in conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 04, 1998

Tax Information For The Year Ended July 31, 1998 (Unaudited)

<TABLE>
<CAPTION>
Dividends and Distributions Per Share
-----------------------------------------------------
To Shareholders Payment From Net From Net From Net
of Record Date Investment Realized Realized
Income Short-Term Gains Long-Term Gains
-----------------------------------------------------
<S> <C> <C> <C> <C>
August 28, 1997 August 29, 1997 $0.049 - -
September 29, 1997 September 30, 1997 0.052 - -
October 30, 1997 October 31, 1997 0.050 - -
November 27, 1997 November 28, 1997 0.047 - -
December 30, 1997 December 31, 1997 0.053 $0.020 -
January 29, 1998 January 30, 1998 0.050 - -
February 26, 1998 February 27, 1998 0.045 - -
March 30, 1998 March 31, 1998 0.054 - -
April 29, 1998 April 30, 1998 0.050 - -
May 28, 1998 May 29, 1998 0.047 - -
June 29, 1998 June 30, 1998 0.051 - -
July 30, 1998 July 31, 1998 0.048 - -

</TABLE>
Shareholders should consult their tax advisors.

- -----------------------------------------------------------------------------

The Illinois Municipal Fund
- -----------------------------------

Financial Statements July 31,1998

Statement of Assets and Liabilities July 31, 1998
- --------------------------------------------------
<TABLE>
<CAPTION>

Assets
<S> <C>
Cash $ 1,847
Receivable from manager 3,145
Deferred organization costs 35,750
----------
Total Assets $ 40,742
----------
Liabilities
Organizational costs payable $ 35,750
Other Payables 4,013
----------
Total Liabilities $ 39,763
----------
Net Assets $ 979
==========
Net assets are represented by:
Paid-in capital $ 4,383
Accumulated undistributed net realized
gain(loss) on investments (3,404)
----------
Total amount representing net
assets applicable to88.183
outstanding shares of no par common
stock (unlimited shares authorized) $ 979
==========
Net asset value per share $ 11.10
==========
The accompanying notes are an integral part of these financial statements.

Statement of Operations for the period since inception (October 11, 1997)
through July 31, 1998
- ---------------------------------------------------------------------------

INVESTMENT INCOME
Interest $ 3,184
Dividends 123
------------
Total Investment Income $ 3,307
------------
EXPENSES
Investment advisory fees $ 418
Distribution fees (12b-1) 210
Custodian fees 13
Trustees fees 877
Transfer agent fees 137
Transfer agent out-of-pocket 10
Accounting service fees 20,048
Reports to shareholders 100
Professional fees 3,092
Registration & filing fees 1,683
------------
Total Expenses $ 26,588
Less expenses waived or absorbed
by the Fund's manager (26,588)
------------
Total Net Expenses $ 0
------------
NET INVESTMENT INCOME $ 3,307
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on
investment transactions $ (3,404)
------------
Net Realized And Unrealized
Gain (Loss) On Investments $ (3,404)
------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (97)
============
</TABLE>

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

Financial Statements July 31,1998
Statement of Changes in Net Assets
For the period since inception (October 11, 1997) through July 31, 1998
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
For The Period
Since Inception
(October 11,
1997) Through
July 31, 1998
----------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C>
Net investment income $ 3,307
Net realized gain (loss) on investment transactions (3,404)
Net unrealized appreciation (depreciation) on investments 0
-----------
Net Increase (Decrease) in Net
Assets Resulting From Operations $ (97)
-----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income $ (3,307)
Distributions from net realized gain on
investment transactions 0
-----------
Total Dividends and Distributions $ (3,307)
----------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 138,297
Proceeds from reinvested dividends 229
Cost of shares redeemed (134,143)
-----------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 4,383
-----------
TOTAL INCREASE IN NET ASSETS $ 979

NET ASSETS, BEGINNING OF PERIOD 0
-----------
NET ASSETS, END OF PERIOD $ 979
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.

Notes to Financial Statements July 31,1998

Note 1. ORGANIZATION

Business Operations - The Illinois 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 five 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
October 11, 1997, other than matters relating to organization and registration.
On October 11, 1997, 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 federal income tax and, to the
extent indicated, Illinois income tax as is consistent with preservation
of capital. The Fund will seek to achieve this objective by investing
primarily in a portfolio of Illinois municipal securities. Shares of the
Fund are offered at net asset value plus a maximum sales charge of 4.25%
of the offering price.

As of May 1, 1998 the Fund ceased offering shares to the public. All shares
were redeemed except for 88.183 shares currently held by ND Holdings, the
Fund's sponsor. At the time of this report, the future of the Fund's
operations has not been determined.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investment security valuation - Securities for which quotations are not
readily available (which will constitute a majority of the securities held
by the Fund) are valued using a matrix system at fair value as
determined by Ranson Capital Corporation, ("Ranson"). The matrix system has
been developed based on procedures approved by the Board of Trustees which
include consideration of the following: yields or prices of municipal bonds
of comparable quality, type of issue, coupon, maturity and rating,
indications as to value from dealers and general market conditions. Because
the market value of securities can only be established by agreement between
parties in a sales transaction, and because of the uncertainty inherent in
the valuation process, the fair values as determined may differ from the
values that would have been used had a ready market for the securities
existed. 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.

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. As of July 31, 1998 no organizational costs have been amortized leaving
an unamortized balance of $35,750

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, 1998, a net capital loss carryforward totaling $3,404,
which may be used to offset capital gains realized during subsequent years
through July 31, 2006.

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.

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.

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, 1998, there were unlimited shares of no par authorized; 88
shares were outstanding.
Transactions in capital shares were as follows:

Shares
----------------------------
For the Period Since
Inception (October 11, 1997)
Through July 31, 1998
----------------------------
Shares issued on reinvestment
of dividends 19
Shares redeemed (11,807)
-----------------------------
Net increase 88
=============================
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. Capital has elected to waive all Investment
advisory fees for the period ended July 31, 1998. Certain officers and
trustees of the Fund are also officers and directors of the investment adviser.

The Fund pays an annual service fee to Ranson Capital Corporation (Ranson),
its principal underwriter, in connection with the distribution of the Fund's
shares. The annual fee paid to Ranson is calculated daily and paid monthly
by the Fund at the annual rate of 0.25% of the average daily net assets of
the Fund. Capital has elected to waive all service fees for the period ended
July 31, 1998. In addition, the Fund has engaged ND Capital, Inc. as
agent for the purchase of certain investment securities.

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, 1998.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $146,331 and $142,798
respectively, for the period ended July 31, 1998.

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

For The Period
Since Inception
(October 11, 1997)
Through July 31, 1998
----------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.49
------------
Income from Investment Operations:
Net Investment Income $ .29
Net realized and unrealized gain
(loss) on investments (.39)
------------
Total From Investment Operations $ (.10)
------------
Less Distributions:
Dividends from net investment income $ (.29)
Distributions from net capital gains .00
------------
Total Distributions $ (.29)
------------
NET ASSET VALUE, END OF PERIOD $ 11.10
============
Total Return (.52)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1
Ratio of net expenses (after expense assumption)
to average net assets 0.00%(B)(C)
Ratio of net investment income to average net assets 4.18%(B)
Portfolio turnover rate 261.63%
</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 $26,588.
If the expenses had not been assumed, the
annualized ratio of total expenses to average
net assets would have been 33.60%.

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

INDEPENDENT AUDITOR'S REPORT

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

We have audited the accompanying statement of assets and liabilities of The
Illinois Municipal Fund, (one of the portfolio's constituting the
Ranson Managed Portfolio), including the schedule of investments, , the
related statement of operations, the statement of changes in net assets,
and the financial highlights for the period from inception (October 11,
1997) through July 31, 1998. 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, 1998, 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 Portfolio, as of
July 31, 1998, the results of its operations, the changes in its net assets,
and the financial highlights for the period from inception (October 11, 1997)
through July 31, 1998, in conformity with generally accepted accounting
principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 04, 1998

Tax Information For The Year Ended July 31, 1998 (Unaudited)

<TABLE>
<CAPTION>
Dividends and Distributions Per Share
-------------------------------------

From Net From Net From Net
To Shareholders Payment Investment Realized Realized
of Record Date Income Short-Term Gains Long-Term Gains
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 28, 1997 August 29, 1997 - - -
September 29, 1997 September 30, 1997 - - -
October 30, 1997 October 31, 1997 - - -
November 27, 1997 November 28, 1997 - - -
December 30, 1997 December 31, 1997 $0.052 - -
January 29, 1998 January 30, 1998 0.048 - -
February 26, 1998 February 27, 1998 0.046 - -
March 30, 1998 March 31, 1998 0.056 - -
April 29, 1998 April 30, 1998 0.047 - -
May 28, 1998 May 29, 1998 0.038 - -
June 29, 1998 June 30, 1998 0.001 - -
July 30, 1998 July 31, 1998 - - -

</TABLE>
Shareholders should consult their tax advisors.

<ARTICLE> 6
<SERIES>
<NUMBER> 01
<NAME> THE KANSAS MUNICIPAL FUND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 112528588
<INVESTMENTS-AT-VALUE> 118382193
<RECEIVABLES> 2069736
<ASSETS-OTHER> 209375
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 120661304
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 637569
<TOTAL-LIABILITIES> 637569
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 120108166
<SHARES-COMMON-STOCK> 9875312
<SHARES-COMMON-PRIOR> 10071898
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5954996)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5867565
<NET-ASSETS> 120023735
<DIVIDEND-INCOME> 44353
<INTEREST-INCOME> 7227124
<OTHER-INCOME> 0
<EXPENSES-NET> (1176336)
<NET-INVESTMENT-INCOME> 6095141
<REALIZED-GAINS-CURRENT> (1671434)
<APPREC-INCREASE-CURRENT> (1066095)
<NET-CHANGE-FROM-OPS> 3357612
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6095141)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 706375
<NUMBER-OF-SHARES-REDEEMED> (1497432)
<SHARES-REINVESTED> 344664
<NET-CHANGE-IN-ASSETS> (81777197)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 619124
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1180237
<AVERAGE-NET-ASSETS> 123698634
<PER-SHARE-NAV-BEGIN> 12.42
<PER-SHARE-NII> .60
<PER-SHARE-GAIN-APPREC> (.27)
<PER-SHARE-DIVIDEND> (.60)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.15
<EXPENSE-RATIO> .95<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> 02
<NAME> THE KANSAS INSURED INTERMEDIATE FUND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 19527501
<INVESTMENTS-AT-VALUE> 20269595
<RECEIVABLES> 376342
<ASSETS-OTHER> 31406
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 20677343
<PAYABLE-FOR-SECURITIES> 76669
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15833
<TOTAL-LIABILITIES> 92502
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20683568
<SHARES-COMMON-STOCK> 1705829
<SHARES-COMMON-PRIOR> 1865962
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (842915)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 744188
<NET-ASSETS> 20584841
<DIVIDEND-INCOME> 24721
<INTEREST-INCOME> 1138009
<OTHER-INCOME> 0
<EXPENSES-NET> (179,276)
<NET-INVESTMENT-INCOME> 993262
<REALIZED-GAINS-CURRENT> (125540)
<APPREC-INCREASE-CURRENT> (212731)
<NET-CHANGE-FROM-OPS> 654991
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (993,262)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 61738
<NUMBER-OF-SHARES-REDEEMED> 492742
<SHARES-REINVESTED> 49895
<NET-CHANGE-IN-ASSETS> (4948577)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 111945
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 179276
<AVERAGE-NET-ASSETS> 22455359
<PER-SHARE-NAV-BEGIN> 12.23
<PER-SHARE-NII> .54
<PER-SHARE-GAIN-APPREC> (.16)
<PER-SHARE-DIVIDEND> (.54)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.07
<EXPENSE-RATIO> .75<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> 03
<NAME> THE NEBRASKA MUNICIPAL FUND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 24960855
<INVESTMENTS-AT-VALUE> 26111667
<RECEIVABLES> 394056
<ASSETS-OTHER> 43743
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 26549466
<PAYABLE-FOR-SECURITIES> 102550
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 128538
<TOTAL-LIABILITIES> 231088
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 26677203
<SHARES-COMMON-STOCK> 2365171
<SHARES-COMMON-PRIOR> 2468032
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1512439)<F1>
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1153604
<NET-ASSETS> 26318378
<DIVIDEND-INCOME> 15665
<INTEREST-INCOME> 1535604
<OTHER-INCOME> 0
<EXPENSES-NET> (171038)
<NET-INVESTMENT-INCOME> 1380231
<REALIZED-GAINS-CURRENT> (383905)
<APPREC-INCREASE-CURRENT> 49878
<NET-CHANGE-FROM-OPS> 1046204
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1380231)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 251824
<NUMBER-OF-SHARES-REDEEMED> 436786
<SHARES-REINVESTED> 82101
<NET-CHANGE-IN-ASSETS> (1483176)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 136742
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 222271
<AVERAGE-NET-ASSETS> 27288794
<PER-SHARE-NAV-BEGIN> 11.26
<PER-SHARE-NII> .56
<PER-SHARE-GAIN-APPREC> (.13)
<PER-SHARE-DIVIDEND> (.56)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.13
<EXPENSE-RATIO> .63<F2>
<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>Ratio of net expenses to average net assets.
</FN>

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 04
<NAME> THE OKLAHOMA MUNCIPAL FUND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 11469187
<INVESTMENTS-AT-VALUE> 11576979
<RECEIVABLES> 169872
<ASSETS-OTHER> 41440
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11788291
<PAYABLE-FOR-SECURITIES> 397231
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55824
<TOTAL-LIABILITIES> 453055
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11294193
<SHARES-COMMON-STOCK> 970625
<SHARES-COMMON-PRIOR> 555618
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (68145)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 109188
<NET-ASSETS> 11335236
<DIVIDEND-INCOME> 13949
<INTEREST-INCOME> 528875
<OTHER-INCOME> 0
<EXPENSES-NET> (20071)
<NET-INVESTMENT-INCOME> 522753
<REALIZED-GAINS-CURRENT> (68145)
<APPREC-INCREASE-CURRENT> (30903)
<NET-CHANGE-FROM-OPS> 423705
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (522753)
<DISTRIBUTIONS-OF-GAINS> (19246)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 684086
<NUMBER-OF-SHARES-REDEEMED> 294163
<SHARES-REINVESTED> 25084
<NET-CHANGE-IN-ASSETS> 4744561
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 50944
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 73251
<AVERAGE-NET-ASSETS> 10286302
<PER-SHARE-NAV-BEGIN> 11.86
<PER-SHARE-NII> .60
<PER-SHARE-GAIN-APPREC> (.16)
<PER-SHARE-DIVIDEND> (.60)
<PER-SHARE-DISTRIBUTIONS> (.02)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.68
<EXPENSE-RATIO> .20<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> 05
<NAME> THE ILLINOIS MUNICIPAL FUND

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> JUL-31-1998
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 1847
<RECEIVABLES> 3145
<ASSETS-OTHER> 35750
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 40742
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 39763
<TOTAL-LIABILITIES> 39763
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4383
<SHARES-COMMON-STOCK> 88
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3404)
<NET-ASSETS> 979
<DIVIDEND-INCOME> 123
<INTEREST-INCOME> 3184
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 3307
<REALIZED-GAINS-CURRENT> (3404)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3307)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11876
<NUMBER-OF-SHARES-REDEEMED> 11807
<SHARES-REINVESTED> 19
<NET-CHANGE-IN-ASSETS> 979
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 418
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26588
<AVERAGE-NET-ASSETS> 79141
<PER-SHARE-NAV-BEGIN> 11.49
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> (.39)
<PER-SHARE-DIVIDEND> (.29)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.10
<EXPENSE-RATIO> 0<F1>
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Ratio of net expenses to average net assets, annualized.
</FN>

</TABLE>