RANSON MANAGED PORTFOLIOS, N-30D, 1999-09-20

RANSON MANAGED PORTFOLIOS
N-30D, 1999-09-20

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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 30, 1999. The Fund's portfolio
and related financial statements are presented within for your review.

As we end the first half of 1999, stabilizing global economies and the
U.S. economy growing at what many economists believe is an unsustainable
pace has lead the Federal Reserve to raise short-term interest rates a
quarter of a percentage point. Strong consumer spending and a tight labor
market were the primary factors for Mr. Greenspan's pre-emptive strike
against a rise in inflation. Typically, a higher fed funds rate - the rate
at which banks borrow from each other overnight - means higher rates for
things such as mortgage loans, credit cards and savings accounts.

Anticipations of a Federal Reserve tightening have seen yields on the
benchmark 30-year Treasury bond rise from a January yield of 5.07% to 6.10%.

Tax-free municipal yields have also risen from 5.06% to 5.41% on AAA rated
bonds. This slower rise compared to Treasuries can be attributed to investor
demand for tax-free bonds.

The Kansas Municipal Fund began the year at $12.15 and closed the year at
$11.98. In anticipation of stronger economic growth, the Kansas Municipal
Fund at times during the period utilized a defensive position in U.S. Treasury
futures. Share price was tempered as yields on U.S. Treasuries declined in the
latter part of 1998 and stabilized as yields on U.S. Treasuries rose
throughout the first half of 1999. Stability of share price is the primary
objective of a defensive position.

The Fund continues to invest in high-grade Kansas double exempt bonds.
Diversification remains an important strategy for the Fund. Purchases
throughout the year in the primary and secondary markets include Newton
Healthcare, Sedgwick County School District #267, and Wyandotte County
International Speedway.

The investment objective of the Fund is to provide a high level of current
income exempt from both federal and 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.

Coupon Rate or Face Rate
The rate of interest payable annually, 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 43.8
AA 13.9
A 21.9
BBB 8.1
NR 12.3

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 adviser.

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

H-Housing 37.0
HC-Health Care 25.9
U-Utilities 14.9
GO-General Obligation 7.1
S-School 4.1
I-Industrial 3.1
O-Other 2.7
W/S-Water/Sewer 2.7
T-Transportation 2.5

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.
These percentages are subject to change.

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 Kansas Municipal Lehman Brothers
Fund 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 $10,724
1992 $11,855 $11,351 $12,199
1993 $13,050 $12,495 $13,276
1994 $13,168 $12,609 $13,525
1995 $13,988 $13,394 $14,591
1996 $14,814 $14,184 $15,553
1997 $15,933 $15,256 $17,150
1998 $16,372 $15,676 $18,177
1999 $16,936 $16,216 $18,700

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

For periods ending July 30, 1999
--------------------------------
Since Inception
1 year 5 year (November 15, 1990)
- ----------------------------------------------------------------------------
Without sales charge 3.44% 5.16% 6.24%
With sales charge (4.25%) (.95)% 4.25% 5.71%
- ----------------------------------------------------------------------------

Putting Performance into Perspective
Returns are historical and are not a guarantee of future results. 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.
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
- --------------

07-31-98 NAV(share value) $12.15
07-30-99 NAV $11.98
Average Maturity 20.7 years
Number of Issues 81
Total Net Assets $115,882,087

Schedule of Investments July 30, 1999
- --------------------------------------

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

*Burlington, KS (Gas & Elec.) Rev. Ref. MBIA Aaa/AAA 7.000% 06/01/31 $ 4,000,000 $ 4,270,720
Cowley Cty., KS Community College C.O.P.'s A/NR 7.000 03/01/12 900,000 934,857
Douglas Cty., KS USD #497 (Lawrence) G.O. Aa-3/NR 6.000 09/01/15 1,000,000 1,074,680
Ford Cty., KS Single Family Mrtge. Rev. Ref. A-1/NR 7.900 08/01/10 335,000 357,462
Gardner, KS Elec. Util. Rev. NR/NR 7.000 11/01/09 1,000,000 1,056,810
Garnett, KS (Garnett Hsg. Auth. Project) Rev. NR/NR 5.900 10/01/18 500,000 497,580
Goddard, KS (IFR Syst., Inc.) Indl. Rev. Ref. & Impvt. NR/NR 6.250 05/01/12 500,000 519,500
Hiawatha, KS (WalMart Stores) Indl. Rev. Ref. NR/AA 6.750 01/01/06 490,000 502,603
Hutchinson, KS Single Family Mrtge. Rev. Ref. A/NR 8.875 12/01/12 1,625,000 1,730,771
Johnson Cty., KS Internal Impvt. & Ref. Aa-1/NR 6.125 09/01/12 1,040,000 1,092,104
Johnson Cty., KS Internal Impvt. & Ref. Aa-1/NR 6.125 09/01/12 1,370,000 1,438,637
Johnson Cty., KS Single Family Mrtge. Rev. A/NR 7.100 05/01/12 675,000 721,899
Johnson Cty., KS Water Dist. #1 Rev. Aa-1/AA+ 6.500 12/01/13 500,000 520,620
Johnson Cty., KS Water Dist. #1 Rev. Aa-1/AA+ 6.250 12/01/11 700,000 733,677
Kansas City, KS GNMA Mrtge. Rev. GNMA Aaa/NR 5.900 11/01/27 1,560,000 1,599,952
*Kansas City, KS Util. Syst. Ref. & Impvt. AMBAC Aaa/AAA 6.300 09/01/16 1,415,000 1,501,244
*Kansas City, KS Util. Syst. Ref. & Impvt. AMBAC Aaa/AAA 6.300 09/01/16 585,000 620,656
*Kansas City, KS Util. Syst. Ref. & Impvt. FGIC Aaa/AAA 6.375 09/01/23 2,525,000 2,806,689
*Kansas City, KS Util. Syst. Ref. & Impvt. FGIC Aaa/AAA 6.375 09/01/23 5,225,000 5,807,901
Kansas City\Leavenworth Cty.\Lenexa, KS Mrtge. Rev. NR/AAA 7.850 11/01/10 450,000 460,751
KS Water Finance Auth. (Public Water Supply Dist. #6) Rev. NR/NR 6.000 05/01/17 255,000 261,571
KS Department of Transportation Highway Rev. Aa/AA+ 6.000 09/01/12 2,200,000 2,368,542
KS Devl. Finance Auth. (Board of Regents) AMBAC Aaa/AAA 5.875 06/01/21 750,000 770,543
KS Devl. Finance Auth. Water Fund Rev. Aa-1/AA+ 6.000 11/01/14 500,000 545,560
#KS Devl. Finance Auth. (Martin Creek Place) Rev. FHA Aa/NR 6.600 08/01/34 1,900,000 1,963,669
KS Devl. Finance Auth. (Martin Creek Place) Rev. FHA Aa/NR 6.500 08/01/24 750,000 775,650
KS Devl. Finance Auth. (Lewis Field Stadium) Rev. NR/NR 6.000 04/01/08 500,000 513,765
KS Devl. Finance Auth. (Sec. 8) Rev. Ref. MBIA Aaa/AAA 6.400 01/01/24 770,000 798,736
KS Devl. Finance Auth. (Highway Patrol Training Facs.) NR/NR 6.300 12/01/05 450,000 469,512
KS Devl. Finance Auth. Multifamily Hsg. Rev. NR/AAA 6.000 12/01/21 1,975,000 2,053,151
KS Devl. Finance Auth. (Oak Ridge Park Apt.) NR/NR 6.500 02/01/18 2,065,000 2,146,485
KS Devl. Finance Auth. (Oak Ridge Park Apt.) NR/NR 6.625 08/01/29 1,875,000 1,959,262
KS Devl. Finance Auth. (Indian Ridge Apts.) NR/NR 6.000 01/01/28 1,140,000 1,132,727
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. Aaa/AAA 5.800 11/15/21 430,000 440,587
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. Aaa/AAA 5.800 11/15/16 550,000 580,448
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care Rev. Aaa/AAA 5.800 11/15/21 680,000 703,786
KS Devl. Finance Auth. (Hays Medl. Ctr. Inc.) Facs. Rev. Aaa/AAA 5.500 11/15/17 500,000 500,835
KS Devl. Finance Auth. (Jackson Co.) Hlth. Rev. Aa-3/NR 5.375 09/01/27 1,000,000 981,600
Lawrence, KS (Memorial Hospital) Rev. A-3/NR 6.000 07/01/09 2,000,000 2,127,620
Lawrence, KS (Memorial Hospital) Rev. A-3/NR 6.200 07/01/14 1,200,000 1,266,564
Lawrence, KS (Memorial Hospital) Rev. A-3/NR 6.200 07/01/19 1,725,000 1,783,667
Lawrence, KS (Brandon Woods) Multifamily Hsg. Devl. NR/A 6.625 04/01/12 2,000,000 2,057,060
Leavenworth Cty., KS (Lansing) USD #469 G.O. FSA Aaa/AAA 5.750 09/01/14 875,000 948,316
Leavenworth Cty., KS (Lansing) USD #469 G.O. FSA Aaa/AAA 5.750 09/01/15 930,000 1,009,180
Lenexa, KS (Lakeview Village) Hlth. Care Facs. Rev. NR/BBB 6.250 05/15/26 8,000,000 8,184,960
*Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. NR/AA 6.450 02/01/18 2,500,000 2,607,525
Lyon Cty., KS Unlimited Tax G.O. AMBAC Aaa/NR 5.125 09/01/16 1,120,000 1,086,097
Newton, KS (Newton Healthcare) Hosp. Rev. NR/BBB 5.700 11/15/18 1,000,000 991,960
Newton, KS (Newton Healthcare) Hosp. Rev. NR/A 5.750 11/15/24 500,000 501,225
Olathe, KS Hlth. Care Ref. (Luth. Gd. Sam.) AMBAC Aaa/AAA 6.000 05/01/19 900,000 941,481
Olathe, KS Hlth. Care Ref. (Luth. Gd. Sam.) AMBAC Aaa/AAA 6.000 09/01/11 1,000,000 1,004,810
Olathe, KS Hlth. Care Ref. (Luth. Gd. Sam.) AMBAC Aaa/AAA 5.875 09/01/16 2,000,000 2,021,460
Olathe, KS (Jefferson Place) Multifamily Hsg. Rev. Ref. NR/A- 5.950 07/01/22 5,060,000 5,168,031
Olathe, KS (Jefferson Place) Multifamily Hsg. Rev. Ref. NR/A- 6.100 07/01/22 785,000 805,512
Olathe, KS (Bristol Pointe) Multifamily Hsg. Rev. Ref. NR/AAA 5.700 11/01/27 2,210,000 2,229,824
Pratt, KS Elec. Util. Syst. Rev. Ref. & Impvt. AMBAC Aaa/AAA 6.600 11/01/07 1,000,000 1,145,370
Riley Cty., KS (Colbert Hills Golf Project) NR/NR 5.550 05/01/23 2,590,000 2,516,107
Sedgwick Cty., KS USD #267 (Renwick) G.O. AMBAC Aaa/AAA 5.000 11/01/19 1,000,000 954,080
Seward Cty., KS G.O. AMBAC Aaa/AAA 6.000 08/15/13 750,000 777,923
Seward Cty., KS Single Family Mrtge. Rev. Ref. Aa-1/NR 8.000 05/01/11 255,000 269,981
Shawnee Cty., KS (Auburn-Washburn) USD #437 G.O. Ref. Aaa/AAA 6.600 09/01/09 500,000 532,000
Shawnee, KS Int. Impvt. G.O. Aa-3/NR 5.850 12/01/06 235,000 244,978
Shawnee, KS (Thomasbrooks Apts.) Multifamily Hsg Rev. NR/AAA 5.250 10/01/14 830,000 824,530
Shawnee, KS (Thomasbrooks Apts.) Multifamily Hsg Rev. NR/AAA 5.500 04/01/24 3,200,000 3,163,424
Wichita, KS Airport Auth. Facs. Rev. Ref. ASGUA NR/AA 7.000 03/01/05 440,000 477,101
Wichita, KS Hlth. Care (Masonic Home) Rev. NR/NR 6.375 12/01/22 1,275,000 1,256,334
Wichita, KS (St. Francis) Facs. Impvt. & Ref. MBIA Aaa/AAA 6.250 10/01/10 1,000,000 1,075,360
Wichita, KS Multifamily Hsg. (Northpark II-A) Rev. GNMA Aaa/NR 6.125 08/20/28 1,900,000 1,945,049
Wichita, KS Multifamily Hsg. (Brentwood Apts.) Rev. NR/A 5.850 12/01/25 1,000,000 1,014,820
Wichita, KS (Broadmoor Chelsea) Multifamily Hsg. Rev. NR/AAA 5.650 07/01/16 990,000 1,011,255
#Wichita, KS (Broadmoor Chelsea) Multifamily Hsg. Rev. NR/AAA 5.700 07/01/22 2,000,000 2,033,240
Wichita, KS Multifamily Hsg. (Cimarron Apts.) FNMA Aa/AAA 5.550 10/01/22 1,000,000 1,002,870
Wichita, KS Multifamily Hsg. Rev. (Innes Station Apt. 5) NR/NR 6.250 03/01/28 1,750,000 1,734,163
Wichita, KS Public Building Commission Rev. Aaa/AAA 5.750 02/01/17 350,000 354,337
Wichita, KS Public Building Commission Rev. A/AA- 5.500 08/01/14 715,000 728,170
Wichita, KS (CSJ Hlth. Sys.) Rev. NR/A+ 7.000 11/15/08 640,000 684,883
Wichita, KS (CSJ Hlth. Sys.) Rev. NR/A+ 7.200 10/01/15 2,225,000 2,481,253
Wichita, KS (CSJ Hlth. Sys.) Rev. NR/A+ 7.000 11/15/18 2,350,000 2,509,612
Wichita, KS Single Family Mrtge. Rev. Ref. A/NR 7.100 09/01/09 745,000 788,471
Wichita, KS Water & Sewer Util. Ref. & Impvt. FGIC Aaa/AAA 6.000 10/01/12 1,000,000 1,034,590
Wyandotte Cty., KS (KS Int'l. Speedway) Sales Tax Rev. Aaa/AAA 5.000 12/01/27 1,500,000 1,416,195
-------------
KANSAS MUNICIPAL BONDS (COST: $110,543,262) $ 113,926,930
-------------
SHORT-TERM SECURITIES (.5%)
Federated Tax-Free Fund 73 $ 381,554
Federated Intermediate Municipal Trust 78 200,194
-------------
TOTAL SHORT-TERM SECURITIES (COST: $581,554) $ 581,748
-------------
TOTAL INVESTMENTS IN SECURITIES (COST: $111,124,816) $ 114,508,678
OTHER ASSETS LESS LIABILITIES 1,373,409
-------------
NET ASSETS $ 115,882,087
=============

</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 30, 1999

Statement of Assets and Liabilities July 30, 1999
- --------------------------------------------------
<TABLE>
<CAPTION>
Assets
<S> <C>
Investment in securities, at value (cost: $111,124,816 ) $ 114,508,678
Accrued dividends receivable 2,746
Accrued interest receivable 1,985,956
Receivable for fund shares sold 1,744
---------------
Total Assets $ 116,499,124
---------------
Liabilities
Dividends payable $ 471,598
Accrued expenses 103,873
Payable for fund shares redeemed 20,801
Bank overdraft 20,765
---------------
Total Liabilities $ 617,037
---------------

Net Assets $ 115,882,087
===============

Net assets are represented by:
Paid-in capital $ 117,675,469
Accumulated undistributed net realized gain (loss) on investments (5,177,244)
Unrealized appreciation on investments 3,383,862
---------------
Total amount representing net assets applicable to
9,675,452 outstanding shares of no par common
stock (unlimited shares authorized) $ 115,882,087
===============
Net asset value per share $ 11.98
===============

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

Statement of Operations For the year ended July 30, 1999
- ----------------------------------------------------------

INVESTMENT INCOME
Interest $ 6,755,336
Dividends 52,564
---------------
Total Investment Income $ 6,807,900
---------------
EXPENSES
Investment advisory fees $ 592,103
Service fees 296,051
Transfer agent fees 123,302
Accounting service fees 74,511
Custodian fees 17,718
Transfer agent out of pockets 13,610
Professional fees 8,168
Trustees fees 7,002
Insurance expense 8,663
Reports to shareholders 6,906
Registration and filing fees 292
---------------
Total Expenses $ 1,148,326
Less expenses waived or absorbed
by the Fund's manager (23,429)
----------------
Total Net Expenses $ 1,124,897
----------------
NET INVESTMENT INCOME $ 5,683,003
----------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 606,732
Futures transactions 168,020
Net change in unrealized appreciation (depreciation) of :
Investments (2,469,743)
Futures (13,960)
----------------
Net Realized And Unrealized Gain (Loss) On
Investments and Futures $ (1,708,951)
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,974,052
================
</TABLE>

The accompanying notes are an integral part of these financial statements.
Financial Statements July 30, 1999

Statement of Changes in Net Assets
For the year ended July 30, 1999 and the year ended July 31, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>

For The For The
Year Ended Year Ended
July 30, 1999 July 31, 1998
----------------- -----------------

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 5,683,003 $ 6,095,141
Net realized gain (loss) on investment and futures transactions 774,752 (1,671,434)
Net change in unrealized appreciation (depreciation) on
investments and futures (2,483,703) (1,066,095)
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 3,974,052 $ 3,357,612
-------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.58 and $.60 per share,
respectively) $ (5,683,003) $ (6,095,141)
Distributions from net realized gain on investment and
futures transactions 0 0
-------------- --------------
Total Dividends and Distributions $ (5,683,003) $ (6,095,141)
-------------- --------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 7,216,537 $ 8,635,428
Proceeds from reinvested dividends 3,847,350 4,211,696
Cost of shares redeemed (13,496,584) (18,287,314)
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (2,432,697) $ (5,440,190)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ (4,141,648) $ (8,177,719)

NET ASSETS, BEGINNING OF PERIOD 120,023,735 128,201,454
-------------- --------------
NET ASSETS, END OF PERIOD $ 115,882,087 $ 120,023,735
============== ==============

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

Notes to Financial Statements July 30, 1999

Note 1. ORGANIZATION

Business Operations - The Kansas Municipal Fund (the "Fund") is an investment
portfolio of Ranson Managed Portfolios (the "Trust") registered under the
Investment Company Act of 1940, as amended, as a non-diversified, open-end
management investment company. The Trust may offer multiple portfolios;
currently four portfolios are offered. Ranson Managed Portfolios is an
unincorporated business trust organized under Massachusetts law on August 10,
1990. The Fund had no operations from that date to November 15, 1990, other
than matters relating to organization and registration. On November 15, 1990,
the Fund commenced its Public Offering of capital shares. The investment
objective of the Fund is to provide its shareholders with as high a level of
current income exempt from both federal and Kansas income tax as is consistent
with preservation of capital. The Fund will seek to achieve this objective by
investing primarily in a portfolio of Kansas municipal securities. Shares of
the Fund are offered at net asset value plus a maximum sales charge of 4.25% of
the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investment security valuation - 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, and
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 30,
1999, a net capital loss carryforward totaling $5,177,244, which may be
used to offset capital gains realized during subsequent years through July 31,
2007.

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.

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 30, 1999, there were unlimited shares of no par authorized;
9,675,452 and 9,875,312 shares were outstanding at July 30, 1999 and
July 31, 1998, respectively.

Transactions in capital shares were as follows:

Shares
----------------------------------
For The For The
Year Ended Year Ended
July 30, 1999 July 31, 1998
----------------------------------
Shares sold 594,266 706,375
Shares issued on reinvestment of dividends 316,848 344,664
Shares redeemed (1,110,974) (1,497,432)
----------------------------------
Net increase (decrease) (199,860) (446,393)
==================================

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 $592,103 of
investment advisory fees for the year ended July 30, 1999. The Fund has a
payable to Ranson Capital Corporation of $48,425 at July 30, 1999 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, 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 $272,622 of service fee expenses after partial waiver for the
year ended July 30, 1999. The Fund has a payable to Ranson of $22,066 at
July 30, 1999 for service fees. 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. The Fund has recognized $123,302 of transfer agency fees and
expenses for the year ended July 30, 1999. The Fund has a payable to ND
Resources, Inc. of $10,111 at July 30, 1999 for transfer agency fees. 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 $74,511 of
accounting service fees for the year ended July 30, 1999. The Fund has a
payable to ND Resources, Inc. of $6,161 at July 30, 1999 for accounting
service fees.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from sales of investment
securities (excluding short-term securities) aggregated $15,690,485 and
$17,193,448, respectively, for the year ended July 30, 1999.

Note 6. INVESTMENT IN SECURITIES

At July 30, 1999, the aggregate cost of securities for federal income
tax purposes was $111,124,816, and the net unrealized appreciation of
investments based on the cost was $3,383,862, which is comprised of
$3,981,265 aggregate gross unrealized appreciation and $597,403 aggregate
gross unrealized depreciation.

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

For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
July 30, July 31, July 31, July 31, July 31,
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.15 $ 12.42 $ 12.14 $ 12.07 $ 12.00
---------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income $ .58 $ .60 $ .61 $ .69 $ .65
Net realized and unrealized gain (loss)
on investment and futures transactions (.17) (.27) .28 .07 .07
--------------------------------------------------------------------------------
Total Income (Loss) From Investment
Operations $ .41 $ .33 $ .89 $ .76 $ .72
--------------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.58) $ (.60) $ (.61) $ (.69) $ (.65)
Distributions from net capital gains .00 .00 .00 .00 .00
--------------------------------------------------------------------------------
Total Distributions $ (.58) $ (.60) $ (.61) $ (.69) $ (.65)
--------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.98 $ 12.15 $ 12.42 $ 12.14 $ 12.07
================================================================================
Total Return 3.44%(A) 2.76%(A) 7.56%(A) 5.90%(A) 6.23%(A)

RATIOS/SUPPLEMENTAL DATA:

Net assets, end of period (in thousands) $115,882 $120,024 $128,201 $132,349 $130,091
Ratio of net expenses (after expense
assumption) to average net assets 0.95%(B) 0.95%(B) 0.93%(B) 0.85%(B) 0.82%(B)
Ratio of net investment income to
average net assets 4.80% 4.93% 5.02% 5.18% 5.46%
Portfolio turnover rate 13.54% 26.68% 18.64% 20.14% 57.00%

</TABLE>

(A) (Excludes maximum sales charge of 4.25%.
(B) During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed/waived expenses of $23,429, $3,901, $46,741,
$212,056, and $295,875, respectively. If the expenses had not been
assumed/waived, the annualized ratios of total expenses to average
net assets would have been 0.97%, 0.95%, 0.97%, 1.01%, and 1.06%,,
respectively.

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

Tax Information For The Year Ended July 30, 1999 (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:

<TABLE>
<CAPTION>
Dividends and Distributions Per Share
From Net Investment From Net Realized From Net Realized
To Shareholders of Record Payment Date Income Short-Term Gains Long-Term Gains
- ------------------------- --------------- ------------------- ----------------- ------------------
<S> <C> <C> <C> <C>
August 28, 1998 August 31, 1998 $ .049 - -
September 29, 1998 September 30, 1998 .049 - -
October 29, 1998 October 30, 1998 .049 - -
November 27, 1998 November 30, 1998 .049 - -
December 30, 1998 December 31, 1998 .048 - -
January 28, 1999 January 29, 1999 .046 - -
February 25, 1999 February 26, 1999 .044 - -
March 30, 1999 March 31, 1999 .055 - -
April 29, 1999 April 30, 1999 .048 - -
May 27, 1999 May 28, 1999 .045 - -
June 29, 1999 June 30, 1999 .052 - -
July 29, 1999 July 30, 1999 .049 - -
</TABLE>

Shareholders should consult their tax advisors.

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 30,
1999, 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 four 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 the period ended July 31, 1995,
were audited by other auditors whose report dated September 11, 1995,
expressed an unqualified opinion on those financial highlights.

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 30, 1999, 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 30,
1999, 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 four years in the period then ended, in conformity
with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1999

Dear Shareholder:

We are pleased to enclose the annual report of the operations of the Kansas
Insured Intermediate Fund for the year ended July 30, 1999. The Fund's
portfolio and related financial statements are presented within for your
review.

As we end the first half of 1999, stabilizing global economies and the
U.S. economy growing at what many economists believe is an unsustainable
pace has lead the Federal Reserve to raise short-term interest rates a
quarter of a percentage point. Strong consumer spending and a tight labor
market were the primary factors for Mr. Greenspan's pre-emptive strike against
a rise in inflation. Typically, a higher fed funds rate - the rate at
which banks borrow from each other overnight - means higher rates for things
such as mortgage loans, credit cards and savings accounts.

Anticipations of a Federal Reserve tightening have seen yields on the
benchmark 30-year Treasury bond rise from a January yield of 5.07% to
6.10%.

Tax-free municipal yields have also risen from 5.06% to 5.41% on AAA rated
bonds. This slower rise compared to Treasuries can be attributed to investor
demand for tax-free bonds.

The Kansas Insured Intermediate Fund began the year at $12.07 and closed the
year at $11.98. In anticipation of stronger economic growth, the Kansas
Insured Intermediate Fund, at times during the period utilized a defensive
position in U.S. Treasury futures. Share price was tempered as yields on U.S.
Treasuries declined in the latter part of 1998 and stabilized as yields on
U.S. Treasuries rose throughout the first half of 1999. Stability of share
price is the primary objective of a defensive position.

The Fund continues to invest in high-grade Insured Kansas tax-exempt bonds.
Diversification remains an important strategy for the Fund. Purchases
throughout the year in the primary and secondary markets include Harvey
County School District #373, Mission Kansas Multi-Family Housing, and
Wyandotte County International Speedway.

The investment objective of the Fund is to provide a high level of
current income exempt from both federal and 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.

Coupon Rate or Face Rate
The rate of interest payable annually, 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," and "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 100

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

GO-General Obligation 30.0
H-Housing 29.9
HC-Health Care 24.3
W/S-Water/Sewer 7.2
U-Utilities 2.6
O-Other 2.1
T-Transportation 1.5
C/L-COP/Lease 1.2
S-Schools 1.2

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.
These percentages are subject to change.

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

<TABLE>
<CAPTION>
Comparison of change in value of $10,000 investment in
The Kansas Insured Intermediate Fund and the Lehman
Brothers Municipal 7 Year Maturity Bond Index

The Kansas Insured The Kansas Insured
Intermediate Fund Intermediate Fund Lehman Bros. Municipal
w/o sales charge w/ max sales charge 7 Year Maturity Bond Index
----------------------------------------------------------------------------------
<S> <C> <C> <C>
11/23/92 $10,000 $ 9,725 $10,000
1993 $10,829 $10,531 $10,694
1994 $11,025 $10,722 $10,982
1995 $11,656 $11,335 $11,868
1996 $12,326 $11,987 $12,471
1997 $12,912 $12,557 $13,548
1998 $13,321 $12,955 $14,260
1999 $13,815 $13,435 $14,729
</TABLE>

Average Annual Total Returns

For periods ending July 30, 1999
--------------------------------
Since Inception
1 year 5 year (November 23, 1992)
------ ------ -------------------
Without sales charge 3.70% 4.61% 4.95%
With sales charge (2.75%) .85% 4.03% 4.52%

Putting Performance into Perspective
Returns are historical and are not a guarantee of future results. 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. 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

07-31-98 NAV (share value) $12.07
07-30-99 NAV $11.98
Average Maturity 9.3 years
Number of issues 48
Total Net Assets $21,333,426

<TABLE>
<CAPTION>
Schedule of Investments July 30, 1999
Name of Issuer
Percentages represent the Rating
market value of each investment Coupon (Unaudited) Principal Market
category to total net assets Moodys /S&P Rate Maturity Amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
KANSAS MUNICIPAL BONDS (97.8%)

Butler Cty., KS (Augusta) USD #402 G.O. AMBAC Aaa/AAA 5.400% 10/01/06 $ 200,000 $ 205,258
*Douglas Cty., KS USD #497 (Lawrence) G.O. FGIC Aaa/AAA 7.200 09/01/02 1,370,000 1,496,725
Harvey Cty., KS USD #373 (Newton) FSA Aaa/AAA 5.000 09/01/16 250,000 245,915
Johnson Cty., KS USD #232 (Desoto) G.O. MBIA Aaa/AAA 5.150 09/01/09 510,000 533,689
Johnson Cty., KS USD #232 (Desoto) G.O. MBIA Aaa/AAA 5.200 09/01/10 600,000 624,636
Johnson Cty., KS USD #233 (Olathe) G.O. AMBAC Aaa/AAA 6.150 03/01/07 300,000 317,031
Kansas City, KS (St. Margaret Hlth. Ctr.) AMBAC Aaa/AAA 5.700 08/01/03 250,000 264,230
Kansas City, KS Special Obligation Escrowed NR/AAA 6.000 02/15/03 200,000 212,056
KS Devl. Finance Auth. (Hays Medl. Ctr.) Rev. MBIA Aaa/NR 5.300 11/15/09 375,000 394,976
KS Devl. Finance Auth. (Hays Medl. Ctr.) Rev. MBIA Aaa/NR 5.200 11/15/08 375,000 391,984
#KS Devl. Finance Auth. (Stormont Vail) Hlth. Care MBIA Aaa/AAA 5.700 11/15/08 450,000 481,063
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care MBIA Aaa/AAA 5.800 11/15/11 300,000 318,882
KS Devl. Finance Auth. (Stormont Vail) Hlth. Care MBIA Aaa/AAA 5.600 11/15/07 100,000 106,363
KS Devl. Finance Auth. (Park Apts.) Hsg. Rev. FNMA NR/AAA 5.700 12/01/09 325,000 334,123
KS Devl. Finance Auth. Pooled Ref. Lease Rev. MBIA Aaa/AAA 5.500 10/01/05 250,000 264,535
KS State Turnpike Auth. Rev. FGIC Aaa/AAA 5.450 09/01/10 200,000 208,800
Larned, KS (Cath. Hlth. Corp.) Hlth. Facs. Rev. MBIA Aaa/AAA 5.400 11/15/04 155,000 162,796
Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. ASGUA NR/AA 6.050 02/01/06 350,000 360,591
*Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. ASGUA NR/AA 5.875 02/01/04 500,000 517,940
Lenexa, KS (Barrington Park) Multifamily Hsg. Rev. ASGUA NR/AA 5.950 02/01/05 250,000 258,025
McPherson Cty., KS (McPherson) USD #418 G.O. FSA Aaa/AAA 5.700 09/01/06 400,000 429,336
Mission, KS (Lamar Place) Multifamily Hsg. Rev. FNMA NR/AAA 5.000 10/01/14 605,000 599,023
Mission, KS (Lamar Place) Multifamily Hsg. Rev. FNMA NR/AAA 5.180 10/01/23 945,000 926,865
Olathe, KS (Bristol Pointe) MultiFamily Hsg. Rev. Ref. FNMA NR/AAA 5.250 11/01/12 485,000 489,918
Olathe, KS (Evangelical Luth. Good Samaritan Soc.) AMBAC Aaa/AAA 5.500 05/01/03 110,000 115,170
Olathe, KS (Evangelical Luth. Good Samaritan Soc.) AMBAC Aaa/AAA 5.400 05/01/02 150,000 155,065
Olathe, KS (Evangelical Luth. Good Samaritan Soc.) AMBAC Aaa/AAA 5.200 05/01/01 140,000 142,723
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. AMBAC Aaa/AAA 5.125 09/01/12 500,000 502,255
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. Ref. AMBAC Aaa/AAA 5.600 09/01/05 1,000,000 1,038,530
Sedgwick Cty., KS (Maize) USD #266 G.O. FSA Aaa/AAA 5.500 09/01/05 300,000 314,727
Sedgwick Cty., KS (Maize) USD #266 G.O. FSA Aaa/AAA 5.600 09/01/06 200,000 210,254
Sedgwick Cty., KS (Renwick) USD #267 G.O. AMBAC Aaa/AAA 6.000 11/01/07 570,000 621,072
Sedgwick Cty., KS (Renwick) USD #267 G.O. AMBAC Aaa/AAA 5.850 11/01/06 290,000 314,285
Sedgwick\Shawnee Cty., KS Single Family Mrtge. Rev. GNMA Aaa/NR 5.200 12/01/08 490,000 498,541
Shawnee Cty., KS (Shawnee Heights) USD #450 G.O. FSA Aaa/AAA 6.500 09/01/00 250,000 256,755
*Shawnee Cty., KS (Topeka) USD #501 G.O. FGIC Aaa/AAA 5.550 02/01/07 820,000 858,819
Shawnee KS (Thomasbroooks Apts.) Multi Hsg Rev FNMA NR/AAA 5.250 10/01/14 1,000,000 993,410
Wellington, KS Utility Rev. AMBAC Aaa/AAA 4.950 05/01/11 300,000 302,565
Wellington, KS Utility Rev. AMBAC NR/AAA 5.000 05/01/12 250,000 252,087
Wichita, KS (St. Francis Regl. Medl. Ctr.) Impvt. MBIA Aaa/AAA 6.100 10/01/04 775,000 832,869
Wichita, KS (St. Francis Regl. Medl. Ctr.) Impvt. MBIA Aaa/AAA 6.000 10/01/03 250,000 267,625
Wichita, KS Airport Auth. Facs. Rev. Ref. ASGUA NR/AA 7.000 03/01/05 100,000 108,432
#Wichita, KS Multi Hsg. (Broadmoor Chelsea) Rev. FNMA NR/AAA 5.375 07/01/10 625,000 639,363
*Wichita, KS Multifamily Hsg. (Cimarron Apartments) FNMA Aa/AAA 5.250 10/01/12 755,000 764,370
Wichita, KS Water & Sewer Util. Rev. Ref. FGIC Aaa/AAA 5.600 04/01/05 610,000 629,569
Wichita, KS Water & Sewer Util. Rev. Ref. FGIC Aaa/AAA 5.750 10/01/06 150,000 153,804
Wichita, KS Water & Sewer Rev. FGIG Aaa/AAA 5.000 10/01/15 250,000 241,250
Wichita, KS Water & Sewer Util. Rev. FGIC Aaa/NR 5.000 10/01/11 500,000 506,980
------------
TOTAL KANSAS MUNICIPAL BONDS (COST: $20,258,184) $ 20,865,280
------------
SHORT-TERM SECURITIES (.8%)
Federated Tax-Free Fund 73 $ 30,093
Federated Intermediate Municipal Trust 78 149,433
------------
TOTAL SHORT-TERM SECURITIES (COST: $180,093) $ 179,526
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $20,438,277) $ 21,044,806
OTHER ASSETS LESS LIABILITIES 288,620
------------
NET ASSETS $ 21,333,426
=============
</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 30, 1999

Statement of Assets and Liabilities July 30, 1999
- ---------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>

Assets
Investment in securities, at value (cost: $20,438,277) $ 21,044,806
Accrued interest receivable 395,415
Accrued dividends receivable 490
------------
Total Assets $ 21,440,711
------------
Liabilities
Bank overdraft $ 10,947
Dividends payable 79,035
Accrued expenses 17,303
------------
Total Liabilities $ 107,285
------------

Net Assets $ 21,333,426
============
Net assets are represented by:
Paid-in capital $ 21,596,919
Accumulated undistributed net realized gain (loss) on
Investments (870,022)
Unrealized appreciation on investments 606,529
------------
Total amount representing net assets applicable to
1,781,247 outstanding shares of no par common
stock (unlimited shares authorized) $ 21,333,426
============
Net asset value per share $ 11.98
============
The accompanying notes are an integral part of these financial statements.

Statement of Operations For the year ended July 30, 1999
- ----------------------------------------------------------

INVESTMENT INCOME
Interest $ 1,068,785
Dividends 17,380
------------
Total Investment Income $ 1,086,165
------------
EXPENSES
Investment advisory fees $ 105,661
Transfer agent fees 30,456
Accounting service fees 34,563
Custodian fees 3,168
Transfer agent out of pockets 2,903
Professional fees 4,165
Trustees' fees 2,482
Reports to shareholders 2,297
Registration and filing fees 500
Insurance Expense 1,525
------------
Total Expenses $ 187,720
Less expenses waived or absorbed
by the Fund's manager (29,229)
------------
Total Net Expenses 158,491
------------
NET INVESTMENT INCOME $ 927,674
------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 22,513
Futures transactions (49,621)
Net change in unrealized appreciation (depreciation) of:
Investments $ (135,565)
Futures (2,094)
------------
Net Realized and Unrealized Gain (Loss) on
Investments and Futures $ (164,767)
------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 762,907
============

</TABLE>

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

Financial Statements July 30, 1999

Statement of Changes in Net Assets
For the year ended July 30, 1999 and the year ended July 31, 1998
- -------------------------------------------------------------------

<TABLE>
<CAPTION>
For The Year Ended For The Year Ended
July 30, 1999 July 31, 1998
----------------------------------------------

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S> <C> <C>
Net investment income $ 927,674 $ 993,262
Net realized gain (loss) on investment and futures transactions (27,108) (125,540)
Net change in unrealized appreciation (depreciation) on investments
and futures (137,659) (212,731)
----------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 762,907 $ 654,991
----------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.53 and $.54 per share,
respectively) $ (927,674) $ (993,262)
Distributions from net realized gain on investment
and future transactions 0 0
----------------------------------------------
Total Dividends and Distributions $ (927,674) $ (993,262)
----------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 2,012,253 $ 746,870
Proceeds from reinvested dividends 542,608 603,378
Cost of shares redeemed (1,641,509) (5,960,554)
----------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 913,352 $ (4,610,306)
----------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ 748,585 $ (4,948,577)
NET ASSETS, BEGINNING OF PERIOD 20,584,841 25,533,418
---------------------------------------------
NET ASSETS, END OF PERIOD $ 21,333,426 $ 20,584,841
===============================================
</TABLE>

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

Notes to Financial Statements July 30, 1999

Note 1. ORGANIZATION

Business Operations -The Kansas Insured Intermediate Fund (the "Fund") is an
investment portfolio of Ranson Managed Portfolios (the "Trust") registered
under the Investment Company Act of 1940, as amended, as a non-diversified,
open-end management investment company. The Trust may offer multiple
portfolios; currently four portfolios are offered. Ranson Managed Portfolios
is an unincorporated business trust organized under Massachusetts law on
August 10, 1990. The Fund had no operations from that date to November 23,
1992, other than matters relating to organization and registration. On
November 23, 1992, the Fund commenced its Public Offering of capital shares.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal and Kansas income
tax as is consistent with preservation of capital. The Fund will seek to
achieve this objective by investing primarily in a portfolio of Kansas
insured securities. Shares of the Fund are offered at net asset value plus
a maximum sales charge of 2.75% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, and
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 30,
1999, a net capital loss carryforward totaling $870,022, which may be used to
offset capital gains realized during subsequent years through July 31, 2007.

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

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 30, 1999, there were unlimited shares of no par authorized;
1,781,247 and 1,705,829 shares were outstanding at July 30, 1999 and July 31,
1998, respectively.

Transactions in capital shares were as follows:

Shares
--------
For The For The
Year Ended Year Ended
July 30, 1999 July 31, 1998
--------------- ---------------
Shares sold 166,145 61,738
Shares issued on reinvestment
of dividends 44,820 49,895
Shares redeemed (135,547) (492,742)
--------------- ---------------
Net increase (decrease) 75,418 (381,109)
=============== ===============

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 $76,432 of investment
advisory fees after partial waiver for the year ended July 30, 1999. The Fund
has a payable to Ranson Capital Corporation of $7,898 at July 30, 1999 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 30, 1999, commissions earned
by ND Capital, Inc. totaled $625 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 $30,456 of transfer agency fees
and expenses for the year ended July 30, 1999. The Fund has a payable to ND
Resources, Inc. of $2,553 at July 30, 1999 for transfer agency fees. 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 $34,563 of
accounting service fees for the year ended July 30, 1999. The Fund has a
payable to ND Resources, Inc. of $2,887 at July 30, 1999 for accounting
service fees.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $4,617,325 and $3,354,494,
respectively, for the year ended July 30, 1999.

Note 6. INVESTMENT IN SECURITIES

At July 30, 1999, the aggregate cost of securities for federal income tax
purposes was $20,438,277, and the net unrealized appreciation of investments
based on the cost was $606,529, which is comprised of $658,631 aggregate
gross unrealized appreciation and $52,102 aggregate gross unrealized
depreciation.

Financial Highlights Selected per share data and ratios for the period
indicated
- ------------------------------------------------------------------------
<TABLE>
<CAPTION>
For The Year Ended
---------------------------------------------------------------------------
1999 1998 1997 1996 1995
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.07 $ 12.23 $ 12.19 $ 12.04 $ 11.92
---------------------------------------------------------------------------
Income from Investment Operations:
Net investment income $ .53 $ .54 $ .53 $ .53 $ .54
Net realized and unrealized gain (loss)
on investment and futures transactions (.09) (.16) .04 .15 .12
---------------------------------------------------------------------------
Total Income (Loss) From Investment
Operations $ .44 $ .38 $ .57 $ .68 $ .66
---------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.53) $ (.54) $ (.53) $ (.53) $ (.54)
Distributions from net capital gains .00 .00 .00 .00 .00
---------------------------------------------------------------------------
Total Distributions $ (.53) $ (.54) $ (.53) $ (.53) $ .54)
---------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.98 $ 12.07 $ 12.23 $ 12.19 $ 12.04
=============================================================================
Total Return 3.70%(A) 3.17%(A) 4.76%(A) 5.75%(A) 5.72%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $21,333 $20,585 $25,533 $30,564 $30,678
Ratio of net expenses
(after expense assumption)
to average net assets 0.75%(B) 0.75%(B) 0.76%(B) 0.69%(B) 0.62%(B)
Ratio of net investment income
to average net assets 4.39% 4.42% 4.33% 4.37% 4.57%
Portfolio turnover rate 16.34% 25.46% 28.68% 19.96% 63.00%
</TABLE>

(A) Excludes maximum sales charge of 2.75%.
(B) During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed/waived expenses of $29,229, $13,708, $40,608,
$71,943, and $112,745, respectively. If the expenses had not been assumed/
waived, the annualized ratios of total expenses to average net assets
would have been 0.89%, 0.82%, 0.90%, 0.92%, and 0.98%, respectively.

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

Tax Information For The Year Ended July 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Dividends and Distributions Per Share
-------------------------------------
From Net From Net
To Shareholders of Investment Realized Short- From Net Realized
Record Payment Date Income Term Gains Long-Term Gains
- ------------------ ------------------ ---------- --------------- ------------------
<S> <C> <C> <C> <C>
August 28, 1998 August 31, 1998 $ .045 - -
September 29, 1998 September 30, 1998 .044 - -
October 29, 1998 October 30, 1998 .044 - -
November 27, 1998 November 30, 1998 .044 - -
December 30, 1998 December 31, 1998 .044 - -
January 28, 1999 January 29, 1999 .043 - -
February 25, 1999 February 26, 1999 .040 - -
March 30, 1999 March 31, 1999 .050 - -
April 29, 1999 April 30, 1999 .044 - -
May 27, 1999 May 28, 1999 .042 - -
June 29, 1999 June 30, 1999 .048 - -
July 29, 1999 July 30, 1999 .045 - -

</TABLE>
Shareholders should consult their tax advisors.

INDEPENDENT AUDITOR'S REPORT

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

We have audited the accompanying statement of assets and liabilities of The
Kansas Insured Intermediate Fund, (one of the portfolios constituting the
Ranson Managed Portfolios), including the schedule of investments, as of July
30, 1999, 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 four 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 the period ended July 31,
1995, were audited by other auditors whose report dated September 11, 1995,
expressed an unqualified opinion on those financial highlights.

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 30, 1999, by correspondence with
the custodian. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Kansas Insured Intermediate Fund of the Ranson Managed Portfolios, as of
July 30, 1999, 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 four years in the period then
ended, in conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1999

Dear Shareholder:

We are pleased to enclose the annual report of the operations of The Nebraska
Municipal Fund for the year ended July 30, 1999. The Fund's portfolio and
related financial statements are presented within for your review.

As we end the first half of 1999, stabilizing global economies and the U.S.
economy growing at what many economists believe is an unsustainable pace has
lead the Federal Reserve to raise short-term interest rates a quarter of a
percentage point. Strong consumer spending and a tight labor market were the
primary factors for Mr. Greenspan's pre-emptive strike against a rise in
inflation. Typically, a higher fed funds rate - the rate at which banks
borrow from each other overnight - means higher rates for things such as
mortgage loans, credit cards and savings accounts.

Anticipations of a Federal Reserve tightening have seen yields on the
benchmark 30-year Treasury bond rise from a January yield of 5.07% to 6.10%.

Tax-free municipal yields have also risen from 5.06% to 5.41% on AAA rated
bonds. This slower rise compared to Treasuries can be attributed to investor
demand for tax-free bonds.

The Nebraska Municipal Fund began the year at $11.13 and closed the year at
$11.01. In anticipation of stronger economic growth, the Nebraska Municipal
Fund, at times during the period utilized a defensive position in U.S.
Treasury futures. Share price was tempered as yields on U.S. Treasuries
declined in the latter part of 1998 and stabilized as yields on U.S.
Treasuries rose throughout the first half of 1999. Stability of share price
is the primary objective of a defensive position.

The Fund continues to invest in high-grade Nebraska tax-exempt bonds.
Diversification remains an important strategy for the Fund. Purchases
throughout the year in the primary and secondary markets include Douglas
County Hospital Authority, Nebraska Public Power, and Omaha Rosenblatt Stadium
Facility.

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

Sincerely,

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

PERFORMANCE AND COMPOSITION
- ---------------------------
Portfolio Ratings
(based on Total Long-Term Investments)
- --------------------------------------
[pie chart]
AAA 51.1
AA 17.0
A 13.5
BBB 1.9
NR 16.5

Portfolio Market Sectors
(as a % of Net Assets)
- --------------------------
[pie chart]
H-Housing 19.1
HC-Health Care 18.5
U-Utilities 16.0
S-School 15.3
GO-General Obligation 13.5
O-Other 7.5
I-Industrial 5.7
W/S-Water/Sewer 2.5
C/L-Cop/Lease 1.9

Market sectors are breakdowns of the Fund's portfolio holdings into specific
investment classes.
These percentages are subject to change.

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

Comparison of change in value of a $10,000 investment in The
Nebraska Municipal Fund and the Lehman Brothers Municipal Bond Index

The Nebraska The Nebraska The Lehman
Municipal Fund Municipal Fund Brothers Muni
w/o sales charge w/ max sales charge Bond Index
- ---------------------------------------------------------------------------
11/17/93 $10,000 $ 9,575 $10,000
1994 $ 9,773 $ 9,357 $ 9,892
1995 $10,471 $10,026 $10,672
1996 $11,071 $10,600 $11,376
1997 $11,909 $11,402 $12,544
1998 $12,380 $11,853 $13,295
1999 $12,853 $12,306 $13,677

Average Annual Total Returns
- ----------------------------
For periods ending July 30, 1999
----------------------------------
Since Inception
1 year 5 year (November 17, 1993)
-------------------------------------------------
Without sales charge 3.82% 5.63% 4.50%
With sales charge (4.25%) (.59)% 4.72% 3.71%

Putting Performance into Perspective
Returns are historical and are not a guarantee of future results. 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. 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
- --------------
07-31-98 NAV(share value) $11.13
07-30-99 NAV $11.01
Average Maturity 19.0 years
Number of Issues 122
Total Net Assets $41,942,648

<TABLE>
<CAPTION>
Schedule of Investments July 30, 1999
Name of Issuer Rating
Percentages represent the market value of each investment (Unaudited) Coupon Principal Market
category to total net assets 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 Hosp.) ASGUA NR/AA 5.300% 12/15/18 $ 250,000 $ 249,232
NE Public Gas (American Public Energy Agency) AMBAC Aaa/AAA 4.700 06/01/11 200,000 197,302
Columbus, NE Combined Rev. NR/NR 5.100 12/15/16 125,000 121,038
Columbus, NE Combined Rev. NR/NR 5.200 12/15/17 100,000 97,198
Cuming Cty., NE School Dist. #020 (Bancraft-Rosalie) NR/NR 5.750 12/15/17 100,000 97,966
Dawson Cty., NE SID #1 (IBP, Inc. Proj.) Ref. G.O. A-3/A- 5.650 02/01/22 700,000 701,981
District Energy Corp., NE (County Bldg. & Correction) Fac. Rev. NR/NR 5.500 07/01/13 150,000 150,490
Douglas Cty., NE Hosp. Impvt. G.O. Aa/AA+ 5.100 07/01/04 150,000 155,440
Douglas Cty., NE Hospital (Alegent Hlth.) Auth. #001 Rev. AMBAC Aaa/AAA 5.250 09/01/21 250,000 246,093
Douglas Cty., NE Hosp. Auth. #002 (Archbishop Bergan) Hlth. Facs. Aa/AA- 5.850 11/15/03 100,000 106,270
Douglas Cty., NE Hosp. Auth. #002 (Archbishop Bergan) Hlth. Facs. Aa/AA- 6.250 11/15/22 100,000 103,677
Douglas Cty., NE Hosp. Auth. #002 (Archbishop Bergan) Hlth Facs. Aaa/AAA 6.000 11/15/15 125,000 131,650
Douglas Cty., NE (Catholic Health Corp.) Hlth. Facs. Rev. MBIA Aaa/AAA 5.375 11/15/15 275,000 277,794
Douglas Cty., NE (Catholic Health Corp.) Rev. MBIA Aaa/AAA 5.500 11/15/21 340,000 345,477
Douglas Cty., NE Hosp. Auth. #002 (Lakeside Village) Hlth. Aaa/AAA 5.000 12/15/17 250,000 238,262
Douglas Cty., NE Hosp. Auth #2 (Bethphage Project) Rev. NR/NR 5.400 02/01/13 120,000 118,387
Douglas Cty., NE SID #257 (Ramble Ridge) G.O. NR/NR 6.250 05/15/09 100,000 102,535
Douglas Cty., NE SID #295 G.O. NR/NR 6.500 06/01/17 800,000 786,640
Douglas Cty., NE SID #392 (Cinnamon Creek) G.O. NR/NR 5.750 08/15/17 200,000 195,334
Douglas Cty., NE SID #396 (First National Business Park) NR/NR 5.750 09/01/17 100,000 97,740
Douglas Cty., NE SID #240 (LeBea) Ref. G.O. NR/NR 5.900 10/15/16 100,000 101,150
Douglas Cty., NE SID #397 (Linden Estates II) NR/NR 5.600 07/15/18 265,000 262,019
Douglas Cty., NE SID #397 (Linden Estates II) NR/NR 5.600 07/15/19 280,000 276,732
Douglas Cty., NE SD #010 (Elkhorn Pub. Schools) G.O. NR/A 6.600 12/15/10 100,000 101,574
Douglas Cty., NE SD #010 (Elkhorn Pub. Schools) G.O. NR/A 6.750 12/15/14 100,000 101,664
Douglas Cty., NE SD #066 G.O. (Westside Comm. Schools) A-1/AA 5.000 12/01/17 150,000 144,012
Gage Cty., NE Hosp. Auth. #01 (Beatrice Comm. Hosp.) Hosp. Rev. NR/NR 6.400 10/01/07 100,000 106,976
Gage Cty., NE Hosp. Auth. #01 (Beatrice Comm. Hosp.) Hosp. Rev. NR/NR 6.750 10/01/14 200,000 216,024
Gage Cty., NE (Beatrice) School Dist. #15 G.O. AMBAC Aaa/AAA 5.900 12/15/16 850,000 871,301
Grand Island, NE Sewer Syst. Rev. NR/A 6.000 04/01/14 550,000 572,495
Hastings, NE Combined Utilities Rev. NR/NR 6.875 10/15/14 100,000 101,056
Hastings, NE Elec. Rev. A-3/A 6.300 01/01/19 370,000 387,090
Kearney Cty., NE Combined Util. Rev. A-1/NR 6.100 06/01/14 800,000 807,560
Keith Cty., NE SD #001 (Ogallala Pub. Schools) G.O. NR/NR 6.300 11/15/09 100,000 101,262
Lancaster Cty., NE Hosp. Auth. #001 (Sisters of Charity) Hosp. Aaa/AAA 6.250 05/15/12 200,000 217,474
Lancaster Cty., NE (Lincoln Medl. Educ. Foundn.) Rev. NR/NR 5.700 02/01/11 100,000 100,794
Lancaster Cty., NE (Lincoln Medl. Educ. Foundn.) Rev. NR/NR 5.800 02/01/12 175,000 177,681
Lancaster Cty., NE (Bryan Memorial Hospital) Rev. MBIA Aaa/AAA 5.375 06/01/19 1,275,000 1,267,439
Lincoln/Lancaster Cties., NE Public Bldg. Comm. G.O. NR/NR 6.200 10/15/11 100,000 104,662
Lincoln/Lancaster Cties., NE Public Bldg. Community Tax
Lease Rental Aa/AA+ 5.800 10/15/18 475,000 499,928
Lincoln/Lancaster Cties., NE Public Bldg. Community Rev. Aa/AA+ 5.875 10/15/23 850,000 882,793
Lincoln, NE Various Purpose Unlimited Tax G.O. Aa-1/AAA 4.750 08/15/19 750,000 707,182
Lincoln, NE Elec. Syst. Rev. Aa/AA+ 5.750 09/01/16 750,000 769,320
Lincoln, NE Parking Rev. NR/NR 6.100 08/15/09 250,000 258,628
Lincoln, NE Parking Rev. NR/NR 6.150 08/15/11 100,000 103,242
Madison Cty., NE Hosp. Auth. #1 (Faith Regl. Hlth. Svcs.) NR/AA 5.350 07/01/18 250,000 247,758
McCook, NE Pub. Pwr. Dist. Elec. Sys. Rev. NR/NR 6.750 12/15/09 100,000 101,544
NE Municipal Energy Agency Power Supply Syst. Rev. Ref. AMBAC Aaa/AAA 6.000 04/01/17 200,000 207,586
NE Hgr. Educ. Loan Program Senior Subord. Term MBIA Aaa/AAA 6.250 06/01/18 800,000 826,792
NE Higher Ed Jr-Sub Rev. MBIA Aaa/AAA 6.400 06/01/13 300,000 320,496
NE Hgr. Educ. Loan Program Junior Subord. Term MBIA Aaa/AAA 6.450 06/01/18 400,000 422,384
*NE Hgr. Educ. Loan Program Student Loan MBIA Aaa/AAA 5.875 06/01/14 1,350,000 1,381,671
NE Student Loan Program B Rev. MBIA Aaa/AAA 6.000 06/01/28 100,000 98,770
NE Educ. Finance Auth. (Concordia Teachers College) Rev. NR/NR 5.900 12/15/15 100,000 101,331
NE Educ. Finance Auth. (Dana College) Rev. G.O. of Instn. NR/NR 6.750 06/01/14 100,000 109,822
NE Educ. Finance Auth. (Midland Lutheran College) Rev. G.O. NR/NR 6.250 06/15/15 300,000 303,213
NE Educ. Finance Auth. (Creighton Univ.) Rev. AMBAC Aaa/AAA 5.950 01/01/11 300,000 325,203
NE Educ. Finance Auth. (Midland Lutheran College) Rev. G.O. NR/NR 5.550 06/15/18 500,000 512,805
NE Educ. Finance Auth. (Grace Univ.) Rev. NR/NR 5.300 02/01/15 200,000 192,630
NE Educ. Finance Auth. (Grace Univ.) Rev. NR/NR 5.500 02/01/19 200,000 189,912
NE Invmt. Finance Auth. (Muirfield Greens) Multifamily Rev. FHA Aa/NR 6.800 12/01/15 360,000 377,147
NE Invmt. Finance Auth. (Muirfield Greens) Multifamily Rev. FHA Aa/NR 6.850 12/01/25 525,000 550,043
NE Invmt. Finance Auth. (Kings Gate Sr. Apts.) Multifamily Hsg. NR/AAA 5.350 03/01/29 290,000 287,172
NE Invmt. Finance Auth. (Catholic Hlth. Initiatives) Rev. Aa/AA 5.125 12/01/17 200,000 195,602
NE Invmt. Finance Auth. (State Revolving Fund) Rev. NR/A+ 4.600 07/01/08 100,000 99,016
NE Invmt. Finance Auth. (State Revolving Fund) Rev. NR/A+ 4.700 07/01/09 100,000 98,997
NE Invmt. Finance Auth. (State Revolving Fund) Rev. NR/A+ 4.800 07/01/10 100,000 98,898
NE Invmt. Finance Auth. (State Revolving Fund) Rev. NR/A+ 4.900 07/01/11 100,000 98,742
NE Invmt. Finance Auth. Single Family Hsg. Rev. Coll. NR/AAA 6.300 03/01/17 175,000 185,281
*NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 6.600 09/01/20 660,000 691,588
NE Invmt. Finance Auth. Single Family Hsg. Rev. VA/FNMA NR/AAA 7.300 09/01/26 390,000 408,689
NE Invmt. Finance Auth. Single Family Hsg. Rev. FHA/VA NR/AAA 6.150 03/01/09 100,000 103,630
NE Invmt. Finance Auth. Single Family Hsg. Rev. FHA/VA NR/AAA 6.200 09/01/10 100,000 102,957
NE Invmt. Finance Auth. Single Family Hsg. Rev. FHA/GNMA NR/AAA 6.500 09/01/18 400,000 418,292
NE Invmt. Finance Auth. Single Family Hsg. Rev. FNMA/GNMA NR/AAA 6.400 09/01/26 250,000 260,348
NE Invmt. Finance Auth. Single Family Hsg. Rev. Coll. NR/AAA 5.950 03/01/27 100,000 102,605
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA/FNMA NR/AAA 6.250 09/01/28 220,000 227,126
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA/FNMA NR/AAA 5.850 09/01/17 95,000 97,526
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA NR/AAA 6.200 09/01/17 250,000 262,143
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA NR/AAA 6.250 03/01/21 300,000 315,204
*NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 6.300 09/01/28 1,105,000 1,160,891
NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 5.850 09/01/28 465,000 473,998
NE Invmt. Finance Auth. Single Family Hsg. Rev. NR/AAA 5.250 09/01/28 250,000 245,128
#NE Invmt. Finance Auth. (Children Healthcare Svcs.) Rev. AMBAC Aaa/AAA 5.500 08/15/27 1,000,000 1,008,020
NE Invmt. Finance Auth. Multifamily Hsg. Rev. FNMA NR/AAA 6.200 06/01/28 495,000 507,736
NE Invmt. Finance Auth. Multifamily Hsg. Rev. GNMA NR/AAA 6.000 06/01/17 500,000 518,690
NE Invmt. Finance Auth. Multifamily Hsg. Rev. GNMA NR/AAA 6.100 06/01/29 500,000 513,295
NE Invmt. Finance Auth. Multifamily Hsg. (Waterbrook) Rev. Aaa/AAA 5.600 04/01/07 210,000 220,609
NE Public Gas Agency (Gas Supply Sys.) Rev. Baa-1/NR 6.250 04/01/05 200,000 210,970
NE Public Gas Agency (Gas Supply Sys.) Rev. Baa-1/NR 5.650 04/01/06 200,000 208,370
NE Public Power Dist. (Power Supply Syst.) Rev MBIA Aaa/AAA 5.000 01/01/28 250,000 237,740
NE Public Power Dist. (Power Supply Syst.) Rev. MBIA Aaa/AAA 5.000 01/01/28 700,000 665,672
NE Public Power Dist. (Power Supply Syst.) Rev. FSA Aaa/AAA 5.125 01/01/19 750,000 729,210
NE Public Power Dist. (Elec. System) Rev. Coll. Govts. Aaa/AAA 6.250 01/01/12 150,000 161,112
NE Public Power Dist. (Power Supply Syst.) Rev. Aaa/AAA 6.125 01/01/15 390,000 423,131
NE Public Power Dist. (Power Supply Syst.) Rev. Aaa/AAA 5.750 01/01/20 250,000 260,218
NE State Colleges Facs. Deferred Maintenance Project NR/A 5.050 09/15/09 325,000 323,330
NE Invmt. Finance Auth. (Great Plains Regl. Medl. Ctr.) NR/AAA 6.500 05/15/14 300,000 327,873
NE Invmt. Finance Auth. (Great Plains Regl. Medl. Ctr.) ASSET GUAR NR/AA 5.450 11/15/17 400,000 399,456
NE Elem. & Secondary School Fin. Auth. (Creighton Prep) NR/BBB+ 5.000 07/15/09 250,000 246,220
North Platte, NE Spec. Assessment G.O. NR/NR 6.200 03/15/15 100,000 100,314
Northeast NE Solid Waste Facs. Rev. MBIA Aaa/AAA 5.900 05/15/15 600,000 604,878
Northeast NE Juvenile Svcs. (Detention) 1st Mrtge. Rev. NR/NR 6.375 06/01/17 770,000 769,492
Omaha, NE Various Purpose Aaa/AAA 6.250 12/01/12 250,000 276,250
Omaha, NE Various Purpose Aaa/AAA 6.250 12/01/14 250,000 275,063
Omaha, NE Parking Facs. Corp. (Omaha Park 4\5) Lease Rev. Aa-1/AA+ 5.700 09/15/15 750,000 789,180
Omaha, NE Public Power Dist. Elec. Syst. Rev. NR/AA 6.000 02/01/15 330,000 359,509
Omaha, NE Public Power Dist. Elec. Syst. Rev. Aa/NR 6.200 02/01/17 650,000 717,359
Omaha, NE (Rosenblatt Stadium) Facs. Rev. Aa-1/AA+ 5.000 11/01/18 500,000 481,985
Otoe Cty., NE School Dist. #111 (Nebraska City) Ref. AMBAC Aaa/AAA 5.800 11/15/14 400,000 404,224
Platte Cty., NE (Columbus) SD #001 GO School Building Bonds A/NR 5.000 12/15/19 500,000 484,260
Sarpy Cty., NE SID #86 (Willow Springs) G.O. NR/NR 6.250 01/15/17 100,000 99,288
Sarpy Cty., NE SID #52 (Prairie Corners) G.O. NR/NR 6.000 10/01/17 300,000 294,759
Sarpy Cty., NE SID #142 (Fair Meadows) Ref. G.O. NR/NR 5.850 08/15/17 100,000 98,654
Scotts Bluff Cty., NE Hosp. Auth. #1 (Regl West Medl. Ctr.) A-3/A- 5.125 11/15/19 1,250,000 1,187,112
Scotts Bluff Cty., NE Hosp. Auth. #1 (Regl West Medl. Ctr.) A-3/A- 5.250 11/15/28 500,000 477,385
Washington Cty., NE School Dist. #1 G.O. NR/A 5.800 07/15/11 100,000 101,154
Washington Cty., NE School Dist. #1 G.O. NR/A 5.900 07/15/15 135,000 136,277
Western NE Community College COP's NR/NR 6.550 10/15/13 150,000 156,184
York, NE Water Rev. NR/NR 5.150 06/01/17 250,000 244,837
York, NE Sewer Syst. Rev. NR/NR 5.850 06/01/12 140,000 142,57
York, NE Sewer Syst. Rev. NR/NR 6.000 06/01/17 100,000 98,483
----------
TOTAL NEBRASKA MUNICIPAL BONDS (COST: $40,394,251) $41,224,373
----------
SHORT-TERM SECURITIES (.7%)
Federated Tax-Free Fund 73 $ 64,410
Federated Intermediate Municipal Trust 78 224,135
----------
TOTAL SHORT-TERM SECURITIES (COST: $289,410) $ 288,545
----------
TOTAL INVESTMENTS IN SECURITIES (COST: $40,683,661) $41,512,918
OTHER ASSETS LESS LIABILITIES 429,730
----------
NET ASSETS $41,942,648
============
</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 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.

Statement of Assets and Liabilities July 30, 1999
- ---------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Assets
Investment in securities, at value (Cost: $40,683,661) $ 41,512,918
Accrued interest receivable 605,908
Accrued dividends receivable 1,777
Receivable for fund shares sold 50,000
---------------
Total Assets $ 42,170,603
---------------
Liabilities
Dividends payable $ 172,321
Accrued expenses 30,040
Payable for fund shares redeemed 25,594
---------------
Total Liabilities $ 227,955
---------------

Net Assets $ 41,942,648
===============

Net assets are represented by:
Paid-in capital $ 42,850,706
Accumulated undistributed net realized gain (loss) on
Investments (1,737,315)
Unrealized appreciation on investments 829,257
---------------
Total amount representing net assets applicable to
3,808,712 outstanding shares of no par common
stock (Unlimited shares authorized) $ 41,942,648
===============
Net asset value per share $ 11.01
===============

Statement of Operations For the year ended July 30, 1999
- ---------------------------------------------------------

INVESTMENT INCOME
Interest $ 1,664,770
Dividends 16,250
----------------
Total Investment Income $ 1,681,020
----------------

EXPENSES
Investment advisory fees $ 151,507
Service fees 75,753
Transfer agent fees 42,192
Accounting service fees 39,190
Custodian fees 4,669
Transfer agent out of pockets 4,490
Professional fees 4,471
Reports to shareholders 2,743
Trustees fees 2,878
Registration and filing fees 2,207
Amortization of organization costs 1,868
Insurance expense 1,958
---------------
Total Expenses $ 333,926

Less expenses waived or absorbed
by the Fund's manager (119,949)
---------------
Total Net Expenses $ 213,977
---------------
NET INVESTMENT INCOME $ 1,467,043
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions $ 65,174
Futures transactions 116,437
Net change in unrealized appreciation (depreciation) of:
Investments (755,751)
Futures (2,792)
---------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures $ (576,932)
---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 890,111
===============
</TABLE>

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

Financial Statements July 30, 1999

Statement of Changes in Net Assets
For the year ended July 30, 1999 and the year ended July 31, 1998
- ------------------------------------------------------------------
<TABLE>
<CAPTION>

For The Year For The Year
Ended Ended
July 30, 1999 July, 31 1998
--------------------- ---------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,467,043 $ 1,380,231
Net realized gain (loss) on investment and futures transactions 181,611 (383,905)
Net change in unrealized appreciation (depreciation) on investments
and futures (758,543) 49,878
-------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 890,111 $ 1,046,204
-------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income
($.54 and $.56 per share, respectively) $ (1,467,043) $ (1,380,231)
Distributions from net realized gain on investment
and futures transactions 0 0
-------------------------------------------------
Total Dividends and Distributions $ (1,467,043) $ (1,380,231)
-------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 5,450,673 $ 2,803,618
Shares issued in connection with the Fund reorganization 12,877,367 0
Proceeds from reinvested dividends 944,562 915,428
Cost of shares redeemed (3,071,400) (4,868,195)
-------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 16,201,202 $ (1,149,149)
-------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ 15,624,270 $ (1,483,176)

NET ASSETS, BEGINNING OF PERIOD 26,318,378 27,801,554
-------------------------------------------------
NET ASSETS, END OF PERIOD $ 41,942,648 $ 26,318,378
==================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.

Notes to Financial Statements July 30, 1999

Note 1. ORGANIZATION

Business Operations - The Nebraska Municipal Fund (the "Fund") is an
investment portfolio of Ranson Managed Portfolios (the "Trust") registered
under the Investment Company Act of 1940, as amended, as a non-diversified,
open-end management investment company. The Trust may offer multiple
portfolios; currently four portfolios are offered. Ranson Managed Portfolios
is an unincorporated business trust organized under Massachusetts law on
August 10, 1990. The Fund had no operations from that date to November 17,
1993, other than matters relating to organization and registration. On
November 17, 1993, the Fund commenced its Public Offering of capital shares.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal and Nebraska income
taxes as is consistent with preservation of capital. The Fund will seek to
achieve this objective by investing primarily in a portfolio of Nebraska
municipal securities. Shares of the Fund are offered at net asset value plus
a maximum sales charge of 4.25% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund concentrates its investments in a single state. This concentration
may result in the Fund investing a relatively high percentage of its assets in
a limited number of issuers.

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. Organizational costs
were fully amortized at year end July 30, 1999. Accumulated amortization at
July 30, 1999 totaled $27,054.

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 30,
1999, a net capital loss carryforward totaling $1,737,315, which may be
used to offset capital gains realized during subsequent years through July 31,
2007.

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
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.

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 30, 1999, there were unlimited shares of no par authorized;
3,808,712 and 2,365,171 shares were outstanding at July 30, 1999 and
July 31, 1998, respectively.

Transactions in capital shares were as follows:

Shares
------------------------------
For The For The
Year Ended Year Ended
July 30, 1999 July 31, 1998
------------------------------
Shares sold 484,495 251,824
Shares issued in connection with the Fund
Reorganization 1,148,739 0
Shares issued on reinvestment of dividends 84,149 82,101
Shares redeemed (273,842) (436,786)
------------------------------
Net increase (decrease) 1,443,541 (102,861)
==============================
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 $107,311 of
investment advisory fees after partial waiver for the year ended July 30,
1999. The Fund has a payable to Ranson Capital Corporation of $14,151 at
July 30, 1999 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 30, 1999, no commissions were
earned by ND Capital, Inc.

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. Ranson has elected to waive all operation service fees
for the year ended July 30, 1999.

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 $42,192 of transfer agency fees for
the year ended July 30, 1999. The Fund has a payable to ND Resources, Inc.
of $4,508 at July 30, 1999 for transfer agency fees. 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 $39,190 of accounting service fees for the year ended
July 30, 1999. The Fund has a payable to ND Resources, Inc. of $3,753 at
July 30, 1999 for accounting service fees.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $8,089,878 and $3,806,481,
respectively, for the year ended July 30, 1999.

Note 6. INVESTMENT IN SECURITIES

At July 30, 1999, the aggregate cost of securities for federal income tax
purposes was $40,683,661, and the net unrealized appreciation of investments
based on the cost was $829,257, which is comprised of $1,122,455 aggregate
gross unrealized appreciation and $293,198 aggregate gross unrealized
depreciation.

Note 7. PLAN OF REORGANIZATION

An agreement and plan of reorganization was approved effective May 21, 1999
by the shareholders of the Lancaster Nebraska Tax Free Fund (Lancaster).
Pursuant to the agreement, the Fund, in exchange for the assets of Lancaster,
assumed certain liabilities of Lancaster and issued shares of the Fund to
shareholders of Lancaster on a pro rata basis.

On the date of exchange, 1,148,739 shares of the Fund were issued to the
shareholders of Lancaster for net assets of $12,877,367, including $434,196
of unrealized appreciation, at $11.21 per share. As of May 21, 1999,
Lancaster had an accumulated undistributed net realized loss on investments
of $406,497. The combined net assets of the Fund and Lancaster immediately
after the reorganization was $42,459,680

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

For the For the For the For The For The
Year Ended Year Ended Year Ended Year Ended Year Ended
July 30, 1999 July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.13 $ 11.26 $ 11.00 $ 10.95 $ 10.82
-----------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income $ .54 $ .56 $ .55 $ .57 $ .59
Net realized and unrealized gain
(loss) on investment and
futures transactions (.12) (.13) .26 .05 .13
-----------------------------------------------------------------------------------
Total Income (Loss)
From Investment Operations $ .42 $ .43 $ .81 $ .62 $ .72
------------------------------------------------------------------------------------
Less Distributions:
Dividends from net
investment income $ (.54) $ (.56) $ (.55) $ (.57) $ (.59)
Distributions from net
capital gains .00 .00 .00 .00 .00
------------------------------------------------------------------------------------
Total Distributions $ (.54) $ (.56) $ (.55) $ (.57) $ (.59)
-------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.01 $ 11.13 $ 11.26 $ 11.00 $ 10.95
=======================================================================================
Total Return 3.82%(A) 3.95%(A) 7.57%(A) 5.73%(A) 7.14%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $41,943 $26,318 $27,802 $18,077 $14,445
Ratio of net expenses
(after expense assumption)
to average net assets 0.70%(B) 0.63%(B) 0.71%(B) 0.62%(B) 0.35%(B)
Ratio of net investment
income to average net assets 4.83% 5.06% 5.03% 5.13% 5.63%
Portfolio turnover rate 12.58% 26.36% 42.84% 27.20% 140.00%
</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed/waived expenses of $119,949, $51,233, $124,394,
$129,053, and $146,913, respectively. If the expenses had not been
assumed/waived, the annualized ratios of total expenses to average
net assets would have been 1.10%, 0.81%, 1.22%, 1.38%, and
1.66%, respectively.

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

Tax Information For The Year Ended July 30, 1999 (Unaudited)

Dividends and Distributions Per Share
- -------------------------------------
<TABLE>
<CAPTION>
From Net From Net From Net
To Shareholders of Investment Realized Short- Realized Long-
Record Payment Date Income Term Gains Term Gains
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 28, 1998 August 31, 1998 $ .046 - -
September 29, 1998 September 30, 1998 .045 - -
October 29, 1998 October 30, 1998 .045 - -
November 27, 1998 November 30, 1998 .045 - -
December 30, 1998 December 31, 1998 .045 - -
January 28, 1999 January 29, 1999 .044 - -
February 25, 1999 February 26, 1999 .041 - -
March 30, 1999 March 31, 1999 .051 - -
April 29, 1999 April 30, 1999 .045 - -
May 27, 1999 May 28, 1999 .042 - -
June 29, 1999 June 30, 1999 .049 - -
July 29, 1999 July 30, 1999 .045 - -

</TABLE>

Shareholders should consult their tax advisors.

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 30,
1999, the related statement of operations for the year ended July 30, 1999,
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 four 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 the period ended July 31,
1995, was audited by other auditors whose report dated September 11,
1995, expressed an unqualified opinion on those financial highlights.

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 30, 1999, by correspondence with
the custodian. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Nebraska Municipal Fund of the Ranson Managed Portfolio, as of July 30, 1999,
the results of its operations for the year ended July 30, 1999, 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 four years in the period then ended,
in conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1999

Dear Shareholder:

We are pleased to enclose the annual report of the operations of The Oklahoma
Municipal Fund for the year ended July 30, 1999. The Fund's portfolio and
related financial statements are presented within for your review.

As we end the first half of 1999, stabilizing global economies and the U.S.
economy growing at what many economists believe is an unsustainable pace has
lead the Federal Reserve to raise short-term interest rates a quarter of a
percentage point. Strong consumer spending and a tight labor market were
the primary factors for Mr. Greenspan's pre-emptive strike against a rise in
inflation. Typically, a higher fed funds rate - the rate at which banks
borrow from each other overnight - means higher rates for things such as
mortgage loans, credit cards and savings accounts.

Anticipations of a Federal Reserve tightening have seen yields on the
benchmark 30-year Treasury bond rise from a January yield of 5.07% to 6.10%.

Tax-free municipal yields have also risen from 5.06% to 5.41% on AAA
rated bonds. This slower rise compared to Treasuries can be attributed to
investor demand for tax-free bonds.

The Oklahoma Municipal Fund began the year at $11.68 and closed the year at
$11.61. In anticipation of stronger economic growth, the Oklahoma Municipal
Fund, at times during the period utilized a defensive position in U.S.
Treasury futures. Share price was tempered as yields on U.S. Treasuries
declined in the latter part of 1998 and stabilized as yields on U.S.
Treasuries rose throughout the first half of 1999. Stability of share
price is the primary objective of a defensive position.

The Fund continues to invest in high-grade Oklahoma double exempt bonds.
Diversification remains an important strategy for the Fund. Purchases
throughout the year in the primary and secondary markets include Oklahoma
Housing Authority, Oklahoma State University, and Oklahoma State Industrial
Finance bonds.

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.

Coupon Rate or Face Rate
The rate of interest payable annually, 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.

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.

Portfolio Market Sectors
(as a % of Net Assets)
- ------------------------
[pie chart]
S-School 38.4
HC-Health Care 19.6
H-Housing 9.5
GO-General Obligation 7.3
U-Utilities 7.2
T-Transportation 5.9
O-Other 5.3
W/S-Water/Sewer 3.6
I-Industrial 3.2

Market sectors are breakdowns of the Fund's portfolio holdings into
specific investment classes.
These percentages are subject to change

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

Comparison of change in value of a $10,000 investment in The
Oklahoma Municipal Fund and the Lehman Brothers Municipal Bond Index

The Oklahoma Municipal The Oklahoma Municipal Lehman Brothers
Fund w/o sales charge Fund w/ max sales charge Municipal 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
1999 $11,662 $11,166 $12,024

Average Annual Total Returns
For periods ending July 30, 1999
--------------------------------
Since Inception
1 year 5 year (September 25, 1996)
- ----------------------------------------------------------------------------
Without sales charge 4.25% NA 5.55%
With sales charge (4.25%) (.18)% NA 3.95%

Putting Performance into Perspective
Returns are historical and are not a guarantee of future results. 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. 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
- --------------
07-31-98 NAV (share value) $11.68
07-30-99 NAV $11.61
Average Maturity 20.1 years
Number of Issues 50
Total Net Assets $16,135,191

<TABLE>
<CAPTION
Schedule of Investments July 30, 1999

Name of Issuer Rating
Percentages represent the market value of each investment (Unaudited) Coupon Maturity Principal Market
category to total net assets Moodys/S&P Rate Amount Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>

OKLAHOMA MUNICIPAL BONDS (97.7%)

Eastern OK Board of Regents (State College) Student Facs. Rev. NR/NR 6.100% 06/01/17 $ 150,000 $ 152,931
Edmond Economic Dev. Auth., OK. Student Housing Rev. Baa-3/NR 5.375 12/01/19 100,000 98,723
Edmond Economic Dev. Auth., OK. Student Housing Rev. Baa-3/NR 5.500 12/01/28 865,000 843,479
Grand River Dam Auth. Rev. Ref. A/A- 5.000 06/01/12 135,000 134,865
*Grand River Dam Auth., OK Rev. AMBAC Aaa/AAA 6.250 06/01/11 210,000 240,469
Grand River Dam Auth., OK Rev. Ref. AMBAC Aaa/AAA 5.500 06/01/13 290,000 311,031
OK Agric. & Mech. Coll. (Univ. of OK) Mult. Facs. Rev. AMBAC Aaa/NR 4.900 05/01/17 590,000 578,884
OK Agric. & Mech. Coll. (OK State Univ.) Athl. Facs. AMBAC Aaa/NR 5.000 08/01/24 400,000 390,056
OK Agric. & Mech. Coll. (OK State Univ.) Util. Syst. FGIC Aaa/AAA 5.000 07/01/13 600,000 600,954
OK Capital Impvt. Auth. (Dept. of Corrections) Rev. AMBAC Aaa/AAA 5.000 05/01/18 500,000 487,695
OK Capital Impvt. Auth. (State Office Building) Rev. A/NR 5.500 10/01/16 105,000 107,099
OK Colleges Brd. of Regents (NE State Univ. Ctr.) Rev. FSA Aaa/AAA 5.100 03/01/16 140,000 139,511
OK Colleges Brd. of Regents (NE State Univ. Ctr.) Rev. FSA Aaa/AAA 5.150 03/01/21 100,000 98,791
OK Devl. Finance Auth. (Central OK Univ.) Aa-3/NR 5.300 12/01/18 100,000 99,115
OK Devl. Finance Auth. (DHS Cty. Office Bldg.) Rev. A/NR 5.250 11/01/11 120,000 122,753
OK Devl. Finance Auth. (DHS Cty. Office Bldg.) Rev. A/NR 5.300 11/01/12 275,000 282,056
OK Devl. Finance Auth. (Hillcrest Healthcare Syst.) Rev. Ref. Baa/BBB+ 5.625 08/15/19 1,000,000 968,800
OK Devl. Finance Auth. (Hillcrest Healthcare Syst.) Rev. Ref. Baa/BBB+ 5.625 08/15/29 295,000 286,448
OK Devl. Finance Auth. (Langston Univ. Athletic Facs.) Rev. NR/NR 5.250 12/01/23 500,000 476,680
*OK Devl. Finance Auth. (OK City Univ.) Rev. Ref. AMBAC Aaa/AAA 5.125 06/01/17 555,000 547,241
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 6.200 11/01/07 100,000 108,320
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 6.500 11/01/13 75,000 81,827
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 5.750 03/01/13 400,000 404,976
#OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev. NR/NR 6.000 03/01/18 600,000 601,620
OK Devl. Finance Auth. (St. Ann's Retire.Village) Rev. MBIA Aaa/NR 5.000 12/01/28 1,000,000 944,950
*OK Devl. Finance Auth. (Tulsa Vo Tech Dist. Proj.) Rev. AMBAC Aaa/AAA 5.100 08/01/15 750,000 747,540
OK Devl. Finance Auth. Facs. (Univ. of OK-Norman) Rev. FSA Aaa/AAA 5.625 07/01/13 50,000 52,573
OK Devl. Finance Auth. Facs. (OK State Univ.) Rev. FSA Aaa/NR 5.000 07/01/18 70,000 68,525
OK Housing Finance Agency Single Family GNMA Aaa/NR 5.375 03/01/20 800,000 797,872
OK Housing Finance Agency Single Family GNMA/FNMA Aaa/NR 5.150 09/01/20 750,000 734,857
OK State Indl. Finance Auth. G.O. Aa-3/NR 5.300 09/01/11 50,000 50,950
OK State Indl. Finance Auth. G.O. Aa-3/NR 5.400 09/01/12 50,000 51,096
OK State Indl. Finance Auth. G.O. Aa-3/NR 5.000 04/01/13 400,000 394,768
OK State Municipal Power Auth. Rev. MBIA Aaa/AAA 5.875 01/01/12 100,000 108,466
OK State Municipal Power Auth. Rev. MBIA Aaa/AAA 5.750 01/01/24 340,000 368,472
OK State Student Loan Auth. A/NR 6.350 09/01/25 100,000 104,650
OK State Turnpike Auth. Rev. AMBAC Aaa/AAA 5.500 01/01/22 200,000 200,340
OK State Turnpike Auth. Rev. FGIC Aaa/AAA 5.000 01/01/14 250,000 251,283
OK State Turnpike Auth. Rev. FGIC Aaa/AAA 5.250 01/01/28 250,000 250,103
OK State Turnpike Auth. Rev. FGIC Aaa/AAA 5.000 01/01/28 250,000 243,448
OK State Unlimited Tax G.O. Aa-3/AA 5.200 07/15/16 450,000 450,635
OK State Unlimited Tax G.O. Aa-3/AA 5.200 07/15/18 145,000 142,802
OK State Unlimited Tax G.O. Aa-3/AA 5.100 07/15/13 90,000 90,833
OK State Water (Loan Program) Rev. NR/AA 6.250 10/01/12 50,000 54,110
OK State Water (Loan Program) Rev. NR/AA 5.400 09/01/15 105,000 108,470
*OK State Water (Loan Program) Rev. NR/AA 5.100 09/01/16 415,000 413,352
Oklahoma Cnty, OK Finance Auth. (Epworth Villa) Rev. Ref. NR/NR 6.500 04/01/15 200,000 198,616
Oklahoma Cnty, OK Finance Auth. (Epworth Villa) Rev. Ref. NR/NR 7.000 04/01/22 200,000 198,102
Oklahoma Cnty, OK Indl. Auth. (Benevolent Association) Ref. Baa-1/NR 6.150 01/01/11 100,000 105,399
Oklahoma Cnty, OK Indl. Auth. (Benevolent Association) Ref. Baa-1/NR 5.500 02/01/29 500,000 460,680
-----------
TOTAL OKLAHOMA MUNICIPAL BONDS (COST: $15,904,989) $ 15,757,216
------------
SHORT-TERM SECURITIES (.8%)
Federated Tax-Free Fund 73 $ 66,679
Federated Intermediate Municipal Trust 78 60,058
------------
TOTAL SHORT-TERM SECURITIES (COST: $126,679) $ 126,737
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $16,031,668) $ 15,883,953
OTHER ASSETS LESS LIABILITIES 251,238
------------
NET ASSETS $ 16,135,191
============

</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 30, 1999

Statement of Assets and Liabilities July 30, 1999
- -------------------------------------------------
<TABLE>
<CAPTION>

<S> <C>
Assets
Investment in securities, at value (Cost: $16,031,668) $ 15,883,953
Receivable for fund shares sold 20,233
Accrued interest receivable 238,010
Accrued dividends receivable 683
Deferred organization costs 15,192
Variation margin on futures 66,752
---------------
Total Assets $ 16,224,823
---------------
Liabilities
Payable for fund shares redeemed $ 10,000
Dividends payable 66,895
Accrued expenses 12,737
---------------
Total Liabilities $ 89,632
---------------
Net Assets $ 16,135,191
===============
Net assets are represented by:
Paid-in capital $ 16,247,377
Accumulated undistributed net realized gain
(loss) on investments 35,529
Unrealized appreciation on investments (147,715)
---------------
Total amount representing net assets applicable to
1,389,571 outstanding shares of no par common
stock (unlimited shares authorized) $ 16,135,191
===============
Net asset value per share $ 11.61
===============
The accompanying notes are an integral part of these financial statements.

Statement of Operations For the year ended July 30, 1999
- --------------------------------------------------------

INVESTMENT INCOME
Interest $ 757,441
Dividends 14,910
---------------
Total Investment Income $ 772,351
---------------
EXPENSES
Investment advisory fees 75,641
Service fees 37,821
Transfer agent fees 23,052
Accounting service fees 31,978
Custodian fees 2,313
Registration and filing fees 1,880
Transfer agent out of pockets 803
Trustees fees 2,173
Reports to shareholders 1,655
Amortization of organizational costs 5,310
Professional fees 3,933
Insurance expense 586
----------------
Total Expenses $ 187,145
Less expenses waived or absorbed
by the Fund's manager (133,089)
----------------
Total Net Expenses $ 54,056
----------------
NET INVESTMENT INCOME $ 718,295
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) on:
Investment transactions $ 13,809
Futures transactions 89,865
Net change in unrealized appreciation (depreciation) of:
Investments (255,507)
Futures (1,396)
---------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures $ (153,229)
---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 565,066
===============

</TABLE>

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

Financial Statements July 30, 1999

Statement of Changes in Net Assets
For the year ended July 30, 1999 and the year ended July 31, 1998
- -------------------------------------------------------------------

For The For The
Year Ended Year Ended
July 30,1999 July 31, 1998
--------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 718,295 $ 522,753
Net realized gain (loss) on investment and futures transactions 103,674 (68,145)
Net change in unrealized appreciation (depreciation) on investments
and futures (256,903) (30,903)
-------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 565,066 $ 423,705
-------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.56 and $.60 per share,
respectively) $ (718,295) $ (522,753)
Distributions from net realized gain on investment and
Futures transactions ($.00 and $.02 per share, respectively) 0 (19,246)
-------------------------------------
Total Dividends and Distributions $ (718,295) $ (541,999)
-------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 8,624,247 $ 8,032,955
Proceeds from reinvested dividends 441,883 294,779
Cost of shares redeemed (4,112,946) (3,464,879)
-------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ 4,953,184 $ 4,862,855
-------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS $ 4,799,955 $ 4,744,561
NET ASSETS, BEGINNING OF PERIOD 11,335,236 6,590,675
-------------------------------------
NET ASSETS, END OF PERIOD $ 16,135,191 $ 11,335,236
=====================================
</TABLE>

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

Notes to Financial Statements July 30, 1999

Note 1. ORGANIZATION

Business Operations - The Oklahoma Municipal Fund (the "Fund") is an
investment portfolio of Ranson Managed Portfolios (the "Trust") registered
under the Investment Company Act of 1940, as amended, as a non-diversified,
open-end management investment company. The Trust may offer multiple
portfolios; currently four portfolios are offered. Ranson Managed Portfolios
is an unincorporated business trust organized under Massachusetts law on
August 10, 1990. The Fund had no operations from that date to September
25, 1996, other than matters relating to organization and registration. On
September 25, 1996, the Fund commenced its Public Offering of capital shares.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal income tax and, to
a certain extent, Oklahoma income tax, as is consistent with preservation of
capital. Up to 30% of the Fund's total assets may be invested in Oklahoma
municipal securities which are subject to Oklahoma state income taxes.
The Fund will seek to achieve this objective by investing primarily in a
portfolio of Oklahoma municipal securities. Shares of the Fund are offered
at net asset value plus a maximum sales charge of 4.25% of the offering price.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, and
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 30, 1999,
totaled $11,358, leaving an unamortized balance of $15,192.

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.

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 contracts
to hedge against changes in the values of tax-exempt municipal securities the
Fund owns or expects to purchase.

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

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

Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 30, 1999, there were unlimited shares of no par authorized; on
July 30, 1999, and July 31, 1998, there were 1,389,571 and 970,625 shares
outstanding, respectively.

Transactions in capital shares were as follows:

Shares
-------------
For The For The
Year Ended Year Ended
July 30, 1999 July 31, 1998
-------------------------------
Shares sold 730,053 684,086
Shares issued on reinvestment of dividends 37,403 25,084
Shares redeemed (348,510) (294,163)
--------------------------------
Net increase (decrease) 418,946 415,007
================================

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 computed at an annual rate of 0.50% of the Fund's average
daily net assets. The Fund has recognized $4,998 of investment advisory fees
after partial waiver for the year ended July 30, 1999. The Fund has a payable
to Ranson Capital Corporation of $3,223 at July 30, 1999 for investment
advisory fees. Certain officers and trustees of the Fund are also officers
and directors of the investment adviser.

ND Resources, Inc. (the transfer agent) provides shareholder services for a
monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million
of net assets, 0.13% of the Fund's net assets on the next $15 million,
0.11% of the Fund's net assets on the next $15 million, 0.10% of the Fund's
net assets on the next $10 million, and 0.09% of the Fund's net assets in
excess of $50 million. The Fund has recognized $4,114 of transfer agent fees
and expenses after partial waiver for the year ended July 30, 1999. The Fund
has a payable to ND Resources, Inc. of $2,026 at July 30, 1999 for transfer
agent fees. 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
$26,292 of accounting service fees after partial waiver for the year ended
July 30, 1999. The Fund has a payable to ND Resources, Inc. of $2,694 at
July 30, 1999 for accounting service fees.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $9,665,620 and $4,692,834,
respectively, for the year ended July 30, 1999.

Note 6. INVESTMENT IN SECURITIES

At July 30, 1999, the aggregate cost of securities for federal income tax
purposes was $16,031,668, and the net unrealized depreciation of
investments based on the cost was $147,715, which is comprised of $91,554
aggregate gross unrealized appreciation and $239,269 aggregate gross unrealized
depreciation.

<TABLE>
<CAPTION>
Financial Highlights Selected per share data and ratios for the period indicated
----------------------------------------------------------------------------
For The Period
For the For the Since Inception
Year Ended Year Ended (Sept. 25, 1996)
July 30, 1999 July 31, 1998 Through July 31, 1997
-----------------------------------------------------------------------------
<S> <C> <C> <C>

NET ASSET VALUE, BEGINNING OF PERIOD $ 11.68 $ 11.86 $ 11.49
-------------------------------------------------------------------------
Income from Investment Operations:
Net investment income $ .56 $ .60 $ .50
Net realized and unrealized gain (loss)
on investment and futures transactions (.07) (.16) .37
-------------------------------------------------------------------------
Total Income (Loss) From Investment
Operations $ .49 $ .44 $ .87
-------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ (.56) $ (.60) $ (.50)
Distributions from net capital gains .00 (.02) .00
-------------------------------------------------------------------------
Total Distributions $ (.56) $ (.62) $ (.50)
-------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.61 $ 11.68 $ 11.86
=========================================================================
Total Return 4.25%(A) 3.81%(A) 7.79%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $16,135 $11,335 $6,591
Ratio of net expenses
(after expense assumption) to average
net assets 0.36%(C) 0.20%(C) 0.11%(C)
Ratio of net investment income to
average net assets 4.74% 5.08% 3.70%
Portfolio turnover rate 32.09% 53.32% 63.70%
</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) Ratio was annualized.
During the periods indicated above, ND Holdings, Inc. or Ranson Capital
Corporation assumed/waived expenses of $133,089, $53,180, and $34,609,
respectively. If the expenses had not been assumed/waived, the annualized
ratio of total expenses to average net assets would have been 1.23%,
0.71% and 2.01%, respectively.

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

Tax Information For The Year Ended July 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Dividends and Distributions Per Share
-------------------------------------
From Net From Net From Net
To Shareholders of Investment Realized Short- Realized Long-
Record Payment Date Income Term Gains Term Gains
- ------------------ ------------------ ---------- --------------- --------------
<S> <C> <C> <C> <C>

August 28, 1998 August 31, 1998 $ .047 - -
September 29, 1998 September 30, 1998 .047 - -
October 29, 1998 October 30, 1998 .047 - -
November 27, 1998 November 30, 1998 .046 - -
December 30, 1998 December 31, 1998 .046 - -
January 28, 1999 January 29, 1999 .045 - -
February 25, 1999 February 26, 1999 .043 - -
March 30, 1999 March 31, 1999 .053 - -
April 29, 1999 April 30, 1999 .048 - -
May 27, 1999 May 28, 1999 .044 - -
June 29, 1999 June 30, 1999 .051 - -
July 29, 1999 July 30, 1999 .048 - -
</TABLE>
Shareholders should consult their tax advisors.

INDEPENDENT AUDITOR'S REPORT

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

We have audited the accompanying statement of assets and liabilities of
The Oklahoma Municipal Fund, (one of the portfolio's constituting the
Ranson Managed Portfolios), including the schedule of investments, as of
July 30, 1999, the related statement of operations for the year ended July 30,
1999, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for the years ended July 30,
1999, July 31, 1998, and for the 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 30, 1999, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Oklahoma Municipal Fund of the Ranson Managed Portfolios, as of July 30, 1999,
the results of its operations for the year ended July 30, 1999, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for the years ended July 30, 1999, July 31, 1998, and for
the period from inception (September 25, 1996) through July 31, 1997, in
conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1999

The Illinois Municipal Fund

Financial Statements July 6, 1999

Statement of Assets and Liabilities July 6, 1999
- ------------------------------------------------
<TABLE>
<CAPTION>

Assets
<S> <C>
Total Assets $ 0
-----------
Liabilities
Total Liabilities $ 0
-----------

Net Assets $ 0
===========
Net assets are represented by:
Paid-in capital $ 3,404
Accumulated undistributed net realized gain(loss) on investments (3,404)
-----------
Total amount representing net assets applicable to
0.00 outstanding shares of no par common
stock (unlimited shares authorized) $ 0
===========
Net asset value per share $ 0
===========

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

Statement of Operations For the period from Aug. 1, 1998 through July 2, 1999

INVESTMENT INCOME
Total Investment Income $ 0
------------
EXPENSES
Investment advisory fees 4
Distribution (12b-1) fees 3
Transfer agent fees 200
Accounting service fees 22,118
Professional fees $ 4
Trustees fees 1,321
------------
Total Expenses $ 23,650

Less expenses waived or absorbed
by the Fund's manager (23,650)
------------
Total Net Expenses $ 0
------------
NET INVESTMENT INCOME $ 0
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on
investment transactions $ 0
------------
Net Realized And Unrealized Gain (Loss) On
Investments $ 0
------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 0
============

</TABLE>

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

Financial Statements July 2, 1999

Statement of Changes in Net Assets
For the period from Aug. 1 through July 6, 1999 and the period since inception
(October 11, 1997) through July 31, 1998

For the period The Period
from Since Inception
Aug.1 through (October 11, 1997)
July 6, 1999 Through July 31, 1998
------------------- ----------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 0 $ 3,307
Net realized gain (loss) on investment transactions 0 (3,404)
Net unrealized appreciation (depreciation) on investments 0 0
------------------- ----------------------
Net Increase (Decrease) in Net Assets Resulting From Operations $ 0 $ (97)
------------------- ----------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income $ 0 $ (3,307)
Distributions from net realized gain on
investment transactions 0 0
------------------- ----------------------
Total Dividends and Distributions $ 0 $ (3,307)
------------------- ----------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares $ 0 $ 138,297
Proceeds from reinvested dividends 0 229
Cost of shares redeemed (979) (134,143)
------------------- ----------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions $ (979) $ 4,383
------------------- ----------------------
TOTAL INCREASE IN NET ASSETS $ (979) $ 979

NET ASSETS, BEGINNING OF PERIOD $ 979 $ 0
------------------- ----------------------
NET ASSETS, END OF PERIOD $ 0 $ 979
=================== =======================

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

Notes to Financial Statements July 6, 1999

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 four portfolios are offered. Ranson Managed Portfolios
is an unincorporated business trust organized under Massachusetts law on
August 10, 1990. The Fund had no operations from that date to 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. As of
July 6, 1999, there were no shares owned in the Fund.

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 6,
1999, a net capital loss carry forward totaling $3,404.

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 contracts
to hedge against changes in the values of tax-exempt municipal securities the
Fund owns or expects to purchase.

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

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

Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates

Note 3. CAPITAL SHARE TRANSACTIONS

As of July 2, 1999, there were unlimited shares of no par authorized; 0 shares
and 88 shares were outstanding as of July 2, 1999, and July 31, 1998,
respectively.
Transactions in capital shares were as follows:

Shares
------------------------------------
For The For the Period
Period From Since Inception
Aug. 1 through (October 11, 1997)
July 6, 1999 Through July 31, 1998
------------------------------------
Shares sold 0 11,876
Shares issued on reinvestment of dividends 0 19
Shares redeemed (88) (11,807)
------------------------------------
Net increase (88) 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 6, 1999. 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 6, 1999. 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/waived all transfer agent and accounting service fees for the period
ended July 6, 1999.

Note 5. INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $0 and $0 respectively, for
the period ended July 6, 1999.

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

For the period from For The Period Since Inception
Aug. 1 through July 2, 1999 (October 11, 1997) Through July 31, 1998
--------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.10 $ 11.49
--------------------------------------------------------------------------
Income from Investment Operations:
Net Investment Income $ .00 $ .29
Net realized and unrealized gain
(loss) on investments .00 (.39)
--------------------------------------------------------------------------
Total From Investment Operations $ .00 $ (.10)
--------------------------------------------------------------------------
Less Distributions:
Dividends from net investment income $ .00 $ (.29)
Distributions from net capital gains .00 .00
--------------------------------------------------------------------------
Total Distributions .00 $ (.29)
--------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.10 $ 11.10
============================================================================
Total Return 0.00%(A)(B) (.52)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 0 $ 1
Ratio of net expenses (after expense assumption)
to average net assets 0.00%(B) 0.00%(B)(C)
Ratio of net investment income to average net assets 0.00%(B) 4.18%(B)
Portfolio turnover rate 0.00% 261.63%
</TABLE>

(A) Excludes maximum sales charge of 4.25%.
(B) Ratio was annualized.
(C) During the periods ended above, ND Holdings, Inc. assumed/waived expenses
of $23,650 and $26,588. If the expenses had not been assumed/waived, the
annualized ratio of total expenses to average net assets would have
been 2,418%, and 33.60%.

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