RANSON MANAGED PORTFOLIOS, N-30D, 2000-09-25

RANSON MANAGED PORTFOLIOS
N-30D, 2000-09-25

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THE KANSAS MUNICIPAL FUND
-------------------------

Dear Shareholder:

Enclosed is the annual report of the operations of The Kansas Municipal Fund,
the "Fund," for the year ended July 31, 2000. The Fund's portfolio and related
financial statements are presented within for your review.

As July 2000 comes to a close, the Federal Reserve remains vigilant of a strong
U.S. economy, raising the fed funds rate 1.75% to a current level of 6.50%.
Strong consumer spending, tight labor markets, and an increasing CPI
(Consumer Price Index) remain key factors in the Federal Reserve's actions.

On the other hand, certain sectors of the economy are showing signs of slowing.
Housing starts, retail sales, corporate profits, and a cautious equity market
reflect the actions taken by Mr. Greenspan and his colleagues.

Tax-free investments continue to offer investors attractive yields in the wake
of rising interest rates. High-grade municipal bonds are currently
trading at 90-100% of taxable Treasuries. While no one knows what the Federal
Reserve's next move will be, history tells us that municipal bonds at current
levels have proven to be attractive investments.

The Kansas Municipal Fund began the year at $11.98 and ended the year at
$11.58. In anticipation of Federal Reserve actions, the Fund utilized a
defensive position in U.S. Treasury futures. Share price was stabilized as
yields on U.S. Treasuries rose on Federal Reserve rate hikes and tempered as
signs of a slowing economy rallied the treasury market. Stability of share
price is the primary objective of a defensive position.

Diversification remains an important strategy of the Fund. Throughout the
year, some of the purchases in the primary and secondary markets included
University of Kansas Hospital and Kansas Development Finance Authority for the
Department of Administration.

The investment objective of the Fund is to provide as high a 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.

<TABLE>
<CAPTION>
Portfolio Quality Ratings
(based on Total Long-Term Investments)
--------------------------------------
[pie chart]
<S> <C>
AAA 41.5
AA 12.9
A 23.5
BBB 8.5
NR 13.6
</TABLE>

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.

<TABLE>
<CAPTION>
Portfolio Market Sectors
(as a % of Net Assets)
------------------------
[pie chart]
<S> <C>
H-Housing 38.3
HC-Health Care 30.6
U-Utilities 14.7
O-Other 8.1
GO-General Obligation 3.9
I-Industrial 2.2
G-Government 2.2
</TABLE>

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
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Kansas Municipal Kansas Municipal Lehman Brothers
Fund w/o sales charge Fund w/ max sales charge Municipal Bond Index
------------------------------------------------------------------------------
<S> <C> <C> <C>
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
2000 $17,222 $16,490 $19,507
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
----------------------------
<TABLE>
<CATION>
For periods ending July 31, 2000
-----------------------------------
<S> <C> <C> <C> <C>
Since Inception
1 year 5 year 10 year (November 15, 1990)
----------------------------------------------------------------------------
Without sales charge 1.69% 4.25% N/A 5.75%
With sales charge (4.25%) (2.63)% 3.35% N/A 5.28%
</TABLE>

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 periods 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
--------------
07-30-1999 NAV (share value) $11.98
07-31-2000 NAV $11.58
Average Maturity 20.7 years
Number of Issues 74
Total Net Assets $103,554,794

SCHEDULE OF INVESTMENTS July 31, 2000
--------------------------------------
<TABLE>
<CAPTION>
NAME OF ISSUER RATING
PERCENTAGES REPRESENT THE MARKET VALUE (UNAUDITED) COUPON PRINCIPAL MARKET
OF EACH INVESTMENT CATEGORY TO TOTAL NET ASSETS MOODY'S/S&P RATE MATURITY AMOUNT VALUE
-----------------------------------------------------------------------------------------------------------------------------
KANSAS MUNICIPAL BONDS (97.8%)
<S> <C> <C> <C> <C> <C>
*Burlington, KS (Gas & Elec.) Rev. Ref. MBIA............ Aaa/AAA 7.000% 06/01/31 $ 4,000,000 $ 4,225,600
Douglas Cty., KS (Cottonwood Inc. Project) Indl. Rev.... NR/NR 6.400 07/01/10 375,000 375,352
Douglas Cty., KS (Cottonwood Inc. Project) Indl. Rev.... NR/NR 6.500 07/01/14 750,000 731,587
Douglas Cty., KS USD #497 (Lawrence) G.O................Aa-3/NR 6.000 09/01/15 1,000,000 1,050,200
Ford Cty., KS Single Family Mrtge. Rev. Ref. ........... A-1/NR 7.900 08/01/10 265,000 279,601
Gardner, KS Elec. Util. Rev............................. NR/NR 7.000 11/01/09 1,000,000 1,032,860
Garnett, KS (Garnett Hsg. Auth. Project) Rev............ NR/NR 5.900 10/01/18 500,000 478,960
Hiawatha, KS (WalMart Stores) Indl. Rev. Ref............ NR/AA 6.750 01/01/06 430,000 437,521
Hutchinson, KS Single Family Mrtge. Rev. Ref............ A/NR 8.875 12/01/12 1,210,000 1,270,778
Johnson Cty., KS Internal Impvt. & Ref..................Aa-1/NR 6.125 09/01/12 1,370,000 1,431,718
Johnson Cty., KS Single Family Mrtge. Rev............... A/NR 7.100 05/01/12 540,000 569,144
Johnson Cty., KS Water Dist. #001 Rev. Ref..............Aa-1/AA+ 6.500 12/01/13 500,000 517,695
Kansas City, KS Mrtge. Rev. GNMA........................ Aaa/NR 5.900 11/01/27 1,495,000 1,466,535
*Kansas City, KS Util. Syst. Ref. & Impvt. AMBAC........ Aaa/AAA 6.300 09/01/16 580,000 599,865
*Kansas City, KS Util. Syst. Ref. & Impvt. FGIC......... Aaa/AAA 6.375 09/01/23 2,525,000 2,727,833
*Kansas City, KS Util. Syst. Ref. & Impvt. FGIC......... Aaa/AAA 6.375 09/01/23 5,225,000 5,527,214
Kansas City/Leavenworth Cty./Lenexa,
KS Mrtge. Rev. GNMA..................................... NR/AAA 7.850 11/01/10 380,000 385,692
KS Department of Transportation Highway Rev............. Aa/AA+ 6.000 09/01/12 700,000 737,632
KS Devl. Finance Auth. (Board of Regents) AMBAC......... Aaa/AAA 5.875 06/01/21 750,000 760,260
KS Devl. Finance Auth. (Dept. Admin. 7th
& Harrison PJ) AMBAC.................................... Aaa/AAA 5.750 12/01/27 2,250,000 2,248,402
KS Devl. Finance Auth. (Highway Patrol
Training Facs.) Rev..................................... NR/NR 6.300 12/01/05 200,000 206,962
KS Devl. Finance Auth. (Indian Ridge Apts.)............. NR/NR 6.000 01/01/28 1,120,000 1,050,829
KS Devl. Finance Auth. (Jackson Co.) Hlth. Rev..........Aa-3/NR 5.375 09/01/27 500,000 459,570
KS Devl. Finance Auth. (Lewis Field Stadium) Rev........ NR/NR 6.000 04/01/08 500,000 503,200
#KS Devl. Finance Auth. (Martin Creek Place) Rev. FHA... Aa/NR 6.600 08/01/34 1,900,000 1,947,044
KS Devl. Finance Auth. (Martin Creek Place) Rev. FHA.... Aa/NR 6.500 08/01/24 750,000 757,290
KS Devl. Finance Auth. (Oak Ridge Park Apt.)............ NR/NR 6.500 02/01/18 2,035,000 2,018,720
KS Devl. Finance Auth. (Oak Ridge Park Apt.)............ NR/NR 6.625 08/01/29 1,875,000 1,852,369
KS Devl. Finance Auth. (Sec. 8) Rev. Ref. MBIA...........Aaa/AAA 6.400 01/01/24 770,000 788,449
KS Devl. Finance Auth. (Sisters of Charity) Hlth. Rev...Aa-3/AA 6.125 12/01/20 1,000,000 1,009,240
KS Devl. Finance Auth. (Stormont Vail)
Hlth. Care Rev. MBIA.................................... Aaa/AAA 5.800 11/15/21 430,000 429,548
KS Devl. Finance Auth. (Stormont Vail)
Hlth. Care Rev. MBIA.................................... Aaa/AAA 5.800 11/15/16 550,000 561,743
KS Devl. Finance Auth. Multifamily Hsg. Rev............. NR/AAA 6.000 12/01/21 1,975,000 2,009,009
KS Devl. Finance Auth. Water Fund Rev...................Aa-1/AA+ 6.000 11/01/14 500,000 520,395
KS Water Finance Auth. (PWS Dist. #006) Rev............. NR/NR 6.000 05/01/17 255,000 256,374
Lawrence, KS (Memorial Hospital) Rev.................... A-3/NR 6.000 07/01/09 2,000,000 2,087,260
Lawrence, KS (Memorial Hospital) Rev.................... A-3/NR 6.200 07/01/14 1,200,000 1,235,664
Lawrence, KS (Memorial Hospital) Rev.................... A-3/NR 6.200 07/01/19 1,475,000 1,498,158
Lawrence, KS (Memorial Hospital) Rev. ASGUA............. NR/AA 5.750 07/01/24 1,000,000 960,540
Lawrence, KS Multifamily Hsg. (Brandon Woods) Rev. Ref.. NR/A 6.625 04/01/12 2,000,000 2,031,660
Lenexa, KS (Lakeview Village) Hlth. Care Facs. Rev...... NR/BBB- 6.250 05/15/26 8,000,000 7,766,080
*Lenexa, KS Multifamily Hsg. (Barrington Park)
Rev. ASGUA.............................................. NR/AA 6.450 02/01/18 2,500,000 2,561,425
Newton, KS (Newton) Hosp. Rev........................... NR/BBB- 5.700 11/15/18 1,000,000 888,380
Newton, KS (Newton) Hosp. Rev. ACA...................... NR/A 5.750 11/15/24 500,000 469,870
Olathe, KS (Luth. Gd. Sam.) Ref. AMBAC.................. Aaa/AAA 6.000 05/01/19 900,000 923,940
Olathe, KS (Luth. Gd. Sam.) Ref. AMBAC.................. Aaa/AAA 5.875 09/01/16 2,000,000 2,026,900
Olathe, KS Multifamily Hsg. (Bristol Pointe)
Rev. Ref. FNMA.......................................... NR/AAA 5.700 11/01/27 2,210,000 2,134,971
Olathe, KS Multifamily Hsg. (Jefferson Place) Rev. Ref.. NR/A- 5.950 07/01/22 5,060,000 4,978,888
Olathe, KS Multifamily Hsg. (Jefferson Place) Rev. Ref.. NR/A- 6.100 07/01/22 785,000 776,271
Pratt, KS Elec. Util. Syst. Rev. Ref. & Impvt. AMBAC.... Aaa/AAA 6.600 11/01/07 1,000,000 1,114,190
Riley Cty., KS (Colbert Hills Golf Project)............. NR/NR 5.550 05/01/23 2,590,000 2,415,848
Seward Cty., KS G.O. AMBAC.............................. Aaa/AAA 6.000 08/15/13 750,000 761,573
Seward Cty., KS Single Family Mrtge. Rev. Ref...........Aa-1/NR 8.000 05/01/11 220,000 230,435
Shawnee Cty., KS USD #437 (Auburn-Washburn)
G.O. Ref. FGIC.......................................... Aaa/AAA 6.600 09/01/09 500,000 517,550
Shawnee, KS Int. Impvt. G.O. ...........................Aa-3/NR 5.850 12/01/06 235,000 240,711
Shawnee, KS Multifamily Hsg. (Thomasbrooks Apts.)
Rev. FNMA............................................... NR/AAA 5.500 04/01/24 3,200,000 2,994,656
University of Kansas Hosp. Auth. AMBAC.................. Aaa/AAA 5.700 09/01/20 830,000 833,287
University of Kansas Hosp. Auth. AMBAC.................. Aaa/AAA 5.550 09/01/26 1,355,000 1,310,041
Wichita, KS (CSJ Hlth. Sys.) Rev........................ NR/A+ 7.000 11/15/08 640,000 671,757
Wichita, KS (CSJ Hlth. Sys.) Rev........................ NR/A+ 7.200 10/01/15 2,225,000 2,354,540
Wichita, KS (CSJ Hlth. Sys.) Rev. ...................... NR/A+ 7.000 11/15/18 2,350,000 2,487,475
Wichita, KS (Masonic Home) Hlth. Care Rev. ............. NR/NR 6.375 12/01/22 1,275,000 1,199,240
Wichita, KS (St. Francis) Facs. Impvt. & Ref. MBIA...... Aaa/AAA 6.250 10/01/10 1,000,000 1,058,560
Wichita, KS (Via Christi Health System) Rev............. NR/A+ 6.250 11/15/24 1,500,000 1,502,820
Wichita, KS Airport Auth. Facs. Rev. Ref. ASGUA......... NR/AA 7.000 03/01/05 385,000 406,279
Wichita, KS Multifamily Hsg. (Brentwood Apts.) Rev. .... NR/A 5.850 12/01/25 1,000,000 978,790
Wichita, KS Multifamily Hsg. (Broadmoor Chelsea)
Rev. FNMA............................................... NR/AAA 5.650 07/01/16 990,000 987,515
#Wichita, KS Multifamily Hsg. (Broadmoor Chelsea)
Rev. FNMA............................................... NR/AAA 5.700 07/01/22 2,000,000 1,969,700
Wichita, KS Multifamily Hsg. (Cimarron Apts.) FNMA...... Aa/AAA 5.550 10/01/22 1,000,000 971,410
Wichita, KS Multifamily Hsg. (Innes Station Apt. 5) Rev. NR/NR 6.250 03/01/28 1,750,000 1,656,480
Wichita, KS Multifamily Hsg. (Northpark II-A) Rev. GNMA. Aaa/NR 6.125 08/20/28 1,900,000 1,903,572
Wichita, KS Public Building Commission Rev.............. A/AA 5.500 08/01/14 215,000 213,753
Wichita, KS Public Building Commission Rev. AMBAC....... Aaa/AAA 5.750 02/01/17 350,000 353,717
Wichita, KS Single Family Mrtge. Rev. Ref............... A/NR 7.100 09/01/09 590,000 615,453
--------------

KANSAS MUNICIPAL BONDS (COST: $101,284,809) ................................................................. $ 101,314,550
--------------
SHORT-TERM SECURITIES (1.1%)
FEDERATED TAX-FREE FUND 73 (COST: $1,095,294) .............................................................. $ 1,095,294
--------------
TOTAL INVESTMENTS IN SECURITIES (COST: $102,380,103) ........................................................ $ 102,409,844

OTHER ASSETS LESS LIABILITIES................................................................................ 1,144,950
--------------
NET ASSETS................................................................................................... $ 103,554,794
==============
<FN>
* 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.
</FN>
</TABLE>

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

FINANCIAL STATEMENTS JULY 31, 2000
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 2000
-------------------------------------------------
<S> <C>
ASSETS
Investment in securities, at value (cost: $102,380,103)....... $ 102,409,844
Accrued dividends receivable.................................. 2,655
Accrued interest receivable................................... 1,727,022
Prepaid expenses.............................................. 733
Cash.......................................................... 119,644
Receivable due from broker.................................... 216
Receivable for fund shares sold............................... 35,762
----------------
Total Assets............................................... $ 104,295,876
----------------
LIABILITIES
Dividends payable............................................. $ 440,481
Accrued expenses.............................................. 84,899
Payable for fund shares redeemed.............................. 215,702
----------------
Total Liabilities.......................................... $ 741,082
----------------

NET ASSETS......................................................... $ 103,554,794
================

NET ASSETS ARE REPRESENTED BY:
Paid-in capital............................................... $ 109,233,689
Accumulated undistributed net realized gain
(loss) on investments......................................... (5,708,636)
Unrealized appreciation on investments ....................... 29,741
----------------
Total amount representing net assets applicable to
8,945,410 outstanding shares of no par common
stock (unlimited shares authorized) ..................... $ 103,554,794
================
Net asset value per share.......................................... $ 11.58
================
</TABLE>

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

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions....................................... $ (138,230)
Futures transactions.......................................... (393,163)
Net change in unrealized appreciation (depreciation) of :
Investments................................................... (3,354,121)
----------------
Net Realized and Unrealized Gain (Loss) on
Investments and Futures.................................. $ (3,885,514)
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.......................................... $ 1,638,085
================
</TABLE>

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

FINANCIAL STATEMENTS JULY 31, 2000

STATEMENT OF CHANGES IN NET ASSETS
For the year ended July 31, 2000 and the year ended July 30, 1999
-----------------------------------------------------------------
<TABLE>
<CAPTION>

For The For The
Year Ended Year Ended
July 31, 2000 July 30, 1999
----------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income............................................. $ 5,523,599 $ 5,683,003
Net realized gain (loss) on investment and futures transactions... (531,393) 774,752
Net change in unrealized appreciation (depreciation) on
investments and futures .......................................... (3,354,121) (2,483,703)
---------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations. $ 1,638,085 $ 3,974,052
---------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.59 and $.58 per share,
respectively) .................................................... $ (5,523,599) $ (5,683,003)
Distributions from net realized gain on investment and
futures transactions.............................................. 0 0
---------------------------------------------
Total Dividends and Distributions............................. $ (5,523,599) $ (5,683,003)
---------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares...................................... $ 4,917,448 $ 7,216,537
Proceeds from reinvested dividends................................ 3,628,076 3,847,350
Cost of shares redeemed........................................... (16,987,303) (13,496,584)
---------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions................................. $ (8,441,779) $ (2,432,697)
---------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS................................ $ (12,327,293) $ (4,141,648)

NET ASSETS, BEGINNING OF PERIOD........................................ 115,882,087 120,023,735
---------------------------------------------
NET ASSETS, END OF PERIOD.............................................. $ 103,554,794 $ 115,882,087
=============================================
</TABLE>

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

NOTES TO FINANCIAL STATEMENTS July 31, 2000

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 31, 2000, a net
capital loss carryforward totaling $5,708,636, which may be used to offset
capital gains realized during subsequent years through July 31, 2008.

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
a 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 31, 2000, there were unlimited shares of no par authorized;
8,945,410 and 9,675,452 shares were outstanding at July 31, 2000 and
July 30, 1999, respectively.

Transactions in capital shares were as follows:
<TABLE>
<CAPTION
Shares
-------

For The For The
Year Ended Year Ended
July 31, 2000 July 30, 1999
--------------------------------------
<S> <C> <C>
Shares sold.................................. 422,488 594,266
Shares issued on reinvestment of dividends... 311,545 316,848
Shares redeemed.............................. (1,464,075) (1,110,974)
-----------------------------------
Net increase (decrease) ..................... (730,042) (199,860)
===================================
</TABLE>

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 $544,815 of investment
advisory fees for the year ended July 31, 2000. The Fund has a payable to
Ranson Capital Corporation of $43,263 at July 31, 2000 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
$233,827 of service fee expenses after partial waiver for the year ended
July 31, 2000. The Fund has a payable to Ranson of $16,846 at July 31, 2000
for service fees.

The Fund has engaged ND Capital, Inc. as agent for the purchase of certain
investment securities. For the year ended July 31, 2000, no commissions were
earned by ND Capital, Inc.

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 $114,429 of transfer agency fees and expenses
for the year ended July 31, 2000. The Fund has a payable to ND Resources, Inc.
of $9,174 at July 31, 2000 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 $71,668 of accounting service fees for the year ended
July 31, 2000. The Fund has a payable to ND Resources, Inc. of $5,845 at
July 31, 2000 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 $8,800,104 and $17,866,374,
respectively, for the year ended July 31, 2000.

Note 6. INVESTMENT IN SECURITIES
At July 31, 2000, the aggregate cost of securities for federal income tax
purposes was $102,380,103, and the net unrealized appreciation of investments
based on the cost was $29,741, which is comprised of $2,044,456 aggregate gross
unrealized appreciation and $2,014,715 aggregate gross unrealized depreciation.

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 31, July 30, July 31, July 31, July 31,
2000 1999 1998 1997 1996
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 11.98 $ 12.15 $ 12.42 $ 12.14 $ 12.07
----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................... $ .59 $ .58 $ .60 $ .61 $ .69
Net realized and unrealized gain (loss) on
investment and futures transactions............... (.40) (.17) (.27) .28 .07
Total Income (Loss) From
Investment Operations..................... $ .19 $ .41 $ .33 $ .89 $ .76
----------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income......... $ (.59) $ (.58) $ (.60) $ (.61) $ (.69)
Distributions from net capital gains......... .00 .00 .00 .00 .00
----------------------------------------------------------------------------
Total Distributions....................... $ (.59) $ (.58) $ (.60) $ (.61) $ (.69)
----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.................... $ 11.58 $ 11.98 $ 12.15 $ 12.42 $ 12.14
============================================================================
TOTAL RETURN 1.69%(A) 3.44%(A) 2.76%(A) 7.56%(A) 5.90%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)..... $ 103,555 $ 115,882 $ 120,024 $ 128,201 $ 132,349
Ratio of net expenses (after
expense assumption) to average
net assets................................... 0.95%(B) 0.95%(B) 0.95%(B) 0.93%(B) 0.85%(B)
Ratio of net investment income
to average net assets........................ 5.07% 4.80% 4.93% 5.02% 5.18%
Portfolio turnover rate...................... 8.21% 13.54% 26.68% 18.64% 20.14%
<FN>
(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 $38,581, $23,429, $3,901, $46,741, and
$212,056, respectively. If the expenses had not been assumed/waived, the
annualized ratios of total expenses to average net assets would have been
0.99%, 0.97%, 0.95%, 0.97%, and 1.01%, respectively.
</FN>
</TABLE>

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

TAX INFORMATION FOR THE YEAR ENDED JULY 31, 2000 (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 FROM NET
TO SHAREHOLDERS OF FROM NET REALIZED SHORT- REALIZED LONG-
RECORD PAYMENT DATE INVESTMENT INCOME TERM GAINS TERM GAINS
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 30, 1999 August 31, 1999 $ .048895 - -
September 29, 1999 September 30, 1999 .048821 - -
October 28, 1999 October 29, 1999 .047377 - -
November 29, 1999 November 30, 1999 .050697 - -
December 30, 1999 December 31, 1999 .049164 - -
January 28, 2000 January 31, 2000 .048889 - -
February 28, 2000 February 29, 2000 .049415 - -
March 30, 2000 March 31, 2000 .049210 - -
April 27, 2000 April 28, 2000 .045954 - -
May 30, 2000 May 31, 2000 .053000 - -
June 29, 2000 June 30, 2000 .049298 - -
July 28, 2000 July 31, 2000 .049100 - -
</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 31, 2000, 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 five 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.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 2000, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Kansas Municipal Fund of the Ranson Managed Portfolios, as of July 31, 2000,
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 five years in the peiod then ended, in conformity with
generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 1, 2000

THE KANSAS INSURED INTERMEDIATE FUND
------------------------------------
Dear Shareholder:

Enclosed is the annual report of the operations of The Kansas Insured
Intermediate Fund, the "Fund," for the year ended July 31, 2000. The Fund's
portfolio and related financial statements are presented within for your
review.

We are pleased to report that for the one year period ending December 31,
1999, Lipper Analytical Services ranked The Kansas Insured Intermediate Fund
#1 in fixed income performance versus other state municipal funds. We would
like to take this opportunity to thank you, the shareholders, for your
continued confidence in the Fund.

As July, 2000 comes to a close, the Federal Reserve remains vigilant of a
strong U.S. economy, raising the fed funds rate 1.75% to a current level of
6.50%. Strong consumer spending, tight labor markets, and an increasing CPI
(Consumer Price Index) remain key factors in the Federal Reserve's actions.

Tax-free investments continue to offer investors attractive yields in the wake
of rising interest rates. High-grade municipal bonds are currently trading at
90-100% of taxable Treasuries. While no one knows what the Federal Reserve's
next move will be, history tells us that municipal bonds at current levels
have proven to be attractive investments.

The Kansas Insured Intermediate Fund began the year at $11.98 and ended the
year at $11.69. In anticipation of Federal Reserve actions, the Fund
utilized a defensive position in U.S. Treasury futures. Share price was
stabilized as yields on U.S. Treasuries rose on Federal Reserve rate hikes
and tempered as signs of a slowing economy rallied the treasury market.
Stability of share price is the primary objective of a defensive position.

The investment objective of the Fund is to provide as high a 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.

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.

<TABLE>
<CAPTION>
Portfolio Quality Ratings
(based on Total Long-Term Investments)
---------------------------------------
<S> <C>
AAA 100%
</TABLE>

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.

<TABLE>
<CAPTION>
Portfolio Market Sectors
(as a % of Net Assets)
-------------------------
<S> <C>
H-Housing 30.8
HC-Health Care 28.8
GO-General Obligation 22.2
O-Other 7.4
S-Schools 4.8
W/S-Water/Sewer 4.0
G-Government 2.0
</TABLE>

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 $10,000 investment in The Kansas Insured
Intermediate Fundand the Lehman Brothers Municipal Seven-Year Maturity
Bond Index
--------------------------------------------------------------------------

<TABLE>
<CAPTION>
The Kansas Insured The Kansas Insured Lehman Brothers Municipal
Intermediate Fund Intermediate Fund Seven-Year Maturity Bond Index
w/o sales charge w/ max sales charge
------------------------------------------------------------------------------------------------------
<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
2000 $14,112 $13,724 $15,405
</TABLE

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

</TABLE>
<TABLE>
<CAPTION>
For periods ending July 31, 2000
--------------------------------
Since Inception
1 year 5 year 10 year (November 23, 1992)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Without sales charge 2.15% 3.90% N/A 4.58%
With sales charge (2.75%) (0.65)% 3.32% N/A 4.20%
</TABLE>

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
--------------
07-30-1999 NAV (share value) $11.98
07-31-2000 NAV $11.69
Average Maturity 9.1 years
Number of Issues 42
Total Net Assets $19,028,216

SCHEDULE OF INVESTMENTS JULY 31, 2000
--------------------------------------
<TABLE>
<CAPTION>
NAME OF ISSUER RATING
PERCENTAGES REPRESENT THE MARKET VALUE OF EACH (UNAUDITED) COUPON PRINCIPAL MARKET
INVESTMENT CATEGORY TO TOTAL NET ASSETS MOODY'S/S&P RATE MATURITY AMOUNT VALUE
------------------------------------------------------------------------------------------------------------------------------
KANSAS MUNICIPAL BONDS (96.9%)
<S> <C> <C> <C> <C> <C>
*Douglas Cty., KS USD #497 (Lawrence) G.O. FGIC....... Aaa/AAA 7.200% 09/01/02 $ 1,370,000 $ 1,449,296
Harvey Cty., KS USD #373 (Newton) FSA................. Aaa/AAA 5.000 09/01/16 250,000 239,455
Johnson Cty., KS USD #232 (Desoto) G.O. MBIA.......... Aaa/AAA 5.200 09/01/10 480,000 487,891
Johnson Cty., KS USD #233 (Olathe) G.O. AMBAC......... Aaa/AAA 6.150 03/01/07 300,000 310,776
Kansas City, KS (St. Margaret Hlth. Ctr.) AMBAC....... Aaa/AAA 5.700 08/01/03 250,000 256,845
Kansas City, KS Special Obligation Escrowed........... NR/AAA 6.000 02/15/03 200,000 207,666
Kingman Cty., KS USD #331 FGIC........................ Aaa/AAA 5.500 10/01/12 250,000 256,720
KS Devl. Finance Auth (Wichita Univ.) AMBAC........... Aaa/AAA 5.900 04/01/15 305,000 318,569
KS Devl. Finance Auth. (Dept. Admin.
7th & Harrison PJ).................................... Aaa/AAA 5.500 12/01/13 375,000 378,967
KS Devl. Finance Auth. (Hays Medl. Ctr.) Rev. MBIA.... Aaa/NR 5.200 11/15/08 375,000 384,311
KS Devl. Finance Auth. (Hays Medl. Ctr.) Rev. MBIA.... Aaa/NR 5.300 11/15/09 375,000 384,600
#KS Devl. Finance Auth. (Stormont Vail)
Hlth. Care Rev. MBIA.................................. Aaa/AAA 5.700 11/15/08 450,000 469,827
KS Devl. Finance Auth. (Stormont Vail)
Hlth. Care Rev. MBIA.................................. Aaa/AAA 5.600 11/15/07 100,000 103,670
KS Devl. Finance Auth. Multifamily Hsg.
(Park Apts.) Rev...................................... NR/AAA 5.700 12/01/09 325,000 330,060
KS Devl. Finance Auth. Pooled Ref. Lease Rev. MBIA.... Aaa/AAA 5.500 10/01/05 250,000 258,567
KS State Turnpike Auth. Rev. FGIC..................... Aaa/AAA 5.450 09/01/10 200,000 205,616
Larned, KS (Cath. Hlth. Corp.) Hlth. Facs. Rev. MBIA.. Aaa/AAA 5.400 11/15/04 155,000 159,858
Lenexa, KS Multifamily Hsg. (Barrington Park)
Rev. ASGUA............................................ NR/AAA^ 6.050 02/01/06 350,000 357,528
*Lenexa, KS Multifamily Hsg. (Barrington Park)
Rev. Ref. ............................................ NR/AAA^ 5.875 02/01/04 500,000 513,080
Lenexa, KS Multifamily Hsg. (Barrington Park)
Rev. Ref. ............................................ NR/AAA^ 5.950 02/01/05 250,000 256,272
Mission, KS Multifamily Hsg. (Lamar Place) Rev. FNMA.. NR/AAA 5.000 10/01/14 605,000 573,159
Mission, KS Multifamily Hsg. (Lamar Place) Rev. FNMA.. NR/AAA 5.180 10/01/23 945,000 872,216
Olathe, KS (Evangelical Lutheran Good Samaritan Soc.). Aaa/AAA 5.500 05/01/03 110,000 113,244
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. AMBAC........ Aaa/AAA 5.125 09/01/12 500,000 493,195
Olathe, KS (Medl. Ctr.) Hlth. Facs. Rev. Ref. AMBAC... Aaa/AAA 5.600 09/01/05 1,000,000 1,025,400
Olathe, KS Multifamily Hsg. (Bristol Pointe)
Rev. Ref. FNMA........................................ NR/AAA 5.250 11/01/12 485,000 475,407
Sedgwick Cty., KS USD #266 (Maize) G.O. FSA........... Aaa/AAA 5.500 09/01/05 300,000 310,089
Sedgwick Cty., KS USD #267 (Renwick) G.O. AMBAC....... Aaa/AAA 6.000 11/01/07 570,000 609,017
Sedgwick/Shawnee Cty., KS Single Family Mrtge.
Rev. GNMA............................................. Aaa/NR 5.200 12/01/08 435,000 435,348
*Shawnee Cty., KS USD #501 (Topeka) G.O. FGIC......... Aaa/AAA 5.550 02/01/07 820,000 844,641
Shawnee, KS Multifamily Hsg. (Thomasbrooks Apts.) Rev. NR/AAA 5.250 10/01/14 750,000 713,918
University of Kansas Hosp. Auth. AMBAC................ Aaa/AAA 5.500 09/01/15 1,000,000 1,009,820
Washburn Univ. (Living Learning Ctr) Bld. Rev. AMBAC.. Aaa/AAA 5.350 07/01/11 105,000 106,681
Wellington, KS Utility Rev. AMBAC..................... Aaa/AAA 5.000 05/01/12 250,000 246,453
Wichita, KS (St. Francis Regl. Medl. Ctr.)
Impvt. & Ref. MBIA.................................... Aaa/AAA 6.000 10/01/03 250,000 262,348
Wichita, KS (St. Francis Regl. Medl. Ctr.)
Impvt. & Ref. MBIA.................................... Aaa/AAA 6.100 10/01/04 775,000 815,517
Wichita, KS Airport Auth. Facs. Rev. Ref. ASGUA....... NR/AAA^ 7.000 03/01/05 100,000 105,527
#Wichita, KS Multifamily Hsg. (Broadmoor Chelsea) Rev. NR/AAA 5.375 07/01/10 625,000 633,031
*Wichita, KS Multifamily Hsg. (Cimarron
Apartments) FNMA...................................... Aa/AAA 5.250 10/01/12 715,000 705,562
Wichita, KS Water & Sewer Rev. FGIG................... Aaa/AAA 5.000 10/01/15 250,000 236,490
Wichita, KS Water & Sewer Util. Rev. Ref. FGIC........ Aaa/AAA 5.600 04/01/05 360,000 366,671
Wichita, KS Water & Sewer Util. Rev. Ref. FGIC........ Aaa/AAA 5.750 10/01/06 150,000 153,042
-------------
TOTAL KANSAS MUNICIPAL BONDS (COST: $18,283,119) ....................................................... $ 18,436,350
-------------
SHORT-TERM SECURITIES (1.5%)
Federated Tax-Free Fund 73 (COST: $286,944) ............................................................ $ 286,944
-------------
TOTAL INVESTMENTS IN SECURITIES (COST: $18,570,063) .................................................... $ 18,723,294
OTHER ASSETS LESS LIABILITIES........................................................................... 304,922
-------------
NET ASSETS.............................................................................................. $ 19,028,216
=============
<FN>
* 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.

^ Indicates Duff & Phelps rating.

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

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

FINANCIAL STATEMENTS JULY 31, 2000
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 2000
---------------------------------------------------
<S> <C>
ASSETS
Investment in securities, at value (cost: $18,570,063)....... $ 18,723,294
Accrued interest receivable.................................. 355,390
Cash......................................................... 35,657
Accrued dividends receivable................................. 369
Prepaid expenses............................................. 89
---------------
Total Assets.............................................. $ 19,114,799
---------------
LIABILITIES
Dividends payable............................................ $ 73,232
Accrued expenses............................................. 13,351
---------------
Total Liabilities......................................... $ 86,583
---------------

NET ASSETS........................................................ $ 19,028,216
===============

NET ASSETS ARE REPRESENTED BY:
Paid-in capital.............................................. $ 19,794,706
Accumulated undistributed net realized gain (loss) on
investments.................................................. (919,721)
Unrealized appreciation on investments ...................... 153,231
---------------
Total amount representing net assets applicable to
1,627,778 outstanding shares of no par common
stock (unlimited shares authorized) .................... $ 19,028,216
===============
Net asset value per share......................................... $ 11.69
===============
</TABLE>

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

<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2000
----------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest..................................................... $ 1,063,041
Dividends.................................................... 9,345
---------------
Total Investment Income.................................. $ 1,072,386
---------------
EXPENSES
Investment advisory fees..................................... $ 100,561
Transfer agent fees.......................................... 29,062
Accounting service fees...................................... 34,052
Custodian fees............................................... 3,007
Transfer agent out-of-pockets................................ 2,300
Professional fees............................................ 4,366
Trustees fees................................................ 2,627
Reports to shareholders...................................... 1,634
Registration and filing fees................................. 1,924
Insurance expense............................................ 1,723
---------------
Total Expenses............................................ $ 181,256
Less expenses waived or absorbed
by the Fund's manager........................................ (30,414)
---------------
Total Net Expenses........................................ $ 150,842
---------------
NET INVESTMENT INCOME............................................. $ 921,544
---------------

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions...................................... $ (970)
Futures transactions......................................... (48,728)
Net change in unrealized appreciation (depreciation) of:
Investments.................................................. (453,298)
---------------
Net Realized and Unrealized Gain (Loss) On
Investments And Futures................................. $ (502,996)
---------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS......................................... $ 418,548
===============
</TABLE

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

FINANCIAL STATEMENTS JULY 31, 2000
----------------------------------

STATEMENT OF CHANGES IN NET ASSETS
For the year ended July 31, 2000 and the year ended July 30, 1999
------------------------------------------------------------------

</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JULY 31, 2000 JULY 30, 1999
----------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................................. $ 921,544 $ 927,674
Net realized gain (loss) on investment and futures transactions....... (49,698) (27,108)
Net change in unrealized appreciation (depreciation) on
investments and futures............................................... (453,298) (137,659)
----------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations.... $ 418,548 $ 762,907
----------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.54 and $.53 per share,
respectively) ........................................................ $ (921,544) $ (927,674)
Distributions from net realized gain on investment and
futures transactions.................................................. 0 0
----------------------------------------------
Total Dividends and Distributions................................... $ (921,544) $ (927,674)
----------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares.......................................... $ 748,157 $ 2,012,253
Proceeds from reinvested dividends.................................... 521,667 542,608
Cost of shares redeemed............................................... (3,072,038) (1,641,509)
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions..................................... $ (1,802,214) $ 913,352
----------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................... $ (2,305,210) $ 748,585

NET ASSETS, BEGINNING OF PERIOD............................................ 21,333,426 20,584,841
----------------------------------------------
NET ASSETS, END OF PERIOD.................................................. $ 19,028,216 $ 21,333,426
==============================================
</TABLE>

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

NOTES TO FINANCIAL STATEMENTS JULY 31, 2000

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 31, 2000, a net
capital loss carryforward totaling $919,721, which may be used to offset
capital gains realized during subsequent years through July 31, 2008.

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.

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.

NOTE 3. CAPITAL SHARE TRANSACTIONS
As of July 31, 2000, there were unlimited shares of no par authorized;
1,627,778 and 1,781,247 shares were outstanding at July 31, 2000 and July 30,
1999, respectively.

Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Shares
-------------
For The For The
Year Ended Year Ended
July 31, 2000 July 30, 1999
-----------------------------------------------
<S> <C> <C>
Shares sold........................................ 63,542 166,145
Shares issued on reinvestment of dividends......... 44,374 44,820
Shares redeemed.................................... (261,385) (135,547)
-----------------------------------------------
Net increase (decrease) ........................... (153,469) 75,418
===============================================
</TABLE>

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 $70,147 of investment
advisory fees after partial waiver for the year ended July 31, 2000. The Fund
has a payable to Ranson Capital Corporation of $5,204 at July 31, 2000 for
investment advisory fees. Certain officers and trustees of the Fund are also
officers and directors of the investment adviser.

The Fund has engaged ND Capital, Inc. as agent for the purchase of certain
investment securities. For the year ended July 31, 2000, no commissions were
earned by ND Capital, Inc.

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 $29,062 of transfer agency fees and expenses
for the year ended July 31, 2000. The Fund has a payable to ND Resources, Inc.
of $2,307 at July 31, 2000 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 $34,052 of accounting service fees for the year ended
July 31, 2000. The Fund has a payable to ND Resources, Inc. of $2,793 at
July 31, 2000 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 $2,195,061 and $4,153,357,
respectively, for the year ended July 31, 2000.

Note 6. INVESTMENT IN SECURITIES
At July 31, 2000, the aggregate cost of securities for federal income tax
purposes was $18,570,063, and the net unrealized appreciation of investments
based on the cost was $153,231, which is comprised of $347,077 aggregate
gross unrealized appreciation and $193,846 aggregate gross unrealized
depreciation.

FINANCIAL HIGHLIGHTS
---------------------
Selected per share data and ratios for the period indicated
<TABLE>
<CAPTION>
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
July 31, July 30, July 31, July 31, July 31,
2000 1999 1998 1997 1996
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............ $ 11.98 $ 12.07 $ 12.23 $ 12.19 $ 12.04
-----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................... $ .54 $ .53 $ .54 $ .53 $ .53
Net realized and unrealized gain (loss) on
investment and futures transactions......... (.29) (.09) (.16) .04 .15
-----------------------------------------------------------------------------

Total Income (Loss) From
Investment Operations.................. $ .25 $ .44 $ .38 $ .57 $ .68
-----------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income....... $ (.54) $ (.53) $ (.54) $ (.53) $ (.53)
Distributions from net capital gains....... .00 .00 .00 .00 .00
-----------------------------------------------------------------------------
Total Distributions..................... $ (.54) $ (.53) $ (.54) $ (.53) $ (.53)
-----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.................. $ 11.69 $ 11.98 $ 12.07 $ 12.23 $ 12.19
=============================================================================
TOTAL RETURN.................................... 2.15%(A) 3.70%(A) 3.17%(A) 4.76%(A) 5.75%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)... $ 19,028 $ 21,333 $ 20,585 $ 25,533 $ 30,564
Ratio of net expenses (after
expense assumption) to average net assets.. 0.75%(B) 0.75%(B) 0.75%(B) 0.76%(B) 0.69%(B)
Ratio of net investment income to
average net assets......................... 4.58% 4.39% 4.42% 4.33% 4.37%
Portfolio turnover rate.................... 11.07% 16.34% 25.46% 28.68% 19.96%

<FN>
(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 $30,414, $29,229, $13,708, $40,608,
and $71,943, respectively. If the expenses had not been assumed/waived, the
annualized ratios of total expenses to average net assets would have been
0.90%, 0.89%, 0.82%, 0.90%, and 0.92%, respectively.
</FN>
</TABLE>

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

Dividends and Distributions Per Share
-------------------------------------
<TABLE>
<CAPTION>
From Net From Net
To Shareholders of From Net Realized Short- Realized Long-
Record Payment Date Investment Income Term Gains Term Gains
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 30, 1999 August 31, 1999 $ .044527 - -
September 29, 1999 September 30, 1999 .044557 - -
October 28, 1999 October 29, 1999 .043221 - -
November 29, 1999 November 30, 1999 .046217 - -
December 30, 1999 December 31, 1999 .044883 - -
January 28, 2000 January 31, 2000 .044947 - -
February 28, 2000 February 29, 2000 .044833 - -
March 30, 2000 March 31, 2000 .044888 - -
April 27, 2000 April 28, 2000 .042011 - -
May 30, 2000 May 31, 2000 .048261 - -
June 29, 2000 June 30, 2000 .045126 - -
July 28, 2000 July 31, 2000 .044914 - -
</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 31, 2000, the related statement of operations for the year ended July
31, 2000, 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 five
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.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 2000, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Kansas Insured Intermediate Fund of the Ranson Managed Portfolios, as of July
31, 2000, the results of its operations for the year ended July 31, 2000, 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 five years in the period then
ended, in conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 1, 2000

THE NEBRASKA MUNICIPAL FUND
---------------------------
Dear Shareholder:

Enclosed is the annual report of the operations of The Nebraska Municipal Fund,
the "Fund," for the year ended July 31, 2000. The Fund's portfolio and related
financial statements are presented within for your review.

We are pleased to report that for the one year period ending December 31, 1999,
Lipper Analytical Services ranked The Nebraska Municipal Fund #1 in fixed
income performance versus other state municipal funds. We would like to take
this opportunity to thank you, the shareholders, for your continued confidence
in the Fund.

Tax-free investments continue to offer investors attractive yields in the wake
of rising interest rates. High-grade municipal bonds are currently trading at
90-100% of taxable Treasuries. While no one knows what the Federal Reserve's
next move will be, history tells us that municipal bonds at current levels have
proven to be attractive investments.

The Nebraska Municipal Fund began the year at $11.01 and ended the year at
$10.71. In anticipation of Federal Reserve actions, the Fund utilized a
defensive position in U.S. Treasury futures. Share price was stabilized as
yields on U.S. Treasuries rose on Federal Reserve rate hikes and tempered as
signs of a slowing economy rallied the treasury market. Stability of share
price is the primary objective of a defensive position.

Diversification remains an important strategy of the Fund. Throughout the
year, some of the purchases in the primary and secondary markets included
Dakota City School District #11 and Bryan Memorial Hospital.

The investment objective of the Fund is to provide as high a 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

</TABLE>
<TABLE>
<CAPTION>
Portfolio Quality Ratings
(based on Total Long-Term Investments)
--------------------------------------
[pie chart]

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.

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

<S> <C>
HC-Health Care 21.7
S-School 20.1
H-Housing 18.4
U-Utilities 13.5
GO-General Obligation 12.2
O-Other 6.4
I-Industrial 3.3
W/S-Water/Sewer 2.4
C/L-COP/Lease 2.0
</TABLE>

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 Fundand the Lehman Brothers Municipal Bond Index
----------------------------------------------------------------------
<TABLE>
<CAPTION>
The Nebraska Municipal The Nebraska Municipal The Lehman Brothers
Fund w/o sales charge Fund w/ max sales charge Municipal Bond Index
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
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
2000 $13,146 $12,588 $14,268
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
----------------------------
<TABLE>
<CAPTION>

FOR PERIODS ENDING JULY 31, 2000
--------------------------------
Since Inception
1 year 5 year 10 year (November 17, 1993)
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Without sales charge................ 2.28% 4.66% N/A 4.16%
With sales charge (4.25%)........... (2.06)% 3.75% N/A 3.49%
</TABLE>

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
--------------
07-30-1999 NAV (share value) $11.01
07-31-2000 NAV $10.71
Average Maturity 18.7 years
Number of Issues 98
Total Net Assets $38,171,363

SCHEDULE OF INVESTMENTS JULY 31, 2000
-------------------------------------
<TABLE>
<CAPTION>
NAME OF ISSUER RATING
PERCENTAGES REPRESENT THE MARKET VALUE OF EACH (UNAUDITED) COUPON PRINCIPAL MARKET
INVESTMENT CATEGORY TO TOTAL NET ASSETS MOODY'S/S&P RATE MATURITY AMOUNT VALUE
-----------------------------------------------------------------------------------------------------------------------------
NEBRASKA MUNICIPAL BONDS (97.5%)
<S> <C> <C> <C> <C> <C>
Adams Cty., NE Hosp. Auth. #001
(Mary Lanning Memorial Hosp.)........................ NR/AA 5.300% 12/15/18 $ 250,000 $ 239,577
Cass Cty, NE School Dist. #056 (Conestoga
Public Schools) ..................................... NR/NR 6.150 12/15/20 250,000 255,290
Columbus Community Hospital Platte Cty, NE
Asset Guaranty....................................... NR/AA 5.650 05/01/12 100,000 99,807
Columbus Community Hospital Platte Cty,
NE Asset Guaranty.................................... NR/AA 6.150 05/01/30 250,000 247,388
Cuming Cty., NE School Dist. #020
(Bancraft-Rosalie) .................................. NR/NR 5.750 12/15/17 100,000 97,428
Dakota Cty., NE SD #011 (South Sioux City
Community Schools) .................................. Aaa/AAA 6.100 06/15/20 1,000,000 1,034,430
Dawson Cty., NE SID #001 (IBP, Inc. Proj.) Ref. G.O.. A-3/A- 5.650 02/01/22 700,000 677,264
Douglas Cty., NE (Catholic Health Corp.) Rev. MBIA... Aaa/AAA 5.375 11/15/15 275,000 271,802
Douglas Cty., NE (Catholic Health Corp.) Rev. MBIA... Aaa/AAA 5.500 11/15/21 340,000 332,143
Douglas Cty., NE Hosp. Auth. #001 (Alegent Hlth.)
Rev. AMBAC........................................... Aaa/AAA 5.250 09/01/21 250,000 234,043
Douglas Cty., NE Hosp. Auth. #002
(Archbishop Bergan) Hlth. Facs. ..................... Aa-3/AA- 6.250 11/15/22 100,000 101,727
Douglas Cty., NE Hosp. Auth. #002
(Archbishop Bergan) Rev. ............................ Aa-3/AA- 5.850 11/15/03 100,000 102,964
Douglas Cty., NE Hosp. Auth. #002
(Archbishop Bergan) Rev. MBIA........................ Aaa/AAA 6.000 11/15/15 125,000 128,682
Douglas Cty., NE Hosp. Auth. #002
(Bethphage Project) Rev. ............................ NR/NR 5.400 02/01/13 120,000 115,410
Douglas Cty., NE Hosp. Auth. #002
(Lakeside Village) Rev. AMBAC........................ Aaa/AAA 5.000 12/15/17 250,000 230,910
Douglas Cty., NE School Dist. #001................... Aa/AAA 5.625 12/15/19 250,000 249,687
Douglas Cty., NE School Dist. #066
(Westside Comm. Schools) G.O. ....................... A-1/AA- 5.000 12/01/17 150,000 137,950
Douglas Cty., NE SID #240 (LeBea) Ref. G.O. ......... NR/NR 5.900 10/15/16 100,000 98,855
Douglas Cty., NE SID #295 G.O. (Turtle Creek)........ NR/NR 6.500 06/01/17 800,000 803,832
Douglas Cty., NE SID #392 (Cinnamon Creek) G.O....... NR/NR 5.750 08/15/17 200,000 192,414
Douglas Cty., NE SID #396 (First National
Business Park) ...................................... NR/NR 5.750 09/01/17 100,000 96,187
Douglas Cty., NE SID #397 (Linden Estates II)........ NR/NR 5.600 07/15/18 265,000 255,296
Douglas Cty., NE SID #397 (Linden Estates II)........ NR/NR 5.600 07/15/19 280,000 269,895
Gage Cty., NE Hosp. Auth. #001 (Beatrice Comm.
Hosp.) Rev. ......................................... NR/NR 6.400 10/01/07 100,000 102,140
Gage Cty., NE Hosp. Auth. #001 (Beatrice Comm.
Hosp.) Rev. ......................................... NR/NR 6.750 10/01/14 200,000 203,168
Gage Cty., NE School Dist. #015
(Beatrice) G.O. AMBAC................................ Aaa/AAA 5.900 12/15/16 850,000 868,555
Grand Island, NE Sewer Syst. Rev. ................... NR/A 6.000 04/01/14 550,000 564,223
Hastings, NE Elec. Rev. ........................ .... A-3/A 6.300 01/01/19 370,000 381,355
Lancaster Cty., NE (Bryan Memorial Hospital)
Rev. MBIA............................................ Aaa/AAA 5.375 06/01/19 1,400,000 1,337,378
Lancaster Cty., NE (Lincoln Medl. Educ.
Foundn.) Rev. ....................................... NR/NR 5.700 02/01/11 100,000 100,487
Lancaster Cty., NE (Lincoln Medl. Educ.
Foundn.) Rev. ....................................... NR/NR 5.800 02/01/12 175,000 175,980
Lancaster Cty., NE Hosp. Auth. #001
(Sisters of Charity) Rev. ........................... Aaa/AAA 6.250 05/15/12 200,000 210,804
Lincoln, NE Elec. Syst. Rev. ........................ Aa/AA+ 5.750 09/01/16 750,000 756,615
Lincoln, NE Various Purpose Unlimited Tax G.O........ Aa-1/AAA 4.750 08/15/19 750,000 666,120
Lincoln/Lancaster Cty., NE Public Bldg.
Community G.O. ...................................... NR/NR 6.200 10/15/11 100,000 103,594
Lincoln/Lancaster Cty., NE Public
Bldg. Community Rev. ................................ Aa/AA+ 5.875 10/15/23 850,000 862,503
Lincoln/Lancaster Cty., NE Public Bldg.
Community Tax Lease Rental........................... Aa/AA+ 5.800 10/15/18 475,000 485,483
Madison Cty., NE Hosp. Auth. #001
(Faith Regl. Hlth. Svcs.) Rev. ...................... NR/AA 5.350 07/01/18 250,000 235,330
NE (Educ. Telecommunications Comm.) Lease Rental Rev. A-1/AA 6.000 02/01/10 750,000 794,640
NE (Municipal Energy Agency) Power Supply Syst.
Rev. Ref. ........................................... Aaa/AAA 6.000 04/01/17 200,000 202,930
NE Educ. Finance Auth. (Concordia
Teachers College) Rev. .............................. NR/NR 5.900 12/15/15 100,000 99,306
NE Educ. Finance Auth. (Creighton Univ.) Rev. AMBAC.. Aaa/AAA 5.950 01/01/11 300,000 316,713
NE Educ. Finance Auth. (Dana College) Rev. G.O....... NR/NR 6.750 06/01/14 100,000 107,558
NE Educ. Finance Auth. (Grace Univ.) Rev............. NR/NR 5.300 02/01/15 200,000 187,210
NE Educ. Finance Auth. (Grace Univ.) Rev............. NR/NR 5.500 02/01/19 200,000 185,388
NE Educ. Finance Auth. (Midland Lutheran
College) Rev. G.O. .................................. NR/NR 5.550 06/15/18 500,000 478,035
NE Hgr. Educ. Loan Program B Rev. MBIA............... Aaa/AAA 6.000 06/01/28 100,000 95,305
NE Hgr. Educ. Loan Program Junior Subord. Rev MBIA... Aaa/AAA 6.400 06/01/13 300,000 318,636
NE Hgr. Educ. Loan Program Junior Subord. Term MBIA.. Aaa/AAA 6.450 06/01/18 400,000 413,868
NE Hgr. Educ. Loan Program Senior Subord. Term MBIA.. Aaa/AAA 6.250 06/01/18 800,000 818,392
*NE Hgr. Educ. Loan Program Student Loan MBIA........ Aaa/AAA 5.875 06/01/14 1,350,000 1,355,022
NE Invmt. Finance Auth. (Catholic Hlth.
Initiatives) Rev. ................................... Aa-3/AA- 5.125 12/01/17 200,000 187,492
NE Invmt. Finance Auth. (Childrens
Healthcare Svcs) Facs. Rev. ......................... Aaa/AAA 5.500 08/15/17 410,000 405,929
#NE Invmt. Finance Auth. (Childrens
Healthcare Svcs.) Rev. AMBAC......................... Aaa/AAA 5.500 08/15/27 1,000,000 951,350
NE Invmt. Finance Auth. (Great Plains Regl.
Medl. Ctr.) ASGUA.................................... NR/AA 5.450 11/15/17 400,000 384,980
NE Invmt. Finance Auth. (Great Plains Regl.
Medl. Ctr.) Rev. ASGUA............................... NR/AAA 6.500 05/15/14 300,000 319,119
NE Invmt. Finance Auth. (Kings Gate Sr. Apts.)
Multifamily Rev. .................................... NR/AAA 5.350 03/01/29 290,000 262,688
NE Invmt. Finance Auth. (Muirfield Greens)
Multifamily Rev. FHA................................. Aa/NR 6.800 12/01/15 345,000 362,564
NE Invmt. Finance Auth. (Muirfield Greens)
Multifamily Rev. FHA................................. Aa/NR 6.850 12/01/25 525,000 553,455
NE Invmt. Finance Auth. (Waterbrook) Multifamily Rev. Aaa/AAA 5.600 04/01/07 210,000 215,771
NE Invmt. Finance Auth. Multifamily Hsg. Rev. FNMA... NR/AAA 6.200 06/01/28 495,000 494,401
NE Invmt. Finance Auth. Multifamily Hsg. Rev. GNMA... NR/AAA 6.000 06/01/17 495,000 504,598
NE Invmt. Finance Auth. Multifamily Hsg. Rev. GNMA... NR/AAA 6.100 06/01/29 500,000 499,385
*NE Invmt. Finance Auth. Single Family Hsg. Rev...... NR/AAA 6.600 09/01/20 610,000 626,263
*NE Invmt. Finance Auth. Single Family Hsg. Rev...... NR/AAA 6.300 09/01/28 1,105,000 1,119,409
NE Invmt. Finance Auth. Single Family Hsg. Rev. Coll. NR/AAA 6.300 03/01/17 160,000 166,582
NE Invmt. Finance Auth. Single Family Hsg.
Rev. FHA/GNMA........................................ NR/AAA 6.500 09/01/18 400,000 410,800
NE Invmt. Finance Auth. Single Family Hsg.
Rev. FHA/VA.......................................... NR/AAA 6.150 03/01/09 100,000 101,798
NE Invmt. Finance Auth. Single Family Hsg.
Rev. FHA/VA.......................................... NR/AAA 6.200 09/01/10 100,000 101,958
NE Invmt. Finance Auth. Single Family Hsg.
Rev. FNMA/GNMA....................................... NR/AAA 6.400 09/01/26 250,000 253,777
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA. NR/AAA 6.200 09/01/17 250,000 256,547
NE Invmt. Finance Auth. Single Family Hsg. Rev. GNMA. NR/AAA 6.250 03/01/21 300,000 305,352
NE Invmt. Finance Auth. Single Family Hsg.
Rev. GNMA/FNMA....................................... NR/AAA 6.250 09/01/28 205,000 206,045
NE Invmt. Finance Auth. Single Family Hsg.
Rev. GNMA/FNMA....................................... NR/AAA 6.300 09/01/30 250,000 252,688
NE Invmt. Finance Auth. Single Family Hsg.
Rev. VA/FNMA......................................... NR/AAA 7.300 09/01/26 310,000 320,636
NE Public Gas Agency (Gas Supply Sys.) Rev. ......... Baa-1/NR 6.250 04/01/05 200,000 206,976
NE Public Gas Agency (Gas Supply Sys.) Rev. ......... Baa-1/NR 5.650 04/01/06 200,000 203,238
NE Public Power Dist. (Power Supply Syst.) Rev. FSA.. Aaa/AAA 5.125 01/01/19 750,000 710,063
NE Public Power Dist. (Power Supply Syst.) Rev. MBIA. Aaa/AAA 5.000 01/01/28 250,000 224,410
NE Public Power Dist. (Power Supply Syst.) Rev. MBIA. Aaa/AAA 5.000 01/01/28 700,000 628,348
Northeast NE Juvenile Svcs. (Detention)
1st Mrtge. Rev. ..................................... NR/NR 6.375 06/01/17 770,000 748,517
Omaha, NE Parking Facs. Corp. (Omaha Park 4/5)
Lease Rev. .......................................... Aa-1/AA+ 5.700 09/15/15 750,000 769,478
Omaha, NE Public Power Dist. Elec. Syst. Rev......... NR/AA 6.000 02/01/15 330,000 343,985
Omaha, NE Public Power Dist. Elec. Syst. Rev......... Aa/NR 6.200 02/01/17 650,000 698,919
Omaha, NE Various Purpose............................ Aaa/AAA 6.250 12/01/12 250,000 271,590
Omaha, NE Various Purpose............................ Aaa/AAA 6.250 12/01/14 250,000 267,800
Otoe Cty., NE School Dist. #111
(Nebraska City) Ref. AMBAC........................... Aaa/AAA 5.800 11/15/14 400,000 401,052
Platte Cty., NE School Dist. #001 (Columbus)
G.O. Bank Qualified.................................. A/NR 5.000 12/15/19 500,000 468,630
Sarpy Cty., NE SID #052 (Prairie Corners) G.O........ NR/NR 6.000 10/01/17 300,000 291,396
Sarpy Cty., NE SID #086 (Willow Springs) G.O......... NR/NR 6.250 01/15/17 100,000 99,966
Sarpy Cty., NE SID #142 (Fairview) G.O. Ref.......... NR/NR 5.850 08/15/17 100,000 95,929
Saunders Cty., NE SD #039 (Wahoo Public Schools) .... NR/NR 6.000 12/15/20 250,000 251,220
Scotts Bluff Cty., NE Hosp. Auth. #001
(Regl West Medl. Ctr.) .............................. A-3/A- 5.125 11/15/19 1,250,000 1,133,988
Scotts Bluff Cty., NE Hosp. Auth. #001
(Regl West Medl. Ctr.) .............................. A-3/A- 5.250 11/15/28 500,000 443,790
Univ. of NE Board of Regents Lincoln Parking......... Aa-3/A- 5.800 06/01/20 500,000 492,150
Western NE Community College COPs.................... NR/NR 6.550 10/15/13 150,000 151,772
York, NE Sewer Syst. Rev. ........................... NR/NR 6.000 06/01/17 100,000 99,971
York, NE Water Rev. ................................. NR/NR 5.150 06/01/17 250,000 237,770
--------------
TOTAL NEBRASKA MUNICIPAL BONDS (COST: $37,330,811) ............................................................ $ 37,204,264
--------------
SHORT-TERM SECURITIES (2.6%)
Federated Tax-Free Fund 73 (COST: $982,567)................................................................... $ 982,567
--------------
TOTAL INVESTMENTS IN SECURITIES (COST: $38,313,378) ........................................................... $ 38,186,831
OTHER ASSETS LESS LIABILITIES.................................................................................. (15,468)
--------------
NET ASSETS..................................................................................................... $ 38,171,363
==============
<FN>
* 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.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.

FINANCIAL STATEMENTS JULY 31, 2000
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 2000
-------------------------------------------------
<S> <C>
Assets
Investment in securities, at value (cost: $38,313,378)......... $ 38,186,831
Accrued interest receivable.................................... 578,068
Cash........................................................... 62,133
Receivable for fund shares sold................................ 23,906
Accrued dividends receivable................................... 1,229
Prepaid expenses............................................... 317
----------------
Total Assets................................................ $ 38,852,484
----------------
LIABILITIES
Security purchase payable...................................... $ 497,040
Dividends payable.............................................. 159,451
Accrued expenses............................................... 24,630
----------------
Total Liabilities........................................... $ 681,121
----------------
NET ASSETS.......................................................... $ 38,171,363
================
NET ASSETS ARE REPRESENTED BY:
Paid-in capital................................................ $ 40,235,086
Accumulated undistributed net realized gain (loss) on
investments.................................................... (1,937,176)
Unrealized depreciation on investments ........................ (126,547)
----------------
Total amount representing net assets applicable to
3,564,086 outstanding shares of no par common
stock (unlimited shares authorized) ...................... $ 38,171,363
================
Net asset value per share........................................... $ 10.71
================
</TABLE>

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

<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2000
---------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest....................................................... $ 2,249,319
Dividends...................................................... 16,930
----------------
Total Investment Income.................................... $ 2,266,249
----------------
EXPENSES
Investment advisory fees....................................... $ 196,150
Service fees................................................... 98,075
Transfer agent fees............................................ 50,869
Accounting service fees........................................ 43,607
Custodian fees................................................. 5,848
Transfer agent out-of-pockets.................................. 4,500
Professional fees.............................................. 5,159
Reports to shareholders........................................ 2,709
Trustees fees.................................................. 3,639
Registration and filing fees................................... 6,560
Insurance expense.............................................. 3,344
----------------
Total Expenses............................................. $ 420,460
Less expenses waived or absorbed
by the Fund's manager.......................................... (124,718)
----------------
Total Net Expenses........................................ $ 295,742
----------------
NET INVESTMENT INCOME............................................... $ 1,970,507
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) from:
Investment transactions........................................ $ (99,465)
Futures transactions........................................... (100,396)
Net change in unrealized appreciation (depreciation) of:
Investments.................................................... (955,804)
----------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures................................... $ (1,155,665)
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS........................................... $ 814,842
================
</TABLE>

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

FINANCIAL STATEMENTS JULY 31, 2000

STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000 AND THE YEAR ENDED JULY 30, 1999
-----------------------------------------------------------------
<TABLE>
<CAPTION>
For The Year For The Year
Ended Ended
July 31, 2000 July 30, 1999
-------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income.............................................. $ 1,970,507 $ 1,467,043
Net realized gain (loss) on investment and futures transactions.... (199,861) 181,611
Net change in unrealized appreciation (depreciation) on
investments and futures............................................ (955,804) (758,543)
------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations.. $ 814,842 $ 890,111
------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.54 and $.54 per
share, respectively) .............................................. $ (1,970,507) $ (1,467,043)
Distributions from net realized gain on
investment and futures transactions................................ 0 0
-----------------------------------------------
Total Dividends and Distributions................................ $ (1,970,507) $ (1,467,043)
-----------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares....................................... $ 2,920,561 $ 5,450,673
Shares issued in connection with the Fund reorganization........... 0 12,877,367
Proceeds from reinvested dividends................................. 1,381,589 944,562
Cost of shares redeemed............................................ (6,917,770) (3,071,400)
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions.................................. $ (2,615,620) $ 16,201,202
-----------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS................................. $ (3,771,285) $ 15,624,270

NET ASSETS, BEGINNING OF PERIOD......................................... 41,942,648 26,318,378
-----------------------------------------------
NET ASSETS, END OF PERIOD............................................... $ 38,171,363 $ 41,942,648
===============================================
</TABLE>

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

NOTES TO FINANCIAL STATEMENTS JULY 31, 2000

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
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 31,
2000, a net capital loss carryforward totaling $1,937,176, which may be used
to offset capital gains realized during subsequent years through July 31, 2008.

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.

NOTE 3. CAPITAL SHARE TRANSACTIONS
As of July 31, 2000, there were unlimited shares of no par authorized;
3,564,086 and 3,808,712 shares were outstanding at July 31, 2000 and July 30,
1999, respectively.

Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
Shares
------
For The For The
Year Ended Year Ended
July 31, 2000 July 30, 1999
---------------------------------------------
<S> <C> <C>
Shares sold................................. 273,479 484,495
Shares issued in connection with the Fund
reorganization.............................. 0 1,148,739
Shares issued on reinvestment of dividends.. 129,051 84,149
Shares redeemed............................. (647,156) (273,842)
-------------------------------------------------
Net increase (decrease) .................... (244,626) 1,443,541
=================================================
</TABLE>

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 $169,506 of investment
advisory fees after partial waiver for the year ended July 31, 2000. The Fund
has a payable to Ranson Capital Corporation of $13,816 at July 31, 2000 for
investment advisory fees. Certain officers and trustees of the Fund are also
officers and directors of the investment adviser.

The Fund has engaged ND Capital, Inc. as agent for the purchase of certain
investment securities. For the year ended July 31, 2000, 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 31, 2000.

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 $50,869 of transfer agency fees for the year ended
July 31, 2000. The Fund has a payable to ND Resources, Inc. of $4,168 at
July 31, 2000 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 $43,607 of accounting service fees for the year ended July 31, 2000.
The Fund has a payable to ND Resources, Inc. of $3,592 at July 31, 2000 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 $4,395,891 and $7,365,870,
respectively, for the year ended July 31, 2000.

NOTE 6. INVESTMENT IN SECURITIES
At July 31, 2000, the aggregate cost of securities for federal income tax
purposes was $38,313,378, and the net unrealized depreciation of investments
based on the cost was $126,547, which is comprised of $614,652 aggregate gross
unrealized appreciation and $741,199 aggregate gross unrealized depreciation.

FINANCIAL HIGHLIGHTS
--------------------
Selected per share data and ratios for the period indicated
<TABLE>
<CAPTION>
For the Year For the Year For the Year For the Year For The Year
Ended Ended Ended Ended Ended
July 31, 2000 July 30, 1999 July 31, 1998 July 31, 1997 July 31, 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD...... $ 11.01 $ 11.13 $ 11.26 $ 11.00 $ 10.95
------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................. $ .54 $ .54 $ .56 $ .55 $ .57
Net realized and unrealized gain
(loss) on investment and futures
transactions.......................... (.30) (.12) (.13) .26 .05
------------------------------------------------------------------------------------
Total Income (Loss) From Investment
Operations......................... $ .24 $ .42 $ .43 $ .81 $ .62
------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income.. $ (.54) $ (.54) $ (.56) $ (.55) $ (.57)
Distributions from net capital gains.. .00 .00 .00 .00 .00
------------------------------------------------------------------------------------
Total Distributions............... $ (.54) $ (.54) $ (.56) $ (.55) $ (.57)
------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD............ $ 10.71 $ 11.01 $ 11.13 $ 11.26 $ 11.00
====================================================================================
TOTAL RETURN.............................. 2.28%(A) 3.82%(A) 3.95%(A) 7.57%(A) 5.73%(A)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ...................... $ 38,171 $ 41,943 $ 26,318 $ 27,802 $ 18,077
Ratio of net expenses (after expense
assumption) to average net assets.... 0.75%(B) 0.70%(B) 0.63%(B) 0.71%(B) 0.62%(B)
Ratio of net investment income to
average net assets................... 5.02% 4.83% 5.06% 5.03% 5.13%
Portfolio turnover rate.............. 11.42% 12.58% 26.36% 42.84% 27.20%
<FN>
(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 $124,718, $119,949, $51,233, $124,394,
and $129,053, respectively. If the expenses had not been assumed/waived, the
annualized ratios of total expenses to average net assets would have been
1.07%, 1.10%, 0.81%, 1.22%, and 1.38%, respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.

<TABLE>
<CAPTION>
DIVIDENDS AND DISTRIBUTIONS PER SHARE
-------------------------------------
From Net From Net
To Shareholders of From Net Realized Short- Realized Long-
Record Payment Date Investment Income Term Gains Term Gains
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>

August 28, 1999 August 31, 1999 $ .045088 - -
September 29, 1999 September 30, 1999 .044939 - -
October 29, 1999 October 30, 1999 .043555 - -
November 27, 1999 November 30, 1999 .046321 - -
December 30, 1999 December 31, 1999 .045030 - -
January 28, 2000 January 29, 2000 .045237 - -
February 25, 2000 February 26, 2000 .044687 - -
March 30, 2000 March 31, 2000 .044466 - -
April 29, 2000 April 30, 2000 .041360 - -
May 27, 2000 May 28, 2000 .047643 - -
June 29, 2000 June 30, 2000 .044489 - -
July 29, 2000 July 30, 2000 .044474 - -
</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 31, 2000, the
related statement of operations for the year ended July 31, 2000, 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 five 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.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 2000, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Nebraska Municipal Fund of the Ranson Managed Portfolios as of July 31, 2000,
the results of its operations for the year ended July 31, 2000, 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 five years in the period then ended, in
conformity with generally accepted accounting principles.

BRADY, MARTZ & ASSOCIATES, P.C.

September 1, 2000

THE OKLAHOMA MUNICIPAL FUND
---------------------------
Dear Shareholder:

Enclosed is the annual report of the operations of the Oklahoma Municipal Fund,
the "Fund," for the year ended July 31, 2000. The Fund's portfolio and
related financial statements are presented within for your review.

Tax-free investments continue to offer investors attractive yields in the wake
of rising interest rates. High-grade municipal bonds are currently trading at
90-100% of taxable Treasuries. While no one knows what the Federal Reserve's
next move will be, history tells us that municipal bonds at current levels have
proven to be attractive investments.

The Oklahoma Municipal Fund began the year at $11.61 and ended the year at
$10.99. In anticipation of Federal Reserve actions, the Fund utilized a
defensive position in U.S. Treasury futures. Share price was stabilized as
yields on U.S. Treasuries rose on Federal Reserve rate hikes and tempered as
signs of a slowing economy rallied the treasury market. Stability of share
price is the primary objective of a defensive position.

Diversification remains an important strategy of the Fund. Throughout the
year, some of the purchases in the primary and secondary market included
Oklahoma State Turnpike Authority and Oklahoma Board of Regents for the
University of Central Oklahoma.

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

<TABLE>
<CAPTION>
Portfolio Quality Ratings
(based on Total Long-Term Investments)
--------------------------------------
[pie chart]

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.

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

<S> <C>
S-School 40.3%
HC-Health Care 18.0%
H-Housing 9.0%
O-Other 7.3%
GO-General Obligation 6.5%
T-Transportation 6.0%
U-Utilities 5.6%
W/S-Water/Sewer 4.1%
I-Industrial 3.2%
</TABLE>

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

COMPARATIVE INDEX GRAPH
-----------------------

Comparison of change in value of a $10,000 investment in The Oklahoma
Municipal Fund and the Lehman Brothers Municipal Bond Index
----------------------------------------------------------------------
<TABLE>
<CAPTION>
The Oklahoma Municipal The Oklahoma Municipal Lehman Brothers
Fund w/o sales charge Fund w/ max sales charge Municipal Bond Index
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
09/25/1996 $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
2000 $11,648 $11,153 $12,542
</TABLE>

AVERAGE ANNUAL TOTAL RETURNS
----------------------------
<TABLE>
<CAPTION>
For periods ending July 31, 2000
--------------------------------
Since Inception
1 year 5 year 10 year (September 25, 1996)
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Without sales charge (0.12)% N/A N/A 4.04%
With sales charge (4.25%) (4.36)% N/A N/A 2.87%
</TABLE>

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
--------------
07-30-1999 NAV (share value) $11.61
07-31-2000 NAV $10.99
Average Maturity 19.7 years
Number of Issues 47
Total Net Assets $15,861,820

SCHEDULE OF INVESTMENTS JULY 31, 2000
--------------------------------------
<TABLE>
<CAPTION>
NAME OF ISSUER RATING
PERCENTAGES REPRESENT THE MARKET VALUE OF EACH (UNAUDITED) COUPON PRINCIPAL MARKET
INVESTMENT CATEGORY TO TOTAL NET ASSETS MOODYS/S&P RATE MATURITY AMOUNT VALUE
-----------------------------------------------------------------------------------------------------------------------------
OKLAHOMA MUNICIPAL BONDS (97.4%)
<S> <C> <C> <C> <C> <C>
Eastern OK Board of Regents (State College)
Student Facs. Rev......................................... NR/NR 6.100 06/01/17 $ 150,000 $ 151,531
Edmond Economic Dev. Auth., OK Student Housing Rev........ Baa-3/NR 5.375 12/01/19 100,000 91,860
Edmond Economic Dev. Auth., OK Student Housing Rev........ Baa-3/NR 5.500 12/01/28 865,000 782,080
Grand River Dam Auth., OK Rev. AMBAC...................... Aaa/AAA 6.250 06/01/11 210,000 233,291
*Grand River Dam Auth., OK Rev. Ref. AMBAC................ Aaa/AAA 5.500 06/01/13 300,000 308,625
OK Agric. & Mech. Colleges (OK St. Univ.) Athletic
Facs. AMBAC............................................... Aaa/NR 5.000 08/01/24 400,000 368,524
OK Agric. & Mech. Colleges (OK St. Univ.)
Util. Syst. FGIC.......................................... Aaa/AAA 5.000 07/01/13 350,000 341,614
OK Agric. & Mech. Colleges (Univ. of OK)
Mult. Facs. Rev. AMBAC.................................... Aaa/NR 4.900 05/01/17 590,000 559,869
OK Board of Regents (Univ. of Central Oklahoma) AMBAC..... NR/AAA 5.700 08/01/25 390,000 390,343
OK Capital Impvt. Auth. (Dept. of Corrections) Rev. AMBAC. Aaa/AAA 5.000 05/01/18 500,000 474,835
OK Capital Impvt. Auth. (State Office Building) Rev....... A/NR 5.500 10/01/16 105,000 105,456
OK Colleges Brd. of Regents (NE State Univ. Ctr.)
Rev. FSA.................................................. Aaa/AAA 5.100 03/01/16 140,000 136,538
OK Colleges Brd. of Regents (NE State Univ. Ctr.)
Rev. FSA.................................................. Aaa/AAA 5.150 03/01/21 100,000 95,350
OK Devl. Finance Auth. (Central OK Univ.) ................ Aa-3/NR 5.300 12/01/18 100,000 97,287
OK Devl. Finance Auth. (DHS Cty. Office Bldg.) Rev........ A/NR 5.250 11/01/11 120,000 120,760
OK Devl. Finance Auth. (DHS Cty. Office Bldg.) Rev........ A/NR 5.300 11/01/12 275,000 276,202
OK Devl. Finance Auth. (DHS Lease Rev.) Series 2000A MBIA. Aaa/NR 5.600 03/01/15 280,000 285,205
OK Devl. Finance Auth. (Hillcrest Healthcare Syst.)
Rev. Ref.................................................. NR/NR 5.625 08/15/19 1,000,000 772,000
OK Devl. Finance Auth. (Hillcrest Healthcare Syst.)
Rev. Ref. ................................................ NR/NR 5.625 08/15/29 295,000 217,415
OK Devl. Finance Auth. (Langston Univ.
Athletic Facs.) Rev....................................... NR/NR 5.250 12/01/23 500,000 454,245
*OK Devl. Finance Auth. (Oklahoma City Univ.)
Rev. Ref. AMBAC........................................... Aaa/AAA 5.125 06/01/17 555,000 535,236
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev...... NR/NR 6.200 11/01/07 100,000 105,172
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev...... NR/NR 6.500 11/01/13 75,000 79,530
OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev...... NR/NR 5.750 03/01/13 400,000 394,312
#OK Devl. Finance Auth. (Southern Nazarene Univ.) Rev..... NR/NR 6.000 03/01/18 600,000 585,672
OK Devl. Finance Auth. (St. Ann's Retirement Village)
Rev. MBIA................................................. Aaa/NR 5.000 12/01/28 500,000 439,750
OK Devl. Finance Auth. (St. John Health Syst.) Rev. Ref... Aa-3/AA 5.750 02/15/25 500,000 501,475
*OK Devl. Finance Auth. (Tulsa Vo Tech Dist. Prj.)
Public Facs. Rev. AMBAC................................... Aaa/AAA 5.100 08/01/15 750,000 731,565
OK Housing Finance Agency Single Family
Homeownership GNMA........................................ Aaa/NR 5.375 03/01/20 780,000 737,818
OK Housing Finance Agency Single Family Homeownership
GNMA/FNMA................................................. Aaa/NR 5.150 09/01/20 745,000 688,581
OK State Capital Impvt. Auth. (State Fac.) Rev. MBIA...... Aaa/AAA 5.500 09/01/19 100,000 99,370
OK State Indl. Finance Auth. G.O.......................... Aa-3/NR 5.000 04/01/13 150,000 145,692
OK State Indl. Finance Auth. G.O.......................... Aa-3/NR 6.050 02/01/15 285,000 291,076
OK State Municipal Power Auth. Rev. MBIA.................. Aaa/AAA 5.750 01/01/24 340,000 348,027
OK State Student Loan Auth................................ A/NR 6.350 09/01/25 280,000 286,160
OK State Turnpike Auth. Rev. FGIC......................... Aaa/AAA 5.250 01/01/28 660,000 621,139
OK State Turnpike Auth. Rev. FGIC......................... Aaa/AAA 5.000 01/01/28 250,000 226,323
OK State Unlimited Tax G.O................................ Aa-3/AA 5.200 07/15/16 460,000 452,764
OK State Unlimited Tax G.O................................ Aa-3/AA 5.200 07/15/18 145,000 140,891
OK State Water (Loan Program) Rev......................... NR/AA 6.250 10/01/12 125,000 133,155
OK State Water (Loan Program) Rev......................... NR/AA 5.400 09/01/15 105,000 106,020
*OK State Water (Loan Program) Rev........................ NR/AA 5.100 09/01/16 415,000 404,530
Oklahoma Cnty., OK Finance Auth. (Epworth Villa) Rev. Ref. NR/NR 6.500 04/01/15 200,000 193,202
Oklahoma Cnty., OK Finance Auth. (Epworth Villa) Rev. Ref. NR/NR 7.000 04/01/22 200,000 196,238
Oklahoma Cnty., OK Indl. Auth. (Benevolent Association)... Baa/NR 5.500 02/01/29 500,000 435,500
Oklahoma Cnty., OK Indl. Auth. (Benevolent
Association) Ref.......................................... Baa/NR 6.150 01/01/11 100,000 103,665
Payne Cty., OK Economic Dev. Auth. (Stillwater Prj.)
Student Hsg. Rev.......................................... Baa-3/NR 6.375 06/01/30 200,000 199,094
------------
TOTAL OKLAHOMA MUNICIPAL BONDS (COST: $16,303,156) ............................................................ $ 15,444,987
------------
SHORT-TERM SECURITIES (3.7%)
Federated Tax-Free Fund 73 (COST: $587,195) ................................................................. $ 587,195
------------
TOTAL INVESTMENTS IN SECURITIES (COST: $16,890,351) ............................................................ $ 16,032,182
OTHER ASSETS LESS LIABILITIES................................................................................... (170,362)
------------
NET ASSETS...................................................................................................... $ 15,861,820
============

<FN>
* 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.
</FN>
</TABLE>

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

FINANCIAL STATEMENTS JULY 31, 2000
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES JULY 31, 2000
---------------------------------------------------
<S> <C>
ASSETS
Investment in securities, at value (cost: $16,890,351).......... $ 16,032,182
Accrued interest receivable..................................... 268,274
Accrued dividends receivable.................................... 1,089
Deferred organization costs..................................... 9,883
Cash............................................................ 26,628
Receivable for fund shares sold................................. 1,755
----------------
Total Assets................................................. $ 16,339,811
----------------
LIABILITIES
Payable for fund shares redeemed................................ $ 10,000
Dividends payable............................................... 67,639
Accrued expenses................................................ 6,844
Security purchases payable...................................... 393,508
----------------
Total Liabilities............................................ $ 477,991
----------------
NET ASSETS........................................................... $ 15,861,820
================

NET ASSETS ARE REPRESENTED BY:
Paid-in capital................................................. $ 16,905,880
Accumulated undistributed net realized gain
(loss) on investments........................................... (185,891)
Unrealized depreciation on investments.......................... (858,169)
----------------
Total amount representing net assets applicable to
1,443,951 outstanding shares of no par common
stock (unlimited shares authorized) ....................... $ 15,861,820
================
Net asset value per share............................................ $ 10.99
================
</TABLE>

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

<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED JULY 31, 2000
---------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest........................................................ $ 889,463
Dividends....................................................... 11,269
----------------
Total Investment Income..................................... $ 900,732
----------------
EXPENSES
Investment advisory fees........................................ $ 81,595
Service fees.................................................... 40,798
Transfer agent fees............................................. 25,463
Accounting service fees......................................... 32,149
Custodian fees.................................................. 2,436
Registration and filing fees.................................... 800
Transfer agent out-of-pocket expenses........................... 1,000
Trustees fees................................................... 2,417
Reports to shareholders......................................... 1,464
Amortization of organizational costs............................ 5,310
Professional fees............................................... 4,467
Insurance expense............................................... 400
----------------
Total Expenses.............................................. $ 198,299
Less expenses waived or absorbed
by the Fund's manager........................................... (127,129)
----------------
Total Net Expenses......................................... $ 71,170
----------------
NET INVESTMENT INCOME................................................ $ 829,562
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES
Net realized gain (loss) on:
Investment transactions......................................... $ (161,051)
Futures transactions............................................ (11,806)
Net change in unrealized appreciation (depreciation) of:
Investments..................................................... (710,454)
----------------
Net Realized And Unrealized Gain (Loss) On
Investments And Futures.................................... $ (883,311)
----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............................................ $ (53,749)
================
</TABLE>

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

FINANCIAL STATEMENTS JULY 31, 2000

STATEMENT OF CHANGES IN NET ASSETS
For the year ended July 31, 2000 and the year ended July 30, 1999
------------------------------------------------------------------
<TABLE>
<CPATION>
For The Year For The Year
Ended Ended
July 31, 2000 July 30, 1999
------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income.......................................... $ 829,562 $ 718,295
Net realized gain (loss) on investment and
futures transactions........................................... (172,857) 103,674
Net change in unrealized appreciation (depreciation)
on investments
and futures.................................................... (710,454) (256,903)
------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Operations.............................................. $ (53,749) $ 565,066
------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income ($.57 and $.56 per share,
respectively) ................................................. $ (829,562) $ (718,295)
Distributions from net realized gain on investment and
futures transactions ($.03 and $.00 per share, respectively)... (48,564) 0
------------------------------------------------
Total Dividends and Distributions............................ $ (878,126) $ (718,295)
------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares................................... $ 3,956,845 $ 8,624,247
Proceeds from reinvested dividends............................. 482,227 441,883
Cost of shares redeemed........................................ (3,780,568) (4,112,946)
Net Increase (Decrease) in Net Assets Resulting
From Capital Share Transactions.............................. $ 658,504 $ 4,953,184
------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................. $ (273,371) $ 4,799,955

NET ASSETS, BEGINNING OF PERIOD..................................... 16,135,191 11,335,236
------------------------------------------------
NET ASSETS, END OF PERIOD........................................... $15,861,820 $ 16,135,191
================================================
</TABLE>

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

NOTES TO FINANCIAL STATEMENTS JULY 31, 2000

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 31, 2000,
totaled $16,667, leaving an unamortized balance of $9,883.

FEDERAL AND STATE INCOME TAXES - The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies and to distribute all of its net investment income and any
net realized gain on investments to its shareholders. Therefore, no provision
for income taxes is required. The Fund has available at July 31, 2000, a net
capital loss carryforward totaling $185,892, which may be used to offset
capital gains realized during subsequent years through July 31, 2008.

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 31, 2000, there were unlimited shares of no par authorized; on
July 31, 2000, and July 30, 1999, there were 1,443,951 and 1,389,571 shares
outstanding, respectively.

Transactions in capital shares were as follows:

<TABLE>
<CAPTION>
Shares
------
For The For The
Year Ended Year Ended
July 31, 2000 July 30, 1999
-------------------------------------------------
<S> <C> <C>
Shares sold............................................ 351,661 730,053
Shares issued on reinvestment of dividends............. 43,178 37,403
Shares redeemed........................................ (340,459) (348,510)
-------------------------------------------------
Net increase (decrease) ............................... 54,380 418,946
=================================================
</TABLE>

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 $332 of investment advisory fees
after partial waiver for the year ended July 31, 2000.

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 under the Plan is calculated daily and paid monthly by the Fund at the
annual rate of 0.25% of the average daily net assets of the Fund. Ranson has
elected to waive all operation service fees for the year ended July 31, 2000.

The Fund has engaged ND Capital, Inc. as agent for the purchase of certain
investment securities. For the year ended July 31, 2000, no commissions were
earned by ND Capital, Inc.

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 $20,395 of transfer agent fees and
expenses after partial waiver for the year ended July 31, 2000. The Fund has
a payable to ND Resources, Inc. of $1,685 at July 31, 2000 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 $32,149 of
accounting service fees for the year ended July 31, 2000. The Fund has a
payable to ND Resources, Inc. of $2,659 at July 31, 2000 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 $3,884,948 and $3,324,658,
respectively, for the year ended July 31, 2000.

NOTE 6. INVESTMENT IN SECURITIES
At July 31, 2000, the aggregate cost of securities for federal income tax
purposes was $16,890,351, and the net unrealized depreciation of investments
based on the cost was $858,169, which is comprised of $48,275 aggregate gross
unrealized appreciation and $906,444 aggregate gross unrealized depreciation.

FINANCIAL HIGHLIGHTS
---------------------
Selected per share data and ratios for the period indicated
<TABLE>
<CAPTION>
For The Period
Since Inception
For the Year For the Year For the Year (September 25, 1996)
Ended Ended Ended Through
July 31, 2000 July 30, 1999 July 31, 1998 July 31, 1997
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........... $ 11.61 $ 11.68 $ 11.86 $ 11.49
-------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income..................... $ .57 $ .56 $ .60 $ .50
Net realized and unrealized gain (loss) on
investment and futures transactions.... (.59) (.07) (.16) .37
-------------------------------------------------------------------------------
Total Income (Loss) From
Investment Operations.................. $ (.02) $ .49 $ .44 $ .87
-------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment income...... $ (.57) $ (.56) $ (.60) $ (.50)
Distributions from net capital gains...... (.03) .00 (.02) .00
-------------------------------------------------------------------------------
Total Distributions.................... $ (.60) $ (.56) $ (.62) $ (.50)
-------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD................. $ 10.99 $ 11.61 $ 11.68 $ 11.86
===============================================================================
TOTAL RETURN................................... (0.12%)(A) 4.25%(A) 3.81%(A) 7.79%(A)(C)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) ........................... $ 15,862 $ 16,135 $ 11,335 $ 6,591
Ratio of net expenses (after expense
assumption) to average net assets......... 0.44%(B) 0.36%(B) 0.20%(B) 0.11%(B)
Ratio of net investment income to
average net assets........................ 5.08% 4.74% 5.08% 3.70%
Portfolio turnover rate................... 20.89% 32.09% 53.32% 63.70%

<FN>
(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 $127,129, $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 1.22%,
1.23%, 0.71% and 2.01%, respectively.
(C) Ratio is annualized
</FN>
</TABLE>

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

<TABLE>
<CAPTION>
DIVIDENDS AND DISTRIBUTIONS PER SHARE
--------------------------------------
From Net From Net
To Shareholders of From Net Realized Short- Realized Long-
Record Payment Date Investment Income Term Gains Term Gains
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
August 30, 1999 August 31, 1999 $ .046466 - -
September 29, 1999 September 30, 1999 .047561 - -
October 28, 1999 October 29, 1999 .045850 - .031047
November 29, 1999 November 30, 1999 .049015 - -
December 30, 1999 December 31, 1999 .047470 - -
January 28, 2000 January 31, 2000 .047512 - -
February 28, 2000 February 29, 2000 .047037 - -
March 30, 2000 March 31, 2000 .047266 - -
April 27, 2000 April 28, 2000 .043879 - -
May 30, 2000 May 31, 2000 .050321 - -
June 29, 2000 June 30, 2000 .047302 - -
July 28, 2000 July 31, 2000 .046992 - -
</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 portfolios constituting the Ranson Managed
Portfolios), including the schedule of investments, as of July 31, 2000, the
related statement of operations for the year ended July 31, 2000, 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 31, 2000, 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.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Oklahoma Municipal Fund of the Ranson Managed Portfolios, as of July 31, 2000,
the results of its operations for the year ended July 31, 2000, 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 31, 2000, 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 1, 2000