Semiannual Report 1996
THE INSTITUTIONAL FUND
Investment Adviser/R. Meeder & Associates
<PAGE>
June 30, 1996
Dear Investor:
We offer this 1996 Semiannual Report for your review in the hope that you will
find valuable information contained herein. To make your analysis of this
report easier, we have switched the page layout to a wider format. This allows
the financial information to be less compact and easier to read. We hope you
find this change helpful.
If you have questions regarding The Institutional Fund 1996 Semiannual Report,
please do not hesitate to call Randall Cobb in our Institutional Sales
Department at 800-494-FLEX (3539) between the hours of 8:30 a.m. and 5 p.m.
EST, Monday through Friday. We will be happy to answer any of your questions.
Cordially,
The Institutional Fund
If you live in, or plan to visit,
Columbus, Ohio please feel free
to stop by our offices.
For an appointment,
call 800-494-3539 (FLEX).
Photographic image of offices in Columbus, OH.
<PAGE>
The Institutional Fund Q The Money Market Portfolio
"Shareholders in The Institutional Fund should know that we strive to invest
The Money Market Portfolio in high quality securities, regardless of the
pressures of the marketplace."
For the 12 months ended June 30, 1996, The Institutional Fund provided a total
return of 5.64 percent, while the average institutional fund provided a total
return of 5.39% for the 12 months ended June 30, 1996, according to Donoghue's
Money Fund Report.
The Institutional Fund's cumulative total return from its inception
(6/15/94) through June 30, 1996 was 11.70 percent, which equates to an average
annual total return of 5.56 percent. The Fund's 30-day annualized compound
yield as of June 30 was 5.36 percent.
Photographic image of Phillip A. Voelker portfolio manager.
Yields on the Rise
Yields on commercial paper with maturities in the three- to six-month
range increased during the second quarter in anticipation of an increase in
the Federal Funds Rate by The Federal Reserve Board at its meeting July 2.
As a result, the Portfolio of The Institutional Fund (as shown at right)
reflects an increase over the first quarter of the year in the amount of
commercial paper it owns. Approximately 53 percent of the Portfolio is
invested in securities with maturities of less than 90 days, which will enable
the Portfolio to reinvest assets at higher rates should an increase in The
Federal Funds rate materialize at the next Federal Reserve Board meeting on
August 20.
The average maturity of the securities owned by The Institutional Fund
increased during the second quarter to the levels of late 1995, after
declining slightly during the first quarter of the year. By June 30, the
average maturity of The Money Market Portfolio was 70 days. This compares with
an average maturity of 50 days at the end of the first quarter and 68 days as
1996 began.
Portfolio Quality
It is important to note that despite the changes outlined above in the
Portfolio of The Institutional Fund, the Fund remains committed to responsible
investments via a self-imposed objective that the Fund invest 100 percent of
its assets in securities ranked as "first tier" as defined in the regulations
under the Investment Company Act of 1940. Money market funds are required by
law to have at least 95 percent of their assets invested in "first tier"
securities.
As the competition among money market funds grows more intense, some
investment advisers may be tempted to reach for higher yielding investments
that may not be as creditworthy as "first tier" securities.
Shareholders in The Institutional Fund should know that we strive to
invest The Money Market Portfolio in high quality securities, regardless of
the pressures of the marketplace.
Pie Charts
The Money Market Portfolio
portfolio exposure as of June 30, 1996
Commercial Paper/54.5%
Corporate Obligations/29.1%
U.S. Gov't Obligations/4.8%
Repurchase Agreements/11.6%
Recent Total Returns
for periods ended June 30, 1996
1 year
Average Institutional Fund 5.39%
The Institutional Fund 5.64%
<PAGE>
<TABLE>
Money Market Portfolio
Portfolio of Investments as of June 30, 1996
<CAPTION>
==================================================================================================================================
FACE AMORTIZED
AMOUNT COST
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER - 54.5%
American Home Products, 5.41%, due 9/06/96 $10,000,000 $9,899,314
American Trading, 5.31%, due 7/25/96 2,700,000 2,690,442
Calcot, 5.36%, due 7/12/96 6,000,000 5,990,173
Calcot, 5.45%, due 7/26/96 8,000,000 7,969,722
Cargill Finance, 5.45%, due 12/27/96 15,000,000 14,593,521
Cooper Tire & Rubber, 5.29%, due 7/12/96 10,000,000 9,983,836
DuPont, 5.43%, due 12/18/96 20,000,000 19,487,167
Duff & Phelps, 5.35%, due 10/09/96 10,000,000 9,851,389
Duff & Phelps, 5.35%, due 10/03/96 7,500,000 7,395,229
GE Capital Corporation, 5.35%, due 7/1/96 15,850,000 15,850,000
GE Capital Corporation, 5.28%, due 10/23/96 10,000,000 9,832,800
LCI Funding, 5.42%, due 9/20/96 9,517,000 9,400,940
Merrill Lynch & Company, 5.32%, due 11/15/96 5,000,000 4,898,772
Nynex Corporation, 5.41%, due 8/09/96 6,402,000 6,364,479
Nynex Corporation, 5.32%, due 7/03/96 15,000,000 14,995,567
Parker Hannifin, 5.47%, due 7/23/96 3,500,000 3,488,300
Raytheon, 5.35%, due 7/08/96 16,000,000 15,983,356
Shady Point, 5.34%, due 7/11/96 12,500,000 12,481,458
Southern California Edison, 5.32%, due 9/27/96 9,500,000 9,376,458
Tambrands, 5.37%, due 8/13/96 3,000,000 2,980,758
Toronto Dominion, 5.30%, due 11/06/96 10,000,000 9,811,556
U.S. West Capital Funding, 5.58%, due 7/08/96 10,880,000 10,868,195
Walt Disney Company, 5.45%, due 12/26/96 15,000,000 14,595,791
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $228,789,223) 228,789,223
- ----------------------------------------------------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 29.1%
American Telephone & Telegraph Capital Corporation, 6.99%, due 10/12/96 1,000,000 1,004,552
American Telephone & Telegraph Capital Corporation, 4.52%, due 8/30/96 250,000 249,441
American Telephone & Telegraph Capital Corporation, 7.40%, due 11/01/96 500,000 502,109
American Telephone & Telegraph Capital Corporation, 4.38%, due 10/01/96 232,000 231,447
American Brands Corporation, 8.32%, due 8/15/96 600,000 602,033
Associates Corporation, 4.75%, due 8/01/96 250,000 249,755
Associates Corporation, 7.50%, due 10/15/96 150,000 150,634
Associates Corporation, 4.63%, due 11/30/96 450,000 448,060
<PAGE>
<CAPTION>
==================================================================================================================================
FACE AMORTIZED
AMOUNT COST
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Avery Dennison, 7.80%, due 10/01/96 5,000,000 5,025,100
* Bank One Capital Demand Note, 5.50%, next redemption date 7/05/96,
due 4/01/2113 4,608,000 4,608,000
Bat Industries, 8.60%, due 8/30/96 550,000 551,997
Bell TriLSG, 8.05%, due 2/19/97 500,000 507,914
* Care Life Project Floating Rate Note, 5.60%, next redemption
date 7/02/96, due 8/01/2111 1,375,000 1,375,000
Caterpillar Incorporated, 5.05%, due 1/15/97 . 500,000 499,057
Citicorp, 8.75%, due 11/01/96 100,000 101,118
DuPont, 8.45%, due 10/15/96 880,000 886,387
Eli Lilly Corporation, 6.58%, due 12/20/96 250,000 251,109
* Espanola/Nambe Variable Rate Demand Note, 5.60%, next redemption date
7/02/96, due 6/01/2006 2,500,000 2,500,000
* Exxon Shipping Floating Rate Note, 5.39%, next redemption date 7/02/96,
due 10/01/2111 7,000,000 7,000,000
Ford Motor Credit Corporation, 8.80%, due 8/08/96 1,000,000 1,003,050
Ford Motor Credit Corporation, 4.85%, due 8/23/96 400,000 399,354
Ford Motor Credit Corporation, 9.07%, due 7/05/96 693,000 693,223
Ford Motor Credit Corporation, 8.25%, due 7/15/96 706,000 706,687
Ford Motor Credit Corporation, 9.10%, due 7/05/96 1,000,000 1,000,333
Ford Motor Credit Corporation, 8.00%, due 10/01/96 3,000,000 3,015,091
Ford Motor Credit Corporation, 9.07%, due 7/05/96 200,000 200,067
General Motors Acceptance Corporation, 8.00%, due 10/01/96 275,000 276,506
General Motors Acceptance Corporation, 7.40%, due 1/14/97 170,000 171,971
* General Motors Acceptance Corporation Floating Rate Note, 5.42%,
next redemption date 10/13/96, due 4/13/98 10,000,000 10,000,000
General Telephone, California, 6.00%, due 10/01/96 1,000,000 1,000,000
* Hancor Incorporated Floating Rate Note, 5.60%, next redemption date 7/02/95,
due 12/01/2004 900,000 900,000
Hertz Corporation, 9.125%, due 8/01/96 2,850,000 2,857,628
Hertz Corporation, 10.125%, due 3/01/97 2,000,000 2,061,639
IBM Credit Corporation, 5.06%, due 11/15/96 1,350,000 1,345,807
IBM Credit Corporation 4.85%, due 11/05/96 3,000,000 2,989,203
ITT Hartford, 7.25%, due 12/01/96 500,000 503,896
International Bank, 8.75%, due 9/06/96 100,000 100,530
MCI Communications, 7.625%, due 11/07/96 6,570,000 6,624,088
* Merrill Lynch & Company, Floating Rate Note, 5.46%, due 7/24/96 3,000,000 3,000,000
* Merrill Lynch & Company, Floating Rate Note, 5.55%, due 11/18/96 10,000,000 10,000,000
Mobil Corporation, 6.50%, due 12/17/96 500,000 500,000
Morgan Stanley Incorporated, 7.32%, due 1/15/97 500,000 504,137
Norwest Financial, 8.875%, due 7/01/96 494,000 494,000
* Olen Corporation, Floating Rate Note, 5.60%, next redemption date 7/02/96,
due 12/01/2004 900,000 900,000
Pepsico Incorporated, 7.875%, due 8/15/96 2,350,000 2,355,109
<PAGE>
<CAPTION>
==================================================================================================================================
FACE AMORTIZED
AMOUNT COST
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pfizer Incorporated, 7.125%, due 10/01/96 1,200,000 1,203,984
Philip Morris Companies, 8.875%, due 7/01/96 1,500,000 1,500,000
Philip Morris Companies, 8.75%, due 12/01/96 10,125,000 10,261,300
Philip Morris Companies, 7.50%, due 3/15/97 370,000 375,506
Philip Morris Companies, 8.88%, due 7/01/96 550,000 550,000
* Presrite Corporation Floating Rate Note, 5.60%, next redemption date
7/02/96, due 1/01/2004 2,710,000 2,710,000
Private Export Funding, 7.125%, due 10/31/96 570,000 572,441
Sears Roebuck & Company, 9.00%, due 9/15/96 1,000,000 1,006,158
Sears Roebuck & Company, 7.75%, due 11/25/96 700,000 706,446
Sears Roebuck & Company, 8.55%, due 8/01/96 2,500,000 2,505,501
Southern California Edison, 5.90%, due 1/15/97 1,000,000 1,003,357
Southwestern Bell, 7.90%, due 8/23/96 1,5300,000 1,504,103
Texaco Capital Corporation, 9.00%, due 11/15/96 1,000,000 1,013,595
U.S. West Capital Funding Corporation, 8.00%, due 10/15/96 1,290,000 1,298,114
Virginia Electric & Power, 8.05%, due 12/11/96 1,000,000 1,011,850
Waste Management Corporation, 7.875%, due 8/15/96 5,000,000 5,013,175
* White Castle Corporation, Floating Rate Note, 5.60%, next redemption date
7/02/96, due 12/01/2010 9,000,000 9,000,000
World Book Finance Corporation, 8.125%, due 9/01/96 500,000 501,738
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(Cost $122,083,300) 122,083,300
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS - 0.0%
U.S. Treasury Bill, 4.906%, due 1/09/97 63,100 61,451
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL U.S. TREASURY BILLS
(Cost $61,451) 61,451
- ----------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 4.8%
Federal Home Loan Mortgage Corporation, 5.10%, due 1/13/97 100,000 99,919
Federal Home Loan Mortgage Corporation, 7.69%, due 12/16/96 1,050,000 1,059,436
Federal Home Loan Mortgage Corporation, 7.88%, due 12/20/96 775,000 782,399
Federal Farm Credit Note, 5.60%, due 7/01/96 120,000 120,000
Federal Home Loan Bank, 7.70%, due 8/26/96 100,000 100,311
Federal Home Loan Bank, 5.69%, due 7/12/96 195,000 195,023
Federal Home Loan Bank, 4.84%, due 8/26/96 1,000,000 998,665
Federal Home Loan Bank, 5.81%, due 4/08/97 2,000,000 2,002,500
<PAGE>
<CAPTION>
==================================================================================================================================
FACE AMORTIZED
AMOUNT COST
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Federal National Mortgage Association, 8.15%, due 8/12/96 150,000 150,480
Federal National Mortgage Association, 8.63%, due 9/10/96 300,000 301,577
Federal National Mortgage Association, 7.70%, due 12/10/96 600,000 605,110
* Student Loan Marketing Association Floating Rate Note, 5.48%,
due 8/03/99, next redemption date 7/02/96 4,350,000 4,354,520
* Student Loan Marketing Association Floating Rate Note, 5.43%,
due 11/10/98, next redemption date 7/02/96 5,000,000 5,000,000
* Student Loan Marketing Association Floating Rate Note, 5.41%,
due 11/24/97, next redemption date 7/02/96 2,000,000 1,999,712
Tennesee Valley Authority, 7.63%, due 9/15/96 2,200,000 2,207,898
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $19,977,550) 19,977,550
- ----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 11.6%
(Collateralized by U.S. Government obligations - market value $48,878,684)
Paine Weber Incorporated, dated 6/28/96, 5.55%, due 7/01/96 48,482,000 48,482,000
Star Bank N.A., dated 6/28/96, 5.00%, due 7/01/96 360,000 360,000
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $48,842,000) 48,842,000
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100%
(Cost $419,753,524) $419,753,524
==================================================================================================================================
<FN>
* - Floating Rate as of 6/30/96.
See accompanying notes to financial statements
</FN>
</TABLE>
<PAGE>
<TABLE>
Statement of Assets & Liabilities
June 30, 1996 (unaudited)
====================================================================================
<CAPTION>
INSTITUTIONAL
FUND
<S> <C>
Assets:
- ------------------------------------------------------------------------------------
Investment in corresponding portfolio $265,544,859
- ------------------------------------------------------------------------------------
Unamortized organizational costs 9,534
- ------------------------------------------------------------------------------------
Prepaid expenses and other assets 28,107
Total Assets 265,582,500
- ------------------------------------------------------------------------------------
Liabilities:
- ------------------------------------------------------------------------------------
Dividends payable 591,911
- ------------------------------------------------------------------------------------
Accrued transfer agent and
administrative fees 5,613
- ------------------------------------------------------------------------------------
Other accrued liabilities 3,294
- ------------------------------------------------------------------------------------
Total Liabilities 600,818
- ------------------------------------------------------------------------------------
Net Assets:
- ------------------------------------------------------------------------------------
Capital 264,981,682
- ------------------------------------------------------------------------------------
Net Assets $264,981,682
====================================================================================
Capital Stock Outstanding 264,981,682
- ------------------------------------------------------------------------------------
Net Asset Value, Offering and
Redemption Price Per Share $1.00
- ------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
For the six months ended June 30, 1996 (unaudited)
====================================================================================
<CAPTION>
INSTITUTIONAL
FUND
<S> <C>
- ------------------------------------------------------------------------------------
Net investment income from corresponding portfolio:
- ------------------------------------------------------------------------------------
Interest $4,756,339
- ------------------------------------------------------------------------------------
Expenses (160,510)
- ------------------------------------------------------------------------------------
Total Net Investment Income From
Corresponding Portfolio 4,595,829
- ------------------------------------------------------------------------------------
Fund Expenses:
- ------------------------------------------------------------------------------------
Legal fees 884
Audit fees 2,606
Printing and postage 1,458
Administrative fee 23,639
Transfer agent fees 44,650
Trustees fees and expenses 2,769
Insurance 1,201
Distribution plan 12,016
Amortization of organizational costs 1,593
24f-2 filing fee 9,687
Other expenses 2,331
- ------------------------------------------------------------------------------------
Total expenses 102,834
Expenses reimbursed by adviser (53,190)
- ------------------------------------------------------------------------------------
Total expenses - net 49,644
- ------------------------------------------------------------------------------------
INVESTMENT INCOME - NET 4,546,185
- ------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $4,546,185
====================================================================================
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
For the six months ended June 30, 1996 (unaudited) and the year
ended December 31, 1995
==================================================================================================================================
<CAPTION>
INSTITUTIONAL FUND
For the six For the year ended
months ended December 31, 1995
INCREASE IN NET ASSETS: June 30, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Investment income - net $4,546,185 $3,327,472
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 4,546,185 3,327,472
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income - net (4,546,185) (3,327,472)
- ----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from dividends and distributions (4,546,185) (3,327,472)
- ----------------------------------------------------------------------------------------------------------------------------------
CAPITAL TRANSACTIONS:
Net proceeds from sales 429,827,039 389,173,505
Reinvestment of dividends 2,015,260 1,987,756
Cost of redemptions (280,065,822) (337,450,306)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital share transactions 151,776,477 53,710,955
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 151,776,477 53,710,955
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - Beginning of period 113,205,205 59,494,250
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - End of period $264,981,682 $113,205,205
==================================================================================================================================
SHARE TRANSACTIONS:
Issued 429,827,039 389,173,505
Reinvested 2,015,260 1,987,756
Redeemed (280,065,822) (337,450,306)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in shares 151,776,477 53,710,955
- ----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
Selected per share data and ratios for an average share outstanding during each period
==================================================================================================================================
<CAPTION>
Institutional Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended For the period
June 30, 1996 (Unaudited) December 31, 1995 June 15, 1994* to
December 31, 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of period $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment income 0.03 0.06 0.03
- ----------------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations 0.03 0.06 0.03
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions
Dividends (from net investment income) (0.03) (0.06) (0.03)
Total Distributions (0.03) (0.06) (0.03)
Net Asset Value, End of Period $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return 2.67% 6.01% 4.80%1
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of period ($000) 264,982 113,205 59,494
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.25% 1 0.25% 0.20% 1
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of Net Income to Average Net Assets 5.30% 1 5.87% 4.51% 1
Ratio of Expenses to Average Net Assets,
before waiver of fees 0.46% 1 0.55% 0.46% 1
Ratio of Net Income to Average Net Assets,
before waiver of fees 5.09% 1 5.57% 4.25% 1
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
1 Annualized
* Date of inception
See accompanying notes to financial statements
</FN>
</TABLE>
<PAGE>
The Institutional Fund
Notes to Financial Statements, June 30, 1996
==============================================================================
1. ORGANIZATION
The Flex-Partners Trust was organized in 1992 and is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company. The Institutional Fund (the "Fund") commenced operations
on June 15, 1994 when the Fund began investing all of its investable assets in
a corresponding open-end management investment company (the "Portfolio")
having the same investment objectives as the Fund. On June 30, 1996 The
Institutional Fund held approximately 64% of the total assets of The Money
Market Portfolio.
The financial statements of the Portfolio, including the Portfolio of
Investments, are included elsewhere in this report and should be read in
conjunction with the financial statements of the Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
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.
Valuation of Investments -- Valuation of securities by the Portfolio is
discussed at Note 1 of the Notes to Financial Statements of the Money Market
Portfolio which are included elsewhere in this report.
Income Taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
Organizational Costs -- The cost related to the organization of the Fund
has been deferred and is being amortized on a straight-line basis over a
five-year period.
3. INVESTMENT ADVISORY, ACCOUNTING AND TRANSFER AGREEMENTS
R. Meeder & Associates (RMA), a wholly-owned subsidiary of Muirfield
Investors, Inc. (MII), provides the Portfolio with investment management
research, statistical and advisory services.
Mutual Funds Service Co., (MFS), a wholly-owned subsidiary of MII, serves
as stock transfer, dividend disbursing and shareholder servicing agent for the
Fund. Subject to a $4,000 annual minimum fee the Fund incurs an annual fee
equal to or the greater of $20 per shareholder account or 0.06% of the Fund's
average net assets, payable monthly.
MFS also provides the Trust with certain administrative services. The Fund
incurs an annual fee, payable monthly, of .03% of the Fund's average net
assets.
The Fund has adopted a distribution expense plan pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the "Plans"). Pursuant to the Plans,
the Fund may annually incur certain expenses associated with the distribution
of fund shares in amounts not to exceed 3/100 of 1% of the Fund's average net
assets.
Certain officers and/or trustees of the Fund and the Portfolio are officers
and/or directors of MII, RMA and MFS.
4. CAPITAL SHARE TRANSACTIONS
At June 30, 1996, an indefinite number of shares of $0.10 par value
stock were authorized in the Fund and capital amounted to $264,981,682 in The
Institutional Fund. Transactions in capital stock are included elsewhere in
this report.
<PAGE>
<TABLE>
Statement of Assets and Liabilities
June 30, 1996 (unaudited)
====================================================================================
<CAPTION>
MONEY
MARKET
PORTFOLIO
- ------------------------------------------------------------------------------------
<S> <C>
Assets:
Investments at market value* $370,911,524
- ------------------------------------------------------------------------------------
Repurchase Agreements* 48,842,000
- ------------------------------------------------------------------------------------
Cash 239,446
Interest receivable 2,307,728
Prepaid/Other assets 2,572
Unamortized organization costs 5,055
- ------------------------------------------------------------------------------------
Total Assets 422,308,325
- ------------------------------------------------------------------------------------
Liabilities:
Payable for securities purchased 10,720,311
- ------------------------------------------------------------------------------------
Payable to investment adviser 43,693
- ------------------------------------------------------------------------------------
Accrued fund accounting fees 4,853
Other accrued liabilities 14,172
- ------------------------------------------------------------------------------------
Total Liabilities 10,783,029
- ------------------------------------------------------------------------------------
Net Assets
Capital 411,525,296
- ------------------------------------------------------------------------------------
Net Assets $411,525,296
====================================================================================
*Securities at cost 419,753,524
- ------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
For the six months ended June 30, 1996 (unaudited)
====================================================================================
<CAPTION>
MONEY
MARKET
PORTFOLIO
- ------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME - NET:
Interest $8,981,549
- ------------------------------------------------------------------------------------
Total Income 8,981,549
- ------------------------------------------------------------------------------------
Expenses:
- ------------------------------------------------------------------------------------
Investment advisory fees 480,675
Legal fees 872
Audit fees 8,118
Custodian fees 8,662
Accounting fees 33,958
Trustees fees and expenses 2,657
Insurance 2,185
Amortization of organization cost 2,482
Other expenses 182
- ------------------------------------------------------------------------------------
Total Expenses 539,791
Investment advisory fees waived (236,343)
- ------------------------------------------------------------------------------------
Total Expenses - net 303,448
- ------------------------------------------------------------------------------------
INVESTMENT INCOME - NET 8,678,101
- ------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,678,101
====================================================================================
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
For the six months ended June 30, 1996 (unaudited) and the year ended
December 31, 1995
====================================================================================
<CAPTION>
MONEY MARKET PORTFOLIO
Six months Year ended
ended June 30, December 31,
1996 1995
<S> <C> <C>
- ------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------------------------------------
OPERATIONS:
Investment income - net $8,678,101 $11,720,462
- ------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 8,678,101 11,720,462
- ------------------------------------------------------------------------------------
TRANSACTIONS OF INVESTORS'
BENEFICIAL INTERESTS:
Contributions 624,120,515 753,617,719
Withdrawals (475,921,694) (735,213,083)
- ------------------------------------------------------------------------------------
Net increase in net
assets resulting from
transactions of investors'
beneficial interests 148,198,821 18,404,636
- ------------------------------------------------------------------------------------
TOTAL INCREASE
IN NET ASSETS 156,876,922 30,125,098
- ------------------------------------------------------------------------------------
NET ASSETS -
Beginning of period 254,648,374 224,523,276
- ------------------------------------------------------------------------------------
NET ASSETS -
End of period $411,525,296 $254,648,374
====================================================================================
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
Ratios/Supplemental Data
==================================================================================================================================
Money Market Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Six Months Ended Year Ended December 31, For The Period
June 30, 1996 (unaudited) 1995 1994 1993 May 1, 1992*
to Dec. 31, 1992
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Assets, End of Period (000) 411,525 254,648 224,523 200,148 244,272
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 0.19% 1 0.21% 0.19% 0.19% 0.18% 1
Ratio of Net Income to Average Net Assets 5.33% 1 5.87% 4.28% 3.09% 3.60% 1
Ratio of Expenses to Average Net Assets,
before waiver of fees 0.34% 1 0.38% 0.39% 0.40% 0.40% 1
Ratio of Net Income to Average Net Assets,
before waiver of fees 5.18% 1 5.70% 4.08% 2.88% 3.38% 1
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
1 Annualized
* Date of Inception
</FN>
</TABLE>
<PAGE>
Money Market Portfolio
Notes to Financial Statements, June 30, 1996
==============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Money Market Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940, as amended, as a no-load, open-end management
investment company which was organized as a trust under the laws of the State
of New York. The Declaration of Trust permits the Trustees to issue beneficial
interests in the Portfolio. The following is a summary of significant
accounting policies followed by the Portfolio.
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.
Investments -- Money market securities held in the Money Market Portfolio
are valued at amortized cost, which approximates market value in accordance
with Rule 2a-7 of the Investment Company Act of 1940. Amortized costs also
represents cost for federal income tax purposes.
Repurchase Agreements --It is the Portfolio's policy to take possession of
the collateral for repurchase agreements before payment is made to the seller.
Market value of the collateral at the date of purchase must be at least 100%
of the amount of the repurchase agreement.
Income Taxes --It is the Portfolio's policy to comply with the
requirements of the Internal Revenue Code applicable to partnerships.
Therefore, no Federal income tax provision is required.
Organizational Costs -- The costs related to the organization the
Portfolio has been deferred and is being amortized on a straight-line basis
over a five-year period.
Other -- The Portfolio follows industry practice and records security
transactions on the trade date. Gains and losses on security transactions are
determined on the first-in, first-out ("FIFO") basis. Interest income is
recognized as earned.
2. INVESTMENT ADVISORY, ACCOUNTING AND TRANSFER AGREEMENTS
R. Meeder & Associates (RMA), a wholly-owned subsidiary of Muirfield
Investors, Inc. (MII), provides the Portfolio with investment management,
research, statistical and advisory services, and pays certain other expenses
of the Portfolio. For such services the Portfolio pays monthly a fee based
upon the average daily value of the Portfolio's net assets at the following
annual rate: 0.40% of average net assets up to $100 million and 0.25% of
average net exceeding $100 million. During the six month period ended June
30,1994, RMA voluntarily waived investment advisory fees in the Portfolio.
Mutual Funds Service Co. (MFS), a wholly-owned subsidiary of MII, serves
as accounting services agent for the Portfolio. The minimum annual fee for all
such services is $30,000. Subject to the applicable minimum fee, The
Portfolio's annual fee, payable monthly, is computed at the rate of 0.15% of
the first $10 million, 0.10% of the next $20 million, 0.02% of the next $50
million and 0.01% in excess of $80 million of the Portfolio's average net
assets.
Certain officers and/or trustees of each Portfolio are officers and/or
directors of MII, RMA and MFS.
<PAGE>
Manager and Investment Adviser
R. Meeder & Associates
6000 Memorial Drive
P.O. Box 7177
Dublin, Ohio 43017
Board of Trustees
Milton S. Bartholomew
Dr. Roger D. Blackwell
John M. Emery
Richard A. Farr
William L. Gurner
Robert S. Meeder, Sr.
Russel G. Means
Lowell G. Miller
Walter L. Ogle
Philip A. Voelker
Custodian
Star Bank, N.A., Cincinnati
Cincinnati, Ohio 45201
Transfer Agent and Dividend Disbursing Agent
Mutual Funds Service Co.
6000 Memorial Drive
Dublin, Ohio 43017
Auditors
KPMG Peat Marwick LLP
Columbus, Ohio 43215
<PAGE>
THE INSTITUTIONAL FUND
P.O. Box 7177
Dublin, Ohio 43017
