THE INSTITUTIONAL FUND
Semiannual Report 1997
[LOGO] Hands plotting points on a graph.
<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 CONTENTS
William L. Gurner --------------------------------
Robert S. Meeder. Sr. Portfolio Manager Commentary 3
Robert S. Meeder, Jr.
Russel G. Means FINANCIAL DATA
Lowell G. Miller Portfolio 4
Walter L. Ogle Fund Financials 6
Philip A. Voelker Portfolio Financials 9
CUSTODIAN
Star Bank, N.A. Cincinnati
Cincinnati, Ohio 45201
TRANSFER AGENT DIVIDEND DISBURSING AGENT
Mutual Funds Service Co.
6000 Memorial Drive
Dublin, Ohio 43017
AUDITORS
KPMG Peat Marwick L.L.P.
Columbus, Ohio 43215
<PAGE>
[PHOTO] Philip A. Voelker, Portfolio Manager
The Institutional Fund remained one of the nation's leading institutional
money market funds as the second quarter ended, according to data from
independent money market fund monitor, IBC Financial Data, Inc.
The 7-day simple yield for The Institutional Fund as of June 30, 1997 was
5.58 percent and the 7-day compound yield was 5.43 percent. As of the same date,
the average institutional money market fund provided a 7-day simple yield of
5.31 percent and a 7-day compound yield of 5.45 percent.
The Institutional Fund provided a total return for the 12 months ended June
30 of 5.44 percent, compared to the return from the average institutional money
market fund of 5.27 percent, according to IBC, Inc.
MARKET PERSPECTIVE
Following March's increase in the benchmark Federal Funds rate by the
Federal Reserve Board, short-term interest rates were stable throughout the
second quarter. Steadily declining long-term interest rates during the second
quarter indicated investors` general approval of the Federal Reserve's handling
of the economy so far in 1997. Yields available from the benchmark 30-year
Treasury declined from 7.10 percent at the end of the first quarter to 6.80
percent on June 30. Treasury Bill rates slipped from 5.33 percent on March 31 to
5.25 by quarter's end.
The average maturity of the securities in the portfolio of The
Institutional Fund increased from the low 40-day range late in the first quarter
to the upper 60-day range by the end of the second quarter. We increased the
average maturity of the Portfolio in the face of the July 2 Federal Reserve
Board meeting because short-term interest rates were stable and long-term
interest rates were declining. As you may recall, The Institutional Fund acts
during periods of declining rates to invest in longer-term securities (up to one
year) in an effort to capture higher yields for a longer period of time.
For now, it appears that inflation is in check and interest rates are in a
declining trend. As the second quarter closed, the Federal Reserve seemed to be
content with the effects of the interest rate hikes it has implemented so far
this year. We are alert for changes in the marketplace that would indicate a
rising trend in interest rates and are prepared to adjust the portfolio of The
Institutional Fund in favor of shorter maturities, if necessary. We continue to
strive for the best possible yields from the high quality investments we choose
for The Institutional Fund in order to continue to earn competitive yields for
our shareholders and maintain our position as one of the nation's leading money
market investments.
The total return data shown at right assumes reinvestment of all dividends and
capital gains distributions. All performance data represents past performance
and does not necessarily indicate future performance results. The Investment
Adviser waived a portion of its management fee to reduce the operating expenses
of The Instiutional Fund for the period shown above. The Institutional Fund will
seek to maintain a constant net asset value of $1.00 per share, although there
is no guarantee that it will be able to do so. Investments in The Institutional
Fund are neither insured nor guaranteed by the U.S. Government.
PORTFOLIO EXPOSURE
THE MONEY MARKEDT PORTFOLIO
The following information was presented as a pie chart:
% of Portfolio
--------------
Commercial Paper 42.0%
Corporate Obligations 40.4%
U.S. Government Agency Obligations 2.9%
U.S. Treasury Obligations 4.3%
Repurchase Agreements 10.4%
AVERAGE ANNUAL TOTAL RETURNS
THE INSTITUTIONAL FUND as of June 30, 1997
The following information was presented as a bar graph:
1 year
------
The Institutional Fund 5.44%
The Average Institutional Fund* 5.27%
* Per IBC, Inc. as of June 30, 1997.
<PAGE>
MONEY MARKET PORTFOLIO
Portfolio of Investments as of June 30, 1997 (Unaudited)
COUPON/ AMORTIZED
YIELD MATURITY FACE AMOUNT COST
- --------------------------------------------------------------------------------
COMMERCIAL PAPER - 42.0%
American Trading & Products 5.58% 08/19/97 $8,000,000 $7,939,240
Cincinnati Bell 5.56% 08/18/97 15,000,000 14,888,800
Duff & Phelps Utilities 5.32% 07/10/97 10,000,000 9,986,700
Duff & Phelps Utilities 5.30% 08/11/97 10,000,000 9,939,639
Equitable of Iowa 5.70% 07/21/97 10,100,000 10,068,017
Franklin Resources 5.65% 08/04/97 11,150,000 11,090,502
GE Capital Corp. 5.50% 11/19/97 14,000,000 13,698,417
General Motors Acceptance Corp. 5.70% 12/17/97 10,000,000 9,732,416
Greenwich Funding 5.69% 09/19/97 12,638,000 12,479,323
Greenwich Funding 5.57% 08/19/97 2,020,000 2,004,686
Greenwich Funding 5.58% 08/08/97 4,770,000 4,741,905
Hasbro, Inc. 5.60% 10/31/97 6,600,000 6,474,747
MCI Communications 5.62% 09/23/97 15,000,000 14,803,300
Merrill Lynch 5.55% 07/02/97 12,500,000 12,498,073
Merrill Lynch 5.38% 07/30/97 10,000,000 9,956,660
New Jersey Natural Gas 5.55% 07/02/97 5,000,000 4,999,229
Toronto Dominion 5.61% 12/10/97 15,000,000 14,621,325
Tribune Co. 5.65% 12/22/97 17,000,000 16,535,758
================================================================================
TOTAL COMMERCIAL PAPER
(Cost $186,458,737) 186,458,737
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - 40.4%
American General Finance Corp. 9.95% 10/29/97 500,000 506,282
American General Finance Corp. 9.75% 12/01/97 1,000,000 1,016,744
American General Finance Corp. 8.25% 01/15/98 400,000 404,492
Associates Corp. 5.88% 07/21/97 500,000 499,827
Associates Corp. 6.41% 08/15/97 500,000 500,218
Associates Corp. 7.30% 03/15/98 200,000 201,671
Bank of America 6.00% 07/15/97 200,000 200,013
Care Life Project
next redemption date 07/03/97 5.70%* 08/01/11 1,350,000 1,350,000
Central Illinois Public Services 6.13% 07/01/97 2,000,000 2,000,000
Chase Manhattan Bank 7.50% 12/01/97 300,000 301,723
Chrysler Financial Corp. 5.88% 12/12/97 350,000 350,090
Chrysler Financial Corp. 8.26% 01/26/98 10,000,000 10,119,167
Cincinnati Bell 6.70% 12/15/97 6,055,000 6,073,865
Comerica 5.95% 09/15/97 500,000 500,130
Consolidated Rail 6.00% 07/01/97 142,000 142,000
Cooper Industries 7.81% 10/21/97 3,000,000 3,014,182
Cooper Industries 7.77% 10/15/97 5,000,000 5,024,392
Coughlin Family Properties
next redemption date 07/03/97 5.71%* 05/15/07 4,950,000 4,950,000
Doren, Inc.
next redemption date 07/03/97 5.70%* 01/01/13 675,000 675,000
Espanola/Nambe
next redemption date 07/03/97 5.70%* 06/01/06 2,500,000 2,500,000
Exxon Shipping
next redemption date 07/03/97 5.60%* 10/01/11 7,000,000 7,000,000
First Union Corp. 6.75% 01/15/98 6,100,000 6,123,109
First Union Corp. 6.75% 01/15/98 119,000 119,392
Ford Holdings 9.25% 07/15/97 3,368,000 3,372,067
Ford Motor Co. 10.35% 10/01/97 1,125,000 1,136,773
Ford Motor Credit Corp.
next redemption date 07/15/97 6.75% 07/15/06 350,000 350,137
Gannett, Inc. 5.25% 10/27/97 2,525,000 2,511,139
GE Capital Corp. 4.55% 03/01/98 2,500,000 2,488,905
General Mills 5.70% 10/03/97 1,000,000 999,267
General Motors Acceptance Corp.
next redemption date 07/03/97 7.02%* 04/13/98 10,000,000 10,000,000
Hancor, Inc.
next redemption date 07/03/97 5.70%* 12/01/04 800,000 800,000
H.J. Heinz 5.50% 09/15/97 6,500,000 6,495,813
Kellogg Co. 5.90% 07/15/97 1,000,000 1,000,013
Marshall & Isley 7.38% 10/31/97 10,000,000 10,050,451
Monsanto Co. 8.80% 07/15/97 2,500,000 2,502,871
Morgan Stanley, Inc. 9.25% 03/01/98 1,250,000 1,276,289
Mubea, Inc.
next redemption date 07/03/97 5.70%* 12/01/04 5,000,000 5,000,000
National Rural Utilities 8.50% 02/15/98 125,000 126,753
NationsBank 6.63% 01/15/98 365,000 366,003
Norwest Corp. 6.50% 11/15/97 150,000 150,333
Norwest Corp. 7.70% 11/15/97 2,000,000 2,011,785
Osco Industries
next redemption date 07/03/97 5.70%* 12/01/07 3,000,000 3,000,000
Paccar Finance 5.12% 07/10/97 4,000,000 3,999,475
<PAGE>
COUPON/ AMORTIZED
YIELD MATURITY FACE AMOUNT COST
- --------------------------------------------------------------------------------
Pacific Gas & Electric 8.95% 12/01/97 1,000,000 1,012,333
Philip Morris Companies 9.35% 12/01/97 210,000 212,700
Philip Morris Companies 9.50% 11/21/97 500,000 504,277
Philip Morris Companies 9.25% 09/22/97 1,568,000 1,589,570
Portland General Electric 6.75% 09/15/97 3,000,000 3,006,355
Presrite Corp.
next redemption date 07/03/97 5.70%* 01/01/04 2,375,000 2,375,000
Public Service Gas & Electric 7.13% 11/01/97 5,350,000 5,367,128
RI Lampus Co.
next redemption date 07/03/97 5.70%* 01/01/13 2,440,000 2,440,000
Sears Roebuck & Company 9.25% 08/01/97 2,000,000 2,005,513
Southern California Edison 6.13% 07/15/97 2,500,000 2,500,362
Southern California Edison 5.88% 02/01/98 100,000 100,000
Southwest Bell Corp. 4.50% 08/01/97 120,000 119,885
Student Loan Marketing Assoc. 6.00% 04/07/98 22,555,000 22,555,839
Surgery Financing Co.
next redemption date 07/03/97 5.70%* 04/01/20 3,585,000 3,585,000
U.S. Leasing 7.00% 11/01/97 200,000 200,588
Walt Disney Co. 8.00% 12/19/97 1,325,000 1,335,906
White Castle Project
next redemption date 07/03/97 5.70%* 12/01/10 8,750,000 8,750,000
Wisconsin Power & Light 6.13% 07/15/97 13,000,000 13,002,241
================================================================================
TOTAL CORPORATE OBLIGATIONS
(Cost $181,873,068) 181,873,068
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 2.9%
Federal Home Loan Mortgage Corp. 6.47% 07/07/97 500,000 500,063
Federal National Mortgage Assoc. 5.73% 04/13/98 500,000 498,652
Student Loan Marketing Assoc.
next redemption date 07/01/97 5.57%* 11/24/97 2,000,000 1,999,920
Student Loan Marketing Assoc.
next redemption date 07/01/97 5.46%* 11/10/98 5,000,000 5,000,000
Student Loan Marketing Assoc.
next redemption date 07/01/97 5.47%* 08/03/99 4,350,000 4,353,056
Tennesee Valley Authority
called @ $100, 09/15/97 7.88% 09/15/01 500,000 501,994
================================================================================
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $12,853,685) 12,853,685
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 4.3%
U.S. Treasury Bill 5.27% 01/08/98 63,100 61,338
U.S. Treasury Note 6.00% 11/30/97 10,000,000 10,019,903
U.S. Treasury Note 6.00% 08/31/97 4,000,000 4,001,311
U.S. Treasury Note 5.00% 01/31/98 5,000,000 4,981,175
================================================================================
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $19,063,727) 19,063,727
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 10.4%
** Paine Weber Inc.,
dated 06/30/97 6.10% 07/01/97 34,899,000 34,899,000
***Star Bank, dated 06/30/97 5.25% 07/01/97 5,535,000 5,535,000
================================================================================
TOTAL REPURCHASE AGREEMENTS
(Cost $40,434,000 ) 40,434,000
- --------------------------------------------------------------------------------
================================================================================
TOTAL INVESTMENTS - 100.0%
(Cost $440,683,217 ) $440,683,217
- --------------------------------------------------------------------------------
* Floating Rate as of 06/30/97.
** Collateralized by U.S. government obligations--market value $35,103,120.
***Collateralized by U.S. government obligations--market value $5,659,690.
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (Unaudited)
- -----------------------------------------------------------------------------
Assets:
- -----------------------------------------------------------------------------
Investment in corresponding portfolio at value $307,652,240
Unamortized organization costs 6,340
Other assets 89,760
Total Assets 307,748,340
=============================================================================
Liabilites:
Dividends payable 1,093,372
Accrued transfer agent and administrative fees 9,669
Other accrued liabilities 25,802
Total Liabilities 1,128,843
=============================================================================
Net Assets 306,619,497
=============================================================================
Net Assets:
=============================================================================
Capital 306,619,497
Accumulated undistributed (distributions in excess of)
net investment income ---
Accumulated undistributed net realized gain (loss)
from investments ---
Net Assets $306,619,497
=============================================================================
Capital Stock Outstanding 306,619,497
Net Asset Value, Offering and Redemption Price Per Share $1.00
- -----------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (Unaudited)
- ----------------------------------------------------------------------------
Net Investment Income from Corresponding Portfolio:
============================================================================
Interest $8,917,401
Expenses (294,578)
Total Net Investment Income from Corresponding Portfolio 8,622,823
============================================================================
Fund Expenses:
============================================================================
Administrative fee 69,594
Transfer agent fees 96,107
Audit fees 3,302
Legal fees 1,113
Printing 2,890
Amortization of organizational costs 1,584
Distribution plan 49,181
Postage 98
Registration and filing fees 17,291
Insurance 6,161
Other expenses 1,350
Total Expenses 248,671
============================================================================
Expenses reimbursed by investment adviser (145,009)
Net Expenses 103,662
============================================================================
NET INVESTMENT INCOME 8,519,161
============================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,519,161
- ----------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Six months
ended year ended
6/30/97 12/31/96
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
================================================================================
OPERATIONS:
================================================================================
Net investment income $8,519,161 $10,844,857
Net increase in net assets resulting from
operations 8,519,161 10,844,857
================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (8,519,161) (10,844,857)
Net decrease in net assets resulting
from dividends and distributions (8,519,161) (10,844,857)
================================================================================
CAPITAL TRANSACTIONS:
Issued 1,582,735,840 1,024,281,687
Reinvested 1,718,814 4,112,320
Redeemed (1,509,977,535) (909,466,834)
Net increase (decrease) in net assets
resulting from capital share transactions 74,477,119 118,937,173
TOTAL INCREASE (DECREASE) IN NET ASSETS 74,477,119 118,937,173
================================================================================
NET ASSETS - Beginning of period 232,142,378 113,205,205
NET ASSETS - End of period $306,619,497 $232,142,378
================================================================================
SHARE TRANSACTIONS:
Issued 1,582,735,840 1,024,281,687
Reinvested 1,718,814 4,122,320
Redeemed (1,509,977,535) (909,466,834)
Change in shares 74,477,119 118,937,173
- --------------------------------------------------------------------------------
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Six Months Ended Years Ended June 15, 1994*
June 30, 1997 December 31, to
(unaudited) 1996 1995 Dec. 31, 1994
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.000 $1.000 $1.000 $1.000
Income from Investment Operations
Net Investment Income 0.026 0.053 0.059 0.026
Total From Investment Operations 0.026 0.053 0.059 0.026
Less Distributions
Dividends (from net investment income) (0.026) (0.053) (0.059) (0.026)
Total Distributions (0.026) (0.053) (0.059) (0.026)
Net Asset Value, End of Period $1.000 $1.000 $1.000 $1.000
Total Return 2.68%(1) 5.43% 6.01% 4.80%(2)
Ratios/Supplementary Data
======================================================================================================
Net Assets, End of Period ($000) $306,619 $232,142 $113,205 $59,494
Ratio of Expenses to Average Net Assets 0.25%(2) 0.25% 0.25% 0.25%(2)
Ratio of Net Investment Income to
Average Net Assets 5.34%(2) 5.30% 5.87% 4.51%(2)
Ratio of Expenses to Average Net Assets,
before waiver of fees 0.47%(3) 0.46%(3) 0.55%(3) 0.46%(3)
Ratio of Net Investment Income to Average
Net Assets, before waiver of fees 5.12%(3) 5.09%(3) 5.57%(3) 4.25%(3)
<FN>
1 Not Annualized
2 Annualized
3 Annualized ratio includes fees waived in corresponding portfolio
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements
<PAGE>
THE INSTITUTIONAL FUND June 30, 1997
Notes to Financial Statements
(Unaudited)
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, 1997 The Institutional
Fund held approximately 69% 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 .05% 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, 1997, an indefinite number of shares of $0.10 par value stock were
authorized in the Fund and capital amounted to $306,619,497 in The Institutional
Fund. Transactions in capital stock are included elsewhere in this report.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (Unaudited)
MONEY
MARKET
PORTFOLIO
- ---------------------------------------------------------------------------
Assets:
Investments at market value* $400,249,217
Repurchase agreements* 40,434,000
Cash 219
Interest receivable 3,338,160
Prepaid/Other assets 5,967
Unamortized organization costs 76
Total Assets 444,027,639
===========================================================================
Liabilites:
Payable to investment adviser 53,028
Accrued fund accounting fees 6,998
Other accrued liabilities 10,146
Total Liabilities 70,172
===========================================================================
Net Assets 443,957,467
===========================================================================
Net Assets:
===========================================================================
Capital 443,957,467
Net Assets $443,957,467
===========================================================================
*Securities at cost 440,683,217
- ---------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (Unaudited)
MONEY
MARKET
PORTFOLIO
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME
===============================================================================
Interest $12,670,633
Total Investment Income 12,670,633
===============================================================================
Expenses:
===============================================================================
Investment advisory fees 638,575
Audit fees 5,767
Custodian fees 15,478
Trustees fees and expenses 2,783
Legal fees 1,302
Amortization of organization cost 2,469
Accounting fees 41,517
Insurance 1,700
Other expenses 6,987
Total Expenses 716,578
===============================================================================
Investment advisory fees waived (296,983)
Total Net Expenses 419,595
===============================================================================
NET INVESTMENT INCOME 12,251,038
===============================================================================
NET GAIN (LOSS) ON INVESTMENTS ---
===============================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $12,251,038
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (Unaudited)
and the YEAR ENDED DECEMBER 31, 1996
MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
Six months
ended year ended
6/30/97 12/31/96
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
================================================================================
OPERATIONS:
================================================================================
Net investment income $12,251,038 $19,455,266
Net realized gain (loss) from investments --- ---
Net increase in net assets resulting from
operations 12,251,038 19,455,266
TRANSACTIONS OF INVESTORS' BENEFICIAL INTERESTS:
================================================================================
Contributions 1,783,146,092 1,414,075,891
Withdrawals (1,704,369,888) (1,335,249,306
Net increase (decrease) in net assets resulting from
transactions of investors' beneficial interests 78,776,204 78,826,585
TOTAL INCREASE (DECREASE) IN NET ASSETS 91,027,242 98,281,851
================================================================================
NET ASSETS - Beginning of period 352,930,225 254,648,374
NET ASSETS - End of period $443,957,467 $352,930,225
- --------------------------------------------------------------------------------
<TABLE>
MONEY MARKET PORTFOLIO
<CAPTION>
Six months ended Period
June 30, 1997 Year Ended December 31, May 1, 1992 to
(unaudited) 1996 1995 1994 1993 December 31, 1992
<S> <C> <C> <C> <C> <C> <C>
Net Assets, End of Period ($000) $443,957 $352,930 $256,126 $224,523 $200,148 $244,272
Ratio of Expenses to Average Net Assets 0.19%(1) 0.19% 0.21% 0.19% 0.19% 0.18%(1)
Ratio of Net Investment Income to
Average Net Assets 5.40%(1) 5.34% 5.87% 4.28% 3.09% 3.60%(1)
Ratio of Expenses to Average Net Assets,
before waiver of fees 0.32%(1) 0.33% 0.37% 0.39% 0.40% 0.40%(1)
Ratio of Net Investment Income to Average
Net Assets, before waiver of fees 5.27%(1) 5.20% 5.70% 4.08% 2.88% 3.38%(1)
Portfolio Turnover Rate N/A N/A N/A N/A N/A N/A
<FN>
1 Annualized
*Date of commencement of operations
</FN>
</TABLE>
See accompanying notes to financial statements
<PAGE>
MONEY MARKET PORTFOLIO June 30, 1997
Notes to Financial Statements
(Unaudited)
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 cost 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 months ended June 30, 1997, 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>
THE INSTITUTIONAL FUND
P.O. BOX 7177
Dublin, Ohio 43017
