MEEDER ADVISOR FUNDS
INTERNATIONAL EQUITY FUND
2000 SEMI-ANNUAL REPORT
June 30, 2000
INTERNATIONAL EQUITY FUND
2000 SEMI-ANNUAL REPORT
JUNE 30, 2000
MEEDER ADVISOR FUNDS
P.O. Box 7177
Dublin OH 43017
(800)494-3539
Distributed by
Adviser Dealer Services, Inc.
<PAGE>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. All performance figures
represents total returns and average annual total returns for the periods ended
6/30/00. Investment performance represents total return and assumes reinvestment
of all dividend and capital gain distributions. The investment value and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost. The
Investment Advisor waived a portion of its management fees and/or reimbursed
expenses in order to reduce the operating expenses of The International Equity
Fund during each period shown above. To obtain a prospectus containing more
complete information about The International Equity Fund, including other fees
and expenses that apply to a continued investment in the Fund, you may call
Meeder Advisor Funds at (800)494-3539 or write P.O. Box 7177, Dublin OH 43017.
Please read the prospectus carefully before investing. Meeder ADvisor Funds are
distributed by Adviser Dealer Services, Inc., which is affiliated with Meeder
Advisor Funds.
<PAGE>
INTERNATIONAL EQUITY FUND
SEMI-ANNUAL MARKET PERSPECTIVE
The International Equity Fund outperformed the average foreign stock for
year-to-date total return. For the six months ended June 30, 2000, the Fund
declined -2.88% before sales charges, compared with the -4.04% total return for
the average foreign stock fund for the same period, according to Morningstar.
The MSCI EAFE Index* declined -1.73% over the same time period.
World stock markets were volatile during the first half of 2000. At the
start of the year, world equity markets fell back as investors took profits
following a strong finish to 1999. The "new economy" sectors of technology,
media, and telecommunications continued to lead through most of the 1st Quarter.
The Fund was overweighted in these sectors, which aided overall performance
throughout the first three months of the year, until a sharp correction in
mid-March led us to reduce our exposure. Regionally, most of the Fund's 1st
Quarter returns came from Europe and the U.K., although good stock selection in
Asia helped the Fund as well.
As volatility rocked global stock markets to start the 2nd Quarter, we took
a less aggressive position with our regional and sector weightings. We
maintained our country allocation weightings close to that of the index,
adhering to a low risk strategy. Although we reduced our exposure to the "new
economy" sectors , we remained overweighted in technology and telecommunications
stocks until May, when we established a neutral position. When these issues fell
to low levels, we bought back into these sectors, hoping to take advantage of
any potential growth that may emerge following the brief bear market.
Looking ahead, we expect Europe and Asia to be bolstered by continued
economic recovery. Investors everywhere remain skittish due to uncertainty over
the sustainability of U.S. economic growth and the direction of U.S. interest
rates. Although short-term volatility may continue, stocks could rally if the
U.S. Federal Reserve manages to achieve a "soft landing" for the U.S. economy.
* The MSCI Eafe Index is a widely recongnized unmanaged index of over 1000 stock
prices from companies in Europe, Australasia, and the Far East. This index
incurs no sales charges, expenses, or fees. Past performance of an index is no
guarantee of future results. It is not possible to invest directly in an index.
IN EXCHANGE FOR GREATER POTENTIAL REWARDS, FOREIGN INVESTMENTS INVOLVE
GREATER RISK THAN U.S. INVESTMENTS. THESE RISKS INCLUDE POLITICAL AND ECONOMIC
UNCERTAINTIES OF FOREIGN COUNTRIES AND CURRENCY FLUCTUATIONS. THESE RISKS MAY BE
MAGNIFIED IN COUNTRIES WITH EMERGING MARKETS, SINCE THOSE COUNTRIES MAY HAVE
RELATIVELY UNSTABLE GOVERNMENTS AND LESS ESTABLISHED ECONOMIES.
[PHOTO] Charles Brand, Portfolio Manager
PERFORMANCE PERSPECTIVE
PERIOD & AVERAGE ANNUAL TOTAL
RETURNS as of June 30, 2000
before deduction of sales charges
---------------------------------
Year to Date........................ -2.88%
1 Year.............................. 23.01%
Life of Fund(1)..................... 14.73%
net of sales charges(2)
-----------------------
Year to Date........................ -8.47%
1 Year.............................. 15.91%
Life of Fund(1)..................... 12.36%
1 Inception Date 9/2/97
2 Reflects deduction of 5.75% maximum sales charges.
REGIONAL HOLDINGS as of June 30, 2000*
[GRAPH] The following information was presented as a pie chart:
1) Europe (ex-U.K.) 50%
2) Japan 26%
3) United Kingdom 18%
4) Pacific Rim (ex-Japan) 3%
5) Australia/New Zealand 3%
* Regional holdings are subject to change.
<PAGE>
International Equity Fund
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
INDUSTRIES/CLASSIFICATIONS SHARES OR VALUE
FACE AMOUNT
COMMON STOCKS - 100.0%
ADVERTISING - 0.4%
<S> <C> <C>
Asatsu - DK, Inc. 500 $ 20,531
Cordiant Communications Group 2,100 11,861
WPP Group PLC 4,020 58,822
91,214
AEROSPACE/DEFENSE - 0.2%
BAE Systems PLC 9,118 56,962
AIR TRANSPORT - 0.2%
Cathay Pacific Airways 8,000 14,829
Singapore Airlines Ltd. 2,000 19,797
34,626
APPAREL - 0.2%
Alexon Group PLC # 3,181 4,437
Espirit Holdings Ltd. 8,000 8,312
Onward Kashiyama Co., Ltd. 2,000 27,186
39,935
AUTO & TRUCK - 3.0%
Autobacs Seven 300 9,997
Bayerische Motoren Werke AG 3,600 108,802
GKN Ord. 3,094 39,549
Honda Motor Co., Ltd. 2,000 68,155
Nissan Motor Co., Ltd. # 7,000 41,299
Toyota Motor Corp. 9,000 410,346
678,148
AUTOPARTS - 0.3%
Denso Corp. 3,000 73,064
BANKING - 15.0%
Abbey National PLC 2,519 30,175
Allied Irish Banks PLC 7,632 68,179
Asahi Bank Ltd. 5,000 21,051
Banca Nazionale del Lavoro # 31,440 110,607
Banco Bilbao Vizcaya Argentaria 8,000 117,459
Banco Santander Central Hispano SA 11,500 121,153
Bank of East Asia 2,000 4,669
Bank of Fukuoka Ltd. 4,000 27,262
Bank of Tokyo-Mitsubishi Ltd. 10,000 120,923
Bank of Yokohama Ltd. 5,000 22,419
Banque Nationale de Paris 2,250 216,231
<PAGE>
Barclays PLC 3,783 94,245
Bayerische Hypo-und Vereinsbank AG 1,400 91,338
Chiba Bank Ltd. 6,000 23,732
Christiania Bank Og Kreditkasse 19,100 102,520
Commerzbank AG 2,550 90,683
Commonwealth Bank of Australia 1,990 32,932
Credit Lyonnais 1,600 75,967
Credit Suisse Group 500 99,330
Dai-Ichi Kangyo Bank Ltd. 6,000 45,594
Daiwa Bank Ltd. 6,000 15,575
DBS Group Holdings Ltd. 2,000 25,702
Deutsche Bank AG 1,720 141,683
Dexia 850 125,205
ForeningsSparbankens - AB 7,500 93,206
Halifax PLC 3,230 31,051
Hang Seng Bank Ltd. 4,100 38,920
HSBC Holdings PLC 21,077 241,407
Industrial Bank of Japan Ltd. 6,000 45,537
ING Groep NV 4,200 283,503
Macquarie Bank Ltd. 620 9,664
Mitsubishi Trust 4,000 31,076
National Australia Bank Ltd. 3,190 53,188
Overseas-Chinese Banking Corp., Ltd. 3,000 20,666
Royal Bank of Scotland Group PLC 5,063 84,908
San Paolo - IMI SpA # 8,100 143,562
Sanwa Bank Ltd. 4,000 31,944
Softbank Corp. 700 95,153
Sumitomo Bank Ltd. 9,000 110,445
Sumitomo Trust 4,000 28,508
Tokai Bank Ltd. 5,000 24,685
Unicredito Italiano Spa # 25,000 119,413
United Overseas Bank Ltd. 2,000 13,083
Westpac Banking Corp. 3,940 28,374
3,352,927
BEVERAGE -- ALCOHOLIC - 0.5%
Bass PLC 3,244 36,547
Diageo PLC 8,720 78,407
114,954
BREWERY - 0.2%
Asahi Breweries Ltd. 2,000 23,958
Foster's Brewing Group Ltd. 7,950 22,331
46,289
<PAGE>
BROADCASTING -- CABLE TV - 0.7%
British Sky Broadcasting Group PLC # 3,010 58,968
Reuters Holdings PLC 3,368 57,555
Tokyo Broadcasting System, Inc. 1,000 43,234
159,757
BROADCASTING & PUBLISHING - 0.9%
Austar United Communications Ltd. # 1,440 4,857
Fox Kids Europe # 4,650 73,150
News Corporation Ltd. 8,230 113,129
191,136
BUILDING & CONSTRUCTION - 1.1%
AMEC PLC 3,000 8,529
China Unicom # 2,000 4,246
CRH PLC 3,400 61,265
Obayashi Corp. 15,000 66,409
RMC Group PLC 1,684 21,960
Sekisui House 4,000 37,042
Vinci 1,350 55,988
255,439
BUILDING MATERIALS - 0.5%
LaFarge 1,300 100,889
CHEMICALS - 1.5%
Nippon Sanso Corp. 16,000 55,732
SGL Carbon AG # 1,600 106,323
Shin-Etsu Chemical Co., Ltd. 2,000 101,572
Sumitomo Bakelite 6,000 79,124
342,751
CHEMICALS -- DIVERSIFIED - 1.1%
Aventis SA 2,700 196,796
BOC Group PLC 2,310 33,275
Tosoh 8,000 40,402
270,473
COMMERCIAL SERVICES -0.2%
Benesse Corp. 600 41,629
COMPUTERS & PERIPHERALS - 1.8%
Creative Technology Ltd. 100 535
Fujitsu Ltd. 5,000 173,219
Fujitsu Support & Service Inc. 200 19,823
Konami Co. Ltd. 300 18,974
<PAGE>
Logica PLC 1,230 29,169
Misys PLC 2,982 25,231
NEC Corp. 3,000 94,303
Psion PLC 2,000 19,378
The Sage Group PLC # 4,020 32,611
413,243
CONTAINERS -- PAPER & PLASTIC - 0.1%
Bunzl PLC 6,100 32,743
COSMETICS - 0.4%
Kao Corp. 3,000 91,754
DISTRIBUTION WHOLESALER - 0.4%
Li & Fung Ltd. 2,000 10,006
Marubeni Corp. # 11,000 37,901
Mitsui & Co. 6,000 45,877
93,784
DIVERSIFIED - 2.9%
BBA Group PLC 4,000 26,262
Brambles Industries Ltd. 640 19,636
Broken Hill Proprietary Co., Ltd. 5,010 59,136
Citic Pacific Ltd. 2,000 10,468
Granada Group PLC 6,534 65,390
Hutchison Whampoa Ltd. 8,800 110,627
Lagardere SCA 1,100 83,899
Mitsubishi Corp. 5,000 45,264
PT Multimedia Servicos # 1,000 49,577
RioTinto Ltd. 1,280 21,128
Swire Pacific Ltd. 3,000 17,548
Vivendi 1,480 130,450
639,385
DRUG - 2.1%
Elan Corp. PLC # 1,000 48,063
Roche Holdings AG 19 184,713
Sankyo Co., Ltd. 2,000 45,216
Smithkline Beecham PLC 13,842 181,552
459,544
ELECTRIC PRODUCTION -- MISCELLANEOUS - 2.8%
Chubu Electric Power Co., Inc. 1,800 32,029
CLP Holdings Ltd. 5,000 23,283
Hitachi Ltd. 10,000 144,428
<PAGE>
Mitsubishi Electric Corp. 2,000 21,674
National Grid Group PLC 3,400 26,860
Rohm Corp. Ltd. 300 87,790
Sanyo Electric Co., Ltd. 9,000 81,050
Scottish Power PLC 2,783 23,631
Sharp Corp. 3,000 53,098
Tokyo Electric Power Co. 1,400 34,162
Union Electric Fenosa # 6,000 108,401
636,406
ELECTRONIC COMPONENT -- MISCELLANEOUS - 6.2%
Advantest Corp. 100 22325
Arm Holdings PLC # 1,100 11,809
Chartered Semiconductor Manufacturing Lt 2,000 17,482
Epcos AG 800 78,827
Fanuc Ltd. 400 40,742
Johnson Electric Holdings Ltd. 2,000 18,921
Kyocera Corp. 400 67,928
Lernout & Hauspie Speech Products NV # 2,000 85,500
Mabuchi Motor Co., Ltd. 400 51,730
Matsushita Electric Industrial Co., Ltd. 6,000 155,756
Minebea Co., Ltd. 2,000 25,110
Murata Manufacturing Co., Ltd. 1,000 143,673
Natsteel Electonics 1,000 3,068
Perlos Oyj 1,500 47,336
Sony Corp. 2,500 233,634
STMicroelectronics NV 1,100 69,217
Sumitomo Electric Industries 6,000 102,969
Terumo Corp. 1,000 33,889
Tokyo Electron Ltd. 1,000 137,065
Toshiba Corp. 3,000 33,898
Venture Manufacturing Ltd. 1,000 10,188
1,391,067
ENGINEERING RESEARCH & DEVELOPMENT - 0.4%
MG Technologies AG 5,000 69,122
Sembcorp Industries Ltd. 3,000 3,265
Singapore Technologies Engineering Ltd. 5,000 7,351
79,738
ENTERTAINMENT/MEDIA - 0.7%
Grupo Prisa SA # 3,700 85,720
Pearson PLC 2,146 68,334
<PAGE>
154,054
FINANCE - 1.7%
Acom Co. Ltd. 500 42,101
Lend Lease Corp., Ltd. 1,150 14,645
Lloyds TSB Group PLC 12,852 121,602
Nomura Securities Co., Ltd. 5,000 122,481
Orix Corp. 320 47,274
348,103
FINANCIAL SERVICES - 0.3%
Daiwa Securities Group, Inc. 4,000 52,863
Legal & General Group PLC 16,724 25,380
78,243
FOOD -- DIVERSIFIED - 3.7%
Ajinomoto Co. Inc. 4,000 51,352
Ariake Japan Co. Ltd. 500 31,529
Danone 600 79,514
Koninklijke Ahold NV 5,500 161,663
Koninklijke Numico NV 2,050 97,137
Nestle SA 125 249,855
Royal Canin SA 1,100 105,608
Tesco PLC 8,517 26,539
Woolworth's Ltd. 6520 24023
827,220
HOTEL/GAMING - 0.8%
Accor SA 3,800 155,532
Arisocrat Leisure 4,240 14,317
169,849
HOUSEHOLD PRODUCTS - 1.0%
Asahi Glass Co., Ltd. 5,000 55,931
Hunter Douglas NV 2,818 76,167
Societe Europeenne des Satellites 500 83,422
215,520
INSURANCE -- MULTILINE - 0.8%
Allied Zurich AG 2,506 121,197
Prudential Corp., PLC 4,525 66,417
187,614
INSURANCE - 4.5%
Axa 1,487 233,921
Allianz AG 695 251,130
Assicurazioni Generali # 4,050 138,620
<PAGE>
Fortis AG 2,500 72,649
Muenchener Rueckversicherungs - Gesellsc 430 136,312
Skandia Forsakrings AB 5,000 132,220
Tokio Marine & Fire Insurance Co. 4,000 46,217
1,011,069
INTERNET -- SOFTWARE - 0.6%
Brokat Infosystems AG # 1,000 78,656
Geo Interactive Media Group PLC # 580 11,081
NetValue # 1,500 25,499
Pacific Century Cyberworks Ltd. # 7,000 13,828
129,064
INVESTMENT COMPANIES - 0.1%
Amvescap PLC 1,600 25,716
MACHINERY - 1.1%
Schneider Electric SA 1,500 104,397
SMC Corp. 400 75,329
Usinor SA 6,000 73,107
252,833
MANUFACTURING - 2.9%
ABB Ltd. 1,350 161,369
E.On AG 3,900 191,119
FKI PLC 4,770 16,997
NTN Corp. 8,000 34,209
Siemens AG 1,600 240,257
643,951
MEDICAL -PRODUCTS - 3.5%
Parkway Holdings Ltd. 1,000 169,242
Glaxo Wellcome PLC 7,617 222,562
Novartis AG 135 213,560
Takeda Chemical Industries 2,000 131,401
Yamanouchi Pharmaceutical Co., Ltd. 1,000 54,656
791,421
MEDICAL - HOSPITAL - 0.0%
Parkway Holdings Ltd. 1,000 2,559
METAL FABRICATING - 0.3%
Assa Abloy AB 3,120 62,675
<PAGE>
MINING - 0.5%
Mitsui Mining & Smelting Co., Ltd. 7,000 53,193
Rio Tinto PLC 3,660 59,936
113,129
OFFICE AUTOMATION & EQUIPMENT - 0.4%
Canon, Inc. 2,000 99,684
OIL & NATURAL GAS - 8.4%
Altadis SA 7,700 115,257
Amp Ltd. 2,420 24,587
BG Group PLC 9,905 64,131
British Petroleum Co., PLC 48,588 467,093
Centrica PLC 18,070 60,416
Hong Kong & China Gas Co., Ltd. 11,680 13,110
LASMO PLC 6,900 14,699
Nippon Mitsubishi Oil Co. 6,000 27,526
Repsol - YPF, SA 9,750 193,814
Royal Dutch Petroleum Co. 6,300 391,018
Shell Transport & Trading Co. 1,618 13,530
Tokyo Gas Co. 25,000 70,326
Total Fina SA 2,748 420,763
1,876,270
PAPER & FOREST PRODUCTS - 0.1%
Nippon Paper Industries Co., Ltd. 3,000 20,503
PHOTOGRAPHIC SUPPLIES -0.2%
Fuji Photo Film 1,000 40,969
PRINTING -- COMMERCIAL - 0.3%
Dai Nippon Printing Co., Ltd. 4,000 70,572
PROTECTION -- SAFETY EQUIPMENT - 0.3%
Secom Co., Ltd. 1,000 73,158
PUBLISHING - 0.9%
John Fairfax Holdings 2,730 7,672
Royal & Sun Alliance 3,477 22,617
Singapore Press Holdings Ltd. 700 10,941
South China Morning Post Holdings Ltd. 9,000 6,985
Trininty Mirror PLC 1000 8946
United News & Media PLC 1460 21031
Verenigde Nederlandse Uitgeversbedrijven 2,400 123,790
201,982
<PAGE>
REAL ESTATE MANAGEMENT & INVESTMENT - 0.7%
Chelsfield PLC 4,348 21,196
Cheung Kong Holdings Ltd. 1,000 11,064
City Developments Ltd. 3,000 11,635
DBS Land Ltd. 1,000 1,297
Mitsubishi Estate Co., Ltd. 4,000 47,123
Sun Hung Kai Properties Ltd. 5,000 35,918
Westfield Holdings Ltd. 2,600 17,844
146,077
RECREATION - 0.1%
TABCORP Holdings Ltd. 2,140 12,278
RETAIL - 1.4%
Isetan Co., Ltd. 3,000 36,815
Matalan PLC 1,390 10,981
New Dixons Group PLC 2,342 9,553
Next PLC 2,200 19,281
Otsuka Kagu Ltd. 200 20,579
Pinault Pritemps Redoute SA 250 55,464
PizzaExpress PLC 1,200 11,463
Ryohin Keikaku Co. Ltd. 100 12,744
Swatch Group AG 110 139668
316,548
RETAIL GROCERY - 0.3%
Ito-Yokado Co., Ltd. 1,000 60,226
RETAIL STORE - 0.2%
Debenhams PLC 1,627 5,341
Kingfisher PLC 4,837 44,116
49,457
SHIP BUILDING - 0.0%
Keppel Corp., Ltd. 2,000 4,330
STEEL -- INTEGRATED - 0.4%
Corus Group PLC 15,900 23,265
Nippon Steel Corp. 30,000 63,152
86,417
TELECOMMUNICATIONS - 4.8%
Cable & Wireless PLC 26,062 57,336
DDI Corp. 1 9,628
Deutsche Telekom AG 1,500 85,034
Nippon Telegraph & Telephone Corp. 29 385,991
<PAGE>
Portugal Telecom SA # 9,000 100,908
Singapore Telecommunications Ltd. 12,000 17,574
Telecom Corporation of New Zealand Ltd. 7,300 25,509
Telecom Italia SpA # 11,000 151,019
Telephonica SA # 8,000 171,612
Versatel Telecom International NV # 1,850 77,607
1,082,218
TELECOMMUNICATION EQUIPMENT - 10.6%
Alcatel Alsthom 2,500 163,747
France Telecom SA 2,350 328,008
Marconi PLC 5,958 77,693
Nokia Oyj 11,400 580,935
Telecom Italia Mobile Spa # 15,000 153,021
Telefonaktiebolaget LM Ericsson 19,600 388,170
Teleste Corp. 3,000 72,935
Vodafone AirTouch PLC 146,235 592,036
2,356,545
TELECOMMUNICATION SERVICES - 2.8%
British Telecommunications PLC 15,174 196,491
China Telecom Ltd. # 2,000 17,638
e.Biscom SpA # 400 61,399
Sonera Group Oyj 2,500 113,812
Telestra Corp., Ltd. 15,780 63,942
Telia AB # 4,630 43,614
United Pan-Europe Communications NV # 5,100 133,179
630,075
TELEVISION - 0.6%
Canal Plus 300 50,340
Tele1 Europe Holding AB # 5,400 66,189
Television Broadcasts Ltd. 1,000 6,671
123,200
TOBACCO - 0.0%
British American Tobacco PLC 3,020 20,194
TOYS - 0.1%
Nintendo Co. 100 17,483
TRAFFIC MANAGEMENT - 0.0%
Trafficmaster PLC # 930 8,320
<PAGE>
TRANSPORTATION - 1.1%
East Japan Railway Co. 11 63,964
National Express Group PLC 1,500 15,057
Neptune Orient LNS # 2,000 1,853
Ocean Group PLC 870 14,379
Peninsular and Oriental Steam Navigation 2,449 21,018
Railtrack Group PLC 2,021 31,456
Stagecoach Holdings PLC 2,700 2,989
Yamato Transport Co., Ltd. 4,000 99,495
250,211
TRAVEL SERVICES - 0.6%
Amadeus Global Travel Distribution SA 11,000 125,325
VENTURE CAPITAL - 0.1%
3I Group 750 15,455
15,455
TOTAL COMMON STOCKS
(Cost $18,875,977 ) 22,388,374
TOTAL INVESTMENTS - 100.0%
(Cost $18,875,977 ) 22,388,374
TRUSTEE DEFERRED COMPENSATION*
Flex-funds Highlands Growth Fund 274 $6,211
Flex-funds Muirfield Fund 482 2,708
Flex-funds Total Return Utilities Fund 109 2,410
Meeder Advisor International Equity Fund 219 3,714
TOTAL TRUSTEE DEFERRED COMPENSATION
(Cost $14,387 ) $15,043
<FN>
* Assets of affiliates to the International Equity Fund held for the benefit
of the Portfolio's Trustees in connection with the Trustee Deferred
Compensation Plan.
</FN>
</TABLE>
Portfolio Composition by Country of Domicile as of 6/30/00:
Australia - 2.41% Netherlands - 6.60%
Belgium - 1.63% New Zealand - 0.11%
Norway - 0.45%
Finland - 3.62% Portugal - 0.67
France - 12.65% Singapore - 0.76%
Germany - 7.89% Spain - 3.27%
Hong Kong - 1.93% Sweden - 3.49%
Ireland - 0.79% Switzerland - 5.07%
Italy - 3.89% United Kingdom - 18.35%
Japan - 26.37% United States - 0.05%
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 2000 (UNAUDITED)
INTERNATIONAL
EQUITY
FUND
Assets
Investments, at value (cost $18,875,977) $22,388,374
Trustee Deferred Compensation Plan,
at value (cost $14,387) 15,043
Cash 1,275,323
Receivable for securities sold 508,053
Receivable for capital stock issued 237
Dividends, interest and tax reclaims
receivable, at value 65,413
Unamortized organization costs 12,616
Other assets 8,057
Total Assets 24,273,116
Liabilities
Payable to investment advisor 21,154
Payable for securities purchased 176,379
Payable for capital stock redeemed 2,861
Dealer commissions payable 6,178
Trustee Deferred Compensation Plan, at value 15,043
Accrued custodian fees 56,343
Accrued distribution plan and shareholder
service fees 3,432
Accrued transfer agent, fund accounting and
administrative fees 5,415
Other accrued liabilities 10,912
Total Liabilities 297,717
Total Net Assets 23,975,399
Net Assets
Capital 18,560,948
Accumulated undistributed (distributions in
excess of) net investments (27,617)
Accumulated undistributed net realized gain
from investments 1,929,671
Net unrealized appreciation of investments 3,512,397
Total Net Assets $23,975,399
Capital Stock Outstanding 1,421,382
(indefinite number of shares authorized, $0.10 par value)
Net Asset Value - Redemption Price Per Share $16.87
Maximum Sales Charge 5.75%
Maximum Offering Price Per Share $17.90
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
INTERNATIONAL
EQUITY
FUND
Investment Income
Interest $22,480
Dividends 206,874
Foreign taxes withheld (21,494)
Total Investment Income 207,860
Expenses
Investment advisor 120,280
Fund accounting 15,123
Transfer agent 12,836
Administrative 6,014
Custodian 37,274
Distribution plan and shareholder service 20,096
Audit 7,058
Trustee 4,904
Registration and filing 3,754
Amortization of organizational costs 2,937
Printing 1,692
Legal 1,143
Postage 872
Insurance 114
Other 1,645
Total Expenses 235,742
Expenses reimbursed by investment advisor (265)
Net Expenses 235,477
Net Investment Income (Loss) (27,617)
Net Realized and Unrealized Gain (Loss) from Investments
Net realized gains from investments 1,482,757
and foreign currency transactions
Net change in unrealized appreciation (2,155,351)
(depreciation) of investments
Net Gain (Loss) from Investments (672,594)
Net Increase (Decrease) in Net Assets Resulting from Operations ($700,211)
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
Six months
ended Year
June 30, 2000 ended
(unaudited) December 31, 1999
Increase (Decrease) in Net Assets
Operations
<S> <C> <C>
Net investment income (loss) ($27,617) ($54,164)
Net realized gain from investments and futures contracts 1,482,757 2,041,862
Net change in unrealized appreciation (depreciation) of investments (2,155,351) 3,448,137
Net increase (decrease) in net assets resulting from operations (700,211) 5,435,835
Dividends and Distributions to Shareholders from
Net realized gain from investments and futures contracts 0 (1,691,362)
Net decrease in net assets resulting from dividends and distributions 0 (1,691,362)
Capital Transactions
Issued 2,188,935 1,527,830
Reinvested 0 1,622,117
Redeemed (987,451) (1,693,662)
Net increase in net assets resulting from capital transactions 1,201,484 1,456,285
Total Increase in Net Assets 501,273 5,200,758
Net Assets - Beginning of Period 23,474,126 18,273,368
Net Assets - End of Period $23,975,399 $23,474,126
Share Transactions
Issued 127,009 99,602
Reinvested 0 99,846
Redeemed (56,838) (111,391)
Change in shares 70,171 88,057
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Six months Year Year Period from
ended ended ended 9/2/97* to
June 30, 2000 12/31/99 12/31/98 12/31/97
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.37 $14.47 $12.18 $12.50
Income from Investment Operations
Net investment income (loss) (0.02) (0.04) (0.02) (0.02)
Net gains (losses) on securities (0.48) 4.31 2.43 (0.30)
(both realized and unrealized)
Total from Investment Operations (0.50) 4.27 2.41 (0.32)
Less Dividends and Distributions
In excess of net investment income 0.00 0.00 (0.04) 0.00
From net capital gains 0.00 (1.37) (0.08) 0.00
Total Dividends and Distributions 0.00 (1.37) (0.12) 0.00
Net Asset Value, End of Period $16.87 $17.37 $14.47 $12.18
Total Return (excludes sales and redemption charges) -2.88%(2) 30.07% 19.78% -2.56%(2)
Ratios/Supplemental Data
Net assets, end of period ($000) $23,975 $23,474 $18,273 $12,190
Ratio of expenses to average net assets 1.95%(1) 2.00% 2.00% 2.00%(1)
Ratio of net investment income (loss) to average net assets -0.23%(1) -0.28% -0.18% -0.43%(1)
Ratio of expenses to average net assets 1.95%(1) 2.37% 2.17% 2.68%(1)
before reimbursement of fees
Ratio of net investment income (loss) to -0.23%(1) -0.65% -0.35% -1.11%(1)
average net assets before reimbursement of fees
Portfolio turnover rate 35.77%(2) 72.52% 86.13% 12.71%
<FN>
(1) Annualized.
(2) Not annualized.
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
INTERNATIONAL EQUITY FUND SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
1. ORGANIZATION
The Meeder Advisor Funds Trust (f/k/a the Flex-Partners Trust) (the "Trust") was
organized in 1992 and is registered under the Investment Company Act of 1940, as
amended (the "Act"), as a diversified, open-end management investment company.
The Trust offers five series, and it is presently comprised of five separate
funds. Only the financial statements of The International Equity Fund (the
"Fund") are in this report.
The investment objective of the Fund is to seek long-term growth from investing
primarily in equity securities of foreign issuers.
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
Securities owned by the Fund are valued at 3:00 pm Eastern Time based on the
last sales price, or, lacking any sales, at the closing bid prices. The Fund
obtains prices from independent pricing services which use valuation techniques
approved by the Board of Trustees. If prices cannot be obtained through
independent pricing services, methods of valuation are used that have been
approved by the Board of Trustees.
REPURCHASE AGREEMENTS
The Fund may engage in repurchase agreement transactions whereby the Fund takes
possession of an underlying debt instrument subject to an obligation of the
seller to repurchase the instrument from the Fund and an obligation of the Fund
to resell the instrument at an agreed upon price and term. At all times, the
Fund maintains the value of collateral, including accrued interest, at least
100% of the amount of the repurchase agreement, plus accrued interest. If the
seller defaults or the fair value of the collateral declines, realization of the
collateral by the Fund may be delayed or limited.
DEFERRED TRUSTEE COMPENSATION
Under a Deferred Compensation Plan (the "Plan") non-interested Trustees may
elect to defer receipt of a portion of their annual compensation. Under the
Plan, deferred amounts are invested in the shares of the Flex-funds and Meeder
Advisor Funds. Deferred amounts remain in the funds until distributed in
accordance with the Plan.
FOREIGN CURRENCY TRANSLATION
Accounting records of the Fund are maintained in U.S. dollars. The value of
securities, other assets and liabilities of the Fund denominated in foreign
currency are translated into U.S. dollars at the current exchange rate.
Purchases and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the exchange rate on the dates of such
transactions. The Fund does not isolate that portion of the results of
operations resulting from changes in foreign exchange rates from those resulting
from changes in market prices of securities held.
FORWARD CURRENCY CONTRACTS
The Fund may enter into forward foreign currency exchange contracts ("forwards")
for purposes of hedging against either specific transactions or portfolio
positions. Forwards are agreements between two parties to exchange currencies at
a set price on a future date. The market value of forwards fluctuates with
changes in currency exchange rates. The forward is marked-to-market daily, and
the change in market value is recorded by the Fund as unrealized appreciation or
depreciation. When the forward is offset by entry into a closing transaction or
extinguished by delivery of the currency, the Fund records a realized gain or
loss equal to the fluctuation in value during the period the forward was open.
Risks may arise upon entering forwards from the potential inability of
counterparties to meet the terms of the forwards or from unanticipated
fluctuations in the value of the foreign currency relative to the U.S. dollar.
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
substantially all of its investment company taxable income and net capital gains
to its shareholders. Therefore, no Federal income tax provision is required.
<PAGE>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders are recorded on the ex-dividend date. The Fund
declares dividends from net investment income and distributes net capital gains,
if any, on an annual basis.
Distributions from net investment income and from net capital gains are
determined in accordance with Federal income tax regulations which may differ
from generally accepted accounting principles. These differences are primarily
due to deferrals of certain losses, expiring capital loss carryforwards, and
differing treatment of gains and losses realized in transactions denominated in
foreign currency. Accordingly, timing differences relating to shareholder
distributions are reflected in the components of net assets and permanent book
and tax differences relating to shareholder distributions have been reclassified
to capital.
ORGANIZATIONAL COSTS
The costs related to the organization of the Fund have been deferred and are
being amortized on a straight-line basis over a five-year period.
EXPENSES
The Fund accrues its own expenses. Expenses incurred by the Trust that do not
specifically relate to an individual fund of the Trust are allocated to the Fund
based on its relative net assets or other appropriate basis.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management (f/k/a R. Meeder & Associates, Inc.)("MAM"), a
wholly-owned subsidiary of Muirfield Investors, Inc. ("MII"), provides the Fund
with investment management, research, statistical and advisory services. For
such services, the Fund pays monthly fees at the annual rate of 1.00% of the
average daily net asset value of the Fund. Under an Investment Subadvisory
Agreement with MAM, CGU Fund Management serves as subadvisor of the Fund. As
subadvisor, CGU Fund Management is paid 1.00% of the 1.00% of average daily net
assets up to $10 million, 0.30% of the 1.00% of average daily net assets
exceeding $10 million up to $20 million, and 0.65% of the 1.00% of average daily
net assets exceeding $20 million.
Mutual Funds Service Co. ("MFSCo"), a wholly-owned subsidiary of MII, serves as
stock transfer, dividend disbursing and shareholder services agent for the Fund.
In compensation for such services, the Fund pays MFSCo an annual fee equal to
the greater of $15 per active shareholder account or 0.10% of the Fund's average
daily net assets. MFSCo is entitled to receive an annual minimum fee of $4,000
from the Fund.
MFSCo provides the Trust with certain administrative services. In compensation
for such services, the Fund pays MFSCo an annual fee equal to 0.05% of the
Fund's average daily net assets.
MAM has voluntarily agreed to reimburse the Fund for the amount by which annual
expenses (excluding interest, taxes, brokerage fees, and extraordinary expenses)
exceed certain limitations. Such reimbursement is limited to the total of fees
charged to the Fund by MAM and MFSCo. The Fund currently has a 2.00% annual
expense limitation as a percentage of average daily net assets.
Certain officers and trustees of the Fund are also officers or directors of MII,
MAM and MFSCo.
Pursuant to Rule 12b-1 of the Act, the Fund has adopted a Distribution Plan with
Adviser Dealer Services (the "Distributor"). Under the provisions of the
Distribution Plan, the Fund pays the Distributor an annual fee, at a maximum
rate of 0.25% of average daily net assets to aid in the distribution of Fund
shares. Additionally, the Fund has adopted a Service Plan with the Distributor.
Under the provisions of the Service Plan, the Fund pays the Distributor an
annual fee, at a maximum rate of 0.25% of average daily net assets to reimburse
securities dealers for personal services or maintenance of shareholder accounts.
4. SECURITIES TRANSACTIONS
For the six months ended June 30, 2000, the cost of purchases and proceeds from
sales or maturities of long-term investments for the Fund were $8,176,593 and
$8,075,494, respectively. The cost of investments for Federal income tax
purposes and for financial reporting purposes is substantially the same.
<PAGE>
MEEDER ADVISOR FUNDS
P.O. Box 7177
Dublin OH 43017
(800)494-3539
Distributed by
Adviser Dealer Services, Inc.
