MEEDER ADVISOR FUNDS
THE INSTITUTIONAL FUND
2000 SEMI-ANNUAL REPORT
June 30, 2000
MEEDER ADVISOR FUNDS
6000 Memorial Drive, P.O. Box 7177 [PHOTO] Cityscape
Dublin, Ohio 43017
1-800-494-3539
1-614-766-7000
Fax 1-614-766-6809
<PAGE>
THE INSTITUTIONAL FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
SEMI-ANNUAL MARKET COMMENTARY
The big news in the first quarter was the 0.50% cumulative increase in the
Fed Funds rate by the Federal Reserve Board, spread out over two 0.25% hikes.
Rapid economic growth and a surging technology sector led Alan Greenspan & Co.
to a bias towards tightening short-term interest rates. In anticipation, the
Fund shortened its average maturity from 60 to 45 days and increased its
exposure to floating rate instruments. Quality was also a central issue during
the quarter, as investors fled to the highest quality issues on occasional fears
of a sharp stock market decline.
The increase in the Fund's yields in the second quarter is the result of
the Federal Reserve Board's action increasing short-term interest rates and
increased demand for funds from businesses and consumers. On May 31, one-year
interest rates peaked at 7.50% and settled back down to 7.11% by June 30. Since
the one-year rate is very sensitive to demands for borrowing, its decline
prompted us to extend the average maturity during the month of June to 72 days
by the 15th. At quarter end, the average Fund's maturity was 68 days.
The Federal Reserve left short-term rates unchanged at their last meeting
in late June. The decision was undoubtedly based upon recent indications of a
slowing economy. The next meetings are scheduled for August and October while
the presidential campaigns are in full swing. If the Federal Reserve takes any
action in the next six months, it will most likely occur in August so the Fed
doesn't appear to have any political motivation for hiking rates. No matter what
the Fed does at its next two meetings, it is apparent that we are closer to the
end than the beginning of this cycle of rising interest rates.
[PHOTO] Philip A. Voelker, Portfolio Manager
PERFORMANCE PERSPECTIVE
Period & Average Annual Total
Returns as of June 30, 2000
-------------------------------------------
Year to Date...................... 3.02%
1 Year............................ 5.76%
3 Years........................... 5.50%
5 Years........................... 5.52%
Life of Fund*..................... 5.51%
* Inception Date 6/15/94
Current & Effective Yields
as of June 30, 2000
-------------------------------------------
7-day Simple Yield................. 6.41%
7-day Compound Yield............... 6.60%
PORTFOLIO HOLDINGS as of June 30, 2000*
[GRAPH] The following information was presented as a pie chart:
1) Commercial Paper 64%
2) Variable Rate Notes 17%
3) Repurchase Agreements 15%
4) Certificates of Deposit 4%
* Portfolio holdings are subject to change
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. All performance figures
represent total returns and average annual total returns for the period 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 Adviser reimbursed expenses in order to reduce the operating expenses
of The Institutional Fund during each period shown. An investment in The
Institutional Fund is neither insured nor guaranteed by the Federal Deposit
Insurance Corporation or any other governmental agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund. Yield quotations more closely reflect the
current earnings of The Institutional Fund than do total return quotations. To
obtain a prospectus containing more complete information about The Institutional
Fund, including other fees and expenses that apply to a continued investment in
the Fund, you may call (800)494-3539 or write P.O. Box 7177, Dublin OH 43017.
Please read the prospectus carefully before investing.
<PAGE>
Money Market Portfolio
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
COUPON/YIELD MATURITY FACE AMOUNT AMORTIZED COST
COMMERCIAL PAPER - 63.8%
<S> <C> <C> <C> <C>
Allegheny Energy, Inc. 6.69% 09/07/00 $50,000,000 $49,386,750
American Honda Finance 6.60% 09/13/00 7,000,000 6,907,600
AT&T Corp. 6.61% 11/15/00 50,000,000 48,760,625
Bank of America Corp. 6.70% 12/06/00 50,000,000 48,548,333
British Telecommunications PLC 6.00% 07/31/00 50,000,000 49,766,666
Catholic Healthcare Partners*** 6.75% 10/04/00 11,488,000 11,287,678
Credit Suisse First Boston, Inc.*** 6.03% 08/18/00 50,000,000 49,614,750
Daimler Chrysler AG Holdings 6.23% 10/18/00 75,000,000 73,611,229
Deutsche Bank Financial 6.61% 11/06/00 50,000,000 48,843,250
Duff & Phelps Utility & Corp.*** 6.72% 11/20/00 12,500,000 12,173,333
Duff & Phelps Utility & Corp.*** 6.68% 11/03/00 11,193,000 10,937,538
E.I. duPont De Nemours Co. 5.98% 08/28/00 20,000,000 19,813,955
E.I. duPont De Nemours Co. 6.02% 10/04/00 50,000,000 49,222,417
General Electric Capital Corp. 6.66% 03/06/01 50,000,000 47,724,500
Household Finance Corp. 6.63% 12/13/00 50,000,000 48,499,042
Johnson & Johnson*** 5.79% 07/05/00 25,000,000 24,991,958
Merrill Lynch & Co. 6.01% 07/26/00 60,000,000 59,769,617
Monsanto Co. 5.95% 07/06/00 30,000,000 29,985,125
Motorola, Inc. 6.65% 09/18/00 50,000,000 49,288,819
National Rural Utilities 6.05% 08/07/00 25,000,000 24,852,952
Standard Life Funding 6.17% 08/10/00 25,000,000 24,837,180
Toronto Dominion Holdings 6.64% 09/19/00 50,000,000 49,280,667
Xerox Credit Corp. 6.18% 07/12/00 25,000,000 24,961,375
TOTAL COMMERCIAL PAPER
(Cost$863,065,360 ) 863,065,360
CORPORATE OBLIGATIONS - 17.4%
American General Corp. 9.63% 07/15/00 3,000,000 3,002,944
American Honda Finance Corp.*** 6.89%* 08/21/00 10,000,000 10,005,791
Aquarium Holdings KY*** 6.69%* 07/06/00 13,208,000 13,208,000
Austin Printing Co., Inc.*** 6.76%* 07/06/00 2,515,000 2,515,000
AT&T Corp.*** 6.73%* 08/07/00 10,000,000 10,001,249
Bank One Corp.*** 6.84%* 08/18/00 10,000,000 10,001,464
Bath Technologies, Inc.*** 6.79%* 07/06/00 1,460,000 1,460,000
Bath Technologies, Inc.*** 6.76%* 07/06/00 4,400,000 4,400,000
Beaver Creek Enterprise*** 6.76%* 07/06/00 2,150,000 2,150,000
Branch Banking and Trust 7.06%* 08/30/00 10,000,000 10,011,591
Care Life Project*** 6.76%* 07/06/00 3,600,000 3,600,000
Clark Grave Vault Co.*** 6.69%* 07/06/00 2,250,000 2,250,000
Coughlin Family Prop., Inc.*** 6.69%* 07/06/00 3,405,000 3,405,000
Damascus-Bishop Tire*** 6.76%* 07/06/00 9,500,000 9,500,000
Danis Construction Co.*** 6.69%* 07/06/00 5,000,000 5,000,000
D.E.D.E. Realty*** 6.69%* 07/06/00 3,575,000 3,575,000
Doren, Inc.*** 6.76%* 07/06/00 200,000 200,000
Espanola/Nambe*** 6.76%* 07/06/00 1,905,000 1,905,000
Ford Motor Credit Co. 6.30%* 10/02/00 900,000 900,000
Ford Motor Credit Co. 10.13% 11/15/00 1,000,000 1,010,324
GTE Corp. 6.83%* 09/11/00 40,000,000 39,986,264
General Motors Acceptance Corp. 5.63% 09/11/00 85,000 84,008
<PAGE>
Gordon Flesch Co. Project*** 6.76%* 07/06/00 1,000,000 1,000,000
Hancor, Inc.*** 6.76%* 07/06/00 500,000 500,000
IBM Corp. 6.04% 08/07/00 3,000,000 2,999,380
Isaac Tire, Inc.*** 6.69%* 07/06/00 955,000 955,000
Jackson Tube Service, Inc.*** 6.69%* 07/06/00 4,800,000 4,800,000
J.W. Harris Co., Inc.*** 6.69%* 07/06/00 4,100,000 4,100,000
K.L. Morris, Inc.*** 6.69%* 07/06/00 2,165,000 2,165,000
Luken-Woodlawn LLC*** 6.69%* 07/06/00 3,655,000 3,655,000
Merrill Lynch & Co. 6.35% 07/24/00 250,000 250,039
MetLife Insurance Co.**** 6.34%* 07/03/00 20,000,000 20,000,000
Miami Valley Steel*** 6.76%* 07/06/00 2,050,000 2,050,000
Mubea, Inc.*** 6.76%* 07/06/00 11,925,000 11,925,000
Ohio Presbyterian Retirement Services*** 6.76%* 07/06/00 6,245,000 6,245,000
O.K.I. Supply Co.*** 6.69%* 07/06/00 2,000,000 2,000,000
Osco Industries, Inc.*** 6.76%* 07/06/00 2,400,000 2,400,000
Presrite Corp.*** 6.76%* 07/06/00 1,360,000 1,360,000
Pro Tire, Inc.*** 6.69%* 07/06/00 1,145,000 1,145,000
R.I. Lampus Co.*** 6.76%* 07/06/00 1,780,000 1,780,000
RSD Technology LLC*** 6.76%* 07/06/00 5,365,000 5,365,000
Seariver Maritime, Inc.*** 6.60%* 07/03/00 6,000,000 6,000,000
SGS Tool Company*** 6.76%* 07/06/00 1,440,000 1,440,000
Surgery Financing Co.*** 6.76%* 07/06/00 6,240,000 6,240,000
White Castle Project*** 6.76%* 07/06/00 8,250,000 8,250,000
TOTAL CORPORATE OBLIGATIONS
(Cost$234,796,054 ) 234,796,054
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.1%
Federal Home Loan Bank Note 5.30% 12/01/00 1,000,000 993,123
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $993,123 ) 993,123
U.S. TREASURY OBLIGATIONS - 0.0%
** U.S. Treasury Bill 5.64% 01/04/01 63,100 61,272
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $61,272 ) 61,272
CERTIFICATES OF DEPOSIT - 3.7%
Wilmington Trust Co. 6.92% 10/03/00 50,000,000 50,001,248
TOTAL CERTIFICATES OF DEPOSIT
(Cost $50,001,248 ) 50,001,248
<PAGE>
REPURCHASE AGREEMENTS - 15.0%
State Street Securities LLC, 6.40%, 07/03/00, (Collateralized by 6.40% 07/03/00 30,037,000 30,037,000
$30,335,000 Federal Home Loan Bank Note, 5.875%, 08/15/01,
market value - $30,638,350)
Smith Barney Securities LLC, 7.19%, 07/03/00, (Collateralized by 7.185% 07/03/00 173,794,000 173,794,000
$178,397,271 various commercial papers, 6.58 - 6.63%,
07/03/00 - 09/25/00, market value - $177,270,008)
TOTAL REPURCHASE AGREEMENTS
(Cost $203,831,000 ) 203,831,000
TOTAL INVESTMENTS - 100.0%
(Cost $1,352,748,057)(a) $1,352,748,057
TRUSTEE DEFERRED COMPENSATION***** SHARES VALUE
Flex-funds Highlands Growth Fund 783 $16,985
Flex-funds Muirfield Fund 1,587 9,874
Flex-funds Total Return Utilities Fund 404 8,281
Meeder Advisor International Equity Fund 631 9,483
TOTAL TRUSTEE DEFERRED COMPENSATION
(Cost $44,623 ) $44,623
<FN>
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate security. Interest rate is as of June 30, 2000. Maturity date
reflects the next rate change date.
** Pledged as collateral on Letter of Credit.
*** Security is restricted as to resale to institutional investors, but has
been deemed liquid in accordance with guidelines approved by the Board of
Trustees.
**** Illiquid security. The sale or disposition of such security would not be
possible in the ordinary course of business within seven days at
approximately the value at which the Fund has valued the security.
***** Assets of affiliates to the Money Market Portfolio held for the benefit of
the Portfolio's Trustees in connection with the Trustee Deferred
Compensation Plan.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF ASSETS & LIABILITIES
JUNE 30, 2000 (UNAUDITED)
INSTITUTIONAL
FUND
Assets
Investment in corresponding portfolio, at value $1,132,336,970
Receivable from investment advisor 347,541
Other assets 49,029
Total Assets 1,132,733,540
Liabilities
Dividends payable 6,820,355
Accrued transfer agent and administrative fees 115,384
Accrued distribution plan fees 75,850
Other accrued liabilities 2,262
Total Liabilities 7,013,851
Total Net Assets $1,125,719,689
Net Assets
Capital 1,125,719,689
Total Net Assets $1,125,719,689
Capital Stock Outstanding 1,125,719,689
(indefinite number of shares authorized, $0.10 par value)
Net Asset Value, Offering and Redemption Price Per Share $1.00
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
INSTITUTIONAL
FUND
Net Investment Income from Corresponding Portfolio
Interest $37,394,779
Expenses net of waivers and/or reimbursements (1,123,182)
Total Net Investment Income from Corresponding Portfolio 36,271,597
Fund Expenses
Administrative 303,066
Transfer agent 363,679
Distribution plan 192,567
Registration and filing 38,262
Insurance 4,892
Printing 1,711
Legal 1,274
Postage 1,173
Audit 1,008
Other 13,897
Total Expenses 921,529
Expenses reimbursed by investment advisor (614,007)
Net Expenses 307,522
Net Investment Income 35,964,075
Net Increase in Net Assets Resulting from Operations $35,964,075
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
INSTITUTIONAL FUND
<TABLE>
<CAPTION>
Six months
ended Year
June 30, 2000 ended
(unaudited) December 31, 1999
Increase (Decrease) in Net Assets
Operations
<S> <C> <C>
Net investment income $35,964,075 $48,284,616
Net increase in net assets resulting from operations 35,964,075 48,284,616
Dividends and Distributions to Shareholders from
Net investment income (35,964,075) (48,284,616)
Net decrease in net assets resulting from dividends and (35,964,075) (48,284,616)
distributions
Capital Transactions
Issued 3,596,411,247 5,636,817,728
Reinvested 1,376,922 2,433,438
Redeemed (3,340,237,219) (5,412,913,706)
Net increase in net assets resulting from capital transactions 257,550,950 226,337,460
Total Increase in Net Assets 257,550,950 226,337,460
Net Assets - Beginning of Period 868,168,739 641,831,279
Net Assets - End of Period $1,125,719,689 $868,168,739
Share Transactions
Issued 3,596,411,247 5,636,817,728
Reinvested 1,376,922 2,433,438
Redeemed (3,340,237,219) (5,412,913,706)
Change in shares 257,550,950 226,337,460
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
INSTITUTIONAL FUND
<TABLE>
<CAPTION>
Six months Year Year Year Year Year
ended ended ended ended ended ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Income from Investment Operations
Net investment income 0.030 0.050 0.054 0.054 0.053 0.059
Total from Investment Operations 0.030 0.050 0.054 0.054 0.053 0.059
Less Dividends and Distributions
From net investment income (0.030) (0.050) (0.054) (0.054) (0.053) (0.059)
Total Dividends and Distributions (0.030) (0.050) (0.054) (0.054) (0.053) (0.059)
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Total Return 3.02%(3) 5.13% 5.49% 5.53% 5.43% 6.01%
Ratios/Supplemental Data
Net assets, end of period ($000) $1,125,720 $868,169 $641,831 $415,994 $232,142 $113,205
Ratio of expenses to average net assets 0.24%(2) 0.25% 0.24% 0.25% 0.25% 0.25%
Ratio of net investment income to average net assets 5.93%(2) 5.01% 5.34% 5.41% 5.30% 5.87%
Ratio of expenses to average net assets 0.45%(2) 0.45% 0.45% 0.47% 0.46% 0.55%
before reimbursement/waiver of fees(1)
Ratio of net investment income to average net 5.72%(2) 4.81% 5.13% 5.19% 5.09% 5.57%
assets before reimbursement/waiver of fees(1)
<FN>
(1) Ratio includes fees waived in corresponding portfolio.
(2) Annualized.
(3) Not annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE INSTITUTIONAL 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. This report only contains the financial statements of the Institutional
Fund. The Institutional Fund (the "Fund") invests all of its investable assets
in a corresponding open-end management investment company (the "Portfolio")
having the same investment objective as the Fund. The Fund, the Portfolio into
which the Fund invests and the percentage of the Portfolio owned by the Fund is
as follows:
PERCENTAGE OF PORTFOLIO
OWNED BY FUND AS OF JUNE
FUND PORTFOLIO 30, 2000
Institutional Fund Money Market Portfolio 83%
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
The Fund values its investment in the corresponding Portfolio at fair value.
Valuation of securities held by the Portfolio is further described at Note 2 of
the Portfolio's Notes to Financial Statements.
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.
DISTRIBUTIONS TO SHAREHOLDERS
The Fund declares dividends from net investment income on a daily basis and pays
such dividends on a monthly basis. The Fund 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 income tax regulations which may differ from
generally accepted accounting principles. Accordingly, timing differences
relating to shareholder distributions are reflected in the components of net
asets and permanent book and tax differences relating to shareholder
distributions have been reclassified to capital.
<PAGE>
INVESTMENT INCOME & EXPENSES
The fund records daily its proportionate share of the Portfolio's income,
expense, and realized and unrealized gains and losses. In addition, 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
Funds based on each Fund's relative net assets or other appropriate basis.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management (f/k/a R. Meeder & Associates) ("MAM"), a wholly-owned
subsidiary of Muirfield Investors, Inc. ("MII"), provides the Portfolio with
investment management, research, statistical and advisory services.
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 $20 per active shareholder account or 0.06% 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 of the Fund, including expenses allocated from its respective Portfolio
(excluding interest, taxes, brokerage fees, and extraordinary expenses), exceed
0.26% of average daily net assets of the Fund. Such reimbursement is limited to
the total of fees charged to the Fund by MAM and MFSCo.
Pursuant to Rule 12b-1 of the Act, the Fund has adopted a Distribution Plan (the
"Plan"). Under the terms of the Plan, the Fund may incur certain expenses
associated with the distribution of fund shares in amounts not to exceed 0.03%
of the average daily net assets of the Fund on an annual basis.
Certain officers of the Fund and trustees of the Trust and the Portfolio are
also officers or directors of MII, MAM and MFSCo.
<PAGE>
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 2000 (UNAUDITED)
Money
Market
Portfolio
Assets
Investments, at market value* $1,148,917,057
Repurchase agreements, at cost* 203,831,000
Trustee deferred compensation investments, at market value 44,623
Cash 675
Receivable from corresponding Fund 1,821,618
Interest and dividend receivable 2,394,824
Prepaid expenses/other assets 146,658
Total Assets 1,357,156,455
Liabilities
Payable for Trustee Deferred Compensation Plan 44,623
Payable to investment advisor 192,239
Accrued fund accounting fees 15,903
Other accrued liabilities 15,464
Total Liabilities 268,229
Total Net Assets $1,356,888,226
Net Assets
Capital 1,356,888,226
Total Net Assets $1,356,888,226
*Securities at cost $1,352,748,057
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
Money
Market
Portfolio
Net Investment Income
Interest $44,887,494
Total Net Investment Income 44,887,494
Expenses
Investment advisor 1,912,928
Accounting 92,102
Trustee 16,890
Audit 6,489
Custodian 53,143
Legal 1,181
Insurance 69,622
Other 3,713
Total Expenses 2,156,068
Investment advisor fees waived (807,397)
Total Net Expenses 1,348,671
Net Investment Income (Loss) 43,538,823
Realized and Unrealized Gain (Loss) from Investments
Net Increase (Decrease) in Net Assets Resulting from Operations $43,538,823
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
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
Six months
ended Year
6/30/00 ended
(unaudited) 12/31/99
Increase (Decrease) in Net Assets
Operations
<S> <C> <C>
Net investment income (loss) $43,538,823 $59,927,411
Net increase in net assets resulting from operations 43,538,823 59,927,411
Transactions of Investors' Beneficial Interests
Contributions 3,324,388,039 6,273,721,231
Withdrawals (3,115,235,238) (6,027,721,363)
Net increase (decrease) in net assets resulting from
transactions of investors' beneficial interests 209,152,801 245,999,868
Total Increase (Decrease) in Net Assets 252,691,624 305,927,279
Net Assets - Beginning of Period 1,104,196,602 798,269,323
Net Assets - End of Period $1,356,888,226 $1,104,196,602
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Ratios/ Supplementary Data
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO Six months Year Year Year Year Year
ended ended ended ended ended ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net assets, end of period ($000) $1,356,888 $1,104,197 $798,269 $587,019 $352,930 $256,126
Ratio of expenses to average net assets 0.18%(1) 0.18% 0.18% 0.18% 0.19% 0.21%
Ratio of net investment income to average net assets 5.90%(1) 5.07% 5.39% 5.47% 5.34% 5.87%
Ratio of expenses to average net assets 0.29%(1) 0.30% 0.30% 0.31% 0.33% 0.37%
before waiver of fees
Ratio of net investment income to average net assets 5.79%(1) 4.95% 5.27% 5.34% 5.20% 5.70%
before waiver of fees
<FN>
(1) Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
INSTITUTIONAL FUND SEMI-ANNUAL REPORT
Notes to Financial Statements
June 30, 2000 (Unaudited)
1. ORGANIZATION
The Institutional Fund (the "Fund") invests all of its investable assets in a
corresponding open-end management investment company (a "Portfolio") having the
same investment objective as the Fund. The Portfolio is registered under the
Investment Company Act of 1940, as amended (the "Act"), 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 investment objective of the Money Market Portfolio is to seek current income
and stable net asset values through investment in a portfolio of money market
instruments. The financial statements of the Fund are included elsewhere in this
report.
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.
INVESTMENTS
Money market securities held in the Portfolio are valued at amortized cost,
which approximates market value.
REPURCHASE AGREEMENTS
The Portfolio may engage in repurchase agreement transactions whereby the
Portfolio takes possession of an underlying debt instrument subject to an
obligation of the seller to repurchase the instrument from the Portfolio and an
obligation of the Portfolio to resell the instrument at an agreed upon price and
term. At all times, the Portfolio 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 Portfolio 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 Portfolios until distributed in
accordance with the Plan.
LETTER OF CREDIT
The Portfolio has pledged as collateral a U.S. Government security, cash or
other high-grade debt security solely for the benefit of ICI Mutual Insurance
Co. for the Portfolio's fidelity bond coverage.
INCOME TAXES
The Portfolio will be treated as a partnership for Federal income tax purposes.
As such, each investor in the Portfolio will be subject to taxation on its share
of the Portfolio's ordinary income and capital gains. It is the Portfolio's
policy to comply with the requirements of the Internal Revenue Code applicable
to it. Therefore, no Federal income tax provision is required.
<PAGE>
SECURITIES TRANSACTIONS
The Portfolio records security transactions on the trade date. Interest income
(including amortization of premium and accretion of discount) is recognized as
earned.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management (f/k/a R. Meeder & Associates) ("MAM"), a wholly-owned
subsidiary of Muirfield Investors, Inc. ("MII"), provides the Portfolio with
investment management, research, statistical and advisory services. For such
services the Portfolio pays monthly a fee at the following annual rates: 0.40%
of average daily net assets up to $100 million and 0.25% of average daily net
assets exceeding $100 million. During the six months ended June 30, 2000, MAM
voluntarily waived a portion of its investment advisory fees in the Portfolio.
Mutual Funds Service Co. ("MFSCo"), a wholly-owned subsidiary of MII, serves as
accounting services agent for the Portfolio. In compensation for such services
the Portfolio pays MFSCo an annual fee equal to the greater of:
a. 0.15% of the first $10 million of average daily net assets,
0.10% of the next $20 million of average daily net assets,
0.02% of the next $50 million of average daily net assets, and
0.01% in excess of $80 million of average daily net assets, or
b. $30,000.
Certain officers and trustees of the Portfolio are also officers or directors of
MII, MAM and MFSCo.
4. SECURITIES TRANSACTIONS
As of June 30, 2000, the aggregate cost basis of investments for Federal income
tax purposes was $1,352,748,057.
<PAGE>
MANAGER AND INVESTMENT ADVISOR
Meeder Asset Management
6000 Memorial Drive
P.O. Box 7177
Dublin, Ohio 43017
BOARD OF TRUSTEES
Milton S. Bartholomew
Dr. Roger D. Blackwell
James Didion
Charles Donabedian
Robert S. Meeder, Sr.
Robert S. Meeder, Jr.
Jack Nicklaus II
Walter L. Ogle
Philip A. Voelker
CUSTODIAN
Firstar Bank, N.A. Cincinnati
Cincinnati, Ohio 45201
TRANSFER AGENT DIVIDEND DISBURSING AGENT
Mutual Funds Service Co.
6000 Memorial Drive
Dublin, Ohio 43017
AUDITORS
KPMG LLP
Columbus, Ohio 43215
<PAGE>
MEEDER ADVISOR FUNDS
6000 Memorial Drive, P.O. Box 7177
Dublin, Ohio 43017
1-800-494-3539
1-614-766-7000
Fax 1-614-766-6809
