MEEDER ADVISOR FUNDS
2000 SEMI-ANNUAL REPORT
Tactical Asset Allocation Fund
Utility Growth Fund
Core Equity Fund
International Equity Fund
June 30, 1999
MEEDER ADVISOR FUNDS
P.O. Box 7177 [PHOTO]
Dublin, Ohio 43017
800-494-3539
Distributed by
Adviser Dealer Services, Inc.
<PAGE>
PERFORMANCE CAPSULE
Period & Average Annual Total Returns
as of 6/30/00
<TABLE>
<CAPTION>
BEFORE DEDUCTION TACTICAL ASSET
OF SALES CHARGES ALLOCATION FUND(1) UTILITY GROWTH FUND(2) CORE EQUITY FUND(3) INTERNATIONAL(4)
A Shares C Shares A Shares C Shares A Shares C Shares EQUITY FUND
-------- -------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Year to Date -11.66% 11.87% 5.31% 5.02% -0.88% -1.04% -2.88%
1 Year -8.25% 8.57% 12.34% 11.71% 4.66% 4.38% 23.01%
3 Years 10.41 10.23% 18.75% 18.36% -- -- --
5 Years -- 12.15% -- -- -- -- --
Life of Fund 13.17% 12.82% 18.09% 17.77% 15.04% 14.87% 14.73%
</TABLE>
<TABLE>
<CAPTION>
NET OF TACTICAL ASSET
SALES CHARGES ALLOCATION FUND UTILITY GROWTH FUND CORE EQUITY FUND INTERNATIONAL
A Shares* C Shares** A Shares* C Shares** A Shares* C Shares** EQUITY FUND*
-------- -------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Year to Date -16.72% -13.13% -0.73% 3.52% -6.60% -2.53% -8.47%
1 Year -13.52% -9.65% 5.89% 10.23% -1.34% 2.88% 15.91%
3 Years 8.26% 10.23% 16.43% 18.36% -- -- --
5 Years -- 12.15 -- -- -- -- --
Life of Fund 11.48% 12.82% 16.69% 17.77% 12.74% 14.87% 12.36%
</TABLE>
To obtain a prospectus containing more complete information about Meeder Advisor
Funds, including other fees and expenses that apply to a continued investment in
the Funds, 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.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. All performance figures
represents total returns and average annual total returns for the periods ended
6/30/99. 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 waived a portion of its management fees and/or reimbursed
expenses in order to reduce the operating expenses of the Tactical Asset
Allocation Fund, Utility Growth Fund, Core Equity Fund, and International Equity
Fund during each period shown above.
* Reflects the deduction of 5.75% maximum sales charges.
** Reflects the deduction of contingent deferred sales charges as follows:
1.50% if redeemed within 18 months from date of purchase; 0.75% if redeemed
after 18 months but within 24 months from date of purchase; 0.00%
thereafter.
1 Inception Date for Class A shares 8/1/96; for Class C shares 6/1/95.
2 Inception Date for Class A and Class C shares 7/11/95.
3 Inception Date for Class A and Class C shares 7/31/97.
4 Inception Date 9/2/97.
<PAGE>
SEMI-ANNUAL MARKET COMMENTARY
Those of us who have taken a more tempered approach to the
technology-powered bull equity market over the last two-and-a- half years,
warning investors time and again of the perils of sky-high stock valuations and
narrow market leadership, were vindicated in the first six months of 2000. It
seems that investors finally paid attention to fundamentals such as dividends,
p/e ratios, corporate profits and real earnings -- statistics that as of late
seemed only to matter to Finance 101 students.
So far this year, we have witnessed tremendous rotation in the equity
market. Investors began the year with a tech-stock buying binge, accumulating
technology issues and selling off "old economy" stocks. Then, upon dumping these
very same technology and dot-com stocks, they doted on the classic equities of
the "old economy". The Nasdaq Composite Index* - seen by many investors as the
pulse of the "new economy" - surged in the 1st Quarter, returning 12% for the
quarter while the S&P 500* eked out a 2% gain and the Dow Jones Industrial
Average* declined more than 4%. However, the tide turned in March as the Nasdaq
fell nearly 10% on three separate trading days. This occurred even while many
technical indicators of broad market performance, such as advance/decline
statistics, showed signs of improvement.
The declines increased dramatically in April and May. Upon reaching its
lowest point for the year on May 23, the Nasdaq Composite Index declined 37%
from its March 10 high. The S&P 500 declined 10% from its high on March 23 to
its low point on April 14. However, during the short 4-day trading week
following Memorial Day, the Nasdaq jumped 19% -- its highest weekly increase on
record. The S&P 500 rose 7% during this week as well. The market was relatively
quiet for the remainder of June, with the major indices closing out a wild
six-month period in a narrow trading range.
In the fixed income market, bonds staged a rally that brought yields on
10-year Treasury notes down to 6.04% on June 30 from 6.45% on December 31, 1999.
Most of this rally occurred despite the fact that the Federal Reserve Board
increased the short-term Federal Funds target rate three times during this
period. The Fed's actions were prompted by inflationary pressures which were
fueled by tightening labor markets and rising energy prices.
While the bond rally seemed orderly on the surface, the fixed income market
was in fact quite volatile during the first six months of 2000. Beginning in
January and lasting through April, securities maturing seven years or longer
rallied. Quality spreads widened as corporate bonds were excluded from the
upturn and the Treasury yield curve inverted. As investors priced their
expectations of the Federal Open Market Committee's meetings in May and June,
yields on 10-year notes rose from 5.80% to 6.57%. In the end, however, the
Treasury market rallied again to close June 30 at a yield of 6.04% .
* The NASDAQ Composite Index is an unmanaged index of all the stocks traded on
the NASDAQ exchange. The S&P 500 Composite Stock Index is an unmanaged index
based on market capitalization. The Dow Jones Industrial Average is an unmanaged
index of 30 selected stocks. These indices incur no sales charges, expenses, or
fees. Past performance of an index does not guarantee future results. It is not
possible to invest directly in an index.
<PAGE>
SEMI-ANNUAL MARKET COMMENTARY
Continued from Page 3
The volatile and weak equity market naturally affected the performance of
our funds. THE TACTICAL ASSET ALLOCATION FUND was overweighted in technology and
telecommunications while these sectors corrected in April and May. On top of
this, our investment discipline did not perform in a manner that we expected as
the market indices declined. The Fund declined -14.27% for Class A Shares and
-14.37% for Class C Shares before sales charges in the 2nd Quarter. For the year
to date, the Fund was down -11.66% for Class A Shares and -11.83% for Class C
Shares before sales charges. More detailed commentary about the Tactical Asset
Allocation Fund can be found on page 5.
During the 1st Quarter, the advance in telecommunications stocks aided the
performance of THE UTILITY GROWTH FUND. As investors moved to relatively safe
stocks during the tech slide, the overall utilities sector enjoyed strong
performance. The Utility Growth Fund had a 5.31% year-to-date total return for
Class A Shares and 5.02% year-to-date total return for Class C Shares before
sales charges. More detailed commentary on the Utility Growth Fund can be found
on page 6.
THE CORE EQUITY FUND was heavily weighted toward technology as well, with
about 30% of the Fund's portfolio invested in the sector. However, the Fund's
"sector neutral, style neutral" investment strategy kept the Fund on par with
its benchmark during the first half of 2000, declining -0.88% for Class A Shares
and -1.04% for Class C Shares before sales charges, compared to the -0.43%
decline of the S&P 500 Index over the same period. More detailed commentary
about The Core Equity Fund can be found on page 7.
Equity markets around the world also experienced high volatility and sharp
corrections in the "new economy" sectors. THE INTERNATIONAL EQUITY FUND
overweighted these sectors early in the year, and enjoyed strong relative
returns as these sectors performed well. By June 30, however, the Fund was hurt
by the slide in global technology stocks, declining -2.88% for the year-to-date
before sales charges. The MSCI EAFE Index decline -1.73% over the same period.
More detailed commentary on the International Equity Fund can be found on page
8.
We believe the markets are at a critical defining point as we look ahead to
the second half of 2000. On the bright side, the Federal Reserve may achieve the
desired "soft landing" for the U.S. economy and the bulls can resume their
charge in the equity markets. On the dark side, inflationary pressures may
continue to swell, compelling the Federal Reserve to raise rates again. Even
worse, the economy may have already turned to the downside.
Over the last six months, volatility in the financial markets has created
more uncertainty and less clarity for investors. It is essential, therefore,
that investors utilize the experience and expertise of seasoned professional
investment managers to help them strive for their long-term financial goals.
<PAGE>
TACTICAL ASSET ALLOCATION FUND
MARKET PERSPECTIVE
The first half of the Year 2000 was a tale of two quarters for The Tactical
Asset Allocation Fund. Looking at the first quarter of 2000, our Strategic Fund
Selection discipline identified early the opportunity for continued overwhelming
strength in the telecommunications and technology sectors. The risk/reward
relationships in the equity market improved as more stocks participated in the
advance of the market. Moreover, our interest rate models turned positive after
over twelve months negative territory. These factors turned our investment
discipline positive, and we increased our equity exposure from 50% to 75% on
March 17.
The 2nd Quarter was a different story. Not only did the equity market
suffer its worse decline in a number of years, but the Fund was overweighted in
technology and telecommunications while these sectors corrected during this weak
two-month period. These same holdings contributed greatly to the Fund's
performance in the 1st Quarter and in previous years, but it hurt us when these
sectors corrected in the second quarter. Also, in the 2nd Quarter our investment
discipline did not perform in the manner that we expected. By mid-April, the
market indices declined below our stop-loss levels (considered the last line of
defense in our strategy) and we quickly adopted a fully defensive position. By
May, the market stabilized and we increased equity exposure of the Fund to 50%,
investing predominantly in funds that track the performance of the S&P 500
index.
From a historical standpoint, last quarter's returns were uncharacteristic,
and it is important for investors to keep a long-term perspective with their
equity investments. It is important to realize that the Fund's weaker
performance can be isolated to just two months: April and May. Our disciplines
have provided competitive results, and we believe that they will do so in the
future. For the second half of the year, we are looking for a clearer investment
picture to develop in the equity markets before making a further commitment to
increase our exposure. We believe that our investment discipline is positioned
to seek out opportunities for investors, wherever they appear in financial
markets.
[PHOTOS] Robert S. Meeder and Philip A. Voelker, Portfolio Managers
PERFORMANCE PERSPECTIVE
PERIOD & AVERAGE ANNUAL TOTAL
RETURNS as of 6/30/00
before sales charges Class A Class C
-------------------- ------- -------
Year to Date -11.66% -11.83%
1 Year -8.25% -8.57%
3 Years 10.41% 10.23%
5 Years -- 12.15%
Life of Fund* 13.17% 12.82%
net of sales charges** Class A Class C
---------------------- -------- -------
Year to Date -16.72% -13.13%
1 Year -13.52% -9.65%
3 Years 8.26% 10.23%
5 Years -- 12.15%
Life of Fund* 11.48% 12.82%
* Inception Date: Class A 8/1/96; Class C 6/1/95
** Class A shares reflect deduction of 5.75% maximum sales charges. Class C
shares reflect deduction of contingent deferred sales charges as follows:
1.50% if redeemed within 18 months from date of purchase; 0.75% if redeemed
after 18 months but within 24 months from date of purchase; 0.00%
thereafter.
Please see additional fund performance information on page 2.
PORTFOLIO HOLDINGS as of 6/30/00*
[GRAPH] The following information was presented as a pie chart:
1) Cash Equivlaents 59%
2) Federated S&P MAX-Cap Fund 30%
3) S&P 500 Futures 11%
*Portfolio holdings are subject to change.
<PAGE>
UTILITY GROWTH FUND
SEMI-ANNUAL MARKET PERSPECTIVE
The Utility Growth Fund outperformed the average utility fund for the first
half of the year, with a total return of 5.31% for Class A Shares and 5.02% for
Class C Shares before sales charges. In comparison, the average utility fund
returned 1.84%, according to Morningstar.
Fund selection was key to performance in the first half of 2000. The
utilities market was generally weak to start the year, but picked up as
investors sought refuge in the usual "defensive" stocks -- many of which are in
the utilities market -- as declines spread through the equity market during the
period from March to May. Our gas distribution holdings helped substantially
during this time, although light merger and acquisition activity and sluggish
performance from the telecom sector constrained Fund performance.
We are also anticipating the possibility of revaluation of several
"traditional" stocks in our portfolio, if investors return from ethereal
valuation levels to the real truths on investing. Following the equity market
decline in the 2nd Quarter, many of our favorite stocks are now attractively
priced, giving us the opportunity to increase our positions at reasonable
valuation levels.
Our positive view of the investment environment for utilities remains
unchanged. Uncertainty in other areas of the equity market should benefit our
more predictable niche of the investment universe. We are watching some areas of
the market closely-namely, the electric and natural gas sectors, which are
strained by increased demand. All in all, the current utilities market is more
interesting than it has been in many years, and investors must be watchful for
opportunities for growth.
BECAUSE THE UTILITY GROWTH FUND CONCENTRATES ITS INVESTMENTS IN PUBLIC
UTILITY COMPANIES, THE VALUE OF THE FUND'S SHARES MAY FLUCTUATE MORE THAN IF
INVESTED IN A GREATER NUMBER OF INDUSTRIES. CHANGES IN INTEREST RATES MAY ALSO
AFFECT THE VALUE OF UTILITY STOCKS, AND RISING INTEREST RATES CAN BE EXPECTED TO
REDUCE THE UTILITY GROWTH FUND'S NET ASSET VALUE.
[PHOTO] Lowell G. Miller, Portfolio Manager
PERFORMANCE PERSPECTIVE
PERIOD & AVERAGE ANNUAL TOTAL
RETURNS as of 6/30/00
before sales charges Class A Class C
-------------------- ------- -------
Year to Date 5.31% 5.02%
1 Year 12.34% 11.71%
3 Years 18.75% 18.36%
Life of Fund* 18.09% 17.77%
net of sales charges** Class A Class C
---------------------- ------- -------
Year to Date -0.73% 3.52%
1 Year 5.89% 10.23%
3 Years 16.43% 18.36%
Life of Fund* 16.69% 17.77%
* Inception Date for Class A and Class C shares 7/11/95
** Class A shares reflect deduction of 5.75% maximum sales charges. Class C
shares reflect deduction of contingent deferred sales charges as follows:
1.50% if redeemed within 18 months from date of purchase; 0.75% if redeemed
after 18 months but within 24 months from date of purchase; 0.00%
thereafter.
Please see additional fund performance information on page 2.
SECTOR WEIGHTINGS as of June 30, 2000*
[GRAPH] The following information was presented as a pie chart:
1) Telecomm. Services 28%
2) Oil/Gas Domestic 21%
2) Natural Gas (Distributor) 16%
4) Electric Utility 13%
5) Electric/Gas Utility 11%
6) Water Utility 7%
7) Computer Software 1%
8) Cash Equivalents 3%
* Sector Weightings are subject to change.
<PAGE>
CORE EQUITY FUND
SEMI-ANNUAL MARKET PERSPECTIVE
For the six months ended June 30, 2000, the Core Equity Fund underperformed
its benchmark, the S&P 500 Index. The Fund declined -0.88% for Class A Shares
and -1.04% for Class C Shares before sales charges during this period, compared
with the -0.43% decline for the S&P 500. Sector rotation was fast and furious
and the market gave investors several reasons to sell in the 1st Quarter: two
short-term rate increases by the Federal Reserve Board; an inverted yield curve;
and strange behavior in the technology and "new economy" sectors. The Fund's
"sector neutral, style neutral" investment strategy seeks to avoid overweighting
or underweighting any sector. Thus, Fund performance is more closely related to
the performance of the S&P 500 Index.
In addition to rotation, the stock market also experienced sharp volatility
in the first half of 2000. The major market indices rose or fell by 1% or more
on 55 trading days in the 1st and 2nd Quarters. We have commented on the
volatility of the market for many quarters now, and it seems this condition is
unlikely to change anytime soon. Although stock market performance was by and
large positive in June.
One key to the future growth of equities is interest rates. The Fed has now
raised short-term rates six times in the last 12 months. If we are nearing the
end of this cycle of rate increases, it appears likely that financial services
and other rate-sensitive sectors will get a boost from renewed investor
interest. It is far from certain, however, that the Fed is done hiking interest
rates this year.
Current consensus is that the Federal Reserve will be able to achieve a
"soft landing" for the U.S. economy, although every economic report that comes
out adds more uncertainty to the outcome. It is certain that the equity market
will require a lessening in the interest rates in order to resume growth.
[PHOTO] William L. Gurner, Portfolio Manager
PERFORMANCE PERSPECTIVE
PERIOD & AVERAGE ANNUAL TOTAL
RETURNS as of 6/30/00
before sales charges Class A Class C
-------------------- ------- -------
Year to Date -0.88% -1.04%
1 Year 4.66% 4.38%
Life of Fund* 15.04% 14.87%
net of sales charges** Class A Class C
---------------------- ------- -------
Year to Date -6.60% -2.53%
1 Year -1.34% 2.88%
Life of Fund1 12.74% 14.87%
* Inception Date for Class A and Class C shares 8/1/97
** Class A shares reflect deduction of 5.75% maximum sales charges. Class C
shares reflect deduction of contingent deferred sales charges as follows:
1.50% if redeemed within 18 months from date of purchase; 0.75% if redeemed
after 18 months but within 24 months from date of purchase; 0.00%
thereafter.
Please see additional fund performance information on page 2.
SECTOR WEIGHTINGS as of June 30, 2000*
[GRAPH] The following information was presented as a pie chart:
Sector Manager % of Portfolio
------ ------- --------------
1) Technology RCM 28%
2) Finance Delta Capital 13%
3) Health Alliance 11%
4) Utility Miller Howard 9%
5) Cons. Non-Durables Barrow Hanley 8%
6) Energy Mitchell Group 6%
7) Capital Goods Hallmark 5%
8) Cons. Durables Barrow Hanley 5%
9) Materials & Services Ashland 4%
10) Transportation Miller Howard 1%
11) S&P 500 Futures 7%
12) Cash Equivalents 3%
* Sector Weightings are subject to change.
<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 6/30/00
before deduction of sales charges
---------------------------------
Year to Date........................ -2.88%
1 Year.............................. 23.01%
Life of Fund*....................... 14.73%
net of sales charges**
----------------------
Year to Date........................ -8.47%
1 Year.............................. 15.91%
Life of Fund*....................... 12.36%
* Inception Date 9/2/97
** Reflects deduction of 5.75% maximum sales charges.
Please see additional fund performance information on page 2.
REGIONAL HOLDINGS as of 6/30/00*
[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>
Meeder Advisor Funds
2000 Semi-Annual Report
PORTFOLIO HOLDINGS &
FINANCIAL STATEMENTS
<PAGE>
Mutual Fund Portfolio
Portfolio of Investments as of June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRIES/CLASSIFICATIONS SHARES OR VALUE
FACE AMOUNT
<S> <C> <C>
REGISTERED INVESTMENT COMPANIES - 29.5%
Federated S&P 500 Maxcap Fund 1,467,737 $43,474,373
Mutual Shares Fund 418 7,960
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost$42,201,077 ) 43,482,333
MONEY MARKET REGISTERED INVESTMENT COMPANIES - 64.8%
Charles Schwab Money Market Fund 950,767 950,767
Fidelity Cash Reserve Money Market Fund 94,873,362 94,873,362
TOTAL MONEY MARKET REGISTERED INVESTMENT COMPANIES
(Cost$95,824,129 ) 95,824,129
U.S. GOVERNMENT OBLIGATIONS - 1.7%
U.S. Treasury Bills
* 5.64%, due 01/04/01 30,100 29,168
** 5.79% due 08/31/00 2,464,516 2,477,244
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $2,506,472 ) 2,506,412
REPURCHASE AGREEMENT - 4.0%
Smith Barney Securities LLC, 7.19%, 07/03/00,
(Collateralized by $6,132,233 various commercial
papers, 5.47 - 6.60%, 07/03/00 - 09/25/00,
market value - $6,093,484) 5,974,000 5,974,000
TOTAL REPURCHASE AGREEMENT
(Cost $5,974,000 ) 5,974,000
TOTAL INVESTMENTS - 100.0%
(Cost $146,505,678) $147,786,874
CONTRACTS VALUE
FUTURES CONTRACTS
Long, S&P 500 Futures, face amount $16,632,875
expiring September 2000 45 $16,516,125
TOTAL FUTURES CONTRACTS $16,516,125
<PAGE>
TRUSTEE DEFERRED COMPENSATION***
Flex-funds Highlands Growth Fund 1,574 $35,709
Flex-funds Muirfield Fund 2,765 15,538
Flex-funds Total Return Utilities Fund 609 13,446
Meeder Advisor International Equity Fund 1,204 20,407
TOTAL TRUSTEE DEFERRED COMPENSATION
(Cost $80,979 ) $85,100
<FN>
* Pledged as collateral on Letter of Credit.
** Pledged as collateral on Futures.
*** Assets of affiliates to the Mutual Fund 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>
Utilities Stock Portfolio
Portfolio of Investments as of June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
INDUSTRIES/CLASSIFICATIONS SHARES OR FACE AMOUNT VALUE
<S> <C> <C>
COMMON STOCKS - 96.1%
COMPUTER SOFTWARE & SERVICES - 1.3%
Covad Communications # 15,725 $253,566
ELECTRIC/GAS UTILITY - 10.9%
AGL Resources, Inc. 18,955 304,465
MDU Resources Group, Inc. 14,220 309,285
NiSource, Inc. 26,485 493,283
UtiliCorp United, Inc. 52,978 1,052,928
2,159,961
ELECTRIC UTILITY - 12.6%
Cinergy Corp. 710 18,016
Keyspan Corp. 41,585 1,278,738
Scottish Power PLC - ADR 7,468 249,711
TECO Energy, Inc. 47,215 953,153
2,499,618
NATURAL GAS (DISTRIBUTOR) - 15.6%
Columbia Energy Group 8,905 587,730
Eastern Enterprises 7,975 494,948
MCN Energy Group, Inc. 31,305 686,754
Nicor, Inc. 4,975 162,620
Williams Cos., Inc. 28,200 1,159,725
3,091,777
OIL/GAS (DOMESTIC) - 20.8%
El Paso Natural Gas Co. 15,310 779,853
Enron Corp. 7,710 511,751
Kinder Morgan Energy Partners, L.P. # 19,174 764,563
Kinder Morgan, Inc. 25,680 881,145
Peoples Energy Corp. 10,585 345,997
Questar Corp. 44,695 863,173
4,146,482
TELECOMMUNICATION SERVICES - 27.8%
Alltel Corp. 17,420 1,080,040
Bellsouth Corp. 9,935 422,238
CenturyTel, Inc. 17,035 494,015
Global Crossings Ltd. # 20,929 552,002
GTE Corp. 9,585 591,275
MCI Worldcom Inc. # 10,228 469,826
SBC Communications, Inc. 18,735 857,126
Telephone & DataSystems 5,485 559,470
U.S. West Communications Group 5,950 511,700
5,537,692
<PAGE>
WATER UTILITY - 7.1%
American Water Works Co., Inc. 33,600 842,100
Azurix Corp. # 73,000 565,750
1,407,850
TOTAL COMMON STOCKS
(Cost $17,582,424 ) 19,096,946
U.S. GOVERNMENT OBLIGATION - 0.0%
* U.S. Treasury Bill 5.64%, due 01/04/01 1,000 969
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $971 ) 969
REPURCHASE AGREEMENT - 3.9%
Smith Barney Securities LLC, 7.19%, 07/03/00,
(Collateralized by $786,289 various commercial
papers, 5.47 - 6.60%, 07/03/00 - 09/25/00,
market value - $781,321) 766,000 766,000
TOTAL REPURCHASE AGREEMENT
(Cost $766,000 ) 766,000
TOTAL INVESTMENTS - 100.0%
(Cost $18,349,395 ) $19,863,915
TRUSTEE DEFERRED COMPENSATION**
Flex-funds Highlands Growth Fund 279 $6,328
Flex-funds Muirfield Fund 470 2,640
Flex-funds Total Return Utilities Fund 98 2,157
Meeder Advisor International Equity Fund 224 3,795
TOTAL TRUSTEE DEFERRED COMPENSATION
(Cost $14,161 ) $14,920
<FN>
ADR: American Depositary Receipts
L.P.: Limited Partnership
# Represents non-income producing securities.
* Pledged as collateral on Letter of Credit.
** Assets of affiliates to the Utility Stock Portfolio held for the
benefit of the Portfolio's Trustees in connection with the Trustees
Deferred Compensation Plan.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Growth Stock Portfolio
Portfolio of Investments as of June 30, 2000
(Unaudited)
INDUSTRIES/CLASSIFICATIONS SHARES OR VALUE
FACE AMOUNT
COMMON STOCKS - 90.1%
ADVERTISING - 0.1%
Young & Rubicam, Inc. 650 $37,091
AEROSPACE/DEFENSE - 0.7%
Boeing Co. 5,700 239,043
General Dynamics Corp. 600 31,312
Lockheed Martin Corp. 2,050 50,994
Northrup Grumman Corp. 200 13,225
Raytheon Co. - Class B 1,000 19,938
United Technologies Corp. 2,000 114,625
469,137
AIR TRANSPORTATION - 0.3%
AMR Corp. # 725 19,303
Delta Air Lines, Inc. 685 35,748
Frontier Airlines # 1,990 28,358
Southwest Airlines 3,962 76,021
USAir Group # 350 13,956
173,386
ALUMINUM - 0.2%
Aluminum Company of America 5,280 153,120
AUTO & TRUCK - 0.8%
Delphi Auto Systems 1,210 17,772
Ford Motor Co. 4,900 210,394
General Motors Corp. 2,600 150,800
Genuine Parts Co. 5,400 110,700
Paccar, Inc. 888 35,256
TRW, Inc. 620 26,893
Visteon Corp. # 641 7,937
559,752
BANKING - 1.0%
Washington Mutual Savings Bank 2,303 67,651
Wells Fargo Co. 15,900 628,050
695,701
BEVERAGE -- ALCOHOLIC - 0.6%
Adolf Coors Company Class B 2,800 170,450
Anheuser-Busch Cos., Inc. 2,900 217,500
387,950
<PAGE>
BEVERAGE -- SOFT DRINK - 1.1%
Coca-Cola Co. 7,500 430,313
Pepsico, Inc. 6,500 286,406
716,719
BUILDING MATERIALS - 0.1%
Masco Corp. 1,530 27,731
Vulcan Materials Co. 590 25,186
52,917
CAPITAL GOODS - 0.1%
Ingersoll-Rand 870 34,963
CHEMICAL -- DIVERSIFIED - 0.6%
Air Products & Chemicals, Inc. 1,180 36,432
Dow Chemical Co. 3,630 109,808
E.I. du Pont de Nemours & Co. 3,980 173,876
Praxair, Inc. 840 31,710
Rohm & Haas Co. 1,185 41,475
393,301
CHEMICAL -- SPECIALTY - 0.0%
Eastman Chemical Co. 500 23,937
COMMERCIAL SERVICES - 0.1%
Cendant Corp. # 6,500 91,000
COMPUTERS & PERIPHERALS - 5.5%
Apple Computer # 1,400 73,325
Compaq Computer Corp. 5,280 133,980
Convergys Corp. # 760 38,950
Dell Computer Corp. # 13,700 676,437
EMC Corp./Mass # 10,400 785,850
Gateway 2000, Inc. # 1,500 87,000
IBM Corp. 6,740 735,503
Micron Technology, Inc. # 3,030 274,215
QRS Corporation Delaware # 320 7,680
Seagate Technology, Inc. # 1,020 57,056
Sun Microsystems # 8,670 788,428
3,658,424
COMPUTER SOFTWARE & SERVICES - 6.0%
America Online, Inc. # 5,300 278,581
BMC Software, Inc. # 1,100 40,064
Ceridian Co. # 840 20,160
Check Point Software Technologies LTD # 600 127,463
Computer Associates International, Inc. 2,390 121,890
<PAGE>
Computer Sciences Corp. # 950 71,131
Compuware Corp. # 820 8,508
Covad Communications Corp. # 4,545 73,288
Electronic Data System Corp. 1,760 73,590
Microsoft Corp. # 19,580 1,565,176
Oracle Corp. # 14,960 1,257,341
Sapient Corporation # 250 26,734
Seibel Systems, Inc. # 1,450 237,188
Unisys Corp. # 1,270 18,574
Veritas Software Co. # 1,730 195,490
4,115,178
CONSUMER NON-DURABLE - 1.6%
Colgate Palmolive 1,600 94,700
Fortune Brands, Inc. 7,800 181,350
Gillette Co. 3,400 115,812
Haggar Corp. 11,500 135,125
Procter & Gamble Co. 7,000 388,938
Sealed Air Corp. # 460 24,207
Tupperware Corp. 4,200 92,925
1,033,057
COSMETICS - 0.2%
Kimberly Clark 2,700 154,744
DATA PROCESSING - 0.6%
Automatic Data Processing, Inc. 3,430 183,719
First Data Corp. 2,170 108,636
Fiserv, Inc. # 910 39,358
I2 Technologies, Inc. # 700 73,106
404,819
DIVERSIFIED - 1.2%
Honeywell International, Inc. 3,402 114,392
Minnesota Mining & Manufacturing Co. 1,100 92,950
Norfolk Southern Corp. 1,830 27,336
PPG Industries, Inc. 830 36,779
Tyco International 9,240 437,168
708,625
DRUG - 7.1%
Abbott Labs 6,620 290,039
Bristol Myers Squibb 7,760 443,290
Eli Lilly & Co. 4,570 452,430
Merck & Co., Inc. 11,640 883,912
Pfizer, Inc. 36,297 1,715,033
<PAGE>
Pharmacia Corp. 7,180 368,424
Schering Plough Corp. 10,130 510,299
4,663,427
DRUGSTORE - 0.2%
Walgreen Co. 3,600 114,750
ELECTRICAL EQUIPMENT - 4.2%
General Electric Corp. 53,322 2,712,757
ELECTRONIC COMPONENT SEMICONDUCTORS - 6.0%
Advanced Micro Devices, Inc. # 2,130 164,809
Analog Devices # 1,550 118,672
Applied Materials, Inc. # 3,950 358,215
Intel 13,800 1,844,887
KLA -Tencor Corp. # 600 35,166
Linear Tech Corp. 850 54,294
LSI Logic Corp. # 900 49,387
Maxim Integrated Products, Inc. # 1,950 133,057
Motorola, Inc. 9,779 286,574
Solectron Corp. # 2,500 104,844
STMicroelectronics NV 3,120 199,485
Texas Instruments, Inc. 5,000 343,125
Xilinx Inc. # 2,910 240,257
3,932,772
ELECTRONIC COMPONENTS - 0.2%
Emerson Electric 2,624 158,752
ELECTRIC UTILITY - 0.7%
AES Corp. # 4,920 219,555
American Power # 960 39,240
Duke Power Co. 2,370 135,386
Teco Energy, Inc. 2,930 59,149
453,330
ELECTRONICS - 0.2%
Altera Corporation # 1,200 122,325
Rockwell International Corp. 840 26,512
148,837
FINANCE - 6.1%
Bank One Corp. 4,326 116,261
BankAmerica Corp. 10,214 451,970
Chase Manhattan Corp. 5,850 273,853
<PAGE>
First Union Corp. 4,968 125,752
FleetBoston Financial Corp. 4,808 167,678
Federal National Mortgage Association 6,600 346,500
Federal Home Loan Mortgage Corp. 9,300 376,069
Lehman Brothers Holdings, Inc. 1,500 141,938
Mellon Bank Corp. 4,800 175,800
Merrill Lynch & Co. 800 92,200
Metris Cos., Inc. 15,000 382,500
Morgan Stanley Dean Witter & Co. 5,200 439,400
PNC Bank Corp. 3,100 146,863
Providian Financial Corp. 7,150 643,500
Ryder Systems, Inc. 310 5,948
SLM Holding Corp. 4,000 148,500
4,034,732
FINANCIAL SERVICES - 3.3%
American Express Co. 3,600 187,200
Associates First Capital 10,400 233,350
Avery Dennison Corp. 920 61,640
Capital One Financial Corp. 20,600 921,850
Citigroup, Inc. 11,995 739,192
Concord EFS, Inc. # 690 17,854
H&R Block, Inc. 1,020 32,895
2,193,981
FOOD -- DIVERSIFIED - 1.2%
General Mills 4,800 184,200
Hershey Food Corp. 4,200 204,488
H.J. Heinz Co. 3,400 149,175
Safeway, Inc. # 3,300 147,056
Sara Lee Corp. 6,400 123,600
808,519
FOREST PRODUCTS - 0.1%
Georgia Pacific Corp. 1,130 29,874
Weyerhauser Co. 1,120 48,720
Willamette Industries, Inc. 640 17,600
96,194
GOLD/SILVER MINING - 0.1%
Barrick Gold Corp. 2,090 38,142
HEALTH - 1.6%
American Home Products 6,580 391,099
Johnson & Johnson 6,620 661,172
1,052,271
<PAGE>
INSTRUMENTS -- SCIENTIFIC - 0.2%
PE Biosystems Group 1,630 105,644
INSURANCE -- MULTILINE - 2.5%
Allstate 6,700 153,263
American International Group 10,543 1,243,415
Metlife, Inc. # 4,000 83,500
PMI Group 4,300 205,863
1,686,041
INTERNET CONTENT - 0.0%
Buy.com # 700 3,522
INTERNET SERVICE - 0.5%
Yahoo, Inc. # 2,600 322,238
INTERNET SOFTWARE - 0.4%
Ariba, Inc. # 550 53,900
BEA Systems, Inc. # 1,250 61,719
Broadvision, Inc. # 1,050 53,419
Vignette Corp. # 2,050 106,664
275,702
MACHINERY - 0.4%
Caterpillar, Inc. 1,282 43,508
Deere & Co. 717 26,619
Dover Corp. 1,960 79,993
Halliburton Co. 1,100 52,044
W. W. Grainger 1,778 55,229
257,393
MANUFACTURING - 0.0%
Millipore 480 36,150
MARKETING SERVICES - 0.2%
Omnicom Group, Inc. 1,205 107,170
MATERIALS & SERVICES - 0.3%
Ecolab, Inc. 800 31,150
Illinois Tool Works, Inc. 940 53,228
Pall Corp. 1,040 19,565
Sherwin-Williams Co. 4,270 92,606
196,549
<PAGE>
MEDICAL HMO - 0.0%
Wellpoint Health Networks # 440 31,790
MEDICAL PRODUCTS - 1.2%
Amgen, Inc. # 3,710 260,396
Guidant Corp. # 2,620 129,526
Human Genome # 1,140 151,976
MedImmune, Inc. # 2,850 210,544
Millennium Pharmaceutical # 660 73,838
826,280
MEDICAL SERVICES - 0.3%
Columbia/HCA Healthcare Corp. 2,880 88,200
Health Management # 3,980 51,989
IMS Health, Inc. 1,080 17,888
Tenet Healthcare Corp. # 2,250 61,875
219,952
MEDICAL SUPPLIES - 0.7%
Cardinal Health, Inc 1,200 88,725
Medtronic, Inc. 7,370 365,276
454,001
MULTIMEDIA - 1.8%
Comcast Corp. - Class A 3,900 157,950
Gannett, Inc. 2,200 132,000
Seagrams Co., Ltd. 2,000 118,000
Time Warner, Inc. 3,700 280,044
Viacom, Inc. - Class B # 4,953 337,423
Walt Disney Co. 3,700 145,225
1,170,642
NATURAL GAS DISTRIBUTOR - 0.4%
MCN Corp. 6,125 134,367
Williams Cos., Inc. 2,600 106,925
241,292
NETWORKING PRODUCTS - 3.6%
3COM Corp. # 1,100 63,319
Cisco Systems, Inc. # 33,810 2,149,048
Network Appliance # 1,930 155,244
2,367,611
OFFICE AUTOMATION & EQUIPMENT - 1.1%
Hewlett Packard 4,880 607,255
<PAGE>
Pitney Bowes, Inc. 1,325 52,586
Xerox Corp. 2,180 43,328
703,169
OIL/GAS -- DOMESTIC - 0.7%
Baker Hughes 1,540 50,724
Burlington Resources 1,000 38,063
Enron Corp. 3,900 258,863
Noble Affiliates, Inc. 2,100 78,881
USX Marathon Group 1,800 46,013
472,544
OIL/GAS -- INTERNATIONAL - 2.7%
BP Amoco PLC Sponsored ADR 1,148 65,006
Chevron Corp. 3,200 272,200
Exxon Corp. 18,362 1,448,303
Transocean Sedco 619 32,846
1,818,355
OILFIELD SERVICES/EQUIPMENT - 0.9%
Coastal Corp. 1,900 115,663
Carbo Ceramics, Inc. # 2,600 91,325
Kerr-McGee Corp. 1,600 93,700
Schlumberger Ltd. 2,300 170,200
Union Pacific Resources Group, Inc. 5,600 124,250
595,138
OIL & NATURAL GAS - 0.3%
Apache Corp. 1,100 64,763
Amerada Hess 500 31,000
Ocean Energy, Inc. # 6,860 96,469
Sante Fe International Corp. 1,300 44,931
237,163
PAPER & FOREST PRODUCTS - 0.1%
International Paper 2,486 74,413
Mead Corp. 840 21,263
95,676
PETROLEUM -- INTEGRATED - 1.6%
Conoco, Inc. - Class B 4,500 110,250
Occidental Petroleum Corp. 3,600 76,050
Phillips Petroleum 1,100 56,100
Royal Dutch Petroleum 10,400 640,250
Texaco 3,100 167,206
1,049,856
<PAGE>
PUBLISHING - 0.1%
The Reader's Digest Association, Inc. 4,900 194,163
Tribune Co. 1,400 48,912
243,075
RAILROAD TRANSPORTATION - 0.2%
Burlington Northern Santa Fe 2,005 46,115
Kansas City Southern Industries, Inc. 540 47,689
Union Pacific Corp. 765 28,448
122,252
RESTAURANT - 0.7%
McDonalds Corp. 8,100 265,275
Wendy's International, Inc. 11,500 206,281
471,556
RETAIL GROCERY - 0.2%
Albertson's, Inc. 3,700 123,488
Kroger Co. # 4,100 89,944
213,432
RETAIL STORE - 2.4%
Action Performance # 23,400 163,800
Best Buy Co. # 1,700 107,313
Gap, Inc. 2,800 86,625
Home Depot, Inc. 6,500 321,344
Lowe's Companies 2,300 94,300
Target Stores 1,600 91,100
WalMart Stores, Inc. 12,800 721,600
1,586,082
SEMICONDUCTOR - 0.0%
National Semiconductor Corp. # 550 31,900
SERVICES - 0.1%
Paychex, Inc. 2,182 91,371
TELECOMMUNICATION EQUIPMENT - 3.9%
ADC Telecom, Inc. # 1,150 96,456
Comverse Technology, Inc. # 600 55,838
Corning, Inc. 1,240 333,018
JDS Uniphase Corp. # 1,670 200,296
Nokia Corp. - ADR - Class A 3,050 152,309
Nortel Networks 14,480 1,021,745
P-Com, Inc. # 8,760 49,823
<PAGE>
QUALCOMM, Inc. # 3,700 221,769
Sprint Corp. PCS Group # 7,355 436,703
2,567,957
TELECOMMUNICATION SERVICES - 8.7%
Alltel Corp. 1,825 113,150
AT&T Corp. 13,765 438,759
Bell Atlantic Corp. 8,785 446,388
BellSouth Corp. 10,980 466,650
Global Crossing LTD # 24,219 638,776
Global Telesystems, Inc. # 8,655 104,401
GTE Corp. 5,320 328,178
Lucent Technologies, Inc. 8,570 495,989
Nextel Communications # 4,660 284,551
SBC Communications 17,674 808,586
Sprint Corp. FON Group 5,275 279,905
Telefonaktiebolaget LM Ericsson ADR 4,000 79,750
Tellabs, Inc. # 1,590 108,915
Winstar Communications 3,755 127,201
Worldcom, Inc. # 17,622 809,511
U.S. West, Inc. 2,665 229,190
5,759,900
TOBACCO - 0.7%
Philip Morris Cos. 12,500 326,563
UST, Inc. 9,200 135,125
461,688
TOYS - 0.8%
JAKKS Pacific Co. # 8,900 131,275
Toys "R" Us, Inc. # 26,900 401,819
533,094
TRANSPORTATION - 0.1%
FDX Corp. # 1,000 39,125
TRAVEL SERVICES - 0.2%
Carnival Corp. 4,800 93,300
Sabre Holdings Corp. # 523 14,709
108,009
TRUCKING/TRANSPORTATION LEASING - 0.0%
CSX Corp. 1,017 21,611
<PAGE>
WASTE DISPOSAL NON HAZARDOUS - 0.1%
Waste Management, Inc. 3,670 69,271
WATER UTILITY - 0.2%
Azurix Corp. # 16,095 124,736
TOTAL COMMON STOCKS
(Cost $46,283,624 ) 59,991,222
U.S. GOVERNMENT OBLIGATIONS - 0.9%
U.S. Treasury Bills
** 5.64% 01/04/01 6,000 5,814
* 5.79% 08/31/00 600,000 594,375
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $600,201 ) 600,189
REPURCHASE AGREEMENT - 9.0%
Smith Barney Securities LLC, 7.19%, 07/03/00,
(Collateralized by $6,133,259 various
commercial papers, 5.47 - 6.60%, 07/03/00 -
09/25/00, market value - $6,094,504) 5,975,000 5,975,000
TOTAL REPURCHASE AGREEMENT
(Cost $5,975,000 ) 5,975,000
TOTAL INVESTMENTS - 100.0%
(Cost $52,858,825 ) $66,566,411
CONTRACTS VALUE
FUTURES CONTRACTS
Long, S&P 500 Futures, face amount $5,227,900 14 5,138,350
expiring September 2000
TOTAL FUTURES CONTRACTS $5,138,350
<PAGE>
TRUSTEE DEFERRED COMPENSATION***
Flex-funds Highlands Growth Fund 594 $13,504
Flex-funds Muirfield Fund 1,073 6,032
Flex-funds Total Return Utilities Fund 250 5,509
Meeder Advisor International Equity Fund 478 8,110
TOTAL TRUSTEE DEFERRED COMPENSATION
(Cost $31,717 ) $33,155
ADR: American Depositary Receipt
# Represents non-income producing securities.
* Pledged as collateral on futures contracts.
** Pledged as collateral on Letter of Credit.
*** Assets of affiliates to the Growth Stock Portfolio held for the
benefit of the Portfolio's Trustees in connection with the Trustee
Deferred Compensation Plan.
See accompanying notes to financial statements.
<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)
<TABLE>
<CAPTION>
TACTICAL ASSET UTILITY CORE
ALLOCATION GROWTH EQUITY
FUND FUND FUND
Assets
<S> <C> <C> <C>
Investments in corresponding portfolio, at value $17,513,208 $5,201,357 $15,092,431
Receivable for capital stock issued 0 0 18,477
Receivable from investment advisor 1,809 19,946 7,771
Unamortized organization costs 0 0 4,158
Other assets 29,881 6,606 15,521
Total Assets 17,544,898 5,227,909 15,138,358
Liabilities
Payable for capital stock redeemed 190,959 52,158 33,721
Dividends payable 227,827 4,618 0
Dealer commissions payable 15,289 15,932 67,603
Accrued distribution plan and shareholder service fee 48,202 8,762 26,694
Accrued transfer agent and administrative fees 3,405 837 1,831
Other accrued liabilities 25,867 7,838 5,345
Total Liabilities 511,549 90,145 135,194
Total Net Assets 17,033,349 5,137,764 15,003,164
Net Assets
Capital 19,054,900 4,104,583 12,736,027
Accumulated undistributed (distributions in excess of 257,746 (5,712) (30,197)
net investment income
Accumulated undistributed net realized gain (loss) (1,176,915) 769,739 505,597
from investments
Net unrealized appreciation (depreciation) of investments (1,102,382) 269,154 1,791,737
Total Net Assets $17,033,349 $5,137,764 $15,003,164
Net Assets
Class A Shares $579,266 $2,442,227 $8,563,054
Class C Shares 16,454,083 2,695,537 6,440,110
$17,033,349 $5,137,764 $15,003,164
Capital Stock Outstanding
(indefinite number of shares authorized, $0.10 par value)
Class A Shares 53,665 118,365 472,586
Class C Shares 1,339,752 132,427 356,701
1,393,417 250,792 829,287
Net Asset Value - Redemption Price Per Share
Class A Shares $10.79 $20.63 $18.12
Class C Shares* $12.28 $20.35 $18.05
Maximum Sales Charge - Class A Shares 5.75% 5.75% 5.75%
Maximum Offering Price Per Share - Class A Shares $11.45 $21.89 $19.23
<FN>
* Redemption price varies based upon holding period.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
TACTICAL ASSET UTILITY CORE
ALLOCATION GROWTH EQUITY
FUND FUND FUND
Net Investment Income from Corresponding Portfolio
<S> <C> <C> <C>
Interest $388,416 $3,223 $32,576
Dividends 24,181 67,088 66,915
Expenses net of waivers and/or reimbursements (90,300) (31,233) (77,398)
Total Net Investment Income from Corresponding Portfolio 322,297 39,078 22,093
Fund Expenses
Administrative 5,271 1,169 3,434
Transfer agent 12,846 4,034 6,868
Distribution plan - Class A 841 2,801 9,583
Distribution plan - Class C 76,536 9,138 22,758
Shareholder service - Class A 841 2,801 9,583
Shareholder service - Class C 25,512 3,046 7,586
Audit 1,008 1,008 1,008
Legal 1,142 1,143 1,143
Printing 3,234 1,496 3,077
Amortization of organizational costs 3,631 2,657 1,008
Postage 1,481 1,062 1,410
Registration and filing 963 13,052 4,477
Insurance 68 1,457 66
Other 1,817 1,259 1,159
Total Expenses 135,191 46,123 73,160
Expenses reimbursed by investment advisor (2,732) (30,336) (22,723)
Net Expenses 132,459 15,787 50,437
Net Investment Income (Loss) 189,838 23,291 (28,344)
Net Realized and Unrealized Gain (Loss) from Investments
Net realized gains (losses) from futures contracts (846,802) 0 (57,093)
Net realized gains from investments 97,704 335,444 551,017
Net change in unrealized appreciation (2,005,201) (150,454) (641,642)
(depreciation) of investments
Net Gain (Loss) from Investments (2,754,299) 184,990 (147,718)
Net Increase (Decrease) in Net Assets Resulting from Operations ($2,564,461) $208,281 ($176,062)
</TABLE>
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)
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION FUND
Total Class A Class C
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C>
Net investment income (loss) $189,838 $7,243 $182,595
Net realized gain (loss) from investments and futures contracts (749,098) (31,507) (717,591)
Net change in unrealized appreciation (depreciation) of investments (2,005,201) (57,852) (1,947,349)
Net increase in net assets resulting from operations (2,564,461) (82,116) (2,482,345)
Dividends and Distributions to Shareholders from
Net investment income (290,536) (14,269) (276,267)
Net decrease in net assets resulting from dividends and distributions (290,536) (14,269) (276,267)
Capital Transactions
Issued 2,227,098 167,495 2,059,603
Reinvested 62,330 3,384 58,946
Redeemed (5,093,361) (119,950) (4,973,411)
Net increase (decrease) in net assets resulting from capital transactions (2,803,933) 50,929 (2,854,862)
Total Increase (Decrease) in Net Assets (5,658,930) (45,456) (5,613,474)
Net Assets - Beginning of Period 22,692,279 624,722 22,067,557
Net Assets - End of Period $17,033,349 $579,266 $16,454,083
Share Transactions
Issued 165,100 13,530 151,570
Reinvested 4,321 264 4,057
Redeemed (385,882) (10,097) (375,785)
Change in shares (216,461) 3,697 (220,158)
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
TACTICAL ASSET ALLOCATION FUND
Total Class A Class C
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C>
Net investment income (loss) $83,368 $1,993 $81,375
Net realized gain (loss) from investments and futures contracts 3,224,772 16,691 3,208,081
Net change in unrealized appreciation (depreciation) of investments (909,565) 29,830 (939,395)
Net increase in net assets resulting from operations 2,398,575 48,514 2,350,061
Dividends and Distributions to Shareholders from
Net investment income (83,332) (1,970) (81,362)
In excess of net investment income 0 0 0
Net realized gain from investments and futures contracts (3,226,017) (16,725) (3,209,292)
In excess of net realized gains (346,135) (44,435) (301,700)
Net decrease in net assets resulting from dividends and distributions (3,655,484) (63,130) (3,592,354)
Capital Transactions
Issued 12,993,531 621,513 12,372,018
Reinvested 3,646,140 63,034 3,583,106
Redeemed (7,730,764) (103,955) (7,626,809)
Net increase in net assets resulting from capital transactions 8,908,907 580,592 8,328,315
Total Increase in Net Assets 7,651,998 565,976 7,086,022
Net Assets - Beginning of Period 15,040,281 58,746 14,981,535
Net Assets - End of Period $22,692,279 $624,722 $22,067,557
Share Transactions
Issued 870,788 49,320 821,468
Reinvested 278,268 5,411 272,857
Redeemed (520,515) (8,998) (511,517)
Change in shares 628,541 45,733 582,808
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
UTILITY GROWTH FUND
Total Class A Class C
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C>
Net investment income (loss) $23,291 $13,984 $9,307
Net realized gain (loss) from investments and futures contracts 335,444 161,787 173,657
Net change in unrealized appreciation (depreciation) of investments (150,454) (69,512) (80,942)
Net increase in net assets resulting from operations 208,281 106,259 102,022
Dividends and Distributions to Shareholders from
Net investment income (27,844) (15,950) (11,894)
Net decrease in net assets resulting from dividends and distributions (27,844) (15,950) (11,894)
Capital Transactions
Issued 1,303,313 459,117 844,196
Reinvested 22,226 12,771 9,455
Redeemed (606,357) (201,718) (404,639)
Net increase (decrease) in net assets resulting from capital transactions 719,182 270,170 449,012
Total Increase (Decrease) in Net Assets 899,619 360,479 539,140
Net Assets - Beginning of Period 4,238,145 2,081,748 2,156,397
Net Assets - End of Period $5,137,764 $2,442,227 $2,695,537
Share Transactions
Issued 63,863 22,174 41,689
Reinvested 1,098 627 471
Redeemed (30,413) (9,953) (20,460)
Change in shares 34,548 12,848 21,700
</TABLE>
See accompanying notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
UTILITY GROWTH FUND
Total Class A Class C
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C>
Net investment income (loss) $44,608 $25,965 $18,643
Net realized gain (loss) from investments and futures contracts 1,032,830 476,568 556,262
Net change in unrealized appreciation (depreciation) of investments (459,097) (184,055) (275,042)
Net increase in net assets resulting from operations 618,341 318,478 299,863
Dividends and Distributions to Shareholders from
Net investment income (44,608) (25,965) (18,643)
In excess of net investment income (966) (966) 0
Net realized gain from investments and futures contracts (593,913) (213,464) (380,449)
In excess of net realized gains 0 0 0
Net decrease in net assets resulting from dividends and distributions (639,487) (240,395) (399,092)
Capital Transactions
Issued 4,161,745 727,872 3,433,873
Reinvested 625,059 226,485 398,574
Redeemed (3,376,965) (500,964) (2,876,001)
Net increase in net assets resulting from capital transactions 1,409,839 453,393 956,446
Total Increase in Net Assets 1,388,693 531,476 857,217
Net Assets - Beginning of Period 2,849,452 1,550,272 1,299,180
Net Assets - End of Period $4,238,145 $2,081,748 $2,156,397
Share Transactions
Issued 196,019 35,483 160,536
Reinvested 32,155 11,528 20,627
Redeemed (166,022) (24,885) (141,137)
Change in shares 62,152 22,126 40,026
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
CORE EQUITY FUND
Total Class A Class C
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C>
Net investment income (loss) ($28,344) ($11,613) ($16,731)
Net realized gain (loss) from investments and futures contracts 493,924 279,062 214,862
Net change in unrealized appreciation (depreciation) of investments (641,642) (352,138) (289,504)
Net increase in net assets resulting from operations (176,062) (84,689) (91,373)
Dividends and Distributions to Shareholders from
Net investment income 0 0 0
Net decrease in net assets resulting from dividends and distributions 0 0 0
Capital Transactions
Issued 5,610,571 2,778,394 2,832,177
Reinvested 0 0 0
Redeemed (3,050,490) (1,243,742) (1,806,748)
Net increase (decrease) in net assets resulting from capital transactions 2,560,081 1,534,652 1,025,429
Total Increase (Decrease) in Net Assets 2,384,019 1,449,963 934,056
Net Assets - Beginning of Period 12,619,145 7,113,091 5,506,054
Net Assets - End of Period $15,003,164 $8,563,054 $6,440,110
Share Transactions
Issued 310,232 152,758 157,474
Reinvested 0 0 0
Redeemed (171,980) (69,348) (102,632)
Change in shares 138,252 83,410 54,842
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
CORE EQUITY FUND
Total Class A Class C
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C>
Net investment income (loss) ($32,997) ($16,936) ($16,061)
Net realized gain (loss) from investments and futures contracts (56,172) 173,049 (116,877)
Net change in unrealized appreciation (depreciation) of investments 1,925,520 1,119,695 805,825
Net increase in net assets resulting from operations 1,948,695 1,275,808 672,887
Dividends and Distributions to Shareholders from
Net investment income 0 0 0
In excess of net investment income 0 0 0
Net realized gain from investments and futures contracts (100,611) (100,611) 0
In excess of net realized gains (87,247) 0 (87,247)
Net decrease in net assets resulting from dividends and distributions (187,858) (100,611) (87,247)
Capital Transactions
Issued 13,859,799 5,554,357 8,305,442
Reinvested 185,510 99,657 85,853
Redeemed (11,027,500) (5,090,750) (5,936,750)
Net increase in net assets resulting from capital transactions 3,017,809 563,264 2,454,545
Total Increase in Net Assets 4,778,646 1,738,461 3,040,185
Net Assets - Beginning of Period 7,840,499 5,374,630 2,465,869
Net Assets - End of Period $12,619,145 $7,113,091 $5,506,054
Share Transactions
Issued 822,113 333,876 488,237
Reinvested 10,559 5,668 4,891
Redeemed (653,451) (301,269) (352,182)
Change in shares 179,221 38,275 140,946
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
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
TACTICAL ASSET ALLOCATION FUND
<TABLE>
<CAPTION>
Six months Period from
ended Year ended Year ended Year ended Year ended 6/21/95* to
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
(Unaudited)
Class A Class C Class A Class C Class A Class C Class A Class C Class A** Class C Class C
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of Period $12.50 $14.15 $13.87 $15.33 $11.07 $12.25 $12.56 $13.52 $12.50 $13.26 $12.50
Income from Investment
Operations
Net investment
income (loss) 0.13 0.13 0.06 0.06 0.05 0.05 0.40 0.14 0.14 0.10 (0.02)
Net gains (losses)
on securities
(both realized
and unrealized) (1.58) (1.80) 1.80 1.99 3.07 3.38 1.78 2.26 0.55 0.57 1.84
Total from Investment
Operations (1.45) (1.67) 1.86 2.05 3.12 3.43 2.18 2.40 0.69 0.67 1.82
Less Dividends and
Distributions
From net investment
income (0.26) (0.20) (0.06) (0.06) (0.05) (0.05) (0.40) (0.14) (0.14) (0.10) 0.00
From net capital
gains 0.00 0.00 (0.87) (2.90) (0.27) (0.30) (2.93) (3.17) (0.49) (0.31) (1.06)
In excess of net
realized gains 0.00 0.00 (2.30) (0.27) 0.00 0.00 (0.34) (0.36) 0.00 0.00 0.00
Total Dividends and
Distributions (0.26) (0.20) (3.23) (3.23) (0.32) (0.35) (3.67) (3.67) (0.63) (0.41) (1.06)
Net Asset Value,
End of Period $10.79 $12.28 $12.50 $14.15 $13.87 $15.33 $11.07 $12.25 $12.56 $13.52 $13.26
Total Return (excludes
sales and redemption
charges) -11.66%(4) -11.83%(4) 15.62% 15.33% 28.38% 28.13% 17.29% 17.71% 5.51%(4) 5.07% 14.57%(4
Ratios/Supplemental Data
Net assets, end of
period ($000) $579 $16,454 $625 $22,068 $59 $14,982 $36 $14,501 $137 $13,943 $11,524
Ratio of expenses to
average net assets 1.75%(3) 2.13%(3) 1.77% 2.13% 2.00% 2.10% 2.00% 2.10% 1.73%(3) 2.00% 1.97%(3
Ratio of net investment
income (loss) to
average net assets 2.16%(3) 1.79%(3) 1.02% 0.45% 0.45% 0.39% 0.99% 0.86% 2.60%(3) 0.75% -0.29%(3
Ratio of expenses to
average net assets
before waiver of fees 2.15%(3) 2.14%(3) 3.66% 2.24% 10.38% 2.48% 6.16% 2.50% 5.23%(3) 2.40% 2.80%(3
Ratio of net investment
income (loss) to
average net assets 1.76%(3) 1.78%(3) -0.87% 0.34% -7.93% 0.01% -3.17% 0.46% -0.90%(3) 0.35% -1.12%(3
before waiver of
fees(2)
Portfolio turnover rate(1) 118.33%(4) 118.33%(4) 787.66% 787.66% 128.31% 128.31% 395.42% 395.42% 297.41%(4) 297.41% 186.13%
<FN>
(1) Represents turnover rate of corresponding portfolio.
(2) Ratio includes fees waived in corresponding portfolio.
(3) Annualized.
(4) Not annualized.
* Date of commencement of operations.
** August 1, 1996 (date of commencement of operations) to December 31, 1996.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
UTILITY GROWTH FUND
<TABLE>
<CAPTION>
Six months Year Year
ended ended ended
June 30, 2000 December 31, 1999 December 31, 1998
(Unaudited)
Class A Class C Class A Class C Class A Class C
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $19.73 $19.47 $18.59 $18.38 $17.37 $17.17
Income from Investment Operations
Net investment income 0.13 0.08 0.29 0.20 0.23 0.16
Net gains on securities
(both realized and unrealized) 0.92 0.90 3.44 3.38 1.20 1.21
Total from Investment Operations 1.05 0.98 3.73 3.58 1.43 1.37
Less Dividends and Distributions
From net investment income (0.15) (0.10) (0.29) (0.20) (0.21) (0.16)
From net capital gains 0.00 0.00 (0.01) 0.00 0.00 0.00
In excess of net realized gains 0.00 0.00 (2.29) (2.29) 0.00 0.00
Total Dividends and Distributions (0.15) (0.10) (2.59) (2.49) (0.21) (0.16)
Net Asset Value, End of Period $20.63 $20.35 $19.73 $19.47 $18.59 $18.38
Total Return (excludes sales and
redemption charges) 5.31%(4) 5.02%(4) 20.34% 19.72% 8.34% 8.08%
Ratios/Supplemental Data
Net assets, end of period ($000) $2,442 $2,696 $2,082 $2,156 $1,550 $1,299
Ratio of expenses to average net assets 1.75%(3) 2.25%(3) 1.82% 2.25% 2.00% 2.25%
Ratio of net investment income to
average net assets 1.25%(3) 0.76%(3) 1.47% 0.97% 1.20% 0.93%
Ratio of expenses to average net assets
before waiver of fees(2) 3.05%(3) 3.55%(3) 2.89% 3.37% 3.82% 4.33%
Ratio of net investment income (loss)
to average net assets -0.05%(3) -0.54%(3) 0.40% -0.15% -0.62% -1.15%
before waiver of fees(2)
Portfolio turnover rate(1) 24.56%(4) 24.56%(4) 69.20% 69.20% 51.36% 51.36%
<FN>
(1) Represents turnover rate of corresponding portfolio.
(2) Ratio includes fees waived in corresponding portfolio.
(3) Annualized.
(4) Not annualized.
* Date of commencement of operations.
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS
UTILITY GROWTH FUND
<TABLE>
<CAPTION>
Year Year Period from
ended ended July 11, 1995* to
December 31, 1997 December 31, 1996 December 31, 1995
Class A Class C Class A Class C Class A Class C
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.09 $14.91 $14.26 $14.27 $12.50 $12.50
Income from Investment Operations
Net investment income 0.22 0.19 0.29 0.26 0.12 0.10
Net gains on securities
(both realized and unrealized) 4.03 3.99 1.48 1.49 1.76 1.77
Total from Investment Operations 4.25 4.18 1.77 1.75 1.88 1.87
Less Dividends and Distributions
From net investment income (0.22) (0.19) (0.29) (0.26) (0.12) (0.10)
From net capital gains 0.00 0.00 0.00 0.00 0.00 0.00
In excess of net realized gains (1.75) (1.73) (0.65) (0.85) 0.00 0.00
Total Dividends and Distributions (1.97) (1.92) (0.94) (1.11) (0.12) (0.10)
Net Asset Value, End of Period $17.37 $17.17 $15.09 $14.91 $14.26 $14.27
Total Return (excludes sales and
redemption charges) 28.41% 28.25% 12.61% 12.45% 15.11%(4) 15.07%(4)
Ratios/Supplemental Data
Net assets, end of period ($000) $1,285 $1,283 $1,377 $1,515 $641 $782
Ratio of expenses to average net assets 2.00% 2.25% 1.75% 2.00% 1.75%(3) 2.00%(3)
Ratio of net investment income to
average net assets 1.36% 1.21% 2.03% 1.85% 2.17%(3) 1.72%(3)
Ratio of expenses to average net assets
before waiver of fees(2) 4.07% 4.56% 4.37% 4.65% 22.70%(3) 13.37%(3)
Ratio of net investment income (loss)
to average net assets -0.71% -1.10% -0.59% -0.80% -18.78%(3) -9.55%(3)
before waiver of fees(2)
Portfolio turnover rate(1) 41.22% 41.22% 50.79% 50.79% 5.06% 5.06%
<FN>
(1) Represents turnover rate of corresponding portfolio.
(2) Ratio includes fees waived in corresponding portfolio.
(3) Annualized.
(4) Not annualized.
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
CORE EQUITY FUND
<TABLE>
<CAPTION>
Six months Year Year Period from
ended ended ended July 31, 1997* to
June 30, 2000 December 31, 1999 December 31, 1998 December 31, 1997
(Unaudited)
Class A Class C Class A Class C Class A Class C Class A Class C
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $18.28 $18.24 $15.32 $15.32 $12.67 $12.66 $12.50 $12.50
Income from Investment Operations
Net investment income (loss) (0.02) (0.05) (0.04) (0.05) 0.00 (0.01) 0.01 (0.01)
Net gains (losses) on securities
(both realized and unrealized) (0.14) (0.14) 3.27 3.24 2.88 2.90 0.24 0.24
Total from Investment Operations (0.16) (0.19) 3.23 3.19 2.88 2.89 0.25 0.23
Less Dividends and Distributions
From net investment income 0.00 0.00 0.00 0.00 0.00 0.00 (0.01) 0.00
From net capital gains 0.00 0.00 (0.27) (0.27) (0.23) (0.23) (0.05) (0.05)
In excess of net realized gains 0.00 0.00 0.00 0.00 0.00 0.00 (0.02) (0.02)
Total Dividends and Distributions 0.00 0.00 (0.27) (0.27) (0.23) (0.23) (0.08) (0.07)
Net Asset Value, End of Period $18.12 $18.05 $18.28 $18.24 $15.32 $15.32 $12.67 $12.66
Total Return (excludes sales and
redemption charges) -0.88%(4) -1.04%(4) 21.16% 20.90% 22.78% 22.85% 2.00%(4) 1.88%(4)
Ratios/Supplemental Data
Net assets, end of period ($000) $8,563 $6,440 $7,113 $5,506 $5,375 $2,466 $245 $80
Ratio of expenses to average net
assets 1.75%(3) 2.00%(3) 1.77% 1.99% 1.80% 1.97% 2.00%(3) 2.25%(3)
Ratio of net investment income
(loss) to average net assets -0.30%(3) -0.55%(3) -0.23% -0.46% 0.09% -0.11% 0.10%(3) -0.13%(3)
Ratio of expenses to average net
assets before waiver of fees 1.97%(3) 2.48%(3) 2.02% 2.55% 3.13% 3.85% 9.50%(3) 16.58%(3)
Ratio of net investment income (loss)
to average net assets before -0.52%(3) -1.03%(3) -0.48% -1.02% -1.24% -1.99% -7.40%(3) -14.46%(3)
waiver of fees(2)
Portfolio turnover rate(1) 27.10%(4) 27.10%(4) 51.22% 51.22% 79.98% 79.98% 129.79% 129.79%
<FN>
(1) Represents turnover rate of corresponding portfolio.
(2) Ratio includes fees waived in corresponding portfolio.
(3) Annualized.
(4) Not annualized.
* Date of commencement of operations.
</FN>
</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>
MEEDER ADVISOR FUNDS 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 as follows: Tactical Asset Allocation Fund (formerly TAA Fund), Utility
Growth Fund (formerly BTB Fund), Core Equity Fund, International Equity Fund
(each a "Fund" and collectively the "Funds") and Institutional Fund. The
financial statements of the Institutional Fund are not in this report. Each
Fund, except International Equity Fund, invests all of its investable assets in
a corresponding open-end management investment company (each a "Portfolio" and
collectively the "Portfolios") having the same investment objective as the Fund.
Each Fund, each Portfolio into which the Fund invests and the percentage of each
Portfolio owned by the respective Fund is as follows:
PERCENTAGE OF PORTFOLIO
OWNED BY FUND AS OF JUNE
FUND PORTFOLIO 30, 2000
Tactical Asset Allocation Fund Mutual Fund Portfolio 12%
Utility Growth Fund Utilities Stock Portfolio 26%
Core Equity Fund Growth Stock Portfolio 23%
The investment objective of the International Equity Fund is to seek long-term
growth from investing primarily in equity securities of foreign issuers.
The financial statements of the Portfolios, including the Portfolios of
Investments, are included elsewhere in this report and should be read in
conjunction with the financial statements of each respective Fund. The financial
statements of the Institutional Fund are separately reported.
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
Each Fund, except International Equity Fund, values its investment in the
corresponding Portfolio at fair value. Valuation of securities held by each
Portfolio is further described at Note 2 of the Portfolios' Notes to Financial
Statements.
Securities owned by the International Equity Fund are valued at 3:00 pm Eastern
Time based on the last sales price, or, lacking any sales, at the closing bid
prices. These prices are obtained 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.
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 Funds are maintained in U.S. dollars. The value of
securities, other assets and liabilities of the International Equity 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 Funds do 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 International Equity 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
<PAGE>
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 each 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
Dividends to shareholders are recorded on the ex-dividend date. Tactical Asset
Allocation Fund and Core Equity Fund declare dividends from net investment
income on a quarterly basis. Utility Growth Fund declares dividends from net
investment income on a monthly basis. International Equity Fund declares
dividends from net investment income on an annual basis. Each 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. These differences are primarily due to
deferrals of certain losses, expiring capital loss carryforwards, differing
treatment of unrealized gains and losses of futures contracts held by the Fund's
corresponding Portfolio, 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 each of the four Funds have been
deferred and are being amortized by each Fund on a straight-line basis over a
five-year period. As of June 30, 2000, organizational costs for Tactical Asset
Allocation Fund and Utility Growth Fund have been fully amortized.
INVESTMENT INCOME & Expenses
The funds record daily their proportionate share of the Portfolios' income,
expenses, and realized and unrealized gains and losses. In addition, the Funds
accrue their 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.
Expenses of each Fund, other than expenses incurred pursuant to the Class A and
Class C distribution and shareholder services plans, are allocated to the
separate classes based on their relative net assets or other appropriate basis.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management ("MAM"), a wholly-owned subsidiary of Muirfield
Investors, Inc. ("MII"), provides each Portfolio with investment management,
research, statistical and advisory services. Under separate Investment
Subadvisory Agreements with MAM, Miller/Howard Investments, Inc., Sector Capital
Management, Inc., and Commercial Union Investment Management, Ltd. serve as
subadviser of the Utilities Stock Portfolio, the Growth Stock Portfolio and the
International Equity Fund, respectively. Sub-subadvisers, selected by Sector
Capital Management, Inc., subject to the review and approval of the Trustees of
the Growth Stock Portfolio, are responsible for the selection of individual
portfolio securities for the assets of the Portfolio assigned to them by Sector
Capital Management, Inc. For such services, the International Equity Fund pays
MAM monthly fees at the annual rate of 1.00% of the average daily net asset
value of the Fund.
Mutual Funds Service Co. ("MFSCo"), a wholly-owned subsidiary of MII, serves as
stock transfer, dividend disbursing and shareholder services agent for each
Fund. In compensation for such services, each 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 for each Fund.
MFSCo provides the Trust with certain administrative services. In compensation
for such services, each Fund pays MFSCo an annual fee equal to 0.05% of each
Fund's average daily net assets.
<PAGE>
MAM has voluntarily agreed to reimburse the Funds for the amount by which annual
expenses of each Fund including expenses allocated from its respective Portfolio
(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 RMA and MFSCo. The limitations currently in place are as follows:
ANNUAL EXPENSE
LIMITATION AS A
PERCENTAGE OF AVERAGE
FUND DAILY NET ASSETS
Tactical Asset Allocation Fund - Class A 1.75%
Tactical Asset Allocation Fund - Class C 2.15%
Utility Growth Fund - Class A 1.75%
Utility Growth Fund - Class C 2.25%
Core Equity Fund - Class A 1.75%
Core Equity Fund - Class C 2.00%
International Equity Fund 2.00%
Certain officers of the Funds and trustees of the Trust and the Portfolios are
also officers or directors of MII, MAM and MFSCo.
Pursuant to Rule 12b-1 of the Act, each Fund has adopted two Distribution Plans
(the "Plans") with Adviser Dealer Services (the "Distributor"). Under the
provisions of the Plans, each Fund pays the Distributor an annual fee, at a
maximum rate of 0.25% and 0.75% of average daily net assets of Class A shares
and Class C shares, respectively, to aid in the distribution of Fund shares.
Additionally, each Fund has adopted two Service Plans with the Distributor.
Under the provisions of the Service Plans, each Fund pays the Distributor an
annual fee, at a maximum rate of 0.25% of average daily net assets of Class A
shares and Class C shares, 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 International Equity 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>
STATEMENTS OF ASSETS & LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Mutual Utilities Growth
Fund Stock Stock
Portfolio Portfolio Portfolio
Assets
<S> <C> <C> <C>
Investments, at market value* $141,812,874 $19,097,915 $60,591,411
Repurchase agreements, at cost* 5,974,000 766,000 5,975,000
Trustee deferred compensation investments, at market value 85,100 14,920 33,155
Cash 606 2 199
Receivable for securities sold 0 0 84,470
Receivable for net variation margin on futures contracts 113,625 0 35,350
Receivable from corresponding Fund 0 0 0
Interest and dividend receivable 512,085 30,664 40,998
Prepaid expenses/other assets 0 1,734 738
Total Assets 148,498,290 19,911,235 66,761,321
Liabilities
Payable for securities purchased 0 0 99,913
Payable for Trustee Deferred Compensation Plan 85,100 14,920 33,155
Payable to investment advisor 102,820 17,652 54,558
Accrued fund accounting fees 4,708 2,240 3,841
Other accrued liabilities 13,321 7,304 21,136
Total Liabilities 205,949 42,116 212,603
Total Net Assets $148,292,341 $19,869,119 $66,548,718
Net Assets
Capital 146,897,520 18,354,599 52,805,782
Net unrealized appreciation of investments 1,394,821 1,514,520 13,742,936
Total Net Assets $148,292,341 $19,869,119 $66,548,718
<FN>
*Securities at cost $146,505,678 $18,349,395 $52,858,825
</FN>
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Mutual Utilities Growth
Fund Stock Stock
Portfolio Portfolio Portfolio
Net Investment Income
<S> <C> <C> <C>
Interest $3,036,569 $12,750 $154,316
Dividends 193,257 269,733 316,324
Total Net Investment Income 3,229,826 282,483 470,640
Expenses
Investment advisor 632,371 93,678 306,327
Accounting 26,836 11,882 21,072
Trustee 26,340 5,078 11,402
Audit 6,554 7,058 7,562
Custodian 7,864 2,570 14,767
Legal 1,143 1,143 1,143
Insurance 353 15 55
Other 3,919 3,919 3,919
Total Expenses 705,380 125,343 366,247
Investment advisor fees waived 0 0 0
Total Net Expenses 705,380 125,343 366,247
Net Investment Income (Loss) 2,524,446 157,140 104,393
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from futures contracts (6,580,650) 0 (258,025)
Net realized gain (loss) from investment transactions and 717,088 1,351,765 2,574,069
distributions of realized gains by other investment companies
Net change in unrealized appreciation (depreciation) of investments (15,910,160) (556,820) (2,946,249)
Net Gain (Loss) on Investments (21,773,722) 794,945 (630,205)
Net Increase (Decrease) in Net Assets Resulting from Operations ($19,249,276) $952,085 ($525,812)
<FN>
* Operations commenced on February 29, 2000.
</FN>
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
MUTUAL FUND PORTFOLIO UTILITIES STOCK PORTFOLIO GROWTH STOCK PORTFOLIO
Six months Six months Six months
ended Year ended Year ended Year
6/30/00 ended 6/30/00 ended 6/30/00 ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
Increase (Decrease) in Net Assets
Operations
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $2,524,446 $2,644,273 $157,140 $289,856 $104,393 $229,647
Net realized gain (loss) from investments
and futures contracts (5,863,562) 27,496,748 1,351,765 3,637,703 2,316,044 5,340,308
Net change in unrealized appreciation
(depreciation) of investments (15,910,160) (5,909,917) (556,820) (1,322,044) (2,946,249) 6,025,737
Net increase in net assets resulting from operations (19,249,276) 24,231,104 952,085 2,605,515 (525,812) 11,595,692
Transactions of Investors' Beneficial Interests
Contributions 24,570,426 67,402,736 5,508,339 11,399,891 20,298,281 105,405,498
Withdrawals (35,569,903) (53,900,433) (4,642,398) (9,173,858) (18,441,223) (102,951,461)
Net increase (decrease) in net assets resulting from
transactions of investors' beneficial interests (10,999,477) 13,502,303 865,941 2,226,033 1,857,058 2,454,037
Total Increase (Decrease) in Net Assets (30,248,753) 37,733,407 1,818,026 4,831,548 1,331,246 14,049,729
Net Assets - Beginning of Period 178,541,094 140,807,687 18,051,093 13,219,545 65,217,472 51,167,743
Net Assets - End of Period $148,292,341 $178,541,094 $19,869,119 $18,051,093 $66,548,718 $65,217,472
<FN>
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Ratios/ Supplementary Data
<TABLE>
<CAPTION>
MUTUAL FUND 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) $148,292 $178,541 $140,808 $144,533 $135,540 $122,109
Ratio of expenses to average net assets 0.85%(1) 0.86% 0.91% 0.89% 0.87% 0.95%
Ratio of net investment income to average net assets 3.06%(1) 1.69% 1.56% 2.08% 1.86% 1.26%
Portfolio turnover rate 118.33%(2) 787.66% 128.31% 395.42% 297.41% 186.13%
<FN>
(1) Annualized.
(2) Not annualized.
</FN>
</TABLE>
<TABLE>
<CAPTION>
UTILITY STOCK PORTFOLIO Six months Year Year Year Year Period from
ended ended ended ended ended 6/21/95* to
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) $19,869 $18,051 $13,220 $10,670 $7,964 $4,291
Ratio of expenses to average net assets 1.34%(1) 1.35% 1.44% 1.60% 1.61% 2.32%(1)
Ratio of net investment income to average net assets 1.67%(1) 1.94% 1.73% 1.79% 2.24% 2.09%(1)
Ratio of expenses to average net assets 1.34%(1) 1.35% 1.46% 1.65% 1.66% 2.40%(1)
before directed brokerage payments
Ratio of net investment income to average net assets 1.67%(1) 1.94% 1.71% 1.74% 2.19% 2.01%(1)
before directed brokerage payments
Portfolio turnover rate 24.56%(2) 69.20% 51.36% 41.22% 50.79% 5.06%(2)
<FN>
(1) Annualized.
(2) Not annualized.
* Date of commencement of operations.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS
Ratios/ Supplementary Data
<TABLE>
<CAPTION>
GROWTH STOCK 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) $66,549 $65,217 $51,168 $33,394 $24,414 $24,537
Ratio of expenses to average net assets 1.13%(1) 1.15% 1.25% 1.34% 1.24% 1.25%
Ratio of net investment income to average net assets 0.32%(1) 0.39% 0.77% 0.83% 2.33% 3.78%
Ratio of expenses to average net assets before 1.13%(1) 1.16% 1.26% 1.34% 1.24% 1.25%
waiver of fees and/or directed brokerage payments
Ratio of net investment income to average net assets 0.32%(1) 0.38% 0.76% 0.83% 2.33% 3.78%
before waiver of fees and/or directed brokerage payments
Portfolio turnover rate 27.10%(2) 51.22% 79.98% 129.79% 81.66% 337.57%
<FN>
(1) Annualized.
(2) Not annualized.
</FN>
</TABLE>
<PAGE>
MEEDER ADVISOR FUNDS SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 (UNAUDITED)
1. ORGANIZATION
Each Fund of the Meeder Advisor Funds Trust (f/k/a The Flex-Partners Trust) (the
"Trust") invests all of its investable assets in a corresponding open-end
management investment company (each a "Portfolio" and collectively the
"Portfolios") having the same investment objective as the Fund. Each 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. Each Declaration of Trust permits
the Trustees, who are the same for each Portfolio, to issue beneficial interests
in each Portfolio.
The investment objective of each Portfolio is as follows:
The Mutual Fund Portfolio seeks growth of capital through investment in
the shares of other mutual funds.
The Utilities Stock Portfolio seeks a high level of current income and
growth of income by investing primarily in equity securities of
domestic and foreign public utility companies; however, it will not
invest in electric utilities whose generation of power is derived from
nuclear reactors. The Portfolio also seeks capital appreciation, but
only when consistent with its primary investment objective.
The Growth Stock Portfolio seeks capital growth by investing in a
diversified portfolio of domestic common stocks with greater than
average growth characteristics selected primarily from the Standard &
Poor's 500 Composite Stock Price Index (the "S&P 500").
The financial statements of the Funds 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
Securities which are traded on stock exchanges are valued at the last sales
price as of the close of business of the New York Stock Exchange on the day of
valuation or, lacking any sales, at the closing bid prices. Securities traded
over-the-counter are valued at the most recent bid price or yield equivalent as
obtained from one or more dealers that make markets in such securities. Mutual
funds are valued at the daily redemption value as reported by the underlying
fund. The Portfolios obtain prices from independent pricing services which use
valuation techniques approved by the Board of Trustees.
Money market securities held in the Portfolios maturing more than sixty days
after the valuation date are valued at the last sales price as of the close of
business on the day of valuation, or, lacking any sales, at the most recent bid
price or yield equivalent as obtained from dealers that make markets in such
securities. When such securities are valued within sixty days to maturity, the
difference between the valuation existing on the sixty-first day before maturity
and maturity value is amortized on a straight-line basis to maturity. Securities
maturing within sixty days from their date of acquisition are valued at
amortized cost.
REPURCHASE AGREEMENTS
Each 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 Portfolios 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.
FUTURES & Options
Each Portfolio may engage in transactions in financial futures contracts and
options contracts in order to manage the risk of unanticipated changes in market
values of securities held in the portfolio, or which it intends to purchase. The
expectation is that any gain or loss on such transactions will be substantially
offset by any gain or loss on the securities in the underlying portfolio or on
those which are being considered for purchase.
<PAGE>
To the extent that the Portfolio enters into futures contracts on an index or
group of securities the Portfolio exposes itself to an indeterminate liability
and will be required to pay or receive a sum of money measured by the change in
the market value of the index. Upon entering into a futures contract the
Portfolio is required to deposit an initial margin, which is either cash or
securities in an amount equal to a certain percentage of the contract value.
Subsequently, the variation margin, which is equal to changes in the daily
settlement price or last sale price on the exchanges where they trade, is
received or paid. The Portfolios record realized gains or losses for the daily
variation margin when they are recorded as gains or losses from futures
contracts.
Call and put option contracts involve the payment of a premium for the right to
purchase or sell an individual security or index aggregate at a specified price
until the expiration of the contract. Such transactions expose the Portfolio to
the loss of the premium paid if the Portfolio does not sell or exercise the
contract prior to the expiration date. In the case of a call option, sufficient
cash or money market instruments will be segregated to complete the purchase.
Options are valued on the basis of the daily settlement price or last sale on
the exchanges where they trade and the changes in value are recorded as an
unrealized appreciation or depreciation until closed, exercised or expired.
The Portfolios may write covered call or put options for which premiums received
are recorded as liabilities and are subsequently adjusted to current market
value of the options written. When written options are closed or exercised,
premiums received are offset against the proceeds paid, and the Portfolio
records realized gains or losses for the difference. When written options
expire, the liability is eliminated, and the Portfolio records realized gains
for the entire amount of premiums received.
During the six months ended June 30, 2000, the Portfolios had the following
activity in futures contracts:
LONG CONTRACTS
NUMBER OF CONTRACTS NOTIONAL AMOUNT
Mutual Fund Portfolio:
Outstanding, beginning of year --- $---
Contracts opened 671 239,497,125
Contracts closed (626) (222,981,000)
Outstanding, end of year 45 $16,516,125
================================= ===================== ===================
Growth Stock Portfolio:
Outstanding, beginning of year 10 $3,610,500
Contracts opened 56 20,346,200
Contracts closed (52) (18,818,350)
Outstanding, end of year 14 $5,138,350
--------------------------------- --------------------- -------------------
LETTER OF CREDIT
Each 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 Portfolios' fidelity bond coverage.
INCOME TAXES
The Portfolios will be treated as a partnership for Federal income tax purposes.
As such, each investor in the Portfolios will be subject to taxation on its
share of the Portfolios' ordinary income and capital gains. It is each
Portfolio's policy to comply with the requirements of the Internal Revenue Code
applicable to it. Therefore, no Federal income tax provision is required.
SECURITIES TRANSACTIONS
The Portfolios record security transactions on the trade date. Gains and losses
realized from the sale of securities are determined on the specific
identification basis. Dividend income is recognized on the ex-dividend date, and
interest income (including amortization of premium and accretion of discount) is
recognized as earned.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
Meeder Asset Management ("MAM"), a wholly-owned subsidiary of Muirfield
Investors, Inc. ("MII"), provides each Portfolio with investment management,
research, statistical and advisory services. Under separate Investment
Subadvisory Agreements with MAM, Miller/Howard Investments, Inc. and Sector
Capital Management, Inc. serve as subadvisor of the Utilities Stock Portfolio
and Growth Stock Portfolio, respectively. Sub-subadvisers, selected by Sector
Capital Management, Inc., subject to the review and approval of the Trustees of
the Growth Stock Portfolio, are responsible for the selection of individual
portfolio securities for the assets of the Portfolio assigned to them by Sector
Capital Management, Inc.
<PAGE>
For such services the Portfolios pay monthly fees based upon the average daily
value of each Portfolio's net assets at the following annual rate: 1.00% of
average daily net assets up to $50 million, 0.75% of average daily net assets
exceeding $50 million up to $100 million and 0.60% of average daily net assets
exceeding $100 million. As subadviser to the Utilities Stock Portfolio,
Miller/Howard Investments, Inc. is paid 0.00% of the 1.00% of average daily net
assets up to $10 million, 0.40% of the 1.00% of average daily net assets
exceeding $10 million up to $50 million, 0.40% of the 0.75% of average daily net
assets net assets exceeding $50 million up to $60 million, 0.30% of the 0.75% of
average daily net assets exceeding $60 million up to $100 million and 0.25% of
the 0.60% of average daily net assets exceeding $100 million. As subadviser to
the Growth Stock Portfolio, Sector Capital Management, Inc. is paid 0.30% of the
1.00% of average daily net assets up to $25 million, 0.70% of the 1.00% of
average daily net assets exceeding $25 million up to $50 million, 0.40% of the
0.75% of average daily net assets exceeding $50 million up to $100 million and
0.35% of the 0.60% of average daily net assets exceeding $100 million. Sector
Capital Management, Inc. pays all sub-subadvisers 0.25% on all average net
assets.
Mutual Funds Service Co. ("MFSCo"), a wholly-owned subsidiary of MII, serves as
accounting services agent for each Portfolio. In compensation for such services,
each 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. $7,500.
Certain officers and trustees of the Portfolios are also officers or directors
of MII, MAM and MFSCo.
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 Portfolios were as follows:
PORTFOLIO PURCHASES SALES
Mutual Fund Portfolio $114,612,362 $219,613,844
Utilities Stock Portfolio 4,669,173 4,460,736
Growth Stock Portfolio 16,143,218 16,417,060
As of June 30, 2000, the aggregate cost basis of investments and unrealized
appreciation (depreciation) for Federal income tax purposes was as follows:
<TABLE>
<CAPTION>
PORTFOLIO COST BASIS OF UNREALIZED UNREALIZED NET
INVESTMENTS APPRECIATION DEPRECIATION UNREALIZED
APPRECIATION
<S> <C> <C> <C> <C>
Mutual Fund Portfolio $147,290,745 $1,288,002 ($678,248) $609,754
Utilities Stock Portfolio 18,525,515 2,631,635 (1,293,235) 1,338,400
Growth Stock Portfolio 53,084,239 17,778,144 (4,260,622) 13,517,522
</TABLE>
<PAGE>
MANAGER AND INVESTMENT ADVISOR
Meeder Asset Management
6000 Memorial Drive
P.O. Box 7177
Dublin, Ohio 43017
SUBADVISOR/THE UTILITIES STOCK PORTFOLIO
Miller/Howard Investments, Inc.
141 Upper Byrdcliffe Road, P.O. Box 549
Woodstock, New York 12498
SUBADVISOR/THE GROWTH STOCK PORTFOLIO
Sector Capital Management L.L.C.
5350 Poplar Avenue, Suite 490
Memphis, Tennesse 38119
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
800-494-3539
Distributed by Adviser Dealer Services, Inc.
