<PAGE>
JOHNSON MUTUAL FUNDS
- -------------------------------------------------------------------------------
ANNUAL REPORT DATED DECEMBER 31, 1995
- -------------------------------------------------------------------------------
/ / JOHNSON GROWTH FUND
/ / JOHNSON OPPORTUNITY FUND
/ / JOHNSON FIXED INCOME FUND
/ / JOHNSON MUNICIPAL INCOME FUND
---------------------------------
INVESTMENT ADVISER:
JOHNSON INVESTMENT COUNSEL, INC.
5556 CHEVIOT ROAD
CINCINNATI, OHIO 45247
<PAGE>
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TABLE OF CONTENTS DECEMBER 31, 1995
- -------------------------------------------------------------------------------
Our Message to You. . . . . . . . . . . . . . . . . . . . . . . . 1
PERFORMANCE REVIEW AND MANAGEMENT DISCUSSION
Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . 2
Opportunity Fund. . . . . . . . . . . . . . . . . . . . . . . 3
Fixed Income Fund . . . . . . . . . . . . . . . . . . . . . . 4
Municipal Income Fund . . . . . . . . . . . . . . . . . . . . 5
PORTFOLIO OF INVESTMENTS
Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . 6 - 8
Opportunity Fund. . . . . . . . . . . . . . . . . . . . . . . 9 - 11
Fixed Income Fund . . . . . . . . . . . . . . . . . . . . . . 12 - 14
Municipal Income Fund . . . . . . . . . . . . . . . . . . . . 15 - 17
Statement of Assets and Liabilities . . . . . . . . . . . . . . . 18
Statement of Operations . . . . . . . . . . . . . . . . . . . . . 19
Statement of Changes in Net Assets
Stock Funds . . . . . . . . . . . . . . . . . . . . . . . . . 20
Bond Funds. . . . . . . . . . . . . . . . . . . . . . . . . . 21
FINANCIAL HIGHLIGHTS
Stock Funds . . . . . . . . . . . . . . . . . . . . . . . . . 22
Bond Funds. . . . . . . . . . . . . . . . . . . . . . . . . . 23
Notes to the Financial Statements . . . . . . . . . . . . . . . . 24 - 26
Independent Auditor's Report. . . . . . . . . . . . . . . . . . . 27
Custodian, Transfer Agent, and Auditor. . . . . . . . . . . . . . 28
Trustees and Officers . . . . . . . . . . . . . . . . . . . . . . 29
<PAGE>
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OUR MESSAGE TO YOU
- -------------------------------------------------------------------------------
FEBRUARY 22, 1996
DEAR SHAREHOLDER:
CALENDAR YEAR 1995 WAS AN EXTRAORDINARY PERIOD FOR INVESTORS IN THE U.S. STOCK
AND BOND MARKETS. THE RISE IN STOCK PRICES WAS THE FOURTH BEST CALENDAR YEAR
SINCE WORLD WAR II AND THE THIRD BEST YEAR FOR BONDS. THE RISE WAS FUELED BY
FALLING INTEREST RATES, RISING CORPORATE PROFITS, AND A NEW POLITICAL ATMOSPHERE
IN WASHINGTON.
THIS POSITIVE PERFORMANCE IS REFLECTED IN THE GROWTH FUND WHICH RETURNED 31.6%
FOR 1995, AND THE OPPORTUNITY FUND WHICH RETURNED 25.3%, BOTH OF WHICH ARE
ILLUSTRATED ON PAGE 22 OF THIS REPORT.
FALLING INTEREST RATES PUSHED BOND PRICES UPWARD THROUGHOUT 1995, AS REFLECTED
IN THE POSITIVE PERFORMANCE OF THE JOHNSON BOND FUNDS. THE FIXED INCOME FUND
RETURNED 17.7% AND THE MUNICIPAL INCOME FUND RETURNED 10.9%.
1995 MARKED THE THIRTIETH YEAR THAT JOHNSON INVESTMENT COUNSEL, INC., THE FUNDS'
ADVISER, HAS BEEN IN BUSINESS. THANKS AGAIN TO THE MANY SHAREHOLDERS AND
CLIENTS WHO HAVE ALLOWED US TO SERVE THEM OVER THE YEARS. WE APPRECIATE YOUR
CONTINUED CONFIDENCE IN OUR FIRM AND IN OUR ABILITY TO PROVIDE A QUALITY
APPROACH TO LONG-TERM INVESTING.
AS ALWAYS, PLEASE CALL IF YOU HAVE ANY QUESTIONS OR COMMENTS ABOUT THE ENCLOSED
REPORT.
SINCERELY,
TIMOTHY E. JOHNSON, PRESIDENT
1
<PAGE>
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GROWTH FUND, PERFORMANCE REVIEW DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH S&P
FUND 500 INDEX
------- ---------
<S> <C> <C>
1/4/93 $10,000 $10,000
3/31/93 $10,240 $10,438
6/30/93 $10,240 $10,488
9/30/93 $10,166 $10,759
12/31/93 $10,597 $11,009
3/31/94 $10,246 $10,591
6/30/94 $10,009 $10,835
9/30/94 $10,233 $11,155
12/31/94 $10,150 $11,152
3/31/95 $10,979 $12,233
6/30/95 $11,825 $13,400
9/30/95 $12,488 $14,465
12/31/95 $13,359 $15,336
</TABLE>
* Inception of the Growth Fund was January 4, 1993. The data represented herein
and below represents past performance and is not a guarantee of future
performance. The value of your shares may fluctuate and be worth more or less
than their original cost at the time of redemption.
For periods ending December 31, 1995:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
--------------------- ------------
1/4/93- 1/4/93- (b)
1 Year 1 Year 12/31/95 12/31/95
------ ------ -------- --------
<S> <C> <C> <C> <C>
Growth Fund 31.61% 31.61% 10.17% 33.59%
S&P 500 Index 37.58% 37.58% 15.38% 53.36%
</TABLE>
(a) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends (income) and
capital gains (profits from the sale of a stock).
(b) Inception of the Growth Fund was 1/4/93.
ADVISER'S COMMENTS ON 1995 PERFORMANCE OF THE GROWTH FUND:
The return on the Growth Fund for 1995 was 31.6%, as compared to the Standard &
Poors 500 Index return of 37.6%. The Growth Fund returned less than this Index,
as did most stock mutual funds.
Two factors impacted the returns for the Growth Fund and all mutual funds in
general. One is the necessary presence of money market balances (cash) to
provide liquidity to shareholders. The money market balances are particularly
dilutive to returns in years such as 1995 when stocks have much higher returns
than money market instruments. The second factor is fund expenses and/or fees,
which all funds incur annually to operate the fund. The S&P 500 Index does not
have any expenses or fees deducted from its returns. As a result, the S&P 500
Index was a difficult benchmark for stock mutual funds to beat in 1995.
The Growth Fund is predominantly invested in quality growth stocks. As concerns
about slow growth and possible economic recession increase, the opportunity
improves for quality growth stocks to perform better than average. Therefore,
we are looking forward to continued attractive returns in 1996.
GROWTH FUND OBJECTIVE: LONG-TERM CAPITAL GROWTH
2
<PAGE>
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OPPORTUNITY FUND, PERFORMANCE REVIEW DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPPORTUNITY S&P
FUND MID-CAP INDEX
----------- --------------
<S> <C> <C>
5/16/94 $10,000 $10,000
6/30/94 $9,980 $10,011
9/30/94 $10,393 $10,688
12/31/94 $10,499 $10,411
3/31/95 $11,094 $11,268
6/30/95 $12,291 $12,253
9/29/95 $12,880 $13,447
12/31/95 $13,152 $13,633
</TABLE>
* Inception of the Opportunity Fund was May 16, 1994. The data represented
herein and below represents past performance and is not a guarantee of future
performance. The value of your shares may fluctuate and be worth more or less
than their original cost at the time of redemption.
For periods ending December 31, 1995:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
--------------------- ------------
5/16/94- 5/16/94- (b)
1 Year 1 Year 12/31/95 12/31/95
------ ------ -------- --------
<S> <C> <C> <C> <C>
Opportunity Fund 25.27% 25.27% 18.10% 31.52%
S&P MidCap Index 30.94% 30.94% 20.68% 36.33%
</TABLE>
(a) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends (income) and
capital gains (profits from the sale of a stock).
(b) Inception of the Opportunity Fund was 5/16/94.
ADVISER'S COMMENTS ON 1995 PERFORMANCE OF THE OPPORTUNITY FUND:
The stocks of medium-sized companies (mid-cap) did not perform as well as those
of larger companies as evidenced by the standard & Poors Midcap Index lagging
behind the return of the broader S&P 500 Index. The Opportunity Fund returned
25.3% in 1995 as compared to the Standard & Poors Midcap Index return of 30.9%.
As with the Growth Fund, cash balances and expenses account for most of the
difference between the return of the Fund and the Index.
The stocks of medium-sized companies have experienced returns that are less than
those of larger companies for the past two calendar years. Many market analysts
are of the opinion that this trend is likely to soon reverse in favor of the
mid-cap stocks, a trend that would clearly benefit the Opportunity Fund. There
generally exists more opportunity for earnings growth in smaller companies. Over
time, that higher growth should translate into higher return. Therefore, we
remain committed to managing the Opportunity Fund in a way that emphasizes
growth in a well diversified portfolio of mid-cap stocks.
OPPORTUNITY FUND OBJECTIVE: LONG-TERM CAPITAL APPRECIATION
3
<PAGE>
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FIXED INCOME FUND, PERFORMANCE REVIEW DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIXED LEHMAN
INCOME INTERMEDIATE G/C
FUND INDEX
------- ----------------
<S> <C> <C>
1/4/93 $10,000 $10,000
3/31/93 $10,413 $10,353
6/30/93 $10,694 $10,576
9/30/93 $11,060 $10,815
12/31/93 $10,954 $10,833
3/31/94 $10,580 $10,613
6/30/94 $10,405 $10,549
9/30/94 $10,419 $10,638
12/31/94 $10,392 $10,624
3/31/95 $10,926 $11,090
6/30/95 $11,586 $11,644
9/30/95 $11,774 $11,836
12/31/95 $12,231 $12,253
</TABLE>
* Inception of the Fixed Income Fund was January 4, 1993. The data represented
herein and below represents past performance and is not a guarantee of future
performance. The value of your shares may fluctuate and be worth more or less
than their original cost at the time of redemption.
For periods ending December 31, 1995:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
--------------------- ------------
1/4/93- 1/4/93- (b)
1 Year 1 Year 12/31/95 12/31/95
------ ------ -------- --------
<S> <C> <C> <C> <C>
Fixed Income Fund 17.70% 17.70% 6.97% 22.31%
Lehman Intermediate Gov't
Corporate Bond Index 15.33% 15.33% 7.03% 22.53%
</TABLE>
(a) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends (income) and
capital gains (profits from the sale of a bond).
(b) Inception of the Fixed Income Fund was 1/4/93.
ADVISER'S COMMENTS ON 1995 PERFORMANCE OF THE FIXED INCOME FUND:
The historic decline in interest rates in 1995 provided the bond market with its
best total rate of return since 1985. Falling bond yields raised bond prices
and provided investors in the Fund a total rate of return of 17.7%, well in
excess of the income rate, and greater than the Lehman Intermediate Government &
Corporate Bond Index's return of 15.3%.
The Fund's high quality and diversified approach took advantage of this falling
rate environment. By staggering the maturities of the bonds primarily across
the three to ten year range, the Fund received the price benefit associated with
declining rates while providing investors with a stable income stream. The Fund
had a greater emphasis on high quality corporate bonds than the Lehman Index,
which boosted returns for the Fund, as corporates had a higher income rate and
greater price appreciation during 1995.
FIXED INCOME FUND OBJECTIVE: INCOME AND CAPITAL PRESERVATION
4
<PAGE>
- --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PERFORMANCE REVIEW DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL LEHMAN
INCOME 5 YR G0
FUND INDEX
---------- ---------
<S> <C> <C>
5/16/94 $10,000 $10,000
6/30/94 $10,046 $9,877
9/30/94 $10,133 $10,058
12/31/94 $10,081 $10,025
3/31/95 $10,506 $10,501
6/30/95 $10,713 $10,769
9/30/95 $10,971 $11,064
12/31/95 $11,178 $11,266
</TABLE>
* Inception of the Municipal Income Fund was May 16, 1994. The data represented
herein and below represents past performance and is not a guarantee of future
performance. The value of your shares may fluctuate and be worth more or less
than their original cost at the time of redemption.
For periods ending December 31, 1995:
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
--------------------- ------------
5/16/94- 5/16/94- (b)
1 Year 1 Year 12/31/95 12/31/95
------ ------ -------- --------
<S> <C> <C> <C> <C>
Municipal Income Fund 10.88% 10.88% 7.05% 11.78%
Lehman 5 year General
Obligation Municipal Index 11.64% 11.64% 7.56% 12.66%
</TABLE>
(a) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends (income) and
capital gains (profits from the sale of a bond).
(b) Inception of the Municipal Income Fund was 5/16/94.
ADVISER'S COMMENTS ON 1995 PERFORMANCE OF THE MUNICIPAL INCOME FUND:
Falling interest rates were the most significant factor influencing the
Municipal Income Fund's total rate of return of 10.9% for 1995, as compared to
the Lehman Five Year General Obligation Municipal Index's return of 11.6%.
Slower economic activity helped to lower inflationary expectations and resulted
in a sharp decline in bond yields for the year. As a result of the decline in
yields, municipal bond prices rose during the period, providing investors in the
Fund a total rate of return above the income rate.
For the year, the Fund's emphasis on Ohio municipal bonds and its staggered
maturity approach were the primary factors affecting its return relative to the
Lehman 5 Year GO Municipal Index. The nominal yield for Ohio municipal bonds is
generally less than a nationally diversified index due to Ohio's higher average
state income tax rates. Emphasizing Ohio bonds resulted in a slightly lower
average yield level for the fund during the period as compared to the Lehman
Index which is nationally diversified. In addition the maturity concentration
of the Index (4 to 6 years) provided a somewhat higher level of both volatility
and return than the Fund, which is more broadly diversified.
MUNICIPAL INCOME FUND OBJECTIVE: TAX-FREE INCOME AND CAPITAL PRESERVATION
5
<PAGE>
- --------------------------------------------------------------------------------
GROWTH FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number of Shares Dollar Value
---------------- ------------
<S> <C> <C>
AUTO PARTS
Echlin Incorporated 8,500 310,250
----------
TOTAL AUTO PARTS - 2.0% . . . . . . . . . . . . . . . . . . . . $ 310,250
CHEMICALS
Air Products & Chemicals, Incorporated 5,600 295,400
----------
TOTAL CHEMICALS - 1.9% . . . . . . . . . . . . . . . . . . . . $ 295,400
COMMUNICATIONS EQUIPMENT
Motorola, Incorporated 4,600 262,200
----------
TOTAL COMMUNICATIONS EQUIPMENT - 1.7% . . . . . . . . . . . . . $ 262,200
COMPUTER SYSTEMS
Hewlett-Packard Company 7,600 636,500
----------
TOTAL COMPUTER SYSTEMS - 4.2% . . . . . . . . . . . . . . . . . $ 636,500
ELECTRIC UTILITIES
TECO Energy, Incorporated 12,000 307,500
----------
TOTAL ELECTRICAL UTILITIES - 2.0% . . . . . . . . . . . . . . . $ 307,500
ELECTRICAL EQUIPMENT
General Electric Company 8,700 626,400
Johnson Controls, Incorporated 2,600 178,750
----------
TOTAL ELECTRICAL EQUIPMENT - 5.3% . . . . . . . . . . . . . . . $ 805,150
FINANCIAL - INSURANCE
General RE Corporation 4,000 620,000
----------
TOTAL FINANCIAL - Insurance - 4.1% . . . . . . . . . . . . . . $ 620,000
FINANCIAL - REGIONAL BANKS
Boatmen's Bancshares, Inc. 6,000 245,250
Corestates Financial Corporation 5,700 215,887
Fifth Third Bancorp 5,400 395,550
Regions Financial Corporation 3,500 150,500
----------
TOTAL FINANCIAL - REGIONAL BANKS - 6.6% . . . . . . . . . . . . $ 1,007,187
FOODS AND FOOD RETAILERS
Albertson's, Inc. 9,500 312,313
Sysco Corporation 4,000 130,000
----------
TOTAL FOODS AND FOOD RETAILERS - 2.9% . . . . . . . . . . . . . $ 442,313
HEALTH CARE - DRUGS
Mylan Laboratories 15,500 364,250
Pfizer, Incorporated 5,000 315,000
Schering-Plough Corporation 11,720 641,670
----------
TOTAL HEALTH CARE - DRUGS - 8.7% . . . . . . . . . . . . . . . $ 1,320,920
HEALTH CARE - SERVICES
Columbia/HCA Healthcare Corporation 5,700 289,275
----------
TOTAL HEALTH CARE - SERVICES - 1.9% . . . . . . . . . . . . . . $ 289,275
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
GROWTH FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
Number of Shares Dollar Value
---------------- ------------
HOUSEHOLD PRODUCTS
Duracell International, Incorporated 6,500 336,375
Procter & Gamble Company 8,500 705,500
----------
TOTAL HOUSEHOLD PRODUCTS - 6.9% . . . . . . . . . . . . . . . . $ 1,041,875
INDUSTRIAL SERVICES
Cintas Corporation 3,400 151,300
----------
TOTAL INDUSTRIAL SERVICES - 1.0% . . . . . . . . . . . . . . . $ 151,300
INFORMATION PROCESSING
Computer Associates International, Incorporated 5,000 284,375
EMC Corporation* 19,000 292,125
General Motors Class E (Electronic Data Systems) 13,000 676,000
----------
TOTAL INFORMATION PROCESSING - 8.2% . . . . . . . . . . . . . . $ 1,252,500
MACHINERY
Dover Corporation 5,000 184,375
----------
TOTAL MACHINERY - 1.2% . . . . . . . . . . . . . . . . . . . . $ 184,375
MEDIA AND PUBLISHING
Donnelley (R.R.) & Sons Company 8,300 326,813
----------
TOTAL MEDIA AND PUBLISHING - 2.2% . . . . . . . . . . . . . . . $ 326,813
METALS - STEEL
Worthington Industries 15,000 312,187
----------
TOTAL METALS - STEEL - 2.1% . . . . . . . . . . . . . . . . . . $ 312,187
NATURAL GAS
Enron Corporation 8,200 312,625
Piedmont Natural Gas Company 4,600 106,950
----------
TOTAL NATURAL GAS - 2.8% . . . . . . . . . . . . . . . . . . . $ 419,575
PAPER PRODUCTS
Mead Corporation 4,600 240,350
Sonoco Products Company 12,325 323,531
----------
TOTAL PAPER PRODUCTS - 3.7% . . . . . . . . . . . . . . . . . . $ 563,881
PETROLEUM
Mobil Corporation 5,700 638,400
Royal Dutch Petroleum Company (Netherlands) 4,300 606,838
----------
TOTAL PETROLEUM COMPANIES - 8.2% . . . . . . . . . . . . . . . .$ 1,245,238
RESTAURANTS
McDonald's Corporation 15,000 676,875
----------
TOTAL RESTAURANTS - 4.5% . . . . . . . . . . . . . . . . . . . .$ 676,875
RETAILING
May Department Stores Company 6,000 253,500
Sherwin Williams Company, (The) 7,800 317,850
Walgreen Company 5,000 149,375
Wal-Mart Stores, Incorporated 13,000 290,875
----------
TOTAL RETAILING - 6.7% . . . . . . . . . . . . . . . . . . . . $ 1,011,600
* NON-DIVIDEND PAYING SECURITY.
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
- --------------------------------------------------------------------------------
GROWTH FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
Number of Shares Dollar Value
---------------- ------------
TELECOMMUNICATION SERVICES
AT&T Corporation 5,000 323,750
GTE Corporation 14,166 623,304
----------
TOTAL TELECOMMUNICATION - 6.2% . . . . . . . . . . . . . . . . $ 947,054
TRANSPORTATION
Burlington Northern, Incorporated 2,300 179,400
----------
TOTAL TRANSPORTATION - 1.2% . . . . . . . . . . . . . . . . . . $ 179,400
TOTAL COMMON STOCKS - 96.2% . . . . . . . . . . . . . . . . . . . . $14,609,368
(COMMON STOCK IDENTIFIED COST $11,940,095)
CASH EQUIVALENTS
Dreyfus U.S. Treasury Prime Money Market 578,937
----------
TOTAL CASH EQUIVALENTS - 3.8% . . . . . . . . . . . . . . . . . $ 578,937
(CASH EQUIVALENTS IDENTIFIED COST $578,937)
TOTAL PORTFOLIO VALUE - 100%. . . . . . . . . . . . . . . . . . . . $15,188,305
(TOTAL PORTFOLIO IDENTIFIED COST $12,519,032)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . $ 319,856
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $14,868,449
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF SHARES DOLLAR VALUE
---------------- ------------
<S> <C> <C>
AUTO PARTS
Echlin, Incorporated 8,200 299,300
----------
TOTAL AUTO PARTS - 1.9% . . . . . . . . . . . . . . . . . . . . $ 299,300
BEVERAGES
Whitman Corporation 10,000 232,500
----------
TOTAL BEVERAGES - 1.4%. . . . . . . . . . . . . . . . . . . . . $ 232,500
BUILDING MATERIALS
Medusa Corporation 10,000 265,000
----------
TOTAL BUILDING MATERIALS - 1.7% . . . . . . . . . . . . . . . . $ 265,000
CHEMICALS
Cabot Corporation 9,000 484,875
M.A. Hanna Company 9,550 267,400
Morton International, Incorporated 7,500 269,063
----------
TOTAL CHEMICALS - 6.4%. . . . . . . . . . . . . . . . . . . . . $ 1,021,338
COMMUNICATIONS EQUIPMENT
Cabletron Systems, Incorporated* 5,500 445,500
Belden, Incorporated 11,500 296,125
----------
TOTAL COMMUNICATIONS EQUIPMENT - 4.6% . . . . . . . . . . . . . $ 741,625
COMPUTER SYSTEMS
EMC Corporation* 25,500 392,062
Sequent Computer Systems, Incorporated* 13,500 195,750
----------
TOTAL COMPUTER SYSTEMS - 3.7% . . . . . . . . . . . . . . . . . $ 587,812
COSMETICS
International Flavors and Fragrances, Inc. 2,600 124,800
----------
TOTAL COSMETICS - 0.8%. . . . . . . . . . . . . . . . . . . . . $ 124,800
ELECTRIC UTILITIES
Illinova Corporation 12,000 360,000
TECO Energy, Incorporated 17,400 445,875
Wisconsin Energy Corporation 13,800 422,625
----------
TOTAL ELECTRIC UTILITIES - 7.7% . . . . . . . . . . . . . . . . $ 1,228,500
ELECTRONICS - SEMICONDUCTORS
Silicon Valley Group, Incorporated* 9,500 239,875
Xilinx, Incorporated* 3,000 91,500
----------
TOTAL ELECTRONICS - SEMICONDUCTORS - 1.8% . . . . . . . . . . . $ 331,375
ENERGY SERVICES
Smith International, Incorporated* 14,000 329,000
----------
TOTAL OIL PRODUCTION - PRODUCTS - 2.1%. . . . . . . . . . . . . $ 329,000
FINANCIAL - INSURANCE
AON Corporation 8,000 399,000
Reliastar Financial Corporation 7,600 337,250
----------
TOTAL FINANCIAL - INSURANCE - 4.6%. . . . . . . . . . . . . . . $ 736,250
* NON-DIVIDEND PAYING SECURITY.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
- --------------------------------------------------------------------------------
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
NUMBER OF SHARES DOLLAR VALUE
---------------- ------------
FINANCIAL - REGIONAL BANKS
Bank of New York Co., Incorporated 6,500 316,875
Fifth Third Bancorp 3,000 219,750
First Fidelity Bancorp 4,400 331,650
Southtrust Corporation 13,000 333,125
----------
TOTAL FINANCIAL - REGIONAL BANKS - 7.5% . . . . . . . . . . . . $ 1,201,400
FINANCIAL - SERVICES
A. G. Edwards, Incorporated 7,300 174,288
Advanta Corporation - Class A 10,300 393,975
----------
Total Financial - Services - 3.5% . . . . . . . . . . . . . . . $ 568,263
FOODS AND FOOD RETAILERS
Hannaford Brothers Company 7,800 192,075
Hudson Foods, Inc., Class A 13,000 224,250
----------
TOTAL FOODS AND FOOD RETAILERS - 2.6% . . . . . . . . . . . . . $ 416,325
HEALTH CARE - DRUGS
Watson Pharmaceutical, Incorporated* 9,000 441,000
----------
TOTAL HEALTH CARE - DRUGS - 2.8%. . . . . . . . . . . . . . . . $ 441,000
HEALTH CARE - SERVICES
Cardinal Health, Incorporated 7,500 410,625
HBO and Company 4,000 306,500
Healthcare COMPARE Corporation* 4,500 195,750
----------
TOTAL HEALTH CARE - SERVICES - 5.7% . . . . . . . . . . . . . . $ 912,875
INDUSTRIAL SERVICES
G & K Services, Inc., Class A 10,200 260,100
----------
TOTAL INDUSTRIAL SERVICES - 1.6%. . . . . . . . . . . . . . . . $ 260,100
INFORMATION PROCESSING
Broderbund Software, Incorporated* 2,000 121,500
Keane, Incorporated* 12,350 273,244
Sterling Software, Incorporated* 9,000 561,375
Sungard Data Systems, Incorporated* 10,000 285,000
----------
TOTAL INFORMATION PROCESSING - 7.7% . . . . . . . . . . . . . . $ 1,241,119
MACHINE TOOLS
Kennametal, Incorporated 14,000 444,500
----------
TOTAL MACHINE TOOLS - 2.8%. . . . . . . . . . . . . . . . . . . $ 444,500
MEDIA AND PUBLISHING
Reynolds & Reynolds Company, Class A 11,000 427,625
----------
TOTAL MEDIA & PUBLISHING - 2.7% . . . . . . . . . . . . . . . . $ 427,625
METALS - STEEL
Material Sciences Corporation* 14,000 208,250
----------
TOTAL METALS - STEEL - 1.3% . . . . . . . . . . . . . . . . . . $ 208,250
* NON-DIVIDEND PAYING SECURITY.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
NUMBER OF SHARES DOLLAR VALUE
---------------- ------------
OIL PRODUCTION AND EXPLORATION
Vastar Resources, Incorporated 11,000 349,250
----------
TOTAL OIL PRODUCTION AND EXPLORATION - 2.2% . . . . . . . . . . $ 349,250
RESTAURANTS
Wendy's International, Incorporated 21,000 446,250
----------
TOTAL RESTAURANTS - 2.8%. . . . . . . . . . . . . . . . . . . . $ 446,250
RETAILING
Dillard Department Stores, Inc., Class A 7,000 199,500
Staples, Incorporated* 12,000 292,500
----------
TOTAL RETAIL - 3.1% . . . . . . . . . . . . . . . . . . . . . . $ 492,000
TELECOMMUNICATION SERVICES
Century Telephone Enterprises 12,500 396,875
Arch Communications Group* 5,500 132,000
U.S. West Media Group* 6,500 123,500
Paging Network, Incorporated* 8,200 199,875
----------
TOTAL TELECOMMUNICATION SERVICES - 5.3% . . . . . . . . . . . . $ 852,250
TRANSPORTATION
Kansas City Southern Industries 6,000 274,500
----------
TOTAL TRANSPORTATION - 1.7% . . . . . . . . . . . . . . . . . . $ 274,500
WASTE MANAGEMENT
Sanifill, Incorporated* 8,500 283,687
----------
TOTAL WASTE MANAGEMENT - 1.8% . . . . . . . . . . . . . . . . . $ 283,687
TOTAL COMMON STOCKS - 91.8% . . . . . . . . . . . . . . . . . . . . $14,716,894
(COMMON STOCK IDENTIFIED COST $12,597,750)
CASH EQUIVALENTS
Dreyfus U.S. Treasury Prime Money Market Fund 1,307,057
----------
TOTAL CASH EQUIVALENTS - 8.2% . . . . . . . . . . . . . . . . . $ 1,307,057
(CASH EQUIVALENTS IDENTIFIED COST $1,307,057)
TOTAL PORTFOLIO VALUE - 100.0%. . . . . . . . . . . . . . . . . . . $16,023,951
(TOTAL PORTFOLIO IDENTIFIED COST $13,904,807)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . $ (832,879)
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $15,191,072
- --------------------------------------------------------------------------------
</TABLE>
* NON-DIVIDEND PAYING SECURITY.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
- --------------------------------------------------------------------------------
FIXED INCOME FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - BONDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
BANK BONDS - MAJOR Regional
Banc One Corporation, 7.25% Due 8/1/02 200,000 $ 213,750
Comerica Bank Subordinated Debenture,
10.125% Due 6/1/98 25,000 27,375
Core States Capital, 6.625% Due 3/15/05 200,000 204,250
NBD Bancorp, 7.25% Due 8/15/04 275,000 293,219
PNC Funding Corp. Subordinated Debenture,
6.875% Due 3/1/03 200,000 206,750
Suntrust Banks Note, 8.375% Due 3/1/96 25,000 25,125
Wachovia Bank Corporation, 7.0% Due 12/15/99 250,000 260,312
----------
TOTAL MAJOR REGIONAL BANKS - 7.7% . . . . . . . . . . . . . . . . $ 1,230,781
BANK BONDS - MONEY CENTER
Bankers Trust Subordinated Debenture,
7.125% Due 7/31/02 200,000 208,750
Republic New York Corporation, 7.25% Due 7/15/02 200,000 213,500
----------
TOTAL MONEY CENTER BANKS - 2.6% . . . . . . . . . . . . . . . . $ 422,250
CAPITAL EQUIPMENT
G.E. Corporation Medium Term Note
6.875% Due 12/29/99 250,000 258,750
Illinois Tool Works, Inc., 5.875% Due 3/1/00 200,000 199,750
----------
TOTAL CAPITAL EQUIPMENT COMPANIES - 2.9%. . . . . . . . . . . . $ 458,500
CHEMICALS
Hercules, Incorporated, 6.625% Due 6/1/03 250,000 257,500
----------
TOTAL CHEMICAL COMPANIES - 1.6% . . . . . . . . . . . . . . . . $ 257,500
COMPUTER HARDWARE/SOFTWARE
International Business Machines Corporation,
6.375% Due 6/15/00 200,000 204,750
----------
TOTAL COMPUTER HARDWARE/SOFTWARE - 1.3% . . . . . . . . . . . . $ 204,750
ELECTRIC UTILITIES
Carolina Power and Light Company,
6.75% Due 10/1/02 250,000 259,375
Consolidated Edison Corporation,
6.5% Due 2/1/01 200,000 204,750
Louisville Gas & Electric Company,
7.5% Due 7/1/02 25,000 25,469
Midwest Power Corporation, 7.00% Due 2/15/05 200,000 211,000
Pacific Gas & Electric Company, 6.875% Due 12/1/99 40,000 40,450
Public Service Electric & Gas Company,
6.5% Due 5/1/04 200,000 202,750
Union Electric Power Co., First Mortgage,
6.875% Due 8/1/04 200,000 210,811
----------
TOTAL ELECTRIC UTILITIES - 7.2% . . . . . . . . . . . . . . . . $ 1,154,605
ENTERTAINMENT AND LEISURE
Walt Disney Company, 5.80% Due 10/27/08 150,000 144,562
----------
TOTAL ENTERTAINMENT AND LEISURE - 0.9%. . . . . . . . . . . . . $ 144,562
FINANCIAL - INSURANCE
Allstate Insurance Company, 5.875% Due 6/15/98 250,000 250,625
----------
TOTAL FINANCIAL - INSURANCE - 1.6%. . . . . . . . . . . . . . . $ 250,625
FINANCIAL - SERVICES
Associates Corporation, N.A., 6.00% Due 3/15/00 200,000 200,250
CIT Group Holdings, 8.375% Due 11/01/01 250,000 276,562
G.E. Capital Corporation Medium Term Note,
6.59% Due 1/15/98 30,000 30,600
General Motors Acceptance Corp. Medium Term,
6.1% Due 9/11/97 200,000 201,500
Household Finance Corporation Senior Note,
6.875% Due 3/01/03 200,000 208,250
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
FIXED INCOME FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - BONDS
- --------------------------------------------------------------------------------
FACE VALUE DOLLAR VALUE
---------- ------------
FINANCIAL - SERVICES, CONTINUED
International Lease Finance Corporation,
6.5% Due 8/15/99 200,000 204,750
----------
TOTAL FINANCIAL - SERVICES - 7.0% . . . . . . . . . . . . . . . $ 1,121,912
FOOD AND BEVERAGE
General Mills Incorporated, Medium Term Note,
8.85% Due 7/19/99 200,000 218,750
Pepsico, Inc. Medium Term Note, 5.463% Due 7/1/98 200,000 199,500
Sara Lee Corporation, Medium Term Note,
5.700% Due 7/14/00 250,000 248,750
----------
TOTAL FOOD AND BEVERAGE - 4.2%. . . . . . . . . . . . . . . . . $ 667,000
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED)
Province of Manitoba, Canada, 6.750% Due 3/1/03 200,000 208,750
Province of Ontario, Canada, 8.000% Due 10/17/01 30,000 33,113
Province of Ontario, Canada, 7.375% Due 1/27/03 200,000 215,500
----------
TOTAL FOREIGN GOVERNMENTS - 2.9% . . . . . . . . . . . . . . . $ 457,363
FOREIGN UTILITIES (U.S. DOLLAR DENOMINATED)
Hydro Quebec Medium Term Note, 6.980% Due 3/01/05 200,000 209,276
----------
TOTAL FOREIGN UTILITIES - 1.3%. . . . . . . . . . . . . . . . . $ 209,276
NATURAL GAS
Southern California Gas Company, 6.500%
Due 12/15/97 250,000 253,750
----------
TOTAL NATURAL GAS - 1.6% . . . . . . . . . . . . . . . . . . . $ 253,750
NEWSPAPER/PUBLISHING
Scripps Howard Corporation, 7.375% Due 12/15/98 225,000 234,563
----------
TOTAL NEWSPAPER/PUBLISHING - 1.5% . . . . . . . . . . . . . . . $ 234,563
PETROLEUM
Amoco Canada, 7.250% Due 12/1/02 200,000 215,500
Dresser Industries, 6.250% Due 6/1/00 250,000 253,750
Texaco Capital, Incorporated, 6.875% Due 7/15/99 200,000 207,000
----------
TOTAL PETROLEUM - 4.2%. . . . . . . . . . . . . . . . . . . . . $ 676,250
RAILROADS
CSX Transportation Equipment Trust, 6.070%
Due 3/15/01 200,000 202,750
Union Pacific Corporation, 6.250% Due 3/15/99 250,000 252,500
----------
TOTAL RAILROADS - 2.8% . . . . . . . . . . . . . . . . . . . . $ 455,250
RETAIL
Wal-Mart Stores, Inc., 6.375% Due 3/01/03 200,000 204,250
----------
TOTAL RETAIL - 1.3% . . . . . . . . . . . . . . . . . . . . . . $ 204,250
REAL ESTATE INVESTMENT TRUSTS
Merry Land & Investment Company, 7.25% Due 6/15/05 200,000 207,250
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS - 1.3%. . . . . . . . . . . $ 207,250
TELECOMMUNICATIONS
Cincinnati Bell, Inc., 6.240% Due 12/20/03 250,000 252,500
New York Telephone, 5.875% Due 9/1/03 200,000 197,750
Pacific Bell Telephone, 7.000% Due 7/15/04 200,000 212,500
Southwestern Bell Corporation, 6.375% Due 4/1/01 200,000 203,750
----------
TOTAL TELECOMMUNICATIONS - 5.4% . . . . . . . . . . . . . . . . $ 866,500
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
- --------------------------------------------------------------------------------
FIXED INCOME FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - BONDS
- --------------------------------------------------------------------------------
FACE VALUE DOLLAR VALUE
---------- ------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Federal Home Loan Mortgage Corporation,
6.55% Due 1/4/00 200,000 206,552
Federal Home Loan Mortgage Corporation,
8.155% Due 3/9/05 150,000 156,728
Federal Home Loan Mortgage Corporation,
7.35% Due 3/22/05 300,000 329,514
Federal Home Loan Mortgage Corporation,
6.005% Due 12/8/05 200,000 201,900
Federal Home Loan Mortgage Corporation,
CMO Series 1639-PD Average Maturity 1999,
5.6% due 8/15/06 250,000 246,170
Federal Home Loan Mortgage Corporation,
CMO Series 1660 Tranche G, 6.25% Due 7/15/07 250,000 251,647
Federal National Mortgage Association,
5.05% Due 11/10/98 250,000 247,692
Federal National Mortgage Association,
7.05% Due 12/10/98 200,000 208,462
Federal National Mortgage Association,
6.35% Due 8/10/99 210,000 215,611
Federal National Mortgage Association,
6.1% Due 2/10/00 250,000 254,288
Federal National Mortgage Association,
7.5% Due 2/11/02 200,000 217,758
Federal National Mortgage Association,
7.55% Due 4/22/02 200,000 218,538
Federal National Mortgage Association,
Medium Term Note 7.800% Due 3/29/05 200,000 213,564
----------
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 18.6% . . . $ 2,968,424
UNITED STATES GOVERNMENT OBLIGATIONS
United States Treasury Note, 7.25% Due 11/30/96 300,000 305,223
United States Treasury Note, 6.00% Due 11/30/97 500,000 507,155
United States Treasury Note, 6.00% Due 12/31/97 400,000 406,064
United States Treasury Note, 4.75% Due 9/30/98 250,000 246,882
United States Treasury Note, 6.00% Due 10/15/99 100,000 102,362
United States Treasury Note, 8.5% Due 11/15/00 400,000 452,732
United States Treasury Note, 7.875% Due 8/15/01 400,000 446,732
United States Treasury Note, 7.5% Due 11/15/01 400,000 440,848
United States Treasury Note, 7.875% Due 11/15/04 325,000 376,136
----------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 20.6%. . . . . . . $ 3,284,134
TOTAL FIXED INCOME - BONDS - 98.5%. . . . . . . . . . . . . . . . . $15,729,495
(FIXED INCOME IDENTIFIED COST $15,316,424)
CASH EQUIVALENTS
Dreyfus U.S. Treasury Prime Money Market Fund 235,613
----------
TOTAL CASH EQUIVALENTS - 1.5% . . . . . . . . . . . . . . . . . $ 235,613
(CASH EQUIVALENTS IDENTIFIED COST $235,613)
TOTAL PORTFOLIO VALUE - 100.0%. . . . . . . . . . . . . . . . . . . $15,965,108
(TOTAL PORTFOLIO IDENTIFIED COST $15,552,037)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . $ 9,748
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $15,974,856
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - MUNICIPAL BONDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
BUILDING AUTHORITY
Ohio State Building Authority, Administration Building Fund
Project A, 6.4% Due 10/1/01 50,000 $ 55,000
Ohio State Building Authority, Administrative Building Fund
Projects (MBIA Insured), 5.4% Due 10/1/02 50,000 52,562
Ohio State Building Authority, Correctional Facilities, Series A
Prerefunded 3/1/99 at 102, 7.3% Due 3/1/02 50,000 55,563
Ohio State Building Authority, State Correctional Facilities
Refunding Series 1991 A, 6.5% Due 10/1/01 50,000 55,063
-----------
TOTAL BUILDING AUTHORITY - 9.5% . . . . . . . . . . . . . . . . . . . . . . . . . $ 218,188
GENERAL OBLIGATION
Butler County, Ohio Infrastructure Special Assessment
General Obligation (AMBAC Insured), 4.9% Due 12/1/98 50,000 51,125
Cincinnati, Ohio General Obligation, 5.25% Due 12/1/00 50,000 52,250
Cleveland, Ohio General Obligation, (AMBAC Insured), 4.9% Due 9/1/02 50,000 51,375
Columbus, Ohio General Obligation, 5.1% Due 5/15/00 50,000 51,812
Columbus, Ohio Limited Tax General Obligation, 6.75% Due 7/1/96 50,000 50,760
Delaware County, Ohio General Obligation, 5.25% Due 12/1/06 50,000 51,312
Lakewood, Ohio General Obligation, 6.75% Due 12/01/97 50,000 52,500
Trumbull County, Ohio General Obligation, 5.25% Due 12/1/05 50,000 52,375
-----------
TOTAL GENERAL OBLIGATION - 18.1%. . . . . . . . . . . . . . . . . . . . . . . . . . $ 413,509
HIGHER EDUCATION
Ohio State Public Facilities Commission, Higher Education Capital
Facility, Series 11A (AMBAC Insured), 4.7% Due 6/1/00 75,000 76,313
Ohio State Higher Education Facilities, Series 11-B, 5.9% Due 12/1/05 50,000 53,687
Ohio State Higher Education Facilities, Series A, 6.4% Due 5/01/98 50,000 52,375
Ohio State Higher Education Facilities, Wittenberg University
(FGIC Insured), 6.75% Due 6/1/96 25,000 25,313
University of Cincinnati, Ohio General Receipts, 4.65% Due 6/1/98 50,000 50,500
-----------
TOTAL HIGHER EDUCATION - 11.3%. . . . . . . . . . . . . . . . . . . . . . . . . . $ 258,188
HOSPITAL/HEALTH
Hamilton County, Ohio Hospital Facility, Children's Hospital
(FGIC Insured), 5.0% Due 5/15/06 50,000 50,000
Maumee, Ohio Hospital Revenue, St. Lukes Hospital Project
(AMBAC Insured), 4.9% Due 12/1/99 50,000 51,438
Ohio State Public Facilities Commission Mental Health Facilities,
Series 11B, 4.25% Due 6/1/97 50,000 50,125
Ohio State Public Facilities Commission Mental Health Facilities,
Series 11B (FSA Insured), 4.25% Due 6/1/99 50,000 49,937
-----------
TOTAL HOSPITAL/HEALTH - 8.8%. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 201,500
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
- --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - MUNICIPAL BONDS
- --------------------------------------------------------------------------------
FACE VALUE DOLLAR VALUE
---------- ------------
SCHOOL DISTRICT
Centerville, Ohio City School District General Obligation
(FGIC Insured), 5.1% Due 12/1/03 50,000 51,750
Cincinnati, Ohio School District Revenue Anticipation Notes,
5.6% Due 6/15/97 50,000 51,000
Cleveland, Ohio City School District Refunding Series B
(FGIC Insured), 5.4% Due 6/1/02 50,000 52,750
Cook County, Illinois School District General Obligation
(AMBAC Insured), 5.2% Due 12/1/01 50,000 52,313
Indian Valley School District, Ohio General Obligation
(AMBAC Insured), 5.5% Due 12/1/06 50,000 52,312
Olmsted Falls, Ohio City School District General Obligation
(FGIC Insured), 5.3% Due 12/15/00 50,000 52,188
Southwestern City School District, Ohio, Franklin County and
Pickaway County, 6.25% Due 12/1/05 50,000 54,313
West Geauga, Ohio Local School District, School Improvement
General Obligation (AMBAC Insured), 5.45% Due 11/1/04 50,000 52,875
Woodridge, Ohio Local School District General Obligation, Summit
County (AMBAC Insured), 5.45% Due 12/01/04 50,000 52,875
-----------
TOTAL SCHOOL DISTRICT - 20.6% . . . . . . . . . . . . . . . . . . . . . . . . . . $ 472,376
UTILITIES
Weatherford, Texas Utility System Revenue, Series 1994
(MBIA Insured), 5.1% Due 9/1/03 50,000 51,625
-----------
TOTAL UTILITIES - 2.3%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,625
WATER AND SEWER
Celina, Ohio Wastewater System Mortgage Revenue
(FGIC Insured), 5.6% Due 11/01/99 40,000 42,050
Cleveland, Ohio Waterworks Revenue First Mortgage,
Series G (MBIA Insured), 5.25% Due 1/1/04 50,000 52,063
Columbus, Ohio Sewer Revenue, 5.4% Due 6/01/98 50,000 51,813
Miamisburg, Ohio Sewer System Refunding (AMBAC Insured),
4.35% Due 11/15/02 50,000 49,875
Ohio State Water Development Authority (MBIA Insured),
5.00% Due 12/1/98 50,000 51,312
Ohio State Water Development Authority (MBIA Insured),
5.5% Due 6/01/01 50,000 52,562
Southwest Ohio Regional Water District Waterworks Revenue
5.25% Due 12/1/05 50,000 51,437
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - MUNICIPAL BONDS
- --------------------------------------------------------------------------------
FACE VALUE DOLLAR VALUE
---------- ------------
WATER AND SEWER, CONTINUED
Warren County, Ohio Water and Sewer Line Extension, Special
Assessment Bonds, Series 1994, 5.5% Due 12/1/03 50,000 53,500
-----------
TOTAL WATER AND SEWER - 17.6% . . . . . . . . . . . . . . . . . . . . . . . . . . $ 404,612
TOTAL FIXED INCOME - MUNICIPAL BONDS - 88.2%. . . . . . . . . . . . . . . . . . . . . . $ 2,019,998
(MUNICIPAL BONDS IDENTIFIED COST $1,955,384)
CASH EQUIVALENTS
Dreyfus Ohio Municipal Money Market 271,689
-----------
TOTAL CASH EQUIVALENTS - 11.8%. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 271,689
(CASH IDENTIFIED COST $271,689)
TOTAL PORTFOLIO VALUE - 100.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,291,687
(TOTAL PORTFOLIO IDENTIFIED COST $2,227,073)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (8,789)
- -----------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 2,282,898
- -----------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS BOND FUNDS
----------------------------- ----------------------------
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
ASSETS
Investment Securities $ 15,188,305 $ 16,023,951 $ 15,965,108 $ 2,291,687
at Market Value*
Dividends and Interest Receivable 29,645 15,639 254,718 16,229
Receivable for Securities Sold 0 0 0 0
------------- ------------- ------------- ------------
Total Assets. . . . . . . . . . . . . . $ 15,217,950 $ 16,039,590 $ 16,219,826 $ 2,307,916
LIABILITIES:
Investment Securities Purchased 0 642,634 0 0
Dividends Payable 44,611 63,156 233,239 22,901
Capital Gains Payable 292,144 130,391 0 747
Accrued Management Fees 12,746 12,337 11,731 1,370
------------- ------------- ------------- ------------
Total Liabilities . . . . . . . . . . . $ 349,501 $ 848,518 $ 244,970 $ 25,018
NET ASSETS. . . . . . . . . . . . . . . . . $ 14,868,449 $ 15,191,072 $ 15,974,856 $ 2,282,898
NET ASSETS CONSIST OF:
Paid in Capital (see note #7) 12,199,176 13,071,928 15,585,325 2,218,275
Undistributed Net
Investment Income 0 0 12 9
Undistributed Net Realized Gain
(Loss) from Security Transactions 0 0 (23,552) 0
Net Unrealized Gain (Loss)
on Investments. . . . . . . . . . . . . 2,669,273 2,119,144 413,071 64,614
------------- ------------- ------------- ------------
NET ASSETS. . . . . . . . . . . . . . . . . $ 14,868,449 $ 15,191,072 $ 15,974,856 $ 2,282,898
Shares Outstanding. . . . . . . . . . . . . 788,539 782,098 1,008,495 145,595
OFFERING, REDEMPTION AND
NET ASSET VALUE PER SHARE . . . . . . . . . $ 18.86 $ 19.42 $ 15.84 $ 15.68
*IDENTIFIED COST. . . . . . . . . . . . . . $ 12,519,032 $ 13,904,807 $ 15,552,037 $ 2,227,073
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS JANUARY 1 - DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS BOND FUNDS
----------------------------- ----------------------------
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
------------- ------------- ------------- ------------
YR. ENDED YR. ENDED YR. ENDED YR. ENDED
12/31/95 12/31/95 12/31/95 12/31/95
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 32,691 $ 38,645 $ 948,886 $ 96,391
Dividends 266,113 130,738 0 0
------------ ------------ ------------ -----------
Total Investment Income . . . . . . . . . $ 298,804 $ 169,383 $ 948,886 $ 96,391
EXPENSES:
Gross Management Fee 161,178 138,095 171,937 22,310
Management Fee Waiver
(See accompanying note #3) (37,195) (31,868) (44,853) (8,982)
------------ ------------ ------------ -----------
Total Expenses. . . . . . . . . . . . . . $ 123,983 $ 106,227 $ 127,084 $ 13,328
Net Investment Income . . . . . . . . . . . . $ 174,821 $ 63,156 $ 821,802 $ 83,063
REALIZED AND UNREALIZED GAINS (LOSSES):
Net Realized Gain (Loss) from
Security Transactions 295,444 136,269 (23,420) 747
Net Unrealized Gain (Loss)
on Investments 2,869,051 2,030,849 1,598,182 108,108
------------ ------------ ------------ -----------
------------ ------------ ------------ -----------
NET GAIN (LOSS) ON INVESTMENTS. . . . . . . . $ 3,164,495 $ 2,167,118 $ 1,574,762 $ 108,855
NET INCREASE IN ASSETS
FROM OPERATIONS . . . . . . . . . . . . . . $ 3,339,316 $ 2,230,274 $ 2,396,564 $ 191,918
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS
------------------------------------------------------------
GROWTH FUND OPPORTUNITY FUND
----------------------------- ----------------------------
YR. ENDED YR. ENDED YR. ENDED 5/16/94-
12/31/95 12/31/94 12/31/95 12/31/94
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 174,821 137,013 $ 63,156 19,449
Net Realized Gain (Loss)
from Security Transactions 295,444 2,717 136,269 (5,878)
Net Unrealized Gain (Loss)
on Investments 2,869,051 (477,270) 2,030,849 88,296
------------- ------------- ------------- ------------
NET INCREASE (DECREASE) IN
ASSETS FROM OPERATIONS . . . . . . . . . $ 3,339,316 (337,540) $ 2,230,274 101,867
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (174,821) (137,013) (63,156) (19,449)
Net Realized Gain from
Security Transactions (292,144) 0 (130,391) 0
------------- ------------- ------------- ------------
Net Decrease in Assets
from Distributions . . . . . . . . . . $ (466,965) (137,013) $ (193,547) (19,449)
CAPITAL SHARE TRANSACTIONS:
Proceeds From Sale of Shares 3,181,606 3,480,182 7,202,770 6,170,716
Net Asset Value of Shares Issued on
Reinvestment of Dividends 158,353 107,678 4,955 0
Cost of Shares Redeemed (648,025) (387,509) (341,113) (15,401)
------------- ------------- ------------- ------------
NET INCREASE IN ASSETS FROM
CAPITAL SHARE TRANSACTIONS . . . . . . $ 2,691,934 3,200,351 $ 6,866,612 6,155,315
NET INCREASE IN NET ASSETS . . . . . . . . . $ 5,564,285 2,725,798 $ 8,903,339 6,237,733
Net Assets at Beginning of Period. . . . . . $ 9,304,164 6,578,366 $ 6,287,733 50,000
NET ASSETS AT END OF PERIOD. . . . . . . . . $ 14,868,449 9,304,164 $ 15,191,072 6,287,733
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND FUNDS
------------------------------------------------------------
FIXED INCOME FUND MUNICIPAL INCOME FUND
----------------------------- ----------------------------
YR. ENDED YR. ENDED YR. ENDED 5/16/94-
12/31/95 12/31/94 12/31/95 12/31/94
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 821,802 $ 647,660 $ 83,063 $ 37,222
Net Realized Gain (Loss)
from Security Transactions (23,420) (151) 747 0
Net Unrealized Gain (Loss)
on Investments 1,598,182 (1,253,516) 108,108 (43,494)
------------- ------------- ------------- ------------
NET INCREASE (DECREASE) IN
ASSETS FROM OPERATIONS . . . . . . . . . $ 2,396,564 $ (606,007) $ 191,918 $ (6,272)
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income 821,790 (647,659) (83,054) (37,222)
Net Realized Gain from
Security Transactions 0 0 (747) 0
------------- ------------- ------------- ------------
Net Decrease in Assets
from Distributions . . . . . . . . . . $ (821,790) $ (647,659) $ (83,801) $ (37,222)
CAPITAL SHARE TRANSACTIONS:
Proceeds From Sale of Shares 3,632,971 4,450,109 797,695 1,492,059
Net Asset Value of Shares Issued on
Reinvestment of Dividends/Gains 687,058 549,819 65,076 18,630
Cost of Shares Redeemed (2,376,556) (1,366,283) (180,347) (24,838)
------------- ------------- ------------- ------------
NET INCREASE IN ASSETS FROM
CAPITAL SHARE TRANSACTIONS . . . . . . $ 1,943,473 $ 3,633,645 $ 682,424 $ 1,485,851
NET INCREASE IN NET ASSETS . . . . . . . . . $ 3,518,247 $ 2,379,979 $ 790,541 $ 1,442,357
Net Assets at Beginning of Period. . . . . . $ 12,456,609 $ 10,076,630 $ 1,492,357 $ 50,000
NET ASSETS AT END OF PERIOD. . . . . . . . . $ 15,974,856 $ 12,456,609 $ 2,282,898 $ 1,492,357
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
STOCK FUNDS
-------------------------------------------------
GROWTH FUND OPPORTUNITY FUND
--------------------------------- --------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED 5/16/94-
12/31/95 12/31/94 12/31/93 12/31/95 12/31/94
--------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period $ 14.81 $ 15.71 $ 15.00 $ 15.70 $ 15.00
OPERATIONS:
Net Investment Income 0.24 0.24 0.18 0.08 0.05
Net Gains on Securities
(Realized & Unrealized) 4.42 (0.90) 0.71 3.89 0.70
--------- -------- --------- --------- --------
Total Operations . . . . . . . . . . . $ 4.66 $ (0.66) $ 0.89 $ 3.97 $ 0.75
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.24) (0.24) (0.18) (0.08) (0.05)
Distributions from Net
Realized Capital Gains (0.37) 0.00 0.00 (0.17) 0.00
--------- -------- --------- --------- --------
TOTAL DISTRIBUTIONS . . . . . . . . . . $ (0.61) $ (0.24) $ (0.18) $ (0.25) $ (0.05)
NET ASSET VALUE
End of Period . . . . . . . . . . . . . . . $ 18.86 $ 14.81 $ 15.71 $ 19.42 $ 15.70
TOTAL RETURN. . . . . . . . . . . . . . . . . 31.61% (4.22%) 5.93% 25.27% 4.99%
Net Assets - End of Period
(Millions). . . . . . . . . . . . . . . . . $ 14.87 $ 9.30 $ 6.58 $ 15.19 $ 6.29
RATIOS AFTER FEE WAIVERS: (1)
Ratio of Expenses to
Average Net Assets (2). . . . . . . . . . 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of Net Income to
Average Net Assets. . . . . . . . . . . . 1.42% 1.65% 1.38% 0.59% 1.01%
Portfolio Turnover Rate . . . . . . . . . . . 52.91% 30.38% 23.57% 62.15% 58.73%
- --------------------------------------------------------------------------------
</TABLE>
(1) The Adviser intends fee waivers of 0.30% to be permanent, although the
Adviser retains the right to remove the waivers after 12/31/96. As of
12/31/95, assuming no waiver of management fee expenses, the ratios would
have been: (See note #3.)
<TABLE>
<CAPTION>
Growth Opportunity
------ -----------
<S> <C> <C>
Expenses to Average Net Assets 1.30% 1.30%
Net income to Average Net Assets 1.12% 0.29%
</TABLE>
(2) Both stock funds' daily expense ratio is 1.0% annually.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
BOND FUNDS
-------------------------------------------------
FIXED INCOME FUND MUNICIPAL INCOME FUND
--------------------------------- ----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED 5/16/94-
12/31/95 12/31/94 12/31/93 12/31/95 12/31/94
--------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period $ 14.20 $ 15.80 $ 15.00 $ 14.73 $ 15.00
OPERATIONS:
Net Investment Income 0.83 0.80 0.60 0.63 0.39
Net Gains on Securities
(Realized & Unrealized) 1.64 (1.60) 0.83 0.96 (0.27)
--------- -------- --------- --------- --------
TOTAL OPERATIONS . . . . . . . . . . . $ 2.47 $ (0.80) $ 1.43 $ 1.59 $ 0.12
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.83) (0.80) (0.60) (0.63) (0.39)
Distributions from Net
Realized Capital Gains 0.00 0.00 (0.03) (0.01) 0.00
--------- -------- --------- --------- --------
TOTAL DISTRIBUTIONS . . . . . . . . . .$ 0.83 $ (0.80) $ (0.63) $ (0.64) $ (0.39)
Net Asset Value
End of Period . . . . . . . . . . . . . . .$ 15.84 $ 14.20 $ 15.80 $ 15.68 $ 14.73
TOTAL RETURN. . . . . . . . . . . . . . . . . 17.70% (5.14%) 9.51% 10.88% 0.81%
Net Assets - End of Period
(Millions). . . . . . . . . . . . . . . . .$ 15.97 $ 12.46 $ 10.08 $ 2.28 $ 1.49
RATIOS AFTER FEE WAIVERS: (1)
Ratio of Expenses to
Average Net Assets (2). . . . . . . . . . 0.85% 0.85% 0.85% 0.68%(3) 0.01%(3)
Ratio of Net Income to
Average Net Assets. . . . . . . . . . . . 5.54% 5.53% 5.08% 4.28% 5.46%
Portfolio Turnover Rate . . . . . . . . . . . 4.95% 0.04% 10.14% 7.81% 0.00%
- --------------------------------------------------------------------------------
</TABLE>
(1) The Adviser intends fee waivers of 0.30% to be permanent, although the
Adviser retains the right to remove the waivers after 12/31/96. As of
12/31/95, assuming no waiver of management fee expenses, the ratios would
have been: (See note #3.)
<TABLE>
<CAPTION>
Fixed Municipal
----- ---------
<S> <C> <C>
Expenses to Average Net Assets 1.15% 1.15%
Net income to Average Net Assets 5.24% 3.81%
</TABLE>
(2) The Fixed Income Fund's daily expense ratio is 0.85% annually. The
Municipal Income Fund's daily expense ratio is 0.75% annually.
(3) The Adviser waived 1.14% of the fee on the Municipal Income Fund in 1994,
and 0.47% of the fee through December 31, 1995.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1) ORGANIZATION:
The Growth Fund, Fixed Income Fund, Opportunity Fund and Municipal Income
Fund are each series of the Johnson Mutual Funds Trust, and are registered
under the Investment Company Act of 1940, as amended, as no-load, open-end
investment companies. The Johnson Mutual Funds Trust was established as an
Ohio business trust under Declaration of Trust dated September 30, 1992.
The Growth and Fixed Income Funds began offering their shares publicly on
January 4, 1993. The Opportunity and Municipal Income Funds began offering
their shares publicly on May 16, 1994.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
SECURITY VALUATION AND TRANSACTIONS:
The investments in securities are carried at market value. The market
quotation used for common stocks which are traded on any exchange or on the
NASDAQ over-the-counter market are valued at the last quoted sale price of
the day, determined as of the close of the New York Stock Exchange at 4:00
p.m. Eastern Standard Time. In absence of a sale price, a security is
valued at its last bid price except when, in the Adviser's opinion, the
last bid price does not accurately reflect the current value of the
security.
Fixed income securities are valued by using independent pricing services
which use prices provided by market makers or estimates of market values
obtained from yield data relating to instruments or securities with similar
characteristics. When prices are not readily available from a pricing
service, or when illiquid securities are being valued, securities are
valued at fair value as determined in good faith by the Adviser, subject to
review of the Board of Trustees. Short-term investments in fixed income
securities with maturities of less than 60 days are valued by using the
amortized cost method of valuation. Purchases and sales of securities are
recorded on a trade date basis.
INVESTMENT INCOME AND REALIZED CAPITAL GAINS AND LOSSES ON INVESTMENT
SECURITIES:
Dividend income is recorded on the ex-dividend date and interest income is
recorded on an accrual basis. Dividend and interest income are recorded
net of foreign taxes. Gains and losses on sales of investments are
calculated using the specific identification method.
INCOME TAXES:
It is the Funds' policy to distribute annually, prior to the end of the
calendar year, dividends sufficient to satisfy excise tax requirements of
the Internal Revenue Service. This Internal Revenue Service requirement
may cause an excess of distributions over the book year-end accumulated
income. In addition, it is the Funds' policy to distribute annually, after
the end of the calendar year, any remaining net investment income and net
realized capital gains.
3) INVESTMENT ADVISORY AGREEMENT:
The investment advisory agreement provides that Johnson Investment Counsel,
Inc. (the Adviser) will pay all of the Funds' operating expenses, excluding
brokerage fees and commissions, taxes, interest and extraordinary expenses.
The Growth Fund and Opportunity Fund pay the Adviser a management fee at
the annual rate of 1.00% of the Funds' average daily net assets, which is
accrued daily and paid monthly. The Fixed Income Fund pays the Adviser a
management fee at the annual rate of 0.85% of the Fund's average daily net
assets, and the Municipal Income Fund pays the Adviser a management fee at
the annual rate of 0.75% of the Fund's average daily net assets, both of
which are accrued daily and paid monthly. The Adviser has received
management fees for the period January 1 - December 31, 1995 as follows:
Growth Fund $123,983 Fixed Income Fund $127,084
Opportunity Fund $106,227 Municipal Income Fund $ 13,328
24
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS,CONTINUED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
3) INVESTMENT ADVISORY AGREEMENT (CONTINUED):
The Adviser is authorized to charge the Growth Fund and Opportunity Fund a
management fee of 1.30%, and the Fixed Income Fund and Municipal Income
Fund a management fee of 1.15%, of the average daily net assets of the
Funds, respectively, and has waived 0.30% of these fees, INTENDING THESE
FEE WAIVERS TO BE PERMANENT, although the Adviser has the right to remove
these fee waivers anytime after December 31, 1996. Along with the above
described waiver, the Adviser waived additional fees on the Municipal
Income Fund during the period January 1, through December 31, 1995.
4) RELATED PARTY TRANSACTIONS:
All officers and one trustee of the Johnson Mutual Funds Trust are
employees of Johnson Investment Counsel, Inc., the Adviser. Each outside
trustee has received compensation during the 12 months ended December 31,
1995, of $3,000 for his responsibilities as trustee and has received no
additional compensation.
The Adviser is not a registered broker-dealer of securities and thus does
not receive commissions on trades made on behalf of the Funds. The
beneficial ownership, either directly or indirectly, of more than 25% of
the voting securities of a Fund creates a presumption of control of the
Fund, under Section 2(a)(9) of the Investment Company Act of 1940. As of
December 31, 1995, Johnson Investment Counsel, Inc. and entities which the
Adviser could be deemed to control or have discretion over owned in
aggregate more than 25% of the Growth Fund and the Fixed Income Fund. As
of December 31, 1995, the Adviser had discretion on over 25% of the
Opportunity Fund, and Timothy E. Johnson and Janet L. Johnson jointly
owned more than 25% of the Municipal Income Fund.
5) CAPITAL SHARE TRANSACTIONS:
As of December 31, 1995, there were an unlimited number of capital shares
of no par value authorized. Each Fund records purchases of its capital
shares at the daily net asset value next determined after receipt of a
shareholder's check or wire and application in proper form. Redemptions
are recorded at the net asset value next determined following receipt of a
shareholder's written or telephone request in proper form.
SHARE TRANSACTIONS FOR THE PERIOD JANUARY 1 - DECEMBER 31, 1995:
<TABLE>
<CAPTION> FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Shares Sold to Investors 186,570 400,816 237,622 51,750
Shares Issued on Reinvestment Dividends 9,629 316 45,865 4,285
---------- ---------- ---------- ----------
Subtotal 196,199 401,132 283,487 56,035
Shares Redeemed (35,685) (19,625) (152,299) (11,720)
---------- ---------- ---------- ----------
Net Increase 160,514 381,507 131,188 44,315
SHARES OUTSTANDING:
December 31, 1994 (beginning of period) 628,025 400,591 877,307 101,280
DECEMBER 31, 1995 (END OF PERIOD) 788,539 782,098 1,008,495 145,595
</TABLE>
6) PURCHASES AND SALES OF SECURITIES:
During the 12 months ended December 31, 1995:
GROWTH FUND: Purchases of investment securities other than U.S. Government
obligations and short term investments aggregated $9,556,067 and sales of
investment securities other than U.S. Government obligations and short term
investments aggregated $6,537,993. There were no purchases or sales of
U.S. Government obligations in the Fund.
25
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS, CONTINUED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
6) PURCHASES AND SALES OF SECURITIES, CONTINUED:
During the 12 months ended December 31, 1995:
OPPORTUNITY FUND: Purchases of investment securities other than U.S.
Government obligations and short term investments aggregated $13,755,521
and sales of investment securities other than U.S. Government obligations
and short term investments aggregated $6,736,652. There were no purchases
or sales of U.S. Government obligations in the Fund.
FIXED INCOME FUND: Purchases of investment securities other than U.S.
Government obligations and short term investments aggregated $417,168 and
sales of investment securities other than U.S. Government obligations and
short term investments aggregated $187,416. Purchases of U.S. Government
obligations aggregated $2,062,346 and sales of U.S. Government obligations
aggregated $540,031.
MUNICIPAL INCOME FUND: Purchases of investment securities other than U.S.
Government obligations and short term investments aggregated $626,749 and
sales of investment securities other than U.S. Government obligations and
short term investments aggregated $150,878. There were no purchases or
sales of U.S. Government obligations in the Fund.
7) SECURITY TRANSACTIONS:
For Federal income tax purposes, the cost of investments owned on December
31, 1995 was the same as identified cost. As of December 31, 1995 the
composition of unrealized appreciation (the excess of value over tax cost)
and depreciation (the excess of tax cost over value) was as follows:
<TABLE>
<CAPTION>
NET
APPRECIATION
FUND APPRECIATION (DEPRECIATION) (DEPRECIATION)
---- ------------ ------------ ------------
<S> <C> <C> <C>
Growth $ 2,831,568 ($162,295) $ 2,669,273
Opportunity $ 2,522,511 ($403,367) $ 2,119,144
Fixed Income $ 430,936 ($ 17,865) $ 413,071
Municipal Income $ 64,739 ($ 125) $ 64,614
</TABLE>
8) FINANCIAL INSTRUMENTS DISCLOSURE:
There are no reportable financial instruments that have any off balance
sheet risk as of December 31, 1995.
26
<PAGE>
MCCURDY AND ASSOCIATES CPA'S, INC.
27955 CLEMENS ROAD
WESTLAKE, OHIO 44145
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
Johnson Mutual Funds Trust
We have audited the statements of assets and liabilities including the
portfolios of investments, of the Johnson Mutual Funds Trust (comprising,
respectively, the Growth Fund, the Fixed Income Fund, the Municipal Income Fund,
and the Opportunity Fund) as of December 31, 1995, and the related statements of
operations, the statements of changes in net assets, and the financial
highlights for each of the periods indicated. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian and brokers (and the
application of alternative auditing procedures where confirmations from brokers
were not received). An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects. the financial position of
each of the respective portfolios constituting the Johnson Mutual Funds Trust as
of December 31, 1995, the results of their operations, the changes in their net
assets, and the financial highlights for the periods indicated in conformity
with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
January 17, 1996
27
<PAGE>
- --------------------------------------------------------------------------------
CUSTODIAN AND TRANSFER AGENT
- --------------------------------------------------------------------------------
The Provident Bank
Three East Fourth Street, Cincinnati, Ohio 45202
(513) 579-2784
(800) 424-2295
- --------------------------------------------------------------------------------
AUDITORS
- --------------------------------------------------------------------------------
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, Ohio 44145
- --------------------------------------------------------------------------------
28
<PAGE>
- --------------------------------------------------------------------------------
TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Timothy E. Johnson Trustee, President
John W. Craig Trustee
Ronald H. McSwain Trustee
Kenneth S. Shull Trustee
Dale H. Coates Vice President
Richard T. Miller Vice President
Dianna J. Rosenberger CFO, Treasurer
David C. Tedford Secretary
- --------------------------------------------------------------------------------
29
<PAGE>
JOHNSON MUTUAL FUNDS TRUST
5556 CHEVIOT ROAD, CINCINNATI, OHIO 45247
(513) 385-4001 (800) 541-0170
- --------------------------------------------------------------------------------
INVESTMENT ADVISER
- --------------------------------------------------------------------------------
JOHNSON INVESTMENT COUNSEL, INC.
5556 CHEVIOT ROAD, CINCINNATI, OHIO 45247
/ / Johnson Investment Counsel, Inc. is a Cincinnati-based investment advisory
firm that has been in business since 1965, managing stock, bond and
balanced portfolios for individuals, corporations, trusts, endowments,
foundations, and retirement funds.
/ / Johnson Investment Counsel, Inc. currently employs 35 individuals,
including a professional staff of 14, 7 of whom have earned the Chartered
Financial Analyst designation (CFA), 7 professionals with graduate degrees,
and a Certified Public Accountant.
/ / The firm is registered with the Securities and Exchange Commission as an
independent fee-based investment adviser.
/ / The Adviser adheres to the long-term quality growth approach to stock and
bond investing, to enhance portfolio returns as well as preserve capital.
This report is authorized for distribution to prospective investors only when
accompanied or preceded by the Trust's prospectus, which illustrates each
Fund's objectives, management fees, and other information that may be helpful
in making an investment decision.
