<PAGE>
[LOGO]
- - --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT DATED JUNE 30, 1996
- - --------------------------------------------------------------------------------
[ ] 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>
- - --------------------------------------------------------------------------------
TABLE OF CONTENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
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
Custodian, Transfer Agent, and Auditor . . . . . . . . . . . . 27
Trustees and Officers . . . . . . . . . . . . . . . . . . . . . 28
Investment Adviser. . . . . . . . . . . . . . . . . . . . . . . 29
- - --------------------------------------------------------------------------------
<PAGE>
- - --------------------------------------------------------------------------------
OUR MESSAGE TO YOU
- - --------------------------------------------------------------------------------
August 25, 1996
Dear Shareholder:
Falling interest rates and rising corporate profits were the major reasons for
the huge stock market increases in 1995. We have seen a tempering of these
factors thus far in 1996, with the rise in interest rates, and corporate profits
increasing at a slower pace than 1995. None-the-less, the stock market
performed well during the first half of 1996, as illustrated in the following
pages of the June 30, 1996, semi-annual report. The GROWTH FUND returned 7.8%
for the first six months in 1996, and the OPPORTUNITY FUND gained 9.2%. Both
Funds have maintained their positive performance, even through the recent stock
market fluctuations that have occurred in July and August.
The bond market declined due to increased interest rates which pushed bond
values down. Thus, the FIXED INCOME FUND returned -1.4% for the first half of
1996. The "income" level, or yield, on the Fund, despite the decline in value,
remained over 6.0% through June 30, 1996. The municipal market did not weaken
as much as the taxable bond market. Thus, the MUNICIPAL INCOME FUND experienced
a positive return of 0.1% for the first six months of 1996.
1996 begins the thirty-second year that Johnson Investment Counsel, Inc., the
Funds' Adviser, has been in business. Through all of the years of growth and
change in the financial services industry, we have steadfastly followed our
mission of providing quality and objective advice to our clients while adhering
to the highest ethical and professional standards. We appreciate your continued
confidence in our firm and extend our gratitude to you, the shareholders and
clients who have allowed us to serve you over the years.
As always, please call if you have any questions or comments about the enclosed
report.
Sincerely,
/s/ Tim Johnson
Timothy E. Johnson, President
- - --------------------------------------------------------------------------------
1
<PAGE>
- - --------------------------------------------------------------------------------
GROWTH FUND, PERFORMANCE REVIEW JUNE 30, 1996
- - --------------------------------------------------------------------------------
$10,000 INITIAL INVESTMENT SINCE INCEPTION*
GROWTH S&P
FUND 500 INDEX
------ ---------
1/4/93 $10,000.00 $10,000.00
1/15/93 $10,060.00 $10,018.72
1/31/93 $9,953.33 $10,089.39
2/16/93 $9,793.33 $9,993.02
2/26/93 $9,933.33 $10,226.29
3/15/93 $10,033.33 $10,422.10
3/31/93 $10,240.00 $10,437.80
4/15/93 $10,219.93 $10,375.35
4/30/93 $10,079.48 $10,198.51
5/17/93 $10,153.05 $10,215.83
5/28/93 $10,306.88 $10,456.80
6/14/93 $10,186.49 $10,412.38
6/30/93 $10,240.00 $10,491.16
7/15/93 $10,105.88 $10,473.07
7/30/93 $9,951.64 $10,460.08
8/16/93 $10,072.36 $10,571.72
8/31/93 $10,226.59 $10,845.44
9/15/93 $10,166.23 $10,812.05
9/30/93 $10,166.23 $10,761.99
10/15/93 $10,455.54 $11,021,71
10/29/93 $10,495.91 $10,994.37
11/15/93 $10,408.45 $10,910.37
11/30/93 $10,327.71 $10,876.15
12/15/93 $10,354.62 $10,889.23
12/31/93 $10,596.78 $11,009.84
1/17/94 $10,670.97 $11,183.85
1/31/94 $10,792.39 $11,392.55
2/14/94 $10,643.99 $11,189.88
2/28/94 $10,724.94 $11,074.84
3/15/94 $10,664.23 $11,084.14
3/31/94 $10,246.02 $10,592.41
4/15/94 $10,130.98 $10,615.65
4/30/94 $10,158.05 $10,741.70
5/16/94 $10,056.83 $10,602.30
5/31/94 $10,212.19 $10,902.32
6/15/94 $10,320.47 $11,014.04
6/30/94 $10,009.16 $10,636.90
7/15/94 $10,111.09 $10,912.18
7/30/94 $10,165.45 $10,998.17
8/16/94 $10,240.19 $11,173.31
8/31/94 $10,478.02 $11,438.28
9/15/94 $10,457.64 $11,436.10
9/30/94 $10,233.40 $11,156.85
10/17/94 $10,356.20 $11,324.53
10/31/94 $10,383.49 $11,416.61
11/15/94 $10,294.80 $11,253.32
11/30/94 $10,062.84 $10,992.56
12/15/94 $10,069.66 $11,046.44
12/30/94 $10,149.85 $11,155.23
1/16/95 $10,362.31 $11,409.39
1/31/95 $10,376.02 $11,444.39
2/15/95 $10,698.13 $11,810.46
2/28/95 $10,759.81 $11,890.62
3/15/95 $10,842.05 $12,017.91
3/31/95 $10,979.12 $12,241.62
4/17/95 $11,047.91 $12,386.21
4/28/95 $11,240.52 $12,602.14
5/15/95 $11,515.69 $12,948.16
5/31/95 $11,378.11 $13,105.63
6/15/95 $11,715.18 $13,211.44
6/30/95 $11,825.25 $13,410.07
7/14/95 $12,128.99 $13,793.34
7/31/95 $12,163.51 $13,854.74
8/15/95 $12,053.06 $13,790.65
8/31/95 $12,163.51 $13,889.65
9/15/95 $12,529.38 $14,435.46
9/29/95 $12,487.96 $14,475.87
10/15/95 $12,508.74 $14,453.94
10/31/95 $12,640.34 $14,424.15
11/15/95 $12,993.58 $14,758.98
11/30/95 $13,277.55 $15,057.40
12/15/95 $13,388.37 $15,345.64
12/29/95 $13,358.55 $15,347.44
1/16/96 $13,167.31 $15,171.09
1/31/96 $13,733.95 $15,869.26
2/15/96 $13,967.68 $16,274.12
2/29/96 $13,882.69 $16,016.27
3/15/96 $13,939.35 $16,060.98
3/28/96 $14,059.76 $16,170.46
4/15/96 $13,946.21 $16,108.14
4/30/96 $14,152.03 $16,408.85
5/16/96 $14,293.97 $16,705.15
5/31/96 $14,357.85 $16,832.08
6/14/96 $14,322.36 $16,768.14
6/28/96 $14,393.34 $16,896.24
* 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 June 30, 1996:
AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
------------------- ----------
1/4/93-
6 Months 1 Year 3 Year 6/30/96
-------- ------ ------ -------
Growth Fund 7.75% 21.72% 12.02% 43.93%
S&P 500 Index 10.10% 26.00% 17.22% 68.96%
(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). The Fund's performance is after all
fees. The Index does not include any fees.
HOW DID THE GROWTH FUND PERFORM RELATIVE TO THE MARKET?
The return on the Growth Fund for the first six months of 1996 was 7.8%, as
compared to the Standard & Poors (S&P) 500 Index return of 10.1% during the same
period. The Growth Fund invests in stocks that have higher than average
earning's growth potential and also are of higher than average quality. The
growth bias of the fund was modestly helpful in the period based on returns
published for various "growth" indexes. However, the quality bias of the fund
continued to have a negative impact. For the six months ended June 30, 1996,
stocks, with a quality rank of B+ or better by S&P in a universe of 1,400
stocks, returned an average of 7.9%. Those stocks ranked B or lower by S&P had
a return of 13.3%.
The lower performance of higher quality stocks in the past six months is not a
recent phenomenon. The peak in relative performance for the higher quality
universe occurred in late 1990 with a general deterioration in relative
performance since then. The lower performance of higher quality stocks was not
unexpected for a period of time following the recession in 1990. What is
surprising, however, is the continued underperformance of this sector of the
equity market. Although economic growth has moderated in the last couple of
years, investors have been enthusiastic about the potential returns available
from stocks. Typically, slower Gross Domestic Product (GDP) growth will cause
investors to become more cautious and money will flow to higher quality stocks.
That has not happened yet, even though GDP has slowed. We believe that
eventually money flow will shift into higher quality stocks and relative
performance of the Growth Fund will improve.
---------------------------------------------------------------------------
GROWTH FUND OBJECTIVE: LONG-TERM CAPITAL GROWTH
PRIMARY ASSET CATEGORY: STOCKS OF LARGER-SIZED QUALITY GROWTH COMPANIES
---------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
2
<PAGE>
- - --------------------------------------------------------------------------------
OPPORTUNITY FUND, PERFORMANCE REVIEW JUNE 30, 1996
- - --------------------------------------------------------------------------------
$10,000 INITIAL INVESTMENT SINCE INCEPTION*
OPPORTUNITY S&P
FUND MID-CAP INDEX
----------- -------------
5/16/94 $10,000 $10,000
5/31/94 $10,307 $10,368
6/15/94 $10,353 $10,455
6/30/94 $9,980 $10,012
7/15/94 $10,333 $10,356
7/31/94 $10,180 $10,350
8/15/94 $10,280 $10,560
8/31/94 $10,647 $10,892
9/15/94 $10,633 $10,904
9/30/94 $10,393 $10,688
10/15/94 $10,407 $10,712
10/31/94 $10,620 $10,805
11/15/94 $10,607 $10,625
11/30/94 $10,313 $10,319
12/15/94 $10,320 $10,229
12/31/94 $10,499 $10,415
1/16/95 $10,606 $10,631
1/31/95 $10,466 $10,523
2/15/95 $10,820 $11,020
3/1/95 $10,760 $11,027
3/15/95 $10,907 $11,149
3/31/95 $11,094 $11,268
4/17/95 $11,215 $11,398
5/1/95 $11,335 $11,458
5/15/95 $11,663 $11,762
5/30/95 $11,622 $11,678
6/16/95 $12,024 $12,090
6/30/95 $12,291 $12,252
7/14/95 $12,592 $12,755
7/31/95 $12,646 $12,891
8/15/95 $12,545 $12,872
8/31/95 $12,632 $13,129
9/15/95 $13,087 $13,502
9/28/95 $12,880 $13,448
10/16/95 $12,793 $13,276
10/31/95 $12,499 $13,102
11/15/95 $12,699 $13,329
11/30/95 $12,947 $13,671
12/15/95 $12,906 $13,296
12/31/95 $13,152 $13,638
1/16/96 $12,678 $13,070
1/31/96 $13,443 $13,836
2/15/96 $13,768 $14,270
2/29/96 $13,789 $14,305
3/15/96 $13,829 $14,402
3/29/96 $14,046 $14,477
4/15/96 $13,978 $14,353
4/30/96 $14,466 $14,920
5/15/96 $14,764 $15,205
5/31/96 $14,683 $15,121
6/14/96 $14,520 $15,049
6/28/96 $14,364 $14,894
* 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 flucuate and be worth more or less
than their original cost at the time of redemption.
For periods ending June 30, 1996:
AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
------------------- ----------
5/16/94- 5/16/94-
6 Months 1 Year 6/30/96 6/30/96
-------- ------ ------- -------
Opportunity Fund 9.22% 16.87% 18.60% 43.64%
S&P MidCap Index 9.22% 21.56% 20.64% 48.94%
(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). The Fund's performance is after all
fees. The Index does not include any fees.
HOW DID THE OPPORTUNITY FUND PERFORM RELATIVE TO THE MARKET?
The Opportunity Fund returned 9.2% in the first half of 1996, a return identical
to the Standard & Poors Midcap Index. Interestingly, higher quality stocks
performed better than lower quality stocks in the middle capitalization (midcap)
sector of the equity market, a relationship that is just opposite of that in the
larger capitalization sector. The quality characteristics of the Opportunity
Fund are similar to those of the S&P Midcap Index, averaging a B+ ranking by
Standard & Poors.
The midcap sector of the equity market had significantly lower performance than
the large cap sector in 1995. For the first half of 1996, returns in the two
sectors were comparable. Relative to historical relationships, midcap stocks
appear to be a better value today than large capitalization stocks. Larger,
more mature companies are more sensitive to changes in the general state of the
economy. Smaller companies, on the other hand, often have niche products or
services and can maintain good revenue and earning's growth in the face of a
slowing economy. Since most economists are forecasting slower economic growth,
the valuation disparity between mid to large capitalization stocks should
correct itself, as the relative performance of the midcap sector improves.
- - --------------------------------------------------------------------------------
OPPORTUNITY FUND OBJECTIVE: LONG-TERM CAPITAL APPRECIATION
PRIMARY ASSET CATEGORY: STOCKS OF MEDIUM/SMALL-SIZED GROWTH COMPANIES
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
3
<PAGE>
- - --------------------------------------------------------------------------------
FIXED INCOME FUND, PERFORMANCE REVIEW JUNE 30,1996
- - --------------------------------------------------------------------------------
FIXED LEHMAN
INCOME INTERMEDIATE G/C
FUND INDEX
------ ----------------
1/4/93 $10,000 $10,000
1/15/93 $10,060 $10,054
1/29/93 $10,173 $10,152
2/16/93 $10,227 $10,194
2/26/93 $10,387 $10,312
3/15/93 $10,333 $10,272
3/31/93 $10,413 $10,353
4/15 $10,520 $10,429
4/30 $10,467 $10,436
5/14 $10,500 $10,447
5/28 $10,433 $10,413
6/15 $10,581 $10,505
6/30/93 $10,694 $10,576
7/15 $10,769 $10,627
7/30 $10,721 $10,602
8/16 $10,816 $10,672
8/31 $10,985 $10,770
9/15 $11,046 $10,797
9/30/93 $11,060 $10,815
10/15/93 $11,210 $10,911
10/29/93 $11,087 $10,844
11/15/93 $10,971 $10,797
11/30/93 $10,923 $10,783
12/15/93 $10,944 $10,805
12/31/93 $10,954 $10,833
1/17/94 $11,017 $10,884
1/31/94 $11,093 $10,953
2/15/94 $10,961 $10,863
2/28/94 $10,830 $10,791
3/15/94 $10,712 $10,692
3/31/94 $10,580 $10,613
4/15/94 $10,468 $10,558
4/29/94 $10,426 $10,541
5/16/94 $10,356 $10,545
5/31/94 $10,419 $10,548
6/15/94 $10,510 $10,629
6/30/94 $10,405 $10,549
7/14/94 $10,483 $10,620
7/29/94 $10,582 $10,701
8/16/94 $10,511 $10,685
8/31/94 $10,597 $10,735
9/16/94 $10,462 $10,656
9/30/94 $10,419 $10,636
10/17/94 $10,462 $10,672
10/31/94 $10,397 $10,634
11/16/94 $10,325 $10,583
11/30/94 $10,340 $10,586
12/15/94 $10,390 $10,606
12/31/94 $10,392 $10,624
1/16/95 $10,553 $10,664
1/31/95 $10,575 $10,803
2/15/95 $10,692 $10,861
2/28/95 $10,853 $11,027
3/15/95 $10,955 $11,099
3/31/95 $10,926 $11,090
4/17/95 $11,067 $11,216
4/28/95 $11,074 $11,227
5/15/95 $11,326 $11,420
5/31/95 $11,519 $11,566
6/15/95 $11,586 $11,633
6/30/95 $11,586 $11,644
7/14/95 $11,653 $11,706
7/31/95 $11,548 $11,645
8/15/95 $11,511 $11,607
8/31/95 $11,683 $11,751
9/15/95 $11,789 $11,821
8/29/95 $11,774 $11,836
10/16/95 $11,903 $11,950
10/31/95 $11,911 $11,968
11/15/95 $11,956 $12,015
11/30/95 $12,093 $12,126
12/15/95 $12,116 $12,150
12/29/95 $12,231 $12,253
1/16/96 $12,254 $12,283
1/31/96 $12,332 $12,358
2/15/96 $12,347 $12,381
2/29/96 $12,146 $12,213
3/15/96 $11,969 $12,075
3/28/96 $12,046 $12,150
4/15/96 $12,015 $12,129
4/30/96 $11,960 $12,107
5/16/96 $11,983 $12,129
5/31/96 $11,921 $12,098
6/14/96 $11,905 $12,099
6/28/96 $12,061 $12,227
* 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 June 30, 1996: AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
----------------- ----------
1/4/93-
6 MONTHS 1 YEAR 3 YEAR 6/30/96
-------- ------ ------- -------
Fixed Income Fund (1.39%) 4.11% 4.09% 20.61%
Lehman Intermediate
Government Corporate Bond Index (0.21%) 5.01% 4.95% 22.27%
(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). The Fund's
performance is after all fees. The Index does not include any fees.
HOW DID THE FIXED INCOME FUND PERFORM RELATIVE TO THE MARKET?
The Fixed Income Fund returned -1.4% during the first six months of 1996,
as compared to -0.2% for the Lehman Intermediate Government Corporate Bond
Index. Rising interest rates during the first half of 1996 reduced the
market price for most high quality fixed income securities, such as those
that the Fund holds. This decline in value more than offset the income
earned and resulted in a decline in the total rate of return for both the
Fund and the Index. In contrast to the decline in value, rising interest
rates had a positive influence on the Fund's yield, which increased to
6.2%, a rate much higher than the first six months of 1995.
Similar to most high quality taxable bond funds, the Fixed Income Fund
returned less than the Index for the first half of the year due to the
slightly longer weighted average maturity of the Fund as compared to the
Index. The longer average maturity structure resulted in a somewhat
greater price reduction for the Fund. Another factor in the Fund's lower
performance was that the Index does not incorporate a fee, which is built
into the performance of the Fixed Income Fund and other mutual funds. On
the positive side, the Fund's larger concentration of high quality
corporate bonds helped boost performance, as corporates continued to
perform better than government securities.
- - --------------------------------------------------------------------------------
FIXED INCOME FUND OBJECTIVE: INCOME AND CAPITAL PRESERVATION
PRIMARY ASSET CATEGORY: INVESTMENT GRADE GOVERNMENT/CORPORATE BONDS
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
4
<PAGE>
- - --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PERFORMANCE REVIEW JUNE 30, 1996
- - --------------------------------------------------------------------------------
MUNICIPAL LEHMAN
INCOME 5 YR GO
FUND INDEX
--------- -------
5/16/94 $10,000 10,000
5/31/94 $10,067 10,092
6/30/94 $10,046 10,069
7/31/94 $10,180 10,179
8/31/94 $10,227 10,227
9/30/94 $10,133 10,150
10/31/94 $10,045 10,093
11/30/94 $9,950 10,029
12/31/94 $10,081 10,117
1/31/95 $10,266 $10,214
2/28/95 $10,423 $10,363
3/31/95 $10,506 $10,528
4/30/95 $10,519 $10,556
5/31/95 $10,720 $10,787
6/30/95 $10,713 $10,797
7/31/95 $10,811 $10,947
8/31/95 $10,930 $11,058
9/29/95 $10,971 $11,092
10/31/95 $11,049 $11,145
11/30/95 $11,148 $11,234
12/29/95 $11,178 $11,295
1/31/96 $11,278 $11,430
2/29/96 $11,235 $11,392
3/29/96 $11,153 $11,332
4/30/96 $11,124 $11,315
5/31/96 $11,110 $11,301
6/28/96 $11,185 $11,381
* 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 June 30, 1996: AVERAGE ANNUAL
TOTAL RETURNS (a) CUMULATIVE
------------------ ----------
5/16/94- 5/16/94-
6 MONTHS 1 YEAR 6/30/96 6/30/96
-------- ------ -------- ----------
Municipal Income Fund 0.07% 4.41% 5.42% 11.85%
Lehman Five Year General
Obligation Municipal Bond Index 0.76% 5.41% 6.28% 13.81%
(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). The Fund's
performance is after all fees. The Index does not include any fees.
HOW DID THE MUNICIPAL INCOME FUND PERFORM RELATIVE TO THE MARKET?
The Municipal Income Fund returned 0.1% in the first half of 1996, as
compared to 0.8% for the Lehman Five Year General Obligation Municipal Bond
Index. Rising interest rates had a negative impact on the market prices of
municipal securities. The decline in market value of securities was offset
by the income earned on those securities, resulting in a slightly positive
rate of total return for both the Fund and the Index. The Fund had a
slightly lower return than the Index due to the longer weighted average
maturity of the bonds in the Fund, and the advisory fee assessed on the
Fund and not on the Index.
As it became apparent to investors that the "flat tax" would not become a
reality in the near term, municipal bonds experienced better performance
than their taxable bond counterparts during the first half of 1996.
Municipals earned nearly 1.5% greater return than taxable bonds before tax,
with a greater difference depending on the individual's tax bracket. This
superior performance by municipals offset the underperformance of the
previous year.
- - --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND OBJECTIVE: TAX-FREE INCOME AND CAPITAL PRESERVATION
PRIMARY ASSET CATEGORY: INTERMEDIATE-TERM OHIO MUNICIPAL BONDS
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
5
<PAGE>
- - --------------------------------------------------------------------------------
GROWTH FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
COMMON STOCKS
NUMBER
OF SHARES DOLLAR VALUE
--------- ------------
AUTO PARTS
Echlin Incorporated 11,500 435,562
-----------
TOTAL AUTO PARTS - 2.3% . . . . . . . . . . . . . . . . $ 435,562
CHEMICALS
Air Products & Chemicals, Incorporated 6,800 392,700
-----------
TOTAL CHEMICALS - 2.0% . .. . . . . . . . . . . . . . . $ 392,700
COMMUNICATIONS EQUIPMENT
Motorola, Incorporated 5,100 320,663
-----------
TOTAL COMMUNICATIONS EQUIPMENT - 1.7% . . . . . . . . . $ 320,663
COMPUTER SOFTWARE
Computer Associates International, Incorporated 6,200 441,750
EMC Corporation* 20,000 372,500
Electronic Data Systems 13,700 736,375
-----------
TOTAL COMPUTER SOFTWARE - 8.1% . . . .. . . . . . . . . $ 1,550,625
COMPUTER SYSTEMS
Hewlett-Packard Company 8,200 816,925
-----------
TOTAL COMPUTER SYSTEMS - 4.3% . . . . . . . . . . . . . $ 816,925
ELECTRIC UTILITIES
TECO Energy, Incorporated 16,000 404,000
-----------
TOTAL ELECTRICAL UTILITIES - 2.1% . . . . . . . . . . . $ 404,000
ELECTRICAL EQUIPMENT
General Electric Company 8,700 752,550
-----------
TOTAL ELECTRICAL EQUIPMENT - 3.9% . . . . . . . . . . . $ 752,550
FINANCIAL - INSURANCE
General RE Corporation 5,600 852,600
-----------
TOTAL FINANCIAL - INSURANCE - 4.4%. . . . . . . . . . . $ 852,600
FINANCIAL - REGIONAL BANKS
Corestates Financial Corporation 9,900 381,150
Fifth Third Bancorp 8,000 432,000
Regions Financial Corporation 6,500 303,875
-----------
TOTAL FINANCIAL - REGIONAL BANKS - 5.8% . . . . . . . . $ 1,117,025
FINANCIAL - MONEY CENTER BANKS
Citicorp 5,000 413,125
-----------
TOTAL FINANCIAL - INSURANCE - 2.2%. . . . . . . . . . . $ 413,125
FOODS AND FOOD RETAILERS
Albertson's, Inc. 10,300 426,163
Sara Lee Corporation 12,500 404,687
Sysco Corporation 12,000 411,000
-----------
TOTAL FOODS AND FOOD RETAILERS - 6.5% . . . . . . . . . $ 1,241,850
* NON-DIVIDEND PAYING SECURITY.
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
- - --------------------------------------------------------------------------------
GROWTH FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
COMMON STOCKS
NUMBER
OF SHARES DOLLAR VALUE
--------- ------------
HEALTH CARE - DRUGS
Mylan Laboratories 20,500 353,625
Pfizer, Incorporated 5,300 378,287
Schering-Plough Corporation 13,320 835,830
Smithkline Beecham ADR 7,700 418,688
-----------
TOTAL HEALTH CARE - DRUGS - 10.3% . . . . . . . . . . . $ 1,986,430
HEALTH CARE - SERVICES
Columbia/HCA Healthcare Corporation 7,600 405,650
-----------
TOTAL HEALTH CARE - SERVICES - 2.1% . . . . . . . . . . $ 405,650
HOUSEHOLD PRODUCTS
Duracell International, Incorporated 8,000 345,000
Procter & Gamble Company 9,000 815,625
-----------
TOTAL HOUSEHOLD PRODUCTS - 6.0% . . . . . . . . . . . . $ 1,160,625
INDUSTRIAL SERVICES
Cintas Corporation 3,400 181,900
-----------
TOTAL INDUSTRIAL SERVICES - 1.0%. . . . . . . . . . . . $ 181,900
MANUFACTURING
Dover Corporation 8,800 405,900
Johnson Controls, Incorporated 1,600 111,200
-----------
TOTAL MANUFACTURING - 2.7%. . . . . . . . . . . . . . . $ 517,100
MEDIA AND PUBLISHING
Donnelley (R.R.) & Sons Company 8,300 289,463
-----------
TOTAL MEDIA AND PUBLISHING - 1.5% . . . . . . . . . . . $ 289,463
METALS - STEEL
Worthington Industries 15,000 313,125
-----------
TOTAL METALS - STEEL - 1.6% . . . . . . . . . . . . . . $ 313,125
NATURAL GAS
Enron Corporation 10,200 416,925
-----------
TOTAL NATURAL GAS - 2.2%. . . . . . . . . . . . . . . . $ 416,925
PAPER PRODUCTS
Sonoco Products Company 14,525 412,147
-----------
TOTAL PAPER PRODUCTS - 2.1% . . . . . . . . . . . . . . $ 412,147
PETROLEUM
Mobil Corporation 6,200 695,175
Royal Dutch Petroleum Company (Netherlands) 2,400 369,000
-----------
TOTAL PETROLEUM - 5.5%. . . . . . . . . . . . . . . . . $ 1,064,175
RESTAURANTS
McDonald's Corporation 17,000 794,750
-----------
TOTAL RESTAURANTS - 4.1%. . . . . . . . . . . . . . . . $ 794,750
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
7
<PAGE>
- - --------------------------------------------------------------------------------
GROWTH FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
COMMON STOCKS
NUMBER
OF SHARES DOLLAR VALUE
--------- ------------
RETAILING
May Department Stores Company 7,000 306,250
Sherwin Williams Company, (The) 9,300 432,450
Walgreen Company 11,000 368,500
-----------
TOTAL RETAILING - 5.8%. . . . . . . . . . . . . . . . . $ 1,107,200
TELECOMMUNICATION SERVICES
AT&T Corporation 6,200 384,400
GTE Corporation 18,866 844,253
-----------
TOTAL TELECOMMUNICATION SERVICES - 6.4% . . . . . . . . $ 1,228,653
TRANSPORTATION
Burlington Northern, Incorporated 5,100 412,462
-----------
TOTAL TRANSPORTATION - 2.1% . . . . . . . . . . . . . . $ 412,462
TOTAL COMMON STOCKS - 96.7% . . . . . . . . . . . . . . . . . . $18,588,231
(COMMON STOCK IDENTIFIED COST $15,017,698)
CASH EQUIVALENTS
Dreyfus U.S. Treasury Prime Money Market 637,002
-----------
TOTAL CASH EQUIVALENTS - 3.3. . . . . . . . . . . . . . $ 637,002
(CASH EQUIVALENTS IDENTIFIED COST $637,002)
TOTAL PORTFOLIO VALUE - 100.0%. . . . . . . . . . . . . . . . . $19,225,233
(TOTAL PORTFOLIO IDENTIFIED COST $15,654,700)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . $ (22,697)
TOTAL NET ASSETS $19,202,536
-----------
-----------
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
- - --------------------------------------------------------------------------------
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
COMMON STOCKS
NUMBER
OF SHARES DOLLAR VALUE
--------- ------------
AUTO PARTS
Echlin, Incorporated 11,200 424,200
----------
TOTAL AUTO PARTS - 2.1%. . . . . . . . . . . . . . . $ 424,200
BEVERAGES
Whitman Corporation 14,000 337,750
----------
TOTAL BEVERAGES - 1.7% . . . . . . . . . . . . . . . $ 337,750
BUILDING MATERIALS
Medusa Corporation 13,000 403,000
----------
TOTAL BUILDING MATERIALS - 2.0% . . . . . . . . . . $ 403,000
CHEMICALS
Cabot Corporation 14,000 343,000
M.A. Hanna Company 14,325 299,034
Morton International, Incorporated 6,000 223,500
----------
TOTAL CHEMICALS - 4.3% . . . . . . . . . . . . . . . $ 865,534
COMMUNICATIONS EQUIPMENT
Amphenol Corporation, Class A* 15,000 345,000
Cabletron Systems, Incorporated* 6,500 446,063
Belden, Incorporated 17,000 510,000
----------
TOTAL COMMUNICATIONS EQUIPMENT - 6.4% . . . . . . . $ 1,301,063
COMPUTER SOFTWARE
Keane, Incorporated* 7,650 282,093
Sterling Software, Incorporated* 6,000 462,000
Sungard Data Systems, Incorporated* 10,000 401,250
----------
TOTAL COMPUTER SOFTWARE - 5.6% . . . . . . . . . . . $ 1,145,343
COMPUTER SYSTEMS
EMC Corporation* 13,500 251,438
Sequent Computer Systems, Incorporated* 13,500 182,250
----------
TOTAL COMPUTER SYSTEMS - 2.1% . . . . . . . . . . . . $ 433,688
ELECTRIC UTILITIES
Illinova Corporation 15,000 431,250
TECO Energy, Incorporated 17,400 439,350
Wisconsin Energy Corporation 13,800 398,475
----------
TOTAL ELECTRIC UTILITIES - 6.2% . . . . . . . . . . . $ 1,269,075
ELECTRONICS - SEMICONDUCTORS
Adaptec, Inc.* 6,000 284,250
Silicon Valley Group, Incorporated* 12,500 234,375
Xilinx, Incorporated* 9,000 285,750
----------
TOTAL ELECTRONICS - SEMICONDUCTORS - 4.0% . . . . . . $ 804,375
ENERGY SERVICES
Smith International, Incorporated* 15,000 451,875
----------
TOTAL ENERGY SERVICES - 2.2% . . . . . . . . . . . . $ 451,875
FINANCIAL - BROKERAGE
A. G. Edwards, Incorporated 7,300 198,013
----------
TOTAL FINANCIAL - BROKERAGE - 1.0% . . . . . . . . . $ 198,013
* NON-DIVIDEND PAYING SECURITY.
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
- - --------------------------------------------------------------------------------
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
COMMON STOCKS
NUMBER OF SHARES DOLLAR VALUE
---------------- ------------
FINANCIAL - INSURANCE
AON Corporation 6,000 304,500
Reliastar Financial Corporation 12,000 517,500
Transatlantic Holdings, Inc. 7,500 525,937
----------
TOTAL FINANCIAL - INSURANCE - 6.6% . . . . . . . . . $ 1,347,937
FINANCIAL - REGIONAL BANKS
Bank of New York Co., Incorporated 3,900 199,875
First Union Corp 5,940 361,597
Southtrust Corporation 16,000 450,000
----------
TOTAL FINANCIAL - REGIONAL BANKS - 5.0% . . . . . . . $ 1,011,472
FOODS AND FOOD RETAILERS
Hannaford Brothers Company 7,800 254,475
Tootsie Roll Industries 10,000 356,250
----------
TOTAL FOODS AND FOOD RETAILERS - 3.0% . . . . . . . . $ 610,725
HEALTH CARE - DRUGS
Elan Corporation PLC, ADR 6,500 371,313
Genzyme Corporation* 4,500 226,125
Watson Pharmaceutical, Incorporated* 11,000 416,625
----------
TOTAL HEALTH CARE - DRUGS - 5.0% . . . . . . . . . . $ 1,014,063
HEALTH CARE - PRODUCTS
Guidant Corporation 8,000 394,000
----------
TOTAL HEALTH CARE - PRODUCTS - 1.9% . . . . . . . . . $ 394,000
HEALTH CARE - SERVICES
Cardinal Health, Incorporated 6,000 432,750
Foundation Health Corporation* 8,000 287,000
Healthcare COMPARE Corporation* 5,500 268,125
----------
TOTAL HEALTH CARE - SERVICES - 4.9% . . . . . . . . . $ 987,875
INDUSTRIAL SERVICES
G & K Services, Inc., Class A 15,200 433,200
Sanifill, Incorporated* 8,500 418,625
----------
TOTAL INDUSTRIAL SERVICES - 4.2% . . . . . . . . . . $ 851,825
MACHINE TOOLS
Kennametal, Incorporated 13,500 459,000
----------
TOTAL MACHINE TOOLS - 2.2% . . . . . . . . . . . . . $ 459,000
MEDIA AND PUBLISHING
Reynolds & Reynolds Company, Class A 12,500 665,625
----------
TOTAL MEDIA & PUBLISHING - 3.3% . . . . . . . . . . . $ 665,625
METALS
Material Sciences Corporation* 14,000 241,500
Wolverine Tube, Inc.* 10,500 367,500
----------
TOTAL METALS - 3.0% . . . . . . . . . . . . . . . . . $ 609,000
* NON-DIVIDEND PAYING SECURITY.
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
- - --------------------------------------------------------------------------------
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
COMMON STOCKS
<TABLE>
<CAPTION>
NUMBER OF SHARES DOLLAR VALUE
---------------- ------------
<S> <C> <C>
OFFICE SUPPLIES
Herman Miller, Inc. 12,000 367,500
Staples, Incorporated* 20,250 394,875
-----------
TOTAL OFFICE SUPPLIES - 3.8% . . . . . . . . . . . . . . . . . . . . . $ 762,375
OIL PRODUCTION AND EXPLORATION
Vastar Resources, Incorporated 13,000 485,875
-----------
TOTAL OIL PRODUCTION AND EXPLORATION - 2.4% . . . . . . . . . . . . . $ 485,875
RESTAURANTS
Wendy's International, Incorporated 14,000 260,750
-----------
TOTAL RESTAURANTS - 1.3%. . . . . . . . . . . . . . . . . . . . . . . $ 260,750
RETAILING
Dillard Department Stores, Inc., Class A 9,000 328,500
Dollar General Corporation 20,000 585,000
-----------
TOTAL RETAILING - 4.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 913,500
TELECOMMUNICATION SERVICES
Century Telephone Enterprises 14,000 446,250
U.S. West Media Group* 6,500 118,625
Paging Network, Incorporated* 8,200 196,800
-----------
TOTAL TELECOMMUNICATION SERVICES - 3.7%. . . . . . . . . . . . . . . . . . . $ 761,675
TRANSPORTATION SERVICES
Fritz Companies* 8,000 258,000
Kansas City Southern Industries 4,000 171,500
-----------
TOTAL TRANSPORTATION SERVICES - 2.1%. . . . . . . . . . . . . . . . . . . . $ 429,500
TOTAL COMMON STOCKS - 94.5% . . . . . . . . . . . . . . . . . . . . . . . . $ 19,199,114
(COMMON STOCK IDENTIFIED COST $16,560,990)
CASH EQUIVALENTS
Dreyfus U.S. Treasury Prime Money Market Fund 1,112,619
-----------
TOTAL CASH EQUIVALENTS - 5.5% . . . . . . . . . . . . . . . . . . . . $ 1,112,619
(CASH EQUIVALENTS IDENTIFIED COST $1,112,619)
TOTAL PORTFOLIO VALUE - 100.0%. . . . . . . . . . . . . . . . . . . . . . . $ 20,311,733
(TOTAL PORTFOLIO IDENTIFIED COST $17,673,609)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . . . . . . $ (704,276)
TOTAL NET ASSETS $ 19,607,457
</TABLE>
* NON-DIVIDEND PAYING SECURITY.
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
- - --------------------------------------------------------------------------------
FIXED INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - BONDS
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
BANK BONDS - MAJOR REGIONAL
Banc One Corporation, 7.25% Due 8/1/02 200,000 202,000
Comerica Bank Subordinated Debenture, 10.125% Due 6/1/98 25,000 26,531
Comerica Bank Subordinated Note, 6.875% Due 3/1/08 250,000 238,438
CoreStates Capital, 6.625% Due 3/15/05 200,000 190,000
First Chicago NBD Corp, 7.25% Due 8/15/04 275,000 275,000
PNC Funding Corp. Subordinated Debenture, 6.875% Due 3/1/03 200,000 197,500
-----------
TOTAL MAJOR REGIONAL BANKS - 7.3% . . . . . . . . . . . . . . . . . . . . . . . $ 1,129,469
BANK BONDS - MONEY CENTER
Bankers Trust Subordinated Debenture, 7.125% Due 7/31/02 200,000 198,250
Republic New York Corporation, 7.25% Due 7/15/02 200,000 202,000
-----------
TOTAL MONEY CENTER BANKS - 2.6% . . . . . . . . . . . . . . . . . . . . . . . . $ 400,250
CAPITAL EQUIPMENT
G.E. Corporation Medium Term Note, 6.875% Due 12/29/99 250,000 251,563
Honeywell, Incorporated, 7.125% Due 4/15/08 250,000 245,625
Illinois Tool Works, Inc., 5.875% Due 3/1/00 200,000 193,750
-----------
TOTAL CAPITAL EQUIPMENT - 4.5% . . . . . . . . . . . . . . . . . . . . . . . . $ 690,938
CHEMICALS
Hercules, Incorporated, 6.625% Due 6/1/03 250,000 243,750
-----------
TOTAL CHEMICALS - 1.6% . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 243,750
ELECTRIC UTILITIES
Carolina Power and Light Company, 6.75% Due 10/1/02 250,000 246,563
Consolidated Edison Corporation, 6.5% Due 2/1/01 200,000 196,000
Louisville Gas & Electric Company, 7.5% Due 7/1/02 25,000 25,469
Midwest Power Corporation, 7.00% Due 2/15/05 200,000 196,250
Pacific Gas & Electric Company, 6.875% Due 12/1/99 40,000 40,100
Public Service Electric & Gas Company, 6.5% Due 5/1/04 200,000 190,250
Union Electric Power Co., First Mortgage, 6.875% Due 8/1/04 200,000 196,358
-----------
TOTAL ELECTRIC UTILITIES - 7.1% . . . . . . . . . . . . . . . . . . . . . . . . $ 1,090,990
ENTERTAINMENT AND LEISURE
Walt Disney Company, 5.80% Due 10/27/08 250,000 221,250
-----------
TOTAL ENTERTAINMENT AND LEISURE - 1.4% . . . . . . . . . . . . . . . . . . . . $ 221,250
FINANCIAL - INSURANCE
Allstate Insurance Company, 5.875% Due 6/15/98 250,000 247,187
-----------
TOTAL FINANCIAL - INSURANCE - 1.6% . . . . . . . . . . . . . . . . . . . . . . $ 247,187
FINANCIAL - SERVICES
Associates Corporation, N.A., 6.00% Due 3/15/00 200,000 195,250
CIT Group Holdings, 8.375% Due 11/01/01 250,000 265,625
G.E. Capital Corporation Medium Term Note, 6.59% Due 1/15/98 30,000 30,150
General Motors Acceptance Corp. Medium Term, 6.1% Due 9/11/97 200,000 199,704
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
- - --------------------------------------------------------------------------------
FIXED INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - BONDS
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
FINANCIAL - SERVICES, CONTINUED
Household Finance Corporation Senior Note, 6.875% Due 3/01/03 200,000 198,000
International Lease Finance Corporation, 6.5% Due 8/15/99 200,000 199,000
-----------
TOTAL FINANCIAL - SERVICES - 7.1%. . . . . . . . . . . . . . . . . . . . . . . . $ 1,087,729
FOOD AND BEVERAGE
General Mills Incorporated, Medium Term Note, 8.85% Due 7/19/99 200,000 211,500
Pepsico, Inc. Medium Term Note, 5.463% Due 7/1/98 200,000 196,250
Sara Lee Corporation, Medium Term Note, 5.700% Due 7/14/00 250,000 240,625
-----------
TOTAL FOOD AND BEVERAGE - 4.2% . . . . . . . . . . . . . . . . . . . . . . . . . $ 648,375
FOREIGN GOVERNMENT (U.S. DOLLAR DENOMINATED)
Province of Manitoba, Canada, 6.750% Due 3/1/03 200,000 198,000
Province of Ontario, Canada, 8.000% Due 10/17/01 30,000 31,500
Province of Ontario, Canada, 7.375% Due 1/27/03 200,000 204,250
-----------
TOTAL FOREIGN GOVERNMENT - 2.8% . . . . . . . . . . . . . . . . . . . . . . . . $ 433,750
FOREIGN UTILITIES (U.S. DOLLAR DENOMINATED)
Hydro Quebec Medium Term Note, 6.980% Due 3/01/05 200,000 195,098
-----------
TOTAL FOREIGN UTILITIES - 1.3% . . . . . . . . . . . . . . . . . . . . . . . . . $ 195,098
NEWSPAPER/PUBLISHING
Scripps Howard Corporation, 7.375% Due 12/15/98 225,000 228,656
-----------
TOTAL NEWSPAPER/PUBLISHING - 1.5%. . . . . . . . . . . . . . . . . . . . . . . . $ 228,656
PETROLEUM
Amoco Canada, 7.250% Due 12/1/02 200,000 203,000
Texaco Capital, Incorporated, 6.875% Due 7/15/99 200,000 201,250
-----------
TOTAL PETROLEUM - 2.6% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 404,250
RAILROADS
CSX Transportation Equipment Trust, 6.070% Due 3/15/01 200,000 195,000
Union Pacific Corporation, 6.250% Due 3/15/99 250,000 247,500
-----------
TOTAL RAILROADS - 2.9% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 442,500
RETAILING
Wal-Mart Stores, Inc., 6.375% Due 3/01/03 200,000 193,750
-----------
TOTAL RETAILING - 1.3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 193,750
REAL ESTATE INVESTMENT TRUSTS
Merry Land & Investment Company, 7.25% Due 6/15/05 200,000 192,750
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS - 1.2% . . . . . . . . . . . . . . . . . . . $ 192,750
TELECOMMUNICATIONS
Cincinnati Bell, Inc., 6.240% Due 12/20/03 250,000 238,438
New York Telephone, 5.875% Due 9/1/03 200,000 186,750
Pacific Bell Telephone, 7.000% Due 7/15/04 200,000 198,000
Southwestern Bell Corporation, 6.375% Due 4/1/01 200,000 196,250
-----------
TOTAL TELECOMMUNICATIONS - 5.3% . . . . . . . . . . . . . . . . . . . . . . . . $ 819,438
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
- - --------------------------------------------------------------------------------
FIXED INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
FIXED INCOME SECURITIES - BONDS
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Federal Home Loan Bank, 6.10% Due 12/13/10 250,000 230,490
Federal Home Loan Bank, 7.03% Due 5/6/11 250,000 246,485
Federal Home Loan Mortgage Corporation, 6.55% Due 1/4/00 200,000 199,378
Federal Home Loan Mortgage Corporation, 8.155% Due 3/9/05 150,000 150,729
Federal Home Loan Mortgage Corporation, 7.35% Due 3/22/05 300,000 306,147
Federal Home Loan Mortgage Corporation, 6.005% Due 12/8/05 200,000 186,160
Federal Home Loan Mortgage Corporation, 5.95% Due 1/19/06 400,000 370,844
Federal Home Loan Mortgage Corporation, CMO Series 1639-PD
Average Maturity 1999, 5.6% due 8/15/06 250,000 241,812
Federal Home Loan Mortgage Corporation, CMO Series 1660
Tranche G, 6.25% Due 7/15/07 250,000 241,695
Federal National Mortgage Association, 6.1% Due 2/10/00 250,000 245,630
Federal National Mortgage Association, 7.5% Due 2/11/02 200,000 206,354
Federal National Mortgage Association, 7.55% Due 4/22/02 200,000 207,012
Federal National Mortgage Association, Medium Term Note
7.800% Due 3/29/05 200,000 201,888
Federal National Mortgage Association, 5.8% Due 2/22/06 450,000 411,979
-----------
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 22.4%. . . . . . . . . . . . $ 3,446,603
UNITED STATES GOVERNMENT OBLIGATIONS
United States Treasury Note, 6.00% Due 12/31/97 400,000 400,224
United States Treasury Note, 4.75% Due 9/30/98 250,000 242,730
United States Treasury Note, 6.00% Due 10/15/99 100,000 99,021
United States Treasury Note, 8.5% Due 11/15/00 400,000 430,828
United States Treasury Note, 7.875% Due 8/15/01 400,000 423,880
United States Treasury Note, 7.5% Due 11/15/01 400,000 417,592
United States Treasury Note, 7.875% Due 11/15/04 325,000 349,352
United States Treasury Note, 5.625% Due 2/15/06 300,000 278,181
United States Treasury Note, 6.875% Due 5/15/06 500,000 505,150
-----------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 20.4% . . . . . . . . . . . . . . . $ 3,146,958
TOTAL FIXED INCOME - BONDS - 99.1% . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,263,691
(FIXED INCOME IDENTIFIED COST $15,465,379)
CASH EQUIVALENTS
Dreyfus U.S. Treasury Prime Money Market Fund 135,125
-----------
TOTAL CASH EQUIVALENTS - 0.9%. . . . . . . . . . . . . . . . . . . . . . . . . . $ 135,125
(CASH EQUIVALENTS IDENTIFIED COST $135,125)
TOTAL PORTFOLIO VALUE - 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,398,816
(TOTAL PORTFOLIO IDENTIFIED COST $15,600,504)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,097
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,455,913
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
- - --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
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 53,562
Ohio State Building Authority, Administrative Building Fund
Projects (MBIA Insured), 5.4% Due 10/1/02 90,000 92,700
Ohio State Building Authority, Correctional Facilities, Series A
Prerefunded 3/1/99 at 102, 7.3% Due 3/1/02 50,000 54,625
Ohio State Building Authority, State Correctional Facilities
Refunding Series 1991 A, 6.5% Due 10/1/01 50,000 53,562
---------
TOTAL BUILDING AUTHORITY - 10.8% . . . . . . . . . . . . . . . . . . . . . . . . $ 254,449
GENERAL OBLIGATION
Butler County, Ohio Infrastructure Special Assessment
General Obligation (AMBAC Insured), 4.9% Due 12/1/98 50,000 50,625
Cincinnati, Ohio General Obligation, 5.25% Due 12/1/00 50,000 51,313
Cleveland, Ohio General Obligation, (AMBAC Insured), 4.9% Due 9/1/02 50,000 50,250
Columbus, Ohio Limited Tax General Obligation, 6.75% Due 7/1/96 50,000 50,000
Delaware County, Ohio General Obligation, 5.25% Due 12/1/06 50,000 49,312
Fayette County, Ohio General Obligation, 5.10% Due 12/1/03 40,000 39,800
Lakewood, Ohio General Obligation, 6.75% Due 12/1/97 50,000 51,875
Medina County, Ohio General Obligation, 12.625% Due 12/1/99 25,000 31,188
Ohio State General Obligation, 4.75% Due 8/1/06 100,000 96,500
Trumbull County, Ohio General Obligation, 5.25% Due 12/1/05 50,000 50,750
---------
TOTAL GENERAL OBLIGATION - 22.2%. . . . . . . . . . . . . . . . . . . . . . . . . . $ 521,613
HIGHER EDUCATION
Ohio State Public Facilities Commission, Higher Education Capital
Facility, Series 11A (AMBAC Insured), 4.7% Due 6/1/00 75,000 75,188
Ohio State Higher Education Facilities, Series 11-B, 5.9% Due 12/1/05 50,000 52,375
Ohio State Higher Education Facilities, Series A, 6.4% Due 5/01/98 50,000 51,752
University of Cincinnati, Ohio General Receipts, 4.65% Due 6/1/98 50,000 50,125
---------
TOTAL HIGHER EDUCATION - 9.8%. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 229,440
HOSPITAL/HEALTH
Franklin County, Ohio Hospital Refunding, The Children's
Hospital Project, 5.2% Due 11/1/04 50,000 50,000
Hamilton County, Ohio Hospital Facility Revenue, 6.35% Due 1/1/98 50,000 51,250
Hamilton County, Ohio Hospital Facility, Children's Hospital
(FGIC Insured), 5.0% Due 5/15/06 50,000 48,500
Maumee, Ohio Hospital Revenue, St. Lukes Hospital Project
(AMBAC Insured), 4.9% Due 12/1/99 50,000 50,687
Ohio State Public Facilities Commission Mental Health Facilities,
Series 11B (FSA Insured), 4.25% Due 6/1/99 50,000 49,750
---------
TOTAL HOSPITAL/HEALTH - 10.6% . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,187
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
- - --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
SCHOOL DISTRICT
Centerburg, Ohio Local School District, 5.25% Due 10/15/01 40,000 40,550
Centerville, Ohio City School District General Obligation
(FGIC Insured), 5.1% Due 12/1/03 50,000 50,438
Cincinnati, Ohio School District Revenue Anticipation Notes,
5.6% Due 6/15/97 50,000 50,767
Cleveland, Ohio City School District Refunding Series B
(FGIC Insured), 5.4% Due 6/1/02 50,000 51,500
Cook County, Illinois School District General Obligation
(AMBAC Insured), 5.2% Due 12/1/01 50,000 51,000
Gallia County, Ohio Local School District General Obligation
5.0% Due 3/1/03 25,000 24,625
Gallia County, Ohio Local School District General Obligation
5.0% Due 3/1/04 25,000 24,375
Indian Valley School District, Ohio General Obligation
(AMBAC Insured), 5.5% Due 12/1/06 50,000 50,625
Olmsted Falls, Ohio City School District General Obligation
(FGIC Insured), 5.3% Due 12/15/00 50,000 51,312
Southwestern City School District, Ohio, Franklin County and
Pickaway County, 6.25% Due 12/1/05 50,000 52,563
West Geauga, Ohio Local School District, School Improvement
General Obligation (AMBAC Insured), 5.45% Due 11/1/04 50,000 51,375
Woodridge, Ohio Local School District General Obligation,
Summit County (AMBAC Insured), 5.45% Due 12/01/04 50,000 51,375
---------
TOTAL SCHOOL DISTRICT - 23.4%. . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,505
UTILITIES
Weatherford, Texas Utility System Revenue, Series 1994
(MBIA Insured), 5.1% Due 9/1/03 50,000 50,250
---------
TOTAL UTILITIES - 2.1% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,250
WATER AND SEWER
Akron, Ohio Sewer System Revenue (MBIA Insured)
5.50% Due 12/1/07 50,000 50,438
Celina, Ohio Wastewater System Mortgage Revenue
(FGIC Insured), 5.6% Due 11/01/99 40,000 41,300
Cleveland, Ohio Waterworks Revenue First Mortgage,
Series G (MBIA Insured), 5.25% Due 1/1/04 50,000 50,625
Columbus, Ohio Sewer Revenue, 5.4% Due 6/01/98 50,000 51,062
Miamisburg, Ohio Sewer System Refunding (AMBAC Insured),
4.35% Due 11/15/02 50,000 48,125
Ohio State Water Development Authority (MBIA Insured),
5.00% Due 12/1/98 50,000 50,875
Ohio State Water Development Authority (MBIA Insured),
5.50% Due 6/01/01 50,000 51,625
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
- - --------------------------------------------------------------------------------
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE VALUE DOLLAR VALUE
---------- ------------
<S> <C> <C>
WATER AND SEWER, CONTINUED
Southwest Ohio Regional Water District Waterworks Revenue
5.25% Due 12/1/05 50,000 49,750
Warren County, Ohio Water and Sewer Line Extension, Special
Assessment Bonds, Series 1994, 5.5% Due 12/1/03 50,000 51,812
---------
TOTAL WATER AND SEWER - 18.9% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 445,612
TOTAL FIXED INCOME - MUNICIPAL BONDS - 97.8%. . . . . . . . . . . . . . . . . . . . . . . . $2,302,057
(MUNICIPAL BONDS IDENTIFIED COST $2,283,097)
CASH EQUIVALENTS
Dreyfus Ohio Municipal Money Market 51,229
---------
TOTAL CASH EQUIVALENTS - 2.2%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,229
(CASH IDENTIFIED COST $51,229)
TOTAL PORTFOLIO VALUE - 100.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,353,286
(TOTAL PORTFOLIO IDENTIFIED COST $2,334,326)
Other Assets Less Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,661)
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,350,625
---------
---------
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
17
<PAGE>
- - --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITES JUNE 30, 1996
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS BOND FUNDS
------------------------------ ------------------------------
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investment Securities $ 19,225,233 $ 20,311,733 $ 15,398,816 $ 2,353,286
at Market Value*
Dividends and Interest Receivable 30,848 13,254 281,107 22,468
Receivable for Securities Sold 0 145,000 0 0
------------ ------------ ------------ -----------
TOTAL ASSETS........................$ 19,256,081 $ 20,469,987 $ 15,679,923 $ 2,375,754
LIABILITIES:
Investment Securities Purchased 0 846,345 0 0
Dividends Payable 37,948 0 213,253 23,686
Capital Gains Payable 0 0 0 0
Accrued Management Fees 15,597 16,185 10,757 1,443
------------ ------------ ------------ -----------
TOTAL LIABILITIES...................$ 53,545 $ 862,530 $ 224,010 $ 25,129
NET ASSETS...............................$ 19,202,536 $ 19,607,457 $ 15,455,913 $ 2,350,625
NET ASSETS CONSIST OF:
Paid in Capital (see note #7) 15,350,234 15,957,706 15,694,853 2,329,844
Undistributed Net
Investment Income 9,442 26,297 13,636 857
Undistributed Net Realized Gain
(Loss) from Security Transactions 272,326 985,330 (50,888) 964
Net Unrealized Gain (Loss)
on Investments......................... 3,570,534 2,638,124 (201,688) 18,960
------------ ------------ ------------ -----------
NET ASSETS...............................$ 19,202,536 $ 19,607,457 $ 15,455,913 $ 2,350,625
Shares Outstanding........................ 948,795 924,593 1,015,582 152,812
OFFERING, REDEMPTION AND
NET ASSET VALUE PER SHARE................$ 20.24 $ 21.21 $ 15.22 $ 15.38
*IDENTIFIED COST.........................$ 15,654,699 $ 17,673,609 $ 15,600,504 $ 2,334,326
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
- - --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS JANUARY 1 - JUNE 30, 1996
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS BOND FUNDS
-------------------------- -------------------------
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
----------- ----------- ---------- ---------
6 MONTHS 6 MONTHS 6 MONTHS 6 MONTHS
ENDED ENDED ENDED ENDED
6/30/96 6/30/96 6/30/96 6/30/96
----------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 11,151 $ 17,293 $ 497,002 $ 55,602
Dividends 157,973 98,587 0 0
----------- ----------- ---------- ---------
TOTAL INVESTMENT INCOME . . . . . . . $ 169,124 $ 115,880 $ 497,002 $ 55,602
EXPENSES:
Gross Management Fee 111,998 116,459 90,473 14,825
Management Fee Waiver
(See accompanying note #3) (25,846) (26,875) (23,602) (6,272)
----------- ----------- ---------- ---------
TOTAL EXPENSES. . . . . . . . . . . . $ 86,152 $ 89,584 $ 66,871 $ 8,553
NET INVESTMENT INCOME . . . . . . . . . . $ 82,972 $ 26,296 $ 430,131 $ 47,049
REALIZED AND UNREALIZED GAINS (LOSSES):
Net Realized Gain (Loss) from
Security Transactions 272,326 985,330 (27,336) 964
Net Unrealized Gain (Loss)
on Investments 901,261 518,980 (614,759) (45,654)
----------- ----------- ---------- ---------
----------- ----------- ---------- ---------
NET GAIN (LOSS) ON INVESTMENTS. . . . . . $1,173,587 $ 1,504,310 $ (642,095) $ (44,690)
NET INCREASE IN ASSETS
FROM OPERATIONS . . . . . . . . . . . . $1,256,559 $ 1,530,606 $ (211,964) $ 2,359
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
<PAGE>
- - --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS JUNE 30, 1996
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK FUNDS
------------------------------------------------------------------
GROWTH FUND OPPORTUNITY FUND
------------------------------- -----------------------------
6 MTHS ENDED YR. ENDED 6 MTHS ENDED YR. ENDED
6/30/96 12/31/95 6/30/96 12/31/95
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 82,972 $ 174,821 $ 26,296 $ 63,156
Net Realized Gain (Loss)
from Security Transactions 272,326 295,444 985,330 136,269
Net Unrealized Gain (Loss)
on Investments 901,261 2,869,051 518,980 2,030,849
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN
ASSETS FROM OPERATIONS ............$ 1,256,559 $ 3,339,316 $ 1,530,606 $ 2,230,274
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (73,530) (174,821) 0 (63,156)
Net Realized Gain from
Security Transactions 0 (292,144) 0 (130,391)
----------- ----------- ----------- -----------
NET DECREASE IN ASSETS
FROM DISTRIBUTIONS................$ (73,530) $ (466,965) $ 0 $ (193,547)
CAPITAL SHARE TRANSACTIONS:
Proceeds From Sale of Shares 3,122,277 3,181,606 3,430,788 7,202,770
Net Asset Value of Shares Issued on
Reinvestment of Dividends 314,590 158,353 45,955 4,955
Cost of Shares Redeemed (285,809) (648,025) (590,964) (341,113)
----------- ----------- ----------- -----------
NET INCREASE IN ASSETS FROM
CAPITAL SHARE TRANSACTIONS.........$ 3,151,058 $ 2,691,934 $ 2,885,779 $ 6,866,612
NET INCREASE IN NET ASSETS.................$ 4,334,087 $ 5,564,285 $ 4,416,385 $ 8,903,339
NET ASSETS AT BEGINNING OF PERIOD..........$ 14,868,449 $ 9,304,164 $ 15,191,072 $ 6,287,733
NET ASSETS AT END OF PERIOD................$ 19,202,536 $ 14,868,449 $ 19,607,457 $ 15,191,072
</TABLE>
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
- - --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS JUNE 30, 1996
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BOND FUNDS
----------------------------------------------------------------------
FIXED INCOME FUND MUNICIPAL INCOME FUND
----------------------------------------------------------------------
6 MTHS ENDED YR. ENDED 6 MTHS ENDED YR. ENDED
6/30/96 12/31/95 6/30/96 12/31/95
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 430,131 $ 821,802 $ 47,049 $ 83,063
Net Realized Gain (Loss)
from Security Transactions (27,336) (23,420) 964 747
Net Unrealized Gain (Loss)
on Investments (614,759) 1,598,182 (45,654) 108,108
----------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN
ASSETS FROM OPERATIONS . . . . . . . . . $ (211,964) $ 2,396,564 $ 2,359 $ 191,918
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (416,507) (821,790) (46,201) (83,054)
Net Realized Gain from
Security Transactions 0 0 0 (747)
----------- ---------- ---------- ----------
NET DECREASE IN ASSETS
FROM DISTRIBUTIONS . . . . . . . . . . . $ (416,507) $ (821,790) $ (46,201) $ (83,801)
CAPITAL SHARE TRANSACTIONS:
Proceeds From Sale of Shares 1,789,296 3,632,971 127,221 797,695
Net Asset Value of Shares Issued on
Reinvestment of Dividends/Gains 299,869 687,058 34,507 65,076
Cost of Shares Redeemed (1,979,637) (2,376,556) (50,159) (180,347)
----------- ---------- ---------- ----------
NET INCREASE IN ASSETS FROM
CAPITAL SHARE TRANSACTIONS . . . . . . . . $ 109,528 $ 1,943,473 $ 111,569 $ 682,424
NET INCREASE IN NET ASSETS . . . . . . . . . $ (518,943) $ 3,518,247 $ 67,727 $ 790,541
NET ASSETS AT BEGINNING OF PERIOD. . . . . . $15,974,856 $12,456,609 $ 2,282,898 $ 1,492,357
NET ASSETS AT END OF PERIOD. . . . . . . . . $15,455,913 $15,974,856 $ 2,350,625 $ 2,282,898
</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
----------------------------------------------- ----------------------------------
6 MONTHS YEAR YEAR YEAR 6 MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED 5/16/94-
6/30/96 12/31/95 12/31/94 12/31/93 6/30/96 12/31/95 12/31/94
------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period . . . . . . $ 18.86 $ 14.81 $ 15.71 $ 15.00 $ 19.42 $ 15.70 $ 15.00
OPERATIONS:
Net Investment Income 0.09 0.24 0.24 0.18 0.03 0.08 0.05
Net Gains (losses) on Securities
(Realized & Unrealized) 1.37 4.42 (0.90) 0.71 1.76 3.89 0.70
------- -------- -------- -------- -------- -------- --------
TOTAL OPERATIONS . . . . . . $ 1.46 $ 4.66 $ (0.66) $ 0.89 $ 1.79 $ 3.97 $ 0.75
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.08) (0.24) (0.24) (0.18) 0.00 (0.08) (0.05)
Distributions from Net
Realized Capital Gains 0.00 (0.37) 0.00 0.00 0.00 (0.17) 0.00
------- -------- -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS. . . . . $ (0.08) $ (0.61) $ (0.24) $ (0.18) $ 0.00 $ (0.25) $ (0.05)
Net Asset Value
End of Period. . . . . . . . . . . $ 20.24 $ 18.86 $ 14.81 $ 15.71 $ 21.21 $ 19.42 $ 15.70
TOTAL RETURN. . . . . . . . . . . . . 7.75% 31.61% (4.22%) 5.93% 9.22% 25.27% 4.99%
Net Assets, End of Period
(Millions) . . . . . . . . . . . . $ 19.20 14.87 9.30 6.58 $ 19.61 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% 1.00% 1.00%
Ratio of Net Income to
Average Net Assets (2). . . . . 0.96% 1.42% 1.65% 1.38% 0.29% 0.59% 1.01%
Portfolio Turnover Rate . . . . . . . 12.29% 52.91% 30.38% 23.57% 21.33% 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 6/30/96, assuming no waiver of management fee expenses, the ratios
would have been: (See note #3.)
Growth Opportunity
------ -----------
Expenses to Average Net Assets 1.30% 1.30%
Net income to Average Net Assets 0.66% 0.00%
(2) Ratios have been annualized in 1996 for both Funds, and in 1994 for the
Opportunity Fund.
- - --------------------------------------------------------------------------------
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
--------------------------------------- -----------------------------
6 MONTHS YEAR YEAR YEAR 6 MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED 5/16/94-
6/30/96 12/31/95 12/31/94 12/31/93 6/30/96 12/31/95 12/31/94
--------- -------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period . . . . . . . . . . . . . . $ 15.84 $ 14.20 $ 15.80 $ 15.00 $ 15.68 $ 14.73 $ 15.00
OPERATIONS:
Net Investment Income 0.42 0.83 0.80 0.60 0.31 0.63 0.39
Net Gains (losses) on Securities
(Realized & Unrealized) (0.63) 1.64 (1.60) 0.83 (0.30) 0.96 (0.27)
-------- ------- -------- ------- ------- ------- -------
TOTAL OPERATIONS . . . . .. . . . . . . . . . . $ (0.21) $ 2.47 $ (0.80) $ 1.43 $ 0.01 $ 1.59 $ 0.12
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.41) (0.83) (0.80) (0.60) (0.31) (0.63) (0.39)
Distributions from Net
Realized Capital Gains 0.00 0.00 0.00 (0.03) 0.00 (0.01) 0.00
-------- ------- -------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS . . . . . . . . . . . . . $ (0.41) $ (0.83) $ (0.80) $ (0.63) $ (0.31) $ (0.64) $ (0.39)
Net Asset Value
End of Period . . . . . . . . . . . . . . . . . . . . $ 15.22 $ 15.84 $ 14.20 $ 15.80 $ 15.38 $ 15.68 $ 14.73
TOTAL RETURN . . . . . . . . . . . . . . . . . . . . . . . . (1.39%) 17.70% (5.14%) 9.51% 0.07% 10.88% 0.81%
Net Assets, End of Period
(Millions) . . . . . . . . . . . . . . . . . . . . . . $ 15.46 15.97 12.46 10.08 $ 2.35 2.28 1.49
RATIOS AFTER FEE WAIVERS: (1)
Ratio of Expenses to
Average Net Assets (2) . . . . . . . . . . . . . . . 0.85% 0.85% 0.85% 0.85% 0.75% 0.68% 0.01%
Ratio of Net Income to
Average Net Assets (3) . . . . . . . . . . . . . . . 5.47% 5.54% 5.53% 5.08% 4.10% 4.28% 5.46%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . 13.42% 4.95% 0.04% 10.14% 4.40% 7.81% 0.00%
</TABLE>
- - --------------------------------------------------------------------------------
(1) The Adviser intends fee waivers of 0.30% on the Fixed Income Fund and 0.40%
on the Municipal Income Fund to be permanent, although the Adviser
retains the right to remove the waivers after 12/31/96. As of 6/30/96,
assuming no waiver of management fee expenses, the ratios would have been:
(See note #3)
Fixed Municipal
------- -----------
Expenses to Average Net Assets: 1.15% 1.15%
Net income to Average Net Assets: 5.17% 3.70%
(2) The Adviser waived 1.14% of the fee on the Municipal Income Fund in 1994,
and 0.47% of the fee in 1995.
(3) Ratios have been annualized in 1996 for both Funds, and in 1994 for the
Municipal Income Fund.
- - --------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
- - --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
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. Discounts and premiums on securities
purchased are amortized over the life of the respective securities.
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 - June 30, 1996 as follows:
Growth Fund $86,152 Fixed Income Fund $66,871
Opportunity Fund $89,584 Municipal Income Fund $ 8,553
- - --------------------------------------------------------------------------------
-24-
<PAGE>
- - --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
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 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. The Adviser is authorized to charge a management
fee of 1.15% on the Municipal Income Fund, and has waived 0.40% 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.
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 6 months ended June 30, 1996,
of $1,500 for his responsibilities as trustee and has received no
additional compensation from the Trust.
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
June 30, 1996, 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 June 30, 1996, 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 June 30, 1996, 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.
<TABLE>
<CAPTION>
SHARE TRANSACTIONS FOR THE PERIOD JANUARY 1 - JUNE 30, 1996:
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Shares Sold to Investors 158,094 168,274 114,848 8,182
Shares Issued on Reinvestment Dividends 16,612 2,366 19,171 2,217
---------- ---------- ---------- ---------
Subtotal 174,706 170,640 134,019 10,399
Shares Redeemed (14,450) (28,145) (126,932) (3,182)
---------- ---------- ---------- ---------
Net Increase 160,256 142,495 7,087 7,217
SHARES OUTSTANDING:
December 31, 1995 (beginning of period) 788,539 782,098 1,008,495 145,595
JUNE 30, 1996 (END OF PERIOD) 948,795 924,593 1,015,582 152,812
</TABLE>
6) PURCHASES AND SALES OF SECURITIES:
During the 6 months ended June 30, 1996:
GROWTH FUND: Purchases of investment securities other than U.S. Government
obligations and short term investments aggregated $4,941,604 and sales of
investment securities other than U.S. Government obligations and short term
investments aggregated $2,136,330. There were no purchases or sales of
U.S. Government obligations in the Fund.
- - --------------------------------------------------------------------------------
-25-
<PAGE>
- - --------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1996
- - --------------------------------------------------------------------------------
6) PURCHASES AND SALES OF SECURITIES, CONTINUED:
During the 6 months ended June 30, 1996:
OPPORTUNITY FUND: Purchases of investment securities other than U.S.
Government obligations and short term investments aggregated $6,883,559 and
sales of investment securities other than U.S. Government obligations and
short term investments aggregated $3,905,649. 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 $576,718 and
sales of investment securities other than U.S. Government obligations and
short term investments aggregated $969,183. Purchases of U.S. Government
obligations aggregated $2,047,400 and sales of U.S. Government obligations
aggregated $1,460,192.
MUNICIPAL INCOME FUND: Purchases of investment securities other than U.S.
Government obligations and short term investments aggregated $455,121 and
sales of investment securities other than U.S. Government obligations and
short term investments aggregated $125,669. 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 June 30,
1996 was the same as identified cost. As of June 30, 1996 the composition
of unrealized appreciation (the excess of value over tax cost) and
depreciation (the excess of tax cost over value) was as follows:
NET
APPRECIATION
FUND APPRECIATION (DEPRECIATION) (DEPRECIATION)
---- ------------ -------------- --------------
Growth $3,703,511 ($132,977) $3,570,534
Opportunity $3,228,207 ($590,083) $2,638,124
Fixed Income $ 101,553 ($303,241) ($ 201,688)
Municipal Income $ 28,519 ($ 9,559) $ 18,960
8) RECLASSIFICATION OF CAPITAL ACCOUNTS:
Substantially all of the income earned in 1995 was distributed prior to
year end 1995. Insignificant amounts of income were unable to be
distributed without causing unreasonable expense to the Trust. These
amounts have been carried forward into 1996 and have not been transferred
to paid in capital. This income has accrued as part of the current
undistributed net income and is available to shareholders. The Trust has
made the determination that it will be paid prior to year end, should it
not cause the Trust unreasonable expense to do so. Thus, the income earned
from January 1 - June 30, 1996, as reported on the Statement of Operations
will be marginally less than undistributed net investment income as
reported on the Statement of Assets and Liabilities by the following
amounts:
Growth Fund $0 Fixed Income Fund $12
Opportunity Fund $1 Municipal Income Fund $ 9
9) FINANCIAL INSTRUMENTS DISCLOSURE:
There are no reportable financial instruments that have any off balance
sheet risk as of June 30, 1996.
- - --------------------------------------------------------------------------------
-26-
<PAGE>
- - --------------------------------------------------------------------------------
CUSTODIAN AND TRANSFER AGENT
- - --------------------------------------------------------------------------------
The Provident Bank
Mutual Fund Service Center
P.O Box 14967
Cincinnati, Ohio 45250(0967)
(513) 579(2784)
(800) 424(2295)
- - --------------------------------------------------------------------------------
AUDITORS
- - --------------------------------------------------------------------------------
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, Ohio 44145
(216) 835(8500)
- - --------------------------------------------------------------------------------
27
<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
- - --------------------------------------------------------------------------------
28
<PAGE>
- - --------------------------------------------------------------------------------
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.
- - --------------------------------------------------------------------------------
29
<PAGE>
- - --------------------------------------------------------------------------------
JOHNSON MUTUAL FUNDS TRUST
5556 CHEVIOT ROAD, CINCINNATI, OHIO 45247
(513) 385(4001 (800) 541-0170)
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
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, policies,
management fees, and other information that may be helpful
in making an investment decision.
- - --------------------------------------------------------------------------------
