<PAGE> 1
JOHNSON
MUTUAL FUNDS
SEMI-ANNUAL REPORT JUNE 30, 1997 - UNAUDITED
[]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> 2
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
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
Growth Fund................................................................22
Opportunity Fund...........................................................23
Fixed Income Fund..........................................................24
Municipal Income Fund......................................................25
Notes to the Financial Statements...........................................26-28
Trustees, Officers, Transfer Agent, Fund Accountant, Custodian, Auditors.......29
</TABLE>
<PAGE> 3
Our message to you:
August 20, 1997
Dear Shareholder:
Both the stock and the bond markets have been marked with unusual volatility in
1997. Although this report contains financial data supporting the semi-annual
returns of your Funds through June 30, 1997, the recent market performance is
worth noting. The stock market suffered its worst one-day decline in ten years
on Friday, August 15, 1997, only to be marked by several consecutive days of
positive market performance that recovered all of Friday's losses. At the
writing of this letter, the Standard & Poors 500 Index is back up to 98% of its
all time high. Inflation remains low and the Fed does not appear poised to raise
interest rates any time soon.
The positive returns of the Johnson Mutual Funds through June 30, 1997, are
illustrated on the following four pages of this report. This positive
performance continued through July, marking a 28.3% return for the Growth Fund
and 21.7% return for the Opportunity Fund year to date through July 31, 1997.
The Fixed Income Fund and Municipal Income Fund also experienced positive
returns from the beginning of the year through July 31, 1997, gaining 5.1% and
3.8% respectively.
We would like to express our gratitude for your continued confidence in the
Johnson Mutual Funds. Our goals are to provide you with the highest level of
customer service, to meet your investment objectives through careful investing,
and to maintain open lines of clear communication. As always, please call if you
have any questions or comments about the following report.
Sincerely,
/s/ Timothy E. Johnson
-----------------------------
Timothy E. Johnson, President
<PAGE> 4
GROWTH FUND PERFORMANCE REVIEW JUNE 30, 1997
[Graph]
For Periods Ended June 30, 1997:
<TABLE>
<CAPTION>
Since
Average Annual Inception
6 Months Total Returns(b) (a)
Ended ---------------- ---------
6/30/97 1 Year 3 Year 4.5 Years
------- ------ ------ ---------
<S> <C> <C> <C> <C>
Growth 17.13% 27.03% 22.24% 14.35%
S&P 500 Index 20.61% 34.70% 28.86% 20.05%
</TABLE>
(a) 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.
(b) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends and capital gains. The
Fund's performance is after all fees. The Index does not include any fees. A
shareholder cannot invest directly in the Standard & Poors 500 Index.
Top Ten Holdings:
Procter & Gamble Company 4.0%
Mobil Corporation 4.0%
Johnson & Johnson 3.9%
General Re Corporation 3.6%
General Electric Company 3.3%
Washington Mutual, Inc. 2.9%
Dresser Industries 2.8%
EMC Corporation 2.8%
Hewlett-Packard Company 2.7%
Smithkline Beecham PLC ADR 2.5%
HOW DID THE GROWTH FUND PERFORM RELATIVE TO THE MARKET?
The rate of return on the Growth Fund for the first six months of 1997 was 17.1%
and compares to a return of 20.6% on the Standard & Poor's 500 Index. The Growth
Fund had a larger allocation than the S&P 500 Index in the basic industry and
health care sectors, and also had good stock selection, which benefited the
fund. However, that positive effect was offset by a lower allocation in the
finance and technology sectors. These were two of the strongest sectors of the
S&P 500 Index with price appreciation of 23% and 21%, respectively. Only the
health care sector performed better than these two industries, with a price
increase of over 30% through June 30, 1997.
The Growth Fund, as well as the majority of stock mutual funds, continues to
find the S&P 500 Index a very difficult bogey to match. That is due in part to
the fact that the presence of even modest amounts of cash is dilutive to
portfolio returns when stock returns are very high. Secondly, the Index is
heavily weighted in a handful of very large and, at this point, expensive
stocks, such as General Electric, Coca Cola, Exxon, and Merck. As long as this
group of stocks continues to lead the Index to new highs, outperforming the
Index will be difficult for a conservative, diversified portfolio. It may very
well take a much less exuberant market to show the real worth of a diversified
portfolio such as the Growth Fund.
Growth Fund Objective: Long-Term Capital Growth
Primary Asset Category: Stocks of Larger-Sized Quality Growth Companies
2
<PAGE> 5
OPPORTUNITY FUND PERFORMANCE REVIEW JUNE 30, 1997
[GRAPH]
For Periods Ended June 30, 1997:
<TABLE>
<CAPTION>
Since
Average Annual Inception
6 Months Total Returns(b) (a)
Ended ---------------- -----------
6/30/97 1 Year 3 Year 3.1 Years
------- ------ ------ ---------
<S> <C> <C> <C> <C>
Opportunity 11.26% 25.40% 21.75% 24.93%
S&P MidCap Index 13.00% 23.35% 22.43% 26.35%
</TABLE>
(a) 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.
(b) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends and capital gains. The
Fund's performance is after all fees. The Index does not include any fees. A
shareholder cannot invest directly in the Standard & Poors MidCap Index.
Top Ten Holdings:
Herman Miller, Inc. 2.9%
Reliastar Financial Corporation 2.8%
Dollar General Corporation 2.7%
EMC Corporation 2.6%
The Gap, Inc. 2.5%
Transatlantic Holdings, Inc. 2.5%
G&K Services, Inc., Class A 2.5%
K2, Inc. 2.4%
USA Waste Services, Inc. 2.4%
Medusa Corporation 2.3%
HOW DID THE OPPORTUNITY FUND PERFORM RELATIVE TO THE MARKET?
The rate of return for the first six months of 1997 for the Opportunity Fund was
11.3%, as compared to the S&P Midcap Index return of 13.0%. The performance of
the Opportunity Fund compares favorably with other similarly managed midcap
mutual funds. The two best performing sectors in the S&P Midcap Index during the
period were transportation (+25%) and finance (+23%). The finance sector is a
large one, representing about 16% of the Index. The Opportunity Fund maintained
a weighting close to that of the Index in the finance sector and the Fund's
stock selection was good. The technology and consumer cyclical sectors are the
largest within the Index and the Fund's stocks had modestly lower returns in
those sectors.
As is evident from the S&P Index returns, large cap stocks continue to perform
better than the mid-cap universe. That is a phenomenon that has been evident for
more than three years. There is little consensus as to when that trend might
reverse. However, the longer the trend continues, the better the relative value
is within the midcap universe and the more compelling the argument for having
investments in this sector of the market, as represented in the Opportunity
Fund.
Opportunity Fund Objective: Long-Term Capital Appreciation
Primary Asset Category: Stocks of Medium/Small-Sized Growth Companies
3
<PAGE> 6
FIXED INCOME FUND PERFORMANCE REVIEW JUNE 30, 1997
[GRAPH]
For Periods Ended June 30, 1997:
<TABLE>
<CAPTION>
Since
Average Annual Inception
6 Months Total Returns(b) (a)
Ended ------------------ ----------
6/30/97 1 Year 3 Year 4.5 Years
------- ------- ------ ---------
<S> <C> <C> <C> <C>
Fixed Income 2.31% 6.97% 7.44% 5.83%
Lehman Int. Index 2.83% 7.22% 7.51% 6.20%
</TABLE>
(a) 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.
(b) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends and capital gains. The
Fund's performance is after all fees. The Index does not include any fees. A
shareholder cannot invest directly in the Lehman Intermediate Government
Corporate Index.
[GRAPH]
HOW DID THE FIXED INCOME FUND PERFORM RELATIVE TO THE MARKET?
Through the first six months of 1997, the Fixed Income Fund provided a total
return of 2.3%, compared to 2.8% for the Lehman Intermediate Government
Corporate Bond Index. During the first quarter of the year, exceptionally strong
economic growth pushed interest rates higher and bond prices lower. Slower
growth and lessening inflation pressures in the second quarter, combined with a
sharp reduction in the budget deficit, allowed the bond market to improve, with
bond yields finishing the first half, only slightly higher than the beginning of
the year. In this environment, the Fixed Income Fund was able to improve its
relative performance due to its slightly longer weighted average maturity. The
Fund's larger concentration of high-quality corporate bonds also made a positive
contribution to return, as corporate bonds had higher relative returns than
Treasuries, which make up the largest portion of the Lehman Index.
As always, the Fixed Income Fund continues to focus on only high-quality
securities. Each security within the Fund is rated investment-grade quality by
the National Credit Ratings Services, with over 95% of the assets rated "A" or
better. These highly rated securities are considered to have adequate to strong
protection of principal and interest payments, and will help provide a stable
portfolio valuation should economic circumstances change in the future.
Fixed Income Fund Objective: Income and Capital Preservation
Primary Asset Category: Investment-Grade Government/Corporate Bonds
4
<PAGE> 7
MUNICIPAL INCOME FUND PERFORMANCE REVIEW JUNE 30, 1997
[GRAPH]
For Periods Ended June 30, 1997
<TABLE>
<CAPTION>
Since
Average Annual Inception
6 Months Total Returns(b) (a)
Ended ---------------- ----------
6/30/97 1 Year 3 Year 3.1 Years
------- ------ ------ ---------
<S> <C> <C> <C> <C>
Municipal Income 1.95% 5.37% 5.47% 6.06%
Lehman G.O. Index 2.33% 6.27% 6.30% 7.06%
</TABLE>
(a) 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.
(b) The average annual total return numbers above include changes in the Fund's
or Index's share price plus reinvestment of any dividends and capital gains. The
Fund's performance is after all fees. The Index does not include any fees. A
shareholder cannot invest directly in the Lehman Five-Year General Obligation
Municipal Index.
[GRAPH]
HOW DID THE MUNICIPAL INCOME FUND PERFORM RELATIVE TO THE MARKET?
The Municipal Income Fund returned 2.0% to investors through the first six
months of 1997, as compared to 2.3% for the Lehman Five-Year General Obligation
Municipal Bond Index. As has been the case since the Fund's inception, the
majority of this return was tax-free coupon income. Nearly all of this came from
Ohio municipalities.
The Fund had a slightly lower return than the Index due to expenses on the Fund
that are not on the Index. The diversified shorter-term maturity structure of
the portfolio, compared to the more concentrated long-term nature of the Index,
also had a modest drag to its return. The purpose of this diversified maturity
approach is to insulate investors from the volatility of interest rates over the
long run. Compared to taxable bonds, however, the municipal bond sector had good
relative performance in the first half of 1997, as municipal bond yields were
much less volatile.
Each of the securities in the Municipal Income Fund that is rated by a national
credit rating service is highly rated, with no security being below "A".
Additionally, more than 80% of the holdings are rated "AA" or better. While 7%
of the securities have chosen to not be rated by a rating service, they have the
credit characteristics comparable to the other highly rated holdings. This
high-quality nature of the Fund will help protect investors should the economic
environment shift.
Municipal Income Fund Objective: Tax-Free Income and Capital Preservation
Primary Asset Category: Intermediate-Term Ohio Municipal Bonds
5
<PAGE> 8
<TABLE>
<CAPTION>
GROWTH FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 - UNAUDITED
COMMON STOCKS NUMBER OF SHARES DOLLAR VALUE
- ------------- ---------------- ------------
<S> <C> <C>
BEVERAGES
Whitman Corporation 19,000 456,000
----------
TOTAL BEVERAGES - 1.6%......................................... $ 456,000
CHEMICALS
Air Products & Chemicals, Inc. 7,300 609,550
----------
TOTAL CHEMICALS - 2.2%......................................... $ 609,550
CHEMICALS - SPECIALTY
Avery Dennison Corporation 13,000 521,625
Ecolab Inc. 12,000 573,000
Sigma - Aldrich Corporation 16,000 561,000
----------
TOTAL CHEMICALS - SPECIALTY - 5.9%............................. $1,655,625
COMPUTER NETWORKING
Cisco Systems Inc.* 7,100 476,588
----------
TOTAL COMPUTER NETWORKING-1.7%................................. $ 476,588
COMPUTER SOFTWARE
Computer Associates International, Inc. 11,400 634,837
EMC Corporation* 20,000 780,000
Microsoft Corporation* 2,800 353,850
----------
TOTAL COMPUTER SOFTWARE-6.3%................................... $1,768,687
COMPUTER SYSTEMS
Hewlett-Packard Company 13,400 750,400
----------
TOTAL COMPUTER SYSTEMS-2.7%.................................... $ 750,400
ELECTRICAL EQUIPMENT
General Electric Company 14,200 928,325
Rockwell International 8,000 472,000
----------
TOTAL ELECTRICAL EQUIPMENT-5.0%................................ $1,400,325
ELECTRONICS - SEMI-CONDUCTORS
Intel Corporation 2,600 368,712
----------
TOTAL ELECTRONICS - SEMI-CONDUCTORS-1.3%....................... $ 368,712
ENERGY SERVICES
Dresser Industries 21,000 782,250
----------
TOTAL ENERGY SERVICES-2.8%..................................... $ 782,250
FINANCIAL - EQUIPMENT
Diebold Inc. 11,500 448,500
----------
TOTAL FINANCIAL - EQUIPMENT-1.6%............................... $ 448,500
FINANCIAL - INSURANCE
Conseco Inc. 12,300 455,100
General Re Corporation 5,600 1,019,200
----------
TOTAL FINANCIAL - INSURANCE-5.3%............................... $1,474,300
</TABLE>
* Non-dividend paying security.
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
6
<PAGE> 9
<TABLE>
<CAPTION>
GROWTH FUND PORTFOLIO INVESTMENTS JUNE 30, 1997 - UNAUDITED
COMMON STOCKS NUMBER OF SHARES DOLLAR VALUE
- ------------- ---------------- ------------
<S> <C> <C>
FINANCIAL - REGIONAL BANKS
Fifth Third Bancorp 6,000 492,187
Nationsbank Corporation 8,000 516,000
Regions Financial Corporation 19,000 600,875
----------
TOTAL FINANCIAL - REGIONAL BANKS - 5.7%...........................$1,609,062
FOODS AND FOOD RETAILERS
Nabisco Holdings Corporation 12,200 486,475
Sara Lee Corporation 14,800 616,050
Sysco Corporation 13,590 496,035
----------
TOTAL FOODS AND FOOD RETAILERS - 5.7%............................ $1,598,560
HEALTH CARE - PRODUCTS
Johnson and Johnson 17,000 1,094,375
Medtronic, Corporation 7,100 575,100
----------
TOTAL HEALTH CARE - PRODUCTS - 6.0%...............................$1,669,475
HEALTH CARE - DRUGS
Amgen, Inc. 4,000 232,500
Pfizer, Inc. 5,400 645,300
Merck and Company 5,200 538,200
Schering-Plough Corporation 14,040 672,165
Smithkline Beecham PLC ADR 7,700 705,512
----------
TOTAL HEALTH CARE - DRUGS - 10.0%.................................$2,793,677
HOUSEHOLD PRODUCTS
Gillette Company 5,357 507,576
Procter & Gamble Company 8,000 1,130,000
----------
TOTAL HOUSEHOLD PRODUCTS - 5.8%...................................$1,637,576
INDUSTRIAL SERVICES
Cintas Corporation 9,000 618,750
----------
TOTAL INDUSTRIAL SERVICES - 2.2%..................................$ 618,750
MANUFACTURING
Dover Corporation 11,000 676,500
----------
TOTAL MANUFACTURING - 2.4%........................................$ 676,500
NATURAL GAS
Enron Corporation 12,300 501,994
----------
TOTAL NATURAL GAS - 1.8%..........................................$ 501,994
PETROLEUM
Marathon Group Inc. (USX) 17,000 490,875
Mobil Corporation 16,000 1,118,000
----------
TOTAL PETROLEUM - 5.7%............................................$1,608,875
RESTAURANTS
McDonald's Corporation 11,200 541,100
----------
TOTAL RESTAURANTS - 1.9%..........................................$ 541,100
</TABLE>
* Non-dividend paying security.
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
7
<PAGE> 10
<TABLE>
<CAPTION>
GROWTH FUND PORTFOLIO INVESTMENTS JUNE 30, 1997 - UNAUDITED
COMMON STOCKS NUMBER OF SHARES DOLLAR VALUE
- ------------- ---------------- ------------
RETAILING
<S> <C> <C>
May Department Stores Company 9,500 448,875
Sherwin Williams Company, (The) 21,000 648,375
Staples Inc.* 22,000 508,750
Walgreen Company 11,000 589,875
------------
TOTAL RETAILING - 7.8%........................................................ $ 2,195,875
SAVINGS AND LOANS
Washington Mutual, Inc. 13,600 812,600
------------
TOTAL SAVINGS AND LOANS - 2.9%................................................. $ 812,600
TELECOMMUNICATION SERVICES
GTE Corporation 10,866 476,746
------------
TOTAL TELECOMMUNICATION SERVICES - 1.7%.........................................$ 476,746
TRANSPORTATION
Burlington Northern, Inc. 5,200 467,350
------------
TOTAL TRANSPORTATION - 1.7%.................................................... $ 467,350
TOTAL COMMON STOCKS - 97.7%........................................................ $ 27,399,077
(Common Stock Identified Cost $20,329,879)
CASH EQUIVALENTS
Federated U.S. Treasury Cash Reserves Money Market Fund 648,985
------------
TOTAL CASH EQUIVALENTS - 2.3%.................................................. $ 648,985
(Cash Equivalents Identified Cost $648,985)
TOTAL PORTFOLIO VALUE - 100.0%......................................................$ 28,048,062
(Total Portfolio Identified Cost $20,978,864)
Other Assets Less Liabilities...................................................$ (556,859)
TOTAL NET ASSETS....................................................................$ 27,491,203
</TABLE>
* Non-dividend paying security.
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
8
<PAGE> 11
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 UNAUDITED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stocks Number of Shares Dollar Value
- ------------- ---------------- ------------
<S> <C> <C>
BEVERAGES
Coca-Cola Bottling Company Consolidated 11,500 557,750
Whitman Corporation 20,000 480,000
---------------
TOTAL BEVERAGES - 3.5% . . . . . . . . . . . . . . . . . $ 1,037,750
BUILDING MATERIALS
Medusa Corporation 18,000 690,750
---------------
TOTAL BUILDING MATERIALS - 2.3% . . . . . . . . . . . . . $ 690,750
CHEMICALS
Cabot Corporation 14,000 397,250
Ecolab Inc. 12,000 573,000
M.A. Hanna Company 20,325 585,614
RPM, Inc. 25,000 459,375
---------------
TOTAL CHEMICALS - 6.8% . . . . . . . . . . . . . . . . . $ 2,015,239
COMMUNICATIONS EQUIPMENT
Cabletron Systems, Inc.* 14,100 399,206
---------------
TOTAL COMMUNICATIONS EQUIPMENT - 1.3% . . . . . . . . . . $ 399,206
COMPUTER SOFTWARE
Business Objects, S.A., ADR* 45,000 438,750
Keane, Inc.* 8,700 453,488
Sterling Commerce Inc.* 11,555 379,871
Sungard Data Systems, Inc.* 8,000 372,000
---------------
TOTAL COMPUTER SOFTWARE - 5.5% . . . . . . . . . . . . . $ 1,644,109
COMPUTER SYSTEMS
EMC Corporation* 19,500 760,500
Ingram Micro, Inc.* 15,350 370,318
Lexmark International Group, Inc.* 21,000 637,875
Sequent Computer Systems, Inc.* 27,500 579,219
---------------
TOTAL COMPUTER SYSTEMS -7.9% . . . . . . . . . . . . . . $ 2,347,912
ELECTRIC UTILITIES
Illinova Corporation 15,000 330,000
TECO Energy, Inc. 17,400 444,788
Wisconsin Energy Corporation 13,800 343,275
---------------
TOTAL ELECTRIC UTILITIES - 3.8% . . . . . . . . . . . . . $ 1,118,063
ELECTRONICS - SEMICONDUCTORS
Adaptec, Inc.* 12,000 417,000
Xilinx, Inc.* 9,000 441,563
---------------
TOTAL ELECTRONICS - SEMICONDUCTORS - 2.9% . . . . . . . . $ 858,563
ENERGY SERVICES
Smith International, Inc.* 10,500 637,875
Tidewater Inc. 14,000 616,000
---------------
TOTAL ENERGY SERVICES - 4.2% . . . . . . . . . . . . . . $ 1,253,875
</TABLE>
*Non-dividend paying security.
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
9
<PAGE> 12
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 UNAUDITED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stocks Number of Shares Dollar Value
- ------------- ---------------- ------------
<S> <C> <C>
ENTERTAINMENT AND LEISURE
K2, Inc. 23,000 728,813
---------------
TOTAL ENTERTAINMENT AND LEISURE - 2.4% . . . . . . . . . $ 728,813
FINANCIAL - BROKERAGE
Quick & Reilly Group, Inc. 14,500 337,125
---------------
TOTAL FINANCIAL - BROKERAGE - 1.1% . . . . . . . . . . . $ 337,125
FINANCIAL - INSURANCE
AON Corporation 9,000 465,750
Equitable of Iowa Companies 12,000 672,000
Reliastar Financial Corporation 11,600 848,250
Transatlantic Holdings, Inc. 7,500 744,375
---------------
TOTAL FINANCIAL - INSURANCE - 9.2% . . . . . . . . . . . $ 2,730,375
FINANCIAL - REGIONAL BANKS
Bank of New York Co., Inc. 11,800 513,300
First Union Corporation 7,015 648,888
Southtrust Corporation 16,000 662,000
---------------
TOTAL FINANCIAL - REGIONAL BANKS - 6.1% . . . . . . . . . $ 1,824,188
FOODS AND FOOD RETAILERS
Performance Food Group Company* 15,000 315,000
Tootsie Roll Industries 12,300 547,350
---------------
TOTAL FOODS AND FOOD RETAILERS - 2.9% . . . . . . . . . . $ 862,350
HEALTH CARE - DRUGS
Biogen, Inc.* 10,000 338,750
Centocor, Inc.* 11,000 341,688
Elan Corporation PLC, ADR* 10,000 452,500
Watson Pharmaceutical, Inc.* 6,000 253,500
---------------
TOTAL HEALTH CARE - DRUGS - 4.7% . . . . . . . . . . . . $ 1,386,438
HEALTH CARE - PRODUCTS
Guidant Corporation 4,500 382,500
U.S. Surgical Corporation 10,000 372,500
---------------
TOTAL HEALTH CARE - PRODUCTS - 2.5% . . . . . . . . . . . $ 755,000
HEALTH CARE - SERVICES
Genesis Health Ventures* 10,000 337,500
Vencor, Inc.* 14,000 591,500
---------------
TOTAL HEALTH CARE - SERVICES - 3.1% . . . . . . . . . . . $ 929,000
INDUSTRIAL SERVICES
G & K Services, Inc., Class A 19,700 733,825
---------------
TOTAL INDUSTRIAL SERVICES - 2.5% . . . . . . . . . . . . $ 733,825
MACHINERY
Kennametal, Inc. 13,500 580,500
Waterlink, Inc.* 5,000 65,000
---------------
TOTAL MACHINE TOOLS - 2.2% . . . . . . . . . . . . . . . $ 645,500
</TABLE>
*Non-dividend paying security.
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
10
<PAGE> 13
OPPORTUNITY FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 UNAUDITED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Stocks Number of Shares Dollar Value
- ------------- ---------------- ------------
<S> <C> <C>
MEDIA AND PUBLISHING
Reynolds & Reynolds Company, Class A 26,000 409,500
---------------
TOTAL MEDIA AND PUBLISHING - 1.4% . . . . . . . . . . . . $ 409,500
NATURAL GAS
National Fuel Gas Company 8,000 335,500
---------------
TOTAL NATURAL GAS - 1.1% . . . . . . . . . . . . . . . . . . 335,500
OFFICE SUPPLIES
Herman Miller, Inc. 24,000 864,000
Staples, Inc.* 23,250 537,655
---------------
TOTAL OFFICE SUPPLIES - 4.7% . . . . . . . . . . . . . . $ 1,401,655
OIL PRODUCTION AND EXPLORATION
Vastar Resources, Inc. 13,000 455,813
---------------
TOTAL OIL PRODUCTION AND EXPLORATION - 1.5% . . . . . . . $ 455,813
RESTAURANTS
Wendy's International, Inc. 18,000 466,875
---------------
TOTAL RESTAURANTS - 1.6% . . . . . . . . . . . . . . . . $ 466,875
RETAILING
Arbor Drugs, Inc. 24,000 483,000
Dollar General Corporation 21,250 796,875
Gap, Inc. 19,500 758,063
Petsmart, Inc.* 10,000 115,000
---------------
TOTAL RETAILING - 7.2% . . . . . . . . . . . . . . . . . $ 2,152,938
TELECOMMUNICATION SERVICES
Century Telephone Enterprises 16,000 539,000
---------------
TOTAL TELECOMMUNICATION SERVICES - 1.8% . . . . . . . . . $ 539,000
TRANSPORTATION SERVICES
Air Express International 10,000 397,500
---------------
TOTAL TRANSPORTATION SERVICES - 1.3% . . . . . . . . . . $ 397,500
WASTE MANAGEMENT
U.S.A. Waste Services, Inc.* 18,450 712,630
---------------
TOTAL WASTE MANAGEMENT - 2.4% . . . . . . . . . . . . . . $ 712,630
TOTAL COMMON STOCKS - 97.9% . . . . . . . . . . . . . . . . $ 29,169,492
(Common Stock Identified Cost $21,952,812)
CASH EQUIVALENTS
Federated U.S. Treasury Cash Reserves Money Market Fund 617,666
---------------
TOTAL CASH EQUIVALENTS - 2.1% . . . . . . . . . . . . . . $ 617,666
(Cash Equivalents Identified Cost $617,666)
TOTAL PORTFOLIO VALUE - 100.0% . . . . . . . . . . . . . . $ 29,787,158
(Total Portfolio Identified Cost $22,570,478)
Other Assets Less Liabilities . . . . . . . . . . . . . . $ (2,262)
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . $ 29,784,896
</TABLE>
*Non-dividend paying security.
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
11
<PAGE> 14
<TABLE>
<CAPTION>
FIXED INCOME FUND PORTFOLIO OF INVESTMENTS JUNE 30, 1997 - UNAUDITED
FIXED INCOME SECURITIES - BONDS FACE VALUE DOLLAR VALUE
------------------------------- ---------- ------------
<S> <C> <C>
BANK BONDS - MAJOR REGIONAL
Banc One Corporation, 7.25% Due 8/1/02 200,000 203,000
Comerica Bank Subordinated Note, 6.875% Due 3/1/08 250,000 243,438
CoreStates Capital, 6.625% Due 3/15/05 200,000 193,750
First Union Corporation, 7.5% Due 7/15/06 250,000 255,000
NBD Bancorp, 7.125% Due 5/15/07 400,000 397,500
PNC Funding Corp. Subordinated Debenture, 6.875% Due 3/1/03 200,000 198,750
Star Bank N.A., 6.625% Due 12/15/06 250,000 240,312
----------
TOTAL MAJOR REGIONAL BANKS - 10.2% .....................................................$1,731,750
BANK BONDS - MONEY CENTER
Bankers Trust Subordinated Debenture, 7.125% Due 7/31/02 200,000 201,500
Republic New York Corporation, 7.25% Due 7/15/02 200,000 203,250
----------
TOTAL MONEY CENTER BANKS - 2.4%.........................................................$ 404,750
CAPITAL EQUIPMENT
G.E. Corporation Medium Term Note, 6.87% Due 12/29/99 250,000 252,812
Honeywell, Inc., 7.125% Due 4/15/08 400,000 401,000
Illinois Tool Works, Inc., 5.875% Due 3/1/00 200,000 196,750
----------
TOTAL CAPITAL EQUIPMENT - 5.0%..........................................................$ 850,562
CHEMICALS
Hercules, Inc., 6.625% Due 6/1/03 250,000 245,000
----------
TOTAL CHEMICALS - 1.4% .................................................................$ 245,000
ELECTRIC UTILITIES
Carolina Power and Light Company, 6.75% Due 10/1/02 250,000 249,375
Louisville Gas & Electric Company, 7.50% Due 7/1/02 25,000 25,312
Midwest Power Corporation, 7.00% Due 2/15/05 200,000 198,750
Pacific Gas & Electric Company, 6.875% Due 12/1/99 40,000 40,200
Public Service Electric & Gas Company, 6.50% Due 5/1/04 200,000 194,750
Union Electric Power Co., First Mortgage, 6.875% Due 8/1/04 200,000 199,750
----------
TOTAL ELECTRIC UTILITIES - 5.3% ........................................................$ 908,137
ENTERTAINMENT AND LEISURE
Walt Disney Company, 5.80% Due 10/27/08 400,000 362,000
----------
TOTAL ENTERTAINMENT AND LEISURE - 2.1% ................................................ $ 362,000
FINANCIAL - INSURANCE
Allstate Insurance Company, 5.875% Due 6/15/98 250,000 249,887
----------
TOTAL FINANCIAL - INSURANCE - 1.5% .................................................... $ 249,887
FINANCIAL - SERVICES
American General Finance, 8.125% Due 8/15/09 120,000 128,700
Associates Corporation, N.A., 6.00% Due 3/15/00 200,000 197,250
CIT Group Holdings, 8.375% Due 11/01/01 250,000 265,000
G.E. Capital Corporation Medium Term Note, 6.59% Due 1/15/98 30,000 30,162
General Motors Acceptance Corp. Medium Term Note, 6.10% Due 9/11/97 200,000 200,196
Household Finance Corporation Senior Note, 6.875% Due 3/01/03 200,000 200,000
International Lease Finance Corporation, 6.50% Due 8/15/99 200,000 200,750
----------
TOTAL FINANCIAL - SERVICES - 7.2% ......................................................$1,222,058
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
12
<PAGE> 15
<TABLE>
<CAPTION>
FIXED INCOME FUND PORTFOLIO OF INVESTMENTS JUNE 30, 1997 - UNAUDITED
FIXED INCOME SECURITIES - BONDS FACE VALUE DOLLAR VALUE
- ------------------------------- ---------- ------------
<S> <C> <C>
FOOD AND BEVERAGE
Pepsico, Inc. Medium Term Note, 5.463% Due 7/1/98 200,000 198,768
Sara Lee Corporation, Medium Term Note, 5.70% Due 7/14/00 250,000 244,375
----------
TOTAL FOOD AND BEVERAGE - 2.6%................................................... $ 443,143
FOREIGN UTILITIES (U.S. DOLLAR DENOMINATED)
Hydro Quebec Medium Term Note, 6.98% Due 3/01/05 200,000 198,750
----------
TOTAL FOREIGN UTILITIES - 1.2% ................................................. $ 198,750
MORTGAGE BACKED SECURITIES - UNITED STATES GOVERNMENT AGENCY
OBLIGATIONS
Federal Farm Credit Bank Indexed Amortization Note
Series G-02, 6.71% Due 3/25/02 250,000 250,498
Federal Home Loan Bank Indexed Amortization Note
Series DJ-03, 6.625% Due 12/23/03 250,000 245,627
Federal Home Loan Mortgage Corporation Indexed Amortization Note
Series B-04, 6.83% Due 3/20/04 300,000 297,042
Federal Home Loan Mortgage Corporation, CMO Series 1639-PD
5.60% Due 8/15/06 250,000 245,794
Federal Home Loan Mortgage Corporation, CMO Series 1660-G
6.25% Due 7/15/07 250,000 245,275
Federal Home Loan Mortgage Corporation, 15 Year Gold
7.00% Due 3/01/11 386,320 385,959
----------
TOTAL MORTGAGE BACKED SECURITIES - GOVERNMENT AGENCY - 9.8%........................ $1,670,195
NEWSPAPER/PUBLISHING
Scripps Howard Corporation, 7.375% Due 12/15/98 225,000 228,103
----------
TOTAL NEWSPAPER/PUBLISHING - 1.3%.................................................... $ 228,103
PETROLEUM
Amoco Corporation Canada, 7.25% Due 12/1/02 200,000 205,250
Texaco Capital, Inc., 6.875% Due 7/15/99 200,000 202,250
----------
TOTAL PETROLEUM - 2.4%............................................................... $ 407,500
RAILROADS
CSX Transportation Equipment Trust, 6.07% Due 3/15/01 200,000 194,750
Union Pacific Corporation, 6.25% Due 3/15/99 250,000 249,063
----------
TOTAL RAILROADS - 2.6% ............................................................. $ 443,813
RETAILING
Sherwin-Williams Company, 6.85% Due 2/01/07 250,000 247,188
Wal-Mart Stores, Inc., 6.375% Due 3/01/03 200,000 196,000
----------
TOTAL RETAILING - 2.6% ............................................................. $ 443,188
REAL ESTATE INVESTMENT TRUSTS
Merry Land & Investment Company, Inc., 7.25% Due 6/15/05 400,000 391,500
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS - 2.3% ......................................... $ 391,500
TELECOMMUNICATIONS
Cincinnati Bell, Inc., 6.24% Due 12/30/03 250,000 242,500
New York Telephone Co., 5.875% Due 9/1/03 200,000 190,000
SBC Communications Inc., 7.00% Due 7/15/04 200,000 201,500
Southwestern Bell Corporation, 6.375% Due 4/1/01 200,000 198,500
----------
TOTAL TELECOMMUNICATIONS - 4.9%.................................................... $ 832,500
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
13
<PAGE> 16
<TABLE>
<CAPTION>
FIXED INCOME FUND PORTFOLIO INVESTMENTS JUNE 30, 1997 - UNAUDITED
FIXED INCOME SECURITIES - BONDS FACE VALUE DOLLAR VALUE
- ------------------------------- ---------- ------------
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
<S> <C> <C>
Federal Home Loan Bank, 6.10% Due 12/13/10 250,000 233,782
Federal Home Loan Bank, 7.03% Due 5/6/11 250,000 252,522
Federal Home Loan Mortgage Corporation, 6.55% Due 1/4/00 200,000 200,912
Federal Home Loan Mortgage Corporation, 8.155% Due 3/9/05 150,000 151,542
Federal Home Loan Mortgage Corporation, 7.35% Due 3/22/05 300,000 310,095
Federal Home Loan Mortgage Corporation, 6.005% Due 12/8/05 200,000 190,148
Federal Home Loan Mortgage Corporation, 5.95% Due 1/19/06 400,000 378,700
Federal National Mortgage Association, 6.10% Due 2/10/00 250,000 248,498
Federal National Mortgage Association, 7.50% Due 2/11/02 200,000 207,346
Federal National Mortgage Association, 7.55% Due 4/22/02 200,000 208,024
Federal National Mortgage Association, 7.80% Due 3/29/05 200,000 202,164
Federal National Mortgage Association, 5.80% Due 2/22/06 450,000 421,461
-----------
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 17.6......................... $ 3,005,194
UNITED STATES GOVERNMENT OBLIGATIONS
United States Treasury Note, 8.50% Due 11/15/00 350,000 372,988
United States Treasury Note, 7.875% Due 8/15/01 400,000 421,500
United States Treasury Note, 7.50% Due 11/15/01 400,000 416,700
United States Treasury Note, 7.875% Due 11/15/04 325,000 350,392
United States Treasury Note, 5.625% Due 2/15/06 500,000 469,245
United States Treasury Note, 6.875% Due 5/15/06 500,000 510,090
United States Treasury Bond, 6.25% Due 2/15/07 250,000 244,533
-----------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 16.4% ............................... $ 2,785,448
TOTAL FIXED INCOME - BONDS - 98.8% ...................................................... $16,823,478
(Fixed Income Identified Cost $16,844,346)
CASH EQUIVALENTS
Federated U.S. Treasury Cash Reserves 202,132
-----------
TOTAL CASH EQUIVALENTS - 1.2% ................................................ $ 202,132
(Cash Equivalents Identified Cost $202,132)
TOTAL PORTFOLIO VALUE - 100.0% .......................................................... $17,025,610
(Total Portfolio Identified Cost $17,046,478)
Other Assets Less Liabilities ...................................................... $ 26,959
TOTAL NET ASSETS..................................................................... $17,052,569
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
14
<PAGE> 17
<TABLE>
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 - UNAUDITED
<CAPTION>
FIXED INCOME SECURITIES - MUNICIPAL BONDS FACE VALUE DOLLAR VALUE
- ----------------------------------------- ---------- ------------
<S> <C> <C>
BUILDING AUTHORITY
Ohio State Building Authority, Administration Building Fund
Project A, 6.40% Due 10/1/01 50,000 53,626
Ohio State Building Authority, Administrative Building Fund
Projects (MBIA Insured), 5.40% Due 10/1/02 90,000 93,585
Ohio State Building Authority, Correctional Facilities, Series A
Prerefunded to 3/1/99 at 102, 7.30% Due 3/1/02 50,000 53,507
Ohio State Building Authority, Ohio Center For The Arts,
5.45% Due 10/01/07 100,000 103,846
Ohio State Building Authority, State Correctional Facilities
Refunding Series 1991 A, 6.50% Due 10/1/01 50,000 53,797
------------
TOTAL BUILDING AUTHORITY - 10.4% . . . . . . . . . . . . . . . . . . . .$ 358,361
GENERAL OBLIGATION
Anderson Township, Ohio Park District General Obligation 100,000 100,875
5.10% Due 3/01/99
Belmont County, Ohio General Obligation, (MBIA Insured),
5.10% Due 12/01/05 50,000 50,721
Butler County, Ohio Infrastructure Special Assessment
General Obligation (AMBAC Insured), 4.90% Due 12/1/98 50,000 50,602
Cincinnati, Ohio General Obligation, 5.25% Due 12/1/00 50,000 51,458
Cleveland, Ohio General Obligation, (AMBAC Insured),
4.9% Due 9/1/02 50,000 50,777
Columbus, Ohio General Obligation, 12.375% Due 2/15/07 25,000 38,705
Delaware County, Ohio General Obligation, 5.25% Due 12/1/06 50,000 50,602
Fayette County, Ohio General Obligation, 5.10% Due 12/1/03 40,000 40,472
Hamilton County, Ohio General Obligation, Museum Center
Building Improvement, 5.75% Due 12/01/00 50,000 52,082
Lakewood, Ohio General Obligation, 6.75% Due 12/1/97 50,000 50,588
Medina County, Ohio General Obligation, 12.625% Due 12/1/99 25,000 29,658
Montgomery County, Ohio General Obligation, 5.30% Due 12/01/00 75,000 77,160
Trumbull County, Ohio General Obligation, 5.25% Due 12/1/05 50,000 51,652
Vandalia, Ohio General Obligation, 4.80% Due 12/01/03 75,000 75,768
Westlake, Ohio General Obligation, 4.90% Due 12/01/04 50,000 50,368
------------
TOTAL GENERAL OBLIGATION - 24.0% . . . . . . . . . . . . . . . . . . . .$ 821,488
HIGHER EDUCATION
Ohio State Public Facilities Commission, Higher Education Capital
Facility, Series 11A (AMBAC Insured), 4.70% Due 6/1/00 75,000 75,749
Ohio State Higher Education Facilities, Denison University,
4.90% Due 11/01/05 75,000 75,103
Ohio State Higher Education Facilities,
Series 11-B, 5.90% Due 12/1/05 50,000 52,889
University of Cincinnati, Ohio General Receipts, 4.65% Due 6/1/98 50,000 50,153
University of Cincinnati, Ohio General Receipts, 4.75% Due 6/1/06 50,000 49,399
------------
TOTAL HIGHER EDUCATION - 8.8% . . . . . . . . . . . . . . . . . . . . . $ 303,293
</TABLE>
The accompanying notes are an integral part of the financial statements
(see pages 26-28)
15
<PAGE> 18
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 - UNAUDITED
<TABLE>
<CAPTION>
FIXED INCOME SECURITIES - MUNICIPAL BONDS FACE VALUE DOLLAR VALUE
- ----------------------------------------- ---------- ------------
<S> <C> <C>
HOSPITAL/HEALTH
Episcopol Retirement Homes, Ohio Hospital Facility
Revenue, 5.00% Due 1/01/15 100,000 100,193
Franklin County, Ohio Hospital Refunding, The Children's
Hospital Project, 5.20% Due 11/1/04 50,000 51,282
Hamilton County, Ohio Hospital Facility Revenue, 6.35% Due 1/1/98 50,000 50,515
Hamilton County, Ohio Hospital Facility Revenue, Children's Hospital
(FGIC Insured), 5.00% Due 5/15/06 50,000 50,219
Lorain County, Ohio Hospital Facility Revenue Catholic Healthcare
Partners (MBIA), 6.00% Due 9/01/07 50,000 54,086
Maumee, Ohio Hospital Facility Revenue, St. Lukes Hospital Project
(AMBAC Insured), 4.90% Due 12/1/99 50,000 50,793
Ohio State Public Facilities Commission Mental Health Facilities,
Series 11B (FSA Insured), 4.25% Due 6/1/99 50,000 50,062
----------
TOTAL HOSPITAL/HEALTH - 11.8% . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 407,150
SCHOOL DISTRICT
Centerburg, Ohio Local School District, 5.25% Due 10/15/01 40,000 40,854
Centerville, Ohio City School District General Obligation
(FGIC Insured), 5.10% Due 12/1/03 50,000 51,394
Cincinnati, Ohio School District Series A, (AMBAC Insured),
4.65% Due 12/01/99 50,000 50,338
Cleveland, Ohio City School District Refunding Series B
(FGIC Insured), 5.40% Due 6/1/02 50,000 51,832
Cook County, Illinois School District General Obligation
(AMBAC Insured), 5.20% Due 12/1/01 50,000 51,443
Forest Hills, Ohio Local School District, 4.90% Due 12/01/04 100,000 100,055
Gallia County, Ohio Local School District General Obligation
5.00% Due 3/1/03 25,000 25,028
Gallia County, Ohio Local School District General Obligation
5.00% Due 3/1/04 25,000 24,826
Indian Valley School District, Ohio General Obligation
(AMBAC Insured), 5.50% Due 12/1/06 50,000 52,137
Olmsted Falls, Ohio City School District General Obligation
(FGIC Insured), 5.30% Due 12/15/00 50,000 51,441
Southwestern City School District, Ohio, Franklin County and
Pickaway County, 6.25% Due 12/1/05 50,000 53,558
Stow, Ohio City School District, 9.125% Due 12/01/99 50,000 55,125
West Geauga, Ohio Local School District, School Improvement
General Obligation (AMBAC Insured), 5.45% Due 11/1/04 50,000 52,362
Westlake, Ohio City School District School Improvement
Bonds, 4.85% Due 12/01/03 100,000 100,968
Woodridge, Ohio Local School District General Obligation,
Summit County (AMBAC Insured), 5.45% Due 12/01/04 50,000 52,323
----------
TOTAL SCHOOL DISTRICT - 23.6% . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 813,684
</TABLE>
The accompanying notes are an integral part of the financial statements
(see pages 26-28)
16
<PAGE> 19
MUNICIPAL INCOME FUND, PORTFOLIO OF INVESTMENTS JUNE 30, 1997 - UNAUDITED
<TABLE>
<CAPTION>
FIXED INCOME SECURITIES - MUNICIPAL BONDS FACE VALUE DOLLAR VALUE
- ----------------------------------------- ---------- ------------
<S> <C> <C>
UTILITIES
Weatherford, Texas Utility System Revenue, Series 1994
(MBIA Insured), 5.10% Due 9/1/03 50,000 51,020
------------
TOTAL UTILITIES - 1.5% . . . . . . . . . . . . . . . . . . . . . . . . $ 51,020
WATER AND SEWER
Akron, Ohio Sewer System Revenue (MBIA Insured)
5.50% Due 12/1/07 50,000 52,484
Celina, Ohio Wastewater System Mortgage Revenue
(FGIC Insured), 5.60% Due 11/01/99 40,000 41,154
Cleveland, Ohio Waterworks Revenue First Mortgage,
Series G (MBIA Insured), 5.25% Due 1/1/04 50,000 51,574
Columbus, Ohio Sewer System Revenue, 5.40% Due 6/01/98 50,000 50,524
Lorain, Ohio Water System Revenue (AMBAC Insured),
4.75% Due 4/01/04 50,000 49,934
Miamisburg, Ohio Sewer System Refunding (AMBAC Insured),
4.35% Due 11/15/02 50,000 49,440
Montgomery County, Ohio Solid Waste Revenue
(MBIA Insured), 5.125% Due 11/01/08 50,000 50,353
Ohio State Water Development Authority (MBIA Insured),
5.00% Due 12/1/98 50,000 50,643
Ohio State Water Development Authority (MBIA Insured),
5.50% Due 6/01/01 50,000 51,845
Southwest Ohio Regional Water District Waterworks Revenue
5.25% Due 12/1/05 50,000 51,165
Warren County, Ohio Water and Sewer Line Extension, Special
Assessment Bonds, Series 1994, 5.50% Due 12/1/03 50,000 52,381
------------
TOTAL WATER AND SEWER - 16.0% . . . . . . . . . . . . . . . . . . . . . $ 551,497
TOTAL FIXED INCOME - MUNICIPAL BONDS - 96.1% . . . . . . . . . . . . . . . . $ 3,306,493
(Municipal Bonds Identified Cost $3,254,546 )
CASH EQUIVALENTS
Federated Ohio Municipal Cash Trust 134,532
------------
Total Cash Equivalents - 3.9% . . . . . . . . . . . . . . . . . . . . . .$ 134,532
(Cash Identified Cost $134,532)
TOTAL PORTFOLIO VALUE - 100.0% . . . . . . . . . . . . . . . . . . . . . . . $ 3,441,025
(Total Portfolio Identified Cost $3,389,078)
Other Assets Less Liabilities . . . . . . . . . . . . . . . . . . . . . . .$ (7,271)
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,433,754
</TABLE>
The accompanying notes are an integral part of the financial statements
(see pages 26-28)
17
<PAGE> 20
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 1997 - UNAUDITED
STOCK FUNDS BOND FUNDS
----------------------------- ----------------------------
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investment Securities $28,048,062 $29,787,158 $17,025,610 $ 3,441,025
at Market Value*
Dividends and Interest Receivable 51,329 21,616 282,931 28,998
Receivable for Securities Sold 0 0 0 0
----------- ----------- ----------- -----------
TOTAL ASSETS....................... $28,099,391 $29,808,774 $17,308,541 $ 3,470,023
LIABILITIES:
Investment Securities Purchased 524,480 0 0 0
Dividends Payable 61,238 0 243,870 34,155
Accrued Management Fees 22,470 23,878 12,102 2,114
----------- ----------- ----------- -----------
TOTAL LIABILITIES................. $ 608,188 $ 23,878 $ 255,972 $ 36,269
NET ASSETS............................. $27,491,203 $29,784,896 $17,052,569 $ 3,433,754
NET ASSETS CONSISTS OF:
Paid in Capital 18,867,204 21,905,516 17,120,756 3,380,032
Undistributed Net
Investment Income 9,965 34,229 21,119 1,749
Undistributed Net Realized Gain
(Loss) from Security Transactions 1,544,836 628,471 (68,439) 26
Net Unrealized Gain (Loss)
on Investments 7,069,198 7,216,680 (20,868) 51,947
----------- ----------- ----------- -----------
NET ASSETS............................ $27,491,203 29,784,896 $17,052,568 $ 3,433,754
Shares Outstanding ................... 1,113,412 1,181,857 1,108,502 220,354
OFFERING, REDEMPTION AND
NET ASSET VALUE PER SHARE............. $ 24.69 $ 25.20 $ 15.38 $ 15.58
*Identified Cost...................... $20,978,864 $22,570,478 $17,046,478 $ 3,389,078
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
18
<PAGE> 21
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS JUNE 30, 1997 - UNAUDITED
STOCK FUNDS BOND FUNDS
-------------------------- -----------------------------
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
----------- ----------- ----------- -----------
PERIOD PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
6/30/97 6/30/97 6/30/97 6/30/97
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 25,076 $ 27,925 552,066 $ 77,906
Dividends 207,564 134,196 0 0
----------- ----------- ----------- -----------
TOTAL INVESTMENT INCOME $ 232,640 $ 162,121 $ 552,066 $ 77,906
EXPENSES:
Gross Management Fee 160,295 166,310 95,699 18,658
Management Fee Waiver
(See accompanying note #3) (36,991) (38,379) (24,965) (6,490)
----------- ----------- ----------- -----------
TOTAL EXPENSES.................. $ 123,304 $ 127,931 $ 70,734 $ 12,168
NET INVESTMENT INCOME................... $ 109,336 $ 34,190 $ 481,332 $ 65,738
REALIZED AND UNREALIZED GAINS (LOSSES):
Net Realized Gain (Loss) from
Security Transactions 1,544,779 628,471 (16,815) 205
Net Unrealized Gain (Loss)
on Investments 2,317,310 2,215,373 (71,529) 2,000
----------- ----------- ----------- -----------
NET GAIN (LOSS) ON INVESTMENTS.......... $ 3,862,089 $ 2,843,844 $ (88,344) $ 2,205
NET INCREASE IN ASSETS
FROM OPERATIONS....................... $ 3,971,425 $ 2,878,034 $ 392,988 $ 67,943
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
19
<PAGE> 22
<TABLE>
<CAPTION>
STATEMENT OF CHANGRES IN NET ASSETS JUNE 30, 1997: UNAUDITED
STOCK FUNDS
---------------------------------------------------------------------
GROWTH FUND OPPORTUNITY FUND
--------------------------------- --------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
6/30/97 12/31/96 6/30/97 12/31/96
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 109,336 $ 187,238 $ 34,190 $ 54,469
Net Realized Gain (Loss)
from Security Transactions 1,544,779 683,564 628,471 1,170,699
Net Unrealized Gain (Loss)
on Investments 2,317,310 2,082,615 2,215,373 2,882,162
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN
ASSETS FROM OPERATIONS.............. $ 3,971,425 $ 2,953,417 $ 2,878,034 $ 4,107,330
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (99,371) (187,246) 0 (54,430)
Net Realized Gain from
Security Transactions 0 (683,506) 0 (1,170,723)
------------ ------------ ------------ ------------
NET DECREASE IN ASSETS
FROM DISTRIBUTIONS................... $ (99,371) $ (870,752) $ 0 $ (1,225,153)
CAPITAL SHARE TRANSACTIONS:
Proceeds From Sale of Shares 2,582,678 4,956,433 4,032,335 5,387,376
Net Asset Value of Shares Issued on
Reinvestment of Distributions 667,615 378,150 1,135,487 45,955
Cost of Shares Redeemed (1,053,858) (862,984) (352,863) (1,414,677)
------------ ------------ ------------ ------------
NET INCREASE IN ASSETS FROM
CAPITAL SHARE TRANSACTIONS........... $ 2,196,436 $ 4,471,599 $ 4,814,959 $ 4,018,654
NET CHANGE IN NET ASSETS............... $ 6,068,490 $ 6,554,264 $ 7,692,993 $ 6,900,831
Net Assets at Beginning of Period...... $ 21,422,713 $ 14,868,449 $ 22,091,903 $ 15,191,072
NET ASSETS AT END OF PERIOD............ $ 27,491,203 $ 21,422,713 $ 29,784,896 $ 22,091,903
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
20
<PAGE> 23
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS JUNE 30, 1997 UNAUDITED
<CAPTION>
BOND FUNDS
----------------------------------------------------------------------
FIXED INCOME FUND MUNICIPAL INCOME FUND
-------------------------------- --------------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
6/30/97 12/31/96 6/30/97 12/31/96
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net Investment Income $ 481,332 $ 878,629 $ 65,738 $ 101,166
Net Realized Gain (Loss)
from Security Transactions (16,815) (28,072) 205 (179)
Net Unrealized Gain (Loss)
on Investments (71,529) (362,410) 2,000 (14,667)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN
ASSETS FROM OPERATIONS................ $ 392,988 $ 488,147 $ 67,943 $ 86,320
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (460,249) (878,592) (63,989) (101,172)
Net Realized Gain from
Security Transactions 0 0 0 0
------------ ------------ ------------ ------------
NET DECREASE IN ASSETS
FROM DISTRIBUTIONS.................... $ (460,249) $ (878,592) $ (63,989) $ (101,172)
CAPITAL SHARE TRANSACTIONS:
Proceeds From Sale of Shares 2,104,046 3,685,344 775,269 590,156
Net Asset Value of Shares Issued on
Reinvestment of Dividends/Gains 311,765 590,859 17,015 69,737
Cost of Shares Redeemed (1,435,100) (3,721,495) (177,143) (113,280)
------------ ------------ ------------ ------------
NET INCREASE IN ASSETS FROM
CAPITAL SHARE TRANSACTIONS............. $ 980,711 $ 554,708 $ 615,141 $ 546,613
NET CHANGE IN NET ASSETS ................ $ 913,450 $ 164,263 $ 619,095 $ 531,761
Net Assets at Beginning of Period ....... $ 16,139,119 $ 15,974,856 $ 2,814,659 $ 2,282,898
NET ASSETS AT END OF PERIOD ............. $ 17,052,569 $ 16,139,119 $ 3,433,754 $ 2,814,659
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
21
<PAGE> 24
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
GROWTH FUND
-----------------------------------------------------------------------
UNAUDITED YEAR ENDED DECEMBER 31
1/1/97 TO -----------------------------------------------------
6/30/97 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period.................... $ 21.16 $ 18.86 $ 14.81 $ 15.71 $ 15.00
OPERATIONS:
Net Investment Income 0.10 0.19 0.24 0.24 0.18
Net Gains (Losses) on Securities
(Realized & Unrealized) 3.52 2.98 4.42 (0.90) 0.71
-------- -------- -------- -------- --------
TOTAL OPERATIONS......................... $ 3.62 $ 3.17 $ 4.66 $ (0.66) $ 0.89
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.09) (0.19) (0.24) (0.24) (0.18)
Distributions from Net
Realized Capital Gains 0.00 (0.68) (0.37) 0.00 0.00
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS...................... $ (0.09) $ (0.87) $ (0.61) $ (0.24) $ (0.18)
Net Asset Value
End of Period........................ $ 24.69 $ 21.16 $ 18.86 $ 14.81 $ 15.71
TOTAL RETURN............................. 17.13% 16.85% 31.61% (4.22%) 5.93%
Net Assets, End of Period
(Millions) $ 27.49 $ 21.42 $ 14.87 $ 9.30 6.58
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 (2)............... 0.89% 0.99% 1.42% 1.65% 1.38%
Portfolio Turnover Rate.................. 34.84% 26.78% 52.91% 30.38% 23.57%
Average Commission Rate
(cents per share)....................... $ .0677 $ 0.0799
<FN>
- ---------------------------
(1) The Adviser intends fee waivers of 0.30% to be permanent, although the
Adviser retains the right to remove the waivers after 12/31/97. As of
6/30/97, assuming no waiver of management fee expenses, the Growth Fund
ratios would have been: expenses to average net assets of 1.30%; and net
income to average net assets of 0.59% (see note #3 on pages 26-27).
(2) Ratios have been annualized in 1997.
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
22
<PAGE> 25
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
OPPORTUNITY FUND
------------------------------------------
UNAUDITED YEAR ENDED DECEMBER 31
1/1/97 TO ---------------------- 5/16/94-
6/30/97 1996 1995 12/31/94
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value
Beginning of Period................. $ 22.65 $ 19.42 $ 15.70 $ 15.00
OPERATIONS:
Net Investment Income 0.03 0.06 0.08 0.05
Net Gains (Losses) on Securities
(Realized & Unrealized) 2.52 4.43 3.89 0.70
-------- -------- -------- --------
TOTAL OPERATIONS ..................... $ 2.55 $ 4.49 $ 3.97 $ 0.75
DISTRIBUTIONS:
Dividends from Net
Investment Income 0.00 (0.06) (0.08) (0.05)
Distributions from Net
Realized Capital Gains 0.00 (1.20) (0.17) 0.00
-------- -------- -------- --------
TOTAL DISTRIBUTIONS................... $ 0.00 $ (1.26) $ (0.25) $ (0.05)
Net Asset Value
End of Period........................ $ 25.20 $ 22.65 $ 19.42 $ 15.70
TOTAL RETURN ......................... 11.26% 23.10% 25.27% 4.99%
Net Assets, End of Period
(Millions) ........................ $ 29.78 $ 22.09 $ 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%
Ratio of Net Income to
Average Net Assets (2) ........... 0.27% 0.28% 0.59% 1.01%
Portfolio Turnover Rate .............. 15.87% 46.43% 62.15% 58.73%
Average Commission Rate
(cents per share) ................... $ 0.0766 $ 0.0876
<FN>
- --------------------------
(1) The Adviser intends fee waivers of 0.30% to be permanent, although the
Adviser retains the right to remove the waivers after 12/31/97. As of 6/30/97,
assuming no waiver of management fee expenses, the Opportunity Fund ratios
would have been: expenses to average net assets of 1.30%; and net income to
average net assets of 0.0% (see note #3 on pages 26-27).
(2) Ratios have been annualized in 1994 and 1997.
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE> 26
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
FIXED INCOME FUND
--------------------------------------------------------------
UNAUDITED YEAR ENDED DECEMBER 31
1/1/97 TO ------------------------------------------------
6/30/97 1996 1995 1994 1993
--------- -------- -------- ------ -----
<S> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period ............... $ 15.45 $ 15.84 $ 14.20 $15.80 15.00
OPERATIONS:
Net Investment Income 0.44 0.86 0.83 0.80 0.60
Net Gains (Losses) on Securities
(Realized & Unrealized) (0.09) (0.39) 1.64 (1.60) 0.83
--------- -------- -------- ------ ------
TOTAL OPERATIONS...................... $ 0.35 $ 0.47 $ 2.47 $(0.80) $ 1.43
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.42) (0.86) (0.83) (0.80) (0.60)
Distributions from Net
Realized Capital Gains 0.00 0.00 0.00 0.00 (0.03)
--------- -------- -------- ------ ------
TOTAL DISTRIBUTIONS................... $ (0.42) $ (0.86) $ (0.83) $(0.80) (0.63)
Net Asset Value
End of Period ..................... $ 15.38 $ 15.45 $ 15.84 14.20 15.80
TOTAL RETURN 2.31% 3.11% 17.70% (5.14%) 9.51%
Net Assets, End of Period
(Millions)......................... $ 17.05 16.14 15.97 12.46 10.08
RATIOS AFTER FEE WAIVERS: (1)
Ratio of Expenses to
Average Net Assets (2) 0.85% 0.85% 0.85% 0.85% 0.85%
Ratio of Net Income to
Average Net Assets (2)............ 5.77% 5.56% 5.54% 5.53% 5.08%
Portfolio Turnover Rate .............. 11.23% 14.04% 4.95% 0.04% 10.14%
<FN>
- ---------------------------------
(1) The Adviser intends fee waivers of 0.30% to be permanent, although the
Adviser retains the right to remove the waivers after 12/31/97. As of
6/30/97, assuming no waiver of management fee expenses, the Fixed Income
Fund ratios would have been: expenses to average net assets of 1.15% and
net income to average net assets of 5.47% (see note #3 on pages 26-27).
(2) Ratios have been annualized in 1997.
</TABLE>
The accompanying notes are an integral part of the financial statements.
24
<PAGE> 27
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
MUNICIPAL INCOME FUND
---------------------------------------------------------
UNAUDITED YEAR ENDED DECEMBER 31
1/1/97 TO -------------------------- 5/16/94
6/30/97 1996 1995 12/31/94
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value
Beginning of Period . . . . . . . . . . $15.57 $15.68 $14.73 $15.00
OPERATIONS:
Net Investment Income 0.30 0.63 0.63 0.39
Net Gains (Losses) on Securities
(Realized & Unrealized) 0.01 (0.11) 0.96 (0.27)
------ ------ ------ ------
TOTAL OPERATIONS . . . . . . . . . . . . $ 0.31 $ 0.52 $ 1.59 $ 0.12
DISTRIBUTIONS:
Dividends from Net
Investment Income (0.30) (0.63) (0.63) (0.39)
Distributions from Net
Realized Capital Gains 0.00 0.00 (0.01) 0.00
------ ------ ------ ------
TOTAL DISTRIBUTIONS . . . . . . . . . . . $(0.30) $(0.63) $(0.64) $(0.39)
Net Asset Value
End of Period . . . . . . . . . . . . . $15.58 $15.57 $15.68 $14.73
TOTAL RETURN . . . . . . . . . . . . . . 1.95% 3.43% 10.88% 0.81%
Net Assets, End of Period
(Millions) . . . . . . . . . . . . . . $ 3.43 $ 2.81 2.28 1.49
RATIOS AFTER FEE WAIVERS: (1)
Ratio of Expenses to
Average Net Assets (2) . . . . . . . 0.75% 0.75% 0.68% 0.01%
Ratio of Net Income to
Average Net Assets (3) . . . . . . . 4.05% 4.18% 4.28% 5.46%
Portfolio Turnover Rate . . . . . . . . . 3.12% 6.25% 7.81% 0.00%
<FN>
- -------------------------
(1) The Adviser intends fee waivers of 0.40% to be permanent, although the
Adviser retains the right to remove the waivers after 12/31/97. As of
6/30/97, assuming no waiver of management fee expenses, the Municipal
Income Fund ratios would have been: expenses to average net assets of
1.15%; and net income to average net assets of 3.65% (see note #3 on pages
26-27).
(2) The Adviser waived 1.14% of the fee on the Municipal Income Fund in 1994,
0.47% of the fee in 1995 and 0.40% in 1996. During the first six months of
1997, the Adviser waived 0.40% of the fee, and intends to waive additional
fees for the remainder of the year. The Adviser anticipates an annualized
fee of less than 0.75% for 1997.
(3) Ratios have been annualized in 1994 and 1997.
</TABLE>
The accompanying notes are an integral part of the financial statements.
(see pages 26-28)
25
<PAGE> 28
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997 - UNAUDITED
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.
The Growth Fund and the Opportunity Fund both have investment objectives of long
term capital growth. The Fixed Income Fund has the investment objective of
seeking a high level of income over the long term. The Municiapl Income Fund has
an investment objective of seeking a high level of federally tax-free income
over the long term.
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.
26
<PAGE> 29
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997 - UNAUDITED
3) INVESTMENT ADVISORY AGREEMENT (CON'T):
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, 1997 as follows:
Growth Fund $123,304 Fixed Income Fund $70,734
Opportunity Fund $127,931 Municipal Income Fund $12,168
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, 1997. 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 during the first six months of
1997, intending these fee waivers to be permanent, although the Adviser has the
right to remove these fee waivers anytime after December 31, 1997. The Adviser
has waived additional fees for the remainder of the the year for the Municipal
Income Fund, and anticipates that the annualized fee will be less than 0.75% for
1997.
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 ending June 30, 1997, 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, 1997, 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, the Opportunity Fund, the Fixed Income Fund, and the Municipal Income
Fund.
Johnson Financial, Inc., a wholly owned subsidiary of Johnson Investment
Counsel, Inc., acts as transfer agent and fund accountant for the Funds. The
arrangement with Johnson Financial, Inc. will not cause any increase in fees to
the Funds or to shareholders because the Adviser pays all expenses for the
Trust, other than brokerage fees and commissions, taxes, interest and
extraordinary expenses. There have been no extraordinary expenses year to date.
5) PURCHASES AND SALES OF SECURITIES:
DURING THE 6 MONTHS ENDED JUNE 30, 1997:
GROWTH FUND: Purchases of investment securities other than U.S. Government
obligations and short term investments aggregated $10,710,810 and sales of
investment securities other than U.S. Government obligations and short term
investments aggregated $8,617,216. There were no purchases or sales of U.S.
Government obligations in the Fund.
OPPORTUNITY FUND: Purchases of investment securities other than U.S. Government
obligations and short term investments aggregated $8,204,846 and sales of
investment securities other than U.S. Government obligations and short term
investments aggregated $4,126,617. There were no purchases or sales of U.S.
Government obligations in the Fund.
27
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS JUNE 30, 1997 - UNAUDITED
- -------------------------------------------------------------------------------
5) PURCHASES AND SALES OF SECURITIES (CON'T):
DURING THE 6 MONTHS ENDED JUNE 30, 1997:
FIXED INCOME FUND: Purchases of investment securities other than U.S. Government
obligations and short term investments aggregated $2,612,593 and sales of
investment securities other than U.S. Government obligations and short term
investments aggregated $1,150,894. Purchases of U.S. Government obligations
aggregated $247,614 and sales of U.S. Government obligations aggregated
$705,668.
MUNICIPAL INCOME FUND: Purchases of investment securities other than U.S.
Government obligations and short term investments aggregated $651,088 and sales
of investment securities other than U.S. Government obligations and short term
investments aggregated $101,031. There were no purchases or sales of U.S.
Government obligations in the Fund.
6) CAPITAL SHARE TRANSACTIONS:
As of June 30, 1997, 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 - JUNE 30, 1997:
<TABLE>
<CAPTION>
FIXED MUNICIPAL
GROWTH OPPORTUNITY INCOME INCOME
FUND FUND FUND FUND
------ ---------- --------- ----------
<S> <C> <C> <C> <C>
Shares Sold to Investors 119,120 171,279 136,507 49,828
Shares Issued on Reinvestment Dividends 31,531 50,132 20,399 1,101
-------- -------- -------- --------
Subtotal 150,651 221,411 156,906 50,929
Shares Redeemed (49,692) (14,994) (92,985) (11,338)
-------- ---------- -------- --------
Net Increase 100,959 206,417 63,921 39,591
Shares Outstanding:
December 31, 1996 (beginning of period) 1,012,453 975,440 1,044,581 180,763
June 30, 1997 (end of period) 1,113,412 1,181,857 1,108,502 220,354
</TABLE>
7) SECURITY TRANSACTIONS:
For Federal income tax purposes, the cost of investments owned on June 30, 1997
was the same as identified cost. As of June 30, 1997 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 $7,230,178 ($160,980) $7,069,198
Opportunity $7,775,074 ($558,394) $7,216,680
Fixed Income $149,292 ($170,160) ($20,868)
Municipal Income $54,776 ($2,829) $51,947
</TABLE>
8) FINANCIAL INSTRUMENTS DISCLOSURE:
There are no reportable financial instruments that have any off balance sheet
risk as of June 30, 1997.
28
<PAGE> 31
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
TRANSFER AGENT AND FUND ACCOUNTANT
Johnson Financial, Inc.
5556 Cheviot Road
Cincinnati, Ohio 45247
513-385-4001
800-541-0170
CUSTODIAN
The Provident Bank
Three East Fourth Street
Cincinnati, Ohio 45202
AUDITORS
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, Ohio 44145
29
<PAGE> 32
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.
