JOHNSON MUTUAL FUNDS TRUST
N-30D/A, 2000-02-28
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TABLE OF CONTENTS

Our Message To You
Performance Review
Portfolio of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
FINANCIAL HIGHLIGHTS
NOTES TO THE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT

ANNUAL REPORT                                                                                        DECEMBER 31, 1999

JOHNSON

Mutual Funds

•   Johnson Growth Fund
 
•   Johnson Opportunity Fund
 
•   Johnson Realty Fund
 
•   Johnson Fixed Income Fund
 
•   Johnson Municipal Income Fund

INVESTMENT ADVISER:

Johnson Investment Counsel, Inc.
3777 West Fork Road
Cincinnati, Ohio 45247
513-661-3100
800-541-0170


Table of Contents

JOHNSON MUTUAL FUNDS                                                                       December 31, 1999

Table of Contents

         
Our Message to You 1
 
Performance Review and Management Discussion
Growth Fund 2
Opportunity Fund 3
Realty Fund 4
Fixed Income Fund 5
Municipal Income Fund 6
 
Portfolio of Investments
Growth Fund 7-8
Opportunity Fund 9-10
Realty Fund 11
Fixed Income Fund 12-14
Municipal Income Fund 15-16
 
Statement of Assets and Liabilities 17
 
Statement of Operations 18
 
Statement of Change in Net Assets
Stock Funds 19
Bond Funds 20
 
Financial Highlights
Growth Fund 21
Opportunity Fund 22
Realty Fund 23
Fixed Income Fund 24
Municipal Income Fund 25
 
Notes to the Financial Statements 26-28
 
Report of the Independent Auditors 29
Trustees, Officers, Transfer Agent, Fund Accountant Custodian, Auditors, Legal Counsel Back Page

Table of Contents

OUR MESSAGE TO YOU

February 23, 2000

      Dear Shareholder:

      The stock market rebounded in the fourth quarter of 1999, contributing significantly to the volatility and the wide disparity in returns for individual stocks for the year. While the Standard & Poor’s 500 Index experienced another strong year with returns of 21%, only seven stocks accounted for one-half of the entire year’s return. The market continued its narrow participation, with the average stock declining for the year. As we now move into late February 2000, the average stock in the S&P 500 Index has declined over 25% from its previous 52-week high. The underlying market has been very weak, overshadowed by the huge gains in the technology sector. Nevertheless, the economy continues it’s very healthy growth and stocks should continue to add positive returns over the long run.

      Rising interest rates continued to plague the bond market with rates at their highest point and prices at their lowest point for the year ending December 31, 1999. It was the third worst year for the bond market since 1926. Nevertheless, our Municipal Income Fund was the number one fund among all 51 Ohio bond funds, according to Lipper, Inc.

      The first five pages of this report include a review of each of the Funds’ performance for 1999. The remainder of the annual report lists stocks and bonds that are held in each of the Funds, as well as other fundamental data and notes. We continue to structure all portfolios to provide solid long term returns commensurate with appropriate risk.

      We hope that as you review this annual report, you feel free to call with any questions you may have. It is a pleasure serving your investment needs.

   
 
  Sincerely,
  /s/ Timothy E. Johnson
  Timothy E. Johnson, President
Johnson Mutual Funds

1

Table of Contents

GROWTH FUND                                                            Performance Review - December 31, 1999

[GRAPH]

                 
Growth S&P 500
Fund Index
1992 $ 10,000.00 $ 10,000.00
1993 $ 10,596.78 $ 11,009.82
1994 $ 10,149.85 $ 11,154.61
1995 $ 13,368.55 $ 16,341.63
1996 $ 15,609.73 $ 16,661.69
1997 $ 20,911.03 $ 25,152,93
1998 $ 26,995.43 $ 32,341.35
1999 $ 20,047.68 $ 38,691.00

For periods ending December 31, 1999:

                                         
Average Annual Total Returns (a)
1 Year 3 Years 5 Years 7 Years (b)
Growth Fund 11.31 % 24.40 % 24.23 % 17.04 %
S&P 500 Index 21.04 % 27.56 % 28.55 % 21.44 %

(a)   The data represented on this page 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. 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 & Poor’s 500 Index.
(b)   Inception of the Growth Fund was January 4, 1993.

                 
% As of % As of
Top Ten Holdings: 12/31/99 12/31/98
Cicso Systems 4.1 % 3.3 %
EMC Corporation 3.9 % 3.5 %
General Electric 3.8 % 3.2 %
Microsoft Corporation 3.8 % 3.4 %
Sun Microsystems, Inc. 3.4 % 2.4 %*
Exxon Mobil Corporation 3.0 % 2.8 %
Lexmark Int’l Group 2.8 % 2.4 %*
MCI WorldCom, Inc. 2.8 % 0.0 %*
Intel Corporation 2.7 % 2.4 %*
Wal-Mart Stores, Inc. 2.7 % 0.0 %*

*   Not in Top 10 as of 12/31/98.

How did the Growth Fund perform relative to the market?

      The rate of return on the Growth Fund was 11.31% in 1999, compared to a return of 21.04% for the Standard and Poors 500 Index (S & P 500). The underperformance of the Fund relative to the S&P 500’s return occurred during the first half of 1999 when value stocks outperformed growth stocks. For the most recent six month period, the Growth Fund returned 8.51% compared to 7.71% on the S&P 500 Index.

      The Growth Fund continues to be invested in a diversified manner and with a sensitivity to valuation parameters. As an example, the largest sector weighting in the Growth Fund is in technology at 31%. That compares with a technology weighting of 30% for the S&P 500 Index. However, the dollar weighted price-earnings ratio for the Growth Fund’s technology stocks is 66 compared to 102 for the technology stocks in the S&P 500 Index. Should investors lose some of their enthusiasm for technology stocks, the advisor believes that the disparity should provide relative downside protection to the Growth Fund.

      If the year 2000 is a repeat of 1999, with most of the positive performance concentrated in technology and internet related stocks with historically high valuations, then a conservative, diversified portfolio such as the Growth Fund will likely lag index returns. However, any broadening in market performance away from technology stocks could benefit portfolios such as the Growth Fund. The advisor believes that the more conservative valuations in the Growth Fund should also be beneficial to relative performance in the event of a significant market correction.

     

Growth Fund Objective:                                                  Long-Term Capital Growth
Primary Asset Category:                                                 Stocks of Larger-Sized Growth Companies

2

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OPPORTUNITY FUND                                                              Performance Review - December 31, 1999

[GRAPH]

                 
Opportunity Fund S & P MidCap Index
1993 $ 10,000.00 $ 10,000.00
1994 $ 10,499.06 $ 10,413.99
1995 $ 13,152.19 $ 13,636.63
1996 $ 16,190.33 $ 16,258.84
1997 $ 20,603.88 $ 21,499.92
1998 $ 24,503.93 $ 25,465.00
1999 $ 27,604.79 $ 29,233.00

For periods ending December 31, 1999:

                                 
Average Annual Total Return (a)
1 Year 3 Years 5 Years 5.6 Years (b)
Opportunity Fund 12.65 % 19.47 % 21.33 % 19.76 %
S&P MidCap Index 14.70 % 21.79 % 23.04 % 20.99 %

(a)   The data represented on this page 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. 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 & Poor’s MidCap Index.
(b)   Inception of the Opportunity Fund was May 16, 1994.

                 
% As of % As of
Top Ten Holdings: 12/31/99 12/31/98
EMC Corporation 5.7 % 2.9 %
BMC Software 4.6 % 1.8 %*
Vitesse Semiconductor 3.5 % 2.5 %*
Gap, Inc. 3.4 % 2.5 %*
Tandy Corporation 3.4 % 1.1 %*
Century Telephone 3.3 % 2.7 %*
Teradyne Inc. 3.3 % 0.0 %*
Lexmark Int’l Group 2.8 % 2.7 %
Altera Corporation 2.6 % 1.9 %*
Forest Laboratories 3.0 % 2.7 %*

•   Not in Top 10 as of 12/31/98.

How did the Opportunity Fund perform relative to the market?

The Opportunity Fund had a return in 1999 of 12.65% compared to a return of 14.70% on the Standard & Poors Midcap Index (Midcap Index). As in the large-cap arena, growth stocks performed better than value stocks for the year in the midcap sector. More specifically, the technology and communication services sectors dominated the Midcap Index returns. The modest underperformance of the Opportunity Fund relative to the Index in 1999 was more related to stock specific issues than to sector allocation.

At year-end, technology stocks represented the largest industry weighting in the fund at about 31% as compared to the Midcap Index’s technology weight of about 27%. The overweight in the Fund was additive to it’s performance for the year. Relative to the Midcap Index, the most significant industry overweight for the Opportunity Fund was in consumer cyclical stocks. The Fund had 20% of the portfolio invested in the sector versus 15% for the Index. Tandy and The Gap were the largest of the holdings, each at 3.4% of the portfolio at year-end. Both stocks were good performers during the year.

As in the large-cap sector of the market, a broadening in performance away from technology stocks would be beneficial to the overall health of the market and probably to the relative performance of the Opportunity Fund.

         
Opportunity Fund Objective: Long-Term Capital Appreciation
Primary Asset Category: Stocks of Medium/Small-Sized Growth Companies

3

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REALTY FUND                                                              Performance Review - December 31, 1999

[GRAPH]

                 
Realty Fund NAREIT Index
1997 $ 10,000.00 $ 10,000.00
1998 $ 6,143.90 $ 6,250.00
1999 $ 7,942.45 $ 7,869.00

For periods ending December 31, 1999:

           
Average Annual Total Returns (a)
1 Year 2 Years (b)
Realty Fund -2.47% -10.91%
NAREIT Index -4.62% -11.32%

(a)   The data represented on this page 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. The 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 NAREIT Index.
(b)   Inception of the Realty Fund was January 2, 1998.
(c)   Performance for the Realty Fund and the NAREIT Index are so similar that it is difficult to discern the two distinct lines.

                 
% As of % As of
Top Ten Holdings: 12/31/99 12/31/98
Apartment Investment Mgt 4.6 % 3.9 %*
Avalon Bay Comm. Inc. 4.4 % 4.3 %
Vornado Realty Trust 4.2 % 0.0 %*
First Industrial Realty 4.1 % 4.6 %
Duke-Weeks Realty 4.0 % 0.0 %*
Equity Office Property Trust 3.9 % 0.0 %*
Kimco Realty 3.9 % 0.0 %*
Essex Property Trust Inc. 3.8 % 3.9 %
Simon Property Group, Inc. 3.8 % 4.4 %
Boston Properties, Inc. 3.8 % 4.3 %

*   Not in the Top 10 as of 12/31/98.

How did the Realty Fund perform relative to the market?

The Johnson Realty Fund had a rate of return of -2.47% in 1999 which compares to a return of -4.62% for the National Association of Real Estate Investment Trust Index (NAREIT Index). The real estate investment trust (REIT) stocks fell victim to rising interest rates and lackluster interest from the investment community. REITs are very capital intensive companies, thus higher interest rates dampen their ability to effectively borrow. Additionally, weak stock performance for REITSs over the past two years has all but eliminated the equity market as a financing source. REITs with the strongest balance sheets and best properties perform best in this type of market.

The equity market in 1999 was very concentrated on growth, while technology stocks led the broad indices to all time highs. Also in 1999, the disparity between the haves and have nots became even greater and the have nots were clearly the more value-oriented stocks. REITs, with their relative valuations and high dividends, clearly were placed in this category. The lack of interest by the investment community, combined with the higher cost of financing for REIT projects drove REIT stocks to all time valuation lows. At the beginning of 1999 the average dividend yield of the NAREIT Index was 7.5%, increasing to 8.7% by the end of the year. In December, in recognition of REITs’ relative valuation, Warren Buffet once again affirmed his belief in REITs’ long term prospects by giving a “stock tip” to investors to buy them. December 1999 was the second best month for REIT performance, up 3.2%, following the other Buffet-induced rally in April 1999 of 9.5%.

The Realty Fund utilizes a conservative quality approach when selecting individual securities. The combination of macroeconomic factors and in-depth bottom up analysis is utilized in construction of the portfolio. The strategy employed to select securities starts with targeting stocks with above average growth prospects within their peer groups. The growth must be predicated on solid financials and a strong management team. In 1999 the best performing property type was residential, registering a 9.48% total rate of return and comprising nearly 21% of the overall market weighting. The worst performing group was specialty real estate, which posted a 26% decline.

         
Realty Fund Objective: Long-Term Capital Growth and Above Average Income
Primary Asset Category: Real Estate Related Equity Securities

4

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FIXED INCOME FUND Performance Review - December 31, 1999

[GRAPH]

                 
Fixed Lehman Intermediate
Income Government Corporate
Fund Index
1992 $ 10,000.00 $ 10,000.00
1993 $ 10,954.49 $ 10,832.80
1994 $ 10,391.95 $ 10,623.67
1995 $ 12,231.14 $ 12,253.00
1996 $ 12,611.58 $ 12,749.00
1997 $ 13,675.89 $ 13,752.00
1998 $ 14,913.16 $ 14,912.00
1999 $ 14,363.71 $ 14,969.00

For periods ending December 31, 1999:

                                 
Average Annual Total Returns (a)
1 Year 3 Years 5 Years 7 Years (b)
Fixed Income Fund -3.68 % 4.43 % 6.69 % 5.32 %
Lehman Int. G/C Index 0.39 % 5.49 % 7.09 % 5.94 %

(a)   The data represented on this page 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. 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 Brothers Intermediate Government Corporate Bond Index.
(b)   Inception of the Fixed Income Fund was January 4, 1993.

[GRAPH]

                   
QUALITY ALLOCATION
AAA 43.2 %
AA 6.5 %
A 41.6 %
BBB 8.7 %

How did the Fixed Income Fund perform relative to the market?

The Fixed Income Fund had a rate of return of -3.68% for 1999 compared to a return of 0.39% for the Lehman Brothers Intermediate Government/Corporate Bond Index. In the beginning of the year, investors were worried about worldwide economic turmoil and expected the Federal Reserve to lower interest rates to bolster faltering global economies. Instead, global economies recovered sharply from 1998’s depressed levels and the Fed shifted to a tightening mode. The Fed decided to raise short-term interest rates by 0.75% during the year as it focused on recovering global economies, a robust U.S. economy, and tight domestic labor markets. Bond market sentiment turned decidedly negative with the backdrop of Fed tightening and inflation worries returned to the forefront of investor concerns. These shifts in the economic environment and market sentiment also helped to drive interest rates sharply higher during the year. Interest rates rose by more than 1 1/2% for intermediate maturity Treasury bonds, causing sub-par total returns for most sectors of the bond market.

This environment proved challenging for the Fixed Income Fund relative to the Lehman Brothers Intermediate Government/Corporate Bond Index. The relative performance of the Fund was negatively impacted by several factors. First, the longer duration of the Fund relative to the Index was not helpful in the rising interest rate environment. Next, the intermediate maturity focus of the Fund was unfavorable as yields on intermediate maturity bonds rose more than yields on either short or long maturity bonds, driving their prices down. Finally, low quality sharply outperformed high quality, so the Fund’s high quality emphasis was a third factor hindering performance for the year. These appear to be temporary factors driven by short-term phenomenon and they should reverse themselves over a longer-term time horizon.

The Fixed Income Fund continues its focus on high-quality securities. Each security within the Fund is rated investment-grade quality by both Moody’s and Standard and Poors, with over 90% of the assets rated “A” or better as indicated in the Quality Allocation Chart on this page. 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 as economic circumstances change in the future.

         
Fixed Income Fund Objective: Income and Capital Preservation
Primary Asset Category: Investment-Grade Government/Corporate Bonds

5

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MUNICIPAL INCOME FUND Performance Review - December 31, 1999

[GRAPH]

                 
Lehman Five-Year
Municipal Income Fund G.O. Municipal Index
1993 $ 10,000.00 $ 10,000.00
1994 $ 10,061.20 $ 10,117.49
1995 $ 11,177.62 $ 11,295.13
1996 $ 11,560.82 $ 11,819.00
1997 $ 12,281.38 $ 12,586.00
1998 $ 12,919.37 $ 13,322.00
1999 $ 12,759.74 $ 13,415.00
                                 
For periods ending December 31, 1999: Average Annual Total Returns (a)
1 Year 3 Years 5 Years 5.6 Years (b)
Municipal Income Fund -1.24 % 3.34 % 4.83 % 4.42 %
Lehman 5 Yr. G.O. Index 0.71 % 4.31 % 5.81 % 5.35 %

(a)   The data represented on this page 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. 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.
(b)   Inception of the Municipal Income Fund was May 16, 1994.

[GRAPH]

                 
Quality Allocation
         
AAA 55.1 %
AA 18.8 %
A 17.4 %
NR 8.7 %

How did the Municipal Income Fund perform relative to the market?

      The Municipal Income Fund had a rate of return of - 1.24 % for 1999 compared to a return of 0.71% for the Lehman Five-Year General Obligation Index. The Fund’s longer duration than that of the Index hampered its relative performance. However, due to its intermediate maturity focus, the Fund was able to outperform the overall municipal market and many municipal bond mutual funds, which are more heavily weighted toward longer maturity bonds.

      Municipal bond yields now stand at levels that are very attractive relative to Treasury bonds. Investors in all but the very lowest tax brackets pick-up substantial after-tax yield in municipal bonds versus taxable bonds. With supply of municipal bonds at such low levels, due to a substantial drop-off in refunding activity, any incremental pick-up in demand should lead to relative outperformance as compared to Treasuries.

      As has been the case since its inception, the credit quality of the Municipal Income Fund remains very high. Over 50% of the securities in the Fund are rated “AAA”, the highest rating category, with over 90% of assets rated in the highest three rating categories AAA, AA, and A. Over 98% of the income generated by the Fund is from Ohio municipal bonds, so most of the income earned is exempt from Ohio State Income Tax in addition to being exempt from Federal Income Taxes.

         
Municipal Income Fund Objective: Tax-Free Income and Capital Preservation
Primary Asset Category: Intermediate-Term Ohio Municipal Bonds

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GROWTH FUND Portfolio of Investments as of December 31, 1999

                     
Common Stocks Shares Dollar Value
Aerospace
General Dynamics Corporation 20,000 1,055,000
Total Aerospace - 1.7% $ 1,055,000
 
Beverage
Coca-Cola Enterprises 37,300 750,663
Total Beverage - 1.2% $ 750,663
 
Computer Hardware
Sun Microsystems Inc.* 27,080 2,097,007
Total Computer Hardware - 3.4% $ 2,097,007
 
Computer Networking
Cisco Systems, Inc.* 23,800 2,549,575
Total Computer Networking - 4.1% $ 2,549,575
 
Computer Peripheral
EMC Corporation* 22,200 2,425,350
Lexmark International Group* 17,000 1,538,500
Total Computer Peripheral - 6.4% $ 3,963,850
 
Computer Software
Computer Associates Int., Inc. 21,400 1,496,663
Microsoft Corporation* 20,400 2,381,700
Total Computer Software - 6.3% $ 3,878,363
 
Computer Software - Services
America Online Inc.* 9,000 678,938
Compuware Corporation* 44,000 1,639,000
Total Computer
Software - Services - 3.7% $ 2,317,938
 
Electrical Equipment
General Electric Company 15,230 2,356,843
Total Electrical Equipment - 3.8% $ 2,356,843
 
Electronics - Semi - Conductors
Intel Corporation 20,000 1,646,250
Texas Instruments 6,000 581,250
Total Electronics -
Semi - Conductors - 3.6% $ 2,227,500
 
Financial - Miscellaneous
American Express Company 9,200 1,529,500
Fannie Mae 25,500 1,592,156
Total Financial -
Miscellaneous - 5.0% $ 3,121,656
 
Financial - Regional Banks
Bank of NY Co., Inc. 33,000 1,320,000
Comerica Inc. 21,250 992,109
Fifth Third Bancorp 18,000 1,320,750
Firstar Corporation 54,000 1,140,750
Total Financial - Reg. Banks - 7.7% $ 4,773,609
 
Food Retailers
Sysco Corporation 31,190 1,233,954
Total Food Retailers - 2.0% $ 1,233,954
 
Health Care - Diverse
Bristol-Myers Squibb Co. 18,000 1,155,375
Total Health Care-Diverse - 1.9% $ 1,155,375
 
Health Care Products
Johnson and Johnson 12,200 1,136,125
Medtronic Corporation 30,870 1,124,826
Total Health Care Products - 3.6% $ 2,260,951
 
Health Care - Drugs
Merck and Company 15,600 1,046,175
Pfizer, Inc. 30,300 982,856
Schering-Plough Corporation 24,000 1,012,500
Smithkline Beecham PLC ADR 17,200 1,108,325
Total Health Care - Drugs - 6.7% $ 4,149,856

* Non-income producing security.

The accompanying notes are an integral part of the financial statements.

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GROWTH FUND Portfolio of Investments as of December 31, 1999

                         
Common Stocks Shares Dollar Value
Household Products
Procter & Gamble Company 11,900 1,303,794
Total Household Products - 2.1% $ 1,303,794
 
Industrial Services
Cintas Corporation 23,000 1,221,875
Total Industrial Services - 2.0% $ 1,221,875
 
Manufacturing
Dover Corporation 32,840 1,490,115
Total Manufacturing - 2.4% $ 1,490,115
 
Oil - Domestic
Marathon Group Inc. (USX) 35,325 872,086
Total Oil - Domestic- 1.4% $ 872,086
 
Oil - International
Exxon Mobil Corporation 22,891 1,844,156
Royal Dutch Petrolem 19,000 1,148,312
Total Oil - International - 4.8% $ 2,992,468
 
Oil & Gas - Drilling & Equipment
Halliburton Company 32,000 1,288,000
Total Oil & Gas -
Drilling & Equipment - 2.1% $ 1,288,000
 
Retailing
Circuit City Stores 28,000 1,261,750
Dayton Hudson Corp. 16,000 1,175,000
Kroger Company* 63,000 1,189,125
Lowe’s Company, Inc. 23,600 1,410,100
Staples Inc.* 51,207 1,062,545
Walgreen Company 52,500 1,535,625
Wal-Mart Stores, Inc. 24,000 1,659,000
Total Retailing - 15.0% $ 9,293,145
 
Telecommunication Equipment
Lucent Technology, Inc. 19,300 1,443,881
Total Telecom. Equipment - 2.3% $ 1,443,881
 
Telecommunication - Long Distance
AT & T Corporation 21,000 1,065,750
MCI Worldcom, Inc.* 32,700 1,735,144
Total Telecommunication -
Long Distance - 4.5% $ 2,800,894
 
Total Common Stocks - 97.7% $ 60,598,398
(Common Stock Identified
Cost $38,387,478)
 
Cash Equivalents
Federated U.S. Treasury Cash Reserves
Money Market Fund 1,402,831
Total Cash Equivalents - 2.3% $ 1,402,831
  (Cash Equivalents Identified
    Cost $1,402,831)
 
Total Portfolio Value - 100.0% $ 62,001,229
(Total Portfolio Identified
Cost $39,790,309)
Other Assets Less Liabilities $ 17,688
Total Net Assets $ 62,018,917

*Non-income producing security.

The accompanying notes are an integral part of the financial statements.

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OPPORTUNITY FUND Portfolio of Investments as of December 31, 1999

                       
Common Stocks Shares Dollar Value
Aerospace - Defense
Newport News Shipbuilding 24,000 660,000
Total Aerospace - Defense - 1.1% $ 660,000
 
Capital Goods
Ball Corporation 7,000 275,625
Danaher Corporation 10,000 482,500
Total Capital Goods - 1.2% $ 758,125
 
Chemicals
Ecolab Inc. 46,600 1,823,225
Total Chemicals - 2.9% $ 1,823,225
 
Computer Software
BMC Software, Inc.* 36,500 2,917,719
Go.Com* 9,200 219,075
Network Associates* 25,000 667,188
Siebel Systems, Inc.* 7,000 588,000
Sterling Commerce, Inc.* 27,555 938,592
Sungard Data Systems, Inc.* 28,000 665,000
Total Computer Software - 9.6% $ 5,995,574
 
Computer Peripheral
EMC Corporation* 33,000 3,605,250
Lexmark Int’l Group Inc.* 22,000 1,991,000
Total Computer Peripheral - 8.9% $ 5,596,250
 
Electronic Equipment
Molex Incorporated 25,000 1,417,188
Total Electronic Equipment - 2.3% $ 1,417,188
 
Electronics - Semiconductors
Altera Corporation* 39,000 1,932,937
Teradyne, Inc.* 31,000 2,046,000
Vitesse Semiconductor Corp.* 42,000 2,202,375
Total Electronics - Semiconductors - 9.8% $ 6,181,312
 
Energy Services
Devon Energy Corporation 35,000 1,150,625
Smith International, Inc.* 33,000 1,639,688
Total Energy Services - 4.4% $ 2,790,313
 
Financial - Brokerage
T. Rowe Price Associates, Inc. 23,000 849,562
Total Financial - Brokerage - 1.4% $ 849,562
 
Financial - Insurance
AON Corporation 14,550 582,000
Reliastar Financial Corporation 35,200 1,379,400
Total Financial - Insurance - 3.1% $ 1,961,400
 
Financial - Regional Banks
First Tennessee National Corp. 47,000 1,339,500
National Commerce Bancorp 30,000 680,625
North Fork Bancorp 41,000 717,500
Total Financial - Regional Banks - 4.4% $ 2,737,625
 
Foods
Tootsie Roll Industries 17,858 588,198
Total Foods - .9% $ 588,198
 
Health Care - Drugs
Elan Corporation PLC, ADR* 23,500 693,250
Forest Labs Inc. Class A* 30,200 1,855,412
Mylan Laboratories 31,700 798,444
Watson Pharmaceutical* 23,000 823,687
Total Health Care - Drugs - 6.6% $ 4,170,793
 
Health Care - Products
Biomet Inc. 20,000 800,000
Sybron International Corp. 50,500 1,246,719
Total Health Care - Products - 3.3% $ 2,046,719

* Non-income producing security.

The accompanying notes are an integral part of the financial statements

9

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OPPORTUNITY FUND Portfolio of Investments as of December 31, 1999

                     
Common Stocks Shares Dollar Value
Household Furniture
Ethan Allen Interiors, Inc. 26,000 833,625
Total Household
Furniture - 1.3% $ 833,625
 
Industrial Services
Cintas Corporation 12,200 648,125
G & K Services, Inc., Class A 41,700 1,350,038
Total Industrial Services - $ 1,998,163
3.2%
 
Lodging - Hotel
Royal Caribbean Cruise 15,000 739,688
Total Lodging - Hotel - 1.2% $ 739,688
 
Manufacture - Diverse
Johnson Controls, Inc. 13,000 739,375
Total Manufacture-Diverse - $ 739,375
1.2%
 
Natural Gas
National Fuel Gas Company 12,000 558,000
Peoples Energy Corporation 16,000 536,000
Total Natural Gas - 1.7% $ 1,094,000
 
Oil and Gas
Weatherford International 23,000 918,562
Total Oil and Gas - 1.5% $ 918,562
 
Retailing
Abercrombie and Fitch* 20,000 533,750
BJ’s Wholesale Club Inc.* 43,000 1,569,500
Circuit City Stores 16,000 721,000
Dollar General Corporation 45,750 1,040,812
Gap, Inc. 46,500 2,139,000
Linens ‘n Things, Inc.* 19,000 562,875
Tandy Corporation 43,000 2,115,063
Total Retailing - 13.8% $ 8,682,000
 
Telecommunication Services
ADC Telecommunications, Inc.* 20,000 1,451,250
Century Tele Enterprises, Inc. 43,750 2,072,656
Broadwing, Inc. 50,000 1,843,750
Metromedia Fiber Network* 22,000 1,054,625
Qwest Communications Int’l* 40,650 1,747,950
Total Telecomm Services - 13.0% $ 8,170,231
 
Total Common Stocks - 96.8% $ 60,751,928
(Common Stock Identified Cost $40,492,749)
 
Cash Equivalents
Federated U.S. Treasury Cash Reserves Money Market Fund 2,018,494
Total Cash Equivalents - 3.2% $ 2,018,494
(Cash Equivalents Identified
Cost $2,018,494)
 
Total Portfolio Value - 100.0% $ 62,770,422
(Total Portfolio Identified Cost $42,511,243)
Other Assets Less Liabilities $ 4,973
 
Total Net Assets $ 62,775,395

* Non-income producing security.

The accompanying notes are an integral part of the financial statements.

10

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REALTY FUND Portfolio of Investments as of December 31, 1999

                         
Common Stocks (REITS) Shares Dollar Value
Apartments
Apartment Investment and Management, Co. 6,805 270,927
Archstone Communities Trust 10,655 218,427
Avalon Bay Communities, Inc. 7,592 260,501
BRE Properties, Inc. 6,130 139,074
Camden Property Trust 5,815 159,185
Equity Residential Properties Trust 4,975 212,370
Essex Property Trust, Inc. 6,570 223,380
Post Properties, Inc. 5,055 193,354
Total Apartments - 28.8% $ 1,677,218
Diversified
Vorando Realty Trust 7,500 243,750
Total Diversified - 4.2% $ 243,750
Lodging and Hotels
Flecor Lodging Trust 6,100 106,750
Wyndham International 29,650 87,097
Starwood Hotels and Resorts 7,460 175,310
Total Lodging and Hotels - 6.3% $ 369,157
Office and Industrial
Boston Properties, Inc. 7,175 223,322
Cali Realty Corporation 6,795 177,095
Duke Realty Investments 11,860 231,270
Equity Office Properties 9,145 225,195
First Industrial Realty Trust, Inc. 8,680 238,157
Highwoods Properties, Inc. 8,150 189,487
Kilroy Realty Corporation 6,345 139,590
Liberty Property Trust 6,630 160,777
Prentiss Properties Trust 8,350 175,350
Prologis Trust 10,005 192,596
Spieker Properties, Inc. 5,305 193,301
Total Office and Industrial - 36.9% $ 2,146,140
Retail
General Growth Properties 7,635 213,780
JDN Realty Properties 6,360 102,555
Kimco Realty Corporation 6,735 228,148
Macerich Company 4,830 100,524
Regency Realty Corporation 6,940 138,800
Simon Properties Group, Inc. 9,745 223,526
Weingarten Realty Investors 2,955 115,060
Total Retail - 19.4% $ 1,122,393
Total Common Stocks - 95.6% $ 5,558,658
(Common Stock Identified Cost $6,764,092)
Cash Equivalents
Federated U.S. Treasury Cash Reserves
Money Market Fund 255,114
Total Cash Equivalents - 4.4% $ 255,114
(Cash Equivalents Identified
Cost $255,114)
Total Portfolio Value - 100.0% $ 5,813,772
(Total Portfolio Identified Cost $7,019,206)
Other Assets Less Liabilities $ 45,565
Total Net Assets $ 5,859,337

The accompanying notes are an integral part of the financial statements

11

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FIXED INCOME FUND Portfolio of Investments as of December 31, 1999

                             
Fixed Income Securities - Bonds Face Dollar Value
Bank Bonds - Major Regional
Banc One Corp., 9.875%, 3/1/09 250,000 287,500
Comerica Bank Sub. Note, 6.875%, 3/1/08 250,000 236,875
First Union Corp., 7.5%, 7/15/06 500,000 498,125
Mellon Financial Co., 6.70%, 3/1/08 500,000 475,000
NBD Bancorp, 7.125%, 5/15/07 400,000 387,000
PNC Funding Corp., 6.875%, 7/15/07 500,000 476,250
Provident Bank, 6.375%, 1/15/04 500,000 476,875
Star Bank N.A., 6.625%, 12/15/06 475,000 449,469
SunTrust Bank, 6.50%, 1/15/08 500,000 466,875
Total Major Regional Banks - 12.6% $ 3,753,969
Bank Bonds - Money Center
Bankers Trust NY Corp., 7.15%, 8/14/12 400,000 395,000
Total Money Center Banks - 1.3% $ 395,000
Capital Equipment
Dover Corp., 6.25%, 6/1/08 500,000 463,125
Honeywell, Inc., 7.125%, 4/15/08 400,000 389,500
IBM Corp., 6.45%, 8/1/07 300,000 286,500
Total Capital Equipment - 3.8% $ 1,139,125
Chemicals
Hercules, Inc., 6.625%, 6/1/03 250,000 241,562
Total Chemicals - 0.8% $ 241,562
Food and Beverage
Procter & Gamble Company Global Bond Issue, 6.60%, 12/15/04 250,000 246,250
Sara Lee Corporation, Medium Term Note, 5.70%, 7/14/00 250,000 249,063
Total Food and Beverage - 1.7% $ 495,313
Electric Utilities
Ameren Corp., 6.875%, 8/1/04 200,000 195,750
Carolina Power & Light Co., 6.75%, 10/1/02 250,000 247,188
Duke Energy Corp., 5.375%, 1/1/09 500,000 423,750
Louisville Gas & Electric Co., 7.50%, 7/1/02 25,000 25,156
Midwest Power Corp., 7.00%, 2/15/05 200,000 196,000
National Rural Utilities, 5.70%, 1/15/10 500,000 435,000
Virginia Electric Co., 6.375%, 3/1/04 500,000 507,500
Total Electric Utilities - 6.8% $ 2,030,344
Entertainment and Leisure
Mattel Inc., 6.125%, 7/15/05 500,000 456,875
Walt Disney Company, 5.80%, 10/27/08 400,000 358,500
Total Entertainment and Leisure - 2.7% $ 815,375
Financial - Services
American General Finance, 8.125%, 8/15/09 120,000 123,300
CIT Group Holdings, 8.375%, 11/1/01 250,000 255,625
Ford Motor Credit Company, 6.70%, 7/16/04 500,000 490,000
Household Finance Corp.
Senior Note, 6.875%, 3/1/03 700,000 691,250
Merry Land and Investment Co., 7.25%, 6/15/05 500,000 485,000
Total Financial - Services - 6.9% $ 2,045,175
Foreign Utilities (U.S. Dollar Denominated)
Hydro Quebec Medium Term Note, 6.98%, 3/01/05 200,000 196,500
Total Foreign Utilities (US $) - 0.7% $ 196,500

The accompanying notes are an integral part of the financial statements.

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FIXED INCOME FUND Portfolio of Investments as of December 31, 1999

                       
Fixed Income Securities - Bonds Face Dollar Value
Health Care
McKesson Corp., 6.40%, 3/1/08 400,000 343,500
Total Health Care - 1.2% $ 343,500
 
Natural Gas Utilities
Enron Corp., 6.75%, 8/01/09 600,000 558,750
Total Natural Gas Utilities - 1.9% $ 558,750
 
Petroleum
Amoco Corp. Canada, 7.25%, 12/1/02 200,000 201,750
Total Petroleum - .7% $ 201,750
 
Publishing
The Tribune Company, 6.875%, 11/1/06 500,000 480,000
Total Publishing - 1.6% $ 480,000
 
Railroads
CSX Transportation Equipment Trust, 6.07%, 3/15/01 200,000 198,000
Total Railroads - 0.7% $ 198,000
 
Retailing
Gap Inc., 6.90%, 9/15/07 500,000 484,375
Wal-Mart Stores, Inc., 6.375%, 3/1/03 200,000 196,500
Total Retailing - 2.3% $ 680,875
 
Services
Hertz Corp., 6.25%, 3/15/09 500,000 455,625
Service Corp. Int’l, 6.50%, 3/15/08 500,000 370,625
Total Services - 2.8% $ 826,250
 
Telecommunications
AT & T Corp., 6.00%, 3/15/09 500,000 454,375
AT & T Corp., 6.75%, 4/1/04 500,000 491,875
Lucent Technologies, 5.50%, 11/15/08 400,000 355,500
GTE Corp., 7.51%, 4/1/09 600,000 599,250
New York Telephone Co., 5.875%, 9/1/03 200,000 191,500
Southwestern Bell Corp., 6.375%, 4/1/01 200,000 199,000
Total Telecommunications - 7.7% $ 2,291,500
 
United States Government Agency Obligations (A)
FHLB, 6.10%, 12/13/10 750,000 693,567
FHLB, 7.03%, 5/6/11 250,000 247,472
FHLMC, 6.005%, 12/8/05 200,000 191,121
FHLMC, 5.95%, 1/19/06 400,000 380,529
FHLMC, 5.125%, 10/15/08 500,000 438,604
FNMA, 7.50%, 2/11/02 200,000 203,613
FNMA, 7.55%, 4/22/02 200,000 204,045
FNMA, 5.75%, 4/15/03 1,000,000 971,724
FNMA, 5.125%, 2/13/04 500,000 470,190
FNMA, 7.80%, 3/29/05 200,000 200,155
FNMA, 5.75%, 6/15/05 1,000,000 951,054
FNMA, 5.75%, 2/15/08 1,000,000 922,917
FNMA, 5.25%, 1/15/09 1,350,000 1,190,437
GNMA, 7.00%, 12/15/25 269,901 260,792
GNMA, 7.50%, 8/15/26 202,278 200,130
Total United States Government
Agency Obligations - 25.2% $ 7,526,350
 
United States Government Agency Obligations -
Mortgage Backed Securities (A)
FHLMC, CMO Series 1639-PD, 5.60%, 8/15/06 106,025 105,541
FHLMC, CMO Series 1660-G, 6.25%, 7/15/07 250,000 246,969
FHLMC, 15 Year Gold, 7.00%, 3/01/11 197,390 195,231
FNMA Dus Pool Series 73894, 6.525%, 12/1/03 485,016 473,497
Total Government Agency Obligations -
Mortgage Backed Securities - 3.3% $ 1,021,238

(A) See abbreviations on next page.

The accompanying notes are an integral part of the financial statements.

13

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FIXED INCOME FUND Portfolio of Investments as of December 31, 1999

                       
Fixed Income Securities - Bonds Face Dollar Value
United States Government Obligations
U.S. Treasury, 7.875%, 8/15/01 400,000 409,869
U.S. Treasury, 7.50%, 11/15/01 200,000 204,316
U.S. Treasury, 7.875%, 11/15/04 500,000 528,550
U.S. Treasury, 6.50%, 8/15/05 500,000 499,871
U.S. Treasury, 6.875%, 5/15/06 500,000 508,499
U.S. Treasury, 7.00%, 7/15/06 500,000 512,004
U.S. Treasury, 6.25%, 2/15/07 500,000 492,050
U.S. Treasury, 6.625%, 5/15/07 500,000 501,796
U.S. Treasury, 5.50%, 2/15/08 400,000 374,553
Total United States Government
Obligations - 13.4% $ 4,031,508
Total Fixed Income — Bonds - 98.1% $ 29,272,084
(Fixed Income Identified Cost $30,720,206)
Cash Equivalents
Federated U.S. Treasury Cash Reserves
Money Market Fund		 564,783
Total Cash Equivalents - 1.9% $ 564,783
(Cash Equivalents Identified Cost $564,783)
Total Portfolio Value - 100.0% $ 29,836,867
(Total Portfolio Identified Cost $31,284,990)
Other Assets Less Liabilities $ 534,255
Total Net Assets $ 30,371,122

(A)

     
Abbreviations:
FHLB -
FHLMC -
FNMA -
GNMA -		 Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Government National Mortgage Association

The accompanying notes are an integral part of the financial statements.

14

Table of Contents

     
MUNICIPAL INCOME FUND Portfolio of Investments as of December 31, 1999

                       
Municipal Income Securities - Bonds Face Dollar Value
General Obligation - City
Akron, OH, 5.00%, 12/1/05 100,000 100,276
Cleveland, OH, (AMBAC Insured), 4.9%, 9/1/02 50,000 50,430
Columbus, OH, Tax Increment Financing, (AMBAC Insured), 4.9%, 12/1/11 150,000 142,271
Columbus, OH, 12.375%, 2/15/07 25,000 35,830
Columbus, OH, Series 2, 5.00%, 6/15/10 100,000 97,960
Loveland, OH, (AMBAC Insured), 4.9%, 12/1/08 100,000 97,823
Vandalia, OH, 4.80%, 12/1/03 75,000 75,103
Warder Library, OH, 6.25%, 12/1/03 135,000 141,839
Westlake, OH, 4.90%, 12/1/04 50,000 50,325
Youngstown, OH, (AMBAC Insured), 5.10%, 12/1/11 100,000 97,517
Total General Obligation - City - 17.4% $ 889,374
General Obligation - County
Belmont County, OH (MBIA Insured), 4.50%, 12/1/11 155,000 143,694
Belmont County, OH (MBIA Insured), 5.10%, 12/1/05 50,000 50,545
Delaware County, OH, 5.25%, 12/1/06 50,000 50,687
Hocking County, OH, 4.90%, 12/1/06 50,000 48,398
Knox County, OH, 4.75%, 12/1/09 60,000 57,404
Montgomery County, OH, 5.30%, 12/1/00 75,000 75,822
Portage County, OH, (MBIA Insured), 5.15%, 12/1/07 75,000 75,435
Trumbull County, OH, (AMBAC Insured), 5.25%, 12/1/05 50,000 50,926
Washington Township, OH, 4.65%, 12/1/05 75,000 72,385
Total General Obligation - County - 12.2% $ 625,296
Higher Education
Ohio State Higher Education Facilities, Denison University, 4.90%, 11/1/05 75,000 74,377
University of Cincinnati, OH General Receipts, 4.75%, 6/1/06 50,000 49,446
University of Toledo, OH (Prerefunded), 5.9%, 6/1/20 105,000 110,449
Total Higher Education - 4.6% $ 234,272
Hospital/Health
Hamilton County, OH, Hospital Children’s Hospital Medical Center, (MBIA Insured), 5.25%, 5/15/10 100,000 99,473
Episcopal Retirement Homes, Ohio Hospital Facility Revenue, 5.00%, 1/1/15 100,000 99,868
Franklin County, OH, The Children’s Hospital Project, 5.20%, 11/1/04 50,000 50,209
Hamilton County, OH, Hospital Facility Revenue, Children’s Hospital, (FGIC Insured), 5.00%, 5/15/06 50,000 50,123
Hamilton County, OH, Twin Towers Health Care Facility, 5.25%, 10/1/09 100,000 95,602
Lorain County, OH, Hospital Facility Revenue, Catholic Healthcare Partners, (MBIA Insured), 6.00%, 9/1/07 50,000 52,984
Lorain County, OH, Revenue Bond, Catholic Healthcare Partners Project (AMBAC Insured), 5.20%, 09/1/10 100,000 99,061
Warren, OH, Hospital Revenue (Prerefunded), 7.3%, 11/15/14 150,000 166,008
Total Hospital/Health - 14.0% $ 713,328
Revenue Bonds - Transportation
Butler County, OH, Transportation Improvement, (FSA Insured), 5.50%, 4/1/09 100,000 102,414
Ohio State Turnpike Revenue, (Prerefunded), 5.75%, 2/15/24 125,000 131,481
Total Revenue Bond - Transportation - 4.6% $ 233,895

The accompanying notes are an integral part of the financial statements

15

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MUNICIPAL INCOME FUND Portfolio of Investments as of December 31, 1999

                                       
Municipal Income Securities - Bonds Face Dollar Value
Revenue Bonds - Electric
Weatherford, TX Utility System Revenue, (MBIA Insured), 5.10%, 9/1/03 50,000 50,611
Total Revenue Bonds - Electric - 1.0% $ 50,611
Revenue Bonds - Water and Sewer
Akron, OH, Sewer System, (MBIA Insured), 5.50% 12/1/07 50,000 51,617
Butler, OH, Waterworks System, (FSA Insured), 4.40% 12/1/10 100,000 91,323
Cleveland, OH, Waterworks First Mortgage, Series G
(MBIA Insured), 5.25%, 1/1/04 50,000 50,862
Cleveland, OH, Waterworks Revenue, Series I (FSA Insured), 5.25%, 1/1/10 100,000 99,874
Columbus, OH, Water and Sewer, 5.00%, 11/01/06 100,000 99,925
Lorain, OH, Water System, (AMBAC Insured), 4.75%, 4/1/04 50,000 50,087
Miamisburg, OH, Sewer System, (AMBAC Insured), 4.35%, 11/15/02 50,000 49,706
Montgomery County, OH, Solid Waste, (MBIA Insured), 5.125%, 11/1/08 50,000 49,916
Southwest OH, Reg’l Water District Water- works, (MBIA Insured), 5.25%, 12/1/05 50,000 51,054
Warren County, Ohio Water and Sewer Line Extension, Special Assessment Bonds, 5.50%, 12/1/03 50,000 51,356
Total Revenue Bond - Water & Sewer - 12.6% $ 645,720
School District
Centerburg, OH, 5.25%, 10/15/01 40,000 40,260
Forest Hills, OH, 4.90%, 12/1/04 100,000 99,957
Gallia County, OH, 5.00%, 3/1/03 25,000 24,883
Gallia County, OH, 5.00%, 3/1/04 25,000 24,755
Indian Valley, OH, (AMBAC Insured), 5.50%, 12/1/06 50,000 51,498
Northwestern, OH, 4.65%, 12/1/06 105,000 100,142
Loveland, OH, School General Obligation, 4.40%, 12/1/08 100,000 93,818
Southwestern City, OH, 6.25%, 12/1/05 50,000 52,659
Sycamore, OH, Community School District (AMBAC Insured), 4.6%, 12/1/11 100,000 91,837
West Geauga, OH, (AMBAC Insured), 5.45%, 11/1/04 50,000 51,557
Westlake, OH, 4.85%, 12/1/03 100,000 100,313
Total School District - 14.3% $ 731,679
State Agency - Building Authority
Ohio State Building Authority, Administration Building Fund, 6.40%, 10/1/01 50,000 51,593
Ohio State Building Authority, Adult Correctional-Series A, 5.50%, 10/01/10 100,000 101,488
Ohio State Building Authority, Juvenile Correction Facilities, 4.375%, 10/1/12 100,000 88,148
Ohio State Building Authority, Ohio Center For The Arts, 5.45%, 10/1/07 100,000 102,274
Total State Agency - Building Authority - 6.7% $ 343,503
State Agency - Education
Ohio State Elementary and Secondary Education, (FSA Insured), 5.0%, 12/1/07 100,000 100,000
Ohio State Higher Education Facilities, 5.90%, 12/1/05 50,000 51,725
Ohio State Public Facilities Commission, (MBIA Insured), 4.70%, 06/1/11 100,000 93,319
Total State Agency - Education - 4.9% $ 245,044
Total Fixed Income - Municipal Bonds - 92.3% $ 4,712,722
(Municipal Bonds Identified Cost $4,808,036)
Cash Equivalents
Federated Ohio Municipal Cash Trust 395,424
Total Cash Equivalents - 7.7% $ 395,424
(Cash Identified Cost $395,424)
Total Portfolio Value - 100.0% $ 5,108,146
(Total Portfolio Identified Cost $5,203,460)
Other Assets Less Liabilities $ 39,378
Total Net Assets $ 5,147,524

The accompanying notes are an integral part of the financial statements

16

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JOHNSON MUTUAL FUNDS December 31, 1999

Statement of Assets and Liabilities

                                               
Stock Funds Bond Funds
Fixed Municipal
Growth Opportunity Realty Income Income
Fund Fund Fund Fund Fund
Assets:
Investment Securities
at Market Value* $ 62,001,229 $ 62,770,422 $ 5,813,772 $ 29,836,867 $ 5,108,146
Dividends and Interest
Receivable $ 61,572 $ 53,089 $ 50,148 $ 556,026 $ 42,113
Total Assets $ 62,062,801 $ 62,823,511 $ 5,863,920 $ 30,392,893 $ 5,150,259
Liabilities:
Accrued Management Fees $ 43,884 $ 48,116 $ 4,583 $ 21,771 $ 2,735
Total Liabilities $ 43,884 $ 48,116 $ 4,583 $ 21,771 $ 2,735
Net Assets $ 62,018,917 $ 62,775,395 $ 5,859,337 $ 30,371,122 $ 5,147,524
Net Assets Consist of:
Paid in Capital (see footnote #9) $ 39,807,995 $ 42,516,215 $ 7,396,754 $ 31,819,243 $ 5,242,837
Undistributed Net
Investment Income $ 0 $ 0 $ 7 $ 0 $ 1
Undistributed Net Realized Gain
(Loss) from Security Transactions $ 2 $ 1 ($331,991 ) $ 2 $ 0
Net Unrealized Gain (Loss)
on Investments $ 22,210,920 $ 20,259,179 ($1,205,433 ) ($1,448,123 ) ($95,314 )
Net Assets $ 62,018,917 $ 62,775,395 $ 5,859,337 $ 30,371,122 $ 5,147,524
Shares Outstanding 1,831,430 1,879,436 546,799 2,034,540 339,170
Offering, Redemption and
Net Asset Value Per Share $ 33.86 $ 33.40 $ 10.72 $ 14.93 $ 15.18
*Identified Cost of Securities $ 39,790,309 $ 42,511,243 $ 7,019,206 $ 31,284,990 $ 5,203,460

The accompanying notes are an integral part of the financial statements.

17

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JOHNSON MUTUAL FUNDS December 31, 1999

Statement of Operations

                                             
Stock Funds Bond Funds
Fixed Municipal
Growth Opportunity Realty Income Income
Fund Fund Fund Fund Fund
12/31/99 12/31/99 12/31/99 12/31/99 12/31/99
Investment Income:
Interest $ 101,546 $ 126,738 $ 10,074 $ 1,729,482 $ 207,538
Dividends $ 443,355 $ 328,142 $ 317,726 $ 0 $ 0
Total Investment Income $ 544,901 $ 454,880 $ 327,800 $ 1,729,482 $ 207,538
 
Expenses:
Gross Management Fee $ 531,275 $ 525,654 $ 55,854 $ 275,182 $ 44,217
Management Fee Waiver
(See accompanying note #3) ($26,564 ) ($26,283 ) ($2,793 ) ($41,277 ) ($15,476 )
Total Expenses $ 504,711 $ 499,371 $ 53,061 $ 233,905 $ 28,741
 
Net Investment Income $ 40,190 ($44,491 ) $ 274,739 $ 1,495,577 $ 178,797
 
Realized and Unrealized Gains (Losses):
Net Realized Gain (Loss) from
Security Transactions $ 1,071,337 $ 2,888,171 ($232,203 ) $ 39,278 $ 3,253
Net Unrealized Gain (Loss)
on Investments $ 5,126,367 $ 4,152,996 ($184,150 ) ($2,522,908 ) ($239,989 )
 
Net Gain (Loss) on Investments $ 6,197,704 $ 7,041,167 ($416,353 ) ($2,483,630 ) ($236,736 )
 
Net Increase (Decrease) in Assets
from Operations $ 6,237,894 $ 6,996,676 ($141,614 ) ($988,053 ) ($57,939 )

The accompanying notes are an integral part of the financial statements.

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JOHNSON MUTUAL FUNDS December 31, 1999

Statement of Changes in Net Assets

                                                       
Stock Funds
Growth Fund Opportunity Fund Realty Fund
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
Operations:
Net Investment Income $ 40,190 $ 72,796 ($44,491 ) ($24,884 ) $ 274,739 $ 214,770
Net Realized Gain (Loss)
from Security Transactions $ 1,071,337 $ 2,512,476 $ 2,888,171 $ 512,708 ($232,203 ) ($99,788 )
Net Unrealized Gain (Loss)
on Investments $ 5,126,367 $ 7,713,290 $ 4,152,996 $ 6,762,552 ($184,150 ) ($1,021,284 )
Net Increase (Decrease) in
Assets from Operations $ 6,237,894 $ 10,298,562 $ 6,996,676 $ 7,250,376 ($141,614 ) ($906,302 )
 
Distributions to Shareholders:
Net Investment Income ($40,539 ) ($72,905 ) $ 0 $ 0 ($274,737 ) ($214,765 )
Net Realized Gain from
Security Transactions ($1,071,330 ) ($2,512,484 ) ($2,888,176 ) ($512,704 ) $ 0 $ 0
Net Return of Capital $ 0 $ 0 $ 0 $ 0 $ 0 ($51,078 )
Net (Decrease) in Assets
from Distributions ($1,111,869 ) ($2,585,389 ) ($2,888,176 ) ($512,704 ) ($274,737 ) ($265,843 )
 
Capital Share Transactions:
Proceeds From Sale of Shares $ 12,285,288 $ 10,741,691 $ 11,278,789 $ 8,705,583 $ 1,654,737 $ 6,402,027
Net Asset Value of Shares Issued on
Reinvestment of Distributions $ 1,006,436 $ 2,320,223 $ 2,801,257 $ 499,470 $ 51,211 $ 92,315
Cost of Shares Redeemed ($4,786,653 ) ($4,288,044 ) ($3,625,807 ) ($2,786,372 ) ($487,761 ) ($264,696 )
Net Increase in Assets from
Capital Share Transactions $ 8,505,071 $ 8,773,870 $ 10,454,239 $ 6,418,681 $ 1,218,187 $ 6,229,646
 
Net Change in Net Assets $ 13,631,096 $ 16,487,043 $ 14,562,739 $ 13,156,353 $ 801,836 $ 5,057,501
 
Net Assets at Beginning of Period $ 48,387,821 $ 31,900,778 $ 48,212,656 $ 35,056,303 $ 5,057,501 $ 0
 
Net Assets at End of Period $ 62,018,917 $ 48,387,821 $ 62,775,395 $ 48,212,656 $ 5,859,337 $ 5,057,501

The accompanying notes are an integral part of the financial statements.

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JOHNSON MUTUAL FUNDS December 31,1999

Statement of Changes in Net Assets

                                         
Bond Funds
Fixed Income Fund Municipal Income Fund
Year Ended Year Ended Year Ended Year Ended
12/31/99 12/31/98 12/31/99 12/31/98
Operations:
Net Investment Income $ 1,495,577 $ 1,117,134 $ 178,797 $ 152,992
Net Realized Gain (Loss)
from Security Transactions $ 39,278 $ 56,950 $ 3,253 $ 15,965
Net Unrealized Gain (Loss)
on Investments ($2,522,908 ) $ 608,285 ($239,989 ) $ 22,910
Net Increase (Decrease) in
Assets from Operations ($988,053 ) $ 1,782,369 ($57,939 ) $ 191,867
 
Distributions to Shareholders:
Net Investment Income ($1,495,596 ) ($1,117,058 ) ($178,804 ) ($152,953 )
Net Realized Gain from
Security Transactions ($39,265 ) ($39,907 ) ($3,254 ) ($15,964 )
Net (Decrease) in Assets
from Distributions ($1,534,861 ) ($1,156,965 ) ($182,058 ) ($168,917 )
 
Capital Share Transactions:
Proceeds From Sale of Shares $ 12,474,498 $ 8,764,787 $ 2,148,289 $ 2,219,947
Net Asset Value of Shares Issued on
Reinvestment of Dividends/Gains $ 886,212 $ 739,042 $ 44,667 $ 52,780
Cost of Shares Redeemed ($4,457,580 ) ($5,013,211 ) ($735,309 ) ($2,272,306 )
Net Increase in Assets from
Capital Share Transactions $ 8,903,130 $ 4,490,618 $ 1,457,647 $ 421
 
Net Change in Net Assets $ 6,380,216 $ 5,116,022 $ 1,217,650 $ 23,371
 
Net Assets at Beginning of Period $ 23,990,906 $ 18,874,884 $ 3,929,874 $ 3,906,503
 
Net Assets at End of Period $ 30,371,122 $ 23,990,906 $ 5,147,524 $ 3,929,874

The accompanying notes are an integral part of the financial statements.

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FINANCIAL HIGHLIGHTS GROWTH FUND

Selected Data for a Share Outstanding Throughout the Period for the Growth Fund:

                                               
Year Ended December 31
1999 1998 1997 1996 1995
Net Asset Value
Beginning of Period $ 30.98 $ 25.38 $ 21.16 $ 18.86 $ 14.82
Operations:
Net Investment Income $ 0.02 $ 0.05 $ 0.16 $ 0.19 $ 0.24
Net Gains (Losses) on Securities
(Realized & Unrealized) $ 3.48 $ 7.32 $ 7.01 $ 2.98 $ 4.41
Total Operations $ 3.50 $ 7.37 $ 7.17 $ 3.17 $ 4.65
Distributions:
Dividends from Net
Investment Income ($0.02 ) ($0.05 ) ($0.16 ) ($0.19 ) ($0.24 )
Distributions from Net
Realized Capital Gains ($0.60 ) ($1.72 ) ($2.79 ) ($0.68 ) ($0.37 )
Total Distributions ($0.62 ) ($1.77 ) ($2.95 ) ($0.87 ) ($0.61 )
Net Asset Value
End of Period $ 33.86 $ 30.98 $ 25.38 $ 21.16 $ 18.86
Total Return 11.31 % 29.10 % 33.96 % 16.85 % 31.61 %
Net Assets, End of Period
(Millions) $ 62.02 $ 48.39 $ 31.90 $ 21.42 $ 14.87
Ratios after Fee Waivers: (1)
Ratio of Expenses to
Average Net Assets 0.95 % 0.95 % 0.97 % 1.00 % 1.00 %
Ratio of Net Income to
Average Net Assets 0.07 % 0.19 % 0.65 % 0.99 % 1.42 %
Portfolio Turnover Rate 29.84 % 39.71 % 54.44 % 26.78 % 52.91 %

(1) The Adviser amended the management agreement on 11/18/98 to reduce the maximum management fee on the Growth Fund from 1.30% to 1.00%. The Adviser further waived the maximum management fee to sustain a fee of 0.95%. The Adviser intends this fee waiver to be permanent, although the Adviser retains the right to remove the waiver after April 30, 2003. As of 12/31/99, assuming no waiver of management fee expenses, the Growth Fund ratios would have been: Expenses to Average Net Assets: 1.00% and Net Income to Average Net Assets: 0.03% .

The accompanying notes are an integral part of the financial statements.

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FINANCIAL HIGHLIGHTS OPPORTUNITY FUND

Selected data for a share outstanding throughout the period for the Opportunity Fund:

                                             
Year Ended December 31
1999 1998 1997 1996 1995
Net Asset Value
Beginning of Period $ 31.10 $ 26.44 $ 22.65 $ 19.42 $ 15.70
Operations:
Net Investment Income ($0.02 ) ($0.02 ) $ 0.03 $ 0.06 $ 0.08
Net Gains (Losses) on Securities
(Realized & Unrealized) $ 3.94 $ 5.02 $ 6.13 $ 4.43 $ 3.89
Total Operations $ 3.92 $ 5.00 $ 6.16 $ 4.49 $ 3.97
Distributions:
Dividends from Net
Investment Income $ 0.00 $ 0.00 ($0.03 ) ($0.06 ) ($0.08 )
Distributions from Net
Realized Capital Gains ($1.62 ) ($0.34 ) ($2.34 ) ($1.20 ) ($0.17 )
Total Distributions ($1.62 ) ($0.34 ) ($2.37 ) ($1.26 ) ($0.25 )
Net Asset Value
End of Period $ 33.40 $ 31.10 $ 26.44 $ 22.65 $ 19.42
Total Return 12.65 % 18.93 % 27.26 % 23.10 % 25.27 %
Net Assets, End of Period
(Millions) $ 62.78 $ 48.21 $ 35.06 $ 22.09 $ 15.19
Ratios after Fee Waivers: (1)
Ratio of Expenses to
Average Net Assets 0.95 % 0.95 % 0.97 % 1.00 % 1.00 %
Ratio of Net Income to
Average Net Assets (0.08 %) (0.06 %) 0.11 % 0.28 % 0.59 %
Portfolio Turnover Rate 40.71 % 41.46 % 55.05 % 46.43 % 62.15 %

(1) The Adviser amended the management agreement on 11/18/98 to reduce the maximum management fee on the Opportunity Fund from 1.30% to 1.00%. The Adviser further waived the maximum management fee to sustain a fee of 0.95%. The Adviser intends this fee waiver to be permanent, although the Adviser retains the right to remove the waiver after April 30, 2003. As of 12/31/99, assuming no waiver of management fee expenses, the Opportunity Fund ratios would have been: Expenses to Average Net Assets: 1.00% and Net Income to Average Net Assets: (0.13%).

The accompanying notes are an integral part of the financial statements.

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FINANCIAL HIGHLIGHTS REALTY FUND

Selected Data for a Share Outstanding Throughout the Period for the Realty Fund:

                     
Year Ended December 31
1999 1998
Net Asset Value
Beginning of Period $ 11.54 $ 15.00
Operations:
Net Investment Income $ 0.54 $ 0.61
Net Return of Capital $ 0.11 $ 0.12
Net Gains (Losses) on Securities (Realized and Unrealized) ($0.93 ) ($3.46 )
Total Operations ($0.28 ) ($2.73 )
Distributions:
Dividends from Net Investment Income ($0.54 ) ($0.61 )
Distributions from Return of Capital $ 0.00 ($0.12 )
Distributions from Net realized Capital Gains $ 0.00 $ 0.00
Total Distributions ($0.54 ) ($0.73 )
Net Asset Value
End of Period $ 10.72 $ 11.54
Total Return (2.47 %) (18.56 %)
Net Assets, End of Period
(Millions) $ 5.86 $ 5.10
Ratios after Fee Waivers: (1)
Ratio of Expenses to
Average Net Assets 0.95 % 0.48 %
Ratio of Net Income to
Average Net Assets 4.93 % 5.17 %
Portfolio Turnover Rate 11.21 % 12.07 %

(1) The Adviser amended the management agreement on 11/18/98 to reduce the maximum management fee on the Realty Fund from 1.30% to 1.00%. The Adviser waived the management fee in entirety for the period 1/1/98 — 6/30/98. The Adviser waived the maximum management fee to sustain a fee of 0.95% for the period 7/1/98 — 12/31/98, and through 1999. The Adviser intends the final fee waiver to be permanent, although the Adviser retains the right to remove the waiver after April 30, 2003. As of 12/31/99, assuming no waiver of management fee expenses, the Realty Fund ratios would have been: Expenses to Average Net Assets: 1.00% and Net Income to Average Net Assets: 4.88%.

The accompanying notes are an integral part of the financial statements.

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FINANCIAL HIGHLIGHTS FIXED INCOME FUND

Selected Data for a Share Outstanding Throughout the Period for the Fixed Income Fund:

                                               
Year Ended December 31
1999 1998 1997 1996 1995
Net Asset Value Beginning of Period $ 16.36 $ 15.84 $ 15.45 $ 15.84 $ 14.20
Operations:
Net Investment Income $ 0.81 $ 0.86 $ 0.88 $ 0.86 $ 0.83
Net Gains (Losses) on Securities
(Realized & Unrealized) ($1.41 ) $ 0.55 $ 0.39 ($0.39 ) $ 1.64
Total Operations ($0.60 ) $ 1.41 $ 1.27 $ 0.47 $ 2.47
Distributions:
Dividends from Net
Investment Income ($0.81 ) ($0.86 ) ($0.88 ) ($0.86 ) ($0.83 )
Distributions from Net
Realized Capital Gains ($0.02 ) ($0.03 ) $ 0.00 $ 0.00 $ 0.00
Total Distributions ($0.83 ) ($0.89 ) ($0.88 ) ($0.86 ) ($0.83 )
Net Asset Value
End of Period $ 14.93 $ 16.36 $ 15.84 $ 15.45 $ 15.84
Total Return (3.68 %) 9.05 % 8.44 % 3.11 % 17.70 %
Net Assets, End of Period
(Millions) $ 30.37 $ 24.00 $ 18.87 $ 16.14 $ 15.97
Ratios after Fee Waivers: (1)
Ratio of Expenses to
Average Net Assets 0.85 % 0.85 % 0.85 % 0.85 % 0.85 %
Ratio of Net Income to
Average Net Assets 5.45 % 5.40 % 5.67 % 5.56 % 5.54 %
Portfolio Turnover Rate 13.66 % 24.89 % 29.33 % 14.04 % 4.95 %

(1) The Adviser amended the management agreement on 11/18/98 to reduce the maximum management fee on the Fixed Income Fund from 1.15% to 1.00%. The Adviser further waived the maximum management fee to sustain a fee of 0.85%. The Adviser intends this fee waiver to be permanent, although the Adviser retains the right to remove the waiver after April 30, 2003. As of 12/31/99, assuming no waiver of management fee expenses, the Fixed Income Fund ratios would have been: Expenses to Average Net Assets: 1.00% and Net Income to Average Net Assets: 5.30%.

The accompanying notes are an integral part of the financial statements.

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FINANCIAL HIGHLIGHTS MUNICIPAL INCOME

Selected Data for a Share Outstanding Throughout the Period for the Municipal Income Fund:

                                             
Year Ended December 31
1999 1998 1997 1996 1995
Net Asset Value
Beginning of Period $ 15.99 $ 15.88 $ 15.57 $ 15.68 $ 14.73
Operations:
Net Investment Income $ 0.60 $ 0.64 $ 0.64 $ 0.63 $ 0.63
Net Gains (Losses) on Securities
(Realized & Unrealized) ($0.80 ) $ 0.18 $ 0.32 ($0.11 ) $ 0.96
Total Operations ($0.20 ) $ 0.82 $ 0.96 $ 0.52 $ 1.59
Distributions:
Dividends from Net
Investment Income (1) ($0.60 ) ($0.64 ) ($0.64 ) ($0.63 ) ($0.63 )
Distributions from Net
Realized Capital Gains ($0.01 ) ($0.07 ) ($0.01 ) $ 0.00 ($0.01 )
Total Distributions ($0.61 ) ($0.71 ) ($0.65 ) ($0.63 ) ($0.64 )
Net Asset Value
End of Period $ 15.18 $ 15.99 $ 15.88 $ 15.57 $ 15.68
Total Return (1.24 %) 5.19 % 6.23 % 3.43 % 10.88 %
Net Assets, End of Period
(Millions) $ 5.15 $ 3.93 $ 3.90 $ 2.81 $ 2.28
Ratios after Fee Waivers: (2)
Ratio of Expenses to
Average Net Assets 0.65 % 0.65 % 0.63 % 0.75 % 0.68 %
Ratio of Net Income to
Average Net Assets (1) 4.03 % 4.01 % 4.19 % 4.18 % 4.28 %
Portfolio Turnover Rate 8.44 % 20.70 % 9.95 % 6.25 % 7.81 %

(1) All distributions are Federally tax exempt.

(2) The Adviser amended the management agreement on 11/18/98 to reduce the maximum management fee on the Municipal Income Fund from 1.15% to 1.00%. The Adviser further waived the maximum management fee to sustain a fee of 0.65%. The Adviser intends this fee waiver to be permanent, although the Adviser retains the right to remove the waiver after April 30, 2003. As of 12/31/99, assuming no waiver of management fee expenses, the Municipal income Fund ratios would have been: Expenses to Average Net Assets: 1.00% and Net Income to Average Net Assets: 3.68%.

The accompanying notes are an integral part of the financial statements.

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NOTES TO THE FINANCIAL STATEMENTS

1) Organization:

The Growth Fund, Fixed Income Fund, Opportunity Fund, Municipal Income Fund, and the Realty 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 Realty Fund began offering its shares publicly on January 2, 1998.

The investment objective of the Growth Fund is long term capital growth. The investment objective of the Opportunity Fund is long term capital growth. The investment objective of the Fixed Income Fund is a high level of income over the long term consistent with preservation of capital. The investment objective of the Municipal Income Fund is a high level of federally tax-free income over the long term consistent with preservation of capital. The investment objective of the Realty Fund is above average income and long term capital growth. The Realty Fund invest primarily in real estate related equity securities.

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 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 to comply with the special provisions of the Internal Revenue Code available to registered investment companies. Accordingly, no tax provision is required.

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, Opportunity Fund and Realty Fund paid the Adviser a management fee at the annual rate of 0.95% of each Funds’ average daily net assets, which was accrued daily and paid monthly. The Fixed Income Fund paid 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 paid the Adviser a management fee at the annual rate of 0.65% of the Fund’s average daily net assets, both of which are accrued daily and paid monthly.

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NOTES TO THE FINANCIAL STATEMENTS

3) Investment Advisory Agreement, continued:

The Adviser received management fees for the period January 1 - December 31, 1999 as indicated below. These fees are after the Adviser waived part of the management fees on each of the funds from the maximum of 1.00% to the effective fee ratios listed below. The Adviser intends the fee waivers to be permanent, although the Adviser has the right to remove these fee waivers any time after April 30, 2003.

                                         
Fee Effective Fee Management
Fund Fee Waiver Fee Ratio Waiver Fee
Growth Fund 1.00 % 0.05 % 0.95 % ($26,564 ) $ 504,711
Opportunity Fund 1.00 % 0.05 % 0.95 % ($26,283 ) $ 499,371
Realty Fund 1.00 % 0.05 % 0.95 % ($2,793 ) $ 53,061
Fixed Income Fund 1.00 % 0.15 % 0.85 % ($41,277 ) $ 233,905
Municipal Income Fund 1.00 % 0.35 % 0.65 % ($15,476 ) $ 28,741

4) Related Party Transactions:

All officers and one trustee of the Johnson Mutual Funds Trust are employees of Johnson Investment Counsel, Inc., the Adviser. There are three independent Trustees. Each of the three independent Trustees received compensation during the 12 months ending December 31, 1999 of $4,000 for his responsibilities as trustee and has received no additional compensation from the Trust. Total Compensation for the Trustees, as a group was $12,000 for the period and as a group they 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 December 31, 1999, 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, Opportunity Fund, Realty Fund, Fixed Income Fund, and the Municipal Income Fund.

Johnson Financial, Inc. is a wholly owned subsidiary of Johnson Investment Counsel, Inc., the Adviser. Johnson Financial, Inc. provides transfer agency, fund accounting, and administration services to the Funds. These services are paid for by the Adviser.

5) Purchases and Sales of Securities:

During the 12 months ended December 31, 1999, purchases and sales of investment securities aggregated:

                                 
Investment Securities Other
Than Short Term Investments and
U.S. Government Obligations U.S. Government Obligations
Fund Purchases Sales Purchases Sales
Growth Fund $ 23,488,451 $ 16,053,042 $ 0 $ 0
Opportunity Fund $ 28,385,293 $ 21,453,003 $ 0 $ 0
Realty Fund $ 1,836,871 $ 624,162 $ 0 $ 0
Fixed Income Fund $ 9,827,883 $ 2,989,763 $ 2,339,347 $ 701,760
Municipal Income Fund $ 1,519,291 $ 370,673 $ 0 $ 0

6) Capital Share Transactions:

As of December 31, 1999, 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.

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NOTES TO THE FINANCIAL STATEMENTS

Capital Share Transactions for the Period January 1 - December 31, 1999:

                                         
Growth Opportunity Realty Fixed Municipal
Fund Fund Fund Income Fund Income Fund
Shares Sold to Investors 392,222 360,547 148,037 796,474 137,099
Shares Issued on Reinvestment Dividends 29,770 84,656 4,698 57,863 2,896
Subtotal 421,992 445,203 152,735 854,337 139,995
Shares Redeemed (152,458 ) (115,880 ) (44,232 ) (286,678 ) (46,649 )
Net Increase/Decrease During Period 269,534 329,323 108,503 567,659 93,346
Shares Outstanding:
December 31, 1998 (Beginning of Period) 1,561,896 1,550,113 438,296 1,466,881 245,824
December 31, 1999 (End of Period) 1,831,430 1,879,436 546,799 2,034,540 339,170

7) Security Transactions:

For Federal income tax purposes, the cost of investments owned on December 31, 1999 was the same as identified cost. As of December 31, 1999 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 Fund $ 24,203,383 ($ 1,992,463 ) $ 22,210,920
Opportunity Fund $ 22,443,041 ($ 2,183,862 ) $ 20,259,179
Realty Fund $ 25,910 ($ 1,231,343 ) ($1,205,433 )
Fixed Income Fund $ 38,967 ($ 1,487,090 ) ($1,448,123 )
Municipal Income Fund $ 20,899 ($ 116,213 ) ($95,314 )

8) Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

9) Reclassification:

In accordance with AICPA Statement of Position 93-2, the components of the net assets of the Opportunity Fund have been reclassified to the extent that the net investment loss of $44,491 sustained during the fiscal year ended December 31, 1999, which represents a permanent difference for income tax purposes, has been reclassified as a decrease in the net capital paid in.

10) Net Investment Income and Net Realized Capital Losses É Realty Fund:

The Net Investment Income on the Realty Fund includes Estimated Return of Capital as of December 31, 1999.

As of December 31, 1999, the Realty Fund had accumulated net realized capital loss carryovers of ($99,788) expiring in 2006 and ($232,203) expiring in 2007. To the extent that the Realty Fund realizes future net capital gains, those gains will be offset by any unused capital loss carryovers.

11) Financial Instruments Disclosure:

There are no reportable financial instruments that have any off balance sheet risk as of December 31, 1999.

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McCurdy & Associates CPA’s, Inc.
27955 Clemens Road
Westlake, Ohio 44145
Phone: (440) 835-8500
Fax: (440) 835-1093

INDEPENDENT AUDITOR’S REPORT

To the Shareholders and Board of Trustees
Johnson Mutual funds Trust

      We have audited the statements of assets and liabilities, including the portfolios of investments, of the Johnson Mutual Funds Trust (comprising, respectively, of the Growth Fund, the Opportunity Fund, the Realty Fund, the Fixed Income Fund, and the Municipal Income Fund) as of December 31, 1999, and the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the periods indicated. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

      We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1999, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

      In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective portfolios constituting the Johnson Mutual Funds Trust as of December 31, 1999, the results of the operations, the changes in their net assets, and the financial highlights for each of the periods indicated in conformity with generally accepted accounting principles.

McCurdy & Associates CPA’s, Inc.
Westlake, Ohio 44145
January 21, 2000

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Trustees and Officers

     
Timothy E. Johnson
John W. Craig
Ronald H. McSwain
Kenneth S. Shull		 Trustee, President
Independent Trustee
Independent Trustee
Independent Trustee
 
Dale H. Coates
Richard T. Miller
Dianna J. Rosenberger
David C. Tedford		 Vice President
Vice President
CFO, Treasurer
Secretary

Transfer Agent and Fund Accountant

Johnson Financial, Inc.
3777 West Fork Road
Cincinnati, Ohio 45247
(513) 661-3100  (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

Legal Counsel

Brown, Cummins & Brown Co., L.P.A.
3500 Carew Tower
Cincinnati, Ohio 45202

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.



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