Family of Funds
Dear Fellow Shareholders: July 19, 1996
After months of excitement, with the financial markets surging to new highs
almost weekly, stock market indices appear to have hit a "brick wall" in
late May. Until this time, new cash flows into the market were being
invested primarily in small capitalization names at the expense of large
and mid-cap issues.
Investors seemed to be influenced by evidence of a strengthening economy
and rising commodity prices that exerted upward pressure on interest rates.
In June, the heightened economic growth resulted in erratic stock market
behavior as funds shifted out of the small-cap issues into quality blue-
chip securities.
Few investors would deny that the principal underlying influence on the
direction of stock prices has been the trend of interest rates. Currently,
we appear to be at the beginning of periodic rate increases by the Federal
Reserve and this action historically has led to a correction in the major
market averages.
The two schools of thought surrounding Federal Reserve policy are first,
those who believe the economy will slow markedly in the second half of
1996, alleviating inflationary concerns and prompting an eventual lowering
of interest rates; and second, those who believe economic growth will
continue to exceed expectations, causing inflationary pressures to increase
and ultimately forcing interest rates higher.
Based on the market action in early July, investors' sentiment appears to
be shifting toward an improving economy, setting the stage for a pre-
election day increase in the Federal Fund's rate.
The extent and degrees of a stock market correction/consolidation will
ultimately depend on individual investors. If a short-term market decline
frightens investors out of the market, the correction could be significant.
However, if investors follow the lesson learned after the 1987 debacle, and
reinforced over the years that "every correction is a buying opportunity"
and that "over the long term stocks always go up," the correction should
be short-lived and present a great buying opportunity that could result in
strong second half performance.
Whatever the future holds, investing in quality growth companies has
usually paid off over the long run. The current excessive market
volatility should be ignored, due to the increasingly illiquid nature of
the financial markets, especially in the smaller capitalization securities.
We would consider a market correction as an opportunity to buy the best
companies at a discount to their growth rates which should enhance our
funds' long-term performance.
Best personal regards,
Robert S. Bacarella
President and Founder
<page1>
<TABLE>
<CAPTION>
Table of Contents
Performance Highlights
<S> <C>
Monetta Fund 3
Monetta Mid-Cap Equity Fund 4
Monetta Large-Cap Equity Fund 5
Monetta Balanced Fund 6
Monetta Intermediate Bond Fund 7
Monetta Government Money Market Fund 8
Schedule of Investments
Monetta Fund 9
Monetta Mid-Cap Equity Fund 12
Monetta Large-Cap Equity Fund 14
Monetta Balanced Fund 15
Monetta Intermediate Bond Fund 17
Monetta Government Money Market Fund 18
Financial Statements
Notes to Financial Statements 19
Statements of Assets and Liabilities 26
Statements of Operations 28
Statements of Changes in Net Assets 30
</TABLE>
Footnote:
Past performance is no guarantee of future results. The principal value
and return on your investment will fluctuate and on redemption may be worth
more or less than your original cost.
References to individual securities are the views of the Adviser at the
date of this report and may change. References are not a recommendation to
buy or sell any security.
<page2>
Monetta Fund
Period ended 6/30/96
Investment Objective: Capital Appreciation/Income
Market Capitalization Range: $50 million - $1 billion
Total Net Assets: $307 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 5 Years (5/6/86)
<S> <C> <C> <C>
Monetta Fund 14.3% 11.2% 12.3%
Russell 2500 24.2% 17.9% 12.4%
NASDAQ Composite* 27.0% 20.0% 11.7%
S &P 500* 26.0% 15.7% 14.3%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Monetta Rusell
(Fiscal Year Covered) Equity Fund 2500 NASDQ S & P
- --------------------- ----------- ------ ------ ------
<S> <C> <C> <C> <C>
6/86 1.00 10,533 10,130 10,590
9/86 (6.20) 9,505 8,783 9,849
12/86 3.60 9,631 8,765 10,400
3/87 15.10 11,753 10,834 12,615
6/87 0.70 11,823 10,736 13,246
9/87 (3.20) 12,402 11,262 14,121
12/87 (9.50) 9,180 8,402 10,943
3/88 6.20 10,651 9,544 11,567
6/88 12.70 11,374 10,079 12,331
9/88 2.30 11,281 9,928 12,368
12/88 0.50 11,266 9,789 12,751
3/89 3.10 12,137 10,464 13,656
6/89 8.00 13,058 11,228 14,858
9/89 4.70 14,012 12,227 16,448
12/89 (1.20) 14,568 11,787 16,793
3/90 5.40 14,163 11,316 16,289
6/90 11.73 14,721 12,040 17,299
9/90 (19.29) 11,485 8,994 14,929
12/90 17.20 12,401 9,785 16,258
3/91 18.50 15,559 12,672 18,632
6/91 3.00 15,529 12,558 18,576
9/91 13.50 16,864 13,964 19,560
12/91 12.50 18,192 15,598 21,204
3/92 0.64 18,971 16,144 20,673
6/92 (6.40) 18,109 15,127 21,066
9/92 2.97 18,604 15,717 21,719
12/92 8.73 21,137 18,294 22,827
3/93 (6.63) 22,138 18,642 23,010
6/93 0.74 22,602 19,071 23,102
9/93 7.78 24,200 20,673 23,702
12/93 (0.87) 24,632 20,962 24,247
3/94 (2.64) 24,086 20,062 23,324
6/94 (5.42) 23,221 19,050 23,415
9/94 7.04 24,886 20,624 24,560
12/94 (4.85) 24,360 20,292 24,555
3/95 9.64 26,160 22,053 26,945
6/95 6.91 28,623 25,189 29,512
9/95 12.45 31,374 28,160 31,870
12/95 (2.88) 32,231 28,392 33,764
3/96 1.54 34,123 29,720 35,577
6/96 3.10 35,544 31,976 37,171
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Fund, the S & P 500 Composite Index, and the
NASDAQ Composite Index and the Russell 2500 Stock Index. The S & P 500 and
the Russell 2500 indices are a broad measure representative of the general
market, while the NASDAQ measures performance of stocks in the over-the-
counter market. Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
Top 5 Equity Holdings**
% of Net Assets
<S> <C>
Glenayre Technologies Inc. 4.8%
Hologic, Inc. 3.3%
CKE Restaurants, Inc. 3.2%
The Sports Authority, Inc. 3.2%
Genzyme Corp - Genl D.V. 2.9%
Total Top 5 Holdings 17.4%
</TABLE>
COMMENTARY:
The Monetta Fund was up 3.1% during the second quarter, increasing the
fund's return since year-end to 4.7%. Overall the fund's return was below
that of its benchmark (the Russell 2500) largely due to continued erosion
in the Technology Sector of the portfolio. The affected companies were
primarily in the semiconductor area. As part of our downside sell
discipline, we sold Cypress Semiconductor, S3, Inc. and Ultratech Stepper.
In an effort to shift focus away from this sector, the overall technology
weighting was reduced from approximately 30% to 14%. The cash was
redeployed in the Industrial and Consumer Discretionary areas.
In the Industrial area, new purchases included; Checkpoint Systems, a
developer of electronic merchandising systems and Titanium Metals Corp., a
supplier of titanium for the aerospace and golf club industries. Other
additions in the Consumer Discretionary areas were Just For Feet, Nine West
and Bed Bath & Beyond - all core growth companies.
We have identified a number of premier growth companies that are candidates
for purchase at predetermined price points. We intend to use market
weakness as a buying opportunity to purchase these solid growth companies
that have the best opportunity to meet or exceed analyst's earnings
estimates.
<page3>
Monetta Mid-Cap Equity Fund
Period ended 6/30/96
Investment Objective: Capital Appreciation
Market Capitalization Range: $1 billion - $5 billion
Total Net Assets: $17.8 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 2 Years (3/1/93)
<S> <C> <C> <C>
Monetta Mid-Cap Equity Fund 15.5% 20.8% 21.5%
S & P 400* 21.6% 22.0% 14.6%
S &P 500* 26.0% 26.0% 16.3%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Midcap S & P S & P
(Fiscal Year Covered) Equity Fund 400 Index 500 Index
- --------------------- ------------ ---------- ----------
<S> <C> <C> <C>
3/1/93 10,000 10,000 10,000
3/93 11,670 10,220 10,080
6/93 11,880 10,455 10,120
9/93 13,120 10,978 10,383
12/93 13,540 11,274 10,622
3/94 13,475 10,793 10,218
6/94 13,109 10,399 10,258
9/94 13,887 11,103 10,759
12/94 13,835 10,817 10,757
3/95 14,835 11,692 11,804
6/95 16,536 12,723 12,929
9/95 17,603 13,965 13,955
12/95 17,233 14,165 14,785
3/96 18,717 15,037 15,578
6/96 19,106 15,470 16,276
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Mid-Cap Equity Fund to the S & P 500 and
400. The S & P 500 and 400 indices are broad measures representative of
the general market. Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
TOP 5 EQUITY HOLDINGS:
% of Net Assets
<S> <C>
Danaher Corp. 2.4%
Coleman Co., Inc. 2.4%
Safeway, Inc. 2.2%
AMETEK, Inc. 2.2%
Knight Transportation, Inc. 2.1%
Total Top 5 Holdings 11.3%
</TABLE>
COMMENTARY:
The Monetta Mid-Cap Fund was up 2.1% during the second quarter, slightly
below the 2.9% benchmark return of the S&P 400 Index. For the six-month
period ending June 30, the fund's 10.9% return compared favorably to its
benchmark return of 9.2%.
Since year-end the fund benefited from its weightings in the Industrial
and Financial Sectors. The best performing securities were Danaher Corp.,
Starbucks and Knight Transportation.
At June 30, the fund's cash position totaled 18.6% of the portfolio, up
from 9.3% at March 31. Cash was increased primarily from security sales in
the Financial Sector. Stocks hitting their price targets were sold,
including AFLAC, BostonFed Bancorp., and Mercury Finance.
New stock purchases during the quarter included; Mirage Resorts, Inc., TJX
Companies, USA Waste Service and Precision Castparts Corporation.
Despite the erratic and extremely volatile financial markets, we believe
the primary direction is up. While the bull market remains intact, prices
appear slightly extended and therefore we plan to use market corrections as
opportunities to invest the fund's cash. The sectors that appear most
attractive are retail, oils and telecommunications.
<page4>
Monetta Large-Cap Equity Fund
Period ended 6/30/96
Investment Objective: Capital Appreciation
Market Capitalization Range: $5 billion +
Total Net Assets: $1.3 million
PERFORMANCE:
<TABLE>
<CAPTION>
Six Months Ended Total Return
6/30/96 Since Incept(9/1/95)
<S> <C> <C>
Monetta Large-Cap
Equity Fund 12.8% 19.3%
S & P 500* 10.1% 21.6%
*Source Lipper Analytical Services, Inc.
</TABLE>
The S & P 500 is a broad measure representative of the general market.
Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
TOP 5 EQUITY HOLDINGS:
% of Net Assets
<S> <C>
Worldcom, Inc. 4.9%
U.S. Robotics Corp. 3.8%
Norwest Corp. 3.6%
Electronic Data Systems 3.6%
Microsoft Corp. 3.6%
Total Top 5 Holdings 19.5%
</TABLE>
COMMENTARY:
The Monetta Large-Cap Equity Fund continues to post excellent performance.
During the second quarter, the fund was up 5.1%, exceeding the return of
the S&P 500 Index of 4.5%. For the six months ended June 30, the fund
appreciated 12.8% versus a 10.1% return for the S&P 500 Index.
During the quarter ended June 30, the fund's cash position was reduced to
15% from 19%. Within industry sectors, the largest shift was in the
Healthcare Sector which was reduced from approximately 22% of the portfolio
to 13%. Securities sold included Eli Lilly, Merck and Columbia Healthcare
due to concerns over drug pricing flexibility. Cash proceeds from these
sales were invested primarily in the consumer discretionary area. New
purchases included; Home Depot, Sears and several transaction processing
companies, such as, First Data Corp. and Electronic Data Systems.
Although there was no material change in the Technology Sector weighting,
3COM was sold when it hit our price objective and Applied Materials was
sold due to concerns surrounding the company's fundamentals. Proceeds were
reinvested into Intel Corp., the leader in the PC Microprocessor industry.
Our investment strategy is to maintain a high quality, blue-chip portfolio,
that is less risky and volatile than the general market.
<page5>
Balanced Fund
Period ended 6/30/96
Investment Objective: Capital Appreciation/Income
Market Capitalization Range: $50 million +
Average Maturity: 1.8 years
Total Net Assets: $576 thousand
PERFORMANCE:
<TABLE>
<CAPTION>
Six Months Ended Total Return
6/30/96 Since Incept(9/1/95)
<S> <C> <C>
Monetta Balanced Fund 12.2% 19.2%
S &P 500* 10.1% 21.6%
Lehman Govt/Corp Bond Index* (1.9)% 3.7%
*Source Lipper Analytical Services, Inc.
</TABLE>
The S & P 500 is broad measure representative of the general market, while
the Lehman Government/Corporate Bond Index measures that specific segment
of the bond market. Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
TOP 5 EQUITY HOLDINGS:
% of Net Assets
<S> <C>
CKE Restaurants, Inc. 3.1%
TJX Companies, Inc. 2.9%
Worldcom, Inc. 2.9%
First Data Corp. 2.8%
Intel Corp. 2.5%
Total Top 5 Holdings 14.2%
</TABLE>
COMMENTARY:
Monetta Balanced Fund posted a strong second quarter, up 7.0%, exceeding
its primary benchmarks of the S&P 500 and Lehman Brother Govt/Corp Bond
Index which were up 4.5% and 0.5%, respectively. Since year-end through
June 30, the fund was up 12.2%.
Throughout the quarter the Fund maintained an approximate portfolio mix of
63% common stocks and 37% fixed income investments.
During the second quarter the manager reduced the fund's exposure to the
Financial and Healthcare Sectors primarily due to concerns over rising
interest rates and drug pricing flexibility. Securities sold included;
Mercury Finance, Roosevelt Financial Group, Eli Lilly and Merck. Assets
were redeployed in the Consumer and Industrial Sectors. New purchases
included; Home Depot, TJX Companies, Ensco International and Sunstrand
Corp.
The fixed income portion of the Fund consists primarily of intermediate
term U.S. Treasury Notes and high quality variable demand notes. In
anticipation of higher interest rates, the average maturity was reduced
from 12.4 years to 1.8 years - a very defensive posture. We believe the
credit markets appear to have one or two Federal Reserve tightenings ahead,
although this is definitely the minority view at this time.
<page6>
Monetta Intermediate Bond Fund
Period ended 6/30/96
Investment Objective: Income
30-Day SEC Yield: 6.08%
Average Maturity: 4.4 Years
Total Net Assets: $3.7 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 2 Years (3/5/93)
<S> <C> <C> <C>
Monetta Intermediate Bond Fund 4.9% 8.9% 6.8%
Lehman Gov/Corp Intermediate
Bond Index* 5.0% 7.7% 5.2%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
<TABLE>
<CAPTION>
Measurement Period Intermediate
(Fiscal Year Covered) Bond Fund Lehman
- --------------------- ------------ --------
<S> <C> <C>
3/1/93 10,000 10,007
3/93 10,000 10,028
6/93 10,399 10,255
9/93 10,732 10,486
12/93 10,817 10,504
3/94 10,585 10,291
6/94 10,494 10,229
9/94 10,613 10,313
12/94 10,705 10,302
3/95 11,270 10,754
6/95 11,866 11,292
9/95 12,046 11,479
12/95 12,282 11,883
3/96 12,245 11,784
6/96 12,428 11,859
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Intermediate Bond Fund to the Lehman
Government/Corporate Intermediate Bond Index. The Lehman
Government/Corporate Intermediate Bond Index measures that specific
segment of the bond market. Please refer to footnote on the bottom of
page 2.
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
Maturity Profile
<S> <C>
1 Year or Less 33.6%
1-3 Years 6.9%
4-6 Years 15.2%
7-10 Years 43.8%
Over 10 Years 0.5%
Total 100%
</TABLE>
COMMENTARY:
The Monetta Intermediate Bond Fund posted a solid quarterly return, up
1.5% versus a 0.6% return for the Lehman Govt/Corp Intermediate Bond
Index. For the six-month period ending June 30, the fund was up 1.1%.
Dividends paid during the quarter totaled $0.14. As of June 30, the
fund's 30 day SEC Yield was 6.08%.
Affecting the fixed income markets was the greater than anticipated
strength in the economy during the first half of the year. This economic
strength necessitated an upward adjustment of interest rate forecasts and
raised the possibility of tightening monetary policy.
This fund is positioned very defensively with an average maturity of 4.4
years and is invested primarily in high quality securities. Sector
weightings were basically unchanged during the quarter. New cash inflows
were invested in demand notes, as we plan to take advantage of potential
Federal Reserve tightening. As of June 30, the portfolio consisted of
approximately 17% demand notes.
We expect the Fed will continue to pursue a monetary policy designed to
limit inflation to no more than 3%. This suggests a long-term rate on
thirty-year Treasury obligations between 6% to 6 1/2%. With the rate
currently around the 7% level we expect the outlook for interest rates to
decline beginning in the fourth quarter or first quarter next year.
<page7>
Monetta Government Money Market Fund
Period ended 6/30/96
Investment Objective: Income and Capital Preservation
7-Day Yield: 4.8%
Average Days to Maturity: 64 Days
Total Net Assets: $5.7 million
PERFORMANCE:
<TABLE>
<CAPTION>
Average Annual Total Return
Since Incep.
1 Year 2Years (3/1/93)
<S> <C> <C> <C>
Monetta Government
Money Market Fund 5.4%** 5.4%** 4.4%**
Lipper U.S. Gov't Money
Market Funds Avg.* 5.0%** 4.9%** 4.4%**
</TABLE>
*Source Lipper Analytical Services, Inc.
**Total returns are net of advisory fees waived and voluntary
absorption of the Funds' operating expenses by the Advisor. Please refer
to footnote on the bottom of page 24.
An investment in the Monetta Government Money Market Fund is neither
insured or guaranteed by the U.S. Government. There can be no assurance
that the Fund will be able to maintain a stable $1.00 per share net
asset value. Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
<TABLE>
<CAPTION>
ALLOCATION:
% of Net Assets
<S> <C>
U. S. Treasuries 63.8%
Government Agencies 35.5%
Total Investments 99.3%
Other Assets & Liabilities 0.7%
Total 100.0%
</TABLE>
COMMENTARY:
The Monetta Government Money Market Fund posted a competitive 1.2% return
over the past quarter. For the six months ending June 30, the fund was
up 2.4%.
The fund's 7-day yield was 4.8% at June 30, up slightly during the
quarter.
During the quarter, the fund's average maturity was 70 days, closing the
quarter with an average maturity of 64 days.
Our near term investment strategy is to schedule maturities around the
Federal Reserve's Federal Open Market Committee meeting dates. We
believe the Federal Reserve will eventually raise rates slightly, up to
25 to 50 basis points. The fund is therefore in a position to take
advantage of any short-term rate increases.
This is a very defensive fund, invested in U.S. Government agency
securities, with preservation of capital as its primary investment
objective.
<page8>
Schedule of Investments
June 30, 1996
(unaudited)
Monetta Fund
<TABLE>
<CAPTION>
Shares or Quoted Market Value
Principal Amount (In Thousands)
COMMON STOCKS - 89.5%
<S> <C>
Consumer Related-29.8% $91,508
Broadcasting/Cable TV-6.0%
*175,000 Chancellor Corp.-CL A $5,469
*120,000 Evergreen Media 5,130
*220,000 Lin Television Corp. 7,920
18,519
Recreation & Entertainment-2.2%
*100,000 Cinar Films, Inc. 2,175
150,000 Harveys Casinos Resorts 3,187
*130,000 West Coast Ent. Corp. 1,284
6,646
Retail Trades-13.0%
*75,000 Bed Bath & Beyond 2,006
*25,000 Cannondale Corp. 506
*50,000 Just For Feet, Inc. 2,644
*50,000 Nine West 2,556
*300,000 OfficeMax, Inc. 7,162
150,000 TJX Companies, Inc. 5,063
*200,000 Vans, Inc. 3,400
39,838
Restaurant & Lodging-6.5%
390,500 CKE Restaurants, Inc. 9,958
*157,500 IHOP Corp. 4,252
*215,000 Planet Hollywood 5,805
20,015
Miscellaneous Services-2.1%
*100,000 Accustaff, Inc. 2,725
*250,000 ATC Environmental 3,281
*15,000 CKS Group, Inc. 484
6,490
Financial Related-6.0% $18,394
Financial Services-6.0%
100,000 Advanta Corp.-CL B $4,525
*150,000 American Travelers 3,450
*200,000 Concord EFS, Inc. 7,100
150,000 Money Store 3,319
18,394
Industrial Related-13.3% $40,992
Energy Resources & Services-7.6%
*100,000 Belco Oil & Gas Corp. $3,550
*200,000 Ensco, International 6,500
*174,300 Input/Output, Inc. 5,643
150,000 Sonat Offshore Drilling 7,575
23,268
Industrial/Electronics Products-4.0%
*100,000 Checkpoint Systems 3,438
200,000 Harnischfeger Industries 6,650
*125,100 Polymer Group, Inc. 2,189
12,277
<page9>
Mining & Mineral Resources-1.7%
*75,000 Oregon Metallurgical 2,213
*125,000 Titanium Metals Corp. 3,234
5,447
Medical Related-26.7% $81,940
Medical Technology-6.9%
*100,000 Coherent, Inc. $5,200
*230,000 Hologic, Inc. 10,177
*150,000 IDEXX Laboratories 5,888
21,265
Pharmaceuticals-8.3%
*100,000 Capstone Pharmacy Svcs 1,287
*175,000 Genzyme Corp-Genl Div. 8,794
*100,000 Parexel Inter'l 4,825
*71,400 Qiagen N.V. 1,080
*250,000 Watson Pharmaceutical 9,469
25,455
Physcian Services-11.5%
*150,000 American Medical Response 5,288
*400,000 American Oncology Resources 8,700
*150,000 Genesis Health Ventures, Inc. 4,706
*100,000 Medpartners/Mullikin 2,088
*100,000 Occusystems, Inc. 3,737
*150,000 Phycor, Inc. 5,700
*45,000 Serologicals Corp. 1,192
*50,000 Veterinary Centers of America 1,119
35,220
Technology Related-13.7% $42,257
Computers & Office Equipment-0.6%
*65,000 Comverse Technology $1,983
Computer Software-0.9%
*32,500 Checkpoint Software 780
*50,000 Citrix Systems, Inc. 1,900
2,680
Telecommunications Svcs & Equip.-12.2%
*50,000 Aspect Telecom. 2,475
*150,000 Brightpoint, Inc. 3,225
*300,000 Glenayre Technologies, Inc. 15,000
*175,000 Intermedia Comm. of FL. 5,644
*100,000 P-COM, Inc. 3,150
*100,000 Premisys Comm., Inc. 6,100
*25,000 Shiva Corp. 2,000
37,594
Total Common Stocks
(Cost $244,494)(a) 275,091
Variable Demand Notes-0.7%
2,071,800 Warner Lambert 2,072
<page10>
Commercial Paper-16.0%
3,000,000 Bell South-5.40%
Due 07/02/96 5,993
4,500,000 Cargill, Inc.-5.30%
Due 07/03/96 2,999
4,000,000 Dean Witter-5.35%
Due 07/05/96 4,499
6,000,000 Anheuser-5.30%
Due 07/09/96 3,998
6,000,000 GE Capital-5.32%
Due 07/10/96 5,991
5,000,000 Merrill Lynch-5.36%
Due 07/08/96 4,995
4,200,000 Merrill Lynch-5.33%
Due 07/02/96 4,199
4,000,000 Merrill Lynch-5.33%
Due 07/01/96 4,000
5,500,000 Progess Capital-5.381%
Due 07/12/96 5,491
4,000,000 Progress Capital-5.40%
Due 07/15/96 3,992
3,000,000 Progess Capital-5.40%
Due 07/16/96 2,993
Total Commercial Paper 49,150
Total Short-Term Investments 51,222
Total Investments-106.2%
(Cost $295,716)(a) 326,313
Other Assets Less Liabilities-(6.2)% (18,932)
Net Assets-100% $307,381
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $40,820 and an unrealized depreciation is
$10,223, resulting in net unrealized appreciation of $30,597 (in
thousands).
* Non-income producing security
<page11>
Schedule of Investments
June 30, 1996
(unaudited)
Monetta Mid-Cap Equity Fund
<TABLE>
<CAPTION>
Shares or Quoted Market Value
Principal Amount (In Thousands)
COMMON STOCKS - 81.5%
<S> <C>
Consumer Related-22.1% $3,933
Food Processing-3.0%
*10,000 Smithfield Foods, Inc. $252
12,000 Whitman Corp. 290
542
Retail Manufacturers/Distribution-7.9%
*6,000 Autozone, Inc. 208
6,000 Avery-Dennison Corp. 329
8,000 Black & Decker Corp. 309
8,000 Newell Company 245
*6,000 Nine West 307
1,398
Recreation & Entertainment-3.9%
*10,000 Coleman Co., Inc. 424
*5,000 Mirage Resorts, Inc. 270
694
Restaurants & Lodging-1.5%
*10,000 Planet Hollywood 270
Retail Trades-4.1%
*12,000 Safeway, Inc. 396
10,000 TJX Companies, Inc. 337
733
Miscellaneous Services-1.7%
*10,000 U.S.S Waste Service 296
Financial Related-15.6% $2,770
Financial Services-15.6%
4,300 AON Corp. $218
4,400 Associates First Cap. Corp. 166
5,000 Compass Bancorp. 164
3,500 Crestar Financial Corp. 187
*15,500 Dime Bancorp, Inc. 195
4,050 Fifth Third Bancorp 219
12,000 First Tennessee National 368
10,000 Green Tree Financial 312
10,000 Greenpoint Financial Corp. 282
5,000 PHH Corp. 285
10,000 Roosevelt Financial 192
6,000 Union Planters Corp. 182
2,770
Industrial Related-30.7% $5,456
Energy Resources & Services-7.1%
5,000 Air Products & Chemicals $289
*1,600 Belco Oil & Gas Corp. 57
*8,000 Ensco International 260
*6,000 Input/Output, Inc. 194
4,000 Kerr McGee Corp. 244
5,000 Tidewater, Inc. 219
1,263
Housing-1.4%
12,000 Oakwood Homes 248
Industrial/Electronics Products-18.1%
18,000 AMETEK, Inc. 392
10,000 Applied Power, Inc. 280
*4,300 Berg Electronics 102
3,000 Consolidated Papers 156
10,000 Danaher Corp. 435
7,000 Harnischfeger Ind., Inc. 233
<page12>
2,625 Molex, Inc. 83
6,000 Precision Castparts Corp. 258
6,000 Sigma-Aldrich 321
7,000 Sundstrand Corp. 256
14,400 Trimas Corp. 337
7,000 York International Corp. 362
3,215
Mining & Mineral Resources-2.0%
9,600 IMC Global, Inc. 361
Transportation-2.1%
*18,000 Knight Transportation, Inc. 369
Medical Related-5.0% $886
Pharmaceuticals-2.6%
*4,000 Elan Corp. PLC-ADR $229
*6,000 Watson Pharmaceutical 227
456
Physician Services-2.4%
*8,000 Healthsouth Corp. 288
*6,000 Value Health 142
430
Technology Related-8.0% $1,424
Computer Software-1.1%
*4,000 Ceridian Corp. $202
Telecommunications Services & Equip.-6.9%
*4,400 ADC Telecom 198
*3,000 Cascade Communications 204
*3,000 Tellabs 201
*4,000 U.S. Robotics Corp. 342
*5,000 Worldcom, Inc. 277
1,222
Total Common Stocks
(Cost $12,961)(a) 14,469
Variable Demand Notes-7.2%
639,000 Eli Lilly Demand 639
642,500 Warner Lambert 642
Total Demand Notes 1,281
Commercial Paper-8.2%
750,000 Merrill Lynch-5.40%
Due 07/12/96 749
700,000 Progress Capital-5.40%
Due 07/15/96 698
Total Commercial Paper 1,447
Total Short-Term Investments 2,728
Total Investments-96.8%
(Cost $15,689)(a) 17,197
Other Assets Less Liabilities-3.2% 576
Net Assets-100% 17,773
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $1,805 and aggregate gross unrealized
depreciation is $297, resulting in net unrealized appreciation of
$1,508(in thousands).
*Non-income producing security
<page13>
Schedule of Investments
June 30, 1996
(unaudited)
Monetta Large-Cap Equity Fund
<TABLE>
<CAPTION>
Shares or Quoted Market Value
Principal Amount (In Thousands)
COMMON STOCKS - 85.0%
<S> <C>
Consumer Related-12.0% $162
Retail Trades-11.8%
1,200 Gap, Inc. $39
800 Home Depot, Inc. 43
*1,200 Safeway, Inc. 40
*100 Saks Holding, Inc. 3
700 Sears 34
159
Miscellaneous Services-0.2%
*100 Vincam Group, Inc. 3
Financial Related-19.3% $260
Financial Services-19.3%
400 Associates First Cap. Corp. $15
500 Chase Manhatten Corp. 35
600 Fifth Third Bancorp 32
600 First Data Corp. 48
800 Fleet Financial Group 35
600 Household International 46
1,400 Norwest Corp. 49
260
Industrial Related-10.0% $135
Industrial/Electronics Products-4.7%
*500 Berg Electronics $12
600 Illinois Tool Works 41
100 United Technologies Corp. 11
64
Energy Resources & Services-5.3%
500 Air Products & Chemicals 29
500 Schlumberger Ltd. 42
71
Medical Related-13.2% $178
Pharmaceuticals-10.5%
*400 Amgen, Inc. $21
800 Johnson & Johnson 40
600 Pfizer, Inc. 43
600 Schering-Plough 38
142
Physician Services-2.7%
*1,000 Healthsouth Corp. 36
Technology Related-30.5% $411
Computers & Office Equipment-2.1%
*500 Sun Microsystems, Inc. $29
Computer Software-9.8%
500 Computer Assoc. Int'l, Inc. 36
*400 Microsoft Corp. 48
900 Electronic Data System Corp. 48
132
Semiconductors-3.3%
600 Intel Corp. 44
<page14>
Telecommunications Svcs & Equip-15.3%
*800 Cisco Systems, Inc. 45
800 Northern Telecom Ltd. 44
*600 U.S. Robotics Corp. 51
*1,200 Worldcom, Inc. 66
206
Total Common Stocks
(Cost $1,018)(a) 1,146
Variable Demand Notes-7.4%
55,000 American Family 55
45,300 Eli Lilly 45
Total Demand Notes 100
Total Investments-92.4%
(Cost $1,118)(a) 1,246
Other Assets Less Liabilities-7.6% 103
Net Assets-100% $1,349
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $135 and aggregate gross unrealized
depreciation is $7, resulting in net unrealized appreciation of $128(in
thousands).
*Non-income producing security
Schedule of Investments
June 30, 1996
(unaudited)
Monetta Balanced Fund
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted Market Value
Principal Amount (In Thousands)
COMMON STOCKS - 64.1%
<S> <C>
Consumer Related-18.2% $105
Recreation & Entertainment-2.2%
600 Harveys Casinos Resorts $13
Restaurants & Lodging-3.1%
700 CKE Restaurants, Inc. 18
Retail Manufactures/Distribution-3.3%
200 Avery-Dennison Corp. 11
200 Black & Decker Corp. 8
19
Retail Trades-8.9%
200 Gap, Inc. 7
200 Home Depot, Inc. 11
*400 Safeway, Inc. 13
*100 Saks Holding, Inc. 3
500 TJX Companies, Inc. 17
51
Miscellaneous Services-0.7%
*100 ICT Group, Inc. 2
*100 Vincam Group, Inc. 2
4
Financial Related -10.6% $61
Financial Services-10.6%
200 Associates First Cap. Corp. $8
200 First Data Corp. 16
<page15>
*600 Dime Bancorp, Inc. 8
400 First Tennessee 12
200 Green Tree Financial 6
400 Greenpoint Financial Corp. 11
61
Industrial Related-8.7% $50
Energy Resources & Services-5.4%
*100 Belco Oil & Gas Corp. $4
*400 Ensco International 13
100 Kerr McGee Corp. 6
100 Schlumberger Ltd. 8
31
Industrial/Electronics Products-3.3%
*200 Berg Electronics 5
100 Illinois Tool Works 7
200 Sundstrand Corp. 7
19
Medical Related-12.7% $73
Pharmaceuticals-6.8%
*200 Amgen, Inc. $11
200 Pfizer, Inc. 14
*400 Qiagen N.V. 6
*200 Watson Pharmaceutical 8
39
Physician Services-4.2%
*400 American Oncology Res. 8
*300 Healthsouth Corp. 11
*200 Value Health 5
24
Medical Technology-1.7%
*200 Coherent, Inc. 10
Technology Related-13.9% $80
Semiconductors-2.6%
200 Intel Corp. $15
Computer Software-2.4%
*100 Aspect Developement 2
*100 Microsoft Corp. 12
14
Telecommunications Services & Equip.-8.9%
*200 Cisco Systems, Inc. 11
*200 Premysis Comm., Inc. 12
*100 Shiva, Corp. 8
*100 Verilink, Corp. 3
*300 Worldcom, Inc. 17
51
Total Common Stocks
(Cost $329)(a) 369
U.S. Treasury Notes-20.7%
40,000 6.00% Due 05/31/98 40
40,000 6.00% Due 10/15/99 40
40,000 5.75% Due 10/31/00 39
119
Variable Demand Notes-14.9%
25,000 American Family 25
21,200 Eli Lilly 21
24,600 Southwest Bell 25
15,600 Warner Lambert 15
Total Demand Notes 86
Total Investments-99.7%
(Cost $534)(a) 574
Other Assets Less Liabilities-0.3% 2
Net Assets-100% $576
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $47 and aggregate gross unrealized
depreciation is $7 resulting in net unrealized appreciation of $40 (in
thousands).
*Non-income producing security
<page16>
Schedule of Investments
June 30, 1996
(In Thousands)
(Unaudited)
Monetta Intermediate Bond Fund
<TABLE>
<CAPTION>
Shares or Quoted Market Value
Principal Amount (In Thousands)
<S> <C>
Treasury Notes-47.9%
300,000 6.25% Due 01/31/97 $301
200,000 5.50% Due 04/15/00 194
100,000 7.50% Due 11/15/01 105
200,000 6.37% Due 08/15/02 198
200,000 5.75% Due 08/15/03 190
200,000 5.87% Due 02/15/04 191
200,000 6.50% Due 05/15/05 197
200,000 6.50% Due 08/15/05 197
200,000 5.63% Due 02/15/06 186
1,759
Government Agency-1.1%
40,000 Sheboygan, WI TIF#6
8.25% Due 03/15/03 41
Corporate Bond-27.3%
100,000 Delta Airlines, 7.73%
Due 05/14/97 101
50,000 American Airlines, 8.70%
Due 01/15/98 51
50,000 Salomon, Inc., 9.37%
Due 04/15/98 52
100,000 Kroger Co., 9.00%
Due 08/15/99 100
100,000 Chase Manhatten Corp., 8.80%
Due 02/01/00 102
50,000 ADT Operations, 8.25%
Due 08/01/00 52
50,000 American Standard, 9.87%
Due 06/01/01 51
100,000 Harrah's Jazz, 14.25%
Due 11/15/01(b) 49
50,000 Dayton-Hudson, 9.75%
Due 07/01/02 56
100,000 IBM Corp., 7.25%
Due 11/01/02 102
100,000 RJR Nabisco, Inc., 8.62%
Due 12/01/02 101
100,000 Webb, Del E., 9.75%
Due 03/01/03 97
100,000 Salomon, Inc., 6.75%
Due 01/15/06 91
1,005
Federal Home Bank Loan-2.6%
100,000 6.44% Due 11/28/05 96
Mortgage Obligations-0.5%
21,177 GNMA, 8.50%, Due 07/15/21 18
Closed-End Bond Fund - 1.0%
4,500 Putman Master Income Trust 36
Demand Notes-17.2%
Eli Lilly - 4.98% 158
General Mills - 5.14% 151
Pitney Bowes - 5.14% 18
Warner Lambert - 5.12% 173
Southwest Bell - 5.12% 131
631
Total Investments-97.6%
(Cost $3,708)(a) 3,586
Other Assets Less Liabilities-2.4% 89
Net Assets-100% $3,675
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $5 and aggregate gross unrealized depreciation
is $127, resulting in net unrealized depreciation of $122 (in thousands).
(b) Harrah's Jazz filed a voluntary bankruptcy petition under Chapter 11
on November 22. Therefore the Fund ceased accruing interest on that
date. Harrah's Jazz filed a reorganization plan on April 3, 1996.
<page17>
Schedule of Investments
June 30, 1996
(In Thousands)
(Unaudited)
Monetta Government Money Market Fund
<TABLE>
<CAPTION>
Shares or Quoted Market Value
Principal Amount (In Thousands)
<S> <C>
GOVERNMENT OBLIGATIONS - 63.8%
U. S. Treasury Bills - 63.8%
1,300 Due 7/07/96 $1,299
1,250 Due 8/22/96 1,241
645 Due 11/14/96 633
450 Due 4/03/97 432
3,605
GOVERNMENT AGENCIES - 35.5%
Federal Farm Credit Discount Note-1.6%
90 Due 10/21/96 89
Federal Home Loan Bank Discount Note-23.8%
500 Due 07/18/96 499
160 Due 07/24/96 160
240 Due 07/26/96 239
100 Due 08/02/96 99
355 Due 10/16/96 349
1,346
Federal National Mortgage Association Discount Notes-10.1%
400 Due 7/08/96 399
175 Due 8/16/96 174
573
Total Investments-99.3%(a) 5,613
Other Assets Less Liabilities-0.7% 39
Net Assets-100% $5,652
</TABLE>
(a) Cost is identical for book and tax purposes.
<page18>
Notes to Financial Statements
June 30, 1996
1.SIGNIFICANT ACCOUNTING POLICIES:
Monetta Fund, Inc. ("Monetta Fund") is an open-end diversified
management investment company registered under the Investment Company Act
of 1940, as amended. The primary objective of Monetta Fund is capital
appreciation by investing primarily in equity securities believed to have
growth potential. The Fund generally invests in companies with a market
capitalization range of $50 million to $1 billion.
Monetta Trust ("the Trust") is an open-end diversified management
investment company registered under the Investment Company Act of 1940,
as amended. The following funds are series of the Trust:
Mid-Cap Equity Fund. The primary objective of this fund is long-term
capital growth by investing in common stocks believed to have above
average growth potential. The Fund tipically invests in companies within
a market capitalization range of $1 billion to $5 billion.
Large-Cap Equity Fund. The primary objective of this fund is to seek
long-term capital growth by investing in common stocks believed to have
above average growth potential. The Fund tipically invests in companies
with market capitalization of greater than $5 billion.
Balanced Fund. The objective of this fund is to seek a favorable total
rate of return through capital appreciation and current income consistent
with preservation of capital, derived from investing in a portfolio of
equity and fixed income securities.
Intermediate Bond Fund. The objective of this fund is to seek high
current income consistent with the preservation of capital by investing
primarily in marketable debt securities.
Government Money Market Fund. The primary objective of this fund is to
seek maximum current income consistent with safety of capital and
maintenance of liquidity. The Fund invests in U. S. Government
securities maturing in thirteen months or less from the date of purchase
and repurchase agreements for U. S. Government securities. U. S.
Government securities include securities issued or guaranteed by the U.S.
Government or by its agencies or instrumentalities.
Monetta Family of Funds is comprised of Monetta Fund, Inc. and each of
the Trust Series and are collectively referred to as the "Funds". The
following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles:
(a)Securities Valuation
Investments are stated at market value based on the last reported sale
price on national securities exchanges, or the NASDAQ Market, on the last
business day of the period. Listed securities and securities traded on
the over-the-counter markets that did not trade on the last business day
are valued at the mean between the quoted bid and asked prices. Short-
term securities, including all securities held by the Government Money
Market Fund, are stated at amortized cost, which is substantially
equivalent to market value.
<page19>
(b)Federal Income Taxes
It is each Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Accordingly, no provision for federal income taxes is required.
The Funds intend to utilize provisions of the federal income tax laws
which allow them to carry a realized capital loss forward for eight years
following the year of the loss and offset such losses against any future
realized capital gains. At December 31, 1995, the Large-Cap Fund had an
accumulated capital loss carry forward for tax purposes of $1,591 which
will expire on December 31, 2003. Net realized losses of the funds may
differ for financial statements and tax purposes because of the deferral
of post October 31 losses for tax purposes.
(c)General
Security transactions are accounted for on a trade date basis. Daily
realized gains and losses from security transactions are reported on the
first-in, first-out cost basis. Interest income is recorded daily on the
accrual basis and dividend income on the ex-dividend date.
(d)Distributions of incomes and gains
Distributions to shareholders are recorded by the Funds (except for the
Government Money Market Fund) on the ex-dividend date. The Government
Money Market Fund declares dividends daily and automatically reinvests
such dividends daily. Due to inherent differences in the
characterization of short-term capital gains under generally accepted
accounting principles and for federal income tax purposes, the amount of
distributable net investment income for book and federal income tax
purposes may differ. These differences are permanent in nature, and may
result in distributions in excess of book basis net investment income for
certain periods.
2.RELATED PARTIES:
Robert S. Bacarella is an officer and director of the Funds and also an
officer, director and majority shareholder of the investment adviser,
Monetta Financial Services, Inc. "Adviser". For six months ended June
30, 1996, remuneration required to be paid to all interested director or
trustee has been absorbed by the Adviser. Fees paid to outside Directors
or Trustees have been absorbed by the respective funds.
Each Fund pays an investment advisory fee to the Adviser, based on that
Fund's individual net assets, payable monthly at the annual rate of 1%
for Monetta Fund, Mid-Cap and Large-Cap Equity Funds; 0.65% for Balanced
Fund; 0.60% for Intermediate Bond Fund and 0.35% for the Government Money
Market Fund. From these fees the Adviser pays all the Fund's ordinary
operating expenses other than the advisory fee and charges of the Fund's
custodian and transfer agent. Investment advisory fees waived through
June 30, 1996, for the Intermediate Bond Fund were $5,569 of total fees
of $11,138. Investment Advisory Fees waived through June 30, 1996 for
the Government Money Market Fund were $9,239. Additionally, brokerage
commissions of $7,375 were paid by the Monetta Fund to Monetta
Brokerage, Inc. during the six months ended June 30, 1996.
<page20>
Notes to Financial Statements
June 30, 1996
<TABLE>
<CAPTION>
Shares Owned by the Advisor
Shares %of Fund
<S> <C> <C>
Mid-Cap Fund 7,347 0.5%
Large-Cap Fund 10,00 8.8%
Balanced Fund 28,759 59.1%
Intermediate Bond Fund 71,264 19.5%
Government Money Market Fund 1,289,985 22.8%
</TABLE>
3. CAPITAL STOCK AND SHARE UNITS:
There are 100,000,000 shares of $0.01 par value capital stock
authorized for Monetta Fund. There is an unlimited number of no par
value shares of beneficial interest authorized for each series of the
Trust.
<TABLE>
<CAPTION>
Monetta Mid-Cap Large-Cap
(In Thousands) Fund Equity Fund Equity Fund
<C> <C> <C> <C>
1995 Beginning shares 25,140 962 -
Shares sold 1,400 161 101
Shares issued upon
dividend reinvestment 3,779 249 (a)
Shares redeemed (7,054) (184) (a)
Net increase (decrease) in
shares outstanding (1,875) 226 101
1996 Beginning shares 23,265 1,188 101
Shares sold 598 298 25
Shares issued upon
dividend reinvestment 0 0 0
Shares redeemed (5,023) (145) (13)
Net increase (decrease) in
shares outstanding (4,425) 153 12
Ending Shares 18,840 1,341 113
</TABLE>
<TABLE>
<CAPTION>
Balanced Intermediate Government
(In Thousands) Fund Bond Fund Money Market
<C> <C> <C> <C>
1995 Beginning shares - 313 3,315
Shares sold 44 69 4,068
Shares issued upon
dividend reinvestment (a) 22 196
Shares redeemed (5) (54) (3,186)
Net increase (decrease) in
shares outstanding 39 37 1,078
1996 Beginning shares 39 350 4,393
Shares sold 20 32 4,629
Shares issued upon
dividend reinvestment (a) 9 120
Shares redeemed (10) (26) (3,490)
Net increase (decrease) in
shares outstanding 10 15 1,259
Ending Shares 49 365 5,652
</TABLE>
(a) Rounds to less than 1,000 shares.
4.PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities for the six
months ending June 30, 1996,excluding short-term securities were:
Monetta Fund $333,592,436 and $380,773,929; Mid-Cap Fund $8,199,750 and
$8,173,989; Large-Cap Fund $1,173,626 and $1,134,221; Balanced Fund
$598,884 and $570,083; and Intermediate Bond Fund $721,450 and $677,209.
<page21>
Notes to Financial Statements
June 30, 1996
5.Financial Higlights
Monetta Fund
Financial highlights for Monetta Fund for a share of capital stock
outstanding throughout the period is presented below:
<TABLE>
<CAPTION>
Six Months
Ended**
6/30/96 1995 1994
<S> <C> <C> <C>
Net asset value at
beginning of period $15.591 $14.515 $15.539
Net investment income(loss) (.040) .029 (.26)
Net realized and unrealized
gain(loss) on investments .765 4.075 (.938)
Total from investment operations: .725 4.104 (.964)
Less:
Distributions from net
investment income 0 (.028) 0
Distribution in excess of
net investment income 0 (3.000) (.060)
Distributions from net realized
gains on securities 0 0 0
Total distributions 0 (3.028) (.060)
Net asset value at end of period $16.316 $15.591 $14.515
Total return 4.7% 28.0% (6.21)%
Ratio to average net asset Expenses* 1.38% 1.36% 1.35%
Net investment income* (.22)% .18% (.15)%
Portfolio turnover 116.6% 272.0% 191.27%
Net assets (in millions) $307.4 $362.7 $364.9
</TABLE>
<TABLE>
<CAPTION>
1993 1992 1991
<S> <C> <C> <C>
Net asset value at
beginning of period $15.992 $15.731 $10.963
Net investment income(loss) (.028) .006 .081
Net realized and unrealized
gain(loss) on investments .105 .855 6.037
Total from investment operations: .077 .861 6.118
Less:
Distributions from net
investment income 0 (.006) (.081)
Distribution in excess of
net investment income (.475) (.594) (1.208)
Distributions from net realized
gains on securities (.055) 0 (.061)
Total distributions (.530) (.600) (1.350)
Net asset value at end of period $15.539 $15.992 $15.731
Total return 0.49% 5.49% 55.90%
Ratio to average net asset Expenses* 1.38% 1.34% 1.42%
Net investment income* (.19)% .16% .93%
Portfolio turnover 226.85% 126.60% 153.80%
Net assets (in millions) $524.3 $408.0 $57.1
</TABLE>
<TABLE>
<CAPTION>
1990 1989 1988
<S> <C> <C> <C>
Net asset value at
beginning of period $10.441 $9.933 $9.649
Net investment income(loss) .103 .219 .106
Net realized and unrealized
gain(loss) on investments 1.106 1.274 2.158
Total from investment operations: 1.209 1.493 2.264
Less:
Distributions from net
investment income (.103) (.219) (.106)
Distribution in excess of
net investment income (.584) (.766) (1.874)
Distributions from net realized
gains on securities 0 0 0
Total distributions (.687) (.985) (1.980)
Net asset value at end of period $10.963 $10.441 $9.933
Total return 11.37% 15.20% 23.07%
Ratio to average net asset Expenses* 1.50% 1.57% 1.50%
Net investment income* 1.09% 2.18% .96%
Portfolio turnover 206.51% 258.42% 170.43%
Net assets (in millions) $6.1 $3.5 $2.6
</TABLE>
<TABLE>
<CAPTION>
5/06/86
Through
1987 12/31/86
<S> <C> <C>
Net asset value at
beginning of period $9.670 $10.000
Net investment income(loss) .113 .115
Net realized and unrealized
gain(loss) on investments .016 .(.335)
Total from investment operations: .129 (.220)
Less:
Distributions from net
investment income (.150) (.110)
Distribution in excess of
net investment income 0 0
Distributions from net realized
gains on securities 0 0
Total distributions (.150) (.110)
Net asset value at end of period $9.649 $9.670
Total return 1.54% (2.20)%
Ratio to average net asset Expenses* 2.31% 1.27%
Net investment income* 1.33% 2.45%
Portfolio turnover 333.47% 80.02%
Net assets (in millions) $2.6 $1.9
</TABLE>
* If certain expenses had not been assumed by the investment advisor in 1989,
the ratios of expenses and net investment income to average net assets would
have been 1.83% and 1.92%, respectively.
**Unaudited
Per share ratios are calculated using the weighted average number of
shares outstanding during the period.
<page23>
Notes to Financial Statements
June 30, 1996
Financial highlights for each Fund of the Trust for a share outstanding
througout the period is presented below:
<TABLE>
<CAPTION>
Mid-Cap Equity Fund
Six Months 3/1/93
Ended** Through
6/30/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C>
Net asset value at
beginning of period* $11.962 $12.199 $12.537 $10.000
Net investment income 0.021 0.059 0.071 0.0006
Net realized and unrealized
gain (loss) on investment 1.274 2.874 0.193 3.531
Total from investment operations 1.295 2.933 0.264 3.537
Less:
Distributions from net
investment income 0 (0.050) (0.069) (0.006)
Distributions in excess of
net investment income 0 (2.990) (0.533) (0.994)
Distributions from net realized
gains on securities 0 (0.130) 0 0
Total distributions 0 (3.170) (0.602) (1.000)
Net asset value at end $13.257 $11.962 $12.199 $12.537
of period
Total return* 10.87% 24.54% 2.17% 35.40%
Ratios to average net assets:
Expenses* 1.22% 1.25% 1.30% 1.12%
Net investment income* 0.16% 1.44% 0.57% 0.07%
Portfolio turnover 58.08% 254.35% 209.97% 128.12%
Net assets (in thousands) $17,773 $14,216 $11,736 $9,841
</TABLE>
<page24>
<TABLE>
<CAPTION>
Large-Cap Equity Fund Balanced Fund
Six Months 9/1/95 Six Months 9/1/95
Ended** Through Ended** Through
6/30/96 12/31/95 6/30/96 12/31/95
<S> <C> <C> <C> <C>
Net asset value at
beginning of period* $10.571 $10.00 $10.605 $10.000
Net investment income 0.029 0.005 0.074 0.009
Net realized and unrealized
gain (loss) on investment 1.317 0.570 1.227 0.602
Total from investment operations 1.346 0.575 1.301 0.611
Less:
Distributions from net
investment income 0 (0.004) (0.065) (0.004)
Distributions in excess of
net investment income 0 0 0 (0.002)
Distributions from net realized
gains on securities 0 0 0 0
Total distributions 0 (0.004) (0.065) (0.006)
Net asset value at end $11.917 $10.571 $11.841 $10.605
of period
Total return* 12.77% 5.74% 12.23% 6.16%
Ratios to average net assets:
Expenses* 1.46% 0.69% 1.42% 0.91%
Net investment income* 0.26% 0.05% 0.66% 0.08%
Portfolio turnover 107.6% 38.20% 107.91% 54.78%
Net assets (in thousands) $1,349 $1,072 $576 $410
</TABLE>
<TABLE>
<CAPTION>
Intermediate Bond Fund
Six Months 3/5/93
Ended** Through
6/30/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C>
Net asset value at
beginning of period* $10.244 $9.624 $10.345 $10.000
Net investment income 0.287 0.655 0.589 0.357
Net realized and unrealized
gain (loss) on investment (0.175) 0.740 (0.690) 0.447
Total from investment operations 0.112 1.395 (0.101) 0.804
Less:
Distributions from net
investment income (0.280) (0.655) (0.580) (0.357)
Distributions in excess of
net investment income 0 (0.120) (0.040) (0.102)
Distributions from net realized
gains on securities 0 0 0 0
Total distributions (0.280) (0.775) (0.620) (0.459)
Net asset value at end $10.076 $10.244 $9.624 $10.345
of period
Total return* 1.20% 14.84% (1.04)% 8.17%
Ratios to average net assets:
Expenses* 0.53% 0.27% 0.28% 0.28%
Net investment income* 2.83% 5.94% 5.94% 4.13%
Portfolio turnover 22.64% 75.07% 94.48% 32.26%
Net assets (in thousands) $3,675 $3,589 $3,010 $2,959
</TABLE>
<TABLE>
<CAPTION>
Government Money Market Fund
Six Months 3/1/93
Ended** Through
6/30/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C>
Net asset value at
beginning of period* $1.000 $1.000 $1.000 $1.000
Net investment income 0.024 0.059 0.040 0.023
Net realized and unrealized
gain (loss) on investment 0 0 0 0
Total from investment operations 0.024 0.059 0.040 0.023
Less:
Distributions from net
investment income (0.024) (0.059) (0.040) (0.023)
Distributions in excess of
net investment income 0 0 0 0
Distributions from net realized
gains on securities 0 0 0 0
Total distributions (0.024) (0.059) (0.040) (0.023)
Net asset value at end $1.000 $1.000 $1.000 $1.000
of period
Total return* 2.47% 5.87% 4.04% 2.21%
Ratios to average net assets:
Expenses* 0.32% 0.07% 0.0% 0.03%
Net investment income* 2.43% 5.69% 4.04% 2.32%
Portfolio turnover N/A N/A N/A N/A
Net assets (in thousands) $5,652 $4,393 $3,315 $1,859
</TABLE>
* Ratios and total return for the year of inception are calculated
from the date of inception to the end of the period.
**If certain investment advisory fees and charges of the Trust's
custodian and transfer agent had not been assumed by the investment
advisor, the ratios of expenses would have been 0.83%, 0.75, 0.88% and
0.75% for six months ended June 30, 1996, 1995, 1994 and 1993
respectivley. For the Government Money Market Fund, expenses would
have been 0.67%, 0.59%, 0.66% and 0.69%, for six months ended June 30,
1996, 1995, 1994 and 1993 respectively. For the Intermediate Bond
Fund, net investment income wuld have been 2.69%, 5.46%, 5.34% and
3.66% for six months ended June 30, 1996, 1995, 1994 and 1993
respectively. For the Government Money Market Fund, the investment
income would have been 2.26%, 5.17%, 3.39% and 1.66% for six months
ended June 30, 1996, 1995, 1994 and 1993 respectively.
The per share ratios are calculated using the weighted average number
of shares outstanding during the period.
***Unaudited
<page25>
Statements of Assets and Liabilities(Unaudited)
June 30, 1996
(In Thousands)
<TABLE>
<CAPTION>
Mid-Cap
Monetta Equity
Fund Fund
<S> <C> <C>
Assets:
Investments at market value (cost:
$295,716;$15,689)(Note 1) $326,313 $17,197
Cash 0 0
Interest and dividends receivable 29 19
Receivable for securities sold 7,482 609
Total assets 333,824 17,856
Liabilities:
Payables:
Custodial bank 192 0
Invesment advisory fees (Note2) 259 14
Investments purchased 25,794 64
Accrued expenses 198 5
Total liabilites 26,443 83
Net assets $307,381 $17,773
Analysis of net assets:
Paid in capital(b) 284,312 16,234
Accumulated undistributed net
investment income(loss) (833) 25
Accumulated undistributed net
realized gain(loss) (6,395) 6
Net realized appreciation
(depreciation) on investment 30,597 1,508
Net assets $307,381 $17,773
Net asset value, offering price, and redemption price
per share(18,840 shares of capital stock and 1,340.6;
shares beneficial interest outstanding
respectively) $16.32 $13.26
</TABLE>
<page26>
<TABLE>
<CAPTION>
Large-Cap Balanced
Fund Fund
<S> <C> <C>
Assets:
Investments at market value (cost:
$1,118;$534)(Note 1) $1,246 $574
Cash 25 (a)
Interest and dividends receivable 2 2
Receivable for securities sold 83 10
Total assets 1,356 586
Liabilities:
Payables:
Custodial bank 0 0
Invesment advisory fees (Note2) 1 (a)
Investments purchased 5 9
Accrued expenses 1 1
Total liabilites 7 10
Net assets $1,349 $576
Analysis of net assets:
Paid in capital(b) 1,147 505
Accumulated undistributed net
investment income(loss) 3 (a)
Accumulated undistributed net
realized gain(loss) 71 31
Net realized appreciation
(depreciation) on investment 128 40
Net assets $1,349 $576
Net asset value, offering price, and redemption price
per share(113.2; shares of capital stock and 48.63;
shares beneficial interest outstanding
respectively) $11.92 $11.84
</TABLE>
<TABLE>
<CAPTION>
Intermediate Government
Bond Money
Fund Market Fund
<S> <C> <C>
Assets:
Investments at market value (cost:
$3,708;$5,614)(Note1) $3,586 $5,614
Cash 22 43
Interest and dividends receivable 65 0
Receivable for securities sold 19 0
Total assets 3,692 5,657
Liabilities:
Payables:
Custodial bank 0 0
Invesment advisory fees (Note2) 1 0
Investments purchased 14 0
Accrued expenses 2 5
Total liabilites 17 5
Net assets $3,675 $5,652
Analysis of net assets:
Paid in capital(b) 3,729 5,652
Accumulated undistributed net
investment income(loss) 3 0
Accumulated undistributed net
realized gain(loss) 65 0
Net realized appreciation
(depreciation) on investment (122) 0
Net assets $3,675 $5,652
Net asset value, offering price, and redemption price
per share(364.7 shares of capital stock and 5,652
shares beneficial interest outstanding
respectively) $10.08 $1.00
</TABLE>
See accompanying notes to financial statements
(a)Rounds to less than $1,000
(b)Amount for Monetta Fund represents $188 of $0.01 par value and $281,124 of
additional capital, 100 million shares are authorized. Each fund of Monetta
Trust has an unlimited number of no par value shares of beneficial.
<page27>
Statements of Operations(Unaudited)
Six Months Ended June 30, 1996
(In Thousands)
<TABLE>
<CAPTION>
Mid-Cap
Monetta Equity
Fund Fund
<S> <C> <C>
Investment income and expenses:
Investment income:
Interest $1,305 $41
Dividends 115 77
Miscellaneous income 5 1
Total investment income 1,425 119
Expenses:
Investment advisory fee (Note 2) 1,651 77
Custodial fees and bank cash
management fee 45 6
Transfer and shareholder
servicing agent fee 562 11
Other 0 0
Total expenses 2,258 94
Expenses waived and reimbursed 0 0
Expenses net of waived and
reimbursed expenes 2,258 94
Net investment income (833) 25
Realized and unrealized gain(loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 351,132 8,174
Cost of securities sold 356,766 7,914
Net realized gain (loss) on investments (5,634) 260
Net unrealized appreciation (depreciation) on investments:
Beginning of period 9,405 293
End of period 30,597 1,508
Net change in net unrealized appreciation/depreciation
on investments during the period 21,192 1,215
Net realized and unrealized gain (loss)
on investments 15,558 1,475
Net increase (decrease) in net assets
from operations $14,725 $1,500
</TABLE>
<page28>
<TABLE>
<CAPTION>
Large-Cap Balanced
Fund Fund
<S> <C> <C>
Investment income and expenses:
Investment income:
Interest $6 $6
Dividends 6 1
Miscellaneous income 0 0
Total investment income 12 7
Expenses:
Investment advisory fee (Note 2) 6 2
Custodial fees and bank cash
management fee 2 1
Transfer and shareholder
servicing agent fee 1 1
Other (a) 0
Total expenses 9 4
Expenses waived and reimbursed 0 0
Expenses net of waived and
reimbursed expenes 9 4
Net investment income 3 3
Realized and unrealized gain(loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 1,134 570
Cost of securities sold 1,055 535
Net realized gain (loss) on investments 79 35
Net unrealized appreciation (depreciation) on investments:
Beginning of period 63 21
End of period 128 40
Net change in net unrealized appreciation/depreciation
on investments during the period 65 19
Net realized and unrealized gain (loss)
on investments 144 54
Net increase (decrease) in net assets
from operations $147 $57
</TABLE>
<TABLE>
<CAPTION>
Intermediate Government
Bond Money
Fund Market Fund
<S> <C> <C>
Investment income and expenses:
Investment income:
Interest $114 $138
Dividends 2 0
Miscellaneous income (a) (a)
Total investment income 116 138
Expenses:
Investment advisory fee (Note 2) 11 9
Custodial fees and bank cash
management fee 2 2
Transfer and shareholder
servicing agent fee 2 7
Other 0 (a)
Total expenses 15 18
Expenses waived and reimbursed 5 9
Expenses net of waived and
reimbursed expenes 10 9
Net investment income 106 129
Realized and unrealized gain(loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 677 11,191
Cost of securities sold 629 11,191
Net realized gain (loss) on investments 48 0
Net unrealized appreciation (depreciation) on investments:
Beginning of period (9) 0
End of period (122) 0
Net change in net unrealized appreciation/depreciation
on investments during the period (113) 0
Net realized and unrealized gain (loss)
on investments (65) 0
Net increase (decrease) in net assets
from operations $41 $129
</TABLE>
See accompanying notes to financial statements
(a)Rounds to less than $1,000
<page29>
Statements of Changes in Net Assets
June 30, 1996 and December 31, 1995
(In Thousands)
<TABLE>
<CAPTION>
Monetta Fund Monetta Fund
Six Months* Year
Ended Ended
6/30/96 12/31/95
<S> <C> <C>
From investment activities:
Operations:
Net investment income $(833) $647
Net realized gain (loss) on investments (5,634) 61,662
Net change in net unrealized appreciation(depreciation)
on investments during the period 21,192 26,918
Net increase (decrease) in net assets
from operations 14,725 89,227
Distribution from net investment income 0 (647)
Distribution in excess of net
investment income 0 (59,578)
Distribution from net realized
gains on securities 0 0
Increase (decrease) in net assets from
investment activities 14,725 29,002
From capital transaction (Note 3):
Proceeds from shares sold 9,369 22,913
Net asset value of shares issued through
dividends reinvestment 0 59,595
Cost of shares repurchased (79,433) (113,702)
Increase (decrease) in net assets from captial
transactions (70,064) (31,194)
Total increase (decrease) in net assets (55,339) (2,192)
Net assets at beginning of period 362,720 364,912
Net assets at end of period $307,381 $362,720
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap Equity Fund
Six Months* Year
Ended Ended
6/30/96 12/31/95
<S> <C> <C>
From investment activities:
Operations:
Net investment income $25 $59
Net realized gain (loss) on investments 260 2,484
Net change in net unrealized appreciation(depreciation)
on investments during the period 1,215 316
Net increase (decrease) in net assets
from operations 1,500 2,859
Distribution from net investment income 0 (59)
Distribution in excess of net
investment income 0 (2,897)
Distribution from net realized
gains on securities 0 (19)
Increase (decrease) in net assets from
investment activities 1,500 (116)
From capital transaction (Note 3):
Proceeds from shares sold 3,908 2,203
Net asset value of shares issued through
dividends reinvestment 0 2,930
Cost of shares repurchased (1,851) (2,538)
Increase (decrease) in net assets from captial
transactions 2,057 2,595
Total increase (decrease) in net assets 3,557 2,479
Net assets at beginning of period 14,216 11,737
Net assets at end of period $17,773 $14,216
</TABLE>
<page30>
<TABLE>
<CAPTION>
Large-Cap Equity Fund
Six Months* Year
Ended Ended
6/30/96 12/31/95
<S> <C> <C>
From investment activities:
Operations:
Net investment income $3 $(a)
Net realized gain (loss) on investments 79 (8)
Net change in net unrealized appreciation(depreciation)
on investments during the period 65 63
Net increase (decrease) in net assets
from operations 147 55
Distribution from net investment income 0 (a)
Distribution in excess of net
investment income 0 0
Distribution from net realized
gains on securities 0 0
Increase (decrease) in net assets from
investment activities 147 55
From capital transaction (Note 3):
Proceeds from shares sold 285 1,019
Net asset value of shares issued through
dividends reinvestment 0 (a)
Cost of shares repurchased (155) (2)
Increase (decrease) in net assets from captial
transactions 130 1,017
Total increase (decrease) in net assets 277 1,072
Net assets at beginning of period 1,072 0
Net assets at end of period $1,349 $1,072
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund
Six Months* Year
Ended Ended
6/30/96 12/31/95
<S> <C> <C>
From investment activities:
Operations:
Net investment income $3 $(a)
Net realized gain (loss) on investments 35 (4)
Net change in net unrealized appreciation(depreciation)
on investments during the period 19 21
Net increase (decrease) in net assets
from operations 57 17
Distribution from net investment income (3) (a)
Distribution in excess of net
investment income 0 (a)
Distribution from net realized
gains on securities 0 0
Increase (decrease) in net assets from
investment activities 54 17
From capital transaction (Note 3):
Proceeds from shares sold 228 445
Net asset value of shares issued through
dividends reinvestment 3 (a)
Cost of shares repurchased (119) (52)
Increase (decrease) in net assets from captial
transactions 112 393
Total increase (decrease) in net assets 166 410
Net assets at beginning of period 410 0
Net assets at end of period $576 $410
</TABLE>
<TABLE>
<CAPTION>
Intermediate Bond Fund
Six Months* Year
Ended Ended
6/30/96 12/31/95
<S> <C> <C>
From investment activities:
Operations:
Net investment income $106 $213
Net realized gain (loss) on investments 48 83
Net change in net unrealized appreciation(depreciation)
on investments during the period (113) 156
Net increase (decrease) in net assets
from operations 41 452
Distribution from net investment income (103) (215)
Distribution in excess of net
investment income 0 (38)
Distribution from net realized
gains on securities 0 0
Increase (decrease) in net assets from
investment activities (62) 199
From capital transaction (Note 3):
Proceeds from shares sold 330 701
Net asset value of shares issued through
dividends reinvestment 86 229
Cost of shares repurchased (268) (550)
Increase (decrease) in net assets from captial
transactions 148 380
Total increase (decrease) in net assets 86 579
Net assets at beginning of period 3,589 3,010
Net assets at end of period $3,675 $3,589
</TABLE>
<TABLE>
<CAPTION>
Government Money Market Fund
Six Months* Year
Ended Ended
6/30/96 12/31/95
<S> <C> <C>
From investment activities:
Operations:
Net investment income $129 $173
Net realized gain (loss) on investments 0 (28)
Net change in net unrealized appreciation(depreciation)
on investments during the period 0 156
Net increase (decrease) in net assets
from operations 129 205
Distribution from net investment income (129) (205)
Distribution in excess of net
investment income 0 0
Distribution from net realized
gains on securities 0 0
Increase (decrease) in net assets from
investment activities 0 0
From capital transaction (Note 3):
Proceeds from shares sold 4,629 4,068
Net asset value of shares issued through
dividends reinvestment 120 196
Cost of shares repurchased (3,490) (3,186)
Increase (decrease) in net assets from captial
transactions 1,259 1,078
Total increase (decrease) in net assets 1,259 1,078
Net assets at beginning of period 4,393 3,315
Net assets at end of period $5,652 $4,393
See accompanying notes to financial statements
</TABLE>
*Unaudited
(a)Rounds to less than $1,000
<page31>
Semi-Annul Report
June 30,1996
Monetta Family of Fund
Monetta Fund, Inc.
Monetta Mid-Cap Euity Fund
Monetta Large-Cap Equity Fund
Monetta Balanced Fund
Monetta Intermediate Bond Fund
Monetta Government Money
Market Fund
Monetta Funds
1771-A South Naperville Road
Suite 207
Wheaton, Illinois 60187
1-800-MONETTA
