FAMILY OF FUNDS
DEAR FELLOW SHAREHOLDERS: JULY 16, 1997
I AM PLEASED TO REVIEW THE MONETTA FAMILY OF FUNDS SEMI-ANNUAL REPORT WHICH
COVERS THE SIX-MONTHS PERIOD ENDING JUNE 30, 1997. THE REPORT CONTAINS
COMPLETE FINANCIAL INFORMATION - INCLUDING A COMMENTARY ON EACH FUND AND LIST
OF HOLDINGS.
SINCE YEAR-END THE STOCK MARKET CONTINUED TO CLIMB TO NEW HIGHS. THE MOST
IMPORTANT DRIVING FACTOR FOR THE EQUITY MARKET WAS INCREASING EVIDENCE THAT THE
ECONOMY IS MODERATELY SLOWING AND THAT INFLATION WAS UNDER CONTROL. INTEREST
RATES REMAINED IN A NARROW TRADING RANGE AS THE FEDERAL RESERVE DID NOT
INCREASE ITS DISCOUNT RATE DURING THE SECOND QUARTER. YEAR-TO-DATE THE AVERAGE
EQUITY FUND WAS UP APPROXIMATELY 13%. THE LARGER CAPITALIZATION SECURITIES LED
THE ADVANCE AS THE DOW JONES INDUSTRIAL AVERAGE WAS UP APPROXIMATELY 19% WHILE
THE NASDAQ INDUSTRIAL INDEX LAGGED, POSTING AN AVERAGE RETURN OF 6.6%.
OVER THE PAST MONTH, SECONDARY AND SMALL CAPITALIZATION STOCKS HAVE
CONSIDERABLY OUTPERFORMED LARGE CAPITALIZATION STOCKS, A TREND THAT IS LIKELY
TO CONTINUE INTO THE SECOND HALF OF THE YEAR.
WE ARE VERY PLEASE WITH OUR FUNDS' SECOND QUARTER PERFORMANCE AND SIX MONTH
RESULTS.
* SMALL-CAP FUND PRODUCED AN EXCEPTIONAL TOTAL RETURN LAST QUARTER UP
24.6% AND SINCE INCEPTION (2/1/97) WAS UP 18.2%, WELL AHEAD OF ITS BENCHMARK
RETURN.
*. MONETTA FUND, MORE DIVERSIFIED THAN THE SMALL-CAP FUND, PRODUCED A
STRONG TOTAL RETURN FOR THE QUARTER, UP 20.5%, PROPELLING THE YEAR-TO-DATE
RETURN TO 11.8%, EXCEEDING ITS BENCHMARK RETURN.
* MID-CAP FUND DELIVERED A COMPETITIVE TOTAL RETURN OF 13.9% FOR THE
QUARTER AND A 13.4% RETURN SINCE YEAR END, ALSO EXCEEDING ITS BENCHMARK RETURN.
* LARGE-CAP FUND APPRECIATED 12.9% DURING THE QUARTER, INCREASING THE
YEAR-TO-DATE RETURN TO 15.3%. SINCE YEAR-END THE FUND WAS BELOW ITS BENCHMARK,
BUT IN THE TOP HALF OF ALL GROWTH FUNDS RANKED BY LIPPER ANALYTICAL SERVICES.
* BALANCED FUND POSTED A COMPETITIVE 9.6% TOTAL FUND RETURN DURING
THE QUARTER AND 9.5% SINCE YEAR-END. APPROXIMATELY 65% OF THE FUND IS INVESTED
IN EQUITIES WITH THE BALANCE IN BONDS. THE FUND RANKS IN THE UPPER QUARTILE OF
BALANCED FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES.
* INTERMEDIATE BOND FUND POSTED AN ABOVE AVERAGE QUARTERLY RETURN OF
3.4% INCREASING THE YEAR-TO-DATE RETURN TO 3.1%, ALSO AHEAD OF ITS RESPECTIVE
BENCHMARK.
* GOVERNMENT MONEY MARKET FUND CONTINUED TO MAINTAIN ITS HIGH LIPPER
ANALYTICAL SERVICES, INC RATING. SINCE YEAR END THE FUND'S TOTAL PORTFOLIO
RETURN WAS 2.49%. AT 6/30/97 THE FUND'S 7-DAY YIELD WAS 5.08%
INVESTMENT STRATEGY
THERE APPEARS TO BE AMPLE LIQUIDITY TO SUPPORT THE FINANCIAL MARKETS AS WELL AS
ECONOMIC GROWTH. CORPORATE PROFITS AND CASH FLOWS ARE AT RECORD LEVELS AND
GOVERNMENT DEMAND FOR DEBT IS DIMINISHING. MARKET VOLATILITY WILL BE USED TO
TRIM EXTENDED POSITIONS OR DOLLAR AVERAGE INTO EXISTING HOLDINGS. WE DO NOT
INTEND TO RAISE CASH (ON BALANCE) OR DISTURB CORE POSITIONS. WE ARE AVOIDING
HIGH-MULTIPLE OVEROWNED SECURITIES IN FAVOR OF COMPANIES SELLING AT A DISCOUNT
TO THEIR RESPECTIVE EARNINGS GROWTH RATE.
BEST PERSONAL REGARDS,
ROBERT S. BACARELLA
PRESIDENT AND FOUNDER
Page 1
<TABLE>
<CAPTION>
Table of Contents
Performance Highlights
<S> <C>
Monetta Fund 3
Monetta Small-Cap Equity Fund 4
Monetta Mid-Cap Equity Fund 5
Monetta Large-Cap Equity Fund 6
Monetta Balanced Fund 7
Monetta Intermediate Bond Fund 8
Monetta Government Money Market Fund 9
Schedule of Investments
Monetta Fund 10
Monetta Small-Cap Equity Fund 14
Monetta Mid-Cap Equity Fund 16
Monetta Large-Cap Equity Fund 18
Monetta Balanced Fund 19
Monetta Intermediate Bond Fund 22
Monetta Government Money Market Fund 23
Financial Statements
Statements of Assets and Liabilities 24
Statements of Operations 26
Statements of Changes in Net Assets 28
Notes to Financial Statements 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 Advisor at the date of
this report and may change. References are not a recommendation to buy or sell
any security. Fund holdings are subject to change. Since indices are
unmanaged, it is not possible to invest in them.
Sources for financial data include Lipper Analytical Services, Inc. and Frank
Russell Company.
Page 2
Monetta Fund Period ended 6/30/97
Investment Objective: Capital Appreciation/Income
Market Capitalization Range: $50 million - $1 billion
Total Net Assets: $159 million
<TABLE>
<CAPTION>
PERFORMANCE:
Average Annual Total Return
1 Year 5 Years 10 Years
<S> <C> <C> <C>
Monetta Fund 8.5% 8.9% 12.0%
Russell 2500 20.1% 18.6% 12.6%
NASDAQ Composite* 21.7% 20.7% 13.0%
S & P 500* 34.7% 19.8% 14.6%
*Source Lipper Analytical Services, Inc.
</TABLE>
[Performance Graph Appears Here]
Measurement Period Monetta Rusell NASDQ S & P
(Fiscal Year Covered) Equity Fund 2500
<TABLE>
<CAPTION>
<C> <C> <C> <C> <C>
9/87 9676.00 10489.70 10462.00 10660.00
12/87 8759.68 7764.58 7781.64 8258.30
3/88 9302.78 9009.24 8822.04 8727.37
6/88 10479.59 9620.61 9293.14 9306.87
9/88 10723.76 9541.43 9129.58 9338.51
12/88 10778.45 9529.32 8980.77 9626.14
3/89 11114.74 10265.74 9577.99 10308.63
6/89 12002.81 11044.91 10250.36 11216.82
9/89 12571.74 11851.63 11135.99 12415.90
12/89 12419.62 11380.88 10709.48 12670.43
3/90 13085.31 11064.50 10255.40 12289.05
6/90 14633.31 11499.66 10885.08 13060.80
9/90 11810.54 8972.15 8111.56 11267.55
12/90 13831.32 9687.50 8801.86 12276.00
3/91 16392.89 12154.42 11355.28 14056.02
6/91 16884.67 12131.57 11205.39 14022.29
9/91 19169.17 13174.16 12405.49 14771.08
12/91 21561.48 14211.76 13806.06 16007.41
3/92 21699.47 14819.74 14216.10 15604.03
6/92 20315.05 14146.92 13270.73 15900.50
9/92 20918.40 14533.13 13733.88 16401.37
12/92 22744.58 16511.82 15939.54 17224.72
3/93 21236.61 17294.48 16250.36 17975.72
6/93 21393.77 17656.45 16575.37 18062.00
9/93 23058.20 18905.11 17961.07 18528.00
12/93 22857.59 19242.38 18291.56 18957.85
3/94 22254.15 18815.78 17506.85 18239.35
6/94 21047.98 18149.89 16623.80 18315.95
9/94 22529.76 19451.23 17996.93 19209.77
12/94 21437.06 19039.84 17707.18 19205.93
3/95 23503.60 20446.88 19243.63 21074.67
6/95 25127.69 22268.91 21980.08 23083.08
9/95 28258.61 24409.17 24572.41 24927.42
12/95 27444.76 25076.27 24774.64 26408.11
3/96 27867.41 26544.99 25934.09 27826.22
6/96 28731.30 27650.06 27902.49 29072.84
9/96 28679.58 28274.12 28890.23 29971.19
12/96 27888.02 29848.99 30401.19 32467.79
3/97 25863.35 28849.65 28768.65 33341.17
6/97 31180.86 33207.96 33958.51 38255.66
</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:
TOP 5 EQUITY HOLDING:
% of Net Assets
<TABLE>
<CAPTION>
<S> <C>
Newpark Resources, Inc. 1.7%
ChiRex, Inc. 1.5%
Brightpoint, Inc. 1.4%
Oregon Metallurical 1.3%
CKS Group, Inc. 1.3%
Total Top 5 Holdings 7.2%
</TABLE>
COMMENTARY:
The Monetta Fund posted an outstanding return of 20.6% during the second
quarter. We are delighted to report that with this return, the Fund ranked 3rd
among 626 growth and income funds (top 1%), with the average fund reporting a
14.3% return, as ranked by Lipper Analytical Services. Lipper is an
independent company whose ranking is based upon total return. For the six
months ended June 30, the fund appreciated 11.8% versus a 11.3% return for the
Russell 2500 Index.
As we stated in our December 31, 1996 newsletter, we are extremely focused on
identifying early stage growth companies. We believe that this discipline was
a key reason for our strong performance for the six months ended June 1997. We
will continue to focus on our strength, which is identifying early stage growth
companies. We feel strongly that by focusing on this universe of stocks we
can identify more growth companies at reasonable valuation levels, which in
turn provide the best opportunity for price appreciation.
Performance was strong across all industry groups in the second quarter, with a
large number of holdings posting gains of 30% or greater. Within the consumer
sector, restaurant stocks were among the best performers with Landry's Seafood
Restaurants and Logan's Roadhouse leading the way. We saw strength across the
financial services sector, with most stocks reporting solid gains. We were
especially pleased with our performance in the technology sector, where we feel
our emphasis on investing in early stage growth companies really paid off
during the quarter. A number of our holdings recorded gains of 50% or more,
including Aavid Thermal Technologies and REMEC, Inc.
We are more excited than ever as we enter into the second half of 1997, and we
are looking to build on the solid foundation that has been established this
year. We look forward to reporting our progress to you in the upcoming
quarters.
Page 3
Monetta Small-Cap Equity Fund Period ended 6/30/97
Investment Objective: Capital Appreciation
Market Capitalization Range: Under $1 billion
Total Net Assets: $627 thousand
PERFORMANCE:
Average Annual Total Return
Second Since Inception
Quarter 2/1/97
<TABLE>
<CAPTION>
<S> <C> <C>
Monetta Small-Cap Equity Fund 24.7% 18.2%
Russell 2000 16.2% 8.0%
</TABLE>
*Source Lipper Analytical Services, Inc.
The Russell 2000 index is a broad measure representative of the general market.
Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
TOP 5 EQUITY HOLDINGS:
% of Net Assets
<TABLE>
<CAPTION>
<S> <C>
Goody's Family Clothing, Inc. 3.5%
Aavid Thermal Tech. 3.3%
Newpark Resources, Inc. 3.2%
Medicis Pharm. CL-A 3.2%
Vans, Inc. 2.9%
Total Top 5 Holdings 16.1%
</TABLE>
COMMENTARY:
The Small-Cap Equity Fund is off to a great start as demonstrated by the
spectacular return of 24.6% during the second quarter. As this Fund was just
introduced in February 1997, it had not yet been included in the Lipper Index,
but we are taking the necessary steps to get it listed by the end of the 3rd
quarter. Since inception on February 1, 1997, the Small-Cap Equity Fund has
appreciated 18.2%, versus a 8.0% return for the Russell 2000 Index.
We are pleased to be able to offer this exciting new fund to you as yet another
option to meet your asset diversification needs. Like the Monetta Fund, the
Small-Cap Equity Fund focuses on identifying early stage growth companies.
Companies in the Small-Cap Fund will also be held in the Monetta Fund. The
primary difference is that the Small-Cap Fund is less diversified than the
Monetta Fund and it includes a 12b-1 distribution fee.
The Monetta Small-Cap Fund recorded strong gains across all industry sectors,
with a number of individual holdings posting gains of 30% or more. Due to the
fact that there are fewer companies in the Small-Cap Fund than the Monetta
Fund, strong performers in both funds such as Landry's Seafood Restaurants,
Logan's Roadhouse, Aavid Thermal Technologies and REMEC, Inc. had a bigger
impact on the performance of the Small-Cap Equity Fund.
A number of market forecasters are predicting improving performance for small-
cap stocks which have lagged large-cap stocks over the past year. While it is
impossible to predict this with any certainty, it gives further support to the
premise that diversification across all market capitalization segments may be
more prudent today than ever.
Page 4
Monetta Mid-Cap Equity Fund Period ended 6/30/97
Investment Objective: Capital Appreciation
Market Capitalization Range: $1 billion - $5 billion
Total Net Assets: $20.4 million
PERFORMANCE:
Average Annual Total Return
Since Incept.
1 Year 3 Years (3/1/93)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Monetta Mid-Cap Equity Fund 27.1% 22.8% 22.7%
S & P 400* 23.4% 22.4% 16.6%
S & P 500* 34.7% 28.8% 20.1%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
Measurement Period Mid-Cap S & P S & P
(Fiscal Year Covered) Equity Fund 400 Index 500 Index
<TABLE>
<CAPTION>
<C> <C> <C> <C>
3/1/93 10000.00 10000.00 10000.00
3/93 11670.00 10220.00 10080.00
6/93 11880.00 10455.00 10120.00
9/93 13120.00 10978.00 10383.00
12/93 13540.00 11274.00 10622.00
3/94 13475.00 10793.00 10218.00
6/94 13109.00 10399.00 10258.00
9/94 13887.00 11103.00 10759.00
12/94 13835.00 10817.00 10757.00
3/95 14835.00 11692.00 11804.00
6/95 16536.00 12723.00 12929.00
9/95 17603.00 13965.00 13955.00
12/95 17233.00 14165.00 14785.00
3/96 18717.00 15037.00 15579.00
6/96 19106.00 15470.00 16277.00
9/96 19855.00 15920.00 16779.00
12/96 21402.00 16885.00 18177.00
3/97 21314.00 16634.00 18666.00
6/97 24277.00 19085.00 21922.00
</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 a broad measure representative of the general
market. Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
TOP 5 EQUITY HOLDING:
% of Net Assets
<TABLE>
<CAPTION>
<S> <C>
Newpark Resources, Inc. 3.3%
Smithfield Foods, Inc. 3.0%
BJ Services Co. 2.6%
First USA Payment Tech., Inc. 2.6%
Fred Meyer, Inc. 2.5%
Total Top 5 Holdings 14.0%
</TABLE>
COMMENTARY:
The Monetta Mid-Cap Equity Fund returned a strong 13.9% in the second quarter,
enabling a 13.4% gain for the first half of 1997. The six month return places
the Fund in the top 22% of all Mid-Cap Funds as ranked by Lipper Analytical
Services.
The Fund also exceeded the returns of more than 80% of comparable Mid-Cap Funds
with a return of 27.1% for the trailing 12 month period while the average Mid-
Cap Funds returned 15.6%, as reported by Lipper Analytical Services.
Mid-cap stocks as a group have been "middle-of-the-road" relative performers in
1997 by topping the average small-cap stock but lagging the typical larger
stock. We define mid-cap stocks as those with market capitalization ranging
from $1 billion to $5 billion. Mid-cap stocks generally combine some of the
benefits of small stocks (rapid growth potential) with some of the benefits of
large stocks (stability of growth and liquidity). However, as the market
becomes increasingly volatile, investors are gravitating to one extreme or the
other. Fear predominated during most of 1996 and early 1997 and investors
snapped up large stocks perceived to be safe" and more liquid. When stocks
surged in the second quarter of 1997 "greed" took over and small-caps
outperformed.
Notably, however, the Monetta Mid-Cap Fund has done well during both
environments, underlining our determination to utilize careful analysis and
stock selection to produce favorable returns while holding the volatility of
our portfolio below that of the market.
Page 5
Monetta Large-Cap Equity Fund Period ended 6/30/97
Investment Objective: Capital Appreciation
Market Capitalization Range: $5 billion +
Total Net Assets: $3.8 million
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year (9/1/95)
<TABLE>
<CAPTION>
<S> <C> <C>
Monetta Large-Cap Fund 31.0% 27.6%
Equity Fund
S & P 500* 34.7% 30.9%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
Measurement Period Large-Cap S & P
(Fiscal Year Covered) Equity Fund 500 Index
<TABLE>
<CAPTION>
<C> <C> <C>
9/95 10000.00 10482.00
12/95 10574.00 11105.00
3/96 11344.00 11701.00
6/96 11923.00 12225.00
9/96 12864.00 12603.00
12/96 13555.00 13653.00
3/97 13842.00 14020.00
6/97 15621.00 16465.00
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Large-Cap Equity Fund to the S & P 500. The S
& P 500 Composite index is a broad measure representative of the general
market. Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
TOP 5 EQUITY HOLDING:
% of Net Assets
<TABLE>
<CAPTION>
<S> <C>
Household Int'l 3.1%
Boeing Co. 3.0%
Nokia Corp-Sponsored ADR A 2.9%
American Stores 2.8%
Eaton Corp 2.7%
Total Top 5 Holdings 14.5%
</TABLE>
COMMENTARY:
The Monetta Large-Cap Fund enjoyed the fruits of the market's second quarter
surge by posting a return of 12.9% for the period. The Fund's 15.2% return at
the midpoint of 1997 places it in the top half of all growth funds ranked by
Lipper Analytical Services. This continues the consistently strong performance
of the Fund which is up 31.0% over the past 12 months, besting more than three-
fourths of the 758 growth funds for which Lipper Analytical Services reports
one-year performance.
The Monetta Large-Cap Fund continues to invest primarily in companies which
display the following characteristics: market capitalization of $5 billion or
greater; strong revenue growth; rising margins; improving rates of earnings
growth; and attractive entry points. A strong domestic economy and
international expansion opportunities fuel the revenue growth of many of our
large-cap stocks, while cost cutting and productivity gains aid margins. With
the significant recent outperformance of the large-cap stocks, however, it is
becoming increasingly difficult to uncover such companies that do not also
trade at substantially higher valuations than are warranted by their growth
rates.
As always, we are mindful of our dual goals of preservation of our investor's
capital as well as production of strong returns. Careful analysis allows us to
know what a company is worth. This in turn allows us to invest at levels which
allow room for an appropriate return on our investment. Rather than getting
caught up in the market's euphoria and "throwing money" at any stock that goes
up, we carefully target a portfolio of stocks designed to produce above-average
returns and control risk.
We thoroughly enjoy the recent strength of the market, but our success depends
upon understanding our companies and what they are worth, not the continued
upward march of stock prices.
Page 6
Monetta Balanced Fund Period ended 6/30/97
Investment Objective: Capital Appreciation/Income
Market Capitalization Range: $50 billion +
Average Maturity: 8.1 years
Total Net Assets: $8.7 million
PERFORMANCE:
Average Annual Total Return
Since Inception
1 Year (9/1/95)
<TABLE>
<CAPTION>
<S> <C> <C>
Monetta Balanced Fund 22.9% 23.1%
Benchmark* 25.3% 22.3%
</TABLE>
[Performance Graph Appears Here]
Measurement Period Balanced Fund Benchmark
(Fiscal Year Covered)
<TABLE>
<CAPTION>
<C> <C> <C>
9/95 10000.00 10313.00
12/95 10616.00 10919.00
3/96 11131.00 11220.00
6/96 11913.00 11577.00
9/96 12547.00 11887.00
12/96 13369.00 12682.00
3/97 13358.00 12888.00
6/97 14642.00 14615.00
</TABLE>
The graph above to the right compares the change in value of a $10,000
investment in the Monetta Trust Balanced Fund to the Benchmark.
*The Benchmark is a composite blend of two indices, 65% S & P 500 (stock index)
and 35% Lehman Govt/Corp Bond (bond index). It is a hypothetical benchmark.
Please refer to footnote on the bottom of page 2.
PORTFOLIO COMPOSITION:
TOP 5 EQUITY HOLDING:
% of Net Assets
<TABLE>
<CAPTION>
<S> <C>
Boeing Co. 1.7%
Sante Fe Int'l Corp 1.6%
Newpark Resources, Inc. 1.6%
Household Int'l 1.5%
Eaton Corp 1.3%
Total Top 5 Holdings 7.7%
</TABLE>
COMMENTARY:
The Monetta Balanced Fund produced a 9.6% return for the second quarter,
allowing it to gain 9.5% during the first half of 1997. For the 12 months ended
June 30, 1997 the Balanced Fund is up 22.9% placing it in the top 18% of all
balanced funds ranked for that period by Lipper Analytical Services. This
builds upon a #1 ranking by Lipper Analytical Services in 1996.
Our asset allocation continues to be tilted toward stocks, which comprised 63%
of the portfolio at mid-year. Each stock held in the Balance Fund is also held
in at least one of our other equity portfolios. This ensures that the same
factors leading to the success of our pure equity portfolios are also present
in the equity portion of the Balanced Fund. In short, we do rigorous
fundamental analysis, focus on companies with rapid or improving growth rates,
and insist on good entry points.
High grade corporate and treasury securities comprised 33% of assets, while
cash was 4% of assets. The fixed income securities provide income and
stability to counter balance the (generally) more volatile but higher returning
equity portion of the portfolio.
The Balanced Fund is the most diversified of our portfolios since it combines
stocks of all sizes with fixed income securities. It is ideal for the
conservative investor since it allows participation in the return of a rising
equity market while cushioning against inevitable market volatility.
Page 7
Monetta Intermediate Bond Fund Period ended 6/30/97
Investment Objective: Capital Appreciation/Income
30-Day SEC Yield: 6.19%
Average Maturity: 4.4 Years
Total Net Assets: $3.1 million
PERFORMANCE:
Average Annual Total Return
Since Incept.
1 Year 3 Years (3/1/93)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Monetta Intermediate
Bond Fund 8.5% 8.8% 7.2%
Lehman Govt/Corp
Intermediate
Bond Index* 7.2% 7.5% 5.7%
</TABLE>
*Source Lipper Analytical Services, Inc.
[Performance Graph Appears Here]
Mearsurement Period Bond Fund Lehman
(Fiscal Year Covered)
<TABLE>
<CAPTION>
<C> <C> <C>
3/1/93 10000.00 10007.00
3/93 10000.00 10028.00
6/93 10399.00 10255.00
9/93 10732.00 10486.00
12/93 10817.00 10504.00
3/94 10585.00 10291.00
6/94 10494.00 10229.00
9/94 10613.00 10313.00
12/94 10705.00 10302.00
3/95 11270.00 10754.00
6/95 11866.00 11292.00
9/95 12046.00 11479.00
12/95 12282.00 11883.00
3/96 12245.00 11784.00
6/96 12428.00 11859.00
9/96 12702.00 12068.00
12/96 13074.00 12364.00
3/97 13041.00 12350.00
6/97 13485.00 12715.00
</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:
MATURITY PROFILE:
<TABLE>
<CAPTION>
<C> <C>
1 Year or Less 14.3%
1 - 3 Years 19.0%
4 - 6 Years 36.7%
7 - 10 Years 29.5%
Over 10 Years 0.5%
100.0%
</TABLE>
COMMENTARY:
The Fund continued to build an impressive record by posting excellent six month
results. Since year end, the Fund's return of 3.14% ranked it 31 among
comparable funds in its category as measured by Lipper Analytical Services,
which averaged a return of 2.74%.
The Fund's 30-day SEC yield at 6/30/97 was 6.19%. During this period the Fund
paid out income dividends to average an income return of 5.9% on an annualized
basis.
The Fund outperformed its primary benchmark, the Lehman Government Corporate
Intermediate Index by 31 basis points since year-end and 45 points for the
latest quarter despite a roller-coaster interest rate environment.
A string of relatively strong economic data moved the Federal Reserve to raise
the discount rate by 25 basis points on March 25. Interest rate levels spike
in all areas of the bond market, as yield levels widened as much as 40-50 basis
points from 12/31/96. The rate hike was a double-edge sword for investors.
The good news was that the Federal Reserve acted pre-emptively against
inflation. The bad news was that, based on 25 years of history, the Federal
Reserve would tighten again. The Fund viewed this rate rise as an opportunity
and re-positioned itself toward an overweighting in the higher yielding sectors
of the corporate bond market and moderately extending the average maturity
versus its primary benchmark. The waning strength of the economic growth
indicators fueled an interest rate decline which gave the Fund significant
capital appreciation without sacrificing income.
Going forward, it is believed that weak consumer spending and soft inflation
will keep the Federal Reserve on hold as the reality of weak economic growth
will continue to bode well for stable to lower interest rates. At this point,
we will continue to overweight the higher yielding sectors of the corporate
bond market but will endeavor to bring it's maturity and market sector
characteristics closer to the primary benchmark as rates continue to improve.
Page 8
Monetta Government Money Market Fund Period ended 6/30/97
Investment Objective: Income and Capital Preservation
7-Day Yield: 5.08%
Average Days to Maturity: 48 Days
Total Net Assets: $5.2 million
PERFORMANCE:
Average Annual Total Return
1 Year 3 Years Since Incep.
(3/1/93)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Monetta Government
Money Market Fund 5.09%** 5.26%** 4.57%**
Lipper U.S. Gov't
Money Market
Funds Avg.* 4.80%** 4.88%** 4.19%**
</TABLE>
[Performance Graph Appears Here]
Measurement Period Money Market Lipper
(Fiscal Year Covered) Average
<TABLE>
<CAPTION>
<C> <C> <C>
3/1/93 10000.00 10000.00
3/93 10013.00 10023.00
6/93 10072.00 10088.00
9/93 10147.00 10154.00
12/93 10224.00 10222.00
3/94 10301.00 10290.00
6/94 10396.00 10374.00
9/94 10507.00 10475.00
12/94 10637.00 10597.00
3/95 10788.00 10738.00
6/95 10950.00 10885.00
9/95 11110.00 11030.00
12/95 11262.00 11174.00
3/96 11401.00 11309.00
6/96 11539.00 11440.00
9/96 11683.00 11579.00
12/96 11832.00 11711.00
3/97 11977.00 11846.00
6/97 12126.00 11988.00
</TABLE>
*Source Lipper Analytical Services, Inc.
**Total returns are net of advisory fees waived and voluntary absorption of all
or part of the Fund's operating expenses by the Advisor. Please refer to
footnote on the bottom of page 39. Notes to Financial Statements, for gross
returns and expenses.
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:
ALLOCATION:
% of Net Assets
<TABLE>
<CAPTION>
<S> <C>
U.S. Treasuries 61.7%
Government Agencies 38.4%
Total Investments 100.1%
Other Assets & Liabilities (0.1)%
Total 100.0%
</TABLE>
COMMENTARY:
For the six months ending 6/30/97, the Government Money market Fund posted a
return of 2.49%. The Fund was ranked 16 of 115 comparable funds as measured by
Lipper Analytical Services. The average return of the Lipper U.S. Government
Fund category was 2.37%. As of 6/30/97, the Fund's 7-day yield was 5.08%
versus a first quarter yield of 4.96%.
Money market yields remained reasonably steady over the past six months despite
a bump in the road at the end of March when the Federal Reserve raised the
discount rate 25 basis points. During the past two quarters the Fund
maintained an average maturity of 72 days. This was slightly longer than the
average government money fund in an effort to lock in yields in a perceived
declining interest rate environment. Going forward, we anticipate no major
change in it's investment stance. We believe the economy will maintain a
moderate growth path with diminishing inflation risk.
Page 9
Schedule of Investments
June 30, 1997 (unaudited)
MONETTA FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 91.3%
<S> <C>
Consumer Related - 28.1% $44,564
Broadcasting/Cable TV - 2.7%
*30,000 Chancellor Corp $1,200
*50,000 Metro Networks, Inc. 1,213
*45,000 SFX Broadcasting, Inc. -CL A 1,898
4,311
Food Processing - 0.7%
*40,000 Morningstar Group, Inc. 1,175
Restaurants/Lodging - 6.2%
70,000 Innkeepers USA Trust 1,050
*55,000 Landry's Seafood Restaurants 1,265
*65,000 Logan's Roadhouse, Inc. 1,544
*40,000 Lone Star Steakhouse 1,040
*40,000 Outback Steakhouse, Inc. 967
50,000 Patriot American Hospitality 1,275
*20,000 Rainforest Cafe 507
*50,000 Rare Hospitality Int'l, Inc. 619
*30,000 Roadhouse Grill, Inc. 180
*50,000 Showbiz Pizza Time, Inc. 1,319
9,766
Retail Manufacturers & Distribution - 3.5%
*50,000 Galey & Lord, Inc. 938
*40,000 Hirsch Int'l Corp-A 890
*50,000 Home Products Int'l, Inc. 494
*6,700 Polo Ralph Lauren Corp 183
*80,000 Quaker Fabric Corp 1,320
*23,000 Triangle Pacific Corp 736
30,000 Wolverine World Wide, Inc. 911
5,472
Retail Trades - 9.0%
*40,000 Ann Taylor Stores 780
25,000 Central Parking Corp 870
*50,000 Dominick's Supermarkets, Inc. 1,331
*50,000 Dress Barn, Inc. 975
*75,000 Furniture Brands Int'l 1,453
*50,000 Goody's Family Clothing, Inc. 1,369
*40,000 Guitar Center, Inc. 675
*50,000 Hibbett Sporting Goods, Inc. 900
*50,000 Just for Feet, Inc. 872
30,000 Ross Stores, Inc. 981
*50,000 Stage Stores, Inc. 1,306
*70,000 The Buckle, Inc. 1,610
*80,000 Vans, Inc. 1,210
14,332
Miscellaneous - 6.0%
*50,000 American Business Info 1,087
*100,000 American Eco Corp 843
*60,000 CKS Group, Inc. 2,025
*40,000 Consolidated Graphics, Inc. 1,670
*40,100 Maximus, Inc. 717
*100,000 May & Speh, Inc. 1,350
*30,000 US Office Products Co. 917
*45,000 Warrantech Corp 467
*24,500 Waste Industries, Inc. 432
9,508
Financial Related - 11.3% $17,851
Financial Services - 11.3%
*50,000 Americredit $1,050
*60,000 BA Merchant Services 1,144
12,800 Berkley (WR) Corp 754
50,000 Capmac Holdings, Inc. 1,681
30,000 Excel Realty Trust, Inc. 791
Page 10
30,000Executive Risk, Inc. 1,560
*39,500 First Alliance 1,155
*35,000 FirstPlus Financial Grp 1,190
*40,000 First USA Paymentech, Inc. 1,157
20,000 Frontier Insurance Grp, Inc. 1,295
*40,000 Golf Trust of America 1,112
*14,700 Healthcare Financial Partners 300
30,000 Horace Mann Educators 1,470
*60,000 Imperial Credit Industries 1,234
*35,000 Life USA Holding, Inc. 499
*20,000 Moneygram Payment Systems, Inc. 315
40,500 United Cos Financial Corp 1,144
17,851
Industrial Related - 29.4% $46,684
Energy Resources & Services - 4.0%
*30,000 BJ Services $1,609
*50,000 Houston Exporation Co. 778
*80,000 Newpark Resources, Inc. 2,700
*100,000 Titan Exploration 1,212
6,299
Housing - 1.0%
*43,750 American Homestar Corp 935
30,000 T.J. International 705
1,640
Industrial & Electronics Products - 18.6%
*55,000 AFC Cable Systems, Inc. 1,485
*79,000 Advanced Lighting Techs 1,995
30,000 Applied Power, Inc.-CL A 1,549
*60,400 BE Aerospace, Inc. 1,190
28,000 BMC Industries, Inc. 959
*22,500 Ballantyne of Omaha, Inc. 405
*25,000 Berg Electronics Corp 898
65,000 Chart Industries, Inc. 1,779
*35,000 Coherent, Inc. 1,557
*40,000 Control Devices, Inc. 510
55,000 DT Industries 1,966
*60,000 FiberMark, Inc. 1,252
*80,000 Foamex Int'l, Inc. 1,050
*50,000 Genrad, Inc. 1,131
*35,000 JPM Company 1,247
*25,000 Lecroy Corp 922
*40,000 Mohawk Industries 910
*35,000 O'Sullivan Industries 580
20,000 Precision Castparts Corp 1,193
*12,300 SPS Technologies, Inc. 870
90,000 Spartech 1,170
*50,000 Total Control Products, Inc. 413
*30,000 Trident Int'l, Inc. 540
*20,000 U.S. Filter Corp 545
*97,000 WPI Grp, Inc. 849
*20,000 Waters Corp 718
*40,000 Wyman-Gordon Co. 1,080
29,483
Mining/Mineral Resources 0 2.3%
*75,000 Oregon Metallurical Corp 2,110
*50,000 Titanium Metals Corp 1,581
3,691
Transportation - 2.7%
29,500 Expeditors Int'l of
Washington, Inc. 837
*50,000 Kellstrom Industries, Inc. 787
50,000 Mascotech, Inc. 1,044
*5,000 Simon Transportation Svcs 99
*15,000 Swift Transportation 443
40,000 US Freightways Corp 1,035
4,245
Page 11
Miscellaneous - 0.8%
*40,000 Nichols Research Corp 840
*18,500 Rental Service Corp 486
1,326
Medical Related - 11.8% $18,721
Medical Supplies - 2.6%
65,000 Ballard Medical Products $1,304
*79,200 Graham Field Health 1,079
35,000 Meridian Diagnostics, Inc. 293
*50,000 Safeskin Corp 1,472
4,148
Medical Technology - 2.3%
50,000 ADAC Laboratories 1,181
*80,000 Cohr, Inc. 1,500
*50,000 OEC Medical Systems, Inc. 891
3,572
Pharmaceuticals - 4.7%
*40,000 Applied Analytical Industries 810
*156,366 Capstone Pharmacy Svcs 1,700
*203,000 ChiRex, Inc. 2,411
*32,500 Medicis Pharm. -CL A 1,621
*40,000 Vivus, Inc. 953
7,495
Physician Services - 2.2%
50,000 Hooper Holmes, Inc. 1,147
*50,000 Medquist, Inc. 1,519
*80,000 Sheridan Healthcare, Inc. 840
3,506
Technology Related - 10.7% $16,808
Computer Software & Systems - 1.0%
*4,600 Great Plains Software, Inc. $124
*10,000 Programmer's Paradise, Inc. 95
*45,400 Smallworldwide PLC 772
*101,000 Storage Dimensions, Inc. 555
1,546
Computer & Office Equipment - 1.4%
*15,000 Comverse Technology, Inc. 780
35,000 Norstran, Inc. 569
*66,500 Transact Technologies, Inc. 939
2,288
Semiconductors - 1.8%
*80,000 Aavid Thermal Technologies 1,650
*10,000 Advanced Technology Mat. 294
*30,000 Microchip Tech 893
2,837
Telecommunications & Equipment - 6.4%
*40,000 Anadigics, Inc. 1,240
*22,900 Boston Technology, Inc. 677
*70,000 Brightpoint, Inc. 2,279
*38,700 Digital Lightwave, Inc. 339
*77,000 Electromagnetic Sciences, Inc. 1,348
*42,400 P-Com, Inc. 1,399
*35,850 REMEC, Inc. 842
*80,000 RMH Teleservices, Inc. 600
*127,000 Transcrypt Int'l, Inc. 1,413
10,137
Total Common Stocks
(Cost $118,391)(a) 144,628
Page 12
Variable Demand Notes - 1.3%
2,131,900 Warner Lambert 2,132
Commercial Paper - 6.6%
4,000,000 Merrill Lynch
5.530% Due 07/01/97 4,000
2,000,000 Philip Morris
5.530% Due 07/08/97 1,998
2,500,000 Merrill Lynch
5.570% Due 07/15/97 2,494
2,000,000 Philip Morris
5.500% Due 07/22/97 1,994
Total Commercial Paper 10,486
Total Short-Term Investments 12,618
Total Investments - 99.2%
(Cost $131,009)(a) 157,246
Other Assets Less Liabilities - 0.8% 1,302
Net Assets - 100.0% $158,548
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $28,765 and aggregate gross unrealized depreciation is $2,528,
resulting in net unrealized appreciation of $26,237 (in thousands).
See accompanying notes to financial statements
*Non-incoming producing security
Page 13
Schedule of Investments
June 30, 1997 (unaudited)
MONETTA SMALL-CAP EQUITY FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 92.7%
<S> <C>
Consumer Related - 25.2% $158
Food Processing - 1.4%
*300 Morningstar Grp, Inc. $9
Restaurants/Lodging - 6.4%
500 Innkeepers USA Trust 7
*700 Landry's Seafood Restaurants 16
*700 Logan's Roadhouse, Inc. 17
40
Retail Manufacturers & Distribution - 3.4%
*800 Home Products Int'l, Inc. 8
*800 Quaker Fabric Corp 13
21
Retail Trades - 10.0%
*800 Goody's Family Clothing, Inc. 22
*800 Guitar Center, Inc. 14
*500 Hibbett Sporting Goods, Inc. 9
*1,200 Vans, Inc. 18
63
Miscellaneous - 4.0%
*900 Maximus, Inc. 16
*500 Waste Industries, Inc. 9
25
Financial Related - 7.1% $44
Financial Services - 7.1%
300 Capmac Holdings, Inc. $10
*400 FirstPlus Financial Grp 14
*300 Golf Trust of America 8
*600 Healthcare Financial Partners 12
44
Industrial Related - 24.9% $155
Energy Resources & Services - 3.2%
*600 Newpark Resources, Inc. $20
Industrial & Electronics Products - 19.4%
*500 Advanced Lighting Techs 12
500 Chart Industries, Inc. 14
400 DT Industries 14
*750 FiberMark, Inc. 16
*700 Genrad, Inc. 16
*300 Lecroy Corp 11
*200 SPS Technologies, Inc. 14
900 Spartech 12
*1,500 Total Control Products, Inc. 12
121
Transportation - 2.3%
*900 Kellstrom Industries, Inc. 14
Medical Related - 18.9% $118
Medical Supplies - 4.4%
500 Ballard Medical Products $10
*1,300 Graham Field Health 18
28
Medical Technology - 4.4%
*800 Cohr, Inc. 15
*700 OEC Medical Systems, Inc. 12
27
Pharmaceuticals - 7.7%
*1,400 Capstone Pharmacy Services 15
*1,100 ChiRex, Inc. 13
*400 Medicis Pharm. -CL A 20
48
Page 14
Physician Services - 2.4%
*500 Medquist, Inc. 15
Technology Related - 16.6% $106
Computer Software & Systems - 4.4%
*100 Aris Corp $2
*100 Great Plains Software, Inc. 3
*900 Smallworldwide PLC 15
*1,400 Storage Dimensions, Inc. 8
28
Computer & Office Equipment - 1.8%
*800 Transact Technologies, Inc. 11
Semiconductors - 4.1%
*1,000 Aavid Thermal Technologies 21
*100 Rambus, Inc. 5
26
Telecommunications & Equipment - 6.3%
*500 Electromagnetic Sciences, Inc. 9
*100 Genesys Telecom Labs, Inc. 3
*750 REMEC, Inc. 18
*1,000 Transcrypt Int'l, Inc. 11
41
Total Common Stocks
(Cost $481)(a) 581
Variable Demand Notes - 7.5%
13,500 Johnson Controls 14
33,200 Wisc. Electric Public 33
Total Variable Demand Notes 47
Total Investments - 100.2%
(Cost $528)(a) 628
Other Assets Less Liabilities - (0.2)% (1)
Net Assets - 100% $627
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $107 and aggregate gross unrealized depreciation is $7,
resulting in net unrealized appreciation of $100 (in thousands).
See accompanying notes to financial statements.
*Non-incoming producing security
Page 15
Schedule of Investments
June 30, 1997 (unaudited)
MONETTA MID-CAP EQUITY FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 87.6%
<S> <C>
Consumer Related - 29.8% $6,083
Food Processing - 5.4%
12,000 Dean Foods Co. $484
*10,000 Smithfield Foods 615
1,099
Restaurants/Lodging - 2.3%
*8,250 HFS, Inc. 479
Retail Manufacturers & Distribution - 5.0%
4,000 Avery Dennison Corp 160
15,000 Hasbro, Inc. 426
15,000 Ikon Office Solutions, Inc. 374
*2,000 Polo Ralph Lauren Corp 55
1,015
Retail Trades - 13.4%
10,000 American Stores 494
10,000 CVS Corporation 512
*17,000 Dominick's Supermarkets, Inc. 453
*10,000 Fred Meyer, Inc. 517
7,500 Nordstrom, Inc. 368
*9,000 Proffitt's, Inc. 395
2,739
Miscellaneous - 3.7%
*21,000 Allied Waste Industries, Inc. 365
*10,000 USA Waste Services, Inc. 386
751
Financial Related - 12.8% $2,614
Financial Services - 12.8%
*10,000 BA Merchant Services $191
*25,000 Dime Bancorp, Inc. 437
4,500 First Tennessee Nat'l 216
*18,000 First USA Paymentech, Inc. 521
10,000 Green Tree Financial Corp 356
*10,000 Hartford Life-CL A 375
*11,200 Nationwide Financial Svcs 298
10,000 Roosevelt Financial Grp, Inc. 220
2,614
Industrial Related - 33.1% $6,738
Energy Resources & Services - 10.6%
*10,000 BJ Services 536
*20,000 Newpark Resources, Inc. 675
*15,000 Sante Fe Int'l Corp 510
10,000 Tidewater, Inc. 440
2,161
Housing - 1.9%
16,000 Oakwood Homes 384
Industrial & Electronics Products - 12.2%
10,000 Applied Power Inc. -CL A 516
9,000 DT Industries 322
*17,000 Gulfstream Aerospace Corp 502
10,000 Harnischfeger Industries, Inc. 415
8,000 Precision Castparts Corp 477
9,000 Tri Mas Corp 253
2,485
Transportation - 8.4%
12,000 CNF Transportation, Inc. 387
19,000 Cooper Tire & Rubber 418
4,000 Cummins Engine 282
20,000 Mascotech, Inc. 417
*6,900 Swift Transportation 204
1,708
Page 16
Medical Related - 4.5% $917
Pharmaceuticals - 4.5%
*10,000 Elan Corp PLC $452
*11,000 Watson Pharm. 465
917
Technology Related - 7.4% $1,504
Computer Software & Systems - 1.9%
*10,000 Sterling Commerce, Inc. $329
*9,700 Storage Dimensions, Inc. 53
382
Computer & Office Equipment - 1.3%
*15,000 Micron Electronics, Inc. 267
Telecommunications & Equipment - 4.2%
5,000 Harris Corp. 420
*10,000 Newbridge Networks Corp 435
855
Total Commons Stocks
(Cost $14,843)(a) 17,856
Variable Demand Notes - 3.1%
431,600 General Mills 432
210,400 Warner Lambert 210
642
Commercial Paper - 9.3%
500,000 Merrill Lynch
5.550% Due 07/08/97 499
400,000 Merrill Lynch
5.590% Due 07/17/97 399
1,000,000 Philip Morris
5.500% Due 07/24/97 997
Total Commercial Paper 1,895
Total Short-Term Investments 2,537
Total Investments - 100.00%
(Cost $17,380)(a) 20,393
Other Assets Less Liabilities (4)
Net Assets - 100.0% $20,389
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $3,058 and aggregate gross unrealized depreciation is $45,
resulting in net unrealized of $3,013 (in thousands).
See accompanying notes to financial statements
*Non-incoming producing security
Page 17
Schedule of Investments
June 30, 1997 (unaudited)
MONETTA LARGE-CAP EQUITY FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 90.2%
<S> <C>
Consumer Related - 27.5% $1,054
Restaurants/Lodging - 1.7%
*1,100 HFS, Inc. $64
Retail Manufacturers & Distribution - 7.9%
1,200 Eastman Kodak Co. 92
1,500 Estee Lauder Companies-CL A 75
3,000 Ikon Office Solutions, Inc. 75
1,200 Kimberly-Clark Corp 60
302
Retail Trades - 14.2%
2,200 American Stores 109
2,000 CVS Corporation 102
*2,500 Costco Companies, Inc. 82
1,400 Home Depot, Inc. 97
*7,000 Kmart Corp 86
*1,500 Safeway, Inc. 69
545
Miscellaneous - 3.7%
2,000 Browning Ferris 66
*2,000 USA Waste Services, Inc. 77
143
Financial Related - 12.9% $495
Financial Services - 12.9%
2,800 Equitable Companies, Inc. $93
1,100 Fleet Financial Grp 70
2,000 Green Tree Financial Corp 71
*2,000 Hartford Life - CL A 75
1,000 Household Int'l 117
*2,600 Nationwide Financial Svcs 69
495
Industrial Related - 32.6% $1,248
Chemical - 3.8%
1,200 DuPont E.I. Denemours 75
1,600 Monsanto Corp 69
144
Energy Resources & Services - 12.1%
1,500 Burlington Resources, Inc. 66
1,000 Coastal Corp 53
1,300 Halliburton 103
*3,000 Sante Fe Int'l Corp 102
700 Schlumberger Ltd. 88
2,100 Union Pacific Resources 52
464
Industrial & Electronics Products - 11.9%
1,800 Corning, Inc. 100
1,300 Crown Cork & Seal, Inc. 69
1,200 Eaton Corp 105
1,600 Harnischfeger Industries, Inc. 66
1,000 Nucor Corp 57
2,500 Westinghouse Electric 58
455
Mining/Mineral Resources - 1.8%
900 Aluminum Company of
America 68
Transportation - 3.0%
2,200 Boeing Co. 117
Medical Related - 2.4% $91
Pharmaceuticals - 2.4%
*2,000 Elan Corp PLC $91
Technology Related - 14.8% $565
Computer Software & Systems - 0.3%
*1,800 Storage Dimensions, Inc. $10
Page 18
Computer & Office Equipment - 4.5%
*1,800 EMC Corp/Mass 70
1,300 Xerox Corp 103
173
Semiconductors - 2.4%
650 Intel Corp 92
Telecommunications & Equipment - 7.6%
1,100 Harris Corp 92
*2,000 Newbridge Networks Corp 87
1,500 Nokia Corp-Sponsored ADR A 111
290
Total Common Stocks
(Cost $3,108)(a) 3,453
Variable Demand Notes - 10.1%
191,300 Johnson Controls 191
185,800 Warner Lambert 186
11,000 Wisc. Electric Public 11
Total Variable Demand Notes 388
Total Investments - 100.3%
(Cost $3,496)(a) 3,841
Other Assets Less Liabilities - (0.3)% (1)
Net Assets - 100.0% $3,840
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $433 and aggregate gross unrealized depreciation is $88,
resulting in net unrealized appreciation of $345 (in thousands).
See accompanying notes to financial statements
*Non-income producing security
Schedule of Investments
June 30, 1997 (unaudited)
MONETTA BALANCED FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
COMMON STOCKS - 62.9%
<S> <C>
Consumer Related - 19.8% $1,725
Food Processing - 2.2%
2,500 Dean Foods Co. $101
*1,500 Smithfield Foods 92
193
Restaurants/Lodging - 1.8%
*1,300 HFS, Inc. 76
*3,500 Logan's Roadhouse, Inc. 83
159
Retail Manufacturers & Distribution - 5.4%
1,200 Eastman Kodak Co. 92
1,500 Estee Lauder Cos. -CL A 75
3,000 Hasbro, Inc. 85
3,200 Ikon Office Solutions, Inc. 80
1,800 Kimberly-Clark Corp 90
*3,000 Quaker Fabric Corp 49
471
Retail Trades - 8.2%
2,000 American Stores 99
*2,500 Ann Taylor Stores 49
2,200 CVS Corporation 113
*2,000 Costco Companies, Inc. 66
*2,300 Dominick's Supermarkets, Inc. 61
*2,000 Fred Meyer, Inc. 103
1,000 Home Depot, Inc. 69
*7,500 Kmart Corp. 92
*4,000 Vans, Inc. 60
712
Miscellaneous - 2.2%
*4,000 Allied Waste Industries, Inc. 70
*2,500 American Business Info 54
*1,700 USA Waste Services, Inc. 66
190
Page 19
Financial Related - 7.1% $620
Financial Services - 7.1%
*1,200 BA Merchant Services $23
*3,000 Dime Bancorp, Inc. 53
2,500 Equitable Companies, Inc. 83
*3,000 First USA Paymentech, Inc. 87
500 Fleet Financial Group 32
*3,000 Golf Trust of America 83
1,500 Green Tree Financial Corp 53
*700 Hartford Life-CL A 26
1,100 Household Int'l 129
*1,900 Nationwide Financial Svcs. 51
620
Industrial Related - 23.3% $2,017
Chemicals - 0.9%
1,200 DuPont E.I. Denemours 75
Energy Resources & Services - 6.8%
*1,200 BJ Services 65
1,100 Halliburton 87
*4,000 Newpark Resources, Inc. 135
*4,000 Sante Fe Int'l Corp 136
400 Schlumberger Ltd. 50
1,800 Tidewater, Inc. 79
1,500 Union Pacific Resources 37
589
Industrial & Electronics Products - 8.9%
*1,900 Advanced Lighting Techs 48
700 Applied Power, Inc. -CL A 36
1,100 Chart Industries, Inc. 30
1,800 Corning, Inc. 100
800 Crown Cork & Seal, Inc. 43
1,800 DT Industries 64
1,300 Eaton Corp 114
*3,000 Gulfstream Aerospace Corp 89
1,200 Harnischfeger Industries, Inc. 50
1,400 Precision Castparts Corp 83
*4,300 Total Control Products, Inc. 35
*3,000 WPI Group, Inc. 26
2,500 Westinghouse Electric 58
776
Mining/Mineral Resources - 0.8%
900 Aluminum Company of America 68
Transportation - 5.9%
2,800 Boeing Co. 149
3,000 CNF Transportation, Inc. 97
4,000 Cooper Tire & Rubber 88
1,000 Cummmins Engine 70
3,500 Mascotech, Inc. 73
*1,100 Swift Transportation 32
509
Medical Related - 4.8% $423
Medical Technology - 1.0%
*4,600 Cohr, Inc. $86
Pharmaceuticals - 3.2%
*7,200 ChiRex, Inc. 85
*2,000 Elan Corp PLC 91
*2,500 Watson Pharm 106
282
Physician Services - 0.6%
*1,800 Medquist, Inc. 55
Technology Related - 7.9% $688
Computer Software & Systems - 0.9%
*300 Great Plains Software, inc. $8
*900 Sterling Commerce, Inc. 30
*7,500 Storage Dimensions, Inc. 41
79
Page 20
Computer & Office Equipment - 1.7%
*1,200 EMC Corp/Mass 47
1,300 Xerox Corp 102
149
Semiconductors - 1.1%
650 Intel Corp 92
Telecommunication & Equipment - 4.2%
*2,000 Electromagnetic Sciences, Inc. 35
1,000 Harris Corp 84
*2,200 Newbridge Networks Corp 96
1,400 Nokia Corp-Sponsored ADR A 103
*4,500 Transcrypt Int'l, Inc. 50
368
Total Common Stocks
(Cost $4,876)(a) 5,473
U.S. Treasury Notes - 23.9%
100,000 6.000% Due 10/15/99 100
775,000 5.750% Due 10/31/00 763
450,000 6.500% Due 08/31/01 452
300,000 6.375% Due 01/15/02 300
220,000 6.250% Due 01/15/03 218
100,000 5.750% Due 08/15/03 97
150,000 5.875% Due 02/15/04 145
2,075
Variable Demand Notes - 2.8%
241,500 Johnson Controls 242
Corporate Bonds - 4.6%
400,000 LCI Int'l, Inc.
7.250% Due 06/15/07 397
Mortgage Obligations - 4.6%
Greentree Home Impv. Mortg.
6.780% Due 06/15/28 400
Total Investments - 98.8%
(Cost $7,996)(a) 8,587
Other Assets Less Liabilities - 1.2% 109
Net Assets - 100.0% $8,696
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $696 and aggregate gross unrealized depreciation is $105,
resulting in net unrealized appreciation of $591 (in thousands).
See accompanying notes to financial statements
*Non-income producing security
Page 21
Schedule of Investments
June 30, 1997 (unaudited)
MONETTA INTERMEDIATE BOND FUND
Quoted
Shares or Market
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
Treasury Notes - 49.5%
200,000 5.500% Due 04/15/00 196
125,000 6.750% Due 04/30/00 127
300,000 6.250% Due 10/31/01 299
100,000 7.500% Due 11/15/01 104
200,000 6.375% Due 08/15/02 200
200,000 5.750% Due 08/15/03 193
200,000 5.875% Due 02/15/04 194
200,000 6.500% Due 05/15/05 200
1,513
Municipal Taxable Bond - 1.4%
40,000 Sheboygan, WI TIF #6
8.25% Due 03/15/03 42
Corporate Bonds - 33.2%
50,000 American Airlines, 8.700%
Due 01/15/98 51
50,000 Salomon, Inc., 9.375%
Due 04/15/98 51
100,000 Chase Manhatten Corp, 8.800%
Due 02/01/00 100
150,000 Int'l Lease Finance, 6.690%
Due 04/30/00 151
50,000 ADT Operation, 8.250%
Due 08/01/00 52
50,000 American Standard, 9.875%
Due 06/01/01 53
50,000 Dayton-Hudson, 9.750%
Due 07/01/02 56
100,000 IBM Corp., 7.250%
Due 11/01/02 102
100,000 RJR Nabisco, Inc., 8.625%
Due 12/01/02 103
100,000 Webb, Del E., 9.750%
Due 03/01/03 101
100,000 LCI Int'l, Inc., 7.250%
Due 06/15/07 99
1,015
U.S. Government Agency Obligations - 3.2%
100,000 Federal Home Loan Bank,
6.44% Due 11/8/05 97
Mortgage Obligations - 0.5%
15,215 GNMA, 8.50%,
Due 07/15/21 16
Demand Notes - 10.9%
109,700 American Family 110
117,400 Johnson Controls 117
105,200 Warner Lambert 105
332
Total Investments - 98.7%
(Cost $3,036)(a) 3,015
Other Assets Less Liabilities - 1.3% 42
Net Assets - 100% $3,057
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $11 and aggregate gross unrealized depreciation is $32,
resulting in net unrealized depreciation of $21 (in thousands).
See accompanying notes to financial statements
Page 22
Schedule of Investments (unaudited)
June 30, 1997
MONETTA GOVERNMENT MONEY MARKET FUND
Shares or
Principal Value
Amount (In Thousands)
<TABLE>
<CAPTION>
<S> <C>
GOVERNMENT OBLIGATIONS - 61.7%
U.S. Treasury Bills - 61.7%
490,000 Due 07/03/97 $490
575,000 Due 07/24/97 573
1,455,000 Due 09/18/97 1,438
735,000 Due 11/13/97 720
3,221
GOVERNMENT AGENCIES - 38.4%
Federal Farm Credit Discount Note - 22.9%
1,070,000 Due 07/14/97 1,068
130,000 Due 08/06/97 129
1,197
Farmer MAC Discount Note - 15.5%
810,000 Due 07/07/97 810
Total Investments - 100.1%(a) 5,228
Other Assets Less Liabilities - (0.1)% (5)
Net Assets - 100% $5,223
</TABLE>
(a) Cost is identical for book and tax purposes.
See accompanying notes to financial statements
Page 23
Statements of Assets and Liabilities
June 30, 1997 (unaudited)
(In Thousands)
Monetta Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $131,009)
(Note 1) $157,246
Cash 82
Interest and dividends receivable 79
Receivable for securities sold 2,203
Total Assets 159,610
Liabilities:
Payables:
Custodial bank 0
Investment advisory fees (Note 2) 162
Investments purchased 690
Accrued expenses 210
Total liabilities 1,062
Net assets $158,548
Analysis of net assets:
Paid in capital (b) 126,851
Accumulated undistributed net investment income 26
Accumulated undistributed net realized gain (loss) 5,434
Net unrealized appreciation (depreciation) on
investments 26,237
Net assets $158,548
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 8,950 shares of beneficial interest issued and
outstanding respectively) $17.71
</TABLE>
Small-Cap Equity Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $528)
(Note 1) $628
Cash (a)
Interest and dividends receivable (a)
Receivable for securities sold 0
Total Assets 628
Liabilities:
Payables:
Custodial bank 0
Investment advisory fees (Note 2) 0
Investments purchased 0
Accrued expenses 1
Total liabilities 1
Net assets $627
Analysis of net assets:
Paid in capital (b) 534
Accumulated undistributed net investment income (1)
Accumulated undistributed net realized gain (loss) (6)
Net unrealized appreciation (depreciation) on
investments 100
Net assets $627
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 53.06 shares of beneficial interest issued and
outstanding respectively) $11.82
</TABLE>
Mid-Cap Equity Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $17,380)
(Note 1) $20,393
Cash 21
Interest and dividends receivable 14
Receivable for securities sold 0
Total Assets 20,428
Liabilities:
Payables:
Custodial bank 0
Investment advisory fees (Note 2) 12
Investments purchased 0
Accrued expenses 27
Total liabilities 39
Net assets $20,389
Analysis of net assets:
Paid in capital (b) 14,727
Accumulated undistributed net investment income (14)
Accumulated undistributed net realized gain (loss) 2,663
Net unrealized appreciation (depreciation) on
investments 3,013
Net assets $20,389
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 1,213.8 shares of beneficial interest issued and
outstanding respectively) $16.80
</TABLE>
Page 24
Large-Cap Equity Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $3,496)
(Note 1) $3,841
Cash 2
Interest and dividends receivable 6
Receivable for securities sold 0
Total Assets 3,849
Liabilities:
Payables:
Custodial bank 0
Investment advisory fees (Note 2) 2
Investments purchased 0
Accrued expenses 7
Total liabilities 9
Net assets $3,840
Analysis of net assets:
Paid in capital (b) 3,182
Accumulated undistributed net investment income 3
Accumulated undistributed net realized gain (loss) 310
Net unrealized appreciation (depreciation) on
investments 345
Net assets $3,840
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 271.5 shares of beneficial interest issued and
outstanding respectively) $14.14
</TABLE>
Balanced Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $7,996)
(Note 1) $8,587
Cash 0
Interest and dividends receivable 43
Receivable for securities sold 86
Total Assets 8,716
Liabilities:
Payables:
Custodial bank 5
Investment advisory fees (Note 2) 3
Investments purchased 0
Accrued expenses 12
Total liabilities 20
Net assets $8,696
Analysis of net assets:
Paid in capital (b) 8,009
Accumulated undistributed net investment income 6
Accumulated undistributed net realized gain (loss) 90
Net unrealized appreciation (depreciation) on
investments 591
Net assets $8,696
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 632.5 shares of beneficial interest issued and
outstanding respectively) $13.75
</TABLE>
Intermediate Bond Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $3,036)
(Note 1) $3,015
Cash 0
Interest and dividends receivable 47
Receivable for securities sold 0
Total Assets 3,062
Liabilities:
Payables:
Custodial bank 2
Investment advisory fees (Note 2) (a)
Investments purchased 0
Accrued expenses 3
Total liabilities 5
Net assets $3,057
Analysis of net assets:
Paid in capital (b) 3,067
Accumulated undistributed net investment income 2
Accumulated undistributed net realized gain (loss) 9
Net unrealized appreciation (depreciation) on
investments (21)
Net assets $3,057
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 298.8 shares of beneficial interest issued and
outstanding respectively) $10.23
</TABLE>
Government Money Market Fund
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments at market value (cost: $5,228)
(Note 1) $5,228
Cash 0
Interest and dividends receivable 0
Receivable for securities sold 0
Total Assets 5,228
Liabilities:
Payables:
Custodial bank (a)
Investment advisory fees (Note 2) 0
Investments purchased 0
Accrued expenses 5
Total liabilities 5
Net assets $5,223
Analysis of net assets:
Paid in capital (b) 5,223
Accumulated undistributed net investment income 0
Accumulated undistributed net realized gain (loss) 0
Net unrealized appreciation (depreciation) on
investments 0
Net assets $5,223
Net asset value, offering price, and redemption
price per share(13,351.9 shares of capital stock
and 5,223 shares of beneficial interest issued and
outstanding respectively) $1.00
</TABLE>
See accompanying notes to financial statements
(a) Rounds to less than $1,000
(b) Amount for Monetta Fund represents $89 of $0.01 par value and
$126,762 of additional paid in capital, 100 million shares are
authorized. Each fund of Monetta Trust has an unlimited number of no
par value shares of beneficial interest authorized.
Page 25
Statements of Operations
Six Months Ended June 30, 1997 (unaudited)
(In Thousands)
Monetta Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $520
Dividend 234
Miscellaneous income 556
Total investment income 1,310
Expenses:
Investment advisory fee (Note 2) 830
Distribution expense 0
Custodial fees and bank cash management fee 29
Transfer and shareholder servicing agent fee 425
Other 0
Total expenses 1,284
Expenses waived and reimbursed 0
Expenses net of waived and reimbursed expenses 1,284
Net investment income (loss) 26
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 113,488
Cost of securities sold 104,998
Net realized gain (loss) on investments 8,490
Net unrealized appreciation (depreciation) on investment:
Beginning of period 18,128
End of period 26,237
Net change in net unrealized appreciation/depreciation on investments during
the period
8,109
Net realized and unrealized gain (loss) on investments 16,599
Net increase in net assets from operations $16,625
</TABLE>
Small-Cap Equity Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $2
Dividend (a)
Miscellaneous income 0
Total investment income 2
Expenses:
Investment advisory fee (Note 2) 1
Distribution expense (a)
Custodial fees and bank cash management fee 1
Transfer and shareholder servicing agent fee 1
Other 0
Total expenses 3
Expenses waived and reimbursed 0
Expenses net of waived and reimbursed expenses 3
Net investment income (loss) (1)
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 79
Cost of securities sold 85
Net realized gain (loss) on investments (6)
Net unrealized appreciation (depreciation) on investment:
Beginning of period 0
End of period 100
Net change in net unrealized appreciation/depreciation on investments during
the period
100
Net realized and unrealized gain (loss) on investments 94
Net increase in net assets from operations $93
</TABLE>
Mid-Cap Equity Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $40
Dividend 55
Miscellaneous income 1
Total investment income 96
Expenses:
Investment advisory fee (Note 2) 70
Distribution expense 19
Custodial fees and bank cash management fee 5
Transfer and shareholder servicing agent fee 18
Other 0
Total expenses 112
Expenses waived and reimbursed 0
Expenses net of waived and reimbursed expenses 112
Net investment income (loss) (16)
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 12,884
Cost of securities sold 10,389
Net realized gain (loss) on investments 2,495
Net unrealized appreciation (depreciation) on investment:
Beginning of period 3,183
End of period 3,013
Net change in net unrealized appreciation/depreciation on investments during
the period
(170)
Net realized and unrealized gain (loss) on investments 2,325
Net increase in net assets from operations $2,309
</TABLE>
Page 26
Large-Cap Equity Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $11
Dividend 16
Miscellaneous income 0
Total investment income 27
Expenses:
Investment advisory fee (Note 2) 12
Distribution expense 4
Custodial fees and bank cash management fee 3
Transfer and shareholder servicing agent fee 6
Other (a)
Total expenses 25
Expenses waived and reimbursed 0
Expenses net of waived and reimbursed expenses 25
Net investment income (loss) 2
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 1,734
Cost of securities sold 1,436
Net realized gain (loss) on investments 298
Net unrealized appreciation (depreciation) on investment:
Beginning of period 210
End of period 345
Net change in net unrealized appreciation/depreciation on investments during
the period
135
Net realized and unrealized gain (loss) on investments 433
Net increase in net assets from operations $435
</TABLE>
Balanced Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $76
Dividend 14
Miscellaneous income (a)
Total investment income 90
Expenses:
Investment advisory fee (Note 2) 12
Distribution expense 7
Custodial fees and bank cash management fee 5
Transfer and shareholder servicing agent fee 9
Other (a)
Total expenses 33
Expenses waived and reimbursed 0
Expenses net of waived and reimbursed expenses 33
Net investment income (loss) 57
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 2,208
Cost of securities sold 2,129
Net realized gain (loss) on investments 79
Net unrealized appreciation (depreciation) on investment:
Beginning of period 115
End of period 591
Net change in net unrealized appreciation/depreciation on investments during
the period
476
Net realized and unrealized gain (loss) on investments 555
Net increase in net assets from operations $612
</TABLE>
Intermediate Bond Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $94
Dividend 0
Miscellaneous income 0
Total investment income 94
Expenses:
Investment advisory fee (Note 2) 6
Distribution expense 3
Custodial fees and bank cash management fee 1
Transfer and shareholder servicing agent fee 2
Other 0
Total expenses 12
Expenses waived and reimbursed (3)
Expenses net of waived and reimbursed expenses 9
Net investment income (loss) 85
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 858
Cost of securities sold 845
Net realized gain (loss) on investments 13
Net unrealized appreciation (depreciation) on investment:
Beginning of period 13
End of period 21
Net change in net unrealized appreciation/depreciation on investments during
the period
(8)
Net realized and unrealized gain (loss) on investments 5
Net increase in net assets from operations $90
</TABLE>
Government Money Market Fund
<TABLE>
<CAPTION>
<S> <C>
Investment income and expenses:
Investment income:
Interest $153
Dividend 0
Miscellaneous income (a)
Total investment income 153
Expenses:
Investment advisory fee (Note 2) 8
Distribution expense 2
Custodial fees and bank cash management fee 1
Transfer and shareholder servicing agent fee 10
Other 0
Total expenses 21
Expenses waived and reimbursed (11)
Expenses net of waived and reimbursed expenses 10
Net investment income (loss) 143
Realized and unrealized gain (loss) on investments:
Realized gains (loss) on investments:
Proceeds from sales 12,903
Cost of securities sold 12,903
Net realized gain (loss) on investments 0
Net unrealized appreciation (depreciation) on investment:
Beginning of period 0
End of period 0
Net change in net unrealized appreciation/depreciation on investments during
the period
0
Net realized and unrealized gain (loss) on investments 0
Net increase in net assets from operations $143
</TABLE>
*For period from 2/1/97 through 6/30/97
See accompanying notes to financial statements
(a) Rounds to less than $1,000
Page 27
Statements of Changes in Net Assets
Six Months Ended June 30, 1997 (unaudited) & Year Ended December 31, 1996
(In Thousands)
Monetta Fund
<TABLE>
<CAPTION>
From investments activities: 1997 1996
<S> <C> <C>
Operations:
Net investment income (loss) $26 (1,489)
Net realized gain (loss) on investments 8,490 (1,995)
Net change in net unrealized appreciation
(depreciation) on investments during
the period 8,109 8,722
Net increase (decrease) in net assets
from operations 16,625 5,238
Distribution from net investment income 0 0
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 16,625 5,238
From capital transactions (Note 3):
Proceeds from shares sold 4,004 19,940
Net asset value of shares issued through
dividend reinvestment 0 (a)
Cost of shares repurchased (73,598) (176,381)
Increase (decrease) in net assets
from capital transactions (69,594) (156,441)
Total increase (decrease) in net assets (52,969) (151,203)
Net assets at beginning of period 211,517 362,720
Net assets at end of period* $158,548 $211,517
</TABLE>
Small-Cap Equity Fund
<TABLE>
<CAPTION>
From investments activities: 1997**
<S> <C>
Operations:
Net investment income (loss) $(1)
Net realized gain (loss) on investments (6)
Net change in net unrealized appreciation
(depreciation) on investments during
the period 100
Net increase (decrease) in net assets
from operations 93
Distribution from net investment income 0
Distribution in excess of net investment
income 0
Distribution from net realized gains
on securities 0
Increase (decrease) in net assets
from investment activities 93
From capital transactions (Note 3):
Proceeds from shares sold 557
Net asset value of shares issued through
dividend reinvestment 0
Cost of shares repurchased (23)
Increase (decrease) in net assets
from capital transactions 534
Total increase (decrease) in net assets 627
Net assets at beginning of period 0
Net assets at end of period* $627
</TABLE>
Mid-Cap Equity Fund
<TABLE>
<CAPTION>
From investments activities: 1997 1996
<S> <C> <C>
Operations:
Net investment income (loss) $(16) $52
Net realized gain (loss) on investments 2,495 423
Net change in net unrealized appreciation
(depreciation) on investments during
the period (170) 2,890
Net increase (decrease) in net assets
from operations 2,309 3,365
Distribution from net investment income 0 (52)
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 2,309 3,313
From capital transactions (Note 3):
Proceeds from shares sold 3,047 5,820
Net asset value of shares issued through
dividend reinvestment 0 50
Cost of shares repurchased (2,305) (6,061)
Increase (decrease) in net assets
from capital transactions 742 (191)
Total increase (decrease) in net assets 3,051 3,122
Net assets at beginning of period 17,338 14,216
Net assets at end of period* $20,389 $17,338
</TABLE>
Page 28
Large-Cap Equity Fund
<TABLE>
<CAPTION>
From investments activities: 1997 1996
<S> <C> <C>
Operations:
Net investment income (loss) $2 5
Net realized gain (loss) on investments 298 160
Net change in net unrealized appreciation
(depreciation) on investments during
the period 135 147
Net increase (decrease) in net assets
from operations 435 312
Distribution from net investment income 0 (4)
Distribution in excess of net investment
income 0 0
Distribution from net realized gains
on securities 0 (141)
Increase (decrease) in net assets
from investment activities 435 167
From capital transactions (Note 3):
Proceeds from shares sold 1,712 1,496
Net asset value of shares issued through
dividend reinvestment 0 144
Cost of shares repurchased (595) (591)
Increase (decrease) in net assets
from capital transactions 1,117 1,049
Total increase (decrease) in net assets 1,552 1,216
Net assets at beginning of period 2,288 1,072
Net assets at end of period* $3,840 $2,288
</TABLE>
Balanced Fund
<TABLE>
<CAPTION>
From investments activities: 1997 1996
<S> <C> <C>
Operations:
Net investment income (loss) $57 13
Net realized gain (loss) on investments 79 76
Net change in net unrealized appreciation
(depreciation) on investments during
the period 476 94
Net increase (decrease) in net assets
from operations 612 183
Distribution from net investment income (52) (13)
Distribution in excess of net investment
income 0 0
Distribution from net realized gains
on securities 0 (61)
Increase (decrease) in net assets
from investment activities 560 109
From capital transactions (Note 3):
Proceeds from shares sold 6,375 1,941
Net asset value of shares issued through
dividend reinvestment 38 72
Cost of shares repurchased (613) (196)
Increase (decrease) in net assets
from capital transactions 5,800 1,817
Total increase (decrease) in net assets 6,360 1,926
Net assets at beginning of period 2,336 410
Net assets at end of period* $8,696 $2,336
</TABLE>
Intermediate Bond Fund
<TABLE>
<CAPTION>
From investments activities: 1997 1996
<S> <C> <C>
Operations:
Net investment income (loss) $85 190
Net realized gain (loss) on investments 13 (4)
Net change in net unrealized appreciation
(depreciation) on investments during
the period (8) (4)
Net increase (decrease) in net assets
from operations 90 182
Distribution from net investment income (84) (190)
Distribution in excess of net investment
income 0 (17)
Distribution from net realized gains
on securities 0 0
Increase (decrease) in net assets
from investment activities 6 (25)
From capital transactions (Note 3):
Proceeds from shares sold 390 653
Net asset value of shares issued through
dividend reinvestment 73 175
Cost of shares repurchased (181) (1,623)
Increase (decrease) in net assets
from capital transactions 282 (795)
Total increase (decrease) in net assets 288 (820)
Net assets at beginning of period 2,769 3,589
Net assets at end of period* $3,057 $2,769
</TABLE>
Government Money Market Fund
<TABLE>
<CAPTION>
From investments activities: 1997 1996
<S> <C> <C>
Operations:
Net investment income (loss) $143 0$292
Net realized gain (loss) on investments 0 0
Net change in net unrealized appreciation
(depreciation) on investments during
the period 0 0
Net increase (decrease) in net assets
from operations 143 292
Distribution from net investment income (143) (292)
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 transactions (Note 3):
Proceeds from shares sold 3,336 15,949
Net asset value of shares issued through
dividend reinvestment 132 268
Cost of shares repurchased (4,477) (14,378)
Increase (decrease) in net assets
from capital transactions (1,009) 1,839
Total increase (decrease) in net assets (1,009) 1,839
Net assets at beginning of period 6,232 4,393
Net assets at end of period* $5,223 $6,232
</TABLE>
See accompanying notes to financial statements
(a) Rounds to less than $1,000
* Including undistributed net investment income of $1 thousand for the
Mid-Cap Equity Fund at December 31, 1996.
** For period from 2/1/97 through 6/30/97
Page 29
Notes to Financial Statements
June 30, 1997
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:
Small-Cap Equity Fund. The primary objective of this fund is capital
appreciation. The Fund typically invests in companies with a market
capitalization of less than $1 billion.
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 typically 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 typically 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:
Page 30
(a) Securities Valuation
Investments are stated at market value based on the last reported sale price on
national securities exchanges, or the NADSAQ 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.
(b) Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Funds' management to make estimates and
assumptions that affect reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements and the results of operations during the reporting period. Actual
results could differ from those estimates.
(c) 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, 1996, Monetta Fund and the Intermediate Bond Fund had
accumulated capital loss carry forward for tax purposes of $2,873,526 and
$3,497 respectively, which will expire on December 31, 2004. Net realized
losses of the funds may differ for financial statements and tax purposes
because of the deferral of post October 31 losses and wash sale losses for tax
purposes.
(d) 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. Bond Discount/Premium is
amortized on a straight line basis over the life of each applicable security.
(e) 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-tern
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.
Page 31
For the Monetta Fund, a permanent book and tax differences of $1,489,412 due to
the net operating loss for 1996 has been reclassified from accumulated
undistributed net investment income to paid in capital.
For the year ended December 31, 1996, Monetta Trust Large-Cap Equity Fund paid
long-term capital gains of $5,155.
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 advisor, Monetta
Financial Services, Inc. "Advisor". For six months ended June 30, 1997
remuneration required to be paid to all interested director or trustee has been
absorbed by the Advisor. Fees paid to outside Directors or Trustees have been
absorbed by the respective Funds.
Each Fund pays an investment advisory fee to the Advisor, based on that
Fund's individual net assets, payable monthly at the annual rate of 1% for
Monetta Fund, 0.75% for the Small-Cap, Mid-Cap and Large-Cap Equity Fund; 0.40%
for Balanced Fund; 0.35% for Intermediate Bond Fund and 0.25% for the
Government Money Market Fund. From these fees the Advisor pays all the Fund's
ordinary operating expenses other than the advisory fee, distribution charges
(trust only) and charges of the Fund's custodian and transfer agent.
Investment advisory fees waived for the six month period ended June 30, 1997
for the Intermediate Bond Fund were $3,557 of total fees of $5,583. Investment
advisory fees waived and expenses paid by the Advisor through June 30, 1997 for
the Government Money Market Fund were $7,753 and $535 respectively.
Additionally, brokerage commissions of $7,750 and $750 were paid by the Monetta
Fund and the Mid-Cap Equity Fund respectively to Monetta Investment Services,
L.L.C. (formerly Monetta Brokerage, Inc.) during the six months ended June 30,
1997.
Shares Owned
by the Advisor
<TABLE>
<CAPTION>
Shares % of Fund
<S> <C> <C>
Mid-Cap Fund 7,368 0.6%
Large-Cap Fund 11,048 4.1%
Balanced Fund 55,437 8.8%
Intermediate Bond Fund 76,191 25.5%
Government Money Market Fund 528,567 10.1%
</TABLE>
Page 32
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.
Small-Cap
Monetta Equity
Fund Fund
(In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
1996 Beginning shares 23,265
Shares sold 1,270
Shares issued upon dividend
reinvestment 0
Shares redeemed (11,183)
Net increase (decrease) in
shares outstanding (9,913)
1997 Beginning shares 13,352
Shares sold 252 55
Shares issued upon dividend
reinvestment 0 0
Shares redeemed (4,654) (2)
Net increase (decrease) in
shares outstanding (4,402) 53
Ending shares 8,950 53
</TABLE>
Mid-Cap Large-Cap
Equity Equity
Fund Fund
(In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
1996 Beginning shares 1,188 101
Shares sold 436 123
Shares issued upon dividend
reinvestment 3 12
Shares redeemed (457) (49)
Net increase (decrease) in
shares outstanding (18) 86
1997 Beginning shares 1,170 187
Shares sold 195 131
Shares issued upon dividend
reinvestment 0 0
Shares redeemed (151) (46)
Net increase (decrease) in
shares outstanding 44 85
Ending shares 1,214 272
</TABLE>
Intermediate
Balanced Bond
Fund Fund
(In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
1996 Beginning shares 39 350
Shares sold 157 64
Shares issued upon dividend
reinvestment 6 17
Shares redeemed (17) (160)
Net increase (decrease) in
shares outstanding 146 (79)
1997 Beginning shares 185 271
Shares sold 491 38
Shares issued upon dividend
reinvestment 3 7
Shares redeemed (46) (17)
Net increase (decrease) in
shares outstanding 448 28
Ending shares 633 299
</TABLE>
Government
Money Market
Fund
(In Thousands)
<TABLE>
<CAPTION>
<S> <C>
1996 Beginning shares 4,393
Shares sold 15,949
Shares issued upon dividend
reinvestment 268
Shares redeemed (14,378)
Net increase (decrease) in
shares outstanding 1,839
1997 Beginning shares 6,232
Shares sold 3,336
Shares issued upon dividend
reinvestment 132
Shares redeemed (4,477)
Net increase (decrease) in
shares outstanding (1,009)
Ending shares 5,223
</TABLE>
4. PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities for the six
months ended June 30, 1997 excluding short-term securities were: Monetta Fund
$113,488,036 and $60,203,236; Small-Cap Fund $78,738 and $565,410; Mid-Cap Fund
$12,883,672 and $11,691,831; Large-Cap Fund $1,734,087 and $2,761,927; Balanced
Fund $220,758 and $7,827,088; and Intermediate Bond Fund $857,588 and
$1,023,060. The cost of purchases and proceeds from the sales of government
securities included in the preceding numbers are as follows: Balanced Fund
$400,625 and $2,131,787; and Intermediate Bond Fund $681,790 and $704,320.
5. DISTRIBUTION PLAN:
The Trust and its shareholders have adopted a service and distribution
plan (the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940. The Plan permits the participating Funds to pay certain expenses
associated with the distribution of their shares. Annual fees under the Plan
of up to .25% for the Small-Cap, Mid-Cap, Large-Cap, Balanced, and Intermediate
Funds and up to .10% for the Government Money Market Fund are accrued daily.
The distributor is Funds Distributor Inc.
Page 33
6. FINANCIAL HIGHLIGHTS:
MONETTA FUND
Financial highlights for Monetta Fund for a share of capital stock outstanding
throughout the period is presented below:
1997** 1996
<TABLE>
<CAPTION>
<S> <C> <C>
Net asset value at beginning of period $15.842 $15.591
Net investment income (loss) .002 (.079)
Net realized and unrealized gain
(loss) on investments 1.870 .330
Total from investment operations: 1.872 .251
Less:
Distributions from net investment
income 0 0
Distributions in excess of net
investment income 0 0
Distributions from net realized
gains on securities 0 0
Total distributions 0 0
Net asset value at end of period $17.714 $15.842
Total return 11.81% 1.60%
Ratio to average net assets:
Expenses* 1.57% 1.38%
Net investment income* .02% (.51)%
Avg. Comm. Paid - per equity trade(a) $.061 $.063
Portfolio turnover 40.8% 204.8%
Net assets ($ millions) $158.5 $211.5
</TABLE>
1995 1994
<TABLE>
<CAPTION>
<S> <C> <C>
Net asset value at beginning of period $14.515 $15.539
Net investment income (loss) .029 (.026)
Net realized and unrealized gain
(loss) on investments 4.075 (.938)
Total from investment operations: 4.104 (.964)
Less:
Distributions from net investment
income (.028) 0
Distributions in excess of net
investment income (3.000) (.060)
Distributions from net realized
gains on securities 0 0
Total distributions (3.028) (.060)
Net asset value at end of period $15.591 $14.515
Total return 28.02% (6.21)%
Ratio to average net assets:
Expenses* 1.36% 1.35%
Net investment income* .18% (.15)%
Avg. Comm. Paid - per equity trade(a) --- ---
Portfolio turnover 272.0% 191.3%
Net assets ($ millions) $362.7 $364.9
</TABLE>
1993 1992
<TABLE>
<CAPTION>
<S> <C> <C>
Net asset value at beginning of period $15.992 $15.731
Net investment income (loss) (.028) .006
Net realized and unrealized gain
(loss) on investments .105 .855
Total from investment operations: .077 .861
Less:
Distributions from net investment
income 0 (.006)
Distributions in excess of net
investment income (.475) (.594)
Distributions from net realized
gains on securities (.055) 0
Total distributions (.530) (.600)
Net asset value at end of period $15.539 $15.992
Total return 0.49% 5.49%
Ratio to average net assets:
Expenses* 1.38% 1.45%
Net investment income* (.19)% .16%
Avg. Comm. Paid - per equity trade(a) --- ---
Portfolio turnover 226.9% 126.6%
Net assets ($ millions) $524.3 $408.0
</TABLE>
Page 34
1991 1990
<TABLE>
<CAPTION>
<S> <C> <C>
Net asset value at beginning of period $10.963 $10.441
Net investment income (loss) .081 .103
Net realized and unrealized gain
(loss) on investments 6.037 1.106
Total from investment operations: 6.118 1.209
Less:
Distributions from net investment
income (.081) (.103)
Distributions in excess of net
investment income (1.208) (.584)
Distributions from net realized
gains on securities (.061) 0
Total distributions (1.350) (.687)
Net asset value at end of period $15.731 $10.963
Total return 55.90% 11.37%
Ratio to average net assets:
Expenses* 1.42% 1.50%
Net investment income* .93% 1.09%
Avg. Comm. Paid - per equity trade(a) --- ---
Portfolio turnover 153.8% 206.5%
Net assets ($ millions) $57.1 $6.1
</TABLE>
1989 1988
<TABLE>
<CAPTION>
<S> <C> <C>
Net asset value at beginning of period $9.933 $9.649
Net investment income (loss) .219 .106
Net realized and unrealized gain
(loss) on investments 1.274 2.158
Total from investment operations: 1.493 2.264
Less:
Distributions from net investment
income (.219) (.106)
Distributions in excess of net
investment income (.766) (1.874)
Distributions from net realized
gains on securities 0 0
Total distributions (.985) (1.980)
Net asset value at end of period $10.441 $9.933
Total return 15.20% 23.07%
Ratio to average net assets:
Expenses* 1.57% 1.50%
Net investment income* 2.18% .96%
Avg. Comm. Paid - per equity trade(a) --- ---
Portfolio turnover 258.4% 170.4%
Net assets ($ millions) $3.5 $2.6
</TABLE>
1987
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $9.670
Net investment income (loss) .113
Net realized and unrealized gain
(loss) on investments .016
Total from investment operations: .129
Less:
Distributions from net investment
income (.150)
Distributions in excess of net
investment income 0
Distributions from net realized
gains on securities 0
Total distributions (.150)
Net asset value at end of period $9.649
Total return 1.54%
Ratio to average net assets:
Expenses* 2.31%
Net investment income* 1.33%
Avg. Comm. Paid - per equity trade(a) ---
Portfolio turnover 333.5%
Net assets ($ millions) $2.1
</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
(a) Represents the average commissions paid on equity transactions entered into
during the period where commissions were applicable. This disclosure is not
applicable for periods prior to 1996.
The per share ratios are calculated using the weighted average number of shares
outstanding during the period.
Page 35
Notes to Financial Statements
June 30, 1997
Financial highlights for each Fund of the Trust for a share outstanding
throughout the period are as follows:
Small-Cap
Equity Fund
(Incept. 2/1/97)
1997**
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $10.000
Net investment income (.031)
Net realized and unrealized gain (loss)on investments 1.852
Total from investment operations 1.821
Less:
Distributions from net investment income 0
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions 0
Net asset value at end of period $11.821
Total return* 18.20%
Ratios to average net assets:
Expenses 1.84%
Net investment income (.30)%
Avg. Comm paid-per equity trade(s) .047
Portfolio turnover 19.7%
Net assets ($ thousands) $627
</TABLE>
Page 36
Mid-Cap
Equity Fund
1997**
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $14.814
Net investment income (.013)
Net realized and unrealized gain (loss)on investments 1.997
Total from investment operations 1.984
Less:
Distributions from net investment income 0
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions 0
Net asset value at end of period $16.798
Total return* 13.44%
Ratios to average net assets:
Expenses 1.26%
Net investment income (.09)%
Avg. Comm paid-per equity trade(s) $.069
Portfolio turnover 70.8%
Net assets ($ thousands) $20,389
</TABLE>
1996
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $11.962
Net investment income .044
Net realized and unrealized gain (loss)on investments 2.852
Total from investment operations 2.896
Less:
Distributions from net investment income (.044)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.044)
Net asset value at end of period $14.814
Total return* 24.20%
Ratios to average net assets:
Expenses 1.23%
Net investment income 0.32%
Avg. Comm paid-per equity trade(s) $.066
Portfolio turnover 93.3%
Net assets ($ thousands) $17,338
</TABLE>
1995
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $12.199
Net investment income .059
Net realized and unrealized gain (loss)on investments 2.874
Total from investment operations 2.933
Less:
Distributions from net investment income (.050)
Distributions in excess of net investment income (2.990)
Distributions from net realized gains on securities (.130)
Total distributions (3.170)
Net asset value at end of period $11.962
Total return* 24.54%
Ratios to average net assets:
Expenses 1.25%
Net investment income 0.44%
Avg. Comm paid-per equity trade(s) ---
Portfolio turnover 254.4%
Net assets ($ thousands) $14,216
</TABLE>
1994
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $12.537
Net investment income .071
Net realized and unrealized gain (loss)on investments .193
Total from investment operations .264
Less:
Distributions from net investment income (.069)
Distributions in excess of net investment income (.533)
Distributions from net realized gains on securities 0
Total distributions (.602)
Net asset value at end of period $12.199
Total return* 2.17%
Ratios to average net assets:
Expenses 1.30%
Net investment income 0.57%
Avg. Comm paid-per equity trade(s) ---
Portfolio turnover 210.0%
Net assets ($ thousands) $11,736
</TABLE>
3/1/93
Through
12/31/93
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $10.000
Net investment income .006
Net realized and unrealized gain (loss)on investments 3.531
Total from investment operations 3.537
Less:
Distributions from net investment income .006
Distributions in excess of net investment income .994
Distributions from net realized gains on securities 0
Total distributions 1.000
Net asset value at end of period $12.537
Total return* 35.40%
Ratios to average net assets:
Expenses 1.12%
Net investment income 0.07%
Avg. Comm paid-per equity trade(s) ---
Portfolio turnover 128.1%
Net assets ($ thousands) $9,841
</TABLE>
Large-Cap
Equity Fund
1997**
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $12.266
Net investment income .012
Net realized and unrealized gain (loss)on investments 1.866
Total from investment operations 1.878
Less:
Distributions from net investment income 0
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions 0
Net asset value at end of period $14.144
Total return* 15.24%
Ratios to average net assets:
Expenses 1.52%
Net investment income .09%
Avg. Comm paid-per equity trade(s) $.051
Portfolio turnover 61.9%
Net assets ($ thousands) $3,840
</TABLE>
1996
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $10.571
Net investment income .023
Net realized and unrealized gain (loss)on investments 2.928
Total from investment operations 2.951
Less:
Distributions from net investment income (.023)
Distributions in excess of net investment income (1.188)
Distributions from net realized gains on securities (.045)
Total distributions (1.256)
Net asset value at end of period $12.266
Total return* 28.20%
Ratios to average net assets:
Expenses 1.51%
Net investment income 0.31%
Avg. Comm paid-per equity trade(s) $.051
Portfolio turnover 152.7%
Net assets ($ thousands) $2,288
</TABLE>
9/1/95
Through
12/31/95
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period* $10.00
Net investment income .005
Net realized and unrealized gain (loss)on investments .570
Total from investment operations .575
Less:
Distributions from net investment income (.004)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.004)
Net asset value at end of period $10.571
Total return* 5.74%
Ratios to average net assets:
Expenses 0.69%
Net investment income 0.05%
Avg. Comm paid-per equity trade(s) ---
Portfolio turnover 38.2%
Net assets ($ thousands) $1,072
</TABLE>
* Ratios and total return for the year of inception are calculated from the
date of inception to the end of the period.
**Unaudited.
(a) Represents the average commissions paid on equity transactions entered
into during the period where commissions were applicable.
This disclosure is not applicable for periods prior to 1996.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period.
Page 37
Balanced Fund
1997**
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $12.643
Net investment income .124
Net realized and unrealized gain (loss) on investments 1.094
Total from investment operations 1.218
Less:
Distributions from net investment income (.112)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.112)
Net asset value at end of period $13.749
Total return* 9.52%
Ratios to average net assets:
Expenses - Net 1.09%
Expenses - Gross (a) N/A
Net investment income .94%
Net investment income - gross (a) N/A
Avg. Comm paid-per equity trade (b) $.054
Portfolio turnover 40.6%
Net assets ($ thousands) $8,696
</TABLE>
1996
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $10.605
Net investment income .132
Net realized and unrealized gain (loss) on investments 2.598
Total from investment operations 2.730
Less:
Distributions from net investment income (.132)
Distributions in excess of net investment income (.560)
Distributions from net realized gains on securities 0
Total distributions (.692)
Net asset value at end of period $12.643
Total return* 25.94%
Ratios to average net assets:
Expenses - Net 1.40%
Expenses - Gross (a) N/A
Net investment income 1.54%
Net investment income - gross (a) N/A
Avg. Comm paid-per equity trade (b) $.056
Portfolio turnover 117.8%
Net assets ($ thousands) $2,336
</TABLE>
9/1/95
Through
12/31/95
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $10.000
Net investment income .009
Net realized and unrealized gain (loss) on investments .602
Total from investment operations .611
Less:
Distributions from net investment income (.004)
Distributions in excess of net investment income (.002)
Distributions from net realized gains on securities 0
Total distributions (.006)
Net asset value at end of period $10.605
Total return* 6.16%
Ratios to average net assets:
Expenses - Net 0.91%
Expenses - Gross (a) N/A
Net investment income 0.08%
Net investment income - gross (a) N/A
Avg. Comm paid-per equity trade (b) ---
Portfolio turnover 54.8%
Net assets ($ thousands) $410
</TABLE>
Page 38
Intermediate Bond Fund
1997**
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $10.208
Net investment income .301
Net realized and unrealized gain (loss) on investments .015
Total from investment operations .316
Less:
Distributions from net investment income (.295)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.295)
Net asset value at end of period $10.229
Total return* 3.14%
Ratios to average net assets:
Expenses - Net .61%
Expenses - Gross (a) .85%
Net investment income 2.96%
Net investment income - gross (a) 2.71%
Avg. Comm paid-per equity trade (b) $.054
Portfolio turnover 33.6%
Net assets ($ thousands) $3,057
</TABLE>
1996
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $10.244
Net investment income .612
Net realized and unrealized gain (loss) on investments .019
Total from investment operations .631
Less:
Distributions from net investment income (.612)
Distributions in excess of net investment income (.055)
Distributions from net realized gains on securities 0
Total distributions (.667)
Net asset value at end of period $10.208
Total return* 6.46%
Ratios to average net assets:
Expenses - Net 0.55%
Expenses - Gross (a) .85%
Net investment income 5.75%
Net investment income - gross (a) 5.45%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover 28.9%
Net assets ($ thousands) $2,769
</TABLE>
1995
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $9.624
Net investment income .655
Net realized and unrealized gain (loss) on investments .740
Total from investment operations 1.395
Less:
Distributions from net investment income (.655)
Distributions in excess of net investment income (.120)
Distributions from net realized gains on securities 0
Total distributions (.775)
Net asset value at end of period $10.244
Total return* 14.84%
Ratios to average net assets:
Expenses - Net 0.27%
Expenses - Gross (a) .75%
Net investment income 5.94%
Net investment income - gross (a) 5.46%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover 75.1%
Net assets ($ thousands) $3,589
</TABLE>
1994
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $10.345
Net investment income .589
Net realized and unrealized gain (loss) on investments (.690)
Total from investment operations (.101)
Less:
Distributions from net investment income (.580)
Distributions in excess of net investment income (.040)
Distributions from net realized gains on securities 0
Total distributions (.620)
Net asset value at end of period $9.624
Total return* 1.04%
Ratios to average net assets:
Expenses - Net 0.28%
Expenses - Gross (a) .88%
Net investment income 5.94%
Net investment income - gross (a) 5.34%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover 94.5%
Net assets ($ thousands) $3,010
</TABLE>
3/5/93
Through
12/31/93
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $10.000
Net investment income .357
Net realized and unrealized gain (loss) on investments .447
Total from investment operations .804
Less:
Distributions from net investment income (.357)
Distributions in excess of net investment income (.102)
Distributions from net realized gains on securities 0
Total distributions (.459)
Net asset value at end of period $10.345
Total return* 8.17%
Ratios to average net assets:
Expenses - Net 0.28%
Expenses - Gross (a) .75%
Net investment income 4.13%
Net investment income - gross (a) 3.66%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover 32.3%
Net assets ($ thousands) $2,959
</TABLE>
Government Money Market Fund
1997**
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $1.000
Net investment income .025
Net realized and unrealized gain (loss) on investments 0
Total from investment operations .025
Less:
Distributions from net investment income (.025)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.025)
Net asset value at end of period $1.000
Total return* 2.49%
Ratios to average net assets:
Expenses - Net .36%
Expenses - Gross (a) .73%
Net investment income 2.5%
Net investment income - gross (a) 2.09%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover N/A
Net assets ($ thousands) $5,223
</TABLE>
1996
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $1.000
Net investment income .049
Net realized and unrealized gain (loss) on investments 0
Total from investment operations .049
Less:
Distributions from net investment income (.049)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.049)
Net asset value at end of period $1.000
Total return* 5.06%
Ratios to average net assets:
Expenses - Net 0.31%
Expenses - Gross (a) .67%
Net investment income 4.95%
Net investment income - gross (a) 4.59%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover N/A
Net assets ($ thousands) $6,232
</TABLE>
1995
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $1.000
Net investment income .059
Net realized and unrealized gain (loss) on investments 0
Total from investment operations .059
Less:
Distributions from net investment income (.059)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.059)
Net asset value at end of period $1.000
Total return* 5.87%
Ratios to average net assets:
Expenses - Net 0.07%
Expenses - Gross (a) .59%
Net investment income 5.69%
Net investment income - gross (a) 5.17%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover N/A
Net assets ($ thousands) $4,393
</TABLE>
1994
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $1.000
Net investment income .040
Net realized and unrealized gain (loss) on investments 0
Total from investment operations .040
Less:
Distributions from net investment income (.040)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.040)
Net asset value at end of period $1.000
Total return* 4.04%
Ratios to average net assets:
Expenses - Net 0.0%
Expenses - Gross (a) .66%
Net investment income 4.04%
Net investment income - gross (a) 3.39%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover N/A
Net assets ($ thousands) $3,315
</TABLE>
3/1/96
Through
12/31/93
<TABLE>
<CAPTION>
<S> <C>
Net asset value at beginning of period $1.000
Net investment income .023
Net realized and unrealized gain (loss) on investments 0
Total from investment operations .023
Less:
Distributions from net investment income (.023)
Distributions in excess of net investment income 0
Distributions from net realized gains on securities 0
Total distributions (.023)
Net asset value at end of period $1.000
Total return* 2.21%
Ratios to average net assets:
Expenses - Net 0.03%
Expenses - Gross (a) .69%
Net investment income 2.32%
Net investment income - gross (a) 1.66%
Avg. Comm paid-per equity trade (b) N/A
Portfolio turnover N/A
Net assets ($ thousands) $1,859
</TABLE>
*ratios and total return for year of inception are calculated from date of
inception to the end of the period.
**unaudited
(a) ratios of expenses and net income adjusted to reflect advisory fees and
charges assumed by the investment advisor.
(b) represents the average commissions paid on equity transactions entered into
during the period where commissions were applicable. This disclosure is not
applicable for periods prior to 1996.
The per share rates are calculated using the weighted average number of shares
outstanding during the period.
Page 39
Semi-Annual Report
June 30, 1997
MONETTA FAMILY OF FUNDS
Monetta Fund, Inc.
Monetta Small-Cap Equity Fund
Monetta Mid-Cap Equity Fund
Monetta Large-Cap Equity Fund
Monetta Balanced Fund
Monnetta Intermediate Bond Fund
Monetta Government Money Market Fund
Monetta Funds
1776-A South Naperville Road
Suite 207
Wheaton, Illinois 60187
1-800-MONETTA (666-3882)
Distributed by Funds Distributor, Inc.
