Monetta Family
Of Mutual Funds
No-Load
Monetta Fund
Monetta Trust
Small-Cap Equity Fund
Mid-Cap Equity Fund
Large-Cap Equity Fund
Balanced Fund
Intermediate Bond Fund
Government Money
Market Fund
1-800-MONETTA
WWW.MONETTA.COM
LOGO APPEARS HERE
Annual Report
December 31, 1999
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
Performance Highlights
<S> <C>
Monetta Fund 4
Monetta Small-Cap Equity Fund 5
Monetta Mid-Cap Equity Fund 6
Monetta Large-Cap Equity Fund 7
Monetta Balanced Fund 8
Monetta Intermediate Bond Fund 9
Monetta Government Money Market Fund 10
Schedule of Investments
Monetta Fund 11
Monetta Small-Cap Equity Fund 14
Monetta Mid-Cap Equity Fund 15
Monetta Large-Cap Equity Fund 17
Monetta Balanced Fund 18
Monetta Intermediate Bond Fund 19
Monetta Government Money Market Fund 19
Financial Statements
Statements of Assets & Liabilities 20
Statements of Operations 21
Statements of Changes in Net Assets 22
Notes to Financial Statements 24
Independent Auditors' Report 31
</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. Historically, small company stocks
have been more volatile than large company stocks, U. S. Government Bonds, and
Treasury Bills. An investment in the Government Money Market Fund is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
Government Agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
Excluding the Government Money Market Fund, the Monetta Funds, at the
discretion of the Portfolio Manager, may invest in Initial Public Offerings
(IPO's) which may significantly impact their performance. Due to the
speculative nature of IPO's, there can be no assurance that IPO participation
will continue and that IPO's will have a positive effect on Funds' performance.
References to individual securities are the views of the Advisor at the date
of this report and are subject to 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 performance data include Lipper Analytical Services, Inc., and
Frank Russell Company.
<Page2>
January 18, 2000
Dear Fellow Shareholders:
We are very pleased with our Funds' performance last year. All of the Fund's
returns exceeded their respective indices as we focused on investing in
industry leaders and companies that could benefit from the technology
revolution.
Last year's investment performance was dominated by the internet-driven
technology companies. Investors were fascinated with the communication
revolution and new money inflows poured into the top performing groups such as
industrial technology, telecommunications, media and the internet sectors.
Without the hot tech and telecom groups, the S&P 500 Index would have shown
little, if any, gain in 1999. In fact, this technology tide did not lift
all boats, but actually sank such key groups as pharmaceuticals, financials,
and home construction.
While technology and telecommunication stocks dominated the spotlight, a
handful of basic commodity sectors, especially in the aluminum and crude oil
industry, performed well as higher demand pushed these commodity prices
higher.
Last year was plagued by inflation jitters, Y2K fears, and a rising interest
rate environment. As a result, the bond market suffered its worst loss since
1994 and second worst performance since 1973. Currently there is no
indication that the Federal Reserve will stop raising interest rates, which
could have an adverse affect on market valuations.
The question on investors' minds is whether the technology sector can
continue to extend its gains into the future, or is this a bubble that will
burst?
We believe that the gains of last year do not necessarily rule out another
good year in 2000. The key will be to invest in those companies with real
earnings potential and solid business models. Some air, no doubt, will go
out of the bubble as the "dot coms" investment opportunities subside as the
traditional brick and mortar companies compete and consolidate. We feel,
however, that the internet age has just begun and the pieces needed to build
this massive infrastructure have only started to come together.
We are very excited about the introduction of our Monetta Express Children
Investment Program last year, which gets children involved in the investment
process and helps parents teach children about basic money management skills.
We encourage shareholders to visit our website at www.monetta.com for updated
information on Fund performance and up-to-date commentary on the current
market environment.
Thank you for being a member of the Monetta Family of Mutual Funds.
Best personal regards,
Robert S. Bacarella
President and Founder
<Page 3>
Monetta Fund Period ended 12/31/99
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation/Income $1.9 billion $135.7 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
1 Year 5 Year 10 Year
<S> <C> <C> <C>
Monetta Fund 51.80% 17.77% 14.61%
Russell 2000* 21.26% 16.69% 13.40%
</TABLE>
*Source Frank Russell Company
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period Monetta Russell
Equity Fund 2000
<S> <C> <C>
3/90 10536 9778.9
6/90 11782.4 10156.1
9/90 9509.58 7663.98
12/90 11136.7 8049.24
3/91 13199.2 10442.9
6/91 13595.2 10281.1
9/91 15434.6 11119.3
12/91 17360.8 11756.1
3/92 17471.9 12637.8
6/92 16357.2 11775.6
9/92 16843 12113
12/92 18313.4 13920.5
3/93 17099.3 14515.5
6/93 17225.8 14832.3
9/93 18566 16129.1
12/93 18404.4 16552.4
3/94 17918.5 16113.1
6/94 16947.4 15485.6
9/94 18140.5 16560.6
12/94 17260.6 16251
3/95 18924.6 17000.1
6/95 20232.3 18593.7
9/95 22753.2 20430
12/95 22097.9 20872.7
3/96 22438.2 21937.7
6/96 23133.8 23035.2
9/96 23092.2 23113.3
12/96 22454.8 24315.7
3/97 20824.6 23058
6/97 25106.1 26796
9/97 30124.8 30783.8
12/97 28335.4 29752.5
3/98 31452.3 32745
6/98 28631 31219.1
9/98 21902.8 24928.5
12/98 25775.2 28994.3
3/99 22880.6 27422.8
6/99 26189.2 31687
9/99 26498.2 29684.4
12/99 39127.2 35158.2
</TABLE>
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. The graph to the right compares the change in
value of a $10,000 investment in the Monetta Fund and the Russell 2000 Stock
Index, with dividend and capital gains reinvested. The Russell 2000 Stock
Index is a broad measure representative of the general market.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Telecommunication Equipment 21.2%
Software 16.1%
Computers 15.8%
Electronics 10.3%
Semiconducters 9.1%
Media 6.1%
All Other Industries 17.1%
(A) 4.3%
</TABLE>
(A) Short-term investments net of other assets and liabilities.
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Adelphia Business Solutions, Inc. 1.4%
Advanced Fibre Communications, Inc. 1.4%
RSA Security, Inc. 1.3%
Primus Telecommunications Group, Inc. 1.3%
Viatel, Inc. 1.2%
Total Top 5 Holdings 6.6%
</TABLE>
COMMENTARY
The Monetta Fund posted a return of 51.8% in 1999, far outpacing the 21.3%
return for the benchmark Russell 2000 Index. The Fund's 5 year and 10 year
annual returns of 17.8% and 14.6% respectively exceed the benchmark Russell
2000 Index returns.
Through mid-year, our technology and telecommunications stocks were among our
best performers. Given the favorable trends in these groups of strong
revenue and earnings growth, which are expected to continue through the year
2001, we increased our weightings in these groups. In the fourth quarter of
1999, the market's strong move was led by the technology, telecommunications,
media and biotech sectors, where the Fund had substantial weightings. This
is what drove the Monetta Fund's strong fourth quarter return of 47.7%.
A number of holdings posted returns of greater than 150% in 1999. Our
strongest performing stocks include Omnipoint (up 550%), Applied Micro Circuits
(up 431%) and M-Systems Flash Disk (up 353%). On December 31, 1999, they
represented 0.6%, 0.4% and 1.0%, respectively, of net assets.
While the valuation levels of some of our holdings have increased
dramatically, they are still very attractive on a historical basis versus
their large-cap peers. However, in an effort to maintain proper balance
within the portfolio we have trimmed back our successful holdings as they
have grown in proportion to the Fund's assets. We have also been very
aggressive in eliminating securities that exhibit any deterioration in
fundamentals.
Since we are not having any difficulty finding attractive small-cap stocks,
we have expanded the number of holdings in the Fund to participate in these
companies favorable long-term prospects.
Small-cap stocks, after underperforming large-cap stocks for several years,
began to outperform in the latter part of 1999, and many experts predict that
this will continue. We are excited about the opportunities the small-cap
universe offers as we enter the year 2000, and believe that the Monetta Fund is
exceptionally well positioned to benefit from a continuing rally in small-cap
stocks.
<Page 4>
Monetta Small-Cap Equity Fund Period ended 12/31/99
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $2.0 billion $5.3 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 2/1/97
<S> <C> <C>
Monetta Small-Cap
Equity Fund 62.91% 33.74%
Russell 2000* 21.26% 12.72%
</TABLE>
*Source Frank Russell Company.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period SMALL-CAP RUSSELL
Fund 2000
<S> <C> <C>
12/96 10000 10000
3/97 9490 9297
6/97 11820 10804
9/97 15089 12412
12/97 14716 11996
3/98 15956 13203
6/98 15317 12588
9/98 12237 10051
12/98 14278 11690
3/99 13223 11057
6/99 15930 12776
9/99 16057 11969
12/99 23260 14177
</TABLE>
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. The graph to the right compares the change in
value of a $10,000 investment in the Monetta Small-Cap Equity Fund and the
Russell 2000 Stock Index with dividend and capital gains reinvested. The
Russell 2000 index is a broad measure representative of the general market.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Telecommunications 19.4%
Computers 14.3%
Telecommunication Equipment 13.5%
Software 13.0%
Electronics 11.9%
Semiconductors 5.5%
All Other Industries 14.2%
(A) 8.2%
</TABLE>
(A) Short-term investments net of other assets and liabilities.
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
C-Cor.net Corp. 4.3%
QRS Corp. 3.9%
Adelphia Business Solutions, Inc. 3.6%
Symantec Corp. 3.3%
M-Systems Flash Disk Pioneers Ltd. 3.1%
Total Top 5 Holdings 18.2%
</TABLE>
COMMENTARY
The Monetta Small-Cap Equity Fund posted a strong return of 62.9% in 1999,
besting its Russell 2000 benchmark return of 21.3%. Since inception on
2/1/97, the Fund has posted an annualized return of 33.7%, which handily
outpaced the Russell 2000 return of 12.7%.
While 1999 was a good year for small-cap stocks in general, a large portion
of the gains were in small-cap growth stocks versus value stocks.
Specifically, the technology, telecommunication, media and biotech sectors
performed exceptionally well, where we had significant exposure, while
financial, industrial and retail stocks were among the lagging groups, where
we had little if any exposure. Investments in Initial Public Offerings, that
were sold on the day received, accounted for 4.9% of the 62.9% one-year return.
A number of individual stocks in the Fund posted spectacular returns in 1999.
Omnipoint (up 550%), Applied Micro Circuits (up 411%), E-TEK Dynamics (up
296%), and Powertel (up 261%) were among our strongest performing stocks. On
December 31, 1999, the stocks represented 1.6%, 2.4%, 1.5%, and 1.9%,
respectively, of net assets.
Since inception, the Monetta Small-Cap Equity Fund has been a concentrated
portfolio of between 25 and 35 positions. In the latter part of 1999, the
number of holdings increased somewhat due in part to the strong performance
of many of the holdings. The strong stocks were trimmed back, but not
eliminated, and the proceeds were used to purchase new securities. We
anticipate going forward that the number of holdings will move up slightly to
between 30 and 45 positions.
We believe that the technology and telecommunications groups will continue to
be leaders in 2000, and we will maintain a heavy weighting in these areas.
However, we will be alert to new opportunities in other groups as they develop.
We feel that there has never been a better time to be invested in the small-
cap investment area. Many of these companies are demonstrating superior
growth, and are always ripe to be acquired by a larger company at an
attractive premium. Our focus is to continue to identify the most attractive
investments in the small-cap universe.
<Page 5>
Monetta Mid-Cap Equity Fund Period ended 12/31/99
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $10.6 billion $19.5 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 5 Year 3/1/93
<S> <C> <C> <C>
Monetta Mid-Cap
Equity Fund 53.39% 24.87% 23.37%
S&P 400 Mid-Cap* 13.35% 21.28% 16.14%
</TABLE>
*Source Lipper Analytical Services, Inc.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period MID-CAP S&P 400
FUND
<S> <C> <C>
3/1/93 10000 10000
3/93 11670 10220
6/93 11880 10455
9/93 13120 10978
12/93 13540 11274
3/94 13475 10793
6/94 13109 10399
9/94 13887 11103
12/94 13835 10817
3/95 14835 11692
6/95 16536 12723
9/95 17603 13965
12/95 17233 14165
3/96 18717 15037
6/96 19106 15470
9/96 19855 15920
12/96 21402 16885
3/97 21314 16634
6/97 24277 19085
9/97 27761 22145
12/97 27639 22329
3/98 30239 24787
6/98 29362 24257
9/98 22920 20800
12/98 27408 26472
3/99 27154 24783
6/99 30639 28290
9/99 28862 25840
12/99 41719 30192
</TABLE>
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. The graph above to the right compares the
change in value of a $10,000 investment in the Monetta Mid-Cap Equity Fund to
the S&P 400. The S&P 400 index is a broad measure representative of the
general market.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Software Internet/Content 13.0%
Software Applications/Enterprise Service 10.1%
Semiconductors 10.1%
Telecommunications 9.9%
Electronics 8.4%
Telecommunication Equipment 6.1%
Media 5.8%
All Other Industries 27.3%
(A) 9.3%
</TABLE>
(A) Short-term investments net of other assets and liabilities.
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Exodus Communications, Inc. 1.8%
Qualcomm, Inc. 1.8%
Biogen, Inc. 1.7%
Siebel Systems, Inc. 1.7%
Western Wireless Corp. 1.7%
Total Top 5 Holdings 8.7%
</TABLE>
COMMENTARY
The Mid-Cap Fund posted a record high fourth quarter return of 44.6%,
propelling the full year 1999 return to 53.4%. The Fund's performance
significantly exceeded its benchmark (S&P 400 Mid-Cap Index) return of
13.4%.
The largest impact on Fund performance was its technology weightings and,
specifically, the performance of one stock - Qualcomm, Inc.. Last year total
Fund gains were approximately $6.1 million of which Qualcomm, Inc. represented
$1.2 million. Other top performing stocks included Echostar Communication
Corp., Exodus Communications, Verticalnet Inc., and Comverse Technology. On
December 31, 1999, these stocks represented 1.5%, 1.8%, 1.7%, and 0.7%,
respectively, of net assets.
Many security holdings were trimmed last year to maintain adequate
diversification, lock in gains and reduce overall Fund volatility. As the
stock valuations moved higher, we increased the number of issues in the Fund
to minimize the impact of any one stock position on overall Fund performance.
At year-end, approximately 91% of the portfolio was invested in stocks. We
began to gradually invest in the oil sector while maintaining the overall
technology weightings especially in the telecommunications area. We have
generally avoided the E-Commerce area in favor of more internet
infrastructure type investments.
We continue to believe the technology sector offers above average growth
opportunities. The internet age has just begun and billions of dollars will
be spent on switches, bandwidth, storage, and advertising space.
<Page 6>
Monetta Large-Cap Equity Fund Period ended 12/31/99
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $126.5 billion $9.3 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 3 Year 9/1/95
<S> <C> <C> <C>
Monetta Large-Cap
Equity Fund 53.98% 28.57% 27.63%
S&P 500* 21.03% 27.56% 27.02%
</TABLE>
*Source Lipper Analytical Services, Inc.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period LARGE-CAP S&P 500
Fund
<S> <C> <C>
9/95 10000 10482
12/95 10574 11105
3/96 11344 11701
6/96 11923 12225
9/96 12864 12603
12/96 13555 13653
3/97 13842 14020
6/97 15621 16465
9/97 17333 17699
12/97 17167 18207
3/98 18413 20745
6/98 18008 21433
9/98 14165 19307
12/98 18716 23441
3/99 21543 24608
6/99 22880 26343
9/99 22366 24699
12/99 28820 28372
</TABLE>
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. The graph above to the right compares the
change in value of a $10,000 investment in the Monetta Large-Cap Equity Fund to
the S&P 500. The S&P 500 Composite index is a broad measure representative of
the general market.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Telecommunication Equipment 12.1%
Software 11.1%
Computers 11.0%
Media 10.3%
Retail 8.5%
Telephone 7.7%
Diversified Financial Services 6.2%
Semiconductors 5.5%
Pharmaceuticals 5.1%
All Other Industries 15.9%
(A) 6.6%
</TABLE>
(A) Short-term investments net of other assets and liabilities.
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Yahoo! Inc. 3.7%
JDS Uniphase Corp. 3.5%
America Online, Inc. 3.3%
Motorola, Inc. 3.2%
Nokia Corp. - Spon ADR 3.1%
Total Top 5 Holdings 16.8%
</TABLE>
COMMENTARY
The Large-Cap Fund posted a strong 28.9% return during the fourth quarter,
increasing the Fund's 1999 investment return to a record 54.0%. This return
significantly outperformed its benchmark index return (S&P 500 Index) of 21.0%
last year.
Fund performance benefited from its technology weightings in the computer,
telecommunications, and software industries, and also its media sector holdings.
Top performing securities during the year included Yahoo! Inc., America
Online, Inc., Nokia Corp., Nextel Communications, and Oracle Corp. On
December 31, 1999, Yahoo! Inc., America Online, Inc., and Nokia Corp. were part
of our "Top 5" equity holdings. Nextel Communications and Oracle Corp.
represent 2.8% and 2.4%, respectively, of net assets.
The pharmaceutical sector performed poorly last year, with such holdings as
Merck & Co., Pfizer, Inc., and Schering-Plough Corp., representing 1.4%,
1.1%, and 0.9%, respectively, of net assets. We have reduced our exposure to
this area and will revisit this sector as fundamentals improve.
The Fund's investment strategy continues to be focused on the best and
largest companies in a particular industry sector. These companies are
generally mature companies with solid financial strength. The major
investment risk is the market not favoring the Fund's growth investment style.
The Fund continues to be focused on large-cap growth stocks which should
continue to benefit from moderate economic growth, low inflation, and stable
interest rates.
<Page 7>
Monetta Balanced Fund Period ended 12/31/99
Investment Objective: Market Capitalization: Average Maturity:
Capital Appreciation/Income $131.7 billion 9.9 Years
Total Net Assets:
$9.4 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 3 Year 9/1/95
<S> <C> <C> <C>
Monetta Balanced
Fund 29.60% 19.48% 20.94%
S&P 500* 21.03% 27.56% 27.02%
Lehman Bros. Gov't/Corp.
Bond Index* (2.15)% 5.54% 5.84%
</TABLE>
*Source Lipper Analytical Services, Inc.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period BALANCED FUND S&P 500* LEHMAN BROS. GOV'T/
CORP. BOND INDEX*
<S> <C> <C> <C>
9/95 10000 10482 10000
12/95 10616 11105 10573
3/96 11131 11701 10326
6/96 11931 12225 10374
9/96 12547 12603 10557
12/96 13369 13653 10880
3/97 13358 14020 10786
6/97 14642 16465 11179
9/97 16431 17699 11570
12/97 16205 18207 11941
3/98 17321 20745 12123
6/98 16923 21433 12351
9/98 15004 19307 12962
12/98 17602 23441 12979
3/99 18952 24608 12823
6/99 19782 26343 12682
9/99 19353 24699 12751
12/99 22814 28372 12698
</TABLE>
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. The graph above to the right compares
the change in value of a $10,000 investment in the Monetta Balanced Fund to
the S&P 500 Index and the Lehman Gov't/Corp. Bond with dividends and capital
gains reinvested.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Common Stocks 69.1%
Corporate Bonds 20.9%
Mortgage Obligaytions 3.6%
Treasury Notes 4.2%
(A) 2.2%
</TABLE>
(A) Short-term investments net of other assets and liabilities.
TOP 5 EQUITY HOLDINGS:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
Yahoo! Inc. 3.7%
Merrill Lynch & Co., Inc. 3.5%
Intel Corp. 3.5%
MCI Worldcom, Inc. 3.4%
Home Depot, Inc. 3.3%
Total Top 5 Holdings 17.4%
</TABLE>
(A) Fixed income net of other assets and liabilities.
COMMENTARY
The Balanced Fund posted a record 17.9% fourth quarter return, increasing the
1999 return to 29.6%. The average Lipper Balanced Fund last year was up
8.69%. The Fund's strong performance was primarily due to its weightings in
the telecommunication and computer software areas. For the period ended
12/31/99, the Fund ranked 4th of 449 balanced funds tracked by Lipper
Analytical Services, for the one-year return, and 30th of 333 funds for the
three-year return. Throughout the year, the Fund maintained a 60% to 65%
weighting in common stocks with the balance invested in high quality,
intermediate term bonds.
The top performing stocks last year included; America Online, Inc., Yahoo!,
Inc., and Wal-Mart Stores, Inc. On December 31, 1999 these stocks
represented 2.6, 3.7%, and 2.9%, respectively, of net assets. The stock
holdings were weighted more toward the larger capitalization issues versus
the mid-cap and small-cap sectors.
Most securities held in this Fund are considered core holdings. We therefore
will trade around the core position, trimming holdings on stock price
appreciation to lock in profits and reduce overall volatility. Securities
are sold when the long-term fundamental outlook turns negative.
In spite of a poor, overall fixed income market last year, the Fund's high
quality, intermediate term securities did relatively well, down approximately
1%. This compares favorably to the returns of the Lehman Bros. Gov't/
Corporate Bond Index, which declined 2.2%.
Our investment strategy continues to focus on quality growth companies,
leaders in their respective industries with solid competitive advantages.
The fixed income strategy is to remain positioned in the high quality
corporate bond sector and primarily in intermediate term maturities. The
fixed income strategy is basically buy and hold and tends to have a lower
duration than its benchmark index.
<Page 8>
Monetta Intermediate Bond Fund Period ended 12/31/99
Investment Objective: 30-Day SEC Yield: Average Maturity:
Income 6.71% 4.3 Years
Total Net Assets:
$19.9 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 5 Year 3/1/93
<S> <C> <C> <C>
Monetta Intermediate
Bond Fund 1.60% 7.95% 6.81%
Lehman Gov't./Corp
Interm. Bond Index* 0.39% 7.10% 5.60%
</TABLE>
*Source Lipper Analytical Services, Inc.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period Monetta Intermediate Lehman Gov't/Corp.
Bond Int. Bond Index*
<S> <C> <C>
3/1/93 10000 10007
3/93 10000 10028
6/93 10399 10255
9/93 10732 10486
12/93 10817 10504
3/94 10585 10291
6/94 10494 10229
9/94 10613 10313
12/94 10705 10302
3/95 11270 10754
6/95 11866 11292
9/95 12046 11479
12/95 12282 11883
3/96 12245 11784
6/96 12428 11859
9/96 12702 12068
12/96 13074 12364
3/97 13041 12350
6/97 13485 12715
9/97 13908 13058
12/97 14238 13338
3/98 14443 13546
6/98 14748 13800
9/98 15382 14420
12/98 15431 14463
3/99 15548 14436
6/99 15371 14378
9/99 15632 14510
12/99 15678 14517
</TABLE>
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. The graph above compares the change in value
of a $10,000 investment in the Monetta 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.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
Corporate Bonds 77.6%
U.S. Gov't Agencies 14.0%
Mortgage Obligations 0.1%
(A) 8.4%
</TABLE>
(A) Short-term investments net of other assets and liabilities.
MATURITY PROFILE:
<TABLE>
<CAPTION>
% of Net Assets
<S> <C>
1 Year or Less 16.1%
1-3 Years 20.1%
3-6 Years 39.8%
6-10 Years 21.1%
Over 10 Years 2.9%
Total 100.0%
</TABLE>
COMMENTARY
The Monetta Intermediate Bond Fund gained 1.60% for the year ended December 31,
1999 versus the negative .98% of the Lipper Intermediate Investment Grade Debt
Funds. The Fund ranked 9th of 279 funds for the one-year return and 8th of 192
funds and 12th of 145 funds for the three-year and five-year rankings
respectively. The Fund's performance reflects participation in Initial Public
Offerings, and had it not done so, the Fund's one-year, return would have been
.55%, versus 1.60%.
There were no major changes to the investment strategy for 1999. We continue
to believe that minimizing maturity risk versus the Lehman Government
Corporate Benchmark while overweighting the higher yielding sectors of the
corporate bond market will continue to provide the best opportunity for
outperformance.
Calendar year 1999 was a disappointing one for the global bond market.
The U.S. bond market concluded a bearish journey that saw U.S. treasury
yields increase dramatically across the entire maturity curve. The 2-year
treasury ended the year at 6.24%, an increase of 171 basis points while the
30-year closed at 6.62%, an increase of 152 basis points. This rise in U.S.
and European yields will be recorded as the second toughest year for absolute
returns since the inception of the Lehman indices. We saw the Federal
Reserve raise the discount rate 25 basis points three different times
attempting to stem the tide of inflation fear caused by a strong domestic
economy and optimism for a continuing global rebound.
Corporate bonds performed nicely the first 4 1/2 months of the year. During
late spring and summer, however, performance suffered due to Fed tightening
and heavy supply before staging a 4th quarter recovery to post positive
relative returns versus Governments for the year.
Our outlook for the year 2000 is cautious near-term but positive longer term.
The Fed will continue to cast a heavy shadow until the economy shows signs of
slowing. We are optimistic that the Fed is becoming increasingly more
comfortable with a higher economic growth rate as productivity gains continue
to temper inflation expectations. Supply and Y2K issues appear to have
resolved themselves. We continue to believe that the Fund performance will
benefit from a slower economy coupled with a diminished role by the Fed, and
overweighting the corporate sectors of the bond market.
<Page 9>
Monetta Government Money Market Fund Period ended 12/31/99
Investment Objective: 7-Day Yield: Average Days to Maturity:
Income and Capital Preservation 5.23%** 26 Days
Total Net Assets:
$3.7 million
<TABLE>
<CAPTION>
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 5 Year (3/1/93)
Monetta Government
<S> <C> <C> <C>
Money Market Fund 4.85%** 5.23%** 4.75%**
Lipper US Gov't Money
Market Funds Avg.* 4.46% 4.92% 4.43%
</TABLE>
*Source Lipper Analytical Services, Inc.
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Measurement Period Money Market Lipper Average
<S> <C> <C>
3/1/93 10000 10000
3/93 10013 10023
6/93 10072 10088
9/93 10147 10154
12/93 10224 10222
3/94 10301 10290
6/94 10396 10374
9/94 10507 10475
12/94 10637 10597
3/95 10788 10738
6/95 10950 10885
9/95 11110 11030
12/95 11262 11174
3/96 11401 11309
6/96 11539 11440
9/96 11683 11579
12/96 11832 11711
3/97 11977 11846
6/97 12126 11988
9/97 12281 12135
12/97 12441 12284
3/98 12599 12433
6/98 12760 12585
9/98 12927 12738
12/98 13091 12894
3/99 13244 13045
6/99 13397 13180
9/99 13554 13327
12/99 13726 13485
</TABLE>
Past performance is no guarantee of future results. **Total returns are net
of advisory and distribution fees waived and voluntary absorption of all or
part of the Fund's operating expenses by the Advisor. Had fees not been
waived, the 7-day SEC yield would have been 4.88%, versus 5.23% on December
31, 1999. 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.
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION
<S> <C>
(A) Fed. Home Loan Mortg. Corp. 33.1%
Fed. Home Loan Bank Disc. 32.4%
Fed. Farm Credit 15.3%
Fed. Nat'l. Mortg. Assoc. 19.2%
</TABLE>
(A) Fixed income investments net of other assets and liabilities.
ALLOCATION:
<TABLE>
<CAPTION>
<S> <C>
Government Obligations 100.7%
Other Assets Less Liabilities (0.7)%
Total 100.0%
</TABLE>
COMMENTARY
The Government Money market Fund posted an impressive return of 4.85% for the
year ending 12/31/99. The returns compare favorably to the Lipper U.S.
Government Money Market Funds category ranking the fund 8th of 123 Funds in
this category for the one-year return, 11th of 106 for the three-year return,
and 7th of 91 funds for the 5-year return.
We continue to overweight the agency discount note sector versus Government
Bills because of the yield premium that this sector provides. As of
12/31/99, the average maturity of the Fund was less than 30 days in
anticipation of the first quarter 2000 tightening Federal Reserve policy.
This last year did not disappoint investors who were expecting higher
interest rates due to concerns over accelerating economic growth. The Fed
raised short-term rates by 75 basis points in 1999 and has given every
indication that it will raise them again another 25-50 basis points by mid-
2000. We believe that there are economic changes already underway that should
eventually slow GDP growth. This environment suggests that Fed tightening
initiatives will be a slow, gradual process.
We therefore intend to maintain defensive position until we discover a
positive change in the near term direction of interest rates. At such time
we will extend maturities, monitoring closely the yield spread opportunities
in available sector choices.
The Monetta Government Money Market Fund is the most conservative of the
Monetta Family of Mutual Funds. Its primary objectives are the preservation
of capital and liquidity. The investment emphasis is on stability and
conservatism.
<Page 10>
Schedule of Investments December 31, 1999
MONETTA FUND
COMMON STOCKS - 95.7% VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
Advertising - 2.4%
<S> <C> <C>
*16,000 APAC Teleservices, Inc. $ 225
*11,000 Catalina Marketing Corp. 1,273
11,000 True North Communications, Inc. 492
*22,000 Valuevision Int'l, Inc. 1,261
3,251
Biotechnology - 1.6%
*3,500 Affymetrix, Inc. 594
*25,000 Bio-Technology General Corp. 381
*7,000 IDEC Pharmaceuticals Corp. 688
*4,000 Millennium Pharmacuticals, Inc. 488
2,151
Commercial Services - 0.7%
20,000 Hooper Holmes, Inc. 515
*18,000 MedQuist, Inc. 465
980
Computers - 15.8%
*26,000 Advanced Digital Information Corp. 1,264
*5,000 Ancor Communications, Inc. 339
*17,000 AXENT Technologies, Inc. 357
*8,000 Black Box Corp. Inc. 536
*19,000 Cabletron Systems, Inc. 494
*12,000 Ciber, Inc. 330
*6,300 Cognizant Technology Solutions Corp. 689
*13,000 Computer Network Technology Corp. 298
*17,000 Concurrent Computer Corp. 318
*4,000 Cybex Computer Products Corp. 162
*10,700 Datalink Corp. 206
*15,000 Echelon Corp. 293
*5,000 Emulex Corp. 562
12,000 Factset Research Systems, Inc. 956
*20,000 Inter-Voice-Brite, Inc. 473
*11,000 ISS Group, Inc. 782
*5,000 Kronos, Inc. 300
*35,900 Mercury Computer Systems, Inc. 1,257
*7,000 Micros Systems, Inc. 518
*11,000 MMC Networks, Inc. 378
*40,000 M-Systems Flash Disk Pioneers Ltd. 1,315
*27,000 MTI Technology Corp. 996
21,000 National Computer Systems, Inc. 790
*9,500 Network Access Solutions Corp. 314
*6,000 Radiant Systems, Inc. 241
*28,300 RadiSys Corp. 1,443
*23,500 RSA Security, Inc. 1,821
*7,000 SanDisk Corp. 674
*24,000 Silicon Storage Technology, Inc. 990
*7,300 Sykes Enterprises, Inc. 320
*27,000 Technology Solutions Co. 884
*10,000 Visual Networks, Unc. 793
*4,000 Xircom, Inc. 300
21,393
Electrical Components & Equipment - 1.8%
*16,300 American SuperConductor Corp. 456
*10,100 Artesyn Technologies, Inc. 212
7,500 C&D Technologies, Inc. 319
*24,300 C-Cube MicroSystems, Inc. 1,513
2,500
Electronics - 10.3%
*10,500 Amphenol Corp. 699
*8,000 Anadigics, Inc. 378
*5,000 Audiovox Corp. 152
20,000 Cohu, Inc. 620
*10,200 Credence Systems Corp. 883
7,000 CTS Corp. 528
*13,800 DII Group, Inc. 979
*10,600 DSP Group, Inc. 986
*10,000 Electro Scientific Industries, Inc. 730
*11,100 Excel Technology, Inc. 199
*31,000 Integrated Device Technology, Inc. 899
*20,000 Kemet Corp. 901
*25,000 LTX Corp. 559
*10,000 Micrel, Inc. 569
*15,100 Nanometrics, Inc. 304
10,000 Newport Corp. 457
*12,000 Orbotech Ltd. 930
11,000 Perkinelmer, Inc. 459
*16,000 Power Integrations, Inc. 767
*8,800 Sanmina Corp. 879
*10,500 Sawtek, Inc. 699
*11,300 SBS Technologies, Inc. 412
13,989
Engineering & Construction - 0.3%
*10,000 Dycom Industries, Inc. 441
Health Care - 0.3%
*18,100 Polymedica Corp. 418
Home Furnishings - 0.5%
*9,500 Polycom, Inc. 605
Machinery-Diversified - 1.8%
*11,300 Asyst Technologies, Inc. 741
30,500 Helix Technology Corp. 1,366
*7,000 Kulicke & Soffa Industries, Inc. 298
2,405
</TABLE>
<PAGE 11>
Schedule of Investments December 31, 1999
MONETTA FUND (Con't)
COMMON STOCKS VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Media - 6.1%
*24,000 ACTV, Inc. $ 1,097
*16,000 Citadel Communications Corp. 1,038
*18,000 Cumulus Media, Inc. 913
*11,000 Emmis Communications Corp. 1,371
*11,500 Jones Intercable, Inc. - CL A 797
*10,000 Pegasus Communications Corp. 978
*8,000 Source Media, Inc. 148
*12,700 UnitedGlobalCom, Inc. - CL A 897
*13,250 Westwood One, Inc. 1,007
8,246
Miscellaneous Manufacturing - 0.3%
1,300 Optical Coating Laboratory, Inc. 385
Oil & Gas Services - 0.1%
*4,500 Hanover Compressor Co. 170
Pharmaceuticals - 2.8%
*8,000 Biovail Corporation Int'l 750
*21,000 Cephalon, Inc. 726
27,500 Jones Pharma, Inc. 1,194
*13,000 Medicis Pharmaceutical Corp. - CL A 553
*2,000 Medimmune, Inc. 332
*3,000 Sepracor, Inc. 298
3,853
Retail - 0.1%
*5,000 Ames Department Stores,Inc. 144
Semiconductors - 9.1%
*21,000 Actel Corp. 504
*5,000 Alpha Industries, Inc. 287
*43,500 Amkor Technology, Inc. 1,229
*4,500 Applied Micro Circuits Corp. 573
*20,000 Cirrus Logic, Inc. 266
*32,000 Cypress Semiconductor Corp. 1,036
*8,000 Electroglas, Inc. 203
*29,000 ESS Technology, Inc. 643
*15,000 Exar Corp. 883
*25,000 Int'l Rectifier Corp. 650
*5,600 Lam Research Corp. 625
*10,000 Lattice Semiconductor Corp. 471
*8,000 MIPS Technologies, Inc. 416
*7,400 Novellus Systems, Inc. 907
*9,100 Photronics, Inc. 260
*17,000 Semtech Corp. 886
*6,500 Siliconix, Inc. 855
*11,000 Transwitch Corp. 798
*8,000 TriQuint SemiConductor, Inc. 890
12,382
Software 16.1%
*3,800 24/7 Media, Inc. $ 214
*31,000 Actuate Corp. 1,329
*15,000 Ardent Software, Inc. 585
*29,000 Banyan Systems, Inc. 580
*10,000 Brio Technology, Inc. 420
*4,000 Business Objects S.A. - SP ADR 535
*13,000 Cambridge Technology Partners,Inc. 341
*5,000 Cognos, Inc. 231
*19,500 Datastream Systems, Inc. 479
*13,900 Digital River, Inc. 463
*9,700 DSET Corp. 363
*8,000 Eclipsys Corp. 205
*26,000 Genesys Telecommunications Labs, Inc. 1,404
*2,500 Great Plains Software, Inc. 187
*5,000 Hummingbird Communications Ltd. 153
*29,000 Hyperion Solutions Corp. 1,261
*4,000 InterVU, Inc. 420
*17,000 Manugistics Group, Inc. 549
*6,000 Mercury Interactive Corp. 648
*7,500 Micromuse, Inc. 1,275
*1,900 Microstrategy, Inc. 399
*20,000 NVIDIA Corp. 939
*18,000 Open Market, Inc. 812
*6,000 Pacific Internet Ltd. 282
*6,500 Peregrine Systems, Inc. 547
*10,000 Progress Software Corp. 567
*7,600 Project Software & Development, Inc. 422
*6,700 Proxicom, Inc. 833
*12,000 Remedy Corp. 568
*21,500 Sapiens Int'l Corp. N.V. 353
*21,000 Sybase, Inc. 357
*21,000 Symantec Corp. 1,231
*17,000 Telescan, Inc. 420
*27,000 The Santa Cruz Operation, Inc. 820
*17,700 Ultimate Software Group, Inc. 231
*5,500 USInternetWorking, Inc. 384
*7,000 WebTrends Corp. 567
*14,000 Wind River Systems, Inc. 515
21,889
Telecommunication Equipment -21.2%
*3,800 Adaptive Broadband Corp. 281
*40,000 Adelphia Business Solutions, Inc. 1,920
*8,700 ADTRAN, Inc. 448
*42,000 Advanced Fibre Communication, Inc. 1,877
*16,000 Advanced Radio Telecom Corp. 384
*24,000 American Mobile Satellite Corp. 506
*30,000 Aspect Communications Corp. 1,174
</TABLE>
<PAGE 12>
Schedule of Investments December 31, 1999
MONETTA FUND (Con't)
COMMON STOCKS VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
*15,000 CapRock Communications Corp. $ 487
*8,000 Carrier Access Corp. 539
*18,000 C-Cor.net Corp. 1,379
*10,000 Com21, Inc. 224
*14,000 Commscope, Inc. 564
*8,000 Copper Mountain Networks, Inc. 390
*19,800 Corsair Communications, Inc. 161
*38,000 CTC Communications Group, Inc. 1,483
*22,000 Digital Microwave Corp. 516
*4,500 Ditech Communications Corp. 421
*24,000 Ectel Ltd 438
*8,500 E-TEK Dynamics, Inc. 1,140
*7,000 Gilat Satellite Networks Ltd. 831
*9,000 Harmonic, Inc. 855
*4,000 Leap Wireless Int'l, Inc. 314
*4,000 Metricom, Inc. 315
*15,000 MGC Communications, Inc. 761
*25,000 Microcell Telecommunications, Inc. 822
*5,000 Millicom Int'l Cellular S.A. 312
*22,000 MRV Communications, Inc. 1,383
*8,000 Nice Systems Ltd. - SP ADR 394
*4,000 NorthEast Optic Network, Inc. 250
*6,300 Omnipoint Corp. 760
*9,800 Optical Cable Corp. 196
*22,000 Pairgain Technologies, Inc. 312
*3,000 Plantronics, Inc. 215
*11,000 Powertel, Inc. 1,104
*5,500 Powerwave Technologies, Inc. 321
*8,000 Proxim, Inc. 880
*15,000 Rogers Cantel Mobile Communications, Inc. 546
*9,000 Rural Cellular Corp. - CL A 815
*39,400 TALK.com, Inc. 699
*20,000 Tekelec 450
*8,000 Terayon Communication Systems, Inc. 503
*7,000 ViaSat, Inc. 349
*10,000 Weblink Wireless, Inc. 155
*31,000 World Access, Inc. 597
*8,900 XETA Corp. 295
28,766
Telephone - 3.4%
10,500 CFW Communications Co. 365
*20,000 Intermedia Communications, Inc. 776
*46,500 Primus Telecommunications Group, Inc. 1,778
*30,000 Viatel, Inc. 1,609
4,528
Transportation - 1.0%
30,000 Expeditors Int'l of Washington, Inc. 1,314
Total Common Stocks
(Cost $80,326) (a) 129,810
VARIABLE DEMAND NOTES - 0.5%
PRINCIPAL AMOUNT
640,900 Firstar Bank
Milwaukee, N.A. - 6.16% 641
COMMERCIAL PAPER - 6.6%
PRINCIPAL AMOUNT
1,500,000 Merrill Lynch - 6.12%
Due 01/20/00 1,495
3,000,000 Met Life Funding - 6.30%
Due 01/20/00 2,990
4,500,000 Toyota Motor Credit- 5.88%
Due 01/10/00 4,493
8,978
Total Short-Term Investments 9,619
Total Investments-102.8%
(Cost $89,945) (a) 139,429
Other Assets Less Liabilities - (2.8%) (3,767)
Net Assets - 100% $135,662
</TABLE>
(a) For tax purposes, cost is $90,758; the aggregate gross unrealized
appreciation is $49,170, and aggregate gross unrealized depreciation is $499,
resulting in net unrealized appreciation of $48,671 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<PAGE 13>
Schedule of Investments December 31, 1999
MONETTA SMALL-CAP EQUITY FUND
COMMON STOCKS - 91.8% VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Commercial Services - 1.0%
*2,000 MedQuist, Inc. $ 52
Computers - 14.3%
*5,000 M-Systems Flash Disk Pioneers Ltd. 164
1,900 National Computer Systems, Inc. 71
*2,000 QRS Corp. 209
*1,500 RadiSys Corp. 77
*1,500 RSA Security, Inc. 116
*3,000 Silicon Storage Technology, Inc. 124
761
Electrical Components & Equipment - 2.3%
*2,000 C-Cube MicroSystems, Inc. 124
Electronics - 11.9%
*1,500 Amphenol Corp. 100
1,500 CTS Corp. 113
*5,000 Excel Technology, Inc. 89
*2,000 Micrel, Inc. 114
*1,500 Orbotech Ltd. 116
*1,500 Sawtek, Inc. 100
632
Machinery-Diversified - 1.2%
1,500 Helix Technology Corp. 67
Media - 2.9%
*1,500 Jones Intercable, Inc. - CL A 104
*500 Pegasus Communications Corp. 49
153
Pharmaceuticals - 2.7%
*3,400 Medicis Pharmaceutical Corp. - CL A 145
Semiconductors - 5.5%
*3,500 Amkor Technology, Inc. 99
*1,000 Applied Micro Circuits Corp. 127
*3,000 ESS Technology, Inc. 67
293
Software - 13.0%
*1,000 Concentric Network Corp. 31
*2,000 DSET Corp. 75
*2,000 Genesys Telecommunications Labs, Inc. 108
*2,000 Pacific Internet Ltd. 94
*2,000 Progress Software Corp. 113
*3,000 Symantec Corp. 176
*3,200 The Santa Cruz Operation, Inc. 97
694
Telecommunication Equipment - 13.5%
*3,000 Advanced Fibre Communications, Inc. 134
*2,000 Carrier Access Corp. 134
*3,000 C-Cor.net Corp. 230
*2,000 Com21, Inc. 45
*600 E-TEK Dynamics, Inc. 81
*1,000 Harmonic, Inc. 95
719
Telecommunications - 19.4%
*4,000 Adelphia Business Solutions, Inc. 192
*3,000 Aspect Communications Corp. 117
*2,700 CTC Communications Group, Inc. 105
*1,000 Inet Technologies, Inc. 70
*1,000 Metricom, Inc. 79
*3,000 Microcell Telecommunications, Inc. 99
*700 Omnipoint Corp. 84
*1,000 Powertel, Inc. 100
*5,000 TALK.com, Inc. 89
*2,000 ViaSat, Inc. 100
1,035
Telephone - 2.5%
*3,500 Primus Telecommunications Group, Inc. 134
Transportation - 1.6%
2,000 Expeditors Int'l of Washington, Inc. 88
Total Common Stocks
(Cost $2,887) (a) 4,897
VARIABLE DEMAND NOTES - 7.4%
PRINCIPAL AMOUNT
213,100 Firstar Bank Milwaukee, N.A, - 6.16% 213
177,900 Warner Lambert - 6.08% 178
391
Total Investments - 99.2%
(Cost $3,278) (a) 5,288
Other Assets Less Liabilities - 0.8% 44
Net Assets - 100% $5,332
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $2,039, and aggregate gross unrealized depreciation is $29,
resulting in net unrealized appreciation of $2,010 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<PAGE 14>
Schedule of Investments December 31, 1999
MONETTA MID-CAP EQUITY FUND
COMMON STOCKS - 90.7%
VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Advertising - 1.8%
*3,300 Lamar Advertising Co. $ 200
*1,000 TMP Worldwide, Inc. 142
342
Biotechnology - 2.4%
*4,000 Biogen, Inc. 338
*1,000 Millennium Pharmacuticals, Inc. 122
460
Commercial Services - 1.9%
3,000 Comdisco, Inc. 112
*3,000 Concord EFS, Inc. 77
*2,500 Convergys Corp. 77
*2,500 USWeb Corp. 111
377
Computers - 4.6%
*1,000 Apple Computer, Inc. 103
*4,000 Cabletron Systems, Inc. 104
*1,000 CheckFree Holdings Corp. 105
*4,000 IXL Enterprises, Inc. 222
*4,000 Synopsys, Inc. 267
*2,000 Whittman-Hart, Inc. 107
908
Electric/Components & Equipment - 1.1%
*3,000 American Power Conversion Corp. 79
4,000 Montana Power Co. 144
223
Electronics - 8.4%
*3,000 Analog Devices, Inc. 279
*4,000 Celestica, Inc. 222
*3,000 DII Group, Inc. 213
*4,000 Jabil Circuit, Inc. 292
4,000 Linear Technology Corp. 286
*3,500 Microchip Technology, Inc. 240
*1,000 Solectron Corp. 95
1,627
Home Furnishings - 1.4%
*4,000 Gemstar Int'l Group Ltd. 285
Media - 5.8%
3,000 Dow Jones & Company, Inc. 204
*3,000 Entercom Communications Corp. 198
*2,500 Hispanic Broadcasting Corp. 231
*5,000 Infinity Broadcasting Corp. 181
*2,000 Univision Communications, Inc. - CL A 204
*2,000 USA Networks, Inc. 110
1,128
Oil & Gas Producers - 2.7%
*3,000 BJ Services Co. $ 125
*4,000 Noble Drilling Corp. 131
*4,000 Rowan Companies, Inc. 87
3,000 Transocean Sedco Forex, Inc. 101
*2,000 Weatherford Int'l, Inc. 80
524
Pharmaceuticals - 3.2%
*3,000 Forest Laboratories, Inc. 184
*2,000 Medimmune, Inc. 332
4,000 Mylan Laboratories, Inc. 101
617
Retail - 1.1%
2,400 Tiffany & Co. 214
Semiconductors - 10.1%
*4,000 Altera Corp. 198
*6,000 Atmel Corp. 177
*1,000 Broadcom Corp. - CL A 272
*4,000 Conexant Systems, Inc. 266
3,000 Dallas Semiconductor Corp. 193
*3,000 National Semiconductor Corp. 129
*2,000 Novellus Systems, Inc. 245
*2,000 PMC-Sierra, Inc. 321
*1,000 Qlogic Corp. 160
1,961
Software Applications/Enterprise Service- 10.1%
*2,000 BEA Systems, Inc. 140
*2,000 Citrix Systems, Inc. 246
*1,000 i2 Technologies, Inc. 195
*3,000 Intuit, Inc. 180
*4,000 Novell, Inc. 159
*2,000 Peregrine Systems, Inc. 168
*5,000 Rational Software Corp. 246
*4,000 Siebel Systems, Inc. 336
*5,000 Symantec Corp. 293
1,963
Software Internet/Content - 13.0%
*2,000 CNET, Inc. 114
*1,000 Commerce One, Inc. 197
*4,000 Covad Communications Group, Inc. 224
*4,000 Exodus Communications, Inc. 355
*2,000 Harbinger Corp. 64
*2,000 Inktomi Corp. 177
*1,000 Intraware, Inc. 79
*2,000 Lycos, Inc. 159
*4,000 Marimba, Inc. 184
*3,000 PSINet, Inc. 185
</TABLE>
<PAGE 15>
Schedule of Investments December 31, 1999
MONETTA MID-CAP EQUITY FUND (Con't)
COMMON STOCKS
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
*3,000 S1 Corp. $ 234
*5,000 Verio, Inc. 231
*2,000 Verticalnet, Inc. 328
2,531
Software Miscellaneous - 5.8%
2,500 Adobe Systems, Inc. 168
*2,000 Cognos, Inc. 92
*2,000 Electronic Arts, Inc. 168
*3,000 Legato Systems, Inc. 207
*3,000 Macromedia, Inc. 219
*4,000 Network Associates, Inc. 107
*3,000 Parametric Technology Corp. 81
*2,000 Research in Motion Ltd. 92
1,134
Telecommunication Equipment - 6.1%
*3,000 ADC Telecommunications, Inc. 218
*1,000 Comverse Technology, Inc. 145
*5,000 Metromedia Fiber Network, Inc. - CL A 240
*2,000 Qualcomm, Inc. 352
4,000 Scientific-Atlanta, Inc. 222
1,177
Telecommunications - 9.9%
3,000 BroadWing, Inc. 111
*3,000 Echostar Communications Corp. - CL A 292
*4,000 Global Crossing Ltd. 200
*3,000 Global Telesystems Group, Inc. 104
*3,000 Loral Space & Communications Ltd. 73
*1,900 McLeodUSA, Inc. 112
*2,000 NTL, Inc. 249
*4,000 Qwest Communications Int'l, Inc. 172
*2,000 VoiceStream Wireless Corp. 285
*5,000 Western Wireless Corp. 334
1,932
Telephone - 1.3%
2,000 Telephone and Data Systems, Inc. 252
Total Common Stocks
(Cost $11,672) (a) 17,655
VARIABLE DEMAND NOTES - 0.3%
PRINCIPAL AMOUNT
60,500 Firstar Bank Milwaukee, N.A. - 6.16% 61
COMMERCIAL PAPER - 15.3% VALUE
PRINCIPAL AMOUNT (In Thousands)
525,000 CIT Group - 5.80%
Due 01/07/00 $ 525
VARIABLE DEMAND NOTES - 12.6%
PRINCIPAL AMOUNT
800,000 Ford Motor Credit - 6.10%
Due 01/14/00 798
900,000 Merrill Lynch - 6.00%
Due 01/18/00 897
750,000 Merrill Lynch - 6.12%
Due 01/19/00 748
2,968
Total Short-Term Investments 3,029
Total Investments - 106.3%
(Cost $14,701) (a) 20,684
Other Assets Less Liabilities - ( 6.3%) (1,226)
Net Assets - 100% $19,458
</TABLE>
(a) For tax purposes, cost is $14,735; the aggregate gross unrealized
appreciation is $5,971, and aggregate gross unrealized depreciation is $23,
resulting in net unrealized appreciation of $5,948 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<PAGE 16>
Schedule of Investments December 31, 1999
MONETTA LARGE-CAP EQUITY FUND
COMMON STOCKS - 93.4% VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Biotechnology - 2.6%
*4,000 Amgen, Inc. $ 240
Computers - 11.0%
*3,000 3COM Corp. 141
*2,000 Cisco Systems, Inc. 214
*3,000 Dell Computer Corp. 153
*2,000 EMC Corp. 219
*2,000 Gateway, Inc. 144
*2,000 Sun Microsystems, Inc. 155
1,026
Diversified Financial Services - 6.2%
1,200 American Express Co. 200
3,750 Citigroup, Inc. 208
2,000 Merrill Lynch & Co., Inc. 167
575
Health Care - 1.0%
1,000 Johnson & Johnson Co. 93
Insurance - 1.5%
1,250 American Int'l Group, Inc. 135
Media - 10.3%
3,000 CBS Corp. 192
*3,000 Clear Channel Communications, Inc. 267
3,000 Comcast Corp. - Special CL A 151
4,000 Cox Communications, Inc. - CL A 206
2,000 Time Warner, Inc. 145
961
Miscellaneous Manufacturing - 2.0%
1,200 General Electric Co. 186
Oil & Gas Producers - 3.9%
1,500 Exxon Mobil Corp. 121
2,000 Halliburton Co. 80
2,500 Schlumberger Ltd. 141
485 Transocean Sedco Forex, Inc. 16
358
Pharmaceuticals - 5.1%
4,000 American Home Products Corp. 158
2,000 Merck & Co. 134
3,000 Pfizer, Inc. 97
2,000 Schering-Plough Corp. 85
474
Retail - 8.5%
2,000 Dayton Hudson Corp. 147
3,750 Home Depot, Inc. 257
*2,500 Kohl's Corp. 181
3,000 Wal-Mart Stores, Inc. 207
792
Semiconductors - 5.5%
2,000 Intel Corp. 165
*2,000 Micron Technology, Inc. 155
2,000 Texas Instruments, Inc. 194
514
Software - 11.1%
*4,000 America Online, Inc. 302
*1,400 Microsoft Corp. 163
*2,000 Oracle Corp. 224
*800 Yahoo!Inc. 346
1,035
Telecommunication Equipment - 12.1%
*2,000 JDS Uniphase Corp. 323
3,000 Lucent Technologies, Inc. 224
2,000 Motorola, Inc. 294
1,500 Nokia Corp. - SP ADR 285
1,126
Telecommunications - 4.9%
*2,000 General Motors Corp. - CL H 192
*2,500 Nextel Communications, Inc. - CL A 258
450
Telephone - 7.7%
2,000 ALLTEL Corp. 166
*3,000 MCI Worldcom, Inc. 159
*3,000 Nextlink Communications, Inc. 249
3,000 SBC Communications, Inc. 146
720
Total Common Stocks
(Cost $5,541) (a) 8,686
VARIABLE DEMAND NOTES - 6.7%
PRINCIPAL AMOUNT
368,500 Firstar Bank Milwaukee, N.A. - 6.16% 368
251,600 Warner Lambert - 6.08% 252
620
Total Investments - 100.1%
(Cost $6,161) (a) 9,305
Other Assets Less Liabilities - (0.1%) (7)
Net Assets - 100% $9,298
</TABLE>
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $3,205, and aggregate gross unrealized depreciation is $61,
resulting in net unrealized appreciation of $3,144 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
<PAGE 17>
Schedule of Investments December 31, 1999
MONETTA BALANCED FUND
COMMON STOCKS - 69.1% VALUE
NUMBER OF SHARES (In Thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Computers - 8.0%
*3,000 3COM Corp. $ 141
*3,000 Dell Computer Corp. 153
*7,000 M-Systems Flash Disk Pioneers Ltd. 230
*3,000 Sun Microsystems, Inc. 232
756
Diversified Financial Services - 6.5%
5,000 Citigroup, Inc. 278
4,000 Merrill Lynch & Co., Inc. 334
612
Media - 5.1%
*3,000 Clear Channel Communications, Inc. 268
*3,000 Cox Communications, Inc. - CL A 155
*1,500 Spanish Broadcasting System, Inc. - CL A 60
483
Oil & Gas Producers - 2.0%
3,000 Schlumberger Ltd. 169
582 Transocean Sedco Forex, Inc. 20
189
Pharmaceuticals - 4.1%
4,000 American Home Products Corp. 158
2,000 Merck & Co. 134
3,000 Pfizer, Inc. 97
389
Retail - 9.3%
4,000 Dayton Hudson Corp. 294
4,500 Home Depot, Inc. 309
4,000 Wal-Mart Stores, Inc. 276
879
Semiconductors - 3.5%
4,000 Intel Corp. 329
Software - 10.9%
*3,000 America Online, Inc. 226
*2,000 Microsoft Corp. 234
*2,000 Oracle Corp. 224
*800 Yahoo! Inc. 346
1,030
Telecommunication Equipment 8.0%
3,500 Lucent Technologies, Inc. 262
2,000 Motorola, Inc. 294
2,000 Nortel Networks Corp. 202
758
Telecommunications - 5.7%
*3,000 Adelphia Business Solutions, Inc. 144
*4,000 Qwest Communications Int'l, Inc. 172
*4,000 TALK.com, Inc. 71
3,000 Vodafone Group PLC - SP ADR 148
535
Telephone - 6.0%
3,000 ALLTEL Corp. 248
*6,000 MCI Worldcom, Inc. 318
566
Total Common Stock
(Cost $4,162) (a) 6,527
VARIABLE DEMAND NOTES - 1.8%
PRINCIPAL AMOUNT
168,600 Firstar Bank Milwaukee,
N.A. - 6.16% 169
TREASURY NOTES - 4.2%
PRINCIPAL AMOUNT
350,000 US Treasury Note
8.125% Due 08/15/19 399
CORPORATE BONDS - 20.9%
PRINCIPAL AMOUNT
300,000 Chase Manhattan Corp.
9.750% Due 11/01/01 314
300,000 National Rural Utilities
6.250% Due 04/15/03 291
300,000 US Central Credit Union
6.00% Due 05/21/03 293
350,000 Worldcom, Inc.
7.550% Due 04/01/04 355
300,000 Bank United Corp.
8.875% Due 05/01/07 279
175,000 Ford Motor Credit Co.
7.375% Due 10/28/09 173
300,000 East Coast Power, LLC
7.066% Due 03/31/12 270
1,975
MORTGAGE OBLIGATIONS - 3.6%
PRINCIPAL AMOUNT
344,995 Green Tree Home Imprv. Mortgage
6.780% Due 06/15/28 340
Total Investments - 99.6%
(Cost $7,152) (a) 9,409
Other Assets Less Liabilities - 0.4% 40
Total Net Assets - 100% $9,449
</TABLE>
<PAGE 18>
Schedule of Investments December 31, 1999
MONETTA INTERMEDIATE BOND FUND
<TABLE>
<CAPTION>
Corporate Bonds - 77.6% VALUE
PRINCIPAL AMOUNT (In Thousands)
<S> <C> <C>
940,000 Pacific Gas & Elec. - 8.750% 01/01/01 $ 957
700,000 Chase Manhattan Corp. - 9.750% 11/01/01 734
800,000 Cox Enterprises, Inc. - 6.625% 06/14/02 790
860,000 Tyco Int'l Group - 6.875% 09/05/02 847
100,000 Webb (DEL E.) - 9.750% 03/01/03 100
850,000 National Rural Utilities - 6.250% 04/15/03 825
850,000 US Central Credit Union 6.000% 05/21/03 829
850,000 Bank of America Corp.- 6.875% 06/01/03 842
1,000,000 NRG Energy Inc. - 8.000% 11/01/03 991
665,000 Worldcom, Inc. - 7.550% 04/01/04 674
300,000 The Money Store - 8/375% 04/15/04 310
900,000 Associates Corp., NA - 5.800% 04/20/04 853
955,000 American Express - 6.750% 06/23/04 939
750,000 Newcourt Credit Group - 6.875% 02/16/05 736
365,000 Bank United Corp. - 8.875% 05/01/07 340
900,000 LCI Int'l, Inc. - 7.250% 06/15/07 865
900,000 Lehman Brothers, Inc. - 6.625% 02/15/08 834
200,000 Jones Intercable - 10/500% 03/01/08 211
635,000 Countrywide Home Loan-6.250% 04/15/09 571
800,000 Cilcorp, Inc. - 8.700% 10/15/09 809
850,000 Ford Motor Credit - 7.375% 10/28/09 841
585,000 East Coast Power - 7.066% 03/31/12 527
15,425
U.S. GOVERNMENT AGENCIES - 14.0%
PRINCIPAL AMOUNT
1,000,000 Inter-American Development Bank
Discount Note 01/12/00 - 5.850% 998
800,000 Federal Home Loan Mortgage Corp.
5.500% 05/15/02 781
250,000 HUD Housing Urban Development
6.360% 08/01/04 245
800,000 FNMA 5.750% 06/15/05 760
2,784
MORTGAGE OBLIGATIONS - 0.1%
PRINCIPAL AMOUNT
9,012 GNMA 8 1/2 07/15/21 9
VARIABLE DEMAND NOTES - 4.4%
PRINCIPAL AMOUNT
886,600 Firstar Bank Milwaukee,
N.A.- 6.16% 887
COMMERCIAL PAPER - 5.5%
PRINCIPAL AMOUNT
500,000 Campbell Soup Co.- 5.80% Due 01/21/00 498
600,000 Metlife Funding - 5.88% Due 01/28/00 597
1,095
Total Investments - 101.6%
(Cost $20,528) (a) 20,200
Other Assets Less Liabilities - (1.6%) (327)
Net Assets - 100% $19,873
</TABLE>
<PAGE 19>
MONETTA GOVERNMENT MONEY MARKET FUND
GOVERNMENT OBLIGATIONS - 100.7%
VALUE
PRINCIPAL AMOUNT (In Thousands)
<TABLE>
<CAPTION>
FEDERAL HOME LOAN BANK DISCOUNT - 32.4%
PRINCIPAL AMOUNT
<S> <C> <C>
570,000 Due 02/07/00 - 5.570% $ 567
415,000 Due 02/16/00 - 5.670% 412
220,000 Due 02/23/00 - 5.750% 218
1,197
FEDERAL FARM CREDIT - 15.3%
PRINCIPAL AMOUNT
570,000 Due 01/28/00 - 5.580% 568
FEDERAL NATIONAL MORTGAGE ASSOC. - 19.2%
PRINCIPAL AMOUNT
711,000 Due 01/21/00 - 5.250% 709
FEDERAL HOME LOAN MORTGAGE CORP. - 33.8%
PRINCIPAL AMOUNT
483,000 Due 01/10/00 - 5.620% 482
771,000 Due 01/13/00 - 5.770% 769
1,251
Total Investments - 100.7% 3,725
Other Assets Less Liabilities - (0.7%) (25)
Net Assets - 100% $3,700
</TABLE>
BALANCED FUND FOOTNOTE:
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $2,498, and aggregate gross unrealized
depreciation is $241, resulting in net unrealized appreciation of $2,257
(in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
INTERMEDIATE BOND FUND FOOTNOTE:
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $1, and aggregate gross unrealized depreciation is
$329, resulting in net unrealized depreciation of $328 (in thousands).
See accompanying notes to financial statements.
*Non-income producing security.
GOVERNMENT MONEY MARKET FUND FOOTNOTE:
(a) Cost is identical for book and tax purposes.
See accompanying notes to financial statements.
<PAGE 19>
STATEMENTS OF ASSETS AND LIABILITIES December 31, 1999
(In Thousands)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap Large-Cap
Monetta Equity Equity Equity
Fund Fund Fund Fund
Assets:
<S> <C> <C> <C> <C>
Investments at market value
(cost: $89,945; $3,278;
$14,701; $6,161; $7,152;
$20,528; $3,725) (Note 1) $139,429 $5,288 $20,684 $9,305
Cash 0 3 (a) 4
Receivables:
Interest and dividends 24 2 5 4
Securities sold 1,518 214 111 0
Fund shares sold 0 0 1 2
Total Assets 140,971 5,507 20,801 9,315
Liabilities:
Payables:
Custodial bank 75 0 0 0
Investment advisory fees
(Note 2) 102 3 12 5
Distribution and service
charges payable 0 1 16 5
Investments purchased 5,067 164 1,309 0
Fund shares redeemed 0 0 0 2
Accrued expenses 65 7 6 5
Total Liabilities 5,309 175 1,343 17
Net Assets 135,662 5,332 19,458 9,298
Analysis of net assets:
Paid in capital (b) 80,030 3,223 10,601 6,103
Accumulated undistributed
net investment income 520 0 0 0
Accumulated undistributed
net realized gain (loss) 5,628 99 2,874 51
Net unrealized appreciation
(depreciation)on investments 49,484 2,010 5,983 3,144
Net Assets $135,662 $5,332 $19,458 $9,298
Net asset value, offering
price, and redemption price
per share (5,974 shares of
capital stock and 244; 956;
463; 581; 1,940; 3,700 shares
of beneficial interest issued
and outstanding respectively) $22.71 $21.83 $20.36 $20.06
</TABLE>
<TABLE>
<CAPTION>
Intermediate Government
Balanced Bond Money Market
Fund Fund Fund
Assets:
<S> <C> <C> <C>
Investments at market value
(cost: $89,945; $3,278;
$14,701; $6,161; $7,152;
$20,528; $3,725) (Note 1) $9,409 $20,200 $3,725
Cash 0 0 0
Receivables:
Interest and dividends 58 269 0
Securities sold 0 0 0
Fund shares sold 0 1 0
Total Assets 9,467 20,470 3,725
Liabilities:
Payables:
Custodial bank 5 83 22
Investment advisory fees
(Note 2) 3 2 0
Distribution and service
charges payable 5 4 0
Investments purchased 0 504 0
Fund shares redeemed 0 0 0
Accrued expenses 5 4 3
Total Liabilities 18 597 25
Net Assets 9,449 19,873 3,700
Analysis of net assets:
Paid in capital (b) 6,960 20,251 3,700
Accumulated undistributed
net investment income 2 4 0
Accumulated undistributed
net realized gain (loss) 230 (54) 0
Net unrealized appreciation
(depreciation) on investments 2,257 (328) 0
Net Assets $9,449 $19,873 $3,700
Net asset value, offering price,
and redemption price per share
(5,974 shares of capital stock
and 244; 956; 463; 581; 1,940;
3,700 shares of beneficial
interest issued and outstanding
respectively) $16.27 $10.24 $1.00
</TABLE>
See accompanying notes to financial statements.(a) Rounds to less than
$1,000.(b) Amount for Monetta Fund represents $59 of $0.01 par value and
$79,971 of additional paid in capital, 100 million shares are authorized. Each
fund of Monetta Trust has an unlimited number of no par value share of
beneficial interest authorized.
<Page 20>
STATEMENTS OF OPERATIONS December 31, 1999
(In Thousands)
<TABLE>
<CAPTION>
Small-Cap Mid-Cap Large-Cap
Monetta Equity Equity Equity
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
Investment income and
expenses:
Investment income:
Interest $381 $18 $66 $21
Dividend 69 1 28 26
Other income *1,586 0 (a) 0
Total investment income 2,036 19 94 47
Expenses:
Investment advisory fee
(Note 2) 1,043 26 122 47
Distribution expense 0 9 40 15
Custodial fees and bank
cash management fee 47 5 10 4
Transfer and shareholder
servicing agent fee 424 42 31 37
Total expenses 1,514 82 203 103
Expenses waived and
reimbursed 0 (a) 0 0
Expenses net of waived and
reimbursed expenses 1,514 82 203 103
Net investment income
(loss) 522 (63) (109) (56)
Realized and unrealized gain
(loss) on investments:
Realized gain (loss) on
investments:
Proceeds from sales 241,842 9,329 34,459 4,779
Cost of securities sold 223,820 8,576 30,741 4,177
Net realized gain (loss)
on investments 18,022 753 3,718 602
Net unrealized appreciation
(depreciation) on
investments:
Beginning of period 22,489 755 2,452 837
End of period 49,484 2,010 5,983 3,144
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 26,995 1,255 3,531 2,307
Net realized and unrealized
gain (loss) on
investments 45,017 2,008 7,249 2,909
Net increase in net assets
from operations $45,539 $1,945 $7,140 $2,853
</TABLE>
<TABLE>
<CAPTION>
Intermediate Government
Balanced Bond Money Market
Fund Fund Fund
<S> <C> <C> <C>
Investment income and
expenses:
Investment income:
Interest $210 $812 $207
Dividend 23 0 0
Other income 0 (a) (a)
Total investment income 233 812 207
Expenses:
Investment advisory fee
(Note 2) 37 45 10
Distribution expense 23 32 4
Custodial fees and bank
cash management fee 5 9 2
Transfer and shareholder
servicing agent fee 23 9 13
Total expenses 88 95 29
Expenses waived and
reimbursed 0 (26) (15)
Expenses net of waived and
reimbursed expenses 88 69 14
Net investment income (loss) 145 743 193
Realized and unrealized gain
(loss) on investments:
Realized gain (loss) on
investments:
Proceeds from sales 13,835 14,770 24,825
Cost of securities sold 11,683 14,824 24,825
Net realized gain (loss) on
investments 2,152 (54) 0
Net unrealized appreciation
(depreciation) on investments:
Beginning of period 2,067 96 0
End of period 2,257 (328) 0
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 190 (424) 0
Net realized and unrealized
gain (loss) on investments 2,342 (478) 0
Net increase in net assets
from operations $2,487 $265 $193
</TABLE>
*Includes $1,583 thousand received from claims filed in reference to class
action suits primarily from ICN Pharmaceuticals and AHI Healthcare.
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.Page
<Page 21>
Statements of Changes in Net Assets December 31, 1999
(In Thousands)
<TABLE>
<CAPTION>
Small-Cap
Monetta Equity
Fund Fund
1999 1998 1999 1998
From investment activities:
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $522 $(925) $(63) $(70)
Net realized gain (loss) on
investments 18,022 (12,315) 753 (655)
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 26,995 (736) 1,255 638
Net increase (decrease) in net
assets from operations 45,539 (13,976) 1,945 (87)
Distribution from net
investment income 0 0 0 0
Distribution from short-term
capital gains, net (b) 0 (2,369) 0 (30)
Distribution from net realized
gains 0 (3,088) 0 0
Increase (decrease) in net
assets from investment
activities 45,539 (19,433) 1,945 (117)
From capital transactions
(Note 3):
Proceeds from shares sold 5,790 11,137 870 2,479
Net asset value of shares
issued through dividend
reinvestment 0 5,350 0 29
Cost of shares redeemed (40,356) (35,780) (1,463) (929)
Increase (decrease) in net
assets from capital
transactions (34,566) (19,293) 593 1,579
Total increase (decrease)
in net assets 10,973 (38,726) 1,352 1,462
Net assets at beginning
of period 124,689 163,415 3,980 2,518
Net assets at end of period $135,662 $124,689 $5,332 $3,980
Accumulated undistributed
net investment income (loss) $ 520 $ 0 $ 0 $ 0
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap Large-Cap
Equity Equity
Fund Fund
1999 1998 1999 1998
From investment activities:
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $(109) $31 $(56) $(21)
Net realized gain (loss) on
investments 3,718 (385) 602 (265)
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 3,531 411 2,307 638
Net increase (decrease) in net
assets from operations 7,140 57 2,853 352
Distribution from net
investment income 0 (31) 0 0
Distribution from short-term
capital gains, net (b) 350 (741) (34) (208)
Distribution from net realized
gains 0 (1,028) (196) (62)
Increase (decrease) in net
assets from investment
activities 6,790 (1,743) 2,623 82
From capital transactions
(Note 3):
Proceeds from shares sold 1,234 5,180 3,566 829
Net asset value of shares
issued through dividend
reinvestment 344 1,770 220 264
Cost of shares redeemed (7,830) (8,195) (1,296) (1,255)
Increase (decrease) in net
assets from capital
transactions (6,252) (1,245) 2,490 (162)
Total increase (decrease)
in net assets 538 (2,988) 5,113 (80)
Net assets at beginning
of period 18,920 21,908 4,185 4,265
Net assets at end of period $19,458 $18,920 $9,298 $4,185
Accumulated undistributed
net investment income (loss) $ 0 $ 0 $ 0 $ 0
</TABLE>
<Page 23/24>
<TABLE>
<CAPTION>
Intermediate
Balanced Bond
Fund Fund
1999 1998 1999 1998
From investment activities:
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) $145 $300 $743 $264
Net realized gain (loss) on
investments 2,152 (919) (54) 62
Net change in net unrealized
appreciation (depreciation)
on investments during the
period 190 1,716 (424) 39
Net increase (decrease) in net
assets from operations 2,487 1,097 265 365
Distribution from net
investment income (144) (300) (740) (264)
Distribution from short-term
capital gains, net (b) (765) (395) (7) (23)
Distribution from net realized
gains (237) (56) (10) (23)
Increase (decrease) in net
assets from investment
activities 1,341 346 (492) 55
From capital transactions
(Note 3):
Proceeds from shares sold 1,372 4,715 18,935 3,943
Net asset value of shares
issued through dividend
reinvestment 1,110 404 542 257
Cost of shares redeemed (8,863) (3,030) (5,788) (1,512)
Increase (decrease) in net
assets from capital
transactions (6,381) 2,089 13,689 2,688
Total increase (decrease)
in net assets (5,040) 2,435 13,197 2,743
Net assets at beginning
of period 14,489 12,054 6,676 3,933
Net assets at end of period $9,449 $14,489 $19,873 $6,676
Accumulated undistributed
net investment income (loss) $ 2 $ 2 $ 4 (a)
</TABLE>
Page 23
<TABLE>
<CAPTION>
Government
Money Market
Fund
1999 1998
From investment activities:
<S> <C> <C>
Operations:
Net investment income (loss) $193 $241
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 193 241
Distribution from net
investment income (193) (241)
Distribution from short-term
capital gains, net (b) 0 0
Distribution from net realized
gains 0 0
Increase (decrease) in net
assets from investment
activities 0 0
From capital transactions
(Note 3):
Proceeds from shares sold 6,542 5,724
Net asset value of shares
issued through dividend
reinvestment 186 233
Cost of shares redeemed (7,123) (6,326)
Increase (decrease) in net
assets from capital
transactions (395) (369)
Total increase (decrease)
in net assets (395) (369)
Net assets at beginning
of period 4,095 4,464
Net assets at end of period $3,700 $4,095
Accumulated undistributed
net investment income (loss) $ 0 $ 0
</TABLE>
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
(b) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
Page 23
Notes To Financial Statements December 31, 1999
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 with income as a secondary objective. 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.
The Monetta Family of Mutual Funds is comprised of Monetta Fund, Inc. and
each of the Trust Series and is collectively referred to as the "Funds".
The following is a summary of significant accounting policies followed by
the Funds in the preparation of their financial statements in accordance
with generally accepted accounting principles:
(a) Securities Valuation
Investments are stated at market value based on the last reported
sale price on national securities exchanges, or the NASDAQ Market,
on the last business day of the period. Listed securities and
securities traded on the over-the-counter markets that did not trade
on the last business day are valued at the mean between the quoted
bid and asked prices. Short-term securities, including all
securities held by the Government Money Market Fund, are stated at
amortized cost, which is substantially equivalent to market value.
(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.
Page 24
Notes To Financial Statements December 31, 1999
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, 1999,
Monetta Intermediate Bond Fund had accumulated capital loss carry
forwards for tax purposes of $28,202, which will expire on December
31, 2007.
Net realized gains or losses differ for financial reporting and tax
purposes as a result of losses from wash sales, post October 31 losses
which are not recognized for tax purposes until the first day of the
following fiscal year, and losses and gains from real estate
investment trusts.
(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-term capital gains
under generally accepted accounting principles and for federal
income tax purposes, the amount of distributable net investment
income for book and federal income tax purposes may differ. These
differences are permanent in nature and may result in distributions
in excess of book basis net investment income for certain periods.
Distributions from net realized gains for book purposes may include
short-term capital gains, which are included as ordinary income for tax
purposes.
For federal income tax purposes, a net operating loss recognized in
the current year cannot be used to offset future year's net
investment income. The Monetta Large-Cap Equity Fund and Monetta
Mid-Cap Equity Fund had net operating losses for tax purposes of
$56,522 and $109,495, respectively, which were offset by short-term
capital gains and were reclassified from accumulated undistributed
net investment loss to accumulated undistributed net realized gain.
The Monetta Small-Cap Equity Fund had net operating losses for tax
purposes of $63,347 which were reclassified from accumulated
undistributed net investment loss to capital.
For the year ended December 31, 1999, the Monetta Balanced Fund,
Monetta Intermediate Bond Fund, and Monetta Large-Cap Equity Fund
paid long-term capital gains of $237,045, $10,251, and $195,944,
respectively. For corporate shareholders of the Monetta Large-Cap
Equity Fund, 31% of the income distributions for the year ended
December 31, 1999, qualify for the dividend received deduction.
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 the year ended December
31, 1999, renumerations required to be paid to all interested directors
or trustees 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 1.0% for
Monetta Fund; 0.75% for the Small-Cap, Mid-Cap, and Large-Cap Equity Funds;
0.40% for the 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
Funds' ordinary operating expenses other than the advisory fee, distribution
charges (Trust only) and charges of the Funds' custodian and transfer agent.
Investment advisory fees waived for the year ended December 31, 1999, for
the Intermediate Bond Fund were $25,653 of total fees of $44,893.
Investment advisory fees waived, and 12B-1 fees waived through December
31, 1999, for the Government Money Market Fund were $10,257, and $4,103,
respectively. Additionally, brokerage commissions of $660, $4,725 and
$200, were paid by the Monetta Fund, Mid-Cap Fund, and Balanced Fund,
respectively to Monetta Investment Services, L.L.C. during the year ended
December 31, 1999.
Page 25
Notes To Financial Statements December 31, 1999
Monetta Financial Services, Inc., as of December 31, 1999 owned 45,645
shares or 7.9% of the Balanced Fund, 18,092 shares or 7.4% of the Small-
Cap Fund, 80,069 shares or 2.2% of the Government Money Market Fund and
7,629 shares or 1.6% of the Large-Cap Fund. Monetta Financial Services,
Inc. owns less than 1% of the Intermediate Bond Fund, the Monetta Fund,
and the Mid-Cap Equity Fund.
3. CAPITAL STOCK AND SHARE UNITS:There are 100,000,000 shares of $0.01 par
value capital stock authorized for the Monetta Fund. There is an unlimited
number of no par value shares of beneficial interest authorized for each
series of the Trust.
<TABLE>
<CAPTION>
Small-Cap Mid-Cap Large-Cap
Monetta Equity Equity Equity
(In Thousands) Fund Fund Fund Fund
<S> <C> <C> <C> <C>
1998 beginning shares 9,460 181 1,463 319
Shares sold 702 184 375 63
Shares issued upon
dividend reinvestment 412 2 144 23
Shares redeemed (2,241) (70) (588) (94)
Net increase (decrease)
in shares outstanding (1,127) 116 (69) (8)
1999 beginning shares 8,333 297 1,394 311
Shares sold 397 56 82 224
Shares issued upon
dividend reinvestment 0 0 23 13
Shares redeemed (2,756) (109) (543) (85)
Net increase (decrease)
in shares outstanding (2,359) (53) (438) 152
Ending shares 5,974 244 956 463
</TABLE>
<TABLE>
<CAPTION>
Government
Intermediate Money
Balanced Bond Market
(In Thousands) Fund Fund Fund
<S> <C> <C> <C>
1998 beginning shares 856 377 4,464
Shares sold 329 369 5,724
Shares issued upon
dividend reinvestment 31 24 233
Shares redeemed (215) (143) (6,326)
Net increase (decrease)
in shares outstanding 145 250 (369)
1999 beginning shares 1,001 627 4,095
Shares sold 87 1,815 6,542
Shares issued upon
dividend reinvestment 77 52 186
Shares redeemed (584) (554) (7,123)
Net increase (decrease)
in shares outstanding (420) 1,313 (395)
Ending shares 581 1,940 3,700
</TABLE>
4. PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities for the year
ended December 31, 1999, excluding short-term securities were: Monetta
Fund, $208,656,127 and $241,841,599 ; Small-Cap Fund, $8,472,282 and
$9,329,596; Mid-Cap Fund, $26,246,960 and $34,459,577; Large-Cap Fund,
$6,550,191 and $4,779,182; Balanced Fund, $6,568,626 and $13,834,833; and
Intermediate Bond Fund, $27,044,156 and $14,770,418. The cost of
purchases and proceeds from the sales of government securities included
in the preceding numbers were as follows: Balanced Fund, $402,609 and
$286,239; and Intermediate Bond Fund, $5,096,239 and $3,828,875.
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 0.25% for the Small-Cap, Mid-Cap, Large-Cap,
Balanced, and Intermediate Bond Funds and up to 0.10% for the Government
Money Market Fund are accrued daily. The distributor is Funds Distributor,
Inc.
Page 26
Notes To Financial Statements December 31, 1999
6. FINANCIAL HIGHLIGHTS: Financial highlights for Monetta Fund for a share of
capital stock outstanding throughout the period is presented below:
<TABLE>
<CAPTION>
MONETTA FUND
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value at
beginning of period $14.964 $17.274 $15.842 $15.591
Net investment income (loss) 0.075 (0.104) (0.041) (0.079)
Net realized and unrealized gain
(loss) on investments 7.672 (1.554) 4.223 0.330
Total from investment
operations: 7.747 (1.658) 4.182 0.251
Less:
Distributions from net investment
income 0.000 0.000 0.000 0.000
Distributions from short-term
capital gains, net (a) 0.000 (0.283) (1.910) 0.000
Distributions from net
realized gains 0.000 (0.369) (0.840) 0.000
Total distributions 0.000 (0.652) (2.750) 0.000
Net asset value at end of period $22.711 $14.964 $17.274 $15.842
Total return 51.80% (9.03%) 26.18% 1.60%
Ratio to average net assets:
Expenses 1.45% 1.36% 1.48% 1.38%
Net investment income 0.50% (0.64%) (0.24%) (0.51%)
Portfolio turnover 210.9% 107.5% 97.8% 204.8%
Net assets ($ millions) $135.7 $124.7 $163.4 $211.5
</TABLE>
<TABLE>
<CAPTION>
MONETTA FUND
1995
<S> <C>
Net asset value at
beginning of period $14.515
Net investment income (loss) 0.029
Net realized and unrealized gain
(loss) on investments 4.075
Total from investment
operations: 4.104
Less:
Distributions from net investment
income (0.028)
Distributions from short-term capital
gains, net (a) (3.000)
Distributions from net realized gains 0.000
Total distributions (3.028)
Net asset value at end of period $15.591
Total return 28.02%
Ratio to average net assets:
Expenses 1.36%
Net investment income 0.18%
Portfolio turnover 272.0%
Net assets ($ millions) $362.7
</TABLE>
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except distributions which are based on
shares outstanding at record date.
Page 27
Notes To Financial Statements December 31, 1999
Financial highlights for each Fund of the Trust for a share outstanding
throughout the period are as follows:
SMALL-CAP EQUITY FUND
<TABLE>
<CAPTION>
2/1/97
Through
1999 1998 12/31/97
<S> <C> <C> <C>
Net asset value at beginning of
period $13.396 $13.900 $10.000
Net investment income (loss) (0.264) (0.272) (0.148)
Net realized and unrealized
gain (loss) on investments 8.699 (0.136) 4.878
Total from investment operations 8.435 (0.408) 4.730
Less:
Distributions from net
investment income 0.000 0.000 0.000
Distributions from short-term
capital gains, net (a) 0.000 (0.096) (0.830)
Distributions from net
realized gains 0.000 0.000 0.000
Total distributions 0.000 (0.096) (0.830)
Net asset value at end of period $21.831 $13.396 $13.900
Total return* 62.91% (2.81%) 47.17%
Ratios to average net assets:
Expenses* 2.36% 2.39% 1.75%
Net investment income* (1.82%) (2.04%) (1.13%)
Portfolio turnover 265.0% 200.4% 138.8%
Net assets ($ thousands) $5,332 $3,980 $2,518
</TABLE>
<TABLE>
<CAPTION>
MID-CAP EQUITY FUND
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value at beginning of
period $13.571 $14.975 $14.814 $11.962
Net investment income (loss) (0.099) 0.022 (0.045) 0.044
Net realized and unrealized
gain (loss) on investments 7.225 (0.266) 4.296 2.852
Total from investment operations 7.126 (0.244) 4.251 2.896
Less:
Distributions from net
investment income 0.000 (0.022) 0.000 (0.044)
Distributions from short-term
capital gains, net (a) (0.342) (0.477) (1.452) 0.000
Distributions from net
realized gains 0.000 (0.661) (2.638) 0.000
Total distributions (0.342) (1.160) (4.090) (0.044)
Net asset value at end of period $20.355 $13.571 $14.975 $14.814
Total return* 53.39% (0.85%) 29.14% 24.20%
Ratios to average net assets:
Expenses* 1.25% 1.21% 1.26% 1.23%
Net investment income* (0.67%) 0.15% (0.28%) 0.32%
Portfolio turnover 170.4% 237.6% 137.8% 93.3%
Net assets ($ thousands) $19,458 $18,920 $21,908 $17,338
</TABLE>
<TABLE>
<CAPTION>
MID-CAP EQUITY FUND
1995
<S> <C>
Net asset value at beginning of
period $12.199
Net investment income (loss) 0.059
Net realized and unrealized
gain (loss) on investments 2.874
Total from investment operations 2.933
Less:
Distributions from net
investment income (0.050)
Distributions from short-term
capital gains, net (a) (2.990)
Distributions from net
realized gains (0.130)
Total distributions (3.170)
Net asset value at end of period $11.962
Total return* 24.54%
Ratios to average net assets:
Expenses 1.25%
Net investment income 0.44%
Portfolio turnover 254.4%
Net assets ($ thousands) $14,216
</TABLE>
*Ratios and total return for the year of inception are calculated from the date
of inception to the end of the period.
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except distributions that are based on
shares outstanding at record date.
Page 28
Notes To Financial Statements December 31, 1999
<TABLE>
<CAPTION>
LARGE-CAP EQUITY FUND
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value at beginning of
period $13.437 $13.359 $12.266 $10.571
Net investment income (loss) (0.147) (0.068) (0.007) 0.023
Net realized and unrealized
gain (loss) on investments 7.297 1.074 3.250 2.928
Total from investment operations 7.150 1.006 3.243 2.951
Less:
Distributions from net
investment income 0.000 0.000 0.000 (0.023)
Distributions from short-term
capital gains, net (a) (0.078) (0.714) (1.113) (1.188)
Distributions from net
realized gains (0.447) (0.214) (1.037) (0.045)
Total distributions (0.525) (0.928) (2.150) (1.256)
Net asset value at end of period $20.062 $13.437 $13.359 $12.266
Total return* 53.98% 8.99% 26.64% 28.20%
Ratios to average net assets:
Expenses* 1.66% 1.86% 1.51% 1.51%
Net investment income* (0.91%) (0.52%) (0.05%) 0.31%
Portfolio turnover 81.4% 207.5% 123.2% 152.7%
Net assets ($ thousands) $9,298 $4,185 $4,265 $2,288
</TABLE>
<TABLE>
<CAPTION>
LARGE-CAP EQUITY FUND
9/1/95
Through
12/31/95
<S> <C>
Net asset value at beginning of
period $10.000
Net investment income (loss) 0.005
Net realized and unrealized
gain (loss) on investments 0.570
Total from investment operations 0.575
Less:
Distributions from net
investment income (0.004)
Distributions from short-term
capital gains, net (a) 0.000
Distributions from net
realized gains 0.000
Total distributions (0.004)
Net asset value at end of period$10.571
Total return* 5.74%
Ratios to average net assets:
Expenses* 0.69%
Net investment income* 0.05%
Portfolio turnover 38.2%
Net assets ($ thousands) $1,072
</TABLE>
<TABLE>
<CAPTION>
BALANCED FUND
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value at beginning of
period $14.476 $14.078 $12.643 $10.605
Net investment income (loss) 0.239 0.290 0.264 0.132
Net realized and unrealized
gain (loss) on investments 3.741 0.838 2.398 2.598
Total from investment operations 3.980 1.128 2.662 2.730
Less:
Distributions from net
investment income (0.265) (0.286) (0.224) (0.132)
Distributions from short-term
capital gains, net (a) (1.468) (0.389) (0.927) (0.560)
Distributions from net
realized gains (0.455) (0.055) (0.076) 0.000
Total distributions (2.188) (0.730) (1.227) (0.692)
Net asset value at end of period $16.268 $14.476 $14.078 $12.643
Total return* 29.60% 8.59% 21.21% 25.94%
Ratios to average net assets:
Expenses* 0.95% 0.84% 1.02% 1.40%
Net investment income* 1.55% 2.06% 1.88% 1.54%
Portfolio turnover 71.3% 127.7% 115.9% 117.8%
Net assets ($ thousands) $9,449 $14,489 $12,054 $2,336
</TABLE>
<TABLE>
<CAPTION>
BALANCED FUND
9/1/95
Through
12/31/95
<S> <C>
Net asset value at beginning of
period $10.000
Net investment income (loss) 0.009
Net realized and unrealized
gain (loss) on investments 0.602
Total from investment operations 0.611
Less:
Distributions from net
investment income (0.004)
Distributions from short-term
capital gains, net (a) (0.002)
Distributions from net
realized gains 0.000
Total distributions (0.006)
Net asset value at end of period $10.605
Total return* 6.16%
Ratios to average net assets:
Expenses* 0.91%
Net investment income* 0.08%
Portfolio turnover 54.8%
Net assets ($ thousands) $410
</TABLE>
*Ratios and total return for the year of inception are calculated from the date
of inception to the end of the period.
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except distributions that are based on
shares outstanding at record date.
Page 29
Notes To Financial Statements December 31, 1999
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value at beginning of
period $10.652 $10.445 $10.208 $10.244
Net investment income 0.602 0.592 0.599 0.612
Net realized and unrealized gain
(loss) on investments (0.435) 0.269 0.278 0.019
Total from investment operations 0.167 0.861 0.877 0.631
Less:
Distributions from net
investment income (0.565) (0.577) (0.592) (0.612)
Distributions from short-term
capital gains, net (a) (0.004) (0.038) (0.047) (0.055)
Distributions from net realized
gains (0.006) (0.039) (0.001) 0.000
Total distributions (0.575) (0.654) (0.640) (0.667)
Net asset value at end of period $10.244 $10.652 $10.445 $10.208
Total return 1.60% 8.38% 8.91% 6.46%
Ratios to average net assets:
Expenses - Net 0.54% 0.55% 0.65% 0.55%
Expenses - Gross (b) 0.74% 0.75% 0.87% 0.85%
Net investment income-Net 5.78% 5.59% 5.82% 5.75%
Net investment income-Gross (b) 5.58% 5.39% 5.60% 5.45%
Portfolio turnover 115.2% 52.0% 96.7% 28.9%
Net assets ($ thousands) $19,873 $6,676 $3,933 $2,769
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
1995
<S> <C>
Net asset value at beginning of
period $9.624
Net investment income 0.655
Net realized and unrealized gain
(loss) on investments 0.740
Total from investment operations 1.395
Less:
Distributions from net
investment income (0.655)
Distributions from short-term
capital gains, net (a) (0.120)
Distributions from net realized
gains 0.000
Total distributions (0.775)
Net asset value at end of period $10.244
Total return 14.84%
Ratios to average net assets:
Expenses - Net 0.27%
Expenses - Gross (b) 0.75%
Net investment income-Net 5.94%
Net investment income-Gross (b) 5.46%
Portfolio turnover 75.1%
Net assets ($ thousands) $3,589
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
1999 1998 1997 1996
<S> <C> <C> <C> <C>
Net asset value at beginning of
period $1.000 $1.000 $1.000 $1.000
Net investment income 0.047 0.051 0.050 0.049
Net realized and unrealized gain
(loss) on investments 0.000 0.000 0.000 0.000
Total from investment operations 0.047 0.051 0.050 0.049
Less:
Distributions from net
investment income (0.047) (0.051) (0.050) (0.049)
Distributions from short-term
capital gains, net (a) 0.000 0.000 0.000 0.000
Distributions from net realized
gains 0.000 0.000 0.000 0.000
Total distributions (0.047) (0.051) (0.050) (0.049)
Net asset value at end of period $1.000 $1.000 $1.000 $1.000
Total return 4.85% 5.24% 5.15% 5.06%
Ratios to average net assets:
Expenses - Net 0.35% 0.32% 0.39% 0.31%
Expenses - Gross (b) 0.70% 0.68% 0.76% 0.67%
Net investment income-Net 4.71% 5.11% 5.02% 4.95%
Net investment income-Gross (b) 4.36% 4.76% 4.65% 4.59%
Portfolio turnover N/A N/A N/A N/A
Net assets ($ thousands) $3,700 $4,095 $4,464 $6,232
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT MONEY MARKET FUND
1995
<S> <C>
Net asset value at beginning of
period $1.000
Net investment income 0.059
Net realized and unrealized gain
(loss) on investments 0.000
Total from investment operations 0.059
Less:
Distributions from net
investment income (0.059)
Distributions from short-term
capital gains, net (a) 0.000
Distributions from net realized
gains 0.000
Total distributions (0.059)
Net asset value at end of period $1.000
Total return 5.87%
Ratios to average net assets:
Expenses - Net 0.07%
Expenses - Gross (b) 0.59%
Net investment income-Net 5.96%
Net investment income-Gross (b) 5.17%
Portfolio turnover N/A
Net assets ($ thousands) $4,393
</TABLE>
(a) Distributions of short-term capital gains are included as ordinary income
for tax purposes.
(b) Ratios of expenses and net income adjusted to reflect investment advisory
fees and charges of the Trust's custodian and transfer agent assumed by the
investment advisor.
The per-share ratios are calculated using the weighted average number of
shares outstanding during the period, except distributions which are based on
shares outstanding at record date.
Page 30
INDEPENDENT AUDITORS' REPORT
The Boards of Directors and Trustees and the Shareholders of
Monetta Fund, Inc., and Monetta Trust:
We have audited the accompanying statements of assets and liabilities of
Monetta Fund, Inc., and Monetta Trust (comprising, respectively, the
Small-Cap Equity Fund, Mid-Cap Equity Fund, Large-Cap Equity Fund, Balanced
Fund, Intermediate Bond Fund, and Government Money Market Fund), collectively
referred to as the "Funds," including the schedules of investments as of
December 31, 1999, the related statements of operations for the period then
ended, the statements of changes in net assets for each of the periods
presented in the two-year period then ended, and the financial highlights for
each of the periods presented in the five-year period then ended. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1999, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Monetta Fund, Inc., and each of the respective funds constituting the Monetta
Trust as of December 31, 1999, the results of their operations for the period
then ended, the changes in their net assets for each of the periods presented
in the two-year period then ended, and the financial highlights for each of the
periods presented in the five-year period then ended, in conformity with
generally accepted accounting principles.
KPMG LLP
Chicago, Illinois
January 18,2000
Page 31
