<PAGE> PAGE 1
000 B000000 12/31/1999
000 C000000 0000916687
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 MORGAN FUNSHARES, INC.
001 B000000 811-8244
001 C000000 2166871000
002 A000000 1301 EAST NINTH STREET, SUITE 3600
002 B000000 CLEVELAND
002 C000000 OH
002 D010000 44114
002 D020000 1800
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 BURTON DAVIS MORGAN
008 B000001 A
008 C000001 801-50111
008 D010001 HUDSON
008 D020001 OH
008 D030001 44236
010 A000001 MUTUAL SHAREHOLDER SERVICES, LLC
010 B000001 84-5821
010 C010001 CLEVELAND
010 C020001 OH
010 C030001 44114
010 C040001 1800
012 A000001 FIRSTAR BANK N.A.
012 B000001 84-
012 C010001 CINCINNATI
012 C020001 OH
012 C030001 45201
012 C040001 1118
<PAGE> PAGE 2
013 A000001 MCCURDY & ASSOCIATES CPA'S, INC.
013 B010001 WESTLAKE
013 B020001 OH
013 B030001 44145
015 A000001 FIRSTAR BANK NA
015 B000001 C
015 C010001 CINCINNATI
015 C020001 OH
015 C030001 45201
015 C040001 1118
015 E010001 X
018 000000 Y
019 A000000 N
019 B000000 0
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 C000001 0
022 D000001 0
022 C000002 0
022 D000002 0
022 C000003 0
022 D000003 0
022 C000004 0
022 D000004 0
022 C000005 0
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 0
023 D000000 0
024 000000 N
026 A000000 N
026 B000000 Y
026 C000000 Y
<PAGE> PAGE 3
026 D000000 Y
026 E000000 Y
026 F000000 Y
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 150000
048 A020000 1.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 150000
048 K020000 0.750
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
<PAGE> PAGE 4
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 Y
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
<PAGE> PAGE 5
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 0
071 B000000 0
071 C000000 8960
071 D000000 0
072 A000000 12
072 B000000 4
072 C000000 129
072 D000000 0
072 E000000 0
072 F000000 90
072 G000000 0
072 H000000 0
072 I000000 40
072 J000000 7
072 K000000 0
072 L000000 11
072 M000000 1
072 N000000 4
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 10
072 S000000 16
072 T000000 0
<PAGE> PAGE 6
072 U000000 0
072 V000000 0
072 W000000 0
072 X000000 179
072 Y000000 0
072 Z000000 -46
072AA000000 0
072BB000000 0
072CC010000 0
072CC020000 377
072DD010000 0
072DD020000 0
072EE000000 0
073 A010000 0.0000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 0
074 C000000 156
074 D000000 0
074 E000000 0
074 F000000 8551
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 15
074 M000000 0
074 N000000 8722
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 74
074 S000000 0
074 T000000 8648
074 U010000 1176
074 U020000 0
074 V010000 7.35
074 V020000 0.00
074 W000000 0.0000
074 X000000 261
074 Y000000 0
075 A000000 0
075 B000000 9061
076 000000 6.75
077 A000000 Y
<PAGE> PAGE 7
077 B000000 Y
077 Q010000 Y
078 000000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMP. OF PITTS.
080 C000000 175
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 COMMON STOCK
087 A020000 617343108
087 A030000 MFUN
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE ROBERT PINCUS
TITLE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 3,790,429
<INVESTMENTS-AT-VALUE> 8,707,423
<RECEIVABLES> 0
<ASSETS-OTHER> 15,301
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,722,724
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 74,267
<TOTAL-LIABILITIES> 74,267
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,887,652
<SHARES-COMMON-STOCK> 1,175,990
<SHARES-COMMON-PRIOR> 1,175,990
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (156,189)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,916,994
<NET-ASSETS> 8,648,457
<DIVIDEND-INCOME> 129,235
<INTEREST-INCOME> 3,886
<OTHER-INCOME> 0
<EXPENSES-NET> 179,432
<NET-INVESTMENT-INCOME> (46,311)
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (376,988)
<NET-CHANGE-FROM-OPS> (423,299)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (423,299)
<ACCUMULATED-NII-PRIOR> (20,863)
<ACCUMULATED-GAINS-PRIOR> (74,001)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 90,604
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 179,432
<AVERAGE-NET-ASSETS> 9,191,454
<PER-SHARE-NAV-BEGIN> 7.71
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> (0.32)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 7.35
<EXPENSE-RATIO> 1.98
</TABLE>
Board of Directors
Morgan FunShares, Inc.
In planning and performing our audit of the financial statements
of Morgan FunShares, Inc. for the year ended December 31, 1999,
we considered its internal control structure, including proce
dures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control
structure.
The management of Morgan FunShares, Inc. is responsible for
establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgments by man
agement are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two
of the objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or
disposition and transactions are executed in accordance with
management's authorization and recorded properly to permit prepa
ration of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control struc
ture, errors or irregularities may occur and may not be detected.
Also, projection of any evaluation of the structure to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control struc
ture that might be material weaknesses under standards estab
lished by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or opera
tion of the specific internal control structure elements does not
reduce to a relatively low level the risk that errors or irregu
larities in amounts that would be material in relation to the
financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no mat
ters involving the internal control structure, including
procedures for safeguarding securities, that we consider to be
material weaknesses as defined above as of December 31, 1999.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
January 20, 2000
