<PAGE> 1
MAGNA FUNDS
LETTER TO SHAREHOLDERS
We are pleased to bring you this Magna Funds Semi-Annual Report for the six
months ended February 29, 2000. The Magna Funds are comprised of the Magna
Growth & Income Fund, Magna Intermediate Government Bond Fund and Magna Money
Market Fund. Growth in net assets was strong during the period and the funds now
exceed $400 million under management.
Magna Growth & Income Fund returned 5.53%(1) over the last six months, excluding
sales charges. The Magna Intermediate Government Bond Fund had a total return of
0.48%(2), excluding sales charges over the last six months. The Magna Money
Market Fund had a 7-day average yield of 5.41% as of February 29, 2000.
This report includes the schedules of investments, comments from the portfolio
managers, and other important information for each fund. We are looking at
adding new portfolios to the Magna Funds in an attempt to better serve our
shareholders. We encourage you to read the report and thank you for your
continued support.
Sincerely,
/s/ Walter B. Grimm
Walter B. Grimm
President
- ---------------
(1) With a maximum sales charge of 4.00%, the total return for the six months
ended February 29, 2000 would have been 1.30%.
(2) With a maximum sales charge of 4.00%, the total return for the six months
ended February 29, 2000 would have been -3.52%.
<PAGE> 2
MAGNA GROWTH & INCOME FUND
PORTFOLIO MANAGER REPORT
COMMENTS FROM DISCUSSIONS WITH GARY J. GUTHRIE, PORTFOLIO MANAGER
HOW HAS THE FUND PERFORMED
OVER THE PAST SIX-MONTH AND
ONE-YEAR PERIODS?
The Fund has a total return of 5.53%(1) and
12.40%(1), exclusive of sales load for the six
months and one-year ended February 29, 2000,
respectively. This compares with the S&P 500
Index(3) ("S&P 500") returns of 4.09% and 11.71%
for the period. The Fund had a five-year average
annual return of 23.55%(1) for the period ending
February 29, 2000 and an average annual return of
21.47%(1) since the Fund's inception of September
1, 1994, exclusive of sales loads.
WHAT IS THE COMPOSITION OF
THE
PORTFOLIO AT THIS TIME? The Fund is currently invested in 69 companies,
which represent 30 industries. We are broadly
diversified with the single largest equity holding
at 5.9% of the portfolio while the ten largest
positions represent 33.2% of the portfolio as of
February 29, 2000*.
WHAT COMMENTS DO YOU HAVE
ON
THE MARKET AND FUND
PERFORMANCE? Divergence between technology shares and the
broader market indexes continued as both the
DJIA(2) and S&P 500(3) ("S&P 500") posted year to
date losses as compared to the surging NASDAQ.
Traditional measures of valuation provided little
protection while the debate of "old" economy versus
"new" economy grew louder.
WHAT IS YOUR OUTLOOK FOR
THE NEXT
SIX MONTHS? Expected Fed rate increases continue to overshadow
the market outlook. Technology remains the market
leader as the "old" economy stocks struggle to find
a base amid the market downturn. The combined
impact of higher interest rates and the doubling of
oil prices have yet to dampen economic growth.
- ---------------
(1) With a maximum sales charge of 4.00%, the total return for the six months
and fiscal year ended February 29, 2000 would have been 1.30% and 7.92%,
respectively; the five year return for the period ended February 29, 2000
and the return since inception with a maximum sales charge would have been
22.55% and 20.57%, respectively.
(2) The Dow Jones Industrial Average is a price-weighted average of 30 actively
traded blue-chip stocks, primarily industrials including some
service-oriented firms. The average is computed by adding the prices of the
30 stocks and dividing by a denominator adjusted over the years for stock
splits, stock dividends, and stock substitutions. The average is quoted in
points, not dollars. An investor cannot invest directly in an index.
(3) The Standard & Poor's 500 Index is a capitalization-weighted index of 500
stocks. The index is designed to measure performance of the broad domestic
economy through changes in the aggregate market value of 500 stocks
representing all major industries. An investor cannot invest directly in an
index.
* The composition of the Fund's holdings is subject to change.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost.
2
<PAGE> 3
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
PORTFOLIO MANAGER REPORT
COMMENTS FROM A CONVERSATION WITH L. CLARK ZEDRIC, PORTFOLIO MANAGER
HOW DID THE FUND PERFORM
DURING
THE PAST 12 MONTHS, AND
DURING THE
FIRST TWO MONTHS OF 2000? The Fund provided a total return of (1.97)%(1)
exclusive of sales loads, for the 12-month period
ended February 29, 2000. In comparison, the Lehman
Brothers 5-10 Year Government/Corporate Bond Index
fell 0.62% and the Lehman Brothers 1- Year
Government/Corporate Bond Index rose 3.02%. The
Fund had a five-year average annual return of
5.13%(1) for the period ending February 29, 2000
and an average annual return of 4.94%(1) since the
Fund's inception of September 1, 1994, exclusive of
sales loads.
Through February 29, 2000, the Fund's year-to-date
return, exclusive of sales charges, was 0.28%(1).
During the same period, the Lehman Brothers 5-10
Year Government/Corporate Bond Index rose 0.25%,
and the Lehman Brothers 1-5 Year
Government/Corporate Bond Index rose 0.55%.
THE FUND'S 12 MONTH RETURN
DECLINED DRAMATICALLY FROM
THE SAME
PERIOD ONE YEAR EARLIER.
WHAT
PRIMARILY ACCOUNTED FOR THE
DECLINE? During the 12 month period, interest rates rose
substantially in the 1-10 year range. The ten year
bond went from 5.39% at month-end February 1999 to
6.41% at month-end February 2000. Because bond
values rise as interest rates fall, this rise in
rates pushed our total return lower. The Fund is
concentrated in the 5-10 year area.
EVEN THOUGH THE FUND
DECLINED, YOU
WERE ABLE TO MAINTAIN A
HIGH QUALITY
PORTFOLIO AND A RELATIVELY
GENEROUS
COUPON RATE? Yes. As of February 29, 2000 over 65% of the
portfolio was invested in Federal Agency Bonds and
U.S. Treasury Notes with the remainder in high
quality corporate paper and cash. The Fund's
dominant credit rating was AAA; the Fund owns
nothing below an A rating. As of February 29, 2000
the average portfolio coupon rate(2) was almost
7.00%*.
HOW HAVE YOU POSITIONED THE
FUND
FOR THE COMING YEAR? An essential part of our strategy is to maintain a
"ladder" with bond maturities spread over several
years. This helps us to lessen the impact of
interest rate fluctuations on the value of the
portfolio and ensures that some bonds mature each
year. We continue the "ladder" strategy and
recently have been extending the length slightly by
purchasing some bonds with 10 to 15 years maturity,
modestly increasing average life and duration. This
action reflects our view that interest rates after
rising well over a full percentage point in the 1-5
year range, may increase slightly but then should
decline in the months ahead. We do not want to
deviate from our overall strategy. We feel that
even though the 5-10 year range was the worst
performer this past year it could very well be the
best in the year ahead.
- ---------------
(1) With a maximum sales charge of 4.00%, the total return for the 12-month
period ended February 29, 2000 would have been (5.89)%, and the total return
for the 2000 year-to-date period (through February 29, 2000) would have been
(3.71)%; the five year return for the period ended February 29, 2000 and the
return since inception with a maximum sales charge would have been 4.28% and
4.16%, respectively.
(2) The interest rate stated on the face of a bond represents the percentage of
interest to be paid by the issuer on the face value of the bond.
(*) The composition of the Fund's holdings is subject to change.
The performance of the Magna Intermediate Government Bond Fund is measured
against the Lehman Brothers 1-5 Year Government/ Corporate Bond Index and the
Lehman Brothers 5-10 Year Government/Corporate Bond Index; these two indices are
unmanaged and generally represent a range of 1-5 and 5-10-year maturities. An
investor cannot invest directly in an index.
Past performance is no guarantee of future results. Investment return and net
asset value will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than original cost.
3
<PAGE> 4
MAGNA MONEY MARKET FUND(1)
PORTFOLIO MANAGER REPORT
COMMENTS FROM DISCUSSIONS WITH LUCY KASSON, PORTFOLIO MANAGER
WHAT IS THE OBJECTIVE OF
THIS
FUND? The Magna Money Market Fund seeks maximum current
income consistent with preservation of capital and
liquidity. The net assets of the Fund as of
February 29, 2000 were approximately $188.3
million.
WHAT WERE THE CONDITIONS IN
THE
MONEY MARKETS DURING THE
SIX
MONTHS ENDED FEBRUARY 29,
2000? Money market investments remained attractive
throughout the past six months, and the market
continued to experience record inflows of investor
cash. U.S. economic data remained strong with
investors preferring to concentrate on more
conservative high-quality investments like money
market funds.
WHAT WAS YOUR STRATEGY
DURING
THE PERIOD? During the recent period, we kept the Fund in a
flexible position. This strategy meant keeping
portfolio duration relatively neutral in order to
take advantage of incrementally higher yields as
they became available.
WHAT TYPE OF SECURITIES
CONSTITUTED THE LARGEST
HOLDINGS*? We positioned the largest holdings of the Fund to
include U.S. government securities and agency
securities, followed by top-rated commercial paper,
and bank and corporate obligations.
HOW WILL YOU MANAGE THE
FUND
GOING FORWARD? We believe the Fed will tighten until the economy
slows. This would allow new issues to offer higher
yields, potentially attracting investors to money
market funds. We continue to favor an "ease into
the market" approach, keeping the credit quality
high.
- ---------------
(*) The composition of the Fund's holdings is subject to change.
(1) An investment in the Fund is not insured or guaranteed by the FDIC 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.
4
<PAGE> 5
MAGNA GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- (88.8%):
AIR TRAVEL -- (0.6%):
Delta Air Lines, Incorporated.......................... 20,000 $ 912,500
------------
ALUMINUM -- (1.3%):
Aluminum Company of America, Incorporated.............. 30,000 2,055,000
------------
AUTOMOBILES & TRUCKS -- (1.1%):
Ford Motor Company..................................... 40,000 1,665,000
------------
BREWERY -- (1.4%):
Anheuser-Busch Companies, Incorporated................. 35,000 2,244,375
------------
CHEMICALS -- (2.5%):
DuPont (EI) de Nemours & Company....................... 52,933 2,673,116
Monsanto Company....................................... 35,000 1,358,438
------------
4,031,554
------------
CLOTHING -- (0.7%):
TJX Companies, Incorporated............................ 70,000 1,115,625
------------
COMPUTER SOFTWARE -- (4.9%):
Computer Sciences Corporation*......................... 40,000 3,152,500
Microsoft Corporation*................................. 50,800 4,540,250
------------
7,692,750
------------
COMPUTERS & BUSINESS EQUIPMENT -- (16.3%):
Cisco Systems, Incorporated*........................... 57,500 7,600,781
Dell Computer Corporation*............................. 80,000 3,265,000
Gateway Incorporated*.................................. 40,000 2,750,000
Hewlett-Packard Company................................ 20,000 2,690,000
Sun Microsystems, Incorporated*........................ 100,000 9,524,999
------------
25,830,780
------------
DIVERSIFIED OPERATIONS -- (2.9%):
General Electric Company............................... 35,000 4,626,563
------------
</TABLE>
continued
5
<PAGE> 6
MAGNA GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED):
DRUGS & HEALTHCARE -- (12.1%):
Amgen, Incorporated*................................... 80,000 $ 5,454,999
Bristol-Myers Squibb Company........................... 40,000 2,272,500
Cardinal Health, Incorporated.......................... 25,000 1,031,250
Johnson & Johnson...................................... 20,000 1,435,000
Lilly (Eli) & Company.................................. 19,000 1,129,313
Merck & Company, Incorporated.......................... 25,200 1,551,375
Pfizer, Incorporated................................... 91,000 2,923,375
Warner-Lambert Company................................. 40,000 3,422,500
------------
19,220,312
------------
ELECTRONIC COMPONENTS -- (5.2%):
Applied Materials, Incorporated.*...................... 20,000 3,658,750
Intel Corporation...................................... 40,000 4,520,000
------------
8,178,750
------------
FINANCE & BANKING -- (4.9%):
Bank Of America Corporation............................ 25,000 1,151,563
Bank One Corporation................................... 33,200 856,975
Chase Manhattan Corporation............................ 30,000 2,388,750
First Union Corporation................................ 30,000 885,000
Mellon Financial Corporation........................... 36,600 1,102,575
Southtrust Corporation................................. 30,000 688,125
Wells Fargo Company.................................... 20,000 661,250
------------
7,734,238
------------
FINANCIAL SERVICES -- (2.8%):
Citigroup, Incorporated................................ 32,500 1,679,844
Fannie Mae............................................. 40,000 2,120,000
Hartford Financial Services Group...................... 20,000 625,000
------------
4,424,844
------------
</TABLE>
continued
6
<PAGE> 7
MAGNA GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED):
FOOD & BEVERAGES -- (0.7%):
Coca-Cola Company...................................... 16,000 $ 775,000
PepsiCo., Incorporated................................. 10,600 341,850
------------
1,116,850
------------
HOUSEHOLD PRODUCTS -- (2.0%):
Dial Corporation....................................... 85,000 1,221,875
Procter & Gamble Company............................... 22,000 1,936,000
------------
3,157,875
------------
INSURANCE -- (0.6%):
Allstate Corporation................................... 45,000 877,500
------------
INTERNATIONAL OIL -- (4.3%):
Exxon Mobil Corporation................................ 69,868 5,261,934
Texaco, Incorporated................................... 32,000 1,518,000
------------
6,779,934
------------
MEDICAL INSTRUMENTS -- (1.8%):
Medtronic, Incorporated................................ 60,000 2,906,250
------------
MULTIMEDIA -- (2.5%):
Time Warner, Incorporated.............................. 46,600 3,984,300
------------
OIL & GAS -- (2.7%):
Atlantic Richfield Company............................. 30,000 2,130,000
Conoco Class B......................................... 79,847 1,571,988
Ultramar Diamond Shamrock Corporation.................. 25,000 542,188
------------
4,244,176
------------
PAPER -- (1.9%):
Boise Cascade Corp..................................... 20,000 596,250
International Paper Company............................ 30,000 1,104,375
Kimberly-Clark Corporation............................. 25,000 1,292,188
------------
2,992,813
------------
</TABLE>
continued
7
<PAGE> 8
MAGNA GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED):
RAILROADS -- (0.3%):
Burlington Northern Santa Fe Corporation............... 23,800 $ 468,563
------------
RESTAURANTS -- (0.6%):
McDonald's Corporation................................. 29,400 927,938
------------
RETAIL -- (2.2%):
Best Buy Co., Incorporated*............................ 20,000 1,087,500
Lowe's Cos., Incorporated.............................. 10,000 476,250
Wal Mart Stores, Incorporated.......................... 40,000 1,947,500
------------
3,511,250
------------
TELECOMMUNICATION EQUIPMENT -- (4.5%):
Lucent Technologies, Incorporated...................... 50,000 2,974,999
Nokia Corp. -- ADR..................................... 8,000 1,586,500
Nortel Networks Corporation............................ 10,000 1,115,000
Tellabs, Incorporated*................................. 30,000 1,440,000
------------
7,116,499
------------
TELECOMMUNICATIONS -- (3.1%):
MCI Worldcom, Incorporated*............................ 37,500 1,673,438
Sprint Corporation..................................... 20,000 1,220,000
Sprint Corporation (PCS)*.............................. 40,000 2,069,999
------------
4,963,437
------------
TOBACCO -- (0.5%):
Philip Morris Companies, Incorporated.................. 40,000 802,500
------------
TRANSPORTATION & SHIPPING -- (0.7%):
United Parcel Service, Incorporated Class B............ 20,000 1,092,500
------------
UTILITIES -- ELECTRIC -- (0.7%):
GPU, Incorporated...................................... 25,000 621,875
New Century Energies, Incorporated..................... 20,000 541,250
------------
1,163,125
------------
</TABLE>
continued
8
<PAGE> 9
MAGNA GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ------------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED):
UTILITIES -- TELEPHONE -- (3.0%):
GTE Corporation........................................ 29,500 $ 1,740,500
SBC Communications, Incorporated....................... 29,200 1,109,600
U S West, Incorporated................................. 26,500 1,924,562
------------
4,774,662
------------
TOTAL COMMON STOCKS -- (Cost $81,303,335)................... 140,612,463
------------
PREFERRED STOCKS -- (4.0%):
BANKING -- (0.4%)
Harris Preferred Capital, Series A*.................... 30,000 594,375
------------
FINANCIAL SERVICES -- (1.7%):
AT & T Capital Corporation*............................ 40,000 950,000
MediaOne Financial Trust*.............................. 40,000 1,000,000
Merrill Lynch Capital Trust*........................... 40,000 855,000
------------
2,805,000
------------
INSURANCE -- (0.5%):
Allstate Corporation*.................................. 35,000 713,125
------------
OIL & GAS -- (0.2%):
UDS Capital, Series I*................................. 20,000 377,500
------------
TELECOMMUNICATIONS -- (0.5%):
Motorola Capital Trust*................................ 40,000 805,000
------------
UTILITIES -- (0.7%):
Duke Energy Capital Trust*............................. 30,000 626,250
KCPL Financing, Series I*.............................. 20,000 452,500
------------
1,078,750
------------
TOTAL PREFERRED STOCKS -- (Cost $7,375,000)................. 6,373,750
------------
</TABLE>
continued
9
<PAGE> 10
MAGNA GROWTH & INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- (8.4%)
UNITED STATES TREASURY NOTES -- (3.8%)
5.50%, 3/31/2000....................................... 2,000,000 $ 1,999,685
5.375%, 6/30/2000...................................... 2,000,000 1,996,240
5.125%, 8/31/2000...................................... 2,000,000 1,990,320
------------
5,986,245
------------
REPURCHASE AGREEMENT -- (4.6%)
Fifth Third Bank
5.77%, maturing 3/1/2000 (Collateralized by
$7,713,000 Freddie Mac, 6.50%, 2/1/2013, Market
Value -- $7,406,890)............................ 7,260,992 7,260,992
------------
TOTAL SHORT TERM INVESTMENTS -- (Cost $13,260,666).......... 13,247,237
------------
TOTAL INVESTMENTS -- (Cost $101,939,001) (a) -- 101.2%...... 160,233,450
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.2)%............. (1,890,422)
------------
TOTAL NET ASSETS -- 100.0%.................................. $158,343,028
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $158,343,028.
(a) Cost for federal income tax and financial reporting is substantially the
same.
* Represents non-income producing securities.
ADR -- American Depository Receipt
See notes to financial statements.
10
<PAGE> 11
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
CORPORATE BONDS -- (32.1%):
FINANCE & BANKING -- (16.9%):
Bear Stearns Companies, Incorporated,
7.00%, 3/1/2007...................................... $1,000,000 $ 939,900
Citigroup Incorporated,
6.20%, 3/15/2009..................................... 500,000 450,960
Ford Capital BV,
9.375%, 5/15/2001.................................... 380,000 389,040
General Motors Acceptance Corporation,
6.125%, 11/15/2008................................... 1,000,000 901,681
Inter-American Development Bank,
6.00%, 5/13/2009..................................... 500,000 444,250
Merrill Lynch & Company, Incorporated
8.00%, 2/1/2002...................................... 325,000 329,284
8.00%, 6/1/2007...................................... 500,000 504,320
Morgan Stanley Dean Witter, Incorporated
8.10%, 6/24/2002..................................... 460,000 466,458
6.75%, 10/15/2013.................................... 1,000,000 911,350
National City Bank of Kentucky,
6.30%, 2/15/2011, OID................................ 1,000,000 880,910
Nationsbank Corporation
6.375%, 2/15/2008.................................... 1,000,000 915,690
6.60%, 5/15/2010..................................... 1,000,000 905,540
7.04%, 8/15/2012..................................... 500,000 468,310
Northern Trust Corporation,
7.10%, 8/1/2009...................................... 1,500,000 1,424,249
Norwest Financial, Incorporated,
7.20%, 5/1/2007...................................... 1,000,000 971,760
St. Paul Companies, Incorporated,
7.29%, 8/28/2007..................................... 500,000 492,985
Swiss Bank of New York,
7.00%, 10/15/2015.................................... 1,000,000 926,350
Wachovia Corporation,
6.375%, 2/1/2009..................................... 1,000,000 909,720
-----------
13,232,757
-----------
</TABLE>
continued
11
<PAGE> 12
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
CORPORATE BONDS -- (CONTINUED):
INDUSTRIALS -- (7.1%):
Dupont Corporation,
8.125%, 3/15/2004.................................... $ 265,000 $ 272,865
Ford Motor Company
9.00%, 9/15/2001..................................... 280,000 286,944
9.50%, 9/15/2011..................................... 230,000 258,304
J.C. Penney Company, Series A,
6.875%, 10/15/2015................................... 1,500,000 1,208,927
Lilly (Eli) & Company,
8.125%, 12/1/2001.................................... 500,000 509,510
Loews Corporation,
6.75%, 12/15/2006.................................... 500,000 459,815
Monsanto Company,
8.75%, 5/15/2001..................................... 200,000 203,686
Philip Morris Companies, Incorporated
8.75%, 6/1/2001...................................... 250,000 252,418
7.50%, 1/15/2002..................................... 360,000 356,800
7.25%, 1/15/2003..................................... 700,000 683,858
R.R. Donnelley & Sons Company,
7.00%, 1/1/2003...................................... 700,000 691,943
Rockwell International Corporation,
8.375%, 2/15/2001.................................... 280,000 283,688
Weyerhaeuser Company,
8.94%, 4/9/2001...................................... 100,000 102,103
-----------
5,570,861
-----------
TRANSPORTATION -- (0.3%):
Norfolk & Southern Railway Company,
7.75%, 8/15/2005..................................... 225,000 222,368
-----------
</TABLE>
continued
12
<PAGE> 13
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
CORPORATE BONDS -- (CONTINUED):
UTILITIES -- (7.8%):
Alabama Power,
5.375%, 10/1/2008.................................... $1,000,000 $ 857,945
AT&T Corporation,
7.125%, 1/15/2002.................................... 960,000 960,941
Carolina Telephone & Telegraph Company,
7.25%, 12/15/2004.................................... 1,000,000 988,880
General Electric Company,
7.73%, 2/13/2002..................................... 400,000 403,664
National Rural Utilities
7.30%, 9/15/2006..................................... 1,000,000 991,110
7.20%, 10/1/2015..................................... 450,000 427,019
Northern Telecom, Limited,
8.75%, 6/12/2001..................................... 430,000 438,462
Pacific Bell,
7.25%, 7/1/2002...................................... 1,000,000 999,120
-----------
6,067,141
-----------
TOTAL CORPORATE BONDS -- (Cost $26,559,682)................. 25,093,127
-----------
GOVERNMENT AND AGENCY BONDS -- (64.3%):
FEDERAL AGENCIES -- (60.9%):
FANNIE MAE -- (22.7%):
7.65%, 3/10/2005..................................... 500,000 510,545
6.83%, 10/10/2007.................................... 500,000 472,970
6.58%, 12/17/2007.................................... 1,000,000 938,590
6.27%, 2/13/2008..................................... 1,000,000 923,280
6.14%, 9/2/2008...................................... 1,000,000 912,190
6.00%, 12/18/2008.................................... 1,000,000 899,220
6.03%, 2/2/2009...................................... 1,000,000 902,030
7.00%, 12/5/2011..................................... 1,000,000 939,250
7.00%, 8/14/2012..................................... 1,500,000 1,385,385
7.00%, 8/27/2012..................................... 1,500,000 1,396,875
7.00%, 10/29/2012.................................... 500,000 461,640
6.26%, 11/26/2012.................................... 1,000,000 909,823
7.00%, 3/4/2013...................................... 1,000,000 917,500
6.25%, 2/18/2014..................................... 2,000,000 1,750,940
6.37%, 2/25/2014..................................... 2,000,000 1,765,939
</TABLE>
continued
13
<PAGE> 14
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
GOVERNMENT AND AGENCY BONDS -- (CONTINUED):
FEDERAL AGENCIES -- (CONTINUED):
FANNIE MAE -- (CONTINUED):
7.00%, 12/12/2016.................................... $1,000,000 $ 923,011
6.75%, 8/25/2021..................................... 920,000 883,770
7.05%, 4/25/2022..................................... 925,000 883,949
-----------
17,776,907
-----------
FEDERAL FARM CREDIT BANK -- (5.7%):
6.20%, 11/30/2009.................................... 1,000,000 922,190
6.01%, 6/16/2010..................................... 2,000,000 1,793,740
6.125%, 1/22/2013.................................... 1,000,000 886,560
6.27%, 1/26/2016..................................... 1,000,000 887,660
-----------
4,490,150
-----------
FEDERAL HOME LOAN BANK -- (16.4%):
5.26%, 10/26/2004.................................... 500,000 461,015
8.06%, 3/10/2005..................................... 500,000 496,560
7.325%, 5/30/2007.................................... 1,000,000 984,690
6.025%, 4/8/2008..................................... 1,000,000 921,870
6.12%, 8/26/2008..................................... 500,000 455,780
5.655%, 12/18/2008................................... 500,000 442,030
7.01%, 12/4/2012..................................... 1,000,000 919,840
6.125%, 1/9/2013..................................... 2,000,000 1,781,560
6.73%, 9/17/2013..................................... 1,000,000 904,220
5.83%, 9/30/2013..................................... 1,000,000 862,190
6.10%, 2/19/2014..................................... 1,000,000 863,440
6.045%, 5/12/2014.................................... 1,000,000 877,190
6.625%, 6/30/2014.................................... 1,000,000 915,160
8.00%, 8/19/2014..................................... 1,000,000 976,870
8.00%, 9/3/2014...................................... 1,000,000 955,800
-----------
12,818,215
-----------
FREDDIE MAC -- (12.6%):
7.90%, 9/19/2001..................................... 280,000 284,245
7.50%, 1/1/2007...................................... 11,520 11,394
7.14%, 12/15/2007.................................... 1,000,000 1,011,550
6.50%, 5/1/2008...................................... 55,005 53,634
6.135%, 2/15/2011.................................... 1,000,000 902,030
</TABLE>
continued
14
<PAGE> 15
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
GOVERNMENT AND AGENCY BONDS -- (CONTINUED):
FEDERAL AGENCIES -- (CONTINUED):
FREDDIE MAC -- (CONTINUED):
6.77%, 3/21/2011..................................... $1,000,000 $ 921,130
6.125%, 7/28/2011.................................... 1,000,000 882,030
6.71%, 12/5/2011..................................... 2,000,000 1,859,060
7.27%, 2/6/2012...................................... 1,000,000 965,620
7.49%, 4/16/2012..................................... 1,000,000 980,310
7.09%, 11/22/2016.................................... 500,000 464,530
7.00%, 1/15/2023..................................... 1,000,000 923,120
7.00%, 12/15/2023.................................... 546,000 524,329
6.50%, 2/15/2024..................................... 48,916 48,579
-----------
9,831,561
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- (3.5%):
7.50%, 6/20/2029..................................... 1,809,698 1,771,025
7.50%, 10/20/2029.................................... 992,801 971,585
-----------
2,742,610
-----------
47,659,443
-----------
TENNESSEE VALLEY AUTHORITY -- (3.4%):
6.00%, 3/15/2013..................................... 3,000,000 2,673,270
-----------
TOTAL GOVERNMENT AND AGENCY BONDS -- (Cost $54,335,724)..... 50,332,713
-----------
SHORT TERM INVESTMENTS -- (2.7%):
REPURCHASE AGREEMENT:
Fifth Third Bank
5.77%, maturing 3/1/2000 (Collateralized by
$2,219,000 Freddie Mac, 6.50%, 2/1/2013, Market
Value -- $2,130,933)................................ 2,089,012 2,089,012
-----------
TOTAL SHORT TERM INVESTMENTS -- (Cost $2,089,012)........... 2,089,012
-----------
TOTAL INVESTMENTS -- (Cost $82,984,418) (a) -- 99.1%....... 77,514,852
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.9%............... 697,936
-----------
TOTAL NET ASSETS -- 100.0%.................................. $78,212,788
===========
</TABLE>
- ---------------
(a) Cost for federal income tax and financial reporting is substantially the
same.
Percentages indicated are based on net assets of $78,212,788.
OID - Original Issue Discount.
See notes to financial statements.
15
<PAGE> 16
MAGNA MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
SECURITY DESCRIPTION AMOUNT COST
-------------------- --------- ---------
<S> <C> <C>
CERTIFICATE OF DEPOSIT -- (2.7%):
YANKEE & EURODOLLAR -- (2.7%):
Deutsche Bank, 5.62%, 6/26/2000........................ 5,000,000 $ 4,999,258
------------
TOTAL CERTIFICATE OF DEPOSIT -- (Cost $4,999,258)........... 4,999,258
------------
COMMERCIAL PAPER -- (11.1%):
ELECTRIC UTILITY -- (0.8%):
Nebraska Public Power, 5.95%, 4/13/2000................ 1,500,000 1,500,000
------------
HOUSING -- (2.0%):
NEW YORK -- (2.0%):
New York State, Dorm Authority, 5.92%, 5/8/2000...... 3,745,000 3,745,000
------------
PETROLEUM REFINING -- (7.2%):
Deer Park, 5.92%, 3/01/2000............................ 5,000,000 5,000,000
Shell Oil 5.78%, 3/01/2000............................. 4,545,000 4,545,000
Shell Oil 5.83%, 03/9/2000............................. 4,100,000 4,100,000
------------
13,645,000
------------
TRANSPORTATION & SHIPPING -- (1.1%):
Matson Navigation, 03/06/2000.......................... 2,000,000 1,998,389
------------
TOTAL COMMERCIAL PAPER -- (Cost $20,888,389)................ 20,888,389
------------
CORPORATE BONDS -- (7.4%):
FINANCE & BANKING -- (7.4%):
Bayerische Landesbank, 6.125%, 3/30/2000............... 5,380,000 5,381,784
General Motors Acceptance Corporation
5.85%, 4/6/2000...................................... 5,000,000 5,000,779
6.375%, 9/19/2000.................................... 500,000 499,562
Morgan Stanley Dean Witter
6.25%, 3/15/2000..................................... 1,000,000 1,000,020
5.89%, 3/20/2000..................................... 1,000,000 1,000,023
5.875%, 4/24/2000.................................... 1,000,000 999,798
------------
TOTAL CORPORATE BONDS -- (Cost $13,881,966)................. 13,881,966
------------
</TABLE>
continued
16
<PAGE> 17
MAGNA MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
SECURITY DESCRIPTION AMOUNT COST
-------------------- --------- ---------
<S> <C> <C>
GOVERNMENT AND AGENCY BONDS -- (69.1%):
FANNIE MAE -- (28.9%):
5.10%, 3/16/2000....................................... 4,000,000 $ 3,998,881
5.53%, 3/23/2000....................................... 2,000,000 1,999,666
4.98%, 3/24/2000....................................... 1,860,000 1,859,043
9.05%, 4/10/2000....................................... 2,000,000 2,006,781
4.98%, 4/20/2000....................................... 4,000,000 3,994,747
5.00%, 5/5/2000........................................ 5,000,000 4,993,572
6.41%, 5/16/2000....................................... 1,700,000 1,702,369
6.41%, 5/22/2000....................................... 2,000,000 2,002,898
5.67%, 5/26/2000....................................... 750,000 749,609
6.20%, 6/6/2000........................................ 1,000,000 1,001,180
5.65%, 6/12/2000....................................... 9,055,000 9,054,774
6.25%, 6/16/2000....................................... 600,000 600,206
5.62%, 6/22/2000....................................... 500,000 499,420
5.90%, 7/6/2000........................................ 750,000 749,632
6.625%, 7/12/2000...................................... 1,000,000 1,001,518
5.67%, 7/21/2000....................................... 1,000,000 999,075
5.55%, 8/10/2000....................................... 3,280,000 3,271,896
6.11%, 9/20/2000....................................... 1,000,000 998,537
5.10%, 9/25/2000....................................... 2,145,000 2,131,819
5.97%, 9/25/2000....................................... 1,000,000 998,482
*5.93%, 9/29/2000...................................... 5,000,000 4,999,130
4.85%, 11/20/2000...................................... 1,100,000 1,088,845
5.10%, 11/29/2000...................................... 1,000,000 991,509
5.82%, 12/5/2000....................................... 1,000,000 996,572
4.87%, 12/15/2000...................................... 1,000,000 989,152
8.25%, 12/18/2000...................................... 800,000 812,094
------------
54,491,407
------------
FEDERAL FARM CREDIT BANK -- (5.7%):
5.60%, 3/1/2000........................................ 5,000,000 5,000,000
7.17%, 4/3/2000........................................ 1,700,000 1,702,157
5.68%, 5/1/2000........................................ 1,000,000 999,481
5.92%, 8/1/2000........................................ 1,000,000 998,666
5.66%, 8/11/2000....................................... 2,000,000 1,995,714
------------
10,696,018
------------
</TABLE>
continued
17
<PAGE> 18
MAGNA MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
SECURITY DESCRIPTION AMOUNT COST
-------------------- --------- ---------
<S> <C> <C>
GOVERNMENT AND AGENCY BONDS -- (CONTINUED):
FEDERAL HOME LOAN BANK -- (26.2%):
4.93%, 3/1/2000........................................ 1,110,000 $ 1,110,000
*6.38%, 3/1/2000....................................... 5,000,000 5,000,000
5.545%, 3/2/2000....................................... 500,000 499,996
5.16%, 3/8/2000........................................ 5,000,000 4,999,350
5.00%, 3/9/2000........................................ 500,000 499,888
5.565%, 3/17/2000...................................... 1,000,000 999,957
6.32%, 3/17/2000....................................... 2,000,000 1,999,465
5.02%, 3/22/2000....................................... 3,000,000 2,998,590
5.07%, 4/7/2000........................................ 1,000,000 999,168
5.50%, 4/14/2000....................................... 2,540,000 2,538,762
4.97%, 4/20/2000....................................... 5,000,000 4,993,857
5.01%, 4/28/2000....................................... 1,265,000 1,263,384
5.625%, 6/02/2000...................................... 2,035,000 2,035,000
5.56%, 7/14/2000....................................... 1,450,000 1,447,271
5.71%, 8/9/2000........................................ 500,000 499,350
5.62%, 8/10/2000....................................... 2,550,000 2,550,000
*5.74%, 9/12/2000...................................... 5,000,000 5,001,599
6.29%, 9/20/2000....................................... 600,000 601,195
4.565%, 10/16/2000..................................... 1,500,000 1,485,546
6.05%, 11/3/2000....................................... 1,050,000 1,048,096
6.20%, 11/3/2000....................................... 1,000,000 997,985
5.00%, 12/1/2000....................................... 800,000 792,186
5.84%, 12/1/2000....................................... 3,000,000 2,988,105
5.97%, 12/1/2000....................................... 1,000,000 997,878
5.75%, 12/15/2000...................................... 1,000,000 994,879
------------
49,341,507
------------
FREDDIE MAC -- (2.0%):
5.875%, 3/22/2000...................................... 1,000,000 1,000,158
6.395%, 5/16/2000...................................... 730,000 730,833
5.76%, 6/9/2000........................................ 2,000,000 1,998,449
5.905%, 6/13/2000...................................... 100,000 100,005
------------
3,829,445
------------
SOVEREIGN AGENCY -- (0.5%):
Aid-Israel, 6.05%, 8/15/2000........................... 1,000,000 999,596
------------
</TABLE>
continued
18
<PAGE> 19
MAGNA MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
SECURITY DESCRIPTION AMOUNT COST
-------------------- --------- ---------
<S> <C> <C>
GOVERNMENT AND AGENCY BONDS -- (CONTINUED):
STUDENT LOAN MARKETING ASSOCIATION -- (5.3%):
7.50%, 03/08/2000...................................... 1,000,000 $ 1,000,374
*6.30%, 6/15/2000...................................... 5,000,000 5,000,000
6.045%, 11/3/2000...................................... 1,000,000 997,815
*6.53%, 11/13/2000..................................... 3,000,000 2,999,377
------------
9,997,566
------------
TENNESSEE VALLEY AUTHORITY -- (0.5%):
6.00%, 11/1/2000....................................... 890,000 887,699
------------
TOTAL GOVERNMENT AND AGENCY BONDS -- (Cost $130,243,238).... 130,243,238
------------
MUNICIPAL BONDS -- (10.1%):
CALIFORNIA -- (2.7%):
Inland Empire Solid Waste Financing Authority, Landfill
Improvement Project, Ser. A, Rev., *5.86%,
8/1/2016............................................. 5,000,000 5,000,000
------------
ILLINOIS -- (4.7%):
Illinois Student Assistance
*5.86%, 3/1/2016....................................... 3,100,000 3,100,000
*5.84%, 12/1/2022...................................... 5,700,000 5,700,000
------------
8,800,000
------------
INDIANA -- (0.5%):
Indiana State Finance Authority, *5.86%, 1/1/2009...... 1,000,000 1,000,000
------------
TEXAS -- (2.2%):
Texas State, GO, *5.84%, 12/1/2029..................... 1,530,000 1,530,000
Texas State Veterans Administration. GO, TX, *5.85%,
12/1/2009............................................ 2,700,000 2,700,000
------------
4,230,000
------------
TOTAL MUNICIPAL BONDS -- (Cost $19,030,000)................. 19,030,000
------------
WEEKLY DEMAND NOTE -- (2.6%):
MEDICAL -- (1.0%):
Edward Obligation Group, *5.86%, 2/15/2027............. 2,000,000 2,000,000
FINANCIAL SERVICES (1.6%):
Everett Clinic, *4.97%, 12/1/2018...................... 3,000,000 3,000,000
------------
TOTAL WEEKLY DEMAND NOTE -- (Cost $5,000,000)............... 5,000,000
------------
</TABLE>
continued
19
<PAGE> 20
MAGNA MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
SECURITY DESCRIPTION AMOUNT COST
-------------------- --------- ---------
<S> <C> <C>
SHORT TERM INVESTMENTS -- (0.2%):
REPURCHASE AGREEMENT -- (0.2%):
Fifth Third Bank
5.77%, maturing 3/1/2000 (Collateralized by $353,000
Freddie Mac, 6.50%, 2/1/2013, Market
Value -- $338,990)................................... 331,668 $ 331,668
------------
TOTAL SHORT TERM INVESTMENTS -- (Cost $331,668)............. 331,668
------------
TOTAL INVESTMENTS -- (Cost $194,374,519)(a) -- 103.2%....... 194,374,519
LIABILITIES IN EXCESS OF OTHER ASSETS -- (3.2)%............. (6,075,899)
------------
TOTAL NET ASSETS -- 100.0%.................................. $188,298,620
============
</TABLE>
- ---------------
Percentages indicated are based on net assets of $188,298,620.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Variable Rate Investments. The rate presented is the rate in effect at
February 29, 2000.
GO -- General Obligation
See notes to financial statements.
20
<PAGE> 21
MAGNA FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
(UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INTERMEDIATE MONEY
INCOME GOVERNMENT MARKET
FUND BOND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$94,678,009, $80,895,406 and $194,042,851;
respectively)................................ $152,972,458 $75,425,840 $194,042,851
Repurchase agreements, (cost $7,260,992,
$2,089,012 and $331,668; respectively)....... 7,260,992 2,089,012 331,668
------------ ----------- ------------
TOTAL INVESTMENTS............................ 160,233,450 77,514,852 194,374,519
------------ ----------- ------------
Dividends and interest receivable.............. 329,247 1,161,863 2,934,212
Prepaid expenses and other assets.............. 7,801 4,388 12,708
------------ ----------- ------------
TOTAL ASSETS................................. 160,570,498 78,681,103 197,321,439
------------ ----------- ------------
LIABILITIES:
Distributions payable.......................... -- 399,165 775,018
Payable for investment securities purchased.... 2,076,812 -- 8,188,438
Accrued expenses:
Advisory fees................................ 63,273 24,834 24,590
Administration fees.......................... 5,157 2,584 5,249
Other........................................ 82,228 41,732 29,524
------------ ----------- ------------
TOTAL LIABILITIES............................ 2,227,470 468,315 9,022,819
------------ ----------- ------------
NET ASSETS..................................... $158,343,028 $78,212,788 $188,298,620
============ =========== ============
COMPOSITION OF NET ASSETS:
Paid-in capital................................ $ 94,610,078 $83,787,894 $188,299,377
Accumulated undistributed (distributions in
excess of) net investment income............. 234,387 (1,371) --
Accumulated net realized gains (losses) on
investment transactions...................... 5,204,114 (104,169) (757)
Net unrealized appreciation (depreciation) from
investments.................................. 58,294,449 (5,469,566) --
------------ ----------- ------------
NET ASSETS..................................... $158,343,028 $78,212,788 $188,298,620
============ =========== ============
Shares of beneficial interest outstanding, no
par value.................................... 4,990,272 6,668,775 188,299,377
============ =========== ============
Net asset value and redemption price per
share........................................ $ 31.73 $ 11.73 $ 1.00
============ =========== ============
Maximum Sales Charge........................... 4.00% 4.00% --
============ =========== ============
Maximum offering price (100%/(100%-Maximum
Sales Charge) of net asset value adjusted to
the
nearest cent) per share...................... $ 33.05 $ 12.22 $ --
============ =========== ============
</TABLE>
See notes to financial statements.
21
<PAGE> 22
MAGNA FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INTERMEDIATE MONEY
INCOME GOVERNMENT MARKET
FUND BOND FUND FUND
---------- ------------ ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................................... $ 306,936 $2,810,167 $4,795,404
Dividend income.................................... 1,119,299 -- --
---------- ---------- ----------
TOTAL INCOME..................................... 1,426,235 2,810,167 4,795,404
---------- ---------- ----------
EXPENSES:
Advisory fees (Note 3)............................. 578,633 200,194 342,409
Administration fees (Note 3)....................... 154,303 80,078 171,204
12b-1 fees (Note 3)................................ 192,878 100,098 214,005
Fund accounting fees (Note 3)...................... 24,716 46,282 26,291
Transfer agent fees (Note 3)....................... 20,394 4,640 13,994
Trustees' fees and expenses........................ 10,010 2,798 8,226
Other.............................................. 66,992 28,158 89,888
---------- ---------- ----------
TOTAL EXPENSES................................... 1,047,926 462,248 866,017
Less: Expenses voluntarily reduced/waived........ (385,756) (140,137) (436,568)
---------- ---------- ----------
Net expenses..................................... 662,170 322,111 429,449
---------- ---------- ----------
NET INVESTMENT INCOME.............................. 764,065 2,488,056 4,365,955
---------- ---------- ----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENT TRANSACTIONS:
Realized gains (losses) on investment
transactions..................................... 5,326,744 (8,074) 805
Net change in unrealized appreciation
(depreciation) on investments.................... 2,093,753 (2,105,042) --
---------- ---------- ----------
Net realized and unrealized gains (losses) from
investment transactions.......................... 7,420,497 (2,113,116) 805
---------- ---------- ----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS..... $8,184,562 $ 374,940 $4,366,760
========== ========== ==========
</TABLE>
See notes to financial statements.
22
<PAGE> 23
MAGNA FUNDS
GROWTH & INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
----------------- ---------------
<S> <C> <C>
CHANGE IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................................. $ 764,065 $ 1,356,565
Net realized gains on investment transactions.......... 5,326,744 610,272
Net change in unrealized appreciation from
investments.......................................... 2,093,753 30,829,853
------------ ------------
Change in net assets resulting from operations......... 8,184,562 32,796,690
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................. (844,041) (1,179,259)
Net realized gains..................................... (732,902) (2,809,929)
------------ ------------
Change in net assets from shareholder distributions.... (1,576,943) (3,989,188)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from sale of shares........................... 20,818,394 55,582,611
Shares issued in reinvestment of distributions......... 741,469 2,300,629
Payments for shares redeemed........................... (15,743,653) (14,902,534)
------------ ------------
Change in net assets from fund share transactions...... 5,816,210 42,980,706
------------ ------------
NET INCREASE IN NET ASSETS............................. 12,423,829 71,788,208
------------ ------------
NET ASSETS:
Beginning of period.................................... 145,919,199 74,130,991
------------ ------------
End of period.......................................... $158,343,028 $145,919,199
============ ============
Accumulated undistributed net investment income, end of
period............................................... $ 234,387 $ 314,363
------------ ------------
SHARE TRANSACTIONS:
Issued................................................. 661,210 2,082,954
Reinvested............................................. 22,955 82,321
Redeemed............................................... (498,705) (520,372)
------------ ------------
Change in shares....................................... 185,460 1,644,903
============ ============
</TABLE>
See notes to financial statements.
23
<PAGE> 24
MAGNA FUNDS
INTERMEDIATE GOVERNMENT BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
----------------- ---------------
<S> <C> <C>
CHANGE IN NET ASSETS:
FROM OPERATIONS:
Net investment income................................... $ 2,488,056 $ 4,407,797
Net realized gains (losses) on investment
transactions.......................................... (8,074) 62,312
Net change in unrealized depreciation on investments.... (2,105,042) (6,124,561)
----------- -----------
Change in net assets resulting from operations.......... 374,940 (1,654,452)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................... (2,488,056) (4,406,645)
In excess of net investment income...................... -- (1,152)
----------- -----------
Change in net assets from shareholder distributions..... (2,488,056) (4,407,797)
----------- -----------
FROM FUND SHARE TRANSACTIONS:
Proceeds from sale of shares............................ 9,729,164 22,721,191
Shares issued in reinvestment of distributions.......... 332,305 641,435
Payments for shares redeemed............................ (10,342,077) (9,308,084)
----------- -----------
Change in net assets from fund share transactions....... (280,608) 14,054,542
----------- -----------
NET INCREASE IN NET ASSETS.............................. (2,393,724) 7,992,293
----------- -----------
NET ASSETS:
Beginning of period..................................... 80,606,512 72,614,219
----------- -----------
End of period........................................... $78,212,788 $80,606,512
=========== ===========
Accumulated undistributed (distributions in excess of)
net investment income, end of period.................. $ (1,371) $ (1,371)
----------- -----------
SHARE TRANSACTIONS:
Issued.................................................. 816,142 1,790,846
Reinvested.............................................. 27,779 50,162
Redeemed................................................ (868,822) (734,208)
----------- -----------
Change in shares........................................ (24,901) 1,106,800
=========== ===========
</TABLE>
See notes to financial statements.
24
<PAGE> 25
MAGNA FUNDS
MONEY MARKET FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 29, 2000 JULY 7, 1999 TO
(UNAUDITED) AUGUST 31, 1999(A)
----------------- ------------------
<S> <C> <C>
CHANGE IN NET ASSETS:
FROM OPERATIONS:
Net investment income................................ $ 4,365,955 $ 1,046,840
Net realized gains (losses) on investment
transactions....................................... 805 (1,562)
------------ ------------
Change in net assets resulting from operations....... 4,366,760 1,045,278
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................ (4,365,955) (1,046,840)
------------ ------------
Change in net assets from shareholder
distributions...................................... (4,365,955) (1,046,840)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from sale of shares......................... 131,229,660 190,304,944
Shares issued in reinvestment of distributions....... 20,515 52
Payments for shares redeemed......................... (109,287,355) (23,968,439)
------------ ------------
Change in net assets from fund share transactions.... 21,962,820 166,336,557
------------ ------------
NET INCREASE IN NET ASSETS........................... 21,963,625 166,334,995
NET ASSETS:
Beginning of period.................................. 166,334,995 --
------------ ------------
End of period........................................ $188,298,620 $166,334,995
============ ============
Undistributed net investment income, end of period... $ -- $ --
------------ ------------
SHARE TRANSACTIONS:
Issued............................................... 131,229,660 190,304,944
Reinvested........................................... 20,515 52
Redeemed............................................. (109,287,355) (23,968,439)
------------ ------------
Change in Shares..................................... 21,962,820 166,336,557
============ ============
</TABLE>
- ---------------
(a) Period from commencement of operations.
See notes to financial statements.
25
<PAGE> 26
MAGNA FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION AND FUND DESCRIPTION
Magna Funds (the "Trust") is an open-end, diversified management investment
company registered under the Investment Company Act of 1940 (the "Act"), as
amended. The Trust was organized as a Massachusetts business trust on April 28,
1994, and is authorized to issue an unlimited number of shares of beneficial
interest in multiple series. Two series commenced investment operations on
September 1, 1994, the Magna Growth & Income Fund and the Magna Intermediate
Government Bond Fund (the "Funds"). The Magna Money Market commenced investment
operations on July 7, 1999 and currently has only one class issued and
outstanding.
The investment objective of the Magna Growth & Income Fund is to seek long-term
growth of capital, current income and growth of income. The investment objective
of the Magna Intermediate Government Bond Fund and the Magna Money Market Fund
is to achieve current income consistent with preservation of capital.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust.
Investment Valuation: The variable net asset funds are valued as followed:
Equity securities listed on an established securities exchange or on the NASDAQ
National Market System are valued at the closing sale price on the exchange
where primarily traded or, if there is no reported sale during the day, and in
the case of over-the-counter securities not so listed, at the last bid price.
Long-term debt securities are valued by a pricing service, which determines
valuations of normal institutional-size trading units of long-term debt
securities. Short-term debt securities having a maturity of 60 days or less from
the valuation date are valued at amortized cost which approximates market value.
The Money Market Fund's securities are valued at amortized cost, which
approximates market value. The amortized cost method involves valuing a security
at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of the difference between the principal amount due at
maturity and cost.
Investment Transactions: All securities transactions are recorded on a trade
date basis. Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Realized gains and losses on sales of
securities are determined on the basis of identified cost.
Repurchase Agreements: A repurchase agreement customarily obligates the seller
at the time it sells securities to the Funds to repurchase the securities at a
mutually agreed upon time and price which, in the case of the Funds'
transactions, is usually within seven days. The total amount received by the
Funds on repurchase agreements is calculated to exceed the price paid by the
Funds, reflecting an agreed upon market rate of interest for the period of time
to the settlement date, and will not necessarily be related to the interest rate
on the underlying securities. The underlying securities are ordinarily United
States government securities. Repurchase agreements will be fully collateralized
at all times. However, to the extent that the proceeds from any sale upon
default in the obligation to repurchase is less than the repurchase price, the
Funds would suffer a loss. Also, the Funds might incur costs and encounter
delays in liquidating collateral.
continued
26
<PAGE> 27
MAGNA FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
Dividends and Distributions to Shareholders: The Magna Intermediate Government
Bond Fund and the Magna Money Market Fund declare dividends from net investment
income daily and make payments monthly. The Magna Growth & Income Fund declares
and pays dividends from net investment income quarterly. Each Fund also
distributes all of its net capital gains, if any, on an annual basis, normally
in December. Distributions are recorded on the ex-dividend date. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations, which may differ from generally accepted accounting
principles. The differences are primarily due to differing treatments for
mortgage-backed securities, expiring capital loss carryforwards, and deferrals
of certain losses. Permanent book and tax basis differences have been
reclassified among the components of net assets.
Federal Income Taxes: Each Fund of the Trust is treated as a separate entity for
federal tax purposes. Each Fund intends to qualify each year as a regulated
investment company under Subchapter M of the Internal Revenue Code. By so
qualifying, the Funds will not be subject to federal income tax to the extent
that they distribute all of their taxable income, including realized capital
gains, for the fiscal year. In addition, by distributing substantially all of
their net investment income and capital gains during the calendar year, the
Funds will not be subject to a federal excise tax.
Expenses: Expenses that are directly related to one of the Funds are charged
directly to that Fund. Expenses relating to the Funds collectively are prorated
to the Funds on the basis of each Fund's relative net assets.
Estimates: The financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. Actual
results could differ from those estimates.
3. RELATED PARTY TRANSACTIONS
Each Fund has entered into a separate Investment Advisory Agreement with Union
Planters Bank, N.A. ("UPC"). Under these agreements, each Fund pays a fee,
calculated daily and paid monthly, based on the respective average daily net
assets of such Fund. This fee is 0.75% for the Magna Growth & Income Fund, 0.50%
for the Magna Intermediate Government Bond Fund, and 0.40% for the Magna Money
Market Fund. UPC has voluntarily agreed to reduce its fees with respect to the
Magna Growth & Income Fund to 0.50% and with respect to the Magna Intermediate
Government Bond Fund to 0.40% of daily net assets through February 29, 2000.
Also, UPC has voluntarily agreed to reduce its fee for the Magna Money Market
Fund to 0.17% of daily net assets through August 31, 2000. This voluntary
reduction has been in effect since September 1, 1995 for the Magna Growth &
Income Fund and the Magna Intermediate Government Bond Fund; the Magna Money
Market Fund has been in effect since June 1, 1999. For the period ended February
29, 2000, UPC voluntarily waived investment advisory fees of $192,878, $40,039,
and $196,884 for the Magna Growth & Income Fund, Magna Intermediate Government
Bond Fund, and the Magna Money Market Fund, respectively.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"), an
Ohio limited partnership, is a subsidiary of The BISYS Group, Inc. BISYS serves
the Trust as distributor, administrator, transfer agent and
continued
27
<PAGE> 28
MAGNA FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(UNAUDITED)
fund accountant. Certain officers of the Trust are affiliated with BISYS and
such officers are not paid any fees directly by the Funds for serving as
officers of the Trust. As administrator, BISYS voluntarily waived administrative
fees of $25,679 for the Magna Money Market Fund for the six months ended
February 29, 2000.
Each Fund has adopted a Service Plan (the "Plan") pursuant to Rule 12b-1 under
the Investment Company Act of 1940, as amended. The purpose of each plan is to
compensate the Funds' Distributor for expenses borne in connection with the
provision of personal services provided to investors and/or maintenance of
shareholder accounts, at an annual rate not to exceed 0.25% of each Fund's
average daily net assets. For the period ended February 29, 2000, BISYS (the
"Distributor") voluntarily waived the entire 0.25% for each Fund, amounting to
$192,878, $100,098, and $214,005 of service fees for the Magna Growth & Income
Fund, the Magna Intermediate Government Bond Fund, and the Magna Money Market
Fund, respectively.
BISYS is entitled to receive commissions on sales of shares of the Funds for the
period ended February 29, 2000, BISYS received $2,129 of commissions on sales of
shares of the Funds, of which $1,862 was allowed to affiliated broker/dealers of
the Funds.
Each of the Trust's Trustees who are not affiliated with UPC or BISYS receives
an annual fee of $5,000 plus $500 for each meeting attended.
4. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities for each Fund for the period ended February 29, 2000 were
as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Magna Growth & Income Fund.................................. $16,584,450 $11,678,232
Magna Intermediate Government Bond Fund..................... $ 4,415,978 $ 4,170,557
</TABLE>
The identified cost for federal income tax purposes of investments owned by each
Fund and their respective gross unrealized appreciation and depreciation at
February 29, 2000 were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ ------------ -------------- --------------
<S> <C> <C> <C> <C>
Magna Growth & Income Fund.... $101,939,001 $63,851,480 $(5,557,031) $58,294,449
Magna Intermediate Government
Bond Fund................... $ 82,984,418 $ 83,143 $(5,552,709) $(5,469,566)
Magna Money Market Fund....... $194,374,519 $ -- $ -- $ --
</TABLE>
continued
28
<PAGE> 29
MAGNA FUNDS
MAGNA GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX SEPTEMBER 1,
MONTHS ENDED YEAR YEAR YEAR YEAR 1994*
FEBRUARY 29, ENDED ENDED ENDED ENDED THROUGH
2000 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
(UNAUDITED) 1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF
PERIOD......................... $ 30.37 $ 23.46 $ 22.18 $ 16.42 $ 14.05 $ 12.50
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income............ 0.15 0.30 0.23 0.26 0.24 0.25
Net realized and unrealized gains
from investment transactions... 1.53 7.53 1.72 6.12 2.39 1.52
-------- -------- -------- -------- -------- --------
Total income from investment
operations..................... 1.68 7.83 1.95 6.38 2.63 1.77
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Net investment income............ (0.17) (0.27) (0.25) (0.25) (0.23) (0.22)
Net realized gains from
investment transactions........ (0.15) (0.65) (0.42) (0.37) (0.03) --
-------- -------- -------- -------- -------- --------
Total dividends and
distributions.................. (0.32) (0.92) (0.67) (0.62) (0.26) (0.22)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE -- END OF
PERIOD......................... $ 31.73 $ 30.37 $ 23.46 $ 22.18 $ 16.42 $ 14.05
======== ======== ======== ======== ======== ========
Total return (1)................. 5.53% 33.73% 8.84% 39.59% 18.77% 14.33%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period
($000's)....................... $158,343 $145,919 $ 74,131 $ 70,276 $ 39,995 $ 30,284
Ratio of expenses to average net
assets......................... 0.86%(2) 0.87% 0.99% 1.06% 1.27% 1.25%
Ratio of net investment income to
average net assets............. 0.99%(2) 1.05% 0.96% 1.36% 1.56% 1.98%
Ratio of expenses to average net
assets without fee waivers**... 1.36%(2) 1.37% 1.49% 1.56% 1.77% 1.88%
Ratio of net investment income to
average net assets without fee
waivers**...................... 0.49%(2) 0.55% 0.46% 0.86% 1.06% 1.35%
Portfolio turnover rate.......... 8% 9% 26% 17% 31% 41%
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of operations.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(1) Total return excludes sales charges. Had the advisor, distributor, and
administrator not reduced or waived certain expenses, total returns would
have been lower. Total return for periods of less than one year are not
annualized.
(2) Annualized.
29
<PAGE> 30
MAGNA FUNDS
MAGNA INTERMEDIATE GOVERNMENT BOND FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX SEPTEMBER 1,
MONTHS ENDED YEAR YEAR YEAR YEAR 1994*
FEBRUARY 29, ENDED ENDED ENDED ENDED THROUGH
2000 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
(UNAUDITED) 1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF
PERIOD....................... $ 12.04 $ 13.00 $ 12.61 $ 12.43 $ 12.75 $ 12.50
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income.......... 0.37 0.72 0.76 0.79 0.76 0.74
Net realized and unrealized
gain (loss) on investments... (0.31) (0.96) 0.39 0.19 (0.32) 0.25
------- ------- ------- ------- ------- -------
Total income from investment
operations................... 0.06 (0.24) 1.15 0.98 0.44 0.99
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net investment income.......... (0.37) (0.72) (0.76) (0.79) (0.76) (0.74)
In excess of net investment
income....................... -- -- -- (0.01) -- --
------- ------- ------- ------- ------- -------
Total dividends and
distributions................ (0.37) (0.72) (0.76) (0.80) (0.76) (0.74)
------- ------- ------- ------- ------- -------
NET ASSET VALUE -- END OF
PERIOD....................... $ 11.73 $ 12.04 $ 13.00 $ 12.61 $ 12.43 $ 12.75
======= ======= ======= ======= ======= =======
Total return (1)............... 0.48% (1.97)% 9.33% 7.96% 3.48% 8.30%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period
($000's)..................... $78,213 $80,607 $72,614 $64,459 $56,764 $52,085
Ratio of expenses to average
net assets................... 0.80% (2) 0.82% 0.90% 0.96% 1.05% 1.10%
Ratio of net investment income
to average net assets........ 6.21% (2) 5.69% 5.92% 6.15% 5.97% 6.00%
Ratio of expenses to average
net assets without fee
waivers**.................... 1.15% (2) 1.17% 1.25% 1.31% 1.40% 1.43%
Ratio of net investment income
to average net assets without
fee waivers**................ 5.86% (2) 5.34% 5.57% 5.80% 5.62% 5.66%
Portfolio turnover rate........ 5% 16% 32% 19% 20% 34%
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of operations.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(1) Total return excludes sales charges. Had the advisor, distributor, and
administrator not reduced or waived certain expenses, total returns would
have been lower. Total return for periods of less than one year are not
annualized.
(2) Annualized.
30
<PAGE> 31
MAGNA FUNDS
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout the
period indicated:
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX JULY 7, 1999*
MONTHS ENDED THROUGH
FEBRUARY 29, 2000 AUGUST 31,
(UNAUDITED) 1999
----------------- -------------
<S> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD...................... $ 1.000 $ 1.000
-------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................................... 0.025 0.007
-------- --------
Total income from investment operations..................... 0.025 0.007
-------- --------
LESS DISTRIBUTIONS:
Net investment income....................................... (0.025) (0.007)
-------- --------
Total dividends and distributions........................... (0.025) (0.007)
-------- --------
NET ASSET VALUE -- END OF PERIOD............................ $ 1.000 $ 1.000
======== ========
Total return (1)............................................ 2.56% (3) 0.67% (3)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period ($000's)....................... $188,299 $166,335
Ratio of expenses to average net assets..................... 0.50% (2) 0.51% (2)
Ratio of net investment income to average net assets........ 5.10% (2) 4.35% (2)
Ratio of expenses to average net assets without fee
waivers**................................................. 1.01% (2) 1.02% (2)
Ratio of net investment income to average net assets without
fee waivers**............................................. 4.59% (2) 3.84% (2)
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of operations.
** During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(1) Had the advisor, distributor, and administrator not reduced or waived
certain expenses, total returns would have been lower.
(2) Annualized.
(3) Not annualized.
31
<PAGE> 32
- ------------------------------------------------------
- ------------------------------------------------------
INVESTMENT ADVISOR
Union Planters, N.A.
One South Church Street
Suite 500
Belleville, Illinois 62220
ADMINISTRATOR & DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
TRANSFER AND
DIVIDEND PAYING AGENT
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
CUSTODIAN
Fifth Third Bank
Fifth Third Center
Cincinnati, OH 45263
LEGAL COUNSEL
Ropes & Gray
One International Place
Boston, Massachusetts 02110
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Broad Street
Columbus, OH 43215
04/00
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Letter to Shareholders.................... 1
Portfolio Manager Report.................. 2
Schedule of Portfolio Investments......... 5
Statements of Assets and Liabilities...... 21
Statements of Operations.................. 22
Statements of Changes in Net Assets....... 23
Notes to Financial Statements............. 26
Financial Highlights...................... 29
</TABLE>
- ------------------------------------------------------
- ------------------------------------------------------
- ------------------------------------------------------
- ------------------------------------------------------
MAGNA FUNDS
A FAMILY OF FUNDS
SEMI-ANNUAL REPORT
FEBRUARY 29, 2000
(UNAUDITED)
3435 STELZER ROAD
COLUMBUS, OH 43219
(800) 219-4182
- ------------------------------------------------------
- ------------------------------------------------------
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE PROVIDED FOR THE
GENERAL INFORMATION OF THE SHAREHOLDERS OF THE MAGNA FUNDS. THIS MATERIAL MUST
BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. READ THE PROSPECTUS CAREFULLY BEFORE
YOU INVEST OR SEND MONEY. INVESTMENTS IN MUTUAL FUNDS INVOLVE RISK, INCLUDING
THE POSSIBLE LOSS OF PRINCIPAL. MUTUAL FUNDS ARE NOT FDIC INSURED OR BANK
GUARANTEED.
- ------------------------------------------------------
- ------------------------------------------------------
