GREAT PLAINS
FUNDS
COMBINED SEMI-ANNUAL
REPORT AND SUPPLEMENT TO
PROSPECTUS DATED
SEPTEMBER 1, 1997
Great Plains Equity Fund
Great Plains International Equity Fund
Great Plains Premier Fund
Great Plains Intermediate Bond Fund
Great Plains Tax-Free Bond Fund
February 18, 1998
Advised by
First Commerce Investors, Inc.
INVESTMENT ADVISER MESSAGE
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the first Report to Shareholders for the Great Plains
Funds. This report covers the five-month period from the funds' initial date of
operation through February 28, 1998. It gives you a complete picture of your
fund, beginning with an overview by the fund's portfolio manager or Team Leader
followed by a complete listing of fund holdings and the financial statements.
Fund-by-fund performance highlights for each fund are as follows. I urge you to
read the portfolio manager commentary to familiarize yourself with your fund and
how it is managed.
GREAT PLAINS EQUITY FUND
This fund offers an all around approach to stock investing. It pursues total
return (current income and capital appreciation) over the long term by investing
in large- and medium-capitalization U.S. and foreign stocks.
Over the reporting period, the fund delivered a total return of 9.48% (6.19%
adjusted for the sales charge).* The major contributor to the fund's total
return was a $0.93 per share increase in net asset value, as the fund's net
asset value rose from $10.00 on the first day of the reporting period to $10.93
on the last day. Shareholders also received dividend income totaling $0.02 per
share. Fund assets totaled $205 million at the end of the reporting period.
GREAT PLAINS PREMIER FUND
Designed for the more aggressive stock investor, this fund pursues total return
(current income and capital appreciation) by investing in small- capitalization
U.S. and foreign common stocks.+ Over the reporting period, the fund produced a
total return of 3.61% (0.50% adjusted for the sales charge).* A $0.36 per share
increase in net asset value accounted for the total return. At the end of the
reporting period, fund assets reached $26 million.
GREAT PLAINS INTERMEDIATE BOND FUND
This bond fund offers income and a less aggressive approach to total return than
stocks. It invests in intermediate-term bonds issued by U.S. and international
corporations and governments. At the end of the reporting period, the fund's
$137 million in assets were invested primarily across corporate bonds (27.9%),
U.S. Treasury securities (27.8%) mortgage-backed securities (22.0%) and
government agency securities (18.6%). Over the reporting period, this portfolio
produced a total return of 4.19% (1.05% adjusted for the sales charge) through a
$0.17 per share increase in net asset value and $0.25 per share in dividend
income.*
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
+ Small-cap stocks have historically experienced greater volatility than
average. Foreign investing involves special risks including currency risk,
increased volatility of foreign securities, and differences in auditing and
other financial standards.
- -------------------------------------------------------------------------------
GREAT PLAINS TAX-FREE BOND FUND
Designed for the tax-sensitive income investor, this fund pursues current income
exempt from federal regular income tax and, secondarily, exempt from Nebraska
regular income tax.* It invests primarily in intermediate-to long-term,
investment-grade bonds issued by municipalities in Nebraska and other states.
Over its initial period of operation, the fund achieved a total return of 2.68%
(-0.41% adjusted for the sales charge) through dividend income totaling $0.11
per share and a net asset value increase of $0.09 per share.** Assets reached
$66 million at the end of the reporting period.
Thank you for joining other investors across Nebraska who are using the quality,
local management and diversification of the Great Plains Funds to reach their
financial goals. We'll continue to update you on the progress of your
investments.
Sincerely,
James Stuart, III H. Cameron Hinds
Chairman & Chief Executive Officer President & Chief Investment Officer
First Commerce Investors First Commerce Investors
Investment Adviser to Great Plains Funds Investment Adviser to Great Plains
Funds
* Income may be subject to the federal alternative minimum tax.
** Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
INVESTMENT REVIEW
- -------------------------------------------------------------------------------
GREAT PLAINS EQUITY FUND
The past three years have produced exceptional returns in the stock market. For
only the third time in history, the Dow Jones Industrial Average was up over 20%
on a total return basis, for three years in a row. The other two times occurred
in 1926-1928, (the market crashed in 1929), and 1932-1934 (coming out of the
bottom of the great depression). While using traditional valuation measurements,
many stocks appear to be fairly to overvalued. However, the basic fundamental
background remains extremely positive. Inflation is falling, interest rates are
reasonably low, corporate earnings continue to grow, and cash flows into stock
mutual funds continue strong.
Performance for the Great Plains Equity Fund continues to be good. For the year
ended February 28, 1998, the fund had a total return, based on net asset value
of 29.93%* relative to 28.31% for the Lipper Growth & Income Average.** For the
five month period ended February 28, 1998, the fund had a total return of 9.48%
(6.19% adjusted for the sales charge).*** Despite strong returns over the past
three years, the fund was up 8.41% year to date through the end of February. The
fund is currently 96.1% invested in stocks. As always, we continue to closely
monitor the operating fundamentals of our stock holdings, attempting to own high
quality business franchises with excellent long-term growth prospects. We are
also continuously assessing the valuation prospects for our companies, looking
for opportunities to improve the long-term performance for our shareholders.
GREAT PLAINS PREMIER FUND
Economic fundamentals have continued to drive exceptional performance for most
stock funds. Inflation is running at close to 2%, interest rates have again
fallen, and cash continues to flow into stock mutual funds. Larger, "blue chip"
stocks have performed especially well over the past three years. We believe this
has created an environment leaving many smaller company stocks with relatively
attractive valuations. Many of these smaller companies have better growth
prospects than larger companies in the same industry.
* The Equity Fund's total return for the year ended February 28, 1998, based
on offering price, was 26.03%. The Equity Fund's total returns for the five
and ten year periods ended February 28, 1998, based on net asset value and
offering price, were 19.06% and 18.34% and 14.79% and 14.44%, respectively.
The quoted performance data includes the performance of a common trust fund
advised by First Commerce Investors, Inc., for the period before the date on
which the fund commenced operations (9/26/97), as adjusted to reflect the
fund's anticipated expenses as set forth in the "Expenses of the Fund"
section of the fund's initial prospectus. The common trust fund was not
registered under the Investment Company Act of 1940 (the "1940 Act"), and
therefore was not subject to certain investment restrictions that are
imposed by the 1940 Act. If the common trust fund had been registered under
the 1940 Act, the performance may have been adversely affected.
** Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the respective categories indicated. These figures do not reflect sales
charges.
*** Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
Performance for the Great Plains Premier Fund continues to be good. For the year
ended February 28, 1998, the fund had a total return, based on net asset value
of 28.60%* relative to 26.45% for the Lipper Small Cap Average.** For the five
month period ended February 28, 1998, the fund had a total return of 3.61%
(0.50% adjusted for the sales charge).*** The fund is currently 88.2% invested
in stocks. We have been successful in continuing to identify high quality
growing companies that trade within our valuation parameters. We continue to
define a "small cap" holding as those firms with a market capitalization of less
than $1 billion. The weighted average market cap for the holdings in the Great
Plains Premier Fund was approximately $850 million as of February 28, 1998.
GREAT PLAINS INTERMEDIATE BOND FUND
The fixed income markets over the last couple of months have begun to stabilize
and have not changed much in response to recent economic reports. The Federal
Reserve Board, likewise, has not changed its credit reins as the U.S. economy
continues to expand, but not at an alarming pace, and inflation remains low.
Therefore, most interest rates are about the same as they were in early December
after rallying from their 1997 highs of last April. Nevertheless the bond
markets are continually analyzing the economic data to determine if a new
economic trend has started, which would cause interest rates to adjust
significantly. Fixed income investors are beginning to gravitate again towards
two different investment camps: those expecting interest rates to rise and those
expecting interest rates to decline.
* The Premier Fund's total return for the year ended February 28, 1998, based
on offering price, was 24.74%. The Premier Fund's total returns for the five
year period ended February 28, 1998, and for the period from October 1988
(date of inception) to February 28, 1998, based on net asset value and
offering price, were 17.80% and 17.08% and 12.66% and 12.30%, respectively.
The quoted performance data includes the performance of a common trust fund
advised by First Commerce Investors, Inc., for the period before the date on
which the fund commenced operations (9/26/97), as adjusted to reflect the
fund's anticipated expenses as set forth in the "Expenses of the Fund"
section of the fund's initial prospectus. The common trust fund was not
registered under the Investment Company Act of 1940 (the "1940 Act"), and
therefore was not subject to certain investment restrictions that are
imposed by the 1940 Act. If the common trust fund had been registered under
the 1940 Act, the performance may have been adversely affected.
** Lipper figures represent the average of the total returns reported by all of
the mutual funds designated by Lipper Analytical Services, Inc. as falling
into the respective categories indicated. These figures do not reflect sales
charges.
*** Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
The Great Plains Intermediate Bond Fund is still structured to benefit from a
modest reduction from the current interest rate levels, but recent transactions
have been designed to move the portfolio from a slightly aggressive to a
slightly more conservative posture with respect to interest rate movements. The
fund's average maturity is still about 8.8 years but its modified duration is at
5.5 slightly less than it was a couple of months ago. The fund has approximately
28% of its portfolio in U.S. Treasury securities, approximately 19% in
government agencies, approximately 28% in corporate bonds and approximately 22%
in mortgage-backed securities. The fund's short-term investments account for
approximately 3% of its assets. Over the reporting period the fund has kept its
turnover low as the portfolio was properly positioned to benefit from the
interest rate environment. The Great Plains Intermediate Bond Fund's total
return for the five month period ended February 28, 1998, was 4.19% (1.05%
adjusted for the sales charge).*
GREAT PLAINS TAX-FREE BOND FUND
The municipal bond market followed its taxable counterparts to lower interest
rates over the last six months, but since year end it, too, has traded sideways
with little change in overall interest rates. The tax-exempt bond market, like
the other markets, have unique factors that influence its interest rate levels
and the shape of its yield curve. Most recently the supply of new municipal
bonds has been increasing so the yields available in the municipal bond market
have been closer to the yields offered in the taxable markets. Therefore,
municipal bonds have become a relatively more attractive investment than they
were during most of 1997. This relative attractiveness can disappear when bond
market conditions change.
The management of the Great Plains Tax-Free Bond Fund continues to focus on
providing current income exempt from federal and state income taxes with an
emphasis on providing income exempt from Nebraska taxes.** To accomplish this
the fund has maintained just under 60% of its assets in Nebraska bonds and added
to its position of Puerto Rico municipal bonds, which are also exempt from
Nebraska state income taxes. The fund has kept its turnover low and minimized
the recognition of taxable capital gains. The fund's average maturity is 7.8
years and it has a duration of 4.7 years. These portfolio measures are slightly
longer than they were six months ago as the fund has been attempting to its
increase its income distribution by investing in longer bonds, which provide
higher yields. The Great Plains Tax-Free Bond Fund had a total return of 2.68%
for the five month period ended February 28, 1998 (- 0.41% adjusted for the
sales charge).*
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
** Income may be subject to the federal alternative minimum tax.
A. Please insert the following "Financial Highlights" table as page 2.
GREAT PLAINS EQUITY FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- ------------------------------------------------------- ------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------
Net investment income 0.02
------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.93
------------------------------------------------------
--------
Total from investment operations 0.95
------------------------------------------------------
--------
LESS DISTRIBUTIONS
- -------------------------------------------------------
Distributions from net investment income (0.02)
------------------------------------------------------
--------
NET ASSET VALUE, END OF PERIOD $10.93
- -------------------------------------------------------
--------
TOTAL RETURN (B) 9.48%
- -------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------
Expenses 1.01%*
------------------------------------------------------
Net investment income 0.42%*
------------------------------------------------------
Expense waiver/reimbursement (c) 0.00%*
------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------
Net assets, end of period (000 omitted) $204,727
------------------------------------------------------
Average commission rate paid (d) $0.0457
------------------------------------------------------
Portfolio turnover 13%
------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from September 29, 1997 (date of initial
public investment) to February 28, 1998.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS PREMIER FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- ----------------------------------------------------------- ------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------
Net investment loss 0.00
----------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency 0.36
----------------------------------------------------------
-------
Total from investment operations 0.36
----------------------------------------------------------
-------
Distributions from net investment income 0.00(e)
----------------------------------------------------------
-------
NET ASSET VALUE, END OF PERIOD $ 10.36
- -----------------------------------------------------------
-------
TOTAL RETURN (B) 3.61%
- -----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------
Expenses 1.40%*
----------------------------------------------------------
Net investment loss (0.08%)*
----------------------------------------------------------
Expense waiver/reimbursement (c) 0.20%*
----------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------
Net assets, end of period (000 omitted) $25,785
----------------------------------------------------------
Average commission rate paid (d) $0.0075
----------------------------------------------------------
Portfolio turnover 21%
----------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from September 29, 1997 (date of initial
public investment) to February 28, 1997.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(e) Distributions less than one cent per share.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS INTERMEDIATE BOND FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998 (A)
- ------------------------------------------------------- ------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------
Net investment income 0.25
------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.17
------------------------------------------------------
--------
Total from investment operations 0.42
------------------------------------------------------
--------
LESS DISTRIBUTIONS
- -------------------------------------------------------
Distributions from net investment income (0.25)
------------------------------------------------------
Distributions from net realized gains (0.00)(d)
------------------------------------------------------
--------
Total distributions (0.25)
------------------------------------------------------
--------
NET ASSET VALUE, END OF PERIOD $ 10.17
- -------------------------------------------------------
--------
TOTAL RETURN (B) 4.19%
- -------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------
Expenses 0.79%*
------------------------------------------------------
Net investment income 5.91%*
------------------------------------------------------
Expense waiver/reimbursement (c) 0.00%*
------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------
Net assets, end of period (000 omitted) $137,206
------------------------------------------------------
Portfolio turnover 3%
------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from September 29, 1997 (date of initial
public investment) to February 28, 1998.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(d) Distributions less than one cent per share.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS TAX-FREE BOND FUND
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- ------------------------------------------------------- ------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
- -------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------
Net investment income 0.11
------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.09
------------------------------------------------------
-------
Total from investment operations 0.20
------------------------------------------------------
-------
LESS DISTRIBUTIONS
- -------------------------------------------------------
Distributions from net investment income (0.11)
------------------------------------------------------
-------
NET ASSET VALUE, END OF PERIOD $ 10.09
- -------------------------------------------------------
-------
TOTAL RETURN (B) 2.68%
- -------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------
Expenses 0.85%*
------------------------------------------------------
Net investment income 4.24%*
------------------------------------------------------
Expense waiver/reimbursement (c) 0.00%*
------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------
Net assets, end of period (000 omitted) $65,831
------------------------------------------------------
Portfolio turnover 4%
------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from September 29, 1997 (date of initial
public investment) to February 28, 1998.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
B. Effective January 23, 1998, the contract between First Commerce Investors,
Inc. (the "Adviser") and Peter Kinney (the "Sub-Adviser") was terminated.
Accordingly, please delete all references to the Sub-Adviser.
C.Please delete the section entitled "Purchases at Net Asset Value" on page 10
and replace it with the following:
PURCHASES AT NET ASSET VALUE. Shares of the Funds may be purchased at net
asset value, without a sales charge:
. by or through the Trust Division of NBC, other affiliates or
correspondent financial depository institution of First Commerce
Bancshares for accounts which are held in a fiduciary, agency, custodial,
or similar capacity, except for those customers whose only relationship
is a custodial IRA;
. by current fiduciary customers of NBC, other affiliates, or
correspondent financial depository institutions of NBC;
. by trustees, directors and current and retired employees of FCBI,
NBC, the Adviser, the Distributor and their affiliates, as well as
the spouses and children under the age of 21 of such trustees,
directors and employees;
. by shareholders of First Commerce Bancshares, the Adviser, the
Distributor and their affiliates with a position of at least 1,000
shares;
. by any accounts for which a current or retired employee of NBC, the
Adviser, the Distributor and their affiliates serves in a fiduciary,
agency, custodial or similar capacity;
. by trust companies or trust divisions of other non-affiliated financial
depository institutions if the aggregate account has a current market
value greater than $1,000,000 or demonstrates the intent of investing
$1,000,000 over a period of time;
. by accounts transferred or distributed out of the Trust Division of
NBC, its correspondents or other affiliates into accounts maintained
by NBC as dealer;
. by financial depository institutions that have a current
correspondent relationship with NBC as fiduciary; and
. by investors who purchase shares through a wrap account or a no-
transaction fee program if the sponsor of the wrap account or no-
transaction fee program has entered into a sales agreement with the
Distributor.
In addition, any Fund of the Trust may purchase shares of another Fund of the
Trust at net asset value without any sales charge.
D. Please delete the second and third sentences of the second paragraph of the
section entitled "Adviser's Background" on page 16 replace with the
following:
As of December 31, 1997, the Adviser managed discretionary assets of over $1
billion. Although the Adviser has not previously served as an investment
adviser to a mutual fund, it has managed, on behalf of its trust clients,
eight common and collective investment funds having a market value of
approximately $413 million as of July 31, 1997.
E. Please add the following as the third paragraph of the section entitled
"Voting Rights" on page 19.
As of April 6, 1998, Firlin and Company, c/o NBC Trust Division, Lincoln,
Nebraska, owned 95.77% of the Equity Fund; 93.67% of the Premier Fund; 98.30%
of the Intermediate Bond Fund; and 96.58% of the Tax-Free Bond Fund, and
therefore, may, for certain purposes, be deemed to control each Fund and be
able to affect the outcome of certain matters presented for a vote of
shareholders.
F. Please delete the performance chart on page 21 and replace it with the
following:
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
FOR THE PERIOD ENDED FEBRUARY 28, 1998*
REFLECTING LOAD/WITHOUT LOAD
PREDECESSOR COMMON FUNDS ---------------------------------------------------------
(CORESPONDINGRGREAT PLAINS FUNDS) 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ---------------------------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Value Plus Stock Fund "A" 26.03%/29.93% 26.49%/27.78% 18.34%/19.06% 14.44%/14.79%
(GREAT PLAINS
EQUITY FUND)
Premier Stock Fund "J" 24.74%/28.60% 25.17%/26.45% 17.08%/17.80% 12.30%/12.66%**
(GREAT PLAINS
PREMIER FUND)
Income Bond Fund "B" 6.98%/10.29% 7.55%/8.64% 5.50%/6.14% 7.45%/7.78%
(GREAT PLAINS
INTERMEDIATE BOND FUND)
Tax- Exempt Bond Fund "G" 2.83%/6.01% 5.05%/6.12% 3.95%/4.58% 5.42%/5.74%
(GREAT PLAINS
TAX-FREE BOND FUND)
</TABLE>
- --------
* The Average Annual Total Return for each common fund has been adjusted to
reflect each corresponding Fund's expenses, net of voluntary waivers.
** Since inception of October 1988.
G. Please supplement the "Statement of Assets and Liabilities" on page 40 and
the corresponding "Independent Auditors' Report" on page 41 with the
following Financial Statements:
GREAT PLAINS EQUITY FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------- ------------
<C> <S> <C>
COMMON STOCKS--96.1%
------------------------------------------
AUTOMOTIVE--2.3%
-------------------------------
152,517 Autoliv, Inc. $ 4,708,962
------------------------------- ------------
BANKING--2.8%
-------------------------------
17,530 Wells Fargo & Co. 5,644,660
------------------------------- ------------
BROADCASTING--2.1%
-------------------------------
20,170 Canal Plus 4,255,218
------------------------------- ------------
CAPITAL EQUIPMENT--1.0%
-------------------------------
165,000 ABB AB 2,073,201
------------------------------- ------------
CHEMICALS--5.9%
-------------------------------
268,730 Hanna (M.A.) Co. 6,231,177
-------------------------------
154,350 Lilly Industrial, Inc., Class A 3,106,294
-------------------------------
80,700 Morton International, Inc. 2,668,144
------------------------------- ------------
Total 12,005,615
------------------------------- ------------
CONSUMER PRODUCTS--2.6%
-------------------------------
306,710 Reckitt & Colman PLC 5,414,342
------------------------------- ------------
CONSUMER SERVICES--8.6%
-------------------------------
171,850 Block (H&R), Inc. 8,087,691
-------------------------------
226,040 Manpower, Inc. 9,536,063
------------------------------- ------------
Total 17,623,754
------------------------------- ------------
FINANCE-INSURANCE--9.2%
-------------------------------
267,935 20th Century Industries 7,167,261
-------------------------------
47,837 Allstate Corp. 4,460,800
-------------------------------
133,260 Scor SA 6,891,436
-------------------------------
5,500 Scor SA, ADR 286,000
------------------------------- ------------
Total 18,805,497
------------------------------- ------------
</TABLE>
GREAT PLAINS EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS--CONTINUED
------------------------------------------------
FINANCE-INVESTMENTS--2.9%
-------------------------------------
107 (a)Berkshire Hathaway, Inc., Class A $ 5,970,600
------------------------------------- ------------
FINANCE-SERVICES--1.0%
-------------------------------------
60,000 Fair Isaac & Co., Inc. 2,122,500
------------------------------------- ------------
FOOD & TOBACCO--6.5%
-------------------------------------
161,093 Diageo PLC 1,649,464
-------------------------------------
57,084 Diageo PLC, ADR 2,372,574
-------------------------------------
36,650 Nestle SA, ADR 3,209,001
-------------------------------------
141,600 Philip Morris Cos., Inc. 6,150,750
------------------------------------- ------------
Total 13,381,789
------------------------------------- ------------
HEALTHCARE & MEDICAL SUPPLIES--3.5%
-------------------------------------
40,800 Aetna, Inc. 3,564,900
-------------------------------------
92,200 Pharmacia & Upjohn, Inc. 3,647,663
------------------------------------- ------------
Total 7,212,563
------------------------------------- ------------
INTERNATIONAL OIL--3.5%
-------------------------------------
55,804 Royal Dutch Petroleum Co., ADR 3,030,855
-------------------------------------
244,550 Saga Petroleum A.S., Class A 4,163,405
------------------------------------- ------------
Total 7,194,260
------------------------------------- ------------
LEISURE & RECREATION--10.2%
-------------------------------------
135,868 Carnival Corp., Class A 7,999,228
-------------------------------------
22,000 Disney (Walt) Co. 2,462,625
-------------------------------------
286,450 Hasbro, Inc. 10,401,716
------------------------------------- ------------
Total 20,863,569
------------------------------------- ------------
MORTGAGES--6.3%
-------------------------------------
155,500 Federal Home Loan Mortgage Corp. 7,347,375
-------------------------------------
86,835 Federal National Mortgage Association 5,541,158
------------------------------------- ------------
Total 12,888,533
------------------------------------- ------------
</TABLE>
GREAT PLAINS EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------------------------------------------- ------------
<C> <S> <C>
COMMON STOCKS--CONTINUED
-------------------------------------------------------------
PRINTING & PUBLISHING--6.4%
--------------------------------------------------
11,930 Edipresse SA $ 3,498,057
--------------------------------------------------
30,000 Marieberg Tidnings AB, Class A 693,880
--------------------------------------------------
292,800 NV Holdingmaatschappij De Telegraaf 6,301,548
--------------------------------------------------
168,700 Pearson 2,515,297
-------------------------------------------------- ------------
Total 13,008,782
-------------------------------------------------- ------------
STEEL--1.8%
--------------------------------------------------
72,700 Nucor Corporation 3,744,050
-------------------------------------------------- ------------
TECHNOLOGY--5.5%
--------------------------------------------------
57,500 OY Nokia AB, Class A, ADR 5,793,125
--------------------------------------------------
269,240 (a)Vishay Intertechnology, Inc. 5,485,765
-------------------------------------------------- ------------
Total 11,278,890
-------------------------------------------------- ------------
TELECOMMUNICATIONS--9.2%
--------------------------------------------------
444,740 (a)360 Communications Co. 11,785,610
--------------------------------------------------
216,100 (a)Sitel Corp. 2,188,013
--------------------------------------------------
289,100 Telecom Italia SPA 1,404,701
--------------------------------------------------
501,378 Telecom Italia SPA 3,413,673
-------------------------------------------------- ------------
Total 18,791,997
-------------------------------------------------- ------------
TRUCKING--3.2%
--------------------------------------------------
262,150 Werner Enterprises, Inc. 6,520,981
-------------------------------------------------- ------------
UTILITIES--1.6%
--------------------------------------------------
119,400 (a)CalEnergy Co., Inc. 3,201,412
-------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $138,304,467) 196,711,175
-------------------------------------------------- ------------
</TABLE>
GREAT PLAINS EQUITY FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUTUAL FUND SHARES--2.2%
---------------------------------------------------------------
4,567,448 Benchmark Diversified Fund (AT NET ASSET VALUE) $ 4,567,448
---------------------------------------------------- ------------
U.S. TREASURY--1.8%
---------------------------------------------------------------
U.S. TREASURY BILLS--1.8%
----------------------------------------------------
$2,250,000 4/2/1998 2,240,212
----------------------------------------------------
1,500,000 5/28/1998 1,481,220
---------------------------------------------------- ------------
TOTAL U.S. TREASURY (IDENTIFIED COST $3,720,523) 3,721,432
---------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $146,592,438)(B) $205,000,055
---------------------------------------------------- ------------
</TABLE>
(a) Non-income producing security.
(b) The cost of investments for federal tax purposes amounts to $146,592,438.
The net unrealized appreciation of investments on a federal tax basis
amounts to $58,407,617 which is comprised of $59,573,588 appreciation and
$1,165,971 depreciation at February 28, 1998.
Note: The categories of investments are shown as a percentage of net assets
($204,726,733) at February 28, 1998.
The following acronyms are used throughout this portfolio:
ADR--American Depository Receipt
PLC--Public Limited Company
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ------------------------------------------------
Total investments in securities, at value
(identified and tax cost $146,592,438) $205,000,055
- ------------------------------------------------
Income receivable 168,355
- ------------------------------------------------
Receivable for investments sold 1,510,763
- ------------------------------------------------ ------------
Total assets 206,679,173
- ------------------------------------------------
LIABILITIES:
- -----------------------------------
Payable for investments purchased $1,510,763
- -----------------------------------
Income distribution payable 244,793
- -----------------------------------
Accrued expenses 196,884
- ----------------------------------- ------------
Total liabilities 1,952,440
- ------------------------------------------------ ------------
NET ASSETS for 18,733,430 shares outstanding $204,726,733
- ------------------------------------------------ ------------
NET ASSETS CONSIST OF:
- ------------------------------------------------
Paid in capital $145,594,632
- ------------------------------------------------
Net unrealized appreciation of investments 58,407,780
- ------------------------------------------------
Accumulated net realized gain on investments 723,727
- ------------------------------------------------
Undistributed net investment income 594
- ------------------------------------------------ ------------
Total Net Assets $204,726,733
- ------------------------------------------------ ------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PROCEEDS PER SHARE:
- ------------------------------------------------
Net Asset Value Per Share $10.93
($204,726,733/18,733,430 shares outstanding) ------------
- ------------------------------------------------
Offering Price Per Share (100/97.00 of $10.93)* $11.27
- ------------------------------------------------ ------------
Redemption Proceeds Per Share $10.93
- ------------------------------------------------ ------------
</TABLE>
*See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS EQUITY FUND
STATEMENT OF OPERATIONS
PERIOD ENDED FEBRUARY 28, 1998 (UNAUDITED)(A)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------
Dividends $ 786,006
- ----------------------------------------------------------
Interest 305,765
- ---------------------------------------------------------- -----------
Total income 1,091,771
- ----------------------------------------------------------
EXPENSES:
- -----------------------------------------------
Investment advisory fee $ 570,053
- -----------------------------------------------
Administrative personnel and services fee 106,632
- -----------------------------------------------
Custodian fees 12,124
- -----------------------------------------------
Transfer and dividend disbursing agent fees and
expenses 9,816
- -----------------------------------------------
Trustees' fees 2,035
- -----------------------------------------------
Legal fees 2,081
- -----------------------------------------------
Portfolio accounting fees 28,546
- -----------------------------------------------
Share registration costs 31,666
- -----------------------------------------------
Printing and postage 5,428
- -----------------------------------------------
Insurance premiums 1,946
- -----------------------------------------------
Miscellaneous 2,262
- ----------------------------------------------- ---------
Total expenses 772,589
- -----------------------------------------------
Waiver of investment advisory fee (2,159)
- ----------------------------------------------- ---------
Net expenses 770,430
- ---------------------------------------------------------- -----------
Net investment income 321,341
- ---------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------
Net realized gain on investments 723,727
- ----------------------------------------------------------
Net change in unrealized appreciation of investments 58,407,780
- ---------------------------------------------------------- -----------
Net realized and unrealized gain on investments 59,131,507
- ---------------------------------------------------------- -----------
Change in net assets resulting from operations $59,452,848
- ---------------------------------------------------------- -----------
</TABLE>
(a)For the period from September 29, 1997 (date of initial public investment) to
February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- --------------------------------------------------------------- ------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------------
Net investment income $ 321,341
- ---------------------------------------------------------------
Net realized gain on investments ($723,727 as computed
for federal tax purposes) 723,727
- ---------------------------------------------------------------
Net change in unrealized appreciation 58,407,780
- --------------------------------------------------------------- ------------
Change in net assets resulting from operations 59,452,848
- --------------------------------------------------------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------------
Distributions from net investment income (320,747)
- --------------------------------------------------------------- ------------
Change in net assets resulting from distributions to (320,747)
shareholders ------------
- ---------------------------------------------------------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------------
Proceeds from sale of shares 155,746,893
- ---------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 69,972
- ---------------------------------------------------------------
Cost of shares redeemed (10,222,233)
- --------------------------------------------------------------- ------------
Change in net assets resulting from share transactions 145,594,632
- --------------------------------------------------------------- ------------
Change in net assets 204,726,733
- ---------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------
Beginning of period 0
- --------------------------------------------------------------- ------------
End of period (including undistributed net investment income of $204,726,733
$594) ------------
- ---------------------------------------------------------------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS PREMIER FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
-------- --------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--88.2%
------------------------------------------------
AIRLINES--4.8%
---------------------------------------
30,500 ASA Holdings Ltd. $ 1,227,625
--------------------------------------- -----------
AUTOMOTIVE--7.2%
---------------------------------------
20,700 (a)Keystone Automotive Industries, Inc. 438,581
---------------------------------------
49,700 (a)Motorcar Parts and Accessories, Inc. 832,475
---------------------------------------
36,270 (a)Republic Automotive Parts, Inc. 593,921
--------------------------------------- -----------
Total 1,864,977
--------------------------------------- -----------
CHEMICALS--9.1%
---------------------------------------
47,530 Hanna (M.A.) Co. 1,102,102
---------------------------------------
62,000 Lilly Industrial, Inc., Class A 1,247,750
--------------------------------------- -----------
Total 2,349,852
--------------------------------------- -----------
CONSUMER PRODUCTS--5.3%
---------------------------------------
73,000 (a)Meadowcraft, Inc. 903,375
---------------------------------------
13,900 (a)Scotts Co. 472,600
--------------------------------------- -----------
Total 1,375,975
--------------------------------------- -----------
CONSUMER SERVICES--1.4%
---------------------------------------
8,700 Manpower, Inc. 367,031
--------------------------------------- -----------
FINANCE-INSURANCE--6.7%
---------------------------------------
43,000 20th Century Industries 1,150,250
---------------------------------------
11,090 Scor SA 573,511
--------------------------------------- -----------
Total 1,723,761
--------------------------------------- -----------
FINANCE-INVESTMENTS--2.3%
---------------------------------------
1,610 Wesco Financial Corp. 586,040
--------------------------------------- -----------
FINANCE-SERVICES--12.5%
---------------------------------------
42,550 Duff & Phelps Credit Rating 1,824,331
---------------------------------------
39,430 Fair Isaac & Co., Inc. 1,394,836
--------------------------------------- -----------
Total 3,219,167
--------------------------------------- -----------
</TABLE>
GREAT PLAINS PREMIER FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
--------- -------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS--CONTINUED
------------------------------------------------------------
INTERNATIONAL OIL--2.1%
--------------------------------------------------
31,000 Saga Petroleum A.S., Class A $ 527,767
-------------------------------------------------- -----------
LEISURE & RECREATION--1.5%
--------------------------------------------------
10,500 Hasbro, Inc. 381,281
-------------------------------------------------- -----------
PAPERS--4.6%
--------------------------------------------------
54,400 Wausau-Mosinee Paper Corp. 1,176,400
-------------------------------------------------- -----------
PRINTING & PUBLISHING--11.0%
--------------------------------------------------
3,800 Edipresse SA 1,114,218
--------------------------------------------------
32,000 Marieberg Tidnings AB, Class A 740,139
--------------------------------------------------
45,500 NV Holdingmaatschappij De Telegraaf 979,236
-------------------------------------------------- -----------
Total 2,833,593
-------------------------------------------------- -----------
TECHNOLOGY--5.7%
--------------------------------------------------
56,232 (a)New Horizons Worldwide, Inc. 731,016
--------------------------------------------------
36,364 (a)Vishay Intertechnology, Inc. 740,917
-------------------------------------------------- -----------
Total 1,471,933
-------------------------------------------------- -----------
TELECOMMUNICATIONS--9.0%
--------------------------------------------------
44,750 (a)360 Communications Co. 1,185,875
--------------------------------------------------
113,100 (a)Sitel Corp. 1,145,138
-------------------------------------------------- -----------
Total 2,331,013
-------------------------------------------------- -----------
TRUCKING--5.0%
--------------------------------------------------
52,220 Werner Enterprises, Inc. 1,298,973
-------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $19,500,879) 22,735,388
-------------------------------------------------- -----------
MUTUAL FUND SHARES--0.9%
------------------------------------------------------------
243,522 Benchmark Diversified Fund (AT NET ASSET VALUE) 243,522
-------------------------------------------------- -----------
U.S. TREASURY SECURITIES--11.6%
------------------------------------------------------------
U.S. TREASURY BILLS--11.6%
--------------------------------------------------
$500,000 3/5/1998 499,795
--------------------------------------------------
750,000 4/2/1998 746,738
--------------------------------------------------
700,000 4/30/1998 694,001
--------------------------------------------------
</TABLE>
GREAT PLAINS PREMIER FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- --------------------------------------------------- -----------
<C> <S> <C>
U.S. TREASURY SECURITIES--CONTINUED
-------------------------------------------------------------
$750,000 5/14/1998 $ 742,260
---------------------------------------------------
300,000 5/28/1998 296,244
--------------------------------------------------- -----------
TOTAL U.S. TREASURY SECURITIES (IDENTIFIED COST
$2,956,866) 2,979,038
--------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $22,701,267)(B) $25,957,948
--------------------------------------------------- -----------
</TABLE>
(a) Non-income producing security.
(b) The cost of investments for federal tax purposes amounts to $22,701,267. The
net unrealized appreciation of investments on a federal tax basis amounts to
$3,256,681 which is comprised of $3,495,417 appreciation and $238,736
depreciation at February 28, 1998.
Note: The categories of investments are shown as a percentage of net assets
($25,784,712) at February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS PREMIER FUND
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ------------------------------------------------
Total investments in securities, at value
(identified and tax cost $22,701,267) $25,957,948
- ------------------------------------------------
Income receivable 28,433
- ------------------------------------------------
Receivable for investments sold 83,709
- ------------------------------------------------ -----------
Total assets 26,070,090
- ------------------------------------------------
LIABILITIES:
- ------------------------------------
Payable for investments purchased $166,990
- ------------------------------------
Payable to Bank 78,459
- ------------------------------------
Accrued expenses 39,929
- ------------------------------------ -----------
Total liabilities 285,378
- ------------------------------------------------ -----------
NET ASSETS for 2,489,741 shares outstanding $25,784,712
- ------------------------------------------------ -----------
NET ASSETS CONSIST OF:
- ------------------------------------------------
Paid in capital $22,467,871
- ------------------------------------------------
Net unrealized appreciation of investments and
translation of
assets and liabilities in foreign currency 3,256,681
- ------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 70,431
- ------------------------------------------------
Distributions in excess of net investment income (10,271)
- ------------------------------------------------ -----------
Total Net Assets $25,784,712
- ------------------------------------------------ -----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PROCEEDS PER SHARE:
- ------------------------------------------------
Net Asset Value Per Share $10.36
($25,784,712 / 2,489,741 shares outstanding) -----------
- ------------------------------------------------
Offering Price Per Share (100/97.00 of $10.36)* $10.68
- ------------------------------------------------ -----------
Redemption Proceeds Per Share $10.36
- ------------------------------------------------ -----------
</TABLE>
*See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS PREMIER FUND
STATEMENT OF OPERATIONS
PERIOD ENDED FEBRUARY 28, 1998 (UNAUDITED)(A)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -------------------------------------------------------------
Dividends $ 41,389
- -------------------------------------------------------------
Interest 78,056
- ------------------------------------------------------------- ----------
Total income 119,445
- -------------------------------------------------------------
EXPENSES:
- -------------------------------------------------
Investment advisory fee $ 90,545
- -------------------------------------------------
Administrative personnel and services fee 12,691
- -------------------------------------------------
Custodian fees 7,275
- -------------------------------------------------
Transfer and dividend disbursing agent fees and
expenses 9,816
- -------------------------------------------------
Trustees' fees 2,035
- -------------------------------------------------
Legal fees 2,081
- -------------------------------------------------
Portfolio accounting fees 5,388
- -------------------------------------------------
Share registration costs 7,266
- -------------------------------------------------
Printing and postage 5,428
- -------------------------------------------------
Insurance premiums 1,809
- -------------------------------------------------
Miscellaneous 904
- ------------------------------------------------- ----------
Total expenses 145,238
- -------------------------------------------------
Waivers--
- -------------------------------------
Waiver of investment advisory fee $ (18,320)
- ------------------------------------- -----------
Total waivers (18,320)
- ------------------------------------------------- ----------
Net expenses 126,918
- ------------------------------------------------------------- ----------
Net operating loss (7,473)
- ------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY:
- -------------------------------------------------------------
Net realized gain on investments and foreign currency
transactions 70,431
- -------------------------------------------------------------
Net change in unrealized appreciation of investments and 3,256,681
translation of assets and liabilities in foreign currency ----------
- -------------------------------------------------------------
Net realized and unrealized gain on investments and 3,327,112
foreign currency ----------
- -------------------------------------------------------------
Change in net assets resulting from operations $3,319,639
- ------------------------------------------------------------- ----------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS PREMIER FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- -------------------------------------------------------------- ------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment operating loss $ (7,473)
- --------------------------------------------------------------
Net realized gain (loss) on investments and foreign currency
transactions
($70,431 net gain, as computed for federal tax purposes) 70,431
- --------------------------------------------------------------
Net change in unrealized appreciation/depreciation of
investments
and translation of assets and liabilities in foreign currency 3,256,681
- -------------------------------------------------------------- -----------
Change in net assets resulting from operations 3,319,639
- -------------------------------------------------------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Distributions from net investment income (2,798)
- -------------------------------------------------------------- -----------
SHARE TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 23,816,960
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 1,633
- --------------------------------------------------------------
Cost of shares redeemed (1,350,722)
- -------------------------------------------------------------- -----------
Change in net assets resulting from share transactions 22,467,871
- -------------------------------------------------------------- -----------
Change in net assets 25,784,712
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period --
- -------------------------------------------------------------- -----------
End of period $25,784,712
- -------------------------------------------------------------- -----------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- --------------------------------------------------- ------------
<C> <S> <C>
ASSET-BACKED SECURITIES--0.1%
---------------------------------------------------------------
$ 134,393 Sears Consumer Financial Corp. 1991-1, Class A,
7.25%, 9/15/2006 (IDENTIFIED COST $133,871) $ 136,395
--------------------------------------------------- ------------
CORPORATE BONDS--27.9%
---------------------------------------------------------------
FINANCE--18.6%
---------------------------------------------------
2,000,000 ABN-AMRO Bank NV, Chicago, Sub., 6.625%, 10/31/2001 2,036,860
---------------------------------------------------
1,000,000 AON Corp., Note, 6.30%, 1/15/2004 998,450
---------------------------------------------------
Associates Corp. of North America, Sr. Note, 7.50%,
1,000,000 4/15/2002 1,049,420
---------------------------------------------------
Bayerische Landesbank-NY, Sub. Note, 6.375%,
2,000,000 10/15/2005 2,018,440
---------------------------------------------------
2,000,000 Bear Stearns Cos., Inc., Sr. Note, 7.00%, 3/1/2007 2,067,260
---------------------------------------------------
2,000,000 Ford Motor Credit Corp., Note, 6.625%, 6/30/2003 2,038,880
---------------------------------------------------
1,000,000 Ford Motor Credit Corp., Note, 7.00%, 9/25/2001 1,028,660
---------------------------------------------------
1,000,000 Ford Motor Credit Corp., Note, 7.50%, 1/15/2003 1,057,190
---------------------------------------------------
2,000,000 GMAC, Note, 6.875%, 7/15/2001 2,046,280
---------------------------------------------------
1,000,000 IBM Credit Corp., Note, 6.20%, 8/28/2000 1,007,730
---------------------------------------------------
2,000,000 ITT Hartford Group, Inc., Note, 8.20%, 10/15/1998 2,028,260
---------------------------------------------------
International Lease Finance Corp., Note, 6.625%,
1,000,000 8/15/2000 1,012,550
---------------------------------------------------
International Lease Finance Corp., Note, 6.875%,
1,000,000 5/1/2001 1,023,860
---------------------------------------------------
2,000,000 Merrill Lynch & Co., Inc., Note, 6.25%, 1/15/2006 1,983,000
---------------------------------------------------
2,000,000 Northern Trust Corp., Sub. Note, 7.30%, 9/15/2006 2,131,720
---------------------------------------------------
2,000,000 Norwest Corp., Sub. Note, 6.625%, 3/15/2003 2,049,180
--------------------------------------------------- ------------
Total 25,577,740
--------------------------------------------------- ------------
INDUSTRIALS--7.1%
---------------------------------------------------
1,000,000 Anheuser-Busch Cos., Inc., Note, 7.00%, 9/1/2005 1,031,660
---------------------------------------------------
1,000,000 CPC International, Inc., Note, 6.15%, 1/15/2006 996,210
---------------------------------------------------
2,000,000 Disney (Walt) Co., Bond, 6.75%, 3/30/2006 2,077,960
---------------------------------------------------
2,000,000 Philip Morris Cos., Inc., Note, 7.50%, 1/15/2002 2,073,380
---------------------------------------------------
1,500,000 Pitney Bowes, Inc., Note, 5.95%, 2/1/2005 1,480,725
---------------------------------------------------
</TABLE>
GREAT PLAINS INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------------------------------------------- ------------
<C> <S> <C>
CORPORATE BONDS--CONTINUED
-------------------------------------------------------------
INDUSTRIALS--CONTINUED
-------------------------------------------------
$2,000,000 Smithkline Beecham Corp., Note, 7.50%, 5/1/2002 $ 2,005,240
------------------------------------------------- ------------
Total 9,665,175
------------------------------------------------- ------------
UTILITIES--2.2%
-------------------------------------------------
1,000,000 GTE South, Inc., Deb., 6.00%, 2/15/2008 974,430
-------------------------------------------------
2,000,000 Lucent Technologies, Inc., Note, 6.90%, 7/15/2001 2,060,620
------------------------------------------------- ------------
Total 3,035,050
------------------------------------------------- ------------
TOTAL CORPORATE BONDS (IDENTIFIED COST
$37,564,085) 38,277,965
------------------------------------------------- ------------
GOVERNMENT AGENCIES--18.6%
-------------------------------------------------------------
FEDERAL HOME LOAN BANK--5.5%
-------------------------------------------------
1,000,000 6.12%, 11/24/2000 1,001,640
-------------------------------------------------
1,000,000 7.01%, 6/14/2006 1,073,810
-------------------------------------------------
3,000,000 7.20%, 6/14/2011 3,317,280
-------------------------------------------------
2,000,000 7.70%, 9/20/2004 2,205,680
------------------------------------------------- ------------
Total 7,598,410
------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--5.5%
-------------------------------------------------
2,000,000 6.48%, 12/5/2011 2,077,400
-------------------------------------------------
1,000,000 6.78%, 3/15/2004 1,005,600
-------------------------------------------------
4,000,000 7.93%, 1/20/2005 4,472,680
------------------------------------------------- ------------
Total 7,555,680
------------------------------------------------- ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--5.1%
-------------------------------------------------
1,000,000 6.22%, 3/13/2006 1,022,130
-------------------------------------------------
1,000,000 6.44%, 6/21/2005 1,035,140
-------------------------------------------------
1,000,000 7.93%, 2/14/2025 1,214,540
-------------------------------------------------
2,000,000 8.20%, 3/10/2016 2,408,320
-------------------------------------------------
1,000,000 8.43%, 11/18/2024 1,278,110
------------------------------------------------- ------------
Total 6,958,240
------------------------------------------------- ------------
STUDENT LOAN MARKETING ASSOCIATION--2.5%
-------------------------------------------------
3,000,000 7.30%, 8/1/2012 3,375,630
------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST
$23,740,311) 25,487,960
------------------------------------------------- ------------
</TABLE>
GREAT PLAINS INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ---------------------------------------------- ------------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--22.0%
----------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--13.6%
----------------------------------------------
$ 781,744 6.50%, 3/1/2003 $ 788,342
----------------------------------------------
1,609,177 6.50%, 4/1/2003 1,622,759
----------------------------------------------
1,561,802 6.50%, 9/1/2010 1,569,127
----------------------------------------------
1,619,500 6.50%, 2/1/2011 1,627,095
----------------------------------------------
1,972,741 6.50%, 2/1/2011 1,981,993
----------------------------------------------
1,813,920 6.50%, 1/1/2026 1,799,754
----------------------------------------------
675,873 7.00%, 6/1/2003 688,337
----------------------------------------------
1,177,677 7.00%, 3/1/2011 1,199,393
----------------------------------------------
2,568,270 7.00%, 12/1/2011 2,615,629
----------------------------------------------
1,484,262 7.00%, 8/1/2015 1,516,738
----------------------------------------------
716,624 7.50%, 5/1/2000 729,838
----------------------------------------------
1,714,513 7.50%, 5/1/2016 1,760,050
----------------------------------------------
715,175 8.00%, 7/1/1999 729,256
---------------------------------------------- ------------
Total 18,628,311
---------------------------------------------- ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--4.8%
----------------------------------------------
1,553,314 7.00%, 8/1/2001 1,580,497
----------------------------------------------
1,907,502 7.00%, 3/1/2004 1,940,883
----------------------------------------------
1,820,735 7.00%, 5/1/2016 1,858,861
----------------------------------------------
1,209,924 8.00%, 7/1/2014 1,267,021
---------------------------------------------- ------------
Total 6,647,262
---------------------------------------------- ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--3.6%
----------------------------------------------
2,755,202 6.50%, 2/20/2026 2,719,054
----------------------------------------------
1,649,451 7.50%, 8/20/2025 1,687,075
----------------------------------------------
63,523 8.50%, 8/15/2016 67,195
----------------------------------------------
93,724 8.50%, 8/15/2016 99,142
----------------------------------------------
59,330 9.00%, 1/15/2004 62,370
----------------------------------------------
75,875 9.00%, 2/15/2017 81,376
----------------------------------------------
67,146 9.00%, 9/15/2019 72,014
----------------------------------------------
83,359 9.00%, 9/15/2019 89,402
----------------------------------------------
</TABLE>
GREAT PLAINS INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- --------------------------------------------------- ------------
<C> <S> <C>
MORTGAGE BACKED SECURITIES--CONTINUED
---------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--CONTINUED
---------------------------------------------------
$ 17,088 10.00%, 4/15/2001 $ 18,167
---------------------------------------------------
9,859 10.00%, 9/15/2003 10,481
--------------------------------------------------- ------------
Total 4,906,276
--------------------------------------------------- ------------
TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST
$29,737,352) 30,181,849
--------------------------------------------------- ------------
U.S. TREASURY SECURITIES--27.8%
---------------------------------------------------------------
2,500,000 8.75%, 8/15/2000 2,679,800
---------------------------------------------------
600,000 8.00%, 5/15/2001 641,424
---------------------------------------------------
3,250,000 7.50%, 11/15/2001 3,452,410
---------------------------------------------------
2,000,000 6.25%, 6/30/2002 2,046,840
---------------------------------------------------
1,000,000 6.25%, 2/15/2003 1,027,300
---------------------------------------------------
2,000,000 5.75%, 8/15/2003 2,011,980
---------------------------------------------------
3,000,000 5.875%, 2/15/2004 3,042,660
---------------------------------------------------
1,000,000 7.25%, 8/15/2004 1,085,470
---------------------------------------------------
2,700,000 7.875%, 11/15/2004 3,026,214
---------------------------------------------------
1,500,000 7.50%, 2/15/2005 1,654,050
---------------------------------------------------
1,000,000 6.50%, 5/15/2005 1,047,210
---------------------------------------------------
550,000 8.25%, 5/15/2005 579,035
---------------------------------------------------
1,000,000 7.00%, 7/15/2006 1,083,410
---------------------------------------------------
2,000,000 6.25%, 2/15/2007 2,074,800
---------------------------------------------------
2,600,000 9.125%, 5/15/2009 3,046,082
---------------------------------------------------
500,000 8.125%, 8/15/2019 626,530
---------------------------------------------------
2,000,000 8.75%, 5/15/2020 2,669,640
---------------------------------------------------
1,000,000 8.00%, 11/15/2021 1,249,600
---------------------------------------------------
500,000 7.25%, 8/15/2022 578,180
---------------------------------------------------
4,000,000 6.875%, 8/15/2025 4,468,040
--------------------------------------------------- ------------
TOTAL U.S. TREASURY SECURITIES (IDENTIFIED COST
$36,006,546) 38,090,675
--------------------------------------------------- ------------
</TABLE>
GREAT PLAINS INTERMEDIATE BOND FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
---------- ---------------------------------------------------- ------------
<C> <S> <C>
MUTUAL FUND SHARES--2.9%
---------------------------------------------------------------
4,045,222 Benchmark Diversified Fund (AT NET ASSET VALUE) $ 4,045,222
---------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $131,227,387)(A) $136,220,066
---------------------------------------------------- ------------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $131,227,387.
The net unrealized appreciation of investments on a federal tax basis
amounts to $4,992,679 which is comprised of $5,028,897 appreciation and
$36,218 depreciation at February 28, 1998.
Note: The categories of investments are shown as a percentage of net assets
($137,205,532) at February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS INTERMEDIATE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS:
- -------------------------------------
<S> <C> <C>
Total investments in securities, at
value (identified and tax cost
$131,227,387) $136,220,066
- -------------------------------------
Income receivable 1,726,967
- ------------------------------------- ------------
Total assets 137,947,033
-----------------------------------
LIABILITIES:
- ---------------------------
Income distribution payable $626,845
- ---------------------------
Accrued expenses 114,656
- --------------------------- --------
Total liabilities 741,501
----------------------------------- ------------
NET ASSETS for 13,490,064 shares $137,205,532
outstanding ------------
- -------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------
Paid in capital $132,221,509
- -------------------------------------
Net unrealized appreciation of
investments 4,992,679
- -------------------------------------
Accumulated net realized loss on (8,656)
investments ------------
- -------------------------------------
Total Net Assets $137,205,532
----------------------------------- ------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------
$137,205,532 / 13,490,064 shares $10.17
outstanding ------------
- -------------------------------------
Offering Price Per Share (100/97 of $10.48
$10.17)* ------------
- -------------------------------------
Redemption Proceeds Per Share $10.17
- ------------------------------------- ------------
</TABLE>
*See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS INTERMEDIATE BOND FUND
STATEMENT OF OPERATIONS
PERIOD ENDED FEBRUARY 28, 1998 (UNAUDITED)(A)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ------------------------------------------------------------------
Interest $3,587,576
- ------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------
Investment advisory fee $267,770
- --------------------------------------------------------
Administrative personnel and services fee 75,126
- --------------------------------------------------------
Custodian fees 11,096
- --------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 9,986
- --------------------------------------------------------
Trustees' fees 2,035
- --------------------------------------------------------
Legal fees 2,081
- --------------------------------------------------------
Portfolio accounting fees 21,424
- --------------------------------------------------------
Share registration costs 22,811
- --------------------------------------------------------
Printing and postage 5,428
- --------------------------------------------------------
Insurance premiums 1,628
- --------------------------------------------------------
Miscellaneous 2,262
- -------------------------------------------------------- --------
Total expenses 421,647
------------------------------------------------------
Waivers and reimbursements--
- --------------------------------------------------------
Waiver of investment advisory fee (987)
------------------------------------------------------- --------
Net expenses 420,660
---------------------------------------------------------------- ----------
Net investment income 3,166,916
-------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ------------------------------------------------------------------
Net realized loss on investments (7,335)
- ------------------------------------------------------------------
Net change in unrealized appreciation of investments 4,992,679
- ------------------------------------------------------------------ ----------
Net realized and unrealized gain on investments 4,985,344
---------------------------------------------------------------- ----------
Change in net assets resulting from operations $8,152,260
-------------------------------------------------------------- ----------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS INTERMEDIATE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- -------------------------------------------------------------- ------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 3,166,916
- --------------------------------------------------------------
Net realized loss on investments ($7,335, net loss,
as computed for federal tax purposes) (7,335)
- --------------------------------------------------------------
Net change in unrealized appreciation 4,992,679
- -------------------------------------------------------------- ------------
Change in net assets resulting from operations 8,152,260
------------------------------------------------------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Distributions from net investment income (3,166,916)
- --------------------------------------------------------------
Distributions from net realized gains (1,321)
- -------------------------------------------------------------- ------------
Change in net assets resulting from distributions to (3,168,237)
shareholders ------------
------------------------------------------------------------
SHARE TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 138,806,766
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 1,070,357
- --------------------------------------------------------------
Cost of shares redeemed (7,755,614)
- -------------------------------------------------------------- ------------
Change in net assets resulting from share transactions 132,121,509
------------------------------------------------------------ ------------
Change in net assets 137,105,532
----------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 100,000
- -------------------------------------------------------------- ------------
End of period $137,205,532
- -------------------------------------------------------------- ------------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS TAX-FREE BOND FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--96.3%
--------------------------------------------------------
ARIZONA--1.3%
---------------------------------------------
$ 500,000 Arizona State Transportation Board, Revenue
Bonds, 5.25%, 7/1/2007 AAA $ 529,935
---------------------------------------------
300,000 Tempe, AZ, GO, 6.00%, 7/1/2005 AA+ 323,601
--------------------------------------------- -----------
Total 853,536
--------------------------------------------- -----------
CALIFORNIA--1.4%
---------------------------------------------
150,000 California Health Facilities Financing
Authority, Revenue Bonds, 7.20%, 8/1/2002
(CedarKnoll, Inc.)/(California Mortgage
Insurance) A+ 163,062
---------------------------------------------
250,000 California State Department of Water
Resources, Revenue Bonds, 5.00%, 12/1/1998 AA 252,703
---------------------------------------------
500,000 Los Angeles, CA Department of Water & Power,
Revenue Bonds, 6.75%, 5/15/1999 A+ 518,305
--------------------------------------------- -----------
Total 934,070
--------------------------------------------- -----------
DISTRICT OF COLUMBIA--0.4%
---------------------------------------------
250,000 District of Columbia, GO, 6.625%, 6/1/1998
(MBIA INS) AAA 251,952
--------------------------------------------- -----------
FLORIDA--1.2%
---------------------------------------------
300,000 Daytona Beach, FL, Revenue Bonds, 5.30%,
11/15/2001 (AMBAC) AAA 313,854
---------------------------------------------
450,000 Florida State Board of Education
Administration, GO, 5.40%, 6/1/2004 AA+ 475,151
--------------------------------------------- -----------
Total 789,005
--------------------------------------------- -----------
ILLINOIS--3.6%
---------------------------------------------
500,000 Central Lake County, IL Joint Action Water
Agency, Revenue Bonds, 5.40% 5/1/2007 (FGIC) AAA 536,995
---------------------------------------------
400,000 Chicago, IL Metropolitan Water Reclamation
District, GO, 5.45%, 12/1/2001 AA 420,468
---------------------------------------------
250,000 Illinois State, GO, 5.50%, 10/1/1998 AA 252,848
---------------------------------------------
500,000 Illinois State, GO, 5.40%, 4/1/2006 AA 535,125
---------------------------------------------
600,000 Palatine, IL, Revenue Bonds, 5.50%, 12/1/2026
(Federal National Mortgage Association) AAA 626,238
--------------------------------------------- -----------
Total 2,371,674
--------------------------------------------- -----------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
IOWA--1.3%
---------------------------------------------
$ 345,000 Cedar Rapids, IA, GO, 5.00%, 6/1/2008 Aaa $ 353,346
---------------------------------------------
500,000 Sioux City, IA, GO, 6.20%, 6/1/2004 AA- 546,235
--------------------------------------------- -----------
Total 899,581
--------------------------------------------- -----------
KANSAS--0.5%
---------------------------------------------
300,000 Kansas State Department of Transportation,
Revenue Bonds, 4.25%, 9/1/2002 AA 303,188
--------------------------------------------- -----------
KENTUCKY--0.3%
---------------------------------------------
200,000 Louisville & Jefferson County, KY
Metropolitan Sewer District, 6.80%, 5/1/1998
(Refunded) AAA 201,137
--------------------------------------------- -----------
MAINE--0.4%
---------------------------------------------
250,000 Maine State, GO, 5.40%, 3/1/2000 AA+ 257,840
--------------------------------------------- -----------
MARYLAND--1.3%
---------------------------------------------
Baltimore, MD, Revenue Bonds, 4.50%, 7/1/2003
500,000 (FGIC) AAA 509,245
---------------------------------------------
Baltimore, MD, Revenue Bonds, 5.80%, 7/1/2002
300,000 (FGIC) AAA 320,643
--------------------------------------------- -----------
Total 829,888
--------------------------------------------- -----------
MICHIGAN--0.9%
---------------------------------------------
400,000 Maruette & Baraga Counties, MI Nice Community
School District, GO, 5.25%, 5/1/2008 (MBIA) AAA 419,700
---------------------------------------------
200,000 Wayne Westland Community Schools, GO Bonds,
5.00%, 5/1/2002 (Q-SBLF) AA 202,288
--------------------------------------------- -----------
Total 621,988
--------------------------------------------- -----------
MINNESOTA--2.7%
---------------------------------------------
1,000,000 Minneapolis Special School District No. 001,
MN, GO, 5.00%, 2/1/2010 AA+ 1,023,620
---------------------------------------------
500,000 North St. Paul-Maplewood, MN GO ISD 622,
6.10%, 2/1/2004 (MBIA) AAA 548,825
---------------------------------------------
200,000 Ramsey County, MN, GO, 6.65%, 2/1/1999 AA+ 205,624
--------------------------------------------- -----------
Total 1,778,069
--------------------------------------------- -----------
MISSOURI--1.6%
---------------------------------------------
500,000 Missouri State, GO, 5.00%, 8/1/2003 AAA 520,505
---------------------------------------------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
MISSOURI--CONTINUED
---------------------------------------------
$ 500,000 St. Charles, MO Public Facilities Authority,
Revenue Bonds, 5.00%, 2/1/2001 (AMBAC) AAA $ 513,810
--------------------------------------------- -----------
Total 1,034,315
--------------------------------------------- -----------
NEBRASKA--56.6%
---------------------------------------------
445,000 Buffalo County, NE School District No. 007,
GO, 4.10%, 11/1/2003 A 443,638
---------------------------------------------
1,000,000 Cass County, NE School District No. 001, GO,
5.00%, 12/15/2014 (AMBAC) AAA 988,730
---------------------------------------------
300,000 Cass County, NE School District No. 001, GO,
6.25%, 12/1/2014 (FGIC) AAA 314,850
---------------------------------------------
300,000 Cornhusker, NE Public Power District, Revenue
Bonds, 5.20%, 3/1/2003 A 314,535
---------------------------------------------
1,450,000 Douglas County, NE Hospital Authority No. 02,
5.125%, 9/1/2012 (Immanuel Medical
Center)/(AMBAC) AAA 1,477,289
---------------------------------------------
500,000 Douglas County, NE Hospital Authority No. 02,
Revenue Bonds, 5.00%, 11/15/2000 (Catholic
Health Corp.)/(MBIA) AAA 513,890
---------------------------------------------
750,000 Douglas County, NE School District No. 17,
GO, 5.30%, 10/1/2007 A+ 776,603
---------------------------------------------
500,000 Douglas County, NE School District No. 17,
GO, 5.50%, 6/15/2004 (MBIA) AAA 514,405
---------------------------------------------
300,000 Douglas County, NE, GO, 4.95%, 7/1/2003 AA+ 310,977
---------------------------------------------
400,000 Douglas County, NE, Revenue Bonds, 4.75%,
5/1/2000 (Joslyn Museum)/(Norwest LOC) AA 405,968
---------------------------------------------
520,000 Gage County, NE School District No. 015, GO,
5.50%, 12/15/2009 (AMBAC) AAA 546,276
---------------------------------------------
500,000 Grand Island, NE, Revenue Bonds, 5.60%,
4/1/2006 A 536,265
---------------------------------------------
500,000 Grand Island, NE, Revenue Bonds, 5.75%,
4/1/2007 A 539,025
---------------------------------------------
200,000 Grand Island, NE, Revenue Bonds, 6.00%,
9/1/2000 /(Refunded) A+ 208,384
---------------------------------------------
500,000 Hall County, NE School District No. 2, GO,
4.70%, 12/1/2003 A1 510,040
---------------------------------------------
500,000 Hall County, NE School District No. 2, GO,
4.70%, 12/1/2005 A1 509,290
---------------------------------------------
400,000 Hall County, NE School District No. 2, GO,
5.00%, 8/15/2008 A1 408,792
---------------------------------------------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
NEBRASKA--CONTINUED
---------------------------------------------
$ 500,000 Hastings, NE, Revenue Bonds, 4.65%, 1/1/2004 A $ 509,970
---------------------------------------------
300,000 Hastings, NE, Revenue Bonds, 5.20%, 1/1/2000 A 307,182
---------------------------------------------
300,000 Kearney, NE, Revenue Bonds, 5.80%, 6/1/2002 A1 301,275
---------------------------------------------
1,000,000 Lancaster County, NE Hospital Authority No.
1, Revenue Bonds, 5.10%, 6/1/2010 (Bryan
Memorial Hospital Project) AAA 1,029,300
---------------------------------------------
250,000 Lancaster County, NE Hospital Authority No.
1, Revenue Bonds, 5.90%, 6/1/2000 (MBIA) AAA 261,008
---------------------------------------------
200,000 Lancaster County, NE Leasing Corp., Crossover
Refunding Revenue Bonds, 5.70%, 7/15/2002 AA+ 201,188
---------------------------------------------
2,000,000 Lancaster County, NE School District No. 001,
GO, 5.00%, 1/15/2009 AAA 2,070,380
---------------------------------------------
600,000 Lancaster County, NE School District No. 145
Waverly, GO, 5.70%, 12/1/2016 (AMBAC) AAA 623,484
---------------------------------------------
1,500,000 Lincoln, NE Electric Systems, 5.30%, 9/1/2009 AA 1,569,915
---------------------------------------------
400,000 Lincoln, NE Electric Systems, 5.40%, 9/1/2004
(Refunded) AA+ 428,340
---------------------------------------------
500,000 Lincoln, NE Electric Systems, 5.40%, 9/1/2010 AA 523,670
---------------------------------------------
300,000 Lincoln, NE Hospital, 5.60%, 12/1/2003 (FSA) AAA 324,306
---------------------------------------------
400,000 Lincoln, NE Waterworks, 4.80%, 8/15/2002 AA+ 412,800
---------------------------------------------
500,000 Lincoln, NE Waterworks, 5.30%, 8/15/2009 AA+ 523,185
---------------------------------------------
300,000 Lincoln, NE, GO, 4.50%, 9/1/1999 AAA 300,207
---------------------------------------------
200,000 Lincoln, NE, GO, 4.80%, 5/1/2003 AAA 200,240
---------------------------------------------
200,000 Lincoln, NE, GO, 5.30%, 12/15/2001 AAA 200,216
---------------------------------------------
500,000 Lincoln-Lancaster County, NE Public Building
Commission, 5.25%, 10/15/2008 AA+ 532,695
---------------------------------------------
250,000 Lincoln-Lancaster County, NE Public Building
Commission, 5.80%, 10/15/2018 AA+ 263,790
---------------------------------------------
400,000 Madison County, NE School District No. 2, GO,
5.10%, 6/1/2009 (AMBAC) AAA 407,444
---------------------------------------------
400,000 Municipal Energy Agency of Nebraska, 5.40%,
4/1/2003 (AMBAC) AAA 421,792
---------------------------------------------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
NEBRASKA--CONTINUED
---------------------------------------------
$ 500,000 Nebraska Educational Finance Authority,
Revenue Bonds, 5.60%, 11/1/2003 (Creighton
University Project)/(MBIA) AAA $ 511,845
---------------------------------------------
225,000 Nebraska Investment Finance Authority, 5.40%,
9/1/2003 AAA 235,647
---------------------------------------------
32,000 Nebraska Investment Finance Authority, 6.50%,
9/15/2014 (GNMA COL) AAA 32,046
---------------------------------------------
135,000 Nebraska Investment Finance Authority, 6.80%,
3/15/1999 (GNMA COL) AAA 138,357
---------------------------------------------
490,000 Nebraska Investment Finance Authority, 5.55%,
5/15/2003 (Great Plains Regional Medical
Center Project)/(Asset Guaranty) AA 520,669
---------------------------------------------
360,000 Nebraska Investment Finance Authority, 6.40%,
7/1/2005 A+ 390,996
---------------------------------------------
1,000,000 Nebraska Investment Finance Authority,
Revenue Bonds, 5.00%, 8/15/2011 (AMBAC) AAA 1,016,210
---------------------------------------------
500,000 Nebraska Public Power District, 4.80%,
1/1/2003 A+ 513,885
---------------------------------------------
200,000 Nebraska Public Power District, 5.40%,
1/1/2000 A+ 205,530
---------------------------------------------
225,000 Nebraska Public Power District, 6.00%,
1/1/2006 A+ 240,901
---------------------------------------------
300,000 Norris Public Power District, 4.85%, 1/1/2003 A 308,451
---------------------------------------------
300,000 Norris Public Power District, 5.20%, 1/1/1999 A 301,644
---------------------------------------------
540,000 Omaha, NE Airport Authority, 5.00%, 1/1/2008
(MBIA) AAA 560,687
---------------------------------------------
215,000 Omaha, NE Auditorium Facilities Corp., 4.55%,
8/15/2002 AA+ 219,702
---------------------------------------------
475,000 Omaha, NE Parking Facilities Corp., 5.20%,
9/15/2009 AA+ 500,042
---------------------------------------------
500,000 Omaha, NE Parking Facilities Corp., 5.70%,
9/15/2015 AA+ 530,595
---------------------------------------------
200,000 Omaha, NE Public Power District, Revenue
Bonds, 5.55%, 2/1/1999 AAA 203,568
---------------------------------------------
500,000 Omaha, NE Public Power District, Revenue
Bonds, 5.35%, 2/1/2001 Aa2 519,105
---------------------------------------------
490,000 Omaha, NE Public Power District, Revenue
Bonds, 4.20%, 2/1/2001 AA 493,518
---------------------------------------------
500,000 Omaha, NE Public Power District, Revenue
Bonds, 5.10%, 2/1/2003 AA 522,315
---------------------------------------------
405,000 Omaha, NE Riverfront Development Corp.,
Revenue Bonds, 4.60% 12/1/2004 (Douglas
County, NE GTD) AA+ 405,348
---------------------------------------------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
NEBRASKA--CONTINUED
---------------------------------------------
$ 500,000 Omaha, NE School District, GO, 4.85%,
6/15/2004 AAA $ 511,455
---------------------------------------------
500,000 Omaha, NE School District, GO, 5.35%,
6/15/2005 AAA 510,385
---------------------------------------------
700,000 Omaha, NE, GO, 5.25%, 12/1/2012 AAA 729,771
---------------------------------------------
500,000 Omaha, NE, GO, 6.10%, 9/1/2004 AAA 541,060
---------------------------------------------
510,000 Omaha, NE, Revenue Bonds, 5.20%, 1/15/2002 AA 531,379
---------------------------------------------
400,000 Omaha-Douglas County, NE Public Building
Commission, GO, 5.35%, 5/1/1999 AA 407,424
---------------------------------------------
500,000 Papillion La Vista, NE School District No.
027, GO, 4.60%, 11/1/2003 A+ 506,760
---------------------------------------------
500,000 University of Nebraska Facilities Corp.,
4.90%, 1/1/2003 (University of Nebraska
Medical Center Project) AA- 516,390
---------------------------------------------
700,000 University of Nebraska Facilities Corp.,
5.45%, 7/1/2008 (University of Nebraska
Medical Center Project) AA- 728,623
---------------------------------------------
1,200,000 University of Nebraska Facilities Corp.,
4.95%, 11/1/2009 (Mem. Stadium Project) AA- 1,229,172
---------------------------------------------
370,000 University of Nebraska, 4.60%, 5/15/2003 UNO
Std. Fee A+ 375,979
---------------------------------------------
330,000 University of Nebraska, 4.90%, 7/1/2005 UNL
Std. Fee A+ 340,296
---------------------------------------------
210,000 University of Nebraska, 4.90%, 7/1/2006 UNK
Std. Fee A 212,894
---------------------------------------------
275,000 University of Nebraska, 5.15%, 7/1/2009 UNK
Std. Fee A 278,704
---------------------------------------------
440,000 University of Nebraska, 5.00%, 6/1/2007
(Lincoln Parking Project) A- 454,766
---------------------------------------------
310,000 University of Nebraska, 5.40%, 6/1/2013
(Lincoln Parking Project) A- 318,413
--------------------------------------------- -----------
Total 37,295,876
--------------------------------------------- -----------
NEVADA--1.9%
---------------------------------------------
500,000 Clark County, NV School District, GO, 6.375%,
6/15/2005 (FGIC) AAA 563,530
---------------------------------------------
240,000 Nevada Housing Division, 5.60%, 10/1/2007 Aaa 253,008
---------------------------------------------
385,000 Nevada State, GO, 5.40%, 2/1/2008 AA 408,404
--------------------------------------------- -----------
Total 1,224,942
--------------------------------------------- -----------
NEW YORK--1.0%
---------------------------------------------
150,000 New York City, NY, GO, 7.25%, 10/1/2005
(Refunded) AAA 160,323
---------------------------------------------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
NEW YORK--CONTINUED
---------------------------------------------
$ 250,000 New York State Environmental Facilities
Corp., 6.20%, 6/15/2001 A $ 266,988
---------------------------------------------
250,000 Triborough Bridge & Tunnel Authority, NY,
5.55%, 1/1/2000 (FGIC) AAA 258,025
--------------------------------------------- -----------
Total 685,336
--------------------------------------------- -----------
OHIO--3.2%
---------------------------------------------
200,000 Columbus, OH City School District, GO, 6.95%,
2/1/2002 (Refunded) NR 214,596
---------------------------------------------
150,000 Columbus, OH, GO, 7.00%, 7/1/1999 (Refunded) Aaa 156,414
---------------------------------------------
500,000 Northeast OH Regional Sewer District, 5.10%,
11/15/2007 (AMBAC) AAA 528,250
---------------------------------------------
400,000 Ohio State, GO, 4.70%, 2/1/2002 AA+ 410,220
---------------------------------------------
500,000 Ohio State, GO, 4.85%, 8/1/2007 AA+ 519,935
---------------------------------------------
250,000 Ohio State, GO, 5.80%, 8/1/2001 AA+ 264,930
--------------------------------------------- -----------
Total 2,094,345
--------------------------------------------- -----------
OKLAHOMA--0.4%
---------------------------------------------
255,000 Oklahoma City, OK, GO, 4.20%, 7/1/2000
(Refunded) Aaa 257,229
--------------------------------------------- -----------
PUERTO RICO--0.8%
---------------------------------------------
500,000 Commonwealth of Puerto Rico, GO, 5.20%,
7/1/2006 (MBIA) AAA 533,775
--------------------------------------------- -----------
TEXAS--4.9%
---------------------------------------------
250,000 Austin, TX, GO, 7.30%, 9/1/1998 (Refunded) AA 254,755
---------------------------------------------
25,000 Birdville, TX ISD, GO, 4.25%, 2/15/2001 AAA 25,211
---------------------------------------------
475,000 Birdville, TX ISD, GO, 4.25%, 2/15/2001 AAA 478,615
---------------------------------------------
500,000 Fort Bend, TX ISD, GO, 5.50%, 2/15/2010
(PSFG) AAA 515,040
---------------------------------------------
300,000 Georgetown, TX , Revenue Bonds, 6.30%,
8/15/2000 (MBIA) AAA 316,974
---------------------------------------------
300,000 Houston, TX, ISD, GO, 5.40%, 8/15/2001 (PSFG) AAA 313,761
---------------------------------------------
300,000 Houston, TX, GO, 5.90%, 3/1/2003 AA- 319,557
---------------------------------------------
240,000 San Antonio, TX Water Authority, 5.90%,
5/15/2000 (FGIC) AAA 250,445
---------------------------------------------
300,000 San Antonio, TX, GO, 5.30%, 8/1/2003 AA 314,433
---------------------------------------------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
---------- --------------------------------------------- ------- -----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
--------------------------------------------------------
TEXAS--CONTINUED
---------------------------------------------
$ 380,000 Wylie, TX, ISD, GO, 6.20%, 8/15/2004 (PSFG) Aaa $ 422,188
--------------------------------------------- -----------
Total 3,210,979
--------------------------------------------- -----------
UTAH--1.6%
---------------------------------------------
500,000 Salt Lake City, UT School District, GO,
4.80%, 3/1/2008 Aaa 512,700
---------------------------------------------
500,000 Utah State University, 5.55%, 12/1/2005
(MBIA) AAA 536,295
--------------------------------------------- -----------
Total 1,048,995
--------------------------------------------- -----------
VIRGINIA--2.2%
---------------------------------------------
400,000 Fairfax County, VA, GO, 5.00%, 6/1/2002 AAA 412,972
---------------------------------------------
1,000,000 Roanoke, VA, GO, 5.00%, 8/1/2009 AA 1,038,680
--------------------------------------------- -----------
Total 1,451,652
--------------------------------------------- -----------
WASHINGTON--3.9%
---------------------------------------------
1,155,000 Seattle, WA Municipal Lighting & Power,
Revenue Bonds, 5.00%, 7/1/2008 AA 1,205,196
---------------------------------------------
250,000 Snohomish County, WA, 6.30%, 12/1/1999 (MBIA) AAA 260,915
---------------------------------------------
500,000 Washington State Health Care Facility
Authority, Revenue Bonds, 5.90%, 10/1/2003
(Sisters of Providence)/(FGIC) AAA 541,450
---------------------------------------------
250,000 Washington State, GO, 7.00%, 9/1/1998 AA+ 254,398
---------------------------------------------
300,000 Washington State, GO, 7.30%, 10/1/1998 AA+ 306,588
--------------------------------------------- -----------
Total 2,568,547
--------------------------------------------- -----------
WISCONSIN--2.9%
---------------------------------------------
500,000 Appleton, WI, Revenue Bonds, 5.35%, 1/1/2005 A1 516,425
---------------------------------------------
350,000 Milwaukee, WI, GO, 5.90%, 6/15/2004 AA+ 374,511
---------------------------------------------
500,000 Neenah, WI Joint School District, 5.20%,
3/1/2008 Aa 522,065
---------------------------------------------
500,000 Wisconsin State, GO, 5.00%, 5/1/2000 AA 511,215
--------------------------------------------- -----------
Total 1,924,216
--------------------------------------------- -----------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $60,854,764) 63,422,135
--------------------------------------------- -----------
</TABLE>
GREAT PLAINS TAX-FREE BOND FUND
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
SHARES RATING* VALUE
--------- ---------------------------------------------- ------- -----------
<C> <S> <C> <C>
MUTUAL FUNDS--2.8%
--------------------------------------------------------
1,862,310 Benchmark Tax Exempt Fund (AT NET ASSET VALUE) $ 1,862,310
---------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST
$62,717,074)(A) $65,284,445
---------------------------------------------- -----------
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $62,717,074.
The net unrealized appreciation of investments on a federal tax basis
amounts to $2,567,371 which is comprised of $2,567,382 appreciation and $11
depreciation at February 28, 1998.
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
Note: The categories of investments are shown as a percentage of net assets
($65,831,024) at February 28, 1998.
The following acronyms are used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation Asset Guaranty--Asset
Guaranty Reinsurance Company COL--Collateralized FGIC--Financial Guaranty
Insurance Company FSA--Financial Security Assurance GNMA--Government National
Mortgage Association GO--General Obligation GTD--Guaranty INS--Insured
ISD--Independent School District LOC--Letter of Credit MBIA--Municipal Bond
Investors Assurance PSFG--Permanent School Fund Guarantee REFUNDED--Secured by
U.S. Government Securities as Collateral Q-SBLF--Qualified State Bond Loan Fund
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS TAX-FREE BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------
Total investments in securities, at
value (identified and tax cost
$62,717,074) $65,284,445
- -------------------------------------
Income receivable 837,747
- ------------------------------------- -----------
Total assets 66,122,192
- -------------------------------------
LIABILITIES:
- ---------------------------
Income distribution payable $222,090
- ---------------------------
Accrued expenses 69,078
- --------------------------- --------
Total liabilities 291,168
- ------------------------------------- -----------
NET ASSETS for 6,526,232 shares $65,831,024
outstanding -----------
- -------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------
Paid in capital $63,230,141
- -------------------------------------
Net unrealized appreciation of
investments 2,567,371
- -------------------------------------
Accumulated net realized gain on 33,512
investments -----------
- -------------------------------------
Total Net Assets $65,831,024
- ------------------------------------- -----------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------
Net Asset Value Per Share
($65,831,024 / 6,526,232 shares $10.09
outstanding) -----------
- -------------------------------------
Offering Price Per Share (100/97.00 $10.40
of $10.09)* -----------
- -------------------------------------
Redemption Proceeds Per Share $10.09
- ------------------------------------- -----------
</TABLE>
*See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS TAX-FREE BOND FUND
STATEMENT OF OPERATIONS
PERIOD ENDED FEBRUARY 28, 1998 (UNAUDITED)(A)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ------------------------------------------------------------------
Interest $1,378,089
- ------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------
Investment advisory fee $134,308
- --------------------------------------------------------
Administrative personnel and services fee 37,789
- --------------------------------------------------------
Custodian fees 7,909
- --------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 9,986
- --------------------------------------------------------
Trustees' fees 2,035
- --------------------------------------------------------
Legal fees 2,081
- --------------------------------------------------------
Portfolio accounting fees 14,888
- --------------------------------------------------------
Share registration costs 13,887
- --------------------------------------------------------
Printing and postage 5,428
- --------------------------------------------------------
Insurance premiums 1,357
- --------------------------------------------------------
Miscellaneous 2,262
- -------------------------------------------------------- --------
Total expenses 231,930
- --------------------------------------------------------
Waivers and reimbursements--
- --------------------------------------------------------
Waiver of investment advisory fee (865)
- -------------------------------------------------------- --------
Net expenses 231,065
- ------------------------------------------------------------------ ----------
Net investment income 1,147,024
- ------------------------------------------------------------------ ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ------------------------------------------------------------------
Net realized gain on investments 43,875
- ------------------------------------------------------------------
Net change in unrealized appreciation of investments 2,567,371
- ------------------------------------------------------------------ ----------
Net realized and unrealized gain on investments 2,611,246
- ------------------------------------------------------------------ ----------
Change in net assets resulting from operations $3,758,270
- ------------------------------------------------------------------ ----------
</TABLE>
(a)For the period from September 29, 1997 (date of initial public investment) to
February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS TAX-FREE BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
FEBRUARY 28,
1998(A)
- ------------------------------------------------------------------- ------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------------
Net investment income $ 1,147,024
- -------------------------------------------------------------------
Net realized gain on investments ($43,875, net gain,
as computed for federal tax purposes) 43,875
- -------------------------------------------------------------------
Net change in unrealized appreciation 2,567,371
- ------------------------------------------------------------------- -----------
Change in net assets resulting from operations 3,758,270
----------------------------------------------------------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------------
Distributions from net investment income (1,147,024)
- -------------------------------------------------------------------
Distributions from net realized gains (10,363)
- ------------------------------------------------------------------- -----------
Change in net assets resulting from distributions to shareholders (1,157,387)
----------------------------------------------------------------- -----------
SHARE TRANSACTIONS--
- -------------------------------------------------------------------
Proceeds from sale of shares 65,972,475
- -------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 193
- -------------------------------------------------------------------
Cost of shares redeemed (2,742,527)
- ------------------------------------------------------------------- -----------
Change in net assets resulting from share transactions 63,230,141
----------------------------------------------------------------- -----------
Change in net assets 65,831,024
---------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------
Beginning of period --
- ------------------------------------------------------------------- -----------
End of period $65,831,024
- ------------------------------------------------------------------- -----------
</TABLE>
(a)For the period from September 29, 1997 (date of initial public investment) to
February 28, 1998.
(See Notes which are an integral part of the Financial Statements)
GREAT PLAINS FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998 (UNAUDITED)
- -------------------------------------------------------------------------------
1. ORGANIZATION
Great Plains Funds (the "Trust") is registered under the Investment Company Act
of 1940, as amended (the "Act"), as an open-end management investment company.
The Trust consists of five portfolios (individually referred to as the "Fund",
or collectively as the "Funds") which are presented herein:
<TABLE>
<CAPTION>
PORTFOLIO NAME DIVERSIFICATION INVESTMENT OBJECTIVE
- ---------------------------------------------------------------------------------
<C> <C> <S>
Great Plains Equity Fund Non-diversified To seek total return
("Equity Fund") (consisting of current
income and capital
appreciation) over the
long-term.
- ---------------------------------------------------------------------------------
Great Plains International Equity Fund Non-diversified To seek total return
("International Equity Fund")* (consisting of current
income and capital
appreciation) over the
long-term.
- ---------------------------------------------------------------------------------
Great Plains Premier Fund Non-diversified To seek total return
("Premier Fund") (consisting of current
income and capital
appreciation) over the
long-term.
- ---------------------------------------------------------------------------------
Great Plains Intermediate Bond Fund Diversified To seek total return
("Intermediate Bond Fund") (consisting of current
income and capital
appreciation).
- ---------------------------------------------------------------------------------
Great Plains Tax-Free Bond Fund Non-diversified To seek current income
("Tax-Free Fund") that is exempt from
federal regular income
tax and secondarily to
seek current income
that is also exempt
from the regular income
taxes imposed by the
State of Nebraska.
</TABLE>
*International Equity Fund was effective but had no public investment as of
February 28, 1998.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS--Municipal bonds are valued by an independent pricing
service, taking into consideration yield, liquidity, risk, credit quality,
coupon, maturity, type of issue, and any other factors or market data the
pricing service deems relevant. U.S. government securities, listed corporate
bonds, other fixed income and asset-backed securities, and unlisted securities
and private placement securities are generally valued at the mean of the
latest bid and asked price as furnished by an independent pricing service.
Listed equity securities are valued at the last sale
GREAT PLAINS FUNDS
- -------------------------------------------------------------------------------
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at the
time of purchase may be valued at amortized cost, which approximates fair
market value. Investments in other regulated investment companies are valued
at net asset value.
REPURCHASE AGREEMENTS--It is the policy of the Funds to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve
Book Entry System, or to have segregated within the custodian bank's vault,
all securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Funds to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of collateral at least equals the repurchase price to be
paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the "Trustees").
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized as
required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES--It is the Funds' policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on the settlement date.
USE OF ESTIMATES--The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results could differ
from those estimated.
OTHER--Investment transactions are accounted for on the trade date.
GREAT PLAINS FUNDS
- --------------------------------------------------------------------------------
3. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
EQUITY FUND
------------
PERIOD ENDED
FEBRUARY 28,
1998(A)
------------
SHARES
- ----------------------------------------------------------- ------------
<S> <C>
Shares sold 19,742,860
- -----------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 7,020
- -----------------------------------------------------------
Shares redeemed (1,016,450)
- ----------------------------------------------------------- ----------
Net change resulting from Equity Fund share transactions 18,733,430
--------------------------------------------------------- ----------
<CAPTION>
PREMIER
FUND
------------
PERIOD ENDED
FEBRUARY 28,
1998(A)
------------
SHARES
- ----------------------------------------------------------- ------------
<S> <C>
Shares sold 2,627,076
- -----------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 168
- -----------------------------------------------------------
Shares redeemed (137,503)
- ----------------------------------------------------------- ----------
Net change resulting from Premier Fund share transactions 2,489,741
--------------------------------------------------------- ----------
<CAPTION>
INTERMEDIATE
BOND FUND
------------
PERIOD ENDED
FEBRUARY 28,
1998(A)
------------
SHARES
- ----------------------------------------------------------- ------------
<S> <C>
Shares sold 14,141,078
- -----------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 105,544
- -----------------------------------------------------------
Shares redeemed (766,558)
- ----------------------------------------------------------- ----------
Net change resulting from Intermediate Bond Fund share 13,480,064
transactions ----------
---------------------------------------------------------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
GREAT PLAINS FUNDS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX-FREE
FUND
------------
PERIOD ENDED
FEBRUARY 28,
1998(A)
------------
SHARES
- ------------------------ ------------
<S> <C>
Shares sold 6,799,495
- ------------------------
Shares issued to
shareholders in payment
of distributions
declared 19
- ------------------------
Shares redeemed (273,282)
- ------------------------ ---------
Net change resulting
from Tax-Free Fund 6,526,232
share transactions ---------
----------------------
</TABLE>
(a) For the period from September 29, 1997 (date of initial public investment)
to February 28, 1998.
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--First Commerce Investors, Inc., the Funds' investment
adviser (the "Adviser") receives for its services an annual investment advisory
fee based on a percentage of each Fund's average daily net assets (see below).
<TABLE>
<CAPTION>
ANNUAL
FUND RATE
- ---------------------- ------
<S> <C>
Equity Fund 0.75%
- ----------------------
Premier Fund 1.00%
- ----------------------
Intermediate Bond Fund 0.50%
- ----------------------
Tax-Free Fund 0.50%
- ----------------------
</TABLE>
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser
can modify or terminate this voluntary waiver at any time at its sole
discretion.
ADMINISTRATIVE FEE--Federated Services Company ("FServ") provides the Funds with
certain administrative personnel and services. The fee paid to FServ is based on
the level of average aggregate daily net assets of the Trust for the period.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES--FServ, through its
subsidiary, Federated Shareholder Services Company ("FSSC") serves as transfer
and dividend disbursing agent for the Funds. The fee paid to FSSC is based on
the size, type, and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Funds' accounting records for
which it receives a fee. The fee is based on the level of each Fund's average
daily net assets for the period, plus out-of-pocket expenses.
GREAT PLAINS FUNDS
- -------------------------------------------------------------------------------
CUSTODIAN FEES--National Bank of Commerce is the Funds' custodian for which it
receives a fee. The fee is based upon, the market value of the Funds' securities
held in custody for the period, plus certain out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses were initially borne by FServ.
The Funds have agreed to reimburse FServ for the organizational expenses during
the five year period following each Fund's effective date. The organizational
expenses for each Fund are estimated as listed below:
<TABLE>
<CAPTION>
EXPENSES OF
ORGANIZING
FUND THE FUNDS
- ---------------------- -----------
<S> <C>
Equity Fund $7,350
- ----------------------
Premier Fund $1,750
- ----------------------
Intermediate Bond Fund $5,690
- ----------------------
Tax-Free Fund $4,910
- ----------------------
</TABLE>
INTERFUND TRANSACTIONS--During the period ended February 28, 1998, the Funds
engaged in purchase and sale transactions with funds that have a common
investment adviser (or affiliated investment advisers), common
Directors/Trustees, and/or common Officers. These purchase and sale transactions
were made at current market value pursuant to Rule 17a-7 under the Act and were
attributable to the conversion of assets of common and collective trust funds
into each of the funds. Interfund transactions were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---------------------- ------------ -----
<S> <C> <C>
Equity Fund $180,831,842 $--
- ----------------------
Premier Fund $ 20,989,011 $--
- ----------------------
Intermediate Bond Fund $123,275,272 $--
- ----------------------
Tax-Free Fund $ 61,435,262 $--
- ----------------------
</TABLE>
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
5. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term and conversion
securities, for the period ended February 28, 1998, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---------------------- ----------- -----------
<S> <C> <C>
Equity Fund $99,899,409 $21,519,976
- ----------------------
Premier Fund $24,806,179 $ 4,629,517
- ----------------------
Intermediate Bond Fund $63,574,747 $ 2,955,051
- ----------------------
Tax-Free Fund $ 4,678,310 $ 2,370,522
- ----------------------
</TABLE>
GREAT PLAINS FUNDS
- -------------------------------------------------------------------------------
6. CONCENTRATION OF CREDIT RISK
Since Tax-Free Fund invests a substantial portion of its assets in issuers
located in one state, it will be more susceptible to factors adversely affecting
issuers of that state than would be a comparable general tax-exempt mutual fund.
In order to reduce the credit risk associated with such factors, at February 28,
1998, 29.4% of the securities in the portfolio of investments were backed by
letters of credit or bond insurance of various financial institutions and
financial guaranty assurance agencies. The value of investments insured by or
supported (backed) by a letter of credit from any one institution or agency did
not exceed 10.0% of total investments.
H.Please delete the Funds' and Distributor's addresses on page 46 and replace
them with the following:
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-5829
Cusip 391163102 Cusip 391163201 Cusip 391163300 Cusip 391163409 Cusip 391163508
G02264-03 (4/98)
[RECYCLED LOGO]
GREAT PLAINS EQUITY FUND
GREAT PLAINS INTERNATIONAL EQUITY FUND
GREAT PLAINS PREMIER FUND
GREAT PLAINS INTERMEDIATE BOND FUND
GREAT PLAINS TAX-FREE BOND FUND
(Portfolios of Great Plains Funds)
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 18, 1997
A. Effective January 23, 1998, the contract between First Commerce Investors,
Inc. (the "Adviser") and Peter Kinney (the "Sub-Adviser") was terminated.
Accordingly, please delete all references to the Sub-Adviser.
B. Please delete the section entitled "Great Plains Funds Management" which
begins on page 13 and replace it with the following: GREAT PLAINS FUNDS
MANAGEMENT OFFICERS AND TRUSTEES
Officers and Trustees are listed with their addresses, principal occupations,
birthdates and present positions, including any affiliation with First Commerce
Investors, Inc., National Bank of Commerce, Federated Investors, Edgewood
Services, Inc., Federated Shareholder Services Company and Federated Services
Company.
Dr. Keith L. Broman*
3540 Calvert St.
Lincoln, NE 68506
Birthdate: July 13, 1922
Trustee
Professor Emeritus, University of Nebraska.
Hugh Hansen@
1325 Fall Creek Road
Lincoln, NE 68510
Birthdate: September 27, 1927
Trustee
Consultant, First Commerce Bancshares, Inc.; Formerly, President, COO and
Director, First Commerce Bancshares, Inc.; Formerly, Vice Chairman and Director,
National Bank of Commerce; Formerly, Chairman and Director, North Platte
National Bank; Formerly, Director, First National Bank, Kearney, NE, McCook, NE
and West Point, NE; Formerly, Director, First Commerce Mortgage Co.; Formerly,
Director, Overland National Bank; Formerly, Director, NBC Computer Services
Corporation.
<PAGE>
George E. Howard@+
3901 South 27th Street, #50
Lincoln, NE 68508
Birthdate: August 11, 1924
Trustee
Formerly, Chairman and CEO, Lincoln Mutual Life Insurance Company.
Dr. Martin A. Massengale+
220 Keim Hall
University of Nebraska-Lincoln
Lincoln, NE 68583-0953
Birthdate: October 25, 1933
Trustee
Distinguished Professor, President Emeritus, Director for Grassland Studies, and
Foundation, University of Nebraska; Director, IBP, Inc., America First Companies
LLC, and Woodmen Life and Accident Company.
Keith C. Mitchell
621 Rose Street
Lincoln, NE 68502
Birthdate: September 25, 1943
Trustee
Vice President and Chief Financial Officer, MDS-Harris; Financial Consultant;
General Partner, Deloitte & Touche LLP.
Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA
Birthdate: October 22, 1930
President
Vice Chairman, Treasurer, and Trustee, Federated Investors; Vice President,
Federated Advisers, Federated Management, Federated Research, Federated Research
Corp., Federated Global Research Corp. and Passport Research, Ltd.; Executive
Vice President and Director, Federated Securities Corp.; Trustee, Federated
Shareholder Services Company; Trustee or Director of certain investment
companies distributed, organized, or advised by Federated Investors and its
affiliates (Federated Funds); President, Executive Vice President and Treasurer
of some of the Federated Funds.
James Stuart, III
610 NBC Center
Lincoln, NE 68508
Birthdate: December 4, 1963
Vice President
Chairman and Chief Executive Officer, First Commerce Investors, Inc.; Chief
Investment Officer and Secretary, Stuart Global Investment Company, BVI; James
Stuart, III, Sole Proprietorship, Consultant; Stuart Investment Co., Executive
Vice President.
<PAGE>
Anne E. Hansen
610 NBC Center
Lincoln, NE 68508
Birthdate: October 3, 1960
Vice President
Vice President and Compliance Officer, First Commerce Investors, Inc.
C. Christine Thomson
Federated Investors Tower
Pittsburgh, PA 15222
Birthdate: September 1, 1957
Vice President and Treasurer
Victor R. Siclari
Federated Investors Tower
Pittsburgh, PA 15222
Birthdate: November 17, 1961
Secretary
Corporate Counsel and Vice President, Federated Services Company; formerly
Attorney, Morrison & Foerster (law firm).
* This Trustee is deemed to be an "interested person" as defined in the
Investment Company Act of 1940.
@ Member of the Executive Committee. The Executive Committee of the Board of
Trustees handles the responsibilities of the Board between meetings of the
Board.
+ Member of the Audit Committee.
C. Please insert the following as the second paragraph of the section entitled
"Fund Ownership" on page 15.
"As of April 6, 1998, the following shareholders of record owned 5% or
more of the outstanding shares of the Funds: Firlin and Company, c/o NBC
Trust Division, Lincoln, Nebraska, owned approximately 17,748,199 shares
(95.77%) of the Equity Fund; Firlin and Company, c/o NBC Trust Division,
Lincoln, Nebraska, owned approximately 2,256,300 shares (93.67%) of the
Premier Fund; Firlin and Company, c/o NBC Trust Division, Lincoln, Nebraska,
owned approximately 13,445,919 shares (98.30%) of the Intermediate Bond Fund;
and Firlin and Company, c/o NBC Trust Division, Lincoln, Nebraska, owned
approximately 6,258,337 shares (96.58%) of the Tax-Free Bond Fund
D. Please insert the following as the second paragraph of the section entitled
"Advisory Fees" on page 16.
"For the period from September 29, 1997, (date of initial public investment)
to February 28, 1998, the Adviser earned advisory fees of $570,053, $90,545,
$267,770, and $134,308, respectively, from the Equity Fund, the Premier Fund,
the Intermediate Bond Fund, and the Tax-Free Bond Fund, respectively, of
which $2,159, $18,320, $987, and $865, respectively, were waived."
E. Please insert the following as the second paragraph of the section entitled
"Sub-Advisory Fees" on page 16.
"For the period from September 29, 1997, (date of initial public investment)
to February 28, 1998, the Sub-Adviser earned advisory fees of $24,770 paid by
the Adviser under the sub-advisory agreement between the Adviser and the
Sub-Adviser, none of which were waived."
<PAGE>
F. Please delete the third sentence of the section entitled "Custodian" on page
16 and replace it with the following:
"The Bank's fees for custody services are based upon the market value of the
Funds' securities held in custody plus certain out-of-pocket expenses." G.
Please insert the following as the second paragraph of the section entitled
"Brokerage Transactions" which begins on page 16.
"For the period from September 29, 1997, (date of initial public investment)
to February 28, 1998, the Equity Fund, the Premier Fund, the Intermediate
Bond Fund, and the Tax-Free Bond Fund, respectively, paid total brokerage
commissions of $61,827, $17,565, $0, and $0, respectively."
H. Please insert the following as the second paragraph of the section entitled
"Administrative Arrangements" on page 17. "For the period from September 29,
1997, (date of initial public investment) to February 28, 1998, the Equity
Fund, the Premier Fund, the Intermediate Bond Fund, and the Tax-Free Bond
Fund, respectively, incurred $106,632, $12,691, $75,126, and $37,789,
respectively, in costs for administrative services, none of which were
waived."
I. Please delete the second paragraph of the section entitled "Total Return" on
page 20 and replace it with the following: "The Equity Fund's cumulative
total return for the period from September 29, 1997 (date of initial public
investment) to February 28, 1998, was 6.19%. The Premier Fund's cumulative
total return for the period from September 29, 1997 (date of initial public
investment) to February 28, 1998, was 0.50%. The Intermediate Bond Fund's
cumulative total return for the period from September 29, 1997 (date of
initial public investment) to February 28, 1998, was 1.05%. The Tax-Free Bond
Fund's cumulative total return for the period from September 29, 1997 (date
of initial public investment) to February 28, 1998, was (0.41)%. Cumulative
total return reflects a Fund's total performance over a specific period of
time. The Funds' total returns are representative of only five months of
investment activity."
J. Please insert the following as the third paragraph of the section entitled
"Yield" on page 20.
"The Equity Fund's yield for the thirty-day period ended February 28, 1998,
was 0.26%. The Premier Fund's yield for the thirty-day period ended February
28, 1998, was 0.43%. The Intermediate Bond Fund's yield for the thirty-day
period ended February 28, 1998, was 5.27%. The Tax-Free Bond Fund's yield for
the thirty-day period ended February 28, 1998, was 3.36%."
K. Please insert the following as the second paragraph of the section entitled
"Tax-Equivalent Yield" on page 21. "The Tax-Free Bond Fund's tax-equivalent
yield for the thirty-day period ended February 28, 1998, was 7.42%."
<PAGE>
L. Please delete the tax-equivalency table on page 21 and replace it with the
following:
TAXABLE YIELD EQUIVALENT FOR 1998
STATE OF NEBRASKA
COMBINED FEDERAL AND STATE INCOME TAX BRACKET:
20.01% 34.68% 37.68% 42.68% 46.28%
JOINT $1- $42,351- $102,301- $155,951- OVER
RETURN 42,350 102,300 155,950 278,450 $278,450
SINGLE $1- $25,351- $61,401- $128,101- OVER
RETURN 25,350 61,400 128,100 278,450 $278,450
TAX-EXEMPT
YIELD TAXABLE YIELD EQUIVALENT
2.00% 2.50% 3.06% 3.21% 3.49% 3.72%
2.50% 3.13% 3.83% 4.01% 4.36% 4.65%
3.00% 3.75% 4.59% 4.81% 5.23% 5.58%
3.50% 4.38% 5.36% 5.62% 6.11% 6.52%
4.00% 5.00% 6.12% 6.42% 6.98% 7.45%
4.50% 5.63% 6.89% 7.22% 7.85% 8.38%
5.00% 6.25% 7.65% 8.02% 8.72% 9.31%
5.50% 6.88% 8.42% 8.83% 9.60% 10.24%
6.00% 7.50% 9.19% 9.63% 10.47% 11.17%
6.50% 8.13% 9.95% 10.43% 11.34% 12.10%
Note: The maximum marginal tax rate for each bracket was used in
calculating the taxable yield equivalent. Furthermore, additional state
and local taxes paid on comparable taxable investments were not used to
increase federal deductions.
<PAGE>
M. Please delete the tax-equivalency table on page 22 and replace it with the
following:
TAXABLE YIELD EQUIVALENT FOR 1998
MULTISTATE MUNICIPAL FUND
FEDERAL INCOME TAX BRACKET:
15.00% 28.00% 31.00% 36.00% 39.60%
JOINT $1- $42,351- $102,301- $155,951- OVER
RETURN 42,350 102,300 155,950 278,450 $278,450
SINGLE $1- $25,351- $61,401- $128,101- OVER
RETURN 25,350 61,400 128,100 278,450 $278,450
Tax-Exempt
Yield Taxable Yield Equivalent
1.00% 1.18% 1.39% 1.45% 1.56% 1.66%
1.50% 1.76% 2.08% 2.17% 2.34% 2.48%
2.00% 2.35% 2.78% 2.90% 3.13% 3.31%
2.50% 2.94% 3.47% 3.62% 3.91% 4.14%
3.00% 3.53% 4.17% 4.35% 4.69% 4.97%
3.50% 4.12% 4.86% 5.07% 5.47% 5.79%
4.00% 4.71% 5.56% 5.80% 6.25% 6.62%
4.50% 5.29% 6.25% 6.52% 7.03% 7.45%
5.00% 5.88% 6.94% 7.25% 7.81% 8.28%
5.50% 6.47% 7.64% 7.97% 8.59% 9.11%
6.00% 7.06% 8.33% 8.70% 9.38% 9.93%
6.50% 7.65% 9.03% 9.42% 10.16% 10.76%
7.00% 8.24% 9.72% 10.14% 10.94% 11.59%
7.50% 8.82% 10.42% 10.87% 11.72% 12.42%
8.00% 9.41% 11.11% 11.59% 12.50% 13.25%
Note: The maximum marginal tax rate for each bracket was used in
calculating the taxable yield equivalent. Furthermore, additional state
and local taxes paid on comparable taxable investments were not used to
increase federal deductions. The chart above is for illustrative purposes
only. It is not an indicator of past or future performance of Fund shares.
*Some portion of the Tax-Free Bond Fund's income may be subject to the
federal alternative minimum tax and state and local income taxes.
<PAGE>
EDGEWOOD SERVICES, INC.
Distributor
Cusip 391163102 Cusip 391163201 Cusip 391163300 Cusip 391163409 Cusip 391163508
G02264-04 (4/98)
