VINTAGE MUTUAL FUNDS
ANNUAL REPORT TO SHAREHOLDERS
MARCH 31, 1998
<PAGE>
MESSAGE FROM THE PRESIDENT
VINTAGE MUTUAL FUNDS, INC.
Welcome All Shareholders:
Very simply, it was a year of breathtaking gains in the financial markets, and
of groundbreaking change for funds managed by Investors Management Group ("IMG")
of Des Moines, Iowa and AMCORE Capital Management of Rockford, Illinois. During
the period, we worked hard to merge the fund families -- and we're very pleased
to report that in February 1998, our efforts were successful.
THE CREATION OF THE VINTAGE MUTUAL FUNDS
On that date, the mutual funds managed by IMG and the AMCORE Vintage Mutual
Funds were combined to form a new fund family, the Vintage Mutual Funds, Inc.
This merger resulted from the acquisition of IMG by AMCORE Financial, Inc.
Today, IMG -- which also includes the investment professionals from AMCORE's
financial investment advisory subsidiary, AMCORE Capital Management - provides
advisory, accounting and administrative services to our new fund family.
LET ME TAKE A MOMENT . . .
. . . to introduce myself -- I am Dave Miles, the President of the Vintage
Mutual Funds. I also serve as a Senior Managing Director of IMG where I have
been responsible for directing the business side of the Liquid Assets Fund, the
Municipal Assets Fund, the IMG Mutual Funds and the Capital Value Funds. At
Vintage, I will be assuming responsibility for the execution of the policies
formulated by our Board of Directors.
A BROADER TALENT POOL AND MORE OPTIONS
The result of the integration of the fund families into one will be a family of
funds advised by a larger team of investment professionals. This will provide
our shareholders with a much broader array of investment options, as well as the
benefits of a larger pool of experience and expertise.
In terms of the day-to-day management of each fund, however, while much has
changed, much also stays the same. Former shareholders of the AMCORE Vintage
Funds, the Liquid Assets Fund, the Municipal Assets Fund and the IMG Bond Fund
will see little change in the management of their investment.
As of February 19, 1998, however, the IMG Core Stock Fund and the Capital Value
Equity Fund were merged with the Vintage Equity Fund; the Capital Value Total
Return Fund was merged with the Vintage Balanced Fund; and the Capital Value
Fixed Income Fund has been merged with the Vintage Bond Fund.
Finally, as a part of our restructuring, several of our Funds were renamed. The
Fixed Total Return Fund was renamed the Limited Term Bond Fund. The Intermediate
Tax Free Fund became the Municipal Bond Fund. The Fixed Income Fund is now the
Income Fund. And the U.S. Government Obligations Fund was renamed the Government
Assets Fund.
IN CLOSING . . .
As I said earlier, regardless of what Fund you were investing in prior to this
reorganization, you can rest assured that the team of investment professionals
from IMG and AMCORE still manage the Vintage Family. And our priorities have not
changed -- in fact, they are now clearer and stronger than ever. We remain
absolutely committed to helping you and all of our shareholders achieve your
investment objectives.
________________________________________________________________________________
THE VINTAGE MUTUAL FUNDS ARE DISTRIBUTED BY BISYS FUND SERVICES LIMITED
PARTNERSHIP.
SHARES OF THE VINTAGE MUTUAL FUNDS ARE NOT INSURED BY THE FDIC AND ARE NOT
DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, AMCORE FINANCIAL INC.,
ANY OF ITS SUBSIDIARIES OR AMCORE CAPITAL MANAGEMENT, INC. , OR INVESTORS
MANAGEMENT GROUP. INVESTMENT PRODUCTS INVOLVE INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL.
FOR MORE COMPLETE INFORMATION ON ANY OF THE VINTAGE MUTUAL FUNDS, INCLUDING
FEES, EXPENSES AND SALES CHARGES, PLEASE CALL 1-800-438-6375 FOR A FREE
PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY.
<PAGE>
We thank you for your continued confidence in us. We look forward to providing
you with excellent investment management and serving your needs now and in the
future. As always, if you would like a prospectus on any one or all of the
Vintage Funds, have any questions or require any assistance, please don't
hesitate to call us at 1-800- 438-6375.
Sincerely,
David W. Miles
President
<PAGE>
MESSAGE FROM THE INVESTMENT ADVISOR
VINTAGE MUTUAL FUNDS, INC.
Dear Shareholders:
As we go to press, the stock market has done what it has done with great
regularity over the course of the past year -- hit yet another all-time high.
Over the course of the first quarter alone, U.S. domestic stocks were up almost
13%. Over the course of the past year, the S&P 500 Index gained an astonishing
47%.
Of course, no gain comes without at least a little pain, and this one was no
exception. In October, investors were shaken by events in Asian markets -- and
the Dow Jones Industrial Average dropped some 554 points, the largest one day
fall in its history. But, within days, the market bounced back. With the economy
growing at a steady pace, and inflation under control, investors were in the
mood to accentuate the positive and ignore virtually everything else.
ROSE-COLORED GLASSES?
Yet, this enthusiasm for equities isn't necessarily misplaced. As the dust
settled, fears that the "Asian contagion" would spread subsided -- and as they
did, it was clear that many of the factors that underlay the bull market in
stocks were still in place. Prices in the U.S. rose at only a 1.6% rate in 1997
and were even lower in the first quarter. Inflation has been subsiding to levels
not seen persistently since the early 1970s. Growth of output in 1997 neared 4%
- - -- and supports continued robust earnings growth.
Of course, given the globalization of the world economy, it is clear that events
in Asia will impact our economy at some point. Looking ahead, the analyst
community now widely believes that economic growth in the U.S. will slow to
about 2%, approximately half of current levels, due to the collapse of key Asian
economies. Nonetheless, slower growth does not mean no growth. U.S. consumers --
who represent 2/3's of all consumption -- are still in a spending mood. Low
interest rates, too, continue to support the housing market.
DRUM-TIGHT LABOR MARKETS
But there are some clouds on the horizon -- and chief among them is a very tight
labor market. Wages in certain industries are rising at a fast clip -- and if
the economy doesn't slow, this trend could accelerate and spark inflation.
Whether slowing dampens economic growth enough to permit an easing of labor
conditions is an open question.
None of these conditions, of course, have escaped the bond market's notice. In
recent weeks, we've seen the descent of long-term rates halt and partially
reverse.
For stock investors, however, this is a minor worry when compared to the terror
experienced when Asian currencies collapsed last October. But initial fears of a
disaster of 1930s proportions have been calmed by the efforts of the
International Monetary Fund -- which is currently optimistic about the outlook
for Asia. Much remains to be done in these economies and political regimes over
the coming years, but most likely, the worst market reactions are now behind us.
WHAT'S NEXT?
Of course, no one can foretell the future -- and predictions are often futile,
if not downright arrogant. But a close examination of current conditions is of
value. First and foremost, low inflation, "not-too-fast" growth, and abated
Asian fears have conspired to return the markets to record levels. No less an
investor than Warren Buffet has observed that current valuation levels in the
stock market are in fact reasonable because of lower inflation levels. Moreover,
we could see surprises on the upside -- and should this happen, higher price
levels could be supported.
At the same time, however, there is reason for caution. Bonds may come under
pressure as continued growth facilitates wage gains. Consequently, any slowing
resulting from the turmoil in Asia would be positive. With regard to stocks, as
inflation fears and growth anxiety re-emerge and the next act in Asia begins,
the markets could be more volatile. While the fundamentals are indeed positive,
high valuations levels always carry the chance of a significant correction.
<PAGE>
Nonetheless, for patient stock investors, returns over the past three years have
been nothing short of spectacular. And, while comparably astounding gains are
unlikely in the near future, we believe that long-run prospects have never been
better.
Sincerely,
Jay H. Evans
Chief Investment Officer
Investors Management Group
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE MONEY MARKET FUNDS
The economy was strong, unemployment was low and consumer confidence was high
throughout much of the year ended March 31, 1998. But, contrary to historical
precedent, inflationary pressures did not increase. Instead, investors were
pleased to see, wholesale prices declined in the first half of the period.
Moreover, events in Asia also put downward pressure on rates -- with these
markets collapsing, our economy would be affected and growth would be slowed.
As 1998 began, however, market sentiment regarding the impact of the Asian
contagion shifted once again. The U.S. economy, investors gradually realized,
might not be impacted as dramatically or slow as significantly as first
believed. Interest rates in the money markets began edging upward.
THE GOVERNMENT ASSETS FUND
(Formerly the U.S. Government Obligations Fund)
Given the environment, we approached the marketplace cautiously throughout the
year ended March 31, 1998. Shortening and lengthening of maturities in the
portfolio was done only when attractive opportunities arose -- rather than in
response to any event. As a result, the average maturity of the Fund's holdings
ranged between 45-50 days throughout much of the period. Because we do expect
the markets to be more volatile, we do not expect to make any major change in
the Fund's maturity structure, allocation, or in our cautious approach to the
markets in the coming months.
THE LIQUID ASSET FUND
Invested in a variety of government guaranteed securities with short-term
maturities, the Fund performed well over the course of the year ended March 31,
1998. With the portfolio's average maturity hovering around 23 days, we were
able to move quickly and capitalize on attractive opportunities as they arose.
At the end of the period, the Fund's average maturity was still somewhat shorter
than industry averages -- well-positioned for rising rates and the more volatile
environment we expect to see in the months ahead.
THE MUNICIPAL ASSET FUND
Much like the municipal bond markets, the tax-free money markets were much
quieter than the taxable money markets during the year ended March 31, 1998.
Given the stable environment, we focused our efforts on yield enhancement and
invested in a mix of municipal securities with maturities ranging from 7 days to
one year out. The Fund's average maturity moved between 50-60 days throughout
the period. The average credit quality of all holdings was AA or better. As a
result, the Fund achieved its objective: producing a solid tax-free yield and
liquidity for its investors without taking unnecessary risk.
ALTHOUGH THE VINTAGE MONEY MARKET FUNDS SEEK TO MAINTAIN A STABLE NET ASSET
VALUE OF $1.00, THERE IS NO ASSURANCE THAT THEY WILL BE ABLE TO DO SO. THE
VINTAGE MONEY MARKET FUNDS ARE NEITHER INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
GOVERNMENT ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------ ----------- ----
U.S. GOVERNMENT AGENCY (67.3%):
Federal Farm Credit Bank:
$10,000,000 5.69%*, 04/09/98...........................$9,987,711
10,000,000 5.40%*, 04/14/98............................9,981,006
Federal Home Loan Bank:
10,000,000 5.46%*, 04/30/98............................9,957,306
10,000,000 5.40%*, 06/02/98............................9,910,100
5,000,000 5.70%, 03/17/99.............................4,998,127
Federal Home Loan Mortgage Assoc.:
10,000,000 5.56%*, 05/07/98............................9,945,500
10,000,000 5.55%*, 05/21/98............................9,924,583
10,000,000 5.57%*, 05/28/98............................9,914,025
Federal National Mortgage Assoc.:
10,000,000 5.46%*, 06/05/98............................9,904,305
10,000,000 5.55%*, 06/12/98............................9,892,000
5,000,000 5.71%, 06/23/98.............................4,999,545
5,000,000 5.75%, 06/30/98.............................4,998,807
------------
Total U.S. Government Agency................104,413,015
------------
REPURCHASE AGREEMENTS (33.1%):
Bear Stearns:
38,786,531 5.85%, 04/01/98
(Purchased on 03/31/98, proceeds
at maturity $38,792,834; Collateralized
by U.S. Treasuries,
03/31/00-11/15/27,
market value $39,589,107)..................38,786,531
Dean Witter:
12,529,600 5.75%, 04/01/98
(Purchased on 03/31/98, proceeds at
maturity $12,531,601; Collateralized
by $12,757,000 U.S. Treasuries,
04/02/98--05/12/20, market value
$12,780,740)...............................12,529,600
------------
Total Repurchase Agreements................ 51,316,131
------------
Total (Cost--$155,729,146)................$155,729,146
Other Assets & Liabilities (-0.4%)............(599,637)
------------
NET ASSETS................................$155,129,509
============
* Effective yield at date of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
LIQUID ASSETS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------ ----------- ----
U.S. GOVERNMENT AGENCY (22.7%):
Federal Farm Credit Bank:
$ 2,500,000 5.52%**, 05/18/98..........................$2,482,408
2,575,000 5.90%, 06/02/98.............................2,575,659
500,000 6.13%, 11/09/98...............................501,447
Federal Home Loan Bank:
1,000,000 5.79%, 10/23/98...............................999,742
Federal Home Loan Mortgage Assoc.:
2,000,000 5.84%, 04/08/98.............................2,000,070
2,000,000 5.50%**, 04/24/98...........................1,993,138
2,000,000 5.51%**, 06/18/98...........................1,976,860
2,000,000 5.56%**, 06/30/98...........................1,972,950
500,000 6.05%, 07/28/98...............................500,404
200,000 5.00%, 12/15/98...............................198,822
Federal National Mortgage Assoc.:
3,000,000 5.55%**, 05/26/98...........................2,975,204
2,864,000 5.51%**, 09/11/98...........................2,795,402
1,000,000 4.75%, 10/26/98...............................995,470
Student Loan Marketing Assoc.:
1,800,000 4.63%, 06/01/98.............................1,797,212
------------
Total U.S. Government Agency...............23,764,788
------------
Loan Certificates--FmHA Guaranteed Loan Certificates (8.5%):
8,898,304 6.25%*, 10/15/98 to 12/19/34................8,898,304
------------
Trust Certificates--U.S. Govt. Guaranteed Student Loans (34.8%):
36,500,000 5.94%***, 06/11/98 to 02/19/99.............36,500,000
------------
Repurchase Agreements (33.5%):
Merrill Lynch LMS:
25,000,000 5.92%, 04/01/98, (Purchased on
3/31/98, proceeds at maturity
$25,004,111; Collateralized by
$25,335,000 GNMA,
5.50%, 01/20/28, market value
$25,502,810)...............................25,000,000
Swiss Bank:
10,163,316 5.85%, 04/01/98, (Purchased on
03/31/98, proceeds at maturity
$10,164,968; Collateralized by
$10,346,688 Gov't. Agencies,
02/25/07--01/01/28, market value
$10,402,452)..............................$10,163,316
------------
Total Repurchase Agreements................35,163,316
------------
Total (Cost--$104,326,408)...............$104,326,408
Other Assets & Liabilities (0.5%).............517,660
------------
Net Assets...............................$104,844,068
============
* Interest rate fluctuates with prime rate. Put option subject no longer
than 7-day settlement.
** Effective yield at date of purchase.
*** Interest rate fluctuates with 3-month U.S. Treasury bill rate. Put option
subject to no longer than 7-day settlement.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL ASSETS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------ ----------- ----
INDUSTRIAL DEVELOPMENT BONDS (4.00%):
Iowa (4.00%)
$ 37,375 Iowa HFA (Gayman Project),
4.85%**, 08/15/99..............................$37,375
199,278 Iowa HFA (Starr-Terry Project),
5.35%**, 05/15/05..............................199,278
997,349 Sioux City, IA (Handy
Partnership), 4.85%**, 09/15/04................997,349
337,768 Vinton, IA (Twin City Concrete),
5.33%**, 06/15/02..............................337,768
------------
Total Industrial Development Bonds...........1,571,770
------------
VARIABLE RATE DEMAND OBLIGATIONS (61.30%):
Arizona (3.10%)
500,000 Phoenix, AZ IDR 7-Day,
3.75%**, 10/15/06..............................500,000
700,000 Apache Co, AZ IDA 7-Day,
3.75%**, 06/15/20..............................700,000
------------
1,200,000
------------
Delaware (3.80%)
1,500,000 Delaware St Econ Dev 7-Day,
3.70%**, 10/01/28............................1,500,000
------------
Florida (4.60%)
1,500,000 Manatee Co., FL PCR DTN,
3.85%*, 09/01/24.............................1,500,000
300,000 St. Lucie Co., FL PCR DTN,
3.85%*, 01/01/26...............................300,000
------------
1,800,000
------------
Illinois (6.10%)
1,300,000 Illinois HFA Rev 7-Day,
3.70%**, 12/01/14............................1,300,000
500,000 Illinois HFA Rev 7-Day,
3.70%**, 12/01/15..............................500,000
600,000 Illinois EFA Rev 7-Day,
3.75%**, 05/01/20..............................600,000
------------
2,400,000
------------
Indiana (1.30%)
500,000 Indianapolis, IN Rev 7-Day,
3.70%**, 12/01/15..............................500,000
------------
Kentucky (2.30%)
$900,000 Kentucky Dev Finance 7-Day,
3.70%**, 12/01/15..............................900,000
------------
Michigan (6.40%)
900,000 Dearborn, MI Econ Dev 7-Day,
3.75%**, 03/01/23..............................900,000
200,000 Grand Rapids, MI Water 7-Day,
3.50%**, 01/01/20..............................200,000
1,400,000 Michigan HFA Rev 7-Day,
3.70%**, 07/01/17............................1,400,000
------------
2,500,000
------------
Missouri (1.50%)
600,000 St. Charles Co., MO IDA 7-Day,
3.75%**, 12/01/07..............................600,000
------------
Oregon (4.10%)
1,600,000 Portland, OR PCR DTN,
3.75%*, 12/01/09.............................1,600,000
------------
Pennsylvania (1.30%)
500,000 Delaware City, PA DTN,
3.70%*, 12/01/15...............................500,000
------------
South Carolina (4.60%)
1,785,000 South Carolina, Econ Dev DTN,
3.75%*, 07/01/22.............................1,785,000
------------
Tennessee (9.80%)
300,000 Metro Govt Nashville, TN 7-Day,
3.65%**, 06/01/15..............................300,000
1,740,000 Metro Nashville Airport, TN DTN,
3.75%*, 10/01/12.............................1,740,000
1,800,000 Sullivan Co., TN PCR DTN,
3.75%*, 10/01/16.............................1,800,000
------------
3,840,000
------------
Texas (8.60%)
400,000 Grapevine, TX IDR Ser B1 DTN,
3.75%*, 12/01/24...............................400,000
300,000 Grapevine, TX IDR Ser B4 DTN,
3.75%*, 12/01/24...............................300,000
900,000 Harris Co., TX Ser 88A 7-Day,
3.80%**, 06/01/05..............................900,000
Percentages indicated are based on net assets of $39,116,414.
* Variable rate, put option subject to next business day settlement.
** Variable rate, put option subject to no longer than 7-day settlement.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------ ----------- ----
VARIABLE RATE DEMAND OBLIGATIONS (CONTINUED):
670,000 Lone Star, TX Airport Ser A4 DTN,
3.75%*, 12/01/14...............................670,000
300,000 Lone Star, TX Airport Ser B2 DTN,
3.75%*, 12/01/14...............................300,000
800,000 Lone Star, TX Airport Ser B5 DTN,
3.75%*, 12/01/14...............................800,000
------------
3,370,000
------------
Virginia (3.80%)
1,500,000 Hampton Roads, VA 7-Day,
3.60%**, 07/01/16............................1,500,000
------------
Total Variable Rate Demand
Obligations.................................23,995,000
------------
MUNICIPAL BONDS (34.00%):
Alaska (1.00%)
400,000 Anchorage, AK Series B,
7.40%, 08/01/98................................404,593
------------
Arizona (1.30%)
505,000 Maricopa Co., AZ SD #4, 6.00%,
07/01/98.......................................512,640
------------
Colorado (0.60%)
220,000 Boulder, CO, 9.00%, 09/01/98...................224,456
------------
Connecticut (0.70%)
160,000 Connecticut, State of, Ser A,
4.00%, 05/15/98................................160,018
100,000 Waterbury, CT Refunding, 4.40%,
04/15/98.......................................100,011
------------
260,029
------------
Florida (0.50%)
250,000 Dunedin, FL Hospital Rev., 4.00%*** ,
10/01/98.......................................189,794
------------
Georgia (0.50%)
200,000 DeKalb Co., GA School District,
4.25%, 07/01/98................................200,096
------------
Idaho (0.50%)
100,000 Coeur D Alene, ID Sewer Rev,
6.70%, 06/01/98................................101,414
100,000 Idaho State, Tax Antic. Notes,
4.63%, 06/30/98................................100,176
------------
201,590
------------
Illinois (3.00%)
315,000 Harvey, IL Adv Refunding, 8.40%,
06/01/98.......................................317,273
185,000 Homewood Flossmoor, IL Park Dist,
4.60% , 12/01/98...............................185,659
275,000 Illinois State Sales Tax Rev, 3.98%***,
06/15/98........................................90,249
130,000 Kane Co., IL Public Bldg Comm.,
4.20%, 12/01/98................................130,124
80,000 Lyons, IL Waterworks & Sewer,
4.50%, 05/01/98.................................80,025
185,000 Northern Illinois Univ Ctfs Partn,
4.00%, 04/01/98................................185,000
175,000 University of Illinois,
Auxiliary Fac., 4.00%, 10/01/98................175,000
------------
1,163,330
------------
Indiana (1.50%)
325,000 Evansville, IN Sewer Rev,
5.00%, 07/01/98................................325,785
250,000 Franklin Twp, IN School Bldg Corp,
4.60%, 07/01/98................................250,595
------------
576,380
------------
Iowa (1.10%)
250,000 Iowa City, IA, 4.63%, 06/01/98.................250,220
85,000 Polk Co., IA Gaming Rev,
7.00%, 04/15/98.................................85,096
95,000 Sidney, IA Community School Dist,
5.20%, 06/01/98.................................95,169
------------
430,485
------------
Kentucky (0.10%)
50,000 Jefferson Co., KY School Dist,
6.70%, 02/01/99.................................51,095
------------
Louisiana (0.50%)
100,000 Louisiana State, Series A,
8.00%, 05/01/98................................100,307
100,000 Louisiana State Gas Tax Rev,
7.00%, 11/15/98................................101,967
------------
202,274
------------
Percentages indicated are based on net assets of $39,116,414.
* Variable rate, put option subject to next business day settlement.
** Variable rate, put option subject to no longer than 7-day settlement.
*** Effective yield at date of purchase.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------ ----------- ----
MUNICIPAL BONDS(CONTINUED):
Maine (0.50%)
175,000 Maine Municipal Bond Bank,
7.45%, 11/01/98................................181,425
------------
Maryland (0.30%)
100,000 Washington Sub Sanitary Dist, MD,
3.75%, 06/01/98.................................99,919
------------
Michigan (3.40%)
400,000 Brighton, MI Area School District,
6.90%, 05/01/98................................408,910
250,000 Lenawee Co., MI Sewage Disposal,
8.00%, 05/01/98................................250,784
530,000 Northville, MI, Public Schools,
3.70%, 05/01/98................................529,889
140,000 Pewamo Westphalia, MI CSD,
6.50%, 05/01/98................................140,297
------------
1,329,880
------------
Minnesota (0.50%)
200,000 Minnesota State, Various Purpose,
6.50%, 08/01/98................................201,638
------------
Nevada (2.30%)
475,000 Nevada State, Municipal Proj R-5,
4.10%, 11/01/98................................475,534
425,000 Reno, NV, Rec Fac, Ser A, 4.00%,
08/01/98.......................................424,926
------------
900,460
------------
New York (0.60%)
95,000 Metro Transportation Auth, NY,
7.50%, 07/01/98.................................97,755
150,000 Onondaga Co., NY Series A,
8.50%, 10/01/98................................153,514
------------
251,269
------------
Ohio (0.90%)
290,000 Anna, OH Local School Dist,
3.65%, 12/01/98................................290,000
75,000 Ohio State, Highway, Ser S,
4.10%, 05/15/98.................................75,004
------------
365,004
------------
Oklahoma (1.80%)
290,000 Cleveland Co., OK Lease Rev,
3.90%, 06/01/98................................289,887
405,000 Tulsa, OK Metro Utility Auth,
4.90%, 08/01/98................................406,327
------------
696,214
------------
Pennsylvania (1.20%)
300,000 Crawford Co., PA Refunding,
5.80%, 06/01/98................................300,807
150,000 Swarthmore Boro Auth, PA,
7.38%, 09/15/98................................154,414
------------
455,221
------------
Puerto Rico (0.30%)
100,000 Puerto Rico Elec Power Auth,
PR 6.30%, 07/01/98.............................100,556
------------
South Carolina (1.70%)
670,000 Oconee Co., SC School Dist,
6.50%, 09/01/98................................677,785
------------
South Dakota (0.40%)
150,000 South Dakota Housing Dev Auth,
4.55%, 05/01/98................................150,090
------------
Texas (3.00%)
105,000 Austin, TX, 7.75%, 09/01/98....................106,603
100,000 Ellis Co., TX Health Facility,
8.00%, 05/15/98................................102,459
145,000 Ellis Co., TX Water Control,
7.40%, 07/01/98................................146,176
100,000 Fort Bend Co., TX MUD #28,
7.15%, 09/01/98................................101,256
115,000 Harris Co., TX Mun Util Dist,
6.90%, 06/01/98................................115,522
150,000 River Road, TX Ind. School District,
6.10%, 08/15/98................................151,150
240,000 San Antonio, TX, 7.00%, 08/01/98...............242,439
200,000 Tyler, TX Waterworks & Sewer,
7.20%, 09/01/98................................202,606
------------
1,168,211
------------
Percentages indicated are based on net assets of $39,116,414.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
------ ----------- ----
MUNICIPAL BONDS(CONTINUED):
Utah (1.80%)
100,000 Davis Co., UT School District,
6.75%, 06/01/98................................100,448
500,000 Utah State Board of Regents,
4.30%, 05/01/98................................500,097
100,000 Utah State Board of Regents,
4.95%, 05/01/98................................100,072
------------
700,617
------------
Washington (0.40%)
145,000 Kitsap Co., WA Public Trans.,
4.88%, 12/01/98................................145,775
------------
Wisconsin (2.70%)
120,000 Cudahy, WI, 3.90%, 09/01/98....................119,926
160,000 Mayville, WI Sewer System Rev,
4.90%, 05/01/98................................160,115
100,000 Milwaukee, WI Series BZ, 6.00%,
06/15/98.......................................100,420
150,000 Rock Co., WI Promissory Notes,
6.00%, 05/01/98................................150,215
135,000 Vilas Co., WI Promissory Notes,
4.70%, 12/01/98................................135,569
400,000 Winnebago Co., WI Promissory Notes,
4.30%, 04/01/98................................400,000
------------
1,066,245
------------
Wyoming (1.00%)
200,000 Wyoming, MI Public Schools,
5.50%, 05/01/98................................200,250
200,000 Wyoming State, General Fund,
4.50%, 06/26/98................................200,335
------------
400,585
------------
Total Municipal Bonds.......................13,307,656
------------
Total (Cost--$38,874,426)..................$38,874,426
Other Assets & Liabilities (0.7%)..............241,988
------------
Net Assets.................................$39,116,414
============
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE FIXED INCOME FUNDS
Despite a solid economy and a tight job market, evidence of inflation was in
short supply during the year ended March 31, 1998. Moreover, any fears that
economic growth would accelerate dramatically -- and spark inflation - were
dampened by events in Asia throughout the late summer and fall. All of this
contributed to the perception that our economy was in check. As a result,
interest rates moved lower and the bond markets rose as we moved forward into
1998.
But, as the new year dawned, it became apparent that the effects of Asia's
problems would be felt gradually rather than immediately. And in the very near
term, it was clear that our economy was perking along at a very strong pace
indeed. Consequently, market sentiment shifted again and rates began to edge
higher. Nevertheless, interest rates ended the year lower than they began it --
making the twelve months ended March 31, 1998 good ones overall for fixed income
investors.
The year ahead should also be a positive one. At the same time, however, there
is reason for caution. Wage pressures are increasing -- and clearly, the bond
markets have already priced in what may prove to be an overly optimistic
inflation outlook. Should we see more inflationary pressure than investors
currently anticipate, the reaction will be quick. So, while we are optimistic
about the markets prospects in the months ahead, we do believe that they may be
somewhat more volatile.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE LIMITED TERM BOND FUND
(Formerly the Fixed Total Return Fund)
With the Federal Reserve on hold and virtually non-existent inflation throughout
much of the year, interest rates drifted lower throughout much of the year ended
March 31, 1998. Moreover, because the drop was gradual, most fixed income
securities rose in value to a greater or lesser degree. As a result, we are
pleased to report that the Fund posted a total return of 8.51% for the twelve
months ended 3/31/98* (after expenses).
Performance slightly lagged industry benchmarks due to the previously announced
restructuring of the Fund in the first quarter of 1998. Throughout much of the
year, the average maturity of the portfolio ranged between 4.5 - 5 years. This
was moved to 3.8 years at the end of the period - and within the Fund's new
maturity guidelines of 1-4 years. In addition, assets were also reallocated.
Exposures in Treasuries, now relatively expensive, were reduced in favor of
various, well-structured mortgage securities. As a result of these changes, we
believe the Fund is well-positioned for the more volatile markets we see ahead,
and to capture any opportunities that might arise in the shorter end of the
yield curve.
As of March 31, 1998, approximately 49% of the Fund's assets were invested in
Treasury and agency securities, 16% in mortgage-related securities, 28% in
corporate bonds, and 3% in taxable municipals with the remaining 4% held in cash
and cash equivalents. The average credit quality of these holdings was AAA.**
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Lehman Brother Intermediate Government/Corp. Bond Aggregate Index and the
Merrill Lynch 1-5 Yr. U.S. Gov't/Corp. Index.
_________________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year (6/15/95) |
|________________________________________|
| |
| 3/31/98 3.31% 8.51% 5.36% |
|________________________________________|
*Aggregate Total Return
* PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF SHARES IN
THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
** THE COMPOSITION OF THE FUND'S PORTFOLIO IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE LIMITED TERM FUND IS MEASURED AGAINST THE LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX AND THE MERRILL LYNCH 1-5
YR. U.S. GOVERNMENT/CORP. INDEX. BOTH ARE UNMANAGED INDICIES GENERALLY
REPRESENTATIVE OF THE PERFORMANCE OF GOVERNMENT AND CORPORATE BONDS AND THE
LEHMAN INDEX HAVING MATURITIES OF 1-10 YEARS AND THE MERRILL LYNCH HAVING
MATURITIES OF 1-5 YEARS. THE INDICIES DO NOT REFLECT THE DEDUCTION OF EXPENSES
ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT FEES. THE FUND'S
PERFORMANCE REFLECTS THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
LIMITED TERM BOND FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COLLATERALIZED MORTGAGE OBLIGATIONS (15.79%):
Federal National Mortgage Assoc. 1997-72 VA:
929,337 7.00%, 10/18/02...............................$944,439
Federal Home Loan Mortgage Corp.:
2,000,000 6.50%, 03/15/07..............................2,012,500
2,000,000 6.50%, 09/15/06..............................2,005,620
FNR 1993-72G:
1,000,000 6.50%, 05/25/08..............................1,003,430
------------
Total Collateralized Mortgage
Obligations..................................5,965,989
------------
CORPORATE BONDS (27.67%):
Asset-Backed (5.32%)
2,000,000 Bear Asset Trust Securities Series
1997-1 A 6.67%, 06/15/03.....................2,010,655
814,662 Nations Credit Grantor Trust 97-1
6.75%, 08/15/13................................836,571
------------
2,847,226
------------
Banking (2.68%)
1,000,000 BankAmerica 6.25%, 05/30/01..................1,011,760
------------
Financial Services (5.31%)
1,000,000 Associates, 5.85%, 01/15/01....................994,790
1,000,000 Salomon Smith Barney
6.63%, 11/15/03..............................1,011,620
------------
2,006,410
------------
Finance Companies (2.65%)
1,000,000 Bear Stearns Corp., 7.34%,
12/19/06.....................................1,017,500
1,000,000 Beneficial Corp., 6.27%,
12/06/01.....................................1,000,180
------------
2,017,680
------------
Industrial Goods and Services (1.36%)
500,000 Cummins Engine, 6.75%, 02/15/27
Put 02/15/07 @100..............................512,805
------------
Pharmaceuticals (2.64%)
1,000,000 McKesson Corp. 144A, 6.30%,
03/01/05.......................................995,710
------------
Railroads (2.81%)
1,000,000 Norfolk Southern Railway Equipment Trust
7.75%, 08/15/02..............................1,060,870
------------
Total Corporate Bonds.......................10,452,461
------------
U.S. GOVERNMENT AGENCIES (21.56%):
Federal Home Loan Mortgage Corp. E 61274:
1,288,855 7.00%, 08/01/09,.............................1,316,114
Federal National Mortgage Assoc. Step Up:
1,000,000 8.63%, Callable 11/10/99.......................909,870
Federal National Mortgage Assoc.:
1,000,000 6.25%, 12/13/02..............................1,000,000
Federal National Mortgage Assoc. Strip P/O**:
1,000,000 7.91%, 8/10/04.................................923,280
Federal Farm Credit Banks Discount Note:
2,000,000 5.02%*, 04/1/98..............................2,000,000
Federal Home Loan Bank Discount Note:
2,000,000 5.50%*, 04/17/98.............................1,995,138
------------
Total U.S. Government Agencies...............8,144,402
------------
U.S. TREASURY NOTES (28.38%):
1,000,000 6.25%, 02/15/03..............................1,024,530
1,000,000 6.25%, 03/31/99..............................1,006,720
1,000,000 6.38%, 01/15/00..............................1,012,810
2,000,000 6.38%, 07/15/99..............................2,019,380
3,000,000 6.50%, 05/31/01..............................3,072,660
2,500,000 6.63%, 04/30/02..............................2,584,375
------------
Total U.S. Treasury Notes...................10,720,475
------------
* Effective yield at date of purchase.
** Principal only represents securities that entitle holders to receive
only principal payments on the underlying mortgages. The yield to
maturity of a principal only is sensitive to the rate of principal
payments on the underlying mortgages. A slow (rapid) rate of principal
repayments may have an adverse (positive) effect on yield to maturity.
Interest rate disclosed represents current yield at date of purchase.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
LIMITED TERM BOND FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
U.S. TAXABLE MUNICIPAL BONDS (2.66%):
State of Texas Veterans Housing Fund II-Series B-1:
6.73%, 06/01/21
1st Call Date 12/01/07 @ 101.50
2nd Call Date 12/01/08 @ 100.75
$1,000,000 3rd Call Date 12/01/09 @ 100.................1,003,000
------------
INVESTMENT COMPANIES (4.11%):
1,551,720 Government Assets Fund 4.85%.................1,551,720
------------
Total Investments in Securities (100.17%)
(Cost $37,563,104) (a).....................$37,838,047
Other Assets & Liabilities (-0.17%)............(61,398)
-------------
Net Assets 100.0%...........................$37,776,649
=============
(a) At March 31, 1998, the cost of securities for federal income tax purposes
was $37,619,198 and aggregate gross unrealized appreciation and
depreciation based on that cost was:
Unrealized Appreciation..................$ 274,738
Unrealized Depreciation..................$ (55,889)
----------
Net Unrealized Appreciation..............$ 218,849
==========
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE BOND FUND
Quick response to the changing environment was the key to the Fund's strong
performance over the twelve months ended March 31, 1998. Long-term interest
rates were above 7.00% at the beginning of the period and maturities were
lengthened. Then, as events in Asia unfolded in the fall and rates began moving
downward, maturities were shortened in response. Also, exposures in Treasury
securities were lowered in favor of mortgage-related products - with prepayment
risks already factored in by an apprehensive market, these securities, we felt,
offered solid value.
As a result of these adjustments, the portfolio produced a total return of
10.30%* (after expenses) for the eleven months ended March 31, 1998, just
slightly under its industry benchmark, which posted a gain of 10.34% over the
same period.
Looking ahead, we expect to capitalize on opportunities that arise and respond
to changes in the environment. For instance, should interest rates rise in the
months ahead, we would look to reduce our holdings in mortgage-related
securities in favor of Treasuries and lengthen maturities. Beyond such
adjustments, however, no major changes are anticipated.
As of March 31, 1998, approximately 41% of the Fund's assets were invested in
mortgage-related securities, 23% in corporate bonds, 23% in taxable municipals,
4% in treasury securities, and 9% in cash and cash equivalents. The average
maturity of the portfolio's holdings was 7.16 years; the average credit quality
was AA1.**
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Lehman Brothers Aggregate Index.
_________________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year (7/07/95) |
|________________________________________|
| |
| 3/31/98 4.39% 11.93% 7.05% |
|________________________________________|
*Aggregate Total Return
* PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF SHARES IN
THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
** THE COMPOSITION OF THE FUND'S PORTFOLIO IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE BOND FUND IS COMPARED TO THE LEHMAN BROTHERS
AGGREGATE INDEX, WHICH REPRESENTS THE PERFORMANCE OF OVERALL BOND MARKET. THE
INDEX IS UNMANAGED AND DOES NOT REFLECT THE DEDUCTION OF FEES ASSOCIATED WITH A
MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT AND FUND ACCOUNTING FEES. THE FUND'S
PERFORMANCE REFLECTS THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BOND FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
MORTGAGE-BACKED SECURITIES (41.15%):
Collateralized Mortgage Obligations (10.01%)
Chase Mortgage Finance Corp.
$ 48,555 5.75%, 04/25/09................................$48,205
Federal Home Loan Mortgage Corp. Series L Class 5
11,661 7.00%, 12/15/22.................................11,971
Federal Home Loan Mortgage Corp. 1504 B
100,000 7.00%, 12/15/22.................................98,491
Federal Home Loan Mortgage Corp. 91 Series 188 Class F
7,384 7.50%, 05/15/20..................................7,384
Federal National Mortgage Assoc. G93-9 Class D
21,169 6.00%, 04/25/13.................................21,088
Federal National Mortgage Assoc. 1991-137 G
43,879 8.30%, 6/25/20..................................43,975
Federal National Mortgage Assoc. 1991-174 K
55,823 7.00%, 04/25/06.................................56,195
Federal National Mortgage Assoc. 1992-212 Class C
62,860 5.50%, 11/25/99.................................62,484
General Electric Cap Mtge. Service
74,937 5.70%, 01/25/24.................................74,444
Residential Funding Mtge. Sec. I Ser. 1993-S7, Class A6
25,098 7.15%, 02/25/08.................................25,096
Resolution Trust Corp. Series 1992-17, Class A1
10,293 Variable Rate, 8.91%*, 02/25/08.................10,258
Salomon Mortgage Sec. VII, 1995-1 P/O
322,710 10.54%**, 02/25/25.............................225,720
Standard Credit Card Master Trust, 1995-6 A
37,000 6.75%, 06/07/00.................................37,057
------------
Total Collateralized Mortgage
Obligations....................................722,368
------------
Federal Home Loan Mortgage-Backed Pools (1.37%)
95,218 #C00126, 8.50%, 06/01/22........................99,113
------------
FNMA Mortgage-Backed Pools (6.06%)
432,830 #251286, 7.00%, 10/01/27.......................437,011
------------
GNMA Mortgage-Backed Pools (23.71%)
26,586 #315929, 9.00%, 06/15/22........................28,447
45,073 #341681, 8.50%, 01/15/23........................47,393
43,131 #354189, 7.50%, 05/01/23........................44,200
84,200 #359600, 7.50%, 07/15/23........................86,272
222,904 #376218, 7.50%, 08/15/25.......................228,523
160,996 #385300, 8.00%, 10/15/24.......................166,542
168,781 #410049, 8.00%, 07/15/25.......................174,605
446,786 #412334, 7.00%, 10/15/27.......................451,111
471,808 #780619, 7.00%, 08/15/12.......................482,947
------------
Total GNMA Mortgage-Backed Pools 1,710,040
------------
Total Mortgage-Backed Securities 2,968,532
------------
U.S. TREASURY BONDS (4.34%):
275,000 7.25%, 05/15/16................................313,123
------------
OTHER BONDS (23.43%):
Utilities (1.08%)
75,000 Citizens Utility Co. 6.80%, 08/15/26
Put 08/15/03 @100...............................78,094
------------
Industrial (4.61%)
75,000 Dayton Hudson, 10.00%, 12/01/00.................81,938
250,000 WMX Technologies, 6.65%, 05/15/05
Put 05/15/00 @100..............................250,312
------------
332,250
------------
Finance (8.55%)
250,000 GMAC, 8.88%, 06/01/10..........................298,124
130,000 Hubco, Inc., 7.75%, 01/15/04...................134,713
165,000 Lehman Brothers MTN, 8.05%,
01/15/19.......................................183,563
------------
616,400
------------
International (9.20%)
425,000 Naples, City of, Italy, 7.52%,
07/15/06.......................................443,173
185,000 Nova Scotia, 8.25%, 11/15/19...................220,381
------------
663,554
------------
Total Other Bonds............................1,690,298
------------
* Variable rate security, interest rate is as of March 31, 1998.
** Principal only represents securities that entitle holders to receive
only principal payments on the underlying mortgages. The yield to
maturity of a principal only is sensitive to the rate of principal
payments on the underlying mortgages. A slow (rapid) rate of principal
repayments may have an adverse (positive) effect on yield to maturity.
Interest rate disclosed represents current yield at date of purchase.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BOND FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
U.S. TAXABLE MUNICIPAL BONDS (22.83%):
230,000 Berry Creek Met Dist, Co., 7.05%,
12/01/03 Call 12/01/02 @100....................231,436
125,000 Fulton, MO Import Taxable Sinking Fund
Sinking Fund Begins 07/01/08
7.50%, 06/01/05................................133,594
120,000 Manteca, Ca. Financial Authority
6.63%, 09/15/99................................120,900
155,000 New Orleans, La Hsg. Dev., 8.00%,
12/01/03.......................................160,231
154,093 Oregon Department of Transportation
9.00%, 06/15/00................................157,967
175,000 Portland, Or, 7.63%, 12/01/01..................177,625
90,000 Prairie Du Chien, WI, Redevelopment Auth.
7.60%, 04/01/05.................................94,275
100,000 Prairie Du Chien, WI, Redevelopment Auth
7.63%, 04/01/06................................104,000
150,000 St. Paul, MN Port Authority, 6.65%,
09/01/99.......................................151,313
125,000 Texas St. G.O. Taxable, 8.70%,
12/01/09.......................................143,125
165,000 Washington St. Housing, 7.65%,
01/01/04.......................................172,631
------------
Total U.S. Taxable Municipal Bonds...........1,647,097
------------
COMMERCIAL PAPER (8.66%):
300,000 Merrill Lynch, 5.73%*, 04/06/98................299,762
325,000 Parker Hallifan, 6.05%*, 04/01/98..............325,000
------------
Total Commercial Paper....................... 624,762
------------
INVESTMENT COMPANIES (0.16%):
11,589 Government Assets Fund, 4.85%...................11,589
------------
Total Investments in Securities (100.59%)
(Cost $7,080,240) (a).......................$7,255,401
Other Assets & Liabilities (-0.59%)............(42,205)
-------------
Net Assets 100.0%............................$7,213,196
=============
(a) At March 31, 1998, cost for federal income tax purposes differs from
market value by net unrealized appreciation of securities as follows:
Unrealized Appreciation................$ 213,196
Unrealized Depreciation................$ (38,035)
----------
Net Unrealized Appreciation............$ 175,161
==========
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE INCOME FUND
(Formerly the Fixed Income Fund)
The year ended March 31, 1998 was a good one for the Fund's investors. For the
period, the Fund posted a total return of 9.31%* (after expenses), a number in
line with the industry benchmark which gained 9.67% over the same period. This
strong performance was due primarily to strong security selection and an
emphasis on yield enhancement throughout the period.
To this end, as rates increased in the latter half of the period, we reduced
Treasury and agency exposures in favor of increasing positions in
mortgage-backed and taxable municipal securities. With any increase in interest
rates in the months ahead, we would expect prepayment risks to diminish -- and
make mortgage-backed securities an attractive investment. Consequently, moving
forward, we may seek to increase our holdings in the sector further. Other than
this, few changes in the portfolio are currently anticipated.
As of March 31, 1998, approximately 25% of the Fund's assets were invested in
mortgage-related securities, 34% in treasuries and agencies, 31% in corporate
bonds and 6% in taxable municipal securities, with the remainder held in cash
and cash equivalents. The average maturity of the Fund's holdings was 4.8 years,
and the average credit quality AAA.**
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Lehman Brothers Intermediate Government/Corp. Bond Index and in the
Lehman Brothers Aggregate Index.
_________________________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year 5 Year (12/15/92) |
|_________________________________________________|
| |
| 3/31/98 3.58% 5.27% 5.27% 5.96% |
|_________________________________________________|
*Aggregate Total Return
* PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF SHARES IN
THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
** THE COMPOSITION OF THE FUND'S PORTFOLIO IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE INCOME FUND IS MEASURED AGAINST THE LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX, AND AGGREGATE INDEX. THE
GOVERNMENT/CORPORATE BOND INDEX IS AN UNMANAGED INDEX GENERALLY REPRESENTATIVE
OF THE PERFORMANCE OF INTERMEDIATE-TERM GOVERNMENT AND CORPORATE BONDS WITH
MATURITIES OF 1-10 YEARS. THE AGGREGATE INDEX REPRESENTS THE PERFORMANCE OF THE
OVERALL BOND MARKET. THE INDICIES DO NOT REFLECT THE DEDUCTIONS OF EXPENSES
ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT FEES. THE FUND'S
PERFORMANCE REFLECTS THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
U.S. TREASURY NOTES (24.34%):
$4,000,000 5.88%, 11/15/05.............................$4,032,480
2,000,000 6.13%, 09/30/00..............................2,023,120
4,000,000 6.25%, 02/15/03..............................4,098,120
1,000,000 6.25%, 03/31/99..............................1,006,720
1,500,000 6.25%, 05/31/00..............................1,519,215
3,500,000 6.38%, 01/15/00..............................3,544,835
3,000,000 6.50%, 05/15/05..............................3,133,110
1,000,000 6.63%, 04/30/02..............................1,033,750
3,000,000 6.75%, 06/30/99..............................3,041,250
1,000,000 6.88%, 08/31/99..............................1,017,030
1,000,000 7.13%, 10/15/98..............................1,008,590
------------
Total U.S. Treasury Notes...................25,458,220
------------
U.S. TREASURY BONDS (3.31%):
3,000,000 7.25%, 8/15/22...............................3,465,480
------------
U.S. GOVERNMENT AGENCIES (6.50%):
Federal National Conventional Loan Pool #303971
1,670,250 7.50%, 07/01/16..............................1,727,039
Federal National Mortgage Assoc.
2,000,000 6.83%, 04/02/03, Callable
04/02/99 @100................................2,010,660
2,000,000 7.33%, 06/19/07, Callable
06/19/07 @100................................2,039,680
1,000,000 8.00%, 06/21/06..............................1,023,910
------------
Total U.S. Government Agencies...............6,801,289
------------
MORTGAGE-BACKED SECURITIES (24.95%):
Collateralized Mortgage Obligations (11.04%)
Federal Home Loan Mortgage Corp.
2,000,000 Series 1873 D, 7.00%, 04/15/09...............2,042,646
2,465,015 7.59%, 01/25/02,
1% Clean Up Feature..........................2,552,116
Federal National Mortgage Assoc.
1,435,090 Remic 1992-141 G, 7.00%,
08/25/06.....................................1,439,123
723,713 Remic 1992 171 PE, 6.60%,
04/25/17.......................................724,386
Prudential Home Mortgage Securities
2,914,782 7.15%, 03/25/24..............................2,932,066
Ryland Mortgage Securities Corp.
1,828,232 1993-4 A5, 7.50%, 08/25/24...................1,855,070
------------
Total Collateralized Mortgage
Obligations.................................11,545,407
------------
Federal Home Loan Mortgage Corp.
Mortgage-Backed Pools (2.32%)
2,400,000 #C00592, 7.00%, 03/01/28.....................2,427,168
------------
GNMA Mortgage-Backed Pools (11.59%)
2,362,804 7.50%, 10/15/27..............................2,423,386
2,428,966 7.50%, 09/15/27..............................2,491,245
2,495,456 7.00%, 02/15/28..............................2,522,831
2,394,312 6.50%, 02/15/28..............................2,371,566
2,294,381 7.00%, 06/15/27..............................2,319,550
------------
Total GNMA Mortgage-Backed Pools............12,128,578
------------
Total Mortgage-Backed Securities............26,101,153
------------
U.S. TAXABLE MUNICIPAL BONDS (6.47%):
1,000,000 Detroit Michigan Building Authority
6.60%, 07/01/03..............................1,025,660
1,000,000 Las Vegas NV, 7.20%, 07/01/15..............1,034,530
3,640,000 State of Texas Veterans Housing
Fund II-Series B-1
6.73%, 06/01/21, 1st Call Date
12/01/07 @ 101.50
2nd Call Date 12/01/08 @ 100.75
3rd Call Date 12/01/09 @ 100.................3,650,920
1,000,000 Wisconsin Housing, 7.98%, 03/01/21
Callable 03/01/07 @ 102
2nd Call Date 03/01/09 @ 100.................1,054,700
------------
Total U.S. Taxable Municipal Bonds...........6,765,810
------------
CORPORATE BONDS (30.61%):
Asset-Backed (9.39%)
2,000,000 Bear Asset Trust Securities Series
1997-1 A 6.67%, 06/15/03.....................2,010,655
2,000,000 GreenTree
96-F A4, 7.30%, 01/15/28.....................2,076,945
2,000,000 IMC Home Equity Loan
1996-4 A4, 7.30%, 08/25/14...................2,046,440
1,629,325 Nations Credit Grantor Trust 97-1
6.75%, 08/15/13..............................1,673,142
2,000,000 Olympic Auto
96-D A5, 6.25%, 11/15/04.....................2,014,880
------------
Total Asset-Backed...........................9,822,062
------------
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
INCOME FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
Banking (2.56%)
1,000,000 First Union Corp., 7.05%, 08/01/05...........1,036,480
1,000,000 NationsBank Corp., 8.50%,
01/15/07.....................................1,132,670
500,000 Northern Trust Co., 6.50%,
05/01/03.......................................505,065
------------
Total Banking................................2,674,215
------------
Electric Utility (0.98%)
1,000,000 Florida Power & Light, 6.88%, 04/01/04
Callable With 30 Days Notice.................1,021,280
------------
Financial Services (10.77%)
1,000,000 Commercial Credit, 6.88%, 05/01/02...........1,018,940
500,000 Ford Motor Credit, 7.50%, 01/27/03.............525,425
3,000,000 General Electric Capital, 8.50%,
07/24/08.....................................3,507,330
1,000,000 John Deere Cap., 5.85%, 01/15/01...............996,430
2,000,000 Norwest Financial, Inc., 7.20%,
05/01/07.....................................2,102,260
1,000,000 Norwest Financial, Inc., 7.50%,
04/05/95.....................................1,069,420
1,000,000 Salomon Smith Barney, 6.88%,
06/15/05.....................................1,028,410
1,000,000 Travelers Property Casualty
6.75%, 04/15/01..............................1,014,840
------------
Total Financial Services....................11,263,055
------------
Finance Companies (0.95%)
1,000,000 Bear Stearns Corp., 7.34%,
12/19/06.......................................993,750
------------
Restaurants (0.22%)
204,444 Secured Restaurant Trust, 10.25%,
11/15/00.......................................224,911
------------
Retail Stores (3.55%)
3,000,000 J.C. Penney & Co., 7.38%, 08/15/08...........3,208,530
500,000 Sears Roebuck & Co., 8.02%, 12/28/98...........507,385
------------
Total Retail Stores..........................3,715,915
------------
Telecommunications (2.20%)
250,000 AT&T Corp., 8.20%, 02/15/05....................256,830
1,000,000 GTE Florida, Inc., 6.25%, 11/15/05.............995,970
1,000,000 United Telephone Co. of Florida
7.25%, 12/15/04..............................1,046,330
------------
Total Telecommunications.....................2,299,130
------------
Total Corporate Bonds.......................32,014,318
------------
Medium Term Notes (0.96%):
1,000,000 Newell Co., 6.40%, 06/10/02..................1,003,970
------------
Investment Companies (2.16%):
2,258,708 Government Assets Fund 4.85%.................2,258,708
------------
Total Investments in Securities (99.30%)
(Cost $102,478,692) (a)...................$103,868,948
Other Assets & Liabilities (0.70%).............735,146
------------
Net Assets 100.0%.........................$104,604,094
============
(a) At March 31, 1998, the cost of securities for federal income tax
purposes was $102,511,320 and aggregate gross unrealized appreciation
and depreciation based on that cost was:
Unrealized Appreciation..................$1,504,517
Unrealized Depreciation..................$ (146,889)
----------
Net Unrealized Appreciation..............$1,357,628
==========
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE MUNICIPAL BOND FUND
(Formerly the Intermediate Tax-Free Fund)
Excitement was in short supply in the municipal markets during much of the year
ended March 31, 1998. As interest rates moved down, supply increased -- which
gave us, and all other investors, greater flexibility in the selection of
securities. But, even with this, the tax-free markets did not respond as rapidly
or dramatically to changes in the environment over the course of the year as the
taxable markets.
We, however, did take advantage of the situation to eliminate positions with
unfavorable call features. Moreover, when opportunities arose to buy well-
structured securities with longer maturities and favorable call features, we
seized them. As a result of such moves and the higher yields afforded by the
increase in rates, the Fund produced a total return of 7.89% (after expenses)
for the year ended March 31, 1998.*
In the months ahead, we do not expect the level of activity in the muni markets
to escalate as dramatically as it may in the taxable markets. In short, taxpayer
resistance to new issues is still very high -- and any increase in rates is sure
to dampen politicians' enthusiasm for new issues.
As of March 31, 1998, the portfolio was widely diversified with holdings in over
24 different states. As of the same date, the average maturity of the Fund's
holdings was 8 years; the average credit quality was AA1.**
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Merrill Lynch Intermediate Municipal Bond Index.
_________________________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year 5 Year (2/16/93) |
|_________________________________________________|
| |
| 3/31/98 2.68% 7.89% 4.99% 5.36% |
|_________________________________________________|
*Aggregate Total Return
* PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF SHARES
IN THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
** THE COMPOSITION OF THE FUND'S PORTFOLIO IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE MUNICIPAL BOND FUND IS MEASURED AGAINST THE
MERRILL LYNCH INTERMEDIATE MUNICIPAL BOND INDEX, AN UNMANAGED INDEX GENERALLY
REPRESENTATIVE OF THE PERFORMANCE OF MUNICIPAL BONDS WITH MATURITIES OF 1-20
YEARS. THE INDEX DOES NOT REFLECT THE DEDUCTION OF EXPENSES ASSOCIATED WITH A
MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT FEES. THE FUND'S PERFORMANCE REFLECTS
THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
U.S. GOVERNMENT AGENCIES (4.14%):
$2,000,000 Federal Home Loan Bank
Discount Note, 5.50%*, 04/07/98.............$1,998,193
------------
MUNICIPAL BONDS (83.31%):
Arizona (2.10%)
1,000,000 Phoenix AZ, G.O., 5.00%, 07/01/10,
Callable 07/01/08 @ 101, Callable
07/01/09 @ 100...............................1,012,810
------------
Delaware (1.07%)
500,000 Sussex County, DE, 4.90%, 10/15/01,
Callable 04/15/00 @ 100........................512,610
------------
Florida (4.30%)
500,000 Florida School Boards Assoc., Inc.
Lease Revenue Bonds, 6.75%, 07/01/04,
Callable 07/01/00 .............................530,260
500,000 Jacksonville, FL Electric Authority
Revenue Bonds, 5.13%, 10/01/07,
Callable 10/01/02 @ 101, Callable
10/01/03 @ 100.................................524,550
500,000 Martin County, FL, General Obligation,
4.25%, 02/01/01................................516,305
500,000 State of Florida Board of Education,
5.13%, 06/01/05................................503,385
------------
2,074,500
------------
Georgia (2.15%)
1,000,000 Atlanta, GA, Public Improvement -
Series B, 5.00%, 12/01/07, Call 12/01/06
@ 100........................................1,036,950
------------
Idaho (1.08%)
500,000 Meridian Joint School District, #2 Idaho,
5.00%, 07/30/03................................520,360
------------
Illinois (14.50%)
200,000 Cherry Valley General Obligations,
6.60%, 01/01/01................................212,540
500,000 Chicago, IL, Metropolitan Water, 5.25%,
12/01/04.......................................518,050
500,000 Chicago, IL, Metropolitan Water Capital
Improvement, 5.00%, 12/01/02...................527,545
465,000 Illinois Housing Development Authority
Single Family Mortgage Revenue, 6.50%,
02/01/09.......................................501,712
1,000,000 Illinois State Sales Tax Revenue, 5.00%,
06/15/09.....................................1,029,350
500,000 Kane County, IL Motor Fuel Transport
Revenue, 5.40%, 03/01/06.......................523,550
1,000,000 Kendall & Kane Counties, IL CSD #115
Yorkville, 5.65%, 01/01/08, Callable
01/01/07 @ 100...............................1,071,880
1,000,000 Macon County and Decatur IL, CTF Partn.,
6.50%, 01/01/04..............................1,109,330
300,000 Metropolitan Pier & Exposition
Authority Illinois, 5.20%, 06/15/99............304,854
400,000 Rockford School District Number 205,
Winnebago and Boone Counties, IL,
School Bonds, Series 1992-C, 5.25%,
02/01/01.......................................423,444
250,000 Sangamon County, IL Certificate
Participation, 6.40%, 12/01/00.................262,625
500,000 Winnebago County, IL, School District
122, 5.75%, 06/01/01...........................516,245
------------
7,001,125
------------
Indiana (11.85%)
1,000,000 Carmel, IN, Redevelopment Authority
County Option, 5.25%, 07/01/12...............1,014,970
1,000,000 Evansville, IN, Building Authority,
5.30%, 08/01/08, Premium Call 08/01/06
@ 102, Sink Date 02/01/08 @ 100..............1,058,680
500,000 Indiana Bond Bank, Elkhart Water\Sewer
Refunding Bonds, 5.55%, 11/01/10,
Callable 11/01/04 @ 102........................527,690
1,000,000 Indianapolis IN, Utilities District Reference
Series B, 4.00%, 06/01/12....................1,070,610
1,000,000 Indianapolis IN, Public Transportation,
6.00%, 07/01/10, Callable 07/01/03
@ 102..........................................921,310
1,000,000 Kokom-Center, IN, School Building Corp.,
6.75%, 07/15/04..............................1,129,550
------------
5,722,810
------------
Iowa (1.14%)
500,000 Iowa State Certificate Participation, 6.50%,
07/01/06, Callable 07/01/02 @ 102,
Callable 07/01/04 @ 100........................550,205
------------
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL BOND FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
MUNICIPAL BONDS (CONTINUED):
Massachusetts (1.09%)
500,000 Massachusetts Bay Transportation
Authority, 5.30%, 03/01/08,
Callable 03/01/06 @ 101........................527,495
------------
Minnesota (2.16%)
1,000,000 Minneapolis, MN , Reference Series A,
5.10%, 12/01/08, Callable 12/01/05
@ 100........................................1,041,770
------------
Nevada (2.14%)
500,000 Clark County, NV, Sanitation
District, 5.60%, 07/01/07,
Callable 07/01/03 @ 101........................528,425
500,000 State of Nevada, 4.40%, 11/01/01...............504,985
------------
1,033,410
------------
New Jersey (1.07%)
500,000 New Jersey Wastewater Treatment
Trust Series A, 4.80%, 09/01/06................515,345
------------
New Mexico (1.07%)
500,000 Albuquerque, NM, School District #12,
5.30%, 08/01/08, Callable 08/01/03
@ 103..........................................518,030
------------
Rhode Island (1.60%)
250,000 Rhode Island State, 4.90%, 06/15/04............256,063
500,000 Rhode Island State Construction Capital
Development, Series B, 6.00%, 05/15/99.........516,430
------------
772,493
------------
Tennessee (2.22%)
1,000,000 Metropolitan Government Nashville &
Davidson County, TN, 5.50%,
07/01/08.....................................1,072,990
------------
Texas (9.78%)
500,000 Dallas, TX, Water & Sewer, 4.90%,
04/01/04, Callable 04/01/03 @ 100..............513,370
1,000,000 Pharr-San Juan-Alamo, TX Independent
School District, 5.25%, 02/01/08.............1,050,390
900,000 Sam Rayburn Texas Municipal, 6.00%,
09/01/10, Callable 09/01/09 @ 100............1,019,052
1,000,000 San Antonio, TX, 6.00%, 08/01/08.............1,125,440
1,000,000 Texas State G.O., 4.80%, 10/01/09............1,014,290
------------
4,722,542
------------
Utah (1.11%)
500,000 Salt Lake County, UT, 5.50%
12/15/04.......................................537,915
------------
Virginia (2.63%)
1,000,000 Virginia Beach, VA, 5.40%,
09/01/09.....................................1,068,560
195,000 Virginia Educational Loan Authority
Series E, 5.50%, 03/01/01......................201,774
------------
1,270,334
------------
Washington (9.31%)
1,000,000 Benton County, WA, Public Utility,
5.45%, 11/01/08..............................1,066,830
800,000 Grant County, WA, Public Utilities
Hydro-Electric, 5.60%, 11/01/08................852,384
500,000 Seattle, WA, Water System Revenue,
4.70%, 12/01/00................................509,760
1,000,000 Thurston County, WA #111, 5.00%,
12/01/10.....................................1,016,820
500,000 Washington State, 6.80%, 10/01/02,
Callable, 10/01/99 @ 100.......................521,225
500,000 Washington State Government
Obligation, 5.35%, 09/01/06, Callable
09/01/05 @ 100.................................528,790
------------
4,495,809
------------
Wisconsin (10.40%)
500,000 City of Beloit, WI, Sewer System
Revenue Bond, 4.80%, 07/01/05................512,890
500,000 Franklin, WI, Public School District,
4.75%, 04/01/04................................511,260
500,000 Green Bay, WI, Area School Dist.,
4.40%, 04/01/02...............................504,930
400,000 Kenosha, WI, Series A, 4.90%, 04/01/99........404,788
500,000 Madison, WI, 5.00%, 04/01/05...................518,820
500,000 Milwaukee, WI, 5.15%, 11/15/08.................521,235
500,000 Sturgen Bay, 4.90%, 01/01/06...................511,525
500,000 Wisconsin Housing & Economic
Development Revenue Bond, 5.20%,
11/01/06, Callable 10/01/03 @ 102..............512,980
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL BOND FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
MUNICIPAL BONDS (CONTINUED):
1,000,000 Wisconsin State Series A, 5.00%, 05/01/09,
Callable 05/01/06 @ 100......................1,024,000
------------
5,022,428
------------
Wyoming (0.54%)
250,000 Cheyenne, WY, 5.45%, 12/01/01.................261,340
------------
Total Municipal Bonds ......................40,223,271
------------
ALTERNATIVE MINIMUM TAX PAPER (10.83%):
South Dakota (1.08%)
500,000 South Dakota Student Loan, 5.85%,
08/01/00 ......................................519,680
------------
Municipal Bond (9.75%)
1,000,000 Alaska Student Loan, 5.63%, 07/01/07,
Callable 07/01/05 @ 100 .....................1,053,680
500,000 Austin, TX, Airport Revenue, 5.50%,
11/15/06, Continuously Callable................533,905
300,000 Illinois Student Assistance Commission,
Student Loan Revenue, Series M, 6.30%,
03/01/03.......................................315,864
500,000 Iowa Student Loan, 5.75%, 12/01/06.............525,915
1,000,000 Iowa Student Loan Liquidity Corp.
Series C, 5.10%, 06/01/09...................1,020,950
500,000 Massachusetts Education Loan Authority,
5.60%, 07/01/06................................532,550
500,000 New Mexico Educational Assistance,
5.75%, 08/01/07................................531,490
190,000 Student Loan Funding Corp., Series C,
5.50%, 12/01/01................................195,890
------------
4,710,244
------------
Total Alternative Minimum Tax Paper 5,229,924
------------
INVESTMENT COMPANIES (0.88%):
426,631 B.T. Tax Free Money Fund, 4.99%................426,631
------------
Total Investments in Securities (99.16%)
(Cost $46,472,915) (a).....................$47,878,019
Other Assets & Liabilities (0.84%).............403,645
------------
Net Assets 100.0%..........................$48,281,664
============
(a) At March 31, 1998, cost for federal income tax purposes differs from
market value by net unrealized appreciation of securities as follows:
Unrealized Appreciation..............$ 1,441,074
Unrealized Depreciation..............$ (35,970)
-----------
Net Unrealized Appreciation..........$ 1,405,104
===========
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE BALANCED FUND
Very simply, the year ended March 31, 1998 was a good one for the financial
markets in general, and for the Fund in particular. Throughout the period, the
stock portion of the portfolio was heavily-weighted in larger capitalization
financial, healthcare and technology stocks -- sectors that were among the
market's best performers.
During the period, too, the fixed income portion of the portfolio was
reallocated. In an effort to capture opportunities for better yield and gains as
rates came down, assets were invested in a broader spectrum of securities. We're
very pleased to report that these efforts were successful. For the year ended
March 31, 1998, the Fund produced a total return of 33.46%* (after expenses).
FINE TUNING FOR THE FUTURE
Although large cap stocks remain the investment of choice, the Fund's moderate
exposure to the mid-cap sector is expected to aid performance. Consequently, we
anticipate few changes in the stock portion of the portfolio in the coming
months. With regard to bonds, however, we are optimistic -- yet, somewhat wary
regarding the near-term. Should events in Asia seriously impact the U.S.
economy, interest rates could fall, perhaps significantly. Clearly, caution is
warranted -- but such a turn of events would create opportunities, and the Fund
is now well-positioned to capitalize on any that might arise.
As of March 31, 1998, approximately 41% of the portfolio's assets were invested
in fixed income securities and 59% was invested in stocks. The top five equity
holdings in the portfolio were: Pfizer (1.7% of the portfolio's assets),
NationsBank (1.4%), Lucent (1.4%), Newell (1.4%), and Northern Telecom (1.3%).
The fixed income portion of the portfolio was invested in a variety of treasury
securities, corporate bonds, and mortgage-related securities. The average
maturity of these holdings was 7.15 years; the average credit quality was AAA.**
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Standard & Poor's 500 Stock Index ("S&P 500") and in the Lehman Brothers
Intermediate Government/Corp. Bond Index.
_______________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year (6/01/95) |
|_______________________________________|
| |
| 3/31/98 10.71% 33.46% 20.05% |
|_______________________________________|
*Aggregate Total Return
* PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF SHARES
IN THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
** THE COMPOSITION OF THE FUND'S HOLDINGS IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE BALANCED FUND IS MEASURED AGAINST A COMPOSITE OF
THE S&P 500 INDEX, AN UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE
PERFORMANCE OF THE U.S. STOCK MARKET, AND THE LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CORPORATE BOND INDEX, AN UNMANAGED INDEX GENERALLY CONSIDERED TO BE
REPRESENTATIVE OF THE PERFORMANCE OF GOVERNMENT AND CORPORATE BONDS WITH
MATURITIES OF 1-10 YEARS. IN THE COMPOSITE, EACH INDEX IS GIVEN A 50% WEIGHTING.
THE TWO INDICES DO NOT REFLECT THE DEDUCTION OF EXPENSES ASSOCIATED WITH A
MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT FEES. THE FUND'S PERFORMANCE REFLECTS
THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BALANCED FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
U.S. TREASURY NOTES (10.83%):
$1,000,000 6.38%, 07/15/99.............................$1,009,690
1,000,000 6.38%, 01/15/00..............................1,012,810
1,000,000 6.25%, 05/31/00..............................1,012,810
1,515,000 5.88%, 11/15/05..............................1,527,302
750,000 6.00%, 05/31/98................................750,585
1,500,000 6.63%, 04/30/02..............................1,550,625
------------
Total U.S. Treasury Notes ...................6,863,822
------------
US TREASURY BONDS (3.02%):
1,000,000 7.50%, 11/15/16..............................1,166,090
650,000 7.25%, 08/15/22................................750,854
------------
Total U.S. Treasury Bonds....................1,916,944
------------
MORTGAGE-BACKED SECURITIES (6.45%):
Collateralized Mortgage Obligations (0.72%)
80,926 Chase Mortgage Finance Corp.,
1993-F1, 5.75%, 04/25/09........................80,341
175,000 Collateralized Mtge. Securities Corp.,
1991-6 Class, P1, 7.00%, 09/20/21..............176,148
3,392 Federal Home Loan Mtge. Corp., 188-F,
188-F, 7.50%, 05/15/20...........................3,379
50,196 Residential Funding Mortgage, 1993-S7,
Class A6, 7.15%, 02/25/08.......................50,494
12,668 Resolution Trust Corp., 1992-17, 8.91%*,
12/25/20........................................12,625
194,154 Salomon Brothers Mortgage Securities,
1995-1, VII P/O, 10.54%**,
02/25/25.......................................135,801
------------
458,788
------------
Federal Home Loan Mortgage Corp.
Mortgage-Backed Pools (1.01%)
600,000 #C00592, 7.00%, 03/01/28.......................606,792
31,404 #A00851, 8.50%, 12/01/19........................33,069
------------
639,861
------------
Federal National Mortgage Assoc.
Mortgage-Backed Pools (0.23%)
145,453 #251286, 7.00%, 11/01/27.......................146,917
------------
Government National Mortgage Assoc.
Mortgage-Backed Pools (4.49%):
81,193 #359600, 7.50%, 07/15/23........................83,453
218,698 #376218, 7.50%, 08/15/25.......................224,374
100,622 #385300, 8.00%, 10/15/24.......................104,223
82,668 #410049, 8.00%, 07/15/25........................85,600
148,929 #412334, 7.00%, 10/15/27.......................150,562
590,701 #451522, 7.50%, 10/15/27.......................605,847
598,578 #462556, 6.50%, 02/15/28.......................592,892
118,134 #305975, 9.00%, 07/15/21.......................127,771
47,675 #318184, 8.50%, 11/15/21........................50,745
573,595 #780584, 7.00%, 06/15/27.......................579,886
235,904 #780619, 7.00%, 08/15/12.......................241,412
------------
2,846,765
------------
Total Mortgage-Backed Securities 4,092,331
------------
U.S. TAXABLE MUNICIPAL BONDS (1.88%):
205,000 Berry Creek, CO, 6.65%, 12/01/01...............208,149
195,000 Fulton, MO, 7.60%, 07/01/11....................213,121
200,000 New Orleans, LA, 8.00%, 12/01/03...............198,520
110,000 Nazarene, ID, 6.75%, 11/01/99..................110,804
97,740 Oregon D.O.T., 9.00%, 06/15/00.................100,197
250,000 Portland, OR, 7.63%, 12/01/01.................252,100
100,000 Texas State G.O., 8.70%, 12/01/09..............112,150
------------
Total U.S. Taxable Municipal Bonds...........1,195,041
------------
CORPORATE BONDS (11.34%):
Asset-Backed (1.59%):
1,000,000 Bear Asset Trust Securities,
Series 1997-1A, 6.69%, 06/15/03.............1,005,328
------------
Banking (1.43%)
800,000 NationsBank, 8.50%, 01/15/07...................906,135
------------
Financial Services (6.82%)
1,000,000 John Deere, 5.85%, 01/15/01...................996,430
500,000 GMAC, 7.50%, 04/11/00..........................513,865
250,000 GMAC, 6.50%, 12/05/05..........................250,240
210,000 HUBCO, INC., 7.75%, 01/15/04...................217,613
* Variable rate security, interest rate is as of March 31, 1998.
** Principal only represents securities that entitle holders to receive
only principal payments on the underlying mortgages. The yield to
maturity of a principal only is sensitive to the rate of principal
payments on the underlying mortgages. A slow (rapid) rate of
principal repayments may have an adverse (positive) effect on yield
to maturity. Interest rate disclosed represents current yield at
date of purchase.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BALANCED FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
CORPORATE BONDS (CONTINUED):
250,000 Lehman Brothers, MTN,
8.05%, 01/15/19................................283,270
1,000,000 Norwest, 7.20%, 05/01/07.....................1,051,130
1,000,000 Salomon Smith Barney, 6.63%,
11/15/03.....................................1,011,620
------------
4,324,168
------------
Industrial Goods and Services (0.81%)
500,000 Cummins Engine, 6.75%, 02/15/27................512,805
------------
Sovereign (0.28%)
150,000 Nova Scotia, 8.25%, 11/15/19...................176,805
------------
Telecommunications (0.41%)
250,000 AT&T Corp., 7.00%, 05/15/05....................261,580
------------
Total Corporate Bonds........................7,186,821
------------
COMMON STOCKS (59.44%):
Aerospace & Military Technology (0.81%)
8,500 Sundstrad Corp.................................514,250
------------
Automotive Parts & Equipment (0.67%)
7,500 Lear Corp......................................422,812
------------
Banking (4.22%)
10,000 Bank of New York Co., Inc......................628,125
9,000 BankAmerica Corp...............................743,625
7,000 First Union....................................397,250
12,400 Nation's Bank..................................904,425
------------
2,673,425
------------
Beverages - Soft Drinks (1.29%)
19,100 PepsiCo, Inc...................................815,330
------------
Biotech (0.86%)
5,000 Agouron Pharmaceuticals, Inc...................189,375
5,500 Elan Corporation PLC...........................355,438
------------
544,813
------------
Chemicals (1.91%)
5,500 Air Products & Chemical........................455,813
14,500 Monsanto.......................................754,000
------------
1,209,813
------------
Computer Hardware (2.40%)
9,750 Cisco Systems..................................666,656
28,400 Compaq Computer Corp...........................734,850
3,200 EMC Corporation................................121,000
------------
1,522,506
------------
Computer-Software & Peripherals (1.73%)
6,400 Microsoft......................................572,800
15,800 Parametric Technology..........................526,338
------------
1,099,138
------------
Consumer Goods & Services (4.49%)
16,300 Cendat Corporation.............................645,887
10,000 Dial Corporation...............................239,375
6,500 Gillette Co....................................771,469
6,000 Procter & Gamble Co............................506,250
10,000 Unilever.......................................686,250
------------
2,849,231
------------
Containers & Packaging (0.74%)
8,800 Avery Dennison Corp............................469,700
------------
Diversified (2.49%)
13,600 Alliedsignal Inc...............................571,200
8,000 FDX Corporation................................569,000
10,000 Kansas City Southern...........................440,000
------------
1,580,200
------------
Electrical & Electronic (3.12%)
12,400 Emerson Electric...............................808,325
8,400 General Electric Company.......................723,975
10,500 Solectron Corp.................................443,625
------------
1,975,925
------------
Entertainment (0.64%)
3,800 Walt Disney....................................405,650
------------
Financial Services (2.66%)
10,000 Fannie Mae.....................................632,500
8,000 Franklin Resources, Inc........................424,000
10,500 Travelers Group, Inc...........................630,000
------------
1,686,500
------------
Health Care (0.61%)
5,500 Lincare Holdings ..............................388,437
------------
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BALANCED FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COMMON STOCKS (CONTINUED):
Health Care Products and Services (2.67%)
11,500 Baxter International...........................633,937
13,200 Healthsouth Corp...............................370,425
10,200 Health Care & Retirement.......................437,963
3,200 Shared Medical Systems.........................250,800
------------
1,693,125
------------
Home Furnishings (1.41%)
18,400 Newell Co., Inc................................891,250
------------
Industrial Goods & Services (1.03%)
7,100 United Technologies Corp.......................655,418
------------
Insurance (3.27%)
6,600 Allstate Corp..................................606,787
4,275 American International Group...................538,383
2,900 Chubb Corp.....................................227,288
8,000 Marsh & McLennan...............................698,500
------------
2,070,958
------------
Medical Equipment & Supplies (0.98%)
12,000 Medtronic, Inc.................................622,500
------------
Newspaper & Publishing (1.53%)
9,600 Gannett Inc....................................690,000
4,000 Tribune Co.....................................282,000
------------
972,000
------------
Oil & Gas Exploration Products & Services (3.04%)
12,600 ENSCO International............................349,650
7,200 Halliburton Co.................................361,350
5,000 MOBIL Corporation..............................383,125
7,800 Schlumberger, Ltd..............................590,850
5,500 Tidewater, Inc.................................240,969
------------
1,925,944
------------
Pharmaceuticals (4.99%)
5,800 Bristol Meyers Squibb Co.......................605,013
11,100 Eli Lilly & Company............................661,838
10,700 Pfizer, Inc..................................1,066,656
13,300 SmithKline Beecham.............................832,081
------------
3,165,588
------------
Retail Stores/Catalog (0.57%)
10,000 Proffit's, Inc.................................362,500
------------
Retail - General Merchandise (1.03%)
8,000 Kohls Corp.....................................654,000
------------
Retail - Specialty Stores (4.57%)
10,000 CVS Corp.......................................755,000
9,000 Lowe's Companies...............................631,688
30,000 Staples........................................695,625
23,200 Walgreen Co....................................816,350
------------
2,898,663
------------
Semiconductors (0.60%)
4,900 Intel Corporation..............................382,506
------------
Telecom Services & Equipment (1.33%)
13,000 Northern Telecom, Ltd..........................840,125
------------
Telecommunications (2.37%)
8,800 Ameritech Corp.................................435,050
7,500 GTE Corp.......................................449,063
16,000 LCI International..............................616,000
------------
1,500,113
------------
Telecommunications-Services and Equipment (1.41%)
7,000 Lucent Technologies............................895,125
------------
Total Common Stock..........................37,687,545
------------
INVESTMENT COMPANIES (3.70%):
2,346,718 Government Assets Fund.......................2,346,718
------------
Total Investments in Securities (96.66%)
(Cost $48,614,526) (a).....................$61,289,222
Other Assets & Liabilities (3.32%)...........2,113,617
------------
Net Assets 100.0%..........................$63,402,839
============
(a) At March 31, 1998, cost for federal income tax purposes differs from
market value by net unrealized appreciation of securities as follows:
Unrealized Appreciation............$ 12,802,655
Unrealized Depreciation............$ (127,959)
------------
Net Unrealized Appreciation........$ 12,674,696
============
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE EQUITY FUND
While there were some thrilling and chilling moments, to be sure, the year ended
March 31, 1998 was a very profitable one overall for the stock market. Hitting
new highs month after month, the Dow Jones Industrial Average ended the period
just a whisker under 9000. Large capitalization stocks led the stampede -- and,
as a result, we are very pleased to report that, for the year ended March 31,
1998, the portfolio produced a total return of 45.54%* (after expenses) for
Class S Shares.
While holdings across the market made strong gains, the healthcare sector was
extremely rewarding throughout the year. Pfizer (2.3% of the Fund's assets),
Warner-Lambert (2.3%) and American Home Products (2.0%) rocketed higher as the
sales of heart, cholesterol, diabetes and osteoporosis drugs rose. Our positions
in the telecommunications sector also did very well indeed. By the end of the
period, Lucent had become the portfolio's largest holding simply through
appreciation.
AN UP-DOWN-UP MARKET
While there are many pundits willing to try, no one can accurately predict how
the Asian contagion will effect the next few quarters of earnings. Nonetheless,
we feel our holdings will not suffer dramatically. Moreover, with low interest
rates, relatively good earnings and moderate inflation, the market could even
continue to rise. In addition, looking past any possible valley, we see a good
deal of strength in many areas. In recent months, European markets have surged,
and these companies are now experiencing the benefits of this and, in some
cases, restructuring as well. Consequently, several international stocks were
recently added to the portfolio.
As of March 31, 1998, the portfolio was fully invested and widely diversified
with positions in some 70 different companies. As of the same date, the top five
holdings in the Fund's portfolio were: Lucent Technologies (2.4% of the
portfolio's assets), Warner-Lambert (2.3%), Pfizer (2.3%), General Electric
(2.3%), and Walt Disney (2.0%).**
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Standard & Poor's 500 Stock Index ("S&P 500").
_________________________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year 5 Year (12/15/92) |
|_________________________________________________|
| |
| 3/31/98 14.19% 45.54% 22.18% 20.36% |
|_________________________________________________|
*Aggregate Total Return
* PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF SHARES
IN THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
** THE COMPOSITION OF THE FUND'S HOLDINGS IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE EQUITY FUND IS MEASURED AGAINST THE S&P 500
INDEX, AN UNMANAGED INDEX GENERALLY REPRESENTATIVE OF THE PERFORMANCE OF THE
U.S. STOCK MARKET. THE INDEX DOES NOT REFLECT THE DEDUCTION OF EXPENSES
ASSOCIATED WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT FEES. THE FUND'S
PERFORMANCE REFLECTS THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
EQUITY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COMMON STOCKS (98.58%):
Aerospace & Military Technology (1.54%)
120,000 Sundstrand Corp...............................$7,260,000
-----------
Banking (8.99%)
100,000 Bank of New York Co., Inc......................6,281,250
100,000 BankAmerica Corp...............................8,262,500
40,000 Bankers Trust New York, Corp...................4,812,500
100,000 First Union....................................5,675,000
107,300 Nation's Bank..................................7,826,194
170,000 Norwest Corp...................................7,065,625
60,000 Regions Financial..............................2,516,250
-----------
42,439,319
-----------
Beverages - Soft Drinks (1.63%)
180,000 PepsiCo, Inc...................................7,683,750
-----------
BioTechnologies (0.96%)
120,000 Agouron Pharmaceuticals, Inc...................4,545,000
-----------
Business Services (1.17%)
60,000 American Express Co............................5,508,750
-----------
Chemicals (4.89%)
142,100 Avery Dennison Corp............................7,584,588
100,000 Imperial Chemicals Spons. ADR..................7,187,500
160,000 Monsanto.......................................8,320,000
-----------
23,092,088
-----------
Computer Hardware (2.94%)
120,000 Cisco Systems..................................8,205,000
220,000 Compaq Computer Corp...........................5,692,500
-----------
13,897,500
-----------
Computer - Software and Peripherals (2.50%)
57,400 Microsoft......................................5,137,300
200,000 Parametric Technology..........................6,662,500
-----------
11,799,800
-----------
Computer - Mainframe (0.44%)
50,000 Sun Microsystems...............................2,085,938
-----------
Consumer Goods & Services (6.08%)
90,000 Colgate Palmolive..............................7,796,250
70,000 Gillette Co....................................8,308,125
80,000 Procter & Gamble Co............................6,750,000
85,000 Unilever.......................................5,833,125
-----------
28,687,500
-----------
Diversified (5.99%)
200,000 Alliedsignal, Inc..............................8,400,000
100,000 FDX Corporation................................7,112,500
80,000 Kansas City Southern...........................3,520,000
120,000 Textron, Inc...................................9,240,000
-----------
28,272,500
-----------
Electrical & Electronic (5.15%)
130,000 Emerson Electric Co............................8,474,375
125,000 General Electric Co...........................10,773,435
120,000 Solectron Corp.................................5,070,000
-----------
24,317,810
-----------
Electronic Components/Instruments (1.40%)
90,000 Philips Electronics............................6,609,375
-----------
Entertainment (2.03%)
89,800 Walt Disney....................................9,586,150
-----------
Financial Services (5.34%)
160,000 Federal Home Loan..............................7,590,000
120,000 Fannie Mae.....................................7,590,000
100,000 Pain Webber Group, Inc.........................4,012,500
100,000 Travelers Group, Inc...........................6,000,000
-----------
25,192,500
-----------
Health Care (1.64%)
140,000 Baxter International...........................7,717,500
-----------
Home Furnishings (1.64%)
160,000 Newell Co's., Inc..............................7,750,000
-----------
Insurance (4.00%)
80,000 Allstate Financial.............................7,355,000
57,000 American International Group...................7,178,438
50,000 Marsh & McLennan...............................4,365,625
-----------
18,899,063
-----------
Medical Equipment & Supplies (2.50%)
90,000 Guidant Corp...................................6,603,750
100,000 Medtronic Incorporated.........................5,187,500
-----------
11,791,250
-----------
Newspaper & Publishing (2.53%)
87,600 Gannett, Inc...................................6,296,250
80,000 Tribune Co.....................................5,640,000
-----------
11,936,250
-----------
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
EQUITY FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COMMON STOCKS (CONTINUED):
Office Equipment & Services (1.13%)
50,000 Xerox Corporation..............................5,321,875
-----------
Oil & Gas Exploration Products & Services (5.05%)
100,000 Diamond Offshore Drilling......................4,537,500
150,000 Global Marine..................................3,712,500
60,000 Halliburton Co.................................3,011,250
38,000 MOBIL Corporation..............................2,911,750
150,000 R&B Falcon Corp................................4,443,750
69,000 Schluberger Ltd................................5,226,750
-----------
23,843,500
-----------
Pharmaceuticals (11.63%)
100,000 American Home Products.........................9,537,500
48,600 Bristol Meyers Squibb Co.......................5,069,588
136,000 Eli Lilly and Company..........................8,109,000
170,000 Mylan Labs.....................................3,910,000
110,000 Pfizer Inc....................................10,965,625
100,000 SmithKline Beecham.............................6,256,250
65,000 Warner Lamber Co..............................11,070,312
-----------
54,918,275
-----------
Retail - General Merchandise (3.21%)
100,000 Dayton Hudson Corp.............................8,800,000
100,000 May Department Stores..........................6,350,000
-----------
15,150,000
-----------
Retail - Specialty Stores (4.33%)
70,000 CVS Corp.......................................5,285,000
120,000 Home Depot.....................................8,092,500
200,000 Walgreen Co....................................7,037,500
-----------
20,415,000
-----------
Semiconductors (2.38%)
86,600 Intel Corporation..............................6,760,213
120,000 Xilinx Inc.....................................4,492,500
-----------
11,252,713
-----------
Technology (0.80%)
70,000 Texas Instruments..............................3,788,750
-----------
Telecommunications (2.60%)
130,000 GTE Corp.......................................7,783,750
225,000 P-Com, Inc.....................................4,500,000
-----------
12,283,750
-----------
Telecommunications - Services and Equipment (4.08%)
90,000 Lucent Technologies...........................11,508,750
120,000 Northern Telecom Ltd...........................7,755,000
-----------
19,263,750
-----------
Total Common Stocks..........................465,309,656
-----------
INVESTMENT COMPANIES (1.37%):
6,448,584 Government Assets Fund.........................6,448,584
-----------
Total Investments in Securities (99.95%)
(Cost $277,805,729) (a).....................$471,758,240
Other Assets & Liabilities (0.05%)...............259,426
------------
NET ASSETS 100.0%...........................$472,017,666
============
(a) At March 31, 1998, the cost of securities for federal income tax
purposes was $277,885,758 and aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized Appreciation...............$196,103,978
Unrealized Depreciation...............$ (2,231,496)
------------
Net Unrealized Appreciation...........$193,872,482
============
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT
VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE AGGRESSIVE GROWTH FUND*
Despite turmoil in markets abroad, the U.S. stock market continued to soar
during the twelve months ended March 31, 1998. Healthcare, retail store, and
financial stocks did particularly well throughout the period and the fund's
holdings performed extremely well. Moreover, the Fund had a large position in
the technology sector early in the period and captured much of this sector's
gains -- despite the fourth quarter sell-off in the sector.
All sectors, however, did not post similarly breathtaking results - and
throughout the period, the Fund was widely diversified. For the year ended March
31, 1998, the Fund produced a simply remarkable total return of 46.82%** (after
expenses).
WHAT'S THE STORY?
We expect that sentiment will continue to favor the largest, liquid names --
given the length of the current expansion, the perceived safety of these large
cap stocks, and the record level of mutual fund cash inflows. Although the Fund
will add to large cap stocks on pullbacks, willingness to look beyond them for
fundamentally sound, mid-cap companies with a strong story to tell will be key
to success in the coming months.
What type of story? Given the current environment where companies have little or
no pricing power, we expect to seek out those looking to increase profitability
by merging, consolidating or streamlining their operations. Even more
specifically, we intend to seek companies making such changes in exciting and
interesting ways -- ways compelling enough to demand the market's attention.
As of March 31, 1998, the top five holdings in the Fund's portfolio were: Cisco
Systems (2.5% of the portfolio's assets), Cendant (2.2%), Bank of New York
(2.2%), LCI International (2.1%) and Healthsouth (2.1%).***
- - --------------------------------------------------------------------------------
This graph, provided in accordance with SEC regulations, compares a $10,000
investment in the Fund, made at the Fund's inception, with a similar investment
in the Standard & Poor's 500 Stock Index ("S&P 500"), in the NASDAQ Composite
Index and in the Standard & Poor's MidCap 400 Stock Index.
_______________________________________
| |
| Average Annual Total Return |
| |
| Since |
| Inception |
| 6 Momth* 1 Year (9/29/95) |
|_______________________________________|
| |
| 3/31/98 9.54% 46.82% 25.20% |
|_______________________________________|
*Aggregate Total Return
* SMALL-CAP COMPANIES TYPICALLY CARRY ADDITIONAL RISK SINCE SMALLER
COMPANIES GENERALLY HAVE A HIGHER RISK OF FAILURE AND, BY DEFINITION
ARE NOT AS WELL-ESTABLISHED AS BLUE-CHIP COMPANIES. HISTORICALLY,
SMALL-COMPANY STOCKS HAVE EXPERIENCED A GREATER DEGREE OF MARKET
VOLATILITY THAN STOCKS ON AVERAGE.
** PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE VALUE OF
SHARES IN THE VINTAGE MUTUAL FUNDS WILL FLUCTUATE SO THAT THE SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
*** THE COMPOSITION OF THE FUND'S HOLDINGS IS SUBJECT TO CHANGE.
THE PERFORMANCE OF THE VINTAGE AGGRESSIVE GROWTH FUND IS MEASURED AGAINST THE
THE S&P 500 STOCK INDEX, THE NASDAQ COMPOSITE INDEX AND THE S&P MID CAP 400
STOCK INDEX, WHICH REPRESENT THE PERFORMANCE OF THE STOCK MARKET AS A WHOLE,
SMALL-CAPITALIZATION STOCKS AND SMALL- TO MID-SIZED COMPANIES RESPECTIVELY. THE
INDICES ARE UNMANAGED AND DO NOT REFLECT THE DEDUCTION OF EXPENSES ASSOCIATED
WITH A MUTUAL FUND, SUCH AS INVESTMENT MANAGEMENT FEES. THE FUND'S PERFORMANCE
REFLECTS THE DEDUCTION OF FEES FOR THESE VALUE-ADDED SERVICES.
<PAGE>
VINTGAE MUTUAL FUNDS, INC.
AGGRESSIVE GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COMMON STOCKS (98.8%):
Advertising (1.39%)
30,000 Omnicom Group.................................$1,411,875
-------------
Aerospace (0.81%)
13,900 Precision Castparts..............................822,706
-------------
Aerospace & Military Technology (1.37%)
3,000 Sundstrand.....................................1,391,500
-------------
Automotive (1.00%)
13,000 Magna International, Inc.......................1,013,188
-------------
Automotive Parts & Equipment (2.44%)
20,000 Federal Mogul Corp.*...........................1,063,750
25,000 Lear Corp.*....................................1,409,375
-------------
2,473,125
-------------
Banking (4.04%)
35,000 Bank of New York Co., Inc......................2,198,438
20,000 First Union....................................1,135,000
12,000 Mellon Bank Corp.................................762,000
-------------
4,095,438
-------------
Beverages - Soft Drinks (1.98%)
47,000 PepsiCo, Inc...................................2,006,313
-------------
Biotech (1.73%)
22,000 Agouron Pharmaceuticals, Inc.*...................833,250
20,000 Alkermes, Inc.*..................................497,500
17,000 Dura Pharmaceuticals*............................418,625
-------------
1,749,375
-------------
Business Services (1.56%)
27,500 Paychex, Inc...................................1,586,406
-------------
Chemicals (3.10%)
16,000 Air Products & Chemical........................1,326,000
35,000 Monsanto.......................................1,820,000
-------------
3,146,000
-------------
Computer Hardware (5.42%)
37,500 Cisco Systems*.................................2,564,063
61,000 Compaq Computer Corp...........................1,578,375
16,000 Lexmark International Group*.....................722,000
15,000 Sun Microsystems*................................625,781
-------------
5,490,219
-------------
Computer - Software and Peripheral (2.22%)
20,000 Cadence Design Systems, Inc.*....................692,500
10,000 Microsoft*.......................................895,000
20,000 Parametric Technology*...........................666,250
-------------
2,253,750
-------------
Consumer Goods & Services (4.32%)
56,000 Cednant Corporation*...........................2,219,000
20,000 Dial Corporation.................................478,750
8,500 Gillette Co....................................1,008,844
8,000 Procter & Gamble Co..............................675,000
-------------
4,381,594
-------------
Containers & Packaging (1.05%)
20,000 Avery Dennison Corp............................1,067,500
-------------
Diversified (4.01%)
28,000 Allied Signal, Inc.............................1,176,000
19,000 FDX Corporation*...............................1,351,375
35,000 Kansas City Southern...........................1,540,000
-------------
4,067,375
-------------
Electrical & Electronic (2.14%)
8,000 General Electric Company.........................689,500
35,000 Solectron Corp.*...............................1,478,750
-------------
2,168,250
-------------
Financial Services (5.06%)
16,000 Federal Home Loan................................759,000
16,000 Fannie Mae.....................................1,012,000
37,000 Franklin Resources, Inc........................1,961,000
39,150 MBNA Corp......................................1,402,059
-------------
5,134,059
-------------
Food - Wholesale Distributor (0.54%)
15,000 U.S. Foodservice.................................552,182
-------------
Health Care (1.18%)
17,000 Lincare Holdings...............................1,200,625
-------------
Health Care Products and Services (6.88%)
17,000 Baxter International.............................937,124
75,000 Healthsouth Corp.*.............................2,104,688
42,750 Health Management Assoc.*......................1,223,719
20,000 Health Care & Retirement*........................858,750
12,000 Shared Medical Systems...........................940,500
25,000 Tenet Healthcare Corp.*..........................907,813
-------------
6,972,594
-------------
*Represents non-income producing securities.
CONTINUED
<PAGE>
VINTGAE MUTUAL FUNDS, INC.
AGGRESSIVE GROWTH FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COMMON STOCKS (CONTINUED):
Home Furnishings (1.43%)
30,000 Newell Co's., Inc..............................1,453,125
-------------
Industrial Goods & Services (1.37%)
15,000 United Technologies Corp.......................1,384,688
-------------
Insurance (2.43%)
17,000 Allstate Financial.............................1,562,938
15,000 Travelers Group, Inc.............................900,000
-------------
2,462,938
-------------
Manufacturing - Consumer Goods (0.87%)
25,000 U.S. Filter*.....................................878,125
-------------
Medical Equipment & Supplies (2.45%)
10,000 Guidant Corp.....................................733,750
18,400 Medtronic Incorporated...........................954,500
20,000 Omnicare, Inc....................................792,500
-------------
2,480,750
-------------
Newspaper & Publishing (0.69%)
10,000 New York Times Co................................700,000
-------------
Oil & Gas Exploration Products & Services (4.37%)
20,000 Ensco International..............................555,000
17,000 Evi, Inc.*.......................................787,313
10,000 Halliburton Co...................................501,875
26,000 Marine Drilling Co.*.............................562,250
21,000 R&B Falcon Corp.*................................622,125
7,000 Schlumberger Ltd.................................530,250
20,000 Tidewater, Inc...................................876,250
-------------
4,435,063
-------------
Pharmaceuticals (5.31%)
30,000 Eli Lilly and Company..........................1,788,750
16,000 Pfizer, Inc....................................1,595,000
32,000 SmithKline Beecham.............................2,002,000
-------------
5,385,750
-------------
Medical Instruments (0.99%)
15,500 Elan Corporation, PLC*.........................1,001,688
-------------
Printing & Publishing (1.42%)
20,000 Gannett, Inc...................................1,437,500
-------------
Research and Development (1.09%)
8,000 Centocor*........................................357,000
20,000 Gartner Group, Inc.*.............................747,500
-------------
1,104,500
-------------
Restaurants (2.24%)
37,000 Landry's Seafood*..............................1,137,750
25,000 Starbucks Corp.*...............................1,132,813
-------------
2,270,563
-------------
Retail Stores/Catalog (3.22%)
20,000 Dress Barn*......................................575,000
33,600 Men's Wearhouse*...............................1,243,200
40,000 Proffitt's, Inc.*..............................1,450,000
-------------
3,268,200
-------------
Retail - General Merchandise (1.61%)
20,000 Kohls Corp.*...................................1,635,000
-------------
Retail - Specialty Stores (4.88%)
16,000 CVS Corp.......................................1,208,000
26,000 Lowe's Companies...............................1,824,875
82,500 Staples*.......................................1,912,969
-------------
4,945,844
-------------
Semiconductors (0.92%)
12,000 Intel Corporation................................936,750
-------------
Technology (2.14%)
25,000 American Power Conver.*..........................717,188
17,100 Analog Devices*..................................568,575
16,000 Computer Science*................................880,000
-------------
2,165,763
-------------
Telecommunications Services & Equipment (4.57%)
25,000 Aspect Telecommunications*.......................670,312
26,000 Northern Telecom Ltd...........................1,680,250
27,000 Cincinnati Bell..................................961,875
10,324 Lucent Technologies............................1,320,182
-------------
4,632,619
-------------
Telecommunications (3.74%)
10,000 GTE Corp.........................................598,750
55,000 LCI International*.............................2,117,500
25,000 Worldcom, Incorporated*........................1,076,563
-------------
3,792,813
-------------
*Represents non-income producing securities.
CONTINUED
<PAGE>
VINTGAE MUTUAL FUNDS, INC.
AGGRESSIVE GROWTH FUND (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 1998
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
------ ----------- -----
COMMON STOCKS (CONTINUED):
Wholesale Distribution - Pharmaceuticals (0.87%)
10,000 Cardinal Health..................................881,875
-------------
Total Common Stock...........................100,237,628
-------------
INVESTMENT COMPANIES (1.30%):
1,316,484 Government Assets Fund.........................1,316,484
-------------
Total Investments in Securities (100.17%)
(Cost $73,780,667) (a)......................$101,554,112
Other Assets & Liabilities (-0.17%).............(176,850)
--------------
NET ASSETS 100.0%............................$101,377,262
==============
* Represents non-income producing securities.
(a) At March 31, 1998, cost for federal income tax purposes differs from
market value by net unrealized appreciation of securities as follows:
Unrealized Appreciation......................$28,871,600
Unrealized Depreciation......................$(1,098,155)
-----------
Net Unrealized Appreciation..................$27,773,445
===========
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1998
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at value $104,413,015 $ 69,163,092 $ 38,874,426 $ 37,838,047 $ 7,255,401
Repurchase agreements 51,316,131 35,163,316 ---- ---- ----
------------ ------------ ------------ ------------ -----------
Total Investments (Cost $155,729,146;
$104,326,408; $38,874,426; $37,563,104;
$7,080,240 respectively) 155,729,146 104,326,408 38,874,426 37,838,047 7,255,401
Cash ---- ---- 53,871 ---- ----
Interest and dividends receivable 170,236 1,016,528 289,683 406,715 91,259
Receivable for capital shares issued 2,917 ---- ---- 2,442 ----
Prepaid expenses ---- 18,668 24,377 18 ----
------------ ------------ ------------ ------------ -----------
Total Assets 155,902,299 105,361,604 39,242,357 38,247,222 7,346,660
------------ ------------ ------------ ------------ -----------
LIABILITIES:
Dividends payable 631,870 393,930 98,520 417,131 122,963
Payable for capital shares redeemed ---- ---- ---- 2,435 ----
Accrued expenses and other payables:
Investment advisory fees 55,273 30,208 12,044 20,423 4,732
Administration fees 29,019 5,179 2,065 8,850 1,599
Accounting fees 4,145 2,589 1,035 1,868 626
Transfer agency fees 10,350 5,184 3,070 5,400 845
Distribution fees ---- 52,029 2,324 ---- 562
Servicing Fees ---- 28,417 6,885 3,510 819
Other 42,133 ---- ---- 10,956 1,318
------------ ------------ ------------ ------------ -----------
Total Liabilities 772,790 517,536 125,943 470,573 133,464
------------ ------------ ------------ ------------ -----------
Net Assets $155,129,509 $104,844,068 $ 39,116,414 $ 37,776,649 $ 7,213,196
============ ============ ============ ============ ===========
</TABLE>
CONTINUED
<PAGE>
VINTAGE MUTUAL FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 1998
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
NET ASSETS:
<S> <C> <C> <C> <C> <C>
Paid-in capital $155,133,473 $104,844,068 $ 39,116,414 $ 37,873,246 $ 6,998,990
Undistributed (distributions in excess of) net
investment income 12,403 ---- ---- (161,806) 7,495
Net unrealized appreciation (depreciation) on
investments ---- ---- ---- 274,943 175,161
Accumulated net realized gains (losses)
investment transactions (16,367) ---- ---- (209,734) 31,550
------------ ------------ ------------ ------------ ------------
Net Assets $155,129,509 $104,844,068 $ 39,116,414 $ 37,776,649 $ 7,213,196
============ ============ ============ ============ ============
Outstanding units of beneficial interest (shares) 3,782,365 731,643
============ ============
Net asset value--offering and redemption price
per share $ 9.99 $ 9.86
============ ============
S SHARES
Net assets applicable to S Shares outstanding $ 69,514,376 $ 7,101,590
============ ============
Shares outstanding, $.001 par value* 69,514,376 7,101,590
============ ============
Net asset value--offering and redemption
price per share $ 1.00 $ 1.00
============ ============
S2 SHARES
Net assets applicable to S2 Shares outstanding $ 5,453,417
============
Shares outstanding, $.001 par value* 5,453,417
============
Net asset value--offering and redemption
price per share $ 1.00
============
T SHARES
Net assets applicable to T Shares outstanding $155,129,509 $ 16,147,416 $ 12,004,573
============ ============ ============
Shares outstanding, $.001 par value* 155,149,043 16,147,416 12,004,573
============ ============ ============
Net asset value--offering and redemption
price per share $ 1.00 $ 1.00 $ 1.00
============ ============ ============
I SHARES
Net assets applicable to I Shares outstanding $ 13,728,859 $ 20,010,251
============ ============
Shares outstanding, $.001 par value* 13,728,859 20,010,251
============ ============
Net asset value--offering and redemption
price per share $ 1.00 $ 1.00
============ ============
* Shares outstanding reflect rounding to the nearest whole share.
</TABLE>
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 1998
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at value (Cost $102,478,692; $103,868,948 $47,878,019 $61,289,222 $471,758,240 $101,554,112
$46,472,915; $48,614,526; $277,805,729;
$73,780,667 respectively)
Cash ---- ---- ---- ---- ----
Interest and dividends receivable 1,379,567 644,889 396,285 529,890 66,552
Receivable from brokers for investments sold ---- ---- 1,990,027 2,052,432 1,138,704
Receivable for capital shares issued ---- ---- 14,840 161,095 30,271
Prepaid expenses 3,688 94 218 7,257 ----
------------ ----------- ----------- ------------ ------------
Total Assets 105,252,203 48,523,002 63,690,592 474,508,914 102,789,639
------------ ----------- ----------- ------------ ------------
LIABILITIES:
Dividends payable 525,739 175,752 189,118 ---- ----
Payable to brokers for investments purchased ---- ---- ---- 1,878,145 668,506
Payable for capital shares redeemed ---- ---- 12,733 26,102 598,265
Accrued expenses and other payables:
Investment advisory fees 53,227 24,478 39,769 294,850 80,039
Administration fees 23,065 10,607 13,787 102,215 21,906
Accounting fees 3,380 2,328 2,546 12,301 3,467
Transfer agency fees 5,334 3,094 9,984 36,217 12,819
Distribution fees ---- ---- ---- ---- ----
Servicing Fees 9,187 4,274 4,769 40,700 8,186
Other 28,177 20,805 15,047 100,718 19,189
------------ ----------- ----------- ------------ ------------
Total Liabilities 648,109 241,338 287,753 2,491,248 1,412,377
------------ ----------- ----------- ------------ ------------
Net Assets $104,604,094 $48,281,664 $63,402,839 $472,017,666 $101,377,262
============ =========== =========== ============ ============
</TABLE>
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 1998
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
---- ---- ---- ---- ----
NET ASSETS:
<S> <C> <C> <C> <C> <C>
Paid-in capital $105,902,128 $46,876,824 $49,142,702 $267,147,565 $ 72,059,095
Undistributed (distributions in excess of)
net investment income (256,051) (264) (5,596) 212,210 ----
Net unrealized appreciation (depreciation) on
investments 1,390,256 1,405,104 12,674,696 193,952,511 27,773,445
Accumulated net realized gains (losses)
on investment transactions (2,432,239) ---- 1,591,037 10,705,380 1,544,722
------------ ----------- ----------- ------------ ------------
Net Assets $104,604,094 $48,281,664 $63,402,839 $472,017,666 $101,377,262
============ =========== =========== ============ ============
Outstanding units of beneficial interest (shares) 10,422,197 4,553,259 4,211,506 5,968,067
============ =========== =========== ============
Net asset value--offering and redemption price
per share $ 10.04 $ 10.60 $ 15.05 $ 16.99
============ =========== =========== ============
S SHARES
Net assets applicable to S Shares outstanding $196,772,499
============
Shares outstanding, $.001 par value* 9,351,729
============
Net asset value--offering and redemption
price per share $ 21.04
============
T SHARES
Net assets applicable to T Shares outstanding $275,245,167
============
Shares outstanding, $.001 par value* 13,074,335
============
Net asset value--offering and redemption
price per share $ 21.05
============
* Shares outstanding reflect rounding to the nearest whole share.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
GOVERNMENT LIQUID LIQUID MUNICIPAL MUNICIPAL
ASSETS FUND ASSETS FUND ASSETS FUND ASSETS FUND ASSETS FUND
1998* 1998*** 1997** 1998*** 1997**
----- ------- ------ ------- ------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $8,479,651 $3,892,364 $9,645,750 $932,453 $795,005
Dividend income ---- ---- ---- ---- ----
---------- ---------- ---------- -------- --------
Total Income 8,479,651 3,892,364 9,645,750 932,453 795,005
---------- ---------- ---------- -------- --------
EXPENSES:
Investment advisory fees 614,671 181,329 428,125 62,948 51,871
Administration fees 309,466 7,777 ---- 3,070 ----
Distribution and administrative services fees S Shares ---- 336,564 1,238,752 20,534 50,758
Distribution and administrative services fees S2 Shares ---- 7,144 759 ---- ----
Distribution and administrative services fees T Shares 330,937 37,334 14,257 42,456 29,791
Custody fees 8,643 72,531 184,226 25,179 27,498
Accounting fees 38,112 22,923 59,982 8,371 7,262
Legal fees 6,692 2,468 7,124 1,508 1,650
Audit fees 17,449 2,469 7,125 1,509 1,651
Trustees' fees 7,667 3,597 10,381 2,768 3,029
Transfer agent fees 72,859 5,184 14,960 3,070 3,359
Registration and filing fees 16,110 5,104 14,730 4,747 5,194
Printing fees 25,922 4,392 12,673 490 537
Other fees 7,564 9,799 22,933 70 10,749
---------- ---------- ---------- -------- --------
Total Expenses 1,456,092 698,615 2,016,027 176,720 193,349
Less: Expenses voluntarily reduced/waived (330,937) ---- (524) ---- (31,087)
---------- ---------- ---------- -------- --------
Net Expenses 1,125,155 698,615 2,015,503 176,720 162,262
---------- ---------- ---------- -------- --------
Net Investment Income (Loss) 7,354,496 3,193,749 7,630,247 755,733 632,743
---------- ---------- ---------- -------- --------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions ---- ---- ---- ---- ----
Net change in unrealized appreciation
(depreciation) from investments ---- ---- ---- ---- ----
---------- ---------- ---------- -------- --------
Net realized and unrealized gains (losses)
from investments ---- ---- ---- ---- ----
---------- ---------- ---------- -------- --------
Change in net assets resulting from operations $7,354,496 $3,193,749 $7,630,247 $755,733 $632,743
========== ========== ========== ======== ========
* For the year ended March 31, 1998
** For the year ended June 30, 1997
*** For the period July 1, 1997 to March 31, 1998
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
LIMITED BOND BOND
TERM BOND FUND FUND INCOME
FUND* 1998*** 1997** FUND*
----- ------- ------ -----
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $2,402,848 $ 500,427 $ 556,858 $6,157,512
Dividend income ---- ---- ---- ----
---------- --------- --------- ----------
Total Income 2,402,848 500,427 556,858 6,157,512
---------- --------- --------- ----------
EXPENSES:
Investment advisory fees 295,198 21,275 23,870 597,102
Administration fees 83,754 2,750 9,821 206,923
Distribution and administrative services fees 189,250 10,115 5,594 464,714
Custody fees 8,484 2,735 3,978 8,303
Accounting fees 15,813 2,735 3,979 27,523
Legal fees 2,356 1,100 1,200 3,774
Audit fees 4,502 1,100 1,200 13,875
Trustees' fees 1,620 800 900 4,404
Transfer agent fees 32,665 3,105 3,978 34,178
Registration and filing fees 3,718 1,500 1,300 11,555
Printing fees 5,444 1,100 1,191 14,117
Other fees 2,593 400 500 4,553
---------- --------- --------- ----------
Total Expenses 645,397 48,715 57,511 1,391,021
Less: Expenses voluntarily reduced/waived (100,920) ---- ---- (248,792)
---------- --------- --------- ----------
Net Expenses 544,477 48,715 57,511 1,142,229
---------- --------- --------- ----------
Net Investment Income (Loss) 1,858,371 451,712 499,347 5,015,283
---------- --------- --------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions 366,075 121,574 (992) 302,739
Net change in unrealized appreciation
(depreciation) from investments 1,062,800 114,558 40,539 3,443,587
---------- --------- --------- ----------
Net realized and unrealized gains (losses)
from investments 1,428,875 236,132 39,547 3,746,326
---------- --------- --------- ----------
Change in net assets resulting from operations $3,287,246 $ 687,844 $ 538,894 $8,761,609
========== ========= ========= ==========
* For the year ended March 31, 1998
** For the year ended April 30, 1997
*** For the period May 1, 1997 to March 31, 1998
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
BOND BALANCED EQUITY GROWTH
FUND* FUND* FUND* FUND*
----- ----- ----- -----
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $2,327,272 $ 1,050,683 $ 271,921 $ 146,494
Dividend income ---- 286,355 4,840,769 482,586
---------- ----------- ------------ -----------
Total Income 2,327,272 1,337,038 5,112,690 629,080
---------- ----------- ------------ -----------
EXPENSES:
Investment advisory fees 280,923 337,619 2,918,334 722,762
Administration fees 97,275 94,729 812,631 159,533
Distribution and shareholder service fees 218,960 205,506 972,788 349,683
Distribution and administrative services fees S Shares ---- ---- 888,588 ----
Custody fees 7,938 13,095 34,426 13,245
Accounting fees 15,550 18,304 116,573 26,604
Legal fees 1,596 1,791 19,833 3,222
Audit fees 11,090 3,249 30,103 8,092
Trustees' fees 2,156 1,853 15,633 3,113
Transfer agent fees 27,821 41,369 133,095 66,932
Registration and filing fees 10,047 8,400 52,699 12,518
Printing fees 6,523 7,806 50,594 12,902
Other fees 2,194 2,938 30,730 3,526
---------- ----------- ------------ -----------
Total Expenses 682,073 736,659 6,076,027 1,382,132
Less: Expenses voluntarily reduced/waived (117,051) (112,540) (972,788) (190,200)
---------- ----------- ------------ -----------
Net Expenses 565,022 624,119 5,103,239 1,191,932
---------- ----------- ------------ -----------
Net Investment Income (Loss) 1,762,250 712,919 9,451 (562,852)
---------- ----------- ------------ -----------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions 207,244 2,643,723 50,328,151 3,108,596
Net change in unrealized appreciation
(depreciation) from investments 1,583,747 9,189,161 94,425,784 24,936,662
---------- ----------- ------------ -----------
Net realized and unrealized gains (losses)
from investments 1,790,991 11,832,884 144,753,935 28,045,258
---------- ----------- ------------ -----------
Change in net assets resulting from operations $3,553,241 $12,545,803 $144,763,386 $27,482,406
========== =========== ============ ===========
* For the year ended March 31, 1998
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GOVERNMENT ASSETS FUND LIQUID ASSETS FUND
----------------------------- -----------------------------------------------
YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1998 MARCH 31, 1987 MARCH 31, 1998 JUNE 30, 1997 JUNE 30, 1996
--------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,354,496 $ 6,824,309 $ 3,193,749 $ 7,630,247 $ 8,351,285
Net realized gains/(losses)
from investment transactions ------ ------ ------ ------ ------
Net change in unrealized
appreciation/(depreciation)
from investments ------ ------ ------ ------ ------
------------ ------------ ------------ ----------- --------------
Change in net assets resulting
from operations 7,354,496 6,824,309 3,193,749 7,630,247 8,351,285
------------ ------------ ------------ ----------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
S Shares ------ ------ (2,109,726) (7,315,154) (8,351,285)
S2 Shares ------ ------ (87,386) (7,481) ------
T Shares (7,258,184) (6,824,309) (800,589) (286,410) ------
I Shares (196,048) (21,202) ------
From net realized gains
T Shares ------ (98,019) ------ ------ ------
------------ ------------ ------------ ----------- --------------
Change in net assets from
shareholder distributions (7,258,184) (6,922,328) (3,193,749) (7,630,247) (8,351,285)
------------ ------------ ------------ ----------- --------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ ------ ------
S Shares ------ ------ 385,529,798 808,459,153 1,141,629,915
S2 Shares ------ ------ 20,606,810 2,401,469 ------
T Shares 556,870,585 432,771,449 159,478,295 72,574,682 ------
I Shares ------ ------ 22,152,126 3,414,238 ------
REINVESTMENTS:
Capital Shares ------ ------ ------ ------ ------
S Shares ------ ------ 436 14,510 159,592
S2 Shares ------ ------ ----- ----- ------
T Shares 1,626,697 1,185,207 2,153 ------ ------
I Shares ------ ------ 10,464 12,730 ------
REDEMPTIONS:
Capital Shares ------ ------ ------ ------ ------
S Shares ------ ------ 376,678,219) (927,444,118) (1,129,241,627)
S2 Shares ------ ------ (16,926,224) (628,638) ------
T Shares (562,162,290) (428,996,222) (161,192,225) (54,715,488) ------
I Shares ------ ------ (10,790,034) (1,070,664) ------
Investor Shares ------ ------ ------ ------ ------
Select Shares ------ ------ ------ ------ ------
Institutional Shares ------ ------ ------ ------ ------
------------ ------------ ------------ ----------- --------------
Change in net assets from
capital transactions (3,665,008) 4,960,434 22,193,380 (96,982,127) 12,547,880
------------ ------------ ------------ ----------- --------------
Change in net assets (3,568,696) 4,862,415 22,193,380 (96,982,127) 12,547,880
NET ASSETS:
Beginning of period 158,698,205 153,835,790 82,650,688 179,632,815 167,084,935
------------ ------------ ------------ ----------- --------------
End of period $155,129,509 $158,698,205 $104,844,068 $82,650,688 $ 179,632,815
============ ============ ============ =========== ==============
</TABLE>
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT ASSETS FUND LIQUID ASSETS FUND
----------------------------- -----------------------------------------------
YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1998 MARCH 31, 1987 MARCH 31, 1998 JUNE 30, 1997 JUNE 30, 1996
--------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
S Shares ------ ------ 385,529,798 808,459,153 1,141,629,915
S2 Shares ------ ------ 20,606,810 2,401,469 ------
T Shares 556,870,585 432,771,570 159,478,295 72,574,682 ------
I Shares ------ ------ 22,152,126 3,414,238 ------
REINVESTMENTS:
Capital Shares ------ ------ ------ ------ ------
S Shares ------ ------ 436 14,510 159,592
S2 Shares ------ ------ ------ ------ ------
T Shares 1,626,697 1,185,207 2,153 ------ ------
I Shares ------ ------ 10,464 12,730 ------
REDEMPTIONS:
Capital Shares ------ ------ ------ ------ ------
S Shares ------ ------ (376,678,219) (927,444,118) (1,129,241,627)
S2 Shares ------ ------ (16,926,224) (628,638) ------
T Shares (562,162,290) (428,996,222) (161,192,225) (54,715,488) ------
I Shares ------ ------ (10,790,034) (1,070,664) ------
Investor Shares ------ ------ ------ ------ ------
Select Shares ------ ------ ------ ------ ------
Institutional Shares ------ ------ ------ ------ ------
------------ ------------ ------------ ----------- --------------
Change in shares (3,665,008) 4,960,555 22,193,380 (96,982,127) 12,547,880
============ ============ ============ =========== ==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL ASSETS FUND LIMITED TERM BOND FUND
----------------------------------------------- ------------------------------
PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1998 JUNE 30, 1997 JUNE 30, 1996 MARCH 31, 1998 MARCH 31, 1997
-------------- -------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 755,733 $ 632,743 $ 458,158 $ 1,858,371 $ 2,119,127
Net realized gains/(losses)
from investment transactions ------ ------ ------ 366,075 (539,307)
Net change in unrealized
appreciation/(depreciation)
from investments ------ ------ ------ 1,062,800 (348,677)
------------ ------------ ------------ ----------- -----------
Change in net assets resulting
from operations 755,733 632,743 458,158 3,287,246 1,231,143
------------ ------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ (458,158) (2,051,808)* (2,124,369)
S Shares (121,938) (248,217) ------ ------ ------
T Shares (547,759) (384,266) ------ ------ ------
I Shares (86,036) (260) ------ ------ ------
------------ ------------ ------------ ----------- -----------
Change in net assets from
shareholder distributions (755,733) (632,743) (458,158) (2,051,808) (2,124,369)
------------ ------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Issued:
Capital Shares ------ ------ ------ 9,490,890 13,219,052
S Shares 21,891,470 42,791,777 90,282,876 ------ ------
S2 Shares ------ ------ ------ ------ ------
T Shares 70,995,535 69,522,222 ------ ------ ------
I Shares 26,681,323 126,951 ------ ------ ------
Reinvestments:
Capital Shares ------ ------ ------ 1,509,814 2,000,529
S Shares ------ ------ 1,040 ------ ------
S2 Shares ------ ------ ------ ------ ------
T Shares 13 ------ ------ ------ ------
I Shares 1,122 260 ------ ------ ------
Redemptions:
Capital Shares ------ ------ ------ (13,294,302) (16,669,940)
S Shares (19,453,574) (48,273,846) (96,268,043) ------ ------
S2 Shares ------ ------ ------ ------ ------
T Shares (84,027,361) (44,485,836) ------ ------ ------
I Shares (6,679,405) (120,000) ------ ------ ------
Investor Shares ------ ------ ------ ------ ------
Select Shares ------ ------ ------ ------ ------
Institutional Shares ------ ------ ------ ------ ------
------------ ------------ ------------ ----------- -----------
Change in net assets from
capital transactions 9,409,123 19,561,528 (5,984,127) (2,293,598) (1,450,359)
------------ ------------ ------------ ----------- -----------
Change in net assets 9,409,123 19,561,528 (5,984,127) (1,058,160) (2,343,585)
NET ASSETS:
Beginning of period 29,707,291 10,145,763 16,129,890 38,834,809 41,178,394
------------ ------------ ------------ ----------- -----------
End of period $ 39,116,414 $ 29,707,291 $ 10,145,763 $37,776,649 $38,834,809
============ ============ ============ =========== ===========
</TABLE>
*Includes 161,806 of distributions in excess of net investment income for the
Limited Term Bond Fund for the year ended March 31, 1998.
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL ASSETS FUND LIMITED TERM BOND FUND
----------------------------------------------- ------------------------------
PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1998 JUNE 30, 1997 JUNE 30, 1996 MARCH 31, 1998 MARCH 31, 1997
-------------- -------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
Issued:
Capital Shares ------ ------ ------ 1,000,073 1,340,011
S Shares 21,891,470 42,791,777 90,282,876 ------ ------
S2 Shares ------ ------ ------ ------ ------
T Shares 70,995,535 69,522,222 ------ ------ ------
I Shares 26,681,323 126,951 ------ ------ ------
Reinvestments:
Capital Shares ------ ------ ------ 104,463 204,763
S Shares ------ ------ ------ ------ ------
S2 Shares ------ ------ 1,040 ------ ------
T Shares 13 ------ ------ ------ ------
I Shares 1,122 260 ------ ------ ------
Redemptions:
Capital Shares ------ ------ ------ (1,331,742) (1,697,121)
S Shares (19,453,574) (48,273,846) (96,268,043) ------ ------
S2 Shares ------ ------ ------ ------ ------
T Shares (84,027,361) (44,485,836) ------ ------ ------
I Shares (6,679,405) (120,000) ------ ------ ------
Investor Shares ------ ------ ------ ------ ------
Select Shares ------ ------ ------ ------ ------
Institutional Shares ------ ------ ------ ------ ------
------------ ------------ ------------ ----------- -----------
Change in shares 9,409,123 19,561,528 (5,984,127) (227,206) (152,347)
============ ============ ============ =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND INCOME FUND
------------------------------------------------ ------------------------------
PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1998 APRIL 30, 1997 APRIL 30, 1996 MARCH 31, 1998 MARCH 31, 1997
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 451,712 $ 499,347 $ 329,846 $ 5,015,283 $ 4,858,498
Net realized gains/(losses)
from investment transactions 121,574 (992) 32,638 302,739 (708,174)
Net change in unrealized
appreciation/(depreciation)
from investments 114,558 40,539 (309,728) 3,443,587 (1,520,708)
------------ ------------ ----------- ------------ ------------
Change in net assets resulting
from operations 687,844 538,894 52,756 8,761,609 2,629,616
------------ ------------ ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (122,963) ------ ------ (5,457,783)* (4,793,251)
Investor Shares ------ ------ (6,627) ------ ------
Select Shares (187,461) (225,558) (121,845) ------ ------
Institutional Shares (201,889) (272,474) (155,926) ------ ------
From net realized gains
Investor Shares ------ ------ (111) ------ ------
Select Shares (50,069) (3,670) (1,902) ------ ------
Institutional Shares (38,735) (3,820) (2,031) ------ ------
------------ ------------ ----------- ------------ ------------
Change in net assets from
shareholder distributions (601,117) (505,523) (288,442) (5,457,783) (4,793,251)
------------ ------------ ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ 30,479,946 24,458,873
Investor Shares ------ ------ 201,170 ------ ------
Select Shares 652,405 527,650 4,348,326 ------ ------
Institutional Shares 429,371 284,210 4,723,546 ------ ------
FUND REORGANIZATION:
Capital Shares 15,517,298 ------ ------ ------ ------
Select Shares (3,115,585) ------ ------ ------ ------
Institutional Shares (1,970,210) ------ ------ ------ ------
REINVESTMENTS:
Capital Shares
REINVESTMENTS:
Capital Shares ------ ------ ------ 635,925 587,764
Investor Shares ------ ------ 4,249 ------ ------
Select Shares 217,433 223,068 123,746 ------ ------
Institutional Shares 223,835 235,744 157,957 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ ------ (21,846,804) (15,603,369)
Investor Shares ------ ------ (217,343) ------ ------
Select Shares (9,246,996) (1,217,163) (734,837) ------ ------
Institutional Shares (3,141,350) (531,184) (416,556) ------ ------
------------ ------------ ----------- ------------ ------------
Change in net assets from
capital transactions (433,799) (477,675) 8,190,258 9,269,067 9,443,268
------------ ------------ ----------- ------------ ------------
Change in net assets (347,072) (444,304) 7,954,572 12,572,893 7,279,633
NET ASSETS:
Beginning of period 7,560,268 8,004,572 50,000 92,031,201 84,751,568
------------ ------------ ----------- ------------ ------------
End of period $ 7,213,196 $ 7,560,268 $ 8,004,572 $104,604,094 $ 92,031,201
============ ============ =========== ============ ============
</TABLE>
*Includes 256,051 of distributions in excess of net investment income for the
Income Fund for the year ended March 31, 1998.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND INCOME FUND
------------------------------------------------ ------------------------------
PERIOD YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1998 APRIL 30, 1997 APRIL 30, 1996 MARCH 31, 1998 MARCH 31, 1997
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ 3,066,800 2,480,499
Investor Shares ------ ------ 20,081 ------ ------
Select Shares 63,707 82,098 430,230 ------ ------
Institutional Shares 42,851 57,305 469,448 ------ ------
FUND REORGANIZATIONS:
Capital Shares 1,547,782 ------ ------ ------ ------
Select Shares (310,918) ------ ------ ------ ------
Institutional Shares (196,834) ------ ------ ------ ------
REINVESTMENTS:
Capital Shares ------ ------ ------ 58,323 59,833
Investor Shares ------ ------ 419 ------ ------
Select Shares 21,694 22,804 12,328 ------ ------
Institutional Shares 22,330 24,120 15,738 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ ------ (2,192,247) (1,586,621)
Investor Shares ------ ------ (22,000) ------ ------
Select Shares (917,504) (151,349) (71,768) ------ ------
Institutional Shares (312,140) (83,488) (41,329) ------ ------
------------ ------------ ----------- ------------ ------------
Change in shares (37,994) (48,510) 813,147 932,876 953,711
============ ============ =========== ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND BALANCED FUND
----------------------------- -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 1998 MARCH 31, 1997 MARCH 31, 1998 MARCH 31, 1997
--------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,762,250 $ 1,591,494 $ 712,919 $ 292,146
Net realized gains/(losses)
from investment transactions 207,244 (3,897) 2,643,723 229,926
Net change in unrealized
appreciation/(depreciation)
from investments 1,583,747 (249,407) 9,189,161 643,518
------------ ------------ ------------ ------------
Change in net assets resulting
from operations 3,553,241 1,338,190 12,545,802 1,165,590
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (1,789,100) (1,588,011) (712,919) (293,564)
From net realized gains
Capital Shares (62,080) ------ (1,216,595) (596,340)
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (1,851,180) (1,588,011) (1,929,514) (889,904)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 10,850,108 11,376,829 27,268,652 20,975,187
FUND REORGANIZATIONS:
Capital Shares ------ ------ 12,170,101 ------
REINVESTMENTS:
Capital Shares 259,480 265,066 1,617,767 876,475
REDEMPTIONS:
Capital Shares (9,693,892) (8,664,123) (20,282,085) (3,631,246)
------------ ------------ ------------ ------------
Change in net assets from
capital transactions 1,415,696 2,977,772 20,774,435 18,220,416
------------ ------------ ------------ ------------
Change in net assets 3,117,757 2,727,951 31,390,724 18,496,102
NET ASSETS:
Beginning of period 45,163,907 42,435,956 32,012,115 13,516,013
------------ ------------ ------------ ------------
End of period $ 48,281,664 $ 45,163,907 $ 63,402,839 $ 32,012,115
============ ============ ============ ============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 1,036,577 1,106,061 1,997,554 1,746,733
FUND REORGANIZATIONS:
Capital Shares ------ ------ 838,161 ------
REINVESTMENTS:
Capital Shares 24,716 25,768 73,494 73,663
REDEMPTIONS:
Capital Shares (927,518) (845,708) (1,428,642) (308,788)
------------ ------------ ------------ ------------
Change in shares 133,775 286,121 1,480,567 1,511,608
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS CHANGES OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUND AGGRESSIVE GROWTH FUND
----------------------------- -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 1998 MARCH 31, 1997 MARCH 31, 1998 MARCH 31, 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 9,451 $ 781,655 $ (562,852) $ (241,505)
Net realized gains/(losses)
from investment transactions 50,328,151 17,515,873 3,108,596 1,189,580
Net change in unrealized
appreciation/(depreciation)
from investments 94,425,784 39,007,591 24,936,662 1,285,550
------------ ------------ ------------ ------------
Change in net assets resulting
from operations 144,763,386 57,305,119 27,482,406 2,233,625
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ (19) ------
S Shares (219,004) (770,677) ------ ------
From net realized gains
Capital Shares ------ ------ (2,433,893) (4,877)
S Shares (52,295,174) (7,793,542) ------ ------
------------ ------------ ------------ ------------
Change in net assets from
shareholder distributions (52,514,178) (8,564,219) (2,433,912) (4,877)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Issued:
Capital Shares 347,358,499 112,226,792 45,786,945 28,518,330
S Shares 13,371,077 ------ ------ ------
T Shares 7,570,830 ------ ------ ------
Fund Reorganizations:
Capital Shares (413,656,502) ------ ------ ------
S Shares 187,465,229 ------ ------ ------
T Shares 257,760,576 ------ ------ ------
Reinvestments:
Capital Shares 31,756,386 5,670,815 1,133,752 2,073
Redemptions:
Capital Shares (338,861,274) (67,919,225) (20,005,297) (4,654,513)
S Shares (13,034,174) ------ ------ ------
T Shares (9,631,207) ------ ------ ------
------------ ------------ ------------ ------------
Change in net assets from
capital transactions 70,099,440 49,978,382 26,915,400 23,865,890
------------ ------------ ------------ ------------
Change in net assets 162,348,648 98,719,282 51,963,894 26,094,638
NET ASSETS:
Beginning of period 309,669,018 210,949,736 49,413,368 23,318,730
------------ ------------ ------------ ------------
End of period $472,017,666 $309,669,018 $101,377,262 $ 49,413,368
============ ============ ============ ============
</TABLE>
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS CHANGES OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUND AGGRESSIVE GROWTH FUND
----------------------------- -----------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 1998 MARCH 31, 1997 MARCH 31, 1998 MARCH 31, 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 17,757,680 6,780,632 3,076,295 2,397,474
S Shares 367,993 ------ ------ ------
T Shares 285,915 ------ ------ ------
FUND REORGANIZATIONS:
Capital Shares (20,966,465) ------ ------ ------
S Shares 9,484,771 ------ ------ ------
T Shares 13,078,523 ------ ------ ------
REINVESTMENTS:
Capital Shares 1,696,325 345,069 72,986 169
REDEMPTIONS:
Capital Shares (17,162,795) (3,010,465) (1,334,457) (388,428)
S Shares (505,224) ------ ------ ------
T Shares (290,103) ------ ------ ------
------------ ------------ ------------ ------------
Change in shares 3,746,620 4,115,236 1,814,824 2,009,215
============ ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
1. ORGANIZATION:
IMG Mutual Funds, Inc. was incorporated on November 16, 1994 and
capitalized on May 1, 1995. IMG Mutual Funds, Inc. was renamed Vintage
Mutual Funds, Inc., (the "Fund"), in February 1998. The Fund is registered
under the Investment Company Act of 1940 (the "1940 Act"), as amended, as a
diversified open-end management investment company issuing its shares in
ten series, each series representing a diversified portfolio with distinct
investment objectives and policies. The Government Assets Fund's investment
objective is to seek current income consistent with maintaining liquidity
and stability of principal by investing exclusively in short-term U.S.
Treasury bills, notes and other short-term obligations issued or guaranteed
by the U.S. Government or its agencies or instrumentalities, and repurchase
agreements with respect thereto. The investment objective of the Liquid
Assets Fund is maximum current income consistent with safety of principal
and maintenance of liquidity. The investment objective of the Municipal
Assets Fund is maximum current income exempt from federal income tax,
consistent with safety of principal and maintenance of liquidity. The
investment objective of the Vintage Limited Term Bond Fund is to seek total
return from a portfolio of limited term fixed income securities. The
Vintage Limited Term Bond Fund invests primarily in a diversified portfolio
of fixed income securities including certain types of fixed income
securities that may exhibit greater volatility. The Vintage Bond Fund's
investment objective is to obtain income by investing in a portfolio of
fixed income securities and, secondarily, to seek capital appreciation
consistent with the preservation of capital and prudent investment risk.
The Vintage Bond Fund will invest at least 65 percent of its total assets
in High-Quality Fixed Income Securities at all times. The investment
objective of the Vintage Income Fund is to seek current income, consistent
with the preservation of capital. The Vintage Income Fund invests primarily
in fixed income securities. The investment objective of the Vintage
Municipal Bond Fund is to seek current income, consistent with the
preservation of capital, that is exempt from federal income taxes. The
Vintage Municipal Bond Fund invests primarily in a diversified portfolio of
tax-exempt fixed income securities. The investment objective of the Vintage
Balanced Fund is to seek long-term growth of capital and income. The
Vintage Balanced Fund invests primarily in a diversified portfolio of
equity securities and fixed income securities. The investment objective of
the Vintage Equity Fund is long-term capital appreciation. The Vintage
Equity Fund invests primarily in a diversified portfolio of equity
securities of mainly large capitalization companies with strong earnings
potential. The investment objective of the Vintage Aggressive Growth Fund
is long-term capital growth. The Vintage Aggressive Growth Fund invests
primarily in common stocks and other equity-type securities of small,
medium and large capitalized companies that exhibit a strong potential for
price appreciation relative to other equity securities.
At the close of business on February 13, 1998, the Vintage Mutual Funds,
Inc., acquired the assets and assumed the identifiable liabilities of the
Liquid Assets Fund, the Municipal Assets Fund and the AMCORE Vintage Mutual
Funds, consisting of seven portfolios. Each of these nine portfolios are
considered surviving entities for financial reporting purposes. The net
assets and number of shares outstanding for the acquired Funds at the close
of business on February 13, 1998, were as follows:
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
ACQUIRED FUND NET ASSETS NUMBER OF SHARES
------------- ---------- ----------------
Liquid Assets Fund $ 100,990,658 100,990,658
Municipal Assets Fund $ 35,574,100 35,574,100
AMCORE Vintage Mutual Funds
U.S. Government Obligations Fund $ 154,473,179 154,473,179
Fixed Total Return Fund $ 39,280,349 3,923,783
Fixed Income Fund $ 103,375,637 10,204,762
Intermediate Tax-Free Fund $ 48,201,354 4,505,968
Balanced Fund $ 54,403,937 3,746,341
Equity Fund $ 414,473,997 20,966,465
Aggressive Growth Fund $ 92,960,320 5,840,557
In exchange for the acquired Funds, the Vintage Mutual Funds, Inc., issued
the following capital stock:
VINTAGE MUTUAL FUNDS, INC. NET ASSETS NUMBER OF SHARES
-------------------------- ---------- ----------------
Liquid Assets Fund $ 100,990,658 100,990,658
Municipal Assets Fund $ 35,574,100 35,574,100
Government Assets Fund $ 154,473,179 154,473,179
Limited Term Bond Fund $ 39,280,349 3,923,783
Income Fund $ 103,375,637 10,204,762
Municipal Bond Fund $ 48,201,354 4,505,968
Balanced Fund $ 54,403,937 3,746,341
Equity Fund $ 414,473,997 20,966,465
Aggressive Growth Fund $ 92,960,320 5,840,557
At the close of business on February 18, 1998, the Vintage Mutual Funds,
Inc., acquired the assets and assumed the identifiable liabilities of the
Capital Value Funds, Inc., and the IMG Core Stock Fund. The net assets,
including the following amounts of capital stock and unrealized
appreciation that was combined with the Vintage Mutual Funds, Inc., for the
acquired Fund at the close of business on February 18, 1998, were as
follows:
UNREALIZED
ACQUIRED FUND NET ASSETS APPRECIATION
------------- ---------- ------------
Capital Value Funds, Inc.
Equity Portfolio $ 19,047,810 4,139,358
Total Return Portfolio $ 12,170,101 1,571,382
Fixed Income Portfolio $ 10,431,503 152,525
IMG Core Stock Fund $ 12,521,493 2,180,745
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
In exchange for the acquired Funds, the Vintage Mutual Funds, Inc., issued
the following capital stock:
VINTAGE MUTUAL FUNDS, INC. NUMBER OF SHARES NAV PER SHARE
Equity Fund 1,596,829 $ 19.77
Balanced Fund 838,161 $ 14.52
Bond Fund 1,041,068 $ 10.02
The Government Assets Fund offers two classes of shares. T Shares are
normally offered through trust organizations or others providing
shareholder services such as establishing and maintaining records and
accounts for their customers who invest in T Shares, assisting customers in
processing purchase, exchange and redemption requests, and responding to
customers' inquiries regarding their accounts. S Shares are offered
directly or through other broker-dealers. S Shares accrue daily dividends
in the same manner as T Shares except that S Shares bear distribution
and/or shareholder administrative servicing fees which T Shares do not.
Differences in class level expenses may affect performance.
Liquid Assets Fund and Municipal Assets Fund offer multiple classes of
shares. S Shares are offered to customers of banks. S Shares are normally
offered through financial institutions providing automatic "sweep"
investment programs to their own customers. T Shares may be purchased only
by financial institutions acting on their own behalf or on behalf of
certain customers' accounts. I Shares may be purchased by individual and
institutional investors directly from the Fund's Distributor. T Shares and
I Shares accrue daily dividends in the same manner as S Shares except that
each class bears separate distribution and/or shareholder servicing fees.
Liquid Assets Fund also offers S2 Shares which are offered through
financial institutions providing automatic "sweep" investment programs to
their own customers.
The Vintage Equity Fund offers two classes of shares. T Shares of the
Vintage Equity Fund are offered solely to fiduciary accounts of AMCORE
Investment Group, N.A., over which AMCORE Investment Group, N.A. exercises
investment discretion. The Vintage Equity Fund also offers S Shares which
accrue dividends in the same manner as T Shares except that each class
bears separate distribution and/or shareholder servicing fees.
Each class of shares has equal rights as to earnings, assets, and voting
privileges except that each class bears different distribution expenses.
Each class of shares has exclusive voting rights with respect to matters
that affect just that class. Income, expenses (other than expenses
attributable to a specific class), and realized and unrealized gains or
losses on investments are allocated to each class of shares based upon its
relative net assets.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by
the Fund in the preparation of the financial statements. The policies are
in conformity with generally accepted accounting principles. The
preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
SECURITIES VALUATION:
Investments of the Government Assets Fund, the Liquid Assets Fund and the
Municipal Assets Fund (the "money market funds") are valued at amortized
cost, which approximates market value. Under the amortized cost method of
valuation, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the money market funds may not (a)
purchase any instrument with a remaining maturity greater than 397 days
unless such investment is subject to a demand feature, or (b) maintain a
dollar-weighted-average portfolio maturity which exceeds 90 days.
Investments in common and preferred stocks, commercial paper, corporate
bonds, municipal bonds, U.S. Government securities and U.S. Government
agency securities of the Vintage Limited Term Bond Fund, the Vintage Bond
Fund, the Vintage Income Fund, the Vintage Municipal Bond Fund, the Vintage
Balanced Fund, the Vintage Equity Fund and the Vintage Aggressive Growth
Fund (collectively the "variable net asset funds") are valued at their
market values determined on the basis of the latest available bid quotation
in the principal market (closing sales prices if the principal market is an
exchange) in which such securities are normally traded. Fixed income
securities held in the variable net asset funds are valued on the basis of
valuations furnished by a pricing service that utilizes electronic data
processing techniques to determine valuations for normal institutional
sized trading units of fixed income securities without regard to sale or
bid prices when such valuations are believed to more accurately reflect the
fair market value of such institutional securities. Otherwise sale or bid
prices are used. Fixed income securities having maturities of 60 days or
less are valued by the amortized cost method. Investments in investment
companies are valued at their respective net asset values as reported by
such companies. Securities, including restricted securities, for which
market quotations are not readily available, are valued at fair market
value as determined in good faith by the investment advisor under the
supervision of the Fund's Board of Directors. The difference between the
cost and market values of investments held by the variable net asset funds
is reflected as either unrealized appreciation or depreciation.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold ("trade date"). Interest income is recognized on the
accrual basis. Original issue discounts and premiums on securities
purchased are amortized over the expected life of the respective
securities. Dividends are recorded on the ex-dividend date. Gains or losses
realized on sales of securities are determined on the identified cost
basis.
REPURCHASE AGREEMENTS:
The Fund may engage in repurchase agreements with financial institutions
such as banks, brokers, or dealers that the investment advisor, Investors
Management Group ("IMG"), deems creditworthy under guidelines approved by
the Fund's Board of Directors, subject to the seller's agreement to
repurchase such securities at a mutually agreed-upon date and price. An
independent custodian must receive delivery of the underlying securities.
The market value of these securities (including accrued interest) on
acquisition date is required to be an amount equal to 102% of the resale
price, and will not be less than 100% of the resale price over the term of
the agreement. The repurchase price generally equals the price paid plus
interest negotiated on the basis of current short-term rates, which may be
more or less than the rate on the underlying portfolio securities. The
seller, under an agreement to repurchase, is required to maintain, with the
Fund's custodian, the value of collateral held pursuant to the agreement at
not less than the repurchase price (including accrued interest). Securities
subject to repurchase agreements are held by the Fund's custodian, another
qualified custodian or in the Federal Reserve/Treasury book-entry system.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
LOAN CERTIFICATES:
The Liquid Assets Fund may invest in FmHA Guaranteed Loan Certificates
which represent interests in the guaranteed portion of Farmer's Home
Administration ("FmHA") loans issued by one or more guaranteed loan trusts
subject to repurchase on no more than 5 business days' written notice. The
Loan Certificates are diversified through limitations on certificates sold
by any one individual bank.
TRUST CERTIFICATES:
The Liquid Assets Fund may invest in U. S. Government Guaranteed Student
Loans (the Trust) which represent interests in student loans sold by
certain Iowa banks subject to repurchase, on no more than 7 days written
notice. The Trust and, accordingly, the Trust Certificates are diversified
through a limitation on certificates sold by any individual bank. Each
individual bank may not sell more than 5 percent of the outstanding Trust
Certificates.
SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED-DELIVERY BASIS:
Each fund may purchase securities on a when-issued or delayed-delivery
basis. When-issued securities are securities purchased with delivery to
occur at a later date at a stated price and/or yield, thereby, involving
the risk that the price and/or yield obtained may be more or less than
those available in the market when delivery takes place. At the time a Fund
makes commitment to purchase a security on a when-issued basis, the Fund
records the transaction and reflects the value of the security in
determining net asset value. A segregated account is established and the
Fund maintains cash and marketable securities at least equal in value to
commitments for when-issued securities. At March 31, 1998 no such purchase
commitments were outstanding.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the Government Assets Fund, the Liquid Assets Fund and the Municipal
Assets Fund. Dividends from net investment income are declared and paid
monthly for the Vintage Income Fund and the Vintage Municipal Bond Fund.
Dividends from net investment income are declared and paid quarterly for
the Vintage Limited Term Bond Fund, the Vintage Bond Fund, the Vintage
Balanced Fund, the Vintage Equity Fund and the Vintage Aggressive Growth
Fund. Distributable net realized capital gains, if any, are declared and
distributed at least annually for each of the Funds.
FEDERAL TAXES:
The Fund's policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
taxable income to shareholders in amounts that will avoid or minimize
federal income or excise taxes of the Fund. Net investment income and net
realized gains (losses) for the Funds may differ for financial statement
and tax purposes. The character of distributions made during the year from
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing
of dividend distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gains (losses) were
recorded by the Funds. It is unlikely the Board of Directors will authorize
a distribution of any net realized capital gains until the available
capital loss carryover has been offset or expires.
On the statement of assets and liabilities, as a result of permament
book-to-tax differences, paid-in capital, undistributed net investment
income, and accumulated net realized gains (losses) on investment
transactions have been increased (decreased) in reclassification
adjustments as follows:
UNDISTRIBUTED ACCUMULATED
PAID-IN NET INVESTMENT NET REALIZED
CAPITAL INCOME GAINS (LOSSES)
------- ------ --------------
Government Assets Fund $ (15,477) 15,477 ----
Limited Term Bond Fund $ (12) 12 ----
Bond Fund $ ---- 21,335 (21,335)
Income Fund $ (100,829) 100,829 ----
Municipal Bond Fund $ (8) 8 ----
Balanced Fund $ (320) 320 ----
Equity Fund $ (203,074) 386,290 (183,216)
Aggressive Growth Fund $ (515,951) 567,712 (51,761)
EXPENSES:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Expenses relating to the Funds collectively are prorated to
the Funds on the basis of each Fund's relative net assets.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
period ended March 31, 1998 are as follows:
PURCHASES PROCEEDS FROM SALES
--------- -------------------
Limited Term Bond Fund...............$ 27,086,508 27,860,319
Bond Fund............................$ 13,583,204 12,256,133
Income Fund..........................$ 47,576,222 33,014,431
Municipal Bond Fund..................$ 16,141,691 16,405,175
Balanced Fund........................$ 41,248,438 22,904,309
Equity Fund..........................$ 279,787,987 273,017,067
Aggressive Growth Fund...............$ 63,628,188 39,789,759
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
4. RELATED PARTY TRANSACTIONS:
Under terms of a prior investment advisory agreement that ended February
13, 1998, the Fund paid IMG a fee for management of the Fund's assets. The
annual fees for such services were 0.50 percent of the average daily net
assets of the IMG Core Stock Fund and 0.30 percent of the average daily net
assets of the IMG Bond Fund. Also under the terms of prior investment
advisory agreements that ended February 13, 1998, the predecessor funds,
Liquid Assets Fund and Municipal Assets Fund paid IMG fees for management
of assets at an annual rate of 0.25 percent of average daily assets up to
$200 million and at a sliding rate from 0.24 percent to 0.20 percent of
average daily assets exceeding $200 million. Also under the terms of a
prior investment advisory agreement that ended February 13, 1998,
investment advisory services were provided to the predecessor AMCORE
Vintage Mutual Funds by AMCORE Capital Management, Inc. at annual rates as
follows:
AMCORE Vintage U.S. Government Obligations Fund 0.40 percent
AMCORE Vintage Fixed Total Return Fund 0.75 percent
AMCORE Vintage Fixed Income Fund 0.60 percent
AMCORE Vintage Intermediate Tax-Free Fund 0.60 percent
AMCORE Vintage Balanced Fund 0.75 percent
AMCORE Vintage Equity Fund 0.75 percent
AMCORE Vintage Aggressive Growth Fund 0.95 percent
Effective February 14, 1998, the Fund entered into a new investment
advisory agreement with IMG. Under the terms of the investment advisory
agreement, IMG is entitled to receive fees computed daily based on a
percentage of the average daily net assets of each Fund as follows:
Government Assets Fund 0.40 percent
Liquid Assets Fund 0.35 percent
Municipal Assets Fund 0.35 percent
Vintage Limited Term Bond Fund 0.60 percent
Vintage Bond Fund 0.55 percent
Vintage Income Fund 0.60 percent
Vintage Municipal Bond Fund 0.60 percent
Vintage Balanced Fund 0.75 percent
Vintage Equity Fund 0.75 percent
Vintage Aggressive Growth Fund 0.95 percent
Under the terms of a prior administrative services agreement that ended
February 13, 1998, the IMG Mutual Funds paid IMG to provide certain
information and administrative services to the Fund. The annual fees for
such services ranged from 0.10 percent to 0.25 percent of average daily net
assets, depending on the class of shares owned. Also under the terms of
prior administrative services agreements that ended February 13, 1998, the
predecessor funds, Liquid Assets Fund and Municipal Assets Fund paid IMG
fees for such services at an annual rate of 0.035 percent of average daily
assets.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
Effective February 14, 1998, the Funds entered into a management and
administration agreement with IMG pursuant to which the Funds pay
administrative fees at an annual rate of 0.21 percent of the average daily
net assets for the Government Assets Fund, 0.06 percent of the average
daily net assets for the Liquid Assets Fund and Municipal Assets Fund and
0.26 percent of the average daily net assets for the Vintage Limited Term
Bond Fund, the Vintage Bond Fund, the Vintage Income Fund, the Vintage
Municipal Bond Fund, the Vintage Balanced Fund, the Vintage Equity Fund and
the Vintage Aggressive Growth Fund.
Under a prior shareholder services plan, the Liquid Assets Fund and the
Municipal Assets Fund were authorized to pay fees not to exceed an annual
rate of 0.25 percent of the average daily net asset value invested in Trust
Shares of each Fund to compensate financial service firms for servicing of
shareholder accounts.
Effective February 14, 1998, the Fund has adopted an Administrative
Services Plan (the "Services Plan") pursuant to which each Fund is
authorized to pay compensation to banks and other financial institutions
(each a "Participating Organization"), which may include AMCORE Financial,
Inc., its correspondent and affiliated banks, which agree to provide
certain ministerial, recordkeeping and/or administrative support services
for their customers or account holders (collectively, "customers") who are
beneficial or record owner of Shares of that Fund. In consideration for
such services, a Participating Organization receives a fee from a Fund,
computed daily and paid monthly, at an annual rate of up to 0.25 percent of
the average daily net asset value of Shares of that Fund owned beneficially
or of record by such Participating Organization's customers for whom the
Participating Organization provides such services.
Under the terms of a prior distribution agreement that ended February 13,
1998, certain of the Funds paid IMG Financial Services, Inc. as distributor
for the marketing and distribution of the shares of the Fund. The fees for
such services for the IMG Core Stock Fund were 0.40 percent and 0.15
percent of the average daily net assets of the Advisor and Select Shares,
respectively. Fees paid by the IMG Bond Fund were 0.25 percent and 0.15
percent of the average daily net assets of the Advisor and Select Shares,
respectively. Likewise, under the terms of prior distribution agreements
that ended February 13, 1998, IMG Financial Services, Inc. received
distribution fees at an annual rate of 0.75 percent for Sweep Shares of the
Liquid Assets Fund and 0.50 percent for S2 Shares of the Liquid Assets Fund
and Sweep Shares of the Municipal Assets Fund. Under terms of a prior
distribution agreement which ended February 13, 1998, the AMCORE Vintage
Mutual Funds were authorized to pay or reimburse BISYS Fund Services
Limited Partnership, as distributor, a periodic amount, calculated at an
annual rate not to exceed 0.25 percent of the average daily net assets of
each of the Funds. No amounts were paid under the terms of this agreement.
BISYS Fund Services Limited Partnership serves as distributor to the Fund
pursuant to the Distribution Agreement effective February 14, 1998. The
distributor receives no compensation under the Distribution Agreement with
the Fund, but may receive compensation under a distribution and Shareholder
Service Plan (the "Plan") adopted pursuant to Rule 12b-1 under the 1940 Act
under which the Funds are authorized to pay the distributor for payments it
makes to Participating Organizations. As authorized by the Plan, the
distributor will enter into Shareholder Agreements with Participating
Organizations, including AMCORE Financial, Inc., or its affiliates,
pursuant to which the Participating Organization agrees to provide certain
administrative and shareholder support services in connection with Shares
of a Fund purchased and held by customers of the Participating
Organization. The distributor will be compensated by a Fund up to the
amount of any payments it makes to Participating Organizations under the
Rule 12b-1 Agreement. The maximum fee is 0.50 percent on S Shares of the
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
Liquid Assets Fund and 0.25 percent on all other Classes and Funds.
Currently, such fees are limited to 0.40 percent for S Shares of the Liquid
Assets Fund, 0.15 percent for S2 Shares of the Liquid Assets Fund, 0.15
percent for S Shares of the Municipal Assets Fund and 0.00 percent for all
other Classes and Funds. However, IMG as advisor and administrator of the
Fund may in its sole discretion make payments to the distributor to
supplement shareholder fees paid by the Fund up to the maximum fee approved
by the Plan without further notice to shareholders and at no cost to the
Fund.
IMG also serves as the Fund's transfer agent to certain classes of the
Government Assets, Liquid Assets and Municipal Assets Funds, pursuant to a
Transfer Agency Agreement with the Funds and receives a fee for such
services. BISYS Fund Services, Inc., serves as transfer agent to the other
classes and Funds pursuant to a Transfer Agency Agreement with the Funds
and receives a fee for such services. IMG also provides fund accounting
services for the Funds pursuant to a Fund Accounting Agreement and receives
a fee for such services.
Information regarding these transactions is as follows for the period ended
March 31, 1998:
<TABLE>
<CAPTION>
GOVERNMENT MUNICIPAL LIQUID
ASSETS FUND ASSETS FUND ASSETS FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee (percentage of average net assets) .40% .25% .27%
ADMINISTRATION FEES:
Annual fee (percentage of average net assets) .20% .07% .07%
DISTRIBUTION AND ADMINISTRATIVE SERVICE FEES:
Annual fee (percentage of average net assets) .25% .29% .60%
<CAPTION>
LIMITED TERM BOND INCOME
BOND FUND FUND FUND
--------- ---- ----
INVESTMENT ADVISORY FEES:
Annual fee (percentage of average net assets) .73% .31% .60%
ADMINISTRATION FEES:
Annual fee (percentage of average net assets) .21% .22% .21%
DISTRIBUTION AND ADMINISTRATIVE SERVICE FEES:
Annual fee (percentage of average net assets) .49% .22% .49%
<CAPTION>
MUNICIPAL BOND BALANCED EQUITY
FUND FUND FUND
---- ---- ----
INVESTMENT ADVISORY FEES:
Annual fee (percentage of average net assets) .60% .75% .75%
ADMINISTRATION FEES:
Annual fee (percentage of average net assets) .21% .21% .21%
DISTRIBUTION AND ADMINISTRATIVE SERVICE FEES:
Annual fee (percentage of average net assets) .49% .47% .50%
</TABLE>
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1998
AGGRESSIVE
GROWTH FUND
-----------
INVESTMENT ADVISORY FEES:
Annual fee (percentage of average net assets) .95%
ADMINISTRATION FEES:
Annual fee (percentage of average net assets) .21%
DISTRIBUTION AND ADMINISTRATIVE SERVICE FEES:
Annual fee (percentage of average net assets) .48%
5. FEDERAL INCOME TAXES:
For federal income tax purposes, the following Funds have capital loss
carryforwards as of March 31, 1998, which are available to offset future
capital gains, if any:
AMOUNT EXPIRES
------ -------
Government Assets Fund $ 16,387 2001-2002
Limited Term Bond Fund $ 133,640 2004
Income Fund $ 2,399,611 2002-2005
6. FEDERAL INCOME TAX INFORMATION:
During the year ended March 31, 1998, the Funds declared long-term capital
distributions in the following amounts:
28% GAINS 20% GAINS
--------- ---------
Bond Fund $ ---- 88,804
Municipal Bond Fund $ ---- 62,080
Balanced Fund $ 237,794 804,551
Equity Fund $ 17,484,974 29,540,214
Aggressive Growth Fund $ 1,349,453 983,392
For the taxable year ended March 31, 1998, the following percentages of
income dividends paid by the Funds qualify for the dividends received
deduction available to corporations:
QUALIFIED
DIVIDEND INCOME
---------------
Balanced Fund 17.0%
Equity Fund 34.2%
Aggressive Growth Fund 11.7%
During the year ended March 31, 1998, the Municipal Bond Fund declared
$1,733,219 of tax-exempt income distributions and during the nine month
period ended March 31, 1998, the Municipal Assets Fund declared $755,733 of
tax-exempt income distributions.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
---------------------------------------------- --------------------------------------
FROM NET
NAV NET NET REALIZED/ TOTAL FROM FROM NET REALIZED AND TOTAL
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT UNREALIZED DIVIDENDS AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ------ ------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND "T" SHARES
Year Ended March 31, 1998 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1997 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1996 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1995 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Year Ended March 31, 1994 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Dec. 21, 1992 to March 31, 1993* $ 1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01)
LIQUID ASSETS FUND "S" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1997 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1996 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1995 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1994 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1993 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1992 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Year Ended June 30, 1991 $ 1.00 0.06 0.00 0.06 (0.06) 0.00 (0.06)
Year Ended June 30, 1990 $ 1.00 0.07 0.00 0.07 (0.07) 0.00 (0.07)
Year Ended June 30, 1989 $ 1.00 0.08 0.00 0.08 (0.08) 0.00 (0.08)
Year Ended June 30, 1988 $ 1.00 0.06 0.00 0.06 (0.06) 0.00 (0.06)
LIQUID ASSETS FUND "S2" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
February 27, 1997 to June 30, 1997* $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
LIQUID ASSETS FUND "T" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
January 2, 1997 to June 30, 1997* $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
LIQUID ASSETS FUND "I" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
October 29, 1996 to June 30, 1997* $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
MUNICIPAL ASSETS FUND "S" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended June 30, 1997 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1996 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1995 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1994 $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended June 30, 1993 $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended June 30, 1992 $ 1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1991 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Year Ended June 30, 1990 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1989 $ 1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1988 $ 1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
</TABLE>
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the rations would have
been as indicated.
(a) Not annualized
(b) Annualized
CONTINUED
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURN/RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------
RATIO OF RATIO OF INVEST- RATIO OF RATIO OF NET IN-
NAV NET ASSETS EXPENSES TO MENT INCOME EXPENSES VESTMENT INCOME
END TOTAL END OF PERIOD AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE
OF PERIOD RETURN (000 OMITTED) NET ASSETS NET ASSETS NET ASSETS** NET ASSETS**
--------- ------ ------------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND "T" SHARES
Year Ended March 31, 1998 $1.00 4.72% $155,130 0.73% 4.79% 0.98% 4.54%
Year Ended March 31, 1997 $1.00 4.62% $158,698 0.76% 4.53% 1.01% 4.28%
Year Ended March 31, 1996 $1.00 5.24% $153,836 0.54% 5.08% 0.72% 4.90%
Year Ended March 31, 1995 $1.00 4.32% $137,888 0.50% 4.26% 0.98% 3.78%
Year Ended March 31, 1994 $1.00 2.73% $105,345 0.56% 2.70% 1.02% 2.23%
Dec. 21, 1992 to March 31, 1993* $1.00 0.75%(a) $ 87,928 0.58%(b) 2.68%(b) 1.14%(b) 2.12%(b)
LIQUID ASSETS FUND "S" SHARES
Nine Months Ended March 31, 1998 $1.00 3.43%(a) $69,514 1.20%(b) 4.57%(b) ---- ----
Year Ended June 30, 1997 $1.00 4.46% $60,663 1.20% 4.46% ---- ----
Year Ended June 30, 1996 $1.00 4.68% $179,633 1.20% 4.68% ---- ----
Year Ended June 30, 1995 $1.00 4.66% $167,085 1.20% 4.66% ---- ----
Year Ended June 30, 1994 $1.00 2.66% $141,018 1.18% 2.66% ---- ----
Year Ended June 30, 1993 $1.00 2.72% $123,949 1.16% 2.72% ---- ----
Year Ended June 30, 1992 $1.00 4.37% $117,238 1.16% 4.37% ---- ----
Year Ended June 30, 1991 $1.00 6.31% $111,405 1.15% 6.31% ---- ----
Year Ended June 30, 1990 $1.00 7.40% $104,014 1.16% 7.40% ---- ----
Year Ended June 30, 1989 $1.00 7.62% $93,335 1.17% 7.62% ---- ----
Year Ended June 30, 1988 $1.00 5.74% $ 73,525 1.15% 5.74% ---- ----
LIQUID ASSETS FUND "S2" SHARES
Nine Months Ended March 31, 1998 $1.00 3.68%(a) $ 5,453 0.87%(b) 4.91%(b) ---- ----
February 27, 1997 to June 30, 1997* $1.00 1.66%(a) $ 1,773 0.85%(b) 4.79%(b) 0.95% 4.69%
LIQUID ASSETS FUND "T" SHARES
Nine Months Ended March 31, 1998 $1.00 3.81%(a) $16,147 0.70%(b) 5.07%(b) ---- ----
January 2, 1997 to June 30, 1997* $1.00 2.51%(a) $17,859 0.70%(b) 4.96%(b) ---- ----
LIQUID ASSETS FUND "I" SHARES
Nine Months Ended March 31, 1998 $1.00 3.98%(a) $13,729 0.47%(b) 5.31%(b) ---- ----
October 29, 1996 to June 30, 1997* $1.00 3.51%(a) $ 2,356 0.45%(b) 5.19%(b) ---- ----
MUNICIPAL ASSETS FUND "S" SHARES
Nine Months Ended March 31, 1998 $1.00 2.13%(a) $ 7,102 0.94%(b) 2.84%(b) ---- ----
Year Ended June 30, 1997 $1.00 2.90% $ 4,664 0.93% 2.90% 1.15% 2.68%
Year Ended June 30, 1996 $1.00 2.64% $10,146 1.48% 2.64% ---- ----
Year Ended June 30, 1995 $1.00 2.53% $16,130 1.38% 2.53% ---- ----
Year Ended June 30, 1994 $1.00 1.53% $21,355 1.35% 1.53% ---- ----
Year Ended June 30, 1993 $1.00 1.69% $23,764 1.35% 1.69% ---- ----
Year Ended June 30, 1992 $1.00 3.06% $29,670 1.37% 3.06% ---- ----
Year Ended June 30, 1991 $1.00 4.40% $26,683 1.39% 4.40% ---- ----
Year Ended June 30, 1990 $1.00 4.96% $15,077 1.63% 4.96% ---- ----
Year Ended June 30, 1989 $1.00 5.10% $12,619 1.50% 5.10% ---- ----
Year Ended June 30, 1988 $1.00 3.94% $ 14,528 1.52% 3.94% ---- ----
</TABLE>
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the rations would have
been as indicated.
(a) Not annualized
(b) Annualized
CONTINUED
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
---------------------------------------------- --------------------------------------
FROM NET
NAV NET NET REALIZED/ TOTAL FROM FROM NET REALIZED AND TOTAL
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT UNREALIZED DIVIDENDS AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ------ ------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
MUNICIPAL ASSETS FUND "T" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
January 2, 1997 to June 30, 1997* $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
MUNICIPAL ASSETS FUND "I" SHARES
Nine Months Ended March 31, 1998 $ 1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
March 27, 1997 to June 30, 1997* $ 1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01)
LIMITED TERM BOND FUND
Year Ended March 31, 1998 $ 9.69 0.46 0.35 0.81 (0.51)(c) ---- (0.51)
Year Ended March 31, 1997 $ 9.89 0.50 (0.20) 0.30 (0.50) ---- (0.50)
June 15, 1995 to March 31, 1996* $10.00 0.44 (0.11) 0.33 (0.43) (0.01) (0.44)
BOND FUND - INVESTOR SHARES
July 7, 1995 to April 5, 1996*** $10.00 0.43 (0.14) 0.29 (0.41) (0.01) (0.42)
BOND FUND - SELECT SHARES
Eleven Months Ended March 31, 1998 $ 9.82 0.66 0.33 0.99 (0.66) (0.29) (0.95)
Year Ended April 30, 1997 $ 9.78 0.62 0.05 0.67 (0.62) 0.00 (0.62)
July 7, 1995 to April 30, 1996* $10.00 0.49 (0.28) 0.21 (0.43) (0.01) (0.43)
BOND FUND - INSTITUTIONAL SHARES
May 1, 1997 to Feb. 13, 1998**** $ 9.82 0.52 0.47 0.99 (0.63) (0.17) (0.80)
Year Ended April 30, 1997 $ 9.79 0.64 0.04 0.68 (0.65) 0.00 (0.65)
July 7, 1995 to April 30, 1996* $10.00 0.49 (0.25) 0.24 (0.44) (0.01) (0.45)
INCOME FUND
Year Ended March 31, 1998 $ 9.70 0.50 0.38 0.88 (0.54)(c) 0.00 (0.54)
Year Ended March 31, 1997 $ 9.93 0.54 (0.24) 0.30 (0.53) 0.00 (0.53)
Year Ended March 31, 1996 $ 9.71 0.61 0.23 0.84 (0.62) 0.00 (0.62)
Year Ended March 31, 1995 $ 9.92 0.54 (0.22) 0.32 (0.53) 0.00 (0.53)
Year Ended March 31, 1994 $10.28 0.59 (0.33) 0.26 (0.59) (0.03) (0.62)
December 15, 1992 to 31, 1993* $10.00 0.18 0.27 0.45 (0.17) 0.00 (0.17)
MUNICIPAL BOND FUND
Year Ended March 31, 1998 $10.22 0.40 0.40 0.80 (0.40) (0.02) (0.42)
Year Ended March 31, 1997 $10.27 0.38 (0.05) 0.33 (0.38) 0.00 (0.38)
Year Ended March 31, 1996 $ 9.97 0.43 0.30 0.73 (0.43) 0.00 (0.43)
Year Ended March 31, 1995 $ 9.91 0.43 0.07 0.50 (0.43) (0.01) (0.44)
Year Ended March 31, 1994 $10.05 0.42 (0.13) 0.29 (0.42) (0.01) (0.43)
Feb. 16, 1993 to March 31, 1993* $10.00 0.05 0.04 0.09 (0.04) 0.00 (0.04)
</TABLE>
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have
been as indicated.
*** Investor Shares were converted to Select Shares on April 5, 1996
at which time Investor Shares ceased to be issued.
**** Institutional Shares were converted to Select Shared on Februery
13, 1998 at which time the Bond Fund became a single class fund.
(a) Not annualized
(b) Annualized
(c) Includes .04 per share and .02 per share of distributions in excess
of net investment income for Limited Term Bond Fund and Income
Fund, respectively, for the year ended March 31, 1998.
CONTINUED
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURN/RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------
RATIO OF RATIO OF INVEST- RATIO OF RATIO OF NET IN-
NAV NET ASSETS EXPENSES TO MENT INCOME EXPENSES VESTMENT INCOME
END TOTAL END OF PERIOD AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE PORTFOLIO
OF PERIOD RETURN (000 OMITTED) NET ASSETS NET ASSETS NET ASSETS** NET ASSETS** TURNOVER
--------- ------ ------------- ---------- ---------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MUNICIPAL ASSETS FUND "T" SHARES
Nine Months Ended March 31, 1998 $ 1.00 2.31%(a) $ 12,005 0.69%(b) 3.09%(b) ---- ---- N/A
January 2, 1997 to June 30, 1997* $ 1.00 1.61%(a) $ 25,036 0.66%(b) 3.17%(b) 0.90% 2.93% N/A
MUNICIPAL ASSETS FUND "I" SHARES
Nine Months Ended March 31, 1998 $ 1.00 2.49%(a) $ 20,010 0.46%(b) 3.32%(b) ---- ---- N/A
March 27, 1997 to June 30, 1997* $ 1.00 1.20%(a) $ 7 0.41%(b) 3.42%(b) 0.65% 3.18% N/A
LIMITED TERM BOND FUND
Year Ended March 31, 1998 $ 9.99 8.51%(a) $ 37,777 1.35% 4.60% 1.60% 4.35% 80.26%
Year Ended March 31, 1997 $ 9.69 3.13% $ 38,835 1.40% 5.18% 1.65% 4.93% 70.63%
June 15, 1995 to March 31, 1996* $ 9.89 3.40%(a) $ 41,178 1.18%(b) 5.53%(b) 1.18%(b) 5.53%(b) 69.30%
BOND FUND - INVESTOR SHARES
July 7, 1995 to April 5, 1996*** $ 9.87 2.91%(a) $ 0 1.00%(b) 6.02%(b) ---- ---- 60.43%
BOND FUND - SELECT SHARES
Eleven Months Ended March 31, 1998 $ 9.86 10.30%(a) $ 7,213 0.88%(b) 7.66%(b) ---- ---- 225.79%
Year Ended April 30, 1997 $ 9.83 6.97% $ 3,201 0.83% 6.16% ---- ---- 42.22%
July 7, 1995 to April 30, 1996* $ 9.78 2.10%(a) $ 3,642 0.80%(b) 6.24%(b) ---- ---- 60.43%
BOND FUND - INSTITUTIONAL SHARES
May 1, 1997 to Feb. 13, 1998**** $10.01 10.11% $ 1,970 0.65% 6.76% ---- ---- 42.22%
Year Ended April 30, 1997 $ 9.82 7.19% $ 4,360 0.63% 6.36% ---- ---- 42.22%
July 7, 1995 to April 30, 1996* $ 9.79 2.27%(a) $ 4,363 0.60%(b) 6.40%(b) ---- ---- 60.43%
INCOME FUND
Year Ended March 31, 1998 $10.04 9.31% $104,604 1.15% 5.04% 1.40% 4.79% 52.03%
Year Ended March 31, 1997 $ 9.70 3.14% $ 92,031 1.20% 5.52% 1.45% 5.27% 59.70%
Year Ended March 31, 1996 $ 9.93 8.74% $ 84,752 0.97% 5.77% 0.97% 5.77% 113.25%
Year Ended March 31, 1995 $ 9.71 3.46% $ 81,673 0.94% 5.53% 1.22% 5.26% 32.38%
Year Ended March 31, 1994 $ 9.92 2.43% $ 90,301 0.51% 5.74% 1.24% 5.01% 32.03%
December 15, 1992 to 31, 1993* $10.28 4.54%(a) $ 50,127 0.29%(b) 6.58%(b) 1.34%(b) 5.53%(a) 17.44%
MUNICIPAL BOND FUND
Year Ended March 31, 1998 $10.60 7.89% $ 48,282 1.21% 3.76% 1.46% 3.51% 36.60%
Year Ended March 31, 1997 $10.22 3.22% $ 45,164 1.28% 3.68% 1.53% 3.43% 21.00%
Year Ended March 31, 1996 $10.27 7.43% $ 42,436 0.75% 4.21% 1.02% 3.94% 14.21%
Year Ended March 31, 1995 $ 9.97 5.29% $ 30,717 0.73% 4.42% 1.30% 3.84% 5.77%
Year Ended March 31, 1994 $ 9.91 2.79% $ 32,983 0.57% 4.19% 1.38% 3.37% 13.26%
Feb. 16, 1993 to March 31, 1993* $10.05 0.90%(a) $ 13,043 0.42%(b) 4.31%(b) 1.47%(b) 3.26%(b) 0.00%
</TABLE>
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have
been as indicated.
*** Investor Shares were converted to Select Shares on April 5, 1996
at which time Investor Shares ceased to be issued.
**** Institutional Shares were converted to Select Shared on Februery
13, 1998 at which time the Bond Fund became a single class fund.
(a) Not annualized
(b) Annualized
(c) Includes .04 per share and .02 per share of distributions in excess
of net investment income for Limited Term Bond Fund and Income
Fund, respectively, for the year ended March 31, 1998.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
---------------------------------------------- --------------------------------------
FROM NET
NAV NET NET REALIZED/ TOTAL FROM FROM NET REALIZED AND TOTAL
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT UNREALIZED DIVIDENDS AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ------ ------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCED FUND
Year Ended March 31, 1998 $11.72 0.21 3.67 3.88 (0.21) (0.34) (0.55)
Year Ended March 31, 1997 $11.08 0.18 1.05 1.23 (0.18) (0.41) (0.59)
June 1, 1995 to March 31, 1996* $10.00 0.24 1.08 1.32 (0.24) 0.00 (0.24)
EQUITY FUND "S" SHARES
Year Ended March 31, 1998 $16.58 0.00 7.19 7.19 (0.01) (2.71) (2.72)
Year Ended March 31, 1997 $14.48 0.05 2.60 2.65 (0.05) (0.50) (0.55)
Year Ended March 31, 1996 $11.44 0.13 3.27 3.40 (0.13) (0.23) (0.36)
Year Ended March 31, 1995 $10.05 0.15 1.41 1.56 (0.15) (0.02) (0.17)
Year Ended March 31, 1994 $10.20 0.19 (0.14) 0.05 (0.20) 0.00 (0.20)
Dec. 15, 1992 to March 31, 1993* $10.00 0.05 0.19 0.24 (0.04) 0.00 (0.04)
EQUITY FUND "T" SHARES
February 14, 1998 to March 31, 1998 $19.77 0.00 1.28 1.28 ---- ---- ----
AGGRESSIVE GROWTH FUND
Year Ended March 31, 1998 $11.90 (0.09) 5.61 5.52 0.00 (0.43) (0.43)
Year Ended March 31, 1997 $10.88 (0.06) 1.08 1.02 0.00 0.00 0.00
Sept. 29, 1995 to March 31, 1996* $10.00 0.00 0.90 0.90 0.00 (0.02) (0.02)
</TABLE>
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have
been as indicated.
(a) Not annualized
(b) Annualized
(c) Represents the dollar amount of commissions paid on portfolio
transactions divided by the total number of portfolio shares
purchsed and sold for which commissions were charged. Disclosure
is not required for period prior to the year ended March 31, 1997.
CONTINUED
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURN/RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------------------------
RATIO OF RATIO OF **RATIO OF **RATIO OF NET
NAV NET ASSETS EXPENSES INVESTMENT EXPENSES INVESTMENT AVERAGE
END TOTAL END OF PERIOD TO AVG INCOME TO AVG TO AVG INCOME TO AVG PORTFOLIO COMMISSIONS
OF PERIOD RETURN (000 OMITTED) NET ASSETS NET ASSETS NET ASSETS NET ASSETS TURNOVER RATE PAID(c)
--------- ------ ------------- ---------- ---------- ----------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCED FUND
Year Ended March 31, 1998 $15.05 33.46% $63,403 1.38% 1.58% 1.63% 1.33% 101.32% $0.0657
Year Ended March 31, 1997 $11.72 11.05% $32,012 1.55% 1.58% 1.80% 1.33% 38.35% $0.1039
June 1, 1995 to March 31, 1996* $11.08 13.29%(a) $13,516 1.32%(b) 2.66%(b) 1.32%(b) 2.66%(b) 61.72% $0.0000
EQUITY FUND "S" SHARES
Year Ended March 31, 1998 $21.05 45.54% $196,722 1.31% 0.08% 1.56% 0.33% 72.80% $0.0439
Year Ended March 31, 1997 $16.58 18.35% $309,669 1.33% 0.32% 1.58% 0.07% 37.08% $0.0677
Year Ended March 31, 1996 $14.48 29.96% $210,950 1.09% 0.96% 1.09% 0.96% 33.23% $0.0000
Year Ended March 31, 1995 $11.44 15.74% $149,233 1.07% 1.47% 1.35% 1.19% 20.54% $0.0000
Year Ended March 31, 1994 $10.05 0.45% $125,203 0.54% 1.97% 1.37% 1.15% 3.98% $0.0000
Dec. 15, 1992 to March 31, 1993* $10.20 2.45%(a) $74,720 0.23%(b) 2.40%(b) 1.43%(b) 1.20%(b) 0.00% $0.0000
EQUITY FUND "T" SHARES
February 14, 1998 to March 31, 1998 $21.05 6.40%(a) $275,245 1.19%(b) 0.63%(b) 1.44%(b) 0.38%(b) 72.80% $0.0439
AGGRESSIVE GROWTH FUND
Year Ended March 31, 1998 $16.99 46.82% $101,377 1.56% (0.74%) 1.81% (0.99%) 86.36% $0.0490
Year Ended March 31, 1997 $11.90 9.39% $49,413 1.63% (0.64%) 1.88% (0.89%) 45.14% $0.0941
Sept. 29, 1995 to March 31, 1996* $10.88 9.10%(a) $23,319 1.57%(b) 0.08%(b) 1.57%(b) 0.08%(b) 4.31% $0.0000
</TABLE>
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have
been as indicated.
(a) Not annualized
(b) Annualized
(c) Represents the dollar amount of commissions paid on portfolio
transactions divided by the total number of portfolio shares
purchsed and sold for which commissions were charged. Disclosure
is not required for period prior to the year ended March 31, 1997.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
The Shareholders and Board of Directors
Vintage Mutual Funds, Inc.:
We have audited the statements of assets and liabilities, including the
schedules of investments of the Government Assets Fund, Liquid Assets Fund,
Municipal Assets Fund, Vintage Limited Term Bond Fund, Vintage Bond Fund,
Vintage Income Fund, Vintage Municipal Bond Fund, Vintage Balanced Fund, Vintage
Equity Fund, and Vintage Aggressive Growth Fund (funds within Vintage Mutual
Funds, Inc.) as of March 31, 1998; the statements of operations, changes in net
assets and financial highlights for the year ended March 31, 1998 for the
Government Asset Fund, Vintage Limited Term Bond Fund, Vintage Income Fund,
Vintage Municipal Bond Fund, Vintage Balanced Fund, Vintage Equity Fund and
Vintage Aggressive Growth Fund; the statements of operations for the period from
July 1, 1997 to March 31, 1998 and the year ended June 30, 1997, the statements
of changes in net assets for the period from July 1, 1997 to March 31, 1998 and
each of the years in the two-years ended June 30, 1997 and the financial
highlights for each of the periods presented for the Liquid Assets Fund and
Municipal Assets Fund; the related statements of operations for the period from
May 1, 1997 to March 31, 1998 and the year ended April 30, 1997, the statements
of changes in net assets for the period from May 1, 1997 to March 31, 1998 and
each of the years in the two-years ended April 30, 1997 and the financial
highlights for each of the periods presented for the Vintage Bond Fund. The
statements of operations, changes in net assets and the financial highlights
presented for the periods ended or prior to March 31, 1997 for the Government
Asset Fund, Vintage Limited Term Bond Fund, Vintage Income Fund, Vintage
Municipal Bond Fund, Vintage Balanced Fund, Vintage Equity Fund and Vintage
Aggressive Growth Fund were audited by other auditors whose report thereon dated
May 9, 1997, expressed an unqualified opinion on these financial statements and
financial highlights. These financial statements and financial highlights are
the responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Investment securities held in custody were confirmed to us by the
custodian. As to securities purchased and sold but not received or delivered, we
requested confirmations from brokers, and where replies were not received, we
carried out other appropriate auditing procedures. An audit includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds constituting Vintage Mutual Funds, Inc. as of March 31,
1998, and the results of their operations, the changes in their net assets and
the financial highlights for each of the respective years or periods stated in
the first paragraph above, in conformity with generally accepted accounting
principles.
KPMG PEAT MARWICK LLP
DES MOINES, IOWA
May 8, 1998
<PAGE>
TABLE OF CONTENTS
PERFORMANCE REPORTS AND
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 5
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 37
STATEMENTS OF OPERATIONS
PAGE 41
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 44
NOTES TO FINANCIAL STATEMENTS
PAGE 53
FINANCIAL HIGHLIGHTS
PAGE 64
REPORT OF INDEPENDENT AUDITORS
PAGE 70
<PAGE>
SERVICE PROVIDERS
INVESTMENT ADVISORY AND
ADMINISTRATOR
Investors Management Group
2203 Grand Avenue
Des Moines, Iowa 50312
DISTRIBUTOR
BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Cline, Williams, Wright, Johnson
& Oldfather
1900 First Bank Building
Lincoln, Nebraska 68508
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
2500 Ruan Center
Des Moines, Iowa 50309
