VINTAGE MUTUAL FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 1999
<PAGE>
MESSAGE FROM THE PRESIDENT VINTAGE MUTUAL FUNDS, INC.
Dear Shareholders:
The six months ended September 30, 1999 was a successful period in the operation
of the Vintage mutual funds. Anxiety about the pace of economic growth and
uncertainty regarding moves by the Federal Reserve Board to adjust short-term
interest rates presented challenging asset management opportunities for the
Vintage Funds' managers. Throughout these volatile market conditions, the
Vintage Funds' portfolio managers worked hard and effectively managed your
invested funds to achieve excellent results.
A Tale of Two Markets
The first three months of the period witnessed a market focus on value stocks as
part of a sector rotational shift initiated at the end of 1999's first quarter.
The next three months of the period provided a growth stock resurgence, the
sector most often featured in the equity portion of affected Vintage Funds. The
relative ground lost to the S&P 500 earlier in the period was more than recouped
as the semi-annual period came to a close.
We continued to develop the proprietary internet presence for the Vintage Funds,
www.vintagefunds.com. We anticipate internet services will provide a greater
focus in the coming years and look forward to sharing our Vintage Funds internet
strategy with you in greater detail as time passes. Whether you are looking for
informative investment commentary, current Vintage Funds performance
information, assistance in determining your personal risk profile and possible
asset allocation target, or retirement or college education planning,
www.vintagefunds.com can provide helpful, timely assistance. We want to help you
to become a fully informed investor.
A View to the Future
As we enter the new millennium, we look forward to providing enhanced services
to each of our shareholders. We have recently compiled the results provided by a
comprehensive shareholder survey in which many of you were kind enough to
participate. Information from that effort will guide many of our developmental
decisions over the next year.
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 questions or require assistance, please call us at
1-800-438-6375.
Sincerely,
David W. Miles
President
- --------------------------------------------------------------------------------
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 PAST PERFORMANCE IS NOT PREDICTIVE OF FUTRE RESULTS,
AND THE COMPOSITION OF EACH FUND'S PORTFOLIO IS SUBJECT TO CHANGE.
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>
MESSAGE FROM THE INVESTMENT ADVISER VINTAGE MUTUAL FUNDS, INC.
Dear Shareholders:
It has been yet another year of opportunities and challenges for investors in
both bonds and stocks. Economic oracles here and abroad trumpet the arrival of
the "New Era" economy, heralding the cumulative technological advances of the
past quarter century. The technology revolution has certainly produced its share
of new millionaires, but can it also inoculate us against the ill effects of
future onsets of inflation and the business cycle? Perhaps only time will tell.
As the experts thrust and parry, something marvelous has in fact occurred over
the past few years. The current expansion is about to go in the record books as
the longest on record (we have predicted this to anyone that would listen for
several years). And it is different this time. This expansion has seen the
lowest unemployment rate in twenty-nine years evolve in tandem with very low
inflation-a juxtaposition never before seen. The markets have screamed their
approval!
What are the clues potentially pointing to a new environment? Growth has been
accelerating. Real U.S. Gross Domestic Product(GDP) has climbed to four percent
levels over the past year. Unemployment at 4.2% means labor is tight, even as
inflation remains tame at about two percent (climbing only recently from sub two
percent levels compliments of an oil price run-up and tobacco price hikes). Net
of the highly volatile food, energy and tobacco sectors, core inflation
continues to decline, falling to 1.6% to date, a thirty-four year low. Many
analysts discount these volatile price sectors over the short run, particularly
if they are believed to be out of the Fed's immediate influence.
Let's look a bit deeper. Many assign accommodation of the strong growth and low
inflation convergence to tremendous advances in computing power, empowering
individual workers and consumers. Indeed, roughly half of business fixed
investment-accounting for ten percent of GDP-has been the result of technology
upgrades this decade. Tech investment is captured in business equipment
spending. While real business capital equipment outlays have steadily risen
since the early 1990's, capital equipment spending ex-tech has actually declined
over the past five years.
Here's where "New" meets "Old". In the "New" tech sectors, business equipment
prices have been falling for years, sometimes dramatically, even as the tech
sector has experienced spectacular growth. In fact, partly due to meteoric jumps
in stock prices, the combined technology and communications services sectors of
the Standard & Poors stock index now account for thirty percent of the index!
During the same span, the old non-tech business equipment sector has shrunk.
This dynamic is not unique. Analysts observe that economic sectors enjoying the
greatest growth-that is contributing the most to GDP advances-are those with
downward trending pricing structures. Conversely, those sectors with little
pricing flexibility typically experience slow growth. On the inflation report
card, price declines have been magnified while price increases have been muted.
Another sign of this improved environment, reinforcing the New Era argument,
shows up in productivity figures. Prior to 1995, national advances in
productivity averaged roughly one percent. Since that time they have climbed to
above two percent. Productivity advances during the later stages of a business
expansion are-you guessed it-unprecedented. The power of compounding magnifies
what initially seems to be a small increase, strengthening over time if
sustained.
We return to the fundamental question. Is this genuinely a New Era, or simply
temporary cyclical improvement? No one really knows for sure. Much more data and
analysis will be needed to assess its permanence. Perhaps only time will tell.
Signs at this stage of the expansion are at least hopeful. Most likely this era
in enhanced computing, combined with other disinflationary forces, have at a
minimum prolonged the expansion and helped hold inflation in check.
To be sure, no one believes that the business cycle is extinct or that inflation
will never reoccur. But clients of asset managers that failed to observe that
new forces are at work and that the usual old patterns are at least be
temporarily delayed have been sorely disappointed-and have missed out on
spectacular market gains-since the mid-1990's. The Fed's next interest rate move
and the strength of today's market head winds may very well be dependant on the
outcome of these conflicting forces.
The managers of the Vintage Funds work hard every day to effectively invest your
assets. We appreciate your confidence and pledge to do our very best job for you
whatever the market presents.
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 low and consumer confidence high throughout
much of the semi-annual period ended September 30, 1999. Inflationary pressures
were predominantly under control, although recent increases in oil prices have
created some level of concern over commodity price inflationary pressure as we
move forward. International events are much less of a concern at present as many
of the world's significant economies have improved of late.
Looking forward, we anticipate a strong domestic economy and fairly stable to
possibly rising short-term interest rates as the Federal Reserve adopts an
inflation "wait-and-see" attitude.
THE GOVERNMENT ASSETS FUND
The Government Assets Fund continued to emphasize Agency discount notes with
about seventy-five percent of Fund assets invested in U.S. Agencies. The Fed
made the first tightening move of .25 percent at the end of June and followed
with a second similar size move in August. Short-term rates promptly increased
as well as yields in the Fund. As yields offered incentives to extend over
year-end, the Fund lengthened its maturity structure.
As of September 30, 1999 the Fund had an average maturity of 33 days.
THE LIQUID ASSET FUND
The Liquid Assets Fund continues to focus on strategies to provide higher yields
for shareholders. FmHA Trust Certificates have been added that offer rates that
adjust as a function of the prevailing Prime Rate. Appropriate corporate
securities are also being added to the portfolio that positively impact the
Fund's returns. Strategies to help smooth out yields over year-end are currently
being evaluated.
As of September 30, 1999 the Liquid Assets Fund was fully diversified across
authorized security sectors and had an average maturity of 57 days.
THE MUNICIPAL ASSETS FUND
The Municipal Assets Fund continued to diversify holdings throughout the
semi-annual period ended September 30, 1999. Overall pressure is expected to
affect short-term municipals at year-end as supply decreases. Any declines
should be temporary.
As of September 30, 1999 the Municipal Assets Fund had an average maturity of 52
days.
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 NOR GUARANTEED BY THE U.S.
GOVERNMENT.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
GOVERNMENT ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
U.S. GOVERNMENT AGENCY (88.72%):
Federal Agricultural Mortgage Corporation:
$10,000,000 5.25%*, 10/01/1999............................ $10,000,000
Federal Farm Credit Bank:
10,000,000 5.33%*, 10/20/1999............................ 9,972,450
Federal Home Loan Bank:
10,000,000 5.21%*, 11/05/1999............................ 9,950,125
10,000,000 5.35%*, 11/19/1999............................ 9,929,086
Federal Home Loan Mortgage Corporation
10,000,000 5.19%*, 10/04/1999............................ 9,995,783
10,000,000 5.28%*, 10/14/1999............................ 9,981,367
10,000,000 5.30%*, 10/15/1999............................ 9,979,855
10,000,000 5.16%*, 10/21/1999............................ 9,972,056
10,000,000 5.37%*, 11/26/1999............................ 9,918,644
8,000,000 5.68%*, 01/10/2000............................ 7,876,556
10,000,000 5.64%*, 01/20/2000............................ 9,832,267
Federal Home Loan Mortgage Assoc.:
10,000,000 5.19%*, 10/05/1999............................ 9,994,378
10,000,000 5.18%*, 10/08/1999............................ 9,990,181
10,000,000 5.34%*, 12/02/1999............................ 9,910,100
10,000,000 5.40%*, 12/09/1999............................ 9,899,183
-----------------
Total U.S. Government Agency................. 147,202,031
-----------------
REPURCHASE AGREEMENTS (11.73%):
Warburg Dillon Read:
19,467,885 5.23%, 10/1/1999
(Purchased on 9/30/99, proceeds
at maturity $19,470,713;
Collateralized by 19,823,000
Govt. Agencies, 2/02/00-7/15/17,
Market Value $19,858,726)................... 19,467,885
-----------------
Total Investments in Securities (100.45%)
(Cost--$166,669,916)......................... $166,669,916
Other Assets & Liabilities (-0.45%).......... (753,662)
-----------------
NET ASSETS (100.00%)......................... $165,916,254
=================
- ----------------
* Effective yield at date of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
LIQUID ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
U.S. GOVERNMENT AGENCY (8.00%):
Federal Farm Credit Bank:
$4,000,000 4.80%, 02/01/2000........................... $3,999,218
Federal Home Loan Bank:
250,000 5.95%, 10/20/1999........................... 250,080
250,000 5.87%, 10/22/1999........................... 250,071
5,000,000 4.90%, 12/01/1999........................... 5,000,964
Federal National Mortgage Assoc.:
4,500,000 7.68%, 11/22/1999........................... 4,517,071
1,140,000 4.78%, 11/30/1999........................... 1,139,807
-----------------
Total U.S. Government Agency 15,157,211
-----------------
U.S. TAXABLE MUNICIPAL BONDS (0.18%):
Westmoreland Co., PA:
350,000 5.35%**, 12/01/1999......................... 346,975
-----------------
Total Taxable Municipal Bonds 346,975
-----------------
LOAN CERTIFICATES--FMHA GUARANTEED LOAN CERTIFICATES (14.23%):
26,983,174 5.50% to 6.00%*, 10/01/99 to 12/30/33........ 26,983,174
-----------------
TRUST CERTIFICATES- -U.S. GOVT. GUARANTEED STUDENT LOANS (2.64%):
5,000,000 5.61%***, 12/21/1999.......................... 5,000,000
-----------------
BANKERS ACCEPTANCE (1.56%):
Key Bank:
3,000,000 5.73%**, 01/18/2000........................... 2,948,952
-----------------
COMMERCIAL PAPER (29.19%):
Co-op Tractor:
3,375,000 5.41%**, 10/08/1999........................... 3,371,456
1,650,000 5.41%**, 10/22/1999........................... 1,644,822
Eagle Funding:
3,000,000 5.39%**, 10/12/1999........................... 2,995,078
1,819,000 5.47%**, 10/22/1999........................... 1,813,217
Export Development Corporation:
3,000,000 5.32%**, 02/18/2000........................... 2,940,267
Franklin Resources:
4,400,000 5.45%**, 10/04/1999........................... 4,398,002
General Electric Capital:
3,000,000 5.29%**, 10/05/1999........................... 2,998,240
Grand Funding:
3,645,000 5.45%**, 10/20/1999........................... 3,634,554
McGraw-Hill:
2,500,000 5.19%**, 10/19/1999........................... 2,493,600
Merrill Lynch:
3,000,000 5.31%**, 10/14/1999........................... 2,994,269
Three Rivers Funding:
3,000,000 5.47%**, 10/14/1999........................... 2,994,085
Thunder Bay Funding:
4,000,000 5.38%**, 10/05/1999........................... 3,997,622
3,194,000 5.37%**, 10/12/1999........................... 3,188,788
Triple A1 Funding:
2,000,000 5.38%**, 10/08/1999........................... 1,997,923
5,343,000 5.36%**, 10/08/1999........................... 5,337,452
Wood Street Funding:
3,000,000 5.46%**, 10/13/1999........................... 2,994,550
2,545,000 5.35%**, 10/14/1999........................... 2,540,102
3,000,000 5.36%**, 10/22/1999........................... 2,990,672
-----------------
Total Commercial Paper 55,324,699
-----------------
* Interest rate fluctuates with prime rate. Put option subject to 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.
LIQUID ASSETS FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
CORPORATES (23.26%):
Albertson's Inc:
500,000 6.38%, 06/01/2000........................... 503,035
2,500,000 6.38%, 06/01/2000........................... 2,505,142
American General Financial:
2,850,000 8.00%, 02/15/2000........................... 2,880,915
500,000 8.00%, 02/15/2000........................... 504,923
American Home Products:
2,500,000 7.70%, 02/15/2000........................... 2,524,680
350,000 7.70%, 02/15/2000........................... 352,557
Associates Corporation:
282,000 5.25%, 03/30/2000........................... 281,523
400,000 6.69%, 06/15/2000........................... 402,428
Banc One Corp:
1,000,000 6.70%, 03/24/2000........................... 1,003,710
Bear Stearns:
4,000,000 6.56%, 06/20/2000........................... 4,020,399
CitiGroup Inc:
250,000 6.13%, 06/15/2000........................... 250,818
Ford Motor Credit:
1,000,000 8.38%, 01/15/2000........................... 1,007,884
1,000,000 6.38%, 04/15/2000........................... 1,006,102
1,000,000 6.65%, 08/01/2000........................... 1,007,163
GMAC:
500,000 7.50%, 04/11/2000........................... 505,056
1,000,000 7.50%, 06/30/2000........................... 1,012,841
H.J. Heinz Company:
1,000,000 6.75%, 10/15/1999........................... 1,000,000
Household Finance:
4,000,000 6.00%, 05/08/2000........................... 4,004,605
International Lease Finance:
1,000,000 7.00%, 05/15/2000........................... 1,007,017
Merrill Lynch:
2,000,000 8.25%, 11/15/1999........................... 2,007,782
1,921,000 8.38%, 02/09/2000........................... 1,939,144
Newell Company:
3,125,000 6.18%, 07/11/2000........................... 3,128,283
Salomon Inc:
500,000 6.05%, 06/15/2000........................... 501,231
Shawmut National Corporation:
1,150,000 8.63%, 12/15/1999........................... 1,157,971
Tele-Communications Inc:
3,000,000 7.38%, 02/15/2000........................... 3,024,069
U.S. Leasing International:
3,000,000 7.54%, 12/22/1999........................... 3,016,465
Walt Disney Company:
400,000 5.60%, 01/13/2000........................... 400,373
1,100,000 5.60%, 01/13/2000........................... 1,101,411
Weyerhaeuser Company:
2,000,000 8.90%, 04/19/2000........................... 2,031,697
-----------------
Total Corporates 44,089,224
-----------------
REPURCHASE AGREEMENTS (20.63%):
Bear Stearns:
39,112,468 5.35%, 10/01/1999,
(Purchased on 9/30/99, proceeds
at maturity $39,118,281;
Collateralized by $57,753,000
Government Agencies, 2/25/09-9/25/29,
market value $43,271,963)......................... 39,112,468
-----------------
Total Investments in Securities (99.69%)
(Cost--$188,962,703).................... $188,962,703
Other Assets and Liabilities (0.31%)......... 595,277
-----------------
NET ASSETS (100.00%)......................... $189,557,980
=================
* Interest rate fluctuates with prime rate. Put option subject to 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 PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
INDUSTRIAL DEVELOPMENT BONDS (2.79%):
Iowa (2.79%)
$169,618 Iowa HFA (Starr-Terry Project), 5.07%**, 05/15/2005 $169,618
829,381 Sioux City, IA (Handy Partnership), 4.57%**, 09/15/2004 829,381
226,151 Vinton, IA (Twin City Concrete), 4.61%**, 06/15/2002 226,151
----------------
Total Industrial Development Bonds 1,225,150
----------------
VARIABLE RATE DEMAND OBLIGATIONS (55.13%):
Alabama (2.28%)
1,000,000 North Alabama PCR DTN, 3.80%*, 12/01/2000 1,000,000
----------------
Arizona (5.69%)
1,500,000 Phoenix, AZ IDR 7-Day, 3.80%**, 10/15/2006 1,500,000
1,000,000 Apache Co., AZ IDA 7-Day, 3.80%**, 12/15/2018 1,000,000
----------------
2,500,000
----------------
Delaware (3.87%)
1,700,000 Delaware St Economic Dev 7-Day, 3.90%**, 10/01/2028 1,700,000
----------------
Florida (3.64%)
1,000,000 Martin Co., FL PCR DTN, 3.80%*, 09/01/2024 1,000,000
600,000 Putnam Co., FL PCR DTN, 3.80%*, 09/01/2024 600,000
----------------
1,600,000
----------------
Illinois (6.38%)
1,100,000 Chicago, IL G.O. 7-Day, 3.80%**, 01/01/2012 1,100,000
400,000 McCook, IL St. Andrew Rev 7-Day, 3.85%**, 12/01/2021 400,000
1,300,000 Illinois Health Fac Auth 7-Day, 3.75%**, 07/01/2028 1,300,000
----------------
2,800,000
----------------
Indiana (1.37%)
600,000 Rockport, IN PCR DTN, 3.90%*, 07/01/2025 600,000
----------------
Iowa (0.91%)
400,000 Iowa Finance Auth Rev 7-Day, 3.80%**, 08/15/2024 400,000
----------------
Kentucky (3.42%)
1,000,000 Kentucky Dev Finance Auth 7-Day, 3.80%**, 12/01/2015 1,000,000
500,000 Kentucky Econ Dev Fin Auth 7-Day, 3.77%**, 01/01/2022 500,000
----------------
1,500,000
----------------
Louisiana (1.37%)
600,000 Desoto Parish, LA PCR 7-Day, 3.60%**, 07/01/2018 600,000
----------------
Michigan (3.19%)
500,000 Michigan St HFA (St. Mary's) 7-Day, 3.75%**, 07/01/2017 500,000
400,000 Michigan State PCR DTN, 3.85%*, 08/01/2022 400,000
500,000 Michigan St HFA (Mt. Clemens) 7-Day, 3.70%**, 08/15/2015 500,000
----------------
1,400,000
----------------
Missouri (4.33%)
1,900,000 Missouri Higher Ed Loan Fac 7-Day, 3.90%**, 06/01/2017 1,900,000
----------------
New York (3.87%)
1,100,000 New York, NY Sub Ser A4 DTN, 3.80%*, 08/01/2023 1,100,000
600,000 New York State Dorm Auth 7-day, 3.90%**, 02/15/2007 600,000
----------------
1,700,000
----------------
North Carolina (2.96%)
1,300,000 North Carolina Medical Care 7-Day, 3.85%**, 10/01/2023 1,300,000
----------------
Texas (8.20%)
200,000 Lone Star, TX Airport Ser A1 DTN, 3.80%*, 12/01/2014 200,000
400,000 Lone Star, TX Airport Ser A5 DTN, 3.80%*, 12/01/2014 400,000
300,000 Lone Star, TX Airport Ser B5 DTN, 3.80%*, 12/01/2014 300,000
800,000 Grapevine, TX IDR Ser B3 DTN, 3.80%*, 12/01/2024 800,000
1,000,000 Hunt Co., TX Industrial Dev 7-Day, 3.85%**, 10/01/2002 1,000,000
900,000 Harris Co., TX Ser 88A 7-Day, 3.85%**, 06/01/2005 900,000
----------------
3,600,000
----------------
Utah (2.51%)
1,100,000 Salt Lake City, UT Rev 7-Day, 3.75%**, 01/01/2020 1,100,000
----------------
Washington (1.14%)
500,000 Port of Vancouver, WA, Ser 84A 7-Day, 3.80%**, 12/01/2009 500,000
----------------
Total Variable Rate Demand Obligations 24,200,000
----------------
Municipal Bonds (44.89%):
Alabama (0.46%)
100,000 Huntsville, AL Warrants, 6.85%, 02/01/2000 101,125
100,000 Shelby Co., AL Board of Ed, 4.70%, 02/01/2000 100,307
----------------
201,432
----------------
Connecticut (0.45%)
195,000 Connecticut State Series C, 5.70%, 11/15/1999 195,582
----------------
Delaware (0.59%)
250,000 Wilmington, DE, 6.60%, 05/15/2000 259,420
----------------
District of Columbia (0.77%)
335,000 District of Columbia Ser E, 4.75%, 06/01/2000 336,948
----------------
Florida (1.73%)
500,000 Orlando, FL Utilities Comm, 7.00%, 10/01/1999 510,000
250,000 Port St. Lucie, FL Special Assmt, 4.00%, 10/01/1999 250,000
----------------
760,000
----------------
Illinois (6.01%)
200,000 Du Page Co., IL Forest Preserve, 4.00%, 10/01/1999 200,000
345,000 Cook Co., IL HSD #203, 4.375%, 12/01/1999 345,631
300,000 Bartlett, IL Park Dist, 4.20%, 12/15/1999 300,558
225,000 Itasca, IL G.O., 4.125%, 12/15/1999 225,382
595,000 Central Lake Co., IL Water Agency, 3.30%, 02/01/2000 595,000
605,000 Lake Co., IL CSD, 4.125%, 02/01/2000 606,584
165,000 So Barrington, IL Refunding, 4.75%, 05/01/2000 165,977
100,000 Chicago, IL School Fin Auth, 4.50%, 06/01/2000 100,386
100,000 Illinois State Sales Tax Rev, 4.50%, 06/15/2000 100,408
----------------
2,639,926
----------------
Indiana (0.34%)
150,000 Allen Co., IN Jail Bldg Corp, 3.70%, 10/01/1999 150,000
----------------
Iowa (2.68%)
100,000 Poweshiek, IA Water Assoc, 3.80%, 03/01/2000 100,000
330,000 Lewis, IA Central CSD, 4.50%, 05/01/2000 331,871
125,000 SE Warren Comm SD, IA, 5.00%, 05/01/2000 125,991
295,000 Des Moines, IA Ser A, 4.00%, 06/01/2000 295,472
315,000 SE Polk Comm SD, IA, 8.375%, 06/01/2000 323,708
----------------
1,177,042
----------------
Kentucky (5.14%)
470,000 Jefferson Co., KY Refunding Ser A, 4.00%, 12/01/1999 470,557
750,000 Lexington-Fayette Urban Co., KY, 7.00%, 12/01/1999 777,033
860,000 Louisville, KY Refunding Series A, 3.125%, 12/01/1999 859,820
150,000 Northern Kentucky University, 3.90%, 12/01/1999 150,171
----------------
2,257,581
----------------
Louisiana (0.88%)
185,000 Bossier City, LA Public Impr, 10.00%, 11/01/1999 185,967
200,000 LaFayette, LA Public Pwr Auth, 4.50%, 11/01/1999 200,181
----------------
386,148
----------------
Maine (0.23%)
100,000 Maine Municipal Bond Bank, 7.25%, 11/01/1999 102,322
----------------
Massachusetts (0.54%)
135,000 Southborough, MA, 6.50%, 11/15/1999 135,521
100,000 Massachusetts St Water Pollution, 4.40%, 08/01/2000 99,454
----------------
234,975
----------------
Michigan (2.91%)
135,000 Chippewa Co., MI Building Auth, 4.25%, 11/01/1999 135,106
200,000 Muskegon, MI Public Schools, 4.125%, 05/01/2000 200,419
185,000 Oakland Co., MI Refunding, 4.50%, 05/01/2000 185,680
250,000 West Bloomfield, MI SD, 5.50%, 05/01/2000 252,491
500,000 Michigan State Tranportation, 5.30%, 05/15/2000 504,540
----------------
1,278,236
----------------
Minnesota (3.40%)
350,000 Minnesota State, 5.60%, 10/01/1999 350,000
100,000 Apple Valley, MN Economic Dev, 5.15%, 12/01/1999 100,183
450,000 Minneapolis, MN, 5.50%, 12/01/1999 451,575
250,000 Minnesota Agricultural & Econ Dev, 3.40%, 12/01/1999 250,000
100,000 Richfield, MN ISD #280, 3.30%, 01/25/2000 99,938
100,000 Maple Grove, MN Impt, Ser A, 4.25%, 02/01/2000 100,160
140,000 Waseca Co., MN Cap Impr, 4.85%, 02/01/2000 140,381
----------------
1,492,237
----------------
Nevada (0.68%)
150,000 Clark Co., NV Impr & Ref, 5.80%, 10/01/1999 150,000
150,000 Nevada State Colorado River Comm, 6.00%, 10/01/1999 150,000
----------------
300,000
----------------
New Jersey (0.68%)
300,000 Secaucus, NJ, 4.85%, 10/15/1999 300,178
----------------
New York (0.23%)
100,000 Onondaga Co., NY, 5.85%, 02/15/2000 100,836
----------------
Ohio (0.46%)
100,000 Cleveland Heights, OH Pension Fund, 3.05%, 12/01/1999 99,962
100,000 Columbus, OH Waterworks, 5.00%, 05/01/2000 100,706
----------------
200,668
----------------
Texas (6.32%)
115,000 Caldwell, TX Waterworks System, 3.35%, 10/01/1999 115,000
100,000 Texas State Refunding, Ser A, 5.125%, 10/01/1999 100,000
100,000 Texas State Refunding, Ser A, 5.125%, 10/01/1999 100,000
200,000 Austin, TX Utility System Rev, 5.50%, 11/15/1999 200,541
580,000 Collin Co., TX, 5.00%, 02/15/2000 582,245
585,000 Dickinson, TX School Dist, 3.70%, 02/15/2000 585,000
180,000 Millsap, TX School Dist, 4.75%, 02/15/2000 180,554
250,000 Nolan Co., TX Hospital Dist, 6.90%, 03/01/2000 253,343
250,000 Texas A&M University, 5.00%, 05/15/2000 252,108
400,000 San Angelo, TX Ctfs Ser A, 5.25%, 08/15/2000 404,572
----------------
2,773,363
----------------
Utah (0.86%)
375,000 Logan City, UT, 5.00%, 06/15/2000 378,150
----------------
Washington (0.35%)
150,000 Seattle, WA Drain Util Rev, 7.00%, 12/01/1999 153,897
----------------
Wisconsin (8.04%)
280,000 Madison, WI Metro School Dist, 3.40%, 12/01/1999 280,000
400,000 Medford, WI Area School Dist, 4.35%, 12/01/1999 400,655
295,000 West Bend, WI, 3.85%, 02/01/2000 295,068
355,000 Darlington, WI CSD, 4.625%, 03/01/2000 356,831
355,000 Kewaunee, WI SD, 5.00%, 03/01/2000 356,881
150,000 Menomonie, WI Area SD, 5.00%, 03/01/2000 150,794
400,000 Muskego, WI Promissory Notes, 5.40%, 03/01/2000 403,396
115,000 Ripon, WI School District, 5.375%, 03/01/2000 115,760
100,000 Unity, WI School District, 4.25%, 03/01/2000 100,302
115,000 Vilas Co., WI Promissory Note, 5.125%, 03/01/2000 115,662
175,000 Crandon, WI School Dist, 6.60%, 03/15/2000 177,230
250,000 Dane Co., WI Prom Note, 4.25%, 06/01/2000 250,967
395,000 Beaver Dam, WI Water System, 4.70%, 08/01/2000 398,035
125,000 Menomonee Falls, WI, 4.50%, 08/01/2000 125,400
----------------
3,526,981
----------------
Wyoming (1.14%)
500,000 Teton Co., WY School Dist #1, 3.85%, 12/01/1999 500,484
----------------
Total Municipal Bonds 19,706,406
----------------
Mutual Funds (1.28%)
562,482 Aim Institutional Tax Free Cash Reserve, 3.50%* 562,482
----------------
Total Investments in Securities (104.09%)
(Cost--$45,694,038) $45,694,038
Other Assets & Liabilities (-4.09%) (1,796,478)
================
NET ASSETS (100.00%) $43,897,560
================
- ----------------
* Variable rate, put option subject to next business day settlement.
** Variable rate, put option subject to no longer that 7-day settlement.
*** Rate shown is as of September 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE FIXED INCOME FUNDS
The domestic economy continued to post impressive performance numbers through
the second and third quarters of 1999. Despite a rise in oil prices brought
about under rejuvenated OPEC quotas, compelling evidence of emerging inflation
was hard to find. Capacity has been heavily influenced by the low cost of
capital coupled with technological production improvements.
As we proceed through the fourth quarter of 1999 and into the year 2000, the
Federal Reserve Board will vigilantly watch for signs of emerging inflation with
at least one additional rate increase likely. As the domestic economy likely
continues to perform well, the Fed will be quick to act to curtail possible
inflation.
Looking ahead, we anticipate a positive year. However, there are always
cautionary factors. Wage pressures continue to increase. Should we see more
inflationary pressure than investors currently anticipate, the reaction will be
quick. So, while we are optimistic about the market's prospects in the months
ahead, we do believe that they may be somewhat more volatile.
LIMITED TERM BOND FUND
During the third quarter of calendar year 1999, the Limited Term Bond Fund's
duration was slightly short to its in performance index due to lingering
interest rate pressures. This positioning benefited return. Any lengthening of
the Fund's duration will likely be accomplished through Treasury securities
between now and year-end. As of September 30, 1999, the Fund maintained an
excellent credit quality profile, with sixty-six percent of the Fund in "AAA"
rated securities and eighty-seven percent in "A" or higher rated securities.
Eighty-nine percent of the Fund's securities portfolio matures within the next
five years producing an average duration of 2.30.
For the six months ended September 30, 1999, the Fund provided a total return of
0.92 percent. The Fund ended the period with net assets of $53.2 million
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
LIMITED TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
U.S. TREASURY NOTES (28.83%)
$500,000 5.00%, 04/30/2001 $495,345
1,000,000 5.75%, 04/30/2003 998,020
1,000,000 6.25%, 10/31/2001 1,011,370
500,000 6.25%, 02/15/2003 506,605
1,000,000 6.25%, 08/31/2002 1,013,180
1,000,000 6.38%, 08/15/2002 1,016,770
1,500,000 6.50%, 05/15/2005 1,536,420
3,000,000 6.50%, 05/31/2001 3,039,660
2,500,000 6.63%, 04/30/2002 2,554,025
3,000,000 7.25%, 08/15/2004 3,168,450
------------------
Total U.S. Treasury Notes 15,339,845
------------------
U.S. GOVERNMENT AGENCIES (13.98%)
1,000,000 Federal National Mortgage Assoc.
Step Up, 8.625%*, 11/10/2004 994,250
1,000,000 Federal National Mortgage Assoc.,
5.13%, 11/30/2000 991,090
1,000,000 FFCB, 6.15%, 03/23/2005 975,100
1,000,000 FHLB, 5.50%, 01/21/2003 972,880
500,000 FNMA Med Term Note, 6.98%, 06/16/2004 499,330
1,000,000 FNMA Medium Term Note, 5.80%, 07/23/2001 996,250
1,000,000 FNMA, 6.25%, 12/13/2002 999,760
1,000,000 FNMA, 7.28%, 05/23/2007 1,007,000
------------------
Total U.S. Government Agencies 7,435,660
------------------
MORTGAGE RELATED SECURITIES (19.49%)
Collateralized Mortgage Obligations (10.13%)
2,000,000 Federal Home Loan Mortgage Corp.,
6.50%, 03/15/2007 1,998,380
1,733,220 Federal Home Loan Mortgage Corp.,
6.50%, 09/15/2006 1,741,089
1,000,000 FHLMC T-11 Class A3, 6.50%, 03/25/2011 992,220
657,237 FNMA 1997-72, 7.00%, 10/18/2002 658,913
------------------
5,390,602
------------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools
(1.42%)755,918 7.00%, 08/01/2009 756,138
------------------
Federal National Mortgage Association
Mortgage-Backed Pools (1.39%)
759,348 1993-14, 6.00%, 02/25/2008 740,889
------------------
Asset Backed Securities (6.55%)
1,000,000 Case Equipment Loan Trust
1998-B A4, 5.92%, 10/15/2005 972,450
1,000,000 Fingerhut 98-1A, 6.07%, 05/15/2005 997,710
505,172 Nations Credit Grantor
Trust 97-1, 6.75%, 08/15/2013 506,126
1,000,000 Union Acceptance Corp., 6.82%, 01/09/2006 1,007,030
------------------
3,483,316
------------------
Total Mortgage-Related Securities 10,370,945
------------------
U.S. TAXABLE MUNICIPAL BONDS (1.88%)
1,000,000 State of Texas Veterans Housing
Fund II-Series B-1, 6.73%, 06/01/2021 1,002,130
------------------
CORPORATE BONDS (33.95%)
Aerospace (1.86%)
1,000,000 Boeing Company, 6.35%, 06/15/2003 987,500
------------------
Banking and Financial Services (11.12%)
1,000,000 BankAmerica Corp., 5.75%, 03/01/2004 955,000
1,000,000 Bankers Trust, 5.85%, 05/11/2000 998,750
1,000,000 Bear Stearns Co., 7.34%, 12/19/2006 995,000
1,000,000 Beneficial Corp., 6.27%, 12/06/2001 988,750
1,000,000 Associates, 5.85%, 01/15/2001 993,750
1,000,000 Salomon Smith Barney, 6.63%, 11/15/2003 987,500
------------------
5,918,750
------------------
Consumer Goods and Services (2.36%)
1,255,000 Reebok International Ltd, 6.75%, 05/15/2000 1,256,569
------------------
Healthcare (1.45%)
1,000,000 Healthsouth Corp., 3.25%, 04/01/2003 772,500
------------------
Homebuilding (1.80%)
1,000,000 Oakwood Homes Corp., 7.88%, 03/01/2004 956,250
------------------
Industrial Goods and Services (11.62%)
1,000,000 Comdisco, 6.13%, 08/01/2001 982,500
500,000 Cummmins Engine, 6.75%, 02/15/2027 478,750
1,000,000 Dillard's Dept Store, 9.50%, 10/15/2001 1,042,500
1,000,000 Loyola University, 6.03%, 06/15/2000 999,220
1,175,000 Pep Boys-Manny Moe Jack Zero Coupon,
9.84%*, 09/20/2011 647,719
1,000,000 Reynolds & Reynolds, 6.12%, 03/02/2001 988,750
1,000,000 Xerox Corporation, 8.13%, 04/15/2002 1,041,250
------------------
6,180,689
------------------
Railroads (1.94%)
1,000,000 Norfolk Southern Railway
Equipment Trust, 7.75%, 08/15/2002 1,033,750
------------------
Telecommunications (1.80%)
1,000,000 AT&T Corp., 5.63%, 03/15/2004 957,500
------------------
Total Corporate Bonds 18,063,508
------------------
Mutual Funds (0.95%)
503,610 Government Assets Fund, 5.24%** 503,610
------------------
Total Investments in Securities (99.08%)
(Cost $53,235,283) (a) $52,715,698
------------------
Other Assets & Liabilities (0.92%) 486,989
------------------
NET ASSETS (100.00%) $53,202,687
==================
- ---------------
(a) Cost for federal income tax purposes differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation......$226,214
Unrealized Depreciation......($745,799)
Net Unrealized Depreciation..($519,585)
* Effective yield at date of purchase.
** Rate shown is as of September 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE BOND FUND
The Vintage Bond Fund has performed excellently for shareholders during the
period. Fund performance compared to performance indices compares very
favorably. During the period, the Fund maintained duration short of the
benchmark as rates continued to increase. As we approached the end of the
period, duration was managed much closer to neutral as yields reached levels
that offered good value. Credit quality remained very strong with sixty-five
percent of the Fund's portfolio rated "A" or better as of September 30.
We anticipate that the corporate sector will contribute significantly to Fund
returns in the year 2000 if spreads begin to return to more normalized historic
levels. As of September 30, the Fund's duration is 4.63 with an average maturity
of 7.81 years.
For the six months ended September 30, 1999, the Fund provided a total return of
0.30 percent. The Fund ended the period with net assets of $27.8 million.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
U.S. TREASURY NOTES (7.75%)
1,000,000 5.63%, 02/28/2001 $1,000,680
225,000 6.38%, 08/15/2002 228,773
250,000 6.50%, 05/15/2005 256,070
400,000 6.50%, 08/15/2005 409,488
150,000 6.63%, 03/31/2002 153,152
100,000 8.00%, 05/15/2001 103,631
------------------
Total U.S. Treasury Notes 2,151,794
------------------
U.S. TREASURY BONDS (12.68%)
$275,000 7.25%, 05/15/2016 297,325
1,200,000 7.50%, 11/15/2016 1,328,580
500,000 8.00%, 11/15/2021 590,940
1,100,000 8.13%, 08/15/2019 1,302,543
------------------
Total U.S. Treasury Bonds 3,519,388
------------------
U.S. GOVERNMENT AGENCIES (6.11%)
300,000 Federal Farm Credit Bank, 4.83%, 10/01/1999 300,000
500,000 FHLB, 6.50%, 11/29/2005 498,940
100,000 FNMA, 8.35%, 11/10/1999 100,302
100,000 FNMA, 8.63%, 11/10/2004 100,288
500,000 Housing Urban Development, 5.30%, 08/01/2001 491,890
50,000 Tennessee Valley Authority, 8.38%, 10/01/1999 50,000
151,000 World Bank Gl Bd, 8.13%, 03/01/2001 153,875
------------------
Total U.S. Government Agencies 1,695,295
------------------
MORTGAGE-RELATED SECURITIES (26.25%)
Collateralized Mortgage Obligations (3.81%)
65,285 Block 1997-1 A2, 6.85%, 10/25/2011 65,581
92,458 FHLMC 1395, 6.00%, 11/15/2021 90,717
7,994 FHLMC Ser L Class 5, 7.90%, 05/01/2001 8,177
7,903 FNMA 1991-174 K, 7.00%, 04/25/2006 7,895
68,822 Fnr 1997-48 Pb CMO, 6.75%, 08/18/2019 68,671
77,340 Ge Capital Mtg 1997-HE3 A3, 6.52%, 08/25/2013 77,148
10,981 General Electric Cap Mtge Serv, 5.70%, 01/25/2024 10,938
102,683 Green Treee 1996-2 A2, 6.45%, 04/15/2027 101,640
203,706 Salomon Mortgage Sec. VII 1995-1 PO,
10.54%*, 02/25/2025 135,115
500,000 Southern Pacific Secured Assets Corp.,
7.08%, 03/25/2028 492,560
------------------
1,058,442
------------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools (1.60%)
197,359 #00538, 6.50%, 03/01/2013 194,231
45,087 #C00126, 8.50%, 06/01/2022 46,536
207,526 #E00548, 6.50%, 05/01/2013 204,133
------------------
444,900
------------------
Federal National Mortgage Association Mortgage-Backed Pools (10.81%)
322,819 #251286, 7.00%, 11/01/2027 318,232
460,062 #251813, 6.50%, 07/01/2028 441,084
165,188 #313873, 7.00%, 12/01/2027 162,950
399,977 #408827, 6.50%, 02/01/2028 385,678
784,348 #430093, 7.00%, 06/01/2028 772,590
956,101 #448917, 6.50%, 11/01/2028 918,077
------------------
2,998,611
------------------
Government National Mortgage Assoc. Mortgage-Backed Pools (10.03%)
18,447 #315929, 9.00%, 06/15/2022 19,270
26,290 #341681, 8.50%, 01/15/2023 27,251
30,267 #354189, 7.50%, 05/01/2023 30,357
59,890 #359600, 7.50%, 07/15/2023 60,077
160,156 #376218, 7.50%, 08/15/2025 160,636
92,514 #385300, 8.00%, 10/15/2024 94,413
80,075 #410049, 8.00%, 07/15/2025 81,708
319,638 #412334, 7.00%, 10/15/2027 313,645
139,145 #412645, 8.00%, 08/15/2026 142,025
130,975 #440404, 7.50%, 04/15/2027 131,362
199,133 #454375, 7.00%, 03/15/2028 195,905
950,839 #462384, 7.00%, 11/15/2027 935,170
244,239 #780213, 7.50%, 08/15/2025 245,106
344,996 #780619, 7.00%, 08/15/2012 345,306
------------------
2,782,231
------------------
Total Mortgage-Related Securities 7,284,184
------------------
U.S. TAXABLE MUNICIPAL BONDS (5.20%)
460,000 Berry Creek Met Dist, CO, 7.05%, 12/01/2003 465,515
125,000 Fulton, MO Impt Txbl/Sink, 7.60%, 07/01/2011 128,674
265,368 Mille Lacs Band of Ojibwe Indians, 8.00%, 06/01/2004 262,473
155,000 New Orleans, LA Hsg. Dev., 8.00%, 12/01/2003 155,104
68,952 Oregon Department of Trans., 9.00%, 06/15/2000 69,665
90,000 Prairie Du Chien Redev., 7.60%, 04/01/2005 91,408
100,000 Prairie Du Chien, WI, 7.63%, 04/01/2006 101,969
165,000 Washington St. Hsg., 7.65%, 01/01/2004 168,617
------------------
Total U.S. Taxable Municipal Bonds 1,443,425
------------------
CORPORATE BONDS (38.93%)
Finance (2.06%)
250,000 GMAC, 8.88%, 06/01/2010 278,438
130,000 Hubco, Inc., 7.75%, 01/15/2004 132,600
165,000 Lehman Brothers MTN, 8.05%, 01/15/2019 160,875
------------------
571,913
------------------
International (2.01%)
350,000 City of Naples, Italy, 7.52%, 07/15/2006 357,437
185,000 Nova Scotia, 8.25%, 11/15/2019 200,263
------------------
557,700
------------------
Industrial (32.02%)
315,000 ABC Rail Product, 8.75%, 12/31/2004 278,775
145,000 AGCO Corp., 8.50%, 03/15/2006 135,937
140,000 Dayton Hudson, 10.00%, 12/01/2000 145,775
415,000 Fletcher Challenge, 6.75%, 03/24/2005 394,250
500,000 Geon Company, 6.88%, 12/15/2005 485,625
250,000 Georgia Pacific, 8.13%, 06/15/2023 239,688
700,000 Healthsouth Corp., 3.25%, 04/01/2003 540,750
475,000 HRPT Properties, 6.88%, 08/26/2002 465,500
750,000 Ikon Office, 6.75%, 11/01/2004 699,375
277,000 IMC Global Inc., 9.45%, 12/15/2011 311,971
650,000 Millipore Corp., 7.20%, 04/01/2002 640,250
865,000 Olsten Corp., 7.00%, 03/15/2006 816,344
700,000 Omnicare Inc., 5.00%, 12/01/2007 444,500
1,510,000 Pep Boys-Manny Moe Jack Zero
Coupon, 9.82%**, 09/20/2011 832,388
10,000 Realty Income Sr. Notes 230,000
613,000 Reebok International, 6.75%, 09/15/2005 576,220
500,000 Teck Corp., 3.75%, 07/15/2006 392,500
625,000 Thermo Instrument, 4.00%, 01/15/2005 512,500
750,000 Tupperware, 7.25%, 10/01/2006 744,375
------------------
8,886,722
------------------
Utilities (2.84%)
500,000 Boise Cascade, 7.05%, 05/15/2005 478,125
75,000 Citizens Utility Co., 6.80%, 08/15/2026 75,656
24,375 Salton Sea Fdg, 7.02%, 05/30/2000 24,488
200,000 Texas East Trans, 8.25%, 10/15/2004 210,000
------------------
788,269
------------------
Total Corporate Bonds 10,804,603
------------------
MUTUAL FUNDS (3.27%)
908,880 Government Assets Fund, 4.64%*** 908,880
------------------
Total Investments in Securities (100.19%)
(Cost $28,324,521) $27,807,568
------------------
Other Assets & Liabilities (-0.19%) (53,209)
------------------
NET ASSETS (100.00%) $27,754,359
==================
- ---------------
(a) Cost for federal income tax purposes differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation.....$107,275
Unrealized Depreciation.....$624,227)
Net Unrealized Depreciation.$516,952)
* Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to maturity of
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. The interest rate
disclosed represents the current yield at date of purchase.
** Effective yield at date of purchase.
*** Rate shown is as of September 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE INCOME FUND
The Income Fund continues to focus on providing shareholders with enhanced
income opportunities. As of September 30, 1999, the Income Fund's SEC yield
reached the 6.25 percent level. Over the course of the semi-annual period, the
portfolio was extended to a duration of 4.72 with an average maturity of 8.30
years, slightly less than the Fund's performance index.
Credit quality of securities held within the Fund continues to be very strong,
with sixty percent of Fund holdings rated "AAA". The Fund also maintained a
fully diversified position with thirty-nine percent of the portfolio in
corporate obligations, forty-two percent in mortgage backed securities, and
eighteen percent in U.S. government securities, taxable municipal obligations
and cash.
For the six months ended September 30, 1999 the Fund provided a total return of
0.31 percent. The Fund ended the period with net assets of $104.0 million.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
U.S. TREASURY NOTES (3.20%)
$1,000,000 4.88%, 03/31/2001 $989,580
550,000 6.13%, 09/30/2000 553,394
1,750,000 6.50%, 05/31/2002 1,782,235
-----------------
Total U.S. Treasury Notes 3,325,209
-----------------
U.S. TREASURY BONDS (10.09%)
2,250,000 7.50%, 11/15/2016 2,491,088
1,300,000 7.13%, 02/15/2023 1,410,864
6,000,000 7.25%, 08/15/2022 6,588,420
-----------------
Total U.S. Treasury Bonds 10,490,372
-----------------
U.S. GOVERNMENT AGENCIES (1.84%)
1,000,000 Federal Home Loan Bank, 5.55%, 11/25/2008 925,700
1,000,000 FHLMC, 5.00%, 02/15/2001 987,970
-----------------
1,913,670
-----------------
MORTGAGE RELATED SECURITIES (41.44%)
Collateralized Mortgage Obligations (5.66%)
2,432,369 Federal Agricultural Mortgage Corp. Ser.
Ca-1001 1, 7.59%, 01/25/2002 2,446,051
2,000,000 Federal Home Loan Mortgage Corp.,
7.00%, 04/15/2009 2,018,180
812,263 Prudential Home Mortgage Securities,
7.15%, 03/25/2024 811,523
602,565 Ryland Mortgage Securities Corp. 1993-4 A5,
7.50%, 08/25/2024 606,807
-----------------
5,882,561
-----------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools (3.81%)
1,781,387 #C00592, 7.00%, 02/01/2028 1,756,946
2,292,356 #19588, 6.50%, 12/01/2028 2,201,991
-----------------
3,958,937
-----------------
Federal National Mortgage Association Mortgage-Backed Pools (6.75%)
907,584 #303971, 7.50%, 07/01/2016 909,990
1,821,127 #251614, 7.00%, 04/01/2028 1,794,375
2,118,085 #251697, 6.50%, 05/01/2028 2,037,556
1,474,494 #252334, 6.50%, 02/01/2029 1,414,350
877,240 #430203, 7.00%, 06/01/2028 863,143
-----------------
7,019,414
-----------------
Government National Mortgage Assoc. Mortgage-Backed Pools (15.27%)
2,192,665 6.50%, 02/15/2028 2,101,604
1,756,405 7.00%, 06/15/2027 1,730,252
1,936,090 6.50%, 12/15/2028 1,852,587
464,991 8.00%, 03/15/2025 474,765
1,314,115 7.50%, 12/15/2025 1,318,806
341,607 7.50%, 02/20/2009 344,699
2,249,409 7.00%, 11/15/2028 2,208,987
925,210 7.00%, 08/15/2028 908,722
2,005,907 7.00%, 02/15/2028 1,974,334
1,451,126 7.50%, 10/15/2027 1,455,479
1,501,445 7.50%, 09/15/2027 1,506,129
-----------------
15,876,364
-----------------
Asset Backed Securities (9.95%)
1,000,000 Bear Stearns CBO 1998-1 Class A-2A
(144A), 6.72%, 06/15/2010 948,710
1,000,000 Chyps CBO Series 1999-1 Class A1,
6.47%, 02/01/2011 942,230
1,000,000 Denver Arena Trust, 6.94%, 11/15/2019 902,190
513,999 Green Tree Recreational Equipment,
6.55%, 07/15/2028 518,249
2,000,000 Greentree 96-F A4, 7.30%, 01/15/2028 2,020,860
2,000,000 IMC Home Equity Loan 1996-4 A4,
7.11%, 08/25/2014 1,996,420
1,010,343 Nations Credit Grantor Trust 97-1,
6.75%, 08/15/2013 1,012,253
2,000,000 Olympic Auto 96-D A5, 6.25%, 11/15/2004 1,999,140
-----------------
10,340,052
-----------------
Total Mortgage-Related Securities 43,077,328
-----------------
U.S. Taxable Municipal Bonds (3.41%)
1,000,000 Detroit Michigan Building Authority,
6.60%, 07/01/2003 1,005,790
1,000,000 Las Vegas NV, 7.20%, 07/01/2015 982,320
480,979 Mille Lacs Band of Ojibwe Indians,
8.00%, 06/01/2004 475,731
1,200,000 University Southern California,
5.87%, 01/01/2014 1,084,800
-----------------
Total U.S. Taxable Municipal Bonds 3,548,641
-----------------
CORPORATE BONDS (38.35%)
Banking (1.43%)
1,000,000 First Union Corp., 7.05%, 08/01/2005 992,500
500,000 Northern Trust Co., 6.50%, 05/01/2003 499,375
-----------------
1,491,875
-----------------
Business Services (2.09%)
2,300,000 Olsten Corp., 7.00%, 03/15/2006 2,170,625
-----------------
Chemicals (1.87%)
2,000,000 Geon Company, 6.88%, 12/15/2005 1,942,500
-----------------
Consumer Goods and Services (4.48%)
1,100,000 Jones Apparel, 7.50%, 06/15/2004 1,094,500
1,000,000 Reebok Intl Ltd, 6.75%, 09/15/2005 940,000
2,645,000 Tupperware Financial, 7.25%, 10/01/2006 2,625,162
-----------------
4,659,662
-----------------
Electric Utility (1.95%)
1,000,000 Florida Power & Light, 6.88%, 04/01/2004 1,023,750
1,000,000 Philadelphia El, 7.38%, 12/15/2001 1,006,250
-----------------
2,030,000
-----------------
Financial Services (2.83%)
500,000 John Deere, 8.63%, 08/01/2019 525,625
1,000,000 Lehman Brothers, 6.63%, 02/05/2006 956,250
1,500,000 Paine Webber Group Inc., 6.45%, 12/01/2003 1,458,750
-----------------
2,940,625
-----------------
Government Agency (0.67%)
700,000 Quebec Province, 6.19%, 03/10/2026 694,750
-----------------
Health Care (1.45%)
1,950,000 Healthsouth Corp., 3.25%, 04/01/2003 1,506,375
-----------------
Industrial Goods and Services (12.45%)
2,000,000 Fletcher Challng Cap Can, 7.75%, 06/20/2006 1,970,000
2,000,000 Ford Motor Company, 7.13%, 11/15/2025 1,915,000
1,000,000 Ikon Office, 6.75%, 11/01/2004 932,500
950,000 K Mart Corp., 7.17%, 07/24/2000 954,750
2,100,000 Owens-Illinois Inc., 8.10%, 05/15/2007 2,052,750
1,100,000 Pennzoil Co., 10.63%, 06/01/2001 1,102,750
4,750,000 Pep Boys-Manny Moe Jack Zero Coupon,
9.81%*, 09/20/2011 2,618,437
1,700,000 Thermo Instrument, 4.00%, 01/15/2005 1,394,000
-----------------
12,940,187
-----------------
Metals and Mining (1.51%)
2,000,000 Teck Corp., 3.75%, 07/15/2006 1,570,000
-----------------
Real Estate (5.29%)
1,250,000 Avalon Bay, 6.80%, 07/15/2006 1,173,438
2,000,000 HRPT Properties Trust, 6.88%, 08/26/2002 1,960,000
1,550,000 Nationwide Health Properties, 7.23%, 11/08/2006 1,435,687
1,000,000 Simon Property Group, Inc., 7.13%, 02/09/2009 926,250
-----------------
5,495,375
-----------------
Restaurants (0.18%)
182,778 Secured Restaurant Trust, 10.25%, 11/15/2000 190,504
-----------------
Retail Stores (0.94%)
1,000,000 Penney J.C. & Co., 7.38%, 08/15/2008 973,750
-----------------
Telecommunications (1.21%)
250,000 AT&T Corp., 8.20%, 02/15/2005 252,188
1,000,000 MCI Communications Corp., 8.25%, 01/20/2023 1,005,000
-----------------
1,257,188
-----------------
Total Corporate Bonds 39,863,416
-----------------
MUTUAL FUNDS (1.20%)
1,242,657 Government Assets Fund, 5.24%** 1,242,657
-----------------
Total Investments in Securities (99.53%) (a)
(Cost $105,798,981) $103,461,293
-----------------
Other Assets & Liabilities (0.47%) 489,070
-----------------
NET ASSETS (100.00%) $103,950,363
=================
- ---------------
(a) Cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
Unrealized Appreciation.....$425,230
Unrealized Depreciation.....($2,762,918)
Net Unrealized Depreciation.($2,337,688)
* Effective yield at date of purchase.
** Rate shown is as of September 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE MUNICIPAL BOND FUND
As of September 30, 1999, the Municipal Bond Fund maintained a duration slightly
shorter than its performance benchmark as municipal yields had not followed the
rising yields in taxable securities. As the municipal market backed up later in
the period, the Municipal Fund benefited from this relative positioning. As
yields become more attractive, year-end may provide opportunities for increased
Fund return.
At the end of the period, the Fund maintained a very high quality portfolio with
sixty percent of Fund holdings rate "AAA" with ninety-seven percent of the
Fund's portfolio rated "A" or higher. At the same point in time, the Fund's
duration was 5.10 with an average maturity of 7.7 years.
For the six months ended September 30, 1999 the Fund provided a total return of
(1.32) percent. The Fund ended the period with net assets of $50.7 million.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
MUNICIPAL BONDS (84.07%)
Arizona (1.96%)
$1,000,000 Phoenix, AZ G.O., 5.00%, 07/01/2010 $993,360
-------------------
Delaware (1.00%)
500,000 Sussex County, DE, 4.90%, 10/15/2001 506,895
-------------------
Florida (6.06%)
1,000,000 Dade County, FL, 7.65%, 04/01/2010 1,037,540
500,000 Florida School Boards Assoc., Inc.
Lease Revenue, 6.75%, 07/01/2004 511,295
500,000 Jacksonville, FL Electric Authority Revenue,
5.13%, 10/01/2007 505,670
500,000 Martin County, FL, General Obligation,
4.25%, 02/01/2001 500,920
500,000 State of Florida Board of Education,
5.13%, 06/01/2005 512,935
-------------------
3,068,360
-------------------
Idaho (1.01%)
500,000 Meridian Joint School District. #2 Idaho,
5.00%, 07/30/2003 510,270
-------------------
Illinois (19.86%)
200,000 Cherry Valley General Obligations,
6.60%, 01/01/2001 205,658
1,000,000 Illinois EFA -- Depaul University,
4.63%, 09/01/2024 992,810
1,000,000 Illinois Health Facility-Northwestern,
6.75%, 08/15/2011 1,058,880
465,000 Illinois Housing Development Authority
Single Fami, 6.50%, 02/01/2009 487,287
1,000,000 Illinois State Sales Tax Revenue,
5.00%, 06/15/2009 993,100
1,000,000 Illinois State Sales Tax Revenue,
5.10%, 06/15/2010 995,840
1,000,000 Illinois State Toll Hwy Auth Revenue,
5.50%, 01/01/2014 998,930
1,000,000 Joliet Illinois, 6.25%, 01/01/2011 1,034,840
500,000 Kane County, Il Motor Fuel Transport Revenue,
5.40%, 03/01/2006 515,440
1,000,000 Kendall & Kane Counties, Il CSD #115 Yorkville,
5.65%, 01/01/2008 1,039,050
1,000,000 Macon County and Decatur Illinois CTF Partn,
6.50%, 01/01/2004 1,072,150
400,000 Sangamon County, IL Certificate Participation,
6.40%, 12/01/2000 410,544
250,000 Winnebago County, IL School District 122,
5.75%, 06/01/2001 256,505
-------------------
10,061,034
-------------------
Indiana (14.53%)
1,000,000 Evansville, IN Building Authority,
5.30%, 08/01/2008 1,020,430
1,000,000 Highland, IN Sch Bldg Corp., 5.25%, 07/05/2014 951,560
500,000 Indiana Bond Bank (Elkhart Water\Sewer Refunding),
5.55%, 11/01/2010 510,535
1,000,000 Indiana University Higher Ed, 6.80%, 08/01/2004 1,058,960
1,000,000 Indianapolis, IN Public Transportation,
6.00%, 07/01/2010 1,060,970
1,000,000 Indianapolis, IN Utilities District Reference,
4.00%, 06/01/2012 876,870
1,000,000 Kokomo-Center, IN School Building Corp.,
6.75%, 07/15/2004 1,090,080
750,000 Marion County, IN, 6.60%, 06/01/2003 790,545
-------------------
7,359,950
-------------------
Iowa (2.99%)
1,000,000 Cedar Rapids Iowa General Obligation,
5.00%, 06/01/2011 986,030
500,000 Iowa State Certificate Participation,
6.50%, 07/01/2006 528,805
-------------------
1,514,835
-------------------
Massachusetts (1.02%)
500,000 Mass. Bay Transportation Authority,
5.30%, 03/01/2008 518,460
-------------------
Minnesota (2.00%)
1,000,000 Minneapolis, MN Reference Series A,
5.10%, 12/01/2008 1,011,000
-------------------
Nevada (0.99%)
500,000 State of Nevada, 4.40%, 11/01/2001 502,160
-------------------
New Jersey (0.99%)
500,000 New Jersey Wastewater Treatment Trust
Series A, 4.80%, 09/01/2006 503,495
-------------------
New York (1.98%)
1,000,000 Long Island NY Power, 4.10%, 12/01/2000 1,001,760
-------------------
Rhode Island (1.00%)
500,000 Rhode Island State, 4.90%, 06/15/2004 507,730
-------------------
Texas (7.04%)
500,000 Dallas, TX Water & Sewer, 4.90%, 04/01/2004 505,930
1,000,000 Pharr-San Juan-Alamo, TX Independent School,
5.25%, 02/01/2008 1,016,350
900,000 Sam Rayburn Texas Municipal, 6.00%, 09/01/2010 973,404
1,000,000 San Antonio, TX, 6.00%, 08/01/2008 1,072,860
-------------------
3,568,544
-------------------
Utah (1.03%)
500,000 Salt Lake County, UT, 5.50%, 12/15/2004 523,420
-------------------
Virginia (2.40%)
1,000,000 Virginia Beach, VA, 5.40%, 09/01/2009 1,017,630
195,000 Virginia Educational Loan Authority Series E,
5.50%, 03/01/2001 198,073
-------------------
1,215,703
-------------------
Washington (10.71%)
1,000,000 Benton County, WA Public Utility, 5.45%, 11/01/2008 1,027,570
800,000 Grant County, WA Public Utilities Hydro-Electric,
5.60%, 01/01/2010 820,640
1,000,000 Pierce Cnty WA Sch Dist #001, 6.00%, 12/01/2010 1,074,070
500,000 Seattle, WA Water System Revenue, 4.70%, 12/01/2000 504,765
1,000,000 Thurston County, WA #111, 5.00%, 12/01/2010 986,470
500,000 Washington State Government Obligation,
5.35%, 09/01/2006 514,265
500,000 Washington State, 6.80%, 10/01/2002 500,040
-------------------
5,427,820
-------------------
Wisconsin (6.99%)
500,000 City of Beloit, WI Sewer System Revenue Bond,
4.80%, 07/01/2005 502,710
500,000 Madison, WI, 5.00%, 04/01/2005 508,170
500,000 Milwaukee, WI, 5.15%, 11/15/2008 511,880
500,000 Sturgeon Bay, WI Combined Utility, 4.90%, 01/01/2006 502,055
500,000 Wisconsin Housing & Economic Development Revenue,
5.20%, 11/01/2006 500,970
1,000,000 Wisconsin State Series A, 5.00%, 05/01/2009 1,015,090
-------------------
3,540,875
-------------------
Wyoming (0.51%)
250,000 Cheyenne, WY General Obligations Unlimited,
5.45%, 12/01/2001 256,713
-------------------
Total Municipal Bonds 42,592,384
-------------------
Alternative Minimum Tax Paper (12.87%)
1,000,000 Alaska Student Loan, 5.63%, 07/01/2007 1,023,800
500,000 Austin, TX Airport Revenue, 5.50%, 11/15/2006 516,920
1,000,000 Fort Wayne, IN Intl Airport, 5.25%, 07/15/2011 975,050
300,000 Illinois Student Assistance Commission,
6.30%, 03/01/2003 312,966
1,000,000 Iowa Student Loan Liquidity Corp. Series C,
5.10%, 06/01/2009 987,170
500,000 Iowa Student Loan, 5.75%, 12/01/2006 514,565
440,000 Massachusetts Education Loan Authority,
5.60%, 07/01/2006 454,326
35,000 New Mexico Educational Assistance, 5.75%, 08/01/2007 36,132
500,000 South Dakota Student Loan, 5.85%, 08/01/2000 507,680
190,000 Student Loan Funding Corp., Series C,
5.50%, 12/01/2001 191,218
1,000,000 Utah Board of Regents, 5.20%, 05/01/2008 998,580
-------------------
Total Alternative Minimum Tax Paper 6,518,407
-------------------
Mutual Funds (1.96%)
990,476 Bankers Trust Tax Free Money Fund, 2.88%* 990,476
-------------------
Total Investments in Securities (98.90%)
(Cost $50,104,175) $50,101,267
-------------------
Other Assets & Liabilities (1.10%) 559,696
-------------------
NET ASSETS (100.00%) $50,660,963
===================
- ---------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
Unrealized Appreciation.....$448,110
Unrealized Depreciation.....($451,018)
Net Unrealized Depreciation.($2,908)
* Rate shown is as of September 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE BALANCED FUND
The Vintage Balanced Fund continued to perform well against its peers during
this semi-annual period. The Fund maintained an overweighting in equity
securities throughout the period with sixty-two percent of the portfolio
invested in equity securities as of September 30, 1999. Those equity security
positions featured overweightings in technology, financial and consumer cyclical
companies relative to the S&P 500.
The Fixed Income component of the Balanced Fund maintained a fully diversified
portfolio of high quality securities. As of September 30, the Fund's credit
quality included fifty-six percent "AAA" securities, with a duration of 4.78 and
an average maturity of 8.51 years.
For the six months ended September 30, 1999, the Fund provided a total return of
(0.54) percent. The Fund ended the period with assets of $88.0 million.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
U.S. TREASURY NOTES (1.73%)
$250,000 6.13%, 08/15/2007 $250,205
750,000 6.25%, 01/31/2002 758,970
500,000 6.63%, 05/15/2007 515,450
-------------------
Total U.S. Treasury Notes 1,524,625
-------------------
US TREASURY BONDS (4.67%)
500,000 7.13%, 02/15/2023 542,640
1,400,000 7.25%, 08/15/2022 1,537,298
1,300,000 7.50%, 11/15/2016 1,439,295
500,000 8.00%, 11/15/2021 590,940
-------------------
Total U.S. Treasury Bonds 4,110,173
-------------------
U.S. GOVERNMENT AGENCY (2.18%)
500,000 Federal Home Loan Bank, 6.13%, 08/15/2003 494,795
500,000 FHLB, 5.13%, 09/15/2003 479,690
500,000 FHLB, 5.50%, 08/13/2001 495,605
100,000 FHLMC, 6.90%, 09/10/2007 99,813
350,000 FNMA MTN, 6.05%, 07/28/2003 344,586
-------------------
Total U.S. Government Agency 1,914,489
-------------------
MORTGAGE RELATED SECURITIES (10.70%)
Collateralized Mortgage Obligations (0.34%)
15,657 FNMA 1992-34 Class E, 7.00%, 07/25/2020 15,683
183,704 FNMA 1992-46 Class J, 5.00%, 01/25/2007 177,909
19,489 GNMA 1994-6 Class G, 7.99%, 12/16/2019 19,543
124,212 Salomon Bros. Mortgage Sec. VII PO,
10.54*%, 02/25/2025 82,387
-------------------
295,522
-------------------
Federal Home Loan Mortgage Corp. Mortgage-Backed Pools (2.39%)
445,347 #C00592, 7.00%, 02/01/2028 439,237
14,904 #A00851, 8.50%, 12/01/2019 15,381
569,581 #17281, 6.50%, 11/02/2028 547,219
573,089 #19588, 6.50%, 12/01/2028 550,498
554,369 #E20252, 7.00%, 07/01/2011 554,529
-------------------
2,106,864
-------------------
Federal National Mortgage Assoc. Mortgage-Backed Pools (2.29%)
107,606 #251286, 7.00%, 11/01/2027 106,077
529,521 #251697, 6.50%, 05/01/2028 509,389
491,498 #252334, 6.50%, 02/01/2029 471,450
571,290 #428865, 7.00%, 06/01/2028 561,812
374,231 #430203, 7.00%, 06/01/2028 368,217
-------------------
2,016,945
-------------------
Government National Mortgage Assoc. Mortgage-Backed Pools (4.83%)
548,166 #462556, 6.50%, 02/15/2028 525,401
439,101 #780584, 7.00%, 06/15/2027 432,563
57,752 #359600, 7.50%, 07/15/2023 57,932
157,134 #376218, 7.50%, 08/15/2025 157,605
57,821 #385300, 8.00%, 10/15/2024 59,008
39,220 #410049, 8.00%, 07/15/2025 40,020
106,546 #412334, 7.00%, 10/15/2027 104,548
52,043 #305975, 9.00%, 07/15/2021 54,357
21,721 #318184, 8.50%, 11/15/2021 22,502
562,352 #469699, 7.00%, 11/15/2028 552,247
462,605 #486467, 7.00%, 08/15/2028 454,361
484,023 #486760, 6.50%, 12/15/2028 463,147
223,885 #780075, 8.00%, 03/15/2025 228,591
563,192 #780453, 7.50%, 12/15/2025 565,203
172,498 #780619, 7.00%, 08/15/2012 172,653
362,782 7.50%, 10/15/2027 363,870
-------------------
4,254,008
-------------------
Asset Backed Securities (0.85%)
235,583 Green Tree Recreational Equipment,
6.55%, 07/15/2028 237,531
250,000 Olympic Auto Trust, 6.00%, 06/15/2002 249,355
250,000 UCFC Home Equity Loan, 7.48%, 03/15/2020 257,932
-------------------
744,818
-------------------
Total Mortgage-Related Securities 9,418,158
-------------------
U.S. Taxable Municipal Bonds (1.58%)
205,000 Berry Creek, Co., 6.65%, 12/01/2001 206,616
195,000 Fulton, MO Golf Course, 7.60%, 07/01/2011 200,731
165,855 Mille Lacs Band of Ojibwe Indians,
8.00%, 06/01/2004 164,045
200,000 New Orleans, LA Hsg. Dev., 8.00%, 12/01/2003 200,134
60,000 Northwest Nazarene College, ID, 6.75%, 11/01/1999 60,067
43,678 Oregon Dot, 9.00%, 06/15/2000 44,129
250,000 Portland, OR Multifamily Hsg., 7.63%, 12/01/2001 245,920
300,000 University of Southern California, 5.87%, 01/01/2014 271,200
-------------------
Total U.S. Taxable Municipal Bonds 1,392,842
-------------------
Corporate Bonds (14.67%)
Business Services (0.75%)
700,000 Olsten Corp., 7.00%, 03/15/2006 660,625
-------------------
Consumer Goods and Services (1.02%)
400,000 Jones Apparel, 7.50%, 06/15/2004 398,000
500,000 Tupperware Financial, 7.25%, 10/01/2006 496,250
-------------------
894,250
-------------------
Electric Utility (0.57%)
500,000 Washington Water And Power, 6.24%, 10/02/2000 499,375
-------------------
Financial Services (3.86%)
500,000 Bear Stearns, 6.25%, 07/15/2005 478,750
460,000 Hubco., Inc., 7.75%, 01/15/2004 469,200
1,000,000 John Deere Cap, 5.85%, 01/15/2001 995,000
250,000 Lehman Bros. MTN, 8.05%, 01/15/2019 243,750
250,000 Merrill Lynch, 6.25%, 10/15/2008 233,438
500,000 Paine Webber Group Inc., 6.45%, 12/01/2003 486,250
500,000 Salomon Smith Barney, 6.63%, 11/15/2003 493,750
-------------------
3,400,138
-------------------
Government Agency (0.34%)
300,000 Quebec Province, 6.19%, 03/10/2026 297,750
-------------------
Health Care (0.48%)
550,000 Healthsouth Corp., 3.25%, 04/01/2003 424,875
-------------------
Industrial Goods and Services (5.36%)
500,000 Burlington Resources, 9.63%, 06/15/2000 511,875
500,000 Cummmins Engine, 6.75%, 02/15/2027 478,750
500,000 Fletcher Challng Cap Can, 7.75%, 06/20/2006 492,500
250,000 Ford Motor Company, 7.13%, 11/15/2025 239,375
500,000 Ikon Office, 6.75%, 11/01/2004 466,250
300,000 K Mart Corp., 7.17%, 07/24/2000 301,500
500,000 Owens-Illinois Inc., 8.10%, 05/15/2007 488,750
400,000 Pennzoil Co., 10.63%, 06/01/2001 401,000
1,600,000 Pep Boys-Manny Moe Jack Zero Coupon,
9.82%*, 09/20/2011 882,000
550,000 Thermo Instrument, 4.00%, 01/15/2005 451,000
-------------------
4,713,000
-------------------
Metals and Mining (0.54%)
600,000 Teck Corp., 3.75%, 07/15/2006 471,000
-------------------
Real Estate (1.46%)
500,000 Avalon Bay, 6.80%, 07/15/2006 469,375
500,000 HRPT Properties Trust, 6.88%, 08/26/2002 490,000
350,000 Nationwide Health Properties, 7.23%, 11/08/2006 324,187
-------------------
1,283,562
-------------------
Sovereign (0.18%)
150,000 Nova Scotia, 8.25%, 11/15/2019 162,375
-------------------
Transportation and Shipping (0.11%)
100,000 ATCH Top & SF, 7.09%, 02/15/2001 100,743
-------------------
Total Corporate Bonds 12,907,693
-------------------
Common Stocks (61.60%)
Advertising (0.99%)
11,000 Omnicom Group 871,062
-------------------
Aerospace (0.85%)
12,000 General Dynamics Corporation 749,250
-------------------
Banking (3.29%)
16,584 Bank Of America Corp. 923,521
23,400 Bank Of New York Co., Inc. 782,438
30,000 Wells Fargo Company 1,188,750
-------------------
2,894,709
-------------------
Beverages (0.86%)
25,000 PepsiCo., Inc. 756,250
-------------------
Broadcasting (1.36%)
15,000 Clear Channel Communications** 1,198,125
-------------------
Chemicals (1.67%)
19,500 Monsanto Co. 695,906
12,000 Rohm & Haas Co. 433,500
19,000 Solutia 339,625
-------------------
1,469,031
-------------------
Computer Hardware (4.55%)
29,250 CISCO Systems, Inc.** 2,005,453
8,800 IBM 1,068,100
10,000 Sun Microsystems, Inc.** 930,000
-------------------
4,003,553
-------------------
Computer-Software & Peripherals (4.07%)
15,000 Lexmark International Group** 1,207,500
26,200 Microsoft Corporation** 2,372,737
-------------------
3,580,237
-------------------
Consumer Goods & Services (2.79%)
24,000 Clorox 918,000
17,000 Kimberly Clark Corp. 892,500
6,900 Procter & Gamble Co. 646,875
-------------------
2,457,375
-------------------
Diversified (3.57%)
20,000 Kansas City Southern Inds. 928,750
8,000 Minnesota Mining and Manufacturing Co. 768,500
14,000 Tyco International, Ltd. 1,445,500
-------------------
3,142,750
-------------------
Electrical Equipment & Electronics (2.93%)
13,400 General Electric Co. 1,588,737
20,000 Jabil Circuit, Inc.** 990,000
-------------------
2,578,737
-------------------
Energy (0.83%)
25,000 USX-Marathon Group 731,250
-------------------
Entertainment (0.91%)
30,000 News Corp. Ltd Pfd ADR 800,625
-------------------
Financial Services (5.52%)
19,600 Assoc. First Capital "A" 705,600
15,000 AXA Financial, Inc. 837,187
16,000 Fannie Mae 1,003,000
25,000 Franklin Resources, Inc. 768,750
15,000 H & R Block 651,562
10,000 Morgan Stanley Dean Witter & Co. 891,875
-------------------
4,857,974
-------------------
Health Care Products and Services (2.08%)
20,800 Abbott Laboratories 764,400
19,500 Cardinal Health, Inc. 1,062,750
-------------------
1,827,150
-------------------
Home Furnishings (0.84%)
25,700 Newell Rubbermaid, Inc. 734,056
-------------------
Insurance (1.95%)
9,140 American International Group, Inc. 794,609
13,500 Marsh & Mclennan Co. 924,750
-------------------
1,719,359
-------------------
Medical Equipment & Supplies (1.21%)
30,000 Medtronic, Inc. 1,065,000
-------------------
Newspaper & Publishing (0.45%)
8,000 Tribune Co. 398,000
-------------------
Oil & Gas Exploration Products & Services (1.36%)
8,300 Halliburton Co. 340,300
13,800 Schlumberger, Ltd. 859,913
-------------------
1,200,213
-------------------
Pharmaceuticals (5.53%)
15,000 American Home Products Corp. 622,500
11,600 Bristol-Myers Squibb Co. 783,000
25,000 Elan Corp. ADR** 839,063
29,100 Pfizer, Inc. 1,045,781
20,000 Warner Lambert Co. 1,327,500
8,000 Watson Pharmaceutical Inc.** 244,500
-------------------
4,862,344
-------------------
Resorts & Entertainment (0.99%)
20,000 Carnival Cruise Lines 870,000
-------------------
Retail - General Merchandise (1.72%)
17,000 Dayton Hudson Corp. 1,021,062
7,500 Kohl's Corp.** 495,938
-------------------
1,517,000
-------------------
Retail - Specialty Stores (2.86%)
23,000 Lowe's Cos. 1,121,250
35,000 Staples, Inc.** 763,438
25,000 Walgreen Company 634,375
-------------------
2,519,063
-------------------
Semiconductors (0.85%)
10,000 Intel Corp. 743,125
-------------------
Technology (2.01%)
16,000 Texas Instruments 1,316,000
10,000 Unisys** 451,250
-------------------
1,767,250
-------------------
Telecommunications-Services and Equipment (5.56%)
17,000 Alltel 1,196,375
19,500 AT&T Corp. 848,250
7,500 MCI WorldCom, Inc.** 539,063
10,000 Motorola, Inc. 880,000
28,000 Nortel Networks Corp. 1,428,000
-------------------
4,891,688
-------------------
Total Common Stocks 54,205,176
-------------------
Mutual Funds (3.27%)
2,872,901 Government Assets Fund, 5.24%*** 2,872,901
-------------------
Total Investments in Securities (100.40%)
(Cost $79,579,508) $88,346,056
-------------------
Other Assets & Liabilities (-0.40%) (351,394)
-------------------
NET ASSETS (100.00%) $87,994,662
===================
- ---------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
Unrealized Appreciation.....$12,476,947
Unrealized Depreciation.....($3,710,399)
Net Unrealized Appreciation.$8,766,548
* Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to maturity of
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. The interest rate disclosed represents
the current yield at date of purchase.
** Represents non-income producing securities.
*** Rate shown is as of September 30, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE EQUITY FUND
The Vintage Equity Fund's performance slightly lagged the Fund's performance
benchmark for the period as a sector rotational shift that occurred late in the
first calendar quarter had not fully reversed itself by September 30. Market
sectors favored during that shift, such as energy, are traditionally
underweighted in the Vintage Equity Fund.
Looking forward, the Fund is well positioned as we approach year-end. Sector
overweightings in the Fund include consumer cyclicals, health care and financial
services, with the latter two expected to perform strongly in the calendar year
fourth quarter on the strength of anticipated excellent earnings comparisons.
Technology holdings are expected to be volatile for the foreseeable future, but
we expect that sector to return to its leadership position.
Largest holdings as of September 30 include Nortel Networks, Texas Instruments,
Cisco Systems, Tyco International and IBM.
For the six months ended September 30, 1999, the Fund provided a total return of
(0.48) percent for S class shareholders and (0.39) percent for T class
shareholders. The Fund ended the period with combined net assets of $510.8
million.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
COMMON STOCKS (99.52%)
Automotive (1.60%)
130,000 General Motors Corp. $8,181,875
-------------------
Banking (7.88%)
180,000 Bank Of America Corp. 10,023,750
220,000 Bank Of New York Co., Inc. 7,356,250
100,000 Chase Manhattan Corp. 7,537,500
180,000 Regions Financial 5,400,000
250,000 Wells Fargo Company 9,906,250
-------------------
40,223,750
-------------------
Beverages (1.18%)
200,000 PepsiCo., Inc. 6,050,000
-------------------
Biotech (1.92%)
120,000 Amgen, Inc.** 9,780,000
-------------------
Broadcasting (2.35%)
150,000 Clear Channel Communications** 11,981,250
-------------------
Business Services (2.37%)
90,000 American Express Co. 12,116,250
-------------------
Chemicals (1.54%)
220,000 Monsanto Co. 7,851,250
-------------------
Computer Hardware (6.88%)
200,000 CISCO Systems, Inc.** 13,712,500
130,000 EMC Corporation** 9,286,875
100,000 IBM 12,137,500
-------------------
35,136,875
-------------------
Computer - Software and Peripherals (4.02%)
120,000 Lexmark International Group** 9,660,000
120,000 Microsoft Corporation** 10,867,500
-------------------
20,527,500
-------------------
Consumer Goods & Services (5.06%)
200,000 Colgate Palmolive Co. 9,150,000
170,000 McDonald's Corp. 7,310,000
100,000 Procter & Gamble Co. 9,375,000
-------------------
25,835,000
-------------------
Diversified (6.52%)
110,000 Minnesota Mining and Manufacturing Co. 10,566,875
120,000 Textron, Inc. 9,285,000
130,000 Tyco International, Ltd. 13,422,500
-------------------
33,274,375
-------------------
Electrical Equipment & Electronics (3.90%)
100,000 General Electric Co. 11,856,250
80,000 Philips Electronics NV 8,080,000
-------------------
19,936,250
-------------------
Energy (3.45%)
200,000 Bakers Hughes 5,800,000
200,000 USX-Marathon Group 5,850,000
160,000 Williams Co. 5,990,000
-------------------
17,640,000
-------------------
Entertainment (3.07%)
300,000 Disney (Walt) Co. 7,762,500
130,000 Time Warner Inc. 7,897,500
-------------------
15,660,000
-------------------
Financial Services (6.91%)
130,000 Fannie Mae 8,149,375
180,000 Federal Home Loan Mortgage Corp. 9,360,000
110,000 Morgan Stanley Dean Witter & Co. 9,810,625
220,000 Paine Webber Group, Inc. 7,975,000
-------------------
35,295,000
-------------------
Health Care Products and Services (3.38%)
150,000 Abbott Laboratories 5,512,500
150,000 Baxter International, Inc. 9,037,500
50,000 Cardinal Health, Inc. 2,725,000
-------------------
17,275,000
-------------------
Home Furnishings (1.17%)
210,000 Newell Rubbermaid, Inc. 5,998,125
-------------------
Insurance (3.15%)
125,000 American International Group, Inc. 10,867,187
140,000 Lincoln National Corp. 5,241,200
-------------------
16,108,387
-------------------
Internet Service Providers (2.04%)
100,000 America Online, Inc.** 10,400,000
-------------------
Medical Equipment & Supplies (2.76%)
130,000 Guidant Corp.** 6,971,250
200,000 Medtronic, Inc. 7,100,000
-------------------
14,071,250
-------------------
Pharmaceuticals (7.44%)
200,000 American Home Products Corp. 8,300,000
170,000 Mylan Laboratories 3,123,750
300,000 Pfizer, Inc. 10,781,250
160,000 Warner Lambert Co. 10,620,000
170,000 Watson Pharmaceutical Inc.** 5,195,625
-------------------
38,020,625
-------------------
Retail - General Merchandise (3.00%)
160,000 Dayton Hudson Corp. 9,610,000
120,000 Walmart 5,707,500
-------------------
15,317,500
-------------------
Retail - Specialty Stores (6.38%)
200,000 Bed Bath & Beyond Inc.** 6,987,500
150,000 Circuit City 6,328,125
170,000 Home Depot, Inc. 11,666,250
300,000 Walgreen Company 7,612,500
-------------------
32,594,375
-------------------
Technology (4.90%)
60,000 Electronic Data Systems 3,180,114
200,000 Texas Instruments 16,450,000
120,000 Unisys** 5,415,000
-------------------
25,045,114
-------------------
Telecommunications - Services and Equipment (6.65%)
200,000 AT&T Corp. 8,700,000
90,000 Motorola, Inc. 7,920,000
340,000 Nortel Networks Corp. 17,340,000
-------------------
33,960,000
-------------------
Total Common Stocks 508,279,751
-------------------
Mutual Funds (0.34%)
1,751,836 Government Assets Fund, 5.24%* 1,751,836
-------------------
Total Investments in Securities (99.86%)
(Cost $350,746,333) $510,031,587
-------------------
Other Assets & Liabilities (0.14%) 728,731
-------------------
NET ASSETS (100.00%) $510,760,318
===================
- ---------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
Unrealized Appreciation.....$170,332,673
Unrealized Depreciation.....($11,047,419)
Net Unrealized Appreciation.$159,285,254
* Rate shown is as of September 30, 1999.
** Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE AGGRESSIVE GROWTH FUND
The Vintage Aggressive Growth Fund outperformed its performance benchmark for
the third calendar quarter, but lags somewhat for the year. Holdings within the
Fund emphasize technology, consumer cyclicals and health care. We anticipate
trimming some technology positions in anticipation of Y2K, but expect that
sector to be an ongoing overweight.
Technology positions added during the period include Oracle, Motorola, and
Network Solutions. Largest holdings as of September 30 include Sun Microsystems,
Nortel Networks, Staples, Clear Channel and Microsoft.
For the six months ended September 30, 1999, the Fund provided a total return of
0.23 percent. The Fund ended the period with assets of $126.4 million.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
AGGRESSIVE GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
COMMON STOCKS (97.07%)
Advertising (1.88%)
30,000 Omnicom Group $2,375,625
-------------------
Aerospace (1.63%)
45,000 AAR Corp. 810,000
20,000 General Dynamics Corporation 1,248,750
-------------------
2,058,750
-------------------
Banking (4.70%)
70,000 Bank Of New York Co., Inc. 2,340,625
39,900 Firstar Corp. 1,022,437
65,000 Wells Fargo Company 2,575,625
-------------------
5,938,687
-------------------
Beverages (0.96%)
40,000 PepsiCo., Inc. 1,210,000
-------------------
Broadcasting (2.53%)
40,000 Clear Channel Communications** 3,195,000
-------------------
Business Services (1.84%)
50,000 Navigant Consulting, Inc.** 2,318,750
-------------------
Cable TV (0.06%)
2,500 Insight Communications** 71,562
-------------------
Chemicals (2.20%)
45,000 Monsanto Co. 1,605,937
25,000 Rohm & Haas Co. 903,125
15,000 Solutia 268,125
-------------------
2,777,187
-------------------
Computer Hardware (7.43%)
40,500 CISCO Systems, Inc.** 2,776,781
20,000 IBM 2,427,500
45,000 Sun Microsystems, Inc.** 4,185,000
-------------------
9,389,281
-------------------
Computer - Software and Peripheral (6.52%)
30,000 Lexmark International Group** 2,415,000
35,000 Microsoft Corporation** 3,169,687
25,000 Oracle Corp.** 1,137,500
20,000 Veritas Software Corp.** 1,518,750
-------------------
8,240,937
-------------------
Consumer Goods & Services (2.42%)
80,000 Clorox 3,060,000
-------------------
Diversified (4.11%)
45,000 Kansas City Southern Inds. 2,089,688
30,000 Tyco International, Ltd. 3,097,500
-------------------
5,187,188
-------------------
Electrical & Electronic (1.70%)
43,400 Jabil Circuit, Inc.** 2,148,300
-------------------
Energy (1.74%)
75,000 USX-Marathon Group 2,193,750
-------------------
Entertainment (4.51%)
65,000 Hasbro Incorporated 1,393,438
35,000 Time Warner Inc. 2,126,250
26,700 Univision Communications** 2,172,712
-------------------
5,692,400
-------------------
Financial Services (9.77%)
40,300 Assoc. First Capital "A" 1,450,800
45,000 AXA Financial, Inc. 2,511,562
16,000 Fannie Mae 1,003,000
50,000 Franklin Resources, Inc. 1,537,500
15,000 Lehman Brothers Holdings, Inc. 874,688
20,000 Morgan Stanley Dean Witter & Co. 1,783,750
65,000 Nationwide Financial Services 2,299,375
33,000 Southwest Securities 891,000
-------------------
12,351,675
-------------------
Health Care Products and Services (2.84%)
40,000 Cardinal Health, Inc. 2,180,000
53,000 Sunrise Assisted Living, Inc.** 1,407,813
-------------------
3,587,813
-------------------
Home Furnishings (1.13%)
50,000 Newell Rubbermaid, Inc. 1,428,125
-------------------
Insurance (0.55%)
15,000 MBIA Inc. 699,375
-------------------
Internet Related (0.58%)
8,000 Network Solutions 735,000
-------------------
Internet Service Providers (0.82%)
10,000 America Online, Inc.** 1,040,000
-------------------
Medical Equipment & Supplies (3.55%)
25,000 Bausch & Lomb, Inc. 1,648,438
80,000 Medtronic, Inc. 2,840,000
-------------------
4,488,438
-------------------
Oil & Gas Exploration Products & Services (4.64%)
40,000 Enron Corp. 1,650,000
20,000 Halliburton Co. 820,000
140,000 R&B Falcon Corporation** 1,837,500
25,000 Schlumberger, Ltd. 1,557,813
-------------------
5,865,313
-------------------
Pharmaceuticals (8.81%)
35,000 American Home Products Corp. 1,452,500
81,000 Elan Corp. ADR** 2,718,562
50,000 Mylan Laboratories 918,750
78,000 Pfizer, Inc. 2,803,125
30,000 Warner Lambert Co. 1,991,250
41,000 Watson Pharmaceutical Inc.** 1,253,063
-------------------
11,137,250
-------------------
Resorts and Entertainment (1.91%)
55,500 Carnival Cruise Lines 2,414,250
-------------------
Retail - General Merchandise (0.69%)
47,000 Rent-A-Center, Inc.** 875,375
-------------------
Retail - Specialty Stores (6.56%)
42,000 CVS Corp. 1,714,125
42,000 Lowe's Cos. 2,047,500
155,000 Staples, Inc.** 3,380,938
30,000 Zale Corporation** 1,149,375
-------------------
8,291,938
-------------------
Technology (2.67%)
30,000 Texas Instruments 2,467,500
20,000 Unisys** 902,500
-------------------
3,370,000
-------------------
Telecommunications Services & Equipment (8.32%)
26,000 ADC Telecommunications Inc.** 1,090,375
48,000 AT&T Corp. 2,088,000
25,000 MCI WorldCom, Inc.** 1,796,875
20,000 Motorola, Inc. 1,760,000
74,000 Nortel Networks Corp. 3,774,000
-------------------
10,509,250
-------------------
Total Common Stocks 122,651,219
-------------------
Mutual Funds (1.70%)
4,054,966 Government Assets Fund, 5.24%* 4,054,966
-------------------
Total Investments in Securities (100.27%)
(Cost $113,460,636) $126,706,185
-------------------
Other Assets & Liabilities (-0.27%) (335,293)
-------------------
NET ASSETS (100.00%) $126,370,892
===================
- ---------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
Unrealized Appreciation.....$21,383,672
Unrealized Depreciation.....($8,138,123)
Net Unrealized Appreciation.$13,245,549
* Rate shown is as of September 30, 1999.
** Represents non-income producing securities.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $147,202,031 149,850,235 $45,694,038 $52,715,698 $27,807,569
Repurchase agreements 19,467,885 39,112,468 ----- ----- -----
---------- --------- --------- --------- ---------
Total Investments (Cost $166,669,916; $188,962,703;
$45,694,038; $53,235,283; $28,324,521;
$105,798,981; $50,104,175; $79,579,508;
$350,746,333; $113,460,636)
Total Investments 166,669,916 188,962,703 45,694,038 52,715,698 27,807,569
Cash ----- 1 ----- ----- -----
Interest and dividends receivable 2,828 1,513,017 371,907 763,044 386,713
Receivable from brokers for investments sold ----- ----- ----- ----- -----
Receivable for capital shares issued ----- ----- ----- 12,333 661
Prepaid expenses ----- 1,831 ----- ----- -----
---------- --------- --------- --------- ---------
Total Assets 166,672,744 190,477,552 46,065,945 53,491,075 28,194,943
---------- --------- --------- --------- ---------
LIABILITIES:
Dividends payable 634,730 654,607 102,070 229,771 134,121
Payable to brokers for investments purchased ----- ----- 2,031,722 ----- 285,363
Payable for capital shares redeemed 12 ----- ----- 6,272 1,255
Accrued expenses and other payables:
Investment Advisory fees 52,019 53,433 13,512 22,369 12,518
Administration fees 31,212 32,060 8,107 11,632 5,918
Accounting fees 4,459 4,580 1,160 1,342 683
Distribution fees ----- 96,303 1,726 ----- -----
Servicing Fees ----- 78,589 9,847 ----- -----
Other 34,058 ----- 241 17,002 725
---------- --------- --------- --------- ---------
Total Liabilities 756,490 919,572 2,168,385 288,388 440,583
---------- --------- --------- --------- ---------
Net Assets 165,916,254 189,557,980 43,897,560 53,202,687 27,754,360
========== ========= ========= ========= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSETS:
Paid-in capital 165,932,620 189,557,980 43,897,560 53,980,739 28,275,981
Accumulated undistributed (distributions in excess of)
net investment income ----- ----- ----- 373 -----
Net unrealized appreciation on investments ----- ----- ----- (519,585) (516,952)
Accumulated undistributed net realized gains (losses)
on investment transactions (16,366) ----- ----- (258,840) (4,669)
---------- --------- --------- --------- -----------
========== ========= ========= ========== ===========
Net Assets 165,916,254 189,557,980 43,897,560 53,202,687 27,754,360
========== ========= ========= ========= ===========
Capital Shares Outstanding 5,405,215 2,880,583
========== ===========
Net asset value--offering and redemption price per share 9.84 9.63
========== ===========
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $87,252,154 $6,269,512
========== ==========
Shares outstanding, $.001 par value 87,252,154 6,269,512
========== ==========
Net asset value--offering and redemption price per share $1.00 $1.00
========== ==========
PRICING OF S2 SHARES
Net assets applicable to S2 Shares outstanding $12,188,301
===========
Shares outstanding, $.001 par value 12,188,301
===========
Net asset value--offering and redemption price per share $1.00
===========
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $165,916,254 $42,507,261 $11,683,276
============ =========== ===========
Shares outstanding, $.001 par value 165,932,620 42,507,261 11,683,276
============ =========== ===========
Net asset value--offering and redemption price per share $1.00 $1.00 $1.00
============ =========== ===========
PRICING OF I SHARES
Net assets applicable to I Shares outstanding $47,610,264 $25,944,772
=========== ===========
Shares outstanding, $.001 par value 47,610,264 25,944,772
=========== ===========
Net asset value--offering and redemption price per share $1.00 $1.00
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $103,461,293 $50,101,267 $88,346,056 $510,031,587 $126,706,185
Repurchase agreements ----- ----- ----- ----- -----
Total Investments (Cost $166,669,916; $188,962,703; ------------ ----------- ----------- ------------ ------------
$45,694,038; $53,235,283; $28,324,521;
$105,798,981; $50,104,175; $79,579,508;
$350,746,333; $113,460,636)
Total Investments 103,461,293 50,101,267 88,346,056 510,031,587 126,706,185
Cash ----- ----- ----- ----- -----
Interest and dividends receivable 1,408,351 723,123 459,427 261,848 78,770
Receivable from brokers for investments sold ----- ----- ----- 8,884,165 -----
Receivable for capital shares issued 173,299 65,000 40,737 242,317 567,524
Prepaid expenses ----- ----- ----- ----- -----
------------- ----------- ---------- ----------- -----------
Total Assets 105,042,943 50,889,390 88,846,220 519,419,917 127,352,479
------------- ----------- ---------- ----------- -----------
LIABILITIES:
Dividends payable 513,505 168,536 398,859 ----- -----
Payable to brokers for investments purchased 458,076 ----- ----- 7,818,668 732,000
Payable for capital shares redeemed 21,679 17 308,461 253,901 57,272
Accrued expenses and other payables:
Investment Advisory fees 51,342 21,080 55,314 204,153 102,128
Administration fees 22,248 10,962 19,175 235,721 27,951
Accounting fees 2,567 1,265 2,212 13,065 3,225
Distribution fees ----- ----- ----- ----- -----
Servicing Fees ----- ----- ----- 55,047 -----
Other 23,163 26,567 67,537 79,044 59,011
---------- --------- --------- --------- ---------
Total Liabilities 1,092,580 228,427 851,558 8,659,599 981,587
---------- --------- --------- --------- ---------
Net Assets 103,950,363 50,660,963 87,994,662 510,760,318 126,370,892
========== ========= ========= =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSETS:
Paid-in capital...................................... $108,232,479 $50,537,342 $70,145,995 $262,955,827 $92,045,013
Undistributed (distributions in excess of)
net investment income.............................. (7) (407) 246 (1,440,004) (1,180,435)
Net unrealized appreciation on investments........... (2,337,688) (2,908) 8,766,548 159,285,254 13,245,549
Accumulated net realized gains (losses)
on investment transactions......................... (1,944,421) 126,936 9,081,873 89,959,241 22,260,765
============== ============== ============== ============== ===========
Net Assets....................................... $103,950,363 $50,660,963 $87,994,662 $510,760,318 $126,370,892
============== ============== ============== ============== ===========
Outstanding units of beneficial interest (shares).... 10,687,953 4,901,971 5,573,710 7,150,055
============== ============== ============== ===========
Net asset value--offering and redemption price per share $9.73 $10.33 $15.79 $17.67
============== ============== ============== ===========
PRICING OF S SHARES
Net assets applicable to S Shares outstanding.................... $270,511,864
==============
Shares outstanding, $.001 par value*................................ 11,872,226
==============
Net asset value--offering and redemption price per share $22.79
==============
PRICING OF T SHARES
Net assets applicable to T Shares outstanding...................... $240,248,454
==============
Shares outstanding, $.001 par value*.................................. 10,514,547
==============
Net asset value--offering and redemption price per share $22.85
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED BOND
ASSETS ASSETS ASSETS TERM BOND FUND
FUND FUND FUND FUND
---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $4,387,985 $4,377,571 $761,320 $1,602,073 $887,157
Dividend income
-------------- -------------- -------------- -------------- --------
-------------- -------------- -------------- -------------- --------
Total Income 4,387,985 4,377,571 761,320 1,602,073 887,157
-------------- -------------- -------------- -------------- --------
EXPENSES: (Note 4)
Investment advisory fees 353,721 295,934 79,250 135,094 71,453
Administration fees 185,704 177,560 49,781 70,249 33,778
Distribution and shareholder service fees S Shares ----- 291,473 13,997 ----- -----
Distribution and shareholder service fees S2 Shares ----- 19,599 ----- ----- -----
Distribution and shareholder service fees T Shares ----- 31,098 9,683 ----- -----
Custody Fees 5,632 22,057 11,506 3,228 4,483
Accounting Fees 26,529 25,366 6,793 8,105 3,897
Legal Fees 3,169 3,676 1,296 1,006 490
Audit Fees 7,744 9,047 3,249 2,527 1,197
Directors' Fees 6,213 4,498 1,496 1,767 875
Transfer Agent Fees 47,112 31,549 9,189 16,975 9,394
Registration and Filing Fees 1,897 6,547 1,328 483 1,363
Printing Fees 4,826 5,680 1,958 1,599 730
Other 11,655 18,353 3,941 8,096 5,726
-------------- -------------- -------------- -------------- --------
Total Expenses 654,202 942,437 193,467 249,129 133,386
Less: Expenses voluntarily reduced/waived (44,215) ----- (2,231) ----- -----
-------------- -------------- -------------- ------------------------
Net Expenses 609,987 942,437 191,236 249,129 133,386
-------------- -------------- -------------- -------------- --------
Net Investment Income (Loss) 3,777,998 3,435,134 570,084 1,352,944 753,771
-------------- -------------- -------------- -------------- --------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains from investment transactions ----- ----- ----- (90,260) 297
Net change in unrealized appreciation (depreciation)
from investments ----- ----- ----- (753,845) (665,707)
-------------- -------------- -------------- -------------- --------
Net realized and unrealized gains ( losses) from investments ----- ----- ----- (844,105) (665,410)
-------------- -------------- -------------- -------------- --------
============== ============== ============== ============== ========
Change in net assets resulting from operations $3,777,998 $3,435,134 $570,084 $508,839 $88,361
============== ============== ============== ============== ========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Income Municipal Aggressive
Fund Bond Balanced Equity Growth
Fund Fund Fund Fund
---------- ---------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................................... $3,476,928 $1,198,078 $1,083,083 $107,353 $62,950
Dividend income.......................................... ----- ----- 232,406 2,758,100 369,878
---------- ---------- ----------- ------------ ------------
Total Income 3,476,928 1,198,078 1,315,489 2,865,453 432,828
---------- ---------- ----------- ------------ ------------
EXPENSES: (Note 4)
Investment advisory fees................................. 311,854 126,600 339,507 2,039,741 610,056
Administration fees...................................... 135,137 65,832 117,696 707,113 166,963
Distribution and adminstrative service fees S Shares..... ----- ----- ----- 333,338 -----
Distribution and adminstrative service fees S2 Shares.... ----- ----- ----- ----- -----
Distribution and adminstrative service fees T Shares..... ----- ----- ----- ----- -----
Custody fees............................................. 4,966 3,833 6,782 5,575 5,538
Accounting fees.......................................... 15,592 7,596 13,580 81,588 19,265
Legal fees............................................... 2,243 1,023 1,999 8,589 2,354
Audit fees............................................... 5,576 2,552 4,952 21,410 5,846
Director's fees.......................................... 4,026 1,881 3,472 15,061 4,183
Transfer Agent fees...................................... 21,218 16,586 50,142 113,925 49,456
Registration and filing fees............................. 591 390 2,378 4,996 1,810
Printing fees............................................ 3,515 1,661 2,822 12,595 3,461
Other fees............................................... 10,837 5,483 9,733 16,357 6,982
---------- ---------- ----------- ------------ ------------
Total Expenses 515,555 233,437 553,063 3,360,288 875,914
Less: Expenses voluntarily reduced/waived............... ----- ----- ----- ----- -----
---------- ---------- ----------- ------------ ------------
Net Expenses............................................. 515,555 233,437 553,063 3,360,288 875,914
---------- ---------- ----------- ------------ ------------
Net Investment Income (Loss)............................. 2,961,373 964,641 762,426 (494,835) (443,086)
---------- ---------- ----------- ------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions............................... (158,920) (21,856) 6,964,582 50,160,516 14,941,559
Net change in unrealized appreciation (depreciation)
from investments...................................... (2,526,076) (1,585,864) (8,255,584) (51,796,945) (14,518,423)
---------- ---------- ------------ ------------ ------------
Net realized and unrealized gains
(losses) from investments............................. (2,684,996) (1,607,720) (1,291,002) (1,636,429) 423,136
---------- ---------- ------------ ------------ ------------
Change in net assets resulting from operations........... $276,377 ($643,079) ($528,576) ($2,131,264) ($19,950)
========== ========== ============ ============ ============
</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
--------------------------------------- ---------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999 SEPTEMBER 30, 1999 MARCH 31, 1999
-------------------- ----------------- -------------------- -----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $3,777,998 $6,698,447 $3,435,134 $5,651,439
Net realized gains/(losses) from investment transa ------ ------ ------ ------
Net change in unrealized appreciation/(depreciation) ------ ------ ------ ------
from investments ----------- ----------- ----------- ----------
Change in net assets resulting from operations 3,777,998 6,698,447 3,435,134 5,651,439
----------- ----------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ----- ----- -----
S Shares ------ ----- (1,708,720) (3,238,515)
S2 Shares ------ ----- (199,526) (372,466)
T Shares (3,777,851) (6,695,405) (896,551) (1,276,647)
I Shares ------ ----- (630,337) (763,811)
From net realized gains
Capital Shares ------ ----- ----- -----
S Shares ------ ----- ----- -----
T Shares ------ ----- ----- -----
----------- ---------- ----------- -----------
Change in net assets from shareholder distribution(3,777,851) (6,695,405) (3,435,134) (5,651,439)
----------- ---------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 268,410,014 506,680,611
S2 Shares ------ ------ 58,111,680 148,619,946
T Shares 426,605,563 588,440,372 100,855,810 193,368,939
I Shares ------ ------ 98,993,222 64,949,688
REINVESTMENTS:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 15 23,684
T Shares 802,455 1,516,951 160,363 212,019
I Shares ------ ------ 124,236 115,123
REDEMPTIONS:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (258,500,521) (498,876,025)
S2 Shares ------ ------ (54,175,247) (145,821,496)
T Shares (411,498,035) (595,083,750) (92,182,093) (176,055,191)
I Shares ------ ------ (68,258,422) (62,042,443)
----------- ----------- ----------- ------------
Change in net assets from capital transactions 15,909,983 (5,126,427) 53,539,057 31,174,855
----------- ---------- ----------- ------------
Change in net assets 15,910,130 (5,123,385) 53,539,057 31,174,855
NET ASSETS:
Beginning of period 150,006,124 155,129,509 136,018,923 104,844,068
=========== =========== =========== ============
End of period $165,916,254 $150,006,124 $189,557,980 $136,018,923
=========== =========== =========== ============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 268,410,014 506,680,611
S2 Shares ------ ------ 58,111,680 148,619,946
T Shares 426,605,563 588,440,372 100,855,810 193,368,939
I Shares ------ ------ 98,993,222 64,949,688
REINVESTMENTS:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 15 23,684
T Shares 802,455 1,516,951 160,363 212,019
I Shares ------ ------ 124,236 115,123
REDEMPTIONS:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (258,500,521) (498,876,025)
S2 Shares ------ ------ (54,175,247) (145,821,496)
T Shares (411,498,035) (595,083,750) (92,182,093) (176,055,191)
I Shares ------ ------ (68,258,422) (62,042,443)
=========== =========== =========== ===========
Change In Shares 15,909,983 (5,126,427) 53,539,057 31,174,855
=========== =========== =========== ===========
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</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
--------------------------------------- ------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999 SEPTEMBER 30, 1999 MARCH 31, 1999
-------------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $570,084 $1,090,382 $1,352,944 $2,548,564
Net realized gains/(losses) from investment transactions ------ ------ (90,260) 41,156
Net change in unrealized appreciation/(depreciation) from investments ------ ------ (753,845) (40,683)
---------------- -------------- --------------- --------------
Change in net assets resulting from operations 570,084 1,090,382 508,839 2,549,037
---------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ (1,352,572) (2,542,863)
S Shares (77,580) (176,946) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (159,735) (338,594) ------ ------
I Shares (332,769) (574,842) ------ ------
From net realized gains
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
---------------- -------------- --------------- --------------
Change in net assets from shareholder distributions (570,084) (1,090,382) (1,352,572) (2,542,863)
---------------- -------------- --------------- --------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 7,476,014 33,194,746
S Shares 20,281,193 39,656,976 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 13,296,225 44,999,698 ------ ------
I Shares 45,843,692 84,067,686 ------ ------
REINVESTMENTS:
Capital Shares ------ ------ 825,928 1,840,120
S Shares ------ ------ ------ ------
T Shares 9,054 5,553 ------ ------
I Shares 3,034 8,549 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (10,260,737) (16,812,474)
S Shares (21,906,134) (38,864,113) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (16,571,100) (42,060,727) ------ ------
I Shares (42,306,596) (81,681,844) ------ ------
---------------- -------------- --------------- --------------
Change in net assets from capital transactions (1,350,632) 6,131,778 (1,958,795) 18,222,392
---------------- -------------- --------------- --------------
Change in net assets (1,350,632) 6,131,778 (2,802,528) 18,228,566
NET ASSETS:
Beginning of period 45,248,192 39,116,414 56,005,215 37,776,649
================ ============== =============== ==============
End of period $43,897,560 $45,248,192 $53,202,687 $56,005,215
================ ============== =============== ==============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 753,123 3,300,867
S Shares 20,281,193 39,656,976 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 13,296,225 44,999,698 ------ ------
I Shares 45,843,692 84,067,686 ------ ------
REINVESTMENTS:
Capital Shares ------ ------ 83,307 182,981
S Shares ----- ----- ------ ------
T Shares 9,054 5,553 ------ ------
I Shares 3,034 8,549 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (1,029,476) (1,667,952)
S Shares (21,906,134) (38,864,113) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (16,571,100) (42,060,727) ------ ------
I Shares (42,306,596) (81,681,844) ------ ------
================ ============== =============== ==============
Change In Shares (1,350,632) 6,131,778 (193,046) 1,815,896
================ ============== =============== ==============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND INCOME FUND
--------------------------------------- -----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999 SEPTEMBER 30, 1999 MARCH 31, 1999
-------------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $753,771 $990,434 $2,961,373 $5,231,869
Net realized gains/(losses) from investment transactions 297 9,339 (158,920) 646,775
Net change in unrealized appreciation/(depreciation) from investments (665,707) (26,406) (2,526,076) (1,201,868)
-------------- ------------ --------------- -------------
Change in net assets resulting from operations 88,361 973,367 276,377 4,676,776
-------------- ------------ --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (753,771) (997,929) (2,961,380) (5,331,510)*
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
From net realized gains
Capital Shares ------ (45,854) ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
-------------- ------------ --------------- -------------
Change in net assets from shareholder distributions (753,771) (1,043,783) (2,961,380) (5,331,510)
-------------- ------------ --------------- -------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 8,252,831 18,750,018 17,207,157 27,829,387
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 416,019 648,234 360,887 707,512
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (2,232,580) (4,557,532) (11,273,253) (32,145,684)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
-------------- ------------ --------------- -------------
Change in net assets from capital transactions 6,436,270 14,840,720 6,294,791 (3,608,785)
-------------- ------------ --------------- -------------
Change in net assets 5,770,860 14,770,304 3,609,788 (4,263,519)
NET ASSETS:
Beginning of period 21,983,500 7,213,196 100,340,575 104,604,094
============== ============ =============== =============
End of period $27,754,360 $21,983,500 $103,950,363 $100,340,575
============== ============ =============== =============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 842,616 1,883,976 1,744,981 2,745,993
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 42,732 65,135 36,717 69,812
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (229,619) (455,900) (1,148,796) (3,182,951)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
============== ============ =============== =============
Change In Shares 655,729 1,493,211 632,902 (367,146)
============== ============ =============== =============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
MUNICIPAL BOND FUND BALANCED FUND
--------------------------------------- ------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999 SEPTEMBER 30, 1999 MARCH 31, 1999
-------------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $964,641 $1,896,320 $762,426 $1,114,067
Net realized gains/(losses) from investment transactions (21,856) 219,081 6,964,582 3,463,631
Net change in unrealized appreciation/(depreciation) from investment(1,585,864) 177,852 (8,255,584) 4,347,436
-------------- -------------- -------------- --------------
Change in net assets resulting from operations (643,079) 2,293,253 (528,576) 8,925,134
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (965,048) (1,896,049) (762,180) (1,108,471)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
From net realized gains
Capital Shares ------ (70,290) ------ (2,937,377)
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
-------------- -------------- -------------- --------------
Change in net assets from shareholder distributions (965,048) (1,966,339) (762,180) (4,045,848)
-------------- -------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 5,815,536 10,367,989 12,527,829 33,056,168
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 123,144 297,011 647,408 3,863,015
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (3,619,683) (9,323,485) (9,313,935) (19,777,192)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
-------------- -------------- -------------- --------------
Change in net assets from capital transactions 2,318,997 1,341,515 3,861,302 17,141,991
-------------- -------------- -------------- --------------
Change in net assets 710,870 1,668,429 2,570,546 22,021,277
NET ASSETS:
Beginning of period 49,950,093 48,281,664 85,424,116 63,402,839
============== ============== ============== ==============
End of period $50,660,963 $49,950,093 $87,994,662 $85,424,116
============== ============== ============== ==============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 554,794 970,809 772,771 2,178,133
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 11,716 27,811 39,748 254,541
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (345,544) (870,874) (575,575) (1,307,414)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
============== ============== ============== ==============
Change In Shares 220,966 127,746 236,944 1,125,260
============== ============== ============== ==============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUND AGGRESSIVE GROWTH FUND
--------------------------------------- ------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1999 MARCH 31, 1999 SEPTEMBER 30, 1999 MARCH 31, 1999
-------------------- ----------------- -------------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) ($494,835) ($948,314) ($443,086) ($737,349)
Net realized gains/(losses) from investment transactions 50,160,516 56,474,170 14,941,559 11,696,663
Net change in unrealized appreciation/(depreciation) from investm(51,796,945) 17,129,688 (14,518,423) (9,473)
--------------- --------------- --------------- ---------------
Change in net assets resulting from operations (2,131,264) 72,655,544 (19,950) 10,949,841
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ ------ ------
S Shares ------ (60,302) ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ (148,763) ------ ------
I Shares ------ ------ ------ ------
From net realized gains
Capital Shares ------ ------ ------ (6,117,507)
S Shares ------ (12,631,718) ------ ------
T Shares ------ (15,888,358) ------ ------
--------------- --------------- --------------- ---------------
Change in net assets from shareholder distributions 0 (28,729,141) 0 (6,117,507)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 27,065,882 33,773,139
S Shares 47,916,234 80,875,903 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 18,717,014 52,395,875 ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares ------ ------ ------ 2,844,440
S Shares ------ 12,008,071 ------ ------
T Shares ------ 6,539,800 ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (22,227,070) (21,275,145)
S Shares (29,329,647) (54,985,567) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (58,422,749) (78,764,367) ------ ------
I Shares ------ ------ ------ ------
--------------- --------------- --------------- ---------------
Change in net assets from capital transactions (21,119,148) 18,069,715 4,838,812 15,342,434
--------------- --------------- --------------- ---------------
Change in net assets (23,250,412) 61,996,118 4,818,862 20,174,768
NET ASSETS:
Beginning of period 534,010,730 472,017,666 121,552,030 101,377,262
=============== =============== =============== ===============
End of period $510,760,318 $534,010,730 $126,370,892 $121,552,030
=============== =============== =============== ===============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 1,493,371 2,025,571
S Shares 2,045,876 3,783,085 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 795,467 2,524,695 ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares ------ ------ ------ 170,598
S Shares ------ 590,153 ------ ------
T Shares ------ 320,512 ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (1,237,593) (1,269,959)
S Shares (1,246,862) (2,651,754) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (2,506,215) (3,694,248) ------ ------
I Shares ------ ------ ------ ------
=============== =============== =============== ===============
Change In Shares (911,734) 872,443 255,778 926,210
=============== =============== =============== ===============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
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. The net assets and number of shares outstanding
for the acquired Funds at the close of business on February 13, 1998, were as
follows:
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 $154,473,179 154,473,149
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 $154,473,179 154,473,149
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
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
Liquid Assets Fund and Municipal Assets Fund offer three 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 each class bears separate distribution and/or shareholder
servicing fees. Liquid Assets Fund also offers S2 Shares 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 daily
dividends in the same manner as T Shares except each class bears separate
distribution and/or shareholder administrative servicing fees.
Each class of shares has equal rights to earnings, assets, and voting privileges
except each class bears different distribution expenses. Each class of shares
has exclusive voting rights on matters affecting only 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.
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 adviser 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 Funds may engage in repurchase agreements with financial institutions such
as banks, brokers, or dealers that the investment adviser, 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.
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 five 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 seven days' written notice. The
Trust and the Trust Certificates are diversified through a limitation on
certificates sold by any individual bank. Each individual bank may not sell more
than five percent of the outstanding Trust Certificates.
SECURITIES PURCHASED ON A WHEN-ISSUED OF 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.
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 Limited Term Bond Fund, the Vintage Bond Fund, the Vintage Income Fund
and the Vintage Municipal Bond Fund. Dividends from net investment income are
declared and paid quarterly for 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 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.
EXPENSES
Expenses directly related to one of the Funds are charged 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
six-month period ended September 30, 1999 are as follows:
Proceeds
Purchases from Sales
Limited Term Bond Fund......................$11,092,617 $5,108,360
Bond Fund....................................$8,592,611 $178,063
Income Fund.................................$24,949,618 $14,361,666
Municipal Bond Fund..........................$6,152,530 $3,580,575
Balanced Fund...............................$32,713,792 $28,082,179
Equity Fund................................$251,033,578 $275,012,693
Aggressive Growth Fund............... ......$77,470,585 $74,760,607
4........RELATED PARTY TRANSACTIONS:
Under the terms of its Investment Advisory Agreement, Investors Management Group
(IMG), a wholly owned subsidiary of AMCORE Financial, Inc., is entitled to
receive fees computed daily 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 0.50 percent
Vintage Bond Fund 0.55 percent
Vintage Income Fund 0.60 percent
Vintage Municipal Bond Fund 0.50 percent
Vintage Balanced Fund 0.75 percent
Vintage Equity Fund 0.75 percent
Vintage Aggressive Growth Fund 0.95 percent
IMG voluntarily limits advisory fees for the Government Assets Fund to 0.35
percent.
The Funds have 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, the
Liquid Assets Fund and the Municipal Assets Fund and 0.26 percent of the average
daily net assets for all other Vintage Mutual Funds.
The Funds have 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. During the six-month period ended September
30, 1999, AMCORE Financial, Inc. received $37,360, $12,775, and $332,115 from
the Liquid Assets Fund, the Municipal Assets Fund, and the Vintage Equity Fund,
respectively.
BISYS Fund Services Limited Partnership serves as distributor to the Fund
pursuant to a Distribution Agreement. The Distributor receives no compensation
under the Distribution Agrement 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 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
Adviser 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., ("BISYS") 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 of 0.03
percent of the average daily net assets of each Fund for such services.
<PAGE>
SUPPLEMENTAL INFORMATION:
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as
independent auditors of the Fund pursuant to an agreement by
PricewaterhouseCoopers LLP (PWC) to acquire McGladrey's investment company
practice. The McGladrey partners and professionals serving the Fund at the
time of the acquisition joined PWC. The report of McGladrey on the
financial statements of the Fund during the past fiscal year contained no
adverse opinion or disclaimer of opinion and was not qualified or modified
as to uncertainty, audit scope or accounting principles. In connection with
its audit for the most recent fiscal year and through August 13, 1999,
there were no disagreements with McGladrey on any matter of acccounting
principle or practices, financial statement disclosure, or auditing scope
or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of
disagreement in connection with its report. On September 29, 1999, the
Fund, with the approval of its Audit Committee, engaged PWC as its
independent auditors.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES: DIVIDENDS & DISTRIBUTIONS:
-------------------------------------------------- ----------------------------------
From Net Total
NAV Net Net Realized/ Total from From Net Realized and Dividends
BEGINNING Investment Unrealized Investment Investment Unrealized and
OF PERIOD Income Gains/(Losses) Activities Income Gains Distributions
--------- ------ -------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND
Six Months Ended September 30, 1999 (unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
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)
LIQUID ASSETS FUND "S" SHARES
Six Months Ended September 30, 1999 (unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended March 31, 1999 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
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)
LIQUID ASSETS FUND "S2" SHARES
Six Months Ended September 30, 1999 (unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended March 31, 1999 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
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
Six Months Ended September 30, 1999 (unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
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
Six Months Ended September 30, 1999 (unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
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
Six Months Ended September 30, 1999 (unaudited) $1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01)
Year Ended March 31, 1999 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
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)
MUNICIPAL ASSETS FUND "T" SHARES
Six Months Ended September 30, 1999 (unaudited) $1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01)
Year Ended March 31, 1999 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
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
Six Months Ended September 30, 1999 (unaudited) $1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01)
Year Ended March 31, 1999 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
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
Six Months Ended September 30, 1999 (unaudited) $10.00 0.25 (0.16) 0.09 (0.25) 0.00 (0.25)
Year Ended March 31, 1999 $9.99 0.49 0.00 0.49 (0.48) 0.00 (0.48)
Year Ended March 31, 1998 $9.69 0.46 0.35 0.81 (0.51)(c) 0.00 (0.51)
Year Ended March 31, 1997 $9.89 0.50 (0.20) 0.30 (0.50) 0.00 (0.50)
June 15, 1995 to March 31, 1996* $10.00 0.44 (0.11) 0.33 (0.43) (0.01) (0.44)
</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
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
--------------------------------------------------------------------------------------------------
Ratio of Ratio of Net Ratio of Ratio of Net
NAV Net Assets Expenses to Investment Expenses to Investment
END Total End of Period Average Income to Average Income to Portfolio
OF PERIOD Return (000 omitted) Net Assets Average Net Assets Net Assets** Average Net Assets** Turnover
--------- ------ ------------- ----------- ------------------ ------------ -------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$1.00 2.14% (a) $165,916 0.70% (b) 4.30% (b) 0.75% (b) 4.25% (b)
$1.00 4.61% $150,006 0.73% 4.49% 0.76% 4.46%
$1.00 4.72% $155,130 0.73% 4.79% 0.98% 4.54%
$1.00 4.62% $158,698 0.76% 4.53% 1.01% 4.28%
$1.00 5.24% $153,836 0.54% 5.08% 0.72% 4.90%
$1.00 4.32% $137,888 0.50% 4.26% 0.98% 3.78%
$1.00
$1.00 1.91% (a) $87,252 1.36% (b) 3.82% (b) ----- -----
$1.00 4.18% $77,343 1.34% 4.08% ----- -----
$1.00 3.43% (a) $69,514 1.20% (b) 4.57% (b) ----- -----
$1.00 4.46% $60,663 1.20% 4.46% ----- -----
$1.00 4.68% $179,633 1.20% 4.68% ----- -----
$1.00 4.66% $167,085 1.20% 4.66% ----- -----
$1.00 2.66% $141,018 1.18% 2.66% ----- -----
$1.00
$1.00 2.03% (a) $12,188 1.11% (b) 4.07% (b) ----- -----
$1.00 4.44% $8,252 1.09% 4.32% ----- -----
$1.00 3.68% (a) $5,453 0.87% (b) 4.91% (b) ----- -----
$1.00 1.66% (a) $1,773 0.85% (b) 4.79% (b) 0.95% 4.69%
$1.00
$1.00 2.16% (a) $42,507 0.86% (b) 4.32% (b) ----- -----
$1.00 4.70% $33,673 0.84% 4.54% ----- -----
$1.00 3.81% (a) $16,147 0.70% (b) 5.07% (b) ----- -----
$1.00 2.51% (a) $17,859 0.70% (b) 4.96% (b) ----- -----
$1.00
$1.00 2.23% (a) $25,945 0.71% (b) 4.47% (b) ----- -----
$1.00 4.86% $16,751 0.69% 4.67% ----- -----
$1.00 3.98% (a) $13,729 0.47% (b) 5.31% (b) ----- -----
$1.00 3.51% (a) $2,356 0.45% (b) 5.19% (b) ----- -----
$1.00
$1.00 1.11% (a) $6,270 1.14% (b) 2.22% (b) 1.15% (b) 2.21% (b)
$1.00 2.47% $7,894 1.12% 2.41% 1.19% 2.34%
$1.00 2.13% (a) $7,102 0.94% (b) 2.84% (b) ----- -----
$1.00 2.90% $4,664 0.93% 2.90% 1.15% 2.68%
$1.00 2.64% $10,146 1.48% 2.64% ----- -----
$1.00 2.53% $16,130 1.38% 2.53% ----- -----
$1.00 1.53% $21,355 1.35% 1.53% ----- -----
$1.00
$1.00 1.24% (a) $11,683 0.89% (b) 2.47% (b) 0.90% (b) 2.46% (b)
$1.00 2.73% $14,949 0.87% 2.66% 0.94% 2.59%
$1.00 2.31% (a) $12,005 0.69% (b) 3.09% (b) ----- -----
$1.00 1.61% (a) $25,036 0.66% (b) 3.17% (b) 0.90% 2.93%
$1.00
$1.00 1.31% (a) $25,945 0.74% (b) 2.62% (b) 0.75% (b) 2.61% (b)
$1.00 2.88% $22,405 0.72% 2.81% 0.79% 2.74%
$1.00 2.49% (a) $20,010 0.46% (b) 3.32% (b) ----- -----
$1.00 1.20% (a) $7 0.41% (b) 3.42% (b) 0.65% 3.18%
$9.84 0.92% (a) $53,203 0.93% (b) 5.04% (b) ----- ----- 22.86%
$10.00 5.01% $56,005 1.05% 4.89% ----- ----- 31.08%
$9.99 8.51% $37,777 1.35% 4.60% 1.60% 4.35% 80.26%
$9.69 3.13% $38,835 1.40% 5.18% 1.65% 4.93% 70.63%
$9.89 3.40% (a) $41,178 1.18% (b) 5.53% (b) 1.18% (b) 5.53% (b) 69.30%
</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
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES: DIVIDENDS & DISTRIBUTIONS:
-------------------------------------------------- ----------------------------------
From Net Total
NAV Net Net Realized/ Total from From Net Realized and Dividends
BEGINNING Investment Unrealized Investment Investment Unrealized and
OF PERIOD Income Gains/(Losses) Activities Income Gains Distributions
--------- ------ -------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND FUND
Six Months Ended September 30, 1999 (unaudited) $9.88 0.30 (0.25) 0.05 (0.30) 0.00 (0.30)
Year Ended March 31, 1999 $9.86 0.53 0.04 0.57 (0.53) (0.02) (0.55)
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) 0.00 (0.43)
Bond Fund - Institutional Shares
May 1, 1997 to February 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
Six Months Ended September 30, 1999 (unaudited) $9.98 0.29 (0.25) 0.04 (0.29) 0.00 (0.29)
Year Ended March 31, 1999 $10.04 0.55 (0.04) 0.51 (0.57)(d) 0.00 (0.57)
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)
MUNICIPAL BOND FUND
Six Months Ended September 30, 1999 (unaudited) $10.67 0.20 (0.34) (0.14) (0.20) 0.00 (0.20)
Year Ended March 31, 1999 $10.60 0.40 0.08 0.48 (0.40) (0.01) (0.41)
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)
BALANCED FUND
Six Months Ended September 30, 1999 (unaudited) $16.01 0.13 (0.22) (0.09) (0.13) 0.00 (0.13)
Year Ended March 31, 1999 $15.05 0.24 1.60 1.84 (0.24) (0.64) (0.88)
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
Six Months Ended September 30, 1999 (unaudited) $22.90 (0.03) (0.08) (0.11) 0.00 0.00 0.00
Year Ended March 31, 1999 $21.04 (0.06) 3.21 3.15 (0.01) (1.28) (1.29)
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)
EQUITY FUND T SHARES
Six Months Ended September 30, 1999 (unaudited) $22.94 (0.02) (0.07) (0.09) 0.00 0.00 0.00
Year Ended March 31, 1999 $21.05 (0.01) 3.19 3.18 (0.01) (1.28) (1.29)
February 14, 1998 to March 31, 1998* $19.77 0.00 1.28 1.28 0.00 0.00 0.00
AGGRESSIVE GROWTH
Six Months Ended September 30, 1999 (unaudited) $17.63 (0.06) 0.10 0.04 0.00 0.00 0.00
Year Ended March 31, 1999 $16.99 (0.11) 1.70 1.59 0.00 (0.95) (0.95)
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
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
--------------------------------------------------------------------------------------------------
Ratio of Ratio of Net Ratio of Ratio of Net
NAV Net Assets Expenses to Investment Expenses to Investment
END Total End of Period Average Income to Average Income to Portfolio
OF PERIOD Return (000 omitted) Net Assets Average Net Assets Net Assets** Average Net Assets** Turnover
--------- ------ ------------- ----------- ------------------ ------------ -------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$9.63 0.30% (a) $27,754 1.03% (b) 5.83% (b) ----- ----- 13.22%
$9.88 5.95% $21,984 1.03% 5.46% ----- ----- 37.28%
$9.86 10.30% (a) $7,213 0.88% (b) 7.66% (b) ----- ----- 225.79%
$9.83 6.97% $3,201 0.83% 6.16% ----- ----- 42.22%
$9.78 2.10% (a) $3,642 0.80% (b) 6.24% (b) ----- ----- 60.43%
0
$10.01 10.11% $1,970 0.65% 6.76% ----- ----- 42.22%
$9.82 7.19% $4,360 0.63% 6.36% ----- ----- 42.22%
$9.79 2.27% (a) $4,363 0.60% (b) 6.40% (b) ----- ----- 60.43%
0
$9.73 0.31% (a) $103,950 1.00% (b) 5.73% (b) ----- ----- 21.63%
$9.98 5.13% $100,341 1.01% 5.51% ----- ----- 60.60%
$10.04 9.31% $104,604 1.15% 5.04% 1.40% 4.79% 52.03%
$9.70 3.14% $92,031 1.20% 5.52% 1.45% 5.27% 59.70%
$9.93 8.74% $84,752 0.97% 5.77% 0.97% 5.77% 113.25%
$9.71 3.46% $81,673 0.94% 5.53% 1.22% 5.26% 32.38%
0
$10.33 (1.32%)(a) $50,661 0.93% (b) 3.83% (b) ----- ----- 9.67%
$10.67 4.64% $49,950 0.94% 3.76% 1.04% 3.66% 13.87%
$10.60 7.89% $48,282 1.21% 3.76% 1.46% 3.51% 36.60%
$10.22 3.22% $45,164 1.28% 3.68% 1.53% 3.43% 21.00%
$10.27 7.43% $42,436 0.75% 4.21% 1.02% 3.94% 14.21%
$9.97 5.29% $30,717 0.73% 4.42% 1.30% 3.84% 5.77%
0
$15.79 (0.54%)(a) $87,995 1.23% (b) 1.70% (b) ----- ----- 35.03%
$16.01 12.66% $85,424 1.28% 1.61% ----- ----- 48.38%
$15.05 33.46% $63,403 1.38% 1.58% 1.63% 1.33% 101.32%
$11.72 11.05% $32,012 1.55% 1.58% 1.80% 1.33% 38.35%
$11.08 13.29% (a) $13,516 1.32% (b) 2.66% (b) 1.32% (b) 2.66% (b) 61.72%
0
$22.79 (0.48%)(a) $270,512 1.39% (b) (0.32%)(b) ----- ----- 47.27%
$22.90 15.72% $253,593 1.40% (0.34%) ----- ----- 59.22%
$21.05 45.54% $196,772 1.31% 0.08% 1.56% 0.33% 72.80%
$16.58 18.35% $309,669 1.33% 0.32% 1.58% 0.07% 37.08%
$14.48 29.96% $210,950 1.09% 0.96% 1.09% 0.96% 33.23%
$11.44 15.74% $149,233 1.07% 1.47% 1.35% 1.19% 20.54%
0
$22.85 (0.39%)(a) $240,248 1.14% (b) (0.06%)(b) ----- ----- 47.27%
$22.94 15.88% $280,418 1.15% (0.08%) ----- ----- 59.22%
$21.05 6.40% (a) $275,245 1.19% (b) 0.63% (b) 1.44% (b) 0.38% (b) 72.80%
$17.67 0.23% (a) $126,371 1.39% (b) (0.70%)(b) ----- ----- 59.29%
$17.63 9.85% $121,552 1.42% (0.69%) ----- ----- 61.90%
$16.99 46.82% $101,377 1.56% (0.74%) 1.81% (0.99%) 86.36%
$11.90 9.39% $49,413 1.63% (0.64%) 1.88% (0.89%) 45.14%
$10.88 9.10% (a) $23,319 1.57% (b) 0.08% (b) 1.57% (b) 0.08% (b) 4.31%
</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.
*** On February 14, 1998, The Bond Fund Institutional shares merged in to Select
Shares to create a single class Bond Fund.
(a) Not Annualized.
(b) Annualized.
(c) Includes $.04 per share and $.02 per share of distributions in excess of net
investment income for the Limited Term Bond Fund and Income Fund
respectively, for year ended March 31, 1998.
(d) Includes $.01 per share of distribution in excess of net investment income.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
TABLE OF CONTENTS
PERFORMANCE REPORTS AND
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 4
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 40
STATEMENTS OF OPERATIONS
PAGE 44
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 46
NOTES TO FINANCIAL STATEMENTS
PAGE 58
FINANCIAL HIGHLIGHTS
PAGE 64
SUPPLEMENTAL INFORMATION
PAGE 70
<PAGE>
SERVICE PROVIDERS
INVESTMENT ADVISER 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
PricewaterhouseCoopers, LLP
1177 Avenue of the Americas
New York, New York 10036
VINTAGE
[LOGO]
MUTUAL FUNDS
SEMI-ANNUAL
REPORT
TO
SHAREHOLDERS
SEPTEMBER 30, 1999
