<PAGE> 1
SERVICE PROVIDERS
- ---------------------------------------------
INVESTMENT ADVISOR AND
ADMINISTRATOR
Investors Management Group
2203 Grand Avenue
Des Moines, Iowa 50312-5338
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
McGladrey & Pullen, LLP
400 Locust Street
Suite 640
Des Moines, IA 50309-2372
[VINTAGE LOGO]
---------------------------------
ANNUAL
REPORT
TO
SHAREHOLDERS
MARCH 31, 1999
<PAGE> 2
TABLE OF CONTENTS
----------------------------------
Performance Reports and
Schedules of Portfolio Investments
Page 5
Statements of Assets and Liabilities
Page 42
Statements of Operations
Page 46
Statements of Changes in Net Assets
Page 48
Notes to Financial Statements
Page 63
Financial Highlights
Page 70
Report of Independent Auditors
Page 74
<PAGE> 3
MESSAGE FROM THE PRESIDENT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
Dear Shareholders:
It was a year of recordbreaking performances in the operation of the Vintage
Mutual Funds and in the financial markets with the Dow Jones Industrial Average
topping the 10,000 mark for the first time in history on March 29, following a
rather dramatic equity market correction in the third calendar quarter of 1998.
Throughout these volatile market conditions, the Vintage Funds portfolio
managers worked hard to effectively manage your invested funds.
A RECORDBREAKING OPERATING YEAR
This past fiscal year marked the first full year of combined operation for the
Vintage Mutual Funds. Investors Management Group now provides advisory,
accounting and administrative services to all Vintage Funds. During the year, we
initiated new statement formats that we hope you find to be clear and concise.
We also developed a proprietary website presence for the Vintage Funds. When you
visit us at www.vintagefunds.com, you will find a wide variety of helpful
information. Whether you are looking for informative investment commentary,
current performance information on each Vintage Fund or assistance in
determining your personal risk profile and possible asset allocation target,
preparing for retirement or even a college education, www.vintagefunds.com is
the place to learn. We want to help you to become a fully informed investor.
A RECORDBREAKING INVESTMENT PERFORMANCE YEAR
Every one of the Vintage Variable Net Asset Value Funds ended the fiscal year
with higher net assets than any previous reporting period. The explosive growth
in the equity markets, combined with solid performance in the bond markets,
propelled shareholder values upward. The Vintage Money Market Funds also enjoyed
solid performance years, with each fund growing in asset size over previous
periods. Several Vintage Funds also received recognition during the period from
national services that evaluate mutual fund performance, reinforcing the
superior performance standards that we have set internally for management of
your assets.
As of March 31, 1999, the Vintage family of mutual funds had a record total of
$1,300,539,498 invested in the ten Vintage Funds, an increase of over 16 percent
above the comparable totals for the September 30, 1998 semi-annual report. We
appreciate the confidence that each of you, as shareholders, place in our
management efforts.
- ---------------------------------------------------------
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.,
or any of its subsidiaries including Investors Management Group. Investment
products involve investment risk, including the possible loss of principal.
For more complete information on any of the Vintage Mutual Funds, including
fees, expenses and sales charges, please call 1-800-438-6375 for a free
prospectus. Please read it carefully before investing or sending money.
-1-
<PAGE> 4
MESSAGE FROM THE PRESIDENT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
We thank you for your continued confidence in us. We look forward to providing
you with excellent investment management and serving your needs now and in the
future. As always, if you would like a prospectus on any one or all of the
Vintage Funds, have any questions or require any assistance, please don't
hesitate to call us at 1-800-438-6375.
Sincerely,
[David W. Miles signature]
David W. Miles
President
-2-
<PAGE> 5
MESSAGE FROM THE INVESTMENT ADVISOR VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
Dear Shareholders:
It has been yet another year of records and challenges for investors in both
bonds and stocks. Events both domestic and international continue to set off
alternating waves of concern and optimism in the markets.
Since the depths of last year's third quarter correction, the S&P 500 has
returned 35 percent. The intense media focus on recent market records tells only
half of the story. Equally as important is the continuing excellence of the
domestic economy. Total gross domestic product has grown around 5 percent over
the last six months -- excellent by any standards. Inflation and unemployment
are each at 30-year lows -- joint levels never before seen at this stage of an
expansion.
Growth over the last few quarters has been spectacular. This in spite of the
drag caused by a flood of imports. The miracle that has been unfolding can
broadly be seen as a continuously reinforcing virtuous circle. The confluence of
constructive conditions include global secular disinflation, favorable
demographics, cheaper capital, record levels of business investment capturing
the fruits of the technological revolution, expanded free trade, balanced
federal budgets, plentiful jobs, rising real wages, excellent monetary policy
and low prices (we're back to where the circle began!).
Small wonder the markets have reacted so favorably. Alan Greenspan recently
labeled the U.S. economy "the envy of the world". We agree. The performance of
the U.S. economy in the last few quarters has only reinforced the constructive
argument. Growth was 6 percent in last year's fourth quarter with upcoming data
likely showing a similar, though slightly lower result for 1999's first quarter.
All this was accomplished with 1998 year-end inflation just over 2 percent.
Looking ahead, analysts fear the climb in oil prices under rejuvenated OPEC
quotas may jump-start inflation. Reported price increases in 1998, at a 30-year
low of 1.6 percent, were below the so-called core rate of inflation (consumer
prices without the volatile food and energy components). Now reported prices may
exceed the core rate as oil climbs from $10 to $15 per barrel. With a core rate
of 2.2 percent, reported prices could easily go to 2.5 percent.
Will a climb in oil prices end the reinforcing constructive cycle? We do not
believe it will. Unlike the mid-1970s, any oil price climb is unlikely to ripple
to other sectors for at least two reasons; the containment powers of low
capacity utilization and probable economic slowing in the months ahead.
First, as already noted, capacity has been heavily influenced by the low cost of
capital coupled with the tech revolution advantages. Business has added to
capital at twice the rate of normal expansions and at a rate exceeding overall
growth. This trend is likely to continue at least until favorable conditions
abate -- an environment we do not currently anticipate.
Second, some overall slowing can be anticipated in the months ahead. One factor
for stronger than average economic results over the past few quarters may be
seasonal. It is no secret that consumer spending has led the way in overcoming
restrictive recessionary global forces.
In near pattern predictability, spending has increased during the first quarter
each of the past 4 years, due in part to ever more rapid tax refunds (tech
revolution), growing bonuses (as compensation structures are revised throughout
the labor force) and serendipitous refi activity (resulting from attractive
mortgage rates). All of these contributors will likely abate over the next
several quarters, easing their influence on upward inflation pressures.
-3-
<PAGE> 6
MESSAGE FROM THE INVESTMENT ADVISOR VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
In closing, constructive market fundamentals seem firmly in place. Markets will
always spurt ahead of themselves at times, requiring interim catch-up
corrections. In our view, a virtuous circle of self-reinforcing conditions
supports further advances perhaps well beyond a 10,000 Dow. 10,000 is just a
number, one more than 9,999 and one less than 10,001. With the long lived and
ongoing expansion, U.S. stocks and bonds still offer positive investment
potential to the patient investor.
Sincerely,
Jay H. Evans signature
Jay H. Evans
Chief Investment Officer
Investors Management Group
-4-
<PAGE> 7
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 year ended March 31, 1999. Inflationary pressures were predominantly
under control, although increases in oil prices in the second half of the year
create 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 that were experiencing difficulties six
months ago have improved.
Looking forward, we anticipate a strong domestic economy and fairly stable
short-term interest rates as the Federal Reserve adopts an inflation "wait-and-
see" attitude, likely leaving rates unchanged for the near term.
THE GOVERNMENT ASSETS FUND
Shorter-term interest rates are fairly valued as we complete the Government
Assets Fund fiscal year relative to the balance of the yield curve. As a result,
the Fund's weighted average maturity is neutral to its performance benchmark. We
anticipate little rate intervention from the Federal Reserve during the next two
quarters, likely leading to a benchmark-neutral maturity posture for those
periods. Somewhat longer-term, we anticipate the Federal Reserve may look to
higher rates to slow an expanding economy.
THE LIQUID ASSETS FUND
Invested in a variety of government guaranteed securities with shorter-term
maturities, the Fund performed well over the course of the year ended March 31,
1999. The Fund focused on buying opportunities that presented themselves
throughout the period to maximize investor yield. At the end of the period, the
Fund's average maturity was neutral to industry averages. We anticipate that
relationship to continue throughout the next two quarters.
THE MUNICIPAL ASSETS FUND
The Municipal Assets Fund continued to diversify holdings throughout the year
ended March 31, 1999. Short-term municipals were fairly valued for the latter
part of the Fund's fiscal year. The Fund's weighted average maturity was neutral
to industry averages at year-end. The average credit quality of all holdings was
AA or better. As a result, the Fund achieved its objective of producing a solid
tax-free yield and liquidity for its investors without taking unnecessary risk.
- ---------------------------------------------------------
Although the Vintage Money Market Funds seek to maintain a stable net asset
value of $1.00, there is no assurance that they will be able to do so. The
Vintage Money Market Funds are neither insured nor guaranteed by the U.S.
Government.
-5-
<PAGE> 8
VINTAGE MUTUAL FUNDS, Inc.
GOVERNMENT ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
U.S. GOVERNMENT AGENCY (86.15%):
Federal Agricultural Mortgage Corporation:
$10,000,000 4.90%**, 4/26/1999.............. $ 9,966,667
Federal Home Loan Bank:
10,000,000 4.88%**, 4/21/1999.............. 9,973,444
Federal Home Loan Mortgage Corporation:
10,000,000 4.77%**, 4/8/1999............... 9,990,939
10,000,000 4.84%**, 5/5/1999............... 9,955,422
10,000,000 4.88%**, 5/14/1999.............. 9,943,264
10,000,000 4.85%**, 5/28/1999.............. 9,924,950
10,000,000 4.91%**, 6/11/1999.............. 9,905,728
10,000,000 4.83%**, 7/1/1999............... 9,880,183
Federal National Mortgage Association:
10,000,000 4.99%**, 4/15/1999.............. 9,981,174
10,000,000 4.81%**, 5/6/1999............... 9,954,403
10,000,000 4.86%**, 5/11/1999.............. 9,947,333
10,000,000 4.86%**, 6/4/1999............... 9,915,556
10,000,000 4.90%**, 6/14/1999.............. 9,901,950
------------
Total U.S. Government Agency.... 129,241,013
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
REPURCHASE AGREEMENTS (14.30%):
Bear Stearns:
$21,446,040 4.90%, 4/1/1999
(Purchased on 3/31/99, proceeds
at maturity $21,448,959;
Collateralized by Govt.
Agencies, 7/15/99-2/15/25,
Market Value $22,116,048)....... $ 21,446,040
------------
Total Investments in Securities
(100.45%)
(Cost -- $150,687,053).......... $150,687,053
Other Assets & Liabilities
(-0.45%)........................ (680,929)
------------
NET ASSETS (100.00%)............ $150,006,124
============
</TABLE>
- -------------------
**Effective yield at date of purchase.
See notes to financial statements.
-6-
<PAGE> 9
VINTAGE MUTUAL FUNDS, Inc.
LIQUID ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
U.S. GOVERNMENT AGENCY (17.84%):
Federal Farm Credit Bank:
$ 5,000,000 5.01%**, 4/29/1999.............. $ 4,981,178
2,000,000 4.64%, 5/3/1999................. 1,999,368
4,000,000 4.80%, 2/1/2000................. 3,998,055
Federal Home Loan Bank:
300,000 6.98%, 7/26/1999................ 301,767
5,000,000 4.90%, 12/1/1999................ 5,003,855
Federal Home Loan Mortgage Corporation:
2,000,000 5.60%, 4/21/1999................ 1,999,978
Federal National Mortgage Association:
250,000 8.55%, 8/30/1999................ 253,634
4,500,000 7.68%, 11/22/1999............... 4,577,146
1,140,000 4.78%, 11/30/1999............... 1,139,220
------------
Total U.S. Government Agency.... 24,254,201
------------
LOAN CERTIFICATES -- FMHA GUARANTEED LOAN
CERTIFICATES (15.62%):
21,231,211 5.35% to 6.25%*, 5/11/99 to
12/19/34........................ 21,231,211
------------
TRUST CERTIFICATES -- U.S. GOVT. GUARANTEED
STUDENT LOANS (26.83%):
36,500,000 5.25%***, 6/10/99 to 3/17/00.... 36,500,000
------------
MUNICIPAL BONDS (1.12%)
Wisconsin (1.12%)
1,525,000 Racine, WI UNI School Dist,
5.55%, 10/15/1999............... 1,526,129
------------
COMMERCIAL PAPER (17.47%):
Bell South Telephone:
2,000,000 4.85%**, 5/13/1999.............. 1,988,777
Eagle Funding:
1,168,000 4.91%**, 5/11/1999.............. 1,161,706
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
COMMERCIAL PAPER (CONTINUED):
Enterprise Funding:
$ 3,200,000 4.93%**, 4/9/1999............... $ 3,196,516
Ford Motor Credit:
1,998,000 4.84%**, 4/15/1999.............. 1,994,278
GMAC:
2,500,000 4.85%**, 4/20/1999.............. 2,493,653
Merrill Lynch:
2,000,000 4.86%**, 4/22/1999.............. 1,994,365
Three Rivers Funding:
2,030,000 4.89%**, 4/5/1999............... 2,028,902
Thunder Bay Funding:
2,000,000 4.91%**, 4/15/1999.............. 1,996,204
Triple A1 Funding:
1,917,000 4.89%**, 4/5/1999............... 1,915,965
3,000,000 4.91%**, 4/9/1999............... 2,996,747
Wood Street Funding:
2,004,000 4.91%**, 4/13/1999.............. 2,000,733
------------
Total Commercial Paper.......... 23,767,846
------------
CORPORATES (11.05%):
American General Financial:
2,850,000 8.00%, 2/15/2000................ 2,922,210
American Home Products:
2,500,000 7.70%, 2/15/2000................ 2,557,646
Merrill Lynch:
2,000,000 8.25%, 11/15/1999............... 2,039,430
Tele-Communications Inc:
1,000,000 7.25%, 6/15/1999................ 1,003,713
3,000,000 7.38%, 2/15/2000................ 3,056,221
</TABLE>
- -------------------
*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.
-7-
<PAGE> 10
VINTAGE MUTUAL FUNDS, Inc.
LIQUID ASSETS FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
CORPORATES (CONTINUED):
U.S. Leasing International:
$ 3,000,000 7.54%, 12/22/1999............... $ 3,053,211
Walt Disney Company:
400,000 5.60%, 1/13/2000................ 401,029
------------
Total Corporates................ 15,033,460
------------
REPURCHASE AGREEMENTS (10.74%):
Bear Stearns:
14,613,372 4.96%, 4/1/1999, (Purchased on
3/31/99, proceeds at maturity
$14,615,385; Collateralized by
$15,590,000 Government Agencies,
market value $15,574,442)....... 14,613,372
------------
Total Investments in Securities
(100.67%)
(Cost -- $136,926,219).......... $136,926,219
Other Assets & Liabilities
(-0.67%)........................ (907,296)
------------
NET ASSETS (100.00%)............ $136,018,923
============
</TABLE>
See notes to financial statements.
-8-
<PAGE> 11
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
INDUSTRIAL DEVELOPMENT BONDS (2.97%):
Iowa (2.97%)
$ 10,929 Iowa HFA (Gayman Project),
4.17%**, 08/15/1999............... $ 10,929
180,003 Iowa HFA (Starr-Terry Project),
4.67%**, 05/15/2005............... 180,003
888,673 Sioux City, IA (Handy
Partnership),
4.17%**, 09/15/2004............... 888,673
264,497 Vinton, IA (Twin City Concrete),
4.63%**, 06/15/2002............... 264,497
-----------
Total Industrial Development
Bonds............................. 1,344,102
------------
VARIABLE RATE DEMAND OBLIGATIONS (53.70%):
Alabama (1.11%)
500,000 North Alabama PCR DTN,
3.10%*, 12/1/2000................. 500,000
------------
Arizona (6.40%)
1,500,000 Apache Co., AZ IDA 7-Day,
3.05%**, 12/15/2018............... 1,500,000
1,400,000 Phoenix, AZ IDR 7-Day,
3.00%**, 10/15/2006............... 1,400,000
-----------
2,900,000
------------
Delaware (3.76%)
1,700,000 Delaware St Econ Dev 7-Day,
3.20%**, 10/01/2028............... 1,700,000
------------
Florida (5.30%)
1,400,000 Alachua Co., FL Health Fac 7-Day,
3.05%**, 12/1/2026................ 1,400,000
1,000,000 St. Lucie Co., FL PCR DTN,
3.10%*, 01/01/2026................ 1,000,000
-----------
2,400,000
------------
Illinois (3.76%)
300,000 Chicago, IL G.O. 7-Day,
3.00%**, 1/1/2012................. 300,000
200,000 Illinois Educational Fac Auth
7-Day,
3.05%**, 5/1/2019................. 200,000
300,000 Illinois Health Fac Auth Rev
7-Day,
3.00%**, 4/1/2032................. 300,000
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
VARIABLE RATE DEMAND OBLIGATIONS (CONTINUED):
$ 500,000 Lake Co., IL Solid Waste 7-Day,
3.15%**, 4/1/2021................. $ 500,000
400,000 McCook, IL St. Andrew Rev 7-Day,
3.10%**, 12/1/2021................ 400,000
-----------
1,700,000
------------
Iowa (0.88%)
400,000 Iowa Finance Auth Rev 7-Day,
3.08%**, 8/15/2024................ 400,000
------------
Kentucky (3.09%)
1,400,000 Kentucky Dev Finance 7-Day,
3.10%**, 12/1/2015................ 1,400,000
------------
Michigan (3.76%)
1,200,000 Michigan St HFA (St. Mary's)
7-Day,
3.00%**, 7/1/2017................. 1,200,000
500,000 Michigan St HFA (Mt. Clemens)
7-Day, 2.95%**, 8/15/2015......... 500,000
-----------
1,700,000
------------
Minnesota (0.88%)
400,000 Duluth, MN Tax Rev 7-Day,
3.00%**, 9/1/2010................. 400,000
------------
Missouri (3.31%)
1,500,000 Missouri Higher Ed Loan Fac 7-Day,
3.10%**, 6/1/2017................. 1,500,000
------------
New York (4.42%)
200,000 New York St. Energy R&D Auth DTN,
3.20%*, 12/1/2025................. 200,000
1,100,000 New York State Dorm Auth 7-Day,
3.05%**, 2/15/2007................ 1,100,000
300,000 New York, NY G.O. Ser A4 DTN,
3.10%*, 8/1/2022.................. 300,000
400,000 New York, NY G.O. Ser B4 DTN,
3.15%*, 8/15/2021................. 400,000
-----------
2,000,000
------------
</TABLE>
- -------------------
*Variable rate, put option subject to next business day settlement.
**Variable rate, put option subject to no longer than 7-day settlement.
See notes to financial statements.
-9-
<PAGE> 12
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
VARIABLE RATE DEMAND OBLIGATIONS (CONTINUED):
North Carolina (1.99%)
$ 900,000 North Carolina Medical Care 7-Day,
3.10%**, 10/1/2023................ $ 900,000
------------
Pennsylvania (1.11%)
500,000 Bucks Co., PA IDA 7-Day,
3.05%**, 7/1/2015................. 500,000
------------
Tennessee (1.77%)
500,000 Metro Govt Nashville, TN 7-Day,
3.05%**, 6/1/2015................. 500,000
300,000 Sullivan Co., TN IDR (Mead) DTN,
3.05%*, 10/1/2016................. 300,000
-----------
800,000
------------
Texas (7.96%)
400,000 Grapevine, TX IDR Ser A1 DTN,
3.10%*, 12/1/2024................. 400,000
100,000 Grapevine, TX IDR Ser B3 DTN,
3.10%*, 12/1/2024................. 100,000
500,000 Grapevine, TX IDR Ser B4 DTN,
3.10%*, 12/1/2024................. 500,000
900,000 Harris Co., TX Ser 88A 7-Day,
3.20%**, 6/1/2005................. 900,000
1,000,000 Hunt Co., TX Industrial Dev 7-Day,
3.05%**, 10/1/2002................ 1,000,000
100,000 Lone Star, TX Airport Ser A3 DTN,
3.10%*, 12/1/2014................. 100,000
100,000 Lone Star, TX Airport Ser A5 DTN,
3.10%*, 12/1/2014................. 100,000
500,000 Lone Star, TX Airport Ser B5 DTN,
3.10%*, 12/1/2014................. 500,000
-----------
3,600,000
------------
Utah (1.99%)
900,000 Salt Lake City, UT Rev 7-Day,
3.05%**, 1/1/2020................. 900,000
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
VARIABLE RATE DEMAND OBLIGATIONS (CONTINUED):
Washington (2.21%)
$ 400,000 Port of Vancouver, WA, Series 84A
7-Day, 3.00%**, 12/1/2009......... $ 400,000
600,000 Washington State Health Fac DTN,
3.10%*, 2/15/2027................. 600,000
-----------
1,000,000
------------
Total Variable Rate Demand
Obligations....................... 24,300,000
------------
MUNICIPAL BONDS (42.18%):
Arizona (0.89%)
200,000 Maricopa Co., AZ School Dist,
6.50%, 7/1/1999................... 201,384
100,000 Phoenix, AZ Water System Rev,
4.40%, 7/1/1999................... 100,194
100,000 Tempe, AZ,
8.00%, 7/1/1999................... 101,073
-----------
402,651
------------
Connecticut (0.67%)
100,000 Connecticut State Health &
Education,
3.20%, 7/1/1999................... 100,000
195,000 Connecticut State Series C,
5.70%, 11/15/1999................. 197,951
-----------
297,951
------------
District of Columbia (1.13%)
500,000 District of Columbia Series A,
7.50%, 6/1/1999................... 512,855
------------
Florida (2.36%)
250,000 Florida State Board of Education,
4.40%, 6/1/1999................... 250,471
100,000 Florida State Board of Education,
7.00%, 6/1/1999................... 100,618
</TABLE>
- -------------------
*Variable rate, put option subject to next business day settlement.
**Variable rate, put option subject to no longer than 7-day settlement.
See notes to financial statements.
-10-
<PAGE> 13
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
$ 200,000 Hillsborough Co., FL Util Rev.,
3.20%***, 8/1/1999................ $ 197,870
500,000 Orlando, FL Utilities Comm,
7.00%, 10/1/1999.................. 519,156
-----------
1,068,115
------------
Georgia (0.89%)
400,000 Georgia State, Gas Series B,
8.00%, 7/1/1999................... 404,240
------------
Illinois (5.92%)
300,000 Bartlett, IL Park Dist,
4.20%, 12/15/1999................. 301,921
345,000 Cook Co., IL HSD #203,
4.375%, 12/1/1999................. 347,525
200,000 Du Page Co., IL Forest Preserve,
4.00%, 10/1/1999.................. 200,586
200,000 Illinois State Sales Tax Rev,
3.20%***, 6/15/1999............... 198,679
100,000 Illinois State Sales Tax Rev,
3.75%***, 6/15/1999............... 99,245
100,000 Illinois State Sales Tax Rev,
6.20%, 6/15/1999.................. 100,479
225,000 Itasca, IL G.O.,
4.125%, 12/15/1999................ 226,312
595,000 Central Lake County, IL Water
G.O.,
3.30%, 2/1/2000................... 595,000
605,000 Lake Co., IL CSD,
4.125%, 2/1/2000.................. 608,941
-----------
2,678,688
------------
Indiana (1.10%)
150,000 Allen Co., IN Jail Bldg Corp,
3.70%, 10/1/1999.................. 150,073
245,000 Kokomo Center Twp School, IN,
3.60%, 7/15/1999.................. 245,241
100,000 Purdue University, IN,
4.65%, 7/1/1999................... 100,230
-----------
495,544
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
Iowa (1.00%)
$ 100,000 Boone, IA Water Rev,
4.60%, 6/1/1999................... $ 100,238
150,000 Burlington, IA Sewer Rev,
3.80%, 6/1/1999................... 150,156
200,000 Mason City, IA CSD,
4.20%, 6/1/1999................... 200,343
-----------
450,737
------------
Kentucky (5.02%)
470,000 Jefferson Co., KY Refunding Ser A,
4.00%, 12/1/1999.................. 472,229
750,000 Lexington-Fayette Urban Co., KY,
7.00%, 12/1/1999.................. 790,630
860,000 Louisville, KY Refunding Series A,
3.125%, 12/1/1999................. 859,282
150,000 Northern Kentucky University,
3.90%, 12/1/1999.................. 150,684
-----------
2,272,825
------------
Maine (0.56%)
250,000 Maine State Highway,
4.90%, 9/1/99..................... 251,684
------------
Massachusetts (0.30%)
135,000 Southborough, MA,
6.50%, 11/15/1999................. 137,640
------------
Michigan (2.52%)
135,000 Chippewa Co., MI Building Auth,
4.25%, 11/1/1999.................. 135,734
300,000 Kent Hospital Finance Auth, MI,
7.00%, 7/1/1999................... 308,274
150,000 Michigan State Trunk Line,
6.00%, 8/15/1999.................. 151,172
175,000 No. Huron, MI Public Schools,
4.50%, 5/1/1999................... 175,081
370,000 Ottawa Co., MI, Water Supply,
3.70%, 8/1/1999................... 369,876
-----------
1,140,137
------------
</TABLE>
- -------------------
***Effective yield at date of purchase.
See notes to financial statements.
-11-
<PAGE> 14
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
Minnesota (2.56%)
$ 250,000 Minneapolis, MN Health Fac,
4.00%, 5/1/1999................... $ 250,000
450,000 Minneapolis, MN,
5.50%, 12/1/1999.................. 456,299
250,000 Minnesota Agriculture & Econ Dev,
3.40%, 12/1/1999.................. 250,000
100,000 Richfield, MN ISD #280,
3.30%, 1/25/2000.................. 99,839
100,000 So. Washington Co., MN ISD #833,
6.50%, 6/1/1999................... 100,404
-----------
1,156,542
------------
Missouri (1.11%)
250,000 O'Fallon, MO Public Facility Auth,
3.60%, 9/1/1999................... 250,000
250,000 O'Fallon, MO Public Facility Auth,
3.60%, 9/1/1999................... 250,000
-----------
500,000
------------
Nevada (0.67%)
150,000 Clark Co., NV Impr & Ref,
5.80%, 10/1/1999.................. 151,851
150,000 Nevada State Colorado River Comm,
6.00%, 10/1/1999.................. 152,026
-----------
303,877
------------
New Hampshire (1.14%)
500,000 New Hampshire Mun Bond Bank,
6.80%, 7/15/1999.................. 515,091
------------
New Jersey (0.67%)
300,000 Secaucus, NJ,
4.85%, 10/15/1999................. 302,505
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
New York (0.85%)
$ 100,000 New York State Environmental Fac,
5.60%, 6/15/1999.................. $ 100,493
185,000 New York, NY Capital Appreciation,
3.33%***, 8/1/1999................ 182,970
100,000 New York, NY Mun Water Fin Auth,
7.20%, 6/15/1999.................. 100,658
-----------
384,121
------------
Ohio (0.22%)
100,000 Cleveland Heights, OH Pension
Fund,
3.05%, 12/1/1999.................. 99,849
------------
Oklahoma (0.44%)
200,000 University of Oklahoma,
7.30%, 5/1/1999................... 200,710
------------
Oregon (0.44%)
200,000 Multnomah Co., OR SD #1J,
4.35%, 6/1/1999................... 200,328
------------
Pennsylvania (0.22%)
100,000 Pennsylvania State 2nd Series,
5.30%, 7/1/1999................... 100,388
------------
South Carolina (0.66%)
115,000 Grand Strand Water & Sewer, SC,
7.00%, 6/1/1999................... 115,639
185,000 Greenville, SC Parking Fac,
3.85%, 6/1/1999................... 185,209
-----------
300,848
------------
Tennessee (0.23%)
105,000 Cumberland Co., TN,
4.75%, 6/1/1999................... 105,276
------------
Texas (1.91%)
300,000 Austin, TX Refunding Ser B,
7.00%, 9/1/1999................... 304,749
115,000 Caldwell, TX Waterworks System,
3.35%, 10/1/1999.................. 115,054
</TABLE>
- -------------------
***Effective yield at date of purchase.
See notes to financial statements.
-12-
<PAGE> 15
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL ASSETS FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
$ 140,000 Laredo, TX Refunding,
4.00%, 8/15/1999.................. $ 140,333
100,000 North Texas Mun Water Dist,
6.00%, 9/1/1999................... 101,061
200,000 Yselta, TX ISD,
7.00%, 8/15/1999.................. 202,402
-----------
863,599
------------
Virginia (0.34%)
150,000 SE Public Service Auth, VA,
7.00%, 7/1/1999................... 154,317
------------
Washington (3.46%)
150,000 Seattle, WA Drain Util Rev,
7.00%, 12/1/1999.................. 156,587
100,000 Washington State Public Power
Dist,
7.20%, 7/1/1999................... 100,852
500,000 Washington State Public Power
Dist,
7.25%, 7/1/1999................... 514,283
325,000 Washington State Public Power
Dist,
7.25%, 7/1/1999................... 334,334
250,000 Washington State Public Power
Dist,
7.50%, 7/1/1999................... 257,262
200,000 Washington State Refunding,
6.00%, 9/1/1999................... 201,870
-----------
1,565,188
------------
West Virginia (0.59%)
130,000 West Virginia State Bd of Regents,
7.25%, 4/1/1999................... 130,000
135,000 West Virginia State Parkways,
7.125%, 7/1/1999.................. 138,836
-----------
268,836
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
Wisconsin (3.20%)
$ 355,000 Darlington, WI CSD,
4.625%, 3/1/2000.................. $ 359,035
280,000 Madison, WI Metro School Dist,
3.40%, 12/1/1999.................. 280,000
200,000 Menomonee Falls, WI,
4.20%, 9/1/1999................... 200,447
200,000 Milwaukee Co., WI Series A,
5.10%, 9/1/1999................... 201,386
400,000 Muskego, WI Promissory Notes,
5.40%, 3/1/2000................... 407,484
-----------
1,448,352
------------
Wyoming (1.11%)
500,000 Teton Co., WY School Dist #1,
3.85%, 12/1/1999.................. 501,935
-----------
Total Municipal Bonds............. 19,084,829
------------
Total Investments in Securities
(98.85%)
(Cost -- $44,728,931)............. $44,728,931
Other Assets & Liabilities
(1.15%)........................... 519,261
------------
NET ASSETS (100.00%).............. $45,248,192
===========
</TABLE>
See notes to financial statements.
-13-
<PAGE> 16
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE VINTAGE FIXED INCOME FUNDS
The domestic economy continued to post impressive performance numbers through
the first quarter of 1999. Despite a rise in oil prices brought about under
rejuvenated OPEC quotas, compelling evidence of emerging inflation was hard to
find. The containment powers of low capacity utilization and a likely economic
slowing in the months ahead should act to dampen any inflationary impetus.
Capacity has been heavily influenced by the low cost of capital coupled with the
technology revolution advantages. Spending increases prompted in the past by
refinance activity cashflows and more readily available tax refunds should
abate, slowing spending increases.
As we proceed through 1999, the potential effects of Asia's problems that were
so dreaded six months ago have greatly abated. As our economy continues to
perform well, but not dramatically enough to prompt action by the Federal
Reserve, rates are likely to remain in trading ranges.
The year ahead should be a positive one, although there is always reason for
caution. Wage pressures continue to increase -- even as the bond markets have
priced in an optimistic inflation outlook. Should we see more inflationary
pressure than investors currently anticipate, the reaction will be quick. So,
while we are optimistic about the market's prospects in the months ahead, we do
believe that they may be somewhat more volatile.
-14-
<PAGE> 17
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE LIMITED TERM BOND FUND
With the Federal Reserve decreasing short-term rates three times for a total of
.75 percent and virtually non-existent inflation throughout much of the year,
interest rates moved generally lower during the year ended March 31, 1999. The
actions of the Federal Reserve were more in reaction to international concerns
over significant struggling economies elsewhere than to concerns over the
domestic economy. This presented a challenging asset management investment
environment. The Fund posted a total return after operating expenses of 5.01
percent for the twelve months ended 3/31/99*.
Performance slightly lagged industry benchmarks for the period. The Fund's
average maturity was shortened during the year to comply with the Fund's
maturity guidelines of 1-4 years, ending the period with an average maturity of
3.2 years. Assets were also reallocated, with the allocation to Treasuries
reduced over the previous period in favor of various, well-structured mortgage
securities and corporate bonds. As a result of these changes, we believe the
Fund is well positioned for the future.
As of March 31, 1999, approximately 40 percent of the Fund's assets were
invested in Treasury and agency securities, 23 percent in mortgage-related
securities, 34 percent in corporate bonds, and 2 percent in taxable municipals
with the remaining 1 percent held in cash and cash equivalents. The average
credit quality of these holdings was AA1**.
<TABLE>
<CAPTION>
VINTAGE LIMITED TERM BOND LEHMAN BROTHERS MERRILL LYNCH 1-5 YR. U.S.
FUND INTERMEDIATE GOVT/CORP. INDEX
------------------------- GOVERNMENT/CORP. BOND --------------------------
INDEX
---------------------
<S> <C> <C> <C>
6/15/95 10000.00 10000.00 10000.00
9/30/95 10159.00 10292.00 10161.00
3/31/96 10340.00 10538.00 10454.00
9/30/96 10460.00 10794.00 10633.00
3/31/97 10663.00 11056.00 10899.00
9/30/97 11200.00 11845.00 11424.00
3/31/98 11570.00 12383.00 12271.00
9/30/98 12063.00 13182.00 12941.00
3/31/99 12150.00 13160.00 13066.00
</TABLE>
- -------------------
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed,
may be worth more or less than their original cost.
** The composition of the Fund's portfolio is subject to change.
The performance of the Vintage Limited Term Fund is measured against the Lehman
Brothers Intermediate Government/Corporate Bond Index and the Merrill Lynch 1-5
yr. U.S. Government/Corp. Index. Both are unmanaged indicies generally
representative of the performance of government and corporate bonds and the
Lehman Index having maturities of 1-10 years and the Merrill Lynch having
maturities of 1-5 years. The indicies do not reflect the deduction of expenses
associated with a mutual fund, such as investment management fees. The Fund's
performance reflects the deduction of fees for these value-added services.
-15-
<PAGE> 18
VINTAGE MUTUAL FUNDS, Inc.
LIMITED TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----------
<C> <S> <C>
U.S. TREASURY NOTES (25.05%):
$1,000,000 6.25%, 8/31/2002.................. $ 1,033,340
1,000,000 6.375%, 1/15/2000................. 1,011,270
1,000,000 6.375%, 8/15/2002................. 1,036,810
3,000,000 6.50%, 5/31/2001.................. 3,089,730
2,500,000 6.625%, 4/30/2002................. 2,605,825
1,000,000 6.25%, 10/31/2001................. 1,028,150
2,000,000 6.75%, 4/30/2000.................. 2,037,720
2,000,000 7.25%, 8/15/2004.................. 2,183,800
-----------
Total U.S. Treasury Notes......... 14,026,645
------------
U.S. GOVERNMENT AGENCIES (15.15%):
1,000,000 Federal National Mortgage Assoc.
Step Up, 8.625%*, 11/10/2004...... 969,020
1,000,000 Federal National Mortgage Assoc.,
5.125%, 11/30/2000................ 997,030
1,000,000 Federal Farm Credit Bank,
6.15%, 3/23/2005.................. 996,030
1,000,000 Federal Home Loan Bank,
5.125%, 9/15/2003................. 984,550
1,000,000 Federal Home Loan Bank,
5.50%, 1/21/2003.................. 999,910
1,000,000 Federal National Mortgage Assoc.,
6.25%, 12/13/2002................. 1,004,570
1,000,000 Federal National Mortgage Assoc.,
7.28%, 5/23/2007.................. 1,044,790
500,000 Federal National Mortgage Assoc.
MTN, 6.98%, 6/16/2004............. 506,555
1,000,000 Federal National Mortgage Assoc.
Strip P/O**, 7.91%, 8/10/2004..... 981,560
-----------
Total U.S. Government Agencies.... 8,484,015
------------
MORTGAGE RELATED SECURITIES (22.49%):
Collateralized Mortgage Obligations (14.49%)
751,120 Federal National Mortgage Assoc.
1997-72 VA, 7.00%, 10/18/2002..... 762,575
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----------
<C> <S> <C>
MORTGAGE RELATED SECURITIES (CONTINUED):
$2,000,000 Federal Home Loan Mortgage Corp.
Series 1465 Class E, 6.50%,
9/15/2006......................... $ 2,023,380
2,000,000 Federal Home Loan Mortgage Corp.
Series 1515 Class E, 6.50%,
3/15/2007......................... 2,030,040
2,000,000 Federal Home Loan Bank Series
3Y-03 Class A, 6.063%,
5/27/2003......................... 2,002,260
1,000,000 Federal Home Loan Mortgage Corp.
T-11 Class A3, 6.50%, 3/25/2011... 1,009,240
287,103 Federal National Mortgage Assoc.
Series G93-8 Class PG,
6.50%, 7/25/2018.................. 286,611
-----------
8,114,106
------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed
Pools (1.62%)
890,371 #E61274, 7.00%, 8/1/2009.......... 909,024
------------
Federal National Mortgage Association Mortgage-
Backed Pools (1.68%)
946,724 1993-14, 6.00%, 2/25/2008......... 941,261
------------
Asset Backed Securities (4.70%)
1,000,000 Fingerhut 98-1A, 6.07%,
2/15/2005......................... 1,011,460
1,000,000 Ford 98-C A4, 5.81%, 3/15/2002.... 1,006,290
604,282 Nations Credit Grantor Trust 97-1,
6.75%, 8/15/2013.................. 616,253
-----------
2,634,003
------------
Total Mortgage-Related
Securities........................ 12,598,394
------------
U.S. TAXABLE MUNICIPAL BONDS (1.82%):
1,000,000 State of Texas Veterans Housing
Fund II-Series B-1, 6.73%,
6/1/2021.......................... 1,021,390
------------
</TABLE>
- -------------------
*Effective yield at date of purchase.
**Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to
maturity of 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.
See notes to financial statements.
-16-
<PAGE> 19
VINTAGE MUTUAL FUNDS, Inc.
LIMITED TERM BOND FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----------
<C> <S> <C>
CORPORATE BONDS (34.04%):
Banking and Financial Services (12.63%)
$1,000,000 Associates, 5.85%, 1/15/2001...... $ 1,006,250
1,000,000 BankAmerica Corp, 5.75%,
3/1/2004.......................... 997,500
1,000,000 Bankers Trust, 5.85%, 5/11/2000... 1,001,250
1,000,000 Bear Stearns Co, 7.34%,
12/19/2006........................ 1,007,500
1,000,000 Beneficial Corp, 6.27%,
12/6/2001......................... 1,010,000
1,000,000 Merrill Lynch, 6.875%, 3/1/2003... 1,031,250
1,000,000 Salomon Smith Barney,
6.625%, 11/15/2003................ 1,022,500
-----------
7,076,250
------------
Consumer Goods and Services (7.74%)
1,000,000 Dillard's Dept Store,
9.50%, 10/15/2001................. 1,076,250
1,000,000 Loyola University,
6.03%, 6/15/2000.................. 1,005,760
1,255,000 Reebok International Ltd,
6.75%, 5/15/2000.................. 1,259,706
1,000,000 Reynolds & Reynolds,
6.12%, 3/2/2001................... 992,500
-----------
4,334,216
------------
Industrial Goods and Services (6.40%)
1,000,000 Boeing Company,
6.35%, 6/15/2003.................. 1,015,000
1,000,000 Comdisco,
6.13%, 8/1/2001................... 1,008,750
500,000 Cummmins Engine,
6.75%, 2/15/2027.................. 498,750
1,000,000 Xerox Corporation,
8.125%, 4/15/2002................. 1,062,500
-----------
3,585,000
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----------
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Railroads (1.89%)
$1,000,000 Norfolk Southern Railway Equipment
Trust, 7.75%, 8/15/2002........... $ 1,057,500
------------
Telecommunications (5.38%)
1,000,000 AT&T Corp,
5.625%, 3/15/2004................. 995,000
1,000,000 Bell South,
6.00%, 6/15/2012.................. 1,007,500
1,000,000 Worldcom Inc,
6.125%, 8/15/2001................. 1,008,750
-----------
3,011,250
------------
Total Corporate Bonds............. 19,064,216
------------
MUTUAL FUNDS (1.16%):
649,210 Government Assets Fund T Shares,
4.76%***.......................... 649,210
------------
Total Investments in Securities
(99.71%)
(Cost $55,609,610)(a)............. $55,843,870
Other Assets & Liabilities
(0.29%)........................... 161,345
------------
NET ASSETS (100.00%).............. $56,005,215
===========
</TABLE>
- -------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation.................... $ 523,842
Unrealized Depreciation.................... $(289,582)
---------
Net Unrealized Appreciation................ $ 234,260
=========
</TABLE>
*** Rate shown is as of March 31, 1999.
See notes of financial statements.
-17-
<PAGE> 20
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE BOND FUND
The flight to quality in the Treasury market experienced in the last half of
1998 subsided substantially in the first quarter of 1999. As a result, corporate
bonds and mortgage-backed securities outperformed Treasuries for that period.
The Fund continues to overweight corporate bonds, since yield spreads are still
wider than historical relative-spread relationships. We are keeping a close eye
on inflation. Current reported numbers are mild, but there are signs around the
world that commodity prices may be bottoming.
The portfolio produced a total return after operating expenses of 5.95 percent*
for the year ended March 31, 1999, slightly under its industry benchmark for the
same period.
Looking ahead, we expect to capitalize on opportunities that arise and respond
to changes in the environment. For instance, should interest rates rise in the
months ahead, we would look to reduce our holdings in mortgage-related
securities in favor of Treasuries and to lengthen maturities. Beyond such
adjustments, however, no major changes are anticipated.
As of March 31, 1999, approximately 38 percent of the Fund's assets were
invested in mortgage-related securities, 36 percent in corporate bonds, 8
percent in taxable municipals, 18 percent in Treasury and agency securities, and
less than 1 percent in cash and cash equivalents. The average maturity of the
portfolio's holdings was 6.64 years; the average credit quality was AA1**.
<TABLE>
<CAPTION>
VINTAGE BOND FUND LEHMAN BROTHERS AGGREGATE INDEX
----------------- -------------------------------
<S> <C> <C>
7/7/95 10000 10000
9/30/95 10099 10068
3/31/96 10314 10309
9/30/96 10505 10559
3/31/97 10763 10816
9/30/97 11540 11588
3/31/98 12047 12113
9/30/98 12686 12920
3/31/99 12764 12898
</TABLE>
- -------------------
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed,
may be worth more or less than their original cost.
** The composition of the Fund's portfolio is subject to change.
The performance of the Vintage Bond Fund is compared to the Lehman Brothers
Aggregate Index, which represents the performance of overall bond market. The
index is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The Fund's
performance reflects the deduction of fees for these value-added services.
-18-
<PAGE> 21
VINTAGE MUTUAL FUNDS, Inc.
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----
<C> <S> <C>
U.S. TREASURY BONDS (6.78%):
$ 275,000 7.25%, 5/15/2016.................. $ 315,441
1,000,000 7.50%, 11/15/2016................. 1,174,330
-----------
Total U.S. Treasury Bonds......... 1,489,771
------------
U.S. TREASURY NOTES (1.92%):
250,000 6.50%, 5/15/2005.................. 264,930
150,000 6.625%, 3/31/2002................. 156,198
-----------
Total U.S. Treasury Notes......... 421,128
------------
U.S. GOVERNMENT AGENCIES (8.78%):
500,000 Federal Home Loan Bank,
6.50%, 11/29/2005................. 523,270
300,000 Federal Home Loan Mortgage Corp.
Disc. Note, 5.01%*, 4/9/1999...... 299,673
1,000,000 Federal National Mortgage Assoc.,
6.70%, 8/10/2001.................. 1,004,960
100,000 Federal National Mortgage Assoc.,
8.625%, 11/10/2004................ 101,937
-----------
Total U.S. Government Agencies.... 1,929,840
------------
MORTGAGE-RELATED SECURITIES (38.13%)
Collateralized Mortgage Obligations (10.63%)
246,290 Block 1997-1 A2,
6.85%, 10/25/2011................. 251,701
9,025 Federal Home Loan Mortgage Corp.
Series L Class 5, 7.90%,
5/1/2001.......................... 9,338
59,588 Federal Home Loan Mortgage Corp.
1504 B, 7.00%, 12/15/2022......... 59,772
158,270 FHR 1652 K, 7.00%, 6/15/2023...... 158,634
144,386 Federal Home Loan Mortgage Corp.
1395, 6.00%, 11/15/2021........... 144,268
19,653 Federal National Mortgage Assoc.
1991-174 K, 7.00%, 4/25/2006...... 19,724
8,734 Federal National Mortgage Assoc.
1992-212 Class C, 5.50%,
11/25/1999........................ 8,710
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----
<C> <S> <C>
MORTGAGE-RELATED SECURITIES (CONTINUED):
$ 31,561 Federal National Mortgage Assoc.
1992-60 Class C, 7.50%,
4/25/1999......................... $ 31,452
500,000 FNR 1997-48 PB,
6.75%, 8/18/2019.................. 500,310
140,000 GE Capital Mtg 1997-HE3 A3,
6.52%, 8/25/2013.................. 140,662
27,895 General Electric Cap Mtge Serv
1994-1 A1, 5.70%, 1/25/2024....... 27,826
175,584 Green Tree 1996-10 A3,
6.16%, 11/15/2028................. 177,284
125,000 Green Treee 1996-2 A2,
6.45%, 4/15/2027.................. 126,284
236,186 Salomon Mortgage Sec. VII 1995-1
PO, 10.54%**, 2/25/2025........... 170,350
500,000 Southern Pacific Secured Assets
Corp 1998-1 A6, 7.08%,
3/25/2028......................... 510,445
-----------
2,336,760
------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed
Pools (2.28%)
57,200 #C00126, 8.50%, 6/1/2022.......... 59,828
223,641 #E00548, 6.50%, 5/1/2013.......... 225,853
214,099 #00538, 6.50%, 3/1/2013........... 216,208
-----------
501,889
------------
Federal National Mortgage Association
Mortgage-Backed Pools (15.34%)
353,435 #251286, 7.00%, 11/1/2027......... 358,079
184,502 #313873, 7.00%, 12/1/2027......... 186,915
425,572 #408827, 6.50%, 2/1/2028.......... 423,534
480,668 #251813, 6.50%, 7/1/2028.......... 478,111
998,852 #448917, 6.50%, 11/1/2028......... 993,578
919,938 #430093, 7.0%, 6/1/2028........... 932,192
-----------
3,372,409
------------
</TABLE>
- -------------------
* Effective yield at date of purchase.
** Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to
maturity of 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.
See notes to financial statements.
-19-
<PAGE> 22
VINTAGE MUTUAL FUNDS, Inc.
BOND FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----
<C> <S> <C>
MORTGAGE-RELATED SECURITIES (CONTINUED):
Government National Mortgage Assoc
Mortgage-Backed Pools (9.88%)
$ 22,352 #315929, 9.00%, 6/15/2022......... $ 23,732
30,517 #341681, 8.50%, 1/15/2023......... 32,094
35,829 #354189, 7.50%, 5/15/2023......... 36,835
67,643 #359600, 7.50%, 7/15/2023......... 69,527
178,555 #376218, 7.50%, 8/15/2025......... 183,628
108,168 #385300, 8.00%, 10/15/2024........ 112,384
94,905 #410049, 8.00%, 7/15/2025......... 98,579
381,339 #412334, 7.00%, 10/15/2027........ 387,059
161,273 #412645, 8.00%, 8/15/2026......... 167,618
155,518 #440404, 7.50%, 4/15/2027......... 159,903
213,937 #454375, 7.00%, 3/15/2028......... 217,099
281,724 #780213, 7.50%, 8/15/2025......... 289,807
383,509 #780619, 7.00%, 8/15/2012......... 393,691
-----------
2,171,956
------------
Total Mortgage-Related
Securities........................ 8,383,014
------------
U.S. TAXABLE MUNICIPAL BONDS (7.77%):
230,000 Berry Creek Met Dist, CO,
7.05%, 12/1/2003.................. 237,818
125,000 Fulton, MO Import Taxable Sinking
Fund, 7.60%, 7/1/2011............. 136,063
45,000 Manteca, CA Financial Authority,
6.625%, 9/15/1999................. 44,892
287,890 Mille Lacs Band Of Ojibwe Indians
(Grand Casino) Rev. Notes, 8.00%,
6/1/2004.......................... 289,252
155,000 New Orleans, LA Hsg. Dev.,
8.00%, 12/1/2003.................. 156,860
86,681 Oregon Department of
Transportation,
9.00%, 6/15/2000.................. 88,066
175,000 Portland, OR MFH,
7.625%, 12/1/2001................. 173,810
90,000 Prairie Du Chien, WI,
Redevelopment Auth., 7.60%,
4/1/2005.......................... 95,312
100,000 Prairie Du Chien, WI,
Redevelopment Auth., 7.625%,
4/1/2006.......................... 106,536
150,000 St. Paul, MN Port Authority,
6.65%, 9/1/1999................... 150,733
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----
<C> <S> <C>
U.S. TAXABLE MUNICIPAL BONDS (CONTINUED):
$ 50,000 Texas St. G.O. Taxable,
8.70%, 12/1/2009.................. $ 55,582
165,000 Washington St. HSA,
7.65%, 1/1/2004................... 173,654
-----------
Total U.S. Taxable Municipal
Bonds............................. 1,708,578
------------
CORPORATE BONDS (35.46%):
Finance (2.74%)
250,000 GMAC, 8.875%, 6/1/2010............ 296,250
130,000 Hubco, Inc., 7.75%, 1/15/2004..... 136,825
165,000 Lehman Brothers MTN,
8.05%, 1/15/2019.................. 168,506
-----------
601,581
------------
International (2.78%)
375,000 Naples, City of, Italy,
7.52%, 7/15/2006.................. 393,281
185,000 Nova Scotia,
8.25%, 11/15/2019................. 217,837
-----------
611,118
------------
Industrial (26.15%)
140,000 Dayton Hudson,
10.00%, 12/1/2000................. 149,275
415,000 Fletcher Challenge,
6.75%, 3/24/2005.................. 392,694
500,000 Geon Company, 6.875%,
12/15/2005........................ 504,375
250,000 Georgia Pacific, 8.125%,
6/15/2023......................... 245,938
400,000 Healthsouth Corp, 3.25%,
4/1/2003.......................... 326,000
420,000 HRPT Properties,
6.875%, 8/26/2002................. 418,950
750,000 Ikon Office, 6.75%, 11/1/2004..... 716,250
250,000 K-Mart Corp, 7.17%, 7/24/2000..... 253,438
500,000 Millipore Corp, 7.20%, 4/1/2002... 499,375
10,000 Realty Income Sr. Notes,
8.25%, 11/15/2008................. 248,750
613,000 Reebok International,
6.75%, 9/15/2005.................. 602,273
68,000 Sears Roebuck Co, 9.50%,
6/1/1999.......................... 68,340
500,000 Teck Corp, 3.75%, 7/15/2006....... 350,000
</TABLE>
See notes to financial statements.
-20-
<PAGE> 23
VINTAGE MUTUAL FUNDS, Inc.
BOND FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
$ 250,000 Thermo Instrument,
4.00%, 1/15/2005.................. $ 201,875
500,000 Tupperware, 7.25%, 10/1/2006...... 519,375
250,000 WMX Technologies,
6.65%, 5/15/2005.................. 252,187
-----------
5,749,095
------------
Utilities (3.79%)
500,000 Boise Cascade, 7.05%, 5/15/2005... 491,875
75,000 Citizens Utility Co.
6.80%, 8/15/2026.................. 77,812
43,393 Salton Sea, 7.02%, 5/30/2000...... 43,733
200,000 Texas East Trans.,
8.25%, 10/15/2004................. 221,000
-----------
834,420
------------
Total Corporate Bonds............. 7,796,214
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- ---------- ----------- -----
<C> <S> <C>
CERTIFICATES OF DEPOSIT (0.29%)
$ 63,000 Corus Bank CD, 5.50%, 7/9/1999.... $ 63,052
------------
MUTUAL FUNDS (0.09%)
20,589 Government Assets Fund T Shares,
4.76%***.......................... 20,589
------------
Total Investments in Securities
(99.22%)
(Cost $21,663,431)................ $21,812,186
Other Assets & Liabilities
(0.78%)........................... 171,314
------------
NET ASSETS (100.00%).............. $21,983,500
===========
</TABLE>
- -------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation.................... $ 286,684
Unrealized Depreciation.................... $(144,082)
---------
Net Unrealized Appreciation................ $ 142,602
=========
</TABLE>
*** Rate shown is as of March 31, 1999.
See notes to financial statements.
-21-
<PAGE> 24
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE INCOME FUND
The year ended March 31, 1999, continued to focus on enhancing investment income
for Fund shareholders. For the period, the Fund posted a total return after
operating expenses of 5.13 percent*, slightly behind the industry benchmark over
the same period.
During the latter part of the period, the Fund added a number of higher yielding
corporate securities to increase yield for the Fund. We will continue to
identify buying opportunities that allow us to offer a diversified portfolio of
mortgage-backed securities, corporate bonds and Treasury and agency securities
that meet the Fund's investment guidelines.
As of March 31, 1999, approximately 46 percent of the Fund's assets were
invested in mortgage-related securities, 12 percent in treasuries and agencies,
34 percent in corporate bonds and 7 percent in taxable municipal securities,
with the remainder held in cash and cash equivalents. The average maturity of
the Fund's holdings was 7.50 years, and the average credit quality AAA**.
PERFORMANCE REPORT CHART
<TABLE>
<CAPTION>
VINTAGE INCOME FUND LEHMAN BROTHERS LEHMAN BROTHERS AGGREGATE
------------------- INTERMEDIATE INDEX
GOVERNMENT/CORP. BOND -------------------------
INDEX
---------------------
<S> <C> <C> <C>
12/15/92 10000 10000 10000
3/31/93 10454 10484 10598
3/31/94 10708 10741 10904
3/31/95 11079 11221 11563
3/31/96 12047 12293 12809
3/31/97 12426 12884 13438
3/31/98 13583 14129 15050
3/31/99 14279 15055 16025
</TABLE>
- -------------------
*Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's portfolio is subject to change.
The performance of the Vintage Income Fund is measured against the Lehman
Brothers Intermediate Government/Corporate Bond Index and the aggregate index.
The Government/Corporate Bond Index is an unmanaged index generally
representative of the performance of intermediate-term government and corporate
bonds with maturities of 1-10 years. The aggregate index represents the
performance of the overall Bond Market. The indicies do not reflect the
deductions of expenses associated with a mutual fund, such as investment
management fees. The Fund's performance reflects the deduction of fees for these
value-added services.
-22-
<PAGE> 25
VINTAGE MUTUAL FUNDS, Inc.
INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
U.S. TREASURY NOTES (3.91%):
$1,000,000 6.25%, 5/31/2000................. $ 1,014,450
1,050,000 6.125%, 9/30/2000................ 1,066,685
500,000 6.625%, 5/15/2007................ 539,145
1,250,000 6.50%, 5/31/2002................. 1,298,587
------------
Total U.S. Treasury Notes........ 3,918,867
------------
U.S. TREASURY BONDS (7.28%):
1,250,000 7.50%, 11/15/2016................ 1,467,913
5,000,000 7.25%, 8/15/2022................. 5,839,450
------------
Total U.S. Treasury Bonds........ 7,307,363
------------
U.S. GOVERNMENT AGENCIES (0.99%):
Federal Home Loan Mortgage Corp.
1,000,000 5.00%, 2/15/2001................. 996,760
-----------
MORTGAGE RELATED SECURITIES (45.65%):
Collateralized Mortgage Obligations (6.59%)
2,432,369 Federal Agricultural Mortgage
Corp Series CA-10011,
7.589%, 1/25/2002................ 2,511,907
2,000,000 Federal Home Loan Mortgage Corp
Series 1873 D, 7.00%,
4/15/2009........................ 2,041,360
1,138,049 Prudential Home Mortgage
Securities, 7.146%, 3/25/2024.... 1,150,511
886,468 Ryland Mortgage Securities Corp
1993-4 A5, 7.50%, 8/25/2024...... 908,160
------------
6,611,938
------------
Federal Home Loan Mrtge. Corp.
Mortgage-Backed Pools (4.33%)
1,950,506 #C00592, 7.00%, 3/1/2028......... 1,978,612
2,375,822 #19588, 6.50%, 12/1/2028......... 2,365,488
------------
4,344,100
------------
Federal National Mortgage Association
Mortgage-Backed Pools (7.75%)
1,047,979 #303971, 7.50%, 7/1/2016......... 1,074,797
1,994,839 #251614, 7.00%, 4/1/2028......... 2,021,191
2,256,959 #251697, 6.50%, 5/1/2028......... 2,245,426
1,495,537 #252334, 6.50%, 2/1/2029......... 1,487,596
936,731 #430203, 7.00%, 6/1/2028......... 949,236
------------
7,778,246
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MORTGAGE RELATED SECURITIES (CONTINUED):
Government National Mortgage Assoc.
Mortgage-Backed Pools (15.79%)
$1,681,719 7.50%, 10/15/2027................ $ 1,729,631
1,703,501 7.50%, 9/15/2027................. 1,751,931
2,155,281 7.00%, 2/15/2028................. 2,188,472
1,987,405 6.50%, 12/15/2028................ 1,977,508
566,332 8.00%, 3/15/2025................. 588,668
2,349,590 7.00%, 11/15/2028................ 2,384,740
965,459 7.00%, 8/15/2028................. 979,883
2,303,247 6.50% 2/15/2028.................. 2,292,030
1,921,518 7.00%, 6/15/2027................. 1,950,936
------------
15,843,799
------------
Asset Backed Securities (11.19%)
1,000,000 Bear Stearns CBO 1998-1
Class A-2A, 6.72%, 6/15/2010..... 973,750
1,000,000 Chyps CBO Series 1999-1 Class A1,
6.47%, 2/1/2011.................. 978,680
1,000,000 Denver Arena Trust,
6.94%, 11/15/2019................ 936,850
345,956 Green Tree Financial Corp.,
6.00%, 2/1/2030.................. 346,340
652,020 Green Tree Recreational
Equipment, 6.55%, 7/15/2028...... 656,708
2,000,000 Greentree 96-F Class A4,
7.30%, 1/15/2028................. 2,054,040
2,000,000 IMC Home Equity Loan 1996-4
Class A4, 7.11%, 8/25/2014....... 2,021,180
1,208,565 Nations Credit Grantor Trust
97-1, 6.75%, 8/15/2013........... 1,232,506
2,000,000 Olympic Auto 96-D Class A5,
6.25%, 11/15/2004................ 2,027,460
------------
11,227,514
------------
Total Mortgage-Related
Securities....................... 45,805,597
------------
U.S. TAXABLE MUNICIPAL BONDS (7.45%):
1,000,000 Detroit Michigan Building
Authority, 6.60%, 7/1/2003....... 1,029,640
1,000,000 Las Vegas NV., 7.20%, 7/1/2015... 1,033,110
521,800 Mille Lacs Band of Ojibwe Indians
(Grand Casino) Rev. Notes,
8.00%, 6/1/2004.................. 524,268
</TABLE>
See notes to financial statements.
-23-
<PAGE> 26
VINTAGE MUTUAL FUNDS, Inc.
INCOME FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
U.S. TAXABLE MUNICIPAL BONDS (CONTINUED):
$3,640,000 State of Texas Veterans Housing
Fund II-Series B-1,
6.73%, 6/1/2021.................. $ 3,717,860
1,200,000 University of Southern
California, 5.87%, 1/1/2014...... 1,169,856
------------
Total U.S. Taxable Municipal
Bonds............................ 7,474,734
-----------
CORPORATE BONDS (34.06%):
Banking (2.55%)
1,000,000 Bankers Trust N.Y.,
6.625% 7/30/1999................. 1,004,210
1,000,000 First Union Corp., 7.05%,
8/1/2005......................... 1,038,750
500,000 Northern Trust Co,
6.50%, 5/1/2003.................. 515,625
------------
2,558,585
------------
Electric Utility (2.03%)
1,000,000 Philadelphia Electric,
7.375%, 12/15/2001............... 1,007,500
1,000,000 Florida Power & Light,
6.875%, 4/1/2004................. 1,025,000
------------
2,032,500
-----------
Financial Services (7.11%)
500,000 John Deere, 8.625%, 8/1/2019..... 549,375
1,000,000 John Deere Cap, 5.85%,
1/15/2001........................ 1,003,750
1,000,000 Lehman Brothers,
6.625%, 2/5/2006................. 977,500
1,000,000 Norwest Financial, Inc,
7.50%, 4/15/2005................. 1,067,500
1,500,000 Paine Webber Group Inc,
6.45%, 12/1/2003................. 1,500,000
1,000,000 Salomon Smith Barney,
6.875%, 6/15/2005................ 1,013,750
1,000,000 Travelers Property Casualty,
6.75%, 4/15/2001................. 1,017,500
------------
7,129,375
------------
Finance Companies ( 0.72%)
750,000 Avalon Bay, 6.80%, 7/15/2006..... 719,062
------------
Government Agency (0.70%)
700,000 Quebec Province,
6.185%, 3/10/2026................ 699,125
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Health Care (1.58%)
$1,950,000 Healthsouth Corp, 3.25%,
4/1/2003......................... $ 1,589,250
------------
Industrial Goods and Services (8.20%)
1,000,000 Dayton Hudson, 9.84%,
9/15/2000........................ 1,056,250
2,000,000 Fletcher Challng Cap Can,
7.75%, 6/20/2006................. 1,995,000
1,000,000 Ford Motor Company,
7.125%, 11/15/2025............... 1,027,500
1,000,000 Ikon Office, 6.75%, 11/1/2004.... 955,000
950,000 K-Mart Corp, 7.17%, 7/24/2000.... 963,063
1,100,000 Pennzoil Co, 10.625%, 6/1/2001... 1,104,125
1,400,000 Thermo Instrument,
4.00%, 1/15/2005................. 1,130,500
------------
8,231,438
------------
Restaurants (0.20%)
190,000 Secured Restaurant Trust,
10.25%, 11/15/2000............... 203,150
-----------
Retail Stores (3.11%)
3,000,000 J.C. Penney & Co.,
7.375%, 8/15/2008................ 3,123,750
------------
Real Estate (4.50%)
2,000,000.. HRPT Properties Trust,
6.875%, 8/26/2002................ 1,995,000
1,550,000 Nationwide Health Properties,
7.23%, 11/8/2006................. 1,519,000
1,000,000 Simon Property Group, Inc.,
7.125%, 2/9/2009................. 998,750
------------
4,512,750
------------
Telecommunications (3.36%)
250,000 AT&T Corp., 8.20%, 2/15/2005..... 255,937
1,000,000 GTE Florida, Inc.,
6.25%, 11/15/2005................ 1,006,250
1,000,000 MCI Communications Corp.,
8.25%, 1/20/2023................. 1,056,250
1,000,000 United Telephone Co. of Florida,
7.25%, 12/15/2004................ 1,052,500
------------
3,370,937
------------
Total Corporate Bonds............ 34,169,922
------------
</TABLE>
See notes to financial statements.
-24-
<PAGE> 27
VINTAGE MUTUAL FUNDS, Inc.
INCOME FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUTUAL FUNDS (1.09%):
$1,093,978 Government Assets Fund T Shares,
4.76%*........................... $ 1,093,978
------------
Total Investments in Securities
(100.43%)(a) (Cost
$100,578,833).................... $100,767,221
Other Assets & Liabilities
(-0.43%)......................... (426,646)
------------
NET ASSETS (100.00%)............. $100,340,575
============
</TABLE>
- ------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation.................... $ 960,402
Unrealized Depreciation.................... $(772,014)
---------
Net Unrealized Appreciation................ $ 188,388
=========
</TABLE>
* Rate shown is as of March 31, 1999.
See notes to financial statements.
-25-
<PAGE> 28
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE MUNICIPAL BOND FUND
Municipal yields moved to a position of more fair relative value in the last
half of the period ended March 31, 1999. Throughout the period, the Fund was
focused on identifying attractive buying opportunities in a challenging yield
environment.
The Fund produced a total return after operating expenses of 4.64 percent* for
the year ended March 31, 1999, slightly lagging the industry benchmark. We
anticipate the Fund's average maturity will remain near its performance
benchmark over the next quarter or two.
Demand for tax-exempt securities appears firm at this point while the volume of
future issue supply is relatively limited.
As of March 31, 1999, the portfolio was widely diversified with 72 holdings in a
wide cross-section of states. As of the same date, the average maturity of the
Fund's holdings was 5.7 years; the average credit quality was AA1**.
PERFORMANCE REPORT CHART
<TABLE>
<CAPTION>
MERRILL LYNCH INTERMEDIATE
VINTAGE MUNICIPAL BOND FUND MUNICIPAL BOND INDEX
--------------------------- --------------------------
<S> <C> <C>
2/16/93 10000 10000
3/31/93 10090 10108
3/31/94 10372 10320
3/31/95 10920 10955
3/31/96 11731 11868
3/31/97 12108 12410
3/31/98 13063 13522
3/31/99 13670 14308
</TABLE>
- -------------------
*Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's portfolio is subject to change.
The performance of the Vintage Municipal Bond Fund is measured against the
Merrill Lynch Intermediate Municipal Bond Index, an unmanaged index generally
representative of the performance of municipal bonds with maturities of 1-20
years. The index does not reflect the deduction of expenses associated with a
mutual fund, such as investment management fees. The Fund's performance reflects
the deduction of fees for these value-added services.
-26-
<PAGE> 29
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (87.01%):
Arizona (2.08%)
$1,000,000 Phoenix, AZ G.O.,
5.00%, 7/1/2010................... $ 1,039,790
------------
Delaware (1.02%)
500,000 Sussex County, DE,
4.90%, 10/15/2001................. 511,740
------------
Florida (6.28%)
1,000,000 Dade County, FL, 7.65%,
4/1/2010.......................... 1,060,160
500,000 Florida School Boards Assoc., Inc.
Lease Revenue, 6.75%, 7/1/2004.... 521,295
500,000 Jacksonville, FL Electric
Authority Revenue, 5.125%,
10/1/2007......................... 518,370
500,000 Martin County, FL, General
Obligation, 4.25%, 2/1/2001....... 506,875
500,000 State of Florida Board of
Education, 5.125%, 6/1/2005....... 530,165
-----------
3,136,865
------------
Idaho (1.05%)
500,000 Meridian Joint School District, #2
Idaho, 5.00%, 7/30/2003........... 523,945
------------
Illinois (16.26%)
200,000 Cherry Valley General Obligations,
6.60%, 1/1/2001................... 209,866
500,000 Chicago, IL Metropolitan Water,
5.25%, 12/1/2004.................. 533,210
1,000,000 Illinois Health
Facility-Northwestern,
6.75%, 8/15/2011.................. 1,080,980
465,000 Illinois Housing Development
Authority Single Family,
6.50%, 2/1/2009................... 504,385
1,000,000 Illinois State Sales Tax Revenue,
5.00%, 6/15/2009.................. 1,044,660
1,000,000 Joliet Illinois,
6.25%, 1/1/2011................... 1,057,430
500,000 Kane County, IL Motor Fuel
Transport Revenue, 5.40%,
3/1/2006.......................... 522,730
1,000,000 Kendall & Kane Countys, IL CSD
#115 Yorkville, 5.65%, 1/1/2008... 1,080,580
1,000,000 Macon County And Decatur Illinois
Ctf Partn, 6.50%, 1/1/2004........ 1,107,560
145,000 Metropolitan Pier & Exposition
Authority Illinois, 5.205%,
6/15/1999......................... 145,624
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
$ 155,000 Metropolitan Pier & Exposition
Authority Illinois, 5.20%,
6/15/1999......................... $ 155,629
400,000 Sangamon County, Il Certificate
Participation, 6.40%, 12/1/2000... 418,272
250,000 Winnebago County, Il School
District 122, 5.75%, 6/1/2001..... 261,535
-----------
8,122,461
------------
Indiana (19.52%)
1,000,000 Evansville, IN Building Authority,
5.30%, 8/1/2008................... 1,069,010
1,000,000 Highland, IN Sch Bldg Corp,
5.25%, 7/5/2014................... 1,016,410
500,000 Indiana Bond Bank (Elkhart Water/
Sewer Refunding), 5.55%,
11/1/2010......................... 531,745
1,000,000 Indiana University Higher Ed,
6.80%, 8/1/2004................... 1,082,290
1,000,000 Indianapolis IN Utilities District
Reference, 4.00%, 6/1/2012........ 941,180
1,000,000 Indianapolis, IN Public
Transportation,
6.00%, 7/1/2010................... 1,090,590
1,000,000 Indianapolis, IN Trans Fin
Authority,
6.25%, 11/1/2016.................. 1,078,820
1,000,000 Kokomo-Center, IN School Building
Corp., 6.75%, 7/15/2004........... 1,126,290
750,000 Marion County, IN,
6.60%, 6/1/2003................... 807,060
1,000,000 Vinton-Tecumseh School Bldg
Indiana,
4.25%, 7/5/2003................... 1,007,700
-----------
9,751,095
------------
Iowa (1.10%)
500,000 Iowa State Certificate
Participation,
6.50%, 7/1/2006................... 547,780
------------
Massachusetts (1.08%)
500,000 Massachusetts Bay Transportation
Authority, 5.30%, 3/1/2008........ 538,010
------------
Minnesota (2.10%)
1,000,000 Minneapolis, MN, Reference Series
A,
5.10%, 12/1/2008.................. 1,050,850
------------
</TABLE>
See notes to financial statements.
-27-
<PAGE> 30
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL BOND FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
Nevada (1.02%)
$ 500,000 State of Nevada,
4.40%, 11/1/2001.................. $ 510,685
------------
New Jersey (1.05%)
500,000 New Jersey Wastewater Treatment
Trust Series A, 4.80%, 9/1/2006... 522,495
------------
New York (2.02%)
1,000,000 Long Island NY Power,
4.10%, 12/1/2000.................. 1,010,370
------------
Rhode Island (1.55%)
500,000 Rhode Island State,
4.90%, 6/15/2004.................. 522,605
250,000 Rhode Island State Construction
Capital Development, Series B,
6.00%, 5/15/1999.................. 250,840
-----------
773,445
------------
Texas (7.48%)
500,000 Dallas, TX, Water & Sewer,
4.90%, 4/1/2004................... 517,605
1,000,000 Pharr-San Juan-Alamo, TX.
Independent School District,
5.25%, 2/1/2008................... 1,059,140
900,000 Sam Rayburn Texas Municipal,
6.00%, 9/1/2010................... 1,027,242
1,000,000 San Antonio, TX,
6.00%, 8/1/2008................... 1,133,610
-----------
3,737,597
------------
Utah (1.08%)
500,000 Salt Lake County, UT,
5.50% 12/15/2004.................. 541,870
------------
Virginia (2.57%)
1,000,000 Virginia Beach, VA,
5.40%, 9/1/2009................... 1,082,800
195,000 Virginia Educational Loan
Authority Series E, 5.50%,
3/1/2001.......................... 201,185
-----------
1,283,985
------------
Washington (9.04%)
1,000,000 Benton County, WA, Public Utility,
5.45%, 11/1/2008.................. 1,075,090
800,000 Grant County, WA, Public Utilities
Hydro-Electric, 5.60%, 1/1/2010... 859,056
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUNICIPAL BONDS (CONTINUED):
$ 500,000 Seattle, WA, Water System Revenue,
4.70%, 12/1/2000.................. $ 510,565
1,000,000 Thurston County, WA #111,
5.00%, 12/1/2010.................. 1,028,140
500,000 Washington State,
6.80%, 10/01/2002................. 508,660
500,000 Washington State Government
Obligation, 5.35%, 9/1/2006....... 533,190
-----------
4,514,701
------------
Wisconsin (10.18%)
500,000 City of Beloit, WI, Sewer System
Revenue Bond, 4.80%, 7/1/2005..... 519,935
500,000 Franklin, WI, Public School
District,
4.75%, 4/1/2004................... 517,070
500,000 Green Bay, WI, Area School Dist.,
4.40%, 4/1/2002................... 509,595
400,000 Kenosha, WI, Series A,
4.90%, 4/1/1999................... 400,000
500,000 Madison, WI
5.00%, 4/1/2005................... 525,350
500,000 Milwaukee, WI,
5.15%, 11/15/2008................. 523,480
500,000 Sturgen Bay,
4.90%, 1/1/2006................... 515,550
500,000 Wisconsin Housing & Economic
Development Revenue Bond,
5.20%, 11/1/2006.................. 517,485
1,000,000 Wisconsin State Series A,
5.00%, 5/1/2009................... 1,054,180
-----------
5,082,645
------------
Wyoming (0.52%)
250,000 Cheyenne, Wy General Obligations
Unlimited, 5.45%, 12/1/2001....... 262,035
-----------
Total Municipal Bonds............. 43,462,364
------------
</TABLE>
See notes to financial statements.
-28-
<PAGE> 31
VINTAGE MUTUAL FUNDS, Inc.
MUNICIPAL BOND FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (11.54%):
$1,000,000 Alaska Student Loan,
5.625%, 7/1/2007.................. $ 1,061,740
500,000 Austin, TX, Airport Revenue,
5.50%, 11/15/2006................. 539,290
300,000 Illinois Student Assistance
Commission, Student Loan Revenue,
Series M, 6.30%, 3/1/2003......... 320,424
500,000 Iowa Student Loan,
5.75%, 12/1/2006.................. 531,470
1,000,000 Iowa Student Loan Liquidity Corp.
Series C, 5.10%, 6/1/2009......... 1,033,610
455,000 Massachusetts Education Loan
Authority, 5.60%, 7/1/2006........ 485,635
35,000 New Mexico Educational Assistance,
5.75%, 8/1/2007................... 36,143
500,000 South Dakota Student Loan,
5.85%, 8/1/2000................... 515,130
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (CONTINUED):
$ 190,000 Student Loan Funding Corp., Series
C, 5.50%, 12/1/2001............... $ 195,675
1,000,000 Utah Bd Regents, 5.20%,
5/1/2008.......................... 1,043,340
-----------
Total Alternative Minimum Tax
Paper............................. 5,762,457
------------
MUTUAL FUNDS (2.56%):
1,280,212 B.T. Tax Free Money Fund,
2.56%*............................ 1,280,212
------------
Total Investments in Securities
(101.11%)
(Cost $48,922,077)................ $50,505,033
Other Assets & Liabilities
(-1.11%).......................... (554,940)
------------
NET ASSETS (100.00%).............. $49,950,093
===========
</TABLE>
- ------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation................... $1,633,112
Unrealized Depreciation................... $ (50,156)
----------
Net Unrealized Appreciation............... $1,582,956
==========
</TABLE>
* Rate shown is as of March 31, 1999.
See notes to financial statements.
-29-
<PAGE> 32
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE VINTAGE BALANCED FUND
The year ended March 31, 1999, provided better than average Balanced Fund
performance compared to historical averages. The Fund's asset allocation in
favor of stocks benefited shareholders during the period. Also, the types of
stocks held in the equity portion of the Fund performed quite well during the
period.
For the year ended March 31, 1999, the Fund produced a total return after
operating expenses of 12.66 percent*, outperforming the Fund's performance
benchmark.
MANAGING FOR THE FUTURE
The domestic economy continues to show surprising strength, coupled with little
indication of inflationary influence. We are focused on monitoring those factors
that might impact the possibilities of material inflation in 1999, including
commodity prices and unemployment. The fixed income portion of the fund will
maintain an average maturity near the index and the equity portion of the Fund
will remain fully invested.
As of March 31, 1999, approximately 36 percent of the portfolio's assets were
invested in fixed income securities and 64 percent was invested in stocks. The
top five equity holdings in the portfolio were: Microsoft (2.21% of the
portfolio's assets), Cisco Systems (1.87%), General Electric (1.73%), Kansas
City Southern (1.72%), and Lowe's (1.62%). The fixed income portion of the
portfolio was invested in a variety of U.S. Treasury and agency securities,
corporate bonds, and mortgage-related securities. The average credit quality was
AAA**.
PERFORMANCE REPORT CHART
<TABLE>
<CAPTION>
VINTAGE BALANCED FUND 50% S&P 500 STOCK INDEX/50%
--------------------- LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CORP. BOND INDEX
----------------------------
<S> <C> <C>
6/1/95 10000.00 10000.00
9/30/95 10626.00 10634.00
3/31/96 11329.00 11391.00
9/30/96 12149.00 11970.00
3/31/97 12582.00 12785.00
9/30/97 15167.00 14795.00
3/31/98 16792.00 16337.00
9/30/98 15970.00 16343.00
3/31/99 18918.00 18460.00
</TABLE>
- -------------------
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed,
may be worth more or less than their original cost.
** The composition of the Fund's holdings is subject to change.
The performance of the Vintage Balanced Fund is measured against a composite of
the S&P 500 Index, an unmanaged index generally representative of the
performance of the U.S. stock market, and the Lehman Brothers Intermediate
Government/Corporate Bond Index, an unmanaged index generally considered to be
representative of the performance of government and corporate bonds with
maturities of 1-10 years. In the composite, each index is given a 50 percent
weighting. The two indices do not reflect the deduction of expenses associated
with a mutual fund, such as investment management fees. The Fund's performance
reflects the deduction of fees for these value-added services.
-30-
<PAGE> 33
VINTAGE MUTUAL FUNDS, Inc.
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
U.S. TREASURY NOTES (5.09%):
$1,500,000 5.75%, 10/31/2000................. $ 1,516,590
1,250,000 6.25%, 1/31/2002.................. 1,287,050
500,000 6.25%, 5/31/2000.................. 507,225
500,000 6.625%, 5/15/2007................. 539,145
250,000 6.125%, 8/15/2007................. 261,735
235,000 7.875%, 11/15/1999................ 239,453
-----------
Total U.S. Treasury Notes......... 4,351,198
------------
U.S. TREASURY BONDS (3.02%):
1,300,000 7.50%, 11/15/2016................. 1,526,629
900,000 7.25%, 8/15/2022.................. 1,051,101
-----------
Total U.S. Treasury Bonds......... 2,577,730
------------
U.S. GOVERNMENT AGENCY (1.70%):
500,000 Federal Home Loan Bank,
5.125%, 9/15/2003................. 492,275
500,000 Federal Home Loan Bank,
5.50%, 8/13/2001.................. 502,600
100,000 Federal Home Loan Mrtge. Corp.,
6.90%, 9/10/2007.................. 103,445
350,000 Federal National Mrtge. Assoc.,
6.05%, 7/28/2003.................. 350,711
-----------
Total U.S. Government Agency...... 1,449,031
------------
MORTGAGE RELATED SECURITIES (10.57%):
Collateralized Mortgage Obligations (0.53%)
38,458 Federal National Mrtge. Assoc.,
1992-34 Class E, 7.00%,
7/25/2020......................... 38,645
240,203 Federal National Mrtge. Assoc.,
1992-46 Class J, 5.00%,
1/25/2007......................... 235,899
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MORTGAGE RELATED SECURITIES (CONTINUED):
$ 71,062 Government National Mrtge. Assoc.,
1994-6 Class G, 7.99%,
12/16/2019........................ $ 71,736
144,017 Salomon Bros. Mortgage Sec. VII,
1995-1 Class PO 10.54%***,
2/25/2025......................... 103,872
-----------
450,152
------------
Federal Home Loan Mortgage Corp. Mortgage-
Backed Pools (1.98%)
487,626 #C00592, 7.00%, 3/1/2028.......... 494,653
19,320 #A00851, 8.50%, 12/1/2019......... 20,203
585,963 #17281, 6.50%, 11/1/2028.......... 583,437
593,956 #19588, 6.50%, 12/1/2028.......... 591,372
-----------
1,689,665
------------
Federal National Mortgage Assoc.
Mortgage-Backed Pools (2.56%)
117,812 #251286, 7.00%, 11/1/2027......... 119,360
564,240 #251697, 6.50%, 5/1/2028.......... 561,357
498,512 #252334, 6.50%, 2/1/2029.......... 495,865
598,627 #428865, 7.00%, 6/1/2028.......... 606,643
399,609 #430203, 7.00%, 6/1/2028.......... 404,944
-----------
2,188,169
------------
Government National Mortgage Assoc. Mortgage-
Backed Pools (4.86%)
575,812 #462556, 6.50%, 2/15/2028......... 573,008
480,379 #780584, 7.00%, 6/15/2027......... 487,734
420,430 7.50%, 10/15/2027................. 432,408
67,166 #305975, 9.00%, 7/15/2021......... 71,296
27,316 #318184, 8.50%, 11/15/2021........ 28,703
65,228 #359600, 7.50%, 7/15/2023......... 67,044
175,186 #376218, 7.50%, 8/15/2025......... 180,163
67,605 #385300, 8.00%, 10/15/2024........ 70,240
46,484 #410049, 8.00%, 7/15/2025......... 48,284
127,113 #412334, 7.00%, 10/15/2027........ 129,020
496,851 #486760, 6.50%, 12/15/2028........ 494,377
272,678 #780075, 8.00%, 3/15/2025......... 283,433
</TABLE>
- -------------------
*** 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.
See notes to financial statements.
-31-
<PAGE> 34
VINTAGE MUTUAL FUNDS, Inc.
BALANCED FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MORTGAGE RELATED SECURITIES (CONTINUED):
$ 191,755 #780619, 7.00%, 8/15/2012......... $ 196,846
587,398 #469699, 7.00%, 11/15/2028........ 596,185
482,729 #486467, 7.00%, 8/15/2028......... 489,941
-----------
4,148,682
------------
Asset Backed Securities (0.64%)
298,842 Green Tree Recreational Equipment,
6.55%, 7/15/2028.................. 300,991
250,000 Olympic Auto Trust,
6.00%, 6/15/2002.................. 250,655
-----------
551,646
------------
Total Mortgage-Related
Securities........................ 9,028,314
------------
U.S. TAXABLE MUNICIPAL BONDS (1.75%):
205,000 Berry Creek, CO, 6.65%,
12/1/2001......................... 208,944
195,000 Fulton, MO Golf Course,
7.60%, 7/1/2011................... 212,258
179,931 Mille Lacs Band Of Ojibwe Indians,
8.00%, 6/1/2004................... 180,782
200,000 New Orleans, LA Hsg. Dev.,
8.00%, 12/1/2003.................. 202,400
60,000 Northwest Nazarene College, ID,
6.75%, 11/1/1999.................. 60,441
54,981 Oregon D.O.T., 9.00%, 6/15/2000... 55,859
250,000 Portland, OR Multifamily Hsg.,
7.625%, 12/1/2001................. 248,300
35,000 Texas State G.O., 8.70%,
12/1/2009......................... 38,907
300,000 University of Southern California,
5.87%, 1/1/2014................... 292,464
-----------
Total U.S. Taxable Municipal
Bonds............................. 1,500,355
------------
CORPORATE BONDS (12.20%):
Banking (0.66%)
500,000 BankAmerica Corp.,
8.50%, 1/15/2007.................. 564,375
------------
Electric Utility (0.59%)
500,000 Washington Water And Power,
6.24%, 10/2/2000.................. 501,875
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Financial Services (4.38%)
$ 500,000 Bear Stearns, 6.25%, 7/15/2005.... $ 490,000
500,000 General Motors Acceptance Corp,
7.50%, 4/11/2000.................. 509,870
210,000 Hubco, Inc, 7.75%, 1/15/2004...... 221,025
1,000,000 John Deere Cap, 5.85%,
1/15/2001......................... 1,003,750
250,000 Lehman Bros. MTN,
8.05%, 1/15/2019.................. 255,313
250,000 Merrill Lynch, 6.25%,
10/15/2008........................ 248,750
500,000 Paine Webber Group Inc,
6.45%, 12/1/2003.................. 500,000
500,000 Salomon Smith Barney,
6.625%, 11/15/2003................ 511,250
-----------
3,739,958
------------
Finance Companies (0.28%)
250,000 Avalon Bay, 6.80%, 7/15/2006...... 239,687
------------
Government Agency (0.35%)
300,000 Quebec Province, 6.185%,
3/10/2026......................... 299,625
------------
Health Care (0.52%)
550,000 Healthsouth Corp,
3.25%, 4/1/2003................... 448,250
------------
Industrial Goods and Services (3.80%)
500,000 Burlington Resources,
9.625%, 6/15/2000................. 523,125
500,000 Cummins Engine, 6.75%,
2/15/2027......................... 498,750
500,000 Fletcher Challenge Cap Can,
7.75%, 6/20/2006.................. 498,750
250,000 Ford Motor Company,
7.125%, 11/15/2025................ 256,875
500,000 Ikon Office, 6.75%, 11/1/2004..... 477,500
300,000 K Mart Corp, 7.17%, 7/24/2000..... 304,125
400,000 Pennzoil Co., 10.625%, 6/1/2001... 401,500
350,000 Thermo Instrument,
4.00%, 1/15/2005.................. 282,625
-----------
3,243,250
------------
</TABLE>
See notes to financial statements.
-32-
<PAGE> 35
VINTAGE MUTUAL FUNDS, Inc.
BALANCED FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
CORPORATE BONDS (CONTINUED):
Real Estate (0.98%)
$ 500,000 HRPT Properties Trust,
6.875%, 8/26/2002................. $ 498,750
350,000 Nationwide Health Properties,
7.23%, 11/8/2006.................. 343,000
-----------
841,750
------------
Sovereign (0.21%)
150,000 Nova Scotia,
8.25%, 11/15/2019................. 176,625
------------
Telecommunications (0.31%)
250,000 AT&T Corp.,
7.00%, 5/15/2005.................. 261,563
------------
Transportation and Shipping (0.12%)
100,000 ATCH Top & SF,
7.09%, 2/15/2001.................. 101,816
-----------
Total Corporate Bonds............. 10,418,774
------------
COMMON STOCKS (63.93%):
Automotive Parts & Equipment (0.25%)
5,000 Federal Mogul Corp. .............. 215,000
------------
Banking (3.89%)
16,584 Bank Of America................... 1,171,245
23,400 Bank Of New York Co., Inc. ....... 840,938
6,000 Firstar Corp. .................... 537,000
22,000 Wells Fargo Company............... 771,375
-----------
3,320,558
------------
Chemicals (1.55%)
12,400 Air Products & Chemicals.......... 424,700
19,500 Monsanto Co. ..................... 895,781
-----------
1,320,481
------------
Computer Hardware (5.91%)
14,625 Cisco Systems, Inc. .............. 1,602,352
32,100 Compaq Computer Corp. ............ 1,017,169
6,400 IBM............................... 1,134,400
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
6,000 Lexmark International Group**..... $ 670,500
5,000 Sun Microsystems, Inc.**.......... 624,687
-----------
5,049,108
------------
Computer-Software & Peripheral (2.23%)
21,200 Microsoft Corporation**........... 1,900,050
------------
Consumer Goods & Services (2.52%)
5,000 Clorox............................ 585,938
15,000 Gillette Co. ..................... 891,562
6,900 Procter & Gamble Co. ............. 675,769
-----------
2,153,269
------------
Containers & Packaging (0.66%)
9,800 Avery Dennison Corp. ............. 563,500
------------
Diversified (2.90%)
25,900 Kansas City Southern Inds......... 1,476,300
14,000 Tyco International, Ltd. ......... 1,004,500
-----------
2,480,800
------------
Electrical & Electronic (3.54%)
8,000 Emerson Electric Company.......... 423,500
13,400 General Electric Co. ............. 1,482,375
23,000 Solectron Corp. .................. 1,116,938
-----------
3,022,813
------------
Entertainment (1.64%)
11,400 Disney (Walt) Co. ................ 354,825
20,000 Mattel............................ 497,500
20,000 News Corp Ltd Pfd Adr............. 550,000
-----------
1,402,325
------------
Financial Services (3.25%)
19,600 Assoc. First Capital "A".......... 882,000
10,000 Equitable Cos., Inc. ............. 700,000
10,000 Fannie Mae........................ 692,500
5,000 Morgan Stanley Dean Witter &
Co. .............................. 499,688
-----------
2,774,188
------------
</TABLE>
- -------------------
** Represents non-income producing securities.
See notes to financial statements.
-33-
<PAGE> 36
VINTAGE MUTUAL FUNDS, Inc.
BALANCED FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
Food Retail (1.02%)
17,000 Safeway, Inc.**................... $ 872,312
------------
Health Care Products and Services (1.83%)
19,500 Cardinal Health, Inc. ............ 1,287,000
26,900 Healthsouth Corp.**............... 279,087
-----------
1,566,087
------------
Home Furnishings (1.43%)
25,700 Newell Rubbermaid, Inc. .......... 1,220,750
------------
Industrial Goods & Services (1.28%)
8,100 United Technologies Corp. ........ 1,097,044
------------
Insurance (3.07%)
20,000 Allstate Corp. ................... 741,250
7,312 American International Group,
Inc. ............................. 882,010
13,500 Marsh & Mclennan Co. ............. 1,001,531
-----------
2,624,791
------------
Medical Equipment & Supplies (1.26%)
15,000 Medtronic, Inc. .................. 1,076,250
------------
Newspaper & Publishing (1.09%)
10,600 Gannett, Inc. .................... 667,800
4,000 Tribune Co. ...................... 261,750
-----------
929,550
------------
Oil & Gas Exploration Products & Services
(1.50%)
8,300 Halliburton Co. .................. 319,550
8,800 Schlumberger, Ltd. ............... 529,650
11,000 Williams Co. ..................... 434,500
-----------
1,283,700
------------
Pharmaceuticals (8.45%)
20,800 Abbott Laboratories............... 973,700
11,600 Bristol-Myers Squibb Co........... 746,025
12,500 Elan Corp. ADR**.................. 871,875
11,100 Lilly (Eli) & Co. ................ 942,112
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
9,700 Pfizer, Inc. ..................... $ 1,345,875
12,000 Schering-Plough Corp. ............ 663,750
20,000 Warner Lambert Co. ............... 1,323,750
8,000 Watson Pharmaceutical Inc.**...... 353,000
-----------
7,220,087
------------
Retail -- General Merchandise (2.82%)
17,000 Dayton Hudson Corp. .............. 1,132,625
18,000 Kohl's Corp. ..................... 1,275,750
-----------
2,408,375
------------
Retail -- Specialty Stores (4.18%)
22,200 CVS Corp. ........................ 1,054,500
23,000 Lowe's Cos........................ 1,391,500
34,200 Staples, Inc. .................... 1,124,325
-----------
3,570,325
------------
Semiconductors (0.70%)
5,000 Intel Corp. ...................... 595,625
------------
Technology (1.03%)
16,000 Computer Sciences Corp.**......... 883,000
------------
Telecommunications (2.21%)
10,000 Alltel............................ 623,750
8,800 Ameritech Corp. .................. 509,300
16,000 SBC Communications, Inc. ......... 754,000
-----------
1,887,050
------------
Telecommunications-Services and Equipment (3.72%)
14,000 Northern Telecom Limited.......... 869,750
13,000 AT&T Corp. ....................... 1,037,562
11,800 Lucent Technologies............... 1,271,450
-----------
3,178,762
------------
Total Common Stocks............... 54,615,800
------------
</TABLE>
- -------------------
** Represents non-income producing securities.
See notes to financial statements.
-34-
<PAGE> 37
VINTAGE MUTUAL FUNDS, Inc.
BALANCED FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
MUTUAL FUNDS (2.17%):
1,851,977 Government Assets Fund T Shares,
4.17%*............................ $ 1,851,977
------------
Total Investments in Securities
(100.43%)
(Cost $68,771,047)................ $85,793,179
Other Assets & Liabilities
(-0.43%).......................... (369,063)
------------
NET ASSETS (100.00%).............. $85,424,116
===========
</TABLE>
- -------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation.................. $18,205,201
Unrealized Depreciation.................. $(1,183,069)
-----------
Net Unrealized Appreciation.............. $17,022,132
===========
</TABLE>
* Rate shown is as of March 31, 1999.
See notes to financial statements.
-35-
<PAGE> 38
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE VINTAGE EQUITY FUND
This past fiscal year will likely be remembered as the year that dramatized the
impact of the technology sector on the equity markets. Companies associated with
technology initiatives were alternately the blessing or the curse of managed
portfolios. Many companies that experienced dramatic increases in market
valuation had little or no history of generating net earnings for shareholders.
The market seemed caught up in an "internet frenzy" as the technology sector
accounted for over 17 percent of the S&P 500 Index on December 31, 1998, up
dramatically from 12 percent one year earlier.
The Vintage Equity Fund was well represented in the technology advance, buying
relatively more mature companies like Microsoft (MFST), Lucent (LU), and Cisco
Systems (CSCO). These companies offered particular value to Vintage shareholders
because they dominate their respective businesses in an expanding industry.
These and other companies helped the Vintage Equity Fund produce a total return
after operating expenses of 15.72 percent for the period ended March 31, 1999,
for Class S shares.
LOOKING FORWARD
We continue to believe strongly in the continued strength of the domestic
economy. Vintage Equity Fund portfolio holdings will continue to be focused on
larger capitalization companies in the growth sector of the economy. This will
position the Fund to take advantage of further growth opportunities we
anticipate these market-leading companies will experience.
As of March 31, 1999, the portfolio was fully invested and widely diversified
with positions in some 60 different companies. As of that date, the Fund's top
five holdings were: General Electric (2.70% of the portfolio's assets), Pfizer,
Inc. (2.60%), Xilinx, Inc. (2.28%), American International Group (2.26%), and
Bank of America (2.25%)**.
<TABLE>
<CAPTION>
VINTAGE EQUITY FUND - - S VINTAGE EQUITY FUND - - T
SHARES SHARES S&P 500 STOCK INDEX
------------------------- ------------------------- -------------------
<S> <C> <C> <C>
12/15/92 10000 10000 10000
3/31/93 10245 10245 10521
3/31/94 10291 10291 10675
3/31/95 11911 11911 12333
3/31/96 15481 15481 16288
3/31/97 18322 18322 19513
3/31/98 26666 26679 28920
3/31/99 30856 30914 34258
</TABLE>
- -------------------
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed,
may be worth more or less than their original cost.
** The composition of the Fund's holdings is subject to change.
The performance of the Vintage Equity Fund is measured against the S&P 500
Index, an unmanaged index generally representative of the performance of the
U.S. stock market. The index does not reflect the deduction of expenses
associated with a mutual fund, such as investment management fees. The Fund's
performance reflects the deduction of fees for these value-added services.
-36-
<PAGE> 39
VINTAGE MUTUAL FUNDS, Inc.
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
COMMON STOCKS (99.61%):
Banking (5.95%)
170,000 Bank Of America................. $ 12,006,250
220,000 Bank Of New York Co., Inc. ..... 7,906,250
140,000 Regions Financial............... 4,847,500
200,000 Wells Fargo Company............. 7,012,500
------------
31,772,500
------------
Broadcasting (1.88%)
150,000 Clear Channel
Communications**................ 10,059,375
------------
Business Services (1.98%)
90,000 American Express Co. ........... 10,575,000
------------
Chemicals (3.34%)
150,000 Avery Dennison Corp. ........... 8,625,000
200,000 Monsanto Co. ................... 9,187,500
------------
17,812,500
------------
Computer Hardware (7.43%)
100,000 Cisco Systems, Inc.**........... 10,956,250
100,000 Gateway 2000, Inc.**............ 6,856,250
60,000 IBM............................. 10,635,000
90,000 Sun Microsystems, Inc.**........ 11,244,375
------------
39,691,875
------------
Computer -- Software and Peripherals (2.01%)
120,000 Microsoft Corporation**......... 10,755,000
------------
Consumer Goods & Services (7.22%)
160,000 Avon Products, Inc. ............ 7,530,000
100,000 Colgate Palmolive Co. .......... 9,200,000
221,000 Conagra, Inc. .................. 5,649,313
140,000 Gillette Co. ................... 8,321,250
80,000 Procter & Gamble Co. ........... 7,835,000
------------
38,535,563
------------
Diversified (4.14%)
70,000 Minnesota Mining and
Manufacturing Co. .............. 4,952,500
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
120,000 Textron, Inc. .................. $ 9,285,000
110,000 Tyco International, Ltd. ....... 7,892,500
------------
22,130,000
------------
Electrical & Electronic (3.40%)
130,000 General Electric Co. ........... 14,381,250
50,000 Honeywell, Inc. ................ 3,790,625
------------
18,171,875
------------
Electronic Components/Instruments (1.23%)
80,000 Koninklijke Phillips Electronics
N.V............................. 6,595,000
------------
Entertainment (1.17%)
200,000 Disney (Walt) Co. .............. 6,225,000
------------
Financial Services (8.23%)
70,000 Equitable Cos., Inc. ........... 4,900,000
130,000 Fannie Mae...................... 9,002,500
180,000 Federal Home Loan Mortgage
Corp. .......................... 10,282,500
110,000 Morgan Stanley Dean Witter &
Co. ............................ 10,993,125
220,000 Paine Webber Group, Inc. ....... 8,772,500
------------
43,950,625
------------
Health Care Products and Services (3.41%)
150,000 Abbott Laboratories............. 7,021,875
130,000 Cardinal Health, Inc. .......... 8,580,000
250,000 Healthsouth Corp.**............. 2,593,750
------------
18,195,625
------------
Home Furnishings (1.78%)
200,000 Newell Rubbermaid, Inc. ........ 9,500,000
------------
Insurance (5.27%)
220,000 Allstate Corp. ................. 8,153,750
100,000 American International Group,
Inc. ........................... 12,062,500
80,000 Lincoln National Corp. ......... 7,910,000
------------
28,126,250
------------
</TABLE>
- -------------------
** Represents non-income producing securities.
See notes to financial statements.
-37-
<PAGE> 40
VINTAGE MUTUAL FUNDS, Inc.
EQUITY FUND (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
Medical Equipment & Supplies (2.02%)
150,000 Medtronic, Inc. ................ $ 10,762,500
------------
Miscellaneous (1.25%)
150,000 Waste Management, Inc. ......... 6,656,250
------------
Newspaper & Publishing (1.18%)
100,000 Gannett, Inc. .................. 6,300,000
------------
Pharmaceuticals (12.04%)
170,000 American Home Products Corp. ... 11,092,500
80,000 Elan Corp. ADR**................ 5,580,000
140,000 Lilly (Eli) & Co. .............. 11,882,500
170,000 Mylan Laboratories.............. 4,664,375
100,000 Pfizer, Inc. ................... 13,875,000
160,000 Warner Lambert Co. ............. 10,590,000
150,000 Watson Pharmaceutical Inc.**.... 6,618,750
------------
64,303,125
------------
Photography (1.20%)
100,000 Eastman Kodak Co. .............. 6,387,500
------------
Retail -- General Merchandise (4.10%)
180,000 Dayton Hudson Corp. ............ 11,992,500
140,000 Kohl's Corp.**.................. 9,922,500
------------
21,915,000
------------
Retail -- Specialty Stores (5.46%)
200,000 CVS Corp. ...................... 9,500,000
180,000 Home Depot, Inc. ............... 11,205,000
300,000 Walgreen Company................ 8,475,000
------------
29,180,000
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
--------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
Semiconductors (3.39%)
50,000 Intel Corp. .................... $ 5,956,250
300,000 Xilinx, Inc.**.................. 12,168,750
------------
18,125,000
------------
Technology (4.29%)
150,000 Motorola, Inc. ................. 10,987,500
120,000 Texas Instruments............... 11,910,000
------------
22,897,500
------------
Telecommunications -- Services and Equipment
(6.24%)
150,000 AT&T Corp. ..................... 11,971,875
100,000 Lucent Technologies............. 10,775,000
170,000 Northern Telecom Limited........ 10,561,250
------------
33,308,125
------------
Total Common Stocks............. 531,931,188
------------
MUTUAL FUNDS (0.27%):
1,415,253 Government Assets Fund T Shares,
4.76%*.......................... 1,415,253
------------
Total Investments in Securities
(99.88%)
(Cost -- $322,264,242).......... $533,346,441
Other Assets & Liabilities
(0.12%)......................... 664,289
------------
NET ASSETS (100.00%)............ $534,010,730
============
</TABLE>
- ---------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation............... $216,101,051
Unrealized Depreciation............... $ (5,018,852)
------------
Net Unrealized Appreciation........... $211,082,199
============
</TABLE>
* Rate shown is as of March 31, 1999.
** Represents non-income producing securities.
See notes to financial statements.
-38-
<PAGE> 41
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
THE VINTAGE AGGRESSIVE GROWTH FUND*
The Vintage Aggressive Growth Fund focuses on a broad range of available growth
companies in the medium to larger capitalization sectors. Historically, smaller
to medium size companies have acted as an excellent asset allocation complement
to the largest capitalization companies. For the past several years, smaller to
medium size companies have lagged overall market indices performance as
investors have concentrated their holdings in the largest, most powerful
market-share entities. The Vintage Aggressive Growth Fund's performance has
reflected this overall market posture, providing solid returns compared to other
funds with similar investment objectives.
For the year ended March 31, 1999, the Fund produced a total return after
operating expenses of 9.85 percent**.
LOOKING FORWARD
We expect that manager sentiment will likely continue to favor the largest,
most-liquid market names. Foreign economic troubles worried the markets in past
quarters, but as these troubles are resolved, the types of companies favored by
the markets may evolve. The ability to identify fundamentally sound, mid-cap
companies with a strong story to tell will be key to success in the coming
months.
As of March 31, 1999, the Fund's top five holdings were: Cisco Systems (3.27% of
the portfolio's assets), Pfizer, Inc. (2.97%), Microsoft (2.95%), Kansas City
Southern (2.81%) and Lowe's (2.59%)***.
<TABLE>
<CAPTION>
VINTAGE AGGRESSIVE NASDAQ COMPOSITE S&P MIDCAP 400
GROWTH FUND S&P 500 STOCK INDEX INDEX STOCK INDEX
------------------ ------------------- ---------------- --------------
<S> <C> <C> <C> <C>
9/29/95 10000 10000 10000 10000
3/31/96 10910 11182 10744 10855
9/30/96 11913 12042 11983 11496
3/31/97 11934 13396 11943 12011
9/30/97 15996 16910 16521 15989
3/31/98 17522 19821 18032 17895
9/30/98 15263 18444 16638 14980
3/31/99 19248 23483 24177 17975
</TABLE>
- -------------------
* Small-cap companies typically carry additional risk since smaller companies
generally have a higher risk of failure and, by definition are not as
well-established as blue-chip companies. Historically, small-company stocks
have experienced a greater degree of market volatility than stocks on
average.
** Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed,
may be worth more or less than their original cost.
*** The composition of the Fund's holdings is subject to change.
The performance of the Vintage Aggressive Growth Fund is measured against the
S&P 500 Stock Index, the NASDAQ Composite Index and the S&P Mid Cap 400 Stock
Index, which represent the performance of the stock market as a whole,
small-capitalization stocks and small- to mid-sized companies respectively. The
indices are unmanaged and do not reflect the deduction of expenses associated
with a mutual fund, such as investment management fees. The Fund's performance
reflects the deduction of fees for these value-added services.
-39-
<PAGE> 42
VINTAGE MUTUAL FUNDS, Inc.
AGGRESSIVE GROWTH
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (97.38%):
Advertising (0.99%)
15,000 Omnicom Group.................... $ 1,199,062
------------
Automotive Parts & Equipment (0.71%)
20,000 Federal Mogul Corp. ............. 860,000
------------
Banking (4.62%)
70,000 Bank Of New York Co., Inc. ...... 2,515,625
15,000 Firstar Corp. ................... 1,342,500
50,000 Wells Fargo Company.............. 1,753,125
------------
5,611,250
------------
Chemicals (2.60%)
32,000 Air Products & Chemicals......... 1,096,000
45,000 Monsanto Co. .................... 2,067,187
------------
3,163,187
------------
Computer Hardware (10.77%)
36,250 Cisco Systems, Inc. ............. 3,971,641
61,000 Compaq Computer Corp. ........... 1,932,937
25,000 Gateway 2000, Inc.**............. 1,714,063
14,000 IBM.............................. 2,481,500
10,000 Lexmark International Group**.... 1,117,500
15,000 Sun Microsystems, Inc.**......... 1,874,062
------------
13,091,703
------------
Computer -- Software and Peripheral (5.07%)
40,000 Microsoft Corporation**.......... 3,585,000
22,500 Network Associates Inc.**........ 690,469
20,000 Synopsys**....................... 1,075,000
10,000 Veritas Software Corp. .......... 807,500
------------
6,157,969
------------
Consumer Goods & Services (0.64%)
8,000 Procter & Gamble Co. ............ 783,500
------------
Containers & Packaging (1.31%)
27,800 Avery Dennison Corp. ............ 1,598,500
-----------
Diversified (3.70%)
60,000 Kansas City Southern Inds........ 3,420,000
15,000 Tyco International, Ltd. ........ 1,076,250
------------
4,496,250
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
Electrical & Electronic (1.00%)
25,000 Solectron Corp.**................ $ 1,214,062
------------
Entertainment (2.12%)
50,000 Mattel........................... 1,243,750
26,700 Univision Communications**....... 1,335,000
------------
2,578,750
------------
Financial Services (8.94%)
46,000 Assoc. First Capital "A"......... 2,070,000
30,000 Equitable Cos., Inc. ............ 2,100,000
16,000 Fannie Mae....................... 1,108,000
45,000 Household International.......... 2,053,125
58,725 MBNA Corp. ...................... 1,402,059
10,000 Morgan Stanley Dean Witter &
Co. ............................. 999,375
40,000 Southwest Securities Group....... 1,130,000
------------
10,862,559
------------
Food -- Retail (1.48%)
35,000 Safeway, Inc.**.................. 1,795,938
------------
Food -- Wholesale Distributor (1.40%)
36,500 U.S. Foodservice**............... 1,697,250
------------
Health Care Products and Services (4.05%)
40,000 Cardinal Health, Inc. ........... 2,640,000
75,000 Healthsouth Corp.**.............. 778,125
33,000 Sunrise Assisted Living,
Inc.**........................... 1,503,563
------------
4,921,688
------------
Home Furnishings (1.95%)
50,000 Newell Rubbermaid, Inc. ......... 2,375,000
------------
Industrial Goods & Services (0.58%)
20,000 Fastenal Co. .................... 701,250
------------
Insurance (1.19%)
39,000 Allstate Corp. .................. 1,445,438
------------
Medical Equipment & Supplies (2.94%)
13,000 Bausch & Lomb, Inc. ............. 845,000
30,000 Medtronic, Inc. ................. 2,152,500
30,000 Omnicare, Inc. .................. 571,875
------------
3,569,375
------------
</TABLE>
- -------------------
** Represents non-income producing securities.
See notes to financial statements.
-40-
<PAGE> 43
VINTAGE MUTUAL FUNDS, Inc.
AGGRESSIVE GROWTH (CONTINUED)
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 1999
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
Medical Instruments (2.32%)
40,500 Elan Corp. ADR**................. $ 2,824,875
------------
Newspaper & Publishing (1.05%)
45,000 New York Times Co. .............. 1,282,500
------------
Oil & Gas Exploration Products & Services (3.51%)
20,000 Enron Corp. ..................... 1,285,000
20,000 Halliburton Co. ................. 770,000
7,000 Schlumberger, Ltd. .............. 421,313
45,300 Williams Co. .................... 1,789,350
------------
4,265,663
------------
Pharmaceuticals (7.85%)
20,000 Lilly (Eli) & Co. ............... 1,697,500
26,000 Pfizer, Inc. .................... 3,607,500
24,000 Schering-Plough Corp. ........... 1,327,500
30,000 Warner Lambert Co. .............. 1,985,625
21,000 Watson Pharmaceutical Inc.**..... 926,625
------------
9,544,750
------------
Printing & Publishing (1.30%)
25,000 Gannett, Inc. ................... 1,575,000
------------
Resorts and Entertainment (1.82%)
45,500 Carnival Cruise Lines............ 2,209,594
------------
Retail Stores / Catalog (2.34%)
60,400 Men's Wearhouse, Inc. ........... 1,744,050
30,000 Office Depot Inc.**.............. 1,104,375
------------
2,848,425
------------
Retail -- General Merchandise (1.87%)
32,100 Kohl's Corp. .................... 2,275,088
------------
Retail -- Specialty Stores (8.06%)
42,000 CVS Corp. ....................... 1,995,000
120,000 General Nutrition Cos.**......... 1,680,000
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PAR VALUE DESCRIPTION VALUE
- --------- ----------- -----
<C> <S> <C>
COMMON STOCKS (CONTINUED):
52,000 Lowe's Cos....................... $ 3,146,000
90,750 Staples, Inc. ................... 2,983,406
------------
9,804,406
------------
Semiconductors (0.98%)
10,000 Intel Corporation................ 1,191,250
------------
Technology (3.57%)
42,700 Computer Sciences Corp. ......... 2,356,506
20,000 Texas Instruments................ 1,985,000
------------
4,341,506
------------
Telecommunications Services & Equipment (6.24%)
32,000 AT&T Corp. ...................... 2,554,000
20,648 Lucent Technologies.............. 2,224,822
10,000 MCI Worldcom, Inc.**............. 885,625
31,000 Northern Telecom Limited......... 1,925,875
------------
7,590,322
------------
Wholesale Distribution (0.41%)
85,000 Brightpoint, Inc.**.............. 502,031
------------
Total Common Stocks.............. 118,378,141
------------
MUTUAL FUNDS (1.70%):
2,062,439 Government Assets Fund
T Shares, 4.76%*................. 2,062,439
------------
Total Investments in Securities
(99.08%)
(Cost $92,676,608)............... $120,440,580
Other Assets & Liabilities
(0.92%).......................... 1,111,450
------------
NET ASSETS (100.00%)............. $121,552,030
============
</TABLE>
- -------------------
(a) Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized Appreciation.................. $32,574,141
Unrealized Depreciation.................. $(4,810,169)
-----------
Net Unrealized Appreciation.............. $27,763,972
===========
</TABLE>
* Rate shown is as of March 31, 1999.
** Represents non-income producing securities.
See notes to financial statements.
-41-
<PAGE> 44
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1999
<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 $129,241,013 $122,312,847 $44,728,931 $55,843,870 $21,812,186
Repurchase agreements 21,446,040 14,613,372 -- -- --
------------ ------------ ----------- ----------- -----------
Total Investments (Cost $150,687,053;
$136,926,219; $44,728,931; $55,609,610;
$21,663,431) 150,687,053 136,926,219 44,728,931 55,843,870 21,812,186
Cash -- -- 14,195 -- --
Interest and dividends receivable 2,919 1,332,683 328,724 747,103 306,268
Receivable from brokers for investments sold -- -- 900,000 1,018,222 --
Receivable for capital shares issued 3,193 -- -- 17,813 431
Prepaid expenses -- 436 -- -- --
------------ ------------ ----------- ----------- -----------
Total Assets 150,693,165 138,259,338 45,971,850 57,627,008 22,118,885
------------ ------------ ----------- ----------- -----------
LIABILITIES:
Dividends payable 546,709 488,881 94,898 256,077 114,100
Payable to brokers for investments purchased -- 1,526,128 595,000 1,295,398 --
Payable for capital shares redeemed -- -- -- -- --
Accrued expenses and other payables:
Investment Advisory fees 46,440 43,140 14,214 23,689 10,249
Administration fees 27,864 25,884 4,467 12,319 4,846
Accounting fees 3,981 3,698 1,220 1,421 559
Distribution fees -- 86,291 2,025 -- --
Servicing fees -- 66,393 10,818 -- --
Other 62,047 -- 1,016 32,889 5,631
------------ ------------ ----------- ----------- -----------
Total Liabilities 687,041 2,240,415 723,658 1,621,793 135,385
------------ ------------ ----------- ----------- -----------
Net Assets $150,006,124 $136,018,923 $45,248,192 $56,005,215 $21,983,500
============ ============ =========== =========== ===========
</TABLE>
See notes to financial statements.
-42-
<PAGE> 45
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 1999
<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 $150,007,046 $136,018,923 $45,248,192 $56,095,638 $21,839,710
Accumulated undistributed (distributions in
excess of) net investment income 15,445 -- -- (156,105) --
Net unrealized appreciation on investments -- -- -- 234,260 148,755
Accumulated undistributed net realized gains
(losses) on investment transactions (16,367) -- -- (168,578) (4,965)
------------ ------------ ----------- ----------- -----------
Net Assets $150,006,124 $136,018,923 $45,248,192 $56,005,215 $21,983,500
============ ============ =========== =========== ===========
Capital Shares Outstanding 5,598,261 2,224,854
=========== ===========
Net asset value -- offering and redemption
price per share $ 10.00 $ 9.88
=========== ===========
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $ 77,342,646 $ 7,894,453
============ ===========
Shares outstanding, $.001 par value 77,342,646 7,894,453
============ ===========
Net asset value -- offering and redemption
price per share $ 1.00 $ 1.00
============ ===========
PRICING OF S2 SHARES
Net assets applicable to S2 Shares outstanding $ 8,251,867
============
Shares outstanding, $.001 par value 8,251,867
============
Net asset value -- offering and redemption
price per share $ 1.00
============
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $150,006,124 $ 33,673,183 $14,949,097
============ ============ ===========
Shares outstanding, $.001 par value 150,022,637 33,673,183 14,949,097
============ ============ ===========
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 $ 16,751,227 $22,404,642
============ ===========
Shares outstanding, $.001 par value 16,751,227 22,404,642
============ ===========
Net asset value -- offering and redemption
price per share $ 1.00 $ 1.00
============ ===========
</TABLE>
See notes to financial statements.
-43-
<PAGE> 46
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 1999
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
------------ ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $100,767,221 $50,505,033 $85,793,179 $533,346,441 $120,440,580
Repurchase agreements -- -- -- -- --
------------ ----------- ----------- ------------ ------------
Total Investments (Cost $100,578,833;
$48,922,077; $68,771,047; $322,264,242;
$92,676,608) 100,767,221 50,505,033 85,793,179 533,346,441 120,440,580
Cash -- -- -- -- --
Interest and dividends receivable 1,285,010 732,323 445,623 396,497 69,419
Receivable from brokers for investments sold 527,663 -- -- 2,329,930 1,196,248
Receivable for capital shares issued -- -- 83,599 208,652 58,160
Prepaid expenses -- -- -- -- --
------------ ----------- ----------- ------------ ------------
Total Assets 102,579,894 51,237,356 86,322,401 536,281,520 121,764,407
------------ ----------- ----------- ------------ ------------
LIABILITIES:
Dividends payable 530,924 177,004 294,207 -- --
Payable to brokers for investments purchased 1,599,704 1,041,112 451,199 1,525,100 --
Payable for capital shares redeemed -- -- 10 12,724 --
Accrued expenses and other payables:
Investment Advisory fees 51,206 21,111 54,135 340,885 96,621
Administration fees 22,190 10,978 18,767 118,174 26,444
Accounting fees 2,560 1,267 2,165 13,635 3,051
Distribution fees -- -- -- -- --
Servicing fees -- -- -- 53,823 --
Other 32,735 35,791 77,802 206,449 86,261
------------ ----------- ----------- ------------ ------------
Total Liabilities 2,239,319 1,287,263 898,285 2,270,790 212,377
------------ ----------- ----------- ------------ ------------
Net Assets $100,340,575 $49,950,093 $85,424,116 $534,010,730 $121,552,030
============ =========== =========== ============ ============
</TABLE>
See notes to financial statements.
-44-
<PAGE> 47
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 1999
<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 $102,293,343 $48,218,339 $66,284,693 $284,266,967 $ 87,400,988
Accumulated undistributed (distributions in
excess of) net investment income (355,692) 7 -- -- --
Net unrealized appreciation on investments 188,388 1,582,956 17,022,132 211,082,199 27,763,972
Accumulated undistributed net realized gains
(losses) on investment transactions (1,785,464) 148,791 2,117,291 38,661,564 6,387,070
------------ ----------- ----------- ------------ ------------
Net Assets $100,340,575 $49,950,093 $85,424,116 $534,010,730 $121,552,030
============ =========== =========== ============ ============
Capital Shares Outstanding 10,055,051 4,681,005 5,336,766 6,894,244
============ =========== =========== ============
Net asset value -- offering and redemption
price per share $ 9.98 $ 10.67 $ 16.01 $ 17.63
============ =========== =========== ============
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $253,592,295
============
Shares outstanding, $.001 par value 11,073,127
============
Net asset value -- offering and redemption
price per share $ 22.90
============
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $280,418,435
============
Shares outstanding, $.001 par value 12,225,294
============
Net asset value--offering and redemption price
per share $ 22.94
============
</TABLE>
See notes to financial statements.
-45-
<PAGE> 48
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $7,786,771 $7,152,848 $1,429,144 $3,096,038 $1,176,975
Dividend income
---------- ---------- ---------- ---------- ----------
Total Income 7,786,771 7,152,848 1,429,144 3,096,038 1,176,975
---------- ---------- ---------- ---------- ----------
EXPENSES: (NOTE 5)
Investment advisory fees 596,911 463,497 141,640 308,131 99,692
Administration fees 313,378 224,371 67,037 135,576 47,127
Distribution and shareholder service fees S Shares -- 515,402 29,315 -- --
Distribution and shareholder service fees S2 Shares -- 34,488 -- -- --
Distribution and shareholder service fees T Shares -- 42,223 19,087 -- --
Custody fees 16,491 73,669 39,971 7,770 11,066
Accounting fees 44,768 39,728 12,140 14,796 4,997
Legal fees 3,999 5,261 1,328 1,444 356
Audit fees 21,913 14,430 7,365 6,706 1,477
Directors' fees 14,718 9,979 4,038 5,114 1,272
Transfer agent fees 77,493 49,212 27,056 32,103 8,013
Registration and filing fees 13,805 10,043 6,789 12,841 4,783
Printing fees 23,128 14,851 6,495 7,694 2,017
Other 14,458 4,255 5,005 15,299 5,741
---------- ---------- ---------- ---------- ----------
Total Expenses 1,141,062 1,501,409 367,266 547,474 186,541
Less: Expenses voluntarily reduced/waived (52,738) -- (28,504) -- --
---------- ---------- ---------- ---------- ----------
Net Expenses 1,088,324 1,501,409 338,762 547,474 186,541
---------- ---------- ---------- ---------- ----------
Net Investment Income (Loss) 6,698,447 5,651,439 1,090,382 2,548,564 990,434
---------- ---------- ---------- ---------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains from investment transactions -- -- -- 41,156 9,339
Net change in unrealized appreciation (depreciation)
from investments -- -- -- (40,683) (26,406)
---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains (losses) from
investments -- -- -- 473 (17,067)
---------- ---------- ---------- ---------- ----------
Change in net assets resulting from operations $6,698,447 $5,651,439 $1,090,382 $2,549,037 $ 973,367
========== ========== ========== ========== ==========
</TABLE>
See notes to financial statements.
-46-
<PAGE> 49
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
------ --------- -------- ------ ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $6,190,384 $2,371,167 $1,599,357 $ 214,449 $ 98,444
Dividend income
399,296 4,894,716 687,617
---------- ---------- ---------- ----------- -----------
Total Income 6,190,384 2,371,167 1,998,653 5,109,165 786,061
---------- ---------- ---------- ----------- -----------
EXPENSES: (NOTE 5)
Investment advisory fees 569,326 298,192 518,744 3,608,411 1,019,527
Administration fees 246,708 131,046 179,832 1,250,920 279,029
Distribution and shareholder service fees S Shares -- -- -- 531,412 --
Distribution and shareholder service fees S2 Shares -- -- -- -- --
Distribution and shareholder service fees T Shares -- -- -- -- --
Custody fees 9,100 6,672 14,191 26,458 12,363
Accounting fees 27,745 14,017 19,790 143,827 31,256
Legal fees 2,530 1,455 2,367 13,702 3,586
Audit fees 13,745 7,433 11,993 67,579 17,753
Directors' fees 8,962 5,123 8,256 47,127 12,404
Transfer agent fees 28,589 26,460 79,030 214,668 95,538
Registration and filing fees 13,330 12,379 19,132 45,819 22,555
Printing fees 13,796 7,941 12,521 70,688 18,511
Other 24,684 15,357 18,730 36,868 10,888
---------- ---------- ---------- ----------- -----------
Total Expenses 958,515 526,075 884,586 6,057,479 1,523,410
Less: Expenses voluntarily reduced/waived -- (51,228) -- -- --
---------- ---------- ---------- ----------- -----------
Net Expenses 958,515 474,847 884,586 6,057,479 1,523,410
---------- ---------- ---------- ----------- -----------
Net Investment Income (Loss) 5,231,869 1,896,320 1,114,067 (948,314) (737,349)
---------- ---------- ---------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains from investment transactions 646,775 219,081 3,463,631 56,474,170 11,696,663
Net change in unrealized appreciation (depreciation)
from investments (1,201,868) 177,852 4,347,436 17,129,688 (9,473)
---------- ---------- ---------- ----------- -----------
Net realized and unrealized gains (losses) from
investments (555,093) 396,933 7,811,067 73,603,858 11,687,190
---------- ---------- ---------- ----------- -----------
Change in net assets resulting from operations $4,676,776 $2,293,253 $8,925,134 $72,655,544 $10,949,841
========== ========== ========== =========== ===========
</TABLE>
See notes to financial statements.
-47-
<PAGE> 50
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GOVERNMENT ASSETS FUND LIQUID ASSETS FUND
-------------------------------- -------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 JUNE 30, 1997
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 6,698,447 $ 7,354,496 $ 5,651,439 $ 3,193,749 $ 7,630,247
Net realized gains/(losses)
from investment transactions -- -- -- -- --
Net change in unrealized
appreciation/(depreciation)
from investments -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Change in net assets resulting
from operations 6,698,447 7,354,496 5,651,439 3,193,749 7,630,247
----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares -- -- -- -- --
S Shares -- -- (3,238,515) (2,109,726) (7,315,154)
S2 Shares -- -- (372,466) (87,386) (7,481)
T Shares (6,695,405) (7,258,184) (1,276,647) (800,589) (286,410)
I Shares -- -- (763,811) (196,048) (21,202)
Select -- -- -- -- --
Institutional -- -- -- -- --
From net realized gains
Capital Shares -- -- -- -- --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
Select -- -- -- -- --
Institutional -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (6,695,405) (7,258,184) (5,651,439) (3,193,749) (7,630,247)
----------- ----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements.
-48-
<PAGE> 51
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT ASSETS FUND LIQUID ASSETS FUND
-------------------------------- -------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 JUNE 30, 1997
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares -- -- -- -- --
S Shares -- -- 506,680,611 385,529,798 808,459,153
S2 Shares -- -- 148,619,946 20,606,810 2,401,469
T Shares 588,440,372 556,870,585 193,368,939 159,478,295 72,574,682
I Shares -- -- 64,949,688 22,152,126 3,414,238
Select -- -- -- -- --
Institutional -- -- -- -- --
FUND REORGANIZATIONS:
Capital Shares -- -- -- -- --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
Select -- -- -- -- --
Institutional -- -- -- -- --
REINVESTMENTS:
Capital Shares -- -- -- -- --
S Shares -- -- 23,684 436 14,510
T Shares 1,516,951 1,626,697 212,019 2,153 --
I Shares -- -- 115,123 10,464 12,729
Select -- -- -- -- --
Institutional -- -- -- -- --
REDEMPTIONS:
Capital Shares -- -- -- -- --
S Shares -- -- (498,876,025) (376,678,219) (927,444,118)
S2 Shares -- -- (145,821,496) (16,926,224) (628,638)
T Shares (595,083,750) (562,162,290) (176,055,191) (161,192,225) (54,715,488)
I Shares -- -- (62,042,443) (10,790,034) (1,070,664)
Select -- -- -- -- --
Institutional -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Change in net assets from
capital transactions (5,126,427) (3,665,008) 31,174,855 22,193,380 (96,982,127)
------------ ------------ ------------ ------------ ------------
Change in net assets (5,123,385) (3,568,696) 31,174,855 22,193,380 (96,982,127)
NET ASSETS:
Beginning of period 155,129,509 158,698,205 104,844,068 82,650,688 179,632,815
------------ ------------ ------------ ------------ ------------
End of period $150,006,124 $155,129,509 $136,018,923 $104,844,068 $ 82,650,688
============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
-49-
<PAGE> 52
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT ASSETS FUND LIQUID ASSETS FUND
-------------------------------- -------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 JUNE 30, 1997
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
Capital Shares -- -- -- -- --
S Shares -- -- 506,680,611 385,529,798 808,459,153
S2 Shares -- -- 148,619,946 20,606,810 2,401,469
T Shares 588,440,372 556,870,585 193,368,939 159,478,295 72,574,682
I Shares -- -- 64,949,688 22,152,126 3,414,238
Select -- -- -- -- --
Institutional -- -- -- -- --
FUND REORGANIZATIONS:
Capital Shares -- -- -- -- --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
Select -- -- -- -- --
Institutional -- -- -- -- --
REINVESTMENTS:
Capital Shares -- -- -- -- --
S Shares -- -- 23,684 436 14,510
T Shares 1,516,951 1,626,697 212,019 2,153 --
I Shares -- -- 115,123 10,464 12,729
Select -- -- -- -- --
Institutional -- -- -- -- --
REDEMPTIONS:
Capital Shares -- -- -- -- --
S Shares -- -- (498,876,025) (376,678,219) (927,444,118)
S2 Shares -- -- (145,821,496) (16,926,224) (628,638)
T Shares (595,083,750) (562,162,290) (176,055,191) (161,192,225) (54,715,488)
I Shares -- -- (62,042,443) (10,790,034) (1,070,664)
Select -- -- -- -- --
Institutional -- -- -- -- --
------------- ------------- ------------- ------------- -------------
Change in shares (5,126,427) (3,665,008) 31,174,855 22,193,380 (96,982,127)
============= ============= ============= ============= =============
</TABLE>
See notes to financial statements.
-50-
<PAGE> 53
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL ASSETS FUND
-------------------------------------------------
YEAR PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 JUNE 30, 1997
-------------- -------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,090,382 $ 755,733 $ 632,743
Net realized gains/(losses) from investment transactions -- -- --
Net change in unrealized appreciation/(depreciation) from
investments -- -- --
----------- --------- ---------
Change in net assets resulting from operations $ 1,090,382 $ 755,733 $ 632,743
----------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares -- -- --
S Shares (176,946) (121,938) (248,217)
S2 Shares -- -- --
T Shares (338,594) (547,759) (384,266)
I Shares (574,842) (86,036) (260)
Select -- -- --
Institutional -- -- --
From net realized gains
Capital Shares -- -- --
S Shares -- -- --
T Shares -- -- --
Select -- -- --
Institutional -- -- --
----------- --------- ---------
Change in net assets from shareholder distributions (1,090,382) (755,733) (632,743)
----------- --------- ---------
</TABLE>
See notes to financial statements.
-51-
<PAGE> 54
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL ASSETS FUND
-------------------------------------------------
YEAR PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 JUNE 30, 1997
-------------- -------------- -------------
<S> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares -- -- --
S Shares 39,656,976 21,891,470 42,791,777
S2 Shares -- -- --
T Shares 44,999,698 70,995,535 69,522,222
I Shares 84,067,686 26,681,323 126,951
Select -- -- --
Institutional -- -- --
FUND REORGANIZATIONS:
Capital Shares -- -- --
S Shares -- -- --
T Shares -- -- --
Select -- -- --
Institutional -- -- --
REINVESTMENTS:
Capital Shares -- -- --
S Shares -- -- --
T Shares 5,553 13 --
I Shares 8,549 1,122 260
Select -- -- --
Institutional -- -- --
REDEMPTIONS:
Capital Shares -- -- --
S Shares (38,864,113) (19,453,574) (48,273,846)
S2 Shares -- -- --
T Shares (42,060,727) (84,027,361) (44,485,836)
I Shares (81,681,844) (6,679,405) (120,000)
Select -- -- --
Institutional -- -- --
----------- ----------- -----------
Change in net assets from capital transactions 6,131,778 9,409,123 19,561,528
----------- ----------- -----------
Change in net assets 6,131,778 9,409,123 19,561,528
NET ASSETS:
Beginning of period 39,116,414 29,707,291 10,145,763
----------- ----------- -----------
End of period $45,248,192 $39,116,414 $29,707,291
=========== =========== ===========
</TABLE>
See notes to financial statements.
-52-
<PAGE> 55
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL ASSETS FUND
-------------------------------------------------
YEAR PERIOD YEAR
ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 JUNE 30, 1997
-------------- -------------- -------------
<S> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
Capital Shares -- -- --
S Shares 39,656,976 21,891,470 42,791,777
S2 Shares -- -- --
T Shares 44,999,698 70,995,535 69,522,222
I Shares 84,067,686 26,681,323 126,951
Select -- -- --
Institutional -- -- --
FUND REORGANIZATIONS:
Capital Shares -- -- --
S Shares -- -- --
T Shares -- -- --
Select -- -- --
Institutional -- -- --
REINVESTMENTS:
Capital Shares -- -- --
S Shares -- -- --
T Shares 5,553 13 --
I Shares 8,549 1,122 260
Select -- -- --
Institutional -- -- --
REDEMPTIONS:
Capital Shares -- -- --
S Shares (38,864,113) (19,453,574) (48,273,846)
S2 Shares -- -- --
T Shares (42,060,727) (84,027,361) (44,485,836)
I Shares (81,681,844) (6,679,405) (120,000)
Select -- -- --
Institutional -- -- --
------------- ------------- -------------
Change in shares 6,131,778 9,409,123 19,561,528
============= ============= =============
</TABLE>
See notes to financial statements.
-53-
<PAGE> 56
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
LIMITED TERM BOND FUND BOND FUND
-------------------------------- --------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 APRIL 30, 1997
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 2,548,564 $ 1,858,371 $ 990,434 $ 451,712 $ 499,347
Net realized gains/(losses)
from investment transactions 41,156 366,075 9,339 121,574 (992)
Net change in unrealized
appreciation/(depreciation)
from investments (40,683) 1,062,800 (26,406) 114,558 40,539
----------- ----------- ----------- ----------- -----------
Change in net assets resulting
from operations 2,549,037 3,287,246 973,367 687,844 538,894
----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (2,542,863) (2,051,808)* (997,929) (122,963) --
S Shares -- -- -- -- --
S2 Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- (187,461) (225,559)
Institutional -- -- -- (201,889) (272,474)
From net realized gains Capital
Shares -- -- (45,854) -- --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
Select -- -- -- (50,069) (3,670)
Institutional -- -- -- (38,735) (3,820)
----------- ----------- ----------- ----------- -----------
Change in net assets from
shareholder distributions (2,542,863) (2,051,808) (1,043,783) (601,117) (505,523)
----------- ----------- ----------- ----------- -----------
</TABLE>
- -------------------
* Includes $161,806 of distribution in excess of net investment income for the
Limited Term Bond Fund for the year ended March 31, 1998.
See notes to financial statements.
-54-
<PAGE> 57
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
LIMITED TERM BOND FUND BOND FUND
-------------------------------- --------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 APRIL 30, 1997
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 33,194,746 9,490,890 18,750,018 -- --
S Shares -- -- -- -- --
S2 Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- 652,405 527,650
Institutional -- -- -- 429,371 284,210
FUND REORGANIZATIONS:
Capital Shares -- -- -- 15,517,298 --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
Select -- -- -- (3,115,585) --
Institutional -- -- -- (1,970,210) --
REINVESTMENTS:
Capital Shares 1,840,120 1,509,814 648,234 -- --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- 217,433 223,068
Institutional -- -- -- 223,835 235,744
REDEMPTIONS:
Capital Shares (16,812,474) (13,294,302) (4,557,532) -- --
S Shares -- -- -- -- --
S2 Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- (9,246,996) (1,217,163)
Institutional -- -- -- (3,141,350) (531,184)
----------- ----------- ----------- ----------- -----------
Change in net assets from
capital transactions 18,222,392 (2,293,598) 14,840,720 (433,799) (477,675)
----------- ----------- ----------- ----------- -----------
Change in net assets 18,228,566 (1,058,160) 14,770,304 (347,072) (444,304)
NET ASSETS:
Beginning of period 37,776,649 38,834,809 7,213,196 7,560,268 8,004,572
----------- ----------- ----------- ----------- -----------
End of period $56,005,215 $37,776,649 $21,983,500 $ 7,213,196 $ 7,560,268
=========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
-55-
<PAGE> 58
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
LIMITED TERM BOND FUND BOND FUND
------------------------------- ------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 APRIL 30, 1997
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
Issued:
Capital Shares 3,300,867 1,000,073 1,883,976 -- --
S Shares -- -- -- -- --
S2 Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- 63,707 82,098
Institutional -- -- -- 42,851 57,305
FUND REORGANIZATIONS:
Capital Shares -- -- -- 1,548,820 --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
Select -- -- -- (310,918) --
Institutional -- -- -- (196,834) --
REINVESTMENTS:
Capital Shares 182,981 104,463 65,135 -- --
S Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- 21,694 22,804
Institutional -- -- -- 22,330 24,120
REDEMPTIONS:
Capital Shares (1,667,952) (1,331,742) (455,900) -- --
S Shares -- -- -- -- --
S2 Shares -- -- -- -- --
T Shares -- -- -- -- --
I Shares -- -- -- -- --
Select -- -- -- (917,504) (151,349)
Institutional -- -- -- (312,140) (83,488)
----------- ------------ ----------- ----------- -----------
Change in shares 1,815,896 (227,206) 1,493,211 (37,994) (48,510)
=========== ============ =========== =========== ===========
</TABLE>
See notes to financial statements.
-56-
<PAGE> 59
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
INCOME FUND MUNICIPAL BOND FUND
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 5,231,869 $ 5,015,283 $ 1,896,320 $ 1,762,250
Net realized gains/(losses) from investment
transactions 646,775 302,739 219,081 207,244
Net change in unrealized
appreciation/(depreciation) from investments (1,201,868) 3,443,587 177,852 1,583,747
------------ ------------ ----------- -----------
Change in net assets resulting from operations 4,676,776 8,761,609 2,293,253 3,553,241
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (5,331,510)** (5,457,783)*** (1,896,049) (1,789,100)
S Shares -- -- -- --
S2 Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
From net realized gains
Capital Shares -- -- (70,290) (62,080)
S Shares -- -- -- --
T Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
------------ ------------ ----------- -----------
Change in net assets from shareholder
distributions (5,331,510) (5,457,783) (1,966,339) (1,851,180)
------------ ------------ ----------- -----------
</TABLE>
- -------------------
** Includes $99,641 of distribution in excess of net investment income for the
Income Fund for the year ended March 31, 1999.
*** Includes $256,051 of distribution in excess of net investment income for the
Income Fund for the year ended March 31, 1998.
See notes to financial statements.
-57-
<PAGE> 60
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
INCOME FUND MUNICIPAL BOND FUND
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 27,829,387 30,479,946 10,367,989 10,850,108
S Shares -- -- -- --
S2 Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
FUND REORGANIZATIONS:
Capital Shares -- -- -- --
S Shares -- -- -- --
T Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
REINVESTMENTS:
Capital Shares 707,512 635,925 297,011 259,480
S Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
REDEMPTIONS:
Capital Shares (32,145,684) (21,846,804) (9,323,485) (9,693,892)
S Shares -- -- -- --
S2 Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
------------ ------------ ----------- -----------
Change in net assets from capital transactions (3,608,785) 9,269,067 1,341,515 1,415,696
------------ ------------ ----------- -----------
Change in net assets (4,263,519) 12,572,893 1,668,429 3,117,757
NET ASSETS:
Beginning of period 104,604,094 92,031,201 48,281,664 45,163,907
------------ ------------ ----------- -----------
End of period $100,340,575 $104,604,094 $49,950,093 $48,281,664
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-58-
<PAGE> 61
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
INCOME FUND MUNICIPAL BOND FUND
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 2,745,993 3,066,800 970,809 1,036,577
S Shares -- -- -- --
S2 Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
FUND REORGANIZATIONS:
Capital Shares -- -- -- --
S Shares -- -- -- --
T Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
REINVESTMENTS:
Capital Shares 69,812 58,323 27,811 24,716
S Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
REDEMPTIONS:
Capital Shares (3,182,951) (2,192,247) (870,874) (927,518)
S Shares -- -- -- --
S2 Shares -- -- -- --
T Shares -- -- -- --
I Shares -- -- -- --
Select -- -- -- --
Institutional -- -- -- --
------------ ------------ ----------- -----------
Change in shares (367,146) 932,876 127,746 133,775
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-59-
<PAGE> 62
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND AGGRESSIVE GROWTH FUND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss) $ 1,114,067 $ 712,919 $ (948,314) $ 9,451 $ (737,349) $ (562,852)
Net realized
gains/(losses) from
investment transactions 3,463,631 2,643,723 56,474,170 50,328,151 11,696,663 3,108,596
Net change in unrealized
appreciation/(depreciation)
from investments 4,347,436 9,189,161 17,129,688 94,425,784 (9,473) 24,936,662
----------- ----------- ------------ ------------ ------------ ------------
Change in net assets
resulting from
operations 8,925,134 12,545,803 72,655,544 144,763,386 10,949,841 27,482,406
----------- ----------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income
Capital Shares (1,108,471) (712,919) -- -- -- (19)
S Shares -- -- (59,830) (219,004) -- --
S2 Shares -- -- -- -- -- --
T Shares -- -- (148,763) -- -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
From net realized gains
Capital Shares (2,937,377) (1,216,595) -- -- (6,116,966) (2,433,893)
S Shares -- -- (12,633,245) (52,295,174) -- --
T Shares -- -- (15,888,358) -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
----------- ----------- ------------ ------------ ------------ ------------
Change in net assets from
shareholder
distributions (4,045,848) (1,929,514) (28,730,196) (52,514,178) (6,116,966) (2,433,912)
----------- ----------- ------------ ------------ ------------ ------------
</TABLE>
See notes to financial statements.
-60-
<PAGE> 63
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND AGGRESSIVE GROWTH FUND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL SHARE
TRANSACTIONS:
ISSUED:
Capital Shares 33,056,168 27,268,652 -- 347,358,499 33,773,139 45,786,945
S Shares -- -- 80,875,903 13,371,077 -- --
S2 Shares -- -- -- -- -- --
T Shares -- -- 52,395,875 7,570,830 -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
FUND REORGANIZATIONS:
Capital Shares -- 12,170,101 -- (413,656,502) -- --
S Shares -- -- -- 187,465,229 -- --
T Shares -- -- -- 257,760,576 -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
REINVESTMENTS:
Capital Shares 3,863,015 1,617,767 -- 31,756,386 2,843,899 1,133,752
S Shares -- -- 12,006,072 -- -- --
T Shares -- -- 6,539,800 -- -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
REDEMPTIONS:
Capital Shares (19,777,192) (20,282,085) -- (338,861,274) (21,275,145) (20,005,297)
S Shares -- -- (54,985,567) (13,034,174) -- --
S2 Shares -- -- -- -- -- --
T Shares -- -- (78,764,367) (9,631,207) -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
------------ ------------ ------------ ------------- ------------ ------------
Change in net assets
from capital
transactions 17,141,991 20,774,435 18,067,716 70,099,440 15,341,893 26,915,400
------------ ------------ ------------ ------------- ------------ ------------
Change in net assets 22,021,277 31,390,724 61,993,064 162,348,648 20,174,768 51,963,894
NET ASSETS:
Beginning of period 63,402,839 32,012,115 472,017,666 309,669,018 101,377,262 49,413,368
------------ ------------ ------------ ------------- ------------ ------------
End of period $ 85,424,116 $ 63,402,839 $534,010,730 $ 472,017,666 $121,552,030 $101,377,262
============ ============ ============ ============= ============ ============
</TABLE>
See notes to financial statements.
-61-
<PAGE> 64
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND AGGRESSIVE GROWTH FUND
------------------------------- ------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998 MARCH 31, 1999 MARCH 31, 1998
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 2,178,133 1,997,554 -- 17,757,680 2,025,571 3,076,295
S Shares -- -- 3,783,085 367,993 -- --
S2 Shares -- -- -- -- -- --
T Shares -- -- 2,524,695 285,915 -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
FUND REORGANIZATIONS:
Capital Shares -- 838,161 -- (20,966,465) -- --
S Shares -- -- -- 9,484,771 -- --
T Shares -- -- -- 13,078,523 -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
REINVESTMENTS:
Capital Shares 254,541 73,494 -- 1,696,325 170,565 72,986
S Shares -- -- 590,067 -- -- --
T Shares -- -- 320,512 -- -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
REDEMPTIONS:
Capital Shares (1,307,414) (1,428,642) -- (17,162,795) (1,269,959) (1,334,457)
S Shares -- -- (2,651,754) (505,224) -- --
S2 Shares -- -- -- -- -- --
T Shares -- -- (3,694,248) (290,103) -- --
I Shares -- -- -- -- -- --
Select -- -- -- -- -- --
Institutional -- -- -- -- -- --
------------- ------------- ------------- ------------- ------------- ------------
Change in shares 1,125,260 1,480,567 872,357 3,746,620 926,177 1,814,824
============= ============= ============= ============= ============= ============
</TABLE>
See notes to financial statements.
-62-
<PAGE> 65
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 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
-63-
<PAGE> 66
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
outstanding for the acquired Funds at the close of business on February 13,
1998, were as follows:
<TABLE>
<CAPTION>
NUMBER
ACQUIRED FUND NET ASSETS OF SHARES
- ------------- ---------- ---------
<S> <C> <C>
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
</TABLE>
In exchange for the acquired Funds, the Vintage Mutual Funds, Inc., issued the
following capital stock:
<TABLE>
<CAPTION>
NUMBER
VINTAGE MUTUAL FUNDS, INC. NET ASSETS OF SHARES
- -------------------------- ---------- ---------
<S> <C> <C>
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
</TABLE>
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:
<TABLE>
<CAPTION>
UNREALIZED
ACQUIRED FUND NET ASSETS APPRECIATION
- ------------- ---------- ------------
<S> <C> <C>
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
</TABLE>
In exchange for the acquired Funds, the Vintage Mutual Funds, Inc., issued the
following capital stock:
<TABLE>
<CAPTION>
NUMBER NAV PER
VINTAGE MUTUAL FUNDS, INC. OF SHARES SHARE
-------------------------- --------- -------
<S> <C> <C>
Equity Fund 1,596,829 $19.77
Balanced Fund 838,161 $14.52
Bond Fund 1,041,068 $10.02
</TABLE>
The Government Assets Fund offers two classes of shares. T Shares are normally
offered through trust organizations or others providing shareholder services
such as establishing and maintaining records and accounts for their customers
who invest in T Shares, assisting customers in processing purchase, exchange and
redemption requests, and responding to customers' inquiries regarding their
accounts. S Shares are offered directly or through other broker-dealers. S
Shares accrue daily dividends in the same manner as T Shares except S Shares
bear distribution and/or shareholder administrative servicing fees which T
Shares do not. Differences in class level expenses may affect performance.
Liquid Assets Fund and Municipal Assets Fund offer four and three classes of
shares, respectively. 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.
-64-
<PAGE> 67
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
I Shares may be purchased by individual and institutional investors directly
from the Fund's Distributor. All classes of shares accrue daily dividends in the
same manner 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
-65-
<PAGE> 68
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
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 advisor, Investors Management
Group, ("IMG"), deems creditworthy under guidelines approved by the Fund's Board
of Directors, subject to the seller's agreement to repurchase such securities at
a mutually agreed-upon date and price. An independent custodian must receive
delivery of the underlying securities. The market value of these securities
(including accrued interest) on acquisition date is required to be an amount
equal to 102% of the resale price, and will not be less than 100% of the resale
price over the term of the agreement. The repurchase price generally equals the
price paid plus interest negotiated on the basis of current short-term rates,
which may be more or less than the rate on the underlying portfolio securities.
The seller, under an agreement to repurchase, is required to maintain, with the
Fund's custodian, the value of collateral held pursuant to the agreement at not
less than the repurchase price (including accrued interest). Securities subject
to repurchase agreements are held by the Fund's custodian, another qualified
custodian or in the Federal Reserve/Treasury book-entry system.
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
-66-
<PAGE> 69
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
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. CHANGE IN CERTIFYING ACCOUNTANT:
Vintage Mutual Funds, Inc., (the "Fund") terminated the service of KPMG Peat
Marwick LLP as independent auditors of the Fund on June 9, 1998.
Reports issued by KPMG Peat Marwick LLP on the financial statements of the Fund
have never contained an adverse opinion or a disclaimer of opinion. Reports were
never qualified or modified as to uncertainty, audit scope or accounting
principles. The Fund had no disagreements with KPMG Peat Marwick LLP on any
matter of accounting principle or practices, financial statement disclosure, or
auditing scope or procedure. None of the reportable events listed in Item
304(a)(1)(v) of Regulation S-K occurred with respect to the Fund preceding the
termination of KPMG Peat Marwick LLP.
On June 9, 1998, the Fund's Board of Directors approved the proposal to engage
McGladrey & Pullen, LLP as its independent auditors.
Preceding the engagement of McGladrey & Pullen, LLP, neither the Fund nor anyone
on its behalf consulted McGladrey & Pullen, LLP regarding the application of
accounting principles to a specified completed or contemplated transaction or
the type of audit opinion that might be rendered on the Fund's financial
statements. Also, at no time preceding the engagement of McGladrey & Pullen, LLP
was written or oral advice provided to the Fund that was an important factor
considered by the Fund in
-67-
<PAGE> 70
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
reaching a decision as to any accounting, auditing or financial reporting issue.
4. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the year
ended March 31, 1999, are as follows:
<TABLE>
<CAPTION>
PROCEEDS
PURCHASES FROM SALES
--------- ----------
<S> <C> <C>
Limited Term Bond Fund $ 36,108,277 $ 14,177,356
Bond Fund $ 19,147,501 $ 5,791,580
Income Fund $ 56,271,501 $ 58,524,700
Municipal Bond Fund $ 10,352,345 $ 6,787,815
Balanced Fund $ 49,550,388 $ 32,414,154
Equity Fund $281,393,160 $288,375,486
Aggressive Growth Fund $ 71,972,028 $ 65,518,703
</TABLE>
5. 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:
<TABLE>
<S> <C>
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
</TABLE>
Beginning July 29, 1998, IMG voluntarily limited advisory fees for the
Government Assets Fund to 0.35 percent. Prior to March 1, 1999, the advisory
fees for the Limited Term Bond Fund and the Municipal Bond Fund were 0.60
percent. During the period ended March 1, 1999, Investors Management Group
voluntarily waived advisory fees of $51,228 for the Municipal Bond Fund.
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. Prior to July 29, 1998, the
administration fees were 0.06 percent for the Liquid Assets Fund and Municipal
Assets Fund.
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 administerial, 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 year ended March 31, 1999,
AMCORE Financial, Inc. received $43,222, $19,112, and $494,515 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 Agreement with the Fund, but may receive compensation
under a
-68-
<PAGE> 71
VINTAGE MUTUAL FUNDS, Inc.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1999
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
Advisor and Administrator of the Fund may in its sole discretion make payments
to the Distributor to supplement shareholder fees paid by the Fund up to the
maximum fee approved by the Plan without further notice to shareholders and at
no cost to the Fund.
IMG also serves as the Fund's transfer agent to certain classes of the
Government Assets, Liquid Assets and Municipal Assets Funds, pursuant to a
Transfer Agency Agreement with the Funds and receives a fee for such services.
BISYS Fund Services, Inc., ("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.
6. FEDERAL INCOME TAXES:
For federal income tax purposes, the following Funds have capital loss
carryforwards as of March 31, 1999, which are available to offset future capital
gains, if any:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------ -------
<S> <C> <C>
Government Assets Fund $ 16,000 2001-2002
Limited Term Bond Fund $ 100,000 2004
Income Fund $1,800,000 2002-2005
</TABLE>
7. FEDERAL INCOME TAX INFORMATION:
For the taxable year ended March 31, 1999, the following percentages of income
dividends paid by the Funds qualify for the dividends received deduction
available to corporations:
<TABLE>
<CAPTION>
QUALIFIED
DIVIDEND INCOME
---------------
<S> <C>
Balanced Fund 18.9%
Equity Fund 90.8%
Aggressive Growth Fund 82.6%
</TABLE>
During the year ended March 31, 1999, the Municipal Bond Fund and Municipal
Assets Fund declared $1,966,339 and $1,090,382, respectively, of tax-exempt
income distributions.
-69-
<PAGE> 72
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES: DIVIDENDS & DISTRIBUTIONS:
---------------------------------------------------- -------------------------------------
TOTAL FROM TOTAL
NAV NET NET REALIZED/ FROM FROM NET NET DIVIDENDS
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT REALIZED AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ---------- -------------- ---------- ---------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND "T" SHARES
Year Ended March 31, 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
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
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
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
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
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
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
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
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.
(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.
See notes to financial statements.
-70-
<PAGE> 73
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
- ----------------------------------------------------------------------------------------------------------------
RATIO OF NET
RATIO OF RATIO OF INVEST- RATIO OF INVESTMENT
NAV NET ASSETS EXPENSES TO MENT INCOME EXPENSES INCOME
END TOTAL END OF PERIOD AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE PORTFOLIO
OF PERIOD RETURN (000 OMITTED) NET ASSETS NET ASSETS** NET ASSETS** NET ASSETS** TURNOVER
- --------- ------ ------------- ----------- ---------------- ------------ --------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 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 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 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 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 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 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 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 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%
$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>
See notes to financial statements.
-71-
<PAGE> 74
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DIVIDENDS & DISTRIBUTIONS
---------------------------------------------------- -------------------------------------
TOTAL FROM TOTAL
NAV NET NET REALIZED/ FROM FROM NET NET DIVIDENDS
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT REALIZED AND
OF PERIOD INCOME GAINS/LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ---------- -------------- ---------- ---------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND FUND
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
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
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
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
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 SHARE
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
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.
*** 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.
-72-
<PAGE> 75
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
- ----------------------------------------------------------------------------------------------------------------------
RATIO OF NET RATIO OF NET
NET ASSETS RATIO OF INVESTMENT RATIO OF INVESTMENT
NAV END OF EXPENSES INCOME TO EXPENSES TO INCOME
END TOTAL PERIOD TO AVERAGE AVERAGE AVERAGE TO AVERAGE PORTFOLIO
OF PERIOD RETURN (000 OMITTED) NET ASSETS NET ASSETS NET ASSETS** NET ASSETS** TURNOVER
- --------- ------- ------------- ----------- ------------ ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 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%
$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%
$ 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%
$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%
$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%
$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%
$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%
$17.63 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>
See notes to financial statements.
-73-
<PAGE> 76
INDEPENDENT AUDITOR'S REPORT VINTAGE MUTUAL FUNDS, INC.
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders
Vintage Mutual Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, of Vintage Mutual Funds, Inc., including
the Government Assets Fund, Liquid Assets Fund, Municipal Assets Fund, Limited
Term Bond Fund, Bond Fund, Income Fund, Municipal Bond Fund, Balanced Fund,
Equity Fund, and Aggressive Growth Fund as of March 31, 1999, and the related
statements of operations, changes in net assets, and financial highlights for
the year then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit. The statements of changes in net assets and financial highlights for
periods ended prior to April 1, 1998 were audited by other auditors whose report
thereon dated May 8, 1998 expressed an unqualified opinion with respect thereto.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 1999, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds, constituting Vintage Mutual Funds, Inc. as of March 31,
1999, and the results of their operations, the changes in their net assets, and
the financial highlights for the year then ended, in conformity with generally
accepted accounting principles.
MCGLADREY & PULLEN, LLP
Des Moines, Iowa
April 30, 1999
-74-
