<PAGE>
FOR MORE INFORMATION ABOUT THE FUNDS, the following documents are available upon
request:
ANNUAL/SEMI-ANNUAL REPORTS TO SHAREHOLDERS
Annual and Semi-annual Reports to shareholders contain additional information on
each Fund's investments. In the Annual Report, you will find a discussion of the
market conditions and investment strategies that significantly affected each
Fund's performance during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The Vintage Funds have an SAI, which contains more detailed information about
each Fund, including its operations and investment policies. The Funds' SAI is
incorporated by reference into (and is legally part of) this Prospectus.
You may request a free copy of the current Annual/Semi-Annual report or the SAI,
by contacting your broker or other financial intermediary, or by contacting the
Funds:
By mail: c/o Vintage Mutual Funds, Inc.
Dept. L-1392
Columbus, OH 43260-1392
By phone: For Information and Literature: (800) 438-6375
By e-mail: [email protected]
By the Internet: www.VintageFunds.com
Or you may view or obtain these documents from the SEC:
In person: at the SEC's Public Reference Room in Washington,
D.C.
By phone: 1-800-SEC-0330 (For Information Only)
By mail: Public Reference Section
Securities and Exchange Commission
Washington, DC 20549-6009
(Duplicating fee required)
On the Internet: www.sec.gov
The Vintage Funds may not be available in all states. Please contact the Funds
to determine if the Funds are available for sale in your state.
File No. 811-08910
<PAGE>
Vintage Mutual Funds
GOVERNMENT ASSETS
LIQUID ASSETS, T and I Shares
MUNICIPAL ASSETS, T and I Shares
VINTAGE LIMITED TERM
VINTAGE BOND
VINTAGE INCOME
VINTAGE MUNICIPAL BOND
VINTAGE BALANCED
VINTAGE EQUITY, S and T Shares
VINTAGE AGGRESSIVE GROWTH
Prospectus dated
July 29, 1999
AS WITH OTHER MUTUAL FUNDS, THE SECURITIES AND EXCHANGE COMMISSION HAS NOT
APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
INVESTMENT ADVISER AND ADMINISTRATOR
Investors Management Group
2203 Grand Avenue
Des Moines, Iowa 50312
Distributor
BISYS FUND SERVICES LIMITED PARTNERSHIP
3435 Stelzer Road
Columbus, Ohio 43219
Legal Counsel
CLINE, WILLIAMS, WRIGHT, JOHNSON & OLDFATHER
1900 First Bank Building
Lincoln, Nebraska 68508
<PAGE>
TABLE OF CONTENTS
RISK/RETURN SUMMARY 2
VINTAGE MONEY MARKET FUNDS 3
VINTAGE BOND FUNDS 5
VINTAGE BALANCED FUND 9
VINTAGE STOCK FUNDS 10
FEES AND EXPENSES OF THE FUNDS 12
DESCRIPTION OF THE FUNDS 14
GOVERNMENT ASSETS FUND 15
LIQUID ASSETS FUND 15
MUNICIPAL ASSETS FUND 15
VINTAGE LIMITED TERM BOND FUND 16
VINTAGE BOND FUND 17
VINTAGE INCOME FUND 17
VINTAGE MUNICIPAL BOND FUND 17
VINTAGE BALANCED FUND 19
VINTAGE EQUITY FUND 20
VINTAGE AGGRESSIVE GROWTH FUND 20
MANAGEMENT OF THE FUNDS 23
PURCHASE AND SALE OF SHARES 25
HOW THE FUNDS VALUE THEIR SHARES 25
HOW TO BUY SHARES 25
HOW TO EXCHANGE SHARES 26
HOW TO SELL SHARES 27
AUTO WITHDRAWAL PLAN 28
AUTOMATIC REDEMPTION 28
DIVIDENDS, DISTRIBUTIONS, AND TAXES 29
DISTRIBUTION ARRANGEMENTS 31
FINANCIAL HIGHLIGHTS 33
FOR MORE INFORMATION ABOUT
THE FUNDS BACK COVER
<PAGE>
RISK/RETURN SUMMARY
The following is a summary of certain key information about the Funds. You will
find additional information about the Funds after this summary.
In this summary, we will identify certain kinds of risks that apply to one or
more of the Funds. These risks are:
Market Risk. This is the risk that market influences will affect expected
returns of all equities and bonds in ways that were not anticipated.
Interest Rate Risk. This is the risk that returns will be better or worse
than expected because of changes in the level of interest rates.
Credit Risk. This is the risk associated with the ability of the firm that
issues securities to meet its obligations on those securities.
The summary also describes specific risks that may apply to one Fund.
The Risk/Return Summary includes a bar chart for each Fund showing its annual
returns and a table showing its average annual returns. The bar chart and the
table provide an indication of the historical risk of an investment in each Fund
by showing:
changes in the Fund's performance from year to year over 10 years or, if
less, the life of the Fund; and
how the Fund's average annual returns for one, five, and 10 years, or,
if less, the life of the Fund, compare to those of a broad-based
securities market index.
A Fund's past performance, of course, does not necessarily indicate how it will
perform in the future.
OTHER IMPORTANT THINGS FOR YOU TO NOTE:
You may lose money by investing in a Fund.
An investment in a Fund is not a deposit in a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
VINTAGE MONEY MARKET FUNDS
GOVERNMENT ASSETS FUND
LIQUID ASSETS FUND
MUNICIPAL ASSETS FUND
OBJECTIVES. The investment objectives of the Money Market Funds are safety of
principal and liquidity, and to the extent consistent with these objectives,
maximum current income. The Municipal Assets Fund seeks current income that is
exempt from federal income taxes.
PRINCIPAL INVESTMENT STRATEGIES. The Funds are "money market funds" that seek to
maintain a stable net asset value of $1.00 per share. Each Fund pursues its
objectives by maintaining a portfolio of high-quality money market securities.
Each Fund primarily invests in:
Government Assets Fund: U.S. Treasury bills or notes and other obligations
issued or guaranteed by the U.S. Government or its agencies or
instrumentalities.
Liquid Assets Fund: U.S. Treasury bills or notes and other obligations
issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, and high-quality commercial paper and corporate
obligations.
Municipal Assets Fund: High-quality, tax-exempt debt obligations of state
and municipal governments.
PRINCIPAL RISKS. The principal risks of investing in the Money Market Funds are
interest rate risk and credit risk. Although the Funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose money by
investing in the Funds.
BAR CHART AND PERFORMANCE INFORMATION
The bar charts and performance information provide an indication of the
historical risk of an investment in the Funds.
You may obtain current yield information for any Fund by calling 1-800-438-6375.
GOVERNMENT ASSETS
FUND
[CHART]
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998
--------------------------------------------------
<S> <C> <C> <C> <C> <C>
2.70% 3.69% 5.39% 4.66% 4.77% 4.77%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 1.36% (quarter ending 6/30/95)
and the lowest return for a quarter was 0.66% (quarter
ending 3/31/93).
The total return for the 6 months ended June 30, 1999
was 2.07%.
<TABLE>
<CAPTION>
--------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
--------------------------------------------------------------
Since
1 Year 5 Year Inception
--------------------------------------------------------------
<S> <C> <C> <C>
Government Assets 4.77% 4.65% 4.32%*
--------------------------------------------------------------
*Inception Date 12/21/92
</TABLE>
-3-
<PAGE>
LIQUID ASSETS FUND The annual returns in the bar chart are for the Fund's
Class I Shares.
[CHART]
<TABLE>
<CAPTION>
1997 1998
-------------
<S> <C>
5.43% 5.08%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 1.36% (quarter ending
12/31/97) and the lowest return for a quarter was 1.15%
(quarter ending 12/31/98).
The total return for the 6 months ended June 30, 1999
was 2.19%.
<TABLE>
<CAPTION>
-----------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
1 Year Since Inception*
-----------------------------------------------------------
<S> <C> <C>
Liquid Assets T 4.91% 5.04%*
-----------------------------------------------------------
Liquid Assets I 5.08% 5.26%*
-----------------------------------------------------------
*Inception Date 10/15/96.
</TABLE>
MUNICIPAL ASSETS The annual returns in the bar chart are for the Fund's
FUND Class I Shares.
[CHART]
<TABLE>
<CAPTION>
1997 1998
-------------
<S> <C>
3.50% 3.06%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 0.91% (quarter ending
12/31/97) and the lowest return for a quarter was 0.71%
(quarter ending 12/31/98).
The total return for the 6 months ended June 30, 1999
was 1.28%.
<TABLE>
<CAPTION>
----------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
1 Year Since Inception*
----------------------------------------------------------
<S> <C> <C>
Municipal Assets T 2.90% 3.09%
----------------------------------------------------------
Municipal Assets I 3.06% 3.31%
----------------------------------------------------------
*Inception Date 10/15/96.
</TABLE>
-4-
<PAGE>
VINTAGE BOND FUNDS
VINTAGE LIMITED OBJECTIVE. The Fund's investment objective is total
TERM BOND FUND return from a portfolio of limited-term fixed-income
securities.
PRINCIPAL INVESTMENT STRATEGIES. The Fund invests
primarily in a diversified portfolio of fixed-income
securities, including corporate debt securities, U.S.
Government securities, and mortgage-related securities.
The Fund normally invests more than 65% of its total
assets in fixed-income securities rated within the
three highest rating categories or, if unrated, of
comparable quality. The Fund expects to maintain a
dollar-weighted average portfolio maturity of 1 to 4
years.
The Fund seeks total return a combination of interest
income from its investments and appreciation or
depreciation in the value of the securities. The Fund
selects investments based on both capital appreciation
and depreciation adjusted periodically based on various
factors, including average maturity.
PRINCIPAL RISKS. The principal risks of investing in
the Fund are interest rate risk and credit risk. The
Fund's investments in mortgage-related securities have
prepayment risk, which is the risk that mortgage loans
will be prepaid when interest rates decline forcing the
Fund to reinvest in securities with lower interest
rates. For this and other reasons, mortgage-related
securities may have significantly greater price and
yield volatility than traditional fixed-income
securities.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
[CHART]
<TABLE>
<CAPTION>
1996 1997 1998
-----------------------
<S> <C> <C>
1.78% 6.70% 6.10%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 3.48% (quarter ending
12/31/95) and the lowest return for a quarter was
-1.64% (quarter ending 3/31/96).
The total return for the 6 months ended June 30, 1999
was 0.44%.
<TABLE>
<CAPTION>
----------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year Inception*
----------------------------------------------------------------
<S> <C> <C>
Vintage Limited Term Bond 6.10% 5.55%
----------------------------------------------------------------
Merrill Lynch 1-5 Yr. Gov't/Corp. 7.68% 7.03%
----------------------------------------------------------------
Lehman Aggregate 8.42% 8.26%
----------------------------------------------------------------
*Inception Date 06/15/95
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
<PAGE>
VINTAGE BOND FUND OBJECTIVE. The Fund's investment objective is income
and capital appreciation, consistent with the
preservation of capital.
PRINCIPAL INVESTMENT STRATEGIES. The Fund invests
primarily in a diversified portfolio of fixed-income
securities, including corporate debt securities, U.S.
Government securities, and mortgage-related securities.
The Fund normally invests more than 65% of its total
assets in fixed-income securities rated within the
three highest rating categories or, if unrated, of
comparable quality. The Fund expects to maintain a
dollar-weighted average portfolio maturity of 4 to 10
years.
The Fund seeks to invest in fixed-income securities to
achieve both current income and appreciation. The Fund
selects investments based on various factors, including
average maturity and interest rate outlook.
PRINCIPAL RISKS. The principal risks of investing in
the Fund are interest rate risk and credit risk. The
Fund's investments in mortgage-related securities have
prepayment risk, which is the risk that mortgage loans
will be prepaid when interest rates decline forcing the
Fund to reinvest in securities with lower interest
rates. For this and other reasons, mortgage-related
securities may have significantly greater price and
yield volatility than traditional fixed-income
securities.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
[CHART]
<TABLE>
<CAPTION>
1996 1997 1998
-----------------------
<S> <C> <C>
2.40% 9.16% 7.83%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 5.00% (quarter ending
12/31/95) and the lowest return for a quarter was
-2.90% (quarter ending 3/31/96).
The total return for the 6 months ended June 30, 1999
was -0.52%.
<TABLE>
<CAPTION>
-------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year Inception*
-------------------------------------------------------------
<S> <C> <C>
Vintage Bond 7.83% 7.31%
-------------------------------------------------------------
Lehman Aggregate 8.67% 8.33%
-------------------------------------------------------------
*Inception Date 07/07/95
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
-6-
<PAGE>
VINTAGE INCOME OBJECTIVE. The Fund's investment objective is current
FUND income, consistent with the preservation of capital.
PRINCIPAL INVESTMENT STRATEGIES. The Fund invests
primarily in a diversified portfolio of fixed-income
securities, including mortgage-related securities, U.S.
Government securities, and corporate debt obligations.
The Fund normally invests more than 65% of its total
assets in fixed-income securities rated within the
three highest rating categories or, if unrated, of
comparable quality. The Fund maintains a
dollar-weighted average portfolio maturity of 4 to 10
years. The Fund invests in fixed income securities to
achieve current income and selects investments based on
factors such as maturity and current income.
PRINCIPAL RISKS. The principal risks of investing in
the Fund are interest rate and credit risk. The Fund's
investments in mortgage-related securities have
prepayment risk, which is the risk that mortgage loans
will be prepaid when interest rates decline forcing the
Fund to reinvest in securities with lower interest
rates. For this and other reasons, mortgage-related
securities may have significantly greater price and
yield volatility than traditional fixed-income
securities.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
[CHART]
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
9.02% -3.14% 14.50% 2.81% 7.14% 7.10%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 4.64% (quarter ending 6/30/95)
and the lowest return for a quarter was -2.27% (quarter
ending 3/31/94).
The total return for the 6 months ended June 30, 1999
was -1.03%.
<TABLE>
<CAPTION>
----------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year 5 Year Inception*
----------------------------------------------------------------
<S> <C> <C> <C>
Vintage Income 7.10% 5.53% 6.14%
----------------------------------------------------------------
Lehman Int. Gov't/Corp. 8.42% 6.60% 7.05%
----------------------------------------------------------------
Lehman Aggregate 8.67% 7.27% 7.77%
----------------------------------------------------------------
*Inception Date 12/15/92
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
-7-
<PAGE>
VINTAGE OBJECTIVE. The Fund's investment objective is current
MUNICIPAL BOND income that is exempt from federal income taxes,
FUND consistent with the preservation of capital.
PRINCIPAL INVESTMENT STRATEGIES. The Fund invests at
least 80% of its net assets in a diversified portfolio
of fixed-income securities with income that is exempt
from federal income taxes and is not subject to the
federal alternative minimum tax. The Fund expects to
maintain a dollar-weighted average portfolio maturity
of 4 to 10 years. While the Fund expects to invest
primarily in higher-rated municipal securities, it may
invest up to 25% of its total assets in below
investment grade securities (commonly known as "junk
bonds").
PRINCIPAL RISKS. The principal risks of investing in
the Fund are interest rate risk and credit risk. To the
extent the Fund invests in lower-rated securities, your
investment is subject to more credit risk than a fund
that invests solely in higher-rated securities. The
Fund's investments in municipal income securities also
have the risk that special factors may adversely affect
the value of municipal securities and have a
significant effect on the value of the Fund's
investments. These factors include political or
legislative changes, uncertainties related to the tax
status of municipal securities or the rights of
investors in these securities.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
[CHART]
<TABLE>
<CAPTION>
1994 1995 1996 1997 1998
-----------------------------------------
<S> <C> <C> <C> <C>
-5.37% 15.09% 3.05% 6.59% 4.83%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 6.39% (quarter ending 3/31/95)
and the lowest return for a quarter was -4.39% (quarter
ending 3/31/94).
The total return for the 6 months ended June 30, 1999
was -1.22%.
<TABLE>
<CAPTION>
-------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year 5 Year Inception*
-------------------------------------------------------------------
<S> <C> <C> <C>
Vintage Municipal Bond 4.83% 4.63% 5.38%
-------------------------------------------------------------------
Merrill Lynch Int. Muni Bond 6.27% 5.84% 6.23%
-------------------------------------------------------------------
*Inception Date 02/16/93
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
-8-
<PAGE>
VINTAGE BALANCED FUND
VINTAGE OBJECTIVE. The Fund's investment objective is long-term
BALANCED FUND growth of capital and income.
PRINCIPAL INVESTMENT STRATEGIES. The Fund invests
primarily in a diversified portfolio of equity
securities and fixed-income securities. The Fund may
invest up to 75% of its total assets in equity
securities, primarily large capitalization companies
with strong earnings potential. The Fund normally
invests at least 25% of its total assets in
fixed-income securities, of which 65% will be invested
in fixed-income securities rated in the three highest
rating categories or, if unrated, of comparable
quality. The Fund expects to maintain a dollar-weighted
average portfolio maturity of 4 to 10 years for its
investments in fixed-income securities.
PRINCIPAL RISKS. The principal risks of investing in
the Fund are market risk, interest rate risk, and
credit risk. The Fund's investments in both equity and
fixed-income securities have allocation risk, which is
the risk that the allocation of the investments between
equity and debt securities may have a more significant
effect on the Fund's net asset value when one of these
asset classes is performing more poorly than the other.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
[CHART]
<TABLE>
<CAPTION>
1996 1997 1998
------------------------
<S> <C> <C>
13.48% 22.82% 20.71%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 16.95% (quarter ending
12/31/98) and the lowest return for a quarter was
-7.25% (quarter ending 9/30/98).
The total return for the 6 months ended June 30, 1999
was 4.93%.
<TABLE>
<CAPTION>
----------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year Inception*
----------------------------------------------------------------------
<S> <C> <C>
Vintage Balanced 20.71% 19.03%
----------------------------------------------------------------------
S&P 500 28.58% 28.64%
----------------------------------------------------------------------
Lehman Int. Gov't/Corp. 8.42% 7.24%
----------------------------------------------------------------------
50% S&P 500 / 50% Lehman Int. Gov't/Corp. 18.50% 17.88%
----------------------------------------------------------------------
*Inception Date 06/0/95
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
-9-
<PAGE>
VINTAGE STOCK FUNDS
VINTAGE EQUITY OBJECTIVE. The Fund's investment objective is long-term
FUND capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES. The Fund invests at
least 75% of its total assets in equity securities. The
Fund invests mainly in large capitalization companies
with strong earnings potential. The Fund attempts to
achieve higher overall return while minimizing risk by
investing in these large capitalization companies with
strong earnings potential.
PRINCIPAL RISKS. The principal risk of investing in the
Fund is market risk.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
The annual returns in the bar chart are for the Fund's
S Shares.
[CHART]
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
5.45% 2.01% 35.71% 21.35% 30.13% 27.46%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 27.51% (quarter ending
12/31/98) and the lowest return for a quarter was
-15.23% (quarter ending 9/30/98).
The total return for the 6 months ended June 30, 1999
was 10.38%.
<TABLE>
<CAPTION>
---------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year 5 Year Inception*
---------------------------------------------------------------
<S> <C> <C> <C>
Vintage Equity S 27.46% 22.74% 19.65%
---------------------------------------------------------------
Vintage Equity T** 27.58% 22.76% 19.67%
---------------------------------------------------------------
S&P 500 28.58% 24.05% 21.58%
---------------------------------------------------------------
* Inception Date for Class S 12/15/92. Inception Date
for Class T 2/14/98.
**Performance figures reflect a "blended" figure
combining the following methods of calculation (a)
for periods before February 14, 1998, the figure used
is based on the Fund's Class S performance; and (b)
for periods after February 14, 1998, an actual Class
T figure is used reflecting a deduction of all
applicable charges and fees for that Class. This
blended figure assumes reinvestment of dividends and
capital gains.
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
-10-
<PAGE>
VINTAGE AGGRESSIVE OBJECTIVE. The Fund's investment objective is long-term
GROWTH FUND capital growth.
PRINCIPAL INVESTMENT STRATEGIES. The Fund normally
invests in companies with a range of capitalizations
that exhibit a strong potential for price appreciation
relative to other companies. The Fund invests in
securities of companies the Adviser believes to be in
high growth industries, companies with products in
niche markets, and securities which are temporarily
undervalued.
PRINCIPAL RISKS. The principal risk of investing in the
Fund is market risk. To the extent the Fund invests in
small or medium capitalization companies, its returns
may be more volatile and differ, sometimes
significantly, from the overall U.S. market. In
addition, these companies may have more risk because
they often have limited product lines, markets, or
financial resources.
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an
indication of the historical risk of an investment in
the Fund.
[CHART]
<TABLE>
<CAPTION>
1996 1997 1998
------------------------
<S> <C> <C>
19.31% 26.16% 25.42%
</TABLE>
During the period shown in the bar chart, the highest
return for a quarter was 27.25% (quarter ending
12/31/98) and the lowest return for a quarter was
-14.20% (quarter ending 9/30/98).
The total return for the 6 months ended June 30, 1999
was 4.50%.
<TABLE>
<CAPTION>
-------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (AS OF 12/31/98)
Since
1 Year Inception*
-------------------------------------------------------------
<S> <C> <C>
Vintage Aggressive Growth 25.42% 22.60%
-------------------------------------------------------------
S&P 400 19.11% 21.86%
-------------------------------------------------------------
NASDAQ Composite 39.63% 25.60%
-------------------------------------------------------------
S&P 500 28.58% 28.00%
-------------------------------------------------------------
Inception Date 09/29/95
</TABLE>
AN INDEX? An "index" is a formula used to measure the
performance of a particular part of the market and
compare against a Fund's performance.
-11-
<PAGE>
FEES AND EXPENSES OF THE FUNDS
SHAREHOLDER (Fees paid directly from your investment)..........None
TRANSACTION EXPENSES
ANNUAL FUND The Examples are to help you compare the cost of
OPERATING EXPENSES investing in the Funds with the cost of investing in
(expenses that are other funds. They assume that you invest $10,000 in
deducted from Fund each Fund for the periods indicated and then redeem all
assets) AND your shares at the end of those periods. They also
EXAMPLES assume that your investment has a 5% return each year
and that the Fund's operating expenses stay the same.
Your actual costs may be higher or lower.
<TABLE>
<CAPTION>
----------------------------------------------------------------------
OPERATING EXPENSES EXAMPLES
<S> <C> <C> <C>
GOVERNMENT ASSETS FUND T SHARES
----------------------------------------------------------------------
Management Fees 0.40%(1) After 1 year $78
----------------------------------------------------------------------
Other Expenses 0.36% After 3 years $243
---------------------------
After 5 years $422
----------------------------------------------------------------------
Total Fund Operating Expenses 0.76% After 10 years $942
----------------------------------------------------------------------
LIQUID ASSETS FUND I SHARES
----------------------------------------------------------------------
Management Fees 0.35% After 1 year $70
----------------------------------------------------------------------
Other Expenses 0.34% After 3 years $221
---------------------------
After 5 years $384
----------------------------------------------------------------------
Total Fund Operating Expenses 0.69% After 10 years $859
----------------------------------------------------------------------
LIQUID ASSETS FUND T SHARES
----------------------------------------------------------------------
Management Fees 0.35% After 1 year $86
----------------------------------------------------------------------
Other Expenses 0.49% After 3 years $268
---------------------------
After 5 years $466
----------------------------------------------------------------------
Total Fund Operating Expenses 0.84% After 10 years $1,037
----------------------------------------------------------------------
MUNICIPAL ASSETS FUND I SHARES
----------------------------------------------------------------------
Management Fees 0.35% After 1 year $81
----------------------------------------------------------------------
Other Expenses 0.44% After 3 years $252
---------------------------
After 5 years $439
----------------------------------------------------------------------
Total Fund Operating Expenses 0.79%(3) After 10 years $978
----------------------------------------------------------------------
MUNICIPAL ASSETS FUND T SHARES
----------------------------------------------------------------------
Management Fees 0.35% After 1 year $96
----------------------------------------------------------------------
Other Expenses 0.59% After 3 years $300
---------------------------
After 5 years $520
----------------------------------------------------------------------
Total Fund Operating Expenses 0.94%(2) After 10 years $1,155
----------------------------------------------------------------------
VINTAGE LIMITED TERM BOND FUND
----------------------------------------------------------------------
Management Fees 0.50%(4) After 1 year $98
----------------------------------------------------------------------
Other Expenses 0.46% After 3 years $306
---------------------------
After 5 years $531
----------------------------------------------------------------------
Total Fund Operating Expenses 0.96% After 10 years $1,178
----------------------------------------------------------------------
VINTAGE BOND FUND
----------------------------------------------------------------------
Management Fees 0.55% After 1 year $105
----------------------------------------------------------------------
Other Expenses 0.48% After 3 years $328
---------------------------
After 5 years $569
----------------------------------------------------------------------
Total Fund Operating Expenses 1.03% After 10 years $1,259
----------------------------------------------------------------------
VINTAGE INCOME FUND
----------------------------------------------------------------------
Management Fees 0.60% After 1 year $103
----------------------------------------------------------------------
Other Expenses 0.41% After 3 years $322
---------------------------
After 5 years $558
----------------------------------------------------------------------
Total Fund Operating Expenses 1.01% After 10 years $1,236
----------------------------------------------------------------------
VINTAGE MUNICIPAL BOND FUND
----------------------------------------------------------------------
Management Fees 0.50%(5) After 1 year $97
----------------------------------------------------------------------
Other Expenses 0.45% After 3 years $303
---------------------------
After 5 years $525
----------------------------------------------------------------------
Total Fund Operating Expenses 0.95% After 10 years $1,166
----------------------------------------------------------------------
VINTAGE BALANCED FUND
----------------------------------------------------------------------
Management Fees 0.75% After 1 year $130
----------------------------------------------------------------------
Other Expenses 0.53% After 3 years $406
---------------------------
After 5 years $702
----------------------------------------------------------------------
Total Fund Operating Expenses 1.28% After 10 years $1,545
----------------------------------------------------------------------
VINTAGE EQUITY FUND S SHARES
----------------------------------------------------------------------
Management Fees 0.75% After 1 year $143
----------------------------------------------------------------------
Other Expenses 0.65% After 3 years $443
---------------------------
After 5 years $766
----------------------------------------------------------------------
Total Fund Operating Expenses 1.40% After 10 years $1,680
----------------------------------------------------------------------
VINTAGE EQUITY FUND T SHARES
----------------------------------------------------------------------
Management Fees 0.75% After 1 year $117
----------------------------------------------------------------------
Other Expenses 0.40% After 3 years $365
---------------------------
After 5 years $633
----------------------------------------------------------------------
Total Fund Operating Expenses 1.15% After 10 years $1,398
----------------------------------------------------------------------
VINTAGE AGGRESSIVE GROWTH FUND
----------------------------------------------------------------------
Management Fees 0.95% After 1 year $145
----------------------------------------------------------------------
Other Expenses 0.47% After 3 years $449
---------------------------
After 5 years $776
----------------------------------------------------------------------
Total Fund Operating Expenses 1.42% After 10 years $1,702
----------------------------------------------------------------------
(1) During the fiscal year the Fund's Adviser waived a
portion of the management fee for an actual fee of
0.37%. The Adviser may reduce or eliminate the fee
waiver at any time.
(2) During the fiscal year certain fees were
voluntarily reduced for an actual fee of 0.87%.
(3) During the fiscal year certain fees were
voluntarily reduced for an actual fee of 0.72%.
(4) On March 1, 1999, the management fees were reduced
from 0.60% to 0.50%. The information in the table
has been restated to reflect the current fee.
(5) During the fiscal year the Fund's Adviser waived a
portion of the management fee for an actual fee of
0.49%. On March 1, 1999, the management fees were
reduced from 0.60% to 0.50% and the fee waiver was
eliminated. The information in the table has been
restated to reflect the current fee.
</TABLE>
WHAT DOES IT MEAN? "Management fees" are paid to the
investment adviser for managing the investments and
conducting other functions.
WHAT DOES IT MEAN? "Other expenses" are paid to help
cover the costs of operating the Fund such as fees for
registering the Fund, custody, and transfer agency.
HOW ARE EXPENSES PAID? You don't pay for operating
expenses from your own account. Instead, the Fund pays
the expenses and then charges each investor an equal
portion of the expense per share.
-13-
<PAGE>
DESCRIPTION OF THE FUNDS
This section of the Prospectus provides a more complete description of each
Fund's investment objectives and principal strategies and risks. There can, of
course, be no assurance that any Fund will achieve its investment objective.
UNDERSTAND THE RISKS
This section describes risks that affect the Funds'
portfolios as a whole. Certain of these risks may apply
to one or more of the Funds. These risks are:
- MARKET RISK. This is the risk that market influences
will affect expected returns of all equities and
bonds in ways that were not anticipated.
- INTEREST RATE RISK. This is the risk that returns
will be better or worse than expected because of
changes in the level of interest rates.
- CREDIT RISK. This is the risk associated with the
ability of the firm that issues securities to meet
its obligations on those securities.
- MANAGEMENT RISK. This risk is the possibility that
the Funds' managers may make poor choices in
selecting securities and that the Funds will not
perform as well as other funds.
This section also describes specific risks that may
affect a particular Fund's portfolio.
-14-
<PAGE>
VINTAGE MONEY MARKET FUNDS
OBJECTIVE AND PRINCIPAL The Funds' investment objectives are safety of
INVESTMENT STRATEGIES principal and liquidity, and to the extent consistent
with these objectives, maximum current income (exempt
from Federal income taxes in the case of the Municipal
Assets Fund). As money market funds, each Fund must
meet the requirements of SEC Rule 2a-7. The Rule
imposes strict requirements on the investment quality,
maturity, and diversification of the Funds' investment.
Under Rule 2a-7, the Funds' investments must each have
a remaining maturity of no more than 397 days and the
Funds must each maintain an average weighted maturity
that does not exceed 90 days.
GOVERNMENT ASSETS The Fund invests exclusively in U.S. Treasury bills,
FUND notes and other obligations issued or guaranteed by the
U.S. Government or its agencies or instrumentalities.
The Fund may invest in repurchase agreements for these
U.S. Government obligations.
LIQUID ASSETS FUND The Fund pursues its objectives by investing in
high-quality money market obligations. The Fund may
invest in:
- U.S. Treasury bills, notes and other obligations
issued or guaranteed by the U.S. Government, its
agencies, or instrumentalities;
- redeemable interest-bearing ownership certificates
issued by one or more guaranteed loans trusts created
for the purpose of acquiring participation interests
in the guaranteed portion of Farmer's Home
Administration guaranteed loans.
- high-quality commercial paper (rated or determined by
the Adviser to be of comparable quality);
- certificates of deposit and bankers' acceptances
issued by U.S. banks that have assets in excess of
$10,000,000 and obligations of other banks or savings
and loans insured by the FDIC;
- high-quality, short-term corporate obligations; and
- repurchase agreements collateralized by the types of
securities listed above.
MUNICIPAL ASSETS The Fund pursues its objective by investing in high-
FUND quality, tax-exempt debt obligations of state and
municipal governments. The Fund may invest in:
- tax-exempt debt obligations issued by state and
municipal governments that are unrated and backed by
demand repurchase commitments and participation
interests in these securities; and
- variable rate demand notes.
The Fund may purchase new issues of tax-exempt debt
obligations that are offered on a when-issued basis
with the securities to be delivered and paid for
approximately 45 days following the initial purchase
commitment. The Fund may also invest up to 20% of its
assets in taxable securities.
-------------------------------------------------------
THE MONEY MARKET? So their cash won't sit idly without
earning interest, many institutions loan it to other
institutions who need the money to fill very short-term
needs (often, literally, overnight). Borrowers get the
cash needed and lenders earn interest on the loan while
still having quick access to their cash. The cash you
invest in a money market fund is used exactly the same
way--keeping you within quick reach of your own money.
-15-
<PAGE>
RISK CONSIDERATIONS The Money Market Funds are subject to management risk.
In addition, specific risks of the Funds' portfolios
include:
INTEREST RATE RISK. Because the Funds invest in
short-term securities, a decline in interest rates will
affect the Funds' yields as these securities mature or
are sold and the Funds purchase new short-term
securities with lower yields. Generally, an increase in
interest rates causes the value of a debt instrument to
decrease. The change in value for shorter-term
securities is usually smaller than for securities with
longer maturities. Because the Funds invest in
securities with short maturities and seek to maintain a
stable net asset value of $1.00 per share, it is
possible, though unlikely, that an increase in interest
rates would change the value of your investment.
CREDIT RISK. This is the risk that a security's credit
rating will be downgraded or that the issuer of a
security will default (fail to make scheduled interest
and principal payments). The Funds invest in highly
rated securities to minimize credit risk.
MUNICIPAL MARKET RISK. The Municipal Assets Fund faces
the risk that special factors may adversely affect the
value of municipal securities and have a significant
effect on the value of the Fund's investments. These
factors include political or legislative changes,
uncertainties related to the tax status of municipal
securities, or the rights of investors in these
securities. The Fund's investments in certain municipal
securities with principal or interest payments that are
made from a specific project or facility, and not from
general tax revenues, may have increased risks. Factors
affecting the project or facility, such as local or
economic conditions, could have significant effect on
the project's ability to make payments of principal and
interest on these securities.
VINTAGE BOND FUNDS
OBJECTIVE AND PRINCIPAL The Fund's investment objective is total return from a
INVESTMENT STRATEGIES portfolio of limited-term fixed-income securities. The
Fund normally invests more than 65% of its total assets
VINTAGE LIMITED TERM in fixed-income securities rated within the three
BOND FUND highest rating categories or, if unrated, of comparable
quality. Among the Fund's investments in fixed-income
securities are corporate debt securities, U.S.
Government obligations, and mortgage-related and
asset-backed securities. The Fund expects to maintain a
dollar-weighted average portfolio maturity of 1 to 4
years.
The Fund seeks to obtain total return through a
combination of interest income from the Fund's
underlying fixed-income securities, appreciation or
depreciation in the value of these fixed-income
securities, and gains or losses realized upon the sale
of these securities. In selecting investments, the Fund
places primary emphasis on capital appreciation and
capital preservation through periodic adjustment of the
average maturity or duration of the Fund's portfolio.
Duration is a measure of a securities average life at
the present value of its cash flow (or interest
payments). The Fund also considers factors such as
securities selection, maturity structure and sector
allocation. Current income is a secondary
consideration.
The Fund primarily invests in bonds, notes, and
debentures of a wide range of domestic fixed-income
security issuers.
VINTAGE BOND FUND The Fund's investment objective is income and capital
appreciation, consistent with the preservation of
capital. The Fund normally invests more than 65% of
its total assets in debt securities rated within the
three highest rating categories or, if
-------------------------------------------------------
LIQUIDITY? Liquidity defines how quickly an investment
can be converted to cash. Money market funds are the
most liquid mutual funds, converting cash in one day.
All other types of Funds require a three day
"settlement," which means the cash isn't available to
you until the third day after a sale.
-16-
<PAGE>
unrated, of comparable quality. Among the Fund's
investments in fixed-income securities are corporate
debt securities, mortgage-related and asset-backed
securities, and U.S. Government obligations. In
selecting investments, the Fund places primary emphasis
on portfolio duration analysis, yield-curve
positioning, sector allocation and issue selection. The
Fund expects to maintain a dollar-weighted average
portfolio maturity of 4 to 10 years.
The Fund primarily invests in bonds, notes, and
debentures of a wide range of domestic fixed-income
security issuers.
The market value of fixed-income securities changes as
interest rates change. When interest rates decline, the
value of these securities generally increases. When
interest rates rise, the value of these securities
generally decreases. To meet the objectives of the Fund
and to seek additional stability of principal, the Fund
adjusts the average maturity of its investments based
on the direction of interest rate levels.
VINTAGE INCOME FUND The Fund's investment objective is current income,
consistent with the preservation of capital. The Fund
normally invests more than 65% of its total assets in
fixed-income securities rated within the three highest
rating categories or if unrated, of comparable quality.
Among the Fund's investments in fixed-income securities
are mortgage-related and asset-backed securities,
corporate debt securities, and U.S. Government
obligations. In selecting investments, the Fund places
primary emphasis on an analysis of the duration, or
average life of its portfolio, the direction of
interest rates or yield-curve positioning, sector
allocation and issue selection. The Fund expects to
maintain a dollar-weighted average portfolio maturity
of 4 to 10 years.
The Fund primarily invests in bonds, notes, and
debentures of a wide range of domestic fixed-income
security issuers.
The market value of fixed-income securities changes as
interest rates change. When interest rates decline, the
value of these securities generally increases. When
interest rates rise, the value of these securities
generally decreases. To meet the objectives of the Fund
and to seek additional stability of principal, the Fund
adjusts the average maturity of its investments based
on the interest rate outlook. During periods of rising
interest rates and falling prices, the Fund could
select investments with a shorter average maturity to
cushion the effect of price declines on the Fund's net
asset value. When rates are falling and prices are
rising, the Fund may consider investments with a longer
average maturity.
VINTAGE MUNICIPAL The Fund's investment objective is current income, that
BOND is exempt from federal income taxes, consistent with
the preservation of capital. The Fund normally invests
at least 80% of its net assets in a diversified
portfolio of municipal securities paying interest that
is exempt from federal income taxes and that is not
subject to alternative minimum tax ("AMT"). The Fund
expects to maintain a dollar-weighted average portfolio
maturity of 4 to 10 years.
While maintaining an average portfolio maturity of 4 to
10 years, the Fund normally invests in municipal
obligations that have a stated or remaining maturity of
25 years or less or in municipal obligations with a
stated or remaining maturity in excess of 25 years if
such obligations have an unconditional put to sell or
redeem the securities within 25 years from the date of
purchase.
-17-
<PAGE>
The Fund invests in:
- municipal bonds that are rated within the five
highest rating categories; and
- municipal notes, tax-exempt commercial paper, and
variable rate demand obligations that are rated
within the two highest rating categories.
The Fund also may invest up to 10% of its total assets
in municipal obligations that are unrated at the time
of purchase but are determined by the Adviser to be of
comparable quality to rated securities.
Municipal securities are typically classified as either
"general obligation" or "revenue" bonds. General
obligation securities are secured by the issuer's
pledge of its full faith, credit, and taxing power for
the payment of principal and interest. Revenue bonds
are payable only from the revenues derived from a
particular facility or class of facilities, or, in some
cases, from the proceeds of a special excise tax or
other specific revenue source. The payment of principal
and interest on revenue bonds is dependent solely on
the ability of the user of the facilities financed by
the bonds to meet its financial obligations and a
secured interest in the facility.
The Fund may invest up to 25% of its total assets in
municipal securities that are related in such a way
that business or political developments or changes
affecting one security could also affect the others
(for example, securities with interest that is paid
from projects of a similar type).
RISK CONSIDERATIONS The principal risks of the Vintage Bond Funds are
interest rate risk, credit risk, management risk, and
market risk.
The Vintage Bond Funds, other than the Municipal Bond
Fund, may invest a significant portion of their assets
in mortgage-related and asset-backed securities. These
securities have sensitivities to changes in interest
rates that are different from many other types of debt
securities. These types of securities are subject to
prepayment when interest rates fall, which generally
results in lower returns because the Funds must
reinvest their assets in debt securities with lower
interest rates. When interest rates rise, the
maturities of these types of securities tend to
lengthen because prepayments decline and the value of
the securities decreases more significantly.
The Municipal Bond Fund has municipal market risk. This
is the risk that special factors may adversely affect
the value of municipal securities and have a
significant adverse effect on the value of the Fund's
investments. These factors include political or
legislative changes, uncertainties related to the tax
status of municipal securities, or the rights of
securities holders in these securities. The Fund's
investments in certain municipal securities with
principal and interest payments that are made from the
revenues of a specific project or facility, and not
general tax revenues, may have increased risk. Factors
affecting the project or facility, such as local
business or economic conditions, could have a
significant effect on the project's ability to make
payments of principal and interest on these securities.
-------------------------------------------------------
TAX-EXEMPT FUND? Funds that invest primarily in
tax-exempt municipal bonds from a particular state are
called "tax-exempt Funds." The income you earn from
these Funds may be exempt from local, state, or federal
taxation.
-------------------------------------------------------
WHAT IS RISK? Every Fund has risks, some more than
others. But there's another kind of risk you might also
consider; the risk of not reaching your goal. For
example, if you're trying to earn enough to pay for
college in, say, ten years, a low-interest bond fund
may not earn enough to grow your money in time. That's
why knowing your goal and the time frame for reaching
that goal are crucial steps in choosing the right
investments.
-18-
<PAGE>
OTHER INVESTMENT All of the Vintage Bond Funds may invest in debt
POLICIES AND RISKS securities rated in the five highest rating categories.
FOR THE BOND FUNDS The Funds also may invest up to 25% of their assets in
debt securities rated in fifth highest rating category,
which are considered below investment grade securities
(commonly known as "junk bonds"). The Bond Funds'
investments in lower-rated debt securities are subject
to more interest rate and credit risk than investments
in higher-rated debt securities.
VINTAGE BALANCED FUND
OBJECTIVE AND PRINCIPAL The Fund's investment objective is long-term growth of
INVESTMENT STRATEGIES capital and income. The Fund invests in a diversified
portfolio of equity securities and fixed-income
securities. Normally, the Fund invests up to 75% of its
total assets in equity securities and at least 25% of
its total assets in fixed-income securities. The
investment manager allocates holdings to take advantage
of economic conditions, general market trends, interest
rate levels, and changes in fiscal and monetary
policies.
For the equity portion of the portfolio, the Fund
selects investments based on an earnings focus that
considers quantitative and qualitative factors, such as
revenue potential, balance sheet strength, management
quality, industry leadership, profit margins, cash flow
generation and identifiable growth catalysts. The Fund
seeks industry and stock diversification to minimize
risk. The Fund's investments in equity securities
include common stocks, preferred stocks, and
convertible securities. The Fund also may invest in
foreign securities through the purchase of American
Depository Receipts ("ADRs").
In the fixed-income portion of the portfolio, the Fund
expects to maintain a dollar-weighted average maturity
of 4 to 10 years. The Fund will invest approximately
65% of this portion of its portfolio in investment
grade securities (rated in the three highest rating
categories or, if unrated, of comparable quality).
These securities include corporate debt securities,
mortgage-related and asset-backed securities, and U.S.
Government obligations. The Fund invests in bonds,
notes, and debentures of a wide range of U.S. corporate
issuers. The Fund also may invest up to 25% of the
fixed-income portion of its portfolio in lower-rated
securities.
RISK CONSIDERATIONS The principal risks of the Balanced Fund are market
risk, interest rate risk, credit risk, and management
risk. In addition, the Fund has allocation risk, which
is the risk that the allocation of investments between
equity and debt securities will have a more significant
effect on the Fund's net asset value when one of these
asset classes is performing more poorly than the other.
The fixed-income portion of the Fund's portfolio has
similar risks to those discussed above for the Vintage
Bond Funds. These include the risk of investing in
mortgage-related securities, which tend to be more
volatile than other types of fixed-income securities,
and the risk of investing in lower-rated securities,
which may have more interest rate and credit risk.
-19-
<PAGE>
VINTAGE STOCK FUNDS
OBJECTIVE AND PRINCIPAL The Fund's investment objective is long-term capital
INVESTMENT STRATEGIES appreciation. The Fund normally invests at least 75% of
its total assets in equity securities. The Fund
VINTAGE EQUITY FUND primarily invests in large capitalization companies
with strong earnings potential. The Fund strives for
high overall return, while minimizing risk through the
selection of higher-quality equity securities. The
Fund invests in common stocks and convertible and
preferred securities. The Fund also may invest in
foreign securities through the purchase of ADRs.
Focusing on earnings, the Fund selects equity
securities using a process that features thorough
research and fundamental analysis based on a "bottom
up" approach. The Fund, through a variety of sources,
identifies investment opportunities that exhibit
superior growth potential. The Fund selects investments
based on a long-term perspective and emphasizes quality
and consistency of earnings.
The earnings focus of the selection process utilizes a
number of factors. These factors are quantitative and
qualitative. They include revenue potential, balance
sheet strength, management quality, industry
leadership, profit margins, cash flow generation and
identifiable growth catalysts.
The Fund generally invests in those firms whose stock
trades at an attractive price relative to earnings
potential in relation to overall market, relevant peer
group and historical trading range valuations. The Fund
may sell stocks that it believes to be over-valued
relative to earnings growth potential, when
fundamentals weaken or when better prospects are
discovered.
VINTAGE AGGRESSIVE The Fund's investment objective is long-term capital
GROWTH FUND growth. The Fund invests primarily in equity securities
of companies with a range of capitalizations that
exhibit a strong potential for price appreciation
relative to the general equity markets. The Fund
invests in common stocks and convertible and preferred
securities. The Fund also may invest in foreign
securities through the purchase of ADRs. Dividend
income is not a factor in selecting investment
securities.
Using the same earnings-focused criteria described for
the Equity Fund, the Fund seeks investments in firms
with superior earnings potential and products in niche
markets, and stocks that are perceived to be
temporarily under-valued. The Fund may make more
significant investments in firms or industry sectors
that are believed to be particularly attractive. The
Fund may make more frequent purchases or sales of
stocks based on rapid swings in relative valuations.
-------------------------------------------------------
MARKET CAPITALIZATION? All stocks have a "market
capitalization." It refers to the stock's total value
in the marketplace, determined by multiplying the
number of shares issued times the price of each share.
For example, a company with many millions of shares
selling at a high price has a large market
capitalization and would be called a "large cap" stock.
A company with relatively few shares selling at a low
price would be called a "small cap" stock.
-20-
<PAGE>
RISK CONSIDERATIONS The principal risks of the Stock Funds are market risk
and management risk. To the extent that the Funds may
invest in small- to mid-capitalization companies, they
may have capitalization risk. These investments tend to
be more volatile than investments in large-cap
companies. In addition, small-cap companies may have
more risk because they often have limited product
lines, markets, or financial resources. Also, the
market for the sale of small-cap stocks may be less
liquid. To the extent that the Funds may invest in
foreign securities, they may have foreign risk. This is
the risk of investments in issuers located in foreign
countries, which may have a greater price volatility
and less liquidity. Investments in foreign securities
also are subject to political, regulatory, and
diplomatic risks. Foreign risk includes currency risk,
which may occur due to fluctuations in the exchange
rates between the U.S. dollar and foreign currencies.
This risk could negatively affect the value of a Fund's
investments.
OTHER INVESTMENT MORTGAGE-RELATED AND ASSET-BACKED SECURITIES.
INFORMATION Mortgage-related securities represent pools of mortgage
loans assembled for sale to investors by various
governmental agencies and government-related
organizations, as well as by private issuers (such as
commercial banks, savings and loan institutions,
mortgage bankers and private mortgage insurance
companies).
Asset-backed securities represent fractional interests
in pools or leases, retail installment loans or
revolving credit receivables, both secured and
unsecured. These assets are generally held by a trust,
and payments of principal and interest or interest only
are passed-through monthly or quarterly to certificate
holders and may be guaranteed up to certain amounts by
letters of credit issued by a financial institution
affiliated or unaffiliated with the trustee or
originator of the trust.
U.S. GOVERNMENT SECURITIES. U.S. Government securities
include obligations issued or guaranteed by the U.S.
Treasury, such as Treasury bills, notes, bonds, and
certificates of indebtedness, and obligations issued or
guaranteed by agencies or instrumentalities of the U.S.
Government.
PORTFOLIO TURNOVER RATE. The portfolio turnover rate
for each Fund is included in the Financial Highlights
Section. The Funds are actively managed and, in some
cases in response to market conditions, a Fund's
portfolio turnover may exceed 100%. A higher rate of
portfolio turnover increases brokerage and other
expenses and may affect a Fund's returns. A higher
portfolio turnover rate also may result in the
realization of substantial net short-term capital
gains, which, when distributed, are taxable to a Fund's
shareholders.
TEMPORARY DEFENSIVE POSITION. For temporary defensive
purposes in response to adverse market or other
conditions, a Fund may make investments, including
short-term money market instruments or holding
substantial cash reserves, that are inconsistent with
the Fund's primary investment strategies. For those
Funds that invest primarily in tax-exempt securities,
these temporary investments could include taxable
securities. While the Funds are investing for temporary
defensive purposes, they may not meet their investment
objectives.
-21-
<PAGE>
YEAR 2000. The Funds could be adversely affected if the
computer systems used by the Adviser and other service
providers do not properly process and calculate
date-related information and data from and after
January 1, 2000. This is commonly known as the "Year
2000 Problem." The Adviser is taking steps that it
believes are reasonably designed to address the Year
2000 Problem for the computer services that it uses and
to obtain reasonable assurances that comparable steps
are being taken by the Funds' other major service
providers. At this time, there can be no assurance that
these steps will be sufficient to avoid any adverse
impact on the Funds. In addition, the Year 2000 Problem
may adversely affect the issuers of securities in which
the Funds invest, which, in turn, may adversely affect
the Funds' NAV.
-22-
<PAGE>
MANAGEMENT OF THE FUNDS
INVESTMENT ADVISER The Funds' Adviser is Investors Management Group, Ltd.
("IMG"), 2203 Grand Avenue, Des Moines, Iowa 50312. IMG
is a wholly owned subsidiary of AMCORE Investment
Group, N.A. that provides continuous investment
management to pension and profit-sharing plans,
insurance companies, public agencies, banks, endowments
and charitable institutions, other mutual funds,
individuals and others. As of June 30, 1999, IMG had
approximately $4.9 billion in equity, fixed-income and
money market assets under management.
IMG provides investment advisory services and order
placement facilities for the Funds. For these advisory
services for the fiscal year ending March 31, 1999, the
Funds paid IMG as a percentage of average daily net
assets:
<TABLE>
<CAPTION>
FEE AS A PERCENTAGE OF
FUND AVERAGE DAILY NET ASSETS*
<S> <C>
Government Assets Fund .40%
Liquid Assets Fund .35%
Municipal Assets Fund .35%
Vintage Limited Term Bond Fund .50%
Vintage Bond Fund .55%
Vintage Income Fund .60%
Vintage Municipal Bond Fund .50%
Vintage Balanced Fund .75%
Vintage Equity Fund .75%
Vintage Aggressive Growth Fund .95%
</TABLE>
* See the "Fee Table" at the beginning of the
Prospectus for more information about fee waivers.
-23-
<PAGE>
The following individuals serve as portfolio managers for the Funds and are
primarily responsible for the day-to-day management of the Funds' portfolios:
PORTFOLIO MANAGERS FOR THE GOVERNMENT ASSETS, LIQUID ASSETS, MUNICIPAL ASSETS,
LIMITED TERM BOND, BOND, INCOME, MUNICIPAL BOND, AND BALANCED FUNDS
<TABLE>
<S> <C> <C>
- ----------------------------- ------------------------------ ------------------------------
KATHRYN D. BEYER, CFA, JEFFREY D. LORENZEN, CFA, ELIZABETH S. PIERSON, CFA,
MANAGING DIRECTOR MANAGING DIRECTOR VICE PRESIDENT AND SENIOR
FIXED-INCOME MANAGER
- - Ms. Beyer is a fixed-income - Mr. Lorenzen is a
strategist and is a member fixed-income strategist, is - Ms. Pierson is a
of IMG's Investment Policy a member of IMG's Investment fixed-income strategist and
Committee. Policy Committee, and is a member of IMG's
chairperson of the Bond Investment Policy Committee.
- - She has been with IMG since Research Committee.
1993. - She has been with AMCORE
- He has been with IMG since Capital Management, Inc. (or
1992. a predecessor) since 1984.
Ms. Pierson became an
employee of IMG effective
with the acquisition of IMG
by AMCORE Financial, Inc. in
February 1998.
- ----------------------------- ------------------------------ ------------------------------
</TABLE>
PORTFOLIO MANAGERS FOR THE BALANCED, EQUITY AND AGGRESSIVE GROWTH FUNDS
------------------------------- ------------------------------
JULIE A. O'ROURKE, CFA, VICE DARRELL C. THOMPSON, SENIOR
PRESIDENT AND EQUITY MANAGER VICE PRESIDENT AND SENIOR
EQUITY MANAGER
- Ms. O'Rourke is a member of
IMG's Investment Policy - Mr. Thompson is a member of
Committee. IMG's Investment Policy
Committee.
- She has been with AMCORE
Capital Management, Inc. (or - He has been with AMCORE
a predecessor) since 1991. Capital Management, Inc. (or
Ms. O'Rourke became an a predecessor) since 1973.
employee of IMG effective Mr. Thompson became an
with the acquisition of IMG employee of IMG effective
by AMCORE Financial, Inc. in with the acquisition of IMG
February 1998. by AMCORE Financial, Inc. in
February 1998.
------------------------------- ------------------------------
-24-
<PAGE>
PURCHASE AND SALE OF SHARES
HOW THE FUNDS Except for the Money Market Funds, each Fund's net
VALUE THEIR SHARES asset value or NAV is calculated at 3:00 p.m. Central
Time each day the New York Stock Exchange ("Exchange")
is open for business. The Money Market Funds' NAV is
calculated at 11:00 a.m. Central Time.
To calculate NAV, a Fund's assets are valued and
totaled, liabilities are subtracted, and the balance,
called net assets, is divided by the number of shares
outstanding. The Funds, other than the Money Market
Funds, value their assets at their current market value
determined on the basis of market quotations, or if
such quotations are not readily available, such other
methods as the Funds' directors believe accurately
reflect fair market value. The Money Market Funds value
their securities at their amortized cost. This method
involves valuing a security at its cost and thereafter
applying a constant amortization to maturity of any
discount or premium, regardless of the effect of
fluctuating interest rates on the market value of the
investment.
For the Money Market Funds, a purchase order for
Shares received in good order by the Funds by 11:00
a.m. Central Time is effected at the net asset value
per share calculated as of 11:00 a.m. Central Time, and
investors will receive the dividend declared that day,
if the Custodian has received the purchase price in
federal funds or other immediately available funds by
3:00 p.m. Central Time that day. A purchase order for
Shares received after 11:00 a.m. Central Time and prior
to 3:00 p.m. Central Time for which such funds have
been received by 3:00 p.m. Central Time will be
effected as of 11:00 a.m. Central Time the following
day, and will begin to accrue dividends at that time.
If federal funds are not available by 3:00 p.m. Central
Time, the order will be canceled. Payment for orders
that are not accepted or are canceled will be returned
after prompt inquiry to the transmitting organization.
HOW TO BUY SHARES You may purchase a Fund's shares through qualified
banks, broker/dealers, investment advisory firms and
other organizations that have entered into dealer
and/or shareholder agreements with the distributor
and/or servicing agreements with the Funds.
Minimum investment amounts are:
Initial $1,000
Subsequent $50
401(k) and 403(b) and other plans
Initial and Subsequent $25
Automatic Investment Program
Initial $250
Subsequent $25
To purchase shares of a Fund, complete an Account
Application and return it along with a check (or other
negotiable bank draft or money order) in at least the
minimum initial purchase amount, made payable to
Vintage Mutual Funds, Inc. to:
Vintage Mutual Funds, Inc.
Dept. L-1392
Columbus, OH 43260-1392
-------------------------------------------------------
NAV? Why is a share priced at something called the
"NAV" (net asset value)? If you take the total value of
all the securities held by the Fund, deduct the
expenses paid by the Fund, and then divide that net
result by the number shares owned by investors, you get
the share's net asset value. The NAV is calculated at
the end of each business day of the Fund.
-25-
<PAGE>
An Account Application form can be obtained by calling
the Funds at (800) 438-6375 or from the Funds' website
at www.VintageFunds.com. Subsequent purchases of shares
of a Fund may be made at any time by mailing a check,
payable to Vintage Mutual Funds, Inc., to the above
address. If you are an existing Fund shareholder, you
may purchase shares by electronic funds transfer if you
have completed the appropriate section of the Account
Application. Call (800) 438-6375 to arrange a transfer
from your bank account.
A Fund is required to withhold 31% of taxable
dividends, capital gains distributions, and redemptions
paid to shareholders who have not provided the Fund
with their certified taxpayer identification number. To
avoid this, you must provide your correct Tax
Identification Number (Social Security Number for most
investors) on your Account Application.
A Fund may refuse any order to purchase shares. In
particular, the Funds reserve the right to restrict
purchases of shares (including exchanges) when they
appear to evidence a pattern of frequent purchases and
sales made in response to short-term conditions.
HOW TO EXCHANGE You may exchange your Fund shares for shares of the
SHARES same class of the other Funds. Exchanges of shares are
made at the next-determined NAV. You may request an
exchange by mail or telephone. You must call by 3:00
p.m., Central Time, to receive that day's NAV. The
Funds may change, suspend, or terminate the exchange
service at any time. The exchange option will be
unavailable for a period of 30 days following a
telephonic address change.
AUTO EXCHANGE. In order to participate in Auto
Exchange, after completing the appropriate section of
the Account Application, you must:
- be a shareholder of the Money Market Funds;
- have a minimum initial purchase of $10,000 in the
Money Market Funds; and
- maintain a minimum account balance of $1,000.
To change Auto Exchange instructions or to discontinue
the feature, you must send a written request to the
Vintage Mutual Funds, Inc., Dept. L-1392, Columbus, OH
43260-1392. The distributor may amend or terminate Auto
Exchange without notice at any time.
-26-
<PAGE>
HOW TO SELL SHARES You may "redeem" your shares (I.E., sell your shares
back to a Fund) on any day the Exchange is open, either
directly or through your financial intermediary. Your
sales price will be the next-determined NAV after the
Fund receives your sales request in proper form.
Normally, proceeds will be sent to you within 3 days.
If you recently purchased your shares by check or
electronic funds transfer, your redemption payment may
be delayed until the Fund is reasonably satisfied that
the check or electronic funds transfer has been
collected (which may take up to 10 days). Redemptions
may ordinarily be requested by mail. Redemptions may
also be requested by telephone if you selected that
option on the Account Application.
SELLING SHARES DIRECTLY TO THE FUND
BY MAIL:
Send a signed letter of instruction to:
Vintage Mutual Funds, Inc.
Dept. L-1392
Columbus, OH 43260-1392
For your protection, a bank, a member firm of a
national stock exchange, a credit union, a clearing
agency, a savings association, or other eligible
guarantor institution, must guarantee signatures.
Additional documentation is required for the sale of
shares by corporations, intermediaries, fiduciaries and
surviving joint owners. If you have any questions about
the procedures, contact the Funds.
BY TELEPHONE:
You may redeem your shares by telephone request unless
you choose not to have this option on the Account
Application. Call the Funds at (800) 438-6375 with
instructions on how you wish to receive your sale
proceeds.
A telephone redemption request must be received by 3:00
p.m., Central Time, for you to receive that day's NAV.
You may have the proceeds mailed to your address, or
mailed or sent electronically to a commercial bank
account previously designated on your Account
Application.
Telephone redemption is not available for shares held
in nominee or street name accounts, or retirement plan
accounts.
If you are unable to contact the Funds by telephone,
you may also mail the redemption request to the Funds
at the address listed above. The telephone redemption
option will be unavailable for a period of 10 days
following a telephonic address change.
-27-
<PAGE>
BY CHECK:
A free check writing service is available for the Money
Market Funds. To establish this service and obtain
checks:
- at the time the account is opened, complete the
Signature Card section of the Account Application
Form; or
- after opening an account in the Fund, contact the
Funds by telephone or mail to obtain an Account
Application Form, and complete and return the
Signature Card section.
You will receive the dividends and distributions
declared on the shares to be redeemed up to the day
that a check is presented for payment. Upon 30 days'
prior written notice to you, the check writing
privilege may be modified or terminated. You may not
close a Fund account by writing a check. There is a $25
charge for each stop payment request.
AUTO WITHDRAWAL The Auto Withdrawal Plan enables you, as a shareholder
PLAN of a Fund, to make regular monthly or quarterly
redemptions of shares. With your authorization, the
Transfer Agent will automatically redeem shares at NAV
on the dates of the withdrawal and have a check in the
amount specified mailed to you or automatically
deposited into your bank account. In order to
participate:
- the required minimum withdrawal is $100; and - the
Fund must maintain a $1,000 minimum balance.
To participate in the Auto Withdrawal Plan, you should
call (800) 438-6375 for more information.
AUTOMATIC The Funds reserve the right to redeem, at NAV, the
REDEMPTION shares of any shareholder if, because of redemptions of
shares by or on behalf of the shareholder (but not as a
result of a decrease in the market price of such
shares), the account of such shareholder has a value of
less than $500. Before the Funds exercise their right
to redeem these shares, the shareholder will be given
notice that the value of the shares in his or her
account is less than the minimum amount and will be
allowed 60 days to make an additional investment that
will increase the value of the account to at least
$500.
If you elect to receive distributions in cash, and
checks (1) are returned and marked as "undeliverable"
or (2) remain uncashed for six months, your cash
election will be changed automatically and your future
dividend and capital gains distributions will be
reinvested in the Fund at the per share NAV determined
as of the date of payment of the distribution. In
addition, any undeliverable checks or checks that
remain uncashed for six months will be canceled and
will be reinvested in the Fund at the per share NAV
determined as of the date of cancellation.
-28-
<PAGE>
DIVIDENDS, DISTRIBUTIONS, AND TAXES
DIRECT DIVIDEND You may elect to have all income dividends and capital
OPTION gains distributions paid by check or reinvested in any
other Fund, (provided the other Fund is maintained at
the minimum required balance).
The Directed Dividend Option may be modified or
terminated by the Funds at any time after notice to
participating shareholders. Participation in the
Directed Dividend Option may be terminated or changed
by the shareholder at any time by writing the
distributor. The Directed Dividend Option is not
available to participants in an IRA.
DIVIDENDS AND The Limited Term Bond, Bond, Income and Municipal Bond
CAPITAL GAINS Funds each intend to declare their net investment
income monthly as a dividend to shareholders at the
close of business on the day of declaration. The Money
Market Funds intend to declare net investment income
daily as a dividend to shareholders at the close of
business on the day of declaration. These Funds will
generally pay such dividends monthly.
The Balanced, Equity, and Aggressive Growth Funds
intend to declare their net investment income quarterly
as a dividend to shareholders at the close of business
on the day of declaration, and generally will pay such
dividends quarterly.
Each Fund also intends to distribute its capital gains,
if any, at least annually, normally in December of each
year. A shareholder will automatically receive all
income dividends and capital gains distributions in
additional full and fractional shares of a Fund at NAV
as of the ex-dividend date, unless the shareholder
elects to receive dividends or distributions in cash.
Such election must be made on the Account Application;
any change in such election must be made in writing to
the Funds at Dept. L-1392, Columbus, Ohio 43260-1392
and will become effective with respect to dividends and
distributions having record dates after its receipt by
the Transfer Agent. Dividends are paid in cash not
later than seven business days after a shareholder's
complete redemption of his or her shares.
TAX CONSIDERATIONS Dividends that are distributed by a Fund that are
derived from interest income exempt from federal income
tax and are designated by the Fund as "exempt-interest
dividends" will be exempt from regular federal income
taxation. However, if tax-exempt interest earned by the
Fund constitutes an item of tax preference for purposes
of the AMT, then a portion of the exempt-interest
dividends paid by the Fund may likewise constitute an
item of tax preference. In addition, any
exempt-interest dividends received by corporate
shareholders may constitute an adjustment to AMT income
for purposes of the AMT and the environmental tax
imposed under Code Sections 55 and 59A, respectively.
Only the Municipal Bond and Municipal Assets Funds are
expected to be eligible to designate certain dividends
as "exempt-interest dividends."
-29-
<PAGE>
Exempt-interest dividends of a Fund, although exempt
from regular federal income tax, are included in the
tax base for determining the extent to which Social
Security and railroad benefits will be subject to
federal income tax. All shareholders are required to
report the receipt of dividends and distributions,
including exempt-interest dividends, on their federal
income tax returns.
Dividends paid out of a Fund's investment company
taxable income (including dividends, taxable interest
and net short-term capital gains) will be taxable to a
U.S. shareholder as ordinary income. A portion of the
Balanced, Equity, and Aggressive Growth Funds income
may consist of dividends paid by U.S. corporations.
Therefore, a portion of the dividends paid by these
Funds may be eligible for the corporate
dividends-received deduction. Distributions of net
capital gains (the excess of net long-term capital
gains over net short-term capital losses), if any,
designated by a Fund as capital gain dividends are
taxable as long-term capital gains, regardless of the
length of time the shareholder has held a Fund's
shares.
A distribution will be treated as paid on December 31
of the current calendar year if it is declared by a
Fund in October, November or December of that year to
shareholders of record on a date in such a month and
paid by a Fund during January of the following calendar
year. Such distributions will be treated as received by
shareholders in the calendar year in which the
distributions are declared, rather than the calendar
year in which the distributions are received.
Each year the Funds will notify shareholders of the tax
status of dividends and distributions.
Shareholders should be aware that redeeming shares of
the Municipal Bond Fund after tax-exempt interest
income has been accrued by the Fund but before that
income has been declared as a dividend may be
disadvantageous. This is because the gain, if any, on
the redemption will be taxable, even though such gain
may be attributable in part to the accrued tax-exempt
interest which, if distributed to the shareholder as a
dividend rather than as redemption proceeds, might have
qualified as an exempt-interest dividend.
Distributions from all of the Funds may be subject to
state and local taxes. Distributions of a Fund that are
derived from interest on U.S. Government securities may
be exempt from state and local taxes in certain states.
In certain states, distributions of the Municipal Bond
and Municipal Assets Funds which are derived from
interest on obligations of that state or its
municipalities or any political subdivisions may be
exempt from state and local taxes. Shareholders should
consult their tax advisors regarding the possible
exclusion for state and local income tax purposes of
the portion of dividends paid by a Fund which is
attributable to interest from U.S. Government
securities and the particular tax consequences to them
of an investment in a Fund, including the application
of state and local tax laws.
-------------------------------------------------------
SHORT- OR LONG-TERM? If you sell or exchange your Fund
shares within 12 months of buying them, you will
receive a short-term capital gain. Any sale or exchange
beyond that time will generate a long-term capital
gain.
-30-
<PAGE>
DISTRIBUTION ARRANGEMENTS
SHARE CLASSES In addition to the shares generally offered for
investment, some of the Funds offer special classes of
shares. Each class of shares is exchangeable only for
shares of the same class.
SHARE CLASS CLASS DESCRIPTION
"S" and "S2" These shares are normally offered
through financial institutions
providing automatic "Sweep"
investment programs to their
customers. These shares bear
separate distribution and/or
shareholder servicing fees.
Participating organizations selling
or servicing these shares may
receive different compensation with
respect to one class over another.
The Liquid Assets Fund, Municipal
Assets Fund and Government Assets
Fund offer Class S shares while
only the Liquid Assets Fund offers
Class S2 shares.
"S" Shares of These shares are offered to all
the Equity Fund shareholders, except those who
qualify for "T" shares.
"T" Shares of These shares are offered solely to
the Equity Fund fiduciary accounts of AMCORE
Investment Group, N.A. over which
AMCORE Investment Group, N.A.
exercises investment discretion.
"T" These shares are offered by to the
Money Market Funds. These shares
offer a check writing privilege and
are also offered through trust
organizations or others providing
shareholder services such as
establishing and maintaining
custodial accounts and records for
their customers who invest in "T"
shares, assisting customers in
processing purchase, exchange and
redemption requests and responding
to customers' inquiries concerning
their investments, though they may
also be used in "sweep" programs.
These shares bear separate
distribution and/or shareholder
servicing fees. Participating
organizations selling or servicing
these shares may receive different
compensation with respect to one
class over another.
"I" These shares are offered by the
Liquid Assets and Municipal Assets
Funds. These shares pay no
shareholder or servicing fees and
so are normally offered directly by
the distributor or through trust
organizations providing fiduciary
account services for an additional
fee.
OTHER EQUITY "S" SHARES. Depending upon the terms of the
particular Customer account, a Participating
Organization may charge a Customer account fees for
services provided in connection with investments in a
Fund. Information concerning these services and any
charges will be provided by the Participating
Organization. This Prospectus should be read in
conjunction with any such information provided by the
Participating Organization.
RULE 12b-1 FEES. Each Fund, except the Money Market
Funds, has adopted a plan under SEC Rule 12b-1 that
allows the Fund to pay asset-based distribution and
service fees for the distribution and sale of its
shares. All of the Funds' plans allow charges of up to
0.25% but no 12b-1 fees are currently being imposed
under the plan.
ADMINISTRATIVE SERVICE FEES. Each Fund, except Liquid
Assets Fund Class I shares and Municipal Assets Fund
Class I shares, has adopted a plan under the
Administrative Services Plan that allows the Fund to
pay service fees for the distribution and sale of its
shares. The Government Assets Fund plan allows charges
of up to .25% but no fees are currently being imposed
under the plan. The Liquid Assets Fund T shares and
the Municipal Assets Fund T shares plans allow charges
of up to .25% but only .15% is currently being imposed
under each plan. The Vintage Equity Fund Class S
shares plan allows charges of up to .25% and .25% is
currently being imposed under the plan. All of the
other Funds' plans allow charges of up to .25% but no
fees are currently being imposed under the plans.
-31-
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
-32-
<PAGE>
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you
understand the Fund's financial performance for the
past 5 years (or, if shorter, the period of the Fund's
operations). Certain information reflects financial
results for a single Fund share. The total returns in
the table represent the rate that an investor would
have earned (or lost) on an investment in the Fund
(assuming reinvestment of all dividends and
distributions). The information for the period ended on
March 31, 1999, has been audited by McGladrey & Pullen,
LLP, whose report, along with the Fund's financial
statements, are included in the Funds' annual report,
which is available upon request. The information for
the period ended on March 31, 1998, has been audited by
KPMG Peat Marwick LLP. The information for the Liquid
Assets Fund, Municipal Assets Fund, and Bond Fund for
the period ended on or prior to March 31, 1997, has
been audited by KPMG Peat Marwick. The information for
all other Funds for the periods ended on or prior to
March 31, 1997, has been audited by Ernst & Young LLP.
-33-
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS
--------------------------------------------------- ----------------------------------------
NAV NET NET REALIZED/ TOTAL FROM FROM NET FROM NET TOTAL
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT REALIZED DIVIDENDS AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND "T" SHARES
Year Ended March 31, 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 "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 "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)
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)
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 SHARES
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 FUND
Year Ended March 31, 1999 $16.99 (0.11) 1.70 1.59 0.00 (0.95) (0.95)
Year Ended March 31, 1998 $11.90 (0.09) 5.61 5.52 0.00 (0.43) (0.43)
Year Ended March 31, 1997 $10.88 (0.06) 1.08 1.02 0.00 0.00 0.00
Sept. 29, 1995 to March 31, 1996* $10.00 0.00 0.90 0.90 0.00 (0.02) (0.02)
</TABLE>
* Period from commencement of operations.
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
(c) Includes $.04 per share and $.02 per share of distributions in excess of net
investment income for Limited Term Bond Fund and Income Fund, respectively,
for year ended March 31, 1998.
(d) Includes $.01 per share of distribution in excess of net investment income.
-34-
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------------
RATIO OF NET RATIO OF
RATIO OF INVESTMENT RATIO OF NET INVESTMENT
NAV NET ASSETS EXPENSES TO INCOME EXPENSES INCOME
END OF TOTAL END OF PERIOD TO AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE PORTFOLIO
PERIOD RETURN (000 OMITTED) NET ASSETS NET ASSETS NET ASSETS** NET ASSETS** TURNOVER
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND "T" SHARES
Year Ended March 31, 1999 $ 1.00 4.61% $150,006 0.73% 4.49% 0.76% 4.46% N/A
Year Ended March 31, 1998 $ 1.00 4.72% $155,130 0.73% 4.79% 0.98% 4.54% N/A
Year Ended March 31, 1997 $ 1.00 4.62% $158,698 0.76% 4.53% 1.01% 4.28% N/A
Year Ended March 31, 1996 $ 1.00 5.24% $153,836 0.54% 5.08% 0.72% 4.90% N/A
Year Ended March 31, 1995 $ 1.00 4.32% $137,888 0.50% 4.26% 0.98% 3.78% N/A
LIQUID ASSETS FUND "T" SHARES
Year Ended March 31, 1999 $ 1.00 4.70% $33,673 0.84% 4.54% -- -- N/A
Nine Months Ended March 31, 1998 $ 1.00 3.81%(a) $16,147 0.70%(b) 5.07%(b) -- -- N/A
January 2, 1997 to June 30, 1997* $ 1.00 2.51%(a) $17,859 0.70%(b) 4.96%(b) -- -- N/A
LIQUID ASSETS FUND "I" SHARES
Year Ended March 31, 1999 $ 1.00 4.86% $ 16,751 0.69% 4.67% -- -- N/A
Nine Months Ended March 31, 1998 $ 1.00 3.98%(a) $ 13,729 0.47%(b) 5.31%(b) -- -- N/A
October 29, 1996 to June 30, 1997* $ 1.00 3.51%(a) $ 2,356 0.45%(b) 5.19%(b) -- -- N/A
MUNICIPAL ASSETS FUND "T" SHARES
Year Ended March 31, 1999 $ 1.00 2.73% $14,949 0.87% 2.66% 0.94% 2.59% N/A
Nine Months Ended March 31, 1998 $ 1.00 2.31%(a) $12,005 0.69%(b) 3.09%(b) -- -- N/A
January 2, 1997 to June 30, 1997* $ 1.00 1.61%(a) $25,036 0.66%(b) 3.17%(b) 0.90% 2.93% N/A
MUNICIPAL ASSETS FUND "I" SHARES
Year Ended March 31, 1999 $ 1.00 2.88% $ 22,405 0.72% 2.81% 0.79% 2.74% N/A
Nine Months Ended March 31, 1998 $ 1.00 2.49%(a) $ 20,010 0.46%(b) 3.32%(b) -- -- N/A
March 27, 1997 to June 30, 1997* $ 1.00 1.20%(a) $ 7 0.41%(b) 3.42%(b) 0.65% 3.18% N/A
LIMITED TERM BOND FUND
Year Ended March 31, 1999 $10.00 5.01% $56,005 1.05% 4.89% -- -- 31.08%
Year Ended March 31, 1998 $ 9.99 8.51% $37,777 1.35% 4.60% 1.60% 4.35% 80.26%
Year Ended March 31, 1997 $ 9.69 3.13% $38,835 1.40% 5.18% 1.65% 4.93% 70.63%
June 15, 1995 to March 31, 1996* $ 9.89 3.40%(a) $41,178 1.18%(b) 5.53%(b) 1.18%(b) 5.53%(b) 69.30%
BOND FUND
Year Ended March 31, 1999 $ 9.88 5.95% $21,984 1.03% 5.46% -- -- 37.28%
Eleven Months Ended March 31, 1998 $ 9.86 10.30%(a) $ 7,213 0.88%(b) 7.66%(b) -- -- 225.79%
Year Ended April 30, 1997 $ 9.83 6.97% $ 3,201 0.83% 6.16% -- -- 42.22%
July 7, 1995 to April 30, 1996* $ 9.78 2.10%(a) $ 3,642 0.80%(b) 6.24%(b) -- -- 60.43%
INCOME FUND
Year Ended March 31, 1999 $9.98 5.13% $100,341 1.01% 5.51% -- -- 60.60%
Year Ended March 31, 1998 $10.04 9.31% $104,604 1.15% 5.04% 1.40% 4.79% 52.03%
Year Ended March 31, 1997 $ 9.70 3.14% $92,031 1.20% 5.52% 1.45% 5.27% 59.70%
Year Ended March 31, 1996 $ 9.93 8.74% $84,752 0.97% 5.77% 0.97% 5.77% 113.25%
Year Ended March 31, 1995 $ 9.71 3.46% $81,673 0.94% 5.53% 1.22% 5.26% 32.38%
MUNICIPAL BOND FUND
Year Ended March 31, 1999 $10.67 4.64% $49,950 0.94% 3.76% 1.04% 3.66% 13.87%
Year Ended March 31, 1998 $10.60 7.89% $48,282 1.21% 3.76% 1.46% 3.51% 36.60%
Year Ended March 31, 1997 $10.22 3.22% $45,164 1.28% 3.68% 1.53% 3.43% 21.00%
Year Ended March 31, 1996 $10.27 7.43% $42,436 0.75% 4.21% 1.02% 3.94% 14.21%
Year Ended March 31, 1995 $ 9.97 5.29% $30,717 0.73% 4.42% 1.30% 3.84% 5.77%
BALANCED FUND
Year Ended March 31, 1999 $16.01 12.66% $85,424 1.28% 1.61% -- -- 48.38%
Year Ended March 31, 1998 $15.05 33.46% $63,403 1.38% 1.58% 1.63% 1.33% 101.32%
Year Ended March 31, 1997 $11.72 11.05% $32,012 1.55% 1.58% 1.80% 1.33% 38.35%
June 1, 1995 to March 31, 1996* $11.08 13.29%(a) $13,516 1.32%(b) 2.66%(b) 1.32%(b) 2.66%(b) 61.72%
EQUITY FUND "S" SHARES
Year Ended March 31, 1999 $22.90 15.72% $253,593 1.40% (0.34%) -- -- 59.22%
Year Ended March 31, 1998 $21.05 45.54% $196,772 1.31% 0.08% 1.56% 0.33% 72.80%
Year Ended March 31, 1997 $16.58 18.35% $309,669 1.33% 0.32% 1.58% 0.07% 37.08%
Year Ended March 31, 1996 $14.48 29.96% $210,950 1.09% 0.96% 1.09% 0.96% 33.23%
Year Ended March 31, 1995 $11.44 15.74% $149,233 1.07% 1.47% 1.35% 1.19% 20.54%
EQUITY FUND T SHARES
Year Ended March 31, 1999 $22.94 15.88% $280,418 1.15% (0.08%) -- -- 59.22%
February 14, 1998 to March 31,
1998* $21.05 6.40%(a) $275,245 1.19%(b) 0.63%(b) 1.44%(b) 0.38%(b) 72.80%
AGGRESSIVE GROWTH FUND
Year Ended March 31, 1999 $17.63 9.85% $121,552 1.42% (0.69%) -- -- 61.90%
Year Ended March 31, 1998 $16.99 46.82% $101,377 1.56% (0.74%) 1.81% (0.99%) 86.36%
Year Ended March 31, 1997 $11.90 9.39% $ 49,413 1.63% (0.64%) 1.88% (0.89%) 45.14%
Sept. 29, 1995 to March 31, 1996* $10.88 9.10%(a) $ 23,319 1.57%(b) 0.08%(b) 1.57%(b) 0.08%(b) 4.31%
</TABLE>
