INSTITUTIONAL RESERVES FUND
STATEMENT OF PORTFOLIO INVESTMENTS (Unaudited)
September 30, 2000
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
---------------------- -------------------------------------------------------------------------------- --------------------
<S> <C> <C>
Trust Certificates--U.S. Govt. Guaranteed Student Loans (57.67%):
9,000,000 6.73% *** 9,000,000
Repurchase Agreements (42.29%):
Bear Stearns:
6,598,777 6.65% 10/02/00 6,598,777
--------------------
Total Investments in Securities (99.96%)
(Cost--$15,598,777) . $15,598,777
Other Assets & Liabilities (.04%) . 6,431
--------------------
Net Assets (100.00%) . $15,605,208
====================
------------------------------------------
*** Interest rate fluctuates with 3-month U.S. Treasury bill rate. Put option subject
to no longer than 7-day settlement.
</TABLE>
<TABLE>
<CAPTION>
INSTITUTIONAL RESERVES FUND
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2000
<S> <C>
ASSETS:
Investments, at value $9,000,000
Repurchase agreements 6,598,777
------------------
------------------
Total Investments 15,598,777
Cash 1
Interest and dividends receivable 104,538
------------------
------------------
Total Assets 15,703,316
------------------
------------------
LIABILITIES:
Dividends payable 79,876
Accrued expenses and other payables:
Administration fees 7,905
Accounting fees 1,921
Transfer Agency fees 3,843
Other 4,563
------------------
------------------
Total Liabilities 98,108
------------------
------------------
NET ASSETS: 15,605,208
==================
==================
COMPOSITION OF NET ASSETS:
Paid-in capital 15,605,208
------------------
------------------
Net Assets $15,605,208
==================
==================
Capital Shares
Net assets outstanding $15,605,208
==================
==================
Shares outstanding, $.001 par value 15,605,208
==================
==================
Net asset value--offering and redemption price per share $1.00
==================
==================
</TABLE>
INSTITUTIONAL RESERVES FUND
STATEMENT OF OPERATIONS (Unaudited)
Period from May 3, 2000* through September 30, 2000
INVESTMENT INCOME:
Interest income $558,608
EXPENSES:
Investment advisory fees 30,378
Administration fees 18,227
Custody fees 573
Accounting fees 2,604
Legal fees 1,088
Audit fees 1,374
Directors' fees 458
Transfer agency fees 5,208
Registration and filing fees 229
Printing fees 1,603
Other 401
-------------------
-------------------
Total Expenses 62,142
Less: Expenses voluntarily reduced/waived (42,745)
-------------------
-------------------
Net Expenses 19,397
-------------------
-------------------
Net Investment Income $539,211
===================
===================
*Date of inception.
INSTITUTIONAL RESERVES FUND
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
Period from May 3, 2000* through September 30, 2000
Change in Net Assets resulting from Operations:
Net investment income earned $539,211
------------------
------------------
Change in Net Assets from Shareholder Distributions:
Net investment income distributed (539,211)
------------------
------------------
Capital Share Transactions:
Issued:
Capital Shares 75,450,000
Reinvestments:
Capital Shares 436,394
Redemptions:
Capital Shares (60,281,186)
------------------
------------------
Change in net assets from capital transactions 15,605,208
------------------
------------------
Change in net assets 15,605,208
Net Assets:
Beginning of period 0
------------------
------------------
End of period $15,605,208
==================
==================
*Date of inception.
INSTITUTIONAL RESERVES FUND
Notes to Financial Statements (Unaudited)
September 30, 2000
1. Organization:
Vintage Mutual Funds, Inc. is registered under the Investment Company Act of
1940 (the "1940 Act"), as amended, as a diversified open-end management
investment company. The accompanying financial statements and financial
highlights are those of the Institutional Reserves Fund (the "Fund"), one of
eleven investment portfolios within the Vintage Fund family. The Fund's
investment objectives are safety of principal and liquidity, and to the extent
of those objectives, maximum current income. The Fund pursues its objectives by
investing in high-quality money market obligations.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Fund in the preparation of the financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
Securities Valuation
Investments of the Fund are valued at amortized cost, which approximates market
value. Under the amortized cost method of valuation, discount or premium is
amortized on a constant basis to the maturity of the security. In addition, the
money market funds may not (a) purchase any instrument with a remaining maturity
greater than 397 days unless such investment is subject to a demand feature, or
(b) maintain a dollar-weighted-average portfolio maturity which exceeds 90 days.
Security Transactions and Related Income
Security transactions are accounted for on the date the security is purchased or
sold ("trade date"). Interest income is recognized on the accrual basis.
Original issue discounts and premiums on securities purchased are amortized over
the expected life of the respective securities. Dividends are recorded on the
ex-dividend date. Gains or losses realized on sales of securities are determined
on the identified cost basis.
Repurchase Agreements
The Funds may engage in repurchase agreements with financial institutions such
as banks, brokers, or dealers that the investment adviser, Investors Management
Group, ("IMG"), deems creditworthy under guidelines approved by the Fund's Board
of Directors, subject to the seller's agreement to repurchase such securities at
a mutually agreed-upon date and price. An independent custodian must receive
delivery of the underlying securities. The market value of these securities
(including accrued interest) on acquisition date is required to be an amount
equal to 102% of the resale price, and will not be less than 100% of the resale
price over the term of the agreement. The repurchase price generally equals the
price paid plus interest negotiated on the basis of current short-term rates,
which may be more or less than the rate on the underlying portfolio securities.
The seller, under an agreement to repurchase, is required to maintain, with the
Fund's custodian, the value of collateral held pursuant to the agreement at not
less than the repurchase price (including accrued interest). Securities subject
to repurchase agreements are held by the Fund's custodian, another qualified
custodian or in the Federal Reserve/Treasury book-entry system.
Trust Certificates
The Fund may invest in U. S. Government Guaranteed Student Loans (the Trust)
which represent interests in student loans sold by financial institutions
subject to repurchase on no more than five days' written notice. Each financial
institution providing an unconditional repurchase commitment will have one or
more ratings in the highest category for short-term securities, which indicates
the issuer has the greatest capacity for timely payment.
Securities Purchased on a When-Issued of Delayed-Delivery Basis
The fund may purchase securities on a when-issued or delayed-delivery basis.
When-issued securities are securities purchased with delivery to occur at a
later date at a stated price and/or yield, thereby involving the risk that the
price and/or yield obtained may be more or less than those available in the
market when delivery takes place. At the time the Fund makes commitment to
purchase a security on a when-issued basis, the Fund records the transaction and
reflects the value of the security in determining net asset value. A segregated
account is established and the Fund maintains cash and marketable securities at
least equal in value to commitments for when-issued securities.
Dividends to Shareholders
Dividends from net investment income are declared daily and paid monthly for the
Fund. Distributable net realized capital gains, if any, are declared and
distributed at least annually for each the Fund.
Federal Taxes
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute taxable
income to shareholders in amounts that will avoid or minimize federal income or
excise taxes of the Fund. Net investment income and net realized gains (losses)
for the Fund may differ for financial statement and tax purposes. The character
of distributions made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the income or
realized gains (losses) were recorded by the Fund.
Expenses
Expenses directly related to the Fund are charged to the Fund. The Fund is
allocated a portion of the expenses relating to the Vintage Mutual Funds, Inc.
collectively, which is prorated to the Fund on the basis of its net assets
relative to the total assets of the Vintage Mutual Funds, Inc. family.
3. Related Party Transactions:
Under the terms of its Investment Advisory Agreement, Investors Management Group
(IMG), a wholly owned subsidiary of AMCORE Financial, Inc., is entitled to
receive fees at an annual rate of 0.35 percent, computed daily on a percentage
of the average daily net assets of the Fund. IMG voluntarily waived all advisory
fees from May 3, 2000, through October 4, 2000. Beginning October 5, 2000, IMG
voluntarily waives 0.10 percent of the advisory fee.
The Fund has entered into a management and administration agreement with IMG
pursuant to which the Fund pays administrative fees at an annual rate of 0.21
percent of the Fund's average daily net assets. These fees were voluntarily
waived from May 3, 2000, through July 2, 2000.
IMG serves as the Fund's transfer agent to the Fund, pursuant to a transfer
agency agreement with the Funds and receives a fee of 0.06 percent of the
average daily net assets of the Fund for such services. IMG voluntarily waived
all transfer agency fees from May 3, 2000, through May 31, 2000. IMG also
provides fund accounting services for the Funds pursuant to a fund accounting
agreement and receives a fee of 0.03 percent of the average daily net assets of
the Fund for such services. IMG voluntarily waived all fund accounting fees from
May 3, 2000, through May 31, 2000.
INSTITUTIONAL RESERVES FUND
FINANCIAL HIGHLIGHTS (Unaudited)
Period from May 3, 2000* through September 30, 2000
Selected Data for a Share Outstanding
Throughout Each Period:
SHARES
------------------------
------------------------
Net Asset Value Beginning of Period $1.000
Net Investment Income 0.026
Dividends Distributed (0.026)
------------------------
------------------------
Net Asset Value End of Period $1.000
Total Return 2.58%
Ratio of Expenses to Average Net Assets 0.22%
Ratio of Net Income to Average Net Assets 6.24%
Net Assets End of Period $15,605,208
*Date of inception.
