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Previous: VINTAGE MUTUAL FUNDS INC, NSAR-A, EX-27, 2000-11-29 |
Next: XBOX TECHNOLOGIES INC, NT 10-K, 2000-11-29 |
VINTAGE MUTUAL FUNDS
SEMI-ANNUAL REPORT TO SHAREHOLDERS
SEPTEMBER 30, 2000
MESSAGE FROM THE PRESIDENT Vintage Mutual Funds, Inc.
Dear Shareholders:
The words diversification, strong fundamentals and long term investing have been
the investing mantra of our Vintage Fund Managers for years. But never have
these words seemed more astute and appropriate than now, as we look back at the
stock market over the six-month period ending September 30, 2000. The market, as
measured by the S&P 500, has been volatile, but it has essentially treaded water
for the past several months.
While our investment philosophy remains steady, we are positioning ourselves to
take better advantage of this volatile market, specifically within the
technology sector. Over the last six months, we have spent countless hours
researching, filing legal documents and raising funds to open AMCORE's Vintage
Technology Fund on October 16, 2000. This will be our first foray into a single
sector fund, and we look forward to taking advantage of our investment team's
expertise in technology infrastructure and biotechnology stocks. The Technology
Fund will give us the opportunity to be a bigger player in this sector, which
has been the Tiger Woods of the stock market since 1997 with no other sector
even in the race for first place.
In the September 18th issue of Crain's Chicago Business, an interesting article
ran featuring our Aggressive Growth Fund and Thomas H. Bolgert, Vice President
and Fund Manager. The article talked about the positive effects of AMCORE's move
into more aggressive equity funds. We describe the Vintage Funds as "the
Midwest's best kept secret," but with this article and anticipated public
relations efforts in 2001, we won't be a secret for long.
The next few months will be filled with introducing and growing our new
Technology Fund. We are constantly examining methods to better service and add
value for current and prospective Vintage shareholders. Included in this search
are online account access, trading and other interactive services to the
VintageFunds.com Web site. As technology and the Internet come more easily into
our homes and into our handheld devices, we want to make certain that you, our
shareholders, can easily access your Vintage account information. Our goal is to
have you click on our Web site, press a button on your cell phone, or step into
any AMCORE branch and have immediate access to your Vintage Fund shareholder
information.
Thank you for your support, we continue to strive towards providing you with
excellent investment management and personal service.
Sincerely,
David W. Miles
President
The Vintage Mutual Funds are distributed by BISYS Fund Services Limited
Partnership.
Shares of the Vintage Mutual Funds are NOT INSURED BY THE FDIC and are not
deposits or obligations of, or guaranteed or endorsed by, AMCORE Financial Inc.,
or any of its subsidiaries including Investors Management Group. Investment
products involve investment risk, including the possible loss of principal. Past
performance is not predictive of future results, and the composition of each
Fund's portfolio is subject to change.
For more complete information on any of the Vintage Mutual Funds, including
fees, expenses and sales charges, please call 1-800-438-6375 for a free
prospectus. Please read it carefully before investing or sending money.
<PAGE>
MESSAGE FROM THE INVESTMENT ADVISER Vintage Mutual Funds, Inc.
Dear Shareholders:
The year 2000 will most likely be remembered as one of transition for the U.S.
domestic markets. Stock returns have been volatile and bonds have performed
reasonably well, both responding to the will of the Federal Reserve as it
engineers an economic slow down.
Bonds have performed nicely through the 3rd quarter in concert with the Fed's
efforts to slow the pace of growth to more sustainable levels. While short term
yields rose, with Fed tightenings prevalent during the first half of the year,
intermediate and longer dated bonds actually rallied modestly. In fact, bonds
have out performed stocks for the 9 months ending September 30, 2000.
On the other hand, a confluence of factors left the stock market on shaky ground
as the quarter came to a close. These factors include oil, the strong dollar,
earnings, the election, and of course, the soft landing.
Global conditions have heightened uncertainty. Crude oil prices surged to
10-year highs during the quarter. Although the price of crude oil eased somewhat
at the end of the quarter, the stock market remains nervous that higher oil
prices could ultimately impact inflation. Recent unrest in the Mid-east has
heightened this uncertainty. Also the weakening of the Euro against the dollar
has negatively impacted currency translation and repatriation of foreign
earnings of U.S. domestic firms.
Indeed, earnings expectations have recently declined, due to this currency
translation effect and more importantly due to the anticipated effects of the
slowdown. Several negative 3rd quarter announcements triggered sharp sell-offs.
Our belief is that the economic "landing" will not be "hard", that the expansion
will continue for some time, and that quarter end price action may indicate that
the markets may have over-reacted to this slowing.
The good news for investors is that the Federal Reserve will most likely hold
interest rates steady for the balance of the year. Further, although energy
prices have spiked, the overall inflation rate has ticked up only slightly. And
significantly, the positive impact of productivity gains--which can be sustained
by slowing--has come to be viewed as a genuinely constructive influence on
inflation. In the mean time, the impact of the new administration in Washington,
while potentially significant, will not likely be felt until after policy
changes can be enacted into legislation.
In the quarters ahead, while certainly not guaranteed, stock returns will most
likely return to positive territory--albeit reverting to more normal less
spectacular levels. And bonds will as always react to the vicissitudes of the
growth pace of the economic expansion--soon to enter yet another record year.
Conditions could turn positive, providing the investor with opportunity in the
months ahead.
Sincerely,
Jay H. Evans
Chief Investment Officer
Investors Management Group
<PAGE>
PERFORMANCE REPORT Vintage Mutual Funds, Inc.
The Vintage Money Market Funds
With the Federal Reserve either tightening interest rates or maintaining a
tightening bias, short term interest rates were on the incline into the Summer
months. The Fed's interest was to engineer a slow down in the U.S. economy as it
strove for a "soft landing" rather than the usual "hard" recession that usually
follows expansionary periods. During this time period, the yields offered
investors by the Vintage Money Market Funds generally rose.
The Government Assets Fund
The increase in short term rates this year has positively impacted the yield on
this fund. We have maintained a shorter than average maturity relative to our
peer group to benefit from reinvestment opportunities at higher levels. We
continue to maintain this posture as inflation concerns and labor pressures
remain in the economy. We continue to focus on government agency debt where
yields remain attractive relative to treasuries.
The Liquid Assets Fund
The bond market truly believes that the Federal Reserve has engineered a soft
landing. While intermediate rates have declined to compensate for an expected
change in monetary policy, short-term interest rates have risen. During the
quarter 3-month bills rose about 30 basis points to 6.20%. This increase in
short-term yields has directly effected the returns of the Liquid Assets Fund.
The yield on the fund is also up about 15 basis points for the quarter. We have
strategically maintained the portfolio's average maturity shorter than its peers
to benefit from better reinvestment opportunities as interest rates rise. We
continue to maintain this posture as inflation concerns and labor pressures
build in the economy. Our focus on new purchases has been in the short-term
corporate bond market where yields remain attractive.
The Municipal Assets Fund
Short-term municipal yields rose during the quarter helping to push the yield on
the Municipal Assets Fund higher by about one-half of a percent. Higher supply
in the municipal market coupled with less demand offered a great environment for
short-term municipal buyers during the quarter. We have strategically maintained
a higher percentage of the fund in seven days or less maturity investments to
take advantage of higher municipal rates. We have slowly increased the average
days to maturity to capture the higher yields seen this quarter.
Although the Vintage Money Market Funds seek to maintain a stable net asset
value of $1.00, there is no assurance that they will be able to do so. The
Vintage Money Market Funds are neither insured nor guaranteed by the U.S.
Government.
<TABLE>
VINTAGE MUTUAL FUNDS, INC.
Government Assets Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
<CAPTION>
Par Value Description Value
----------------------------------------------------------------------------------------------------------------------------
<S> <C>
U.S. Government Agency (89.89%):
Federal Agricultural Mortgage Corporation:
$10,000,000 6.63%**, 10/03/00 $9,996,433
10,000,000 6.58%**, 10/05/00 9,992,845
10,000,000 6.63%**, 11/29/00 9,894,783
Federal Farm Credit Bank:
10,000,000 6.62%**, 10/17/00 9,971,467
Federal Home Loan Bank:
10,000,000 6.53%**, 10/13/00 9,978,767
10,000,000 6.08%*, 10/27/00 10,000,000
10,000,000 6.58%**, 11/01/00 9,944,889
10,000,000 6.63%**, 01/16/01 9,810,373
10,000,000 6.62%**, 01/30/01 9,786,233
Federal Home Loan Mortgage Corporation:
10,000,000 6.56%**, 11/21/00 9,909,475
4,000,000 6.58%**, 12/21/00 3,942,670
10,000,000 6.57%**, 12/21/00 9,856,900
Federal National Mortgage Association:
16,350,000 6.63%**, 10/12/00 16,317,888
10,000,000 6.56%**, 10/25/00 9,957,200
10,000,000 6.51%**, 11/09/00 9,930,558
6,425,000 6.57%**, 12/14/00 6,340,872
10,000,000 6.65%**, 01/26/01 9,792,000
----------------
Total U.S. Government Agency 165,423,353
----------------
Repurchase Agreements (10.33%):
Morgan Stanley Dean Witter:
19,016,147 6.45%**, 10/02/00 19,016,147
----------------
Total Investments in Securities (100.22%) (Cost--$184,439,500) $184,439,500
Other Assets and Liabilities (-0.22%) (411,986)
----------------
Net Assets (100.00%) $184,027,514
================
-----------------
* Denotes floating rate investment with interest rate as of September 30, 2000.
** Effective yield at date of purchase.
VINTAGE MUTUAL FUNDS, INC.
Liquid Assets Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Par Value Description Value
----------------------------------------------------------------------------------------------------------------------------
Loan Certificates--FmHA Guaranteed Loan Certificates (18.97%):
$26,693,116 6.25% to 7.25%*, 5/20/01 to 12/30/33 $26,693,116
--------------------
Trust Certificates- -U.S. Govt. Guaranteed Student Loans (3.55%):
5,000,000 6.93%***, 12/19/00 5,000,000
--------------------
Commercial Paper (18.95%):
Cooperative Association Tractor:
1,450,000 6.57%**, 10/12/00 1,447,107
1,775,000 6.56%**, 10/16/00 1,770,171
1,500,000 6.57%**, 10/23/00 1,494,014
Eagle Funding:
4,065,000 6.56%**, 10/05/00 4,062,051
Enterprise Funding:
2,000,000 6.55%**, 10/02/00 1,999,637
Grand Funding:
2,000,000 6.54%**, 10/06/00 1,998,192
2,150,000 6.55%**, 10/17/00 2,143,770
2,500,000 6.56%**, 10/17/00 2,492,744
Parker Hannifin
1,500,000 6.50%**, 10/02/00 1,499,730
Triple A1 Funding:
2,399,000 6.55%**, 10/02/00 2,338,576
5,431,000 6.56%**, 10/10/00 5,422,120
--------------------
Total Commercial Paper 26,668,112
--------------------
Corporates (39.28%):
Associates Corporation:
2,000,000 7.88%, 09/30/01 2,021,880
AT&T Capital Corporation:
2,500,000 6.75%, 12/01/00 2,500,667
1,500,000 6.67%, 03/08/01 1,498,084
Banc One:
4,550,000 6.21%, 10/25/00 4,549,711
Bank of America:
2,000,000 6.95%, 04/17/01 2,001,266
Caterpillar Finance Services:
1,000,000 5.81%, 10/11/00 999,664
1,000,000 5.12%, 11/01/00 998,786
Chrysler Financial:
5,000,000 4.95%, 10/10/00 4,998,469
CIT Group Holdings:
3,000,000 6.25%, 03/28/01 2,988,309
Continental Bank:
4,360,000 12.50%, 04/01/01 4,475,357
Ford Motor Credit:
2,000,000 6.25%, 11/08/00 1,998,594
General Motors:
2,000,000 9.63%, 12/01/00 2,010,529
1,000,000 9.63%, 12/01/00 1,004,924
Hydro-Quebec:
1,000,000 9.20%, 12/15/00 1,005,069
International Lease Finance:
3,330,000 6.76%, 01/12/01 3,330,886
John Deere Capital Corporation:
3,000,000 5.85%, 01/15/01 2,990,280
Mercantile Bancorporation:
2,000,000 6.80%, 06/15/01 2,000,412
RR Donnelley & Sons:
2,500,000 9.13%, 12/01/00 2,507,616
Rockwell International:
2,500,000 8.38%, 02/15/01 2,514,474
Walt Disney:
3,000,000 8.88%, 12/15/00 3,010,266
2,650,000 6.38%, 03/30/01 2,643,746
Wheeling Pittsburgh Corporation:
2,251,000 9.38%, 11/15/00 2,314,877
898,000 9.38%, 11/15/00 923,217
--------------------
Total Corporates 55,287,083
--------------------
Repurchase Agreements (18.31%):
Bear Stearns:
25,773,082 6.65%, 10/02/00 25,773,082
--------------------
Total Investments in Securities (99.06%) (Cost--$139,421,393) $139,421,393
Other Assets and Liabilities (0.94%) 1,320,912
--------------------
Net Assets (100.00%) $140,742,305
====================
----------------
* Interest rate fluctuates with prime rate. Put option subject no longer than
7-day settlement ** Effective yield at date of purchase.
*** Interest rate fluctuates with 3-month U.S. Treasury bill rate. Put option
subject to no longer than 7-day settlement.
VINTAGE MUTUAL FUNDS, INC.
Municipal Assets Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Par Value Description Value
---------------------------------------------------------------------------------------------------------------------------
Industrial Development Bonds (2.77%)
Iowa (2.77%)
$146,892 Iowa HFA (Starr-Terry Project), 5.31%**, 05/15/05 $146,892
699,871 Sioux City, IA (Handy Partnership), 4.81%**, 09/15/04 699,871
147,767 Vinton, IA (Twin City Concrete), 5.04%**, 06/15/02 147,767
-----------------
Total Industrial Development Bonds 994,530
-----------------
Variable Rate Demand Obligations (66.11%)
Alabama (1.11%)
400,000 North Alabama PCR DTN, 5.55%*, 12/01/00 400,000
-----------------
Arizona (3.07%)
1,100,000 Apache Co., AZ IDA 7-Day, 5.60%**, 12/15/18 1,100,000
-----------------
Delaware (5.29%)
1,900,000 Delaware State Economic Development 7-Day, 5.70%**, 10/01/28 1,900,000
-----------------
Florida (3.90%)
1,000,000 Manatee Co., FL PCR DTN, 5.50%*, 09/01/24 1,000,000
400,000 Putnam Co., FL PCR DTN, 5.50%*, 09/01/24 400,000
-----------------
1,400,000
-----------------
Illinois (10.59%)
1,100,000 Chicago, IL G.O. 7-Day, 5.40%**, 01/01/12 1,100,000
400,000 McCook, IL St. Andrew Revenue 7-Day, 5.75%**, 12/01/21 400,000
1,800,000 Illinois Health Facility Authority (Carle Foundation) 7-Day, 5.60%**, 07/01/28 1,800,000
500,000 Illinois Health Facility Authority (Swedish Hospital) 7-Day, 5.55%**, 08/15/29 500,000
-----------------
3,800,000
-----------------
Iowa (2.23%)
800,000 Iowa Finance Authority Hospital Facilities Revenue 7-Day, 5.60%**, 07/01/13 800,000
-----------------
Kentucky (2.23%)
800,000 Kentucky Development Finance Authority 7-Day, 5.40%**, 12/01/15 800,000
-----------------
Michigan (0.56%)
200,000 Michigan State Strategic Funding DTN, 5.60%*, 09/01/30 200,000
-----------------
Missouri (3.90%)
1,400,000 Missouri Higher Education Loan Facility 7-Day, 5.50%**, 06/01/17 1,400,000
-----------------
New York (1.67%)
600,000 New York State Dormitory Authority 7-day, 5.55%**, 02/15/07 600,000
-----------------
North Carolina (3.62%)
1,300,000 North Carolina Medical Care Hospital 7-Day, 5.50%**, 10/01/23 1,300,000
-----------------
North Dakota (2.58%)
925,000 Grand Forks, ND Hospital Facilities DTN, 5.50%*, 12/01/16 925,000
-----------------
Ohio (2.79%)
400,000 Ohio Water Development Authority (Mead) DTN, 5.40%*, 11/01/15 400,000
600,000 Cuyoga County, OH, Hospital Revenue DTN, 5.40%*, 01/01/16 600,000
-----------------
1,000,000
-----------------
Oregon (21.39%)
500,000 Portland, OR Pollution Control Revenue DTN, 5.55%*, 12/01/09 500,000
-----------------
Pennsylvania (2.23%)
500,000 Lehigh County, PA Hospital DTN, 5.45%*, 07/01/28 500,000
300,000 Bucks County, PA IDA 7-Day, 4.45%**, 07/01/15 300,000
-----------------
800,000
-----------------
Texas (10.31%)
300,000 Grapevine, TX Industrial Development Series A1 DTN, 5.50%*, 12/01/24 300,000
700,000 Grapevine, TX Industrial Development Series A4 DTN, 5.50%*, 12/01/24 700,000
1,200,000 Harris Co., TX Series 88A 7-Day, 5.60%**, 06/01/05 1,200,000
500,000 Hunt Co., TX Industrial Development 7-Day, 5.45%**, 10/01/02 500,000
400,000 Lone Star, TX Airport Series A2 DTN, 5.50%*, 12/01/14 400,000
100,000 Lone Star, TX Airport Series B4 DTN, 5.50%*, 12/01/14 100,000
500,000 Lone Star, TX Airport Series B5 DTN, 5.50%*, 12/01/14 500,000
-----------------
3,700,000
-----------------
Utah (2.51%)
900,000 Salt Lake City, UT Revenue 7-Day, 5.60%**, 01/01/20 900,000
-----------------
Washington (6.13%)
400,000 Washington State Health Facility DTN, 5.50%*, 02/15/27 400,000
500,000 Port of Seattle, WA, IDC Airport Revenue 7-Day, 4.30%**, 12/01/09 500,000
500,000 Port of Vancouver, WA, Series 84A 7-Day, 5.60%**, 12/01/09 500,000
800,000 Port of Vancouver, WA, Series 84B 7-Day, 5.60%**, 12/01/09 800,000
-----------------
2,200,000
-----------------
Total Variable Rate Demand Obligations 23,725,000
-----------------
Municipal Bonds (26.48%)
Colorado (0.98%)
100,000 Fairlake, CO Metropolitan District, 3.50%, 12/01/00 99,871
250,000 Larimer Co., CO School District #R1, 10.00%, 12/01/00 252,216
-----------------
352,087
-----------------
Illinois (10.85%)
1,000,000 Berwyn, IL Capital Appreciation Series A, 4.43%***, 12/01/00 769,639
300,000 Chicago, IL Metropolitan Water Reclamation District, 4.80%, 12/01/00 300,214
200,000 Chicago, IL Board of Education, 5.00%, 12/01/00 200,192
230,000 Cook Co., IL High School District #205, 4.90%, 12/01/00 230,183
305,000 Forest Park, IL Park District, 6.20%, 12/01/00 306,035
185,000 Grundy Co., IL Public Building Commission, 4.65%, 12/01/00 185,000
500,000 Lake Co., IL Community College District #532, 9.00%, 11/01/00 501,970
1,000,000 Lake Co., IL Township High School District #113, 3.45%, 12/01/00 998,534
400,000 Sangamon Co., IL Certificates of Partnership, 6.40%, 12/01/00 401,319
-----------------
3,893,086
-----------------
Indiana (1.22%)
280,000 Haubstadt-Owensville Independent School District, IN, 7.00%, 01/15/01 287,574
150,000 Indiana State University Student Fee Revenue, 5.70%, 10/01/00 150,007
-----------------
437,581
-----------------
Iowa (0.28%)
100,000 Burlington, IA Corporate Purpose, 4.25%, 06/01/01 99,865
-----------------
Kentucky (0.97%)
100,000 Kentucky Higher Education Student Loan, KY, 4.70%, 12/01/00 100,047
250,000 Lexington-Fayette Urban County Government, 4.30%, 06/01/01 249,660
-----------------
349,707
-----------------
Michigan (3.62%)
200,000 Michigan Municipal Bond Authority Revenue, 4.50%, 12/01/00 200,056
400,000 Michigan State Hospital Finance Authority,7.38%, 02/15/01 412,016
200,000 Genesee County, MI Sewer Disposal System, 6.00%, 05/01/01 201,808
500,000 Oak Park, MI School District, 4.50%***, 06/01/00 485,388
-----------------
1,299,268
-----------------
Nebraska (1.68%)
200,000 Omaha, NE Sanitary Sewer Revenue, 5.10%, 01/15/01 200,362
400,000 Omaha Public Power District, NE Electric Revenue, 5.35%, 02/01/01 400,763
-----------------
601,125
-----------------
North Dakota (0.56%)
200,000 Fargo, ND Refunding Series B, 5.90%, 05/01/01 201,753
-----------------
Rhode Island (0.56%)
200,000 Rhode Island State Consolidated Capital Development, 4.30%, 02/01/01 199,987
-----------------
South Carolina (0.31%)
110,000 Columbia, SC Waterworks and Sewer System, 6.50%, 02/01/01 112,878
-----------------
South Dakota (0.29%)
105,000 South Dakota State Health & Education Facility Authority, 4.25%, 11/01/00 105,000
-----------------
Texas (2.68%)
275,000 Harris County, TX Flood Control, 4.65***%, 10/01/00 274,966
275,000 Houston, TX 6.75%, 03/01/01 277,418
500,000 Northwest, TX Independent School District, 4.50%, 08/15/01 480,965
-----------------
1,033,349
-----------------
Utah (0.56%)
200,000 Salt Lake County, UT Lease Revenue, 5.00%, 12/01/00 200,192
-----------------
Washington (0.70%)
250,000 Snohomish Co., WA Series A, 4.50%, 12/01/00 250,057
-----------------
Wisconsin (1.02%)
250,000 Brown County, WI Series B, 5.10%, 11/01/00 250,102
115,000 Whitewater, WI Sewer Revenue 5.10%, 05/01/01 115,323
-----------------
365,425
-----------------
Total Municipal Bonds 9,501,360
-----------------
Mutual Funds (4.40%)
1,581,465 Aim Institutional Tax Free Cash Reserve, 3.67%**** 1,581,465
-----------------
Total Investments in Securities (99.76%) (Cost--$35,802,355) $35,802,355
Other Assets & Liabilities (0.24%) 84,590
-----------------
Net Assets (100.00%) $35,886,945
=================
----------------
* Variable rate, put option subject to next business day settlement. **
Variable rate, put option subject to no longer that 7-day settlement.
*** Effective yield at date of purchase.
**** Rate shown is as of September 30, 2000
</TABLE>
<PAGE>
The Vintage Fixed Income Funds
The bond market truly believes that the Federal Reserve has engineered a soft
landing for the economy. It may however, in typical fashion, have been overdone.
Several indicators point to an economy that still has plenty of life. Consumers
remain upbeat, despite high gasoline prices. Consumer spending accelerated in
the third quarter from the prior quarter's lackluster pace. Unemployment remains
low, continuing to contribute to a healthy spending pace. Businesses continue to
invest in capital expenditures, providing support to personal consumption
expenditures. And the drain of growing Federal budget surpluses is most likely
coming to an end.
To be sure, the bond market has plenty of worries. Inflation has been creeping
higher all year and may be spreading beyond oil. Higher employment and energy
costs coupled with strong domestic demand are particularly impacting the price
of services. The presidential election may also be a key turning point for the
bond market, which has benefited from tight fiscal policy over the last decade.
Now that a budget surplus has been achieved, fiscal discipline is likely to
erode.
A longer-term concern is the value of the dollar. The U.S. current account
deficit has grown dramatically over the past three years, to a record level
relative to GDP. If at some point, however, investors' appetite for U.S. assets
diminishes, the dollar could depreciate significantly.
With the recent volatility in the stock market, the two-year Treasury Note
rallied as it became a safe haven for investors fleeing the volatile stocks in
the month of September. Nonetheless, the agency, mortgage, and corporate markets
all outperformed the Treasury market in the third quarter.
The government agency market performed well as hearings on legislative reform
were moved to the back burner as the election approached. Legislative reform,
however, may resurface next year. As long as the supply of agency debt continues
to increase and a political cloud hangs over this sector, further outperformance
is limited.
The corporate bond market had a strong third quarter, outperforming all other
sectors. We still find many attractive opportunities in corporate bonds, but
selectivity and quality are key. Several high profile industrial companies have
been suffering from profit margin compression. In the bank and finance sector
asset quality along with higher short-term funding costs are a concern. Balance
sheet strength is also paramount. Returns in the high yield (junk bond market)
continue to lag far behind the investment-grade universe.
We are underweighted to the mortgage-backed sector. Mortgages typically
underperform as long as the Fed remains in tightening posture. In addition,
relative to other sectors, mortgages do not represent outstanding value.
We are positioning durations of bond portfolios slightly shorter than their
benchmark. The bond market appears overly optimistic that the economy is slowing
enough to alleviate intensifying inflationary pressures. The dramatic inversion
of the Treasury yield curve continues to lessen as investors become more focused
on the likelihood of maintaining the budget surplus and inflation expectations.
The corporate bond market provides many attractive opportunities.
<PAGE>
The Vintage Equity Funds
While highly volatile, the equity markets ended the 3rd quarter little changed
from earlier in the year--with the notable exception of the Tech market, which
ended significantly down from its year's highs. After mounting a nice rally in
August, stocks declined in September as negative third quarter earnings
pre-announcements put a damper on the market.
Last year, technology was far and away the best performing sector in the stock
market and utilities represented the worst performing sector. This year, the
utility sector is leading the way by a wide margin. During the first three
quarters of this year, the utility sector is up over 50 percent! Strong utility
performance has largely been found among power producers, electric companies and
natural gas companies.
Despite the recent volatility of the stock market and the concerns surrounding
earnings, energy, the euro and the election, we now believe the environment for
stocks is potentially more favorable than at any time this year. With stocks now
at meaningfully lower levels and valuations improved, we believe the market has
already discounted most of the recent bad news. Granted, further downside
potential is likely if companies guide fourth quarter earnings expectations
lower.
One circumstance of a weaker Euro has been to dampen the earnings of U.S.
multinational companies with business operations in Europe. A weaker Euro causes
weaker reported earnings due to negative currency translations. Indeed, several
key earnings announcement disappointments were accompanied by explanations
attributing at least some of the weakness to the strong dollar.
Also adding to earnings concerns has been the economic slowdown in the U.S. that
started late last spring. The slowdown has primarily hurt the earnings of
industrial and retailing companies. The big question facing investors and the
stock market is how much of a slowdown will occur and what will the ultimate
impact be on corporate earnings.
The fourth quarter of the year has usually been seasonally strong for the stock
market. During the last 20 years, stocks have typically been weaker in the third
quarter and stronger in the fourth. One reason for this may be that the "January
effect" has increasingly been shifted ahead into the fourth quarter of the
preceding year as investors start buying early to get a jump on the market. The
seasonal period from October through May has also historically been more
favorable for the market. We believe more favorable returns may lie ahead.
<PAGE>
The Limited Term Bond Fund
We continue to position the average maturity of the Limited Term Bond Fund
shorter than our benchmark. The economy appears to be moderating but the bond
market has built that optimism into current rate levels. Inflationary pressures
may be building and labor markets certainly remain tight, potentially pressuring
bond yields in the next term. We favor corporate debt as there is a yield
advantage in that sector versus treasuries and agencies.
For the six months ended September 30, 2000, the Fund provided a total return of
3.95 percent. The Fund ended the period with net assets of $50.7 million.
<PAGE>
<TABLE>
VINTAGE MUTUAL FUNDS, INC.
Limited Term Bond Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
<CAPTION>
Par Value Description Value
---------------------------------------------------------------------------------------------------------------------------
<S> <C>
U.S. Treasury Notes (29.96%)
$1,000,000 5.75%, 08/15/03 $994,680
1,000,000 6.38%, 08/15/02 1,005,930
1,000,000 5.75%, 04/30/03 994,370
2,000,000 6.25%, 02/15/03 2,011,860
1,500,000 6.50%, 05/15/05 1,537,500
2,500,000 6.63%, 04/30/02 2,519,525
2,000,000 6.25%, 10/31/01 1,999,360
3,000,000 7.25%, 08/15/04 3,136,860
1,000,000 6.25%, 08/31/02 1,003,750
------------------
Total U.S. Treasury Notes 15,203,835
------------------
U.S. Government Agencies (11.68%)
1,000,000 Federal Farm Credit Bank, 6.15%, 03/23/05 974,780
1,000,000 Federal Home Loan Bank, 5.50%, 01/21/03 978,830
1,000,000 Federal National Mortgage Assoc., 5.80%, 07/23/01 993,750
1,000,000 Federal National Mortgage Assoc., 6.25%, 12/13/02 995,050
1,000,000 Federal National Mortgage Assoc., 6.60%, 07/16/07 981,990
1,000,000 Federal National Mortgage Assoc., 7.28%, 05/23/07 1,000,170
------------------
Total U.S. Government Agencies 5,924,570
------------------
Mortgage Related Securities (18.73%)
Collateralized Mortgage Obligations (7.57%)
459,351 Federal National Mortgage Assoc. 1997-72 VA, 7.00%, 10/18/02 458,593
779,050 Federal Home Loan Mortgage Corp. Series 1465 Class E, 6.50%, 09/15/06 775,685
1,627,226 Federal Home Loan Mortgage Corp. Series 1515 Class E, 6.50%, 03/15/07 1,619,480
1,000,000 Federal Home Loan Mortgage Corp. T-11 Class A3, 6.50%, 03/25/11 989,940
------------------
3,843,698
------------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools (1.18%)
601,601 #E61274, 7.00%, 08/01/09 600,091
------------------
Federal National Mortgage Association Mortgage-Backed Pools (1.02%)
525,512 1993-14, 6.00%, 02/25/08 516,005
------------------
Asset Backed Securities (8.96%)
897,524 Conseco 2000-D, 7.52%, 10/15/31 899,831
1,000,000 Copelco Capital Funding, 7.12%, 08/18/03 1,004,680
933,333 Fingerhut 98-1A, 6.07%, 05/15/05 929,899
354,000 Honda Auto Lease Trust 1999-A, 6.65%, 07/15/05 352,888
358,535 Nations Credit Grantor Trust 97-1, 6.75%, 08/15/13 355,893
1,000,000 Union Acceptance Corp., 6.82%, 01/09/06 1,002,920
------------------
4,546,111
------------------
Total Mortgage-Related Securities 9,505,905
------------------
U.S. Taxable Municipal Bonds (2.94%)
500,000 Coralville, IA Taxable Capital Improvement, 8.25%, 06/01/02 500,845
1,000,000 State of Texas Veterans Housing Fund II-Series B-1, 6.73%, 06/01/21 992,600
------------------
Total U.S. Taxable Municipal Bonds 1,493,445
------------------
Corporate Bonds (32.33%)
Banking and Financial Services (9.70%)
1,000,000 Bear Stearns, 7.00%, 01/15/27 996,250
1,000,000 Beneficial Corp, 6.27%, 12/06/01 992,500
1,000,000 CIT Group, Inc., 5.50%, 02/15/04 950,000
1,000,000 Comerica, 7.25%, 06/15/07 990,000
1,000,000 Salomon Smith Barney, 6.63%, 11/15/03 991,250
------------------
------------------
4,920,000
------------------
Consumer Goods and Services (5.24%)
1,000,000 Dillard's Department Store, 9.50%, 10/15/01 980,000
1,175,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 685,907
1,000,000 Reynolds & Reynolds, 6.12%, 03/02/01 995,000
------------------
2,660,907
------------------
Healthcare (1.64%)
1,000,000 Healthsouth Corp, 3.25%, 04/01/03 832,500
------------------
Industrial Goods and Services (8.80%)
1,000,000 Boeing Company, 6.35%, 06/15/03 991,250
1,000,000 Comdisco, 9.50%, 08/15/03 1,007,500
1,000,000 Consolidated Natural Gas, 7.25%, 10/01/04 998,750
500,000 Cummmins Engine, 6.75%, 02/15/27 464,375
1,000,000 Xerox Corporation, 8.13%, 04/15/02 1,002,500
------------------
4,464,375
------------------
Railroads (2.00%)
1,000,000 Norfolk Southern Railway Equipment Trust, 7.75%, 08/15/02 1,012,500
------------------
Telecommunications (4.01%)
1,000,000 US West, 7.63%, 06/09/03 1,012,500
1,000,000 Worldcom, 7.88%, 05/15/03 1,023,750
------------------
2,036,250
------------------
Utilities (0.94%)
500,000 Potomac Electric, 5.00%, 09/01/02 477,500
------------------
Total Corporate Bonds 16,404,032
------------------
Mutual Funds (3.41%)
1,730,355 Government Assets Fund T Shares, 6.44%** 1,730,355
------------------
Total Investments in Securities (99.05%)
(Cost $50,707,109) $50,262,142
Other Assets & Liabilities (0.95%) 480,893
------------------
Net Assets (100.00%) $50,743,035
==================
----------------
** Rate shown is as of September 30, 2000.
The Bond Fund
We are positioning the average maturity of the Bond Fund shorter than the
performance benchmark. The bond market appears too optimistic that a soft
landing has been achieved. Inflationary pressures, meanwhile, may be
intensifying. The Treasury yield curve steepened sharply during the quarter as
the bond market began to anticipate an easing of monetary policy. This
steepening is likely to reverse as expectations for a Fed rate cut subside. The
long-end of the Treasury curve may come under pressure in the months following
the election as investors become more focused on the likelihood of maintaining
the budget surplus. The corporate bond market presents the most attractive
opportunities, but selectivity and quality are key. We are underweighted to the
government agency sector due to supply and legislative concerns. We are also
underweighted to the mortgage-backed sector, since this sector does not usually
perform well in a rising short-term interest rate environment.
For the six months ended September 30, 2000, the Fund provided a total return of
4.30 percent. The Fund ended the period with net assets of $30.9 million.
VINTAGE MUTUAL FUNDS, INC.
Bond Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Par Value Description Value
---------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds (12.97%)
$1,200,000 7.50%, 11/15/16 $1,367,244
1,100,000 8.13%, 08/15/19 1,343,023
500,000 12.00%, 08/15/13 681,405
500,000 8.00%, 11/15/21 610,780
------------------
Total U.S. Treasury Bonds 4,002,452
------------------
U.S. Treasury Notes (2.75%)
750,000 5.63%, 02/28/01 747,885
100,000 8.00%, 05/15/01 101,031
------------------
------------------
Total U.S. Treasury Notes 848,916
------------------
U.S. Government Agencies (8.96%)
250,000 Federal Home Loan Bank, 5.98%, 10/06/00 249,978
350,000 Federal Home Loan Bank, 4.64%, 10/06/00 349,919
500,000 Federal Home Loan Bank, 4.65%, 10/20/00 499,495
500,000 Federal Home Loan Bank, 6.50%, 11/29/05 498,010
300,000 Federal National Mortgage Assoc., 5.25%, 04/19/01 298,125
500,000 Housing Urban Development, 5.30%, 08/01/01 493,980
225,000 Student Loan Marketing Assoc., 6.57%, 10/19/00 225,000
150,000 World Bank Gl Bd, 8.13%, 03/01/01 150,938
------------------
Total U.S. Government Agencies 2,765,445
------------------
Mortgage-Related Securities (29.93%)
Collateralized Mortgage Obligations (11.76%)
161,906 Aames Mortgage Trust, 6.59%, 06/15/24 161,123
276,980 Advanta Mortgage Loan Trust 1996-1 A5, 6.35%, 10/15/21 274,880
190,000 Advanta Mortgage Loan Trust 1999-1 A4, 6.30%, 04/25/27 182,210
755,000 Centex Home Equity, 6.04%, 06/25/30 746,076
58,872 Federal Home Loan Mortgage Corp. 1395, 6.00%, 11/15/21 58,120
22,457 GE Capital Mtg 1997-HE3 A3, 6.52%, 08/25/13 22,348
20,379 Green Treee 1996-2 A2, 6.45%, 04/15/27 20,363
189,453 Merrill Lynch Mortgage Investors 1989-E, 9.40%, 09/15/09 191,043
1,006,080 Mortgage Lenders Network Home Equity 1998-1, 6.76%, 08/25/29 986,854
164,434 Salomon Mortgage Sec. VII 1995-1 PO, 10.54%*, 02/25/25 112,162
500,000 Southern Pacific Secured Assets Corp 1998-1 A6, 7.08%, 03/25/28 483,070
394,000 UCFC Manufactured Housing Contract 1998-2 A2, 6.08%, 08/15/15 389,079
------------------
3,627,328
------------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools (1.26%)
38,364 #C00126, 8.50%, 06/01/22 39,268
182,373 #E00548, 6.50%, 05/01/13 179,570
172,308 #00538, 6.50%, 03/01/13 169,746
------------------
388,584
------------------
Federal National Mortgage Association Mortgage-Backed Pools (9.00%)
291,379 #251286, 7.00%, 11/01/27 286,920
147,807 #313873, 7.00%, 12/01/27 145,656
369,810 #408827, 6.50%, 02/01/28 357,681
423,230 #251813, 6.50%, 07/01/28 406,432
902,737 #448917, 6.50%, 11/01/28 869,453
723,233 #430093, 7.00%, 06/01/28 711,437
------------------
2,777,579
------------------
Government National Mortgage Assoc. Mortgage-Backed Pools (7.91%)
9,351 #315929, 9.00%, 06/15/22 9,664
19,718 #341681, 8.50%, 01/15/23 20,231
24,227 #354189, 7.50%, 05/15/23 24,297
54,733 #359600, 7.50%, 07/15/23 54,893
141,899 #376218, 7.50%, 08/15/25 142,320
74,179 #385300, 8.00%, 10/15/24 75,430
67,416 #410049, 8.00%, 07/15/25 68,549
291,066 #412334, 7.00%, 10/15/27 286,790
122,225 #412645, 8.00%, 08/15/26 124,309
116,534 #440404, 7.50%, 04/15/27 116,877
177,126 #454375, 7.00%, 03/15/28 175,029
851,531 #462384, 7.00%, 11/15/27 841,245
210,186 #780213, 7.50%, 08/15/25 210,974
289,545 #780619, 7.00%, 08/15/12 290,237
------------------
2,440,845
------------------
Total Mortgage-Related Securities 9,234,336
------------------
U.S. Taxable Municipal Bonds (3.30%)
300,000 Coralville, IA Taxable Capital Improvement, 8.25%, 06/01/02 300,507
125,000 Fulton, MO Import Taxable Sinking Fund, 7.60%, 07/01/11 127,170
225,774 Mille Lacs Band Of Ojibwe Indians (Grand Casino) Rev. Notes, 8.00%, 06/01/04 226,404
90,000 Prairie Du Chien, WI, Redevelopment Auth., 7.60%, 04/01/05 91,951
100,000 Prairie Du Chien, WI, Redevelopment Auth., 7.63%, 04/01/06 102,449
165,000 Washington St. HSA, 7.65%, 01/01/04 168,191
------------------
Total U.S. Taxable Municipal Bonds 1,016,672
------------------
Corporate Bonds (37.93%)
Banking and Financial Services (3.67%)
550,000 Block Financial, 8.50%, 04/15/07 574,750
250,000 GMAC, 8.88%, 06/01/10 270,938
130,000 Hubco, Inc., 7.75%, 01/15/04 125,450
165,000 Lehman Brothers MTN, 8.05%, 01/15/19 161,906
------------------
1,133,044
------------------
Consumer Goods and Services (17.02%)
300,000 Alberto-Culver, 6.38%, 06/15/28 270,750
140,000 Dayton Hudson, 10.00%, 12/01/00 140,525
700,000 Healthsouth Corp, 3.25%, 04/01/03 582,750
365,000 J.C. Penney, 7.38%, 08/15/08 283,787
1,050,000 Olsten Corp, 7.00%, 03/15/06 1,014,563
700,000 Omnicare, 5.00%, 12/01/07 518,875
1,510,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 881,463
913,000 Reebok International, 6.75%, 09/15/05 839,960
750,000 Tupperware, 7.25%, 10/01/06 719,062
------------------
5,251,735
------------------
Industrial Goods and Services (11.90%)
315,000 ABC Rail Product, 8.75%, 12/31/04 216,345
145,000 AGCO Corp, 8.50%, 03/15/06 136,300
500,000 Geon Company, 6.88%, 12/15/05 474,375
955,000 Ikon Office, 6.75%, 11/01/04 885,763
277,000 IMC Global, 9.45%, 12/15/11 292,235
700,000 Millipore Corp, 7.20%, 04/01/02 686,875
590,000 Teck Corp, 3.75%, 07/15/06 430,700
625,000 Thermo Instrument, 4.00%, 01/15/05 549,219
------------------
3,671,812
------------------
International (1.64%)
300,000 Naples, City of, Italy, 7.52%, 07/15/06 302,250
185,000 Nova Scotia, 8.25%, 11/15/19 201,881
------------------
504,131
------------------
Real Estate (1.24%)
150,000 HRPT Properties, 6.88%, 08/26/02 146,625
10,000 Realty Income Sr. Notes, 8.25%, 11/15/08 235,000
------------------
381,625
------------------
Utilities (2.46%)
500,000 Boise Cascade, 7.05%, 5/15/05 476,250
75,000 Citizens Utility Co. 6.80%, 8/15/26 73,969
200,000 Texas East Trans., 8.25%, 10/15/04 209,250
------------------
759,469
------------------
Total Corporate Bonds 11,701,816
------------------
Commercial Paper (3.40%)
1,050,000 Cooperative Association Tractor, 6.77%***, 10/02/00 1,049,803
------------------
Mutual Funds (0.02%)
5,090 Government Assets Fund T Shares, 6.44%** 5,090
------------------
Total Investments in Securities (99.26%)
(Cost $30,978,085) $30,624,530
Other Assets & Liabilities (0.74%) 227,484
------------------
Net Assets (100.00%) $30,852,014
==================
----------------
* Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to maturity of
principal only is sensitive to the rate of principal payments on the
underlying mortgages. A slow
(rapid) rate of principal repayments may have an adverse (positive) effect
on yield to maturity. The interest rate disclosed represents the current
yield at date of purchase.
** Rate shown is as of September 30, 2000. *** Effective yield at date of
purchase.
<PAGE>
The Income Fund
We continue to position the average maturity of the Income Fund slightly shorter
than our benchmark. While recent press suggests the economy is moderating,
inflationary pressures continue to build placing a temporary floor on interest
rates. Labor markets coupled with somewhat stronger foreign economies could
further hinder interest rate declines from here. We favor the corporate bond
market as credit spreads continue to come under pressure. We have continued to
under-weight the government, agency, and mortgage-backed sectors of the markets.
We further emphasized increasing the yield of the fund to offer greater income
to each of the shareholders.
For the six months ended September 30, 2000, the Fund provided a total return of
4.06 percent. The Fund ended the period with net assets of $112.4 million.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
Income Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Par Value Description Value
---------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds (10.74%)
$3,250,000 7.50%, 11/15/16 $3,702,953
4,500,000 7.25%, 08/15/22 5,114,520
2,900,000 7.13%, 02/15/23 3,257,048
-----------------
-----------------
Total U.S. Treasury Bonds 12,074,521
-----------------
U.S. Treasury Notes (4.23%)
2,000,000 5.75%, 08/15/03 1,989,360
1,750,000 6.50%, 05/31/02 1,761,480
1,000,000 6.00%, 08/15/09 1,004,060
-----------------
Total U.S. Treasury Notes 4,754,900
-----------------
U.S. Government Agencies (3.86%)
1,000,000 Federal Home Loan Mortgage Corp, 5.00%, 02/15/01 994,090
3,250,000 Federal National Mortgage Assoc, 7.25%, 01/15/10 3,351,498
-----------------
Total U.S. Government Agencies 4,345,588
-----------------
Mortgage Related Securities (38.48%)
Collateralized Mortgage Obligations (5.80%)
2,396,826 Federal Agricultural Mortgage Corp Series CA-10011, 7.59%, 01/25/02 2,392,416
2,000,000 Federal Home Loan Mortgage Corp Series 1873 D, 7.00%, 04/15/09 2,002,480
1,000,000 Federal National Mortgage Assoc Series 1994-36 N, 6.50%, 03/25/24 924,560
787,188 Prudential Home Mortgage Securities, 7.15%, 03/25/24 780,497
422,199 Ryland Mortgage Securities Corp 1993-4 A5, 7.50%, 08/25/24 421,599
-----------------
6,521,552
-----------------
Federal Home Loan Mortgage Corp Mortgage-Backed Pools (5.38%)
2,413,737 #C00896, 7.50%, 12/01/29 2,411,468
1,608,269 #C00592, 7.00%, 02/01/28 1,583,952
2,131,741 #19588, 6.50%, 12/01/28 2,055,276
-----------------
6,050,696
-----------------
Federal National Mortgage Association Mortgage-Backed Pools (7.14%)
777,510 #303971, 7.50%, 07/01/16 776,639
1,646,718 #251614, 7.00%, 04/01/28 1,620,667
1,949,413 #251697, 6.50%, 05/01/28 1,881,729
1,384,517 #252334, 6.50%, 02/01/29 1,332,376
1,629,421 #323640, 7.50%, 04/01/29 1,626,358
798,997 #430203, 7.00%, 06/01/28 785,158
-----------------
8,022,927
-----------------
Government National Mortgage Association Mortgage-Backed Pools (12.73%)
2,007,634 #462556, 6.50%, 02/15/28 1,942,787
1,556,159 #780584, 7.00%, 06/15/27 1,539,399
1,795,868 #780717, 7.00%, 02/15/28 1,775,342
1,290,621 #451522, 7.50%, 10/15/27 1,294,467
1,294,036 #451459, 7.50%, 09/15/27 1,297,879
1,794,203 #486760, 6.50%, 12/15/28 1,733,613
395,056 #780075, 8.00%, 03/15/25 401,938
1,136,022 #780453, 7.50%, 12/15/25 1,140,044
271,946 #21608, 7.50%, 02/20/09 273,600
2,096,549 #469699, 7.00%, 11/15/28 2,068,351
859,727 #486467, 7.00%, 08/15/28 848,276
-----------------
14,315,696
-----------------
Asset Backed Securities (7.43%)
1,000,000 Bear Stearns CBO 1998-1 Class A-2A, 6.72%, 06/15/10 911,245
1,000,000 Chyps CBO Series 1999-1 Class A1, 6.47%, 02/01/11 943,390
973,791 Denver Arena Trust, 6.94%, 11/15/19 904,593
342,843 Green Tree Recreational Equipment, 6.55%, 07/15/28 340,577
1,123,245 Greentree 96-F Class A4, 7.30%, 01/15/28 1,124,862
1,431,847 IMC Home Equity Loan 1996-4 Class A4, 7.11%, 08/25/14 1,424,845
717,071 Nations Credit Grantor Trust 97-1, 6.75%, 08/15/13 711,786
2,000,000 Olympic Auto 96-D Class A5, 6.25%, 11/15/04 1,993,500
-----------------
8,354,798
-----------------
Total Mortgage-Related Securities 43,265,669
-----------------
U.S. Taxable Municipal Bonds (4.03%)
1,100,000 Coralville, IA Taxable Capital Improvement, 8.25%, 06/01/02 1,101,859
1,000,000 Detroit Michigan Building Authority, 6.60%, 07/01/03 999,120
1,000,000 Las Vegas NV., 7.20%, 07/01/15 980,170
394,315 Mille Lacs Band of Ojibwe Indians (Grand Casino) Rev. Notes, 8.00%, 06/01/04 395,415
1,200,000 University of Soutnern California, 5.87%, 01/01/14 1,051,020
-----------------
Total U.S. Taxable Municipal Bonds 4,527,584
-----------------
Corporate Bonds (35.22%)
Banking and Financial Services (3.93%)
500,000 John Deere, 8.63%, 08/01/19 521,250
2,000,000 Lehman Brothers, 6.63%, 02/05/06 1,930,000
500,000 Northern Trust Co, 6.50%, 05/01/03 495,000
1,500,000 Paine Webber Group Inc, 6.45%, 12/01/03 1,471,875
-----------------
4,418,125
-----------------
Consumer Goods and Services (14.78%)
2,000,000 Ford Motor Company, 7.13%, 11/15/25 1,800,000
1,950,000 Healthsouth Corp, 3.25%, 04/01/03 1,623,375
1,500,000 J.C. Penney & Co., 7.38%, 08/15/08 1,166,250
1,100,000 Jones Apparel, 7.50%, 06/15/04 1,056,000
1,150,000 K-Mart Corp, 12.50%, 03/01/05 1,198,875
1,000,000 MCI Communications, 8.25%, 01/20/23 1,003,750
2,990,000 Omnicare, 5.00%, 12/01/07 2,216,337
5,025,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 2,933,344
1,000,000 Reebok International, 6.75%, 09/15/05 920,000
166,667 Secured Restaurant Trust, 10.25%, 11/15/00 167,242
2,645,000 Tupperware, 7.25%, 10/01/06 2,535,894
-----------------
16,621,067
-----------------
Governement Agency (0.61%)
700,000 Quebec Province, 6.19%, 03/10/26 688,625
-----------------
Industrial Goods and Services (10.20%)
1,000,000 Comdisco, 9.50%, 08/15/03 1,007,500
2,000,000 Geon Company, 6.88%, 12/15/05 1,897,500
1,135,000 Ikon Office, 6.75%, 11/01/04 1,052,712
2,300,000 Olsten Corp, 7.00%, 03/15/06 2,222,375
2,100,000 Owens-Illinois, 8.10%, 05/15/07 1,892,625
2,000,000 Teck Corp, 3.75%, 07/15/06 1,460,000
2,200,000 Thermo Instrument, 4.00%, 01/15/05 1,933,250
-----------------
11,465,962
-----------------
Real Estate (4.82%)
1,250,000 Avalon Bay, 6.80%, 07/15/06 1,185,937
2,000,000 HRPT Properties Trust, 6.88%, 08/26/02 1,955,000
1,550,000 Nationwide Health Properties, 7.23%, 11/08/06 1,348,500
1,000,000 Simon Property Group, Inc., 7.13%, 02/09/09 931,250
-----------------
5,420,687
-----------------
Utilities (0.88%)
1,000,000 Florida Power & Light, 6.875%, 04/01/04 986,250
-----------------
Total Corporate Bonds 39,600,716
-----------------
Mutual Funds (2.68%)
3,012,963 Government Assets Fund T Shares, 6.44%** 3,012,963
-----------------
Total Investments in Securities (99.24%)
(Cost $113,486,828) $111,581,941
Other Assets & Liabilities (0.76%) 857,435
-----------------
Net Assets (100.00%) $112,439,376
=================
----------------
** Rate shown is as of September 30, 2000.
The Municipal Bond Fund
Supply in the municipal market has been substantially less this year in
comparison to the previous two years. Demand remains fairly strong from
individuals which has led to lower rates during the past quarter. Yields have
recently moved to levels that are not as attractive to individuals relative to
other types of securities and therefore, there may be additional pressure on
municipal yields. We continue to position the average maturity of the Municipal
Bond Fund shorter than our benchmark. We are selectively adding individual bonds
that are appropriately structured. We are positioned to take advantage of higher
yields while lengthening the maturity of the fund when municipal yields rise.
For the six months ended September 30, 2000, the Fund provided a total return of
3.13 percent. The Fund ended the period with net assets of $46.8 million.
VINTAGE MUTUAL FUNDS, INC.
Municipal Bond Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Par Value Description Value
----------------------------------------------------------------------------------------------------------------------------
Municipal Bonds (85.93%)
Delaware (1.07%)
500,000 Sussex County, DE, 4.90%, 10/15/01 502,450
-------------------
Florida (3.25%)
500,000 Jacksonville, FL Water & Sewer, 5.00%, 10/01/20 508,240
500,000 Martin County, FL, General Obligation, 4.25%, 02/01/01 499,600
500,000 State of Florida Board of Education, 5.13%, 06/01/05 511,315
-------------------
1,519,155
-------------------
Idaho (1.08%)
500,000 Meridian Joint School District, #2 Idaho, 5.00%, 07/30/03 505,895
-------------------
Illinois (17.29%)
200,000 Cherry Valley General Obligations, 6.60%, 01/01/01 201,030
1,000,000 Chicago General Obligations, 5.38%, 01/01/13 1,016,540
1,000,000 Cook County Series B, 4.90%, 11/15/10 992,230
1,000,000 Illinois Health Facility-Northwestern, 6.75%, 08/15/11 1,036,800
465,000 Illinois Housing Development Authority Single Family, 6.50%, 02/01/09 481,266
1,000,000 Illinois State Sales Tax Revenue, 5.00%, 06/15/09 1,008,360
1,000,000 Illinois State Toll Highway Authority Revenue, 5.50%, 01/01/14 1,023,570
1,000,000 Joliet Illinois, 6.25%, 01/01/11 1,017,860
1,000,000 Macon County And Decatur Illinois Ctf Partn, 6.50%, 01/01/04 1,055,200
250,000 Winnebago County, Il School District 122, 5.75%, 06/01/01 252,200
-------------------
8,085,056
-------------------
Indiana (13.79%)
1,000,000 Evansville, IN Building Authority, 5.30%, 08/01/08 1,028,330
1,000,000 Highland, IN Sch Bldg Corp, 5.25%, 07/05/14 983,570
500,000 Indiana Bond Bank (Elkhart Water\Sewer Refunding), 5.55%, 11/01/10 507,705
1,000,000 Indiana University Higher Ed, 6.80%, 08/01/04 1,036,460
1,000,000 Indianapolis, IN Public Transportation, 6.00%, 07/01/10 1,048,620
1,000,000 Kokomo-Center, IN School Building Corp., 6.75%, 07/15/04 1,071,110
750,000 Marion County, IN, 6.60%, 06/01/03 774,457
-------------------
6,450,252
-------------------
Iowa (1.12%)
500,000 Iowa State Certificate Participation, 6.50%, 07/01/06 522,785
-------------------
Kansas (2.16%)
1,000,000 Johnson County, KS, School District #233, 5.30%, 09/01/13 1,012,210
-------------------
Massachusetts (2.19%)
500,000 Massachusetts Bay Transportation Authority, 5.30%, 03/01/08 520,030
500,000 Massachusetts State Port Authority, 5.50%, 07/01/15 504,085
-------------------
1,024,115
-------------------
Michigan (4.33%)
1,000,000 Michigan State HFA, 5.75%, 05/15/16 1,012,050
1,000,000 Wayne State University, 5.38%, 11/15/13 1,010,440
-------------------
2,022,490
-------------------
Minnesota (2.18%)
1,000,000 Minneapolis, MN , Reference Series A, 5.10%, 12/01/08 1,019,030
-------------------
New Jersey (1.08%)
500,000 New Jersey Wastewater Treatment Trust Series A, 4.80%, 09/01/06 505,115
-------------------
New York (2.14%)
1,000,000 Long Island NY Power, 4.10%, 12/01/00 999,260
-------------------
Ohio (2.07%)
1,000,000 Hamilton County, OH Sewer, 5.00%, 12/01/14 968,360
-------------------
Pennsylvania (2.06%)
1,000,000 Northampton County, PA, 5.00%, 08/15/14 964,060
-------------------
Rhode Island (1.08%)
500,000 Rhode Island State, 4.90%, 06/15/04 505,540
-------------------
Texas (7.66%)
500,000 Dallas, TX, Water & Sewer, 4.90%, 04/01/04 503,040
1,000,000 Pharr-San Juan-Alamo, TX, Independent School District, 5.25%, 02/01/08 1,023,180
900,000 Sam Rayburn Texas Municipal, 6.00%, 09/01/10 982,197
1,000,000 San Antonio, TX, 6.00%, 08/01/08 1,073,500
-------------------
3,581,917
-------------------
Utah (1.11%)
500,000 Salt Lake County, UT, 5.50% 12/15/04 518,950
-------------------
Virginia (2.63%)
1,000,000 Virginia Beach, VA, 5.40%, 09/01/09 1,032,100
195,000 Virginia Educational Loan Authority Series E, 5.50%, 03/01/01 195,768
-------------------
1,227,868
-------------------
Washington (10.64%)
1,000,000 Benton County, WA, Public Utility, 5.45%, 11/01/08 1,034,980
800,000 Grant County, WA, Public Utilities Hydro-Electric, 5.60%, 01/01/10 829,824
1,000,000 Pierce County, WA, School District #001, 6.00%, 12/01/10 1,083,880
1,000,000 Skagit County, WA, 5.35%, 12/01/09 1,024,180
1,000,000 Thurston County, WA #111, 5.00%, 12/01/10 1,002,560
-------------------
4,975,424
-------------------
Wisconsin (6.46%)
500,000 Milwaukee, WI, 5.15%, 11/15/08 506,600
500,000 Sturgen Bay, 4.90%, 01/01/06 502,200
1,000,000 Wisconsin State Government Obligation, 5.00%, 05/01/11 995,080
1,000,000 Wisconsin State Series A, 5.00%, 05/01/09 1,016,030
-------------------
3,019,910
-------------------
Wyoming (0.54%)
250,000 Cheyenne, WY General Obligations Unlimited, 5.45%, 12/01/01 252,913
-------------------
Total Municipal Bonds 40,182,755
-------------------
Alternative Minimum Tax Paper (10.42%)
1,000,000 Alaska Student Loan, 5.63%, 07/01/07 1,025,230
500,000 Austin, TX, Airport Revenue, 5.50%, 11/15/06 516,485
300,000 Illinois Student Assistance Commission, Student Loan Revenue, Series M, 6.30%, 03/01/03 308,778
500,000 Iowa Student Loan, 5.75%, 12/01/06 514,305
1,000,000 Iowa Student Loan Liquidity Corp. Series C, 5.10%, 06/01/09 993,020
395,000 Massachusetts Education Loan Authority, 5.60%, 07/01/06 408,288
25,000 New Mexico Educational Assistance, 5.75%, 08/01/07 25,766
80,000 Student Loan Funding Corp., Series C, 5.50%, 12/01/01 80,340
1,000,000 Utah Bd Regents, 5.20%, 05/01/08 1,003,060
-------------------
Total Alternative Minimum Tax Paper 4,875,272
-------------------
Mutual Funds (2.65%)
1,239,119 Municipal Assets Fund I Shares, 5.04%** 1,239,119
-------------------
Total Investments in Securities (99.00%)
(Cost $45,929,014) $46,297,146
Other Assets & Liabilities (1.00%) 466,028
-------------------
Net Assets (100.00%) $46,763,174
===================
----------------
** Rate shown is as of September 30, 2000.
<PAGE>
The Vintage Balanced Fund
During the third quarter no change occurred to our allocation between stocks and
bonds. The stocks and bonds in the fund both performed well during the quarter.
We remain cautious in regards to interest rates as inflationary pressures have
mounted. We are maintaining a shorter-than-average maturity in the bond portion
of the portfolio and are over-weighting corporate bonds. In the stock market we
look for mixed earnings reports for the third quarter. In light of this we
continue to seek strong performance from those companies that offer consistent,
high quality, growth oriented earnings. As equities were pressured following
quarter's end, we increased our equity exposure to capture the benefits of a
lower market valuation.
For the six months ended September 30, 2000, the Fund provided a total return of
(2.35) percent. The Fund ended the period with net assets of $87.2 million.
VINTAGE MUTUAL FUNDS, INC.
Balanced Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Shares/
Par Value Description Value
----------------------------------------------------------------------------------------------------------------------------
US Treasury Bonds (4.34%)
$1,300,000 7.50%, 11/15/16 $1,481,181
500,000 7.25%, 08/15/22 568,280
1,000,000 7.13%, 02/15/23 1,123,120
500,000 8.00%, 11/15/21 610,780
------------------
Total U.S. Treasury Bonds 3,783,361
------------------
U.S. Treasury Notes (1.77%)
300,000 6.25%, 01/31/02 300,186
500,000 6.00%, 08/15/04 501,560
750,000 5.63%, 12/31/02 744,375
------------------
Total U.S. Treasury Notes 1,546,121
------------------
U.S. Government Agencies (5.95%)
550,000 Federal Home Loan Bank, 6.13%, 08/15/03 544,401
1,000,000 Federal Home Loan Mortgage Corp., 5.00%, 01/15/04 955,440
1,500,000 Federal National Mortgage Assoc., 7.25%, 01/15/10 1,546,845
350,000 Federal National Mortgage Assoc., 6.05%, 07/28/03 344,463
1,800,000 Federal National Mortgage Assoc. Discount Note, 10/02/00 1,799,690
------------------
Total U.S. Government Agencies 5,190,839
------------------
Mortgage Related Securities (10.24%)
Collateralized Mortgage Obligations (0.27%)
2,179 Federal National Mortgage Assoc., 1992-34 Class E, 7.00%, 07/25/20 2,169
129,803 Federal National Mortgage Assoc., 1992-46 Class J, 5.00%, 01/25/07 125,788
38,125 Federal National Mortgage Assoc., 1994-85 Class E, 6.00%, 11/25/06 37,829
100,265 Salomon Bros. Mortgage Sec. VII, 1995-1 Class PO, 10.54%***, 02/25/25 68,392
------------------
234,178
------------------
Federal Home Loan Mortgage Corp. Mortgage-Backed Pools (2.72%)
482,747 #C00896, 7.50%, 12/01/29 482,294
402,067 #C00592, 7.00%, 02/01/28 395,988
529,118 #17281, 6.50%, 11/02/28 510,228
532,935 #19588, 6.50%, 12/01/28 513,819
469,622 #E20252, 7.00%, 07/01/11 468,189
------------------
2,370,518
------------------
Federal National Mortgage Assoc. Mortgage-Backed Pools (2.72%)
97,126 #251286, 7.00%, 11/01/27 95,640
487,353 #251697, 6.50%, 05/01/28 470,432
461,506 #252334, 6.50%, 02/01/29 444,125
531,333 #323640, 7.50%, 04/01/29 530,334
505,373 #428865, 7.00%, 06/01/28 496,509
340,852 #430203, 7.00%, 06/01/28 334,948
------------------
------------------
2,371,988
------------------
Government National Mortgage Assoc. Mortgage-Backed Pools (4.17%)
139,221 #376218, 7.50%, 08/15/25 139,635
97,022 #412334, 7.00%, 10/15/27 95,597
322,655 #451522, 7.50%, 10/15/27 323,617
501,908 #462556, 6.50%, 02/15/28 485,697
524,137 #469699, 7.00%, 11/15/28 517,088
429,864 #486467, 7.00%, 08/15/28 424,138
448,551 #486760, 6.50%, 12/15/28 433,403
190,212 #780075, 8.00%, 03/15/25 193,526
486,867 #780453, 7.50%, 12/15/25 488,590
389,041 #780584, 7.00%, 06/15/27 384,851
144,773 #780619, 7.00%, 08/15/12 145,119
------------------
3,631,261
------------------
Asset Backed Securities (0.36%)
157,137 Green Tree Recreational Equipment, 6.55%, 07/15/28 156,098
158,995 UCFC Home Equity Loan, 7.48%, 03/15/20 159,071
------------------
315,169
------------------
Total Mortgage-Related Securities 8,923,114
------------------
U.S. Taxable Municipal Bonds (1.84%)
350,000 Coralville, IA Taxable Capital Improvement, 8.25%, 06/01/02 350,592
205,000 Berry Creek, CO, 6.65%, 12/01/01 204,775
195,000 Fulton, MO Golf Course, 7.60%, 07/01/11 198,385
135,945 Mille Lacs Band Of Ojibwe Indians, 8.00%, 06/01/04 136,324
200,000 New Orleans, LA Hsg. Dev., 8.00%, 12/01/03 201,182
250,000 Portland, OR Multifamily Hsg., 7.625%, 12/01/01 250,752
300,000 University of Southern California, 5.87%, 01/01/14 262,755
------------------
Total U.S. Taxable Municipal Bonds 1,604,765
------------------
Corporate Bonds (14.92%)
Banking and Financial Services (3.47%)
400,000 American Express, 6.25%, 08/10/05 403,252
500,000 Bear Stearns, 6.25%, 07/15/05 478,750
460,000 Hubco, Inc, 7.75%, 01/15/04 443,900
250,000 Lehman Bros. MTN, 8.05%, 01/15/19 245,313
500,000 Merrill Lynch, 6.25%, 10/15/08 465,000
500,000 Paine Webber Group Inc, 6.45%, 12/01/03 490,625
500,000 Salomon Smith Barney, 6.63%, 11/15/03 495,625
------------------
3,022,465
------------------
Consumer Goods and Services (4.98%)
500,000 Ford Motor Company, 7.13%, 11/15/25 450,000
550,000 Healthsouth Corp, 3.25%, 04/01/03 457,875
500,000 J.C. Penney & Co., 6.13%, 11/15/03 440,000
400,000 Jones Apparel, 7.50%, 06/15/04 384,000
350,000 K Mart Corp, 12.50%, 03/01/05 364,875
1,000,000 Omnicare, 5.00%, 12/01/07 741,250
1,600,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 934,000
100,000 Reebok International, 6.75%, 09/15/05 92,000
500,000 Tupperware, 7.25%, 10/01/06 479,375
------------------
4,343,375
------------------
Government Agency (0.34%)
300,000 Quebec Province, 6.19%, 03/10/26 295,125
------------------
Industrial Goods and Services (3.92%)
100,000 ATCH Top & SF, 7.09%, 02/15/01 99,828
500,000 Cummins Engine, 6.75%, 02/15/27 464,375
500,000 Ikon Office, 6.75%, 11/01/04 463,750
245,000 Millipore Corp, 7.20%, 04/01/02 240,406
800,000 Olsten Corp, 7.00%, 03/15/06 773,000
500,000 Owens-Illinois, 8.10%, 05/15/07 450,625
600,000 Teck Corp, 3.75%, 07/15/06 438,000
550,000 Thermo Instrument, 4.00%, 01/15/05 483,312
------------------
------------------
3,413,296
------------------
International (0.19%)
150,000 Nova Scotia, 8.25%, 11/15/19 163,688
------------------
Real Estate (1.45%)
500,000 Avalon Bay, 6.80%, 07/15/06 474,375
500,000 HRPT Properties Trust, 6.88%, 08/26/02 488,750
350,000 Nationwide Health Properties, 7.23%, 11/08/06 304,500
------------------
------------------
1,267,625
------------------
Utilities (0.57%)
500,000 Washington Water And Power, 6.24%, 10/02/00 500,000
------------------
Total Corporate Bonds 13,005,574
------------------
Common Stocks (60.88%)
Advertising (0.92%)
11,000 Omnicom Group 802,312
------------------
Banking (2.30%)
23,400 Bank Of New York 1,311,863
15,000 Wells Fargo 689,062
------------------
2,000,925
------------------
Broadcasting (1.30%)
20,000 Clear Channel Communications* 1,130,000
------------------
Computer Hardware (4.38%)
30,000 Cisco Systems* 1,657,500
8,800 IBM 990,000
10,000 Sun Microsystems* 1,167,500
------------------
3,815,000
------------------
Computer-Software & Peripherals (2.27%)
20,000 Citrix Systems* 401,250
26,200 Microsoft* 1,578,550
------------------
------------------
1,979,800
------------------
Consumer Goods & Services (1.09%)
17,000 Kimberly-Clark 948,812
------------------
Containers and Packaging (1.06%)
20,000 Avery Dennison 927,500
------------------
Diversified (2.50%)
7,500 Kansas City Southern* 65,156
13,000 Minnesota Mining and Manufacturing 1,184,625
18,000 Tyco International 933,750
------------------
2,183,531
------------------
Electrical & Electronic (3.41%)
24,000 General Electric 1,384,500
24,000 General Motors H* 892,320
15,000 Solectron* 691,875
------------------
2,968,695
------------------
Financial Services (6.52%)
30,000 AXA Financial 1,528,125
26,666 Citigroup 1,441,631
16,000 Fannie Mae 1,144,000
10,000 Morgan Stanley Dean Witter 914,375
15,000 Stilwell Financial 652,500
------------------
5,680,631
------------------
Health Care Products and Services (1.13%)
20,800 Abbott Laboratories 989,300
------------------
Industrial Goods and Services (1.99%)
25,000 United Technologies 1,731,250
------------------
Insurance (1.51%)
13,710 American International Group 1,311,876
------------------
Internet Related (2.59%)
20,000 America Online* 1,075,000
24,000 Exodus Communications* 1,185,000
------------------
------------------
2,260,000
------------------
Medical Equipment & Supplies (2.51%)
20,000 Guidant* 1,413,750
15,000 Medtronic 777,187
------------------
------------------
2,190,937
------------------
Oil & Gas Exploration Products & Services (6.92%)
25,000 Coastal 1,853,125
10,000 Enron 876,250
8,000 Exxon Mobile 713,000
18,300 Halliburton 895,556
13,800 Schlumberger 1,135,913
13,000 Weatherford International* 559,000
------------------
6,032,844
------------------
Pharmaceuticals (3.70%)
15,000 American Home Products 848,438
20,000 Bristol-Myers Squibb 1,142,500
27,500 Pfizer 1,235,781
------------------
3,226,719
------------------
Retail - General Merchandise (1.69%)
30,000 Gap 603,750
34,000 Target 871,250
------------------
------------------
1,475,000
------------------
Retail - Specialty Stores (2.27%)
23,000 Lowe's 1,032,125
25,000 Walgreen 948,437
------------------
1,980,562
------------------
Semiconductors (2.43%)
36,000 Intel 1,498,500
7,000 Vitesse Semiconductor* 622,563
------------------
2,121,063
------------------
Technology (0.43%)
8,000 Texas Instruments 377,500
------------------
Telecommunications-Services and Equipment (7.19%)
35,000 ADC Telecommunications* 941,172
20,000 DMC Stratex Networks* 321,250
40,000 Ericsson Telephone 592,500
25,000 Worldcom* 759,375
45,000 Motorola 1,271,250
40,000 Nortel Networks 2,382,500
------------------
------------------
6,268,047
------------------
Utilities (0.77%)
30,000 Avista 675,000
------------------
Total Common Stocks 53,077,304
------------------
Mutual Funds (0.11%)
95,828 Government Assets Fund T Shares, 6.44%** 95,828
------------------
Total Investments in Securities (100.05%)
(Cost $74,923,680) $87,226,906
Other Assets & Liabilities (-0.05%) (45,375)
------------------
Net Assets (100.00%) $87,181,531
==================
----------------
* Represents non-income producing securities. ** Rate shown is as of September
30, 2000.
*** Principal only represents securities that entitle holders to receive only
principal payments on the underlying mortgages. The yield to maturity of
principal only is sensitive to the rate of principal payments on the
underlying mortgages. A slow
(rapid) rate of principal repayments may have an adverse (positive) effect
on yield to maturity. The interest rate disclosed represents the current
yield at date of purchase.
<PAGE>
The Vintage Equity Fund
The market volatility for the first six months of our fiscal year shows through
quite clearly in the price of the Fund, yet it ended the six months (September
30, 2000) up 2.1%. We expect volatility to continue in the coming months. The
new regulation FD (fair disclosure) is an unknown factor going forward and may
have some additional effect on volatility.
The Fund holdings will continue to be focused on larger capitalization companies
in the growth sector of the economy. Our present heavier concentrations in
Finance, Healthcare, and Energy will be maintained as we see further dynamic
growth in these areas both in earnings and in price action. We maintain a
slightly overweight position in Technology as we see the great need for more
Technology to maintain the productivity numbers needed to hold down inflation.
We continue to stress diversification of our assets to participate in the many
growth sectors of our economy. The top Fund holdings include Pfizer
(Pharmaceuticals), Morgan Stanley (Finance), Nortel (Communications-Technology)
and General Electric (Capital Goods-Finance, etc.). These and other Fund
holdings offer great opportunity to increase earnings and market share and
subsequently stock appreciation.
For the six months ended September 30, 2000, the Fund provided a total return of
0.52 percent for S class shareholders and 0.64 percent for T class shareholders.
The Fund ended the period with combined net assets of $556.1 million.
VINTAGE MUTUAL FUNDS, INC.
Equity Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Shares Description Value
----------------------------------------------------------------------------------------------------------------------------
Common Stocks (99.11%)
Banking (5.98%)
180,000 Bank of America 9,427,500
220,000 Bank of New York 12,333,750
250,000 Wells Fargo 11,484,375
-------------------
33,245,625
-------------------
Biotechnology (4.55%)
240,000 Amgen* 16,758,750
140,000 Biogen* 8,540,000
-------------------
-------------------
25,298,750
-------------------
Broadcasting (1.42%)
140,000 Clear Channel Communications* 7,910,000
-------------------
Business Services (2.62%)
240,000 American Express 14,580,000
-------------------
Computer Hardware (6.15%)
260,000 Cisco Systems, Inc.* 14,365,000
200,000 EMC* 19,825,000
-------------------
34,190,000
-------------------
Computer - Software and Peripherals (3.51%)
170,000 Citrix Systems* 3,410,625
150,000 Microsoft* 9,037,500
90,000 Oracle* 7,087,500
-------------------
19,535,625
-------------------
Diversified (4.00%)
130,000 Minnesota Mining and Manufacturing 11,846,250
200,000 Tyco International 10,375,000
-------------------
22,221,250
-------------------
Electrical & Electronic (6.80%)
300,000 General Electric 17,306,250
360,000 General Motors H* 13,384,800
200,000 Honeywell 7,125,000
-------------------
37,816,050
-------------------
Energy (1.90%)
250,000 Williams 10,562,500
-------------------
Financial Services (10.77%)
200,000 Chase Manhattan 9,237,500
200,000 Citigroup 10,812,500
200,000 Federal Home Loan Mortgage 10,812,500
150,000 Fannie Mae 10,725,000
200,000 Morgan Stanley Dean Witter 18,287,500
-------------------
59,875,000
-------------------
Health Care Products and Services (2.87%)
200,000 Baxter International 15,962,500
-------------------
Home Furnishings (0.43%)
104,000 Newell Rubbermaid 2,372,500
-------------------
Insurance (2.92%)
170,000 American International Group 16,266,875
-------------------
Internet Related (3.13%)
140,000 America Online* 7,525,000
200,000 Exodus Communications* 9,875,000
-------------------
-------------------
17,400,000
-------------------
Oil & Gas Exploration Products & Services (11.02%)
120,000 Anadarko Petroleum 7,975,200
140,000 Apache 8,277,500
200,000 El Paso Energy 12,325,000
130,000 Enron 11,391,250
200,000 Halliburton 9,787,500
140,000 Schlumberger 11,523,750
-------------------
61,280,200
-------------------
Pharmaceuticals (8.12%)
250,000 American Home Products 14,140,625
150,000 Lilly (Eli) & Co. 12,168,750
420,000 Pfizer 18,873,750
-------------------
45,183,125
-------------------
Retail - General Merchandise (2.69%)
320,000 Target 8,200,000
140,000 Walmart 6,737,500
-------------------
14,937,500
-------------------
Retail - Specialty Stores (3.40%)
150,000 CVS Corp 6,946,875
225,000 Home Depot 11,939,063
-------------------
18,885,938
-------------------
Semiconductors (3.62%)
120,000 Intel 4,995,000
170,000 Vitesse Semiconductor* 15,119,375
-------------------
20,114,375
-------------------
Technology (2.21%)
260,000 Texas Instruments 12,268,750
-------------------
Telecommunications - Services and Equipment (11.00%)
200,000 ADC Telecommunications* 5,378,125
200,000 Lucent Technologies 6,112,500
180,000 Verizon 8,718,750
260,000 Worldcom* 7,897,500
300,000 Motorola 8,475,000
300,000 Nortel Networks 17,868,750
140,000 Qwest Communications 6,728,750
-------------------
61,179,375
-------------------
Total Common Stocks 551,085,938
-------------------
Mutual Funds (0.35%)
5,156,623 Government Assets Fund T Shares, 6.44%** 5,156,623
-------------------
Total Investments in Securities (100.04%)
(Cost $340,466,887) $556,242,561
Other Assets & Liabilities (-0.04%) (190,694)
-------------------
Net Assets (100.00%) $556,051,867
===================
----------------
* Represents non-income producing securities. ** Rate shown is as of September
30, 2000.
<PAGE>
The Vintage Aggressive Growth Fund
The Aggressive Growth Fund ended the period with overweight positions in the
technology, healthcare and energy sectors. Over the last six months the major
change in the Fund is the increased weighting in the Healthcare sector. The Fund
has increased its exposure from 13% to 24% as a result of adding biotech and
genomic holdings. We believe the genomics industry is at the forefront of
spectacular growth, similar to the PC industry in the 1970's. The technology
sector weighting has declined over the past several months due to taking profits
during strong performance in August and then a weak NASDAQ in September. The
sectors with declining emphasis were basic materials, capital goods and consumer
staples. We continue to emphasize companies with fast top and bottom line growth
rates.
As of Sept. 30, 2000, the Fund's top holdings included Fannie Mae, Vitesse Semiconductor, Redback Networks, American Home Products,
and Bank of New York.
For the six months ended September 30, 2000, the Fund provided a total return of
0.34 percent. The Fund ended the period with net assets of $153.2 million.
VINTAGE MUTUAL FUNDS, INC.
Aggressive Growth
Schedule of Portfolio Investments (Unaudited)
September 30, 2000
Shares Description Value
---------------------------------------------------------------------------------------------------------------------------
Common Stocks (95.23%)
Banking (2.56%)
70,000 Bank of New York 3,924,375
-----------------
Basic Materials (0.29%)
10,000 Sealed Air* 452,500
-----------------
Biotechnology (9.51%)
35,000 Amgen* 2,443,984
15,000 Biogen* 915,000
6,000 Biomatrix* 105,000
20,000 Diversa* 540,000
5,000 Genentech* 928,438
20,000 Genzyme* 1,363,750
5,000 Immunex* 217,500
10,000 Incyte Genomics* 411,250
14,000 Inhale Therapeutic* 789,250
28,000 PE Corp 3,262,000
5,000 Celera Genomics* 498,125
20,000 Perkinelmer 2,087,500
5,000 Techne* 560,000
5,000 Waters* 445,000
-----------------
14,566,797
-----------------
Broadcasting (1.66%)
45,000 Clear Channel Communications* 2,542,500
-----------------
Capital Goods (0.47%)
15,000 Millipore 726,563
-----------------
Computer Hardware (0.72%)
20,000 Cisco Systems* 1,105,000
-----------------
Computer - Software and Peripherals (1.44%)
35,000 Citrix Systems* 702,188
10,000 Oracle* 787,500
5,000 Veritas Software* 710,000
-----------------
2,199,688
-----------------
Diversified (0.97%)
5,000 Corning 1,485,000
-----------------
Electrical & Electronic (1.20%)
40,000 Solectron* 1,845,000
-----------------
Energy (1.89%)
15,000 Dynegy 855,000
50,000 Kinder Morgan 2,046,875
-----------------
2,901,875
-----------------
Entertainment (1.02%)
20,000 Time Warner 1,565,000
-----------------
Financial Services (8.08%)
40,000 Chase Manhattan 1,847,500
46,666 Citigroup 2,522,881
65,000 Fannie Mae 4,647,500
20,000 Morgan Stanley Dean Witter 1,828,750
35,200 Stilwell Financial 1,531,200
-----------------
12,377,831
-----------------
Health Care Products and Services (3.59%)
48,000 Baxter International 3,831,000
48,600 Edwards Lifesciences* 1,060,087
25,000 Stericycle* 612,500
-----------------
5,503,587
-----------------
Industrial Goods & Services (0.68%)
15,000 United Technologies 1,038,750
-----------------
Internet Related (5.70%)
20,000 Netegrity* 1,400,000
30,000 Niku* 731,250
15,000 Phone.com* 1,704,375
5,000 Selectica* 199,375
55,000 Vignette* 1,643,125
26,500 Webmethods* 3,050,812
-----------------
8,728,937
-----------------
Materials (0.50%)
30,000 Alcoa 759,375
-----------------
Medical Equipment & Supplies (3.06%)
15,000 Arthocare* 291,563
50,000 Guidant* 3,534,375
20,000 Varian* 861,250
-----------------
4,687,188
-----------------
Oil & Gas Exploration Products & Services (11.24%)
20,000 Coastal 1,482,500
18,200 Devon Energy 1,094,730
40,000 Enron 3,505,000
35,000 Halliburton 1,712,812
20,000 Schlumberger 1,646,250
70,000 Seitel 1,006,250
35,000 Core Laboratories 859,688
10,000 Hanover Compressor 329,375
54,840 Transocean Sedco Forex 3,214,995
55,000 Weatherford International* 2,365,000
-----------------
17,216,600
-----------------
Pharmaceuticals (7.57%)
10,000 Alpharma 611,250
25,000 Alza* 2,162,500
70,000 American Home Products 3,959,375
43,000 Bristol-Myers Squibb 2,456,375
9,400 Elan ADR* 514,650
20,000 Mylan Laboratories 538,750
30,000 Pfizer 1,348,125
-----------------
11,591,025
-----------------
Retail - General Merchandise (0.50%)
30,000 Target 768,750
-----------------
Retail - Specialty Stores (2.09%)
10,000 Best Buy* 636,250
57,300 Lowe's 2,571,337
-----------------
3,207,587
-----------------
Semiconductors (4.79%)
5,000 Globespan* 610,000
60,000 Intel 2,497,500
47,500 Vitesse Semiconductor* 4,224,531
-----------------
7,332,031
-----------------
Technology (5.78%)
20,000 Amphenol* 1,138,750
22,500 Inktomi* 2,565,000
45,000 Parametric Technology* 492,187
30,000 Signalsoft* 1,218,750
17,300 Speechworks International* 1,072,600
30,000 Symbol Technologies* 1,078,125
48,500 Versata* 1,285,250
-----------------
8,850,662
-----------------
Telecommunications Services & Equipment (19.49%)
104,000 ADC Telecommunications* 2,796,625
15,000 Aether Systems* 1,582,500
27,500 Avenex* 2,961,406
70,000 DMC Stratex Networks* 1,124,375
30,000 Ericsson Telephone* 444,375
40,000 Netro* 2,370,000
20,000 Onis Systems* 1,726,250
25,000 Redback Networks* 4,098,438
55,000 Remec* 1,619,062
10,000 Sonus Networks* 1,263,750
15,000 Sycamore Networks* 1,620,000
37,500 Worldcom* 1,139,063
80,000 Motorola 2,260,000
20,000 Next Level Communications 1,322,500
15,000 Nortel Networks 893,437
15,000 QUALCOMM* 1,068,750
50,000 RF Micro Devices* 1,568,750
-----------------
29,859,281
-----------------
Utilities (0.43%)
10,000 Kansas City Power and Light 266,875
10,000 Texas Utilities 396,250
-----------------
663,125
-----------------
Total Common Stocks 145,899,027
-----------------
Mutual Funds (6.83%)
3,777,153 Fedelity Institutional Money Market, 6.21%** 3,777,153
6,688,688 Government Assets Fund T Shares, 6.44%** 6,688,688
-----------------
10,465,841
-----------------
Total Investments in Securities (102.06%)
(Cost $139,141,290) $156,364,868
Other Assets & Liabilities (-2.06%) (3,153,442)
-----------------
Net Assets (100.00%) $153,211,426
=================
----------------
* Represents non-income producing securities. ** Rate shown is as of September
30, 2000.
</TABLE>
<TABLE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2000
<CAPTION>
Government Liquid Municipal Limited
Assets Assets Assets Term Bond
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
--------------- --------------- --------------- ---------------
ASSETS:
Investments, at value $165,423,353 $113,648,311 $35,802,355 $50,262,142
Repurchase agreements 19,016,147 25,773,082 ----- -----
--------------- --------------- --------------- ---------------
Total Investments (Cost $184,439,500; $139,421,393;
$35,802,355; $50,707,109; $30,978,085)
Total Investments 184,439,500 139,421,393 35,802,355 50,262,142
Interest and dividends receivable 571,158 2,213,984 216,565 739,102
Receivable from brokers for investments sold ----- ----- ----- -----
Receivable for capital shares issued 740 ----- ----- 954
Total Assets 185,011,398 141,635,377 36,018,920 51,002,198
--------------- --------------- --------------- ---------------
LIABILITIES:
Dividends payable 868,082 654,753 106,011 218,652
Payable to brokers for investments purchased ----- ----- ----- -----
Payable for capital shares redeemed ----- ----- ----- -----
Accrued expenses and other payables:
Investment advisory fees 52,379 41,063 10,179 20,812
Administration fees 31,428 24,638 6,107 10,822
Accounting fees 4,490 3,520 872 1,249
Distribution fees ----- 82,088 1,050 -----
Servicing Fees ----- 65,288 4,176 -----
Other 27,505 21,722 3,580 7,628
--------------- --------------- --------------- ---------------
Total Liabilities 983,884 893,072 131,975 259,163
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
NET ASSETS: 184,027,514 140,742,305 35,886,945 50,743,035
=============== =============== =============== ===============
Paid-in capital 184,043,880 140,742,305 35,886,945 52,240,166
Accumulated undistributed (distributions in excess of)
net investment income ----- ----- ----- (148,553)
Net unrealized appreciation on investments ----- ----- ----- (444,967)
Accumulated undistributed net realized gains (losses)
on investment transactions (16,366) ----- ----- (903,611)
--------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Net Assets $184,027,514 $140,742,305 $35,886,945 $50,743,035
=============== =============== =============== ===============
Capital Shares Outstanding 5,208,798
===============
Net asset value--offering and redemption price per share $9.74
===============
Pricing of S Shares
Net assets applicable to S Shares outstanding $73,231,503 $3,022,963
=============== ===============
Shares outstanding, $.001 par value 73,231,503 3,022,963
=============== ===============
Net asset value--offering and redemption price per share $1.00 $1.00
=============== ===============
Pricing of S2 Shares
Net assets applicable to S2 Shares outstanding $9,129,073
===============
Shares outstanding, $.001 par value 9,129,073
===============
Net asset value--offering and redemption price per share $1.00
===============
Pricing of T Shares
Net assets applicable to T Shares outstanding $184,027,514 $27,739,964 $5,819,769
=============== =============== ===============
Shares outstanding, $.001 par value 184,043,880 27,739,964 5,819,769
=============== =============== ===============
Net asset value--offering and redemption price per share $1.00 $1.00 $1.00
=============== =============== ===============
Pricing of I Shares
Net assets applicable to I Shares outstanding $30,641,765 $27,044,213
=============== ===============
Shares outstanding, $.001 par value 30,641,765 27,044,213
=============== ===============
Net asset value--offering and redemption price per share $1.00 $1.00
=============== ===============
</TABLE>
<TABLE>
<CAPTION>
Municipal Aggressive
Bond Income Bond Balanced Equity Growth
Fund Fund Fund Fund Fund Fund
-------------------------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
$30,624,530 $111,581,941 $46,297,146 $87,226,906 $556,242,561 $156,364,868
----- ----- ----- ----- ----- -----
----------------------------------------------------------------------------------------------------
30,624,530 111,581,941 46,297,146 87,226,906 556,242,561 156,364,868
430,355 1,496,180 655,453 459,889 146,372 43,526
----- ----- ----- ----- 1,448,080 1,288,107
----- 1,500 ----- 25,000 20,662 11,265
-------------------------------- --------------- --------------- --------------- ---------------
31,054,885 113,079,621 46,952,599 87,711,795 557,857,675 157,707,766
-------------------------------- --------------- --------------- --------------- ---------------
152,131 550,860 148,670 441,455 ----- -----
24,500 ----- ----- ----- 1,161,012 4,316,094
----- ----- ----- ----- ----- -----
13,717 55,154 19,228 55,393 352,407 123,184
6,484 23,900 9,999 19,203 122,168 33,714
748 2,758 1,154 2,216 14,097 3,890
----- ----- ----- ----- ----- -----
----- ----- ----- ----- 64,614 -----
5,291 7,573 10,374 11,997 91,510 19,458
-------------------------------- --------------- --------------- --------------- ---------------
202,871 640,245 189,425 530,264 1,805,808 4,496,340
-------------------------------- --------------- --------------- --------------- ---------------
-------------------------------- --------------- --------------- --------------- ---------------
30,852,014 112,439,376 46,763,174 87,181,531 556,051,867 153,211,426
================================ =============== =============== =============== ===============
31,265,255 117,268,121 46,658,285 67,786,057 290,792,145 95,830,972
5,389 (336,498) 5,167 4,462 (1,020,530) (904,005)
(353,555) (1,904,887) 368,132 12,303,227 215,775,674 17,223,578
(65,075) (2,587,360) (268,410) 7,087,785 50,504,578 41,060,881
---------------
-------------------------------- --------------- --------------- --------------- ---------------
$30,852,014 $112,439,376 $46,763,174 $87,181,531 $556,051,867 $153,211,426
================================ =============== =============== =============== ===============
3,193,059 11,594,157 4,523,208 5,443,844 23,704,067 7,450,689
================================ =============== =============== ===============
$9.66 $9.70 $10.34 $16.01 $20.56
================================ =============== =============== ===============
$306,105,840
===============
13,082,829
===============
$23.40
===============
$249,946,027
===============
10,621,238
===============
$23.53
===============
</TABLE>
<TABLE>
<CAPTION>
VINTAGE MUTUAL FUNDS, INC.
Statements of Operations (Unaudited)
For the Six Months Ended September 30, 2000
Government Liquid Municipal Limited
Assets Assets Assets Term Bond
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $5,790,202 $5,199,163 $848,180 $1,629,669
Dividend income
--------------- ---------------- --------------- ---------------
--------------- ---------------- --------------- ---------------
Total Income 5,790,202 5,199,163 848,180 1,629,669
--------------- ---------------- --------------- ---------------
EXPENSES: (Note 4)
Investment advisory fees 364,211 279,369 69,240 129,647
Administration fees 191,211 167,622 41,544 67,417
Distribution and shareholder service fees S Shares ----- 290,455 11,067 -----
Distribution and shareholder service fees S2 Shares ----- 17,053 ----- -----
Distribution and shareholder service fees T Shares ----- 22,525 5,526 -----
Custody fees 8,000 18,522 7,052 2,193
Accounting fees 27,316 23,946 5,935 7,779
Legal fees 5,589 4,144 735 940
Audit fees 6,565 4,201 2,733 2,942
Directors' fees 7,824 7,518 1,897 1,613
Transfer agent fees 35,040 27,409 9,585 10,591
Registration and filing fees 3,257 7,885 1,069 137
Printing fees 9,207 7,658 2,153 1,660
Other 1,405 15,443 980 3,876
--------------- ---------------- --------------- ---------------
Total Expenses 659,625 893,750 159,516 228,795
Less: Expenses voluntarily reduced/waived (45,526) ----- ----- -----
--------------- ---------------- --------------- ---------------
Net Expenses 614,099 893,750 159,516 228,795
--------------- ---------------- --------------- ---------------
Net Investment Income (Loss) 5,176,103 4,305,413 688,664 1,400,874
--------------- ---------------- --------------- ---------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment transactions ----- ----- ----- (47,586)
Net change in unrealized appreciation (depreciation)
from investments ----- ----- ----- 640,083
--------------- ---------------- --------------- ---------------
Net realized and unrealized gains (losses) from investments ----- ----- ----- 592,497
--------------- ---------------- --------------- ---------------
--------------- ---------------- --------------- ---------------
Change in net assets resulting from operations $5,176,103 $4,305,413 $688,664 $1,993,371
=============== ================ =============== ===============
</TABLE>
<TABLE>
<CAPTION>
Municipal Aggressive
Bond Income Bond Balanced Equity Growth
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
$1,052,651 $3,943,316 $1,168,073 $1,284,687 $164,777 $137,251
195,196 2,611,307 268,198
-------------- --------------- --------------- ----------------
-------------- --------------- --------------- ---------------- ------------------ ----------------
1,052,651 3,943,316 1,168,073 1,479,883 2,776,084 405,449
-------------- --------------- --------------- ---------------- ------------------ ----------------
79,020 329,787 117,920 345,729 2,167,611 719,800
37,355 142,908 61,318 119,853 751,436 196,997
----- ----- ----- ----- 712,280 -----
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
5,240 2,166 1,041 1,836 14,171 4,221
4,310 16,490 7,075 13,830 86,707 22,731
813 1,110 247 624 18,789 2,413
3,465 1,250 546 869 16,235 1,410
1,325 2,770 506 1,548 31,900 4,188
9,258 5,022 1,929 1,071 160,287 21,439
522 183 254 279 5,117 1,309
1,563 2,083 340 1,125 29,556 4,089
1,652 10,865 404 5,169 895 5,242
-------------- --------------- --------------- ---------------- ------------------ ----------------
144,523 514,634 191,580 491,933 3,994,984 983,839
----- ----- ----- ----- ----- -----
-------------- --------------- --------------- ---------------- ------------------ ----------------
144,523 514,634 191,580 491,933 3,994,984 983,839
-------------- --------------- --------------- ---------------- ------------------ ----------------
908,128 3,428,682 976,493 987,950 (1,218,900) (578,390)
-------------- --------------- --------------- ---------------- ------------------ ----------------
(2,058) (175,551) (91,463) 2,312,942 8,180,226 15,694,387
374,420 1,154,533 520,364 (5,547,948) (3,868,997) (13,854,116)
-------------- --------------- --------------- ---------------- ------------------ ----------------
372,362 978,982 428,901 (3,235,006) 4,311,229 1,840,271
-------------- --------------- --------------- ---------------- ------------------ ----------------
-------------- --------------- --------------- ---------------- ------------------ ----------------
$1,280,490 $4,407,664 $1,405,394 ($2,247,056) $3,092,329 $1,261,881
============== =============== =============== ================ ================== ================
</TABLE>
<TABLE>
<CAPTION>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<S> <C> <C> <C> <C>
Government Assets Fund Liquid Assets Fund
----------------------------- ------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
September 30, 200March 31, 2000 September 30, 2000March 31, 2000
(Unaudited) (Unaudited)
---------------- ------------ --------------- ------------
OPERATIONS:
Net investment income (loss) $5,176,103 $8,324,671 $4,305,413 $7,626,088
Net realized gains/(losses) from investment
transactions ------ ------ ------ ------
Net change in unrealized appreciation/(depreciation)
from investments ------ ------ ------ ------
Change in net assets resulting from
---------------- ------------ --------------- ------------
operations $5,176,103 $8,324,671 $4,305,413 $7,626,088
---------------- ------------ --------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (2,302,277) (3,717,166)
S2 Shares ------ ------ (230,684) (460,850)
T Shares (5,176,103) (8,324,671) (852,882) (1,772,881)
I Shares ------ ------ (919,570) (1,675,191)
From net realized gains
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
Change in net assets from shareholder
---------------- ------------ --------------- ------------
distributions (5,176,103) (8,324,671) (4,305,413) (7,626,088)
---------------- ------------ --------------- ------------
CAPITAL SHARE TRANSACTIONS:
Issued:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 253,229,693 538,419,394
S2 Shares ------ ------ 51,919,325 111,866,302
T Shares 480,607,040 846,450,296 57,855,723 182,194,113
I Shares ------ ------ 72,245,019 199,538,337
Reinvestments:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 62,351 32
S2 Shares ------ ------ 15,239 16,925
T Shares 1,039,111 1,845,143 198,591 371,495
I Shares ------ ------ 347,180 431,555
Redemptions:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (271,763,326) (524,059,287)
S2 Shares ------ ------ (51,444,676) (111,495,909)
T Shares (468,429,455) (827,490,745) (61,933,308) (184,619,833)
I Shares ------ ------ (80,268,204) (178,403,349)
---------------- ------------ --------------- ------------
Change in net assets from capital transactions 13,216,696 20,804,694 (29,536,393) 34,259,775
---------------- ------------ --------------- ------------
Change in net assets 13,216,696 20,804,694 (29,536,393) 34,259,775
NET ASSETS:
Beginning of period 170,810,818 150,006,124 170,278,698 136,018,923
---------------- ------------ --------------- ------------
End of period $184,027,514 $170,810,818 $140,742,305 $170,278,698
================ ============ =============== ============
SHARE TRANSACTIONS:
Issued:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 253,229,693 538,419,394
S2 Shares ------ ------ 51,919,325 111,866,302
T Shares 480,607,040 846,450,296 57,855,723 182,194,113
I Shares ------ ------ 72,245,019 199,538,337
Reinvestments:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 62,351 32
S2 Shares ------ ------ 15,239 16,925
T Shares 1,039,111 1,845,143 198,591 371,495
I Shares ------ ------ 347,180 431,555
Redemptions:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (271,763,326) (524,059,287)
S2 Shares ------ ------ (51,444,676) (111,495,909)
T Shares (468,429,455) (827,490,745) (61,933,308) (184,619,833)
I Shares ------ ------ (80,268,204) (178,403,349)
---------------- ------------ --------------- ------------
Change In Shares 13,216,696 20,804,694 (29,536,393) 34,259,775
================ ============ =============== ============
Municipal Assets Fund Limited Term Bond Fund Bond Fund
------------------------------ ------------------------------- ------------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
September 30, 2000March 31, 2000September 30, 2000 March 31, 2000 September 30, 2000 March 31, 2000
(Unaudited) (Unaudited) (Unaudited)
----------------- ------------ --------------- ------------ --------------- -----------
$688,664 $1,177,158 $1,400,874 $2,726,552 908,128 1,560,796
------ ------ (47,586) (687,447) (2,058) (56,854)
------ ------ 640,083 (1,319,310) 374,420 (876,730)
----------------- ------------ --------------- ------------ --------------- -----------
$688,664 $1,177,158 1,993,371 719,795 1,280,490 627,212
----------------- ------------ --------------- ------------ --------------- -----------
------ ------ (1,400,874) (2,726,552) (908,128) (1,560,796)
(87,592) (178,816) ------ ------ ------ ------
------ ------ ------ ------ ------ ------
(124,719) (316,022) ------ ------ ------ ------
(476,353) (682,320) ------ ------ ------ ------
------ ------ ------ ------ ------ (1,197)
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
----------------- ------------ --------------- ------------ --------------- -----------
(688,664) (1,177,158) (1,400,874) (2,726,552) (908,128) (1,561,993)
----------------- ------------ --------------- ------------ --------------- -----------
------ ------ 5,689,961 15,410,324 5,709,117 15,103,396
11,851,425 39,086,068 ------ ------ ------ ------
------ ------ ------ ------ ------ ------
7,114,950 32,180,360 ------ ------ ------ ------
46,936,294 88,123,275 ------ ------ ------ ------
------ ------ 750,792 1,748,538 419,924 898,397
14,948 5,130 ------ ------ ------ ------
------ ------ ------ ------ ------ ------
19,018 27,067 ------ ------ ------ ------
2,143 6,053 ------ ------ ------ ------
------ ------ (8,797,423) (18,650,112) (2,988,536) (9,711,365)
(16,213,552) (39,615,509) ------ ------ ------ ------
------ ------ ------ ------ ------ ------
(12,639,771) (35,830,952) ------ ------ ------ ------
(46,018,572) (84,409,622) ------ ------ ------ ------
----------------- ------------ --------------- ------------ --------------- -----------
(8,933,117) (428,130) (2,356,670) (1,491,250) 3,140,505 6,290,428
----------------- ------------ --------------- ------------ --------------- -----------
(8,933,117) (428,130) (1,764,173) (3,498,007) 3,512,867 5,355,647
44,820,062 45,248,192 52,507,208 56,005,215 27,339,147 21,983,500
----------------- ------------ --------------- ------------ --------------- -----------
$35,886,945 $44,820,062 $50,743,035 $52,507,208 $30,852,014 $27,339,147
================= ============ =============== ============ =============== ===========
------ ------ 587,816 1,572,816 594,356 1,565,299
11,851,425 39,086,068 ------ ------ ------ ------
------ ------ ------ ------ ------ ------
7,114,950 32,180,360 ------ ------ ------ ------
46,936,294 88,123,275 ------ ------ ------ ------
------ ------ 77,948 178,632 44,048 93,513
14,948 5,130 ------ ------ ------ ------
----- ----- ------ ------ ------ ------
19,018 27,067 ------ ------ ------ ------
2,143 6,053 ------ ------ ------ ------
------ ------ (909,834) (1,896,841) (313,093) (1,015,918)
(16,213,552) (39,615,509) ------ ------ ------ ------
------ ------ ------ ------ ------ ------
(12,639,771) (35,830,952) ------ ------ ------ ------
(46,018,572) (84,409,622) ------ ------ ------ ------
----------------- ------------ --------------- ------------ --------------- -----------
(8,933,117) (428,130) (244,070) (145,393) 325,311 642,894
================= ============ =============== ============ =============== ===========
Income Fund Municipal Bond Fund Balanced Fund
------------------------------ ------------------------------ ----------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
September 30, 2000 March 31, 2000September 30, 2000 March 31, 2000September 30, 200March 31, 2000
(Unaudited) (Unaudited) (Unaudited)
----------------- ----------- ---------------- ----------- --------------- -----------
3,428,682 6,186,757 976,493 1,963,241 987,950 1,627,589
(175,551) (626,345) (91,463) (176,936) 2,312,942 11,038,633
1,154,533 (3,247,808) 520,364 (1,735,187) (5,547,948) 829,043
----------------- ----------- ---------------- ----------- --------------- -----------
4,407,664 2,312,604 1,405,394 51,118 (2,247,056) 13,495,265
----------------- ----------- ---------------- ----------- --------------- -----------
(3,428,682) (6,186,757) (976,493) (1,963,241) (987,950) (1,627,589)
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ (148,801) ------ (8,381,080)
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
----------------- ----------- ---------------- ----------- --------------- -----------
(3,428,682) (6,186,757) (976,493) (2,112,042) (987,950) (10,008,669)
----------------- ----------- ---------------- ----------- --------------- -----------
11,401,074 35,519,204 3,956,793 12,207,058 8,396,963 24,251,204
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
354,513 767,426 121,036 274,138 977,782 10,137,234
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
(9,781,426) (23,266,819) (6,359,808) (11,754,113) (15,646,000) (26,611,358)
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
----------------- ----------- ---------------- ----------- --------------- -----------
1,974,161 13,019,811 (2,281,979) 727,083 (6,271,255) 7,777,080
----------------- ----------- ---------------- ----------- --------------- -----------
2,953,143 9,145,658 (1,853,078) (1,333,841) (9,506,261) 11,263,676
109,486,233 100,340,575 48,616,252 49,950,093 96,687,792 85,424,116
----------------- ----------- ---------------- ----------- --------------- -----------
$112,439,376 $109,486,233 $46,763,174 $48,616,252 $87,181,531 $96,687,792
================= =========== ================ =========== =============== ===========
1,184,629 3,656,216 387,579 1,180,486 516,166 1,508,292
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
37,005 79,146 11,824 26,472 60,356 645,953
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
(1,017,649) (2,400,241) (622,107) (1,142,051) (963,866) (1,659,823)
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
----------------- ----------- ---------------- ----------- --------------- -----------
203,985 1,335,121 (222,704) 64,907 (387,344) 494,422
================= =========== ================ =========== =============== ===========
Equity Fund Aggressive Growth Fund
------------------------------- -----------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
September 30, 2000 March 31, 2000September 30, 200March 31, 2000
(Unaudited) (Unaudited)
----------------- ------------ --------------- ------------
(1,218,900) (1,026,536) (578,390) (904,083)
8,180,226 87,314,278 15,694,387 38,047,044
(3,868,997) 8,564,972 (13,854,116) 3,313,722
----------------- ------------ --------------- ------------
3,092,329 94,852,714 1,261,881 40,456,683
----------------- ------------ --------------- ------------
------ ------ ------ ------
------ ------ ------ ------
------ ------ ------ ------
------ ------ ------ ------
------ ------ ------ ------
------ ------ ------ (18,489,048)
------ (43,929,332) ------ ------
------ (38,814,887) ------ ------
----------------- ------------ --------------- ------------
------ (82,744,219) ------ (18,489,048)
----------------- ------------ --------------- ------------
------ ------ 46,907,273 67,283,603
60,211,855 94,744,150 ------ ------
------ ------ ------ ------
14,079,981 59,037,865 ------ ------
------ ------ ------ ------
------ ------ ------ 8,377,091
------ 42,158,486 ------ ------
------ ------ ------ ------
------ 11,202,725 ------ ------
------ ------ ------ ------
------ ------ (54,256,501) (59,881,586)
(80,662,529) (71,933,641) ------ ------
------ ------ ------ ------
(25,500,957) (96,497,623) ------ ------
------ ------ ------ ------
----------------- ------------ --------------- ------------
(31,871,649) 38,711,962 (7,349,228) 15,779,108
----------------- ------------ --------------- ------------
(28,779,320) 50,820,457 (6,087,347) 37,746,743
584,831,187 534,010,730 159,298,773 121,552,030
----------------- ------------ --------------- ------------
$556,051,867 $584,831,187 $153,211,426 $159,298,773
================= ============ =============== ============
------ ------ 2,434,079 3,629,932
2,556,074 4,075,596 ------ ------
------ ------ ------ ------
597,434 2,558,091 ------ ------
------ ------ ------ ------
------ ------ ------ 481,444
------ 1,919,780 ------ ------
------ ------ ------ ------
------ 508,291 ------ ------
------ ------ ------ ------
------ ------ (2,759,727) (3,229,283)
(3,435,953) (3,105,795) ------ ------
------ ------ ------ ------
(1,085,839) (4,182,033) ------ ------
------ ------ ------ ------
----------------- ------------ --------------- ------------
(1,368,284) 1,773,930 (325,648) 882,093
================= ============ =============== ============
</TABLE>
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
Notes to Financial Statements (Unaudited)
September 30, 2000
1. Organization:
IMG Mutual Funds, Inc. was incorporated on November 16, 1994 and capitalized on
May 1, 1995. IMG Mutual Funds, Inc. was renamed Vintage Mutual Funds, Inc., (the
"Fund"), in February 1998. The Fund is registered under the Investment Company
Act of 1940 (the "1940 Act"), as amended, as a diversified open-end management
investment company issuing its shares in ten series, each series representing a
diversified portfolio with distinct investment objectives and policies. The
Government Assets Fund's investment objective is to seek current income
consistent with maintaining liquidity and stability of principal by investing
exclusively in short-term U.S. Treasury bills, notes and other short-term
obligations issued or guaranteed by the U.S. Government or its agencies or
instrumentalities, and repurchase agreements with respect thereto. The
investment objective of the Liquid Assets Fund is maximum current income
consistent with safety of principal and maintenance of liquidity. The investment
objective of the Municipal Assets Fund is maximum current income exempt from
federal income tax, consistent with safety of principal and maintenance of
liquidity. The investment objective of the Vintage Limited Term Bond Fund is to
seek total return from a portfolio of limited term fixed income securities. The
Vintage Limited Term Bond Fund invests primarily in a diversified portfolio of
fixed income securities including certain types of fixed income securities that
may exhibit greater volatility. The Vintage Bond Fund's investment objective is
to obtain income by investing in a portfolio of fixed income securities and,
secondarily, to seek capital appreciation consistent with the preservation of
capital and prudent investment risk. The Vintage Bond Fund will invest at least
65 percent of its total assets in High-Quality Fixed Income Securities at all
times. The investment objective of the Vintage Income Fund is to seek current
income, consistent with the preservation of capital. The Vintage Income Fund
invests primarily in fixed income securities. The investment objective of the
Vintage Municipal Bond Fund is to seek current income, consistent with the
preservation of capital, that is exempt from federal income taxes. The Vintage
Municipal Bond Fund invests primarily in a diversified portfolio of tax-exempt
fixed income securities. The investment objective of the Vintage Balanced Fund
is to seek long-term growth of capital and income. The Vintage Balanced Fund
invests primarily in a diversified portfolio of equity securities and fixed
income securities. The investment objective of the Vintage Equity Fund is
long-term capital appreciation. The Vintage Equity Fund invests primarily in a
diversified portfolio of equity securities of mainly large capitalization
companies with strong earnings potential. The investment objective of the
Vintage Aggressive Growth Fund is long-term capital growth. The Vintage
Aggressive Growth Fund invests primarily in common stocks and other equity-type
securities of small, medium and large capitalized companies that exhibit a
strong potential for price appreciation relative to other equity securities.
Liquid Assets Fund and Municipal Assets Fund offer three classes of shares. S
Shares are offered to customers of banks. S Shares are normally offered through
financial institutions providing automatic "sweep" investment programs to their
own customers. T Shares may be purchased only by financial institutions acting
on their own behalf or on behalf of certain customers' accounts. I Shares may be
purchased by individual and institutional investors directly from the Fund's
Distributor. T Shares and I Shares accrue daily dividends in the same manner as
S Shares except each class bears separate distribution and/or shareholder
servicing fees. Liquid Assets Fund also offers S2 Shares through financial
institutions providing automatic "sweep" investment programs to their own
customers.
The Vintage Equity Fund offers two classes of shares. T Shares of the Vintage
Equity Fund are offered solely to fiduciary accounts of AMCORE Investment Group,
N. A., over which AMCORE Investment Group, N. A., exercises investment
discretion. The Vintage Equity Fund also offers S Shares which accrue daily
dividends in the same manner as T Shares except each class bears separate
distribution and/or shareholder administrative servicing fees.
Each class of shares has equal rights to earnings, assets, and voting privileges
except each class bears different distribution expenses. Each class of shares
has exclusive voting rights on matters affecting only that class. Income,
expenses (other than expenses attributable to a specific class), and realized
and unrealized gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
<PAGE>
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Fund in the preparation of the financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
Securities Valuation
Investments of the Government Assets Fund, the Liquid Assets Fund and the
Municipal Assets Fund (the "money market funds") are valued at amortized cost,
which approximates market value. Under the amortized cost method of valuation,
discount or premium is amortized on a constant basis to the maturity of the
security. In addition, the money market funds may not (a) purchase any
instrument with a remaining maturity greater than 397 days unless such
investment is subject to a demand feature, or (b) maintain a
dollar-weighted-average portfolio maturity which exceeds 90 days.
Investments in common and preferred stocks, commercial paper, corporate bonds,
municipal bonds, U.S. Government securities and U.S. Government agency
securities of the Vintage Limited Term Bond Fund, the Vintage Bond Fund, the
Vintage Income Fund, the Vintage Municipal Bond Fund, the Vintage Balanced Fund,
the Vintage Equity Fund and the Vintage Aggressive Growth Fund (collectively the
"variable net asset funds") are valued at their market values determined on the
basis of the latest available bid quotation in the principal market (closing
sales prices if the principal market is an exchange) in which such securities
are normally traded. Fixed income securities held in the variable net asset
funds are valued on the basis of valuations furnished by a pricing service that
utilizes electronic data processing techniques to determine valuations for
normal institutional sized trading units of fixed income securities without
regard to sale or bid prices when such valuations are believed to more
accurately reflect the fair market value of such institutional securities.
Otherwise sale or bid prices are used. Fixed income securities having maturities
of 60 days or less are valued by the amortized cost method. Investments in
investment companies are valued at their respective net asset values as reported
by such companies. Securities, including restricted securities, for which market
quotations are not readily available, are valued at fair market value as
determined in good faith by the investment adviser under the supervision of the
Fund's Board of Directors. The difference between the cost and market values of
investments held by the variable net asset funds is reflected as either
unrealized appreciation or depreciation.
Security Transactions and Related Income
Security transactions are accounted for on the date the security is purchased or
sold ("trade date"). Interest income is recognized on the accrual basis.
Original issue discounts and premiums on securities purchased are amortized over
the expected life of the respective securities. Dividends are recorded on the
ex-dividend date. Gains or losses realized on sales of securities are determined
on the identified cost basis.
Repurchase Agreements
The Funds may engage in repurchase agreements with financial institutions such
as banks, brokers, or dealers that the investment adviser, Investors Management
Group, ("IMG"), deems creditworthy under guidelines approved by the Fund's Board
of Directors, subject to the seller's agreement to repurchase such securities at
a mutually agreed-upon date and price. An independent custodian must receive
delivery of the underlying securities. The market value of these securities
(including accrued interest) on acquisition date is required to be an amount
equal to 102% of the resale price, and will not be less than 100% of the resale
price over the term of the agreement. The repurchase price generally equals the
price paid plus interest negotiated on the basis of current short-term rates,
which may be more or less than the rate on the underlying portfolio securities.
The seller, under an agreement to repurchase, is required to maintain, with the
Fund's custodian, the value of collateral held pursuant to the agreement at not
less than the repurchase price (including accrued interest). Securities subject
to repurchase agreements are held by the Fund's custodian, another qualified
custodian or in the Federal Reserve/Treasury book-entry system.
Loan Certificates
The Liquid Assets Fund may invest in FmHA Guaranteed Loan Certificates which
represent interests in the guaranteed portion of Farmer's Home Administration
("FmHA") loans issued by one or more guaranteed loan trusts subject to
repurchase on no more than five business days' written notice. The Loan
Certificates are diversified through limitations on certificates sold by any one
individual bank.
Trust Certificates
The Liquid Assets Fund may invest in U. S. Government Guaranteed Student Loans
(the Trust) which represent interests in student loans sold by certain Iowa
banks subject to repurchase on no more than seven days' written notice. The
Trust and the Trust Certificates are diversified through a limitation on
certificates sold by any individual bank. Each individual bank may not sell more
than five percent of the outstanding Trust Certificates.
Securities Purchased on a When-Issued of Delayed-Delivery Basis
Each fund may purchase securities on a when-issued or delayed-delivery basis.
When-issued securities are securities purchased with delivery to occur at a
later date at a stated price and/or yield, thereby involving the risk that the
price and/or yield obtained may be more or less than those available in the
market when delivery takes place. At the time a Fund makes commitment to
purchase a security on a when-issued basis, the Fund records the transaction and
reflects the value of the security in determining net asset value. A segregated
account is established and the Fund maintains cash and marketable securities at
least equal in value to commitments for when-issued securities.
Dividends to Shareholders
Dividends from net investment income are declared daily and paid monthly for the
Government Assets Fund, the Liquid Assets Fund and the Municipal Assets Fund.
Dividends from net investment income are declared and paid monthly for the
Vintage Limited Term Bond Fund, the Vintage Bond Fund, the Vintage Income Fund
and the Vintage Municipal Bond Fund. Dividends from net investment income are
declared and paid quarterly for the Vintage Balanced Fund, the Vintage Equity
Fund and the Vintage Aggressive Growth Fund. Distributable net realized capital
gains, if any, are declared and distributed at least annually for each of the
Funds.
Federal Taxes
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute taxable
income to shareholders in amounts that will avoid or minimize federal income or
excise taxes of the Fund. Net investment income and net realized gains (losses)
for the Funds may differ for financial statement and tax purposes. The character
of distributions made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the income or
realized gains (losses) were recorded by the Funds.
Expenses
Expenses directly related to one of the Funds are charged to that Fund. Expenses
relating to the Funds collectively are prorated to the Funds on the basis of
each Fund's relative net assets.
<PAGE>
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the six
months ended September 30, 2000 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Proceeds
Purchases from Sales
Limited Term Bond Fund.......................................................$12,987,630 $5,959,373
Bond Fund.....................................................................$7,115,451 $411,045
Income Fund..................................................................$12,396,296 $6,812,008
Municipal Bond Fund...........................................................$5,948,380 $5,950,305
Balanced Fund................................................................$21,479,085 $21,842,581
Equity Fund.................................................................$202,629,845 $236,747,011
Aggressive Growth Fund......................................................$105,988,717 $115,219,647
</TABLE>
4........Related Party Transactions:
Under the terms of its Investment Advisory Agreement, Investors Management Group
(IMG), a wholly owned subsidiary of AMCORE Financial, Inc., is entitled to
receive fees computed daily on a percentage of the average daily net assets of
each fund as follows:
Government Assets Fund 0.40 percent
Liquid Assets Fund 0.35 percent
Municipal Assets Fund 0.35 percent
Vintage Limited Term Bond Fund 0.50 percent
Vintage Bond Fund 0.55 percent
Vintage Income Fund 0.60 percent
Vintage Municipal Bond Fund 0.50 percent
Vintage Balanced Fund 0.75 percent
Vintage Equity Fund 0.75 percent
Vintage Aggressive Growth Fund 0.95 percent
Beginning July 29, 1998, IMG voluntarily limited advisory fees for the
Government Assets Fund to 0.35 percent.
The Funds have entered into a management and administration agreement with IMG
pursuant to which the Funds pay administrative fees at an annual rate of 0.21
percent of the average daily net assets for the Government Assets Fund, the
Liquid Assets Fund and the Municipal Assets Fund and 0.26 percent of the average
daily net assets for all other Vintage Mutual Funds.
The Funds have adopted an Administrative Services Plan (the "Services Plan")
pursuant to which each Fund is authorized to pay compensation to banks and other
financial institutions (each a "Participating Organization"), which may include
AMCORE Financial, Inc., its correspondent and affiliated banks, which agree to
provide certain ministerial, recordkeeping and/or administrative support
services for their customers or account holders (collectively, "customers") who
are beneficial or record owner of Shares of that Fund. In consideration for such
services, a Participating Organization receives a fee from a Fund, computed
daily and paid monthly, at an annual rate of up to 0.25 percent of the average
daily net asset value of Shares of that Fund owned beneficially or of record by
such Participating Organization's customers for whom the Participating
Organization provides such services. During the six month period ended September
30, 2000, AMCORE Financial, Inc. received $44,664, $8,578, and $396,409 from the
Liquid Assets Fund, the Municipal Assets Fund, and the Vintage Equity Fund,
respectively.
BISYS Fund Services Limited Partnership serves as distributor to the Fund
pursuant to a Distribution Agreement. The Distributor receives no compensation
under the Distribution Agrement with the Fund, but may receive compensation
under a Distribution and Shareholder Service Plan (the "Plan") adopted pursuant
to Rule 12b-1 under the 1940 Act under which the Funds are authorized to pay the
Distributor for payments it makes to Participating Organizations. As authorized
by the Plan, the Distributor will enter into Shareholder Agreements with
Participating Organizations, including AMCORE Financial, Inc., or its
affiliates, pursuant to which the Participating Organization agrees to provide
certain administrative and shareholder support services in connection with
Shares of a Fund purchased and held by Customers of the Participating
Organization. The Distributor will be compensated by a Fund up to the amount of
any payments it makes to Participating Organizations under the Rule 12b-1
Agreement. The maximum fee is 0.50 percent on S Shares of the Liquid Assets Fund
and 0.25 percent on all other Classes and Funds. Currently, such fees are
limited to 0.40 percent for S Shares of the Liquid Assets Fund, 0.15 percent for
S2 Shares of the Liquid Assets Fund, 0.15 percent for S Shares of the Municipal
Assets Fund and 0.00 percent for all other Classes and Funds. However, IMG as
Advisor and Administrator of the Fund may in its sole discretion make payments
to the Distributor to supplement shareholder fees paid by the Fund up to the
maximum fee approved by the Plan without further notice to shareholders and at
no cost to the Fund.
IMG also serves as the Fund's transfer agent to certain classes of the
Government Assets, Liquid Assets and Municipal Assets Funds, pursuant to a
Transfer Agency Agreement with the Funds and receives a fee for such services.
BISYS Fund Services, Inc., ("BISYS") serves as transfer agent to the other
classes and Funds pursuant to a Transfer Agency Agreement with the Funds and
receives a fee for such services. IMG also provides fund accounting services for
the Funds pursuant to a Fund Accounting Agreement and receives a fee of 0.03
percent of the average daily net assets of each Fund for such services.
<PAGE>
<TABLE>
<CAPTION>
VINTAGE MUTUAL FUNDS, Inc.
Financial Highlights
Investment Activities Dividends and Distributions
-------------------------------- -----------------------------
-------------------------------- -----------------------------
Total
NAV Net Net RealizTotal from From Net From NetDividends NAV
BeginningInvestment UnrealizedInvestment Investment Realized and End
of Period Income Gains/(LosActivities Income Gains DistributiofsPeriod
Government Assets Fund "T" Shares
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(unaudited)
Six Months Ended September 30, 2000 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 2000 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended March 31, 1998 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended March 31, 1997 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended March 31, 1996 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Liquid Assets Fund "S" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 2000 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
Year Ended March 31, 1999 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
Nine Months Ended March 31, 1998 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended June 30, 1997 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended June 30, 1996 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended June 30, 1995 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Liquid Assets Fund "S2" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 2000 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
Year Ended March 31, 1999 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
Nine Months Ended March 31, 1998 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
February 27, 1997 to June 30, 1997* $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Liquid Assets Fund "T" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 2000 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Nine Months Ended March 31, 1998 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
January 2, 1997 to June 30, 1997* $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Liquid Assets Fund "I" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 2000 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05) $1.00
Nine Months Ended March 31, 1998 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
October 29, 1996 to June 30, 1997* $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04) $1.00
Municipal Assets Fund "S" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Year Ended March 31, 2000 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Year Ended March 31, 1999 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Nine Months Ended March 31, 1998 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Year Ended June 30, 1997 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended June 30, 1996 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended June 30, 1995 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Municipal Assets Fund "T" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Year Ended March 31, 2000 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 1999 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Nine Months Ended March 31, 1998 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
January 2, 1997 to June 30, 1997* $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Municipal Assets Fund "I" Shares
Six Months Ended September 30, 2000 (una$1.00d) 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
Year Ended March 31, 2000 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Year Ended March 31, 1999 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03) $1.00
Nine Months Ended March 31, 1998 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02) $1.00
March 27, 1997 to June 30, 1997* $1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01) $1.00
Limited Term Bond Fund
Six Months Ended September 30, 2000 (una$9.63d) 0.27 0.11 0.38 (0.27) 0.00 (0.27) $9.74
Year Ended March 31, 2000 $10.00 0.50 (0.37) 0.13 (0.50) 0.00 (0.50) $9.63
Year Ended March 31, 1999 $9.99 0.49 0.00 0.49 (0.48) 0.00 (0.48) $10.00
Year Ended March 31, 1998 $9.69 0.46 0.35 0.81 (0.51)(c) 0.00 (0.51) $9.99
Year Ended March 31, 1997 $9.89 0.50 (0.20) 0.30 (0.50) 0.00 (0.50) $9.69
June 15, 1995 to March 31, 1996* $10.00 0.44 (0.11) 0.33 (0.43) (0.01) (0.44) $9.89
Bond Fund
Six Months Ended September 30, 2000 (una$9.53d) 0.28 0.13 0.41 (0.28) 0.00 (0.28) $9.66
Year Ended March 31, 2000 $9.88 0.57 (0.35) 0.22 (0.57) 0.00 (0.57) $9.53
Year Ended March 31, 1999 $9.86 0.53 0.04 0.57 (0.53) (0.02) (0.55) $9.88
Eleven Months Ended March 31, 1998 $9.82 0.66 0.33 0.99 (0.66) (0.29) (0.95) $9.86
Year Ended April 30, 1997 $9.78 0.62 0.05 0.67 (0.62) 0.00 (0.62) $9.83
July 7, 1995 to April 30, 1996* $10.00 0.49 (0.28) 0.21 (0.43) 0.00 (0.43) $9.78
Income Fund
Six Months Ended September 30, 2000 (una$9.61d) 0.30 0.09 0.39 (0.30) 0.00 (0.30) $9.70
Year Ended March 31, 2000 $9.98 0.57 (0.37) 0.20 (0.57) 0.00 (0.57) $9.61
Year Ended March 31, 1999 $10.04 0.55 (0.04) 0.51 (0.57)(d) 0.00 (0.57) $9.98
Year Ended March 31, 1998 $9.70 0.50 0.38 0.88 (0.54)(c) 0.00 (0.54) $10.04
Year Ended March 31, 1997 $9.93 0.54 (0.24) 0.30 (0.53) 0.00 (0.53) $9.70
Year Ended March 31, 1996 $9.71 0.61 0.23 0.84 (0.62) 0.00 (0.62) $9.93
Municipal Bond Fund
Six Months Ended September 30, 2000 (un$10.24d) 0.22 0.10 0.32 (0.22) 0.00 (0.22) $10.34
Year Ended March 31, 2000 $10.67 0.41 (0.40) 0.01 (0.41) (0.03) (0.44) $10.24
Year Ended March 31, 1999 $10.60 0.40 0.08 0.48 (0.40) (0.01) (0.41) $10.67
Year Ended March 31, 1998 $10.22 0.40 0.40 0.80 (0.40) (0.02) (0.42) $10.60
Year Ended March 31, 1997 $10.27 0.38 (0.05) 0.33 (0.38) 0.00 (0.38) $10.22
Year Ended March 31, 1996 $9.97 0.43 0.30 0.73 (0.43) 0.00 (0.43) $10.27
Balanced Fund
Six Months Ended September 30, 2000 (un$16.58d) 0.18 (0.57) (0.39) (0.18) 0.00 (0.18) $16.01
Year Ended March 31, 2000 $16.01 0.28 2.08 2.36 (0.28) (1.51) (1.79) $16.58
Year Ended March 31, 1999 $15.05 0.24 1.60 1.84 (0.24) (0.64) (0.88) $16.01
Year Ended March 31, 1998 $11.72 0.21 3.67 3.88 (0.21) (0.34) (0.55) $15.05
Year Ended March 31, 1997 $11.08 0.18 1.05 1.23 (0.18) (0.41) (0.59) $11.72
June 1, 1995 to March 31, 1996* $10.00 0.24 1.08 1.32 (0.24) 0.00 (0.24) $11.08
Equity Fund S Shares
Six Months Ended September 30, 2000 (un$23.28d) (0.05) 0.17 0.12 0.00 0.00 0.00 $23.40
Year Ended March 31, 2000 $22.90 (0.06) 4.10 4.04 0.00 (3.66) (3.66) $23.28
Year Ended March 31, 1999 $21.04 (0.06) 3.21 3.15 (0.01) (1.28) (1.29) $22.90
Year Ended March 31, 1998 $16.58 0.00 7.19 7.19 (0.01) (2.71) (2.72) $21.05
Year Ended March 31, 1997 $14.48 0.05 2.60 2.65 (0.05) (0.50) (0.55) $16.58
Year Ended March 31, 1996 $11.44 0.13 3.27 3.40 (0.13) (0.23) (0.36) $14.48
Equity Fund T Shares
Six Months Ended September 30, 2000 (un$23.38d) (0.03) 0.18 0.15 0.00 0.00 0.00 $23.53
Year Ended March 31, 2000 $22.94 (0.01) 4.11 4.10 0.00 (3.66) (3.66) $23.38
Year Ended March 31, 1999 $21.05 (0.01) 3.19 3.18 (0.01) (1.28) (1.29) $22.94
February 14, 1998 to March 31, 1998* $19.77 0.00 1.28 1.28 0.00 0.00 0.00 $21.05
Aggressive Growth
Six Months Ended September 30, 2000 (un$20.49d) (0.08) 0.15 0.07 0.00 0.00 0.00 $20.56
Year Ended March 31, 2000 $17.63 (0.12) 5.57 5.45 0.00 (2.59) (2.59) $20.49
Year Ended March 31, 1999 $16.99 (0.11) 1.70 1.59 0.00 (0.95) (0.95) $17.63
Year Ended March 31, 1998 $11.90 (0.09) 5.61 5.52 0.00 (0.43) (0.43) $16.99
Year Ended March 31, 1997 $10.88 (0.06) 1.08 1.02 0.00 0.00 0.00 $11.90
Sept. 29, 1995 to March 31, 1996* $10.00 0.00 0.90 0.90 0.00 (0.02) (0.02) $10.88
-----------------------------
----------------------------------------------
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios
would have been as indicated.
(a) Not Annualized.
(b) Annualized.
(c) Includes $.04 per share and $.02 per share of distributions in excess of net investment income for the Limited Term Bond Fund
and Income Fund respectively, for year ended March 31, 1998.
(d) Includes $.01 per share of distribution in excess of net investment income.
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Ratio of Ratio of Net Ratio of Ratio of Net
Net AssetsExpenses to Investment Expenses to Investment
Total End of PerAverage Income to Average Income to Portfolio
Return (000 omittNet Assets Average Net AssetNet Assets*Average Net AssetTurnover
<S> <C> <C> <C> <C> <C> <C>
2.84% (a)$184,028 0.67% (b) 5.69% (b) 0.72% (b) 5.64% (b)
4.75% $170,811 0.68% 4.65% 0.73% 4.60%
4.61% $150,006 0.73% 4.49% 0.76% 4.46%
4.72% $155,130 0.73% 4.79% 0.98% 4.54%
4.62% $158,698 0.76% 4.53% 1.01% 4.28%
5.24% $153,836 0.54% 5.08% 0.72% 4.90%
2.58% (a) $73,232 1.36% (b) 5.16% (b) ----- -----
4.18% $91,703 1.36% 4.11% ----- -----
4.18% $77,343 1.34% 4.08% ----- -----
3.43% (a) $69,514 1.20% (b) 4.57% (b) ----- -----
4.46% $60,663 1.20% 4.46% ----- -----
4.68% $179,633 1.20% 4.68% ----- -----
4.66% $167,085 1.20% 4.66% ----- -----
2.70% (a) $9,129 1.11% (b) 5.41% (b) ----- -----
4.44% $8,639 1.11% 4.36% ----- -----
4.44% $8,252 1.09% 4.32% ----- -----
3.68% (a) $5,453 0.87% (b) 4.91% (b) ----- -----
1.66% (a) $1,773 0.85% (b) 4.79% (b) 0.95% 4.69%
2.84% (a) $27,740 0.84% (b) 5.68% (b) ----- -----
4.70% $31,619 0.86% 4.59% ----- -----
4.70% $33,673 0.84% 4.54% ----- -----
3.81% (a) $16,147 0.70% (b) 5.07% (b) ----- -----
2.51% (a) $17,859 0.70% (b) 4.96% (b) ----- -----
2.90% (a) $30,642 0.71% (b) 5.81% (b) ----- -----
4.86% $38,318 0.71% 4.82% ----- -----
4.86% $16,751 0.69% 4.67% ----- -----
3.98% (a) $13,729 0.47% (b) 5.31% (b) ----- -----
3.51% (a) $2,356 0.45% (b) 5.19% (b) ----- -----
1.58% (a) $3,023 1.12% (b) 3.17% (b) ----- -----
2.43% $7,370 1.14% 2.41% 1.15% 2.40%
2.47% $7,894 1.12% 2.41% 1.19% 2.34%
2.13% (a) $7,102 0.94% (b) 2.84% (b) ----- -----
2.90% $4,664 0.93% 2.90% 1.15% 2.68%
2.64% $10,146 1.48% 2.64% ----- -----
2.53% $16,130 1.38% 2.53% ----- -----
1.70% (a) $5,820 0.89% (b) 3.40% (b) ----- -----
2.68% $11,326 0.89% 2.63% 0.90% 2.62%
2.73% $14,949 0.87% 2.66% 0.94% 2.59%
2.31% (a) $12,005 0.69% (b) 3.09% (b) ----- -----
1.61% (a) $25,036 0.66% (b) 3.17% (b) 0.90% 2.93%
1.78% (a) $27,044 0.72% (b) 3.57% (b) ----- -----
2.84% $26,124 0.74% 2.79% 0.75% 2.78%
2.88% $22,405 0.72% 2.81% 0.79% 2.74%
2.49% (a) $20,010 0.46% (b) 3.32% (b) ----- -----
1.20% (a) $7 0.41% (b) 3.42% (b) 0.65% 3.18%
3.95% (a) $50,743 0.93% (b) 5.52% (b) ----- ----- 16.57%
1.38% $52,507 0.92% 5.11% ----- ----- 41.58%
5.01% $56,005 1.05% 4.89% ----- ----- 31.08%
8.51% $37,777 1.35% 4.60% 1.60% 4.35% 80.26%
3.13% $38,835 1.40% 5.18% 1.65% 4.93% 70.63%
3.40% (a) $41,178 1.18% (b) 5.53% (b) 1.18% (b) 5.53% (b69.30%
4.30% (a) $30,852 0.99% (b) 6.24% (b) ----- ----- 5.29%
2.41% $27,339 1.01% 6.01% ----- ----- 31.83%
5.95% $21,984 1.03% 5.46% ----- ----- 37.28%
10.30% (a) $7,213 0.88% (b) 7.66% (b) ----- ----- 225.79%
6.97% $3,201 0.83% 6.16% ----- ----- 42.22%
2.10% (a) $3,642 0.80% (b) 6.24% (b) ----- ----- 60.43%
4.06% (a)$112,439 0.97% (b) 6.21% (b) ----- ----- 11.28%
2.13% $109,486 0.99% 5.91% ----- ----- 28.35%
5.13% $100,341 1.01% 5.51% ----- ----- 60.60%
9.31% $104,604 1.15% 5.04% 1.40% 4.79% 52.03%
3.14% $92,031 1.20% 5.52% 1.45% 5.27% 59.70%
8.74% $84,752 0.97% 5.77% 0.97% 5.77% 113.25%
3.13% (a) $46,763 0.91% (b) 4.18% (b) ----- ----- 11.13%
0.10% $48,616 0.92% 3.91% ----- ----- 26.51%
4.64% $49,950 0.94% 3.76% 1.04% 3.66% 13.87%
7.89% $48,282 1.21% 3.76% 1.46% 3.51% 36.60%
3.22% $45,164 1.28% 3.68% 1.53% 3.43% 21.00%
7.43% $42,436 0.75% 4.21% 1.02% 3.94% 14.21%
(2.35%)(a) $87,182 1.19% (b) 2.12% (b) ----- ----- 19.82%
15.56% $96,688 1.20% 1.77% ----- ----- 64.22%
12.66% $85,424 1.28% 1.61% ----- ----- 48.38%
33.46% $63,403 1.38% 1.58% 1.63% 1.33% 101.32%
11.05% $32,012 1.55% 1.58% 1.80% 1.33% 38.35%
13.29% (a) $13,516 1.32% (b) 2.66% (b) 1.32% (b) 2.66% (b61.72%
0.52% (a)$306,106 1.39% (b) (0.53%)(b) ----- ----- 35.58%
18.59% $325,035 1.36% (0.31%) ----- ----- 89.42%
15.72% $253,593 1.40% (0.34%) ----- ----- 59.22%
45.54% $196,772 1.31% 0.08% 1.56% 0.33% 72.80%
18.35% $309,669 1.33% 0.32% 1.58% 0.07% 37.08%
29.96% $210,950 1.09% 0.96% 1.09% 0.96% 33.23%
0.64% (a)$249,946 1.14% (b) (0.27%)(b) ----- ----- 35.58%
18.83% $259,796 1.11% (0.06%) ----- ----- 89.42%
15.88% $280,418 1.15% (0.08%) ----- ----- 59.22%
6.40% (a)$275,245 1.19% (b) 0.63% (b) 1.44% (b) 0.38% (b72.80%
0.34% (a)$153,211 1.36% (b) (0.76%)(b) ----- ----- 72.20%
33.51% $159,299 1.35% (0.67%) ----- ----- 156.56%
9.85% $121,552 1.42% (0.69%) ----- ----- 61.90%
46.82% $101,377 1.56% (0.74%) 1.81% (0.99%) 86.36%
9.39% $49,413 1.63% (0.64%) 1.88% (0.89%) 45.14%
9.10% (a) $23,319 1.57% (b) 0.08% (b) 1.57% (b) 0.08% (b)4.31%
</TABLE>
<PAGE>
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<PAGE>
Table of contents
Performance Reports and
Schedules of portfolio Investments
Page 3
Statements of Assets and Liabilities
Page 40
Statement of Operations
Page 44
Statements of Changes in Net Assets
Page 46
Notes to financial Statements
page 55
Financial Highlights
Page 60
<PAGE>
SEMI-ANNUAL
REPORT
TO
SHAREHOLDERS
SEPTEMBER 30, 2000
<PAGE>
Service Providers
Investment AdvisEr and Administrator
Investors Management Group
2203 Grand Avenue
Des Moines, Iowa 50312-5338
Distributor
BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
Legal Counsel
Cline, Williams, Wright, Johnson, & Oldfather
1900 First Bank Building
Lincoln, Nebraska 68508
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
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