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Previous: VINTAGE MUTUAL FUNDS INC, NSAR-B, 2000-05-26 |
Next: BANK WEST FINANCIAL CORP, 4, 2000-05-26 |
MESSAGE FROM THE PRESIDENT VINTAGE MUTUAL FUNDS, INC.
Dear Shareholders:
It was a year of recordbreaking performances in the operation of the Vintage
Mutual Funds and volatility in the general market place. As the Federal Reserve
Board initiated a series of rate increases designed to slow an expanding
economy, both fixed income and equity markets presented a challenging management
environment to asset managers. Throughout these volatile market conditions, the
Vintage Funds' mutual fund managers effectively managed your invested funds.
THE YEAR IN REVIEW
This past fiscal year marked the second full year of combined operation for the
Vintage Mutual Funds. Investors Management Group provides all advisory,
accounting and administrative services to each of the ten Vintage Funds. The
ability to provide excellent advisory and administrative support to a varied
family of mutual funds is somewhat unusual in today's marketplace. By
integrating all aspects of fund operation, we strive to provide a seamless flow
of performance and information to every shareholder.
WHAT DID YOU THINK?
During the past year, we implemented an extensive Customer Satisfaction Survey,
asking over 7,500 shareholders to evaluate their Fund relationship in a number
of critical areas. Your responses will be invaluable as we explore ways to serve
Vintage shareholders even better in the years to come.
Not surprisingly, the most important aspect of Vintage services was excellent
investment performance. As you read through the remainder of this Annual Report,
I hope you agree that investment performance is also our number one objective.
While historical accomplishments are significant, we look eagerly to the future
and the ability to provide the continued excellent investment performance that
Vintage shareholders have come to expect.
As of March 31, 2000, the Vintage family of mutual funds had a total of
$1,464,676,170 invested in the ten Vintage funds. We appreciate the trust each
of you as shareholders place in our management efforts. We thank you for your
continued confidence in us, and we look forward to providing excellent
investment management and service in the future. As always, if you would like a
prospectus on any or all Vintage Funds, have questions or require assistance,
please call us at 1-800-438-6375 or visit us at www.vintagefunds.com.
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:
It has been yet another year of records and challenges for investors in both the
bond market and the stock market. Both domestic and international events
continue to trigger turbulence in the markets.
Labor remains tight in the U.S. Key labor indicators such as initial
unemployment claims, payroll employment and unemployment have all reached levels
not seen since the 1960's.
Labor is tight because of the continued growth of the U.S. economy, which has
been advancing at a 6% to 7% annual pace. Most observers feel this pace is too
rapid and that the strong demand for a short supply of labor will ultimately
force wages and then prices above acceptable levels. This viewpoint has been
widely publicized and is shared by Chairman Alan Greenspan of the Federal
Reserve. It is the reason for the Chairman engineering successive short-term
interest rate hikes, beginning in July of 1999, in an effort to slow growth.
Additional rate increases are likely.
Signs of Fed success have been few. Until slowing actually occurs, or is at
least perceived to be just ahead, the Fed will continue to tighten. That means
the markets are facing a "Fed-led" head wind. The effects of Fed tightening can
lag by as much as 12 months. For now these effects can be seen in the rate of
growth of money supply, which has been dropping. With its own lag, most believe
economic growth itself ultimately will ease. Certainly money supply growth,
retail sales and even the stock market are highly correlated. Any predictions of
when overall easing will actually occur are tenuous at best.
With such tight labor, why isn't inflation a more "clear and present danger"?
Productivity! Productivity has been spectacular. The last reading showed that
overall productivity had increased at an eye-popping 7%. And the rate of
productive advances has actually been rising. (Usually at this phase in an
expansion, productivity actually ebbs.) Vintage shareholders know all too well
the reasons for this happy condition. They include the tech revolution, a more
experienced work force and aging baby boom generation reaching its peak years,
new entrants to the labor force-including women, minorities and immigrants-and a
much restructured and leaner corporate America, to name a few.
So what's ahead?
We expect continued volatility in the bond and stock markets until the Federal
Reserve is finished raising interest rates. We believe the Fed will continue to
tighten monetary policy until there are tangible signs of slowing economic
growth. The Fed has raised short-term interest rates five times since last
summer without achieving any noticeable effect on the economy. Since the Fed
began tightening, the economy has strengthened, inflation has moved higher,
long-term interest rates have moved lower, and "New Economy" stock prices have
skyrocketed. These are not the results the Fed wants to see.
The markets currently appear to have some level of confidence that the Fed is
making progress. The recent rotation back to "Old Economy" stocks from the
tech-driven "New Economy" universe is evidence that investors may think the
majority of rate increases is now behind us. However, there may be an underlying
risk that Fed tightening may go beyond what the financial markets are currently
discounting. As always, we will remain vigilant.
Sincerely,
Jay H. Evans
Chief Investment Officer
Investors Management Group
<PAGE>
THE VINTAGE MONEY MARKET FUNDS
The economy was strong, unemployment low and consumer confidence high throughout
much of the year ended March 31, 2000. Inflationary pressures began to appear
during the period, led by commodity price and wage increases. International
events are much problematic at present as many of the world's significant
economies that were experiencing difficulties in past periods have improved.
Looking forward, we anticipate a continued strong domestic economy and the high
likelihood of increasing short-term interest rates as the Federal Reserve adopts
a more proactive posture designed to cool the domestic economy. The series of
quarter-point rate increases experienced during the period are likely to be
followed by more aggressive rate hikes unless data evidencing a slowing economy
begins to emerge.
THE GOVERNMENT ASSETS FUND
In light of the Federal Reserve's current posture of tightening interest rates,
we anticipate that the Government Assets Fund's average maturity will be
maintained somewhat shorter than the Fund's performance benchmark. We will
continue to selectively purchase appropriate Government securities when buying
opportunities occur.
THE LIQUID ASSETS FUND
Expectation of higher short-term rates continues to keep money market fund
yields rising while the Fed has been vigilant in slowing the economy. We
anticipate that short-term rates will continue their climb. We have
strategically maintained a higher percentage of the Liquid Assets Fund in seven
day or less investments to take advantage of the higher rates when they do
occur. We continue to focus on high quality short-term corporate issues as a
means of adding additional yield.
THE MUNICIPAL ASSETS FUND
Expectation of higher short-term rates continues to keep money market fund
yields rising. The Fund is positioned to take advantage of higher-yielding
securities that will be in the marketplace as the Fed increases rates. We
continue to search for buying opportunities in municipal notes as a means of
adding more yield to the Fund.
Although the Vintage Money Market Funds seek to maintain a stable net asset
value of $1.00, there is no assurance that they will be able to do so. The
Vintage Money Market Funds are neither insured nor guaranteed by the U.S.
Government.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
GOVERNMENT ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
U.S. Government Agency (77.02%):
Federal Agricultural Mortgage Corporation:
10,000,000 6.00%**, 04/13/00 $9,980,433
Federal Farm Credit Bank:
10,000,000 6.13%**, 05/12/00 9,931,895
Federal Home Loan Bank:
10,000,000 5.89%**, 04/19/00 9,971,300
4,587,000 5.93%**, 04/28/00 4,567,116
5,000,000 5.99%**, 05/19/00 4,961,267
5,456,000 6.06%**, 05/23/00 5,409,503
10,000,000 6.08%*, 10/27/00 10,000,000
Federal Home Loan Mortgage Corporation:
10,000,000 5.87%**, 04/04/00 9,995,233
10,000,000 5.88%**, 04/11/00 9,984,083
6,927,000 5.90%**, 04/11/00 6,915,936
10,000,000 5.93%**, 04/25/00 9,961,467
10,000,000 5.97%**, 05/02/00 9,949,883
10,000,000 6.03%**, 05/09/00 9,937,933
Student Loan Marketing Association:
10,000,000 6.36%*, 06/15/00 10,000,000
10,000,000 6.04%*, 09/21/00 10,000,000
-----------------
Total U.S. Government Agency 131,566,049
-----------------
Repurchase Agreements (23.14%):
Morgan Stanley Dean Witter:
39,516,640 6.05%, 04/03/00
(Purchased on 3/31/00, proceeds at maturity $39,536,563; Collateralized by Govt. Agencies,
8/31/01-2/15/25, Market Value $40,500,584) 39,516,640
-----------------
Total Investments in Securities (100.16%) (Cost--$171,082,689)(a) $171,082,689
Other Assets and Liabilities (-0.16%) (271,871)
-----------------
Net Assets (100.00%) $170,810,818
=================
- ----------------
(a)Aggregate cost for federal income tax purposes is identical.
* Denotes floating rate investment with interest rate as of March 31, 2000.
** Effective yield at date of purchase.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
LIQUID ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Loan Certificates--FmHA Guaranteed Loan Certificates (17.47%):
$29,741,886 5.50% to 6.75%*, 5/20/00 to 12/30/33 $29,741,886
-------------------
Trust Certificates- -U.S. Govt. Guaranteed Student Loans (2.94%):
5,000,000 6.64%***, 12/19/00 5,000,000
-------------------
Commercial Paper (24.55%):
Co-op Tractor:
2,292,000 6.11%**, 04/04/00 2,290,835
3,530,000 6.08%**, 04/07/00 3,526,429
Eagle Funding:
2,500,000 5.90%**, 04/03/00 2,499,185
1,599,000 5.95%**, 04/06/00 1,597,685
3,029,000 6.09%**, 04/06/00 3,026,442
Edison Asset Securitization:
2,104,000 6.08%**, 04/04/00 2,102,936
2,653,000 5.95%**, 04/05/00 2,651,252
Emerson Electric Company:
3,000,000 6.06%**, 04/07/00 2,996,975
Ford Motor Credit Company:
2,000,000 6.10%**, 04/06/00 1,998,308
Grand Funding:
3,000,000 6.07%**, 04/11/00 2,994,958
Three Rivers Funding:
3,000,000 5.89%**, 04/03/00 2,999,023
Thunder Bay Funding:
3,000,000 6.02%**, 04/03/00 2,999,000
Triple A1 Funding:
2,399,000 5.94%**, 04/07/00 2,396,637
Vulcan Materials Company:
1,229,000 5.92%**, 04/04/00 1,228,396
Wood Street Funding:
2,503,000 6.37%**, 04/03/00 2,502,114
4,000,000 6.02%**, 04/05/00 3,997,333
-------------------
Total Commercial Paper 41,807,508
-------------------
Corporates (30.99%):
Albertson's Inc:
500,000 6.38%, 06/01/00 500,759
2,500,000 6.38%, 06/01/00 2,501,286
345,000 6.38%, 06/01/00 344,954
Associates Corporation:
400,000 6.69%, 06/15/00 400,706
1,200,000 6.38%, 08/15/00 1,200,610
AT&T Capital Corporation:
2,500,000 6.75%, 12/01/00 2,502,669
Banc One Corp:
4,550,000 6.21%, 10/25/00 4,547,509
Bear Stearns:
4,000,000 6.56%, 06/20/00 4,006,205
Caterpillar Finance Services:
1,000,000 5.12%, 11/01/00 991,621
Chrysler Financial:
5,000,000 4.95%, 10/10/00 4,967,328
250,000 6.88%, 08/15/00 250,000
CitiGroup Inc:
250,000 6.13%, 06/15/00 250,238
Ford Motor Credit:
1,000,000 6.38%, 04/15/00 1,000,491
1,000,000 6.65%, 08/01/00 1,002,865
General Electric Capital Corporation:
900,000 5.89%, 05/15/00 899,849
General Motors Acceptance Corporation:
500,000 7.50%, 04/11/00 500,262
1,000,000 7.50%, 06/30/00 1,004,233
General Motors:
2,000,000 9.63%, 12/01/00 2,042,110
1,000,000 9.63%, 12/01/00 1,019,697
Household Finance:
4,000,000 6.00%, 05/08/00 4,000,774
Hydro-Quebec:
1,000,000 9.20%, 12/15/00 1,017,439
International Lease Finance:
1,000,000 7.00%, 05/15/00 1,001,360
3,330,000 6.76%, 01/12/01 3,332,461
John Deere Capital Corporation:
1,045,000 6.15%, 08/01/00 1,044,618
Newell Company:
3,125,000 6.18%, 07/11/00 3,126,167
Rockwell International:
2,500,000 8.38%, 02/15/01 2,533,807
Salomon Inc:
500,000 6.05%, 06/15/00 500,358
SmithKline Beecham:
1,000,000 6.75%, 09/05/00 1,001,822
Weyerhaeuser Company:
2,000,000 8.90%, 04/19/00 2,002,838
Wheeling Pittsburgh Corporation:
2,251,000 9.38%, 11/15/00 2,345,790
898,000 9.38%, 11/15/00 934,468
-------------------
Total Corporates 52,775,294
-------------------
Repurchase Agreements (24.31%):
Bear Stearns:
41,392,411 6.10%, 04/03/00, (Purchased on 03/31/00, proceeds at maturity $41,413,452; Collateralized by
$82,688,000 Government Agencies, 8/25/21-12/20/29, market value $43,383,319) 41,392,411
-------------------
Total Investments in Securities (100.26%) (Cost--$170,717,099)(a) $170,717,099
Other Assets and Liabilities (-0.26%) (438,401)
-------------------
Net Assets (100.00%) $170,278,698
===================
- ----------------
(a)Aggregate cost for federal income tax purposes is identical.
* 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL ASSETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Industrial Development Bonds (2.48%)
Iowa (2.48%)
$158,497 Iowa HFA (Starr-Terry Project), 5.31%**, 05/15/05 $158,497
766,519 Sioux City, IA (Handy Partnership), 4.81%**, 09/15/04 766,519
187,334 Vinton, IA (Twin City Concrete), 5.04%**, 06/15/02 187,334
-----------------
Total Industrial Development Bonds 1,112,350
-----------------
Variable Rate Demand Obligations (61.53%)
Arizona (2.23%)
1,000,000 Apache Co., AZ IDA 7-Day, 3.90%**, 12/15/18 1,000,000
-----------------
Delaware (4.24%)
1,900,000 Delaware State Economic Development 7-Day, 3.95%**, 10/01/28 1,900,000
-----------------
Florida (4.46%)
2,000,000 St. Lucie Co., FL Pollution Control Revenue DTN, 3.90%*, 01/01/26 2,000,000
-----------------
Illinois (6.25%)
1,100,000 Chicago, IL G.O. 7-Day, 3.85%**, 01/01/12 1,100,000
300,000 Illinois State Health Facility Authority 7-Day, 4.00%**, 04/01/32 300,000
1,000,000 Illinois State Health Facility Authority 7-Day, 3.88%**, 07/01/28 1,000,000
400,000 McCook, IL St. Andrew Revenue 7-Day, 4.05%**, 12/01/21 400,000
-----------------
2,800,000
-----------------
Iowa (3.12%)
800,000 Iowa Finance Authority Hospital Facilities Revenue 7-Day, 3.90%**, 07/01/13 800,000
600,000 Iowa Finance Authority Revenue 7-Day, 3.85%**, 08/15/24 600,000
-----------------
1,400,000
-----------------
Kentucky (2.90%)
500,000 Ashland, KY Pollution Control Revenue 7-Day, 3.80%**, 04/01/09 500,000
800,000 Kentucky Development Finance Authority 7-Day, 3.90%**, 12/01/15 800,000
-----------------
1,300,000
-----------------
Michigan (3.35%)
1,000,000 Michigan St HFA (Mt. Clemens) 7-Day, 3.80%**, 08/15/15 1,000,000
500,000 Michigan State HFA (St. Mary's) 7-Day, 3.90%**, 07/01/17 500,000
-----------------
1,500,000
-----------------
Minnesota (1.51%)
675,000 Duluth, MN Tax Increment Revenue 7-Day, 3.90%**, 09/01/10 675,000
-----------------
Missouri (3.12%)
1,400,000 Missouri Higher Education Loan Facility 7-Day, 3.95%**, 06/01/17 1,400,000
-----------------
New York (2.45%)
600,000 New York State Dormitory Authority 7-day, 3.90%**, 02/15/07 600,000
500,000 New York, NY Sub Series A4 DTN, 3.85%*, 08/01/23 500,000
-----------------
1,100,000
-----------------
North Carolina (2.90%)
1,300,000 North Carolina Medical Care Hospital 7-Day, 3.95%**, 10/01/23 1,300,000
-----------------
North Dakota (2.68%)
1,200,000 Grand Forks, ND Hospital Facilities DTN, 4.10%*, 12/01/16 1,200,000
-----------------
Oregon (2.90%)
1,300,000 Portland, OR Pollution Control Revenue DTN, 4.10%*, 12/01/09 1,300,000
-----------------
Tennessee (0.89%)
400,000 Metropolitan Nashville Airport, TN DTN, 4.10%*, 10/01/12 400,000
-----------------
Texas (12.05%)
1,400,000 Grapevine, TX Industrial Development Series A1 DTN, 4.10%*, 12/01/24 1,400,000
900,000 Grapevine, TX Industrial Development Series B1 DTN, 4.10%*, 12/01/24 900,000
1,200,000 Harris Co., TX Series 88A 7-Day, 3.90%**, 06/01/05 1,200,000
1,000,000 Hunt Co., TX Industrial Development 7-Day, 3.85%**, 10/01/02 1,000,000
500,000 Lone Star, TX Airport Series A3 DTN, 4.10%*, 12/01/14 500,000
400,000 Lone Star, TX Airport Series B3 DTN, 4.10%*, 12/01/14 400,000
-----------------
5,400,000
-----------------
Utah (2.01%)
900,000 Salt Lake City, UT Revenue 7-Day, 3.90%**, 01/01/20 900,000
-----------------
Washington (4.02%)
500,000 Port of Seattle, WA, IDC Airport Revenue 7-Day, 3.90%**, 12/01/09 500,000
500,000 Port of Vancouver, WA, Series 84A 7-Day, 3.90%**, 12/01/09 500,000
800,000 Port of Vancouver, WA, Series 84B 7-Day, 3.90%**, 12/01/09 800,000
-----------------
1,800,000
-----------------
Wisconsin (0.45%)
200,000 Wisconsin Health Care Facility A2 7-Day, 3.85%**, 01/01/16 200,000
-----------------
Total Variable Rate Demand Obligations 27,575,000
-----------------
Municipal Bonds (36.05%)
Alabama (0.23%)
100,000 Alabama State, 7.00%, 08/01/03 102,794
-----------------
Arkansas (0.20%)
660,000 Arkansas Housing Development Agency, 5.01%**, 07/01/00 91,187
-----------------
Colorado (0.80%)
100,000 Fairlake, CO Metropolitan District, 3.50%, 12/01/00 99,483
250,000 Larimer Co., CO School District #R1, 10.00%, 12/01/00 258,864
-----------------
358,347
-----------------
Delaware (0.57%)
250,000 Wilmington, DE, 6.60%, 05/15/00 255,857
-----------------
District of Columbia (0.75%)
25,000 District of Columbia Series E, 4.75%, 06/01/00 25,036
310,000 District of Columbia Series E, 4.75%, 06/01/00 310,451
-----------------
335,487
-----------------
Florida (0.49%)
220,000 Fort Lauderdale, FL Water and Sewer, 6.10%, 09/01/00 221,613
-----------------
Hawaii (0.46%)
200,000 Hawaii State Series BS, 7.125%, 09/01/00 204,276
-----------------
Illinois (9.28%)
1,000,000 Berwyn, IL Capital Appreciation Series A, 4.43%**, 12/01/00 752,899
300,000 Chicago, IL Metropolitan Water Reclamation District, 4.80%, 12/01/00 300,855
100,000 Chicago, IL School Finance Authority, 4.50%, 06/01/00 100,096
230,000 Cook Co., IL High School District #205, 4.90%, 12/01/00 230,730
305,000 Forest Park, IL Park District, 6.20%, 12/01/00 309,140
185,000 Grundy Co., IL Public Building Commission, 4.65%, 12/01/00 185,000
100,000 Illinois State Sales Tax Revenue, 4.50%, 06/15/00 100,119
500,000 Lake Co., IL Community College District #532, 9.00%, 11/01/00 513,600
1,000,000 Lake Co., IL Township High School District #113, 3.45%, 12/01/00 994,138
100,000 Quincy, IL, 4.55%, 09/01/00 100,098
400,000 Sangamon Co., IL Certificates of Partnership, 6.40%, 12/01/00 405,277
165,000 South Barrington, IL Refunding, 4.75%, 05/01/00 165,138
-----------------
4,157,090
-----------------
Indiana (1.55%)
280,000 Haubstadt-Owensville Independent School District, IN, 7.00%, 01/15/01 290,951
150,000 Indiana State University Student Fee Revenue, 5.70%, 10/01/00 151,243
250,000 Indianapolis, IN Gas Utility Revenue, 4.70%, 06/01/00 250,282
-----------------
692,476
-----------------
Iowa (2.38%)
295,000 Des Moines, IA Series A, 4.00%, 06/01/00 295,118
330,000 Lewis, IA Central Community School District, 4.50%, 05/01/00 330,263
315,000 Southeast Polk Community School District, IA, 8.375%, 06/01/00 317,177
125,000 Southeast Warren Community School District, IA, 5.00%, 05/01/00 125,140
-----------------
1,067,698
-----------------
Kentucky (1.36%)
100,000 Kentucky Higher Education Student Loan, KY, 4.70%, 12/01/00 100,188
500,000 Kentucky State Turnpike Authority, 7.25%, 05/15/00 509,466
-----------------
609,654
-----------------
Maine (0.22%)
100,000 Maine State General Purpose, 5.10%, 09/01/00 100,344
-----------------
Massachusetts (0.22%)
70,000 Massachusetts State Water Pollution, 4.40%, 08/01/00 69,847
30,000 Massachusetts State Water Pollution, 4.40%, 08/01/00 29,935
-----------------
99,782
-----------------
Michigan (4.40%)
500,000 Algonac, MI Community School District, 4.10%**, 05/01/00 416,958
150,000 Breitung Township, MI School District, 4.40%**, 05/01/00 108,350
175,000 Holland, MI School District, 4.35%**, 05/01/00 108,003
200,000 Michigan Municipal Bond Authority Revenue, 4.50%, 12/01/00 200,225
500,000 Michigan State Tranportation, 5.30%, 05/15/00 500,880
200,000 Muskegon, MI Public Schools, 4.125%, 05/01/00 200,059
185,000 Oakland Co., MI Refunding, 4.50%, 05/01/00 185,096
250,000 West Bloomfield, MI School District, 5.50%, 05/01/00 250,351
-----------------
1,969,922
-----------------
Minnesota (0.84%)
150,000 Minnesota State Housing Finance Agency, Series I, 3.90%, 08/29/00 149,905
225,000 St. Paul, MN Housing and Redevelopment Authority, 4.75%, 05/15/00 225,197
-----------------
375,102
-----------------
Nebraska (0.56%)
250,000 Lincoln, NE Waterworks, 4.60%, 08/15/00 250,537
-----------------
Ohio (0.56%)
100,000 Columbus, OH Waterworks, 5.00%, 05/01/00 100,099
150,000 Ohio State Building Authority, Series A, 5.90%, 06/01/00 150,397
-----------------
250,496
-----------------
South Dakota (0.23%)
105,000 South Dakota State Health & Education Facility Authority, 4.25%, 11/01/00 105,000
-----------------
Tennessee (1.13%)
300,000 Franklin, TN Special School District, 5.80%, 06/01/00 306,840
200,000 Metro Government Nashville and Davidson Cos., TN, 5.00%, 05/15/00 200,246
-----------------
507,086
-----------------
Texas (4.35%)
140,000 McLennan County, TX, 6.75%, 06/01/00 140,566
400,000 San Angelo, TX Certificates Series A, 5.25%, 08/15/00 401,949
300,000 Taylor, TX, 7.00%, 08/01/00 302,690
250,000 Texas A&M University, 5.00%, 05/15/00 250,409
250,000 Texas Municipal Power Agency, 5.50%, 09/01/00 251,464
500,000 Texas State Refunding Water Financial Assistance, 4.25%, 08/01/00 500,476
100,000 University of Texas, 5.20%, 08/15/00 100,277
-----------------
1,947,831
-----------------
Utah (1.40%)
375,000 Logan City, UT, 5.00%, 06/15/00 375,934
250,000 Salt Lake City, UT Refunding, 5.90%, 06/15/00 250,953
-----------------
626,887
-----------------
Washington (2.35%)
250,000 Snohomish Co., WA Series A, 4.50%, 12/01/00 250,229
200,000 Washington State Motor Vehicle Fuel Series R-93C, 4.75%, 09/01/00 200,603
500,000 Washington State Refunding Series R-92C, 5.50%, 09/01/00 502,402
100,000 Washington State Series B, 6.80%, 08/01/00 100,818
-----------------
1,054,052
-----------------
Wisconsin (1.72%)
395,000 Beaver Dam, WI Water System, 4.70%, 08/01/00 396,214
250,000 Dane Co., WI Promissory Note, 4.25%, 06/01/00 250,242
125,000 Menomonee Falls, WI, 4.50%, 08/01/00 125,160
-----------------
771,616
-----------------
Total Municipal Bonds 16,155,134
-----------------
Mutual Funds (0.00%)
2,233 Aim Institutional Tax Free Cash Reserve, 3.67%**** 2,233
-----------------
Total Investments in Securities (100.06%) (Cost--$44,844,717)(a) $44,844,717
Other Assets & Liabilities (-0.06%) (24,655)
-----------------
Net Assets (100.00%) $44,820,062
=================
- ----------------
(a)Aggregate cost for federal income tax purposes is identical.
* 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 March 31, 2000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE FIXED INCOME FUNDS
The U.S. economy continues to charge ahead. Fourth quarter GDP growth was 7.3
percent and first quarter GDP growth will likely exceed 5.0 percent. Consumer
spending is rising at a 6 percent annual rate and business investment spending
near a 17 percent annual rate. Fiscal spending is also boosting the economy.
Government construction spending is growing at a 20 percent annual pace. Nominal
government spending, as a percentage of nominal GDP, is rising for the first
time since the early 1990s.
The effects of Fed tightening remain scant. Financial conditions remain
supportive of strong consumer and business activity. Credit is still easily
available. Bank lending is increasing. Consumer installment debt has surged to a
four-year high. Short-term rates relative to inflation are no higher than a year
ago. Absent an external shock, the Fed will have to raise short-term rates
further to slow down the economy.
The global economy is accelerating as well. Industrial production in Europe and
Asia is increasing at a quicker pace. Even optimism in Japan is improving. The
Nikkei is at a three-year high.
The cyclical upswing both here and abroad is increasing inflationary pressures.
Import prices, even excluding oil, are rising. Small business pricing plans have
risen to near a record high. The National Association of Purchasing Managers'
price index is at its highest level since early 1995. Unions are negotiating for
larger pay packages rather than job security. The sharp increase in industrial
commodity prices suggests that the overall CPI could move above 4 percent which
will further increase wage demands.
The dollar may be beginning to lose its luster. The current account deficit will
be financed. The issue is on what terms. The U.S. is now consuming 77 percent of
surplus global savings. U.S. assets have stopped outperforming foreign assets
this year. This implies that the terms on which foreigners are willing to
continue to finance the U.S. current account deficit are less generous.
We are positioning bond portfolio durations slightly shorter than their
benchmark. We are concerned that cyclical inflationary pressures are building.
The Fed has not yet raised short-term rates enough to squelch these pressures.
In addition, lending standards haven't tightened and long-term rates have risen
less than in past interest rate cycles.
<PAGE>
THE LIMITED TERM BOND FUND
Our goal in managing the Limited Term Bond Fund continues to be to enhance
shareholder returns. The Fed continues to have a tightening bias and the portion
of the yield curve in which the Limited Term maturities are focused may see
additional pressure. Therefore, we remain slightly shorter than our target
duration. As we see yields appear to be approaching a peak, perhaps later this
year, we will extend our duration to match or exceed the target duration. For
the year ended March 31, 2000, the Fund posted a total return after operating
expenses of 1.38%*.
The Fund's average maturity ended the period with an average maturity of 3.2
years. Assets were also reallocated, with the allocation to Government
securities increased and the allocation to Mortgage-backed securities reduced
over the previous period. As a result of these changes, we believe the Fund is
well positioned for the future.
As of March 31, 2000, approximately 46% of the Fund's net assets were invested
in Treasury and agency securities, 16% in mortgage-related securities, 32% in
corporate bonds, and 2% in taxable municipals, and 4% in cash and cash
equivalents. The average credit quality of these holdings was AA1**.
[GRAPH]
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's holdings is subject to change.
The performance of the Vintage Limited Term Fund is measured against the Lehman
Brothers Intermediate Government/Corporate Bond Index and the Merrill Lynch 1-5
yr. U.S. Government/Corp. Index. Both are unmanaged indices generally
representative of the performance of government and corporate bonds and the
Lehman Index having maturities of 1-10 years and the Merrill Lynch having
maturities of 1-5 years. The indices do not reflect the deduction of expenses
associated with a mutual fund, such as investment management fees. The Fund's
performance reflects the deduction of fees for these value-added services.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
LIMITED TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
U.S. Treasury Notes (32.47%)
$1,000,000 5.75%, 08/15/03 $979,600
1,000,000 6.38%, 08/15/02 997,630
1,000,000 5.75%, 04/30/03 980,700
2,000,000 6.25%, 02/15/03 1,988,440
1,500,000 6.50%, 05/15/05 1,510,560
2,000,000 6.50%, 05/31/01 2,000,420
2,500,000 6.63%, 04/30/02 2,505,800
2,000,000 6.25%, 10/31/01 1,992,200
3,000,000 7.25%, 08/15/04 3,097,080
1,000,000 6.25%, 08/31/02 994,650
------------------
Total U.S. Treasury Notes 17,047,080
------------------
U.S. Government Agencies (12.97%)
1,000,000 Federal National Mortgage Assoc., 5.13%, 11/30/00 990,780
1,000,000 Federal Farm Credit Bank, 6.15%, 03/23/05 955,260
1,000,000 Federal Home Loan Bank, 5.50%, 01/21/03 960,320
1,000,000 Federal National Mortgage Assoc., 5.80%, 07/23/01 987,500
1,000,000 Federal National Mortgage Assoc., 6.25%, 12/13/02 981,600
1,000,000 Federal National Mortgage Assoc., 6.60%, 07/16/07 960,650
1,000,000 Federal National Mortgage Assoc., 7.28%, 05/23/07 976,120
------------------
Total U.S. Government Agencies 6,812,230
------------------
Mortgage Related Securities (16.12%)
Collateralized Mortgage Obligations (9.06%)
560,020 Federal National Mortgage Assoc. 1997-72 VA, 7.00%, 10/18/02 558,301
1,231,787 Federal Home Loan Mortgage Corp. Series 1465 Class E, 6.50%, 09/15/06 1,225,591
2,000,000 Federal Home Loan Mortgage Corp. Series 1515 Class E, 6.50%, 03/15/07 1,990,780
1,000,000 Federal Home Loan Mortgage Corp. T-11 Class A3, 6.50%, 03/25/11 980,800
------------------
4,755,472
------------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools (1.29%)
681,835 #E61274, 7.00%, 08/01/09 674,785
------------------
Federal National Mortgage Association Mortgage-Backed Pools (1.17%)
636,492 1993-14, 6.00%, 02/25/08 616,646
------------------
Asset Backed Securities (4.60%)
1,000,000 Fingerhut 98-1A, 6.07%, 02/15/05 989,970
446,416 Nations Credit Grantor Trust 97-1, 6.75%, 08/15/13 439,411
1,000,000 Union Acceptance Corp., 6.82%, 01/09/06 987,650
------------------
2,417,031
------------------
Total Mortgage-Related Securities 8,463,934
------------------
U.S. Taxable Municipal Bonds (1.87%)
1,000,000 State of Texas Veterans Housing Fund II-Series B-1, 6.73%, 06/01/21 983,500
------------------
Corporate Bonds (32.31%)
Banking and Financial Services (11.21%)
1,000,000 Associates, 5.85%, 01/15/01 992,500
1,000,000 Bankers Trust, 5.85%, 05/11/00 1,000,000
1,000,000 Beneficial Corp, 6.27%, 12/06/01 982,500
1,000,000 CIT Group, Inc., 5.50%, 02/15/04 935,000
1,000,000 Ford Motor Credit, 7.25%, 01/15/03 997,500
1,000,000 Salomon Smith Barney, 6.63%, 11/15/03 981,250
------------------
------------------
5,888,750
------------------
Consumer Goods and Services (9.26%)
1,000,000 Dillard's Department Store, 9.50%, 10/15/01 1,013,750
1,000,000 Loyola University, 6.03%, 06/15/00 999,100
1,175,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 608,063
1,255,000 Reebok International Ltd, 6.75%, 05/15/00 1,253,431
1,000,000 Reynolds & Reynolds, 6.12%, 03/02/01 987,500
------------------
4,861,844
------------------
Healthcare (1.49%)
1,000,000 Healthsouth Corp, 3.25%, 04/01/03 781,250
------------------
Industrial Goods and Services (8.42%)
1,000,000 Boeing Company, 6.35%, 06/15/03 968,750
1,000,000 Comdisco, 6.13%, 08/01/01 980,000
1,000,000 Consolidated Natural Gas, 7.25%, 10/01/04 987,500
500,000 Cummmins Engine, 6.75%, 02/15/27 471,875
1,000,000 Xerox Corporation, 8.13%, 04/15/02 1,012,500
------------------
4,420,625
------------------
Railroads (1.93%)
1,000,000 Norfolk Southern Railway Equipment Trust, 7.75%, 08/15/02 1,011,250
------------------
Total Corporate Bonds 16,963,719
------------------
Mutual Funds (3.36%)
1,762,437 Government Assets Fund T Shares, 5.36%** 1,762,437
------------------
Total Investments in Securities (99.10%)
(Cost $53,117,950) (a) $52,032,900
Other Assets & Liabilities (0.90%) 474,308
------------------
Net Assets (100.00%) $52,507,208
==================
- ---------------
(a) Cost for federal income tax purposes of $53,181,461 differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation.................$35,407
Unrealized Depreciation.............($1,183,968)
Net Unrealized Depreciation.........($1,148,561)
** Rate shown is as of March 31, 2000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE BOND FUND
We are positioning the average maturity of the Bond Fund slightly shorter than
the performance benchmark. The cyclical economic upswing both here and abroad is
increasing inflationary pressures. The dramatic inversion of the Treasury yield
curve may lessen as investors become more focused on real rates of return and
the likelihood of maintaining the budget surplus. Opportunities in the corporate
bond market remain attractive. Government agency and mortgage-backed sectors are
underweight because legislative risk may hang over these sectors for some time.
For the year ended March 31, 2000, the Fund posted a total return after
operating expenses of 2.41%*.
As of March 31, 2000, approximately 29% of the Fund's net assets were invested
in mortgage-related securities, 39% in corporate bonds, 4% in taxable
municipals, 23% in Treasury and agency securities, and 5% percent in cash and
cash equivalents. The average maturity of these holdings was 7.70 years with an
average credit quality of AA1**.
[GRAPH]
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's holdings is subject to change.
The performance of the Vintage Bond Fund is compared to the Lehman Brothers
Aggregate Index, which represents the performance of the overall bond market.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
Fund's performance reflects the deduction of fees for these value-added
services. THE
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
U.S. Treasury Bonds (14.55%)
$1,200,000 7.50%, 11/15/16 $1,358,160
1,100,000 8.13%, 08/15/19 1,336,027
500,000 12.00%, 08/15/13 676,115
500,000 8.00%, 11/15/21 608,055
------------------
Total U.S. Treasury Bonds 3,978,357
------------------
U.S. Treasury Notes (3.10%)
750,000 5.63%, 02/28/01 745,095
100,000 8.00%, 05/15/01 101,611
------------------
------------------
Total U.S. Treasury Notes 846,706
------------------
U.S. Government Agencies (5.20%)
500,000 Federal Home Loan Bank, 6.50%, 11/29/05 486,120
300,000 Federal National Mortgage Assoc., 5.25%, 04/19/01 295,500
500,000 Housing Urban Development, 5.30%, 08/01/01 488,815
150,000 World Bank Gl Bd, 8.13%, 03/01/01 152,063
------------------
Total U.S. Government Agencies 1,422,498
------------------
Mortgage-Related Securities (28.71%)
Collateralized Mortgage Obligations (7.20%)
190,000 Advanta Mortgage Loan Trust 1999-1 A4, 6.30%, 04/25/27 179,362
565,000 Centex Home Equity, 6.04%, 06/25/30 553,474
73,936 Federal Home Loan Mortgage Corp. 1395, 6.00%, 11/15/21 72,124
1,343 Federal National Mortgage Assoc. 1991-174 K, 7.00%, 04/25/06 1,337
152,162 General Electric Cap Mtge Serv, 7.30%, 03/25/12 151,479
46,683 GE Capital Mtg 1997-HE3 A3, 6.52%, 08/25/13 46,456
60,241 Green Treee 1996-2 A2, 6.45%, 04/15/27 60,099
178,709 Salomon Mortgage Sec. VII 1995-1 PO, 10.54%*, 02/25/25 109,500
500,000 Southern Pacific Secured Assets Corp 1998-1 A6, 7.08%, 03/25/28 475,915
71,132 TMS Auto Grantor Trust 1997-4 A2, 6.35%, 03/20/04 70,860
250,000 Toyota Auto Lease Trust 1997-A A2, 6.35%, 04/26/04 249,325
------------------
1,969,931
------------------
Federal Home Loan Mrtge. Corp. Mortgage-Backed Pools (1.50%)
41,109 #C00126, 8.50%, 06/01/22 41,810
195,514 #E00548, 6.50%, 05/01/13 189,298
184,795 #00538, 6.50%, 03/01/13 179,116
------------------
410,224
------------------
Federal National Mortgage Association Mortgage-Backed Pools (10.50%)
308,135 #251286, 7.00%, 11/01/27 298,703
157,232 #313873, 7.00%, 12/01/27 152,646
388,330 #408827, 6.50%, 02/01/28 367,671
444,898 #251813, 6.50%, 07/01/28 417,092
937,585 #448917, 6.50%, 11/01/28 881,808
778,566 #430093, 7.00%, 06/01/28 752,850
------------------
2,870,770
------------------
Government National Mortgage Assoc. Mortgage-Backed Pools (9.51%)
12,195 #315929, 9.00%, 06/15/22 12,590
22,173 #341681, 8.50%, 01/15/23 22,676
26,683 #354189, 7.50%, 05/15/23 26,540
57,433 #359600, 7.50%, 07/15/23 56,931
150,616 #376218, 7.50%, 08/15/25 149,676
84,023 #385300, 8.00%, 10/15/24 84,907
74,272 #410049, 8.00%, 07/15/25 75,049
305,311 #412334, 7.00%, 10/15/27 295,959
133,147 #412645, 8.00%, 08/15/26 134,561
123,374 #440404, 7.50%, 04/15/27 122,672
189,764 #454375, 7.00%, 03/15/28 184,886
917,487 #462384, 7.00%, 11/15/27 893,320
225,882 #780213, 7.50%, 08/15/25 224,716
318,165 #780619, 7.00%, 08/15/12 314,850
------------------
2,599,333
------------------
Total Mortgage-Related Securities 7,850,258
------------------
U.S. Taxable Municipal Bonds (4.22%)
125,000 Fulton, MO Import Taxable Sinking Fund, 7.60%, 07/01/11 126,655
241,927 Mille Lacs Band Of Ojibwe Indians (Grand Casino) Rev. Notes, 8.00%, 06/01/04 238,840
25,879 Oregon Department of Transportation, 9.00%, 06/15/00 25,903
90,000 Prairie Du Chien, WI, Redevelopment Auth., 7.60%, 04/01/05 90,444
100,000 Prairie Du Chien, WI, Redevelopment Auth., 7.625%, 04/01/06 100,930
410,000 Rhode Island Housing and Mortgage, 6.62%, 04/01/02 404,451
165,000 Washington St. HSA, 7.65%, 01/01/04 165,875
------------------
Total U.S. Taxable Municipal Bonds 1,153,098
------------------
Corporate Bonds (38.84%)
Banking and Financial Services (2.10%)
250,000 GMAC, 8.875%, 06/01/10 278,750
130,000 Hubco, Inc., 7.75%, 01/15/04 129,350
165,000 Lehman Brothers MTN, 8.05%, 01/15/19 164,381
------------------
572,481
------------------
Consumer Goods and Services (16.68%)
300,000 Alberto-Culver, 6.38%, 06/15/28 273,750
140,000 Dayton Hudson, 10.00%, 12/01/00 142,450
700,000 Healthsouth Corp, 3.25%, 04/01/03 546,875
215,000 J.C. Penney, 7.38%, 08/15/08 178,987
750,000 Olsten Corp, 7.00%, 03/15/06 700,313
700,000 Omnicare, 5.00%, 12/01/07 511,000
1,510,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 781,425
743,000 Reebok International, 6.75%, 09/15/05 690,061
750,000 Tupperware, 7.25%, 10/01/06 735,938
------------------
4,560,799
------------------
Industrial Goods and Services (14.03%)
315,000 ABC Rail Product, 8.75%, 12/31/04 217,350
145,000 AGCO Corp, 8.50%, 03/15/06 133,944
415,000 Fletcher Challenge, 6.75%, 03/24/05 388,544
500,000 Geon Company, 6.88%, 12/15/05 478,750
725,000 Ikon Office, 6.75%, 11/01/04 667,906
277,000 IMC Global, 9.45%, 12/15/11 305,046
700,000 Millipore Corp, 7.20%, 04/01/02 680,750
590,000 Teck Corp, 3.75%, 07/15/06 420,375
625,000 Thermo Instrument, 4.00%, 01/15/05 543,750
------------------
3,836,415
------------------
International (1.92%)
325,000 Naples, City of, Italy, 7.52%, 07/15/06 325,406
185,000 Nova Scotia, 8.25%, 11/15/19 198,875
------------------
524,281
------------------
Real Estate (1.36%)
150,000 HRPT Properties, 6.88%, 08/26/02 145,125
10,000 Realty Income Sr. Notes, 8.25%, 11/15/08 226,250
------------------
371,375
------------------
Utilities (2.75%)
500,000 Boise Cascade, 7.05%, 05/15/05 470,000
75,000 Citizens Utility Co. 6.80%, 08/15/26 73,312
5,357 Salton Sea, 7.02%, 05/30/00 5,357
200,000 Texas East Trans., 8.25%, 10/15/04 204,250
------------------
752,919
------------------
Total Corporate Bonds 10,618,270
------------------
Commercial Paper (4.39%)
1,200,000 Co-op Tractor, 6.30%***, 04/03/00 1,199,580
------------------
Mutual Funds (0.00%)
702 Government Assets Fund T Shares, 5.36%** 702
------------------
Total Investments in Securities (99.01%)
(Cost $27,797,444)(a) $27,069,469
Other Assets & Liabilities (0.99%) 269,678
------------------
Net Assets (100.00%) $27,339,147
==================
- ---------------
(a) Cost for federal income tax purposes of $27,798,850 differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation.......$146,347
Unrealized Depreciation......($875,728)
Net Unrealized Depreciation..($729,381)
* 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 yield at date of purchase.
** Rate shown is as of March 31, 2000.
*** Effective yield at date of purchase.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE INCOME FUND
We continue to position the average maturity of the Income Fund slightly shorter
than our benchmark. The cyclical economic upswing both here and abroad is
increasing inflationary pressures. The dramatic inversion of the Treasury yield
curve may lessen as investors become more focused on real rates of return.
Opportunities in the corporate bond market remain attractive. Government agency
and mortgage-backed sectors are underweight. For the year ended March 31, 2000,
the Fund posted a total return after operating expenses of 2.13%*.
As of March 31, 2000, approximately 41% of the Fund's net assets were invested
in mortgage-related securities, 19% in Treasuries and agencies, 35% in corporate
bonds, 3% in taxable municipal securities, and 2% in cash and cash equivalents.
The average maturity of these holdings was 8.60 years with an average credit
quality of AA1**.
[GRAPH]
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's holdings is subject to change.
The performance of the Vintage Income Fund is measured against the Lehman
Brothers Intermediate Government/Corporate Bond Index and the aggregate index.
The Government/Corporate Bond Index is an unmanaged index generally
representative of the performance of intermediate-term government and corporate
bonds with maturities of 1-10 years. The aggregate index represents the
performance of the overall Bond Market. The indices do not reflect the
deductions of expenses associated with a mutual fund, such as investment
management fees. The Fund's performance reflects the deduction of fees for these
value-added services.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
U.S. Treasury Bonds (11.38%)
$2,250,000 7.50%, 11/15/16 $2,546,550
6,000,000 7.25%, 08/15/22 6,783,960
2,800,000 7.13%, 02/15/23 3,130,736
-----------------
-----------------
Total U.S. Treasury Bonds 12,461,246
-----------------
U.S. Treasury Notes (2.50%)
1,000,000 4.88%, 03/31/01 985,460
1,750,000 6.50%, 05/31/02 1,749,790
-----------------
Total U.S. Treasury Notes 2,735,250
-----------------
U.S. Government Agencies (5.52%)
1,000,000 Federal Home Loan Bank, 5.53%, 11/20/08 892,770
1,000,000 Federal Home Loan Bank, 5.55%, 11/25/08 893,580
1,000,000 Federal Home Loan Mortgage Corp, 5.00%, 02/15/01 986,380
3,250,000 Federal National Mortgage Assoc, 7.25%, 01/15/10 3,267,680
-----------------
Total U.S. Government Agencies 6,040,410
-----------------
Mortgage Related Securities (40.42%)
Collateralized Mortgage Obligations (6.00%)
2,396,826 Federal Agricultural Mortgage Corp Series CA-10011, 7.59%, 01/25/02 2,384,195
2,000,000 Federal Home Loan Mortgage Corp Series 1873 D, 7.00%, 04/15/09 1,986,100
1,000,000 Federal National Mortgage Assoc Series 1994-36 N, 6.50%, 03/25/24 891,810
812,263 Prudential Home Mortgage Securities, 7.15%, 03/25/24 802,564
515,059 Ryland Mortgage Securities Corp 1993-4 A5, 7.50%, 08/25/24 507,348
-----------------
6,572,017
-----------------
Federal Home Loan Mortgage Corp Mortgage-Backed Pools (5.64%)
2,476,424 #C00896, 7.50%, 12/01/29 2,437,198
1,696,532 #C00592, 7.00%, 02/01/28 1,644,907
2,220,238 #19588, 6.50%, 12/01/28 2,091,020
-----------------
6,173,125
-----------------
Federal National Mortgage Association Mortgage-Backed Pools (6.06%)
840,708 #303971, 7.50%, 07/01/16 831,839
1,752,735 #251614, 7.00%, 04/01/28 1,697,016
2,046,683 #251697, 6.50%, 05/01/28 1,931,311
1,442,538 #252334, 6.50%, 02/01/29 1,354,673
841,878 #430203, 7.00%, 06/01/28 812,690
-----------------
6,627,529
-----------------
Government National Mortgage Association Mortgage-Backed Pools (13.69%)
2,140,680 #462556, 6.50%, 02/15/28 2,028,316
1,658,052 #780584, 7.00%, 06/15/27 1,618,557
1,911,143 #780717, 7.00%, 02/15/28 1,862,810
1,367,925 #451522, 7.50%, 10/15/27 1,359,376
1,435,848 #451459, 7.50%, 09/15/27 1,423,285
1,877,924 #486760, 6.50%, 12/15/28 1,776,009
429,611 #780075, 8.00%, 03/15/25 434,362
1,225,532 #780453, 7.50%, 12/15/25 1,218,890
303,756 #21608, 7.50%, 02/20/09 303,191
2,155,224 #469699, 7.00%, 11/15/28 2,093,692
898,806 #486467, 7.00%, 08/15/28 873,136
-----------------
14,991,624
-----------------
Asset Backed Securities (9.03%)
1,000,000 Bear Stearns CBO 1998-1 Class A-2A, 6.72%, 06/15/10 915,000
1,000,000 Chyps CBO Series 1999-1 Class A1, 6.47%, 02/01/11 920,000
973,791 Denver Arena Trust, 6.94%, 11/15/19 870,023
423,247 Green Tree Recreational Equipment, 6.55%, 07/15/28 423,318
2,000,000 Greentree 96-F Class A4, 7.30%, 01/15/28 2,002,640
1,910,039 IMC Home Equity Loan 1996-4 Class A4, 7.11%, 08/25/14 1,895,638
892,831 Nations Credit Grantor Trust 97-1, 6.75%, 08/15/13 878,823
2,000,000 Olympic Auto 96-D Class A5, 6.25%, 11/15/04 1,982,240
-----------------
9,887,682
-----------------
Total Mortgage-Related Securities 44,251,977
-----------------
U.S. Taxable Municipal Bonds (3.14%)
1,000,000 Detroit Michigan Building Authority, 6.60%, 07/01/03 987,840
1,000,000 Las Vegas NV., 7.20%, 07/01/15 981,280
438,524 Mille Lacs Band of Ojibwe Indians (Grand Casino) Rev. Notes, 8.00%, 06/01/04 432,928
1,200,000 University of Soutnern California, 5.87%, 01/01/14 1,035,648
-----------------
Total U.S. Taxable Municipal Bonds 3,437,696
-----------------
Corporate Bonds (35.33%)
Banking and Financial Services (3.09%)
500,000 John Deere, 8.63%, 08/01/19 509,375
1,000,000 Lehman Brothers, 6.63%, 02/05/06 945,000
500,000 Northern Trust Co, 6.50%, 05/01/03 487,500
1,500,000 Paine Webber Group Inc, 6.45%, 12/01/03 1,441,875
-----------------
3,383,750
-----------------
Consumer Goods and Services (13.70%)
2,000,000 Ford Motor Company, 7.13%, 11/15/25 1,887,500
1,950,000 Healthsouth Corp, 3.25%, 04/01/03 1,523,438
1,000,000 J.C. Penney & Co., 7.38%, 08/15/08 832,500
1,100,000 Jones Apparel, 7.50%, 06/15/04 1,050,500
950,000 K-Mart Corp, 7.17%, 07/24/00 947,625
1,000,000 MCI Communications, 8.25%, 01/20/23 1,008,750
1,490,000 Omnicare, 5.00%, 12/01/07 1,087,700
4,750,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 2,458,125
500,000 Reebok International, 6.75%, 05/15/00 499,375
1,000,000 Reebok International, 6.75%, 09/15/05 928,750
175,556 Secured Restaurant Trust, 10.25%, 11/15/00 178,903
2,645,000 Tupperware, 7.25%, 10/01/06 2,595,406
-----------------
14,998,572
-----------------
Governement Agency (0.62%)
700,000 Quebec Province, 6.19%, 03/10/26 679,875
-----------------
Industrial Goods and Services (11.19%)
2,000,000 Fletcher Challenge, 7.75%, 06/20/06 1,935,000
2,000,000 Geon Company, 6.88%, 12/15/05 1,915,000
1,000,000 Ikon Office, 6.75%, 11/01/04 921,250
2,300,000 Olsten Corp, 7.00%, 03/15/06 2,147,625
2,100,000 Owens-Illinois, 8.10%, 05/15/07 1,995,000
2,000,000 Teck Corp, 3.75%, 07/15/06 1,425,000
2,200,000 Thermo Instrument, 4.00%, 01/15/05 1,914,000
-----------------
12,252,875
-----------------
Real Estate (4.92%)
1,250,000 Avalon Bay, 6.80%, 07/15/06 1,168,750
2,000,000 HRPT Properties Trust, 6.88%, 08/26/02 1,935,000
1,550,000 Nationwide Health Properties, 7.23%, 11/08/06 1,358,188
1,000,000 Simon Property Group, Inc., 7.13%, 02/09/09 925,000
-----------------
5,386,938
-----------------
Utilities (1.81%)
1,000,000 Florida Power & Light, 6.875%, 4/1/2004 983,750
1,000,000 Philadelphia Electric, 7.375%, 12/15/2001 1,000,000
-----------------
1,983,750
-----------------
Total Corporate Bonds 38,685,760
-----------------
Mutual Funds (2.14%)
2,347,115 Government Assets Fund T Shares, 5.36%** 2,347,115
-----------------
Total Investments in Securities (100.43%)
(Cost $113,018,874)(a) $109,959,454
Other Assets & Liabilities (-0.43%) (473,221)
-----------------
Net Assets (100.00%) $109,486,233
=================
- ---------------
(a) Cost for federal income tax purposes of $113,100,916 differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation........$2,579,436
Unrealized Depreciation.......($5,720,898)
Net Unrealized Depreciation...($3,141,462)
** Rate shown is as of March 31, 2000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE MUNICIPAL BOND FUND
We continue to evaluate non-callable bonds that are appropriately structured.
Lack of supply coupled with lower treasury yields have led to a well-supported
market and lower yields. As supply increases, pressure on municipal yields may
rise and we will take advantage of higher yields while lengthening the maturity
of the Fund. The Fund produced a total return after operating expenses of 0.10%*
for the year ended March 31, 2000.
As of March 31, 2000, the portfolio was widely diversified with holdings in a
wide cross-section of states. The average maturity of these holdings was 7.80
years with an average credit quality of AA1**.
[GRAPH]
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's holdings is subject to change.
The performance of the Vintage Municipal Bond Fund is measured against the
Merrill Lynch Intermediate Municipal Bond Index, an unmanaged index generally
representative of the performance of municipal bonds with maturities of 1-20
years. The index does not reflect the deduction of expenses associated with a
mutual fund, such as investment management fees. The Fund's performance reflects
the deduction of fees for these value-added services.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
MUNICIPAL BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Par Value Description Value
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Municipal Bonds (87.26%)
Arizona (2.05%)
$1,000,000 Phoenix, AZ G.O., 5.00%, 07/01/10 $997,540
-------------------
Delaware (1.03%)
500,000 Sussex County, DE, 4.90%, 10/15/2001 502,520
-------------------
Florida (6.23%)
1,000,000 Dade County, FL, 7.65%, 04/01/10 1,020,000
500,000 Florida School Boards Assoc., Inc. Lease Revenue, 6.75%, 07/01/04 503,255
500,000 Jacksonville, FL Water & Sewer, 5.00%, 10/01/20 499,655
500,000 Martin County, FL, General Obligation, 4.25%, 02/01/01 499,850
500,000 State of Florida Board of Education, 5.13%, 06/01/05 506,640
-------------------
3,029,400
-------------------
Idaho (1.04%)
500,000 Meridian Joint School District, #2 Idaho, 5.00%, 07/30/03 503,780
-------------------
Illinois (17.55%)
200,000 Cherry Valley General Obligations, 6.60%, 01/01/01 203,342
1,000,000 Illinois EFA-Depaul University, 4.63%, 09/01/24 971,390
1,000,000 Illinois Health Facility-Northwestern, 6.75%, 08/15/11 1,044,650
465,000 Illinois Housing Development Authority Single Family, 6.50%, 02/01/09 480,982
1,000,000 Illinois State Sales Tax Revenue, 5.00%, 06/15/09 991,930
1,000,000 Illinois State Sales Tax Revenue, 5.10%, 06/15/10 994,030
1,000,000 Illinois State Toll Highway Authority Revenue, 5.50%, 01/01/14 1,012,440
1,000,000 Joliet Illinois, 6.25%, 01/01/11 1,021,270
500,000 Kane County, IL Motor Fuel Transport Revenue, 5.40%, 03/01/06 505,520
1,000,000 Macon County And Decatur Illinois Ctf Partn, 6.50%, 01/01/04 1,052,710
250,000 Winnebago County, Il School District 122, 5.75%, 06/01/01 253,615
-------------------
8,531,879
-------------------
Indiana (13.19%)
1,000,000 Evansville, IN Building Authority, 5.30%, 08/01/08 1,014,720
1,000,000 Highland, IN Sch Bldg Corp, 5.25%, 07/05/14 964,890
500,000 Indiana Bond Bank (Elkhart Water\Sewer Refunding), 5.55%, 11/01/10 502,160
1,000,000 Indiana University Higher Ed, 6.80%, 08/01/04 1,044,760
1,000,000 Indianapolis, IN Public Transportation, 6.00%, 07/01/10 1,037,640
1,000,000 Kokomo-Center, IN School Building Corp., 6.75%, 07/15/04 1,068,300
750,000 Marion County, IN, 6.60%, 06/01/03 781,305
-------------------
6,413,775
-------------------
Iowa (3.10%)
1,000,000 Cedar Rapids, IA, General Obligation, 5.00%, 06/01/11 985,640
500,000 Iowa State Certificate Participation, 6.50%, 07/01/06 523,145
-------------------
-------------------
1,508,785
-------------------
Kansas (2.07%)
1,000,000 Johnson County, KS, School District #233, 5.30%, 09/01/13 1,005,480
-------------------
Massachusetts (2.09%)
500,000 Massachusetts Bay Transportation Authority, 5.30%, 03/01/08 512,605
500,000 Massachusetts State Port Authority, 5.50%, 07/01/15 501,895
-------------------
1,014,500
-------------------
Michigan (4.14%)
1,000,000 Michigan State HFA, 5.75%, 05/15/16 1,009,180
1,000,000 Wayne State University, 5.38%, 11/15/13 1,002,740
-------------------
2,011,920
-------------------
Minnesota (2.07%)
1,000,000 Minneapolis, MN , Reference Series A, 5.10%, 12/01/08 1,005,790
-------------------
Nevada (1.02%)
500,000 State of Nevada, 4.40%, 11/01/01 498,270
-------------------
New Jersey (1.02%)
500,000 New Jersey Wastewater Treatment Trust Series A, 4.80%, 09/01/06 496,280
-------------------
New York (2.05%)
1,000,000 Long Island NY Power, 4.10%, 12/01/00 998,740
-------------------
Rhode Island (1.03%)
500,000 Rhode Island State, 4.90%, 06/15/04 501,095
-------------------
Texas (7.28%)
500,000 Dallas, TX, Water & Sewer, 4.90%, 04/01/04 500,550
1,000,000 Pharr-San Juan-Alamo, TX. Independent School District, 5.25%, 02/01/08 1,011,360
900,000 Sam Rayburn Texas Municipal, 6.00%, 09/01/10 964,782
1,000,000 San Antonio, TX, 6.00%, 08/01/08 1,061,100
-------------------
3,537,792
-------------------
Utah (1.06%)
500,000 Salt Lake County, UT, 5.50% 12/15/04 514,970
-------------------
Virginia (2.50%)
1,000,000 Virginia Beach, VA, 5.40%, 09/01/09 1,016,930
195,000 Virginia Educational Loan Authority Series E, 5.50%, 03/01/01 196,964
-------------------
1,213,894
-------------------
Washington (8.02%)
1,000,000 Benton County, WA, Public Utility, 5.45%, 11/01/08 1,022,370
800,000 Grant County, WA, Public Utilities Hydro-Electric, 5.60%, 01/01/10 822,184
1,000,000 Pierce County, WA, School District #001, 6.00%, 12/01/10 1,071,560
1,000,000 Thurston County, WA #111, 5.00%, 12/01/10 983,710
-------------------
3,899,824
-------------------
Wisconsin (8.20%)
500,000 City of Beloit, WI, Sewer System Revenue Bond, 4.80%, 07/01/05 495,760
500,000 Madison, WI 5.00%, 04/01/05 503,075
500,000 Milwaukee, WI, 5.15%, 11/15/08 505,130
500,000 Sturgen Bay, 4.90%, 01/01/06 496,655
1,000,000 Wisconsin State Government Obligation, 5.00%, 05/01/11 980,790
1,000,000 Wisconsin State Series A, 5.00%, 05/01/09 1,003,080
-------------------
3,984,490
-------------------
Wyoming (0.52%)
250,000 Cheyenne, Wy General Obligations Unlimited, 5.45%, 12/01/01 253,568
-------------------
Total Municipal Bonds 42,424,292
-------------------
Alternative Minimum Tax Paper (11.20%)
1,000,000 Alaska Student Loan, 5.63%, 07/01/07 1,011,440
500,000 Austin, TX, Airport Revenue, 5.50%, 11/15/06 509,120
300,000 Illinois Student Assistance Commission, Student Loan Revenue, Series M, 6.30%, 03/01/03 308,481
500,000 Iowa Student Loan, 5.75%, 12/01/06 509,980
1,000,000 Iowa Student Loan Liquidity Corp. Series C, 5.10%, 06/01/09 977,750
410,000 Massachusetts Education Loan Authority, 5.60%, 07/01/06 414,957
35,000 New Mexico Educational Assistance, 5.75%, 08/01/07 35,498
500,000 South Dakota Student Loan, 5.85%, 08/01/00 502,495
190,000 Student Loan Funding Corp., Series C, 5.50%, 12/01/01 189,939
1,000,000 Utah Bd Regents, 5.20%, 05/01/08 983,140
-------------------
Total Alternative Minimum Tax Paper 5,442,800
-------------------
Mutual Funds (0.53%)
256,394 B.T. Tax Free Money Fund, 3.07%** 256,394
-------------------
Total Investments in Securities (98.99%)
(Cost $48,275,717)(a) $48,123,486
Other Assets & Liabilities (1.01%) 492,766
-------------------
Net Assets (100.00%) $48,616,252
===================
- ---------------------
(a) Cost for federal income tax purposes is identical and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation..........$252,379
Unrealized Depreciation.........($404,610)
Net Unrealized Depreciation.....($152,231)
** Rate shown is as of March 31, 2000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE BALANCED FUND
The year ended March 31, 2000 provided better than average Balanced Fund
performance compared to historical averages. The Fund's asset allocation in
favor of stocks benefited shareholders during the period. For the year ended
March 31, 2000, the Fund produced a total return after operating expenses of
15.56%*.
MANAGING FOR THE FUTURE
In the first quarter of 2000, we reduced our stock allocation to a neutral
position in the Balanced Fund. While we believe the stock market in general
remains attractive due to strong earnings and productivity gains, we believe
valuations moved ahead of themselves during the period, warranting a neutral
position in the Fund. The bond holdings remain shorter in maturity than the
Fund's benchmark while focusing on selected corporate issuers. As interest rates
stabilize, we will look to reallocate to a new strategic position.
As of March 31, 2000, approximately 39% of the Fund's net assets were invested
in fixed income securities and 61% in stocks. The top five equity holdings in
the equity portfolio were: Microsoft (2.88% of the Fund's net assets), Nortel
Networks (2.61%), Intel Corp (2.46%) Cisco Systems (2.40%), and General Electric
(2.15%). The fixed income portion of the portfolio was invested in a variety of
U. S. Treasury and agency securities, corporate bonds, taxable municipal bonds,
and mortgage-related securities. The average credit quality was AAA**.
[GRAPH]
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's holdings is subject to change.
The performance of the Vintage Balanced Fund is measured against a composite of
the S&P 500 Index, an unmanaged index generally representative of the
performance of the U.S. stock market, and the Lehman Brothers Intermediate
Government/Corporate Bond Index, an unmanaged index generally considered to be
representative of the performance of government and corporate bonds with
maturities of 1-10 years. In the composite, each index is given a 50% weighting.
The two indices do not reflect the deduction of expenses associated with a
mutual fund, such as investment management fees. The Fund's performance reflects
the deduction of fees for these value-added services.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
BALANCED FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Shares/
Par Value Description Value
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
US Treasury Bonds (4.95%)
$1,300,000 7.50%, 11/15/16 $1,471,340
1,400,000 7.25%, 08/15/22 1,582,924
1,000,000 7.13%, 02/15/23 1,118,120
500,000 8.00%, 11/15/21 608,055
------------------
Total U.S. Treasury Bonds 4,780,439
------------------
U.S. Treasury Notes (3.75%)
650,000 6.25%, 01/31/02 647,056
1,000,000 6.63%, 05/15/07 1,018,250
2,000,000 5.63%, 12/31/02 1,957,920
------------------
Total U.S. Treasury Notes 3,623,226
------------------
U.S. Government Agency (3.93%)
550,000 Federal Home Loan Bank, 6.13%, 08/15/03 533,973
500,000 Federal Home Loan Bank, 5.50%, 08/13/01 491,180
1,000,000 Federal Home Loan Mortgage Corp, 5.00%, 01/15/04 930,960
1,500,000 Federal National Mortgage Assoc, 7.25%, 01/15/10 1,508,160
350,000 Federal National Mortgage Assoc, 6.05%, 07/28/03 339,360
------------------
Total U.S. Government Agency 3,803,633
------------------
Mortgage Related Securities (9.63%)
Collateralized Mortgage Obligations (0.29%)
8,150 Federal National Mortgage Assoc, 1992-34 Class E, 7.00%, 07/25/20 8,117
155,311 Federal National Mortgage Assoc, 1992-46 Class J, 5.00%, 01/25/07 149,118
56,863 Federal National Mortgage Assoc, 1994-85 Class E, 6.00%, 11/25/06 56,246
108,969 Salomon Bros. Mortgage Sec. VII, 1995-1 Class PO, 10.54%***, 02/25/25 66,769
------------------
280,250
------------------
Federal Home Loan Mortgage Corp. Mortgage-Backed Pools (2.54%)
495,285 #C00896, 7.50%, 12/01/29 487,440
424,133 #C00592, 7.00%, 02/01/28 411,227
13,479 #A00851, 8.50%, 12/01/19 13,707
553,076 #17281, 6.50%, 11/02/28 520,964
555,060 #19588, 6.50%, 12/01/28 522,755
506,534 #E20252, 7.00%, 07/01/11 500,232
------------------
2,456,325
------------------
Federal National Mortgage Assoc. Mortgage-Backed Pools (1.97%)
102,712 #251286, 7.00%, 11/01/27 99,568
511,671 #251697, 6.50%, 05/01/28 482,828
480,846 #252334, 6.50%, 02/01/29 451,558
540,866 #428865, 7.00%, 06/01/28 521,687
359,145 #430203, 7.00%, 06/01/28 346,694
------------------
------------------
1,902,335
------------------
Government National Mortgage Assoc. Mortgage-Backed Pools (4.14%)
535,170 #462556, 6.50%, 02/15/28 507,079
414,514 #780584, 7.00%, 06/15/27 404,640
341,981 #451522, 7.50%, 10/15/27 339,844
48,664 #305975, 9.00%, 07/15/21 50,243
20,267 #318184, 8.50%, 11/15/21 20,721
55,382 #359600, 7.50%, 07/15/23 54,898
147,774 #376218, 7.50%, 08/15/25 146,852
52,515 #385300, 8.00%, 10/15/24 53,067
36,378 #410049, 8.00%, 07/15/25 36,759
101,770 #412334, 7.00%, 10/15/27 98,653
469,481 #486760, 6.50%, 12/15/28 444,002
206,850 #780075, 8.00%, 03/15/25 209,137
525,228 #780453, 7.50%, 12/15/25 522,381
159,082 #780619, 7.00%, 08/15/12 157,425
538,806 #469699, 7.00%, 11/15/28 523,423
449,403 #486467, 7.00%, 08/15/28 436,568
------------------
4,005,692
------------------
Asset Backed Securities (0.69%)
193,988 Green Tree Recreational Equipment, 6.55%, 07/15/28 194,021
250,000 Olympic Auto Trust, 6.00%, 06/15/02 248,968
223,463 UCFC Home Equity Loan, 7.48%, 03/15/20 224,371
------------------
667,360
------------------
Total Mortgage-Related Securities 9,311,962
------------------
U.S. Taxable Municipal Bonds (1.31%)
205,000 Berry Creek, CO, 6.65%, 12/01/01 203,475
195,000 Fulton, MO Golf Course, 7.60%, 07/01/11 197,582
151,189 Mille Lacs Band Of Ojibwe Indians, 8.00%, 06/01/04 149,260
200,000 New Orleans, LA Hsg. Dev., 8.00%, 12/01/03 196,870
16,357 Oregon D.O.T., 9.00%, 06/15/00 16,372
250,000 Portland, OR Multifamily Hsg., 7.625%, 12/01/01 245,405
300,000 University of Southern California, 5.87%, 01/01/14 258,912
------------------
Total U.S. Taxable Municipal Bonds 1,267,876
------------------
Corporate Bonds (13.71%)
Banking and Financial Services (2.87%)
400,000 American Express, 6.25%, 08/10/05 399,672
500,000 Bear Stearns, 6.25%, 07/15/05 468,125
460,000 Hubco, Inc, 7.75%, 01/15/04 457,700
250,000 Lehman Bros. MTN, 8.05%, 01/15/19 249,062
250,000 Merrill Lynch, 6.25%, 10/15/08 228,125
500,000 Paine Webber Group Inc, 6.45%, 12/01/03 480,625
500,000 Salomon Smith Barney, 6.63%, 11/15/03 490,625
------------------
2,773,934
------------------
Consumer Goods and Services (4.12%)
500,000 Ford Motor Company, 7.13%, 11/15/25 471,875
550,000 Healthsouth Corp, 3.25%, 04/01/03 429,687
250,000 J.C. Penney & Co., 6.13%, 11/15/03 219,688
400,000 Jones Apparel, 7.50%, 06/15/04 382,000
300,000 K Mart Corp, 7.17%, 7/24/00 299,250
500,000 Omnicare, 5.00%, 12/01/07 365,000
1,600,000 Pep Boys - Manny, Moe & Jack Zero Coupon, 09/20/11 828,000
500,000 Reebok International, 6.75%, 05/15/00 499,375
500,000 Tupperware, 7.25%, 10/01/06 490,625
------------------
3,985,500
------------------
Government Agency (0.30%)
300,000 Quebec Province, 6.19%, 03/10/26 291,375
------------------
Industrial Goods and Services (4.44%)
100,000 ATCH Top & SF, 7.09%, 02/15/01 99,708
500,000 Burlington Resources, 9.63%, 06/15/00 502,500
500,000 Cummins Engine, 6.75%, 02/15/27 471,875
500,000 Fletcher Challenge, 7.75%, 06/20/06 483,750
500,000 Ikon Office, 6.75%, 11/01/04 460,625
245,000 Millipore Corp, 7.20%, 04/01/02 238,262
700,000 Olsten Corp, 7.00%, 03/15/06 653,625
500,000 Owens-Illinois, 8.10%, 05/15/07 475,000
600,000 Teck Corp, 3.75%, 07/15/06 427,500
550,000 Thermo Instrument, 4.00%, 01/15/05 478,500
------------------
------------------
4,291,345
------------------
International (0.17%)
150,000 Nova Scotia, 8.25%, 11/15/19 161,250
------------------
Real Estate (1.30%)
500,000 Avalon Bay, 6.80%, 07/15/06 467,500
500,000 HRPT Properties Trust, 6.88%, 08/26/02 483,750
350,000 Nationwide Health Properties, 7.23%, 11/08/06 306,687
------------------
------------------
1,257,937
------------------
Utilities (0.51%)
500,000 Washington Water And Power, 6.24%, 10/02/00 497,500
------------------
Total Corporate Bonds 13,258,841
------------------
Common Stocks (60.82%)
Advertising (1.06%)
11,000 Omnicom Group 1,027,813
------------------
Banking (2.28%)
23,400 Bank Of New York 972,562
30,000 Wells Fargo 1,228,125
------------------
2,200,687
------------------
Broadcasting (1.07%)
15,000 Clear Channel Communications* 1,035,938
------------------
Chemicals (1.15%)
25,000 Rohm & Haas 1,115,625
------------------
Computer Hardware (5.41%)
30,000 Cisco Systems* 2,319,375
8,800 IBM 1,038,400
20,000 Sun Microsystems* 1,874,063
------------------
5,231,838
------------------
Computer-Software & Peripherals (5.34%)
20,000 Citrix Systems* 1,325,000
10,000 Lexmark Interntational Group* 1,057,500
26,200 Microsoft* 2,783,750
------------------
------------------
5,166,250
------------------
Consumer Goods & Services (2.19%)
24,000 Clorox 780,000
17,000 Kimberly-Clark 952,000
6,900 Procter & Gamble 388,125
------------------
2,120,125
------------------
Diversified (3.00%)
15,000 Kansas City Southern 1,289,062
8,000 Minnesota Mining and Manufacturing 708,500
18,000 Tyco International 897,750
------------------
2,895,312
------------------
Electrical & Electronic (2.15%)
13,400 General Electric 2,079,512
------------------
Entertainment (0.74%)
15,000 News Corp 716,250
------------------
Financial Services (4.70%)
30,000 AXA Financial 1,076,250
20,000 Citigroup 1,186,250
26,000 Fannie Mae 1,467,375
10,000 Morgan Stanley Dean Witter 815,625
------------------
------------------
4,545,500
------------------
Industrial Goods & Services (1.31%)
20,000 United Technologies 1,263,750
------------------
Insurance (1.04%)
9,140 American International Group 1,000,830
------------------
Medical Equipment & Supplies (1.41%)
10,000 Guidant* 588,125
15,000 Medtronic 771,562
------------------
------------------
1,359,687
------------------
Newspaper & Publishing (0.30%)
8,000 Tribune 292,500
------------------
Oil & Gas Exploration Products & Services (5.82%)
25,000 Coastal 1,150,000
8,000 Exxon Mobile 622,500
18,300 Halliburton 750,300
13,800 Schlumberger 1,055,700
25,000 Transocean Sedco Forex 1,282,812
13,000 Weatherford International* 766,188
------------------
5,627,500
------------------
Paper Products (1.02%)
25,000 Georgia Pacific 989,062
------------------
Pharmaceuticals (6.36%)
20,800 Abbott Laboratories 731,900
15,000 American Home Products 804,375
20,000 Bristol-Myers Squibb 1,155,000
25,000 Elan ADR* 1,187,500
20,000 Warner Lambert 1,950,000
8,000 Watson Pharmaceuticals* 317,500
------------------
6,146,275
------------------
Photography (0.56%)
10,000 Eastman Kodak 543,125
------------------
Retail - General Merchandise (2.11%)
7,500 Kohl's* 768,750
17,000 Target 1,270,750
------------------
------------------
2,039,500
------------------
Retail - Specialty Stores (2.05%)
23,000 Lowe's 1,342,625
25,000 Walgreen 643,750
------------------
1,986,375
------------------
Semiconductors (2.46%)
18,000 Intel 2,374,875
------------------
Technology (0.44%)
20,000 Parametric Technology* 421,250
------------------
Telecommunications-Services and Equipment (6.85%)
17,000 Alltel 1,072,062
19,500 AT&T 1,096,875
11,250 MCI Worldcom* 509,766
10,000 Motorola 1,423,750
20,000 Nortel Networks 2,520,000
------------------
------------------
6,622,453
------------------
Total Common Stocks 58,802,032
------------------
Mutual Funds (2.54%)
2,458,605 Government Assets Fund T Shares, 5.36%** 2,458,605
------------------
Total Investments in Securities (100.64%)
(Cost $79,455,439)(a) $97,306,614
Other Assets & Liabilities (-0.64%) (618,822)
------------------
Net Assets (100.00%) $96,687,792
==================
- ---------------
(a) Cost for federal income tax purposes is identical and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation.......$20,432,015
Unrealized Depreciation.......($2,580,840)
Net Unrealized Appreciation...$17,851,175
* Represents non-income producing securities.
** Rate shown is as of March 31, 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 yield at date of purchase.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE EQUITY FUND
This past fiscal year will likely be remembered as the year that dramatized the
impact of the technology sector on the equity markets. Companies associated with
technology initiatives were alternately the blessing or the curse of managed
portfolios. Many companies that experienced dramatic increases in market
valuation had little or no history of generating net earnings for shareholders.
The market seemed caught up in a continuing "Internet frenzy".
The Equity Fund "S" shares returned 18.59%* to shareholders for the period,
after expenses, a figure higher than long-term historical equity return figures.
LOOKING FORWARD
We continue to believe strongly in the continued strength of the domestic
economy. Vintage Equity Fund holdings will continue to be focused on larger
capitalization companies in the growth sector of the economy. We anticipate
emphasizing the interest-sensitive and healthcare sectors. Demonstrated earnings
history and opportunities for growth fundamentally support every purchase in the
Equity Fund.
As of March 31, 2000, the portfolio was fully invested and widely diversified
with positions in some sixty different companies. The top five holdings were:
Nortel Networks (3.66% of the Fund's net assets), Texas Instruments (3.56%),
Cisco Systems (3.44%), EMC Corporation (2.99%) and Morgan Stanley Dean Witter
(2.79%)**.
[GRAPH]
* Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
**The composition of the Fund's holdings is subject to change.
The performance of the Vintage Equity Fund is measured against the S&P 500
Index, an unmanaged index generally representative of the performance of the
U.S. stock market. The index does not reflect the deduction of expenses
associated with a mutual fund, such as investment management fees. The Fund's
performance reflects the deduction of fees for these value-added services.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
EQUITY FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Common Stocks (99.35%)
Automotive (3.25%)
180,000 Ford Motor $8,268,750
130,000 General Motors 10,765,625
-------------------
19,034,375
-------------------
Banking (7.35%)
180,000 Bank of America 9,438,750
220,000 Bank of New York 9,143,750
110,000 Chase Manhattan 9,590,625
200,000 Regions Financial 4,562,500
250,000 Wells Fargo 10,234,375
-------------------
42,970,000
-------------------
Biotechnology (2.52%)
240,000 Amgen* 14,730,000
-------------------
Broadcasting (1.65%)
140,000 Clear Channel Communications* 9,668,750
-------------------
Business Services (2.04%)
80,000 American Express 11,915,000
-------------------
Computer Hardware (7.57%)
260,000 Cisco Systems, Inc.* 20,101,250
250,000 Compaq 6,656,250
140,000 EMC* 17,500,000
-------------------
44,257,500
-------------------
Computer - Software and Peripherals (3.12%)
82,500 Citrix Systems* 5,465,625
120,000 Microsoft* 12,750,000
-------------------
-------------------
18,215,625
-------------------
Consumer Goods and Services (4.17%)
200,000 Colgate Palmolive 11,275,000
200,000 McDonald's 7,512,500
100,000 Procter & Gamble 5,625,000
-------------------
24,412,500
-------------------
Diversified (3.67%)
130,000 Minnesota Mining and Manufacturing 11,513,125
200,000 Tyco International 9,975,000
-------------------
21,488,125
-------------------
Electrical & Electronic (4.46%)
100,000 General Electric 15,518,750
200,000 Honeywell 10,537,500
-------------------
26,056,250
-------------------
Energy (1.65%)
220,000 Williams 9,666,250
-------------------
Financial Services (8.92%)
150,000 Citigroup 8,896,875
150,000 Fannie Mae 8,465,625
200,000 Federal Home Loan Mortgage 8,837,500
200,000 Morgan Stanley Dean Witter 16,312,500
220,000 Paine Webber Group 9,680,000
-------------------
52,192,500
-------------------
Health Care Products and Services (2.14%)
200,000 Baxter International 12,537,500
-------------------
Home Furnishings (1.02%)
240,000 Newell Rubbermaid 5,955,000
-------------------
Industrial Goods and Services (1.62%)
150,000 United Technologies 9,478,125
-------------------
Insurance (3.49%)
125,000 American International Group 13,687,500
200,000 Lincoln National 6,700,000
-------------------
20,387,500
-------------------
Oil & Gas Exploration Products & Services (5.60%)
140,000 Apache 6,965,000
180,000 El Paso Energy 7,267,500
100,000 Exxon Mobile 7,781,250
140,000 Schlumberger 10,710,000
-------------------
32,723,750
-------------------
Paper Products (1.62%)
240,000 Georgia Pacific 9,495,000
-------------------
Pharmaceuticals (11.21%)
250,000 American Home Products 13,406,250
100,000 Bristol-Myers Squibb 5,775,000
150,000 Lilly (Eli) & Co. 9,450,000
140,000 Merck* 8,697,500
170,000 Mylan Laboratories 4,675,000
300,000 Pfizer 10,968,750
60,000 Warner Lambert 5,850,000
170,000 Watson Pharmaceuticals* 6,746,875
-------------------
65,569,375
-------------------
Photography (1.67%)
180,000 Eastman Kodak 9,776,250
-------------------
Retail - General Merchandise (3.37%)
160,000 Target 11,960,000
140,000 Walmart 7,770,000
-------------------
19,730,000
-------------------
Retail - Specialty Stores (5.15%)
200,000 Bed Bath & Beyond* 7,875,000
225,000 Home Depot 14,512,500
300,000 Walgreen 7,725,000
-------------------
30,112,500
-------------------
Semiconductors (0.68%)
30,000 Intel 3,958,125
-------------------
Technology (5.31%)
160,000 Electronic Data Systems 10,270,000
130,000 Texas Instruments 20,800,000
-------------------
31,070,000
-------------------
Telecommunications - Services and Equipment (6.10%)
100,000 Motorola 14,237,500
170,000 Nortel Networks 21,420,000
-------------------
35,657,500
-------------------
Total Common Stocks 581,057,500
-------------------
Mutual Funds (0.35%)
2,014,538 Government Assets Fund T Shares, 5.36%** 2,014,538
-------------------
Total Investments in Securities (99.70%)
(Cost $363,424,867)(a) $583,072,038
Other Assets & Liabilities (0.30%) 1,759,149
-------------------
Net Assets (100.00%) $584,831,187
===================
- ---------------
(a) Cost for federal income tax purposes is identical and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation.......$230,012,649
Unrealized Depreciation.......($10,365,478)
Net Unrealized Appreciation...$219,647,171
* Represents non-income producing securities.
** Rate shown is as of March 31, 2000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
PERFORMANCE REPORT VINTAGE MUTUAL FUNDS, INC.
THE VINTAGE AGGRESSIVE GROWTH FUND*
The Vintage Aggressive Growth Fund focuses on a broad range of available growth
companies in the medium to larger capitalization sectors. Historically, smaller
to medium size companies have acted as an excellent asset allocation complement
to the largest capitalization companies. The Vintage Aggressive Growth Fund's
performance has reflected this overall market sector relationship, providing
solid returns compared to other funds with similar investment objectives.
For the year ended March 31, 2000, the Fund produced a total return after
operating expenses of 33.51%**.
LOOKING FORWARD
The Aggressive Growth Fund ended the period with overweight positions in the
technology, finance, healthcare and energy sectors. The extreme volatility of
the NASDAQ and high valuations of the technology sector caused a wide swing in
technology weightings from a low of 30% to a high of 50% of the Fund. The
current technology sector weight is 40% with the likelihood of an increase in
that sector as valuations become relatively more attractive.
As of March 31, 2000, the Fund's top five holdings were: Microsoft (4.17% of the
Fund's net assets), Citrix Systems (2.91%), Netegrity (2.58%), American Home
Products (2.52%) and Digital Island (2.51%)***.
* Small-cap companies typically carry additional risk since smaller companies
generally have a higher risk of failure and, by definition are not as
well-established as blue-chip companies. Historically, small-company stocks have
experienced a greater degree of market volatility than stocks on average.
** Past performance is not predictive of future results. The value of shares in
the Vintage Mutual Funds will fluctuate so that the shares, when redeemed, may
be worth more or less than their original cost.
*** The composition of the Fund's holdings is subject to change.
The performance of the Vintage Aggressive Growth Fund is measured against the
S&P 500 Stock Index, the NASDAQ Composite Index and the S&P Mid Cap 400 Stock
Index, which represent the performance of the stock market as a whole,
small-capitalization stocks and small- to mid-sized companies respectively. The
indices are unmanaged and do not reflect the deduction of expenses associated
with a mutual fund, such as investment management fees. The Fund's performance
reflects the deduction of fees for these value-added services.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
AGGRESSIVE GROWTH
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Common Stocks (95.75%)
Banking (1.83%)
70,000 Bank of New York $2,909,375
-----------------
Biotechnology (2.44%)
25,000 Amgen* 1,534,375
6,000 Biomatrix* 153,000
5,000 Celera Genomics* 457,812
1,000 Corixa* 41,250
5,000 Genzyme* 250,625
15,000 PE Corp* 1,447,500
-----------------
3,884,562
-----------------
Broadcasting (1.95%)
45,000 Clear Channel Communications* 3,107,812
-----------------
Computer Hardware (4.82%)
51,000 Cisco Systems* 3,942,937
70,000 Compaq 1,863,750
20,000 Sun Microsystems* 1,874,063
-----------------
7,680,750
-----------------
Computer - Software and Peripheral (9.23%)
20,000 Broadbase Software* 1,595,000
70,000 Citrix Systems* 4,637,500
10,000 Lexmark International* 1,057,500
62,500 Microsoft* 6,640,625
10,000 Oracle* 780,625
-----------------
14,711,250
-----------------
Consumer Goods & Services (0.59%)
28,800 Clorox 936,000
-----------------
Diversified (4.31%)
45,000 Kansas City Southern 3,867,187
60,000 Tyco International 2,992,500
-----------------
6,859,687
-----------------
Energy (1.92%)
32,700 Avista 1,332,525
50,000 Kinder Morgan 1,725,000
-----------------
3,057,525
-----------------
Entertainment (0.94%)
15,000 Time Warner 1,500,000
-----------------
Financial Services (8.44%)
90,000 AXA Financial 3,228,750
45,000 Citigroup 2,669,062
65,000 Fannie Mae 3,668,437
30,000 Morgan Stanley Dean Witter 2,446,875
33,000 Southwest Securities Group 1,433,438
-----------------
13,446,562
-----------------
Health Care Products and Services (1.69%)
43,000 Baxter International 2,695,562
-----------------
Industrial Goods & Services (2.02%)
47,500 Fastenal Co. 2,274,063
15,000 United Technologies 947,813
-----------------
3,221,876
-----------------
Internet Related (12.38%)
22,700 724 Solutions* 2,826,150
65,700 Digital Island* 4,003,594
40,000 Intranet Solutions* 1,840,000
60,000 Netegrity* 4,110,000
30,000 Portal Software* 1,708,125
30,000 Real Networks* 1,708,125
10,000 Verisign* 1,495,000
25,000 Verity* 1,018,750
10,000 Vitria Technology* 1,008,125
-----------------
19,717,869
-----------------
Manufacturing (0.26%)
10,000 Parker Hannifin 413,125
-----------------
Medical Equipment & Supplies (1.85%)
50,000 Guidant* 2,940,625
-----------------
Oil & Gas Exploration Products & Services (10.57%)
20,000 Coastal 920,000
15,000 Diamond Offshore Drilling 599,063
50,000 Enron 3,743,750
35,000 Halliburton Co. 1,435,000
140,000 R&B Falcon* 2,756,250
25,000 Schlumberger 1,912,500
54,840 Transocean Sedco Forex 2,813,978
45,000 Weatherford International* 2,652,188
-----------------
16,832,729
-----------------
Paper Products (1.75%)
80,000 Mead Corp 2,795,000
-----------------
Pharmaceuticals (6.92%)
75,000 American Home Products 4,021,875
30,000 Bristol-Myers Squibb 1,732,500
49,400 Elan ADR* 2,346,500
30,000 Warner Lambert Co. 2,925,000
-----------------
11,025,875
-----------------
Retail - Specialty Stores (3.79%)
80,000 CVS Corp 3,005,000
52,000 Lowe's 3,035,500
-----------------
6,040,500
-----------------
Semiconductors (2.56%)
10,000 Conexant Systems* 710,000
35,000 Vitesse Semiconductor* 3,368,750
-----------------
4,078,750
-----------------
Technology (6.35%)
10,000 LSI Logic* 726,250
25,000 Nvidia* 2,112,109
90,000 Parametric Technologies* 1,895,625
30,000 Symbol Technologies* 2,469,375
48,500 Versata* 2,919,094
-----------------
10,122,453
-----------------
Telecommunications Services & Equipment (9.14%)
62,000 ADC Telecommunications* 3,340,250
7,500 Avenex* 1,138,125
37,500 MCI Worldcom* 1,699,219
20,000 Motorola 2,847,500
30,000 Nortel Networks 3,780,000
10,000 QUALCOMM* 1,493,125
2,000 Sycamore Networks* 258,000
-----------------
14,556,219
-----------------
Total Common Stocks 152,534,106
-----------------
Mutual Funds (2.06%)
3,273,905 Government Assets Fund T Shares, 5.36%** 3,273,905
-----------------
Total Investments in Securities (97.81%)
(Cost $124,730,317)(a) $155,808,011
Other Assets & Liabilities (2.19%) 3,490,762
-----------------
Net Assets (100.00%) $159,298,773
=================
- ---------------
(a) Cost for federal income tax purposes is identical and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized Appreciation.......$37,237,551
Unrealized Depreciation.......($6,159,857)
Net Unrealized Appreciation...$31,077,694
* Represents non-income producing securities.
** Rate shown is as of March 31, 2000.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $131,566,049 $129,324,688 $44,844,717 $52,032,900 $27,069,469
Repurchase agreements 39,516,640 41,392,411 ----- ----- -----
----------- ---------- --------- ---------- -----------
Total Investments (Cost $171,082,689; $170,717,099;
$44,844,717; $53,117,950; $27,797,444)
Total Investments 171,082,689 170,717,099 44,844,717 52,032,900 27,069,469
Interest and dividends receivable 473,758 1,545,022 337,901 796,682 366,455
Receivable from brokers for investments sold ----- ----- ----- ----- -----
Receivable for capital shares issued 106,899 1,100 ----- 4,441 485
----------- ---------- --------- --------- ---------
Total Assets 171,663,346 172,263,221 45,182,618 52,834,023 27,436,409
----------- ---------- --------- ---------- ----------
LIABILITIES:
Dividends payable 604,014 709,550 116,104 104,862 73,888
Payable to brokers for investments purchased ----- 252,300 204,970 ----- -----
Payable for capital shares redeemed 121,411 744,000 ----- 167,657 1,627
Accrued expenses and other payables:
Investment advisory fees 52,633 53,777 14,043 22,061 12,573
Administration fees 31,580 32,267 8,425 11,472 5,943
Accounting fees 4,542 4,610 1,206 1,324 686
Distribution fees ----- 95,774 2,840 ----- -----
Servicing fees ----- 75,859 8,792 ----- -----
Other 38,348 16,386 6,176 19,439 2,545
----------- ---------- --------- ---------- ---------
Total Liabilities 852,528 1,984,523 362,556 326,815 97,262
----------- ---------- --------- ---------- ---------
Net Assets 170,810,818 170,278,698 44,820,062 52,507,208 27,339,147
=========== =========== ========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 2000
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED
ASSETS ASSETS ASSETS TERM BOND BOND
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSETS:
Paid-in capital 170,811,740 170,278,698 44,820,062 54,604,388 28,130,138
Accumulated undistributed (distributions in excess of)
net investment income 15,445 ----- ----- (156,105) -----
Net unrealized appreciation on investments ----- ----- ----- (1,085,050) (727,975)
Accumulated undistributed net realized gains (losses)
on investment transactions (16,367) ----- ----- (856,025) (63,016)
---------- --------- --------- --------- -----------
=========== =========== ========== ========== ===========
Net Assets 170,810,818 170,278,698 44,820,062 52,507,208 27,339,147
=========== =========== ========== ========== ===========
Capital Shares Outstanding 5,452,868 2,867,748
========== ===========
Net asset value--offering and redemption price per share 9.63 9.53
========== ===========
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $91,702,785 $7,370,142
=========== ==========
Shares outstanding, $.001 par value 91,702,785 7,370,142
=========== ==========
Net asset value--offering and redemption price per share $1.00 $1.00
=========== ==========
PRICING OF S2 SHARES
Net assets applicable to S2 Shares outstanding $ 8,639,185
===========
Shares outstanding, $.001 par value 8,639,185
===========
Net asset value--offering and redemption price per share $1.00
===========
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $170,810,818 $31,618,958 $11,325,572
============ =========== ===========
Shares outstanding, $.001 par value 170,827,331 31,618,958 11,325,572
============ =========== ===========
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 $38,317,770 $26,124,348
=========== ===========
Shares outstanding, $.001 par value 38,317,770 26,124,348
=========== ===========
Net asset value--offering and redemption price per share $1.00 $1.00
=========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
MARCH 31, 2000
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value $109,959,454 $48,123,486 $97,306,614 $583,072,038 $155,808,011
Repurchase agreements ----- ----- ----- ----- -----
Total Investments (Cost $113,018,874; $48,275,717; ------------ ----------- ----------- ------------ ------------
$79,455,439;$363,424,867; $124,730,317)
Total Investments 109,959,454 48,123,486 97,306,614 583,072,038 155,808,011
Interest and dividends receivable 1,399,521 712,394 554,454 402,979 31,661
Receivable from brokers for investments sold ----- ----- ----- 6,346,551 6,530,190
Receivable for capital shares issued 37,963 ----- 19,691 660,138 1,800,683
------------- ----------- ---------- ----------- -----------
Total Assets 111,396,938 48,835,880 97,880,759 590,481,706 164,170,545
------------- ----------- ---------- ----------- -----------
LIABILITIES:
Dividends payable 503,723 148,054 6,416 ----- -----
Payable to brokers for investments purchased 1,208,125 ----- 852,050 3,543,950 4,336,012
Payable for capital shares redeemed 10,805 8,000 181,040 1,474,984 300,704
Accrued expenses and other payables:
Investment Advisory fees 55,005 20,629 60,703 358,551 130,056
Administration fees 23,836 10,727 21,044 124,297 35,594
Accounting fees 2,750 1,238 2,428 14,342 4,107
Distribution fees ----- ----- ----- ----- -----
Servicing Fees ----- ----- ----- 66,424 -----
Other 34,461 30,980 69,286 67,971 65,299
---------- --------- --------- --------- ---------
Total Liabilities 1,910,705 219,628 1,192,967 5,650,519 4,871,772
---------- --------- --------- --------- ---------
Net Assets 109,486,233 48,616,252 96,687,792 584,831,187 159,298,773
=========== ========== ========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000
<TABLE>
<CAPTION>
MUNICIPAL AGGRESSIVE
INCOME BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND FUND
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSETS:
Paid-in capital 115,313,154 48,945,419 74,061,773 321,952,393 103,180,096
Accumulated undistributed (distributions in excess of)
net investment income (355,692) ----- ----- ----- -----
Net unrealized appreciation on investments (3,059,420) (152,231) 17,851,175 219,647,171 31,077,694
Accumulated undistributed net realized gains (losses)
on investment transactions (2,411,809) (176,936) 4,774,844 43,231,623 25,040,983
---------- --------- --------- --------- -----------
============ =========== =========== ============ =============
Net Assets $109,486,233 $48,616,252 $96,687,792 $584,831,187 $159,298,773
============ =========== =========== ============ =============
Capital Shares Outstanding 11,390,172 4,745,912 5,831,188 7,776,337
============ =========== =========== =============
Net asset value--offering and redemption price per share $9.61 $10.24 $16.58 $20.49
============ =========== =========== =============
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $325,035,205
============
Shares outstanding, $.001 par value 13,962,708
============
Net asset value--offering and redemption price per share $23.28
============
PRICING OF S2 SHARES
Net assets applicable to S2 Shares outstanding
Shares outstanding, $.001 par value
Net asset value--offering and redemption price per share
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $259,795,982
============
Shares outstanding, $.001 par value 11,109,643
============
Net asset value--offering and redemption price per share $23.28
============
PRICING OF I SHARES
Net assets applicable to I Shares outstanding
Shares outstanding, $.001 par value
Net asset value--offering and redemption price per share
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
GOVERNMENT LIQUID MUNICIPAL LIMITED BOND
ASSETS ASSETS ASSETS TERM BOND FUND
FUND FUND FUND FUND
---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $9,534,386 $9,558,465 $1,550,512 $3,218,176 $1,822,875
Dividend income ----- ----- ----- ----- -----
--------------- ---------------- ----------- ------------ -----------
Total Income 9,534,386 9,558,465 1,550,512 3,218,176 1,822,875
--------------- ---------------- ----------- ------------ -----------
EXPENSES: (Note 4)
Investment advisory fees 718,168 612,491 153,915 267,351 142,950
Administration fees 377,038 367,495 92,349 139,023 67,576
Distribution and shareholder service fees S Shares ----- 589,897 29,770 ----- -----
Distribution and shareholder service fees S2 Shares ----- 42,415 ----- ----- -----
Distribution and shareholder service fees T Shares ----- 58,150 18,052 ----- -----
Custody fees 13,392 41,283 16,585 6,956 7,959
Accounting fees 53,863 52,499 13,193 16,041 7,797
Legal fees 6,254 5,972 1,770 2,086 899
Audit fees 10,455 10,668 2,788 3,075 1,592
Directors' fees 10,858 10,853 2,866 3,299 1,635
Transfer agent fees 79,206 54,081 17,223 33,852 15,882
Registration and filing fees 4,665 14,298 3,233 1,200 1,915
Printing fees 11,140 21,500 6,888 3,916 1,634
Other 14,447 50,775 16,953 14,825 12,240
--------------- ---------------- ------------ ------------- ----------
Total Expenses 1,299,486 1,932,377 375,585 491,624 262,079
Less: Expenses voluntarily reduced/waived (89,771) ----- (2,231) ----- -----
--------------- ---------------- ------------ ------------- ----------
Net Expenses 1,209,715 1,932,377 373,354 491,624 262,079
--------------- ---------------- ------------ ------------- ----------
Net Investment Income (Loss) 8,324,671 7,626,088 1,177,158 2,726,552 1,560,796
--------------- ---------------- ------------ ------------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment transactions ----- ----- ----- (687,447) (56,854)
Net change in unrealized appreciation (depreciation)
from investments ----- ----- ----- (1,319,310) (876,730)
--------------- ---------------- ------------ ------------- -----------
Net realized and unrealized gains (losses) from investments ----- ----- ----- (2,006,757) (933,584)
--------------- ---------------- ------------ ------------- -----------
--------------- ---------------- ------------ ------------- -----------
Change in net assets resulting from operations $8,324,671 $7,626,088 $1,177,158 $719,795 $627,212
=============== ================ ============ ============= ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
INCOME MUNICIPAL AGGRESSIVE
FUND BOND BALANCED EQUITY GROWTH
FUND FUND FUND FUND
---------- ---------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................................... $7,224,911 $2,425,864 $2,246,267 $271,407 $202,720
Dividend income.......................................... ----- ----- 482,976 5,546,067 728,267
---------- ---------- ----------- ------------ ------------
Total Income 7,224,911 2,425,864 2,729,243 5,817,474 930,987
---------- ---------- ----------- ------------ ------------
EXPENSES: (Note 4)
Investment advisory fees................................. 629,653 251,596 691,151 4,137,564 1,288,587
Administration fees...................................... 272,850 130,830 239,600 1,434,358 352,666
Distribution and adminstrative service fees S Shares..... ----- ----- ----- 712,280 -----
Distribution and adminstrative service fees S2 Shares.... ----- ----- ----- ----- -----
Distribution and adminstrative service fees T Shares..... ----- ----- ----- ----- -----
Custody fees............................................. 9,761 7,241 11,738 20,131 13,472
Accounting fees.......................................... 31,482 15,096 27,646 165,502 40,692
Legal fees............................................... 3,871 1,902 3,315 20,403 4,687
Audit fees............................................... 6,386 2,876 5,637 33,303 9,519
Director's fees.......................................... 6,552 3,094 5,686 26,812 8,632
Transfer Agent fees...................................... 31,923 27,826 79,431 237,853 88,782
Registration and filing fees............................. 1,312 1,624 2,726 11,492 4,663
Printing fees............................................ 7,127 3,530 6,038 37,389 8,518
Other fees............................................... 37,237 17,008 28,686 6,923 14,852
---------- ---------- ----------- ------------ ------------
Total Expenses 1,038,154 462,623 1,101,654 6,844,010 1,835,070
Less: Expenses voluntarily reduced/waived............... ----- ----- ----- ----- -----
---------- ---------- ----------- ------------ ------------
Net Expenses............................................. 1,038,154 462,623 1,101,654 6,844,010 1,835,070
---------- ---------- ----------- ------------ ------------
Net Investment Income (Loss)............................. 6,186,757 1,963,241 1,627,589 (1,026,536) (904,083)
---------- ---------- ----------- ------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions............................... (626,345) (176,936) 11,038,633 87,314,278 38,047,044
Net change in unrealized appreciation (depreciation)
from investments...................................... (3,247,808) (1,735,187) 829,043 8,564,972 3,313,722
---------- ---------- ------------ ------------ ----------
Net realized and unrealized gains
(losses) from investments............................. (3,874,153) (1,912,123) 11,867,676 95,879,250 41,360,766
---------- ---------- ------------ ------------ ------------
Change in net assets resulting from operations........... $2,312,604 $51,118 $13,495,265 $94,852,714 $40,456,683
========== ========== ============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GOVERNMENT ASSETS FUND LIQUID ASSETS FUND
--------------------------------------- ---------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999
--------------------------------------- ---------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $8,324,671 $6,698,447 $7,626,088 $5,651,439
Net realized gains/(losses) from investment
transactions ------ ------ ------ ------
Net change in unrealized appreciation/(depreciation)
from investments ------ ------ ------ ------
Change in net assets resulting from
------------ ----------- ------------ -----------
operations 8,324,671 6,698,447 7,626,088 5,651,439
------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (3,717,166) (3,238,515)
S2 Shares ------ ------ (460,850) (372,466)
T Shares (8,324,671) (6,695,405) (1,772,881) (1,276,647)
I Shares ------ ------ (1,675,191) (763,811)
From net realized gains
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
Change in net assets from shareholder
------------ ----------- ------------ -----------
distributions (8,324,671) (6,695,405) (7,626,088) (5,651,439)
------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Issued:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 538,419,394 506,680,611
S2 Shares ------ ------ 111,866,302 148,619,946
T Shares 846,450,296 588,440,372 182,194,113 193,368,939
I Shares ------ ------ 199,538,337 64,949,688
Reinvestments:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 32 23,684
S2 Shares ------ ------ 16,925 ------
T Shares 1,845,143 1,516,951 371,495 212,019
I Shares ------ ------ 431,555 115,123
Redemptions:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (524,059,287) (498,876,025)
S2 Shares ------ ------ (111,495,909) (145,821,496)
T Shares (827,490,745)(595,083,750) (184,619,833) (176,055,191)
I Shares ------ ------ (178,403,349) (62,042,443)
------------ ----------- ------------ -----------
Change in net assets from capital transactions 20,804,694 (5,126,427) 34,259,775 31,174,855
------------ ----------- ------------ -----------
Change in net assets $20,804,694 ($5,123,385) $34,259,775 $31,174,855
NET ASSETS:
Beginning of year 150,006,124 155,129,509 136,018,923 104,844,068
------------ ----------- ------------ ------------
End of year $170,810,818 $150,006,124 $170,278,698 $136,018,923
============= ============ ============ ============
SHARE TRANSACTIONS:
Issued:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 538,419,394 506,680,611
S2 Shares ------ ------ 111,866,302 148,619,946
T Shares 846,450,296 588,440,372 182,194,113 193,368,939
I Shares ------ ------ 199,538,337 64,949,688
Reinvestments:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ 32 23,684
S2 Shares ------ ------ 16,925 ------
T Shares 1,845,143 1,516,951 371,495 212,019
I Shares ------ ------ 431,555 115,123
Redemptions:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ (524,059,287) (498,876,025)
S2 Shares ------ ------ (111,495,909) (145,821,496)
T Shares (827,490,745)(595,083,750) (184,619,833) (176,055,191)
I Shares ------ ------ (178,403,349) (62,042,443)
------------ ----------- ------------ -----------
Change In Shares 20,804,694 (5,126,427) 34,259,775 31,174,855
============ =========== ============ ===========
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL ASSETS FUND LIMITED TERM BOND FUND
--------------------------------------- ------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999
-------------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $1,177,158 $1,090,382 $2,726,552 $2,548,564
Net realized gains/(losses) from investment transactions ------ ------ 687,447 41,156
Net change in unrealized appreciation/(depreciation) from investments ------ ------ (1,319,310) (40,683)
---------------- -------------- --------------- --------------
Change in net assets resulting from operations 1,177,158 1,090,382 719,795 2,549,037
---------------- -------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ (2,726,552) (2,542,863)
S Shares (178,816) (176,946) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (316,022) (338,594) ------ ------
I Shares (682,320) (574,842) ------ ------
From net realized gains
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
---------------- -------------- --------------- --------------
Change in net assets from shareholder distributions (1,177,158) (1,090,382) (2,726,552) (2,542,863)
---------------- -------------- --------------- --------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 15,410,324 33,194,746
S Shares 39,086,068 39,656,976 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 32,180,360 44,999,698 ------ ------
I Shares 88,123,275 84,067,686 ------ ------
REINVESTMENTS:
Capital Shares ------ ------ 1,748,538 1,840,120
S Shares 5,130 ------ ------ ------
T Shares 27,067 5,553 ------ ------
I Shares 6,053 8,549 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (18,650,112) (16,812,474)
S Shares (39,615,509) (38,864,113) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (35,830,952) (42,060,727) ------ ------
I Shares (84,409,622) (81,681,844) ------ ------
---------------- -------------- --------------- --------------
Change in net assets from capital transactions (428,130) 6,131,778 (1,491,250) 18,222,392
---------------- -------------- --------------- --------------
Change in net assets (428,130) 6,131,778 (3,498,007) 18,228,566
NET ASSETS:
Beginning of year 45,248,192 39,116,414 56,005,215 37,776,649
================ ============== =============== ==============
End of year $44,820,062 $45,248,192 $52,507,208 $56,005,215
================ ============== =============== ==============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 1,572,816 3,300,867
S Shares 39,086,068 39,656,976 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 32,180,360 44,999,698 ------ ------
I Shares 88,123,275 84,067,686 ------ ------
REINVESTMENTS:
Capital Shares ------ ------ 178,632 182,981
S Shares 5,130 ----- ------ ------
T Shares 27,067 5,553 ------ ------
I Shares 6,053 8,549 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (1,896,841) (1,667,952)
S Shares (39,615,134) (38,864,113) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (35,830,952) (42,060,727) ------ ------
I Shares (84,409,622) (81,681,844) ------ ------
================ ============== =============== ==============
Change In Shares (428,130) 6,131,778 (145,393) 1,815,896
================ ============== =============== ==============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
BOND FUND INCOME FUND
--------------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999
-------------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $1,560,796 $990,434 $6,186,757 $5,231,869
Net realized gains/(losses) from investment transactions (56,854) 9,339 (626,345) 646,775
Net change in unrealized appreciation/(depreciation) from investments (876,730) (26,406) (3,247,808) (1,201,868)
-------------- ------------ --------------- -------------
Change in net assets resulting from operations 627,212 973,367 2,312,604 4,676,776
-------------- ------------ --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (1,560,796) (997,929) (6,186,757) (5,331,510)*
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
From net realized gains
Capital Shares (1,197) (45,854) ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
-------------- ------------ --------------- -------------
Change in net assets from shareholder distributions (1,561,993) (1,043,783) (6,186,757) (5,331,510)
-------------- ------------ --------------- -------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 15,103,396 18,750,018 35,519,204 27,829,387
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 898,397 648,234 767,426 707,512
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (9,711,365) (4,557,532) (23,266,819) (32,145,684)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
-------------- ------------ --------------- -------------
Change in net assets from capital transactions 6,290,428 14,840,720 13,019,811 (3,608,785)
-------------- ------------ --------------- -------------
Change in net assets 5,355,647 14,770,304 9,145,658 (4,263,519)
NET ASSETS:
Beginning of year 21,983,500 7,213,196 100,340,575 104,604,094
============== ============ =============== =============
End of year $27,339,147 $21,983,500 $109,486,233 $100,340,575
============== ============ =============== =============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 1,565,299 1,883,976 3,656,216 2,745,993
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 93,513 65,135 79,146 69,812
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (1,015,918) (455,900) (2,400,241) (3,182,951)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
============== ============ =============== =============
Change In Shares 642,894 1,493,211 1,335,121 (367,146)
============== ============ =============== =============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
MUNICIPAL BOND FUND BALANCED FUND
--------------------------------------- ------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999
-------------------- ----------------- -------------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $1,963,241 $1,896,320 $1,627,589 $1,114,067
Net realized gains/(losses) from investment transactions (176,936) 219,081 11,038,633 3,463,631
Net change in unrealized appreciation/(depreciation) from investment(1,735,187) 177,852 829,043 4,347,436
-------------- -------------- -------------- --------------
Change in net assets resulting from operations 51,118 2,293,253 13,495,265 8,925,134
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares (1,963,241) (1,896,049) (1,627,589) (1,108,471)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
From net realized gains
Capital Shares (148,801) (70,290) (8,381,080) (2,937,377)
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
-------------- -------------- -------------- --------------
Change in net assets from shareholder distributions (2,112,042) (1,966,339) (10,008,669) (4,045,848)
-------------- -------------- -------------- --------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 12,207,058 10,367,989 24,251,204 33,056,168
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 274,138 297,011 10,137,234 3,863,015
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (11,754,113) (9,323,485) (26,611,358) (19,777,192)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
-------------- -------------- -------------- --------------
Change in net assets from capital transactions 727,083 1,341,515 7,777,080 17,141,991
-------------- -------------- -------------- --------------
Change in net assets (1,333,841) 1,668,429 11,263,676 22,021,277
NET ASSETS:
Beginning of year 49,950,093 48,281,664 85,424,116 63,402,839
============== ============== ============== ==============
End of year $48,616,252 $49,950,093 $96,687,792 $85,424,116
============== ============== ============== ==============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 1,180,486 970,809 1,508,292 2,178,133
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 26,472 27,811 645,953 254,541
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (1,142,051) (870,874) (1,659,823) (1,307,414)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
============== ============== ============== ==============
Change In Shares 64,907 127,746 494,422 1,125,260
============== ============== ============== ==============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
EQUITY FUND AGGRESSIVE GROWTH FUND
--------------------------------------- ------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
MARCH 31, 2000 MARCH 31, 1999 MARCH 31, 2000 MARCH 31, 1999
-------------------- ----------------- -------------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) (1,026,536) (948,314) (904,083) (737,349)
Net realized gains/(losses) from investment transactions 87,314,278 56,474,170 38,047,044 11,696,663
Net change in unrealized appreciation/(depreciation) from investm 8,564,972 17,129,688 3,313,722 (9,473)
--------------- --------------- --------------- ---------------
Change in net assets resulting from operations 94,852,714 72,655,544 40,456,683 10,949,841
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Capital Shares ------ ------ ------ ------
S Shares ------ (59,830) ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ (148,763) ------ ------
I Shares ------ ------ ------ ------
From net realized gains
Capital Shares ------ ------ (18,489,048) (6,116,966)
S Shares (43,929,332) (12,633,245) ------ ------
T Shares (38,814,887) (15,888,358) ------ ------
--------------- --------------- --------------- ---------------
Change in net assets from shareholder distributions (82,744,219) (28,730,196) (18,489,048) (6,116,966)
--------------- --------------- --------------- ---------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 67,283,603 33,773,139
S Shares 94,744,150 80,875,903 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 59,037,865 52,395,875 ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares ------ ------ 8,377,091 2,843,899
S Shares 42,158,486 12,006,072 ------ ------
T Shares 11,202,725 6,539,800 ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (59,881,586) (21,275,145)
S Shares (71,933,641) (54,985,567) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (96,497,623) (78,764,367) ------ ------
I Shares ------ ------ ------ ------
--------------- --------------- --------------- ---------------
Change in net assets from capital transactions (38,711,962) 18,067,716 15,779,108 15,341,893
--------------- --------------- --------------- ---------------
Change in net assets $50,820,457 $61,993,064 $37,746,743 $20,174,768
NET ASSETS:
Beginning of year 534,010,730 472,017,666 121,552,030 101,377,262
=============== =============== =============== ===============
End of year $584,831,187 $534,010,730 $159,298,773 $121,552,030
=============== =============== =============== ===============
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ 3,629,932 2,025,571
S Shares 4,075,596 3,783,085 ------ ------
S2 Shares ------ ------ ------ ------
T Shares 2,558,091 2,524,695 ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares ------ ------ 481,444 170,565
S Shares 1,919,780 590,067 ------ ------
T Shares 508,291 320,512 ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares ------ ------ (3,229,283) (1,269,959)
S Shares (3,105,795) (2,651,754) ------ ------
S2 Shares ------ ------ ------ ------
T Shares (4,182,033) (3,694,248) ------ ------
I Shares ------ ------ ------ ------
=============== =============== =============== ===============
Change In Shares 1,773,930 872,357 882,093 926,177
=============== =============== =============== ===============
* Includes $99,641 of distribution in excess of net investment income for the Income Fund for the year ended March 31, 1999.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 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 four and three classes of
shares, respectively. S Shares are offered to customers of banks. S Shares are
normally offered through financial institutions providing automatic "sweep"
investment programs to their own customers. T Shares may be purchased only by
financial institutions acting on their own behalf or on behalf of certain
customers' accounts. I Shares may be purchased by individual and institutional
investors directly from the Fund's Distributor. Liquid Assets Fund also offers
S2 Shares through financial institutions providing automatic "sweep" investment
programs to their own customers. All classes of shares accrue daily dividends in
the same manner except each class bears separate distribution and/or shareholder
servicing fees.
The Vintage Equity Fund offers two classes of shares. T Shares of the Vintage
Equity Fund are offered solely to fiduciary accounts of AMCORE Investment Group,
N. A., over which AMCORE Investment Group, N. A., exercises investment
discretion. The Vintage Equity Fund also offers S Shares which accrue daily
dividends in the same manner as T Shares except each class bears separate
distribution and/or shareholder administrative servicing fees.
Each class of shares has equal rights to earnings, assets, and voting privileges
except each class bears different distribution expenses. Each class of shares
has exclusive voting rights on matters affecting only that class. Income,
expenses (other than expenses attributable to a specific class), and realized
and unrealized gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Fund in the preparation of the financial statements. The policies are in
conformity with accounting principles generally accepted in the United States.
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 advisor, Investors Management
Group, ("IMG"), deems creditworthy under guidelines approved by the Fund's Board
of Directors, subject to the seller's agreement to repurchase such securities at
a mutually agreed-upon date and price. An independent custodian must receive
delivery of the underlying securities. The market value of these securities
(including accrued interest) on acquisition date is required to be an amount
equal to 102% of the resale price, and will not be less than 100% of the resale
price over the term of the agreement. The repurchase price generally equals the
price paid plus interest negotiated on the basis of current short-term rates,
which may be more or less than the rate on the underlying portfolio securities.
The seller, under an agreement to repurchase, is required to maintain, with the
Fund's custodian, the value of collateral held pursuant to the agreement at not
less than the repurchase price (including accrued interest). Securities subject
to repurchase agreements are held by the Fund's custodian, another qualified
custodian or in the Federal Reserve/Treasury book-entry system.
LOAN CERTIFICATES
The Liquid Assets Fund may invest in FmHA Guaranteed Loan Certificates which
represent interests in the guaranteed portion of Farmer's Home Administration
("FmHA") loans issued by one or more guaranteed loan trusts subject to
repurchase on no more than five business days' written notice. The Loan
Certificates are diversified through limitations on certificates sold by any one
individual bank.
TRUST CERTIFICATES
The Liquid Assets Fund may invest in U. S. Government Guaranteed Student Loans
(the Trust) which represent interests in student loans sold by certain Iowa
banks subject to repurchase on no more than seven days' written notice. The
Trust and the Trust Certificates are diversified through a limitation on
certificates sold by any individual bank. Each individual bank may not sell more
than five percent of the outstanding Trust Certificates.
SECURITIES PURCHASED ON A WHEN-ISSUED OF DELAYED-DELIVERY BASIS
Each fund may purchase securities on a when-issued or delayed-delivery basis.
When-issued securities are securities purchased with delivery to occur at a
later date at a stated price and/or yield, thereby involving the risk that the
price and/or yield obtained may be more or less than those available in the
market when delivery takes place. At the time a Fund makes commitment to
purchase a security on a when-issued basis, the Fund records the transaction and
reflects the value of the security in determining net asset value. A segregated
account is established and the Fund maintains cash and marketable securities at
least equal in value to commitments for when-issued securities.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly for the
Government Assets Fund, the Liquid Assets Fund and the Municipal Assets Fund.
Dividends from net investment income are declared and paid monthly for the
Vintage Limited Term Bond Fund, the Vintage Bond Fund, the Vintage Income Fund
and the Vintage Municipal Bond Fund. Dividends from net investment income are
declared and paid quarterly for the Vintage Balanced Fund, the Vintage Equity
Fund and the Vintage Aggressive Growth Fund. Distributable net realized capital
gains, if any, are declared and distributed at least annually for each of the
Funds.
FEDERAL TAXES
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute taxable
income to shareholders in amounts that will avoid or minimize federal income or
excise taxes of the Fund. Net investment income and net realized gains (losses)
for the Funds may differ for financial statement and tax purposes. The character
of distributions made during the year from net investment income or net realized
gains may differ from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the year that the income or
realized gains (losses) were recorded by the Funds.
EXPENSES
Expenses directly related to one of the Funds are charged to that Fund. Expenses
relating to the Funds collectively are prorated to the Funds on the basis of
each Fund's relative net assets.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the year
ended March 31, 2000 are as follows:
Proceeds
Purchases from Sales
Limited Term Bond Fund......................$19,544,984 $22,383,231
Bond Fund...................................$12,810,257 $7,306,354
Income Fund.................................$37,538,256 $27,964,285
Municipal Bond Fund.........................$13,110,310 $12,336,533
Balanced Fund...............................$56,309,306 $58,494,696
Equity Fund................................$485,716,148 $532,632,210
Aggressive Growth Fund............... .....$205,327,335 $212,532,124
4........RELATED PARTY TRANSACTIONS:
Under the terms of its Investment Advisory Agreement, Investors Management Group
(IMG), a wholly owned subsidiary of AMCORE Financial, Inc., is entitled to
receive fees computed daily on a percentage of the average daily net assets of
each fund as follows:
Government Assets Fund 0.40 percent
Liquid Assets Fund 0.35 percent
Municipal Assets Fund 0.35 percent
Vintage Limited Term Bond Fund 0.50 percent
Vintage Bond Fund 0.55 percent
Vintage Income Fund 0.60 percent
Vintage Municipal Bond Fund 0.50 percent
Vintage Balanced Fund 0.75 percent
Vintage Equity Fund 0.75 percent
Vintage Aggressive Growth Fund 0.95 percent
IMG voluntarily 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. For the year ended March
31, 2000, IMG voluntarily waived administrative fees of $2,231 for the Municipal
Assets Fund.
The Funds have adopted an Administrative Services Plan (the "Services Plan")
pursuant to which each Fund is authorized to pay compensation to banks and other
financial institutions (each a "Participating Organization"), which may include
AMCORE Financial, Inc., its correspondent and affiliated banks, which agree to
provide certain 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. At present, the Funds pay servicing fees as
follows: 0.25 percent on S Shares of the Liquid Assets, Municipal Assets, and
Equity Funds and 0.15 percent on T Shares of the Liquid Assets and Municipal
Assets Funds. During the year ended March 31, 2000, AMCORE Financial, Inc.
received $60,710, $18,511, and $703,296 from the Liquid Assets Fund, the
Municipal Assets Fund, and the Vintage Equity Fund, respectively.
BISYS Fund Services Limited Partnership serves as distributor to the Fund
pursuant to a Distribution Agreement. The Distributor receives no compensation
under the Distribution Agrement with the Fund, but may receive compensation
under a Distribution and Shareholder Service Plan (the "Plan") adopted pursuant
to Rule 12b-1 under the 1940 Act under which the Funds are authorized to pay the
Distributor for payments it makes to Participating Organizations. As authorized
by the Plan, the Distributor will enter into Shareholder Agreements with
Participating Organizations, including AMCORE Financial, Inc., or its
affiliates, pursuant to which the Participating Organization agrees to provide
certain administrative and shareholder support services in connection with
Shares of a Fund purchased and held by Customers of the Participating
Organization. The Distributor will be compensated by a Fund up to the amount of
any payments it makes to Participating Organizations under the Rule 12b-1
Agreement. The maximum fee is 0.50 percent on S Shares of the Liquid Assets Fund
and 0.25 percent on all other Classes and Funds. Currently, such fees are
limited to 0.40 percent for S Shares of the Liquid Assets Fund, 0.15 percent for
S2 Shares of the Liquid Assets Fund, 0.15 percent for S Shares of the Municipal
Assets Fund and 0.00 percent for all other Classes and Funds. However, IMG as
Adviser and Administrator of the Fund may in its sole discretion make payments
to the Distributor to supplement shareholder fees paid by the Fund up to the
maximum fee approved by the Plan without further notice to shareholders and at
no cost to the Fund.
IMG also serves as the Fund's transfer agent to certain classes of the
Government Assets, Liquid Assets and Municipal Assets Funds, pursuant to a
Transfer Agency Agreement with the Funds and receives a fee for such services.
BISYS Fund Services, Inc., ("BISYS") serves as transfer agent to the other
classes and Funds pursuant to a Transfer Agency Agreement with the Funds and
receives a fee for such services. IMG also provides fund accounting services for
the Funds pursuant to a Fund Accounting Agreement and receives a fee of 0.03
percent of the average daily net assets of each Fund for such services.
5. FEDERAL INCOME TAXES:
For federal income tax purposes, the following Funds have capital loss
carryforwards as of March 31, 2000, which are available to offset future capital
gains, if any:
Amount Expires
Government Assets Fund $ 16,000 2001-2002
Limited Term Bond Fund $ 202,000 2004-2008
Bond Fund $ 34,000 2008
Income Fund $ 1,900,000 2003-2008
Municipal Bond Fund $ 104,000 2008
At March 31, 2000, the following Funds had deferred capital losses occurring
subsequent to October 31, 1999. For tax purposes, such losses will be reflected
in the year ending March 31, 2001:
Limited Term Bond Fund $ 590,000
Bond Fund $ 27,000
Income Fund $ 440,000
Municipal Bond Fund $ 73,000
6. FEDERAL INCOME TAX INFORMATION:
For the taxable year ended March 31, 2000, 17.7% of ordinary income dividends
paid by the Balanced Fund qualifies for the dividends received deduction
available to corporations. During the year ended March 31, 2000, the Municipal
Bond Fund and Municipal Assets Fund declared $2,112,042 and $1,177,158,
respectively, of tax-exempt income distributions.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES: DIVIDENDS & DISTRIBUTIONS:
-------------------------------------------------- ----------------------------------
TOTAL
NAV NET NET REALIZED/ TOTAL FROM FROM NET FROM NET DIVIDENDS
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT REALIZED AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ------ -------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT ASSETS FUND
Year Ended March 31, 2000 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1998 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1997 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1996 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
LIQUID ASSETS FUND "S" SHARES
Year Ended March 31, 2000 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Year Ended March 31, 1999 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Nine Months Ended March 31, 1998 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1997 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1996 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended June 30, 1995 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
LIQUID ASSETS FUND "S2" SHARES
Year Ended March 31, 2000 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Year Ended March 31, 1999 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
Nine Months Ended March 31, 1998 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
February 27, 1997 to June 30, 1997* $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
LIQUID ASSETS FUND "T" SHARES
Year Ended March 31, 2000 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Nine Months Ended March 31, 1998 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
January 2, 1997 to June 30, 1997* $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
LIQUID ASSETS FUND "I" SHARES
Year Ended March 31, 2000 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Year Ended March 31, 1999 $1.00 0.05 0.00 0.05 (0.05) 0.00 (0.05)
Nine Months Ended March 31, 1998 $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
October 29, 1996 to June 30, 1997* $1.00 0.04 0.00 0.04 (0.04) 0.00 (0.04)
MUNICIPAL ASSETS FUND "S" SHARES
Year Ended March 31, 2000 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended March 31, 1999 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Nine Months Ended March 31, 1998 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
Year Ended June 30, 1997 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1996 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended June 30, 1995 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
MUNICIPAL ASSETS FUND "T" SHARES
Year Ended March 31, 2000 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended March 31, 1999 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Nine Months Ended March 31, 1998 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
January 2, 1997 to June 30, 1997* $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
MUNICIPAL ASSETS FUND "I" SHARES
Year Ended March 31, 2000 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Year Ended March 31, 1999 $1.00 0.03 0.00 0.03 (0.03) 0.00 (0.03)
Nine Months Ended March 31, 1998 $1.00 0.02 0.00 0.02 (0.02) 0.00 (0.02)
March 27, 1997 to June 30, 1997* $1.00 0.01 0.00 0.01 (0.01) 0.00 (0.01)
LIMITED TERM BOND FUND
Year Ended March 31, 2000 $10.00 0.50 (0.37) 0.13 (0.50) 0.00 (0.50)
Year Ended March 31, 1999 $9.99 0.49 0.00 0.49 (0.48) 0.00 (0.48)
Year Ended March 31, 1998 $9.69 0.46 0.35 0.81 (0.51)(c) 0.00 (0.51)
Year Ended March 31, 1997 $9.89 0.50 (0.20) 0.30 (0.50) 0.00 (0.50)
June 15, 1995 to March 31, 1996* $10.00 0.44 (0.11) 0.33 (0.43) (0.01) (0.44)
</TABLE>
- ----------------
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized
(b) Annualized
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
--------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF RATIO OF NET
NAV NET ASSETS EXPENSES TO INVESTMENT EXPENSES TO INVESTMENT
END TOTAL END OF PERIOD AVERAGE INCOME TO AVERAGE INCOME TO PORTFOLIO
OF PERIOD RETURN (000 OMITTED) NET ASSETS AVERAGE NET ASSETS NET ASSETS** AVERAGE NET ASSETS** TURNOVER
--------- ------ ------------- ----------- ------------------ ------------ -------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$1.00 4.75% $170,811 0.68% 4.65% 0.73% 4.60%
$1.00 4.61% $150,006 0.73% 4.49% 0.76% 4.46%
$1.00 4.72% $155,130 0.73% 4.79% 0.98% 4.54%
$1.00 4.62% $158,698 0.76% 4.53% 1.01% 4.28%
$1.00 5.24% $153,836 0.54% 5.08% 0.72% 4.90%
$1.00 4.18% $91,703 1.36% 4.11% ----- -----
$1.00 4.18% $77,343 1.34% 4.08% ----- -----
$1.00 3.43% (a) $69,514 1.20% (b) 4.57% (b) ----- -----
$1.00 4.46% $60,663 1.20% 4.46% ----- -----
$1.00 4.68% $179,633 1.20% 4.68% ----- -----
$1.00 4.66% $167,085 1.20% 4.66% ----- -----
$1.00 4.44% $8,639 1.11% 4.36% ----- -----
$1.00 4.44% $8,252 1.09% 4.32% ----- -----
$1.00 3.68% (a) $5,453 0.87% (b) 4.91% (b) ----- -----
$1.00 1.66% (a) $1,773 0.85% (b) 4.79% (b) 0.95% 4.69%
$1.00 4.70% $31,619 0.86% 4.59% ----- -----
$1.00 4.70% $33,673 0.84% 4.54% ----- -----
$1.00 3.81% (a) $16,147 0.70% (b) 5.07% (b) ----- -----
$1.00 2.51% (a) $17,859 0.70% (b) 4.96% (b) ----- -----
$1.00 4.86% $38,318 0.71% 4.82% ----- -----
$1.00 4.86% $16,751 0.69% 4.67% ----- -----
$1.00 3.98% (a) $13,729 0.47% (b) 5.31% (b) ----- -----
$1.00 3.51% (a) $2,356 0.45% (b) 5.19% (b) ----- -----
$1.00 2.43% $7,370 1.14% 2.41% 1.15% 2.40%
$1.00 2.47% $7,894 1.12% 2.41% 1.19% 2.34%
$1.00 2.13% (a) $7,102 0.94% (b) 2.84% (b) ----- -----
$1.00 2.90% $4,664 0.93% 2.90% 1.15% 2.68%
$1.00 2.64% $10,146 1.48% 2.64% ----- -----
$1.00 2.53% $16,130 1.38% 2.53% ----- -----
$1.00 2.68% $11,326 0.89% 2.63% 0.90% 2.63%
$1.00 2.73% $14,949 0.87% 2.66% 0.94% 2.59%
$1.00 2.31% (a) $12,005 0.69% (b) 3.09% (b) ----- -----
$1.00 1.61% (a) $25,036 0.66% (b) 3.17% (b) 0.90% 2.93%
$1.00 2.84% $26,124 0.74% 2.79% 0.75% 2.79%
$1.00 2.88% $22,405 0.72% 2.81% 0.79% 2.74%
$1.00 2.49% (a) $20,010 0.46% (b) 3.32% (b) ----- -----
$1.00 1.20% (a) $7 0.41% (b) 3.42% (b) 0.65% 3.18%
$9.63 1.38% $52,507 0.92% 5.11% ----- ----- 41.58%
$10.00 5.01% $56,005 1.05% 4.89% ----- ----- 31.08%
$9.99 8.51% $37,777 1.35% 4.60% 1.60% 4.35% 80.26%
$9.69 3.13% $38,835 1.40% 5.18% 1.65% 4.93% 70.63%
$9.89 3.40% (a) $41,178 1.18% (b) 5.53% (b) 1.18% (b) 5.53% (b) 69.30%
</TABLE>
- ----------------
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized
(b) Annualized
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES: DIVIDENDS & DISTRIBUTIONS:
-------------------------------------------------- ----------------------------------
TOTAL
NAV NET NET REALIZED/ TOTAL FROM FROM NET FROM NET DIVIDENDS
BEGINNING INVESTMENT UNREALIZED INVESTMENT INVESTMENT REALIZED AND
OF PERIOD INCOME GAINS/(LOSSES) ACTIVITIES INCOME GAINS DISTRIBUTIONS
--------- ------ -------------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND FUND
Year Ended March 31, 2000 $9.88 0.57 (0.35) 0.22 (0.57) 0.00 (0.57)
Year Ended March 31, 1999 $9.86 0.53 0.04 0.57 (0.53) (0.02) (0.55)
Eleven Months Ended March 31, 1998 $9.82 0.66 0.33 0.99 (0.66) (0.29) (0.95)
Year Ended April 30, 1997 $9.78 0.62 0.05 0.67 (0.62) 0.00 (0.62)
July 7, 1995 to April 30, 1996* $10.00 0.49 (0.28) 0.21 (0.43) 0.00 (0.43)
INCOME FUND
Year Ended March 31, 2000 $9.98 0.57 (0.37) 0.20 (0.57) 0.00 (0.57)
Year Ended March 31, 1999 $10.04 0.55 (0.04) 0.51 (0.57)(d) 0.00 (0.57)
Year Ended March 31, 1998 $9.70 0.50 0.38 0.88 (0.54)(c) 0.00 (0.54)
Year Ended March 31, 1997 $9.93 0.54 (0.24) 0.30 (0.53) 0.00 (0.53)
Year Ended March 31, 1996 $9.71 0.61 0.23 0.84 (0.62) 0.00 (0.62)
MUNICIPAL BOND FUND
Year Ended March 31, 2000 $10.67 0.41 (0.40) 0.01 (0.41) (0.03) (0.44)
Year Ended March 31, 1999 $10.60 0.40 0.08 0.48 (0.40) (0.01) (0.41)
Year Ended March 31, 1998 $10.22 0.40 0.40 0.80 (0.40) (0.02) (0.42)
Year Ended March 31, 1997 $10.27 0.38 (0.05) 0.33 (0.38) 0.00 (0.38)
Year Ended March 31, 1996 $9.97 0.43 0.30 0.73 (0.43) 0.00 (0.43)
BALANCED FUND
Year Ended March 31, 2000 $16.01 0.28 2.08 2.36 (0.28) (1.51) (1.79)
Year Ended March 31, 1999 $15.05 0.24 1.60 1.84 (0.24) (0.64) (0.88)
Year Ended March 31, 1998 $11.72 0.21 3.67 3.88 (0.21) (0.34) (0.55)
Year Ended March 31, 1997 $11.08 0.18 1.05 1.23 (0.18) (0.41) (0.59)
June 1, 1995 to March 31, 1996* $10.00 0.24 1.08 1.32 (0.24) 0.00 (0.24)
EQUITY FUND S SHARES
Year Ended March 31, 2000 $22.90 (0.06) 4.10 4.04 0.00 (3.66) (3.66)
Year Ended March 31, 1999 $21.04 (0.06) 3.21 3.15 (0.01) (1.28) (1.29)
Year Ended March 31, 1998 $16.58 0.00 7.19 7.19 (0.01) (2.71) (2.72)
Year Ended March 31, 1997 $14.48 0.05 2.60 2.65 (0.05) (0.50) (0.55)
Year Ended March 31, 1996 $11.44 0.13 3.27 3.40 (0.13) (0.23) (0.36)
EQUITY FUND T SHARES
Year Ended March 31, 2000 $22.94 (0.01) 4.11 4.10 0.00 (3.66) (3.66)
Year Ended March 31, 1999 $21.05 (0.01) 3.19 3.18 (0.01) (1.28) (1.29)
February 14, 1998 to March 31, 1998* $19.77 0.00 1.28 1.28 0.00 0.00 0.00
AGGRESSIVE GROWTH
Year Ended March 31, 2000 $17.63 (0.12) 5.57 5.45 0.00 (2.59) (2.59)
Year Ended March 31, 1999 $16.99 (0.11) 1.70 1.59 0.00 (0.95) (0.95)
Year Ended March 31, 1998 $11.90 (0.09) 5.61 5.52 0.00 (0.43) (0.43)
Year Ended March 31, 1997 $10.88 (0.06) 1.08 1.02 0.00 0.00 0.00
Sept. 29, 1995 to March 31, 1996* $10.00 0.00 0.90 0.90 0.00 (0.02) (0.02)
</TABLE>
- ----------------
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized
(b) Annualized
(c) Includes $.04 per share and $.02 per share of distributions in excess of net
investment income for the Limited Term Bond Fund and Income Fund
respectively, for year ended March 31, 1998.
(d) Includes $.01 per share of distribution in excess of net investment income.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<PAGE>
VINTAGE MUTUAL FUNDS, Inc.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA:
--------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET RATIO OF RATIO OF NET
NAV NET ASSETS EXPENSES TO INVESTMENT EXPENSES TO INVESTMENT
END TOTAL END OF PERIOD AVERAGE INCOME TO AVERAGE INCOME TO PORTFOLIO
OF PERIOD RETURN (000 OMITTED) NET ASSETS AVERAGE NET ASSETS NET ASSETS** AVERAGE NET ASSETS** TURNOVER
--------- ------ ------------- ----------- ------------------ ------------ -------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$9.53 2.41% $27,339 1.01% 6.01% ----- ----- 31.83%
$9.88 5.95% $21,984 1.03% 5.46% ----- ----- 37.28%
$9.86 10.30% (a) $7,213 0.88% (b) 7.66% (b) ----- ----- 225.79%
$9.83 6.97% $3,201 0.83% 6.16% ----- ----- 42.22%
$9.78 2.10% (a) $3,642 0.80% (b) 6.24% (b) ----- ----- 60.43%
$9.61 2.13% $109,486 0.99% 5.91% ----- ----- 28.35%
$9.98 5.13% $100,341 1.01% 5.51% ----- ----- 60.60%
$10.04 9.31% $104,604 1.15% 5.04% 1.40% 4.79% 52.03%
$9.70 3.14% $92,031 1.20% 5.52% 1.45% 5.27% 59.70%
$9.93 8.74% $84,752 0.97% 5.77% 0.97% 5.77% 113.25%
$10.24 0.10% $48,616 0.92% 3.91% ----- ----- 26.51%
$10.67 4.64% $49,950 0.94% 3.76% 1.04% 3.66% 13.87%
$10.60 7.89% $48,282 1.21% 3.76% 1.46% 3.51% 36.60%
$10.22 3.22% $45,164 1.28% 3.68% 1.53% 3.43% 21.00%
$10.27 7.43% $42,436 0.75% 4.21% 1.02% 3.94% 14.21%
$16.58 15.56% $96,688 1.20% 1.77% ----- ----- 64.22%
$16.01 12.66% $85,424 1.28% 1.61% ----- ----- 48.38%
$15.05 33.46% $63,403 1.38% 1.58% 1.63% 1.33% 101.32%
$11.72 11.05% $32,012 1.55% 1.58% 1.80% 1.33% 38.35%
$11.08 13.29% (a) $13,516 1.32% (b) 2.66% (b) 1.32% (b) 2.66% (b) 61.72%
$23.28 18.59% $325,035 1.36% (0.31%) ----- ----- 89.42%
$22.90 15.72% $253,593 1.40% (0.34%) ----- ----- 59.22%
$21.05 45.54% $196,772 1.31% 0.08% 1.56% 0.33% 72.80%
$16.58 18.35% $309,669 1.33% 0.32% 1.58% 0.07% 37.08%
$14.48 29.96% $210,950 1.09% 0.96% 1.09% 0.96% 33.23%
$23.38 18.83% $259,796 1.11% (0.06%) ----- ----- 89.42%
$22.94 15.88% $280,418 1.15% (0.08%) ----- ----- 59.22%
$21.05 6.40% (a) $275,245 1.19% (b) 0.63% (b) 1.44% (b) 0.38% (b) 72.80%
$20.49 33.51% $159,299 1.35% (0.67%) ----- ----- 156.56%
$17.63 9.85% $121,552 1.42% (0.69%) ----- ----- 61.90%
$16.99 46.82% $101,377 1.56% (0.74%) 1.81% (0.99%) 86.36%
$11.90 9.39% $49,413 1.63% (0.64%) 1.88% (0.89%) 45.14%
$10.88 9.10% (a) $23,319 1.57% (b) 0.08% (b) 1.57% (b) 0.08% (b) 4.31%
</TABLE>
- -------------------------------------------------------------------------------
* Period from commencement of operations
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized.
(b) Annualized.
(c) Includes $.04 per share and $.02 per share of distributions in excess of net
investment income for the Limited Term Bond Fund and Income Fund
respectively, for year ended March 31, 1998.
(d) Includes $.01 per share of distribution in excess of net investment income.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
VINTAGE MUTUAL FUNDS, INC.
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Government Assets Fund, Liquid
Assets Fund, Municipal Assets Fund, Limited Term Bond Fund, Bond Fund, Income
Fund, Municipal Bond Fund, Balanced Fund, Equity Fund, and Aggressive Growth
Fund (constituting Vintage Mutual Funds, Inc., the "Fund") at March 31, 2000,
and the results of each of their operations, the changes in each of their net
assets and the financial highlights for the year then ended, in conformity with
accounting principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at March
31, 2000, by correspondence with the custodian and brokers, provides a
reasonable basis for the opinion expressed above. The financial statements for
the year ended March 31, 1999, including the financial highlights for each of
the periods ended prior to April 1, 1999, were audited by other independent
accountants whose reports dated April 30, 1999 and May 8, 1998, expressed an
unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
April 28, 2000
<PAGE>
TABLE OF CONTENTS
PERFORMANCE REPORTS AND
SCHEDULES OF PORTFOLIO INVESTMENTS
PAGE 3
STATEMENTS OF ASSETS AND LIABILITIES
PAGE 38
STATEMENTS OF OPERATIONS
PAGE 42
STATEMENTS OF CHANGES IN NET ASSETS
PAGE 44
NOTES TO FINANCIAL STATEMENTS
PAGE 53
FINANCIAL HIGHLIGHTS
PAGE 60
SUPPLEMENTAL INFORMATION
PAGE 66
<PAGE>
SERVICE PROVIDERS
INVESTMENT ADVISER AND
ADMINISTRATOR
Investors Management Group
2203 Grand Avenue
Des Moines, Iowa 50312
DISTRIBUTOR
BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Cline, Williams, Wright, Johnson & Oldfather
1900 First Bank Building
Lincoln, Nebraska 68508
INDEPENDENT AUDITORS
PricewaterhouseCoopers, LLP
1177 Avenue of the Americas
New York, New York 10036
VINTAGE
[LOGO]
MUTUAL FUNDS
ANNUAL
REPORT
TO
SHAREHOLDERS
MARCH 31, 2000
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