As filed with the Securities and Exchange Commission on June 19, 1996
Securities Act File No. 33-95472
Investment Company Act File No. 811-9082
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [_]
PRE-EFFECTIVE AMENDMENT NO. [_]
POST-EFFECTIVE AMENDMENT NO. 2 [X]
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [_]
AMENDMENT NO. 3 [X]
M Fund, Inc.
(Exact Name of Registrant )
River Park Center
205 S.E. Spokane Street
Portland, Oregon 97202
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (503) 232-6960
Name and Address of Agent for Service of Process: Copy to:
Daniel F. Byrne, President Frederick R. Bellamy, Esquire
M Fund, Inc. Sutherland, Asbill & Brennan
River Park Center 1275 Pennsylvania Avenue, N.W.
205 S.E. Spokane Street Washington, D.C. 20004-2404
Portland, Oregon 97202
It is proposed that this filing will become effective:
x immediately upon filing pursuant to paragraph (b)
---
___ on _____ pursuant to paragraph (b)
___ 60 days after filing pursuant to paragraph (a) (1)
___ on _____ pursuant to paragraph (a) (1)
___ 75 days after filing pursuant to paragraph (a) (2)
___ on _____ pursuant to paragraph (a) (2) of rule 485
If appropriate, check the following box:
___ this Post-Effective Amendment designates a new effective date
for a previously filed Post-Effective Amendment.
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, the Registrant
has registered an indefinite amount of securities. No Rule 24f-2 notice for the
fiscal year ended December 31, 1995 will be filed with the Commission since the
Registrant had not commenced distribution activities prior to the end of such
fiscal year.
CROSS REFERENCE SHEET
Pursuant to Rule 495 under the Securities Act of 1933
N-1A
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Item Caption
- - ---- -------
PART A: INFORMATION REQUIRED IN A PROSPECTUS
<S> <C> <C>
1. Cover Page Cover Page
2. Synopsis (Not applicable)
3. Condensed Financial Information Financial Highlights
4. General Description of Registrant Introduction; Investment Objectives and Policies;
Investment Methods and Risks
5. Management of the Fund Management
5A. Management's Discussion of Fund Performance (Not applicable)
6. Capital Stock and Other Securities Other Information
7. Purchase of Securities Being Offered Offering, Purchase and Redemption of Shares
8. Redemption or Repurchase Offering, Purchase and Redemption of Shares
9. Pending Legal Proceedings (Not Applicable)
PART B: INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History Introduction; Shares of Stock
N-1A
Item Caption
---- -------
13. Investment Objectives and Policies Special Investment Methods and Risks; Investment
Restrictions
14. Management of the Fund Investment Adviser; Portfolio Managers
15. Control Persons and Principal Holders of Shares of Stock
Securities
16. Investment Advisory and Other Services Investment Adviser; Portfolio Managers
17. Brokerage Allocation and Other Practices Portfolio Transactions and Brokerage
18. Capital Stock and Other Securities Shares of Stock
19. Purchase, Redemption and Pricing of Determination of Net Asset Value
Securities Being Offered
20. Tax Status Tax Information
21. Underwriters (Not Applicable)
22. Calculation of Performance Data Performance Information
23. Financial Statements Financial Statements
</TABLE>
PART C: OTHER INFORMATION
Information required to be included in Part C is set forth under the appropriate
Item, so numbered, in Part C to this Registration Statement.
PART A
INFORMATION REQUIRED IN A PROSPECTUS
Two Supplements dated June 17, 1996 to M Fund Prospectus dated January 1, 1996
are filed herewith.
M Fund Prospectus (Version A - Four Series) dated January 1, 1996 is
incorporated by reference to
Post-Effective Amendment No. 1 to Registrant's Registration Statement
filed on February 1, 1996 via EDGARLINK.
Securities Act File No. 33-95472
Investment Company Act File No. 811-9082
M Fund Prospectus (Version B - Three Series)
dated January 1, 1996 is incorporated by reference
to Prospectus filed pursuant to Rule 497 (c)
of the Securities Act of 1933 on February 5, 1996 via EDGARLINK
Securities Act File No. 33-95472
Investment Company Act File No. 811-9082
M FUND, INC.
SUPPLEMENT DATED JUNE 17, 1996 TO
PROSPECTUS DATED JANUARY 1, 1996
The following is inserted after the section entitled "INTRODUCTION" on page
3 of the Prospectus:
Financial Highlights (unaudited) - For the period ended April 30, 1996 (a)
The following financial highlights should be read in conjunction with the
financial statements and notes thereto which are contained in the Statement of
Additional Information.
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EDINBURGH
OVERSEAS TURNER CORE
EQUITY FUND GROWTH FUND
----------- -----------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.02
Net realized and unrealized gain on investments 0.32 1.14
----------- -----------
Total from investment operations 0.35 1.16
----------- -----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income - -
From net realized gains - -
----------- -----------
Total distributions - -
----------- -----------
NET ASSET VALUE, END OF PERIOD $10.35 $11.16
=========== ===========
TOTAL RETURN 10.82 %* 35.88 %*
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $2,204 $1,326
Net expenses to average daily net assets 1.30 %* 0.70 %*
Net investment income (loss) to average daily net assets 0.97 %* 0.65 %*
Portfolio turnover rate 17 % 45 %
Average commission rate paid $0.05 ** $0.06 **
- - ---------------------------------------------------------------------------------------------------------------------
Without the reimbursement of expenses
by the adviser, the ratio of net expenses to average net assets
would have been :
Expenses 8.59 %* 12.13 %*
(a) Fund's commenced operations on January 4, 1996
* Annualized
** Average commission rate paid is computed by dividing the
total dollar amount of commissions paid during the period by
the total number of shares purchased and sold during the
period for which commissions were charged. Amount is
computed on a non annualized basis.
</TABLE>
<TABLE>
<CAPTION>
FRONTIER CAPITAL ENHANCED
APPRECIATION U.S. EQUITY
FUND FUND
------------- -----------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00
------------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01) 0.04
Net realized and unrealized gain on investments 1.98 0.99
------------- -----------
Total from investment operations 1.97 1.03
------------- -----------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income - -
From net realized gains - -
------------- -----------
Total distributions - -
------------- -----------
NET ASSET VALUE, END OF PERIOD $11.97 $11.03
============= ===========
TOTAL RETURN 60.94 %* 31.86 %*
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $1,352 $1,103
Net expenses to average daily net assets 1.15 %* 0.80 %*
Net investment income (loss) to average daily net assets (0.47)%* 1.28 %*
Portfolio turnover rate 37 % 1 %
Average commission rate paid $0.05 ** $0.01 **
- - ----------------------------------------------------------------------------------------------------------------------------
Without the reimbursement of expenses
by the adviser, the ratio of net expenses to average net assets
would have been :
Expenses 12.99 %* 12.94 %*
(a) Fund's commenced operations on January 4, 1996
* Annualized
** Average commission rate paid is computed by dividing the
total dollar amount of commissions paid during the period by
the total number of shares purchased and sold during the
period for which commissions were charged. Amount is
computed on a non annualized basis.
</TABLE>
M FUND, INC.
SUPPLEMENT DATED JUNE 17, 1996 TO
PROSPECTUS DATED JANUARY 1, 1996
The following is inserted after the section entitled "INTRODUCTION" on page
3 of the Prospectus:
Financial Highlights (unaudited) - For the period ended April 30, 1996 (a)
The following financial highlights should be read in conjunction with the
financial statements and notes thereto which are contained in the Statement of
Additional Information.
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EDINBURGH FRONTIER CAPITAL
OVERSEAS TURNER CORE APPRECIATION
EQUITY FUND GROWTH FUND FUND
------------- ----------- ------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00 $10.00
------------- ----------- -------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.02 (0.01)
Net realized and unrealized gain on investments 0.32 1.14 1.98
------------- ----------- -------------
Total from investment operations 0.35 1.16 1.97
------------- ----------- -------------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income - - -
From net realized gains - - -
------------- ----------- -------------
Total distributions - - -
------------- ----------- -------------
NET ASSET VALUE, END OF PERIOD $10.35 $11.16 $11.97
============= =========== =============
TOTAL RETURN 10.82%* 35.88%* 60.94%*
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $2,204 $1,326 $1,352
Net expenses to average daily net assets 1.30 %* 0.70 %* 1.15 %*
Net investment income (loss) to average daily net assets 0.97 %* 0.65 %* (0.47)%*
Portfolio turnover rate 17 % 45 % 37 %
Average commission rate paid $0.05** $0.06 ** $0.05 **
- - --------------------------------------------------------------------------------------------------------------------------
Without the reimbursement of expenses
by the adviser, the ratio of net expenses to average net assets
would have been :
Expenses 8.59 %* 12.13 %* 12.99 %*
(a) Fund's commenced operations on January 4, 1996
* Annualized
** Average commission rate paid is computed by dividing the
total dollar amount of commissions paid during the period by
the total number of shares purchased and sold during the
period for which commissions were charged. Amount is
computed on a non annualized basis.
</TABLE>
PART B
INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
Supplement dated June 17, 1996 to M Fund
Statement of Additional Information
dated January 1, 1996 is filed herewith.
M Fund Statement of Additional Information
dated January 1, 1996 is incorporated by reference
to Post-Effective Amendment No. 1 to Registrant's
Registration Statement filed on February 1, 1996
via EDGARLINK
Securities Act File No. 33-95472
Investment Company Act File No. 811-9082
M FUND
SUPPLEMENT DATED JUNE 17, 1996 TO
STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 1, 1996
The following Financial Statements for the period from January 4, 1996
(commencement of operations) to April 30, 1996 are included after the Report on
Audit of Financial Statements As of January 2, 1996 in the Statement of
Additional Information.
EDINBURGH OVERSEAS EQUITY FUND
PORTFOLIO OF INVESTMENTS
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN COMMON STOCK - 93.8%
ARGENTINA - 2.6%
9,800 Ciadea...........................................$ 56,846
------------
BRAZIL - 2.2%
4,000 Electrobras ADR.................................. 49,384
------------
FRANCE - 2.3%
500 Lyonnaise Des Eaux-Dumez......................... 50,218
------------
GERMANY - 5.5%
220 Siemens AG....................................... 120,453
------------
HONG KONG - 3.6%
11,000 Henderson Land Development....................... 78,922
------------
ITALY - 3.1%
19,700 Italgas.......................................... 67,840
------------
JAPAN - 32.3%
15,000 Dainippon Ink & Chemical Inc..................... 81,487
12 DDI Corporation.................................. 102,998
21,000 Kobe Steel Ltd................................... 65,161
4,000 Mori Seiki....................................... 91,274
2,000 Murata Manufacturing Co Ltd...................... 78,098
15,000 Nihon Cement Co., Ltd............................ 106,836
4,000 Nomura Securities Co Ltd......................... 87,073
7,000 Sumitomo Trust & Banking......................... 102,253
------------
715,180
------------
MALAYSIA - 4.5%
57,000 Renong Berhad.................................... 99,218
------------
NETHERLANDS - 5.7%
3,330 Royal Ptt Nederland Nv........................... 124,960
------------
SINGAPORE - 5.0%
8,000 Overseas Chinese Banking Corp.................... 109,831
------------
SPAIN - 6.2%
3,700 Repsol S.A....................................... 135,749
------------
SWEDEN - 2.7%
3,500 Nordbanken Ab.................................... 59,822
------------
See accompanying notes to financial statements.
</TABLE>
EDINBURGH OVERSEAS EQUITY FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
SWITZERLAND - 2.6%
53 Sandoz AG........................................$ 57,865
------------
THAILAND - 4.3%
16,000 Bank Of Ayudhya-Foreign.......................... 94,436
------------
UNITED KINGDOM - 11.2%
10,190 Smithkline Beecham A............................. 107,977
5,000 Thorn Emi Plc.................................... 138,566
------------
246,543
------------
TOTAL FOREIGN COMMON STOCK (Cost $1,993,645) 2,067,267
------------
TOTAL INVESTMENTS - 93.8%
(Cost $1,993,645) 2,067,267
Other Assets and Liabilities (net) - 6.2% 136,911
------------
TOTAL NET ASSETS - 100.0% $ 2,204,178
============
See accompanying notes to financial statements.
</TABLE>
TURNER CORE GROWTH FUND
PORTFOLIO OF INVESTMENTS
(PERCENTAGES OF TOTAL NET ASSETS)
<TABLE>
<CAPTION>
APRIL 30, 1996 VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 88.8%
300 AES Corporation..................................$ 6,825
270 Air Touch Communications......................... 8,438
250 America Online, Inc.............................. 16,000
240 America West Airlines - Class B.................. 5,040
100 American International Group..................... 9,138
150 Ameritech........................................ 8,756
260 Amgen, Inc....................................... 14,950
180 Amoco............................................ 13,140
420 Apache Corp...................................... 12,180
300 Applied Materials, Inc........................... 12,000
230 AT & T Corporation............................... 14,076
230 Atmel Corp....................................... 9,200
150 Bankamerica Corp................................. 11,363
270 Baxter International, Inc........................ 11,948
490 Bay Networks..................................... 15,435
280 Boston Chicken, Inc.............................. 8,960
210 Calenergy Inc.................................... 5,460
170 Campbell Soup Co................................. 10,625
190 Caremark International Inc....................... 5,249
165 Cascade Communications Corp...................... 16,541
210 Chase Manhattan Corporation...................... 14,464
110 Chesapeake Energy Corporation.................... 7,783
70 Chrysler......................................... 4,393
420 Cisco Systems, Inc............................... 21,788
120 Citicorp......................................... 9,450
140 Coca-Cola Company................................ 11,410
460 Cognex Corp...................................... 12,305
100 Colgate-Palmolive Co............................. 7,663
290 Corporate Express, Inc........................... 10,839
440 Cox Communications - Class A..................... 9,020
130 CSX Corp......................................... 6,663
130 Delta Air Lines, Inc............................. 10,449
280 Dole Food Company................................ 11,200
240 DST Systems...................................... 8,820
100 Dupont (E.I.) de Nemours......................... 8,038
160 Eli Lilly & Company.............................. 9,440
680 Engelhard Corp................................... 17,085
520 Enron Oil & Gas.................................. 13,780
180 Exxon............................................ 15,300
260 Federated Department Stores...................... 8,678
See accompanying notes to financial statements.
</TABLE>
TURNER CORE GROWTH FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
<TABLE>
<CAPTION>
APRIL 30, 1996 VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - CONTINUED
230 First Data.......................................$ 17,480
160 Foster Wheeler Corporation....................... 7,400
310 Frontier Corporation............................. 9,804
320 Gap Stores....................................... 9,640
170 Gartner Group Inc-Class A........................ 5,823
240 Gillette Co...................................... 12,960
470 Global Marine Inc................................ 5,346
280 Harley-Davidson.................................. 12,355
190 Harnischfeger Industries, Inc.................... 7,695
120 HBO & Company.................................... 14,250
140 Hercules, Inc.................................... 8,470
70 Hewlett-Packard Inc.............................. 7,411
180 Home Depot....................................... 8,528
440 IBP, Inc......................................... 11,770
130 Intel Corporation................................ 8,808
100 International Business Machine................... 10,750
380 Jefferson Pilot Corp............................. 20,045
230 Johnson & Johnson................................ 21,275
120 Kimberly-Clark................................... 8,715
120 Louisiana Land & Exploration, Company............ 6,495
240 LSI Logic........................................ 8,640
280 Lucent Technologies.............................. 9,835
140 Macromedia Inc................................... 5,276
70 McDonald's Corporation........................... 3,351
420 MCI Communications Corporation................... 12,364
210 Medtronic, Inc................................... 11,156
240 Merck & Co., Inc................................. 14,520
220 Merrill Lynch & Company.......................... 13,283
130 Microsoft Corporation............................ 14,739
300 Morgan Stanley Group Inc......................... 15,075
360 Morton International,Inc......................... 12,735
230 Nationsbank Corporation.......................... 18,343
200 Netscape Communications Corp..................... 12,200
110 Nike, Inc........................................ 9,625
220 Occidental Petroleum............................. 5,665
480 Officemax Inc.................................... 12,600
360 Oracle Corp...................................... 12,150
100 Paychex, Inc..................................... 6,775
230 Pepsico, Inc..................................... 14,605
320 Petsmart Inc..................................... 14,200
140 Philip Morris Companies.......................... 12,618
See accompanying notes to financial statements.
</TABLE>
TURNER CORE GROWTH FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
<TABLE>
<CAPTION>
APRIL 30, 1996 VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - CONTINUED
230 Premisys Communications, Inc.....................$ 10,063
200 Procter & Gamble Co.............................. 16,900
260 Renal Treatment Centers Inc...................... 7,540
390 Rite Aid Corp.................................... 11,554
280 Safeway Inc...................................... 9,450
240 Service Corp International....................... 12,750
150 Sigma Aldrich Corp............................... 8,100
390 Silicon Valley Group, Inc........................ 10,433
450 Smith International.............................. 13,388
200 Sonat, Inc....................................... 8,725
290 Starbucks Corporation............................ 7,866
180 Sun Microsystems, Inc............................ 9,765
240 Tele-Communications International-Class A........ 4,890
970 Tele-Communications,Inc Series A................. 18,551
100 Telephone & Data System.......................... 4,650
190 Texaco........................................... 16,245
250 The Pep Boys..................................... 8,344
200 Tommy Hilfiger Corp.............................. 9,100
130 Travelers Group.................................. 7,995
330 Travelers/Aetna Property Corp.................... 9,116
300 Ultramar......................................... 9,413
380 Ultratech Stepper Inc............................ 9,928
240 Union Carbide Corp............................... 10,920
200 United Healthcare Corp........................... 11,700
340 US West Media Group.............................. 6,630
300 Uunet Technologies............................... 17,625
150 Walt Disney Company.............................. 9,300
250 WMX Technologies................................. 8,688
------------
TOTAL COMMON STOCKS (Cost $1,076,056) 1,178,296
------------
TOTAL INVESTMENTS - 88.8%
(Cost $1,076,056) 1,178,296
Other Assets and Liabilities (net) - 11.2% 148,056
------------
TOTAL NET ASSETS - 100.0% $ 1,326,352
============
See accompanying notes to financial statements.
</TABLE>
FRONTIER CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 81.6%
370 Aar Corp.........................................$ 7,539
510 Actel Corporation................................ 9,435
2,000 Aeroflex Inc..................................... 9,500
300 AirTouch Communications.......................... 9,375
600 Allen Group Inc.................................. 14,850
1,200 Alpha Industries Inc............................. 13,500
800 America West Airlines - Class B.................. 16,800
350 American Business Information Inc................ 6,825
550 Amphenol Corp. Class A........................... 14,506
200 Anadarko Petroleum Corp.......................... 11,650
1,300 Anika Research Inc............................... 5,281
700 Aquila Gas Pipeline Corp......................... 9,713
950 Arch Communications Group Inc.................... 22,550
2,000 Banner Aerospace Inc............................. 11,500
500 Boston Technology Inc............................ 8,688
400 Bugaboo Creek Steak House........................ 3,200
600 Calenergy Inc.................................... 15,600
230 Carpenter Technology............................. 8,654
700 Centigram Communications Corp.................... 16,538
1,100 Central Garden & Pet Co.......................... 11,688
1,330 Chantal Pharmaceutical Corp...................... 9,144
1,550 Childrens Comprehensive Services................. 22,088
340 Cirrus Logic Inc................................. 7,098
510 Comcast Corp..................................... 8,925
400 Computer Task Group Inc.......................... 11,150
330 Compuware Corp................................... 9,405
420 Comverse Technology Inc.......................... 9,818
500 Conseco Inc...................................... 18,250
850 Datametrics Corp................................. 7,119
100 Davox Corp....................................... 2,488
200 DH Technology Inc................................ 5,050
300 DII Group Inc.................................... 10,425
510 Donnkenny Inc.................................... 10,136
300 DSC Communications............................... 9,450
1,480 Encore Wire Corp................................. 14,245
500 Endosonics Corp.................................. 8,688
670 Galoob Lewis Toys Inc............................ 14,238
200 Harman International Industries.................. 9,450
1,140 Hexcel Corp...................................... 14,393
400 Highwoods Properties............................. 12,100
1,600 HMT Technology Corp.............................. 35,400
300 Infinity Broadcasting Corp....................... 8,700
See accompanying notes to financial statements.
</TABLE>
FRONTIER CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - CONTINUED
970 Insituform Technologies-Class A..................$ 11,276
200 Intel Corporation................................ 13,550
700 Intercel Inc..................................... 15,750
1,080 International Imaging Material................... 20,520
400 Jacobs Engineering Group......................... 11,100
850 John Alden Financial Corp........................ 16,575
700 Jones Intercable Inc............................. 10,106
100 Liberty Media Group-Class A...................... 2,738
400 Long Island Bancorp Inc.......................... 11,100
200 Louisiana Land & Exploration, Corp............... 10,825
200 Maxim Intergrated Products....................... 6,850
450 Maxxim Medical Inc............................... 7,988
1,040 Mesaba Holdings Inc.............................. 12,090
400 Metrocall Inc.................................... 8,500
730 Microwave Power Devices Inc...................... 6,023
470 Natural Microsystems Corp........................ 17,743
200 Network General Corporation...................... 8,825
400 Nymagic Inc...................................... 7,450
270 Oak Industries Inc............................... 7,290
1,100 Omi Corp......................................... 9,488
400 Paul Revere Corp................................. 10,450
1,400 Penril Datacomm Networks Inc..................... 11,725
900 Perini Corp...................................... 7,988
200 Production Operators Corp........................ 6,650
600 Protection One Inc............................... 9,450
200 Protein Design Labs Inc.......................... 5,300
250 Qualcom Inc...................................... 9,688
650 Quantum Health Resources......................... 9,263
340 Quorum Health Group Inc.......................... 8,628
400 Rogers Corp...................................... 10,050
900 Safetytek Corp................................... 12,150
200 Seagate Technology, Inc.......................... 11,600
1,000 Semiconductor Packaging Materials................ 10,000
660 Sheldahl Inc..................................... 14,768
500 Sodak Gaming..................................... 12,875
190 Spectrian Corp................................... 4,703
1,300 Sport-Haley Inc.................................. 17,063
510 Staar Surgical Co................................ 6,630
900 State Of The Art Inc............................. 13,275
300 Strattec Security Corp........................... 5,775
470 Summa Four Inc................................... 7,990
200 TCA Cable TV Inc................................. 5,850
See accompanying notes to financial statements.
</TABLE>
FRONTIER CAPITAL APPRECIATION FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - CONTINUED
390 Technology Solutions Company.....................$ 10,530
100 Texas Industries Inc............................. 6,400
430 Trimble Navigation Ltd........................... 10,374
400 Triquint Semiconductor Inc....................... 8,300
450 TSX Corp......................................... 10,688
400 Ultramar......................................... 12,550
1,300 UNC Incorporated................................. 10,075
700 United American Healthcare....................... 9,888
350 United Wisconsin Services........................ 7,744
1,000 U.S. Can Corporation............................. 17,125
800 Valassis Communications Inc...................... 12,600
300 Viacom Inc Class B............................... 12,300
620 VLSI Technology.................................. 10,811
500 Western Digital.................................. 11,750
100 Wiser Oil Co..................................... 1,350
500 World Airways Inc................................ 4,922
400 Worldcom, Inc.................................... 18,800
1,500 Worldcorp Inc.................................... 14,250
------------
1,103,267
------------
TOTAL COMMON STOCKS (Cost $925,894) 1,103,267
------------
TOTAL INVESTMENTS - 81.6%
(Cost $925,894) 1,103,267
Other Assets and Liabilities (net) - 18.4% 248,463
------------
TOTAL NET ASSETS - 100.0% $ 1,351,730
============
See accompanying notes to financial statements.
</TABLE>
ENHANCED U.S. EQUITY FUND
PORTFOLIO OF INVESTMENTS
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 95.0%
NETHERLANDS - 2.5%
100 Royal Dutch Petroleum............................$ 14,325
100 Unilever ADR..................................... 13,650
------------
27,975
------------
NORWAY - 0.8%
200 Norsk Hydro AS ADR............................... 9,200
------------
UNITED STATES - 91.7%
167 360 Communications Co............................ 3,917
400 Abbott Laboratories.............................. 16,250
300 Aflac Corp....................................... 9,300
300 Allstate Corp.................................... 11,663
100 American International Group..................... 9,138
200 Amoco............................................ 14,600
700 Archer Daniels Midland........................... 13,213
100 AT & T Corporation............................... 6,125
200 Avery-Dennison Corporation....................... 11,400
400 Avnet Inc........................................ 21,100
100 Bank of New York................................. 4,850
300 Bankamerica Corp................................. 22,725
300 Cardinal Health Inc.............................. 18,825
200 Central & South West Corp........................ 5,450
200 Chase Manhattan Corporation...................... 13,775
200 Coca-Cola Company................................ 16,300
100 Columbia/HCA Healthcare.......................... 5,313
200 ConAgra.......................................... 7,725
100 Consolidated Edison Of N.Y....................... 2,938
400 Dover Corp....................................... 20,600
300 Dow Chemical..................................... 26,663
200 Dupont (E.I.) de Nemours......................... 16,075
800 Edison International............................. 12,800
400 Exxon............................................ 34,000
400 Federal National Mortgage Association............ 12,250
300 First Chicago NBD Corporation.................... 12,375
300 First Miss Corp.................................. 6,975
100 First Union Corp................................. 6,150
400 General Electric................................. 31,000
300 GTE.............................................. 13,013
200 Halliburton Company.............................. 11,475
100 Hewlett-Packard Inc.............................. 10,588
400 IBP, Inc......................................... 10,700
100 Intel Corporation................................ 6,775
See accompanying notes to financial statements.
</TABLE>
ENHANCED U.S. EQUITY FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES - CONTINUED
300 International Business Machine...................$ 32,250
300 International Paper Co........................... 11,963
300 Johnson & Johnson................................ 27,750
400 Kingworld Productions Inc........................ 17,400
100 Lockheed Martin Corporation...................... 8,063
100 Loews Corp....................................... 7,625
300 MBNA Corporation................................. 8,504
200 MCI Communications Corporation................... 5,888
200 Medtronic, Inc................................... 10,625
500 Merck & Co., Inc................................. 30,250
100 Microsoft Corporation............................ 11,338
200 Motorola, Inc.................................... 12,250
300 Nationsbank Corporation.......................... 23,925
700 Navistar International........................... 8,400
300 New York Times Co................................ 9,750
400 Newell Co........................................ 11,400
300 Pacific Enterprises.............................. 7,725
400 Pacific Gas & Electric........................... 9,100
300 Panenergy Corp................................... 9,788
300 Parker-Hannifin Corp............................. 12,675
100 Pepsico, Inc..................................... 6,350
300 Pfizer, Inc...................................... 20,663
200 Phelps Dodge Corp................................ 14,700
200 Philip Morris Companies.......................... 18,025
300 Phillips Petroleum Co............................ 12,450
100 Procter & Gamble Co.............................. 8,450
200 Safeco Corp...................................... 6,600
100 Sbc Communications, Inc.......................... 5,000
200 Sears, Roebuck................................... 9,975
300 Service Corp International....................... 15,938
500 Sprint Corp...................................... 21,063
750 Staples, Inc..................................... 14,250
200 Sun Microsystems, Inc............................ 10,850
200 Temple Inland Inc................................ 9,700
200 Texas Instruments................................ 11,300
200 Textron.......................................... 17,150
100 Transamerica Corp................................ 7,600
400 Travelers Group.................................. 24,600
400 Unicom Corporation............................... 11,000
400 Union Carbide Corp............................... 18,200
See accompanying notes to financial statements.
</TABLE>
ENHANCED U.S. EQUITY FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
(PERCENTAGES OF TOTAL NET ASSETS)
APRIL 30, 1996
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 1)
- - --------------------------------------------------------------------------------
<S> <C> <C>
UNITED STATES - CONTINUED
200 Viacom Inc Class B...............................$ 8,200
100 Walt Disney Company.............................. 6,200
200 Weyerhauser Co................................... 9,900
------------
1,010,879
------------
TOTAL COMMON STOCKS (Cost $949,368) 1,048,054
------------
TOTAL INVESTMENTS - 95.0%
(Cost $949,368) 1,048,054
Other Assets and Liabilities (net) - 5.0% 55,244
------------
TOTAL NET ASSETS - 100.0% $ 1,103,298
============
See accompanying notes to financial statements.
</TABLE>
M FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 1996
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------------------------------------------
EDINBURGH FRONTIER CAPITAL ENHANCED
OVERSEAS TURNER CORE APPRECIATION U.S. EQUITY
EQUITY FUND GROWTH FUND FUND FUND
----------- ----------- ---- ----
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Note 1)* - see
accompanying portfolio of investments $2,067,267 $1,178,296 $1,103,267 $1,048,054
Cash 126,325 33,928 167,435 (147)
Foreign currency, at value (Note 1)** 48,842 - - -
Receivable from:
Securities sold - 17,037 26,223 -
Net open forward currency contracts (Note 6) 197 - - -
Dividends and interest 4,658 940 340 1,423
Investment Adviser (Note 2) 41,869 39,962 38,391 40,072
Deferred organization expense 97,476 97,476 97,476 97,476
---------- ---------- ---------- ----------
Total assets 2,386,634 1,367,639 1,433,132 1,186,878
---------- ---------- ---------- ----------
LIABILITIES:
Payable for securities purchased 151,030 15,461 - -
Organization expense payable (Note 5) 8,183 8,183 64,000 64,000
Accrued expenses and other liabilities 23,243 17,643 17,402 19,580
---------- ---------- ---------- ----------
Total liabilities 182,456 41,287 81,402 83,580
---------- ---------- ---------- ----------
NET ASSETS $2,204,178 $1,326,352 $1,351,730 $1,103,298
========== ========== ========== ==========
NET ASSETS CONSIST OF:
Paid-in capital $2,133,412 $1,201,056 $1,148,946 $1,000,000
Undistributed net investment income (loss) 6,471 2,372 (1,635) 4,415
Accumulated net realized gain (loss)
on investments and foreign currency
transactions (9,339) 20,684 27,046 197
Net unrealized appreciation
on investments, forward currency contracts,
and net other assets 73,634 102,240 177,373 98,686
---------- ---------- ---------- ----------
NET ASSETS $2,204,178 $1,326,352 $1,351,730 $1,103,298
========== ========== ========== ==========
SHARES OUTSTANDING 213,067 118,862 112,945 100,000
========== ========== ========== ==========
Net asset value, offering price and redemption $10.35 $11.16 $11.97 $11.03
========== ========== ========== ==========
* Cost of investments $1,993,645 $1,076,056 $925,894 $949,368
** Cost of foreign currency $49,184 - - -
See accompanying notes to the financial statements.
</TABLE>
M FUND, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE PERIOD ENDED APRIL 30, 1996 (A)
<TABLE>
<CAPTION>
- - --------------------------------------------------------------------------------------------------------------------------
EDINBURGH FRONTIER CAPITAL ENHANCED
OVERSEAS TURNER CORE APPRECIATION U.S. EQUITY
EQUITY FUND GROWTH FUND FUND FUND
----------- ----------- ---------------- -----------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest $4,243 $1,872 $1,478 $1,269
Dividends * 10,742 3,042 903 5,906
----------- ----------- ---------- ----------
Total investment income 14,985 4,914 2,381 7,175
EXPENSES: ----------- ----------- ---------- ----------
Investment Advisory fee (Note 2) 6,916 1,666 3,169 1,927
Custody and administration fees 31,277 24,237 24,080 24,552
Professional fees 7,096 6,461 6,460 6,461
Registration and filing fees 332 259 259 259
Directors' fees and expenses 2,543 2,543 2,543 2,543
Amortization of organization costs 6,524 6,524 6,524 6,524
Other 2,384 2,384 2,384 2,384
----------- ----------- ---------- ----------
Total expenses 57,072 44,074 45,419 44,650
Less: Expenses reimbursable by
the Adviser (Note 2) 48,558 41,532 41,403 41,890
----------- ----------- ---------- ----------
Net operating expenses 8,514 2,542 4,016 2,760
----------- ----------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 6,471 2,372 (1,635) 4,415
----------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investment transactions (10,603) 20,684 27,046 197
Foreign currency transactions 1,264 - - -
----------- ----------- ---------- ----------
Net realized gain (loss) (9,339) 20,684 27,046 197
----------- ----------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on:
Investments 73,622 102,240 177,373 98,686
----------- ----------- ---------- ----------
Forward currency and net other assets 12 - - -
----------- ----------- ---------- ----------
Net unrealized appreciation during the period 73,634 102,240 177,373 98,686
----------- ----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) 64,295 122,924 204,419 98,883
----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $70,766 $125,296 $202,784 $103,298
=========== =========== ========== ==========
* Net of foreign taxes withheld of: $(1477) - - $(28)
(a) Fund's commenced operations on January 4, 1996
See accompanying notes to the financial statements.
</TABLE>
M FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD ENDED APRIL 30, 1996 (A)
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------
EDINBURGH FRONTIER CAPITAL ENHANCED
OVERSEAS TURNER CORE APPRECIATION U.S.EQUITY
EQUITY FUND GROWTH FUND FUND FUND
----------- ----------- ---------------- ----------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) $6,471 $2,372 ($1,635) $4,415
Net realized gain (loss) on investment
and foreign currency transactions (9,339) 20,684 27,046 197
Net change in unrealized appreciation
on investments, forward currency
contracts, foreign currency, and other assets 73,634 102,240 177,373 98,686
----------- ------------ ------------ -----------
Net increase in net assets
resulting from operations 70,766 125,296 202,784 103,298
----------- ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income - - - -
From net realized capital gains - - - -
----------- ------------ ------------ -----------
Total distributions to shareholders - - - -
----------- ------------ ------------ -----------
FUND SHARE TRANSACTIONS (NOTE 4):
Proceeds from shares sold 2,094,144 1,181,614 1,129,048 980,000
Net asset value of shares issued on
reinvestment of distributions - - - -
Cost of shares repurchased (732) (558) (102) -
----------- ------------ ------------ -----------
Net increase (decrease) in net assets resulting
from Fund share transactions 2,093,412 1,181,056 1,128,946 980,000
----------- ------------ ------------ -----------
TOTAL CHANGE IN NET ASSETS 2,164,178 1,306,352 1,331,730 1,083,298
NET ASSETS:
Beginning of period 40,000 20,000 20,000 20,000
----------- ------------ ------------ -----------
End of period * $2,204,178 $1,326,352 $1,351,730 $1,103,298
=========== ============ ============ ===========
* Including undistributed net investment income (loss) of: $6,471 $2,372 ($1,635) $4,415
(a) Fund's commenced operations on January 4, 1996
See accompanying notes to the financial statements.
</TABLE>
M FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR THE PERIOD ENDED APRIL 30, 1996 (A)
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------------
EDINBURGH FRONTIER CAPITAL ENHANCED
OVERSEAS TURNER CORE APPRECIATION U.S. EQUITY
FUND GROWTH FUND FUND FUND
---------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00 $10.00 $10.00
--------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.03 0.02 (0.01) 0.04
Net realized and unrealized gain on investments 0.32 1.14 1.98 0.99
--------- --------- --------- ---------
Total from investment operations 0.35 1.16 1.97 1.03
--------- --------- --------- ---------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income - - - -
From net realized gains - - - -
--------- --------- --------- ---------
Total distributions - - - -
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $10.35 $11.16 $11.97 $11.03
========= ========= ========= =========
TOTAL RETURN 10.82 %* 35.88 %* 60.94 %* 31.86 %*
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $2,204 $1,326 $1,352 $1,103
Net expenses to average daily net assets 1.30 %* 0.70 %* 1.15 %* 0.80 %*
Net investment income (loss) to average 0.97 %* 0.65 %* (0.47)%* 1.28 %*
Portfolio turnover rate 17 % 45 % 37 % 1 %
Average commission rate paid $0.05 ** $0.06 ** $0.05 ** $0.01 **
- - -------------------------------------------------------------------------------------------------------------------
Without the reimbursement of expenses
by the adviser, the ratio of net expenses to average net assets
would have been :
Expenses 8.59 %* 12.13 %* 12.99 %* 12.94 %*
(a) Fund's commenced operations on January 4, 1996
* Annualized
** Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the period by the
total number of shares purchased and sold during the period for which commissions were charged. Amount is computed
on a non annualized basis.
See accompanying notes to the financial statements.
</TABLE>
M FUND, INC.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
- - --------------------------------------------------------------------------------
M Fund, Inc. (the "Company") was incorporated in Maryland on August 11,
1995 and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end management investment company. The Company
consists of four separate diversified investment portfolios: Edinburgh
Overseas Equity Fund, Turner Core Growth Fund, Frontier Capital
Appreciation Fund and Enhanced U.S. Equity Fund, (the "Funds"), each of
which is, in effect, a separate mutual fund. All of the Funds commenced
operations on January 4, 1996.
The Funds are available through the purchase of variable life insurance and
variable annuity policies. Shares of the Funds may also be sold to
qualified pension and retirement plans. Each of the Funds seeks long term
capital appreciation or total return, and each Fund will invest primarily
in stocks and other equity securities.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies for the
Funds. Such policies are in conformity with generally accepted accounting
principles for investment companies and are consistently followed by the
Funds in the preparation of the financial statements.
PORTFOLIO VALUATION
Equity securities and other similar investments traded on a recognized U.S.
or foreign securities exchange or the National Association of Securities
Dealers Automated Quotation System (NASDAQ) are valued at their last sale
price on the principal exchange on which they are traded or NASDAQ (if
NASDAQ is the principal market for such securities). If no sale occurs,
equities traded on a U.S. exchange or NASDAQ are valued at the mean between
the closing bid and asked price. Equities traded on a foreign exchange, for
which no sale occurs, are valued at the official bid price. Unlisted equity
securities for which market quotations are readily available are valued at
the last sale price or, if no sale occurs, at the mean between the last bid
and asked price. Debt securities and other fixed-income investments of the
Funds will be valued at prices supplied by independent pricing agents
approved by the Board of Directors. Short-term obligations maturing in
sixty days or less are valued at amortized cost. Amortized cost valuation
involves initially valuing a security at its cost, and thereafter, assuming
a constant amortization to maturity of any discount or premium, regardless
of the impact of fluctuating interest rates on the market value of the
security. Securities whose market value does not, in the Adviser's opinion,
reflect fair value, are valued at fair value using methods determined in
good faith by the Board of Directors.
REPURCHASE AGREEMENTS
Turner Core Growth Fund and Enhanced U.S. Equity Fund may engage in
repurchase agreement transactions. Under the terms of a typical repurchase
agreement, the Fund takes possession of an underlying debt obligation (i.e.
collateral) subject to an obligation of the seller to repurchase, and the
Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement
results in a fixed rate of return that is not subject to
M FUND, INC.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
- - --------------------------------------------------------------------------------
market fluctuations during the Fund's holding period. The value of the
collateral is at least equal at all times to the total amount of the
repurchase obligations, including interest. In the event of counterparty
default, the Fund has the right to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the
collateral securities, including the risk of a possible decline in the
value of the underlying securities during the period while the Fund seeks
to assert its rights. The Fund's investment adviser, acting under the
supervision of the Board of Directors, reviews the value of the collateral
and the creditworthiness of those banks and dealers with which the Fund
enters into repurchase agreements to evaluate potential risks.
FOREIGN CURRENCY
Edinburgh Overseas Equity Fund may invest in non U.S. dollar denominated
assets. Foreign currencies, investments and other assets and liabilities of
the Fund are translated into U.S. dollars at the exchange rates available
at twelve noon Eastern Time. Purchases and sales of investment securities,
income receipts and expense payments are translated into U.S. dollars at
the prevailing exchange rate on the respective dates of such transactions.
The Fund does not isolate that portion of the results of changes in foreign
currency exchange rates from the fluctuations arising from changes in the
market prices of securities held at period end. Net realized foreign
currency gains and losses result from changes in exchange rates, including
foreign currency gains and losses between trade date and settlement date on
investment securities transactions, foreign currency transactions and the
difference between the amounts of interest and dividends recorded on the
books of the Fund and the amount actually received. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between
the initial trade date and subsequent sale trade date is included in
realized gains and losses on investment securities sold.
FORWARD FOREIGN CURRENCY CONTRACTS
Edinburgh Overseas Equity Fund may enter into forward foreign currency
exchange contracts. Forward foreign currency contracts are valued at the
forward rate and are marked-to-market daily. The change in market value is
recorded by the Fund as an unrealized gain or loss. When the contract is
closed or delivery is taken, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it was
opened and the value of the contract at settlement date.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's securities, but it does
establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts can limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential
gain that might result should the value of the currency increase. In
addition, the Fund could be exposed to risks if the counterparties to the
contracts are unable to meet the terms of their contracts.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Realized gains
or losses from securities sold are recorded on the identified cost basis.
Interest income is recorded on the accrual basis and consists
M FUND, INC.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
- - --------------------------------------------------------------------------------
of interest accrued and, if applicable, discount earned less premiums
amortized. Dividend income is recorded on the ex-dividend date, except that
certain dividends from foreign securities are recorded as soon as the Fund
is informed of the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Each Fund declares and pays dividends from net investment income, if any,
and distributes net short-term capital gains, if any, on an annual basis.
Each Fund also distributes, at least annually, substantially all of the
long-term capital gains in excess of available capital losses, if any,
which it realizes for each taxable year. Income distributions and capital
gain distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments of income and gains
on various investment securities held by each Fund, timing differences and
differing characterization of distributions made by each Fund. Permanent
differences relating to shareholder distributions will result in
reclassifications to paid-in capital.
FEDERAL INCOME TAXES
It is the policy of the Funds to qualify as a regulated investment
company, by complying with the requirements under Subchapter M of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and by distributing substantially all of its earnings
to its shareholders. Therefore, no provision for federal income tax is
necessary.
2. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into an investment advisory agreement (the
"Advisory Agreement") with M Financial Investment Advisers, Inc.(the
"Adviser"). The Advisory Agreement provides for the Funds to pay the
Adviser a monthly fee at an annual rate of the value of each Fund's average
daily net assets as follows:
<TABLE>
<CAPTION>
FUND TOTAL ADVISORY FEES
-------------------------------------------- ------------------------------------------------------
<S> <C>
Edinburgh Overseas Equity Fund 1.05% on the first $10 million
0.90% on the next $15 million
0.75% on the next $75 million
0.60% on amounts above $100 million
Turner Core Growth Fund 0.45%
Frontier Capital Appreciation Fund 0.90%
Enhanced U.S. Equity Fund 0.55% on the first $25 million
0.45% on the next $75 million
0.30% on amounts above $100 million
</TABLE>
M FUND, INC.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
- - --------------------------------------------------------------------------------
The Adviser has engaged Edinburgh Fund Managers Plc., Turner Investment
Partners, Inc., Frontier Capital Management Company, Inc., and Franklin
Portfolio Associates Trust to act as sub-advisers to provide day to day
portfolio management for the Edinburgh Overseas Equity Fund, Turner Core
Growth Fund, Frontier Capital Appreciation Fund and Enhanced U.S. Equity
Fund, respectively.
The Adviser has voluntarily undertaken to waive or otherwise reimburse the
Edinburgh Overseas Equity Fund, Turner Core Growth Fund, Frontier Capital
Appreciation Fund and Enhanced U.S. Equity Fund for their operating
expenses, exclusive of advisory fees, brokerage or other portfolio
transaction expenses or expenses of litigation, indemnification, taxes or
other extraordinary expenses, to the extent that they exceed 0.25% of the
average daily net assets of the Fund through December 31, 1996.
No officer, director or employee of the Adviser, or sub-advisers receives
any compensation from the Company for serving as a director or officer of
the Company. The Company pays each Director who is not any officer, or
employee of the Advisor and their affiliates $8,000 per annum plus $500 per
meeting attended and reimburses each such Director for travel and
out-of-pocket expenses.
3. PURCHASES AND SALES OF SECURITIES
Costs of purchases and proceeds from sales of investment securities,
excluding U.S. Government Securities and short-term investments, for the
period January 4, 1996 through April 30, 1996, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------------- -----------------
<S> <C> <C>
Edinburgh Overseas Equity Fund $ 2,315,503 $ 311,254
Turner Core Growth Fund 1,508,305 452,932
Frontier Capital Appreciation Fund 1,286,555 387,707
Enhanced U.S. Equity Fund 956,471 7,300
</TABLE>
For the period January 4, 1996 through April 30, 1996, aggregated gross
unrealized appreciation for all securities in which there is an excess of
value over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were as
follows:
<TABLE>
<CAPTION>
TAX BASIS TAX BASIS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------------- ------------------ -----------------------
<S> <C> <C> <C>
Edinburgh Overseas Equity Fund $ 101,729 $ (28,107) $ 73,622
Turner Core Growth Fund 119,498 (17,258) 102,240
Frontier Capital Appreciation Fund 189,384 (12,011) 177,373
Enhanced U.S. Equity Fund 111,854 (13,168) 98,686
</TABLE>
M FUND, INC.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
- - --------------------------------------------------------------------------------
4. SHARES OF BENEFICIAL INTEREST
For the period January 4, 1996 through April 30, 1996 an unlimited number
of shares of beneficial interest without par value were authorized. Changes
in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
EDINBURGH OVERSEAS TURNER CORE
EQUITY FUND GROWTH FUND
----------------------------- --------------------------
For the period For the period
January 4, 1996 - January 4, 1996 -
April 30, 1996(a) April 30, 1996(a)
----------------------------- --------------------------
<S> <C> <C>
Shares sold 209,139 116,914
Shares repurchased (72) (52)
----------------------------- --------------------------
Net increase 209,067 116,862
Fund shares:
Beginning of year 4,000 2,000
----------------------------- --------------------------
End of year 213,067 118,862
============================= ==========================
</TABLE>
<TABLE>
<CAPTION>
FRONTIER CAPITAL ENHANCED U.S.
APPRECIATION FUND EQUITY FUND
--------------------------- -------------------------------
For the period For the period
January 4, 1996 - January 4, 1996 -
April 30, 1996(a) April 30, 1996(a)
--------------------------- -------------------------------
<S> <C> <C>
Shares sold 110,954 98,000
Shares repurchased (9) 0
--------------------------- -------------------------------
Net increase 110,945 98,000
Fund shares:
Beginning of year 2,000 2,000
--------------------------- -------------------------------
End of year 112,945 100,000
=========================== ===============================
</TABLE>
(a) The Funds commenced operations on January 4, 1996.
M FUND, INC.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
- - --------------------------------------------------------------------------------
5. ORGANIZATION COSTS
Each Fund has borne all costs in connection with its organization. Such
costs are being amortized on the straight-line method over a period of five
years from the commencement of operations for each Fund. In the event that
any of the initial shares of the Funds are redeemed during such
amortization period, the Funds will be reimbursed for any unamortized costs
in the same proportion as the number of shares redeemed bears to the number
of initial shares held at the time of redemption. The organization expenses
payable represents a liability to an affiliated company.
6. FINANCIAL INSTRUMENTS
Edinburgh Overseas Equity Fund regularly trades financial instruments with
off-balance sheet risk in the normal course of its investing activities to
assist in managing exposure to market risks, such as foreign currency
exchange rates. These financial instruments include forward currency
exchange contracts.
The notional or contractual amounts of these instruments represent the
investments the Funds have in particular classes of financial instruments
and do not necessarily represent the amounts potentially subject to risk.
The measurement of the risk associated with these instruments is meaningful
only when all related and offsetting transactions are considered. The
forward foreign currency contracts at April 30, 1996 were:
Edinburgh Overseas Equity Fund
Contracts to Sell:
<TABLE>
<CAPTION>
Units of In
Settlement Date Deliver Currency Exchange For Appreciation
--------------- ------- -------- ------------ ------------
<S> <C> <C> <C> <C>
05/06/96 Malaysian Ringgit 254,785 $102,163 $197
------------------
$197
==================
</TABLE>
7. CONCENTRATION
At April 30, 1996, a substantial portion of the Edinburgh Overseas Equity
Fund's net assets consist of securities denominated in foreign currencies.
Changes in currency exchange rates will affect the value of and investment
income from such securities. Foreign securities are subject to greater
price volatility, more limited capitalization and liquidity, and higher
rates of inflation than securities of companies based in the United States.
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Financial Statements included in the Prospectus
constituting Part A of this Registration Statement
Financial Highlights for the period January 4, 1996
(commencement of operations) to April 30, 1996
(unaudited)
(2) Financial Statements included in the Statement of
Additional Information constituting Part B of this
Registration Statement (Unaudited)
Portfolio of Investments at April 30, 1996
Statement of Assets and Liabilities at April 30, 1996
Statement of Operations for the period January 4,
1996 (commencement of operations) to April
30, 1996
Statement of Changes in Net Assets for the period
January 4, 1996 (commencement of operations)
to April 30, 1996
Financial Highlights for the period January 4, 1996
(commencement of operations) to April 30, 1996
Notes to Financial Statements
Financial Statements included in the Statement of
Additional Information constituting Part B of this
Registration Statement (Audited)
Report of Independent Accountants as of January 2,
1996 Statements of Assets and Liabilities as of
January 2, 1996 Notes to Statements of Assets and
Liabilities as of January 2, 1996
(b) Exhibits:
(1) Articles of Incorporation of M Fund, Inc./1/
(2) By-Laws of M Fund, Inc./1/
(3) None.
(4) None.
(5) (A) Investment Advisory Agreement between M Fund, Inc.
and M Financial Investment Advisers, Inc./1/
C-1
(B) Investment Sub-Advisory Agreements between M
Financial Investment Advisers, Inc. and each of the
following:
(i) Edinburgh Fund Managers plc;/2/
(ii) Turner Investment Partners, Inc.;/2/
(iii) Frontier Capital Management Company, Inc.;/2/
and
(iv) Franklin Portfolio Associates Trust./2/
(6) Form of Participation Agreement between M Fund, Inc. and
Participating Insurance Companies./1/
(7) None.
(8) Custodian Agreement between M Fund, Inc. and Investors
Bank & Trust Company./2/
(9) (A) Transfer Agency and Service Agreement between M Fund,
Inc. and Investors Bank & Trust Company./2/
(B) Administration Agreement between M Fund, Inc. and
Investors Bank & Trust Company./2/
(10) Opinion and Consent of counsel as to the Legality of the
Securities Being Issued./2/
(11) (A) Consent of Sutherland, Asbill & Brennan./3/
(B) Consent of Coopers & Lybrand L.L.P./3/
(12) None.
(13) None.
(14) None.
(15) None.
C-2
(16) None.
(17) Financial Data Schedules./3/
(18) None.
(19) Powers of Attorney./2/
- - --------------------
1 Incorporated herein by reference to Registrant's initial registration
statement filed with the Securities and Exchange Commission on August 7, 1995
(File No. 33-95472).
2 Incorporated herein by reference to Pre-Effective Amendment No. 1 to
Registrant's initial registration statement filed with the Securities and
Exchange Commission on December 21, 1995 (File No. 33-95472).
3 Filed herewith.
C-3
Item 25. Persons Controlled by or Under Common Control with Registrant.
M Fund, Inc. does not concede that it is controlled by its investment
adviser. Nevertheless, in the event of such control, the following would be
under common control.
M Financial Investment Advisers, Inc., a Colorado corporation (the
"Adviser"), is a wholly-owned subsidiary of Management Partnership. Management
Partnership is a general partnership, doing business as "M Financial Group". See
"MANAGEMENT - Investment Adviser" in Part A. A majority interest in Management
Partnership is owned by M Corporation, a Colorado corporation, of which 50% is
owned by each of Ellison C. Morgan and Mark I. Solomon. The remaining interests
in Management Partnership are owned, either directly or through certain
controlled corporations (e.g., PWM Management Service, Inc. and Summerville
Company) by Messrs. Carl G. Mammel (15.82%), Peter W. Mullin (22.93%), and
Thomas N. Spitzer (2.00%). Mr. Mullin serves as a director of M Fund, Inc.
M Life Insurance Company is controlled by Management Partnership by
reason of the partnership's ownership of all of the outstanding shares of M
Life's Class B Common Stock and by reason of the direct or indirect ownership by
Management Partnership's partners of all of the outstanding shares of certain
series of M Life's Class A Common Stock. (Each partner of Management Partnership
disclaims beneficial ownership of the shares of M Life's Class A Common Stock
held by each other partner.)
Item 26. Number of Holders of Securities.
<TABLE>
<CAPTION>
Number of Record Holders
Title of Class As of May 31, 1996
-------------- ------------------
<S> <C>
Edinburgh Overseas Equity Fund 4
Turner Core Equity Fund 4
Frontier Capital Appreciation Fund 4
Enhanced U.S. Equity Fund 1
</TABLE>
Item 27. Indemnification.
Article X, "Indemnification", of the Articles of Incorporation of M
Fund, Inc. provides as follows:
The Corporation shall indemnify its officers and directors
to the fullest extent permitted by law.
Article VIII, "Indemnification", of the By-Laws of M Fund, Inc.
provides as follows:
C-4
Section 1. Every person who is or was a director, officer
or employee of the Corporation or of any other corporation which he or
she served at the request of the Corporation and in which the
Corporation owns or owned shares of capital stock or of which it is or
was a creditor shall have a right to be indemnified by the Corporation
to the full extent permitted by applicable law, against all liability,
judgments, fines, penalties, settlements and reasonable expenses
incurred by him in connection with or resulting from any threatened or
actual claim, action, suit or proceeding, whether criminal, civil, or
administrative, in which he or she may become involved as a party or
otherwise by reason of being or having been a director, officer or
employee, except as provided in Article VIII, Sections 2 and 3 of these
By-laws.
Section 2. Disabling Conduct. No such director, officer or
employee shall be indemnified for any liabilities or expenses arising
by reason of "disabling conduct", whether or not there is an
adjudication of liability. "Disabling conduct" means willful
misfeasance, bad faith, gross negligence, or reckless disregard of the
duties involved in the conduct of office.
Whether any such liability arose out of disabling conduct
shall be determined: (a) by a final decision on the merits (including,
but not limited to, a dismissal for insufficient evidence of any
disabling conduct) by a court or other body, before whom the proceeding
was brought that the person to be indemnified ("indemnitee") was not
eligible for indemnity because the liability arose by reason of
disabling conduct; or (b) in the absence of such a decision, by a
reasonable determination, based upon a review of the facts, that such
person was not eligible for indemnity because the liability arose by
reason of disabling conduct, (i) by the vote of a majority of a quorum
of directors who are neither interested persons of the Corporation nor
parties to the action, suit, or proceeding in question ("disinterested,
non-party directors"), or (ii) by independent legal counsel in a
written opinion if a quorum of disinterested, non-party directors so
directs or if such quorum is not obtainable, or (iii) by majority vote
of the stockholders of the Corporation, or (iv) by any other reasonable
and fair means not inconsistent with any of the above.
The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a
presumption that any liability or expense arose by reason of disabling
conduct.
Section 3. Directors' Standards of Conduct. No person who
is or was a director shall be indemnified under this Article VIII for
any liabilities or expenses incurred by reason of service in that
capacity if an act or omission of the director was material to the
matter giving rise to the threatened or actual claim, action, suit or
proceeding; and such act or omission constituted disabling conduct.
C-5
Section 4. Expenses Prior to Determination. Any
liabilities or expenses of the type described in Article VIII, Section
1 may be paid by the Corporation in advance of the final disposition of
the claim, action, suit or proceeding, as authorized by the directors
in the specific case, (a) upon receipt of a written affirmation by the
indemnitee of his or her good faith belief that his or her conduct met
the standard of conduct necessary for indemnification as authorized by
this Article VIII, Section 2; (b) upon receipt of a written undertaking
by or on behalf of the indemnitee to repay the advance, unless it shall
be ultimately determined that such person is entitled to
indemnification; and (c) provided that (i) the indemnitee shall provide
security for that undertaking, or (ii) the Corporation shall be insured
against losses arising by reason of any lawful advances, or (iii) a
majority of a quorum of disinterested, non-party directors, or
independent legal counsel in a written opinion, shall determine, based
on a review of readily available facts (as opposed to a full trial-type
inquiry), that there is reason to believe the indemnitee ultimately
will be found entitled to indemnification.
A determination pursuant to subparagraph (c) (iii) of this
Article VIII, Section 40 shall not prevent the recovery from any
indemnitee of any amount advanced to such person as indemnification if
such person is subsequently determined not to be entitled to
indemnification; nor shall a determination pursuant to said
subparagraph prevent the payment of indemnification if such person is
subsequently found to be entitled to indemnification.
Section 5. Provisions Not Exclusive. The indemnification
provided by this Article VIII shall not be deemed exclusive of any
rights to which those seeking indemnification may be entitled under any
law, agreement, vote of stockholders, or otherwise.
Section 6. General. No indemnification provided by this
Article shall be inconsistent with the 1940 Act or the Securities Act
of 1933. Any indemnification provided by this Article shall continue as
to a person who has ceased to be a director, officer, or employee, and
shall inure to the benefit of the heirs, executors and administrators
of such person. In addition, no amendment, modification or repeal of
this Article shall adversely affect any right or protection of an
indemnitee that exists at the time of such amendment, modification or
repeal.
* * *
C-6
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 (the "1933 Act") may be permitted to Directors, officers and
controlling persons of M Fund, Inc. pursuant to the foregoing provisions, or
otherwise, M Fund, Inc. has been advised that in the opinion of the SEC such
indemnification is against public policy as expressed in the 1933 Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by M Fund, Inc. of expenses incurred or
paid by a Director, officer or controlling person of M Fund, Inc. in the
successful defense of any action, suit or proceeding) is asserted by such
Director, officer or controlling person in connection with the securities being
registered, M Fund, Inc. will, unless in the opinion of its counsel, the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the 1933 Act and will be governed by the final
adjudication of such issue.
Item 28. Business and Other Connections of the Investment Adviser.
Any other business, profession, vocation or employment of a substantial
nature in which each investment adviser of M Fund, Inc., and each director,
officer or partner of any such investment adviser, is or has been, at any time
during the past two fiscal years, engaged for his or her own account or in the
capacity of director, officer, employee, partner or trustee is described in each
investment adviser's Form ADV as currently on file with the SEC, the text of
which is hereby incorporated by reference
<TABLE>
<CAPTION>
Investment Adviser File No.
------------------ --------
<S> <C>
M Financial Investment Advisers, Inc. 801-50553
Edinburgh Fund Managers plc 801-20791
Turner Investment Partners, Inc. 801-36220
Frontier Capital Management Company, Inc. 801-15724
Franklin Portfolio Associates Trust 801-17057
</TABLE>
Item 29. Principal Underwriters.
(Not applicable)
Item 30. Location of Accounts and Records.
All accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the rules thereunder by
M Fund, Inc. will be maintained by the following offices of M Fund, Inc. or
Investors Bank & Trust Company:
M Fund, Inc. Investors Bank & Trust Company
River Park Center ATTN: Mutual Fund Administration
205 S.E. Spokane Street 89 South Street
Portland, Oregon 97202 Boston, Massachusetts 02111
C-7
Item 31. Management Services.
(Not applicable)
Item 32. Undertakings
(a) (Not applicable)
(b) (Not applicable)
(c) (Not applicable)
C-8
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, M Fund, Inc. certifies that it meets all of the
requirements for effectiveness of this Post-Effective Amendment No. 2 to the
Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933
and has duly caused this Post-Effective Amendment No. 2 to the Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Portland and the State of Oregon, on the 7th day of
June, 1996.
M FUND, INC.
REGISTRANT
By: /s/ Daniel F. Byrne
--------------------
Daniel F. Byrne
President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 2 to the Registration Statement has been signed
below by the following persons in the capacities indicated and on the dates
indicated.
<TABLE>
<CAPTION>
Name Title Date
- - ---- ----- ----
<S> <C> <C>
/s/ Daniel F. Byrne President (Principal June 7, 1996
- - ------------------- Executive Officer)
Daniel F. Byrne
/s/ David W. Schutt Secretary and Treasurer June 7, 1996
- - ------------------- (Principal Financial and
David W. Schutt Accounting Officer)
* Director June 7, 1996
- - -------------------
Peter W. Mullin
* Director June 7, 1996
- - -------------------
David M. Spungen
* Director June 7, 1996
- - -------------------
Philip Halpern
* Director June 7, 1996
- - -------------------
Neil Goldschmidt
* Director June 7, 1996
- - -------------------
Gerald Bidwell
* Executed by /s/ Daniel F. Byrne (Daniel F. Byrne) on behalf of those
-------------------
indicated pursuant to Power of Attorney.
</TABLE>
EXHIBIT
INDEX
Exhibit
Number Description of Exhibit
- - ------ ----------------------
11(A) Consent of Sutherland, Asbill & Brennan
11(B) Consent of Coopers & Lybrand L.L.P.
27 Financial Data Schedules
Exhibit 11(A)
Sutherland, Asbill & Brennan
June 17, 1996
Board of Directors
M Fund, Inc.
River Park Center
205 S.E. Spokane Street
Portland, Oregon 97202
Ladies and Gentlemen:
We hereby consent to the reference to our name under the caption "Legal
Matters" in the Statement of Additional Information incorporated by reference in
Post-Effective Amendment No. 2. to the registration statement on Form N-1A for
the M Fund, Inc. (File No. 33-95472). In giving this consent, we do not admit
that we are in the category of persons whose consent is required under Section 7
of the Securities Act of 1933.
Very truly yours,
SUTHERLAND, ASBILL & BRENNAN
By: /s/ Frederick R. Bellamy
-------------------------
Frederick R. Bellamy
Exhibit 11(B)
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statement on
Form N-1A (File No. 33-95472/811-9082)Post-Effective Amendment No. 2, of our
report dated January 3, 1996, on our audits of the financial statements of
Edinburgh Overseas Equity Fund, Turner Core Growth Fund, Frontier Capital
Appreciation Fund and Enhanced U.S. Equity Fund.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Portland, Oregon
June 17, 1996
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from M Fund Inc.
financial statements at April 30, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 001
<NAME> Edinburgh Overseas Equity Fund
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 1,993,645
<INVESTMENTS-AT-VALUE> 2,067,267
<RECEIVABLES> 46,724
<ASSETS-OTHER> 175,167
<OTHER-ITEMS-ASSETS> 97,476
<TOTAL-ASSETS> 2,386,634
<PAYABLE-FOR-SECURITIES> 151,030
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 31,426
<TOTAL-LIABILITIES> 182,456
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,133,412
<SHARES-COMMON-STOCK> 213,067
<SHARES-COMMON-PRIOR> 4,000
<ACCUMULATED-NII-CURRENT> 6,471
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (9,339)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 73,634
<NET-ASSETS> 2,204,178
<DIVIDEND-INCOME> 10,742
<INTEREST-INCOME> 4,243
<OTHER-INCOME> 0
<EXPENSES-NET> 8,514
<NET-INVESTMENT-INCOME> 6,471
<REALIZED-GAINS-CURRENT> (9,339)
<APPREC-INCREASE-CURRENT> 73,634
<NET-CHANGE-FROM-OPS> 70,766
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 209,139
<NUMBER-OF-SHARES-REDEEMED> 72
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,164,178
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6,916
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 57,072
<AVERAGE-NET-ASSETS> 2,061,808
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0.32
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.35
<EXPENSE-RATIO> 1.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from M Fund Inc.
financial statements at April 30, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 002
<NAME> Turner Core Growth Fund
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 1,076,056
<INVESTMENTS-AT-VALUE> 1,178,296
<RECEIVABLES> 57,939
<ASSETS-OTHER> 33,928
<OTHER-ITEMS-ASSETS> 97,476
<TOTAL-ASSETS> 1,367,639
<PAYABLE-FOR-SECURITIES> 15,461
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 25,829
<TOTAL-LIABILITIES> 41,287
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,201,056
<SHARES-COMMON-STOCK> 118,862
<SHARES-COMMON-PRIOR> 2,000
<ACCUMULATED-NII-CURRENT> 2,372
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20,684
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 102,240
<NET-ASSETS> 1,326,352
<DIVIDEND-INCOME> 3,042
<INTEREST-INCOME> 1,872
<OTHER-INCOME> 0
<EXPENSES-NET> 2,542
<NET-INVESTMENT-INCOME> 2,372
<REALIZED-GAINS-CURRENT> 20,684
<APPREC-INCREASE-CURRENT> 102,240
<NET-CHANGE-FROM-OPS> 125,296
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 116,914
<NUMBER-OF-SHARES-REDEEMED> 52
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,306,352
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,666
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 44,074
<AVERAGE-NET-ASSETS> 1,127,278
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> 1.14
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.16
<EXPENSE-RATIO> 0.70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from M Fund Inc.
financial statements at April 30, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 003
<NAME> Frontier Capital Appreciation Fund
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 925,894
<INVESTMENTS-AT-VALUE> 1,103,267
<RECEIVABLES> 64,954
<ASSETS-OTHER> 167,435
<OTHER-ITEMS-ASSETS> 97,476
<TOTAL-ASSETS> 1,433,132
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 81,402
<TOTAL-LIABILITIES> 81,402
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,148,946
<SHARES-COMMON-STOCK> 112,945
<SHARES-COMMON-PRIOR> 2,000
<ACCUMULATED-NII-CURRENT> (1,635)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 27,046
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 177,373
<NET-ASSETS> 1,351,730
<DIVIDEND-INCOME> 903
<INTEREST-INCOME> 1,478
<OTHER-INCOME> 0
<EXPENSES-NET> 4,016
<NET-INVESTMENT-INCOME> (1,635)
<REALIZED-GAINS-CURRENT> 27,046
<APPREC-INCREASE-CURRENT> 177,373
<NET-CHANGE-FROM-OPS> 202,784
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 110,954
<NUMBER-OF-SHARES-REDEEMED> 9
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,331,730
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,169
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 45,419
<AVERAGE-NET-ASSETS> 1,084,221
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.01)
<PER-SHARE-GAIN-APPREC> 1.98
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.97
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from M Fund Inc.
financial statements at April 30, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 004
<NAME> Enhanced U.S. Equity Fund
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> APR-30-1996
<INVESTMENTS-AT-COST> 949,368
<INVESTMENTS-AT-VALUE> 1,048,054
<RECEIVABLES> 41,495
<ASSETS-OTHER> 97,329
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,186,878
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 83,580
<TOTAL-LIABILITIES> 83,580
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,000,000
<SHARES-COMMON-STOCK> 100,000
<SHARES-COMMON-PRIOR> 2,000
<ACCUMULATED-NII-CURRENT> 4,415
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 197
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 98,686
<NET-ASSETS> 1,103,298
<DIVIDEND-INCOME> 1,269
<INTEREST-INCOME> 5,906
<OTHER-INCOME> 0
<EXPENSES-NET> 2,760
<NET-INVESTMENT-INCOME> 4,415
<REALIZED-GAINS-CURRENT> 197
<APPREC-INCREASE-CURRENT> 98,686
<NET-CHANGE-FROM-OPS> 103,298
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 98,000
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,083,298
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,927
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 44,650
<AVERAGE-NET-ASSETS> 1,070,474
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.04
<PER-SHARE-GAIN-APPREC> 0.99
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.03
<EXPENSE-RATIO> 0.80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
