-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F18DKX5Uo+dyMg3QbwB7FRZehR7lR8FkFbrmo8QKfvDdK+NLiXDYAfDHklyBrEJ3 RTSdT9e2l4t2wAQv8dPiTQ== 0000950124-03-003822.txt : 20031121 0000950124-03-003822.hdr.sgml : 20031121 20031121165023 ACCESSION NUMBER: 0000950124-03-003822 CONFORMED SUBMISSION TYPE: N-CSR/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20031121 EFFECTIVENESS DATE: 20031121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MUNDER FRAMLINGTON FUNDS TRUST CENTRAL INDEX KEY: 0001026148 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-07897 FILM NUMBER: 031018685 BUSINESS ADDRESS: STREET 1: MUNDER FUNDS STREET 2: 480 PIERCE STREET CITY: BIRMINGHAM STATE: MI ZIP: 48009 BUSINESS PHONE: 2486479200 MAIL ADDRESS: STREET 1: MUNDER FUNDS STREET 2: 480 PIERCE STREET CITY: BIRMINGHAM STATE: MI ZIP: 48009 N-CSR/A 1 k81098nvcsrza.txt AMENDMENT TO FORM N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR AMENDMENT CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-07897 ---------------------------------------------- THE MUNDER FRAMLINGTON FUNDS TRUST ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) 480 PIERCE STREET BIRMINGHAM, MICHIGAN 48009 ------------------------------------------------------------------------------ (Address of principal executive offices)(Zip code) (Name and Address of Agent for Service) Copy to: STEPHEN SHENKENBERG JANE KANTER 480 PIERCE STREET DECHERT LLP BIRMINGHAM, MICHIGAN 48009 1775 I STREET, N.W. WASHINGTON, D.C. 20006 Registrant's telephone number, including area code: (248) 647-9200 Date of fiscal year end: June 30 Date of reporting period: June 30, 2003 ITEM 1: REPORT TO SHAREHOLDER ANNUAL REPORT JUNE 30, 2003 MUNDER HEALTHCARE FUND Class A, B, C, K & Y Shares FAMILY OF FUNDS (covered in separate annual reports) LARGE-CAP EQUITY INTERNATIONAL Multi-Season Growth International Growth Index 500 International Equity Large-Cap Value International Bond Emerging Markets MID- TO MICRO-CAP EQUITY TAXABLE INCOME MidCap Select Bond Small Company Growth Intermediate Bond Small-Cap Value U.S. Government Income Micro-Cap Equity TAX-FREE INCOME NICHE/SECTOR EQUITY Michigan Tax-Free Bond NetNet(R) Tax-Free Bond Future Technology Tax-Free Short & Intermediate Bond Healthcare Power Plus(R) MONEY MARKET Real Estate Equity Cash Investment Investment Tax-Free Money Market HYBRID Balanced --------------------------- Save paper and receive this document electronically. Sign up for electronic delivery at WWW.MUNDERFUNDS.COM/ EDELIVERY ---------------------------
(MUNDER FUNDS LOGO) THE MUNDER FUNDS LETTER TO SHAREHOLDERS DEAR FELLOW MUNDER FUND SHAREHOLDERS: The past year has been a difficult one for all of us who have assets invested in the stock market. The S&P 500(R) Index barely eked out a positive 0.25% return for the 12 months ending June 30. In terms of calendar quarters, the S&P 500(R) moved from a gut-wrenching low of -17.28% for the three months ended September 30, 2002 to a high of 15.40% for the quarter ended June 30, 2003. In contrast, the bond market provided a positive return in each calendar quarter, with the Lehman Brothers Aggregate Bond Index posting a 10.40% return for the year ending June 30. At Munder Capital Management, the investment advisor for The Munder Funds, we strive to provide the shareholders of each of our equity, fixed income and money market funds with a disciplined approach to investing, based on sound investment principles rather than the day-to-day fluctuations of the financial markets. Framlington Overseas Investment Management Limited, the U.K.-based sub-advisor to the Fund and an affiliate of Munder Capital, adheres to a similar investment philosophy. Also like Munder Capital, Framlington employs a team approach to the management of portfolios, with Framlington's portfolio managers assisted by a worldwide network of research analysts. On the following pages, you will find information and commentary on the relative and absolute performance of the Fund. If you have any questions about your current investments or any of The Munder Funds, please call your financial advisor. You may also contact the Funds at 1-800-4MUNDER or through our Web site at www.munder.com. Thank you for your confidence in The Munder Funds. We value the opportunity to work with you toward meeting your investment objectives. Very Truly Yours, -s- James C. Robinson James C. Robinson, President President, The Munder Funds Chairman and CEO, Munder Capital Management TABLE OF CONTENTS - -------------------------------------------------------------------------------- II Management's Discussion of Fund Performance IV Hypothetical and Total Returns 1 Portfolio of Investments 8 Statement of Assets and Liabilities 10 Statement of Operations 11 Statements of Changes in Net Assets 12 Statements of Changes in Net Assets -- Capital Stock Activity 14 Financial Highlights 19 Notes to Financial Statements 36 Report of Ernst & Young LLP, Independent Auditors
- -------------------------------------------------------------------------------- MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. ALL MUTUAL FUND SHARES INVOLVE CERTAIN RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. i MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE - -------------------------------------------------------------------------------- THE PERFORMANCE DATA CONTAINED IN THE FOLLOWING COMMENTARY IS BASED ON CLASS Y SHARES OF THE FUND AND THE PERFORMANCE FOR OTHER CLASSES OF SHARES WILL DIFFER. THE RETURNS FOR THE FUND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR UPON REDEMPTION OF FUND SHARES. PLEASE NOTE THAT ANY INDEX AGAINST WHICH THE FUND IS COMPARED IS NOT AN ACTUAL FUND AND NO EXPENSES ARE NETTED AGAINST ITS RETURNS. YOU CANNOT INVEST DIRECTLY IN AN INDEX. THE RETURNS FOR THE FUND ARE REPORTED AFTER THE DEDUCTION OF ALL EXPENSES. FUND HOLDINGS ARE SUBJECT TO CHANGE. A COMPLETE LIST OF FUND HOLDINGS AS OF JUNE 30, 2003 IS CONTAINED IN THE PORTFOLIO OF INVESTMENTS INCLUDED IN THIS REPORT. FUND MANAGERS: The Munder Healthcare Fund Team The Fund generated a 9.93% return for the year ended June 30, 2003, compared to the 7.98% return for the Russell 2000 Healthcare Index and the 9.86% median return for the Lipper universe of health/biotechnology mutual funds. The Fund has earned above-median returns for the one-month, three-month, six-month, nine-month, one-year and five-year time periods ended June 30. Although the Fund's holdings span a range of market capitalizations, the Fund has a smaller-cap bias. It is therefore greatly influenced by developments in the small- to mid-cap segment of the healthcare sector, as reflected in the performance of the Russell 2000 Healthcare Index. During the first half of the 12-month period ended June 30, the Fund struggled, as did the stocks in the Russell 2000 Healthcare Index. During those six months, the Fund posted a - -11.27% return, compared to the -16.38% return for the Russell 2000 Healthcare Index. One factor helping to boost the performance of the Fund during that period was the sale of the Fund's position in Tenet Healthcare before the company was investigated for boosting its profits on high cost patients by aggressive interpretation of reimbursement rules. The second half of the year ended June 30 was much more positive for small-cap healthcare stocks and for the Fund. The Fund generated a return of 23.90% for the period, more than offsetting the negative return posted during the first half of the year. The Russell 2000 Healthcare Index had a 29.14% return for this same six-month period. During this period, the Fund's relative performance was held back by the lower returns from its holdings in the services sector of the Fund. The Fund's exposure to generic drug manufacturers and specialty drugs had a more positive impact on returns. The performance of the Fund picked up, especially in April and May, as the biotechnology sector posted strong positive returns. Given the strong advances in the biotechnology sector, some of the larger positions were reduced. At the same time, we increased our holdings in some smaller-cap medical device stocks, including Given Imaging Ltd., Cyberonics, Inc. and RITA Medical Systems, Inc. Given Imaging Ltd. has developed a proprietary wireless imagining system for viewing the gastrointestinal tract. Cyberonics, Inc. provides an implantable medical device for the treatment of epilepsy and other neurological diseases. RITA Medical Systems, Inc. offers minimally invasive products to treat cancerous or benign tumors. ii [This Page Intentionally Left Blank] iii HYPOTHETICAL AND TOTAL RETURNS - -------------------------------------------------------------------------------- The following graph represents the performance of the Munder Healthcare Fund (the "Fund") since the inception of its oldest class of shares, Class Y shares. The chart following the line graph sets forth performance information and the growth of a hypothetical $10,000 investment for each class of shares offered by the Fund. Differing sales charges and expenses of classes not shown in the line graph will have an effect on performance. In addition, the information contained in the chart and table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or upon the redemption of Fund shares. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and principal value of any investment will fluctuate so that an investor's shares, upon redemption, may be worth more or less than original cost. Average annual total returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestment of dividends. MUNDER HEALTHCARE FUND CLASS Y SHARE HYPOTHETICAL ---------------------------------------------------------------- A HYPOTHETICAL ILLUSTRATION OF A $10,000 INITIAL INVESTMENT (GRAPHIC IMAGE)
Lipper MSCI World Russell 2000 Health/Biotechnology Class Y Index# Healthcare Index# Funds Average** ------- ------ ----------------- --------------- 12/31/1996 10,000 10,000 10,000 10,000 11,020 10,122 10,535 10,533 10,590 10,240 10,200 10,526 9,610 10,040 9,163 9,789 9,030 10,370 8,738 9,803 10,290 11,012 10,098 10,805 6/30/1997 10,890 11,563 10,392 11,428 11,120 12,097 10,481 11,776 11,120 11,290 10,657 11,463 12,340 11,905 11,884 12,494 11,699 11,280 11,246 12,115 11,649 11,482 10,988 12,151 11,639 11,623 11,029 12,159 11,848 11,949 10,817 12,461 12,598 12,759 11,704 13,139 12,948 13,300 11,983 13,569 12,938 13,432 11,743 13,684 12,138 13,265 10,799 13,208 6/30/1998 11,839 13,582 10,786 13,488 11,100 13,562 9,948 13,271 8,381 11,755 7,594 11,133 9,810 11,966 8,963 12,587 10,240 13,050 9,624 13,124 10,810 13,827 10,109 13,794 11,788 14,505 11,388 14,917 12,131 14,824 11,462 15,085 10,839 14,431 10,252 14,444 10,324 15,035 10,130 14,560 10,112 15,630 10,153 13,976 10,374 15,061 10,541 13,966 6/30/1999 10,606 15,766 11,295 14,587 10,839 15,720 11,338 14,708 11,314 15,695 10,982 15,104 11,394 15,544 10,765 14,237 11,101 16,354 10,293 14,800 12,645 16,817 11,440 15,676 16,399 18,181 13,453 17,174 19,932 17,141 15,488 18,842
iv 27,500 17,189 22,610 22,810 24,200 18,378 15,533 20,748 23,140 17,603 14,957 20,522 22,717 17,159 14,619 20,762 6/30/2000 28,822 17,739 18,410 24,684 28,973 17,242 17,874 23,993 33,252 17,806 20,562 26,622 34,918 16,861 21,109 27,762 33,590 16,581 20,328 27,215 28,732 15,576 18,092 25,881 30,671 15,830 19,690 27,204 28,930 16,137 18,993 25,076 25,657 14,775 18,007 24,216 21,120 13,807 15,855 21,306 23,451 14,832 17,758 23,080 25,233 14,648 18,708 24,059 6/30/2001 26,476 14,191 20,129 24,232 24,124 14,004 18,167 23,551 23,193 13,334 17,689 23,179 19,837 12,161 15,573 21,925 21,908 12,395 16,270 22,929 23,203 13,131 17,138 24,229 24,165 13,215 17,831 24,062 21,732 12,816 16,254 22,592 20,335 12,707 15,139 21,935 21,142 13,271 16,293 22,441 19,163 12,825 15,767 20,998 18,199 12,854 14,742 20,228 6/30/2002 16,905 12,077 13,386 18,486 15,400 11,060 11,690 17,859 15,400 11,083 11,472 17,615 14,385 9,866 11,029 16,896 14,841 10,596 11,220 17,617 15,732 11,169 11,989 18,017 14,997 10,630 11,193 17,271 14,925 10,309 10,840 17,232 13,952 10,133 10,418 16,822 14,532 10,105 11,027 17,486 15,579 11,008 12,193 18,455 17,744 11,642 14,134 20,090 6/30/2003 18,583 11,848 14,454 20,648
- ----------------------------------------------------------------------------------------------------------------- GROWTH OF A $10,000 INVESTMENT SINCE INCEPTION - ----------------------------------------------------------------------------------------------------------------- MSCI Russell 2000 Lipper Health/ Class and With Without World Healthcare Biotechnology Inception Date Load Load Index# Index# Funds Average** - ----------------------------------------------------------------------------------------------------------------- CLASS A $15,307* $16,201 $11,705 $13,720 $19,604 (2/14/97) - ----------------------------------------------------------------------------------------------------------------- CLASS B N/A $15,847 $11,705 $13,720 $19,604 (1/31/97) - ----------------------------------------------------------------------------------------------------------------- CLASS C N/A $16,772 $11,848 $14,454 $20,648 (1/13/97) - ----------------------------------------------------------------------------------------------------------------- CLASS K N/A $19,341 $11,801 $15,775 $21,094 (4/1/97) - ----------------------------------------------------------------------------------------------------------------- CLASS Y N/A $18,583 $11,848 $14,454 $20,648 (12/31/96) - -----------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS ----------------------------------------------------------------------------------- ONE ONE FIVE FIVE SINCE SINCE CLASS AND YEAR YEAR YEARS YEARS INCEPTION INCEPTION INCEPTION DATE W/LOAD W/OUT LOAD W/LOAD W/OUT LOAD W/LOAD W/OUT LOAD - --------------------------------------------------------------------------------------------------------- CLASS A (2/14/97) 3.58%* 9.62% 7.91%* 9.14% 6.91%* 7.86% CLASS B (1/31/97) 3.86%+ 8.86% 8.05%+ 8.34% N/A 7.44% CLASS C (1/13/97) 7.80%+ 8.80% N/A 8.31% N/A 8.33% CLASS K (4/1/97) N/A 9.63% N/A 9.13% N/A 11.13% CLASS Y (12/31/96) N/A 9.93% N/A 9.43% N/A 10.00%
* Reflects the deduction of the maximum sales charge of 5.50% for Class A shares. # The Morgan Stanley Capital International (MSCI) World Index is an unmanaged index that measures the common stock price movement in developed countries. The Russell 2000 Healthcare Index is an unmanaged index that measures the performance of those Russell 2000 companies (the bottom 2,000 based on capitalization of the 3,000 largest capitalized U.S. publicly-traded companies) within the healthcare sector. Index since inception comparative returns for Class A, Class B, Class C, Class K and Class Y shares of the Fund are as of 2/1/97, 2/1/97, 1/1/97, 4/1/97 and 1/1/97, respectively. ** The Lipper Health/Biotechnology Funds Average represents the average performance of a universe of mutual funds that have been in existence since the Fund's inception and are categorized by Lipper Analytical Services, Inc. under the same investment objective as the Fund. Lipper since inception comparative returns for Class A, Class B, Class C, Class K and Class Y shares of the Fund are as of 2/1/97, 2/1/97, 1/1/97, 4/1/97 and 1/1/97, respectively. v [This Page Intentionally Left Blank] vi MUNDER HEALTHCARE FUND Portfolio of Investments, June 30, 2003 - --------------------------------------------------------------------------------
SHARES VALUE - ---------------------------------------------------------------------------------- COMMON STOCKS -- 99.0% BIOTECHNOLOGY -- 35.2% 19,000 Abgenix, Inc.+ $ 199,310 400,000 Acambis Plc+ 2,439,682 44,000 Actelion Ltd.+ 2,936,372 10,000 Adolor Corporation+ 122,700 88,000 Alexion Pharmaceuticals, Inc.+ 1,500,400 56,500 Amgen, Inc.+ 3,753,860 120,000 Amylin Pharmaceuticals, Inc.+ 2,626,800 40,000 Aphton Corporation+ 329,600 123,400 Cambridge Antibody Technology Group Plc+ 1,070,832 84,000 Celgene Corporation+ 2,553,600 17,500 Cell Genesys, Inc.+ 151,200 100,000 Cell Therapeutics, Inc.+ 973,000 200,000 Cellegy Pharmaceuticals, Inc.+ 1,006,000 421,800 Celltech Group Plc+ 2,391,374 63,200 Cephalon, Inc.+ 2,601,312 106,000 CV Therapeutics, Inc.+ 3,143,960 300,000 Dendreon Corporation+ 1,782,000 137,855 DOV Pharmaceutical, Inc.+ 1,585,333 300,000 Dyax Corporation+ 1,224,000 371,075 Exelixis, Inc.+ 2,575,260 18,512 Genentech, Inc.+ 1,335,085 59,500 Gilead Sciences, Inc.+ 3,307,010 55,000 ICOS Corporation+ 2,021,250 7,300 ILEX Oncology, Inc.+ 141,693 165,000 Inspire Pharmaceuticals, Inc.+ 1,782,000 106,425 InterMune, Inc.+ 1,714,507 500,000 Introgen Therapeutics, Inc.+ 2,725,000 271,000 Isis Pharmaceuticals, Inc.+ 1,436,300 15,000 Kosan Biosciences, Inc.+ 88,500 468,250 La Jolla Pharmaceutical Company+ 1,531,178 290,525 Lexicon Genetics, Inc.+ 1,949,423 30,281 Martek Biosciences Corporation+ 1,300,266 109,500 Medicines Company+ 2,156,055 7,500 Myriad Genetics, Inc.+ 102,075 145,935 Neurochem, Inc.+ 1,506,981 60,200 Neurocrine Biosciences, Inc.+ 3,006,388 125,730 NPS Pharmaceuticals, Inc.+ 3,060,268 76,000 OSI Pharmaceuticals, Inc.+ 2,447,960 414,475 POZEN, Inc.+ 4,550,935
See Notes to Financial Statements. 1 MUNDER HEALTHCARE FUND Portfolio of Investments, June 30, 2003 (continued) - --------------------------------------------------------------------------------
SHARES VALUE - ---------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) BIOTECHNOLOGY (CONTINUED) 17,000 Protein Design Labs, Inc.+ $ 237,660 150,000 Telik, Inc.+ 2,410,500 43,375 Trimeris, Inc.+ 1,981,370 190,000 Vicuron Pharmaceuticals, Inc.+ 2,694,200 374,850 XOMA Ltd.+ 1,997,950 ------------ 80,451,149 ------------ BIOTECHNOLOGY - TOOLS -- 3.1% 35,817 Bio-Rad Laboratories, Inc.+ 1,982,471 455,200 Discovery Partners International+ 2,021,088 71,000 Fisher Scientific International, Inc.+ 2,477,900 125,000 Orchid Biosciences, Inc.+ 150,000 270,000 Transgenomic, Inc.+ 513,000 ------------ 7,144,459 ------------ DRUGS & DRUG DELIVERY -- 18.1% 30,000 Allergan, Inc. 2,313,000 50,000 American Pharmaceutical Partners, Inc.+ 1,695,000 19,059 Atrix Laboratories, Inc.+ 419,107 50,000 Biovail Corporation+ 2,353,000 80,000 CIMA Labs, Inc.+ 2,151,200 30,000 Connetics Corporation+ 449,100 62,500 Forest Laboratories, Inc.+ 3,421,875 250,000 Galen Holdings Plc 2,150,837 165,000 GlaxoSmithKline Plc+ 3,335,471 110,000 K-V Pharmaceutical Company, Class A+ 3,058,000 35,000 Medicis Pharmaceutical Corporation, Class A+ 1,984,500 70,000 Mylan Laboratories, Inc. 2,433,900 200,000 Nektar Therapeutics+ 1,846,000 130,000 Pfizer, Inc. 4,439,500 50,000 Pharmaceutical Resources, Inc.+ 2,433,000 186,650 SangStat Medical Corporation+ 2,443,249 76,000 Teva Pharmaceutical Industries Ltd., ADR 4,326,680 ------------ 41,253,419 ------------ MEDICAL DEVICES -- 22.3% 52,000 Advanced Neuromodulation Systems, Inc.+ 2,692,040 443,475 AeroGen, Inc.+ 243,911 140,000 American Medical Systems Holdings, Inc.+ 2,361,800 410,250 Axis-Shield Plc+ 1,253,472
See Notes to Financial Statements. 2 - --------------------------------------------------------------------------------
SHARES VALUE - ---------------------------------------------------------------------------------- MEDICAL DEVICES (CONTINUED) 65,000 Biomet, Inc. $ 1,862,900 40,000 Biosite Diagnostics, Inc.+ 1,924,000 45,000 Boston Scientific Corporation+ 2,749,500 50,000 Cochlear Ltd.+ 1,084,392 57,500 Cyberonics, Inc.+ 1,236,825 177,500 Cytyc Corporation+ 1,867,300 215,700 Endocardial Solutions, Inc.+ 1,320,084 186,000 Endocare, Inc.+ 762,600 150,000 EPIX Medical, Inc.+ 2,122,500 107,083 Given Imaging Ltd.+ 904,851 560,000 Gyrus Group Plc+ 1,804,968 100,000 Integra LifeSciences Holdings+ 2,638,000 165,000 Kyphon, Inc.+ 2,494,800 289,350 MedSource Technologies, Inc.+ 1,229,737 55,000 Medtronic, Inc. 2,638,350 35,470 Nobel Biocare Holding AG+ 2,373,677 56,585 Regeneration Technologies, Inc.+ 752,015 60,000 ResMed, Inc.+ 2,352,000 400,000 RITA Medical Systems, Inc.+ 1,400,000 59,700 SurModics, Inc.+ 1,820,850 178,925 TheraSense, Inc.+ 1,789,250 70,000 Wilson Greatbatch Technologies, Inc.+ 2,527,000 132,650 Wright Medical Group, Inc.+ 2,520,350 50,000 Zimmer Holdings, Inc.+ 2,252,500 ------------ 50,979,672 ------------ MEDICAL SERVICES -- 20.3% 91,162 Accredo Health, Inc.+ 1,987,332 60,000 AdvancePCS+ 2,293,800 40,000 AmerisourceBergen Corporation 2,774,000 37,000 Anthem, Inc.+ 2,854,550 150,000 Caremark Rx, Inc.+ 3,852,000 50,454 Centene Corporation+ 1,962,661 87,744 Community Health Systems, Inc.+ 1,692,582 80,000 CTI Molecular Imaging, Inc.+ 1,512,800 72,000 HCA, Inc. 2,306,880 260,425 HealthStream, Inc.+ 671,896 55,000 Henry Schein, Inc.+ 2,878,700 74,475 ICON Plc, ADR+ 2,369,794 83,145 Laboratory Corporation of America Holdings+ 2,506,822
See Notes to Financial Statements. 3 MUNDER HEALTHCARE FUND Portfolio of Investments, June 30, 2003 (continued) - --------------------------------------------------------------------------------
SHARES VALUE - ---------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MEDICAL SERVICES (CONTINUED) 100,000 Omnicare, Inc. $ 3,379,000 60,000 Pediatrix Medical Group, Inc.+ 2,139,000 85,000 Pharmaceutical Product Development, Inc.+ 2,442,050 100,000 Select Medical Corporation+ 2,483,000 25,503 The Advisory Board Company+ 1,033,381 120,000 United Surgical Partners International, Inc.+ 2,710,800 50,000 UnitedHealth Group, Inc. 2,512,500 379 WebMD Corporation+ 4,105 ------------ 46,367,653 ------------ TOTAL COMMON STOCKS (Cost $259,243,271) 226,196,352 ------------ WARRANTS -- 0.0%# (Cost $0) BIOTECHNOLOGY -- 0.0%# 2,400 AVANT Immunotherapeutics, Inc., expires 8/21/03, (exercise price: $6.00)+ 288 ------------ PRINCIPAL AMOUNT - ---------- REPURCHASE AGREEMENT -- 1.0% (Cost $2,151,000) $2,151,000 Agreement with State Street Bank and Trust Company, 0.980% dated 06/30/2003, to be repurchased at $2,151,059 on 07/01/2003, collateralized by $1,960,000 FNMA, 5.250% maturing 4/15/2007 (value $2,195,200) 2,151,000 ------------
See Notes to Financial Statements. 4 - --------------------------------------------------------------------------------
VALUE - ----------------------------------------------------------------------------------- TOTAL INVESTMENTS (Cost $261,394,271) 100.0% $228,347,640 OTHER ASSETS AND LIABILITIES (NET) 0.0# 55,001 ----- ------------ NET ASSETS 100.0% $228,402,641 ===== ============
- ------------ + Non-income producing security. # Amount represents less than 0.1% of net assets. ABBREVIATIONS: ADR -- American Depositary Receipt FNMA -- Federal National Mortgage Association See Notes to Financial Statements. 5 MUNDER HEALTHCARE FUND Portfolio of Investments, June 30, 2003 (continued) - -------------------------------------------------------------------------------- At June 30, 2003 the country diversification of the Munder Healthcare Fund was as follows:
% OF NET ASSETS VALUE ---------------------------- COMMON STOCK: United States....................................... 84.0% $191,896,019 United Kingdom...................................... 6.3 14,446,635 Switzerland......................................... 2.3 5,310,048 Israel.............................................. 2.3 5,231,531 Canada.............................................. 1.7 3,859,981 Ireland............................................. 1.0 2,369,795 Bermuda............................................. 0.9 1,997,951 Australia........................................... 0.5 1,084,392 ----- ------------ TOTAL COMMON STOCKS................................. 99.0 226,196,352 WARRANTS United States....................................... 0.0# 288 REPURCHASE AGREEMENT................................ 1.0 2,151,000 ----- ------------ TOTAL INVESTMENTS................................... 100.0 228,347,640 OTHER ASSETS AND LIABILITIES (NET).................. 0.0# 55,001 ----- ------------ NET ASSETS.......................................... 100.0% $228,402,641 ===== ============
- ------------ # Amount represents less than 0.1% of net assets. See Notes to Financial Statements. 6 [This Page Intentionally Left Blank] 7 MUNDER HEALTHCARE FUND Statement of Assets and Liabilities, June 30, 2003 - -------------------------------------------------------------------------------- ASSETS: Investments, at value See accompanying schedule: Securities.............................................. $226,196,640 Repurchase agreement.................................... 2,151,000 ------------ Total Investments........................................... 228,347,640 Cash........................................................ 313 Foreign currency, at value.................................. 312,566 Interest receivable......................................... 59 Dividends receivable........................................ 28,823 Receivable for securities sold.............................. 1,320,656 Receivable for Fund shares sold............................. 172,652 Prepaid expenses and other assets........................... 41,736 ------------ Total Assets.......................................... 230,224,445 ------------ LIABILITIES: Payable for Fund shares redeemed............................ 682,401 Payable for securities purchased............................ 319,636 Transfer agency/record keeping fees payable................. 191,770 Investment advisory fees payable............................ 190,654 Distribution fees payable................................... 143,872 Trustees' fees and expenses payable......................... 29,768 Administration fees payable................................. 24,994 Custody fees payable........................................ 14,848 Shareholder servicing fees payable.......................... 38 Accrued expenses and other payables......................... 223,823 ------------ Total Liabilities..................................... 1,821,804 ------------ NET ASSETS.................................................. $228,402,641 ============ Investments, at cost........................................ $261,394,271 ============ Foreign currency, at cost................................... $ 312,566 ============
See Notes to Financial Statements. 8 - -------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Accumulated net investment loss............................. $ (70,284) Accumulated net realized loss on investments sold........... (180,539,486) Net unrealized depreciation of investments.................. (33,045,208) Par value................................................... 13,353 Paid-in capital in excess of par value...................... 442,044,266 ------------- NET ASSETS.................................................. $ 228,402,641 ============= NET ASSETS: Class A Shares.............................................. $ 67,455,731 ============= Class B Shares.............................................. $ 104,007,445 ============= Class C Shares.............................................. $ 49,725,200 ============= Class K Shares.............................................. $ 183,632 ============= Class Y Shares.............................................. $ 7,030,633 ============= SHARES OUTSTANDING: Class A Shares.............................................. 3,816,941 ============= Class B Shares.............................................. 6,177,844 ============= Class C Shares.............................................. 2,956,155 ============= Class K Shares.............................................. 10,410 ============= Class Y Shares.............................................. 391,901 ============= CLASS A SHARES: Net asset value and redemption price per share.............. $17.67 ============= Maximum sales charge........................................ 5.50% Maximum offering price per share............................ $18.70 ============= CLASS B SHARES: Net asset value and offering price per share*............... $16.84 ============= CLASS C SHARES: Net asset value and offering price per share*............... $16.82 ============= CLASS K SHARES: Net asset value, offering price and redemption price per share..................................................... $17.64 ============= CLASS Y SHARES: Net asset value, offering price and redemption price per share..................................................... $17.94 =============
- ------------ * Redemption price per share is equal to net asset value per share less any applicable contingent deferred sales charge ("CDSC"). See Notes to Financial Statements. 9 MUNDER HEALTHCARE FUND Statement of Operations, Year Ended June 30, 2003 - -------------------------------------------------------------------------------- INVESTMENT INCOME: Interest.................................................... $ 26,113 Dividends(a)................................................ 229,429 ------------- Total Investment Income............................... 255,542 ------------- EXPENSES: Distribution and shareholder servicing fees: Class A Shares............................................ 152,084 Class B Shares............................................ 924,050 Class C Shares............................................ 461,001 Shareholder servicing fees: Class K Shares............................................ 544 Investment advisory fees.................................... 2,051,062 Transfer agency/record keeping fees......................... 1,011,172 Printing, mailing and solicitation fees..................... 320,514 Administration fees......................................... 278,594 Custody fees................................................ 109,123 Legal and audit fees........................................ 62,503 Registration and filing fees................................ 49,109 Trustees' fees and expenses................................. 23,825 Other....................................................... 22,340 ------------- Total Expenses........................................ 5,465,921 Fees waived by transfer agent............................... (44,024) ------------- Net Expenses................................................ 5,421,897 ------------- NET INVESTMENT LOSS......................................... (5,166,355) ------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized loss from: Security transactions..................................... (123,259,445) Foreign currency-related transactions..................... (64,856) Net change in unrealized appreciation/(depreciation) of: Securities................................................ 139,883,135 Foreign currency-related transactions..................... 885 ------------- Net realized and unrealized gain on investments............. 16,559,719 ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 11,393,364 =============
- ------------ (a) Net of foreign withholding taxes of $16,164. See Notes to Financial Statements. 10 MUNDER HEALTHCARE FUND Statements of Changes in Net Assets - --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED JUNE 30, 2003 JUNE 30, 2002 ------------------------------ Net investment loss............................... $ (5,166,355) $ (7,964,001) Net realized loss on investments sold............. (123,324,301) (54,863,012) Net change in unrealized appreciation/(depreciation) of investments...... 139,884,020 (117,755,722) ------------- ------------- Net increase/(decrease) in net assets resulting from operations................................. 11,393,364 (180,582,735) Net increase/(decrease) in net assets from Fund share transactions: Class A Shares.................................. (17,036,338) (29,774,431) Class B Shares.................................. (20,554,405) (26,523,054) Class C Shares.................................. (14,259,951) (18,271,698) Class K Shares.................................. (233,512) (232,208) Class Y Shares.................................. 353,229 (186,732) ------------- ------------- Net decrease in net assets........................ (40,337,613) (255,570,858) NET ASSETS: Beginning of year................................. 268,740,254 524,311,112 ------------- ------------- End of year....................................... $ 228,402,641 $ 268,740,254 ============= ============= Accumulated net investment loss................... $ (70,284) $ (25,592) ============= =============
See Notes to Financial Statements. 11 MUNDER HEALTHCARE FUND Statements of Changes in Net Assets -- Capital Stock Activity - --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED JUNE 30, 2003 JUNE 30, 2002 ------------------------------ AMOUNT CLASS A SHARES: Sold................................................. $ 20,760,264 $ 48,511,146 Proceeds received in merger.......................... 2,371,060 -- Redeemed............................................. (40,167,662) (78,285,577) ------------ ------------ Net decrease......................................... $(17,036,338) $(29,774,431) ============ ============ CLASS B SHARES: Sold................................................. $ 5,318,800 $ 23,398,083 Proceeds received in merger.......................... 3,683,550 -- Redeemed............................................. (29,556,755) (49,921,137) ------------ ------------ Net decrease......................................... $(20,554,405) $(26,523,054) ============ ============ CLASS C SHARES: Sold................................................. $ 2,582,300 $ 14,172,774 Proceeds received in merger.......................... 1,416,290 -- Redeemed............................................. (18,258,541) (32,444,472) ------------ ------------ Net decrease......................................... $(14,259,951) $(18,271,698) ============ ============ CLASS K SHARES: Sold................................................. $ 20 $ 123,185 Proceeds received in merger.......................... 204 -- Redeemed............................................. (233,736) (355,393) ------------ ------------ Net decrease......................................... $ (233,512) $ (232,208) ============ ============ CLASS Y SHARES: Sold................................................. $ 619,853 $ 550,018 Proceeds received in merger.......................... 96,960 -- Redeemed............................................. (363,584) (736,750) ------------ ------------ Net increase/(decrease).............................. $ 353,229 $ (186,732) ============ ============
See Notes to Financial Statements. 12 - --------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED JUNE 30, 2003 JUNE 30, 2002 ------------------------------ SHARES CLASS A SHARES: Shares authorized ($0.001 par value)................. Unlimited Unlimited =========== =========== Sold................................................. 1,404,022 2,343,490 Issued in exchange for proceeds received in merger... 155,085 -- Redeemed............................................. (2,776,561) (3,926,402) ----------- ----------- Net decrease......................................... (1,217,454) (1,582,912) =========== =========== CLASS B SHARES: Shares authorized ($0.001 par value)................. Unlimited Unlimited =========== =========== Sold................................................. 374,090 1,164,615 Issued in exchange for proceeds received in merger... 252,649 -- Redeemed............................................. (2,158,389) (2,607,371) ----------- ----------- Net decrease......................................... (1,531,650) (1,442,756) =========== =========== CLASS C SHARES: Shares authorized ($0.001 par value)................. Unlimited Unlimited =========== =========== Sold................................................. 183,736 703,177 Issued in exchange for proceeds received in merger... 97,194 -- Redeemed............................................. (1,331,937) (1,687,013) ----------- ----------- Net decrease......................................... (1,051,007) (983,836) =========== =========== CLASS K SHARES: Shares authorized ($0.001 par value)................. Unlimited Unlimited =========== =========== Sold................................................. 2 5,860 Issued in exchange for proceeds received in merger... 13 -- Redeemed............................................. (16,741) (17,854) ----------- ----------- Net decrease......................................... (16,726) (11,994) =========== =========== CLASS Y SHARES: Shares authorized ($0.001 par value)................. Unlimited Unlimited =========== =========== Sold................................................. 41,044 26,883 Issued in exchange for proceeds received in merger... 6,247 -- Redeemed............................................. (22,887) (36,380) ----------- ----------- Net increase/(decrease).............................. 24,404 (9,497) =========== ===========
See Notes to Financial Statements. 13 MUNDER HEALTHCARE FUND(a) Financial Highlights, For a Share Outstanding Throughout Each Period - --------------------------------------------------------------------------------
A SHARES ------------------------------------------------------------------ YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED 6/30/03(C) 6/30/02(C) 6/30/01(C) 6/30/00(C) 6/30/99(C) ------------------------------------------------------------------ Net asset value, beginning of period..... $ 16.11 $ 25.31 $ 28.35 $ 10.46 $11.82 ------- ------- -------- ------- ------ INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment loss...................... (0.29) (0.32) (0.35) (0.22) (0.13) Net realized and unrealized gain/(loss) on investments.......................... 1.85 (8.88) (1.93) 18.11 (1.13) ------- ------- -------- ------- ------ Total from investment operations......... 1.56 (9.20) (2.28) 17.89 (1.26) ------- ------- -------- ------- ------ LESS DISTRIBUTIONS: Distributions from net realized gains.... -- -- (0.55) -- (0.08) Distributions in excess of net realized gains................................... -- -- (0.21) -- (0.02) ------- ------- -------- ------- ------ Total distributions...................... -- -- (0.76) -- (0.10) ------- ------- -------- ------- ------ Net asset value, end of period........... $ 17.67 $ 16.11 $ 25.31 $ 28.35 $10.46 ======= ======= ======== ======= ====== TOTAL RETURN(B).......................... 9.62% (36.28)% (8.38)% 171.03% (10.69)% ======= ======= ======== ======= ====== RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Net assets, end of period (in 000's)..... $67,456 $81,129 $167,514 $79,441 $3,382 Ratio of operating expenses to average net assets.............................. 2.14% 1.63% 1.55% 1.61% 1.61% Ratio of net investment loss to average net assets.............................. (2.02)% (1.54)% (1.28)% (1.01)% (1.27)% Portfolio turnover rate.................. 46% 38% 45% 60% 49% Ratio of operating expenses to average net assets without expense waivers and/or reimbursements................... 2.17% 1.72% 1.55% 1.63% 1.92%
- ------------ (a) The Munder Healthcare Fund Class A Shares and Class B Shares commenced operations on February 14, 1997 and January 31, 1997, respectively. (b) Total return represents aggregate total return for the period indicated and does not reflect any applicable sales charges. (c) Per share numbers have been calculated using the average shares method. See Notes to Financial Statements. 14 - --------------------------------------------------------------------------------
B SHARES - ------------------------------------------------------------------ YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED 6/30/03(C) 6/30/02(C) 6/30/01(C) 6/30/00(C) 6/30/99(C) - ------------------------------------------------------------------ $ 15.47 $ 24.48 $ 27.64 $ 10.27 $11.69 -------- -------- -------- -------- ------ (0.39) (0.45) (0.53) (0.37) (0.21) 1.76 (8.56) (1.87) 17.74 (1.11) -------- -------- -------- -------- ------ 1.37 (9.01) (2.40) 17.37 (1.32) -------- -------- -------- -------- ------ -- -- (0.55) -- (0.08) -- -- (0.21) -- (0.02) -------- -------- -------- -------- ------ -- -- (0.76) -- (0.10) -------- -------- -------- -------- ------ $ 16.84 $ 15.47 $ 24.48 $ 27.64 $10.27 ======== ======== ======== ======== ====== 8.86% (36.78)% (9.04)% 169.13% (11.40)% ======== ======== ======== ======== ====== $104,007 $119,253 $224,080 $102,859 $6,682 2.89% 2.38% 2.30% 2.36% 2.36% (2.77)% (2.29)% (2.03)% (1.75)% (2.02)% 46% 38% 45% 60% 49% 2.92% 2.47% 2.30% 2.38% 2.67%
See Notes to Financial Statements. 15 MUNDER HEALTHCARE FUND(a) Financial Highlights, For a Share Outstanding Throughout Each Period (continued) - --------------------------------------------------------------------------------
C SHARES --------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED 6/30/03(C) 6/30/02(C) 6/30/01(C) 6/30/00(C) 6/30/99(C) --------------------------------------------------------------- Net asset value, beginning of period....... $ 15.45 $ 24.46 $ 27.62 $ 10.27 $11.69 ---------- -------- -------- -------- ------ INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment loss........................ (0.39) (0.45) (0.53) (0.40) (0.21) Net realized and unrealized gain/(loss) on investments............................... 1.76 (8.56) (1.87) 17.75 (1.11) ---------- -------- -------- -------- ------ Total from investment operations........... 1.37 (9.01) (2.40) 17.35 (1.32) ---------- -------- -------- -------- ------ LESS DISTRIBUTIONS: Dividends from net realized gains.......... -- -- (0.55) -- (0.08) Distributions in excess of net realized gains..................................... -- -- (0.21) -- (0.02) ---------- -------- -------- -------- ------ Total distributions........................ -- -- (0.76) -- (0.10) ---------- -------- -------- -------- ------ Net asset value, end of period............. $ 16.82 $ 15.45 $ 24.46 $ 27.62 $10.27 ========== ======== ======== ======== ====== TOTAL RETURN(B)............................ 8.80% (36.77)% (9.05)% 168.94% (11.40)% ========== ======== ======== ======== ====== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)....... $ 49,725 $ 61,925 $122,087 $ 77,156 $1,652 Ratio of operating expenses to average net assets.................................... 2.89% 2.38% 2.30% 2.36% 2.36% Ratio of net investment loss to average net assets.................................... (2.77)% (2.29)% (2.03)% (1.75)% (2.02)% Portfolio turnover rate.................... 46% 38% 45% 60% 49% Ratio of operating expenses to average net assets without expense waivers and/or reimbursements............................ 2.92% 2.47% 2.30% 2.38% 2.67%
- ------------ (a) The Munder Healthcare Fund Class C Shares and Class K Shares commenced operations on January 13, 1997 and April 1, 1997, respectively. (b) Total return represents aggregate total return for the period indicated and does not reflect any applicable sales charges. (c) Per share numbers have been calculated using the average shares method. See Notes to Financial Statements. 16 - --------------------------------------------------------------------------------
K SHARES - ---------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED 6/30/03(C) 6/30/02(C) 6/30/01(C) 6/30/00(C) 6/30/99(C) - ---------------------------------------------------------------------- $ 16.09 $25.29 $28.31 $10.44 $11.80 ---------- ------ ------ ------ ------ (0.29) (0.32) (0.34) (0.19) (0.13) 1.84 (8.88) (1.92) 18.06 (1.13) ---------- ------ ------ ------ ------ 1.55 (9.20) (2.26) 17.87 (1.26) ---------- ------ ------ ------ ------ -- -- (0.55) -- (0.08) -- -- (0.21) -- (0.02) ---------- ------ ------ ------ ------ -- -- (0.76) -- (0.10) ---------- ------ ------ ------ ------ $ 17.64 $16.09 $25.29 $28.31 $10.44 ========== ====== ====== ====== ====== 9.63% (36.35)% (8.32)% 170.91% (10.70)% ========== ====== ====== ====== ====== $ 184 $ 437 $ 990 $ 387 $ 60 2.14% 1.63% 1.55% 1.61% 1.61% (2.02)% (1.54)% (1.28)% (1.01)% (1.27)% 46% 38% 45% 60% 49% 2.17% 1.72% 1.55% 1.63% 1.92%
See Notes to Financial Statements. 17 MUNDER HEALTHCARE FUND(A) Financial Highlights, For a Share Outstanding Throughout Each Period (continued) - --------------------------------------------------------------------------------
Y SHARES ------------------------------------------------------------------- YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED 6/30/03(C) 6/30/02(C) 6/30/01(C) 6/30/00(C) 6/30/99(C) ------------------------------------------------------------------- Net asset value, beginning of period.... $16.32 $25.57 $28.56 $ 10.50 $ 11.84 ------ ------ ------ ------- ------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment loss..................... (0.26) (0.27) (0.29) (0.13) (0.11) Net realized and unrealized gain/(loss) on investments......................... 1.88 (8.98) (1.94) 18.19 (1.13) ------ ------ ------ ------- ------- Total from investment operations........ 1.62 (9.25) (2.23) 18.06 (1.24) ------ ------ ------ ------- ------- LESS DISTRIBUTIONS: Distributions from net realized gains... -- -- (0.55) -- (0.08) Distributions in excess of net realized gains.................................. -- -- (0.21) -- (0.02) ------ ------ ------ ------- ------- Total distributions..................... -- -- (0.76) -- (0.10) ------ ------ ------ ------- ------- Net asset value, end of period.......... $17.94 $16.32 $25.57 $ 28.56 $ 10.50 ====== ====== ====== ======= ======= TOTAL RETURN(B)......................... 9.93% (36.15)% (8.14)% 171.74% (10.42)% ====== ====== ====== ======= ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).... $7,031 $5,997 $9,640 $15,989 $ 5,303 Ratio of operating expenses to average net assets............................. 1.89% 1.38% 1.30% 1.36% 1.36% Ratio of net investment loss to average net assets............................. (1.77)% (1.29)% (1.03)% (0.76)% (1.03)% Portfolio turnover rate................. 46% 38% 45% 60% 49% Ratio of operating expenses to average net assets without expense waivers and/or reimbursements.................. 1.92% 1.47% 1.30% 1.38% 1.67%
- ------------ (a) The Munder Healthcare Fund Class Y Shares commenced operations on December 31, 1996. (b) Total return represents aggregate total return for the period indicated. (c) Per share numbers have been calculated using the average shares method. See Notes to Financial Statements. 18 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 - -------------------------------------------------------------------------------- 1. ORGANIZATION As of June 30, 2003, the Munder Funds (sometimes referred to as the "Funds") consisted of 32 portfolios, each of which is a series of Munder Series Trust ("MST"), The Munder Funds, Inc. ("MFI"), The Munder Framlington Funds Trust ("MFFT") or The Munder @Vantage Fund ("@Vantage"). Information presented in these financial statements pertains only to the Munder Healthcare Fund (the "Fund"), a series of MFFT. MFFT is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company, and was organized as a Massachusetts business trust on October 30, 1996. The Fund is classified as a diversified management investment company under the 1940 Act. The Fund offers 5 classes of shares -- Class A, Class B, Class C, Class K and Class Y Shares. Financial statements for the other Munder Funds are presented in separate reports. On October 31, 2002, the Fund changed its name from Munder Framlington Healthcare Fund to Munder Healthcare Fund. On May 9, 2003, the Fund acquired all of the assets of the Munder Bio(Tech)(2) Fund, a series of MFI, and assumed all liabilities of the Munder Bio(Tech)(2) Fund in a tax-free exchange of shares of the Fund and the subsequent liquidation of the Munder Bio(Tech)(2) Fund. The Agreement and Plan of Reorganization was approved by the shareholders of the Munder Bio(Tech)(2) Fund at a Special Meeting of the Shareholders held on May 7, 2003. Number of Shares outstanding of Munder Bio(Tech)(2) Fund prior to merger Class A................................................... 604,602 Class B................................................... 958,527 Class II.................................................. 367,631 Class K................................................... 51 Class Y................................................... 24,484
Number of Shares issued of the Fund for shares of Munder Bio(Tech)(2) Fund. Class A................................................... 155,085 Class B................................................... 252,649 Class C................................................... 97,194 Class K................................................... 13 Class Y................................................... 6,247 Unrealized depreciation immediately prior to acquisition of all assets and assumption of all liabilities of Munder Bio(Tech)(2) Fund......................................... $(1,540,555)
There were no undistributed income or gain amounts unpaid prior to the merger of the Munder Bio(Tech)(2) Fund. 19 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - --------------------------------------------------------------------------------
PRIOR TO MERGER AFTER MERGER ------------------------------- Net assets of Munder Bio(Tech)(2) Fund Class A...................................... $ 2,371,060 $ -- Class B...................................... 3,683,550 -- Class II..................................... 1,416,290 -- Class K...................................... 204 -- Class Y...................................... 96,960 -- Net assets of the Fund Class A...................................... $56,619,612 $58,990,672 Class B...................................... 87,962,523 91,646,073 Class C...................................... 42,919,169 44,335,459 Class K...................................... 171,561 171,765 Class Y...................................... 5,975,960 6,072,920
2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements: Security Valuation: Securities are valued at the last quoted sales price on the primary market or exchange where such securities are traded, except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price ("NOCP"). Unlisted securities, or securities for which the last quoted sales price or a NOCP is not available, are valued at the mean of the most recently quoted bid and asked prices. Restricted securities, and securities and assets for which market quotations are not readily available, are valued at fair value by a pricing committee, under the guidelines approved by the Board of Trustees. Portfolio securities that are primarily traded on foreign securities exchanges are generally valued at the last sale price of such securities on their respective exchanges, except when an occurrence subsequent to the time a value was so established is likely to have changed such value. In such an event, the fair value of those securities will be determined through the consideration of other factors by or in accordance with guidelines approved by the Board of Trustees. Debt securities with remaining maturities of 60 days or less at the time of purchase are valued on an amortized cost basis, which approximates current market value, unless the Board of Trustees determines that such valuation does not constitute fair value at that time. 20 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- Foreign Currency: The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the end of each business day. Purchases and sales of investment securities and items of income and expense denominated in foreign currencies are translated on the respective dates of such transactions. Unrealized gains and losses resulting from changes in foreign currency exchange rates on all assets and liabilities denominated in foreign currencies other than investment securities are included in the net change in unrealized appreciation/(depreciation) of foreign currency-related transactions. Unrealized gains and losses resulting from changes in foreign currency exchange rates on investment securities denominated in foreign currencies are included in the net change in unrealized appreciation/(depreciation) of securities. Net realized gains and losses from foreign currency-related transactions include foreign currency gains and losses between trade date and settlement date on investment security, foreign currency and foreign interest and dividend income transactions. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date of securities denominated in foreign currencies is included in realized gains and losses from security transactions. Forward Foreign Currency Exchange Contracts and Spot Contracts: The Fund may engage in forward foreign currency exchange and spot contracts in an effort to facilitate transactions in foreign securities and to reduce exposure to foreign currency exchange rates. Forward foreign currency exchange contracts and spot contracts are marked to market daily based on the underlying exchange rates of the contracts. The change in market value is recorded as unrealized appreciation or depreciation from foreign currency-related transactions. When the contract is closed, the Fund records a realized gain or loss from foreign currency-related transactions equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of forward foreign currency exchange and spot 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 exchange and spot contracts 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. 21 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- Repurchase Agreements: The Fund may engage in repurchase agreement transactions. Under the terms of a typical repurchase agreement, the Fund takes possession of an underlying debt obligation 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 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 satisfy the terms of the repurchase agreement. However, there could be potential loss to the Fund in the event the Fund is delayed or prevented from exercising its right to dispose of the collateral securities, including the risk of a possible decline in the value of the collateral securities during the period in which the Fund seeks to assert its rights. Munder Capital Management (the "Advisor") 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. Security Transactions, Net Investment Income and Gains and Losses: For purposes of financial statement presentation, security transactions are recorded on a trade date basis. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Certain dividends from foreign securities are recorded as soon as the Fund is informed of the ex-dividend date if such information is obtained subsequent to the ex-dividend date. General expenses of the Munder Funds are allocated to the Fund based upon the relevant driver of such expenses. General expenses, income and realized and unrealized gains and losses of the Fund are then prorated among the share classes based on the relative average net assets of each class. Fees Waived by Transfer Agent: The transfer agent has contractually agreed to waive, for the period of its contract with the Fund, a portion of the fee it charges the Fund. The amount of the waiver is equal to the servicing fee it collects from Fund shareholders with account balances below a specified minimum. For the year ending June 30, 2003, such waivers were $44,024 and are reflected as fees waived by transfer agent in the accompanying Statement of Operations. Short-Term Trading (Redemption) Fees: Class A, Class B and Class C Shares of the Fund held less than sixty (60) days are subject to a short-term trading fee equal to 2.0% of the proceeds of redeemed shares. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. 22 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- These fees (if any) are shown in the accompanying Statements of Changes in Net Assets as shareholder transaction fees. Dividends and Distributions to Shareholders: Dividends from net investment income are declared and paid annually (if available) by the Fund. The Fund's net realized capital gains (including net short-term capital gains), if any, are declared and distributed at least annually. Distributions to shareholders are recorded on the ex-dividend date. Income dividends 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 the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. As determined on June 30, 2003, permanent differences resulting primarily from different book and tax accounting for net operating losses and currency gains and losses were reclassified at year-end. The following reclassifications had no effect on net investment income, net assets or net asset value per share.
UNDISTRIBUTED ACCUMULATED NET INVESTMENT NET REALIZED PAID-IN INCOME/(LOSS) GAIN/(LOSS) CAPITAL - ------------------------------------------- $5,121,663 $(2,475,028) $(2,646,635)
Federal Income Taxes: The Fund intends to continue to qualify as a regulated investment company by complying with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. Therefore, no Federal income or excise tax provision is required. 3. INVESTMENT ADVISOR, SUB-ADVISOR, ADMINISTRATOR AND OTHER RELATED PARTY TRANSACTIONS For its advisory services, the Advisor is entitled to receive a fee, computed daily and payable monthly, based on the average daily net assets of the Fund at an annual rate of 1.00% based on assets up to $250 million and 0.75% based on assets exceeding $250 million. The Advisor is also the administrator for the Munder Funds. In its capacity as administrator, the Advisor is entitled to receive from the Fund a fee, computed daily and payable monthly, based on the aggregate average daily net assets of all of the portfolios of MFI, MFFT, @Vantage and MST, with the exception of the following portfolios of MST: Munder S&P(R) MidCap Index Equity Fund, Munder S&P(R) SmallCap Index Equity Fund, Munder 23 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- Institutional Government Money Market Fund and Munder Institutional Money Market Fund. The following fee schedule became effective on June 1, 2003:
AGGREGATE NET ASSETS FEE - --------------------------------------------------------------------- First $2.8 billion.......................................... 0.1477% Next $2.2 billion........................................... 0.1377% Next $5.0 billion........................................... 0.1357% Next $2.5 billion........................................... 0.0867% Thereafter.................................................. 0.0767%
Prior to June 1, 2003, the fee schedule in effect was as follows:
AGGREGATE NET ASSETS FEE - -------------------------------------------------------------------- First $2.8 billion.......................................... 0.141% Next $2.2 billion........................................... 0.131% Next $5.0 billion........................................... 0.129% Next $2.5 billion........................................... 0.080% Thereafter.................................................. 0.070%
In its capacity as administrator, the Advisor is also entitled to receive a fee from the remaining Munder Funds based on their aggregate average daily net assets. For the period from June 1, 2002 through May 31, 2003, the Advisor had agreed to limit to $3.9 million the total amount it could receive in the aggregate from the Munder Funds for its services as administrator, after payment of sub-administration fees to the Munder Funds' sub-administrators. For the period from June 1, 2003 through May 31, 2004, the Advisor has reduced that limit to $3.4 million. For the year ended June 30, 2003, the Advisor earned $278,594 before payment of sub-administration fees and $68,484 after payment of sub-administration fees for its administrative services to the Fund. During the year ended June 30, 2003, the Fund paid an effective rate of 0.1363% for administrative services. Pursuant to a sub-advisory agreement with the Advisor, Framlington Overseas Investment Management Limited (the "Sub-Advisor") provides sub-advisory services to the Fund and is responsible for its management, including all decisions regarding purchases and sales of portfolio securities. For its services with regard to the Fund, the Advisor pays the Sub-Advisor a monthly fee equal on an annual basis to 40% of the net advisory revenues earned by the Advisor with respect to the Fund. The Advisor indirectly owns a 49% interest in the Sub-Advisor. Comerica Inc. ("Comerica"), through its wholly-owned subsidiary Comerica Bank, owns approximately 98% of the Advisor. Comerica Bank provides 24 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- certain sub-transfer agency and related services to the Fund. As compensation for the sub-transfer agency and related services provided to the Fund, Comerica Bank receives a fee of 0.01% of the aggregate average daily net assets of the Fund beneficially owned by Comerica Bank and its customers. Comerica Bank earned $402 for its sub-transfer agency and other related services provided to the Fund for the year ended June 30, 2003. Each Director/Trustee of MST, MFI and MFFT is paid an aggregate fee for services provided as a Board member of MST, MFI and MFFT. The fee consists of a $68,000 annual retainer ($90,000 for the Chairman) for services in such capacity, plus out-of-pocket expenses related to attendance at Board and Committee meetings. Each Trustee of @Vantage is paid an annual retainer of $4,000 for services provided as a Board member plus out-of-pocket expenses related to attendance at Board and Committee meetings. A Board member who is Chairman of a committee (Audit Committee, Board Process and Compliance Oversight Committee, and/or Nominating Committee) also receives an annual retainer of $3,000 for such service. Directors/Trustees may elect to defer all or a portion of the fees earned under a deferred compensation plan. Under this plan, amounts deferred are valued as if they are invested in one or more of the Munder Funds selected by the Director/Trustee. These amounts are not, however, actually invested in shares of the Munder Funds, and the obligations of MST, MFI, MFFT and @Vantage to make payments of deferred amounts are unsecured general obligations of the Munder Funds. No officer, director or employee of the Advisor, Sub-Advisor, Comerica or any of Comerica's affiliates receives any compensation from MST, MFI, MFFT or @Vantage. 4. DISTRIBUTION AND SERVICE PLAN The Fund has a Distribution and Service Plan (the "Plan") with respect to the Class A, Class B, Class C and Class K Shares, that was adopted pursuant to Rule 12b-1 under the 1940 Act except with respect to Class K Shares. Under the Plan, service fees are collected from the Fund primarily to pay securities dealers and other financial institutions and organizations (collectively, the "Service Organizations") who provide shareholder services for the Fund. The Plan also permits payments with respect to Class B and Class C Shares to be made by the Fund to the Distributor or directly to other service providers in connection with the distribution of Fund shares to investors and provision of certain shareholder services (which include but are not limited to the payment of compensation, including compensation to Service Organizations to obtain various distribution-related services for the Fund). 25 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- The maximum rates, as a percentage of average daily net assets, payable under the Plan are as follows:
CLASS A CLASS B CLASS C CLASS K SHARES SHARES SHARES SHARES 12b-1 FEES 12b-1 FEES 12b-1 FEES SERVICE FEES - --------------------------------------------------- 0.25% 1.00% 1.00% 0.25%
No payments are made under the Plan with regard to Class Y Shares. Comerica Securities, Inc. ("Comerica Securities"), a wholly-owned subsidiary of Comerica Bank, and Comerica Bank are among the Service Organizations who may receive fees from the Fund under the Plan. For the year ended June 30, 2003, the Fund paid $49 to Comerica Securities and $459 to Comerica Bank for shareholder services provided to Class A, Class B, Class C and Class K shareholders. 5. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales of securities other than short- term investments and U.S. Government securities were $96,255,893 and $160,862,691 respectively, for the year ended June 30, 2003. At June 30, 2003, aggregate gross unrealized appreciation for all securities for which there was an excess of value over tax cost was $36,785,219 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over value was $70,047,843 and net depreciation for Federal income tax purposes was $33,262,624. At June 30, 2003, aggregate cost for Federal income tax purposes was $261,610,264. 6. INDUSTRY CONCENTRATION The Fund primarily invests in companies providing healthcare and medical services. The values of these companies are particularly vulnerable to rapidly changing technology, extensive government regulation and relatively high risks of obsolescence caused by scientific and technological advances. 7. REVOLVING LINE OF CREDIT Effective December 18, 2002, the Munder Funds renewed a one-year revolving line of credit with State Street Bank and Trust Company in which the Fund, and other Munder Funds, participate. Borrowings under the line may not exceed the lesser of $75,000,000 or 15% of the value of the total assets of the Fund. Interest is payable on outstanding borrowings at the Federal Funds Rate plus 0.50%. Additionally, the line of credit includes an annual commitment fee equal to 0.10% per annum through December 17, 2003 on the daily amount of the unused commitment. During the year ended June 30, 26 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- 2003, the Fund did not utilize the revolving line of credit. For the year ended June 30, 2003 total commitment fees for the Fund were $4,998. 8. DISTRIBUTIONS TO SHAREHOLDERS At June 30, 2003, the components of distributable earnings on a tax basis were as follows:
POST OCTOBER UNREALIZED LOSS/CAPITAL APPRECIATION/ LOSS CARRYOVER (DEPRECIATION) TOTAL - --------------------------------------------------- $ (180,369,554) $(33,261,201) $(213,630,755)
The differences between book and tax distributable earnings are primarily due to wash sales. 9. INCOME TAX INFORMATION As determined at June 30, 2003, the Fund had available for Federal income tax purposes, $132,990,259 of unused capital losses of which $3,121,589 and $129,868,670 expire in 2010 and 2011, respectively. In addition, $2,475,702 of the losses expiring in 2010, may be further limited as these amounts were acquired in the reorganization with the Munder Bio(Tech)(2) Fund that occurred on May 9, 2003. Certain capital and net foreign currency losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. The Fund has elected to defer net capital and currency losses arising between November 1, 2002 and June 30, 2003 of $47,333,234 and $46,061, respectively. 10. SHAREHOLDER MEETING RESULTS (UNAUDITED) A Special Meeting of Shareholders ("Merger Special Meeting") of the Munder Bio(Tech)(2) Fund, a series of MFI, was held on April 23, 2003. The Merger Special Meeting was adjourned to another date in order to permit shareholders further time to respond to the solicitation of proxies. The Merger Special Meeting reconvened on April 28, 2003, and was further adjourned twice until April 30, 2003 and again until May 7, 2003. On May 7, 2003, the Merger Special Meeting reconvened for the last time. The purpose of the Merger Special Meeting was to seek the approval or disapproval from the shareholders of the Munder Bio(Tech)(2) Fund of an Agreement and Plan of Reorganization providing for the acquisition of all of the assets of the Munder Bio(Tech)(2) Fund by the Fund and the assumption of all liabilities of the Munder Bio(Tech)(2) Fund by the Fund in exchange for shares of the Fund and 27 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- the subsequent liquidation of the Munder Bio(Tech)(2) Fund. The Agreement and Plan of Reorganization was approved by shareholders. The results of the vote were 1,171,708.623 votes For, 60,589.519 votes Against, 36,062.260 Abstentions and 570,859.000 Broker Non-Votes. A Special Meeting of Shareholders ("Special Meeting") of the Fund, a series of MFFT, was held on April 28, 2003. The Special Meeting was adjourned to another date in order to permit shareholders further time to respond to the solicitation of proxies. The Special Meeting reconvened on May 28, 2003, was further adjourned, and reconvened again on June 12, 2003. The purpose of the Special Meeting was to ask shareholders to consider the following proposals, which were more fully described in the Proxy Statement dated February 21, 2003. PROPOSAL 1 The purpose of this proposal was to elect the Munder Funds Board of Directors/Trustees. The shareholders of the Fund together with the other shareholders of MFFT approved the proposal, as did the shareholders of MFI, MFT and St. Clair Funds, Inc. The names of the Directors/Trustees and the results of the election for MFFT are as set forth below.
NOMINEES: NO. OF SHARES - ------------------------------------------------------------------------------ David J. Brophy............................. Affirmative 14,806,954.364 Withhold 231,323.019 TOTAL 15,038,277.383 Joseph E. Champagne......................... Affirmative 14,805,566.487 Withhold 232,710.896 TOTAL 15,038,277.383 Thomas D. Eckert............................ Affirmative 14,808,518.392 Withhold 229,758.991 TOTAL 15,038,277.383 Charles W. Elliott.......................... Affirmative 14,804,709.045 Withhold 233,568.338 TOTAL 15,038,277.383 John Engler................................. Affirmative 14,777,527.236 Withhold 260,750.147 TOTAL 15,038,277.383 Michael T. Monahan.......................... Affirmative 14,807,993.874 Withhold 230,283.509 TOTAL 15,038,277.383 Arthur T. Porter............................ Affirmative 14,807,638.630 Withhold 230,638.753 TOTAL 15,038,277.383 John Rakolta, Jr............................ Affirmative 14,804,882.994 Withhold 233,394.389 TOTAL 15,038,277.383
28 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- PROPOSAL 2 The purpose of this proposal was to seek approval of an Agreement and Plan of Reorganization and Redomiciliation ("Reorganization Agreement"), pursuant to which the Fund would be reorganized with and into a corresponding series of MST. The proposal did not receive a sufficient number of total votes by shareholders of the Fund to pass. The results of the votes are as set forth below.
NO. OF SHARES -------------- For........................................................ 4,870,102.541 Against.................................................... 281,813.399 Abstain.................................................... 222,689.865 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3 The purpose of this proposal was to ask shareholders to amend or eliminate certain fundamental investment restrictions of the Fund. None of the proposals was intended to materially alter the investment risk associated with the Fund or change the way in which it was managed. No part of the proposal received a sufficient number of total votes by shareholders of the Fund to pass. The results of the votes are as set forth below. PROPOSAL 3.A -- DIVERSIFICATION
NO. OF SHARES -------------- For........................................................ 4,831,086.310 Against.................................................... 292,962.284 Abstain.................................................... 250,557.211 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.B -- BORROWING
NO. OF SHARES -------------- For........................................................ 4,759,009.965 Against.................................................... 354,968.021 Abstain.................................................... 260,627.819 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
29 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- PROPOSAL 3.C -- SENIOR SECURITIES
NO. OF SHARES -------------- For........................................................ 4,772,684.391 Against.................................................... 338,022.057 Abstain.................................................... 263,899.357 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.D -- UNDERWRITING SECURITIES
NO. OF SHARES -------------- For........................................................ 4,790,517.869 Against.................................................... 330,549.070 Abstain.................................................... 253,538.866 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.E -- REAL ESTATE
NO. OF SHARES -------------- For........................................................ 4,799,251.931 Against.................................................... 328,019.072 Abstain.................................................... 247,334.802 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.F -- MAKING LOANS
NO. OF SHARES -------------- For........................................................ 4,732,079.781 Against.................................................... 376,853.179 Abstain.................................................... 265,672.845 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.G -- CONCENTRATION OF INVESTMENTS
NO. OF SHARES -------------- For........................................................ 4,812,600.763 Against.................................................... 307,193.275 Abstain.................................................... 254,811.767 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
30 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- PROPOSAL 3.H -- COMMODITIES
NO. OF SHARES -------------- For........................................................ 4,759,741.045 Against.................................................... 354,834.104 Abstain.................................................... 260,030.656 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.I -- PLEDGING, MORTGAGING AND HYPOTHECATING FUND ASSETS
NO. OF SHARES -------------- For........................................................ 4,748,054.817 Against.................................................... 359,260.324 Abstain.................................................... 267,290.664 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.K -- INVESTMENTS FOR CONTROL
NO. OF SHARES -------------- For........................................................ 4,782,180.171 Against.................................................... 322,656.744 Abstain.................................................... 269,768.890 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.O -- MARGIN ACTIVITIES AND SHORT SELLING
NO. OF SHARES -------------- For........................................................ 4,755,290.592 Against.................................................... 365,792.347 Abstain.................................................... 253,522.866 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
PROPOSAL 3.P -- REVERSE REPURCHASE AGREEMENTS
NO. OF SHARES -------------- For........................................................ 4,756,394.177 Against.................................................... 359,698.612 Abstain.................................................... 258,513.016 Broker Non-votes........................................... 5,089,992.000 TOTAL...................................................... 10,464,597.805
31 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - -------------------------------------------------------------------------------- 11. DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED) Information about the Directors/Trustees and executive officers of the Munder Funds, including their business addresses, ages and principal occupations during the past five years, and other current directorships of publicly traded companies or funds, are set forth in the table below. A Director/Trustee is deemed to be a "Non-Interested Director/Trustee" to the extent the Director/Trustee is not an "interested person" of the Munder Funds (as that term is defined in Section 2(a)(19) of the 1940 Act).
NUMBER OF PORTFOLIOS TERM OF IN FUND OFFICE(1) PRINCIPAL COMPLEX OTHER POSITION(S) WITH AND LENGTH OF OCCUPATION(S) OVERSEEN DIRECTORSHIPS THE MUNDER TIME DURING BY DIRECTOR/ HELD BY NAME, ADDRESS AND AGE FUNDS SERVED(2) PAST 5 YEARS TRUSTEE DIRECTOR/TRUSTEE - ------------------------------------------------------------------------------------------------------------ NON-INTERESTED DIRECTORS/TRUSTEES Charles W. Elliott Director/Trustee Indefinite Consultant, 32 None c/o The Munder Funds and Chairman since 11/89 self- employed 480 Pierce Street (since 7/95); Suite 300 Senior Advisor Birmingham, MI 48009 to President, Age 71 Western Michigan University (7/95 to 12/98). John Rakolta, Jr. Director/Trustee Indefinite Chairman and 32 None c/o The Munder Funds and Vice since 2/93 Chief Executive 480 Pierce Street Chairman Officer, Suite 300 Walbridge Birmingham, MI 48009 Aldinger Age 56 Company (construction company) (since 1991). David J. Brophy Director/Trustee Indefinite Professor of 32 None c/o The Munder Funds since 5/93 Finance, 480 Pierce Street University of Suite 300 Michigan- Birmingham, MI 48009 Business School Age 67 (since 8/66). Joseph E. Champagne Director/Trustee Indefinite Vice President, 32 None c/o The Munder Funds since 11/89 Macomb College 480 Pierce Street (since 2001); Suite 300 Dean, Macomb Birmingham, MI 48009 College (since Age 65 9/97).
32 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS TERM OF IN FUND OFFICE(1) PRINCIPAL COMPLEX OTHER POSITION(S) WITH AND LENGTH OF OCCUPATION(S) OVERSEEN DIRECTORSHIPS THE MUNDER TIME DURING BY DIRECTOR/ HELD BY NAME, ADDRESS AND AGE FUNDS SERVED(2) PAST 5 YEARS TRUSTEE DIRECTOR/TRUSTEE - ------------------------------------------------------------------------------------------------------------ Thomas D. Eckert Director/Trustee Indefinite Director, 32 None c/o The Munder Funds since 2/93 President and 480 Pierce Street Chief Executive Suite 300 Officer, Birmingham, MI 48009 Capital Age 55 Automotive REIT (real estate investment trust specializing in retail automotive properties) (since 10/97). John Engler Director/Trustee Indefinite President of 32 Universal Forest c/o The Munder Funds since 2/03 State and Local Products, Inc. 480 Pierce Street Government/Vice (manufacturer Suite 300 President of and distributor Birmingham, MI 48009 Government of lumber Age 54 Solutions for products) (since North America, 1/03); Northwest Electronic Data Airlines (since Systems Corp. 4/03). (computer services) (since 1/03); Governor of the State of Michigan (1/91 to 1/03). Arthur T. Porter Director/Trustee Indefinite President and 32 None 3990 John R. since 2/01 Chief Executive Detroit, MI 48201 Officer of the Age 47 Detroit Medical Center (since 3/99); Professor with Tenure and Chairman of Radiation Oncology of Wayne State University School of Medicine (3/91 to 3/99).
33 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS TERM OF IN FUND OFFICE(1) PRINCIPAL COMPLEX OTHER POSITION(S) WITH AND LENGTH OF OCCUPATION(S) OVERSEEN DIRECTORSHIPS THE MUNDER TIME DURING BY DIRECTOR/ HELD BY NAME, ADDRESS AND AGE FUNDS SERVED(2) PAST 5 YEARS TRUSTEE DIRECTOR/TRUSTEE - ------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE Michael T. Monahan(3) Director/Trustee Indefinite President of 32 CMS Energy 3707 West Maple Rd. since 8/00 Monahan Corporation Suite 102 Enterprises, (energy company) Bloomfield Hills, MI 48301 LLC (consulting (since 12/02); Age 64 company) (since Guilford Mills, 6/99); Chairman Inc. (supplier of Munder of automotive Capital textile Management products) (since (investment 10/02). advisor) (10/99 to 12/00); Chairman and Chief Executive Officer of Munder Capital Management (10/99 to 12/99); President of Comerica Incorporated (bank holding company) (6/92 to 6/99).
- ---------------------------------------------------------------------------------------------------------- (1) A Director/Trustee may serve until his death, resignation, removal or retirement. Pursuant to the Fund's By-Laws, any Director/Trustee shall retire as Director/Trustee at the end of the calendar year in which he attains the age of 75 years. (2) Length of time served is measured from the earliest date of service as a Director/Trustee of any of the Munder Funds or their predecessors. (3) Mr. Monahan is an "interested person" of the Fund as defined in the 1940 Act. Mr. Monahan owns stock in Comerica.
34 MUNDER HEALTHCARE FUND Notes to Financial Statements, June 30, 2003 (continued) - --------------------------------------------------------------------------------
TERM OF OFFICE(1) AND LENGTH OF POSITION(S) WITH TIME NAME, ADDRESS AND AGE THE TRUST SERVED(2) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS - -------------------------------------------------------------------------------------------------------- OFFICERS James C. Robinson President through 2/04; Chairman and Chief Executive Officer of 480 Pierce Street since 5/00 Munder Capital Management (investment Suite 300 advisor) (since 1/00); Chief Investment Birmingham, MI 48009 Officer/Fixed Income of Munder Capital Age 42 Management (1/90 to 1/00). Stephen J. Shenkenberg Vice President through 2/04; General Counsel of Munder Capital 480 Pierce Street and Secretary since 8/00 Management (investment advisor) (since Suite 300 7/00); Deputy General Counsel of Strong Birmingham, MI 48009 Capital Management, Inc. (investment Age 45 advisor) (12/92 to 7/00). Peter K. Hoglund Vice President through 2/04; Chief Administration Officer of Munder 480 Pierce Street since 2/01 Capital Management (investment advisor) Suite 300 (since 5/00); Associate of Heartland Birmingham, MI 48009 Industrial Partners (a private equity Age 37 group) (10/99 to 5/00); Sr. Portfolio Manager of Munder Capital Management (1/98 to 10/99). Cherie Ugorowski Treasurer through 2/04; Controller of Munder Capital Management 480 Pierce Street since 8/01 (investment advisor) (since 6/01); Suite 300 Corporate Accounting Manager, Birmingham, MI 48009 DaimlerChrysler Corporation (automotive Age 34 manufacturer) (9/99 to 6/01); Manager, Audit and Business Advisory Practice, Arthur Andersen LLP (5/95 to 9/99). - -------------------------------------------------------------------------------------------------------- (1) The officers are elected annually by the Board. (2) Length of time served is measured from the earliest date of service as an officer of any of the Munder Funds or their predecessors.
The Statement of Additional Information for the Fund includes additional information about Directors/Trustees and is available, without charge, upon request, by calling (800) 438-5789. 35 REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS To the Shareholders of Munder Healthcare Fund and Board of Trustees of The Munder Framlington Funds Trust We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Munder Healthcare Fund (formerly Munder Framlington Healthcare Fund, the portfolio comprising The Munder Framlington Funds Trust) (the "Fund") as of June 30, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of June 30, 2003 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Munder Healthcare Fund portfolio of The Munder Framlington Funds Trust at June 30, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States. -s- Ernst & Young LLP Boston, Massachusetts August 14, 2003 36 [This Page Intentionally Left Blank] 37 BOARD OF TRUSTEES Charles W. Elliott, Chairman John Rakolta, Jr., Vice Chairman David J. Brophy Joseph E. Champagne Thomas D. Eckert John Engler Michael T. Monahan Arthur T. Porter OFFICERS James C. Robinson, President Peter K. Hoglund, Vice President Stephen J. Shenkenberg, Vice President and Secretary Mary Ann Shumaker, Assistant Secretary Melanie Mayo West, Assistant Secretary Cherie N. Ugorowski, Treasurer David W. Rumph, Assistant Treasurer Bradford E. Smith, Assistant Treasurer INVESTMENT ADVISOR & ADMINISTRATOR Munder Capital Management Munder Capital Center 480 Pierce Street Birmingham, MI 48009 SUB-ADVISOR Framlington Overseas Investment Management Limited 155 Bishopsgate London, England EC2M 3XJ TRANSFER AGENT PFPC, Inc. 4400 Computer Drive Westborough, MA 01581 SUB-ADMINISTRATOR & CUSTODIAN State Street Bank & Trust Company 225 Franklin Street Boston, MA 02110 DISTRIBUTOR & SUB-ADMINISTRATOR Funds Distributor, Inc./BISYS Fund Services, Inc. 60 State Street Boston, MA 02109 LEGAL COUNSEL Dechert LLP 1775 I Street, N.W. Washington, D.C. 20006 INDEPENDENT AUDITORS Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 ANNHC603 ITEM 2. CODE OF ETHICS. Not required. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not required. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not required. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Within 90 days of the filing date of this Form N-CSR, James C. Robinson, the registrant's President and Principal Executive Officer, and Peter K. Hoglund, the registrant's Vice President and Principal Financial Officer, reviewed the registrant's disclosure controls and procedures as defined in Rule 30a-3(c) of under the Investment Company Act of 1940 (the "Procedures") and evaluated their effectiveness. Based on their review, Mr. Robinson and Mr. Hoglund determined that the Procedures adequately ensure that information required to be disclosed by the registrant in periodic reports filed under the Securities and Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the Securities and Exchange Commission. (b) There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10. EXHIBITS (a)(1) Not required. (a)(2) The certifications required by Rule 30a-2 of the Investment Company Act of 1940 are attached hereto. (b) The certifications required by Rule 30a-2(b) of the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE MUNDER FRAMLINGTON FUNDS TRUST By: /s/ James C. Robinson --------------------- James C. Robinson President Date: November 21, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James C. Robinson --------------------- James C. Robinson President and Principal Executive Officer Date: November 21, 2003 By: /s/ Peter K. Hoglund -------------------- Peter K. Hoglund Vice President and Principal Financial Officer Date: November 21, 2003 EX-99.CERT 3 k81098exv99wcert.txt 302 CERTIFICATION OF CEO & CFO EX-99.CERT I, James C. Robinson, President and Principal Executive Officer of The Munder Framlington Funds Trust, certify that: 1. I have reviewed this report on Form N-CSR of The Munder Framlington Funds Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: November 21, 2003 By: /s/ James C. Robinson --------------------- James C. Robinson President and Principal Executive Officer I, Peter K. Hoglund, Vice President and Principal Financial Officer of The Munder Framlington Funds Trust, certify that: 1. I have reviewed this report on Form N-CSR of The Munder Framlington Funds Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: November 21, 2003 By: /s/ Peter K. Hoglund -------------------- Peter K. Hoglund Vice President and Principal Financial Officer EX-99.906CERT 4 k81098exv99w906cert.txt 906 CERTIFICATION OF CEO & CFO EX-99.906CERT I, James C. Robinson, President and Principal Executive Officer, and I, Peter K. Hoglund, Vice President and Principal Financial Officer, of The Munder Framlington Funds Trust (the "Trust") each certify that: 1. This Form N-CSR filing for the Trust (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. By: /s/ James C. Robinson --------------------- James C. Robinson President and Principal Executive Officer Date: November 21, 2003 By: /s/ Peter K. Hoglund -------------------- Peter K. Hoglund Vice President and Principal Financial Officer Date: November 21, 2003 A signed original of this written statement required by Section 906 or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to The Munder Framlington Funds Trust and will be retained by The Munder Framlington Funds Trust and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----